SB 3261

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Full Text of SB3261
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	SB3261 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3261
Introduced 2/3/2026, by Sen. Mary Edly-Allen
SYNOPSIS AS INTRODUCED:
New Act
Creates the Artificial Intelligence Public Safety and Child Protection Transparency Act. Provides that a frontier artificial intelligence model developer or large chatbot provider shall write, implement, comply with, and clearly and conspicuously publish on its website a public safety and child protection plan. Provides that the Attorney General shall establish a mechanism to be used by a large frontier developer, a large chatbot provider, or a member of the public to report a safety incident related to specified artificial intelligence models or chatbots. Sets forth provisions concerning the protection of whistleblowers; third party audits of large frontier developers; and civil penalties. Provides for rulemaking by the Attorney General. Effective January 1, 2027.
LRB104 19179 SPS 32624 b
A BILL FOR
		SB3261		LRB104 19179 SPS 32624 b
1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Artificial Intelligence Public Safety and Child Protection
6Transparency Act.
7    Section 5. Findings. The General Assembly finds and
8declares:
9    (a) Artificial intelligence, including new advances in
10foundation models, has the potential to catalyze innovation
11and the rapid development of a wide range of benefits for
12Illinoisans and the Illinois economy, including advances in
13medicine, agriculture, and climate science, and to push the
14bounds of human creativity and capacity.
15    (b) Targeted interventions to support effective artificial
16intelligence governance should balance the technology's
17benefits and the potential for material risks.
18    (c) In building a robust and transparent evidence
19environment, policymakers can align incentives to
20simultaneously protect consumers, leverage industry expertise,
21and recognize leading safety practices.
22    (d) As industry actors conduct internal research on their
23technologies' impacts, public trust in these technologies
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1would significantly benefit from access to information
2regarding, and increased awareness of, frontier artificial
3intelligence capabilities.
4    (e) Greater transparency can also advance accountability,
5competition, and public trust.
6    (f) Whistleblower protections and public-facing
7information sharing are key instruments to increase
8transparency.
9    (g) Incident reporting systems enable monitoring of the
10post-deployment impacts of artificial intelligence.
11    (h) Unless they are developed with careful diligence and
12reasonable precaution, there is concern that advanced
13artificial intelligence systems could have capabilities that
14pose catastrophic risks from both malicious uses and
15malfunctions, including artificial intelligence-enabled
16hacking, biological attacks, and loss of control.
17    (i) With the frontier of artificial intelligence rapidly
18evolving, there is a need for legislation to track the
19frontier of artificial intelligence research and alert
20policymakers and the public to serious risks and harms from
21the most advanced artificial intelligence systems, while
22avoiding burdening smaller companies behind the frontier.
23    (j) While the major artificial intelligence developers
24have already voluntarily established the creation, use, and
25publication of frontier artificial intelligence frameworks as
26an industry best practice, not all developers have provided
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1reporting that is consistent and sufficient to ensure
2necessary transparency and protection of the public.
3Mandatory, standardized, and objective reporting by frontier
4developers is required to provide the government and the
5public with timely and accurate information.
6    (k) Timely reporting of critical safety incidents to the
7government is essential to ensure that public authorities are
8promptly informed of ongoing and emerging risks to public
9safety. This reporting enables the government to monitor,
10assess, and respond effectively if the advanced capabilities
11emerge in frontier artificial intelligence models that may
12pose a threat to the public.
13    (l) In the future, foundation models developed by smaller
14companies or that are behind the frontier may pose significant
15catastrophic risk, and additional legislation may be needed at
16that time.
17    (m) It is the intent of the General Assembly to create more
18transparency, but collective safety will depend in part on
19frontier developers taking due care in their development and
20deployment of frontier models proportional to the scale of the
21foreseeable risks.
22    Section 10. Definitions. As used in this Act:
23    "Affiliate" means a person controlling, controlled by, or
24under common control with a specified person, directly or
25indirectly, through one or more intermediaries.
