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AI Summary
The FAIR AI Act mandates disclosures in AI model terms of service, specifying elements like data usage and model limitations, limits defenses in harm-related legal actions, and supports enforcement against AI misuse.
Business Impact
If you develop AI models, you must disclose their capabilities and limitations by July 1, 2027, or face penalties for misuse.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
The Fostering Access, Innovation, and Responsibility in Artificial Intelligence Act (FAIR AI Act) introduces significant requirements for developers of base AI models in Virginia. It mandates clear and conspicuous disclosures in the terms of service, specifying elements such as data usage, model limitations, and potential biases.
Key Provisions
- Developers must disclose information in clear and conspicuous terms in the terms of service, appropriate for the medium, with elements such as data usage, model limitations, and potential biases specified by the bill.
- Establishment of the FAIR AI Enforcement Fund for supporting agency enforcement of AI system misuse, bias, and workforce disruption.
- Limitation of defenses in civil or criminal actions related to AI systems for those alleged to have developed, modified, or deployed AI systems causing harm to a plaintiff.
- Definitions provided for key terms such as 'artificial intelligence system' and 'base artificial intelligence model'.
- Delayed effective date of July 1, 2027, for compliance.
- Disclosure does not absolve liability for harm caused.
Latest Legislative Action
Continued to next session in General Laws and Technology (14-Y 0-N 1-A)
Bill Sponsors
| Name | Role |
|---|---|
| Bill DeSteph R | Primary |
| Lionell Spruill, Sr. | Primary |
| Richard H. Stuart R | Primary |
| Siobhan S. Dunnavant | Primary |
| Stella G. Pekarsky D | Primary |
Roll Call Votes
Continued to next session in General Laws and Technology ·
Feb 4, 2026
14 Yea
0 Nay
1 Other
Passed ✓
Compliance Checklist
Provide required disclosures in terms of service for AI models
Who: Developers of base artificial intelligence models
Deadline: By July 1, 2027
Penalty: Potential liability for harm caused without proper disclosure
Who: Developers of base artificial intelligence models
Deadline: By July 1, 2027
Penalty: Potential liability for harm caused without proper disclosure
Contribute to the FAIR AI Enforcement Fund as required
Who: State agencies managing AI enforcement
Deadline: Ongoing as funds are appropriated
Penalty: Inability to enforce AI regulations effectively
Who: State agencies managing AI enforcement
Deadline: Ongoing as funds are appropriated
Penalty: Inability to enforce AI regulations effectively
Related & Companion Bills
Full Legal Analysis
The FAIR AI Act requires developers of base artificial intelligence models to provide clear and conspicuous disclosures in their terms of service. These disclosures must be easily accessible and appropriate for the medium of the content. The bill specifies certain elements that must be disclosed, including data usage, model limitations, and potential biases, which are critical for understanding compliance requirements. The Act also establishes the FAIR AI Enforcement Fund to support agency enforcement of AI system misuse, bias, and workforce disruption. Additionally, it limits the defenses available in legal actions specifically for those alleged to have developed, modified, or deployed AI systems causing harm to a plaintiff.
Official Source
Official Bill Text
View SB365 on official legislature website →
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