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

• 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).
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• 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.

In Case You Missed It

• Vermont Senate to Change Remote Meeting Policy After More Glitches
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• Final Reading: House Debates Lawmaker and State Employee Raises
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• Takeout Cocktails Have Saved Many Businesses. Some States Want to Make Them Permanent Offerings.
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• Property Tax Rates Set for Average 3-Cent Rise as Lawmakers Pass Ed Funding Bill

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Second Round of Relief Money Advances

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 S.350, the House advanced an additional round of funding that would direct another $70 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 Agency of Commerce and Community Development (ACCD) in coordination with the Department of Taxes (DOT) would continue to administer and distribute this portion of the funds. The section of the bill titled “Economic Relief for Businesses and Individuals” includes an additional $31.5 million in funding for various businesses, bringing the total relief for businesses advanced by the second round of funding to $101.5 million. The table below breaks down those amounts by program.

As drafted, the $70 million provided directly to ACCD for additional emergency economic recovery grants would not accessible to sole proprietors. According to legislative council, sole proprietors will be able to access the remaining funds and programs provided by the bill.

The Vermont Chamber has advocated for the expeditious advancement of additional, widely accessible relief funds for businesses, and we applaud the Legislature, and particularly the House Committee on Commerce and Economic Development, for acting quickly to advance this latest relief bill. The business community has made clear that more relief is needed, and over the coming weeks the Vermont Chamber will continue to advocate for additional funding for the business community.

Relief Bill Includes Hazard Pay

A $20 million hazard pay grant program was added to the most recent relief package. The program would provide grants to certain employers for the provision of 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 COVID-19 public health emergency. Eligible employers include employers who employ one or more individuals in Vermont in an assisted living residence, a nursing home as defined, 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.

Legislature Advances Broadband Package

The Legislature recently advanced a funding package that would help address the connectivity shortfall impacting 70,000 Vermont households that do not have access to federally defined broadband.  Federally defined broadband includes speeds of at least 25/3 Mbps, which is sufficient for most telehealth, work, and learn-from-home tasks. COVID-19 related restrictions and closures have demonstrated that broadband access is now both an essential economic development goal and an immediate emergency need.

As currently drafted this broadband proposal represents an unprecedented investment in delivering connectivity to unserved locations throughout Vermont. While the Vermont Chamber is supportive of dedicating an investment of this magnitude to ensuring Vermont’s many communities have sufficient internet access, we have concerns about provisions within the relief package that would limit the use of these funds to specific technologies. We continue to believe public investments in broadband should be technology-neutral and include public and private partnerships that maximize institutional knowledge and capitalize on existing infrastructure, while planning for future technology landscapes. A technology-neutral approach would also bring Vermont in line with proven strategies employed by surrounding New England states.

Act 250 Progress a Mixed Bag

In the last several weeks modernization efforts of Act 250 have resulted in mixed progress. The Vermont Chamber was encouraged by advancement of uncontroversial provisions in the Senate’s earlier Act 250 proposals that would largely remove municipal areas of enhanced designation from Act 250 jurisdiction. If implemented, these changes would encourage long-term economic development and aid in economic recovery from COVID-19 impacts. Unfortunately, in recent days, what was previously a widely agreeable bill has expanded to include several concerning provisions that could significantly increase the scope of Act 250 jurisdiction. The most recent changes 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.

First Quarter Budget Bill Advances

After passing in the House earlier this month, the Senate approved a budget bill that would fund state government for the first three months of the fiscal year (July through September). The Scott Administration previously proposed a 2 percent reduction in state spending for the first quarter to account for COVID-19 related revenue shortfalls. House and Senate Appropriators largely rejected that proposal, choosing instead to refrain from significant state spending cuts in hopes that federal CARES Act dollars will be permitted to be used for revenue replacement. Federal regulations currently do not allow CARES Act relief to be used for revenue replacement. Separately, as part of the Pay Act, state employees will receive an average 1.9 percent step increase and a $1,400 one-time payment to individuals employed as of July 1, 2020 and an average 1.9 percent step increase and 2.25 percent across-the-board increase for a total 4.15 percent increase in Fiscal Year 2022.

