Public Policy Coordinator Blog

Check out the blog for up-to-date information on current legislation, bills up for debate, VBSR's take on issues, policy action items, and more. 

An archive of past updates can be found here.

 

VBSR entered the 2010 legislative session with priorities related to creation of Vermont Benefit Corporations, Vermont Yankee, Health Care Reform, and Solvency of the Unemployment Insurance Trust Fund. We made significant progress on all these fronts despite the numerous economic and political challenges coming into the session.  As VBSR enters it’s 20th year, we find many of our long-standing policies resonating strongly with legislative leaders.
The 2010 legislative session will be remembered as the final session of the administration of Governor Jim Douglas after eight years in office, a year in which three Senators declared they would be running for Governor in the next election, an especially difficult economic time with a 38 million budget gap to fill, and the year of “Challenges for Change” legislation for which the jury is still out.

Some of the bills passed by the legislature influenced by VBSR advocacy include: (please see full document for more detail on these and other bills)

• S. 263- An Act Relating To The Vermont Benefit Corporations Act (passed and signed into law). This VBSR-led initiative enables the creation of a new corporate form offering entrepreneurs and investors the option to build and invest in businesses that meet higher standards of corporate purpose, accountability and transparency. This bill passed the first year it was introduced which was a significant accomplishment.
• S. 88- An Act Relating To Health Care Financing And Universal Access To Health Care In Vermont (passed and signed into law). For over sixteen years, VBSR has advocated for a health care system that provides universal access to an integrated system of care, which is decoupled from employment and publicly financed.  S.88 provides a step toward that goal by requiring the creation of three design options for a reformed health care system for Vermont. VBSR advocacy ensured one of the design options would be one that is decoupled from employment.
• S. 290- An Act Relating To Restoring Solvency To The Unemployment Trust Fund (passed and signed into law). Fund solvency was a 2010 VBSR legislative priority.  VBSR believes it was imperative to avoid burdensome debt to the federal government and the associated increased strain on our state budget.  VBSR’s advocacy on this issue helped raise its importance and passage this session.
• S. 289- An Act Relating To Approval For Continued Operation Of The Vermont Yankee Nuclear Power Station (not passed by Senate). This bill would have given legislative approval for 20 years additional operation of the Vermont Yankee Nuclear Power Station and the continued on-site storage of its spent nuclear fuel. VBSR stood in opposition to this bill letting legislators know that at this time continued operation of VY is not good for business.
• H. 589- An Act Relating To Nuclear Energy Generation And The Institution Of Trusts For Greenfield Restoration And Spent Fuel Management (passed by House). While VBSR actively supported this bill as originally introduced, we ended up preferring the bill passed in 2009 (and vetoed by the Governor) because it was broader in scope and had more aggressive time-lines.  VBSR continues to believe it is in the interest of Vermont businesses and other taxpayers to ensure that adequate funds are accessible and available when needed to ensure proper closure of the ENVY facility.  
  

Summary of 2010 VBSR Legislative Testimony
VBSR testified approximately 13 times during the 2010 session:

• House Commerce-1/8/10. Job Creation and Economic Development.
• Senate Economic Development-1/27/10. Economic Development and Benefit Corp.
• House Commerce-1/28/10. H.519- Buy Local.
• House Commerce-2/10/10. Economic Development.
• Senate Economic Development 2/16/10. Unemployment Insurance Trust Fund.
• Senate Economic Development- 2/17/10 & 3/10/10. Vermont Benefit Corporations.
• Senate Finance-3/11/10. Unemployment Insurance Trust Fund.
• Joint Health Care-3/23/10. Health Care Reform.
• House Natural Resources-4/1/10. H.589. VY Decommissioning.
• House Commerce-4/2/10. Challenges for Change.
• House Commerce-4/7/10. Vermont Benefit Corporations.
• Senate Economic Development-4/8/10. Challenges for Change.
• House Agriculture-4/21/10.  S.295- Ag. Development Director.

This testimony can be viewed on the public policy issue pages of the VBSR web site.

Other Legislative Outreach
During this session VBSR increased direct contact to legislators via mail and email including:

• Letter to Senators re: ENVY-1/22/10.
• Email alert to Legislators: Business Statement on VY-2/20/10.
• Letter to Representatives re: ENVY-2/15/10.
• End of Session Legislative Priorities-3/29/10.
• Alert to Representative re: pass S.263 Benefit Corporations-4/28/10.
• Email alert to Senators re: Pass H.88 Health Care Reform-5/10/10.

