House Study Bill 294 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY BILL BY CHAIRPERSON SORENSEN) A BILL FOR An Act relating to artificial intelligence, including the use 1 of artificial intelligence to create materials related to 2 elections and protections in interactions with artificial 3 intelligence systems, and making penalties applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1289YC (6) 91 dg/jh
H.F. _____ DIVISION I 1 MATERIALS RELATED TO ELECTIONS 2 Section 1. Section 68A.405, Code 2025, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 5. a. Published material generated through 5 the use of artificial intelligence and designed to expressly 6 advocate the nomination, election, or defeat of a candidate 7 for public office or the passage or defeat of a ballot issue 8 must contain a disclosure on the published material that the 9 published material was generated using artificial intelligence. 10 The disclosure must include the words this material was 11 generated using artificial intelligence. 12 b. For purposes of this subsection, artificial 13 intelligence means a machine-based system that can, for a 14 given set of human-defined objectives, make predictions, 15 recommendations, or decisions influencing real or virtual 16 environments. 17 c. The board shall adopt rules for the implementation of 18 this subsection. 19 d. A disclosure made in compliance with this subsection 20 does not preclude a private right of action arising out of the 21 publication of published material generated through the use of 22 artificial intelligence. 23 DIVISION II 24 PROTECTIONS IN INTERACTIONS WITH ARTIFICIAL INTELLIGENCE 25 SYSTEMS 26 Sec. 2. NEW SECTION . 554I.1 Definitions. 27 As used in this chapter: 28 1. a. Algorithmic discrimination means any use of an 29 artificial intelligence system that results in unfavorable 30 treatment due to an individual or group of individuals actual 31 or perceived age, race, creed, color, sex, sexual orientation, 32 national origin, religion, or disability. 33 b. Algorithmic discrimination does not include the offer, 34 license, or use of an artificial intelligence system for the 35 -1- LSB 1289YC (6) 91 dg/jh 1/ 21
H.F. _____ sole purpose of performing any of the following: 1 (1) Testing to identify, mitigate, or prevent 2 discrimination or otherwise ensure compliance with state or 3 federal law. 4 (2) Expanding an applicant, customer, or participant pool 5 to increase diversity or redress historic discrimination. 6 (3) Any act or omission by or on behalf of a private club 7 or other establishment not in fact open to the public, as 8 established in the federal Civil Rights Act of 1964, Pub. L. 9 No. 88-352, as amended. 10 2. Artificial intelligence system means any machine-based 11 system that, for any explicit or implicit objective, infers 12 from the inputs the system receives to generate outputs, 13 including content, decisions, predictions, or recommendations, 14 that can influence physical or virtual environments. 15 3. Consequential decision means any decision that has a 16 material legal or similarly significant effect on the provision 17 or denial of any of the following to an individual: 18 a. A pardon, parole, probation, or release. 19 b. Enrollment in education or an educational opportunity. 20 c. Employment. 21 d. A financial or lending service. 22 e. An essential government service. 23 f. A health care service, as health care is defined in 24 section 144B.1. 25 g. Insurance. 26 h. A legal service. 27 4. Deployer means a person doing business in this state 28 that uses a high-risk artificial intelligence system. 29 5. Developer means a person doing business in this state 30 that develops or intentionally and substantially modifies a 31 high-risk artificial intelligence system. 32 6. a. High-risk artificial intelligence system means any 33 artificial intelligence system that makes, or is a factor that 34 would likely alter the outcome of, a consequential decision. 35 -2- LSB 1289YC (6) 91 dg/jh 2/ 21
H.F. _____ b. High-risk artificial intelligence system does not 1 include any of the following: 2 (1) An artificial intelligence system that is only intended 3 to do any of the following: 4 (a) Perform a narrow procedural task. 5 (b) Improve the result of a previously completed human 6 activity. 7 (c) Perform a preparatory task relevant to a consequential 8 decision. 9 (d) Detect any decision-making pattern or any deviation 10 from a preexisting decision-making pattern. 11 (2) Antifraud technology. 12 (3) Antimalware technology. 13 (4) Antivirus technology. 14 (5) Calculators. 15 (6) Cybersecurity technology. 16 (7) Databases. 17 (8) Data storage technology. 18 (9) Firewalls. 19 (10) Internet domain registration technology. 20 (11) Internet website loading technology. 21 (12) Networking. 22 (13) Search engine or similar technology. 23 (14) Spam and robocall filtering technology. 24 (15) Spellchecking. 25 (16) Spreadsheets. 26 (17) Web caching technology. 27 (18) Web hosting technology. 28 (19) Any technology that communicates in natural language 29 for the purpose of providing users with information, making 30 referrals or recommendations, answering questions, or 31 generating other content, and that is subject to an accepted 32 use policy that prohibits generating content that is unlawful. 33 7. Intentional and substantial modification or 34 intentionally and substantially modifies means a deliberate 35 -3- LSB 1289YC (6) 91 dg/jh 3/ 21
