The Senate Institutions Committee has unanimously (5-0-0) advanced a data privacy bill that reflects the needs and concerns of Vermonters, including the Vermont business community. The original proposal in S.71, heavily influenced by out-of-state special interests, contained extreme provisions which would have placed costly and unworkable burdens on local businesses. A similar version of the bill was passed last year but was ultimately vetoed by Governor Phil Scott due to concerns about its lack of regional compatibility and the inclusion of a private right of action. With testimony and advocacy from Vermont stakeholders, including the Vermont Chamber of Commerce, lawmakers have instead advanced a more balanced approach that aligns with the New England model of data privacy protections.

The revised bill strengthens consumer data protections while ensuring that compliance remains practical for businesses of all sizes. Importantly, the legislation does not include a private right of action, a provision which could result in an influx of lawsuits or threats of lawsuits against Vermont businesses, creating uncertainty and increased legal costs. Following the New England model, the committee supported a framework that promotes responsible data practices without stifling economic growth or innovation. The new version of the bill also addresses requests outlined in Governor Scott’s veto letter, ensuring that Vermont’s approach to data privacy aligns with regional standards and avoids placing undue burdens on local businesses and nonprofits.

The bill will now go before the full Senate for further debate and a vote before moving to the House for additional consideration. The Vermont Chamber will continue engaging with lawmakers to ensure that the final legislation maintains a strong balance between consumer privacy and business viability, while also meeting the standards set forth by Governor Scott. As the House begins its review, the Chamber encourages Vermont businesses to stay informed and involved in the process to ensure their voices are heard.