Negotiate The Future

                STATE OF NEW YORK
        ________________________________________________________________________

                                          5429

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    February 14, 2025
                                       ___________

        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Labor

        AN ACT to amend the labor law, in relation to  requiring  certain  busi-
          nesses  to  conduct artificial intelligence impact assessments; and to
          amend the tax law, in relation to establishing a surcharge on  certain
          corporations  that  use artificial intelligence or data mining or have
          greater than fifteen employees displaced by artificial intelligence

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York workforce stabilization act".
     3    § 2. The labor law is amended by adding a new section 201-j to read as
     4  follows:
     5    § 201-j. Artificial intelligence impact assessments.  1.  No  employer
     6  shall  utilize or apply any artificial intelligence unless the employer,
     7  or an entity acting on behalf of such employer, shall have conducted  an
     8  impact  assessment for the application and use of such artificial intel-
     9  ligence. Following the first impact  assessment,  an  impact  assessment
    10  shall  be  conducted at least once every two years. An impact assessment
    11  shall be conducted prior to any material change to the artificial intel-
    12  ligence that may change the outcome  or  effect  of  such  system.  Such
    13  impact assessments shall include:
    14    (a) a description of the objectives of the artificial intelligence;
    15    (b)  an  evaluation  of  the ability of the artificial intelligence to
    16  achieve its stated objectives;
    17    (c) a description and evaluation of the objectives and development  of
    18  the artificial intelligence including:
    19    (i)  a  summary of the underlying algorithms, computational modes, and
    20  tools that are used within the artificial intelligence; and
    21    (ii) the design and training  data  used  to  develop  the  artificial
    22  intelligence process;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05440-01-5

        A. 5429                             2

     1    (d)  the  extent  to  which  the  deployment and use of the artificial
     2  intelligence requires input of sensitive and  personal  data,  how  that
     3  data is used and stored, and any control users may have over their data;
     4    (e)  an  estimate  of the number of employees already displaced due to
     5  artificial intelligence; and
     6    (f) an estimate of the number of employees expected to be displaced or
     7  otherwise affected due to the increased use of  artificial  intelligence
     8  in the workplace.
     9    2.  Any impact assessment conducted pursuant to this subdivision shall
    10  be submitted to the department at least thirty days prior to the  imple-
    11  mentation  of  the  artificial  intelligence that is the subject of such
    12  assessment.
    13    3. For the purposes of this section:
    14    (a) "Employer" means a business that: (i) is resident  in  the  state,
    15  (ii)  is  not  a small business, and (iii) employs more than one hundred
    16  people.
    17    (b) "Small business" means a business that: (i)  is  resident  in  the
    18  state,  (ii)  is independently owned and operated, (iii) is not dominant
    19  in its field, and (iv) employs one hundred or less people.
    20    § 3. The tax law is amended by adding a new section 186-h to  read  as
    21  follows:
    22    §  186-h.  Artificial  intelligence surcharge. 1. Imposition of worker
    23  displacement surcharge. (a) A surcharge on corporations  that  terminate
    24  the  employment  or  substantially  reduce  the hours of fifteen or more
    25  employees due to any system or process that  uses  algorithms,  computa-
    26  tional  models, artificial intelligence techniques, robotic hardware, or
    27  a combination thereof, to automate, support, or replace human  labor  is
    28  imposed  at the rate of two percent of the corporation's business income
    29  base.
    30    (b) The surcharge shall be reported and paid to  the  commissioner  no
    31  less frequently than on an annual basis.  The payments shall be accompa-
    32  nied  by a return in the form and containing the information the commis-
    33  sioner may prescribe.
    34    (c) The commissioner, in consultation with the  department  of  labor,
    35  may  waive  the surcharge set forth by paragraph (a) of this subdivision
    36  for an eligible corporation. The commissioner, in consultation with  the
    37  department  of  labor, shall establish a process whereby eligible corpo-
    38  rations may apply to have the surcharge waived. For the purposes of this
    39  section, an eligible corporation shall be:
    40    (i) A business that is found by the department of labor to be  experi-
    41  encing or anticipating a labor shortage;
    42    (ii)  A  business  that demonstrates that it requires the use of algo-
    43  rithms, computational models, artificial intelligence techniques, robot-
    44  ic hardware, or  a  combination  thereof,  to  protect  or  improve  the
    45  production of agricultural commodities within the state; or
    46    (iii)  A  small business, as defined by section one hundred thirty-one
    47  of the economic development law, that demonstrates that it requires  the
    48  use  of  algorithms, computational models, artificial intelligence tech-
    49  niques, robotic hardware, or a combination thereof,  to  remain  econom-
    50  ically viable.
    51    (d)  The  department of labor shall annually report to the legislature
    52  on the number of waivers that it has granted pursuant to  paragraph  (c)
    53  of this subdivision, in the preceding year and the justification for why
    54  each  waiver  was  granted.  Such  report shall be sent to the temporary
    55  president of the senate, the minority leader of the senate, the  speaker