H.F. _____ change made to an artificial intelligence system that 1 materially increases the risk of algorithmic discrimination. 2 8. Trade secret means the same as defined in section 3 550.2. 4 Sec. 3. NEW SECTION . 554I.2 Algorithmic discrimination 5 prohibited. 6 1. a. A developer shall use reasonable care to protect 7 individuals from any known or reasonably foreseeable risks 8 of algorithmic discrimination arising from the intended 9 and contracted uses of the developers high-risk artificial 10 intelligence system. 11 b. There is a rebuttable presumption that a developer used 12 reasonable care as required under this section if the developer 13 complied with subsections 2 through 8 and any additional 14 requirements established in rules adopted by the attorney 15 general pursuant to section 554I.7. 16 2. A developer shall make all of the following available to 17 a deployer or other developer that uses or intends to use the 18 developers high-risk artificial intelligence system: 19 a. A general statement describing the reasonably foreseeable 20 uses and known harmful or inappropriate uses of the high-risk 21 artificial intelligence system. 22 b. Documentation for all of the following: 23 (1) Summaries of the types of data used to train the 24 high-risk artificial intelligence system. 25 (2) The known or reasonably foreseeable limitations of 26 the high-risk artificial intelligence system including but 27 not limited to the known or reasonably foreseeable risks of 28 algorithmic discrimination arising from the intended use of the 29 high-risk artificial intelligence system. 30 (3) The purpose and intended uses of the high-risk 31 artificial intelligence system. 32 (4) The intended outputs of the high-risk artificial 33 intelligence system and how to understand the outputs. 34 (5) The intended benefits of the high-risk artificial 35 -4- LSB 1289YC (6) 91 dg/jh 4/ 21
H.F. _____ intelligence system. 1 (6) How the high-risk artificial intelligence system 2 was evaluated for performance and mitigation of algorithmic 3 discrimination before the high-risk artificial intelligence 4 system was sold, leased, licensed, given, or otherwise made 5 available to the deployer or other developer. 6 (7) The actions or processes the deployer implemented to 7 ensure the quality and consistency of training datasets, the 8 measures used to examine the suitability of data sources, the 9 measures used to evaluate possible biases in the training 10 datasets and data sources, and the measures used to mitigate 11 possible biases in training datasets and data sources. 12 (8) The measures the developer took to mitigate any known 13 or reasonably foreseeable risks of algorithmic discrimination 14 that may arise from using the high-risk artificial intelligence 15 system. 16 (9) How the high-risk artificial intelligence system 17 should be used, should not be used, and should be monitored 18 when the high-risk artificial intelligence system is used to 19 make, or is a factor that would likely alter the outcome of, a 20 consequential decision. 21 (10) Instructions that are reasonably necessary to assist 22 a deployer in monitoring the performance of the high-risk 23 artificial intelligence system for any risk of algorithmic 24 discrimination. 25 3. a. A developer that offers, sells, leases, licenses, 26 gives, or otherwise makes a high-risk artificial intelligence 27 system available to a deployer shall provide documentation 28 and information to the deployer necessary for the deployer to 29 complete an impact assessment under section 554I.3. Materials 30 and data include but are not limited to model cards, dataset 31 cards, and other impact assessments. 32 b. This subsection shall not apply if the deployer is 33 affiliated with the developer that is providing the high-risk 34 artificial intelligence system. 35 -5- LSB 1289YC (6) 91 dg/jh 5/ 21
H.F. _____ 4. A developer shall make a statement available in a manner 1 that is clear and readily available on the developers internet 2 site or in a public use case inventory that includes a summary 3 of all of the following: 4 a. The types of high-risk artificial intelligence systems 5 the developer has developed or intentionally and substantially 6 modified and is currently making generally available to 7 deployers. 8 b. How the developer manages known or reasonably foreseeable 9 risks of algorithmic discrimination arising from development 10 or intentional and substantial modification of the types 11 of high-risk artificial intelligence systems described in 12 paragraph a . 13 5. Each developer shall update the statement described 14 in subsection 4 as necessary to ensure that the statement 15 remains accurate, but no later than ninety days after the 16 developer develops or intentionally and substantially modifies 17 a high-risk artificial intelligence system. 