Utah Generative Artificial Intelligence -- Impact on liability for violation of consumer protection law.
Utah Code § 13-2-12
CITATION:
Utah Code
Title 13 - Commerce and Trade
Chapter 2 - Division of Consumer Protection
Section 12 - Generative artificial intelligence -- Impact on liability for violation of consumer protection law. (Effective 5/1/2024)
Effective 5/1/2024
13-2-12. Generative artificial intelligence -- Impact on liability for violation of consumer protection law.
(1) As used in this section:
(a) "Generative artificial intelligence" means an artificial system that:
(i) is trained on data;
(ii) interacts with a person using text, audio, or visual communication; and
(iii) generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight.
(b) "License" means a state-granted authorization for a person to engage in a specified occupation:
(i) based on the person meeting personal qualifications established under state law; and
(ii) where state law requires the authorization before the person may lawfully engage in the occupation for compensation.
(c) "Regulated occupation" means an occupation regulated by the Department of Commerce that requires a person to obtain a license or state certification to practice the occupation.
(d) "State certification" means a state-granted authorization given to a person to use the term "state certified" as part of a designated title related to engaging in a specified occupation:
(i) based on the person meeting personal qualifications established under state law; and
(ii) where state law prohibits a noncertified person from using the term "state certified" as part of a designated title but does not otherwise prohibit a noncertified person from engaging in the occupation for compensation.
(2) It is not a defense to the violation of any statute administered and enforced by the division, as described in Section 13-2-1, that generative artificial intelligence:
(a) made the violative statement;
(b) undertook the violative act; or
(c) was used in furtherance of the violation.
(3) A person who uses, prompts, or otherwise causes generative artificial intelligence to interact with a person in connection with any act administered and enforced by the division, as described in Section 13-2-1, shall clearly and conspicuously disclose to the person with whom the generative artificial intelligence interacts, if asked or prompted by the person, that the person is interacting with generative artificial intelligence and not a human.
(4)
(a) A person who provides the services of a regulated occupation shall prominently disclose when a person is interacting with a generative artificial intelligence in the provision of regulated services.
(b) Nothing in this section permits a person to provide the services of a regulated occupation through generative artificial intelligence without meeting the requirements of the regulated occupation.
(5) A disclosure described Subsection (4)(a) shall be provided:
(a) verbally at the start of an oral exchange or conversation; and
(b) through electronic messaging before a written exchange.
(6) The division shall administer and enforce the provisions of this section in accordance with Chapter 2, Division of Consumer Protection.
(7) In addition to the division's enforcement powers described by Chapter 2, Division of Consumer Protection:
(a) the division director may impose an administrative fine for up to $2,500 for each violation of this section; and
(b) the division may bring an action in court to enforce a provision of this section.
(8) In a court action by the division to enforce a provision of this section, the court may:
(a) declare that an act or practice violates a provision of this section;
(b) issue an injunction for a violation of this section;
(c) order disgorgement of any money received in violation of this section;
(d) order payment of disgorged money to a person injured by a violation of this section;
(e) impose a fine of up to $2,500 for each violation of this section; or
(f) award any other relief that the court deems reasonable and necessary.
(9) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:
(a) reasonable attorney fees;
(b) court costs; and
(c) investigative fees.
(10)
(a) A person who violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.
(b) A civil penalty authorized under this section may be imposed in any civil action brought by the attorney general on behalf of the division.
Enacted by Chapter 186, 2024 General Session
Utah Artificial Intelligence Policy Act
Utah Code § 13-72-101, et seq.
CITATION:
Utah Code
Title 13 - Commerce and Trade
Chapter 72 - Artificial Intelligence Policy Act (Effective 5/1/2024)
Part 1 - General Provisions
Part 2 - Office of Artificial Intelligence Policy
Part 3 - Artificial Intelligence Learning Laboratory Program
Effective 5/1/2024
13-72-101. Definitions.
As used in this chapter:
(1) "Applicant" means a person that applies for participation in the regulatory learning laboratory.
(2) "Artificial intelligence" means a machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments.
(3) "Artificial intelligence technology" means a computer system, application, or other product that uses or incorporates one or more forms of artificial intelligence.
(4) "Department" means the Department of Commerce.
(5) "Director" means the director of the office.
(6) "Executive director" means the executive director of the Department of Commerce.
(7) "Learning agenda" means the areas of artificial intelligence applications, risks, and policy considerations selected by the office for focus by the learning laboratory.
(8) "Learning laboratory" means the artificial intelligence analysis and research program created in Section 13-72-301.
(9) "Office" means the Office of Artificial Intelligence Policy created in Section 13-74-201.
(10) "Participant" means a person that is accepted to participate in the learning laboratory.
(11) "Regulatory mitigation agreement" means an agreement between a participant, the office, and relevant state agencies described in Section 13-72-302.
(12) "Regulatory mitigation" means:
(a) when restitution to users may be required;
(b) terms and conditions related to any cure period before penalties may be assessed;
(c) any reduced civil fines during the participation term; and
(d) other terms tailored to identified issues of the artificial intelligence technology.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-201. Creation of Office of Artificial Intelligence Policy -- Director appointed -- Duties and authority.
(1) There is created in the department the Office of Artificial Intelligence Policy.
(2) The executive director of the department shall appoint a director to oversee the management and operations of the office.
(3) The office shall:
(a) create and administer an artificial intelligence learning laboratory program;
(b) consult with businesses and other stakeholders in the state about potential regulatory proposals;
(c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing:
(i) procedures, requirements, and fees to apply to participate in the learning laboratory program;
(ii) criteria for invitation, acceptance, denial, or removal of participants;
(iii) data usage limitations and cybersecurity criteria for participants;
(iv) required participant disclosures to consumers;
(v) reporting requirements for participants to the office;
(vi) criteria for limited extension of the participation period; and
(vii) other requirements necessary to administer the learning laboratory; and
(d) report annually, before November 30, to the Business and Labor Interim Committee regarding:
(i) the proposed learning agenda for the learning laboratory;
(ii) the findings, participation, and outcomes of the learning laboratory; and
(iii) recommended legislation from findings from the learning laboratory.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-301. Artificial Intelligence Learning Laboratory Program.
