United States of America: Passage Bill on Public Contracts: Automated Decision Systems Procurement Standards (SB 892)

On 23 May 2024, the Public Contracts: Automated Decision Systems Procurement Standards (SB 892) was passed by the California Senate. The Act mandates the Department of Technology to establish AI risk management standards, including a detailed risk assessment procedure for procurement of automated decision systems (ADS), methods for risk controls between state agency and vendors, adverse incident monitoring procedures, classification of prohibited use cases, and analysis of impact of high-risk ADS use on vulnerable communities. After the approval of such standards, state agency contracts for ADS would need to include clauses complying with the issues and procedures set out by the standards.