Legislature(2023 - 2024)GRUENBERG 120

03/19/2024 03:00 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 306 AI, DEEPFAKES, CYBERSECURITY, DATA XFERS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HB 225 POSTING OF UNOFFICIAL ELECTION RESULTS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB 306-AI, DEEPFAKES, CYBERSECURITY, DATA XFERS                                                                     
                                                                                                                                
3:03:55 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW  announced that the  first order of business  would be                                                               
HOUSE BILL NO. 306, "An  Act relating to artificial intelligence;                                                               
requiring  disclosure of  deepfakes  in campaign  communications;                                                               
relating to cybersecurity; and relating to data privacy."                                                                       
                                                                                                                                
3:04:18 PM                                                                                                                    
                                                                                                                                
JOSH APPLEBEE,  House Majority  Staff, Alaska  State Legislature,                                                               
provided  a  sponsor  statement  for HB  306,  [included  in  the                                                               
committee  packet] which  read as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     HB 306  establishes policy for  Artificial Intelligence                                                                    
     (AI) use  by state  agencies to ensure  transparent and                                                                    
     fair practices to protect Alaskans  as well as requires                                                                    
     disclosure  on political  deepfakes to  inform Alaskans                                                                    
     when   campaign  information   is   altered  with   the                                                                    
     intention to mislead.                                                                                                      
                                                                                                                                
     With the  increasing availability  of AI  to streamline                                                                    
     work  processes, transparency,  and guidelines  for the                                                                    
     use  of AI  by state  agencies is  paramount to  ensure                                                                    
     appropriate  deployment and  to  protect Alaskans  from                                                                    
     potential      harm.       By      requiring      human                                                                    
     oversight/responsibility  for  AI,  a  publicly  posted                                                                    
     inventory of AI  in use by state  agencies, and regular                                                                    
     impact assessments    that include a  review and public                                                                    
     report of benefits,  liabilities, risks, accountability                                                                    
     mechanisms  in place,  decision  appeal processes,  and                                                                    
     effects  on  the   liberty,  finances,  livelihood  and                                                                    
     privacy interest of individuals  among other items   HB
     306 will ensure AI is  working for the people of Alaska                                                                    
     appropriately.                                                                                                             
                                                                                                                                
     HB  306  ensures  the  public  will  know  when  AI  is                                                                    
     employed  by state  agencies  regarding the  collection                                                                    
     and processing  of personal data and  the generation of                                                                    
     decisions.  The bill  provides important  and necessary                                                                    
     safeguards but also  methods of recourse if  the use of                                                                    
     AI causes  harm to an individual.  Decisions pertaining                                                                    
     to hiring practices,  eligibility for services, license                                                                    
     qualification,  and more,  are no  small matters;  they                                                                    
     impact lives.                                                                                                              
                                                                                                                                
     AI  use   will  also   be  regulated  in   relation  to                                                                    
     "synthetic    media"     or    "political    deepfakes"                                                                    
     disseminated to the public,  including for election and                                                                    
     campaign use.  The generation of  audio, still-imagery,                                                                    
     or video  that is  designed to  create a  fabricated or                                                                    
     intentionally  manipulated account  of an  individual's                                                                    
     appearance,  speech,   or  conduct  is  a   fairly  new                                                                    
     phenomenon.  When   these  digital  alterations   of  a                                                                    
     person,   however,  are   employed   to  spread   false                                                                    
     information with  malevolent intentions to  deceive the                                                                    
     public,  it  is  time  for lawmakers  to  take  up  the                                                                    
     matter. With easily accessible  AI available to develop                                                                    
     deepfakes, the likelihood of  their creation during the                                                                    
     2024 election cycle is inevitable.                                                                                         
                                                                                                                                
