STAND. COM. REP. NO. 2388

Honolulu, Hawaii

RE: S.B. No. 3001

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 Commerce and Consumer Protection and Labor and Technology, to which was referred S.B. No. 3001 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 operators of conversational artificial intelligence services in the State to issue certain disclosures, develop protocols to prevent the production of suicidal ideations in account holders and users, and submit annual reports to the Department of Commerce and Consumer Affairs containing certain information;

(2) Establish protections for minor account holders of conversational artificial intelligence services;

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

(4) Establish statutory penalties.

Your Committees received testimony in support of this measure from the Department of Education, Department of Health, and Google.

Your Committees received testimony in opposition to this measure from Aidgentic LLC.

Your Committees received comments on this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs and Department of the Attorney General.

Your Committees find that as the use of artificial intelligence becomes more widespread, there is an increasing risk that it can be used to mislead or manipulate vulnerable individuals. This measure would establish an artificial intelligence regulatory framework for the State to ensure that the technology is created and used appropriately without compromising the safety and privacy of individuals, especially for minors.

Your Committees note the concerns raised in testimony that this measure, in its current form, may be subject to a constitutional challenge in that it could be construed as an attempt to regulate speech. Additionally, amendments to this measure are necessary to remove certain duplicative and vague provisions, refine definitions, and bring the measure into parity with other states that have adopted similar laws.

Accordingly, your Committees have amended this measure by:

(1) Clarifying that certain disclaimers be disclosed every three hours, rather than every hour, in a continuous conversational artificial intelligence service interaction;

(2) Deleting, as duplicative, certain language that would have required operators to maintain a protocol for preventing the production of suicidal ideation, suicide, or self-harm content to the user;

(3) Deleting language that would have required operators to disclose to a user that the service may not be suitable for minors and to notify users of the operator's duty of care and liability;

(4) Inserting language to require operators to institute reasonable measures to prevent the service from making any representation or statement that would lead a reasonable person to believe that they are interacting with a human where the user is seeking crisis intervention services for self-harm or suicide;

(5) Deleting language that would have required operators to institute reasonable measures to prevent the conversational artificial intelligence service from generating certain statements that would lead a reasonable person to believe that they are interacting with a human;

(6) Clarifying the tools operators shall offer to manage minor account holder's privacy and account settings;

(7) Inserting language to restrict the collection and use of certain data related to minors;

(8) Delaying by one year the commencement for certain operator reports to be submitted to the Department of Commerce and Consumer Affairs;

(9) Inserting language that clarifies that violations shall be considered an unfair or deceptive act or practice pursuant to chapter 480, Hawaii Revised Statutes;

    (10) Clarifying the definitions of "account holder" and "conversational artificial intelligence service" and inserting definitions for "crisis intervention", "sensitive data", and "sexually objectify";

    (11) Delaying the operative provisions of the measure to July 1, 2027;

    (12) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Labor and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3001, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3001, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Labor and Technology,

________________________________ BRANDON J.C. ELEFANTE, Chair

________________________________ JARRETT KEOHOKALOLE, Chair