SB 430 California Senate · 2025-2026 Regular Session

Local agencies: automated decision systems.

Summary

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 authorizes local agencies, including cities and counties, to provide welfare, employment, and other public social services. Existing law also authorizes the legislative body of any county or city, pursuant to specified procedures, to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes. This bill would impose certain restrictions on the use of an automated decision system by a local agency to confer supportive services, permits, or licenses, as specified. Among those restrictions, the bill would include a prohibition on using an output from the system as the sole basis for an adverse eligibility or benefit determination affecting a natural person, except as specified. The bill would require the local agency to verify the accuracy of the system's outputs and to promote nondiscrimination in its use, as specified. The bill would require the local agency's governing board to provide audits or other 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 local 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 local agencies upon request. The bill would define terms for purposes of its provisions and would make related findings and declarations.

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 18, 2025 Last action Feb 2, 2026

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What changed between versions

02/18/25 - Introduced → 01/05/26 - Amended Senate · 11 edits · Jan 5, 2026

MAJOR

SB 430 was substantially expanded from a simple legislative intent statement about reducing reporting burdens on local public sector workers into a full regulatory framework governing how local agencies may use automated decision systems (AI/algorithmic tools) to deliver supportive services, permits, and licenses. The amended bill adds an entirely new Chapter 5.7 to the Government Code with definitions, operational requirements, bias monitoring obligations, data safeguards, audit mandates, and a role for GovOps in issuing guidance and technical assistance.

SCOPE

Added a new Chapter 5.7 (Sections 51020-51023) to the Government Code creating a comprehensive regulatory framework for local agency use of automated decision systems in conferring supportive services, permits, and licenses.

The original bill's single-section intent statement about reducing reporting burdens was preserved but moved to the end of the bill, while the new findings and declarations section now includes specific references to CalFresh benefits, CSU admissions, building permits, CEQA exemptions, and the Housing Accountability Act as contexts where automated systems may be deployed.

DEFINITION

Defined key terms including 'artificial intelligence,' 'automated decision system' (a computational process from machine learning, statistical modeling, data analytics, or AI that materially impacts natural persons), 'local agency,' 'supportive services,' 'legally protected information,' and 'personally identifiable information.'

REQUIREMENT

Prohibited local agencies from using an automated decision system output as the sole basis for an adverse eligibility or benefit determination affecting a natural person, except as expressly authorized by federal or state law.

Required that any system output suggesting noneligibility or adverse action be reviewed by a human before any adverse action is taken, and that the system serve only as one factor in decisionmaking rather than a substitute for human judgment.

Required local agencies to verify accuracy of system outputs, monitor for bias based on race, sex, disability, immigration status, and other protected characteristics, and require complete application submissions before processing.

Required local agencies to safeguard personal information, protected health information, and legally protected information by prohibiting input into automated systems except where necessary for services administration, with access controls for third-party systems.

Required local agencies to provide a means to document or disclose that an automated decision system was used in a decision when its use is material, and to offer the public an opportunity to opt out of automated processing for supportive services determinations where possible.

ENFORCEMENT

Required local agency governing boards to provide initial and periodic audits or quality control reviews of automated decision system outputs (or a statistically valid sample) to assure acceptable accuracy.

Authorized the Government Operations Agency (GovOps) to develop and publish guidance on local agency use of automated decision systems, with a requirement to notify the Joint Legislative Budget Committee before issuing such guidance.

FISCAL

Authorized GovOps to provide technical assistance to local agencies upon request to help them comply with the new chapter.

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Full legislative history

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Committee

Amendments

Jan 5, 2026

Committee

Re-referred to Coms. on JUD. and L. GOV.

upper

Jan 5, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

upper

Feb 26, 2025

Committee

Referred to Com. on RLS.

upper

Feb 18, 2025

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 0 co-sponsors