RELATING TO ARTIFICIAL INTELLIGENCE.

SB2923

THE SENATE

S.B. NO.

2923

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Artificial Intelligence
.

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

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SECTION 1.
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The Hawaii
Revised Statutes is amended by adding a new chapter to be appropriately designated
and to read as follows:

"
Chapter

Artificial
Intelligence Safety and Regulation

PART
I.
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GEneral Provisions

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Short title.
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This chapter shall be known and may be cited
as the Hawaii Artificial Intelligence Safety and Regulation Act.

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Legislative intent.
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Artificial intelligence technologies are
rapidly advancing and have the potential to significantly impact the economy,
society, and individual rights.
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To
protect the safety, privacy, and fundamental rights of Hawaii residents, it is
essential to ensure that the development, deployment, and use of artificial
intelligence technologies and products in the State are undertaken in a
responsible and transparent manner.

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Several open letters published in 2023 by
academics, advocates, and industry leaders on the risks posed by advanced
artificial intelligence have warned that the potential existential risks from
artificial intelligence should be a global priority alongside other
societal-scale risks, including pandemics and nuclear war.
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Industry experts have also raised concerns
regarding nonexistential risks of artificial intelligence, including systematic
bias, misinformation, malicious use, cyber-attacks, and weaponization, which
are also important and must be addressed urgently.

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In addressing the potential risks
associated with artificial intelligence technologies, it is crucial that the
State adhere to the precautionary principle, which requires the government to
take preventive action in the face of uncertainty; shifts the burden of proof
to those who want to undertake an innovation to show that it does not cause
harm; and holds that regulation is required whenever an activity creates a
substantial possible risk to health, safety, or the environment, even if the
supporting evidence is speculative.
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In
the context of artificial intelligence and products, it is essential to strike
a balance between fostering innovation and safeguarding the well-being of the
State's residents by adopting and enforcing proactive and precautionary
regulation to prevent potentially severe societal-scale risks and harms,
require affirmative proof of safety by artificial intelligence developers, and
prioritize public welfare over private gain.

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The purpose of this chapter is to establish
the office of artificial intelligence safety and regulation within the
department of commerce and consumer affairs to regulate the development,
deployment, and use of artificial intelligence technologies in the State in
accordance with the precautionary principle, while encouraging innovation and
advancement of artificial intelligence development.

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Definitions.
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As used in this chapter:

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"Artificial intelligence" has the
same meaning as defined in title 15 United States Code section 9401.

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"Department" means the department
of commerce and consumer affairs.

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"Director" means the director of commerce
and consumer affairs.

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"Executive director" means the
executive director of the office of artificial intelligence safety and regulation.

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"Office" means the office of
artificial intelligence safety and regulation.

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"Precautionary principle" means the
principle that:

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(1)
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Requires
the government to take preventive action in the face of uncertainty;

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(2)
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Shifts
the burden of proof to those who want to undertake an innovation to show that
it does not cause harm; and

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(3)
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Holds
that regulation is required whenever an activity creates a substantial possible
risk to health, safety, or the environment, even if the supporting evidence is
speculative.

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Deployment of artificial intelligence
products; prior written approval required.
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No person shall deploy artificial intelligence products in the State without
submitting to the office affirmative proof establishing the product's safety.

PART
II.
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Office of artificial intelligence
safety and regulation

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Office of artificial intelligence safety and regulation;
establishment; executive director; personnel.
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There is established within the department of
commerce and consumer affairs for administrative purposes only, the office of
artificial intelligence safety and regulation to regulate the development,
deployment, and use of artificial intelligence technologies in the State.
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The office shall be headed by an executive
director who shall be appointed by the governor, with the advice and consent of
the senate, to serve for a term of four years.
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The executive director shall be exempt from chapter 76 and may employ
staff as may be necessary for the purposes of this chapter without regard to
chapter 76.

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Salary and duties of executive director;
benefits.
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Notwithstanding section
-13, the governor may define the executive director's powers
and duties and fix the executive director's compensation.
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The executive director shall be entitled to
participate in any employee benefit plan.

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General functions, powers, and duties.
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The executive director shall have the
following functions, powers, and duties, guided by the precautionary principle:

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(1)
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Identify
and assess existing and potential risks and uncertainties associated with the
development, deployment, and use of artificial intelligence systems and
applications in the State;

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(2)
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Develop,
implement, and enforce regulations regarding the responsible development,
deployment, and use of artificial intelligence technologies to mitigate risks
in the State with particular focus on public safety and protecting the privacy
and individual rights of users of artificial intelligence products in the State;

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(3)
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Establish
standards and guidelines for data privacy, security, and transparency in
artificial intelligence systems and ensure that developers, deployers, and
users of artificial intelligence systems and applications in the State adhere
to the provisions of this chapter and rules adopted pursuant to this chapter;

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(4)
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Conduct
periodic risk assessments of artificial intelligence systems and applications to
identify existing or potential hazards, vulnerabilities, or adverse effects,
and develop and implement measures to mitigate the hazards, vulnerabilities, or
adverse effects, taking into account potential adverse effects that may arise
from artificial intelligence technologies and requiring affirmative proof of
safety by artificial intelligence developers before products are deployed;

