WHAT THIS BILL REGULATES · 8 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
§480-A Definitions. As used in this part: "Adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A. "Algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the use of an artificial intelligence system or automated decision tool that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law.HRS § 480-A" means the use of an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" or "AI system" means a machine-based system that, for a given set of objectives, generates outputs such as predictions, recommendations, content, classifications, scores, or similar outputs that influence decisions or behaviors in real or virtual environments, and that operates with varying levels of autonomy.HRS § 480-A or automated decision toolAutomated decision tool"Automated decision tool" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influence a consequential decision.HRS § 480-A that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law. "Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" or "AI system" means a machine-based system that, for a given set of objectives, generates outputs such as predictions, recommendations, content, classifications, scores, or similar outputs that influence decisions or behaviors in real or virtual environments, and that operates with varying levels of autonomy.HRS § 480-A" or "AI system" means a machine-based system that, for a given set of objectives, generates outputs such as predictions, recommendations, content, classifications, scores, or similar outputs that influence decisions or behaviors in real or virtual environments, and that operates with varying levels of autonomy. "Automated decision toolAutomated decision tool"Automated decision tool" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influence a consequential decision.HRS § 480-A" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A. "Consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A" means a decision that determines or materially influencesMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A due to a comparable risk of material financial, reputational, or legal harm. "DeployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A" means a person that uses, operates, or makes available an AI system or automated decision toolAutomated decision tool"Automated decision tool" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influence a consequential decision.HRS § 480-A in the course of business in the State, including use through a vendorVendor"Vendor" means a person that provides, licenses, hosts, maintains, or materially modifies an AI system or automated decision tool on behalf of a deployer.HRS § 480-A, when the system or tool is used to interact with a consumer or to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A. "Executive directorExecutive director"Executive director" means the executive director of the office of consumer protection.HRS § 480-A" means the executive director of the office of consumer protection. "Generative artificial intelligence serviceGenerative artificial intelligence service"Generative artificial intelligence service" means an AI system that generates, in response to prompts or other inputs, content such as text, images, audio, video, computer code, or other synthetic output.HRS § 480-A" means an AI system that generates, in response to prompts or other inputs, content such as text, images, audio, video, computer code, or other synthetic output. "High-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A" means an AI system or automated decision toolAutomated decision tool"Automated decision tool" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influence a consequential decision.HRS § 480-A that is used to make, or is a substantial factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A. "Materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag. "VendorVendor"Vendor" means a person that provides, licenses, hosts, maintains, or materially modifies an AI system or automated decision tool on behalf of a deployer.HRS § 480-A" means a person that provides, licenses, hosts, maintains, or materially modifies an AI system or automated decision toolAutomated decision tool"Automated decision tool" means a computational process, including one derived from machine learning, statistics, data analytics, or artificial intelligence, that issues an output used to make, inform, or materially influence a consequential decision.HRS § 480-A on behalf of a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A.
This section establishes the definitional framework for the new AI consumer protection part. Key terms include deployer (the entity that makes an AI system available to consumers or uses it in consequential decisions), vendor (upstream provider acting on behalf of a deployer), consequential decision (covering housing, credit, insurance, employment, education, healthcare, legal services, and any additional category designated by rule), and high-risk AI system (any AI system or automated decision tool that is used to make or is a substantial factor in making a consequential decision). The definition of algorithmic discrimination adopts an unjustified-differential-treatment-or-impact standard tied to state or federal protected characteristics.
(a) 1 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A that uses an AI system, including a generative artificial intelligence serviceGenerative artificial intelligence service"Generative artificial intelligence service" means an AI system that generates, in response to prompts or other inputs, content such as text, images, audio, video, computer code, or other synthetic output.HRS § 480-A, to interact with a consumer in a consumer-facing communication shall provide a clear and conspicuous disclosure, at the beginning of the interaction and at reasonable intervals as necessary to avoid deception, that the consumer is interacting with an AI system.
(b) 1 Subsection (a) shall not be construed to prohibit the use of a live human agent; provided that when a human agent joins or assumes control of the interaction, the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall not misrepresent the identity of the agent.
(c) 1 The disclosure required by this section may be provided by text, audio, or another method reasonably calculated to be understood by the consumer given the communication channel.
