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S07263 Summary:

BILL NOS07263A
 
SAME ASSAME AS A06545-C
 
SPONSORGONZALEZ
 
COSPNSRHINCHEY, LIU, SALAZAR
 
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--A
            Cal. No. 434
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                      April 7, 2025
                                       ___________
 
        Introduced  by  Sens.  GONZALEZ, HINCHEY, LIU, SALAZAR -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Internet  and  Technology  -- recommitted to the Committee on Internet
          and Technology in accordance with Senate Rule 6, sec.  8  --  reported
          favorably  from  said  committee,  ordered to first and second report,
          ordered to a third reading, amended and ordered  reprinted,  retaining
          its place in the order of third reading
 
        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" shall have the same meaning as defined
     6  by section seventeen hundred of this chapter.
     7    (b) "Generative artificial intelligence" shall have the  same  meaning
     8  as defined by section seventeen hundred of this chapter.
     9    (c) "Chatbot" shall mean an artificial intelligence system, generative
    10  artificial  intelligence, software program, or technological application
    11  that simulates human-like conversation in response to  user  inputs  and
    12  interaction  through  text  messages,  voice  commands, or a combination
    13  thereof to provide information and services to users.
    14    (d) "Covered profession" shall mean a profession  whose  licensure  is
    15  governed  under  articles  one  hundred  thirty-one, one hundred thirty-
    16  three, one hundred thirty-five,  one  hundred  thirty-six,  one  hundred
    17  thirty-seven,  one  hundred  thirty-nine,  one  hundred  forty-one,  one
    18  hundred forty-three, one hundred forty-five,  one  hundred  forty-seven,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10388-08-6

        S. 7263--A                          2
 
     1  one  hundred  fifty-three, one hundred fifty-four, or one hundred sixty-
     2  three of the education law or article fifteen of the judiciary law.
     3    (e)  "Operator" shall mean any person, partnership, association, firm,
     4  or business entity, or any member, affiliate, subsidiary  or  beneficial
     5  owner  of  any  partnership,  association,  firm, or business entity who
     6  owns, operates or deploys a chatbot used to  interact  with  users.  The
     7  term  "operator"  shall  not include third-party developers that license
     8  their chatbot technology to an operator.
     9    2. (a) An operator of a chatbot shall not knowingly permit such  chat-
    10  bot  to  impersonate  an  actual or fictitious practitioner of a covered
    11  profession in a manner that, if done by a natural person:
    12    (i) would constitute a crime under section sixty-five  hundred  twelve
    13  or  sixty-five  hundred  thirteen  of the education law in relation to a
    14  covered profession; 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)  For  the purposes of establishing a violation of subparagraph (i)
    19  or (ii) of paragraph (a) of  this  subdivision,  an  operator  shall  be
    20  deemed to know that a chatbot cannot lawfully practice a covered profes-
    21  sion or appear as an attorney-at-law.
    22    (c)  An  operator  shall  not  waive  or disclaim liability under this
    23  section by notifying consumers that they are interacting with a  non-hu-
    24  man chatbot system.
    25    (d)  An  operator  shall  not  be  liable under this section where the
    26  impersonation is a result of  a  user  intentionally  circumventing  the
    27  terms  of  service  or  the  safeguards  implemented  by the operator to
    28  prevent such impersonation.
    29    3. Operators utilizing chatbots shall provide clear,  conspicuous  and
    30  explicit  notice  to  users that they are interacting with an artificial
    31  intelligence chatbot program. The text of the notice shall appear in the
    32  same language the chatbot is using and in a size easily readable by  the
    33  average  viewer  and no smaller than the largest font size of other text
    34  appearing on the website on which the chatbot is utilized.
    35    4. Whenever the attorney general shall believe from evidence satisfac-
    36  tory to them that an operator has engaged in or is about  to  engage  in
    37  any of the acts or practices stated to be unlawful in this section, they
    38  may bring an action in the name and on behalf of the people of the state
    39  of  New York to enjoin an operator from continuing such unlawful acts or
    40  practices, and may seek  civil  penalties  of  up  to  fifteen  thousand
    41  dollars per day for a violation of this section, and may seek such other
    42  remedies as the court may deem appropriate.
    43    5.   The   attorney  general  shall  maintain  a  website  to  receive
    44  complaints, information or referrals from members of the public concern-
    45  ing violations of the provisions of this section.
    46    § 2. This act shall take effect on the ninetieth day  after  it  shall
    47  have become a law.
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