Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
HF4544 • 2026
License for artificial intelligence independent verification organizations established, advisory council established, rulemaking authorized, and reports required.
License for artificial intelligence independent verification organizations established, advisory council established, rulemaking authorized, and reports required.
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
-
2026-03-23
House
Introduction and first reading, referred to Commerce Finance and Policy
Official Summary Text
License for artificial intelligence independent verification organizations established, advisory council established, rulemaking authorized, and reports required.
Current Bill Text
Read the full stored bill text
A bill for an act relating to commerce; establishing a license for artificial intelligence independent verification organizations; establishing an advisory council; authorizing rulemaking; requiring reports; proposing coding for new law in Minnesota Statutes, chapter 325M. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [325M.50] DEFINITIONS. new text end new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For purposes of sections 325M.51 to 325M.54, the following terms have the meanings given. new text end new text begin Subd. 2. new text end new text begin Artificial intelligence application. new text end new text begin "Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence. new text end new text begin Subd. 3. new text end new text begin Artificial intelligence model. new text end new text begin "Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments. new text end new text begin Subd. 4. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of commerce. new text end new text begin Subd. 5. new text end new text begin Deployer. new text end new text begin "Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service. new text end new text begin Subd. 6. new text end new text begin Developer. new text end new text begin "Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state. new text end new text begin Subd. 7. new text end new text begin Independent verification organization or IVO. new text end new text begin "Independent verification organization" or "IVO" means an entity licensed by the commissioner pursuant to section 325M.51 to assess an artificial intelligence model's or artificial intelligence application's adherence to standards reflecting best practices for the prevention of personal injury and property damage. new text end new text begin Subd. 8. new text end new text begin Security vendor. new text end new text begin "Security vendor" means a third-party entity engaged by an IVO or developer to evaluate the safety or security of an artificial intelligence model or artificial intelligence application, including by using processes such as risk detection and risk mitigation. new text end Sec. 2. new text begin [325M.51] INDEPENDENT VERIFICATION ORGANIZATION LICENSURE REQUIREMENT. new text end new text begin Subdivision 1. new text end new text begin License required. new text end new text begin An application for an independent verification organization license must be made by filing with the commissioner the information, materials, and forms specified in rules adopted by the commissioner. new text end new text begin Subd. 2. new text end new text begin IVO proposed plan. new text end new text begin An IVO must file a proposed plan with the IVO's application. The proposed plan must include: new text end new text begin (1) the risk or risks that artificial intelligence models or artificial intelligence applications must mitigate. For each risk identified, the plan must include: new text end new text begin (i) a proposed definition of acceptable levels of risk; new text end new text begin (ii) metrics that are measurable and can be used to determine whether the acceptable level of risk defined by the IVO produces beneficial outcomes; new text end new text begin (iii) target levels for the metrics, including data sources the target levels are based on and methods for measurement; and new text end new text begin (iv) a description of the evaluation and reporting protocol to determine whether verified artificial intelligence models or artificial intelligence applications meet the outcome metrics on an ongoing basis; new text end new text begin (2) proposed technical, operational, governance, and other mitigation requirements for developers or deployers, including procedures for predevelopment and postdevelopment, to ensure acceptable levels of risk, including: new text end new text begin (i) ongoing monitoring risks; and new text end new text begin (ii) ongoing assessment of mitigation efficacy; new text end new text begin (3) methodologies and sources used to evaluate the efficacy of mitigation requirements; new text end new text begin (4) benchmarks, technologies, and audit methodologies proposed to assess developer and deployer adherence to mitigation requirements; new text end new text begin (5) an approach to assessing continued good standing of a verified artificial intelligence model or artificial intelligence application, including reviewing and evaluating the developer's or deployer's maintenance of artificial intelligence governance plans and policies, processes for risk monitoring and mitigation, whistleblower protections, and training for employees and third parties; new text end new text begin (6) disclosure requirements for developers or deployers related to detected risks, incident reports, or material changes to risk profiles, including both risks detected before verification and risks resulting from fine-tuning or modifying an artificial intelligence model or artificial intelligence application after verification; new text end new text begin (7) procedures for prescribing and verifying implementation of corrective actions to remedy a developer's or deployer's identified failure to: new text end new text begin (i) achieve an acceptable level of risk with respect to an artificial intelligence application or artificial