[House Report 118-905]
[From the U.S. Government Publishing Office]


118th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                             { 118-905

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



 
            FEDERAL A.I. GOVERNANCE AND TRANSPARENCY ACT OF
                                 2024

                                _______
                                

 December 18, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Comer, from the Committee on Oversight and Accountability, 
                        submitted the following


                              R E P O R T

                        [To accompany H.R. 7532]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Accountability, to whom was 
referred the bill (H.R. 7532) to amend chapter 35 of title 44, 
United States Code, to establish Federal AI system governance 
requirements, and for other purpose, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Summary and Purpose of Legislation...............................     8
Background and Need for Legislation..............................     9
Section-by-Section Analysis......................................    14
Legislative History..............................................    17
Committee Consideration..........................................    18
Roll Call Votes..................................................    18
Explanation of Amendments........................................    20
List of Related Committee Hearings...............................    20
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    21
Statement of General Performance Goals and Objectives............    21
Application of Law to the Legislative Branch.....................    21
Duplication of Federal Programs..................................    21
Federal Advisory Committee Act Statement.........................    21
Unfunded Mandates Reform Act Statement...........................    22
Earmark Identification...........................................    22
Committee Cost Estimate..........................................    22
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................    22
Changes In Existing Law Made by the Bill, as Reported............    23

    The amendment is as follows:
      Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Federal A.I. Governance and 
Transparency Act of 2024''.

SEC. 2. ESTABLISHMENT OF FEDERAL AGENCY ARTIFICIAL INTELLIGENCE SYSTEM 
           GOVERNANCE REQUIREMENTS.

  (a) Federal AI System Governance.--
          (1) Amendment.--Chapter 35 of title 44, United States Code, 
        is amended by adding at the end the following:

       ``SUBCHAPTER IV--ARTIFICIAL INTELLIGENCE SYSTEM GOVERNANCE

``Sec. 3591. Purposes

  ``The purposes of this subchapter, with respect to the design, 
development, acquisition, use, management, and oversight of artificial 
intelligence in the Federal Government, are to ensure the following:
          ``(1) Actions that are consistent with the Constitution and 
        any other applicable law and policy, including those addressing 
        freedom of speech, privacy, civil rights, civil liberties, and 
        an open and transparent Government.
          ``(2) Any such action is purposeful and performance-driven, 
        including ensuring the following:
                  ``(A) Such action promotes the consistent and 
                systemic treatment of all individuals in a fair, just, 
                and impartial manner.
                  ``(B) The public benefits of such action 
                significantly outweigh the risks.
                  ``(C) The risks and operations of such action do not 
                unfairly and disproportionately benefit or harm an 
                individual or subgroup of the public.
                  ``(D) The risk of such action is assessed and 
                responsibly managed, including before the use of 
                artificial intelligence.
          ``(3) Any application of artificial intelligence is 
        consistent with the use cases for which the artificial 
        intelligence was trained, and the deployers of such application 
        promote verifiably accurate, ethical, reliable, and effective 
        use.
          ``(4) The safety, security, and resiliency of artificial 
        intelligence applications, including resilience when confronted 
        with any systematic vulnerability, adversarial manipulation, 
        and other malicious exploitation.
          ``(5) The purpose, operations, risks, and outcomes of 
        artificial intelligence applications are sufficiently 
        explainable and understandable, to the extent practicable, by 
        subject matter experts, users, impacted parties, and others, as 
        appropriate.
          ``(6) Such action is responsible and accountable, including 
        by ensuring the following:
                  ``(A) Human roles and responsibilities are clearly 
                defined, understood, and appropriately assigned.
                  ``(B) Artificial intelligence is used in a manner 
                consistent with the purposes described in this section 
                and the purposes for which each use of artificial 
                intelligence is intended.
                  ``(C) Such action, as well as relevant inputs and 
                outputs of artificial intelligence applications, are 
                well documented and accountable.
          ``(7) Responsible management and oversight by ensuring the 
        following:
                  ``(A) Artificial intelligence applications are 
                regularly tested against the purposes described in this 
                section.
                  ``(B) Mechanisms are maintained to supersede, 
                disengage, or deactivate applications of artificial 
                intelligence that demonstrate performance or outcomes 
                that are inconsistent with the intended use or this 
                subchapter.
                  ``(C) Engagement with impacted communities.
          ``(8) Transparency in publicly disclosing relevant 
        information regarding the use of artificial intelligence to 
        appropriate stakeholders, to the extent practicable and in 
        accordance with any applicable law and policy, including with 
        respect to the protection of privacy, civil liberties, and of 
        sensitive law enforcement, national security, trade secrets or 
        proprietary information, and other protected information.
          ``(9) Accountability for the following:
                  ``(A) Implementing and enforcing appropriate 
                safeguards necessary to comply with the purposes 
                described in this section and the requirements of this 
                subchapter, for the proper use and functioning of the 
                applications of artificial intelligence.
                  ``(B) Monitoring, auditing, and documenting 
                compliance with those safeguards, as appropriate.
                  ``(C) Providing appropriate training to all agency 
                personnel responsible for the design, development, 
                acquisition, use, management, and oversight of 
                artificial intelligence.

``Sec. 3592. Definitions

  ``In this subchapter:
          ``(1) In general.--Except as provided in paragraph (2), the 
        definitions under sections 3502 shall apply to this subchapter.
          ``(2) Additional definitions.--In this subchapter:
                  ``(A) Administrator.--The term `Administrator' means 
                the Administrator of General Services.
                  ``(B) Appropriate congressional committees.--The term 
                `appropriate congressional committees' means the 
                Committee on Oversight and Accountability of the House 
                of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate.
                  ``(C) Artificial intelligence.--The term `artificial 
                intelligence' has the meaning given the term in section 
                238(g) of the John S. McCain National Defense 
                Authorization Act for Fiscal Year 2019 (Public Law 115-
                232; 10 U.S.C. note prec. 4061).
                  ``(D) Artificial intelligence system.--The term 
                `artificial intelligence system' means any data system, 
                software, application, tool, or utility that operates 
                in whole or in part using dynamic or static machine 
                learning algorithms or other forms of artificial 
                intelligence, whether--
                          ``(i) the data system, software, application, 
                        tool, or utility is established primarily for 
                        the purpose of researching, developing, or 
                        implementing artificial intelligence 
                        technology; or
                          ``(ii) artificial intelligence capability is 
                        integrated into another system or business 
                        process, operational activity, or technology 
                        system.
                  ``(E) Federal artificial intelligence system.--The 
                term `Federal artificial intelligence system' means an 
                artificial intelligence system used in connection with 
                a Federal information system.
                  ``(F) Federal information system.--The term `Federal 
                information system' has the meaning given the term in 
                section 11331(g) of title 40.
                  ``(G) National security system.--The term `national 
                security system' has the meaning given that term in 
                section 3552(b) of title 44.

``Sec. 3593. Authority and functions of the Director

  ``The Director shall oversee the design, development, acquisition, 
use, management, and oversight of Federal artificial intelligence 
systems by agencies to implement the purposes described in section 
3591. In performing such oversight, the Director shall do the 
following:
          ``(1) Develop, coordinate, and oversee the implementation of 
        policies, purposes, standards, and guidelines to ensure 
        appropriate use of Federal artificial intelligence systems and 
        the protection of civil rights, civil liberties, and privacy, 
        including in conformity with section 552a of title 5 and other 
        applicable laws, as well as the integrity of Federal 
        information systems and information technology in accordance 
        with the other requirements of this chapter.
          ``(2) Oversee agency compliance with the requirements of this 
        subchapter, including through any authorized enforcement action 
        under section 11303(b)(5) of title 40 to ensure agency 
        accountability and compliance.
          ``(3) Issue and update, as necessary, guidance to agencies to 
        take steps to advance the governance of Federal artificial 
        intelligence systems, manage risk, and remove relevant barriers 
        to innovation, consistent with the requirements of this 
        subchapter and, as appropriate the standards promulgated under 
        section 22A of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278h-1) pursuant to section 5302 of 
        the William M. (Mac) Thornberry National Defense Authorization 
        Act for Fiscal Year 2021 (15 U.S.C. 9441) that addresses the 
        following:
                  ``(A) The development of policies regarding Federal 
                acquisition, procurement, and use by agencies regarding 
                artificial intelligence, including an identification of 
                the responsibilities of agency officials managing the 
                use of such technology.
                  ``(B) The ownership and protection of data and other 
                information created, used, processed, stored, 
                maintained, disseminated, disclosed, or disposed of by 
                a contractor or subcontractor (at any tier) on behalf 
                of the Federal Government.
                  ``(C) The protection of training data, algorithms, 
                and other components of any Federal artificial 
                intelligence system against misuse, unauthorized 
                alteration, degradation, or being rendered inoperable.
                  ``(D) The removal of barriers to responsible agency 
                use of artificial intelligence, such as information 
                technology, data, workforce, and budgetary barriers, in 
                order to promote the innovative application of those 
                technologies while protecting privacy, civil liberties, 
                civil rights, and economic and national security.
                  ``(E) The establishment of best practices for 
                identifying, assessing, and mitigating any 
                discrimination in violation of title VI of the Civil 
                Rights Act of 1964 (42. U.S.C. 2000d et seq.), or any 
                unintended consequence of the use of artificial 
                intelligence, including policies to--
                          ``(i) identify data used to train artificial 
                        intelligence;
                          ``(ii) identify data analyzed or ingested by 
                        Federal artificial intelligence systems used by 
                        the agencies; and
                          ``(iii) require periodic evaluation of 
                        Federal artificial intelligence systems, as 
                        appropriate.
          ``(4) Issue guidance for agencies to establish a plain 
        language notification process, as necessary and appropriate and 
        in conformity with applicable law, including section 552a of 
        title 5, for individuals or entities impacted by an agency 
        determination that has been based solely on an output from, or 
        substantively and meaningfully informed, augmented, or assisted 
        by a Federal artificial intelligence system, including the 
        contents of any notice, including examples of what the notice 
        may look like in practice.
          ``(5) Issue guidance for agencies to review their appeals 
        process and to make modifications, as necessary and 
        appropriate, to account for determinations made solely by or 
        substantively and meaningfully informed, augmented, or assisted 
        by a Federal artificial intelligence system, including guidance 
        on how an agency provides the impacted individual or entity the 
        opportunity for an alternative review independent of the 
        Federal artificial intelligence system, as appropriate.
          ``(6) Provide guidance and a template for the required 
        contents of the agency plans described in section 3594(6) that 
        uses a uniform resource locator that is in a consistent format 
        across agencies such as the format `agencyname.gov/AI'.
          ``(7) Issue guidance, including a uniform required submission 
        format and criteria for updating entries after significant 
        changes, for the establishment of agency AI governance charters 
        under section 3595, including defining high-risk Federal 
        artificial intelligence systems, and publication under section 
        3596.

``Sec. 3594. Federal agency responsibilities

  ``The head of each agency shall do the following:
          ``(1) Comply with the requirements of this subchapter and 
        related policies, purposes, standards, and guidelines, 
        including those under section 552a of title 5 and in guidance 
        issued by the Director under section 3593.
          ``(2) Ensure that Federal artificial intelligence system 
        management processes are integrated with agency strategic, 
        operational, data, workforce planning, and budgetary planning 
        processes, and other requirements under this chapter.
          ``(3) Ensure that senior agency officials, including the 
        Chief Information Officer, the Chief Data Officer, and the 
        senior agency official for privacy, implement policies and 
        procedures regarding Federal artificial intelligence systems 
        under the control of such officers, assess and reduce any risks 
        to such systems to an acceptable level, and periodically assess 
        and validate management procedures and controls to ensure 
        effective implementation of this subchapter.
          ``(4) Delegate to the agency Chief Information Officer 
        established under section 3506 (or comparable official in an 
        agency not covered by such section) the primary authority and 
        accountability to ensure compliance with the agency 
        requirements under this subchapter in coordination with any 
        other appropriate senior agency official designated by the head 
        of the agency.
          ``(5) Ensure that contracts for the acquisition and 
        procurement of a Federal artificial intelligence system are 
        consistent with the requirements of this subchapter and any 
        guidance issued by the Director under section 3593(3).
          ``(6) Maintain a plan, posted on a publicly available and 
        centralized webpage of the agency and prepared in accordance 
        with the template provided by the Director under section 
        3593(6), to--
                  ``(A) achieve consistency with the requirements of 
                this subchapter and guidance issued by the Director; 
                and
                  ``(B) provide the public information about agency 
                policies and procedures for governing Federal 
                artificial intelligence systems, including the 
                inventory of artificial intelligence use cases required 
                by section 7225(a) of the Advancing American AI Act 
                (subtitle B of title LXXII of Public Law 117-263; 40 
                U.S.C. 11301 note).
          ``(7) Establish procedures for notifying an individual or 
        entity impacted by an agency determination made solely by an 
        output from, or substantively and meaningfully informed, 
        augmented, or assisted by a Federal artificial intelligence 
        system in accordance with guidance issued by the Director under 
        section 3593(4).
          ``(8) Modify the agency appeals process, as necessary and 
        appropriate, to account for determinations made solely by or 
        substantively and meaningfully informed, augmented, or assisted 
        by a Federal artificial intelligence system, and to provide the 
        impacted individual or entity the opportunity for an 
        alternative review independent of the Federal artificial 
        intelligence system, as appropriate, as established by the 
        Director under section 3593(5).
          ``(9) In accordance with guidance issued by the Director 
        under section 3593(7), oversee the establishment of AI 
        governance charters for Federal artificial intelligence 
        systems, including by--
                  ``(A) establishing a process, led by each official 
                identified in section 3594(4) to ensure that each 
                Federal artificial intelligence system has an 
                established AI governance charter that is regularly 
                updated in accordance with the requirements under 
                section 3595 and made publicly available on the webpage 
                under paragraph (6);
                  ``(B) submitting each AI governance charter to the 
                Federal Register not later than 30-days after the 
                initial establishment or termination of the charter, in 
                conformity with guidance from the Director; and
                  ``(C) submitting each AI governance charter to the 
                Administrator for publication in a format established 
                in the Directors guidance in accordance with section 
                3596.
          ``(10) In consultation with the Director, the Director of the 
        Office of Personnel Management, and the Administrator of 
        General Services, conduct regular training programs to educate 
        relevant agency program and management officials, including 
        employees supporting the functions of the Chief Information 
        Officer, the Chief Data Officer, the Evaluation Officer, the 
        senior privacy official, and the statistical official, as 
        appropriate, about the management of Federal artificial 
        intelligence systems and compliance with the requirements of 
        this subchapter, which may be integrated with the training 
        requirements and covered topics established by the Artificial 
        Intelligence Training for the Acquisition Workforce Act (Public 
        Law 117-207; 41 U.S.C. 1703 note).

