Regulon.AI — VT-S-0241 · VT S 241 (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 in whole or in part, except where a licensed mental health professional uses AI for limited administrative support or transcription with informed consent. 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 may be used for administrative tasks like scheduling, billing, and record-keeping only if the professional reviews and assumes responsibility for all AI outputs and data use. AI transcription requires written informed consent from the patient or guardian. Violations by any person or entity are deemed Consumer Protection Act violations carrying a $10,000 civil penalty per violation with AG and private enforcement; violations by licensed professionals also constitute 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. For mental health professionals, violations of 26 V.S.A. § 7101 constitute unprofessional conduct under 3 V.S.A. § 129a, enforceable through professional licensing discipline including denial of a license or other disciplinary action.

Penalties

Each violation of 18 V.S.A. § 7115 carries a civil penalty of $10,000.00 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 section precludes or supplants any other statutory or common law remedies. For mental health professionals, violations constitute unprofessional conduct subject to license denial 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 · DeployerDeveloper · 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. This is a near-total ban on AI-delivered mental health services. The only exception is where a licensed mental health professional uses AI for the limited administrative support and transcription purposes authorized under 26 V.S.A. § 7101. This prohibition applies broadly — it covers any entity, not just licensed professionals — meaning AI therapy chatbot operators, technology companies, and any other entity offering AI-powered mental health services in Vermont are covered. Violations are deemed Consumer Protection Act violations with a $10,000 per-violation civil penalty.

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 with patients, generate treatment plans or recommendations, or detect or interpret emotions or mental states. They are also prohibited from offering, providing, or advertising any AI-powered mental health services, except for the narrow administrative support and transcription uses permitted under subsection (b). This is a professional conduct prohibition — violations constitute unprofessional conduct under 3 V.S.A. § 129a, exposing the professional to license denial or disciplinary action. The prohibition extends to both licensed and non-licensed/non-certified practitioners who provide mental health services.

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, record-keeping, deidentified data analysis, and organizing referrals — but only if the professional personally reviews and assumes responsibility for all tasks performed by, outputs created by, and data use associated with the AI system. This is the sole permitted use of AI in mental health service delivery (alongside transcription under subsection (b)(2)). The professional responsibility requirement is absolute: delegating review to another AI system or failing to review AI outputs before they are used would violate this provision. Administrative support explicitly excludes therapeutic communication.

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 of therapeutic sessions, the mental health professional must (1) inform the patient (or their legal guardian) in writing of the specific purpose of the AI use and that any transcription or recording will be subject to existing mental health confidentiality protections under 18 V.S.A. §§ 1881 and 7103, and (2) obtain written, informed, revocable consent. Both steps must occur before the AI transcription or recording begins. The consent requirement is strict — it must be explicit, affirmative, in writing, voluntary, informed, and revocable at any time. Services may not proceed with AI transcription absent this consent.

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 administrative support tasks performed using AI — including transcription and recording — remain subject to existing Vermont mental health confidentiality protections under 18 V.S.A. §§ 1881 (general health information confidentiality) and 7103 (mental health treatment information confidentiality). This means AI-processed patient data may not be disclosed in violation of these existing confidentiality statutes. The provision does not create a new confidentiality standard but expressly extends existing prohibitions to cover AI-processed data in therapeutic settings.

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

Misuse of AI by a mental health professional as defined in 26 V.S.A. § 7101 is added to the statutory list of unprofessional conduct under Vermont's professional regulation framework. This means violations of the AI restrictions in § 7101 — including prohibited therapeutic uses and failure to obtain consent for AI transcription — can trigger professional disciplinary proceedings, including license denial or revocation, in addition to any civil penalties. This provision does not create new substantive obligations; it links the § 7101 obligations to the existing disciplinary enforcement mechanism.

Statutory Text

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