Nevada 2025 Regular Session

Nevada Senate Bill SB199 Latest Draft

Bill / Introduced Version

                            REQUIRES TWO-THIRDS MAJORITY VOTE (§ 6)  
  
  	S.B. 199 
 
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SENATE BILL NO. 199–SENATOR NEAL 
 
FEBRUARY 11, 2025 
____________ 
 
Referred to Committee on Commerce and Labor 
 
SUMMARY—Enacts provisions relating to artificial intelligence 
systems. (BDR 52-583) 
 
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. 
 Effect on the State: Yes. 
 
~ 
 
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. 
 
 
AN ACT relating to artificial intelligence systems; providing for the 
registration and regulation of artificial intelligence 
companies by the Bureau of Consumer Protection in the 
Office of the Attorney General; imposing certain 
requirements and restrictions upon certain persons 
engaged in certain activities relating to artificial 
intelligence systems; requiring the Department of 
Employment, Training and Rehabilitation to collect and 
report certain information relating to artificial intelligence 
systems; requiring a county recorder to develop, 
implement and maintain certain policies, procedures and 
protocols; revising the list of activities that constitute an 
unlawful contract, combination or conspiracy in restraint 
of trade; requiring the Superintendent of Public 
Instruction to establish the Working Group on the Use of 
Artificial Intelligence Systems in Education; providing 
penalties; and providing other matters properly relating 
thereto. 
Legislative Counsel’s Digest: 
 This bill enacts various provisions relating to “artificial intelligence systems,” 1 
which section 4 of this bill defines to mean any machine-based system that, for any 2 
explicit or implicit objective, infers from the inputs such system receives how to 3 
generate outputs, including, without limitation, content, decisions, predictions or 4 
recommendations, that can influence physical or virtual environments.  5 
 Sections 6-12 of this bill provide for the registration and regulation of 6 
“artificial intelligence companies,” which section 3 of this bill defines to mean, in 7 
general, a person who develops an artificial intelligence system and either sells the 8   
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system to another person or enters into a contractual arrangement with another 9 
person to allow customers of the person to use the artificial intelligence system. 10 
Section 6 requires an artificial intelligence company to be registered with the 11 
Bureau of Consumer Protection in the Office of the Attorney General. Sections 6-8 12 
set forth various requirements for the issuance and renewal of such a registration.  13 
 Section 9 requires an artificial intelligence company to develop, implement and 14 
maintain certain policies, procedures and protocols. Section 10 requires an artificial 15 
intelligence company to conduct a semiannual self-assessment and submit the 16 
results of the self-assessment to the Bureau. Section 11 authorizes the Bureau to 17 
impose certain penalties for violations of the provisions of sections 6-10. Section 18 
12 authorizes the Bureau to adopt regulations to carry out the provisions of sections 19 
6-11. 20 
 Section 13 of this bill requires a person who sells computer software that is 21 
capable of generating legal documents through the use of an artificial intelligence 22 
system to ensure that each such document generated is reviewed by a licensed 23 
attorney before the document is provided to a customer in this State.  24 
 Section 14 of this bill requires the operator of a search website that provides 25 
users both a method to conduct a search that uses an artificial intelligence system 26 
and a method that does not use an artificial intelligence system to: (1) require a user 27 
to opt in to use the method that uses an artificial intelligence system; and (2) allow 28 
a user that does not opt in to continue to use the method that does not use an 29 
artificial intelligence system so long as the operator offers the method.  30 
 Section 15 of this bill prohibits a person who is paid money for a service on the 31 
condition that the service be provided by a natural person from providing the 32 
service through an image of a natural person generated by an artificial intelligence 33 
system.  34 
 Section 16 of this bill requires the Department of Employment, Training and 35 
Rehabilitation to collect information concerning the number and type of jobs that 36 
have been lost in this State because of the use of artificial intelligence systems and 37 
submit an annual report to the Governor and the Legislature regarding the 38 
information collected.  39 
 Section 17 of this bill requires a county recorder to develop, implement and 40 
maintain policies, procedures and protocols to verify the identity of any person 41 
filing a document and to protect against fraud committed in the filing of a 42 
document through the use of an artificial intelligence system.  43 
 Section 18 of this bill prohibits a peace officer from using an artificial 44 
intelligence system to generate an investigative or police report. 45 
 Section 19 of this bill prohibits, with certain exceptions, certain teachers from 46 
using an artificial intelligence system to generate a class lesson plan. Section 26 of 47 
this bill requires the Superintendent of Public Instruction to establish the Working 48 
Group on the Use of Artificial Intelligence Systems in Education to conduct an 49 
assessment and develop certain policies and guidance relating to the use of artificial 50 
intelligence systems during the 2025-2026 interim.  51 
 The Nevada Unfair Trade Practice Act sets forth various activities that 52 
constitute an unlawful contract, combination or conspiracy in restraint of trade and 53 
authorizes the Attorney General to investigate and take certain actions against 54 
persons who engage in such activities, which may include, without limitation, 55 
criminal prosecution and the imposition of civil penalties. (Chapter 598A of NRS) 56 
Section 20 of this bill includes among the activities that constitute an unlawful 57 
contract, combination or conspiracy in restraint of trade the establishment by a 58 
landlord of a price for rent for a dwelling unit that is based upon a recommendation 59 
provided by certain artificial intelligence systems that generate recommended 60 
prices for rent using certain nonpublic information provided by multiple landlords.  61 
 Section 21 of this bill prohibits a financial institution from using any data 62 
collected by the financial institution relating to the finances of a customer to train 63   
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an artificial intelligence system developed by the financial institution or providing 64 
such data to an artificial intelligence company without providing certain notice and 65 
obtaining the consent of the customer to whom such data relates. Section 24 of this 66 
bill similarly prohibits an insurer from using any data collected by the insurer 67 
relating to the health of an insured to train an artificial intelligence system 68 
developed by the insurer without providing certain notice and obtaining the consent 69 
of the customer to whom such data relates. 70 
 Existing law sets forth various practices that constitute an unfair or deceptive 71 
trade practice in the business of insurance. (NRS 686A.010-686A.310) Section 25 72 
of this bill requires an insurer to adopt practices designed to ensure that the use of 73 
an artificial intelligence system by the insurer does not result in the commission of 74 
an unfair or deceptive trade practice. Section 25 also requires an insurer to develop, 75 
implement and maintain a plan for the responsible use of artificial intelligence 76 
systems by the insurer and sets forth certain requirements for such a plan.  77 
 Section 22 of this bill applies the definitions set forth under the provisions of 78 
existing law governing financial institutions to the provisions of section 21.  79 
 