        A. 5429                             3

     1  of  the  assembly,  and the minority leader of the assembly and shall be
     2  made available to the public on the website of the department.
     3    2.  Imposition  of  data  mining  surcharge. (a) A surcharge on corpo-
     4  rations that use artificial intelligence for data mining is  imposed  at
     5  the  rate  of two percent of the corporation's business income base. For
     6  the purposes of this subdivision, the term "data mining"  shall  mean  a
     7  process  involving pattern-based queries, searches, or other analyses of
     8  one or more electronic databases.
     9    (b) The surcharge shall be reported and paid to  the  commissioner  no
    10  less  frequently  than  on  an annual basis. Surcharge payments shall be
    11  accompanied by a return in the form and containing the  information  the
    12  commissioner may prescribe.
    13    3.  Applicable  provisions.  (a)  Except as otherwise provided in this
    14  section, the surcharges imposed under this section shall be administered
    15  and collected by the commissioner in a like manner as the taxes  imposed
    16  by  article  twenty-eight of this chapter. All the provisions of article
    17  twenty-eight of this chapter, including the provisions relating to defi-
    18  nitions, exemptions, returns, personal liability for the tax, collection
    19  of tax from the customer, payment of tax, and the administration of  the
    20  taxes  imposed  by  such  article, shall apply to the surcharges imposed
    21  under the authority of this section so far as those  provisions  can  be
    22  made  applicable  to  the  surcharges imposed by this section, with such
    23  modifications as may be necessary in order  to  adapt  the  language  of
    24  those  provisions  to  the  surcharges  imposed  by  this section. Those
    25  provisions shall apply with the same force and effect as if the language
    26  of those provisions had been set forth in full in this  section,  except
    27  to the extent that any of those provisions is either inconsistent with a
    28  provision of this section or is not relevant to the surcharge imposed by
    29  this  section. For purposes of this section, any reference in this chap-
    30  ter to a tax or the taxes imposed by article twenty-eight of this  chap-
    31  ter  shall  be  deemed  also  to refer to the surcharges imposed by this
    32  section unless a different meaning is clearly required.
    33    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    34  sion:
    35    (1)  the  exemptions provided for in section eleven hundred sixteen of
    36  this chapter, other than the exemptions in paragraphs one, two and three
    37  of subdivision (a) of such section, shall not apply  to  the  surcharges
    38  imposed by this section.
    39    (2)  the  credit provided in subdivision (f) of section eleven hundred
    40  thirty-seven of this chapter shall not apply to this section.
    41    4. Deposits of surcharge monies collected and received.  Notwithstand-
    42  ing any provision of law to the contrary, all surcharge monies collected
    43  and received by the commissioner under this section shall  be  deposited
    44  daily  to  the  credit  of the comptroller with those responsible banks,
    45  banking houses or trust companies the comptroller may  designate.  Those
    46  deposits  shall  be kept separate and apart from all other monies in the
    47  possession of the comptroller. The comptroller  shall  require  adequate
    48  security  from all such depositories. All surcharge monies collected and
    49  received under this section shall be paid to the department of labor  to
    50  be used, in a manner prescribed by the commissioner of the department of
    51  labor,  for  worker  retraining programs administered by the department,
    52  workforce development programs administered by the department or  to  be
    53  paid to the unemployment insurance fund.
    54    §  4.  This act shall take effect immediately; provided, however, that
    55  section three of this act shall take effect January 1, 2026.