AI Frontier Institute

Makes various changes relating to health. (BDR 34-674)

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Nevada Assembly Bill 406 (Chapter 283, approved by the Governor June 5, 2025) is law. It restricts AI in mental and behavioral health care. Section 2 bars public schools, including charter schools and university schools for profoundly gifted pupils, from using AI to perform the mental-health functions and duties of school counselors, school psychologists or school social workers. It requires the Department of Education to develop a policy on AI use by those staff and other educational personnel when they provide therapy, counseling or other mental or behavioral health services. The policy must include a method for examining the accuracy and efficacy of the AI used. Administrative uses such as scheduling, records, data analysis and file management are still allowed. Section 7 bars AI providers from representing that an AI system can provide professional mental or behavioral health care, or that it is a therapist, counselor, psychiatrist or doctor. It also bars them from making available in Nevada an AI system specifically programmed to deliver services that would be the practice of mental or behavioral health care if a person provided them. It prohibits unlicensed natural persons from representing themselves as qualified to provide such care, including by using titles like "therapist" or "counselor". Violations carry civil penalties of up to $15,000 per violation. The Division may investigate and sue, must deposit penalties in the State General Fund, and must produce public educational materials. Self-help materials that do not purport to offer professional care are exempt. Section 8 generally prohibits licensed mental and behavioral health care providers from using AI in providing care directly to patients. It allows AI for administrative tasks (scheduling, records, billing, data analysis, session notes), subject to compliance with HIPAA, the HITECH Act and NRS 439.581 to 439.597. Providers must independently review the accuracy of AI output used for billing or session-note tasks. Violations count as unprofessional conduct subject to discipline by the licensing board. Under Section 10, the act took effect on passage and approval for regulations and preparatory tasks, and on July 1, 2025 for all other purposes.

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