 
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN 
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 
 
 Section 1.  Title 52 of NRS is hereby amended by adding 1 
thereto a new chapter to consist of the provisions set forth as 2 
sections 2 to 16, inclusive, of this act. 3 
 Sec. 2.  As used in this chapter, unless the context otherwise 4 
requires, the words and terms defined in sections 3, 4 and 5 of this 5 
act have the meanings ascribed to them in those sections.  6 
 Sec. 3.  “Artificial intelligence company” means a person 7 
who: 8 
 1. Is registered with the Bureau pursuant to section 6 of this 9 
act; 10 
 2. Develops an artificial intelligence system; and  11 
 3. Either: 12 
 (a) Sells the artificial intelligence system to another person; or  13 
 (b) Enters into a contractual arrangement with another person 14 
to allow customers of the person to use the artificial intelligence 15 
system.  16 
 Sec. 4.  “Artificial intelligence system” means any machine-17 
based system that, for any explicit or implicit objective, infers from 18 
the inputs such system receives how to generate outputs, 19 
including, without limitation, content, decisions, predictions or 20 
recommendations, that can influence physical or virtual 21 
environments.  22 
 Sec. 5.  “Bureau” means the Bureau of Consumer Protection 23 
in the Office of the Attorney General. 24 
 Sec. 6.  1. A person shall not engage in the business of an 25 
artificial intelligence company in this State unless the person is 26 
registered with the Bureau pursuant to this section.  27   
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 2. A person who wishes to register with the Bureau as an 1 
artificial intelligence company must submit to the Bureau the fee 2 
established pursuant to subsection 4 and an application, on a form 3 
prescribed by the Bureau, which contains: 4 
 (a) The name and address of the applicant;  5 
 (b) Information concerning the nature of the data the person 6 
maintains and the locations at which such data is stored; and  7 
 (c) Such other information as the Bureau may require by 8 
regulation.  9 
 3. Registration as an artificial intelligence company expires 1 10 
year after issuance and may be renewed upon submission of the 11 
fee established pursuant to subsection 4 and an application for 12 
renewal, on a form prescribed by the Bureau, which contains: 13 
 (a) Information concerning the nature of the data the 14 
company maintains and the locations at which such data is stored; 15 
and  16 
 (b) Such other information as the Bureau may require by 17 
regulation.  18 
 4. The Bureau shall establish by regulation fees for the 19 
issuance and renewal of a registration as an artificial intelligence 20 
company.  21 
 Sec. 7.  1. In addition to any other requirements set forth in 22 
this chapter, a natural person who applies for the issuance or 23 
renewal of a registration as an artificial intelligence company 24 
shall: 25 
 (a) Include the social security number of the applicant in the 26 
application submitted to the Bureau.  27 
 (b) Submit to the Bureau the statement prescribed by the 28 
Division of Welfare and Supportive Services of the Department of 29 
Health and Human Services pursuant to NRS 425.520. The 30 
statement must be completed and signed by the applicant.  31 
 2. The Bureau shall include the statement required pursuant 32 
to subsection 1 in: 33 
 (a) The application or any other forms that must be submitted 34 
for the issuance or renewal of the registration; or  35 
 (b) A separate form prescribed by the Bureau.  36 
 3. A registration may not be issued or renewed by the Bureau 37 
if the applicant: 38 
 (a) Fails to submit the statement required pursuant to 39 
subsection 1; or  40 
 (b) Indicates on the statement submitted pursuant to 41 
subsection 1 that the applicant is subject to a court order for the 42 
support of a child and is not in compliance with the order or a 43 
plan approved by the district attorney or other public agency 44   
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enforcing the order for the repayment of the amount owed 1 
pursuant to the order.  2 
 4. If an applicant indicates on the statement submitted 3 
pursuant to subsection 1 that the applicant is subject to a court 4 
order for the support of a child and is not in compliance with the 5 
order or a plan approved by the district attorney or other public 6 
agency enforcing the order for the repayment of the amount owed 7 
pursuant to the order, the Bureau shall advise the applicant to 8 
