On November 20, 2024, the Federal Communications Commission (the “Commission”) issued a Second Report and Order in which it adopted rules (“the Order”) to facilitate the transition to from Dedicated Short Range Communications (“DSRC”) technology to Cellular-Vehicle-to-Everything (“C-V2X”) technology for the Intelligent Transportation System (“ITS” also referred to as the
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U.S. Tech Legislative, Regulatory & Litigation Update – Third Quarter 2024
This quarterly update highlights key legislative, regulatory, and litigation developments in the third quarter of 2024 related to artificial intelligence (“AI”) and connected and automated vehicles (“CAVs”). As noted below, some of these developments provide industry with the opportunity for participation and comment.
I. Artificial Intelligence
Federal Legislative Developments
There continued to be strong bipartisan interest in passing federal legislation related to AI. While it has been challenging to pass legislation through this Congress, there remains the possibility that one or more of the more targeted bills that have bipartisan support and Committee approval could advance during the lame duck period.
- Senate Commerce, Science, and Transportation Committee: Lawmakers in the Senate Commerce, Science, and Transportation Committee moved forward with nearly a dozen AI-related bills, including legislation focused on developing voluntary technical guidelines for AI systems and establishing AI testing and risk assessment frameworks.
- In July, the Committee voted to advance the Validation and Evaluation for Trustworthy (VET) Artificial Intelligence Act (S.4769), which was introduced by Senators John Hickenlooper (D-CO) and Shelley Moore Capito (R-WV). The Act would require the National Institute of Standards and Technology (“NIST”) to develop voluntary guidelines and specifications for internal and external assurances of AI systems, in collaboration with public and private sector organizations.
- In August, the Promoting United States Leadership in Standards Act of 2024 (S.3849) was placed on the Senate legislative calendar after advancing out of the Committee in July. Introduced in February 2024 by Senators Mark Warner (D-VA) and Marsha Blackburn (R-TN), the Act would require NIST to support U.S. involvement in the development of AI technical standards through briefings, pilot programs, and other activities.
- In July, the Future of Artificial Intelligence Innovation Act of 2024 (S.4178)— introduced in April by Senators Maria Cantwell (D-CA), Todd Young (R-IN), John Hickenlooper (D-CO), and Marsha Blackburn (R-TN)—was ordered to be reported out of the Committee and gained three additional co-sponsors: Senators Roger F. Wicker (R-MS), Ben Ray Lujan (D-NM), and Kyrsten Sinema (I-AZ). The Act would codify the AI Safety Institute, which would be required to develop voluntary guidelines and standards for promoting AI innovation through public-private partnerships and international alliances.
- In July, the Artificial Intelligence Research, Innovation, and Accountability Act of 2023 (S.3312), passed out of the Committee, as amended. Introduced in November 2023 by Senators John Thune (R-SD), Amy Klobuchar (D-MN), Roger Wicker (R-MS), John Hickenlooper (D-CO), Ben Ray Lujan (D-NM), and Shelley Moore Capito (R-WV), the Act would establish a comprehensive regulatory framework for “high-impact” AI systems, including testing and evaluation standards, risk assessment requirements, and transparency report requirements. The Act would also require NIST to develop sector-specific recommendations for agency oversight of high-impact AI, and to research and develop means for distinguishing between content created by humans and AI systems.
- Senate Homeland Security and Governmental Affairs Committee: In July, the Senate Homeland Security Committee voted to advance the PREPARED for AI Act (S.4495). Introduced in June by Senators Gary Peters (D-MI) and Thomas Tillis (R-NC), the Act would establish a risk-based framework for the procurement and use of AI by federal agencies and create a Chief AI Officers Council and agency AI Governance Board to ensure that federal agencies benefit from advancements in AI.
- National Defense Authorization Act for Fiscal Year 2025: In August, Senators Gary Peters (D-MI) and Mike Braun (R-IN) proposed an amendment (S.Amdt.3232) to the National Defense Authorization Act for Fiscal Year 2025 (S.4638) (“NDAA”). The amendment would add the Transparent Automated Governance Act and the AI Leadership Training Act to the NDAA. The Transparent Automated Governance Act would require the Office of Management and Budget (“OMB”) to issue guidance to agencies to implement transparency practices relating to the use of AI and other automated systems. The AI Leadership Training Act would require OMB to establish a training program for federal procurement officials on the operational benefits and privacy risks of AI. The Act would also require the Office of Personnel Management (“OPM”) to establish a training program on AI for federal management officials and supervisors.
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Bills to Regulate Sports Betting Introduced in Senate and House
Updated October 1, 2024. Originally posted September 19, 2024.
Last month, far-reaching proposals to regulate sports betting were introduced in the U.S. Senate and the House of Representatives by Senator Richard Blumenthal and Representative Paul Tonko which mark “the first comprehensive legislation that would address the public health implications inherent in the widespread legalization of sports betting.” The bills, called the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, would establish a broad federal scheme imposed on State gambling authorities to limit sports betting advertising, address problem gambling, and focus on other “public safety” measures.