intelligence model; new text end new text begin (ii) comply with any other mitigation requirements promulgated by the applicant; and new text end new text begin (iii) comply with the developer's or deployer's artificial intelligence governance plan and policy; new text end new text begin (8) standards and procedures for revoking verification for noncompliance with the applicant's mitigation requirements, failure to achieve acceptable levels of risk, or noncompliance with the developer's or deployer's artificial intelligence governance plans and policies; new text end new text begin (9) whether the applicant proposes risk-specific verification and how plans are tailored to the specific risk; new text end new text begin (10) coordination with federal and state authorities; new text end new text begin (11) personnel qualifications; new text end new text begin (12) governance policies, sources of funding, and policies ensuring independence; and new text end new text begin (13) any other information required by the commissioner. new text end new text begin Subd. 3. new text end new text begin License determination. new text end new text begin (a) The commissioner may license an applicant if the commissioner finds: new text end new text begin (1) the applicant demonstrated independence from the artificial intelligence community; and new text end new text begin (2) every element of the applicant's proposed plan is adequate to ensure that artificial intelligence models or artificial intelligence applications verified pursuant to the plan mitigate one or more risks to an acceptable level. new text end new text begin (b) If verification is proposed to a specific risk, the commissioner must evaluate the plan's adequacy accordingly. new text end new text begin (c) If the commissioner finds that an applicant's plan does not adequately mitigate all of the proposed risks, the applicant must be licensed to verify only those risks for which the plan is deemed adequate. new text end new text begin (d) The license must specify: new text end new text begin (1) the risks the IVO is authorized to verify; and new text end new text begin (2) any markets the license applies to. new text end new text begin Subd. 4. new text end new text begin License revocation. new text end new text begin The commissioner must revoke an IVO license if the commissioner determines: new text end new text begin (1) the IVO's plan is materially misleading or inaccurate; new text end new text begin (2) the IVO fails to adhere to the IVO's plan in a way that materially impairs the IVO's responsibilities, including failure to adhere to the plan's procedures for ongoing monitoring of verified artificial intelligence models or artificial intelligence applications and implementation of corrective action; new text end new text begin (3) a material change compromises independence from the artificial intelligence industry; new text end new text begin (4) technological evolution renders methods obsolete for ensuring acceptable levels of the risk the commissioner has designated the IVO to verify; or new text end new text begin (5) a verified artificial intelligence model or artificial intelligence application causes material harm of the type the IVO defines an acceptable level of risk in order to prevent. new text end new text begin Subd. 5. new text end new text begin Cure opportunity. new text end new text begin The commissioner may allow an IVO to cure the basis for revocation before terminating the license. new text end new text begin Subd. 6. new text end new text begin Fees. new text end new text begin The commissioner must establish reasonable application and renewal fees sufficient to offset administrative costs. new text end new text begin Subd. 7. new text end new text begin Verification not required. new text end new text begin Nothing in this section requires an artificial intelligence model or artificial intelligence application to seek IVO verification. new text end new text begin Subd. 8. new text end new text begin Rulemaking. new text end new text begin The commissioner may adopt rules necessary to implement sections 325M.51 to 325M.54. new text end Sec. 3. new text begin [325M.52] INDEPENDENT VERIFICATION ORGANIZATION REQUIREMENTS. new text end new text begin Subdivision 1. new text end new text begin Implementation. new text end new text begin A licensed IVO must implement the IVO's approved plan. new text end new text begin Subd. 2. new text end new text begin Revocation of verification. new text end new text begin An IVO must revoke verification if a developer or deployer: new text end new text begin (1) fails to meet mitigation requirements; new text end new text begin (2) fails to cooperate with monitoring; new text end new text begin (3) violates governance policies; or new text end new text begin (4) fails to implement corrective actions. new text end new text begin Subd. 3. new text end new text begin Plan modification. new text end new text begin (a) An IVO may update or modify: new text end new text begin (1) technical and operational requirements; new text end new text begin (2) evaluation benchmarks; new text end new text begin (3) audit methodologies; new text end new text begin (4) governance plans; new text end new text begin (5) verification activities to enhance efficacy; and new text end new text begin (6) any other element of the IVO's plan in order to take advantage of improved technology. new text end new text begin (b) An IVO may address previously discovered issues with the IVO's plan. new text end new text begin (c) A notice of material changes must be reported in writing to the commissioner. The notice shall describe the changes, the rationale for the changes, and an explanation of how the changes better enable the IVO to ensure the requisite level of mitigation of relevant risks. new text end new text begin (d) Changes must take effect upon notification. new text end new text begin (e) The commissioner may, within six months after receiving notice of changes, request additional information from the IVO regarding the changes or may