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.

Department of Education; best practices for implementation in public schools of technology tools to assist with the identification of students at risk of engaging in self-harm or intending to inflict harm on others; report. Directs the Department of Education to convene a work group consisting of representatives set forth in the bill, as determined by the Department in consultation with and based on consideration of suggestions from statewide education organizations and appropriate technology industries, for the purpose of identifying and making recommendations to the chairs of the Senate Committee on Education and Health and the House Committee on Education on best practices for the procurement, implementation, and use in public schools of technology tools designed to assist with the identification of students at risk of engaging in self-harm or intending to inflict harm on others. The bill directs the work group to submit a report on its findings and recommendations to the chairs of the Senate Committee on Education and Health and the House Committee on Education by November 15, 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.

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.

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; 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.