Lawmakers consider tobacco licensing changes, housing spending shifts, data center rules and opioid fund differences across committees
Lawmaking sessions across multiple committees on May 20 produced detailed discussion of proposed regulatory changes and spending adjustments. Committees considered amendments affecting tobacco licensing and enforcement, housing finance and appropriations language, data center siting and energy requirements, and differences between House and Senate opioid-abatement appropriations.
Economic Development, Housing & General Affairs — tobacco regulation, licensing and penalties
Members reviewed a consolidated bill on regulation of tobacco products and tobacco substitutes that includes numerous licensing, enforcement and tax-related provisions. The committee discussed separating tobacco licensing from liquor licensing, clarifying definitions for wholesale dealer and wholesale outlet, and aligning retail licensure practice with Department of Liquor and Lottery procedures so licenses run for a year from issue rather than expiring April 30.
Committee discussion addressed license application, municipal legislative-body processing using a board-provided application form, and fee changes. The transcript notes an original license or renewal fee change from $110 to $150 was adopted in prior action and is reflected in the current proposal.
The panel also reviewed changes to online sales prohibitions. The language discussed would bar internet orders from being shipped to anyone other than a Vermont-licensed wholesale dealer, with a subdivision clarifying that Vermont licensed wholesalers may ship directly to Vermont licensed retail dealers.
Penalties and enforcement were a central focus. The bill distinguishes individual and licensee liability for sales to minors, retains or restores a civil penalty increase related to first offenses, and authorizes administrative penalties and license suspension or revocation for licensees under specified subdivisions. For minors presenting false identification, the proposal preserves nonfinancial options such as up to ten hours of community service or participation in a youth tobacco cessation program administered by the Department of Health; the House version removed certain financial penalties that had appeared in earlier drafts. Committee discussion also covered civil penalty amounts across other penalty provisions and procedures for inspection and online enforcement.
A new report requirement is included in the draft under review.
General & Housing — S.3, appropriations housekeeping and housing provisions
The House General & Housing Committee reviewed S.3, described as an omnibus housing bill that combines housing provisions sent between chambers. Appropriations Committee amendments were noted to strike language that duplicates items already placed in the conference budget and to add per diem authority for a Disabilities Council member. Members reported Appropriations had voted 11–0 on its amendment and on the bill as amended.
Committee discussion detailed several Ways and Means and Appropriations changes retained in the bill. One provision would remove a statutory floor for a program that had targeted individuals at 65–150% of area median income, effectively allowing the program to serve lower-income households as well. The committee also addressed a $10 million appropriation originally designated to support emergency shelter and permanent homes, with testimony indicating approximately $2 million remained available from that bucket.
The committee discussed creation of a Service Supported Housing Advisory Council under the Department of Disabilities, Aging, and Independent Living (DAIL) to advise VHCB on expenditures for housing for individuals with developmental disabilities. Appropriations language would make the advisory council permanent, require monthly meetings and an annual report including a housing needs assessment and funding-source recommendations. Appropriations also proposed adding per diem compensation for nonstate members not otherwise compensated, to be funded from DAIL base appropriations. Appropriations recommended striking a FY24 appropriation amendment for VHCB because the budget compromise already includes that language.
Ways and Means amendments were described that shift an off-site construction accelerator pilot program from DHCD to the state treasurer’s credit facility, allowing the treasurer flexibility to contract and use a portion of the credit facility for bulk off-site construction purchases.
Energy & Digital Infrastructure — S.40, S.527, S.300 and data center provisions
The Energy & Digital Infrastructure Committee reviewed multiple bills addressing data centers, energy and siting. Discussion focused on project design and site-suitability assessments for data centers, including whether to require consultation with Efficiency Vermont and whether design and construction must ensure compliance with state energy efficiency requirements and best practices. One change under consideration would remove specific references to greenhouse gas emissions from the energy transformation payment language.
Committee members discussed the relationship between Public Utility Commission (PUC) review and Act 250 (land use) review, noting concerns about overlapping jurisdiction and the need to clarify parallel processes. Proposed language would require pre-application public meetings and attendance by the Department of Public Service in certain cases. The draft also contains demand-side management and virtual power plant provisions and authorizes energy transformation payments and community funds intended to address local impacts; committee members debated whether ratepayer- or state-funded incentives could be accessed by data centers.
