HB4980 104TH GENERAL ASSEMBLY

LRB104 20302 SPS 33753 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4980

Introduced , by Rep. Abdelnasser Rashid

SYNOPSIS AS INTRODUCED:

New Act

Creates the Meaningful Human Control of Artificial Intelligence Act. Provides that a public employer, including a contractor or subcontractor of the public employer, shall not use or apply, or authorize any procurement, purchase, or acquisition of any service or system using or relying on any automated decision-making system, directly or indirectly, without meaningful and continuing human review when performing specified functions. Provides that an employer seeking to use or apply an automated decision-making system shall conduct an initial impact assessment and an additional impact assessments at least once every 2 years and prior to any material changes to the automated decision-making system. Sets forth provisions concerning anti-retaliation; enforcement by the Department of Labor; and private rights of action.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Meaningful Human Control of Artificial Intelligence Act.

Section 5. Definitions. As used in this Act:

"Automated decision-making system" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to automate, support, or replace human decision-making, without any meaningful human review, including, without limitation, systems that process data and apply predefined rules or machine learning algorithms to analyze the data and generate conclusions, recommendations, outcomes, assumptions, projections, or predictions. "Automated decision-making system" does not include any software used primarily for basic computerized processes, such as calculators, spellcheck tools, autocorrect functions, spreadsheets, electronic communications, or any tool that relates only to internal management affairs, such as inventory control and ordering or processing payments, that does not adversely affect the rights, liberties, benefits, safety, or welfare of any individual in this State.

"Department" means the Department of Labor.

"Director" means the Director of Labor.

"Employee" means any person employed by a public body, State agency, or any entity acting on behalf of a State agency, including, but not limited to, contractors and subcontractors.

"Employer" means a public body or any entity acting on behalf of a public body, including, but not limited to, contractors and subcontractors.

"Independent auditor" means a person or entity that conducts an impact assessment of an automated decision-making system in a manner that exercises objective and impartial judgment on all issues in the scope of the evaluation or assessment.

"Interested party" means an employee with an interest in compliance with this Act, or an exclusive bargaining representative of an employee.

"Material changes" include any enhancements, modifications, upgrades, or updates which add new features or functionality to the automated decision-making system, or which would broaden or modify the applicability of the system that may change the outcome or effect of the system, but does not include routine maintenance, updates to improve security, fix bugs, and minor enhancements to existing features.

"Meaningful human review" means review, oversight, and control of the automated decision-making process by one or more individuals who:

(1) understand the risks, limitations, and functionality of the automated decision-making system, including potential biases, errors, discrepancies, or inaccuracies;

(2) are trained to use the automated decision-making system within the limitations of this Act;

(3) have authority to intervene or alter the decision under review, if an output is suspected to be invalid, inaccurate, or discriminatory or otherwise in violation of this Act and shall reject the output if it cannot be independently corroborated; and

(4) have adequate time and resources to review and evaluate the system in accordance with Section 15.

For the purposes of this definition, "review, oversight, and control" include:

(1) reviewing decisions based, in whole or in part, on data collected through electronic monitoring;

(2) verifying that the information is accurate and current;

(3) reviewing employee requests to correct erroneous data;

(4) exercising independent judgment in making each decision; and

(5) consideration of information other than that collected through electronic monitoring, such as supervisory or managerial evaluations, personnel files, employee work products, or peer reviews.

"Public assistance benefit" means any service or program in the control of a public body or any benefit provided by a public body to individuals or households, including, but not limited to, public assistance, cash assistance, grants, child care assistance, housing assistance, unemployment benefits, transportation benefits, education assistance, domestic violence services, and any other assistance or benefit in the authority of the public body to grant to individuals in the public body including federal programs administered by the public body where the requirements of this act are not explicitly prohibited by federal statute. "Public assistance benefit" does not include any program or service provided directly by the federal government in this State.

"Public body" has the meaning set forth in the Prevailing Wage Act.

"State agency" means any department, public authority, board, bureau, commission, division, office, council, committee, or officer of this State.

Section 10. Use of automated decision-making systems.

(a) An employer shall not use or apply, or authorize any procurement, purchase, or acquisition of any service or system using or relying on any automated decision-making system, directly or indirectly, without meaningful and continuing human review when performing any function that:

(1) is related to the administration of any public assistance program;

(2) will have an adverse impact on the rights, civil liberties, safety, or welfare of any employee in this State; or

(3) affects any statutorily or constitutionally provided rights of an employee.

