AI Frontier Institute

An act relating to regulating developers and deployers of certain automated decision systems

View primary source →

Vermont H.340 has not been enacted. It was introduced in 2025 and referred to the House Committee on Commerce and Economic Development. If enacted, it would add 9 V.S.A. chapter 118 to regulate developers and deployers of automated decision systems used in "consequential decisions". These are decisions with a material, legal, or similarly significant effect on education, employment, housing, essential utilities, family planning, health care, financial services, law enforcement, government services, or civil-rights accommodations (§ 4193a). Main provisions: (1) § 4193b makes it unlawful discrimination to use, sell, or share a system that produces algorithmic discrimination. (2) § 4193c requires deployers to give consumers advance notice, a plain-language explanation of each decision, and an appeal with meaningful human review. A response is due within 45 days, extendable once by 45 more. It makes developers and deployers legally responsible for decision quality and accuracy. It bars developers from using, selling, or sharing a system that has not passed an independent audit. (3) § 4193d protects employees who disclose violations to the Attorney General and requires an anonymous internal reporting process for developer-employers. (4) § 4193e requires independent audits before deployment, six months after, and at least every 18 months thereafter. It sets auditor independence rules and requires audits to be delivered to the Attorney General. (5) § 4193f requires reports and legal attestations filed with the Attorney General before deployment and then annually or after a substantial change. It requires a public online database of redacted reports and audits. Systems already deployed on or before July 1, 2025 get 18 months to comply. (6) § 4193g requires a risk management policy and program reasonable in light of the NIST AI Risk Management Framework. (7) § 4193h treats violations as unfair and deceptive acts under the Vermont Consumer Protection Act, with Attorney General enforcement and rulemaking. Sec. 2 sets an effective date of July 1, 2025.

← Back to the tracker