Issue Updates from the State House | Week of May 11, 2026

Issue Updates from the State House

Week of May 11, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Noncompete: The Senate advanced S.230, removing language that would have prohibited noncompete contracts for nonexempt employees noting the lack of time for Senate committees to dive into complex and impactful legislation. The bill now returns to the House.
  • Data Privacy: The House Commerce and Economic Development Committee reviewed a new draft of S.71 this week that continued to fall short of a regionally compatible approach to consumer data privacy. With time running short in the session, the path forward for the bill this year is becoming increasingly uncertain. 
  • Event Ticketing: The House concurred with the Senate-passed version of H.512. The bill now moves to the governor’s desk.
  • Economic Development: The Senate concurred with House-passed amendments to S.327, advancing several workforce and industry priorities while introducing new business tools and targeted program changes. The bill now moves to the Governor’s desk.
  • Health Care Savings: The House Health Care Committee advanced S.190, directing hospital rate reductions toward Qualified Health Plans and teachers. As a result, the wider commercial market will see comparatively slower relief in the coming year. The bill has now moved to the House Ways and Means Committee.
  • Property Classifications: The Senate Finance Committee reviewed H.955, adopting an amendment clarifying that lodging establishments will fall under the same classification as other business properties when new classifications are implemented. While previously assumed, the clarification provides important long-term certainty for lodging properties.
  • Housing: Legislative committees continued work on S.328 and H.775, moving an off-site construction pilot to the Treasurer’s Office, refining multiunit construction regulations, and maintaining current funding structures for VHIP rather than allowing advance funding.
  • Bottle Bill: Following changes adopted by the Senate Natural Resources Committee, the Senate Finance Committee took testimony this week on H.915, which would restructure Vermont’s bottle redemption system through a Producer Responsibility Organization model. The proposal would add an additional one cent per container at checkout for consumers and impose an estimated $2 million in new costs on beverage manufacturers. A broad coalition of small businesses has signed a petition urging lawmakers to reject the bill over concerns about higher costs and operational impacts.
  • Wetlands: The Legislative Committee on Administrative Rules (LCAR) continued review of proposed wetlands rules updates addressing housing shortages, discouraging sprawl, and preserving wetlands. LCAR indicated that they would be ruling negatively on the rule leaving the current hyper regulatory rules in place.  
  • Cannabis: The House Government Operations and Military Affairs Committee advanced S.278, amending the bill to allow only five cannabis event permits annually, addressing potential risks and implementation challenges that may arise. The bill now moves to the House Ways and Means Committee.

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Megan Sullivan

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Vice President of Government Affairs

802-522-6316

RECENT NEWS

Data Privacy: Movement, But Major Decisions Ahead

Data Privacy: Movement, But Major Decisions Ahead

Data privacy negotiations are entering a more active and consequential phase in both chambers, with signs of alignment emerging alongside continued areas of concern.

In House Commerce, there is a clear shift underway to move away from draft 2.3 and back toward a framework closer to S.71 as passed by the Senate, incorporating updates adopted in Connecticut since the bill has remained in committee for more than a year. This recalibration reflects meaningful progress toward a more regionally aligned baseline.

At the same time, early committee conversations underscore that several key policy decisions remain unresolved. Even within this broader shift toward alignment, significant areas of uncertainty will shape the bill’s overall impact. It remains unclear what data minimization standards will be included in a new draft. There is also ongoing uncertainty around the scope of sensitive data, particularly where Vermont may seek to expand beyond regional norms. The potential reintroduction of a private right of action adds further complexity, as does the evolving approach to exemptions, including the treatment of health data and HIPAA-related entities. Additional questions remain regarding processor obligations, contractual requirements, and how emerging provisions related to artificial intelligence and automated decision-making may ultimately be incorporated.

In parallel, the Senate is considering advancing a separate path with a data privacy amendment to proposed data broker legislation. That effort is occurring alongside broader discussions about integrating elements of S.71, with some senators emphasizing the importance of passing a regionally consistent bill this year rather than risking another session without action.

Outside of the committee process, the broader campaign around this legislation has shifted from substantive policymaking to political theater. A group calling itself “The People vs. Big Tech” has pushed inflammatory attacks against Vermont businesses, business advocacy groups, and others that have engaged on this issue in good faith for years. Led by a sitting legislator and amplified through coordinated advocacy networks, the campaign has relied more on public attacks and performative rhetoric than serious policy engagement.

