Lawmakers debated tax changes, Medicaid coverage for optometry services, forest roadmap funding and data privacy enforcement in multiple committee sessions May 22
Ways & Means (House) — 14:40; S.23, manufactured homes, optometry, Medicaid
The House Ways & Means Committee considered provisions affecting manufactured-home communities, tax treatment and optometry scope during its 14:40 meeting on May 22. Members reviewed language that would treat a manufactured home community organized as a limited equity cooperative “as if it were incorporated as a state nonprofit with a public purpose and public benefit” for the purposes of accessing state funding and grants, while a separate provision was added to state that the change “doesn’t affect the tax treatment of those entities.”
Committee discussion also addressed an amendment to the bill that would alter the sales tax exemption for manufactured homes. The fiscal office said raising the exemption from 40% of the transaction to 90% would have a fiscal impact of $200,000 in fiscal year 2027 and $500,000 in fiscal year 2028; delaying the effective date by a year would move those impacts out of the immediate budget period.
The committee debated a provision expanding the definition and practice scope of optometry to authorize an “advanced therapeutic procedures specialty,” including certain surgical, laser and injection procedures, and related specialty licensing. Fiscal staff described a one‑time specialty designation fee of $100 that could apply to roughly 50 professionals, producing about $5,000 in revenue when effective July 1, 2028.
Members also discussed Medicaid coverage for services provided by optometrists under the bill. Witnesses and counsel told the committee that the services are currently covered when provided by ophthalmologists but would not be covered when provided by optometrists unless Vermont amends its Medicaid state plan. Legislative counsel and administration testimony indicated that amending the Medicaid state plan would require legislation directing the administration to seek a state plan amendment and would prompt a fiscal analysis and a budget request.
The Ways & Means committee voted to move the bill to Appropriations; committee members noted that appropriations would be the appropriate committee to address Medicaid payment or coverage amendments.
Ways & Means (House) — 14:10; S.1, local option tax charter change for Stowe
In an earlier Ways & Means session, counsel described a charter change proposal for the town of Stowe that would authorize the town’s selectboard to impose a 2% local option tax on sales, rooms, meals and beverage sales. The presentation cited existing statute that allows a base 1% local option tax and explained that because the 2% would be an additional authority above the base 1%, it must be adopted by charter change.
Fiscal estimates presented for an additional 1% in Stowe projected that a full year would raise $4.8 million; because the measure would not go live until October 1, the first-year revenue was estimated at 75% of the full year, about $3.6 million. The estimate indicated roughly half of that amount would be allocated to a local option municipal transportation special fund under the amendment’s revenue split language.
Committee members discussed the mechanics of the local option tax revenue split. The amendment presented to the committee would treat the first 1% under existing local option rules (with 25% to the state, 75% to the municipality). Revenue from the proposed second 1% would be split 50/50, with half deposited to a local option municipal transportation special fund and half returned to the town, subject to a special‑fund structure described as not yet established.
Appropriations (Senate) — 14:00 and 14:30; removals and revisions to appropriations language
Senate Appropriations met in multiple sessions addressing budget language and appropriations amendments tied to several bills. Members discussed removing certain appropriations and adjusting language that would reserve or hold funding.
At the 14:30 Appropriations meeting, committee discussion and an amendment focused on removing a $500,000 one‑time appropriation and on taking out language that would have held about $2.5 million for up to three years for public safety communications projects. Committee members referenced a larger appropriation item noted in a bill summary: removing subsection language that would have authorized use of remaining monies in an appropriated account after a three‑year period. Another Appropriations presentation referenced striking an appropriation provision that would have directed $405,100,000 to a response grant fund, indicating the amendment’s effect is to remove those appropriations from the bill text.
Other Appropriations testimony summarized capital and programmatic funding lines across departments, including adjustments in cash and bond allocations for a range of projects.
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Natural Resources & Energy (Senate) — 13:00; H.740 funding and repeal language
The Senate Natural Resources & Energy conference committee met on H.740 and reviewed amendments, funding levels and repeal language related to the bill. Committee members thanked sponsors for language clarifying address‑level data handling and discussed the repeal of the clean heat standard and related timeline language. The committee reviewed one‑time funding language: the Senate had proposed contingent funding of $500,000, while the House had appropriated $300,000 in one‑time funds; senators said they had sought additional funds but were told by House appropriations colleagues that expanding the appropriation was unlikely.
