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.
(9)(a)(i)–(ii) 9. 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(9)(a)(i) purchase. a. As used in this subdivision: (i) "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(9)(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(9)(a)(ii)" means the state and any governmental agency or political subdivision or public benefit corporation of the state.
(9)(b) 1 b. 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(9)(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(9)(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(9)(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(9)(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(9)(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(9)(a)(i)'s impact and potential risks.
(9)(c) 2 c. The commissioner of taxation and finance shall adopt regulations to carry out this subdivision.
This section creates a new procurement mandate for all state units — defined broadly to include the state itself, governmental agencies, political subdivisions, and public benefit corporations. When purchasing any product or service that is or contains an algorithmic decision system, the state unit must ensure the product adheres to responsible artificial intelligence standards spanning four domains: harm avoidance, transparency, fairness, and comprehensive impact evaluation.
The standards are principles-based rather than prescriptive: the bill enumerates categories (minimization of physical/mental injury risks, full disclosure of system capabilities and limitations, elimination of discrimination, feedback mechanisms for redress) but delegates operational specifics to regulations to be adopted by the Commissioner of Taxation and Finance. The rulemaking delegation is open-ended, with no deadline or prescribed content beyond carrying out the subdivision.
(4)(a)–(b) 3 4. 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(9)(a)(i), as defined under subdivision nine of section one hundred sixty-five of the state finance law.
This section amends the definition of unlawful discriminatory practice under New York Executive Law to explicitly encompass any prohibited discriminatory act performed through an algorithmic decision system. The amendment does not create new protected classes or new categories of prohibited conduct — it clarifies that existing prohibitions under Sections 296, 296-a, 296-c, and 296-d (covering employment, housing, public accommodations, credit, and other domains) apply equally when the discriminatory act is carried out by or through an algorithmic system.
The practical effect is to foreclose any defense that a discriminatory outcome was not an "act" because it was produced by an algorithm rather than a human decision-maker. Enforcement would operate through the existing Division of Human Rights complaint process and judicial review framework.
This act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
Standard effective-date provision: the act takes effect on the first of January next succeeding the date it becomes law. No staged implementation dates.