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States Revive Efforts to Pass AI Laws After 10-Year Moratorium Dies in Congress

By  |  July 14, 2025
States Revive Efforts to Pass AI Laws After 10-Year Moratorium Dies in Congress

With the moratorium on state AI laws dropped from the recently passed budget reconciliation bill, new regulations that might have been nixed are back on the legislative agenda in key state houses. Bills now pending in California and New York, two major tech hubs, as well as Michigan could have the biggest impact, with other states likely to take their cues from those, according to an analysis by the Carnegie Endowment for International Peace.

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    In California, Sen. Scott Wiener (D-San Francisco), the author of SB 1047 that was vetoed by Gov. Gavin Newsom last year, is back with a new bill covering some of the same ground. The new bill, SB 53, draws on the recommendations of the Working Group on AI Frontier Models convened by Newsom in the wake of his veto, which included, and focuses on transparency into AI model safety and security protocols, critical incident reporting requirements, and whistleblower protections.

    “As AI continues its remarkable advancement, it’s critical that lawmakers work with our top AI minds to craft policies that support AI’s huge potential benefits while guarding against material risks,” Wiener said in a press release announcing the bill. “Building on the Working Group Report’s recommendations, SB 53 strikes the right balance between boosting innovation and establishing guardrails to support trust, fairness, and accountability in the most remarkable new technology in years.”

    The bill must work its way through multiple committees in the Assembly and Senate before a full vote in either.

    In New York, the Responsible AI Safety and Education (RAISE) Act has been passed by the state legislature and currently awaits action by Gov. Kathy Hochul. Like the California measure, the RAISE Act focuses on safety and security transparency and reporting requirements. Hochul has until the end of the year to propose revisions to the act but is yet to signal her priorities.

    Read more: European AI Law to Prioritize Openness, Copyright Protection and Model Safety

    Michigan’s AI Safety and Security Transparency Act is the most nascent of the three initiatives. It focuses on AI model’s safety and security protocols, requires external audits of those procedures, and whistleblower protections.

    Having lost their battle to squelch state laws, some technology companies have turned their attention to pushing for federal regulations that would pre-empt state measures and establish a single national standard.

    Federal-level regulations would “establish consistent standards and promote the secure, fair development of AI,” a spokesperson for Amazon told the Wall Street Journal. “We will continue to work with legislators at both the federal and state level to ensure any regulation drives standards that support U.S. leadership on AI.”

    Google took a similar stance in its latest public policy recommendations, per the Journal, urging Congress to ensure that the U.S. avoids a fragmented regulatory environment.” That includes “supporting federal pre-emption of state-level laws.”

    Microsoft said in a recent report it is “well prepared to comply” with emerging AI regulations but continues to advocate for a national standard.

    In addition to the three new state bills, California, Colorado, Utah and Texas have already passed AI-specific laws, while another 15 states have considered similar legislation that could now be revived. Nearly all states have passed data privacy and protections measures that could also impact AI.