Regulon.AI — IL-HB-3529 · IL HB 3529 (AI Governance Principles)

Summary

Directs the Illinois Department of Innovation and Technology to adopt rules requiring businesses with 10 or more employees that use AI systems to comply with five principles of AI governance: safety, transparency, accountability, fairness, and contestability. Businesses must publish a plain-language compliance report on their website, updated annually and upon significant system changes, covering design decisions, training data, risk mitigation strategies, and impact assessments. Violations are subject to a $1,000 civil penalty per violation. The Act's substantive requirements are largely skeletal, with specifics delegated to future Department rulemaking.

Enforcement & Penalties

Enforcement Authority

The Department of Innovation and Technology is designated to adopt rules ensuring compliance. Enforcement is through civil penalties imposed under the Act. No private right of action is created. The statute does not specify whether enforcement is complaint-driven or agency-initiated; the mechanism is expected to be defined through rulemaking by the Department.

Penalties

Civil penalty of $1,000 per violation of the Act or rules adopted under the Act. A business is not subject to the penalty if it (1) properly complies with the provisions of the Act and (2) publicly discloses compliance. No injunctive relief, attorney fees, or other remedies are specified.

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 2 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 requiring businesses using AI systems to comply with five governance principles: safety (no harm to individuals), transparency (clear explanations of how systems work and decide), accountability (identifying responsible parties), fairness (preventing bias), and contestability (allowing individuals to challenge AI decisions). The principles themselves are high-level and aspirational as written — the operative compliance details will be determined through future Department rulemaking. Applies only to businesses with 10 or more employees (per 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 a publicly accessible compliance report on their website explaining how they comply with the five AI governance principles. The report must include information on system design, key design decisions (including testing metrics), training data, risk mitigation strategies, and any impact assessments conducted. It must be written in a two-tier format: plain language for general audiences and a more detailed version for specialized audiences who may need to evaluate or challenge the system. The report must be updated annually and whenever significant changes are made to the AI system — such as algorithm modifications, substantial data input changes, or shifts in operational context — with additional triggering events to be defined by Department rulemaking. Applies only to businesses with 10 or more employees.

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.