AI Legislative Update: May 9, 2025

AI-related bills are alive and moving in California, Texas, Nebraska, and New York.

May 9, 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: Three California bills tackling transparency and security of AI systems have been put on a temporary pause, while the Copyright Transparency Act moved to the Assembly floor; Texas TRAIGA is still in a Senate committee; three Nebraska bills focused on protecting kids from AI could hit the floor at any moment; and a New York proposal to protect kids from AI chatbots is moving forward.

california

California lawmakers put three bills on hold this week as they weigh the fiscal implications of proposals that seek to improve transparency and increase security for users of AI platforms.

Known as being put on “suspense file,” the temporary pause is part of the legislative process in California when a bill passes through the Appropriations Committee. All suspense file bills are considered on the same date after lawmakers have time to consider their fiscal implications.

This year, May 23 is suspense file day—the final 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 essentially dead for the 2025 session.

Meanwhile, AB 412, Assm. Rebecca Bauer-Kahan’s Copyright Transparency Act, was approved by the Assembly Judiciary Committee on a 9-1 vote on Tuesday, May 6. The bill went to the Assembly floor for a second and third reading on Wednesday and Thursday. A full Assembly floor vote could come at any time.

Bills on suspense in the Senate include:

SB 11: Artificial Intelligence Abuse Act

Sponsored by Sen. Angelique Ashby (D-Sacramento), SB 11 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 would also require AI platforms to have a consumer warning to notify users that creating and distributing unauthorized or harmful deepfakes violates state law.

SB 468: High-risk artificial intelligence systems: duty to protect personal information

Sen. Josh Becker sponsored SB 468, which would require AI developers to take steps to secure any personal information they receive or process. The bill would subject companies that deploy AI systems to existing state and federal laws regarding the secure handling and protection of personal information.

SB 833: Human Oversight of AI in Critical Infrastructure

Sen. Jerry McNerney sponsored SB 833, which seeks to protect critical infrastructure by requiring human supervision of AI systems that touch state agencies in charge of transportation, energy, food and agriculture, communications, financial services, or emergency services.

Texas

An amended version of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) is still pending in the Senate Business and Commerce Committee following a pubic hearing on May 1.

The bill has been significantly altered from its original version, but pushback from the tech industry and free market groups led to stripping out its application on commercial AI platforms.

Now the bill, originally filed as HB 1709 by Rep. Giovanni Capriglione (R-Tarrant), is largely limited to AI systems used or developed by government agencies.

The Texas legislature is scheduled to adjourn on June 2, 2025.

nebraska

Three Nebraska bills that focus on safety for children and teens who use AI and social media platforms have cleared early readings and are ready for floor votes, which could be scheduled in the next few weeks. They include:

LB 383: the Parental Rights in Social Media Act

Sen. Tanya Storer (R-Whitman) sponsored Nebraska’s LB 383, which is now in enrollment and under review, a final technical editing process before moving to a final reading and floor vote.

The bill would require social media companies to verify that parents have given consent before a minor can create a social media account. It was amended to include LB 172 (Prohibit Conduct Involving Computer-Generated Child Pornography) after that proposal stalled in committee.

LB 140: Relating to Use of Electronic Communication Devices by Students

Sen. Rita Sanders (R-Bellevue), sponsored LB 140, which would mandate that each pubic school board create policies to restrict the use of phones in schools before the start of the next academic year. The bill is now ready and awaiting a final reading and vote.

LB 504: The Age-Appropriate Online Design Code Act

Sen. Carolyn Bosn (R-Lincoln) sponsored this bill, which would require social media and other online services to include design features that prevent compulsive usage of the product. It would also mandate design efforts to prevent severe psychological harm such as anxiety and depression, severe emotional harm, identity theft, and privacy violations.

The bill also restricts apps and platforms from sending push alerts during hours children are in school or sleeping.

In Nebraska, the sole unicameral legislature in the U.S., legislators are scheduled for a 90-day session this year, with adjournment set for June 9.

new York

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

New York Senate Bill 5668, which would require companion chatbots to obtain parental consent before minors can interact with them, is on third reading and 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.

It would also require AI platforms to block minors from their platforms for three days and provide suicide hotline information if the youth mentioned self-harm or suicidal ideation.

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

The 2025 legislative session is set to end June 13.

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