HB 1384: RELATING TO ARTIFICIAL INTELLIGENCE.

A BILL FOR AN ACT

RELATING TO ARTIFICIAL INTELLIGENCE.

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

     SECTION 1.  Chapter 27, Hawaii Revised Statutes, is amended by adding a new subpart to part VII to be appropriately designated and to read as follows:

"   .  HAWAII Artificial Intelligence Advisory Council.

     §27-     Purpose.  The purpose of the Hawaii artificial intelligence advisory council is to recommend an action plan, updated annually as necessary, and advise the legislature to guide awareness, education, policy, and usage of artificial intelligence in the State that aligns with the State's policies and goals and supports public employees in the efficient and effective delivery of public service.

     §27-     Definitions.  As used in this subpart:

     "Advisory council" means the Hawaii artificial intelligence advisory council.

     "Artificial intelligence" means models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.

     §27-   Hawaii artificial intelligence advisory council; establishment; members.  (a)  There is established within the department of accounting and general services, for administrative purposes, the Hawaii artificial intelligence advisory council.

     (b)  The members of the advisory council shall include the following individuals or their designees:

     (1)  The chief information officer, who shall serve as co‑chair;

     (2)  The director of finance, who shall serve as co-chair;

     (3)  The attorney general;

     (4)  The comptroller;

     (5)  The director of human resources development;

     (6)  The director of business, economic development, and tourism;

     (7)  The superintendent of education;

     (8)  The director of labor and industrial relations;

     (9)  The director of commerce and consumer affairs;

    (10)  The director of law enforcement;

    (11)  The chief data officer;

    (12)  The executive director and chief executive officer of the Hawaii technology development corporation;

    (13)  The executive director of the economic research organization at the university of Hawaii;

    (14)  Two members appointed by the president of the senate; and

    (15)  Two members appointed by the speaker of the house of representatives.

     (c)  The advisory council shall include seven additional members who shall be invited to participate by the governor, including members having an interest or experience in:

     (1)  Local government;

     (2)  Higher education;

     (3)  Workforce development;

     (4)  A business in the State that is likely to be impacted by artificial intelligence;

     (5)  Artificial intelligence development;

     (6)  Academics with a concentration or expertise in technology policy; and

     (7)  Law enforcement.

     (d)  If there is a vacancy on the advisory council, the co-chairs shall notify the respective appointing authority, who shall then appoint a person to fill the vacancy.

     (e)  The co-chairs shall convene all meetings, and the advisory council shall meet no less than four times each calendar year.  The co-chairs may establish subcommittees of the advisory council's members as necessary to ensure the council's effective and efficient operation.

     (f)  The members of the advisory council shall serve without compensation but shall be reimbursed for expenses, including reasonable travel expenses, necessary for the performance of their duties.

     §27-   Assistance.  All state departments and agencies shall cooperate with the advisory council in carrying out its duties and shall provide support or other assistance as reasonably requested.  The advisory council may consult with other persons and organizations with expertise related to artificial intelligence, government infrastructure, and economic development."

     SECTION 2.  Chapter 27, Hawaii Revised Statutes, is amended by designating sections 27-41 to 27-46 as subpart A and inserting a title before section 27-41 to read as follows:

"A.  Enterprise Technology Services; Broadband-Related Permits"

     SECTION 3.  Sections 27-41.1 and 27-43(a), Hawaii Revised Statutes, are amended by substituting the words "this subpart", or similar term, wherever the words "this part", or similar term, appears, as the context requires.

     SECTION 4.  (a)   As used in this Act:

     "Advisory council" means the Hawaii artificial intelligence advisory council established pursuant to section 1 of this Act.

     "Artificial intelligence" means models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.

     (b)  The advisory council shall develop an action plan addressing how to:

     (1)  Competitively position the State to ensure its residents capture the full economic benefits from artificial intelligence opportunities;

     (2)  Responsibly use artificial intelligence to improve the efficiency of state and local government services; and

     (3)  Ensure that artificial intelligence vendors in the State abide by certain standards of responsible use.

     (c)  The advisory council shall submit to the legislature a status report on the council's activities and progress no later than twenty days prior to the convening of the regular session of 2026.

     (d)  No later than December 31, 2026, the advisory council shall submit to the governor and legislature an interim report containing, at minimum, the following findings and recommendations:

     (1)  The current state of artificial intelligence and its likely impact on the State's labor market conditions;

     (2)  How the labor market impact might reshape the State's key industries, occupations, and foundational skillsets;

     (3)  Initiatives to stimulate economic growth, create jobs, and enhance talent development in the face of artificial intelligence-related changes;

     (4)  Recommended legal regulations or policy changes needed to ensure the responsible and ethical use of artificial intelligence in the State, while protecting the rights of Hawaii residents;

     (5)  Ways to encourage artificial intelligence innovation and entrepreneurship and strategies to support workers displaced by artificial intelligence;

     (6)  Proposed policy changes related to workforce development, educational systems, and research opportunities for colleges and universities in the State; and

     (7)  Recommended strategies to promote transparency and accountability for using artificial intelligence technologies, including accountability for artificial intelligence vendors, by measuring, monitoring, and reporting outcomes and progress.

