Advocacy Update – Legislative Session Summary – 2024

Criminal Justice System Funding 

Whether the state criminal justice system needed more funding or not was a topic of debate between the House, Senate, and Governor throughout the session. The final results of appropriators’ debates brought funding to the issue, however, it will likely still not be enough. 

• Looking just at resources to Vermont’s state’s attorneys, who face incredibly high caseloads, we see that they are granted only a few positions on a temporary basis. 

Here is a look at some of the budget’s public safety spending; 

• $1.86 million to the Office of the Defender General for caseload relief
• $2.86 million to the Judiciary for new positions to address the criminal justice system backlog and court security in addition to three new superior court judges
• $297,000 to court diversion to address increased caseload 
• $661,000 to the Department of Corrections (DOC) for the pretrial supervision and electronic monitoring programs as outlined in S.195 
• $300,000 for Community Justice Centers

Repeat Offenses & Pre-Trial Monitoring – S.195 

While H.534 got most of the attention around repeat offenses, S.195 impacts repeat offenses more broadly. 

• Most notably, in this legislation, the $200 cap on cash bail is lifted for individuals with multiple offenses. 
• The legislation also creates the ability for pre-trial monitoring of those with multiple offenses or violations of conditions of release. The Department of Corrections estimated last month that setting up a pretrial supervision program would cost about $890,000, though the Budget provides $661,000 to the Department. 

Pre-Trial Diversion – H.645 

This bill creates a pre- and post-charge diversion for certain eligible first-time and low-level offenses. It also proposes to create a post-adjudication reparative program governed by memoranda of understanding that is required to outline eligible offenses, a process to supplement eligible offenses, evidence-based screening procedures, and confidentiality provisions.

• Advocates for Restorative Justice programs point to the programs’ ability to lessen the courts’ caseload by diverting low-level cases instantly to restorative justice programs. 

Fiscal note

Safe Injection Facility – H.72 

After more than a decade of discussion and debate, the Vermont Legislature has passed a bill that will create a pathway towards a Safe Injection Facility in Burlington where individuals can consume pre-obtained illegal drugs with access to harm reduction supplies, drug-checking services, addiction treatment, medical services, and overdose reversal medications.

• This legislation will inevitably be vetoed by the Governor, and it is unclear if the Legislature will have the votes to override a veto. 

Vehicle Trespass – H.563 

Vehicle thefts and break-ins erode public safety and quality of life while often supporting the commission of other crimes. The changes in H.563 will assist in prosecuting such disturbances, as our state notably did not have laws covering such activity. 

• Vehicle Trespass: If someone goes into another person’s car without permission and knows they’re not allowed to, they can be jailed for up to three months, fined up to $500, or both. If they do it again, they could face up to a year in jail, the same fine, or both. One does not need to be warned not to trespass for this to apply, as is currently the predicament with existing law. 
• Operating a Vehicle Without Owner’s Consent: If someone takes, operates, or uses someone else’s car without permission and should have known they didn’t have the owner’s consent, they could be fined up to $500. If they knowingly do it without permission and knew they didn’t have consent, they could be jailed for up to two years or fined up to $1,000, or both.

“Raise the Age” & Narcotic’s Penalties – S.58  

This legislation was controversial, to say the least, and covered many uncomfortable topics for legislators to debate. The legislation;  

• Adds increased penalties for dispensing Fetanyl and Xylazine. 
• Creates a two-year minimum term of imprisonment for selling or dispensing a drug with death resulting.  
• The bill adds crimes committed with a firearm to the list of “big 12 crimes” in which a juvenile can be tried as an adult. 
• Pushes back some of Vermont’s “raise the age” legislation’s implementation, which Governor Scott requested in his first address to the Legislature this session, calling it a mistake. 

