SB 2 — AN ACT CONCERNING ARTIFICIAL INTELLIGENCE.

1882 10(2) sSB2A Filedeployer No.may provide to a consumer the notice, statement, contact information and description required under subdivision (1) of this subsection in any manner that is clear and readily available.

188 (2) A deployer may provide to a consumer the notice, statement, contact information and description required under subdivision (1) of this subsection in any manner that is clear and readily available.

(i) Beginning on July 1, 2025, the Attorney General or the Commissioner of Consumer Protection may require that a deployer, or the third party contracted by the deployer as set forth in subsection (c) ofLCO this11 section,of as58 applicable,Substitute discloseBill to the Attorney General or the sSB2 / File No.

1882 11of sSB2this Filesection, No.as applicable, disclose to the Attorney General or the Commissioner of Consumer Protection, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, any risk management policy implemented pursuant to subsection (b) of this section, impact assessment completed pursuant to subsection (c) of this section or record maintained pursuant to subdivision (5) of subsection (c) of this section if such risk management policy, impact assessment or record is relevant to an investigation conducted by the Attorney General or the Commissioner of Consumer Protection.

188 Commissioner of Consumer Protection, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, any risk management policy implemented pursuant to subsection (b) of this section, impact assessment completed pursuant to subsection (c) of this section or record maintained pursuant to subdivision (5) of subsection (c) of this section if such risk management policy, impact assessment or record is relevant to an investigation conducted by the Attorney General or the Commissioner of Consumer Protection.

(ii) the type and nature of artificialLCO intelligence12 systemsof in58 whichSubstitute suchBill general-purpose artificial intelligencemodelcanbeintegrated;(iii)acceptableusepoliciesfor such sSB2 / File No.

1882 12artificial sSB2intelligence Filesystems No.in which such general-purpose artificial intelligencemodelcanbeintegrated;(iii)acceptableusepoliciesfor such general-purpose artificial intelligence model;

188 general-purpose artificial intelligence model;

(B) Discloses, at a minimum, (i) the technical means required for such general-purpose artificial intelligence model to be integrated into such deployers' artificial intelligence systems, (ii) the design specifications of, and training processes for, such general-purpose artificial intelligence model, including, but not limited to, (I) the training methodologies and techniques for such general-purpose artificial intelligence model, and (II) the key design choices for such general-purpose artificial intelligence model, including, but not limited to, the rationale and assumptions made, (iii) that for which such general-purpose artificial intelligence model is designed to optimize and the relevance of the differentparameters,asapplicable,and(iv)adescriptionofthedatathat was used for purposes of training, testing and validation, where applicable, including, but not limited to, (I) the type and provenance of suchLCO data,13 (II) curation methodologies, (III) the number of data58 points,Substitute theirBill scope and main characteristics, (IV) how such data were obtained and selected, and (V) all other measures used to identify unsuitable data sSB2 / File No.

1882 13such sSB2data, File(II) No.curation methodologies, (III) the number of data points, their scope and main characteristics, (IV) how such data were obtained and selected, and (V) all other measures used to identify unsuitable data sources and methods used to detect identifiable biases, where applicable;

188 sources and methods used to detect identifiable biases, where applicable;

(c) Nothing in subsection (a) of this section shall be construed to requireLCO a14 developer to disclose any trade secret, as defined in section 35- 51 of the58 generalSubstitute statutes,Bill orNo. other confidential or proprietary information.

sSB22 /require Filea No.developer to disclose any trade secret, as defined in section 35- 51 of the general statutes, or other confidential or proprietary information.

188(d) 14Beginning sSB2on FileJanuary No.1, 2026, the Attorney General or the Commissioner of Consumer Protection may require that a developer disclose to the Attorney General or the Commissioner of Consumer Protection, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, any documentation maintained pursuant to this section if such documentation is relevant to an investigation conducted by the Attorney General or the Commissioner of Consumer Protection.

188 (d) Beginning on January 1, 2026, the Attorney General or the Commissioner of Consumer Protection may require that a developer disclose to the Attorney General or the Commissioner of Consumer Protection, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, any documentation maintained pursuant to this section if such documentation is relevant to an investigation conducted by the Attorney General or the Commissioner of Consumer Protection.

(b)No disclosure shall berequiredunder subsection(a)ofthissection underLCO circumstances15 inof which:58 Substitute Bill No.

2 under circumstances in which:

or sSB2(2) /The Filedeployer No.did not make the artificial intelligence system directly available to consumers.

188 15 sSB2 File No.

188 (2) The deployer did not make the artificial intelligence system directly available to consumers.

Sec.LCO 16 of 58 Substitute Bill No.

2 Sec.

(NEW) (Effective October 1, 2024) (a) Except as provided in subsections (b) to (d), inclusive, of this section, the deployer of an artificial intelligence system, including, but not limited to, a general- purpose artificial intelligence model, that generates or manipulates any sSB2synthetic /digital Filecontent No.shall disclose to a consumer that such synthetic digital content has been artificially generated or manipulated:

188 16 sSB2 File No.

188 synthetic digital content shall disclose to a consumer that such synthetic digital content has been artificially generated or manipulated:

and (2)Inamannerthat(A)isclearto,anddistinguishable(2)Inamannerthat(A)isclearto,anddistinguishableby,consumers, by,consumers, and (B) respects any applicable accessibility requirements.

(NEW) (Effective October 1, 2024) (a) Nothing in sections 1 to 9, inclusive, of this act shall be construed to restrict a developer's or deployer'sLCO ability17 to:of 58 Substitute Bill No.

2 deployer's ability to:

(3) cooperate with law enforcement agencies sSB2concerning /conduct Fileor No.activity that the developer or deployer reasonably and in good faith believes may violate federal, state or municipal law;

188 17 sSB2 File No.

188 concerning conduct or activity that the developer or deployer reasonably and in good faith believes may violate federal, state or municipal law;

(c) The obligations imposed on developers or deployers under sections 1 to 9, inclusive, of this act shall not apply where compliance by the developer or deployer with said sections would violate an evidentiaryLCO privilege18 underof the58 lawsSubstitute ofBill thisNo. state.

(d)2 Nothingevidentiary inprivilege sectionsunder 1the tolaws 9, inclusive, of this actstate. shall be construed to impose any obligation on a developer or deployer that adversely sSB2 / File No.

188(d) 18Nothing sSB2in Filesections No.1 to 9, inclusive, of this act shall be construed to impose any obligation on a developer or deployer that adversely affects the rights or freedoms of any person, including, but not limited to, the rights of any person:

188 affects the rights or freedoms of any person, including, but not limited to, the rights of any person:

If the developer or deployer fails to cure such violation not later than sixty days after receipt of the notice of violation, the Attorney General or the CommissionerLCO 19 of Consumer58 ProtectionSubstitute mayBill bringNo. an action pursuant to this section.

Not2 later than January 1, 2027, the Attorney General or the Commissioner of Consumer Protection shallmay submitbring aan report,action inpursuant accordanceto withthis thesection. provisions of section 11-4a of the general statutes, sSB2 / File No.

188Not 19later sSB2than FileJanuary No.1, 2027, the Attorney General or the Commissioner of Consumer Protection shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to consumer protection disclosing:

188 to the joint standing committee of the General Assembly having cognizance of matters relating to consumer protection disclosing:

(f) (1) In any action commenced by the Attorney General or the CommissionerLCO of20 Consumer Protection for any violation of sections58 1Substitute toBill 8,No. inclusive, of this act, it shall be an affirmative defense that:

2 Commissioner of Consumer Protection for any violation of sections 1 to 8, inclusive, of this act, it shall be an affirmative defense that:

sSB2(i) /The Filelatest No.version of the "Artificial Intelligence Risk Management Framework" published by the National Institute of Standards and Technology or another nationally or internationally recognized risk management framework for artificial intelligence systems;

188 20 sSB2 File No.

