Legislative Affairs
Week one of Legislative Session
January 11, 2010 weekly update for the Associated General Contractors of Vermont...
Week 1: January 11, 2010
Associated General Contractors of Vermont Testifies the Opening Week
The House Housing, General and Military Affairs Committee took testimony on H.132, Licensed Electricians for single and 2 family homes. AGC of VT testified in favor of any individual who is hired for service to be licensed electricians. The testimony presented allows for an exemption for individuals working on their own home. There was additional testimony from other groups that supported a need to have a licensed electrician for all work that was performed which required a hook up . Discussion will continue on this bill and possible legislation that would require contractors to become certified or licensed.
The House Transportation Committee also took extensive testimony on 10-0528An Act Relating to Raising Weight Limits on Interstate Highways Pursuant to Federal Legislation. AGC of VT spoke in favor of the legislation and expect this bill will move quickly. The bill increases the weight limits for interstate as a pilot project so Vermont is in line with the rest of the New England states.
Unemployment Taxes a Discussion in the House Committee on Ways and Means
The discussion on the Unemployment Insurance Taxes increasing from the summer study committee continued into the first week of the legislature. Senator Cummings, Chair of the Senate Finance Committee and the Summer Committee alerted the committee that the summer study report was not finished at this time however she did make it clear that the taxes needed to be raised; just how much and how quickly is the question. The fund is soon to be in a negative balance and will need approximately $300 million as soon as possible in order to balance the fund. The AGC of VT will continue to advocate for a balanced approach between increasing the taxable wage and reducing benefits.
Senate Transportation Updated by AOT on the Champlain Bridge
Senate Transportation Committee received testimony from Rich Tetreault , Program Development Division Director at AOT, on the progress of the Champlain Bridge. Director Tetreault informed the committee on the history of the bridge and where they are at this point. A fairy should be available for crossing by the end of this month with the RFP going out in March. AGC of VT was alerted to the fact that the Davis Bacon Rates are substantially different in NY than VT and the AOT is inclined to go with the Davis Bacon rates from NY. The rates are approximately $20 more per hour in that region for iron workers; needless to say, we need to call out the troops and make the calls necessary to Secretary Dill and Governor Douglas to encourage them to NOT cave to NY and set the rates for VT rates. With limited resources available, this will affect funding for other projects in Vermont.
$38 Million Fund by The Joint Legislative Government Accountability Committee
Governor Douglas and the House and Senate Leaders proposed a cut of $38 million in costs savings throughout state government. The report, Challenge for Change: Results for Vermonters, indentified several areas that could be cut within state government. The legislature and administration need to find approximately $150 million in FY2011 budget in order to have a balanced budget. The $38 million is a start in the right direction to attempt to attack the looming deficit facing us. The goals are as follows:
" Reducing the Agency of Human Service's budget by 5 percent in FY11 and 10 percent in FY12 " Reducing allocations designated for aging Vermonters and individuals with disabilities by 2 percent in FY11 and 5 percent in FY12 " Reducing Agency spending by 5 percent in FY11 and 7.5 percent in FY12, and " Reducing the administrative cost for education spending by 5 percent in FY11 and 15 percent in FY12. Governor Douglas Delivers His Last State of the State Address
Governor Douglas delivers his last State of the State Address on Thursday. His remarks alerted the joint assembly and guests of the need to decrease spending and increase economic development. He focused mainly on the fact that in order to increase prosperity for Vermonters, the government needed to decrease taxes, increase broadband access, have a well trained workforce, decrease expenses in our educational system, and of course highlighted the savings presented earlier in the week of $38 million.
Governor Douglas encouraged the legislators to repeal the changes in the Capital Gains Tax and Estate Tax that the legislature changed last year. He set some reachable goals for the legislature to consider this session. The link below will direct you to his entire speech. www.leg.state.vt.us
Testimony Taken on Workers Compensation Misclassification
The final report of the Workers Compensation Employee Classification, Coding, and Fraud Enforcement Task Force has completed their report of almost two years of work. The report doesnt make many recommendations however the Chair of the House Commerce Committee, Rep. Kitzmiller, and the Chair of the House Ways and Means Committee, Rep. Obuchowski are planning on presenting a bill that will encompass some of the committees recommendations and more. The bill is yet to be introduced however this is an issue AGC of VT will watch closely. The primary discussion on Thursday was enforcement and the abuse of the system by independent contractors. Rep. Kitzmiller did focus on the fact that MA has an enforcement bureau which the report contains and suggests his bill will contain as well. Another area the report focuses on is the need to have a common definition of employee and independent contractor throughout all areas of the Vermont statutes.
Date Posted: January 25, 2010
