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CSSB 177(STA): "An Act relating to disclosure of election-related deepfakes; relating to use of artificial intelligence by state agencies; and relating to transfer of data about individuals between state agencies."

00 CS FOR SENATE BILL NO. 177(STA) 01 "An Act relating to disclosure of election-related deepfakes; relating to use of artificial 02 intelligence by state agencies; and relating to transfer of data about individuals between 03 state agencies." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 15.80 is amended by adding a new section to read: 06 Sec. 15.80.009. Deepfake disclosure requirement. (a) A person may not 07 make or retain the services of another to make an election-related communication that 08 the person knows or reasonably should know includes a deepfake relating to a 09 candidate or proposition without including the following disclosure statement with the 10 election-related communication: "This communication has been manipulated or 11 generated by artificial intelligence or by another means." If the election-related 12 communication includes a print or video component, the statement must be placed in 13 the election-related communication so the statement is easily discernible, and, for a 14 broadcast, cable, satellite, Internet, or other digital communication, the statement must

01 remain onscreen throughout the entirety of the election-related communication. In an 02 election-related communication that consists only of audio, the statement must be read 03 (1) at the beginning of the audio, at the end of the audio, and, if the 04 audio is longer than two minutes in duration, at least once every two minutes during 05 the audio; and 06 (2) in a manner that is easily heard. 07 (b) A person may not remove the disclosure statement described in (a) of this 08 section from an election-related communication that the person knows or reasonably 09 should know includes a deepfake. 10 (c) A person who violates (a) or (b) of this section is liable to a candidate or 11 proposition group for damages suffered as a result of the violation, full reasonable 12 attorney fees, and costs. 13 (d) A candidate or proposition group suffering damages as a result of an 14 election-related communication made in violation of (a) of this section, or the removal 15 of the disclosure statement from an election-related communication in violation of (b) 16 of this section, may bring an action for damages under (c) of this section, or for 17 injunctive relief to prohibit dissemination of the election-related communication. 18 (e) This section does not apply to 19 (1) a deepfake that constitutes satire or parody; 20 (2) a deepfake broadcast by a radio, television, cable, or satellite 21 provider as part of a newscast, news interview, news documentary, or on-the-spot 22 coverage of a news event, if the broadcast clearly acknowledges, through content or 23 disclosure, in a manner easily heard or read by the average listener or viewer, that 24 there are questions about the authenticity of the deepfake; 25 (3) a person who is paid to broadcast an election-related 26 communication made by another person. 27 (f) In this section, 28 (1) "deepfake" means an image, audio recording, or video recording of 29 an individual's appearance, conduct, or spoken words that has been created or 30 manipulated with machine learning, natural language processing, or another 31 computational processing technique in a manner to create a realistic but false image,

01 audio, or video that 02 (A) appears to a reasonable person to depict a real individual 03 saying or doing something that did not actually occur; or 04 (B) provides a fundamentally different understanding or 05 impression of an individual's appearance, conduct, or spoken words than the 06 understanding a reasonable person would have from an unaltered, original 07 version of the media; 08 (2) "election-related communication" means a communication that 09 (A) directly or indirectly identifies a candidate or proposition; 10 and 11 (B) is disseminated to an audience that includes voters who will 12 have the opportunity to vote on the candidate or proposition identified in the 13 communication; 14 (3) "proposition" has the meaning given in AS 15.13.065(c); 15 (4) "proposition group" means a person registered with the Alaska 16 Public Offices Commission to make expenditures in support of or in opposition to a 17 proposition under AS 15.13.050. 18 * Sec. 2. AS 44.99 is amended by adding new sections to read: 19 Article 7. Use by State Agencies of Artificial Intelligence and Data about Individuals. 20 Sec. 44.99.700. Inventory. (a) Every two years, the department shall conduct 21 an inventory of all systems used by state agencies that employ generative artificial 22 intelligence for consequential decisions. Each state agency shall assist the department 23 as necessary. An inventory must include, at a minimum, the following information for 24 each system: 25 (1) the name of the system; 26 (2) the vendor that provides the system, if any; 27 (3) a description of the general capabilities and uses of the system; 28 (4) whether the state agency completed an impact assessment of the 29 system under AS 44.99.710 before the system's implementation; and 30 (5) the date of completion of the most recent state agency impact 31 assessment of the system under AS 44.99.710.

