103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5322

 

Introduced 2/9/2024, by Rep. Abdelnasser Rashid

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Illinois Commercial Algorithmic Impact Assessments Act. Defines "algorithmic discrimination", "artificial intelligence", "consequential decision", "deployer", "developer" and other terms. Requires that by January 1, 2026 and annually thereafter, a deployer of an automated decision tool must complete and document an assessment that summarizes the nature and extent of that tool, how it is used, and assessment of its risks among other things. Requires on or after January 1, 2026 and annually thereafter, developers of an automated decision tool must complete and document a similar assessment. Provides that upon the request of the Attorney General, a developer or deployer must provide that Office any impact assessment performed that is exempt from the Freedom of Information Act. Requires that a developer must provide a deployer with a statement regarding the intended uses of the automated decision tool and documentation regarding all of the following: (i) the known limitations of the automated decision tool, including any reasonably foreseeable risks of algorithmic discrimination arising from its intended use; (ii) a description of the types of data used to program or train the automated decision tool; and (iii) a description of how the automated decision tool was evaluated for validity and the ability to be explained before sale or licensing. Exempts a deployer with fewer than 50 employees unless, as of the end of the prior calendar year, the deployer deployed an automated decision tool that affected more than 999 people per year.


LRB103 37070 JRC 67188 b

 

 

A BILL FOR

 

HB5322LRB103 37070 JRC 67188 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Commercial Algorithmic Impact Assessments Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Algorithmic discrimination" means the condition in which
8an automated decision tool contributes to unjustified
9differential treatment or impacts disfavoring people on the
10basis of race, color, national origin, citizen or immigration
11status, families with children, creed, religious belief or
12affiliation, sex, marital status, the presence of any sensory,
13mental, or physical disability, age, honorably discharged
14veteran or military status, sexual orientation, gender
15expression or gender identity, or any other protected class
16under Illinois statute.
17    "Artificial intelligence" means a machine-based system
18that can, for a given set of human-defined objectives, make
19predictions, recommendations, or decisions influencing a real
20or virtual environment.
21    "Automated decision tool" means a system or service that
22uses artificial intelligence and has been specifically
23developed and marketed to, or specifically modified to, make,

 

 

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1or be a controlling factor in making, consequential decisions.
2    "Consequential decision" means a decision or judgment that
3has a legal, material, or similarly significant effect on an
4individual's life relating to the impact of, access to, or the
5cost, terms, or availability of, any of the following:
6        (1) Employment, workers management, or
7    self-employment, including, but not limited to:
8            (A) Pay or promotion;
9            (B) Hiring or termination; and
10            (C) Automated task allocation that automatically
11        limits, segregates, or classifies employees based on
12        individual behavior or performance for the purpose of
13        assigning or determining material terms or conditions
14        of employment.
15        (2) Education and vocational training, including, but
16    not limited to:
17            (A) Assessment, including, but not limited to,
18        detecting student cheating or plagiarism;
19            (B) Accreditation;
20            (C) Certification;
21            (D) Admissions; and
22            (E) Financial aid or scholarships.
23        (3) Housing or lodging, including rental or short-term
24    housing or lodging;
25        (4) Essential utilities, including electricity, heat,
26    water, internet or telecommunications access, or

 

 

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1    transportation;
2        (5) Family planning, including adoption services or
3    reproductive services, as well as assessments related to
4    child protective services;
5        (6) Health care or health insurance, including mental
6    health care, dental, or vision;
7        (7) Financial services, including a financial service
8    provided by a mortgage company, mortgage broker, or
9    creditor;
10        (8) The criminal justice system, including, but not
11    limited to, risk assessments for pretrial hearings,
12    sentencing, and parole;
13        (9) Legal services, including private arbitration or
14    mediation;
15        (10) Voting; and
16        (11) Access to benefits or services or assignment of
17    penalties.
18    "Deployer" means a person, partnership, State or local
19government agency, or corporation that uses or modifies an
20automated decision tool to make a consequential decision.
21    "Developer" means a person, partnership, State or local
22government agency, or corporation that designs, codes, or
23produces an automated decision tool, or substantially modifies
24an artificial intelligence system or service for the known
25intended purpose of making, or being a controlling factor in
26making, consequential decisions, whether for its own use or

 

 

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1for use by the deployer.
2    "Ethical artificial intelligence" means automated decision
3tools that are developed and deployed with reasonable efforts
4by the developer and the deployer to:
5        (1) Minimize unlawful discriminatory or biased outputs
6    or applications;
7        (2) Ensure that automated decision tools are being
8    operated reliably, safely, and consistently;
9        (3) Protect the data of natural persons by
10    incorporating robust privacy and data security measures;
11        (4) Prioritize transparency so that the behavior and
12    functional components of automated decision tools can be
13    understood in order to enable the identification of
14    performance issues, safety and privacy concerns, biases,
15    exclusionary practices, and unintended outcomes; and
16        (5) Promote individual rights and minimize reasonably
17    foreseeable harm to individuals resulting from use of the
18    automated decision tool.
19    "Impact assessment" means a documented risk-based
20evaluation of an automated decision tool that meets the
21criteria of this Act.
22    "Sex" includes pregnancy, childbirth, and related
23conditions, gender identity, intersex status, and sexual
24orientation.
25    "Significant update" means a new version, new release, or
26other update to an automated decision tool that materially

 

 

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1changes its principal use, principal intended use, or expected
2outcome.
 
