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Insurers and small‑business advocates back exemptions, ask for clarity and support in Vermont privacy bill
Summary
Insurance representatives praised exemptions for regulated industries in the draft; small‑business speakers urged clear thresholds, practical guidance and low‑cost compliance steps. A bank representative also flagged a citation error in the draft. Committee Q&A explored the 35,000‑consumer threshold and cyberinsurance impacts.
Stakeholders representing banks, insurers and small businesses addressed the House Commerce & Economic Development committee about operational and statutory details in S.71.
A speaker reading remarks for the Vermont Bankers Association highlighted appreciation for exemptions in the draft but flagged a technical error: a Bank Holding Company Act citation should read '12' rather than '18' on page 23 of the draft. Jamie Field, representing the American Property Casualty Insurance Association, told the committee that insurers are subject to state and federal regimes (including GLBA and Vermont’s Insurance Data Security Law) and welcomed data‑level and entity exemptions to avoid duplicative regimes and conflicting notice requirements.
Small‑business consultant Kimberly Lancaster (privacy consulting owner) and Julie Law (Public Assets Institute) stressed practical impacts. Lancaster said many small businesses are unaware of breach laws and face disproportionate costs when breaches occur; she urged clear, phased guidance, vendor vetting, simple privacy basics (updated privacy policies, two‑factor authentication), and offered pro bono help for local firms. She also discussed the 35,000‑consumer threshold in the draft and advised that firms plan for growth and adopt baseline protections early.
Committee members asked about how franchise relationships and vendor contracts might affect controller status and whether a small firm that participates in a chain could be swept into the statute’s threshold. Speakers said the answer depends on contract arrangements and structural relationships, underscoring the need for clear statutory guidance and outreach to small businesses.
The committee recessed for a short break; no votes on the bill were recorded in this transcript.
