Civil Actions - Product Liability - Artificial Intelligence Systems

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0712*

HOUSE BILL 712
D3 6lr1291

By: Delegate Grammer
Introduced and read first time: February 2, 2026
Assigned to: Judiciary

A BILL ENTITLED

AN ACT concerning 1

Civil Actions – Product Liability – Artificial Intelligence Systems 2

FOR the purpose of establishing a cause of action against a developer of a certain artificial 3
intelligence system for defective design, failure to provide adequate instructi on or 4
warning, and breach of express warranty ; establishing that a deployer of a certain 5
artificial intelligence system may be sued in lieu of a developer under certain 6
circumstances; establishing a certain rebuttable presumption that an artificial 7
intelligence system is not dangerous or defective if a developer engaged in certain 8
testing and evaluation procedures, mitigated and disclosed foreseeable risks , and, 9
under certain circumstances, considered and mitigated risks to minors; establishing 10
a certain rebuttable presumption in an action against a deployer that an artificial 11
intelligence system is not dangerous or defective if the deployer implemented and 12
adhered to a certain risk management policy; authorizing the Attorney General to 13
bring an action against a developer or deployer of an artificial intelligence system for 14
harm caused by a dangerous or defective product ; establishing that contributory 15
negligence is not a defense to an action under this Act and that recovery by a plaintiff 16
shall be reduced by the percentage of fault attributable to the plaintiff; establishing 17
that a developer and a deployer may be held jointly and severally liable in an action 18
under this Act; and generally relating to artificial intelligence system pro duct 19
liability. 20

BY adding to 21
Article – Courts and Judicial Proceedings 22
Section 3–2701 through 3–2706 to be under the new subtitle “Subtitle 2 7. Artificial 23
Intelligence Systems Product Liability” 24
Annotated Code of Maryland 25
(2020 Replacement Volume and 2025 Supplement) 26

Preamble 27

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WHEREAS, Artificial intelligence systems are products that shift decision –making 1
power and responsibility away from persons to software –based systems, often without 2
direct human oversight; and 3

WHEREAS, While this technology provides great benefits, the deployment of these 4
products has resulted in measurable harm to individuals and businesses; and 5

WHEREAS, Developers of high–impact artificial intelligence systems have an 6
obligation to make such products safe when used in reasonably foreseeable ways; and 7

WHEREAS, Deployers of these products also have an obligation to ensure that these 8
products are used in a way that does not materially affect an individual’s rights; and 9

WHEREAS, Maryland’s laws on artificial i ntelligence systems need to be expanded 10
to better protect Marylanders from harm; now, therefore, 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Courts and Judicial Proceedings 14

SUBTITLE 27. ARTIFICIAL INTELLIGENCE SYSTEMS PRODUCT LIABILITY. 15

3–2701. 16

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18

(B) “ARTIFICIAL INTELLIGEN CE SYSTEM ” MEANS AN ENGINEERED OR 19
MACHINE–BASED SYSTEM WITH VA RYING LEVELS OF AUTO NOMY THAT CAN , FOR 20
EXPLICIT OR IMPLICIT OBJECTIVES, INFER FROM THE INPUTS IT RECEIVES HOW TO 21
GENERATE OUTPUTS THAT CAN INFLUENCE PHYSICAL OR VIRTUAL ENVIRONMENTS. 22

(C) “CONSEQUENTIAL DECISION” MEANS A DECISION THAT HAS A LEGAL OR 23
SIMILARLY SIGNIFICANT EFFECT ON AN INDIV IDUAL’S ACCESS TO THE CRIM INAL 24
JUSTICE SYSTEM, HOUSING, EMPLOYMENT, CREDIT, EDUCATION, HEALTH CARE, OR 25
INSURANCE. 26

(D) (1) “DEPLOYER” MEANS A PERSON, INCLUDING A DEVELOPER, THAT 27
USES OR OPERATES AN ARTIFICIAL INTELLIGE NCE SYSTEM FOR USE B Y THE 28
DEPLOYER OR THIRD PARTIES. 29

