There are several hot topics in the Vermont legislature this spring. Below is the newsletter from the Vermont Dairy Producers Alliance, written by Shouldice and Associates, to give an update on happenings in Montpelier.
Update from Week 15 of the Vermont Legislative Session – April 19, 2024
We end the week with yet another, not so subtle message from our fearless leader. Governor Scott once again, in his calm demeanor, lashed out with continued concern at the Vermont Legislature. The long-awaited Yield bill, better known as the property tax bill, made its debut after being voted out of House Ways & Means after weeks of often dramatic testimony and committee discussions. The outlook of what is taking place under the golden dome is bleak at best. Below is the statement Scott released on Thursday. Read it and weep everyone, read it and weep…
“Vermonters already face a daunting tax burden. Too many are struggling to get by, and simply cannot afford to see their costs continue to go up. Vermonters have also made themselves abundantly clear: taxes are crushing them.
Months ago, when the December 1 property tax projection letter came out, my team warned about the consequences of such a historic tax increase. Unfortunately, many in the Legislature brushed it off and downplayed it. For years, I’ve voiced my concerns about the sustainability of our education system and have offered ideas for the Legislature to consider that would contain costs. They have rejected those ideas, time and time again – without following through on solutions of their own.
“Today, it is clear the House’s only plan is to accept an unbearable property tax increase, without any cost containment, while adding other taxes and studying the problem for a couple years. That means we’ll be in this same mess for years to come. I cannot accept this, I know Vermonters won’t, and I hope the Senate doesn’t either.”
The Yield bill passed by the House this week had onlookers dazed and confused that their property tax bills are still pegged to go up 15-18% this year.
An act relating to homestead property tax yields, non-homestead rates, and policy changes to education finance and taxation, H.887, a bill that passed out of committee 8-4 and has been dubbed as the non-starter for Republicans and Governor Phil Scott because it won’t address the $200 million shortfall in the education fund, increases taxes and does nothing for cost containment. Next year the fund could be in even worse shape due to the delay in substantive changes to how education is paid for.
Here is what the Legislature is looking at:
The bill sets the property dollar and income dollar equivalent yields for the purpose of setting homestead tax rates and establishes the non-homestead property tax rate. This will result in an average increase of approximately 14.97% for homestead property tax bills and income education tax bills, and an average increase of 17.99% for non-homestead property tax bills.
ï The bill expands revenues to the Education Fund by repealing the sales tax exemption for prewritten software accessed remotely. This change is estimated to generate $20.4 million in additional revenue for the Education Fund in fiscal year 2025.
ï The bill imposes a 1.5% surcharge on short-term rentals, with all revenues dedicated to the Education Fund. This surcharge is estimated to generate $6.5 million for the Education Fund in fiscal year 2025.
ï The bill establishes the "Commission on the Future of Public Education in Vermont," the "Educational Opportunity Payment Task Force," and the "Education Fund Advisory Committee" to study and make recommendations for Vermont's public education system. These commissions and committees will receive funding from the General Fund.
ï The bill includes provisions regarding the calculation of excess education spending and the application of the local common level of appraisal (CLA). These provisions may impact property tax rates and district budgeting, but the exact fiscal impact is uncertain.
The estimated additional revenue from repealing the sales tax exemption for prewritten software accessed remotely is $20.4 million in fiscal year 2025 and $22.3 million annualized, beginning in fiscal year 2026. The current projected shortfall in the education fund is $200 million.
Legislative fatigue is firmly settling in. The Democratic Caucus was given a bit of a hand slap for not attending committee hearings and floor debates. This is creating problems with gathering a quorum to conduct business and amend legislation. The pressure is building with very few legislative days to finish work on bills that are poised to pass this session. Onlookers have started to tally the cumulative effect of program, tax, and spending proposals. Two proposals, education spending and increases in health insurance premiums alone, are projected to cost Vermonters over $300 million.
On Thursday night, Legislators danced off to the annual “cabaret”, where Legislators put together silly skits about proposed legislation and members of the opposite Chamber. This event is closed to the public and lobby core, it’s assumed lobbyists are the brunt of the jokes.
