Technology

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.

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.

Use of artificial intelligence-based tools; covered artificial intelligence; disclosure of use. Requires the use of covered artificial intelligence, as defined in the bill, in a criminal investigation to be disclosed in a police report filed for that investigation. Such a report shall be submitted to the attorney for the Commonwealth upon arrest or issuance of a summons and made available to the individual under investigation or such individual's counsel. The bill provides that any use of covered artificial intelligence subsequent to arrest shall be disclosed to the attorney for the Commonwealth and the individual under investigation as soon as practicable but no later than 30 calendar days following such use. The bill enumerates what each report shall include regarding the use of covered artificial intelligence and provides that the first draft of any report or record created in whole or in part by generative artificial intelligence shall be retained for as long as the final report is retained. The bill also provides that the program used to generate a draft or final report shall maintain an audit trail that identifies (i) the person who used artificial intelligence to create or edit the report; (ii) any changes made to the report following the initial draft; and (iii) the video and audio footage used to create a report, if any. The bill provides that the Attorney General may investigate and, if warranted, bring a civil action against any law-enforcement agency to obtain equitable or declaratory relief to enforce the provisions of the bill and provides that a resident of the jurisdiction may bring a civil action against the law-enforcement agency to obtain equitable or declaratory relief to enforce the provisions of the bill. The bill requires such plaintiff to provide written notice of any alleged violation to the law-enforcement agency at least 90 days prior to filing suit, in a manner that is reasonably calculated to enable the law-enforcement agency to cure the alleged violation.

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.

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.

Department of Education; artificial intelligence system use in instructional settings; development of AIS safety guidance required; AIS Innovation in Education Pilot Program established; report. Requires the Department of Education, in consultation with school divisions and other relevant stakeholders, to compile information on current uses of artificial intelligence systems (AIS) for student instruction in public schools in the Commonwealth and to establish and post in a publicly accessible location on its website guidance for the safe, ethical, and equitable use of AIS in instructional settings in public elementary and secondary schools. The bill requires each school board to establish, implement, and enforce policies consistent with the guidance developed by the Department in accordance with the provisions of the bill. The bill also directs the Department to establish and oversee the AIS Innovation in Education Pilot Program for the purpose of funding, evaluating, and scaling innovative uses of AIS in public elementary and secondary schools by providing support to school divisions in piloting AIS applications for instruction, tutoring, student engagement, operational efficiency, and teacher support and to submit an annual report to the Chairs of the House Committee on Education and the Senate Committee on Education and Health by December 1. The Pilot Program has an expiration date of July 1, 2030. This bill is identical to SB 394.

Voter registration; list maintenance; third-party data exchanges; approval by State Board of Elections. Requires the Commissioner of Elections, prior to entering into or terminating a memorandum of understanding or modifying the terms of an existing memorandum of understanding with any third party for the exchange of voter registration data, to submit the proposed memorandum of understanding, the reason for termination, or the proposed modifications, as appropriate, to the State Board of Elections for review and approval. Approval shall require a vote of two-thirds of the State Board. The bill also requires the Commissioner of Elections to apply for, enter into, and maintain membership for the Commonwealth in the Electronic Registration Information Center.

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.

Surveillance pricing; prohibited; civil penalties. Prohibits the use of surveillance pricing in connection with a consumer transaction. The bill defines "surveillance pricing" as the selling or offering for sale of a good or service at a customized price for a specific consumer or group of consumers that is based, in whole or in part, on personal data that is collected through electronic surveillance technology, regardless of whether the seller collected or purchased the personal data. The bill provides that a violation of its provisions constitutes a prohibited practice under the Virginia Consumer Protection Act.

State government; transaction of public business; prohibited website domains. Prohibits a public body, defined in the bill, from maintaining an official website for public use with a domain other than a .gov, .edu, or .museum domain. The bill provides that any email address that a public body provides to its employees shall utilize a .gov domain and directs the Virginia Information Technologies Agency to promulgate regulations to implement the provisions of the bill. The bill has a delayed effective date of July 1, 2029.