At the center of the campaign are out-of-state attorneys, consultants, and advocacy interests that stand to benefit financially and politically from a first-in-the-nation framework, regardless of the consequences for Vermont businesses. Rather than advancing informed debate, the campaign has attempted to reduce a complex policy issue into simplistic messaging designed to generate outrage, not solutions.

Despite this dynamic, committee members in the house and the senate have remained focused on the actual policy questions and the practical implications for Vermont consumers and businesses, which will be critical to reaching a balanced and workable outcome.

Across both chambers, a consistent theme emerges. There is growing recognition that regional compatibility matters, particularly for businesses operating across state lines. Vermont employers have reinforced this point directly, with more than 100 businesses signing onto a letter urging policymakers to align with neighboring states and avoid creating an outlier regulatory framework.

The trajectory is moving in a more constructive direction, but the outcome will hinge on the details. Whether the final bill reflects a balanced, regionally consistent approach or introduces new and untested provisions will determine both its viability this session and its real-world impact on Vermont’s business climate.

CONNECT WITH OUR DATA PRIVACY EXPERT

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

BEYOND THE RHETORIC

Issue Updates from the State House | Week of May 4, 2026

Issue Updates from the State House

Week of May 4, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

Yield: A Committee of Conference was established to reconcile differences between the House and Senate passed versions of H.949, including average property tax increases, the use of one-time funds for tax buydowns, and excess spending threshold provisions.

 

Budget: A Committee of Conference met briefly to begin reconciling differences between the House and Senate passed versions of H.951. As discussions continue, maintaining focus on cost-effective workforce and housing programs will be necessary to ensure long-term economic growth.

 

Tax Conformity: A Committee of Conference was established to reconcile differences between the House and Senate passed versions of H.933. While differences remain, both versions contain important tax conformity updates, such as expansion of the R&D tax credit, reflecting meaningful progress toward strengthening Vermont’s economic competitiveness.

 

Act 250: The House advanced S.325, continuing land use reform momentum, maintaining 2028 interim exemptions, and repeals of tier 3 and the road rule. The bill now returns to the Senate.

 

Event Ticketing: The Senate advanced H.512, moving forward a bill aimed at curbing excessive resale prices of event tickets and strengthening consumer protections for venues using online ticketing platforms. The House is now reviewing the changes made in the Senate.

 

Sister State: The Senate advanced H.674, continuing progress on establishing a process for fostering mutually beneficial relationships between Vermont and other governments. The bill now advances to the Governor’s desk.

 

Vocational Rehabilitation: The Senate concurred with the House’s changes to S.173, advancing a bill that will maintain vocational rehabilitation program stability while evaluating potential improvements. The bill now advances to the Governor’s desk.

 

Housing: The House Ways and Means Committee reviewed S.328, considering amendments to codify the rental revolving loan fund into state law and make technical adjustments to the CHIP and TIF programs. These changes would clarify that the programs may be used alongside special assessment bonds, helping improve access to financing tools for housing and development projects.

 

Unavoidable Use: The Senate Natural Resources and Energy Committee considered an amendment to S.928 that would add a process for businesses affected by the 2032 phaseout of fluorine-treated containers to seek special exemptions to the ban when no viable market alternative exists. This added flexibility could help businesses continue operations in 2032 where suitable replacements are not yet available.

 

Healthcare Savings: The House Health Care Committee continued review of S.190, moving closer to directing hospital reimbursement rate reductions toward Qualified Health Plans and teachers rather than distributing savings more broadly across insurance markets. With high healthcare costs affecting employers and employees across all markets, concentrating savings within a limited segment could slow broader affordability relief for the wider commercial market.

 

Association Health Plans: The Senate Finance Committee continued review of H.585, discussing potential benefits of Association Health Plans as an additional option for businesses seeking to manage rising healthcare costs. While the proposal could improve affordability for employers and employees alike, the bill remains in committee with only one week left in the session.

 

Telecommunications: The Senate Finance Committee continued review of H.527, considering how best to streamline processes for continued broadband expansion and whether to keep projects out of the Act 250 process for another four years as proposed by the House. Only one week remains to advance this policy.

