HB 1725-FN - AS INTRODUCED
2026 SESSION
26-2812
06/08
HOUSE BILL 1725-FN
AN ACT relative to the regulation of artificial intelligence technologies.
SPONSORS: Rep. Long, Hills. 26
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill establishes a new chapter to regulate the development, deployment, and use of artificial intelligence in New Hampshire.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2812
06/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
AN ACT relative to the regulation of artificial intelligence technologies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Responsible Artificial Intelligence Governance. Amend RSA by inserting after chapter 359-U the following new chapter:
CHAPTER 359-V
RESPONSIBLE ARTIFICIAL INTELLIGENCE GOVERNANCE
359-V:1 Definitions. In this chapter:
I. "Artificial intelligence system" means any machine-based system that, through machine learning, neural networks, or other adaptive algorithmic techniques, is capable of learning from data, improving performance, or making autonomous decisions or predictions. This term excludes classical statistical tools, rule-based expert systems, deterministic algorithms, and control systems without adaptive or autonomous features.
II. "Biometric identifier" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.
III. "Council" means the New Hampshire artificial intelligence council established pursuant to this chapter.
IV. "Consumer" means an individual residing in this state acting in an individual or household context.
359-V:2 Applicability.
I. This chapter shall apply to any person, business, or governmental entity conducting business in New Hampshire, offering products or services to state residents, or developing or deploying artificial intelligence systems in this state.
II. This chapter supersedes and preempts any ordinance, regulation, or rule adopted by a political subdivision regarding the use of artificial intelligence systems, unless expressly authorized by state law.
359-V:3 Administration and Council.
I. There is established the New Hampshire artificial intelligence council, administratively attached to the department of information technology.
II. The council shall include 7 members: 3 appointed by the governor, 2 by the senate president, and 2 by the speaker of the house. All members shall have demonstrated expertise in artificial intelligence, ethics, data privacy, public policy, or related fields.
III. The council shall advise the state on ethical and transparent development, deployment, and oversight of artificial intelligence systems, including annually reporting to the governor and legislature.
359-V:4 General Duties and Prohibitions.
I. State agencies and any person subject to this chapter shall:
(a) Provide clear and conspicuous disclosure to consumers when interacting with an artificial intelligence system, including in health care contexts except in emergencies, in which case notice shall be provided as soon as practicable.
(b) Not develop or deploy an artificial intelligence system with the intent to unlawfully discriminate against protected classes under state or federal law. Disparate impact alone is insufficient to demonstrate intent.
(c) Not develop or deploy an artificial intelligence system for the purpose of social scoring, manipulation aimed at causing self-harm or criminal acts, or infringing rights under the United States or New Hampshire constitutions.
II. Governmental entities shall not deploy artificial intelligence systems for the purpose of uniquely identifying individuals using biometric identifiers or collecting biometric data from publicly available sources without valid consent, unless otherwise permitted for security, law enforcement, or fraud prevention.
359-V:5 Regulatory Sandbox.
I. There is established an artificial intelligence regulatory sandbox program, administered by the department of information technology in consultation with the council.
II. The sandbox enables approved participants to test innovative artificial intelligence systems on a limited basis for up to 36 months, subject to oversight and quarterly reporting requirements. No waiver is permitted for prohibitions under RSA 359-V:4.
III. The department may recommend participants be removed from the program for undue risk to public safety or violations of applicable laws.
359-V:6 Enforcement.
I. The attorney general shall have exclusive authority to enforce this chapter.
II. Upon determination of a violation, the attorney general shall provide written notice, allowing 60 days for cure. Civil penalties for uncured violations may be imposed up to $200,000 per violation, and for continuing violations, up to $40,000 per day. Enhanced penalties apply for systematic or egregious conduct.
III. No private right of action is created by this chapter.
359-V:7 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application.
2 Effective Date. This act shall take effect January 1, 2027.
26-2812
12/12/25
HB 1725-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the regulation of artificial intelligence technologies.
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | Indeterminable Increase | ||||
Revenue Fund(s) | DOJ Agency Income | |||||
Expenditures* | $0 | Indeterminable Increase $235,000+ | Indeterminable Increase $237,000+ | Indeterminable Increase $243,000+ | ||
Funding Source(s) | DOJ Agency Income, General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill establishes the Responsible Artificial Intelligence (AI) Governance law to regulate the development, deployment, and use of artificial intelligence in New Hampshire.
The Department of Information Technology (DoIT) indicates that the bill's language largely overlaps with existing statutes (RSA 5-D) governing Executive Branch agency use of AI. DoIT states it can manage the AI Council, host biannual meetings, and publish results online, as already required under current law. Expanding applicability beyond Executive Branch agencies fall outside DoIT’s statutory requirements and expertise. Consequently, DoIT is unable to determine the financial impact of these broader responsibilities, rendering state expenditure estimates indeterminable. While the regulatory sandbox concept is already being implemented in collaboration with agencies, the bill’s language is too vague to assess additional costs. Additionally, DoIT states that its existing budget cannot absorb any new expenses, and full implementation would necessitate the creation of a statewide AI oversight and enforcement body, representing a substantial undertaking.
The Department of Justice (DOJ) indicates that this bill would significantly increase the Department’s responsibilities by requiring it to investigate and enforce violations related to AI use. The Department anticipates a rise in complaints and enforcement actions and estimates it would need at least one additional attorney and one investigative paralegal to meet these obligations. The fiscal impact is considered indeterminable due to uncertainty about the volume of cases, but estimated costs for staffing and related expenses range from $235,000 in FY 2026, $235,000 in FY 2027, and $243,000 in FY 2028. See the cost breakdown by position below. Additionally, revenue from penalties is uncertain as the bill gives the violator 60 days from the written notice from the Attorney General to fix the violation. The Department can charge up to $200,000 per violation.
ESTIMATED FISCAL IMPACT (ROUNDED) | |||
| FY 2026 | FY 2027 | FY 2028 |
Investigative Paralegal Salary, Benefits, Other Costs (computer, etc) (1 position) | $98,000 | $99,000 | $103,000 |
Full-Time Attorney Salary, Benefits, Other Costs (computer, etc)(1 position) | $137,000 | $138,000 | $140,000 |
Total Estimated Cost | $235,000 | $237,0000 | $243,000 |
AGENCIES CONTACTED:
Department of Justice and Department of Information Technology
| Date | Body | Type |
|---|---|---|
| Jan. 15, 2026 | House | Hearing |
| Jan. 15, 2026 | House | Hearing |
| Feb. 4, 2026 | House | Exec Session |
Jan. 29, 2026: Executive Session: 02/04/2026 01:00 pm GP 229
Jan. 15, 2026: Subcommittee Work Session: 01/22/2026 01:15 pm GP 229
Jan. 8, 2026: Public Hearing: 01/15/2026 11:00 am GP 229
Jan. 2, 2026: Public Hearing: 01/15/2026 11:00 am GP 229
Dec. 17, 2025: Introduced 01/07/2026 and referred to Commerce and Consumer Affairs HJ 1