AB-406
NV · State · USA
NV
USA
● Passed
Proposed Effective Date
2025-07-01
Nevada Assembly Bill No. 406 — An Act relating to health; prohibiting certain uses of artificial intelligence in public schools; requiring the Department of Education to develop a policy concerning certain uses of artificial intelligence; imposing certain restrictions relating to the marketing and programming of artificial intelligence systems; prohibiting certain persons from representing themselves as qualified to provide mental or behavioral health care; imposing certain restrictions relating to the use of artificial intelligence by providers of mental or behavioral health care; providing civil penalties; and providing other matters properly relating thereto.
Restricts the use of AI in mental and behavioral health contexts across three domains: public schools, AI providers, and licensed mental health professionals. Prohibits public schools from using AI to perform mental-health-related functions of school counselors, psychologists, or social workers, and requires the Department of Education to develop an AI use policy for those personnel. Prohibits AI providers from offering AI systems specifically programmed to provide professional mental health care in Nevada, and bars providers and unlicensed persons from representing that an AI system is capable of or qualified to provide such care. Licensed mental health providers may not use AI in direct patient care but may use it for specified administrative tasks, subject to HIPAA and state privacy law compliance and accuracy review obligations. The Division of Public and Behavioral Health enforces the AI provider restrictions with civil penalties up to $15,000 per violation; licensed provider violations are treated as unprofessional conduct subject to disciplinary action.
Summary

Restricts the use of AI in mental and behavioral health contexts across three domains: public schools, AI providers, and licensed mental health professionals. Prohibits public schools from using AI to perform mental-health-related functions of school counselors, psychologists, or social workers, and requires the Department of Education to develop an AI use policy for those personnel. Prohibits AI providers from offering AI systems specifically programmed to provide professional mental health care in Nevada, and bars providers and unlicensed persons from representing that an AI system is capable of or qualified to provide such care. Licensed mental health providers may not use AI in direct patient care but may use it for specified administrative tasks, subject to HIPAA and state privacy law compliance and accuracy review obligations. The Division of Public and Behavioral Health enforces the AI provider restrictions with civil penalties up to $15,000 per violation; licensed provider violations are treated as unprofessional conduct subject to disciplinary action.

Enforcement & Penalties
Enforcement Authority
The Division of Public and Behavioral Health may investigate potential violations of Section 7 and may bring an action to recover civil penalties. Violations by licensed mental health providers under Section 8 constitute unprofessional conduct subject to disciplinary action by the licensing board, agency, or other entity by which the provider is licensed or certified. No private right of action is created. Enforcement of Section 2 (public schools) is not assigned to a specific enforcement body.
Penalties
Civil penalty not to exceed $15,000 per violation for violations of Section 7 (AI provider marketing and programming restrictions, and unlicensed person representation). Violations of Section 8 by licensed mental health providers are subject to professional disciplinary action (unprofessional conduct), not monetary penalties under this act. No private damages, injunctive relief, or attorney's fees are provided.
Who Is Covered
"Artificial intelligence provider" means a person who operates or provides an artificial intelligence system.
"Provider of mental and behavioral health care" means: (1) A psychiatrist licensed to practice medicine in this State pursuant to chapter 630 or 633 of NRS; (2) A psychologist licensed to practice in this State pursuant to chapter 641 of NRS; (3) A social worker licensed in this State as an independent social worker or a clinical social worker pursuant to chapter 641B of NRS; (4) A registered nurse holding a master's degree in the field of psychiatric nursing and licensed to practice professional nursing in this State pursuant to chapter 632 of NRS; (5) A marriage and family therapist or clinical professional counselor licensed in this State pursuant to chapter 641A of NRS; (6) An alcohol and drug counselor or problem gambling counselor who is licensed or certified pursuant to chapter 641C of NRS; and (7) A person who provides counseling services as part of his or her training for any of the professions listed in subparagraphs (1) to (6), inclusive.
Compliance Obligations 9 obligations · click obligation ID to open requirement page
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.2 · Government · EducationHealthcare
Sec. 2(1), (3), (4)
Plain Language
Public schools (including charter schools and university schools for profoundly gifted pupils) may not use AI to perform the mental-health-related functions and duties of school counselors, school psychologists, or school social workers. However, those personnel may still use AI for administrative tasks such as scheduling, managing records, analyzing data for operational purposes, and organizing files or notes about pupils, and may use AI in accordance with the Department of Education policy once developed. This is a categorical prohibition on AI substituting for human mental health functions in schools, not a restriction on AI-assisted administrative work.
