STAND. COM. REP. NO. 1185

Honolulu, Hawaii

, 2025

RE: S.B. No. 1491

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Labor, to which was referred S.B. No. 1491, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DEPARTMENTAL DATA SHARING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Include the Department of Taxation and Department of Business, Economic Development, and Tourism in the list of state agencies sharing data through the statewide longitudinal data system; and

(2) Authorize the Department of Taxation to share certain wage data with the University of Hawaii and other state agencies.

Your Committee received testimony in support of this measure from the Department of Taxation; University of Hawaiʻi System; and Hawaiʻi P-20 Partnerships for Education. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; and Tax Foundation of Hawaii.

Your Committee finds that data currently collected by state educational systems and workforce training agencies does not include information from certain segments of the State's workforce, including those who are self-employed. This leaves the current workforce data incomplete. Your Committee further finds that gathering data from tax filings of those who are self‑employed, as provided by the Department of Taxation, will provide a more accurate analysis of Hawaii's workforce. This measure will help formulate better policy while ensuring safeguards for privacy and confidentiality.

Your Committee has amended this measure by:

(1) Requiring the data shared by the Department of Business, Economic Development, and Tourism, to be aggregated or anonymized; and

(2) Changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1491, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1491, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair