Regulon — NJ-S-4867 · NJ S 4867 (Responsible AI & Workforce Protection)

Summary

Creates a comprehensive AI governance and workforce protection framework for New Jersey. Establishes the AI Horizon Fund, funded by a 5% assessment on gross AI operations revenue from AI infrastructure entities, to support workforce retraining, clean energy upgrades, and community resilience. 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. Requires employers with 100+ employees to file AI Impact Disclosures when AI deployments result in layoffs. Grants the Attorney General authority to investigate AI-driven discrimination and unreasonable AI workplace surveillance. Penalties range from $1,000 to $2,000 per violation for environmental and impact assessment violations.

Enforcement & Penalties

Enforcement Authority

The Department of Labor and Workforce Development or the Attorney General may bring civil actions via summary proceedings under the Penalty Enforcement Law of 1999 for violations of sections 6 and 7 (environmental reporting, community benefit agreements, and high-risk AI assessments). The Attorney General investigates complaints related to AI-driven discrimination, unreasonable AI workplace surveillance, and AI-related 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

For violations of sections 6 or 7: not less than $1,000 for a first violation and not more than $2,000 for a second or subsequent violation, collected via civil action by summary proceeding. For AI-driven discrimination and AI workplace surveillance violations, penalties are enforced under the Law Against Discrimination (P.L.1945, c.169) and the New Jersey Civil Rights Act (P.L.2004, c.143), which provide their own penalty and remedy structures. Penalties collected under section 8 are credited to the AI Horizon Fund.

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 · Deployer · General Consumer App

Section 4(a)-(b)

Plain Language

Establishes the AI Horizon Fund, a nonlapsing revolving fund for workforce retraining, clean energy infrastructure, and community resilience. AI infrastructure entities operating large-scale computing facilities in New Jersey must contribute 5% of their gross revenue from AI operations to the fund. The fund also receives penalty revenues and legislative appropriations. This is a mandatory revenue assessment, not a voluntary contribution.

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 a website section listing sectors at risk for AI-driven job displacement (updated quarterly), work with unions and community colleges to develop training and certification programs, provide 13 additional weeks of unemployment benefits for AI-displaced workers, and create AI-specific job placement programs. These are government-facing obligations — no private entity compliance action is required by this provision.

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;

Other · Deployer · Employment

Section 5(a)(6)-(7), 5(b)

Plain Language

Employers with 100 or more employees that deploy AI systems resulting in layoffs must file an AI Impact Disclosure with the Department of Labor. 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 pay supplemental contributions to the AI Horizon Fund based on the number of AI-attributable layoffs. The contribution schedule and payment mechanism will be developed by the Department. Firms with fewer than 100 employees are exempt from both the disclosure and supplemental contribution requirements.

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.

Other · Deployer · General Consumer App

Section 6(a)-(b)

Plain Language

AI infrastructure entities (companies operating large-scale AI computing facilities in New Jersey) must conduct an environmental impact assessment at initial deployment, with additional assessments required for any capacity expansion, all filed with the Department of Labor. They must also submit annual reports to the Department detailing energy consumption, water usage, and carbon emissions. The manner of reporting is determined by the Department. Violations are subject to $1,000–$2,000 civil penalties under section 8.

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 · General Consumer App

Section 6(c)

Plain Language

AI infrastructure entities must enter into community benefit agreements with affected municipalities at the time of initial deployment. These agreements must include an environmental and economic impact statement covering resources used in the AI implementation and an analysis of resulting employment and community benefits. The agreements must be filed with the Department of Labor. Violations are subject to $1,000–$2,000 civil penalties under section 8.

Statutory Text

Each AI infrastructure entity shall, at the time of initial deployment and annually thereafter, in a manner determined by the department: c. Enter into community benefit agreements with affected municipalities, and file the agreement with the department.

H-02 Non-Discrimination & Bias Assessment · H-02.3 · DeployerDeveloper · Automated Decisionmaking

Section 7(a)

Plain Language

Any AI system used in employment, housing, healthcare, education, criminal justice, or public services in New Jersey must undergo an algorithmic impact assessment before deployment. Unusually, the assessment is performed by the state Office of Information Technology rather than by the deployer or developer — the statute delegates the manner of assessment entirely to OIT. This creates a government gatekeeping function for high-risk AI deployment. Violations are subject to $1,000–$2,000 civil penalties under section 8.

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 · Automated Decisionmaking

Section 7(b)

Plain Language

High-risk AI systems must comply with existing ethical use and transparency requirements under New Jersey's P.L.2023, c.266 (the AI transparency provisions at C.56:8-166.4 et seq.). This is a cross-reference to existing law, not a new standalone obligation created by this act.

Statutory Text

High-risk AI systems implemented in New Jersey shall: b. Be subject to ethical use and transparency requirements pursuant to P.L.2023, c.266 (C.56:8-166.4 et seq.).

Other · EmploymentAutomated Decisionmaking

Section 9(a)-(b)

Plain Language

The Attorney General is authorized to investigate complaints about AI-driven discrimination (AI outputs exhibiting biases based on protected classes) and unreasonable AI workplace surveillance (AI-based monitoring of employee behavior, computer usage, and physical movements). Penalties are enforced under the existing Law Against Discrimination and New Jersey Civil Rights Act. While this provision defines two important concepts — AI-driven discrimination and AI workplace surveillance — it functions primarily as an enforcement hook activating existing anti-discrimination frameworks for AI contexts. It does not create a new affirmative compliance obligation beyond what those existing statutes already require.

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.