WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a)–(h) "Algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a)" means the condition in which an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Bus. & Prof. Code § 22756(g), religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law. (b) "Automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b)" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisionsConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (c) "Consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c)" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties. (d) "DeployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d)" means a person, partnership, or corporation that uses an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) to make a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (e) "DeveloperDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e)" means a person, partnership, or corporation that designs, codes, or produces an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b), or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisionsConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c), whether for its own use or for use by a third party. (f) "Impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f)" means a documented risk-based evaluation of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) that meets the criteria of Section 22756.1. (g) "SexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Bus. & Prof. Code § 22756(g)" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation. (h) "Significant updateSignificant update"Significant update" means a new version, new release, or other update to an automated decision tool that includes changes to its use case, key functionality, or expected outcomes.Bus. & Prof. Code § 22756(h)" means a new version, new release, or other update to an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) that includes changes to its use case, key functionality, or expected outcomes.
Section 22756 establishes the defined terms used throughout the chapter. The key threshold concept is consequential decision, which scopes the entire bill to AI-driven decisions with legal, material, or similarly significant effects across eleven enumerated domains — employment, education, housing, utilities, family planning, healthcare, financial services, criminal justice, legal services, voting, and benefits access. The automated decision tool definition is narrower than a general AI definition: the system must use AI and must be specifically developed, marketed, or modified to make or control such consequential decisions. Deployer covers any entity that uses such a tool; developer covers any entity that designs, codes, produces, or substantially modifies one.
(a) 1 On or before January 1, 2025, and annually thereafter, a deployer of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) shall perform an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) for any automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) uses that includes all of the following: (1) A statement of the purpose of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) and its intended benefits, uses, and deployment contexts. (2) A description of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b)'s outputs and how they are used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (3) A summary of the type of data collected from natural persons and processed by the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) when it is used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (4) A statement of the extent to which the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d)'s use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) is consistent with or varies from the statement required of the developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) by Section 22756.3. (5) An analysis of potential adverse impacts on the basis of sexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Bus. & Prof. Code § 22756(g), race, or ethnicity that arise from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (6) A description of the safeguards implemented, or that will be implemented, by the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) to address any reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) arising from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) known to the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) at the time of the impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f). (7) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) will be used by a natural person, or monitored when it is used, to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (8) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) has been or will be evaluated for validity or relevance.
(b) 2 On or before January 1, 2025, and annually thereafter, a developer of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) shall complete and document an assessment of any automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) that it designs, codes, or produces that includes all of the following: (1) A statement of the purpose of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) and its intended benefits, uses, and deployment contexts. (2) A description of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b)'s outputs and how they are used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (3) A summary of the type of data collected from natural persons and processed by the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) when it is used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). (4) An analysis of a potential adverse impact on the basis of sexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Bus. & Prof. Code § 22756(g), race, or ethnicity that arises from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (5) A description of the measures taken by the developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) to mitigate the risk known to the developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) arising from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (6) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) can be used by a natural person, or monitored when it is used, to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c).
(c) 3 A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) shall, in addition to the impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) required by subdivisions (a) and (b), perform, as soon as feasible, an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) with respect to any significant updateSignificant update"Significant update" means a new version, new release, or other update to an automated decision tool that includes changes to its use case, key functionality, or expected outcomes.Bus. & Prof. Code § 22756(h).
(d) Subject to paragraph (2), this section does not apply to a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) with fewer than 25 employees. (2) This subdivision does not apply if the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) deploys an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) that impacts more than 999 people.
Section 22756.1 imposes annual impact assessment obligations on both deployers and developers of automated decision tools, with distinct content requirements for each role. Deployers must assess purpose, outputs, data types, consistency with the developer's intended-use statement, adverse impacts on the basis of sex, race, or ethnicity, discrimination safeguards, human oversight, and validity evaluation. Developers must document a parallel but slightly different set of elements focused on design-side risks and mitigation measures.
Both deployers and developers must perform additional impact assessments for any significant update. A small-employer exemption shields deployers with fewer than 25 employees unless the tool impacts more than 999 people.
(a) 4 A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) shall, at or before the time an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) is used to make a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c), notify any natural person that is the subject of the consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c) that an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) is being used to make, or be a controlling factor in making, the consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c).
