S. 3308 establishes the first comprehensive federal framework to protect civil rights in artificial intelligence use, prohibiting developers and deployers of AI systems from discriminating or causing unequal impacts based on protected characteristics like race, gender, disability, age, and religion in consequential decisions affecting employment, housing, credit, criminal justice, voting, and education. The bill requires companies to conduct pre-deployment evaluations with independent auditors before using AI systems and conduct annual impact assessments afterward, with findings reported to the Federal Trade Commission within 30 days and records retained for ten years. It mandates transparency through plain-language public disclosures about data practices and user rights, while giving individuals the right to opt out of algorithmic decisions, appeal algorithmic determinations, and access human alternatives. Enforcement occurs through the FTC, state attorneys general, and private lawsuits, with penalties up to $15,000 per violation or 4% of annual revenue, and the FTC is authorized to hire up to 500 additional personnel to carry out the law. The legislation specifically prohibits companies from using arbitration agreements or class action waivers to avoid accountability and preserves existing worker protections and regulatory standards.
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