would reach into almost every corner of state government. Several committee members questioned whether the remaining time in the spring session related to the Third Reading deadline could possibly be met. After a substantial amount of questioning, the bill was pulled before a committee vote was taken. HB 3506 (Didech) Artificial Intelligence Safety - Opposed This bill creates the Artificial Intelligence Safety and Security Protocol Act which mandates a set of standards for publicly available risk assessments and third-party auditing of AI systems. The bill would be inherently problematic from a compliance perspective along with opening the door to many trade secret concerns. The bill passed House Cybersecurity, Data Analytics and I.T. Committee on a vote of 7-4-0 and was never called on the House Floor. HB 3646 (Hernandez, N/Peters) DoIT AI Task Force– Supported HB3646 effectively extends the AI task force that generated a report last year that was used to guide legisla- tion for this session. As AI continues to develop at an incredible speed, a collaborative task force that includes industry has the potential to facilitate better tech-related bills. The bill passed the House 111-0-0. HB3646 was assigned to Senate Executive but was never called. HB 35 (Morgan/Fine) AI Use in Health Insurance– Opposed This bill creates the Artificial Intelligence Systems Use in Health Insurance Act which would regulate insurers’ use of AI in the process of adverse determinations for consumers. The following aspect of the bill is quite broad and prevents insurers from leveraging technology for even the most basic tasks related to claim processing: Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome with regard to the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the de- nial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predic- tive models shall be meaningfully reviewed, in accordance with review procedures determined by Department rules, by an individual with authority to override the AI systems and determinations. Authorizes the Depart- ment to adopt emergency rules to implement the Act and to adopt rules concerning standards for full and fair disclosure of an insurer’s use of AI systems. The bill also authorizes the department to determine a great deal of the details related to the implementation of the bill through rulemaking. Furthermore, it authorizes the adoption of emergency rules which give the in- dustry no opportunity for public comment prior to compliance. HB35 passed the House 79-35-0 but was never called in Senate Executive Committee. HB 1311 (Ness) Employee Class – IRS Guidelines– Opposed The Chamber has been protective of the gig economy and the workers who benefit from being properly clas- sified as independent contractors in order to maintain the work flexibility that they prioritize. This bill has the potential for far-reaching impact and is being followed in three different interest areas within the Chamber Government Relations Team. HB1311 was assigned to House Labor & Commerce Committee but was not called for a vote. 30 | END OF SESSION REPORT
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