Attachment_13_-_GenAI_Notification_Clause.pdf
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- Solicitation number
- 0000034798
- Issued by
- Sacramento County, Sacramento City, West Sacramento City, California
About this file
This document is an official Generative Artificial Intelligence (GenAI) Notification Clause issued by the State of California, established through Executive Order N-12-23, which provides statewide policy guidance for the use of GenAI technologies. The document outlines mandatory requirements for non-IT services solicitations, requiring bidders and offerors to disclose any intentions to provide or utilize GenAI tools that could materially impact state systems, risk levels, or contract performance. Bidders must notify the state in writing about GenAI usage, with potential consequences including disqualification or contract rejection if risks are deemed unacceptable.
The policy mandates that departments must obtain confirmation from their Chief Information Officer (CIO) before proceeding with GenAI purchases or contracts, and CIOs are required to conduct risk assessments and potentially consult with the California Department of Technology (CDT). All GenAI transactions must be identified and reported in the FI$Cal State Contract and Procurement Registration System (SCPRS). Additional guidance and requirements can be found in the State of California GenAI Guidelines and GenAI Toolkit, with a focus on realizing the potential benefits of GenAI technologies while carefully managing associated risks.
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GENERATIVE ARTIFICIAL INTELLIGENCE (GenAI) (Rev 02/25)
A. Executive Order N-12-23 establishes statewide policy for the State’s use of Generative Artificial Intelligence (GenAI).
B. GenAI Definition:
“An artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data.” (See Govt. Code § 11549.64, SAM 4819.2 and any updates thereto.)
C. Required GenAI Solicitation Language: All written non-IT services solicitations must include the following GenAI notification clause:
“The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.
Bidder / Offeror must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or
(iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.
Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such non-disclosure.
Upon notification by a Bidder / Offeror of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.
Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.”
Attachment 13: GenAI Notification Clause
D. Before proceeding with a GenAI purchase, releasing a solicitation that includes the purchase of GenAI, or approving a contract that includes services generated by GenAI, departments must confirm with their department CIO that the purchase/contract may proceed. Confirmation must be kept in the contract file.
CIOs are required to conduct a risk assessment and potential consultation with the California Department of Technology (CDT) before proceeding with a purchase that includes GenAI. Consultation with CDT is dependent upon the risk assessment outcome or upon CDT’s request for low-risk transactions (refer to CDT policy for details).
E. Departments are no longer required to include GenAI Contract language in their contracts, these provisions are now in the State’s standard General Terms and Conditions (GTCs) available on the DGS/OLS website.
F. All transactions where GenAI is purchased must be identified and reported in FI$Cal State Contract and Procurement Registration System (SCPRS). See SCM volume 2 sections 2200.1 and 2300 for additional instructions.
G. Please see SCM volume 2 section 2300, the State of California GenAI Guidelines, and the GenAI Toolkit (https://www.genai.ca.gov/choose-your-journey/) for additional information and requirements, including when CDT consultation is required.
Solicitation #: ______________________
Company/Firm Name
Name of the Signee (Print)
Signature
Date
Title
The undersigned Contractor acknowledges that he/she/they has been provided a copy of the GenAI notification clause and understand that any records, documents, and information, or any draft or final work product that the undersigned reviews or produces in connection with providing the services to the CAC are subject to the terms of the Agreement.
https://www.genai.ca.gov/choose-your-journey/ https://www.genai.ca.gov/choose-your-journey/
| 7.12 GENERATIVE ARTIFICIAL INTELLIGENCE (GenAI) |
| (Rev 02/25) |
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