North Carolina HB 934: Artificial Intelligence Regulatory Reform Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 934
Committee Substitute Favorable 5/6/25

Short Title: AI Regulatory Reform Act. (Public)
Sponsors:
Referred to:
April 14, 2025
*H934-v-2*
A BILL TO BE ENTITLED 1
AN ACT AMENDING THE CRIMINAL LAWS TO CREATE THE OFFENSE OF 2
UNLAWFUL DISTRIBUTION OF A DEEPFAKE AND AMENDING THE CIVIL 3
PROCEDURE LAWS TO GRANT IMMUNITY FROM CIVIL LIABILITY TO 4
DEVELOPERS OF ARTIFICIAL INTELLIGENCE PRODUCTS USED BY LEARNED 5
PROFESSIONALS. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.(a) Article 60 of Chapter 14 of the General Statutes is amended by 8
adding a new section to read: 9
"§ 14-459. Unlawful distribution of a deepfake. 10
(a) Definitions. – For purposes of this section, the following definitions apply: 11
(1) Deepfake. – An image, audio recording, or video recording that is created with 12
the intent to deceive and is digitally altered or generated to inauthentically 13
depict a natural person speaking or acting in a manner that the person did not 14
actually speak or act, in such a manner that a reasonable person would not 15
know that the depiction is false. A work of artistic or newsworthy value, 16
including commentary, criticism, satire, or parody, is not a deepfake. 17
(2) Interactive computer service. – Any information service, system, or access 18
software provider that provides or enables computer access by multiple users 19
to a computer server, including specifically a service or system that provides 20
access to the internet and such systems operated or services offered by 21
libraries or educational institutions. 22
(b) Offense. – It is unlawful for a person, without the affirmative consent of the depicted 23
individual, to knowingly do any of the following for the purpose of (i) harassing, extorting, 24
threatening, or causing physical, emotional, reputational, or economic harm to an individual 25
falsely depicted or (ii) injuring a candidate for elected office or influencing an election: 26
(1) Create a deepfake with an intent to distribute the deepfake. 27
(2) Distribute a deepfake. 28
(3) Solicit the creation of a deepfake with an intent to distribute the deepfake. 29
(c) Punishment. – A violation of this section is punishable as a Class 1 misdemeanor. 30
(d) Civil Action. – In addition to any other remedies at law or in equity, including an 31
order by the court to destroy any deepfake disclosed in violation of this section, any person 32
aggrieved by a violation of subsection (b) of this section has a civil cause of action against any 33
person who creates or distributes the deepfake in violation of subsection (b) of this section and 34
is entitled to recover from the other person any of the following: 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 934-Second Edition
(1) Actual damages, but not less than liquidated damages, to be computed at the 1
rate of one thousand dollars ($1,000) for each time the deepfake is 2
redistributed or in the amount of ten thousand dollars ($10,000), whichever is 3
higher. 4
(2) Punitive damages. 5
(3) A reasonable attorneys' fee and other litigation costs reasonably incurred. 6
(e) Exceptions. – The following entities shall not be liable for the actions of a person that 7
uses that entity's service or technology in the commission of an offense under subsection (b) of 8
this section: 9
(1) An interactive computer service. 10
(2) A provider or developer of any technology used in the creation of a deepfake. 11
(f) Other Sanctions or Remedies Not Precluded. – A violation of this section is an offense 12
additional to other civil and criminal provisions and is not intended to repeal or preclude any 13
other sanctions or remedies." 14
SECTION 1.(b) This section becomes effective December 1, 2025, and applies to 15
offenses committed on or after that date. 16
SECTION 2.(a) Chapter 1 of the General Statutes is amended by adding a new 17
Article to read: 18
"Article 43G. 19
"Actions Pertaining to Artificial Intelligence. 20
"§ 1-539.30. Definitions. 21
The following definitions apply in this Article: 22
(1) Artificial intelligence product or AI product. – Any algorithm, product, 23
software, or system that: 24
a. Performs tasks that would typically require human intelligence, such 25
as reasoning, language processing, or decision making; 26
b. Is designed to operate with some degree of autonomy; 27
c. Uses techniques that enable the system to improve its performance 28
over time or through exposure to data; and 29
d. Is marketed, distributed, licensed, or otherwise made available for use, 30
whether as a stand-alone product or as a component integrated into 31
other products or services. 32
(2) Client. – Any person who engages the services of a learned professional and 33
who relies upon the learned professional's expertise, judgment, and advice 34
where the professional relationship with the learned professional is governed 35
by professional standards, codes of conduct, o