AI Frontier Institute

Artificial Intelligence Transparency Act

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New Mexico House Bill 28 (2026) was introduced but not enacted; the record shows it was postponed indefinitely. If enacted, it would create the "Artificial Intelligence Transparency Act" (Section 1). Under Section 3, a deployer (a business, the state, or a political subdivision using an AI system to make or help make a "consequential decision" about education enrollment, employment, financial or lending services, housing, health care, insurance, or legal services) would have to give the consumer direct notice before using the system. The notice must identify the system and give the deployer's contact information. For an adverse decision, the deployer would have to explain the principal reasons, the facts or data that most influenced the decision, how much the system contributed, the level of human oversight, and the source and type of data processed. The consumer would also get a chance to correct incorrect personal data and to appeal, with a human reviewing the appeal. Notices must be in plain language, in the languages the deployer ordinarily uses, and accessible to people with disabilities. Section 4 would require "companion products" (generative AI apps built for sustained one-on-one conversational relationships) to tell users at the start of each interactive session that they are AI. The notice would have to be persistent in text interfaces and shown at least every 30 minutes for at least 30 seconds in non-text sessions. Companion products could not pose as human or materially misrepresent their identity, capabilities, professional certifications, or training data. Under Section 5, the state department of justice would enforce the act. Affected consumers could sue developers or deployers in district court for declaratory or injunctive relief and attorney fees. Violations would be unfair or deceptive trade practices enforceable under the Unfair Practices Act, and existing rights and remedies would be preserved. Section 6 sets an effective date of July 1, 2026.

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