Modernizing Act 250 and Land Use Planning Archives

Issue Updates from the State House | Week of February 3, 2026

February 6, 2026February 3, 2026

Issue Updates from the State House

Week of February 3, 2026

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

Redistricting Map: After a year of contentious debate over the future of Vermont’s education system, the House Education Committee chair released a proposed redistricting map to move the conversation from theory to a more tangible framework for discussion. Framed explicitly as a starting point, the map sets the stage for stakeholder feedback and upcoming testimony, with key questions around governance, cost pressures, local control, and implementation.
Omnibus Housing Bill: The Senate Economic Development, Housing, and General Affairs committee continued review of S.328, working to ensure that town housing goals continue to integrate with statewide development targets and continuing to develop an off-site housing construction pilot program that could make it easier to create new housing statewide
Rural Housing: The House General and Housing Committee continued work on H.775, a multifaceted housing production bill focused on incentivizing small-scale rural development by unlocking new financing tools and reducing barriers for small developers. Committee discussion explored the proposal of an off-site housing construction accelerator pilot program that could lead to more efficient, timely, and consistent home creation.
Land Use Permitting: The House Environment committee introduced H.805, a bill that would allow Agency of Natural Resources-certified engineers to help streamline wetland and stormwater permitting for projects with minor impacts. Modeled after existing wastewater exemptions, the proposal could improve permitting efficiency.
Omnibus Alcohol Bill: The House Government Operations and Military Affairs committee combined four alcohol-related bills into a single omnibus alcohol bill that would improve operations for alcohol suppliers by increasing distribution allowances, allowing services in farmers markets, increasing consumption permitted in tasting rooms and retail shops, and improving permitting and hours of service for off-site tasting events.
Vermont Employment Growth Initiative (VEGI): The Senate Finance and Senate Economic Development, Housing, and General Affairs committees continued review of S.225 and S.327, which would remove the sunset of the VEGI program and preserve access to this key economic development tool.
Outdoor Recreation Day: On Outdoor Recreation Day, committees heard testimony on the outdoor recreation industry’s $2.1 billion contribution to Vermont’s GDP and its support of over 16,000 jobs.
Health Care: The House Health Care committee continued testimony on H.585, a bill proposing broad reforms to health insurance structures, including the permitting of association health care plans to provide additional choices for employers and self-employed Vermonters. Continued introduction of tools like these remains critical to stabilizing Vermont’s volatile insurance markets and improving affordability for ratepayers.
Prescription Drugs: The House Health Care committee received updates on legislation passed last session to cap prices on certain prescription drugs to make health care more affordable. The committee also discussed strategies to pool purchasing power and reduce drug costs to help curb systemically high healthcare expenses.
Budget Adjustment: The Senate Appropriations committee reviewed H.790, the House-passed budget adjustment bill, which makes midyear changes to the FY ’26 state budget. The committee concurred with the House proposal to carry surplus funds into the FY ’27 budget for potential use in a property tax buydown once the broader budget outlook takes shape.
Education Spending: The Senate Finance committee continued work on S.220, a bill that would align education spending growth with inflation while implementation of education reform takes shape. While recent compromises in the bill allow for more flexibility in extreme circumstances, it remains unclear if the bill will move beyond this committee as debate continues.
Rodenticides: The House Agriculture, Food Resiliency, and Forestry committee reviewed H.758, a bill that would completely ban the use of rodenticides outside lengthy and narrow waiver procedures for applicators in cases of agricultural, environmental, or public health emergencies. Such a ban could significantly affect facilities management, food safety, and operational costs for businesses across sectors, particularly those in food service, hospitality, and manufacturing.
Tax Classifications: The House Ways and Means committee continued work on the expansion of property tax classifications from two to three, determining property taxation will be based on percentage of property use within in each category. Significant challenges remain, including the verification of property use attestations, administration and collection of forms, and the cost of implementation.
Leave Policy (H.459): House General and Housing Committee discussed a policy proposal to stop workers’ compensation leave from running concurrently with Parental and Family Leave. Committee members raised concerns about employer costs, particularly for smaller or benefit-rich employers, and questioned whether the bill was overly burdensome. The committee agreed to have the bill drafted with an employer size threshold for further discussion.
Flexible Working Arrangements: The Vermont Chamber of Commerce testified before the Senate Economic Development, Housing, and General Affairs committee on S.230, a bill that would shift the onus to employers to prove that flexible working arrangements are unworkable. Vermont has one of the most extensive flexible working arrangement laws in the country and this is a solution in search of a problem.
Non-Compete: The House Commerce and Economic Development committee continued work on H.205, a bill that would broadly ban non-competes and restricts an employer’s use of retention incentive agreements. The bill continues to be shaped into a more workable proposal.
Franchises: The House Commerce and Economic Development committee continued work on H.733, a bill that would significantly expand state regulation of business-to-business franchise relationships by limiting termination and renewal rights and imposing mandatory inventory repurchase and transfer requirements. The proposal raises serious concerns about government intrusion into private contracts, added compliance costs, and potential impacts on franchise investment and expansion in Vermont.
Mediators: The House General and Housing committees advanced H.548, a bill that would create a new state position offering mediation services to both public and private sector businesses and their employees’ collective bargaining units. The bill now moves to the House Floor for consideration
Career Technical Education (CTE): The Senate Education committee heard testimony on risks of applying broad reform to a diverse system of CTE centers while also considering the complexities of creating real solutions to the problems facing CTE centers. Ensuring CTE centers are properly funded, accessible to students, and integrated with broader education reform remains vital for developing Vermont’s future workforce.
Event Ticketing: The House Commerce and Economic Development committee continued testimony on H.512, a bill aimed at curbing resale of event tickets to improve event attendance and strengthen protections for venues using online ticketing platforms. Questions remain around potential impacts on face-value reselling platforms and possible exceptions for venue-reseller partnerships
Purchase and Use: The House Ways and Means Committee reviewed the Governor’s proposal to shift the remaining one-third of vehicle purchase and use tax revenue from the Education Fund to the Transportation Fund over the next three years. This transition is important to meet federal match and road maintenance requirements.
Meals and Rooms: The Senate Finance Committee reviewed S.286, a bill proposing a 2 percent increase to the rooms and meals tax and further raising costs for businesses in the visitor economy. During review, the committee chair emphasized that significant testimony from impacted industries will be needed.

February 3, 2026

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

January 30, 2026

Issue Updates from the State House

Week of January 27, 2026

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

Omnibus Housing Bill Advances: The Senate Economic Development Committee advanced a comprehensive housing bill that takes important steps to increase housing supply by strengthening municipal housing planning requirements and modernizing zoning to allow more duplexes and small multi-unit homes where infrastructure exists. As the bill moves forward, the Chamber will focus on ensuring that new labor incentives, rent regulations, and added requirements do not unintentionally drive-up construction costs or slow the pace of housing production needed for Vermont’s workforce.
Rural Housing: The House General and Housing Committee reviewed H.775, a multifaceted housing production bill focused on incentivizing small-scale rural development by unlocking new financing tools and reducing barriers for small developers. Committee discussion explored governance and financing mechanics, accessibility considerations, and how these tools could support housing production across rural communities.
Recycling and Material Innovation Ban (S.247): The Senate Natural Resources and Energy Committee reviewed provisions of S.247 that would prohibit advanced recycling and chemical conversion technologies, effectively closing the door on emerging recycling innovation and related investment in Vermont. This type of blanket ban sends an anti-business signal that puts Vermont out of step with states pursuing circular economy solutions and modern waste management strategies.
Health Care Supply Impacts (S.247): Separate sections of S.247 also include restrictions on materials used in medical tubing and solution containers that could increase costs and limit supply options for health care providers. These changes risk adding pressure to an already strained health care system, with downstream cost impacts for employers and patients.
Land Use and Housing: The Senate Natural Resources and Energy Committee held multiple hearings this week to understand the state of the housing discussion and its intersection with land use, including updates on mapping, Act 181, and the community housing investment program.
Budget Adjustment: The House advanced H.790, a bill making adjustments to the FY ’26 budget. While the Governor proposed using surplus funds to immediately buy down projected property tax increases, the House version would carry the funds into the FY ’27 budget for potential use in a buydown or for other priorities. The bill now moves to the Senate for consideration.
Yield Bill: The House Ways and Means Committee reviewed projected FY ’27 property tax rates but will wait to set rates until school budgets are finalized. With a funding gap exceeding $100 million, a combination of buydowns and rate increases is expected, directly impacting employers and affecting economic predictability as runaway costs continue.
Alcohol: House Government Operations committee took testimony on H.672, H.655, H.647, and a committee bill, a flight of alcohol-related legislation that would expand permissions for sale, total distribution, and number of establishments allowed in the alcoholic beverages industry. These changes could streamline the sale and distribution of alcohol for licensees.
District Consolidation: The House Education committee continued reviewing school district consolidation as a strategy to reduce education costs. Despite earlier legislative goals to adopt a new district map by the end of the month, delays indicate a continued lag in policy committees to adopt key cost-saving measures.
Mileage-Based User Fee: The Senate Transportation committee continued testimony on implementation of a mileage-based user fee for electric vehicles, putting forward a system that would charge EV owners based on odometer readings. While this change would help recoup some revenue for the flagging Transportation Fund, additional action will be needed to ensure Vermont’s roads remain adequately funded and maintained.
Dental Workforce Development: The House Government Operations and Military Affairs committee heard testimony on H.588, a bill that would create a temporary license for visiting dental students. This licensure update could help expand Vermont’s dental workforce by making it easier for students to practice, certify, and remain in the state.
Tax Classifications: The House Ways and Means committee continued work on the expansion of property tax classifications from two to three. Many challenges still need to be addressed, including the verification of property use attestation forms, administration and collection of forms, and the cost of implementation. Dwelling and employee housing definitions also remain in flux.
Career Technical Education (CTE): The Senate Economic Development, Housing, and General Affairs committee reviewed S.313, a bill outlining goals to align CTE with workforce needs, expand access, reduce barriers, and better integrate CTE courses with graduation requirements. While the bill marks a strong start to CTE reform discussions, continued focus is needed to ensure students have the opportunity build skills necessary to meet the needs of Vermont employers.
Event Ticketing: The House Commerce and Economic Development Committee reviewed an updated version of H.512, a bill aimed at curbing the resale of event tickets. If advanced, the bill could improve event attendance and strengthen protections for venues using online ticketing platforms.
Energy Codes: The House Energy and Digital Infrastructure Committee continued testimony on H.718, a bill that would push enforcement of existing residential and commercial building energy codes, require new disclosures and training for contractors, and allow municipalities to enforce energy codes alongside the state. If advanced, this bill could add regulatory layers and administrative complexity, a move that directly conflicts with the urgent housing crisis.
Flexible Working Arrangements: The House General and Housing Committee introduced H.726, a bill that would require employers to grant employee requests for flexible working arrangements, shifting the onus to businesses to prove these arrangements would not work.
Non-Compete: The House Commerce and Economic Development Committee took up testimony on H.205, a bill that would broadly ban non-competes and restricts an employer’s use of retention incentive agreements. While some improvements have been made as a result of the Non-Compete Agreements Study Committee report released this past fall, additional changes are needed to make the bill balanced and workable.
Franchise Agreements: The House Commerce and Economic Development Committee reviewed H.733, a bill that would significantly expand state regulation of business-to-business franchise relationships by limiting termination and renewal rights and imposing mandatory inventory repurchase and transfer requirements. The proposal raises serious concerns about government intrusion into private contracts, added compliance costs, and potential impacts on franchise investment and expansion in Vermont.

January 30, 2026

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

January 23, 2026

Issue Updates from the State House

Week of January 20, 2026

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

Workforce Strategy: The House Commerce and Economic Development committee heard testimony from the Office of Workforce Strategy and Development on efforts to support business expansion, increase retention of college graduates, and grow Vermont’s workforce throughout sectors struggling to recruit. Building upon this work remains critical to addressing improving affordability and ensuring that employers have the workforce needed to remain competitive.

