Franklin Square Group Tech Weekly - September 9, 2024

States Step In On AI Legislation: AI continues to dominate the policy debate, both at the federal and state levels. Sen. Mike Rounds (R-SD) issued a new legislative package of AI bills and defense appropriations amendments for consideration. Whether the Senate will consider the package before the end of the year remains to be seen, but now is the time Members will begin to try to work their priorities into larger vehicles such as the NDAA. California’s sweeping AI bill took center stage over August as SB 1047 made its way to Gov. Newsom’s desk for signature. The bill provides the most comprehensive AI framework to date, and aims to hold tech companies accountable for any potential harms its AI frontier models may cause. While it's unclear if Newsom will sign the bill into law with significant opposition from Members and industry alike, the bill demonstrates a restlessness within the states for federal action on AI. 

The Future of Kids’ Online Safety Bills: Washington is hoping for a clearer picture of kids’ online safety bills as Members return to session, but with just three weeks of session this month, industry is questioning if it can be done. The senate passed the Kids Onlines Safety and Protection Act (KOSPA) before August recess. The House now has to decide if it will take up the Senate-passed version or stick with its own version of the bill, which has yet to pass out of the House Energy and Commerce Committee. Republicans have already voiced opposition to passing the Senate bill, including House Majority Leader Scalise. There is also the lesser chance that E&C Chair McMorris Rodgers will take another run at passing the American Privacy Rights Act (APRA), which includes controversial language to update the Childrens’ Online Privacy Protection Act (COPPA), garnered strong opposition right before it was scheduled to be marked up in July. 

What China Bills Mean for Tech: The House this week is teed up to pass dozens of China-related legislation, much of which could have implications for tech. Several of the bills also pertain to telecommunications concerns around cybersecurity vulnerabilities. The agenda includes H.R.5245, the Science and Technology Agreement Enhanced Congressional Notification Act, which prohibits the U.S. from renewing any S&T agreements with China without congressional review. The House will also vote on legislation that would allow for expedited timing of additions and removals from the Commerce Entity List for export controls, including chips and other tech capabilities. The list also includes bills targeted at securing elections from foreign adversaries, which is a priority for both the House and Senate with just 57 days before the election.