 

Noncompete: The Senate Economic Development, Housing, and General Affairs Committee continued review of S.230, considering adding language from H.205 that stalled in the House and would broadly prohibit non-compete agreements with limited exceptions. It is unclear if there is a Vermont specific problem this language addresses that is not currently covered by current law and the judicial system.

 

Private Equity in Healthcare: The Senate Health and Welfare Committee advanced H.583, adding flexibility but maintaining problematic precedent relating to regulation and reporting requirements for privately owned businesses. The bill now moves to the Senate Floor.

 

Bottle Bill: The Senate Natural Resources and Energy Committee continued work on H.915, a proposal that could increase costs for beverage distributors through changes to the state’s beverage container redemption system. Similar proposals have previously been vetoed by the Governor amid concerns over increased costs for consumers, retailers, and distributors.

 

Water Connections: The House Ways and Means Committee advanced S.212, helping reduce delays and costs associated with permitting and development processes. The bill now moves to the House Floor.

 

Wetlands: The Legislative Committee on Administrative Rules continued review of proposed wetlands rules updates, weighing the balance between environmental protection and reducing barriers to housing development through streamlined permitting timelines and processes. These changes would support development in growth areas, affecting only 0.2% of Vermont, while helping address housing shortages, discouraging sprawl, and preserving wetlands.

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Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Strong Privacy, Workable Policy: The Real Debate Around Vermont’s Data Privacy Bill

Strong Privacy, Workable Policy: The Real Debate Around Vermont’s Data Privacy Bill

Vermont Can Protect Privacy Without Hurting Vermont Businesses

The Vermont Chamber of Commerce supports meaningful consumer data privacy protections. Vermonters deserve more control over their personal information, and businesses benefit when consumers trust how their data is handled.

The question before lawmakers is not whether Vermont should protect consumer privacy. It should.

The question is whether Vermont adopts a strong, workable privacy law that aligns with other New England states, or whether it moves forward with first-in-the-nation provisions that have not been tested anywhere else.

What the Senate-Passed Bill Does

S.71, as passed by the Senate, gives Vermonters major new privacy rights. Under the bill, consumers would have the right to:

  • Know if a business is collecting their personal data
  • Correct inaccurate personal information
  • Ask for their personal data to be deleted
  • Get a copy of the data a business has collected about them
  • Opt out of targeted advertising, the sale of personal data, and certain profiling activities

The Senate-passed bill also requires businesses to follow security practices that protect the confidentiality, integrity, and accessibility of personal data.

Why This Matters for Vermont

Vermont businesses are not asking for no privacy law. They are asking for a law that protects consumers while also being clear, fair, and possible to follow.

Many Vermont businesses use basic digital tools to reach customers, sell products, promote events, process transactions, recruit workers, and compete in a modern economy. These are not abstract “Big Tech” companies. They are local employers, nonprofits, retailers, manufacturers, tourism businesses, service providers, and community organizations.

Concerns With the House Draft

The House proposal includes new provisions that go far beyond privacy laws in nearby states like Connecticut, Rhode Island, and New Hampshire.

These changes could:

  • Pull small businesses and nonprofits into complex regulations
  • Remove opportunities for businesses to fix mistakes before facing penalties
  • Create unclear legal standards that have not been tested in any other state
  • Restrict common digital tools local businesses use to communicate with customers
  • Increase legal risk and compliance costs for Vermont organizations

Strong privacy protections and workable rules are not mutually exclusive. Vermont can do both.

Vermont Businesses Are Speaking for Themselves

More than 100 Vermont businesses and organizations signed a letter urging the House to advance S.71 as passed by the Senate and reject novel, untested provisions.

These are Vermont employers and organizations raising real implementation concerns. They deserve to be heard in the legislative process.

The Bottom Line

This is not a choice between privacy and no privacy.

S.71 as passed by the Senate provides meaningful consumer protections, regional consistency, and a clear path for compliance.

The Vermont Chamber urges lawmakers to support the Senate-passed version of S.71 and reject novel provisions that could create unintended consequences for Vermont businesses, nonprofits, and communities.

