,,ii #aai? ,,congress #a/ ,session ,s4 #bibe ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #bi1 #bjbe,mr4 ,s*um] 7= himself1 ,ms4 ,cantwell1 & ,mr4 ,m>key7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ,a ,,bill ,to direct ! ,f$]al ,trade ,commission to conduct a /udy on ! gov]nance ( neural data & o!r relat$ data1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,managem5t ( ,individuals' ,neural ,data ,act ( #bjbe or ! ,,m9d ,act ( #bjbe4 #b4 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 an individual's neural data & o!r relat$ data c be monetiz$ & us$ to %ape individual behavior1 emotional /ates1 & decision mak+ 9 ways exi/+ laws d n adequately address2 7#b7 v]tical corporate integration ( neurote*nology1 artificial intellig5ce sy/ems1 we>able devices1 digital plat=ms1 & global data infra/ructure may create int]connect$ sy/ems ) insuffici5t transp>5cy1 acc\ntability1 or us] control reg>d+ ! use ( su* data2 7#c7 su* conc5tration increases ! risk ( behavioral influ5ce1 cognitive manipulation1 erosion ( p]sonal autonomy1 & ! exac]bation ( exi/+ social & economic disp>ities1 p>ticul>ly 9 ! abs5ce ( en=ceable privacy protections1 includ+ protections ( neural data & o!r relat$ data2 7#d7 ! abs5ce ( a compreh5sive ,f$]al /&>d = ! collection1 process+1 & int]national transf] ( su* data pres5ts risks to civil lib]ties & to national security1 giv5 ! dual-use pot5tial ( & =eign int]e/ 9 ! data assets ( ! ,unit$ ,/ates2 7#e7 /rong protections = su* data are ess5tial to safegu>d privacy1 prev5t discrim9ation & exploitation1 & ensure t innovation 9 neurote*nology applications proce$s ) acc\ntability & public tru/2 & 7#f7 :ile ?is ,act focuses prim>ily on neural data1 relat$ biometric & behavioral data t c reveal m5tal /ates may pose simil> risks & w>rant comp>ative analysis to id5tify broad] privacy gaps4 #c4 ,def9itions ,9 ?is ,act3 7#a7 ,artificial intellig5ce ,! t]m artificial intellig5ce has ! mean+ giv5 su* t]m 9 section #ejjb ( ! ,national ,artificial ,intellig5ce ,initiative ,act ( #bjbj 7#ae ,u4,s4,c4 #idja74 7#b7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#c7 ,f$]al ag5cy ,! t]m ,f$]al ag5cy has ! mean+ giv5 ! t]m ag5cy 9 section #eea ( title #e1 ,unit$ ,/ates ,code4 7#d7 ,neural data ,! t]m neural data means in=mation obta9$ by measur+ ! activity ( an individual's c5tral or p]iph]al n]v\s sy/em ?r\gh ! use ( neurote*nology4 7#e7 ,neurote*nology ,! t]m neurote*nology means a device1 sy/em1 or proc$ure t accesses1 monitors1 records1 analyzes1 pr$icts1 /imulates or alt]s ! n]v\s sy/em ( an individual to und]/&1 influ5ce1 re/ore1 or anticipate ! /ructure1 activity1 or function ( ! n]v\s sy/em4 7#f7 ,o!r relat$ data ,! t]m o!r relat$ data-- 7,a7 means biometric1 physiological1 or behavioral in=mation t does n directly measure ! neural activity or c5tral or p]iph]al n]v\s sy/em ( an individual1 b c be process$1 analyz$1 or comb9$ ) o!r data to inf]1 pr$ict1 or reveal cognitive1 emotional1 or psy*ological /ates or neurological conditions2 & 7,b7 may include he>t rate v>iability1 eye-track+ patt]ns1 voice analysis1 facial expression recognition1 sleep patt]ns1 or o!r signals d]iv$ f consum] devices1 we>ables1 or bios5sors4 #d4 ,f$]al trade commission /udy & report on neural data gov]nance 7a7 ,/udy & report 7#a7 ,/udy 7,a7 ,9 g5]al ,! ,commission %all conduct a /udy on-- 7i7 :at additional au?orities1 if any1 ! ,f$]al ,gov]nm5t ne$s to regulate neural data & o!r relat$ data t c reveal an individual's m5tal /ate or activity1 & to e/abli% appropriate privacy protections = individuals 9 ! ,unit$ ,/ates2 7ii7 be/ practices = privacy & data security = ! private sector to protect su* data2 & 7iii7 ! ext5t to :i* exi/+ laws1 regulations1 & gov]n+ frameworks1 includ+ ! ,heal? ,insurance ,portability & ,acc\ntability ,act ( #aiif 7,public ,law #ajd-aia71 gov]n ! use1 /orage1 process+1 portability1 & privacy ( su* data1 any gaps 9 law t %\ld be address$1 & pot5tial additional protections = su* data t fall outside ! scope ( su* ,act4 7,b7 ,consultation ,9 conduct+ ! /udy describ$ 9 subp>agraph 7,a71 ! ,commission %all consult )-- 7i7 ! ,director ( ! ,(fice ( ,sci5ce & ,te*nology ,policy2 7ii7 ! ,commission] ( ,food & ,drugs2 7iii7 o!r relevant ,f$]al ag5cies det]m9$ appropriate by ! ,commission2 & 7iv7 repres5tatives ( ! private sector1 academia1 civil society1 consum] advocacy organizations1 labor organizations1 pati5t advocacy organizations1 & cl9ical rese>* /akehold]s includ+ m$ical & heal? c>e pr(essionals4 7#b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all-- 7,a7 submit to ,congress a report on ! /udy conduct$ "u p>agraph 7#a7 t-- 7i7 includes ! in=mation describ$ 9 subsection 7b72 & 7ii7 describes a regulatory framework t maximizes opportunities = responsible innovation 9 neurote*nology :ile m9imiz+ ! risks ( h>m t arise f su* innovation1 su* z discrim9ation1 pr(il+1 surveillance1 manipulation1 & ! misuse ( neural data & o!r relat$ data 9 employm5t1 heal?c>e1 f9ancial s]vices1 education1 comm]ce1 & public life2 & 7,b7 publi% ! report on ! website ( ! ,commission4 7b7 ,report cont5ts ,! report describ$ 9 subsection 7a77#b7 %all include-- 7#a7 an analysis on-- 7,a7 ! collection1 process+1 /orage1 sale1 & transf] ( neural data & o!r relat$ data2 & 7,b7 all relevant uses ( neurote*nology1 neural data1 & o!r relat$ data = und]/&+1 analyz+1 & influ5c+ human m5tal /ates & behavior2 7#b7 a summ>y ( ! e?ical1 legal1 & regulatory l&scape surr\nd+ neural data & o!r relat$ data t c reveal an individual's m5tal /ate or activity1 includ+ any exi/+ guidel9es relat$ to-- 7,a7 ! collection ( su* data2 7,b7 cons5t = ! collection1 use1 & transf] ( su* data2 7,c7 individual rights relat+ to su* data2 7,d7 pr$ictive model+2 & 7,e7 us+ su* data to inf] or influ5ce behavior2 7#c7 an assessm5t (-- 7,a7 h[ neural & o!r relat$ data is collect$1 process$1 & transf]r$ 9 int]/ate comm]ce1 & ! b5efits & risks associat$ ) ! collection & use ( su* data1 includ+ h[ su* data may s]ve ! public int]e/1 improve ! quality ( life ( ! p ( ! ,unit$ ,/ates1 or advance innovation 9 neurote*nology & neurosci5ce2 & 7,b7 h[ ! use ( su* data may pose risks to individuals1 includ+ vuln]able populations1 across diff]5t contexts or use cases2 7#d7 recomm5dations = ! categorization & ov]sight ( neural data & o!r relat$ data uses1 includ+-- 7,a7 a framework t-- 7i7 di/+ui%es categories ( su* data1 classify+ su* data bas$ on bo? ! pot5tial = b5eficial use cases 7includ+ m$ical1 sci5tific1 or assi/ive applications71 & ! pot5tial = individual1 societal1 or gr\p-level h>m aris+ f misuse2 7ii7 describes ! prop]ties ( su* data bas$ on its capacity to directly or indirectly id5tify an individual or to reveal or inf] s5sitive p]sonal in=mation ab\t an individual2 & 7iii7 sugge/s correspond+ gov]nance requirem5ts su* z height5$ ov]sight1 /rict] cons5t /&>ds1 prohibit$ use cases reg>dless ( individual cons5t1 enhanc$ access re/rictions1 & cyb]security protections2 7,b7 /&>ds = computational models ( ! bra9 & guidance on assess+ h>ms 9 contexts :]e su* data is integrat$ ) artificial intellig5ce or us$ z "p ( a sy/em design$ to influ5ce behavior or decision mak+2 7,c7 an analysis ( :e!r1 & if s h[1 individuals may be expos$ to unfair1 deceptive1 or co]cive trade practices ?r\gh ! misuse ( neural data & o!r relat$ data across diff]5t environm5ts1 & recomm5dations = safegu>ds to prev5t su* h>ms2 & 