Senate Bill S8755

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8755
 
                             I N  S E N A T E
 
                               March 7, 2024
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the state technology law, in relation  to  enacting  the
   New York artificial intelligence ethics commission act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York artificial intelligence ethics commission act".
   § 2. The state technology law is amended by adding a new section 106-c
 to read as follows:
   §  106-C.  1.  NEW YORK ARTIFICIAL INTELLIGENCE ETHICS COMMISSION. THE
 NEW YORK ARTIFICIAL INTELLIGENCE ETHICS COMMISSION (THE "COMMISSION") IS
 HEREBY ESTABLISHED. THE COMMISSION SHALL SERVE AS A REGULATORY  BODY  TO
 ENSURE ETHICAL USE OF ARTIFICIAL INTELLIGENCE (AI) WITHIN NEW YORK STATE
 AGENCIES AND PRIVATE ENTITIES OPERATING WITHIN THE STATE.
   2.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "ARTIFICIAL INTELLIGENCE"  OR  "AI"  SHALL  MEAN  A  MACHINE-BASED
 SYSTEM  THAT  CAN,  FOR  A  GIVEN  SET OF HUMAN-DEFINED OBJECTIVES, MAKE
 PREDICTIONS, RECOMMENDATIONS, OR DECISIONS INFLUENCING REAL  OR  VIRTUAL
 ENVIRONMENTS.
   (B)  "USE" SHALL MEAN THE DEVELOPMENT, DEPLOYMENT, AND OPERATION OF AN
 AI SYSTEM.
   (C) "CRIME" SHALL MEAN ANY OFFENSE RECOGNIZED BY NEW YORK STATE LAW.
   3. THE COMMISSION SHALL CONSIST OF NINE MEMBERS:  THREE  APPOINTED  BY
 THE  GOVERNOR;  TWO  APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
 ONE APPOINTED BY THE MINORITY LEADER OF THE SENATE; TWO APPOINTED BY THE
 SPEAKER OF THE ASSEMBLY; ONE APPOINTED BY THE  MINORITY  LEADER  OF  THE
 ASSEMBLY, REFLECTIVE OF DIVERSE EXPERTISE IN AI TECHNOLOGY, ETHICS, LAW,
 AND PUBLIC POLICY.
   4. THE COMMISSION SHALL:
   (A) ESTABLISH ETHICAL GUIDELINES AND STANDARDS FOR THE DEVELOPMENT AND
 DEPLOYMENT OF AI TECHNOLOGIES;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14787-01-4
              

 S. 8755                             2
 
   (B)  CONDUCT REVIEWS OF AI PROJECTS FOR COMPLIANCE WITH ETHICAL STAND-
 ARDS;
   (C)  PROVIDE EDUCATIONAL RESOURCES FOR NEW YORK STATE AGENCIES AND THE
 PUBLIC ON AI ETHICS;
   (D) ADVISE THE LEGISLATURE ON AI POLICY CONSIDERATIONS;
   (E) RECEIVE AND INVESTIGATE COMPLAINTS REGARDING  UNETHICAL  AI  PRAC-
 TICES; AND
   (F)  DEVELOP CERTIFICATION FOR ETHICAL AI SYSTEMS AND CONDUCT PERIODIC
 AUDITS.
   5. THE COMMISSION HAS THE AUTHORITY TO OVERSEE ANY AI SYSTEM  UTILIZED
 BY:
   (A) STATE AGENCIES, FOR INTERNAL OPERATIONS OR PUBLIC SERVICES; AND
   (B) PRIVATE COMPANIES OPERATING IN NEW YORK STATE, INSOFAR AS THEIR AI
 USAGE IMPACTS NEW YORK RESIDENTS.
   6. NO ENTITY DOING BUSINESS IN THIS STATE SHALL:
   (A)  UTILIZE  AI SYSTEMS THAT SYSTEMATICALLY AND UNFAIRLY DISCRIMINATE
 AGAINST INDIVIDUALS OR GROUPS BASED ON RACE, GENDER, SEXUALITY, DISABIL-
 ITY, OR ANY OTHER PROTECTED CHARACTERISTIC;
   (B) CREATE OR DISSEMINATE FALSE OR MISLEADING  INFORMATION  BY  AN  AI
 SYSTEM TO DECEIVE USERS OR THE PUBLIC;
   (C)  USE  AN  AI  SYSTEM TO UNLAWFULLY SURVEIL, RECORD, OR DISSEMINATE
 INFORMATION ABOUT AN INDIVIDUAL WITHOUT THEIR CONSENT;
   (D) PARTICIPATE IN THE UNAUTHORIZED COLLECTION, PROCESSING, OR DISSEM-
 INATION OF PERSONAL INFORMATION BY AN AI SYSTEM  WITHOUT  THEIR  CONSENT
 SHALL BE DEEMED AN INFRINGEMENT OF PRIVACY;
   (E)  PARTICIPATE  IN  UNAUTHORIZED USE OR REPRODUCTION OF INTELLECTUAL
 PROPERTY THROUGH AI ALGORITHMS;
   (F) FAIL TO IMPLEMENT REASONABLE  SAFEGUARDS,  RESULTING  IN  HARM  OR
 MATERIAL LOSS THROUGH THE USE OF AN AI SYSTEM;
   (G)  CONDUCT  AI  RESEARCH  THAT  IS  HARMFUL  OR WITHOUT THE INFORMED
 CONSENT OF THE SUBJECTS;
   (H) INTENTIONALLY DISRUPT, DAMAGE, OR SUBVERSION OF AN  AI  SYSTEM  TO
 UNDERMINE ITS INTEGRITY OR PERFORMANCE; OR
   (I) PARTICIPATE IN THE UNAUTHORIZED USE OF SOMEONE'S PERSONAL IDENTITY
 OR DATA BY ARTIFICIAL INTELLIGENCE SYSTEMS TO COMMIT FRAUD OR THEFT.
   7.  THE COMMISSION SHALL HAVE THE POWER TO IMPOSE PENALTIES, INCLUDING
 FINES AND INJUNCTIONS FOR VIOLATIONS OF ETHICAL  GUIDELINES  ESTABLISHED
 BY  THE  COMMISSION.  PENALTIES  FOR VIOLATIONS UNDER SUBDIVISION SIX OF
 THIS SECTION SHALL BE AS FOLLOWS:
   (A) WHERE HARM IS NON-ECONOMIC, A CIVIL PENALTY, INCLUDING INJUNCTIONS
 AND OTHER DAMAGES.
   (B) WHERE ECONOMIC HARM IS ESTABLISHED OR THERE IS A SYSTEMATIC BREACH
 OF PRIVACY, CRIMINAL OFFENSES SHALL BE PROSECUTED BY THE ATTORNEY GENER-
 AL.
   8. THE COMMISSION SHALL SUBMIT ANNUAL REPORTS  TO  THE  GOVERNOR,  THE
 TEMPORARY  PRESIDENT  OF  THE  SENATE,  AND  THE SPEAKER OF THE ASSEMBLY
 DETAILING ITS ACTIVITIES, AUDIT RESULTS, AND POLICY RECOMMENDATIONS.
   § 3. This act shall take effect immediately.