Leadership has been very clear that they are not just “eyeing” May 10th for adjournment but are very firm that adjournment will happen and likely turn into a late-night adjournment. To make this happen, the legislative committees will work on Monday’s as needed and a Saturday or two, no doubt begrudgingly. Maybe they should install NoDoz dispensing machines along with a few cases of Red Bull and an espresso machine?
Monitor - S 102 - An Act Relating To Expanding Employment Protections And Collective Bargaining Rights
Read first time and referred to the Committee on General and Housing (04/05/23)
This bill proposes to establish a good cause standard for termination of employment, require employers to provide severance pay to terminated employees, and permit employees or representative organizations to bring an enforcement action on behalf of the State for violations of the good cause termination requirement. This bill also proposes to prohibit employers from taking adverse employment actions against an employee in relation to the employee's exercise of free speech rights. This bill also proposes to permit agricultural and domestic workers to collectively bargain and to permit employees to elect a collective bargaining representative through card check elections.
House General & Housing Committee heard testimony from Chambers of Commerce, manufacturing sector, labor and Rural Vermont. However other groups focused on animal welfare in the even farm workers strike. This would not only creates a potential situation of animals not being properly cared for, milk not being shipped and could disrupt the supple chain.
With push back from many groups about the unintended consequences the committee will likely continue testimony next week.
Rural Vermont is supportive of S.102, this is the only agriculture group that has testified. The agricultural workers exemption language was struck in the Senate. This means that under the bill agricultural workers would have the right to protections under collective bargaining. This has been passed by; New York, New Jersey, Oregon, Minnesota, Hawaii, Kentucky, Louisiana, Massachusetts, Wisconsin, Kansas, Arizona, Colorado, California, Washington, and Nebraska providing some rights for collective bargaining.
S 213 - An Act Relating To The Regulation Of Wetlands, River Corridor Development, And Dam Safety
NEW STATUS: Referred to Committee on Ways and Means per Rule 35(a) Notice Calendar: Favorable with amendment (04/19/24)
This bill proposes to amend provisions related to wetlands, river corridor development, and dam safety. The bill would establish as State policy that wetlands shall be regulated and managed to produce a net gain of wetlands acreage. The Secretary of Natural Resources would be required to amend wetlands rules to incorporate the net gain policy. The bill would require the Vermont Significant Wetlands Inventory maps to be updated and revised annually. The bill would also require amendment to the existing Vermont Flood Hazard Area and River Corridor Rule to adopt requirements for issuing and enforcing permits for development within a flood hazard area or a mapped river corridor in the State. In addition, the bill would amend the Unsafe Dam Revolving Fund to be the Dam Safety Revolving Fund to provide loans for emergency and nonemergency funding of dam repair. The bill also provides that the owner of a dam or the owner of land on which a dam is located shall be held strictly, jointly, and severally liable for harm caused by the breach of a dam, provided that the dam has been classified as a significant or high hazard potential dam or the person who owns legal title to a dam or the owner of land on which a dam is located is not in full compliance with dam safety rules.
The amendment by House committee on Environment & Energy, proposes several changes related to the regulation of wetlands, river corridor development, and dam safety. Here's a summary:
1. Consultation Requirement: Requires the Department of Environmental Conservation to consult with the Agency of Commerce and Community Development and regional planning commissions before making amendments to the River Corridor Base Map.
2. Regulation of Development: Allows municipalities to regulate development in flood hazard areas, river corridors, and other hazard areas, with specific provisions related to accessory dwelling units and planting projects.
3. Municipal Regulation: Grants municipalities the authority to regulate land use for compliance with the National Flood Insurance Program and municipal ordinances related to flood hazard areas and river corridors.
4. Protection of River Corridors: Authorizes municipalities to adopt bylaws to protect river corridors and buffers, outlining specific objectives and regulations for development in these areas.
5. Wetlands Rulemaking: Requires the Commissioner of Environmental Conservation to review and potentially authorize certain activities within wetlands, including utility line relocation and temporary access for restoration projects.
6. Analysis of Green River Dam: Directs the Agency of Natural Resources to analyze the costs of the Green River Dam and submit the results to relevant legislative committees.
