Automated decision systems.

Assembly Member Bauer-Kahan's comprehensive artificial intelligence legislation establishes new oversight requirements for automated decision systems (ADS) that impact critical aspects of Californians' lives, from employment and housing to healthcare and financial services.

The bill creates a regulatory framework requiring developers and deployers of ADS to conduct regular performance evaluations, submit to third-party audits, and provide affected individuals with detailed disclosures about how these systems influence consequential decisions. Starting January 1, 2027, deployers must inform subjects when an ADS is used, allow them to opt out in most cases, and provide opportunities to appeal decisions or correct personal information used by the system.

For systems affecting more than 5,999 people within a three-year period, the legislation mandates impact assessments every three years to evaluate accuracy, reliability, and potential disparate impacts on protected groups. Developers must document developer-approved uses and provide deployers with technical information needed for compliance, while deployers must maintain records of system usage, subject requests, and audit results.

The Attorney General, Civil Rights Department, and other specified public entities can bring civil actions for violations, with penalties up to $25,000 per incident. The bill exempts systems used solely for cybersecurity or aircraft operations and preserves existing rights and remedies under other laws. Performance evaluations and impact assessments submitted to the Attorney General remain confidential to protect trade secrets.

By amending the Unruh Civil Rights Act and government code provisions, the legislation integrates ADS oversight into California's existing civil rights framework while establishing new mechanisms for transparency and accountability in automated decision-making that affects Californians' fundamental opportunities and services.