Bill > HSB294

Introduced Session

This bill relates to artificial intelligence (AI), including the use of artificial intelligence to create materials related to elections and protections in interactions with AI systems. DIVISION I —— MATERIALS RELATED TO ELECTIONS. The bill requires that published material generated through the use of AI, defined in this division, and designed to expressly advocate the nomination, election, or defeat of a candidate for public office or the passage or defeat of a ballot issue to include a disclosure that the published material was generated using AI. The disclosure must include the words “this material was generated using artificial intelligence”. A disclosure made in compliance with the bill does not preclude a private right of action arising out of the publication of published material generated through the use of AI. By operation of law, a person who willfully violates the division of the bill is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more H.F. _____ than one year and a fine of at least $430 but not more than $2,560. DIVISION II —— PROTECTIONS IN INTERACTIONS WITH ARTIFICIAL INTELLIGENCE SYSTEMS. The bill defines “algorithmic discrimination” as any use of an AI system that results in unfavorable treatment due to an individual or group of individuals’ actual or perceived age, race, creed, color, sex, sexual orientation, national origin, religion, or disability. The bill lists several circumstances which do not constitute “algorithmic discrimination”. The bill defines “artificial intelligence system” as any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including but not limited to content, decisions, predictions, or recommendations, that can influence physical or virtual environments. The bill defines “consequential decision” as any decision that has a material legal or similarly significant effect on the provision or denial of a pardon, parole, probation, or release; an education enrollment or educational opportunity; employment; a financial or lending service; an essential government service; a health care service; insurance; or a legal service. The bill defines “deployer” as a person doing business in this state that uses a high-risk AI system. The bill defines “developer” as a person doing business in this state that develops or intentionally and substantially modifies a high-risk AI system. The bill defines “high-risk artificial intelligence system” as any AI system that makes, or is a factor that would likely alter the outcome of, a consequential decision. The bill lists several systems that do not constitute a “high-risk artificial intelligence system”. The bill defines “intentional and substantial modification” or “intentionally and substantially modifies” as a deliberate H.F. _____ change made to an AI system that materially increases the risk of algorithmic discrimination. The bill defines “trade secret” as information, including but not limited to a formula, pattern, compilation, program, device, method, technique, or process that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by a person able to obtain economic value from its disclosure or use; and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The bill requires developers to use reasonable care to protect individuals from any known or reasonably foreseeable risks of algorithmic discrimination arising from the intended and contracted uses of the developer’s high-risk AI system. The bill creates a rebuttable presumption that a developer used reasonable care if the developer complied with certain requirements detailed in the bill and any additional requirements established in rules adopted by the attorney general. The bill requires a developer to make certain statements, documentation, and summaries related to the high-risk AI system, as detailed in the bill, available to a deployer or other developer that uses or intends to use the developer’s high-risk AI system. The bill requires a developer, if the developer offers, sells, leases, licenses, gives, or otherwise makes a high-risk AI system available to a deployer, to provide documentation and information to the deployer necessary for the deployer to complete an impact assessment. Documentation and information includes but is not limited to model cards, dataset cards, and other impact assessments. This requirement does not apply if the deployer is affiliated with the developer that is providing the high-risk AI system. The bill requires a developer to make a statement available in a manner that is clear and readily available on the H.F. _____ developer’s internet site or in a public use case inventory that includes a summary of the types of high-risk AI systems the developer has developed or intentionally and substantially modified and is currently making generally available to deployers, and how the developer manages known or reasonably foreseeable risks of algorithmic discrimination arising from development or intentional and substantial modification of the types of high-risk AI systems. The bill requires developers to update the statement as necessary to ensure that the statement remains accurate, but no later than 90 days after the developer develops or intentionally and substantially modifies an AI system. The bill requires developers to disclose to the attorney general and to all known deployers or other developers of the high-risk AI system any known or foreseeable risks of algorithmic discrimination arising from the intended uses of the high-risk AI system. The disclosure must be given to the attorney general no later than 90 days after the developer discovers through the developer’s ongoing testing and analysis that the developer’s high-risk AI system has been used and has caused or is reasonably likely to have caused algorithmic discrimination; or the developer receives from a deployer a credible report that the high-risk AI system has been used and has caused algorithmic discrimination, whichever is earlier. The bill does not require a developer to disclose a trade secret, information protected under state or federal law, or other confidential