S-0788
SC · State · USA
SC
USA
● Pending
South Carolina S 788 — A Bill to Amend the South Carolina Code of Laws by Adding Article 5 to Chapter 1, Title 40, So As to Provide Definitions Related to Artificial Intelligence and Therapy or Psychotherapy
SC S 788 regulates the use of artificial intelligence in therapy and psychotherapy services. It prohibits AI from making independent therapeutic decisions, directly interacting with clients in therapeutic communication, generating treatment plans without licensed professional review, or detecting emotions or mental states. Licensed professionals may use AI only for administrative or supplementary support, and must obtain written informed consent before using AI to record or transcribe therapeutic sessions. No individual, corporation, or entity may offer therapy or psychotherapy through AI unless services are conducted by a licensed professional. Violations are enforced by the appropriate licensing board, with civil penalties up to $10,000 per violation.
Summary

SC S 788 regulates the use of artificial intelligence in therapy and psychotherapy services. It prohibits AI from making independent therapeutic decisions, directly interacting with clients in therapeutic communication, generating treatment plans without licensed professional review, or detecting emotions or mental states. Licensed professionals may use AI only for administrative or supplementary support, and must obtain written informed consent before using AI to record or transcribe therapeutic sessions. No individual, corporation, or entity may offer therapy or psychotherapy through AI unless services are conducted by a licensed professional. Violations are enforced by the appropriate licensing board, with civil penalties up to $10,000 per violation.

Enforcement & Penalties
Enforcement Authority
The appropriate licensing board for each licensed professional has authority to investigate any actual, alleged, or suspected violation. Enforcement is agency-initiated through the licensing board's investigative authority. No private right of action is created.
Penalties
Civil penalty not to exceed $10,000 per violation, assessed by the appropriate licensing board. The amount is based on the degree of harm and the circumstances of the violation. Payment is due within sixty days of imposition. No private damages, injunctive relief, or attorney fees provisions.
Who Is Covered
"Licensed professional" means an individual who holds a valid license issued by this State to provide therapy or psychotherapy services, including: (a) a licensed clinical psychologist; (b) a licensed clinical social worker; (c) a licensed social worker; (d) a licensed psychiatrist; (e) a licensed professional counselor; (f) a licensed marriage and family therapist; (g) addiction counselor; and (h) any other professional authorized by this State to provide therapy or psychotherapy services.
Compliance Obligations 6 obligations · click obligation ID to open requirement page
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.4 · Professional · Healthcare
S.C. Code § 40-1-710
Plain Language
Before a licensed therapist or psychotherapist may use AI to record or transcribe a client's therapeutic session for supplementary support purposes, the professional must provide written notice to the patient (or their legally authorized representative) disclosing both that AI will be used and the specific purpose of its use. The patient must then provide written consent. Without both written notice and written consent, AI-assisted recording or transcription of therapeutic sessions is prohibited. This applies only to supplementary support involving recording or transcription — administrative support tasks that do not involve recording sessions are not covered by this provision.
Statutory Text
A licensed professional shall not be permitted to use artificial intelligence to assist in providing supplementary support in therapy or psychotherapy where the client's therapeutic session is recorded or transcribed unless: (1) the patient or the patient's legally authorized representative is informed in writing: (a) that artificial intelligence will be used; and (b) of the specific purpose for which the artificial intelligence tool or system will be used; and (2) the patient or the patient's legally authorized representative provides written consent to the use of artificial intelligence.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.3 · ProfessionalDeployer · Healthcare
S.C. Code § 40-1-720(A)
Plain Language
No individual, corporation, or entity may offer, advertise, or provide therapy or psychotherapy services in South Carolina — including through internet-based AI — unless those services are conducted by a state-licensed professional. This effectively prohibits standalone AI therapy products that operate without a licensed professional conducting the services. The prohibition extends to advertising such services, not merely delivering them. Religious counseling and peer support are carved out by the definitions section.
Statutory Text
(A) An individual, corporation, or entity may not provide, advertise, or otherwise offer therapy or psychotherapy services, including through the use of internet-based artificial intelligence, to the public in this State unless the therapy or psychotherapy services are conducted by a licensed professional.
HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1HC-02.2 · Professional · Healthcare
S.C. Code § 40-1-720(B)
Plain Language
Licensed professionals face four categorical prohibitions on AI use in therapy: (1) AI may not make independent therapeutic decisions; (2) AI may not directly interact with clients in any form of therapeutic communication — a broadly defined term covering virtually any clinical interaction intended to diagnose, treat, or address mental health; (3) AI may not generate treatment plans or therapeutic recommendations without the licensed professional's review and approval; and (4) AI may not detect emotions or mental states. The overall framing limits AI use to administrative and supplementary support roles, with the licensed professional maintaining full responsibility for all AI outputs. The emotion detection prohibition is notably absolute — it applies regardless of whether the professional reviews the output.
Statutory Text
(B) A licensed professional may use artificial intelligence only to the extent the use meets the requirements of Section 40-1-710. A licensed professional may not allow artificial intelligence to: (1) make independent therapeutic decisions; (2) directly interact with clients in any form of therapeutic communication; (3) generate therapeutic recommendations or treatment plans without review and approval by the licensed professional; or (4) detect emotions or mental states.
D-01 Automated Processing Rights & Data Controls · Professional · Healthcare
S.C. Code § 40-1-730
Plain Language
All records maintained by a licensed professional — including AI-generated records — and all communications between a client and a licensed professional are confidential. Disclosure is permitted only as required under South Carolina's existing mental health confidentiality statute (§ 44-22-100). While this reinforces existing confidentiality law, it extends the obligation explicitly to cover records created or maintained with AI assistance, creating a data governance obligation in the AI context that practitioners must observe.
Statutory Text
All records kept by a licensed professional and all communications between an individual seeking therapy or psychotherapy services and a licensed professional shall be confidential and shall not be disclosed except as required pursuant to Section 44-22-100.
Other · Healthcare
S.C. Code § 40-1-740
Plain Language
Three categories are carved out from the article's AI-in-therapy obligations: (1) religious counseling provided by clergy acting within their religious duties that is not represented as clinical mental health services; (2) peer support services by individuals with lived experience; and (3) self-help materials and educational resources that do not purport to offer therapy. This provision creates no new compliance obligation — it narrows the article's scope.
Statutory Text
The provisions contained in this article do not apply to: (1) religious counseling; (2) peer support; and (3) self-help materials and educational resources that are available to the public and do not purport to offer therapy or psychotherapy services.
Other · Healthcare
S.C. Code § 40-1-750(A)-(B)
Plain Language
The appropriate licensing board may assess civil penalties up to $10,000 per violation, scaled by degree of harm and circumstances. Payment is due within 60 days. Licensing boards have investigative authority over actual, alleged, or suspected violations. This provision establishes the enforcement mechanism but creates no independent compliance obligation.
Statutory Text
(A) A civil penalty, in an amount not to exceed ten thousand dollars, shall be assessed by the appropriate licensing board for each violation of this article. The amount of the penalties assessed shall be based on the degree of harm and the circumstances of the violation. An individual, corporation, or entity found in violation of this article shall pay the civil penalty within sixty days of the imposed civil penalty. (B) A licensed professional's licensing board shall have authority to investigate any actual, alleged, or suspected violation of this article.