06/12/2008
The Vermont General Assembly adjourned the 2008 legislative session on Saturday, May 3, 2008, the second-year of the biennium marking the beginning of the 2008 campaign season.
Legislative priorities were driven by Speaker Gaye Symington and Senate President Pro Tempore Peter Shumlin -- healthcare, energy issues and workers' compensation -- while Gov. Jim Douglas provided the balance to legislative initiatives in his third term. The tug-a-war occurred with looming economic forecasts creating a restrained backdrop for all other issues.
From commencement of this session to the fall of the gavel expected revenue projections had been marked with caution. The revenue shortfalls had an impact on deliberations this session and concern for even more financial pressures for the next fiscal year. In the end the Legislature and governor agreed to total state and federal revenue spending of $4.3 billion for FY2009. An economic stimulus package -- although largely political in nature -- amounted to a sales tax holiday, assistance for road maintenance, housing, workforce development and expanded payroll tax credits for the environmental technology sector. The sales tax holiday will run July 12 and 13 for purchases less than $2,000, and from July 12-18 for Energy Star appliances.
An administrative proposal to modify the state's capital gains law was tabled this session. While NFIB/Vermont conceptually understands the desire to equalize the tax burden of working Vermonters with those who derive their income in a more passive way, NFIB/Vermont opposed this proposal. Vermont small business owners work hard each and every day to reinvest and recapitalize their businesses so that one-day the appreciation from the business will provide all or part of their retirement benefits.
Legislative leaders continue to beat the drum for the uninsured population in Vermont. Even though healthcare reform started in earnest about 18 years ago, the total number of uninsured Vermonters has negligibly changed. Nonetheless healthcare reform proposals abound again this session. With the implementation of Catamount Health Plan not even four months old, modifications to Vermont law continue. This session, the healthcare vehicle included most notably an NFIB/Vermont-opposed, 1-2 percent fee (tax) on insurance claims for the implementation of electronic claims processing in physician's offices. There were modifications to Catamount intending to make it easer for employers with less than 10 employees to offer an employer-sponsored insurance plan, but the concern here is the potential negative impact it will likely have on premiums. The legislation could have had far reaching implications for private pay insured however, but the Senate chose to listen to NFIB/Vermont and other business advocates and stripped out a number of the provisions that were detrimental.
Energy issues continued as one of the more fierce battles of the session on the heels of last session's veto of legislation that would have imposed a $25 million tax on Vermont Yankee. The session Vermont Yankee was revisited with several politically motivated proposals that again would have burdened Vermont ratepayers with higher electric costs in the future. NFIB/Vermont opposed what would have amounted to $400 million in cash of financial guarantees from Vermont Yankee. The Legislature passed the bill, but Gov. Douglas vetoed the measure. Other legislation passed will implement an "all fuels energy efficiency utility," require the monitoring of green house gas emissions from high emitting businesses, update the state energy plan to provide for installation of renewable energy systems, increase goals for passenger and freight rail, and establish a study group for developing a climate change action plan.
And then there was workers' compensation reform. NIFB/Vermont projected that if there was a chance to make some strides on the issue 2008 was the session for it to happen. With Vermont's agriculture sector fully on board, engaged and taking the lead, even the best laid plans can be pushed aside. Again political jockeying created a situation where substantive work on this issue was dismissed. According to those who analyze the impact legislative proposals will have on workers' compensation premiums, NCCI, S.345 "is not expected to materially impact overall system costs in Vermont." Translation: We remain at the mercy of fluctuating medical claims. NFIB/Vermont opposed S.345.
NFIB/Vermont supports workers' compensation reform package that is comprehensive and includes:
- Changes in benefit realignment and compensable injuries which are comparable with other states.
- Providing co-workers with legal immunity, since Vermont is one of only a few states without this protection for co-workers.
- Developing training programs on best practices to facilitate the successful return to work of employees and encourage safer workplaces.
- Evaluating the regulatory environment and propose changes for the purposes of attracting more insurance carriers to Vermont.
NFIB/Vermont opposes efforts to expand benefits to include items such as vocational rehabilitation wage supplements and employee benefits, as well as the repeal of existing legal immunities for employers.
There were a number of other issues of interest:
- Ban on Trans Fat, H.647, proposed to ban the use of artificial tans fat by food service establishments. NFIB/Vermont opposed, the bill did not pass. There is language in the health care reform bill that directs a study group to develop proposed labeling intended to inform consumers of healthy nutritional choices in food service facilities.
- Bottle Deposit Bill, H.574, would promote the com-mingling of recyclables. Signed by the governor May 08, 2008.
- Fee on Tires, H.656 would impose a 50-cent point of purchase fee on each tire to fund tire amnesty days. Did not pass.
- Do-Not-Mail-Registry, H.409, would have established a private right of action for business who do not to a do-not-mail-list established for Vermont residents by the Vermont Attorney General. NFIB/Vermont opposed this bill; it did not pass.
- Groundwater regulation, S.304, imposes new regulations relating to commercial and industrial use of groundwater. NFIB/Vermont opposed this legislation, it passed. The bill is waiting for the governor's signature.
- Riparian Buffers, H.549, would establish 15 foot buffer zones adjacent to the public waters of the state. It did not pass.
- Livable Wage, H.776, reforms the process for calculating the "state's basic needs budget;" the amount of money needed to maintain a basic standard of living. NFIB/Vermont opposed this legislation, it passed. The bill is waiting for the governor's signature.
