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PO Box 440, St. Albans Bay, VT  05481

Phone: 802.876.6200

Email: info@homebuildersvt.com

LEGISLATIVE COMMITTEE BLOG

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  • 09/04/2020 7:57 AM | Anonymous


    Legislative Session 2020 started out like most sequels, with a feeling of déjà vu. It was Groundhog Day with a touch of “I Am Legend” thrown in for atmosphere. Nearly two months to the day after adjourning, legislators returned to Zoom and YouTube, logging dozens of hours a day of deliberations in order to take on the full-year budget and allocate the remaining Coronavirus Relief Funds of around $200 million.

    Vermont received $1.25 billion in Coronavirus Relief Funds, a king’s ransom in any normal year. Any projects funded through this source must be spent by December 30 or be returned to the federal government. Of the $826 million appropriated in late June (Part 1, the Original), no one so far is clamoring to return unspent funds.

    House Speaker Mitzi Johnson kicked off the session by referencing a legislative report on State House space and telling members they would not likely be meeting as usual in the State House this January. Instead, the General Assembly will likely spread out across three additional spaces in the Capitol Complex. Draft legislation enabling the use of alternate spaces mentions the basement and various stock rooms that will allow lawmakers to physical distance and “perform [their] constitutional legislative duties.”

    If legislators didn’t miss the overcrowded, claustrophobic committee rooms before, they may truly be nostalgic for the busy and exchange-filled hallways of the State House in January.

    Families and schools across Vermont are planning for re-openings too. Just a little over two weeks ago, Governor Phil Scott announced an entirely new program to support families of school-aged children in an environment of remote learning. Twelve million dollars in CRF funds will support opening and start-up costs for these childcare “hubs.” Dozens of sites across the state will serve an estimated 7,300 students (and possibly thousands more) in kindergarten through Grade 6 starting on or about September 8. “Real time” is putting it kindly. This is government at warp speed.

    Like snowflakes, there are no two school reopening plans in the state that are the same. Each supervisory union and district has constructed a unique reopening plan. All involve some component of remote learning ranging from entirely remote to hybrid in-person approaches. Each school must be prepared to go “fully remote” if an outbreak occurs.

    Three-hundred schools have applied for a CRF program to improve indoor air quality. The uptake for the program exceeded $6.5 million originally appropriated through Efficiency Vermont. Another $5 million is likely to be funneled towards the program. Schools’ COVID-related re-opening costs have also exceeded the June CRF allocations and the House Education Committee recommended another $30 million.

    Vermont legislators have always taken pride in presenting a balanced budget even though it is not constitutionally required. The current FY 2021 budget process is relatively uncontentious and requires no deficit spending. A dismal forecast for FY 2022, and a shocking forecast of pension losses, foreshadow a very tough January for the General Assembly. And, sadly, they may be making those decisions by the dank light of a basement stockroom.

    Vermont Legislative Update Quick Links

    Treasurer announces “Very, very big increase” in unfunded liabilities

    Vermont struggling businesses to receive additional grants

    Committees focus on broadband expansion

    Act 250 Falls Apart

    Hubs program develops in record time

    Treasurer announces “Very, very big increase” in unfunded liabilities

    Vermont State Treasurer Beth Pearce appeared before the House Appropriations Committee this week and announced that the state would see a “very, very big increase” in the unfunded liabilities of the state employee and teacher retirement systems.

    Before the announcement, Vermont already faced enormous unfunded liabilities in its public employee retirement plans—a total of $4.5 billion for pension payments and health care liabilities. Surprisingly, no committee members asked Pearce to estimate how much higher that liability is likely to go in 2020.

    Although Pearce did not provide an estimate of the amount of increase in total pension fund liabilities, a document she shared with the committee showed an increase in unfunded health care payments of nearly $500 million for 2020. That is a staggering increase of 22% in only one year. Unfunded health benefits account for about half of the state’s $4.5 billion outstanding liability.

    Pearce cited a variety of reasons for the higher liability, including Covid-related expenses, increased retirements and adverse investment experience.

    Vermont’s pension boards estimate the rate of return on pension investments at 7.5%, which is among the highest in the country. The state’s actual investment returns have been far lower, which has significantly increased the amount of unfunded liability.

    Pearce told the House Appropriations Committee that the estimated rate of return will have to be lowered, and she will advocate for it to go to the lowest end of a range provided by independent actuaries. She opposed efforts by the Vermont Business Roundtable during the past legislative session to lower the estimated rate of return.

    Reducing the estimated rate of return will increase the minimum required state payments next year, which could significantly impact the budget in what is already expected to be a very challenging year.

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    Vermont struggling businesses to receive additional grants

    The House Committee on Commerce and Economic Development passed a $100 million economic recovery bill on Thursday that includes $88 million in assistance to businesses. The Scott administration had requested $133 million in funds for this effort. That proposal would have allocated $50 million for the hospitality industry, $23 million for other types of businesses, $50 million for a consumer stimulus “gift card” program, and $10 million for tourism marketing.

