AI Legislative Update: June 27, 2025

June 27, 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: Texas Gov. Greg Abbott signed the Texas Responsible AI Governance Act (TRAIGA) into law; Illinois passed a bill prohibiting AI chatbots from performing as mental health therapists; and California legislators continued to move a number of AI-related bills through the hearing process in their second chambers.

California

SB 11: AI Abuse Protection Act

Sen. Angelique Ashby sponsored SB 11, which would make computer-manipulated or AI-generated images or videos subject to the state’s right of publicity law and criminal false impersonation statutes.  The proposal passed the Senate with minor language amendments and was sent to the Assembly. It moved through several committees and was re-referred on June 18 to the Committee on Public Safety. Its next hearing will be with the Assembly Committee on Public Safety on July 1.

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 would also require manufacturers of phones, cameras, or any device that captures images or audio to give users the option to apply digital signatures to authentic material they produce. The bill passed the Assembly on June 2 and was sent to the Senate. It has been with the Senate Judiciary Committee since June 11.

SB 53: CalCompute

Sen. Scott Wiener (D-San Francisco) sponsored SB 53, which is a second, more dialed-back version of his Safe & Secure Innovation for Frontier AI Models Act (SB 1047), which passed both chambers last year before California Gov. Gavin Newsome vetoed it.

The bill would protect whistleblowers who work for developers of “foundational models” for AI platforms trained on broad sets of data. If the bill passes, whistleblowers working for these AI companies would be protected if they disclose information to the California Attorney General or other authorities regarding potential critical risks posed by the developer’s activities or any alleged false or misleading statements made by the company about risk management practices. 

The bill passed the Senate on May 28 and has been with the Assembly Committees of the Judiciary and on Privacy and Consumer Protection since June 12. It is scheduled for a hearing with the Assembly Judiciary Committee on July 1.

AB 412: AI Copyright Protection Act

Assm. Rebecca Bauer-Kahan’s AB 412, the AI Copyright Protection Act, was passed by the full Assembly on May 12 and sent on to the Senate. The Senate has assigned it to both the Judiciary and Appropriations committees, where it remains.

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. The proposal passed in the Senate on June 3. It was then sent to the Assembly, where it was read for the first time. On June 9 it was sent to the Committees of the Judiciary and Privacy and Consumer Protection. It was scheduled for a first hearing for June 24, but that was delayed until July 8, to ensure a key witness will be available to testify.

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. SB 833 passed in the Senate on June 3. It was then sent to the Assembly where it was read for the first time. On June 9 it was referred to the Committee on Privacy and Consumer Protection, where it remains.

illinois

HB 1806: Wellness and Oversight for Psychological Resources Act

This bill, intended to strictly limit the use of AI chatbots as mental health therapists, was passed by the state legislature on June 24 and sent to the desk of Gov. J.B. Pritzer.

HB 1806 provides that an individual, corporation, or entity may not provide, advertise, or otherwise offer therapy or psychotherapy services to the public unless the therapy services are conducted by an individual who is a licensed professional.

Limitations on AI use in therapy practice: The bill allows a licensed therapy professional to use an artificial intelligence system only to the extent the use of the artificial intelligence system meets the definition of permitted use of artificial intelligence systems. A licensed professional may not use an artificial intelligence system in therapy or psychotherapy services to make independent therapeutic decisions, directly interact with clients in any form of therapeutic communication, or generate therapeutic recommendations or treatment plans without the review and approval by a licensed professional.

texas

HB 149: The Texas Responsible AI Governance Act (TRAIGA)

On June 23, Texas Gov. Greg Abbott signed the Texas Responsible AI Governance Act (TRAIGA) into law.

The enactment of the 31-page HB 149 represents the first red-state adoption of a comprehensive AI law designed to encourage tech innovation while protecting Texans from harm.

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Transparency Coalition statement: America deserves a full and free discussion of AI, not a 10-year gag order