HB4248 - ALGORITHMIC PRICING PROHIBITION TRANSPARENCY
Bill as Introduced
Creates the Algorithmic Pricing Transparency Act. Provides that any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State shall provide a clear and conspicuous disclosure if the price displayed to a consumer is generated using surveillance pricing. Provides that a consumer may opt out of surveillance pricing and a covered entity shall provide the consumer with a non-personalized baseline price for the goods or services. Prohibits a covered entity from using specified personal information to generate algorithmic pricing. Provides that a violation of the Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. Effective one year after becoming law.
House Floor Amendment 2
The amendment creates the Algorithmic Pricing Prohibition Act to prohibit businesses from using a consumer’s personal data to set individualized prices for goods or services through surveillance pricing practices. The legislation excludes certain pricing activities, including general market-based price changes, algorithmic pricing models that do not rely on personal data, and the use of personal data for creditworthiness or underwriting determinations. The Illinois Attorney General would be authorized to investigate violations, seek injunctive relief, pursue restitution, and recover enforcement costs, with civil penalties of up to $50,000 per violation. The bill also includes home rule preemption language and clarifies that the Act does not limit existing federal or State law.
Potential County Impacts
While the legislation is primarily directed at private-sector business practices and consumer protection, counties could experience indirect impacts related to procurement, technology oversight, and consumer-facing services. Counties that utilize third-party vendors employing dynamic pricing tools or artificial intelligence systems for public-facing transactions may need to monitor vendor compliance and review contractual practices to ensure pricing models do not rely on prohibited uses of personal data.
The bill’s home rule preemption provision is noteworthy because it would prohibit home rule units of local government, including Cook County, from adopting separate or conflicting local regulations governing surveillance pricing practices.
HB4319 - DATA CENTER-PROPERTY RTS
House Bill 4319 creates the Property Owner Protection from Data Center Impacts Act. This legislation aims to provide a legal remedy and compensation for property owners whose land or businesses are negatively impacted by the construction or operation of nearby data centers. The Act specifically targets properties located within 1,000 feet of a data center, establishing that owners are eligible for compensation if the facility causes a "measurable reduction" in fair market value, business revenue, or significant environmental and operational issues such as excessive noise, vibration, traffic, or lighting problems.
The bill outlines a structured process for determining compensation, starting with a certified appraisal procedure to measure the decline in property value. Notably, the legislation includes a compensation formula that mandates payment equal to 1.5 times the proven reduction in a property's fair market value, reflecting the substantial non-market losses families and businesses may suffer. It also provides for 100% reimbursement of demonstrated business losses supported by tax filings and financial records. While data center owners may propose mitigation efforts—such as sound walls or landscaping—in lieu of payment, the bill authorizes property owners to file civil actions to recover damages, attorney’s fees, and costs if compensation is not paid within 90 days of a determination. By limiting the concurrent exercise of home rule powers, the Act ensures a statewide standard for holding data center developers, rather than taxpayers, financially responsible for the local impacts of their siting and operational decisions.
One of the most significant concerns for counties is the potential for direct financial liability. The bill defines "Data center owner" broadly, and in instances where a county or a local government unit owns the land or is a partner in a public-private partnership for a data center, the county itself could be held responsible for paying the "1.5 times" market value reduction penalty. Even if the county is not the owner, the legislation could lead to a decrease in the local property tax base. If properties within 1,000 feet of a data center are legally recognized as having a "measurable reduction" in fair market value, their assessed values will likely be lowered. This would result in decreased property tax revenue for the county, school districts, and other local taxing bodies, potentially forcing a shift in the tax burden onto other residents or a reduction in county services.
Administratively, the bill imposes a new regulatory and legal burden on county offices. County assessors and their staffs may face an influx of complex assessment appeals and requests for certified appraisals specifically tied to data center impacts. Furthermore, because the bill creates a specific civil cause of action for property owners, counties may find themselves entangled in protracted litigation, either as named parties or as sources of evidence regarding zoning decisions and noise complaints. This could lead to increased costs for county legal departments and a strain on the local court system.
