WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
subd. 1 For purposes of sections 325M.51 to 325M.54, the following terms have the meanings given.
subd. 2 "Artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.
subd. 3 "Artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.
subd. 4 "CommissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4" means the commissioner of commerce.
subd. 5 "DeployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5" means a person that implements, integrates, or makes operational an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 in this state. DeployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5 includes a person that makes an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 available for use by others in this state, whether directly or as part of a product or service.
subd. 6 "DeveloperDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6" means a person that develops an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 that is deployed in this state.
subd. 7 "Independent verification organizationIndependent verification organization"Independent verification organization" or "IVO" means an entity licensed by the commissioner pursuant to section 325M.51 to assess an artificial intelligence model's or artificial intelligence application's adherence to standards reflecting best practices for the prevention of personal injury and property damage.Minn. Stat. § 325M.50, subd. 7" or "IVO" means an entity licensed by the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 pursuant to section 325M.51 to assess an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3's or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2's adherence to standards reflecting best practices for the prevention of personal injury and property damage.
subd. 8 "Security vendorSecurity vendor"Security vendor" means a third-party entity engaged by an IVO or developer to evaluate the safety or security of an artificial intelligence model or artificial intelligence application, including by using processes such as risk detection and risk mitigation.Minn. Stat. § 325M.50, subd. 8" means a third-party entity engaged by an IVO or developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 to evaluate the safety or security of an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2, including by using processes such as risk detection and risk mitigation.
This section establishes the defined terms used throughout the bill's IVO framework (§§ 325M.51–325M.54). Key terms include artificial intelligence model and artificial intelligence application as the regulated products, developer and deployer as the parties whose AI systems may be voluntarily verified, and independent verification organization (IVO) as the licensed assessor entity. The definitions are broadly drawn — the AI model definition tracks the OECD definition and covers any engineered or machine-based system that infers how to generate output from input.
subd. 1 1 An application for an independent verification organizationIndependent verification organization"Independent verification organization" or "IVO" means an entity licensed by the commissioner pursuant to section 325M.51 to assess an artificial intelligence model's or artificial intelligence application's adherence to standards reflecting best practices for the prevention of personal injury and property damage.Minn. Stat. § 325M.50, subd. 7 license must be made by filing with the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 the information, materials, and forms specified in rules adopted by the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4.
subd. 2 1 An IVO must file a proposed plan with the IVO's application. The proposed plan must include: (1) the risk or risks that artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 must mitigate. For each risk identified, the plan must include: (i) a proposed definition of acceptable levels of risk; (ii) metrics that are measurable and can be used to determine whether the acceptable level of risk defined by the IVO produces beneficial outcomes; (iii) target levels for the metrics, including data sources the target levels are based on and methods for measurement; and (iv) a description of the evaluation and reporting protocol to determine whether verified artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 meet the outcome metrics on an ongoing basis; (2) proposed technical, operational, governance, and other mitigation requirements for developersDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 or deployersDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5, including procedures for predevelopment and postdevelopment, to ensure acceptable levels of risk, including: (i) ongoing monitoring risks; and (ii) ongoing assessment of mitigation efficacy; (3) methodologies and sources used to evaluate the efficacy of mitigation requirements; (4) benchmarks, technologies, and audit methodologies proposed to assess developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 and deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5 adherence to mitigation requirements; (5) an approach to assessing continued good standing of a verified artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2, including reviewing and evaluating the developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6's or deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5's maintenance of artificial intelligence governance plans and policies, processes for risk monitoring and mitigation, whistleblower protections, and training for employees and third parties; (6) disclosure requirements for developersDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 or deployersDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5 related to detected risks, incident reports, or material changes to risk profiles, including both risks detected before verification and risks resulting from fine-tuning or modifying an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 after verification; (7) procedures for prescribing and verifying implementation of corrective actions to remedy a developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6's or deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5's identified failure to: (i) achieve an acceptable level of risk with respect to an artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 or artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3; (ii) comply with any other mitigation requirements promulgated by the applicant; and (iii) comply with the developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6's or deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5's artificial intelligence governance plan and policy; (8) standards and procedures for revoking verification for noncompliance with the applicant's mitigation requirements, failure to achieve acceptable levels of risk, or noncompliance with the developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6's or deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5's artificial intelligence governance plans and policies; (9) whether the applicant proposes risk-specific verification and how plans are tailored to the specific risk; (10) coordination with federal and state authorities; (11) personnel qualifications; (12) governance policies, sources of funding, and policies ensuring independence; and (13) any other information required by the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4.