VBSR also compiled and distributed to key lawmakers a business statement supporting the on-schedule closure of Vermont Yankee that contained over 70 business petitioners.

VBSR 2010 Public Policy Press Mentions and Activity

• Feb 18 2010- Held press conference re: on-time closure of Vermont Yankee.
• Feb 18 2010- Held press conference re: on-time closure of Vermont Yankee.
• Feb 22, 2010- Free Press. Benefit Corporations.
• Feb 25, 2010- WCAX. Businesses lobby against VY.
• Feb 25, 1010- Times Argus. Nuclear workers clash with business group opposing Yankee relicensing.
• Feb 25, 2010- Free Press. Offer of cheap power won’t delay Vermont Yankee vote.
• March 15, 2010- BusinessWeek Online. What a good company looks like.
• March 15, 2010- Vermont NewsGuy blog. Corporate Values.
• April 5, 2010- VT. Digger.  VBSR and Challenges for Change.
• April 13, 2010- Burl. Free Press. Vermont among states that may allow firms to pursue social mission.
• April 15, 2010- Burl. Free Press. Vermont House panel to vote on health reform bill.
• April 16,2010- Burl. Free Press. Business Leaders seek firm answer on unemployment insurance.
• April 16, 2010- Times Argus. Sen. Illuzzi warns state much deal with crisis in unemployment trust fund.
  

Other Activity/Events
Another successful VBSR Legislative Reception was held on February 4, 2010 at Julio’s Bar and Cantina.  The event was filled to capacity with legislators and VBSR members.

I. Economic Development 2010 Legislative Summary

S.263- An Act Relating to the Vermont Benefit Corporations Act
This VBSR-led initiative enables the creation of a new corporate form offering entrepreneurs and investors the option to build and invest in businesses that meet higher standards of corporate purpose, accountability and transparency.  Fiduciary duty is redefined by requiring consideration of interests beyond shareholders, including the corporation’s employees and suppliers, the local and state economy, and the environment.   The bill passed the Senate on a voice vote and passed 2nd reading in the House 108-30. This was a great accomplishment for VBSR since the bill passed the first session it was introduced!  Benefit Corporation summary can be viewed here.

S.288- An Act Relating to the Vermont Recovery and Reinvestment Act
This legislation distributes close to $9 million in federal stimulus funds. It was passed after lengthy negotiations between the House and the Senate.  The final allocation includes:  

• $2.85 million for the Vermont Telecommunications Authority (up to 500K for upgrades to under served business districts).
• $1 million for the Vermont Jobs Fund.
• $1 million to VEDA for farm capital.  
• $100,000 for downtown and village center tax credits (in addition to other funds).
• $950,000 for the Vermont Training Program.
• $800,000 for loans to businesses affected by closure of the Lake Champlain Bridge.
• $750,000 for an entrepreneur's seed capital fund (to provide money to growing green and agriculture businesses).
• $100,000 for the Vermont Film Commission.
• $50,000 to transition the VT Seal of Quality program (taken from the initial VEDA farm capital allocation).
• $300,000 additional funds to Dept of Tourism and Marketing for media buys.
• $100,000 to Vermont Sustainable Jobs Fund for implementation of the Farm to Plate Program.
• $ 75,000 for Farm-To-School Program.
• $ 22,000 to Vermont Agricultural Fairs.
• $ 25,000 to Vermont Association of Conservation Districts.
• $100,000 for Farm-To-Institution Program.
• $100,000 for Community Capital of Vermont.
• $73,000 for Individual Development Account program run out of Dept. of Children and Families.
• $100,000 for Micro-Business Development program run out of Office of Economic Opportunity.
• $150,000 for Burlington Airport aviation technical training center.
• $100,000 for Vermont Film Commission.
• $ 70,000 for VTC paramedic training.
  

The bill also contains numerous other provisions addressing approval of international trade agreements, digital nonprofit corporations, and other. Sec. 24 includes a study and report (by January 2011) on opportunities for increased state purchase of local goods and services, and requires the Commissioner of Buildings and General services to consult with “interested parties, including Vermont business groups” (Note: the later language was a VBSR recommendation).