HB4980 - HUMAN CONTROL OF AI ACT
The introduction of House Bill 4980, known as the Meaningful Human Control of Artificial Intelligence Act, marks a significant legislative effort in Illinois to regulate the intersection of public administration and emerging technology. At its core, the proposed law seeks to prevent the unchecked delegation of government authority to automated decision-making systems. By mandating that humans remain "in the loop," the ill aims to preserve accountability and transparency in functions ranging from public employment to the distribution of essential social services. For county governments, which often serve as the primary interface between citizens and the state, this legislation introduces a complex set of new mandates, operational hurdles, and legal liabilities.
The scope of the Act is broad, defining automated decision-making systems as any software that uses algorithms or artificial intelligence to automate, support, or replace human judgment. Under this framework, a county government or its contractors would be prohibited from using such systems unless they ensure meaningful and continuing human review. This requirement is not a mere formality; it dictates that the human overseer must have the technical understanding to interpret the system's logic and the actual authority to override its conclusions. Furthermore, the bill explicitly forbids the use of these technologies to "predict" an individual’s personality or emotional state, a provision that targets the growing use of AI in hiring and psychological assessment.
For county administrative offices, the most immediate impact would be felt in the procurement and implementation phases of new software. Before any automated system can be deployed, the county would be required to perform a comprehensive initial impact assessment. This assessment must document the specific objectives of the system, the data sets used to train it, and a rigorous analysis of whether the tool could result in discriminatory outcomes. These reports would not be one-time requirements, as the bill mandates updated assessments every two years to account for "algorithmic drift" or changes in how the software processes local data. This creates a perpetual cycle of technical auditing that many smaller or mid-sized counties may not currently have the internal expertise to manage.
Labor relations and human resources within county governments would also face a fundamental shift. The Act stipulates that no public employer may implement an automated system that affects workers without first notifying and negotiating with relevant labor organizations. This effectively makes the use of AI a mandatory subject of collective bargaining. If a county department wishes to use software to track employee productivity or screen job applicants, it must prove to union representatives and the state that these tools do not infringe upon existing employee rights or safety standards. This layer of oversight is intended to protect public servants from "management by algorithm," where workers might otherwise be penalized by software they do not understand and cannot challenge.
The administration of public benefits represents another area of high stakes under HB 4980. Counties often manage local housing, health, and emergency assistance programs that rely on automated logic to determine eligibility. The Act classifies these as high-impact areas, requiring that any decision to deny, reduce, or terminate benefits be personally verified by a human employee. This employee must ensure the accuracy of the underlying data and be prepared to provide a clear, written explanation of the decision to the affected resident. While this provides a vital safeguard for vulnerable populations, it also risks slowing down the speed of service delivery, as automated systems that once processed applications in seconds will now require manual intervention at key decision points.
Finally, the legislation introduces a significant new layer of legal risk for county boards and taxpayers. By establishing a private right of action, the bill allows individuals who believe they have been harmed by a non-compliant automated system to sue the county for damages and attorney’s fees. This creates a powerful incentive for strict compliance but also opens the door to litigation over software glitches or "black-box" decisions that were not properly vetted. Consequently, Illinois counties would need to invest heavily in legal and technical compliance frameworks to avoid the high costs of defending their technological infrastructure in court. Ultimately, while the Act champions the rights of the individual against the machine, it places the burden of proof and the cost of caution squarely on the shoulders of local government.
HB4989 - DATA CENTER HEATING/COOLING
Creates the Data Center Heating and Cooling Act. Defines "air to water heat exchanger" and "data center". Provides that any new or existing data center in the State shall adopt a heat energy reuse plan that involves the use of an air to water heat exchanger to help heat homes and businesses in the area around the data center. Provides that any data center constructed on or after the effective date of the Act that has an aggregate demand load of 20 megawatts or more shall have a liquid cooling system, such as direct-to-chip cooling or immersion cooling, incorporated into the data center. Effective January 1, 2027.