Housing Development: The Vermont Chamber testified before the Senate Economic Development, Housing, and General Affairs committee, advocating practical housing policies that reduce regulatory burdens and streamline development. Ensuring the legislature continues its focus on tackling Vermont’s housing shortage remains critical to supporting workforce recruitment, business growth, and long-term economic competitiveness

Drifting Priorities: The House Commerce and Economic Development Committee introduced nine new bills this week, many centered on data privacy regulations. As businesses face mounting challenges, it is critical that the committees prioritize proposals that aim to grow economic development and workforce opportunities to support Vermont’s long-term affordability and competitiveness.

Bottle Bill: The House Environment Committee reviewed a bill that would rewrite the state’s beverage container redemption law, setting aspirational targets for redemption rates. The bill also includes potential increased fees for manufacturers to support the expanded system.

Workforce Training: The Senate Education Committee heard testimony from the Vermont Student Assistance Corporation on workforce training programs available to support employee development. These programs offer businesses valuable tools to upskill existing workers or hire job-ready talent.

Flexible Working Arrangements: The Senate Economic Development, Housing, and General Affairs committee reviewed S.230, a bill that would require employers to grant employee requests for flexible working arrangements, shifting the onus to businesses to prove these arrangements would not work.

Career Technical Education (CTE): The House Commerce and Economic Development, House Education, and Senate Economic Development, Housing, and General Affairs committees heard testimony on the Administration’s proposal to consolidate CTE leadership under the Agency of Education. The practicality and effectiveness of shifting oversight of this vital system to an agency already burdened by broader education reform efforts will need significant analysis if this proposal moves forward.

Miscellaneous Tax Policy: The House Ways and Means Committee reviewed a miscellaneous tax bill that would make technical changes to the Vermont tax code, including repealing the denial of other state tax credits(OSCR) for S Corporations, aligning them with other passthrough entities. This small shift could simplify tax procedures and make Vermont more hospitable to S Corporations.

Education: The Senate Finance Committee reviewed education reform and funding discussions, hearing a report from the school redistricting task force, which fell short of making required recommendations on district consolidation. With a projected average 12 percent property tax increase looming, debates continue over potential one-time buy-downs. Difficult decisions must be made to rein in education spending and to improve system efficiency.

Energy Code: The House Energy and Digital Infrastructure Committee reviewed H.718, a bill that would push enforcement of existing residential and commercial building energy codes, require new disclosures and training for contractors, and allow municipalities to enforce energy codes alongside the state. If advanced, this bill could add regulatory layers and administrative complexity, a move that directly conflicts with the urgent housing crisis.

Purchase and Use Tax: Following the Governor’s call for a gradual restoration of purchase and use tax revenue to the Transportation Fund, the House Ways and Means Committee briefly introduced H.643, a bill to fully restore that revenue immediately. This move would allow Vermont to continue to meet federal match requirements and maintain $163 million in funding. Urgent action remains essential to ensure the stability and long-term maintenance of the state’s road infrastructure.

Commercial Property Assessed Clean Energy Projects (C-PACE): The Senate Natural Resources Committee continued testimony on S.138, a bill proposing to expand the PACE program to include commercial and industrial buildings. The expansion would allow business owners to finance energy improvements and repay the cost over time through a special assessment on its property tax bill.

Wastewater: The Senate Natural Resources committee reviewed S.212, a bill aimed at streamlining the wastewater connections permitting process and enhancing coordination between municipal and state-level permitting systems. This measure would help reduce timelines and increase the efficiency of new development projects.

Corporate Tax: The House Ways and Means committee continued testimony on impacts of selective decoupling from federal tax code changes, which would raise the cost of innovation, increase tax code complexity, and penalize firms investing in productivity and higher-wage jobs. In a state with a shrinking workforce, productivity-led growth is essential, especially as Vermont already ranks near the bottom nationally in business formation, investment momentum, and economic growth.

