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House
File
2469
-
Introduced
HOUSE
FILE
2469
BY
McBURNEY
A
BILL
FOR
An
Act
prohibiting
the
use
of
an
automated
decision-making
1
system
to
alter
the
price
of
a
product
or
service
for
2
a
specific
individual
based
on
surveillance
data,
and
3
providing
civil
penalties.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2469
Section
1.
NEW
SECTION
.
554J.1
Definitions.
1
For
purposes
of
this
chapter:
2
1.
“Automated
decision-making
system”
means
a
system
that
3
uses
artificial
intelligence
or
algorithms
to
make
decisions
or
4
predictions
with
little
or
no
human
intervention.
5
2.
“Surveillance
data”
means
data
obtained
through
6
observation,
inference,
or
surveillance
of
an
individual
that
7
is
related
to
the
characteristics,
behaviors,
salaries,
or
8
biometrics
of
the
individual
or
a
group
to
which
the
individual
9
belongs.
10
Sec.
2.
NEW
SECTION
.
554J.2
Automated
decision-making
11
systems
——
prohibited
acts.
12
1.
A
person
shall
not
use
an
automated
decision-making
13
system
to
alter
the
price
of
a
product
or
service
for
a
14
specific
individual
based
on
surveillance
data.
15
2.
A
person
that
violates
this
section
commits
an
unfair
16
practice
under
section
714.16
and
under
chapter
714H.
17
Sec.
3.
NEW
SECTION
.
554J.3
Limitations.
18
This
chapter
does
not
apply
to
the
use
of
an
automated
19
decision-making
system
to
alter
the
price
of
a
product
or
20
service
for
a
specific
individual
for
any
of
the
following
21
reasons:
22
1.
Due
to
the
difference
in
costs
to
provide
a
product
or
23
service
to
a
specific
individual.
24
2.
Due
to
a
bona
fide
discount
that
is
widely
available
to
25
members
of
the
public,
including
but
not
limited
to
membership
26
discounts,
military
and
student
discounts,
senior
discounts,
27
and
discounts
due
to
a
special
event.
28
3.
When
the
person
using
an
automated
decision-making
29
system
is
an
insurer
using
the
automated
decision-making
system
30
to
determine
the
amount
a
consumer
must
pay
for
an
insurance
31
policy
or
contract.
32
4.
When
the
person
using
an
automated
decision-making
33
system
is
using
the
automated
decision-making
system
to
34
determine
whether
to
extend
a
line
of
credit
to,
or
refuse
to
35
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enter
into
a
transaction
with,
an
individual
based
on
data
1
provided
in
a
consumer
report
covered
by
the
federal
Fair
2
Credit
Reporting
Act,
15
U.S.C.
§1681
et
seq.
3
Sec.
4.
NEW
SECTION
.
554J.4
Attorney
general
rulemaking
4
authority.
5
The
attorney
general
shall
adopt
rules
pursuant
to
chapter
6
17A
to
implement
and
enforce
this
chapter.
7
Sec.
5.
Section
714.16,
subsection
2,
Code
2026,
is
amended
8
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
t.
It
is
an
unlawful
practice
for
a
person
10
to
violate
section
554J.2.
11
Sec.
6.
Section
714H.3,
subsection
2,
Code
2026,
is
amended
12
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
0f.
Section
554J.2.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
prohibits
the
use
of
an
automated
decision-making
18
system
to
alter
the
price
of
a
product
or
service
for
a
19
specific
individual
based
on
surveillance
data.
A
person
who
20
violates
the
bill’s
provisions
commits
an
unlawful
practice
21
and
shall
be
subject
to
civil
action
according
to
Code
section
22
714.16
(consumer
fraud)
and
Code
chapter
714H
(consumer
fraud
23
——
private
action),
which
can
result
in
remedies
including
24
but
not
limited
to
an
injunction,
restoration
of
a
person’s
25
money
or
property,
disgorgement
of
moneys
or
property,
a
civil
26
penalty
of
up
to
$40,000
per
violation,
and
liability
pursuant
27
to
a
private
cause
of
action.
28
The
bill
lists
several
instances
when
a
person
may
use
29
an
automated
decision-making
system
to
alter
the
price
of
a
30
product
or
service
for
a
specific
individual.
31
The
bill
defines
“automated
decision-making
system”
as
a
32
system
that
uses
artificial
intelligence
or
algorithms
to
make
33
decisions
or
predictions
with
little
or
no
human
intervention.
34
The
bill
defines
“surveillance
data”
as
data
obtained
35
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through
observation,
inference,
or
surveillance
of
an
1
individual
that
is
related
to
the
characteristics,
behaviors,
2
salaries,
or
biometrics
of
the
individual
or
a
group
to
which
3
the
individual
belongs.
4
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