New CA Bill (SB 574) Regulating AI Misuse

It’s happening.

A new CA law is winding its way through legislature right now that would directly impact

the misuse of AI for all CA attorneys and arbitrators. SB 574.

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In an effort to empower Courts to combat the widely reported problem of hallucinated

citations, if passed, SB 574 would:

• amend CCP §128.7 to add §128.7(b)(2)(A)-(B);

• add an entirely new B&P Code Section (§6068.1) and

• amend CCP §1282 to add §1282.1.

Under the proposed new amendments:

• Attorneys signing a pleading automatically certify they have personally read and verified all cites in their pleading, including those generated by AI (proposed CCP §128.7(b)(2)(A)-(B)};

• If a Court finds the attorney violated the new proposed rules of CCP §128.7(b)(2)(A)-(B), the Court can impose monetary or non-monetary sanctions, after an OSC hearing (existing CCP§128.7(b));

• Attorneys may be under a new duty if they use AI to take “reasonable” steps to do ALL of the following: (a) verify the accuracy of AI materials, including materials prepared for them; (b) correct erroneous or hallucinated output and (c) remove any biased, offensive, or harmful content in any AI material used, including materials prepared for them. (proposed B&P §6068.1).

• Arbitrators shall not delegate any part of the decision-making process to AI (proposed CCP §1282.1(a)(1)) and

• If an arbitrator relies on information from AI, the arbitrator must disclosure that and, to the extent practical, allow the parties to comment on the same (proposed CCP §1282.1(b)(1)).

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