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Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

March 21, 2025

Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

With crossover complete, the Vermont Chamber advocacy team provides a comprehensive status update on Vermont’s most pressing affordability issues—education and property taxes, housing, healthcare, and business cost and regulation. Early measures in education and property taxes show promise in easing financial pressures, while proposed reforms in housing and healthcare remain under review amid evolving priorities. Key issues are summarized below.

Education Finance and Delivery

Following an average property tax increase of 14% last year, Vermont’s education finance and delivery system has reached a critical inflection point. With a clear focus on progressivity, transparency, and local control, the Legislature is examining the Administration’s proposals, which aim to address nearly every aspect of the current education finance framework—from how property tax credits are calculated to new measures designed to reduce disparities among school districts. However, significant questions remain regarding the potential for cost containment and the methodologies that will be employed to achieve it.

Yield Bill Passes Ways and Means: Curbing Property Tax Hikes: The House Ways and Means Committee passed the yield bill (9-2-0), proposing a uniform change to both non-homestead and homestead property tax rates for the upcoming fiscal year. The bill uses the one-time $77.2 million general fund transfer proposed by the Administration to buy down the property tax rate to an average increase of 1.1% versus the 5.9% increase that would have been realized without the transfer.
Education Reform Gets More Time: Due to the complexity of education reform—covering proposed changes to district sizes, funding, governance of Centers for Technical Education (CTE), prekindergarten, and a potential shift to a foundation formula—lawmakers are expected to take additional time beyond the standard crossover deadline. These decisions will ultimately determine whether cost containment can be achieved this session.

Housing

The continued lack of affordable housing is making living in Vermont more challenging for workers and families. Thoughtful reforms—such as streamlining permitting, encouraging higher-density and mixed-use developments, and revising financing mechanisms—are needed to help stabilize prices, support community resilience, and increase housing output.

Housing-Focused Infrastructure Financing Gains Momentum: Public infrastructure remains a major barrier to housing development. A housing-focused version of the long-proposed project-based Tax Increment Financing (TIF) program has gained momentum in the Senate, alongside a bond bank program designed to extend and enhance water and sewer service capacity for housing in municipalities.
Middle Income Programs Get Policy Approval; Budget Approval Pending: Programs designed to bridge the financing gap for housing developers or homebuyers have received support in policy committees, although the final budget for these initiatives has yet to be determined.
Act 250 Appeals Study Expedited: The timeline for a study on Act 250 appeals was expedited to allow the Legislature to develop policy proposals in time for the next session.

Healthcare

Commercial healthcare premiums have increased by double digits over the past three years while healthcare providers continue to face staffing and funding challenges in delivering the access to care communities need; 45% of respondents to the Vermont Chamber’s Business Climate Survey have adjusted their benefits in response to rising costs—with smaller businesses feeling the impact the most.

Reference-Based Pricing: Reforms Under Consideration to Curb Costs: In efforts to control costs, the Senate is moving forward with a proposal to implement reference-based pricing (RBP) before phasing in global hospital budgets.
New Law Unmerges Markets, Double-Digit Premium Increases Likely: In a swift legislative move, Vermont’s Legislature permanently unmerged the individual and group healthcare markets—a measure signed into law by Governor Scott—to shield small businesses from the higher costs of the individual market. However, the path to addressing the underlying cost drivers remains unclear and another year of double-digit increases may be unavoidable.
Workforce and Demographic Challenges: Further Action Needed: While current programs remain essential, little progress has been made in developing solutions to address the growing staffing shortages and demographic shifts impacting the healthcare system. Additional proactive measures are needed to ensure long-term workforce sustainability and maintain access to quality care.

Vermont’s Business Climate

The Vermont Chamber’s Business Climate Survey revealed a stark reality: respondents consistently voiced frustration with Vermont’s business environment, citing rising operational costs, regulatory hurdles, and a lack of workforce availability. The Vermont Chamber’s focus remains aligned with what Vermonters expressed at the polls in November—addressing affordability, spurring economic growth, and tackling Vermont’s toughest challenges head-on.

