AI Legislative Update: May 16, 2025

May 16, 2025 — During the state legislative season TCAI will offer weekly updates every Friday on a variety of AI-related bills making progress in capitol buildings around the nation.

This week: Congress grabbed headlines in AI policy circles as House members slipped a rule into the proposed Budget Bill that would nullify all state-level AI-related laws for the next ten years. Meanwhile, the California Assembly passed a bill that would protect performers, authors, and artists from AI copyright infringement; Texas remained in a holding pattern on a bill that would regulate government-deployed AI; Nebraska adopted a parental rights bill on social media; and New York remained close to getting key AI companion chatbot protections onto the Senate floor.

congress

House members move to strip states of all legislative power over AI development and deployment: At a Wednesday markup hearing (May 14) to consider legislative recommendations for budget reconciliation, House Energy & Commerce Committee Republicans advanced a 10-year moratorium on enforcing state legislation on artificial intelligence. The provision, buried in Section 43201(c) of the committee’s budget reconciliation proposal, would functionally strip the public of any meaningful recourse in the face of AI-related harm.

The big budget bill stalled in the House on Friday, but not because of the AI clause. A group of House Republicans objected that the bill’s budget cuts did not go far enough.

The Guardian reported: “At a House budget committee hearing on Friday [May 16] intended to advance the measure one step closer to a floor vote, four Republican members of the far-right Freedom Caucus joined with the Democratic minority to block it from proceeding, arguing the legislation does not make deep enough cuts to federal spending and to programs they dislike.”

california

California has a number of AI bills in consideration this session, with several on hold while their financial implications are being weighed. However, two proposals that TCAI has been watching closely passed the State Assembly this week.

AB 412: The Copyright Transparency Act

The California State Assembly passed AB 412, the AI Copyright Transparency Act, this week on a vote of 42-13. The proposal now moves to the Senate.

The bill would establish that AI developers have a duty to document any covered copyrighted materials that were used to train an AI platform. It also would require developers to create a publicly available platform, or use a third-party platform, where copyright owners can submit requests for information. The proposal would also codify the right of copyright owners to bring civil actions against AI developers who fail to provide the required information.

AB 2: Injuries to Children: Civil Penalties

AB 2, a bipartisan California social media "duty of care" bill sponsored by Assm. Josh Lowenthal (D) and Assm. Joe Patterson (R), passed the full Assembly on Monday with a vote of 66-0. It’s now waiting for committee assignment in the Senate.

The proposal would make social media platforms liable for damages if a platform fails to exercise ordinary care or skill that causes injury to a child.

Senate AI Bills Now on Suspense

California lawmakers have put on hold multiple bills that would increase transparency and security of AI platforms as they consider the various fiscal implications.

This is called being put on “suspense file,” a temporary pause that occurs in California when a bill passes through the Appropriations Committee. All suspense file bills are considered on the same date after lawmakers review the budget implications.

Next Friday, May 23, is the day on which these three bills and hundreds of others can be considered for movement to a full floor vote. If that doesn’t happen, the bills are dead for the 2025 session.

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 a chatbot is AI and not human. It was placed on suspense file on Monday.

The goal is to protect children from “addictive, isolating, and influential aspects” of AI.

The bill would prohibit AI companies from using “addictive engagement patterns,” and require them to submit annual reports to the State Department of Health Care Services. The reports must provide details on how many times it detected suicidal ideation by kids using the platform, as well as the number of times a chatbot brought up the topic.

The bill would also require companies tell users that their chatbots might not be appropriate for some kids.

SB 813: Multistakeholder Regulatory Organizations

Sen. Jerry McNerney (D-Stockton), sponsored SB 813, which would direct the California Attorney General to create a process for certifying private third-party multistakeholder regulatory organizations (MROs) to act as auditors for AI companies.

These MROs would review AI platforms to ensure that all AI models or applications mitigates specific high-risk affects of AI. Specifically, it would evaluate and gauge the risks associated with cybersecurity, chemical, biological, radiological, and nuclear threats, malignant persuasion, and artificial intelligence model autonomy and exfiltration.

SB 813 was also placed on suspense on Monday.

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. It was put on suspense file earlier this month.

SB 468: Cybersecurity Upgrade for AI

Sen. Josh Becker sponsored SB 468, which would require AI developers that process personal information to make the same efforts to secure that information that other industries are subject to under existing state and federal laws. It was put on suspense file earlier this month.

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 was put on suspense file earlier this month.

nebraska

LB 383: Parental Rights in Social Media Act

Nebraska legislators gave overwhelming approval Wednesday to a bill intended to make children safer online. Senators voted 46-3 to pass Sen. Tanya Storer’s LB 383 after the final round of debate. The bill, known as the Parental Rights in Social Media Act, now heads to the desk of Gov. Jim Pillen, who aided its introduction and has supported it throughout the 2025 session. Nebraska’s legislative session is scheduled to end on June 9.

new york

AB 6578: Artificial Intelligence Training Data Transparency Act

In Albany, Assm. Alex Bores’s A 6578, the Artificial Intelligence Training Data Transparency Act, remains sitting with the Science and Technology Committee. The Senate version, S 6955, is with the Senate Internet and Technology Committee.

SB 5668: Liability for Misleading or Harmful Information Provided by a Chatbot

New York Senate Bill 5668, which would require companion chatbots to obtain parental consent before minors can interact with them, remains on third reading and is still pending a floor vote—which could come at any time.

New York Sen. Kristen Gonzalez (D-Queens, Manhattan and Brooklyn) introduced the chatbot bill, which would also establish liability if a chatbot provides misleading, incorrect, contradictory, or harmful information to a user that results in financial loss or other harm.

The Assembly version of the bill is still in the Consumer Affairs and Protection Committee.

New York’s 2025 legislative session is scheduled to end June 13.

texas

HB 149: Texas Responsible AI Governance Act (TRAIGA)

Sen. Charles Schwertner, chair of the Senate Business and Commerce Committee, sponsored HB 149 in the Senate. The bill, which originated in the House from Rep. Giovanni Capriglione, would regulate government-deployed AI. The bill remains in the Senate Business and Commerce Committee with no action this week.

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