    The committee was given $100 million to spend by the House leadership. They reduced the marketing proposal to $4 million given the anomaly of spending money to attract visitors when the state is not fully open to out-of-state travel. The money was allocated to the Department of Travel and Tourism in the event that travel restrictions relax soon.

    The $50 million “gift card” proposal was met with great skepticism, just as a $500,000 “gift card” pilot program kicks off on September 8. Ted Brady, Deputy Secretary Agency of Commerce and Community Development, fielded questions for a vacationing Commissioner of Tourism, Heather Pelham. The committee remained unconvinced of the value of the program, and their sentiments were encapsulated in comments shared by Rep. Kimbell, “I didn’t like this idea in June, I didn’t like it in August, and I don’t like it in September. This dog won’t hunt.”

    The committee finalized the remaining distributions as follows: $5 million for ski areas (for COVID-19 compliance preparations), $3 million for workforce training to go to VTC and CCV, and combined business grants totaling $88 million. The Agency of Commerce and Community Development will continue to make eligibility decisions. The committee placed a $300,000 cap on all business grants and gave the Commissioner of ACCD the authority to request more funds on a case-by-case basis to the Joint Fiscal Committee. All funds must be spent before year-end. The committee also removed a requirement that a business show lost revenue of 50% and replaced it with a condition that the business have a “demonstrated need.”

    While many of the grant parameters are vague, the amendment still has to go before the House Appropriations, Senate Economic Development, and Senate Appropriations committees so more changes are likely. The fact that Commissioner Goldstein, Deputy Secretary Brady, and ACCD Secretary Lindsay Kurrle have been given this much latitude is a testament to legislators’ confidence in their work. That is a laudable feat of nonpartisanship.

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    Committees focus on broadband expansion

    House and Senate committees spent many hours this week discussing the need for broadband expansion—no doubt reflecting constituent frustration with inadequate service in rural areas and greatly expanded Internet needs for work and school. But with limited funding, no leadership and no legislative proposals, little is expected to happen during the legislature’s brief September session.

    Legislators increasingly have pinned their collective hopes on “communication union districts,” entities that are formed by two or more towns to issue bonds and build broadband infrastructure. In reality, the CUD’s have little funding and are run almost exclusively by volunteers. They have made little tangible progress to date.

    Lawmakers appear loathe to work with existing telecommunications providers, which have the infrastructure, expertise, staff and access to capital markets to efficiently expand broadband capacity.

    Gov. Scott has proposed $2 million in the FY 2021 budget for CUD operating expenses. The legislature may increase that somewhat, but the sums are negligible in the face of the hundreds of millions of dollars that are needed to fully build out broadband at the high speeds that lawmakers are demanding.

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    Act 250 Falls Apart

    “This is not a ‘no’ vote, this is a ‘not yet’ vote.” With those words Sen. Chris Bray, D-New Haven adjourned Friday morning’s meeting of the Senate Natural Resources Committee, effectively ending any chance of sweeping changes to Vermont’s landmark land use law this legislative biennium. Bray had just introduced a strike-all amendment to the Act 250 bill, H.926.

    Gone from the strike-all are exemptions from Act 250 jurisdiction for areas of enhanced designation: downtowns, neighborhood development areas and villages that have robust planning and permitting in place. Despite support for the exemptions – designed to prevent sprawl and encourage development in community centers – from many of the state’s environmental groups, several senators and vocal citizen groups rejected the premise that local regulations would offer sufficient protections to water quality.

    What remains in the strike-all amendment is a provision for recreational trails that are under construction while the Agency of Natural Resources works on recommendations that will ultimately bring trails under Act 250 review. The strike-all also retains language to deter forest fragmentation by adding definitions for “connecting habitats” and “forest blocks.” The reintroduction of a 2,000-foot “road rule” that triggers review did not survive the scaled down bill.

    H.926 will go to the Senate floor next week. It is likely that efforts to modernize Act 250 will begin anew in the 2021-2022 session.

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    Hubs program develops in record time

    The House Human Services and Senate Health and Welfare Committees heard from Vermont Afterschool and the Department of Children and Families on the rapidly changing landscape of the newly created school-aged childcare hubs programs.

    Twenty hubs have been approved, and many of those will be ready to operate on September 8, the first day of school. Those 20 hubs will be operating in 65 different locations and are estimated to be able to serve about 5,000 children. Another 60 hubs are in the development pipeline.

    The hub program, which was first announced a scant two weeks ago, is funded with $12 million in CRF funds. Vermont Afterschool is the lead community partner and is working with organizations and communities interested in establishing a hub to provide a safe and engaged learning environment for remote learning for kindergarten through Grade 6. The partners have been actively adapting the program as they better understand what the needs are across the state. Fees will vary in each program, but there is a cap of $200 per week. Some programs may be free for some families.

    Legislators asked the department to solve an equity discrepancy. Some existing afterschool programs are expanding their hours significantly to serve students whose schools may close for the day as early as 11:30 am. Yet they are not eligible to access the funding. Committee members requested that the department consider ways to extend access to those programs.


