Bill > H0340

This bill proposes comprehensive regulations for developers and deployers of automated decision systems (ADS) used in consequential decisions to prevent algorithmic discrimination. The legislation defines key terms like "algorithmic discrimination" as differential treatment that disfavors individuals based on protected characteristics such as race, age, disability, and gender identity. "Consequential decisions" are broadly defined to include areas like employment, education, housing, healthcare, financial services, and government benefits. The bill mandates that developers and deployers of ADS must conduct independent audits, provide clear consumer notifications about how automated systems are used, and establish appeal processes that include meaningful human review. Developers and deployers are legally responsible for the accuracy and fairness of their systems, and must proactively identify and mitigate potential discriminatory outcomes. The bill requires detailed reporting to the Attorney General about the systems' design, training data, potential risks, and intended uses. Importantly, the legislation includes whistleblower protections for employees who report potential violations and establishes that violations can be prosecuted under consumer protection laws. The bill is set to take effect on July 1, 2025, giving businesses time to prepare for compliance with these new regulations aimed at preventing algorithmic bias.

Business and Industry

https://legislature.vermont.gov/bill/status/2026/H.340