(3) “Department” means the Department of Technology.
(5)“Substantial factor” means an element of a decisionmaking process that is capable of altering the outcome of the process.
(b) Following the adoption of regulations by the California Privacy Protection Agency pursuant to paragraph (16) of subdivision (a) of Section 1798.185 of the Civil Code, or following the enactment of similarly comprehensive statewide legislation that establishes a regulatory framework governing the
development and deployment of ADTs, whichever occurs sooner, the The department shall develop and adopt regulations to create an ADT ADS procurement standard.
(1) To develop regulations related to the ADT ADS procurement standard, the department shall consider principles and industry standards addressed in relevant publications, including, but not limited to, all of the
following:
(A) The Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People, published by the White House Office of Science and Technology Policy in October 2022.
(B) The Artificial Intelligence Risk Management Framework (AI RMF 1.0), released by the National Institute of Standards and Technology (NIST) in January 2023.
(C) The Risk Management Framework for the Procurement of Artificial Intelligence (RMF PAIS 1.0), authored by the AI Procurement Lab and the Center for Inclusive Change in 2024.
(D) The Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence Memorandum, published by the
Executive Office of the President, Office of Management and Budget, dated March 28, 2024.
(2) The ADT ADS procurement standard shall include all of the following:
(A) A detailed risk assessment procedure that analyzes all of the following:
(i) Organizational and supply chain governance associated with the ADT. ADS.
(ii) The purpose and use of the ADT. ADS.
(iii) Any known potential misuses or abuses of the ADT. ADS.
(iv) An assessment of the legality, traceability, and provenance of the data the ADT ADS uses and the legality of the output of the ADT.
ADS.
(v) The robustness, accuracy, and reliability of the ADT. ADS.
(vi) The interpretability and explainability of the ADT. ADS.
(B) Methods for appropriate risk controls between the state agency and ADT
ADS vendor, including, but not limited to, reducing the risk through various mitigation strategies, eliminating the risk, or sharing the risk.
(C) Adverse incident monitoring procedures.
(D) Identification and classification of prohibited use cases and applications of ADT
ADS
that the state shall not procure.
(E) A detailed equity assessment that analyzes, at a minimum, all of the following:
(i) The individuals and communities that will interact with the
ADT. ADS.
(ii) How the information or decisions generated by the ADT ADS will impact an individual’s rights, freedoms, economic status, health, health care, or well-being.
(iii) Any issues that may arise if the ADT ADS is inaccurate.
(iv) How users with diverse abilities will
interact with the user interface of the ADT ADS and whether the ADT ADS integrates and interacts with commonly used assistive technologies.
(F) An assessment that analyzes the level of human oversight associated with the use of ADT. ADS.
(G) Adherence to data minimization
standards, including that an ADT ADS vendor shall only use information provided by or obtained from an agency to provide the specific service authorized by the agency. Further, the data collected may not be used for training of proprietary vendor or third-party systems.
(3) In developing the ADT ADS procurement standard, the department shall do all of the following:
(A) Collaborate with organizations that represent state and local government
employees and industry experts, including, but not limited to, public trust and safety experts, community-based organizations, civil society groups, academic researchers, and research institutions focused on responsible ADT ADS
procurement, design, and deployment.
(B) Consult with the California Privacy Protection Agency.
(C) Solicit public comment on the ADT ADS procurement standard.
(4) (A) Subject to subparagraph (B), the department shall adopt regulations pursuant to this subdivision in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(B) Regulations adopted by the department pursuant
to subparagraph (A) shall be consistent with both not contradict either of the following:
(i) Regulations adopted by the California Privacy Protection Agency pursuant to paragraph (16) of subdivision (a) of Section 1798.185 of the Civil Code.
(ii) Statewide legislation that establishes a regulatory framework governing the development and deployment of ADTs. ADSs.
(5) Starting Commencing
January 1, 2026, and annually thereafter, the department shall review and update both of the following:
(A) The ADT ADS procurement standard.
(B) Regulations adopted pursuant to this subdivision.
(c) A Commencing January 1, 2027, a state agency shall not procure an ADT,
ADS, enter into a contract for an ADT,
ADS, or enter into a contract for any service that utilizes an ADT, ADS, prior to the adoption of regulations by the department pursuant to subdivision (b).
(d) A Commencing January 1, 2027, a state agency may enter into a contract for an ADT, ADS, or a service that utilizes an ADT
ADS only after the department has adopted regulations pursuant to subdivision (b) and only if the contract includes a clause that does all of the following:
(1) Provides a completed risk assessment of the relevant ADT ADS that analyzes the items included in subparagraph (A) of paragraph (2) of subdivision (b).
(2) Requires the state agency or the ADT ADS vendor, or both, to adhere to
appropriate procurement standards.
(3) Provides procedures for adverse incident monitoring.
(4) Requires authorization from the state agency before deployment of ADT ADS upgrades and enhancements.
(5) Requires the state agency or the ADT ADS
vendor, or both, to provide notice to individuals that would likely be affected by the decisions or outcomes of the ADT, ADS, and information about how to appeal or opt-out opt out of ADT ADS decisions or outcomes.
(6) Provides a termination right in the event of a significant breach of responsibility or violation by
the vendor.
(e) Subdivisions (c) and (d) do not apply to projects approved before January 1, 2027, through the annual budget process.