On January 24, 2024, House Bill (HB) 1607, a companion bill of SB 2524, relating to algorithmic discrimination was referred to the House Committees on Higher Education & Technology and Judiciary & Hawaiian Affairs after passing its first reading in the House of Representatives on January 17, 2024. 

What is the scope of the bill? 

Notably, 'covered entity' would include any individual, firm, corporation, partnership, cooperative, association, or any other organization, legal entity, or group of individuals however organized, including entities related by common ownership or corporate control, that either makes algorithmic eligibility determinations or algorithmic information availability determinations, or relies on algorithmic eligibility determinations or algorithmic information availability determinations supplied by a service provider, and that meets one or more of the following criteria:

• possesses or controls personal information on more than 25,000 residents of Hawaii;
• has more than $15 million in average annualized gross receipts for the three years preceding the most recent fiscal year;
• is a data broker, or other entity, that derives 50% or more of its annual revenue by collecting, assembling, selling, distributing, providing access to, or maintaining personal information, and some proportion of the personal information concerns a resident of Hawaii who is not a customer or an employee of that entity; or
• is a service provider.

What are the key provisions of the bill?

The bill defines key terms including 'algorithmic eligibility determination,' 'algorithmic information availability determination,' 'adverse action,' and 'important life opportunities.'

Furthermore, the bill provides for prohibited practices and exemptions for covered entities stating, among other things, that covered entities shall not make an algorithmic eligibility determination or an algorithmic information availability determination on the basis of an individual's or class of individuals' actual or perceived race, color, religion, national origin, sex, gender identity or expression, sexual orientation, familial status, source of income, or disability in a manner that segregates, discriminates against, or otherwise makes important life opportunities unavailable to an individual or class of individuals.

Moreover, the bill would require a covered entity to, among other things, develop a notice that explains how the covered entity uses personal information in algorithmic eligibility determinations and algorithmic information availability determinations. The bill additionally states the details that must be provided in the notice and the manner of the notice. The bill would also require a covered entity to perform an annual audit for its algorithmic eligibility determination and algorithmic information availability determination practices and lay down what assessments must be conducted during the audit, including, impact assessments.

If enacted, the bill would take effect on the date of approval.

You can read the bill here and track its progress here.