Connecticut 2025 2025 Regular Session

Connecticut Senate Bill SB01249 Comm Sub / Bill

Filed 04/09/2025

                     
 
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General Assembly  Substitute Bill No. 1249  
January Session, 2025 
 
 
 
AN ACT ADDRESSING INNOVATIONS IN ARTIFICIAL INTELLIGENCE.  
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Section 4-67p of the general statutes is repealed and the 1 
following is substituted in lieu thereof (Effective July 1, 2025): 2 
(a) The Secretary of the Office of Policy and Management shall 3 
designate an employee of the Office of Policy and Management to serve 4 
as Chief Data Officer. The Chief Data Officer shall be responsible for (1) 5 
directing executive branch agencies on the use and management of data 6 
to enhance the efficiency and effectiveness of state programs and 7 
policies, (2) facilitating the sharing and use of executive branch agency 8 
data (A) between executive branch agencies, and (B) with the public, (3) 9 
coordinating data analytics and transparency master planning for 10 
executive branch agencies, and (4) creating the state data plan in 11 
accordance with subsection (c) of this section. The Chief Data Officer 12 
shall carry out the responsibilities set forth in subdivisions (1) to (3), 13 
inclusive, of this subsection in accordance with the state data plan 14 
created pursuant to subsection (c) of this section. 15 
(b) Each executive branch agency shall designate an employee of the 16 
agency to serve as the agency data officer, who shall be responsible for 17 
implementing the provisions of this section and who shall serve as the 18 
main contact person for inquiries, requests or concerns regarding access 19 
to the data of such agency. The agency data officer, in consultation with 20  Substitute Bill No. 1249 
 
 
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the Chief Data Officer and the executive agency head, shall establish 21 
procedures to ensure that requests for data that the agency receives are 22 
complied with in an appropriate and prompt manner.  23 
(c) Not later than December 31, 2018, and every two years thereafter, 24 
the Chief Data Officer, in consultation with the agency data officers and 25 
executive branch agency heads, shall create a state data plan. The state 26 
data plan shall (1) establish management and data analysis standards 27 
across all executive branch agencies, (2) include specific, achievable 28 
goals within the two years following adoption of such plan, as well as 29 
longer term goals, (3) make recommendations to enhance 30 
standardization and integration of data systems and data management 31 
practices across all executive branch agencies, (4) provide a timeline for 32 
a review of any state or federal legal concerns or other obstacles to the 33 
internal sharing of data among agencies, including security and privacy 34 
concerns, and (5) set goals for improving the online repository 35 
established pursuant to subsection (i) of this section. Each state data 36 
plan shall provide for a procedure for each agency head to report to the 37 
Chief Data Officer regarding the agency's progress toward achieving the 38 
plan's goals. Such plan may make recommendations concerning data 39 
management for the legislative or judicial branch agencies, but such 40 
recommendations shall not be binding on such agencies. 41 
(d) The Chief Data Officer shall submit a preliminary draft of such 42 
plan to the Connecticut Data Analysis Technology Advisory Board 43 
established under section 2-79e not later than November 1, 2018, and 44 
every two years thereafter. Said board shall hold a public hearing on 45 
such draft and shall submit any suggested revisions to the Chief Data 46 
Officer not later than thirty days after receipt of such draft. 47 
(e) After the public hearing and if applicable, receiving any 48 
recommended revisions from the board, the Chief Data Officer shall 49 
finalize such plan and submit the final plan to the board. The Chief Data 50 
Officer shall send a copy of the final state data plan to all agency data 51 
officers and shall post such plan on the Internet web site of the Office of 52 
Policy and Management.  53  Substitute Bill No. 1249 
 
