Read the full stored bill text
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