Bill Text: IA HF406 | 2025-2026 | 91st General Assembly | Introduced


Bill Title: A bill for an act relating to restrictions on the use of artificial intelligence, and creating a civil cause of action.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-13 - Introduced, referred to Economic Growth and Technology. H.J. 327. [HF406 Detail]

Download: Iowa-2025-HF406-Introduced.html
House File 406 - Introduced HOUSE FILE 406 BY WICHTENDAHL A BILL FOR An Act relating to restrictions on the use of artificial 1 intelligence, and creating a civil cause of action. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1732YH (3) 91 dg/jh
H.F. 406 Section 1. NEW SECTION . 554I.1 Definitions. 1 1. “Application” means a software program designed for an 2 electronic device to enable a user to perform a particular 3 task or set of related tasks including checking the weather, 4 playing games, accessing social media, or managing personal 5 information, within the capabilities of the electronic device. 6 2. “Artificial intelligence” means any machine-based system 7 that, for any explicit or implicit objective, infers from the 8 inputs the system receives to generate outputs, including 9 content, decisions, predictions, or recommendations, that can 10 influence physical or virtual environments. 11 3. “Developer” means a person who, in this state, creates 12 or substantially modifies artificial intelligence or an 13 application that uses artificial intelligence. 14 4. a. “Device company” means a person engaged in the 15 business of manufacturing smart devices and that has a 16 registered office, a registered agent, or a business office in 17 this state. 18 b. “Device company” includes a registrant as defined in 19 section 548.101, that engages in the business of manufacturing 20 smart devices. 21 5. “Initialize” means the process of starting a smart device 22 and associating the smart device with a new user account. 23 6. “Private data” means data that artificial intelligence, 24 or an application that includes artificial intelligence, 25 accesses on a smart device, and that is not any of the 26 following: 27 a. Content that was generated by using the artificial 28 intelligence or the application on the smart device. 29 b. Content to which the artificial intelligence’s developer 30 or the application’s developer had previously received 31 authorization to access for purposes described in the smart 32 device’s statement of purpose or the application’s statement 33 of purpose. 34 7. “Smart device” means a computer, smartphone, gaming 35 -1- LSB 1732YH (3) 91 dg/jh 1/ 10
H.F. 406 console, tablet computer, or other electronic device capable 1 of running software to download, install, or use artificial 2 intelligence and that was sold in this state on or after July 3 1, 2025. 4 8. “Statement of purpose” means a statement made for an 5 application or smart device that explains all of the following: 6 a. The types of private data the application or smart device 7 was designed to access. 8 b. How the private data will be used, including but not 9 limited to the types of new content the private data will be 10 used to generate and how the new content will be used. 11 c. If the application or smart device is designed to save, 12 copy, or otherwise transfer private data to a location outside 13 the smart device, an explanation of how and where private data 14 will be maintained, disseminated, and deleted, as applicable. 15 Sec. 2. NEW SECTION . 554I.2 Device company requirements. 16 1. a. If a device company makes a smart device available 17 for purchase with artificial intelligence installed on the 18 smart device, the device company shall cause an agreement to 19 appear when a user initializes the smart device. The agreement 20 shall contain all of the following: 21 (1) A notice to the smart device’s user that the smart 22 device has artificial intelligence installed on the smart 23 device. 24 (2) If the smart device’s artificial intelligence is 25 designed to access the user’s private data, the smart device’s 26 statement of purpose. 27 (3) (a) An option to uninstall the artificial intelligence. 28 (b) If the smart device’s user does not uninstall the 29 artificial intelligence under subparagraph division (a), an 30 interactive form that will allow the smart device’s user to 31 refuse the smart device’s artificial intelligence access to 32 each type of private data the artificial intelligence is 33 designed to access on the smart device prior to the artificial 34 intelligence accessing the private data. 35 -2- LSB 1732YH (3) 91 dg/jh 2/ 10
