By Shouldice and Associates
With a low-grade surprise, the legislature failed to succeed in meeting their intended adjournment date. For the last several weeks rumors were running amuck about an end date ranging from mid-May to mid-June, but many were convinced they could close out this session by late Friday night. However, that plan got shredded when the Committee of Conference tasked with determining how to proceed with the education funding hit the brakes. Determination kept both chambers on their toes throughout the day and night, but the official fall of the gavel never occurred. Had they concluded their work Friday, there was still the likelihood of the Governor calling them back for a special session. This year the session started with some very heavy lifts to get resolved: the need for health care reform, housing was called a “crisis” and Vermonters in unison said they need relief from such high property taxes. As one might assume, none of those issues are easy and it is those three issues that required more time to negotiate. Committees of Conference continued to meet during the final week in rapid succession while the House & Senate floor played ping pong throughout the days gaveling in and gaveling out numerous times during each day as bills bounced back and forth between the two chambers. As everyone’s eyes were being tempted to slip into a snooze, nearing the midnight hour, both chambers threw up the white flag. The House Speaker said they would all be hailed back to the Statehouse for the veto session currently scheduled for June 16th and 17th. Initially, the Senate gaveled out with an expectation the Conference Committee could continue to work their magic Saturday morning on the education funding, and a floor time of 2PM to hash out the remaining bills. The Senate’s plan fizzled out after learning the House had adjourned until mid-June while pushing the calendar forward by having a token session on Monday, which consists of gaveling in and out with no action taken.
In modern slang, ‘tiff’ is used to describe a minor argument or disagreement between two people. It is often used to convey a sense of tension or unease in a relationship. You can bet your bottom dollar that this year, tiffs were quite common between the House and Senate chambers and between Democrats and Republicans, with a few progressives in the mix. Another nagging term that was voiced repeatedly throughout discussion in the housing bill was “But For”, a legal term commonly used in both tort law and criminal law to determine actual causation. The test asks, "but for the existence of X, would Y have occurred?". To be a fly on the wall during those hearings and even more intriguing, to be a fly on the wall in those ‘private backroom’ discussions that we all know go on, would likely have provided some juicy details.
In January, Speaker of the House, Jill Krowinski said she was committed to making “substantial reforms” to the state’s education funding system, increasing access to affordable housing, addressing the health care system crisis, and combatting the effects of climate change, pointing to the severe flooding that has devastated Vermont communities in recent years.
The President Pro Tempe, Phil Baruth started the session with the need for collaboration and compromise, “it will be a very different session”. Senator Baruth said he knew they would need to work with the Governor to address the outpouring of concern from Vermonters. And without the comfort of the previous super-majority held by democrats last session, they were being forced to work with Governor Phil Scott. The Governor said multiple times throughout the last two weeks he would be calling back the general assembly if they did not address education and property tax reform in a way he could support. The clock is ticking on that one.
The FY’26 spending plan broke the $9 billion mark, up $3 billion over the last three years and up over $6 billion in the last 20 years. The budget includes federal funded programs, state transportation funding, and education payments which could turn the budget upside down if the federal cuts come to fruition. The budget uses one-time surplus funds to lower the average increase in property tax rates to about 1%. Communities may see higher or lower rates depending on their individual school budgets and adjustments for the Common Level of Appraisal (CLA). Some lawmakers warned that utilizing surplus funds to bring down tax rates could cause even larger increases next year.
Let’s not forget about the Governor’s continued charge at making Vermont more affordable. While each issue was dealt with in committees and then in their respective bodies to pass legislation, one must remember that it is the cumulative effect of the potential 24% increase in health insurance premiums, increased and unaffordable cost of housing, property tax bills, climate change remediation, and public safety. How did the Vermont General Assembly do? That question could be answered with conflicting and harsh opinions. Begs the question, will we see more Republicans sworn in for the 2027-28 biennium as we did this biennium with the unrest of many Vermonters?
