NY State Senate Bill 2023-S8214

Senate Bill S8214

2023-2024 Legislative Session

Relates to registration of certain companies whose primary business purpose is related to artificial intelligence

download bill text pdf

Current Bill Status - In Senate Committee Internet And Technology Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2024	print number 8214a
May 07, 2024	amend and recommit to internet and technology
Jan 12, 2024	referred to internet and technology

Bill Amendments

Original

A (Active)

2023-S8214 - Details

Current Committee:: Senate Internet And Technology
Law Section:: General Business Law
Laws Affected:: Add Art 2-A §§20 & 20-a, Gen Bus L

2023-S8214 - Summary

Requires the registration of certain companies whose primary business purpose is related to artificial intelligence as evidenced by their NAIC code.

2023-S8214 - Sponsor Memo

                                 
BILL NUMBER: S8214

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring the
registration of certain companies whose primary business purpose is
related to artificial intelligence

 
PURPOSE OR GENERAL IDEA OF BILL:

To require companies that create or sell artificial intelligence
products in the state to register with the Department of State.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one creates a new Article 2-A in the general business law
titled, "registration of certain artificial intelligence companies."
Under this section, companies whose North American Industry Classifica-
tion System (NAICS) Code is 541512, 334220, or 511210 and who reside in
New York or sell their products or services in New York will have to
register with the Department of State every 2 years. The fee for regis-

tration is $200. Failure to register can result in a fine of up to ten
thousand dollars. Companies that knowingly fail to register may be
barred from operating or selling their AI products or services in the
state for a period of up to ten years.

Section two is the effective date.

 
JUSTIFICATION:

Almost every industry utilizes artificial intelligence. The most popular
uses include the development of autonomous vehicles, facial recognition
software, virtual assistants, and chatbots. This massive increase in the
use of AI has the potential to improve our everyday lives, but it also
brings risks. What the government and the public know about existing AI
products is solely based on what the companies that create and market AI
products and services have chosen to disclose. The necessary first step
to understanding the benefits and potential risks that these models pose
is to gather basic information through registration. A registry will
allow regulators and the public to know who is building AI models and
who those models are marketed to.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.

2023-S8214 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8214
 
                             I N  S E N A T E
 
                             January 12, 2024
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general business law, in relation to  requiring  the
   registration  of  certain  companies whose primary business purpose is
   related to artificial intelligence
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 2-A to read as follows:
 
                                ARTICLE 2-A
         REGISTRATION OF CERTAIN ARTIFICIAL INTELLIGENCE COMPANIES
 
 SECTION 20.   REGISTRATION REQUIREMENTS.
         20-A. PENALTIES.
   §  20.  REGISTRATION  REQUIREMENTS.  1.  THE  SECRETARY OF STATE SHALL
 REQUIRE THE BIENNIAL REGISTRATION OF ANY COMPANY,  PARTNERSHIP,  LIMITED
 LIABILITY  COMPANY  OR CORPORATION WHOSE NORTH AMERICAN INDUSTRY CLASSI-
 FICATION SYSTEM (NAIC) CODE IS ANY OF THE FOLLOWING:
   (A) 541512;
   (B) 334220; OR
   (C) 511210.
   2. THIS SECTION SHALL APPLY TO ANY BUSINESS LOCATED IN THIS  STATE  OR
 WHICH SELLS PRODUCTS OR SERVICES IN THIS STATE.
   3.  THE  SECRETARY  OF STATE SHALL IMPOSE A FEE OF TWO HUNDRED DOLLARS
 FOR EACH BIANNUAL REGISTRATION.
   § 20-A. PENALTIES. A VIOLATION OF THIS ARTICLE SHALL BE PUNISHABLE  BY
 A FINE OF UP TO TEN THOUSAND DOLLARS. ADDITIONALLY, THE ATTORNEY GENERAL
 MAY  SEEK AN INJUNCTION TO BAR ANY COMPANY, PARTNERSHIP, LIMITED LIABIL-
 ITY COMPANY OR CORPORATION WHICH KNOWINGLY FAILS TO REGISTER PURSUANT TO
 THIS ARTICLE FROM  OPERATING  OR  SELLING  ANY  ARTIFICIAL  INTELLIGENCE
 PRODUCTS OR SERVICES IN THIS STATE FOR A PERIOD OF UP TO TEN YEARS.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13988-03-4

2023-S8214A (ACTIVE) - Details

Current Committee:: Senate Internet And Technology
Law Section:: General Business Law
Laws Affected:: Add Art 2-A §§20 & 20-a, Gen Bus L

2023-S8214A (ACTIVE) - Summary

Requires the registration of certain companies whose primary business purpose is related to artificial intelligence as evidenced by their NAIC code.