Revisit our coverage of public safety and quality of life legislation from the session; 

• Navigating perspectives: criminal justice challenges and approval of safe injection facilities 
• Public Safety: Seeking Solutions Amidst Analysis Paralysis 
• Public safety everywhere, but no consensus yet
• Public safety and quality of life conundrums stop legislators
• Public safety and quality of life update
• Court Funding, Fentanyl Penalties, “Raise the Age,” and Safe Injection Facilities 
• Public safety bills considered in the House and Senate 
• Public Safety Bill Check-in 
• House and Senate Honing Final Versions of Public Safety Bills

Commerce and Employment 

Privacy Bill – H.121

This piece of legislation was a vestige of the first half of the biennium and quickly became contentious when advocates made changes to the House version and passed legislation in the Senate. While the legislation was aimed at large data brokers and holders, the language was concerning for Vermont’s small businesses with the issues the legislation came down to; 

• Private right of action (PRA):
  • This would make the state an outlier and leave businesses open to frivolous suits. As originally proposed, businesses and nonprofits were concerned the expansive Private Right of Action would put them at risk of frivolous and costly lawsuits.  Business advocates made the case that it would be best if complaints were processed through the AG’s office. 
• Interoperability/conformity to larger regulatory regimes 
  • There are two major models in the United States. California’s, which covers their 40 million residents (5th largest economy in the world), and Connecticut’s, which covers about 100 million Americans. The further we are away from them, the harder it will be for businesses in our little state of 645,000 people to comply with any legislation. 

The Senate version of the bill remedied the issues business groups had with interoperability by changing definitions for greater interoperability and completely removing the PRA in favor of a study of the appropriateness of a PRA done by the Attorney General’s office and the Agency of Digital Services. 

• The House was unsatisfied with this version as it did not contain the PRA they thought was essential. 
• A final, 11th-hour compromise amendment resulted in the restoration of a more narrowed Consumer Protection Act PRA that would be available to consumers to use only against large data holders and data brokers, violating sections of the bill related to consumer health data and sensitive information. The availability of the PRA to consumers is delayed until 2027 and sunsets in 2029. The AG’s office is required to report back to the legislature on the appropriateness of a PRA for Vermont in 2026. 
• The compromise also includes the definitional changes that the Senate proposed to enhance interoperability. 
• Large data brokers and data holders are entities that, during the preceding calendar year, processed the personal data of not fewer than 100,000 Vermont consumers. The Legislature felt this excluded all Vermont businesses and nonprofits.
• The strike-all amendment incorporates S.289, the Kids’ Code bill, which seeks to protect younger Vermonters online. 

VEGI – H.10 

The perennial slog pushing back the sunset of the Vermont Employment Growth Incentive Program continued this year, resulting in a two-year extension of the program. 

• The bill moved in various places, however, the main vehicle for much of the biennium was H.10, which sought to make various changes to the structure and governance.
  • The bill sought to create a forgivable loan program administered by VEDA, which would have required a loan loss reserve from the state. Late in the session, appropriators cut that funding to provide flood relief to businesses, thus making the original vehicle, H.10, superfluous. 

• In the end, a stripped-down version of H.10 made its way across the finish line, with an extension of the sunset included. 
• Next year, advocates will need to be prepared to come back to the Legislature with revisions to the program that accommodate the issues critics of the program see. 

“Captive Audiences” – S.102 

This legislation spans the whole biennium and is aimed at preventing employers from holding what is described as “captive audience” meetings in which they express their perspective on unionization, however, the language used to accomplish this is specifically referring to political and religious messages. Such broad language could allow employees to opt out of things such as DEI training, ESG investment discussions, or Earth Day events because they find them political in nature. 

The bill is modeled after a bill Connecticut passed, which is being challenged in the Second Circuit Court of Appeals (Vermont is part of that same jurisdiction). 

• The Committee heard from the Solicitor General that a challenge to this legislation would be costly and time-consuming and that Connecticut’s ruling would stand for Vermont. 
• The Lake Champlain Chamber testified that the Committee should stop pursuing this and allow Connecticut to bear the cost of a challenge to the legality of such legislation. 
• LCC cautioned that the Committee was playing with a double-edged sword as they challenged two long standing National Labor Relations Board pre-emptions around free speech by passing their language with questionable legality. This caution was echoed by the Committee’s legislative counsel the next day. 

