I 

118TH CONGRESS 

1ST SESSION H. R. 5628 

To direct the Federal Trade Commission to require impact assessments of 

automated decision systems and augmented critical decision processes, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 21, 2023 

Ms. CLARKE of New York (for herself, Ms. KELLY of Illinois, Mr. CLEAVER, 

Ms. BUSH, Ms. JAYAPAL, Mrs. TRAHAN, Mr. VEASEY, Ms. BARRAGA ́N, 

Mr. COHEN, Mr. BOWMAN, Mr. EVANS, Mr. CARSON, Ms. PRESSLEY, Ms. 

WILSON of Florida, and Mr. HUFFMAN) introduced the following bill; 

which was referred to the Committee on Energy and Commerce 

A BILL 

To direct the Federal Trade Commission to require impact 

assessments of automated decision systems and augmented critical decision processes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Algorithmic Account5 ability Act of 2023’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) AUGMENTED CRITICAL DECISION PROC2 ESS.—The term ‘‘augmented critical decision proc3 ess’’ means a process, procedure, or other activity 

4 that employs an automated decision system to make 

5 a critical decision. 

6 (2) AUTOMATED DECISION SYSTEM.—The term 

7 ‘‘automated decision system’’ means any system, 

8 software, or process (including one derived from ma9 chine learning, statistics, or other data processing or 

10 artificial intelligence techniques and excluding pas11 sive computing infrastructure) that uses computa12 tion, the result of which serves as a basis for a deci13 sion or judgment. 

14 (3) BIOMETRICS.—The term ‘‘biometrics’’ 

15 means any information that represents a biological, 

16 physiological, or behavioral attribute or feature of a 

17 consumer. 

18 (4) CHAIR.—The term ‘‘Chair’’ means the 

19 Chair of the Commission. 

20 (5) COMMISSION.—The term ‘‘Commission’’ 

21 means the Federal Trade Commission. 

22 (6) CONSUMER.—The term ‘‘consumer’’ means 

23 an individual. 

24 (7) COVERED ENTITY.— 


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1 (A) IN GENERAL.—The term ‘‘covered en2 tity’’ means any person, partnership, or cor3 poration over which the Commission has juris4 diction under section 5(a)(2) of the Federal 

5 Trade Commission Act (15 U.S.C. 45(a)(2))— 

6 (i) that deploys any augmented crit7 ical decision process; and 

8 (I) had greater than $50,000,000 

9 in average annual gross receipts or is 

10 deemed to have greater than 

11 $250,000,000 in equity value for the 

12 3-taxable-year period (or for the pe13 riod during which the person, partner14 ship, or corporation has been in exist15 ence, if such period is less than 3 

16 years) preceding the most recent fiscal 

17 year, as determined in accordance 

18 with paragraphs (2) and (3) of section 

19 448(c) of the Internal Revenue Code 

20 of 1986; 

21 (II) possesses, manages, modi22 fies, handles, analyzes, controls, or 

23 otherwise uses identifying information 

24 about more than 1,000,000 con25 sumers, households, or consumer deVerDate Sep 11 2014 00:26 Sep 26, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5628.IH H5628

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1 vices for the purpose of developing or 

2 deploying any automated decision sys3 tem or augmented critical decision 

4 process; or 

5 (III) is substantially owned, oper6 ated, or controlled by a person, part7 nership, or corporation that meets the 

8 requirements under subclause (I) or 

9 (II); 

10 (ii) that— 

11 (I) had greater than $5,000,000 

12 in average annual gross receipts or is 

13 deemed to have greater than 

14 $25,000,000 in equity value for the 3- 

15 taxable-year period (or for the period 

16 during which the person, partnership, 

17 or corporation has been in existence, 

18 if such period is less than 3 years) 

19 preceding the most recent fiscal year, 

20 as determined in accordance with 

21 paragraphs (2) and (3) of section 

22 448(c) of the Internal Revenue Code 

23 of 1986; and 

24 (II) deploys any automated deci25 sion system that is developed for imVerDate Sep 11 2014 00:26 Sep 26, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5628.IH H5628

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1 plementation or use, or that the per2 son, partnership, or corporation rea3 sonably expects to be implemented or 

4 used, in an augmented critical deci5 sion process by any person, partner6 ship, or corporation if such person, 

7 partnership, or corporation meets the 

8 requirements described in clause (i); 

9 or 

10 (iii) that met the criteria described in 

11 clause (i) or (ii) within the previous 3 

12 years. 

13 (B) INFLATION ADJUSTMENT.—For pur14 poses of applying this paragraph in any fiscal 

15 year after the first fiscal year that begins on or 

16 after the date of enactment of this Act, each of 

17 the dollar amounts specified in subparagraph 

18 (A) shall be increased by the percentage in19 crease (if any) in the consumer price index for 

20 all urban consumers (U.S. city average) from 

21 such first fiscal year that begins after such date 

22 of enactment to the fiscal year involved. 

23 (8) CRITICAL DECISION.—The term ‘‘critical 

24 decision’’ means a decision or judgment that has any 

25 legal, material, or similarly significant effect on a 


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1 consumer’s life relating to access to or the cost, 

2 terms, or availability of— 

3 (A) education and vocational training, in4 cluding assessment, accreditation, or certifi5 cation; 

6 (B) employment, workers management, or 

7 self-employment; 

8 (C) essential utilities, such as electricity, 

9 heat, water, internet or telecommunications ac10 cess, or transportation; 

11 (D) family planning, including adoption 

12 services or reproductive services; 

13 (E) financial services, including any finan14 cial service provided by a mortgage company, 

15 mortgage broker, or creditor; 

16 (F) healthcare, including mental 

17 healthcare, dental, or vision; 

18 (G) housing or lodging, including any rent19 al or short-term housing or lodging; 

20 (H) legal services, including private arbi21 tration or mediation; or 

22 (I) any other service, program, or oppor23 tunity decisions about which have a comparably 

24 legal, material, or similarly significant effect on 


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1 a consumer’s life as determined by the Commis2 sion through rulemaking. 