subd. 3(a)–(d) The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 may license an applicant if the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 finds: (1) the applicant demonstrated independence from the artificial intelligence community; and (2) every element of the applicant's proposed plan is adequate to ensure that artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 verified pursuant to the plan mitigate one or more risks to an acceptable level. (b) If verification is proposed to a specific risk, the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must evaluate the plan's adequacy accordingly. (c) If the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 finds that an applicant's plan does not adequately mitigate all of the proposed risks, the applicant must be licensed to verify only those risks for which the plan is deemed adequate. (d) The license must specify: (1) the risks the IVO is authorized to verify; and (2) any markets the license applies to.
subd. 4 The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must revoke an IVO license if the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 determines: (1) the IVO's plan is materially misleading or inaccurate; (2) the IVO fails to adhere to the IVO's plan in a way that materially impairs the IVO's responsibilities, including failure to adhere to the plan's procedures for ongoing monitoring of verified artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 and implementation of corrective action; (3) a material change compromises independence from the artificial intelligence industry; (4) technological evolution renders methods obsolete for ensuring acceptable levels of the risk the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 has designated the IVO to verify; or (5) a verified artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 causes material harm of the type the IVO defines an acceptable level of risk in order to prevent.
subd. 5 The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 may allow an IVO to cure the basis for revocation before terminating the license.
subd. 6 The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must establish reasonable application and renewal fees sufficient to offset administrative costs.
subd. 7 Nothing in this section requires an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 to seek IVO verification.
subd. 8 The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 may adopt rules necessary to implement sections 325M.51 to 325M.54.
This section establishes the licensure framework for IVOs. Entities seeking to operate as IVOs must apply to the Commissioner of Commerce with a comprehensive proposed plan covering risk definitions, measurable metrics, mitigation requirements for developers and deployers, evaluation methodologies, corrective-action procedures, and governance safeguards. The commissioner evaluates the plan for adequacy and independence, and may license an IVO for all or only a subset of proposed risk categories.
The section also prescribes grounds for license revocation — including plan inaccuracy, failure to adhere to the plan, loss of independence, technological obsolescence, and material harm from a verified system — and grants the commissioner discretion to allow a cure period before terminating a license. Importantly, subd. 7 makes verification entirely voluntary: no AI model or application is required to seek IVO verification.
subd. 1 2 A licensed IVO must implement the IVO's approved plan.
subd. 2 3 An IVO must revoke verification if a developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 or deployerDeployer"Deployer" means a person that implements, integrates, or makes operational an artificial intelligence model or artificial intelligence application in this state. Deployer includes a person that makes an artificial intelligence model or artificial intelligence application available for use by others in this state, whether directly or as part of a product or service.Minn. Stat. § 325M.50, subd. 5: (1) fails to meet mitigation requirements; (2) fails to cooperate with monitoring; (3) violates governance policies; or (4) fails to implement corrective actions.
subd. 3(a)–(e) 4 An IVO may update or modify: (1) technical and operational requirements; (2) evaluation benchmarks; (3) audit methodologies; (4) governance plans; (5) verification activities to enhance efficacy; and (6) any other element of the IVO's plan in order to take advantage of improved technology. (b) An IVO may address previously discovered issues with the IVO's plan. (c) A notice of material changes must be reported in writing to the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4. The notice shall describe the changes, the rationale for the changes, and an explanation of how the changes better enable the IVO to ensure the requisite level of mitigation of relevant risks. (d) Changes must take effect upon notification. (e) The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 may, within six months after receiving notice of changes, request additional information from the IVO regarding the changes or may issue a written notice rejecting the changes in whole or in part. If the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 rejects the changes, the IVO has 30 days to modify the IVO's plan to comply with the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4's determination and to assess whether artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or applications assessed under the previous plan must be reassessed.
subd. 4(a)–(b) 5 An IVO must submit an annual report to the commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 and chairs and ranking minority members of the legislative committees with jurisdiction over artificial intelligence. The report must include: (1) aggregated information on the capabilities of the artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 and artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 evaluated by the IVO, the observed societal risks and benefits associated with those capabilities, and the potential societal risks and benefits associated with those capabilities; (2) the adequacy of evaluation resources, technical capabilities, and mitigation measures to address observed and potential risks; (3) aggregated results of verification assessments; (4) aggregated and anonymized compliance with prescribed remediation; (5) anonymized descriptions of any additional significant risk the IVO observed while conducting assessments, even if the risk is not one the IVO is licensed to verify; (6) a list of verified artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 and artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2; (7) a description of evaluation methods; and (8) governance or funding changes that affect independence. (b) IVOs may redact trade secrets, sensitive business information, personally identifiable information, and other security-sensitive content.
subd. 4(c) 6 Documentation used in reports must be retained for ten years. An IVO must also retain all documentation relating to the IVO's assessment and verification of artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2, including ongoing monitoring and any subsequent corrective action, for ten years after the relevant activity.
subd. 4(d) The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must publish on the Department of Commerce website redacted versions of reports issued by IVOs.
