STAND. COM. REP. NO. 1119-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2137

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2137, H.D. 2, 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;

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

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

(4) Establish civil fines for violations of the requirements for disclosure of the use of synthetic performers in advertising.

Your Committee received testimony in support of this measure from the Hawaii State Commission on the Status of Women; Imua Alliance; and two individuals. Your Committee received testimony in opposition to this measure from the Motion Picture Association; Hawaiian Island Republican Women; and one individual. Your Committee received comments on this measure from the University of Hawaii Professional Assembly.

Your Committee finds that as artificial intelligence advances, the potential for abuse increases. In the absence of clear standards, businesses may produce highly realistic digital replicas of performers, workers, or private individuals and use them in advertising or entertainment without permission, payment, or acknowledgment. For individuals whose income depends on their identity or likeness, these practices pose a serious economic threat. This measure establishes enforceable safeguards by requiring transparent disclosures for certain artificial intelligence–generated content.

Your Committee has amended this measure by:

(1) Exempting artistic or educational content generated or altered by artificial intelligence from prohibitions and disclosure requirements for realistic digital imitation;

(2) Clarifying the exemptions from the disclosure requirements for medium used for advertising;

(3) Requiring the Attorney General to enforce and assess civil penalties against any person violating disclosure requirements for the use of synthetic performers in advertising; 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 Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2137, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2137, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair