Leonine: Legislature started with a bang ... just 10 months ago

This will be the final newsletter of the 2020 legislative session. We would like to thank our readers and we look forward to reconnecting in 2021. Stay safe.

THE LONGEST SESSION

"The 2020 legislative session started with a bang. The second year of the biennium usually ramps up faster than the first year - committees are already appointed and many bills are already introduced and on the schedule for consideration - but week one of 2020 was all about the November election.

Leonine Public Affairs The above paragraph is the opening line from our first newsletter of 2020. As we write our 2020 legislative wrap up in the middle of October it is hard to imagine that when the session began, it felt like it was going to be a quick one. Just a day or two into the session, reports were flying around the statehouse that Lieutenant Governor David Zuckerman was about to announce he would be challenging Governor Phil Scott for the state’s top office. Before Zuckerman even announced, Senate President Pro Tem Tim Ashe declared he would be running for Lieutenant Governor, which in turn led to announcements and wild speculation about who else might run for the number two spot, and who would be running for the soon to be vacated Chittenden Senate seat.

By the end of the first week everyone who frequents the statehouse seemed to be focused on the election, which of course also has huge ramifications well beyond Vermont. That first week it really did feel like lawmakers would get in, pass their priorities, pass a budget and get out.

This of course is not the way things played out.

In our legislative wrap-up we usually do a quick recap of the highlights of the session, how the end of year political jockeying played out, and highlights from the budget. As with everything else in 2020, it will be different this year.

This is because the 2020 legislative session was not a single session, it doesn’t even feel like it was a single reality. Virtually everything that happened after March 13 was unprecedented on every level - priorities, process, politics, timeline and indeed the election. It is therefore difficult to summarize the 2020 legislative session, at least without taking months to write a history book about it.

From our perspective the session was really four different sessions - pre-pandemic, the beginning of the crisis, the beginning of the recovery and the final budget. Interestingly, different variations of a budget were passed in all four of these mini-sessions. As those who follow state government know there are normally two budget bills within a session - a budget adjustment early on and a final budget in May or June.

Once COVID-19 hit the legislative process became both historic and unprecedented in the way the House and Senate conducted their business. After taking time in March and April to adjust both the rules and technology to allow for remote hearings and voting, the legislature became a remote entity, with lawmakers, staff, the media and lobbyists conducting their work via Zoom and YouTube.

The political dynamics shifted completely as well once the pandemic reached Vermont. For the first few months no votes were taken and no policies were considered that were not supported by all political parties. It was late May before the legislature began to work on non-COVID-19 legislation. Even while considering other legislation that had been on the docket before March, every decision and consideration was made through the lens of COVID-19. Committees had to seek approval from the rules committee in each body before advancing a bill to the floor.

A session-defining theme was the debate about how the legislature should allocate Coronavirus Relief Fund (CRF) monies. Congress passed the CARES Act in March which allocated $1.25 billion in relief funds to the State of Vermont. This was an unprecedented infusion of money at a time when it was greatly needed. However, there were and indeed continue to be challenges with CRF. There are restrictions on how CRF money can be used - restrictions that changed over the course of the summer - and funds need to be appropriated and spent by the end of the year. Much of the legislative focus in May, June and again in September was on how to effectively and legally distribute CRF to support the economy, the health care and education systems and Vermonters who have been trying to get by during the most challenging time in decades.

The political, racial and social justice dynamics that have rocked the nation also impacted the legislative session. Bills relating to racial justice and curbing police brutality were passed by the legislature and enacted into law. After the better part of a decade of incremental steps, both bodies of the legislature finally agreed on a bill that establishes a regulated market for cannabis in Vermont, and Governor Phil Scott allowed the bill to become law without his signature.

The Democratically controlled General Assembly successfully overrode two vetoes by Governor Scott, first on a minimum wage bill and more recently on the Global Warming Solutions Act. An override of a veto of a paid family leave bill failed by one vote in the House early in the legislative session. The governor also vetoed an Act 250 bill in early October but lawmakers adjourned without setting a veto session and had no interest in coming back to try to override the veto.

