North Carolina 2025-2026 Regular Session

North Carolina House Bill H934 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 934
	3	+	H D
	4	+	HOUSE BILL DRH10421-LR-104B
	5	+
5	6
6	7
7	8		Short Title: AI Regulatory Reform Act. (Public)
8		-	Sponsors: Representatives Johnson, Zenger, Hawkins, and Alston (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Regulatory Reform, if favorable, Judiciary 3, if favorable, Rules, Calendar, and
11		-	Operations of the House
12		-	April 14, 2025
13		-	H934 -v-1
	9	+	Sponsors: Representative Johnson.
	10	+	Referred to:
	11	+
	12	+	DRH10421 -LR-104B
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT AMENDING THE CRIMINAL LAWS TO CREATE THE OFFENSE OF 2
16	15		UNLAWFUL DISTRIBUTION OF A DEEPFAKE AND AMENDING THE CIVIL 3
17	16		PROCEDURE LAWS TO GRANT IMMUNITY FROM CIVIL LIABILITY TO 4
18	17		DEVELOPERS OF ARTIFICIAL INTELLIGENCE PRODUCTS USED BY LEARNED 5
19	18		PROFESSIONALS. 6
20	19		The General Assembly of North Carolina enacts: 7
21	20		SECTION 1.(a) Article 60 of Chapter 14 of the General Statutes is amended by 8
22	21		adding a new section to read: 9
23	22		"§ 14-459. Unlawful distribution of a deepfake. 10
24	23		(a) Definition. – For purposes of this section, the term "deepfake" means an image or 11
25	24		audio or video recording that has been created with the intent to deceive and that appears to depict 12
26	25		a natural person speaking or acting in a manner that the person did not actually speak or act. 13
27	26		(b) Offense. – It is unlawful for a person, without the affirmative consent of the depicted 14
28	27		individual, to knowingly do any of the following for the purpose of (i) harassing, extorting, 15
29	28		threatening, or causing physical, emotional, reputational, or economic harm to an individual 16
30	29		falsely depicted or (ii) injuring a candidate for elected office or influencing an election: 17
31	30		(1) Create a deepfake with an intent to distribute the deepfake. 18
32	31		(2) Distribute a deepfake. 19
33	32		(3) Solicit the creation of a deepfake with an intent to distribute the deepfake. 20
34	33		(c) Punishment. – A violation of this section is punishable as a Class 1 misdemeanor. 21
35	34		(d) Destruction of Deepfake. – In addition to any penalty or other damages, the court may 22
36	35		award the destruction of any deepfake made in violation of this section. 23
37	36		(e) Civil Action. – In addition to any other remedies at law or in equity, including an 24
38	37		order by the court to destroy any deepfake disclosed in violation of this section, any person 25
39	38		aggrieved by a violation of subsection (b) of this section, has a civil cause of action against any 26
40	39		person who creates or distributes the deepfake and is entitled to recover from the other person 27
41	40		any of the following: 28
42	41		(1) Actual damages, but not less than liquidated damages, to be computed at the 29
43	42		rate of one thousand dollars ($1,000) for each time the deepfake is 30
44	43		redistributed or in the amount of ten thousand dollars ($10,000), whichever is 31
45	44		higher. 32
46	45		(2) Punitive damages. 33
47		-	(3) A reasonable attorneys' fee and other litigation costs reasonably incurred. 34 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 934-First Edition
	46	+	(3) A reasonable attorneys' fee and other litigation costs reasonably incurred. 34
	47	+	H.B. 934
	48	+	Apr 10, 2025
	49	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	50	+	Page 2 DRH10421-LR-104B
49	51		(f) Other Sanctions or Remedies Not Precluded. – A violation of this section is an offense 1
50	52		additional to other civil and criminal provisions and is not intended to repeal or preclude any 2
51	53		other sanctions or remedies." 3
52	54		SECTION 1.(b) This section becomes effective December 1, 2025, and applies to 4
53	55		offenses committed on or after that date. 5
54	56		SECTION 2.(a) Chapter 1 of the General Statutes is amended by adding a new 6
55	57		Article to read: 7
56	58		"Article 43G. 8
57	59		"Actions Pertaining to Artificial Intelligence. 9
58	60		"§ 1-539.30. Definitions. 10
59	61		The following definitions apply in this Article: 11