Provisions discussed would require preliminary assessments addressing commercial building energy standards, deployment of on-site renewables, waste heat recovery capable of providing thermal energy to municipalities or residents, groundwater and surface water withdrawal impacts, and review timing related to permitting availability.
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The committee also reviewed greenhouse-gas legislation (referred to as the greenhouse gas bill) that has been amended in the Senate and may affect timing and scope of related energy measures.
Health & Welfare — H.660 and Opioid Abatement Special Fund appropriations
The Senate Health & Welfare Committee met as a conference panel on H.660, the bill relating to Opioid Abatement Special Fund appropriations. Counsel presented a side-by-side of House and Senate versions. Committee discussion highlighted differences in appropriation amounts and line items between the two versions.
Key differences identified include a House provision of $900,000 to the Department of Health for creation of recovery residence beds at NARA certification level three or above versus $600,000 in the Senate version. Similarly, the House contained a $300,000 line for new NAR-certified recovery beds while the Senate provides $600,000 for opioid use disorder treatment beds at ASAM level 3.1. The Senate version also includes $800,000 for recovery centers and $287,000 to the Department of Public Safety for harm-reduction programming, items not present in the House version.
The Senate version rewrote the advisory committee’s appropriation review process to limit new funding recommendations for fiscal year 2028 and to require review of outcomes of previously funded programs to inform fiscal year 2029 recommendations and thereafter. Committee members discussed the Overdose Prevention Center funding and whether additional FY27 funds were appropriate given existing grants through FY27 and the lack of identified locations.
Appropriations — H.775, housing finance and Act 69 follow-up
The House Appropriations Committee continued review of housing legislation tied to H.775 and S.3/ S.328, including language affecting Vermont Economic Development Authority (VEDA) financing, the Vermont Housing and Conservation Board (VHCB), and the state treasurer’s credit facility.
Appropriations described amendments to allow VEDA, after consultation with Vermont Housing Finance Agency (VHFA), to finance multiunit housing developments of five or more units only when acting jointly with a financing lender, and to prohibit VEDA from financing portions or phases that BHFA determines are primarily for low- or moderate-income occupancy.
The committee discussed changes to the rental revolving loan fund, authorization for DHIP to advance funding for VHIP developments rather than reimburse, and reporting requirements, including a VHCB update on farmworker housing and a municipal housing analysis and report series. Appropriations reviewed fiscal impacts of increasing the treasurer’s credit facility from 10% to 12.5% of the state average cash balance, noting estimates of foregone interest income as a potential maximum cost.
Appropriations also reviewed a Service Supported Housing Advisory Council created under Act 69 continuation language and the fiscal impact of adding a per diem for nonstate council members, estimated as a de minimis amount relative to agency budgets.
Judiciary and other committees — forensic facility, animal welfare and landlord-tenant measures
Judiciary committees discussed multiple complex bills. House and Senate Judiciary panels reviewed amendments to S.193 concerning a proposed forensic facility, highlighting a requirement for a feasibility plan, limits on initiating contracts before the feasibility plan is completed, competency findings, and forensic risk-assessment procedures tied to commitment and release determinations.
A House Judiciary session reviewed extensive amendments to animal welfare statutes covering seizure, forfeiture proceedings, custodial caretaker payments, notice requirements following seizure, veterinary involvement in seizures and examinations, and fund limitations on payments to caretakers. The panel noted that director authority to pay custodial caretakers is to be constrained by the amount of security posted, and clarified terminology such as replacing “legal interest” with “ownership interest” and using “caretaker” consistently.
Senate and House Economic Development and General & Housing panels continued to address landlord-tenant proposals. The Senate Economic Development Committee reported a slimmed-down landlord-tenant bill would retain trespass provisions and a court-administrator report on a dedicated residential rental docket, while other sections were removed and the matter was expected to proceed to conference.
Conclusion
This article covers May 20 committee sessions of the Senate and House panels including Economic Development, Housing & General Affairs; General & Housing; Energy & Digital Infrastructure; Health & Welfare; Appropriations; and Judiciary. Committees reviewed proposed changes to tobacco licensing and enforcement, housing finance and appropriations language, data center siting and energy requirements, opioid-abatement appropriations differences, and procedural and funding provisions in forensic facility and animal welfare legislation.
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