(2) “DEPLOYER” DOES NOT INCLUDE AN INDIVIDUAL OR SMALL 30
BUSINESS THAT HAS FEWER THAN: 31

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(I) 20 EMPLOYEES; OR 1

(II) 10,000 USERS OF ITS PRODUCT. 2

(E) (1) “DEVELOPER” MEANS A PERSON THAT DESIGNS, CODES, 3
PRODUCES, OWNS, OR SUBSTANTIALLY MOD IFIES AN ARTIFICIAL INTELLIGENCE 4
SYSTEM FOR USE BY A DEVELOPER OR FOR USE BY THIRD PARTIES. 5

(2) “DEVELOPER” DOES NOT INCLUDE A PERSON THAT USES AN OPEN 6
SOURCE ARTIFICIAL IN TELLIGENCE SYSTEM AN D DOES NOT SUBSTANTI ALLY 7
MODIFY THE ARTIFICIAL INTELLIGENCE SYSTEM. 8

(F) “DESIGN” MEANS THE INTENDED OR KNOWN PHYSICAL AND MATERIAL 9
CHARACTERISTICS OF A PRODUCT, INCLUDING: 10

(1) ANY INTENDED OR KNOWN FORMULATION OR CONTENT OF THE 11
PRODUCT; AND 12

(2) THE USUAL RESULT OF T HE INTENDED METHOD OF 13
DEVELOPMENT OR OTHER PROCESS USED TO PRODUCE THE PRODUCT, INCLUDING 14
UNEXPECTED SKILLS OR BEHAVIORS THAT APPEAR IN A PRODUCT. 15

(G) “EXPRESS WARRANTY” MEANS ANY MATE RIAL, POSITIVE STATEMENT, 16
AFFIRMATION OF FACT , PROMISE, OR DESCRIPTION RELAT ING TO A PRODUCT , 17
INCLUDING A SAMPLE OR MODEL OF A PRODUCT. 18

(H) “GENERATIVE ARTIFICIAL INTELLIGENCE SYSTEM ” MEANS AN 19
ARTIFICIAL INTELLIGE NCE SYSTEM THAT CAN GENERATE DERIVED SYNTHETIC 20
CONTENT, SUCH AS TEXT , IMAGES, VIDEO, AND AUDIO , THAT EMULATES THE 21
STRUCTURE AND CHARAC TERISTICS OF THE ART IFICIAL INTELLIGENCE SYSTEM’S 22
TRAINING DATA. 23

(I) “HARM” MEANS: 24

(1) DAMAGE TO PROPERTY OT HER THAN THE ARTIFIC IAL 25
INTELLIGENCE SYSTEM ITSELF; 26

(2) PERSONAL PHYSICAL , FINANCIAL, OR REPUTATIONAL INJU RY, 27
ILLNESS, OR DEATH; 28

(3) MENTAL OR PHYSIOLOGIC AL ANGUISH , EMOTIONAL HARM , OR 29
DISTORTION OF A PERS ON’S BEHAVIOR THAT WOUL D BE HIGHLY OFFENSIV E TO A 30
REASONABLE PERSON; OR 31
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(4) ANY LOSS OF CONSORTIUM OR SERVICES, OR OTHER LOSS 1
DERIVING FROM ANY TYPE OF HARM DESCRIBED UNDER THIS SUBSECTION. 2

(J) “HIGH–IMPACT ARTIFICIAL IN TELLIGENCE SYSTEM ” MEANS ANY 3
ARTIFICIAL INTELLIGE NCE SYSTEM , REGARDLESS OF THE NU MBER OF 4
PARAMETERS AND SUPERVISION STRUCTURE, THAT: 5

(1) IS U SED, OR REASONABLY FORESEEAB LY MAY BE USED , AS A 6
CONTROLLING FACTOR IN MAKING CONSEQUENTIAL DECISIONS; 7

(2) IS U SED, OR REASONABLY FORESE EABLY MAY BE USED , TO 8
CATEGORIZE GROUPS OF PERSONS BY PROTECTED CHARACTERISTICS, SUCH AS 9
RACE, ETHNIC ORIGIN, OR RELIGIOUS BELIEF; 10

