Virginia · Senate Bill · 2026 Session
SB365
Virginia SB 365 — Fostering Access, Innovation, and Responsibility in Artificial Intelligence Act (FAIR AI Act)

Status ● Introduced Effective Jul 1, 2027 Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
The Attorney General controls expenditures from the FAIR AI Enforcement Fund, which supports state agency enforcement of AI system misuse, bias, and workforce disruption. The bill does not create a private right of action or specify a complaint-driven mechanism. Enforcement appears agency-initiated through the Attorney General's office.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify monetary penalties, statutory damages, injunctive relief, or attorney's fees. The FAIR AI Enforcement Fund is created to support state agency enforcement but no specific remedies are enumerated. Sections 59.1-615(B) and 59.1-617 address liability defenses but do not create new causes of action or specify remedies.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Va. Code § 59.1-614
Definitions

As used in this chapter, unless the context requires a different meaning: "Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614" means any machine learningMachine learning"Machine learning" means the development of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction.Va. Code § 59.1-614-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614" does not include any artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 or base artificial intelligence modelBase artificial intelligence model"Base artificial intelligence model" means a large-scale artificial intelligence system model trained on broad and diverse data to learn general patterns and relationships, serving as a foundational platform adaptable for various specific tasks or applications.Va. Code § 59.1-614 that is used for development, prototyping, and research activities before such artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 or base artificial intelligence modelBase artificial intelligence model"Base artificial intelligence model" means a large-scale artificial intelligence system model trained on broad and diverse data to learn general patterns and relationships, serving as a foundational platform adaptable for various specific tasks or applications.Va. Code § 59.1-614 is made available to deployersDeployer"Deployer" means any person doing business in the Commonwealth that deploys or uses an artificial intelligence system to make a consequential decision in the Commonwealth.Va. Code § 59.1-614 or consumers. "Base artificial intelligence modelBase artificial intelligence model"Base artificial intelligence model" means a large-scale artificial intelligence system model trained on broad and diverse data to learn general patterns and relationships, serving as a foundational platform adaptable for various specific tasks or applications.Va. Code § 59.1-614" means a large-scale artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 model trained on broad and diverse data to learn general patterns and relationships, serving as a foundational platform adaptable for various specific tasks or applications. "DeployerDeployer"Deployer" means any person doing business in the Commonwealth that deploys or uses an artificial intelligence system to make a consequential decision in the Commonwealth.Va. Code § 59.1-614" means any person doing business in the Commonwealth that deploys or uses an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 to make a consequential decision in the Commonwealth. "DeveloperDeveloper"Developer" means any person doing business in the Commonwealth that develops or modifies an artificial intelligence system that is offered, sold, leased, given, or otherwise made available to deployers or consumers in the Commonwealth.Va. Code § 59.1-614" means any person doing business in the Commonwealth that develops or modifies an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 that is offered, sold, leased, given, or otherwise made available to deployersDeployer"Deployer" means any person doing business in the Commonwealth that deploys or uses an artificial intelligence system to make a consequential decision in the Commonwealth.Va. Code § 59.1-614 or consumers in the Commonwealth. "FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614" means the FAIR AI Enforcement FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 created in § 59.1-616. "Machine learningMachine learning"Machine learning" means the development of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction.Va. Code § 59.1-614" means the development of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction. "MisuseMisuse"Misuse" means the use of an artificial intelligence system to engage in unlawful activities that result in harm to any person.Va. Code § 59.1-614" means the use of an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 to engage in unlawful activities that result in harm to any person.

This section establishes the definitional framework for the FAIR AI Act. The definitions of Developer and Deployer are both scoped to persons doing business in the Commonwealth. The Artificial intelligence system definition is broad — covering any machine learning-based system that generates outputs including content, decisions, predictions, and recommendations — but expressly carves out systems used solely for development, prototyping, and research before being made available to deployers or consumers. Base artificial intelligence model captures large-scale foundation models trained on broad data, which is the entity type targeted by the disclosure obligation in § 59.1-615.

Va. Code § 59.1-615
Duty to disclose
Developer

(A) 1 A developer of a base artificial intelligence modelBase artificial intelligence model"Base artificial intelligence model" means a large-scale artificial intelligence system model trained on broad and diverse data to learn general patterns and relationships, serving as a foundational platform adaptable for various specific tasks or applications.Va. Code § 59.1-614 shall 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: 1. The name of the model; 2. The developer of the model; 3. The location where the developerDeveloper"Developer" means any person doing business in the Commonwealth that develops or modifies an artificial intelligence system that is offered, sold, leased, given, or otherwise made available to deployers or consumers in the Commonwealth.Va. Code § 59.1-614 is incorporated; 4. The release date of the most recent version of the model; 5. The date that the model's training data was most recently updated; 6. Supported languages for the model; and 7. A link to the model's terms of service.