7. Report on Waiver of Permit Fees: Mandates reports on establishing criteria for waiving, reducing, or mitigating permit fees for low-income individuals or other criteria. Overall, the amendment aims to enhance regulations concerning wetlands, river corridors, and dam safety, while also addressing issues related to permit fees and effective dates.
S 301 - An Act Relating To Miscellaneous Agricultural Subjects
Read first time and referred to the Committee on Agriculture, Food Resiliency, and Forestry (04/04/24)
This bill proposes to make multiple miscellaneous changes to agricultural statutes. The bill would amend the requirements for the Vermont Seeding and Filter Strip Program. The bill also would amend the licensing requirements for agricultural warehouses. In addition, the bill would amend livestock dealer licensing requirements. The bill also amends eligibility requirements for financial assistance from the Vermont Agricultural Credit Corporation.
SUMMARY:
Agricultural Water Quality
ï Amends Vermont seeding and filter strip program, allowing the Secretary of Agriculture to develop a program compensating farmers for establishing and maintaining grassed waterways and filter strips on cropland.
Agricultural Warehouses
ï Amends licensing requirements for public warehouses storing farm products, including dairy, eggs, meat, poultry, and produce, and sets licensing fees.
Milk Handling
ï Amends definitions and licensing requirements for milk handlers, establishing fees based on the volume of milk or dairy products handled annually.
Public Warehouse Licensing
ï Establishes licensing requirements for various entities involved in meat, meat food products, or poultry products, including commercial processors and distributors.
Livestock Dealers
ï Amends definitions related to livestock dealing, clarifying exemptions and licensing requirements for livestock dealers, packers, and transporters.
Contagious Diseases and Animal Movement
ï Amends definitions related to contagious diseases and animal movement, outlining rules and regulations for disease control and eradication, including testing of captive deer.
Pesticides; Mosquito Control; Rodenticides
ï Amends rules related to mosquito control, grants, and pesticide use, including restrictions and approvals for rodenticides and larvicides. It mandates the Secretary to register second-generation anticoagulant rodenticides as restricted use pesticides if they are distributed or sold within the state
Vermont Agricultural Credit Program
ï Amends the creation and definitions of the Vermont Agricultural Credit Program, providing alternative credit sources for farmers and forest product businesses.
Loan Eligibility Standards
ï Amends loan eligibility standards for farmers, forest product businesses, and other entities, outlining residency and ownership requirements.
The House Agriculture Committee began taking testimony on sections of the bill this week. We believe this too will become a "Christmas tree" with added language. We will continue to monitor and this will be one of the last bills passed out of this committee.
H 877 - An Act Relating To Miscellaneous Agricultural Subjects
Read 1st time & referred to Committee on Agriculture (03/28/24)
This bill proposes to make multiple miscellaneous changes to agricultural statutes. The bill would amend eligibility requirements for the Farm Agronomic Practices Program. The bill would adopt additional national standards under the weights and measures standards. In addition, the bill would amend how training can be provided for certified pesticide applicators. The bill would also amend provisions related to mosquito control and provisions related to the regulation of fertilizer, limes, plant amendment, plant biostimulants, and soil amendments.
This bill is largely technical in nature, however, there is a change to the pesticide training and certification program in AAFM. The Agency wants to have the ability to contract with a third-party vendor to administer pesticide examinations through a remote program. The Agency may also charge an additional fee to applicants who prefer to utilize the electronic or alternate testing service for pesticide certification or licensing examinations. AAFM will still administer in person examinations that do not include an additional fee.
In addition, the bill as passed by the House would:
ï Expand eligibility requirements for the Farm Agronomic Practices Program to provide financial assistance to Vermont farms for implementing soil-based practices that enhance soil quality, nutrient retention, crop production, and reduce agricultural waste discharges.
ï Define terms related to livestock and poultry transportation and testing.
ï Adopt additional national weights and measures standards
ï Change regulation of fertilizer, limes, plant and soil amendments, and plant biostimulants
The Senate Committee on Agriculture has not started work on this yet, it will likely be the last bill the committee will pass out for the year. We expect this bill to have language added and become a "Christmas tree" once the committee begins their work.
