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Two AI Bills Await Governor Hochul’s Signature; Here Is What They Would Do

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The Stealth Crawler Prohibition Act and the FAIR News Act Are Intended To Curb AI Abuses and Compel Disclosure In The News

By David Carlucci

david carlucciEvery morning, people across Rockland open a local news site to check a school closing, a zoning vote, or a traffic alert. On some of those same sites, a large share of the visitors are not people at all. They are automated programs. Some are artificial intelligence tools gathering content. Some never say who they are.

In June, the State Legislature passed two bills dealing with artificial intelligence and the news. One sets rules for the bots that visit news sites. The other sets rules for how newsrooms use AI. Both now await action from Governor Hochul. Here is what each one does, and who it would affect.

What the Stealth Crawler Prohibition Act Does

The New York Stealth Crawler Prohibition Act (S.9934-A/A.11292), sponsored by Senator Michael Gianaris, covers any software that visits a news website. That includes search crawlers, bots, and AI agents that browse the web on someone’s behalf. Before accessing a covered news site, the software must identify itself. It must name the product, its version, and the company behind it. It must also disclose its purpose, including all the ways the content could be used.

Software that does not follow those rules is a “stealth crawler.” Deploying one in a way that burdens a news site or causes it economic harm would be illegal. The Attorney General could seek civil penalties of up to $15,000 per day for each violation, without having to prove that anyone was injured. News outlets would gain a new tool as well. Before filing a lawsuit, they could ask a court for a subpoena requiring an internet provider to identify an anonymous bot operator and preserve the relevant records.

The law protects news sources that publish at least monthly, have a process for correcting errors, and reach at least 1,000 monthly users in New York. It would take effect 90 days after it is signed.

What the FAIR News Act Does

The FAIR News Act (S.8451-B/A.8962-B), sponsored by Senator Patricia Fahy and Assemblymember Nily Rozic, would require a clear label on any news content substantially created by generative AI. The label would appear at the top of a page, image, or video. For audio, it would be read aloud at the start. Content eligible for copyright registration is exempt.

The bill defines news media broadly. It includes newspapers, websites, newsletters, podcasts, and broadcasts that provide news, weather, traffic, sports, or entertainment. It applies to content accessible in New York, regardless of where the outlet is based. The Attorney General would enforce it, with subpoena power and penalties of $1,000 for a first offense and $5,000 for each one after that. It would take effect 60 days after signing, and the bill passed the Senate 53 to 7.

What This Means for Local News Outlets

Local publishers sit at the center of both bills. Under the crawler bill, a community newspaper or a local broadcaster with at least 1,000 New York readers would have new legal protection against bot traffic that strains its servers. News organizations that backed the bill report that at some sites, more than half of all traffic is not human. For a small outlet, that traffic means real hosting costs.

The FAIR News Act asks something of those same outlets. Many small newsrooms now use AI tools to transcribe interviews, translate stories, or draft headlines. Each outlet would need to decide when that help becomes “substantial” enough to require a label. The bill does not define the term, and the copyright exemption adds another judgment call. Larger organizations can turn to legal staff. A two-person weekly cannot.

What This Means for Businesses

The crawler bill reaches well beyond AI companies. Many ordinary businesses use automated tools that read the web. A retailer may track competitor prices. A marketing firm may monitor press coverage for its clients. A company may use an AI assistant to gather news on its industry. If those tools touch a covered news site, the business would need to confirm they identify themselves it identifies itself properly. Internet providers would also need a process to respond to the new subpoenas.

The FAIR News Act matters for any business that produces content fitting its definition of news media. That could include a company newsletter or podcast covering local events, sports, or entertainment.

What This Means for Residents

For readers, the FAIR News Act would mean labels on AI-generated news they see, hear, or watch. The crawler bill works out of sight, but it could shape how much local reporting flows into the AI tools many people now use to get information.

Both bills have drawn debate. Publishers and newsroom unions see them as protections for local journalism and public trust. Digital rights groups and many news organizations have raised First Amendment and privacy concerns, and the same publishers who back one bill oppose the other.

What Comes Next

The Governor can sign either bill, veto it, or negotiate changes with the sponsors before signing. Whatever she decides, New York will be setting an early marker on AI and the news. Other states will be watching to see how it works here.

David Carlucci consults organizations on navigating government and securing funding. He served for ten years in the New York Senate.