(3) IS U SED, OR REASONABLY FORESEEABLY MAY BE USED, IN THE 11
DIRECT MANAGEMENT OR OPERATION OF CRITICAL INFRASTRUCTURE; 12

(4) IS U SED, OR REASONABLY FORESEEABLY MAY BE USED, IN A 13
VEHICLE, IN A MEDICAL DEVICE , OR IN THE SAFETY SYSTEM OF A VEHICLE OR 14
MEDICAL DEVICE; 15

(5) IS U SED, OR REASONABLY FORESEEABLY MAY BE USED, TO 16
ENGAGE IN A SYNTHETIC RELATIONSHIP; OR 17

(6) EXHIBITS, OR COULD BE EASILY M ODIFIED TO EXHIBIT , HIGH 18
LEVELS OF PERFORMANC E AT TASKS THAT POSE A SERIOUS RISK TO ECON OMIC 19
SECURITY OR PUBLIC HEALTH OR SAFETY. 20

(K) (1) “MATERIAL FACT ” MEANS ANY SPECIFIC C HARACTERISTIC OR 21
QUALITY OF THE PRODUCT. 22

(2) “MATERIAL FACT ” DOES NOT INCLUDE A G ENERAL OPINION 23
ABOUT THE PRODUCT OR ITS QUALITY. 24

(L) “METHOD OF DEVELOPMENT ” MEANS THE SELECTION OF TRAINING 25
DATA FOR THE PRODUCT , INCLUDING THE TRAINI NG, TESTING, AUDITING, AND 26
FINE–TUNING OF THE PRODUCT. 27

(M) “PERSON” MEANS ANY INDIVIDUAL , CORPORATION, COMPANY, 28
ASSOCIATION, FIRM, PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, OR ANY 29
OTHER ENTITY , INCLUDING ANY GOVERN MENTAL ENTITY OR UNINCORPOR ATED 30
ASSOCIATION OF PERSONS. 31
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(N) “PRODUCT” MEANS A HIGH –IMPACT ARTIFICIAL IN TELLIGENCE 1
SYSTEM OR A GENERATIVE ARTIFICIAL INTELLIGENCE SYSTEM. 2

(O) “SYNTHETIC RELATIONSHIP” MEANS A SERIES OF IN TERACTIONS 3
BETWEEN AN INDIVIDUAL AND AN ARTIFICIAL INTELLIGENCE SYSTEM THAT MIMICS 4
HUMAN INTERACTION AND EMOTIONAL RESPONSES. 5

3–2702. 6

THIS SUBTITLE DOES NO T APPLY TO ARTIFICIA L INTELLIGENCE SYSTE MS 7
USED ONLY FOR PEER–REVIEWED SCIENTIFIC RESEARCH. 8

3–2703. 9

(A) A PERSON MAY BRING AN ACTION IN ACCORDANCE WITH THIS SECTION 10
AGAINST A DEVELOPER OR DEPLOYER FOR HARM CAUSED BY A PRODUCT THAT IS 11
DANGEROUS OR DEFECTIVE. 12

(B) IN AN ACTION AGAINST A DEVELOPER ALLEGING HARM CAUSED BY A 13
DANGEROUS OR DEFECTIVE PRODUCT DUE TO THE DEFECTIVE DESIGN OF THE 14
PRODUCT, THE PLAINTIFF SHALL PROVE BY A PREPONDERANCE OF THE EVIDENCE 15
THAT THE HARM WAS PROXIMATELY CAUSED BY THE FAILURE OF THE DEVELOPER 16
TO EXERCISE REASONABLE CARE AND THAT, AT THE TIME THE PRODUCT LEFT THE 17
DEVELOPER’S CONTROL: 18