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1    "Artificial intelligence model" means an engineered or
2machine-based system that varies in its level of autonomy and
3that can, for explicit or implicit objectives, infer from the
4input it receives how to generate outputs that can influence
5physical or virtual environments.
6    "Catastrophic risk" means a foreseeable and material risk
7that a frontier developer's development, storage, use, or
8deployment of a frontier model will materially contribute to
9the death of, or serious injury to, more than 50 people or more
10than $1,000,000,000 in damage to, or loss of, property arising
11from a single incident involving a frontier model doing the
12following:
13        (1) providing expert-level assistance in the creation
14    or release of a chemical, biological, radiological, or
15    nuclear weapon;
16        (2) engaging in conduct with no meaningful human
17    oversight, intervention, or supervision that is either a
18    cyberattack or, if the conduct had been committed by a
19    human, would constitute the crime of murder, assault,
20    extortion, or theft, including theft by false pretense; or
21        (3) evading the control of its frontier developer or
22    user.
23    "Catastrophic risk" does not include a foreseeable and
24material risk from the following:
25        (1) information that a frontier model outputs if the
26    information is otherwise publicly accessible in a
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1    substantially similar form from a source other than a
2    foundation model;
3        (2) lawful activity of the federal government; or
4        (3) harm caused by a frontier model in combination
5    with other software if the frontier model did not
6    materially contribute to the harm.
7    "Child safety incident" means death or bodily injury to a
8minor resulting from the materialization of a child safety
9risk.
10    "Child safety risk" means a material and foreseeable risk
11that a frontier developer's foundation model, when used as
12part of a covered chatbot operated by the frontier developer,
13will engage in behavior when conversing with a minor that, if
14it had been engaged in by a human, would be deemed to
15intentionally or recklessly do the following:
16        (1) cause death or bodily injury to that minor,
17    including as a result of self-harm; or
18        (2) cause damage to mental health that constitutes
19    severe emotional distress.
20    "Covered chatbot" means a service that:
21        (1) allows an ordinary person to converse with and
22    have conversations where humanlike responses are generated
23    by a foundation model;
24        (2) is foreseeably likely to be accessed by minors;
25    and
26        (3) has at least 1,000,000 monthly active users.
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1    "Covered risk" means a catastrophic risk or a child safety
2risk.
3    "Critical safety incident" means the following:
4        (1) unauthorized access to, modification of,
5    inadvertent release of, or exfiltration of, the model
6    weights of a frontier model;
7        (2) the death of, or serious injury to, more than 50
8    people or more than $1,000,000,000 in damage to, or loss
9    of, property resulting from the materialization of a
10    catastrophic risk;
11        (3) loss of control of a frontier model that causes
12    death, bodily injury, or that demonstrates materially
13    increased catastrophic risk; or
14        (4) the use of deceptive techniques by a frontier
15    model against its frontier developer to subvert the
16    controls or monitoring of its frontier developer outside
17    of the context of an evaluation designed to elicit this
18    behavior and in a manner that demonstrates materially
19    increased catastrophic risk.
20    "Deploy" means to make a frontier model available to a
21third party for use, modification, copying, or combination
22with other software. "Deploy" does not include making a
23frontier model available to a third party for the primary
24purpose of developing or evaluating the frontier model.
25    "Employee" has the meaning set forth in the Whistleblower
26Act.
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1    "Foundation model" means an artificial intelligence model
2that is:
3        (1) trained on a broad data set;
4        (2) designed for generality of output; and
5        (3) adaptable to a wide range of distinctive tasks.
6    "Frontier developer" means a person who has trained, or
7initiated the training of, a frontier model, with respect to
8which the person has used, or intends to use, at least as much
9computing power to train the frontier model as would meet the
10technical specifications described in the definition of
11"frontier model". "Frontier developer" does not include
12accredited colleges and universities to the extent that the
13colleges and universities are engaging in academic research.