  • 04/26/2020 3:11 PM | Denis Bourbeau (Administrator)

    The Perfect and the Good, at War

    As the hardships that many Vermonters are enduring from the economic shutdown become clear, so too are some of the policy failures that are exacerbating the suffering. One of them is the state’s decades-long inability to provide broadband access to remote areas of Vermont, and that failure is having a disproportionate impact on Vermont’s children and low-income families.
     
    The challenge is not, as they say, rocket science. Reaching the remote corners of the state – the last mile, in telecom parlance – would require significant state and federal funding, as well as partnerships with existing providers and reasonable goals as to what qualifies for adequate service. Although the state has spent millions on broadband, it has not come close to meeting its goals.
     
    The state set up the now-defunct Vermont Telecommunications Authority in 2007 with a goal of solving the problem by 2010. The VTA inexplicably spent millions of dollars on so-called “middle mile” fiber to schools and other institutions, rather than homes, to compete with existing providers. It failed to expand access for rural residents.
     
    At the same time, a dogma took hold in the legislature that only investments in fiber optic cable (rather than copper lines, which serve the furthest reaches of the state) are worthwhile. Existing telecom providers cannot afford to invest in high-priced fiber in remote areas with few customers, so the legislature has pinned its hopes on small, thinly-capitalized and often volunteer-run organizations to build out fiber-to-the-home. Those organizations, not surprisingly, have made barely a dent in reaching unserved Vermonters.
     
    Acting on the view that only lightning-fast speeds are worthy of state money, the legislature has significantly ratcheted up the minimum required broadband speeds for companies to receive state funding. Under legislation passed last year, the minimum required speed is now 25/3 Mbps – a speed higher than most consumers are willing to pay for. To receive funds under a new loan program operated by the Vermont Economic Development Authority, the legislature required speeds of 100 Mpbs symmetrical – in essence, the speed of fiber. The legislature also has adopted a policy goal that all Vermonters have access to 100 Mbps by 2024. That would cost an estimated $1 billion.
    For comparison purposes, this article is being written with an Internet speed of 10/1 Mpbs over, gasp, wireline service, with three adults working  on-line simultaneously.
     
    There are about 20,000 residences in Vermont that still have inadequate broadband service, meaning 4/1 speeds or less. (Many with only dial-up service). Most of those households would likely be thrilled to have broadband speeds that are a fraction of the state’s fiber goal. For now though, the children in those homes are facing months without any meaningful access to education, while their parents have little or no ability to work remotely.
     
    Prior to the COVID-19 pandemic, the legislature’s cult-like focus on fiber-to-the-home was merely puzzling. Vermonters are now experiencing real hardship as a result of a policy that sets a gold standard for all, rather than an affordable and workable standard for those who need state help. The pursuit of perfect Internet access has been the enemy of the good, with failure a close ally of perfection.
     
    Warren Buffet famously said, “You only find out who is swimming naked when the tide goes out.“ The legislature has been swimming naked, with the public largely unable to see the hardships that were growing due to the failure to expand broadband coverage. The COVID-19 pandemic has brought the tide out and laid bare those hardships for all to see. 

    House has rocky start to historic remote voting session

    The House took historic action on Thursday, approving a rule change to allow legislators to vote remotely. The legislators are now using an app, Everbridge, to cast their votes from their living rooms, bedrooms, kitchen tables, and porches.


    Read more

  • 04/20/2020 10:56 AM | Anonymous

    Here is the link to the pdf that this was an excerpt from.


    Construction

    The construction sector may operate limited in-person operations in accordance with the April 17th guidance, including restricting work crews to two people per location/job and following mandatory health safety recommendations. Only construction needed to support the COVID-19 response, maintain critical infrastructure, or for the safety, sanitation and operations of residences or businesses is allowed to operate beyond this scope. As an example, replacing a failing roof, failed electrical system, or broken waterline would be acceptable. Additionally, jobsites should be left in a safe and secure manner before ceasing in-person construction. Providing services to a hospital or healthcare facility would be acceptable.

    Construction crews returning to work under the Work Safe provisions of Addendum 10 and the April 17th guidance must remember that the intent of the new guidance is to reduce the density of workers at construction sites and reduce gatherings at construction sites. Construction companies must not return to “normal” operations. The April 17th guidance allows construction to occur with no more than 2 people per location/job.  A location/job may be a single property, a single house, a floor of a large multi-story property, or a distinct separate physical location on a larger construction property. In instances where more than 2 people are working on a large project (for instance, 2 people on floor one and 2 people on floor 3), those individuals must not come into contact. Start times must be staggered to avoid gatherings, breaks should be staggered, and job meetings exceeding 2 people must not occur.

    The Agency interprets unoccupied to mean uninhabited properties.  Indoor construction should not occur in occupied properties, whether the homeowner is present or not.


  • 04/11/2020 2:07 PM | Denis Bourbeau (Administrator)

    DRM | Downs Rachlin Martin PLLC

    Order extension brings expected and dreaded consequences

    Gov. Phil Scott’s announcement today that his Stay Home Stay Safe Order will remain in place until at least May 15 brought a collective sigh of exasperation from those who were hoping to return to employment as well as those who are merely inconvenienced by the mandate to work from home.
     
    But there is also the quiet despair that is occurring in the remote corners of Vermont, and no one really knows the depth of the growing hardship.
     
    Educational leaders told the Senate Finance Committee on Thursday about the unknown impact that COVID isolation is having on Vermont’s children as they are untethered from the child care facilities and schools that have increasingly become their primary sources of support beyond education:  mental health, nutrition and physical activity.
     
    Jay Nichols, Executive Director of the Vermont Principals’ Association, said many principals have not been able to reach fully half of their students. Jeff Fannon, Executive Director of the Vermont NEA, told the committee about a teacher in Springfield who has been unable to reach her most at-risk student for four weeks and wonders if she should contact law enforcement.
     
    The poignant anecdotes personalized the abstract but massive and growing financial challenge the COVID-19 pandemic is creating. According to the legislature’s Joint Fiscal Office, the state’s education fund is already $40 million short for FY 2020, even after the state has used up $49 million in reserves. That problem is certain to get worse as many of the fund’s revenue sources dry up. 
     
    Right now, the state’s response to the COVID-19 crisis is an administrative challenge and not a legislative one. The two branches have embraced their respective roles. Gov. Scott – like so many governors nationally – has exuded confidence daily as the administration responds forcefully, backed by evolving scientific and medical judgment, with increasingly tighter restrictions.
     
    Not surprisingly, given the enormity of the crisis, the response has been bumpy at times. Many companies, for example, have struggled to understand whether they are “Essential Businesses” and able to continue operating. Conflicting statements from administration staff have contributed to the confusion. At least one industry – golf courses – has mounted a public relations campaign to reverse the order.
     
    But the administration’s strictures are making a difference. The growth rate of COVID-19 cases has fallen every day except one since March 21. Vermont is now at the low end of projections for bed needs, ICU beds and ventilators, with forecasts showing the state will remain mostly within its capacity.
     
    In the meantime, the General Assembly is moving incrementally to prepare for the longer-term legislative challenges. For the first time in history, the Senate met and voted remotely on Friday to pass a series of non-controversial, COVID-related bills.

    The House, with five times the members, is finding it more difficult to make the transition. The House has only met to allow remote voting on whether to vote remotely.

     
     A paradox of this new virtual legislative environment is that the legislature is both more transparent and less accessible. It is easier than ever for the public to watch live legislative proceedings, but far more difficult – for the public and lobbyists alike – to influence them. As committees move to more controversial topics, the difficulties of legislating remotely are likely to become more apparent.

    Working remotely, Senate passes four bills

    In an historic session, the Senate convened remotely Friday morning to unanimously pass four COVID-19 related bills.

    Read more

    Administration decisions driven by science and data

    Governor Scott is deliberate when he refers to “science and data” when he addresses the public. So it was with intention that Mike Pieciak, Commissioner of the Department of Financial Regulation, spent the week reviewing COVID-19 Modeling Data for the public. All evidence suggests that social distancing sacrifices are making a difference in saving lives and reducing hospital resource need.

    Read more

    Treasurer asks for expanded interfund borrowing

    Over the past week, the tax and spending committees in the House and Senate have digested the latest revenue numbers from the legislature’s economists, and the picture isn’t pretty. While the General Fund downgrade is less than it had been two weeks earlier, the Education Fund is significantly more in trouble than originally thought.

    Read more

  • 04/06/2020 11:29 AM | Denis Bourbeau (Administrator)

    VBRA “ Urgent” Save Your Business

         As we head into week 2 of the shutdown it is becoming more apparent that we may be shut down until May 6th. Our lobbyist is keeping us up to the minute informed as things keep changing so fast. We will insure that all vital information is passed on to you, our Members and the construction community, as soon as we can. Together as a community group we can survive this.

          Patti Komeline, our Lobbyist, sent out and email last night that there is talk that the Disaster Loan Programs may be running out of funding by Tuesday or Wednesday.

         IT IS THEREFORE URGENT THAT YOU APPLY FOR YOUR LOAN APPLICATION TODAY AND RECEIVE $10,000 IMMEDIATELY

    Please go to this NAHB link for a simple detailed explanation of the programs available to you:

    http://nahbnow.com/2020/04/how-to-obtain-an-sba-loan-and-have-it-forgiven/?_ga=2.74733522.1112528505.1586170276-331389155.1549904398

    You also may go this Vt ACCD’s user friendly link:

    https://accd.vermont.gov/sites/accdnew/files/documents/Small-Business-Owners-Guide-CARES-Act.pdf

     

    For more legal advice from DRM:

    https://www.drm.com/resources/covid-19-resource-center

    Stay Safe Everyone.  We are One Day closer to the Other side!


    Sincerely,

    Denis Bourbeau

    National Home Builders State Representative

    802-782-1019, Denis@Bhomes.org


  • 04/04/2020 12:21 PM | Denis Bourbeau (Administrator)

    DRM | Downs Rachlin Martin PLLC

    Legislature Ready to Move On, But What’s Next?

    Legislators run for office, by and large, to solve problems. Now, faced with a massive health and financial crisis unlike anything the state has experienced in a century, and having been evicted from the Statehouse, lawmakers are struggling to define their role.

    The initial response was swift, as the legislature quickly passed several emergency bills that have been signed into law, with a few others soon to follow. But if this week is any indication, as lawmakers move beyond the initial emergency bills, the next phase is going to present some  major challenges.

    First, there is the logistical problem of moving the entire bill-making process online. In normal times, any given bill has thousands of touch-points as it moves through the legislative process. Lawmakers have hundreds of interactions in rapid-fire sequence on dozens of issues during the course of each day.

    Most of those interactions are gone now, replaced by digital communications that are, ironically, vastly less efficient. It’s like running a fire hose through a straw – it takes a lot longer, and in the end not much makes it through.

    Then there is the plodding, yet disjointed structure of committee meetings conducted over Zoom and YouTube. Clogged Internet bandwidth and forgotten mute buttons grind down the pace of discussions. This week, one committee was victimized by the newfound outlet for sociopathy that isZoom bombingwhen pornography suddenly appeared onscreen during a discussion about agriculture.

    And there is the fundamental question of what is the legislature’s role in responding to a pandemic. Most committee hearings this week were spent hearing reports from the administration on what they are doing to respond. The governor and his staff have received widespread praise for their response as the virus disrupts nearly every aspect of life in Vermont. But as they were called away from the front lines of disaster response to provide reports to committees, some staff members gently pushed back.

    Lawmakers were also brushed back by administration staff as they took on the role of constituent service. Many businesses have looked to their legislators for help as they sought exemptions to continue operating under Gov. Phil Scott’s sweepingStay Home/Stay Safe Order. With legislators advocating for a loosening of the rules for some businesses, Agency of Commerce and Community Development staff – who have been pulled from their traditional duty to advocate for business development – gently chastised lawmakers and asked for help in keeping Vermonters safe.

    Finally, there is the question of remote voting. Vermont’s tradition-bound Senate has not even allowed electronic devices to be present in the Senate chamber, so it has, unsurprisingly, moved cautiously to allow voting to occur outside the Statehouse. Both bodies are expected to approve some version of remote voting next week.

    The legislature, like everyone else, is making up new rules as they go.

    Don’t bank on it; federal grant funds may run dry

    Chris D’Elia, President of Vermont Bankers’ Association, told the Senate Committee on Economic Development, Housing and General Affairs on Friday that the new federalPayroll Protection Programmay reach its capacity next week, less than a week after opening the application process.

    Read more

    Legislature continues to grapple with unemployment insurance inequities

    Unemployment benefits for Vermonters, recently expanded underH.742in response to COVID-19, are now significantly higher with a supplemental federal benefit of $600 per week for each claimant.

    Read more 

     


  • 04/02/2020 5:35 PM | Denis Bourbeau (Administrator)

    During Governor Scott’s press conference today, Vermont’s Commissioner of Health, Dr. Mark Levine, gave the latest COVID-19 patient data: As of March 31 there were 28 new positive cases, for a total of 321. There is a total of 15 deaths. Dr. Levine also reported on the growing evidence that the COVID-19 virus can be present for 48 hours before symptoms can appear. Anyone concerned about contact risk should work back over a 48 hour period to determine exposure. Levine also reported that 12% of tested cases were coming back positive.

     Governor Scott asked for Vermonters with medical experience - nurses, pharmacists, EMSs, physician assistants, veterinarians, mental health workers, etc. - to register at Vermont.gov/volunteer. This is so the state can be ready if and when critical needs arise. People with experience in the fields of childcare, grocery worker, public works professional, drivers, etc., can register to volunteer as well.

    Secretary of the Agency of Commerce and Community Development, Lindsay Kurrle, encouraged businesses to apply for both the Economic Injury Disaster Loan program and the Payroll Protection Program offered under the CARES Act.

    ·        The EIDL is a low interest loan Administered by the SBA. Applicants can also request a $10,000 advance that does not have to be repaid, even if the loan application is denied.

    ·        The PPP is a loan administered by local lending institutions and backed by the SBA. Employers are eligible to receive 250% of average monthly payroll costs for up to eight weeks. The loan can be forgiven if the employer uses the funds to keep paying wages and salaries of employees. In addition to wages the funds can be used for other operational expenses such as rent and utilities. Additional details and guidance are still forthcoming.

    Kurrle also revealed an updated COVID-19 resource center at ACCD.VT.Gov., divided into sections with for business, individuals and communities.

    Acting Commissioner of Taxes, Michael Harrington, said that the department had received over 30,000 claims so far – more than in a typical year – and expected new reports tomorrow to push that number over 40,000. He acknowledged the frustration of many people trying to get through on the phone and asked for patience. With regards to the supplemental $600 federal unemployment benefit, Harrington reminded listeners that if you filed taxes in 2018 or 2019 there was nothing further you needed to do other file weekly claims as usual. Funds will be deposited automatically into your bank account or a check will be mailed.

    Notes:

     Dr. Levine, Commissioner of Health - I have five bullet points:

    • Latest data, as of March 31 - 28 new cases. Up to a total of 321. 
      • [Holding chart]  Ignore the last three days. Grey and magenta are the negative results. Blue equals positive results. 
      • The yellow/green trend is the important part - A distinct upward direction of all tests done that are positive. Now in the 12% range.
    • Total as of yesterday is 15 deaths. Two involved elderly in group living situations. The other two were in the hospitals.
    • What happens when there's an outbreak in a facility?
      • We separate people who are cases from those who aren’t. Appropriate isolation and contact work.
      • Our response teams have reported to eight total facilities. We’re behind many states in terms of the number of facilities that have had a case.
    • I want to let the public and colleagues know that we do want testing in a much more expansive way.
      • We want to be able to provide surveillance of the entire population. 
      • People with symptoms will still be prioritized
    • CDC info on exposure risk.
      • One can transmit in the asymptomatic, or pre-symptomatic state. There’s growing evidence that there's about a 48 hour period before symptoms appear during which time you could transit.
      • If you're concerned about contact with someone who’s sick, work back 48 hours to determine your exposure.
      • Keep practicing social distancing.
      • The point is there are people out there who aren't trying to harm you but might be transmitting without knowing it.
      • Don’t go out and buy masks, but stay vigilant.

     Gov. Scott - 

    • Thanks to Vermonters for the way they’re dealing with this crisis to slow the spread.
    • The simple act of staying home is making a huge difference.
    • With all that you are doing, it’s difficult to ask for more, but that's what we need to do:
      • We need volunteers for a medical work reserve corp.  Please go to Vermont.gov/volunteer and register if you have medically related experience so we can begin a list of resources.
    • What’s available for economic relief:
      • Expanded UI
      • Help for those who might not otherwise qualify for UI
      • Cash for those who need it most for food and other essentials
      • Help for small businesses.
    • Thanks to Welch and Sanders, but especially Leahy as vice chair of Appropriations.
    • We’ll continue to flatten the curve while building.

     Lindsay Kurrle, Secretary of the Agency of Commerce and Community Development -

    • This is a day to day, hour to hour situation for our business community.
    • We continue to answer questions while developing business support tools.
    • Our hardest days may lie ahead.
    • We’ve rolled out an updated resource center at ACCD.VT.Gov
    • Direct one-time payments of $1200 to individuals who earn up to $75,000.
      • Plus $500 for each dependent. 
      • Will be deposited automatically per last tax filing information, or mailed.
    • We’re encouraging every business to apply for EIDL. Apply and then request an advance of $10k. Reach out directly to the SBA. Or to your RDC.
    • Also take advantage of PPP
      • Up to $10mm
      • SBA will forgive the first 8 weeks of expenses.
    • Get in touch with mortgage lenders now if you're experiencing financial hardship due to COVID-19
    • Also, a small business task force.
      • Charged with creating economic tools
    • We know we’ll need to do more.

     Michael Harrington, Acting Commissioner of Labor

    • We recognize there’s a massive number of individuals doing all they can to contact us. 
    • As we know, UI is not the easiest to understand, so a general overview. Please be as patient as possible. Continue to be resilient in trying to get through.
    • Perspective
      • In the past two weeks we’ve processed more clams than we do in a year
      • At least 30k, possible 40k.
      • Updated info tomorrow.
      • Our old system is pushed to the max. Not meant for this level.
      • We’ve tripled our staff on the phone lines.
      • Added as many electronic forms online as we can.
      • We’ve expanded benefits to people impacted directly or indirectly.
      • From federal perspective:
        • Lots of questions about the additional $600. There’s nothing further you need to do other file weekly claims as usual. 
        • Once the initial claim is done, you will file each week for the week prior.
        • The Maximum benefit of 26 weeks has been expanded by an additional 13 weeks.
      • We’re standing up a totally separate UI system for the self-employed.
    • I want to ensure that just because there’s a delay, it will not impact your eligibility or benefits.

     Rep. Peter Welch -

    • We’re doing what we have to to be safe. 
    • The consequence of that is that we turned off the economy.
    • Today is April 1: rent is due, bills are due.
    • The role of Government is to help citizens comply with social distancing and recognize the financial hardship. It's the role of the federal government now to be that backstop. It’s the only entity too capable of handling this,
      • $1200 check for income of $75,000 or less. If you filed taxes last year you’ll get an automatic deposit into your account.
      • Thousands of people have been laid off. $600 of supplemental unemployment on top of VT UI. For up to 4 months.
      • Small business - 
        • Can apply for a $10k EIDL grant. 
        • PPP allows a business to seek up to 250% of monthly payroll, if they use it to keep employees paid, then they don’t have to pay it back.
    • We’ll get through this by working together.

     Andrew Brewer | Government Relations Specialist
    Downs Rachlin Martin PLLC | Business Sense · Legal Ingenuity
    52 State Street | Montpelier, VT 05602-3176
    Cell: 802-279-0838 | Direct: 802-225-5514

    abrewer@drm.com | www.drm.com

  • 03/21/2020 12:56 PM | Denis Bourbeau (Administrator)

    DRM | Downs Rachlin Martin PLLC

    The Virtual Statehouse

    In a blink of an eye, everything changed.
     
