SB4 – An Act Relating to Protection of Information and Declaring an Emergency

KYLawState

Date Passed

3/24/2025

Effective Date

7/15/2025

Summary

Establishes a statewide, risk-based governance framework for AI used by Kentucky government; directs the Commonwealth Office of Technology to set and enforce standards; creates an AI Governance Committee; requires disclosure of public‑sector AI use and employee training; and adds synthetic‑media disclosure/cause-of-action provisions. Includes emergency provisions.

Healthcare Implications

State health agencies must adopt AI standards for eligibility, program integrity, surveillance, and other AI‑enabled systems, with inventories, privacy/security controls, human oversight, and disclosures where applicable. Procurements for AI tools will likely require compliance attestations.

Operational Implications

  • Human review required for consequential AI-driven decisions.
  • Public disclosure when AI is used in decision-making affecting citizens.
  • Anti-discrimination documentation; data security/privacy; employee education and training.
  • Centralized registry of AI systems maintained by COT.
  • State agencies must obtain COT approval before implementing AI systems (pre-deployment approval gate).
  • COT establishes AI policy standards aligned with NIST and ISO benchmarks; AI Governance Committee within COT.

Impact Level

Medium

Keywords

Transparency & Governance

Stakeholders

Patients & Public; Developers & Vendors