14For the purpose of this definition, if a person subsequently
15transfers full intellectual property rights of a frontier
16model to another person, including the right to resell the
17model, and retains none of those rights, then the receiving
18person shall be considered the frontier developer with respect
19to that frontier model.
20    "Frontier model" means a foundation model that was trained
21using a quantity of computing power greater than 10^26 integer
22or floating-point operations. The quantity of computing power
23described in this definition shall include computing for the
24original training run and for any subsequent fine-tuning,
25reinforcement learning, or other material modifications the
26developer applies to a preceding foundation model.
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1    "Large chatbot provider" means a provider who makes a
2covered chatbot available in this State and who, together with
3the provider's affiliates, collectively have an annual revenue
4of at least $25,000,000.
5    "Large frontier developer" means a frontier developer who,
6together with the large frontier developer's affiliates,
7collectively have an annual revenue of at least $500,000,000.
8    "Minor" means an individual younger than 18 years old.
9    "Model weight" means a numerical parameter in a frontier
10model that is adjusted through training and that helps
11determine how inputs are transformed into outputs.
12    "Property" means tangible or intangible property.
13    "Public safety and child protection plan" means a
14documented technical and organizational protocol to manage,
15assess, and mitigate covered risks.
16    "Safety incident" means a child safety incident or a
17critical safety incident.
18    Section 15. Public safety and child protection plans.
19     (a) A large frontier developer or large chatbot provider
20shall write, implement, comply with, and clearly and
21conspicuously publish on its website a public safety and child
22protection plan that describes in detail:
23        (1) For a large frontier developer only, how the large
24    frontier developer:
25            (A) defines and assesses thresholds used by the
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1        large frontier developer to identify and assess
2        whether a frontier model has capabilities that could
3        pose a catastrophic risk, which may include
4        multiple-tiered thresholds;
5            (B) applies mitigations to address the potential
6        for catastrophic risks based on the results of the
7        assessments undertaken in accordance with subparagraph
8        (A);
9            (C) reviews assessments of catastrophic risk and
10        adequacy of mitigations of catastrophic risk as part
11        of the decision to deploy a frontier model or use it
12        extensively internally;
13            (D) uses third parties to assess the potential for
14        catastrophic risks and the effectiveness of
15        mitigations of catastrophic risks;
16            (E) implements cybersecurity practices to secure
17        unreleased frontier model weights from unauthorized
18        modification or transfer by internal or external
19        parties; and
20            (F) assesses and manages catastrophic risk
21        resulting from the internal use of its frontier
22        models, including risks resulting from a frontier
23        model circumventing oversight mechanisms or being used
24        for artificial intelligence research and development
25        in a manner that could materially increase
26        catastrophic risk.
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1        (2) For a large chatbot provider only, how the large
2    chatbot provider:
3            (A) assesses potential for child safety risks;
4            (B) applies mitigations to address the potential
5        for child safety risks based on the results of the
6        assessments undertaken in accordance with subparagraph
7        (A); and
8            (C) uses third parties to assess the potential for
9        child safety risks and the effectiveness of
10        mitigations of child safety risks.
11        (3) For both large frontier developers and large
12    chatbot providers, how the large frontier developer or
13    large chatbot provider:
14            (A) incorporates national standards, international
15        standards, and industry-consensus best practices into
16        its public safety and child protection plan;
17            (B) revisits and updates the public safety and
18        child protection plan, including any criteria that
19        trigger updates and how the large frontier developer
20        determines when its foundation models or frontier
21        models are substantially modified enough to require
22        disclosures in accordance with subsection (d) or
23        subsection (e);
24            (C) identifies and responds to safety incidents;
25        and
26            (D) institutes internal governance practices to
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1        ensure implementation of these processes.
2    (b) A large frontier developer shall write its public
3safety and child protection plan so that, if successfully
4implemented, it would prevent unreasonable catastrophic risk.
