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HB639 • 2026

RELATING TO ARTIFICIAL INTELLIGENCE.

RELATING TO ARTIFICIAL INTELLIGENCE.

Technology
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
LA CHICA, GRANDINETTI, IWAMOTO, LOWEN, MARTEN, PERRUSO, PIERICK, TODD, WARD
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on enforcement mechanisms or oversight bodies.

Rules for Artificial Intelligence Chatbots

This bill requires businesses to inform consumers when they are interacting with an AI chatbot, not a real person, and sets penalties for non-compliance.

What This Bill Does

  • Requires corporations, organizations, or individuals engaging in commercial transactions to clearly notify consumers if the consumer is interacting with an artificial intelligence (AI) chatbot or other technology capable of mimicking human behavior.
  • Makes it illegal for developers who sell, offer for sale, advertise, or make available AI chatbots to do so without disclosing that their products use AI.
  • Allows individuals harmed by a violation of these rules to sue and recover damages, including attorney fees and costs.
  • Sets penalties for breaking the rules, with fines up to $5 million per violation.

Who It Names or Affects

  • Businesses engaging in commercial transactions or trade practices
  • Developers who sell AI chatbots

Terms To Know

Artificial Intelligence Chatbot
A software program designed to have conversations with users using natural language, mimicking human interaction.
Unfair or Deceptive Practices
Actions that mislead consumers about the nature of their interactions with businesses.

Limits and Unknowns

  • The bill does not specify what constitutes a 'clear and conspicuous' notification.
  • It is unclear how enforcement will be carried out and who will oversee compliance.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

1

Hawaii published version HD1

Plain English: This amendment requires companies and individuals to inform consumers when they are interacting with a chatbot, and mandates developers of chatbots to disclose that their products use artificial intelligence and can mimic human behavior.

  • Corporations, organizations, or individuals engaging in commercial transactions must inform consumers if they are communicating with a chatbot or similar technology.
  • Developers of chatbots must clearly disclose that their chatbots use AI and can mimic human interaction when selling, advertising, or offering the chatbots to users.
  • The amendment text does not specify what constitutes 'clear and conspicuous' disclosure for businesses and developers.
  • It is unclear how small businesses will be notified of these requirements and given a reasonable opportunity to comply.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-02-05 H

    Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).

  3. 2025-02-05 H

    Reported from ECD (Stand. Com. Rep. No. 167) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

  4. 2025-01-31 H

    The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Templo.

  5. 2025-01-28 H

    Bill scheduled to be heard by ECD on Friday, 01-31-25 10:00AM in House conference room 423 VIA VIDEOCONFERENCE.

  6. 2025-01-21 H

    Referred to ECD, CPC, FIN, referral sheet 2

  7. 2025-01-21 H

    Introduced and Pass First Reading.

  8. 2025-01-17 H

    Pending introduction.

Official Summary Text

RELATING TO ARTIFICIAL INTELLIGENCE.
Artificial Intelligence; Chatbots; Unfair or Deceptive Practices; Developer; Penalties; Exemptions
Requires corporations, organizations, or individuals engaging to commercial transactions or trade practices to clearly and conspicuously notify consumers when the consumer is interacting with an artificial intelligence chatbot or other technology capable of mimicking human behaviors, with certain exemptions. Requires developers that sell, offer for sale, advertise, or make available artificial intelligence chatbots to disclose that their chatbots use artificial intelligence. Authorizes private rights of action. Establishes statutory penalties. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text
HB639

HOUSE OF REPRESENTATIVES

H.B. NO.

639

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to artificial intelligence
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
The legislature finds that modern
chatbots are now advanced enough to engage with users in highly human-like
conversations, making it difficult for users to determine if they are speaking
with a chatbot or a real person.
�
Many
chatbots are also designed to mimic human behaviors and conversations, and can
be used to effectively influence people in a variety of ways, from advertising
to spreading misinformation, and can even manipulate users into revealing
personal information such as their social security or bank account
numbers.
�
Additionally, chatbots are
intended to learn and adapt through their interactions with users.
�
As chatbots gather information from users,
they become better able to help their developers achieve specific objectives,
such as keeping users engaged or encouraging them to make a purchase.