Issue Updates from the State House | Week of April 27, 2026

Issue Updates from the State House

Week of April 27, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Tax Conformity: The Senate advanced H.933, voting down a floor amendment that would have attached a high-income earner and investments tax proposal and had broad implications for business owners. The bill now returns to the House.
  • Data Privacy: The Vermont Chamber testified before the House Commerce and Economic Development Committee on Draft 2.3 of S.71, outlining clear opposition to the current version while reaffirming support for the Senate-passed bill and openness to updates from what Connecticut passed in 2025 during the 14 months since House receipt. This position is reinforced by a sign-on letter from more than 100 Vermont businesses and organizations urging a balanced, regionally consistent approach.
  • Act 250: S.325 advanced out of House Environment with significant changes to Act 181, including repealing Tier 3 and the road rule, but shortening interim Act 250 housing exemptions from 2030 to 2028. This new version will also create a joint legislative oversight committee and initiate a Vermont Council on Rural Development–led public engagement process on future land use policy.
  • Yield Bill: On a 28-2 vote the Senate advanced H.949 with an average property tax increase of 3.8% using all available onetime funds, compared to the House-passed 7% increase using half those funds. The bill now returns to the House, where a conference committee made up of legislators from both chambers is expected to reconcile differences between the House and Senate versions of the bill.
  • Budget: On a 23-7 vote the Senate advanced H.951, approving a $9.4 billion budget with additional investments in economic development and housing programs. The bill now returns to the House, where a conference committee made up of legislators from both chambers is expected to reconcile differences between the House and Senate versions of the budget.
  • Health Care Savings: The House Health Care Committee continued review of S.190, debating the pace of hospital reimbursement rate reductions and whether resulting savings should be limited to Qualified Health Plan (QHP) enrollees or distributed broadly across all insurance markets. As health care affordability remains a growing concern, these decisions will be critical in determining whether cost relief reaches the full commercial market.
  • Economic Development: The House advanced S.327, maintaining momentum on key workforce priorities and new business support tools, but also maintaining the $5 million reduction in annual allocations to the Vermont Employment Growth Incentive. The bill now returns to the Senate.
  • Cannabis: The House Government Operations Committee reviewed S.278, examining the potential impacts of expanding access to cannabis and exploring ways to strengthen the legal retail market. Discussions will continue as the committee works to balance the growth of the industry with appropriate regulatory structures.
  • Tax Classifications: The Senate Finance Committee reviewed H.955, focusing on provisions establishing a future third tax classification and clarifying that commercial apartment buildings would fall under the non-second home category.
  • Wetlands: The Legislative Committee on Administrative Rules began reviewing proposed wetlands rules updates aimed at supporting compact, affordable housing development while aligning with Vermont’s environmental and economic goals. The Vermont Chamber submitted comments in support, and testimony from the Agency of Natural Resources provided data-informed insights driven by the Vermont Competitiveness Dashboard and the Vermont Business Climate Survey.
  • Housing: The House General and Housing committee advanced S.328, adding an annual report on the Vermont Housing Improvement Program to track effectiveness over time and retaining key funding mechanisms and programs to support housing production.
  • Sister State: The Senate Appropriations Committee advanced H.674, concurring with the Senate Economic Development, Housing, and General Affairs Committee and the House-passed version of the bill. The bill now moves to the Senate floor.
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee advanced H.512, adding exemptions for independent venues with seating capacities under 3,000 and for nonprofit venues hosting fairs, exhibitions, or community events. These changes provide added flexibility for venues, and the bill now moves to the Senate Floor.
  • Water Connections: The House Environment Committee advanced S.212, helping reduce delays and costs associated with permitting and development processes. The bill now moves to the House Ways and Means Committee
  • Bottle Bill: The Senate Natural Resources and Energy Committee continued work on H.915, considering changes to incentives for automated redemption machines, increased handling fees, and modifications to the structure of the proposed producer responsibility organization. If advanced, this bill could increase costs for beverage distributors.
  • Non-Compete: The House advanced S.230, returning the bill to the Senate Economic Development, Housing, and General Affairs Committee where members reviewed changes and signaled interest in replacing employee classification framework with a salary cap that could expand impacts beyond the House-passed version.
  • Healthcare Reform: The Senate Finance Committee reviewed but took no action on H.585, a bill that would allow Association Health Plans in 2028 contingent on federal changes, potentially expanding options for businesses facing high costs. With only two weeks remaining of the session and slow progress to date, the bill risks stalling without immediate action.
  • Aviation Day: The House and Senate Transportation Committees and the Commerce and Economic Development Committee heard from local airports and aerospace industry leaders about the important impact the aviation industry has on Vermont’s economy, driving innovation, manufacturing, and tourism.
  • Net Metering: The House Energy and Digital Infrastructure Committee heard testimony on the state of net metering, focusing on solar affordability and how reforms could shift costs between solar users and ratepayers. While action this session is unlikely, as the Public Utilities Commission continues its rate update process, the issue is expected to return next year.