(1) THE DEVELOPER KN EW OR REASONABL Y SHOULD HAVE KNOWN 19
OF THE DESIGN DEFECT THAT CAUSED THE HARM; 20

(2) THE DEVELOPER ACCOUNT ED FOR INTENDED USES AND 21
REASONABLY FORESEEABLE UNINTENDED USES OF THE PRODUCT; AND 22

(3) A TECHNOLOGICALLY FEAS IBLE AND PRACTICAL A LTERNATIVE 23
DESIGN EXISTED THAT WOULD HAVE MITIGATED OR AVOIDED THE FORES EEABLE 24
RISK OF HARM WITHOUT SIGNIFICANTLY IMPAIRING THE INTEND ED USE OF THE 25
PRODUCT. 26

(C) (1) IN THIS SUBSECTION , “ADEQUATE INSTRUCTION OR WARNING ” 27
MEANS AN INSTRUCTION OR A WARNING REGARDING A DANGER THAT WOULD 28
SUFFICIENTLY INFORM A REASONABLY PRUDENT P ERSON ON THE SAFE USE AND 29
DANGERS OF A PRODUCT. 30

(2) IN AN ACTION AGAINST A DEVELOPER ALLEGING HARM CAUSED 31
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BY A DANGEROUS OR DEFEC TIVE PRODUCT DUE TO A FAILURE TO PROVIDE 1
ADEQUATE INSTRUCTION OR WARNING , A PLAINTIFF SHALL PROV E BY A 2
PREPONDERANCE OF THE EVIDENCE THAT THE HARM WAS PROXIMA TELY CAUSED 3
BY THE FAILURE TO PROVIDE ADEQUATE INSTRUCTION OR WARNING AND THAT, AT 4
THE TIME THE PRODUCT LEFT THE DEVELOPER’S CONTROL, THE DEVELOPER KNEW 5
OR REASONABLY SHOULD HAVE KNOWN OF THE DANGER POSED BY THE PRODUCT. 6

(3) IT IS A DEFENSE TO AN ACTION AGAINST A DEVELOPER FOR HARM 7
CAUSED BY A FAILURE TO INSTRUCT OR WARN THAT: 8

(I) THE USER OR CONSUMER OF THE PRODUCT WAS AT LEAST 9
17 YEARS OLD; AND 10

(II) THE PRODUCT DANGER WAS KNOWN OR OPEN AND OBVIOUS 11
TO THE USER OR CONSUMER OF THE PRODUCT, OR SHOULD HAVE BEEN KNOWN OR 12
OPEN AND OBVIOUS TO THE USER OR CONSUMER OF THE PRODUCT. 13

(D) IN AN ACTION AGAINST A DEVELOPER ALLEGING HARM CAUSED BY A 14
DANGEROUS OR DEFECTIVE PRODUCT DUE TO TH E FAILURE OF THE PRO DUCT TO 15
CONFORM TO AN EXPRES S WARRANTY , THE PLAINTIFF SHALL PROVE BY A 16
PREPONDERANCE OF THE EVIDENCE THAT THE HARM WAS PROXIMA TELY CAUSED 17
BY THE FAILURE OF THE DEVELOPER TO EXERCISE REASONABLE CARE AND THAT: 18

(1) THE PLAINTIFF REASONABLY RELIED ON AN EXPRESS WARRANTY 19
MADE BY A DEVELOPER ABOUT A MATERIAL FACT CONCERNING THE SAFETY OF THE 20
PRODUCT; AND 21

(2) (I) 1. THE PRODUCT FAILED TO CONFORM TO THE EXPRESS 22
WARRANTY; AND 23

2. THE FAILURE OF THE PRODUCT TO CONFORM TO THE 24
EXPRESS WARRANTY RESULTED IN THE HARM; OR 25

(II) 1. THE EXPRESS WARRANTY WAS UNTRUE; AND 26

2. HAD THE EXPRESS WARRANTY BEEN TRUE, THE HARM 27
WOULD NOT HAVE OCCURRED. 28

(E) (1) A DEPLOYER MAY BE HELD LIABLE IN PLACE OF A DEVELOPER IN 29
AN ACTION UNDER THIS SECTION IF THE DEPLOYER: 30

(I) MADE A MATERIAL AND S UBSTANTIAL CHANGE TO THE 31
PRODUCT; OR 32
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(II) INTENTIONALLY MISUSED THE PRODUCT CONTRARY TO AN 1
EXPRESS WARRANTY AND THAT MISUSE WAS THE PROXIMATE CAUSE OF H ARM 2
SUFFERED BY A PLAINTIFF. 3

