STAND. COM. REP. NO. 152-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2137

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 2137 entitled:

"A BILL FOR AN ACT RELATING TO ARTIFICIAL INTELLIGENCE,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit certain harmful uses of, and mandate disclosure for, realistic digital imitations generated by artificial intelligence (AI);

(2) Provide for civil actions and civil remedies for individuals injured by unauthorized AI-generated realistic digital imitations; and

(3) Require the disclosure of the use of synthetic performers in advertising.

Your Committee received testimony in support of this measure from SAG-AFTRA Hawaiʻi Local; ʻOhina Labs; Pride at Work - Hawaiʻi; University of Hawaii Professional Assembly; and numerous individuals. Your Committee received testimony in opposition to this measure from the Chamber of Progress.

Your Committee finds that AI technologies have made it increasingly easy to create realistic digital imitations capable of deceiving the public and causing reputational, financial, and emotional harm. Your Committee further finds that these technologies have been used in instances of fraud, identity theft, and harassment and have been deployed in commercials and films without consent, compensation, or credit. Although there are some federal laws regarding malicious use of deepfake technology, these laws leave broad gaps in consumer and reputational protection. This measure will provide safeguards against malicious uses of AI while preserving lawful expressive activities such as parody, satire, journalism, and artistic works.

Your Committee has amended this measure by:

(1) Expanding exemptions to the prohibition against, and mandatory disclosure requirements for, digital imitations of identifiable individuals;

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

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2137, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2137, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair