United States of America: Introduced California Bill on Automated Decision Tools (AB 2930) including testing requirement

On 15 February 2024, the Bill on Automated Decision Tools (AB 2930) was introduced in the California House of Representatives. The Bill mandates a comprehensive testing requirement for automated decision tools used across various sectors. The Bill requires both deployers and developers of such tools to conduct an annual impact assessment. These assessments, detailing the purpose, intended benefits, uses, and deployment contexts of the automated decision tools, must be submitted to the Civil Rights Department upon request. Failure to comply could result in an administrative fine of up to USD 10’000. Additionally, the Bill mandates that individuals subject to decisions made by these tools be notified and, in certain cases, offered an alternative to automated decision-making. It also sets forth provisions against algorithmic discrimination, defining it as unjust differential treatment facilitated by automated tools. Violations, particularly those involving algorithmic discrimination, could see deployers or developers facing civil penalties of USD 25’000 per violation.