[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4749-S4751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2425. Mr. SCHATZ (for himself and Mr. Kennedy) submitted an 
amendment intended to be proposed by him to the bill S. 4638, to 
authorize appropriations for fiscal year 2025 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       In title X, after section 1094, insert the following:

                        Subtitle I--AI Labeling

     SEC. 1095. REQUIRED DISCLOSURES FOR COVERED AI-GENERATED 
                   CONTENT.

       (a) Requirements for Providers of Generative Artificial 
     Intelligence Systems That Produce Covered AI-generated 
     Content.--
       (1) In general.--Each provider of a generative artificial 
     intelligence system that, using any means or facility of 
     interstate or foreign commerce, produces covered AI-generated 
     content shall do the following:
       (A) Labeling.--The provider shall label the covered AI-
     generated content with a clear and conspicuous disclosure 
     that--
       (i) identifies that the output includes covered AI-
     generated content; and
       (ii) to the extent technically and economically feasible, 
     is accessible to individuals with disabilities.
       (B) Machine-readable disclosure.--
       (i) In general.--The provider shall bind or embed the 
     covered AI-generated content with a machine-readable 
     disclosure that--

       (I) identifies--

       (aa) the content that is covered AI-generated content;
       (bb) the system used to create or modify the content;
       (cc) the date and time the content was created or modified; 
     and
       (dd) any other relevant information;

       (II) to the extent technically and economically feasible, 
     is interoperable, indelible, tamper-resistant, and tamper-
     evident;
       (III) conforms to or is interoperable with a standard 
     specified by the National Institute of Standards and 
     Technology or by the Commission.

       (ii) Clarification.--The disclosure required under clause 
     (i) shall not be required to include the personally-
     identifiable information of the user of the generative 
     artificial intelligence system.
       (C) Detection.--To the extent technically and economically 
     feasible, the provider shall ensure that a user or covered 
     online platform can detect that the output generated by the 
     provider's generative artificial intelligence system includes 
     covered AI-generated content and view information required 
     under subparagraph (B) by--
       (i) ensuring that the covered AI-generated content is 
     detectable by a widely available detection tool and making 
     available to users or covered online platforms clear 
     instructions on how to access and operate this tool; or
       (ii) if no such detection tool exists, providing a tool to 
     users and covered online platforms to enable detection of 
     covered AI-generated content and providing clear instructions 
     on how to access and operate such tool.
       (D) Collaboration with covered online platforms.--The 
     provider shall collaborate with any covered online platform 
     to assist the covered online platform in complying with the 
     obligations described in subsection (b) with respect to any 
     content created or substantially modified by the generative 
     artificial intelligence system of the provider.
       (2) Exemption for internal use.--The requirements of this 
     subsection shall not apply to covered AI-generated content 
     produced by a provider of a generative artificial 
     intelligence system if the covered AI-generated content--
       (A) is generated or used solely for internal research and 
     development purposes; and
       (B) is not intended for public release or commercial 
     deployment.
       (b) Covered Online Platforms.--Each covered online platform 
     shall--
       (1) ensure that any covered AI-generated content displayed 
     on the platform that incorporates a machine-readable 
     disclosure described in subsection (a)(2) is clearly and 
     conspicuously identified as covered AI-generated content;
       (2) not remove any such disclosure, including when such 
     covered AI-generated content is transferred to or otherwise 
     shared to another online platform; and
       (3) to the extent technically and economically feasible--
       (A) ensure that any content displayed on the platform that 
     is not covered AI-generated content is not mislabeled as 
     covered AI-generated content;
       (B) provide to any user sharing content the option to make 
     content provenance information, that is attached to such 
     content using a trusted standard specified by the Commission, 
     readily available to other users of such platform; and
       (C) ensure that information contained in the identification 
     described in paragraph (1) or content provenance information 
     made available under subparagraph (B) is accessible to 
     individuals with disabilities.
       (c) Artificial Intelligence Chatbot Disclosure.--Each 
     person who, through any means or facility of interstate or 
     foreign commerce, makes available to users an artificial 
     intelligence chatbot shall include a clear and conspicuous 
     disclosure that identifies the system as an artificial 
     intelligence.
       (d) Enforcement by the Commission.--
       (1) Unfair or deceptive acts or practice.--A violation of 
     this section shall be treated as a violation of a rule 
     defining an unfair or deceptive act or practice under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (2) Powers of the commission.--
       (A) In general.--The Commission shall enforce this section 
     in the same manner, by the same means, and with the same 
     jurisdiction, powers, and duties as though all applicable 
     terms and provisions of the Federal Trade Commission Act (15 
     U.S.C. 41 et seq.) were incorporated into and made a part of 
     this section.
       (B) Privileges and immunities.--Any person who violates 
     this section or a regulation promulgated thereunder shall be 
     subject to the penalties and entitled to the privileges and 
     immunities provided in the Federal Trade Commission Act (15 
     U.S.C. 41 et seq.).
       (C) Authority preserved.--Nothing in this Act shall be 
     construed to limit the authority of the Commission under any 
     other provision of law.
       (D) Regulations and guidance.--
       (i) Authority to identify exceptions.--The Commission may 
     promulgate regulations in accordance with section 553 of 
     title 5, United States Code, to specify exceptions from the 
     requirements of this section, such as for de minimis pieces 
     of content.
       (ii) Establishment of specified safe harbors.--

       (I) In general.--The Commission may issue guidance to 
     specify interoperable standards that comply with the 
     requirements of this section.
       (II) Deemed compliance.--Each person who makes available a 
     generative artificial intelligence system or covered online 
     platform shall be deemed in compliance with the requirements 
     of this section by following the standards established by the 
     Commission under subclause (I).

     SEC. 1096. PROTECTION OF DISCLOSURES.

       (a) Prohibitions.--
       (1) Prohibition on subverting disclosure.--No person shall 
     knowingly circumvent, remove, or otherwise disable a 
     disclosure required under section 1095, except to the extent 
     that such action is necessary to prevent the dissemination or 
     publication of personally identifiable information of an 
     authorized creator of that covered AI-generated content.
       (2) Prohibition on fraudulent disclosure.--No person shall 
     knowingly and with the intent or substantial likelihood of 
     deceiving a third party, enable, facilitate, or

[[Page S4750]]

     conceal the circumvention of a disclosure required under 
     section 1095, by adding a disclosure, or other information 
     about the authenticity of covered AI-generated content, that 
     the person knows to be false.
       (3) Prohibition on fraudulent distribution.--No person 
     shall knowingly and for financial benefit, enable, 
     facilitate, or conceal the circumvention of a disclosure 
     required under section 1095 by knowingly distributing covered 
     AI-generated content without such disclosures required under 
     section 1095, or by knowingly distributing non-AI-generated 
     content with such disclosures.
       (4) Prohibition on products and services for 
     circumvention.--No person shall deliberately manufacture, 
     import, or offer to the public a technology, product, 
     service, device, component, or part thereof that--
       (A) is primarily designed or produced and promoted for the 
     purpose of circumventing, removing or tampering with the 
     disclosures required in section 1095, or for adding such 
     disclosures to non-AI-generated content, with the intent or 
     substantial likelihood of deceiving a third party about the 
     authenticity of a piece of digital content;
       (B) has only limited commercially significant or expressive 
     purpose or use other than to circumvent, remove or tamper 
     with the disclosures required in section 1095, or to add such 
     disclosures to non-AI-generated content, and is promoted for 
     such purposes; or
       (C) is marketed by that person or another acting in concert 
     with that person with that person's knowledge for use in 
     circumventing, removing or tampering with the disclosures 
     required in section 1095, or for use in adding such 
     disclosures to non-AI-generated content, with an intent to 
     deceive a third party about the authenticity of a piece of 
     digital content.
       (b) Exemptions.--
       (1) In general.--Nothing in subsection (a) shall inhibit 
     the ability of any individual to access, read, or review a 
     disclosure or to access, read, or review the content 
     provenance or other information contained therein.
       (2) Exemption for nonprofit libraries, archives, and 
     educational institutions.--
       (A) In general.--Except as otherwise provided in this 
     subsection, subsection (a) shall not apply to a nonprofit 
     library, archives, or educational institution which 
     generates, distributes, or otherwise handles covered AI-
     generated content.
       (B) Commercial advantage, financial gain, or tortious 
     conduct.--The exception in subparagraph (A) shall not apply 
     to a nonprofit library, archive, or educational institution 
     that willfully for the purpose of commercial advantage, 
     financial gain, or in furtherance of tortious conduct 
     violates a provision of subsection (a), except that a 
     nonprofit library, archive, or educational institution that 
     willfully for the purpose of commercial advantage, financial 
     gain, or in furtherance of tortious conduct violates a 
     provision of subsection (a) shall--
       (i) for the first offense, be subject to the civil remedies 
     under section 1097; and
       (ii) for repeated or subsequent offenses, in addition to 
     the civil remedies under section 1097, forfeit the exemption 
     provided under subparagraph (A).
       (C) Circumventing technologies.--This paragraph may not be 
     used as a defense to a claim under paragraph (3) of 
     subsection (a), nor may this subsection permit a nonprofit 
     library, archive, or educational institution to manufacture, 
     import, offer to the public, provide, or otherwise traffic in 
     any technology, product, service, component, or part thereof, 
     that circumvents a disclosure required under section 1095.
       (D) Qualifications of libraries and archives.--In order for 
     a library or archive to qualify for the exemption under 
     subparagraph (A), the collections of that library or archive 
     shall be--
       (i) open to the public; or
       (ii) available not only to researchers affiliated with the 
     library or archive or with the institution of which it is a 
     part, but also to other persons doing research in a 
     specialized field.
       (3) Reverse engineering.--An authorized user may 
     circumvent, remove, add, or tamper with disclosures required 
     in section 1095 for the purpose of improving or testing the 
     robustness of such disclosures, or for improving or testing 
     the robustness of detection tools.
       (4) Law enforcement, intelligence, and other government 
     activities.--Subsection (a) does not prohibit any lawfully 
     authorized investigative, protective, information security, 
     or intelligence activity of an officer, agent, or employee of 
     the United States, a State, or a political subdivision of a 
     State, or a person acting pursuant to a contract with the 
     United States, a State, or a political subdivision of a 
     State.

     SEC. 1097. ENFORCEMENT BY THE ATTORNEY GENERAL OF THE UNITED 
                   STATES.

       (a) Civil Action.--The Attorney General may bring a civil 
     action in an appropriate United States district court against 
     any person who violates section 1096(a).
       (b) Powers of the Court.--In an action brought under 
     subsection (a), the court--
       (1) may grant temporary and permanent injunctions on such 
     terms as it deems reasonable to prevent or restrain a 
     violation, but in no event shall impose a prior restraint on 
     free speech or the press protected under the First Amendment 
     to the Constitution of the United States;
       (2) at any time while an action is pending, may order the 
     impounding, on such terms as it deems reasonable, of any 
     device or product that is in the custody or control of the 
     alleged violator and that the court has reasonable cause to 
     believe was involved in a violation;
       (3) may award damages under subsection (c);
       (4) in its discretion may allow the recovery of costs 
     against any party other than the United States or an officer 
     thereof; and
       (5) may, as part of a final judgment or decree finding a 
     violation, order the remedial modification or the destruction 
     of any device or product involved in the violation that is in 
     the custody or control of the violator or has been impounded 
     under paragraph (2).
       (c) Award of Damages.--
       (1) In general.--Except as otherwise provided in this 
     section, a person committing a violation of section 1096(a) 
     is liable for statutory damages as provided in paragraph (2).
       (2) Statutory damages.--
       (A) Election of amount based on number of acts of 
     circumvention.--At any time before final judgment is entered, 
     the Attorney General may elect to recover an award of 
     statutory damages for each violation of section 1096(a) in 
     the sum of not more than $2,500 per act of circumvention, 
     device, product, component, offer, or performance of service, 
     as the court considers just.
       (B) Election of amount; total amount.--At any time before 
     final judgment is entered, the Attorney General may elect to 
     recover an award of statutory damages for each violation of 
     section 1096(a) in the sum of not more than $25,000.
       (3) Repeated violations.--In any case in which the Attorney 
     General sustains the burden of proving, and the court finds, 
     that a person has violated section 1096(a) within 3 years 
     after a final judgment was entered against the person for 
     another such violation, the court may increase the award of 
     damages up to triple the amount that would otherwise be 
     awarded, as the court considers just.
       (4) Innocent violations.--
       (A) In general.--The court in its discretion may reduce or 
     remit the total award of damages in any case in which the 
     court finds that the violator was not aware and had no reason 
     to believe that the violator's acts constituted a violation.
       (B) Nonprofit library, archive, educational institutions, 
     or public broadcasting entities.--In the case of a nonprofit 
     library, archive, educational institution, or public 
     broadcasting entity, the court shall remit damages in any 
     case in which the library, archive, educational institution, 
     or public broadcasting entity sustains the burden of proving, 
     and the court finds, that the library, archive, educational 
     institution, or public broadcasting entity was not aware and 
     had no reason to believe that its acts constituted a 
     violation.
       (5) Duplicative awards.--No compensatory damages may be 
     awarded under this section if compensatory damages have been 
     awarded under section 1098 or 1099.

     SEC. 1098. ENFORCEMENT BY STATES.

       (a) Civil Action.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or may be adversely 
     affected by a violation of section 1096, the attorney general 
     of the State may bring a civil action in the name of the 
     State, or as parens patriae on behalf of the residents of the 
     State, in an appropriate United States district court
       (b) Relief.--
       (1) In general.--In a civil action brought under subsection 
     (a), the court may award relief in accordance with section 
     1097(c).
       (2) Duplicative awards.--No compensatory damages may be 
     awarded under this section if compensatory damages have been 
     awarded under section 1097 or 1099.
       (c) Rights of the Attorney General of the United States and 
     the Commission.--
       (1) In general.--Except as provided in paragraph (4), the 
     attorney general of a State shall notify the Attorney General 
     of the United States and the Commission in writing prior to 
     initiating a civil action under subsection (a).
       (2) Contents.--The notification required by paragraph (1) 
     with respect to a civil action shall include a copy of the 
     complaint to be filed to initiate such action.
       (3) Intervention.--Upon receiving such notification, the 
     Attorney General may intervene in such action as a matter of 
     right pursuant to the Federal Rules of Civil Procedure.
       (4) Exception.--If it is not feasible for the attorney 
     general of a State to provide the notification provided by 
     subparagraph (1) before initiating a civil action under 
     subsection (a), the attorney general of the State shall 
     notify the Attorney General of the United States and the 
     Commission immediately upon instituting the civil action.
       (d) Actions by the Attorney General.--In any case in which 
     a civil action is instituted by the Attorney General of the 
     United States for a violation of this Act, no attorney 
     general of a State may, during the pendency of such action, 
     institute a civil action against any defendant named in the 
     complaint in the action instituted by or on behalf of the 
     Attorney General of the United States for a violation of this 
     Act that is alleged in such complaint.
       (e) Intervention by the Attorney General of the United 
     States.--The Attorney General of the United States may 
     intervene in any civil action brought by the attorney general 
     of a State under subsection (a), and upon intervening be 
     heard on all matters

[[Page S4751]]

     arising in the civil action and file petitions for appeal of 
     a decision in the civil action.
       (f) Investigatory Powers.--Nothing in this subsection may 
     be construed to prevent the attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of the State to conduct investigations, to 
     administer oaths or affirmations, or to compel the attendance 
     of witnesses or the production of documentary or other 
     evidence.
       (g) Actions by Other State Officials.--
       (1) In general.--In addition to civil actions brought by an 
     attorney general of a State under subsection (a), any other 
     officer of a State who is authorized by the State to do so 
     may bring a civil action in the same manner, subject to the 
     same requirements and limitations that apply under this 
     subsection to civil actions brought by an attorney general of 
     a State.
       (2) Savings provision.--Nothing in this subsection may be 
     construed to prohibit an authorized official of a State from 
     initiating or continuing any proceeding in a court of the 
     State for a violation of any civil or criminal law of the 
     State.

