Outside of Legislative Sessions AI Policy Continues to Be Written
Contrary to popular belief, state policy continues all year long. From proposals on Governor’s desks to governmental rulemaking for policy implementation to court decisions, the landscape continues to shift.
A handful of heads of state have been busy with their pens making new laws and advancing AI related initiatives. In one state, the Governor halted a new AI chatbot because it did not go far enough.
Colorado’s AI law takes the spotlight again after legislators came to an agreement in May following a multi-year negotiation. Colorado’s AG is asking for input ahead of rulemaking for two new AI laws and the Federal Trade Commission’s request for comment on new AI policy implies Colorado’s new AI law is coercing companies into altering the output of their AI models.
State Policy Action
AZ: The Governor recently vetoed a bill (HB 2311) focused on minor and AI chatbot interactions. In the Governor’s veto letter, she indicated that the legislation did not go far enough.
CA: California legislators contemplated many AI measures before heading off to summer recess and the Governor issued two new AI announcements building off of previous executive orders. The state has partnered with the University of California to launch an AI unemployment tracker and initial analysis of the data has indicated no evidence of rising statewide unemployment claims in AI-exposed occupations. The state has also partnered with Anthropic for state agency AI adoption and training.
CO: The Colorado Attorney General is currently seeking informal feedback for rules his office will issue to implement two AI-focused laws the state legislature recently passed. The first (SB 189) is the use of automated decision-making technology in consequential decisions and the second (HB 1263) is focused on AI chatbot safety.
The office is particularly interested in feedback on:
Areas that need clarification;
Consumer concerns;
Anticipated compliance challenges;
Impacts of these new laws on business operations;
Cost concerns; and.
Relevant research.
This feedback is prior to the official rulemaking process where the office will issue draft rules and open up public comment towards the end of the summer.
HI: Last week, the Governor signed two bills related to sharing intimate images online. The first bill (HB 1682) allows individuals harmed by someone sharing a sexually explicit digitally created image to sue. The second bill (SB 2135) creates a new felony for nonconsensual disclosure of intimate or private images, including images artificially created.
IL: Last week, the Governor signed SB 315 focused on the safety, transparency, and oversight of the development of the largest and most capable AI models. Developers must align with an AI framework, report safety incidents, protect whistleblowers, and require third-party audits.
NJ: Last week, a fast-moving bill focused on data brokers was introduced and signed by the governor within a few days. The new law (AB 5328) puts new requirements on data brokers and data collectors in the state, including a required annual registration. The law also amends the state’s privacy law to apply to more entities and prohibiting them from collecting sensitive data.
NH: Recently, the Governor signed HB 1460, prohibiting the sale of children’s personal data.
VT: Recently, the Governor signed HB 211 which amends the state’s current law focused on data brokers. The new law builds on previous requirements by expanding compliance obligations, creating new consumer rights, enhancing registration requirements, adding data breach notification requirements and strengthening enforcement.
On July 1, FTC released a proposed policy statement on the “Suppression of Accuracy in AI Systems.” The policy statement clarifies that companies may be engaging in “unfair or deceptive” conduct by manipulating the behavior of their AI systems contrary to reasonable consumer expectations for objectivity and accuracy. The announcement calls out Colorado’s new AI law. The notice states, “Some state laws seek to impose their own patchwork of regulations on AI. Colorado’s Artificial Intelligence Act, for instance, appears to coerce companies into altering the output of their AI models to comply with and advance the state’s ideological objectives.” Public comment is open until July 31st.
The US Department of Labor launched $50 million in grants to retrain professionals due to AI displacement. Grants will also target domestic manufacturing, aerospace, energy production and construction sectors.
At the end of June, the Supreme Court ruled 6-3 in Chatrie v. United States that found individuals have a reasonable expectation of privacy when authorities obtain their cellphone location data.
Center for Civic Futures
United Nations
Future Investment Initiative Institute
Tech Policy & Governance Jobs
Company/Organization: | Title: | Closing Date: |
|---|---|---|
Code Path | Ongoing | |
Horizon Institute for Public Service | 07/22/2026 | |
The George Washington University’s Elliott School of International Affairs | Ongoing | |
Media Impact Funders | 07/13/2026 | |
Cato Institute | Ongoing |
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Disclosure: This is a human-written and driven publication. As a small business owner and mighty team of 1, I use AI tools to optimize my small business operations as a part of my admin tech stack. Regarding this publication, AI is mainly used to help with catchy titles, as a thesaurus when writing and a partner when creating cartoons. (Thanks, Canva, and not an ad!) As a secret doodler, I add my human touch using my digital pad and pen. I also use Grammarly, with AI built in, to help with copy editing/grammar check (again, mighty team of one!) Thanks for reading. 😊