18 6. a. A developer shall disclose to the attorney general 19 and to all known deployers or other developers of the high-risk 20 artificial intelligence system any known or foreseeable risks 21 of algorithmic discrimination arising from the intended uses of 22 the high-risk artificial intelligence system. 23 b. A disclosure under paragraph a shall be given to the 24 attorney general no later than ninety days after the earliest 25 of any of the following occurs: 26 (1) The developer discovers through the developers 27 ongoing testing and analysis that the developers high-risk 28 artificial intelligence system has been used and has caused or 29 is reasonably likely to have caused algorithmic discrimination. 30 (2) The developer receives from a deployer a credible report 31 that the high-risk artificial intelligence system has been used 32 and has caused algorithmic discrimination. 33 7. Subsections 2 through 6 do not require a developer to 34 disclose a trade secret, information protected under state or 35 -6- LSB 1289YC (6) 91 dg/jh 6/ 21
H.F. _____ federal law, or other confidential or proprietary information. 1 8. a. The attorney general may require that a developer 2 disclose to the attorney general any statement or documentation 3 described in subsection 2 if the statement or documentation is 4 relevant to an investigation conducted by the attorney general 5 regarding a violation of this chapter. 6 b. To the extent that a statement or documentation requested 7 by the attorney general pursuant to paragraph a includes 8 proprietary information or a trade secret, the statement 9 or documentation is exempt from disclosure. The developer 10 may designate the statement or documentation as including 11 proprietary information or a trade secret. 12 c. To the extent that a statement or documentation 13 requested by the attorney general pursuant to paragraph a 14 includes information subject to attorney-client privilege or 15 work-product protection, the disclosure does not constitute a 16 waiver of the privilege or protection. 17 Sec. 4. NEW SECTION . 554I.3 Impact assessments. 18 1. A deployer shall use reasonable care to protect 19 individuals from any known or reasonably foreseeable risks of 20 algorithmic discrimination. In any enforcement action brought 21 by the attorney general, there is a rebuttable presumption that 22 a deployer used reasonable care as required under this section 23 if the deployer complied with subsections 2 through 7 and any 24 additional requirements established in rules adopted by the 25 attorney general pursuant to section 554I.7. 26 2. a. A deployer shall implement a risk management 27 policy and program to govern the deployers use of high-risk 28 artificial intelligence systems. 29 b. The risk management policy and program shall specify 30 and incorporate the principles, processes, and personnel that 31 the deployer uses to identify, document, and mitigate known or 32 reasonably foreseeable risks of algorithmic discrimination. 33 c. The risk management program shall be an iterative process 34 that is planned, implemented, and regularly and systematically 35 -7- LSB 1289YC (6) 91 dg/jh 7/ 21
H.F. _____ reviewed and updated for the duration of the deployers use of 1 high-risk artificial intelligence systems. 2 d. Each risk management policy and program shall consider 3 all of the following: 4 (1) The guidance and standards established by all of the 5 following: 6 (a) Standards established in the most recent version of the 7 artificial intelligence risk management framework published 8 by the national institute of standards and technology of the 9 United States department of commerce. 10 (b) Standard ISO/IEC 42001 of the international 11 organization for standardization. 12 (c) A nationally or internationally recognized risk 13 management framework for artificial intelligence systems. 14 (d) Standards designated by the attorney general. 15 (2) The size and complexity of the deployer. 16 (3) The nature and scope of the high-risk artificial 17 intelligence system used by the deployer, including but not 18 limited to the intended uses of the high-risk artificial 19 intelligence system. 20 (4) The sensitivity and volume of data processed in 21 connection with the high-risk artificial intelligence systems 22 used by the deployer. 23 3. A risk management policy and program implemented 24 pursuant to this section may cover more than one high-risk 25 artificial intelligence system. 26 4. a. A deployer, or a third party contracted by the 27 deployer to use a high-risk artificial intelligence system, 28 shall complete an impact assessment for the high-risk 29 artificial intelligence system. 30 b. The impact assessment shall be completed no later than 31 ninety days after a high-risk artificial intelligence system 32 or an intentional and substantial modification of a high-risk 33 artificial intelligence system is available for use. 34 c. Each impact assessment shall, at a minimum, include all 35 -8- LSB 1289YC (6) 91 dg/jh 8/ 21