Workers’ Compensation Changes Under Review

As drafted, the most recent bill proposing changes to workers’ compensation law could broadly expand COVID-19 related workers’ compensation eligibility to jobs outside of the emergency services realm. The proposed changes have the potential to impart considerable cost impacts on employers. The Vermont Chamber is advocating for limiting the scope of the bill to frontline workers involved in emergency response and public safety. Testimony on the proposed changes will continue next week.

Resource Roundup

• Vermont Chamber Passport to Recovery
  The Vermont Chamber’s Passport to Recovery portal is dedicated to the Vermont community in place of our Workforce & Talent Summit and shares timely webinars to help businesses, employers, and employees across the state. Economic, sales & marketing, health, and workforce webinars will be provided through June and July.
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• Economic Recovery and Relief Package Webinar Series
  An archive of ACCD's sector-specific webinars.
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• CDC-Based COVID-19 Business Plans
  PieMatrix in Burlington is offering free CDC-based COVID-19 back-to-business and back-to-isolation plans for businesses to use when opening or closing operations.
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• Department of Labor RETAIN Program Provides Return to Work Resource
  Vermont Retaining Employment and Talent After Injury/Illness Network created a checklist resource to help guide employers and employees as they return to work. Please contact Deborah Kennedy with questions.

In Case You Missed It

• Capacity Limits Raised for Restaurants, Other Hospitality Businesses
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• A Crowded Field as Two Chittenden County Senators Seek Higher Office
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• Registration Opens for U.S. Chamber of Commerce Summit on Equality of Opportunity
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House Passes Initial Relief Package

After passing in the Senate last week, the House passed S.350, the Legislature’s initial relief bill developed from the economic recovery and relief package proposed by the Scott Administration in late May. As originally drafted, the relief package provided $250 million in financial relief to impacted businesses. The Vermont Chamber called for significant changes to the relief proposal in recent testimony.

As passed, S.350 provides $70 million in grants, distributed through the Department of Taxes, with the Agency of Commerce and Community Development (ACCD) assisting the Department of Taxes in vetting distribution of the funds. $20 million of the funds will be distributed through regional economic development organizations, with oversight by ACCD. The entirety of the relief package is restricted to businesses who are able to demonstrate 75 percent or greater reduction in total sales in any one-month period from March 1, 2020 to September 1, 2020 as compared to the same one-month period from March 1, 2019 to September 1, 2019. Provisions were also added to the bill to hold harmless businesses in situations where funds are distributed outside of technical compliance with federal guidelines. While unlikely, in situations where funds are inappropriately distributed, the added provision makes state agencies, and not individual businesses, liable for repayment to the Treasury.

During his report of the bill to the House Committee on Appropriations, the Chair of the House Committee on Commerce and Economic Development acknowledged this first round of funding is far from enough to satisfy current need in the business community. The Chair indicated his committee is now working to advance an additional relief package, which is set to include an additional $80 million. The Vermont Chamber is working to ensure these and additional funds are advanced expeditiously and are widely accessible to Vermont businesses.

Legislative Group Calls for Restricting Relief Funds Eligibility

A group of 29 legislators called on the House Committee on Commerce and Community Development to restrict access to the Vermont Economic Injury Disaster Loan and Grant program or similarly enacted programs to businesses who offer their employees between 140 and 160 percent of the current minimum wage and comply with five other qualifying criteria. If enacted the proposal would severely limit eligibility for potential relief funds to a portion of Vermont businesses, including rural small businesses that would experience a disproportionate negative impact if the proposal were to advance.

The Vermont Chamber continues to advocate in the Legislature for passage of relief packages that offer the greatest eligibility flexibility possible for distressed businesses. Doing so is essential to ensuring equitable access to relief resources across Vermont’s business community.

Vermont Chamber Testifies on Broadband Need

The Vermont Chamber testified this week in the Senate Committee on Finance to highlight the need for broadband connectivity in unserved Vermont communities. Currently, 23 percent of Vermont (69,899 business and residential locations) does not have access to broadband at 25/3 mbps – the service speed that defines broadband under federal law. This speed is also more than sufficient for most current learn- and work-from-home tasks. During testimony, the Vermont Chamber encouraged senators to work to advance funding to provide broadband to households currently unable to work from home, learn from home or receive telehealth services because of connectivity limitations.

