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Legislative Update – September 4, 2020

September 4, 2020

The work continues in Montpelier to pass a budget and adjourn, with leadership pushing for three weeks from today, but hoping to get out sooner. This week saw the House finalizing much of the budget and the Senate giving up on massive Act 250 reform. In Washington, the work has continued on a “skinny [relief] bill” by the Republicans and staff has begun work on a continuing resolution that would fund the government through December to avoid a partial government shutdown that could begin in October. 

In this week’s update: 

State Budget and Business Relief Take Shape 

The legislative process of appropriating the remaining Coronavirus Relief Funds moved right along, mostly as planned, in the House. The House Commerce Committee, which was presented with a $133 million of CRF requests for economic relief from the Governor was informed at the start of the week that they only have $100 million to spend. With the tighter budget, it was clear that the $50 million in consumer stimulus vouchers that the Governor proposed would be cut by the Committee. 

Despite the overall number being cut, the Commerce Committee’s proposal does elect to bring more direct aid in the form of grants to businesses. The Committee decided to limit total economic assistance from the CRF to $300,000 with a provision that would allow the grant program custodians to present to the Joint Fiscal Committee, a case as to why an individual business requires funds beyond the set cap. The House Commerce Committee also gives more discretion to ACCD to decide how to disperse aid based on demonstrated need which will be helpful to nonprofits with unique revenue streams and sole proprietors. The Commerce Committe also added $3 million for worker re-education and re-skilling at Vermont public colleges for upwards of 1,000 workers displaced by COVID-19. Finally, the Commerce proposal includes $5 million in support for safety modifications at Vermont ski resorts and $4 million for tourism marketing. 

ACCD has expressed a desire to allocate much of the funding to those industries hit hardest by the restrictions needed to combat the virus – lodging, hospitality, tourism, and event-related businesses. Members of the Commerce Committee repeatedly expressed frustration during proceedings this week that the capped occupancy rates for hotels, along with other restrictions, prevent the sector from bringing in revenue and expressed that the state should consider loosening those restrictions as other states have. This is unlikely, as the Administration has held in-person education as a higher priority, citing the physiological and developmental effects of not resuming such education on Vermont’s children. Given how the state’s planning and monitoring are structured, that means further “turns of the spigot” on the economy would need to be at least a month after school resumes on Tuesday. 

Language is under consideration in the Appropriations Committee to allow the Joint Fiscal Committee to re-allocate and expend funds after the legislature adjourns.

Act 250 Scrapped This Year

In an astounding turn of events, the Senate Natural Resources and Energy Committee decided to scrap the Act 250 bill, H.926. The Committee is now working on a strike-all amendment that covers only forest fragmentation and trail provisions in the bill. Being left behind now are exemptions from the jurisdiction in areas of enhanced designation; those provisions were pulled from S.237 and put into H.926 before it passed the Senate in an effort to build a “balanced Act 250 bill.” Now that H.926 will not include this ubiquitously agreed-upon component, LCC’s advocacy team and partners are in the process of requesting that those provisions be added back into S.237, which is being considered currently in the House Committee on General, Housing, and Military Affairs.

3-Acre Stormwater Rule Finalized and Published 

Days before the EPA’s September 4th deadline, the Vermont Department of Environmental Conservation released the new general permit that will go into effect on December 1, 2020. The Final GP 3-9050, and the response to public comment, are available on the DEC website. Applications for new development, and permit renewal, should continue to use GP 3-9015 and GP 3-9010 until December 1, 2020.

DEC will be updating their website in the near future to include a “summary of changes” in the final GP 3-9050 relative to the draft GP, and will develop a table of the schedule for submitting the required permit applications for “three-acre sites.” Additionally, DEC will be providing outreach letters to “three-acre sites” in the next week or so.

LCC’s advocacy team will be hosting two stakeholder meetings with the DEC stormwater team to help out members and partners better prepare to comply with the permit. Please email [email protected] if you would like to participate.

