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Week 10: The Jobsite at the Statehouse
A Contractor's Eye View of the Legislature in Action
Friday, March 13, 2026
by: Richard Wobby, EVP AGC/VT

Section: 2026 Legislative Updates




“If you’ve ever tried pouring concrete in February, you already know what the Legislature is doing right now: working really hard while absolutely nothing cures the way it’s supposed to.”

Under the Golden Dome, lawmakers are mixing policy, water, gravel, and “technical corrections” into one big legislative slurry, hoping it sets before crossover. Contractors statewide are watching closely, coffee in hand, wondering which bills will firm up and which are going to crack like a bad slab.

Contractor‑Focused Summary of the Week Under the Golden Dome

 
 1. Permitting & Act 250: Confusion Continues, Corrections Coming
Committees continued sorting out Act 181 implementation after mounting frustration from municipalities, planners, and developers. Technical fixes are being drafted to prevent accidental slowdowns in housing.
Impact:
Uncertainty remains the biggest barrier to project planning. Fixes should move before crossover.
 
 2. H.805 – Wetland/Stormwater Streamlining (Contractor “Win of the Week”)
Allows ANR‑certified engineers to approve minor wetland and stormwater permits.
Impact:
  • Faster permitting
  • Lower soft costs
  • More predictable project starts
  • Strong momentum heading toward crossover. 

3. H.775 – Housing Production Bill (Headed to Crossover)
A sweeping package to boost housing construction, including:
  • New financing tools
  • Expanded VHIP rehab funding
  • Modular/off‑site construction pilot
  • Municipal planning requirements
  • Off‑site building code development
Impact:
Expect more housing pipeline opportunities, especially modular/off‑site.
 
4. S.328 – Union Labor Density Bonus (Red Flag for Merit Shop Contractors)
Allows municipalities to offer a 20% density bonus for projects using union labor.
AGC/VT testified that:
  • It distorts bidding
  • Workforce capacity is not there
  • May attract out‑of‑state labor
Impact:
Major equity concern; still likely to survive crossover in some form.

5. Workforce & Employer Costs
Testimony continued on workforce shortages, healthcare premiums, and housing scarcity all contributing to rising employer pressures.

Three employment‑related bills remain live:
  • H.205 (Noncompetes) heading to crossover
  • H.459 (Leave changes)
  • H.570 (Overtime)
Impact:
Noncompete restrictions could reshape retention strategies for PMs, estimators, and technical staff.

6. CTE System Overhaul (Long‑Term Workforce Reform)
Committees continued refining the statewide CTE ESA model.
Impact:
Potential for better trade‑training pipeline, but risk of local partnership disruption.

7. VEGI Program (Commercial Development Boost)
S.225/S.327 expected to move. Removing VEGI’s sunset could help expansions, industrial projects, and commercial builds.

8. Transportation Funding Lagging
Transportation investments remain below 2013 real‑dollar levels; costs keep rising.
Impact:
Stalled infrastructure pipeline unless new revenue emerges.

Bills Most Likely to Cross Over (Contractor‑Relevant)
High Probability
  • H.805 – Wetland/Stormwater Streamlining
  • H.775 – Housing Production Tools
  • H.205 – Noncompete/Stay‑or‑Pay Restrictions
  • Act 250 “Technical Corrections” Package
  • S.328 – Union Labor Density Bonus (modified)
  • VEGI Extension – S.225 / S.327
Medium Probability
  • CTE ESA governance bills
  • Transportation Program bill
Low Probability / Not Moving
  • Paraquat ban
  • Act 250 major overhauls
  • Workers’ comp expansion (S.125)
Contractor’s Week 10 Wrap‑Up
At the end of the day, here’s the big picture:
Contractors are trying to build Vermont, and the Legislature is trying to decide how much red tape to wrap around the toolbox. We’ve got one bright spot in faster wetland and stormwater permitting, a promising housing bill, and some dangerous ideas floating around about picking winners and losers in the labor market.

As always, our job is to keep the pressure on, keep the facts straight, and keep reminding Montpelier that nothing gets built without the people in hard hats who actually pour the footings.

That’s the week and we’ll stay on it so you can stay on the job.

Favorite shovel got runover, Need a new handle...
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