Commerce & Economic Development (House) — 14:45; Vermont Data Privacy and Online Surveillance Act enforcement and cure period
House Commerce & Economic Development considered a draft of data privacy legislation that would set detailed controller obligations, privacy‑notice requirements and limits on collection and processing. The draft added a provision specifying the general assembly’s intent not to provide consumers a private right of action for violations of the act; instead it stated that enforcement would be assigned to the office of the attorney general, and that the legislature intends to provide additional appropriations and resources to support the AG’s enforcement work in subsequent years.
Committee members also discussed a cure‑period enforcement mechanism included in the draft. The provision, taken from the Senate, would require the attorney general, before initiating enforcement action, to issue a notice of violation and allow an alleged violator 60 days to cure if the AG determines cure is possible. The draft sets an effective window for the cure‑period approach starting January 1, 2028 and ending June 30, 2029. Committee discussion reflected divergent views about whether a cure period would allow corrective action without litigation or could enable continued harmful data transfers during the period.
Other sections discussed in Commerce included limitations on collection and processing, privacy‑notice content requirements and exemptions for certain categories of publicly available information and financial privacy frameworks.
Agriculture, Food Resiliency & Forestry (House) — 11:00; Vermont Forest Futures Strategic Roadmap and Acts
The Agriculture, Food Resiliency & Forestry Committee received an update on the Vermont Forest Futures Strategic Roadmap and its first year of implementation. Department of Forests, Parks and Recreation staff described pillar objectives addressing forest management, land use, incentives for resilient practices, and stewardship of private forest land, referencing existing programs such as the use value appraisal (current use) program and citing that about 80% of Vermont’s forest is on private land. The committee’s materials and testimony referenced Acts 181 and 59 and implementation considerations for Act 183. Witnesses discussed funding constraints and a focus on pursuing federal, private and foundation funding opportunities to support roadmap activities given limited state resources.
Government Operations (Senate) — 13:00; EMS system funding, provider tax and S.18
The Senate Government Operations Committee reviewed an assessment of emergency medical services funding and structure, stating that Vermont spends about $98 million a year to provide EMS services, with roughly half coming from direct insurance reimbursement and the remainder from local property tax appropriations and other sources. Testimony included breakdowns of call volumes, transport types and per‑call or per‑capita cost figures for different classes of EMS providers. The committee also discussed the provider tax mechanism that helped increase Medicaid rates in the state and how Medicaid rate growth interacts with provider tax revenues. Committee materials referenced bill S.18 in the context of the EMS review.
Government Operations & Military Affairs (House) — 11:00 and 15:05; cannabis event permits and S.10,S.25,S.138
House Government Operations & Military Affairs examined cannabis event permitting, public‑safety considerations and proposed rulemaking authority. Committee discussion described event permit eligibility, required security and product‑sale plans, and municipal approvals. At the 15:05 session, the committee considered a House Ways & Means amendment to a charter change for Stowe similar to the Senate/House discussion of local option taxes and a revenue split that would send 50% of the second 1% to a municipal transportation special fund, with half of that returned to the town.
Institutions (Senate) — 12:30; telehealth and related costs, S.5
The Senate Institutions Committee met on H.294 and related telehealth services and cost structures, discussing how states and corrections systems fund telehealth services. Witnesses noted major cost drivers such as long‑term storage of recorded calls and staff training, and described funding approaches that combine state budget allocations and other sources. The committee’s agenda listed S.5 among the items under consideration.
Conclusion
This report covers committee meetings held May 22 and summarized material developments reported to or considered by the House Ways & Means Committee (sessions at 14:40 and 14:10 and a later 16:45 session), the Senate Natural Resources & Energy Committee, multiple Senate and House Appropriations sessions, the Senate Finance committee, the House Commerce & Economic Development committee, the House Agriculture, Food Resiliency & Forestry committee, the Senate Government Operations committee, the House Government Operations & Military Affairs committee, and the Senate Institutions committee. The subjects discussed included proposed tax and local option tax changes, funding and appropriations language, mandates and licensing for optometry practice and Medicaid coverage implications, forest‑management roadmap implementation and funding, and enforcement and procedural provisions in proposed data privacy legislation.
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