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House advances data‑broker study and deletion‑mechanism bill after debate over federal exemptions
Summary
Lawmakers amended and ordered third reading of HB21 after extended debate about whether Vermont’s deletion right would conflict with federally regulated data uses. Sponsor said the $50,000 appropriation will fund a Secretary of State study to design an accessible deletion mechanism; opponents warned about impacts on credit, fraud prevention and DMV records.
The Vermont House on Tuesday amended and ordered third reading of House Bill 21, a bill that would fund a study into a consumer deletion mechanism for data brokers and create a pathway to give Vermonters a way to request deletion of their personal data.
Member from Putney, speaking for the Committee on Appropriations, said the bill includes a $50,000 appropriation to the Secretary of State’s office to hire a consultant and study the feasibility of “an accessible deletion mechanism” that would let consumers verify that data held by a data broker has been deleted. He said the Secretary of State must file an interim report to the House Committee on Commerce and Economic Development and the Senate Committee on Economic Development, Housing, and General Affairs by Dec. 1, 2027, with a final report by Dec. 1, 2028.
“It's a reminder that our data is ours,” Member from Putney said in floor remarks.
Opponents raised concerns that the statutory deletion right as drafted lacks meaningful exemptions for information already governed by federal law. The Member from Castleton said HB21 “creates a deletion right with no meaningful exemption for data that federal law already tightly regulates,” citing the Fair Credit Reporting Act, the Gramm‑Leach‑Bliley Act and the Driver’s Privacy Protection Act as examples. The Castleton member warned that forcing data deletion could impair fraud prevention, identity verification and insurance underwriting.
The sponsor and questioners engaged in extended exchanges about how the bill defines exemptions. The sponsor said the bill favors narrowly tailored, use‑case exemptions rather than broad, entity‑level carveouts, and that the intent is to avoid leaving consumers unable to pursue legitimate services while still giving them a route to learn which entities may hold their data and request deletion.
The sponsor acknowledged late concerns from some stakeholders — including those representing education and motor‑vehicle records — and said staff would continue discussions as the bill moves through the legislative process. “There remains more work to be done on this,” the sponsor said.
The House approved the committee’s amendment by voice vote and ordered the bill read a third time.
Next steps: HB21 will return for third reading with the committee’s amendment on the calendar; the Secretary of State’s study and the specified reporting deadlines remain in the amended text.