7,d7 recomm5dations = categoriz+ c]ta9 applications ( neural data & o!r relat$ data1 or c]ta9 practices reg>d+ su* data1 z imp]missible1 su* z ^? design$ to manipulate behavior or erode privacy ) respect to an individual's m5tal /ate or activity2 7#e7 an exam9ation ( h[ ! application ( artificial intellig5ce to neural & o!r relat$ data t c reveal an individual's m5tal /ate or activity may re%ape ! risks1 ov]sight dem&s1 & e?ical consid]ations associat$ ) su* data2 7#f7 recomm5dations = consum] transp>5cy1 cons5t frameworks1 & neural data & o!r relat$ data use re/rictions1 su* z-- 7,a7 limit+ su* data use to only cle>ly disclos$ purposes2 7,b7 re/rict+ ! resale ( su* data to ?ird p>ties or ! use ( su* data = individual pr(il+ or t>get$ adv]tis+2 7,c7 ! use ( sep>ate1 conspicu\s cons5t me*anisms = ! use ( su* data 9 develop+ or deploy+ computational models ( ! bra92 7,d7 ! public disclosure (-- 7i7 int5d$ uses = su* data1 %>+ practices1 & artificial intellig5ce applications2 & 7ii7 policies relat$ to ! ret5tion & deletion ( su* data2 & 7,e7 prohibit$ use cases1 reg>dless ( individual cons5t2 7#g7 recomm5dations reg>d+ applications ( neural data & o!r relat$ data 9 specific areas1 includ+-- 7,a7 sectors or practices t raise conc]ns ab\t privacy1 manipulation1 discrim9ation1 inequality1 or long-t]m h>m1 su* z-- 7i7 employm5t practices1 su* z 9 hir+1 surveillance1 or p]=mance evaluation2 7ii7 educational sett+s & o!r sett+s involv+ *ildr5 "u ! age ( #ac & te5s2 7iii7 insurance1 f9ancial1 & h\s+ s]vices2 7iv7 neurom>ket+ & behavioral %ap+1 includ+ ! t>get+ ( consum]s2 7v7 comm]cial surveillance2 7vi7 monetization models1 su* z data brok]s1 t aggregate or sell neural data & o!r relat$ data2 7vii7 ! transf] ( neural data & o!r relat$ data ?r\gh acquisitions1 m]g]s1 or bankruptcy proce$+s2 7viii7 law en=cem5t & ! crim9al ju/ice sy/em2 & 7ix7 sectors :]e algori?mic recomm5dation or design patt]ns int5tionally amplify addictive use or behavioral manipulation2 7,b7 h[ exi/+ ,f$]al /atutes en=c$ by ! ,commission1 includ+ ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 & o!r consum] protection laws1 apply to neural data & o!r relat$ data2 & 7,c7 :e!r !re are regulatory gaps 9 protect+ ! privacy ( *ildr5 & te5s1 includ+ ! applicability ( ! ,*ildr5's ,onl9e ,privacy ,protection ,act ( #aiih 7#ae ,u4,s4,c4 #feja et seq47 & relat$ laws to neural data & o!r relat$ data2 7#h7 an analysis ( ! pot5tial security risks associat$ ) ! collection1 use1 & transf] ( neural data & o!r relat$ data1 includ+-- 7,a7 an assessm5t ( curr5t cyb]security & data protection requirem5ts applicable to entities t collect1 process1 or /ore neural data or o!r relat$ data1 includ+ any gaps 9 su* requirem5ts :]e su* entities fall outside exi/+ ,f$]al /&>ds1 su* z ! ,heal? ,insurance ,portability & ,acc\ntability ,act ( #aiif 7,public ,law #ajd-aia72 7,b7 an assessm5t ( int]ag5cy review models to det]m9e :e!r c]ta9 exports1 public releases1 or comm]cial uses ( neurote*nologies1 includ+ _! compon5t p>ts & integration ) artificial intellig5ce sy/ems1 %\ld be subject to re/rictions or enhanc$ controls2 7,c7 an exam9ation ( =eign inve/m5t risks 9 neurote*nology firms2 7,d7 recomm5dations on actions ! ,gov]nm5t & nongov]nm5t actors c take to ensure transp>5cy & due dilig5ce 9 int]national p>tn]%ips involv+ su* data2 7,e7 supply *a9 risks involv+ compon5ts us$ 9 neurote*nology t are acquir$ f =eign c\ntries2 & 7,f7 ! implications ( /or+ & process+ su* data locally v]sus 9 cl\d environm5ts2 7#i7 recomm5dations = inc5tive /ructures t promote e?ical innovation 9 neurote*nology t prioritize consum] protection & descriptions ( h[ su* /ructures c be align$ ) exi/+ regulatory & c]tification