Senate Study Bill 3014 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON TECHNOLOGY BILL BY CHAIRPERSON McCLINTOCK) A BILL FOR An Act relating to the use of artificial intelligence systems 1 and related software by state agencies for employment and 2 other purposes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5389XC (3) 91 je/js

S.F. _____ Section 1. NEW SECTION . 8.94 Inventory of artificial 1 intelligence systems. 2 1. The department shall maintain an inventory of artificial 3 intelligence systems, as defined in section 19A.1, used by 4 state agencies, as defined in section 19A.1. The department 5 shall issue guidance to state agencies identifying the data 6 elements to be collected and submitted to the department for 7 such inventory, including but not limited to the purpose and 8 uses of the systems. 9 2. The department shall post the inventory on the 10 department’s internet site as soon as practicable. The 11 department shall submit a report with an updated annual 12 inventory from the previous year to the general assembly by 13 January 15. 14 3. The department may withhold information from the 15 inventory if it determines disclosure of the information would 16 jeopardize the security of state information technology assets, 17 or as otherwise prescribed by state law. 18 Sec. 2. NEW SECTION . 19A.1 Definitions. 19 As used in this chapter, unless the context otherwise 20 requires: 21 1. a. “Artificial intelligence system” means a 22 machine-based system to which all of the following apply: 23 (1) The system can, for a given set of human-defined 24 objectives, make predictions, recommendations, or decisions 25 influencing real or virtual environments that, when used, may 26 directly impact the public. 27 (2) The system uses machine-based and human-based inputs 28 to perceive real and virtual environments, abstract such 29 perceptions into models through analysis in an automated 30 manner, and use model inference to formulate options for 31 information or action. 32 b. “Artificial intelligence system” includes but is not 33 limited to systems that use machine learning, large language 34 models, natural language processing, and computer vision 35 -1- LSB 5389XC (3) 91 je/js 1/ 5

S.F. _____ technologies, including generative artificial intelligence. 1 2. “Automated employment decision-making tool” means 2 any software that uses algorithms, computational models, 3 or artificial intelligence techniques, or a combination 4 thereof, to materially automate or replace human decision 5 making regarding employment, including but not limited 6 to wages and other compensation, hiring, selection for 7 recruitment, discipline, promotion, and termination. “Automated 8 employment decision-making tool” does not include any software 9 used primarily for basic computerized processes, such as 10 calculators, spell-checking tools, autocorrect functions, 11 spreadsheets, electronic communications, or any tool that 12 relates only to internal management affairs such as ordering 13 office supplies or processing payments, and that does not 14 materially affect the rights, liberties, benefits, safety, or 15 welfare of any individual in the state. 16 3. “Directly impact the public” means the use of an 17 artificial intelligence system that would control, have a 18 material impact on, or meaningfully influence the outcome 19 of activities that impact the safety, welfare, or rights of 20 the public. Such activities include but are not limited to 21 assessments or decisions about individuals, including in 22 law enforcement, housing, hiring and employment, financial, 23 educational, or health care contexts; decisions regarding 24 access to or eligibility for government benefits; decisions 25 about child welfare; or decisions about the functioning of 26 emergency services or critical infrastructure. 27 4. “State agency” means any unit or official of state 28 government in the executive, legislative, or judicial branch, 29 including but not limited to an authority, board, commission, 30 council, department, or elected or appointed official. 31 Sec. 3. NEW SECTION . 19A.2 Disclosure of automated 32 employment decision-making tools. 33 1. A state agency that uses an automated employment 34 decision-making tool shall publish a list of such tools on 35 -2- LSB 5389XC (3) 91 je/js 2/ 5

S.F. _____ the state agency’s internet site no later than ninety days 1 after each tool is used. The state agency shall submit 2 an annual report on such usage in the previous year to the 3 general assembly by January 15 each year. If the department of 4 administrative services uses such tools on behalf of another 5 state agency, the department of administrative services shall 6 comply with this section on the state agency’s behalf. 7 2. The list and annual report required by subsection 1 shall 8 include all of the following information: 9 a. A description of the automated employment decision-making 10 tool used by the state agency. 11 b. The date that the state agency began use of the tool. 12 c. A summary of the purpose and use of the tool. 13 d. Any other information deemed necessary and relevant by 14 the state agency. 15 Sec. 4. NEW SECTION . 19A.3 Artificial intelligence systems 16 —— prohibited uses. 17 1. A state agency shall not use artificial intelligence 18 systems in a manner that affects any of the following: 19 a. The existing rights, benefits, or privileges of employees 20 pursuant to an existing collective bargaining agreement under 21 chapter 20. 22 b. The existing representational relationships among 23 employee organizations or the collective bargaining 24 relationships between an employer and an employee organization. 25 2. A state agency shall not use artificial intelligence 26 systems in a manner that alters the rights, benefits, or 27 privileges of state agency employees, including but not limited 28 to terms and conditions of employment, civil service status, 29 and collective bargaining rights pursuant to chapter 20. 30 3. A state agency shall not use artificial intelligence 31 systems in a manner that results in the discharge; transfer or 32 loss of position, including involuntary temporary transfer; 33 or reduction in wages, employment benefits, or hours of 34 nonovertime work of state agency employees. 35 -3- LSB 5389XC (3) 91 je/js 3/ 5

S.F. _____ 4. A state agency shall not transfer existing duties or 1 functions performed by state agency employees to an artificial 2 intelligence system. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to the use of artificial intelligence 7 systems and related software by state agencies for employment 8 and other purposes. 9 The bill defines “state agency” as any unit or official of 10 state government in the executive, legislative, or judicial 11 branches, including but not limited to an authority, board, 12 commission, council, department, or elected or appointed 13 official. 14 The bill requires the department of management (DOM) to 15 maintain an inventory of artificial intelligence systems, 16 as defined in the bill, used by state agencies. The bill 17 requires DOM to issue guidance to state agencies regarding 18 the information to be included in the inventory, post the 19 inventory on DOM’s internet site, and submit an annual report 20 on the inventory to the general assembly. The bill authorizes 21 DOM to withhold information from the inventory in specified 22 circumstances. 23 The bill requires a state agency that uses an automated 24 employment decision-making tool, as defined in the bill, for 25 employment-related purposes to publish a list of such tools on 26 its internet site no later than 90 days after each tool is used 27 and submit an annual report to the general assembly on its use 28 of such tools. If the department of administrative services 29 (DAS) uses such tools on behalf of another state agency, DAS 30 shall comply with these requirements on the state agency’s 31 behalf. The bill specifies content of the list and report. 32 The bill prohibits a state agency from specified uses 33 of artificial intelligence systems that affect collective 34 bargaining rights or other employment rights, benefits, 35 -4- LSB 5389XC (3) 91 je/js 4/ 5

S.F. _____ or privileges of state agency employees or that result in 1 discharge, transfer or loss of position, or reduction in wages, 2 employment benefits, or hours of nonovertime work of state 3 agency employees. The bill prohibits a state agency from 4 transferring existing duties or functions performed by state 5 agency employees to an artificial intelligence system. 6 -5- LSB 5389XC (3) 91 je/js 5/ 5