EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0987*
SENATE BILL 987
J1, J5, S1 5lr2205
By: Senator Lam
Introduced and read first time: January 28, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Artificial Intelligence – Health Software and Health Insurance Decision Making 2
FOR the purpose of requiring the Maryland Health Care Commission to maintain a registry 3
of artificial intelligence health software that may be distributed or operated in the 4
State; prohibiting a person from distributing or operating artificial intelligence 5
health software unless the software is registered with the Commission; prohibiting 6
a health insurance carrier from using artificial intelligence to decide or directly 7
influence a health care decision or a decision directly related to health care; and 8
generally relating to artificial intelligence in health care. 9
BY repealing and reenacting, without amendments, 10
Article – Health – General 11
Section 19–101 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Health – General 16
Section 19–150 to be under the new part “Part VI. Artificial Intelligence Health 17
Software” 18
Annotated Code of Maryland 19
(2023 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Insurance 22
Section 15–147 23
Annotated Code of Maryland 24
(2017 Replacement Volume and 2024 Supplement) 25
BY repealing and reenacting, without amendments, 26
Article – State Finance and Procurement 27 2 SENATE BILL 987
Section 3.5–801(a) and (c) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2024 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Health – General 6
19–101. 7
In this subtitle, “Commission” means the Maryland Health Care Commission. 8
PART VI. ARTIFICIAL INTELLIGENCE HEALTH SOFTWARE. 9
19–150. 10
(A) THE COMMISSION SHALL MAINTAIN A REGISTRY OF ARTIFICIAL 11
INTELLIGENCE HEALTH SOFTWARE THAT MAY BE DISTRIBUTED OR OPERA TED IN 12
THE STATE. 13
(B) A PERSON MAY NOT DISTR IBUTE OR OPERATE ART IFICIAL 14
INTELLIGENCE HEALTH SOFTWARE IN THE STATE UNLESS THE SOFTWARE IS 15
REGISTERED WITH THE COMMISSION. 16
(C) THE COMMISSION SHALL ADOP T REGULATIONS THAT: 17
(1) DEFINE ARTIFICIAL INT ELLIGENCE HEALTH SOF TWARE; 18
(2) DETERMINE THE INFORMATION ABOUT AR TIFICIAL 19
INTELLIGENCE HEALTH SOFTWARE TO BE COLLECTED FOR THE REGISTRY; AND 20
(3) SET A REGISTRATION DEADLINE FOR WHEN TH E COMMISSION 21
WILL BEGIN TO ISSUE FINES TO A PERSON THAT DISTRIBUTES OR OPERATE S 22
UNREGISTERED ARTIFIC IAL INTELLIGENCE HEA LTH SOFTWARE IN THE STATE. 23
(D) (1) IF A PERSON DISTRIBUT ES OR OPERATES UNREGISTERED 24
ARTIFICIAL INTELLIGE NCE HEALTH SOFTWARE IN THE STATE, THE COMMISSION 25
MAY FINE THE PERSON UP TO $10,000 FOR EACH DAY THE VIOLATION OCCURRED. 26
(2) THE AMOUNT OF THE FINE IMPOSED BY THE COMMISSION UNDER 27
PARAGRAPH (1) OF THIS SUBSECTION SHALL BE BASED ON : 28
SENATE BILL 987 3
(I) THE EXTENT OF ACTUAL OR POTENTIAL HARM RELATED TO 1
THE VIOLATION; 2
(II) THE COST OF INVESTIGA TING THE VIOLATION ; AND 3
(III) WHETHER THE PERSON CO MMITTED PREVIOUS 4
VIOLATIONS OF THIS SECTION. 5
Article – Insurance 6
15–147. 7
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9
(2) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 10
3.5–801 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 11
(3) “CARRIER” MEANS: 12
(I) AN INSURER; 13
(II) A NONPROFIT HEALTH S ERVICE PLAN; 14
(III) A HEALTH MAINTENANCE ORGANIZATION ; 15
(IV) A DENTAL PLAN ORGANI ZATION; OR 16
(V) ANY OTHER PERSON THA T PROVIDES HEALTH BENEFIT 17
PLANS SUBJECT TO REG ULATION BY THE STATE. 18
(B) A CARRIER MAY NOT USE ARTIF ICIAL INTELLIGENCE TO DECIDE OR 19
DIRECTLY INFLUENCE A HEALTH CARE DECISION OR A DECISION DIRECTLY 20
RELATED TO HEALTH CARE . 21
(C) THIS SECTION MAY NOT BE CONSTRUED TO PROH IBIT A CARRIER FROM 22
USING ARTIFICIAL INT ELLIGENCE TO PERFORM TASKS OR MAKE DECISI ONS THAT 23
ARE NOT RELATED TO HEALTH CARE . 24
Article – State Finance and Procurement 25
3.5–801. 26
(a) In this subtitle the following words have the meanings indicated. 27 4 SENATE BILL 987
(c) “Artificial intelligence” means a machine–based system that: 1
(1) can, for a given set of human–defined objectives, make predictions, 2
recommendations, or decisions influencing real or virtual environments; 3
(2) uses machine and human–based inputs to perceive real and virtual 4
environments and abstracts those perceptions into models through analysis in an 5
automated manner; and 6
(3) uses model inference to formulate options for information or action. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2025. 9