Debate continues in the Legislature around what internet speed goal should serve as the threshold to qualify for state infrastructure funds. While the Vermont Chamber recognizes the need to safeguard state funds and invest in lasting infrastructure projects, we are also cognizant of the reality that thousands of Vermont households lack access to federally defined broadband, which places those households and their communities at a staggering public health, academic, and economic disadvantage. We will continue to encourage the Legislature to quickly act to provide broadband access to unserved communities

Paycheck Protection Program Changes Now Law

The Paycheck Protection Program Flexibility Act (PPPFA) became law late last week. PPPFA makes several changes to the existing program, including extending the covered period from eight weeks to 24 weeks, extending the date to restore your full-time employees from June 30 to December 31, and increasing the term of a loan to a minimum of five years, from two years. PPPFA also provides an additional provision that enables forgiveness to be determined without regard to a proportional reduction in employees. This change would apply in circumstances when an employer is able to document the inability to rehire an employee who was on payroll on February 15, the inability to rehire a similarly qualified employee, or the inability to return to the same level of business activity they had prior to February 15 due to COVID-19 restrictions. The Vermont Chamber pushed for the changes included in the PPPFA in our advocacy with the congressional delegation.

Resource Roundup

• Vermont Chamber Passport to Recovery
  The Vermont Chamber’s new Passport to Recovery portal is dedicated to the Vermont community in place of our Workforce & Talent Summit and shares timely webinars to help businesses, employers, and employees across the state. Economic, sales & marketing, health, and workforce webinars will be provided through June and July.
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• Money.com: Best Small Business Loans of 2020
  Money.com compiled their take on the best small business loans of 2020. While the best loan will depend on multiple individual factors, they note that some lenders stand out for their low starting rates, fair loan terms, and easy application process.
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• Vermont Chamber Conducts Lodging Restart Survey to Guide Advocacy
  The Vermont Chamber is conducting a survey of the state's lodging properties. Responses will help inform the Chamber's advocacy efforts. Please contact Emily Rivers with any questions.
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• Department of Labor RETAIN Program Provides Return to Work Resource
  Vermont Retaining Employment and Talent After Injury/Illness Network created a checklist resource to help guide employers and employees as they return to work. Please contact Deborah Kennedy with questions.

In Case You Missed It

• Scott Appoints Interim Labor Secretary Harrington to Permanent Post
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• Vermont House Prepares $600 Million COVID-19 Spending Package
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• Coworking Spaces, Slowly Reopening, See Promise in Push for Remote Work

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Bad Week for Businesses in Legislature

Despite unprecedented economic downturn, the Legislature advanced several proposals over the last week that are harmful to businesses. Recent legislative action included:

• House leadership called for slashing the Administration’s economic relief package by $200 million
• The Senate Committee on Finance advanced a bill that would prohibit lodging operators from providing guests with single-use personal care products. This mandate comes at a time when lodging operations are struggling to survive and the Centers for Disease Control and Prevention is encouraging the use of single-use toiletries for safety reasons related to COVID-19
• The House voted to increase business property tax rates from $1.59 per $100 in 2020 to $1.628 per $100 in 2021
• The Senate Committee on Finance leadership expressed opposition to providing funds to build out broadband in unserved communities struggling with work-from-home, learn-from-home, and telehealth shortfalls

The Vermont Chamber encourages the business community to reach out to their legislators with questions or concerns about these recent actions.

Vermont Chamber Calls for Changes to Economic Relief Package

Vermont Chamber President Betsy Bishop testified in the House Committee on Commerce and Economic Development this week on the economic recovery and relief package proposed by the Scott Administration in late May. Vermont Chamber member Lynn Green of the Four Chimney’s Inn in Bennington also testified, largely echoing Betsy’s input, while also providing a detailed analysis of the relief package.

The Vermont Chamber’s testimony called for several changes, including ensuring businesses who have received PPP or EIDL funds are not disqualified from accessing the funds, lifting of the trigger that limits use of portions of the relief package to businesses with a gross annual revenue of $2.5 million or less, removal the fulltime employee (FTE) requirement (many small lodging establishments are under the existing five FTE requirement), and an ask to broaden the permissible use of relief funds to include certain physical upgrades. The Vermont Chamber is also pushing for maintaining the original topline funding amounts and the proposed investment in marketing, with a revision that would make the marketing plan a phased approach that corresponds with the anticipated economic and regulatory realities the state is expected to face over the next several months.

