Subcommittee reports bill clarifying AI developer and deployer liability, creates special fund
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Summary
The House Communications subcommittee voted to report HB 713 as amended, a bill from Delegate Thomas that defines developer and deployer liability for artificial intelligence, establishes a special treasury fund for enforcement, and narrows the definition of base AI models to those publicly available in the Commonwealth for commercial use.
The House Communications, Technology and Innovation Communications Subcommittee voted to report House Bill 713 as amended, a bill from Delegate Thomas that aims to clarify who is legally responsible for artificial intelligence systems and to create a special fund to support enforcement.
Delegate Thomas told the subcommittee the bill’s goal is to prevent “innovation [from being] stifled when smaller companies do not know what their legal liability is.” He said the measure defines who is a developer and who is a deployer and would establish a treasury special fund so the Commonwealth can finance enforcement and regulatory adjustments without imposing an unfunded mandate.
Unidentified counsel explained the amendment narrows the definition of a “base artificial intelligence model” to models made publicly available in the Commonwealth for commercial use, clarifies the definition of “deployer,” and adds language defining “intentional and substantial modification.”
Bea Gonzales of American Innovators Network, representing small tech companies, testified in favor, saying the framework would help foster innovation and provide clarity for firms working with AI in Virginia. Margaret Durkin, Mid-Atlantic executive director of TechNet (participating online), said TechNet submitted a letter and would need to review the proposed amendments; she said TechNet has specific concerns about the bill’s defenses section.
Members asked practical questions. Delegate Delia Pens asked about the bill’s cost; Thomas said there was no fiscal impact statement yet and that funding levels for the special fund would be an appropriations decision. Delegate Delia Wossman asked whether TechNet’s concerns had been resolved; Thomas said discussions are ongoing and that some concerns pertain to the defenses language in lines 62–70 of the bill.
A motion to report HB 713 as amended carried; the clerk recorded the tally as 5 yes, 2 no, and 1 present/abstain. The bill is now reported out of the subcommittee and will move to fuller committee consideration.