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S 4867

Prohibits the application of fail-first or step therapy protocols to coverage for the diagnosis and treatment of serious mental health conditions

2025 Regular Session Introduced by Pat Fahy and 4 co-sponsors

New Jersey AI bill creates a framework to govern large-scale AI, fund worker retraining, require environmental and algorithmic oversight, and disclose impacts to protect communitie

REFERRED TO INSURANCE
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Bill Summary · S 4867

Summary — S4867 (Introduced Version)

Note: The bill metadata lists a title about prohibiting step-therapy for serious mental health conditions, but the text provided is a different measure — the “New Jersey Responsible AI Advancement and Workforce Protection Act.” This summary describes the AI bill text supplied.

Purpose

Establish a statewide framework to govern large-scale AI deployment in New Jersey that (1) protects workers and communities from disruptive economic and environmental impacts, (2) funds worker retraining and community resilience, (3) requires environmental and algorithmic oversight, and (4) increases transparency and accountability for AI infrastructure operators and employers that deploy AI resulting in layoffs.

Key provisions

  • Definitions: creates statutory meanings for “artificial intelligence,” “AI infrastructure entity” (companies operating large-scale AI computing facilities in the State), “high‑risk AI system” (used in employment, housing, healthcare, education, criminal justice, or public services), and “community benefit agreement.”
  • AI Horizon Fund:
    • Establishes a dedicated, nonlapsing revolving “AI Horizon Fund” administered by the Department of Labor & Workforce Development and managed by the EDA/Treasurer.
    • Authorized uses: workforce retraining and apprenticeship programs; clean-energy upgrades for AI infrastructure; community resilience initiatives.
    • Revenue sources: a 5% assessment on gross revenue from AI operations of AI infrastructure entities; penalties/fees collected under the act; legislative appropriations; and investment returns.
  • Worker protections and workforce development (Dept. of Labor responsibilities):
    • Create an “AI Worker Protection and Economic Adjustment” web section and maintain a quarterly-updated list of sectors at risk of AI-driven displacement.
    • Coordinate with unions and community colleges on training and AI-certification curricula; expand union-led apprenticeships.
    • Provide up to 13 additional weeks of unemployment benefits for workers displaced by AI in at‑risk sectors.
    • Require employers (100+ employees) that deploy AI causing layoffs to file an AI Impact Disclosure including deployment date, layoff date, and number displaced.
    • Require supplemental contributions to the AI Horizon Fund for layoffs attributable to AI; disclosure/contribution rules apply only to firms with 100+ employees.
  • Environmental and community review:
    • AI infrastructure entities must conduct environmental impact assessments at initial deployment and annually (text truncated in provided copy).
    • Encourage community benefit agreements between AI infrastructure entities and impacted municipalities, and require disclosure of environmental/economic footprints to enable municipal negotiation.
    • Promote incentives for clean energy solutions (battery storage, geothermal, nuclear) to power AI infrastructure.
  • Algorithmic oversight and civil rights enforcement:
    • Require algorithmic impact assessments for “high‑risk” AI systems in sensitive domains (housing, employment, healthcare, policing).
    • Limit intrusive surveillance and automated workplace management; provide for public review.
    • Empower the Attorney General to investigate AI-driven discrimination and enforce penalties for civil rights violations.

Who is affected

  • AI infrastructure entities (large-scale computing facilities) — subject to assessments, disclosures, environmental reviews, and the 5% revenue assessment.
  • Employers with 100+ employees deploying AI that causes layoffs — disclosure and supplemental payments.
  • Workers in sectors identified as at-risk — eligible for expanded unemployment benefits, retraining and placement services.
  • Municipalities and communities hosting AI infrastructure — gain negotiating power via required disclosures and community benefit agreements.
  • State agencies — Dept. of Labor, Economic Development Authority, Attorney General — charged with administration, oversight, and enforcement.

Timeline & procedural status

  • Introduced in the Senate: 2025-11-13; referred to Senate Labor Committee.
  • Legislative actions (per record): advanced to third reading (Mar 26, 2025); amended on third reading (May 7, 2025, amendment 4867A); referred to Insurance Committee (Feb 13, 2025); recorded as COMMITTED TO RULES on 2025-06-13.
  • Sponsors: Patricia Fahy (primary), Robert Jackson (cosponsor), Lea Webb (cosponsor).
  • Related/companion bills: A7522 (companion), S6688 (prior-session).

Notes & caveats

  • The provided text is truncated after part of Section 6; additional provisions, details on enforcement, penalties, assessments, and precise procedural mechanisms may be in later sections or amendments (e.g., 4867A). The summary reflects only the portions available in the supplied text.

Compiled from official sources — confirm details with the bill’s official record.

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