S.290- An Act Relating to Restoring Solvency to the Unemployment Trust Fund
VBSR went into the legislative session with solvency of the UI Trust Fund as a high priority issue. We strongly believe that the UI Trust fund needs to be put on a more sustainable financial basis in order to avoid burdensome debt to the federal government, which would cause further stress on our state budget.  For some time the only legislative action on UI was a bill passed out of Senate Economic Development, which then stalled because, legislative leadership and the Administration were not supportive of the payroll tax provision. VBSR supported that the payroll tax provision, the increased employer contributions, and accepted the benefit reductions in the Senate Economic Development Committee bill, in order to get the fund to solvency as soon as possible. VBSR supported significant increases in the employer contribution formula-more aggressive than the final bill- and opposed the Administration’s proposed cuts to the maximum weekly benefit. VBSR did seek some benefit reforms to curtail "gaming" of the system by some seasonal employees, while advocating for relief for seasonal industry employers who actively find off-season employment for their workers through shared programs with other employers (this proposal did not get included in the final legislation).  VBSR also supported some very small contributions from employees, but that did not become part of the final legislative package. In the end, the final bill was a difficult compromise that VBSR supported because it is imperative to bring the fund to solvency in a short time frame and because the bill contained systematic improvements in the financing of the system (through indexing of employer contributions) that will allow the fund to be sustainable over the longer term. The importance of fund solvency is outlined in VBSR’s 2010 UI policy position.   

Some of the changes made this year to get the fund into the black by 2015 include:

• Increasing employer contributions to the fund. Increases the Taxable Wage Base (TWB) from the current $10,000 to $13,000 in 2011 and to $16,000 in 2012. When schedule III is achieved the TWB will be decreased by $2,000. When schedule I is achieved the TWB is decreased another $2,000 than indexed After the fund balance becomes positive (projected to be 2015) the TWB will become indexed to growth in average wage.
• Creating a .5% surcharge on some negative balance employers (those who are negative for three or more consecutive years)
• Increasing penalties on employers for a variety of filing/paperwork violations.
• Implementing a 1-week waiting period before benefits will be paid starting in 2012 (and sun-setting in 2014).
• Capping maximum weekly benefits at $425 until 2011.  Then indexes benefit to percentage change in the annual average weekly wage.  When at schedule III (better times) increases the maximum weekly benefit to 57% of the state annual weekly wage. The benefit does not increase in any year that the fund is borrowing.
• In cases of misconduct it limits benefits to 23 weeks (instead of current 26 weeks).
• Variable duration- limits the maximum weekly benefit to the lesser of 26 weeks of benefits or 48% of total wages paid during the base period.
• Disqualifying people from getting UI benefits while also receiving severance pay.
• Wage disregard- 30% wage disregard that creates an incentive to seek part-time work.

Other business bills of interest:
S.138- An Act Relating to Credit Card Fees
Originally the legislation prevented credit card companies from centrally fixing fees and from implementing other practices that hurt small local businesses.  
The final bill allows merchants to set a minimum amount (no more than $10) that can be charged to a credit card, and provides other protections to merchants.

II. Budget and Taxes-2010 VBSR Legislative Summary

H.792- Challenges for Change
At the start of the legislative session, faced with a $155 million deficit to close, legislative leaders and the Administration stood together and announced that $38 million of the hole would be found through “Challenges for Change” legislation. The idea behind this initiative is to get better outcomes for less money. The thought is to get state employees and legislators to think “outside the box”.  Some feel that Challenges was a way to re-package and rush through legislative changes the Administration had unsuccessfully been pushing for years, and that the process had been rushed and did not allow for thoughtful participation.  VBSR testified in House Commerce and Senate Economic Development on some of the original Economic Development provisions.  There were numerous other provisions in the bill which will be detailed in a separate summary document.

Budget (H. 789) and Taxes (H.783)
While the session started with a $155 million budget gap, as the session progressed the gap increased to $167 million.  In addition to $38 million planned for in Challenges for Change, the final budget was balanced by unexpected federal Medicare money ($14 million), changes to the state retirement (under $2 million) and the teachers retirement systems (15 million), cuts to state employee compensation (10 million), and $40 million from the Agency of Human Services.  The other savings come from a variety of other programs including cuts in services, transfers into the general fund, less money going out of the general fund to the “rainy day fund” and increased fees for services.

At the end of the session a potential veto on the $4.7 billion budget was avoided by agreements that reduced the capital gains and estate taxes, and the pass through of the federal production tax credit. Legislative leaders agreed to reduce about $3 million in capital gains revenue by going back to the earlier rates that had been increased last year. They also restored the 40% capital gains tax exemption for sale of businesses. (There is no tax exemption for house sales or sales stocks and bonds). Estate taxes were also rolled back- the exemption was decreased from $3.5 million to $2 million last year, and will now increase to $2.75 million in starting in 2011.

