Technology

Consumer Data Protection Act; protections for children; definitions. Requires a controller or processor, as such terms are defined in relevant law, to obtain verifiable parental consent, defined in the bill, prior to registering any child younger than 18 years of age with the controller's or processor's product or service or before collecting, using, or disclosing such child's personal data.

App Store Accountability Act; civil penalties; civil action. Requires an app store provider, defined in the bill, to verify the age category of an account holder, obtain verifiable parental consent for a minor account holder, and share such age category and consent information with the developer of an app, defined in the bill. The bill requires a developer to verify the age category of an account holder with a developer's app and notify app store providers of any significant change to a developer's app. The bill also requires a developer to provide a parental consent disclosure for each of its apps to each app store provider that makes the developer's app available on its app store, and such provider shall provide such disclosure on its app store. The bill allows the Attorney General and any minor or parent of a minor who suffers harm by reason of a violation of this bill to initiate an action. The bill has a delayed effective date of July 1, 2027.

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.

A BILL to amend and reenact § 59.1-284.42 of the Code of Virginia, relating to Cloud Computing Cluster Infrastructure Grant Fund; performance agreement.

Virginia Fair Housing Law; Virginia Residential Property Disclosure Act; Virginia Residential Landlord and Tenant Act; personalized algorithmic pricing disclosures; prohibitions; civil penalties; civil actions. Prohibits, for purposes of the Virginia Fair Housing Law and the Virginia Residential Landlord and Tenant Act (VRLTA), certain discriminatory uses of protected class data, defined in the bill, in the sale or rental of a dwelling. The bill requires, when applicable, disclosure of the use of personalized algorithmic pricing, defined in the bill, for purposes of the Virginia Residential Property Disclosure Act and the VRLTA. Under the VRLTA, the bill prohibits a landlord from facilitating an agreement between or among two or more landlords to not compete with respect to any dwelling unit, including by operating or licensing software, a data analytics service, or an algorithmic device that performs a coordinating function, defined in the bill, on behalf of or between and among such landlords. The bill also prohibits a landlord and a multiple listing service, defined in the bill, from setting or adjusting rent prices, rental agreement terms, occupancy levels, or other rental agreement terms and conditions in one or more of his dwelling units based on recommendations from software, a data analytics service, or an algorithmic device performing a coordinating function. The bill allows the Attorney General to seek an injunction and civil penalties to restrain certain violations of the bill and allows any injured individual to bring a civil action to recover the greater of actual or statutory damages and reasonable attorney fees.

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.

Corporations; limited liability decentralized autonomous organizations (LLDs). Creates the Limited Liability Decentralized Autonomous Organization (LLD) Act, which establishes requirements for an LLD, defined as a distinct legal entity that operates through decentralized governance using blockchain technology and smart contracts that execute decentralized decision-making mechanisms. The bill permits the formation of an LLD by filing articles of formation with the State Corporation Commission (the Commission), and, if certain requirements are met, the Commission may issue a certificate of formation. The bill includes requirements for amending an LLD's articles of formation and also includes requirements for LLD bylaws, operating agreements, underlying smart contracts, and participant interests and management of the LLD. Under the bill, an LLD and its participants have limited liability for debts, obligations, and liabilities of the LLD. The bill also includes provisions related to recordkeeping, transferring interests, withdrawal of participants, and dissolution of the LLD. The bill directs the Commission to adopt emergency regulations to implement certain provisions of the bill. Except for the emergency rulemaking, the provisions of the bill have a delayed effective date of January 1, 2027.

Consumer Data Protection Act; online device pricing; prohibition. Provides that no controller or processor shall, in connection with a consumer transaction, generate, in whole or in part, a price offered to a consumer through the consumer's online device based on (i) the hardware or hardware state of the online device, as those terms are defined in the bill, (ii) the presence or absence of any software on the online device, or (iii) precise geolocation data of the online device when used to set a price based on inferences about the consumer made from such data. The bill provides for exemptions in certain instances.