3 (9) DEPLOY.—The term ‘‘deploy’’ means to im4 plement, use, or make available for sale, license, or 

5 other commercial relationship. 

6 (10) DEVELOP.—The term ‘‘develop’’ means to 

7 design, code, produce, customize, or otherwise create 

8 or modify. 

9 (11) IDENTIFYING INFORMATION.—The term 

10 ‘‘identifying information’’ means any information, 

11 regardless of how the information is collected, in12 ferred, predicted, or obtained that identifies or rep13 resents a consumer, household, or consumer device 

14 through data elements or attributes, such as name, 

15 postal address, telephone number, biometrics, email 

16 address, internet protocol address, social security 

17 number, or any other identifying number, identifier, 

18 or code. 

19 (12) IMPACT ASSESSMENT.—The term ‘‘impact 

20 assessment’’ means the ongoing study and evalua21 tion of an automated decision system or augmented 

22 critical decision process and its impact on con23 sumers. 

24 (13) PASSIVE COMPUTING INFRASTRUCTURE.— 

25 The term ‘‘passive computing infrastructure’’ means 


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1 any intermediary technology that does not influence 

2 or determine the outcome of a decision, including— 

3 (A) web hosting; 

4 (B) domain registration; 

5 (C) networking; 

6 (D) caching; 

7 (E) data storage; or 

8 (F) cybersecurity. 

9 (14) STATE.—The term ‘‘State’’ means each of 

10 the 50 States, the District of Columbia, and any ter11 ritory or possession of the United States. 

12 (15) SUMMARY REPORT.—The term ‘‘summary 

13 report’’ means documentation of a subset of infor14 mation required to be addressed by the impact as15 sessment as described in this Act or determined ap16 propriate by the Commission. 

17 (16) THIRD-PARTY DECISION RECIPIENT.—The 

18 term ‘‘third-party decision recipient’’ means any per19 son, partnership, or corporation (beyond the con20 sumer and the covered entity) that receives a copy 

21 of or has access to the results of any decision or 

22 judgment that results from a covered entity’s deploy23 ment of an automated decision system or augmented 

24 critical decision process. 


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1 SEC. 3. ASSESSING THE IMPACT OF AUTOMATED DECISION 

2 SYSTEMS AND AUGMENTED CRITICAL DECI3 SION PROCESSES. 

4 (a) ACTS PROHIBITED.— 

5 (1) IN GENERAL.—It is unlawful for— 

6 (A) any covered entity to violate a regula7 tion promulgated under subsection (b); or 

8 (B) any person to knowingly provide sub9 stantial assistance to any covered entity in vio10 lating subsection (b). 

11 (2) PREEMPTION OF PRIVATE CONTRACTS.—It 

12 shall be unlawful for any covered entity to commit 

13 the acts prohibited in paragraph (1), regardless of 

14 specific agreements between entities or consumers. 

15 (b) REGULATIONS.— 

16 (1) IN GENERAL.—Subject to paragraph (2), 

17 not later than 2 years after the date of enactment 

18 of this Act, the Commission shall, in consultation 

19 with the Director of the National Institute of Stand20 ards and Technology, the Director of the National 

21 Artificial Intelligence Initiative, the Director of the 

22 Office of Science and Technology Policy, and other 

23 relevant stakeholders, including standards bodies, 

24 private industry, academia, technology experts, and 

25 advocates for civil rights, consumers, and impacted 

26 communities, promulgate regulations, in accordance 


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1 with section 553 of title 5, United States Code, 

2 that— 

3 (A) require each covered entity to perform 

4 impact assessment of any— 

5 (i) deployed automated decision sys6 tem that was developed for implementation 

7 or use, or that the covered entity reason8 ably expects to be implemented or used, in 

9 an augmented critical decision process by 

10 any person, partnership, or corporation 

11 that meets the requirements described in 

12 section 2(7)(A)(i); and 

13 (ii) augmented critical decision proc14 ess, both prior to and after deployment by 

15 the covered entity; 

16 (B) require each covered entity to maintain 

17 documentation of any impact assessment per18 formed under subparagraph (A), including the 

19 applicable information described in section 4(a) 

20 for 3 years longer than the duration of time for 

21 which the automated decision system or aug22 mented critical decision process is deployed; 

23 (C) require each person, partnership, or 

24 corporation that meets the requirements de25 scribed in section 2(7)(A)(i) to disclose their 


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1 status as a covered entity to any person, part2 nership, or corporation that sells, licenses, or 

3 otherwise provides through a commercial rela4 tionship any automated decision system de5 ployed by the covered entity in an automated 

6 decision system or augmented critical decision 

7 process; 

8 (D) require each covered entity to submit 

9 to the Commission, on an annual basis, a sum10 mary report for ongoing impact assessment of 

11 any deployed automated decision system or aug12 mented critical decision process; 

13 (E) require each covered entity to submit 

14 an initial summary report to the Commission 

15 for any new automated decision system or aug16 mented critical decision process prior to its de17 ployment by the covered entity; 

18 (F) allow any person, partnership, or cor19 poration over which the Commission has juris20 diction under section 5(a)(2) of the Federal 

21 Trade Commission Act (15 U.S.C. 45(a)(2)) 

22 that deploys any automated decision system or 

23 augmented critical decision process, but is not 

24 a covered entity, to submit to the Commission 

25 a summary report for any impact assessment 


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1 performed with respect to such system or proc2 ess; 

3 (G) require each covered entity, in per4 forming the impact assessment described in 

5 subparagraph (A), to the extent possible, to 

6 meaningfully consult (including through 

7 participatory design, independent auditing, or 

8 soliciting or incorporating feedback) with rel9 evant internal stakeholders (such as employees, 

10 ethics teams, and responsible technology teams) 

11 and independent external stakeholders (such as 

12 representatives of and advocates for impacted 

13 groups, civil society and advocates, and tech14 nology experts) as frequently as necessary; 

15 (H) require each covered entity to attempt 

16 to eliminate or mitigate, in a timely manner, 

17 any impact made by an augmented critical deci18 sion process that demonstrates a likely material 

