Maryland · House Bill · 2025 Regular Session
HB823
Maryland House Bill 823 — Generative Artificial Intelligence – Training Data Transparency

Status ● Failed Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
No enforcement mechanism is specified in this bill. The bill adds a training-data transparency obligation to an existing subtitle of the State Finance and Procurement Article but does not designate an enforcement authority, create penalties, or authorize a private right of action for the new section.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
No penalties, damages, or remedies are specified in this bill.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Md. Code, State Fin. & Proc. § 3.5-801
Definitions — addition of generative artificial intelligence

(d) "Generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence" means artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence.Md. Code, State Fin. & Proc. § 3.5-801(d)" means artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5-801(c) that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5-801(c).

This section amends the existing definitions provision of Maryland's AI governance subtitle to add a new defined term, generative artificial intelligence, and to re-letter the existing definitions accordingly. The new definition covers AI that generates derived synthetic content — text, images, video, and audio — emulating the structure and characteristics of its training data. No new compliance obligation is created by this section; it provides the definitional foundation for the operative training-data transparency requirement in § 3.5-807.

Md. Code, State Fin. & Proc. § 3.5-807
Training data transparency for generative AI systems
Developer

(A)(1)–(3) In this section the following words have the meanings indicated. (2) "DeveloperDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2)" means a person or a unit of State or local government that designs, codes, produces, or substantially modifiesSubstantially modifies"Substantially modifies" means to release a new version of or update to a generative artificial intelligence system that materially changes the functionality, performance, or training data of a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(3) a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1). (3) "Substantially modifiesSubstantially modifies"Substantially modifies" means to release a new version of or update to a generative artificial intelligence system that materially changes the functionality, performance, or training data of a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(3)" means to release a new version of or update to a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1) that materially changes the functionality, performance, or training data of a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1).

(B)(1)–(2) This section applies to a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1) that was released on or after January 1, 2022, for use by the general public in the State, regardless of whether the terms of that use require compensation. (2) This section does not apply to a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1) that is exclusively made for: (I) use by hospital medical staff; (II) use by an affiliate of the developer of the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1); (III) ensuring physical safety of an individual; (IV) protecting confidential personal information; (V) detecting, resisting, or prosecuting malicious, deceptive, fraudulent, or illegal actions; (VI) the operation of aircraft in the national airspace; or (VII) use by a federal entity to support national security, military, or other defense purposes.

(C)(1)–(12) 1 On or before January 1, 2026, and before each time thereafter a developerDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) releases or substantially modifiesSubstantially modifies"Substantially modifies" means to release a new version of or update to a generative artificial intelligence system that materially changes the functionality, performance, or training data of a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(3) a generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1), the developer of the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1) shall post on the website of the developerDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) documentation detailing the data and datasets used to train the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1), including: (1) the sources or owners of the data; (2) a description of how the data furthers the intended purpose of the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1); (3) if a dataset used for training is: (I) static, the number of data points included within the dataset; or (II) dynamic, an estimate of the number of data points included within the dataset; (4) if a dataset: (I) includes labels, the types of labels used in the dataset; or (II) does not include labels, the general characteristics of the datapoints within the dataset; (5) whether any data are in the public domain or are protected by copyright, trademark, or patent; (6) whether the developerDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) purchased or licensed the data; (7) whether the data include any personal information; (8) whether the data include aggregate consumer information; (9) whether the developerDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) cleaned, processed, or modified that data and why the developerDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) cleaned, processed, or modified the data; (10) (I) the time period during which the data were collected; and (II) whether the data collection is still ongoing; (11) when the data were first used during the development of the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1); and (12) whether the generative artificial intelligence systemGenerative artificial intelligence systemA generative artificial intelligence system is implicitly defined as a system employing generative artificial intelligence — i.e., artificial intelligence that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the data used to train the artificial intelligence — that is released for use by the general public in the State.Md. Code, State Fin. & Proc. § 3.5-807(B)(1) used or uses synthetic data generation.

Section 3.5-807 is the operative heart of the bill, imposing a detailed public training-data documentation requirement on developers of generative AI systems available to the general public in Maryland. The obligation applies to systems released on or after January 1, 2022, and requires documentation to be posted on the developer's website by January 1, 2026, and before each subsequent release or substantial modification.

The required disclosures are granular: sources or owners of data, purpose alignment, dataset size (static or dynamic), label types, IP status (public domain, copyright, trademark, or patent), licensing status, presence of personal information and aggregate consumer information, processing and cleaning methods, collection timeframes, first use during development, and synthetic data generation. The scope carve-outs are notable — hospital medical staff systems, developer-affiliate-only systems, physical safety, confidential information protection, fraud detection, national airspace, and federal defense are all exempted.

Compliance actions 1 item
1
DevelopersDeveloper"Developer" means a person or a unit of State or local government that designs, codes, produces, or substantially modifies a generative artificial intelligence system.Md. Code, State Fin. & Proc. § 3.5-807(A)(2) must publish on their website, by January 1, 2026, and before each subsequent release or substantial modification, documentation detailing the data and datasets used to train the generative AI system — including data sources, purpose alignment, dataset size, label types, IP status, licensing status, presence of personal information and aggregate consumer information, processing methods, collection timeframes, first use during development, and synthetic data generation.
T-03.2

Passage Likelihood

Failed
Status Failed
Final action Hearing 2/18 at 1:00 p.m.

Legislative History

2025-01-29 First Reading Economic Matters
2025-01-29 Hearing 2/18 at 1:00 p.m.

Entry Last Reviewed

2026-05-20
AI generated