     SEC. 1099. ENFORCEMENT BY PRIVATE PARTIES.

       (a) Civil Action.--A provider of a generative artificial 
     intelligence system or covered online platform who is harmed 
     by a violation of section 1096 using their system or 
     platform, may bring a civil action against the violator in an 
     appropriate United States district court.
       (b) Relief.--
       (1) In general.--In a civil action brought under subsection 
     (a), the court may award relief in accordance with section 
     1097(c).
       (2) Duplicative awards.--No compensatory damages may be 
     awarded under this section if compensatory damages have been 
     awarded under section 1097 or 1098.
       (c) Rights of the Attorney General of the United States and 
     the Commission.--
       (1) In general.--The provider of a generative artificial 
     intelligence system or covered online platform shall notify 
     the Attorney General of the United States and the Commission 
     in writing prior to initiating a civil action under 
     subsection (a).
       (2) Contents.--The notification required by paragraph (1) 
     with respect to a civil action shall include a copy of the 
     complaint to be filed to initiate such action.
       (3) Intervention.--Upon receiving such notification, the 
     Attorney General may intervene in such action as a matter of 
     right pursuant to the Federal Rules of Civil Procedure.
       (d) Actions by the Attorney General.--In any case in which 
     a civil action is instituted by the Attorney General of the 
     United States for a violation of this Act, no provider of a 
     generative artificial intelligence system or covered online 
     platform may, during the pendency of such action, institute a 
     civil action against any defendant named in the complaint in 
     the action instituted by or on behalf of the Attorney General 
     of the United States for a violation of this Act that is 
     alleged in such complaint.
       (e) Intervention by the Attorney General of the United 
     States.--The Attorney General of the United States may 
     intervene in any civil action brought by a provider of a 
     generative artificial intelligence system or covered online 
     platform under subsection (a), and upon intervening be heard 
     on all matters arising in the civil action and file petitions 
     for appeal of a decision in the civil action.

     SEC. 1099A. AI-GENERATED CONTENT CONSUMER TRANSPARENCY 
                   WORKING GROUP.

