Bill > S735

This bill establishes the North Carolina Artificial Intelligence Innovation Trust Fund, a special fund administered by the Secretary of Commerce to provide grants and support AI entrepreneurship programs while implementing comprehensive oversight and safety regulations for AI model development. The bill creates detailed requirements for developers of "covered models" (AI systems meeting specific computational and risk thresholds), mandating they implement robust safety and security protocols, conduct annual risk assessments, report potential safety incidents, and take reasonable precautions to prevent critical harms. Developers must create written protocols addressing cybersecurity, potential misuse, and risk mitigation, and submit annual compliance statements to the Attorney General. The bill also requires computing resource operators to verify customer identities and maintain logs when providing computational resources for AI model training. Enforcement mechanisms include civil penalties up to 15% of model training costs, with the Attorney General empowered to investigate and take legal action against non-compliant developers. The legislation aims to balance innovation with responsible AI development by establishing a framework that encourages technological advancement while mitigating potential risks to public safety, individual rights, and critical infrastructure. The bill is accompanied by an initial appropriation of $750,000 and will become effective on July 1, 2025.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S735