Military Retiree Pension Exemption Ignored: Despite strong bipartisan support in the House and Senate, legislation that would exempt the pensions of military retirees and survivor benefits from taxation has not been taken off the wall, leaving Vermont as the second least desirable state for military retirees. Vermont’s veteran population is declining at a rate of 2.7% annually, compared to a national decrease of 1.6%.
Balanced Comprehensive Data Privacy Gains Traction: A Comprehensive data privacy bill has received unanimous committee approval as it moves through the Senate. While compliance with this law will carry costs, the bill aligns with data privacy standards in other New England states and avoids exposing businesses to costly legal fees by excluding a private right of action.
Electricity Rate Increases: Two Senate committees have advanced a bill that is raising serious concerns due to its potential to increase electric costs for ratepayers.
New Business Taxes and Fees Off the Table for Now: While new and increased taxes were front of mind last year, tax increases targeting Vermont businesses have been off the table thus far.

Looking Ahead: What’s Next for Affordability Policy?

As the Legislature moves into the second half of the session, many of these affordability proposals will face significant hurdles in securing final approval and funding, and things can change dramatically as bills move from one chamber to the other. Proposals that seemed settled in one committee may be completely rewritten or stalled as they face new scrutiny and ideology. Several efforts to deliver some form of affordability remain in play, but competing priorities and budget constraints will shape what ultimately moves forward. Adding to the uncertainty, federal funding fluctuations could impact healthcare, infrastructure, and workforce programs, forcing lawmakers to make difficult trade-offs. The Vermont Chamber will remain engaged at every step, ensuring that affordability remains at the forefront as these critical policies take shape.

March 21, 2025

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Joint Legislative Hearing Sets Stage for Housing

January 31, 2025January 31, 2025

Joint Legislative Hearing Sets Stage for Comprehensive Housing Solutions

The Senate Economic Development, Housing, and General Affairs Committee and the House General and Housing Committee held a joint hearing to review the Administration’s omnibus housing bill—a collaborative effort demonstrating their commitment to addressing Vermont’s housing crisis this session. The bill includes funding for infrastructure, investments in housing development programs, reforms to housing appeals, and changes to last year’s Act 250 reforms.

Legislators were keenly interested in the presentation and engaged in dialogue as well as debate, particularly with proposed changes to last year’s Act 250 bill. As the bill’s process unfolds, hearing from the groups responsible for mapping and the new Land Use Development Board will be crucial to identifying necessary corrections. This will help ensure that the bill effectively incentivizes development, protects natural resources of statewide significance, and preserves opportunities for all Vermonters to have a voice in these decisions.

These committees are unlikely to be the only ones reviewing this presentation, as land use also falls under the jurisdiction of the House Environment and Senate Natural Resources and Environment Committees. With housing being critical to addressing Vermont’s workforce and demographic challenges, this collaborative approach will hopefully continue throughout the session.

January 31, 2025

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Landmark Act 250 Modernization Bill Becomes Law

June 18, 2024

Landmark Act 250 Modernization Bill Becomes Law

Lawmakers voted to override the Governor’s veto of H.687, marking the final passage of the historic compromise that has been a monumental undertaking for policymakers and stakeholders this session. The successful passage of the bill will immediately exempt the building of housing units across Vermont, which is a top priority for the Vermont business community. The Vermont Chamber has been engaged on this bill throughout the session to secure this crucial provision, among others.

There will be an opportunity to address the areas of concern that led to the Governor’s veto decision in the next biennium. In the meantime, the passage of this bill marks an important step forward to achieving common goals. Act 250 exemptions for housing will start immediately and a location-based jurisdiction approach will see full exemptions in smart growth areas soon. No single piece of legislation will absolve the housing crisis that has been generations in the making and more work needs to be done to find solutions that get at the root of the problem. The Vermont Chamber remains committed to working with legislators and the Governor’s administration in the years ahead on further policy solutions for Vermonters.

June 18, 2024

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Important Appeal Provisions Secured in Act 250 Modernization and Housing Bill

May 3, 2024

Important Appeal Provisions Secured in Act 250 Modernization and Housing Bill

Amid a lengthy debate and amendments, the Senate is poised to approve H.687, which will be another step towards codifying the historic agreement on location-based jurisdiction. The bill would then need to go back to the House to review changes. The bill removes barriers to residential development in smart growth areas with interim exemptions. Notably, the Vermont Chamber successfully advocated for Act 250 appeals to remain with the Environmental Court. In a compromise to secure this, the future of appeals would be studied, and a report would be due back to the legislature for further consideration in 2026.