     (e)  No later than December 31, 2027, the advisory council shall submit to the governor and legislature a final report and action plan that includes, at a minimum, the following:

     (1)  Principles and values to guide artificial intelligence use in state and county governments and among artificial intelligence vendors in the State;

     (2)  A governance framework with policies, procedures, and processes for the development, deployment, and use of artificial intelligence by state and county governments;

     (3)  A risk analysis of potential threats to the State's key infrastructure from artificial intelligence technologies;

     (4)  Recommendations for competitively positioning the State, including artificial intelligence vendors in the State, to ensure residents capture the full economic benefits from artificial intelligence opportunities; and

     (5)  Recommendations for responsibly using artificial intelligence to improve the efficiency of state and local government services.

     (f)  There is established within the department of accounting and general services      full-time equivalent (     FTE) permanent positions to assist the advisory council in carrying out its duties pursuant to this Act, including:

     (1)       full-time equivalent (     FTE) permanent management analyst position; and

     (2)       full-time equivalent (     FTE) permanent clerical or secretarial position.

     (g)  The advisory council may procure consultancy services pursuant to chapter 103D, Hawaii Revised Statutes, to assist with the research and development of the action plan and any other reasonable assistance as determined by a majority of the advisory council.

     SECTION 5.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of this Act, including:

     (1)  The hiring of      full-time equivalent (     FTE) permanent positions;

     (2)  The procurement of consultancy services; and

     (3)  Administrative and operating costs of the advisory council, including reasonable travel expenses and office supplies.

     The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

     SECTION 6.  This Act shall take effect on July 1, 3000, and shall be repealed on December 31, 2027.

Report Title:

Artificial Intelligence; Advisory Council; Economic Development; Workforce; Labor; Education; Policy; Action Plan; Report; Appropriation; Positions

Description:

Establishes the Hawaii Artificial Intelligence Advisory Council.  Requires an action plan and reports to the Governor and Legislature by certain dates.  Establishes positions.  Authorizes the hiring of consultants to assist the advisory council.  Appropriates funds.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

Relating to Artificial Intelligence.

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

     SECTION 1.  Chapter 27, Hawaii Revised Statutes, is amended by adding a new subpart to part VII to be appropriately designated and to read as follows:

"SUBPart   .  HAWAII Artificial Intelligence Advisory Council.

     §27-     Purpose.  The purpose of the Hawaii artificial intelligence advisory council is to recommend an action plan, updated annually as necessary, and advise the legislature to guide awareness, education, policy, and usage of artificial intelligence in the State that aligns with the State's policies and goals and that supports public employees in the efficient and effective delivery of public service.

     §27-     Definitions.  As used in this subpart:

     "Advisory council" means the Hawaii artificial intelligence advisory council.

     "Artificial intelligence" means models and systems capable of performing functions generally associated with human intelligence, including reasoning and learning.

     §27-     Hawaii artificial intelligence advisory council; establishment; members.  (a)  There is established within the department of accounting and general services, for administrative purposes, the Hawaii artificial intelligence advisory council.

     (b)  The members of the advisory council shall include the following individuals or their designees:

     (1)  The chief information officer, who shall serve as co‑chair;

     (2)  The director of finance, who shall serve as co-chair,

     (3)  The attorney general;

     (4)  The comptroller;

     (5)  The director of human resources development;

     (6)  The director of business, economic development, and tourism;

     (7)  The superintendent of education;

     (8)  The director of labor and industrial relations;

     (9)  The director of commerce and consumer affairs;

    (10)  The director of law enforcement;

    (11)  The chief data officer;

    (12)  The executive director and chief executive officer of the Hawaii technology development corporation;

    (13)  The executive director of the economic research organization at the university of Hawaii;

    (14)  Seven members who shall be appointed or invited to participate by the governor, including members having an interest or experience in:

          (A)  Local government;

          (B)  Higher education;

          (C)  Workforce development;

          (D)  A business in this State that is likely to be impacted by artificial intelligence;

          (E)  An artificial intelligence developer or expert;

          (F)  A representative of academics with a concentration or expertise in technology policy; and

          (G)  A representative of law enforcement;

    (15)  Two members appointed by the president of the senate; and

    (16)  Two members appointed by the speaker of the house of representatives.

     (c)  If a vacancy on the advisory council, the co-chairs shall notify the respective appointing authority, who shall then appoint a person to fill the vacancy.

     (d)  The co-chairs shall call all meetings, and the advisory council shall meet no less than four times each calendar year.  The co-chairs may establish subcommittees of the advisory council's members as necessary to ensure the council's effective and efficient operation.

     (e)  The members of the advisory council shall serve without compensation but shall be reimbursed for expenses, including reasonable travel expenses, necessary for the performance of their duties.

     §27-     Assistance.  All state departments and agencies shall cooperate with the advisory council in carrying out its duties and shall provide support or other assistance as reasonably requested.  The advisory council may consult with other persons and organizations with expertise related to artificial intelligence, government infrastructure, and economic development."