contact the district attorney or other public agency enforcing the 9 
order to determine the actions that the applicant may take to 10 
satisfy the arrearage.  11 
 Sec. 8.  1. If the Bureau receives a copy of a court order 12 
issued pursuant to NRS 425.540 that provides for the suspension 13 
of all professional, occupational and recreational licenses, 14 
certificates and permits issued to a person who is the holder of a 15 
registration as an artificial intelligence company, the Bureau shall 16 
deem the registration issued to that person to be suspended at the 17 
end of the 30th day after the date on which the court order was 18 
issued unless the Bureau receives a letter issued to the holder of 19 
the registration by the district attorney or other public agency 20 
pursuant to NRS 425.550 stating that the holder of the registration 21 
has complied with the subpoena or warrant or has satisfied the 22 
arrearage pursuant to NRS 425.560. 23 
 2. The Bureau shall reinstate a registration that has been 24 
suspended by a district court pursuant to NRS 425.540 if the 25 
Bureau receives a letter issued by the district attorney or other 26 
public agency pursuant to NRS 425.550 to the person whose 27 
registration was suspended stating that the person whose 28 
registration was suspended has complied with the subpoena or 29 
warrant or has satisfied the arrearage pursuant to NRS 425.560. 30 
 Sec. 9.  An artificial intelligence company shall develop, 31 
implement and maintain policies, procedures and protocols to 32 
protect against: 33 
 1. The existence of bias in the performance of an artificial 34 
intelligence system;  35 
 2. The generation of hate speech by an artificial intelligence 36 
system;  37 
 3. The use of an artificial intelligence system for the purpose 38 
of bullying;  39 
 4. The dissemination of misinformation by an artificial 40 
intelligence system; and 41 
 5. The commission of fraud, identity theft or other similar 42 
crimes through the use of an artificial intelligence system.  43   
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 Sec. 10.  An artificial intelligence company shall, at least 1 
twice per year in accordance with a schedule and procedures 2 
prescribed by the Bureau: 3 
 1. Conduct a self-assessment to determine whether the 4 
artificial intelligence systems of the company are properly 5 
functioning and whether the company is in compliance with all 6 
applicable laws and regulations governing artificial intelligence 7 
companies; and  8 
 2. Submit to the Bureau the results of the self-assessment 9 
conducted pursuant to subsection 1.  10 
 Sec. 11.  If an artificial intelligence company violates any 11 
provision of sections 6 to 10, inclusive, of this act, the Bureau 12 
may: 13 
 1. For a first violation within the immediately preceding 2 14 
years, impose a civil penalty of not more than $5,000 for each 15 
violation and treble the amount of actual damages caused by the 16 
violation.  17 
 2. For a second violation within the immediately preceding 2 18 
years, suspend the registration of the artificial intelligence 19 
company. 20 
 3. For a third or subsequent violation within the immediately 21 
preceding 3 years, revoke the license of the artificial intelligence 22 
company. 23 
 Sec. 12.  The Bureau may adopt regulations to carry out the 24 
provisions of sections 6 to 11, inclusive, of this act.  25 
 Sec. 13.  A person who sells computer software that is 26 
capable of generating legal documents through the use of an 27 
artificial intelligence system must ensure that each legal document 28 
generated by the software is reviewed by an attorney who is 29 
licensed in this State before the document is provided to a 30 
customer in this State.  31 
 Sec. 14.  1. If the operator of a search website provides 32 
users in this State with both a method to conduct a search that 33 
uses an artificial intelligence system and a method to conduct a 34 
search that does not use an artificial intelligence system, the 35 
operator must require a user to opt in before utilizing the method 36 
that uses an artificial intelligence system. If a user does not opt in, 37 
the operator shall allow the user to utilize the method that does not 38 
use an artificial intelligence system so long as the operator offers 39 
that method to users in this State.  40 
 2. As used in this section, “search website” means an Internet 41 
website that searches for and identifies information on the 42 
