AI Legislative Update: May 23, 2025

May 23, 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: In Congress, the House passed a Budget Bill that would nullify all state-level AI-related laws for the next ten years. It now moves to the Senate. Meanwhile, the California legislature’s “suspense day” on May 23 saw two AI-related bills die and three move on to further consideration. Nebraska adopted a second bill on kids and social media, and Texas’s TRAIGA bill moved ahead in the Senate.

congress

House members on Thursday approved a Budget Bill that would strip states of all legislative power over AI development and deployment.

The provision, buried in Section 43201(c) of the budget reconciliation proposal, would functionally strip the public of any meaningful recourse in the face of AI-related harm.

The bill now moves to the Senate, where it faces increased scrutiny.

california

California has a number of AI bills in consideration this session. Several Senate bills have been on hold with the Senate Appropriations Committee. On Friday, May 23, that committee held its annual “suspense vote,” with three AI-related bills successfully passing out of suspense (which means they will continue to be considered), and two effectively dying for the remainder of the 2025 session.

Senate AI Bills: Results of the May 23, 2025, “Suspense Day” vote

The full result of the “Suspense Day” vote in the Senate is available here.

SB 11: AI Abuse Protection Act

Alive and moving: Sen. Angelique Ashby’s 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.

SB 11 successfully moved out of suspense during the Senate Appropriations Committee meeting on May 23.

SB 243: Companion Chatbots

Alive and moving: 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.

SB 243 was successfully passed out of suspense by the Senate Appropriations Committee on May 23.

SB 468: Cybersecurity Upgrade for AI

Died in suspense: 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 468 did not move out of suspense during the Senate Appropriations Committee meeting on May 23, and will no longer be considered during the 2025 session.

SB 813: Multistakeholder Regulatory Organizations

Moved to 2026: 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.

SB 813 was declared a two-year bill by the Senate Appropriations Committee on May 23, which means it will not longer be considered during the 2025 session but will re-appear in early 2026.

SB 833: Human Oversight of AI in Critical Infrastructure

Alive and moving: 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 successfully moved out of suspense during the Senate Appropriations Committee meeting on May 23.

nebraska

LB 140, Use of Electronic Devices by Students

LB 140, which restricts student use of smart phones in schools, passed 48-1 on May 14, and has become law absent a veto by Gov. Pillen. Sen. Rita Sanders (R-Bellevue), sponsored the bill, which takes effect immediately and requires all public school boards to establish policies to restrict the use of phones in schools before the start of the next academic year.

The bill includes some exceptions, including: medical needs, emergency situations, educational purposes, or if the child has an individualized education plan.

Still in play in Nebraska: LB 504, the Age-Appropriate Online Design Code Act, sponsored by Sen. Carolyn Bosn (R-Lincoln), which imposes duties on social media companies at the design stage with the goal of protecting children from social media and online harms. Nebraska’s legislative session is scheduled to end on June 9.

For a more detailed dive into Nebraska’s bills, see our full post here.

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 advanced to its third reading on March 17, and is awaiting action.

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 was added to the Senate’s Notice of Intent list on Friday, May 23.

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