The bill H.720 aims to regulate cloud computing services in Vermont by designating them as a utility under the oversight of the Public Utility Commission and the Department of Public Service. Recognizing the growing importance of cloud computing for both private and public sectors, the bill seeks to promote competition and protect consumers from unfair practices, such as excessive fees and inadequate data privacy. To facilitate this, it introduces the Cloud Computing Public Utility Act, which establishes definitions, jurisdiction, service quality standards, and consumer protections. Key provisions require cloud service providers to maintain reasonable service quality, file rate schedules, ensure pricing transparency, allow data portability, and prohibit excessive termination fees.

Furthermore, the bill mandates a comprehensive needs assessment to evaluate the demand for cloud services, existing data center capacities, infrastructure gaps, and environmental impacts. It also outlines the regulatory powers of the Department of Public Service, including the imposition of penalties for non-compliance. The regulations will apply to all cloud service providers operating in Vermont starting July 1, 2027, with the act taking effect on July 1, 2026. Overall, the bill emphasizes consumer protection and public safety in the deployment of cloud services, ensuring that residents have reliable access to these essential resources.

Statutes affected:
As Introduced: 30-30(a)(2), 30-30, 30-30(a)