Internet that corresponds to keyword or characters specified by a 43 
user. The term includes, without limitation, an Internet website 44   
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with the functionality to enable a user to search for only 1 
information that is contained on the Internet website itself.  2 
 Sec. 15.  1. A person who is paid money for a service on the 3 
condition that the service be provided by a natural person shall not 4 
provide the service through an image of a natural person 5 
generated by an artificial intelligence system.  6 
 2. The provisions of subsection 1 do not apply to: 7 
 (a) The placement of a bet or wager in a licensed gaming 8 
establishment, as defined in NRS 463.0169; or 9 
 (b) The provision of any service, including, without limitation, 10 
the reserving of hotel accommodations, through an artificial 11 
intelligence system which is not paid for on the condition that the 12 
service be provided by a natural person.  13 
 Sec. 16.  1. The Department of Employment, Training and 14 
Rehabilitation shall collect information from employers in this 15 
State concerning the number and type of jobs that have been lost 16 
because of the use of artificial intelligence systems.  17 
 2. Upon the request of the Department, an employer shall 18 
provide to the Department information concerning the number 19 
and type of jobs that the employer has eliminated because of the 20 
use by the employer of an artificial intelligence system.  21 
 3. On or before December 1 of each year, the Department 22 
shall compile the information collected by the Department 23 
pursuant to this section into a report and submit the report to: 24 
 (a) The Governor; and  25 
 (b) The Director of the Legislative Counsel Bureau for 26 
transmittal to the Legislative Commission, if the report is received 27 
during an odd-numbered year, or to the next session of the 28 
Legislature, if the report is received during an even-numbered 29 
year. 30 
 4. For the purposes of this section, the use of an artificial 31 
intelligence system by an employer to temporarily fulfill the job 32 
duties of an employee who is temporarily absent from employment 33 
does not constitute a job that has been lost because of the use of 34 
an artificial intelligence system.  35 
 5. The Department may adopt regulations to carry out the 36 
provisions of this section.  37 
 6. As used in this section: 38 
 (a) “Department” means the Department of Employment, 39 
Training and Rehabilitation.  40 
 (b) “Employer” includes a public employer and a private 41 
employer.  42   
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 Sec. 17.  Chapter 247 of NRS is hereby amended by adding 1 
thereto a new section to read as follows: 2 
 1. A county recorder shall develop, implement and maintain 3 
policies, procedures and protocols to verify the identity of any 4 
person filing a document and to protect against fraud committed 5 
in the filing of a document through the use of an artificial 6 
intelligence system.  7 
 2. As used in this section, “artificial intelligence system” has 8 
the meaning ascribed to it in section 4 of this act.  9 
 Sec. 18.  Chapter 289 of NRS is hereby amended by adding 10 
thereto a new section to read as follows: 11 
 1. A peace officer shall not use an artificial intelligence 12 
system to generate an investigative or police report.  13 
 2. As used in this section, “artificial intelligence system” has 14 
the meaning ascribed to it in section 4 of this act.  15 
 Sec. 19.  Chapter 389 of NRS is hereby amended by adding 16 
thereto a new section to read as follows: 17 
 1. A teacher who provides instruction in a public school in 18 
kindergarten or any grade from grades 1 to 12, inclusive, shall not 19 
use an artificial intelligence system to generate any class lesson 20 
plan.  21 
 2. The provisions of subsection 1 do not apply to a class 22 
lesson plan involving the provision of instruction in the subject of 23 
artificial intelligence systems.  24 
 3. As used in this section, “artificial intelligence system” has 25 
the meaning ascribed to it in section 4 of this act.  26 
 Sec. 20.  NRS 598A.060 is hereby amended to read as follows: 27 
 598A.060 1.  Every activity enumerated in this subsection 28 
constitutes a contract, combination or conspiracy in restraint of 29 
trade, and it is unlawful to conduct any part of any such activity in 30 
this State: 31 
 (a) Price fixing, which consists of raising, depressing, fixing, 32 
pegging or stabilizing the price of any commodity or service, and 33 
