# Utah AI Policy Act (SB 149): S.B. 149 Artificial Intelligence Amendments (creating the Utah Artificial Intelligence Policy Act)

Source: https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act
Last updated: Oct 5, 2026

Utah S.B. 149, signed March 13, 2024 and effective May 1, 2024, created the Utah Artificial Intelligence Policy Act, one of the first U.S. state statutes on generative-AI consumer disclosure. It enacted Section 13-2-12, which made it no defense to a consumer-protection violation that generative AI made the statement or took the act, and required disclosure of AI use on request and, for licensed professions, proactively; it also created the Office of Artificial Intelligence Policy in the Department of Commerce and an AI learning laboratory that can grant temporary regulatory mitigation to AI pilots. The disclosure section was repealed and replaced by SB 226 effective May 7, 2025, and the Policy Act's remaining chapter (now Title 13, Chapter 72) is scheduled for repeal on July 1, 2027 after SB 332 extended the original May 1, 2025 sunset. For banks, SB 149 is mainly the origin of Utah's chatbot-disclosure approach and the source of the Office's regulatory-relief program.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) |
| Type | Statute |
| Status | In force |
| Published | Mar 13, 2024 |
| Effective | May 1, 2024 |
| Applies to | Persons subject to the Division of Consumer Protection's statutes (the original Section 13-2-12 disclosure rule, since repealed), occupations regulated by the Department of Commerce, and AI companies that apply to the Office of Artificial Intelligence Policy's learning laboratory. A bank is not itself a Department of Commerce licensed occupation; it was reached by the on-request disclosure rule for any act the Division administers, which SB 226 replaced from May 7, 2025, and it can use the learning laboratory's regulatory mitigation agreements for AI pilots |
| Official text | https://le.utah.gov/~2024/bills/static/SB0149.html |

## Key points

- Section 13-2-12(2) (enacted by Section 1): it is not a defense to the violation of any statute the Division of Consumer Protection administers that generative AI made the violative statement, undertook the violative act, or was used in furtherance of it. SB 226 repealed Section 13-2-12 and re-enacted this rule as Section 13-77-102 effective May 7, 2025.
- Section 13-2-12(1)(a) defined generative AI as an artificial system that is trained on data, interacts with a person using text, audio or visual communication, and generates non-scripted outputs similar to those created by a human, with limited or no human oversight.
- Section 13-2-12(3): a person who uses generative AI to interact with a person in connection with any act the Division administers had to clearly and conspicuously disclose, if asked or prompted, that the person is interacting with generative AI and not a human. Section 13-2-12(4)–(5): a person providing services of a regulated occupation had to prominently disclose generative AI interactions, verbally at the start of an oral exchange and through electronic messaging before a written exchange.
- Section 13-2-12(7)–(10): administrative fines of up to $2,500 per violation, court fines of up to $2,500, disgorgement, injunctions and fees, and a civil penalty of up to $5,000 per violation for violating an order.
- Chapter 70 (now Chapter 72): Section 13-70-201 created the Office of Artificial Intelligence Policy in the Department of Commerce and gave it rulemaking power over the learning laboratory; Section 13-70-301 established the Artificial Intelligence Learning Laboratory Program to study AI risks and benefits and produce legislative recommendations; the Office reports annually before November 30 to the Business and Labor Interim Committee.
- Section 13-70-302 (now Section 13-72-401): the Office may grant temporary regulatory mitigation — terms on restitution, cure periods before penalties, reduced civil fines and tailored terms — through agreements with participants and relevant agencies; participants remain subject to every legal requirement not expressly waived (Section 13-70-302(6)), and Section 13-70-303 sets eligibility criteria including technical expertise, financial resources, risk plans and a limited scale and scope.
- Section 13-70-305 (now Section 13-72-403 as amended): the original agreement ran no longer than 12 months, with a single 12-month extension; HB 320 (2026) now allows up to two extensions of a demonstration period. Section 63I-2-213 set the original repeal date of May 1, 2025, later moved to July 1, 2027 by SB 332.
- Section 76-2-107 provides that an actor may be guilty of an offense if the actor commits it with the aid of generative AI or intentionally prompts a generative AI to commit it, and Section 13-61-101 was amended so the Utah Consumer Privacy Act's definition of deidentified data includes synthetic data.

## What changed for banks

SB 149 put generative-AI disclosure and AI-is-no-excuse liability into Utah consumer-protection law early among the states, and paired it with a regulatory sandbox that lets AI firms negotiate temporary relief from state rules. For banks it did not create a credit-specific rule. Its practical effects were the on-request chatbot disclosure and the principle that automated statements are the supplier's own, both carried forward, in narrower form, by SB 226 and now Title 13, Chapter 77, and the Office's regulatory mitigation agreements, which were widened by HB 320 in 2026.

