Legislature Adjourns Until August
Second Round of Relief Money Advanced
$28 Million Hazard Pay Program Passed
Unemployment Insurance Tax Relief
Manufacturers at Risk for Additional Regulations
Increased Costs With Workers’ Compensation Changes
Act 250 Proposal on Hold
Resource Roundup
In Case You Missed It
Legislature Adjourns Until August

The Legislature has adjourned until August 25, 2020 when they will address the remaining three quarters of the state’s budget. Also in play is action on the miscellaneous tax bill, Act 250 reform, additional COVID-19 related relief programs, and a plethora of additional proposals that were not completed prior to June adjournment. With the massive decline of the state’s revenue sources due to the pandemic, the Governor and legislative leaders have already discussed potential deficit-spending in the Education Fund to avoid property tax increases. While Vermont is one of few states that doesn’t require a balanced budget, it has rarely used that capability.
Second Round of Relief Money Advanced
S.350, the Legislature’s initial relief bill, provided $70 million to businesses impacted by COVID-19 related restrictions and closures. Using the framework established in that bill, the Legislature advanced an additional round of funding that would direct another $82 million in grants to businesses that have suffered a 50 percent or greater reduction in revenue in a monthly or quarterly period from March 1, 2020 to September 1, 2020 as compared to the same period in 2019. The bill further provides $24 million in funding for various business sectors, bringing the total relief in the second round of funding to $106 million as displayed in the table below.

As drafted, the $82 million provided directly to ACCD/DOT for additional emergency economic recovery grants would not be accessible to sole proprietors. Sole proprietors will be able to access the remaining funds and programs provided by the bill.
Of the initial $1.25 billion allocated to the State of Vermont from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, $140 million remains. The Vermont Chamber has advocated for the expeditious advancement of additional, widely accessible relief resources for businesses. In the last two weeks, the Legislature has done just that, however, more relief is needed. In the coming weeks, the Vermont Chamber will continue to advocate for additional funding for businesses to aid in their recovery.
$28 Million Hazard Pay Program Passed
A $28 million hazard pay grant program was passed providing grants to certain employers for hazard pay to frontline workers whose job placed them at an elevated risk of exposure to COVID-19 during the first two months of the public health emergency. Eligible employers include those who employ one or more individuals in Vermont in an assisted living residence, a nursing home, a residential care home, a therapeutic community residence, a health care facility, a physician’s office, a dentist’s office or a dental facility, a homeless shelter, a home health agency, a federally qualified health center, a rural health clinic or clinic for the uninsured, a program licensed by the Department for Children and Families as a residential treatment program, an ambulance service or first responder service, a morgue, or a provider of necessities and services to vulnerable or disadvantaged populations. The Agency of Administration is responsible for administering the program.
Unemployment Insurance Tax Relief
The Scott Administration announced changes that will reduce unemployment insurance (UI) tax rates, a welcome relief for businesses under financial strain due to the pandemic. The Department of Labor will move to UI Tax Rate Schedule I, reducing individual employers’ UI tax rates on July 1, 2020. Employers’ tax rates vary according to their experience rating, which is based on UI claims charged to their account, total payroll, and their ranking among all employers who contribute to UI. Schedule I decreases the upper and lower thresholds for these tax rates, as well as reducing the taxable wage base amount beginning January 1, 2021. In addition to this tax rate change, the maximum weekly benefit amount paid to unemployed Vermonters will increase from $513 to $531. This increase is effective beginning the first full week of July.
Manufacturers at Risk for Additional Regulations
The House Committee on Human Services reviewed bill S.295 which seeks to further restrict the use, manufacture, sale, and distribution of perfluoroalkyl and polyfluoroalkyl (PFAS) chemicals, phthalates and bisphenols in firefighting foam, personal protective equipment (PPE), food packaging, and rugs and carpets.
While there is a federal exemption for the use of firefighting foams containing PFAS chemicals for aircraft rescue, S.295 is broadly written and would put manufacturers at risk for further supply chain disruption, greater liability, and added regulations and costs. This would leave many Vermont companies at a competitive disadvantage. The Vermont Chamber continues to believe chemical risks can vary greatly and related regulations should be developed based on credible, scientific evidence and quantifiable health risk a specific chemical may pose.
The Vermont Chamber’s testimony supports a scientific approach and a federal solution that harmonizes regulatory standards, especially considering the recent reforms of the Toxic Substances Control Act (TSCA). The Vermont Chamber recognizes that chemical regulations must account for health and environmental concerns while providing impacted businesses with achievable and sustainable regulatory frameworks. The Committee will again take up S.295 in August. If you have concerns, please contact Chris Carrigan.
Increased Costs With Workers’ Compensation Changes
The Legislature passed a bill that implements changes to workers’ compensation. As passed, the bill would broadly expand COVID-19 related workers’ compensation eligibility to occupations outside of the emergency services realm. During testimony, the Vermont Chamber pushed for changes that would limit the scope of the bill and provide a financial backstop paid for by the state with the intention of offsetting potential increases to workers’ compensation insurance rates for employers. The changes were largely not adopted, though the House Committee on Commerce and Economic Development did take steps to improve the bill.
The bill was slightly narrowed in scope to individuals who have proven, regular contact with COVID-19 positive members of the public, inmates, or patients and also included a requirement that a report be created to explore the framework for the possible establishment of a workers’ compensation fund to address potential rate increases that will result from the bill’s passage.
The Vermont Chamber will continue to oppose legislative proposals that impart additional financial burdens on employers. Doing so is especially important given the ongoing economic hardship businesses face as a result of COVID-19.
Act 250 Proposal on Hold
Act 250 changes attached to a housing bill failed to advance before adjournment but could be revisited in August. Members of the Senate Committee on Natural Resources and Energy who originally added the amendment proposing the change to the housing bill have reintroduced the changes in the form of an amended version of the Act 250 reform bill (page 6462) passed by the House in March.
The Vermont Chamber was encouraged by the advancement of uncontroversial provisions in the Senate’s earliest Act 250 proposal that would have largely removed municipal areas of enhanced designation from Act 250 jurisdiction. If implemented, these changes would encourage sustainable economic development and aid in economic recovery from COVID-19 impacts. Unfortunately, in recent weeks, what was previously a widely agreeable bill expanded to include several concerning provisions that could significantly increase the scope of Act 250 jurisdiction. The most recent changes advanced by the Senate Committee on Natural Resources and Energy include the addition of sections related to forest fragmentation and rules that would bring newly constructed roads and driveways totaling more than 2,000 feet into Act 250 jurisdiction.
The Vermont Chamber will continue working to ensure communities, both urban and rural, are not negatively impacted by any final changes to Act 250.
Resource Roundup
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Websites for Tracking CARES Act Dollars in Vermont
The State of Vermont now has two web resources businesses and the public can use to track where CARES Act dollars are being spent. Those websites are Vermont State Auditor’s Website and the Vermont Department of Finance Website (scroll to COVID-19 Federal Funding Tracker). -
U.S. Department of Labor Launches Online Leave Tool
The U.S. Department of Labor’s Wage and Hour division launched a new online tool that guides workers and employers through a series of questions to help them determine if they are eligible for paid sick leave or expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA). As Vermont and the nation continues to reopen, this tool will contribute to helping understand qualifications and responsibilities under FFCRA. Here is the full link. Please contact Steven McKinney with questions.
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