This section imposes ongoing operational obligations on licensed IVOs. A licensed IVO must implement its approved plan, revoke verification from developers or deployers that fail to meet mitigation requirements or cooperate with monitoring, and report material plan changes to the commissioner in writing. The commissioner retains the power to reject plan modifications within six months of notification.
The annual reporting obligation is substantial: IVOs must submit detailed reports to the commissioner and relevant legislative committees covering aggregated AI capabilities, societal risks and benefits, verification assessment results, compliance with remediation, additional observed risks, a list of verified systems, evaluation methods, and governance changes. All documentation must be retained for ten years. The commissioner must publish redacted versions of IVO reports on the Department of Commerce website.
subd. 1(a)–(b) The council is established within the Department of Commerce. The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must determine the appropriate size of the council and appoint all members. (b) Membership must include at least one civil society representative, including but not limited to nongovernmental organizations, educational and research institutions, public policy institutes, or consumer and business advocacy organizations.
subd. 2(a)–(b) The commissionerCommissioner"Commissioner" means the commissioner of commerce.Minn. Stat. § 325M.50, subd. 4 must delegate powers, including licensing and auditing, to the council. (b) A member must: (1) remain free of undue influence and refrain from any action that could compromise the member's ability to carry out the member's responsibilities or otherwise cast doubt on the member's ability to independently assess artificial intelligence modelsArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationsArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2; (2) refrain from any action or occupation, gainful or not, that is incompatible with the member's duties, including but not limited to employment by a developerDeveloper"Developer" means a person that develops an artificial intelligence model or artificial intelligence application that is deployed in this state.Minn. Stat. § 325M.50, subd. 6 or deployer of artificial intelligence; (3) refrain from owning or acquiring any equity or other interest, directly or indirectly, in a company whose business consists in significant part of developing or deploying artificial intelligence; (4) observe a one-year postemployment restriction from artificial intelligence firms or IVOs; and (5) be qualified to assess IVO plans.
subd. 3(a)–(e) A member must not serve more than two consecutive terms. (b) A member must receive reimbursement for actual and necessary expenses incurred in the discharge of duties. A member may also receive a salary for carrying out the member's duties under this section. (c) A member may be removed for inefficiency, neglect, or malfeasance. (d) A majority of members constitutes a quorum and concurrence of a majority of a quorum is sufficient for the council's determination. (e) The council must keep a record of the council's proceedings, including all considerations relating to the issuance, refusal, renewal, and revocation of an IVO license.
This section establishes an AI Advisory Council within the Department of Commerce to exercise delegated licensing and auditing powers. The commissioner determines the council's size, appoints all members, and must include at least one civil society representative. Members are subject to stringent independence requirements — including prohibitions on employment by AI developers or deployers, restrictions on equity ownership in AI companies, and a one-year post-employment cooling-off period from AI firms and IVOs.
The section addresses administrative mechanics including term limits (two consecutive terms maximum), expense reimbursement, quorum requirements, and recordkeeping. These provisions establish institutional governance for the IVO framework but do not impose compliance obligations on developers, deployers, or IVOs.
7 In a civil action asserting claims for personal injury or property damage caused by an artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2, there is a rebuttable presumption against liability if: (1) the artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 in question was verified by a licensed IVO at the time of the plaintiff's alleged injury; (2) the plaintiff's alleged injury arose from a risk that the IVO was licensed to verify and for which the IVO did verify the artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2; and (3) the artificial intelligence modelArtificial intelligence model"Artificial intelligence model" means an engineered or machine-based system that can, for explicit or implicit objectives, infer from an input received how to generate output that can influence physical or virtual environments.Minn. Stat. § 325M.50, subd. 3 or artificial intelligence applicationArtificial intelligence application"Artificial intelligence application" means a software program or system that uses artificial intelligence to perform tasks that typically require human intelligence.Minn. Stat. § 325M.50, subd. 2 is within the specified market segment, if any, for which the IVO was licensed to conduct verification.
This section creates the bill's primary incentive mechanism for voluntary IVO verification: a rebuttable presumption against liability in civil tort actions. In a personal-injury or property-damage case arising from an AI model or application, the defendant enjoys a rebuttable presumption against liability if three conditions are met: the AI system was verified by a licensed IVO at the time of injury, the injury arose from a risk the IVO was licensed to verify and did verify, and the system was within the IVO's licensed market segment. This is a safe harbor that reduces litigation risk for developers and deployers who submit to voluntary verification, creating a market incentive without mandating compliance.