## Use cases it governs

- [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)

## What does Utah SB 149, the Artificial Intelligence Policy Act, require of banks?

Utah S.B. 149, the Artificial Intelligence Policy Act (signed March 13, 2024, effective May 1, 2024), imposed one operative duty on businesses and created one opt-in program. The duty, Section 13-2-12, made AI no defense to a consumer-protection violation and required a person using generative AI in connection with an act the Division of Consumer Protection administers to disclose, on request, that the individual is dealing with AI and not a human; licensed-occupation providers had to disclose proactively. SB 226 repealed that section effective May 7, 2025 and re-enacted a narrower version as Title 13, Chapter 77. The opt-in program, now Title 13, Chapter 72, created the Office of Artificial Intelligence Policy and a learning laboratory where participants can obtain regulatory mitigation agreements of up to 12 months, with extensions, but the chapter is scheduled to be repealed on July 1, 2027. A bank's current Utah obligations come from SB 226, not SB 149.

| Rule | Authority | What it requires | Status | Source |
| --- | --- | --- | --- | --- |
| Section 13-2-12(2) — AI is no defense (repealed May 7, 2025) | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | It was not a defense to a violation of a statute the Division administers that generative AI made the statement, undertook the act, or was used in furtherance of the violation. | May 1, 2024 – May 6, 2025; now Section 13-77-102 | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-2-12(3) — Disclosure on request (repealed May 7, 2025) | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | A person using generative AI to interact with an individual in connection with an act the Division administers had to clearly and conspicuously disclose, if asked or prompted, that the individual was interacting with generative AI and not a human. | May 1, 2024 – May 6, 2025; narrower rule now in Section 13-77-103(1) | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-2-12(4)–(5) — Regulated occupations (repealed May 7, 2025) | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | A provider of the services of a regulated occupation had to prominently disclose generative AI interactions, verbally at the start of an oral exchange and by electronic messaging before a written exchange. | May 1, 2024 – May 6, 2025; now limited to high-risk interactions in Section 13-77-103(2) | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-2-12(7)–(10) — Penalties (repealed May 7, 2025) | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | Administrative fines up to $2,500 per violation, court fines up to $2,500, disgorgement, injunction and fees, and a civil penalty up to $5,000 per violation of an order. | May 1, 2024 – May 6, 2025; now Section 13-77-105 | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-70-201 (now 13-72-201) — Office of Artificial Intelligence Policy | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | Creates the Office in the Department of Commerce, directs it to run the learning laboratory, consult stakeholders and make rules on participant disclosures and reporting, and report annually before November 30 to the Business and Labor Interim Committee. | From May 1, 2024 | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-70-302 (now 13-72-401) — Regulatory mitigation agreements | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | The Office may grant temporary regulatory mitigation, including cure periods and reduced civil fines, by agreement with relevant agencies; participants remain subject to all requirements not expressly waived. | From May 1, 2024; widened by HB 320 from May 6, 2026 | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 13-70-303 (now 13-72-402) — Eligibility | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | A participant must show technical expertise, financial resources, potential substantial consumer benefits that may outweigh the risks of mitigated enforcement, an effective risk-monitoring plan and appropriately limited scale, scope and duration. | From May 1, 2024 | [Utah AI Policy Act (SB 149)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act) |
| Section 63I-2-213 — Repeal date | [Utah Division of Consumer Protection](https://www.bankingnewsai.com/ai-regulation/utah) | Title 13, Chapter 72, Artificial Intelligence Policy Act, is repealed July 1, 2027, as amended by SB 332 (2025) from the original May 1, 2025. | Repeal scheduled for July 1, 2027 | [official text](https://le.utah.gov/Session/2025/bills/enrolled/SB0332.pdf) |

SB 149 was written as an experiment: enforce disclosure through the existing consumer-protection division, and give businesses a route to temporary relief while the state learns. The disclosure half proved broader than industry wanted, since it reached every act the Division administers, and in 2025 the Legislature replaced it with SB 226, which limits the duty to a clear and unambiguous request and adds a safe harbor and a high-risk-interaction rule. The Division's powers did not change: the same $2,500 fines carried over into Chapter 77.

The learning laboratory is the half that remains. The Office negotiates regulatory mitigation agreements with a participant and the agencies whose rules might be implicated, specifying scope limits, safeguards and reduced penalties; it does not waive requirements it does not name. For a bank, the relevant agencies could include the Division of Consumer Protection and the state's financial-institutions regulator; this review found no public record of an agreement with a financial institution. HB 320 (2026) added joint interpretation agreements that clarify how a law applies to an AI technology, mandatory audits of participants and up to two 12-month extensions.

Because the Policy Act is scheduled to be repealed on July 1, 2027, the Legislature must act in the 2027 General Session to keep the Office's program in place. The disclosure chapter, Chapter 77, is not listed for repeal in Section 63I-2-213, so the consumer-facing rule outlives the Policy Act unless amended.