(2) (I) USE OF A PRODUCT THAT IS INTENDED BY THE DEVELOPER 4
OF THE PRODUCT DOES NOT CONSTITUTE A MISUSE OR MATERIAL OR SUBSTANTIAL 5
CHANGE OF THE PRODUCT UNDER THIS SECTION. 6

(II) IF A DEVELOPER DOES NOT SPECIFY AN INTENDED USE FOR 7
THE PRODUCT, INTENDED USE MAY BE INFERRED BY THE T ARGETED MARKET AND 8
MANNER OF DISTRIBUTION OF THE PRODUCT. 9

(3) A DEPLOYER LICENSING A PRODUCT MAY NOT BE HELD LIABLE TO 10
A PLAINTIFF FOR A VIOLATION UNDER THIS SECTION SOLELY BY REASON OF 11
OWNERSHIP OR USE OF A PRODUCT. 12

(F) IN AN ACTION BROUGHT UNDER THIS SECTION, THERE IS A REBUTTABLE 13
PRESUMPTION THAT A PRODUCT IS NOT DANGEROUS OR DEFECTIVE IF: 14

(1) IN AN ACTION AGAINST A DEVELOPER, THE DEVELOPER: 15

(I) CONDUCTED A DOCUMENTE D TESTING , EVALUATION, 16
VERIFICATION, VALIDATION, AND AUDITING OF THE PRODUCT CONSISTENT WITH 17
INDUSTRY BEST PRACTICES; 18

(II) MITIGATED FORESEEABLE RISKS TO THE EXTENT 19
POSSIBLE; 20

(III) DISCLOSED FORESEEABLE RISKS AND MITIGATION TACTICS 21
DIRECTLY TO DEPLOYERS AND CONSUMERS; AND 22

(IV) IF THE PRODUCT IS DESIGNED FOR OR REASONABLY LIKELY 23
TO BE USED BY MINORS , CONSIDERED AND MITIGATED FORESE EABLE RISKS TO 24
MINORS USING THE PRODUCT, INCLUDING: 25

1. THE IMPACT OF THE PRODUCT ON COGNITIVE AND 26
EMOTIONAL DEVELOPMENT; 27

2. THE IMPLEMENTATION OF AGE AND CONTENT 28
RESTRICTIONS; AND 29

3. PROVIDING CLEAR , ACCESSIBLE DISCLOSURES TO 30
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DEPLOYERS, CONSUMERS, AND GUARDIANS ABOUT POTENTIAL RISKS; OR 1

(2) IN AN ACTION AGAINST A DEPLOYER , THE DEPLOYER 2
IMPLEMENTED AND ADHERED TO A RISK MANAGEMENT POLICY THAT: 3

(I) SPECIFIES THE POLICY BY WHICH THE DEPLOYE R WILL 4
IDENTIFY, DOCUMENT, AND MITIGATE ANY RIS K, ESPECIALLY TO MINOR USERS, 5
THAT IS REASONABLY FORESEEABLE; 6

(II) IS CONSISTENT WITH INDUSTRY BEST PRACTICES; 7

(III) IS REASONABLE IN LIGHT OF: 8

1. THE SIZE AND COMPLEXITY OF THE DEPLOYER; 9

2. THE NATURE AND SCOPE OF THE PRODUCT, 10
INCLUDING THE INTEND ED USES AND UNINTENDED USES, AS WELL AS ANY 11
MODIFICATION MADE TO THE SYSTEM BY THE DEPLOYER; AND 12

3. THE DATA THAT THE SYS TEM, ONCE DEPLOYED , 13
PROCESSES AS INPUTS; AND 14

(IV) IS ELECTRONICALLY AVAILABLE TO ITS EMPLOYEES AND TO 15
THE ATTORNEY GENERAL ON REQUEST. 16

3–2704. 17

(A) THE ATTORNEY GENERAL MAY BRING AN ACTION AGAINST A 18
DEVELOPER OR A DEPLO YER FOR HARM CAUSED BY A DAN GEROUS OR DEFECTIVE 19
PRODUCT DESCRIBED IN § 3–2703 OF THIS SUBTITLE. 20

