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Legislative Update – Week 13

This week’s Legislative Update is sponsored by:

April 10, 2020

“Just five or six weeks ago, our life was normal” were the words of the Governor at his press conference today. What is normal? As sad as it is to say, the Vermont legislature has settled into its new normal, as have many others. Committees are getting more comfortable and proficient with remote meeting tools. On Wednesday the Senate approved a temporary rule to allow the Senate to meet remotely during a state of emergency and utilized that new ability to pass legislation today which we will discuss in this newsletter. 

With this, the question remains how much of their work will focus on COVID-19 response and how much of their old work will they return to. The initial agreement by the Joint Rules Committee was that pandemic response would be the only work done by committees. While the Senate committees seemed to adhere to this, it is uncertain with House Committees. While a committee might not have COVID-19 related work to do, continuing with anything not related to the crisis at hand does detract from the COVID-19 response. Administration officials, as well as advocacy groups such as LCRCC, are focused first and foremost on responding to, and recovering from, the COVID-19 pandemic. Taking time away from these pressing needs to focus on legislation that would do things such as ban small shampoo bottles in hotel rooms seems misguided.

In this week’s update:

Governor’s Executive Order Extended and Clarified for Lodging Establishments 

Today, Governor Phil Scott extended Vermont’s State of Emergency through May 15, which also extends the expiration date of all corresponding orders and directives issued in response to the COVID-19 pandemic.

As part of this announcement, effective immediately, lodging businesses will once again be allowed to accept reservations for stays beginning on June 15. The inability of lodging businesses to book future business was making an already difficult situation much, much worse. Our Advocacy Team raised this issue repeatedly, pressing for this clarity and we are glad that it has finally been issued. You can read the Governor’s full announcement here.

While many are looking intently at the wording of the Executive Orders to find a liberal interpretation that would allow continued operation, LCRCC is urging its members to honor the spirit of the order and err on the side of protecting public health. It is also important to note that the state has an online form where individuals can submit complaints against businesses or people they feel are in violation of the Stay Home, Stay safe order.

Federal Legislation in the Works 

Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer both introduced bills on Thursday related to adding funds to SBA’s PPP program. Senator McConnell’s bill involved solely additional funding while Senator Schumer’s bill adds funds for SBA as well as additional food assistance, state relief, and other proposals. Neither bill seems to be likely to move soon, however, additional funding could be added to SBA programs by unanimous consent without broader congressional action.

LCRCC sent a memo to the congressional delegation this week requesting that the next round of stimulus/stabilization include the following:

  • Additional funding to SBA programs (done earlier by unanimous consent if possible) as well as reforms to the program to broaden access.

  • Hazard pay for workers in essential businesses required to have in-person contact. This would remedy the inequity of employees making less at their job than on unemployment that was created by the CARES Act. 

  • The use of infrastructure around business interruption insurance to deliver relief. LCRCC suggested that delivering federal funding this way would be the most effective way on the basis of time, energy, money, and startup. 

  • Tax credits for businesses that have re-tooled their production to meet the need for personal protective equipment (PPE) similar to the relief from excise tax for distilleries switching production to hand sanitizer that was created under CARES. 

  • Targeted relief for the tourism, travel, and leisure sector given the long-lasting effects this pandemic could have on travel. 

  • Relief for small, local media outlets that have to balance funding and delivering a public good as businesses advertisement revenue disappears. 

Other suggestions have swirled around the media and zoom channels everywhere including a second round of stimulus checks sent to individuals, a massive bi-partisan infrastructure bill to get Americans back to work (we’ve been hearing this from the beltway for years, could this pandemic actually make it happen?), and even student debt forgiveness. While none of this is certain, we certainly want to hear from you what you think will help, as does our congressional delegation. Send us your ideas!

Vermont Eviction and Foreclosure Moratoria Passed The Senate 

Today, the full Senate, voting on its first remote bill, passed legislation that would institute a moratorium on evictions during the COVID-19 state of emergency by a vote of 29-0. This legislation represents an unprecedented compromise between landlord and tenant advocates and was the result of the assumption that at some point landlords will be made whole.

The moratorium would apply to individuals who are unable to work because of their own illness, illness of a member of his or her household, isolation required by his or her employer, isolation required by State or local government authorities or isolation required by his or her primary care provider or another health official. This legislation does not allow tenants to not pay rent, nor does it prevent the courts from holding emergency hearings around tenant actions that pose serious threats to the health and safety of other tenants. 

The moratorium would stay in effect through the state of emergency declared by the Governor arising from the spread of COVID-19 and until 60 days after the Governor terminates the state of emergency and shall apply to any individual. The order would apply to rental properties as well as housing lenders and utility companies provided the occupant provides notice. 

Language in the bill related to additional funding, as well as language involving broadening FMLA, which LCRCC was monitoring to ensure it did not put the state at risk of falling afoul of the CARES Act, was removed from the bill. The language of the bill can be found on page 2162 of today’s Senate Calendar. The legislation now moves to the House for consideration. The Senate Economic Development Committee has expressed a desire to address commercial leases now that the residential bill is off their agenda.