To sum it up, a legislative session that at the outset seemed primed to be a quick, orderly endeavour became a historic session that was at times both fascinating and tragic. While the legislature has adjourned sine die four months later than usual, the work will continue, as will the pandemic. The condensed election season will be a whirlwind and as soon as election day has come and gone the new legislature will have to pick up where the old one left off - doing its best to support Vermonters while navigating a global crisis.


2020 SESSION TIMELINE

For an in-depth rundown of the distinct mini-sessions that defined the 2020 legislative session see below or click here.

2020 Vermont Legislative Session Timeline

Part 1 – Pre-COVID 19 – January and February 2020

  • The Vermont Legislature convenes in early January.
  • Lieutenant Governor David Zuckerman announces he will challenge Governor Phil Scott for the state’s highest office.
  • This announcement puts the focus on the election as Senate President Pro Tem Tim Ashe and Senator Debbie Ingram announce they will run for Lieutenant Governor. This sets up what will be a 13-way Democratic primary for the Chittenden County Senate.
  • Democratic leaders resumed work on two of their top priorities from 2019, paid family leave (H.107) and minimum wage (S.23).
  • A budget crisis at the Brattleboro Retreat and reports of abuse and mistreatment of inmates at the women’s prison in South Burlington rock the Agency of Human Services and prompt legislative hearings.
  • Legislative leaders set policy priorities to aggressively address climate change.
  • Governor Scott delivers a budget proposal that shies away from big ticket spending or tax proposals, further fueling the perception the session could be quick and relatively noncontroversial.
  • The House and Senate reach agreement on H.107 and S.23. Governor Scott vetoes both bills. The House fails to override H.107, the paid family leave bill, but successfully overrides S.23, the minimum wage bill. This is the first successful override of a Phil Scott veto.
  • The legislature passes an FY2020 budget adjustment.
  • The House passes S.54, the bill establishing a tax-and-regulate system for cannabis. It’s the first time such a bill has passed the House. S.54 goes to a conference committee.
  • The House passes H.926, a bill that makes sweeping changes to Act 250. The bill is the result of two years of work on the part of the House Natural Resources, Fish & Wildlife Committee.
  • As Town Meeting Day break and the unofficial halfway point of the legislative session approach, the COVID-19 outbreak starts to become a topic of conversation in the statehouse. It is becoming clear that the virus is beginning to spread around the United States.

Part 2 – The Crisis Begins – March and April 2020

  • Town Meeting Day break begins. Crossover has not yet occurred and there is now serious discussion about the possibility that COVID-19 could impact not only the legislative session but everyday life.
  • COVID-19 is declared a pandemic and Italy goes into lockdown. By the end of Town Meeting break it has become clear the legislature will have to cease in-person operations.
  • On March 7 the Department of Health announces the first positive test for COVID-19 in Vermont.
  • The legislature meets in-person for a final time during the week of March 9. By Friday, March 13 it is announced the legislature is shutting down.
  • On the same day Governor Scott declares a state of emergency and begins to hold press briefings on a near-daily basis.
  • Crossover deadlines are delayed and the normal course of legislative work ceases as legislative leaders, the Scott administration and statehouse staff work to determine how to move forward.
  • On March 18 Governor Scott orders all schools to close.
  • Limited legislative activity resumes the week of March 23 but only to work to establish a path forward. The Joint Rules Committee holds daily phone calls to try and figure things out. By rule, committees and the House and Senate as a whole cannot vote.
  • On March 25 Governor Scott issues a “Stay Home, Stay Safe” order. All non-essential public activity is ordered to stop.
  • The Department of Labor begins to be overloaded with unemployment insurance applications.
  • The Agency of Commerce and Community Development scrambles to establish criteria for what constitutes “essential” activity.
  • The Senate returns in person to vote to allow remote voting.
  • The House follows suit but not without some drama. The day of the in-person vote to allow for remote voting a handful of House members gather in the chamber. It has been agreed that no one will call for a quorum, which will allow the vote to happen without a majority of representatives in attendance. Representative Cynthia Browning calls for a quorum, which requires 76 House members to make their way to Montpelier to cast their votes in-person.
  • Speaker Mitzi Johnson strips Representative Browning of her committee assignment.
  • Congress passes and President Trump signs the CARES Act. It provides billions of dollars in relief to Americans, including direct stimulus payments, unemployment support, direct support to state governments and the Paycheck Protection Program.
  • By April House and Senate Committees are starting to meet somewhat regularly via Zoom although the focus is solely on the COVID-19 response.
  • Hospitals and other healthcare providers brace for what is expected to be a terrible month as infection as rates soar in places like New York City.
  • Governor Scott and the legislature focus on “flattening the curve,” an effort to minimize the increasing rate of infection in Vermont.
  • Governor Scott delays certain tax filing deadlines to July 15, 2020.
  • By mid-April it appears efforts in Vermont to minimize infection rates are having some success.
  • By late April Governor Scott feels confident enough in Vermont’s situation to start to open some restrictions on activity. The process of “opening the spigot a quarter turn” begins.
  • Limited outdoor construction work, indoor work limited to one or two people is allowed to resume.
  • The State of Vermont is allocated $1.25 billion in Coronavirus Relief Funds (CRF), an unprecedented infusion of federal aid.

Part 3 – The Recovery Begins – May and June 2020

  • As it becomes clear Vermont has been able to “flatten the curve” Governor Scott continues to open sectors of the economy.
  • Schools remain closed for the remainder of the academic year.
  • The first sign of disagreement between the Democratic-controlled legislature and Republican governor comes with a disagreement on which branch has the authority to allocate CRF. Ultimately it is decided that the executive branch can use $225 million for immediate operations but the vast majority of CRF will be allocated through the normal legislative appropriations process.
  • The adverse impact of COVID-19 on state revenues are revealed as state economists project revenue shortfalls of $143 million in FY2020 and $427 million for FY2021.
  • The House and Senate Appropriations Committees begin work on a second FY2020 budget adjustment and a “skinny” budget that will cover the first three months of FY2021.
  • Governor Scott allows outdoor recreation activity and small inter-family gatherings to resume.
  • Governor Scott proposes to fill the FY2020 budget shortfall with a combination of reserve funding and increased Medicaid dollars from the federal government.
  • House and Senate leadership start to determine which non-COVID 19 related bills will move during the remainder of the 2020 legislative session.
  • Governor Scott announces limited reopening of lodging establishments and retail operations.
  • Governor Scott proposes a budget for the first three months of FY2021 and calls for an eight percent reduction across the board.
  • Governor Scott proposes to allow school districts to revote their school budgets, the idea is widely panned by Democrats in the legislature.
  • The election filing deadline comes and goes and Governor Scott and Democratic Secretary of State Jim Condos engage in a high profile disagreement over mail-in voting. Condos ultimately wins the disagreement and maintains full control over the process.
  • The legislature approves the second budget adjustment, which closes the gap for FY2020.
  • The crossover deadline occurs more than two months late. Non-COVID-19 bills pass out of their chamber of origin.
  • Governor Scott proposes a $400 million CRF recovery program. It includes support for businesses, non-profits, agriculture and housing.
  • The killing of George Floyd by police in Minneapolis rocks the nation to its core. Governor Scott and state lawmakers condemn the killing.
  • Governor Scott creates the Racial Equity Task Force.
  • Protests against police brutality and systematic racism erupt across Vermont.
  • The House and Senate begin work on allocating CRF. The process is unusual although necessary due to time constraints. Policy committees take testimony on budget issues and then provide recommendations to the appropriations committees, which craft CRF legislation with limited testimony.
  • The legislature announces it will recess for the month of July and the first half of August. The idea is to return once the July 15 tax filings are in to finalize the FY2021 budget.
  • It is announced that schools will be allowed to reopen in the fall.
  • The legislature begins work on a $300 million CRF bill to support the health care system.
  • The legislature passes economic and health care CRF bills and approves a “skinny budget” to support the first three months of FY2021. This budget does not reduce funding as proposed by the governor.

