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S 4463

Relates to paid family leave after a stillbirth

2025 Regular Session Introduced by Pat Fahy and 2 co-sponsors

New Jersey S 4463 prohibits advertising AI as a licensed mental health professional, making misrepresentation an unlawful CFA practice with penalties up to $20,000 per offense.

REFERRED TO LABOR
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Bill Summary · S 4463

Summary of New Jersey S 4463 (Introduced May 19, 2025)

Note: The bill’s title references paid family leave after a stillbirth, but the introduced text provided pertains to artificial intelligence (AI) regulation. The summary below focuses on the introduced AI provisions as written.

Overview

  • Bill: S 4463
  • Purpose (as introduced): Prohibits developers or deployers of AI systems in New Jersey from advertising or representing that their AI system is or can act as a licensed mental health professional. Creates consumer protection penalties under the New Jersey Consumer Fraud Act (CFA) for violations.
  • Relationship to law: Supplements the CFA (P.L.1960, c.39; C.56:8-1 et seq.).

Key Provisions

  • Prohibition on misrepresentation (Section 1a)
    • A person who develops or deploys an AI system in New Jersey may not advertise or represent to the public that the AI system is or is able to act as a licensed mental health professional.
  • Unlawful practice (Section 1b)
    • Violating the misrepresentation prohibition constitutes an unlawful practice under the CFA.
  • Definitions (Section 1c)
    • AI: Broad definition encompassing systems that operate with minimal human oversight, learn from data, solve tasks requiring perception/cognition/planning/learning/communication, or are designed to think/act like humans (including neural networks and cognitive architectures).
    • Licensed mental health professional: Individuals licensed or authorized by relevant New Jersey boards or entities to provide mental health care (e.g., psychology, counseling, social work, psychiatry, nursing, etc.).
  • Effective date (Section 2)
    • The act takes effect on the first day of the sixth month after enactment.
    • The Director of the Division of Consumer Affairs may take anticipatory action to implement the act.

Enforcement and Penalties

  • Violation consequences
    • Violation constitutes an unlawful practice under the CFA.
    • Monetary penalties: up to $10,000 for the first offense; up to $20,000 for any subsequent offense.
    • Additional CFA remedies: cease and desist orders by the Attorney General, possibility of punitive damages, treble damages, and recovery of costs for injured parties.

Implementation Timeline

  • Enactment triggers a six-month countdown to effectiveness.
  • Early implementation actions permitted by the Director of the Division of Consumer Affairs as needed.

Legislative Details

  • Status: Referred to LABOR (with related committee actions shown as well).
  • Introduced: May 19, 2025.
  • Primary Sponsor: Shelley Mayer; Co-sponsors: Lea Webb, Patricia Fahy.
  • Related/Companion Bills: A 5603 (companion), A 1467 (companion); S 9424, S 9427 (prior-session related).

Potential Impact

  • Affects developers and deployers of AI systems in New Jersey.
  • Creates clear consumer protection expectations around marketing AI as providing mental health services.
  • Increases risk of CFA liability and treble damages for non-compliant representations.
  • Could influence how AI-based mental health tools are marketed and described in NJ.

Important Note

Readers should verify the bill’s alignment with its title, as the introduced text focuses on AI-misrepresentation prohibitions rather than paid family leave or stillbirth-related protections.

Compiled from official sources — confirm details with the bill’s official record.

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