Bill > A5430

Introduced Session

This bill directs the Director of the Division of Consumer Affairs in the Department of Law and Public Safety (director) to require certain businesses, or covered entities, as that term is defined in the bill, to conduct automated decision system and data protection impact assessments (impact assessments) of their automated decision system and information systems. The bill defines "automated decision system" as 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 and that impacts consumers. The bill defines "information system" as a process, automated or manual, that involves personally identifiable information, such as the collection, recording, organization, structuring, storage, alteration, retrieval, consultation, use, sharing, disclosure, dissemination, combination, restriction, erasure, or destruction of personally identifiable information and does not include automated decision systems. The bill provides that the impact assessments are to be submitted to the director. The impact assessments are to determine whether there are any biases relating to race or other factors within the automated decision system or if there are any threats to the security of a consumer's personally identifiable information within the information system. A covered entity may release the findings of the impact assessments to the public. The bill further provides that a waiver of the requirements of, or an agreement that does not comply with, the provisions of the bill between a covered entity and a consumer is to be void and unenforceable. The bill provides that, if the director determines, after reviewing the impact assessments and information submitted pursuant to the bill, that an interest of the residents of the State has been or is being threatened or adversely affected by a practice that violates the bill, the Attorney General of the State may institute civil action on behalf of the residents of the State in an appropriate district court of the United States to obtain appropriate relief. A violation of this bill's provisions is deemed an unlawful practice and a violation of the consumer fraud act, which includes a penalty of not more than $10,000 for the first offense and not more than $20,000 for the second and each subsequent offense.

Committee Categories

Herbert Conaway (D)*,  Britnee Timberlake (D)*,  Andrew Zwicker (D)*, 

Reported out of Assembly Comm. with Amendments, 2nd Reading (on 06/10/2019)

Official Document