AI Legislative Update: May 30, 2025

May 30, 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: Texas lawmakers passed the TRAIGA bill in the Senate. Three California bills that would regulate AI platforms have moved to third reading in the state Senate. Two bills that would regulate transparency in AI and AI-driven chatbots are progressing in New York. Nebraska passed the third of three bills aimed at protecting kids in the digital realm, and Vermont approved its version of a Kids Code bill.

california

California lawmakers are weighing a number of AI bills this session. Three AI-related bills successfully passed out of suspense last week, allowing them to continue to be considered. The bills would govern AI-generated images or videos; AI chatbots; and the use of AI to oversee critical infrastructure.

Still in play in Sacramento:

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 awaits further action.

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 is now up for a third reading in the Senate before a floor vote.

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 is now up for a third reading in the Senate before a floor vote.

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 has been ordered to a third reading in the Senate.

Connecticut

Lawmakers in Connecticut are considering SB 2, which would require the state to establish an artificial intelligence regulatory sandbox program, which would be a controlled environment where businesses can test innovative products.

The bill passed the Senate on May 14, and was sent to the Assembly for consideration on May 16.

The proposal would regulate developers and deployers of high-risk AI systems – meaning those that are used to make consequential decision in education, hiring, financial or lending access, health care, or other opportunities. AI platforms would be required to inform people interacting with them that they are artificial products, not a human.

It would also hold developers and deployers to a duty of reasonable care to avoid algorithmic discrimination. Developers would need to provide various disclosures and documentation to deployers, including the intended use and data used to train the system and mitigate risk.

The state attorney general would have the authority to enforce provisions of the bill.

nebraska

Nebraska lawmakers passed a bill that would prevent child pornography by regulating how social media and AI platforms are created during the design phase.

Sen. Carolyn Bosn (R-Lincoln) sponsored LB 504, the Age-Appropriate Online Design Code Act. It was sent on May 24 to Gov. Jim Pillen (R) for consideration.

In Nebraska, the only unicameral Legislature in the country, the governor has five days to veto a bill passed by lawmakers. If the governor hasn’t taken action within that time, the bill automatically becomes law.

The legislation would impose duties on social media and AI companies at the design stage with the goal of protecting children from social media and online harms.

It would also require social media and other online services to include design features that prevent compulsive usage, and that avoid severe psychological harm such as anxiety and depression, severe emotional harm, identity theft, and privacy violations. The bill restricts the ability to send push alerts during hours children are in school or sleeping.

Two other new tech-focused laws passed in Nebraska this month, after crossing Pillen’s desk without a veto:

·       LB 383, the Parental Rights in Social Media Act, which requires social media companies to verify parental consent prior to allowing a minor to create a social media account. The new law also makes AI-generated and other child pornography created by minors a Class III felony. Adults who violate the act would be guilty of a class 1D felony.

·       LB 140 restricts student use of smart phones in schools. It 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.

Nebraska’s legislative session is scheduled to end on June 9.

new York

TCAI is closely watching two bills moving through New York’s state Legislature:

AB 6578: Artificial Intelligence Training Data Transparency Act

In Albany, Assm. Alex Bores’s A 6578, the Artificial Intelligence Training Data Transparency Act, passed out of the Science and Technology Committee, and is now being considered by the Rules Committee. The Senate version, S 6955, remains 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)

Texas legislators approved HB 149, the Texas Responsible AI Governance Act (TRAIGA) on May 23.

The proposal creates new requirements for government-deployed AI. The version that passed the Senate included last-minute carve outs by Sen. Charles Schwertner, the bill’s sponsor in the Senate, which create exceptions for hospital districts and higher education institutions.

If the bill is signed into law by Gov. Greg Abbott, as expected, the Act will go into effect on Jan. 1, 2026.

Rep. Giovanni Capriglione spent two years crafting the measure, gathering input from stakeholders around the state before guiding the proposal through the Texas legislature, which meets only during odd-numbered years.

Vermont

S 69: Age-appropriate Design Code (Kids Code)

Vermont lawmakers on Tuesday approved a bill aimed at making social media less addictive for teens.

S69, an age-appropriate design code (kids code) bill, would require social media companies to set pivacy settings by default. It would also ban addictive features like infinite scrolling and notifications.

Rep. Monique Priestley, author of a concurrent bill in the House, said on behalf of the adopted Senate bill: “We’re saying the design of a feature needs to be safe. So, if kids want to directly search content, they can do that. It’s just that they won’t be manipulated into seeing content based on their emotional state.”

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