Amy Spear

Expediting the development of housing stock continues to drive discussion as both the House and Senate wade through the bills amending Act 250, housing regulation, and the designation programs. The Senate Natural Resources Committee took testimony from planners and public and private housing developers, including Vermont Chamber members. The practical feedback provided from these experts on State and local level regulations brought attention to the added time and expense and the duplicative and unclear permitting processes which can add to projects in smart growth areas. With this feedback it is unlikely that either S.234 or S.200 will advance in their current forms as both create additional  responsibilities for poorly resourced municipalities and uncertainty for developers.

The housing crisis was discussed in a powerful conversation during the session on supporting BIPOC businesses and Vermont professionals of color at the Vermont Chamber’s Annual Economic Conference held earlier this week. Participants shared insights and stories about their experiences with housing in Vermont.

The Senate Economic Development Committee is crafting an Omnibus Economic Development bill to fund and create programs with ARPA dollars to spur economic recovery. The Agency of Commerce has asked for a $6 million appropriation to fund the popular new and remote worker incentive program with only $1 million of that being base funding. Additionally, they have asked for $8.4 million of one-time funding to create a targeted effort at recruiting new Vermonters for specific operations. Some of these funds would also be granted to regional organizations like chambers and regional development organizations to formalize the referral network and help people find jobs, housing, and community.

With all eyes on the workforce shortage, several Committees and caucuses are looking at the needs of underutilized workers.

• The House Education Committee heard from the Student Pathways Division about the Career and Technical Education (CTE) system which readies workers for in-demand jobs in local communities. The Vermont Chamber supports existing efforts to weave in CTE education in the younger grades, through more robust career advising and CTE recruitment.
• The Division of Vocational Rehabilitation brought the specific needs of the populations they work with in seeking stable employment to the House Commerce and Economic Development Committee. For workers with disabilities, transportation is one of the main challenges, particularly in rural areas, but some employers have worked with their employees and local partners to find creative solutions. It’s clear this conversation is just beginning and needs to be continued in the transportation committees.
• The Department of Corrections also spoke to the House Commerce and Economic Development Committee about their successes in training incarcerated individuals for jobs in the community. For justice-involved Vermonters seeking stable employment for the first time, job skills training programs could be more effective when coupled with social and emotional skills training, as employers are ready and willing to hire and collaborate with this population to make the transition into the workforce a long-term success.

The Senate Economic Development, Housing, and Military Affairs Committee returned to the issue of increasing Unemployment Insurance (UI) benefits with S.221, a proposal to create a temporary supplemental benefit of $25 per week for claimants, paid for with federal ARPA funds. The temporary benefit would remain in place until 2024, at which time the Committee hoped the UI mainframe computer system could be modernized, and a permanent $25 supplemental weekly benefit could take effect. However, the Vermont Department of Labor testified that this timeline is unrealistic, and IT modernization is likely to take up to five years once funding is provided for the project and a contract selection process is completed. The Committee is hesitant to pass a bill implementing a supplemental benefit that may not be continued as promised but is also under pressure from the U.S. Department of Labor to either repeal the legislation passed last year authorizing the supplemental benefit or find a fix. The Vermont Chamber believes that tax relief for Vermonters will be more effective in accomplishing the Committee’s goals than increasing unemployment benefits for this comparatively small pool of people.

With nearly $26 million in Economic Recovery Bridge Grants sitting idle, Economic Development Commissioner Joan Goldstein suggested to House and Senate committees this funding be moved into the Capital Investment Program (CIP). The committees are interested in distributing this money quickly and businesses in their communities have expressed there is still great need across many sectors. The Vermont Chamber urged the committees to keep the money in the Bridge Grant program and fix the formula and application process to allow businesses to easily access this funding. While the Vermont Chamber is supportive of the CIP, it focuses on an entirely different set of businesses that have largely recovered and are looking to the future. Allocating money separately for that program is preferential to taking money away from the Business Grant program. For many businesses in the lodging, restaurant, and wedding industries, the pandemic is not over, and they still have unmet need.

The Senate Judiciary Committee reviewed S.113, which proposes to establish a cause of action of the remedy of medical monitoring for a person who is exposed to a proven toxic substance. This legislation stems from a bill vetoed by Governor Scott in 2019. This new iteration has greatly improved on the last version by incorporating the suggestions that the Vermont Chamber made during prior testimony, making the bill substantially more reasonable for businesses. The Vermont Chamber has some remaining concerns regarding the criteria for the legal test, the insurance markets, and whether medical monitoring insurance can be written for Vermont companies and will work to highlight and address these concerns for the insurance markets and manufacturers. For questions, concerns or to learn more, please contact Chris Carrigan.

The House Commerce Committee heard testimony on H.29, which would require small nonprofit employers with fewer than four employees that do not participate in the Unemployment Insurance (UI) system to notify prospective employees that they will be ineligible for UI benefits. This bill attempts to correct a problem some employees faced during the pandemic when they filed for UI benefits, not realizing that their employer’s small size made them ineligible for benefits. An amendment to the bill would also require employers that elect to reimburse the UI Trust Fund rather than make regular payments to provide the Vermont Department of Labor with a security deposit.

The House General, Housing, and Military Affairs Committee continued work on two bills regarding discrimination in housing, education, public accommodation, and employment. H.320 would prohibit discrimination settlement agreements between employer and employee from including prohibitions on future employment, which advocates say unfairly penalize victims of workplace harassment. However, some employment attorneys have raised concerns that this could take away what little leverage employees have in settlement negotiations.

H.329 would amend the prohibitions against discrimination by removing the “severe and pervasive” standard for harassment based on any protected class, establish a uniform 6-year statute of limitations, allow an employee to file a claim without having previously pursued an internal grievance process, and remove the requirement that an employee demonstrate that a comparable employee was treated differently to prove that discrimination occurred.

The Committee will review these proposals and decide if additional laws are needed to protect employees from discrimination in the workplace while considering the concerns of employers and the protections afforded in current law.  To share your thoughts on these bills, email the Vermont Chamber Government Affairs Team.

The Senate Economic Development, Housing & General Affairs Committee voted favorably on S.210, which creates a rental registry but exempts properties rented for fewer than 90-days each year. While a majority of the Committee acknowledges the critical importance of the registry for all short term rentals (STRs), they are crafting a bill that will be more likely to gain the Governor’s approval according to the path set forth in his veto message. With this exemption, Vermont will not collect important information to fully understand the impact STRs have on the tourism market and on housing scarcity. S.210 will likely pass the Senate and then move to the House for their consideration where robust conversations are anticipated. The Vermont Chamber will continue to advocate for equity within Vermont’s lodging industry.