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Read. Follow. Verify.Vermont bill classifies cloud computing as public utility and regulates providers
Last action · January 20, 2026: Read first time and referred to the Committee on Energy and Digital InfrastructureSponsors: Monique Priestley and 1 other
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What This Bill Would Do
This bill establishes cloud computing services as public utilities subject to state regulation, requiring providers to obtain certificates of public good, file rate schedules, and maintain standards starting July 1, 2027.
Vermont residents and businesses using cloud infrastructure will gain state-enforced protections against service termination fees, , and unfair pricing starting July 1, 2027.
- The Vermont General Assembly is the state's bicameral legislature responsible for enacting state laws and establishing regulatory frameworks. context
- The Public Utility Commission regulates public service companies in Vermont, such as electric, gas, telecommunication, and water utilities, ensuring safe and reliable service at just rates. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Cloud service providers
Cloud service providers must obtain certificates of public good, file rate schedules, comply with open access and data portability rules, and pay regulatory taxes.
Consumers
Consumers receive protections against termination fees, requirements for data portability, advance notice of fee increases, and potential rate caps on baseline services.
Public Utility Commission
The Commission gains jurisdiction and regulatory authority to oversee cloud service providers, adopt implementing rules, establish thresholds, and assess penalties.
Key Facts
- The bill establishes cloud computing service as a type of utility service in Vermont subject to the Public Utility Commission and Department of Public Service.
- Cloud service providers must petition the Public Utility Commission for a certificate of public good before operating in the state.
- Providers are prohibited from charging or collecting service termination fees from consumers.
- Cloud service providers must provide consumer data, metadata, and workload artifacts in a portable and readily usable format upon request.
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- The Public Utility Commission may establish baseline cloud computing service offerings and cap maximum rates for specified customer classes, subject to hardship exemptions for small providers.
- Cloud service providers must give at least 60 days' notice before increasing an existing fee or adding a new fee after establishing service with a consumer.
- Beginning on or before April 15, 2028, cloud service providers must pay taxes into the State Treasury on gross operating revenue from regulated cloud services.
- Violations of the chapter are subject to civil penalties, including a fine of up to $42,500.00 if the violation did not cause substantial harm.
- The provisions of the act enacting chapter 15 apply to all cloud service providers doing business in Vermont on or after July 1, 2027.
- The act takes effect on July 1, 2026.
Frequently Asked Questions
What is considered a cloud service provider under this bill?
Can cloud service providers charge fees when a customer cancels service?
When do these new regulations take effect for cloud providers?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Jan 20, 2026HouseIntroducedRead first time and referred to the Committee on Energy and Digital Infrastructure
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Extension of Utility Regulation to Cloud Computing
The bill represents a novel policy shift by extending traditional public utility commission oversight, typically reserved for electricity, water, and telecom, to modern cloud computing services.
Connected Entities
Sources
legislature.vermont.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy75Intensity of disagreement among stakeholders
- Entertainment15Compellingness for a non-policy-wonk reader
- Buzz70Current news / social attention level
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