5    (c) If a large frontier developer or large chatbot
6provider makes a material modification to its public safety
7and child protection plan, the large frontier developer or
8large chatbot provider shall clearly and conspicuously publish
9the modified public safety and child protection plan and a
10justification for that modification within 30 days after the
11modification is made.
12    (d) Before, or concurrently with, integrating a new
13foundation model, or a version of an existing foundation model
14that has been substantially modified, into a covered chatbot
15operated by a large chatbot provider, a large chatbot provider
16shall conspicuously publish on its website summaries of the
17following:
18        (1) all assessments of child safety risks conducted in
19    accordance with the large chatbot provider's public safety
20    and child protection plan;
21        (2) the results of those assessments;
22        (3) the extent to which third-party evaluators were
23    involved; and
24        (4) other steps taken to fulfill the requirements of
25    the public safety and child protection plan with respect
26    to child safety risks.
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1    (e) Before, or concurrently with, deploying a new frontier
2model or a version of an existing frontier model that a large
3frontier developer has substantially modified, a large
4frontier developer shall implement appropriate safeguards to
5prevent unreasonable catastrophic risk and conspicuously
6publish on its website summaries of the following:
7        (1) all assessments of catastrophic risks from the
8    frontier model conducted in accordance with the large
9    frontier developer's public safety and child protection
10    plan;
11        (2) the results of those assessments;
12        (3) the extent to which third-party evaluators were
13    involved; and
14        (4) other steps taken to fulfill the requirements of
15    the public safety and child protection plan with respect
16    to catastrophic risks from the frontier model.
17    A large frontier developer that publishes the information
18described in this subsection as part of a larger document,
19including a system card or model card, shall be deemed in
20compliance with this subsection.
21    (f) A large frontier developer shall not use or deploy a
22frontier model if doing so would pose unreasonable
23catastrophic risk.
24    (g) A large frontier developer or large chatbot provider
25shall not make a materially false or misleading statement or
26omission about covered risks from its activities or its
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1management of covered risks.
2    A large frontier developer or large chatbot provider shall
3not make a materially false or misleading statement or
4omission about its implementation of, or compliance with, its
5public safety and child protection plan.
6    This subsection does not apply to a statement that was
7made in good faith and was reasonable under the circumstances.
8    (h) When a large frontier developer or large chatbot
9provider publishes documents to comply with this Section, the
10large frontier developer or large chatbot provider may make
11redactions to those documents that are necessary to protect
12the large frontier developer's or large chatbot provider's
13trade secrets, the large frontier developer's or large chatbot
14provider's cybersecurity, public safety, or the national
15security of the United States or to comply with any State or
16federal law. If a large frontier developer or large chatbot
17provider redacts information in a document under this
18subsection, the large frontier developer or large chatbot
19provider shall describe the character and justification of the
20redaction in any published version of the document to the
21extent permitted by the concerns that justify redaction and
22shall retain the unredacted information for 5 years.
23    Section 20. Reporting of safety incidents.
24     (a) The Attorney General shall establish a mechanism to
25be used by a frontier developer, a large chatbot provider, or a
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1member of the public to report a safety incident that includes
2the following:
3        (1) the date of the safety incident;
4        (2) the reasons the incident qualifies as a safety
5    incident; and
6        (3) a short and plain statement describing the safety
7    incident.
8    (b) A frontier developer shall report any critical safety
9incident pertaining to one of its frontier models to the
10Attorney General within 15 days after discovering the critical
11safety incident.
12    (c) If a frontier developer discovers that a critical
13safety incident poses an imminent risk of death or serious
14physical injury, the frontier developer shall disclose that
15incident within 24 hours after discovering the critical safety
16incident to an authority, including any law enforcement agency
17or public safety agency with jurisdiction, that is appropriate
18based on the nature of that incident and as required by law.
19    (d) A large chatbot provider shall report any child safety
20incident pertaining to one of its covered chatbots to the
21Attorney General within 15 days after discovering the child
22safety incident.
