Technology

Fostering Access, Innovation, and Responsibility in Artificial Intelligence Act established. Establishes the Fostering Access, Innovation, and Responsibility in Artificial Intelligence Act (FAIR AI Act) that requires a developer of a base artificial intelligence model, as defined in the bill, to clearly and conspicuously disclose, in a manner that is appropriate for the medium of the content and is easily accessible to the user of such model, in the terms of service governing the use of such model, certain elements related to the artificial intelligence system. The bill creates the FAIR AI Enforcement Fund for the purpose of supporting agency enforcement of artificial intelligence system misuse, bias, and workforce disruption. Finally, the bill limits the defenses available in any criminal or civil action against a defendant that is alleged to have developed, modified, or deployed an artificial intelligence system that caused harm to a plaintiff. The bill has a delayed effective date of July 1, 2027.

Consumer Data Protection Act; definition of "biometric data"; consent required for processing biometric data. Provides that, under the Consumer Data Protection Act, no consumer, controller, processor, or affiliate of the controller or processor shall process biometric data, defined separately in the bill, concerning an individual without obtaining the individual's consent, or, in the case of the processing of biometric data concerning a known child, without processing such data in accordance with the federal Children's Online Privacy Protection Act.

Consumer Data Protection Act; individual action for damages or penalty; social media platforms. Allows a parent or minor who suffers loss as the result of a violation of Consumer Data Protection Act provisions relating to social media platforms to initiate an action against a controller or processor in violation of such provisions. The bill requires a parent or minor to provide a controller or processor 30 days' written notice and an opportunity for the controller or processor to cure the noticed violation prior to initiating such an action.

Department of Law; Technology Governance and Coordination Program; report. Directs the Office of the Attorney General to establish a Technology Governance and Coordination Program to support the Commonwealth's response to emergent technologies, including artificial intelligence, algorithmic systems, biometric systems, and automated decision-making tools. The bill requires the Office of the Attorney General to submit an annual report to the Joint Commission on Technology and Science by December 1, 2026.

Microchip and semiconductor manufacturing and supply chain tax credits; Virginia Economic Development Partnership Authority evaluation; report. Creates a series of individual and corporate income tax credits for companies engaged in the microchip and semiconductor manufacturing and supply chain business that between January 1, 2026, and December 31, 2036, (i) invest at least $400 million, (ii) create at least 100 new jobs, (iii) pay an average prevailing wage salary, and (iv) submit a plan for use of and committing $50 million of community investments. The bill creates three refundable tax credits in taxable years 2026 through 2030 in amounts equal to (a) five percent of capital investment expenditures incurred during the year, (b) six percent of child care services expenditures incurred during the year, and (c) 7.5 percent of gross wages paid for each new job created during the year.

Department of Criminal Justice Services; law-enforcement agencies and sheriff's departments; policy on use of covered artificial intelligence systems. Requires the Department of Criminal Justice Services to establish a model policy for the use of a covered artificial intelligence system, defined in the bill, by any state or local law-enforcement agency or sheriff's department by October 1, 2026. The bill also requires each local law-enforcement agency and sheriff's department and the Department of State Police to establish and adopt a written policy for the use of a covered AI system by such agency or department that meets or exceeds the model policy established by the Department of Criminal Justice Services by January 1, 2027. The bill requires such policies be publicly available on the law-enforcement agency's or sheriff's department's website.