New Jersey · Assembly Bill · 221st Legislature
AB5603
New Jersey Assembly No. 5603 — An Act concerning artificial intelligence systems and supplementing P.L.1960, c.39 (C.56:8-1 et seq.)

Status ● Introduced Effective N/A Passage Likelihood M

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
Enforced by the New Jersey Division of Consumer Affairs and the Attorney General under the Consumer Fraud Act (P.L.1960, c.39; C.56:8-1 et seq.). Enforcement is agency-initiated. The Consumer Fraud Act also permits private suits by injured parties for treble damages and costs.
Private Right of Action
Enforced by the New Jersey Division of Consumer Affairs and the Attorney General under the Consumer Fraud Act (P.L.1960, c.39; C.56:8-1 et seq.). Enforcement is agency-initiated. The Consumer Fraud Act also permits private suits by injured parties for treble damages and costs.
Penalties
First offense: up to $10,000; subsequent offense: up to $20,000. Under the Consumer Fraud Act, violations can result in cease and desist orders, punitive damages, treble damages, and costs awarded to the injured party. Attorney's fees are recoverable under the Consumer Fraud Act's private right of action.

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
Section 1
Prohibition on advertising AI as licensed mental health professional
DeployerDeveloper

(a) 1 A person who develops or deploys an artificial intelligenceArtificial intelligence"Artificial intelligence" means: (1) any artificial system that performs tasks under varying and unpredictable circumstances without significant human oversight, or that can learn from experience and improve performance when exposed to data sets; (2) an artificial system developed in computer software, physical hardware, or other context that solves tasks requiring human-like perception, cognition, planning, learning, communication, or physical action; (3) an artificial system designed to think or act like a human, including cognitive architectures and neural networks; (4) a set of techniques, including machine learning, that is designed to approximate a cognitive task; or (5) an artificial system designed to act rationally, including an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communicating, decision making, and acting.Section 1(c) system in the State shall not advertise or represent to the public that the system is or is able to act as a licensed mental health professionalLicensed mental health professional"Licensed mental health professional" means an individual licensed or otherwise authorized to practice a profession licensed or regulated by the Alcohol and Drug Counselor Committee, the State Board of Creative Arts and Activities Therapies, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the Professional Counselor Examiners Committee, the Certified Psychoanalysts Advisory Committee, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the New Jersey Board of Nursing, or any other entity created hereafter under Title 45 to license or otherwise regulate a profession that provides mental health care.Section 1(c).

(b) It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any person who develops or deploys an artificial intelligenceArtificial intelligence"Artificial intelligence" means: (1) any artificial system that performs tasks under varying and unpredictable circumstances without significant human oversight, or that can learn from experience and improve performance when exposed to data sets; (2) an artificial system developed in computer software, physical hardware, or other context that solves tasks requiring human-like perception, cognition, planning, learning, communication, or physical action; (3) an artificial system designed to think or act like a human, including cognitive architectures and neural networks; (4) a set of techniques, including machine learning, that is designed to approximate a cognitive task; or (5) an artificial system designed to act rationally, including an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communicating, decision making, and acting.Section 1(c) system in the State to violate the provisions of this act.

(c) As used in this act: "Artificial intelligenceArtificial intelligence"Artificial intelligence" means: (1) any artificial system that performs tasks under varying and unpredictable circumstances without significant human oversight, or that can learn from experience and improve performance when exposed to data sets; (2) an artificial system developed in computer software, physical hardware, or other context that solves tasks requiring human-like perception, cognition, planning, learning, communication, or physical action; (3) an artificial system designed to think or act like a human, including cognitive architectures and neural networks; (4) a set of techniques, including machine learning, that is designed to approximate a cognitive task; or (5) an artificial system designed to act rationally, including an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communicating, decision making, and acting.Section 1(c)" means: (1) any artificial system that performs tasks under varying and unpredictable circumstances without significant human oversight, or that can learn from experience and improve performance when exposed to data sets; (2) an artificial system developed in computer software, physical hardware, or other context that solves tasks requiring human-like perception, cognition, planning, learning, communication, or physical action; (3) an artificial system designed to think or act like a human, including cognitive architectures and neural networks; (4) a set of techniques, including machine learning, that is designed to approximate a cognitive task; or (5) an artificial system designed to act rationally, including an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communicating, decision making, and acting. "Licensed mental health professionalLicensed mental health professional"Licensed mental health professional" means an individual licensed or otherwise authorized to practice a profession licensed or regulated by the Alcohol and Drug Counselor Committee, the State Board of Creative Arts and Activities Therapies, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the Professional Counselor Examiners Committee, the Certified Psychoanalysts Advisory Committee, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the New Jersey Board of Nursing, or any other entity created hereafter under Title 45 to license or otherwise regulate a profession that provides mental health care.Section 1(c)" means an individual licensed or otherwise authorized to practice a profession licensed or regulated by the Alcohol and Drug Counselor Committee, the State Board of Creative Arts and Activities Therapies, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the Professional Counselor Examiners Committee, the Certified Psychoanalysts Advisory Committee, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the New Jersey Board of Nursing, or any other entity created hereafter under Title 45 to license or otherwise regulate a profession that provides mental health care.

Section 1 establishes the bill's sole substantive prohibition: no person who develops or deploys an AI system in New Jersey may advertise or represent to the public that the system is or is able to act as a licensed mental health professional. The definition of licensed mental health professional is expansive, covering practitioners regulated by nine named New Jersey licensing boards plus any future Title 45 entity that licenses a mental health care profession.

Violations are classified as unlawful practices under New Jersey's Consumer Fraud Act (C.56:8-1 et seq.), which supplies the full enforcement apparatus — Attorney General cease-and-desist authority, monetary penalties, and private treble-damages actions — without the bill needing to create its own enforcement mechanism. The artificial intelligence definition is notably broad, encompassing five alternative functional descriptions that collectively cover nearly any software system that learns from data or performs cognitive tasks.

Compliance actions 1 item
1
Developers and deployers of AI systems in New Jersey must not advertise or represent to the public that the system is or is able to act as a licensed mental health professionalLicensed mental health professional"Licensed mental health professional" means an individual licensed or otherwise authorized to practice a profession licensed or regulated by the Alcohol and Drug Counselor Committee, the State Board of Creative Arts and Activities Therapies, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the Professional Counselor Examiners Committee, the Certified Psychoanalysts Advisory Committee, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the New Jersey Board of Nursing, or any other entity created hereafter under Title 45 to license or otherwise regulate a profession that provides mental health care.Section 1(c).
CP-01.9
Section 2
Effective date and anticipatory administrative action

This act shall take effect on the first day of the sixth month next following the date of enactment, except that the Director of the Division of Consumer Affairs may take any anticipatory action in advance as shall be necessary for the implementation of this act.

Section 2 provides that the act takes effect on the first day of the sixth month following enactment and authorizes the Director of the Division of Consumer Affairs to take anticipatory administrative action necessary for implementation before that date. This is a standard New Jersey delayed-effectiveness provision.

Passage Likelihood

Medium
Status Introduced
Chamber No passage
Committee Passed
Majority party Yes
Bipartisan No
Prior session None

Legislative History

2025-05-05 Introduced, Referred to Assembly Science, Innovation and Technology Committee
2025-06-16 Reported out of Assembly Committee, 2nd Reading

Entry Last Reviewed

2026-05-20
AI generated