This section requires deployers to disclose to consumers that they are interacting with an AI system at the beginning of any consumer-facing communication and at reasonable intervals as necessary to avoid deception. The obligation applies broadly to any AI system used in consumer-facing interactions, including generative AI services. The section provides flexibility on disclosure format — text, audio, or other method reasonably calculated to be understood — and clarifies that a live human agent may join or assume control of an interaction without triggering a violation, so long as the agent's identity is not misrepresented.
(a)(1)–(3) 2 If a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A uses a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A, the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall provide the consumer, in plain language and in a timely manner: (1) Notice that a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A was used to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A the consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A; (2) A description of the type of information used by the system and the primary factors that materially contributed to the decision; and (3) Information describing how the consumer may request correction of inaccurate information, submit additional information, seek reconsideration, and obtain human review under section 480-D.
(b)(1)–(2) 2 The notice required by this section shall be provided: (1) At or before the time of communicating an adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A; or (2) If no adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A is communicated, upon request by the consumer within a reasonable period after the decision.
(c) 2 This section shall not be construed to require a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A to disclose proprietary source code or trade secrets; provided that the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall provide a meaningful explanation sufficient for a reasonable consumer to understand the basis for the decision and the process to contest it.
This section imposes decision-specific disclosure obligations on deployers whenever a high-risk AI system is used to make, inform, or materially influence a consequential decision. The deployer must provide plain-language notice that AI was used, describe the type of information and principal factors contributing to the decision, and inform the consumer of their rights to correction, reconsideration, and human review under § 480-D. Notice must be provided at or before communicating an adverse action, or upon consumer request within a reasonable period. The section includes a trade-secret carve-out but still requires a meaningful explanation.
(a)(1)–(3) 3 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A that uses a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A a consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A shall implement a reasonable process by which a consumer may: (1) Request correction of inaccurate personal information used in the decision; (2) Submit relevant information for reconsideration; and (3) Obtain a human review of an adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A.
(b) 3 Human review under this section shall be performed by an individual with authority to overturn the adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A and with training reasonably related to the subject matter of the consequential decisionConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A.
(c)(1)–(3) 4 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall provide a written response to a consumer request under this section within a reasonable period, and shall include: (1) The outcome of the reconsideration; (2) If the adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A is upheld, an explanation of the basis for the determination in plain language; and (3) Any additional steps available to the consumer through internal appeal, customer dispute channels, or applicable external rights.
(d)(1)–(2) 3 This section shall not be construed to require a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A to provide human review when doing so would: (1) Prevent the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A from complying with state or federal law; or (2) Compromise the security or integrity of systems or fraud-prevention processes; provided that the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall document the basis for invoking this subsection and shall provide the consumer with notice of the limitation and an alternative dispute channel reasonably available to the consumer.
This section establishes a suite of consumer recourse rights when high-risk AI systems are used in consequential decisions. Deployers must implement a reasonable process for consumers to correct inaccurate personal information, submit additional information for reconsideration, and obtain human review of adverse actions. Human reviewers must have authority to overturn the decision and training relevant to the subject matter. Deployers must provide written responses that include the outcome, explanation if the adverse action is upheld, and information about further appeal channels. Narrow exceptions allow deployers to decline human review when it would conflict with law or compromise security, but even then the deployer must document the basis, notify the consumer, and provide an alternative dispute channel.
(a)(1)–(4) 5 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A that provides a consumer-facing AI interaction shall make available, prior to or at the time of interaction, a clear and conspicuous AI user agreement that describes, in plain language: (1) The nature of the AI interaction and known material limitations of the AI system, including the risk of inaccurate or fabricated output; (2) The categories of data collected from the consumer during the interaction and how the data will be used, retained, and shared; (3) How a consumer may reach a human representative, submit a complaint, and dispute a charge, decision, or other outcome tied to the AI interaction; and (4) Any material ways the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A uses the AI interaction to make, inform, or materially influenceMaterially influence"Materially influence" means that an output is used in a manner that could change the outcome of a decision, the terms of a decision, or the process used to reach a decision, including use as a gatekeeping score, recommendation, ranking, classification, or flag.HRS § 480-A consequential decisionsConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A.
(b) 5 Any term in an AI user agreement that purports to waive, limit, or disclaim a deployersDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A obligations under this part, or to waive a consumers rights or remedies under state law, shall be void.
This section requires deployers to present an AI user agreement before or at the start of any consumer-facing AI interaction. The agreement must describe the nature of the AI interaction and its known material limitations (including hallucination risk), the categories of data collected and how data will be used, how to reach a human representative and dispute outcomes, and any use of the AI interaction in consequential decisions. The section also voids any contractual term that attempts to waive deployer obligations under this part or consumer rights under state law.
(a)(1)–(3) 6 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A and vendorVendor"Vendor" means a person that provides, licenses, hosts, maintains, or materially modifies an AI system or automated decision tool on behalf of a deployer.HRS § 480-A shall use reasonable care to protect consumers from any known or reasonably foreseeable material risks of: (1) Algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the use of an artificial intelligence system or automated decision tool that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law.HRS § 480-A; (2) Material errors, including systematic reliability failures; and (3) Cybersecurity and data integrity failures that materially affect the reliability or security of outputs.
(b)(1)–(6) 7 Before deploying a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A, and throughout the period of deployment, a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall implement and maintain a written risk management program that is risk-based and proportionate to the nature of the consequential decisionsConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A and the degree of potential harm to consumers, and that includes: (1) Governance and accountability for AI system use, including designation of responsible personnel; (2) Documented policies and procedures covering procurement, development, use, monitoring, incident response, and retirement of high-risk AI systemsHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A; (3) Data governance controls addressing data quality, relevance, limitations, and reasonably practicable data lineage; (4) Pre-deployment testing and ongoing monitoring designed to detect material errors, model drift, and algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the use of an artificial intelligence system or automated decision tool that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law.HRS § 480-A; (5) Controls addressing vendorVendor"Vendor" means a person that provides, licenses, hosts, maintains, or materially modifies an AI system or automated decision tool on behalf of a deployer.HRS § 480-A and third-party risks, including contract terms requiring reasonable cooperation with oversight, auditing, and consumer dispute handling; and (6) Recordkeeping sufficient to demonstrate compliance with this part.
(c)(1)–(5) 8 At least annually, and upon any intentional and substantial modification of a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A, a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall complete an internal impact assessment that evaluates: (1) The system's intended use and reasonably foreseeable misuse; (2) The categories of data used and material limitations; (3) The reasonably foreseeable risks of material consumer harm, including financial and reputational harm; (4) The steps taken to mitigate material risks, including algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the use of an artificial intelligence system or automated decision tool that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law.HRS § 480-A; and (5) A summary of monitoring results and identified material issues, if any.
(d) 9 Impact assessments and risk management program documentation shall be retained for not less than five years after the system is retired or materially modified, whichever is later, and shall be made available to the executive directorExecutive director"Executive director" means the executive director of the office of consumer protection.HRS § 480-A or the attorney general upon request; provided that confidential commercial information shall be protected to the extent permitted by law.
This section establishes a two-tiered obligation. First, all deployers and vendors owe a general duty of reasonable care to protect consumers from known or reasonably foreseeable risks of algorithmic discrimination, material errors, and cybersecurity failures. Second, deployers of high-risk AI systems must implement and maintain a written risk management program — before and throughout deployment — covering governance and accountability, documented policies for the full AI lifecycle, data governance controls, pre-deployment testing and ongoing monitoring, vendor risk controls, and recordkeeping. Additionally, deployers must conduct annual impact assessments (and upon substantial modification) covering intended use, data categories, foreseeable consumer harms, mitigation steps, and monitoring results. All documentation must be retained for at least five years after the system is retired or materially modified, and must be produced to the Executive Director or Attorney General upon request.
(a)(1)–(3) 10 When an AI system output is used as a substantial factor in an adverse actionAdverse action"Adverse action" means a denial, reduction, termination, or other materially unfavorable change in, or refusal to provide, a product, service, price, term, or condition that is the result of, or is materially influenced by, a consequential decision.HRS § 480-A, the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall maintain documentation sufficient to: (1) Identify the system used, the nature of the output relied upon, and the decision process; (2) Support the disclosures required by section 480-C; and (3) Support meaningful reconsideration and human review under section 480-D.
(b) 11 Upon request by a consumer and to the extent reasonably necessary to support dispute resolution, a deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall provide the consumer with access to relevant records, including a copy or summary of the information used by the high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A and the output that was relied upon as a substantial factor; provided that the deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall not be required to disclose proprietary source code or trade secrets.
This section requires deployers to maintain documentation sufficient to identify the AI system used, the output relied upon, and the decision process whenever an AI system output is a substantial factor in an adverse action. This documentation must support the disclosures required by § 480-C and enable meaningful reconsideration and human review under § 480-D. Consumers may request access to relevant records, including a copy or summary of the information used by the AI system and the output relied upon, subject to trade-secret protections.