III. Health Care- 2010 VBSR Legislative Summary

S.88- Health Care Reform
For over sixteen years, VBSR has advocated for a health care system that provides universal access to an integrated system of care, which is decoupled from employment and publicly financed. S.88 as passed by the legislature on the last day of the session, provides a step towards our goals, and never has the need for system reform been as urgent. Health care costs in Vermont continue to rise and by 2012 are expected to be close to $6 billion dollars- or almost $9,500 per capita. S.88 requires the creation of three design options for a reformed health care system for Vermont. One of the three options will be a single-payer, government-administered system (publicly financed and decoupled from employment), the second design would be for a Vermont “public option” plan which continues to allow for private insurance coverage, and the third will be chosen by the consultant and must meet the legislated goals. The existing Health Care Reform Commission, with an additional two members, is charged with hiring and overseeing the work of the consultant.
Other provisions in the bill, that track with VBSR’s cost containment goals, include capping of hospital annual budget increases.  The final bill also included some additions put in by the House to expand the Blueprint for health, tracking of free drug samples given to doctors by pharmaceutical companies, and a menu-labeling provision similar to a provision in the federal Health Care Reform Act.
The drug sample piece had a good deal of opposition and there was some talk the Governor would veto the bill because of that measure (and because of the $300,000 budgeted for the study), but the Governor ultimately let the bill become law without his signature.  VBSR, and some of our business members, testified at a business public hearing about how our current health care system is unsustainable (and often nonsensical). Looking ahead we expect continued debate about how to finance health care and about the role of government in the health care system. Please see VBSR Policy pages for Health Care Policy and Testimony:

IV. ENERGY AND ENVIRONMENT- 2010 VBSR Legislative Summary

Prior to the start of the 2009 legislative session, VBSR adopted an updated energy supply policy that addressed energy efficiency, renewable energy, and the re-licensure of Vermont Yankee. We monitored, testified, and advocated on all of these issues.  
 
S. 289 – An Act Relating to Approval For Continued Operation of the Vermont Yankee Nuclear Power Station
VBSR’s policy position regarding ENVY is that the Legislature should not be in a rush to re-license the facility until “all the necessary facts are known and the full costs and risks of continued operation are considered: electric rates, customer bills, safety, decommissioning, and waste management.”   In our member surveys, the results continue to be that two-thirds of the respondents do not want to see VY’s operating license extended past 2012.  
The Senate took up S. 289, a bill that would give legislative approval for 20 years of additional operation at the facility and the continued on-site storage of its spent nuclear fuel. VBSR’s position was that the relicensing of ENVY was not a safe or cost-effective solution to our long-term energy needs due to the continued radioactive waste storage near the banks of the Connecticut River, continued safety and deferred maintenance issues, no demonstration of adequate financial capability and responsibility, and overall fiscal prudency.  VBSR advocated for a “no” vote on this bill and the bill failed in the Senate by a vote of 4-26.

H. 589- An Act Relating To Nuclear Energy Generation And The Institution Of Trusts For Greenfield Restoration And Spent Fuel Management
VBSR entered the 2010 legislative session with continued concerns about the financial capability of ENVY to ensure proper and timely closure of the facility—whenever that time may be.  Whether from a planned or unplanned closure, VBSR is working to ensure that adequate financial responsibility is in place to ensure funds are available when needed.
H.589, which passed the House unanimously, differs from the bills passed the last 2 years and that were vetoed by the Governor. This bill did not directly address radiological decommissioning (that is under NRC purview) but instead addresses the management of the spent fuel and the restoration of the site to “Greenfield” status, through the creation of two separate trust funds. VBSR testified in support of the original bill but did not believe the bill passed by the House was broad enough in scope or aggressive enough in its timelines.
VBSR will continue to work to ensure adequate financial responsibility is in place to make sure adequate funds are available to ensure necessary decommissioning and that Vermont businesses and taxpayers are not left “holding the bag”.

