Bill Summary – FastDemocracy

PRINTER'S NO.   2060
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                         HOUSE BILL
                         No. 1729
                                               Session of
                                                 2023
     INTRODUCED BY NEILSON, HOHENSTEIN, McNEILL, JAMES, SANCHEZ,
        DELLOSO AND WARREN, SEPTEMBER 29, 2023
     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, SEPTEMBER 29, 2023
                                    AN ACT
 Amending the act of October 27, 1955 (P.L.744, No.222), entitled
    "An act prohibiting certain practices of discrimination
    because of race, color, religious creed, ancestry, age or
    national origin by employers, employment agencies, labor
    organizations and others as herein defined; creating the
    Pennsylvania Human Relations Commission in the Governor's
    Office; defining its functions, powers and duties; providing
    for procedure and enforcement; providing for formulation of
    an educational program to prevent prejudice; providing for
    judicial review and enforcement and imposing penalties,"
    further providing for definitions; providing for use of
    automated employment decision tool; and further providing for
    civil penalties.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    Section 4 of the act of October 27, 1955
 (P.L.744, No.222), known as the Pennsylvania Human Relations
 Act, is amended by adding clauses to read:
    Section 4.    Definitions.--As used in this act unless a
 different meaning clearly appears from the context:
    * * *
    (bb)    The term "automated employment decision tool" means any
 system the function of which is governed by statistical theory,
 or systems the parameters of which are defined by systems,
 including inferential methodologies, linear regression, neural
 networks, decision trees, random forests and other learning
 algorithms, which automatically filter individuals or
 prospective individuals for employment or for any term,
 condition or privilege of employment in a way that establishes a
 preferred individual or individuals. The term does not include a
 tool that does not automate, support, substantially assist or
 replace discretionary decision-making processes and that does
 not materially impact natural persons, including, but not
 limited to, a junk email filter, firewall, antivirus software,
 calculator, spreadsheet, database, data set or other compilation
 of data.
    (cc)    The term "bias audit" means an impartial evaluation by
 an independent auditor, including, but not limited to, testing
 of an automated employment decision tool to assess the tool's
 disparate impact on individuals protected against discrimination
 under the provisions of this act.
    (dd)    The term "employment decision" means to screen
 individuals for employment or promotion or to otherwise help to
 decide compensation or any other terms, conditions or privileges
 of employment in this Commonwealth.
    Section 2.    The act is amended by adding a section to read:
    Section 5.4.    Use of Automated Employment Decision Tool.--(a)
 An employer or employment agency that uses an automated
 employment decision tool to make or assist in making an
 employment decision shall:
    (1)     Notify each individual at least ten days prior to their
 interview that an automated employment decision tool may be used
 to make or assist in making an employment decision.
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    (2)   Provide each individual with information at least ten
 days prior to their interview explaining how the automated
 employment decision tool works and what general types of
 characteristics it uses to evaluate individuals for an
 employment decision.
    (3)   Obtain, prior to the interview, the individual's consent
 to use an automated employment decision tool to make or assist
 in making an employment decision.
 An employer or employment agency may not use an automated
 employment decision tool to evaluate individuals who have not
 consented to the use of an automated employment decision tool.
    (b)   An automated employment decision tool shall not be used
 to make or assist in making an employment decision unless the
 automated employment decision tool has been the subject of a
 bias audit conducted no more than one year prior to the use of
 the tool and a summary of the results of the most recent bias
 audit has been made available on the employer's or employment
 agency's publicly accessible Internet website.
    Section 3.   Section 9.3 of the act is amended to read:
    Section 9.3.   Civil Penalties.--(a)   The Commission shall
 have the power to adopt a schedule of civil penalties for
 violation of section 5(h)(5) by the advertiser and the publisher
 in instances where the complainant does not take action to
 secure housing accommodations or financing and is not denied
 housing accommodations or financing based on the alleged
 discriminatory language in the advertisement. The schedule of
 penalties, guidelines for their imposition and procedures for
 appeal shall be published in the Pennsylvania Bulletin, provided
 that the Commission shall, within two (2) years of such
 publication, promulgate a regulation setting forth the schedule
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 of penalties, guidelines and procedures. Any such penalty shall
 not exceed the sum of five hundred dollars ($500.00). Duly
 authorized agents of the Commission shall have the power and
 authority to issue citations and impose penalties for any such
 violations. Any such penalty imposed may be appealed to the
 Commission pursuant to regulations promulgated under this act.
 [All proceedings shall be conducted in accordance with the
 provisions of 2 Pa.C.S. (relating to administrative law and
 procedure).]
    (b)   The Commission shall have the power to adopt a schedule
 of civil penalties for violation of section 5.4(a) and (b) by an
 employer or employment agency. The schedule of penalties,
 guidelines for their imposition and procedures for appeal shall
 be published in the next available issue of the Pennsylvania
 Bulletin, provided that the Commission shall, within two years
 of such publication, promulgate a regulation setting forth the
 schedule of penalties, guidelines and procedures. Any such
 penalty shall not exceed the sum of five hundred dollars
 ($500.00) for a first violation and not less than five hundred
 dollars ($500.00) nor more than one thousand five hundred
 dollars ($1,500.00) for each subsequent violation. Duly
 authorized agents of the Commission shall have the power and
 authority to issue citations and impose penalties for any such
 violations. Any such penalty imposed may be appealed to the
 Commission pursuant to regulations promulgated under this act.
    (c)   All proceedings under this section shall be conducted in
 accordance with the provisions of 2 Pa.C.S. (relating to
 administrative law and procedure).
    Section 4.   This act shall take effect in 60 days.
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Statutes/Laws affected: 
Printer's No. 2060: P.L.744, No.222