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HB 3529

AI PRINCIPLES

104th Regular Session Introduced by Janet Yang Rohr

Illinois law would require mid+ sized AI-using businesses to publicly disclose annual reports detailing how they meet five governance principles (safety, transparency, accountabili

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3529

Summary — HB 3529: Illinois High-Impact AI Governance Principles and Disclosure Act

Status: Introduced Feb 18, 2025; Rule 19(a) / Re‑referred to Rules Committee. Effective date (if enacted): January 1, 2026. Companion bill: SB 1577.

Purpose

Establish statewide baseline governance and transparency requirements for businesses that use artificial intelligence (AI) systems, with the goal of reducing harms (bias, opaque decision‑making, unintended outcomes) by requiring rulemaking, public disclosure, and adherence to five enumerated AI governance principles.

Key provisions

  • Creates the "Illinois High‑Impact AI Governance Principles and Disclosure Act."
  • Directs the Illinois Department of Innovation and Technology (DoIT) to adopt rules to implement the Act and enforce compliance for covered businesses.
  • Sets out five principles of AI governance that businesses must meet:
    1. Safety — prevent systems from causing harm to people.
    2. Transparency — provide clear, understandable explanations of system operations and decisions.
    3. Accountability — identify and hold individuals or entities responsible for system performance and outcomes.
    4. Fairness — prevent and mitigate bias to ensure equitable treatment.
    5. Contestability — allow affected individuals to challenge and seek redress for decisions made by the system.
  • Requires covered businesses to publish on their public website a report explaining how they comply with the five principles. The report must:
    • Be updated at least annually and whenever “significant changes” occur to the AI system (DoIT will define “significant change” in rulemaking).
    • Include information on system design, major design decisions (e.g., testing metrics), training data, risk mitigation strategies, and any impact assessments conducted.
    • Use plain language for public accessibility while providing a more detailed technical explanation for specialist audiences (a two‑level approach).
  • Applicability limited to businesses with 10 or more employees.

Enforcement and penalties

  • The bill provides for a civil penalty of $1,000 for violations of the Act or its implementing rules. (The draft text contains a clause indicating the penalty applies unless the business complies and publicly discloses compliance; DoIT rulemaking and final legislative language would clarify enforcement scope and whether penalties are per violation or per business.)

Who is affected

  • For‑profit and non‑profit organizations operating as “businesses” in Illinois that use AI systems and have 10 or more employees.
  • Sectors deploying AI for decision‑making, recommendations, content generation, predictions, or other outputs that affect individuals or communities.

Procedural/timeline notes and implementation

  • DoIT rulemaking is required to define compliance details (including what counts as a significant change and procedural requirements for reporting).
  • Effective date in the bill: January 1, 2026 — giving the Department time to promulgate rules after enactment.
  • Current legislative status: moved through committee stages, reported favorably in committee, placed on the General State Calendar, and re‑referred under Rule 19(a) to Rules Committee as of May 2025.

Practical considerations

  • The public disclosure requirement increases transparency but may raise concerns about proprietary information (training data, model details); the scope and format will be shaped in DoIT rulemaking.
  • The $1,000 penalty is modest relative to likely compliance costs; enforcement approach and remedies will be important for real‑world impact.
  • Organizations should monitor rulemaking for definitions, reporting templates, and timelines to prepare compliance programs, documentation, and public materials.

Compiled from official sources — confirm details with the bill’s official record.

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