pa?ways or requirem5ts1 su* z ! developm5t (-- 7,a7 volunt>y /&>ds ti$ to bus9ess inc5tives1 su* z rese>* & developm5t tax cr$its & exp$it$ regulatory pa?ways2 7,b7 f9ancial support = responsible sci5tific inquiry & innovation 9 neurote*nology1 conduct$ 9 e?ically gov]n$ & controll$ environm5ts1 ) safegu>ds to prev5t misuse or h>mful applications2 7,c7 regulatory s&box me*anisms to enable e>ly-/age neural data applications to be te/$ ) ag5cy ov]sight1 in=m$ cons5t1 & /ructur$ risk review2 7,d7 policies t promote long-t]m support = us]s ( bra9-comput] int]faces1 su* z int]op]ability /&>ds & po/-trial ma9t5ance practices2 7,e7 competitive inc5tives1 su* z procurem5t pref]5ces = companies t meet specifi$ /&>ds relat+ to ! use ( neurote*nology2 7,f7 public-private p>tn]%ips to develop op5 /&>ds & e?ical practices reg>d+ ! treatm5t ( neural data & o!r relat$ data2 & 7,g7 ways ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices & ! ,food & ,drug ,adm9i/ration c coord9ate on ! use & approval ( neurote*nology to r$uce reimbursem5t & cov]age b>ri]s2 7#aj7 a propos$ framework = en=cem5t me*anisms1 rem$ies1 & p5alties = ! misuse (1 gross neglig5ce reg>d+ ! use (1 & unau?oriz$ collection1 use1 transf]1 or disclosure ( neural data & o!r relat$ data2 & 7#aa7 o!r analysis & recomm5dations det]m9$ appropriate by ! ,commission4 7c7 ,annual updates ,n lat] ?an #a ye> aft] ! date ! ,commission submits ! report to ,congress "u subsection 7a71 & n less frequ5tly ?an annually !reaft]1 ! ,commission %all publicly update ! f9d+s 9 su* report to-- 7#a7 reflect evolv+ advancem5ts 9 neurote*nology1 neural data & o!r relat$ data use cases1 & ! associat$ risks involv$ ) su* advancem5ts & use cases2 & 7#b7 assess :e!r additional reports or updates to any guidance are necess>y to ensure t privacy1 p>ticul>ly z x relates to neural data & o!r relat$ data1 cont9ues to be protect$4 7d7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ #aj1jjj1jjj = purposes ( c>ry+ out ?is section4 #e4 ,conditional limitations on ,f$]al ag5cy use ( neural data 7a7 ,guidance to ,f$]al ag5cies 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! ,commission submits ! report describ$ 9 section #d7;a77#b71 ! ,director ( ! ,(fice ( ,sci5ce & ,te*nology ,policy1 9 consultation ) ! ,commission & ! ,director ( ! ,(fice ( ,managem5t & ,budget1 %all develop guidance1 us+ su* report to in=m su* guidance1 reg>d+ ! procurem5t & op]ational use by ,f$]al ag5cies ( neurote*nology t collects1 uses1 procures1 or o!rwise processes neural data or o!r relat$ data4 ,su* guidance %all id5tify-- 7,a7 prohibit$1 p]missible1 & conditionally p]mitt$ use cases ( su* neurote*nology t are consi/5t ) su* report2 7,b7 te*nical1 proc$ural1 & e?ical safegu>ds reg>d+ ea* use case ( su* neurote*nology2 & 7,c7 requirem5ts = transp>5cy1 limitations reg>d+ ! purposes = :i* su* neurote*nology c be us$1 individual opt-9 cons5t me*anisms reg>d+ ! use ( su* neurote*nology1 & protections = ! privacy ( ! p ( ! ,unit$ ,/ates4 7#b7 ,b9d+ guidance ,n lat] ?an #fj days aft] ! ,director ( ! ,(fice ( ,sci5ce & ,te*nology ,policy develops ! guidance "u p>agraph 7#a71 ! ,director ( ! ,(fice ( ,managem5t & ,budget %all issue b9d+ implem5tation guidance to ea* ,f$]al ag5cy pursuant to ! guidance develop$ "u p>agraph 7#a74 7b7 ,prohibition 7#a7 ,9 g5]al ,! head ( a ,f$]al ag5cy may n procure or op]ate any neurote*nology t collects1 uses1 procures1 or o!rwise processes neural data 9 a mann] inconsi/5t ) ! guidance issu$ "u subsection 7a77#b74 7#b7 ,effective date ,p>agraph 7#a7 %all take effect on ! date t is #a ye> aft] ! date on :i* ! ,director ( ! ,(fice ( ,managem5t & ,budget issues guidance 9 accordance ) subsection 7a77#b74