House Reviews Tourism Budget Bill
Consensus Lacking on Act 250 Bill
Senate Passes $121 Million Minimum Wage Bill
Vermont Chamber Testifies on Non-Compete Agreements
Medical Monitoring Bill Puts Vermont’s Agricultural Supply Chain at Risk
Conference Committee Advanced Employee Misclassification Bill
In Case You Missed It
House Reviews Tourism Budget Bill
The House Committee on Commerce and Economic Development took testimony on increased investment in destination marketing Tuesday, Wednesday, and Thursday. The Committee is expected to continue tourism investment discussions next week.
The Vermont Department of Tourism and Marketing unifies the voice of the Vermont brand to tell the story of Vermont’s iconic experiences, and the tourism industry is critical to the health of the State’s economy. While not every witness was supportive of Vermont’s destination marketing efforts, the Vermont Chamber is continuing to advocate for the tourism industry and supporting Governor Scott’s proposed $500,000 investment in Vermont’s destination marketing.
Individuals and businesses can join the Vermont Chamber in urging the Legislature to invest in Vermont tourism by signing the petition to show support of the increased investment
Consensus Lacking on Act 250 Bill
The House Natural Resources Committee continued deliberations on legislation that would overhaul Act 250, Vermont’s principal land use law. The committee heard testimony from several stakeholders, each delivering a unique point of view on the impacts of proposed changes to Act 250. Among possible Act 250 changes that concern the Vermont Chamber are proposals that would lower the elevation threshold that triggers Act 250. This threshold is generally set at 2,500 feet, but some advocates are pushing to lower that elevation to between 1,500 and 2,000 feet, a move that would bring hundreds of thousands of additional acres into Act 250 jurisdiction, which subsequently lowers the values of impacted properties.
Early in January, the Scott Administration and the Vermont Natural Resources Council (VNRC) presented the House Natural Resources Committee with a mutually supported plan to replace District Commissions (bodies that generally review larger Act 250 projects) with three-member professional boards. Doing so would greatly increase consistency in the permitting process. Over the last several years, businesses have expressed frustration with the often inconsistent and unpredictable paths of the existing permit process. The recommendations also included Act 250 permit exemptions for projects within municipalities holding downtown designations. These exemptions would better allow for economic growth, while also limiting the negative environmental impacts of sprawl. In an unexpected move, the Natural Resources Committee recently all but rejected proposals to reform district commissions.
In 2019, little progress was made on Act 250 reform, despite it being a priority of legislative leadership. The Vermont Chamber testified on Act 250 conveying the business community’s main concerns. The Vermont Chamber remains supportive of recommendations jointly offered by the Scott Administration and the Vermont Natural Resources Council, and we will continue working to ensure communities, both urban and rural, are not negatively impacted by any final changes to Act 250.
Senate Passes $121 Million Minimum Wage Bill
The Senate passed a minimum wage bill that would cost businesses $121 million in additional payroll allocation if signed into law. Analysis conducted by the Joint Fiscal Office indicates the bill would cost the state and private sector $53 million in 2021, and $121 million in additional payroll allocation in 2022. The proposed increases would also slightly suppress (by 0.08%) the State’s total GDP growth over the same period. Legislators on the conference committee tasked with finalizing the bill also verbally indicated that the proposed two-year phase-in to a wage target of $12.55 by 2022 would serve as a jump start for future increases. Having passed in both the House and Senate, the bill now moves to the Governor’s desk for his consideration. In recent public remarks, Governor Scott expressed his concern about the potential detrimental economic impacts of additional minimum wage increases on businesses in rural communities.
The Vermont Chamber has repeatedly testified on the negative impacts of additional minimum wage increases beyond those already in statute, including by highlighting that small businesses in rural areas will face outsized difficulties in adjusting to any new wage mandates.
Vermont Chamber Testifies on Non-Compete Agreements
The Vermont Chamber has testified multiple times on a bill that seeks to limit the use of non-compete agreements, and again delivered verbal testimony this week. Non-compete agreements aid in the protection of proprietary and confidential information, intellectual property, and customer relationships. During the 2019 legislative session, the House Committee on Commerce and Economic Development asked the Vermont Chamber to work with legislators to develop a bill that would not cause sustainable harm to businesses. The most recent version removes inclusions that would have forced employers to pay wages to former employees for the lifespan of mutually agreed upon non-compete contracts. This feature was included in earlier versions of the bill and the Vermont Chamber was successful in working to remove it from the most recent draft. However, the current draft would require any employer seeking to implement a non-compete to pay for a potential employee’s attorney fees related to employment contract consultation. It would also bar non-competes from taking effect for individuals making less than $75,000 a year. In this week’s testimony, the Vermont Chamber recommended to the House Commerce Committee that portions of the bill requiring employers to provide legal fees be struck.
The Vermont Chamber recognizes the vital importance of ensuring that businesses possess the tools to protect sensitive information. We will continue to oppose any bill that seeks to impose a blanket prohibition on the use of non-compete agreements or forces employers into unsustainable financial or legal obligations. Please contact Charles Martin if you have any questions or comments on this issue.
Medical Monitoring Bill Puts Vermont’s Agricultural Supply Chain at Risk
U.S. District Court Judge Geoffrey Crawford recently ruled that medical monitoring for industry chemicals is allowed as a legal remedy without a physical injury. Following this decision, and the Senate Judiciary Committee’s 3-2 vote and recommendation to override the Governor’s veto on S.37, the Senate Agriculture Committee reviewed S.37 with an eye on protecting Vermont’s farming and agricultural economy.
While there is an exemption for the use of pesticides, S.37 would put the farming supply chain at risk. Any large facility with 10 or more full-time employees, or 500 employees employed at all facilities, are vulnerable to lawsuits. Large facilities-- such as cheese, dairy and food manufacturers and slaughterhouses-- would face uncertainty, liability, risks, and costs.
The continued debate on S.37 suggests growing concern and lack of votes to pursue Governor veto override strategy. The Vermont Chamber has struck a balance between protecting Vermonters and the environment, while not disrupting insurance markets which would put manufacturers and the respective supply chains at significant risks and costs.
Conference Committee Advanced Employee Misclassification Bill
A conference committee of House and Senate legislators agreed to a bill that would allow the Attorney General to investigate businesses that have misclassified multiple workers within a set time period. Employee misclassification is generally understood as instances in which an individual working under an employer is classified as an independent contractor when their employment circumstances more appropriately fit the criteria of an employee.
The Department of Labor currently adjudicates instances of employee misclassification, and the need for additional investigatory resources remains unclear. The Department of Labor has previously indicated that existing department resources can sufficiently handle misclassification cases. In 2019 testimony, the Attorney General’s office expressed lukewarm interest in taking on this additional responsibility. No representatives from the Attorney General’s office were present for the conference committee’s deliberations this week.
The Vermont Chamber understands the importance of businesses complying with all state and federal employment regulations. However, legislation that would add duplicative regulatory frameworks to existing and otherwise functional enforcement systems is unnecessary.
In Case You Missed It
Legislation: Tobacco Industry Targets Vermont's Proposed Ban On Menthol Products
Politics: Bill Allows Emojis on License Plates
Politics: Molly Gray Joins Lt. Governor Race
Legislation: Police Use-of-Force Bill Introduced In House
Legislature: NEK Day at the Statehouse Includes Broadband and Act 250 Discussions
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