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.
