S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

The House Environment Committee spent the week taking extensive testimony on S.325, hearing from a wide range of stakeholders. A clear theme emerged: growing concern with how Act 181 is being implemented.

While S.325 to date has focused on timing and technical fixes, the conversation quickly shifted to broader issues of trust, process, and how land use decisions are experienced on the ground.

Act 181 was designed as a collaborative, bottom-up effort, but testimony highlighted a disconnect between that intent and a more top-down implementation, particularly in rulemaking and mapping, where stakeholders were considered only advisory and public engagement happened too late. These conversations ultimately raised further questions regarding land use decisions.

In testimony this week, the Vermont Chamber supported key elements of S.325 that support greater clarity and stability in implementation, including:

  • Maintaining interim housing exemptions to avoid disruption
  • Improving clarity and predictability in Act 250 jurisdiction
  • Continuing progress on Tier 1 designations

The Vermont Chamber supported provisions in S.325 that improve clarity and stability, including maintaining interim housing exemptions, clarifying Act 250 jurisdiction, and advancing Tier 1 designations. At the same time, concerns centered on the role and approach of the Land Use Review Board.

Testimony also signaled a shift in thinking, extending timelines to fix the broken process may no longer be enough to rebuild trust. Alternatives discussed included moving away from the current tiered mapping approach, expanding community-driven engagement outside of the land use review board, and refocusing the Land Use Review Board on consistent, predictable Act 250 administration.

As part of that discussion, a different path forward was raised:

  • Stepping away from the tiered mapping approach and rulemaking under the Land Use Review Board
  • Establishing a broader intentional community engagement effort to answer the questions at the core of protecting natural resources through a trusted community development organization
  • Refocusing the Land Use Review Board on administering Act 250 to ensure a process that is predictable, fair, and timely statewide

S.325 is no longer strictly a technical bill—it has become a focal point for a broader conversation about land use, implementation, and trust in Vermont.

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Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

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If Decisions Don’t Get Made

If Decisions Don't Get Made

As the legislative session nears adjournment, attention is on what will pass—the budget, the yield bill, the final numbers. But a more consequential question is: what if they don’t?

The impacts aren’t theoretical. Without a signed budget, Vermont risks partial shutdowns, disrupted payments, and long-term credit effects. Without a yield bill, default property tax rates could trigger sharp increases—42.4% for nonhomestead and 13.7% for homestead, about $325 million more than needed for the Education Fund and leaving school districts, employers, and property owners without legislative adjustment to these costs.

This uncertainty doesn’t stay in Montpelier. It stalls planning, delays hiring, and pauses investment—not from lack of will, but lack of clarity. Timing matters. Early decisions create stability; late ones create pressure; no decision creates uncertainty—compounding Vermont’s fiscal and affordability challenges.

These bills are also signals—about alignment, decision-making, and predictability. Over time, those signals shape whether businesses expand, invest, or look elsewhere. The final days of session aren’t just procedural—they influence confidence in Vermont’s economic environment.

It is important to focus on what policy decisions mean in practice—connecting them to real business impacts and advancing a more predictable, affordable future. The budget and yield bill will pass. The question is how: on time with clarity, or late with ripple effects beyond Montpelier.

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Amy Spear

President

Fiscal Policy, Taxation, Tourism and Hospitality, Workforce Development

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Issue Updates from the State House | Week of April 6, 2026

Issue Updates from the State House

Week of April 6, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Tax Conformity: The Senate Finance Committee reviewed H.933, a bill making several targeted changes to the state’s tax code. As this bill progresses, the creation of a competitive, predictive tax environment would be ideal for Vermont’s businesses.
  • Commercial Property Assessed Clean Energy (C-PACE): The House Energy and Digital Infrastructure Committee advanced S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings. The bill’s language now moves to the House Commerce Committee for inclusion in S.327.
  • Economic Development: The House Commerce and Economic Development Committee reviewed omnibus economic development bill S.327. The committee is considering an amendment that would increase accessibility to funding available through the Rural Industrial Development Program, to help rural business relocation and expansion.
  • Vocational Rehabilitation: The House Commerce and Economic Development Committee continued review of S.173, a bill proposing modifications to Vermont’s vocations rehabilitation program Maintaining effective prescreening and improving the efficiency of rehabilitation plans must remain key priorities as discussions continue.
  • Housing: The House General and Housing Committee revised S.328, taking language from House and Senate housing bills and beginning the process of merging the two bills. While the bill advances key housing initiatives, provisions related to multiunit development have been separated for further consideration in the House Environment Committee and still face additional challenges.
  • Nickel For Your Thoughts: The House Commerce and Economic Development Committee continued testimony on H.837, a bill allowing businesses to voluntarily round cash transactions to the nearest five cents in response to reduced penny circulation. Final details around consumer notice are still being refined by the Committee.
  • Franchise Agreements: The Senate advanced H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. The bill now moves to the Governor’s desk.
  • Career Technical Education (CTE): The House Commerce and Economic Development Committee considered a new draft of CTE bill S.313 that would require acceptance of CTE credits toward graduation and begin updating the state’s CTE system. While not a complete solution to the challenges facing CTE centers, the proposal represents a strong improvement toward aligning workforce training with industry needs.
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued to review H.512. Ongoing discussions focused on refining the resale cap structure, addressing potential loopholes, and ensuring enforceability.
  • Association Health Plans: The Senate Finance Committee continued testimony on H.585, which could allow Association Health Plans beginning in 2028 and expand coverage options for businesses facing high costs. Testimony has shown strong support for AHPs, while broader discussions continue to shape the debate.
  • Primary Care: The House Health Care Committee reviewed S.197 which aims to increase use of primary care to reduce strain on hospital systems.
  • Sister State: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.674, a bill establishing a formal process for creating additional Vermont Sister State relationships to strengthen international engagement. Discussion emphasized the importance of a centralized vetting process and prioritizing mutually beneficial partnerships.
  • Wastewater: The House Environment Committee reviewed S.212, which streamlines wastewater permitting and improves coordination between municipal and state systems to reduce timelines and support development efficiency.
  • Bottle Bill: The Senate Natural Resources Committee continued testimony on H.915, a bill that establishing an extended producer responsibility program that would significantly increase obligations for beverage container manufacturers, distributors, and retailers.

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Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

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