S.Amdt. 2425

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.
______