01 (b) The department shall remove from the inventory a system that is no longer 02 used by a state agency. 03 (c) The department shall publish each inventory on the department's Internet 04 website, except as provided in AS 44.99.760. 05 Sec. 44.99.710. Impact assessments. (a) At least once every two years, the 06 head of a state agency that uses a system that employs generative artificial intelligence 07 for consequential decisions shall conduct an impact assessment of the system, except 08 as provided in AS 44.99.760. An impact assessment must include, at a minimum, an 09 analysis of 10 (1) the efficacy of the system; 11 (2) the human oversight involved in the system; 12 (3) the accountability mechanisms in place for the system; 13 (4) the process by which an individual may appeal a decision made or 14 facilitated by the system; 15 (5) the current and potential benefits, liability, and risks to the state 16 from the system, including risks related to cybersecurity and intellectual property and 17 any measures used to mitigate liability and risks; 18 (6) the current and potential effects of the system on the liberty, 19 finances, livelihood, and privacy interests of individuals in the state, including effects 20 from any use of geolocation data by the system; 21 (7) any unlawful discrimination against or unlawful disparate impact 22 on an individual or a group of individuals that has resulted or may result from the 23 system; and 24 (8) the policies and procedures that govern the process of using the 25 system for consequential decisions. 26 (b) A state agency that completes an impact assessment shall provide the 27 assessment to the department, and the head of the agency shall consult with the 28 commissioner of administration to determine future use of the system by the agency. 29 Sec. 44.99.720. Requirements for use of artificial intelligence by state 30 agencies. (a) Except as provided in AS 44.99.760, a state agency that uses a system 31 that employs generative artificial intelligence for consequential decisions shall

01 (1) notify each individual who may be legally or significantly affected 02 by the use of the system; 03 (2) obtain an individual's consent before soliciting or acquiring 04 sensitive personal data from or about the individual that will be used by the system; 05 (3) provide an appeals process that includes manual human review for 06 an individual who is legally or significantly affected by the use of the system; and 07 (4) inform a prospective employee of the state agency about any video 08 interview that involves the use of generative artificial intelligence and obtain the 09 prospective employee's consent before employing generative artificial intelligence. 10 (b) A state agency may not use a system that employs artificial intelligence for 11 consequential decisions if the system involves 12 (1) biometric identification, including facial recognition; 13 (2) emotion recognition; 14 (3) cognitive behavioral manipulation of individuals or groups; or 15 (4) social scoring. 16 (c) A state agency may not use a system that employs artificial intelligence for 17 consequential decisions if the system uses data hosted in a country designated by 18 regulation as a foreign adversary. 19 (d) A state agency may contract with a person for a system that employs 20 artificial intelligence for consequential decisions only if the person has implemented 21 security and privacy controls as specified by the National Institute of Standards and 22 Technology in Special Publication 800-53, Revision 5, published in September 2020 23 or in regulations adopted by the department designating a publication revising or 24 superseding Special Publication 800-53. 25 Sec. 44.99.730. Transfer of data between state agencies. Except as provided 26 in AS 44.99.760 and unless required by law, a state agency may not transfer data 27 about an individual to another state agency without giving notice to the individual. 28 Sec. 44.99.740. Regulations. (a) The department shall adopt regulations under 29 AS 44.62 (Administrative Procedure Act) concerning the development, procurement, 30 implementation, use, and ongoing assessment of systems that employ generative 31 artificial intelligence by state agencies for consequential decisions. Except as provided

01 in AS 44.99.760, the regulations must include, at a minimum, provisions that 02 (1) govern the procurement, implementation, and ongoing assessment 03 of each system; 04 (2) require a state agency to conduct an impact assessment of each 05 system under AS 44.99.710 before its implementation; 06 (3) ensure that a system does not result in unlawful discrimination or 07 an unlawful disparate impact on an individual or a group of individuals; 08 (4) provide for the ongoing assessment of each system; and 09 (5) designate countries that constitute foreign adversaries, considering 10 determinations made by the United States. 11 (b) The department may adopt additional regulations under AS 44.62 12 (Administrative Procedure Act) necessary to implement AS 44.99.700 - 44.99.730. 13 Sec. 44.99.750. Civil liability for harm. (a) An individual who suffers harm 14 as a result of a violation of AS 44.99.700 - 44.99.730, a violation of a regulation 15 adopted under AS 44.99.740, or gross negligence or reckless or intentional misconduct 16 relating to the use of artificial intelligence by a state agency may bring a civil action in 17 the superior court against the state agency. 18 (b) An individual who suffers harm under (a) of this section may recover 19 damages for the harm to the individual, punitive damages under AS 09.17.020, and 20 full reasonable attorney fees and costs in a civil action brought under this section. 21 (c) Nothing in this section authorizes an individual to bring a cause of action 22 against a person other than a state agency. 23 Sec. 44.99.760. Exemptions. (a) AS 44.99.710, 44.99.720(a), 44.99.720(b)(1), 24 44.99.730, and regulations adopted under AS 44.99.740(a) do not apply to systems 25 that the Department of Public Safety uses for investigation of criminal offenses, 26 missing persons, or other exigent circumstances. 27 (b) Information collected under AS 44.99.700(a)(3) related to a system that 28 the Department of Public Safety uses for investigation of criminal offenses, missing 29 persons, or other exigent circumstances may not be included in the inventory 30 published on the department's Internet website under AS 44.99.700(b) and is 31 confidential and not subject to disclosure under AS 40.25.100 - 40.25.295 (Alaska

01 Public Records Act). 02 Sec. 44.99.770. Definitions. In AS 44.99.700 - 44.99.770, 03 (1) "artificial intelligence" means generative artificial intelligence or 04 rules-based artificial intelligence; 05 (2) "biometric identification" means the analysis of an individual's 06 physical or behavioral characteristics to uniquely identify the individual; 07 (3) "cognitive behavioral manipulation" means the use of a subliminal 08 technique for the purpose of influencing an individual's behavior to achieve a desired 09 outcome; 10 (4) "consequential decision" means a conclusion, decision, or 11 judgment by a state agency that can affect an individual's legal rights, employment, 12 finances, health, or licensure; 13 (5) "department" means the Department of Administration; 14 (6) "emotion recognition" means the analysis of an individual's bodily 15 expressions, including facial and verbal expressions, to identify or predict the 16 individual's emotions; 17 (7) "generative artificial intelligence" means a machine-based system 18 designed to operate with varying levels of autonomy that may exhibit adaptiveness 19 after deployment and that, for explicit or implicit objectives, infers how to generate 20 outputs from input the system receives; 21 (8) "individual" means a natural person; 22 (9) "rules-based artificial intelligence" means a computational program 23 or algorithm designed to process information in a logical way that does not produce 24 inferential output beyond its original programming and query parameters; 25 (10) "sensitive personal data" means 26 (A) data that reveals an individual's racial or ethnic origin, 27 political opinions, or religious or philosophical beliefs; 28 (B) an individual's genetic data; 29 (C) an individual's biometric data when used for biometric 30 identification; 31 (D) an individual's geolocation data;

01 (E) an individual's bank account information or financial 02 records; or 03 (F) an individual's social security number or other personal 04 identifier issued to an individual by a government or institution; 05 (11) "social scoring" means evaluating, classifying, rating, or scoring 06 the trustworthiness or social standing of an individual based on behavior or 07 socioeconomic, political, or religious status; 08 (12) "state agency" means the University of Alaska, a public 09 corporation of the state, or a department, institution, board, commission, division, 10 authority, committee, or other administrative unit of the executive branch of state 11 government. 12 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. AS 44.99.750, enacted by sec. 2 of this Act, applies to acts or 15 omissions occurring on or after the effective date of this Act.