WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This act shall be known and may be cited as the "New Jersey Responsible AI Advancement and Workforce Protection Act."
Section 1 establishes the short title of the act as the "New Jersey Responsible AI Advancement and Workforce Protection Act." This is a title-only provision with no compliance obligations.
(a)–(i) The Legislature finds and declares: a. Artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means the development of software and hardware and the end-use application of technologies that are able to perform tasks normally requiring human intelligence, including, but not limited to, visual perception, speech recognition, decision-making, translation between languages, and generative artificial intelligence, which generates new content in response to user inputs of data.Section 3 (AI) is transforming the economy, the workforce, and people's daily lives. However, innovation without accountability risks leaving residents, workers, communities, and the environment behind. With appropriate policies, New Jersey can lead AI innovation with responsibility, equity, and foresight. b. As AI reshapes the economy, the development of a comprehensive legislative framework can ensure that workers are not casualties of technological progress. Investing in retraining and re-employment pathways for those displaced by AI, developing union-led apprenticeships, and enhancing community college programs will prepare residents of the State for the jobs of tomorrow: jobs that are resilient, dignified, and future-proof. AI businesses and developers will share in this framework by contributing to a training fund to enable these retraining and development programs, and employers deploying AI systems that result in layoffs will be held accountable through mandatory disclosures and additional contributions to this training fund. c. AI computing facilities consume enormous amounts of energy and water, placing additional burdens on existing infrastructure and the taxpayers whose dollars fund that infrastructure. Environmental impact assessments for large-scale AI infrastructure projects help enable development that is sustainable and community-informed. Creating consistent community review processes and developing incentives for clean energy solutions like battery storage, geothermal, and nuclear to power AI help drive sustainability. With these policies, New Jersey can be a model for how states balance technological growth with environmental stewardship and infrastructure resilience. d. AI should serve the public good and not undermine civil rights or privacy. In that regard, high-risk AI systemsHigh-risk AI system"High-risk AI system" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.Section 3 used in housing, employment, healthcare, and policing will be subject to algorithmic impact assessments before deployment and intrusive surveillance and automated workplace management policies will be subject to further public review and strict limitations. e. Public trust begins with public oversight. Providing the Attorney General with the authority to investigate AI-driven discriminationAI-driven discrimination"AI-driven discrimination" means output resulting from AI systems that exhibit biases against individuals based on age, race, religion, or other protected classes.Section 9(b) and enforce penalties for civil rights violations will ensure proper oversight in this developing area. f. Local communities should have a voice in decision-making, with community benefit agreementsCommunity benefit agreement"Community benefit agreement" means a comprehensive agreement developed in cooperation between an AI infrastructure entity and an impacted municipality or other political subdivision of the State which provides an environmental and economic impact statement regarding the resources used in the AI implementation and an analysis of the resulting employment and secondary community benefits associated with the AI implementation.Section 3 ensuring that AI uplifts neighborhoods rather than exploiting them. g. AI implementations and their corporate sponsors must disclose their environmental and economic footprint to allow municipalities to negotiate fair terms. Those municipalities should be empowered to shape how AI impacts the community's future, rather than passively accepting corporate development. To assist in this empowerment, funds should be invested directly in community resilience supporting infrastructure, education, and local workforce development. h. Innovation must uplift, not replace the people who built the economy. i. It is therefore an appropriate public purpose to establish an integrated AI strategy for New Jersey that includes incentives for innovation tied to community involvement, responsible funding, worker protections, and sustainable infrastructure usage.
Section 2 sets forth the Legislature's findings and declarations concerning AI's impact on the economy, workforce, environment, civil rights, and communities. It articulates the policy rationale for the bill's worker protection, environmental accountability, civil rights enforcement, and community engagement provisions. No compliance obligations are created by this section.
