Laws & Statutes › NJ › NJ-S-1840
S-1840
NJ · State · USA
NJ
USA
● Pre-filed
Proposed Effective Date
2026-09-28
New Jersey Responsible AI Advancement and Workforce Protection Act (Senate No. 1840, 222nd Legislature)
Establishes a broad AI governance and workforce protection framework for New Jersey. Creates the AI Horizon Fund, financed by a 5% assessment on gross revenue from AI operations of AI infrastructure entities and supplemental contributions from employers with 100+ employees who lay off workers due to AI deployment. Requires AI infrastructure entities to conduct environmental impact assessments, submit annual energy/water/carbon reports, and enter community benefit agreements with affected municipalities. Mandates algorithmic impact assessments for high-risk AI systems used in employment, housing, healthcare, education, criminal justice, or public services, to be performed by the Office of Information Technology. Empowers the Attorney General to investigate AI-driven discrimination and unreasonable AI workplace surveillance. Civil penalties range from $1,000 (first violation) to $2,000 (subsequent violations) for infrastructure and high-risk AI system violations.
Passage Likelihood
Low
Chamber No passage
Committee No action
Majority party (No data)
Bipartisan No
Prior session None
Legislative History
2026-01-13 introduced Introduced in the Senate, Referred to Senate Labor Committee
Mapped Requirements
R-02 Regulatory Disclosure & Submissions H-02 Non-Discrimination & Bias Assessment
Official Sources
Full Text ↗
Entry Last Reviewed
2026-03-28
AI generated
Summary

Establishes a broad AI governance and workforce protection framework for New Jersey. Creates the AI Horizon Fund, financed by a 5% assessment on gross revenue from AI operations of AI infrastructure entities and supplemental contributions from employers with 100+ employees who lay off workers due to AI deployment. Requires AI infrastructure entities to conduct environmental impact assessments, submit annual energy/water/carbon reports, and enter community benefit agreements with affected municipalities. Mandates algorithmic impact assessments for high-risk AI systems used in employment, housing, healthcare, education, criminal justice, or public services, to be performed by the Office of Information Technology. Empowers the Attorney General to investigate AI-driven discrimination and unreasonable AI workplace surveillance. Civil penalties range from $1,000 (first violation) to $2,000 (subsequent violations) for infrastructure and high-risk AI system violations.

Enforcement & Penalties
Enforcement Authority
The Department of Labor and Workforce Development or the Attorney General may collect civil penalties for violations of sections 6 or 7 through summary proceedings under the Penalty Enforcement Law of 1999. The Attorney General independently investigates complaints related to AI-driven discrimination, unreasonable AI workplace surveillance, and civil rights violations, enforcing penalties under the Law Against Discrimination and the New Jersey Civil Rights Act. No private right of action is created by this act.
Penalties
Not less than $1,000 for a first violation and not more than $2,000 for a second or subsequent violation of sections 6 or 7, collected via civil summary proceeding. For AI-driven discrimination and civil rights violations (section 9), penalties are those available under the Law Against Discrimination (P.L.1945, c.169) and the New Jersey Civil Rights Act (P.L.2004, c.143), which may include compensatory damages, injunctive relief, attorney's fees, and civil penalties.
Who Is Covered
"AI infrastructure entity" means any company operating large-scale AI computing facilities within this State.
What Is Covered
"High-risk AI system" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.
Compliance Obligations 8 obligations · click obligation ID to open requirement page
Other · Employment
Section 4(a)-(b)
Plain Language
The bill creates the AI Horizon Fund, a nonlapsing revolving fund administered by the NJ Economic Development Authority. The fund is financed by a 5% assessment on the gross revenue from AI operations of AI infrastructure entities operating in New Jersey, plus penalties collected under the act, legislative appropriations, and investment returns. Funds are designated for workforce retraining and apprenticeship programs, clean energy upgrades for AI infrastructure, and community resilience initiatives. AI infrastructure entities must pay the 5% assessment as a continuing obligation.
Statutory Text
a. There is established in the Department of Labor and Workforce Development and administered by the New Jersey Economic Development Authority a dedicated, nonlapsing, revolving to be known as the AI Horizon Fund, to be managed and invested by the State Treasurer to: (1) support workforce retraining and apprenticeship programs; (2) invest in clean energy upgrades for AI infrastructure; and (3) fund community resilience initiatives in areas impacted by AI-related development. b. The fund shall be credited with: (1) contributions from AI infrastructure entities operating in New Jersey, based on a five percent assessment of gross revenue from AI operations; (2) penalties and fees collected by the department pursuant to section 8 of this act; (3) moneys as are appropriated by the Legislature; and (4) any return on investment of moneys deposited in the fund.
Other · Government · Employment
Section 5(a)(1)-(5)
Plain Language
The Department of Labor and Workforce Development must create an online AI Worker Protection section listing sectors at risk of AI-driven displacement (updated quarterly), work with unions to expand training programs, collaborate with community colleges on AI certification curricula, provide 13 additional weeks of enhanced unemployment benefits to workers displaced by AI, and develop job placement programs for displaced workers. These are government programmatic obligations, not private-sector compliance requirements.
