House Committee of Reference Report
Committee on Business Affairs & Labor
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All text that will be removed from the bill will be indicated by strikethrough as follows:
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This is text that is removed from law. -
Text that is added to a bill will be indicated by either all capitals or bold & italic as follows:
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March 26, 2026
After consideration on the merits, the Committee recommends the following:
HB26-1263 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend printed bill, page 2, line 2, after "(4.5)," insert "(7.5), (9.5),".
Page 1, Line 2Page 2, line 9, after "through" insert "adaptive".
Page 1, Line 3Page 2, strike line 10 and substitute "communications and uses
Page 1, Line 4emotional recognition algorithms to recognize, interpret, or
Page 1, Line 5respond to human emotions.".
Page 1, Line 6Page 3, strike line 3 and substitute "program that does not utilize
Page 1, Line 7emotional recognition algorithms and that:".
Page 1, Line 8Page 3, strike lines 6 through 8 and substitute:
Page 1, Line 9"(II) Is primarily designed to provide commerce-related or
Page 1, Line 10transactional assistance, including product or service
Page 1, Line 11recommendations, shopping, ordering, payments, delivery,
Page 1, Line 12returns, customer support, or customer service;".
Page 1, Line 13Page 3, line 12, strike "entities;" and substitute "entities for the
Page 1, Line 14purpose of business operations, productivity, information
Page 1, Line 15analysis, internal research, training, or technical assistance;".
Page 1, Line 16Page 3, line 15, strike "or".
Page 1, Line 17Page 3, line 16, strike "purposes." and substitute "purposes;
Page 1, Line 18(VII) Is primarily designed for assisting or supporting
Page 1, Line 19patient or resident care services in a facility and complies with
Page 1, Line 20HIPAA privacy and security requirements;
Page 2, Line 1(VIII) Is a feature of a video game that is limited to
Page 2, Line 2dialogue focused on the video game and does not maintain
Page 2, Line 3dialogue on topics unrelated to the video game; or
Page 2, Line 4(IX) Is a feature of a theme park or location-based
Page 2, Line 5entertainment and is limited in dialogue to topics solely related
Page 2, Line 6to the theme park or location-based entertainment and does not
Page 2, Line 7maintain a dialogue about topics unrelated to the theme park or
Page 2, Line 8location-based entertainment.".
Page 2, Line 9Page 3, after line 16 insert:
Page 2, Line 10"(7.5) "Emotional recognition algorithm" means artificial
Page 2, Line 11intelligence that detects and interprets human emotional
Page 2, Line 12signals in text using natural language processing and sentiment
Page 2, Line 13analysis, gait analysis, or physiological signals, or a
Page 2, Line 14combination of those data processing tools.
Page 2, Line 15(9.5) "HIPAA" means the federal "Health Insurance
Page 2, Line 16Portability and Accountability Act of 1996", 42 U.S.C. secs.
Page 2, Line 171320d to 1320d-9.".
Page 2, Line 18Page 4, strike line 7 and substitute "operator duties - minor account
Page 2, Line 19holders - disclosures - annual reporting - definitions.
Page 2, Line 20(1) Definitions. As used in this section, unless the context
Page 2, Line 21otherwise requires:
Page 2, Line 22(a) "Account holder" means a consumer who has or opens
Page 2, Line 23an account or profile for the purpose of using a conversational
Page 2, Line 24artificial intelligence service.
Page 2, Line 25(b) "Minor account holder" means an account holder who
Page 2, Line 26is a minor.".
Page 2, Line 27Renumber succeeding subsections accordingly.
Page 2, Line 28Page 4, line 8, strike "users." and substitute "account holders. An
Page 2, Line 29operator shall use commercially reasonable methods to
Page 2, Line 30estimate the age of account holders.
Page 2, Line 31Page 4, lines 9 and 10, strike "a user of a conversational artificial
Page 2, Line 32intelligence service" and substitute "an account holder".
