Technology

Division of Consumer Counsel; duties; artificial intelligence fraud and abuse. Expands the duties of the Division of Consumer Counsel to include establishing mechanisms for receiving and investigating complaints by the Commonwealth's consumers involving emerging technologies, including referring appropriate complaints to the federal, state, and local departments or agencies charged with the enforcement of applicable consumer laws.

Student instruction; internet safety; certain topics. Requires the internet safety component that is integrated into each school division's instructional program as required by its acceptable internet use policy to include instruction on key modern digital safety topics, including online scams, misinformation, and content generated by artificial intelligence.

Virginia Lottery; powers of the Virginia Lottery Board; advertising restrictions; age verification. Directs the Virginia Lottery to study the feasibility of furthering responsible gaming as it relates to the lottery, casino gaming, and sports betting, and to develop an implementation plan to require all lottery terminals to possess proper age verification software to ensure that a consumer is 18 years of age or older. The Director of the Virginia Lottery shall report any findings to the Chairs of the House Committee on General Laws and the Senate Committee on General Laws and Technology by October 1, 2026.

Consumer Data Protection Act; social media platforms and operators; interoperability interfaces. Requires social media platforms and operators, defined in the bill, to implement third-party interoperability interfaces to allow users to share social graph data, defined in the bill, and contextual data associated with artificial intelligence systems, defined in the bill, as the user designates. The bill has a delayed effective date of July 1, 2027.

Commonwealth of Virginia Innovation Partnership Act; Regional Innovation Fund; Commonwealth Commercialization Fund; matching funds. Provides that, for purposes of the Regional Innovation Fund and the Commonwealth Commercialization Fund, any awards from such funds of $100,000 or less shall not require matching funds.

Health carriers; use of artificial intelligence; disclosures. Requires health carriers to disclose to the State Corporation Commission's Bureau of Insurance how artificial intelligence is used to manage claims coverage and to submit all information enabling decisions made by artificial intelligence to the Bureau upon request. The bill also requires health carriers to provide notice to enrollees and health care providers when artificial intelligence has been used to issue an adverse determination and to provide a clear and timely process for appeal of such determination.

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. The bill also requires the Virginia Economic Development Partnership Authority, in collaboration with the Joint Legislative Audit and Review Commission and the Department of Taxation, to evaluate the benefits and impacts of new economic development incentives for companies engaging in the microchip, semiconductor, and related equipment and material supplies sector. A report on such evaluation is due by November 30, 2026.

Consumer Data Protection Act; prohibitions and duties relating to minors. Prohibits a controller of an online service, product, or feature from entering into certain agreements with a known minor, unless such controller obtains verified consent from the minor's parent as specified in the bill. The bill imposes certain duties on a controller of an online service, product, or feature related to advertising, algorithm use, and reasonable care toward known minors. The bill expands the consumer rights of a parent to minors and adds a provision allowing a parent to obtain a copy of the minor's data. Current law offers certain consumer rights to the parents of children younger than age 13. The bill has a delayed effective date of January 1, 2027.

Income tax subtraction; broadband grant fund awards. Establishes an individual and corporate income tax subtraction for any amount of public grant awards received in the taxable year for the exclusive purpose of planning, constructing, expanding, or improving upon broadband infrastructure and services in the Commonwealth beginning in taxable year 2026.

Circuit court clerks; fees; Technology Trust Fund Fee. Increases from $5 to $10 the Technology Trust Fund Fee assessed by the clerk of each circuit court in each civil action and increases the amounts of such fee allocated by the Compensation Board for specific purposes.