19 negative impact that has legal or similarly sig20 nificant effects on a consumer’s life; 

21 (I) establish definitions for— 

22 (i) what constitutes ‘‘access to or the 

23 cost, terms, or availability of’’ with respect 

24 to a critical decision; 


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1 (ii) what constitutes ‘‘possession’’, 

2 ‘‘management’’, ‘‘modification’’, and ‘‘con3 trol’’ with respect to identifying informa4 tion; 

5 (iii) the different categories of third6 party decision recipients that a covered en7 tity must document under section 5(1)(H); 

8 and 

9 (iv) any of the services, programs, or 

10 opportunities described in subparagraphs 

11 (A) through (I) of section 2(8) for the pur12 pose of informing consumers, covered enti13 ties, and regulators, as the Commission 

14 deems necessary; 

15 (J) establish guidelines for any person, 

16 partnership, or corporation to calculate the 

17 number of consumers, households, or consumer 

18 devices for which the person, partnership, or 

19 corporation possesses, manages, modifies, or 

20 controls identifying information for the purpose 

21 of determining covered entity status; 

22 (K) establish guidelines for a covered enti23 ty to prioritize different automated decision sys24 tems and augmented critical decision processes 


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1 deployed by the covered entity for performing 

2 impact assessment; and 

3 (L) establish a required format for any 

4 summary report, as described in subparagraphs 

5 (D), (E), and (F), to ensure that such reports 

6 are submitted in an accessible and machine7 readable format. 

8 (2) CONSIDERATIONS.—In promulgating the 

9 regulations under paragraph (1), the Commission— 

10 (A) shall take into consideration— 

11 (i) that certain assessment or docu12 mentation of an automated decision system 

13 or augmented critical decision process may 

14 only be possible at particular stages of the 

15 development and deployment of such sys16 tem or process or may be limited or not 

17 possible based on the availability of certain 

18 types of information or data or the nature 

19 of the relationship between the covered en20 tity and consumers; 

21 (ii) the duration of time between sum22 mary report submissions and the timeliness 

23 of the reported information; 

24 (iii) the administrative burden placed 

25 on the Commission and the covered entity; 


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1 (iv) the benefits of standardizing and 

2 structuring summary reports for compara3 tive analysis compared with the benefits of 

4 less-structured narrative reports to provide 

5 detail and flexibility in reporting; 

6 (v) that summary reports submitted 

7 by different covered entities may contain 

8 different fields according to the require9 ments established by the Commission, and 

10 the Commission may allow or require sub11 mission of incomplete reports; 

12 (vi) that existing data privacy and 

13 other regulations may inhibit a covered en14 tity from storing or sharing certain infor15 mation; and 

16 (vii) that a covered entity may require 

17 information from other persons, partner18 ships, or corporations that develop any 

19 automated decision system deployed in an 

20 automated decision system or augmented 

21 critical decision process by the covered en22 tity for the purpose of performing impact 

23 assessment; and 


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1 (B) may develop specific requirements for 

2 impact assessments and summary reports for 

3 particular— 

4 (i) categories of critical decisions, as 

5 described in subparagraphs (A) through (I) 

6 of section 2(8) or any subcategory devel7 oped by the Commission; and 

8 (ii) stages of development and deploy9 ment of an automated decision system or 

10 augmented critical decision process. 

11 (3) EFFECTIVE DATE.—The regulations de12 scribed in paragraph (1) shall take effect on the 

13 date that is 2 years after such regulations are pro14 mulgated. 

15 SEC. 4. REQUIREMENTS FOR COVERED ENTITY IMPACT AS16 SESSMENT. 

17 (a) REQUIREMENTS FOR IMPACT ASSESSMENT.—In 

18 performing any impact assessment required under section 

19 3(b)(1) for an automated decision system or augmented 

20 critical decision process, a covered entity shall do the fol21 lowing, to the extent possible, as applicable to such cov22 ered entity as determined by the Commission: 

23 (1) In the case of a new augmented critical de24 cision process, evaluate any previously existing crit25 ical decision-making process used for the same critVerDate Sep 11 2014 00:26 Sep 26, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H5628.IH H5628

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1 ical decision prior to the deployment of the new aug2 mented critical decision process, along with any re3 lated documentation or information, such as— 

4 (A) a description of the baseline process 

5 being enhanced or replaced by the augmented 

6 critical decision process; 

7 (B) any known harm, shortcoming, failure 

8 case, or material negative impact on consumers 

9 of the previously existing process used to make 

10 the critical decision; 

11 (C) the intended benefits of and need for 

12 the augmented critical decision process; and 

13 (D) the intended purpose of the automated 

14 decision system or augmented critical decision 

15 process. 

16 (2) Identify and describe any consultation with 

17 relevant stakeholders as required by section 

18 3(b)(1)(G), including by documenting— 

19 (A) the points of contact for the stake20 holders who were consulted; 

21 (B) the date of any such consultation; and 

22 (C) information about the terms and proc23 ess of the consultation, such as— 


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1 (i) the existence and nature of any 

2 legal or financial agreement between the 

3 stakeholders and the covered entity; 

4 (ii) any data, system, design, scenario, 

5 or other document or material the stake6 holder interacted with; and 

7 (iii) any recommendations made by 

8 the stakeholders that were used to modify 

9 the development or deployment of the auto10 mated decision system or augmented crit11 ical decision process, as well as any rec12 ommendations not used and the rationale 

13 for such nonuse. 

14 (3) In accordance with any relevant National 

15 Institute of Standards and Technology or other Fed16 eral Government best practices and standards, per17 form ongoing testing and evaluation of the privacy 

18 risks and privacy-enhancing measures of the auto19 mated decision system or augmented critical decision 

20 process, such as— 

21 (A) assessing and documenting the data 

22 minimization practices of such system or proc23 ess and the duration for which the relevant 

24 identifying information and any resulting crit25 ical decision is stored; 


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1 (B) assessing the information security 

2 measures in place with respect to such system 

3 or process, including any use of privacy-enhanc4 ing technology such as federated learning, dif5 ferential privacy, secure multi-party computa6 tion, de-identification, or secure data enclaves 

7 based on the level of risk; and 

8 (C) assessing and documenting the current 

9 and potential future or downstream positive and 

10 negative impacts of such system or process on 

11 the privacy, safety, or security of consumers 

12 and their identifying information. 

13 (4) Perform ongoing testing and evaluation of 

14 the current and historical performance of the auto15 mated decision system or augmented critical decision 

16 process using measures such as benchmarking 

17 datasets, representative examples from the covered 

18 entity’s historical data, and other standards, includ19 ing by documenting— 

20 (A) a description of what is deemed suc21 cessful performance and the methods and tech22 nical and business metrics used by the covered 

23 entity to assess performance; 

24 (B) a review of the performance of such 

25 system or process under test conditions or an 


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1 explanation of why such performance testing 

2 was not conducted; 

3 (C) a review of the performance of such 

4 system or process under deployed conditions or 

5 an explanation of why performance was not re6 viewed under deployed conditions; 

7 (D) a comparison of the performance of 

8 such system or process under deployed condi9 tions to test conditions or an explanation of 

10 why such a comparison was not possible; 

11 (E) an evaluation of any differential per12 formance associated with consumers’ race, 

13 color, sex, gender, age, disability, religion, fam14 ily status, socioeconomic status, or veteran sta15 tus, and any other characteristics the Commis16 sion deems appropriate (including any combina17 tion of such characteristics) for which the cov18 ered entity has information, including a descrip19 tion of the methodology for such evaluation and 

20 information about and documentation of the 

21 methods used to identify such characteristics in 

22 the data (such as through the use of proxy 

23 data, including ZIP Codes); and 

24 (F) if any subpopulations were used for 

25 testing and evaluation, a description of which 


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1 subpopulations were used and how and why 

2 such subpopulations were determined to be of 

3 relevance for the testing and evaluation. 

4 (5) Support and perform ongoing training and 

5 education for all relevant employees, contractors, or 

6 other agents regarding any documented material 

7 negative impacts on consumers from similar auto8 mated decision systems or augmented critical deci9 sion processes and any improved methods of devel10 oping or performing an impact assessment for such 

11 system or process based on industry best practices 

12 and relevant proposals and publications from ex13 perts, such as advocates, journalists, and academics. 

14 (6) Assess the need for and possible develop15 ment of any guard rail for or limitation on certain 

16 uses or applications of the automated decision sys17 tem or augmented critical decision process, including 

18 whether such uses or applications ought to be pro19 hibited or otherwise limited through any terms of 

20 use, licensing agreement, or other legal agreement 

21 between entities. 

22 (7) Maintain and keep updated documentation 

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1 sion system or augmented critical decision process, 

2 including— 

3 (A) how and when such data or other 

4 input information was sourced and, if applica5 ble, licensed, including information such as— 

6 (i) metadata and information about 

7 the structure and type of data or other 

8 input information, such as the file type, 

9 the date of the file creation or modifica10 tion, and a description of data fields; 

11 (ii) an explanation of the methodology 

12 by which the covered entity collected, in13 ferred, or obtained the data or other input 

14 information and, if applicable, labeled, cat15 egorized, sorted, or clustered such data or 

16 other input information, including whether 

17 such data or other input information was 

18 labeled, categorized, sorted, or clustered 

19 prior to being collected, inferred, or ob20 tained by the covered entity; and 

21 (iii) whether and how consumers pro22 vided informed consent for the inclusion 

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1 tions stipulated on such inclusion or fur2 ther use; 

3 (B) why such data or other input informa4 tion was used and what alternatives were ex5 plored; and 

6 (C) other information about the data or 

7 other input information, such as— 

8 (i) the representativeness of the 

9 dataset and how this factor was measured, 

10 including any assumption about the dis11 tribution of the population on which the 

12 augmented critical decision process is de13 ployed; and 

14 (ii) the quality of the data, how the 

15 quality was evaluated, and any measure 

16 taken to normalize, correct, or clean the 

17 data. 

18 (8) Evaluate the rights of consumers, such as— 

19 (A) by assessing the extent to which the 

20 covered entity provides consumers with— 

21 (i) clear notice that such system or 

22 process will be used; and 

23 (ii) a mechanism for opting out of 

24 such use; 


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1 (B) by assessing the transparency and 

2 explainability of such system or process and the 

3 degree to which a consumer may contest, cor4 rect, or appeal a decision or opt out of such 

5 system or process, including— 

6 (i) the information available to con7 sumers or representatives or agents of con8 sumers about the system or process, such 

9 as any relevant factors that contribute to 

10 a particular decision, including an expla11 nation of which contributing factors, if 

12 changed, would cause the system or proc13 ess to reach a different decision, and how 

14 such consumer, representative, or agent 

15 can access such information; 

16 (ii) documentation of any complaint, 

17 dispute, correction, appeal, or opt-out re18 quest submitted to the covered entity by a 

19 consumer with respect to such system or 

20 process; and 

21 (iii) the process and outcome of any 

22 remediation measure taken by the covered 

23 entity to address the concerns of or harms 

24 to consumers; and 


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1 (C) by describing the extent to which any 

2 third-party decision recipient receives a copy of 

3 or has access to the results of such system or 

4 process and the category of such third-party de5 cision recipient, as defined by the Commission 

6 in section 3(b)(1)(I)(iii). 

