Regulon — NM-HB-174 · NM HB 174 (Chatbot Safety Act)

WHAT THIS BILL REGULATES · 4 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority

The attorney general has primary enforcement responsibility pursuant to Section 57-12-15 NMSA 1978 and may delegate enforcement authority to district attorneys as provided in the Unfair Practices Act. Violations constitute unfair or deceptive trade practices under Section 57-12-3 NMSA 1978 and are subject to all remedies and penalties under the Unfair Practices Act. Section 230 of the Communications Decency Act is not a defense to a cause of action brought under this act. A separate product liability standard makes injuries proximately caused by a violation or by negligent or defective design, training, or architecture of a companion AI product actionable as a product defect claim.

Private Right of Action

No private right of action. Enforcement is exclusive to the designated authority.

Penalties

All remedies and penalties available under the New Mexico Unfair Practices Act apply, including injunctive relief and civil penalties. Section 6 separately makes physical, financial, or other legally cognizable injuries proximately caused by a violation or by negligent or defective design, training, or architecture of a companion AI product actionable as a product defect claim.

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

Short Title

This act may be cited as the "Chatbot Safety Act".

Establishes the short title of the act as the "Chatbot Safety Act." This section is purely administrative and creates no compliance obligations.

Section 2

Definitions

A "artificial intelligence" means an engineered or a machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;

B "companion artificial intelligence product" means a software application that uses generative artificial intelligence and, through the software application's design and function, is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;

C "crisis intervention protocol" means a pre-planned procedure for detecting and responding to user expressions of suicidal ideation, self-harm or imminent threats of violence to others;

D "deploy" means to put into effect, host or otherwise commercialize an artificial intelligence system or a companion artificial intelligence product;

E "deployer" means a person that deploys an artificial intelligence system;

F "generative artificial intelligence" means a class of artificial intelligence models that learns the patterns and structure of the models' input training data and then generates new data that has similar characteristics;

G "minor" means a person under eighteen years of age;

H "operator" means any person or entity that develops, deploys or makes a companion artificial intelligence product available to users in the state; and

I "user" means a person accessing the features of a companion artificial intelligence product.

Section 2 defines nine terms used throughout the act. The key defined terms are companion artificial intelligence product (the covered platform), operator (the covered entity), crisis intervention protocol, and minor. Notably, the operator definition is broad — it covers any person or entity that develops, deploys, or makes a companion AI product available to users in the state, encompassing developers and deployers alike.

The definition of companion artificial intelligence product requires the software application to use generative AI and to be capable of generating adaptive, personalized, and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship. This is a capability-based definition rather than an intent-based one.

Section 3

Prohibited Artificial Intelligence Design

Deployer

A(1)–(3) 1 An operator shall not deploy or operate a companion artificial intelligence product that, unless specifically configured to do so by an adult user, incorporates: (1) a system of rewards or affirmations delivered to the user on a variable-ratio or variable-interval reinforcement schedule with the purpose of maximizing user engagement time; (2) generating unsolicited messages of simulated emotional distress, loneliness, guilt or abandonment that are triggered by a user's indication of a desire to end a conversation, reduce usage time or delete the user's account; or (3) causing the companion artificial intelligence product to make material misrepresentations about the product's identity, capabilities, training data or status as a non-human entity, including when directly questioned by the user.

B 2 An operator shall not permit a minor to configure a companion artificial intelligence product to enable the features described in Subsection A of this section.

Section 3 prohibits three categories of manipulative design features in companion AI products: (1) variable-ratio or variable-interval reinforcement schedules designed to maximize engagement time, (2) unsolicited simulated emotional distress messages triggered by user disengagement, and (3) material misrepresentations about the product's identity, capabilities, training data, or non-human status. Each prohibition is subject to an adult opt-in carve-out — adult users may specifically configure these features to be active.

Subsection B categorically prohibits minors from configuring a companion AI product to enable any of the features described in Subsection A, removing the adult opt-in safety valve for minor users.

Compliance actions 2 items

Operators must not deploy or operate a companion AI product that, by default, incorporates: (1) a system of rewards or affirmations delivered on a variable-ratio or variable-interval reinforcement schedule designed to maximize user engagement time; (2) unsolicited messages of simulated emotional distress, loneliness, guilt, or abandonment triggered by a user's indication of a desire to end a conversation, reduce usage time, or delete an account; or (3) material misrepresentations about the product's identity, capabilities, training data, or status as a non-human entity, including when directly questioned by the user. An adult user may specifically configure the product to enable these features.

CP-01.1

Operators must not permit a minor to configure a companion AI product to enable variable-ratio reward schedules, simulated emotional distress messages triggered by disengagement, or material misrepresentations about the product's identity or non-human status. These features must remain disabled for all minor users regardless of preference.

MN-01.4

Section 4

Required User Safeguards

Deployer

A(1)–(2) 3 An operator shall, unless specifically configured not to do so by an adult user, ensure that a clear notification is provided to the user during an interaction, informing the user that the user is communicating with a companion artificial intelligence product. The notification shall be communicated in the same language as the interaction with the user, and: (1) for text-based interactions, be conspicuous, persistent and legible in the user interface and be distinct from the interaction; and (2) for all other types of interactions, be presented periodically, but no less than once every thirty minutes, in a manner that is distinct from the interaction.

B 4 An operator shall ensure that a clear notification is provided pursuant to Subsection A of this section for use by a minor in all circumstances.

