Technology

Creates the Illinois Age-Appropriate Design Code Act. Provides that all covered entities that operate in the State and process children's data in any capacity shall do so in a manner consistent with the best interests of children. Provides that a covered entity subject to the Act shall take specified actions to protect children's privacy in connection with online services, products, or features, including completing a data protection impact assessment for an online service, product, or feature that is reasonably likely to be accessed by children; and maintain documentation of the data protection impact assessment. Contains provisions concerning additional requirements for covered entities; prohibited acts by covered entities; data practices; enforcement by the Attorney General; limitations of the Act; data protection impact assessment dates; and severability. Amends the State Finance Act to create the Age-Appropriate Design Code Enforcement Fund. Effective immediately.

Amends the Illinois Procurement Code. Provides that any contract that provides for the storage of any State data shall include a requirement that the State data must be processed, stored, and disposed of within the territory of the United States. Provides that, for any contract that provides for the storage of State data, the Chief Procurement Officer shall allocate to any qualified bidder an earned credit of: (1) 2% of the contract base bid for ensuring that all State data that is included in the contract is stored within the State of Illinois; and (2) an additional 4% of the contract base bid for ensuring that all such State data is stored within an opportunity zone. Contains provisions concerning data centers.

Creates the Artificial Intelligence Systems Use in Health Insurance Act. Provides that the Department of Insurance's regulatory oversight of insurers includes oversight of an insurer's use of AI systems to make or support adverse determinations that affect consumers. Provides that any insurer authorized to operate in the State is subject to review by the Department in an investigation or market conduct action regarding the development, implementation, and use of AI systems or predictive models and the outcomes from the use of those AI systems or predictive models. Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome with regard to the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the denial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predictive models shall be meaningfully reviewed, in accordance with review procedures determined by Department rules, by an individual with authority to override the AI systems and determinations. Authorizes the Department to adopt emergency rules to implement the Act and to adopt rules concerning standards for full and fair disclosure of an insurer's use of AI systems. Makes a conforming change in the Illinois Administrative Procedure Act.

Declares the third Friday in March 2025 and March 2026 as FIRST Robotics Day in the State of Illinois. Recognizes the continuing importance of the National Science Foundation's math and science education programs and encourages local school districts and other educational agencies to fund afterschool robotics programs. Encourages schools and educators to observe the day with appropriate activities that teach students about robotics and engage them about the study of mathematics and science.

Creates the Digital Age Assurance Act. Provides that specified manufacturers shall take commercially reasonable and technically feasible steps to, upon activation of a device, determine or estimate the age of the device's primary user and provide websites, applications, application stores, and online services with a digital signal regarding the user's age. Sets forth requirements for any website, application, or online service that makes available mature content. Provides that a website, application, or online service with actual knowledge that a user is under 18 years of age shall, to the extent commercially reasonable and technically feasible, provide readily available features for parents or guardians to support a minor with respect to the minor's use of the website, application, or online service. Provides that specified manufacturers shall comply with the Act in a nondiscriminatory manner. Provides that the Attorney General may commence a civil action to enforce the provisions of the Act. Sets forth provisions concerning civil actions. Limits home rule. Effective January 1, 2026.

Creates the Illinois High-Impact AI Governance Principles and Disclosure Act. Makes findings. Defines terms. Requires the Department of Innovation and Technology to adopt rules regulating businesses that use AI systems to ensure compliance with the 5 principles of AI governance. Lists the 5 principles of AI governance. Requires the Department to adopt rules to ensure that a business that uses an AI system publishes a report on the business's website, with certain requirements. Provides for a civil penalty for violations. Limits applicability to businesses with 10 or more employees. Effective January 1, 2026.

Amends the School Code. Requires the State Board of Education to establish the State Instructional Technology Advisory Board, which shall collaborate with the State Board of Education to provide guidance, integration, oversight, and evaluation of education technologies, including, but not limited to, artificial intelligence technologies. Sets forth the membership of the Advisory Board and terms. Requires the State Board, with the Advisory Board, to develop standards concerning safety, transparency, data privacy, and educational quality for any artificial intelligence technology that may be used in schools and develop guidance for school districts and educators on the use of artificial intelligence in education. Requires the annual school district report to the State Board regarding educational technology capacity and policies to include student, teacher, and district use of artificial intelligence. Effective immediately.

Amends the State Officials and Employees Ethics Act. Requires each officer, member, and employee to complete, at least annually, a cybersecurity training program, with certain requirements. Requires each ultimate jurisdictional authority to submit to the applicable Ethics Commission, at least annually, a report regarding that training, with certain requirements.

Creates the Digital Age Assurance Act. Provides that specified manufacturers shall take commercially reasonable and technically feasible steps to, upon activation of a device, determine or estimate the age of the device's primary user and provide websites, applications, application stores, and online services with a digital signal regarding the user's age. Sets forth requirements for any website, application, or online service that makes available mature content. Provides that a website, application, or online service with actual knowledge that a user is under 18 years of age shall, to the extent commercially reasonable and technically feasible, provide readily available features for parents or guardians to support a minor with respect to the minor's use of the website, application, or online service. Provides that specified manufacturers shall comply with the Act in a nondiscriminatory manner. Provides that the Attorney General may commence a civil action to enforce the provisions of the Act. Sets forth provisions concerning civil actions. Limits home rule. Effective January 1, 2026.

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately.