[Senate Report 117-270]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 669
117th Congress    }                                      {      Report
                                 SENATE
 2d Session       }                                      {     117-270
_______________________________________________________________________

                                     


                       ADVANCING AMERICAN AI ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1353

              TO PROMOTE UNITED STATES VALUES AND FULFILL
             AGENCY MISSIONS THROUGH THE USE OF INNOVATIVE
  APPLIED ARTIFICIAL INTELLIGENCE TECHNOLOGIES, AND FOR OTHER PURPOSES












[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]












               December 19, 2022.--Ordered to be printed 
               
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
39-010                   WASHINGTON : 2023                
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
                     Laura W. Kilbride, Chief Clerk










                                                      Calendar No. 669
117th Congress    }                                      {      Report
                                 SENATE
 2d Session       }                                      {     117-270

======================================================================



 
                       ADVANCING AMERICAN AI ACT

                                _______
                                

               December 19, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1353]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1353), to promote 
United States values and fulfill agency missions through the 
use of innovative applied artificial intelligence technologies, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment, in the nature of a 
substitute, and recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                     Page
  I. Purpose and Summary..............................................  1
 II. Background and Need for the Legislation..........................  2
III. Legislative History..............................................  2
 IV. Section-by-Section Analysis of the Bill, as Reported.............  3
  V. Evaluation of Regulatory Impact..................................  5
 VI. Changes in Existing Law Made by the Bill, as Reported............  5

                         I. Purpose and Summary

    S. 1353, the Advancing American AI Act, seeks to bolster 
the security and competitiveness of the United States. The bill 
requires specified federal agencies to rapidly deploy and scale 
leading edge, commercially proven artificial intelligence (AI). 
The bill emphasizes the use of entrepreneurial AI developed in 
the United States to solve challenges that require 
collaboration across agencies and data sources. Further, the 
bill requires agencies to inventory and publish AI use cases to 
inform leaders, the public, and those wishing to do business 
with the government about common challenges. The bill 
establishes mechanisms to guide the acquisition and use of AI 
in government and safeguard privacy, civil rights, and civil 
liberties.

              II. Background and Need for the Legislation

    The race to research, develop, and deploy AI and associated 
technologies underpins a wider strategic competition. The 
United States still retains advantages in critical areas, but 
current trends are concerning. Experts have expressed concern 
about the capability of near-peer competitors, especially 
China, to surpass the United States as the world's leader in AI 
in the next decade if current trends do not change.\1\ At stake 
are the goals and values to which AI system development and AI 
system behavior are aligned. At this critical juncture, the 
United States must leverage its strengths of innovation and 
entrepreneurialism to develop AI systems that are aligned with 
American values such as freedom of speech and assembly, and 
upholding privacy and civil liberties--values shared by most 
democracies.
---------------------------------------------------------------------------
    \1\National Security Commission on Artificial Intelligence, Final 
Report, at 11 (Mar. 1, 2021) (www.nscai.gov/2021-final-report/).
---------------------------------------------------------------------------
    To remain the world's leader in AI, the federal government 
must renew its commitment to investing in innovation. 
Innovation must be supported in the private and academic 
sectors, but also within the federal government. Many AI 
solutions used by federal agencies involve machine learning 
models built for one use case at a time with curated datasets. 
These models work for some applications, but are limited in 
addressing many cross-agency requirements. By leveraging 
breakthroughs by United States entrepreneurs to improve federal 
government missions and processes, this bill would, for 
example, enable agencies to work across organizational 
boundaries more quickly, with less dependence on manual data 
cleansing and standardization, and find innovative solutions to 
efficient and effective governing.
    S. 1353 advances United States interests by leveraging our 
nation's strengths of innovation, entrepreneurialism, and 
democratic values.

                        III. Legislative History

    Senator Gary Peters (D-MI) introduced S. 1353 on April 22, 
2021. Senator Rob Portman (R-OH) joined as a cosponsor on May 
12, 2021. The bill was referred to the Senate Homeland Security 
and Governmental Affairs Committee.
    The Committee considered S. 1353 at a business meeting on 
May 12, 2021. During the meeting, a substitute amendment that 
added clarifying language and technical edits was offered by 
Chairman Peters and adopted by unanimous consent as modified.
    An amendment to add the GOOD Act (S.628) onto the bill was 
offered by Senator Johnson (R-WI), and was not adopted. 
Senators Johnson, Paul, Lankford, Romney, Scott, and Hawley 
voted in the affirmative. Senators Peters, Carper, Hassan, 
Sinema, Rosen, Padilla, Ossoff, and Portman voted in the 
negative.
    The Committee ordered the bill reported favorably as 
amended by the modified Peters substitute amendment by a roll 
call vote of 11 yeas to 3 nays. Senators Peters, Carper, 
Hassan, Sinema, Rosen, Padilla, Ossoff, Portman, Lankford, 
Romney, and Scott voted in the affirmative. Senators Johnson, 
Paul, and Hawley voted in the negative.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section provides that the bill may be cited as the 
``Advancing American AI Act.''

