An Act concerning discrimination and automated decision systems and supplementing P.L.1945, c.169 (C.10:5-1 et seq.).

• Authority: New Jersey
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Proposed
• Most recent activity date: 2022-02-10

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

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

• Governance failure

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has good coverage of approximately 3 subdomains, with strong focus on unfair discrimination (1.1), unequal performance across groups (1.3), and governance failure (6.5). Coverage is concentrated in discrimination and fairness domains related to automated decision 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

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

• Professional & Technical Services

All other sectors had no coverage in this document.

Sectors Summary

The document explicitly governs three sectors: Finance and Insurance (covering banks, lenders, credit institutions, and insurance companies), Health Care and Social Assistance (covering health care providers), and implicitly Professional and Technical Services (credit reporting agencies). The regulation focuses on preventing discrimination in automated decision-making within these sectors.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding legislative act from the New Jersey State Legislature with mandatory language, explicit enforcement mechanisms through existing discrimination law, and legal penalties for non-compliance.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: New Jersey State Legislature (Senate and General Assembly of the State of New Jersey)
• Summary: The document is enacted by the Senate and General Assembly of the State of New Jersey, as stated in the opening clause.

Target

• Entity Types: AI_Deployer
• Entities: Financial institutions (banks, banking organizations, credit reporting agencies, mortgage companies, lenders, credit institutions), insurance companies licensed in New Jersey, health care providers
• Summary: The act explicitly targets three categories of entities that use automated decision systems: financial institutions involved in lending, insurance companies, and health care providers. These entities are regulated in their use of automated decision systems.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: New Jersey Division on Civil Rights (implied through reference to P.L.1945, c.169)
• Summary: The act establishes that violations constitute unlawful discrimination under existing New Jersey law (P.L.1945, c.169 (C.10:5-12)), which is enforced by the New Jersey Division on Civil Rights, though this body is not explicitly named in the document.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: New Jersey Division on Civil Rights (implied through reference to P.L.1945, c.169)
• Summary: Monitoring responsibilities are implied through the incorporation of this act into existing discrimination law enforcement framework, though no explicit monitoring provisions are detailed in the document itself.

AI Lifecycle Stages

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

• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily focuses on the Deploy and Operate and Monitor stages, as it regulates the use of automated decision systems in production environments across financial services, insurance, and healthcare. It does not address earlier lifecycle stages such as planning, data collection, or model development.

Technical Scope

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

• AI Models
• AI Systems
• Predictive AI
• Task-specific AI

Technical Scope Summary

The document explicitly defines and covers 'automated decision systems' broadly, including systems derived from machine learning, statistics, or artificial intelligence. It does not specifically mention frontier AI, general purpose AI, foundation models, or compute thresholds, focusing instead on the functional use of automated systems in decision-making contexts.