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AI Summary
This bill prohibits discrimination by automated decision systems against protected classes in financial and healthcare services.
Business Impact
If you use automated decision systems in lending or healthcare in New Jersey, you must ensure non-discriminatory practices or face legal penalties.
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
New Jersey's S1402 aims to prevent discrimination by automated decision systems in financial and healthcare sectors. It mandates that these systems treat all individuals fairly, particularly those in protected classes. Businesses using such systems must be vigilant to avoid disproportionate impacts on these groups.
Key Provisions
- Prohibits discrimination in lending based on automated decision systems.
- Prohibits discrimination in insurance practices using automated decision systems.
- Prohibits discrimination in healthcare services through automated decision systems.
- Defines 'automated decision system' and 'member of a protected class'.
- Establishes penalties for violations as unlawful discrimination.
- Takes effect three months after enactment.
Latest Legislative Action
Withdrawn Because Approved P.L.2025, c.370.
Bill Sponsors
| Name | Role |
|---|---|
| Lagana, Joseph A. | Primary |
| Mukherji, Raj | Primary |
| Diegnan, Patrick J., Jr. | Cosponsor |
| Turner, Shirley K. | Cosponsor |
Compliance Checklist
Ensure automated decision systems do not discriminate against protected classes.
Who: Financial institutions, insurance companies, healthcare providers.
Deadline: By the effective date of the bill.
Penalty: Legal penalties for unlawful discrimination.
Who: Financial institutions, insurance companies, healthcare providers.
Deadline: By the effective date of the bill.
Penalty: Legal penalties for unlawful discrimination.
Related & Companion Bills
Full Legal Analysis
The bill prohibits discrimination by automated decision systems against individuals who are members of protected classes, specifically in the contexts of lending, insurance, and healthcare services. It defines an 'automated decision system' as any computational process that aids in decision-making, including those utilizing AI and machine learning. Compliance is required from financial institutions, insurance companies, and healthcare providers, who must ensure their systems do not select individuals from protected classes at disproportionate rates compared to those not in these classes. Violations of this act will be considered unlawful discrimination under existing New Jersey law, specifically referencing P.L.1945, c.169. The bill is significant as it aligns with growing trends in other states to regulate AI and automated systems, ensuring fairness and accountability in their use.
Official Source
Official Bill Text
View S1402 on official legislature website →
Related Topics
Affected Industries
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