STAND. COM. REP. NO. 1269-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3001

S.D. 2

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 S.B. No. 3001, S.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) Require operators of conversational artificial intelligence services in the State to issue certain disclosures to account holders and users;

(2) Require operators to develop protocols to prevent the production of suicidal ideations in account holders and users;

(3) Establish protections for account holders and users of conversational artificial intelligence services;

(4) Establish protections for minor account holders and users of conversational artificial intelligence services;

(5) Beginning January 1, 2028, require operators to submit annual reports to the Department of Commerce and Consumer Affairs containing certain information;

(6) Allow the Department of the Attorney General to bring a civil action against operators who violate certain requirements; and

(7) Establish that violations are to be considered unfair or deceptive acts or practices.

Your Committee received testimony in support of this measure from the Department of Education; State Health Planning and Development Agency; State Council on Mental Health; Office of Wellness and Resilience; Imua Alliance; Transparency Coalition; and three individuals. Your Committee received testimony in opposition to this measure from NetChoice. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Young People's Alliance; TechNet; CTIA; and one individual.

Your Committee finds that as artificial intelligence becomes more prevalent, the risk of certain tools being used to mislead or manipulate individuals may increase. Your Committee further finds that vulnerable groups, such as minors, are at a higher risk of being deceived by artificial intelligence tools that can mimic human emotions and provide misleading information. This measure seeks to protect individuals, particularly minors, who use conversational artificial intelligence services by requiring operators of these services to adopt certain disclosures, mental health protocols, and prohibitions on sexually explicit material.

Your Committee has amended this measure by:

(1) Removing certain requirements for operators related to personal data collection, minimization, and use;

(2) Amending the definition of "conversational artificial intelligence service"; 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 S.B. No. 3001, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3001, S.D. 2, 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