Bill Text: MI HB5899 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: State management: other; artificial intelligence pilot program; establish for state departments and agencies. Creates new act.
Sponsorship: Bipartisan Bill
Status: (Introduced) 2026-05-19 - Recommendation Concurred In [HB5899 Detail]
Download: Michigan-2025-HB5899-Introduced.html
HOUSE BILL NO. 5899
A bill to create an artificial intelligence governing board and prescribe its powers and duties; to require the creation of an artificial intelligence pilot program; to provide for the powers and duties of certain state governmental officers and entities; to create funds; and to provide for the promulgation of rules.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "artificial intelligence pilot program act".
(a) "Artificial intelligence" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to do all of the following:
(i) Perceive real and virtual environments.
(ii) Abstract the perceptions described in subparagraph (i) into models through analysis in an automated manner.
(iii) Use model inference to formulate options for information or action.
(b) "Board" means the artificial intelligence governing board created in section 5.
(c) "Chief information officer" means that term as defined in section 2 of the cyber civilian corps act, 2017 PA 132, MCL 18.222.
(d) "Department" means the department of technology, management, and budget.
(e) "Director" means the director of the department or the director's designee.
(f) "Fund" means the artificial intelligence pilot program fund created in section 9.
(g) "Generative artificial intelligence" means artificial intelligence that uses predictive algorithms to create audio, video, code, images, text, simulations, or other content.
(h) "Pilot participant" means an employee, agency, or department of this state that has been approved for the pilot program under section 7.
(i) "Pilot program" means the artificial intelligence pilot program created under section 7.
Sec. 5. (1) The artificial intelligence governing board is created in the department.
(2) The governor shall appoint the members of the board. The board must consist of the following members:
(a) One individual with expertise in artificial intelligence or data science.
(b) One individual with expertise in ethics, civil rights, or privacy.
(c) One individual who represents the private sector.
(3) The governor shall appoint the first members of the board not later than 90 days after the effective date of this act.
(4) The governor shall appoint 1 of the first members to a 1-year term, 1 of the first members to a 2-year term, and 1 of the first members to a 3-year term. After the first appointments, the term of a member of the board is 3 years or until a successor is appointed under subsection (2), whichever is later.
(5) If a vacancy occurs on the board, the governor shall appoint an individual to fill the vacancy for the balance of the term.
(6) The governor may remove a member of the board for incompetence, dereliction of duty, malfeasance, misfeasance, or nonfeasance in office, or any other good cause.
(7) The governor shall call the first meeting of the board. At the first meeting, the board shall elect a member as a chairperson and may elect other officers that it considers necessary or appropriate. The board shall meet at least quarterly, or more frequently at the call of the chairperson or at the request of 2 or more members.
(8) A majority of the members of the board constitute a quorum for transacting business. A vote in favor by a majority of the members of the board serving is required for any action of the board.
(9) The board shall conduct its business in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(10) A writing that is prepared, owned, used, possessed, or retained by the board in performing an official function is subject to the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(11) A member of the board is not entitled to compensation for service on the board, but the board may reimburse a member for actual and necessary expenses incurred in serving.
(12) The board shall do all of the following:
(a) Provide recommendations to the department regarding the design and implementation of the pilot program.
(b) Upon the request of the director, advise the department on a proposed use of generative artificial intelligence, an application for the pilot program submitted under section 7(5), or other matters necessary to design or implement the pilot program.
(c) Develop and periodically provide recommended updates to the ethical guidelines and best practices for the use of generative artificial intelligence in state government.
(13) The board may do any of the following:
(a) Collect and analyze comments from subject matter experts in the field of generative artificial intelligence and other relevant stakeholders of the pilot program.
(b) Advise the department on the promulgation of rules under this act.
(c) Issue nonbinding guidance to pilot participants regarding the responsible use of generative artificial intelligence.
Sec. 7. (1) The department shall establish and maintain an artificial intelligence pilot program. The purpose of the pilot program is to enable the use of generative artificial intelligence by pilot participants. The pilot program must begin not later than January 1, 2027 and must exist until the department, in consultation with the board and chief information officer, determines that the purposes of this act have been fulfilled.
(2) The pilot program, and any use of generative artificial intelligence in connection with the pilot program, must not do any of the following:
(a) Carry out or enable an activity that violates the law.
(b) Allow unauthorized access to or use of personal data or personally identifiable information.
(c) Adversely affect the privacy rights of any individual.
(d) Discriminate in violation of the law.
(3) The board and the department shall consider the extent to which generative artificial intelligence that is proposed for use in the pilot program would do any of the following:
(a) Promote innovation.
(b) Create content that is accurate and reliable and does not contain bias.
(c) Improve the delivery of public services in this state.
(d) Improve the efficiency or effectiveness of the work of pilot participants.
(e) Benefit the professional development or job skills of employees of this state.
(f) Place an undue administrative burden on pilot participants.
(g) Pose a risk to public trust, security, or privacy.
(h) Have the potential to replace, rather than augment, the judgment of employees of this state.
(4) In designing and implementing the pilot program, the department shall take all of the following actions:
(a) Review and consider the board's recommendations for the pilot program.
(b) Create forms and establish policies and procedures for the pilot program.
(c) Contract with a person to accomplish the purposes of this act.
(d) Approve or reject applications for the pilot program submitted under subsection (5).
(e) Develop and maintain training materials for use by pilot participants.
(f) Perform appropriate testing and auditing of generative artificial intelligence used in connection with the pilot program.
(g) Provide to the chief information officer recommended changes to state information technology policies related to generative artificial intelligence.
(h) Collect and analyze feedback from pilot participants regarding the pilot program.
(i) Ensure compliance with applicable state and federal data protection and cybersecurity standards.
(5) An employee, agency, or department of this state may apply to become a pilot participant by submitting an application to the department in a form and manner prescribed by the department. A pilot participant shall comply with the requirements of the pilot program and this act. The director may withdraw the approval of a pilot participant at any time.
(6) The use of generative artificial intelligence by a pilot participant under the pilot program is subject to all of the following:
(a) The procurement and use of the generative artificial intelligence must comply with all applicable laws, rules, and guidelines.
(b) If the generative artificial intelligence does not prevent confidential or other similar information from being disclosed to persons who are not authorized to access that information, the pilot participant shall not use confidential or other similar information with the generative artificial intelligence.
(c) A pilot participant shall not use restricted information with the generative artificial intelligence.
(d) A pilot participant shall ensure that a human being reviews each output of the generative artificial intelligence.
(e) A pilot participant shall not use generative artificial intelligence unless the generative artificial intelligence has been approved by the department.
(7) Not later than 180 days after the conclusion of the pilot program, the department shall submit a written report to the governor, the secretary of the senate, the clerk of the house of representatives, and the board. The department shall post the report on a website that is accessible to the public. The report must include the department's findings based on the results of the pilot program, including, but not limited to, all of the following:
(a) The amount of time that pilot participants saved in their work by using generative artificial intelligence.
(b) Any processes that were made more efficient by using generative artificial intelligence.
(c) Any identified risks, unintended consequences, or adverse effects that resulted from the use of generative artificial intelligence.
Sec. 9. (1) The artificial intelligence pilot program fund is created in the state treasury.
(2) The state treasurer shall deposit money and other assets received from any source in the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
(3) The department is the administrator of the fund for audits of the fund.
(4) The department shall expend money from the fund on appropriation only for the purpose of implementing this act.
Sec. 11. The department may promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