7 (9) Identify any likely material negative impact 

8 of the automated decision system or augmented crit9 ical decision process on consumers and assess any 

10 applicable mitigation strategy, such as by— 

11 (A) identifying and measuring any likely 

12 material negative impact of the system or proc13 ess on consumers, including documentation of 

14 the steps taken to identify and measure such 

15 impact; 

16 (B) documenting any steps taken to elimi17 nate or reasonably mitigate any likely material 

18 negative impact identified, including steps such 

19 as removing the system or process from the 

20 market or terminating its development; 

21 (C) with respect to the likely material neg22 ative impacts identified, documenting which 

23 such impacts were left unmitigated and the ra24 tionale for the inaction, including details about 

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1 terest and why such interest cannot be satisfied 

2 by other means (such as where there is an 

3 equal, zero-sum trade-off between impacts on 2 

4 or more consumers or where the required miti5 gating action would violate civil rights or other 

6 laws); and 

7 (D) documenting standard protocols or 

8 practices used to identify, measure, mitigate, or 

9 eliminate any likely material negative impact on 

10 consumers and how relevant teams or staff are 

11 informed of and trained about such protocols or 

12 practices. 

13 (10) Describe any ongoing documentation of 

14 the development and deployment process with re15 spect to the automated decision system or aug16 mented critical decision process, including informa17 tion such as— 

18 (A) the date of any testing, deployment, li19 censure, or other significant milestones; and 

20 (B) points of contact for any team, busi21 ness unit, or similar internal stakeholder that 

22 was involved. 

23 (11) Identify any capabilities, tools, standards, 

24 datasets, security protocols, improvements to stake25 holder engagement, or other resources that may be 


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1 necessary or beneficial to improving the automated 

2 decision system, augmented critical decision process, 

3 or the impact assessment of such system or process, 

4 in areas such as— 

5 (A) performance, including accuracy, 

6 robustness, and reliability; 

7 (B) fairness, including bias and non8 discrimination; 

9 (C) transparency, explainability, 

10 contestability, and opportunity for recourse; 

11 (D) privacy and security; 

12 (E) personal and public safety; 

13 (F) efficiency and timeliness; 

14 (G) cost; or 

15 (H) any other area determined appropriate 

16 by the Commission. 

17 (12) Document any of the impact assessment 

18 requirements described in paragraphs (1) through 

19 (11) that were attempted but were not possible to 

20 comply with because they were infeasible, as well as 

21 the corresponding rationale for not being able to 

22 comply with such requirements, which may in23 clude— 

24 (A) the absence of certain information 

25 about an automated decision system developed 


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1 by other persons, partnerships, and corpora2 tions; 

3 (B) the absence of certain information 

4 about how clients, customers, licensees, part5 ners, and other persons, partnerships, or cor6 porations are deploying an automated decision 

7 system in their augmented critical decision 

8 processes; 

9 (C) a lack of demographic or other data 

10 required to assess differential performance be11 cause such data is too sensitive to collect, infer, 

12 or store; or 

13 (D) a lack of certain capabilities, including 

14 technological innovations, that would be nec15 essary to conduct such requirements. 

16 (13) Perform and document any other ongoing 

17 study or evaluation determined appropriate by the 

18 Commission. 

19 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

20 should be construed to limit any covered entity from add21 ing other criteria, procedures, or technologies to improve 

22 the performance of an impact assessment of their auto23 mated decision system or augmented critical decision proc24 ess. 


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1 (c) NONDISCLOSURE OF IMPACT ASSESSMENT.— 

2 Nothing in this Act should be construed to require a cov3 ered entity to share with or otherwise disclose to the Com4 mission or the public any information contained in an im5 pact assessment performed in accordance with this Act, 

6 except for any information contained in the summary re7 port required under subparagraph (D) or (E) of section 

8 3(b)(1). 

9 SEC. 5. REQUIREMENTS FOR SUMMARY REPORTS TO THE 

10 COMMISSION. 

11 The summary report that a covered entity is required 

12 to submit under subparagraph (D) or (E) of section 

13 3(b)(1) for any automated decision system or augmented 

14 critical decision process shall, to the extent possible— 

15 (1) contain information from the impact assess16 ment of such system or process, as applicable, in17 cluding— 

18 (A) the name, website, and point of con19 tact for the covered entity; 

20 (B) a detailed description of the specific 

21 critical decision that the augmented critical de22 cision process is intended to make, including 

23 the category of critical decision as described in 

24 subparagraphs (A) through (I) of section 2(8); 


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1 (C) the covered entity’s intended purpose 

2 for the automated decision system or aug3 mented critical decision process; 

4 (D) an identification of any stakeholders 

5 consulted by the covered entity as required by 

6 section 3(b)(1)(G) and documentation of the ex7 istence and nature of any legal agreements be8 tween the stakeholders and the covered entity; 

9 (E) documentation of the testing and eval10 uation of the automated decision system or aug11 mented critical decision process, including— 

12 (i) the methods and technical and 

13 business metrics used to assess the per14 formance of such system or process and a 

15 description of what metrics are deemed 

16 successful performance; 

17 (ii) the results of any assessment of 

18 the performance of such system or process 

19 and a comparison of the results of any as20 sessment under test and deployed condi21 tions; and 

22 (iii) an evaluation of any differential 

23 performance of such system or process as24 sessed during the impact assessment; 


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1 (F) any publicly stated guard rail for or 

2 limitation on certain uses or applications of the 

3 automated decision system or augmented crit4 ical decision process, including whether such 

5 uses or applications ought to be prohibited or 

6 otherwise limited through any terms of use, li7 censing agreement, or other legal agreement be8 tween entities; 

9 (G) documentation about the data or other 

10 input information used to develop, test, main11 tain, or update the automated decision system 

12 or augmented critical decision process includ13 ing— 

14 (i) how and when the covered entity 

15 sourced such data or other input informa16 tion; and 

17 (ii) why such data or other input in18 formation was used and what alternatives 

19 were explored; 

20 (H) documentation of whether and how the 

21 covered entity implements any transparency or 

22 explainability measures, including— 

23 (i) which categories of third-party de24 cision recipients receive a copy of or have 

25 access to the results of any decision or 


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1 judgment that results from such system or 

2 process; and 

3 (ii) any mechanism by which a con4 sumer may contest, correct, or appeal a de5 cision or opt out of such system or process, 

6 including the corresponding website for 

7 such mechanism, where applicable; 

8 (I) any likely material negative impact on 

9 consumers identified by the covered entity and 

10 a description of the steps taken to remediate or 

11 mitigate such impact; 

