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S07263 Summary:

BILL NOS07263
 
SAME ASSAME AS A06545-A
 
SPONSORGONZALEZ
 
COSPNSR
 
MLTSPNSR
 
Add §390-f, Gen Bus L
 
Imposes liability for damages caused by a chatbot impersonating certain licensed professionals.
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S07263 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7263
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                      April 7, 2025
                                       ___________
 
        Introduced  by Sen. GONZALEZ -- read twice and ordered printed, and when
          printed to be committed to the Committee on Internet and Technology
 
        AN ACT to amend the  general  business  law,  in  relation  to  imposing
          liability  for  damages  caused  by  a  chatbot  impersonating certain
          licensed professionals

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The general business law is amended by adding a new section
     2  390-f to read as follows:
     3    §  390-f. Liability for chatbot responses. 1. As used in this section,
     4  the following terms shall have the following meanings:
     5    (a) "Artificial intelligence system"  or  "AI  system"  shall  mean  a
     6  machine-based  system  or  combination  of systems, that for explicit or
     7  implicit objectives, infers, from the input it receives, how to generate
     8  outputs such as predictions, content, recommendations, or decisions that
     9  can influence physical or virtual environments. Artificial  intelligence
    10  shall  not  include  any  software used primarily for basic computerized
    11  processes, such as  anti-malware,  anti-virus,  auto-correct  functions,
    12  calculators,  databases,  data storage, electronic communications, fire-
    13  wall, internet domain registration, internet website  loading,  network-
    14  ing,  spam  and  robocall-filtering, spellcheck tools, spreadsheets, web
    15  caching, web hosting, or any tool that relates only to internal  manage-
    16  ment  affairs  such  as ordering office supplies or processing payments,
    17  and that do not materially affect the rights, liberties, benefits, safe-
    18  ty or welfare of any individual within the state.
    19    (b) "Chatbot" shall mean an artificial intelligence  system,  software
    20  program,  or technological application that simulates human-like conver-
    21  sation and interaction through  text  messages,  voice  commands,  or  a
    22  combination thereof to provide information and services to users.
    23    (c)  "Proprietor"  shall mean any person, business, company, organiza-
    24  tion, institution or government entity that owns, operates or deploys  a
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10388-04-5

        S. 7263                             2
 
     1  chatbot  system  used  to  interact  with  users.  Proprietors shall not
     2  include third-party developers that license their chatbot technology  to
     3  a proprietor.
     4    2.  (a)  A  proprietor  of  a chatbot shall not permit such chatbot to
     5  provide any substantive response, information, or advice,  or  take  any
     6  action which, if taken by a natural person:
     7    (i)  would  constitute a crime under section sixty-five hundred twelve
     8  or sixty-five hundred thirteen of the education law in relation  to  the
     9  professions whose licensure is governed under articles one hundred thir-
    10  ty-one,  one  hundred thirty-three, one hundred thirty-five, one hundred
    11  thirty-six, one  hundred  thirty-seven,  one  hundred  thirty-nine,  one
    12  hundred  forty-one, one hundred forty-three, one hundred forty-five, one
    13  hundred forty-seven, one hundred fifty-three,  one  hundred  fifty-four,
    14  and one hundred sixty-three of the education law; or
    15    (ii)  would violate the provisions of article fifteen of the judiciary
    16  law prohibiting the practice or appearance as an attorney-at-law without
    17  being admitted and registered under such article.
    18    (b) A proprietor may not waive or disclaim this  liability  merely  by
    19  notifying  consumers  that they are interacting with a non-human chatbot
    20  system.
    21    3. A person may bring a civil action to recover actual damages and, if
    22  it is found that such proprietor has willfully  violated  this  section,
    23  the  violator shall be liable for actual damages together with costs and
    24  reasonable attorneys' fees and  disbursements  incurred  by  the  person
    25  bringing such action.
    26    4. Proprietors utilizing chatbots shall provide clear, conspicuous and
    27  explicit  notice  to  users that they are interacting with an artificial
    28  intelligence chatbot program. The text of the notice shall appear in the
    29  same language the chatbot is using and in a size easily readable by  the
    30  average  viewer  and no smaller than the largest font size of other text
    31  appearing on the website on which the chatbot is utilized.
    32    § 2. This act shall take effect on the ninetieth day  after  it  shall
    33  have become a law.
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