LCO 1 of 8 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 Section 4-67p of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2025): 2 (a) The Secretary of the Office of Policy and Management shall 3 designate an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 LCO 2 of 8 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 LCO 3 of 8 (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 LCO 4 of 8 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 LCO 5 of 8 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 LCO 6 of 8 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 LCO 7 of 8 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 LCO 8 of 8 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