Maryland bills to watch on AI, online content and data protection in 2026

February 17, 2026 6:15 pm
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Maryland’s 2026 session has several notable AI, online content, and data‑protection items, plus the ramp‑up of MODPA enforcement in April 2026.

AI and online content bills

  • SB 0141 (deepfakes & elections): Targets AI‑generated deepfakes used to spread election misinformation, authorizes the state elections administrator to seek court‑ordered removal, imposes civil penalties up to about 5,000 dollars, and allows prison sentences up to five years; it has already passed the Senate unanimously and is pending in the House.

  • SB 0008 (AI deepfake impersonation/identity fraud): Creates civil liability and other legal consequences for AI deepfake impersonation used to defraud, mislead, or cause harm, framed as an extension of identity‑theft protections beyond just elections.

  • HB 0883 (AI in behavioral health): Requires AI systems that interact with users in a behavioral‑health context to clearly disclose that they are AI rather than licensed clinicians and to identify potential suicidal ideation and refer users to Maryland behavioral‑health services.

  • HB 1261 (AI toys & kids’ data): Establishes child‑safety and data‑privacy requirements for certain toys that feature AI, positioning AI‑enabled connected toys within a children’s‑privacy and product‑safety framework.

  • HB 1399 (AI in credit reporting): Sets requirements for consumer reporting agencies that use algorithmic systems to assemble or evaluate consumer credit information for furnishing consumer reports, effectively bringing AI‑driven credit‑scoring or underwriting tools under more explicit state‑level obligations.

Deepfake‑ and identity‑focused proposals

  • SB 0141 / HB 145–style deepfake election bills: SB 0141’s approach to criminal and civil penalties for election‑related deepfakes is drawing First Amendment scrutiny; HB 145 (a related proposal) has been criticized for subjective definitions of election “deepfakes” and potential overbreadth.

  • Prior‑session deepfake identity‑fraud bill (HB 1425/SB 905, 2025): A 2025 proposal to explicitly fold AI‑driven identity‑fraud and deepfakes into Maryland’s identity‑fraud statute stalled in committee but provides context for the 2026 impersonation and deepfake efforts.

Data privacy and online data use

  • MODPA in effect, enforcement date: The Maryland Online Data Privacy Act of 2024 (MODPA) took effect October 1, 2025, but is enforceable for processing activities on or after April 1, 2026, with enforcement by the Maryland Attorney General’s office and violations treated as unfair or deceptive practices under the state consumer‑protection law.

  • MODPA key themes: MODPA is viewed as one of the most restrictive state privacy laws, emphasizing data minimization, strict handling of sensitive and health data, and heightened expectations around automated decision‑making and algorithmic tools.

MODPA‑related 2026 tweaks

  • SB 0504 / HB 0711 (data sharing with immigration enforcement): Amend the Maryland Online Data Privacy Act to restrict third‑party data brokers from sharing Maryland residents’ personal data with federal immigration authorities without a warrant, expanding existing limits on warrantless access to state‑held data.

Pricing and surveillance‑related tech uses

  • “Surveillance pricing” proposal: A high‑profile 2026 bill aims to ban or restrict certain forms of “surveillance pricing,” where retailers use detailed consumer data to set individualized prices, framed as part of Democrats’ affordability agenda but opposed by retail groups concerned about operational and competitive impacts.

High‑level reference table

Category Bill(s) Core topic Key features / stakes
Election deepfakes SB 0141 (plus HB 145‑style effort) AI‑generated election misinformation Removal powers, civil penalties, possible prison time, First Amendment concerns.
AI identity/deepfake fraud SB 0008; context: 2025 HB 1425/SB 905 AI impersonation and identity fraud Civil action and restitution for deepfake‑enabled harm, builds on stalled 2025 proposal.
AI in mental‑health tools HB 0883 AI disclosure and safety in behavioral‑health interactions AI vs. clinician disclosure, suicide‑risk detection, mandated referrals to state services.
AI toys & kids’ data HB 1261 AI‑enabled toys and child data privacy Child‑safety and data‑privacy requirements for toys featuring AI.
AI credit algorithms HB 1399 Algorithmic systems in consumer reporting Requirements for CRAs using algorithmic systems to assemble/evaluate credit info.
Comprehensive privacy MODPA (in force 2025, enforceable 4/1/26) State‑wide consumer data privacy regime Strong data minimization, sensitive‑data rules, health data protections, AG enforcement.
Immigration‑related data use SB 0504 / HB 0711 Limits on data brokers sharing with ICE Warrant requirement for sharing Marylanders’ personal data with federal immigration.
Retail “surveillance pricing” Draft affordability bill Use of data‑driven dynamic pricing Would restrict data‑driven individualized pricing; opposed by retailers.

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