California

Proposed California Regulations for Automated Decision-Making

Published

2 years ago

January 22, 2024

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.

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.}

^{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

California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’

Published

9 hours ago

July 3, 2026

Press Room

California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’

California is returning a stretch of rugged Mendocino County coast to the Indigenous nations whose ancestors once stewarded its shores.

State transportation officials recently approved the transfer of Blues Beach and the surrounding bluffs to Kai Poma, a nonprofit founded by representatives of the Sherwood Valley Band of Pomo Indians, Round Valley Indian Tribes and Coyote Valley Band of Pomo Indians.

The transfer of 136 acres just south of the community of Westport will mark the first time land managed by the California Department of Transportation has been returned to Indigenous tribes.

“This is beyond huge,” said J. Carlos Rivera, tribal chairman of the Sherwood Valley Band of Pomo Indians. “It’s enormous from our tribal perspective that we are basically obtaining the land that our people once lived on before colonization.”

California purchased the swath of rocky cliffs and windswept shoreline in the 1960s to expand the construction of Highway 1 and create a scenic viewpoint for highway travelers, according to a California Coastal Commission report.

More recently, public access has been largely unregulated, and summer weekends and holidays have drawn large groups who camp and party on the beach, at times driving through sensitive areas, damaging cultural sites and leaving behind trash, the report states.

Kai Poma plans to conduct cultural and archaeological resource studies and environmental surveys and then prepare a resource management plan for the property, according to planning documents. The nonprofit and the Coastal Commission have drafted a public access management plan that states the land will be open from sunrise to sunset.

Rivera described the entire property as a sacred site. The coastal waters are used by tribal people for seaweed and abalone gathering, and the shores host youth cultural camps, he said. “Protecting the land, it has a deeper meaning for us because we’re connected to the land,” he said.

The effort to acquire the land took years — and required a change in state law. Caltrans lacked the ability to transfer land to tribal governments until 2021, when Gov. Gavin Newsom signed a bill sponsored by state Sen. Mike McGuire (D-Healdsburg) that enabled the transfer, according to a news release issued at the time. The law also bars commercial activity on the property and requires public access be maintained.

“With 136 acres now officially transferred into tribal stewardship, one of the most spectacular stretches of the Mendocino Coast will be forever protected,” McGuire said in a statement.

“This agreement, the first of its kind in California, gives these three dynamic Native American tribes the rightful opportunity to reclaim sacred lands and cultural traditions on this special piece of earth. And it’s about damn time.”

The land transfer cleared its last regulatory hurdle June 26 with the approval by the California Transportation Commission, said Neil Thapar, an attorney who works as an advisor and legal consultant to Kai Poma. Caltrans staff will next record the deed transferring the title from the state of California to Kai Poma, which is expected to happen any day, he said.

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California

What’s open, closed for Independence Day weekend in California?

Published

20 hours ago

July 2, 2026

Press Room

What’s open, closed for Independence Day weekend in California?

With July 4 falling on a Saturday this year, many businesses and organizations are taking the day off Friday, July 3, to mark America’s 250th birthday. From banking to mail service, here’s what’s open and closed for the holiday weekend.

Most federal offices closed, mail service to continue

Non-essential federal offices will be closed on July 3. However, mail service will continue as normal, and post offices are scheduled to remain open.

Most California government offices to remain open

Most California government offices will be open on July 3, with some exceptions.

DMV offices throughout the state will be open. However, the Employment Development Department will be closed.

DMV offices that offer Saturday hours will be closed on July 4.

Private parcel services to remain open

UPS and FedEx are both scheduled to operate normally on July 3, but will suspend service on July 4.

Stock markets closed

Both the New York Stock Exchange and Nasdaq will be closed on July 3.

Most banks to stay open

While most banks were expected to operate normally on July 3, some may operate under modified holiday hours. All banks will be closed on July 4.

Online banking services should remain operational.

Grocery stores

Most major grocery chains will be open on both July 3 and July 4. Trader Joe’s locations will be open for regular business on July 3 but will close early at 5 p.m. on the Fourth of July.

Retailers

Many major retail stores, such as Walmart and Target, plan to operate under normal business hours on both July 3 and 4. All Costco warehouse stores operate under normal business hours on July 3, but will close on July 4.