The SAFE Bet Act would establish a general nationwide prohibition on sports betting with an exception for States that receive approval from the Department of Justice (DOJ) to operate a sports betting program consistent with the requirements of the proposed legislation. DOJ approval of a State’s application would be valid for three years and would be renewable. To receive approval, a State would have to show that it meets minimum federal standards related to sports betting advertising, controls on customer deposits, general consumer-protection requirements, and the use of artificial intelligence (AI) by sports betting operators. The following is a high-level summary of the key standards.
Advertising Limits. The bills’ advertising standards include prohibitions on broadcast advertising between 8 AM and 10 PM (local time) and during live sports events. Also, advertisements could not utilize common promotional mechanisms such as “bonus,” “no sweat,” or similar offers. Advertisements also could not instruct the audience how to gamble or explain how wagers work.Continue Reading Bills to Regulate Sports Betting Introduced in Senate and House
Bills to Regulate Sports Betting Introduced in Senate and House
Over the past few days, far-reaching proposals to regulate sports betting were introduced in the U.S. Senate and the House of Representatives by Senator Richard Blumenthal and Representative Paul Tonko which mark “the first comprehensive legislation that would address the public health implications inherent in the widespread legalization of sports
Continue Reading Bills to Regulate Sports Betting Introduced in Senate and HouseFCC Adopts Order Establishing Voluntary IoT Labeling Program
On July 30, 2024, the Federal Register published the Federal Communications Commission (the “FCC”) Report and Order (the “Order”) creating a voluntary cybersecurity labeling program for Internet of Things (“IoT”) devices. As reported in our blog post issued shortly before the Order was approved on March 14, 2024, this program
Continue Reading FCC Adopts Order Establishing Voluntary IoT Labeling ProgramFCC Approves Rule Change Revolutionizing Radio Industry
On April 2, 2024, the FCC released a Report and Order (the “Order”) and Further Notice of Proposed Rulemaking (the “Further Notice”) approving a rule change on a bipartisan, unanimous basis to allow radio broadcasters to use FM boosters to direct hyper-local programming for a portion of each hour at
Continue Reading FCC Approves Rule Change Revolutionizing Radio IndustryNew Jersey and New Hampshire Pass Comprehensive Privacy Legislation
New Jersey and New Hampshire are the latest states to pass comprehensive privacy legislation, joining California, Virginia, Colorado, Connecticut, Utah, Iowa, Indiana, Tennessee, Montana, Oregon, Texas, Florida, and Delaware. Below is a summary of key takeaways.
New Jersey
On January 8, 2024, the New Jersey state senate passed S.B. 332 (“the Act”), which was signed into law on January 16, 2024. The Act, which takes effect 365 days after enactment, resembles the comprehensive privacy statutes in Connecticut, Colorado, Montana, and Oregon, though there are some notable distinctions.
- Scope and Applicability: The Act will apply to controllers that conduct business or produce products or services in New Jersey, and, during a calendar year, control or process either (1) the personal data of at least 100,000 consumers, excluding personal data processed for the sole purpose of completing a transaction; or (2) the personal data of at least 25,000 consumers where the business derives revenue, or receives a discount on the price of any goods or services, from the sale of personal data. The Act omits several exemptions present in other state comprehensive privacy laws, including exemptions for nonprofit organizations and information covered by the Family Educational Rights and Privacy Act.
- Consumer Rights: Consumers will have the rights of access, deletion, portability, and correction under the Act. Moreover, the Act will provide consumers with the right to opt out of targeted advertising, the sale of personal data, and profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer. The Act will require controllers to develop a universal opt out mechanism by which consumers can exercise these opt out rights within six months of the Act’s effective date.
- Sensitive Data: The Act will require consent prior to the collection of sensitive data. “Sensitive data” is defined to include, among other things, racial or ethnic origin, religious beliefs, mental or physical health condition, sex life or sexual orientation, citizenship or immigration status, status as transgender or non-binary, and genetic or biometric data. Notably, the Act is the first comprehensive privacy statute other than the California Consumer Privacy Act to include financial information in its definition of sensitive data. The Act defines financial information as an “account number, account log-in, financial account, or credit or debit card number, in combination with any required security code, access code, or password that would permit access to a consumer’s financial account.”
- Opt-In Consent for Certain Processing of Personal Data Concerning Teens: Unless a controller obtains a consumer’s consent, the Act will prohibit the controller from processing personal data for targeted adverting, sale, or profiling where the controller has actual knowledge, or willfully disregards, that the consumer is between the ages of 13 and 16 years old.
- Enforcement and Rulemaking: The Act grants the New Jersey Attorney General enforcement authority. The Act also provides controllers with a 30-day right to cure for certain violations, which will sunset eighteen months after the Act’s effective date. Like the comprehensive privacy laws in California and Colorado, the Act authorizes rulemaking under the state Administrative Procedure Act. Specifically, the Act requires the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to promulgate rules and regulations pursuant to the Administrative Procedure Act that are necessary to effectuate the Act’s provisions.
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