H.781- An Act Relating to Renewable Energy
The 2010 renewable energy bill includes a variety of actions to facilitate the development and use of renewable energy in Vermont.  VBSR did not take an active role or position on some of the major components of the bill due to lack of member consensus regarding.  Some of the main components included:
consolidated appeals (to the Public Service Board) of renewable energy projects,
price stability to farmers implementing “Cow Power”
corrections to the solar tax credit incentives
corrections to the ”standard offer” provisions so that if at least 25% SPEED resources will automatically qualify.  
allowing large scale Hydro Quebec power to be considered “renewable”.  
After the bill was passed by House Natural Resources, House Judiciary amended it so that municipal permit appeals remained in Superior Court and hydro projects that require FERC permits will remain in environmental court.  The most controversial aspect of the final bill was the Hydro Quebec piece with some environmental groups and lawmakers in opposition. Concerns include environmental impact of hydro dams and protections for smaller scale community renewable projects.

VBSR Energy Policy and Testimony

Environmental Bills of Interest:
S. 247 – An Act Relating to Bisphenol A (BPA)
The legislation bans the manufacture and sale and infant formula or baby food stored in containers that contain bisphenol A).

S. 77 - E-waste- An Act Relating to Recycling and Disposal of Electronic Waste
This new program will place a surcharge on manufacturers to help fund collection and proper disposal.

For more information regarding VBSR Public Policy please visit the VBSR Public Policy Webpage and contact VBSR Public Policy Manager- Andrea Cohen,

Also:
Please also let us know if you are interested in getting active one on of our policy groups !
Follow up on Twitter at VBSRPolicy

 

2010 Legislative Session- Summary of key bills influenced by VBSR advocacy

Vermont Benefit Corporations Legislation (S.263)
VBSR led initiative that legally recognizes the business model envisioned in our mission statement.

Health Care Financing and Universal Access (S.88)
Health care reform is an economic development issue. VBSR supported S. 88 as a step towards universal access, based on ability to pay, that is decoupled from employment.

Vermont Yankee Continued Operation (S. 289)
VBSR supported on-schedule closure of Vermont Yankee due to de-commissioning, waste management, safety, and fiscal management issues not being adequately addressed (supported a “no” vote).
(Bill voted down in Senate, was not taken up in House).

Trusts for Greenfield Restoration and Spent Fuel Management at VY (H.589)
VBSR was the only businesses association supporting aggressive measures to ensure adequate funds will be available when needed.
(VBSR supported even stronger measures than the House passed bill. The bill was not taken up by the Senate).     

Restoring Solvency to the Unemployment Trust Fund (S. 290)
VBSR urged policy makers to react swiftly and decisively to ensure that the goals and viability of the UI program would be preserved.

Buy Local Provisions (S.288)
VBSR supported state procurement policy that favors local and socially responsible businesses.

Also:

• VBSR testified approximately 13 times during the 2009 session and increased direct contact to legislators via mail and email.
• VBSR compiled a business petition re: closure of VY that contained approximately 70 business petitioners.
• Another successful VBSR Legislative Reception was held on February 4, 2010 at Julio’s Cantina.
• Please review the VBSR Public Policy Website for more related information and links http://vbsr.org/index.php/pages/public_policy/

Dear Sen. Miller,
Thank you so much for the opportunity to meet this morning in the Speaker's office.  I thought the discussion was valuable albeit short and introductory.  I want to echo the Speaker's opening comments - only in Vermont could such a meeting happen and I am very appreciative of the opportunity.

I did want to react to one of the statements made by one of the participants.   I do not think the commenter speaks for the business community when he stated that boards of directors are questioning investment in Vermont.   I was chatting with Jan Blittersdorf after the meeting and we both had the same reaction, that our companies are deeply committed to Vermont, have no intention of ever leaving the state and contrary to  comments, have boards that fully support our continued investment in Vermont.   We seek to expand our commitment to the state, not reduce it. The reason for this is that we find Vermont to be an extraordinary place to do business, that Vermonters are the most loyal and productive workers and that our government is so accessible.

Where else can I drive up to the State House, park right in front of the capitol and walk into a meeting with colleagues, legislators and friends (some fit all of those categories)  and discuss the state of the economy.   Vermont is good for business and that should be our message, not the gloom and doom that I was hearing. Creating jobs will strengthen our economy and as I mentioned, I believe we need to devote more resources and attention to small businesses that grow into medium business and some that grow into large businesses.  Our entrepreneurial Vermonters have created world-class businesses and we should create a climate that allows this job creation strategy to flourish.

Once again, thank you so much for the opportunity to meet this morning.  Please let me know if there is anything at all that I can do to help move this agenda for Vermont forward.
Best regards,
Don Mayer