Plain Language
Public entities may not implement an ABSDS for public benefits or services decisions unless the Department of Labor and Workforce Development has conducted and affirmed a pre-deployment impact assessment covering compliance with all substantive prohibitions, disparate impact analysis of training data across protected characteristics, and human oversight procedures — including protections against incorrect fraud-based benefit denials. Vendors must provide the department full system documentation, including design, training data, accuracy/error rate analysis, and quantified employment displacement estimates. Data access is restricted to authorized agents. Assessments must be completed within one year before deployment (one year after the effective date for existing systems), updated upon substantial modifications, and submitted with summaries to the department's public registry within 60 days. Vendor pays the department's assessment costs. The system may not operate until all requirements are met.
Statutory Text
A public entity, or vendor acting on behalf of a public entity, shall not implement the use an ABSDS, or use the ABSDS when making decisions regarding provision of public benefits or services to service beneficiaries, unless all of the following conditions are met: a. An objective and impartial impact assessment of the ABSDS, including an assessment of its economic impacts of factors such as wages, hours, benefits, work opportunities, and advancement, has been conducted by the department, in which the department determines and affirms in a report, with supporting documentation indicating: (1) that the ABSDS complies with the requirements of subsections a., b., k. and l. of section 2 of this act, including by requiring the implementation of effective procedures to remedy potential risks to the rights of service beneficiaries, including privacy, health and safety, dignity and autonomy, and to prevent inhibiting legally protected activity; (2) that the ABSDS complies with the requirements of subsection j. of section 2 of this act, including that the department, with respect to classifications and characteristics identified in that subsection of service beneficiaries, considers, identifies, and describes any disparities in the data used to train or develop the ABSDS that may result in the outputs of the ABSDS having a disparate, adverse impact on service beneficiaries, and that the department determines that the ABSDS includes provisions to effectively remedy any such disparate, adverse impact; and (3) that the ABSDS requires the implementation of effective procedures for monitoring, feedback, and ongoing human oversight, including full compliance with the requirements of section 9 of this act, as needed to prevent or remedy any potential discriminatory, biased, inaccurate, or harmful outcomes, including incorrect denials of public benefits or services based on mistaken claims of fraud by beneficiaries. b. The vendor has provided the department with access to all information needed to conduct the impact assessment of an ABSDS, including: (1) all documentation about its design and development, its technical specifications, the sources of data used to develop and train it, the individuals involved in its development, and a historical record of past versions of the ABSDS; (2) a detailed description of its intended purpose, deployment context, rationale for use, the categories, sources, and methods of data it utilizes; (3) outputs and the types of employment-related decisions in which such outputs may be used; (4) what the benefits and effects are of using the ABSDS to supplement non-automated decision-making, and the impacts its use may have on overall efficiency and output for the public entity that deploys it, including quantified estimates of: the amounts of savings for the public entity; any anticipated reductions of employment by the employer or public entity; any offset to the employment reductions caused by new employment related to the human oversight requirements of section 9 of this act; and the percentage of cost savings attributable to reductions of employment, and these estimates shall be featured prominently in the summary of the impact assessment submitted to the department pursuant to subsection e. of this section and section 4 of this act and included in the notices submitted to employees or service beneficiaries pursuant to section 6 of this act; and (5) an analysis of the accuracy, reliability, validity, and error rates of the ABSDS, including the reasonably foreseeable effects of tuning, retraining, or modification. c. The data and information used by the ABSDS shall be accessed only by authorized agents of the public entity or service beneficiary. d. The impact assessment shall be conducted not more than one year prior to deployment. For an ABSDS already in use on the effective date of this act, the impact assessment shall be completed within one year after the effective date. Impact assessments shall be updated upon any substantial change in the categories, sources, quotas, metrics, thresholds, or benchmarks used by the ABSDS, or any substantial modification, retraining, repurposing, or updating which may change outputs of an ABSDS. Any subsequent impact assessment or update conducted pursuant to this subsection shall be subject, in the same manner as an initial impact assessment, to all of the requirements of subsections a. b., and e. of this section. Until those requirements are met, the ABSDS shall not be permitted to operate. e. The report of the impact assessment shall include all of the information and data used in making its determinations, including the full data and information provided pursuant to subsections a. and b. of this section, and shall, within 60 days of its completion, be submitted in its entirety, together with an accessible summary of the report, to the department, for inclusion in a public registry of impact assessments maintained by the department, and to the vendor, who shall provide it to any public entity seeking to implement the ABSDS. Impact assessments in the public registry shall be made available to affected service recipients, entities, applicants for employment and their authorized representatives. f. The vendor shall pay the department the full amount of the direct costs of making the impact assessment of the ABSDS.