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State to Main - Week 29

9/25/2020

 
Click here to read a PDF of this blog post.

​Vermont Chamber Cohosts Candidate Forums

9/23/2020

 
​With Election Day just around the corner, the Vermont Chamber teamed up with Let's Grow Kids and the Vermont Housing Finance Agency to cohost nonpartisan governor and lieutenant governor candidate forums. 

See where the candidates stand on issues that affect Vermonters by watching the recorded forums.
  • Watch full recording of Lieutenant Governor Forum from September 17 
  • Watch full recording of Governor Forum from September 18

Candidates for governor and lieutenant governor were asked how they would approach current issues, answering questions on:
  • The growing need for consistent broadband connectivity 
  • Inadequate access to high-quality, affordable child care
  • Access to affordable housing in Vermont
  • Investment in rural economic development

Your vote in this election will help shape Vermont’s future, including our recovery from the pandemic and our community response to fellow Vermonters’ needs. Thank you for your engagement with these important elections.
​
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State to Main - Week 28

9/18/2020

 

Vermont Chamber Submits Testimony on Economic Relief Proposal

Senate Not Supportive of Cloud Tax Proposal

U.S. Removes 10 Percent Tariff on Canadian Aluminum

Governor Scott Relaxes Hospitality Occupancy Restrictions

House Amends Unemployment Insurance Rate Criteria

Resource Roundup

In Case You Missed It

 

 

 

 

 

Vermont Chamber Submits Testimony on Economic Relief Proposal

Vermont Chamber Vice President of Tourism Amy Spear offered testimony on the economic relief proposal drafted in the House and recently amended and advanced in the Senate. Spear’s testimony called for expanding eligibility to provide resources for businesses who were left behind by the relief programs created in June. The testimony also called for ensuring a significant portion of the relief funds are dedicated to a rescue package for the hospitality industry, including lodging and restaurant entities who were most severely impacted by mandatory operating restrictions related to COVID-19. Carol Lighthall, Executive Director of the Okemo Valley Chamber of Commerce, also offered testimony on behalf of the Vermont Association of Chamber of Commerce Executives that called for relief funds to assist local and regional chambers of commerce who have played a key role in assisting businesses throughout the current economic crisis. Lighthall’s request is additionally supported by the Vermont Association of Regional Planning Commissions and the Vermont Association of Regional Development Corporations.

The Senate’s economic relief proposal includes $76.7 million in economic recovery grants, $4 million to the Department of Tourism and Marketing for the Restart Vermont Marketing Program, and $2.3 million to the Vermont State Colleges in coordination with the Department of Labor to support workforce training for impacted employment groups. The most significant change from the House’s economic relief proposal is a provision that would remove $17 million from the House’s original $100 million for the purpose of providing unemployment insurance recipients with stimulus payments of up to $100 a week, for four weeks. A further breakdown of the Senate’s proposal is included below.

The Vermont Chamber continues to advocate for the advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session draws to a close, the Vermont Chamber will continue pushing for meaningful relief to address the unprecedented hardship facing Vermont’s business community.

 

Senate Not Supportive of Cloud Tax Proposal

On Tuesday the House Committee on Ways and Means advanced a proposal that would impose a tax on vender-hosted pre-written software. Tech industry representatives have repeatedly expressed opposition to establishing a tax on software as a service (SaaS), commonly known as a cloud tax. Such a tax would disincentivize the startup and growth of SaaS businesses in Vermont and add considerable operating costs to other businesses. The Vermont Chamber recently joined dozens of advocacy organizations and business leaders in expressing our continued opposition to the implementation of this tax.

On Thursday the Senate Committee on Finance heard additional testimony from industry representatives that elaborated on the negative impacts the tax will have on Vermont’s tech industry, if implemented. Ultimately, the Committee was not supportive of the provision and the full Senate did not advance the tax proposal. Chair Ann Cummings expressed specific concern about the impact a cloud tax could have on the cost of reservation services for the hospitality sector, which is already suffering because of COVID-19 operating restrictions. The Vermont Chamber will continue working to ensure that Vermont’s tech sector is not placed at a competitive disadvantage or exposed to other economic harm as a result of burdensome regulations or additional tax mandates.

