WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
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.
(a)(i)–(ii) "algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i)" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individuals; and (ii) "state unitState unit"state unit" means the state and any governmental agency or political subdivision or public benefit corporation of the state.State Finance Law § 165(10)(a)(ii)" means the state and any governmental agency or political subdivision or public benefit corporation of the state.
(b) 1 When purchasing a product or service that is or contains an algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i) to be used by the state, a state unitState unit"state unit" means the state and any governmental agency or political subdivision or public benefit corporation of the state.State Finance Law § 165(10)(a)(ii) shall purchase a product or service that adheres to responsible artificial intelligence standards, including: (i) the avoidance of harm, including the minimization of: (A) risks of physical or mental injury; (B) the unjustified deletion or disclosure of information; and (C) the unwarranted damage to property, reputation, or environment; (ii) a commitment to transparency, including the full disclosure to the state unitState unit"state unit" means the state and any governmental agency or political subdivision or public benefit corporation of the state.State Finance Law § 165(10)(a)(ii) any algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i): (A) capabilities; (B) limitations; and (C) potential problems; (iii) giving primacy to fairness, including by taking actions to: (A) eliminate discrimination; (B) include equality, tolerance, respect for others, and justice as algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i) goals; and (C) provide an avenue for feedback to redress harms; and (iv) a comprehensive and thorough evaluation and analysis of the algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i)'s impact and potential risks.
(c) 2 The commissioner of taxation and finance shall adopt regulations to carry out this subdivision.
This section creates the bill's central obligation: state units must ensure that any product or service they purchase that is or contains an algorithmic decision system adheres to defined responsible AI standards. The standards cover four pillars — harm avoidance, transparency, fairness, and impact evaluation — each broken into specific sub-requirements. The harm-avoidance standard requires minimizing risks of physical or mental injury, unjustified information disclosure, and unwarranted property or reputational damage. The transparency standard requires full disclosure to the purchasing state unit of system capabilities, limitations, and potential problems. The fairness standard requires elimination of discrimination, incorporation of equality and justice as system goals, and provision of feedback mechanisms. The impact evaluation standard requires comprehensive risk and impact analysis.
The section also directs the Commissioner of Taxation and Finance to adopt implementing regulations, signaling that detailed procurement requirements will be developed through rulemaking rather than being fully specified in statute.
(a)–(b) 3 The term "unlawful discriminatory practice": (a) includes only those practices specified in sections two hundred ninety-six, two hundred ninety-six-a, two hundred ninety-six-c and two hundred ninety-six-d of this article; and (b) includes an act prohibited under paragraph (a) of this subdivision that is performed through an algorithmic decision systemAlgorithmic decision system"algorithmic decision system" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes a decision, or facilitates human decision making, in a manner that impacts individualsState Finance Law § 165(10)(a)(i), as defined under subdivision ten of section one hundred sixty-five of the state finance law.
This section expands the definition of unlawful discriminatory practice under New York's Executive Law to expressly include any act prohibited under the existing Human Rights Law (sections 296, 296-a, 296-c, and 296-d) when that act is performed through an algorithmic decision system. The practical effect is to close any interpretive gap that might allow a respondent to argue that automated discrimination falls outside the Human Rights Law's reach. No new category of discrimination is created — the amendment simply confirms that existing prohibitions apply regardless of whether the discriminatory act is carried out by a human or by an algorithm.
This act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
The act takes effect on the first of January following the date it becomes law. Because the bill has not yet been enacted, the precise effective date depends on when the governor signs it.