H.F. 406 b. The requirements of paragraph “a” shall be separate from 1 any other agreement or disclaimer the device company requires 2 or is required to create for the smart device, including but 3 not limited to terms of service agreements and end user license 4 agreements. 5 2. If a device company changes any information contained in 6 the statement of purpose for a smart device, the device company 7 shall do all of the following: 8 a. Update the agreement described in subsection 1. 9 b. Cause the updated agreement described in subsection 1 to 10 appear on each smart device affected by the change and which 11 has not authorized or refused access to private data based on 12 the change. 13 3. If a device company causes a smart device the device 14 company manufactured to install artificial intelligence, the 15 device company shall not do any of the following: 16 a. Permit the artificial intelligence installed on the smart 17 device to access a type of private data that the artificial 18 intelligence was not authorized to access in an agreement 19 described in subsection 1. 20 b. Use private data accessed by the artificial intelligence 21 in a manner that is not stated in the smart device’s statement 22 of purpose. 23 c. If the artificial intelligence saves, copies, or 24 otherwise transfers private data to a location outside a smart 25 device from which the private data originated, maintain, 26 disseminate, or delete the private data in a manner that is 27 inconsistent with the smart device’s statement of purpose. 28 4. a. A device company shall not require a smart device 29 user to install artificial intelligence on the smart device as 30 a condition to use the smart device. 31 b. A device company shall include clearly identifiable means 32 to allow a user to uninstall artificial intelligence from a 33 smart device if the artificial intelligence was installed on 34 the smart device due to an action taken by the device company. 35 -3- LSB 1732YH (3) 91 dg/jh 3/ 10
H.F. 406 Sec. 3. NEW SECTION . 554I.3 Developer requirements. 1 1. a. If a developer makes an application that includes 2 artificial intelligence, makes the application available for 3 general use, and designs the application to access private 4 data, the developer shall cause an agreement to appear on 5 the initial start up of the application on the smart device 6 to which the application was installed. The agreement shall 7 contain all of the following: 8 (1) A notice to the application’s user that the application 9 includes artificial intelligence and the application is 10 designed to access private data. 11 (2) The application’s statement of purpose. 12 (3) An interactive form that will provide the application’s 13 user the ability to refuse the application access to each type 14 of private data the application is designed to access prior to 15 the application accessing the private data. 16 b. The requirements of paragraph “a” shall be separate from 17 any other agreement or disclaimer the application’s developer 18 requires or is required to create for use of the application, 19 including but not limited to terms of service agreements and 20 end user license agreements. 21 2. If an application’s developer changes any information 22 contained in the application’s statement of purpose, the 23 application’s developer shall do all of the following: 24 a. Update the agreement described in subsection 1. 25 b. Cause the updated agreement described in subsection 1 to 26 appear on each smart device affected by the change which has 27 not authorized or refused access to private data based on the 28 change. 29 3. A developer of an application that includes artificial 30 intelligence shall not do any of the following: 31 a. Permit the application to access a type of private data 32 on a smart device that the application was not authorized to 33 access in an agreement described in subsection 1. 34 b. Use private data accessed by the application in a manner 35 -4- LSB 1732YH (3) 91 dg/jh 4/ 10
H.F. 406 that is not stated in the application’s statement of purpose. 1 c. If the application saves, copies, or otherwise transfers 2 private data to a location outside a smart device from which 3 the private data originated, maintain, disseminate, or delete 4 the private data in a manner that is inconsistent with the 5 application’s statement of purpose. 6 Sec. 4. NEW SECTION . 554I.4 Rights to likeness. 7 On or after July 1, 2025, a person shall not use artificial 8 intelligence to intentionally recreate the audio or visual 9 likeness of an individual without the consent of the 10 individual if the likeness was intended to be substantially 11 indistinguishable from the individual and the likeness is used 12 in any of the following ways: 13 1. Commercial activity. 14 2. A political campaign which the individual does not 15 support. 16 3. A manner intended to make other persons believe that 17 the individual engages in activities the individual would 18 reasonably find offensive. 19 4. A manner intended to diminish the individual’s 20 credibility, cause embarrassment, or otherwise lower the 21 individual’s esteem within the individual’s community. 22 5. A manner intended to induce a person to take an action or 23 divulge information the person otherwise would not. 24 Sec. 5. NEW SECTION . 554I.5 Civil liability —— damages —— 25 additional remedies. 26 1. A person may bring an action for actual and punitive 27 damages for a violation of this chapter, including reasonable 28 attorney fees and costs. Punitive damages shall not exceed two 29 hundred fifty thousand dollars for each violation. 30 2. A class action may be brought under this chapter in 31 accordance with the Iowa rules of civil procedure. 32 3. The court shall specify the amount of each of the 33 following for each violation of this chapter: 34 a. Actual damages. 35 -5- LSB 1732YH (3) 91 dg/jh 5/ 10