(b)(1)–(2) 5 If a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c) is made solely based on the output of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b), a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) shall, if technically feasible, accommodate a natural person's request to not be subject to the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) and to be subject to an alternative selection process or accommodation. (2) After a request pursuant to paragraph (1), a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) may reasonably request, collect, and process information from a natural person for the purposes of identifying the person and the associated consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to, all of the following: (A) Pay or promotion. (B) Hiring or termination. (C) Automated task allocation. (2) Education and vocational training, including, but not limited to, all of the following: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism. (B) Accreditation. (C) Certification. (D) Admissions. (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging. (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation. (5) Family planning, including adoption services or reproduction services, as well as assessments related to child protective services. (6) Health care or health insurance, including mental health care, dental, or vision. (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor. (8) The criminal justice system, including, but not limited to, all of the following: (A) Risk assessments for pretrial hearings. (B) Sentencing. (C) Parole. (9) Legal services, including private arbitration or mediation. (10) Voting. (11) Access to benefits or services or assignment of penalties.Bus. & Prof. Code § 22756(c). If the person does not provide that information, the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) shall not be obligated to provide an alternative selection process or accommodation.
Section 22756.2 imposes two distinct individual-rights obligations on deployers. First, deployers must notify any natural person that an automated decision tool is being used to make or control a consequential decision about them, at or before the time the tool is used. Second, when a consequential decision is made solely based on the tool's output, the deployer must accommodate the individual's request to opt out and be subject to an alternative selection process — subject to technical feasibility and the individual providing sufficient identifying information.
(a) 6 A developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) shall provide a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) with a statement regarding the intended uses of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) and documentation regarding all of the following: (1) The known limitations of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b), including any reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) arising from its intended use. (2) A description of the type of data used to program or train the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (3) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) was evaluated for validity and explainability before sale or licensing.
(b) This section does not require the disclosure of trade secrets, as defined in Section 3426.1 of the Civil Code.
Section 22756.3 requires developers to provide deployers with an intended-use statement and documentation covering known limitations (including foreseeable algorithmic discrimination risks), the types of data used to program or train the tool, and the tool's pre-sale validity and explainability evaluations. A trade-secret carve-out in subdivision (b) protects developers from being compelled to disclose proprietary methods, though the substantive documentation obligations remain.
(a)–(b) 7 A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) shall establish, document, implement, and maintain a governance program that contains reasonable administrative and technical safeguards to map, measure, manage, and govern the reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) associated with the use or intended use of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (2) The safeguards required by this subdivision shall be appropriate to all of the following: (A) The use or intended use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (B) The deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d)'s or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e)'s role as a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e). (C) The size, complexity, and resources of the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e). (D) The nature, context, and scope of the activities of the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) in connection with the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (E) The technical feasibility and cost of available tools, assessments, and other means used by a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) to map, measure, manage, and govern the risks associated with an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (b) The governance program required by this section shall be designed to do all of the following: (1) (A) Designate at least one employee to be responsible for overseeing and maintaining the governance program and compliance with this chapter. (B) (i) An employee designated pursuant to this paragraph shall have the authority to assert to the employee's employer a good faith belief that the design, production, or use of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) fails to comply with the requirements of this chapter. (ii) An employer of an employee designated pursuant to this paragraph shall conduct a prompt and complete assessment of any compliance issue raised by that employee. (2) Identify and implement safeguards to address reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) resulting from the use or intended use of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b). (3) If established by a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d), provide for the performance of impact assessmentsImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) as required by Section 22756.1. (4) If established by a developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e), provide for compliance with Sections 22756.1 and 22756.3. (5) Conduct an annual and comprehensive review of policies, practices, and procedures to ensure compliance with this chapter. (6) Maintain for two years after completion the results of an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f). (7) Evaluate and make reasonable adjustments to administrative and technical safeguards in light of material changes in technology, the risks associated with the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b), the state of technical standards, and changes in business arrangements or operations of the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e).
(c) Subject to paragraph (2), this section does not apply to a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) with fewer than 25 employees. (2) This subdivision does not apply if the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) deploys an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) that impacts more than 999 people.