``Sec. 3595. Agency AI Governance Charters

  ``(a) In General.--In accordance with the guidance established under 
section 3593(7), the head of each agency shall ensure that an accurate 
and complete AI governance charter is established for each Federal 
artificial intelligence system in use by the agency that is designated 
as a high-risk Federal artificial intelligence system or was trained 
on, uses, or produces a record maintained on an individual (as defined 
under section 552a(a) of title 5).
  ``(b) Contents of Charters.--An AI governance charter for a Federal 
artificial intelligence system shall, at a minimum, include the 
following:
          ``(1) The name and an identifying summary of the Federal 
        artificial intelligence system, including the following:
                  ``(A) A descriptive summary of each purpose and 
                relevant use case of the system, as may be documented 
                on the inventory established under section 7225 of the 
                Advancing American AI Act (subtitle B of title LXXII of 
                Public Law 117-263; 40 U.S.C. 11301 note).
                  ``(B) The bureau, department, or office using or 
                operating the system, and to the extent practicable, 
                each program designated on the website required under 
                section 1122(a)(2) of title 31 associated with use of 
                the system.
                  ``(C) The name and direct contact information for a 
                designated agency official responsible for the overall 
                outputs of the system.
                  ``(D) The name and direct contact information for a 
                designated agency official responsible for the ongoing 
                maintenance of the system which may be the same 
                official designated under subparagraph (C).
          ``(2) Information about how the Federal artificial 
        intelligence system was developed and funded, including the 
        following:
                  ``(A) Other individuals or entities that have 
                developed, maintained, managed, and operated the 
                system.
                  ``(B) Information about any relevant Federal award 
                including any associated contract, grant, cooperative 
                agreement, or other transaction agreement.
          ``(3) Information about the training, validation, and testing 
        of the Federal artificial intelligence system, including the 
        following:
                  ``(A) A description of the type of data or data 
                assets used in the training, validation, and testing of 
                the Federal artificial intelligence system or, if such 
                information is not available, a statement describing 
                why such information is not available.
                  ``(B) A designation of whether any of the data or 
                data assets used in training, validating, or testing 
                the Federal artificial intelligence system are 
                classified as an open Government data asset or a public 
                data asset or a designated system of record described 
                under paragraph (7).
                  ``(C) Information on how to access any open 
                Government data asset or public data asset identified 
                under subparagraph (B).
                  ``(D) A listing of audits, testing, or other risk 
                assessments of the Federal artificial intelligence 
                system, including contact information of the individual 
                or entity that conducted such assessments.
          ``(4) Information about ongoing oversight and maintenance of 
        the Federal artificial intelligence system, including a 
        description of the ongoing testing, monitoring, or auditing of 
        the Federal artificial intelligence system, including 
        information about the cadence of testing, as appropriate, and 
        the entity responsible for such testing.
          ``(5) Information about how the system is used by the agency, 
        including--
                  ``(A) the date the agency began using the system and 
                the intended life span of use, if appropriate; and
                  ``(B) whether any agency determinations have been or 
                are intended to be based solely on an output from, or 
                informed, augmented, or assisted by the Federal 
                artificial intelligence system, and--
                          ``(i) a summary of how the Federal artificial 
                        intelligence system or the data or data assets 
                        produced by the Federal artificial intelligence 
                        system is used to inform, augment, or assist in 
                        making these determinations;
                          ``(ii) information about other agencies or 
                        federally funded entities that use or rely on 
                        these determinations; and
                          ``(iii) a description of any associated 
                        notice or modified appeal process as required 
                        under section 3593(4) and 3593(5).
          ``(6) Information about data or data assets produced by the 
        Federal artificial intelligence system, including a description 
        of the data or data assets produced, altered, or augmented by 
        the system, including--
                  ``(A) a designation of whether any of the data or 
                data assets are classified as an open Government data 
                asset or a public data asset or are included in a 
                designated system of record described under paragraph 
                (7);
                  ``(B) information on how to access any such open 
                Government data asset or public data asset identified 
                under subparagraph (A); and
                  ``(C) information about any other agency or federally 
                funded entity known to use or otherwise rely upon the 
                data or data assets identified under this paragraph.
          ``(7) Information on whether the system was trained on, uses, 
        or produces a record maintained on an individual (as defined 
        under section 552a(a) of title 5), including--
                  ``(A) a listing of any designated system of record 
                including a reference to any associated notice in the 
                Federal Register for the establishment or revision of 
                such system of record, as required under section 
                552a(d) of title 5; or
                  ``(B) a description of any system of record that has 
                been exempted under subsection (j) or (k) of section 
                552a of title 5, including the statement required under 
                section 553(c) of title 5 that documents the reasons 
                why the system of records is exempted.
  ``(c) Regular Updates Required.--The head of each agency shall 
establish procedures to ensure that each AI governance charter for the 
agency is updated to capture any significant change to the Federal 
artificial intelligence system, consistent with guidance established in 
section 3593(7) and not less than 30 days after such change has been 
implemented.
  ``(d) Requirement for Publication.--An AI governance charter required 
under subsection (a) shall be made public on the agency webpage noticed 
in the Federal Register, and published on the Federal AI System 
Inventory established under section 3596, in accordance with procedures 
established by the agency under section 3594(9) in conformity with 
guidance issued by the Director under section 3593(7) before a Federal 
artificial intelligence system is used by an agency, except that--
          ``(1) the head of an agency may, with advance approval of the 
        Director and notification to the appropriate congressional 
        committees, including the relevant authorizing committee in the 
        House of Representatives and the Senate, and the relevant 
        agency Inspector General, waive the publication requirement 
        under this subsection; or
          ``(2) in order to protect properly classified national 
        security information, a charter may be submitted to the 
        Director, appropriate congressional committees, including the 
        relevant authorizing committee in the House of Representatives 
        and the Senate, and the relevant agency Inspector General in 
        lieu of the publication requirement of this subsection.
  ``(e) Exemptions.--A Federal artificial intelligence system is exempt 
from the requirements of this section if the system is used--
          ``(1) solely for the purpose of research or development, 
        except that the purposes described and guidance promulgated 
        under this subchapter should inform any such research, 
        development, testing, or evaluation directed at future 
        applications of Federal artificial intelligence systems; or
          ``(2) in a national security system, in whole or in part, if 
        the agency maintains a complete and regularly updated nonpublic 
        version of each AI governance charter in accordance with 
        subsections (a) and (b) and the guidance required by section 
        3593(7).

``Sec. 3596. AI Governance Charter Inventory

  ``The Administrator of General Services shall maintain a single, 
public online interface for centrally cataloging agency AI governance 
charters which shall be known as the `Federal AI System Inventory'. The 
Administrator and the Director shall--
          ``(1) ensure that each agency, as appropriate, submits AI 
        governance charters for publication on the interface, in a 
        publicly accessible machine-readable and open format to 
        facilitate searchability and bulk download of the inventory; 
        and
          ``(2) provide a clear process and mechanism for each agency 
        to make timely revisions and updates.

``Sec. 3597. Independent evaluation

  ``(a) In General.--Not later than 2 years after the date of the 
enactment of this subchapter, and every 2 years thereafter, the 
Inspector General appointed under chapter 4 of title 5 for each agency 
shall perform an independent evaluation of the Federal artificial 
intelligence governance policies and practices of the agency and submit 
to the head of the agency, the Director, and the appropriate 
congressional committees, a report which may include a classified 
annex. The report shall include at a minimum--
          ``(1) an assessment of the comprehensive compliance of the 
        agency with the requirement under section 3595 for each Federal 
        artificial intelligence system in use or maintained by an 
        agency to have an established, and appropriately noticed, AI 
        governance charter, including timely revisions to reflect 
        significant changes and appropriate use of the exemptions 
        described under section 3595(e); and
          ``(2) an assessment of compliance by the agency with 
        artificial intelligence governance policies and practices with 
        the requirements of this subchapter.
  ``(b) Comptroller General.--The Comptroller General shall 
periodically evaluate and submit to Congress a report on the--
          ``(1) effectiveness of agency Federal artificial intelligence 
        system governance policies and practices;
          ``(2) implementation of the requirements of this subchapter 
        by the Director, Administrator, and agencies; and
          ``(3) extent to which the requirements of this subchapter and 
        related implementing guidance and policies reflect technology 
        advancements and provide any legislative recommendations as 
        appropriate.''.
          (2) Table of sections.--The table of sections for chapter 35 
        of title 44, United States Code, is amended by adding at the 
        end the following:

       ``subchapter iv--artificial intelligence system governance

``3591. Purposes.
``3592. Definitions.
``3593. Authority and functions of the Director.
``3594. Federal agency responsibilities.
``3595. Agency AI Governance Charters.
``3596. AI Governance Charter Inventory.
``3597. Independent evaluation.''.

  (b) OMB Guidance.--Not later than 1 year after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget, in consultation with the Director of the National Institute of 
Standards and Technology, the Administrator of General Services, the 
Director of the Office of Science and Technology Policy, and the head 
of any other relevant agency as determined by the Director of the 
Office of Management and Budget, shall issue a memorandum to the head 
of each agency establishing guidance that implements the requirements 
of subchapter IV of title 35 of title 44, as added by this section, 
that--
          (1) does not conflict with the requirements of and uses the 
        working group established under section 7224(d) of the 
        Advancing American AI Act (Public Law 117-263; 40 U.S.C. 11301 
        note); and
          (2) shall be reviewed and updated, as necessary, every 2 
        years for the next 10 years after the first such issuance and 
        periodically thereafter.
  (c) Requirement to List AI Governance Charters in Agency System of 
Records Notice Under the Privacy Act.--Section 552a(e) of title 5, 
United States Code, is amended--
          (1) in paragraph (4)--
                  (A) in subparagraph (H), by striking ``and'' at the 
                end;
                  (B) in subparagraph (I), by striking the semicolon 
                and inserting ``; and''; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(J) a reference to any agency AI governance charter 
                required under section 3595 of title 44 that is 
                associated with a Federal artificial intelligence 
                system which was trained on, uses, or produces records 
                contained within the system of record;'';
          (2) by redesignating paragraphs (11) and (12) as paragraphs 
        (12) and (13), respectively; and
          (3) by inserting after paragraph (10) the following new 
        paragraph:
          ``(11) establish appropriate policies and procedures, in 
        accordance with the requirements of subchapter IV of chapter 35 
        of title 44 to ensure the security, confidentiality, and 
        integrity of records that a Federal artificial intelligence 
        system uses, produces, or modifies;''.
  (d) Technical and Conforming Repeals.--The following are repealed:
          (1) Subsections (a) and (d) of section 7224 of the Advancing 
        American AI Act (subtitle B of title LXXII of Public Law 117-
        263; 40 U.S.C. 11301 note).
          (2) Section 104 of the AI in Government Act of 2020 (Public 
        Law 116-260; 40 U.S.C. 11301 note).
  (e) Contracting Regulations.--Not later than 6 months after the date 
on which the first guidance is established pursuant to subsection (b), 
the Federal Acquisition Regulation shall be revised to--
          (1) implement the amendments made by this section; and
          (2) require that any contractor or subcontractor (at any 
        tier) with the Federal Government that builds, provides, 
        operates, or maintains (pursuant to a contract entered into on 
        or after such date of enactment) Federal artificial 
        intelligence systems is required to provide the information 
        that the agency is required to report in accordance with the 
        guidance issued pursuant to section 3593(5) of title 44, United 
        States Code, as added by subsection (a), and any agency 
        requirement under section 3595(a) of such title.
  (f) Rules of Construction.--
          (1) Agency actions.--Nothing in this Act, or an amendment 
        made by this Act, shall be construed to authorize the head of 
        an agency to take an action that is not authorized by this Act, 
        an amendment made by this Act, or other law.
          (2) Protection of rights.--Nothing in this Act, or an 
        amendment made by this Act, shall be construed to permit the 
        violation of the rights of any individual protected by the 
        Constitution of the United States, including through censorship 
        of speech protected by the Constitution of the United States or 
        unauthorized surveillance.
          (3) Protection of privacy.--Nothing in this Act, or any 
        amendment made by this Act, shall be construed to impinge on 
        the privacy rights of individuals or allow unauthorized access, 
        sharing, or use of personal data.
          (4) Protection of information.--Nothing in this Act, or any 
        amendment made by this Act, shall be construed to require, or 
        otherwise compel, the public disclosure of information that 
        could be withheld under section 552(b) of title 5, United 
        States Code.
  (g) Definitions.--In this section:
          (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 3502 of title 44, United States Code.
          (2) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget, unless otherwise 
        indicated.

                   Summary and Purpose of Legislation

    H.R. 7532 centrally codifies federal agency governance 
policies for the responsible use of artificial intelligence 
(AI) while consolidating and streamlining relevant existing 
laws. In doing so, the bill focuses government resources on 
increasing transparency, oversight, and responsible use of 
Federal AI systems while protecting the public's privacy and 
civil liberties. The bill establishes a new ``Subchapter IV--
Artificial Intelligence System Governance'' in title 44, 
chapter 35 which places the Office of Management and Budget in 
charge of issuing government-wide policy guidance in harmony 
with existing federal IT and data policy requirements. The bill 
also requires public notice of AI systems used by federal 
agencies through AI Governance Charters, including 
identification of testing and validation processes, responsible 
agency officials, maintenance plans, public data assets used or 
modified, impacted personal information records, and downstream 
impacts on agency programs or determinations related to 
financial assistance or regulatory enforcement. The bill 
establishes a Federal AI System Inventory and requires that the 
General Services Administration maintain a single, public 
interface that centrally catalogs the Charters. H.R. 7532 also 
streamlines and consolidates existing law regarding the 
government's use of AI, including requirements for agencies to 
provide protections or safeguards commensurate with the risks 
of Federal AI systems, and repeals repetitive provisions in the 
AI in Government Act of 2020 and the Advancing American AI Act 
of 2022.