     HB  306  requires a  clear  disclosure  on a  political                                                                    
     deepfake  that the  communication has  been manipulated                                                                    
     by  AI. AI  is the  new  digital frontier,  and as  the                                                                    
     rapidly emerging technology  can offer efficiencies and                                                                    
     solutions for  the workplace and  ease of use  even for                                                                    
     non-tech  savvy individuals,  we  will see  it play  an                                                                    
     increasing  role in  work activities  and in  political                                                                    
     communications.                                                                                                            
                                                                                                                                
     The goal  of HB  306 is  to set  appropriate parameters                                                                    
     for state agency use of AI and to protect Alaskans.                                                                        
                                                                                                                                
MR. APPLEBEE reported that artificial intelligence (AI) lobbying                                                                
has increased 185 percent between 2022 and 2023 with over 450                                                                   
organizations participating.  He said  that HB 306 was drafted to                                                               
safeguard  against   bad  actors   and  gain  benefits   of  what                                                               
artificial   intelligence   (AI)   technology   has   to   offer.                                                               
Transparency and  guidelines for  AI usage  are needed  to ensure                                                               
appropriate deployment  to protect Alaskans from  potential harm.                                                               
He said  HB 306 would create  human oversight of AI  and create a                                                               
publicly posted inventory of AI  use by state agencies and manage                                                               
regular impact assessments including  review and public report of                                                               
benefits,  liabilities, risks,  and AI's  affects on  the privacy                                                               
interests of individuals.                                                                                                       
                                                                                                                                
MR.  APPLEBEE  explained that  HB  306  would employ  methods  of                                                               
recourse if the use of AI causes  harm to an individual.  He said                                                               
HB  306 requires  the disclosure  of  political "deepfakes"  when                                                               
campaign information  is altered by  AI technology.   The Federal                                                               
Communications  Commission  (FCC)   recently  made  AI  generated                                                               
voices and robocalls  illegal.  With accessible AI  tools, it has                                                               
never been  easier to create  "deepfakes," and the  likelihood of                                                               
their creation during the upcoming election cycle is inevitable.                                                                
                                                                                                                                
MR.  APPLEBEE  reported  that   many  major  technology  ("tech")                                                               
companies  signed   a  pact   to  voluntarily   adopt  reasonable                                                               
precautions  to  prevent AI  tools  from  being used  to  disrupt                                                               
democratic  elections  around  the  world.    U.S.  Senator  Lisa                                                               
Murkowski introduced  a pact to require  disclaimers on political                                                               
ads  with  images,  audio,  or   video,  that  are  substantially                                                               
generated by  AI.   Similarly, he  said, HB  306 would  require a                                                               
clear  disclosure that  demonstrates that  the communication  has                                                               
been manipulated by AI.                                                                                                         
                                                                                                                                
3:08:45 PM                                                                                                                    
                                                                                                                                
SEAN  MILLS,  House  Majority Staff,  Alaska  State  Legislature,                                                               
provided information about  how AI is regulated  in other states.                                                               
He  said 18  states  enacted legislation  associated  with AI  in                                                               
2023.   He exemplified Connecticut,  which requires  an inventory                                                               
of  all AI  systems that  state  agencies utilize.   Some  states                                                               
enacted  an   AI  advisory  council.     The  Council   of  State                                                               
Governments  identified six  focus areas  for legislation,  which                                                               
include   accountability,   fighting  discrimination,   providing                                                               
transparency  for  state   operations,  providing  data  privacy,                                                               
targeting unsafe  and ineffective  AI systems, and  providing for                                                               
interagency collaboration.   He said  that HB 306  addresses each                                                               
of those six  points.  He said there are  many risks and benefits                                                               
to  AI.    The  proposed legislation  provides  a  launchpad  for                                                               
valuable discussion.                                                                                                            
                                                                                                                                
3:12:04 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW asked about data "xers".                                                                                             
                                                                                                                                
MR. MILLS answered that "xers" is shorthand for transfers.                                                                      
                                                                                                                                
3:12:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  asked  if  the bill  would  cover  state                                                               
agency  generated deepfakes  or system  generated deepfakes  from                                                               
private entities.                                                                                                               
                                                                                                                                
MR. APPLEBEE  responded that  the bill  would address  two parts:                                                               
one  that handles  deepfakes within  the state,  and another  for                                                               
those generated outside the state for campaign purposes.                                                                        
                                                                                                                                
REPRESENTATIVE CARRICK asked about the  cost of the inventory for                                                               
state agency's use of AI for consequential decisions.                                                                           
                                                                                                                                
MR. APPLEBEE said the fiscal note  includes an initial cost of $5                                                               
million, and recurring costs of $2 million per year.                                                                            
                                                                                                                                
3:14:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  noted the importance and  timeliness of the                                                               
bill.   She asked for  the definition of the  term "consequential                                                               
decision" used in the bill.                                                                                                     
                                                                                                                                
MR.  APPLEBEE  referred   to  page  5,  line   21,  which  states                                                               
"consequential decision means a  conclusion decision or judgement                                                               
by a state agency that can  have a legal or significant effect on                                                               
an individual".                                                                                                                 
                                                                                                                                
REPRESENTATIVE STORY asked for a  list of state agencies that may                                                               
be involved with consequential decisions.                                                                                       
                                                                                                                                
MR.  APPLEBEE stated  that HB  306  would cover  any agency  that                                                               
utilizes AI  technology.  The  bill would require  the Department                                                               
of Administration (DOA)  to catalog those uses.   The fiscal note                                                               
assigns  15  programmer positions  that  would  cover each  state                                                               
agency.                                                                                                                         
                                                                                                                                
REPRESENTATIVE STORY asked if all agencies would be included.                                                                   
                                                                                                                                
MR. APPLEBEE said  if the agency decides to use  AI technology to                                                               
make decisions, it would be cataloged.                                                                                          
                                                                                                                                
REPRESENTATIVE STORY asked  how cyber security is  tracked and AI                                                               
is used currently in state departments.                                                                                         
                                                                                                                                
MR. APPLEBEE responded  that he was unsure because  there has yet                                                               
to be an  inventory.  He offered  to reach out to  DOA and follow                                                               
up with more information.                                                                                                       
                                                                                                                                
3:16:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK   asked  how  frequent   state  generated                                                               
deepfakes are and if they are prevalent elsewhere.                                                                              
                                                                                                                                
MR.  APPLEGATE  made   a  distinction  between  the   use  of  AI                                                               
technology and the creation of  deepfakes or synthetic media.  He                                                               
explained  that it  is  unlikely  that a  state  agency would  be                                                               
creating  deepfakes.     State  agencies  may   be  utilizing  AI                                                               
technology to make systems more efficient.                                                                                      
                                                                                                                                
3:18:09 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW announced that HB 306 was held over.                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
HB 306 Article - AI lobbying spikes 185 percent as calls for regulation surge.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article - Alaska political experts give warnings about AI but also cite benefits to campaigns.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article - Absence of AI hosptial rules worries nurses.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article - How AI is quietly changing everyday life.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article - Murkowski, Klobuchar Introduce Bipartisan Legislation to Require Transparency in Political Ads with AI-Generated Content.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article - Tech companies sign accord to combat AI-generated election trickery.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Article FCC Makes AI-Generated Voices in Robocalls Illegal.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Sectional Analysis ver A .pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 Sponsor Statement ver A .pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 306 ver A.pdf HSTA 3/19/2024 3:00:00 PM
HB 306
HB 225 sectional analysis.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 Letters of support.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 DoE website.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 Sponsor statement.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 Supporting Doc - CDT.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 Supporting Doc- Best Practices.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB0225A.pdf HSTA 3/19/2024 3:00:00 PM
HB 225
HB 225 Slide Presentation.pdf HSTA 3/19/2024 3:00:00 PM
HB 225