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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

A fast-growing wildfire in windy Southern California triggers evacuations

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A fast-growing wildfire in windy Southern California triggers evacuations


RIVERSIDE, Calif. — A smoky and fast-growing wildfire Friday in windy Southern California has prompted multiple evacuation orders and warnings.

The Springs Fire broke out at around 11 a.m. Friday and by the evening had grown to about 5.47 square miles (14.17 square kilometers), with fire crews starting to contain it. The cause of the fire east of Moreno Valley in Riverside County is under investigation. It was not immediately known how many households are under evacuation warnings or orders.

The fire was burning in a populated — but not densely so — unincorporated part of Riverside County, in a recreational area near the city of Moreno Valley, which has a population of roughly 200,000. The city is 10 miles (16 kilometers) southeast of Riverside and 64 miles (103 kilometers) east of Los Angeles.

Springs Fire In Moreno Valley Explodes To Burn Over 3,500 Acres
A firefighting aircraft sprays red flame retardant at the site of the Springs Fire, on Friday.Qian Weizhong / VCG via Getty Images

“It’s windy out there,” said Maggie Cline De La Rosa, a public information officer for the California Department of Forestry and Fire Protection in Riverside County.

Alex Izaguirre, a spokesperson for the Cal Fire Riverside County, said the wind is “spreading the smoke,” prompting concerned calls from residents in neighboring cities who can see and smell the smoke.

The National Weather Service issued a wind advisory for San Bernardino and Riverside County valleys through Saturday afternoon, with gusts of up to 50 mph (80 kph) expected.

“Tree limbs could be blown down and a few power outages may result,” the advisory read.

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Doctors, nurses arrested in Southern California health care fraud investigation

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Doctors, nurses arrested in Southern California health care fraud investigation


LOS ANGELES — The U.S. Department of Justice on Thursday announced what they called a major health care fraud takedown throughout Southern California, which included the arrest of doctors and nurses.

First Assistant U.S. Attorney Bill Essayli was joined during a press conference by several law enforcement agencies including the FBI, and Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services.

They said they served a series of search and arrest warrants throughout the region, from Covina to Lakewood in Los Angeles County. Eight people were arrested and more than a dozen are being charged for suspected health fraud.

They also mentioned fraudulent hospice care.

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“These defendants recruited beneficiaries who were not terminally ill, and paid them to pose as patients receiving hospice care. Medicare then paid millions of dollars – hundreds of millions of dollars – on false and fraudulent claims submitted by fraudsters,” said Essayli.

Among those arrested were a Covina couple. Prosecutors said 66-year-old psychologist Gladwin Gill and his wife, Amelou Gill, a registered nurse, operated a fraudulent hospice business out of Glendale.

“This particular hospice submitted more than $5.2 million in fraudulent claims, and Medicare actually paid out more than $4 million,” Essayli said.

Gill’s attorney told our sister station, ABC7 Eyewitness News in Los Angeles, he denies the allegations and looks forward to his day in court.

Oz announced a broader review of hospice providers in the state.

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“We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year,” Oz said.

During the news conference, federal authorities were questioned about a video California Gov. Gavin Newsom said in January his office was reviewing. In that video, Oz, who is Turkish American, was shown standing in front of an Armenian-owned bakery in Van Nuys while alleging widespread fraud in the area.

Essayli confirmed that none of the defendants named Thursday were connected to that video. Oz responded to outcry that his accusations, which the business owner denounced as false, were discriminatory.

“I was stating the facts as they’ve been explained to me, and we have a lot of evidence of where the fraud is, just looking at the numbers,” Oz said.

Oz did not provide any evidence against a specific business in connection to that video. He suggested that half of Los Angeles County hospice care facilities are fraudulent, pointing to survival percentages as evidence.

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“World experts at CMS say if you’ve got 100% or near survival, certainly if you’ve got a survival over 50% for population that’s supposed to have passed in six months, you’ve got a problem,” he said.

Newsom responded to accusations that California had not done enough to address hospice fraud, saying in part, “The Trump Administration – home to the biggest fraudsters on Earth – is trying to blame California for issues with THEIR federal programs.”

His press office said the state has taken action for years, including suspending more than 280 licenses and banning new ones.

Copyright © 2026 KABC Television, LLC. All rights reserved.



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California law allowing people to cook, sell food from homes getting statewide push

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California law allowing people to cook, sell food from homes getting statewide push


A home-based food movement has been heating up in California, with home cooks turning their beloved family recipes into small businesses. 

When most people get laid off, they update their résumés. James Houlahan preheated his oven.

“It’s pretty brutal, and since nobody’s hiring, I just figured I need to make a job for myself,” he said.

So the San Francisco Bay Area resident went back to a family recipe and decided to take a risk, with a whisk. He started making pavlovas, a light, meringue-based Australian dessert, crisp on the outside and soft in the middle.

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“It’s something my mom and I always joked about whenever we’d bring a pav to a party, this thing kills,” Houlahan said. “So we figured, someone’s gotta make a business out of this.”

So he did, out of his own kitchen in Alameda. 

And that’s not a loophole. A 2019 law called MEHKO, or Microenterprise Home Kitchen Operation, allows people to cook and sell food right out of their homes. Since then, more than 1,000 of these home kitchens have opened across California, operating under a growing but still patchwork system.

There are rules: food must be made from scratch and sold the same day. Not every county is on board, but there is now a push to expand it statewide.

Roya Bagheri, the executive director of The Cook Alliance, the nonprofit behind MEHKO, said the law is gaining momentum across the country as other states consider their own versions. 

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“The cost of getting something like a food truck or a brick and mortar restaurant is so high, this creates an access to enter the food industry,” she said.

A study by the group showed more than a third of home kitchen operators have used MEHKO as a stepping stone into something bigger.

But for some, the law is still a little undercooked. Jot Condie, president and CEO of the California Restaurant Association, warned that some counties may not have the resources to take it on.

“If they don’t have the budget, there may not be a rigorous inspection procedure, and that is a huge concern for us,” Condie said.

As for Houlahan, he’s betting on his own kitchen and his mother’s name: Marianne’s Pavlovas. And his customers, like Flora Tso, are already sold.

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“Nowadays it just gives us more choice,” she said.



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