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Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

House Commerce Reviews New Draft of Data Privacy Bill

House Commerce Reviews New Draft of Data Privacy Bill

The House Commerce and Economic Development Committee has begun taking up S.71, Vermont’s comprehensive data privacy bill, signaling the issue will be a central focus in the final weeks of the legislative session. The committee walked through a newly proposed draft, providing the first substantive look at how the House may approach the legislation this year.

S.71 was passed unanimously by the Senate early last year, reflecting a careful approach that aimed to balance strong consumer data protection with the operational realities facing Vermont businesses. When the bill was last taken up in the House at the end of the previous session, a proposal was introduced to strike all of the bill’s language and replace it with a significantly more expansive framework, but no further action followed.

The newly discussed draft continues to include provisions that go beyond what is currently in place in other states, raising significant concerns about regional compatibility, compliance burden, and the potential impact on Vermont’s business competitiveness. These issues are central to the viability of the bill and are expected to require substantial discussion and refinement in the weeks ahead.

The stakes remain high for the business community. Data privacy policy continues to evolve rapidly across states, and the structure of Vermont’s approach will have direct implications for competitiveness, compliance costs, and the ability of businesses to effectively operate in a digital economy. The broader policy context also remains relevant.

Two years ago, a more expansive data privacy proposal was vetoed by Governor Phil Scott due to concerns about its impact on businesses and the state’s economic climate. There has been no indication that the Administration’s position has shifted, underscoring the importance of a pragmatic and durable approach as the House considers next steps.

Importantly, committee leadership has indicated a clear intent to work collaboratively with Vermont stakeholders to refine the bill. That approach comes at a critical point in the session, where timing and policy complexity will require focused engagement to reach a workable outcome.

As deliberations continue, the coming weeks will be critical in determining whether S.71 can take shape in a way that aligns consumer protection with economic realities. The Vermont Chamber and its members have been consistently engaged on this issue and looks forward to continued engagement with the House Commerce and Economic Development Committee to support a balanced path forward that works for both Vermonters and Vermont employers.

