State agencies: automated decision systems.

Existing law establishes the Government Operations Agency (GovOps), and establishes within the agency the Department of Technology. Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law defines, for these purposes, an “automated decision system” as, among other things, a computational process that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons.

Existing law establishes various public assistance and social programs administered by state agencies, including the Department of Social Services and the Employment Development Department. Existing law provides for the licensure and regulation of specified professions and vocations by boards and bureaus within the Department of Consumer Affairs.

This bill would impose certain restrictions on the use of an automated decision system by a state agency to confer services, defined as, among other things, the issuance of professional licenses and provision of public benefits. Among the restrictions, the bill would include a prohibition on using an output from the system as the sole basis for an adverse service determination affecting a natural person, except as specified. The bill would require the state agency to verify the accuracy of the system’s outputs and to promote nondiscrimination in its use, as specified. The bill would require the director or designee of a state agency to provide for quality control review of the outputs, as specified, to assure acceptable accuracy.

This bill would authorize GovOps to develop, adopt, and make publicly available guidance for a state agency’s use of automated decision systems. The bill would require GovOps to notify the Joint Legislative Budget Committee before issuing the guidance. The bill would require GovOps to provide technical assistance to state agencies upon request. The bill would define terms for purposes of its provisions and would make related findings and declarations.

SECTION 1.

 The Legislature finds and declares all of the following:

(a) California’s residents and businesses increasingly conduct transactions at unprecedented speeds, with private sector services such as loan approvals, insurance applications, and consumer purchases now processed in minutes or seconds through automated systems. Government services have not kept pace with these technological advances, creating a disconnect between public expectations and the reality of government service delivery.

(b) Delays in processing professional license applications, credential verifications, and occupational certifications impose significant hardships on California residents. Nurses, teachers, contractors, cosmetologists, and other professionals face prolonged delays in receiving licenses necessary to begin or continue working, which creates economic hardship and workforce shortages. Businesses cannot operate while waiting for required professional credentials, and California’s economy suffers when qualified individuals are prevented from contributing their skills due to administrative backlogs.

(c) Automatic decisionmaking systems, when properly designed with appropriate safeguards, transparency measures, and human oversight mechanisms, have the potential to dramatically reduce processing times for routine governmental decisions while maintaining accuracy and fairness. These systems can enable state agencies to redirect limited staff resources from repetitive administrative tasks to complex cases requiring human judgment and to providing enhanced customer service.

(d) The deployment of automated decisionmaking technology in government services must be accompanied by robust protections to ensure equity, prevent algorithmic bias, protect individual privacy, and preserve meaningful human review and appeal rights. The benefits of speed and efficiency must not come at the expense of due process, equal protection, or the fundamental principle that government remains accountable to the people it serves.

(e) Authorizing state agencies to utilize automatic decisionmaking systems for professional licensing, occupational credentialing, and benefits determination in state-administered programs, subject to appropriate standards and oversight, will modernize California’s public service infrastructure, reduce administrative burdens on both government and residents, and ensure that government responsiveness reflects the technological capabilities and expectations of the twenty-first century.

(f) California operates over 40 professional licensing boards, bureaus, and programs under the Department of Consumer Affairs, regulating more than 200 occupations and professions. These entities process hundreds of thousands of license applications, renewals, and verifications annually. Automatic decisionmaking systems provide state agencies the technological means to meet statutory processing timelines while ensuring consistent and fair application of licensing criteria and professional standards.