188 (i) The latest version of the "Artificial Intelligence Risk Management Framework" published by the National Institute of Standards and Technology or another nationally or internationally recognized risk management framework for artificial intelligence systems;

(2)LCO The21 developer or deployer bears the burden of demonstrating58 toSubstitute theBill AttorneyNo. General or the Commissioner of Consumer Protection that the requirements established in subdivision (1) of this subsection have been satisfied.

sSB22 /(2) FileThe No.developer or deployer bears the burden of demonstrating to the Attorney General or the Commissioner of Consumer Protection that the requirements established in subdivision (1) of this subsection have been satisfied.

188(3) 21The sSB2Attorney FileGeneral No.or the Commissioner of Consumer Protection shall notify the Commission on Human Rights and Opportunities, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, each time the Attorney General or the Commissioner of Consumer Protection commences any action against a deployer for failure to use reasonable care to protect any consumer from any known or reasonably foreseeable risk of algorithmic discrimination as requiredunder section 3 of this act.

188 (3) The Attorney General or the Commissioner of Consumer Protection shall notify the Commission on Human Rights and Opportunities, in a form and manner prescribed by the Attorney General or the Commissioner of Consumer Protection, each time the Attorney General or the Commissioner of Consumer Protection commences any action against a deployer for failure to use reasonable care to protect any consumer from any known or reasonably foreseeable risk of algorithmic discrimination as requiredunder section 3 of this act.

[(3)](4)"Commissionlegalcounsel"meansamemberLCO ofthelegalstaff22 employedof by58 theSubstitute commissionBill pursuantNo. to section 46a-54, as amended by this act;

2 [(3)](4)"Commissionlegalcounsel"meansamember ofthelegalstaff employed by the commission pursuant to section 46a-54, as amended by this act;

sSB2[(5)] /(6) File"Court" No.means the Superior Court or any judge of said court;

188 22 sSB2 File No.

188 [(5)] (6) "Court" means the Superior Court or any judge of said court;

[(11)] (13) "Employment agency"means any personundertaking with orLCO without23 compensationof to58 procureSubstitute employeesBill orNo. opportunities to work;

[(12)]2 (14)or "Laborwithout organization"compensation meansto anyprocure organizationemployees which exists forthepurpose,inwholeorinpart,ofcollectivebargainingorofdealing with employers concerning grievances, terms or conditionsopportunities ofto sSB2work; / File No.

188[(12)] 23(14) sSB2"Labor Fileorganization" No.means any organization which exists forthepurpose,inwholeorinpart,ofcollectivebargainingorofdealing with employers concerning grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment;

188 employment, or of other mutual aid or protection in connection with employment;

[(18)] (20) "Discrimination on the basis of religious creed" includes but is not limited to discrimination related to all aspects of religious observances and practice as well as belief, unless an employer demonstrates that the employer is unable to reasonably accommodate to an employee's or prospective employee's religious observance or practiceLCO without24 undue hardship on the conduct of the58 employer'sSubstitute business;Bill No.

[(19)]2 (21)practice "Learningwithout disability"undue refershardship toon anthe individualconduct who exhibits a severe discrepancy between educational performance and measured intellectual ability and who exhibits a disorder in one or more of the basicemployer's psychologicalbusiness; processes involved in understanding or in using sSB2 / File No.

188[(19)] 24(21) sSB2"Learning Filedisability" No.refers to an individual who exhibits a severe discrepancy between educational performance and measured intellectual ability and who exhibits a disorder in one or more of the basic psychological processes involved in understanding or in using language, spoken or written, which may manifest itself in a diminished ability to listen, speak, read, write, spell or to do mathematical calculations;

188 language, spoken or written, which may manifest itself in a diminished ability to listen, speak, read, write, spell or to do mathematical calculations;

[(25)]LCO (27)25 "Domesticof violence"58 hasSubstitute theBill sameNo. meaning as provided in subsection (b) of section 46b-1;

2 [(25)] (27) "Domestic violence" has the same meaning as provided in subsection (b) of section 46b-1;

sSB2Sec. / File No.

188 25 sSB2 File No.

188 Sec.

(d)LCO Notwithstanding26 any other provision of chapter58 814cSubstitute ofBill theNo. general statutes, and except as provided in subsection (f) of this section, beginning on July 1, 2026, the commission may, in determining whether to grant a deployer the opportunity to cure any discriminatory practice in violation of subsection (b) of this section, consider:

2 (d) Notwithstanding any other provision of chapter 814c of the general statutes, and except as provided in subsection (f) of this section, beginning on July 1, 2026, the commission may, in determining whether to grant a deployer the opportunity to cure any discriminatory practice in violation of subsection (b) of this section, consider:

(4) the substantial likelihood of injury sSB2to /the Filepublic; No.

188 26 sSB2 File No.

188 to the public;

(I) As a result of the feedback described in subparagraphLCO (B)(i)27 of this58 subdivision;Substitute Bill No.

2 subparagraph (B)(i) of this subdivision;

sSB2and /(II) Fileprovides No.to the commission, in a form and manner prescribed by the commission, notice that such violation has been cured and evidence that any harm caused by such violation has been mitigated.

188 27 sSB2 File No.

188 and (II) provides to the commission, in a form and manner prescribed by the commission, notice that such violation has been cured and evidence that any harm caused by such violation has been mitigated.

(2) To organize the commission into a division of affirmative action monitoring and contract compliance, a division of discriminatory practice complaints and such other divisions, bureaus or units as may beLCO necessary28 for the efficient conduct of business58 ofSubstitute theBill commission;No.

2 be necessary for the efficient conduct of business of the commission;

(4) To appoint such investigators and other employees and agents as sSB2it /deems Filenecessary, No.fix their compensation within the limitations provided by law and prescribe their duties;

188 28 sSB2 File No.

188 it deems necessary, fix their compensation within the limitations provided by law and prescribe their duties;

(11) To require written answers to interrogatories under oath relating to any complaint under investigation pursuant to this chapter alleging any discriminatory practice asdefinedin subdivision [(8)] (10)of section 46a-51, as amended by this act, and to adopt regulations, in accordance with the provisions of chapter 54, for the procedure for the issuance of interrogatoriesLCO and29 complianceof with58 interrogatorySubstitute requests;Bill No.

(12)2 Tointerrogatories utilize such voluntary and uncompensatedcompliance services of private individuals, agencies and organizations as may from time to time be offered and needed and with theinterrogatory cooperationrequests; of such agencies, (A) to study the problems of discrimination in all or specific fields of human relationships, and (B) to foster through education and community effort sSB2 / File No.

188(12) 29To sSB2utilize Filesuch No.voluntary and uncompensated services of private individuals, agencies and organizations as may from time to time be offered and needed and with the cooperation of such agencies, (A) to study the problems of discrimination in all or specific fields of human relationships, and (B) to foster through education and community effort or otherwise good will among the groups and elements of the population of the state;

188 or otherwise good will among the groups and elements of the population of the state;

An employer may comply with the requirements of this subparagraph, by providing an employee with the link to the commission's Internet web site concerning the illegality of sexual harassmentLCO and30 the remedies available to victims of sexual58 harassmentSubstitute byBill electronicmail,textmessageNo. or inwriting;and(C)providetwo hours of training and education to employees within one year of October 1, 2019, provided any employer who has provided such training and education to any such employees after October 1, 2018, shall not be required to provide such training and education a second time.

An2 employerharassment havingand (i)the threeremedies available to victims of sexual harassment by electronicmail,textmessage or morein employees,writing;and(C)providetwo hours of training and education to employees within one year of October 1, 2019, provided any employer who has provided such training and education to any such employees after October 1, 2018, shall not be required to provide such sSB2training /and Fileeducation No.a second time.

188An 30employer sSB2having File(i) No.three or more employees, shall provide such training and education to an employee hired on or after October 1, 2019, not later than six months after the date of his or her hire, provided the commission has developed and made available such training and education materials in accordance with the provisions of subdivision (8) of subsection (a) of section 46a-56;

188or (ii) less than three employees shall provide such training and education to anall employeesupervisory hiredemployees onwithin orone afteryear of October 1, 2019, notand laterto thanall new supervisory employees within six months afterof thetheir dateassumption of hisa orsupervisory herposition, hire, provided theany commissionemployer who has developedprovided and made available such training and educationeducationtoanysuchsupervisoryemployeesafterOctober1,2018,shall materialsnot inbe accordancerequired withto theprovide provisionssuch oftraining subdivisionand (8)education ofa subsectionsecond (a)time. of section 46a-56;

or (ii) less than three employees shall provide such training and education to all supervisory employees within one year of October 1, 2019, and to all new supervisory employees within six months of their assumption of a supervisory position, provided any employer who has provided such training and educationtoanysuchsupervisoryemployeesafterOctober1, 2018,shall not be required to provide such training and education a second time.