                  Background and Need for Legislation

    When used responsibly, AI systems have the potential to 
improve federal government operations, enhance national and 
homeland security, and streamline service delivery.
    Federal agencies have already begun to leverage AI for a 
variety of use cases. For instance, a February 2020 Stanford 
University report submitted to the Administrative Conference of 
the United States (ACUS) found that ``nearly half of the 
federal agencies studied have experimented with AI and related 
machine learning tools.''\1\ The report emphasized that the 
``use of AI-based tools to support government decision-making, 
implementation, and interaction--what could be called 
`algorithmic governance'--already spans the work of the modern 
administrative state.''\2\
---------------------------------------------------------------------------
    \1\David Freeman Engstrom, Daniel E. Ho, Catherine M. Sharkey, and 
Mariano-Florentino Cuellar, Government by Algorithm: Artificial 
Intelligence in Federal Administrative Agencies, (Feb, 2020), https://
law.stanford.edu/wp-content/uploads/2020/02/ACUS-AI-Report.pdf.
    \2\Id.
---------------------------------------------------------------------------
    In a more recent December 2023 report, the U.S. Government 
Accountability Office (GAO) surveyed twenty-three federal 
agencies to better understand their current and planned use of 
AI.\3\ GAO found that twenty of the surveyed agencies were 
using AI and that, collectively, these agencies reported 
approximately 200 instances of AI use and approximately 1,000 
instances of planned AI use.\4\ AI.gov also publicizes AI use 
cases across the federal government and includes a portal for 
professionals and students to join the national AI talent 
surge.\5\
---------------------------------------------------------------------------
    \3\U.S. Gov't accountability off., GAO-24-105980, Artificial 
Intelligence: Agencies Have Begun Implementation but Need to Complete 
Key Requirements, (Dec 12, 2023), https://www.gao.gov/products/gao-24-
105980.
    \4\Id.
    \5\AI.gov, http://ai.gov.
---------------------------------------------------------------------------
    In a number of cases, federal agencies have successfully 
used AI to better achieve their missions. For instance, the 
Department of Homeland Security (DHS) Immigration and Customs 
Enforcement uses AI to ``streamline the process of correcting 
data entry errors.''\6\ The General Services Administration 
(GSA) uses a Solicitation Review Tool to intake and review all 
SAM.gov data to ensure that solicitations contain compliance 
language, flagging those that don't as ``non-compliant''.\7\ 
Further, the State Department, Department of Justice, and 
Centers for Disease Control and Prevention have all reportedly 
used machine-learning models to search for information in 
government record repositories.\8\
---------------------------------------------------------------------------
    \6\Artificial Intelligence Use Case Inventory, Dept. of Homeland 
Security.
    \7\AI Inventory, Tech at GSA, General Services Administration.
    \8\Lewis Kamb, Some U.S. government agencies are testing out AI to 
help fulfill public records requests, NBC News (Aug. 1, 2023).
---------------------------------------------------------------------------
    These use cases vary in both application and maturity but 
nonetheless indicate that the federal government has found 
relevant uses for AI systems to empower existing agency 
missions and streamline programs. The potential benefits of 
responsible government use of AI are enormous; however 
irresponsible or improper use fosters risks to individual 
privacy and the fair and equal treatment of all citizens by 
their government.
    As agencies use AI today and identify use cases for the 
future, Congress must put in place the necessary safeguards in 
H.R. 7532 to protect the public's privacy, civil rights, and 
civil liberties. The public needs to know that their government 
agency missions and programs have mature policies in place to 
capitalize on the benefits of AI while safeguarding against 
`algorithmic based' decision-making that relies solely on AI 
systems without the appropriate governance and transparency 
policies to ensure proper and effective use. Policymakers 
should instead pursue `algorithmic informed' decision-making in 
support of missions and programs through proper governance of 
AI systems and policy design which accounts for the inherent 
limitations of AI systems within certain use cases.
    The federal government already has numerous, established 
policies in place governing federal information systems, data, 
cybersecurity, and procurement that should be leveraged for 
future AI policy development. AI policy that does not engage 
with existing information system level requirements across 
these policy domains will exist outside of the current 
management structure for federal information systems, leading 
to confusion, inefficiency, undue administrative or industry 
burden, and ultimately overlapping or competing legal or policy 
requirements. For instance, legislation governing federal 
agency use of AI should build upon existing areas of law 
governing federal information policy and security (Chapter 35, 
Title 44, U.S. Code) or the acquisition of information 
technology (Chapter 113, Title 40, U.S. Code)--and where 
necessary, repetitive or conflicting requirements and 
definitions should be repealed or harmonized.
    Transparency is an important first step to inform future 
policymaking.\9\ A primary challenge in effective governance of 
AI systems is forming a holistic understanding of the system's 
design and provenance, the context of its use for specific 
applications, and the ongoing monitoring and maintenance of its 
outputs. Transparency requirements around federal agency use of 
AI, such as those included in H.R. 7532, can provide important 
information about government AI systems to the public, internal 
government management, Congress, and stakeholders impacted by 
AI informed outputs.\10\
---------------------------------------------------------------------------
    \9\Alex Engler, The AI Regulatory Toolbox: How Governments Can 
Discover Algorithmic Harms, Brookings (2023), https://
www.brookings.edu/articles/the-ai-regulatory-toolbox-how-governments-
can-discover-algorithmic-harms/.
    \10\Id.
---------------------------------------------------------------------------
    There are certain challenges, however, in establishing 
transparency requirements for AI systems trained on or using 
public information. Faculty from the University of Copenhagen, 
in a recent research article titled, ``The Right to 
Transparency in Public Governance: Freedom of Information and 
the Use of Artificial Intelligence by Public Agencies,'' found 
that:
          [F]or AI algorithms used in public governance, there 
        is the additional problem that the data and knowledge 
        used for creating the algorithm as well as the test 
        data often contain personal information that cannot be 
        made public. Transparency then has to rely on 
        documentation for how the data used for the design and 
        test has been produced instead of access to the 
        underlying test data.\11\
---------------------------------------------------------------------------
    \11\Henrik Palmer Olsen, Thomas Troels Hildebrandt, Cornelius 
Wiesener, Matthias Smed Larsen, and Asbjrn William 
Ammitzbll Flugge. 2024. The Right to Transparency in Public 
Governance: Freedom of Information and the Use of Artificial 
Intelligence by Public Agencies. Digit. Gov.: Res. Pract. 5, 1, Article 
8 (March 2024), 15 pages. https://doi.org/10.1145/3632753.
---------------------------------------------------------------------------
    The challenges in gaining total transparency into AI models 
points to the need to look at AI system transparency and 
governance in the context of the operational environment in 
which these systems reside. In other words, maintaining sound 
policies over federal IT and data supporting AI systems will 
enable better governance over the AI ultimately used by 
agencies. Additionally, transparency policies should be 
designed to enable proper governance internal to governmental 
functions (e.g., enabling oversight functions internal to the 
intelligence community or Congress's oversight role over 
executive branch agencies) while also pursuing public 
transparency requirements in order to enable the appropriate 
levels of operational management, governance, and oversight 
over an AI system's entire lifecycle. Such policies should be 
applied in context of the complexity and corresponding risk 
profile of the AI systems (i.e., simple process automation and 
workflow tools should not require the same level of system 
governance controls as large language models deployed with 
access to sensitive public sector data sets) so as to not 
unnecessarily impede agency adoption.
    In recent years, Congress has passed an assortment of AI-
related legislation, and the Trump and Biden administrations 
have issued a variety of executive orders and policies 
regarding agency use of AI. These initiatives, which are 
outlined below, have produced positive, but at times disjointed 
or contradictory directives for the management of federal 
agency AI systems as such policies and laws have spanned 
multiple Administrations and Congresses while AI technology has 
rapidly evolved.
    In February 2019, President Trump issued Executive Order 
13859 on Maintaining American Leadership in Artificial 
Intelligence, which established the American AI Initiative 
coordinated through the National Science and Technology 
Council.\12\ This initiative directed implementing agencies to 
consider AI as an agency research and development (R&D) 
priority, to increase the non-Federal research community's 
access to data and computing resources for AI R&D, and to 
invest in AI-related educational and workforce development.\13\ 
EO 13859 also directed the OMB Director to issue guidance to 
inform agency approaches to AI applications and 
regulations.\14\
---------------------------------------------------------------------------
    \12\Exec. Order No. 13859, 84 FR 3967 (Feb. 14, 2019).
    \13\Id.
    \14\Id.
---------------------------------------------------------------------------
    In December 2020, President Trump issued Executive Order 
13960 on Promoting the Use of Trustworthy Artificial 
Intelligence in the Federal Government, which directs agencies 
to adhere to a common set of nine principles to guide agency 
design, development, acquisition and use of AI.\15\ EO 13960 
also directs agencies to prepare, and in most cases publish, 
inventories of current and planned uses of AI to foster 
transparency into the federal government's use of AI.\16\
---------------------------------------------------------------------------
    \15\Exec. Order No. 13960, 85 FR 78939 (Dec. 8, 2020).
    \16\Id.
---------------------------------------------------------------------------
    Also in December 2020, Congress enacted the AI in 
Government Act of 2020 (P.L. 116-260 Division U, Title I; 40 
U.S.C. 11301 note), which requires OMB to issue government-wide 
guidance on agency use of AI and agency AI governance 
plans.\17\ This legislation also established an AI occupational 
series for the federal workforce.\18\
---------------------------------------------------------------------------
    \17\Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, 
Div. U, Title I, AI in Govt. Act (2020).
    \18\Id.
---------------------------------------------------------------------------
    In January 2021, Congress enacted the National AI 
Initiative Act of 2020, (P.L. 116-283), which established the 
National Artificial Intelligence Initiative and required the 
White House Office of Science and Technology Policy (OSTP) to 
establish or designate the National Artificial Intelligence 
Initiative Office to coordinate ongoing AI research, 
development, and demonstration activities across the federal 
government and carry out additional responsibilities with 
respect to this initiative.\19\ This legislation also requires 
the National Institute of Standards and Technology (NIST) to 
develop voluntary standards for artificial intelligence 
systems.\20\
---------------------------------------------------------------------------
    \19\William M. (Mac) Thornberry National Defense Authorization Act 
for Fiscal Year 2021, Pub. L. No. 116-283, Title XLVII, Div. E, 
National Artificial Intelligence Initiative Act of 2020 (2021).
    \20\Id.
---------------------------------------------------------------------------
    In October 2022, Congress enacted the AI Training for the 
Acquisition Workforce Act, (P.L. 117-40; 41 U.S.C. 1703 note), 
which requires OMB and GSA to provide a training program on AI 
for the program management and acquisition workforce to ensure 
they have knowledge of the capabilities and risks associated 
with AI.\21\
---------------------------------------------------------------------------
    \21\Artificial Intelligence Training for the Acquisition Workforce 
Act, Pub. L. No. 117-207 (2022).
---------------------------------------------------------------------------
    In October 2022, President Biden's OSTP issued a Blueprint 
for an AI Bill of Rights, which is a white paper providing non-
binding, directional guidance regarding the development and use 
of AI systems that ``have the potential to meaningfully impact 
the American public's rights, opportunities, or access to 
critical resources or services.''\22\ The Blueprint does not 
constitute U.S. government policy.\23\
---------------------------------------------------------------------------
    \22\Blueprint for an AI Bill of Rights: Making Automated Systems 
Work for the American People, WhiteHouse.Gov, (October 2022).
    \23\Id.
---------------------------------------------------------------------------
    In December 2022, Congress enacted the Advancing American 
AI Act, (P.L. 117-263, Title LXXII, Subtitle B; 40 U.S.C. 11301 
note), which expands the AI in Government Act of 2020 by 
directing OMB to also consider Executive Order 13960, cross-
government input, and the recommendations form the National 
Security Commission on Artificial Intelligence while developing 
the guidance required by that legislation.\24\ This legislation 
also encourages OMB to designate a centralized, public 
inventory of AI use cases and requires OMB to identify four new 
use cases where AI can support interagency modernization 
initiatives to improve operations across organizational 
boundaries, including to ``drive agency productivity 
efficiencies'' or ``accelerate agency investment return''.\25\
---------------------------------------------------------------------------
    \24\James M. Inhofe National Defense Authorization Act for Fiscal 
Year 2023, Pub. L. No. 117-263, Title LXXII, Subtitle B, Advancing 
American AI Act (2022).
    \25\Id.
---------------------------------------------------------------------------
    In January 2023, NIST issued an AI Risk Management 
Framework (AI RMF 1.0), which is a voluntary framework 
developed by NIST to inform responsible development and use of 
AI systems.\26\
---------------------------------------------------------------------------
    \26\National Institute of Standards and Technology, NIST AI 100-1, 
Artificial Intelligence Risk Management Framework (AI RMF 1.0) (January 
2023).
---------------------------------------------------------------------------
    In October 2023, President Biden issued Executive Order 
14110 on the Safe, Secure, and Trustworthy Development and Use 
of Artificial Intelligence, which establishes eight guiding 
principles and includes dozens of new reforms, guidelines, 
rules, and programs across eight key workstreams. EO 14110 
tasks over 50 federal entities with approximately 150 distinct 
requirements.\27\ EO 14110 also includes several requirements 
and guidelines for federal agency use of AI, including a 
requirement that the Technology Modernization Board consider 
prioritizing AI projects when awarding funds from the 
Technology Modernization Fund; a requirement that agencies 
implement or increase the availability of AI training programs 
from employees, managers, and leadership in technology and 
relevant policy fields; a requirement that GSA facilitate 
access to federal government-wide acquisition solutions for AI 
services and products, including generative AI and computing 
infrastructure; and a requirement that the White House Deputy 
Chief of Staff for Policy convene an AI and Technology Talent 
Task Force to accelerate and monitor the hiring and training of 
AI talent in the federal government.
---------------------------------------------------------------------------
    \27\Rishi Bommasani et al., Decoding the White House AI Executive 
Order's Achievements, Stanford University Human-Centered Artificial 
Intelligence (Nov. 2, 2023), available at: https://hai.stanford.edu/
news/decoding-white-house-ai-executive-orders-achievements.
---------------------------------------------------------------------------
    In March 2024, OMB issued M-24-10, a memorandum for the 
heads of executive departments and agencies on Advancing 
Governance, Innovation, and Risk Management for Agency Use of 
Artificial Intelligence, which directs agencies to advance AI 
governance and innovation while managing risks from the use of 
AI in the Federal Government.\28\
---------------------------------------------------------------------------
    \28\Office of Management and Budget, M-24-10, Advancing Governance, 
Innovation, and Risk Management for Agency Use of Artificial 
Intelligence, (March 2024).
---------------------------------------------------------------------------
    In September 2024, OMB issued M-24-18, a memorandum for the 
heads of executive departments and agencies on Advancing the 
Responsible Acquisition of Artificial Intelligence in 
Government, which directs agencies to improve their capacity 
for the responsible acquisition of AI.\29\
---------------------------------------------------------------------------
    \29\Office of Management and Budget, M-24-18, Advancing the 
Responsible Acquisition of Artificial Intelligence in Government, 
(September 2024).
---------------------------------------------------------------------------
    While these initiatives have produced positive directives 
for federal agencies, important steps remain to achieve a more 
useful and comprehensive governance framework for federal 
agency AI use. For example, the Center for Democracy and 
Technology stated in a recent review of federal agency AI 
inventories that ``[t]he information provided by each agency is 
inconsistent and unclear, making it difficult for the public to 
understand exactly how the use of AI impacts them.''\30\
---------------------------------------------------------------------------
    \30\Bowman Cooper, Like Looking for a Needle in an AI Stack, Center 
for Democracy and Technology (2023). https://cdt.org/insights/like-
looking-for-a-needle-in-an-ai-stack/.
---------------------------------------------------------------------------
    H.R. 7532 builds on the core themes of these past efforts 
by centrally codifying federal agency governance and 
responsible use policies while consolidating and streamlining 
other existing federal agency AI laws in order to reduce 
duplicative or contradictory directives to federal agencies, 
simplify compliance, and provide a strong foundation for future 
legislative efforts. In doing so, the bill focuses government 
resources on increasing transparency, oversight, and 
responsible use of Federal AI systems while protecting the 
public's privacy and civil liberties.
    Specifically, H.R. 7532 establishes a new ``Subchapter IV--
Artificial Intelligence System Governance'' in title 44, 
chapter 35 which places the Office of Management and Budget in 
charge of issuing government-wide policy guidance in harmony 
with existing federal IT and data policy requirements and 
codifies statutory standards for the development, acquisition, 
use, management, and oversight of AI used by federal agencies.
    H.R. 7532 also requires public notice of AI systems used by 
federal agencies through AI Governance Charters, including 
identifying testing and validation processes, responsible 
agency officials, maintenance plans, descriptions of public 
data assets used or modified, impacted personal information 
records, and downstream impacts on agency programs or 
determinations related to financial assistance or regulatory 
enforcement. The bill establishes a Federal AI System Inventory 
by requiring the General Services Administration to maintain a 
single, public interface that centrally catalogs the Governance 
Charters, and requires agencies to ensure existing appeals 
processes provide an opportunity for alternative review 
independent of AI.
    Further, H.R. 7532 streamlines and consolidates existing 
law regarding the government's use of AI, including 
requirements for agencies to provide protections or safeguards 
for Federal AI systems that are commensurate with risk, and 
repeals repetitive provisions in the AI in Government Act of 
2020 and the 2022 Advancing American AI Act. This bill was 
favorably reported out of the Oversight Committee on March 7th, 
2024.

                      Section-by-Section Analysis


Section 1. Short title

Section 2. Establishment of Federal agency artificial intelligence 
        system governance requirements

