STAND. COM. REP. NO. 148-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2357

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. 2357 entitled:

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

begs leave to report as follows:

The purpose of this measure is to regulate the use of artificial intelligence across several sectors by:

(1) Prohibiting music streaming platforms from hosting or distributing music performed or attributed to artificial intelligence music artists;

(2) Appropriating funds to the Department of Agriculture to use artificial intelligence to support the agricultural industry; and

(3) Requiring clear disclosures when tangible products are created with the use of artificial intelligence and making violations an unfair method of competition and an unfair or deceptive act or practice.

Your Committee received testimony in support of this measure from two individuals. Your Committee received testimony in opposition to this measure from the Chamber of Progress. Your Committee received comments on this measure from the Department of the Attorney General and Department of Business, Economic Development, and Tourism.

Your Committee finds that artificial intelligence technologies have rapidly expanded in capability and commercial use, raising concerns about consumer protection, transparency, and the displacement or misrepresentation of human creative work. Your Committee further finds that it is important to protect human artists' creative output, and the regulation proposed by this measure is one avenue by which to do so.

Your Committee has amended this measure by:

(1) Removing the appropriation;

(2) Removing the provisions requiring disclosures for tangible products created with the use of artificial intelligence;

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

(4) 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. 2357, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2357, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

GREGGOR ILAGAN, Chair