An employer who is required to provide training under this subdivision shall provide periodic supplemental training that updates all supervisoryLCO and31 nonsupervisory employees on the content of such58 trainingSubstitute andBill educationNo. not less than every ten years.

2 supervisory and nonsupervisory employees on the content of such training and education not less than every ten years.

sSB2(16) /To Filerequire No.each state agency that employs one or more employees to (A) provide a minimum of three hours of diversity training and education (i) to all supervisory and nonsupervisory employees, not later than July 1, 2002, with priority for such training to supervisory employees, and (ii) to all newly hired supervisory and nonsupervisory employees, not later than six months after their assumption of a position with a state agency, with priority for such training to supervisory employees.

188 31 sSB2 File No.

188 (16) To require each state agency that employs one or more employees to (A) provide a minimum of three hours of diversity training and education (i) to all supervisory and nonsupervisory employees, not later than July 1, 2002, with priority for such training to supervisory employees, and (ii) to all newly hired supervisory and nonsupervisory employees, not later than six months after their assumption of a position with a state agency, with priority for such training to supervisory employees.

(17)LCO To32 require each agency to submit information demonstrating its compliance with subdivision (16) of this58 sectionSubstitute asBill partNo. of its affirmative action plan and to receive and investigate complaints concerning the failure of a state agency to comply with the requirements of subdivision (16) of this section;

(18)2 (17) To enterrequire intoeach contractsagency forto andsubmit acceptinformation grantsdemonstrating its compliance with subdivision (16) of privatethis orsection federalas fundspart of its affirmative action plan and to acceptreceive gifts,and donationsinvestigate orcomplaints bequests,concerning includingthe donationsfailure of sSB2a /state Fileagency No.to comply with the requirements of subdivision (16) of this section;

188(18) 32To sSB2enter Fileinto No.contracts for and accept grants of private or federal funds and to accept gifts, donations or bequests, including donations of service by attorneys;

188 service by attorneys;

Such impact assessment shallLCO be33 exempt from disclosure under the Freedom of Information58 Act,Substitute asBill definedNo. in section 1-200.

2 shall be exempt from disclosure under the Freedom of Information Act, as defined in section 1-200.

Nothing in this subdivision shall be construed to require a deployer, or the third party contracted by a deployer as set forth in subsection (c) of section 3 of this act, as applicable, to disclose any trade secret, as defined in sSB2section /35-51, Fileor No.other confidential or proprietary information.

188 33 sSB2 File No.

188 section 35-51, or other confidential or proprietary information.

Sec.LCO 34 of 58 Substitute Bill No.

2 Sec.

(c) In any prosecution under this section involving assault of a health care employee, as defined in section 19a-490q, it shall be an affirmative defense that the defendant is a person with a disability as described in subdivision [(13), (15) or (20)] (15), (17) or (22) of section 46a-51, as sSB2amended /by Filethis No.act, and the defendant's conduct was a clear and direct manifestation of the disability, except that for the purposes of this subsection, "mental disability", as defined in subdivision [(20)] (22) of section46a-51,asamendedbythisact,doesnotincludeanyabnormality manifested only by repeated criminal or antisocial conduct.

188 34 sSB2 File No.

188 amended by this act, and the defendant's conduct was a clear and direct manifestation of the disability, except that for the purposes of this subsection, "mental disability", as defined in subdivision [(20)] (22) of section46a-51,asamendedbythisact,doesnotincludeanyabnormality manifested only by repeated criminal or antisocial conduct.

(2) maintain an ongoingLCO dialogue35 between academia, government and industry concerningartificialintelligence;(3)makerecommendationsconcerning the adoption of legislation58 toSubstitute ensureBill thatNo. this state is a leader in artificial intelligence innovation;

2 ongoing dialogue between academia, government and industry concerningartificialintelligence;(3)makerecommendationsconcerning the adoption of legislation to ensure that this state is a leader in artificial intelligence innovation;

(c) (1) (A) The advisory council shall be part of the Legislative sSB2Department /and Fileconsist No.of the following voting members:

188 35 sSB2 File No.

188 Department and consist of the following voting members:

(B)LCO All36 voting members appointed pursuant to subparagraphs (A)(i) to (A)(ix), inclusive, of this58 subdivisionSubstitute shallBill haveNo. professional experience or academic qualifications in matters pertaining to artificial intelligence, automated systems, government policy or another related field.

(C)2 (B) All initialvoting appointmentsmembers toappointed thepursuant advisoryto council under subparagraphs (A)(i) to (A)(ix), inclusive, of this subdivision shall behave sSB2professional /experience Fileor No.academic qualifications in matters pertaining to artificial intelligence, automated systems, government policy or another related field.

188(C) 36All sSB2initial Fileappointments No.to the advisory council under subparagraphs (A)(i) to (A)(ix), inclusive, of this subdivision shall be made not later than thirty days after the effective date of this section.

188 made not later than thirty days after the effective date of this section.

Such chairpersons shall schedule the first meeting of the advisory council,LCO which37 shallof be58 heldSubstitute notBill laterNo. than sixty days after the effective date of this section.

(e)2 Notcouncil, laterwhich than January 1, 2025, and at least annually thereafter, the advisory council shall submitbe aheld report,not inlater accordancethan withsixty thedays provisionsafter of section 11-4a of the generaleffective statutes,date to the joint standing committee of thethis Generalsection. Assembly having cognizance of matters relating to consumer protection and to the Commissioner of Economic and Community Development setting forth the advisory council's sSB2 / File No.

188(e) 37Not sSB2later Filethan No.January 1, 2025, and at least annually thereafter, the advisory council shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to consumer protection and to the Commissioner of Economic and Community Development setting forth the advisory council's findings and recommendations.

188 findings and recommendations.

(1) Any synthetic intimate image described in subsection (a) of this section of such other person if such image resulted from voluntary exposureLCO or38 engagement in sexual intercourse by such other person, in a public place, as defined in section 53a-181 of the58 generalSubstitute statutes,Bill orNo. in a commercial setting;

2 exposure or engagement in sexual intercourse by such other person, in a public place, as defined in section 53a-181 of the general statutes, or in a commercial setting;

sSB2(3) /Any Filesynthetic No.intimate image described in subsection (a) of this section of such other person, if the dissemination of such image serves the public interest;

188 38 sSB2 File No.

188 (3) Any synthetic intimate image described in subsection (a) of this section of such other person, if the dissemination of such image serves the public interest;

ThisLCO chapter39 also applies, except for the provisions of sections58 9-611Substitute toBill 9-620,No. inclusive, to persons who are candidates in a primary for town committee members.

2 This chapter also applies, except for the provisions of sections 9-611 to 9-620, inclusive, to persons who are candidates in a primary for town committee members.

(1) "Artificial intelligence" means a machine-based system that (A) can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, and (B) uses machine and human-based inputs to (i) perceive real and sSB2virtualenvironments, /(ii)abstract Filesuchperceptionsinto No.modelsthrough analysis in an automated manner, and (iii) formulate options for information or action through model inference;

188 39 sSB2 File No.

