HB2448

SECTION 1. Section 371-11, Hawaii Revised Statutes, is amended to read as follows:

"§371‑11 Research and statistics; employers to keep certain records[.]; statewide data hub. (a) The department of labor and industrial relations:

(1) Shall investigate and gather data regarding the wages, hours, and other conditions and practices of employment in the State, and may enter and inspect places and records, and make transcriptions thereof, and investigate facts, conditions, practices, or matters as are necessary or appropriate to carry into effect the duties imposed upon it under this chapter or under the rules of the department;

(2) May investigate, collect, and publish information relating to the cost of living in the State as it deems advisable; and

(3) Shall collect, file, and publish information relating to labor and industrial relations and shall perform other duties as the director of labor and industrial relations shall by rule prescribe.

(b) Every employer subject to this chapter or any rule or regulation of the department issued under this chapter shall make, keep, and preserve records of the persons employed by the employer and of the wages, hours, and other conditions and practices of employment, maintained by the employer, and preserve the records for periods of time, as the department may by rule prescribe. In addition, every employer, regardless of whether they use a professional employer organization or a third-party administrator, shall keep a record of the former physical addresses and current physical address of the employer and the North American Industry Classification System code applicable to the employer.

(c) The director or the director's authorized representative shall for the purpose of examination have access to and the right to copy from the records any matter or thing pertinent to this section, and every employer shall furnish to the director or the director's authorized representative on demand a copy under oath of the material portion of the records as the director or the director's authorized representative requires, and if the director so requires, upon forms prescribed or approved by the director.

(d) The department shall establish and maintain a statewide data hub to collect employer and employee data. In carrying out its tasks, the department shall:

(1) Have the authority to determine the type of employer and employee data to collect, the functions of the statewide data hub, and access and document retention policies for the data;

(2) Work with the chief information officer to ensure to the maximum extent possible that the integrity and security of the information is maintained and to comply with any applicable requirements of chapter 27, part VII, and related rules;

(3) Consider designing the hub in a manner that will allow it to provide critical cross-matching functionality with other resources to combat the challenges of unemployment insurance fraud and to assist in the processing of unemployment insurance claims; and

(4) Not publicly disclose any data that is protected by law.

For purposes of this subsection "employer" shall have the same meaning as in section 371-1; provided that "employer" shall include the State and any political subdivision thereof.

(e) The department shall adopt all necessary rules and regulations to carry out the purposes of this section."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2022-2023 for the purpose of designing, installing, populating, and managing the statewide data hub.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $260,000 or so much thereof as may be necessary for fiscal year 2022-2023 for the following positions to staff the statewide data hub:

(1) One full-time equivalent (1.00 FTE) permanent supervisory position to oversee the establishment and management of the statewide data hub and associated employees; and

(2) Three full-time equivalent (3.00 FTE) permanent data analyst positions.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that sections 2 and 3 shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2448
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII