Statehouse Activities of Interest

OPR Registration

The Office of Professional Regulation is still working on their draft. We are going to meet with Chris Curtis this week to remind him of our concerns about more requirements being added to this bill.

This Wednesday, the Senate Economic Development Committee will hear from Lauren Hibbert and Gabe Gilman, of OPR on “Home Improvement Contracting”. We will coordinate with them in advance to see if they are hoping to make the case for a committee bill with broad buy in after making sure they have made the case for light regulation. 

Act 250 

Jim Bradley will be meeting with Chris Cochran from the Agency of Commerce on Tuesday to review the Administration’s priorities in the Act 250 Report. 

Minimum Wage Bill 

S.23  proposes to increase the minimum wage so that it reaches $15.00 per hour by January 1, 2024.

This bill is being considered in Senate Economic, Housing and General Affairs. A similar bill was vetoed by the Governor last year. S.23 will most likely move easily through both Chambers towards passage. The Governor will have to struggle to pick up some Democrats to support another veto. 

Paid Family Leave 

The legislative leaders’ counter to the Governor’s opt-in proposal that we detailed in last weeks’ update increases the benefits they were looking to offer last year. This proposal is a mandatory .93% payroll tax (to be split between employer and employee) and will offer 100% of wage coverage for up to 12 weeks per year. We anticipate that members of your organization will want to testify on this issue. 

Standard Contracts and Waivers 

S.18 proposes to create a rebuttable presumption that certain contractual terms are substantively unconscionable when included in certain standard-form contracts. 

This bill could affect you if your business requires anyone to sign a waiver of liability. This is of particular concern to the outdoor industry, but we wanted HBRANV to be aware of it.  

Budget Address 

The Governor delivered his Budget Address on Thursday. The text of the speech can be found here.

Budget Address subjects that are of particular interest to Home Builders and Remodelers: 

Labor Force 

“Our biggest threat is our declining labor force. As our working-age population continues to decline, we simply need more people helping to pay the bills.

Together, we have an opportunity to change this, with polices that better prepare students for a career, keep more of our kids after graduation, provide training for Vermonters so they can get a good job and attract new workers and new families to join our communities.”

Act 250

“We can enhance our high environmental standards and breathe new life into our downtowns and village centers. Specifically, let’s give communities the opportunity to raise the bar when it comes to planning and environmental protection. And when they meet these new standards, let’s reward them and encourage growth by exempting them from Act 250.”

Water

“It’s not an exaggeration to say that the 20-year, $2 billion project ahead of us is as much a major infrastructure program as it is essential environmental policy.

That’s why my budget fully funds the Clean Water Board’s recommendation. This includes about $15 million for the State’s Clean Water Fund, over $12 million in capital funds and $1 million in transportation dollars. Combined with over $19 million in federal funds, all told, this budget dedicates nearly $48 million to clean water projects.”

Affordable Housing

“Eliminate land gains tax to unlock older housing stock to renovation and re-development.

Next, let’s make sure these updated properties are efficient. Eighty percent of our housing stock is at least 40 years old, and nearly half of that is 80 years old. We know the cost to heat these older homes can push them out of reach for some. So, my budget includes $1 million to restore these units if weatherization is part of the project.   and increasing the Downtown and Historic tax credit to $2.6 million.”

Gov Paid Family Leave

“First, we can launch more quickly, more affordably and more reliably than if the State had to create the program from scratch. Second, it ensures we aren’t placing the burden of startup costs, or the risk of underfunding and insolvency, on taxpayers.  And third, we’re not mandating another cost on our employers and employees for an expense they may not be able to afford.

I understand your concerns that a voluntary approach might not have a big enough pool to sustain a program. That’s why our proposal places all eligible state employees from both states into the plan, creating a large and diverse pool overnight. And my budget includes funding to offer this coverage to our state employees if we move forward.”

Workforce and Moving to VT

“This year, my budget includes a total of $2.5 million to identify those most likely to consider moving to Vermont, tell them our story and make it easier for them to get here. It includes funding for relocation support to really sell Vermont by helping those who want to move here find a great job, housing and a community they’re drawn to, in the regions and job sectors that need them most.”

General

The Statehouse is beginning to heat up during the second week of the legislative session and bills are being introduced at a breakneck pace. As of Friday, January 18^th, there were 56 bills introduced in the House and 47 in the Senate. So far there are multiple bills about Act 46 mergers (and about the undoing of Act 46), and the first three of four proposed amendments to the Vermont constitution have been released. Proposals of amendment can be initiated every four years by the Senate.

• 1.       A proposal must be approved by two/thirds of the senate (20 votes) before being sent to the house, where a majority vote is required for passage.
• 2.       Successful proposals are then taken up by the succeeding legislature, after they have been “instructed” by their constituents during the preceding election.
• 3.       The proposal must then survive majority votes of the Senate and House, before being placed before the voters for ratification through a referendum.

Amending the state’s constitution is a lengthy, complicated process that is meant to withstand the vicissitudes of political fortune.

Home Builders and Remodelers Update

The OPR Registration Bill

We have been in contact with the Office of Professional Regulation and they are still working on finding a sponsor for their bill. As soon as they have done that they will share their draft. At that point we will arrange to meet with Chris Cole, Lauren Hibbert and the bill’s sponsors to ensure that they understand that this is meant to be a very limited registration requirement.

Act 250

We met with people from the Governor’s Administration to review their priorities in the Act 250 report. They believe Home Builders and Remodelers will support their efforts and we’ll have more details in the following weeks.

Here is their Act 250 Handout

Act 250 Modernization

What: The Natural Resources Board along with the Agencies of Commerce, Agriculture, Transportation, and Natural Resources have been working with the Act 47 (“Act 250 at 50”) Commission to evaluate opportunities to improve the Act 250 process and outcomes for Vermont. We look forward to working with the legislature to ensure that over the next 50 years Act 250 supports Vermont’s economic, environmental, and land use planning goals.

Why: The following recommendations, which were provided to the Commission, are of critical importance to protect Vermont’s environment while facilitating economic activity and development in suitable locations. Overall these recommendations are intended to focus Act 250’s attention on the locations and projects where environmental protection is most important and to promote development in other areas.

How: Key policy decisions to focus on during the 2019 session:

• Encouraging development in the State’s existing designated centers through the creation of an enhanced designation process that would remove Act 250 jurisdiction within the designated center provided the municipality can demonstrate that it has adopted municipal flood hazard planning and river corridor protections for the entire municipality, design review standards (including historic preservation), wildlife habitat protections, and coordinated capital investments .

• Creating a process to subject unique natural resource areas, such as contiguous blocks of primary agricultural soils, high-value forest blocks, and high-value connectivity habitat to Act 250 jurisdiction regardless of whether a project in such area would trigger jurisdiction under existing thresholds.

• Including impacts on forest blocks and connecting habitat in the review process under Act 250 Criterion 8 to address the issue of forest fragmentation, while giving due consideration to the positive effect of enterprises that add value to forest-derived commodities.

• Updating Act 250 Criterion 1(D) (floodways protections) for consistency with the State’s Flood Hazard Area and River Corridor Protection standards, eliminating potential confusion and ensuring that Act 250’s standards align with best practices.

• Clarifying the appropriate use and reliance on other state permits as evidence that various Act 250 criteria have been satisfied, to streamline and make the process more predictable.

• Clarifying the circumstances in which an Act 250 permit application fee waiver and/or partial refund are warranted.

• Recommending changes to support rural industrial park development with a simplified master plan process for obtaining construction approval and reduced fess when some impacts have already been reviewed.

• Allowing flexibility, when appropriate, in the hours of operation of value-added forest product businesses to respond to the logistical challenges these operations face due to climate change.

• Clarifying the circumstances in which an Act 250 permit or permit amendment is needed for recreational trails to ensure Vermont’s recreation economy remains compatible with environmentally responsible development.

• Exempting federal aid transportation projects, which require significant federal review and oversight, from Act 250 review.

• Updating Act 250 to recognize that modern Vermont farms increasingly rely on on-site agritourism and direct-to-customer businesses to remain economically viable, and that these activities should not trigger Act 250 jurisdiction.

Paid Family Leave

The governor announced his plan to explore a voluntary paid family leave program that would be a joint venture with the state of New Hampshire. Legislative leadership, Senate President Pro Tem, Tim Ashe, and House Speaker Mitzi Johnson held a press conference coming out against the proposal. They plan to introduce a mandatory paid family leave bill that is funded through a payroll tax.

We met with a group of allies and heard from the Governor’s staff who answered questions about the details of the Governor’s proposal. This is in early planning stages but the highlights are as follows:

• ·         The state will provide, for state employees, 60% of their salaries for up to six weeks for paid family leave and they can use this benefit for themselves as well.
• ·         Businesses enrolling their entire staff would get a discount on premiums. If they have more than 20 employees they would get the state rate, estimated to be about $275/per employee per year.
• ·         If a business doesn’t participate, individual employees would be able to purchase coverage for themselves at a higher rate.

This proposal was immediately met with opposition from the Legislature and from the State Employee Association. So there will be a lot more on this issue to follow.

This session brings forty new representatives in the House and five new Senators.  House Speaker Mitzi Johnson shook up committee assignments quite a bit to balance the "challenges and opportunities" of having so many new representatives as well as five committee chair slots to fill. To top that off, three moderate Republicans in the House lost seats causing some shifting around to fill necessary seats in important money committees.

On Thursday Governor Scott gave his Inaugural Address laying out his priorities, while making a plea to the legislature to work collaboratively and set an example for the country. He said that he would be laying out a plan to fund clean water through an existing, sustainable source (meaning he does not want to raise new taxes). There will be a proposal to make health insurance more affordable for young people. Governor Scott proposes to use money from the Volkswagon settlement to subsidize electric vehicle purchases in the state. High speed internet statewide will also be a priority. Details for these efforts will be outlined in the Governor’s budget address.

Act 250 Activity

We will be following this closely as we are being told that the smaller contractors may be more affected than most in upcoming initiatives.  No testimony was taken this week that would pertain to HBRANV. We have a meeting next week with the Administration to hear their thoughts. The Governor alluded to their proposal in his speech.

“Act 250 was created nearly 50 years ago to address a rapidly growing state. At that time, there wasn’t the regulatory oversight to deal with the population expansion brought on by the baby boom and the interstate highway system.

But those circumstances no longer exist.

That’s why I’ll propose reforms to modernize Act 250 in a way that expands growth in our struggling downtowns while continuing to protect the environment.

We can and must do both.

This proposal builds on work we did together last term to modernize regulation and support the development of affordable housing in our downtowns and growth centers. This year, we can do even more to build stronger communities by updating Act 250 and encourage more compact development while preserving our working lands and rural character.”

Link to Introduced Bills

Thirty bills have been introduced in the House this week. The senate hasn’t published their list yet.

https://legislature.vermont.gov/bill/introduced/2020

 Senate Standing Committees (New Chairs are highlighted)

 Agriculture

Chair, Bobby Starr (D-Orleans)

Vice-Chair Chris Pearson (P/D-Burlington)

Anthony Pollina (P/D-Washington)

Brian Collamore (R-Rutland)

Ruth Hardy (D-Addison)

 Appropriations

Chair, Senator Jane Kitchel (D-Caledonai)

Vice-Chair, Alice Nitka (D-Windsor)

Bobby Starr (D-Orleans)

Dick McCormack (D-Windsor)

Richie Westman (R-Lamoille)

Tim Ashe (D/P – Burlington)

Economic Development, Housing and General Affairs

Chair, Michael Sirotkin (D-Burlington)

Vice-Chair Alison Clarkson, (D-Windsor)

Becca Balint (D-Windham)

Randy Brock (R-Franklin)

Cheryl Hooker (D-Rutland)

Education

Chair, Phil Baruth (D/P Burlington)

Vice-Chair Deb Ingram, (D-Burlington)

Ruth Hardy (D-Addison)

Jim McNeil (R-Rutland)

Corey Parent (R-Franklin)

Andrew Perchilk (D-Washington)

Finance

Chair, Anne Cummings, (D-Washington)

Vice-Chair, Mark MacDonald (D-Orange)

Michael Sirotkin (D-Burlington)

Brian Campion (D-Bennington)

Becca Balint (D-Windham)

Randy Brock (R-Franklin)

Chris Pearson (D/P Burlington)

Health and Welfare

Chair, Ginny Lyons (D-Burlington)

Vice-Chair, Richie Westman (R-Franklin)

Anne Cummings (D-Washington)

Dick McCormack (D-Windsor)

Deb Ingram (D-Burlington)

Institutions

Chair, Joe Benning,

Vice-Chair John Rodgers (D-Orleans),

Dick Mazza (D-Grand Isle)

Ginny Lyons (D-Burlington)

Cheryl Hooker (D-Rutland)

Judiciary

Chair, Dick Sears (D-Bennington)

Vice-Chair, Alice Nitka (D-Windsor)

Jeanette White (D-Windham)

Joe Benning (R-Caledonia)

Phil Baruth (D/P- Burlington)

Natural Resources Energy

Chair, Chris Bray (D-Addison)

Vice-Chair, Brian Campion (D-Bennington)

Mark MacDonald (D-Orange)

John Rodgers (D-Orleans)

Corey Parent (R-Franklin)

Transportation

Chair, Dick Mazza (D-Grand Isle)

Vice-Chair, Tim Ashe (D/P-Burlington),

Jane Kitchel (D-Caledonia)

Andrew Perchlik (D-Washington)

Jim McNeil (R-Rutland)

House Standing Committees

Agriculture

Chair, Carolyn Partridge (D-Windham)

Vice-Chair, Rodney Graham (R-Williamstown)

John Bartholomew (D-Hartland)

Tom Bock (D-Chester)

 Charen Fegard (D-Enosburg Falls)

 Terry Norris (I-Shoreham)

John O’Brien (D-Tunbridge)

Vickie Strong (R-Albany)

Appropriations

Chair, Kitty Toll (D-Danville)

Vice-Chair, Mary Hooper (D-Montpelier)

Peter Fagan (Rutland City)

Chip Conquest (D-Newbury)

Marty Feltus (R-Lyndon)

Bob Helm (R-Fair Haven)

Diane Lanpher (D-Vergennes)

Linda Myers (R-Essex)

Maida Townsend (D-South Burlington)

Matt Trieber (D-Rockingham)

Dave Yacovone (D-Morristown)

Commerce and Economic Development 

Chair, Mike Marcotte (R-Coventry)

Vice-Chair, Jean O’Sullivan (D-Burlington)

Charlie Kimbell (D-Woodstock)

Bill Bancroft (R-Westford)

Jim Caroll (D-Bennington)

Lynn Dickinson (R-St. Albans Town)

Matt Hill (D-Wolcott)

Stephanie Jerome (D-Brandon)

Emillie Kornheiser (D-Brattleboro)

Zach Ralph (P-Hartland)

Tristan Toleno (D-Brattleboro)

Corrections and Institutions 

Chair, Alice Emmons (D-Springfield)

Vice-Chair, Butch Shaw (R-Pittsford(

Terry Macaig (D-Willistno)

Sara Coffey (D- Guilford )

Carl Demrow (D-Corinth)

Jill Krowinski (D-Burlington)

Felichia Leffler (R-Enosburgh)

Marcia Martel (R-Waterford)

Mary Morrissey (R-Bennington)

Linda Joy Sullivan (D-Dorset)

Curt Taylor (D-Colchester)

Education 

Chair, Kate Webb (D-Shelburne)

Vice-Chair, Larry Cupoli (R-Rutland City),

Peter Conlon (D-Cornwall)

Sarita Austin (D-Colchester)

Lynn Batchelor (R-Derby)

Caleb Elder (D-Starksboro)

Dylan Giambatista (D-Essex)

Kathleen James (D-Manchester)

Jay Hooper (D-Randolph)

Chris Mattos (R-Milton)

Casey Toof (R- St. Albans)

Energy and Technology 

Chair, Tim Briglin (D-Thetford )

Vice-Chair, Laura Sibilia (I-Dover)

Robin Chesnut-Tangerman (P-Middletown Springs)

Scott Campbell (D-St. Johnsbury)

Seth  Chase (D-Colchester)

Mark Higley (R-Lowell)

Avram Patt (D-Worcester)

Heidi Scheuermann (R-Stowe)

Mike Yantachka (D-Charlotte)

General, Housing and Military Affairs 

Chair, Tom Stevens (D-Waterbury )

Vice-Chair, Chip Troiano, (D- Stannard)

Diana Gonzalez (P-Winooski)

Matt Birong (D-Vergennes)

Marianna Gamache (R-Swanton)

Mary Howard (D-Rutland City)

John Killacky (D-South Burlington)

Emily Long (D-Newfane)

Randall, Szott (D-Barnard)

Tommy Walz (D-Barre City )

Government Operations 

Chair, Sarah Copeland-Hanzas (D-Bradford)

Vice-Chair, John Gannon (D- Wilmington)

Rob LaClair (R-Barre Town)

Nelson Brownell (D-Pownal)

Marcia Gardner (D-Richmond)

Jim Harrison (R- Chittenden)

Bob Hooper (D-Burlington)

Warren Kitzmiller (D-Montpelier)

Mike Mrowicki (D-Poultney)

John Palasik (R-Milton)

Health Care 

Chair, Bill Lippert (D-Hinesburg)

Vice-Chair, Anne Donahue (R-Northfield)

Lori Houghton (D-Essex)

Annmarie Christiansen (D-Weathersfield)

Brian Cina (P-Burlington)

Mari Cordes (D-Lincoln)

David Durfee (D-Shaftsbury)

Ben Jickling (I-Randolph)

Woody Page(R-Newport City)

Lucy Rogers (D-Waterville)

Brian Smith (R-Derby)

Human Services 

Chair, Ann Pugh (D South Burlington)

Vice-Chair, Sandy Haas (P-Rochester)

Topper McFaun (R-Barre Town)

Jessica Brumsted (D-Shelburne)

James Gregoire (R-Fairfield)

Logan Nicoll (D-Ludlow)

Dan Noyes (D-Wolcott )

Kelly Pajala (I-Londonderry)

Marybeth Redmond (D- Essex)

Carl Rosenquist (R-Georgia)

Theresa Wood (D- Waterbury)

Judiciary 

Chair, Maxine Grad (D-Moretown

Vice-Chair, Tom Burditt (R-West Rutland)

Martin Lalonde (D-South Burlington )

Kevin Christie (D-Hartford )

Selina Colburn (P- Burlington)

Kenneth Goslant (R-Northfield)

Nadir Hashim (D-Dummerston)

Kim Jessup (D-Middlesex)

Will Notte (D-Rutland City)

Barbara Rachelson (D-Burlington)

Patrick Seymour (R- Sutton)

Natural Resources, Fish and Wildlife 

Chair, Amy Sheldon (D- Middlebury)

Vice-Chair, Paul Lefebvre R-Newark)

Trevor Squirrell (D-Underhill)

Chris Bates (D- Bennington)

Kari Dolan (D-Waitsfield)

Bob Forguites (D-Springfield )

Jim McCullough (D-Williston)

Leland Morgan (R-Milton)

Carol Ode (D- Burlington)

Harvey Smith (R-New Haven)

Tom Terenzini (R- Rutland Town)

Transportation 

Chair, Curt McCormack (D-Burlington)

Vice-Chair, Barbara  Murphy (I-Fairfax)

Tim Corcoran (D-Bennington)

Mollie Burke (P-Brattleboro)

Mike McCarthy (D- St. Albans City)

Pattie McCoy (R-Poultney)

Dave Potter (D-Clarendon)

Connie Quimby (R- Concord)

Brian Savage (R-Swanton)

Mary Sullivan (D-Burlington)

Becca White (D-Hartford)