188 virtualenvironments, (ii)abstract suchperceptionsinto modelsthrough analysis in an automated manner, and (iii) formulate options for information or action through model inference;

(1) The person (A) knows such deceptive media depicts any human beingLCO engaging40 in speech or conduct in which such human being did notengage,and(B)indistributingsuchdeceptivemediaorenteringinto such agreement, intends to (i) harm thereputation or electoral prospects of a58 candidateSubstitute inBill theNo. primary or election, and (ii) change the voting behavior ofelectorsintheprimary or electionby deceiving such electors into incorrectly believing that the human being described in subparagraph (A) of this subdivision engaged in the speech or conduct described in said subparagraph;

2 being engaging in speech or conduct in which such human being did notengage,and(B)indistributingsuchdeceptivemediaorenteringinto such agreement, intends to (i) harm thereputation or electoral prospects of a candidate in the primary or election, and (2)(ii) Itchange isthe reasonablyvoting foreseeablebehavior ofelectorsintheprimary or electionby deceiving such electors into incorrectly believing that the distributionhuman willbeing described in subparagraph (A) harmof this subdivision engaged in the sSB2speech /or Fileconduct No.described in said subparagraph;

188and 40(2) sSB2It Fileis No.reasonably foreseeable that the distribution will (A) harm the reputation or electoral prospects of a candidate in the primary or election, and (B) change the voting behavior of electors in the primary or election in the manner set forth in subparagraph (B)(ii) of subdivision (1) of this subsection.

188 reputation or electoral prospects of a candidate in the primary or election, and (B) change the voting behavior of electors in the primary or election in the manner set forth in subparagraph (B)(ii) of subdivision (1) of this subsection.

(4)LCO If41 the deceptive media is an image, the deceptive media includes a disclaimer that (A) is clearly visible to, and readable by, the average viewer, (B)ifthemediacontainsother text,isinletters(i)at least aslarge as the majority of the58 otherSubstitute textBill includedNo. in the image, or (ii) if there is no other text included in the image, in a size that is easily readable by the average viewer, and (C) is in the same language otherwise used in such deceptive media;

2 (4) If the deceptive media is an image, the deceptive media includes a disclaimer that (A) is clearly visible to, and (5)Ifthedeceptivemediawasgeneratedbyeditinganexistingimage,readable sSB2by, /the Fileaverage No.viewer, (B)ifthemediacontainsother text,isinletters(i)at least aslarge as the majority of the other text included in the image, or (ii) if there is no other text included in the image, in a size that is easily readable by the average viewer, and (C) is in the same language otherwise used in such deceptive media;

188and 41(5)Ifthedeceptivemediawasgeneratedbyeditinganexistingimage, sSB2audio Fileor No.video, the deceptive media includes a disclaimer that includes a citation directing the viewer or listener to the original source from which the unedited version of such existing image, audio or video was obtained.

188 audio or video, the deceptive media includes a disclaimer that includes a citation directing the viewer or listener to the original source from which the unedited version of such existing image, audio or video was obtained.

(2) In any civil action commenced under subdivision (1) of this subsection,LCO the42 plaintiff shall bear the burden of proving,58 bySubstitute clearBill andNo. convincing evidence, that the defendant distributed deceptive media in violation of the provisions of this section.

2 subsection, the plaintiff shall bear the burden of proving, by clear and convincing evidence, that the defendant distributed deceptive media in violation of the provisions of this section.

sSB2(1) /"Artificial Fileintelligence" No.means any technology, including, but not limited to, machine learning, that uses data to train an algorithm or predictive model for the purpose of enabling a computer system or service to autonomously perform any task, including, but not limited to, visual perception, language processing or speech recognition, that is normally associated with human intelligence or perception;

188 42 sSB2 File No.

188 (1) "Artificial intelligence" means any technology, including, but not limited to, machine learning, that uses data to train an algorithm or predictive model for the purpose of enabling a computer system or service to autonomously perform any task, including, but not limited to, visual perception, language processing or speech recognition, that is normally associated with human intelligence or perception;

Each state agency shall prepare for any such incorporation with input from the state agency's employees, including, but not limited to, any applicable collective bargaining unit that represents its employees,LCO and43 appropriateof experts58 fromSubstitute civilBill societyNo. organizations, academia and industry.

2 employees, and appropriate experts from civil society organizations, academia and industry.

Any sSB2such /pilot Fileproject No.shall measure how generative artificial intelligence (1) improves Connecticut residents' experience with and access to government services, and (2) supports state agency employees in the performance of their duties in addition to any domain-specific impacts to be measured by the state agency.

188 43 sSB2 File No.

188 such pilot project shall measure how generative artificial intelligence (1) improves Connecticut residents' experience with and access to government services, and (2) supports state agency employees in the performance of their duties in addition to any domain-specific impacts to be measured by the state agency.

(1) "Artificial intelligence" means (A) an artificial system that (i) performs tasks under varying and unpredictable circumstances without significantLCO human44 oversight or can learn from experience and improve such performance when exposed to data sets, (ii) is developed in any context, including, but not limited to, software or physical hardware, and solves tasks requiring human-like perception, cognition, planning, learning, communication or physical action, or (iii) is designed to (I) think or act like a human, including, but not limited to, a cognitive architecture or neural network, or (II) act rationally, including, but not limited to, an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communication, decision-making or action, or (B) a set of techniques,58 including,Substitute butBill not sSB2 / File No.

1882 44significant sSB2human Fileoversight No.or can learn from experience and improve such performance when exposed to data sets, (ii) is developed in any context, including, but not limited to, software or physical hardware, and solves tasks requiring human-like perception, cognition, planning, learning, communication or physical action, or (iii) is designed to (I) think or act like a human, including, but not limited to, a cognitive architecture or neural network, or (II) act rationally, including, but not limited to, an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communication, decision-making or action, or (B) a set of techniques, including, but not limitedto,machinelearning,thatisdesigned toapproximateacognitive task;

188 limitedto,machinelearning,thatisdesigned toapproximateacognitive task;

(2) The [Department] Commissioner of Administrative Services shall makeLCO each45 inventory conducted pursuant to subdivision (1) of this58 subsectionSubstitute publiclyBill availableNo. on the state's open data portal.

2 make each inventory conducted pursuant to subdivision (1) of this subsection publicly available on the state's open data portal.

The [department] commissioner shall perform such assessment in accordance with the sSB2policies /and Fileprocedures No.established by the Office of Policy and Management pursuant to subsection (b) of section 4-68jj.

188 45 sSB2 File No.

188 policies and procedures established by the Office of Policy and Management pursuant to subsection (b) of section 4-68jj.

Subsection(b) ofsectionofsection4-124w 4-124w ofthe2024 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

(b) The department head of the Office of Workforce Strategy shall be the Chief Workforce Officer, who shall be appointed by the Governor in accordance with the provisions of sections 4-5 to 4-8, inclusive, with the powersandduties thereinprescribed.TheChiefWorkforce Officer shall be qualified by training and experience to perform the duties of the officeLCO as46 set forth in this section and shall have knowledge of publicly58 fundedworkforcetrainingprograms.TheSubstitute ChiefWorkforceOfficershall:Bill No.

2 office as set forth in this section and shall have knowledge of publicly fundedworkforcetrainingprograms.The ChiefWorkforceOfficershall:

(3) Be the chairperson of the Workforce Cabinet, which shall consist of agencies involved with employment and training, as designated by sSB2the /Governor Filepursuant No.to section 31-3m.

188 46 sSB2 File No.

188 the Governor pursuant to section 31-3m.

113-128, as amended from time to time, or (C) administered in collaboration with any state agency for the purpose of furthering the goals and outcomes ofLCO the47 state workforce strategy approved by the Governor pursuant to subdivision (5) of this58 subsectionSubstitute andBill theNo. workforce development plan developed by the Governor's Workforce Council pursuant to the provisions of section 31-11p;

2 of the state workforce strategy approved by the Governor pursuant to subdivision (5) of this subsection and the workforce development plan developed by the Governor's Workforce Council pursuant to the provisions of section 31-11p;

(8) Coordinate measurement and evaluation of outcomes across education and workforce development programs, in conjunction with sSB2state /agencies, Fileincluding, No.but not limited to, the Labor Department, the Department of Education and the Office of Policy and Management;

188 47 sSB2 File No.

188 state agencies, including, but not limited to, the Labor Department, the Department of Education and the Office of Policy and Management;

(13)LCO For48 the purposes of subsection58 (a)Substitute ofBill sectionNo. 10-21c identify subject areas, courses, curriculum, content and programs that may be offered to students in elementary and high school in order to improve student outcomes and meet the workforce needs of the state;

2 (13) For the purposes of subsection (a) of section 10-21c identify subject areas, courses, curriculum, content and programs that may be offered to students in elementary and high school in order to improve student outcomes and meet the workforce needs of the state;

Such guidance shall be approved by the SecretaryoftheOfficeofPolicyandManagement,allowforareasonable sSB2period /for Fileimplementation No.and take effect not less than thirty days from such approval.

