Maryland 2025 Regular Session

Maryland Senate Bill SB987 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0987*
66
77 SENATE BILL 987
88 J1, J5, S1 5lr2205
99
1010 By: Senator Lam
1111 Introduced and read first time: January 28, 2025
1212 Assigned to: Finance
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Artificial Intelligence – Health Software and Health Insurance Decision Making 2
1919
2020 FOR the purpose of requiring the Maryland Health Care Commission to maintain a registry 3
2121 of artificial intelligence health software that may be distributed or operated in the 4
2222 State; prohibiting a person from distributing or operating artificial intelligence 5
2323 health software unless the software is registered with the Commission; prohibiting 6
2424 a health insurance carrier from using artificial intelligence to decide or directly 7
2525 influence a health care decision or a decision directly related to health care; and 8
2626 generally relating to artificial intelligence in health care. 9
2727
2828 BY repealing and reenacting, without amendments, 10
2929 Article – Health – General 11
3030 Section 19–101 12
3131 Annotated Code of Maryland 13
3232 (2023 Replacement Volume and 2024 Supplement) 14
3333
3434 BY adding to 15
3535 Article – Health – General 16
3636 Section 19–150 to be under the new part “Part VI. Artificial Intelligence Health 17
3737 Software” 18
3838 Annotated Code of Maryland 19
3939 (2023 Replacement Volume and 2024 Supplement) 20
4040
4141 BY adding to 21
4242 Article – Insurance 22
4343 Section 15–147 23
4444 Annotated Code of Maryland 24
4545 (2017 Replacement Volume and 2024 Supplement) 25
4646
4747 BY repealing and reenacting, without amendments, 26
4848 Article – State Finance and Procurement 27 2 SENATE BILL 987
4949
5050
5151 Section 3.5–801(a) and (c) 1
5252 Annotated Code of Maryland 2
5353 (2021 Replacement Volume and 2024 Supplement) 3
5454
5555 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
5656 That the Laws of Maryland read as follows: 5
5757
5858 Article – Health – General 6
5959
6060 19–101. 7
6161
6262 In this subtitle, “Commission” means the Maryland Health Care Commission. 8
6363
6464 PART VI. ARTIFICIAL INTELLIGENCE HEALTH SOFTWARE. 9
6565
6666 19–150. 10
6767
6868 (A) THE COMMISSION SHALL MAINTAIN A REGISTRY OF ARTIFICIAL 11
6969 INTELLIGENCE HEALTH SOFTWARE THAT MAY BE DISTRIBUTED OR OPERA TED IN 12
7070 THE STATE. 13
7171
7272 (B) A PERSON MAY NOT DISTR IBUTE OR OPERATE ART IFICIAL 14
7373 INTELLIGENCE HEALTH SOFTWARE IN THE STATE UNLESS THE SOFTWARE IS 15
7474 REGISTERED WITH THE COMMISSION. 16
7575
7676 (C) THE COMMISSION SHALL ADOP T REGULATIONS THAT: 17
7777
7878 (1) DEFINE ARTIFICIAL INT ELLIGENCE HEALTH SOF TWARE; 18
7979
8080 (2) DETERMINE THE INFORMATION ABOUT AR TIFICIAL 19
8181 INTELLIGENCE HEALTH SOFTWARE TO BE COLLECTED FOR THE REGISTRY; AND 20
8282
8383 (3) SET A REGISTRATION DEADLINE FOR WHEN TH E COMMISSION 21
8484 WILL BEGIN TO ISSUE FINES TO A PERSON THAT DISTRIBUTES OR OPERATE S 22
8585 UNREGISTERED ARTIFIC IAL INTELLIGENCE HEA LTH SOFTWARE IN THE STATE. 23
8686
8787 (D) (1) IF A PERSON DISTRIBUT ES OR OPERATES UNREGISTERED 24
8888 ARTIFICIAL INTELLIGE NCE HEALTH SOFTWARE IN THE STATE, THE COMMISSION 25
8989 MAY FINE THE PERSON UP TO $10,000 FOR EACH DAY THE VIOLATION OCCURRED. 26
9090
9191 (2) THE AMOUNT OF THE FINE IMPOSED BY THE COMMISSION UNDER 27
9292 PARAGRAPH (1) OF THIS SUBSECTION SHALL BE BASED ON : 28
9393 SENATE BILL 987 3
9494
9595
9696 (I) THE EXTENT OF ACTUAL OR POTENTIAL HARM RELATED TO 1
9797 THE VIOLATION; 2
9898
9999 (II) THE COST OF INVESTIGA TING THE VIOLATION ; AND 3
100100
101101 (III) WHETHER THE PERSON CO MMITTED PREVIOUS 4
102102 VIOLATIONS OF THIS SECTION. 5
103103
104104 Article – Insurance 6
105105
106106 15–147. 7
107107
108108 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
109109 INDICATED. 9
110110
111111 (2) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 10
112112 3.5–801 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 11
113113
114114 (3) “CARRIER” MEANS: 12
115115
116116 (I) AN INSURER; 13
117117
118118 (II) A NONPROFIT HEALTH S ERVICE PLAN; 14
119119
120120 (III) A HEALTH MAINTENANCE ORGANIZATION ; 15
121121
122122 (IV) A DENTAL PLAN ORGANI ZATION; OR 16
123123
124124 (V) ANY OTHER PERSON THA T PROVIDES HEALTH BENEFIT 17
125125 PLANS SUBJECT TO REG ULATION BY THE STATE. 18
126126
127127 (B) A CARRIER MAY NOT USE ARTIF ICIAL INTELLIGENCE TO DECIDE OR 19
128128 DIRECTLY INFLUENCE A HEALTH CARE DECISION OR A DECISION DIRECTLY 20
129129 RELATED TO HEALTH CARE . 21
130130
131131 (C) THIS SECTION MAY NOT BE CONSTRUED TO PROH IBIT A CARRIER FROM 22
132132 USING ARTIFICIAL INT ELLIGENCE TO PERFORM TASKS OR MAKE DECISI ONS THAT 23
133133 ARE NOT RELATED TO HEALTH CARE . 24
134134
135135 Article – State Finance and Procurement 25
136136
137137 3.5–801. 26
138138
139139 (a) In this subtitle the following words have the meanings indicated. 27 4 SENATE BILL 987
140140
141141
142142
143143 (c) “Artificial intelligence” means a machine–based system that: 1
144144
145145 (1) can, for a given set of human–defined objectives, make predictions, 2
146146 recommendations, or decisions influencing real or virtual environments; 3
147147
148148 (2) uses machine and human–based inputs to perceive real and virtual 4
149149 environments and abstracts those perceptions into models through analysis in an 5
150150 automated manner; and 6
151151
152152 (3) uses model inference to formulate options for information or action. 7
153153
154154 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
155155 October 1, 2025. 9