H.F. _____ of the following to the extent reasonably known by or available 1 to the deployer: 2 (1) A statement disclosing all of the following: 3 (a) The purpose for using the high-risk artificial 4 intelligence system. 5 (b) The context for using the high-risk artificial 6 intelligence system. 7 (c) The benefits afforded by using the high-risk artificial 8 intelligence system. 9 (2) An analysis of whether the use of the high-risk 10 artificial intelligence system poses any known or foreseeable 11 risk of algorithmic discrimination and, if so, the nature of 12 the algorithmic discrimination and the steps that have been 13 taken to mitigate the risks. 14 (3) A description of the categories of data the high-risk 15 artificial intelligence system processes as inputs and the 16 outputs the high-risk artificial intelligence system produces. 17 (4) Any metrics used to evaluate the performance and known 18 limitations of the high-risk artificial intelligence system. 19 (5) A description of any transparency measures taken 20 concerning the high-risk artificial intelligence system, such 21 as measures taken to disclose to individuals that the high-risk 22 artificial intelligence system is in use. 23 (6) A description of the post-use monitoring and user 24 safeguards provided concerning the high-risk artificial 25 intelligence system, such as the oversight process established 26 by the deployer to address issues arising from using the 27 high-risk artificial intelligence system. 28 (7) If the impact statement is being made subsequent to 29 an intentional and substantial modification to a high-risk 30 artificial intelligence system, a statement disclosing the 31 extent to which the high-risk artificial intelligence system 32 was used in a manner that was consistent with or varied from 33 the developers intended uses of the high-risk artificial 34 intelligence system. 35 -9- LSB 1289YC (6) 91 dg/jh 9/ 21
H.F. _____ d. A single impact statement may address a comparable set of 1 high-risk artificial intelligence systems used by a deployer. 2 5. An impact assessment completed for the purpose of 3 complying with another applicable law or regulation shall 4 satisfy the requirements of this section if the impact 5 assessment is reasonably similar in scope and effect to an 6 impact assessment that would otherwise be completed pursuant to 7 this section. 8 6. A deployer shall maintain the most recently completed 9 impact assessment for a high-risk artificial intelligence 10 system as required under this section and relevant records 11 supporting the impact assessment for a period of at least three 12 years following the final use of the high-risk artificial 13 intelligence system. 14 7. A deployer shall review, at least annually, the 15 deployment of each high-risk artificial intelligence system 16 used by the deployer to ensure that the high-risk artificial 17 intelligence system is not causing algorithmic discrimination. 18 Sec. 5. NEW SECTION . 554I.4 Disclosures of artificial 19 intelligence system. 20 1. A deployer shall disclose to each individual that 21 interacts with the artificial intelligence system that the 22 individual is interacting with an artificial intelligence 23 system. Developers who make a high-risk artificial 24 intelligence system available in this state shall cooperate 25 with deployers to allow deployers to fulfill the requirements 26 of this subsection. 27 2. A disclosure under subsection 1 is not required in 28 circumstances in which it would be obvious to a reasonable 29 individual that the individual is interacting with an 30 artificial intelligence system. 31 Sec. 6. NEW SECTION . 554I.5 Exclusions. 32 1. This chapter shall not be construed to restrict a 33 developers, deployers, or other persons ability to do any 34 of the following: 35 -10- LSB 1289YC (6) 91 dg/jh 10/ 21
H.F. _____ a. Comply with federal, state, or municipal law. 1 b. Comply with a civil, criminal, or regulatory inquiry, 2 investigation, subpoena, or summons by a federal, state, 3 municipal, or other governmental authority. 4 c. Cooperate with a law enforcement agency concerning 5 conduct or activity that a developer, deployer, or other person 6 reasonably and in good faith believes may violate federal, 7 state, or municipal law. 8 d. Investigate, establish, exercise, prepare for, or defend 9 legal claims. 10 e. Take immediate steps to protect an interest that is 11 essential for the life or physical safety of an individual. 12 f. Engage in public or peer-reviewed scientific or 13 statistical research in the public interest that adheres to 14 all other applicable ethics and privacy laws and is conducted 15 in accordance with 45 C.F.R. pt. 46, as amended, or other 16 relevant requirements established by the federal food and drug 17 administration. 18 g. Conduct research, testing, and development activities 19 regarding an artificial intelligence system, other than testing 20 conducted under real-world conditions, before the artificial 21 intelligence system is placed on the market, used, or otherwise 22 put into service. 23 h. Effectuate a product recall. 24 i. Identify and repair technical errors that impair existing 25 or intended functionality in a computer system or an artificial 26 intelligence system. 27 j. Assist another developer, deployer, or person with any of 28 the requirements of this chapter. 29 2. This chapter does not apply to a developer, deployer, 30 or other person if the circumstances in which the high-risk 31 artificial intelligence system was developed, used, or 32 intentionally and substantially modified are described by any 33 of the following: 34 a. The high-risk artificial intelligence system has been 35 -11- LSB 1289YC (6) 91 dg/jh 11/ 21
