State Legislatures Attempt to Restrict Local Governments from Regulating AI

As artificial intelligence (AI) use and data center construction continue to make headlines, state legislators are introducing controversial bills designed to expand the use of AI – and prevent local governments from restricting its use.

As of late April, LSSC is tracking 12 AI bills across nine states. Eight of these bills were introduced in 2026, while 4 were introduced in 2025. Of the 12 bills, two are actively moving (Arizona HB 2456 and New Hampshire HB 1124) and four have failed (New Hampshire CACR6, New Hampshire SB 1725, Florida HB 1395 and Florida SB 482). This is the first year that LSSC has tracked AI-related bills. 

The 12 AI bills largely fall into three categories:

  • Bills protecting the ‘right to compute’ – which is defined by conservative policy organizations as “protecting the ability of researchers, entrepreneurs, and innovators to develop and use AI tools” without permission from the government.

  • Bills restricting engagement with foreign-run AI.

  • Bills specifically focused on local regulation of AI.

Right to Compute 

  • Five of the proposed 12 AI bills fall into this category: New Hampshire CACR6, New Hampshire HB 1124, Ohio HB 392, South Carolina H 4657, and Virginia HB 1521. 

  • All five bills share similarities (and in some cases, identical language) – and most of them are based on a model bill from the conservative American Legislative Exchange Council (ALEC).

  • Most of these bills would impose a very high legal standard on any local government “action” that would restrict AI. Government “action” includes any law, ordinance, regulation, rule, policy, fee, condition, or test. 

Foreign-run AI

  • Three bills have been proposed in this realm: Georgia SB 104, Florida HB 1395, and Florida SB 482. 

  • Each of these bills contains positive aspects (such as individual privacy protections) but also includes preemptive components that would prohibit local governments from engaging in any way with an AI system that is controlled or owned by a public or private entity from a foreign country.

Local regulation of AI

  • Both Illinois HB 5221 and New Hampshire HB 1725 (which has since failed) would explicitly preempt all local regulation related to AI. 

  • The Illinois bill goes even further by overtly denying the home rule powers granted to municipalities by the Illinois State Constitution. Language in the bill states that: “The regulation of the processing of personal data by controllers or processors is an exclusive power and function of the State. A home rule unit may not regulate the processing of personal data by controllers or processors. This Section is a denial and limitation of home rule powers under [the State Constitution].”

As state legislators continue to advance preemptive AI bills, many states are also seeking to limit or outright ban the construction of data centers. LSSC does not categorize these actions as ‘abusive preemption’ and therefore does not track these bills specifically. However, some bills related to data center development have received criticism for eliminating local control. 

LSSC monitors abusive preemption bills in all 50 states and will release an end of legislative session report during summer 2026. If you have questions about any of the bills in this update, or about any of the broader preemption trends our team is tracking, please contact media@supportdemocracy.org. We’d be happy to get you connected with the right expert.

Adam Polaski