In one paragraph
Maryland's HB 1477 (2025) would have added Commercial Law section 14-1228 for consumer reporting agencies that use algorithmic systems to assemble or evaluate consumer information. They would have had to give plain-language explanations, keep a public registry of algorithms, meet error-rate and accuracy thresholds, get quarterly third-party bias audits, and have all automated evaluations reviewed by a human within 24 hours. It was introduced February 7, 2025, its March 4 hearing was canceled, and it died when the session ended.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died when the 2025 session ended. It would have required consumer reporting agencies using algorithms to add human review, audits and error-rate limits.
Key provisions
- Would have applied only to a consumer reporting agency that uses algorithmic systems; each automated evaluation would need a plain-language explanation and human review within 24 hours (expedited review within 48 hours of a request), plus random human review of at least 10% of evaluations
- Public registry of all algorithms used (purpose, data sources, general methodology); alternative non-algorithmic assessment for consumers who opt out
- Thresholds: overall error rate below 0.5% compared to human review, discriminatory data rates below 0.1%, data input accuracy at least 99.9%
- Quarterly harmful bias audits by an independent third party, submitted to the Commissioner of Financial Regulation within 30 days of completion, with annual summaries
- Data governance framework with data sources certified at least monthly and minimum data set sizes of 1,000, 5,000 or 10,000 data points depending on algorithm complexity
- The Commissioner would set annual assessment thresholds, mandate reviewer training and run a whistleblower program, and could adopt regulations; the bill states no penalties and does not define "algorithmic system"
- Would have taken effect October 1, 2025
Latest legislative action
Mar 3, 2025. Hearing canceled
Sponsors
| Name | Role | District |
|---|---|---|
| Terri Hill D | Sponsor | HD-012 |
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