H.F. _____ approved, authorized, certified, cleared, developed, or granted 1 by a federal agency and the deployer, developer, or other 2 person is described by any of the following: 3 (1) The person is acting under the authority of the 4 federal agency that approved, authorized, certified, cleared, 5 developed, or granted the high-risk artificial intelligence 6 system. 7 (2) The person is in compliance with standards established 8 by a federal agency for use of high-risk artificial 9 intelligence systems if the requirements imposed by those 10 standards are substantially similar or more restrictive than 11 the requirements of this chapter. 12 b. The developer, deployer, or other person is conducting 13 research to support an application for approval or 14 certification from a federal agency. 15 c. The developer, deployer, or other person is performing 16 work under or in connection with a contract with the United 17 States department of commerce, the United States department of 18 defense, or the national aeronautics and space administration, 19 unless the developer, deployer, or other person is performing 20 work on a high-risk artificial intelligence system that is used 21 to make, or is a factor that would likely alter the outcome of, 22 a decision concerning employment or housing. 23 d. The developer, deployer, or other person is a covered 24 entity within the meaning of the Health Insurance Portability 25 and Accountability Act of 1996, Pub. L. No. 104-191, as 26 amended, and is providing health care recommendations that 27 are generated by an artificial intelligence system, require 28 a health care provider to take action to implement the 29 recommendations, and are not likely to alter the outcome of a 30 consequential decision. 31 3. This chapter does not apply to any artificial 32 intelligence system that is acquired by or for the federal 33 government, a federal agency, or federal department unless 34 the artificial intelligence system is a high-risk artificial 35 -12- LSB 1289YC (6) 91 dg/jh 12/ 21
H.F. _____ intelligence system used to make, or is a factor that would 1 likely alter the outcome of, a decision concerning employment 2 or housing. 3 4. A developer, deployer, or other person shall have the 4 burden to prove an action qualifies for an exclusion under this 5 section. 6 Sec. 7. NEW SECTION . 554I.6 Enforcement. 7 1. The attorney general shall have exclusive authority to 8 enforce this chapter. 9 2. Prior to initiating any action for a violation of this 10 chapter, the attorney general shall issue a notice of violation 11 to the developer, deployer, or other person who allegedly 12 violated the chapter. The notice shall contain all of the 13 following: 14 a. A specific description of the alleged violation. 15 b. The actions the developer, deployer, or other person must 16 take to cure the violation. 17 3. The attorney general may bring an action for the alleged 18 violation if the alleged violation is not cured within ninety 19 days of the date the developer, deployer, or other person 20 received the notice of violation. 21 4. A violation of the requirements established in this 22 chapter is an unlawful practice under section 714.16. 23 5. In any action commenced by the attorney general to 24 enforce this chapter, it is an affirmative defense that the 25 developer, deployer, or other person is described by all of the 26 following: 27 a. The developer, deployer, or other person discovered and 28 cured a violation of this chapter as a result of any of the 29 following: 30 (1) Feedback that the developer, deployer, or other 31 person encourages deployers or other users to provide to the 32 developer, deployer, or other person. 33 (2) Adversarial testing or red teaming, as those terms are 34 defined or used by the national institute of standards and 35 -13- LSB 1289YC (6) 91 dg/jh 13/ 21