(b) An employer shall not use or apply any automated decision-making system, directly or indirectly, to perform any function described in subsection (a) without providing:

(1) a notice to any affected employee no later than the time a decision is issued to that employee that a decision concerning the employee was made using an automated decision-making system;

(2) an appeals process for decisions made by automated decision-making system in which an employee is impacted as a direct result of the use of the automated decision-making system; and

(3) the opportunity for an affected employee to have an appropriate alternative review, by an individual working for or on behalf of the employer with respect to the decision, independent of the automated decision-making system.

(c) An employer shall not use or apply any automated decision-making system, directly or indirectly:

(1) to make predictions about an employee's or employment candidate's behavior, beliefs, intentions, personality, emotional state, or other characteristics or behaviors;

(2) to subtract from an employee's wages for time spent exercising the employee's legal rights;

(3) in relation to performance evaluation, hiring, recruitment, discipline, promotion, termination, duties, assignment of work, access to work opportunities, productivity requirements, workplace health and safety, or other terms or conditions of employment for any persons classified as employees, candidates for employment, independent contractors, subcontractors, or interns; or

(4) that involves facial recognition, gait recognition, or emotion recognition technologies.

(d) The use of an automated decision-making system shall not affect:

(1) existing rights of employees covered by a collective bargaining agreement; or

(2) existing representational relationships among labor organizations or bargaining relationships between an employer and a labor organization.

(e) The procurement, purchase, acquisition, or use of an automated decision-making system shall not occur without prior notice to a labor organization and negotiations between the employer and any exclusive representatives of potentially affected employees and shall not result in:

(1) discharge, displacement, or loss of position, including partial displacement, such as a reduction in hours, wages, or other employment benefits;

(2) transfer of existing duties and functions currently performed by employees to an automated decision-making system;

(3) transfer of future duties and functions ordinarily performed by employees to an automated decision-making system; or

(4) any negative impact on the rights, benefits, and privileges of all existing employees, including terms and conditions of employment, civil service status, and collective bargaining unit membership, which shall be preserved and protected.

(f) If an automated decision-making system is collecting employee data, employees and their exclusive bargaining representatives have a right to view the data collected by the automated decision-making system.

Section 15. Impact assessments.

(a) An employer seeking to use or apply an automated decision-making system permitted under Section 10 shall conduct an initial impact assessment, 30 days prior to implementation of the automated decision-making system, bearing the signature of:

(1) one or more individuals responsible for meaningful human review of the system; and

(2) an independent auditor.

A person shall not be an independent auditor under this subsection if, at any point in the 5 years preceding the impact assessment, that person: (i) was involved in using, developing, offering, licensing, or deploying the automated decision-making system under review; (ii) had an employment relationship with a developer or deployer that uses, offers, or licenses the automated decision-making system under review; or (iii) had a direct or material indirect financial interest in a developer or deployer that uses, offers, or licenses the automated decision-making system under review.

(b) Following the initial impact assessment, additional impact assessments shall be conducted at least once every 2 years and prior to any material changes to the automated decision-making system. Each impact assessment shall include, in plain language:

(1) a description of the objectives of the automated decision-making system;

(2) an evaluation of the system's ability to achieve those objectives;

(3) a description and evaluation of the algorithms, computational models, and artificial intelligence tools used, including:

(A) a summary of underlying algorithms and artificial intelligence tools; and

(B) a description of the design and training to be used;

(4) testing for:

(A) disparate impact or discrimination based on protected characteristics, including, but not limited to discriminating against, persons based on their race, color, religious creed, national origin, sex, disability or perceived disability, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, ancestry, or status as a veteran and any actions to mitigate any impacts;

(B) accessibility limitations for persons with disabilities;

(C) privacy and job quality impacts, including wages, hours, and conditions and safeguards;

(D) cybersecurity vulnerabilities and safeguards;

(E) public health or safety risks;

(F) foreseeable misuse and safeguards; and

(G) use, storage, and control of sensitive or personal data; and

(5) a notification mechanism for employees impacted by the use of the automated decision-making system.

(c) If an impact assessment finds that an automated decision-making system produces discriminatory, biased, or inaccurate outcomes or fails to meet or negatively impacts any of the measures described in subsection (b) of Section 10, the employer shall immediately cease any use or function of that system and of any information produced by it, and shall take all steps necessary to remedy the discriminatory, biased or inaccurate outcomes produced by the automated decision-making system.

(d) The employer shall notify affected employees and any exclusive bargaining representative, the results of each impact assessment, and provide a copy of the impact assessment upon request.

(e) Each impact assessment shall be published on the employer's website, subject to the limitations set forth in Section 20.

Section 20. Submission of an impact assessment.

