In one paragraph
Maryland's HB 1399 (2026, first reader text) would have added Commercial Law section 14-1228 requiring consumer reporting agencies that use algorithmic systems to assemble or evaluate consumer information to explain evaluations in plain language, keep a public registry of algorithms, meet error-rate targets, get quarterly independent bias audits, have humans review automated evaluations within 24 hours, and notify consumers when AI is used. It had a House Economic Matters hearing set for March 10, 2026 and died when the 2026 session ended.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died and did not become law. It would have set audit, accuracy, human-review and disclosure duties for consumer reporting agencies using algorithms.
Key provisions
- Would have added Commercial Law section 14-1228, applying to consumer reporting agencies that use algorithmic systems; effective October 1, 2026
- Plain-language explanation of each algorithmic evaluation and a public registry of algorithms (purpose, data sources, general methodology)
- Overall algorithmic error rate below 0.5% compared with human review, discriminatory data rates below 0.1% for protected characteristics, and data input accuracy of at least 99.9%
- Quarterly harmful-bias audits by an independent third party, submitted to the Commissioner within 30 days of completion, plus annual summary reports
- Human review of automated evaluations within 24 hours (expedited review within 48 hours on request) before a decision is final, and random human review of at least 10% of algorithmic evaluations
- Consumers who opt out of automated decision-making to be offered nonalgorithmic assessment; notice that AI is used, and AI outputs including synthetic audio, image, video or text to be detectable as artificially generated
- Commissioner of Financial Regulation to set annual assessment thresholds, mandate reviewer training and implement a whistleblower protection program, and may adopt regulations
- The new section adds no penalty or enforcement provision of its own
Latest legislative action
Feb 17, 2026. Hearing 3/10 at 1:00 p.m.; died when the Maryland General Assembly's 2026 session ended April 13, 2026
Sponsors (showing 5 of 50)
| Name | Role |
|---|---|
| Adams | Primary |
| Arikan | Primary |
| Bartlett | Primary |
| Chisholm | Primary |
| Fisher | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error