House rejects participation in federal data program

New Hampshire Business Review, May 9, 2008 by Sanders, Bob

It looks like concerns over- privacy have scuttled a proposal for the state Department of Labor to participate in a federal joint local employment dynamics program, which is supposed to give businesses considering locating in New Hampshire better data.

The bill, which was defeated in the House last month, would have allowed the state Labor Department - along with its counterparts in 47 other states - to share the employee data it collects from employers with the U.S. Census Bureau.

The federal agency can crunch the numbers to provide a quick and updated profile of the labor situation for companies considering moving their business or starting up a business in New Hampshire. But raw data transmitted to the federal government includes the employee names, Social Security numbers and place of employment.

Supporters - including the House Labor, Industrial and Rehabilitative Services Committee, which recommended the bill - said that the state Labor Department already collects this information and that there are plenty of safeguards in place when it is transferred.

"We gain a valuable tool to bring businesses into our states," said Rep. Sally Kelly, D-Chichester, "The benefits outweight the risks."

But opponents - led by privacy advocate Rep. Neal Kurk, R-Weare - argued that the state could develop the information on its own, and that the more people who had this information, the more likely that it would fall into the hands of hackers, or even worse.

"You know what happened to Hannaford in the private sector," he said. "We have federal administrations abusing the information entrusted to them. Why give them more?"

The House overturned the committee's recommendation by a 166-147 vote, but supporters managed to table the measure before it was completely killed, giving them another shot at passage later on.