Revision: April 16, 2026, 9:21 a.m.
Rep. Layon, Rock. 13
Rep. Ammon, Hills. 42
April 14, 2026
2026-1522h
04/09
Amendment to SB 640-FN
Amend the title of the bill by replacing it with the following:
AN ACT relative to the use of artifical intelligence to provide services requiring a professional license, establishing an artificial intelligence and software engineering division within the department of information technology, and creating a government software modernization initiative.
Amend the bill by replacing all after section 2 with the following:
3 Commissioner; Deputy Commissioner; Directors; Compensation; Divisions. Amend RSA 21-R:3, II to read as follows:
II. The department shall consist of [4] 5 divisions, which shall be under the direction of the commissioner. The commissioner shall nominate [4] 5 division directors, who shall be appointed by the governor, with the consent of the council. Division directors shall serve for a term of 4 years; provided that a division director serving on the effective date of this paragraph may continue to serve in such capacity until appointed or replaced. The division directors shall be qualified to hold their respective positions by reason of education and relevant experience.
4 Divisions Established; Artificial Intelligence and Software Engineering Division. Amend RSA 21-R:5 to read as follows:
21-R:5 Divisions Established. The commissioner shall establish [4] 5 divisions, business relationship management, user experience, infrastructure and operations, [and] user services, and artificial intelligence and software engineering, which shall be in alignment with the department's statewide strategic plan. Each division shall be under the supervision of a division director appointed pursuant to RSA 21-R:3.
5 New Section; Artificial Intelligence and Software Engineering Division. Amend RSA 21-R by inserting after section 5 the following new section:
21-R:5-a Artificial Intelligence and Software Engineering Division; Duties.
The artificial intelligence and software engineering division shall be responsible for the development, deployment, and maintenance of software applications used by state agencies and programs. The division shall utilize artificial intelligence-assisted software development tools to increase efficiency, reduce costs, and accelerate application deployment. The division shall have the following duties:
I. Develop and maintain internal software applications used by executive branch agencies;
II. Develop public-facing digital platforms for use by residents, businesses, and visitors to the state;
III. Establish shared software platforms that may be used by multiple state agencies;
IV. Provide application engineering support to state departments, divisions, agencies, and offices;
V. Evaluate and replace existing software systems where internal development can provide cost savings or improved functionality;
VI. Develop and maintain artificial intelligence tools to assist state employees in performing administrative and regulatory functions; and
VII. Ensure that all software systems comply with state cybersecurity and data protection standards.
6 New Subdivision; Government Software Modernization and Artificial Intelligence. Amend RSA 21-R by inserting after section 16 the following new subdivision:
Government Software Modernization and Artificial Intelligence
21-R:17 Government Software Modernization Initiative Established.
I. There is hereby established within the department of information technology a government software modernization initiative, the purpose of which shall be to reduce reliance on external software vendors and increase the use of internally developed software systems. The initiative shall prioritize replacement of software systems that require substantial annual licensing fees, require recurring consulting contracts, and serve multiple state agencies with similar functionality.
II. The department shall establish a statewide software platform architecture allowing agencies to deploy shared applications for licensing, permitting, inspections, grant management, and other administrative functions.
21-R:18 Agency Software Procurement Review. Prior to procuring or renewing any software system with an annual cost exceeding $250,000, an executive branch agency shall consult with the department of information technology to determine whether the requested functionality can be developed internally using state resources. If the department determines that an internal solution is feasible, the agency shall work with the department to develop the application, unless the governor approves a waiver.
21-R:19 Government Software Innovation Fund. There is hereby established a government software innovation fund into which shall be deposited moneys consisting of savings realized from canceled or replaced software contracts, transfers approved by the legislature, and grants or other technology modernization funding. The fund shall be nonlapsing and continually appropriated to the department of information technology for the purpose of supporting software development, technology infrastructure, artificial intelligence computing capacity, cybersecurity systems, and staffing within the artificial intelligence and software engineering division.
21-R:20 Artificial Intelligence Governance and Security.
I. The department shall establish policies governing the use of artificial intelligence systems developed or deployed by the state. Such policies shall include safeguards to ensure protection of sensitive data, transparency in automated decision systems, human oversight of regulatory or enforcement decisions, and compliance with state and federal privacy laws.
II. Artificial intelligence systems developed under this chapter shall not be used to make final enforcement or adjudicatory decisions without human review.
21-R:21 State Artificial Intelligence Platform. The department may develop and operate a statewide artificial intelligence platform to assist state agencies with document analysis, regulatory review, data analysis, public information services, and administrative workflow automation. The platform may be trained on publicly available state statutes, administrative rules, reports, and other non-confidential government documents. The department may deploy such systems internally for use by state employees and externally for use by the public.
21-R:22 Annual Report. The department of information technology shall submit an annual report to the governor, the speaker of the house of representatives, and the president of the senate detailing the software systems replaced or developed , the estimated cost savings, the staffing levels within the division, technology infrastructure investments, and progress toward statewide software modernization.
7 New Subparagraph; Application of Receipts. Amend RSA 6:12, II(b) by inserting after subparagraph (410) the following new subparagraph:
(411) Moneys deposited into the government software innovation fund established in RSA 21-R:19.
I. Section 1 of this act shall take effect upon its passage.
II. Section 2 of this act shall take effect November 1, 2026.
III. The remainder of this act shall take effect July 1, 2026.
2026-1522h
AMENDED ANALYSIS
This bill:
I. Prohibits the use of artificial intelligence or other means to provide services requiring a professional license unless those services are provided by someone with such a license.
II. Allows the office of professional licensure and certification to collect fees for the costs of enforcement of the prohibition on unlicensed practice.
III. Establishes specific requirements for the use of artificial intelligence for psychologists, mental health practitioners, and alcohol and other drug use professionals.
IV. Establishes an artificial intelligence and software division within the department of information technology to develop and maintain software applications for state agencies using artificial intelligence-assisted development tools.
V. Establishes a process and structure to support software modernization by requiring agency coordination with the department on major technology purchases, establishes a software innovation fund, sets artificial intelligence governance standards, and requires regular reporting on modernization process.