Alcohol To-Go Statutory Language Considered by Senate Economic 

Wednesday, the Senate Committee on Economic Development, Housing, and General Affairs was presented with draft language from the Division of Liquor Control, which could permit to-go alcohol sales until Dec. 31, 2022, much as we proposed! We need to put on some pressure; here is how you can help

  1. Email your Senator, who you can find here! 
  2. Sign and Share this petition on social media and ask your friends and family to sign! 
  3. Email members of the Senate Committee considering the proposal, thanking them, and asking them to help our hospitality sector in this way! 

We need to remind everyone that WINTER IS COMING, and businesses won’t be able to rely on outside seating. To-go food and alcohol will be the only option for many, and they need the stability of these provisions being in law, not just Executive Order.

President’s Executive Memo On Payroll Tax Deferment Update 

Guidance around the deferral of employee OASDI withholding was completed and published on Friday, August 28th, and the option is set to begin on September 1st, 2020. Below is a high-level overview of what we know since we sat down with Steve Trenholm to discuss the executive memorandum. 

Watch the conversation and read an update here and more can be read in the notice here.

Most Frequently Asked Question This Week

  • I saw the news that each household would get a $150 gift card, and then I saw that there was only a limited number of $30 gift cards that will be distributed on a first-come-first-serve basis on Tuesday; what happened? 
    • When the legislature passed Act 137 in June, $2.5 million was appropriated to the Vermont Department of Tourism and Marketing from the Federal Coronavirus Relief Fund (CRF). VDTM put out an RFP for a $500,000 program that would allocate consumer stimulus credit vouchers to Vermonters at Vermont businesses. This program is getting underway and businesses and Vermonters should apply to participate. When the Governor presented his proposed budget to the legislature, he requested $50 million in CRF funds to further expand on the program; with $50 million, VTDM has calculated that each household in Vermont could receive a $150 consumer stimulus voucher, however, this request is subject to legislative approval, and the House Commerce Committee voted yesterday to not include the proposal in their recommendations to the Appropriations Committee. Read more about the #BuyLocalVermont gift card program and enroll your business.

Hazard Pay Revision Bills

S.352 and S.353 attempts to cover some individuals who did not receive hazard pay, however, they are entitled to it under CRF guidance. The bill now brings into the hazard pay employees:

  • Working at grocery stores or pharmacies
  • Retailers deemed essential by Governor’s executive order
  • Wholesale distributors making deliveries to those essential retailers
  • Childcare facilities that were open and providing care to children of essential employees 
  • Providing security or crowd control  
  • Employees of hotels that DCF contracted with to provide housing to homeless populations; or 
  • Contractors who work in residential care or healthcare facilities 

These additions required an additional $22 million ($2.5 million from the S.252 and $19.5 millon from S.253) in CRF funds.

The Laundry List 

  • ACCD posted updated guidance clarifying the mask regulations in retail when a sneeze guard is in use, requiring face masks for all organized sports, and detailing contact tracing requirements for event venues. Please visit the ACCD Work Safe memo to review all current guidance in place.

  • The Lake Champlain Chamber’s Government Affairs Manager connected with Alexandra Clauss of  Primmer Piper Eggleston & Cramer PC for a conversation around an August 3, 2020 decision from the U.S. District Court for the Southern District of New York which vacated multiple provisions of the U.S. Department of Labor’s Final Rule on the Families First Coronavirus Response Act (FFCRA). In this 30-minute conversation, they discuss recommendations for employers covered by the FFCRA who may need to change their practices regarding the vacated provisions and other frequently asked questions. Watch the full interview here.

  • ACCD is continuing to encourage interested businesses to sign up now for the #BuyLocalVermont program, intended to drive more sales at local restaurants, retail stores, entertainment and performing arts venues, as well as lodging and tourism-related businesses, through savings offerings. More than 800 businesses have registered thus far. Businesses can enroll to take part in the program now, which will launch to consumers on September 8th. For full details on the process to sign up, and to find an informational slide deck and webinar, visit the ACCD Recovery Resource Center.

  • Please, please, please respond to the census and urge others to do so! We are starting to sound like a broken record only because this is important. 

Concerned or need to learn more about anything in this newsletter? Email our team at [email protected].

We look forward to working with you.
Sincerely, 
The Lake Champlain Chamber Advocacy Team

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Tom Torti, President
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Cathy Davis, Executive Vice President
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Austin Davis, Government Affairs Manager