Part 4 – The Final Budget – August and September

  • Many Vermont colleges reopen for in-person or hybrid instruction.
  • After the summer recess Governor Scott issues a budget “restatement.”
  • The restatement proposes to balance the budget without major cuts or tax increases and fills what is now a projected $66 million general fund gap through a variety of reallocations and vacancy savings. The governor also proposes a plan to allocate the remaining CRF.
  • The legislature reconvenes and dives into the process of creating a final budget for the entirety of FY2021 and allocating the remaining CRF dollars.
  • After more than six months the conference committee on S.54, the bill that would create a retail market for cannabis, reconvenes.
  • While most of the focus in the legislature is on the budget and CRF, the House works to finalize and pass the Global Warming Solutions Act, a bill that would turn the state’s greenhouse gas emissions goals into “requirements” and establish a commission to ensure the climate requirements are met. The bill also allows for private right of action against the state if the requirements are not met, a proposal Governor Scott opposes.
  • PreK – 12 schools reopen. Some are in person, some are hybrid and some are remote.
  • Vermont colleges and universities conduct frequent testing and impose stringent safety protocols, the efforts pay off, with a miniscule number of positive COVID-19 tests.
  • The House quickly passes a budget that largely aligns with the governor’s proposal, but includes additional money to support the Vermont State College system. The budget includes a plan to spend $233 million in remaining CRF, including $100 million for continued economic support for businesses.
  • Lawmakers and state infrastructure officials discuss contingency plans for reopening the 2021 legislature for in-person or hybrid sessions. Different locations in Central Vermont are considered including the Barre Auditorium and various state-owned buildings in Montpelier, Berlin and Barre.
  • H.926, the Act 250 bill, is significantly pared down in the Senate. It is questionable as to whether or not the bill will pass.
  • The House Passes H.688, the Global Warming Solutions Act.
  • A disagreement emerges between the House and the Senate over whether or not to include a cloud tax in the miscellaneous tax bill. The Senate, which opposes the measure, puts sections of the miscellaneous tax bill into the budget.
  • The Senate passes the budget after possessing the bill for less than one week.
  • Vermont PreK – 12 schools are well underway with minimal positive test cases throughout the student population. Colleges and universities continue to operate with very few positive tests.
  • The House and Senate agree to both S.54, retail cannabis, and H.688, the Global Warming Solutions Act. H.688 is sent to the governor.
  • Governor Scott vetoes H.688. The House and Senate successfully override the veto, making H.688 law.
  • The House and Senate approve a bill to limit excessive use of force by law enforcement.
  • The House and Senate approve a significantly pared-down H.926, the Act 250 bill.
  • The House and Senate work out their differences on the budget and tax bill – which does not include a cloud tax.
  • Nearly nine months after convening, the legislature adjourns the 2020 legislative session sine die on Sept. 25. A veto session is not set.

Part Five – Post Session

  • Governor Scott vetoes H.926, the Act 250 bill.
  • Governor Scott allows S.54, the retail cannabis bill, to become law without his signature.
  • Governor Scott allows S.119, the law enforcement use of force bill, to become law without his signature.

TOP #VTPOLI TWEETS


Leonine Public Affairs Please visit our website for our in-depth reporting on COVID-19 throughout the United States. This site is courtesy of Leonine FOCUS, our 50-state legislative regulatory, tracking and reporting service. The site is frequently updated and includes information on executive orders, legislation, regulation, tax deadlines and more from across the country.

Source: Leonine Public Affairs, Montpelier, Legislative Report Fall Session - October 9, 2020. leoninepublicaffairs.com.

Through a special arrangement with Leonine, Vermont Business Magazine republishes Leonine's legislative report on vermontbiz.com