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NC S735: AI Innovation Trust Fund

In Committee North Carolina · 2025–2026 session

Last verified Oct 20, 2026 · official bill text

S735 · where it stands

1 of 5 steps complete
  1. Introduced In committee
  2. Passed first chamber
  3. Passed both chambers
  4. Enacted
  5. Effective
What do these statuses mean?
Introduced
Filed in the legislature; may be waiting for a committee hearing.
Passed a chamber
Approved by one or both chambers; awaiting further action.
Enacted
Signed into law, or became law without a signature or over a veto.
Effective date
The date the law says it takes effect. Once it has passed, the page shows "Effective" and the date. A court order can still block a law; if we know of one, the summary says so.
Dead / vetoed
Vetoed, failed, or the session ended without action.

In one paragraph

North Carolina's SB 735 would create an Artificial Intelligence Innovation Trust Fund, administered by the Secretary of Commerce, for grants to AI companies and AI entrepreneurship programs, with $750,000 appropriated for 2025-2026. It would also set safety duties for developers of covered AI models and computing cluster operators, enforced by the Attorney General. Filed March 25, 2025; re-referred to Appropriations/Base Budget March 26, 2025; 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. Developers of covered AI models and computing cluster operators would face safety, reporting and whistleblower-protection duties enforced by the Attorney General.

Key provisions

  1. G.S. 143B-472.83A: a nonreverting trust fund for grants or financial assistance to companies developing or deploying AI models in key industry sectors and to AI entrepreneurship programs.
  2. G.S. 143B-472.83B: before training a covered model, a developer must, among other steps, implement a written and separate safety and security protocol; developers must also annually retain a third-party investigator and report each AI safety incident.
  3. G.S. 143B-472.83C: operators of computing clusters must implement written policies and procedures.
  4. G.S. 143B-472.83D: the Attorney General may enforce the Part through civil actions in superior court; contract terms waiving liability are void.
  5. G.S. 143B-472.83E: developers may not prevent or retaliate against employees who disclose information to the Attorney General.
  6. Section 2 appropriates $750,000 (nonrecurring, General Fund) to the Department of Commerce for 2025-2026; Section 3 sets an effective date of July 1, 2025.
  7. Re-referred to the Senate Committee on Appropriations/Base Budget on March 26, 2025.

Latest legislative action

Mar 26, 2025. Re-ref Com On Appropriations/Base Budget

Topics and industries

Related topics

Frontier or General-Purpose AIAI Liability

Affected industries

TechnologyGovernment

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

Related AI laws in North Carolina

All North Carolina bills →
S257 2026 Appropriations Act. H591 AN ACT TO ESTABLISH SEXUAL EXTORTION OFFENSES, TO UPDATE OFFENSES RELATED TO SEX H814 Neighborhood Occupantless Vehicle. H375 AI/Ban Deceptive Ads SB963 AI Chatbots-Licensing, Safety, and Privacy. HR1177 Consumer Protection Artificial Intelligence Bill of Rights.

Same topic in other states

New York A08833 Establishes understanding artificial intelligence responsibility act requiring d Illinois SB 3444 AI Model Safety Virginia SB365 Fostering Access, Innovation, and Responsibility in Artificial Intelligence Act; Massachusetts S37 Promoting economic development with emerging artificial intelligence models and Minnesota HF4544 License for artificial intelligence independent verification organizations estab Arizona HB4098 Artificial intelligence business; attorney general