News Tennessee SB 1700 CHAT Act 2026: Difference between revisions

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Latest revision as of 02:34, 28 April 2026

April 21, 2026 — Tennessee House Passes CHAT Act on Chatbot Safety and Data Privacy; Bill Awaits Governor's Action

The Tennessee House of Representatives unanimously approved Senate Bill 1700, the Curbing Harmful AI Technology (CHAT) Act, on April 21, 2026, by a vote of 90-0. The legislation, sponsored by Senator Raumesh Akbari, establishes comprehensive safety and data privacy requirements for conversational AI systems operating in the state. As of April 26, 2026, the bill awaits action by Governor Bill Lee, with approximately a May 8, 2026 deadline before it becomes law without signature.

Key Provisions

The CHAT Act creates a regulatory framework for chatbots and conversational AI platforms, addressing growing concerns about deceptive practices, data collection, and the potential for AI systems to manipulate users, particularly minors. Key provisions include:

  • Persistent disclosures and pop-up notifications: Covered entities must inform users they are not engaging with a human at four intervals — upon login, every 30 minutes of continuous engagement, when prompted by the user, and when asked to provide legally regulated advice (medical, financial, or legal).[1]
  • Covered chatbot definition: Applies to publicly accessible AI systems that generate at least $25 million in annual revenue, have at least 1 million monthly users, and could likely be used by minors. Video game chatbots and customer service chatbots are excluded.[2]
  • Child safety policies: AI companies offering tools used by minors must develop and publish publicly available child safety protection policies.[2]
  • Civil penalties: Up to $25,000 per violation.[1]
  • Private right of action: Individuals may seek uncapped actual and punitive damages, plus costs, fees, and "any other relief the court deems proper."[1]

Notable Amendments

The bill was narrowed after White House input, which amended the definition of "catastrophic risk" to emphasize extreme, high-consequence harms, adjusted transparency rules to require public summaries rather than full internal disclosures, and provided carve-outs for academic research systems. The bill also includes a provision allowing Tennessee to recognize federal compliance standards as sufficient to meet state requirements if Congress passes comparable legislation.[2]

Legislative History

The Tennessee Senate passed SB 1700 unanimously on April 14, 2026 (31-0). The House approved the bill on April 21, 2026 (90-0). The companion House bill (HB 1946) was abandoned in favor of the Senate version. The bill was sent to Governor Bill Lee for final consideration. The Tennessee legislative session closed on April 24, 2026; under Tennessee law, the governor has 10 calendar days (excluding Sundays) from session adjournment to sign or veto bills, after which they become law without signature — creating an approximate May 8, 2026 deadline.[3][4]

Context

Tennessee's CHAT Act is part of a broader wave of state-level chatbot legislation enacted in 2026. With the passage of SB 1700, Tennessee becomes the latest state to establish specific regulatory oversight for conversational AI systems, joining Nebraska, which enacted its Conversational AI Safety Act on April 14, 2026. Governor Lee has already signed other AI-related legislation this session, including SB 1580 (prohibiting AI from representing itself as a mental health professional) and SB 837 (excluding AI from legal personhood).[4]

See Also

References