HB5116 - Automated Decision Tools Act

• Creates the Automated Decision Tools Act requiring deployers of automated decision tools to perform impact assessments by January 1, 2026, and annually thereafter, including analysis of potential adverse impacts based on protected characteristics.

• Requires deployers to notify individuals before using an automated decision tool to make consequential decisions and provide plain language descriptions of how the tool works, with an option to request alternative processes if the decision is solely automated.

• Mandates deployers establish governance programs with administrative and technical safeguards to address algorithmic discrimination, designate compliance officers, and maintain impact assessment results for 2 years.

• Requires deployers to submit impact assessments to the Department of Human Rights within 60 days of completion, with penalties of up to $10,000 per violation for non-compliance.

• Allows private civil actions starting January 1, 2027, against deployers for algorithmic discrimination causing actual harm, and authorizes the Attorney General to bring enforcement actions with a 45-day cure period before seeking injunctive relief.