Maryland 2024 Regular Session

Maryland Senate Bill SB957 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0957
6	6
7	7	SENATE BILL 957
8	8	K3 4lr2564
9	9	CF 4lr2562
10	10	By: Senator Hester
11	11	Introduced and read first time: February 2, 2024
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Labor and Employment – Automated Employment Decision Tools – Prohibition 2
19	19
20	20	FOR the purpose of prohibiting, subject to a certain exception, an employer from using an 3
21	21	automated employment decision tool to make certain employment decisions; 4
22	22	requiring an employer, under certain circumstances, to notify an applicant for 5
23	23	employment of the employer’s use of an automated employment decision tool within 6
24	24	a certain time period; and generally relating to automated employment decision 7
25	25	tools. 8
26	26
27	27	BY adding to 9
28	28	Article – Labor and Employment 10
29	29	Section 3–718 11
30	30	Annotated Code of Maryland 12
31	31	(2016 Replacement Volume and 2023 Supplement) 13
32	32
33	33	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
34	34	That the Laws of Maryland read as follows: 15
35	35
36	36	Article – Labor and Employment 16
37	37
38	38	3–718. 17
39	39
40	40	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 18
41	41	INDICATED. 19
42	42
43	43	(2) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 20
44	44	PROCESS THAT FACILIT ATES DECISION MAKING , INCLUDING DECISIONS DERIVED 21
45	45	FROM MACHINES , STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON PAP ER. 22
46	46
47	47	(3) “AUTOMATED EMPLOYMENT DECISION TOOL ” MEANS AN 23 2 SENATE BILL 957
48	48
49	49
50	50	ALGORITHMIC DECISION SYSTEM THAT AUTOMATI CALLY FILTERS: 1
51	51
52	52	(I) APPLICANTS OR POTENT IAL APPLICANTS FOR 2
53	53	EMPLOYMENT ; OR 3
54	54
55	55	(II) FOR A TERM, CONDITION, OR PRIVILEGE OF EMPLOYMENT 4
56	56	IN A WAY THAT ESTABL ISHES A PREFERRED AP PLICANT FOR EMPLOYME NT. 5
57	57
58	58	(4) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 6
59	59	LABOR. 7
60	60
61	61	(5) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 8
62	62
63	63	(I) RESULT IN UNLAWFUL D ISCRIMINATION; OR 9
64	64
65	65	(II) HAVE AN UNLAWFUL DISPARATE I MPACT ON AN INDIVIDU AL 10
66	66	OR A GROUP OF INDIVI DUALS ON THE BASIS O F AN ACTUAL OR PERCE IVED 11
67	67	CHARACTERISTIC . 12
68	68
69	69	(6) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 13
70	70	EVALUATION OF A SYST EM THAT EMPLOYS AN A LGORITHMIC DECISION SYSTEM. 14
71	71
72	72	(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , AN 15
73	73	EMPLOYER MAY NOT USE AN AUTOMATED EMPLOYM ENT DECISION TOOL TO : 16
74	74
75	75	(1) SCREEN APPLICANTS FO R EMPLOYMENT ; OR 17
76	76
77	77	(2) OTHERWISE HELP THE E MPLOYER DECIDE COMPE NSATION OR 18
78	78	OTHER TERMS , CONDITIONS, OR PRIVILEGES OF EMPLOYMENT IN THE STATE 19
79	79	REGARDING APPLICANTS FOR EMPLOYMENT . 20
80	80
81	81	(C) AN EMPLOYER MAY USE A N AUTOMATED EMPLOYME NT DECISION TOOL 21
82	82	IF: 22
83	83
84	84	(1) THE AUTOMATED EMPLOY MENT DECISION TOOL : 23
85	85
86	86	(I) WAS SUBJECT TO AN IM PACT ASSESSMENT DURI NG THE 24
87	87	YEAR THAT IMMEDIATELY PRECEDES THE DATE THE EMPLOYE R FIRST BEGINS 25
88	88	USING THE AUTOMATED EMPLOYMENT DECISION TOOL; AND 26
89	89
90	90	(II) IS SUBJECT TO AN IMP ACT ASSESSMENT EACH YEAR IT IS 27
91	91	USED BY THE EMPLOYER ; AND 28
92	92	SENATE BILL 957 3
93	93
94	94
95	95	(2) THE IMPACT ASSESSMEN TS REQUIRED UNDER IT EM (1) OF THIS 1
96	96	SUBSECTION DETERMINE T HAT USE OF THE AUTOM ATED EMPLOYMENT DECI SION 2
97	97	TOOL WOULD NOT INVOL VE A HIGH–RISK ACTION. 3
98	98
99	99	(D) IF AN EMPLOYER USES A N AUTOMATED EMPLOYME NT DECISION TOOL 4
100	100	UNDER SUBSECTION (C) OF THIS SECTION, WITHIN 30 DAYS AFTER THE USE O F THE 5
101	101	AUTOMATED EMPLOYMENT DECISION TOOL, THE EMPLOYER SHALL N OTIFY EACH 6
102	102	APPLICANT FOR EMPLOY MENT WITH RESPECT TO WHOM THE AUTOMATED 7
103	103	EMPLOYMENT DECISION TOOL WAS USED THAT : 8
104	104
105	105	(1) AN AUTOMATED EMPLOYM ENT DECISION TOOL WA S USED IN 9
106	106	CONNECTION WITH THE APPLICANT’S APPLICATION FOR EMPLOYMENT ; AND 10
107	107
108	108	(2) THE AUTOMATED EMPLOY MENT DECISION TOOL : 11
109	109
110	110	(I) WAS SUBJECT TO AN IM PACT ASSESSMENT UNDE R 12
111	111	SUBSECTION (C) OF THIS SECTION; AND 13
112	112
113	113	(II) ASSESSED THE JOB QUA LIFICATIONS OR CHARA CTERISTICS 14
114	114	OF THE APPLICANT . 15
115	115
116	116	(E) (1) AN EMPLOYER THAT VIOLATES THIS S ECTION SHALL BE 16
117	117	ASSESSED A CIVIL PEN ALTY OF: 17
118	118
119	119	(I) UP TO $500 FOR A FIRST VIOLATIO N; AND 18
120	120
121	121	(II) AT LEAST $500 BUT NOT EXCEEDING $1,500 FOR A SECOND 19
122	122	OR SUBSEQUENT VIOLAT ION. 20
123	123
124	124	(2) (I) EACH FAILURE OF AN EM PLOYER TO PROVIDE TH E NOTICE 21
125	125	REQUIRED UNDER SUBSE CTION (D) OF THIS SECTION WITH IN THE REQUIRED TIME 22
126	126	PERIOD IS A SEPARATE VIOLATION. 23
127	127
128	128	(II) EACH 30–DAY PERIOD THEREAFTE R IN WHICH NOTICE IS 24
129	129	NOT PROVIDED TO THE APPLICANT FOR EMPLOY MENT IS A SEPARATE V IOLATION. 25
130	130
131	131	(F) THE DEPARTMENT SH ALL ADOPT REGULATION S TO CARRY OUT THIS 26
132	132	SECTION, INCLUDING REGULATION S GOVERNING THE DEVE LOPMENT AND 27
133	133	PERFORMANCE OF IMPAC T ASSESSMENTS FOR AU TOMATED EMPLOYMENT 28
134	134	DECISION TOOLS . 29
135	135
136	136	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
137	137	October 1, 2024. 31
138	138