CONNECT WITH OUR DATA PRIVACY EXPERT

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

RECENT NEWS

Issue Updates from the State House | Week of April 20, 2026

Issue Updates from the State House

Week of April 20, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Housing: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.775, continuing discussions on the off-site construction pilot program, report timelines, and balancing funding with permitting priorities. It remains uncertain which of the two housing bills advanced this session will move forward as the vehicle to incorporate shared provisions.
  • Bottle Bill: The Senate Natural Resources and Energy Committee reviewed amendments to H.915, establishing a temporary funding mechanism for moving towards a Producer Responsibility Organization and increasing handling fees on beverage distributors The short-term funding is expected to fall short of the costs required for implementation, while higher handling fees could increase operational burdens across the system.
  • Act 250: The House Environment Committee began work on amendments to S.325, repealing the road rule and tier 3 from Act 181. The bill will add a study on protecting natural resources and create a new oversight committee to deal with increasingly problematic regulatory processes.
  • Education: The Senate Education and Senate Finance Committees began reviewing H.955, addressing both policy and funding components of the bill. With limited cost savings in the House-passed version and three weeks remaining, the bill falls to the Senate to ensure meaningful education finance reform.
  • Mileage Based User Fee: Legislative Committees reviewed changes to H.944, the omnibus transportation bill that would advance a phased-in mileage-based user fee beginning at 1.4 cents per mile for electric vehicles in 2027, with potential expansion to most vehicles by 2031. While ensuring sustainable transportation funding is critical, broader discussions around new fees highlight the need to also address underlying statewide spending challenges.
  • Vocational Rehabilitation: The House Commerce and Economic Development Committee advanced S.173, which includes additional education for injured employees and a working group to evaluate potential improvements. This approach maintains program stability while laying groundwork for future enhancements. The bill now moves to the House Floor.
  • Water Connections: The House Environment Committee continued work on S.212, adding streamlined general permits for subdivision of empty land and boundary adjustments. These changes could help reduce delays and costs associated with permitting processes, making development more efficient.
  • Career Technical Education (CTE): The House Commerce and Economic Development Committee advanced S.313, adding additional considerations for student access and transportation. While making few structural changes, the bill queues up alignment with broader reform and moves toward aligning workforce training with industry needs. The bill now moves to the House Education Committee.
  • Sister State: The Senate Economic Development, Housing, and General Affairs Committee advanced H.674, concurring with the House-passed bill. The bill now moves to the Senate floor.
  • Alcohol: The Senate Economic Development, Housing, and General Affairs Committee advanced H.921, adding a requirement that malt beverage manufacturers maintain records of distribution and sales under expanded self-distribution allowances. The bill now moves to the Senate floor.
  • Yield Bill: The Senate Appropriations Committee advanced H.949, allocating $100.9 million in one-time funding for a significant property tax buydown and bringing the average increase to 3.8%. While this approach lowers short-term property tax increases, it relies on anticipated education cost savings that have yet to be realized. The bill now moves to the Senate Floor
  • Tax Conformity: The Senate Appropriations advanced H.933, preserving the language used by the Senate Finance Committee to make targeted updates to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Floor.
  • Budget: The Senate Appropriation and Finance Committees advanced H.951, funding a $9.4 billion budget and investing additional onetime funds in additional economic development programs, including the Rural Industrial Development Program, the Small Business Law and Development Centers, and the first generation homebuyer program. These changes reflect thoughtful investments in programs that align efficient spending with growth opportunities. The bill now moves to the Senate Floor
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee reviewed a new draft of H.512, clarifying definitions of ticket resellers, and adding a 2028 sunset to the regulation as a check back mechanism to ensure effectiveness.
  • Franchise Agreements: The Governor signed into law H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. This new regulation will take effect January 1, 2027.
  • Non-compete: The House General and Housing Committee advanced S.230, creating distinctions between exempt and nonexempt employee non-compete contracts and banning non-competes for non-exempt employees starting on July 1st. The bill now moves to the House Floor

CONNECT WITH OUR TEAM

Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Issue Updates from the State House | Week of April 13, 2026

