Regular Session 2023-2024 House Bill 1729 P.N. 2060

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.

20230HB1729PN2060 - 2 -

(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

20230HB1729PN2060 - 3 -

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.

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.

20230HB1729PN2060 - 4 -