In one paragraph
Iowa's HF 2691 (formerly HSB 635) would create Code chapter 554J making the user whose input prompts an AI the owner of the resulting output, unless the AI's terms of use or a contract says otherwise, and making a person who lawfully trains an AI the owner of it unless rights were transferred by contract. On the House calendar since February 23, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill has not been enacted. If enacted, AI providers' terms of use and contracts would control who owns generated output, and lawful trainers would own the AI they train unless they contracted away those rights.
Key provisions
- Defines artificial intelligence, input, output, train and user (a user does not include someone who only supplies training data).
- Section 554J.2(1): the user whose input prompts an AI to generate output owns the output, subject to any provision in the AI's terms of use or a user-owner contract addressing output ownership.
- Section 554J.2(2): a person who trains an AI owns it if the training data was lawfully obtained and used and the person has not transferred those rights by contract.
- The text has no penalties, enforcement provision, or effective-date section.
- Status: introduced and placed on calendar February 23, 2026; placed on calendar under unfinished business March 19, 2026. Senate bill SF 2199 on the same subject has different text (adds an employer rule and an infringement limit).
Latest legislative action
Mar 19, 2026. Placed on calendar under unfinished business.
Sponsors
| Name | Role |
|---|---|
| COMMITTEE ON APPROPRIATIONS | Primary |
| COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error