12 (J) a list of any impact assessment re13 quirements that were attempted but were not 

14 possible to comply with because they were infea15 sible, as well as the corresponding rationale for 

16 not being able to comply with such require17 ments; and 

18 (K) any additional capabilities, tools, 

19 standards, datasets, security protocols, improve20 ments to stakeholder engagement, or other re21 sources identified by an impact assessment as 

22 necessary or beneficial to improve the perform23 ance of impact assessment or the development 

24 and deployment of any automated decision sys25 tem or augmented critical decision process that 


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1 the covered entity determines appropriate to 

2 share with the Commission; 

3 (2) include, in addition to the information re4 quired under paragraph (1), any relevant additional 

5 information from section 4(a) the covered entity 

6 wishes to share with the Commission; 

7 (3) follow any format or structure requirements 

8 specified by the Commission; and 

9 (4) include additional criteria that are essential 

10 for the purpose of consumer protection, as deter11 mined by the Commission. 

12 SEC. 6. REPORTING; PUBLICLY ACCESSIBLE REPOSITORY. 

13 (a) ANNUAL REPORT.—Not later than 1 year after 

14 the effective date described in section 3(b)(3), and annu15 ally thereafter, the Commission shall publish publicly on 

16 the website of the Commission a report describing and 

17 summarizing the information from the summary reports 

18 submitted under subparagraph (D), (E), or (F) of section 

19 3(b)(1) that— 

20 (1) is accessible and machine readable in ac21 cordance with the 21st Century Integrated Digital 

22 Experience Act (44 U.S.C. 3501 note); and 

23 (2) describes broad trends, aggregated statis24 tics, and anonymized lessons learned about per25 forming impact assessments of automated decision 


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1 systems or augmented critical decision processes, for 

2 the purposes of updating guidance related to impact 

3 assessments and summary reporting, oversight, and 

4 making recommendations to other regulatory agen5 cies. 

6 (b) PUBLICLY ACCESSIBLE REPOSITORY.— 

7 (1) IN GENERAL.— 

8 (A) ESTABLISHMENT.— 

9 (i) DEVELOPMENT.—Not later than 

10 180 days after the Commission promul11 gates the regulations required under sec12 tion 3(b)(1), the Commission shall develop 

13 a publicly accessible repository designed to 

14 publish a limited subset of the information 

15 about each automated decision system and 

16 augmented critical decision process for 

17 which the Commission received a summary 

18 report under subparagraph (D), (E), or 

19 (F) of section 3(b)(1) in order to facilitate 

20 consumer protection. 

21 (ii) PUBLICATION.—Not later than 

22 180 days after the effective date described 

23 in section 3(b)(3), the Commission shall 

24 make the repository publicly accessible. 


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1 (iii) UPDATES.—The Commission 

2 shall update the repository on a quarterly 

3 basis. 

4 (B) PURPOSE.—The purposes of the repos5 itory established under subparagraph (A) are— 

6 (i) to inform consumers about the use 

7 of automated decision systems and aug8 mented critical decision processes; 

9 (ii) to allow researchers and advocates 

10 to study the use of automated decision sys11 tems and augmented critical decision proc12 esses; and 

13 (iii) to ensure compliance with the re14 quirements of this Act. 

15 (C) CONSIDERATIONS.—In establishing the 

16 repository under subparagraph (A), the Com17 mission shall consider— 

18 (i) how to provide consumers with 

19 pertinent information regarding augmented 

20 critical decision processes while minimizing 

21 any potential commercial risk to any cov22 ered entity of providing such information; 

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1 cision systems deployed in the augmented 

2 critical decision processes; 

3 (iii) how to document information, 

4 when applicable, about how to contest or 

5 seek recourse for a critical decision in a 

6 manner that is readily accessible by the 

7 consumer; and 

8 (iv) how to streamline the submission 

9 of summary reports under subparagraph 

10 (D), (E), or (F) of section 3(b)(1) to allow 

11 the Commission to efficiently populate in12 formation into the repository to minimize 

13 or eliminate any burden on the Commis14 sion. 

15 (D) REQUIREMENTS.—The Commission 

16 shall design the repository established under 

17 subparagraph (A) to— 

18 (i) be publicly available and easily dis19 coverable on the website of the Commis20 sion; 

21 (ii) allow users to sort and search the 

22 repository by multiple characteristics (such 

23 as by covered entity, date reported, or cat24 egory of critical decision) simultaneously; 


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1 (iii) allow users to make a copy of or 

2 download the information obtained from 

3 the repository, including any subsets of in4 formation obtained by sorting or searching 

5 as described in clause (ii), in accordance 

6 with current guidance from the Office of 

7 Management and Budget, such as the 

8 Open, Public, Electronic, and Necessary 

9 Government Data Act (44 U.S.C. 101 

10 note); 

11 (iv) be in accordance with user experi12 ence and accessibility best practices such 

13 as those described in the 21st Century In14 tegrated Digital Experience Act (44 U.S.C. 

15 3501 note); 

16 (v) include a limited subset of infor17 mation from the summary reports, as ap18 plicable, under subparagraph (D), (E), or 

19 (F) of section 3(b)(1) that includes— 

20 (I) the identity of the covered en21 tity that submitted such summary re22 port, including any link to the website 

23 of the covered entity; 

24 (II) the specific critical decision 

25 that the augmented critical decision 


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•HR 5628 IH

1 process makes, along with the cat2 egory of the critical decision; 

3 (III) any publicly stated prohib4 ited applications of the automated de5 cision system or augmented critical 

6 decision process, including whether 

7 such prohibition is enforced through 

8 any terms of use, licensing agreement, 

9 or other legal agreement between enti10 ties; 

11 (IV) to the extent possible, the 

12 sources of any data used to develop, 

13 test, maintain, or update the auto14 mated decision system or augmented 

15 critical decision process; 

16 (V) to the extent possible, the 

17 type of technical and business metrics 

18 used to assess the performance of the 

19 augmented critical decision process 

20 when deployed; and 

21 (VI) the link to any web page 

22 with instructions or other information 

23 related to a mechanism by which a 

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1 mated decision system or augmented 

2 critical decision process; and 

3 (vi) include information about design, 

4 use, and maintenance of the repository, in5 cluding— 

6 (I) how frequently the repository 

7 is updated; 

8 (II) the date of the most recent 

9 such update; 

10 (III) the types of information 

11 from the summary reports submitted 

12 under subparagraph (D), (E), or (F) 

13 of section 3(b)(1) that are and are not 

14 included in the repository; and 

15 (IV) any other information about 

16 the design, use, and maintenance the 

17 Commission determines is— 

18 (aa) relevant to consumers 

19 and researchers; or 

20 (bb) essential for consumer 

21 education and recourse. 