    With the Vermont State House closed for the week, and likely for months longer, Vermonters began to adapt, as they have for centuries in the face of previous disasters.
     
    Numerous Senate committees, a joint leadership committee and the entire House held daily conference calls, all open for the public to listen. They were filled with the usual hiccups, annoyances and amusements that accompany conference calls – background noise, “can you hear me now?” and snide comments not intended to be heard. But mostly they were focused and serious efforts to address the state’s – and nation’s – worst health and economic crisis in generations.

     
    It was all things COVID-19 in every call. Hospitals statewide are bracing for a tsunami of patients with a shortage of beds, emergency equipment and staff. In northern Vermont, a small hospital is already losing one million dollars a week due to the cancellation of elective surgeries. In southern Vermont, two EMS volunteers are self-isolating due to possible exposure but cannot return to their homes.

    Vermont’s court system is under enormous stress, and there is a call from the ACLU to release prisoners to prevent cruise-ship conditions in corrections facilities when the wave hits.
     
    Vermonters are being laid off in historic numbers. The Department of Labor usually processes 400 unemployment claims each week; there were 4000 processed through the departments new online form on Wednesday alone. Fully one-half of the state’s 21,000 food service employees will soon lose their jobs.
     
    The state’s general fund is facing a $200 million loss in the next three months – a big number for a very small state.
     
    With all schools and child care centers closed, the state is in the midst of a child care crisis. Who takes care of the children of essential workers? And which workers are essential? And of course, what about the children of parents who have to work away from home?
     
    And there was this, only somewhat more pedestrian problem:  grocery stores may be out of toilet paper until June due to hoarding.
     
    Lawmakers struggled with these and many other issues this week. We have included summaries in this Legislative Update of the major issues discussed.
     
    Discussing issues is one thing; voting is entirely another, and that is the next puzzle lawmakers will have to solve.
     
    The Senate returns on Tuesday consider a House-passed emergency unemployment compensation bill, H.681. The Senate Rules Committee held a call today to help senators figure out how to reconcile voting and social distancing when they return.

    According to Secretary of the Senate John Bloomer, social distancing guidelines could be met by allowing senators to spread out to various offices and hallways with speakers, with a prolonged roll call that allows them to enter the chamber sequentially. That will probably work for the 30-member Senate, but how do the 150 members of the House gather to vote? That remains to be answered. 
     
    Legislative committees apparently have greater constitutional latitude to vote remotely. Committees may be allowed to cast votes by telephone, with roll calls required when votes are not unanimous.
     
    Five House committees will begin meeting next week, perhaps through videoconferencing.
    These committees will first focus solely on COVID-19 response legislation, but before long they are likely to return to the panoply of other bills that were pending when they left Montpelier. That will create significant challenges for anyone on the outside who has an interest in what passes. 
     
    So far, legislators have responded impressively in providing public access to their discussions. But as the issues become more complex and lawmakers begin to vote, the temptation will grow to deliberate outside the public’s view. One Senate committee has already discussed suspending the state’s Open Meeting Laws during the emergency period.
     
    DRM will be following the virtual deliberations closely and providing regular updates. Please contact anyone on the DRM team with any suggestions as to how we can improve our services in this new environment.

    State facing major revenue losses, but has reserves in place

    The Senate Committee on Finance heard testimony on major potential fiscal implications to the state, and property tax concerns for municipalities, due to the COVID-19 virus.

    Read more

    Open Meetings Law amendments would allow for meetings in the virtual world

    The Senate Committee on Government Operations deliberated this week on temporary amendments to Vermont’s Open Meeting Laws to allow for deliberations that are consistent with health and safety protocols required by COVID-19. The amendments would expire once the crisis subsides.

    Read more

    Unemployment insurance filing is trending

    The Senate Economic Development, Housing and General Affairs Committee began considering changes to a House-passed emergency unemployment compensation law, H.681, which expands benefits for employees affected by the COVID-19 outbreak.

    Read more

    Families First Act signed by President

    In response to COVID-19, H.R. 6201 quickly moved through Congress and was signed by President Trump this week. This legislation guarantees free COVID-19 testing, establishes paid leave, enhances unemployment insurance, expands food security initiatives and increases federal Medicaid funding.

    Read more

    Lawmakers respond to school and childcare facility closings

    Gov. Phil Scott ordered dismissal of preK thru 12 schools starting Wednesday. The order specified that during the initial two-week period of school closure, the districts would focus on developing new systems of food pickup and delivery, create continuity  of education plans, and provide continuity for students who struggle and special education.

    Read more

    Senate Health reviews COVID-19 response proposal

    The Senate House and Welfare Committee met remotely this week to review H.742, a bill passed by the House late last week, and consider what needs to be added to support the health care system in responding to COVID-19.

    Read more

    Green Mountain Care Board eases regulations to regulated entities

    In response to the COVID-19 crisis, the Green Mountain Care Board took action on Wednesday  that gives hospitals flexibility from regulatory requirements to focus on operations and crisis response.

