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Bill

SB 747

Relating to the application of fertilizer.

2025 Regular Session Introduced by Lew Frederick and 8 co-sponsors

Creates NC Office of Artificial Intelligence Policy and an AI Learning Laboratory to test AI, study risks, and guide evidence-based, limited regulation.

In committee upon adjournment.
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Bill Summary · SB 747

SB 747 — AI Learning Agenda (Office of Artificial Intelligence Policy; AI Learning Laboratory)

Status: Passed 1st Reading (Introduced Feb 21, 2025)
Subject areas: Commerce; Emerging technologies; Information technology; Public research; STEM; Artificial intelligence

Main purpose

Establish a centralized state office to coordinate North Carolina’s approach to artificial intelligence (AI) and to create an experimental “Learning Laboratory” (a regulatory sandbox / research program) that tests AI uses, identifies risks and best practices, and informs evidence‑based policy and possible regulatory changes.

Key provisions

  • Creates the Office of Artificial Intelligence Policy (the Office) within the Department of Commerce. The Secretary of Commerce appoints a Director and the Office adopts rules to implement the statute.
  • Office responsibilities include:
    • Identifying regulatory barriers to AI development and recommending changes.
    • Identifying regulatory gaps where existing law is insufficient to prevent or redress concrete harms.
    • Conducting an inventory of existing state AI regulation.
    • Creating and administering the Artificial Intelligence Learning Laboratory program.
    • Consulting with stakeholders, other states’ programs, and convening an AI Learning Advisory Panel (academia, industry, legal experts, civil society).
  • Establishes the Artificial Intelligence Learning Laboratory:
    • Provides a structured, stakeholder‑informed “learning agenda” to examine selected AI applications, risks, and policy questions.
    • Sets procedures (by rule) for application, selection, participation, fees, data usage, cybersecurity, participant disclosures, reporting, and limited extensions.
    • Allows the Office to negotiate “regulatory mitigation agreements” with participants and relevant state agencies (e.g., cure periods, reduced fines, tailored terms) to permit controlled testing while managing consumer protection and safety concerns.
    • Requires a public registry of participants and summary reports of findings, excluding proprietary or security‑sensitive information.
  • State AI inventory requirement:
    • By March 1, 2026 the Office may prescribe a form; by October 1, 2026 state agencies compile and submit inventories of AI systems in use or under consideration (vendor, function, data sources, decision use, benefits/risks, fiscal effect, sharing).
  • Reporting and evaluation:
    • Beginning July 1, 2026, the Office must report annually to the General Assembly on the proposed learning agenda, Laboratory findings and outcomes, recommended legislation, and a review of the Learning Laboratory model (including whether elements should be codified, expanded, or sunset).

Definitions (selected)

  • “Learning Laboratory” — the program for AI analysis and research.
  • “Learning Agenda” — subject areas the Office selects for focused study.
  • “Regulatory mitigation” & “regulatory mitigation agreement” — tools enabling tailored, limited regulatory flexibility for participants when restitution/mitigation is required.

Who is affected

  • State government: agencies must inventory AI systems and will interact with the Office on regulation and potential mitigation agreements.
  • Businesses, vendors, and researchers: may apply to participate in the Learning Laboratory and be subject to program rules, reporting, and possible regulatory mitigation terms.
  • Consumers and civil society: benefit from Office oversight, public reporting, and advisory panel input; may gain protections through mitigation terms and research-informed regulation.

Procedural / timeline notes

  • Office created in the Department of Commerce; rulemaking authority provided to implement program elements.
  • Key dates in the bill text:
    • Office may prescribe inventory form by March 1, 2026.
    • State agencies submit AI inventories by October 1, 2026.
    • Annual reporting to the General Assembly begins July 1, 2026.
  • The bill establishes an iterative review requirement to evaluate whether the Laboratory’s elements should be codified, expanded, or sunset.

Potential impacts

  • Centralizes AI policy coordination and creates an experimental venue for responsible innovation and regulatory learning.
  • May accelerate state understanding of AI uses/risks and produce targeted legislative or regulatory proposals.
  • Imposes new compliance tasks on state agencies (inventory) and establishes an entry path for private actors to test AI under supervised, limited regulatory relief.
  • Raises tradeoffs between transparency and protection of proprietary/security information; the bill limits public disclosure of sensitive data but mandates public summaries.

If you want, I can:
- Draft a one‑page explainer for agency compliance (inventory form checklist).
- Extract the bill’s rulemaking and reporting tasks into a timeline with responsible parties.

Compiled from official sources — confirm details with the bill’s official record.

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