California Senate Bill 1120 (2024)

• Authority: California
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Enacted
• Most recent activity date: 2024-09-30

Risk subdomain coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.

• Unfair discrimination and misrepresentation
• Unequal performance across groups
• Overreliance and unsafe use
• Loss of human agency and autonomy
• Lack of capability or robustness
• Lack of transparency or interpretability

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• Compromise of privacy

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has good coverage of approximately 6-7 subdomains, with strong focus on unfair discrimination (1.1), unequal performance across groups (1.3), lack of transparency (7.4), and lack of robustness (7.3). Coverage is concentrated in discrimination/toxicity and AI system safety domains, specifically addressing risks in healthcare AI utilization review systems.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• Finance & Insurance
• Health Care & Social Assistance

All other sectors had no coverage in this document.

Sectors Summary

The document exclusively governs the Health Care and Social Assistance sector, specifically regulating health care service plans and disability insurers that use AI for utilization review and management functions. The regulation is comprehensive and sector-specific.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding California state statute with mandatory requirements, enforcement mechanisms including administrative penalties, and regulatory oversight by state departments.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: California State Legislature; California Senate
• Summary: This is a California Senate Bill enacted by the California State Legislature, as indicated by the opening text 'THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS' and the designation 'California Senate Bill 1120 (2024)'.

Target

• Entity Types: AI_Deployer
• Entities: health care service plans; disability insurers; entities with which they contract for utilization review or utilization management functions; medical groups; independent practice associations
• Summary: The bill explicitly targets health care service plans and disability insurers that use AI for utilization review, as well as entities they contract with for these services.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: California Department of Managed Health Care (director); California Department of Insurance (commissioner); State Department of Health Care Services
• Summary: The bill designates specific state regulatory agencies with enforcement authority, including the power to assess administrative penalties and conduct compliance reviews.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: California Department of Managed Health Care (director); California Department of Insurance (commissioner); State Department of Health Care Services
• Summary: The same regulatory agencies responsible for enforcement also conduct monitoring through periodic onsite medical surveys, audits, and compliance reviews.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Plan and Design
• Collect and Process Data
• Verify and Validate
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily focuses on the Deploy and Operate and Monitor stages of the AI lifecycle, with specific requirements for AI systems used in healthcare utilization review. It addresses deployment requirements, ongoing monitoring, periodic review, and audit mechanisms. There is minimal coverage of earlier stages like planning, data collection, or model building.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• Task-specific AI

Technical Scope Summary

The document explicitly defines and covers artificial intelligence, algorithms, and software tools used for utilization review. It does not specifically mention frontier AI, general purpose AI, foundation models, or compute thresholds. The focus is on AI systems and tools applied in healthcare decision-making contexts.