(a) Each impact assessment conducted by a State agency under this Act shall be submitted to the Governor and the General Assembly at least 30 days prior to implementation of the automated decision-making system that is the subject of the assessment. Each impact assessment conducted by any other public body under this Act shall be submitted to the director of the public body or the executive officers or primary administrator of the relevant governing body at least 30 days prior to implementation of the automated decision-making system that is the subject of the assessment.

(b) If the employer determines that disclosure of any information in the impact assessment would result in a substantial negative impact on public health or safety, infringe upon privacy rights, or significantly impair the employer's ability to protect its information technology or operational assets, the information may be redacted, if an explanatory statement describing the determination process for redaction is published along with the redacted assessment.

(c) If the impact assessment covers technology used to prevent, detect, protect against, or respond to security incidents, identity theft, fraud, harassment, or other illegal activity, the employer may redact related information, if an explanatory statement describing the determination process for redaction is published along with the redacted assessment.

Section 25. Anti-retaliation. An employee shall be protected from termination, disciplinary action, retaliation, or other adverse employment action for refusing to follow the output of an automated decision-making system if:

(1) the employee exercises independent judgment and discretion in the employee's duties, or the employee's duties require State licensure, certification, or accreditation;

(2) the employee notifies a supervisor or manager that the system's output may, in the employee's professional opinion, lead to harm, illegality, or an outcome contrary to the employer's goals, and the employer fails to correct the output;

(3) the employee is engaging in concerted activity for the purpose of mutual aid and protection;

(4) the employee refuses to follow the output in good faith based on training, education, or experience; and

(5) due to urgency, there is insufficient time for correction.

Section 30. Enforcement.

(a) The Department shall inquire into any violation of this Act, shall institute actions for penalties prescribed under this Act, and shall enforce the provisions of this Act. The Director shall adopt rules implementing this Act in accordance with the Illinois Administrative Procedure Act.

(b) Any interested party may file a complaint, no later than 180 days after any alleged violation, with the Department against an entity or employer covered under this Act if there is a reasonable belief that the entity or employer is in violation of this Act. No later than 120 days after the filing of a complaint, the Department shall notify the employer in writing of the filing of a complaint and the nature of the allegations being investigated.

(c) The Department shall have the power to conduct investigations in connection with the administration and enforcement of this Act and any investigator with the Department shall be authorized to visit and inspect, at all reasonable times, any places covered by this Act and any documents related to the determination of whether there is a violation of this Act. The Director or the Director's representative may compel, by subpoena, the attendance and testimony of witnesses and the production of records, papers, and other evidence in any investigation and may administer oaths to witnesses.

(d) The investigation shall provide an opportunity for a public hearing at the request of any party to the review to enable the parties to present information relating to the alleged violation. The parties shall be given written notice of the time and place of the hearing at least 30 days before the hearing. Upon receiving the report of the investigation, the Director shall make findings of fact. If the Director finds that a violation did occur, the Director shall issue a decision incorporating the findings and requiring the party committing the violation to take the affirmative action to abate the violation as the Director deems appropriate, including, but not limited to, the rehiring or reinstatement of the employee or representative of employees to his or her former position and compensating the employee for the time the employee was unemployed. The party that commits the violation shall also be liable to the Department for a penalty of $5,000 for each violation of this Act. If the Director finds that there was no violation, the Director shall issue an order denying the application. An order issued by the Director under this Section shall be subject to judicial review under the Administrative Review Law.

(e) If the Department believes upon investigation that there has been a violation of any of the provisions of this Act, the Department may: (i) issue and cause to be served on any party an order to cease and desist from further violation of the Act; (ii) take affirmative or other action as deemed reasonable to eliminate the effect of the violation; and (iii) assess any civil penalty allowed by this Act.

Section 35. Private right of action. Any interested party or employee aggrieved by a violation of this Act by an employer may bring an action in circuit court, in the county where the alleged offense occurred or where any person who is party to the action resides, without regard to exhaustion of any alternative administrative remedies provided in this Act. An action may be brought by one or more interested parties for and on behalf of themselves and other interested parties similarly situated. If the action is filed, the Department shall not be required to engage in any further investigation or enforcement action. An employee whose rights have been violated under this Act by an employer is entitled to collect: (i) the amount of any wages, salary, employment benefits, or other compensation denied or lost to the employee by reason of the violation, plus an equal amount in liquidated damages; (ii) compensatory damages and an amount up to $500 for each violation of this Act; (iii) in the case of unlawful retaliation, all legal or equitable relief as may be appropriate; and (iv) attorney's fees and costs.