188 48 sSB2 File No.

188 period for implementation and take effect not less than thirty days from such approval.

[and] (17) In consultation with the regional workforce development boards established under section 31-3k, the Department of Economic and CommunityDevelopmentCommunityDevelopmentandotherrelevantstateagencies,incorporate andotherrelevantstateagencies,incorporate training concerning artificial intelligence, as defined in section 23 of this act, into workforce training programs offered in this state;

(18) In consultation with the Department of Economic and Community Development, the Connecticut Academy of Science and Engineering, the Commission for Educational Technology established in section 4d-80 and broadband Internet access service providers, as definedLCO in49 section 16-330a, design an outreach program for the purpose of promoting58 accessSubstitute toBill broadbandNo. Internet access service, as defined in section 16-330a and in accordance with the state digital equity plan, in underserved communities in this state, and identify a nonprofit organization to implement and lead such outreach program under the supervision of the Chief Workforce Officer, the Department of Economic and Community Development, the Connecticut Academy of Science and Engineering and the Commission for Educational Technology;

2 defined in section 16-330a, design an outreach program for the purpose of promoting access to broadband Internet access service, as defined in section 16-330a and [(17)]in (19)accordance Takewith anythe otherstate actiondigital necessaryequity plan, in underserved communities in this state, and identify a nonprofit organization to carryimplement outand lead such outreach program under the provisionssupervision sSB2of /the FileChief No.Workforce Officer, the Department of Economic and Community Development, the Connecticut Academy of Science and Engineering and the Commission for Educational Technology;

188and 49[(17)] sSB2(19) FileTake No.any other action necessary to carry out the provisions of this section.

188 of this section.

(2) "Artificial intelligence system" means any machine-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including, but not limited to, content,LCO decisions,50 predictionsof or58 recommendations,Substitute thatBill canNo. influence physical or virtual environments;

2 content, decisions, predictions or recommendations, that can influence physical or virtual environments;

sSB2(4) /"Generative Fileartificial No.intelligence system" means any artificial intelligence system, including, but not limited to, a general-purpose artificial intelligence model, that is able to produce or manipulate synthetic digital content;

188 50 sSB2 File No.

188 (4) "Generative artificial intelligence system" means any artificial intelligence system, including, but not limited to, a general-purpose artificial intelligence model, that is able to produce or manipulate synthetic digital content;

(2) In collaboration with The University of Connecticut, establish a state-wideLCO research51 collaborative among health care providers to enable the development of advanced58 analytics,Substitute ethicalBill andNo. trustworthy artificial intelligence, as defined in section 23 of this act, and hands-on workforce education while using methods that protect patient privacy;

2 state-wide research collaborative among health care providers to enable the development of advanced analytics, ethical and trustworthy artificial intelligence, as defined in section 23 of this act, and hands-on workforce education while using methods that protect patient privacy;

sSB2Sec. / File No.

188 51 sSB2 File No.

188 Sec.

Subsection (a) of section 32-1c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):LCO 52 of 58 Substitute Bill No.

2 2024):

(4) to encourage and promote thedevelopment of industry and sSB2business /in Filethe No.state and to investigate, study and undertake ways and means of promoting and encouraging the prosperous development and protectionofthelegitimateinterestandwelfareofConnecticutbusiness, industry and commerce, within and outside the state;

188 52 sSB2 File No.

188 business in the state and to investigate, study and undertake ways and means of promoting and encouraging the prosperous development and protectionofthelegitimateinterestandwelfareofConnecticutbusiness, industry and commerce, within and outside the state;

(12) to appoint such assistants, experts, technicians and clerical staff, subjectLCO to53 the provisions of chapter58 67,Substitute asBill areNo. necessary to carry out the purposes of said chapters and sections;

2 subject to the provisions of chapter 67, as are necessary to carry out the purposes of said chapters and sections;

(16) to inquire into the utilizationof stategovernment resourcesand coordinate federaland state activities for assistance in and solution of problems of economic sSB2development /andto Fileinformandadvise No.theGovernor about andpropose legislation concerning such problems;

188 53 sSB2 File No.

188 development andto informandadvise theGovernor about andpropose legislation concerning such problems;

The inventory shall include information on all federal programs of financial assistance for defense conversion projects and other projects consistent with a defense conversion strategy and shallidentify businesseswhichbusinesseswhichwouldbeeligible wouldbeeligibleforfor suchassistance and provide notification to such business of such programs;

(23) with the approval of the Commissioner of Administrative Services, to reimburse any employee of the department, including the commissioner, for reasonable business expenses, including but not limited to, mileage, travel, lodging, and entertainment of business prospects and other persons to the extent necessaryLCO or54 advisable to carry out the purposes of subdivisions58 (4),Substitute (7),Bill (8)No. and (11) of this subsection and other provisions of this chapter;

2 necessary or advisable to carry out the purposes of subdivisions (4), (7), (8) and (11) of this subsection and other provisions of this chapter;

(25) (A) to serve as an information clearinghouse for various public and private programs available to assist businesses, and (B) to identify specific micro businesses, as defined in section 32-344, whose growth and success could benefit from state or private assistance and contact such small businesses in order to (i) identify their needs, (ii) provide information about public and private programs for meeting such needs, including, but not limited to, technical assistance, job training and financial assistance, and (iii) arrange for the provision of such assistance to such sSB2businesses; / File No.

188 54 sSB2 File No.

188 businesses;

(1) "Telehealth" means the mode of delivering health care or other health services via information and communication technologies to facilitate the diagnosis, consultation and treatment, education, care management and self-management of a patient's physical, oral and mental health, and includes (A) interaction between the patient at the originating site and the telehealth provider at a distant site, and (B) synchronous interactions, asynchronous store and forward transfers or remoteLCO patient55 monitoring.of 58 Substitute Bill No.

2 remote patient monitoring.

sSB2Sec. / File No.

188 55 sSB2 File No.

188 Sec.

Such report shall contain the results of the study conducted, and recommendations made, pursuant to subsection (b) of thisLCO section.56 of 58 Substitute Bill No.

2 this section.

9 October 1, 2024 New section sSB2Sec. / File No.

188 56 sSB2 File No.

188 Sec.

13 October 1, 2024 19a-490s October 1, 2024 Sec.

14 October 1, 2024 46a-64b(8) Sec.

20 from passage New section July 1, 2024 Sec.

21 July 1, 2024 4a-2e Sec.

30 from passage New section StatementGL ofJoint LegislativeFavorable Commissioners:Subst.

InJUD SectionJoint 1(1)(B)(ii),Favorable "or"LCO was57 addedof before58 "onSubstitute behalfBill of"No. for clarity;

in2 SectionLCO 1(3),58 "orof the58 availability" was changed to "or availability" for clarity;

in Section 2(b), "also" was added before "makes available" for clarity;

in Section 2(b)(2)(B)(vi), "a description of" was deleted for internal consistency;

in Section 3(g), "consumers" was changed to "any consumer" for clarity;

in Section 4(a)(2)(B)(iii), "what such general- purpose artificial intelligence model is designed to optimize for" was changed to "that for which such general-purpose artificial intelligence model is designed to optimize" for clarity;

in Section 5(a), "an artificial intelligence system" was changed to "any artificial intelligence system" for internal consistency;

in Sections 8(a)(1) and 8(a)(3), "ordinances or regulations" was changed to "law" for consistency;

in Section 8(a)(5), "the consumer" was changed to "a consumer" for internal consistency;

in Sections 9(c) and 9(c)(6), "an alleged violation" was changed to "a violation"and"alleged violation"waschanged to "violation"for internal consistency;

in Sections 11(d) and 11(d)(6), "alleged discriminatory practice" was changed to "discriminatory practice" and "alleged violation" was changed to "violation" for internal consistency;

in Section 11(f)(2), "violations" was changed to "violation and failure" for internal sSB2 / File No.

188 57 sSB2 File No.

