Dear Chairman Guthrie, Ranking Member Pallone and Members of the Committee,
On behalf of the National Conference of State Legislatures, the bipartisan organization representing the legislatures of our nation's states, territories, commonwealths and Washington, D.C., we are writing to express our strong opposition to the proposed 10-year moratorium on state artificial intelligence legislation included in the Energy and Commerce Committee's reconciliation measure. We urge the committee to remove this language from the bill. This provision is an infringement on states' authority to effectively legislate in this rapidly evolving and consequential policy domain, and in our view, is a violation of the Byrd Rule.
Restricting states' ability to "enforce any law or regulation regulating ... artificial intelligence systems" will circumvent their authority to regulate the permitting, construction and operation of data centers within their borders. This will severely limit the ability of states and localities to make decisions regarding the siting and operation of these large-scale projects, raising costs for ratepayers, jeopardizing zoning decisions that protect our mutual constituents and impacting existing infrastructure such as power grids and generating facilities.
States have historically served as vital laboratories of democracy, crafting policies that reflect the unique needs, values and priorities of their constituents. In the realm of AI-where implications for privacy, cybersecurity, fraud, workforce, education and public safety remain profound and continually evolving-legislative flexibility is essential. A federally imposed moratorium would not only stifle innovation but potentially leave communities vulnerable in the face of rapidly advancing technologies.
Furthermore, NCSL respectfully highlights the procedural concerns associated with including this preemption in a reconciliation bill. Under the Senate's Byrd Rule, which governs the budget reconciliation process, provisions deemed "extraneous" are prohibited. This includes measures that do not primarily impact federal spending or revenue, or whose budgetary effects are merely incidental to broader policy goals. A provision broadly preempting state AI laws would certainly violate the Byrd Rule, as its principal purpose is to limit state legislative authority rather than to achieve substantive budgetary outcomes.
States have demonstrated leadership on critical issues in the technology space, often well in advance of federal action. By implementing a blanket moratorium on state laws, Congress forfeits the benefits of this policy leadership and eliminates opportunities to test and refine regulatory models through localized experimentation.
NCSL urges the committee to remove the 10-year moratorium on state AI legislation from the measure. Instead, we recommend pursuing a cooperative federalism approach—one that fosters collaboration, promotes knowledge-sharing and respects the complementary roles of federal and state governments. Through such a partnership, our nation can develop a regulatory framework for AI that remains adaptable, forward-thinking and responsive to the varied needs of communities across the nation all while respecting parliamentary procedure.
Thank you for your consideration of this critical matter. NCSL remains committed to working with you to ensure responsible and effective AI policy development. For additional information or questions, you may contact me directly or NCSL legislative directors Barrie Tabin or Ben Nasta.
Sincerely,
Tim Storey
Chief Executive Officer
National Conference of State Legislatures
Cc: Members of the House Energy and Commerce Committee