Gov. Phil Scott on Thursday vetoed a sweeping data privacy bill that won broad support this year in the Vermont Legislature.
The bill, H.121, was a subject of fierce debate throughout the legislative session. The final deal struck between House and Senate negotiators marked a compromise between those who wanted to see strict limitations on the use and sale of Vermonters’ digital data and those who feared such restrictions would place an undue burden on businesses.
In a veto message delivered to lawmakers Thursday, the Republican governor appeared sympathetic to the latter concerns.
He wrote that the bill’s roadmap to a private right of action — allowing Vermonters to sue those in violation of the law — “would make Vermont a national outlier, and more hostile than any other state to many businesses and non-profits – a reputation we already hold in a number of other areas.”
“I appreciate this provision is narrow in its impact, but it will still negatively impact mid-sized employers, and is generating significant fear and concern among many small businesses,” Scott wrote.
The bill also included provisions to compel large social media companies such as Meta and TikTok to alter their addictive algorithms for users under 18 years old.
In his veto message, Scott called for a more cautious approach to that part of the bill.
“While this is an important goal we can all support, similar legislation in California has already been stopped by the courts for likely First Amendment violations,” Scott wrote. “We should await the decision in that case to craft a bill that addresses known legal pitfalls before charging ahead with policy likely to trigger high risk and expensive lawsuits.”
In a press release Thursday, House Speaker Jill Krowinski, D-Burlington, criticized Scott’s veto, noting that a version of the bill passed the House by a vote of 139-3. She called Scott’s decision “disappointing, especially in light of all his discussions around bi-partisan, collaborative work.”
The goal of the legislation, Krowinski said, was “to ensure the security and dignity of every Vermonter in the digital age while also making sure that businesses do not face frivolous lawsuits from bad actors.”
The speaker suggested that industry lobbying had played a role in Scott’s veto. “It is unfortunate that so much misinformation has been spread about this bill, but we know that Big Tech and their deep pockets are fearful of no longer having unrestricted access to Vermonters’ personal information.”
Joining Krowinski in her press release Thursday was a top House Republican, Rep. Mike Marcotte, R-Coventry. He chairs the House Committee on Commerce and Economic Development, which debated and advanced the legislation.
“I am very disappointed that Governor Scott couldn’t get past the misinformation that national tech-supported business associations, with support from Vermont business associations, used to spread fear among our Vermont business community,” Marcotte wrote, adding, “Vermont citizens are the losers today.”
The Vermont Kids Code Coalition, which advocated for the provisions intended to protect young people, issued its own statement expressing disappointment with Scott’s veto.
“After months of working closely with legal, medical, and technology experts we are confident that legislators understand and appreciate the urgent need for sound legislation that protects children and teens by design and default and spurs innovation to put such protections in place,” the coalition wrote.
Scott’s vetoes on Thursday of H.121 and H.687, a land use reform and housing bill, marked Scott’s seventh and eighth vetoes this year — and his 51st and 52nd vetoes since he took office, by far a record in Vermont history, according to data compiled by the Secretary of State’s Office.
Lawmakers will have a chance to override each of these vetoes — with two-thirds majorities in both chambers — next week when they reconvene at the Statehouse for a veto session.
Read the story on VTDigger here: Despite broad support in the Legislature, Phil Scott vetoes data privacy legislation.