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HB2500
HOUSE OF REPRESENTATIVES
H.B. NO.
2500
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to artificial intelligence
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:
"
Chapter
artificial intelligence
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� -1
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Definitions.
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As used in this chapter:
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"Algorithmic decision system"
means any machine-based system or computational process that uses statistical
modeling, data analytics, artificial intelligence, or machine learning to
generate a simplified output, including scores, classifications, or
recommendations, or is capable, for a given set of human-defined objectives, of
making predictions or recommendations and is used to assist, inform, or replace
human decision-making.
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"Algorithmic
decision system" does not include the following:
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(1)
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Databases, spreadsheets, or other tools that
merely organize data already in the possession of the human user of the system;
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(2)
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Junk email filters;
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(3)
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Firewalls;
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(4)
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Anti-virus software;
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(5)
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Calculators;
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(6)
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Spell-checking;
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(7)
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Anti-malware;
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(8)
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Artificial-intelligence-enabled video games;
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(9)
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Cybersecurity;
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(10)
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Data storage;
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(11)
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Internet domain registration;
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(12)
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Internet website loading;
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(13)
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Networking;
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(14)
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Spam call and robocall filtering;
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(15)
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Web caching;
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(16)
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Web hosting or similar technology; or
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(17)
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Technologies that are solely used to order
office supplies, schedule meetings, automate inventory tracking, or perform,
assist, or administer similar ministerial administrative support functions.
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"Biometric
identifier" means data generated by the technological processing,
measurement, or analysis of an individual's biological, physical, or behavioral
characteristics, which data can be processed for the purpose of uniquely
identifying the individual.
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"Biometric identifier" includes:
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(1)
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A fingerprint;
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(2)
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A voiceprint;
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(3)
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A scan or record of an eye retina or iris;
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(4)
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A facial map, facial geometry, or facial
template; or
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(5)
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Other unique biological, physical, or
behavioral patterns or characteristics.
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"Deploy"
means to use an algorithmic decision system.
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"Deployer"
means a person doing business in the State that deploys an algorithmic decision
system.
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"Develop"
means to design, build, or train an algorithmic decision system or to knowingly
and materially modify, adapt, or combine an existing machine-based system or
computational process for use as an algorithmic decision system.
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"Developer"
means a person or the person's agent doing business in the State that:
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(1)
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Develops an algorithmic decision system; or
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(2)
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Sells, leases, distributes, or otherwise makes
available an algorithmic decision system to a deployer.
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"Generative
artificial intelligence system" means an artificial intelligence system
that:
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(1)
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Is trained on data;
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(2)
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Interacts with an individual using text,
audio, or visual communication; and
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(3)
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Generates unscripted outputs similar to
outputs created by a human, with limited or no human oversight.
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"Personal
characteristics" include:
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(1)
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Personal data;
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(2)
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Genetic information;
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(3)
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Biometric identifiers;
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(4)
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An individual's economic situation, health,
personal preferences, affiliations, interests, reliability, behavior, location,
or movements; and
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(5)
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Inferences associated with a group, band,
class, or tier of individuals to which the individual belongs.
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"Plain
language" means communication that is:
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(1)
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Clear, concise, and easy to understand for the
intended audience, including people with disabilities, people with limited
education, and English language learners; and
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(2)
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Available in English and any other relevant
languages required by the attorney general by rule.
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� -2
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Disclosure requirements for developers of
algorithmic decision systems.
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Beginning January 1, 2027, a developer shall,
consistent with any form and manner prescribed by the attorney general, provide
to each deployer of the developer's algorithmic decision system:
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(1)
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An analysis of whether and how any intended
uses, or reasonably foreseeable uses or misuses, of the algorithmic decision
system pose a known or reasonably foreseeable risk of violating this chapter
and any applicable state or federal law;
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(2)
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A description of any steps taken by the
developer to mitigate any identified risks of violations of this chapter and
any applicable state or federal law;
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(3)
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A statement describing the intended uses and
reasonably foreseeable uses and misuses of the algorithmic decision system; and
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(4)
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All other information necessary to allow the
deployer to comply with the deployer's obligations under this chapter.
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� -3
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Disclosure requirements for deployers of
algorithmic decision systems.
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(a)
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Beginning January 1, 2027, a deployer shall, either directly or through
a developer or other third party, provide the disclosures required by
subsection (b) directly to an individual who is or will be affected by a
decision made, informed, or influenced by an algorithmic decision system, which
decision has a material legal or similarly significant effect on the provision
or denial to the individual of, or the cost or terms of:
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(1)
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Education enrollment or an education
opportunity;
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(2)
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Employment or an employment opportunity;
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(3)
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A financial or lending service;
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(4)
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An essential government service;
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(5)
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A health care service;
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(6)
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Housing;
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(7)
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Insurance; or
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(8)
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A legal service.