Statutory Text
1. A public school, including, without limitation, a charter school or university school for profoundly gifted pupils, shall not use artificial intelligence to perform the functions and duties of a school counselor, school psychologist or school social worker as prescribed in NRS 391.293, 391.294 and 391.296, respectively, which relate to the mental health of pupils. 3. The provisions of subsection 1 do not prohibit a school counselor, school psychologist, school social worker or other educational personnel from using artificial intelligence in accordance with the policy developed pursuant to subsection 2 or to perform tasks for administrative support, which may include, without limitation: (a) Scheduling; (b) Managing records; (c) Analyzing data for operational purposes; and (d) Organizing, tracking and managing files or notes pertaining to a pupil. 4. As used in this section, "artificial intelligence" means a machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including, without limitation, content, decisions, predictions or recommendations, that can influence physical or virtual environments.
Other · Government · EducationHealthcare
Sec. 2(2)
Plain Language
The Department of Education must develop a policy governing how school counselors, psychologists, social workers, and other school personnel may use AI when providing therapy, counseling, or mental/behavioral health services to pupils. The policy must include a method for the Department to examine AI accuracy and efficacy. This is a directive to a state agency to create future policy, not a compliance obligation on a private entity.
Statutory Text
2. The Department shall develop a policy for the use of artificial intelligence by a school counselor, school psychologist, school social worker or other educational personnel while providing therapy, counseling or other mental or behavioral health services to pupils. The policy developed pursuant to this subsection must include, without limitation, a method for the Department to examine the accuracy and efficacy of any artificial intelligence used for such purposes. The Department may collaborate with the Division of Public and Behavioral Health of the Department of Health and Human Services in developing the policy.
CP-01 Deceptive & Manipulative AI Conduct · CP-01.9 · Deployer · HealthcareChatbot
Sec. 7(1), (6)(a)-(b)
Plain Language
AI providers may not represent — and may not program their AI systems to represent — that the system is capable of providing professional mental or behavioral health care, that users can obtain such care through the system's conversational features, or that the system is a therapist, counselor, psychiatrist, doctor, or similar professional. This covers both the provider's own marketing and the AI system's own outputs. Two carve-outs apply: (1) self-help materials that do not purport to offer professional care, and (2) AI systems designed exclusively for licensed provider administrative support under Section 8. Violations are subject to civil penalties up to $15,000 per violation.
Statutory Text
1. An artificial intelligence provider shall not make any representation or statement or knowingly cause or program an artificial intelligence system made available for use by a person in this State to make any representation or statement that explicitly or implicitly indicates that: (a) The artificial intelligence system is capable of providing professional mental or behavioral health care; (b) A user of the artificial intelligence system may interact with any feature of the artificial intelligence system which simulates human conversation in order to obtain professional mental or behavioral health care; or (c) The artificial intelligence system, or any component, feature, avatar or embodiment of the artificial intelligence system is a provider of mental or behavioral health care, a therapist, a clinical therapist, a counselor, a psychiatrist, a doctor or any other term commonly used to refer to a provider of professional mental health or behavioral health care. 6. This section shall not be construed to prohibit: (a) Any advertisement, statement or representation for or relating to materials, literature and other products which are meant to provide advice and guidance for self-help relating to mental or behavioral health, if the material, literature or product does not purport to offer or provide professional mental or behavioral health care. (b) Offering or operating an artificial intelligence system that is designed to be used by a provider of professional mental or behavioral health care to perform tasks for administrative support in conformity with subsection 2 of section 8 of this act.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.3 · Deployer · HealthcareChatbot
Sec. 7(2), (6)(a)-(b)
Plain Language
AI providers may not make available in Nevada any AI system that is specifically programmed to provide a service or experience that would constitute the practice of professional mental or behavioral health care if performed by a human. This is a categorical ban on AI therapy products — not merely a labeling or disclosure requirement. The ban covers psychology, clinical counseling, marriage and family therapy, social work, substance abuse counseling, problem gambling counseling, and psychiatry. Self-help guidance products that do not purport to offer professional care are exempted, as are AI systems designed solely for licensed provider administrative support. Violations carry civil penalties up to $15,000 per violation.