Ways and Means 

Chair, Janet Ancel (D-Calais)

Vice-Chair, Bill Canfield (R-Fair Haven)

Joey Donovan (D-Burlington)

Peter Anthony (D-Barre City)

Scott Beck (R-St. Johnsbury)

Pat Brennan (R-Colchester)

Cynthia Browning  (D-Arlington)

Jim Masland (D-Thetford)

Robin Scheu (D- Middlebury)

George Till (D-Jericho)

Sam Young (D-Greensboro)

 

 

Office of Professional Regulation (OPR)

Discussion of Sunrise Assessment: Home Improvement and Construction Contractors

The Sunrise Review from the Secretary of State’s Office of Professional Regulation has been completed on the home improvement/builder industry. It recommends mandatory registration for providers of home-improvement services, which include work done in or on residential homes, and voluntary state-backed certification. The yearly fee for registration would be $100. Certification standards will have to be developed. Registration licenses are “licenses” and consequently could be publicly warned, conditioned or revoked by the Office of Professional Regulation in the event of misconduct: “Registrants are answerable to civil and criminal process, are insured, and are compliant with other state law and obligations, such as child-support, taxes, judgment orders and, where applicable, the presence of workers’ compensation insurance.”

Witnesses:

    Colin Benjamin, Director, Office of Professional Regulation, Secretary of          State's Office 

Gabe Gilman, General Counsel, Secretary of State's Office

  Christopher Curtis, Chief, Public Protection Division, Attorney General's Office

    Representative Mark Higley, House Committee on Agriculture and Forestry

  William Badger, AIA Vermont

  Sandra Vitzthum, self

  Maureen Connolly, Executive Officer, Home Builders Association of Northern Vermont

        Jim Bradley, HBRA

        Robyn Steward, Director, Building Trade Association of Vermont

        Carol Miklos, Executive Director, AIA Vermont

Maureen Connelly and Jim Bradley spoke on behalf of HBRA in support of voluntary certification and registration, but opposed the notion that a builder would be forced to register. They also offered the much needed perspective of the homebuilder who is taken advantage of by a home owner, and brought up the possibility that education, not registration, would be key to mitigating harm in this area.

Rep. Mark Higley testified in opposition of mandatory registration, calling it a “slippery slope toward full licensure”.

Some key arguments by witnesses in support of mandatory registration:

            - The report from the AGs office states that the program “received 587 consumer complaints about home-improvement services, with claimed losses exceeding $3.1 million.”

            - AIA representatives testified to the damage they have seen left by sloppy home builders. Most of the complaints they spoke of either fell well below the threshold and would be small claims, OR were of a criminal nature.

NEXT STEPS:

We are working with HBRA National to offer the educational component of certification in Vermont.

We will continue to monitor and weigh in when necessary.

The Sunrise is not slated for discussion this week.

Priorities, Analysis

Misclassification

This remains a huge issue for legislative and executive branch officials as the 2018 legislative session begins to unfold.  Ellis Mills, along with a summer working group, assisted the Vermont Department of Labor (VTDOL) and the Vermont Department of Financial Regulation (VTDFR) in drafting guidance regarding misclassification, which was finally issued late last month. The guidance extends the ruling for the Bourbeau case (which determined a single member LLC qualifies as an independent contractor for purposes of unemployment insurance) to include workers’ compensation insurance. VTDFR has issued this guidance to insurance carriers across the state.

Even though the guidance is an encouraging interim fix for our members and allies, there is still a desire among legislators and relevant state agencies (and certainly among Vermont homebuilders/remodelers) for a clear and emphatic legislative “fix” for the misclassification issue.

