H 714

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1H.714
2 Introduced by Representatives Casey of Montpelier and Priestley of Bradford
3 Referred to Committee on
4 Date:
5 Subject: Executive; State employees; automated employment decision making
6 Statement of purpose of bill as introduced: This bill proposes to require the
7 State to disclose the use of automated employment decision-making tools to its
8 employees and to provide that the use of automated employment decision
9 making shall not affect the rights of State employees covered by existing
10 collective bargaining agreements. This bill also proposes to create a study
11 committee on the impact of the disclosure of automated employment decision-
12 making tools on State employees and the feasibility of extending the disclosure
13 requirement and protections for unionized employees to municipal employees,
14 teachers and employees of public schools, and employees of public institutions
15 of higher education.
16    An act relating to automated employment decision making and State
17    employees
18 It is hereby enacted by the General Assembly of the State of Vermont:
19 Sec. 1. 3 V.S.A. § 269 is added to read:
20 § 269. AUTOMATED EMPLOYMENT DECISION-MAKING TOOL
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1    (a) Definitions. As used in this section:
2(1) “Automated employment decision-making tool” means any software
3 that uses algorithms, computational models, or artificial intelligence
4 techniques, or a combination thereof, to materially automate or replace human
5 decision making regarding employment, including wages and other
6 compensation, hiring, recruitment, discipline, and promotion. “Automated
7 employment decision-making tool” does not include any software used
8 primarily for basic computerized processes, such as calculators, spell-check
9 tools, autocorrect functions, spreadsheets, electronic communications, or any
10 tool that relates only to internal office management, such as ordering office
11 supplies or processing payments, and that does not materially affect the rights,
12 liberties, benefits, safety, or welfare of any individual State employee.
13(2) “State agency” means any agency, department, or division of the
14 State.
15    (b) Disclosure of automated employment decision-making tools. Any State
16 agency that utilizes automated employment decision-making tools shall
17 publish and maintain a list of the tools on the State agency’s website. The
18 disclosure shall include:
19(1) a description of each automated employment decision-making tool
20 utilized by the State agency;
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1(2) the date the State agency began using each automated employment
2 decision-making tool;
3(3) a summary of the purpose and use of each automated employment
4 decision-making tool; and
5(4) any other information about the tools deemed relevant by the State
6 agency.
7    (c) Bargaining rights.
8(1) The use of an automated employment decision-making tool by a
9 State agency shall not affect the rights of State employees pursuant to an
10 existing collective bargaining agreement or affect the existing bargaining
11 relationship between the State and employees covered by a collective
12 bargaining agreement.
13(2) The use of an automated employment decision-making tool shall not
14 result in:
15(A) the discharge, displacement, or loss of position, including partial
16 displacement such as a reduction in the hours of nonovertime work, wages, or
17 employment benefits, of State employees;
18(B) the impairment of existing collective bargaining agreements; or
19(C) the transfer of existing duties and functions currently performed
20 by employees of a State agency to an automated employment decision-making
21 tool.
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1(3) The use of an automated employment decision-making tool shall not
2 alter the rights, benefits, or privileges, including terms and conditions of
3 employment, classified service status, and collective bargaining unit
4 membership status, of all existing employees of a State agency, and the
5 collective bargaining unit membership status of all existing employees of a
6 State agency shall be preserved and protected.
7 Sec. 2. STUDY COMMITTEE ON AUTOMATED EMPLOYMENT
8DECISION-MAKING TOOLS AND PUBLIC EMPLOYEES;
9REPORT
10    (a) Creation. There is created the Study Committee on Automated
11 Employment Decision-Making Tools and Public Employees to examine the
12 impact of the disclosure of automated employment decision-making tools on
13 State employees and the feasibility of extending the disclosure requirement and
14 protections for unionized employees to municipal employees, teachers and
15 other public school employees, and employees of public institutions of higher
16 education.
17    (b) Membership. The Study Committee shall be composed of nine
18 members as follows:
19(1) one current member of the House of Representatives, appointed by
20 the Speaker of the House;
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1      (2) one current member of the Senate, appointed by the Committee on
2 Committees;
3      (3) one representative of the Department of Human Resources,
4 appointed by the Commissioner of Human Resources;
5      (4) one representative of the Agency of Administration, appointed by
6 the Secretary of Administration;
7      (5) one member who is a bargaining representative on behalf of State
8 employees, appointed by the Vermont State Employees’ Association;
9      (6) one representative of a statewide teachers’ union, appointed by the
10 Vermont-National Education Association;
11      (7) one representative of municipal employees, appointed by the
12 Vermont League of Cities and Towns;
13      (8) one representative of a public institution of higher education,
14 appointed jointly by the President of the University of Vermont and the
15 Chancellor of the Vermont State Colleges; and
16      (9) one public member with expertise in labor law or automated or
17 algorithmic decision making, appointed by the Governor.
18   (c) Powers and duties. The Study Committee shall examine and make
19 findings and recommendations regarding the following:
20      (1) the effectiveness of the disclosure requirements for automated
21 employment decision-making tools pursuant to 3 V.S.A. § 269;
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1(2) the extent to which existing statutory and collectively bargained
2 employee protections adequately protect unionized State employees from
3 adverse employment actions resulting from the use of automated employment
4 decision-making tools;
5(3) the interaction between automated employment decision-making
6 tools and the dispute resolution mechanisms in collective bargaining
7 agreements covering State employees;
8(4) the feasibility, benefits, risks, and potential unintended consequences
9 of extending the disclosure and labor protection requirements of 3 V.S.A.
10 § 269 to:
11(A) municipal employees;
12(B) teachers and other public school employees; and
13(C) employees of public institutions of higher education;
14(5) the administrative, fiscal, and operational impacts of extending
15 coverage under 3 V.S.A. §269 to additional categories of public employees;
16 and
17(6) whether statutory amendments, phased implementation, or
18 differentiated approaches are advisable for different categories of public
19 employees.
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1    (d) Assistance. The Study Committee shall have the administrative,
2 technical, and legal assistance of the Department of Human Resources. The
3 Joint Fiscal Office shall provide fiscal analysis upon request.
4    (e) Report. On or before December 15, 2028, the Study Committee shall
5 submit a written report to the House Committees on Commerce and Economic
6 Development and on Government Operations and Military Affairs and the
7 Senate Committees on Government Operations and on Education with its
8 findings and any recommendations for legislative action.
9    (f) Meetings.
10(1) The committee member representing the Department of Human
11 Resources shall call the first meeting of the Study Committee to occur on or
12 before September 1, 2027.
13(2) The members of the Study Committee shall select a chair from
14 among its legislative members at the first meeting.
15(3) A majority of the membership shall constitute a quorum.
16(4) The Study Committee shall cease to exist upon submission of its
17 report or on January 15, 2029, whichever occurs first.
18    (g) Compensation and reimbursement.
19(1) For attendance at meetings during adjournment of the General
20 Assembly, a legislative member of the Study Committee shall be entitled to per
21 diem compensation and reimbursement of expenses pursuant to 2 V.S.A. § 23
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1 for not more than six meetings. These payments shall be made from monies
2 appropriated to the General Assembly.
3      (2) Except for those members otherwise regularly employed by the
4 State, other members of the Study Committee shall be entitled to per diem
5 compensation and reimbursement of expenses as permitted under 32 V.S.A.
6 § 1010 for not more than six meetings. These payments shall be made from
7 monies appropriated to the Department of Human Resources.
8 Sec. 3. EFFECTIVE DATE
9   This act shall take effect on July 1, 2026.
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