We will wait to see the fate of the education funding bill that has forced another extension of the legislation session. When the bill finally lands on the Governor’s desk many will be holding their breath awaiting his action. If the Governor veto’s the education reform bill and housing plan, the question is, will the legislature attempt to override? Folks are a bit on edge wondering what will occur in the next few months with direction coming down from Washington. Safe to say that regulators and legislators will need to act quickly in the wake of these cuts.
More to come when the General Assembly reconvenes on June 16th in an effort to pass an education bill Governor Scott can approve.
H 134 - An Act Relating To Calculating Land Use Change Tax And Creating A New Land Use Change Tax Exemption For Developing Affordable Housing
Rep. Kornheiser of Brattleboro moved that the Committee on Ways and Means be relieved of the bill and that the same be committed to the Committee on Agriculture, Food Resiliency, and Forestry, which was agreed to (02/06/25)
H 481 - An Act Relating to Stormwater Management
NEW STATUS: House message: Governor approved bill on May 27, 2025 (05/28/25)
The purpose of the bill is to improve stormwater management and water quality by extending permitting deadlines, enabling municipalities to assume responsibility for stormwater systems, and creating funding mechanisms like the clean water surcharge. The bill establishes grant programs, promotes regional collaboration, and provides resources to help property owners and municipalities comply with water quality laws.
Stormwater Management Enhancements:
Extends deadlines for permitting impervious surfaces of three or more acres.
Allows municipalities to assume full legal responsibility for stormwater systems and assess municipal impact fees on users.
Clean Water Surcharge:
Repeals the sunset of the clean water surcharge on property transfer tax.
Extends the surcharge as an interim funding source for water quality initiatives, with plans to reduce it to 0.04% by July 1, 2027.
Grant Programs:
Establishes the Developed Lands Implementation Grant Program and Municipal Stormwater Implementation Grant Program to provide financial assistance for compliance with stormwater permitting requirements.
Prioritizes funding for clean water projects, agricultural water quality programs, and innovative technologies.
Regional Stormwater Utility Districts:
Creates a Study Committee to explore the feasibility and benefits of regional stormwater utility districts for compliance with water quality laws.
Focuses on equitable revenue-raising, cost-effective pollutant reduction, and improved management of stormwater systems.
Deadlines and Implementation
Three-Acre Stormwater Permit: Coverage deadlines extended to:
October 1, 2028 for Lake Champlain, Lake Memphremagog, and stormwater-impaired watersheds.
October 1, 2038 for all other watersheds or five years after a binding waste-load allocation is established.
General provisions take effect on July 1, 2025. Future Clean Water Fund priorities take effect on October 1, 2032.
H 483 - An Act Relating To The Expansion Of Existing Income Tax Credits
Rep. Kimbell of Woodstock moved that the bill be committed to the Committee on Ways and Means, which was agreed to (03/25/25)
H 484 - An act relating to Miscellaneous Agriculture Subjects
NEW STATUS: Senate Message: House proposal of amendment to Senate proposal of amendment concurred in (05/30/25)
The final version of this bill focuses the definition of beneficial substances and establishing regulations for their distribution, labeling, and registration, alongside fertilizers and lime. It adjusts registration fees by allocating portions to specific funds, $15 supports the Agricultural Water Quality Special Fund, and $25 goes toward education and technical assistance on pesticide use and pollinator protection. An additional $50 per product fee is added to support pesticide disposal efforts until a fully funded extended producer responsibility (EPR) program is in place. Furthermore, it validates a previous heavy cut rule for forests. Finally, significant portions detail updates to the Household Hazardous Waste Extended Producer Responsibility program and the Paint Product Stewardship Program, including changes to registration, collection plans, funding mechanisms, and timelines. This bill became a “Christmas tree” right up until the end of the session with added exemptions for Rutland’s fair stormwater permit
H 494 - An Act Relating To Capital Construction And State Bonding
House message: Governor approved bill on May 22, 2025 (05/22/25)
S 45 - An Act Relating To Protection From Nuisance Suits For Agricultural Activities
S.45 Draft 2.1
NEW STATUS: Senate Message: Report of Committee of Conference adopted (05/30/25)
This bill that would limit the types of nuisance suits property owners can bring against farms. It ensures that farms operating under generally accepted agricultural practices (RAPs) cannot be deemed a nuisance unless they are negligently operated or violate state water quality laws. The bill also extends protections when farms change ownership, alter farming methods, or temporarily cease operations for up to five years. Additionally, it mandates mediation before legal action can be taken against a farm for nuisance or trespass claims.