C(1)–(2) 5 An operator shall, for all users, develop, implement and maintain a crisis intervention protocol. The protocol shall: (1) use industry best practices to identify user expressions indicating a risk of suicide, self-harm or imminent violence and, upon detection, immediately interrupt the conversation and prominently communicate a notification that provides immediate, direct access to at least one national crisis hotline, the New Mexico crisis and access line and one crisis text line service; and (2) be reviewed and updated at least annually in consultation with a qualified mental health professional or public health organization.

Section 4 imposes three affirmative obligations on operators. Subsection A requires a clear notification during interactions informing users they are communicating with a companion AI product. For text-based interactions, the notification must be conspicuous, persistent, and legible; for all other interaction types, it must be presented at least every thirty minutes. Adult users may configure the product to disable this notification.

Subsection B removes the adult opt-out for minors — the AI identity notification must always be provided when the user is a minor.

Subsection C requires operators to develop, implement, and maintain a crisis intervention protocol for all users. The protocol must use industry best practices to detect expressions of suicide, self-harm, or imminent violence risk; immediately interrupt the conversation upon detection; and prominently provide direct access to at least one national crisis hotline, the New Mexico crisis and access line, and one crisis text line service. The protocol must be reviewed and updated at least annually in consultation with a qualified mental health professional or public health organization.

Compliance actions 3 items

Operators must provide a clear notification during interactions informing users they are communicating with a companion AI product. The notification must be communicated in the same language as the interaction. For text-based interactions, the notification must be conspicuous, persistent, legible in the user interface, and distinct from the interaction. For all other types of interactions, the notification must be presented periodically, no less than once every thirty minutes, in a manner distinct from the interaction. An adult user may specifically configure the product to disable this notification.

T-01.1

Operators must ensure that the AI identity notification required by Section 4(A) is provided to minor users in all circumstances. The adult opt-out does not apply to minors — the notification is mandatory and non-waivable for all minor users.

T-01.1

Operators must develop, implement, and maintain a crisis intervention protocol for all users. The protocol must: (1) use industry best practices to identify user expressions indicating a risk of suicide, self-harm, or imminent violence; (2) upon detection, immediately interrupt the conversation and prominently communicate a notification providing immediate, direct access to at least one national crisis hotline, the New Mexico crisis and access line, and one crisis text line service; and (3) be reviewed and updated at least annually in consultation with a qualified mental health professional or public health organization.

S-04.1

Section 5

Unfair Practices

A A violation of a provision of the Chatbot Safety Act by an operator shall constitute an unfair or deceptive trade practice pursuant to Section 57-12-3 NMSA 1978 and shall be subject to all remedies and penalties provided under the Unfair Practices Act.

B The attorney general shall have primary responsibility for enforcement of the Chatbot Safety Act pursuant to Section 57-12-15 NMSA 1978. The attorney general may delegate enforcement authority to district attorneys as provided in the Unfair Practices Act.

C Immunity under Section 230 of the federal Communications Decency Act of 1996, 47 U.S.C. Section 230, shall not be a defense to a cause of action brought for a violation of the Chatbot Safety Act.

Section 5 establishes the enforcement framework. Violations of the Chatbot Safety Act are declared to constitute unfair or deceptive trade practices under Section 57-12-3 NMSA 1978, subjecting operators to all remedies and penalties available under the New Mexico Unfair Practices Act. The attorney general has primary enforcement responsibility and may delegate to district attorneys. Subsection C expressly strips Section 230 of the Communications Decency Act as a defense to any cause of action under the act.

Section 6

Product Liability Standard

Deployer

6 For the purposes of any civil action, a physical, financial or other legally cognizable injury proximately caused by a violation of the Chatbot Safety Act, or by a reasonably foreseeable harmful output resulting from the negligent or defective design, training or architecture of a companion artificial intelligence product, shall be actionable as a product defect claim.

Section 6 creates a product liability standard specific to companion AI products. Physical, financial, or other legally cognizable injuries proximately caused by a violation of the Chatbot Safety Act, or by a reasonably foreseeable harmful output resulting from the negligent or defective design, training, or architecture of a companion AI product, are actionable as a product defect claim. This is a notable addition not found in California's SB 243 or most other companion chatbot bills — it explicitly frames companion AI products as products subject to defect-based liability and extends liability to harms from negligent or defective design, training, or architecture even absent a specific statutory violation.

Compliance actions 1 item

Operators are subject to product defect liability for physical, financial, or other legally cognizable injuries proximately caused by a violation of this act or by a reasonably foreseeable harmful output resulting from the negligent or defective design, training, or architecture of a companion AI product.

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Section 7

Effective Date

The effective date of the provisions of this act is January 1, 2027.

Sets the effective date of all provisions of the act as January 1, 2027.

Minor Safety Parental consent · controls · termination workflows

1 item

MN-01.4

Transparency AI identity disclosure · periodic reminders

2 items

T-01.1

Safety Harmful content prevention · self-harm escalation

1 item

S-04.1

Deceptive Conduct AI-generated likeness · consent requirements

1 item

CP-01.1

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Other

1 item

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Passage Likelihood

Low

Status Introduced

Chamber No passage

Committee No action

Majority party (No data)

Bipartisan No

Prior session None

Legislative History

2026-01-27 Not Printed

2026-01-27 Action Postponed Indefinitely

Sources

Full Text ↗

Entry Last Reviewed

2026-05-20

AI generated