188 consistency;

in Section 11(g), "or more" was changed to "and not more" for consistency;

in Section 19(f)(1), "a" was added before "candidate" for clarity;

in Section 21(d), "less than annually" was changed to "less frequentlythanannually"forclarity;inSection22(18),"saidsection"was changed to "section 16-330a" for clarity;

in Section 25(2), "the Department of Economic and Community Development and" was deleted for internal consistency;

and in Section 28(a)(25)(A), "and" was added before "(B)" for consistency with standard drafting conventions.

GL Joint Favorable Subst.

sSB2 / File No.

188 58 sSB2 File No.

188 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ Attorney General GF - Cost 480,000 640,000 Consumer Protection, Dept.

GF - Cost 207,000 252,000 Office of Workforce Strategy GF - Cost 100,000 100,000 State Comptroller - Fringe GF - Cost 462,000 548,000 Benefits1 Public Health, Dept.

GF - Cost 50,000- None 200,000 Board of Regents for Higher GF - Cost 50,000 50,000 Education Department of Administrative GF - Cost None Up to Services 25,000 Human Rights & Opportunities, GF - Potential 154,000 235,000 Com.

Cost State Comptroller - Fringe GF - Potential 63,000 85,000 Benefits2 Cost Resources of the General Fund GF - Potential Minimal Minimal Revenue Gain Judicial Dept.

(Probation);

GF - Potential Minimal Minimal Correction, Dept.

Cost Department of Economic & GF - Cost See below See below Community Development Note:

GF=General Fund Municipal Impact:

None Explanation 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.

2The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.

sSB2 / File No.

188 59 sSB2 File No.

188 The bill makes various changes regarding artificial intelligence resulting in the fiscal impacts described below.

Sections 1-9 create a regulatory structure for the artificial intelligence market and task the Office of the Attorney General (OAG) and the Department of Consumer Protection (DCP) with regulating and enforcing therequirementsofthebillresultingincoststobothagencies.

To meet the requirements of the bill DCP will have to hire three additional employees for a salary and other expenses cost of $207,000 in FY 25 and $252,000 in FY 26, along with associated fringe benefits costs of $78,000 in FY 25 and $104,000 in FY 26.

The additional employees are needed to regulate the market, monitor compliance, and receive and investigate complaints.

The OAG will require additional staffing to fulfill the bill's regulatory requirements related to the new and expanding field of artificial intelligence.

Due to the anticipated, potential workload requirements and technical expertise, up to seven additional staff members would be necessary, including:

three assistant attorneys general;

two IT specialists;

one program manager;

and one paralegal specialist.

The annualized personnel cost associated with these positions, including fringe benefits, is approximately $0.9 million.

Section 10 – 15 creates a new category of discriminatory practice and results in a potential cost of $154,000 in FY 25 and $235,000 in FY 26 to the Commission on Human Rights and Opportunities (CHRO) for two positions and $63,000 in FY 25 and $85,000 in FY 26 for fringe benefits to address anticipated complaints resulting from the bill.

The bill also results in potential revenue from fines assessed by 3Per section 9 of the bill, violations constitute an unfair trade practice which are investigated and enforced by the OAG and DCP.

4The new employees consist of two special investigators and one staff attorney.

5FY 25 costs reflect 9 months of salary due to the bill's October 1, 2024 effective date.

6Positions include one Human Rights Attorney 3 with an annual salary of $93,567 and an IT Analyst 3 with an annual salary of $111,475.

Also included is $30,000 for legal consultants with expertise in artificial intelligence.

sSB2 / File No.

188 60 sSB2 File No.

188 CHRO.

Fines can be between $3,000 and $7,000.

Section 16 establishes an Artificial Intelligence Advisory Council resulting in no fiscal impact to the state because the Council has the expertise to meet the requirements of the bill.

Sections 17 and 19 create new misdemeanors and felonies which resultinapotentialcost totheDepartmentofCorrectionandtheJudicial Department for incarceration or probation and a potential revenue gain from fines.

On average, the marginal cost to the state for incarcerating an offender for the year is $3,300 while the average marginal cost for supervision in the community is less than $800 each year for adults and $1,000 each year for juveniles.

Section 20, which requires DAS, in conjunction with state agencies, to submit a report to the legislature concerning potential uses of AI results in no fiscal impact.

Section 21, which requires DAS to develop and provide training to state employees on the use AI tools and mitigate potential issues by July 1, 2025, will provide a cost of less than $25,000 beginning in FY 26.

The cost has the potential to grow to less than $200,000 per year based on increased usage.

Section 22 results in an annualized cost of $137,125 by requiring the Office of Workforce Strategy (OWS) to design and implement an outreach program to promote broadband access service.

It is anticipated that OWS will require at least one full-time equivalent staff at a cost of $90,000 in salary and $37,125 in fringe costs plus an additional $10,000 in other expenses to administer and promote Inmate marginal cost is based on increased consumables (e.g., food, clothing, water, sewage, living supplies, etc.) This does not include a change in staffing costs or utility expenses because these would only be realized if a unit or facility opened.

8Probation marginal cost is based on services provided by private providers and only includes costs that increase with each additional participant.

This does not include a cost for additional supervision by a probation officer unless a new offense is anticipated to result in enough additional offenders to require additional probation officers.

sSB2 / File No.

188 61 sSB2 File No.

188 this program.

There is no anticipated cost to develop the program to the extent that the various agencies noted in the underlying bill as well as the Office of Telecommunications and Broadband in the Department of Energy and Environmental Protection, unnamed in the bill, may provide expertise on broadband access services.

Section 22 also requires OWS to incorporate AI training in workforce training programs.

There is no anticipated impact as OWS already collaboratestheirworkforcedevelopmentinitiativeswithprogramsthat provide high-skilled technology training opportunities such as the Tech Talent Accelerator.

Section 23 requires the Board of Regents (BOR) to establish the Connecticut Citizens Academy.

It is anticipated that this will result in a cost of approximately $50,000 annually, beginning in FY 26.

The annual costs are:

(1) Up to $25,000 for course development and formatting and (2) $25,000 for updating BOR’s existing Learning Management System and overseeing course registration.

Section 24 requires BOR to establish various AI certificate programs at CT State community college.

This is anticipated to result in aone-time cost, in FY 25, of less than $50,000 to create the various non-credit certificate programs, including curriculum development and IT upgrades.

Additionally, Section 24 could result in an annual revenue gain to BOR due to students paying to engage in the certificate coursework beginning in FY 26.

Non-credit course fees range from $40 - $200.

The corresponding revenue gain would be dependent on the set fee and number of participants.

Section 25 results in a cost of $132,125 annually to the Department of Economic and Community Development (DECD) to establish a state- wide research collaborative among health care providers to develop advanced AI with ethical considerations.

It is anticipated that DECD will require one full-time equivalent staff at an annualized cost of $90,000 in salary, $37,125 in fringe benefits, and $5,000 in other expenses to administer the collaborative.

sSB2 / File No.

188 62 sSB2 File No.

188 This section results in an additional one-time cost of $25,000 by requiring DECD to host the “CT AI Symposium” amongst academia, government and industry to establish and promote AI businesses in this state.

The actual cost will depend upon the number of participants and the location of the event.

This section also requires DECD to develop a plan to offer high- performance computing services to businesses and researchers in this state by December 1, 2024.

It is anticipated that DECD can develop the plan within existing resources.

Section26 resultsinacost to DECDto administer a competitive grant program to fund pilot studies regarding using AI to reduce health inequities in the state.

The bill caps each grant at $20,000 but does not limit the number of grants that may be awarded.

The actual cost will therefore be dependent upon the number of grants awarded.

In order to implement this program, it is anticipated that DECD will require 1.5 full-time equivalent staff at an annualized cost of $187,156 ($132,500 in salary and $54,656 in fringe).

This includes one economic development agent to administer the program and 0.5 fiscal administrative officer to process the grants.

Section27 resultsinacost toDECDto administer a competitive grant program to fund pilot programs on clinically integrating algorithms or utilizing virtual trainings.

The bill caps each grant at $75,000 but does not limit the number of grants that may be awarded.

The actual cost will therefore be dependent upon the number of grants awarded.