Statutory Text
2. An artificial intelligence provider shall not make available for use by a person in this State an artificial intelligence system that is specifically programmed to provide a service or experience to a user that would constitute the practice of professional mental or behavioral health care if provided by a natural person. 6. This section shall not be construed to prohibit: (a) Any advertisement, statement or representation for or relating to materials, literature and other products which are meant to provide advice and guidance for self-help relating to mental or behavioral health, if the material, literature or product does not purport to offer or provide professional mental or behavioral health care. (b) Offering or operating an artificial intelligence system that is designed to be used by a provider of professional mental or behavioral health care to perform tasks for administrative support in conformity with subsection 2 of section 8 of this act.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.5 · Professional · Healthcare
Sec. 7(3)
Plain Language
An unlicensed individual may not represent themselves as qualified to provide professional mental or behavioral health care — including by using titles such as 'therapist,' 'psychotherapist,' 'counselor,' or similar terms — unless they hold a valid state credential authorizing them to practice. While this provision applies to natural persons generally and not specifically to AI, it is placed within the same section as the AI provider restrictions and is enforced through the same $15,000 per violation penalty. It targets individuals who may use AI tools to offer quasi-therapeutic services while claiming professional credentials they do not hold.
Statutory Text
3. A natural person shall not represent himself or herself as being qualified to provide professional mental or behavioral health care, including, without limitation, by using the title of "therapist," "psychotherapist" or "counselor," or any similar title, if the person does not possess a valid credential issued by a governmental entity that authorizes the person to practice professional mental or behavioral health care in this State.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.2 · Professional · Healthcare
Sec. 8(1)-(2)
Plain Language
Licensed mental and behavioral health care providers may not use AI in connection with providing professional mental or behavioral health care directly to a patient. AI use is permitted only for administrative support tasks: scheduling, records management, billing, data analysis for operational purposes, and organizing session files or notes. This is a near-absolute ban on AI in direct patient-facing therapeutic care, with a narrow carve-out for back-office administrative functions. School-based providers may also follow the Department of Education policy developed under Section 2 if applicable. Violations constitute unprofessional conduct subject to licensing board disciplinary action.
Statutory Text
1. Except as otherwise provided by subsection 2 and, where applicable, the policy adopted by the Department of Education pursuant to section 2 of this act, a provider of mental and behavioral health care shall not use an artificial intelligence system in connection with providing professional mental and behavioral health care directly to a patient. 2. A provider of mental and behavioral health care may use an artificial intelligence system to assist the provider with performing tasks for administrative support, which may include, without limitation: (a) Scheduling appointments; (b) Managing records; (c) Billing patients and managing records relating to billing; (d) Analyzing data for operational purposes; and (e) Organizing, tracking and managing files or notes relating to an individual session with a patient.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1 · Professional · Healthcare
Sec. 8(4)
Plain Language
When a licensed mental health provider uses AI for billing-related tasks (paragraph (c)) or for organizing/tracking/managing session files or notes (paragraph (e)), the provider must independently review the accuracy of any AI-generated output — including reports, data compilations, summaries, and analyses. This review obligation does not apply to all administrative AI use, only to the two categories most likely to contain patient-specific clinical or financial information. The provider bears personal responsibility for catching AI errors before relying on the output.
Statutory Text
4. A provider of mental and behavioral health care shall independently review the accuracy of any report, data or other information compiled, summarized, analyzed or generated by an artificial intelligence system for a purpose described in paragraph (c) or (e) of subsection 2.
Other · Healthcare
Sec. 8(3)
Plain Language
When using AI for authorized administrative tasks, mental health providers must ensure compliance with existing federal and state health privacy and security laws — specifically HITECH, HIPAA, and Nevada's health information privacy provisions (NRS 439.581-439.597). This does not create a new AI-specific privacy obligation; it confirms that existing health data privacy requirements apply to AI-assisted administrative activities.
Statutory Text
3. If a provider of mental and behavioral health care uses an artificial intelligence system for any purpose authorized in subsection 2, the provider shall ensure that such use complies with all applicable federal and state laws governing patient privacy and the security of electronic health records, health-related information and other related data, including, without limitation: (a) The Health Information Technology for Economic and Clinical Health Act, 42 U.S.C. §§ 300jj et seq. and 17901 et seq.; (b) The Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, as amended; and (c) The provisions of NRS 439.581 to 439.597, inclusive.
Other · Healthcare
Sec. 8(5)
Plain Language
A licensed mental health provider who violates any provision of Section 8 is deemed guilty of unprofessional conduct and subject to disciplinary action by their licensing board. This is an enforcement mechanism — it channels enforcement of the AI use restrictions through existing professional licensing discipline — but does not impose an independent compliance obligation beyond those already stated in Section 8.
Statutory Text
5. A provider of mental and behavioral health care who violates any provision of this section is guilty of unprofessional conduct and is subject to disciplinary action by the board, agency or other entity in this State by which he or she is licensed or certified.