2023-S8214A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8214A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring the
registration of certain companies whose primary business purpose is
related to artificial intelligence

 
PURPOSE OR GENERAL IDEA OF BILL:

To require companies that create or sell artificial intelligence
products in the state to register with the Department of State.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one creates a new Article 2-A in the general business law
titled, "registration of certain artificial intelligence companies."
Under this section, companies whose North American Industry Classifica-
tion System (NAICS) Code is 541512, 334220, or 513210 and who reside in
New York or sell their products or services in New York will have to
register with the Department of State every 2 years. The fee for regis-

tration is $200. Failure to register can result in a fine of up to ten
thousand dollars. Companies that knowingly fail to register may be
barred from operating or selling their AI products or services in the
state for a period of up to ten years.

Section two is the effective date.

 
JUSTIFICATION:

Almost every industry utilizes artificial intelligence. The most popular
uses include the development of autonomous vehicles, facial recognition
software, virtual assistants, and chatbots. This massive increase in the
use of AI has the potential to improve our everyday lives, but it also
brings risks. What the government and the public know about existing AI
products is solely based on what the companies that create and market AI
products and services have chosen to disclose. The necessary first step
to understanding the benefits and potential risks that these models pose
is to gather basic information through registration. A registry will
allow regulators and the public to know who is building AI models and
who those models are marketed to.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.

2023-S8214A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8214--A
 
                             I N  S E N A T E
 
                             January 12, 2024
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to amend the general business law, in relation to requiring the
   registration of certain companies whose primary  business  purpose  is
   related to artificial intelligence
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 2-A to read as follows:
 
                                ARTICLE 2-A
         REGISTRATION OF CERTAIN ARTIFICIAL INTELLIGENCE COMPANIES
 
 SECTION 20.   REGISTRATION REQUIREMENTS.
         20-A. PENALTIES.
   § 20. REGISTRATION REQUIREMENTS.  1.  THE  SECRETARY  OF  STATE  SHALL
 REQUIRE  THE  BIENNIAL REGISTRATION OF ANY COMPANY, PARTNERSHIP, LIMITED
 LIABILITY COMPANY OR CORPORATION WHOSE NORTH AMERICAN  INDUSTRY  CLASSI-
 FICATION SYSTEM (NAIC) CODE IS ANY OF THE FOLLOWING:
   (A) 541512;
   (B) 334220; OR
   (C) 513210.
   2.  THIS  SECTION SHALL APPLY TO ANY BUSINESS LOCATED IN THIS STATE OR
 WHICH SELLS PRODUCTS OR SERVICES IN THIS STATE.
   3. THE SECRETARY OF STATE SHALL IMPOSE A FEE OF  TWO  HUNDRED  DOLLARS
 FOR EACH BIANNUAL REGISTRATION.
   §  20-A. PENALTIES. A VIOLATION OF THIS ARTICLE SHALL BE PUNISHABLE BY
 A FINE OF UP TO TEN THOUSAND DOLLARS. ADDITIONALLY, THE ATTORNEY GENERAL
 MAY SEEK AN INJUNCTION TO BAR ANY COMPANY, PARTNERSHIP, LIMITED  LIABIL-
 ITY COMPANY OR CORPORATION WHICH KNOWINGLY FAILS TO REGISTER PURSUANT TO
 THIS  ARTICLE  FROM  OPERATING  OR  SELLING  ANY ARTIFICIAL INTELLIGENCE
 PRODUCTS OR SERVICES IN THIS STATE FOR A PERIOD OF UP TO TEN YEARS.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13988-04-4

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