HOUSE BILL 28

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Christine Chandler

 

 

 

 

 

AN ACT

RELATING TO CONSUMER PROTECTION; ENACTING THE ARTIFICIAL INTELLIGENCE TRANSPARENCY ACT; REQUIRING NOTICE OF USE AND AN OPPORTUNITY TO APPEAL IN MATTERS CONCERNING CONSEQUENTIAL DECISIONS; REQUIRING NOTICE DURING USE OF COMPANION PRODUCTS; PROVIDING FOR ENFORCEMENT AND CIVIL ACTIONS FOR INJUNCTIVE OR DECLARATORY RELIEF.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Artificial Intelligence Transparency Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Artificial Intelligence Transparency Act:

          A. "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;

          B. "companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;

          C. "consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of:

                (1) education enrollment;

                (2) employment or an employment opportunity;

                (3) a financial or lending service;

                (4) housing;

                (5) health care service;

                (6) insurance; or

                (7) legal service;

          D. "consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;

          E. "department" means the state department of justice;

          F. "deploy" means to put into effect, host or otherwise commercialize an artificial intelligence system or a companion product;

          G. "deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;

          H. "developer" means a person doing business in New Mexico that:

                (1) makes an artificial intelligence system publicly available for use in New Mexico; or

                (2) intentionally and substantially modifies an artificial intelligence system that is used in New Mexico;

          I. "generative artificial intelligence" means an artificial intelligence system that learns the patterns and structure of the artificial intelligence system's input training data and then generates new data that have similar characteristics;

          J. "interactive session" means a dialogue between a human user and a companion product;

          K. "machine learning" means the development and incorporation of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction; and

          L. "substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.

     SECTION 3. [NEW MATERIAL] USE OF ARTIFICIAL INTELLIGENCE SYSTEMS WHEN MAKING CONSEQUENTIAL DECISIONS--NOTICE--ADVERSE CONSEQUENTIAL DECISIONS--OPPORTUNITY FOR APPEAL.--

          A. Before an artificial intelligence system is used to generate a substantial factor or make a consequential decision concerning a consumer, a deployer shall provide notice directly to the consumer that the system will be used to make or generate a substantial factor to be used in making the decision. The notice shall include the name of the developer, trade name, version number or other information that distinctly identifies the artificial intelligence system and the deployer's contact information.

          B. When an artificial intelligence system has been used to generate a substantial factor or make a consequential decision concerning a consumer that is adverse to the consumer, the deployer shall provide directly to the consumer:

                (1) a statement explaining:

                     (a) the principal reasons for the consequential decision and the specific facts or data about the consumer or the consumer's application that most influenced the consequential decision;

                     (b) the degree and manner in which the system contributed to and the level of human oversight used in making the consequential decision; and

                     (c) the source and type of data that was processed by the system to generate a substantial factor;

                (2) an opportunity to correct any incorrect personal data that was used to generate a substantial factor; and

                (3) an opportunity to appeal the adverse consequential decision.

          C. An appeal of an adverse consequential decision by a consumer shall be reviewed by a human being.

          D. All information, notices and statements to a consumer shall be provided:

                (1) in plain language and in all languages in which the deployer in the ordinary course of business provides contracts, disclaimers, sale announcements and other information to users of its products or services; and

                (2) in a format that is accessible to consumers with disabilities.

     SECTION 4. [NEW MATERIAL] USE OF COMPANION PRODUCTS--USER NOTICE.--

          A. At the beginning of each interactive session in which a person uses a companion product, the companion product shall provide directly to the person a notice that the companion product is an artificial intelligence system. The notice shall be provided in a manner distinct from the format that the product uses for the interactive session and shall be:

                (1) presented in plain language and in all languages in which the deployer of the companion product in the ordinary course of business provides contracts, disclaimers, sale announcements and other information to users of its products or services;

                (2) presented conspicuously, legibly and persistently in the user interface for text-based interactive sessions;

                (3) presented a minimum of once every thirty minutes for a duration of no less than thirty seconds for interactive sessions that are not text-based; and

                (4) in a format that is accessible to persons with disabilities.

          B. A companion product shall not represent itself as a human being or make material misrepresentations about the companion product's identity, capabilities, professional certifications or training data.

     SECTION 5. [NEW MATERIAL] ENFORCEMENT--DEPARTMENT--OPPORTUNITY TO CURE--CIVIL ACTIONS.--

          A. The department shall have authority to enforce the provisions of the Artificial Intelligence Transparency Act. A consumer affected by the use of an artificial intelligence system or deployment of a companion product in New Mexico may bring a civil action in district court against a developer or deployer for declaratory or injunctive relief and attorney fees for a violation of that act.

          B. Nothing in the Artificial Intelligence Transparency Act preempts or otherwise affects any right, claim, remedy, presumption or defense available in law or equity.

          C. A violation of the Artificial Intelligence Transparency Act is an unfair or deceptive trade practice and may be enforced in the manner provided in the Unfair Practices Act.

     SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.

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