The legislation was passed with bipartisan support and is unlikely to be vetoed.

Pay Disclosure in Job Listings – H.704 

H.704 requires Vermont employers to disclose compensation, or a compensation range, in job advertisements to prospective employees.

• Employers must include the compensation or range of compensation in any advertisement for a Vermont job opening, with exceptions for commission-based or tipped positions that require disclosure of payment structure or base wage.
• Employers have flexibility in hiring employees within or outside the advertised compensation ranges based on factors like qualifications or market conditions.
• The Attorney General’s Office is tasked with publishing guidance for employers and employees regarding these provisions by January 1, 2025, and conducting outreach and education in coordination with stakeholders ahead of the law, which takes effect on July 1, 2025.

UI Changes, Medical Leave, VEGI, & Baby Bonds – H.55

This legislation did not make it across the finish line despite it being a place for numerous provisions. 

• Unemployment Insurance (UI) Amendments: These include extending the period for which individuals can collect UI benefits without affecting employers’ contributions, allowing the Department of Labor to waive overpayments, and imposing penalties for false statements related to UI benefits. These changes are expected to have insignificant fiscal impacts.
• Unpaid Leave: the bill amends the current statute to replace the term illness with a medical condition such as rehabilitation from an accident, illness, injury, disease, or physical or mental condition including treatment for substance use disorder. 
• Vermont Baby Bond Pilot Program: This initiative establishes a trust for designated beneficiaries born after July 1, 2024, with an initial accounting of $3,200 per individual. The program aims to provide financial support for education, housing, business investment, or retirement.
• Workers’ Compensation for PTSD: The bill would shift the burden of proof for PTSD claims onto the State for certain State employees, potentially increasing annual workers’ compensation benefits costs by up to $425,000 and attorney fees by $105,000, although no significant immediate impact is expected for fiscal year 2025.
• Firefighter Cancer Screening Grants: It requires subsidizing cancer screenings for Vermont firefighters, but funding details are contingent upon appropriations from other legislation.
• Vermont Economic Growth Incentive (VEGI): The bill extends the VEGI sunset provisions, as a secondary location for the language as the session came to a close and all parties wanted to ensure the language wasn’t lost. 

Read the Fiscal Note here. 

Constitutional Amendment on the Right to Organize – PR. 3 

The Legislature took the first step in the five-year process of amending the state’s constitution to enshrine union support. 

That “no law shall be adopted that interferes with, negates, or diminishes the right of employees to collectively bargain with respect to wages, hours, and other terms of and conditions of employment and workplace safety, or that prohibits the application or execution of an agreement between an employer and a labor organization representing the employer’s employees that requires membership in the labor organization as a condition of employment.” 

The language did not draw great attention from many stakeholders for a few reasons;

• The passage was inevitable due to a veto-proof number of legislators sponsoring the legislation. 
• The language is ill-advised as some believe it will constrain the future ability of the Vermont Legislature to create employment policy such as the Legislature’s long sought-after paid family and medical leave, as such a proposal would interfere, negate, or diminish the rights of employees. 

Paid Family and Medical Leave 

After years of debate over how to extend such a benefit to Vermonters, Governor Phil Scott, in partnership with The Hartford, announced this session that employer enrollment for the Vermont Family and Medical Leave Insurance (FMLI) program started February 15. 

• Eligible employers with two or more employees can enroll starting February 15th and create customized plans tailored to the unique needs of their workforce and business. 

What You Need to Know:

• FMLI benefits provide partial income replacement for various situations, including;
  • caring for a family member with a serious health condition, 
  • bonding with a new child, addressing one’s own serious health condition, 
  • caring for a military service member, or
  • meeting needs related to a family member’s covered active military duty or call to active duty.