 
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(f) Information technology-related actions and initiatives of all 54 
executive branch agencies, including, but not limited to, the acquisition 55 
of hardware and software and the development of software, shall be 56 
consistent with the final state data plan. 57 
(g) On or before December 31, 2018, and not less than annually 58 
thereafter, each executive branch agency shall conduct an inventory of 59 
any high value data that is collected or possessed by the agency. Such 60 
inventory shall be in a form prescribed by the Chief Data Officer. In 61 
conducting such inventory, data shall be presumed to be public data 62 
unless otherwise classified by federal or state law or regulation. On or 63 
before December 31, 2018, and not less than annually thereafter, each 64 
executive branch agency shall submit such inventory to the Chief Data 65 
Officer and the Connecticut Data Analysis Technology Advisory Board. 66 
(h) Each executive branch agency shall develop an open data access 67 
plan. Such plan shall be in a form prescribed by the Office of Policy and 68 
Management and shall detail the agency's plan to publish, as open data, 69 
any public data that the agency has identified and any protected data 70 
that can be made public through aggregation, redaction of individually 71 
identifiable information or other means sufficient to satisfy applicable 72 
state or federal law or regulation. 73 
(i) The Office of Policy and Management shall operate and maintain 74 
an online repository for the publication of open data by executive 75 
branch agencies. 76 
(j) Not later than January 1, 2026, the Chief Data Officer, in 77 
consultation with the agency data officers designated pursuant to 78 
subsection (b) of this section, shall review the inventory of high value 79 
data collected or possessed by executive branch agencies pursuant to 80 
subsection (g) of this section to identify and publish any data that could 81 
be useful for artificial intelligence systems, machine learning and other 82 
statistical means of data analysis to create economic opportunity and 83 
support state economic development goals, through private businesses, 84 
nonprofit organizations and other entities that will use such data, 85  Substitute Bill No. 1249 
 
 
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consistent with all applicable laws and regulations. The Chief Data 86 
Officer and agency data officers shall: 87 
(1) Identify appropriate data to make available for use by artificial 88 
intelligence systems, machine learning and other statistical means of 89 
data analysis; 90 
(2) Develop policies and procedures for data quality and data 91 
governance to ensure data are appropriate for the intended purpose and 92 
do not lead to any unlawful discrimination or disparate impact, as 93 
described in subparagraph (B) of subdivision (1) of subsection (c) of 94 
section 51-10e; 95 
(3) Determine any necessary aggregation, redaction of individually 96 
identifiable information or application of other techniques required to 97 
ensure and preserve privacy and to satisfy all applicable state or federal 98 
laws and regulations for the public disclosure of data; and 99 
(4) Determine the procedures through which agencies shall make any 100 
such data available via publication on the online repository established 101 
pursuant to subsection (i) of this section. 102 
[(j)] (k) Any state agency that is not an executive branch agency and 103 
any quasi-public agency or municipality may voluntarily opt to comply 104 
with the provisions of this section and, upon submission of written 105 
notice of the agency's or municipality's decision to the Office of Policy 106 
and Management, the provisions of this section shall apply to such 107 
agency or municipality. Any state or quasi-public agency or any 108 
municipality that voluntarily opts to comply with the provisions of this 109 
section may opt out of complying with this section upon submission of 110 
written notice of the agency's or municipality's decision to the Office of 111 
Policy and Management. The Office of Policy and Management shall 112 
create and maintain a list of all agencies subject to the provisions of this 113 
section, including those agencies and municipalities that have 114 
voluntarily opted to comply, and shall publish such list on the office's 115 
Internet web site and update such list as necessary. 116  Substitute Bill No. 1249 
 
 
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Sec. 2. (Effective July 1, 2025) The Commissioner of Economic and 117 
Community Development, in consultation with the Banking 118 
Commissioner, Commissioner of Health Strategy, Commissioner of 119 
Public Health and Insurance Commissioner, shall develop a plan to 120 
establish an artificial intelligence regulatory sandbox program, which 121 
program shall allow an applicant to temporarily test an innovative 122 
product or service on a limited basis under reduced licensure, 123 
regulatory or other legal requirements than may otherwise be required 124 
under the laws of the state. Such plan shall be developed for the purpose 125 
of establishing a competitive business environment in the state for the 126 
development and deployment of artificial intelligence technologies 127 
relative to other jurisdictions. Not later than January 1, 2026, the 128 
Commissioner of Economic and Community Development shall submit 129 
recommendations, in accordance with the provisions of section 11-4a of 130 
the general statutes, to the Governor and the joint standing committees 131 
of the General Assembly having cognizance of matters relating to 132 
commerce, banking, insurance and public health regarding the adoption 133 
of any legislation necessary to implement such plan. 134 
Sec. 3. (NEW) (Effective October 1, 2025) (a) As used in this section: 135 
(1) "Artificial intelligence system" means any machine-based system 136 
that, for any explicit or implicit objective, infers from the inputs such 137 
system receives how to generate outputs, including, but not limited to, 138 
content, decisions, predictions or recommendations, that can influence 139 
physical or virtual environments; 140 
(2) "Generative artificial intelligence system" means any artificial 141 
intelligence system that (A) is trained on data, (B) interacts with any 142 
individual by way of text, audio or visual communication, and (C) 143 
generates nonscripted outputs, similar to outputs created by human 144 
beings, with limited or no human oversight; and 145 
(3) "Person" means an individual, association, corporation, limited 146 
liability company, partnership, trust or other legal entity. 147 
(b) Except as provided in subsection (c) of this section, it shall not be 148  Substitute Bill No. 1249 
 
