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

Summary

Establishes the New Jersey Responsible AI Advancement and Workforce Protection Act, covering two primary entity types: AI infrastructure entities operating large-scale computing facilities in New Jersey, and deployers of high-risk AI systems used in employment, housing, healthcare, education, criminal justice, or public services. AI infrastructure entities must conduct environmental impact assessments, submit annual energy/water/emissions reports, enter community benefit agreements, and pay a 5% assessment on gross AI operations revenue into the AI Horizon Fund. High-risk AI systems must undergo algorithmic impact assessments by the Office of Information Technology before deployment. Employers with 100+ employees deploying AI that results in layoffs must file AI Impact Disclosures and pay supplemental contributions. The Attorney General investigates AI-driven discrimination and workplace surveillance complaints. Violations of the environmental and impact assessment requirements carry civil penalties of $1,000–$2,000 per violation.

Enforcement & Penalties

Enforcement Authority

The Department of Labor and Workforce Development or the Attorney General may collect civil penalties for violations of sections 6 and 7 via summary proceeding under the Penalty Enforcement Law of 1999. The Attorney General investigates and enforces complaints related to AI-driven discrimination, unreasonable AI workplace surveillance, and civil rights violations under the Law Against Discrimination and the New Jersey Civil Rights Act. No private right of action is created by this act.

Penalties

Civil penalty of not less than $1,000 for a first violation of sections 6 or 7, and not more than $2,000 for a second or subsequent violation, collected via summary proceeding. For AI-driven discrimination and workplace surveillance violations (section 9), 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 remedy frameworks. Penalties and fees 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.

"High-risk AI system" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.

What Is Covered

"High-risk AI system" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.

Compliance Obligations 7 obligations · click obligation ID to open requirement page

Other · General Consumer App

Section 4(a)-(b)

Plain Language

AI infrastructure entities operating large-scale computing facilities in New Jersey must pay a 5% assessment on their gross revenue from AI operations into the AI Horizon Fund. The fund supports workforce retraining, clean energy upgrades for AI infrastructure, and community resilience initiatives. 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 must establish a website section listing sectors at risk for AI-driven displacement (updated quarterly), partner with unions on training programs, partner with community colleges on AI certification curricula, provide 13 additional weeks of unemployment benefits for AI-displaced workers, and develop job placement programs for those workers. These are governmental program mandates, not private-entity compliance obligations.

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 · 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, reporting at minimum the AI tool deployment date, the layoff date, and the number of displaced workers. These employers must also pay supplemental contributions to the AI Horizon Fund based on the number of AI-attributable layoffs. The Department will develop the specific disclosure form and contribution schedule. This creates both a reporting obligation and a financial obligation triggered by AI-related workforce reductions.

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 · General Consumer App

Section 6(a)-(c)

Plain Language

AI infrastructure entities must, at initial deployment and annually thereafter: (1) conduct and file environmental impact assessments with the Department (with additional assessments required for capacity expansions); (2) submit annual reports detailing energy consumption, water usage, and carbon emissions; and (3) enter into community benefit agreements with affected municipalities and file those agreements with the Department. The specific format and procedures will be determined by the Department. Violation carries 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; and 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 · DeployerGovernment · Automated Decisionmaking

Section 7(a)

Plain Language

All high-risk AI systems used in employment, housing, healthcare, education, criminal justice, or public services in New Jersey must undergo algorithmic impact assessments before deployment. Unlike most jurisdictions where the developer or deployer conducts the assessment, New Jersey assigns this responsibility to the Office of Information Technology within the Department of the Treasury. The specific assessment methodology will be determined by OIT. The practical compliance obligation for deployers is to submit their systems for assessment and not deploy until the assessment is complete. Violation carries 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 the ethical use and transparency requirements already established under P.L.2023, c.266 (the New Jersey AI transparency law, codified at C.56:8-166.4 et seq.). This provision creates no new obligation — it confirms the applicability of existing law to high-risk AI systems covered 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.).

H-02 Non-Discrimination & Bias Assessment · H-02.1 · Deployer · Automated DecisionmakingEmployment

Section 9(a)-(b)

Plain Language

The Attorney General has authority to investigate complaints about AI-driven discrimination (AI systems producing biased outputs against protected classes) and unreasonable AI workplace surveillance (AI monitoring of employee computer usage and physical movements). Enforcement is through the Law Against Discrimination and the New Jersey Civil Rights Act, both of which carry their own penalty frameworks. While this provision primarily establishes an enforcement mechanism, it implicitly creates an obligation for AI deployers to ensure their systems do not produce discriminatory outputs and that AI workplace surveillance is not unreasonable. The 'unreasonable' standard for workplace surveillance is undefined, leaving significant interpretive discretion to the Attorney General and courts.

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.