Assembly passes bill requiring state and local agencies to disclose AI tools and post impact assessments

The Assembly approved legislation directing state and local public agencies, school districts, SUNY/CUNY and other public entities to disclose automated decision‑making and artificial intelligence tools they use, publish impact assessments, and follow oversight guidance from the Office of Information Technology Services.

Sponsor Assemblymember Otis said the measure builds on prior year rules and aims to make public‑sector AI use transparent and safer. "AI is going to be with us," he said on the floor. "We need guardrails and transparency so governmental entities are using these tools intelligently."

Debate focused on where disclosures must be posted, whether posting should be per job listing or on agency websites, and how small municipalities and school districts will meet compliance and monitoring costs. Lawmakers asked whether job postings on third‑party sites like Indeed must carry AI disclosures; Otis said the primary obligation is that the governmental entity post the tools on its website and provide impact assessments, and that oversight will include redaction options for sensitive situations.

Several members asked about staffing and appropriations to help local governments comply. Otis responded there is no specific appropriation in the bill but argued that agencies should assume responsibility when choosing to deploy such tools and noted private market solutions exist for monitoring and impact assessment. He said the bill models language agreed in a chapter‑amendment process on earlier employment‑related AI disclosure rules.

The Assembly passed the bill overwhelmingly, 142–0. Sponsors said next steps include guidance from the state Office of Information Technology Services to help agencies conform with the posting and assessment requirements.