 
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a defense to any civil or administrative claim or action of any kind, 149 
including, but not limited to, any claim in tort or contract, any claim or 150 
action arising out of any unfair or deceptive act or practice in the 151 
conduct of trade or commerce under subsection (a) of section 42-110b of 152 
the general statutes, any claim or action arising out of the unauthorized 153 
practice of any licensed, certified or registered profession, trade, 154 
business or occupation or any claim or action arising out of any 155 
discrimination prohibited under chapter 814c of the general statutes, 156 
that an artificial intelligence system: 157 
(1) Committed the act or omission that is the basis for such claim or 158 
action; or 159 
(2) Was used in furtherance of the act or omission that is the basis for 160 
such claim or action. 161 
(c) The provisions of subsection (b) of this section shall not be 162 
construed to apply to any circumstance in which a person provides an 163 
individual with access to a generative artificial intelligence system, or 164 
prompts or otherwise causes an individual to interact with a generative 165 
artificial intelligence system, and: 166 
(1) Clearly and conspicuously discloses to the individual that such 167 
individual is interacting with a generative artificial intelligence system 168 
and not a human being (A) upon a request made by such individual for 169 
such disclosure, or (B) (i) orally at the start of such interaction, if such 170 
interaction is conducted orally, or (ii) by way of an electronic message 171 
delivered to such individual before the start of such interaction, if such 172 
interaction is conducted in writing; and 173 
(2) Discloses that the interaction between the individual and the 174 
generative artificial intelligence system is not intended to provide any 175 
advice that may only be provided by a person acting within the scope 176 
of a licensed, certified or registered profession, trade, business or 177 
occupation, if the person providing such individual with access to such 178 
generative artificial intelligence system, or prompting or otherwise 179 
causing such individual to interact with such generative artificial 180  Substitute Bill No. 1249 
 
 
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intelligence system, provides services that may only be provided by a 181 
person acting within the scope of a duly licensed, certified or registered 182 
profession, trade, business or occupation. 183 
Sec. 4 (NEW) (Effective July 1, 2025) (a) As used in this section: 184 
(1) "Artificial intelligence system" means any machine-based system 185 
that, for any explicit or implicit objective, infers from the inputs such 186 
system receives how to generate outputs, including, but not limited to, 187 
content, decisions, predictions or recommendations, that can influence 188 
physical or virtual environments; 189 
(2) "Quantum technology" means the use of the laws of quantum 190 
physics for (A) the storage, transmission, manipulation, computing or 191 
measurement of information, or (B) the development or manufacturing 192 
of machinery, hardware, materials or pharmaceuticals; and 193 
(3) "Corporation" means Connecticut Innovations, Incorporated. 194 
(b) The corporation shall establish a fund to be known as the Artificial 195 
Intelligence and Quantum Technology Investment Fund for the purpose 196 
of investing in companies in the state, or companies relocating 197 
significant operations to the state, which develop, manufacture, utilize 198 
or deploy artificial intelligence systems or quantum technology. The 199 
corporation, or a subsidiary created by the corporation for the purposes 200 
of this section, shall serve as general partner or managing member of 201 
the fund and shall determine the organizational and operating structure 202 
of the fund. 203 
(c) The corporation may capitalize the fund from time to time by 204 
drawing upon the existing assets of the corporation. The corporation 205 
may invest up to fifty million dollars in the fund. The fund may make 206 
investments or coinvestments in companies in the state, or companies 207 
relocating significant operations to the state, which investments or 208 
coinvestments may include seed financing, start-up financing, early or 209 
first-stage financing or expansion financing, as such terms are defined 210 
in section 32-34 of the general statutes. 211  Substitute Bill No. 1249 
 
 
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This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 July 1, 2025 4-67p 
Sec. 2 July 1, 2025 New section 
Sec. 3 October 1, 2025 New section 
Sec. 4 July 1, 2025 New section 
 
Statement of Legislative Commissioners:   
In Section 1(j)(4), "online repository for open data maintained" was 
changed to "online repository established" for consistency with other 
provisions of the section; in Section 2, provisions were rewritten for 
consistency with standard drafting conventions; and in Section 4(c), "or 
coinvestments" was added after "which investments" for internal 
consistency. 
 
GL Joint Favorable Subst. -LCO