Section 2. Purpose

    This section provides that the purposes of this bill are to 
encourage artificial intelligence-related programs and 
initiatives at agencies, enhance the ability of the federal 
government to translate research advances into artificial 
intelligence applications, promote government-wide adoption of 
modernized business practices and advanced technologies, and 
test and harness applied artificial intelligence to enhance 
mission effectiveness and business practice efficiency.

Section 3. Definitions

    This section defines the terms ``agency,'' ``appropriate 
congressional committees,'' ``artificial intelligence,'' 
``artificial intelligence system,'' and ``Department.''

Section 4. Principles and policies for use of Artificial Intelligence 
        in Government

    The first part of this section references the AI in 
Government Act passed by the Homeland Security and Governmental 
Affairs Committee in the 116th Congress and enacted into law 
last year as part of the Consolidated Appropriations Act of 
2021.\2\ When the OMB Director issues guidance for use of AI 
that is required under the AI in Government Act,\3\ the 
Director must also consider the ``Key Considerations and 
Practices'' published in April 2021 by the National Security 
Commission on Artificial Intelligence, the principles 
articulated in the Trump Administration's December 2020 
Executive Order related to the use of trustworthy AI in 
government, and the input of other enumerated councils and 
experts.\4\
---------------------------------------------------------------------------
    \2\Pub. L. No. 116-260, Division U, Title I (2020).
    \3\Id.
    \4\National Security Commission on Artificial Intelligence, Final 
Report (Mar. 1, 2021) (www.nscai.gov/2021-final-report/); Exec. Order 
No. 13960, 85 Fed. Reg. 78939 (Dec. 3, 2020).
---------------------------------------------------------------------------
    Second, the Secretary of the Department of Homeland 
Security (DHS) is required to issue policies for use of AI at 
DHS within 180 days of the Act's enactment, in consultation 
with other specified DHS officials. This includes policies 
pertaining to AI acquisition, as well as considerations for the 
privacy, civil rights, and civil liberties impacts of AI-
enabled systems and security against misuse of these systems. 
If additional staffing or funding resources are required to 
carry out this work, the Chief Privacy Officer and the Officer 
for Civil Rights and Civil Liberties at DHS are required to 
submit a report to Congress regarding these needs.
    Third, the DHS Inspector General is required to assess, not 
later than 180 days after enactment, training and investments 
that are needed to advance the understanding of AI by employees 
to ensure the integrity of audits and investigations and guard 
against bias in the selection and conduct of audits and 
investigations.
    Fourth, the OMB Director, working with interagency 
councils, is required to develop a means by which to ensure 
that federal contracts for the acquisition of an AI system or 
service address the protection of privacy, civil rights, civil 
liberties, and the security and ownership of government 
information. The Director is required to consult with the 
Secretary of Homeland Security, the Director of the National 
Institute of Standards and Technology, and the Director of 
National Intelligence when developing this strategy, to update 
it regularly, and to brief the appropriate congressional 
committees on it within 90 days of this Act's enactment.
    Finally, there is a sunset clause of five years from 
enactment.

Section 5. Agency inventories and artificial intelligence use cases

    This section requires OMB and agency heads to inventory AI 
use cases, share use cases across agencies, and make these 
inventories available to the public. These inventories must be 
prepared within 60 days of the Act's enactment, and maintained 
continuously for five years.
    The OMB Director is encouraged to establish a central, 
online public directory to make use cases available to the 
public and those wishing to do business with the federal 
government.
    There is a sunset clause of five years from enactment.

Section 6. Rapid pilot, deployment and scale of applied artificial 
        intelligence capabilities to demonstrate modernization 
        activities related to use cases

    This section requires the OMB Director, along with relevant 
interagency councils, to identify and pilot four new use cases 
to apply AI in support of interagency or intra-agency 
modernization initiatives that require linking multiple siloed 
data sources within 270 days of the Act's enactment.
    The Director must ensure that the pilots leverage 
commercially available technologies and systems to support the 
use cases. Priority for selection of pilots goes to those that 
would benefit from privacy-preserving AI or otherwise take into 
account considerations of civil rights and civil liberties.
    Of the four use case pilots, at least one must drive agency 
productivity and efficiency in predictive supply chain and 
logistics (e.g., predictive logistics for disaster response), 
and at least one must address management challenges, such as 
workforce upskilling, tasks requiring laborious analysis, 
compliance, or portfolio management.
    Within three years, the Director and agencies are required, 
in each of the four pilot programs, to establish an AI 
capability that enables collaboration across agencies and 
leapfrogs the current need for manual scrubbing and 
harmonization of data.
    There are reporting requirements throughout, and there is a 
sunset clause of five years after enactment.

