Technology

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.

Retail sales and use tax; commercial and industrial exemptions; data centers. Limits, beginning July 1, 2026, the retail sales and use tax exemption for computer equipment or enabling software to (i) the purchase or lease of equipment or enabling software for use in a data center, provided that such purchase or lease takes place prior to the start of operations for such data center, or (ii) the purchase or lease of equipment or enabling software as part of a refresh cycle of an existing data center. The bill defines "refresh cycle" to mean purchases or leases made to replace, repair, or upgrade the equipment or enabling software that improve the energy efficiency of such equipment or software.

Zoning; wireless facility modifications; application process. Prohibits a locality from denying an application for the modification of an existing wireless facility if (i) the modification would not substantially change the physical dimensions of the existing wireless facility; (ii) the modification involves the co-location of new transmission equipment, the removal of transmission equipment, or the replacement of transmission equipment; and (iii) the request meets the requirements of the bill. The bill provides that a modification does not substantially change the physical dimensions of the existing wireless facility if it entails the excavation or deployment of transmission equipment within 30 feet, in any direction, of the existing wireless support structure or base station. The bill also provides various requirements for local approval within a specified timeframe, permits any applicant or locality to bring claims related to the bill to any court of competent jurisdiction, and prohibits any party, other than the applicant or locality, from having an actionable appeal for the issuance of permits or authorizations made pursuant to the bill.

Department of Education; STEM+C Competition Grant Program eligibility. Requires the Department of Education, prior to the 2026 application period for grants pursuant to the STEM+C Competition Team Grant Program (the Program), to consider making the following changes to the grant application and eligibility guidelines: (i) clarify that, in accordance with the provision of relevant law that provides that the purpose of the Program is to provide grants for use in establishing or supporting STEM+C competition teams, grants may be awarded to establish new STEM+C competition teams or support existing STEM+C competition teams and (ii) provide that, in the event that grant applications exceed available funds, priority shall be given to applications for the establishment of new STEM+C competition teams with demonstrated financial need.

Unauthorized use of voice or likeness; punitive damages; statute of limitations. Expands the existing ability for any person to maintain a suit in equity, including the accompanying remedies available and statute of limitations, for the unauthorized use of his name, portrait, or picture for advertising purposes or for the purposes of trade to include the unauthorized use of his voice or likeness. This bill is identical to SB 753.

Government Data Collection and Dissemination Practices Act; dissemination of personal information to federal government; civil penalties. Provides that any agency or political subdivision of the Commonwealth shall only disseminate personal information (i) to the extent necessary to comply with state or federal law, including the federal Health Insurance Portability and Accountability Act; (ii) to the extent necessary to carry out the administration of a state or federal program pursuant to state or federal law; (iii) to comply with a subpoena, court order, or administrative proceeding; (iv) to the extent necessary to ensure fulfillment of the obligations of a purchase or contract made in accordance with the Virginia Public Procurement Act or a memorandum of understanding or management agreement made in accordance with the Restructured Higher Education Financial and Administrative Operations Act; (v) when the data subject has given consent; or (vi) to the extent necessary to accomplish a proper purpose of the agency. The bill also prohibits an agency or political subdivision from selling personal information. The bill authorizes a court, in the case of a willful and knowing violation, to subject a specific public officer, appointee, or employee of any agency to civil penalties.

Department of Education; assessment; certified student support agencies; report. Requires the Department of Education (the Department) to assess the impact of developing a program to provide student support programs to students enrolled in a public elementary or secondary school through certified student support agencies, as defined in the bill. The bill requires the Department, in conducting such assessment, to consider (i) a framework by which a certified student support agency would enter into a memorandum of understanding with a school board for the purpose of providing student support programs, as defined in the bill, and suggested components of such memorandums of understanding, such as (a) documentation establishing the organization's nonprofit status, (b) a description of each student support program that such organization provides, (c) policies and procedures relating to privacy, background checks, mandated reporting, and the transmission, collection, use, and disposal of student personal information, and (d) consent forms and procedures to be used by such student support programs to obtain the necessary consent from the parent of any student under 18 years of age; (ii) the feasibility of establishing and administering a certification process for certified student support agencies; (iii) potential compliance monitoring and enforcement mechanisms and subsequent penalties for noncompliance to ensure that each certified student support agency complies with such program; (iv) policies and procedures for the secure disposal of a student's personal information upon such student's withdrawal from a student support program, upon the cessation of any such program, or upon such student's graduation or transfer from the school division; and (v) cost estimates, including staffing needs, for the development and implementation of such program. The bill requires the Department to submit a report on its findings to the Chairs of the Senate Committees on Finance and Appropriations and Education and Health and the House Committees on Appropriations and Education no later than November 1, 2026. This bill is identical to HB 178.

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.

Commonwealth of Virginia Innovation Partnership Act; Regional Innovation Fund; Commonwealth Commercialization Fund; matching funds. Provides that, for purposes of the Regional Innovation Fund and the Commonwealth Commercialization Fund, any awards from such funds of $100,000 or less shall not require matching funds.

Joint Commission on Technology and Science; artificial intelligence; independent verification organizations. Directs the Joint Commission on Technology and Science (JCOTS) to evaluate the feasibility and impact of developing a framework for any person or entity seeking to act as an independent verification organization that assesses artificial intelligence models' or applications' adherence to standards reflecting best practices for the prevention of personal injury and property damage. The bill directs JCOTS to submit a report with its recommendations and any findings to the Chairs of the Senate Committees on Finance and Appropriations and General Laws and Technology and the House Committees on Appropriations and Communications, Technology and Innovation by November 1, 2026. This bill is identical to SB 384.