HB5513 - HYPERSCALE DATA CENTERS
Amends the Environmental Protection Act, Energy Efficient Building Act, Illinois Power Agency Act, Public Utilities Act, and related statutes to establish comprehensive environmental, water, and energy regulations for hyperscale data centers. In the Environmental Protection Act, requires cumulative impact assessments, public notice, and community benefits agreements for data centers; prohibits nondisclosure agreements; and creates the Data Center Community Intervenor Compensation Fund and Hyperscale Data Center Public Benefits and Affordability Fund funded by annual fees based on peak demand. Mandates water resource planning, quarterly water usage reporting, water scarcity plans, and Water Impact Permits with public hearings and renewal every 5 years. Requires compliance with stringent energy codes and annual energy and water reporting to the Illinois Commerce Commission. Expands renewable energy procurement programs, establishes a hyperscale data center self-direct program, and strengthens equity, transparency, and labor standards in clean energy initiatives. Creates the Residential Automated Solar Permitting Platform Act to require municipalities and counties to adopt a residential automated solar permitting platform on or before July 1, 2027, and authorizes persons to file a civil action against a municipality or county in violation.
SB0315 - ARTIFICIAL INTELLIGENCE IN COMMERCIAL COMMUNICATIONS
Bill as Introduced
Amends the Predatory Loan Prevention Act. Makes technical changes in a Section concerning the short title.
Senate Floor Amendment 2
The amendment would create the Artificial Intelligence Safety Measures Act, establishing a comprehensive regulatory framework for certain advanced artificial intelligence developers operating in Illinois. The proposal would require large frontier AI developers to implement formal safety and risk-management frameworks addressing catastrophic-risk prevention, cybersecurity, internal governance, third-party testing and oversight of advanced AI systems. The legislation also requires transparency reports, independent annual audits, disclosure filings and incident reporting to State agencies. Oversight responsibilities would be assigned to the Illinois Emergency Management Agency and Office of Homeland Security in consultation with the Illinois Attorney General. The bill further creates whistleblower protections, establishes civil penalties for violations and exempts certain AI-related safety information from disclosure under the Freedom of Information Act. The legislation contains home rule limitation language, indicating that the State intends to maintain centralized authority over regulation covered by the Act.
From a county government perspective, the amendment could create indirect operational and policy impacts even though its primary focus is on private-sector AI developers. County emergency management agencies, public safety operations and local cybersecurity planning efforts may eventually be affected as State agencies develop reporting systems, incident-response procedures and guidance related to AI safety risks. Counties could also experience downstream impacts as vendors providing technology, software or AI-enabled services to local governments adapt to new State compliance standards and audit requirements. In addition, the home rule limitation language is noteworthy because it signals legislative intent to limit local regulation in this emerging policy area, potentially restricting the ability of home rule units to adopt separate AI safety frameworks that conflict with State law.
Senate Floor Amendment 3
The amendment removes language that would have prohibited home rule units from regulating disclosures related to the use of artificial intelligence in commercial communications with consumers. By deleting that provision, the amendment restores the ability of home rule governments, including Cook County and home rule municipalities, to potentially adopt their own local requirements governing AI-related consumer disclosures unless otherwise preempted by State law.
From a county government perspective, the amendment is significant because it eliminates a proposed limitation on local regulatory authority. Under the amended bill, home rule units would retain flexibility to address emerging artificial intelligence issues at the local level, including potential transparency or disclosure standards involving AI-generated consumer communications.
SB0317 - CONSUMER ARTIFICIAL INTELLIGENCE NOTICE ACT
Bill as Introduced
Amends the Consumer Legal Funding Act. Makes a technical change in a Section concerning the short title.
Senate Floor Amendment 1
The amendment creates the Consumer Artificial Intelligence Notice Act to require businesses that use conversational artificial intelligence systems to interact with consumers through a chat interface to clearly disclose at the outset of the interaction that the consumer is communicating with an automated system rather than a human. Violations of the disclosure requirement would constitute an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act. The bill also preempts home rule authority on the subject and makes conforming changes to the Consumer Fraud and Deceptive Business Practices Act.
