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Bill

H 121

An act relating to affordable broadband service

2025-2026 Regular Session Introduced by Chris Morrow

ISPs in Vermont must offer affordable broadband to eligible low-income customers (25 Mbps for $15 or 200 Mbps for $20, with ongoing rules and reporting).

Read first time and referred to the Committee on Energy and Digital Infrastructure
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WeVote Research Nonpartisan
Bill Summary · H 121

Overview

H.121 (2025-2026) from Vermont seeks to ensure affordable broadband by requiring internet service providers (ISPs) operating in Vermont to offer and provide affordable broadband service to eligible low-income consumers. The bill sets specific price and speed thresholds, processes for eligibility and admin rules, reporting requirements, and enforcement mechanisms.

Main purpose and intent

  • Establish a statewide obligation for ISPs to offer affordable broadband options to low-income Vermonters.
  • Create a framework for pricing, speed benchmarks, eligibility, compliance reporting, and periodic review to align with evolving national benchmarks and consumer needs.
  • Protect consumers from unfair or deceptive practices related to affordable broadband offerings and promote public awareness of these options.

Key provisions and changes

  • AFFORDABLE BROADBAND SERVICE (new 9 V.S.A. § 2466d)
    • Effective date: On or before October 1, 2025, ISPs must offer affordable broadband service to eligible low-income consumers.
    • Definitions:
    • Affordable broadband service:
      • Option A: ≥25 Mbps download speed at ≤$15 per month (including taxes/fees such as equipment rental and usage charges).
      • Option B: ≥200 Mbps download speed at ≤$20 per month (same inclusions for taxes/fees).
    • Broadband service: Mass-market retail service by wire or radio in Vermont that can transmit/receive data to/from most endpoints; excludes dial-up.
    • Internet service provider (ISP): Businesses offering broadband service in Vermont.
    • Low-income consumer: Household qualifying for Lifeline or Home Heating Fuel Assistance programs.
  • PUBLIC UTILITY COMMISSION (PUC) RULEMAKING (c)
    • PUC must adopt rules on:
    • Inflation-adjusted pricing for the affordable options, with a cap of no more than 2% annual increase.
    • Waivers of minimum speed requirements if a lower speed is not reasonably practicable, plus an alternative minimum speed.
    • Exemptions for ISPs with ≤20,000 customers if compliance would be financially unsustainable.
    • Contract parity: affordable offerings must have the same terms as regularly priced offerings except price and speed.
  • COMPLIANCE REPORTING (d)
    • Starting November 15, 2025, and annually thereafter, ISPs must submit to the Department of Public Service:
    • Description of the affordable broadband service.
    • Number of customers using the service.
    • Eligibility verification procedures.
    • Advertising/marketing samples and descriptions.
    • All retail broadband rate products and their pricing.
    • All broadband products offered in Vermont (speed and price).
    • Arrears data: number of arrears, share qualifying for affordable service, terminations for nonpayment, terminations for arrears unrelated to broadband, and restorations.
    • Any other information relevant to administering the program.
  • PERIODIC REVIEW (e)
    • Every five years (starting Oct 1, 2027), the PUC must review:
    • Whether the minimum download speed should be raised to align with FCC benchmarks or another rate deemed appropriate.
    • Whether eligibility requirements should be updated.
  • LEGISLATIVE AND ADMINISTRATIVE REPORTS (f)
    • By Dec 15, 2026 and annually thereafter, the PUC must submit a report to the General Assembly with:
    • Aggregated data from annual compliance reports.
    • Recommended changes to minimum speed and eligibility criteria.
    • Other findings and recommendations.
  • PROMOTION AND ENROLLMENT (g)
    • ISPs must actively promote affordable broadband, prominently displaying enrollment details on websites and in promotional materials.
    • PSD (Department of Public Service) should aid public information campaigns about available products.
  • ENFORCEMENT (h–i)
    • Violations constitute an unfair and deceptive act in commerce under Vermont law.
    • Willful/knowing violations could incur civil penalties up to $1,000 per violation.

Who/what is affected

  • Internet service providers operating broadband in Vermont.
  • Eligible low-income households (as defined by Lifeline eligibility or Home Heating Fuel Assistance participation).
  • Vermont Department of Public Service and the Public Utility Commission tasked with rulemaking, reporting, and oversight.
  • Consumers—particularly low-income Vermonters—who would gain access to affordable broadband options and related consumer protections.

Procedural and timeline aspects

  • Effective implementation:
    • October 1, 2025: ISPs must offer affordable broadband to eligible low-income consumers.
  • Compliance reporting:
    • First annual report due November 15, 2025; subsequent annual reporting each year.
  • Reviews and updates:
    • PUC to conduct a five-year review beginning Oct 1, 2027; ongoing every five years.
    • Annual DPS-to-General Assembly reporting beginning Dec 15, 2026.
  • Enforcement:
    • Violations subject to penalties up to $1,000 per violation.

Potential considerations for readers

  • The bill sets concrete price/speed thresholds, but allows for inflation adjustments and potential waivers or exemptions under defined conditions.
  • Annual and five-year reviews ensure the program can adapt to changing technology, market conditions, and FCC benchmarks.
  • The emphasis on transparency (pricing, eligibility, and marketing) and consumer protections aims to reduce deceptive practices and improve access for low-income Vermonters.

Compiled from official sources — confirm details with the bill’s official record.

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