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Proposed California Regulations for Automated Decision-Making

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Proposed California Regulations for Automated Decision-Making


The California Consumer Privacy Protection Agency (CPPA) issued draft rulemaking on automated decision-making technologies as part of its implementing regulations under the California Consumer Privacy Act (as revised, CCPA).

The CCPA directs the CPPA to issue regulations on “Automated Decision-making technology” (ADT).1 Notably, in establishing regulations governing the use of ADT by businesses, the CPPA is imposing significant regulation on the use of artificial intelligence (AI). Specifically, the current draft ADT regulations, released November 27, 2023, define ADT as: any system, software or process—including one derived from machine-learning, statistics, or other data-processing or AI—that processes personal information and uses computation as whole or part of a system to make or execute a decision or facilitate human decision making.2 ADT also includes profiling, which is: “any form of automated processing of personal information to evaluate certain personal aspects relating to a natural person and in particular to analyze or predict aspects concerning that natural person’s performance at work, economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.”3

Under the current draft ADT regulations, businesses would be required to provide a pre-use notice to consumers about the businesses’ use of ADT, the consumers right to opt out, and to access information about how the business uses ADT. This pre-use notice must:

  • Be provided in the manner in which the business primarily interacts with the consumer, before the business processes the consumer’s personal information using ADT.
  • Have a plain language explanation of the purpose of the use of ADT.
  • Include a description of the consumer’s right to opt out and how the consumer may submit an opt-out request.
  • Include a description of the consumer’s right to access information about the use of ADT with respect to the consumer.
  • Feature a simple and easy-to-use method by which the consumer can obtain additional information about the business’s use of ADT, such as a layered notice or hyperlink.4

The draft ADT regulations would also require businesses to provide an option to opt out of the following uses of ADT:

  • Making a decision that produces legal or similarly significant effects concerning a consumer.
  • Profiling a consumer who is acting in their capacity as an employee, independent contractor, job applicant or student (like profiling employees using keystroke loggers).
  • Profiling a consumer while they are in a publicly accessible place (like using Wi-Fi, Bluetooth tracking, drones or geolocation to profile consumers in public).
  • Profiling a consumer for behavioral advertising (including opt-ins for consumers under 16).
  • Profiling a consumer that the business has actual knowledge of is under the age of 16.
  • Processing personal information of consumers to train ADT.5

The draft regulations include several exceptions to these opt-out rights, including where ADT is used for the prevention of security incidents, fraud or illegal actions, protecting consumer safety or in the event no reasonable alternative exists for processing.6

During the December meeting, the CPPA board noted concerns from both the public and board members over the broad definition of ADT as well as exceptions to ADT opt-out rights.

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Ultimately, the Board decided that the draft ADT regulations are not ready for formal rulemaking and sent the draft back to the New CPRA Rules Subcommittee (Rules Subcommittee) for further revision.7 This extends an already long process for issuance of the final regulation, which requires the Board to vote to move to formal rulemaking; the staff to prepare a draft and conduct an economic analysis; the Board to issue the draft regulation; the public comment period to be opened; and then the Board to finalize or modify the rule based on response to public comment.

We will continue to monitor developments in this space as well as the CPPA public meetings. Please contact a member of Akin’s cybersecurity, privacy and data protection team to learn more about how these incoming regulations may affect your company.


1 Cal. Civ. Code § 1798.185(a)(16).

2 Draft Automated Decisionmaking Technology Regulations § 7001.

3 Id.

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4 Id. § 7017. This additional information must also include a description of whether the technology has been evaluated for reliability or fairness, and the outcome of such information.

5 Id. § 7030.

6 Id. § 7030 (m).

7 Unlike other proposed regulations, the draft ADT regulations were submitted directly from the CPPA staff rather than the Rules Subcommittee.



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California

SpaceX launches 20 Starlink satellites from California (photos)

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SpaceX launches 20 Starlink satellites from California (photos)


SpaceX launched another batch of its Starlink internet satellites to orbit early Sunday morning (Nov. 24).

A Falcon 9 rocket carrying 20 Starlink spacecraft — 13 of which are capable of beaming service directly to smartphones — lifted off from California’s Vandenberg Space Force Base on Sunday at 12:25 a.m. EST (0525 GMT; 9:25 p.m. on Nov. 23 local California time). 

The Falcon 9’s first stage returned to Earth about eight minutes after liftoff as planned, touching down on the SpaceX droneship “Of Course I Still Love You” in the Pacific Ocean.

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The first stage of a SpaceX Falcon 9 rocket rests on the deck of a droneship shortly after launching 20 Starlink internet satellites to orbit from California’s Vandenberg Space Force Base on Nov. 24, 2024. (Image credit: SpaceX)

It was the 15th launch and landing for this particular booster, according to a SpaceX mission description. Twelve of those flights have been Starlink missions.

The Falcon 9’s upper stage hauled the 20 Starlink satellites to low Earth orbit, deploying them there about an hour after liftoff as planned, SpaceX reported in a post on X.