60	62		(1) Artificial intelligence product or AI product. – Any algorithm, product, 12
61	63		software, or system that: 13
62	64		a. Performs tasks that would typically require human intelligence, such 14
63	65		as reasoning, language processing, or decision making; 15
64	66		b. Is designed to operate with some degree of autonomy; 16
65	67		c. Uses techniques that enable the system to improve its performance 17
66	68		over time or through exposure to data; and 18
67	69		d. Is marketed, distributed, licensed, or otherwise made available for use, 19
68	70		whether as a stand-alone product or as a component integrated into 20
69	71		other products or services. 21
70	72		(2) Client. – Any person who engages the services of a learned professional and 22
71	73		who relies upon the learned professional's expertise, judgment, and advice 23
72	74		where the professional relationship with the learned professional is governed 24
73	75		by professional standards, codes of conduct, or regulations. 25
74	76		(3) Developer. – Any person that: 26
75	77		a. Creates, designs, programs, trains, modifies, or substantially 27
76	78		contributes to the creation or modification of an AI product; 28
77	79		b. Exercises control over the AI product's design specifications, 29
78	80		functionality, capabilities, limitations, or intended uses; 30
79	81		c. Tests, validates, documents, or certifies an AI product prior to its 31
80	82		release or deployment; 32
81	83		d. Markets, distributes, licenses, or makes available an AI product under 33
82	84		their own name, brand, or trademark, regardless of whether they 34
83	85		created the original underlying technology; or 35
84	86		e. Either creates an original AI product or is a secondary developer who 36
85	87		substantially modifies, retrains, or adapts an existing AI product for a 37
86	88		new use or market. 38
87	89		(4) Error. – Any output, action, recommendation, or omission by an AI product 39
88	90		that produces objectively incorrect information. The term includes when an 40
89	91		AI product fails to perform a function or task that it expressly or implicitly 41
90	92		represents itself as capable of performing. 42
91	93		(5) Learned professional. – Any individual who: 43
92	94		a. Possesses specialized education, training, knowledge, or skill in a 44
93	95		recognized profession; 45
94	96		b. Is licensed, certified, or otherwise authorized by an occupational 46
95	97		licensing board to practice in their field in this State; 47
96	98		c. Is bound by professional standards, ethical obligations, and a duty of 48
97	99		care to clients; 49 General Assembly Of North Carolina Session 2025
98		-	~~House Bill 934-First Edition~~ Page 3
	100	+	DRH10421-LR-104B Page 3
99	101		d. Exercises independent professional judgment when utilizing tools, 1
100	102		including AI products, in the course of rendering professional services; 2
101	103		and 3
102	104		e. Is expected to possess sufficient knowledge to evaluate the 4
103	105		appropriateness, limitations, and risks of tools employed in their 5
104	106		professional practice, including artificial intelligence products, as they 6
105	107		pertain to a specific client matter. 7
106	108		"§ 1-539.31. Immunity from civil liability for artificial intelligence developers. 8
107	109		When a learned professional uses an artificial intelligence program or product in the course 9
108	110		of providing professional services to a client, the developer of the artificial intelligence product 10
109	111		is not liable for any errors and the learned professional is solely responsible for any damage to 11
110	112		the client resulting from errors generated by the artificial intelligence product. 12
111	113		"§ 1-539.32. Other privileges and immunities. 13
112	114		This Article does not affect any other immunities from civil liability established by the 14
113	115		General Statutes or available at common law." 15
114	116		SECTION 2.(b) This section becomes effective December 1, 2025, and applies to 16
115	117		acts or omissions occurring on or after that date. 17
116	118		SECTION 3. Except as otherwise provided, this act is effective when it becomes 18
117	119		law. 19