Vt. Senate Panel Opts for Industry-Favored Privacy Bill

In an apparent win for industry, the Vermont Senate Institutions Committee voted 5-0 Thursday to replace the text of a comprehensive privacy bill (S-71) with that of S-93. S-93, which the Vermont Chamber of Commerce and other business groups preferred, lacks a private right of action and is much like Connecticut's privacy law.

"I would like to get more testimony tomorrow to make sure that there aren't folks who want to testify who haven't been able to, but what I would like to do now is to ... strike all of [S-]71 and replace it with [S-]93 and move from there," said Chair Wendy Harrison (D) before the vote. She said the committee would vote on the amended bill Friday.

Earlier in the hearing about S-71, the Vermont Senate Institutions Committee examined the differences between the bills in an effort to combine the two into one piece of legislation. Rik Sehgal, legislative counsel from the Office of Legislative Counsel, spoke at the livestreamed hearing about differences between the two pieces of legislation, which, he said, are "probably 90% the same."

"But that 10% is pretty important," Sehgal added.

Mieko Ozeki, co-founder of Vermont Womenpreneurs supported the bill, but suggested ways to assist small businesses even more, including clear communication, practical compliance guidelines and an extended education period. "As an advocate for small businesses, I believe that S-71 creates a necessary framework that protects consumer privacy while allowing Vermont businesses to operate effectively in today's digital environment," she said. "With proper implementation support, including comprehensive education, ongoing guidance and training for business resource organizations, this legislation can enhance consumer trust while allowing businesses to thrive."

Molly Mahar, president of trade association Ski Vermont, testified against the bill due to its private right of action, echoing similar testimony from earlier in the week (see 2503110053). "S-71 includes this against larger businesses that could readily be used by unscrupulous lawyers from class action lawsuits with little effort on their part," she said. "This will put a target on our larger businesses, including perhaps some ski areas, for class action lawsuits, which will benefit lawyers, but not so much the consumers."

Jessa Barnard, executive director of the Vermont Medical Society, expressed support for rival privacy bill S-93 over S-71, as did the Vermont Chamber and Sen. Russ Ingalls (R) on Tuesday (see 2503110053). "We definitely support data privacy legislation," Barnard said. "The two areas that are important for us in the way they are addressed in S-93 is the exemption for [Health Insurance Portability and Accountability Act]-covered entities and not including a private right of action."

Testimony Wednesday from consumer protection advocates, however, urged passage of S-71, saying it is better for consumers, due to its strong data minimization rules among other things (see 2503120060).