Committee hears bill to register EdTech providers and pause classroom chatbots through 2028

A legislative committee on Friday reviewed H.650, a bill that would create a registration system for educational-technology (EdTech) providers and temporarily bar classroom use of chatbots for teaching and learning.

Rick Segal of the Office of Legislative Council told the committee that the bill adds an EdTech subchapter requiring providers of software, applications or platforms that collect, process or transmit student data to register and submit contact information, product lists, links to privacy policies and the names of schools where paid contracts exist. "This is an educational technology bill," Segal said in opening remarks.

Segal said the Senate removed fee and penalty language present in the House version, leaving the registration largely voluntary apart from existing requirements for foreign entities doing business in state. "Those are gone," he said of the fee and penalty provisions, adding the bill now relies on existing business-registration rules for enforcement.

The bill also would impose a two-year pause: "No school shall allow students to use a chatbot for teaching and learning purposes until 06/30/2028," Segal read, while preserving two exceptions. A principal or head of school may grant an exception if a use is "educationally warranted" (the bill does not define that term), and students who require chatbots under a 504 or other accommodation may use them for access needs.

Committee members pressed staff on scope. Several members asked whether distributors or resellers would be captured by the provider definition and whether out-of-state firms must register as foreign entities; Segal said the provision targets the entity that provides or makes the product in use at a school and that out-of-state companies doing business in Vermont should register as foreign entities with a registered agent.

The measure would also create a legislative working group to inventory EdTech products in use, consult with the Agency of Education, the Vermont Superintendents Association and the Vermont Independent Schools Association, interview stakeholders (teachers, parents and child-privacy advocates), set certification criteria and recommend whether students or parents should have an opt-out right. Segal said the group would begin meeting on or before Aug. 5 and submit proposed legislation and findings by Dec. 30.

On fiscal impacts, committee staff estimated costs to update Secretary of State information-technology systems at about $70,000–$90,000 in FY27 and roughly $10,000 in per diem reimbursement for working-group members. "I'm estimating between 70 and 90,000 in fiscal impact for fiscal year 2027," said John Gray (first appearance as the fiscal presenter), adding that potential district-level administrative costs were not estimated and would depend on whether schools hired staff or redistributed duties.

Members said they want more stakeholder testimony before taking final action, including from school boards, superintendents, principals and teachers, and representatives of the NEA. The committee agreed to request those witnesses and revisit the bill next week.

The committee did not take a vote on the measure at the session.