Here is a breakdown of much of what the Senate version of the bill would do over the next 3 years:

Development Exemptions: Establishes exemptions for all development in Tier 1A up to 49 units of housing in mixed-use developments in Tier 1B. Interim exemptions include:

All housing within downtowns until July 1, 2028.
Up to 75 units in new town centers, growth centers, and neighborhood development areas until July 1, 2028.
Up to 50 units within ¼ mile of village centers with zoning and in urbanized areas of 50,000 people near transit routes until July 1, 2028.

Name Change and Authority Expansion: The Natural Resources Board becomes the Land Use Review Board (LURB), the five-member board will be appointed by the Governor and have the authority to hear appeals and review regional plans and maps.

Tier 1A Area Application Process: Municipalities can apply from 2026 or after regional plan approval, with LURB guidelines issued by 2026.

Review of Applications for Tier 1A: LURB to manage the workload of District Commissions. Leaves Act 250 permit appeals at the Environmental Division of the Superior Court and will further study the issue.

Act 250 Amendments: Definitions added for forest blocks and habitat connectors. Rules to be adopted for Act 250 in areas with highly sensitive natural resources administration and mapping.

Regional Planning Process: LURB to review future land use maps and Tier 1B designations. RPCs submit to LURB plans and maps which must comply with requirements. Village areas are given Tier 1B status unless the town requests not to have it.

Appeal Changes: The threshold for appeals increased from 10 to 25 people.

Taxation Adjustments: A new property transfer tax rate of 2.5% for residential properties that will not be used as a principal residence, are fit for habitation all year, and are not used for a long-term rental. A temporary education property tax exemption was introduced for flood-impacted communities.

Safety Guidance for Short-Term Rental (STR) Operators: The Division of Fire Safety provides health and safety rules guidance for STR platforms; operators are required to post guidance.

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Housing and Act 250: A Historic Compromise With a Poison Pill

April 19, 2024

Housing and Act 250: A Historic Compromise with a Poison Pill

The Senate Natural Resources and Energy Committee combined the Senate’s housing bill with the House’s Act 250 modernization bill, creating a 171-page omnibus bill. While much of the legislation incorporates a historic compromise on Act 250, a substantial poison pill remains. Appeals of Act 250 permits would move from the environmental courts to a newly established professional board. The Vermont Chamber is advocating against this transition. A legal appeal of a complicated development process requires a legal review in a court, not an informal review by a politically appointed quasi-judicial board that does not have legal expertise.

The Vermont Chamber has supported a compromise of establishing a working group to dig into underlying issues that result in Act 250 appeals leading to timely and expensive disputes and ultimately development delays and how best to address them. The Senate Economic Development, Housing, and General Affairs Committee has done a walk-through of the bill and is looking at opportunities to bolster parts of the bill that will address Vermont’s housing crisis. With only weeks remaining in the session, the bill still has several more hoops to jump through before reaching the Governor’s desk. As it currently stands, it is poised for a veto.

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Tourism Economy Day Brings Business and Policy Leaders Together at the State House

April 12, 2024April 12, 2024

Tourism Economy Day Brings Business and Policy Leaders Together at the State House

Over 100 tourism and hospitality industry leaders gathered at the State House on April 11 to engage with legislators and raise awareness of the collective contributions of these industries to the Vermont economy. “Tourism Economy Day,” convened by the Vermont Chamber of Commerce and Ski Vermont, brought businesses together to advocate for a thriving Vermont visitor economy.

The Vermont visitor economy has a $3 billion annual economic impact, supports 35,000 jobs, and represents 11.5% of our workforce. Businesses, legislative leaders, and Administration officials collaborated for a day of advocacy that elevated the collective contributions of the visitor economy to Vermont. A coffee hour with Governor Scott, a joint hearing with the House Commerce and Economic Development Committee and the Senate Economic Development, Housing, and General Affairs Committee, a Resolution reading on the floor of the House of Representatives, an evening food and beverage tasting reception with the Vermont Specialty Food Association all took place throughout the day.