H.F. _____ technology. 1 (3) An internal review process. 2 b. The developer, deployer, or other person is otherwise in 3 compliance with any of the following: 4 (1) The latest version of the artificial intelligence risk 5 management framework as published by the national institute 6 of standards and technology and standard ISO/IEC 42001 of the 7 international organization for standardization. 8 (2) A nationally or internationally recognized risk 9 management framework for artificial intelligence systems, if 10 the requirements imposed by those standards are substantially 11 similar or more restrictive than the requirements of this 12 chapter. 13 (3) A risk management framework for artificial intelligence 14 systems that the attorney general designated. 15 6. A developer, deployer, or other person bears the burden 16 of demonstrating to the attorney general that the requirements 17 of subsection 5 have been satisfied. 18 7. a. Prior to initiating any action under this chapter, 19 the attorney general shall consult with the department of 20 health and human services to determine whether any complaint 21 has been filed that is founded on the same act or omission that 22 constitutes a violation of this chapter. 23 b. The attorney general shall not initiate any action to 24 enforce the provisions of this chapter if a complaint has been 25 filed with the department of health and human services relating 26 to the act or omission that constitutes a violation of this 27 chapter unless the complaint has been fully adjudicated or 28 resolved. 29 8. This chapter shall not preempt or otherwise affect any 30 right, claim, remedy, presumption, or defense available at 31 law or in equity. Any rebuttable presumption or affirmative 32 defense established under this chapter shall apply only to an 33 enforcement action brought by the attorney general pursuant to 34 this chapter and shall not apply to any right, claim, remedy, 35 -14- LSB 1289YC (6) 91 dg/jh 14/ 21
H.F. _____ presumption, or defense available at law or in equity. 1 9. The attorney general shall post on its internet site 2 how to properly file a complaint for a violation under this 3 chapter. 4 10. This section does not provide a basis for a private 5 right of action for violations of this chapter or any other 6 law. 7 Sec. 8. NEW SECTION . 554I.7 Attorney general rulemaking 8 authority. 9 The attorney general shall adopt rules pursuant to chapter 10 17A to implement this chapter. 11 Sec. 9. Section 714.16, subsection 2, Code 2025, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . r. It is an unlawful practice for a person 14 to violate any of the provisions of chapter 554I. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanations substance by the members of the general assembly. 18 This bill relates to artificial intelligence (AI), including 19 the use of artificial intelligence to create materials related 20 to elections and protections in interactions with AI systems. 21 DIVISION I MATERIALS RELATED TO ELECTIONS. The bill 22 requires that published material generated through the use 23 of AI, defined in this division, and designed to expressly 24 advocate the nomination, election, or defeat of a candidate for 25 public office or the passage or defeat of a ballot issue to 26 include a disclosure that the published material was generated 27 using AI. The disclosure must include the words this material 28 was generated using artificial intelligence. A disclosure 29 made in compliance with the bill does not preclude a private 30 right of action arising out of the publication of published 31 material generated through the use of AI. 32 By operation of law, a person who willfully violates the 33 division of the bill is guilty of a serious misdemeanor. A 34 serious misdemeanor is punishable by confinement for no more 35 -15- LSB 1289YC (6) 91 dg/jh 15/ 21
H.F. _____ than one year and a fine of at least $430 but not more than 1 $2,560. 2 DIVISION II PROTECTIONS IN INTERACTIONS WITH ARTIFICIAL 3 INTELLIGENCE SYSTEMS. The bill defines algorithmic 4 discrimination as any use of an AI system that results 5 in unfavorable treatment due to an individual or group of 6 individuals actual or perceived age, race, creed, color, sex, 7 sexual orientation, national origin, religion, or disability. 8 The bill lists several circumstances which do not constitute 9 algorithmic discrimination. 10 The bill defines artificial intelligence system as 11 any machine-based system that, for any explicit or implicit 12 objective, infers from the inputs the system receives to 13 generate outputs, including but not limited to content, 14 decisions, predictions, or recommendations, that can influence 15 physical or virtual environments. 16 The bill defines consequential decision as any decision 17 that has a material legal or similarly significant effect on 18 the provision or denial of a pardon, parole, probation, or 19 release; an education enrollment or educational opportunity; 20 employment; a financial or lending service; an essential 21 government service; a health care service; insurance; or a 22 legal service. 23 The bill defines deployer as a person doing business in 24 this state that uses a high-risk AI system. 25 The bill defines developer as a person doing business in 26 this state that develops or intentionally and substantially 27 modifies a high-risk AI system. 28 The bill defines high-risk artificial intelligence system 29 as any AI system that makes, or is a factor that would likely 30 alter the outcome of, a consequential decision. The bill lists 31 several systems that do not constitute a high-risk artificial 32 intelligence system. 33 The bill defines intentional and substantial modification 34 or intentionally and substantially modifies as a deliberate 35 -16- LSB 1289YC (6) 91 dg/jh 16/ 21