Key Features of FMLI Plans:

• Option to provide combined family and medical leave or standalone family leave insurance.
• Flexible contribution arrangements: fully paid by the employer, split between the employer and employees, or fully paid for by employees as a voluntary benefit.
• Benefit duration options are six to 26 weeks per 12-month period.
• 60 to 70% wage replacement, with additional options available through underwriting review.

Phases of Implementation:

• The initial phase of the program was successfully launched for Vermont State employees in July 2023.
• This announcement is part of the second phase.
• In the final phase, FMLI benefits will be extended to individual workers, self-employed individuals, and employers with fewer than two employees in Vermont. This phase is set to commence in 2025, with benefits starting on July 1, 2025.

Learn More:

Employers in Vermont who are interested in exploring the Vermont FMLI program further can collaborate with their employee benefits brokers or visit fmli.thehartford.com for detailed information.

Environment 

Climate Superfund Cost Recovery Program Fund – S.259  

S.259 introduces the “polluter pays” model in Vermont. This legislation mandates that major oil companies compensate for the damages caused by their products contributing to climate change in the state. The funds collected from these companies would be channeled into a Climate Superfund Cost Recovery Program Fund.

• Anticipating resistance from oil giants, lawmakers and stakeholders are preparing for potential legal battles, which could lead to substantial litigation costs for Vermont. 
• The Administration continually emphasized the need for thorough research and strategic planning, suggesting a careful approach to ensure the bill’s resilience under judicial scrutiny.
• The Governor will likely veto this due to concerns about the cost of Vermont litigating such legislation. 

Renewable Energy Standard Changes – S.289 

This legislation would amend the state’s existing renewable energy standard to require that most retail electricity providers’ annual load be 100% renewable energy by January 1, 2030.

• The cost of the changes has been the crux of the debate, with the Governor’s administration putting the cost at over $1 billion and the Joint Fiscal Office estimating the cost at between $150 million and $450 million between FY 2025 and FY 2035. 
• The bill will likely be vetoed by the Governor due to his administration’s concerns over cost. 

PFAS and Lead Regulation – S.25

S.25 seeks to regulate limits to the intentional addition of harmful chemicals in various consumer products and ensure compliance through certification processes.

• It would ban PFAS in clothing, makeup, menstrual products, diapers, and nonstick frying pans starting in 2026 and in turf starting in 2028.
• The policy also includes a first-in-the-nation ban on phthalates, formaldehyde, and mercury in menstrual products and restricts the chemicals in makeup.
• The bill directs the Vermont Department of Health to study a potential limit on lead in cosmetics and period products.

It’s unclear whether the Governor will sign this legislation. 

The Laundry List

Regional and county governance – S.159 

• The pandemic, last summer’s flooding, and our public safety crisis have laid bare the issues with Vermont’s unique lack of county government and relying on small, disconnected towns.
• S.159 creates a County and Regional Governance Study Committee composed of six legislators for up to 10 meetings.

Professional licensure regardless of immigration status – H.606

• H.606 will make professional licensure easier for new Americans in over 50 different professions. 

Reenvisioning the Agency of Human Services – S.183 

• S.183, creates a study tasked with reenvisioning the Agency of Human Services structure, analyzing options, and proposing recommendations by February 1, 2025. This amends the original bill, which aimed to divide the agency into two separate entities.

Prior Authorization – H.766

• A bill that changes prior authorizations in healthcare was controversial during this session and was opposed by insurers who claimed that it would increase costs, while hospitals and legislators claimed that it would lower costs. 
• The impacts of the change will undoubtedly be a topic of debate in future sessions, as the state will continue to struggle with costs inflating in every area. 
• There is a possibility that this bill is vetoed. 

Past Legislative Updates 

Read updates from Week 1, Week 2, Week 3, week 4, Week 5, Week 6, week 7, week 8, week 9, week 10, week 11, week 12, week 13, week 14, week 15, week 16, week 17, and the last session’s recap.