[Senate Report 117-82]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 283
117th Congress        }                          {            Report
                                 SENATE
 2d Session           }                          {            117-82
_______________________________________________________________________



                          GOOD AI ACT OF 2021

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3035

            TO ESTABLISH THE ARTIFICIAL INTELLIGENCE HYGIENE
                 WORKING GROUP, AND FOR OTHER PURPOSES



		[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               February 28, 2022.--Ordered to be printed
               
               
               		       __________
               		       
                   U.S. GOVERNMENT PUBLISHING OFFICE     
               
29-010			 WASHINGTON : 2022               
               
               
               
               
               
               
        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
  Andrew C. Dockham, Minority Chief Counsel and Deputy Staff Director
          Sam J. Mulopulos, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk



                                                       Calendar No. 283
117th Congress        }                          {            Report
                                 SENATE
 2d Session           }                          {            117-82

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



 
                          GOOD AI ACT OF 2021

                                _______
                                

               February 28, 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. 3035]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3035) to establish 
the Artificial Intelligence Hygiene Working Group, 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 the Need for Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis of the Bill, as Reported.............2
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. PURPOSE AND SUMMARY

    S. 3035, the Government Ownership and Oversight of Data in 
Artificial Intelligence Act, or the ``GOOD AI Act,'' requires 
the Office of Management and Budget (OMB), in consultation with 
a newly established Artificial Intelligence (AI) Hygiene 
Working Group, to develop acquisition guidance to protect 
privacy and civil liberties, address data ownership, and secure 
AI systems against misuse. Such risk mitigation measures will 
allow the federal government to realize the benefits of these 
technologies in improving operations while better securing the 
United States' economy and national security and protecting 
Americans from harm.\1\
---------------------------------------------------------------------------
    \1\National Security Commission on Artificial Intelligence, Final 
Report (Mar. 1, 2021), at 9.
---------------------------------------------------------------------------

              II. BACKGROUND AND THE NEED FOR LEGISLATION

    Recent executive orders have promoted the use of AI across 
the federal government.\2\ Currently, however, there is little 
guidance for agencies on appropriate acquisition and use of AI. 
This presents a risk of misuse and the potential for 
discrimination impacting individuals and groups.\3\ One concern 
is the ownership and security of data held by the federal 
government, including Americans' personally identifiable 
information. For example, there have been reports that certain 
contractors are uploading and storing data they handle while 
supporting federal agencies into their own databases.\4\ Unlike 
contracts for cybersecurity support, government contracts for 
AI services generally do not include technology-specific 
clauses to protect the ownership and security of government 
data and systems. The GOOD AI Act addresses this gap by 
creating an AI Hygiene Working Group to develop and implement 
such policies for AI acquisition.
---------------------------------------------------------------------------
    \2\Exec. Order No. 13960, 85 Fed. Reg. 78939 (Dec. 3, 2020); see 
also Exec. Order No. 13859, 84 Fed. Re. 3967 (Feb. 11, 2019).
    \3\Brookings Institution Report, Protecting Privacy in an AI-driven 
World (Feb. 10, 2020).
    \4\The Secretive Company That Might End Privacy as We Know It, New 
York Times (Jan. 18, 2020).
---------------------------------------------------------------------------

                        III. LEGISLATIVE HISTORY

    Chairman Gary Peters (D-MI) introduced S. 3035, the GOOD AI 
Act, on October 21, 2021, with Ranking Member Rob Portman (R-
OH) as cosponsor. The bill was referred to the Committee on 
Homeland Security and Governmental Affairs.
    The Committee considered S. 3035 at a business meeting on 
November 3, 2021. The bill, as amended by the Peters Substitute 
Amendment, was ordered reported favorably en bloc by voice vote 
with Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, 
Portman, Johnson, Lankford, Romney, Scott, and Hawley present.

        IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    This section establishes the short title of the bill as the 
``GOOD AI Act of 2021.''

Section 2. Principles and policies for use of artificial intelligence 
        in government

    Subsection (a) provides definitions for the terms 
``agency,'' ``appropriate Congressional committees,'' 
``artificial intelligence,'' ``artificial intelligence 
system,'' and ``Director.''
    Subsection (b) directs the Director of OMB to consider 
recent recommendations of the National Security Commission on 
Artificial Intelligence, principles articulated in Executive 
Order 13960 on promoting trustworthy AI in the federal 
government, and the input of relevant interagency bodies and 
governmental and non-governmental experts when updating 
guidance for federal agencies on the use of AI required by the 
AI in Government Act of 2020. This requirement will sunset four 
years after date of enactment.
    Subsection (c) of Section 2 instructs the OMB Director to 
establish and consult with an AI Hygiene Working Group 
comprised of members from appropriate interagency councils. The 
Working Group must create, and the Director must implement, 
contract requirements for: securing AI systems against misuse, 
unauthorized alteration, degradation, or being rendered 
inoperable; ensuring the protection of privacy, civil rights, 
and civil liberties; and addressing the ownership and security 
of data and other information created. The OMB Director and the 
Working Group are permitted to develop more than one approach 
to these requirements to take into account differing levels of 
risk or other relevant factors, and the requirements must be 
updated every two years, with a sunset ten years after 
enactment. This subsection also requires the OMB Director to 
brief Congress periodically on the implementation of this Act 
until the requirements are fully implemented, and annually 
thereafter, with a ten-year sunset.

                   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. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, January 13, 2021.
Hon. Gary C. Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3035, the GOOD AI 
Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aldo 
Prosperi.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    
    		[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    Artificial Intelligence (AI) allows computer systems to 
perform tasks that typically would require human intelligence. 
S. 3035 would require the Office of Management and Budget (OMB) 
to issue guidance to federal agencies on how to safely and 
securely acquire AI technology. Under the bill, OMB also would 
report to the Congress on the effectiveness of its efforts.
    Based on the costs of similar efforts, CBO estimates that 
publishing guidance and satisfying the reporting requirement 
would cost less than $500,000 over the 2022-2026 period. Such 
spending would be subject to the availability of appropriated 
funds.
    The CBO staff contact for this estimate is Aldo Prosperi. 
The estimate was reviewed by Leo Lex, Deputy Director of Budget 
Analysis.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    Because S. 3035 would not repeal or amend any provision of 
current law, it would make no changes in existing law within 
the meaning of clauses (a) and (b) of paragraph 12 of rule XXVI 
of the Standing Rules of the Senate.

                                  [all]