Page 2, Line 33Page 4, line 14, after "disclosure" insert "must be provided in
Page 2, Line 34response to user prompts regarding whether the conversational
Page 2, Line 35artificial intelligence service is human or artificially sentient
Page 2, Line 36and".
Page 2, Line 37
Page 3, Line 1Page 4, line 16, strike "disclaimer;" and substitute "disclaimer for a
Page 3, Line 2product with a screen interface;
Page 3, Line 3(II) An intermittent audio disclaimer for a product
Page 3, Line 4without a screen interface; or".
Page 3, Line 5Page 4, line 17, strike "(II)" and substitute "(III)".
Page 3, Line 6Page 4, line 18, strike "appear" and substitute "occur".
Page 3, Line 7Page 4, line 20, strike "or".
Page 3, Line 8Page 4, strike lines 21 through 23.
Page 3, Line 9Page 5, lines 10 and 11, strike "generating a statement" and substitute
Page 3, Line 10"formulating, structuring, or optimizing a response".
Page 3, Line 11Page 5, line 11, strike "dependence," and substitute "dependence or
Page 3, Line 12isolation from real-world supports,".
Page 3, Line 13Page 5, strike line 24 and substitute "service retains information
Page 3, Line 14from prior interactions or sessions".
Page 3, Line 15Page 6, line 7, strike "settings as" and substitute "settings.".
Page 3, Line 16Page 6, strike line 8.
Page 3, Line 17Page 6, line 9, strike "if".
Page 3, Line 18Page 6, strike lines 10 through 12 and substitute "an operator".
Page 3, Line 19Page 6, line 13, strike "the person that the" and substitute "a user
Page 3, Line 20that a".
Page 3, Line 21Page 7, strike lines 1 and 2 and substitute "protocol must include user
Page 3, Line 22referral to a crisis service provider such as".
Page 3, Line 23Page 7, line 6, after "not" insert "knowingly and recklessly".
Page 3, Line 24Page 7, line 8, strike "indicates or implies" and substitute "states".
Page 3, Line 25Page 7, line 13, after "professional;" add "or"
Page 3, Line 26Page 7, strike lines 14 and 15 and substitute:
Page 4, Line 1"(c) A licensed, certified, or registered mental health
Page 4, Line 2professional.".
Page 4, Line 3Page 7, line 25, strike "and".
Page 4, Line 4Page 8, line 1, strike "actions." and substitute "actions; and
Page 4, Line 5(IV) Any additional metrics necessary to determine the
Page 4, Line 6efficacy and reliability of implemented safeguards or detection,
Page 4, Line 7removal, and response protocols, as determined by the attorney
Page 4, Line 8general.".
Page 4, Line 9Page 8, strike lines 12 through 15 and substitute:
Page 4, Line 10"(7) Liability. Nothing in this section creates liability for
Page 4, Line 11a developer of an underlying artificial intelligence model for
Page 4, Line 12a violation of this section by a third-party operator that makes
Page 4, Line 13publicly available a conversational artificial intelligence
Page 4, Line 14service that uses the underlying artificial intelligence model.
Page 4, Line 15A developer of an underlying artificial intelligence model that
Page 4, Line 16is also an operator of a conversational artificial intelligence
Page 4, Line 17service is subject to liability for a violation of this section.
Page 4, Line 18(8) Access to information. Nothing in this section limits an
Page 4, Line 19individual's ability to access information and resources under
Page 4, Line 20section 32 of article II of the state constitution and part 4 of
Page 4, Line 21article 6 of title 25.".
Page 4, Line 22Strike "user" and substitute "account holder" on: Page 4, lines 12, 13,
Page 4, Line 23and 24; Page 5, lines 5, 8, and 21; and Page 6, lines 2, 3, 5, and 6.
Page 4, Line 24Strike "user's" and substitute "account holder's" on: Page 5, lines 22
Page 4, Line 25and 27; and Page 6, lines 4 and 7.
Page 4, Line 26Strike "(5)(a)" and substitute "(6)(a)" on: Page 8, lines 2, 7, and 9.
Page 4, Line 27