BILL	BILL STATUS	SPONSOR	NOTES
H.119	https://legislature.vermont.gov/bill/status/2018/H.119	Scheurmann	This bill proposes to establish a common definition of “independent contractor” for the workers’ compensation and unemployment insurance statutes. Doesn’t use the totality of the circumstance, instead it allows for any two circumstances out of the list to qualify someone as an I.C
H.223	https://legislature.vermont.gov/assets/Documents/2018/Docs/BILLS/H-0223/H-0223%20As%20Introduced.pdf	Poirier	This bill proposes to amend the definitions related to independent contractors in the workers’ compensation and unemployment insurance laws. Tracks closely with FLSA.
H.323	https://legislature.vermont.gov/bill/status/2018/H.323	Hooper	This bill proposes to amend definitions related to independent contractors in the workers’ compensation and unemployment compensation statutes.
H.574	https://legislature.vermont.gov/bill/status/2018/H.574	Poirier	This bill proposes to amend definitions related to independent contractors in the workers’ compensation and unemployment compensation statutes. Track closely with FLSA and attempts to close the person vs individual LLC loophole.
H.681	https://legislature.vermont.gov/bill/status/2018/H.681	O’Sullivan	This bill proposes to provide for notice at worksites of the requirements regarding employee classification; permit the Department of Labor to enter an employer’s premises for the purposes of investigating compliance with the workers’ compensation and unemployment compensation laws; permit the Department to obtain an injunction to enforce a stop-work order related to a violation of the workers’ compensation law; It also transfers misclassification enforcement to the Attorney General’s office.
S.73	https://legislature.vermont.gov/bill/status/2018/S.73	Sirotkin	This bill proposes to create an interagency commission to investigate, evaluate, and address the negative impacts from employee misclassification in Vermont on workers’ compensation rates, unemployment insurance contributions, and State tax revenues.
S.141	https://legislature.vermont.gov/bill/status/2018/S.141	Rodgers	This bill proposes to establish a common definition of “independent contractor” for the workers’ compensation and unemployment insurance statutes. Tracks closely with FLSA.

It’s worth highlighting a couple of the bills listed above.  H.574 is the newest iteration of a misclassification bill, introduced by Rep. Paul Poirier (I-Barre). It tracks closely with pending misclassification bills that use the FLSA standard but it also attempts to close the LLC loophole exposed by the Bourbeau Supreme Court case.

H.681 is also a bill that would provide even more potent enforcement powers to the VTDOL.  In addition, H.681 proposes to spread enforcement power to the Vermont Attorney General’s office.  The AG’s consumer protection office has increasingly focused on contractors/homebuilders in recent years and H.681 is yet another chance for them to scrutinize Vermont small businesspeople (the AG’s office was the driving force behind the Sunrise Review discussed later in this report).

In addition to misclassification, HBRANVT will be actively engaged in the following issues before the Vermont General Assembly:

Sunrise Review, Contractor Certification

Senate Committee on Government Operations reviewed a preliminary sunrise assessment for identifying the need to regulate home improvement and construction contractors. The Office of Professional Regulation (OPR) did not recommend full licensure, but does recommend the following:

1) Mandatory, minimally intrusive registration for providers of residential home-improvement services, that work above a specified monetary level, and

2) Voluntary, State-backed certification, benefitting those practitioners wishing to distinguish themselves in the marketplace, and those consumers seeking verified skills.

The recommended registration fee is $100 per year. Registration requirements would be the same requirements that all professionals must comply with (taxes, child support) but would not attach a level of qualification to perform the work.  In addition, the recommendation to include a voluntary State-backed certification that would add another level of confidence for consumers seeking information on who they hire to work on their home.

Stormwater

Last year, the bill to reduce the threshold on operational stormwater permits (H.39) made it out of the House Natural Resources Committee in time for the cross-over deadline on a 7-3-1 vote. Because it involves revenue, it was then committed to the House Ways and Means Committee. They discussed it only briefly and it squeaked by with a 6-5 vote. The decision was made not to release it to the floor with such a weak committee vote, so it's fate is now uncertain. It is not slated for discussion in the next couple of weeks, but we are monitoring it closely as water quality remains a major focus of the Vermont legislature.  

The past 3-4 years of efforts from the Vt Homebuilders has aidied in providing all Small Buisnesses in VT favorable new Guidelines regarding Workers' Comp requirments. 

You can view the Guidelines Here. 

The press release below has been released this week.