23    (e) The Attorney General shall establish a mechanism to be
24used by a large frontier developer to confidentially submit
25summaries of any assessments of the potential for catastrophic
26risk resulting from internal use of its frontier models.
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1    (f) A large frontier developer shall transmit to the
2Attorney General a summary of any assessment of catastrophic
3risk resulting from internal use of its frontier models no
4less frequently than every 3 months.
5    (g) The Attorney General may transmit reports of safety
6incidents, summaries of assessments of the potential for
7catastrophic risk from internal use, and reports from
8employees to the General Assembly, the Governor, the federal
9government, or an appropriate State agency. The Attorney
10General shall consider any risks related to trade secrets,
11public safety, cybersecurity, or national security when
12transmitting reports.
13    Section 25. Rulemaking; definitions.
14    (a) On or before January 1, 2028, and annually thereafter,
15the Attorney General shall assess recent evidence and
16developments relevant to the purposes of this Act and may
17adopt rules to update the following definitions for the
18purposes of this Act to ensure that they accurately reflect
19technological developments, scientific literature, and widely
20accepted national and international standards:
21        (1) "Frontier model" so that it applies to foundation
22    models at the frontier of artificial intelligence
23    development.
24        (2) "Frontier developer" so that it applies to
25    developers of frontier models who are themselves at the
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1    frontier of artificial intelligence development.
2        (3) "Large frontier developer" so that it applies to
3    well-resourced frontier developers.
4        (4) "Large chatbot provider" so that it applies to
5    well-resourced companies developing covered chatbots that
6    may pose child safety risks.
7    (b) In adopting rules under this Section, the Attorney
8General shall take into account the following:
9        (1) similar thresholds used in international standards
10    or federal law, regulations, or guidance documents for the
11    management of catastrophic risks or child safety risks;
12        (2) input from stakeholders, including academics,
13    industry, the open-source community, and governmental
14    entities;
15        (3) the extent to which a person will be able to
16    determine, before beginning to train or deploy a
17    foundation model, whether that person will be subject to
18    this Act as a frontier developer or as a large frontier
19    developer with a focus toward allowing earlier
20    determinations if possible;
21        (4) the complexity of determining whether a person or
22    foundation model is covered, with a focus toward allowing
23    simpler determinations if possible;
24        (5) the external verifiability of determining whether
25    a person or foundation model is covered, with a focus
26    toward definitions that are verifiable by parties other
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1    than the frontier developer; and
2        (6) thresholds used by other states in similar law.
3    (c) The Attorney General shall align any rules adopted
4under this Section with a definition adopted in a federal law
5or regulation, to the extent that it is consistent with the
6purposes of this Act.
7    Section 30. Protection of whistleblowers.
8    (a) A frontier developer or large chatbot provider shall
9not make, adopt, enforce, or enter into a rule, regulation,
10policy, or contract that prevents an employee from making a
11disclosure protected under the Whistleblower Act.
12    (b) A large frontier developer shall provide a reasonable
13internal process through which an employee may anonymously
14disclose information to the large frontier developer if the
15employee has a good faith belief that the information
16discloses a substantial and specific danger to employees,
17public health, or safety or a violation of this Act, including
18a monthly update to the person who made the disclosure
19regarding the status of the large frontier developer's
20investigation of the disclosure and the actions taken by the
21large frontier developer in response to the disclosure.
22    (c) Except as provided in subsection (d), the disclosures
23and responses of the process required by this Section shall be
24shared with officers and directors of the large frontier
25developer at least once each quarter.
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1    (d) If an employee has alleged wrongdoing by an officer or
2director of the large frontier developer in a disclosure or
3response, subsection (c) shall not apply with respect to that
4officer or director.
