Duplex allowance, AI regulation packed into $325 million Senate bill

Senate Democrats unveiled a $325 economic development bill (S. 3178) on July 16 that installs guardrails for AI developers, enables duplex construction by right on all residential lots, gives municipalities control over the volume of available alcohol licenses, and tackles safety regulations for scooters and e-bikes.

Slated for floor debate on July 23, the legislation incorporates $100 million for the defense sector, $75 million for AI development and application, $25 million for robotics technology, and $100 million in “bridge funding” to support research at public higher education institutions that are facing federal cuts.

Cities and towns must currently petition the Legislature to expand the availability of alcohol licenses for on-site consumption at bars and restaurants. The bill would instead enable municipalities to set their own caps.

Under the bill, major AI developers, described by senators as “large frontier developers,” must publish safety frameworks aimed at reducing risks of “potential catastrophes and critical safety incidents,” according to a Senate fact sheet. The attorney general could sue developers for violating the safety requirements.

“These guardrails will keep us safe, but also keep us competitive,” Sen. Barry Finegold, co-chair of the Economic Development and Emerging Technologies Committee, said during a press conference Thursday in the Senate Reading Room.

The bill also calls for a new commission to focus on AI regulation and safety issues, such as hiring third-party auditors to ensure compliance with safety frameworks.

In an effort to alleviate the state’s housing crunch, the bill allows for automatic two-family zoning. Sen. Julian Cyr, co-chair of the Housing Committee, called the provision a “simple but incredibly meaningful reform.”

“Duplexes are part of what we often call missing middle housing, and we’ve been missing it for quite a while,” Cyr said.

A bill summary says the duplex provision “vastly” expands the potential number of housing units in the state, while also noting the new allowance is “subject to reasonable limitations related to septic requirements, site plan reviews, and local guidelines and size limitations.”

Echoing the House’s approach to regulate “micromobility” devices, the Senate bill sets safety standards for safety equipment like brake lights and helmets, as well as age limits depending on a device’s speed capability.