Section 7. Enabling entrepreneurs and agency missions

    This section seeks to facilitate the ability of agencies to 
appropriately acquire entrepreneurial AI capabilities.
    The section amends Section 880 of the National Defense 
Authorization Act for Fiscal Year 2017 to extend General 
Services Administration (GSA) and DHS authority to use 
commercial solutions opening pilot program procedures through 
2027, increase the dollar threshold for use of the authority 
from $10 million to $25 million, and revise definitions to 
align with revised statutory definitions of commercial products 
and services. This section also extends DHS other transaction 
authority to carry out research and development and prototype 
projects through 2024.
    Finally, the section encourages GSA to pilot commercial off 
the shelf supply chain risk management tools to improve the 
ability of the federal government to characterize, monitor, 
predict, and respond to supply chain threats and 
vulnerabilities using applied entrepreneurial AI.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

       VI. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 41--PUBLIC CONTRACTS

           *       *       *       *       *       *       *


Subtitle I-- Federal Procurement Policy

           *       *       *       *       *       *       *


Division C--Procurement

           *       *       *       *       *       *       *



CHAPTER 33--PLANNING AND SOLICITATION

           *       *       *       *       *       *       *



SEC. 3301. FULL AND OPEN COMPETITION.

           *       *       *       *       *       *       *


EDITORIAL NOTES

           *       *       *       *       *       *       *



  PILOT PROGRAMS FOR AUTHORITY TO ACQUIRE INNOVATIVE COMERCIAL ITEMS 
           USING GENERAL SOLICITATION COMPETITIVE PROCEDURES

    (a) * * *
    (b) * * *
    (c) Limitation.--The head of an agency may not enter into a 
contract under the pilot program for an amount in excess of 
[$10,000,000] $25,000,000.
    (d) * * *
    (e) * * *
    (f) [Innovative Defined.--In this section, the term 
`innovative' means--
          (1) any new technology, process, or method, including 
        research and development; or
          (2) any new application of an existing technology, 
        process, or method.]
          Definitions.--In this section--
          (1) the term `commercial product'--
                  (A) has the meaning given the term 
                `commercial item' in section 2.101 of the 
                Federal Acquisition Regulation; and
                  (B) includes a commercial product or a 
                commercial service, as defined in sections 103 
                and 103a, respectively, of title 41, United 
                States Code; and
          (2) the term `innovative' means--
                  (A) any new technology, process, or method, 
                including research and development; or
                  (B) any new application of an existing 
                technology, process, or method.
    (g) Termination.--The authority to enter into a contract 
under a pilot program under this section terminates on 
September 30, [2022] 2027.

HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *


TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           *       *       *       *       *       *       *


Subtitle D--Acquisitions

           *       *       *       *       *       *       *


SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.

    (a) Authority.--Until [September 30, 2017] September 30, 
2024, and subject to subsection (d), the Secretary may carry 
out a pilot program under which the Secretary may exercise the 
following authorities:
          (1) * * *
          (2) Prototype projects.--[The Secretary may, under 
        the authority of paragraph (1), carry out prototype 
        projects in accordance with the requirements and 
        conditions provided for carrying out prototype projects 
        under section 845 of the National Defense Authorization 
        Act for Fiscal Year 1994 (PUBLIC LAW 103-160). In 
        applying the authorities of that section 845, 
        subsection (c) of that section shall apply with respect 
        to prototype projects under this paragraph, and the 
        Secretary shall perform the functions of the Secretary 
        of Defense under subsection (d) thereof.]
                  The Secretary--
                  (A) may, under the authority of paragraph 
                (1), carry out prototype projects under section 
                2371b of title 10, United States Code; and
                  (B) in applying the authorities of such 
                section 2371b, the Secretary shall perform the 
                functions of the Secretary of Defense as 
                prescribed in such section.
    (b) * * *
    (c) Additional Requirements
          (1) In general.--The authority of the Secretary under 
        this section shall terminate [September 30, 2017] 
        September 30, 2024, unless before that date the 
        Secretary--
                (A) * * *
                (B) * * *
          (2) * * *
    (d) Definition of Nontraditional Government Contractor
          In this section, the term ``nontraditional Government 
        contractor'' has the same meaning as the term 
        ``nontraditional defense contractor'' as defined in 
        [section 845(e) of the National Defense Authorization 
        Act for Fiscal Year 1994 (PUBLIC LAW 103-160; 10 U.S.C. 
        2371 note)] section 2371b(e) of title 10, United States 
        Code.

                                  [all]