In one paragraph
Vermont's H.340 (2025-2026 biennium) would have regulated developers and deployers of automated decision systems used for consequential decisions in areas such as education, employment, housing, health care, financial services and government services. It would have made algorithmic discrimination unlawful, required independent audits and reports to the Attorney General, notices, explanations and human-review appeals for consumers, and a risk management program. It was referred to House Commerce on February 25, 2025 and died when the biennium ended.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill did not pass. It would have required developers and deployers of automated decision systems to audit them, report to the Attorney General and give consumers notices and appeals.
Key provisions
- Using, selling or sharing a system that produces algorithmic discrimination is unlawful (9 V.S.A. sec. 4193b)
- Deployers must give consumers advance notice, a post-decision explanation of principal reasons, and an appeal with meaningful human review, answered within 45 days with one extension of up to 45 days (Sec. 4193c)
- Independent audits before deployment, six months later and at least every 18 months; systems that have not passed an audit may not be used, sold or shared (Secs. 4193c(f), 4193e)
- Developers and deployers report to the Attorney General before deployment and annually; the Attorney General keeps a public database of redacted reports (Sec. 4193f)
- Risk management policy and program reasonable in light of the NIST AI Risk Management Framework (Sec. 4193g)
- Violations are unfair and deceptive acts under 9 V.S.A. sec. 2453; the Attorney General may investigate and sue (Sec. 4193h)
- Would have taken effect July 1, 2025; systems already deployed then had 18 months to report and audit (Sec. 2; Sec. 4193e(f)). Died in House Commerce and Economic Development
Latest legislative action
Feb 25, 2025. Read first time and referred to the Committee on Commerce and Economic Development
Sponsors (showing 5 of 53)
| Name | Role |
|---|---|
| Ann Pugh | Primary |
| Brian Savage | Primary |
| Casey Toof R | Primary |
| Lisa Hango R | Primary |
| Monique Priestley D | 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