The Senate Committee on Economic Development, Housing and General Affairs introduced draft legislation this week that would make changes to the Administration’s proposal. However, the draft legislation does not address several of the previously mentioned issues with the relief package. In an additional development, the House Committee on Commerce and Economic Development reviewed a proposal from the Speaker’s office that called for a reduction of $200 million in the relief package. Considering that current need far outweighs any of the relief proposals yet discussed, the Vermont Chamber strongly opposes these changes. Draft legislation also proposed in the House would make significant reductions to the relief package.

Immediate relief in the form of grants is essential to mitigating the economic downturn currently impacting almost every sector, and the Vermont Chamber will continue to work with legislative leaders to advance relief funds with necessary changes.

Lodging and Restaurants Restrictions Updated

During Friday’s press conference, Governor Scott announced new guidance for indoor dining and outlined a plan to welcome out-of-state tourists. In keeping with the Governor’s “turn of the spigot” plan that has incrementally reopened the economy over the last few weeks, indoor dining is now allowed at 25 percent capacity or 10 total customers and staff combined, whichever is greater as of June 8. All current social distancing standards, as well as state and CDC guidelines that are in place now for dining facilities, will remain. Additional guidance is available via the Agency of Commerce and Community Development. Also announced were changes to lodging and campgrounds guidelines. Effective June 8, lodging properties and campgrounds may book 50 percent of rooms for non-residential lodging or have a total of 25 guests and staff on the property – whichever is greater. Detailed guidance is also available from the Agency of Commerce and Community Development.

Important updates to quarantine restrictions were also highlighted. While the continued gradual reopening is not ideal for the hospitality industry, it is a small and desperately needed step forward:

• Effective June 8 people living in New England or Upstate New York will be permitted to travel to Vermont without quarantine restrictions if they are traveling from a county with similar active COVID-19 caseloads as Vermont. The threshold is set at 400 or fewer cases per million. Weekly guidance will be issued identifying locations travelers are permitted to travel freely to Vermont from.
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• Effective June 15 travelers from counties that do not meet the requirement above are permitted to travel to Vermont with the following restrictions:
  
  • (i) complete a 14-day quarantine; or (ii) complete a 7-day quarantine followed by a negative test – in their home state and enter Vermont without further quarantine restrictions if they drive directly from their home via their personal vehicle.
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  • (i) a 14 day quarantine; or (ii) a 7-day quarantine followed by a negative test – in a Vermont lodging establishment regardless of destination origin or manner of travel (travelers must stay in their quarantine location for the duration of quarantine other than to travel to and from a test site).

Please contact Amy Spear with any questions.

Vermont Chamber Joins States in Calling for Childcare Relief

The Vermont Chamber joined State Chambers around the nation in signing onto a letter calling on Congress to provide temporary emergency assistance targeted to licensed childcare providers to help cover increased expenses and forgone revenue directly tied to maintaining public health. A recently issued report by the U.S. Chamber shows that of states examined, even prior to the COVID-19 pandemic, losses averaged $1 billion annually in economic activity due to breakdowns in childcare.

Bolstering the state’s childcare resources is a vital component of restarting the economy and is essential to the economic future of Vermont. The Vermont Chamber continues to support improving childcare resources in the state. Doing so is essential to maximizing Vermont’s workforce potential and will also help to attract new families to live and work in Vermont.

Paycheck Protection Program Changes Coming

Following passage in the U.S. House last week, the U.S. Senate unanimously passed changes to the Paycheck Protection Program (PPP) on Wednesday. The Paycheck Protection Program Flexibility Act (PPPFA) now heads to the President’s desk where it is expected to be signed into law. PPPFA makes several changes to the existing program, including extending the covered period from eight weeks to 24 weeks, extending the date to restore your fulltime employees from June 30 to December 31, and increasing the term of a loan to a minimum of five years, from two years. PPPFA also provides an additional provision that enables forgiveness to be determined without regard to a proportional reduction in employees. This change would apply in circumstances when an employer is able to document the inability to rehire an employee who was on the payroll on February 15, the inability to rehire a similarly qualified employee, or the inability to return to the same level of business activity they had prior to February 15 due to COVID-19 restrictions. The Vermont Chamber has pushed for the changes included in the PPPFA in our advocacy with the congressional delegation.