which includes, but is not limited to: 34 
  (1) Agreements among competitors to depress prices at 35 
which they will buy essential raw material for the end product. 36 
  (2) Agreements to establish prices for commodities or 37 
services. 38 
  (3) Agreements to establish uniform discounts, or to 39 
eliminate discounts. 40 
  (4) Agreements between manufacturers to price a premium 41 
commodity a specified amount above inferior commodities. 42 
  (5) Agreements not to sell below cost. 43 
  (6) Agreements to establish uniform trade-in allowances. 44 
  (7) Establishment of uniform cost surveys. 45   
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  (8) Establishment of minimum markup percentages. 1 
  (9) Establishment of single or multiple basing point systems 2 
for determining the delivered price of commodities. 3 
  (10) Agreements not to advertise prices. 4 
  (11) Agreements among competitors to fix uniform list 5 
prices as a place to start bargaining. 6 
  (12) Bid rigging, including the misuse of bid depositories, 7 
foreclosures of competitive activity for a period of time, rotation of 8 
jobs among competitors, submission of identical bids, and 9 
submission of complementary bids not intended to secure 10 
acceptance by the customer. 11 
  (13) Agreements to discontinue a product, or agreements 12 
with anyone engaged in the manufacture of competitive lines to 13 
limit size, styles or quantities of items comprising the lines. 14 
  (14) Agreements to restrict volume of production. 15 
 (b) Division of markets, consisting of agreements between 16 
competitors to divide territories and to refrain from soliciting or 17 
selling in certain areas. 18 
 (c) Allocation of customers, consisting of agreements not to sell 19 
to specified customers of a competitor. 20 
 (d) Tying arrangements, consisting of contracts in which the 21 
seller or lessor conditions the sale or lease of commodities or 22 
services on the purchase or leasing of another commodity or service. 23 
 (e) Monopolization of trade or commerce in this State, 24 
including, without limitation, attempting to monopolize or otherwise 25 
combining or conspiring to monopolize trade or commerce in this 26 
State. 27 
 (f) Except as otherwise provided in subsection 2, consolidation, 28 
conversion, merger, acquisition of shares of stock or other equity 29 
interest, directly or indirectly, of another person engaged in 30 
commerce in this State or the acquisition of any assets of another 31 
person engaged in commerce in this State that may: 32 
  (1) Result in the monopolization of trade or commerce in this 33 
State or would further any attempt to monopolize trade or commerce 34 
in this State; or 35 
  (2) Substantially lessen competition or be in restraint of 36 
trade. 37 
 (g) Establishment by a landlord of a price for rent for a 38 
dwelling unit that is based upon a recommendation provided by an 39 
artificial intelligence system that generates recommended prices 40 
for rent using nonpublic information provided to the system by 41 
multiple landlords concerning the prices charged by those 42 
landlords for rent. 43 
 2.  The provisions of paragraph (f) of subsection 1 do not: 44   
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 (a) Apply to a person who, solely for an investment purpose, 1 
purchases stock or other equity interest or assets of another person if 2 
the purchaser does not use his or her acquisition to bring about or 3 
attempt to bring about the substantial lessening of competition in 4 
this State. 5 
 (b) Prevent a person who is engaged in commerce in this State 6 
from forming a subsidiary corporation or other business 7 
organization and owning and holding all or part of the stock or 8 
equity interest of that corporation or organization. 9 
 3. As used in this section: 10 
 (a) “Artificial intelligence system” has the meaning ascribed to 11 
it in section 4 of this act.  12 
 (b) “Dwelling unit” has the meaning ascribed to it in  13 
NRS 118A.080. 14 
 (c) “Landlord” has the meaning ascribed to it in 15 
NRS 118A.100. 16 
 (d) “Rent” has the meaning ascribed to it in NRS 118A.150. 17 
 Sec. 21.  Chapter 657 of NRS is hereby amended by adding 18 
thereto a new section to read as follows: 19 
 1. A financial institution shall not use any data collected by 20 
the financial institution relating to the finances of a customer of 21 
the financial institution to train an artificial intelligence system 22 
developed by the financial institution or provide such data to an 23 
