VT H0720

Cloud computing services would be classified as a public utility in Vermont, subject to regulation by the Public Utility Commission and Department of Public Service, with providers required to obtain a certificate of public good to operate in the state.

Providers must file rate schedules and terms of service with regulators, maintain service quality standards, and are prohibited from unjust discrimination, excessive data egress fees, and service termination fees.

Consumers gain data portability rights, requiring providers to supply configuration data, metadata, and workload artifacts in portable formats upon request, and providers must give 60 days notice before increasing fees.

The Commission must submit a needs assessment every three years starting January 15, 2028, evaluating cloud service demand, infrastructure gaps, and environmental impacts including data center energy and water consumption.

Providers must pay annual regulatory fees on Vermont gross operating revenue starting April 15, 2028, and violations can result in civil penalties up to $42,500 for non-harmful violations, with the act taking effect July 1, 2026 and applying to providers doing business in Vermont on or after July 1, 2027.