 

U.S. Removes 10 Percent Tariff on Canadian Aluminum

The Vermont Chamber joined New England states and Canada in expressing opposition to the Trump Administration’s decision to reimpose a 10 percent tariff on Canadian aluminum. The Vermont Chamber made clear in remarks offered in a joint statement shared with the Scott Administration that the majority of Canadian companies source over half of their aerospace parts from the U.S. and that tariffs create uncertainty, raise costs, lower sales revenues, and place our manufacturers at a competitive disadvantage. Responding to industry calls for stability, Vermont Governor Phil Scott joined New Hampshire Governor Christopher Sununu and Maine Governor Janet Mills last week in calling for an end to the tariff.

Facing growing criticism from impacted states and industry, this week the United States removed the tariff. The action was praised by Chris Carrigan, Vermont Chamber Vice President of Business Development, in a recent interview with the Rutland Herald. Please reach out to Chris Carrigan with any questions.

 

Governor Scott Relaxes Hospitality Occupancy Restrictions

Governor Scott today announced needed changes to business operation guidelines for the hospitality sector. The Vermont Chamber’s four-person lobbying team has been working on behalf of the hospitality industry to secure these changes. Certain lodging occupancy restrictions have been lifted. Read more. Restaurants, catering, food service, and bars can allow 50 percent of fire safety occupancy or one person per 100 square feet, with a maximum of 75 people indoors and 150 people outdoors or their maximum licensed seating capacity, whichever is less. Read more. Bar seating is now permitted with seating that allows for physical distancing of six feet between dining parties and a physical barrier between patrons and bartenders. Read more. Beginning next week the Cross State Travel Information will be updated each Tuesday instead of Friday. The Agency of Commerce and Community Development’s restart guidance page has also been updated with detailed information. As the impacts and challenges of COVID-19 continue, the Vermont Chamber will continue to advocate for operational and financial relief for the hospitality industry.

 

House Amends Unemployment Insurance Rate Criteria

The House Committee on Commerce and Economic Development established criteria that would enable the unemployment insurance (UI) tax rate schedule, which employers pay into, to adjust necessarily to ensure the UI trust fund remains solvent in the event of a prolonged or abrupt draw down as a result of high future rates of unemployment. The changes were supported by the Department of Labor and business advocates present. While a major increase to the UI tax rate schedule, if triggered, would add costs for employers, if the UI trust fund is drawn down to zero and the state is forced to borrow from the federal government, the economic impact on employers could be more significant. The Vermont Chamber expressed support for the change during brief testimony.

 

Resource Roundup

  • ECHO Launches Two Programs Supporting Vermont Families
    • ECHO Virtual STEM Academy provides educational support to meet family and community needs with high-quality, at-home learning. Classes are standards-aligned, one-day-per-week, 6-week learning sequences for K-5th grade students, enrolled in hybrid school programs, homeschooling, or at-home learning pods.
    • ECHO Care & Enrichment is a one day a week (Tuesdays or Thursdays) care program for children in Kindergarten through 3rd grade. It will offer enriching hands-on STEM activities, supported learning time for school assigned work, and access to the museum exhibits and live animals. This fall, there will be 3 four-week sessions.
    • Sign up now! Questions? Email Keely O'Brien at kobrien@echovermont.org.

  • Geographic- and Challenge-Specific Resources
    The Vermont Chamber of Commerce has partnered with On the Fly, a grassroots collection of business experts in the hospitality field. Restaurants and lodging establishments reconsidering how to provide services during the pandemic can consult with the Vermont Chamber of Commerce and On the Fly on designing and implementing change. You can also find additional geographic- and challenge-specific resources on the Agency of Commerce and Community Development page linked here.

  • Vermont Chamber Cohosts Candidate Forums
    With Election Day in Vermont just around the corner, the Vermont Chamber of Commerce teamed up with Let's Grow Kids and the Vermont Housing Finance Agency to cohost nonpartisan governor and lieutenant governor candidate forums next week.
    • Watch the full recorded Lt. Governor Forum from Thursday at this link.
    • Register for the Governor Forum this evening, Friday, Sept. 18, at this link.
    • Candidates are answering questions on:
      • The growing need for consistent broadband connectivity
      • Inadequate access to high-quality, affordable child care
      • Access to affordable housing in Vermont
      • Investment in rural economic development

 

In Case You Missed It

  • Vermont's Unemployment Rate Decreases to 4.8 Percent in August

  • Tariff on Canadian Aluminum off for Now

  • Child Care System Adds Hubs Quickly, but Many Families Still Face Big Problem

 

Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information.