3    Section 10. Assessment required.
4    (a) By January 1, 2026, and annually thereafter, a
5deployer of an automated decision tool must complete and
6document an impact assessment for any automated decision tool
7the deployer uses that includes all of the following:
8        (1) A statement of the purpose of the automated
9    decision tool and its intended benefits, uses, and
10    deployment contexts;
11        (2) A description of the automated decision tool's
12    outputs and how they are used to make, or be a controlling
13    factor in making, a consequential decision;
14        (3) A summary of the types of data collected from
15    natural persons and processed by the automated decision
16    tool when it is used to make, or be a controlling factor in
17    making, a consequential decision;
18        (4) A statement of the extent to which the deployer's
19    use of the automated decision tool is consistent with or
20    varies from the statement required of the developer by
21    Section 15 of this Act;
22        (5) An assessment of the reasonably foreseeable risks
23    of algorithmic discrimination arising from the use of the
24    automated decision tool known to the deployer at the time
25    of the impact assessment;

 

 

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1        (6) A description of the safeguards implemented, or
2    that will be implemented, by the deployer to align use of
3    the automated decision tool with principles of ethical
4    artificial intelligence and to address any reasonably
5    foreseeable risks of algorithmic discrimination arising
6    from the use of the automated decision tool;
7        (7) A description of how the automated decision tool
8    will be used by a natural person, or monitored when it is
9    used, to make, or be a controlling factor in making, a
10    consequential decision; and
11        (8) A description of how the automated decision tool
12    has been or will be evaluated for validity or relevance.
13    (b) By January 1, 2026, and annually thereafter, a
14developer of an automated decision tool must complete and
15document an impact assessment of any automated decision tool
16that it designs, codes, or produces that includes all of the
17following:
18        (1) A statement of the purpose of the automated
19    decision tool and its intended benefits, uses, and
20    deployment contexts;
21        (2) A description of the automated decision tool's
22    outputs and how they are used, as intended, to make, or be
23    a controlling factor in making, a consequential decision;
24        (3) A summary of the types of data collected from
25    natural persons and processed by the automated decision
26    tool when it is used to make, or be a controlling factor in

 

 

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1    making, a consequential decision;
2        (4) An assessment of the reasonably foreseeable risks
3    of algorithmic discrimination arising from the intended
4    use or foreseeable misuse of the automated decision tool;
5        (5) A description of the measures taken by the
6    developer to incorporate principles of ethical artificial
7    intelligence and to mitigate the risk known to the
8    developer of algorithmic discrimination arising from the
9    use of the automated decision tool; and
10        (6) A description of how the automated decision tool
11    is intended to be used by a natural person, or monitored
12    when it is used, to make, or be a controlling factor in
13    making, a consequential decision.
14    (c) A deployer or developer must, in addition to the
15impact assessment required by subsections (1) and (2) of this
16Section, perform, as soon as feasible, an impact assessment
17with respect to any significant update.
18    (d) Upon the request of the Office of the Attorney
19General, a developer or deployer must provide any impact
20assessment that it performed pursuant to this Section to the
21Office of the Attorney General. If a developer or deployer
22fails or refuses to provide an impact assessment requested by
23the Attorney General, the Attorney General may seek injunctive
24relief, actual damages caused by failure or refusal, and
25attorney's fees.
26    (e) Impact assessments provided pursuant to subsection (d)

 

 

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1of this Section are confidential and exempt from disclosure
2under the Freedom of Information Act.
 
3    Section 15. Statements provided to deployers. A developer
4must provide a deployer with a statement regarding the
5intended uses of the automated decision tool and documentation
6regarding all of the following:
7        (a) The known limitations of the automated decision
8    tool, including any reasonably foreseeable risks of
9    algorithmic discrimination arising from its intended use;
10        (b) A description of the types of data used to program
11    or train the automated decision tool; and
12        (c) A description of how the automated decision tool
13    was evaluated for validity and the ability to be explained
14    before sale or licensing.
 
15    Section 20. Developer policies. A developer must make
16publicly available, in a readily accessible manner, a clear
17policy that provides a summary of both of the following:
18        (a) The types of automated decision tools currently
19    made available to others by the developer; and
20        (b) How the developer manages the reasonably
21    foreseeable risks of algorithmic discrimination that may
22    arise from the use of the automated decision tools it
23    currently makes available to others.
 

 

 

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1    Section 25. Exempt deployers. This Act does not apply to a
2deployer with fewer than 50 employees unless, as of the end of
3the prior calendar year, the deployer deployed an automated
4decision tool that affected more than 999 people per year.