Issue Updates from the State House

Week of April 13, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Paid Family Leave: The House General and Housing Committee took testimony on the roll out of the state’s voluntary Paid Family Medical Leave Insurance program and heard from paid leave advocates on their push to create an expansive state mandatory program, funded through a payroll tax.
  • Economic Development: The House Commerce and Economic Development Committee continued work on S.327, adding additional meetings for the convention center task force and establishing a hospitality and culinary apprenticeship pilot. The Vermont Chamber is named as a stakeholder in the pilot, which could help support the state’s hospitality industry.
  • Commercial Property Assessed Clean Energy: The Vermont Chamber testified in the House Commerce and Economic Development Committee on S.138, a bill that would expand Vermont’s PACE program and enable businesses to finance efficiency, renewable, and resilience improvements. The committee amended language to allow lenders to also administer the program, aiming to reduce barriers and improve adoption.
  • Non-Compete: The House General and Housing Committee introduced non-compete regulation language to S.230, creating distinctions between exempt and nonexempt employee non-compete contracts. As discussions continue, additional testimony will be needed to ensure the proposal achieves its intent without creating broader unintended impacts.
  • Tax Conformity: The Senate Finance committee advanced H.933 after a week-long review of the targeted updates the bill makes to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Appropriations Committee.
  • Act 250: House Environment Committee continued in-depth review of S.325, considering amendments to repeal the road rule and Tier 3 category. These changes recognize the broken process in the roll out of Act 181, impacting rural landowners across Vermont.
  • Yield Bill:
  • The Senate Finance Committee advanced H.949, allocating additional funding for a larger buydown than advanced by the House and bringing the Senate far closer to the Governors recommendation, setting the average property tax increase to 3.8%. The amendment also reduces excess spending thresholds from 118% increases to 112%, and banks on education cost savings in future years to prevent large future rate hikes.
  • Career Technical Education (CTE): The House Commerce and Economic Development Committee continued work on S.313, adding a study on streamlining educator requirements to improve access while maintaining instructional quality. As the bill moves closer to advancement, progress continues towards aligning workforce training with statewide industry needs.
  • Education: The House advanced H.955 following a closely contested debate on the Floor, approving a bill that relies on voluntary alignment and mergers. With significant departure from the Governor’s proposal, this debate will continue.
  • Alcohol: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.921, considering removal of the proposed 2028 sunset on small brewer self-distribution for amounts under 3,000 barrels.
  • Vocational Rehabilitation: The House Commerce and Economic Development Committee reviewed a new draft of S.173, replacing proposed program changes with the creation of a working group to evaluate potential improvements to the vocational rehabilitation system. This approach maintains current program stability while laying groundwork for future efficiency and effectiveness enhancements.
  • Polyfluoroalkyl Substances (PFAS): The House Agriculture Committee reviewed H.911, a bill that would prohibit pesticides and pesticide packaging containing PFAS. While specific language is still under development, potential for broader PFAS definitions could increase compliance costs for manufacturers whose processes may already be subject to regulation.
  • Wetlands: The House Environment Committee reviewed a proposed amendment to S.223 focused on targeted wetlands permitting reform to support housing development in designated growth areas. While the amendment faces strong headwinds, continued streamlining of regulatory processes remains vital for housing growth and affordability.
  • Building Energy Code: The Senate Natural Resources and Energy Committee began review of H.718, hearing concerns related to funding limitations, enforcement authority, and the need for expanded workforce training resources. Continued focus on supporting the building community will be necessary as discussions continue.
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, considering exemptions for noncommercial sellers and adding a potential sunset clause to ensure the bill is targeted, effective and can be reevaluated after implementation.
  • Sister State: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.674, maintaining quarterly meetings of the sister state council, leveraging existing state relationships, and considering U.S. and state sanctions lists in the vetting process.
  • Public Safety: The Senate advanced H.410, a bill that redefines recidivism to support more efficient judicial processes and quicker access to services. The bill now moves to the Governor’s Desk for consideration.

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Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Issue Updates from the State House | Week of April 6, 2026

Issue Updates from the State House

Week of April 6, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Tax Conformity: The Senate Finance Committee reviewed H.933, a bill making several targeted changes to the state’s tax code. As this bill progresses, the creation of a competitive, predictive tax environment would be ideal for Vermont’s businesses.
  • Commercial Property Assessed Clean Energy (C-PACE): The House Energy and Digital Infrastructure Committee advanced S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings. The bill’s language now moves to the House Commerce Committee for inclusion in S.327.
  • Economic Development: The House Commerce and Economic Development Committee reviewed omnibus economic development bill S.327. The committee is considering an amendment that would increase accessibility to funding available through the Rural Industrial Development Program, to help rural business relocation and expansion.
  • Vocational Rehabilitation: The House Commerce and Economic Development Committee continued review of S.173, a bill proposing modifications to Vermont’s vocations rehabilitation program Maintaining effective prescreening and improving the efficiency of rehabilitation plans must remain key priorities as discussions continue.
  • Housing: The House General and Housing Committee revised S.328, taking language from House and Senate housing bills and beginning the process of merging the two bills. While the bill advances key housing initiatives, provisions related to multiunit development have been separated for further consideration in the House Environment Committee and still face additional challenges.
  • Nickel For Your Thoughts: The House Commerce and Economic Development Committee continued testimony on H.837, a bill allowing businesses to voluntarily round cash transactions to the nearest five cents in response to reduced penny circulation. Final details around consumer notice are still being refined by the Committee.
  • Franchise Agreements: The Senate advanced H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. The bill now moves to the Governor’s desk.
  • Career Technical Education (CTE): The House Commerce and Economic Development Committee considered a new draft of CTE bill S.313 that would require acceptance of CTE credits toward graduation and begin updating the state’s CTE system. While not a complete solution to the challenges facing CTE centers, the proposal represents a strong improvement toward aligning workforce training with industry needs.
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued to review H.512. Ongoing discussions focused on refining the resale cap structure, addressing potential loopholes, and ensuring enforceability.
  • Association Health Plans: The Senate Finance Committee continued testimony on H.585, which could allow Association Health Plans beginning in 2028 and expand coverage options for businesses facing high costs. Testimony has shown strong support for AHPs, while broader discussions continue to shape the debate.
  • Primary Care: The House Health Care Committee reviewed S.197 which aims to increase use of primary care to reduce strain on hospital systems.
  • Sister State: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.674, a bill establishing a formal process for creating additional Vermont Sister State relationships to strengthen international engagement. Discussion emphasized the importance of a centralized vetting process and prioritizing mutually beneficial partnerships.
  • Wastewater: The House Environment Committee reviewed S.212, which streamlines wastewater permitting and improves coordination between municipal and state systems to reduce timelines and support development efficiency.
  • Bottle Bill: The Senate Natural Resources Committee continued testimony on H.915, a bill that establishing an extended producer responsibility program that would significantly increase obligations for beverage container manufacturers, distributors, and retailers.