H 81 - An Act Relating To Fair Repair Of Agricultural Equipment
Committee on Economic Development, Housing and General Affairs relieved; bill committed to Committee on Agriculture on motion of Senator Ram Hinsdale (02/09/24)
This bill proposes to ensure the fair repair of agricultural equipment.
Brian Carpenter from Champlain Valley Equipment testified again this week where he was able to walk through changes, the committee was amenable to most of these. We look forward to seeing a new version of the bill early next week. Next week could be the last week of morning committees, so there is little time left.
H 626 - An Act Relating To Animal Welfare
NEW STATUS: Read third time and passed Action Calendar: Third reading (04/19/24)
This bill proposes to establish the Division of Animal Welfare at the Department of Public Safety to develop, implement, and administer a centralized program for investigating and enforcing animal welfare requirements in the State. The bill would also amend or establish standards for the operation of animal shelters and animal rescue organizations. In addition, the bill would amend or establish requirements for the importation or transportation of animals into the State.
This bill is adding a surcharge on the rabies licenses which will go towards setting up a Division of Animal Welfare. The bill was sent over to the Senate this week, it technically missed crossover but we believe that it will still be taken up and passed or added onto a different bill.
H 687 - An Act Relating To Community Resilience And Biodiversity Protection Through Land Use
NEW STATUS: Referred to Committee on Finance per Senate Rule 31 (04/19/24)
This bill proposes to make multiple changes to the State land use and development law, known as Act 250. It would also make changes to the regional plans and municipal plans.
H.687 is a bill in that aims to make changes to land use regulations, municipal zoning law, and Act 250, and laws pertaining to construction and maintenance of housing with a focus on community resilience and biodiversity protection. The Senate drafted another bill, S.311, which they held to merge with H.687.
The bill:
ï It also establishes a professionalized Environmental Review Board (ERB) to administer Act 250 and creates programs and special funds for revitalization and resiliency efforts.
ï The fiscal impact of the bill includes both revenue losses and appropriations. The changes to the Act 250 process could result in an estimated annual revenue loss of $900,000 for the Natural Resources Board (NRB) and $70,000 for the Agency of Natural Resources (ANR) starting in fiscal year 2027. However, the implementation of three additional fees could generate an indeterminate increase in Act 250 Permit Fund revenues starting in fiscal year 2027.
ï The bill appropriates $2.0 million in fiscal year 2025 from the General Fund. This includes $1.5 million for the Municipal Planning Grant Program, $112,500 for ERB employees, $125,000 for Agency of Commerce and Community Development outreach and one position, and $250,000 for two positions at the Agency of Natural Resources.
ï The ERB, which would administer the Act 250 program, would consist of five members appointed by the Governor. The chair of the ERB would be a full-time position, while the other four members would be half-time. The bill also establishes an ERB Nominating Committee, comprised of members from the House, Senate, and Executive Branch, to review and approve the Governor's appointments.
ï The bill includes provisions for the creation of Tier 1 areas that are exempt from Act 250 under certain conditions. Municipalities can apply for Tier 1A or Tier 1B status, which would exempt residential developments in those areas from Act 250 and associated permitting fees. These changes may result in a reduction in fee revenue for the NRB Act 250 Permit Fund of approximately $900,000 starting in fiscal year 2027, representing about 30% of permitting and subdivision fee cost revenue.
ï Tier 2” is expected to constitute most of the land in the state. There, Act 250 jurisdiction would remain mostly the same as now, except for a newly established road rule: Act 250 review would kick in for private road construction over 800 feet, a measure intended to slow down forest fragmentation. The bill directs a report to flesh out the details of this tier.
ï Tier 3,” jurisdiction under Act 250 would become automatic, meaning any new development would trigger review under the law. H.687 doesn’t specify where, exactly, the “critical natural resources” of this tier would be — they may include “river corridors, headwaters streams” or “habitat connectors of statewide significance” — and instead directs a newly-established Land Use Review Board to establish a process for mapping out these places over the next few years.
Potentially the most controversial part of the bill is changing Act 250 administration from the Natural Resources Board, a citizen volunteer group, and installs a professional Land Use Review Board. This would move appeals from the judicial system to decisions by the new Board.