Section 22756.4 mandates that both deployers and developers establish, document, implement, and maintain a governance program with reasonable administrative and technical safeguards to map, measure, manage, and govern the foreseeable risks of algorithmic discrimination. The program must be proportionate to the tool's use, the entity's role, size, and complexity. The program must designate a compliance employee with authority to raise compliance concerns, require prompt internal investigation of concerns raised, provide for impact assessments, conduct annual policy reviews, retain impact assessment results for two years, and adjust safeguards in response to material changes. The same small-deployer exemption from § 22756.1 applies.
8 A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) shall make publicly available, in a readily accessible manner, a clear artificial intelligence policy that provides a summary of both of the following: (a) The types of automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) currently in use or made available to others by the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e). (b) How the deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) manages the reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a) that may arise from the use of the automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) it currently uses or makes available to others.
Section 22756.5 requires both deployers and developers to publish a clear, publicly accessible AI policy summarizing the types of automated decision tools in use or offered and how they manage the foreseeable risks of algorithmic discrimination. This is a public-transparency obligation distinct from the confidential regulatory submission required by § 22756.7.
9 A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) shall not use an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b) in a manner that contributes to algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, sex, religion, age, national origin, limited English proficiency, disability, veteran status, genetic information, or any other classification protected by state law.Bus. & Prof. Code § 22756(a).
Section 22756.6 is the bill's substantive non-discrimination rule: deployers may not use an automated decision tool in a manner that contributes to algorithmic discrimination. This is a standalone prohibition — distinct from the procedural obligation to assess for discrimination risks in the impact assessment — and creates direct liability for discriminatory deployment outcomes.
(a)–(c) 10 Within 60 days of completing an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) required by this chapter, a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or a developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) shall provide the impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) to the Civil Rights Department. (b) A deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) who violates this section shall be liable for an administrative fine of not more than ten thousand dollars ($10,000) in an administrative enforcement action brought by the Civil Rights Department. (c) The Civil Rights Department may share impact assessmentsImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) with other state entities as appropriate.
Section 22756.7 requires deployers and developers to submit their completed impact assessments to the Civil Rights Department within 60 days of completion. Violation of this submission obligation — distinct from the underlying obligation to perform the assessment — is punishable by an administrative fine of up to $10,000 per violation in an action brought by the department. The department may share assessments with other state entities.
(a)–(b) On and after January 1, 2026, a person may bring a civil action against a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) for a violation of this chapter. (2) A court may award to a prevailing plaintiff in an action brought pursuant to this subdivision all of the following: (A) Compensatory damages. (B) Injunctive relief. (C) Declaratory relief. (D) Reasonable attorney's fees and litigation costs. (b) (1) (A) Subject to paragraph (2), a person, before commencing an action pursuant to this section for injunctive relief, shall provide 45 days' written notice to a deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) or developer of the alleged violations of this chapter. (B) If the developerDeveloper"Developer" means a person, partnership, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by a third party.Bus. & Prof. Code § 22756(e) or deployerDeployer"Deployer" means a person, partnership, or corporation that uses an automated decision tool to make a consequential decision.Bus. & Prof. Code § 22756(d) demonstrates to the court within 45 days of receiving the written notice described in paragraph (1) that it has cured a noticed violation and provides the person who gave the notice an express written statement that the violation has been cured and that no further violations shall occur, a claim for injunctive relief shall not be maintained for the noticed violation. (2) This subdivision does not apply with respect to a violation that is substantially the same as a violation previously cured pursuant to this subdivision.
Section 22756.8 creates a private right of action effective January 1, 2026, for any violation of the chapter. Prevailing plaintiffs may recover compensatory damages, injunctive relief, declaratory relief, and reasonable attorney's fees and litigation costs. For injunctive-relief claims, a 45-day pre-suit written notice and cure period applies — if the deployer or developer demonstrates the violation has been cured and provides a written no-recurrence statement, the injunctive claim cannot be maintained. However, this cure defense does not apply to violations substantially the same as one previously cured.
A city or county shall not adopt, maintain, enforce, or continue in effect any law, regulation, rule, requirement, or standard related to the performance of an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of Section 22756.1.Bus. & Prof. Code § 22756(f) or governance program, or the equivalent thereof, of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Bus. & Prof. Code § 22756(b).
Section 22756.9 expressly preempts local governments from adopting or enforcing any law, regulation, rule, requirement, or standard related to the performance of impact assessments or governance programs — or their equivalents — for automated decision tools. This creates a uniform statewide framework and prevents fragmented local requirements.