What California Senate Bill 942 - California AI Transparency Act (Chapter 25, commencing with Section 22757, of Division 8 of the Business and Professions Code) - Operative 1 January 2026 requires
California Senate Bill 942, the 'California AI Transparency Act,' adds Chapter 25 (commencing with Section 22757) to Division 8 of the Business and Professions Code and becomes operative on 1 January 2026. The Act regulates 'covered providers' - defined in Section 22757.1(b) as persons that create, code or otherwise produce a generative artificial intelligence (GenAI) system that has over 1,000,000 monthly visitors or users and is publicly accessible within the geographic boundaries of California. The Act imposes three core obligations on covered providers: (1) Make available, at no cost to the user, an AI detection tool that allows assessment of whether image, video or audio content was created or altered by the covered provider's GenAI system; outputs any system provenance data detected; allows upload of content or a URL link; and supports an application programming interface so a user can invoke the tool without visiting the covered provider's website (Section 22757.2). The detection tool must collect user feedback and incorporate relevant feedback into improvements; covered providers shall not collect or retain personal information from users of the detection tool except contact information for users who opt in to feedback follow-up, and shall not retain submitted content longer than necessary or retain personal provenance data from submitted content. (2) Offer the user the option to include a manifest disclosure in AI-generated image, video or audio content that identifies the content as AI-generated and is clear, conspicuous, appropriate to the medium and understandable to a reasonable person; and include a latent disclosure in such content conveying - to the extent technically feasible and reasonable, directly or via a link to a permanent internet website - the name of the covered provider, the name and version number of the GenAI system that created or altered the content, time and date of generation, a unique identifier traceable to the covered provider, and that is detectable by the covered provider's AI detection tool and consistent with widely accepted industry standards (Section 22757.3(a)-(b)). (3) When the covered provider licenses its GenAI system to a third party, require by contract that the licensee maintain the system's disclosure capability; revoke the license within 96 hours of discovering that the licensee modified the system such that it is no longer capable of including the latent disclosure; and the third-party licensee shall cease using the licensed system after revocation (Section 22757.3(c)). Civil penalty: USD 5,000 per violation, with each day of violation deemed a discrete violation; the Attorney General, a city attorney or a county counsel may bring the civil action; prevailing plaintiff is entitled to reasonable attorney's costs and fees (Section 22757.4). For a third-party licensee's failure to cease use after revocation, the AG/city/county counsel may seek injunctive relief and reasonable attorney's fees and costs. The Act does not apply to any product, service, internet website or application that provides exclusively non-user-generated video game, television, streaming, movie or interactive experiences. Personal information has the same meaning as Section 1798.140 of the Civil Code (CCPA/CPRA cross-reference).
Pillar: AI Governance & Law · Authority: California State Legislature (Senate Bill 942, 2023-2024 Regular Session) - chaptered into the Business and Professions Code Division 8, Chapter 25 (Section 22757 et seq.); enforcement by the Attorney General, a city attorney, or a county counsel under Section 22757.4 · Version: 1.0.0 · Last updated:
Primary source: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB942
SHA-256 integrity: b16328db2ecfbd3d6009fc53e7c8855a3f3c37a2bbe866301e6f4a84299c9664
Primary Citations — 12 traced to source
- California Senate Bill 942 (2023-2024 Reg. Sess.), California AI Transparency Act, adding Chapter 25 (commencing with Section 22757) to Division 8 of the Business and Professions Code; this chapter shall be known as the California AI Transparency Act (Section 22757)
- California Business and Professions Code Section 22757.1(b): 'Covered provider' means a person that creates, codes, or otherwise produces a generative artificial intelligence system that has over 1,000,000 monthly visitors or users and is publicly accessible within the geographic boundaries of the state
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