H.F. 406 b. Punitive damages. 1 c. Court costs. 2 d. Reasonable attorney fees. 3 4. In determining the punitive damages for a violation of 4 this chapter, the court shall consider all of the following: 5 a. The nature and extent of the violation. 6 b. The severity of the violation. 7 c. The potential economic effect of the punitive damages on 8 the person who violated this chapter. 9 d. The good-faith measures the person who violated this 10 chapter took to comply with this chapter. 11 e. The willfulness of the violation. 12 f. The deterrent effect that the imposition of punitive 13 damages will have. 14 g. Any other factors the court finds appropriate. 15 5. a. For purposes of imposing punitive damages under 16 this chapter, a device company is considered to have committed 17 a separate violation of section 554I.2 for each smart device 18 manufactured on or after July 1, 2025, that is initialized in 19 this state. 20 b. For purposes of imposing punitive damages under this 21 chapter, a developer shall be considered to have committed a 22 separate violation of section 554I.3 for each smart device that 23 uses the developer’s artificial intelligence or application on 24 or after July 1, 2025, in this state. 25 c. For purposes of imposing punitive damages under this 26 chapter, a person shall be considered to have committed a 27 separate violation of section 554I.4 for each day a violation 28 continues. 29 6. This chapter shall not preclude a person from bringing a 30 civil or criminal action under any other provision of law. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to restrictions on the use of artificial 35 -6- LSB 1732YH (3) 91 dg/jh 6/ 10
H.F. 406 intelligence (AI). 1 The bill defines “application” as a software program 2 designed for an electronic device to enable a user to perform 3 a particular task or set of related tasks including but not 4 limited to checking the weather, playing games, accessing 5 social media, or managing personal information, within the 6 capabilities of the electronic device. 7 The bill defines “artificial intelligence” as any 8 machine-based system that, for any explicit or implicit 9 objective, infers from the inputs the system receives to 10 generate outputs, including content, decisions, predictions, 11 or recommendations, that can influence physical or virtual 12 environments. 13 The bill defines “developer” as a person who, in this state, 14 creates or substantially modifies AI or an application (app) 15 that uses AI. 16 The bill defines “device company” as a person engaged in 17 the business of manufacturing smart devices and that has a 18 registered office, a registered agent, or a business office 19 in this state. “Device company” includes a registrant as 20 defined in Code section 548.101, that engages in the business 21 of manufacturing smart devices. 22 The bill defines “initialize” as the process of starting a 23 smart device and associate the smart device with a new user 24 account. 25 The bill defines “private data” as data that AI, or an app 26 that includes AI, accesses on a smart device, and that is not 27 content generated by using the AI or the app on the smart 28 device, or content to which the AI’s developer or the app’s 29 developer had previously received authorization to access for 30 purposes described in the smart device’s statement of purpose 31 or the app’s statement of purpose. 32 The bill defines “smart device” as a computer, smartphone, 33 gaming console, tablet computer, or other electronic device 34 capable of running software to download, install, or use AI and 35 -7- LSB 1732YH (3) 91 dg/jh 7/ 10
H.F. 406 that was sold in this state on or after July 1, 2025. 1 The bill defines “statement of purpose” as a statement 2 made for an app or smart device that explains the types of 3 private data the app or smart device was designed to access; 4 how the private data will be used, including the types of new 5 content the private data will be used to generate and how the 6 new content will be used; and if the app or smart device is 7 designed to save, copy, or otherwise transfer private data to 8 a location outside the smart device, an explanation of how 9 and where private data will be maintained, disseminated, and 10 deleted, as applicable. 11 If a device company makes a smart device available for 12 purchase with AI installed on the smart device, the bill 13 requires the device company to cause an agreement to appear 14 when a user initializes the smart device. The agreement 15 must contain a notice to the smart device’s user that the 16 smart device has AI installed on the smart device; if the 17 smart device’s AI is designed to access the user’s private 18 data, the smart device’s statement of purpose (SOP); and an 19 option to uninstall the AI. If the smart device’s user does 20 not uninstall the AI, the device company needs to cause an 21 interactive form to appear that will allow the smart device’s 22 user to refuse the smart device’s AI access to each type of 23 private data the AI is designed to access on the smart device 24 prior to the AI accessing the private data. The agreement must 25 be separate from any other agreement or disclaimer the device 26 company requires or is required to create for the smart device, 27 including but not limited to terms of service agreements and 28 end user license agreements. 29 If a device company changes any information contained in the 30 SOP for a smart device, the bill requires the device company 31 to update the agreement containing the smart device’s SOP, and 32 cause the updated agreement to appear on each smart device 33 affected by the change and which has not authorized or refused 34 access to private data based on the change. 35 -8- LSB 1732YH (3) 91 dg/jh 8/ 10
H.F. 406 If a device company causes AI to be installed on a smart 1 device the device company manufactured, the bill prohibits 2 the device company from permitting the AI installed on the 3 smart device to access a type of private data that the AI was 4 not authorized to access in an agreement containing the smart 5 device’s SOP; using private data accessed by the AI in a manner 6 that is not stated in the smart device’s SOP; if the AI saves, 7 copies, or otherwise transfers private data to a location 8 outside a smart device from which the private data originated, 9 maintaining, disseminating, or deleting the private data in a 10 manner that is inconsistent with the smart device’s SOP. 11 The bill contains provisions for an app developer which 12 are similar to the requirements and prohibitions for a device 13 company if the app developer makes an app that includes AI 14 available for general use and the app is designed to access 15 private data. 16 The bill prohibits a device company from requiring a smart 17 device user to install AI on the smart device as a condition to 18 use the smart device. 19 The bill requires a device company to include clearly 20 identifiable means to allow a user to uninstall artificial 21 intelligence from a smart device if the artificial intelligence 22 was installed on the smart device due to an action taken by the 23 device company. 24 The bill prohibits a person from using AI to intentionally 25 recreate the audio or visual likeness of an individual without 26 the consent of the individual if the likeness was intended to 27 be substantially indistinguishable from the individual and the 28 likeness is used in commercial activity; a political campaign 29 which the individual does not support; a manner intended to 30 make other persons believe that the individual engages in 31 activities the individual would reasonably find offensive; 32 a manner intended to diminish the individual’s credibility, 33 cause embarrassment, or otherwise lower the individual’s esteem 34 within the individual’s community; or a manner intended to 35 -9- LSB 1732YH (3) 91 dg/jh 9/ 10
H.F. 406 induce a person to take an action or divulge information the 1 person otherwise would not. 2 The bill allows a person to bring an action for actual 3 damages and punitive damages for a violation of the bill, plus 4 reasonable attorney fees and costs. Punitive damages cannot 5 exceed $250,000 per violation. 6 The bill allows persons to bring class actions in accordance 7 with the Iowa rules of civil procedure for violations of the 8 bill. 9 The bill requires the court to specify the amount of actual 10 damages, punitive damages, court costs, and reasonable attorney 11 fees for each violation of the new Code chapter. The bill 12 lists several factors a court must consider when determining 13 the amount of punitive damages under the new Code chapter. 14 A device company is considered to have committed a separate 15 violation for each smart device manufactured on or after July 16 1, 2025, that is initialized in this state. A developer is 17 considered to have committed a separate violation for each 18 smart device that uses the developer’s AI or app on or after 19 July 1, 2025, in this state. A person is considered to have 20 committed a separate violation for each day a likeness is used 21 in violation of the bill. 22 The bill does not preclude a person from bringing an action 23 under any other provision of law. 24 -10- LSB 1732YH (3) 91 dg/jh 10/ 10
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