Senate Committee Advances Concerning New Lodging Regulations

The Senate Committee on Finance advanced S.227, a bill that would prohibit lodging establishments from providing personal use products in single-use bottles. With many establishments closed or operating in a limited manner, the possibility of being forced to invest additional funds in retrofitting rooms with multiple-use dispensers is a daunting prospect for lodging operators. As a result of COVID-19, there also currently exists considerable safety concerns related to the use of community-use appliances. Guidance dictating the use of such appliances will largely depend on rapidly developing regulations and recommendations from state and federal health agencies. Despite the concerns from a variety of lodging operators, and Committee acknowledgment of the crisis facing the lodging sector, the Committee chose to advance the bill. The legislation will now move to the Senate floor for a vote by the full body.

The Vermont Chamber will continue to convey to legislators the reality that businesses require immediate action to advance relief funds and at this time lodging establishments in particular have little or no capacity to absorb additional administrative mandates, added costs, or safety risks.

Senate Committee Reluctant to Provide Emergency Broadband Access

On Thursday, the Vice Chair of the Senate Committee on Finance suggested he was not inclined (24:50) to support plans to provide emergency broadband access to Vermonters currently impacted by a lack of access to work-from-home, learn-from-home, and telehealth capabilities. The Vice-Chair specifically expressed reluctance to support the provision of emergency broadband funds to build out broadband at federally defined broadband levels, saying instead he may prefer to withhold funds until a hypothetical plan to provide higher speeds comes to volition at an unspecified date in the future.

Currently, 23 percent of Vermont (69,899 business and residential locations) does not have access to broadband at 25/3 Mbps – the service speed that defines broadband under federal law. This speed is also more than sufficient for most current learn- and work-from-home tasks. The Vermont Chamber recognizes the need to safeguard state funds and invest in lasting infrastructure projects. That said, we are also fully cognizant of the reality that tens of thousands of Vermonters lack access to the internet speeds necessary to perform basic web browsing functions. We will continue to encourage the Legislature to quickly act to provide broadband access to unserved communities.

Resource Roundup

• Economic Recovery and Relief Package Webinar Series: archive of ACCD's sector specific webinars.
• American Hotel and Lodging Association (AHLA) Safe Stay guidelines for industry-wide hotel cleaning standards.

In Case You Missed It

• House Lawmakers Move to Reverse Scott Budget Cuts
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• Jay Canning: Let Vermont Hospitality Revive
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• John Killacky: The Arts Are Essential Businesses
• 
  
• Weekly Unemployment Claims Keep Falling, but Slower
• 
  

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Vermont Chamber Submits Letter of Support for Broadband Infrastructure Grant

The Vermont Chamber of Commerce submitted a letter supporting the Department of Public Service’s application for a $1 million Northern Borders Regional Commission (NBRC) infrastructure grant. If awarded, the funds will be used to meet the match requirement for a Vermont Economic Development Authority Broadband Expansion Loan. The $1 million investment by the Northern Borders Regional Commission could potentially leverage up to $9 million from VEDA, all of which would be directed toward broadband infrastructure buildout in unserved communities.

The Vermont Chamber believes Vermont is well positioned to be a work-from-home capital and our team will continue working with state officials and the congressional delegation to advocate for the funding necessary for realizing this goal.

Vermont Chamber Pushing for Changes in Economic Relief Package

House and Senate Economic Development Committees continued review of the Scott Administration’s recent economic relief proposal. The economic recovery and relief package proposed by the Administration includes $310 million in immediate relief and is largely funded by the federal CARES Act, which provided Vermont with $1.25 billion. Included in the recovery funds is a $90 million investment in economic recovery aid, additional funds for marketing Vermont, and emergency grants and loans to businesses that either closed, are primarily closed, or have experienced significantly reduced revenue

The Vermont Chamber is pushing for several changes, including ensuring businesses that have received PPP or EIDL funds are not disqualified from accessing the funds, lifting of the trigger that limits use of portions of the relief package to businesses with a gross annual revenue of $2.5 million or less, removal of the full-time employee (FTE) requirement (many small lodging establishments are under the existing five FTE requirement), and an ask to broaden the permissible use of relief funds to include certain physical upgrades. The Vermont Chamber is also pushing for maintaining the proposed investment in marketing with a revision that would make marketing a phased approach that corresponds with the anticipated economic and regulatory realities the state is expected to face over the next several months.