(B) The provision of such disclosure to a user shall not be a defense to liability for any harm caused to a plaintiff.

This section imposes the bill's sole affirmative compliance obligation: developers of base artificial intelligence models must disclose seven enumerated items of model metadata in the terms of service governing use of the model. The required disclosures cover model identity (name, developer, incorporation location), recency (release date of most recent version, date training data was last updated), capabilities (supported languages), and governance (link to terms of service). Disclosure must be clear, conspicuous, appropriate for the medium, and easily accessible to the user.

Subsection B clarifies that making the required disclosure does not shield a developer from liability for harm caused to a plaintiff — the disclosure is a compliance floor, not a liability shield.

Compliance actions 1 item
1
Developers of base AI models must clearly and conspicuously disclose in the model's terms of service: (1) the model name, (2) the developerDeveloper"Developer" means any person doing business in the Commonwealth that develops or modifies an artificial intelligence system that is offered, sold, leased, given, or otherwise made available to deployers or consumers in the Commonwealth.Va. Code § 59.1-614, (3) the developerDeveloper"Developer" means any person doing business in the Commonwealth that develops or modifies an artificial intelligence system that is offered, sold, leased, given, or otherwise made available to deployers or consumers in the Commonwealth.Va. Code § 59.1-614's incorporation location, (4) the release date of the most recent version, (5) the date training data was most recently updated, (6) supported languages, and (7) a link to the terms of service.
G-02.1
Va. Code § 59.1-616
FAIR AI Enforcement Fund

There is hereby created in the state treasury a special nonreverting fundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 to be known as the FAIR AI Enforcement FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614. The FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 shall be established on the books of the Comptroller. All fundsFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 appropriated for such purpose shall be paid into the state treasury and credited to the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614. Interest earned on moneys in the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 shall remain in the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 and be credited to it. Any moneys remaining in the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614, including interest thereon, at the end of each fiscal year shall not revert to the general fundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 but shall remain in the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614. Moneys in the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 shall be used solely for the purpose of supporting state agency enforcement of artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 misuseMisuse"Misuse" means the use of an artificial intelligence system to engage in unlawful activities that result in harm to any person.Va. Code § 59.1-614, bias, and workforce disruption. Expenditures and disbursements from the FundFund"Fund" means the FAIR AI Enforcement Fund created in § 59.1-616.Va. Code § 59.1-614 shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Attorney General.

This section creates the FAIR AI Enforcement Fund as a special nonreverting fund in the state treasury. The fund is designated solely for supporting state agency enforcement against AI system misuse, bias, and workforce disruption. Expenditures require a written request signed by the Attorney General, positioning the AG as the gatekeeper for enforcement spending. The provision establishes an institutional enforcement infrastructure but does not impose any compliance obligation on developers or deployers.

Va. Code § 59.1-617
Defenses

(A) 2 In any criminal or civil action against a defendant that is alleged to have developed or modified an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 that caused harm to a plaintiff, it shall not be a defense that the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 autonomously caused such harm to the plaintiff.

(B) 3 In any criminal or civil action against a defendant that is alleged to have deployed or otherwise used an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614 that caused harm to a plaintiff, it shall not be a defense that the alleged harm was caused by the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means any machine learning-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including content, decisions, predictions, and recommendations, that can influence physical or virtual environments. "Artificial intelligence system" does not include any artificial intelligence system or base artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence system or base artificial intelligence model is made available to deployers or consumers.Va. Code § 59.1-614.

(C) Nothing in this section shall prevent a defendant from asserting existing available defenses at common law, including that the harm to a plaintiff was caused by the intervening or superseding conduct of another individual.

This section eliminates two AI-specific liability defenses. For developers, it bars the defense that the AI system autonomously caused harm — a developer cannot disclaim responsibility by arguing that the system acted independently once deployed. For deployers, it bars the defense that the harm was caused by the AI system itself rather than by the deployer's own conduct. The savings clause in subsection C preserves existing common-law defenses, including intervening or superseding causation by another individual. These provisions modify the liability landscape but do not create new affirmative compliance obligations.

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party (No data)
Bipartisan No
Prior session None

Legislative History

2026-01-13 Prefiled and ordered printed; Offered 01-14-2026 26104938D
2026-01-13 Referred to Committee on General Laws and Technology
2026-02-04 Senate committee amendments offered
2026-02-04 Continued to next session in General Laws and Technology (14-Y 0-N 1-A)

Entry Last Reviewed

2026-05-20
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