AI Legislative Update: July 25, 2025

July 25, 2025 — During the state legislative season TCAI offers weekly updates every Friday on a variety of AI-related bills making progress in around the nation.

This week: It was a quiet week in state capitols, as California lawmakers went on their planned summer hiatus. Meanwhile, in D.C., Sen. Josh Hawley and Sen. Richard Blumenthal introduced a bipartisan bill focusing on copyright protection and AI training data.

in Congress

The AI Accountability and Personal Data Protection Act 

Earlier this week Sen. Josh Hawley (R-MO) and Richard Blumenthal (D-CT) introduced the AI Accountability and Personal Data Protection Act.

The bipartisan proposal, which comes on the heels of last week’s Hawley-led hearing on AI and copyright, would prohibit AI developers from stealing copyrighted works to train their models.

“AI companies are robbing the American people blind while leaving artists, writers, and other creators with zero recourse,” Hawley said in a statement. “It’s time for Congress to give the American worker their day in court to protect their personal data and creative works.”

The legislation would create a new federal tort for data misuse, which would allow any individual to sue any person or company that uses, sells, or exploits their personal data or copyrighted works without clear, affirmative consent.

The proposal also takes on personal privacy protections: AI companies would be required to disclose every third party that would have access to an individual’s data when asking for consent to collect it.

The bill includes provisions for major financial penalties and injunctive relief, and preserves the right for anyone affected by copyright or personal data theft to sue in court and join class actions.

“This bill embodies a bipartisan consensus that AI safeguards are urgent—because the technology is moving at accelerating speed, and so are dangers to privacy,” Blumenthal said in a statement. “Enforceable rules can put consumers back in control of their data, and help bar abuses. Tech companies must be held accountable—and liable legally—when they breach consumer privacy, collecting, monetizing or sharing personal information without express consent.”

California

California legislators adjourned on July 18 for their scheduled summer recess. They will return to Sacramento on August 18. These bills—all now in their second chamber—will await them:

SB 11: AI Abuse Protection Act

SB 11, authored by Sen. Angelique Ashby, would make computer-manipulated or AI-generated images or videos subject to the state’s right of publicity law and criminal false impersonation statutes. It now moves to the Assembly Appropriations Committee.

AB 853: California AI Transparency Act

Assm. Buffy Wicks (D-Berkeley) introduced AB 853, which would require large online platforms (LOPs) to label whether content is AI-generated or authentic. It now sits with the Senate Appropriations Committee.

AB 412: AI Copyright Protection Act

Assm. Rebecca Bauer-Kahan’s AB 412, the AI Copyright Protection Act, has been converted into a two-year bill to give lawmakers more time to resolve outstanding issues. The bill has been effectively paused during the 2025 session and will be considered again in 2026.

AB 1064: LEAD for Kids Act

The Leading Ethical AI Development (LEAD) for Kids Act, authored by Assm. Bauer-Kahan, would create a new AI standards board within the state’s Government Operations Agency, and charge its members with evaluating and regulating AI technologies for children. It now sits with the Senate Appropriations Committee.

SB 243: Companion Chatbots

California Senator Steve Padilla (D-San Diego) sponsored SB 243, which would require AI platforms to provide regular reminders to minors that the chatbot is not human. It now sits with the Assembly Appropriations Committee.

SB 833: Human Oversight of AI in Critical Infrastructure

Sen. Jerry McNerney sponsored SB 833, which would require human oversight is maintained when AI systems are used to control critical infrastructure, including: transportation, energy, food and agriculture, communications, financial services, or emergency services. It now sits with the Assembly Appropriations Committee.

SB 53: CalCompute

Sen. Scott Wiener (D-San Francisco) sponsored SB 53, which is a more dialed-back version of his Safe & Secure Innovation for Frontier AI Models Act (SB 1047), which passed last year before California Gov. Gavin Newsome vetoed it. The bill now sits with the Assembly Appropriations Committee.

Michigan

HB 4668: Safety protocols for critical risk

Rep. Sarah Lightner (R-Springport) introduced the AI Safety and Security Transparency Act (HB 4668) on June 24.

The bill would require developers of large AI models to establish safety protocols that will prevent “critical risk,” meaning the serious harm or death of more than 100 people, or more than $100 million in damages.

The proposal, which also includes whistleblower protections, is now with the Judiciary Committee.

HB 4667: Amending the penal code to include AI

Rep. Lightner also introduced HB 4667, which would establish new criminal penalties for using AI to commit a crime.

For example, if AI was used to duplicate someone’s voice, and then a bad actor used that vocal replica to call up the person’s grandmother and scam the elderly woman out of money.

The bill would make it a felony with a mandatory 8-year sentence to develop, possess, or use an AI system with the intent to commit a crime.

The proposal was introduced on June 24 and referred to the Judiciary Committee, where it remains.

Michigan’s legislative session is scheduled to adjourn in late December.