The Senate did not appreciate the bill that they received back from the House and chose not to concur, which led to a committee of conference. During the conference, the Senate proposed additional guardrails around the noxious and substantial adverse health and safety effect of nuisance protection. The guardrails require scientific or medical evidence that a neighbor is being affected by farming practices. This bill provides more protection for farmers from frivolous lawsuits. We will send along the final draft of the bill as soon as it is published.
S 60 - An Act Relating To Establishing The Farm Security Special Fund To Provide Grants For Farm Losses Due To Weather Conditions
Referred to Committee on Appropriations per Rule 35(a) (04/25/25)
This bill proposes to establish the Farm Security Special Fund to provide financial assistance to farms that experienced qualifying losses due to weather conditions. However, due to budget constraints, the House Appropriations committee received the bill and stuck it on their wall for this year.
S 124 - Senate Miscellaneous agricultural subjects
NEW STATUS: Senate Message: House proposal of amendment concurred in (05/30/25)
The bill amends several sections of law to clarify and modify the roles and responsibilities of the Agency of Agriculture, Food, and Markets and the Agency of Natural Resources in this area. A key aspect of the bill is the requirement for the Secretaries of these agencies to coordinate on various aspects of agricultural water quality management, including implementing and enforcing programs, plans, and practices for reducing agricultural nonpoint source pollutants and discharges from concentrated animal feeding operations (CAFOs). The goal is to ensure consistency with federal regulations and the state's water quality standards. The bill outlines permitting requirements and operational standards for large and medium farm operations, including provisions for manure management, nutrient management plans, and buffer zones. It also establishes a community stakeholder group to provide input on the transition to a CAFO program aligned with the federal Clean Water Act, with the Secretary of Natural Resources tasked with leading the implementation of the Clean Water Act on farms. There will be reports from ANR coming back next year to ensure they are inspecting farms. ANR has already outline 10 farms to inspect this summer.
S 125 - An act relating to workers' compensation and collective bargaining rights
Senate Message: House proposal of amendment concurred in (05/23/25)
The bill considers collective bargaining rights and workers' compensation. The bill amends Vermont law to refine procedures and definitions related to labor relations, unit determination, certification, and representation for collective bargaining. Changes to current law include:
Definitions of "Employee": Clarifies exclusions from the definition of "employee" for collective bargaining purposes, such as judges, managerial staff, temporary workers, and others.
Petition Requirements: Updates the percentage thresholds for filing petitions related to forming bargaining units, decertifying representatives, or asserting changes in representation.
For example:
30% of employees are required to petition for forming a bargaining unit.
50% plus one of employees are required to petition for decertification of a bargaining agent.
Employer Obligations: Specifies timelines for employers to respond to petitions, file objections, and provide employee lists for proposed bargaining units.
Election Procedures: Establishes rules for secret ballot elections to determine representation, requiring a majority vote (51% or more) for certification or decertification of bargaining agents.
Special Provisions: Includes specific rules for municipal employees, independent direct support providers, and early care and education providers regarding collective bargaining.
The act will take effect on July 1, 2025.
This bill outlines proposed changes to collective bargaining laws in Vermont, affecting various groups including judiciary employees, teachers and administrators, private sector workers, municipal employees, independent direct support providers, and early care and education providers. The amendments primarily focus on adjusting the procedures and requirements for establishing, maintaining, and challenging bargaining units. Key changes include modifications to the percentage of employee signatures needed to file petitions for representation or decertification and procedures for unit determination by the relevant boards. This bill was significantly pared down from the numerous industries it included as introduced.