    Subsection (a) adds a new Subchapter IV in Chapter 35, 
Title 44 of the U.S. Code to establish federal agency AI system 
governance requirements, including the following new sections:
           ``Sec. 3591. Purposes. Codifies nine 
        directives for agency heads to adhere to when 
        designing, developing, acquiring, using, managing, or 
        conducting oversight over AI in the Federal Government.
           ``Sec. 3592. Definitions. Applies existing 
        definitions under 44 U.S.C. 3502 and defines additional 
        terms including: ``artificial intelligence,'' 
        ``artificial intelligence system,'' ``federal 
        artificial intelligence system,'' ``federal information 
        system,'' and ``national security system.''
           ``Sec. 3593. Authority and functions of the 
        Director. Places the Director of the Office of 
        Management and Budget (OMB) in charge of overseeing 
        government-wide use of federal AI systems, including 
        implementation of the purposes outlined in section 
        3591, as well as:
                   Developing, coordinating, and 
                overseeing the implementation of policies, 
                principles, standards, and guidelines to ensure 
                appropriate use of federal AI systems for the 
                protection of civil rights and civil liberties, 
                and conformity with existing Privacy Act (5 
                U.S.C. 552a) and federal information system 
                protections.
                          D Note: Recodifies existing 
                        provisions of section 7224(d)(1)(B) of 
                        the Advancing American AI Act (P.L. 
                        117-263, Division G, Title LXXII, 
                        Subtitle B; 40 U.S.C. 11301 note).
                   Requiring agencies to identify 
                and provide protections and safeguards for the 
                use of federal AI systems commensurate with the 
                risk in a consistent manner with the standards 
                promulgated under the National Institute of 
                Standards and Technology Act (15 U.S.C. 278h-
                1).
                   Recommending approaches to 
                removing barriers to agency use of AI 
                technologies while protecting privacy, civil 
                liberties, civil rights, and economic and 
                national security, as well as, identifying, 
                assessing, and mitigating any discriminatory 
                impact or bias.
                          D Note: Recodifies existing 
                        provisions of section 104(a)(1)-(3) of 
                        the AI in Government Act (P.L. 116-260, 
                        Division U, Title I; 40 U.S.C. 11301 
                        note) and section 7224(d)(1) of the 
                        Advancing American AI Act (P.L. 117-
                        263, Division G, Title LXXII, Subtitle 
                        B; 40 U.S.C. 11301 note).
                   Providing agencies with guidance 
                to establish a plain language notification and 
                appeals process that conforms with existing 
                statutory requirements regarding the protection 
                of agency records for individuals or entities 
                impacted by an agency determination based on a 
                federal AI system output.
                   Providing guidance and a 
                template for the agency AI plans described in 
                section 3594 and issuing guidance to help 
                agencies establish the AI governance charters, 
                including defining high-risk Federal artificial 
                intelligence systems, described in section 
                3595.
           ``Sec. 3594. Federal agency 
        responsibilities. Requires the head of each agency to 
        ensure that federal AI system management processes are 
        integrated with agency planning and that senior agency 
        officials implement necessary policies and procedures, 
        with the agency Chief Information Officer (CIO), in 
        coordination with other appropriate senior agency AI 
        officials, being the responsible agency official for 
        compliance with this subchapter.
                   Requires a public plan providing 
                information about the agency's federal AI 
                system governance policies and procedures, 
                including the inventory of AI use cases as 
                required by section 7225(a) of the Advancing 
                American AI Act (P.L. 117-263; 40 U.S.C. 11301 
                note).
                   Requires the modification of an 
                agency's appeals process for individuals or 
                entities impacted by federal agency 
                determinations that were substantively and 
                meaningfully augmented by a federal AI system.
                   Requires, in accordance with OMB 
                guidance and section 3595, the implementation 
                of regularly updated AI governance charters 
                that are submitted to the Federal Register and 
                the General Services Administration (GSA) for 
                publication under section 3596.
                   Requires regular training 
                programs for relevant agency employees on 
                federal AI system management requirements, 
                which may be integrated into training 
                requirements established by the A.I. Training 
                for the Acquisition Workforce Act (P.L. 117-
                207).
           ``Sec. 3595. Agency AI Governance Charters. 
        Requires agency heads to ensure that an accurate and 
        complete AI governance charter is established for each 
        federal AI system in use by an agency that has been 
        designated as high-risk (as defined by OMB guidance) or 
        interacts with a record maintained on an individual (as 
        defined under the Privacy Act; 5 U.S.C. 552a)--with a 
        required annual review and requirement that a new 
        charter be issued within 30 days of any major system 
        changes--and specifies the required AI governance 
        charter contents, including:
                   The bureau, department, or 
                office using or operating the federal AI 
                system, and the contact information for the 
                designated agency official responsible for 
                maintenance of the system.
                   Information about how the 
                federal AI system was developed and funded, 
                including the training, validation, and testing 
                of the system.
                   Information about ongoing 
                oversight and maintenance of the system, 
                including the cadence of system testing, 
                validation, monitoring, and auditing, and 
                performance metrics considered by the agency.
                   Information about how the system 
                is used, the data or data assets produced by 
                the system, and whether the system was trained 
                on, uses, or produces a federal record 
                maintained on an individual.
                   Subsection (d) requires the AI 
                governance charter of each agency to be made 
                public on the agency webpage and noticed in the 
                Federal Register but allows an agency head to 
                waive the publication requirement with approval 
                by the OMB Director and notification to 
                Congress and the agency Inspector General, or 
                to protect properly classified national 
                security information.
                   Subsection (e) exempts federal 
                AI systems used solely for research and 
                development or systems used in national 
                security systems from the requirements of this 
                section.
           Sec. 3596. AI Governance Charter Inventory. 
        This section requires the GSA Administrator to maintain 
        a single, public, online interface for centrally 
        cataloging agency AI governance charters in a machine-
        readable and open format for bulk download, which shall 
        be known as the ``Federal AI System Inventory.''
           ``Sec. 3597. Independent evaluation. 
        Requires IGs to evaluate the federal AI governance 
        policies and practices of the agency every two years 
        and submit to the agency head, the OMB Director, and 
        Congress, a report which may include a classified annex 
        and directs the Comptroller General to periodically 
        evaluate and submit to Congress a report on the 
        effectiveness of agency federal AI system governance 
        policies and practices.
    Subsection (b) requires the OMB Director--in consultation 
with NIST, GSA, and the Office of Science and Technology Policy 
(OSTP)--to issue a memo to agencies one year after enactment 
(to be updated as necessary every two years and then 
periodically after 10 years) establishing guidelines for 
implementing the requirements of this Act's newly established 
Subchapter IV.
    Subsection (c) updates the Privacy Act (5 U.S.C. 552a) to 
include listing of any related AI governance charters in an 
agency system of records notice and to ensure the security, 
confidentiality, and integrity of federal AI system records.
    Subsection (d) repeals provisions of the AI in Government 
Act and the Advancing American AI Act which have been 
recodified into the new Subchapter IV established by subsection 
(a) of this Act.
    Subsection (e) requires that within six months after the 
issuance of OMB guidance under subsection (b) the Federal 
Acquisition Regulation (FAR) will be updated to reflect the 
amendments made in this section and require contractors and 
subcontractors that work on federal AI systems to provide 
agencies with the information necessary for compliance with 
this Act.
    Subsection (f) restricts the ability of agencies to take 
actions not authorized by this Act, specifies protections of 
individuals' constitutional and privacy rights, and clarifies 
that nothing in the Act should be construed as requiring the 
public disclosure of information that could otherwise be 
withheld under the Freedom of Information Act (5 U.S.C. 
522(b)).
    Subsection (g) clarifies that the definition of ``agency'' 
and ``Director''.

                          Legislative History

    H.R. 7532, the Federal AI Governance and Transparency Act, 
was introduced on March 5, 2024, by Representative James Comer. 
The following Representatives are cosponsors of the bill: Jamie 
Raskin (D-MD), Nancy Mace (R-SC), Alexandria Ocasio-Cortez (D-
NY), Clay Higgins (R-LA), Gerald E. Connolly (D-VA), Nicholas 
A. Langworthy (R-NY), and Ro Khanna (D-CA). The bill was 
referred to the Committee on Oversight and Accountability. The 
Committee on Oversight and Accountability held a hearing 
related to and used for development and consideration of the 
bill on September 14, 2023. The Committee considered H.R. 7532 
at a business meeting on March 7, 2024, and ordered the bill as 
amended favorably reported by a recorded vote.

                        Committee Consideration

    On March 7, 2024, the Committee met in open session and 
ordered the bill, H.R. 7532, favorably reported with an 
amendment in the nature of a substitute, by a roll call vote of 
36-3, a quorum being present.

                            Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following roll call vote 
occurred during the Committee's consideration of H.R. 7532:
    The first and only roll call vote was on final passage of 
H.R. 7532. The bill was agreed to in a recorded vote of 36-3.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                       Explanation of Amendments

    During Committee consideration of the bill, Representative 
James Comer (R-KY), Chairman of the Committee, offered an 
amendment in the nature of a substitute that would make certain 
technical changes to the bill. The amendment in the nature of a 
substitute passed by voice vote.

                   List of Related Committee Hearings

    In accordance with clause 3(c)(6) of rule XIII of the Rules 
of the House of Representatives, (1) The following hearing was 
used to develop or consider H.R. 7532:
    On September 14, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``How are Federal Agencies Harnessing Artificial 
Intelligence?'' with Dr. Arati Prabhakar, Director, White House 
Office of Science and Technology Policy; Dr. Craig Martell, 
Chief Digital and AI Officer, Department of Defense; and Mr. 
Eric Hysen, Chief Information Officer, Department of Homeland 
Security.
    (2) The following related hearings were held:
    On March 8, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``Advances in AI: Are We Ready for a Tech 
Revolution?'' with Dr. Eric Schmidt, Chair, Special Competitive 
Studies Project; Dr. Aleksander Madry, Director, MIT Center for 
Deployable Machine Learning, and Cadence Design Systems 
Professor of Computing, Massachusetts Institute of Technology; 
Dr. Scott Crowder, Vice President, IBM Quantum, and CTO, IBM 
Systems, Technical Strategy and Transformation IBM; and Ms. 
Merve Hickok, Senior Research Director, Center for AI and 
Digital Policy.
    On June 22, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``Using Cutting-Edge Technologies to Keep 
America Safe'' with Mr. Ryan Rawding, Vice President of 
Business Development, Pangiam; Mr. Wahid Nawabi, Chairman, 
President, and Chief Executive Officer, AeroVironment; Mr. 
Gavin Kenneally, Chief Executive Officer, Ghost Robotics; and 
Dr. Benjamin Boudreaux, Policy Researcher and Professor of 
Policy Analysis, Pardee RAND Graduate School, RAND Corporation.
    On December 6, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``White House Policy on AI'' with Mr. Ross 
Nodurft, Executive Director, Alliance for Digital Innovation; 
Mr. Samuel Hammond, Senior Economist, Foundation for American 
Innovation; Ms. Kate Goodloe, Managing Director BSA | The 
Software Alliance; Dr. Daniel Ho, William Benjamin Scott and 
Luna M. Scott Professor of Law, Senior Fellow, Stanford 
Institute for Human-Centered AI, Stanford Law School; and Dr. 
Rumman Chowdhury, Responsible AI Fellow, Berkman Klein Center 
for Internet & Society, Harvard University.
    On January 17, 2024, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``Toward an AI Ready Workforce'' with Dr. 
William Scherlis, Professor of Computer Science, Carnegie 
Mellon University; Ms. Timi Hadra, Client Partner and Senior 
Executive for West Virginia, IBM; Dr. Richard Levin, Former 
President, Yale University and Senior Advisor, Coursera; and 
Dr. Costis Toregas, Director, Cyber Security and Privacy 
Research Institute, The George Washington University.
    On March 21, 2024, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation held a 
hearing titled ``White House Overreach on AI'' with Ms. 
Jennifer Huddleston, Technology Policy Research Fellow, Cato 
Institute; Mr. Adam Thierer, Resident Senior Fellow, Technology 
& Innovation, R Street Institute; Mr. Neil Chilson, Head of AI 
Policy The Abundance Institute; and Dr. Nicol Turner Lee, 
Senior Fellow, Governance Studies and Director, Center for 
Technology Innovation, Brookings Institution.

      Statement of Oversight Findings and Recommendations of
                          the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the Background and Need for 
Legislation section above.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals or objectives of this bill are to amend chapter 35 of 
title 44, United States Code, to establish Federal AI system 
governance requirements, and for other purposes.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill does not relate to employment or access to public 
services and accommodations in the legislative branch.

                    Duplication of Federal Programs

    In accordance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, no provision of this bill 
establishes or reauthorizes a program of the Federal Government 
known to be duplicative of another Federal program, a program 
that was included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                Federal Advisory Committee Act Statement

    The Committee finds that this legislation does not direct 
the establishment of advisory committees within the definition 
of Section 5(b) of the appendix to title 5, U.S.C.

                 Unfunded Mandates Reform Act Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974 the Committee has included a letter received from the 
Congressional Budget Office below.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee includes below a cost 
estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.

      New Budget Authority and Congressional Budget Office
                          Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 7532 would require federal agencies to develop and 
publish charters governing the operations, maintenance, and 
transparency of their artificial intelligence (AI) programs. 
The bill would codify the responsibilities of the Office of 
Management and Budget (OMB) in producing government-wide 
policies for the safe and secure adoption of AI technology. The 
bill also would require agency inspectors general and the 
Government Accountability Office to report to the Congress 
every two years after enactment on the effectiveness of those 
efforts.
    The Administration has issued executive orders and 
memoranda concerning the creation of federal AI programs. CBO 
expects those actions will satisfy most of the requirements of 
the bill. Using information on the costs of similar plans and 
reports, CBO estimates that satisfying the governance charter 
and reporting requirements would cost $6 million over the 2024-
2029 period. Such spending would be subject to the availability 
of appropriated funds.
    Enacting H.R. 7532 could affect direct spending by some 
agencies that are allowed to use fees, receipts from the sale 
of goods, and other collections to cover operating costs. CBO 
estimates that any net changes in direct spending by those 
agencies would be negligible because most of them can adjust 
amounts collected to reflect changes in operating costs.
    The costs of the legislation, detailed in Table 1, fall 
within budget function 800 (general government).

               TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 7532
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, millions of dollars--
                                                ----------------------------------------------------------------
                                                   2024     2025     2026     2027     2028     2029   2024-2029
----------------------------------------------------------------------------------------------------------------
Estimated Authorization........................        *        4        *        1        *        1         6
Estimated Outlays..............................        *        4        *        1        *        1         6
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    The CBO staff contact for this estimate is Aldo Prosperi. 
The estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 44, UNITED STATES CODE

                            PART A--GENERAL

           *       *       *       *       *       *       *

                  CHAPTER 35--COORDINATION OF FEDERAL
                          INFORMATION POLICY

                SUBCHAPTER I--FEDERAL INFORMATION POLICY

Sec.
     * * * * * * *

        Subchapter IV--Artificial Intelligence System Governance

3591. Purposes.
3592. Definitions.
3593. Authority and functions of the Director.
3594. Federal agency responsibilities.
3595. Agency AI Governance Charters.
3596. AI Governance Charter Inventory.
3597. Independent evaluation.

           *       *       *       *       *       *       *

             SUBCHAPTER IV--ARTIFICIAL INTELLIGENCE SYSTEM
                              GOVERNANCE

Sec. 3591. Purposes

  The purposes of this subchapter, with respect to the design, 
development, acquisition, use, management, and oversight of 
artificial intelligence in the Federal Government, are to 
ensure the following:
          (1) Actions that are consistent with the Constitution 
        and any other applicable law and policy, including 
        those addressing freedom of speech, privacy, civil 
        rights, civil liberties, and an open and transparent 
        Government.
          (2) Any such action is purposeful and performance-
        driven, including ensuring the following:
                  (A) Such action promotes the consistent and 
                systemic treatment of all individuals in a 
                fair, just, and impartial manner.
                  (B) The public benefits of such action 
                significantly outweigh the risks.
                  (C) The risks and operations of such action 
                do not unfairly and disproportionately benefit 
                or harm an individual or subgroup of the 
                public.
                  (D) The risk of such action is assessed and 
                responsibly managed, including before the use 
                of artificial intelligence.
          (3) Any application of artificial intelligence is 
        consistent with the use cases for which the artificial 
        intelligence was trained, and the deployers of such 
        application promote verifiably accurate, ethical, 
        reliable, and effective use.
          (4) The safety, security, and resiliency of 
        artificial intelligence applications, including 
        resilience when confronted with any systematic 
        vulnerability, adversarial manipulation, and other 
        malicious exploitation.
          (5) The purpose, operations, risks, and outcomes of 
        artificial intelligence applications are sufficiently 
        explainable and understandable, to the extent 
        practicable, by subject matter experts, users, impacted 
        parties, and others, as appropriate.
          (6) Such action is responsible and accountable, 
        including by ensuring the following:
                  (A) Human roles and responsibilities are 
                clearly defined, understood, and appropriately 
                assigned.
                  (B) Artificial intelligence is used in a 
                manner consistent with the purposes described 
                in this section and the purposes for which each 
                use of artificial intelligence is intended.
                  (C) Such action, as well as relevant inputs 
                and outputs of artificial intelligence 
                applications, are well documented and 
                accountable.
          (7) Responsible management and oversight by ensuring 
        the following:
                  (A) Artificial intelligence applications are 
                regularly tested against the purposes described 
                in this section.
                  (B) Mechanisms are maintained to supersede, 
                disengage, or deactivate applications of 
                artificial intelligence that demonstrate 
                performance or outcomes that are inconsistent 
                with the intended use or this subchapter.
                  (C) Engagement with impacted communities.
          (8) Transparency in publicly disclosing relevant 
        information regarding the use of artificial 
        intelligence to appropriate stakeholders, to the extent 
        practicable and in accordance with any applicable law 
        and policy, including with respect to the protection of 
        privacy, civil liberties, and of sensitive law 
        enforcement, national security, trade secrets or 
        proprietary information, and other protected 
        information.
          (9) Accountability for the following:
                  (A) Implementing and enforcing appropriate 
                safeguards necessary to comply with the 
                purposes described in this section and the 
                requirements of this subchapter, for the proper 
                use and functioning of the applications of 
                artificial intelligence.
                  (B) Monitoring, auditing, and documenting 
                compliance with those safeguards, as 
                appropriate.
                  (C) Providing appropriate training to all 
                agency personnel responsible for the design, 
                development, acquisition, use, management, and 
                oversight of artificial intelligence.

