In one paragraph
Hawaii's SB 2967 (2026) would have added a part to HRS chapter 480 regulating businesses ('deployers') that use AI systems or automated decision tools with consumers. They would have to disclose AI interactions, give notice and explanation, correction, appeal and human review for AI-influenced consequential decisions, keep risk programs, do annual impact assessments and report incidents within 90 days. A violation would be an unfair or deceptive act. The Senate committee on LBT deferred it February 11, 2026; it died.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill did not pass. It would have required businesses using AI in consumer decisions to disclose, explain, assess and report.
Key provisions
- Deployers using AI in consumer-facing communications would have to clearly disclose, at the start and at reasonable intervals, that the consumer is dealing with AI (480-B)
- For high-risk AI used in a consequential decision (housing, credit, insurance, employment, education, health care, legal services), plain-language notice, the main contributing factors and how to seek correction and human review (480-C, 480-D)
- Deployers and vendors would have to use reasonable care to protect consumers from known or reasonably foreseeable material risks; deployers would need a written risk management program and an impact assessment of high-risk systems at least annually, with records kept at least five years after retirement or material modification (480-F)
- Deployers would have to notify the executive director of the office of consumer protection and the attorney general within ninety days of discovering a material violation affecting a class of consumers, or that a high-risk system caused or materially contributed to algorithmic discrimination or other material harm (480-H)
- Waivers of the Part's obligations would be void; a violation would be an unfair or deceptive act under 480-2; no fines set in the bill (480-E, 480-I)
- Would have taken effect upon approval; deferred by LBT February 11, 2026
Latest legislative action
Feb 11, 2026. The committee on LBT deferred the measure.
Sponsors (showing 5 of 15)
| Name | Role |
|---|---|
| CHANG | Primary |
| FEVELLA | Primary |
| GABBARD | Primary |
| HASHIMOTO | Primary |
| INOUYE | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error