[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3423-S3426]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6267. Mr. SCHATZ (for himself and Mr. Curtis) submitted an
amendment intended to be proposed by him to the bill S. 4784, to
authorize appropriations for fiscal year 2027 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
[[Page S3424]]
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place in subtitle G of title X, insert
the following:
SEC. ___. AI LABELING.
(a) Required Disclosures for Covered AI-generated
Content.--
(1) Requirements for providers of generative artificial
intelligence systems that produce covered ai-generated
content.--
(A) 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:
(i) 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;
(II) to the extent technically and economically feasible,
is accessible to individuals with disabilities; and
(III) is embedded in the content.
(ii) Machine-readable disclosure.--
(I) In general.--The provider shall bind or embed within
the covered AI-generated content a machine-readable
disclosure that, at a minimum--
(aa) identifies--
(AA) the content that is covered AI-generated content;
(BB) the system and the version used to create or modify
the covered AI-generated content;
(CC) the date and time the covered AI-generated content was
created or modified; and
(DD) any other relevant information; and
(bb) conforms to or is interoperable with the standards
specified by the Commission and the Working Group established
under subsection (f).
(II) Clarification.--The disclosure required under
subclause (I) shall not be required to include the
personally-identifiable information of the user of the
generative artificial intelligence system.
(iii) Detection.--The provider shall ensure that a user or
covered online platform can detect, without undue financial
burden, that the output generated by the provider's
generative artificial intelligence system includes covered
AI-generated content and view information required under
clause (ii) by--
(I) ensuring that the covered AI-generated content is
detectable by one or more widely available detection tools
and making available to users or covered online platforms
clear instructions on how to access and operate such tools;
or
(II) if no such detection tool exists, providing to users
and covered online platforms access to a tool to enable
detection of covered AI-generated content and providing clear
instructions on how to access and operate such tool.
(iv) 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 paragraph (2) with respect to any
content created or substantially modified by the generative
artificial intelligence system of the provider.
(B) Exemption for internal use.--The requirements of this
paragraph shall not apply to covered AI-generated content
produced by a provider of a generative artificial
intelligence system if the covered AI-generated content--
(i) is generated or used solely for internal research and
development purposes; and
(ii) is not intended for public release or commercial
deployment.
(2) Covered online platforms.--Each covered online platform
shall--
(A) ensure that any covered AI-generated content displayed
on the platform that incorporates a machine-readable
disclosure described in paragraph (1)(A)(ii) is clearly and
conspicuously identified as covered AI-generated content;
(B) not tamper with or remove any such disclosure,
including when such covered AI-generated content is
transferred to or otherwise shared to another online
platform;
(C) provide to any user sharing content the option to make
content provenance information specified in paragraph
(1)(A)(ii)(I)(aa), as well as any additional user-specified
content provenance information, readily available to other
users of such platform;
(D) make a good faith effort to combat the liar's dividend
by implementing strategies recommended by the Commission; and
(E) to the extent technically and economically feasible,
ensure that information contained in the identification
described in subparagraph (A) or content provenance
information made available under subparagraph (C) is
accessible, including to individuals with disabilities.
(3) 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 chatbot.
(4) Enforcement by the commission.--
(A) Unfair or deceptive acts or practices.--A violation of
this subsection 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)).
(B) Powers of the commission.--
(i) In general.--The Commission shall enforce this
subsection 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 subsection.
(ii) Privileges and immunities.--Any person who violates
this subsection 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.).
(iii) Authority preserved.--Nothing in this section shall
be construed to limit the authority of the Commission under
any other provision of law.
(iv) 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 subsection, such as for de minimis
pieces of content.
(II) Establishment of specified safe harbors.--
(aa) In general.--The Commission may specify interoperable
standards that comply with the requirements of this
subsection.
(bb) 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 subsection by following the standards established by
the Commission under item (aa).
(b) Protection of Disclosures.--
(1) Prohibitions.--
(A) Prohibition on fraudulent disclosure.--No person shall
knowingly and with the intent or substantial likelihood of
deceiving a third party, enable, facilitate, or conceal the
circumvention or falsification of a disclosure required under
subsection (a), by adding a disclosure, or other information
about the provenance of covered AI-generated content, that
the person knows to be false.
(B) Prohibition on fraudulent distribution.--No person
shall knowingly and for financial benefit, enable,
facilitate, or conceal the circumvention or falsification of
a disclosure required under subsection (a) by knowingly
distributing--
(i) covered AI-generated content that does not include the
required disclosure; or
(ii) non-AI-generated content that includes such
disclosure.
(C) Prohibition on products and services for circumvention
or falsification.--No person shall deliberately manufacture,
import, or offer to the public a technology, product,
service, device, component, or part thereof that--
(i) is primarily designed or produced and promoted for the
purpose of circumventing, removing, or tampering with any
disclosure required under subsection (a), or for adding any
such disclosure to non-AI-generated content, with the intent
or substantial likelihood of deceiving a third party about
the provenance of a piece of digital content;
(ii) has only limited commercially significant or
expressive purpose or use other than to circumvent, remove,
or tamper with a disclosure required under subsection (a), or
to add any such disclosure to non-AI-generated content, and
is promoted for such purposes; or
(iii) is marketed by such person or another person acting
in concert with such person with the person's knowledge for
use in circumventing, removing, or tampering with a
disclosure required under subsection (a), or for use in
adding any such disclosure to non-AI-generated content, with
an intent to deceive a third party about the provenance of a
piece of digital content.
(2) Exemptions.--
(A) In general.--Nothing in paragraph (1) shall inhibit the
ability of any individual to access, read, or review a
disclosure or the content provenance or other information
contained therein.
(B) Exception for nonprofit libraries, archives, and
educational institutions.--
(i) In general.--Except as otherwise provided in this
paragraph, paragraph (1) shall not apply to a nonprofit
library, archives, or educational institution that generates,
distributes, or otherwise handles covered AI-generated
content.
(ii) Commercial advantage, financial gain, or tortious
conduct.--The exception described in clause (i) 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 prohibition described in paragraph (1),
except that such nonprofit library, archive, or educational
institution shall--
(I) for the first offense, be subject to the civil remedies
described in subsection (c); and
(II) for repeated or subsequent offenses, in addition to
the civil remedies described in subsection (c), forfeit the
exemption provided under clause (i).
(iii) Circumventing technologies.--This subparagraph may
not be used as a defense to a claim under subparagraph (C) of
paragraph (1), nor may this subparagraph 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 subsection (a).
(iv) Qualifications of libraries and archives.--In order
for a library or archive to
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qualify for the exemption described in clause (i), the
collections of the 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.
(C) Reverse engineering.--A researcher acting in good faith
may circumvent, remove, add, or tamper with a disclosure
required under subsection (a) for the purpose of improving or
testing the robustness of such disclosures, or for improving
or testing the robustness of detection tools.
(D) Law enforcement, intelligence, and other government
activities.--The prohibitions described in paragraph (1)
shall not prohibit the 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
(c) Enforcement by the Attorney General of the United
States.--
(1) Civil action.--The Attorney General may bring a civil
action in an appropriate district court of the United States
against any person who violates subsection (b)(1).
(2) Powers of the court.--In a civil action brought under
paragraph (1), the court--
(A) may grant a temporary or permanent injunction on such
terms as the court determines reasonable to prevent or
restrain a violation of subsection (b)(1), but may not impose
a prior restraint on free speech or the press protected under
the First Amendment to the Constitution of the United States;
(B) at any time while the civil action is pending, may
order the impounding, on such terms as the court determines
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 of
subsection (b)(1);
(C) may award damages under paragraph (3);
(D) in its discretion, may allow the recovery of costs
against any party other than the United States or an officer
thereof; and
(E) may, as part of a final judgment or decree finding a
violation of subsection (b)(1), 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 that has been impounded under subparagraph
(B) of this paragraph.
(3) Award of damages.--
(A) In general.--Except as otherwise provided in this
subsection, a person committing a violation of subsection
(b)(1) is liable for statutory damages as provided in
subparagraph (B) of this paragraph.
(B) Statutory damages.--
(i) Election of amount based on number of acts of
circumvention.--At any time before final judgment is entered
in a civil action brought under paragraph (1), the Attorney
General may elect to recover an award of statutory damages
for each violation of subsection (b)(1) 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.
(ii) Election of amount; total amount.--At any time before
final judgment is entered in a civil action brought under
paragraph (1), the Attorney General may elect to recover an
award of statutory damages for each violation of subsection
(b)(1) in the sum of not more than $25,000.
(C) Repeated violations.--In a civil action brought under
paragraph (1), if the Attorney General sustains the burden of
proving, and the court finds, that a person has violated
subsection (b)(1) 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.
(D) Innocent violations.--
(i) In general.--The court, in its discretion, may reduce
or remit the total award of damages under subparagraph (B) if
the court finds that the violator was not aware and had no
reason to believe that the violator's acts constituted a
violation.
(ii) Nonprofit libraries, archives, educational
institutions, and public broadcasting entities.--In the case
of a nonprofit library, archive, educational institution, or
public broadcasting entity (as defined in section 118(f) of
title 17, United States Code), the court shall remit damages
under subparagraph (B) if 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.
(E) Duplicative awards.--No compensatory damages may be
awarded under this subsection if compensatory damages have
been awarded under subsection (d) or (e) against the same
defendant for the same conduct.
(d) Enforcement by States.--
(1) Civil action.--If 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
subsection (b)(1), 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 district court of the United States.
(2) Relief.--
(A) In general.--In a civil action brought under paragraph
(1), the court may award relief in accordance with subsection
(c)(3).
(B) Duplicative awards.--No compensatory damages may be
awarded under this subsection if compensatory damages have
been awarded under subsection (c) or (e) against the same
defendant for the same conduct.
(3) Rights of attorney general and commission.--
(A) In general.--Except as provided in subparagraph (D),
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 paragraph (1).
(B) Contents.--The notification required by subparagraph
(A) with respect to a civil action shall include a copy of
the complaint to be filed to initiate the civil action.
(C) Intervention.--Upon receiving a notification under
subparagraph (A), the Attorney General may intervene in the
civil action in accordance with paragraph (5).
(D) Exception.--If it is not feasible for the attorney
general of a State to provide the notification required by
subparagraph (A) before initiating a civil action under
paragraph (1), the attorney general of the State shall notify
the Attorney General of the United States and the Commission
immediately upon instituting the civil action.
(4) Actions by attorney general.--If the Attorney General
of the United States institutes a civil action under
subsection (c)(1) for a violation of subsection (b)(1), no
attorney general of a State may, during the pendency of the
civil action, institute a civil action against any defendant
named in the complaint in the civil action instituted by the
Attorney General of the United States for a violation of
subsection (b)(1) that is alleged in the complaint.
(5) Intervention by attorney general.--The Attorney General
of the United States may intervene in any civil action
brought by the attorney general of a State under paragraph
(1) as a matter of right pursuant to the Federal Rules of
Civil Procedure, 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.
(6) 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--
(A) conduct investigations;
(B) administer oaths or affirmations; or
(C) compel the attendance of witnesses or the production of
documentary or other evidence.
(7) Actions by other state officials.--
(A) In general.--In addition to civil actions brought by an
attorney general of a State under paragraph (1), 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.
(B) Savings provision.--Nothing in this paragraph 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.
(e) Enforcement by Private Parties.--
(1) Civil action.--A provider of a generative artificial
intelligence system or covered online platform who is harmed
by a violation of subsection (b)(1) using that system or
platform may bring a civil action against the violator in an
appropriate district court of the United States.
(2) Relief.--
(A) In general.--In a civil action brought under paragraph
(1), the court may award relief in accordance with subsection
(c)(3).
(B) Duplicative awards.--No compensatory damages may be
awarded under this subsection if compensatory damages have
been awarded under subsection (c) or (d) against the same
defendant for the same conduct.
(3) Rights of attorney general and commission.--
(A) In general.--The provider of a generative artificial
intelligence system or covered online platform shall notify
the Attorney General and the Commission in writing prior to
initiating a civil action under paragraph (1).
(B) Contents.--The notification required by subparagraph
(A) with respect to a civil action shall include a copy of
the complaint to be filed to initiate the civil action.
(C) Intervention.--Upon receiving a notification under
subparagraph (A), the Attorney General may intervene in the
civil action in accordance with paragraph (5).
(4) Actions by attorney general.--If the Attorney General
institutes a civil action under subsection (c)(1) for a
violation of subsection (b)(1), no provider of a generative
artificial intelligence system or covered online platform
may, during the pendency of the civil action, institute a
civil action against any defendant named in the complaint in
the action instituted by the Attorney General for a violation
of subsection (b)(1) that is alleged in the complaint.
(5) Intervention by attorney general.--The Attorney General
may intervene in any civil action brought by a provider of a
generative artificial intelligence system or covered online
platform under paragraph (1) as a
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matter of right pursuant to the Federal Rules of Civil
Procedure, 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.
(f) AI-generated Content Consumer Transparency Working
Group.--
(1) Establishment.--Not later than 90 days after the date
of enactment of this subsection, the Director of the National
Institute of Standards and Technology (in this subsection
referred to as the ``Director''), in coordination with the
Commission, shall establish the AI-generated content consumer
transparency working group (in this subsection 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,
content manipulation, digital disability accessibility, and
secure digital content and delivery.
(I) User experience designers and consumer behavior experts
or consumer psychologists.
(J) Groups or individuals representing victims affected by
covered AI-generated content.
(K) Any other entity determined appropriate by the Director
or by other relevant Federal agencies.
(3) Coordination and delegation of duties.--The Working
Group shall be convened by the Director, who shall delegate
leadership on particular duties, or components of such
duties, to the National Institute of Standards and Technology
and to its existing content provenance workstreams, to the
Commission, or to other relevant Federal agencies, as
appropriate.