artificial intelligence company unless: 24 
 (a) The financial institution has obtained the affirmative, 25 
voluntary consent of the customer to whom such data relates; and  26 
 (b) Before giving the consent specified in paragraph (a), the 27 
customer has been provided with a clear and conspicuous 28 
statement informing the customer that: 29 
  (1) Data relating to his or her finances may be used to train 30 
an artificial intelligence system if he or she consents; and  31 
  (2) The customer has the right to withhold his or her 32 
consent.  33 
 2. As used in this section: 34 
 (a) “Artificial intelligence company” has the meaning ascribed 35 
to it in section 3 of this act. 36 
 (b) “Artificial intelligence system” has the meaning ascribed to 37 
it in section 4 of this act.  38 
 Sec. 22.  NRS 657.150 is hereby amended to read as follows: 39 
 657.150 As used in NRS 657.150 to 657.290, inclusive, and 40 
section 21 of this act unless the context otherwise requires, the 41 
words and terms defined in NRS 657.160 and 657.170 have the 42 
meanings ascribed to them in those sections. 43   
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 Sec. 23.  Chapter 679A of NRS is hereby amended by adding 1 
thereto the provisions set forth as sections 24 and 25 of this act. 2 
 Sec. 24.  1. An insurer shall not use any data collected by 3 
the insurer that relates to the health of an insured to train an 4 
artificial intelligence system developed by the insurer unless: 5 
 (a) The insurer has obtained the affirmative, voluntary 6 
consent of the insured to whom such data relates; and  7 
 (b) Before giving the consent specified in paragraph (a), the 8 
insured has been provided with a clear and conspicuous statement 9 
informing the insured that: 10 
  (1) Data relating to his or her health may be used to train 11 
an artificial intelligence system if he or she consents; and  12 
  (2) The insured has the right to withhold his or her 13 
consent.  14 
 2. As used in this section, “artificial intelligence system” has 15 
the meaning ascribed to it in section 4 of this act.  16 
 Sec. 25.  1. An insurer shall adopt practices designed to 17 
ensure that the use of an artificial intelligence system by the 18 
insurer does not result in the commission of an unfair or deceptive 19 
trade practice in violation of the provisions of NRS 686A.010 to 20 
686A.310, inclusive.  21 
 2. An insurer shall develop, implement and maintain a plan 22 
for the responsible use of artificial intelligence systems by the 23 
insurer. The plan must: 24 
 (a) Be in writing; and  25 
 (b) Include, without limitation, a plan for the acquisition, use 26 
or reliance upon artificial intelligence systems which are 27 
developed by a third party. Such a plan may include, without 28 
limitation, the establishment of standards, policies and procedures 29 
relating to: 30 
  (1) The inclusion of terms in a contract with such a third 31 
party that requires the third party to cooperate with the insurer 32 
with respect to regulatory inquiries and investigations relating to 33 
the use of the insurer of the products or services of the third party.  34 
  (2) The performance of contractual rights regarding audits 35 
or activities to confirm the compliance of the third party with 36 
contractual requirements and applicable statutory or regulatory 37 
requirements.  38 
 Sec. 26.  1. The Superintendent of Public Instruction shall 39 
establish the Working Group on the Use of Artificial Intelligence 40 
Systems in Education to conduct an assessment and develop certain 41 
policies and guidance relating to the use of artificial intelligence 42 
systems during the 2025-2026 interim. 43 
 2. The Superintendent of Public Instruction shall appoint such 44 
number of members of the Working Group as he or she determines 45   
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is appropriate to carry out the duties of the Working Group, but not 1 
less than: 2 
 (a) One-half of the members of the Working Group must: 3 
  (1) Be teachers licensed pursuant to chapter 391 of NRS;  4 
  (2) Teach at a public elementary or secondary school in this 5 
State; and 6 
  (3) Have knowledge of the use of artificial intelligence 7 
systems in education; 8 
 (b) One member must be a classified employee of a school 9 
district other than a licensed teacher;  10 
 (c) One member must be the administrator of a public school;  11 
 (d) One member must be an administrator of a school district;  12 
