Bus. & Prof. Code, § 22757.3

(a) To the extent it is technically feasible, a covered provider shall include a latent disclosure that meets all of the following criteria in any image, video, or audio content, or content that is any combination thereof, created or altered, except by minor modification, by the covered provider’s GenAI system:

(1) The disclosure conveys all of the following information, either directly or through a link to a permanent internet website:

(A) The name of the covered provider.

(B) The name and version information of the GenAI system that created or altered the content.

(C) The time and date of the content’s creation or alteration.

(D) A unique identifier.

(E) Whether the GenAI system created or altered the content.

(F) On and after January 1, 2029, whether the GenAI system is designed to primarily function as assistive technology.

(2) The disclosure is permanent or extraordinarily difficult to remove or tamper with.

(3) The disclosure is compatible with the covered provider’s disclosure verification tool.

(4) The disclosure is compliant or interoperable with widely recognized industry standards.

(b) (1) If a covered provider licenses its GenAI system to a third party, the covered provider shall, when it provides the license, notify the licensee of the licensee’s obligations under this chapter.

(2) If a covered provider knows that an identifiable third-party licensee modified a licensed GenAI system such that it no longer complies with this chapter, the covered provider shall do either of the following:

(A) Terminate the licensee’s authorization to use the GenAI system within 72 hours of discovering the licensee’s action.

(B) Notify the licensee of both of the following within 72 hours of discovering the licensee’s action:

(i) The licensee’s noncompliance.

(ii) The requirement to report noncompliance with paragraph (3) to the Attorney General pursuant to paragraph (4).

(3) A third-party licensee that receives a notice under paragraph (2) shall modify the licensed GenAI system to be in compliance with this chapter or cease using or making available the licensed GenAI system, including a copy or modified version of the GenAI system and shall report which of those actions it took to the covered provider within 96 hours of receipt of the notice.

(4) If a covered provider does not receive a report pursuant to paragraph (3) or if a covered provider receives a report from a third-party licensee indicating that the third-party licensee did not, pursuant to paragraph (3), modify or cease using or making available the licensed GenAI system, the covered provider shall report the third-party licensee’s noncompliance with paragraph (3) to the Attorney General.

(5) This subdivision does not require a covered provider to monitor, investigate, or otherwise inquire into a third-party licensee’s use or modification of a licensed GenAI system.

(c) The Attorney General shall establish a mechanism to receive reports from covered providers submitted to the Attorney General pursuant to this section.

(d) A covered provider shall not falsely represent that a GenAI system is designed to primarily function as assistive technology.