SB3601 104TH GENERAL ASSEMBLY

LRB104 19072 AAS 32517 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3601

Introduced 2/5/2026, by Sen. Steve Stadelman

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2MMMM new

Creates the Professional AI Oversight Act. Defines terms. Provides that a licensee shall prominently disclose when a person who is paying for a service provided by the licensee is interacting with artificial intelligence. Provides that the disclosure shall (i) be provided verbally at the start of an oral exchange or conversation and in writing before a written exchange and (ii) notify the person of the specific purpose of the artificial intelligence that will be used in the interaction. Sets forth rulemaking authority for the Department of Financial and Professional Regulation. Provides that any individual, corporation, or entity found in violation of the Act shall pay a civil penalty to the Department in an amount not to exceed $2,500 per violation, as determined by the Department, with penalties assessed based on the degree of harm and the circumstances of the violation. Provides that an individual, corporation, or entity that is found in violation of the Act shall pay the civil penalty within 60 days after the date of the issuance of an order by the Department imposing the civil penalty. Provides that the Department's order shall constitute a judgment and may be filed and executed in the same manner as any judgment from a court of record. Provides that the Department may investigate any actual, alleged, or suspected violation of the Act. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice within the meaning of the Act for any person to use, prompt, or otherwise cause artificial intelligence to interact with a person while engaging in trade and commerce without clearly and conspicuously disclosing to the person with whom the artificial intelligence interacts, if asked or prompted by that person, that the person is interacting with artificial intelligence and not a human. Effective January 1, 2027.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Professional AI Oversight Act.

Section 5. Definitions. As used in this Act:

"Artificial intelligence" has the meaning given to that term in Section 2-101 of the Illinois Human Rights Act.

"Department" means the Department of Financial and Professional Regulation.

"License" has the meaning given to that term in Section 2105-5 of the Civil Administrative Code of Illinois.

"Licensee" means any person licensed in a regulated occupation by the Department.

"Regulated occupation" means an occupation regulated by the Department that requires a person to obtain a license or State certification to practice the occupation. "Regulated occupation" does not include occupations held by licensed professionals, as defined in Section 10 of the Wellness and Oversight for Psychological Resources Act, or occupations exempted under Section 35 of the Wellness and Oversight for Psychological Resources Act.

"State certification" means a State-granted authorization given to a person to use the word "State-certified" as part of a designated title for a specified occupation:

(1) based on the person meeting personal qualifications established under State law; and

(2) where State law prohibits a noncertified person from using the word "State-certified" as part of a designated title for a specified occupation but does not otherwise prohibit a noncertified person from engaging in the specified occupation for compensation.

Section 10. Use of artificial intelligence disclosure.

(a) A licensee shall prominently disclose when a person who is paying for a service provided by the licensee is interacting with artificial intelligence.

(b) The disclosure required under this Section shall:

(1) be provided (i) verbally at the start of an oral exchange or conversation and (ii) in writing before a written exchange; and

(2) notify the person of the specific purpose of the artificial intelligence that will be used in the interaction.

(c) Nothing in this Section shall be construed to permit a licensee to provide services in a regulated occupation through artificial intelligence without meeting any other requirements of the regulated occupation.

Section 15. Rulemaking. The Department shall adopt rules to administer and enforce this Act.

Section 20. Enforcement and penalties.

(a) Any individual, corporation, or entity found in violation of this Act shall pay a civil penalty to the Department in an amount not to exceed $2,500 per violation, as determined by the Department, with penalties assessed based on the degree of harm and the circumstances of the violation. The civil penalty shall be assessed by the Department after a hearing is held in accordance with Section 2105-100 of the Civil Administrative Code of Illinois. An individual, corporation, or entity that is found in violation of this Act shall pay the civil penalty within 60 days after the date of the issuance of an order by the Department imposing the civil penalty. The Department's order shall constitute a judgment and may be filed and executed in the same manner as any judgment from a court of record.

(b) The Department may investigate any actual, alleged, or suspected violation of this Act.

Section 25. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:

(815 ILCS 505/2MMMM new)

Sec. 2MMMM. Required disclosure of the use of artificial intelligence to engage in trade and commerce.

(a) As used in this Section, "artificial intelligence" has the meaning given to that term in Section 2-101 of the Illinois Human Rights Act.

(b) It is an unlawful practice within the meaning of this Act for any person to use, prompt, or otherwise cause artificial intelligence to interact with a person while engaging in trade and commerce without clearly and conspicuously disclosing to the person with whom the artificial intelligence interacts, if asked or prompted by that person, that the person is interacting with artificial intelligence and not a human.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect on January 1, 2027.