Sec. 3592. Definitions

  In this subchapter:
          (1) In general.--Except as provided in paragraph (2), 
        the definitions under sections 3502 shall apply to this 
        subchapter.
          (2) Additional definitions.--In this subchapter:
                  (A) Administrator.--The term 
                ``Administrator'' means the Administrator of 
                General Services.
                  (B) Appropriate congressional committees.--
                The term ``appropriate congressional 
                committees'' means the Committee on Oversight 
                and Accountability of the House of 
                Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the 
                Senate.
                  (C) Artificial intelligence.--The term 
                ``artificial intelligence'' has the meaning 
                given the term in section 238(g) of the John S. 
                McCain National Defense Authorization Act for 
                Fiscal Year 2019 (Public Law 115-232; 10 U.S.C. 
                note prec. 4061).
                  (D) Artificial intelligence system.--The term 
                ``artificial intelligence system'' means any 
                data system, software, application, tool, or 
                utility that operates in whole or in part using 
                dynamic or static machine learning algorithms 
                or other forms of artificial intelligence, 
                whether--
                          (i) the data system, software, 
                        application, tool, or utility is 
                        established primarily for the purpose 
                        of researching, developing, or 
                        implementing artificial intelligence 
                        technology; or
                          (ii) artificial intelligence 
                        capability is integrated into another 
                        system or business process, operational 
                        activity, or technology system.
                  (E) Federal artificial intelligence system.--
                The term ``Federal artificial intelligence 
                system'' means an artificial intelligence 
                system used in connection with a Federal 
                information system.
                  (F) Federal information system.--The term 
                ``Federal information system'' has the meaning 
                given the term in section 11331(g) of title 40.
                  (G) National security system.--The term 
                ``national security system'' has the meaning 
                given that term in section 3552(b) of title 44.

Sec. 3593. Authority and functions of the Director

  The Director shall oversee the design, development, 
acquisition, use, management, and oversight of Federal 
artificial intelligence systems by agencies to implement the 
purposes described in section 3591. In performing such 
oversight, the Director shall do the following:
          (1) Develop, coordinate, and oversee the 
        implementation of policies, purposes, standards, and 
        guidelines to ensure appropriate use of Federal 
        artificial intelligence systems and the protection of 
        civil rights, civil liberties, and privacy, including 
        in conformity with section 552a of title 5 and other 
        applicable laws, as well as the integrity of Federal 
        information systems and information technology in 
        accordance with the other requirements of this chapter.
          (2) Oversee agency compliance with the requirements 
        of this subchapter, including through any authorized 
        enforcement action under section 11303(b)(5) of title 
        40 to ensure agency accountability and compliance.
          (3) Issue and update, as necessary, guidance to 
        agencies to take steps to advance the governance of 
        Federal artificial intelligence systems, manage risk, 
        and remove relevant barriers to innovation, consistent 
        with the requirements of this subchapter and, as 
        appropriate the standards promulgated under section 22A 
        of the National Institute of Standards and Technology 
        Act (15 U.S.C. 278h-1) pursuant to section 5302 of the 
        William M. (Mac) Thornberry National Defense 
        Authorization Act for Fiscal Year 2021 (15 U.S.C. 9441) 
        that addresses the following:
                  (A) The development of policies regarding 
                Federal acquisition, procurement, and use by 
                agencies regarding artificial intelligence, 
                including an identification of the 
                responsibilities of agency officials managing 
                the use of such technology.
                  (B) The ownership and protection of data and 
                other information created, used, processed, 
                stored, maintained, disseminated, disclosed, or 
                disposed of by a contractor or subcontractor 
                (at any tier) on behalf of the Federal 
                Government.
                  (C) The protection of training data, 
                algorithms, and other components of any Federal 
                artificial intelligence system against misuse, 
                unauthorized alteration, degradation, or being 
                rendered inoperable.
                  (D) The removal of barriers to responsible 
                agency use of artificial intelligence, such as 
                information technology, data, workforce, and 
                budgetary barriers, in order to promote the 
                innovative application of those technologies 
                while protecting privacy, civil liberties, 
                civil rights, and economic and national 
                security.
                  (E) The establishment of best practices for 
                identifying, assessing, and mitigating any 
                discrimination in violation of title VI of the 
                Civil Rights Act of 1964 (42. U.S.C. 2000d et 
                seq.), or any unintended consequence of the use 
                of artificial intelligence, including policies 
                to--
                          (i) identify data used to train 
                        artificial intelligence;
                          (ii) identify data analyzed or 
                        ingested by Federal artificial 
                        intelligence systems used by the 
                        agencies; and
                          (iii) require periodic evaluation of 
                        Federal artificial intelligence 
                        systems, as appropriate.
          (4) Issue guidance for agencies to establish a plain 
        language notification process, as necessary and 
        appropriate and in conformity with applicable law, 
        including section 552a of title 5, for individuals or 
        entities impacted by an agency determination that has 
        been based solely on an output from, or substantively 
        and meaningfully informed, augmented, or assisted by a 
        Federal artificial intelligence system, including the 
        contents of any notice, including examples of what the 
        notice may look like in practice.
          (5) Issue guidance for agencies to review their 
        appeals process and to make modifications, as necessary 
        and appropriate, to account for determinations made 
        solely by or substantively and meaningfully informed, 
        augmented, or assisted by a Federal artificial 
        intelligence system, including guidance on how an 
        agency provides the impacted individual or entity the 
        opportunity for an alternative review independent of 
        the Federal artificial intelligence system, as 
        appropriate.
          (6) Provide guidance and a template for the required 
        contents of the agency plans described in section 
        3594(6) that uses a uniform resource locator that is in 
        a consistent format across agencies such as the format 
        ``agencyname.gov/AI''.
          (7) Issue guidance, including a uniform required 
        submission format and criteria for updating entries 
        after significant changes, for the establishment of 
        agency AI governance charters under section 3595, 
        including defining high-risk Federal artificial 
        intelligence systems, and publication under section 
        3596.

Sec. 3594. Federal agency responsibilities

  The head of each agency shall do the following:
          (1) Comply with the requirements of this subchapter 
        and related policies, purposes, standards, and 
        guidelines, including those under section 552a of title 
        5 and in guidance issued by the Director under section 
        3593.
          (2) Ensure that Federal artificial intelligence 
        system management processes are integrated with agency 
        strategic, operational, data, workforce planning, and 
        budgetary planning processes, and other requirements 
        under this chapter.
          (3) Ensure that senior agency officials, including 
        the Chief Information Officer, the Chief Data Officer, 
        and the senior agency official for privacy, implement 
        policies and procedures regarding Federal artificial 
        intelligence systems under the control of such 
        officers, assess and reduce any risks to such systems 
        to an acceptable level, and periodically assess and 
        validate management procedures and controls to ensure 
        effective implementation of this subchapter.
          (4) Delegate to the agency Chief Information Officer 
        established under section 3506 (or comparable official 
        in an agency not covered by such section) the primary 
        authority and accountability to ensure compliance with 
        the agency requirements under this subchapter in 
        coordination with any other appropriate senior agency 
        official designated by the head of the agency.
          (5) Ensure that contracts for the acquisition and 
        procurement of a Federal artificial intelligence system 
        are consistent with the requirements of this subchapter 
        and any guidance issued by the Director under section 
        3593(3).
          (6) Maintain a plan, posted on a publicly available 
        and centralized webpage of the agency and prepared in 
        accordance with the template provided by the Director 
        under section 3593(6), to--
                  (A) achieve consistency with the requirements 
                of this subchapter and guidance issued by the 
                Director; and
                  (B) provide the public information about 
                agency policies and procedures for governing 
                Federal artificial intelligence systems, 
                including the inventory of artificial 
                intelligence use cases required by section 
                7225(a) of the Advancing American AI Act 
                (subtitle B of title LXXII of Public Law 117-
                263; 40 U.S.C. 11301 note).
          (7) Establish procedures for notifying an individual 
        or entity impacted by an agency determination made 
        solely by an output from, or substantively and 
        meaningfully informed, augmented, or assisted by a 
        Federal artificial intelligence system in accordance 
        with guidance issued by the Director under section 
        3593(4).
          (8) Modify the agency appeals process, as necessary 
        and appropriate, to account for determinations made 
        solely by or substantively and meaningfully informed, 
        augmented, or assisted by a Federal artificial 
        intelligence system, and to provide the impacted 
        individual or entity the opportunity for an alternative 
        review independent of the Federal artificial 
        intelligence system, as appropriate, as established by 
        the Director under section 3593(5).
          (9) In accordance with guidance issued by the 
        Director under section 3593(7), oversee the 
        establishment of AI governance charters for Federal 
        artificial intelligence systems, including by--
                  (A) establishing a process, led by each 
                official identified in section 3594(4) to 
                ensure that each Federal artificial 
                intelligence system has an established AI 
                governance charter that is regularly updated in 
                accordance with the requirements under section 
                3595 and made publicly available on the webpage 
                under paragraph (6);
                  (B) submitting each AI governance charter to 
                the Federal Register not later than 30-days 
                after the initial establishment or termination 
                of the charter, in conformity with guidance 
                from the Director; and
                  (C) submitting each AI governance charter to 
                the Administrator for publication in a format 
                established in the Directors guidance in 
                accordance with section 3596.
          (10) In consultation with the Director, the Director 
        of the Office of Personnel Management, and the 
        Administrator of General Services, conduct regular 
        training programs to educate relevant agency program 
        and management officials, including employees 
        supporting the functions of the Chief Information 
        Officer, the Chief Data Officer, the Evaluation 
        Officer, the senior privacy official, and the 
        statistical official, as appropriate, about the 
        management of Federal artificial intelligence systems 
        and compliance with the requirements of this 
        subchapter, which may be integrated with the training 
        requirements and covered topics established by the 
        Artificial Intelligence Training for the Acquisition 
        Workforce Act (Public Law 117-207; 41 U.S.C. 1703 
        note).

Sec. 3595. Agency AI Governance Charters

  (a) In General.--In accordance with the guidance established 
under section 3593(7), the head of each agency shall ensure 
that an accurate and complete AI governance charter is 
established for each Federal artificial intelligence system in 
use by the agency that is designated as a high-risk Federal 
artificial intelligence system or was trained on, uses, or 
produces a record maintained on an individual (as defined under 
section 552a(a) of title 5).
  (b) Contents of Charters.--An AI governance charter for a 
Federal artificial intelligence system shall, at a minimum, 
include the following:
          (1) The name and an identifying summary of the 
        Federal artificial intelligence system, including the 
        following:
                  (A) A descriptive summary of each purpose and 
                relevant use case of the system, as may be 
                documented on the inventory established under 
                section 7225 of the Advancing American AI Act 
                (subtitle B of title LXXII of Public Law 117-
                263; 40 U.S.C. 11301 note).
                  (B) The bureau, department, or office using 
                or operating the system, and to the extent 
                practicable, each program designated on the 
                website required under section 1122(a)(2) of 
                title 31 associated with use of the system.
                  (C) The name and direct contact information 
                for a designated agency official responsible 
                for the overall outputs of the system.
                  (D) The name and direct contact information 
                for a designated agency official responsible 
                for the ongoing maintenance of the system which 
                may be the same official designated under 
                subparagraph (C).
          (2) Information about how the Federal artificial 
        intelligence system was developed and funded, including 
        the following:
                  (A) Other individuals or entities that have 
                developed, maintained, managed, and operated 
                the system.
                  (B) Information about any relevant Federal 
                award including any associated contract, grant, 
                cooperative agreement, or other transaction 
                agreement.
          (3) Information about the training, validation, and 
        testing of the Federal artificial intelligence system, 
        including the following:
                  (A) A description of the type of data or data 
                assets used in the training, validation, and 
                testing of the Federal artificial intelligence 
                system or, if such information is not 
                available, a statement describing why such 
                information is not available.
                  (B) A designation of whether any of the data 
                or data assets used in training, validating, or 
                testing the Federal artificial intelligence 
                system are classified as an open Government 
                data asset or a public data asset or a 
                designated system of record described under 
                paragraph (7).
                  (C) Information on how to access any open 
                Government data asset or public data asset 
                identified under subparagraph (B).
                  (D) A listing of audits, testing, or other 
                risk assessments of the Federal artificial 
                intelligence system, including contact 
                information of the individual or entity that 
                conducted such assessments.
          (4) Information about ongoing oversight and 
        maintenance of the Federal artificial intelligence 
        system, including a description of the ongoing testing, 
        monitoring, or auditing of the Federal artificial 
        intelligence system, including information about the 
        cadence of testing, as appropriate, and the entity 
        responsible for such testing.
          (5) Information about how the system is used by the 
        agency, including--
                  (A) the date the agency began using the 
                system and the intended life span of use, if 
                appropriate; and
                  (B) whether any agency determinations have 
                been or are intended to be based solely on an 
                output from, or informed, augmented, or 
                assisted by the Federal artificial intelligence 
                system, and--
                          (i) a summary of how the Federal 
                        artificial intelligence system or the 
                        data or data assets produced by the 
                        Federal artificial intelligence system 
                        is used to inform, augment, or assist 
                        in making these determinations;
                          (ii) information about other agencies 
                        or federally funded entities that use 
                        or rely on these determinations; and
                          (iii) a description of any associated 
                        notice or modified appeal process as 
                        required under section 3593(4) and 
                        3593(5).
          (6) Information about data or data assets produced by 
        the Federal artificial intelligence system, including a 
        description of the data or data assets produced, 
        altered, or augmented by the system, including--
                  (A) a designation of whether any of the data 
                or data assets are classified as an open 
                Government data asset or a public data asset or 
                are included in a designated system of record 
                described under paragraph (7);
                  (B) information on how to access any such 
                open Government data asset or public data asset 
                identified under subparagraph (A); and
                  (C) information about any other agency or 
                federally funded entity known to use or 
                otherwise rely upon the data or data assets 
                identified under this paragraph.
          (7) Information on whether the system was trained on, 
        uses, or produces a record maintained on an individual 
        (as defined under section 552a(a) of title 5), 
        including--
                  (A) a listing of any designated system of 
                record including a reference to any associated 
                notice in the Federal Register for the 
                establishment or revision of such system of 
                record, as required under section 552a(d) of 
                title 5; or
                  (B) a description of any system of record 
                that has been exempted under subsection (j) or 
                (k) of section 552a of title 5, including the 
                statement required under section 553(c) of 
                title 5 that documents the reasons why the 
                system of records is exempted.
  (c) Regular Updates Required.--The head of each agency shall 
establish procedures to ensure that each AI governance charter 
for the agency is updated to capture any significant change to 
the Federal artificial intelligence system, consistent with 
guidance established in section 3593(7) and not less than 30 
days after such change has been implemented.
  (d) Requirement for Publication.--An AI governance charter 
required under subsection (a) shall be made public on the 
agency webpage noticed in the Federal Register, and published 
on the Federal AI System Inventory established under section 
3596, in accordance with procedures established by the agency 
under section 3594(9) in conformity with guidance issued by the 
Director under section 3593(7) before a Federal artificial 
intelligence system is used by an agency, except that--
          (1) the head of an agency may, with advance approval 
        of the Director and notification to the appropriate 
        congressional committees, including the relevant 
        authorizing committee in the House of Representatives 
        and the Senate, and the relevant agency Inspector 
        General, waive the publication requirement under this 
        subsection; or
          (2) in order to protect properly classified national 
        security information, a charter may be submitted to the 
        Director, appropriate congressional committees, 
        including the relevant authorizing committee in the 
        House of Representatives and the Senate, and the 
        relevant agency Inspector General in lieu of the 
        publication requirement of this subsection.
  (e) Exemptions.--A Federal artificial intelligence system is 
exempt from the requirements of this section if the system is 
used--
          (1) solely for the purpose of research or 
        development, except that the purposes described and 
        guidance promulgated under this subchapter should 
        inform any such research, development, testing, or 
        evaluation directed at future applications of Federal 
        artificial intelligence systems; or
          (2) in a national security system, in whole or in 
        part, if the agency maintains a complete and regularly 
        updated nonpublic version of each AI governance charter 
        in accordance with subsections (a) and (b) and the 
        guidance required by section 3593(7).

Sec. 3596. AI Governance Charter Inventory

  The Administrator of General Services shall maintain a 
single, public online interface for centrally cataloging agency 
AI governance charters which shall be known as the ``Federal AI 
System Inventory''. The Administrator and the Director shall--
          (1) ensure that each agency, as appropriate, submits 
        AI governance charters for publication on the 
        interface, in a publicly accessible machine-readable 
        and open format to facilitate searchability and bulk 
        download of the inventory; and
          (2) provide a clear process and mechanism for each 
        agency to make timely revisions and updates.