In order to implement this program, it is anticipated that DECD will require 1.5 full-time equivalent staff at an annualized cost of $187,156 ($132,500 in salary and $54,656 in fringe).

This includes one economic development agent to administer the program and 0.5 fiscal administrative officer to process the grants.

Section 28 has no fiscal impact by requiring DECD to designate an employee as a point of contact for economic development in AI.

The sSB2 / File No.

188 63 sSB2 File No.

188 Chief Innovation Officer (CIO) position within DECD should be able to act as point of contact in their capacity as CIO.

Section 30 results in a one-time FY 25 Department of Public Health cost estimated between $50,000 and $200,000 for a study of governance standards for the use of artificial intelligence by health care providers as the department lacks required expertise.

The Out Years The annualized ongoing fiscal impact identified above would continue into thefuture subject to employeewage increases, thenumber of fees and fines collected, the number of grants distributed, and inflation.

The costs associated with section 21 can grow to up to $200,000 per year based on increased usage.

The costs associated with section 24 are one-time and do not continue into the out years.

sSB2 / File No.

188 64 sSB2 File No.

188 OLR Bill Analysis sSB 2 AN ACT CONCERNING ARTIFICIAL INTELLIGENCE.

TABLE OF CONTENTS:

SUMMARY §§ 1-3 & 9-11 — REASONABLE CARE Requires each developer of any AI model or system and deployer of a high-risk AI system to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination;

deems a deployer’s failure to use reasonable care a discriminatory practice, subject to CHRO enforcement, including a fine of between $3,000 and $7,000;

provides certain affirmative defenses and an opportunity to correct violations for a year § 2 — DEVELOPERS Generally requires, beginning July 1, 2025,that any developer making a high-risk AI system available to a deployer provide the deployer a general statement describing the system’s intended uses and certain documentation that describes the system, other informationrelatedto riskmitigation,andastatementsummary;allowstheattorneygeneral and DCP commissioner to inspect these documents § 3 — DEPLOYERS Generally requiresdeployers,beginning July 1,2025,to (1)implement a risk management policy andprogrambefore deploying high-risk AI systems;

(2) complete an impact assessment on the system before deploying or after any intentional and substantial modification of it;

(3) review each deployed system at least annually to ensure the system is not causing algorithmic discrimination;

and (4) notify the attorney general or DCP commissioner within 90 days of discovering the system caused an algorithmic discrimination § 4 — GENERAL-PURPOSE AI MODEL DEVELOPER REQUIREMENTS Generally requires each developer of a general-purpose AI model, by January 1, 2026, to create, maintain, implement, and make available sSB2 / File No.

188 65 sSB2 File No.

188 certain technical documentation, information, policies, and summaries;

allows the attorney general or DCP commissioner to require developers disclose certain documents § 5 — PUBLIC DISCLOSURE REQUIREMENTS Generally requires anyone doing business in Connecticut who deploys an AI system that interacts with consumers to ensure the AI discloses to each consumer it interacts with that the consumer is interacting with an AI system §§ 6 & 7 — SYNTHETIC DIGITAL CONTENT Generally requires an AI system developer or deployer that generates or manipulates synthetic digital content to provide certain labels, technical solutions, or disclosures § 8 — ABILITY TO COMPLY WITH STATE OR FEDERAL LAWS OR TAKE CERTAIN OTHER ACTIONS Specifies that the bill’s requirements do not restrict a developer’s or deployer’sabilitytotakecertainactions(e.g.,complywithfederaland state law, cooperate with law enforcement, and engage in research) § 9 — ATTORNEY GENERAL AND DCP ENFORCEMENT Except for the CHRO enforcement actions described above, provides the attorney general and DCP commissioner exclusive authority to enforcetheAIprovisionslistedabove;requiresthemtoprovideaone- year grace period to allow violators an opportunity to cure violations;

provides certain affirmative defenses;

and deems violations CUTPA violations, but does not provide a private right of action §§ 10 & 12-15 — CHRO POWERS AND DUTIES Authorizes CHRO to require a deployer or its third-party contractor to provide the commission any completed impact assessment, beginning July 1, 2025 § 16 — AI ADVISORY COUNCIL Establishes a 23-member legislative AI Advisory Council to make recommendations to the General Law Committee and DECD commissioner on certain issues concerning AI, beginning by January 1, 2025 § 17 — UNLAWFUL DISSEMINATION OF AN INTIMATE IMAGE Establishes a new crime of unlawful dissemination of a synthetic intimate image;

makes it a class A misdemeanor if the image is disseminated to one person and a class D felony if it is disseminated to more than one through certain electronic means sSB2 / File No.

188 66 sSB2 File No.

188 §§ 18 & 19 — ELECTIONS AND DECEPTIVE AI MEDIA Generally prohibits anyone from distributing any deceptive media before an election or primary;

defines “deceptive media” as AI- produced media showing a person doing or saying something he or shedidnotdoorsaythatareasonablepersonwouldbelieve;provides several exemptions, including for images with disclaimers and for parodies and satires;

subjects violators to criminal penalties and civil remedies § 20 — STATE AGENCY STUDY OF AI Requires each state agency, in consultation with the labor unions, to study how generative AI may be incorporated in its processes to improve efficiencies;

requires each agency to submit a report on the study and potential pilot projects by January 1, 2025, which the DAS commissioner must assess;

requires the DAS commissioner to submit a legislative report on the pilot projects and recommendations on additional ones § 21 — STATE EMPLOYEE TRAINING Requires the DAS commissioner to (1) develop training for state agency employees on how to use certain generative AI tools and methods to identify and mitigate potential issues and (2) make these trainings available to state employees at least annually, beginning July 1, 2025 § 22 — OFFICE OF WORKFORCE STRATEGY Requires the chief workforce officer, in consultation with others, to (1) incorporate AI into workforce training programs and (2) design an outreach program to promote broadband Internet access § 23 — CONNECTICUT CITIZENS ACADEMY Requires BOR to establish a “Connecticut Citizens Academy” to offer online courses on AI and its responsible use and to award certificates and badges for completion § 24 — CERTIFICATE PROGRAMS Requires BOR to establish certificate programs for certain AI-related fields § 25 — DECD COLLABORATIONS Requires DECD, by December 31, 2024, in collaboration with various entities, to develop a plan to offer high-performance computing services, establish a statewide research collective, and conduct a “CT AI Symposium” sSB2 / File No.

188 67 sSB2 File No.

188 §§ 26 & 27 — PILOT STUDIES AND PROGRAMS Requires DECD to, within available appropriations, establish and administer grant programs to fund pilot studies and programs to reduce health inequities and integrate algorithms or use virtual training § 28 — DECD AI POINT OF CONTACT Requires the DECD commissioner to designate an employee as the primary point of contact for economic development in the AI field § 29 — REMOTE PATIENT MONITORING Defines what remote health monitoring means as a part of telehealth services under CMAP (i.e., Medicaid and HUSKY B) § 30 — HEALTH CARE AI STUDY Requires DPH to study and make recommendations on governance standards for health care providers who use AI BACKGROUND SUMMARY This bill establishes a framework for regulating artificial intelligence (AI) developers and deployers.

It requires them to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination (i.e., risks of any unjustified differential treatment or impact that disfavors any individual or group of individuals based on certain traits, such as age, ethnicity, or religion).

It deems a deployer’s failure to use reasonable care a discriminatory practice, subject to Commission on Human Rights and Opportunities (CHRO) enforcement, including a fine of between $3,000 and $7,000.

Beginning July 1, 2025, the bill requires, among other things:

1.

a developer to provide the deployer with a general statement describing thesystem’sintendedusesandcertaindocumentation that describes the system, other information related to risk mitigation, and a statement summary;

and 2.

deployers to (a) implement a risk management policy and program before deploying high-risk AI systems and (b) complete sSB2 / File No.

188 68 sSB2 File No.

188 animpactassessmentonthesystembeforedeployingorafterany intentional and substantial modification of it.

The bill also generally requires each developer of a general-purpose AI model, by January 1, 2026, to create, maintain, implement, and make available certain technical documentation, information, policies, and summaries.