or proprietary information. The bill authorizes the attorney general to require a developer to disclose to the attorney general any statement or documentation the bill requires the developer to make available to deployers and other developers if the statement or documentation is relevant to an investigation conducted by the attorney general regarding a violation of the bill. The bill makes statements and documentation provided to the attorney general exempt from disclosure to the extent the H.F. _____ statement or documentation includes any proprietary information or any trade secret. The developer may designate the statement or documentation as including proprietary information or a trade secret. Disclosures of statements and documents to the attorney general that include information subject to attorney-client privilege or work-product protection do not constitute a waiver of the privilege or protection. The bill requires deployers to use reasonable care to protect individuals from any known or reasonably foreseeable risks of algorithmic discrimination. In any enforcement action brought by the attorney general, there is a rebuttable presumption that a deployer used reasonable care if the deployer implemented a risk management policy and program as detailed in the bill and complied with the bill’s requirements regarding impact statements. The bill requires deployers, or a third party contracted by a deployer to use a high-risk AI system, to complete an impact assessment for the high-risk AI system. Requirements for when the impact assessment must be completed and the contents of the impact assessment are detailed in the bill. The bill requires deployers to maintain the most recently completed impact assessment for a high-risk AI system and relevant records supporting the impact assessment for a period of at least three years following the final use of the high-risk AI system. The bill requires deployers to, at least annually, review the deployment of each high-risk AI system used by the deployer to ensure that the high-risk AI system is not causing algorithmic discrimination. The bill requires deployers to disclose to each individual that interacts with the AI system that the individual is interacting with an AI system. Developers who make a high-risk AI system available in this state must cooperate with deployers to allow deployers to fulfill the bill’s requirements. A disclosure that an individual is interacting with an AI system H.F. _____ is not required in circumstances in which it would be obvious to a reasonable individual that the individual is interacting with an AI system. The bill clarifies that its provisions do not restrict a developer’s, deployer’s, or other person’s abilities to perform certain actions as detailed in the bill. The bill clarifies that its provisions do not apply to a developer, deployer, or other person that develops, uses, or intentionally and substantially modifies a high-risk AI system in certain circumstances detailed in the bill. The bill does not apply to an AI system that is acquired by or for the federal government, a federal agency, or a federal department unless the AI system is a high-risk AI system used to make, or is a factor that would likely alter the outcome of, a decision concerning employment or housing. The bill makes a developer, deployer, or other person responsible for proving an action qualifies for an exclusion from the bill’s provisions. The bill provides the attorney general with exclusive authority to enforce the bill’s provisions. The bill requires, prior to initiating any action for a violation of the bill’s provisions, the attorney general to issue a notice of violation to the developer, deployer, or other person who allegedly violated the bill’s provisions. The notice must contain a specific description of the alleged violation and the actions the developer, deployer, or other person must take to cure the violation. The bill authorizes the attorney general to bring an action for the alleged violation if the alleged violation is not cured within 90 days of the date the developer, deployer, or other person received the notice of violation. The bill details under what circumstances a developer, deployer, or other person has an affirmative defense to an alleged violation. The developer, deployer, or other person bears the burden of demonstrating to the attorney general that H.F. _____ the person meets the requirements for an affirmative defense. The bill requires, prior to initiating any action under the bill’s provisions, the attorney general to consult with the department of health and human services (HHS) to determine whether any complaint has been filed that is founded on the same act or omission that constitutes a violation of the bill’s provisions. The attorney general is prohibited from initiating an action to enforce the bill’s provisions if a complaint has been filed with HHS relating to the same act or omission that constitutes a violation of the bill’s provisions unless the complaint has been fully adjudicated or resolved. The bill does not preempt or otherwise affect any right, claim, remedy, presumption, or defense available at law or in equity. Any rebuttable presumption or affirmative defense established under the bill’s provisions applies only to an enforcement action brought by the attorney general and does not apply to any right, claim, remedy, presumption, or defense available at law or in equity. The bill requires the attorney general to post on its internet site how to properly file a complaint for a violation of the bill’s provisions. The bill does not provide a basis for a private right of action for violations of the bill’s provisions or any other law. The bill requires the attorney general to adopt rules to implement the bill’s provisions. A violation of this division of the bill is an unlawful practice under Code section 714.16. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation.

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Other Sponsors (1)

Committee vote: Yeas, 18. Nays, 3. H.J. 545. (on 03/06/2025)

Official Document