(1) There is established the Artificial Intelligence Learning Laboratory Program, to be administered by the office.
(2) The purpose of the learning laboratory is to:
(a) analyze and research the risks, benefits, impacts, and policy implications of artificial intelligence technologies to inform the state regulatory framework;
(b) encourage development of artificial intelligence technologies in the state;
(c) evaluate the effectiveness and viability of current, potential, or proposed regulation on artificial intelligence technologies with artificial intelligence companies; and
(d) produce findings and recommendations for legislation and regulation of artificial intelligence.
(3)
(a) The office shall periodically set a learning agenda for the learning laboratory that establishes the specific areas of artificial intelligence policy the office intends to study.
(b) In establishing the learning agenda, the office may consult with:
(i) relevant agencies;
(ii) industry leaders;
(iii) academic institutions in the state; and
(iv) key stakeholders with relevant knowledge, experience, or expertise in the area.
(4) The office may invite and receive an application from a person to participate in the learning laboratory.
(5) The office shall establish the procedures and requirements for sending an invitation and receiving requests to participate in the learning laboratory in accordance with the purposes of the learning laboratory.
(6) In selecting participants for the learning laboratory, the office shall consider:
(a) the relevance and utility of an invitee or applicant's artificial intelligence technology to the learning agenda;
(b) the invitee or applicant's expertise and knowledge specific to the learning agenda; and
(c) other factors identified by the office as relevant to participation in the learning laboratory.
(7) The office shall work with participants to establish benchmarks and assess outcomes of participation in the learning laboratory.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-302. Regulatory mitigation agreements.
(1) A participant who uses or wants to utilize an artificial intelligence technology in the state may apply for regulatory mitigation according to criteria and procedures outlined by the office by rule made under Section 13-72-201.
(2) The office may grant, on a temporary basis, regulatory mitigation to a participant by entering into a regulatory mitigation agreement with the office and relevant agencies.
(3) To receive regulatory mitigation, a participant must demonstrate that the applicant meets eligibility criteria established in Section 13-72-303.
(4) A regulatory mitigation agreement between a participant and the office and relevant agencies shall specify:
(a) limitations on scope of the use of the participant's artificial intelligence technology, including:
(i) the number and types of users;
(ii) geographic limitations; and
(iii) other limitations to implementation;
(b) safeguards to be implemented; and
(c) any regulatory mitigation granted to the applicant.
(5) The office shall consult with relevant agencies regarding appropriate terms in a regulatory mitigation agreement.
(6) A participant remains subject to all legal and regulatory requirements not expressly waived or modified by the terms of the regulatory mitigation agreement.
(7)
(a) The office may remove a participant at any time and for any reason, and the participant does not have an expectation of a property right or license to participate in the learning laboratory.
(b) A participant demonstrating an artificial intelligence technology that violates legal or regulatory requirements or the terms of the participation agreement may be immediately removed from further participation and subject to all applicable civil and criminal penalties.
(8) Participation in the learning laboratory does not constitute an endorsement or approval from the state.
(9) The state shall not be responsible for any claims, liabilities, damages, losses, or expenses arising out of a participant's involvement in the learning laboratory.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-303. Regulatory mitigation eligibility requirements -- Application evaluation and admission.
(1) To be eligible for regulatory mitigation, a participant shall demonstrate to the office that:
(a) the participant has the technical expertise and capability to responsibly develop and test the proposed artificial intelligence technology;
(b) the participant has sufficient financial resources to meet obligations during testing;
(c) the artificial intelligence technology provides potential substantial consumer benefits that may outweigh identified risks from mitigated enforcement of regulations;
(d) the participant has an effective plan to monitor and minimize identified risks from testing; and
(e) the scale, scope, and duration of proposed testing is appropriately limited based on risk assessments.
(2) To evaluate whether an applicant meets eligibility criteria to receive regulatory mitigation, the office may consult with relevant agencies and outside experts regarding the application.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-304. Participation in Artificial Intelligence Learning Laboratory.
(1)
(a) The office may approve an applicant to participate in the program.
(b) An approved applicant becomes a participant by entering into a participation agreement with the office and relevant state agencies.
(2) A participant shall:
(a) provide required information to state agencies in accordance with the terms of the participation agreement; and
(b) report to the office as required in the participation agreement.
(3) The office may establish additional cybersecurity auditing procedures applicable to participants demonstrating artificial intelligence technologies that the office considers higher risk.
(4) A participant shall retain records as required by office rule or the participation agreement.
(5) A participant shall immediately report to the office any incidents resulting in consumer harm, privacy breach, or unauthorized data usage, which may result in removal of the participant from the learning laboratory.
Enacted by Chapter 186, 2024 General Session
Effective 5/1/2024
13-72-305. Program extension.
(1) An initial regulatory mitigation agreement shall be in force for no longer than 12 months.
(2) A participant may request a single 12-month extension for participation in the learning laboratory period no later than 30 days before the end of the initial 12-month period.
(3) The office shall grant or deny an extension request before expiration of the initial demonstration period.
Enacted by Chapter 186, 2024 General Session
For more information, see here: https://le.utah.gov/xcode/Title13/Chapter2/13-2-S12.html?v=C13-2-S12_2024050120240501
AND
https://le.utah.gov/xcode/Title13/Chapter72/13-72.html?v=C13-72_2024050120240501
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