Rep. Stephanie Zak Jerome (Rutland-9), a stalwart supporter of the tourism industry, offered a House Resolution, H.C.R 211. “The Vermont visitor economy remains a vital engine powering our state and bolstering our businesses and local economy. This annual event provides an opportunity for industry leaders from across Vermont to testify on the importance of their work, speak directly to legislators, and elevate the importance of the tourism and hospitality sectors in the State House,” commented Rep. Jerome.

“The Vermont Chamber has a proven track record of bringing businesses together with a shared purpose to work together to build a stronger Vermont economy,” said Amy Spear Vice President of Tourism for the Vermont Chamber of Commerce. “This year’s event focused on advocating for strategic initiatives to bolster business success and contribute to the vitality and resiliency of our state: workforce development, economic recovery and resiliency, and workforce housing.”

“Outdoor recreation relies on sustaining a healthy and thriving environment and is vital to Vermont’s $1.9 billion outdoor recreation tourism economy,” says Ski Vermont President Molly Mahar. “Vermont’s ski areas understand the importance of sustainable stewardship for tourism and its economic benefit to their local communities and across the state. For decades they have worked to support and enhance the state’s capacity for outdoor recreation while protecting the environment and reducing carbon emissions. They maintain that focus so current and future generations can continue to enjoy all that Vermont has to offer.”

Business leaders centered their advocacy on three key pillars of opportunity: workforce development investments in training and education to meet industry demands, economic recovery and resiliency programs to address and anticipate economic injuries from disasters, and workforce housing solutions to meet future needs.

“Friends, mentors, and colleagues have had to shutter their businesses in the wake of recent catastrophes. It’s heartbreaking,” stated Stefano Coppola, Chef and Owner of Morse Block Deli & Taps. “While the State’s work to help businesses through the pandemic, and later the flood, was commendable, there is still much progress to be made. We need additional support so that when something like this happens again, we are more prepared to help the hospitality industry.”

“By investing in education and workforce development, we can cultivate future leaders and ensure the sustainability of our vibrant tourism economy,” stated Hans van Wees, General Manager of Hotel Vermont and Co-Chair of the Vermont Lodging Association. “Our goal is to empower high school graduates, career changers, and current industry professionals through targeted programs that bridge the gap between education and practical experience.”

Additional business and policy leaders that testified were: Charles Tino Rutanhira of the Vermont Professionals of Color Network, Jay Wahl of The Flynn, Emily Schriebl Scott of the Weston Theater Company, Andrew Stenger of Jay Peak Resort, Bob Grim of Foam Brewers, Hans van Wees of Hotel Vermont and the Vermont Lodging Association, and Heather Pelham, Commissioner of the Department of Tourism & Marketing.

April 12, 2024

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Act 250 Modernization Bill Passes House

March 29, 2024

Act 250 Modernization Bill Passes House

H.687 was the subject of lengthy, and at times fiery, House floor sessions this week. The bill establishes a plan and timeline to modernize Act 250 with a tiered and location-based jurisdiction, including exemptions in smart growth areas. The proposed changes for Vermont land use would take place over the coming years to allow for considerable public outreach and input. In total, there were 11 amendments to the bill with all but one passing. This included an amendment to extend Act 250 housing exemptions passed last year in the HOME Act. The bill was ultimately passed by the House on a split voice vote, sending a message to the Senate that further changes will need to be made if the bill is to garner enough widespread support to withstand a potential veto.

The bill will now go to the Senate, where the Natural Resources Committee has been reviewing S.311, the Senate’s housing and Act 250 omnibus bill, in anticipation of receiving H.687. The Vermont Chamber testified before the committee this week in favor of the approach to Act 250 appeals that S.311 makes, keeping appeals to Act 250 decisions in the court with increased support. The committee is likely to make H.687 the final vessel for Act 250 modernization this session.

March 29, 2024

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