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AI Summary
The New Jersey Algorithmic Accountability Act requires certain businesses to conduct automated decision and data protection impact assessments in consultation with external experts.
Business Impact
If you operate a high-risk automated decision system in New Jersey, you must conduct impact assessments by one year after enactment or face legal action.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
The New Jersey Algorithmic Accountability Act aims to enhance transparency and accountability in automated decision-making processes. It mandates that businesses conduct thorough assessments of their high-risk automated decision systems and data protection practices, consulting with external experts when possible. This legislation targets entities with significant consumer data and aims to mitigate risks related to bias, discrimination, and privacy breaches.
Key Provisions
- Requires covered entities to conduct automated decision system impact assessments for high-risk systems.
- Mandates data protection impact assessments for high-risk information systems.
- Assessments must evaluate risks related to bias, discrimination, and privacy.
- Entities must consult external experts when conducting assessments.
- Covered entities must record any indications of bias or security threats found in assessments.
Latest Legislative Action
Reported out of Assembly Comm. with Amendments, 2nd Reading
Bill Sponsors
| Name | Role | District |
|---|---|---|
| Andrew Zwicker D | Sponsor | HD-016 |
| Britnee Timberlake D | Sponsor | HD-034 |
| Herbert Conaway D | Sponsor | HD-007 |
Roll Call Votes
A ·
Assembly Committee: Reported with Amendments ·
Jun 10, 2019
5 Yea
0 Nay
2 Other
Passed ✓
Compliance Checklist
Conduct automated decision system impact assessments for existing high-risk systems.
Who: Covered entities
Deadline: Within one year of enactment
Penalty: Potential civil action by the Attorney General
Who: Covered entities
Deadline: Within one year of enactment
Penalty: Potential civil action by the Attorney General
Conduct data protection impact assessments for existing high-risk information systems.
Who: Covered entities
Deadline: Within one year of enactment
Penalty: Potential civil action by the Attorney General
Who: Covered entities
Deadline: Within one year of enactment
Penalty: Potential civil action by the Attorney General
Full Legal Analysis
The New Jersey Algorithmic Accountability Act requires covered entities to conduct automated decision system impact assessments and data protection impact assessments for high-risk systems. These assessments must evaluate the systems' impacts on accuracy, fairness, bias, discrimination, privacy, and security. Covered entities, defined as businesses with significant revenue or consumer data, must comply within one year of the bill's enactment. Key definitions include 'automated decision system,' which encompasses AI and machine learning technologies, and 'high-risk automated decision system,' which poses significant risks to consumer privacy or leads to discriminatory outcomes. The assessments must be conducted in consultation with external third parties, including independent auditors and independent technology experts, if reasonably possible. Additionally, covered entities are required to make a record of any indication of racial or other bias, or any threat to the security of a consumer's personally identifiable information found in the impact assessments. This legislation aligns with similar laws in other states that seek to regulate AI and automated decision-making processes.
Official Source
Official Bill Text
View A5430 on official legislature website →
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