(b) Inventory. The Agency of Digital Services shall conduct a review and make an inventory of all automated decision systems that are being developed, employed, or procured by State government. The inventory shall include the following for each automated decision system: (1) the automated decision system's name and vendor; (2) a description of the automated decision system's general capabilities, including: (A) reasonably foreseeable capabilities outside the scope of the agency's proposed use; and (B) whether the automated decision system is used or may be used for independent decision-making powers and the impact of those decisions on Vermont residents; (3) the type or types of data inputs that the technology uses; how that data is generated, collected, and processed; and the type or types of data the automated decision system is reasonably likely to generate; (4) whether the automated decision system has been tested by an independent third party, has a known bias, or is untested for bias; (5) a description of the purpose and proposed use of the automated decision system, including: (A) what decision or decisions it will be used to make or support; (B) whether it is an automated final decision system or automated support decision system; and (C) its intended benefits, including any data or research relevant to the outcome of those results; (6) how automated decision system data is securely stored and processed and whether an agency intends to share access to the automated decision system or the data from that automated decision system with any other entity, and why; and (7) a description of the IT fiscal impacts of the automated decision system, including: (A) initial acquisition costs and ongoing operating costs, such as maintenance, licensing, personnel, legal compliance, use auditing, data retention, and security costs; (B) any cost savings that would be achieved through the use of the technology; and (C) any current or potential sources of funding, including any subsidies or free products being offered by vendors or governmental entities.

(8) an annual update to the inventory required by section 3305 of this title.

(b) Creation. There is established the Artificial Intelligence Commission within the Agency of Digital Services to study and monitor all aspects of artificial intelligence systems developed, employed, or procured in State government. (d) Powers and duties. The Commission shall study and monitor artificial intelligence systems developed, employed, or procured in State government, including the following: (1) propose for adoption by the Agency of Digital Services a State code of ethics for artificial intelligence in State government, which shall be updated annually; (2) make recommendations to the General Assembly on policies, laws, and regulations for artificial intelligence systems in State government; (3) review the automated decision systems inventory created by the Agency of Digital Services, including: (A) whether any systems affect the constitutional or legal rights, duties, or privileges of any Vermont resident; and (B) whether there are any potential liabilities or risks that the State of Vermont could incur from its implementation; and (4) annually, on or before January 15 each year, report to the House Committee on Energy and Technology and the Senate Committees on Finance and on Government Operations on the following: (A) the extent of the use of artificial intelligence systems by State government and any short- or long-term actions needed to optimize that usage or mitigate their risks; (B) the impact of using artificial intelligence systems in State government on the liberty, finances, livelihood, and privacy interests of Vermont residents; (C) any necessary policies to: (i) protect the privacy and interests of Vermonters from any diminution caused by employment of artificial intelligence systems by State government; and (ii) ensure that Vermonters are free from unfair discrimination caused or compounded by the employment of artificial intelligence in State government; (D) a summary of the recommendations of any relevant national bodies on artificial intelligence, including the National Artificial Intelligence Advisory Committee established by the Department of Commerce, and its applicability to Vermont; and (E) any other information the Commission deems appropriate based on its work.

(b) On or before January 15, 2024, the Commission shall develop recommendations for a clear use and data management policy for State government in its report required under 3 V.S.A. § 5011(d)(4), including protocols for the following: (1) how and when an automated decision system will be deployed or used and by whom, including: (A) the factors that will be used to determine where, when, and how the technology is deployed; (B) whether the technology will be operated continuously or used only under specific circumstances; and (C) when the automated decision system may be accessed, operated, or used by another entity on the agency's behalf and any applicable protocols; (2) whether the automated decision system gives notice to an individual impacted by the automated decision system of the fact that the automated decision system is in use and what information should be provided with consideration to the following: (A) the automated decision system's name and vendor; (B) what decision or decisions it will be used to make or support; (C) whether it is an automated final decision system or automated support decision system; (D) what policies and guidelines apply to its deployment; (E) whether a human verifies or confirms decisions made by the automated decision system; and (F) how an individual can contest any decision made involving the automated decision system; (3) whether the automated decision system ensures that the agency can explain the basis for its decision to any impacted individual in terms understandable to a layperson, including: (A) by requiring the vendor to create such an explanation; (B) whether the automated decision system is subject to appeal or immediate suspension if a legal right, duty, or privilege is impacted by the decision; and (C) potential reversal by a human decision maker through a timely process clearly described and accessible to an individual impacted by the decision; and (4) what policies the State should have for a third-party entity to disclose potential conflicts of interest prior to purchasing or using their technology and how the State should evaluate those conflicts with respect to how the State intends to implement the technology.