Lawmakers Hear Testimony on Housing, Implementation of Act 181, Childcare Licensing and FY27 Budget Items
Senate and House committees on Feb. 10 heard testimony and reviewed draft language on a range of bills and implementation items, with heavy focus on land use implementation tied to Act 181, housing measures, childcare professional licensure, and state spending proposals including FY27 budget figures and housing program funding.
Natural Resources & Energy
The panel heard multiple witnesses addressing implementation of Act 181 and related land use changes. Testimony noted Act 181 established a tiered land-use framework and relied on interim mechanisms including temporary Act 250 exemptions to avoid regulatory gaps while municipalities and regions adapt. Witnesses described the law as creating a process that shifts substantial work into implementation and rulemaking and called for technical corrections and transitional certainty as rules are rolled out.
Regional planning commission testimony said RPCs are on track to adopt regional plans by the end of the calendar year and did not request extensions to those timelines. A draft mapping referenced growth areas comprising about 2.2% of land area in one region, comparable to interim exemption area extent.
Speakers urged delaying implementation of certain rules tied to tier three jurisdiction and called for clearer public engagement, saying municipalities and property owners need more time to understand maps, regional plan designations, and how existing Act 250 permits interact with updated local regulations. Concerns were raised about enforcement of historic Act 250 permit conditions in municipalities that achieve Tier 1A status and potential conflicts with current municipal zoning.
The committee also received testimony on H.730, a bill sponsored by the Rural Caucus that would move deadlines forward, require notice to those impacted in Tier 2 and Tier 3, and provide guidance for assessors and lenders regarding tier considerations. Witnesses said the bill aims to support housing creation while acknowledging regulatory burdens for rural communities.
Economic Development, Housing & General Affairs
Witnesses discussed draft provisions affecting housing finance, taxes and municipal planning support. Testimony described a provision in a bill to extend VHFA authority to continue selling five‑year tax credits for the down payment assistance program, which had supported about 2,100 Vermont households with 5,000 or 10,000 dollar silent second mortgages and referenced $11,100,000 invested through the program and $3,000,000 repaid to VHFA under the revolving model.
Witnesses addressed loan guarantee language for an off‑site construction accelerator pilot and flagged that any loan guarantee would need to be accessed if required. The municipal planning resilience fund was discussed; a witness noted section 14 in appropriations includes $250,000 for that fund, an amount consistent with prior annual allocations.
Committee members and stakeholders debated roles among public lenders for multi‑unit housing financing and whether VHFA should remain primary for low‑ and moderate‑income projects when tax credits or bond financing are involved. Testimony also covered common interest community provisions, property disclosure, shared‑equity homeownership resale restrictions, electric vehicle charging hookups in common interest communities, and suggested aligning municipal housing targets in section one with existing state housing needs assessments.
Health & Welfare
The committee considered draft licensure and regulatory language affecting early childhood educators and other health‑related measures. Testimony described creation of a new early childhood educator chapter in Title 26, proposing a board of early childhood educators consisting of nine governor‑appointed members, with specified slots for public members, licensed early childhood educators and a family childcare provider. The board would adopt rules necessary for licensure and set education and experiential requirements.
Witnesses explained proposed prohibitions that would prevent individuals from representing themselves as early childhood educators unless licensed under the chapter or exempt, and described definitions distinguishing guidance and supervision for childcare providers. Proponents said increasing professional qualifications aligns with national standards and could allow CDD to revise licensing regulations.
On H.545, Legislative Council presented a strike‑all amendment integrating prior Office of Professional Regulation amendments. The committee also reviewed language related to access to autopsy reports, including a petition process for Superior Court review, standards for determining good cause, and provisions allowing redaction.
Health department testimony outlined temporary language to allow the commissioner to recommend immunizations not on the CDC schedule, with specified consultation requirements; that section was described as taking effect on passage and sunsetting on July 1, 2031.
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Appropriations (House)
Appropriations hearings included presentations on proposed FY27 spending and program funding. One presentation characterized a FY27 total of $82,600,000 for a program discussed on slides; testimony said that figure included existing HOP budget and was not all new money, and that the proposed FY27 amount was similar to a prior bill, H.91.
Agency witnesses discussed housing‑related appropriations. Emergency housing and Hotel/Motel program funding was described as shifting between one‑time and base appropriations, with ongoing shelter and shelter‑support spending reflected in the proposal. A witness said the agency proposed approximately a $6,000,000 increase to the Housing Opportunity Program for FY27 to maintain shelter investments coming online. For a recovery‑oriented shelter line item, testimony indicated $1,200,000 in funding with approximately three‑quarters anticipated for operations and the remainder for facility investment, and noted operational costs vary by community.
Broadband testimony referenced Act 71 and described broadband grant awards and programs. Presenters said broadband construction grants funded with federal and state ARPA capital funds total $196,000,000 and that a program called the Affordable Long Drop Program was in place to fund nonstandard or long drop installation costs so more consumers can be connected.
The Vermont Ethics Commission requested staffing and budget support tied to mandates placed on it in prior legislation. Testimony described the commission’s expanding duties, including municipal training and advisory roles following enactment of Act 171, and noted existing limited staffing.
Judiciary
The committee considered several items including a uniform disclaimers bill and other civil‑process measures. Testimony on a uniform disclaimers draft covered statutory provisions allowing disclaimers of property interests, the timing and effect of disclaimers for federal and state tax purposes, recording requirements for disclaimers of real property interests, and expanded definitions to accommodate physical limitations when signing.
Judiciary also received testimony on a bill proposing special procedural protections for volunteers, modeled in part on anti‑SLAPP mechanisms, including a limited discovery stay and a motion process intended to address litigation risk to volunteers. Witnesses discussed standards for good cause to permit limited discovery and de minimis stipend thresholds, and the bill’s supporters said gross negligence and other serious misconduct would be excluded from the protections.
A separate panel addressed liability and immunity questions tied to recommended immunizations and noted federal programs that may cover vaccine injury claims.
Agriculture
The Agriculture Committee examined a miscellaneous agriculture bill and S.10. Testimony covered proposed thresholds for farm exemptions, debate over dollar thresholds (discussed figures included $2,000 and $5,000) for activities that could affect zoning exemptions, and separate treatment of livestock. Witnesses described the agency’s role as regulator of pesticides and applicators, proposed changes to pesticide applicator exam administration and fees including an application fee of $25, renewal and continuing education requirements, and seed seller registration and fee structures including an $85 registration fee for seed sellers.
Committee discussion also addressed how towns have regulated livestock and farm activities and the agency’s capacity and jurisdiction for oversight.
Transportation
Witnesses before the Transportation Committee reviewed revenue and spending assumptions and modeling. Presentations included an assumption that needs would grow at 3.71% annually and an assumption that TEAF fund appropriations to the Agency of Transportation would grow at the same rate to match funding needs. Testimony referenced local option tax pilot fund allocations and noted existing splits and local proposals but contained no specific legislative actions in the transcript.
Conclusion
These reports cover multiple committee meetings held Feb. 10, 2026, including Natural Resources & Energy, Economic Development, Housing & General Affairs, Health & Welfare, Appropriations, Judiciary, Agriculture, and Transportation. Witnesses and committee members discussed implementation of Act 181 and related zoning and mapping issues; housing finance and tax credit authority; proposed early childhood educator licensure and childcare regulatory changes; FY27 budget figures and housing and shelter appropriations; broadband and other program spending; disclaimers and civil procedure topics in Judiciary; agricultural exemptions and pesticide regulation; and revenue and spending assumptions for transportation.
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