It generally requires (1) anyone doing business in Connecticut who deploys an AI system that interacts with consumers to ensure the AI discloses to each consumer it interacts with that the consumer is interacting with an AI system and (2) an AI system developer or deployer that generates or manipulates synthetic digital content to provide certain labels, technical solutions, or disclosures.

Besides the CHRO enforcement actions described above, the bill provides the attorney general and the Department of Consumer Protection (DCP) commissioner exclusive authority to enforce the AI provisions.

It also deems violations Connecticut Unfair Trade Practices Act (CUTPA) violations, but does not provide a private right of action.

Additionally, the bill makes various other changes related to AI, including:

1.

establishing a newcrime ofunlawfuldisseminationofasynthetic intimate image;

2.

generally prohibiting anyone from distributing any deceptive media before an election or primary;

3.

establishing an advisory council and requiring various studies, including on health care providers using AI;

4.

requiring various agencies and higher education institutions to create certain trainings, certificate programs, and pilot programs.

Finally, unrelated to AI, the bill defines what remote health monitoring means as a part of telehealth services under the Connecticut sSB2 / File No.

188 69 sSB2 File No.

188 Medical Assistance Program (i.e., Medicaid and HUSKY B).

EFFECTIVE DATE:

October 1, 2024, except when otherwise provided.

§§ 1-3 & 9-11 — REASONABLE CARE Requires each developer of any AI model or system and deployer of a high-risk AI system to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination;

deems a deployer’s failure to use reasonable care a discriminatory practice, subject to CHRO enforcement, including a fine of between $3,000 and $7,000;

provides certain affirmative defenses and an opportunity to correct violations for a year Beginning July 1, 2025, the bill requires each developer of any AI modelorsystemanddeployerofahigh-riskAIsystemtousereasonable care to protect consumers (i.e., Connecticut residents) from any known or reasonably foreseeable risks of algorithmic discrimination.

An AI system is any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.

Under the bill, a “developer” is any person (i.e., individual, association,corporation,limitedliabilitycompany,partnership,trust,or other legal entity) doing business in this state who develops or intentionally and substantially modifies:

1.

a general-purpose AI model (i.e., any form of AI system that displays significant generality, is capable of competently performing a wide range of distinct tasks, and can be integrated into a variety ofdownstreamapplicationsor systems,but not any AI model used for developing, prototyping, and researching activities before the model is released to the market);

2.

a generative AI system (i.e., an AI system, such as a general- purpose AI model, that can produce or manipulate synthetic digital content);

or 3.

a high-risk AI system (i.e., any AI system specifically developed and marketed, or intentionally and substantially modified, to sSB2 / File No.

188 70 sSB2 File No.

188 make, or be a controlling factor in making, a consequential decision, which are decisions that have a material legal or similarly significant effect on a consumer’s ability to get access to, or the availability, costs, or terms of, any criminal justice remedy, education enrollment or opportunity, employment or employment opportunity, essential good or service, financial or lendingservice,essentialgovernmentservice,healthcareservice, housing, insurance, or legal service).

The bill defines “intentional and substantial modification” to mean any deliberate change made to:

1.

a generative AI system, other than a change made because of learning after the system has been deployed, that (a) affects the system’s compliance or (b) changes the system’s purpose;

or 2.

a high-risk AI system that creates, or potentially creates, any new risk of algorithmic discrimination.

A “deployer” is any person doing business in this state who deploys (i.e., uses) (1) a generative AI system, or (2) a high-risk AI system.

“Algorithmic discrimination” means any condition in which an AI system materially increases the risk of any unjustified differential treatment or impact that disfavors any individual or group of individuals based on their actual or perceived age, color, disability, ethnicity, genetic information, limited English language proficiency, national origin, race, religion, reproductive health, sex, veteran status, or other classification protected under Connecticut law.

It does not include:

1.

any offer, license, or use of an AI system by a developer or deployer for the sole purpose of (a) self-testing to identify, mitigate, or prevent discrimination or ensure compliance with state and federal law, or (b) expanding an applicant, customer, or participant pool to increase diversity or redress historic discrimination;

or sSB2 / File No.

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188 2.

any act or omission by or on behalf of a club or other establishment that is not open to the public as outlined in the federal Civil Rights Act of 1964 (42 U.S.C.

§ 2000a(e)).

Enforcement Under thebill, in any enforcement actiontheattorney generalor DCP commissioner bringsafter July 1,2025,there isarebuttablepresumption that a developer or deployer used reasonable care if the developer or deployer complied with the relevant requirements under the bill (see § 9below).Fordeployers,thisalsoappliestoenforcementactionsbrought by the Commission on Human Rights and Opportunities (CHRO).

Discriminatory Practice Notice to CHRO.

The bill requires the attorney general or DCP commissioner to notify CHRO, in a form and manner the attorney generalor commissioner prescribes,eachtime onecommencesan action against a deployer for failing to use reasonable care to protect consumers from algorithmic discrimination.

The notice must include the deployer’s name and any other relevant information required by the attorney general or commissioner, in consultation with CHRO.

Notice of and Opportunity to Correct Violations.

Under the bill, beginning July 1, 2025, it is a “discriminatory practice” under CHRO laws for a high-risk AI system deployer to fail to use reasonable care to protect any consumer from any known or reasonably foreseeable risks of algorithmic discrimination.

By doing this, the bill allows individuals aggrieved by these violations, or CHRO itself, to file a complaint with CHRO alleging discrimination.

Regardless of other CHRO laws, the bill generally requires CHRO to provide a grace period to give violators an opportunity to cure a violation between July 1, 2025, and June 30, 2026.

The bill requires the commission, before initiating any action for a violation of the deployer provisions, to issue a notice of violation to the deployer if it determines a cure is possible.

If the deployer fails to cure the violation within 60 days after receiving notice, CHRO may bring an action to enforce.

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188 Under the bill, by January 1, 2027, CHRO must submit a report to the General Law Committee disclosing:

1.

the number of notices of violations the commission issued, 2.

the nature of each violation, 3.

the number of violations cured within the 60-day period, and 4.

any other matters the commission deems relevant.

Violations After July 1, 2026.

BeginningonJuly1,2026,CHROmay, in determining whether to give a deployer the opportunity to cure an alleged discriminatory practice, consider:

1.

the number of violations, 2.

the deployer’s size and complexity and the nature and extent of its business, 3.

the substantial likelihood of injury to the public, 4.

the safety of individuals or property, and 5.

whether the alleged violation was likely caused by human or technical error.

Affirmative Defenses Under the bill, in any CHRO action for a discriminatory practice violation, it is an affirmative defense that the high-risk AI deployer implemented and maintains a program that complies with:

1.

the latest version of the “Artificial Intelligence Risk Management Framework” that the National Institute of Standards and Technology publishes or another nationally or internationally recognized risk management framework for AI systems;

2.

any AI risk management framework systems designated by the Banking or Insurance commissioners, if the deployer is regulated sSB2 / File No.

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188 by them;

or 3.

any AI risk management framework systems that the attorney general may designate.

Additionally, the deployer must also:

1.

encourage the high-risk AI system users to provide feedback to the deployer;

2.

discover any discriminatory practice violation (a) due to the feedback described above;

(b) through adversarial testing or red- teaming, as defined or used by the National Institute of Standards and Technology;

or (c) through an internal review process;

and 3.

within 60 days of discovering the violation, cure it and notify CHRO, in a commission-prescribed form and manner, that the violation has been cured and evidence that any harm the violation caused has been mitigated.

The deployer bears the burden of demonstrating to CHRO that the requirements for these affirmative defenses have been satisfied.

Generally, “adversarial testing” is a method for systematically evaluating a machine learning model with the intent of learning how it behaves when provided with malicious or inadvertently harmful input.

A “Red Team” means a group of people authorized and organized to simulate a potential adversary’s attack or exploitation capabilities against a security posture.

The Red Team’s objective is to improve cybersecurity by demonstrating theimpacts of successful attacks and by demonstrating what works for the defenders (i.e., the Blue Team) in an operational environment.

Prohibition on Certain Concurrent Actions The bill prohibits CHRO from taking any action against a deployer for a discriminatory practice if the attorney general or DCP commissioner has initiated an action against the deployer for failing to sSB2 / File No.