Rep. Sara Jacobs Introduces Bill to Hold AI Accountable For Breaking the Law
Rep. Sara Jacobs (CA-51) introduced landmark, comprehensive legislation to hold companies accountable when AI is used to violate existing federal laws. AI and other algorithmic decision-making systems are increasingly shaping outcomes in people’s lives – whether people get a job, a loan, housing, health care, and more. Federal agencies enforce laws in all of these areas, but they don’t always have a clear, coordinated basis for writing rules when AI contributes to harms that are already illegal. The Sectoral AI Governance Act would give federal agencies a consistent framework for writing and issuing rules whenever the use of AI is likely to materially contribute to violations of existing federal laws.
AI is increasingly used in critical, high-stakes decisions like health care coverage and mortgage approvals, and so much more. For example, if a rental screening algorithm trained on biased data downgraded applicants from majority-Black or Hispanic zip codes, even when their income and credit are identical to those of approved applicants, that could violate the Fair Housing Act. The Sectoral AI Governance Act would allow the Department of Housing and Urban Development to require safeguards, such as testing rental screening tools for discriminatory patterns before they are used.
Rep. Sara Jacobs said: “Federal laws shouldn’t become optional just because technology is new. AI is already helping make life-altering decisions for millions of Americans – whether they get a loan, a job, or health care coverage – but too often, it’s operating in a gray area. My Sectoral AI Governance Act gives federal agencies clearer authority to write and enforce rules when AI is used to break existing federal laws. We can’t let the American people’s rights and protections become meaningless the moment a company outsources a decision to an algorithm and my bill is part of the solution.”
Owen J. Daniels, Associate Director of Analysis and Andrew W. Marshall Fellow at CSET, said: “Frameworks for responsible AI deployment do not need to be entirely built from scratch, as our research at CSET has outlined in detail. While the federal government explores different avenues for AI rule-making, this bill highlights how agencies can use existing authorities to help to tackle AI governance today and ensure responsible adoption of this critical technology.”
“AI is already being deployed in high-stakes decisions that affect Americans’ jobs, benefits, housing, health care, and basic rights,” said ARI President Brad Carson. “The Sectoral AI Governance Act is a smart, practical step toward making sure federal agencies can apply the laws already on the books when algorithmic systems contribute to real-world harms. By giving agencies clear authority, requiring coordination across government, and preserving the role of states, this bill strikes the right balance between responsible innovation and meaningful accountability.”
“Effective oversight of AI doesn’t mean we need to start from scratch, but it does mean we need to modernize. By directing every agency to provide clear guidance on how existing laws apply to algorithms and AI, this bill will make sure our regulators can keep pace as technology evolves. It would also clear the way for more industries to adopt helpful technologies while assuring consumers that they’re protected from harm,” said Ruth Whittaker, Director of Technology Policy at Third Way.
Joshua Miller, Director of Congress Watch at Public Citizen, said: “Public Citizen applauds these efforts to ensure that each federal agency is empowered to protect the health, safety, and well-being of the American people from harmful uses of algorithmic decision-making systems. As AI technologies become integrated into housing, employment, healthcare, finance, consumer protection, and public services, agencies should be forceful in protecting the American people from any corporations that break the law using AI.”
“Algorithms are used to make decisions in nearly every aspect of life, from a person’s job application to their health treatment and eligibility for benefits. Agencies already have the authority to protect us in areas like employment, education, healthcare, lending, and more, but AI and new technologies can create challenges for regulators under existing law. The Sectoral AI Governance Act ensures that agencies are empowered to regulate AI, such as by requiring that workers, parents, and patients receive notice of AI used on the job, at their kids' schools, or in their healthcare. The Sectoral AI Governance Act helps ensure that people will be safe from discrimination when AI tools are used,” said Jina John, Senior Policy Counsel, AI, Privacy, & Technology at ACLU.
The Sectoral AI Governance Act would:
- Require agencies to seek early public input through an ANPRM before proposing a rule, while allowing agencies to rely on a prior rulemaking record or ANPRM where sufficient.
- Require agencies to consult with OIRA, as appropriate, before issuing a proposed rule regarding reasonably foreseeable overlap, inconsistency, or conflict with other agency rules or proposed rules.
- Require technical consultation with OSTP and NIST, as appropriate, and direct OMB/OIRA to issue guidance to help resolve conflicts and promote consistency across agencies.
- Require agencies to consider and, where practicable, mitigate unnecessary disruption to government services or public benefits.
- Require periodic review of rules and amendment or repeal where rules are no longer appropriate or no longer appropriately tailored.
- Require biennial public reporting on how agencies use, or decline to use, the authority.
- Limit enforcement of rules issued under the Act to civil and administrative enforcement by the agency, while leaving unchanged enforcement available for violations of the underlying Federal law.
- Preserve State authority to regulate algorithmic decision-making systems, except where State regulation conflicts with the Act or a rule issued under it.
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