     SECTION 2.  (a)  The advisory council shall develop an action plan addressing how to:

     (1)  Competitively position the State to ensure its residents capture the full economic benefits from artificial intelligence opportunities; and

     (2)  Responsibly use artificial intelligence to improve the efficiency of state and local government services.

     (b)  The advisory council shall submit to the legislature a status report on the council's activities and progress no later than twenty days prior to the convening of the regular session of 2026.

     (c)  No later than December 31, 2026, the advisory council shall submit to the governor and legislature a report containing, at minimum, the following findings and recommendations:

     (1)  The current state of artificial intelligence and its likely impact on the State's labor market conditions;

     (2)  How the labor market impact might reshape the State's key industries, occupations, and foundational skillsets;

     (3)  Initiatives to stimulate economic growth, create jobs, and enhance talent development in the face of artificial intelligence-related changes;

     (4)  Recommended legal regulations or policy changes needed to ensure the responsible and ethical use of artificial intelligence in the State, while protecting the rights of Hawaii citizens;

     (5)  Ways to encourage artificial intelligence innovation and entrepreneurship and strategies to support workers displaced by artificial intelligence;

     (6)  Proposed policy changes related to workforce development, educational systems, and research opportunities for colleges and universities in the State;

     (7)  An analysis of the goals, benefits, potential uses, and limitations of artificial intelligence systems; and

     (8)  Recommended strategies to promote transparency and accountability for using artificial intelligence technologies by measuring, monitoring, and reporting outcomes and progress.

     (d)  No later than December 31, 2027, the advisory council shall submit to the governor and legislature a final report and action plan that includes, at a minimum, the following:

     (1)  Principles and values to guide artificial intelligence use in the State and county governments;

     (2)  A governance framework with policies, procedures, and processes for the development, deployment, and use of artificial intelligence by the State and county governments;

     (3)  An evaluation of potential beneficial use cases for the deployment of artificial intelligence tools and strategies by the State to improve government services;

     (4)  A risk analysis of potential threats to the State's key infrastructure from artificial intelligence technologies;

     (5)  Recommendations for supporting state and county government employees through the artificial intelligence transition;

     (6)  Recommendations for competitively positioning the State to ensure its residents capture the full economic benefits from artificial intelligence opportunities; and

     (7)  Recommendations for responsibly using artificial intelligence to improve the efficiency of state and local government services.

     (e)  There is established within the department of accounting and general services two permanent full-time equivalent (2.0 FTE) positions to assist the advisory council in carrying out its duties pursuant to this Act, including:

     (1)  One permanent full-time equivalent (1.0 FTE) management analyst position; and

     (2)  One permanent full-time equivalent (1.0 FTE) clerical or secretarial position.

     (f)  The advisory council may procure consultancy services pursuant to chapter 103D, Hawaii Revised Statutes, to assist with the research and development of the action plan and any other reasonable assistance as determined by a majority of the advisory council.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of this Act, including:

     (1)  The hiring of two permanent full-time equivalent (2.0 FTE) positions;

     (2)  The procurement of consultancy services; and

     (3)  Administrative and operating costs of the advisory council, including reasonable travel expenses and office supplies.

     The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2025, and shall be repealed on December 31, 2027.

Report Title:

Artificial Intelligence; Advisory Council; Economic Development; Workforce; Labor; Education; Policy; Action Plan; Report; Appropriation

Description:

Establishes the Hawaii Artificial Intelligence Advisory Council.  Requires an action plan and reports to the Governor and Legislature by certain dates.  Establishes 2 permanent full-time equivalent (2.0 FTE) positions.  Authorizes the hiring of consultants to assist the advisory council.  Appropriates moneys.

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

STAND. COM. REP. NO.  299

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1384

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Economic Development & Technology, to which was referred H.B. No. 1384 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to establish the Hawaii Artificial Intelligence Advisory Council.

     Your Committee received testimony in support of this measure from the Office of Enterprise Technology Services and one individual.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from one individual.

     Your Committee finds that the rapid transition to artificial intelligence necessitates adequate policies and practices to ensure that the State captures the full economic benefits of this technology while promoting responsible use.  This measure addresses this need by establishing the Hawaii Artificial Intelligence Advisory Council.

     Your Committee has amended this measure by:

     (1)  Adding provisions to ensure that the Hawaii Artificial Intelligence Advisory Council addresses responsible use and accountability for artificial intelligence vendors;

     (2)  Removing the requirement that the Advisory Council's interim report include an analysis of certain aspects of artificial intelligence systems;

     (3)  Removing the requirement that the Advisory Council's final report include an evaluation of potential beneficial use cases and recommendations for supporting government employees in the transition to artificial intelligence;

     (4)  Changing the appropriation to an unspecified amount;

     (5)  Changing the number of positions established to an unspecified number;

     (6)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $500,000 and positions counts of one full-time equivalent (1.0 FTE) permanent management analyst position and one full-time equivalent (1.0 FTE) permanent clerical or secretarial position.

     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 H.B. No. 1384, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1384, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,