As used in this act: "AI infrastructure entityAI infrastructure entity"AI infrastructure entity" means any company operating large-scale AI computing facilities within this State.Section 3" means any company operating large-scale AI computing facilities within this State. "Artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means the development of software and hardware and the end-use application of technologies that are able to perform tasks normally requiring human intelligence, including, but not limited to, visual perception, speech recognition, decision-making, translation between languages, and generative artificial intelligence, which generates new content in response to user inputs of data.Section 3" or "AI" means the development of software and hardware and the end-use application of technologies that are able to perform tasks normally requiring human intelligence, including, but not limited to, visual perception, speech recognition, decision-making, translation between languages, and generative artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means the development of software and hardware and the end-use application of technologies that are able to perform tasks normally requiring human intelligence, including, but not limited to, visual perception, speech recognition, decision-making, translation between languages, and generative artificial intelligence, which generates new content in response to user inputs of data.Section 3, which generates new content in response to user inputs of data. "Community benefit agreementCommunity benefit agreement"Community benefit agreement" means a comprehensive agreement developed in cooperation between an AI infrastructure entity and an impacted municipality or other political subdivision of the State which provides an environmental and economic impact statement regarding the resources used in the AI implementation and an analysis of the resulting employment and secondary community benefits associated with the AI implementation.Section 3" means a comprehensive agreement developed in cooperation between an AI infrastructure entityAI infrastructure entity"AI infrastructure entity" means any company operating large-scale AI computing facilities within this State.Section 3 and an impacted municipality or other political subdivision of the State which provides an environmental and economic impact statement regarding the resources used in the AI implementation and an analysis of the resulting employment and secondary community benefits associated with the AI implementation. "DepartmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3" means the Department of Labor and Workforce Development. "Gross revenue from AI operationsGross revenue from AI operations"Gross revenue from AI operations" means sales revenue derived from the sale of AI services sourced from AI computing facilities in the State.Section 3" means sales revenue derived from the sale of AI services sourced from AI computing facilities in the State. "High-risk AI systemHigh-risk AI system"High-risk AI system" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.Section 3" means any AI system used in employment, housing, healthcare, education, criminal justice, or public services.
Section 3 defines key terms used throughout the act, including "AI infrastructure entity," "artificial intelligence," "community benefit agreement," "department," "gross revenue from AI operations," and "high-risk AI system." These definitions are foundational to the obligations imposed in subsequent sections. Notably, "high-risk AI system" is defined very broadly as any AI system used in employment, housing, healthcare, education, criminal justice, or public services — without additional narrowing criteria such as decision-making impact or automation level.
(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) 1 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 operationsGross revenue from AI operations"Gross revenue from AI operations" means sales revenue derived from the sale of AI services sourced from AI computing facilities in the State.Section 3; (2) penalties and fees collected by the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3 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.
Section 4 establishes the AI Horizon Fund as a dedicated, nonlapsing, revolving fund within the Department of Labor and Workforce Development, administered by the New Jersey Economic Development Authority and managed by the State Treasurer. The fund supports workforce retraining, clean energy upgrades for AI infrastructure, and community resilience initiatives. The primary funding mechanism is a 5% assessment on gross revenue from AI operations imposed on AI infrastructure entities operating in New Jersey, supplemented by penalties, legislative appropriations, and investment returns.
(a)(1)–(5) 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;
(a)(6) 2 develop an AI Impact Disclosure that employers deploying AI systems that results in layoffs shall file with the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3. 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;
(a)(7) 3 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.
Section 5 imposes duties on the Department of Labor and Workforce Development to establish an AI Worker Protection website section, engage with unions and community colleges on training programs, provide enhanced unemployment benefits for AI-displaced workers, develop job placement programs, and create an AI Impact Disclosure form. It also requires the department to develop a supplemental contribution schedule for the AI Horizon Fund based on AI-related layoffs. The only obligation that falls on private employers — the AI Impact Disclosure requirement — applies only to firms with 100 or more employees. The disclosure must include the AI deployment date, layoff date, and number of displaced workers.