(a)(1)–(2) 12 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall notify the executive directorExecutive director"Executive director" means the executive director of the office of consumer protection.HRS § 480-A and the attorney general within ninety days after discovering: (1) A material violation of this part affecting a class of consumers; or (2) That a high-risk AI systemHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A caused or materially contributed to algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the use of an artificial intelligence system or automated decision tool that contributes to unjustified differential treatment or unjustified differential impact that disfavors a person or class of persons on the basis of a characteristic protected by state or federal law.HRS § 480-A or other material consumer harm.
(b)(1)–(4) 12 The notification shall include a description of: (1) The nature of the issue; (2) The categories of consumers potentially affected; (3) The deployersDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A mitigation steps and corrective actions; and (4) Any changes made to prevent recurrence.
(c) Nothing in this section shall be construed to limit any obligation to notify consumers or government agencies under other applicable state or federal law.
This section requires deployers to notify the Executive Director of the Office of Consumer Protection and the Attorney General within 90 days of discovering either a material violation of this part affecting a class of consumers or that a high-risk AI system caused or materially contributed to algorithmic discrimination or other material consumer harm. The notification must describe the issue, categories of affected consumers, mitigation and corrective actions, and changes to prevent recurrence. The section includes a savings clause preserving obligations under other state or federal law.
(a)(1)–(2) 13 A deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A shall not represent, expressly or by implication, that: (1) A consumer is required to accept an AI-generated output as accurate or binding; or (2) The deployerDeployer"Deployer" means a person that uses, operates, or makes available an AI system or automated decision tool in the course of business in the State, including use through a vendor, when the system or tool is used to interact with a consumer or to make, inform, or materially influence a consequential decision.HRS § 480-A is not responsible for an act or omission because an AI system generated, recommended, or performed the act.
(b) A violation of this part shall constitute an unfair or deceptive act or practice under section 480-2.
(c) Nothing in this part shall be construed to diminish any obligation under state or federal civil rights, fair housing, consumer credit, insurance, employment, privacy, data security, or other applicable law.
This section establishes two prohibitions on deployer representations and the bill's enforcement hook. First, deployers may not represent that consumers must accept AI-generated output as accurate or binding. Second, deployers may not disclaim responsibility for acts or omissions on the ground that an AI system generated or performed the act. Violations of any provision in this part constitute unfair or deceptive acts or practices under HRS § 480-2, bringing the full enforcement apparatus of Hawaii's consumer protection statute to bear. The savings clause preserves all obligations under existing civil rights, fair housing, consumer credit, insurance, employment, privacy, data security, and other applicable law.
(1)–(4) The executive directorExecutive director"Executive director" means the executive director of the office of consumer protection.HRS § 480-A may adopt rules pursuant to chapter 91 to implement this part, including rules: (1) Further defining consequential decisionsConsequential decision"Consequential decision" means a decision that determines or materially influences a consumer's access to, eligibility for, or the terms, conditions, or pricing of: (1) Housing or rental screening, including a lease, tenancy, or occupancy determination; (2) Credit, lending, or other financial services; (3) Insurance; (4) Employment, including hiring, promotion, termination, scheduling, compensation, or the assignment of work; (5) Education admissions or educational opportunities; (6) Health care services, including access to care, payment, or coverage determinations; (7) Legal services provided to a consumer in a consumer-facing context; or (8) Any other category designated by the director by rule as a consequential decision due to a comparable risk of material financial, reputational, or legal harm.HRS § 480-A and high-risk AI systemsHigh-risk AI system"High-risk AI system" means an AI system or automated decision tool that is used to make, or is a substantial factor in making, a consequential decision.HRS § 480-A based on consumer risk; (2) Establishing minimum standards for disclosures, timing, and consumer-facing format; (3) Establishing baseline elements for risk management programs and impact assessments proportionate to risk; and (4) Establishing procedures for submission and protection of confidential and proprietary information.
This section grants the Executive Director of the Office of Consumer Protection rulemaking authority to implement the new AI consumer protection part, including authority to further define consequential decisions and high-risk AI systems, establish minimum disclosure standards, set baseline elements for risk management programs and impact assessments, and establish procedures for protecting confidential and proprietary information submitted by deployers.