Vermont Builders Association Welcomes New State Workers’ Comp Guidelines

Burlington, Vt. –– The Home Builders & Remodelers Association of Northern Vermont (HBRANV) is celebrating new state guidelines issued to help employers understand the difference in workers’ compensation coverage requirements for employees and those for independent contractors.

The new “guidance,” as the document is called, follows a major victory for the association – and all small businesses in Vermont – embodied in a June 2017 ruling by the state Supreme Court. In that ruling, the court voted unanimously that a worker with a Limited Liability Company (LLC) could not legally be considered an individual, and therefore could not be an employee.   That decision applied to unemployment insurance for contract employees. The new guidance, which was jointly issued by the Department of Labor (DOL) and the Department of Financial Regulation (DFR), extends the court’s decision to apply to workers’ compensation for contract employees.

The DOL ensures employers have coverage for their employees and adjudicates disputes between injured workers and workers’ comp insurers. The DFR regulates workers’ comp policies and rates.

“The collaborative work of DOL and DFR, and the guidance we authored, will go a long way to providing clarity in the often-complex area of independent contractors,” said Michael Pieciak, Commissioner of DFR.

DOL Commissioner Lindsay Kurrle said the new guidance would help businesses understand a “confusing and cumbersome” law. “The department believes it is important that workers who ought to be covered are covered, without discouraging the use of true independent contractors and entrepreneurs,” she said.

Maureen Cregan Connolly, executive officer for the HBRANV, said that the Association, with the help of the Legal Action Fund of the National Association of Homebuilders, has taken the lead on the independent contractor issue. “We are proud to work to protect Vermont's small businesses, which makeup a vast majority of HBRANV membership.

The final public hearing was held on Tuesday Dec 12 th 2017 at the State House. The HBRA had Denis Bourbeau , Chair of Legislative Committee and Maggie Lenz, HBRA lobbiest from Ellis Mills attended the meeting via phone conference.

Denis spoke of the importance of clear language that will define who is a Contractor for the purpose of potential licensing or registration requirements.

Cost of no more than $100 per year to register is another vital consideration as we can not make participation in a program be cost prohibitive for a worker that wants to move up and become an independent.

The recent survey sent out to HBRA returned 75% votes in favor of Licensing or Registration and Denis clarified that the current position of the Home Builders of Vt is that the majority of Home Builders are in favor of some type of registration program.

Denis also stated to the committee that HBRA is in support of continuing education that will go along with a registration or Licensing program and HBRA will want to be a core provider of this education.

The remaining testimony from the hearing  was to have Registration as a preferred tool not Licensing.The main goal is to limit consumer fraud and improve accountability for the Home Construction and Remodling industry.

The committee will now be preparing a report to the legislature due Jan 1st. We will provide an update of the report when it is released.

The Legislature has put together a Committee to Review and recommend to the full Legislature the position that the State will take on if we should or should not have Contractor Licensing or overview in Vt. 

The first meeting of the Sunrise Review Committee, (this is the name of the Committee that is doing the review), will be at the State House on 10/24/2017. There will be several other meetings in the future that will allow the public and our HBRANV lobbyist and representatives to express their opinions on how the State should proceed.        

HBRANV will be sending out a survey to the membership to determine what position the membership of the organization wants to support. There are pros and cons to both sides of the issue. 

Pros:

·         Licensing may help the legitimate fully insured contractor to be more competitive when bidding against non-licensed and noninsured contractors.

·         Licensing will also help protect the public consumer, so they can be assured that when they hire a Licensed contractor that they are educated, experienced and fully insured. 

·        Continuing education if imposed will insure that all Licensed Contractors will have the up to date knowledge of all the new building systems and building codes as they continual change in the construction environment.

Cons:

·        State will have the ability to implement more requirements over time for all contractors that may be more than the original intent of protecting the consumer

·        State will have control of requirements to obtain a license to be able to operate as a legal Contracting Business. 

HBRANV will be representing our members position in these hearings and will be your voice to insure that Contractors rights and benefits are protected. Further updates as this review progresses will posted on this Blog. 

PLEASE post your COMMENTS on this issue below.