22 (2) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated to the Com24 mission such sums as are necessary to carry out this 

25 subsection. 


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1 SEC. 7. GUIDANCE AND TECHNICAL ASSISTANCE; OTHER 

2 REQUIREMENTS. 

3 (a) GUIDANCE AND TECHNICAL ASSISTANCE FROM

4 THE COMMISSION.— 

5 (1) IN GENERAL.—The Commission shall pub6 lish guidance on how to meet the requirements of 

7 sections 4 and 5, including resources such as docu8 mentation templates and guides for meaningful con9 sultation, that is developed by the Commission after 

10 consultation with the Director of the National Insti11 tute of Standards and Technology, the Director of 

12 the National Artificial Intelligence Initiative, the Di13 rector of the Office of Science and Technology Pol14 icy, and other relevant stakeholders, including stand15 ards bodies, private industry, academia, technology 

16 experts, and advocates for civil rights, consumers, 

17 and impacted communities. 

18 (2) ASSISTANCE IN DETERMINING COVERED

19 ENTITY STATUS.—In addition to the guidance re20 quired under paragraph (1), the Commission shall— 

21 (A) issue guidance and training materials 

22 to assist persons, partnerships, and corpora23 tions in evaluating whether they are a covered 

24 entity; and 

25 (B) regularly update such guidance and 

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1 back or questions from covered entities, experts, 

2 or other relevant stakeholders. 

3 (b) OTHER REQUIREMENTS.— 

4 (1) PUBLICATION.—Nothing in this Act shall 

5 be construed to limit a covered entity from publi6 cizing any documentation of the impact assessment 

7 maintained under section 3(b)(1)(B), including in8 formation beyond what is required to be submitted 

9 in a summary report under subparagraph (D) or (E) 

10 of section 3(b)(1), unless such publication would vio11 late the privacy of any consumer. 

12 (2) PERIODIC REVIEW OF REGULATIONS.—The 

13 Commission shall review the regulations promul14 gated under section 3(b) not less than once every 5 

15 years and update such regulations as appropriate. 

16 (3) REVIEW BY NIST AND OSTP.—The Commis17 sion shall make available, in a private and secure 

18 manner, to the Director of the National Institute of 

19 Standards and Technology, the Director of the Of20 fice of Science and Technology Policy, and the head 

21 of any Federal agency with relevant regulatory juris22 diction over an augmented critical decision process 

23 any summary report submitted under subparagraph 

24 (D), (E), or (F) of section 3(b)(1) for review in 

25 order to develop future standards or regulations. 


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1 SEC. 8. RESOURCES AND AUTHORITIES. 

2 (a) BUREAU OF TECHNOLOGY.— 

3 (1) ESTABLISHMENT.— 

4 (A) IN GENERAL.—There is established 

5 within the Commission the Bureau of Tech6 nology (in this subsection referred to as the 

7 ‘‘Bureau’’). 

8 (B) DUTIES.—The Bureau shall engage in 

9 activities that include: 

10 (i) Aiding or advising the Commission 

11 with respect to the technological aspects of 

12 the functions of the Commission, includ13 ing— 

14 (I) preparing, conducting, facili15 tating, managing, or otherwise ena16 bling studies, workshops, audits, com17 munity participation opportunities, or 

18 other similar activities; and 

19 (II) any other assistance deemed 

20 appropriate by the Commission or 

21 Chair. 

22 (ii) Aiding or advising the Commis23 sion with respect to the enforcement of this 

24 Act. 

25 (iii) Providing technical assistance to 

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1 mission with respect to the investigation 

2 and trial of cases. 

3 (2) CHIEF TECHNOLOGIST.—The Bureau shall 

4 be headed by a Chief Technologist. 

5 (3) STAFF.— 

6 (A) APPOINTMENTS.— 

7 (i) IN GENERAL.—Subject to subpara8 graph (B), the Chair may, without regard 

9 to the civil service laws (including regula10 tions), appoint personnel with experience 

11 in fields such as management, technology, 

12 digital and product design, user experience, 

13 information security, civil rights, tech14 nology policy, privacy policy, humanities 

15 and social sciences, product management, 

16 software engineering, machine learning, 

17 statistics, or other related fields to enable 

18 the Bureau to perform its duties. 

19 (ii) MINIMUM APPOINTMENTS.—Not 

20 later than 2 years after the date of enact21 ment of this Act, the Chair shall appoint 

22 not less than 50 personnel. 

23 (B) EXCEPTED SERVICE.—The personnel 

24 appointed in accordance with subparagraph (A) 

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1 tion 213.3102(r) of title 5, Code of Federal 

2 Regulations. 

3 (4) AUTHORIZATION OF APPROPRIATIONS.— 

4 There are authorized to be appropriated to the Com5 mission such sums as are necessary to carry out this 

6 subsection. 

7 (b) ADDITIONAL PERSONNEL IN THE BUREAU OF

8 CONSUMER PROTECTION.— 

9 (1) ADDITIONAL PERSONNEL.—Notwith10 standing any other provision of law, the Chair may, 

11 without regard to the civil service laws (including 

12 regulations), appoint 25 additional personnel to the 

13 Division of Enforcement of the Bureau of Consumer 

14 Protection. 

15 (2) AUTHORIZATION OF APPROPRIATIONS.— 

16 There are authorized to be appropriated to the Com17 mission such sums as are necessary to carry out this 

18 subsection. 

