Subcommittee backs substitute for HB 7 97 to create voluntary AI verification marketplace overseen by VITA

Chairman Sharon Hayes presented a substitute to House Bill 7 97, which would direct the Virginia Information Technology Agency (VITA) to authorize and oversee a voluntary marketplace of independent verification organizations (IVOs) that evaluate AI systems against state‑set safety and risk outcomes.

Hayes described the model as voluntary and market‑driven: companies could seek verification from licensed IVOs and display a verification 'seal' to signal compliance with higher safety standards. VITA (through the state CIO) would license and oversee IVOs, investigate conflicts of interest, and could revoke licenses of IVOs found not to be in good standing.

Supporters at the hearing included Ross Grogg of Kemper Consulting on behalf of Fathom, who said Fathom is pursuing similar market approaches in other states and praised Virginia’s model for real‑time expert oversight. Opponents and signees of written testimony — including TechNet, the Information Technology Industry Council and others — warned that a state‑run verification regime could create a patchwork of standards, increase compliance costs, and duplicate internationally recognized standard‑setting bodies.

Committee members asked whether the marketplace would allow multiple verification organizations; Hayes said VITA could approve multiple IVOs and that the marketplace was not limited to a single organization. The substitute was moved, and the transcript records the substitute being reported and referred to Appropriations on a recorded vote of 6 to 2.

Next steps: HB 7 97 will proceed to Appropriations for fiscal review.