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(5)
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Provide
guidance and education to artificial intelligence developers, deployers, and
users of artificial intelligence technologies and the public on the best
practices, potential risks, and responsible adoption of artificial intelligence
technologies and encourage the application of the precautionary principle in
the design and deployment of artificial intelligence products to safeguard the
well-being of the communities;

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(6)
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Establish
and maintain a reporting system for the public to raise concerns, report
incidents, and seek information related to artificial intelligence systems and
their impact on society.
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The executive
director shall be responsive to the reports, take necessary action to protect
public safety, and act in the best interest of the public;

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(7)
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Collaborate
with relevant public and private agencies, academic institutions, and industry
stakeholders, as appropriate, to promote research, innovation, and advancement
of artificial intelligence technologies, while integrating precautionary
measures to effectively address potential risks;

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(8)
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Conduct
investigations and audits to ensure compliance with this chapter; and

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(9)
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Adopt,
amend, or repeal rules in accordance with chapter 91, necessary to carry out
the purposes of this chapter.

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Artificial intelligence regulation;
precautionary principle; risk-based approach.
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(a)
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In
regulating the development, deployment, and use of artificial intelligence
technologies in the State, the office shall:

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(1)
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Adhere
to the precautionary principle, emphasizing the proactive identification and
management of risks associated with artificial intelligence technologies and
the need for artificial intelligence developers to provide affirmative proof of
safety of their products before deployment; and

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(2)
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Take
a risk-based approach considering factors, including the potential for harm,
criticality of the application, and level of autonomy.

A developer
of an artificial intelligence product deemed by the office to have a higher
potential risk shall have a higher burden of proof to demonstrate the safety of
the product before deployment.

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(b)
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As part of the risk-based approach, the office shall:

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(1)
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Strategically
allocate its resources into its efforts to address high-priority artificial
intelligence applications that pose significant risks to human health, safety,
or fundamental rights; and

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(2)
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Establish,
in accordance with the precautionary principle, a framework for assessing and
categorizing artificial intelligence systems based on risk levels, which shall
enable the office to prioritize regulatory efforts on high-risk artificial
intelligence applications and products to prevent and mitigate potential harm
to public safety and individual rights.

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(c)
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In applying the risk-based approach, the office shall be transparent and
cooperate with stakeholders from diverse backgrounds, including experts in
artificial intelligence technology, ethicists, business groups, indigenous
groups, the nonprofit sector, health care professionals, academics, and members
of the public, to ensure that decisions regarding risk assessment and
regulation are informed, well-balanced, and considerate of the potential
implications on society.

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(d)
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The office shall regularly review and update its risk assessment
framework to keep pace with evolving artificial intelligence technologies and
potential risks and effectively address any emerging challenges through
continuous evaluation and improvement.

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(e)
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The office shall maintain a balance between innovation of artificial
intelligence technologies and public safety by fostering and promoting the
responsible innovation and use of artificial intelligence technologies, and
cooperating with counties, other state agencies, federal agencies,
international regulators, artificial intelligence developers, industry
stakeholders, and others, as appropriate, to encourage the adoption of best
practices and precautionary measures in artificial intelligence product regulation
and development.

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Annual report.

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The executive director shall prepare and
submit an annual report describing the activities of the office to the
director, governor, and legislature, no later than twenty days prior to the
convening of each regular session.

PART
III.
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Enforcement AND PENALTIES

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Penalties.
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Any person who violates any provision of this
chapter or any rule adopted by the office pursuant to this chapter shall be
fined not more than
$ for each separate
offense.
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Each day of each violation
shall constitute a separate offense.
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Any
action taken to impose or collect the penalty provided for in this section shall
be considered a civil action.

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Enforcement authority.
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The attorney general or the executive
director of the office of consumer protection is authorized to investigate
reported or suspected violations of this chapter and any rules adopted pursuant
to this chapter, and to enforce the laws and rules by bringing civil actions or
proceedings."

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SECTION
2
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Section 26-9, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:

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"(e)
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Notwithstanding any provision to the contrary, the employment,
appointment, promotion, transfer, demotion, discharge, and job descriptions of
all officers and employees under the administrative control of this department
shall be determined by the director of commerce and consumer affairs subject
only to applicable personnel laws[
.
]
; provided that, to the extent it
conflicts with sections -11 and -12, this
subsection shall not apply to the officers and employees of the office of
artificial intelligence safety and regulation established under section
-11.
"

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SECTION 3.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2026-2027 for
the
establishment of the office of artificial intelligence safety and regulation
.

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The sum appropriated shall be expended by
the
department of commerce and consumer affairs
for the
purposes of this Act.

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SECTION 4.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 5.
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This Act shall take effect on July 1, 2026.

INTRODUCED
BY:

_____________________________

Report Title:

DCCA;
Office of Artificial Intelligence Safety and Regulation; Establishment;
Appropriation

Description:

Establishes
the Office of Artificial Intelligence Safety and Regulation within the Department
of Commerce and Consumer Affairs to regulate the development, deployment, and
use of artificial intelligence technologies in the State.
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Prohibits the deployment of artificial
intelligence products in the State unless affirmative proof establishing the
product's safety is submitted to the Office.
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Appropriates funds.

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not legislation or evidence of legislative intent.