Senate Bill 1220 (Limón -D) would prevent certain state call centers from using AI or automated decision systems (ADS) that threaten to eliminate or automate core job functions of state employees.  The bill is awaiting action by Governor Gavin Newsom after passing through both legislative chambers this summer.  The governor has until September 30th to act on the measure. 

In a year with more than 40 measures attempting to regulate artificial intelligence in California, the central tenet of SB 1220 is to protect human jobs in public benefit call centers, where AI and ADS are being introduced to streamline processes. Public benefits covered by this bill include Medi-Cal, CalWORKS, CalFresh, and other essential services designed for California’s most vulnerable populations.  The bill has been opposed by various 211 providers and trade associations for health plans and insurers, according to the most recent Floor Analysis.  

The bill was co-sponsored by the California Labor Federation and the Service Employees International Union (SEIU), organizations concerned about AI displacing workers and degrading the quality of public services. In a statement, the California Labor Federation emphasized the bill’s importance, noting that AI, when improperly implemented, has “eroded good jobs” and could diminish the quality of service that Californians rely on during critical times, such as natural disasters or health crises.

Though the bill restricts AI’s role in eliminating human jobs, it does not completely shut the door on AI in public service. It allows the use of AI tools that assist workers, such as systems that offer suggestions or aid workers in handling tasks more efficiently. However, it explicitly defines “core job functions” as tasks requiring judgment and discretion, ensuring that jobs demanding human empathy and decision-making remain within human hands.

A November 2023 report from the Government Operations Agency highlighted the potential of generative AI (GenAI) to improve service delivery and expand access to government programs in California. The report identified various uses, such as improving language accessibility, enhancing call center efficiency, and helping constituents navigate services and eligibility. However, it also warned of risks like inaccurate results, automation bias, and the possibility of over-reliance on AI-driven decision-making.

In January, the California Department of Tax and Fee Administration (CDFTA) issued a request for innovative ideas (RFI2), seeking a solution that utilizes generative AI (GenAI) to quickly search extensive reference materials and provide responses to taxpayers contacting the agency via phone or live chat.

SB 122o mandates that public agencies must notify workers, their collective bargaining representatives, and the public at least 60 days before deploying any AI or ADS that would affect workers’ core functions. This provision ensures transparency and provides time for review and response by workers and their unions.

The bill includes several exemptions. For example, automated systems like phone trees and AI systems used to assist, rather than replace, workers are exempt from the restrictions. Additionally, call centers responding to emergencies, such as 911 or the 988 Suicide Prevention & Mental Health Crisis Lifeline, are not subject to these regulations, ensuring that emergency services can continue without interruption.

Moreover, the bill has a sunset clause, with the current provisions set to expire on July 1, 2030, allowing lawmakers to revisit the issue as technology and employment landscapes evolve.

According to the Assembly Appropriations Committee, the implementation of SB 1220 could cost the state tens of millions of dollars annually, primarily to ensure compliance with its stipulations and to maintain California-based call center workers. However, proponents argue that these costs are outweighed by the benefit of preserving jobs and the quality of services.

The bill received support in the Senate, passing with a 32-7 vote in May 2024, and later with a 61-8 vote in the Assembly in August.

As the bill awaits Governor Newsom’s action, many are watching closely to see how California, a global hub for technological advancement, will navigate the intersection of AI and employment. If signed into law, SB 1220 will set a precedent for how governments can regulate AI’s role in public services while protecting human workers from being displaced by automation.