 (e) One member must be a member of the faculty of a 13 
university, college or community college who has a expertise in 14 
artificial intelligence systems and their uses in education;  15 
 (f) One member must be a representative of private business or 16 
industry who has expertise in artificial intelligence systems and their 17 
uses in education; and 18 
 (g) One member must be a pupil enrolled in a public school.  19 
 3. The Superintendent of Public Instruction shall designate the 20 
Chair and Vice Chair of the Working Group. A majority of the 21 
members of the Working Group constitutes a quorum for  22 
the transaction of business, and a majority of those members present 23 
at any meeting is sufficient for any official action taken by the 24 
Working Group.  25 
 4. The Working Group shall, during the 2025-2026 interim: 26 
 (a) Conduct an assessment of the current and future state of the 27 
use of artificial intelligence systems in education;  28 
 (b) Develop guidance for school districts and charter schools on 29 
the safe use of artificial intelligence systems in education; and  30 
 (c) Develop a model policy for school districts and charter 31 
schools regarding the safe and effective use of artificial intelligence 32 
systems in a manner that benefits and does not negatively impact 33 
pupils and teachers.  34 
 5. The assessment required by paragraph (a) of subsection 4 35 
must: 36 
 (a) Assess the current state of artificial intelligence systems used 37 
by school districts and charter schools, including, without limitation, 38 
an assessment of: 39 
  (1) The artificial intelligence systems most commonly in use 40 
in school districts and charter schools, including, without limitation: 41 
   (I) The typical cost of those systems;  42 
   (II) The ownership structure of those systems;  43 
   (III) The ownership structure of material created by pupils 44 
and employees through the use of those systems;  45   
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   (IV) The licensing agreements for the use of those 1 
systems;  2 
   (V) The ability to access source code for those systems; 3 
and 4 
   (VI) The degree to which teachers were involved in the 5 
decision to use those systems;  6 
  (2) The extent to which artificial intelligence systems are a 7 
topic of instruction in developing class content; and 8 
  (3) Potential developments in the use of artificial intelligence 9 
systems in education;  10 
 (b) Identify current uses of artificial intelligence systems in 11 
educational settings, including, without limitation: 12 
  (1) Uses of artificial intelligence systems in a manner that is 13 
human-centered and that aids, furthers and improves teaching, 14 
learning and the work of teachers, including, without limitation, in a 15 
manner that does not exacerbate existing inequities;  16 
  (2) Uses of artificial intelligence systems in a manner that 17 
serves as a replacement for humans and which may negatively 18 
impact the development of pupils, jeopardize the security of data 19 
relating to pupils or put the jobs of teachers at risk; and  20 
  (3) Uses of strategies to ensure that there is sufficient 21 
opportunity for stakeholders to offer meaningful feedback before 22 
any form of an artificial intelligence system is introduced to pupils 23 
and teachers; 24 
 (c) Identify ways in which the State may support teachers in 25 
developing and sharing effective practices for the use of artificial 26 
intelligence systems that minimize risk and maximize benefits to 27 
pupils and teachers, which may include, without limitation, the 28 
establishment of committees or other similar bodies to study issues 29 
relating to the use of artificial intelligence systems in education; and  30 
 (d) On or before January 1, 2027, be submitted, along with any 31 
findings and recommendations relating to the assessment, to the 32 
Director of the Legislative Counsel Bureau for transmittal to the 33 
84th Session of the Legislature. 34 
 6. The guidance required by paragraph (b) of subsection 4 35 
must: 36 
 (a) Address the following subjects concerning the use of 37 
artificial intelligence systems: 38 
  (1) Academic integrity and plagiarism;  39 
  (2) Acceptable and unacceptable uses of artificial 40 
intelligence systems for pupils and teachers;  41 
  (3) The security and privacy of data relating to pupils and 42 
teachers;  43 
  (4) Access by parents or guardians to information that pupils 44 
have inputted into an artificial intelligence system; and 45   
 	– 14 – 
 
