ASSEMBLY SCIENCE, INNOVATION AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4888

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 23, 2025

      The Assembly Science, Innovation and Technology Committee reports favorably and with committee amendments Assembly Bill No. 4888.

      As amended and reported, this bill establishes the Artificial Intelligence (AI) and Labor Market Study Commission (commission).  The commission will leverage its expertise in technology along with gathering additional input from independent or sponsored studies in order to assess the impact of AI on the labor market, develop strategies to address job displacement, and identify methods to expand AI-related workforce opportunities.

      The commission will consist of 11 members and be comprised of four ex officio members and seven public members, who are appointed by the Commissioner of Labor and Workforce Development (commissioner).  Of the public members, not more than four may be of the same political party.  At least one member will be a representative of a technology trade group and at least four members will be individuals with expertise in AI technology.  The remaining members will have expertise in technology, business administration, economics, employment training, or labor.

      Under the bill, the commission will: (1) engage with technology experts and sponsor studies as necessary to understand the potential impacts of AI on the New Jersey workforce; (2) identify high-risk jobs, including those most likely to result in displacement due to AI in the six to 18 months after the bill’s effective date; (3) develop programs to assist displaced workers with enhanced training opportunities; (4) coordinate activities between the Department of Education and the Department of Labor and Workforce Development to implement the tactical and strategic actions recommended by the commission; and (5) provide at least two periodic reports per calendar year to the Governor and the Legislature, which reports will include recommend actions to address job displacement and job development.

      Finally, the bill establishes the Job Transition Fund to support displaced workers and enable transitions to new AI-driven roles through education, training, State job training funds, and job placement services.  The fund will be used for strategic and tactical initiatives identified by the commission’s research activities, and will be administered by the commissioner.  The initial funding source for this fund will be sourced from the Workforce Development Partnership Fund.

COMMITTEE AMENDMENTS:

      The committee amendments:

      (1)  update the definitions of “AI,” “commission,” and “Job Transition Fund”;

      (2)  clarify that seven members of the commission who are private citizens appointed by the commissioner are to hold office for a term of three years or until a successor is appointed and qualified;

      (3)  require at least one of the members of the commission who is a private citizen is to be a representative of a technology trade group;

      (4)  clarify that the chairperson of the commission is to be a private citizen;

      (5)  clarify that initial funding from the Workforce Development Partnership Fund will be sourced to direct a portion of the Job Transition Fund to training services;

      (6)  correct a citation;

      (7)  correct references to the commission; and

      (8)  make technical corrections.