    Read more

    Governor allows take-out beer and wine

    On Thursday, Gov. Phil Scott loosened Vermont’s restrictive, Prohibition-era alcohol laws by issuing a Gubernatorial Directive permitting “to-go” sales and delivery of beverage alcohol with the purchase of a meal, as well as the delivery of alcohol products by licensed retail stores.

    Read more

    Full House and five House Committees to meet next week, others to follow

    The Vermont House will meet next week as a whole and in various committees, beginning with a remote “Caucus of the Whole” at 1:00 p.m. on Monday. Members.

    Read more

  • 03/21/2020 12:53 PM | Denis Bourbeau (Administrator)

    Coronavirus (COVID-19) Legal Resources for Business

    Keep your business in the know during the COVID-19 outbreak.

    With information concerning the Coronavirus (COVID-19) rapidly evolving, DRM is committed to providing you relevant and timely guidance on how to navigate this challenging time. We will update this site regularly as new information emerges. For immediate assistance or questions on a particular topic, please contact a member of our team. On this page, you will find answers to frequently asked questions, as well as helpful links.

    BREAKING NEWS

    • On Friday, March 20, Vermont Governor Phil Scott held a press conference outlining the current initiatives the State of Vermont has taken so far to help alleviate the impact of COVID-19 (coronavirus). See our COVID-19 VT Legislative Update page for more.
    • On March 20, 2020, Treasury Secretary Steven Mnuchin announced in a tweet that the April 15th tax filing deadline has been extended to July 15th. Full details here.
    • On March 18, 2020, Congress approved the Families First Coronavirus Response Act (“FFCRA” or the “Act”), an emergency relief bill providing financial support to those impacted by the COVID-19 pandemic. It is anticipated the new law will take effect within 15 days, or on April 2. See the full write up here. 

    FREQUENTLY ASKED QUESTIONS

    Force Majeure

    Employment Matters

    Business Interruption Insurance

    Vermont Legislative Updates

    Cyber Security / Remote Work

    Intellectual Property

    Tax Considerations

    Food and Beverage

    Small Business Assistance

    STATE AND FEDERAL RESOURCES

    Vermont Government & Court Resources

    New Hampshire Government & Court Resources

    Federal Government Resources

    HELPFUL LINKS

  • 03/19/2020 11:51 AM | Denis Bourbeau (Administrator)

    DRM | Downs Rachlin Martin PLLC

    3.18.20

    Senate Economic Development

    The committee reviewed H.681, (the Vermont Bill) a bill focusing on unemployment insurance as it pertains to COVID. Here is a summary of the bill. This bill still needs to pass the state senate.

    Damien Leonard, Legislative Council, did an overview of UI as Cameron Wood of DOL wasn’t able to call in due to his workload. UI is a very complex system and financed by a payroll tax that is based on employers’ experience with UI. A high ratio of layoffs relative to payroll means the business will have a higher tax rate. This builds a pool of funds that can be drawn on when needed.

    Currently there is $500 million in the UI Trust Fund. Projections are that 60-70% of this funds will be drawn down in a recession. Our fund is in very good shape which is unique in the US.

    To qualify one needs to have been working for at least 2 quarters in the last 5 quarters and hit a minimum income threshold. If one becomes unemployed or under-employed and is able and available to work and is actively seeking work then they are qualified for UI.

    If the employer is intending to bring the workers back the DOL may waive the requirement that the employee look for work.

    UI benefits cover about 50% of income with a statutory cap of $513/week.

    This week the number of people filing is rapidly growing. These claims could have an adverse impact on tax rates for employers unless the law is changed for COVID related claims.

    Testimony moved on to:

    Michael Harrington

    Interim Commissioner of Labor

    There has been a drastic spike in initial claims. There is a bottleneck in initial claims filings. In the last 48 hours the department as increased their call center staff from 10-12 to 25-30.They will monitor to see if they need more people. The department has prepared an on-line form that is up for the public right now. This isn’t a permanent solution. Usually there are about 400 claims a week. Yesterday alone there were 500 claims. 21K employed in food service industry and it is anticipated that half will be filing.

    The department prefers people to file the online form but if they need help by phone:

    1-877-214-3330 – for initial claims

    1-877-214-3332 – for general assistance

    1-802-828-4344 – for employers.

    Harrington went on to discuss the federal bill, HR6201. Here a summary. If Congress passes the bill it will provide flexibility that the state currently doesn’t to pay benefits and relieve employers of charges.

    Anyone who is laid off will be eligible for benefits. As long as they are laid off for less than  10 weeks they don’t need to do a work search. They are working to expedite claims so there is no waiting period – current delay is due to a number of systematic steps that need to occur. They are working to shorten that time

    Sirotkin asked if there was more the Senate could add to H.681. Harrington said no but the committee will discuss this further tomorrow. Some states are trying to expand UI benefits to sole proprietors and independent contractors and the self-employed. They aren’t contributed into the fund and we have to consider the fund’s sustainability.

    Committee is looking to tweak the bill and will meet tomorrow morning at 10am.


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