Businesses continue to suffer because of COVID-19 related closures, restrictions, and an economic downturn, and the Vermont Chamber’s advocacy includes requests that the Legislature approve the proposal quickly and offer maximum flexibility to businesses seeking financial support. Immediate relief in the form of grants is essential to mitigating the economic downturn currently impacting almost every sector, and the Vermont Chamber will continue to work with legislative leaders to advance the relief funds.

Priorities Surface at Lodging Town Hall with Congressman Welch

Congressman Peter Welch heard from over 80 businesses in the state’s lodging sector during a virtual Vermont Chamber Town Hall about how COVID-19 is affecting Vermont’s lodging properties. The May 26 Town Hall was an opportunity for lodging businesses to further Congressman Welch’s understanding of COVID-19’s impact, share ideas, and help shape what future assistance will look like. There was a resounding consensus among lodging proprietors that the industry has been decimated by the economic downturn resulting from the health crisis and that more needs to be done to help these Vermont businesses survive.

Lodging industry representatives urged Congressman Welch to advocate for changes to the Paycheck Protection Program and unemployment insurance. They also asked for consideration of tax credits, and liability protections. The impacts of COVID-19 have devastated the lodging sector, and the Vermont Chamber will continue to advocate for financial and regulatory relief to keep the industry on solid ground.

Campaign Season Begins

May 28 marked the deadline for major party candidates to file consent of candidate forms and financial disclosures for the primary election on August 11. This date would also generally fall outside of the legislative session. With the Legislature continuing to meet, this summer’s campaign season will have incumbent lawmakers splitting their time between policymaking and campaign work. Several high-profile sitting House legislators will not seek reelection in the Fall. Senate President Pro Tempore Tim Ashe and Senator Debbie Ingram are pursuing Lt. Governor David Zuckerman’s seat, which will become available in January as a result of the Lt. Governor’s own campaign in pursuit of the governorship.

U.S. Chamber Prioritizes Investment in Childcare

The U.S. Chamber of Commerce is exploring the economic impacts of childcare issues on working parents. A recently issued report by the U.S. Chamber shows that of states examined, losses averaged $1 billion annually in economic activity due to breakdowns in childcare. The report also provides solutions policymakers could consider to address shortfalls in childcare availability and early education.

The Vermont Chamber is supportive of initiatives that maximize the workforce potential of Vermont’s existing population and of efforts that would attract new families to live and work in Vermont. Bolstering the State’s childcare resources will be a vital component of restarting the economy and is essential to the economic future of Vermont.

Report Details Impacts of Short-Term Rentals

The Senate Committee on Economic Development, Housing and General Affairs received a report on the disparities in the taxation and regulation of traditional tourist lodging establishments and the short-term rental (STR) market. The study concludes short-term rentals contribute positively to the Vermont tourism industry but are not regulated in an equivalent manner to the traditional hotel and restaurant industry. Findings also show the state does not possess a comprehensive list of short-term rentals. Possible solutions included a recommendation for mandatory registration of STRs and statewide uniformity of regulation. The Vermont Chamber supports uniform and consistent regulation for lodging properties hosting visitors overnight and we look forward to working with the Legislature to implement some of the report’s recommended policy solutions.

Congress Advances Paycheck Protection Program Changes

The U.S. House passed the Paycheck Protection Program Flexibility Act (PPPFA), which would enact changes to the Paycheck Protection Program (PPP). If passed into law, the bill would extend the eight-week period businesses have to use PPP money to qualify for loan forgiveness to 24 weeks and also change the requirement that at least 75 percent of PPP funds be used for payroll expenses.

The new ratio would enable businesses to use up to 40 percent of PPP funds on costs unrelated to payroll. The bill was a compromise extracted from the previously passed HEROES Act, which met considerable opposition in the U.S. Senate and is not expected to advance. The Vermont Chamber has pushed for the changes included in the PPPFA in our advocacy with the congressional delegation.

Vote on Personal Care Products Bill Postponed

The Senate Committee on Finance reviewed S.227, a bill that would prohibit lodging establishments from providing personal use products in single-use bottles. With many establishments closed or operating in a limited manner, the possibility of being forced to invest additional funds in retrofitting rooms with multiple-use dispensers is a daunting prospect for lodging operators. As a result of COVID-19, there also currently exists considerable safety concerns related to the use of community-use appliances. Guidance dictating the use of such appliances will largely depend on rapidly developing regulations and recommendations from state and federal health agencies. The Committee appeared sympathetic to industry concerns when it postponed a possible vote on the bill.

