Vermont Government Affairs Update October 2024

The state of Vermont is a buzz of political calls, emails and events across the state as ballots will be mailed in the next week to all registered voters. In addition, many reports due to the legislature are in the process of completion or have been delivered to answer several questions related to professions including residential contracting, building code studies and education funding.

In response to a huge statewide property tax increase with an average of 14% for every homeowner there are non-governmental organizations (NGOs), chambers of commerce and even Department of Education studies trying to assess and identify reasons and solutions to huge increases. Governor Phil Scott issued a preliminary warning in several public appearances this week that already we know of a 7% increase in 2025’s statewide property taxes based on only healthcare insurance premium increases way before school budgets have even been considered. The sweeping opinion of most of the studies is the attachment of healthcare insurance to education spending has become one of the biggest drivers in increases to budgets. Additionally, para educators and additional staff needed to work with the evolving student landscape has also been an issue. The groups studying these challenges will bring in their opinions for “fixes” which will largely be contradictory as usual, and we will see those in January when the legislature returns.

The Office of Professional Regulation (OPR) has issued a “status report” on a recently created residential contractor registry requirement. The new law requires any contractor who performs $10,000 or more in any one contract with the owner of primary residential property (up to 4 units) to register with OPR while following written contract and insurance requirements. The report suggests the $10,000 threshold requirement for registration should be lower, or non-existent due to a small number of people/firms registering currently. It also, suggests that the registry is insufficient to deal with quality of work issues as the department is not qualified to do so. It also points out that the voluntary certification system created cannot manage safety or quality and refers the reader to consider sending jurisdiction of those issues to the Department of Fire and Safety (DFS). DFS has repeatedly refused to work in the single-family residential market for many reasons. It is likely a bill will be introduced to try to change all three. What this means to commercial contracting firms is that their employees who may be moonlighting on the weekends should be registered in the system to prevent their employers from vicarious liability should someone be driving a work truck or use tools provided by an employer while moonlighting.

 At the same time OPR is seeking to create a new jurisdiction under Department of Fire and Safety (DFS) another legislative working group is focused on not only the jurisdictional element but the adoptions of a statewide residential building code. Director of DFS, Michael Desrochers, is a member of the committee and has repeatedly opposed sending jurisdiction of single-family residences to his department due to staffing and funding issues. NGOs involved with the study have already produced “napkin estimate” projections for the cost of the program, licensing of contractors and inspections of buildings. The committee is operating as a rerun of a similar working group from the 2023 and it’s likely that even before the report is written that legislation is already in the works. That legislation would likely ask for all jurisdiction of single-family homes and licensing/registration of residential contractors be moved to DFS. It will then be up to the legislature and advocates on either side what, if anything, comes to pass.

If you have an interest in Vermont’s political and regulatory process, please reach out to Matt Musgrave at matt@abcnhvt.org or 802-881-9117.