19 (c) ESTABLISHMENT OF AGREEMENTS OF COOPERA20 TION.—The Commission shall negotiate agreements of co21 operation, as needed, with any relevant Federal agency 

22 with respect to information sharing and enforcement ac23 tions taken regarding the development or deployment of 

24 an automated decision system to make a critical decision 

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1 ments shall include procedures for determining which 

2 agency shall file an action and providing notice to the non3 filing agency, where feasible, prior to initiating a civil ac4 tion to enforce any Federal law within such agencies’ ju5 risdictions regarding the development or deployment of an 

6 automated decision system to make a critical decision or 

7 of an augmented critical decision process by a covered en8 tity. 

9 SEC. 9. ENFORCEMENT. 

10 (a) ENFORCEMENT BY THE COMMISSION.— 

11 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC12 TICES.—A violation of this Act or a regulation pro13 mulgated thereunder shall be treated as a violation 

14 of a rule defining an unfair or deceptive act or prac15 tice under section 18(a)(1)(B) of the Federal Trade 

16 Commission Act (15 U.S.C. 57a(a)(1)(B)). 

17 (2) POWERS OF THE COMMISSION.— 

18 (A) IN GENERAL.—The Commission shall 

19 enforce this Act and the regulations promul20 gated under this Act in the same manner, by 

21 the same means, and with the same jurisdic22 tion, powers, and duties as though all applicable 

23 terms and provisions of the Federal Trade 

24 Commission Act (15 U.S.C. 41 et seq.) were in25 corporated into and made a part of this Act. 


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1 (B) PRIVILEGES AND IMMUNITIES.—Any 

2 person who violates this Act or a regulation 

3 promulgated thereunder shall be subject to the 

4 penalties and entitled to the privileges and im5 munities provided in the Federal Trade Com6 mission Act (15 U.S.C. 41 et seq.). 

7 (C) AUTHORITY PRESERVED.—Nothing in 

8 this Act shall be construed to limit the author9 ity of the Commission under any other provi10 sion of law. 

11 (D) RULEMAKING.—The Commission shall 

12 promulgate in accordance with section 553 of 

13 title 5, United States Code, such additional 

14 rules as may be necessary to carry out this Act. 

15 (b) ENFORCEMENT BY STATES.— 

16 (1) IN GENERAL.—If the attorney general of a 

17 State has reason to believe that an interest of the 

18 residents of the State has been or is being threat19 ened or adversely affected by a practice that violates 

20 this Act or a regulation promulgated thereunder, the 

21 attorney general of the State may, as parens patriae, 

22 bring a civil action on behalf of the residents of the 

23 State in an appropriate district court of the United 

24 States to obtain appropriate relief. 

25 (2) RIGHTS OF COMMISSION.— 


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1 (A) NOTICE TO COMMISSION.— 

2 (i) IN GENERAL.—Except as provided 

3 in clause (iii), the attorney general of a 

4 State, before initiating a civil action under 

5 paragraph (1), shall provide written notifi6 cation to the Commission that the attorney 

7 general intends to bring such civil action. 

8 (ii) CONTENTS.—The notification re9 quired under clause (i) shall include a copy 

10 of the complaint to be filed to initiate the 

11 civil action. 

12 (iii) EXCEPTION.—If it is not feasible 

13 for the attorney general of a State to pro14 vide the notification required under clause 

15 (i) before initiating a civil action under 

16 paragraph (1), the attorney general shall 

17 notify the Commission immediately upon 

18 instituting the civil action. 

19 (B) INTERVENTION BY COMMISSION.—The 

20 Commission may— 

21 (i) intervene in any civil action 

22 brought by the attorney general of a State 

23 under paragraph (1); and 

24 (ii) upon intervening— 


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1 (I) be heard on all matters aris2 ing in the civil action; and 

3 (II) file petitions for appeal of a 

4 decision in the civil action. 

5 (3) INVESTIGATORY POWERS.—Nothing in this 

6 subsection may be construed to prevent the attorney 

7 general of a State from exercising the powers con8 ferred on the attorney general by the laws of the 

9 State to conduct investigations, to administer oaths 

10 or affirmations, or to compel the attendance of wit11 nesses or the production of documentary or other 

12 evidence. 

13 (4) VENUE; SERVICE OF PROCESS.— 

14 (A) VENUE.—Any action brought under 

15 paragraph (1) may be brought in— 

16 (i) the district court of the United 

17 States that meets applicable requirements 

18 relating to venue under section 1391 of 

19 title 28, United States Code; or 

20 (ii) another court of competent juris21 diction. 

22 (B) SERVICE OF PROCESS.—In an action 

23 brought under paragraph (1), process may be 

24 served in any district in which— 


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1 (i) the defendant is an inhabitant, 

2 may be found, or transacts business; or 

3 (ii) venue is proper under section 

4 1391 of title 28, United States Code. 

5 (5) ACTIONS BY OTHER STATE OFFICIALS.— 

6 (A) IN GENERAL.—In addition to a civil 

7 action brought by an attorney general under 

8 paragraph (1), any other officer of a State who 

9 is authorized by the State to do so may bring 

10 a civil action under paragraph (1), subject to 

11 the same requirements and limitations that 

12 apply under this subsection to civil actions 

13 brought by attorneys general. 

14 (B) SAVINGS PROVISION.—Nothing in this 

15 subsection may be construed to prohibit an au16 thorized official of a State from initiating or 

17 continuing any proceeding in a court of the 

18 State for a violation of any civil or criminal law 

19 of the State. 

20 SEC. 10. COORDINATION. 

21 In carrying out this Act, the Commission shall coordi22 nate with any appropriate Federal agency or State regu23 lator to promote consistent regulatory treatment of auto24 mated decision systems and augmented critical decision 

25 processes. 


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1 SEC. 11. NO PREEMPTION. 

2 Nothing in this Act may be construed to preempt any 

3 State, tribal, city, or local law, regulation, or ordinance. 

Æ 


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