(B) (1) IN AN ACTION BROUGHT UNDER THIS SECTION , THE ATTORNEY 21
GENERAL MAY OBTAIN: 22

(I) INJUNCTIVE RELIEF; 23

(II) A CIVIL PENALTY; 24

(III) DAMAGES, RESTITUTION, OR OTHER COMPENSATIO N ON 25
BEHALF OF AN INDIVIDUAL WHO HAS BEEN HARMED BY AN ARTIFICIAL 26
INTELLIGENCE SYSTEM; AND 27

(IV) ANY OTHER RELIEF THAT THE ATTORNEY GENERAL 28
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CONSIDERS APPROPRIATE. 1

(2) IF THE USE OF THE SOF TWARE CAUSES PERSONA L INJURY OR 2
DEATH, A CIVIL PENALTY IMPOSED UNDER THIS SUBSECTION MAY NOT EXCEED THE 3
APPLICABLE LIMITATION ON NONECONOMIC DAM AGES UNDER § 3–2A–09 OF THIS 4
TITLE. 5

(C) IN AN ACTION BROUGHT BY THE ATTORNEY GENERAL UNDER THIS 6
SECTION, THE ATTORNEY GENERAL IS ENTITLED T O RECOVER THE COSTS OF THE 7
ACTION FOR THE USE OF THE STATE. 8

(D) BEFORE BRINGING AN AC TION UNDER THIS SECTION SEEKING 9
INJUNCTIVE RELIEF, THE ATTORNEY GENERAL SHALL PROVIDE WRITTEN NOTICE 10
TO A DEVELOPER OR DEPLOYE R AT LEAST 30 DAYS BEFORE COMMENCEMENT OF 11
THE ACTION THAT INCLUDES A DETAILED DESCRIPTION OF THE BASIS OF THE CLAIM 12
AND, WHEN POSSIBLE, THE OPPORTUNITY TO CURE ANY CONDITION GIVING RISE TO 13
THE CLAIM. 14

3–2705. 15

(A) (1) CONTRIBUTORY NEGLIGENCE IS NOT A DEFENSE TO AN ACTION 16
BROUGHT UNDER THIS S UBTITLE AND RECOVERY BY A PLAINTIFF MAY NOT BE 17
BARRED REGARDLESS OF THE PLAINTIFF’S DEGREE OF FAULT. 18

(2) RECOVERY BY A PLAINTI FF UNDER THIS SUBTIT LE S HALL BE 19
REDUCED IN PROPORTION TO THE PERCENTAGE OF FAULT ATTRIBUTABLE TO THE 20
PLAINTIFF. 21

(B) A DEVELOPER AND A DEPLOYER MAY BE HELD JOINTLY AND SEVERALLY 22
LIABLE FOR THE PORTI ON OF HARM TO THE PL AINTIFF ATTRIBUTED TO THE 23
DEVELOPER AND DEPLOYER. 24

(C) IT IS NOT A DEFENSE TO AN ACTION BROUGHT UNDER THIS S UBTITLE 25
THAT AN ARTIFICIAL INTELLIGENCE SYSTEM AUTONOMOUSLY CAUSED THE HARM 26
TO THE PLAINTIFF. 27

3–2706. 28

THIS SUBTITLE: 29

(1) SUPPLEMENTS ANY COMMON LAW TORT LIABILITY CAUSE OF 30
ACTION AND ANY STATE PRODUCT LIABILITY LAWS; AND 31

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(2) MAY NOT BE INTERPRETED TO PROHIBIT ANY PRODUCT 1
LIABILITY CAUSE OF ACTION INVOLVING A PRODUCT BROUGHT UNDER A DIFFERENT 2
CLAIM UNDER PRODUCT LIABILITY COMMON LAW OR STATUTE. 3

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2026. 5