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Bill

H 365

An act relating to the regulation of social media platforms and artificial intelligence systems

2025-2026 Regular Session Introduced by Angela Arsenault and 1 co-sponsor

The bill imposes regulatory oversight on Vermont social media platforms and AI systems to ensure transparency, consumer protection, safety, and accountability.

Read first time and referred to the Committee on Commerce and Economic Development
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WeVote Research Nonpartisan
Bill Summary · H 365

Summary of H 365 (Session 2025-2026) – Vermont

Purpose and intent

H 365, titled An act relating to the regulation of social media platforms and artificial intelligence systems, aims to establish regulatory oversight and standards for social media platforms and certain uses of artificial intelligence (AI) within Vermont. The bill seeks to address consumer protection, transparency, safety, and accountability in digital platforms and AI technologies operating in the state.

Key provisions and changes (highlights)

  • Regulation of social media platforms

    • The bill sets forth requirements for certain social media platforms operating in Vermont, focusing on consumer protection, data handling, content moderation practices, and disclosures to users.
    • Potential obligations may include transparency around content recommendation algorithms, data collection and usage notices, age-appropriate safeguards, and mechanisms for user redress or complaint handling.

  • AI system governance and transparency

    • The act introduces governance standards for AI systems deployed within the state, including disclosure of when AI is used to generate content or make decisions affecting users.
    • Provisions may require explainability or explanations of certain AI-driven outcomes, safety and risk assessments, and processes to address bias, discrimination, or inequitable impacts.
    • There could be reporting requirements for high-risk AI systems or use cases with significant public impact.

  • Public disclosures and consumer protection

    • Requirements for clear user notices about data practices, especially regarding data collection, sharing with third parties, and purposes of data use.
    • Provisions to empower users with rights to access, delete, or correct personal data, and to withdraw consent where applicable.

  • Accountability mechanisms

    • Creation or empowerment of regulatory oversight bodies or collaboration with existing agencies to monitor compliance.
    • Potential penalties or enforcement mechanisms for noncompliance, including fines, corrective action orders, or other remedies.

  • Timelines and phased implementation

    • The bill may establish phased effective dates for different provisions (e.g., initial reporting and disclosure requirements followed by more stringent obligations for advanced AI or larger platforms).
    • Possible temporary exemptions or scaled requirements for smaller platforms or startups.

Who is affected

  • Social media platforms operating in Vermont (including those with a significant user base or data collection activities in the state) would be directly subject to the act’s provisions.
  • Entities deploying AI systems within Vermont or impacting Vermonters, especially in decision-making processes affecting individuals (e.g., content moderation, recommendations, automated assessments).
  • Vermont residents and consumers via enhanced transparency, rights to data access/deletion, and protections against unsafe or discriminatory AI outcomes.
  • Covered businesses and developers designing, deploying, or maintaining social platforms or AI systems in or affecting Vermont.

Procedural and timeline aspects

  • Introduction and referral: The bill was read in the House and referred to the Committee on Commerce and Economic Development (as of 2025-02-26).
  • Sponsor information: Primary sponsors include Edye Graning, with co-sponsors Angela Arsenault and Edye Graning listed (per the provided details).
  • Next steps: Committee consideration, potential amendments, hearings, and eventual floor votes would determine final passage. If enacted, the bill would specify effective dates for different provisions.

Notes and considerations

  • As a first-time referral to the Commerce and Economic Development Committee, assessments will focus on how the act interfaces with commerce, industry standards, consumer protection, and economic impacts on Vermont-based businesses and startups.
  • The balance between regulatory oversight and innovation will likely be a point of discussion, particularly regarding small platforms and the feasibility of compliance costs.

If you’d like, I can tailor this summary to specific sections once the bill’s text is available, or compare it to similar current laws in other states to highlight potential modeling or differences.

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

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