HB3828 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 59th Legislature (20 24) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3828 By: Alonso-Sandoval and Pae COMMITTEE SUBSTITUTE An Act relating to state government; providing definitions; directing the Office of Management and Enterprise Services to conduct certain inventory; providing required information; directing inventory to be made publicly available; directing certain ongoing assessments be made of artificial intelligence systems; dire cting for development of certain policies and procedures; requiring certain policies be included; permitting revision of policies and procedures; requiring policies and procedures be posted; prohibiting the implementation of artific ial intelligence without following certain procedures or determinations; requiring the Administrative Office of the Courts to conduct certain inventory; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to b e codified in the Oklahoma Statutes as Section 10101 of Title 74, unless there is created a duplication in numbering, reads as follows: As used in this act: 1. "Artificial intelligence" means: HB3828 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. an artificial system that: (1) performs tasks under varying and unpredictable circumstances without significant human oversight or can learn from experience and improve such performance when exposed to data sets , (2) is developed in any context, including, but not limited to, software or physical hardware, and solves tasks requiring human-like perception, cognition, planning, learning, communication or physical action, or (3) is designed to: (a) think or act like a human, i ncluding, but not limited to, a cognitive architecture or neural network, or (b) act rationally, including, but n ot limited to, an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communication, decision-making or action, or b. a set of techniques, including, but not limited to, machine learning, that i s designed to approximate a cognitive task; and 2. "State agency" means each department, b oard, council, commission, institution , or other agency of the executive branch of HB3828 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the state government, provided each board, council, commission , institution, or other agency included by law within any giv en department shall be deemed a divi sion of that department. The term "state agency" shall include: a. the offices of the Governor, Lieutenant Governor, Treasurer, Attorney General, Secretary of State and Comptroller, and b. all operations of an executive branch agency which are funded by either the General Revenue Fund or a special fund. SECTION 2. NEW LAW A new section o f law to be codified in the Oklahoma Statutes as Se ction 10102 of Title 74, unless there is created a duplica tion in numbering, reads as follows: A. Not later than December 31, 2024, and annually thereafter, the Office of Management and Enterprise Se rvices (OMES) shall conduct an inventory of all systems that employ artifici al intelligence and are in use by any state a gency that uses OMES's services. Any agency that does not use OMES's services shall conduct their own inventory. Each such inventory shall include at a minimum the following information for each such system: 1. The name of such system and the vendor, if any, that provided such system; 2. A description of the general capabilities and uses of such system; HB3828 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Whether such system was used to independently make, inform, or materially support a conclusion, decision, or judgment; and 4. Whether such system underwent an impact asses sment prior to implementation. B. The Office of Management and Enterprise Serv ices or agencies that do not use OMES 's services shall make each inventory conducted pursuant to subsection A of this section publicly available on their website. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 10103 of Title 74, unless there is created a duplication in numbering, reads as follow s: A. Beginning on February 1, 2025, the Office of Management and Enterprise Services (OMES) or any agency that does not use OMES's services shall perform ongoing assessments of system s that employ artificial intelligence and are in us e by state agencies to ensure that no such system shall result in any unlawful discrimination or disparate impact described in subsection B of this section. B. Not later than February 1, 202 5, the Office of Management and Enterprise Services shall develop and establish policies and procedures concerning the development, procurement, implement ation, utilization, and ongoing assessment of systems that employ artificial intelligence and are in use by state ag encies. Such policies and procedures shall, at a m inimum, include poli cies and procedures that: HB3828 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Govern the procurement, implementation , and ongoing assessment of such systems by stat e agencies; 2. Are sufficient to ensure that no such system : a. results in any unlawful discrimination against any individual or group of i ndividuals, or b. has any unlawful disparate impact on any individual or group of individuals on the basis of any actual or perceived differentiating characteristics, including, but not limited to, age, genetic information, color, ethnicity, race, creed, r eligion, national origin, ancestry, sex, gender identity or expression, sexual orientation, marital status, familial status, pregnancy, veteran status, disability, or lawful source of income; 3. Require a state agency to assess the lik ely impact of any such system before implementing such system; and 4. Provide for the Office of Management and Enterprise Services or any agency that does not use OM ES's services to perform ongoing assessments of such systems to ensure that no such system results in any unlawful discrimination or disparate impact described in paragraph 2 of this subsection. C. The Office of Management and Enterprise Serv ices may revise policies and procedures established in this act if such revision is deemed necessary by the Executive Director. HB3828 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. The Office of Management and Enterprise Services shall post policies and procedures established pursuant to this act and any revision made to such policies and procedures pursu ant to subsection C on the agency's website. E. Beginning on February 1, 2025, no state agency shall implement any system th at employs artificial intelligence: 1. Unless the state agency has performed an impact assess ment, in accordance with the policies and procedures established pursuant to this act, to ensure that such s ystem will not result in any unlawful discrimination o r disparate impact described herein; or 2. If the head of such state agency determines , at their discretion, that such system will result in any unlawful discrimination or disparate impact described in this act. SECTION 4. This act shall become effective November 1, 2024. COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT MODERNIZATION AND TECHNOLOGY, dated 02/21/2024 - DO PASS, As Amended and Coauthored.