Driving while using a hand-held device is now illegal in Vermont. As of October 1, 2014, drivers may not use hand-held cell phones, music players, or computers. Drivers may use some mobile devices if they employ hands-free technology such as "Bluetooth" or voice activation. The new law imposes fines of up to $200. For more information on the new law, see: Vermont's Cell Phone Ban Explained, where you can also access links to frequently asked questions, and a guide from the Vermont Agency of Transportation that describes hand-free options for using a cell phone in the car.
Another good resource is this broadcast from Vermont NPR: The Logistics of the Hand-held Cell Phone Ban, which describes what the law allows and does not allow.
Vermont joins New York state and Quebec, it's neighbors in banning cell phones while driving. New Hampshire has a similar law that will go into effect in July of 2015. See: Gov. Hassan signs handheld cellphone driving ban in the Seacoast Online.