(4) Duties.--The duties of the Working Group shall include
the following:
(A) Providing technical standards for identifying and
labeling covered AI-generated content, including by
considering existing, or developing new, standards that
assist with identifying, maintaining, interpreting, and
displaying content provenance information, and establishing
guidelines and best practices for covered online platforms to
implement such standards and the Commission to enforce the
provisions of this section.
(B) Considering how to ensure any labels and content
provenance information are, to the extent economically and
technically feasible--
(i) indelible, tamper-resistant, and tamper-evident to
improve accuracy and ease of identification; and
(ii) interoperable across all covered online platforms,
widely-used content-creation software applications, and other
digital ecosystem considerations that are necessary to
maintain disclosure integrity when transferring from one
online platform, software application, operating system, or
device to another.
(C) Providing the Commission with guidance regarding--
(i) the technical and economic feasibility of the
requirements of this section; and
(ii) the detection of covered AI-generated content,
including by determining--
(I) reasonable criteria for detection accuracy;
(II) what widely available tools, if any, meet the criteria
described in subclause (I); and
(III) any additional information that should be included
within the machine readable disclosures required by
subsection (a)(1)(A)(ii)(I)(aa)(DD).
(D) In order to inform enforcement of this section,
providing to the Commission clarifications and examples of
digital content (which the Commission shall distribute to
covered online platforms or providers of any generative
artificial intelligence system) that--
(i) is created or substantially modified by generative
artificial intelligence systems;
(ii) has had its meaning materially added, removed, or
altered by a generative artificial intelligence system;
(iii) is realistic enough such that a reasonable person
would not necessarily assume the content was created or
substantially modified by a generative artificial
intelligence system; and
(iv) is not considered covered AI-generated content and
would not require the disclosures required by subsection (a).
(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 section,
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.
(G) Supporting the development of guidelines and best
practices to address circumvention techniques and improve the
enforcement of the requirements of this section.
(H) Providing the Commission with guidelines and best
practices regarding how covered online platforms can combat
the liar's dividend, including strategies to help ensure that
non-AI-generated content is not falsely labeled as covered
AI-generated content.
(5) Standards.--Not later than 1 year after the date on
which the Working Group is established under paragraph (1),
the Working Group shall publish technical standards,
guidelines, and recommendations to implement and enforce the
provisions of this Act, taking into account the criteria
described in paragraph (4) and the relevant expertise of the
members of the Working Group.
(6) Report to congress.--Not later than 180 days after the
Working Group publishes the standards under paragraph (5),
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 that includes recommendations for
legislative action.
(7) Sunset.--The working group shall terminate 60 days
after the date on which the Director submits the report
required by paragraph (6) and may be reconvened periodically
at the discretion of the Director or the Commission to
consider further developments in relevant technologies and
research.
(g) Definitions.--In this section:
(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 textual,
audio, or visually-based conversation, including a system
that--
(A) through an application programming interface, or
similar direct connection, publicly posts digital content or
text; or
(B) integrates with a search engine to provide a
conversational search experience.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Content provenance.--The term ``content provenance''
means--
(A) information about the origin of a piece of content and
the history of modifications to the content that is in a
format that is compliant with widely adopted guidelines or
specifications promulgated by an established standards-
setting body; or
(B) data that is embedded into digital content, or that is
included in the metadata of the digital content, for the
purpose of verifying the authenticity or history of
modification of the digital content.
(4) Covered ai-generated content.--The term ``covered AI-
generated content'' means digital content that is created or
substantially modified by a generative artificial
intelligence system such that--
(A) the use of the system materially alters, adds, or
removes 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 or software
application available to users that--
(A) predominantly provides a forum for user-to-user 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; and
(B) either--
(i) at any point during the preceding 12 months, has at
least 10,000,000 unique monthly users or subscribers in the
United States; or
(ii) during the most recently completed taxable year, had
more than $1,500,000,000 gross revenue.
(6) Digital content.--The term ``digital content'' means an
image, video, or audio content, or any combination thereof,
that exists in the form of digital data.
(7) 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 digital content.
(8) Liar's dividend.--The term ``liar's dividend'' means,
with respect to covered AI-generated content, the benefit
that a bad actor may receive or otherwise gain by falsely
claiming that non-AI-generated content is covered AI-
generated content.
(9) Machine-readable.--The term ``machine-readable'' has
the meaning given such term in section 3502 of title 44,
United States Code.
(10) 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.
(11) Open-source.--The term ``open-source'' means, with
respect to software, a software project with source code that
is publicly available for anyone to view, modify, and
distribute.
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