AI at a Crossroads: A Nationwide Strategy or Californication?

US-China Technology CompetitionHouse Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet · 2025-09-18 · 119th Congress
The House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet held this hearing to examine whether Congress should preempt the roughly 1,000 state AI-related bills pending nationwide in favor of a national framework, following the failed attempt to include a 10-year state AI moratorium in earlier legislation. Begins at 0:20:18
Transcript
Highlights

Title

Federal preemption of state AI laws: hearing on national policy vs. patchwork

Purpose

The House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet held this hearing to examine whether Congress should preempt the roughly 1,000 state AI-related bills pending nationwide in favor of a national framework, following the failed attempt to include a 10-year state AI moratorium in earlier legislation. Four witnesses debated the constitutional, economic, and consumer-protection consequences of federal preemption versus continued state regulation, with several members and family members of children harmed by AI chatbots present. Begins at0:20:18

Who spoke

Chairman Darrell Issa (R-CA)0:20:18: Opened by arguing the US must "innovate 10 times faster" than it regulates or lose its edge to China0:24:02, warned that roughly 1,000 pending state AI bills create a damaging patchwork0:24:44, and cited a Nevada data center as an example of infrastructure competing with California0:26:13; later summarized areas of apparent bipartisan agreement on preserving common-law causes of action2:09:36.

Ranking Member Hank Johnson (D-GA)0:31:14: Argued broad preemption would wipe out state common-law consumer protections along with statutes0:32:55, citing *Riegel v. Medtronic* on federal preemption reaching common-law duties0:34:06; later questioned Prof. Richards on how tort law protects Americans absent statutes1:12:07 and referenced Megan Garcia's lawsuit against Character Technologies and Google1:14:13.

Dr. David Bray, Loomis Council/Simpson Center0:40:18: Recommended a light-touch, domain-specific approach updating existing laws like the Privacy Act and HIPAA rather than sweeping new AI regulation0:43:56; highlighted active inference, open-weight models, and federated learning as promising approaches0:41:14; agreed bad actors should be held accountable and generally applicable laws like copyright should still apply1:11:06.

Kevin Frazier, University of Texas School of Law0:45:21: Argued the Constitution places regulation of frontier AI model training squarely with the federal government while use-based regulation can remain with states0:47:09; said training separate models for each state's rules is a "billion-dollar undertaking"0:48:26; later called California's SB53 "the least bad" state AI bill, endorsing its whistleblower protections and definitional review requirements1:22:27.

Adam Thierer, R Street Institute0:50:06: Said nearly 50 AI bills are pending in California and New York is considering almost triple that0:50:59; cited the Telecommunications Act of 1996 and Internet Tax Freedom Act of 1998 as precedent for national preemption0:51:46; argued the EU has committed "continental technological suicide" via preemptive regulation, noting only 2 of the top 25 digital companies by market cap are European1:53:37.

Prof. Neil Richards, Washington University School of Law0:55:13: Warned broad AI preemption would be "reckless," exposing consumers to unforeseeable harms0:56:45; argued state laws built the digital trust underlying Silicon Valley's success, listing privacy, data breach, and child-safety statutes that wouldn't exist without state action0:57:34; said a moratorium would impede lawsuits like Megan Garcia's1:15:37; said he has not studied SB53 in detail but supports preserving states' ability to experiment2:00:27.

Rep. Suhas Subramanyam / gentleman from Virginia, Mr. Kline1:06:47: Asked Frazier about balancing copyright protection with the IP clause's knowledge-spreading purpose1:07:13 and asked Bray about avoiding early-internet safe-harbor mistakes1:09:32.

Rep. Hank Johnson (D-GA) Q&A1:12:07: (see above) pressed on common law and cited Megan Garcia's case in detail1:14:13.

Rep. Lance Gooden (R-TX)1:17:59: Asked Thierer about the cost of a patchwork on small businesses, citing an Engine/Michigan study finding a privacy-policy change can cost $6,0001:18:20.

Rep. Young Kim / gentleman from California, Mr. Correa1:20:16: Compared the debate to General Patton's "lead, follow, or get out of the way"1:20:35 and questioned Frazier about California's AB 1046/1047 on chatbot factual-accuracy mandates1:21:22.

Rep. Jamie Raskin (D-MD), Ranking Member of Full Committee1:23:03: Argued patchwork state laws are simply federalism at work, comparing it to child labor and clean-air laws preceding federal statutes1:23:28; pressed Richards on whether any precedent exists for preempting state law without a federal substitute1:25:43; recognized parents Kristen Bride, Juliana Arnold, Megan Garcia, and Jane Doe by name1:27:06.

Rep. Laurel Lee (R-FL)1:28:32: Asked Frazier to elaborate on why AI implicates national economic/political stability distinct from Brandeis's "laboratories of democracy"1:29:02, and asked Thierer about designating NIST/CAISI to set AI standards1:32:01.

Rep. Zoe Lofgren (D-CA)1:33:32: Defended California's economic and research credentials (fourth-largest global economy, 32 of the top 50 AI companies)1:35:27; criticized NIST's capacity after being "eviscerated" by DOGE cuts1:37:24; urged reviving the bipartisan House AI Task Force under the Science Committee1:38:10.

Rep. Kylie (Kevin Kiley, R-CA)1:40:03: Argued California state government lacks competence to regulate the "most powerful technology in human history," citing struggles with roads and utilities1:40:19; noted an AI model recently won gold at the International Math Olympiad1:41:03; proposed a federal role in infrastructure, risk assessment, and safety research while leaving deployment experimentation to states1:44:47.

Rep. Deborah Ross (D-NC)1:45:52: Entered a letter from the Council of Innovation Promotion into the record1:46:19; cited state AI laws in Alabama (CSAM), Nevada (mental health chatbots), and New Hampshire (election deepfakes)1:48:13; suggested some AI companies favor preemption to exploit congressional gridlock1:49:08.

Rep. Tom Tiffany (R-WI)1:51:18: Asked Thierer about EU-style ex-ante regulation stifling small businesses based on recent meetings in Dublin1:51:46; asked Frazier what state regulations would be appropriate under a use/development split1:55:11.

Rep. Jay Obernolte (R-CA)1:56:52: Noted the bipartisan House AI Task Force produced over 80 recommendations1:57:13; said a proposed 10-year state moratorium failed 99-1 in the Senate after opposition from 17 Republican governors and 20 Republican attorneys general1:57:44; pressed Thierer on what Congress should regulate given preemption failed1:58:13; noted major AI companies (Apple, Google, Meta, Anthropic, Nvidia) are headquartered in California1:59:41.

Rep. Eric Swalwell (D-CA)2:03:20: Condemned the murder of Charlie Kirk and criticized the suspension of Jimmy Kimmel following FCC Chairman Brendan Carr's comments, calling it government censorship2:03:40; asked Richards about risks to children if government does nothing on AI2:06:30.

Key moments

Issa said all 50 states have implemented some form of AI regulation and roughly 1,000 pieces of AI legislation are pending nationwide, which he called a threat to industry certainty0:24:44.

Johnson invoked *Riegel v. Medtronic* to argue that preempting state AI statutes would also sweep away common-law tort claims unless Congress explicitly preserves them0:34:06.

Thierer noted 17 Republican governors and Colorado Governor Jared Polis have called for federal preemption or a moratorium, while Connecticut's Ned Lamont and New York's Kathy Hochul warned against a "patchwork quilt" of state rules0:52:13.

Johnson and Raskin named specific families present—Kristen Bride, Juliana Arnold, Megan Garcia, and Jane Doe—whose children were harmed or died after interactions with AI chatbots, including Megan Garcia's suit against Character Technologies and Google over her 14-year-old son's death1:14:131:27:06.

Frazier argued training a separate frontier AI model to comply with a single state's rules "is a billion-dollar undertaking," making state-by-state development regulation impractical0:48:26.

Obernolte reported a 10-year state AI moratorium provision failed 99-1 in the Senate after being opposed by 17 Republican governors, 20 Republican attorneys general, and 130 Republican state lawmakers1:57:44.

Thierer said 18 of the 25 largest digital technology companies by market cap are American, versus only two European, attributing Europe's stagnation to preemptive "guilty until proven innocent" regulation1:53:37.

Raskin pressed Richards on precedent for preempting state law "without substituting anything," to which Richards responded he could not think of one, calling it potentially "disastrous"1:25:43.

Lofgren cited California's economic scale (fourth-largest economy, 32 of the top 50 AI companies) to rebut the hearing's "Californication" framing, while criticizing NIST's reduced capacity after DOGE cuts1:35:271:37:24.

Issa closed by securing apparent agreement from all four witnesses that any federal AI law should preserve state common-law causes of action for harmed individuals2:11:132:13:33.

Metadata

CommitteeHouse Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet
Chamber / CongressHouse · 119th Congress
Date2025-09-18
TypeHearing
Witnesses
Dr. David Bray — Loomis Council Member & Distinguished Fellow
Mr. Kevin Frazier — AI Innovation and Law Fellow
Mr. Adam Thierer — Senior Technology & Innovation Fellow
Mr. Neil Richards — Koch Distinguished Professor in Law
Videoyoutube
Transcript342 caption blocks · 19,210 words · 2:20:14 runtime
EventCongress.gov 118623