Policy Details

HB3936 – Restriction on AI from Covered Vendors

Date Passed

6/24/2025

Effective Date

1/1/2026

Summary

Prohibits installation or use of AI hardware/software/services on state IT assets if the AI is developed or owned by specified covered vendors; defines AI; updates ORS 276A.340/346/348 and aligns state cybersecurity posture.

Healthcare Implications

Affects Oregon state agencies’ procurement and deployment of AI, including health‑related systems at OHA and public hospitals interfacing with state networks. Vendors used by health programs must be vetted against ‘covered vendor’ restrictions, potentially impacting integrations, cloud services, and model hosting choices.

Impact Level

Medium

Keywords

Privacy & Data; Transparency & Governance

Stakeholders

Providers & Health Systems; Payers & Purchasers; Developers & Vendors; Regulators & Government