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Committee urged to adopt cyber‑ransom ban as city staff warns of AI-related risks
Summary
A Rules & Public Policy committee heard a presentation on responsible AI use and reviewed an ordinance that would prohibit the city from paying cyber ransom demands; staff said aligning with state guidance and insurance requirements is the goal and recommended moving the ordinance to the council floor.
Miss Dukesdee briefed the committee on municipal risks tied to AI and cyber extortion, urging local rules for responsible use and data protection and noting that "AI does not replace a human attorney." She said several municipalities have faced legal and financial penalties after inserting AI‑produced language into legislation and that the city’s insurance coverage for ransomware may hinge on whether the city follows proper governance and vendor requirements.
The committee considered an ordinance "establishing a municipal policy prohibiting the payment of cyber ransom demands," which Dukesdee said is intended to align North College Hill with state guidance and to reduce the city’s attractiveness to extortion actors. Dukesdee told the committee the state has signaled tax dollars should not be used to pay ransom and that insurance carriers may require documented policies and cyber hygiene before paying any fees.
Mayor Nicholson told the panel that "House Bill 96 went into effect September 2025," noting state-level cybersecurity expectations and urging compliance. Several members supported advancing the ordinance to the full council so the body can adopt any final wording there; others asked staff to supply additional clarifications about how the ordinance would interact with insurance claims, incident response and any state law requirements.
Council members also discussed internal council governance for the use of generative AI tools and whether the council should adopt rules separate from the city-wide employee AI policy. Dukesdee suggested council members avoid uploading constituent names or confidential numbers into public AI platforms, use licensed enterprise tools when possible and have council rules that mirror staff protections so the city remains eligible for insurance coverage in a breach.
The committee did not record a formal vote in the meeting transcript; members directed staff to provide follow-up material and to consider forwarding the ordinance to the council floor for potential action at a future meeting.