The Vermont Chamber will continue to convey to legislators that businesses require immediate action to advance relief funds, and that at this time lodging establishments in particular have little or no capacity to absorb additional administrative mandates, costs, or safety risks.

Solutions Hub Ideas Sent to Governor Scott

Vermont Chamber President Betsy Bishop sent a letter this week to Governor Scott with relief ideas collected from the business community through the Solutions Hub. The Vermont Chamber Solutions Hub is an online suggestion box for members of the business community to propose policy solutions for economic recovery. As the letter indicates, the Chamber recognizes the Governor has already proposed and implemented policies to address many of the suggestions but hopes some of the ideas will aid in the development of future relief. The ideas were also shared with the State of Vermont Economic Mitigation and Recovery Task Force action teams.

Even with the prospect of significant financial relief on the horizon, Vermont’s short- and long-term economic wellbeing continues to face unprecedented hardship. It is unlikely that any level of policy relief will fully offset these losses, but a continued emphasis on focused resource allocation, coupled with certain regulatory accommodations, will serve to partially mitigate the ongoing economic challenges related to COVID-19. Please contact Vermont Chamber Government Affairs Director Charles Martin with any questions.

Resource Roundup

As our state responds to COVID-19, the Vermont Chamber has seen excellent content from our members and Vermont agencies, which we are compiling weekly in our Resource Roundup.

Additionally, the Vermont Chamber is pleased to announce the creation of our upcoming “Passport to Recovery: Forging a Way Forward” portal. This new virtual resource will be dedicated to the Vermont community and will host timely webinars with content to help businesses, employers, and employees across the state. If you have a recorded webinar you would like us to consider for inclusion, please send it to news@vtchamber.com.

• U.S. Treasury interim final rule on PPP loan forgiveness
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• U.S. Treasury Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities
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• Updated U.S. Treasury PPP FAQ worksheet
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In Case You Missed It

• Scott Runs for Reelection, but Won’t Campaign for Now
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• House Cancels Meetings, Senate Goes Ahead After Zoom Glitch
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• In New Age of Remote Work, Vt. Businesses Consider Office Space Needs
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• Final Reading: Senators Grasp for Revenue Alternatives to Fill Budget Holes
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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.

Governor Scott Proposes $400 Million Relief Plan

The economic recovery and relief package includes $310 million in immediate relief and is largely funded by the federal CARES Act, which provided Vermont with $1.25 billion. Over the last several weeks, the Vermont Chamber has pushed for a relief package to help Vermont businesses through mandatory closures and restricted restart and recovery periods. This economic relief package addresses much of the need highlighted by the Vermont Chamber during advocacy efforts.

Included in the recovery funds is a $90 million investment in economic recovery aid, additional funds for marketing Vermont, and emergency grants and loans to businesses that either closed, are primarily closed, or have experienced significantly reduced revenue. The proposal requires legislative approval and the Vermont Chamber will continue to work with legislative leaders to encourage immediate action.

February and March Meals and Rooms Tax Abatement Unlikely

After a coordinated push by the Vermont Chamber, Governor Scott directed the Commissioner of Taxes to exercise his authority to provide relief to Vermont businesses who owed March and April meals and rooms or sales and use tax. The Administration’s actions meant that business owners who were unable to meet the original deadlines would not be charged any penalty or interest on these taxes for late submissions. Due to a recently agreed upon budget plan that anticipates future collection of these taxes, it now appears unlikely that the Legislature will approve full abatement.

Legislature Revisits Single Use Plastics Ban for Lodging and Climate Bill

Legislators continued committee deliberation of bills unrelated to COVID-19 response or economic relief. The Senate Committee on Natural Resources reviewed the Global Warming Solutions Act (GWSA). If implemented, GWSA would establish an advisory council to assist in the implementation of policies that seek to revise Vermont’s current emissions goals, including a mandated emissions reduction to 80% below 1990 emissions levels by 2050. The Committee also reviewed a bill that would prohibit lodging establishments from providing single-use personal care products to guests. With many establishments closed or operating in a limited manner, the possibility of being forced to invest additional funds in retrofitting rooms with multiple-use dispensers is a daunting prospect for lodging operators.  There also exists considerable uncertainty around which community-use appliances will be permitted moving forward as a result of COVID-19 safety measures. This largely depends on rapidly developing guidance from state and federal health agencies.