State to Main - Week 27

9/11/2020

 

Senate Reviews House Economic Relief Proposal

Vermont Chamber Testifies on Unemployment Insurance Fund

Vermont Chamber Urges Changes to Act 250 Proposal

Senate Approves Additional Hazard Pay Bill

New England Governors Oppose Tariff on Canadian Aluminum

Committee Continues Discussion of Possible “Cloud Tax”

Resource Roundup

In Case You Missed It

 

 

 

 

 

 

Senate Reviews House Economic Relief Proposal

The Senate Committee on Economic Development, Housing and General Affairs heard testimony from the Scott Administration and Representative Charlie Kimbell, Ranking Member of the House Committee on Commerce and Economic Development. The Committee specifically reviewed the House’s economic relief proposal. If advanced as passed by the House, the current relief proposal would provide $100 million in additional economic relief for businesses impacted by COVID-19. The Committee has not yet indicated what major changes they will make to the House proposal, if any, but the members of the Committee indicated they would like to reintroduce some funding for a consumer stimulus program.

The Vermont Chamber has pushed for advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session unfolds, the Vermont Chamber will continue advocating for meaningful relief to address the unprecedented hardship facing Vermont’s business community.

 

Vermont Chamber Testifies on Unemployment Insurance Fund

Charles Martin, Vermont Chamber Government Affairs Director, testified in the House Committee on Commerce and Economic Development on the future of Vermont’s Unemployment Insurance (UI) trust fund. Since the onset of the pandemic, the state’s UI fund has been drawn down from a previous high of $500 million to a current level of $300 million. Pandemic related layoffs are expected to regularly occur for the foreseeable future, which will continue to impact the fund. Legislators on the Committee heard from state economists and others about replenishing the fund and impacts replenishment and the associated tax increases could have on employers. Martin’s testimony included cautioning a significant UI schedule jump, which would result in higher unemployment insurance taxes for employers, most of whom continue to suffer as a result of the current economic turmoil.

The Committee did not specify what immediate actions they would take to replenish the fund and instead indicated additional questions related to acceptable solvency in the UI fund need to be answered before major decisions about the fund’s future can be made. While the Vermont Chamber recognizes the essential nature of maintaining a strong UI fund, employers are ill equipped to withstand significant tax increases at this time and our engagement with the Legislature will continue to reflect this reality.

 

Vermont Chamber Urges Changes to Act 250 Proposal

The Vermont Chamber joined the Lake Champlain Chamber and the Regional Development Corporations of Vermont in recommending changes to a housing bill that, if implemented, would serve to reintroduce Act 250 provisions related to areas of enhanced designation that were removed from the Act 250 proposal recently advanced by the Senate. Last week the Senate made major changes to Act 250 reform legislation that struck sections related to development in areas of enhanced designation. The Vermont Chamber and others in the economic development community were supportive of previously included provisions that would have removed designated downtowns from Act 250 jurisdiction in some instances. If implemented, these provisions would encourage sustainable economic growth and contribute to creating more affordable housing. The Vermont Chamber will continue pushing for the reintroduction of designated downtown exemptions as the current legislative session unfolds.

 

Senate Approves Additional Hazard Pay Bill

The Senate advanced changes to Vermont’s hazard pay program. S.352 was passed by the Senate and includes an additional $2.5 million in funding for the program as well as an amendment that would direct $12 million for childcare workforce stabilization. S.353, also passed by the Senate, would enable grocery and retail workers to be eligible for hazard back pay while adding $19.5 million to the program. The changes now require approval in the House.

 

New England Governors Oppose Tariff on Canadian Aluminum

The Vermont Chamber recently joined New England states and Canada in expressing opposition to the Trump Administration’s decision to reimpose a 10 percent tariff on Canadian aluminum. Chris Carrigan, Vermont Chamber Vice President of Business Development, made clear in remarks offered in a joint statement shared with the Scott Administration that the majority of Canadian companies source over half of their aerospace parts from the U.S. Carrigan also pointed out that the tariff on aluminum will add injury to an already impacted aerospace manufacturing industry suffering demand shock from a drastic decline in passenger traffic for commercial aviation due to the pandemic. Responding to industry calls for stability, Vermont Governor Phil Scott joined New Hampshire Governor Christopher Sununu and Maine Governor Janet Mills this week in calling for an end to the tariff. If you have any questions or would like to express how this tariff is impacting your business, please contact Chris Carrigan.