Sunday’s launch was the 115th Falcon 9 flight of the year. Nearly 70% of those liftoffs have been devoted to building out Starlink, the largest satellite constellation ever assembled.

The megaconstellation currently consists of more than 6,600 active satellites, and, as Sunday’s mission shows, it’s growing all the time.



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Northern California driver dies after vehicle found in floodwaters, 1 other found dead

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Northern California driver dies after vehicle found in floodwaters, 1 other found dead


PIX Now morning edition 11-23-24

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PIX Now morning edition 11-23-24

09:29

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SONOMA COUNTY – A man died when he was found in a flooded vehicle after an atmospheric river dumped heavy rain in Northern California, authorities said.

In Sonoma County’s Guerneville, first responders responded to a report around 11:30 a.m. Saturday for a vehicle that was seen in floodwaters near Mays Canyon Road and Highway 116.

The caller believed that at least one person was inside the vehicle.

When crews arrived, they said the vehicle was recovered but a man was pronounced dead at the scene. He has not been identified.

The Russian River, which flows through Guerneville, reached the flood stage on Friday evening and exceeded what was forecasted.

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This area went into a flood warning around 2 p.m. Friday and was still in place as of Saturday afternoon.

Guerneville is about 75 miles north of San Francisco.

Around 8:45 a.m. Saturday in Santa Rosa, a man was found dead in Piner Creek just south of Guerneville Road, the police department said. His death is being investigated. 

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Laura Richardson completes a political comeback, winning tight race to represent South L.A. in the California Capitol

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Laura Richardson completes a political comeback, winning tight race to represent South L.A. in the California Capitol


Laura Richardson emerged the victor of the competitive, costly and feisty election to win a South Los Angeles seat in the state Senate — completing her political comeback more than 10 years after a tumultuous tenure in the House of Representatives.

Richardson narrowly won the race against Michelle Chambers, a community justice advocate who faced accusations of misconduct in prior public office. The Associated Press called the race Friday after weeks of ballot counting.

The contest between two Democrats with similar social policies but differing views on crime and business attracted huge spending by special interests.

Independent expenditure committees poured more than $7.6 million into the race, making it the most expensive election for state Legislature this year, according to California Target Book, a political database. Negative campaigning dominated the race as business interests and labor unions battled for their favored candidate.

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Richardson, a moderate Democrat, will join a Democratic supermajority in the Legislature. But Republicans are on track to flip three legislative seats this year, one in the Senate and two in the Assembly.

Richardson’s biggest supporters were businesses, including PACs funded by oil companies, and law enforcement associations that said they advocated for candidates who shared their beliefs on free enterprise and public safety. Meanwhile, Chambers’ biggest portion of support came from healthcare workers and teachers unions, who spent millions of dollars backing her.

Chambers wrote in a statement she was “proud of the campaign we ran,” thanking supporters who canvassed, phone-banked or cast votes for her “vision of better jobs, better wages and a California that works for everybody, not just the wealthy and well-connected.”

“This was the closest state senate race in the state, but unfortunately it appears that we will fall just short of victory,” she added. “Our people-powered efforts were not quite enough to overcome millions of dollars in outside spending on lies from the oil and tobacco industry and their allies.“

Richardson will succeed Sen. Steven Bradford (D-Gardena) in the 35th District, which encompasses the cities of Carson, Compton and stretches down to the harbor. Bradford, who had endorsed Chambers, said he believed both candidates were “qualified to do the job.”

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Bradford, who championed reparations legislation during his tenure, hoped the future senator would be “willing to meet with all factions of the community, because it’s a great diverse need in this district.”

“I’m also deeply sad to see how negative this campaign was, probably one of the most negative campaigns I’ve experienced in my 30-plus years of being involved with elections,” he said. “I just hope that we can come together after such a negative campaign, regardless of who the victor is, and understand that we have to work together.”

Richardson and Chambers took aim at each other’s past controversies. For Chambers, who had picked up the endorsement of various state and local elected officials, opposition groups seized on a criminal misdemeanor charge from 30 years ago. She was also accused of bullying and intimidation from her time as a Compton City Council member, allegations that she has repeatedly denied.

Richardson faced criticism over her tenure in Congress, where a House Ethics Committee investigation found her guilty in 2012 of compelling congressional staff to work on her campaign. The committee report also accused Richardson of obstructing the committee investigation “through the alteration or destruction of evidence” and “the deliberate failure to produce documents.”

Richardson admitted to wrongdoing, according to the report, and accepted a reprimand and $10,000 fine for the violations. She previously said that during her time in Congress, Republicans frequently targeted members of the Black Caucus. After she lost her reelection bid for a fourth term, Richardson said she worked at an employment firm to improve her managerial skills and has recognized previous mistakes.

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“It’s been said voters are very forgiving, and if you stand up and you accept responsibility and you improve in the work that you do — we need people who’ve been through things, who understand what it’s like to have had difficulties,” she previously told The Times. “And so that’s exactly what I did. I didn’t shy away from it.”



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