H.F. _____ change made to an AI system that materially increases the risk 1 of algorithmic discrimination. 2 The bill defines trade secret as information, including 3 but not limited to a formula, pattern, compilation, program, 4 device, method, technique, or process that derives independent 5 economic value, actual or potential, from not being generally 6 known to, and not being readily ascertainable by proper means 7 by a person able to obtain economic value from its disclosure 8 or use; and is the subject of efforts that are reasonable under 9 the circumstances to maintain its secrecy. 10 The bill requires developers to use reasonable care to 11 protect individuals from any known or reasonably foreseeable 12 risks of algorithmic discrimination arising from the 13 intended and contracted uses of the developers high-risk AI 14 system. The bill creates a rebuttable presumption that a 15 developer used reasonable care if the developer complied with 16 certain requirements detailed in the bill and any additional 17 requirements established in rules adopted by the attorney 18 general. 19 The bill requires a developer to make certain statements, 20 documentation, and summaries related to the high-risk AI 21 system, as detailed in the bill, available to a deployer or 22 other developer that uses or intends to use the developers 23 high-risk AI system. 24 The bill requires a developer, if the developer offers, 25 sells, leases, licenses, gives, or otherwise makes a high-risk 26 AI system available to a deployer, to provide documentation 27 and information to the deployer necessary for the deployer to 28 complete an impact assessment. Documentation and information 29 includes but is not limited to model cards, dataset cards, and 30 other impact assessments. This requirement does not apply if 31 the deployer is affiliated with the developer that is providing 32 the high-risk AI system. 33 The bill requires a developer to make a statement available 34 in a manner that is clear and readily available on the 35 -17- LSB 1289YC (6) 91 dg/jh 17/ 21
H.F. _____ developers internet site or in a public use case inventory 1 that includes a summary of the types of high-risk AI systems 2 the developer has developed or intentionally and substantially 3 modified and is currently making generally available to 4 deployers, and how the developer manages known or reasonably 5 foreseeable risks of algorithmic discrimination arising from 6 development or intentional and substantial modification of the 7 types of high-risk AI systems. The bill requires developers to 8 update the statement as necessary to ensure that the statement 9 remains accurate, but no later than 90 days after the developer 10 develops or intentionally and substantially modifies an AI 11 system. 12 The bill requires developers to disclose to the attorney 13 general and to all known deployers or other developers of 14 the high-risk AI system any known or foreseeable risks of 15 algorithmic discrimination arising from the intended uses of 16 the high-risk AI system. The disclosure must be given to the 17 attorney general no later than 90 days after the developer 18 discovers through the developers ongoing testing and analysis 19 that the developers high-risk AI system has been used and 20 has caused or is reasonably likely to have caused algorithmic 21 discrimination; or the developer receives from a deployer a 22 credible report that the high-risk AI system has been used and 23 has caused algorithmic discrimination, whichever is earlier. 24 The bill does not require a developer to disclose a trade 25 secret, information protected under state or federal law, or 26 other confidential or proprietary information. 27 The bill authorizes the attorney general to require a 28 developer to disclose to the attorney general any statement 29 or documentation the bill requires the developer to make 30 available to deployers and other developers if the statement 31 or documentation is relevant to an investigation conducted 32 by the attorney general regarding a violation of the bill. 33 The bill makes statements and documentation provided to the 34 attorney general exempt from disclosure to the extent the 35 -18- LSB 1289YC (6) 91 dg/jh 18/ 21
H.F. _____ statement or documentation includes any proprietary information 1 or any trade secret. The developer may designate the statement 2 or documentation as including proprietary information or a 3 trade secret. Disclosures of statements and documents to 4 the attorney general that include information subject to 5 attorney-client privilege or work-product protection do not 6 constitute a waiver of the privilege or protection. 7 The bill requires deployers to use reasonable care to 8 protect individuals from any known or reasonably foreseeable 9 risks of algorithmic discrimination. In any enforcement 10 action brought by the attorney general, there is a rebuttable 11 presumption that a deployer used reasonable care if the 12 deployer implemented a risk management policy and program as 13 detailed in the bill and complied with the bills requirements 14 regarding impact statements. 