Proposed State AI Law Update: February 16, 2026
This document outlines the latest developments in state AI legislation for 2026, focusing on bills that may impact private-sector AI developers and deployers. Notably, it excludes discussions about government use of AI, insurance, education, and related topics.
Key Developments
2026 is emerging as a pivotal year for chatbot bills. Recent advancements include:
- Chatbot bills passing in the Virginia and Washington Senates.
- Advancements in committees across Utah, Arizona, and Hawaii.
- Introduction of new bills in six states.
Disclosure and Provenance Bills
In Washington, HB 1170 has passed, mandating that providers offer a provenance detection tool and include manifest and latent disclosures in certain GenAI content. This legislation is rooted in California’s AI Transparency Act.
Utah’s HB 276 has also passed out of committee, establishing the Digital Content Provenance Standards Act.
AI Transparency Act Controversy
Utah’s HB 286 has attracted scrutiny from the Trump administration, which expressed concerns that it contradicts their AI agenda. This bill emphasizes child safety by requiring chatbot developers to publish a child protection plan.
Health-Related AI Bill
The Tennessee Senate has passed a bill prohibiting the development or deployment of AI systems claiming to act as qualified mental health professionals.
New Legislative Proposals
Lawmakers have filed numerous new bills, including five related to pricing, four concerning employment, and two focused on health.
High-Risk AI Regulations
Legislation in high-risk areas, such as financial services and healthcare, is being closely monitored. In Washington, HB 2157 has been placed on second reading, while in New Hampshire, HB 1725 was deemed inexpedient to legislate.
Chatbot Legislation Momentum
Several chatbot-related bills are gaining traction:
- Washington’s SB 5984 for companion chatbots has passed.
- Virginia’s SB 796 is awaiting a floor vote.
- Utah’s HB 438 has advanced to floor votes.
- Arizona’s HB 2311 is also moving forward.
Pricing Regulations
Several states are considering bills that regulate AI-related pricing:
- Iowa’s SF 2278 prohibits personalized algorithmic pricing in food retail.
- Rhode Island’s H 7764 bans algorithmic pricing by landlords.
- Utah’s SB 293 addresses consumer pricing.
Disclosure Requirements
Washington’s HB 1170 requires transparency in AI content generation, while California’s SB 1000 aims to amend existing transparency legislation.
Employment and AI
In the employment sector, various bills are being proposed to regulate AI’s role in hiring and workplace practices:
- Virginia’s HB 1514 faced a subcommittee recommendation to lay it on the table.
- California is considering AB 1883 and AB 1898 related to workplace AI tools.
Health Care AI Regulations
Several health-related bills are progressing:
- Tennessee’s SB 1580 prohibits misleading AI representations in mental health.
- Colorado’s HB 1195 regulates AI use in psychotherapy.
Personhood and AI Rights
Oklahoma’s HB 3546 has passed, establishing that AI cannot be granted legal personhood under state law.
Child Safety and Data Privacy
Maryland legislators are considering bills to enhance child safety in toys featuring AI and to regulate consumer reporting agencies utilizing algorithmic systems.
