Plain Language
Before deploying any permitted ADMS, the employer must complete an initial impact assessment at least 30 days before implementation, signed by both the designated human reviewer and a qualified independent auditor. The auditor independence requirement is strict: anyone who in the prior 5 years was involved in developing, deploying, or licensing the system, had an employment relationship with the developer/deployer, or had a direct or material indirect financial interest in such entities is disqualified. After the initial assessment, subsequent assessments must be conducted at least every 2 years and before any material changes. Each assessment must cover, in plain language: system objectives and their achievability; algorithm and training descriptions; testing for disparate impact across a detailed list of protected characteristics, accessibility limitations, privacy and job quality impacts, cybersecurity vulnerabilities, public health/safety risks, foreseeable misuse, and sensitive data handling; and an employee notification mechanism.
Statutory Text
(a) An employer seeking to use or apply an automated decision-making system permitted under Section 10 shall conduct an initial impact assessment, 30 days prior to implementation of the automated decision-making system, bearing the signature of: (1) one or more individuals responsible for meaningful human review of the system; and (2) an independent auditor. A person shall not be an independent auditor under this subsection if, at any point in the 5 years preceding the impact assessment, that person: (i) was involved in using, developing, offering, licensing, or deploying the automated decision-making system under review; (ii) had an employment relationship with a developer or deployer that uses, offers, or licenses the automated decision-making system under review; or (iii) had a direct or material indirect financial interest in a developer or deployer that uses, offers, or licenses the automated decision-making system under review. (b) Following the initial impact assessment, additional impact assessments shall be conducted at least once every 2 years and prior to any material changes to the automated decision-making system. Each impact assessment shall include, in plain language: (1) a description of the objectives of the automated decision-making system; (2) an evaluation of the system's ability to achieve those objectives; (3) a description and evaluation of the algorithms, computational models, and artificial intelligence tools used, including: (A) a summary of underlying algorithms and artificial intelligence tools; and (B) a description of the design and training to be used; (4) testing for: (A) disparate impact or discrimination based on protected characteristics, including, but not limited to discriminating against, persons based on their race, color, religious creed, national origin, sex, disability or perceived disability, gender identity, sexual orientation, genetic information, pregnancy or a condition related to pregnancy, ancestry, or status as a veteran and any actions to mitigate any impacts; (B) accessibility limitations for persons with disabilities; (C) privacy and job quality impacts, including wages, hours, and conditions and safeguards; (D) cybersecurity vulnerabilities and safeguards; (E) public health or safety risks; (F) foreseeable misuse and safeguards; and (G) use, storage, and control of sensitive or personal data; and (5) a notification mechanism for employees impacted by the use of the automated decision-making system.