 
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  (5) The procurement of software to ensure the safety and 1 
privacy of pupils and teachers and the protection of data relating to 2 
pupils and teachers; and 3 
 (b) On or before January 1, 2026, be posted on the Internet 4 
website of the Department of Education. 5 
 7. The model policy required by paragraph (c) of subsection 4 6 
must address the following subjects concerning the use artificial 7 
intelligence systems: 8 
 (a) Academic integrity and plagiarism;  9 
 (b) Acceptable and unacceptable uses of artificial intelligence 10 
systems for pupils and teachers;  11 
 (c) The security and privacy of data relating to pupils and 12 
teachers;  13 
 (d) Access by parents or guardians to information that pupils 14 
have inputted into an artificial intelligence system; 15 
 (e) The procurement of software to ensure the safety and privacy 16 
of pupils and teachers and the protection of data relating to pupils 17 
and teachers;  18 
 (f) The effective use of artificial intelligence systems to support, 19 
and avoid risk to, teaching and learning; 20 
 (g) Effective strategies to ensure that artificial intelligence 21 
systems do not exacerbate existing inequities in the education 22 
system; and  23 
 (h) Effective strategies for professional development for 24 
teachers on the use of artificial intelligence systems.  25 
 8. In conducting the assessment required by paragraph (a) of 26 
subsection 4, the Working Group shall: 27 
 (a) Solicit input from teachers and pupils concerning their 28 
experiences in using artificial intelligence systems; and 29 
 (b) Conduct at least three public meetings to solicit input from 30 
pupils, families and other relevant stakeholders. 31 
 9. The Working Group shall comply with the provisions of 32 
chapter 241 of NRS and shall conduct all meetings and activities in 33 
accordance with that chapter.  34 
 10. The Department of Education shall provide the Working 35 
Group with such administrative support as is necessary to assist the 36 
Working Group in carrying out its duties pursuant to this section.  37 
 11. As used in this section, “artificial intelligence system” has 38 
the meaning ascribed to it in section 4 of this act.  39 
 Sec. 27.  The provisions of NRS 218D.380 do not apply to any 40 
provision of this act which adds or revises a requirement to submit a 41 
report to the Legislature. 42 
 Sec. 28.  1. This section becomes effective upon passage and 43 
approval.  44 
 2. Sections 1 to 27, inclusive, of this act become effective: 45   
 	– 15 – 
 
 
- 	*SB199* 
 (a) Upon passage and approval for the purpose of adopting any 1 
regulations and performing any other preparatory administrative 2 
tasks that are necessary to carry out the provisions of this act; and  3 
 (b) On January 1, 2026, for all other purposes.  4 
 3. Sections 7 and 8 of this act expire by limitation on the date 5 
on which the provisions of 42 U.S.C. § 666 requiring each state to 6 
establish procedures under which the state has authority to withhold 7 
or suspend, or to restrict the use of professional, occupational and 8 
recreational licenses of persons who: 9 
 (a) Have failed to comply with a subpoena or warrant relating to 10 
a proceeding to determine the paternity of a child or to establish or 11 
enforce an obligation for the support of a child; or  12 
 (b) Are in arrears in the payment for the support of one or more 13 
children, 14 
 are repealed by the Congress of the United States.  15 
 
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