Regulon.AI — VT-H-0644 · VT H 644 (AI in Mental Health Services)

Summary

Prohibits any person, corporation, or entity from offering, providing, or advertising mental health services in Vermont that use artificial intelligence, except where a licensed mental health professional uses AI for limited administrative support or transcription under defined conditions. Mental health professionals are specifically prohibited from using AI to make therapeutic decisions, issue direct therapeutic communications, generate treatment plans, or detect or interpret emotions or mental states. AI-based transcription and recording in therapeutic settings requires prior written disclosure and informed, revocable consent from the patient or guardian. Violations are deemed violations of the Vermont Consumer Protection Act, carrying a $10,000 civil penalty per violation with both AG enforcement and a private right of action. Misuse by licensed professionals also constitutes unprofessional conduct subject to disciplinary action.

Enforcement & Penalties

Enforcement Authority

Attorney General enforcement under the Consumer Protection Act (9 V.S.A. chapter 63, subchapter 1). The AG has authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions. Private parties have the same rights and remedies as provided under 9 V.S.A. chapter 63, subchapter 1. Separately, violations by licensed mental health professionals constitute unprofessional conduct under 3 V.S.A. § 129a, enforceable through professional licensing disciplinary proceedings.

Penalties

Each violation of 18 V.S.A. § 7115 carries a civil penalty of $10,000 per violation as set forth in 9 V.S.A. § 2461. Private parties have the same rights and remedies as provided under 9 V.S.A. chapter 63, subchapter 1. Nothing in the statute precludes or supplants any other statutory or common law remedies. For licensed professionals, violations also constitute unprofessional conduct subject to license denial, suspension, or other disciplinary action.

Who Is Covered

"Mental health professional" means an individual licensed, certified, or rostered, respectively, to provide mental health services as a physician pursuant to chapter 23 or 33 of this title; an advance practice registered nurse specializing in psychiatric mental health pursuant to chapter 28 of this title; a psychologist pursuant to chapter 55 of this title; a peer support provider or peer recovery support specialist pursuant to chapter 60 of this title; a social worker pursuant to chapter 61 of this title; an alcohol and drug abuse counselor pursuant to chapter 62 of this title; a clinical mental health counselor pursuant to chapter 65 of this title; a marriage and family therapist pursuant to chapter 76 of this title; a psychoanalyst pursuant to chapter 77 of this title; or an applied behavior analyst pursuant to chapter 95 of this title; and a nonlicensed or noncertified psychotherapist, noncertified psychoanalyst, or any other professional that provides mental health services.

Compliance Obligations 6 obligations · click obligation ID to open requirement page

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.3 · Deployer · HealthcareChatbot

18 V.S.A. § 7115(b)

Plain Language

No person, corporation, or entity may offer, provide, or advertise mental health services in Vermont that use AI in whole or in part — unless the use falls within the narrow exceptions for licensed mental health professionals under 26 V.S.A. § 7101 (administrative support and transcription with consent). This is a broad prohibition that applies to any entity, not just licensed professionals. Companies offering AI therapy chatbots, AI counseling products, or AI-powered mental health platforms to Vermont users are categorically prohibited from doing so. The only carve-out is for licensed mental health professionals using AI in the limited ways authorized by § 7101.

Statutory Text

(b) A person, corporation, or entity shall not offer, provide, or advertise mental health services in the State that use artificial intelligence in whole or in part, except as authorized pursuant to 26 V.S.A. § 7101.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.2 · Professional · Healthcare

26 V.S.A. § 7101(d)

Plain Language

Licensed mental health professionals are categorically prohibited from using AI to make therapeutic decisions, issue direct therapeutic communications, generate treatment plans or recommendations, or detect or interpret emotions or mental states. They are also prohibited from offering, providing, or advertising any mental health services that use AI in whole or in part — except for the narrow carve-outs in subsection (b) for administrative support (with professional review) and transcription (with written disclosure and consent). The scope of 'therapeutic communication' is very broad and includes any interaction intended to diagnose, treat, provide recovery support, or advise on mental health matters. This effectively confines AI use by mental health professionals to back-office and documentation functions only.

Statutory Text

(d) Prohibited uses. A mental health professional shall neither: (1) use artificial intelligence in the State to make therapeutic decisions, issue direct therapeutic communications, generate treatment plans or recommendations, or detect or interpret emotions or mental states; nor (2) offer, provide, or advertise mental health services in the State that use artificial intelligence in whole or in part, except as provided in subsection (b) of this section.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1 · Professional · Healthcare

26 V.S.A. § 7101(b)(1)

Plain Language

Mental health professionals may use AI for administrative support tasks — such as scheduling, billing, logistics communications, clinical note preparation, deidentified data analysis, and resource organization — but only if the professional personally reviews and assumes responsibility for all tasks performed, all outputs created, and all data use associated with the AI system. This is the primary permissible use carve-out. The definition of 'administrative support' expressly excludes therapeutic communication, so AI may not be used for any patient-facing clinical interaction even under this exception. The professional's review-and-responsibility obligation is a condition of the permission, not an independent obligation — failure to review and assume responsibility means the use is unauthorized.

Statutory Text

(b) Permitted uses. (1) A mental health professional may use artificial intelligence for administrative support to the extent that the professional reviews and assumes responsibility for all tasks performed by, outputs created by, and data use associated with the artificial intelligence system employed.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.4 · Professional · Healthcare

26 V.S.A. § 7101(b)(2)

Plain Language

Before using AI for transcription or recording in a therapeutic setting, the mental health professional must: (1) provide written notice to the patient or client (or their legal guardian) stating the specific purpose of the AI use and that any resulting transcription or recording is subject to existing mental health confidentiality protections under 18 V.S.A. §§ 1881 and 7103; and (2) obtain consent, which must be an explicit, written, voluntary, informed, and revocable affirmative act. Both steps must be completed before the AI transcription or recording begins — this is a prerequisite, not something that can be obtained retroactively.

Statutory Text

(2) If a mental health professional uses artificial intelligence for transcription and recording purposes, the mental health professional shall first: (A) inform the patient or client, or the patient's or client's legal guardian, in writing of the specific purpose for which artificial intelligence is being used and that any transcription or recording performed by artificial intelligence shall be subject to the disclosure prohibitions in subsection (c) of this section; and (B) obtain consent from the patient or client, or the patient's or client's legal guardian.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1 · Professional · Healthcare

26 V.S.A. § 7101(c)

Plain Language

All AI-generated outputs from administrative support tasks — including transcription and recording — are subject to the same confidentiality protections that apply to mental health records under existing Vermont law (18 V.S.A. §§ 1881 and 7103). This means AI-processed data receives the same disclosure prohibitions as therapist-created records. Practitioners must ensure that any AI vendor or system used for administrative support complies with these existing confidentiality requirements.

Statutory Text

(c) Confidentiality. Any administrative support tasks conducted using artificial intelligence shall be subject to the disclosure prohibitions in 18 V.S.A. §§ 1881 and 7103, including transcription and recording.

Other · Healthcare

3 V.S.A. § 129a(a)(30)

Plain Language

Violation of the AI restrictions in 26 V.S.A. § 7101 by any mental health professional now constitutes unprofessional conduct under Vermont's professional licensing framework. This means that in addition to Consumer Protection Act penalties, a licensed mental health professional who misuses AI in a therapeutic setting is subject to professional disciplinary action, including potential license denial, suspension, or revocation. This provision does not create a new substantive obligation — it connects the § 7101 prohibitions to the existing disciplinary enforcement framework.

Statutory Text

(30) For any mental health professional, misuse of artificial intelligence pursuant to 26 V.S.A. § 7101.