Regulon.AI — VT-H-0816 · VT H 816 (AI in Mental Health Services)

Summary

Vermont H.816 regulates the use of artificial intelligence in the provision of mental health services. It imposes two categories of obligations: (1) a broad prohibition on any person, corporation, or entity offering, providing, or advertising mental health services that represent AI as providing therapeutic judgment, diagnosis, treatment, or therapeutic communication (18 V.S.A. § 7115); and (2) specific rules for licensed mental health professionals permitting AI for administrative and supplementary support while prohibiting AI from independently making therapeutic decisions, diagnosing, determining treatment, or generating treatment plans (26 V.S.A. § 7101). Patient consent is required before AI is used to record identifiable therapeutic communications. Violations of the advertising/service prohibition are enforceable as Consumer Protection Act violations by the Attorney General and through private action; misuse by licensed professionals also constitutes unprofessional conduct subject to licensing discipline. Religious counseling, uncertified peer support, and generalized educational self-help resources are exempt.

Enforcement & Penalties

Enforcement Authority

Attorney General enforcement under Vermont Consumer Protection Act (9 V.S.A. chapter 63). The Attorney General 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, misuse of AI by mental health professionals constitutes unprofessional conduct under 3 V.S.A. § 129a, enforceable through professional licensing disciplinary proceedings including license denial or other disciplinary action by the applicable licensing board.

Penalties

Violations of 18 V.S.A. § 7115 are deemed violations of the Vermont Consumer Protection Act (9 V.S.A. chapter 63). Private parties have the same rights and remedies as provided under 9 V.S.A. chapter 63, subchapter 1, which includes injunctive relief, actual damages, and other remedies available under the CPA. Violations by licensed mental health professionals also constitute unprofessional conduct subject to professional disciplinary sanctions including license denial or revocation. Nothing in the act precludes or supplants any other statutory or common law remedies.

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 except as exempted in subsection (e) of this section.

Compliance Obligations 4 obligations · click obligation ID to open requirement page

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

18 V.S.A. § 7115(b)

Plain Language

No person, corporation, or other entity may offer, provide, or advertise mental health services in Vermont that represent AI as providing therapeutic judgment, diagnosis, treatment, or therapeutic communication. This is a blanket prohibition covering any entity — not just licensed professionals — and targets the marketing and delivery of AI-as-therapist services. The carve-out preserves the ability to use and disclose AI for administrative, documentation, operational, or quality-improvement purposes, so long as a mental health professional retains clinical responsibility under 26 V.S.A. § 7101. Violations are enforceable under the Vermont Consumer Protection Act.

Statutory Text

(b) A person, corporation, or other entity shall not offer, provide, or advertise mental health services in the State that represent artificial intelligence as providing therapeutic judgment, diagnosis, treatment, or therapeutic communication. Nothing in this subsection shall prohibit the use or disclosure of the use of artificial intelligence for administrative, documentation, operational, or quality-improvement purposes when a mental health professional retains clinical responsibility as authorized pursuant to 26 V.S.A. § 7101.

HC-02 AI in Licensed Professional Practice Restrictions · HC-02.1 HC-02.2 · Professional · Healthcare

26 V.S.A. § 7101(b), (d)(1)-(2)

Plain Language

Mental health professionals may use AI for administrative support (scheduling, billing, claims processing), supplementary support, and operational/quality-improvement tasks — but must retain sole responsibility for all therapeutic decisions. AI may not independently make therapeutic decisions, independently diagnose, independently determine treatment, or independently generate treatment plans. Importantly, the definition of 'therapeutic decision' carves out algorithmic risk scoring, data analytics, and clinical decision support tools used under professional supervision — these are not prohibited. The professional must review, modify where necessary, and approve the final product of any AI-assisted work. Professionals remain free to disclose their use of AI for permitted purposes to patients.

Statutory Text

(b) Permitted uses. A mental health professional may use artificial intelligence systems for administrative support, supplementary support, and operational or quality-improvement functions, provided the professional retains sole responsibility for therapeutic decisions. Permitted uses include scheduling, billing, coding, and claims processing; transcription and documentation support; preparation and maintenance of clinical records; deidentified data analysis for quality improvement; and workforce and capacity planning where the mental health professional reviews, modifies where necessary, and approves the final product. (d) Prohibited uses. (1) A mental health professional shall not use artificial intelligence in a manner that allows the artificial intelligence to independently make therapeutic decisions, independently diagnose, independently determine treatment, or independently generate treatment plans. (2) Nothing in this subsection shall prohibit a mental health professional from disclosing or describing the mental health professional's use of artificial intelligence for administrative support or supplementary support purposes to a prospective, current, or former patient or client.

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

26 V.S.A. § 7101(c)(1)-(2)

Plain Language

When mental health professionals use AI for administrative or supplementary support tasks — including transcription and recording — all existing confidentiality obligations under Vermont's mental health disclosure statutes (18 V.S.A. §§ 1881 and 7103) continue to apply. Additionally, before using AI to record identifiable therapeutic communications, the professional must obtain written, informed, revocable consent from the patient or client. Consent obtained through broad terms-of-use agreements, passive actions, or deceptive practices does not qualify. Consent is not required for administrative or deidentified operational uses of AI.

Statutory Text

(c) Confidentiality and consent. (1) Any administrative support or supplementary support tasks conducted using artificial intelligence, including transcription and recording, shall be subject to the disclosure prohibitions in 18 V.S.A. §§ 1881 and 7103. (2) Consent by a patient or client is required when artificial intelligence is used to record identifiable therapeutic communications.

Other · Healthcare

3 V.S.A. § 129a(a)(30)

Plain Language

Misuse of AI by any mental health professional — as defined in 26 V.S.A. § 7101 — is added to Vermont's list of unprofessional conduct. This means violations of the AI use restrictions (prohibited independent therapeutic decision-making, failure to obtain consent for AI recording) can trigger professional licensing disciplinary proceedings, including license denial or other disciplinary action. This applies whether the conduct occurred within or outside Vermont.

Statutory Text

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