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(b)
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Before a deployer deploys an algorithmic
decision system to make, inform, or influence a decision affecting an
individual pursuant to subsection (a), the deployer shall provide the
individual with a notice, in plain language and consistent with any form and
manner prescribed by the attorney general, that the deployer will be using an
algorithmic decision system to make, inform, or influence a decision concerning
the individual; provided that the notice shall include:
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(1)
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The name of the developer or developers of the
algorithmic decision system;
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(2)
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The trade name and version number of the
algorithmic decision system;
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(3)
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The nature of the decision and the stage in
the decision-making process during which the algorithmic decision system will
be used; and
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(4)
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The contact information for the deployer.
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(c)
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As soon as practicable, and no later than
thirty days after the deployment of an algorithmic decision system to make,
inform, or influence a decision pursuant to subsection (a), a deployer shall
provide an affected individual, in plain language and consistent with any form
and manner prescribed by the attorney general, with:
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(1)
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A list of the types, categories, and sources
of personal characteristics associated with the individual that were analyzed,
predicted, input into, inferred, or collected by the algorithmic decision
system;
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(2)
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A list of the twenty personal characteristics
of the individual that most substantially influenced the output of the
algorithmic decision system or, if the algorithmic decision system's output was
influenced by fewer than twenty personal characteristics, a list of all
personal characteristics that influenced the output; and
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(3)
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Information on how the individual can exercise
rights pursuant to section -4.
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� -4
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Individual right to access and correct data
used by an algorithmic decision system; procedures.
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(a)
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An individual affected by a
decision made, informed, or influenced by an algorithmic decision system, as
described in section -3(a), has a right to:
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(1)
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Access any personal characteristics of the
individual that were analyzed by, predicted by, input into, inferred by, or
collected by an algorithmic decision system; and
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(2)
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Challenge and correct any inaccurate data.
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(b)
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A deployer or developer that has access to an
individual's data shall create reasonable, accessible, and concise procedures
in plain language to allow the individual to exercise the individual's right
pursuant to subsection (a).
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� -5
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Disclosure requirements for generative
artificial intelligence systems.
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Pursuant to any
requirements established by the attorney general, a person that deploys,
offers, sells, leases, licenses, gives, or otherwise makes available a
generative artificial intelligence system that is intended to interact with an
individual shall disclose to each individual who interacts with the generative
artificial intelligence system the fact that the individual is interacting with
a generative artificial intelligence system.
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Joint and several liability for a developer
and deployer of an algorithmic decision system.
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(a)
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Notwithstanding any other law
to the contrary, beginning January 1, 2027, the developer and deployer of
an algorithmic decision system shall be jointly and severally liable for a
violation of any law facilitated by the deployer's use of the algorithmic
decision system; provided that a developer shall not be jointly and severally
liable if the developer can demonstrate that the violation of law resulted from
a misuse of the algorithmic decision system by the deployer, the developer took
all reasonable steps available, contractual or otherwise, to prevent the
misuse, and the developer:
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(1)
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Did not intend and could not have reasonably
foreseen the misuse; or
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(2)
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Specifically disallowed the misuse in
disclosures pursuant to section -2.
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(b)
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Nothing in this section shall limit,
displace, or otherwise affect any liability that a developer may have in the
developer's own right, separate and apart from liability under this section,
for a violation of state or federal law.
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Compliance with this chapter shall not be a defense to, and shall not
otherwise excuse, noncompliance with any applicable law.
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Enforcement.
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(a)
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A violation of this chapter
shall constitute an unfair or deceptive act or practice in the conduct of trade
or commerce within the meaning of section 480-2.
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(b)
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No private right of action at law shall arise under this chapter.
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(c)
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Nothing in this chapter shall preempt or otherwise affect any other
right, claim, remedy, presumption, or defense available at law or in equity,
including any right available pursuant to laws governing anti-discrimination,
competition, privacy, or unfair and deceptive acts and practices.
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� -8
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Rules.
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The attorney general
shall adopt rules as necessary pursuant to chapter 91 to implement and enforce
this chapter."
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SECTION 2.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.
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SECTION 3.
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If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.
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SECTION 4.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Artificial
Intelligence; Algorithmic Decision Systems; Developer; Deployer; Disclosure;
Enforcement
Description:
Beginning
1/1/2027, requires a developer of an algorithmic decision system to provide certain
disclosures to a deployer and an individual who is or will be affected by a
decision made, informed, or influenced by the algorithmic decision system.
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Provides certain rights and procedures for
individuals to access and correct data used by an algorithmic decision
system.
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Requires disclosure requirements
for generative artificial intelligence systems.
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Provides that a developer and deployer of an algorithmic decision system
are jointly and severally liable for a violation of any law that results from
the deployer's use of the developer's system, under certain conditions.
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Assigns enforcement responsibilities to the
attorney general, including establishing rules.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.