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AB 406

Relating to: University of Wisconsin System resident undergraduate tuition and fees. (FE)

2025-2026 Regular Session Introduced by Scott Allen and 11 co-sponsors

Bans AI from delivering school mental-health counseling; requires licensed professionals, with oversight, and restricts AI marketing as therapists (penalties).

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Bill Summary · AB 406

AB 406 — Summary (2025)

Status and timeline
- Introduced: February 4, 2025.
- Enacted: Chaptered in 2025 (Chapter 283). Approved by the Governor (2025).
- The bill underwent multiple committee and sponsor amendments during spring–summer 2025 to refine definitions, remove some proposed school-attendance provisions, and align AI definitions with other 2025 legislation.

Purpose
- To regulate the use and marketing of artificial intelligence (AI) in school-based and professional mental/behavioral health contexts, protect students from AI-driven counseling, ensure appropriate oversight of AI tools used by school and licensed providers, and prohibit unlicensed persons or AI systems from advertising themselves as mental-health providers.

Key provisions and changes
1. Prohibits AI from performing school mental-health duties
- Public schools (including charter and university schools for profoundly gifted pupils) may not use AI to perform the functions and duties of school counselors, school psychologists, or school social workers to deliver mental-health counseling (amendments to Chapter 391 NRS).

  1. Department of Education (NDE) policy and vetting

    • NDE must develop a policy for AI use by school mental-health personnel when providing therapy, counseling or related services to pupils. The policy must include methods to examine accuracy/efficacy and NDE may partner with the Division of Public and Behavioral Health (DPBH) for evaluation.

  2. Permitted administrative AI uses

    • School counselors, psychologists and social workers may use AI for administrative/support tasks (e.g., scheduling, managing records and billing, analyzing operational data, organizing/tracking files and session notes) in accordance with the NDE policy. Providers must independently review AI-generated reports or records that affect billing or individual-session documentation.

  3. Restrictions on AI providers and unlicensed persons (Chapter 433 NRS)

    • AI vendors (“artificial intelligence providers”) may not market, program or represent AI systems as capable of providing professional mental or behavioral health care or simulate a therapist/counselor role.
    • Natural persons may not represent themselves as qualified mental-health providers unless they hold valid state credentials.
    • DPBH may investigate violations, seek civil penalties, and produce public educational materials about accessing licensed care and safe AI practices.

  4. Definitions and alignment

    • “Artificial intelligence” redefined to align with other 2025 AI bills: a machine-based system that infers from inputs to generate outputs (predictions, content, recommendations, decisions) that can influence physical or virtual environments; recognizes varying autonomy/adaptiveness of systems.

Enforcement and penalties
- Civil penalties apply for violations. Earlier legislative text sets penalties up to $15,000 per violation for certain marketing/representation violations; DPBH is authorized to investigate and recover penalties and to develop public education resources. Penalties are deposited to the State General Fund.

Who is affected
- Public-school students and families (protection from AI-delivered counseling); school-employed mental-health professionals (limits on counseling-by-AI, but allowed administrative AI use subject to policy); licensed mental/behavioral health professionals and unlicensed persons (marketing and practice restrictions); AI vendors offering services in Nevada; state agencies (NDE, DPBH) charged with oversight and policy development.

Fiscal impact
- The bill may have fiscal impacts on local governments and the State; fiscal notes were prepared by NDE, DHHS, Nevada System of Higher Education, State Public Charter School Authority and local counties/school districts. Some proposed unfunded mandates were removed during amendment.

Notes on removed provisions
- Early versions contained broader school-attendance and student-assembly requirements and explicit excused-absence rules for mental/behavioral health; many of those provisions were deleted by subsequent amendments and are not in the final enacted text.

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

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