Laws & Statutes › IL › IL-HB-3529
HB-3529
IL · State · USA
IL
USA
● Failed
Effective Date
2026-01-01
Illinois High-Impact AI Governance Principles and Disclosure Act
Directs the Illinois Department of Innovation and Technology to adopt rules ensuring businesses with 10 or more employees that use AI systems comply with five principles of AI governance: safety, transparency, accountability, fairness, and contestability. Requires covered businesses to publish and annually update on their websites a plain-language report explaining compliance with these principles, including information on system design, training data, risk mitigation, and impact assessments. Violations are subject to a $1,000 civil penalty unless the business complies and publicly discloses compliance. The bill is a rulemaking mandate — the substantive compliance requirements are to be defined by the Department through rulemaking rather than specified in the statute itself. The bill was re-referred to the Rules Committee and did not advance.
Legislative History
2025-02-07 introduced Filed with the Clerk by Rep. Janet Yang Rohr
2025-02-18 introduced First Reading
2025-02-18 committee referral Referred to Rules Committee
2025-03-11 committee referral Assigned to Cybersecurity, Data Analytics, & IT Committee
2025-03-21 committee referral Rule 19(a) / Re-referred to Rules Committee
Mapped Requirements
G-01 AI Governance Program & Documentation G-02 Public Transparency & Documentation
Official Sources
Full Text ↗
Entry Last Reviewed
2026-04-01
AI generated
Summary

Directs the Illinois Department of Innovation and Technology to adopt rules ensuring businesses with 10 or more employees that use AI systems comply with five principles of AI governance: safety, transparency, accountability, fairness, and contestability. Requires covered businesses to publish and annually update on their websites a plain-language report explaining compliance with these principles, including information on system design, training data, risk mitigation, and impact assessments. Violations are subject to a $1,000 civil penalty unless the business complies and publicly discloses compliance. The bill is a rulemaking mandate — the substantive compliance requirements are to be defined by the Department through rulemaking rather than specified in the statute itself. The bill was re-referred to the Rules Committee and did not advance.

Enforcement & Penalties
Enforcement Authority
The Department of Innovation and Technology is directed to adopt rules ensuring compliance. Enforcement mechanism is a civil penalty imposed on businesses for violations of the Act or rules adopted under it. No private right of action is created. No complaint-driven or private suit mechanism is specified; enforcement authority is vested in the Department through its rulemaking and regulatory power.
Penalties
Civil penalty of $1,000 for violation of the Act or rules adopted under the Act, unless the business properly complies with the Act and publicly discloses compliance. No private damages, injunctive relief, or attorney fees provisions. Statutory penalty does not require proof of actual harm.
Who Is Covered
"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.
Compliance Obligations 3 obligations · click obligation ID to open requirement page
G-01 AI Governance Program & Documentation · G-01.1 · Deployer · Automated Decisionmaking
Section 15
Plain Language
The Department of Innovation and Technology must adopt rules ensuring that businesses using AI systems comply with five governance principles: safety (systems must not cause harm), transparency (clear explanations of how systems work and decide), accountability (responsible parties must be identified), fairness (bias prevention and equitable treatment), and contestability (individuals can challenge AI decisions). This is a rulemaking mandate — the statute articulates high-level principles but delegates the substantive compliance requirements to the Department to define through rulemaking. Businesses cannot yet determine their specific compliance obligations until rules are adopted. Applies only to businesses with 10 or more employees (Section 25).
Statutory Text
To address the concerns detailed in the findings in Section 5 of this Act and to ensure that negative impacts of AI system use are prevented, the Department of Innovation and Technology shall adopt rules as may be necessary to ensure that businesses using AI systems are compliant with the 5 principles of AI governance as follows: (1) Safety: Ensuring systems operate without causing harm to individuals. (2) Transparency: Providing clear and understandable explanations of how systems work and make decisions. (3) Accountability: Identifying and holding individuals or companies responsible for the system's performance and outcomes. (4) Fairness: Preventing and mitigating bias to ensure equitable treatment for all individuals. (5) Contestability: Allowing individuals to challenge and seek redress for decisions made by the system.
G-02 Public Transparency & Documentation · G-02.4 · Deployer · Automated Decisionmaking
Section 20(a)
Plain Language
Businesses using AI systems in Illinois must publish on their official website a public report explaining how they comply with the five AI governance principles. The report must be updated annually and whenever significant changes are made to the AI system — such as algorithm modifications, substantial changes to data inputs, or shifts in operational context. The report must cover system design, key design decisions (including testing metrics), training data, risk mitigation strategies, and any impact assessments conducted. It must be written in two tiers: plain language for the general public and a more detailed version for specialized audiences who may need to challenge the system's outputs. The Department of Innovation and Technology will adopt rules to specify additional triggers for updates and further report requirements. Applies only to businesses with 10 or more employees (Section 25).
Statutory Text
(a) The Illinois Department of Innovation and Technology shall adopt rules to ensure that a business using an AI system in Illinois publishes on the business's official Internet website accessible to the public a report explaining compliance with the 5 principles of AI governance iterated in this Act. This report shall: (1) be updated annually and whenever significant changes are made to the AI system, such as modifications to algorithms, substantial alterations to data inputs, or shifts in operational contexts, additional significant change shall be established by the Department of Innovation and Technology; (2) include information on the design, major decisions made during the design process (such as testing metrics), training data, risk mitigation strategies, and any impact assessments conducted; and (3) be written in plain language to ensure accessibility for the general public, while also providing a more detailed explanation for specialized audiences; this 2-level approach ensures clarity for everyone while offering enough depth for those who may need to understand or challenge the system or its outputs, such as in cases of fairness or discrimination.
Other · Automated Decisionmaking
Section 20(b)
Plain Language
Businesses using AI systems face a $1,000 civil penalty for violations of the Act or its implementing rules, unless they both comply with the Act and publicly disclose that compliance. The safe harbor effectively means that a business that complies with the governance principles and publishes the required report is not subject to the penalty. This provision establishes the penalty structure and safe harbor but creates no independent compliance obligation beyond those already stated in Sections 15 and 20(a).
Statutory Text
(b) Any business using AI systems shall be subject to a civil penalty of $1,000 for violation of this Act or rules adopted under this Act unless the business (1) properly complies with the provisions of this Act and (2) publicly discloses compliance with the provisions of this Act.