Senate Floor Amendment 2
Legislation approved by the Illinois General Assembly would create the Consumer Artificial Intelligence Notice Act, requiring businesses that use conversational artificial intelligence systems in customer service chat interfaces to clearly disclose when a consumer is interacting with an automated system rather than a human representative. The bill provides that violations would constitute unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act and establishes procedures for notice of violations and enforcement. The legislation also includes explicit home rule preemption language, indicating that regulation of these AI disclosure requirements would be governed at the State level.
From a county government perspective, the legislation could have indirect implications for counties and county-affiliated entities that use AI-enabled customer service or public information tools on websites or digital platforms. Counties utilizing automated chat systems for public health information, permitting assistance, court services or other constituent interactions may need to ensure that those systems include clear disclosures identifying AI-generated communications. The amendment's home rule preemption language is also noteworthy because it would prohibit home rule units from adopting separate or conflicting local regulations governing AI disclosure requirements, reinforcing a statewide regulatory framework for consumer-facing artificial intelligence systems.
SB1050 - COUNTY DATA CENTER REGULATION
Bill as Introduced
Amends the Economic Development Project Area Tax Increment Allocation Act of 1995. Makes a technical change in a Section concerning the short title.
Senate Floor Amendment 1
SB3120 - DCEO-DATA CENTERS
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that a new or existing data center is a qualifying data center for purposes of the Act only if it provides in its application details regarding the water stewardship strategy used by it. Requires the Department of Commerce and Economic Opportunity's annual report to the General Assembly and the Governor on data center investments to provides details regarding the water stewardship strategies used by each recipient business.
SB3601 - PROFESSIONAL AI OVERSIGHT ACT
Creates the Professional AI Oversight Act. Defines terms. Provides that a licensee shall prominently disclose when a person who is paying for a service provided by the licensee is interacting with artificial intelligence. Provides that the disclosure shall (i) be provided verbally at the start of an oral exchange or conversation and in writing before a written exchange and (ii) notify the person of the specific purpose of the artificial intelligence that will be used in the interaction. Sets forth rulemaking authority for the Department of Financial and Professional Regulation. Provides that any individual, corporation, or entity found in violation of the Act shall pay a civil penalty to the Department in an amount not to exceed $2,500 per violation, as determined by the Department, with penalties assessed based on the degree of harm and the circumstances of the violation. Provides that an individual, corporation, or entity that is found in violation of the Act shall pay the civil penalty within 60 days after the date of the issuance of an order by the Department imposing the civil penalty. Provides that the Department's order shall constitute a judgment and may be filed and executed in the same manner as any judgment from a court of record. Provides that the Department may investigate any actual, alleged, or suspected violation of the Act. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice within the meaning of the Act for any person to use, prompt, or otherwise cause artificial intelligence to interact with a person while engaging in trade and commerce without clearly and conspicuously disclosing to the person with whom the artificial intelligence interacts, if asked or prompted by that person, that the person is interacting with artificial intelligence and not a human. Effective January 1, 2027.
SB4016 - HYPERSCALE DATA CENTERS
Amends the Environmental Protection Act, Energy Efficient Building Act, Illinois Power Agency Act, Public Utilities Act, and related statutes to establish comprehensive environmental, water, and energy regulations for hyperscale data centers. In the Environmental Protection Act, requires cumulative impact assessments, public notice, and community benefits agreements for data centers; prohibits nondisclosure agreements; and creates the Data Center Community Intervenor Compensation Fund and Hyperscale Data Center Public Benefits and Affordability Fund funded by annual fees based on peak demand. Mandates water resource planning, quarterly water usage reporting, water scarcity plans, and Water Impact Permits with public hearings and renewal every 5 years. Requires compliance with stringent energy codes and annual energy and water reporting to the Illinois Commerce Commission. Expands renewable energy procurement programs, establishes a hyperscale data center self-direct program, and strengthens equity, transparency, and labor standards in clean energy initiatives. Creates the Residential Automated Solar Permitting Platform Act to require municipalities and counties to adopt a residential automated solar permitting platform on or before July 1, 2027, and authorizes persons to file a civil action against a municipality or county in violation.