Governor Scott’s Request for Federal Disaster Declaration Granted 

On Tuesday Governor Scott requested federal disaster funds to assist the state of Vermont in its response to the COVID-19 pandemic. On Wednesday, the President declared that a major disaster exists in the State of Vermont and ordered Federal assistance to supplement State and local recovery efforts in the areas affected by the Coronavirus Disease 2019 (COVID-19) pandemic beginning on January 20, 2020, and continuing.

Direct federal funding assistance is available to the State, eligible local governments and possibly certain private nonprofit organizations could be eligible for reimbursements such as nursing homes, laboratories, rehab centers that provide medical care, hospitals and emergency care facilities, fire/rescue emergency services and education facilities.

The Vermont Department of Finance and Management has advised that the state has already expended well over $20 million in response costs, including Personal Protective Equipment (PPE), medical equipment and personnel. The final cost of the response is expected to be far greater.

Applicant briefings will be hosted by Vermont Emergency Management within the next two weeks. A schedule will be announced shortly. Click here for more information on the Public Assistance program and instructions on how to apply.

Unemployment Update

Hold on, we’re about to take a deep dive into unemployment insurance (UI). In this section, we’ll discuss some boilerplate advice for applying, why this is not the only option despite conflicting legislation pushing most people in that direction, and how you could be eligible for unemployment even if you don’t think you are because of the Pandemic Unemployment Assistance (PUA). 

First, a quick breakdown of changes to UI made at the state and federal level over the last month:

See a complete overview of recent federal and state legislation in response to the COVID-19 pandemic here.

Unemployment Application Resources 

If you or someone you know is trying to file a claim, please see this guidance.  If a claim was filed online, the applicant should receive a letter within 5-7 business days. Additionally, the Department of Labor has hosted multiple webinars that may be viewed here. Employers can find more information around alteration to their requirements in letting employees go here.  Every claim that is received, as long as the individual is eligible for benefits, will receive benefits back to the date of separation. 

Today, VDOL announced it will implement an alphabetized structure based on the LAST NAME for the intake of weekly claims and inquiries; effective Sunday, April 12.

Moving this structure will help VDOL better handle the massive caseload they are experiencing. More information can be found here.

Thousands Rush to UI as Conflicting Legislation Makes it the Best Option 

The number of people applying for unemployment in Vermont had reached a new height of 71,617 (about 20% unemployment) Vermonters this week (claims between 3/15 and 4/7). Despite the intention of the two federal packages aimed at keeping employees on payrolls rather than going to UI, the UI program is bearing the brunt of the economic shutdown. The best advice (obviously with many caveats) it would seem is, “when in doubt, apply for UI” due to its now-massive payout and new ability to cover everyone who at any other time would not be able to take it. 

For many employers, SBA financial tools will mean that they can bring their employees back on their payroll during this crisis. They may be paying the employees to do nothing because the business is one of the majority that has been ordered to shutdown, however, that is the point of the program, to keep payroll intact and people out of the unemployment program. The programs were designed for this and this is why retention tax credits and generous forgiveness was included in the CARES Act. Similarly, for those businesses that are essential, the Families First Coronavirus Response Act means that if an individual is sick or needs to leave during this crisis UI isn’t the only option; the employer can pay their leave and be refunded via tax credits later. Additionally, reimbursable employers who do not pay into the UI trust fund, though have employees eligible for UI, may want to bring their employees back on if they can, since they pay out any UI benefits dollar for dollar.

Despite the economic conditions, and the massive number of people going on UI, there are still employers hiring in Vermont. Many essential businesses are looking to replace individuals who’ve had to leave due to the crisis and others have expanded operations to meet the current need. State Agencies and Departments are still hiring for many positions critical to the State’s continued operations. Here’s a link to the most immediate hiring needs. However, we may see less interest in people rejoining the workforce until the Pandemic Unemployment Compensation of $600/week dries up at the end of July.

There has still been little guidance around how to deal with the expanded eligibility to put one’s self on UI combined with how lucrative an option the CARES Act made it. The best advice that can be given is to work with your employees to make sure your workplace is as compliant with OSHA and CDC guidelines as possible given the current circumstances. What if that is impossible right now if you are an essential business that requires close contact, thus violating CDC guidance? That is a question no one has gotten a direct answer to yet. 

Unemployment for Individuals Who Previously Could Not Take It

The Vermont Department of Labor received more guidance from the U.S. Department of Labor on Sunday allowing them to continue implementing the changes to the state’s unemployment insurance program created under the CARES Act passed by Congress on the 27th of March. Vermont is in a better position than sister states which are looking at months until they can offer these enhanced benefits; alternatively, Vermont is hoping to have the applications finalized in the next week and be distributing benefits within 7-10 days of that. 

The Pandemic Unemployment Assistance program is modeled after the Disaster Unemployment Assistance program and allows independent contractors, sole proprietors, self-employed individuals, single-member LLCs, and other individuals would otherwise not be eligible for unemployment insurance access to this benefit. The state worked through the Disaster Unemployment Assistance program after Tropical Storm Irene, however, that resulted in a little over 100 claims, where now VDOL is expecting somewhere between 30,000 and 60,000 claims. 