5    Section 35. Third-party audits.
6    (a) At least once every calendar year, a large frontier
7developer shall retain a reputable third-party auditor to
8produce a report assessing the following:
9        (1) whether the large frontier developer has complied
10    with its public safety plan and any instances of
11    noncompliance;
12        (2) any instances where the large frontier developer's
13    public safety plan has not been stated clearly enough to
14    determine whether the large frontier developer has
15    complied; and
16        (3) whether redactions made by the large frontier
17    developer in documents published in accordance with this
18    Act are reasonable and whether any statements made by the
19    large frontier developer may be false or misleading.
20    (b) A large frontier developer shall allow the third-party
21auditor access to all materials produced to comply with this
22Act and any other materials reasonably necessary to perform
23the assessment required under subsection (a).
24    (c) The large frontier developer shall retain the
25auditor's report for 5 years and allow the Attorney General to
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1inspect the unredacted version of the report upon request.
2    (d) In conducting the audit, the auditor shall employ or
3contract one or more individuals with expertise in corporate
4compliance and one or more individuals with technical
5expertise in the safety of foundation models.
6    Section 40. Civil penalties.
7    (a) A large frontier developer that violates this Act
8shall be subject to a civil penalty in an amount dependent upon
9the severity of the violation that does not exceed $1,000,000
10per violation.
11    (b) A large chatbot provider that violates this Act shall
12be subject to a civil penalty in an amount dependent upon the
13severity of the violation that does not exceed $50,000 per
14violation.
15    (c) A civil penalty described in this Section shall be
16recovered in a civil action brought by the Attorney General.
17    Section 45. Loss of equity. The loss of value of equity
18does not count as damage to or loss of property for the
19purposes of this Act.
20    Section 50. Compliance with other laws.
21    (a) The Attorney General may adopt rules creating
22alternative compliance pathways for frontier developers or
23large chatbot providers that comply with a federal law,
		SB3261	- 20 -	LRB104 19179 SPS 32624 b
1regulation, or guidance document or a law of another state of
2the United States.
3    (b) A rule adopted under this Section shall:
4        (1) Specify the provisions of this Act for which the
5    alternative compliance pathway is being established.
6        (2) Specify the federal law, regulation, or guidance
7    document, or the law of another state, compliance with
8    which shall serve as the alternative compliance pathway
9    for the provisions specified under paragraph (1). The
10    federal law, regulation or guidance document or the law of
11    another state shall be substantially equivalent to, or
12    more protective against catastrophic risk than, the
13    provisions of this Act specified under paragraph (1).
14    (c) If a rule adopted under this Section identifies, as
15described in paragraph (1) of subsection (b), a provision of
16this Act that requires reporting to the State and if the
17alternative compliance pathway requires reporting to the
18federal government, the rule may, but need not, continue to
19require reporting to the State. The rule shall not consider
20reporting to another state to be sufficient for compliance
21with the relevant provision of this Act.
22    (d) A rule adopted under this Section may establish steps
23frontier developers or large chatbot providers must take to
24demonstrate their compliance with the alternative compliance
25pathway if it would otherwise be challenging for the State to
26verify compliance, such as the submission of documentation to
		SB3261	- 21 -	LRB104 19179 SPS 32624 b
1the State.
2    (e) A frontier developer or large chatbot provider that
3intends to make use of an alternative compliance pathway
4created by rule under this Section shall declare its intent to
5do so to the Attorney General.
6    After declaring its intent, a frontier developer or large
7chatbot provider shall be deemed in compliance with the
8provision of this Act identified by the rule under paragraph
9(1) of subsection (b) to the extent that the frontier
10developer or large chatbot provider complies with the
11requirements of the rule and meets the standards of, or
12complies with the requirements imposed or stated by, the
13federal law, regulation, or guidance document or law of
14another state identified by the rule under paragraph (2) of
15subsection (b) until the frontier developer or large chatbot
16provider declares the revocation of that intent to the
17Attorney General or the Attorney General revokes the rule in
18accordance with subsection (f).
19    (f) The Attorney General shall revoke a rule adopted under
20this Section if the conditions specified by this Section no
21longer apply.
22    Section 99. Effective date. This Act takes effect January
231, 2027.