 

Committee Continues Discussion of Possible “Cloud Tax”

The House Ways and Means Committee continued discussion of possibly implementing a tax on prewritten software. Early in 2020 tech industry representatives descended on the State House to express opposition to establishing a tax on software as a service (SaaS), commonly known as a cloud tax. Such a tax could disincentivize the startup and growth of SaaS businesses in Vermont and add considerable operating costs to other businesses. Prewritten software purchased on storage media or downloaded to a computer is currently taxable, while prewritten software accessed remotely via the internet is not. The Committee is again considering implementing a cloud tax as a possible means to raise an estimated $6.5 million in revenue to address shortfalls in the education fund. Considering the overall costs to the business community and the unprecedented economic uncertainty facing Vermont, the Vermont Chamber opposes the implementation of a SaaS tax, especially given the current limited ability for stakeholders to engage the Legislature. If you have questions or concerns about a SaaS tax, please contact Charles Martin.

 

Resource Roundup

  • Vermont Chamber Cohosting Candidate Forums Next Week
    With Election Day in Vermont just around the corner, the Vermont Chamber has teamed up with Let's Grow Kids and the Vermont Housing Finance Agency to cohost nonpartisan governor and lieutenant governor candidate forums next week.

    • Candidates will be asked how they would approach current issues, answering questions on:
      • Inadequate access to high-quality, affordable child care
      • Access to affordable housing in Vermont
      • The growing need for consistent broadband connectivity
      • Investment in rural economic development

    • Register for next Thursday's Lt. Governor Forum at this link.

    • Register for next Friday's Governor Forum at this link.

  • National Restaurant Association Wants to Hear Your Restaurant Story
    The National Restaurant Association is asking restaurant owners and supporters to record their experiences managing a restaurant during the pandemic. The videos will be used to further advocacy efforts on Capitol Hill. Tell Congress that restaurants need additional relief now. Record your video here.

 

In Case You Missed It

  • House Poised to Pass Budget Bill With State College ‘Bridge Funding’

  • Veto Likely as House Sends Global Warming Solutions Act to Governor’s Desk

  • House Approves $7.15 Billion State Budget

  • Buy Local Vermont Program Fully Subscribed in Less Than 24 Hours

 

Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information.

State to Main - Week 26

9/9/2020

 

Additional Economic Relief Legislation Advances

Senate Implements Major Changes to Act 250 Proposal

Tax Options During Economic Downturn Reviewed

Legislation Would Authorize “To Go” Liquor Sales Through 2022

Vermont Chamber Joins New England States and Canada in Opposing Aluminum Tariff

Stormwater General Permit (GP) 3-9050 Issued

Resource Roundup

In Case You Missed It

 

 

 

 

 

Additional Economic Relief Legislation Advances

The House Committee on Commerce and Economic Development advanced draft legislation that would make available an additional $100 million in economic relief grants for businesses impacted by COVID-19. If passed into law the legislation would provide $88 million to the Agency of Commerce and Community Development (ACCD) for additional grants to be applied across several industries and $12 million through ACCD to address industry specific issues. Within the $12 million, $5 million would go to Vermont ski area businesses to make necessary improvements to facilities to mitigate public health risks, $4 million to the Department of Tourism and Marketing for the Restart Vermont Marketing Program, and $3 million to be divided equally between the Community College of Vermont and the Vermont Technical Center to serve around 1,000 Vermonters impacted by the pandemic.

The legislation also expands eligibility for accessing ACCD economic relief grant funds by removing a specific qualifying loss threshold. Additionally, the legislation would raise the overall cap on grant funds a business can receive to $300,000, or higher, if approved by the Joint Fiscal Committee. The Vermont Chamber has pushed for advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session unfolds, the Vermont Chamber will continue advocating for meaningful relief to address the unprecedented hardship facing Vermont’s business community.

 

Senate Implements Major Changes to Act 250 Proposal

The Senate Committee on Natural Resources stripped their Act 250 proposal of virtually any substantive changes other than provisions related to trail construction and forest fragmentation. The Committee’s proposal advances no changes to criteria governing development in designated downtowns. The Vermont Chamber and others in the economic development community were supportive of previously included provisions that would have removed designated downtowns from Act 250 jurisdiction in some instances. House committees are concurrently working on other legislation that could also end up serving as a vehicle for Act 250 reform. The Vermont Chamber will continue advocating on this issue, including by pushing for the reintroduction of designated downtown exemptions.

