STAND. COM. REP. NO. 3358

 

Honolulu, Hawaii

                   

 

RE:     H.B. No. 2597

        H.D. 1

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

 

Sir:

 

     Your Committees on Labor and Technology and Government Operations, to which was referred H.B. No. 2597, H.D. 1, entitled:

 

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

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Require the Chief Data Officer to enhance the State's open data portal website through the phased development and publishing of an artificial intelligence chatbot and necessary data visualizations on statewide shared data sets to assist the public;

 

     (2)  Require the Chief Data Officer to develop a system to evaluate and select artificial intelligence governance tools for use by state departments and agencies and establish a mechanism for reporting and publication of artificial intelligence use cases and artificial intelligence vendors used by the departments and agencies; and

 

     (3)  Appropriate funds.

 

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Office of Enterprise Technology Services; and Hawaiʻi Green Growth.

 

     Your Committees received testimony in opposition to this measure from fifteen individuals.

 

     Your Committees received comments on this measure from the Office of Information Practices.

 

     Your Committees find that for many individuals, navigating government websites or data can be arduous or confusing, making it difficult to access publicly available information.  Your Committees further find that artificial intelligence tools, including a chatbot drawing from a centralized data pool, would improve the user experience of Hawaii residents navigating statewide services and data resources.  This measure will enhance public access to government services and information, enhance transparency and consistency across state agencies, and establish a framework for the responsible evaluation and use of artificial information tools within the state government.

 

     Your Committees acknowledge the concern raised in testimony by the Office of Information Practices that this measure, in its current form, requires all state agencies to deploy a chatbot by either utilizing the centralized system or linking a departmental chatbot to the State's data hub, without providing an option for agencies to opt out.  Your Committees agree that this requirement may be inappropriate for certain agencies whose functions involve providing legal or other specialized advice, and may compel the use of chatbot technology in circumstances where it is not suitable or consistent with an agency's mission.  Therefore, amendments to this measure are necessary to address this concern.

 

     Accordingly, your Committees have amended this measure by:

 

     (1)  Clarifying that only those state departments and agencies that elect to deploy a chatbot shall be required to utilize the artificial intelligence chatbot developed by the Chief Data Officer or link their departmental chatbot to the comprehensive Hawaii data hub to ensure consistency across state websites;

 

     (2)  Inserting an effective date of January 1, 2077, to encourage further discussion; and

 

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

 

     Your Committees note that, in advising the Chief Data Officer on the development and publication of an artificial intelligence chatbot pursuant to this measure, the Data Task Force shall incorporate the following foundational components in its recommendations:

 

     (1)  Requirements to ensure that any procured artificial intelligence system includes comprehensive contractual indemnification provisions to fully protect and hold harmless the State from any and all liabilities arising out of hallucinations, data breaches, misuse, or other errors or damages associated with the system's operation;

 

     (2)  The establishment of a mechanism to aggregate and anonymously collect data relating to hallucinations, breaches, and other system deficiencies, in combination with ongoing analyses and recommendations to improve system performance, security, and overall efficacy, with security and reliability as paramount considerations; and

 

     (3)  Collaboration with all state departments and agencies to develop and implement a harmonized, statewide definition and framework for personally identifiable information that aligns with prevailing standards across other states to ensure that these standards are consistently embedded in both the design and functional operation of any artificial intelligence or chatbot system deployed by the State.

 

     Your Committees further note that this measure, as amended, contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully requests that it consider inserting an appropriation amount of $2,000,000 to be expended by the Office of Information Practices to develop and publish the artificial intelligence chatbot, develop artificial intelligence governance tools, establish one full-time equivalent (1.0 FTE) Artificial Intelligence Engineer position and one full-time equivalent (1.0 FTE) Artificial Intelligence Scientist position, and for any necessary improvements, as determined, by the Chief Data Officer, for the State's open data portal at data.hawaii.gov.

 

     As affirmed by the records of votes of the members of your Committees on Labor and Technology and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2597, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2597, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Labor and Technology and Government Operations,

 

________________________________

ANGUS L.K. MCKELVEY, Chair

 

________________________________

BRANDON J.C. ELEFANTE, Chair