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⚖️ POLICY & REGULATION

G20 Unanimously Endorses The US-Drafted Carolina Principles: All 20 G20 members, including China and Russia, endorsed the US framework on Sept. 2 at a Trump administration tech summit in North Carolina, Commerce Secretary Howard Lutnick announced. The non-binding principles urge sector-specific AI rulemaking, tell governments to avoid creating new regulatory bodies, and push closer work with private industry. The US pitched the framework to ministers at Chapel Hill on Sept. 1; formal adoption is set for the G20 leaders summit in December at Trump National Doral. Link

Sanders And Casar Unveil A Permanent Ban On Artificial Superintelligence: Sen. Bernie Sanders and Rep. Greg Casar announced the Ban Artificial Superintelligence Act on Sept. 3. It would permanently prohibit superintelligent AI, pause advanced AI development until a new federal regulator writes safety rules, and create a Cabinet-level AI agency to enforce the prohibition. Violators would face a corporate death penalty and up to 20 years in prison. The sponsors cited this summer's rogue-agent incidents as the trigger. The bill has been announced but not yet introduced. Link

Massie And Burlison Introduce The Flock-Off Act: The bill would bar federal funding for automated license plate readers except at the border or for toll enforcement. Cosponsors span the coalition — Ro Khanna (D-Calif.) alongside Republicans Lauren Boebert, Paul Gosar, Chip Roy and Victoria Spartz. Massie said the federal government "shouldn't provide 'security' grants to cities and police departments that have gone beyond the pale." It lands days after Florida revoked permits for roughly 700 Flock cameras on state highways. Link

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STATES

Albany Presses Hochul To Sign An AI Workforce Reporting Bill: State Sen. Michelle Hinchey and labor leaders urged the governor to sign legislation requiring businesses to report to the Department of Labor how AI is affecting their hiring and employment practices, timing the push to Labor Day. Sponsors argue the usual end-of-year wait for a signature carries more cost when the technology is moving this fast. Hundreds of bills await her action. Link

Louisville Advances Stricter Data Center Zoning To Metro Council: Planning commissioners voted 5-3 on Sept. 3 to send Metro Council a tougher rule set than staff proposed, requiring nearly all new data centers to go through rezoning, which opens public comment and puts final approval with the council. The package bans hyperscale facilities over 500,000 square feet, sets a 65-decibel noise standard, and confines new data centers to industrial areas. Metro Council takes it up Sept. 15. Link

California Kills Its Flock Camera Bill For A Fifth Straight Year: Assembly majority leader Cecilia Aguiar-Curry blocked SB 1013 before it could reach a floor vote on Aug. 31, the session's final day, making this the fifth consecutive year California has failed to enact limits on automated license plate readers. The repeated failure leaves the country's largest state without statutory guardrails while Congress takes up the same question. Link

🛡️ SAFETY & SECURITY

Pentagon Reaffirms Anthropic's Supply Chain Risk Designation: Emil Michael, under secretary of war for research and engineering, said on Sept. 3 that "Anthropic is still a designated Supply Chain Risk" at the department and across the defense industrial base. The statement landed one day after Commerce Secretary Howard Lutnick told Bloomberg Television the company had "gotten religion," and a week after Judge Rita Lin of the Northern District of California ruled the designation unlawful on Aug. 27. Michael wrote the March memorandum that justified it. The underlying dispute is Anthropic's refusal to lift its prohibitions on lethal autonomous weapons and mass surveillance of Americans. Link

OpenAI Puts $1 Billion Of Subsidized Security Tools Behind Critical Infrastructure: The company announced its Daybreak for Frontline Defenders initiative on Sept. 3, offering discounted access to its cybersecurity platform plus training and technical support to resource-constrained defenders including state and local governments. The commitment is subsidized access over six months, not a grant or a dedicated fund. About 2,000 organizations already use the platform. Link

💰 POWER & CAPITAL

California Sends Data Center Ratepayer Bills To Newsom: SB 886 (Padilla) and AB 2383 (Zbur) — the rate-class deal struck hours before adjournment — passed on party lines and are now enrolled, with AB 2383 contingent on SB 886 becoming law. Lawmakers also sent Newsom AB 2619 and AB 1577, mandating annual water and energy reporting from large data centers. A grid-planning estimate put data center-driven transmission upgrade costs in PG&E territory as high as $1.8 billion. Newsom has until the end of September to act. Link

Nvidia Agrees To Buy Hugging Face For Almost $13 Billion: Nvidia signed a definitive agreement on Sept. 2, about $11.9 billion to stockholders plus up to $1 billion in equity retention, and says it will keep the platform open. The deal is expected to close in the first half of 2027 subject to regulatory approvals, putting a merger review of the AI developer ecosystem in front of antitrust agencies. Link

Digitize Dispatch is read by lobbyists, government affairs, policy, and regulatory professionals tracking AI legislation, regulation, and policy developments. Put your brand in front of the people shaping how organizations respond to AI policy.
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