### What this means in practice

- Treat SB 226 and Chapter 77, not SB 149, as the operative Utah rule for customer chatbots; SB 149's Section 13-2-12 has been repealed.
- Keep the principle of Section 13-2-12(2) in mind anyway: under Utah law a statement made by an AI agent is not a defense to a deception claim, so it is treated as the business's own.
- If a pilot AI product (for example automated underwriting or advisory) may conflict with Utah rules, consider asking the Office of Artificial Intelligence Policy about a regulatory mitigation or joint interpretation agreement before launch.
- Calendar July 1, 2027 for the Policy Act's scheduled repeal and watch the 2027 General Session before building a pilot that depends on an Office agreement.
- Do not read participation in the learning laboratory as state approval: Section 13-70-302(8) says participation is not an endorsement and the state is not responsible for participants' claims or losses.

## FAQ

### What is the Utah Artificial Intelligence Policy Act?

It is S.B. 149 (2024), signed March 13, 2024 and effective May 1, 2024. It enacted a generative-AI disclosure and liability rule in Section 13-2-12, created the Office of Artificial Intelligence Policy and an AI learning laboratory with regulatory mitigation agreements, and added a criminal-offense provision for crimes committed with generative AI (Section 76-2-107).

### Does the Utah AI Policy Act apply to banks?

Not directly as a licensed occupation. The original disclosure rule applied to any act the Division of Consumer Protection administers, so a bank's customer-facing generative AI could be covered when asked; that rule was repealed on May 7, 2025 and replaced by Title 13, Chapter 77 under SB 226. Banks can also apply to the Office of Artificial Intelligence Policy for regulatory mitigation for an AI pilot.

### Is the Utah AI Policy Act still in effect?

Its Chapter 72 (Office and learning laboratory) is in effect and is scheduled to be repealed on July 1, 2027 under Section 63I-2-213, after SB 332 (2025) extended the original May 1, 2025 sunset. Section 13-2-12 was repealed by SB 226 effective May 7, 2025.

### What are the penalties under the Utah AI disclosure law?

Under original Section 13-2-12 and now Section 13-77-105, the Division of Consumer Protection director may impose an administrative fine of up to $2,500 per violation, a court may fine up to $2,500 per violation and order disgorgement, and violating an order carries a civil penalty of up to $5,000 per violation.

## Related documents

- [Utah SB 226 (2025)](https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-226-2025) — S.B. 226 Artificial Intelligence Consumer Protection Amendments (Mar 27, 2025)
- [AB 1609](https://www.bankingnewsai.com/ai-regulation/documents/ca-ab-1609-2026) — Customer Service Chatbots (Right to Human Customer Service Act) (Sep 28, 2026)
- [Colorado AG proposed ADMT rules](https://www.bankingnewsai.com/ai-regulation/documents/co-ag-admt-proposed-rules-2026) — Proposed Automated Decision-Making Technology and Conversational AI Service Rules (Notice of Rulemaking Hearing) (Aug 11, 2026)
- [Regulation (EU) 2026/1744 (Digital Omnibus on AI)](https://www.bankingnewsai.com/ai-regulation/documents/eu-digital-omnibus-ai-regulation-2026-1744) — Regulation (EU) 2026/1744 amending Regulation (EU) 2024/1689 as regards the simplification of the implementation of harmonised rules on artificial intelligence (Digital Omnibus on AI) (Jul 24, 2026)
- [Commission guidelines on AI Act Article 50 transparency](https://www.bankingnewsai.com/ai-regulation/documents/eu-commission-guidelines-ai-act-article-50-transparency-2026) — Commission Guidelines on the implementation of the transparency obligations for certain AI systems under Article 50 of Regulation (EU) 2024/1689 (AI Act) (Jul 20, 2026)
- [RBI draft Guidance on Regulatory Principles for Model Risk Management](https://www.bankingnewsai.com/ai-regulation/documents/rbi-model-risk-management-guidance-2026) — Guidance on Regulatory Principles for Model Risk Management, 2026 (draft released for public comments) (Jun 24, 2026)
- [HB 26-1263](https://www.bankingnewsai.com/ai-regulation/documents/co-hb26-1263) — Conversational Artificial Intelligence Service Operator Requirements (Chatbot Safety Act) (May 29, 2026)
- [IOSCO FR/02/2026](https://www.bankingnewsai.com/ai-regulation/documents/iosco-ai-capital-markets-fr02-2026) — Supervisory Toolkit for AI Use in Capital Markets: Final Report (May 25, 2026)

Last reviewed Oct 5, 2026. Cite the official text (https://le.utah.gov/~2024/bills/static/SB0149.html) for the rule and this page for the summary and dates.

---

Canonical page: https://www.bankingnewsai.com/ai-regulation/documents/ut-sb-149-ai-policy-act
Part of [BankingNewsAI](https://www.bankingnewsai.com/) — a free daily brief on AI in banking, an AI regulation tracker (41 authorities, 237 documents) and AI-strategy profiles of the 120 largest US banks. Markdown versions of every reference page: append `.md` to the page URL; index at https://www.bankingnewsai.com/llms.txt.