Sec. 3597. Independent evaluation

  (a) In General.--Not later than 2 years after the date of the 
enactment of this subchapter, and every 2 years thereafter, the 
Inspector General appointed under chapter 4 of title 5 for each 
agency shall perform an independent evaluation of the Federal 
artificial intelligence governance policies and practices of 
the agency and submit to the head of the agency, the Director, 
and the appropriate congressional committees, a report which 
may include a classified annex. The report shall include at a 
minimum--
          (1) an assessment of the comprehensive compliance of 
        the agency with the requirement under section 3595 for 
        each Federal artificial intelligence system in use or 
        maintained by an agency to have an established, and 
        appropriately noticed, AI governance charter, including 
        timely revisions to reflect significant changes and 
        appropriate use of the exemptions described under 
        section 3595(e); and
          (2) an assessment of compliance by the agency with 
        artificial intelligence governance policies and 
        practices with the requirements of this subchapter.
  (b) Comptroller General.--The Comptroller General shall 
periodically evaluate and submit to Congress a report on the--
          (1) effectiveness of agency Federal artificial 
        intelligence system governance policies and practices;
          (2) implementation of the requirements of this 
        subchapter by the Director, Administrator, and 
        agencies; and
          (3) extent to which the requirements of this 
        subchapter and related implementing guidance and 
        policies reflect technology advancements and provide 
        any legislative recommendations as appropriate.

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                              ----------                              

                      TITLE 5, UNITED STATES CODE

                    PART I--THE AGENCIES GENERALLY

           *       *       *       *       *       *       *

                  CHAPTER 5--ADMINISTRATIVE PROCEDURE

           *       *       *       *       *       *       *

                SUBCHAPTER II--ADMINISTRATIVE PROCEDURE

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Sec. 552a. Records maintained on individuals