       (1) Establishment.--Not later than 90 days after the date 
     of enactment of this section, the Director of the National 
     Institute of Standards and Technology (in this section 
     referred to as the ``Director''), in coordination with the 
     heads of other relevant Federal agencies, shall establish the 
     AI-generated content consumer transparency working group (in 
     this section referred to as the ``Working Group'').
       (2) Membership.--The Working Group shall include members 
     from the following:
       (A) Relevant Federal agencies.
       (B) Developers of any generative artificial intelligence 
     system.
       (C) Private sector groups engaged in the development of 
     content detection and content provenance standards, 
     audiovisual media formats, and open-source implementation of 
     such standards and formats.
       (D) Social media platforms and other covered online 
     platforms.
       (E) Academic institutions and other relevant entities.
       (F) Privacy advocates and experts.
       (G) Media organizations, including news publishers and 
     image providers.
       (H) Technical experts in digital forensics, cryptography, 
     and secure digital content and delivery.
       (I) Groups or individuals representing victims affected by 
     covered AI-generated content.
       (J) Any other entity determined appropriate by the 
     Director.
       (3) Duties.--The duties of the Working Group shall include 
     the following:
       (A) Assisting covered online platforms in identifying and 
     labeling covered AI-generated content, including by 
     considering interoperable standards that assist with 
     identifying, maintaining, interpreting, and displaying 
     labeling information, and establishing guidelines and best 
     practices for covered online platforms to implement such 
     standards.
       (B) Supporting the development of technical specifications 
     and guidelines to--
       (i) provide labeling and content provenance information; 
     and
       (ii) make such information interoperable, indelible, 
     tamper-resistant, and tamper-evident to improve accuracy and 
     ease of identification.
       (C) Supporting the development of guidelines regarding the 
     detection of covered AI-generated content and best practices 
     to address circumvention techniques and improve enforcement 
     of the requirements of this Act.
       (D) Providing the Commission with recommendations regarding 
     technical and economic feasibility with respect to the 
     requirements of this Act.
       (E) Developing recommendations for content detection and 
     secure content provenance practices for any content that is 
     produced by a generative artificial intelligence system and 
     is not covered under the requirements of this Act, including 
     text.
       (F) Developing research and evidence regarding--
       (i) the impact of covered AI-generated content and required 
     disclosures on consumer behavior; and
       (ii) how standards and guidelines can contribute to an 
     information environment that is transparent and not 
     overwhelming for consumers.
       (4) Framework.--Not later than 2 years after the date on 
     which the Director establishes the Working Group under 
     paragraph (1), the Working Group shall publish a framework 
     that includes technical specifications, guidelines, and 
     recommendations regarding the criteria described in paragraph 
     (3).
       (5) Report to congress.--Not later than 180 days after the 
     Working Group publishes the framework under paragraph (4), 
     the Director shall submit to the Committee on Commerce, 
     Science, and Transportation of the Senate, the Committee on 
     Energy and Commerce of the House of Representatives, and the 
     Committee on Science, Space, and Technology of the House of 
     Representatives a report on such framework, together with 
     recommendations for legislative or administrative action 
     determined appropriate by the Director.
       (6) Sunset.--The working group shall terminate on the date 
     on which the Director submits the report required by 
     paragraph (5).

     SEC. 1099B. DEFINITIONS.

       In this Act:
       (1) Artificial intelligence chatbot.--The term ``artificial 
     intelligence chatbot'' means a generative artificial 
     intelligence system with which users can interact by or 
     through an interface that approximates or simulates 
     conversation, including a system that--
       (A) through an application programming interface, or 
     similar direct connection, publicly posts content; or
       (B) bundles responses generated by artificial intelligence 
     with other results, such as in a search query.
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Content provenance.--The term ``content provenance'' 
     means the chronology of the origin, modifications, and other 
     information associated with the history of digital content.
       (4) Covered ai-generated content.--The term ``covered AI-
     generated content'' means any sufficiently realistic image, 
     video, audio, or multimedia content that is created or 
     substantially modified by a generative artificial 
     intelligence system such that--
       (A) the use of the system materially alters the meaning or 
     significance that a reasonable person would interpret from 
     the content; and
       (B) a reasonable person would believe that the content is 
     not generated using a generative artificial intelligence 
     system.
       (5) Covered online platform.--The term ``covered online 
     platform'' means any public-facing website, online service, 
     online application, or mobile application available to users 
     that predominantly provides a forum for the sharing or 
     searching of content (including covered AI-generated 
     content), including a social media service, social network, 
     search engine, or content aggregation service available to 
     users.
       (6) Generative artificial intelligence system.--The term 
     ``generative artificial intelligence system'' means any 
     system or software application that uses artificial 
     intelligence (as defined in section 238(g) of the John S. 
     McCain National Defense Authorization Act for Fiscal Year 
     2019) to create or substantially modify image, video, audio, 
     or multimedia content.
       (7) Machine-readable.--The term ``machine-readable'' has 
     the meaning given such term in section 3502 of title 44, 
     United States Code.
       (8) Multimedia.--
       (A) In general.--The term ``multimedia'' means a 
     combination of video, audio, photo, graphics, animation, or 
     other content.
       (B) Clarification.--For purposes of subparagraph (A), 
     content is not considered multimedia content solely on the 
     basis of combining content with software in a website or 
     other form.
       (9) Non-AI-generated content.--The term ``non-AI-generated 
     content'' means content that was not created or substantially 
     modified by a generative artificial intelligence system.
                                 ______