Governor Scott has signaled this approach is a non-starter. Language from S.311 "Bring everyone Home" was added into this bill.
The expansion of "on-farm" accessory businesses was stripped out of the bill and replaced with a review of whether and how Act 250 jurisdiction over commercial activities on farms should be revised, including accessory on-farm businesses. The report shall be submitted to the House Committees on Agriculture, Food Resiliency, and Forestry and on Environment and Energy and the Senate Committees on Agriculture and on Natural Resources and Energy.
Oppose - H 706 - An Act Relating To Banning The Use Of Neonicotinoid Pesticides
NEW STATUS: Referred to Committee on Appropriations per Senate Rule 31 Rule 31 suspended and bill not referred to Committee on Finance on motion of Senator Baruth Favorable report with proposal of amendment by Committee on Agriculture Second Reading Entered on Notice Calendar (04/19/24)
This bill proposes to prohibit the sale, offer for sale or use, distribution, or use of any neonicotinoid treated article seed for soybeans or for any crop in the cereal grains crop group. The bill would also prohibit the application or treatment with a neonicotinoid pesticide for multiple other uses.
The Senate committee on Agriculture passed the bill out 4-1-0. It is currently in the Senate Appropriations Committee.
The Senate Amendment moves the date out to 2031 and it also more closely aligns the waiver language to that of New Yorks treated seed ban waiver. Finally, there is a contingency in the bill saying if New York reverts their treated seed ban, Vermont would as well.
S 25 - An Act Relating To Regulating Cosmetic And Menstrual Products Containing Certain Chemicals And Chemical Classes And Textiles And Athletic Turf Fields Containing Perfluoroalkyl And Polyfluoroalkyl Substances
NEW STATUS: Unfinished Business/House Proposal of Amendment (04/19/24)
This bill proposes to (1) prohibit the manufacture, sale, and distribution in Vermont of cosmetic and menstrual products containing certain chemicals and chemical classes; (2) prohibit the manufacture, sale, and distribution in Vermont of textiles containing perfluoroalkyl and polyfluoroalkyl substances; and (3) prohibit the installation of any new athletic turf field containing perfluoroalkyl and polyfluoroalkyl substances.
House Human Services Proposed Amendment
Language from S.197, An act relating to restricting perfluoroalkyl and polyfluoroalkyl substances in consumer products has been added to S.25.
Sections pertaining to agriculture:
ï The Agency of Natural Resources shall obtain input on its recommendation from interested parties, including those that represent environmental, agricultural, and industry interests. They have said that they will ask for input from the Agency of Agriculture. We expect to follow this study process along with other stakeholders.
ï On or before November 1, 2024, the Agency of Natural Resources shall submit an implementation plan developed pursuant to this section and corresponding draft legislation to the House Committees on Environment and Energy and on Human Services and the Senate Committees on Health and Welfare and on Natural Resources and Energy.
ï For the purposes of this section, “consumer products” includes restricted and nonrestricted use pesticides.
S 258 - An Act Relating To The Management Of Fish And Wildlife
Read first time and referred to the Committee on Environment and Energy (03/28/24)
This bill proposes to transfer the authority to adopt rules for the taking of fish, wildlife, and fur-bearing animals from the Fish and Wildlife Board to the Department of Fish and Wildlife. The bill would also amend the authority of the Fish and Wildlife Board so that it serves in an advisory capacity to the Department of Fish and Wildlife. In addition, the bill would prohibit the hunting of coyote with dogs.
S 311 - An Act Relating To Bringing Everyone Home
Committed to Committee on Natural Resources and Energy with report of Committee on Economic Development, Housing and General Affairs intact, under suspension of Senate Rule 49, on motion of Senator Baruth Committee Bill for Second Reading (02/20/24)
This bill proposes to make multiple changes related to housing, including land use planning, Act 250, municipal zoning, taxes, and housing incentives and programs.
Some Language added into H.687, An act relating to Community Resilience And Biodiversity Protection Through Land Use.
Please reach out to Kevin Kouri, our NEAFA representative to Vermont Dairy Producers Alliance with any questions at kevin@phoenixfeeds.net