  (a) Definitions.--For purposes of this section--
          (1) the term ``agency'' means agency as defined in 
        section 552(e) of this title;
          (2) the term ``individual'' means a citizen of the 
        United States or an alien lawfully admitted for 
        permanent residence;
          (3) the term ``maintain'' includes maintain, collect, 
        use, or disseminate;
          (4) the term ``record'' means any item, collection, 
        or grouping of information about an individual that is 
        maintained by an agency, including, but not limited to, 
        his education, financial transactions, medical history, 
        and criminal or employment history and that contains 
        his name, or the identifying number, symbol, or other 
        identifying particular assigned to the individual, such 
        as a finger or voice print or a photograph;
          (5) the term ``system of records'' means a group of 
        any records under the control of any agency from which 
        information is retrieved by the name of the individual 
        or by some identifying number, symbol, or other 
        identifying particular assigned to the individual;
          (6) the term ``statistical record'' means a record in 
        a system of records maintained for statistical research 
        or reporting purposes only and not used in whole or in 
        part in making any determination about an identifiable 
        individual, except as provided by section 8 of title 
        13;
          (7) the term ``routine use'' means, with respect to 
        the disclosure of a record, the use of such record for 
        a purpose which is compatible with the purpose for 
        which it was collected;
          (8) the term ``matching program''--
                  (A) means any computerized comparison of--
                          (i) two or more automated systems of 
                        records or a system of records with 
                        non-Federal records for the purpose 
                        of--
                                  (I) establishing or verifying 
                                the eligibility of, or 
                                continuing compliance with 
                                statutory and regulatory 
                                requirements by, applicants 
                                for, recipients or 
                                beneficiaries of, participants 
                                in, or providers of services 
                                with respect to, cash or in-
                                kind assistance or payments 
                                under Federal benefit programs, 
                                or
                                  (II) recouping payments or 
                                delinquent debts under such 
                                Federal benefit programs, or
                          (ii) two or more automated Federal 
                        personnel or payroll systems of records 
                        or a system of Federal personnel or 
                        payroll records with non-Federal 
                        records,
                  (B) but does not include--
                          (i) matches performed to produce 
                        aggregate statistical data without any 
                        personal identifiers;
                          (ii) matches performed to support any 
                        research or statistical project, the 
                        specific data of which may not be used 
                        to make decisions concerning the 
                        rights, benefits, or privileges of 
                        specific individuals;
                          (iii) matches performed, by an agency 
                        (or component thereof) which performs 
                        as its principal function any activity 
                        pertaining to the enforcement of 
                        criminal laws, subsequent to the 
                        initiation of a specific criminal or 
                        civil law enforcement investigation of 
                        a named person or persons for the 
                        purpose of gathering evidence against 
                        such person or persons;
                          (iv) matches of tax information (I) 
                        pursuant to section 6103(d) of the 
                        Internal Revenue Code of 1986, (II) for 
                        purposes of tax administration as 
                        defined in section 6103(b)(4) of such 
                        Code, (III) for the purpose of 
                        intercepting a tax refund due an 
                        individual under authority granted by 
                        section 404(e), 464, or 1137 of the 
                        Social Security Act; or (IV) for the 
                        purpose of intercepting a tax refund 
                        due an individual under any other tax 
                        refund intercept program authorized by 
                        statute which has been determined by 
                        the Director of the Office of 
                        Management and Budget to contain 
                        verification, notice, and hearing 
                        requirements that are substantially 
                        similar to the procedures in section 
                        1137 of the Social Security Act;
                          (v) matches--
                                  (I) using records 
                                predominantly relating to 
                                Federal personnel, that are 
                                performed for routine 
                                administrative purposes 
                                (subject to guidance provided 
                                by the Director of the Office 
                                of Management and Budget 
                                pursuant to subsection (v)); or
                                  (II) conducted by an agency 
                                using only records from systems 
                                of records maintained by that 
                                agency;
                 if the purpose of the match is not to take any 
                adverse financial, personnel, disciplinary, or 
                other adverse action against Federal personnel;
                          (vi) matches performed for foreign 
                        counterintelligence purposes or to 
                        produce background checks for security 
                        clearances of Federal personnel or 
                        Federal contractor personnel;
                          (vii) matches performed incident to a 
                        levy described in section 6103(k)(8) of 
                        the Internal Revenue Code of 1986;
                          (viii) matches performed pursuant to 
                        section 202(x)(3) or 1611(e)(1) of the 
                        Social Security Act (42 U.S.C. 
                        402(x)(3), 1382(e)(1));
                          (ix) matches performed by the 
                        Secretary of Health and Human Services 
                        or the Inspector General of the 
                        Department of Health and Human Services 
                        with respect to potential fraud, waste, 
                        and abuse, including matches of a 
                        system of records with non-Federal 
                        records; or
                          (x) matches performed pursuant to 
                        section 3(d)(4) of the Achieving a 
                        Better Life Experience Act of 2014; 
                        1
          (9) the term ``recipient agency'' means any 
        agency, or contractor thereof, receiving records 
        contained in a system of records from a source agency 
        for use in a matching program;
          (10) the term ``non-Federal agency'' means any State 
        or local government, or agency thereof, which receives 
        records contained in a system of records from a source 
        agency for use in a matching program;
          (11) the term ``source agency'' means any agency 
        which discloses records contained in a system of 
        records to be used in a matching program, or any State 
        or local government, or agency thereof, which discloses 
        records to be used in a matching program;
          (12) the term ``Federal benefit program'' means any 
        program administered or funded by the Federal 
        Government, or by any agent or State on behalf of the 
        Federal Government, providing cash or in-kind 
        assistance in the form of payments, grants, loans, or 
        loan guarantees to individuals; and
          (13) the term ``Federal personnel'' means officers 
        and employees of the Government of the United States, 
        members of the uniformed services (including members of 
        the Reserve Components), individuals entitled to 
        receive immediate or deferred retirement benefits under 
        any retirement program of the Government of the United 
        States (including survivor benefits).
  (b) Conditions of Disclosure.--No agency shall disclose any 
record which is contained in a system of records by any means 
of communication to any person, or to another agency, except 
pursuant to a written request by, or with the prior written 
consent of, the individual to whom the record pertains, unless 
disclosure of the record would be--
          (1) to those officers and employees of the agency 
        which maintains the record who have a need for the 
        record in the performance of their duties;
          (2) required under section 552 of this title;
          (3) for a routine use as defined in subsection (a)(7) 
        of this section and described under subsection 
        (e)(4)(D) of this section;
          (4) to the Bureau of the Census for purposes of 
        planning or carrying out a census or survey or related 
        activity pursuant to the provisions of title 13;
          (5) to a recipient who has provided the agency with 
        advance adequate written assurance that the record will 
        be used solely as a statistical research or reporting 
        record, and the record is to be transferred in a form 
        that is not individually identifiable;
          (6) to the National Archives and Records 
        Administration as a record which has sufficient 
        historical or other value to warrant its continued 
        preservation by the United States Government, or for 
        evaluation by the Archivist of the United States or the 
        designee of the Archivist to determine whether the 
        record has such value;
          (7) to another agency or to an instrumentality of any 
        governmental jurisdiction within or under the control 
        of the United States for a civil or criminal law 
        enforcement activity if the activity is authorized by 
        law, and if the head of the agency or instrumentality 
        has made a written request to the agency which 
        maintains the record specifying the particular portion 
        desired and the law enforcement activity for which the 
        record is sought;
          (8) to a person pursuant to a showing of compelling 
        circumstances affecting the health or safety of an 
        individual if upon such disclosure notification is 
        transmitted to the last known address of such 
        individual;
          (9) to either House of Congress, or, to the extent of 
        matter within its jurisdiction, any committee or 
        subcommittee thereof, any joint committee of Congress 
        or subcommittee of any such joint committee;
          (10) to the Comptroller General, or any of his 
        authorized representatives, in the course of the 
        performance of the duties of the Government 
        Accountability Office;
          (11) pursuant to the order of a court of competent 
        jurisdiction; or
          (12) to a consumer reporting agency in accordance 
        with section 3711(e) of title 31.
  (c) Accounting of Certain Disclosures.--Each agency, with 
respect to each system of records under its control, shall--
          (1) except for disclosures made under subsections 
        (b)(1) or (b)(2) of this section, keep an accurate 
        accounting of--
                  (A) the date, nature, and purpose of each 
                disclosure of a record to any person or to 
                another agency made under subsection (b) of 
                this section; and
                  (B) the name and address of the person or 
                agency to whom the disclosure is made;
          (2) retain the accounting made under paragraph (1) of 
        this subsection for at least five years or the life of 
        the record, whichever is longer, after the disclosure 
        for which the accounting is made;
          (3) except for disclosures made under subsection 
        (b)(7) of this section, make the accounting made under 
        paragraph (1) of this subsection available to the 
        individual named in the record at his request; and
          (4) inform any person or other agency about any 
        correction or notation of dispute made by the agency in 
        accordance with subsection (d) of this section of any 
        record that has been disclosed to the person or agency 
        if an accounting of the disclosure was made.
  (d) Access to Records.--Each agency that maintains a system 
of records shall--
          (1) upon request by any individual to gain access to 
        his record or to any information pertaining to him 
        which is contained in the system, permit him and upon 
        his request, a person of his own choosing to accompany 
        him, to review the record and have a copy made of all 
        or any portion thereof in a form comprehensible to him, 
        except that the agency may require the individual to 
        furnish a written statement authorizing discussion of 
        that individual's record in the accompanying person's 
        presence;
          (2) permit the individual to request amendment of a 
        record pertaining to him and--
                  (A) not later than 10 days (excluding 
                Saturdays, Sundays, and legal public holidays) 
                after the date of receipt of such request, 
                acknowledge in writing such receipt; and
                  (B) promptly, either--
                          (i) make any correction of any 
                        portion thereof which the individual 
                        believes is not accurate, relevant, 
                        timely, or complete; or
                          (ii) inform the individual of its 
                        refusal to amend the record in 
                        accordance with his request, the reason 
                        for the refusal, the procedures 
                        established by the agency for the 
                        individual to request a review of that 
                        refusal by the head of the agency or an 
                        officer designated by the head of the 
                        agency, and the name and business 
                        address of that official;
          (3) permit the individual who disagrees with the 
        refusal of the agency to amend his record to request a 
        review of such refusal, and not later than 30 days 
        (excluding Saturdays, Sundays, and legal public 
        holidays) from the date on which the individual 
        requests such review, complete such review and make a 
        final determination unless, for good cause shown, the 
        head of the agency extends such 30-day period; and if, 
        after his review, the reviewing official also refuses 
        to amend the record in accordance with the request, 
        permit the individual to file with the agency a concise 
        statement setting forth the reasons for his 
        disagreement with the refusal of the agency, and notify 
        the individual of the provisions for judicial review of 
        the reviewing official's determination under subsection 
        (g)(1)(A) of this section;
          (4) in any disclosure, containing information about 
        which the individual has filed a statement of 
        disagreement, occurring after the filing of the 
        statement under paragraph (3) of this subsection, 
        clearly note any portion of the record which is 
        disputed and provide copies of the statement and, if 
        the agency deems it appropriate, copies of a concise 
        statement of the reasons of the agency for not making 
        the amendments requested, to persons or other agencies 
        to whom the disputed record has been disclosed; and
          (5) nothing in this section shall allow an individual 
        access to any information compiled in reasonable 
        anticipation of a civil action or proceeding.
  (e) Agency Requirements.--Each agency that maintains a system 
of records shall--
          (1) maintain in its records only such information 
        about an individual as is relevant and necessary to 
        accomplish a purpose of the agency required to be 
        accomplished by statute or by executive order of the 
        President;
          (2) collect information to the greatest extent 
        practicable directly from the subject individual when 
        the information may result in adverse determinations 
        about an individual's rights, benefits, and privileges 
        under Federal programs;
          (3) inform each individual whom it asks to supply 
        information, on the form which it uses to collect the 
        information or on a separate form that can be retained 
        by the individual--
                  (A) the authority (whether granted by 
                statute, or by executive order of the 
                President) which authorizes the solicitation of 
                the information and whether disclosure of such 
                information is mandatory or voluntary;
                  (B) the principal purpose or purposes for 
                which the information is intended to be used;
                  (C) the routine uses which may be made of the 
                information, as published pursuant to paragraph 
                (4)(D) of this subsection; and
                  (D) the effects on him, if any, of not 
                providing all or any part of the requested 
                information;
          (4) subject to the provisions of paragraph (11) of 
        this subsection, publish in the Federal Register upon 
        establishment or revision a notice of the existence and 
        character of the system of records, which notice shall 
        include--
                  (A) the name and location of the system;
                  (B) the categories of individuals on whom 
                records are maintained in the system;
                  (C) the categories of records maintained in 
                the system;
                  (D) each routine use of the records contained 
                in the system, including the categories of 
                users and the purpose of such use;
                  (E) the policies and practices of the agency 
                regarding storage, retrievability, access 
                controls, retention, and disposal of the 
                records;
                  (F) the title and business address of the 
                agency official who is responsible for the 
                system of records;
                  (G) the agency procedures whereby an 
                individual can be notified at his request if 
                the system of records contains a record 
                pertaining to him;
                  (H) the agency procedures whereby an 
                individual can be notified at his request how 
                he can gain access to any record pertaining to 
                him contained in the system of records, and how 
                he can contest its content; [and]
                  (I) the categories of sources of records in 
                the system; and
                  (J) a reference to any agency AI governance 
                charter required under section 3595 of title 44 
                that is associated with a Federal artificial 
                intelligence system which was trained on, uses, 
                or produces records contained within the system 
                of record;
          (5) maintain all records which are used by the agency 
        in making any determination about any individual with 
        such accuracy, relevance, timeliness, and completeness 
        as is reasonably necessary to assure fairness to the 
        individual in the determination;
          (6) prior to disseminating any record about an 
        individual to any person other than an agency, unless 
        the dissemination is made pursuant to subsection (b)(2) 
        of this section, make reasonable efforts to assure that 
        such records are accurate, complete, timely, and 
        relevant for agency purposes;
          (7) maintain no record describing how any individual 
        exercises rights guaranteed by the First Amendment 
        unless expressly authorized by statute or by the 
        individual about whom the record is maintained or 
        unless pertinent to and within the scope of an 
        authorized law enforcement activity;
          (8) make reasonable efforts to serve notice on an 
        individual when any record on such individual is made 
        available to any person under compulsory legal process 
        when such process becomes a matter of public record;
          (9) establish rules of conduct for persons involved 
        in the design, development, operation, or maintenance 
        of any system of records, or in maintaining any record, 
        and instruct each such person with respect to such 
        rules and the requirements of this section, including 
        any other rules and procedures adopted pursuant to this 
        section and the penalties for noncompliance;
          (10) establish appropriate administrative, technical, 
        and physical safeguards to insure the security and 
        confidentiality of records and to protect against any 
        anticipated threats or hazards to their security or 
        integrity which could result in substantial harm, 
        embarrassment, inconvenience, or unfairness to any 
        individual on whom information is maintained;
          (11) establish appropriate policies and procedures, 
        in accordance with the requirements of subchapter IV of 
        chapter 35 of title 44 to ensure the security, 
        confidentiality, and integrity of records that a 
        Federal artificial intelligence system uses, produces, 
        or modifies;
          [(11)] (12) at least 30 days prior to publication of 
        information under paragraph (4)(D) of this subsection, 
        publish in the Federal Register notice of any new use 
        or intended use of the information in the system, and 
        provide an opportunity for interested persons to submit 
        written data, views, or arguments to the agency; and
          [(12)] (13) if such agency is a recipient agency or a 
        source agency in a matching program with a non-Federal 
        agency, with respect to any establishment or revision 
        of a matching program, at least 30 days prior to 
        conducting such program, publish in the Federal 
        Register notice of such establishment or revision.
  (f) Agency Rules.--In order to carry out the provisions of 
this section, each agency that maintains a system of records 
shall promulgate rules, in accordance with the requirements 
(including general notice) of section 553 of this title, which 
shall--
          (1) establish procedures whereby an individual can be 
        notified in response to his request if any system of 
        records named by the individual contains a record 
        pertaining to him;
          (2) define reasonable times, places, and requirements 
        for identifying an individual who requests his record 
        or information pertaining to him before the agency 
        shall make the record or information available to the 
        individual;
          (3) establish procedures for the disclosure to an 
        individual upon his request of his record or 
        information pertaining to him, including special 
        procedure, if deemed necessary, for the disclosure to 
        an individual of medical records, including 
        psychological records, pertaining to him;
          (4) establish procedures for reviewing a request from 
        an individual concerning the amendment of any record or 
        information pertaining to the individual, for making a 
        determination on the request, for an appeal within the 
        agency of an initial adverse agency determination, and 
        for whatever additional means may be necessary for each 
        individual to be able to exercise fully his rights 
        under this section; and
          (5) establish fees to be charged, if any, to any 
        individual for making copies of his record, excluding 
        the cost of any search for and review of the record.
The Office of the Federal Register shall biennially compile and 
publish the rules promulgated under this subsection and agency 
notices published under subsection (e)(4) of this section in a 
form available to the public at low cost.
  (g)(1) Civil Remedies.--Whenever any agency
          (A) makes a determination under subsection (d)(3) of 
        this section not to amend an individual's record in 
        accordance with his request, or fails to make such 
        review in conformity with that subsection;
          (B) refuses to comply with an individual request 
        under subsection (d)(1) of this section;
          (C) fails to maintain any record concerning any 
        individual with such accuracy, relevance, timeliness, 
        and completeness as is necessary to assure fairness in 
        any determination relating to the qualifications, 
        character, rights, or opportunities of, or benefits to 
        the individual that may be made on the basis of such 
        record, and consequently a determination is made which 
        is adverse to the individual; or
          (D) fails to comply with any other provision of this 
        section, or any rule promulgated thereunder, in such a 
        way as to have an adverse effect on an individual,
the individual may bring a civil action against the agency, and 
the district courts of the United States shall have 
jurisdiction in the matters under the provisions of this 
subsection.
  (2)(A) In any suit brought under the provisions of subsection 
(g)(1)(A) of this section, the court may order the agency to 
amend the individual's record in accordance with his request or 
in such other way as the court may direct. In such a case the 
court shall determine the matter de novo.
  (B) The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred in 
any case under this paragraph in which the complainant has 
substantially prevailed.
  (3)(A) In any suit brought under the provisions of subsection 
(g)(1)(B) of this section, the court may enjoin the agency from 
withholding the records and order the production to the 
complainant of any agency records improperly withheld from him. 
In such a case the court shall determine the matter de novo, 
and may examine the contents of any agency records in camera to 
determine whether the records or any portion thereof may be 
withheld under any of the exemptions set forth in subsection 
(k) of this section, and the burden is on the agency to sustain 
its action.
  (B) The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred in 
any case under this paragraph in which the complainant has 
substantially prevailed.
  (4) In any suit brought under the provisions of subsection 
(g)(1)(C) or (D) of this section in which the court determines 
that the agency acted in a manner which was intentional or 
willful, the United States shall be liable to the individual in 
an amount equal to the sum of--
          (A) actual damages sustained by the individual as a 
        result of the refusal or failure, but in no case shall 
        a person entitled to recovery receive less than the sum 
        of $1,000; and
          (B) the costs of the action together with reasonable 
        attorney fees as determined by the court.
  (5) An action to enforce any liability created under this 
section may be brought in the district court of the United 
States in the district in which the complainant resides, or has 
his principal place of business, or in which the agency records 
are situated, or in the District of Columbia, without regard to 
the amount in controversy, within two years from the date on 
which the cause of action arises, except that where an agency 
has materially and willfully misrepresented any information 
required under this section to be disclosed to an individual 
and the information so misrepresented is material to 
establishment of the liability of the agency to the individual 
under this section, the action may be brought at any time 
within two years after discovery by the individual of the 
misrepresentation. Nothing in this section shall be construed 
to authorize any civil action by reason of any injury sustained 
as the result of a disclosure of a record prior to September 
27, 1975.
  (h) Rights of Legal Guardians.--For the purposes of this 
section, the parent of any minor, or the legal guardian of any 
individual who has been declared to be incompetent due to 
physical or mental incapacity or age by a court of competent 
jurisdiction, may act on behalf of the individual.
  (i)(1) Criminal Penalties.--Any officer or employee of an 
agency, who by virtue of his employment or official position, 
has possession of, or access to, agency records which contain 
individually identifiable information the disclosure of which 
is prohibited by this section or by rules or regulations 
established thereunder, and who knowing that disclosure of the 
specific material is so prohibited, willfully discloses the 
material in any manner to any person or agency not entitled to 
receive it, shall be guilty of a misdemeanor and fined not more 
than $5,000.
  (2) Any officer or employee of any agency who willfully 
maintains a system of records without meeting the notice 
requirements of subsection (e)(4) of this section shall be 
guilty of a misdemeanor and fined not more than $5,000.
  (3) Any person who knowingly and willfully requests or 
obtains any record concerning an individual from an agency 
under false pretenses shall be guilty of a misdemeanor and 
fined not more than $5,000.
  (j) General Exemptions.--The head of any agency may 
promulgate rules, in accordance with the requirements 
(including general notice) of sections 553(b)(1), (2), and (3), 
(c), and (e) of this title, to exempt any system of records 
within the agency from any part of this section except 
subsections (b), (c)(1) and (2), (e)(4)(A) through (F), (e)(6), 
(7), (9), (10), and (11), and (i) if the system of records is--
          (1) maintained by the Central Intelligence Agency; or
          (2) maintained by an agency or component thereof 
        which performs as its principal function any activity 
        pertaining to the enforcement of criminal laws, 
        including police efforts to prevent, control, or reduce 
        crime or to apprehend criminals, and the activities of 
        prosecutors, courts, correctional, probation, pardon, 
        or parole authorities, and which consists of (A) 
        information compiled for the purpose of identifying 
        individual criminal offenders and alleged offenders and 
        consisting only of identifying data and notations of 
        arrests, the nature and disposition of criminal 
        charges, sentencing, confinement, release, and parole 
        and probation status; (B) information compiled for the 
        purpose of a criminal investigation, including reports 
        of informants and investigators, and associated with an 
        identifiable individual; or (C) reports identifiable to 
        an individual compiled at any stage of the process of 
        enforcement of the criminal laws from arrest or 
        indictment through release from supervision.
At the time rules are adopted under this subsection, the agency 
shall include in the statement required under section 553(c) of 
this title, the reasons why the system of records is to be 
exempted from a provision of this section.
  (k) Specific Exemptions.--The head of any agency may 
promulgate rules, in accordance with the requirements 
(including general notice) of sections 553(b)(1), (2), and (3), 
(c), and (e) of this title, to exempt any system of records 
within the agency from subsections (c)(3), (d), (e)(1), 
(e)(4)(G), (H), and (I) and (f) of this section if the system 
of records is--
          (1) subject to the provisions of section 552(b)(1) of 
        this title;
          (2) investigatory material compiled for law 
        enforcement purposes, other than material within the 
        scope of subsection (j)(2) of this section: Provided, 
        however, That if any individual is denied any right, 
        privilege, or benefit that he would otherwise be 
        entitled by Federal law, or for which he would 
        otherwise be eligible, as a result of the maintenance 
        of such material, such material shall be provided to 
        such individual, except to the extent that the 
        disclosure of such material would reveal the identity 
        of a source who furnished information to the Government 
        under an express promise that the identity of the 
        source would be held in confidence, or, prior to the 
        effective date of this section, under an implied 
        promise that the identity of the source would be held 
        in confidence;
          (3) maintained in connection with providing 
        protective services to the President of the United 
        States or other individuals pursuant to section 3056 of 
        title 18;
          (4) required by statute to be maintained and used 
        solely as statistical records;
          (5) investigatory material compiled solely for the 
        purpose of determining suitability, eligibility, or 
        qualifications for Federal civilian employment, 
        military service, Federal contracts, or access to 
        classified information, but only to the extent that the 
        disclosure of such material would reveal the identity 
        of a source who furnished information to the Government 
        under an express promise that the identity of the 
        source would be held in confidence, or, prior to the 
        effective date of this section, under an implied 
        promise that the identity of the source would be held 
        in confidence;
          (6) testing or examination material used solely to 
        determine individual qualifications for appointment or 
        promotion in the Federal service the disclosure of 
        which would compromise the objectivity or fairness of 
        the testing or examination process; or
          (7) evaluation material used to determine potential 
        for promotion in the armed services, but only to the 
        extent that the disclosure of such material would 
        reveal the identity of a source who furnished 
        information to the Government under an express promise 
        that the identity of the source would be held in 
        confidence, or, prior to the effective date of this 
        section, under an implied promise that the identity of 
        the source would be held in confidence.
At the time rules are adopted under this subsection, the agency 
shall include in the statement required under section 553(c) of 
this title, the reasons why the system of records is to be 
exempted from a provision of this section.
  (l)(1) Archival Records.--Each agency record which is 
accepted by the Archivist of the United States for storage, 
processing, and servicing in accordance with section 3103 of 
title 44 shall, for the purposes of this section, be considered 
to be maintained by the agency which deposited the record and 
shall be subject to the provisions of this section. The 
Archivist of the United States shall not disclose the record 
except to the agency which maintains the record, or under rules 
established by that agency which are not inconsistent with the 
provisions of this section.
  (2) Each agency record pertaining to an identifiable 
individual which was transferred to the National Archives of 
the United States as a record which has sufficient historical 
or other value to warrant its continued preservation by the 
United States Government, prior to the effective date of this 
section, shall, for the purposes of this section, be considered 
to be maintained by the National Archives and shall not be 
subject to the provisions of this section, except that a 
statement generally describing such records (modeled after the 
requirements relating to records subject to subsections 
(e)(4)(A) through (G) of this section) shall be published in 
the Federal Register.
  (3) Each agency record pertaining to an identifiable 
individual which is transferred to the National Archives of the 
United States as a record which has sufficient historical or 
other value to warrant its continued preservation by the United 
States Government, on or after the effective date of this 
section, shall, for the purposes of this section, be considered 
to be maintained by the National Archives and shall be exempt 
from the requirements of this section except subsections 
(e)(4)(A) through (G) and (e)(9) of this section.
  (m)(1) Government Contractors.--When an agency provides by a 
contract for the operation by or on behalf of the agency of a 
system of records to accomplish an agency function, the agency 
shall, consistent with its authority, cause the requirements of 
this section to be applied to such system. For purposes of 
subsection (i) of this section any such contractor and any 
employee of such contractor, if such contract is agreed to on 
or after the effective date of this section, shall be 
considered to be an employee of an agency.
  (2) A consumer reporting agency to which a record is 
disclosed under section 3711(e) of title 31 shall not be 
considered a contractor for the purposes of this section.
  (n) Mailing Lists.--An individual's name and address may not 
be sold or rented by an agency unless such action is 
specifically authorized by law. This provision shall not be 
construed to require the withholding of names and addresses 
otherwise permitted to be made public.
  (o) Matching Agreements.--(1) No record which is contained in 
a system of records may be disclosed to a recipient agency or 
non-Federal agency for use in a computer matching program 
except pursuant to a written agreement between the source 
agency and the recipient agency or non-Federal agency 
specifying--
          (A) the purpose and legal authority for conducting 
        the program;
          (B) the justification for the program and the 
        anticipated results, including a specific estimate of 
        any savings;
          (C) a description of the records that will be 
        matched, including each data element that will be used, 
        the approximate number of records that will be matched, 
        and the projected starting and completion dates of the 
        matching program;
          (D) procedures for providing individualized notice at 
        the time of application, and notice periodically 
        thereafter as directed by the Data Integrity Board of 
        such agency (subject to guidance provided by the 
        Director of the Office of Management and Budget 
        pursuant to subsection (v)), to--
                  (i) applicants for and recipients of 
                financial assistance or payments under Federal 
                benefit programs, and
                  (ii) applicants for and holders of positions 
                as Federal personnel,
that any information provided by such applicants, recipients, 
holders, and individuals may be subject to verification through 
matching programs;
          (E) procedures for verifying information produced in 
        such matching program as required by subsection (p);
          (F) procedures for the retention and timely 
        destruction of identifiable records created by a 
        recipient agency or non-Federal agency in such matching 
        program;
          (G) procedures for ensuring the administrative, 
        technical, and physical security of the records matched 
        and the results of such programs;
          (H) prohibitions on duplication and redisclosure of 
        records provided by the source agency within or outside 
        the recipient agency or the non-Federal agency, except 
        where required by law or essential to the conduct of 
        the matching program;
          (I) procedures governing the use by a recipient 
        agency or non-Federal agency of records provided in a 
        matching program by a source agency, including 
        procedures governing return of the records to the 
        source agency or destruction of records used in such 
        program;
          (J) information on assessments that have been made on 
        the accuracy of the records that will be used in such 
        matching program; and
          (K) that the Comptroller General may have access to 
        all records of a recipient agency or a non-Federal 
        agency that the Comptroller General deems necessary in 
        order to monitor or verify compliance with the 
        agreement.
  (2)(A) A copy of each agreement entered into pursuant to 
paragraph (1) shall--
          (i) be transmitted to the Committee on Governmental 
        Affairs of the Senate and the Committee on Government 
        Operations of the House of Representatives; and
          (ii) be available upon request to the public.
  (B) No such agreement shall be effective until 30 days after 
the date on which such a copy is transmitted pursuant to 
subparagraph (A)(i).
  (C) Such an agreement shall remain in effect only for such 
period, not to exceed 18 months, as the Data Integrity Board of 
the agency determines is appropriate in light of the purposes, 
and length of time necessary for the conduct, of the matching 
program.
  (D) Within 3 months prior to the expiration of such an 
agreement pursuant to subparagraph (C), the Data Integrity 
Board of the agency may, without additional review, renew the 
matching agreement for a current, ongoing matching program for 
not more than one additional year if--
          (i) such program will be conducted without any 
        change; and
          (ii) each party to the agreement certifies to the 
        Board in writing that the program has been conducted in 
        compliance with the agreement.
  (p) Verification and Opportunity to Contest Findings.--(1) In 
order to protect any individual whose records are used in a 
matching program, no recipient agency, non-Federal agency, or 
source agency may suspend, terminate, reduce, or make a final 
denial of any financial assistance or payment under a Federal 
benefit program to such individual, or take other adverse 
action against such individual, as a result of information 
produced by such matching program, until--
          (A)(i) the agency has independently verified the 
        information; or
          (ii) the Data Integrity Board of the agency, or in 
        the case of a non-Federal agency the Data Integrity 
        Board of the source agency, determines in accordance 
        with guidance issued by the Director of the Office of 
        Management and Budget that--
                  (I) the information is limited to 
                identification and amount of benefits paid by 
                the source agency under a Federal benefit 
                program; and
                  (II) there is a high degree of confidence 
                that the information provided to the recipient 
                agency is accurate;
          (B) the individual receives a notice from the agency 
        containing a statement of its findings and informing 
        the individual of the opportunity to contest such 
        findings; and
          (C)(i) the expiration of any time period established 
        for the program by statute or regulation for the 
        individual to respond to that notice; or
          (ii) in the case of a program for which no such 
        period is established, the end of the 30-day period 
        beginning on the date on which notice under 
        subparagraph (B) is mailed or otherwise provided to the 
        individual.
  (2) Independent verification referred to in paragraph (1) 
requires investigation and confirmation of specific information 
relating to an individual that is used as a basis for an 
adverse action against the individual, including where 
applicable investigation and confirmation of--
          (A) the amount of any asset or income involved;
          (B) whether such individual actually has or had 
        access to such asset or income for such individual's 
        own use; and
          (C) the period or periods when the individual 
        actually had such asset or income.
  (3) Notwithstanding paragraph (1), an agency may take any 
appropriate action otherwise prohibited by such paragraph if 
the agency determines that the public health or public safety 
may be adversely affected or significantly threatened during 
any notice period required by such paragraph.
  (q) Sanctions.--(1) Notwithstanding any other provision of 
law, no source agency may disclose any record which is 
contained in a system of records to a recipient agency or non-
Federal agency for a matching program if such source agency has 
reason to believe that the requirements of subsection (p), or 
any matching agreement entered into pursuant to subsection (o), 
or both, are not being met by such recipient agency.
  (2) No source agency may renew a matching agreement unless--
          (A) the recipient agency or non-Federal agency has 
        certified that it has complied with the provisions of 
        that agreement; and
          (B) the source agency has no reason to believe that 
        the certification is inaccurate.
  (r) Report on New Systems and Matching Programs.--Each agency 
that proposes to establish or make a significant change in a 
system of records or a matching program shall provide adequate 
advance notice of any such proposal (in duplicate) to the 
Committee on Government Operations of the House of 
Representatives, the Committee on Governmental Affairs of the 
Senate, and the Office of Management and Budget in order to 
permit an evaluation of the probable or potential effect of 
such proposal on the privacy or other rights of individuals.
  (s) Biennial Report.--The President shall biennially submit 
to the Speaker of the House of Representatives and the 
President pro tempore of the Senate a report--
          (1) describing the actions of the Director of the 
        Office of Management and Budget pursuant to section 6 
        of the Privacy Act of 1974 during the preceding 2 
        years;
          (2) describing the exercise of individual rights of 
        access and amendment under this section during such 
        years;
          (3) identifying changes in or additions to systems of 
        records;
          (4) containing such other information concerning 
        administration of this section as may be necessary or 
        useful to the Congress in reviewing the effectiveness 
        of this section in carrying out the purposes of the 
        Privacy Act of 1974.
  (t)(1) Effect of Other Laws.--No agency shall rely on any 
exemption contained in section 552 of this title to withhold 
from an individual any record which is otherwise accessible to 
such individual under the provisions of this section.
  (2) No agency shall rely on any exemption in this section to 
withhold from an individual any record which is otherwise 
accessible to such individual under the provisions of section 
552 of this title.
  (u) Data Integrity Boards.--(1) Every agency conducting or 
participating in a matching program shall establish a Data 
Integrity Board to oversee and coordinate among the various 
components of such agency the agency's implementation of this 
section.
  (2) Each Data Integrity Board shall consist of senior 
officials designated by the head of the agency, and shall 
include any senior official designated by the head of the 
agency as responsible for implementation of this section, and 
the inspector general of the agency, if any. The inspector 
general shall not serve as chairman of the Data Integrity 
Board.
  (3) Each Data Integrity Board--
          (A) shall review, approve, and maintain all written 
        agreements for receipt or disclosure of agency records 
        for matching programs to ensure compliance with 
        subsection (o), and all relevant statutes, regulations, 
        and guidelines;
          (B) shall review all matching programs in which the 
        agency has participated during the year, either as a 
        source agency or recipient agency, determine compliance 
        with applicable laws, regulations, guidelines, and 
        agency agreements, and assess the costs and benefits of 
        such programs;
          (C) shall review all recurring matching programs in 
        which the agency has participated during the year, 
        either as a source agency or recipient agency, for 
        continued justification for such disclosures;
          (D) shall compile an annual report, which shall be 
        submitted to the head of the agency and the Office of 
        Management and Budget and made available to the public 
        on request, describing the matching activities of the 
        agency, including--
                  (i) matching programs in which the agency has 
                participated as a source agency or recipient 
                agency;
                  (ii) matching agreements proposed under 
                subsection (o) that were disapproved by the 
                Board;
                  (iii) any changes in membership or structure 
                of the Board in the preceding year;
                  (iv) the reasons for any waiver of the 
                requirement in paragraph (4) of this section 
                for completion and submission of a cost-benefit 
                analysis prior to the approval of a matching 
                program;
                  (v) any violations of matching agreements 
                that have been alleged or identified and any 
                corrective action taken; and
                  (vi) any other information required by the 
                Director of the Office of Management and Budget 
                to be included in such report;
          (E) shall serve as a clearinghouse for receiving and 
        providing information on the accuracy, completeness, 
        and reliability of records used in matching programs;
          (F) shall provide interpretation and guidance to 
        agency components and personnel on the requirements of 
        this section for matching programs;
          (G) shall review agency recordkeeping and disposal 
        policies and practices for matching programs to assure 
        compliance with this section; and
          (H) may review and report on any agency matching 
        activities that are not matching programs.
  (4)(A) Except as provided in subparagraphs (B) and (C), a 
Data Integrity Board shall not approve any written agreement 
for a matching program unless the agency has completed and 
submitted to such Board a cost-benefit analysis of the proposed 
program and such analysis demonstrates that the program is 
likely to be cost effective.
  (B) The Board may waive the requirements of subparagraph (A) 
of this paragraph if it determines in writing, in accordance 
with guidelines prescribed by the Director of the Office of 
Management and Budget, that a cost-benefit analysis is not 
required.
  (C) A cost-benefit analysis shall not be required under 
subparagraph (A) prior to the initial approval of a written 
agreement for a matching program that is specifically required 
by statute. Any subsequent written agreement for such a program 
shall not be approved by the Data Integrity Board unless the 
agency has submitted a cost-benefit analysis of the program as 
conducted under the preceding approval of such agreement.
  (5)(A) If a matching agreement is disapproved by a Data 
Integrity Board, any party to such agreement may appeal the 
disapproval to the Director of the Office of Management and 
Budget. Timely notice of the filing of such an appeal shall be 
provided by the Director of the Office of Management and Budget 
to the Committee on Governmental Affairs of the Senate and the 
Committee on Government Operations of the House of 
Representatives.
  (B) The Director of the Office of Management and Budget may 
approve a matching agreement notwithstanding the disapproval of 
a Data Integrity Board if the Director determines that--
          (i) the matching program will be consistent with all 
        applicable legal, regulatory, and policy requirements;
          (ii) there is adequate evidence that the matching 
        agreement will be cost-effective; and
          (iii) the matching program is in the public interest.
  (C) The decision of the Director to approve a matching 
agreement shall not take effect until 30 days after it is 
reported to committees described in subparagraph (A).
  (D) If the Data Integrity Board and the Director of the 
Office of Management and Budget disapprove a matching program 
proposed by the inspector general of an agency, the inspector 
general may report the disapproval to the head of the agency 
and to the Congress.
  (6) In the reports required by paragraph (3)(D), agency 
matching activities that are not matching programs may be 
reported on an aggregate basis, if and to the extent necessary 
to protect ongoing law enforcement or counterintelligence 
investigations.
  (v) Office of Management and Budget Responsibilities.--The 
Director of the Office of Management and Budget shall--
          (1) develop and, after notice and opportunity for 
        public comment, prescribe guidelines and regulations 
        for the use of agencies in implementing the provisions 
        of this section; and
          (2) provide continuing assistance to and oversight of 
        the implementation of this section by agencies.
  (w) Applicability to Bureau of Consumer Financial 
Protection.--Except as provided in the Consumer Financial 
Protection Act of 2010, this section shall apply with respect 
to the Bureau of Consumer Financial Protection.