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The
legislature finds that there are few regulations requiring that companies or
individuals make users aware that they are interacting with a chatbot.
�
This lack of transparency means that
individuals may mistakenly believe they are conversing with a licensed professional,
such as a doctor, financial advisor, or therapist, when they are actually
speaking with a chatbot.
�
The legislature
believes that consumers have a right to know when they are engaging with a
chatbot or other technology that mimics human interaction.

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Accordingly,
the purpose of this Act is to require corporations, organizations, or
individuals engaging in commercial transactions to inform consumers when the
consumers are communicating or otherwise interacting with a chatbot or other
technology that mimics human interaction.

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SECTION
2.
�
Chapter 481B, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:

"
Part .

artificial intelligence chatbots

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�481B-
�
Definitions.
�

As used in this part:

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"Artificial
intelligence chatbot" or "chatbot" means a software application,
web interface, or computer program designed to have textual or spoken
conversations that uses a generative artificial intelligence system capable of
maintaining a conversation with a user in a manner that uses natural language
and simulates the way a natural person would behave as a conversational
partner.

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"Class
action" includes the definition as provided in rule 23 of the Hawaii rules
of civil procedure.

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"Consumer"
means a natural person who, primarily for personal, family, or household
purposes, purchase, attempts to purchase, or is solicited to purchase goods or
services or who commits money, property, or services as a personal investment.

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"De
facto class action" has the same meaning as in section 480-1.

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�481B-
�
Disclosure required.
�
(a)
�
No
corporation, organization, or individual engaging in a commercial transaction
or trade practice of any kind shall use an artificial intelligence chatbot or
other technology that is capable of mimicking human behavior and that engages
in a textual or spoken conversation with a consumer in a manner that may
mislead or deceive a reasonable person to believe they are engaging with a
natural person without first disclosing to the consumer in a clear and
conspicuous fashion that the consumer is interacting with a chatbot or other
form of technology capable of mimicking human behavior.

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(b)
�
Any violation of this section shall be
considered an unfair or deceptive act or practice under this chapter.

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�481B-
�
Suits by persons injured; amount of recovery;
injunctions.
�
(a)
�
Except as provided by subsection (b), any
person who is injured by a violation of this part may:

����
(1)
�
Sue for damages sustained by the person, and,
if the judgment is for the plaintiff, the plaintiff shall be awarded a sum no
less than $1,000 or threefold damages sustained by the plaintiff, whichever sum
is greater, and reasonable attorneys' fees together with the costs of the suit;
and

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(2)
�
Bring proceedings to enjoin the unlawful
practices, and, if the decree is for the plaintiff, the plaintiff shall be
awarded reasonable attorneys' fees together with the costs of the suit.

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(b)
�
The remedies provided in subsection (a) shall
be applied in class action and de facto class action lawsuits or proceedings;
provided that:

����
(1)
�
The minimum $1,000 recovery provided in
subsection (a) shall not apply in a class action or de facto class action
lawsuit;

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(2)
�
That portion of threefold damages in excess of
compensatory damages shall be apportioned and allocated by the court in its
exercise of discretion so as to promote effective enforcement of this part and
deterrence from violation of its provisions; and

����
(3)
�
Damages awarded shall not exceed $10,000,000.

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(c)
�
The remedies provided in this section are
cumulative and may be brought in one action.

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(d)
�
In addition to any other remedy provided by
law, the attorney general may file a petition for injunctive relief against any
corporation, organization, or individual who violates this part.

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�481B-
�
Penalties.
�

Any corporation, organization, or individual found to be in
violation of this part shall be subject to a civil penalty of no more than
$5,000,000."

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SECTION 3.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Artificial
Intelligence; Chatbots; Unfair or Deceptive Practices; Penalties

Description:

Requires
corporations, organizations, or individuals engaging to commercial transactions
or trade practices to clearly and conspicuously notify consumers when the
consumer is interacting with an artificial intelligence chatbot or other
technology capable of mimicking human behaviors.
�
Authorizes private rights of action.
�
Establishes statutory penalties.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.