VT H0340

Prohibits algorithmic discrimination by developers and deployers of automated decision systems used in "consequential decisions" affecting education, employment, housing, utilities, health care, financial services, law enforcement, and government benefits

Requires deployers to notify consumers before using automated systems for consequential decisions, provide plain-language explanations of decisions made, and offer an appeal process with meaningful human review within 45 days

Mandates independent audits prior to deployment, six months after deployment, and every 18 months thereafter to assess algorithmic discrimination, with systems that fail audits prohibited from use until discrimination is rectified

Requires developers and deployers to file detailed reports with the Attorney General including system descriptions, training data information, intended uses, risk assessments, and legal attestations of compliance

Violations constitute unfair and deceptive acts under the Vermont Consumer Protection Act, with enforcement authority granted to the Attorney General; whistleblower protections established for employees reporting violations; effective date July 1, 2025