issue a written notice rejecting the changes in whole or in part. If the commissioner rejects the changes, the IVO has 30 days to modify the IVO's plan to comply with the commissioner's determination and to assess whether artificial intelligence models or applications assessed under the previous plan must be reassessed. new text end new text begin Subd. 4. new text end new text begin Annual reporting. new text end new text begin (a) An IVO must submit an annual report to the commissioner and chairs and ranking minority members of the legislative committees with jurisdiction over artificial intelligence. The report must include: new text end new text begin (1) aggregated information on the capabilities of the artificial intelligence models and artificial intelligence applications evaluated by the IVO, the observed societal risks and benefits associated with those capabilities, and the potential societal risks and benefits associated with those capabilities; new text end new text begin (2) the adequacy of evaluation resources, technical capabilities, and mitigation measures to address observed and potential risks; new text end new text begin (3) aggregated results of verification assessments; new text end new text begin (4) aggregated and anonymized compliance with prescribed remediation; new text end new text begin (5) anonymized descriptions of any additional significant risk the IVO observed while conducting assessments, even if the risk is not one the IVO is licensed to verify; new text end new text begin (6) a list of verified artificial intelligence models and artificial intelligence applications; new text end new text begin (7) a description of evaluation methods; and new text end new text begin (8) governance or funding changes that affect independence. new text end new text begin (b) IVOs may redact trade secrets, sensitive business information, personally identifiable information, and other security-sensitive content. new text end new text begin (c) Documentation used in reports must be retained for ten years. An IVO must also retain all documentation relating to the IVO's assessment and verification of artificial intelligence models or artificial intelligence applications, including ongoing monitoring and any subsequent corrective action, for ten years after the relevant activity. new text end new text begin (d) The commissioner must publish on the Department of Commerce website redacted versions of reports issued by IVOs. new text end Sec. 4. new text begin [325M.53] ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL. new text end new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin (a) The council is established within the Department of Commerce. The commissioner must determine the appropriate size of the council and appoint all members. new text end new text begin (b) Membership must include at least one civil society representative, including but not limited to nongovernmental organizations, educational and research institutions, public policy institutes, or consumer and business advocacy organizations. new text end new text begin Subd. 2. new text end new text begin Duties. new text end new text begin (a) The commissioner must delegate powers, including licensing and auditing, to the council. new text end new text begin (b) A member must: new text end new text begin (1) remain free of undue influence and refrain from any action that could compromise the member's ability to carry out the member's responsibilities or otherwise cast doubt on the member's ability to independently assess artificial intelligence models or artificial intelligence applications; new text end new text begin (2) refrain from any action or occupation, gainful or not, that is incompatible with the member's duties, including but not limited to employment by a developer or deployer of artificial intelligence; new text end new text begin (3) refrain from owning or acquiring any equity or other interest, directly or indirectly, in a company whose business consists in significant part of developing or deploying artificial intelligence; new text end new text begin (4) observe a one-year postemployment restriction from artificial intelligence firms or IVOs; and new text end new text begin (5) be qualified to assess IVO plans. new text end new text begin Subd. 3. new text end new text begin Administration. new text end new text begin (a) A member must not serve more than two consecutive terms. new text end new text begin (b) A member must receive reimbursement for actual and necessary expenses incurred in the discharge of duties. A member may also receive a salary for carrying out the member's duties under this section. new text end new text begin (c) A member may be removed for inefficiency, neglect, or malfeasance. new text end new text begin (d) A majority of members constitutes a quorum and concurrence of a majority of a quorum is sufficient for the council's determination. new text end new text begin (e) The council must keep a record of the council's proceedings, including all considerations relating to the issuance, refusal, renewal, and revocation of an IVO license. new text end Sec. 5. new text begin [325M.54] LIMITED LIABILITY; REBUTTABLE PRESUMPTION. new text end new text begin In a civil action asserting claims for personal injury or property damage caused by an artificial intelligence model or artificial intelligence application, there is a rebuttable presumption against liability if: new text end new text begin (1) the artificial intelligence model or artificial intelligence application in question was verified by a licensed IVO at the time of the plaintiff's alleged injury; new text end new text begin (2) the plaintiff's alleged injury arose from a risk that the IVO was licensed to verify and for which the IVO did verify the artificial intelligence model or artificial intelligence application; and new text end new text begin (3) the artificial intelligence model or artificial intelligence application is within the specified market segment, if any, for which the IVO was licensed to conduct verification. new text end