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H 720

An act relating to the Cloud Computing Public Utility Act

2025-2026 Regular Session Introduced by Monique Priestley and 1 co-sponsor

Cloud computing would be regulated as a Vermont public utility to ensure reliability, security, affordability, and public accountability for state and public-sector cloud services.

Read first time and referred to the Committee on Energy and Digital Infrastructure
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WeVote Research Nonpartisan
Bill Summary · H 720

Summary of Bill H.720 (2025-2026) – Vermont

Purpose and intent

  • H.720, titled An act relating to the Cloud Computing Public Utility Act, appears to establish a framework for regulating cloud computing services as a public utility within Vermont.
  • The bill aims to address reliability, accessibility, affordability, and governance of cloud computing infrastructure and services used by state government, public institutions, and/or designated entities.
  • By designating cloud computing as a public utility, the bill seeks to ensure certain standards, oversight, and public accountability for essential cloud services.

Key provisions and changes (anticipated based on the bill’s title and typical utility-regulation structure)

  • Public utility designation: Cloud computing services (e.g., data storage, processing, and related infrastructure) would be regulated under a public utility framework. This may include requirements for reliability, service levels, and universal access where applicable.
  • Regulatory authority: Creation or empowerment of a state regulatory body (likely the Public Utility Commission or a specialized agency) to oversee cloud providers operating within Vermont. This could involve licensing, rate setting, performance metrics, and compliance oversight.
  • Rate and pricing oversight: Potential mechanisms to review and approve pricing structures for cloud services to ensure fairness and prevent price gouging, especially for state and public-sector use.
  • Service standards and reliability: Mandates for uptime, disaster recovery, data durability, security benchmarks, incident reporting, and breach notification protocols.
  • Data governance and sovereignty: Provisions addressing where data can be stored (data residency), data protection, encryption requirements, access controls, and cross-border data transfer rules.
  • Procurement and competition: Requirements to prioritize or encourage competition among cloud providers, including transparent procurement processes, performance-based contracting, and consideration of local vendors or in-state capacity.
  • Public accountability and transparency: Reporting obligations to the legislature or public, including performance dashboards, annual reports, and response to inquiries.
  • State and public-sector use: Specific applicability to Vermont state government agencies, public schools, healthcare providers, or other public institutions that rely on cloud services.

Who or what would be affected

  • Cloud computing providers operating in Vermont (including public and private sector vendors offering storage, processing, and related services).
  • State government agencies and public institutions that contract for cloud services or rely on cloud-based infrastructure.
  • Ratepayers and taxpayers if the framework results in regulated rates, service obligations, or cost recoveries related to cloud services.
  • Public-interest stakeholders such as privacy advocates, cybersecurity professionals, and local businesses seeking clarity on procurement and data governance.

Procedural and timeline aspects

  • Referral and consideration: As of the latest action, the bill was read for the first time and referred to the Committee on Energy and Digital Infrastructure (dated January 20, 2026). This indicates initial committee review and potential hearings, amendments, and expert testimony.
  • Next steps in the legislative process: The committee will assess technical feasibility, fiscal impact, compatibility with existing statutes, and potential amendments. If advanced, the bill would proceed to floor debate, possible cross-chamber negotiation, and eventually governor action (signing, veto, or pocket veto) depending on Vermont’s legislative timeline.

Potential impact and considerations

  • Establishing cloud computing as a public utility could enhance reliability and uniform standards across state uses but may introduce regulatory requirements that affect pricing, deployment speed, and vendor negotiations.
  • Data security, privacy, and residency rules would be central given the sensitivity of government and public data stored or processed in the cloud.
  • The act could influence procurement practices, encouraging transparency and competition while aligning with state strategic goals for digital infrastructure resilience.

Note: This summary reflects the bill’s stated purpose and typical provisions inferred from its title and designation. For precise language, definitions, enacted provisions, and fiscal notes, please refer to the full text and any amendments adopted by committee.

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

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