 

Tax Options During Economic Downturn Reviewed

The House Ways and Means Committee discussed taxation during economic downturns. The Committee considered new tax options, including taxation of software as a service. Witness Kim Rueben, Director of the State and Local Finance Initiative, Urban Institute, recommended the Committee consider imposing new taxes on services that replace products that were previously physically purchased but are now sourced through internet services. The Committee’s Chair indicated they would continue to consider such options this session and during the 2021 Legislative Session. Rueben also recommended the Committee consider increasing top marginal tax rates on income tax and expanding Vermont’s sales tax base. A representative from Moody’s Analytics also presented options for budgeting in the age of COVID-19. View the full conversation here.

 

Legislation Would Authorize “To Go” Liquor Sales Through 2022

The Department of Liquor and Lottery proposed legislation that would permit the Board of Liquor and Lottery to authorize alcoholic drinks for “to go” sales through December of 2022. Gary Kessler, Deputy Commissioner of the Department, offered the legislation during testimony delivered to the Senate Committee on Economic Development, Housing and General Affairs. The Vermont Chamber has advocated for an extension of alcohol to go sales to help restaurants generate reliable revenue while COVID-19 related operating restrictions remain in place. If you have questions about alcohol policy, please contact Vermont Chamber Vice President of Tourism Amy Spear.

 

Vermont Chamber Joins New England States and Canada in Opposing Aluminum Tariff

The Vermont Chamber joined New England states and Canada in expressing opposition to the Trump Administration’s recent decision to reimpose a 10 percent tariff on Canadian aluminum. Chris Carrigan, Vermont Chamber Vice President of Business Development, made clear in remarks offered in a joint statement that the majority of Canadian companies source over half of their aerospace parts from the U.S. Carrigan also pointed out that the tariff on aluminum will add injury to an already impacted aerospace manufacturing industry suffering demand shock from a drastic decline in passenger traffic for commercial aviation due to the pandemic. If you have any questions or would like to express how this tariff will impact your business, please contact Chris Carrigan.

 

Stormwater General Permit (GP) 3-9050 Issued

A new general permit will go into effect on December 1, 2020. The permit requires that landowners with more than three acres of impervious surfaces, including roofs, driveways, and parking lots, undertake projects to treat water runoff. In 2019 the Vermont Chamber provided public comment on the draft permit, expressing concern over the originally proposed timetable and the financial burden compliance will place on small businesses. The Department of Environmental Conservation’s (DEC) formal response to those concerns are available on the Department’s response summary page. The Department plans to offer technical and financial assistance to landowners to support engineering design and installation of stormwater projects by utilizing resources from the Clean Water Fund and the State Revolving Fund to offer cost-share to landowners.

Businesses that provided public comment or signed up under the Environmental Notices Bulletin (ENB) should receive a notice of issuance of the GP through the ENB. Applications for new development and permit renewal should continue to use GP 3-9015 and GP 3-9010 until December 1, 2020. DEC will update their website soon to include a “summary of changes” in the final GP 3-9050 relative to the draft GP and will develop a table of the schedule for submitting the required permit applications for “three-acre sites.” DEC will also provide outreach letters to “three-acre sites” over the next few weeks. Technical questions related to applicability of GP 3-9050 to particular projects can be directed to the Stormwater Program staff. Please contact Vermont Chamber Government Affairs Director Charles Martin with other questions or concerns related to the permit.

 

Resource Roundup

  • Enroll Your Business in Gift Card Program
    We are encouraging Vermont businesses to enroll now in the new Buy Local Vermont Gift Card Program intended to increase sales for local businesses. #BuyLocalVermont is a program created by the State of Vermont that uses CARES Act funding to aid Vermont businesses and residents struggling in the wake of the COVID-19 pandemic.

  • 2020 National Procurement Technical Assistance Centers Day Webinar
    Businesses are invited to join government marketplace experts from around the country for a fun, interactive, and enlightening event. Hosted by the Association of Procurement Technical Assistance Centers, participants will have a chance to test their knowledge of the federal government marketplace while hearing top tips from PTAC counselors across the country. Businesses with all levels of government contracting experience are welcome to participate in this free event.

  • Economic Recovery Grant Program
    If you have not applied already, Economic Recovery Grant funds are available to Vermont businesses who can demonstrate a revenue decline of at least 50% in any one-month period from March 1, 2020 to August 31, 2020, when compared with the same month in 2019. Businesses with at least one W-2 employee, including those who are an owner, are encouraged to apply.

 

In Case You Missed It

  • Mail-In Ballots to Be Sent Out in Last 2 Weeks of September

  • Business Aid Bill Removes Minimum Loss Threshold

  • Open Spaces of Vermont, Oregon, Idaho Attract Relocators

 

Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information.

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Copyright 2020 Vermont Chamber of Commerce
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