Individuals will be eligible for a UI claim based on what they can provide to the VDOL to show wage history. The benefit will have the same maximum and minimum benefit as the state’s UI program of $513 and $191 as of April 1, 2020. An individual operating a business that does not make a salary or reports a loss would still qualify for the minimum benefit. Recipients of PUA will be eligible for the $600 from Pandemic Unemployment Compensation (the extra $600 the CARES Act added on the state’s UI benefit).   

There are 11 criteria to be eligible to access this benefit and applicants only need to certify that they meet one. Separately, individuals must be able and available to work “but-for” the COVID-19 state of emergency. Individuals are not eligible if they are able to telework with pay or are receiving paid sick leave/paid leave benefits (see the FFCRA section of our legislative overview for more). If a person is facing reduced work or hours, they can apply and likely receive a benefit, however, they will need to certify that information is true under penalty of perjury as well as the need to show VDOLl how many hours they are working and revenue losses on a weekly basis.   

Though VDOL does not have the program off the ground VDOL will have the ability to retroactively give benefits. If a person is hoping to apply for UI under PUA, you can file a claim now through the general UI system. If they have not worked for an employer paying the UI payroll tax in the last 18-months, they will certainly get a denial letter from VDOL saying you are not eligible for benefits; they should hold on to that letter, as it may be helpful when applying to PUA. If they have worked for an employer paying UI tax in the last 18-months, the benefit might be assessed using that information.

Education Needs and Funding Issues 

Of all the aspects of normal life interrupted, childcare and education might be the most. Thousands of students across the state have been forced to try to continue their education from home, putting technological inequities on full display as they create obstacles to remote learning. This week, Governor Phil Scott and the Vermont Agency of Education announced they have partnered with Vermont PBS to provide free educational content for kids from pre-K through 12th grade through the end of the school year. The Vermont PBS programming supplements materials released by Vermont schools to help kids continue to learn while social distancing. Find the schedule and additional resources here

Meanwhile, Commissioner June Tierney from the Department of Public Service offered legislative committees updates and suggestions to address the problem as well as work her Department is doing with the federal government to expand broadband. She told the committee that they are hitting statutory limits for placing poles, whether from Act 250 or telecom siting statute and said it would be helpful to get some relief from that. Commissioner Tierney said DPS is mobilizing a hotline to help understand which teachers and students need better access. To provide access to every address would cost $350 million. 

Aside from remote learning, this pandemic has brutally derailed our state’s education funding system. Although all but 18 schools have budgets that have been approved for FY 2021, the contracts with teachers have not yet been settled. Additionally, Senate Finance heard from Joint Fiscal today that the $12.9 million surplus and the $36.4 million in the stabilization reserve of the Education Fund have been used and Vermont will need an additional $39.5 million to offset the expected $89 million in lost revenue. That does not include the $37 million Vermont would normally want in the stabilization reserve.

The Laundry List

  • Reminder: please find a moment to take the census. While it might be the furthest thing from your mind right now, it is important, especially in a small state like Vermont, to have an accurate accounting of our population to ensure adequate representation and distribution of funds from the federal government.
  • The Legislative Committee on Administrative Rules (LCAR) will be reviewing the Emergency Notarization Rule created by the Secretary of State next Monday that will set the guidelines for remote notarization. The rule requires that an audio-visual recording of the notarial act be retained for 7-years and requires a certificate be completed for remote notarial acts. Additionally, the House and Senate Judiciary Committees are discussing which legal documents to authorize attorneys to craft without having to have in-person meetings or notarization by a clerk.
  • The Senate passed S.124 today making numerous amendments to support emergency medical services, county sheriffs, plumbers, and electricians during the COVID-19 crisis. The bill extends the renewal period of licenses by the Electricians’ Licensing Board and Plumbers’ Examining Board, all electrician and plumber licenses that were due to expire between, March 30, 2020 and September 30, 2020, shall remain valid and be deemed to expire on September 30, 2020, and any associated late fees for renewal that would have applied during that time frame shall be waived.
  • The Agency of Natural Resources has issued new environmental enforcement and permit compliance guidance in conjunction with the Stay Home, Stay Safe order. This guidance will expire at the end of the Governor’s state of emergency declaration.
  • ACCD still wants to hear from all Vermont businesses impacted by the response to the COVID-19 virus. Please share these impacts via the ACCD Business Impact Form, which will help us assess the full impact as we work toward solutions. 
  • As conversations around hazard pay happen at the state and federal levels, state employees have already seen such a bump in pay. Employees in corrections and state hospitals have seen a $1.50/hour premium costing about $800,000 for a period of three weeks. 
  • H.741, passed by the Senate today, allows Buildings and General Services to notify a contractor they were denied a state contract because an individual working for that employer failed a background check; the contractor can then can reconfigure the personnel on that proposal such that they can be granted the contract. This will help the state bring necessary contractors to address COVID-19, pending passage.  
  • Don’t forget, the LCRCC team is continuously updating our COVID-19 resource page which can be found here.

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

We look forward to working with you this session.
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
Thank you to this week’s sponsor of the Legislative Update: