AI Frontier Institute

Relating To Algorithmic Discrimination.

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Hawaii S.B. 59 (33rd Legislature, 2025) creates a new chapter in the Hawaii Revised Statutes prohibiting algorithmic discrimination by 'covered entities' — defined in Section -1 as organizations that make or rely on AI/machine-learning-based eligibility or information-availability determinations and that meet at least one of four size/revenue/data-broker thresholds (e.g., holding personal data on more than 25,000 Hawaii residents, or averaging more than $15,000,000 in annual gross receipts). Section -2 bars covered entities from making algorithmic eligibility or information-availability determinations on the basis of protected characteristics — including race, religion, sex, gender identity, sexual orientation, disability, and others — in ways that deny or restrict access to 'important life opportunities' such as credit, insurance, education, employment, housing, or public accommodations. Section -3 requires covered entities that rely on service providers for these determinations to impose compliance obligations on those providers by written agreement. Section -4 establishes notice and disclosure rights: covered entities must publish a clear, multilingual notice explaining data collection and algorithmic use practices, update it within 30 days of material changes, and provide individualized written or electronic disclosures — including the factors relied upon and the right to request a human-conducted reevaluation — whenever an adverse action is taken based on an algorithmic eligibility determination. Section -5 mandates annual audits of algorithmic practices to detect discriminatory or disparate-impact effects across protected classes, requires five-year retention of audit trails for each determination, and obligates covered entities to submit annual reports to the Department of the Attorney General detailing methodologies, training data, performance metrics, and complaint history. Section -6 authorizes the Attorney General to bring civil actions seeking injunctions, penalties up to $10,000 per violation, damages, or other relief, and grants aggrieved individuals a private right of action for statutory damages of $100–$10,000 per violation or actual damages (whichever is greater), plus potential punitive damages and attorneys' fees. The bill takes effect upon approval.

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