The Vermont Chamber will continue to convey to legislators the reality that businesses require immediate action to ensure relief funds are distributed in a timely manner. At this time, businesses have little or no capacity to absorb additional administrative mandates or costs.

Vermont Chamber Submits Comment on Broadband Plan

After weeks of discussions with public and private stakeholders, the Vermont Chamber submitted public comment to the Department of Public Service (DPS) regarding the Department’s recently proposed Emergency Broadband Action Plan (EBAP). If implemented, the EBAP would deliver emergency broadband access to areas with limited or no connectivity. Currently, 23% of Vermont (69,899 business and residential locations) do not have access to broadband at 25/3 Mbps – the service speed that defines broadband under federal law. This speed is also sufficient for most current learn and work-from-home tasks.

The Vermont Chamber’s comments were supportive of the EBAP and called for public and private partnerships to address the immense need facing communities around the state who do not have access to broadband. The Vermont Chamber believes Vermont is well positioned to be a work-from-home capital and our team will continue working with state officials and the congressional delegation to advocate for the federal funding necessary for realizing this goal.

DOL Argues Workers’ Compensation Bill Unnecessary

During testimony delivered to the House Committee on Commerce and Economic Development, the Director of Vermont’s Workers’ Compensation and Safety Division explained to legislators that recently proposed changes to workers’ compensation eligibility may be unnecessary. DOL’s testimony pointed out that very few positive cases have been denied and that those who have had to stop working due to the virus have generally continued to receive wage replacement by their employers, which means there has been little need for the state to provide workers’ compensation payments.

The discussed legislation passed in the Senate despite little being known about the impact these changes could have on employer’s workers’ compensation insurance rates. The Vermont Chamber is communicating with House legislators to advocate for a result that does not place unsustainable additional costs on businesses, many of which continue to struggle financially as a result of the economic crisis brought on by the COVID-19 pandemic.

Vermont Chamber Assists Tourism Industry with Reopening Questions

The Vermont Chamber is the restaurant and lodging trade association for the state of Vermont and the designated state affiliate of the National Restaurant Association and the American Hotel and Lodging Association. As the statewide voice for Vermont’s tourism industry, the Vermont Chamber staff is well-versed on the Work Safe additions to the Be Smart, Stay Safe Order, and has been fielding reopening inquiries and providing clarifying guidance as businesses prepare to reopen.

As you prepare to reopen your tourism business and train your employees, please do not hesitate to contact Amy Spear with questions or concerns.

Resource Roundup

• Treasury Issues New PPP Guidance
  The Treasury has issued updated guidance, including an application form businesses can use to apply for forgiveness of PPP loans.
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• Steps to Prevent Water Quality Issues Before Your Business Reopens
  The Departments of Health and Environmental Conservation set up a website where building and facility managers can access guidance and recommendations for actions to take before a building’s drinking water is used again.
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• ServSafe Reopening Guidance
  ServSafe developed a free on-demand training video to train operators and staff to reopen restaurants with new COVID-19 health and safety guidelines.
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• Guide to PPP Loan Forgiveness
  The U.S. Chamber of Commerce created a guide designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.
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• Restaurants and Other Industries Receive Additional Reopening Guidance
  The Agency of Commerce and Community Development released additional reopening guidance this week covering a variety of industries, including restaurants. Details include information on new mandatory operating procedures and best practices for limited reopening.
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• Vermont Chamber to Host Lodging Townhall With Congressman Welch
  The Vermont Chamber of Commerce is hosting a Lodging Town Hall with Congressman Peter Welch. The topic of discussion is the effect of COVID-19 on the lodging industry in Vermont. Congressman Welch is interested in understanding how lodging properties have been impacted and what relief businesses will need now and in the future. This is an opportunity to ask questions, share ideas and have a say in what future assistance will look like. Questions may be submitted during the registration process.
  Details:
  • Date: Tuesday, May 26, 2020
  • Time: 11am-12 noon
  • Register here
    • Instructions to join the meeting will be sent with your registration confirmation

In Case You Missed It

• Restaurants Can Open for Limited Outdoor Dining Beginning Friday
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• Final Reading: Stricter Mask Requirements May Come From the Statehouse
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• Vt. Lawmakers to Address Scott Stimulus Plan Next Week
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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.