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State plans centralized AI compliance and small innovation team after new law; agencies face staffing and appeal costs

Joint Budget Committee · January 6, 2026
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Summary

OIT proposed a centralized compliance model to implement the state's AI law and asked for agency‑level staff (roughly 34 FTE across agencies) and OIT oversight to conduct risk assessments, audits and support appeals; a small innovation team would pilot agency use cases such as CDLE's IVR that cut contact‑center waits.

The Office of Information Technology and the Chief Data Office presented two related FY27 requests tied to recent state AI legislation. R01 asks for a centralized compliance program to help agencies meet requirements in the new statute (risk and impact assessments, audits, contract and procurement updates, and initial oversight of appeals and disclosures). The department said the bill's definitions of "machine learning" and "high‑risk" systems may sweep in legacy tools (including certain probation assessment software), which could create new appellate and staffing burdens for…

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