15 The bill requires deployers, or a third party contracted by 16 a deployer to use a high-risk AI system, to complete an impact 17 assessment for the high-risk AI system. Requirements for when 18 the impact assessment must be completed and the contents of the 19 impact assessment are detailed in the bill. 20 The bill requires deployers to maintain the most recently 21 completed impact assessment for a high-risk AI system and 22 relevant records supporting the impact assessment for a 23 period of at least three years following the final use of the 24 high-risk AI system. 25 The bill requires deployers to, at least annually, review 26 the deployment of each high-risk AI system used by the 27 deployer to ensure that the high-risk AI system is not causing 28 algorithmic discrimination. 29 The bill requires deployers to disclose to each individual 30 that interacts with the AI system that the individual is 31 interacting with an AI system. Developers who make a high-risk 32 AI system available in this state must cooperate with deployers 33 to allow deployers to fulfill the bills requirements. A 34 disclosure that an individual is interacting with an AI system 35 -19- LSB 1289YC (6) 91 dg/jh 19/ 21
H.F. _____ is not required in circumstances in which it would be obvious 1 to a reasonable individual that the individual is interacting 2 with an AI system. 3 The bill clarifies that its provisions do not restrict a 4 developers, deployers, or other persons abilities to perform 5 certain actions as detailed in the bill. 6 The bill clarifies that its provisions do not apply to a 7 developer, deployer, or other person that develops, uses, or 8 intentionally and substantially modifies a high-risk AI system 9 in certain circumstances detailed in the bill. 10 The bill does not apply to an AI system that is acquired by 11 or for the federal government, a federal agency, or a federal 12 department unless the AI system is a high-risk AI system used 13 to make, or is a factor that would likely alter the outcome of, 14 a decision concerning employment or housing. 15 The bill makes a developer, deployer, or other person 16 responsible for proving an action qualifies for an exclusion 17 from the bills provisions. 18 The bill provides the attorney general with exclusive 19 authority to enforce the bills provisions. 20 The bill requires, prior to initiating any action for a 21 violation of the bills provisions, the attorney general to 22 issue a notice of violation to the developer, deployer, or 23 other person who allegedly violated the bills provisions. 24 The notice must contain a specific description of the alleged 25 violation and the actions the developer, deployer, or other 26 person must take to cure the violation. The bill authorizes 27 the attorney general to bring an action for the alleged 28 violation if the alleged violation is not cured within 90 days 29 of the date the developer, deployer, or other person received 30 the notice of violation. 31 The bill details under what circumstances a developer, 32 deployer, or other person has an affirmative defense to an 33 alleged violation. The developer, deployer, or other person 34 bears the burden of demonstrating to the attorney general that 35 -20- LSB 1289YC (6) 91 dg/jh 20/ 21
H.F. _____ the person meets the requirements for an affirmative defense. 1 The bill requires, prior to initiating any action under the 2 bills provisions, the attorney general to consult with the 3 department of health and human services (HHS) to determine 4 whether any complaint has been filed that is founded on the 5 same act or omission that constitutes a violation of the bills 6 provisions. The attorney general is prohibited from initiating 7 an action to enforce the bills provisions if a complaint has 8 been filed with HHS relating to the same act or omission that 9 constitutes a violation of the bills provisions unless the 10 complaint has been fully adjudicated or resolved. 11 The bill does not preempt or otherwise affect any right, 12 claim, remedy, presumption, or defense available at law or in 13 equity. Any rebuttable presumption or affirmative defense 14 established under the bills provisions applies only to an 15 enforcement action brought by the attorney general and does 16 not apply to any right, claim, remedy, presumption, or defense 17 available at law or in equity. 18 The bill requires the attorney general to post on its 19 internet site how to properly file a complaint for a violation 20 of the bills provisions. 21 The bill does not provide a basis for a private right of 22 action for violations of the bills provisions or any other 23 law. 24 The bill requires the attorney general to adopt rules to 25 implement the bills provisions. 26 A violation of this division of the bill is an unlawful 27 practice under Code section 714.16. Several types of remedies 28 are available if a court finds that a person has committed an 29 unlawful practice, including injunctive relief, disgorgement of 30 moneys or property, and a civil penalty not to exceed $40,000 31 per violation. 32 -21- LSB 1289YC (6) 91 dg/jh 21/ 21