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                       ADVANCING AMERICAN AI ACT

           *       *       *       *       *       *       *

                     DIVISION G--HOMELAND SECURITY

           *       *       *       *       *       *       *

                  TITLE LXXII--GOVERNMENTAL AFFAIRS

           *       *       *       *       *       *       *

                 Subtitle B--Advancing American AI Act

           *       *       *       *       *       *       *

SEC. 7224. PRINCIPLES AND POLICIES FOR USE OF ARTIFICIAL INTELLIGENCE 
            IN GOVERNMENT.

  [(a) Guidance.--The Director shall, when developing the 
guidance required under section 104(a) of the AI in Government 
Act of 2020 (title I of division U of Public Law 116-260), 
consider--
          [(1) the considerations and recommended practices 
        identified by the National Security Commission on 
        Artificial Intelligence in the report entitled ``Key 
        Considerations for the Responsible Development and 
        Fielding of AI'', as updated in April 2021;
          [(2) the principles articulated in Executive Order 
        13960 (85 Fed. Reg. 78939; relating to promoting the 
        use of trustworthy artificial intelligence in 
        Government); and
          [(3) the input of--
                  [(A) the Administrator of General Services;
                  [(B) relevant interagency councils, such as 
                the Federal Privacy Council, the Chief 
                Financial Officers Council, the Chief 
                Information Officers Council, and the Chief 
                Data Officers Council;
                  [(C) other governmental and nongovernmental 
                privacy, civil rights, and civil liberties 
                experts;
                  [(D) academia;
                  [(E) industry technology and data science 
                experts; and
                  [(F) any other individual or entity the 
                Director determines to be appropriate.]
  (b) Department Policies and Processes for Procurement and Use 
of Artificial Intelligence-enabled Systems..--Not later than 
180 days after the date of enactment of this Act--
          (1) the Secretary of Homeland Security, with the 
        participation of the Chief Procurement Officer, the 
        Chief Information Officer, the Chief Privacy Officer, 
        and the Officer for Civil Rights and Civil Liberties of 
        the Department and any other person determined to be 
        relevant by the Secretary of Homeland Security, shall 
        issue policies and procedures for the Department 
        related to--
                  (A) the acquisition and use of artificial 
                intelligence; and
                  (B) considerations for the risks and impacts 
                related to artificial intelligence-enabled 
                systems, including associated data of machine 
                learning systems, to ensure that full 
                consideration is given to--
                          (i) the privacy, civil rights, and 
                        civil liberties impacts of artificial 
                        intelligence-enabled systems; and
                          (ii) security against misuse, 
                        degradation, or rending inoperable of 
                        artificial intelligence-enabled 
                        systems; and
          (2) the Chief Privacy Officer and the Officer for 
        Civil Rights and Civil Liberties of the Department 
        shall report to Congress on any additional staffing or 
        funding resources that may be required to carry out the 
        requirements of this subsection.
  (c) Inspector General.--Not later than 180 days after the 
date of enactment of this Act, the Inspector General of the 
Department shall identify any training and investments needed 
to enable employees of the Office of the Inspector General to 
continually advance their understanding of--
          (1) artificial intelligence systems;
          (2) best practices for governance, oversight, and 
        audits of the use of artificial intelligence systems; 
        and
          (3) how the Office of the Inspector General is using 
        artificial intelligence to enhance audit and 
        investigative capabilities, including actions to--
                  (A) ensure the integrity of audit and 
                investigative results; and
                  (B) guard against bias in the selection and 
                conduct of audits and investigations.
  [(d) Artificial Intelligence Hygiene and Protection of 
Government Information, Privacy, Civil Rights, and Civil 
Liberties.--
          [(1) Establishment.--Not later than 1 year after the 
        date of enactment of this Act, the Director, in 
        consultation with a working group consisting of members 
        selected by the Director from appropriate interagency 
        councils, shall develop an initial means by which to--
                  [(A) ensure that contracts for the 
                acquisition of an artificial intelligence 
                system or service--
                          [(i) align with the guidance issued 
                        to the head of each agency under 
                        section 104(a) of the AI in Government 
                        Act of 2020 (title I of division U of 
                        Public Law 116-260);
                          [(ii) address protection of privacy, 
                        civil rights, and civil liberties;
                          [(iii) address the ownership and 
                        security of data and other information 
                        created, used, processed, stored, 
                        maintained, disseminated, disclosed, or 
                        disposed of by a contractor or 
                        subcontractor on behalf of the Federal 
                        Government; and
                          [(iv) include considerations for 
                        securing the training data, algorithms, 
                        and other components of any artificial 
                        intelligence system against misuse, 
                        unauthorized alteration, degradation, 
                        or rendering inoperable; and
                  [(B) address any other issue or concern 
                determined to be relevant by the Director to 
                ensure appropriate use and protection of 
                privacy and Government data and other 
                information.
          [(2) Consultation.--In developing the considerations 
        under paragraph (1)(A)(iv), the Director shall consult 
        with the Secretary of Homeland Security, the Secretary 
        of Energy, the Director of the National Institute of 
        Standards and Technology, and the Director of National 
        Intelligence.
          [(3) Review.--The Director--
                  [(A) should continuously update the means 
                developed under paragraph (1); and
                  [(B) not later than 2 years after the date of 
                enactment of this Act and not less frequently 
                than every 2 years thereafter, shall update the 
                means developed under paragraph (1).
          [(4) Briefing.--The Director shall brief the 
        appropriate congressional committees--
                  [(A) not later than 90 days after the date of 
                enactment of this Act and thereafter on a 
                quarterly basis until the Director first 
                implements the means developed under paragraph 
                (1); and
                  [(B) annually thereafter on the 
                implementation of this subsection.
          [(5) Sunset.--This subsection shall cease to be 
        effective on the date that is 5 years after the date of 
        enactment of this Act.]

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                              ----------                              

                      AI IN GOVERNMENT ACT OF 2020

           *       *       *       *       *       *       *

                    DIVISION U--HOMELAND  SECURITY
                     AND GOVERNMENTAL AFFAIRS PRO-
                     VISIONS

                   TITLE I--AI IN GOVERNMENT ACT OF
                                  2020

           *       *       *       *       *       *       *

[SEC. 104. GUIDANCE FOR AGENCY USE OF ARTIFICIAL INTEL-
           LIGENCE.

  [(a) Guidance.--Not later than 270 days after the date of 
enactment of this Act, the Director, in coordination with the 
Director of the Office of Science and Technology Policy in 
consultation with the Administrator and any other relevant 
agencies and key stakeholders as determined by the Director, 
shall issue a memorandum to the head of each agency that 
shall--
          [(1) inform the development of policies regarding 
        Federal acquisition and use by agencies regarding 
        technologies that are empowered or enabled by 
        artificial intelligence, including an identification of 
        the responsibilities of agency officials managing the 
        use of such technology;
          [(2) recommend approaches to remove barriers for use 
        by agencies of artificial intelligence technologies in 
        order to promote the innovative application of those 
        technologies while protecting civil liberties, civil 
        rights, and economic and national security;
          [(3) identify best practices for identifying, 
        assessing, and mitigating any discriminatory impact or 
        bias on the basis of any classification protected under 
        Federal nondiscrimination laws, or any unintended 
        consequence of the use of artificial intelligence, 
        including policies to identify data used to train 
        artificial intelligence algorithms as well as the data 
        analyzed by artificial intelligence used by the 
        agencies; and
          [(4) provide a template of the required contents of 
        the agency plans described in subsection (c).
  [(b) Public Comment.--To help ensure public trust in the 
applications of artificial intelligence technologies, the 
Director shall issue a draft version of the memorandum required 
under subsection (a) for public comment not later than 180 days 
after date of enactment of this Act.
  [(c) Plans.--Not later than 180 days after the date on which 
the Director issues the memorandum required under subsection 
(a) or an update to the memorandum required under subsection 
(d), the head of each agency shall submit to the Director and 
post on a publicly available page on the website of the 
agency--
          [(1) a plan to achieve consistency with the 
        memorandum; or
          [(2) a written determination that the agency does not 
        use and does not anticipate using artificial 
        intelligence.
  [(d) Updates.--Not later than 2 years after the date on which 
the Director issues the memorandum required under subsection 
(a), and every 2 years thereafter for 10 years, the Director 
shall issue updates to the memorandum.]

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