February 25, 2011 – Week 8

The week before the Town Meeting Day is always a flurry of activity as Committees work to finalize bills so they can report their progress to constituents. The House spent long hours on the floor debating, with the Republicans in the House working to ensure that bills received proper scrutiny. When legislators return to Montpelier on March 8 they’ll have only that week to finish up work on bills before they have to crossover to the other body.

The Chamber and GBIC worked with legislators to introduce legislation that limits the use of certain types of phosphorus and nitrogen fertilizers. The bill passed the House this week and now goes on to the Senate. H.26 was described by Representative Jim McCullough (D-Williston) of the House Fish and Wildlife Committee as “a realistic first step that Vermont can take toward reducing pollution.”  The bill bans the sale and use of certain phosphorus and nitrogen fertilizers, except for cases in which a soil test is provided, new turf is being established, or for golf courses and agricultural uses. Retailers who sell phosphorus fertilizer must keep it separate from other products and post an 8.5” x 11” sign that educates users about the new law. Golf courses will now need to include a plan for fertilizers as part of their nutrient management plan. We are appreciative of the Committee's leadership on this bill, since small efforts like this will help protect one of our region’s most important assets, Lake Champlain.

H.258 intends to increase public participation in environmental law enforcement and appears to be on a fast track for passage as joint meetings of the House Natural Resources and Fish and Wildlife Committees were held to receive a bill overview and testimony from advocates. This bill would make significant changes to the environmental law enforcement statutes that govern the public’s ability to participate in the enforcement process. It is the result of a petition filed by Conservation Law Foundation (CLF) with the Environmental Protection Agency to take away Vermont’s authority to administer the Federal Clean Water Act (CWA). CLF cited the State’s failure to provide for adequate public participation in enforcement actions pursuant to the CWA. H.258 takes the approach of expanding public participation by allowing intervention as a right via a change in the definition of an aggrieved person as “any person or persons having an interest that is or may be adversely affected by a violation subject to an enforcement action under this chapter.” The new definition is clearly a broader and easier standard to meet, allowing parties to participate in hearings and appeals for Administrative Orders. The bill as drafted extends to all state enforcement programs including the environmental ticketing process. If you are concerned about these changes, please contact your legislator or dawn@vermont.org.

The House passed J.R.H.11, a joint resolution urging Congress to approve a streamlined sales tax agreement that will authorize the national collection of sales tax from online sales. Frustration has been expressed about the State’s inability to collect the sales tax at a cost of $30-40 million worth of revenue to the State and the inequity for our brick and mortar retailers. The Ways and Means Committee also passed H.143, which would require businesses that sell items subject to the sales tax via independent contractors located within the state to collect and remit sales tax. Jim Feinson of Gardener’s Supply Company testified in opposition to the bill due to concerns about the complexity of collecting multiple sales taxes from various regions. He believes his company’s web-based sales would suffer if costs for customers increased due to a sales tax. Representative Jim Condon (D-Colchester) commented that until the issue is resolved at a national level, “we are just asking for trouble by passing this bill.” However, the committee passed out the bill, which is modeled after a New York law, and would not take affect until 2012.

The Senate Economic Development, Housing, and General Affairs Committee finalized work on the Telecommunications Bill (S.78). The bill is intended to establish policies and programs to facilitate the achievement of the goal of statewide cellular, broadband and smart grid deployment by 2013.
The bill calls for:
• An easing of permitting issues on telecommunications projects.
• Assistance in resolving issues around access to existing utility poles.
• Restructuring of the Vermont Telecom Authority.
The bill is expected to go two additional Senate committees before it goes before the full Senate.

The House Natural Resources Committee continued their work on H.56 this week, releasing a new draft of the bill. The newest version does not include a solar standard offer provision which some feared would have a negative impact on rates. Two other provisions that could increase rates are still in the new draft: an expansion of Vermont’s net metering program and a requirement that utilities purchase biomass power. In our testimony on the bill, we asked the Committee to consider a number of other increases that businesses have seen (such as increases to unemployment and health care insurance) in conjunction with any provisions that would have an upward pressure on electric rates in Vermont.

Bills dealing with employment issues were considered in a couple of committees this week. The Chamber and GBIC testified in the House General, Housing, and Military Affairs Committee on both H.41 and H.42. H.42 would prohibit employers from obtaining credit checks as part of the hiring process unless covered by a specific exemption. The Chamber noted that in checking with our members, the exemptions currently in the bill needed expansion or clarification. H.41 would require employers to provide a paid, or unpaid, break of at least a half-hour for every six hours of work. The Chamber indicated that such a requirement would reduce employers’ flexibility. The Chamber heard from one member whose employees typically work six-hour shifts and can leave their equipment for short breaks throughout their shift but not in thirty-minute increments. The Senate Economic Development Committee also took initial testimony on S. 52, An Act To Protect Employees From Abuse At Work. The Committee seemed interested in convening a study committee to look at the issue and report back before the next Legislative session.

The House Commerce Committee is expected to vote out a “Jobs Bill” Friday. Our organizations submitted testimony in support of several measures included in the bill including a change to the Vermont Neighborhoods program, extending the Vermont Employment Growth Incentives, a new statewide internship program, long range economic planning, and continued funding for training programs. One measure initially considered as part of the Jobs Bill was brought up for debate on its own this week. After some procedural debate sparked by House Republicans concerned about the lack of process, the House voted to approve H.275, a bill designed to get recently deployed veterans back to work. The bill allows veterans to claim a $2,000 tax credit for expenses associated with one start-up business and also grant employers a $2,000 credit against their income for each veteran hired on or before December 31, 2012.

The House passed a bill (H.299) that repeals the two-vote requirement when school budget increases exceed an established level. During consideration of the bill, Republicans offered an amendment, which among other things would have given the Blue Ribbon Tax Commission authority to study and make recommendations on Vermont’s property tax system. While Democrats acknowledged the issue deserves further study, the amendment was not allowed, as it was ruled nongermane.

The House Health Care Committee continued to mark up H.202, the health care reform bill. The Committee decided that only plans with at least 70% actuarial or “silver” coverage will be allowed in the health care exchange the bill sets up. The Committee could have allowed “bronze” level plans with 60% actuarial coverage, but felt that allowing people to be underinsured would not move Vermont forward. The Committee also decided to study whether employers with up to 50 or 100 employees would be allowed to purchase within the exchange for the first few years. The Committee will likely wrap up their work on the bill the week of March 8 following a public hearing using Vermont Interactive Television on March 7.

Last week the House Tourism Caucus provided legislators the opportunity to listen to a presentation of “Leveraging the Vermont Brand.” The study was conducted by the Vermont Department of Tourism and Marketing and the Vermont Ski Areas Association to look at perceptions of Vermont and how they affect choosing a vacation destination. By better understanding Vermont’s unique strengths our businesses can fully leverage Vermont’s brand and increase market share. For more information on the research, click here.

Bills of Note

H.216 would make changes to federally assisted affordable housing by requiring offers of first refusal and sales at fair market value of these projects.
H.315 would eliminate property tax exemptions including exemptions for ski area lifts and machinery and equipment for manufacturers. Click here to read bills online.