Statutory Text
a. The Department of Labor and Workforce Development shall: (1) establish an AI Worker Protection and Economic Adjustment section on its website. That section shall include a list of sectors at risk for AI-driven displacement. The list shall be updated at least quarterly; (2) engage with registered unions to expand training programs specific to job roles within those organizations; (3) engage with community colleges to develop curricula around AI certification; (4) based on the list of at-risk sectors referenced in paragraph (1) of this subsection, provide enhanced unemployment benefits of 13 additional weeks for workers displaced by AI; (5) based on the list of at-risk sectors referenced in paragraph (1) of this subsection, develop specific job placement programs for workers displaced by AI;
R-02 Regulatory Disclosure & Submissions · R-02.1 · Deployer · Employment
Section 5(a)(6)-(7), 5(b)
Plain Language
Employers with 100 or more employees who deploy AI systems that result in layoffs must file an AI Impact Disclosure with the Department of Labor and Workforce Development. The disclosure must include, at minimum, the date the AI tool was deployed, the date of layoffs, and the number of workers displaced. These employers must also make supplemental contributions to the AI Horizon Fund based on the number of AI-attributable layoffs, according to a schedule the Department will develop. The 100-employee threshold is a firm-wide headcount, not limited to the affected division or location.
Statutory Text
(6) develop an AI Impact Disclosure that employers deploying AI systems that results in layoffs shall file with the department. This disclosure shall contain, at a minimum, the date on which the AI tool that resulted in layoffs was deployed, the date of layoffs, and the number of workers displaced by the AI tool deployment; and (7) develop a supplemental contribution schedule to the AI Horizon Fund based on the number of layoffs attributable to AI and develop a mechanism for assessment and payment of these assessments. b. The disclosure statements and supplemental contributions specified in paragraphs (6) and (7) of subsection a. of this section shall only be applicable to firms which have 100 or more employees.
R-02 Regulatory Disclosure & Submissions · R-02.1 · Deployer · Automated Decisionmaking
Section 6(a)-(b)
Plain Language
AI infrastructure entities must conduct and file an environmental impact assessment with the Department of Labor and Workforce Development at the time of initial deployment and annually thereafter, plus an additional assessment with any capacity expansion. They must also submit annual reports detailing energy consumption, water usage, and carbon emissions. The manner of filing is to be determined by the Department. These are ongoing reporting and filing obligations — not one-time requirements.
Statutory Text
Each AI infrastructure entity shall, at the time of initial deployment and annually thereafter, in a manner determined by the department: a. Conduct an environmental impact assessment and provide an additional environmental impact assessment with any capacity expansion, and file the assessment with the department; b. Submit annual reports to the department detailing energy consumption, water usage, and carbon emissions;
Other · Deployer · Automated Decisionmaking
Section 6(c)
Plain Language
AI infrastructure entities must enter into community benefit agreements with affected municipalities and file the agreements with the Department of Labor and Workforce Development. These agreements must include environmental and economic impact statements regarding resources used and an analysis of employment and secondary community benefits. This is a negotiated agreement obligation rather than a standard compliance filing.
Statutory Text
c. Enter into community benefit agreements with affected municipalities, and file the agreement with the department.
H-02 Non-Discrimination & Bias Assessment · H-02.3H-02.4 · DeployerGovernment · Automated Decisionmaking
Section 7(a)
Plain Language
All high-risk AI systems used in employment, housing, healthcare, education, criminal justice, or public services must undergo algorithmic impact assessments before deployment. Uniquely, the impact assessments are performed by the state's Office of Information Technology (OIT) — not by the deployer or developer — in a manner OIT will determine. This means entities deploying high-risk AI systems must submit their systems to OIT for assessment prior to going live. The statute does not specify the assessment methodology, timeline, or what documentation the deployer must provide to OIT, leaving those details to OIT rulemaking.
Statutory Text
High-risk AI systems implemented in New Jersey shall: a. Undergo algorithmic impact assessments prior to deployment. The Office of Information Technology in, but not of, the Department of the Treasury, shall perform the impact assessments, in a manner to be determined by the Office of Information Technology.
Other · Deployer · Automated Decisionmaking
Section 7(b)
Plain Language
High-risk AI systems implemented in New Jersey must comply with the existing ethical use and transparency requirements established under New Jersey's 2023 AI transparency law (P.L.2023, c.266). This provision does not create new substantive obligations but confirms that high-risk AI systems are subject to the requirements of that existing statute. Practitioners should review C.56:8-166.4 et seq. separately for those requirements.
Statutory Text
b. Be subject to ethical use and transparency requirements pursuant to P.L.2023, c.266 (C.56:8-166.4 et seq.).
Other · Automated DecisionmakingEmployment
Section 9(a)-(b)
Plain Language
The Attorney General is empowered to investigate complaints about AI-driven discrimination (AI outputs biased against protected classes) and unreasonable AI workplace surveillance (AI-based monitoring of employee activities and movements). Penalties are enforced under the existing Law Against Discrimination and the NJ Civil Rights Act. While this section defines AI-driven discrimination and AI workplace surveillance, it does not create new affirmative compliance obligations beyond the existing civil rights framework — rather, it confirms the AG's authority to apply existing civil rights law to AI contexts. Employers using AI for workplace monitoring or making decisions affecting individuals should ensure their systems do not produce discriminatory outputs and that surveillance is not unreasonable.
Statutory Text
a. The Office of the Attorney General shall investigate complaints related to AI-driven discrimination, unreasonable AI workplace surveillance, and claims of violations of civil rights protections related to AI. The Attorney General shall enforce penalties pursuant to the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.), and the "New Jersey Civil Rights Act," P.L.2004, c.143 (C.10:6-1 et seq.) for violations of this section. b. As used in this section: "AI-driven discrimination" means output resulting from AI systems that exhibit biases against individuals based on age, race, religion, or other protected classes. "AI workplace surveillance" means the use of AI to monitor and analyze employee behavior and performance through the use of technology tools that track employee activities including computer usage and physical movements.