(a) 4 Conduct an environmental impact assessment and provide an additional environmental impact assessment with any capacity expansion, and file the assessment with the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3;
(b) 5 Submit annual reports to the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3 detailing energy consumption, water usage, and carbon emissions;
(c) 6 Enter into community benefit agreementsCommunity benefit agreement"Community benefit agreement" means a comprehensive agreement developed in cooperation between an AI infrastructure entity and an impacted municipality or other political subdivision of the State which provides an environmental and economic impact statement regarding the resources used in the AI implementation and an analysis of the resulting employment and secondary community benefits associated with the AI implementation.Section 3 with affected municipalities, and file the agreement with the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3.
Section 6 imposes three ongoing obligations on AI infrastructure entities: (1) conducting and filing environmental impact assessments at initial deployment and annually thereafter, with additional assessments required upon capacity expansion; (2) submitting annual reports to the department on energy consumption, water usage, and carbon emissions; and (3) entering into community benefit agreements with affected municipalities and filing those agreements with the department. These obligations are enforceable under the penalty provisions of section 8.
(a) 7 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.
(b) 8 Be subject to ethical use and transparency requirements pursuant to P.L.2023, c.266 (C.56:8-166.4 et seq.).
Section 7 imposes two requirements on high-risk AI systems implemented in New Jersey. First, they must undergo algorithmic impact assessments prior to deployment, conducted by the Office of Information Technology in the Department of the Treasury. Second, they must comply with the existing ethical use and transparency requirements under P.L.2023, c.266 (C.56:8-166.4 et seq.). The first obligation is notable because the impact assessment is conducted by a state agency rather than by the deployer, and the manner of assessment is delegated entirely to OIT. The second obligation cross-references an existing statute without imposing additional standalone requirements.
Any person violating any of the provisions of sections 6 or 7 of this act shall be liable to a penalty of not less than $1,000 for a first violation and not more than $2,000 for a second or subsequent violation, to be collected in a civil action by a summary proceeding brought by the departmentDepartment"Department" means the Department of Labor and Workforce Development.Section 3 or the Attorney General under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
Section 8 establishes the penalty framework for violations of sections 6 (environmental and community benefit obligations of AI infrastructure entities) and 7 (high-risk AI system impact assessment requirements). Penalties range from not less than $1,000 for a first violation to not more than $2,000 for a second or subsequent violation, collectible by the department or Attorney General through civil summary proceedings under the Penalty Enforcement Law of 1999. This is an enforcement provision that does not create an independent compliance duty.
(a) 9 The Office of the Attorney General shall investigate complaints related to AI-driven discriminationAI-driven discrimination"AI-driven discrimination" means output resulting from AI systems that exhibit biases against individuals based on age, race, religion, or other protected classes.Section 9(b), unreasonable AI workplace surveillanceAI workplace surveillance"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.Section 9(b), 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 discriminationAI-driven discrimination"AI-driven discrimination" means output resulting from AI systems that exhibit biases against individuals based on age, race, religion, or other protected classes.Section 9(b)" means output resulting from AI systems that exhibit biases against individuals based on age, race, religion, or other protected classes. "AI workplace surveillanceAI workplace surveillance"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.Section 9(b)" 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.
Section 9 empowers the Office of the Attorney General to investigate complaints related to AI-driven discrimination, unreasonable AI workplace surveillance, and AI-related civil rights violations. Enforcement is through the existing Law Against Discrimination and the New Jersey Civil Rights Act. The section defines two key terms: "AI-driven discrimination" (biased AI outputs against protected classes) and "AI workplace surveillance" (use of AI to monitor employee behavior and performance). This provision is primarily an enforcement mechanism leveraging existing civil rights frameworks rather than creating new substantive standards for AI systems.
This act shall take effect 180 days after enactment, except that the Commissioner of Labor and Workforce Development and the Attorney General may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
Section 10 establishes that the act takes effect 180 days after enactment, with a carve-out permitting the Commissioner of Labor and Workforce Development and the Attorney General to take anticipatory administrative action necessary for implementation prior to the effective date.