CONNECT WITH OUR TEAM

Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Issue Updates from the State House | Week of March 30, 2026

Issue Updates from the State House

Week of March 30, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community. 

  • Cash Transaction Rounding: The Vermont Chamber testified in the House Commerce and Economic Development Committee on H.837, a bill that would allow businesses to voluntarily round cash transactions to the nearest five cents with appropriate consumer notice recognizing the challenges that will inevitably arise with the phaseout of the penny.
  • Extreme Temperatures: Following extensive testimony, the House General and Housing Committee paused discussion on the “extreme temperature” workplace proposal in S.230 to engage further with VOSHA. While temporarily slowed, the proposal is expected to resurface soon.
  • Commercial Property Assessed Clean Energy (C-PACE): The Vermont Chamber testified in the House Energy and Digital Infrastructure Committee on S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings, allowing businesses to finance efficiency, renewable, and resilience improvements through long-term, fixed-rate property assessments.
  • Housing: The House General and Housing Committee reviewed S.328, the Senate-passed housing bill. With overlap between S.328 and the House-passed H.775, the Committee now must consider which parts of each bill will result in the most efficient path towards housing growth.
  • Association Health Plans: The Senate Finance Committee began testimony on H.585, which would allow Association Health Plans in 2028 contingent on federal changes and initiate a study on impacts to Qualified Health Plans. These plans could expand options for businesses facing high costs, with further evaluation underway.
  • Act 250: The House Environment Committee began testimony on S.325, a bill that would make amendments to 2024’s Act 181 including moving interim exemptions to 2030, delaying the road rule until 2030, and delaying the implementation of tier 3 until July 2028.
  • Reference Based Pricing: S.190, a bill continuing momentum toward health care cost containment efforts by increasing price transparency and moving the Green Mountain Care Board closer to implementation of reference-based pricing, has advanced to the House Health Care Committee.
  • Budget: The Senate Appropriations Committee reviewed H.951, the House-passed FY27 budget totaling $9.3 billion. Following a divided House vote, the bill reflects a mix of targeted investments and ongoing funding gaps, underscoring the need for efficient, high-impact spending to support affordability and long-term economic stability..
  • Primary Care: The House Health Care Committee reviewed S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. Discussions included spending targets, opportunities for regional collaboration to improve efficiency, and potential payment reform through alternative models to support long-term affordability.
  • Health Care Affordability: The House Health Care Committee reviewed H.433, a bill that would move the state closer to a universal primary care system at the expense of an additional payroll or income tax, shifting, rather than reducing the cost of health care in Vermont.
  • Alcohol: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.921, a bill expanding alcohol service options, including larger serving sizes, more flexible locations, shorter notice periods for tasting permits, and increased direct distribution opportunities. While the proposed changes could enhance industry competitiveness, the Committee raised concerns regarding implementation and potential market impacts.
  • Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The Committee continues to evaluate whether a resale price cap is necessary and enforceable.
  • Education: The House Education Committee advanced its education reform bill on a partisan vote of 7-4. The bill diverts from last year’s Act 73, instead taking voluntary approach that expands the use of Cooperative Educations Service Areas rather than reducing supervisory districts, and targets efficiencies by encouraging reduced duplicative services without mandating consolidation. The strategy ultimately relies on hope that voluntary alignment will deliver meaningful results.

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Megan Sullivan

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