Bill Text: IL HB5322 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB5322 Detail]

Download: Illinois-2023-HB5322-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5322 Introduced , 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.
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A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Commercial Algorithmic Impact Assessments Act.
Section 5. Definitions. As used in this Act:
"Algorithmic discrimination" means the condition in which
an automated decision tool contributes to unjustified
differential treatment or impacts disfavoring people on the
basis of race, color, national origin, citizen or immigration
status, families with children, creed, religious belief or
affiliation, sex, marital status, the presence of any sensory,
mental, or physical disability, age, honorably discharged
veteran or military status, sexual orientation, gender
expression or gender identity, or any other protected class
under Illinois statute.
"Artificial intelligence" means a machine-based system
that can, for a given set of human-defined objectives, make
predictions, recommendations, or decisions influencing a real
or virtual environment.
"Automated decision tool" means a system or service that
uses artificial intelligence and has been specifically
developed and marketed to, or specifically modified to, make,

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

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

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

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

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

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

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of this Section are confidential and exempt from disclosure
under the Freedom of Information Act.
Section 15. Statements provided to deployers. 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:
(a) The known limitations of the automated decision
tool, including any reasonably foreseeable risks of
algorithmic discrimination arising from its intended use;
(b) A description of the types of data used to program
or train the automated decision tool; and
(c) A description of how the automated decision tool
was evaluated for validity and the ability to be explained
before sale or licensing.
Section 20. Developer policies. A developer must make
publicly available, in a readily accessible manner, a clear
policy that provides a summary of both of the following:
(a) The types of automated decision tools currently
made available to others by the developer; and
(b) How the developer manages the reasonably
foreseeable risks of algorithmic discrimination that may
arise from the use of the automated decision tools it
currently makes available to others.

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