House passes family leave bill H.66, Scott sticks to own plan

Vermont Business Magazine The House on Thursday evening gave preliminary approval to H.66, a bill that gives Vermonters up to 12 weeks of paid family and medical leave insurance with 90% pay and employment protection. The legislation provides leave for a variety of health conditions for both employees and their family, including but not limited to miscarriage, residential treatment for substance use disorder, childbirth, and child bonding. The House gave final approval Friday and sent it to the Senate. Governor Scott has put forth a voluntary family leave plan and voiced his opposition to H.66 as currently constructed. The second reading roll call vote, with several lawmakers absent, was 99-32, one vote shy of what would be needed for a veto override. Lawmakers passed a similar bill in January 2020, but ultimately failed to override Scott's subsequent veto.

"A universal paid family and medical leave insurance program is a major step forward for Vermont families, employees, and employers," said Speaker of the House Jill Krowinski. "We know that when people have the peace of mind that they can leave their job to care for themselves or their loved ones, they are more likely to prioritize their health and return to the workforce. This program will also help Vermont businesses attract and retain talented employees by offering a crucial benefit that is increasingly expected in today's workforce."

“Vermonters know that the health and resilience of our families and communities are integrally connected. Last year, we put these values into action when we passed the historic Child Tax Credit and expanded the Earned Income Tax Credit. Today, we’re ready to build on this commitment by enacting legislation that strengthens our capacity for care - universal family and medical leave, child care funding, and universal school meals,” said Rep. Emilie Kornheiser, Chair of the Ways Means Committee. “When caregivers are supported, and kids’ basic needs are met, we’re stronger as a state. As lawmakers, we have the responsibility to make this happen. We delivered on that promise to our communities today.”

“The pandemic further highlighted the need for this important program, and it would be a grievous error to leave Vermont’s workforce and businesses vulnerable to job loss, work interruptions, or career instability,” Speaker Krowinski said. “This bill will help grow a workforce and economy that has long been plagued by a lack of equity depending on your gender, age, or economic status. With this legislation, we are committing to a state where children have a higher likelihood of success and opportunity; a state where we support our workforce and their commitment to family; a state where those with disabilities and those that need medical care can receive the care they require without fear of penalty.”

Governor Scott issued the following statement regarding the paid family leave bill being considered by the House:

“It’s important to know, I support universal access to paid family and medical leave. That’s why my Administration put forward a voluntary program that is now being implemented.

“Today, however, the House of Representative is considering a bill that, instead of being voluntary, would impose a mandatory and regressive payroll tax on Vermonters, costing an estimated $117 million every year. The House also envisions building and funding a new program from scratch, requiring the addition of over 60 new state employees. This will be no easy task, as we are currently facing a workforce shortage and presently have over 800 open positions in state government that we’re unable to fill.

“This bill would rely on building out a whole new division, a complicated IT system, and more. My plan offers universal access to paid family and medical leave more efficiently and more cost effectively, and with far less risk to the State by using a third party administrator who knows what they’re doing, and wouldn’t have to start from scratch.

“With record state surpluses and high inflation, it is counterintuitive to force a new broad-base tax on already overburdened Vermonters – especially when there is an alternative path to achieve our goal.

The Vermont Family and Medical Leave Insurance Plan my Administration is moving forward with provides Vermonters access to paid family and medical leave insurance faster, with a more stable, predictable system, provided by an experienced outside entity that is fully capitalized, and without imposing a new, regressive universal tax on workers and employers.”

Before the second reading and vote of the bill, representatives offered these comments:

Rep. James of Manchester explained her vote as follows:

“Madam Speaker: H.66 offers paid, job-protected leave that will help Vermont workers to
navigate life’s inevitable medical challenges and milestones. As our State faces
a deadly opioid epidemic, I am especially grateful that it covers time off for
substance misuse treatment. I’m proud to have voted yes."

Rep. McCarthy of St. Albans City explained his vote as follows:

“Madam Speaker: I vote yes. Every working Vermonter deserves to be able to take time off to
welcome a child, recover from an illness or care for a loved one without the
fear that they won’t be able to pay their bills. Universal paid leave is good for
families, workers, and Vermont businesses. This plan would cover all
Vermonters and won’t leave anyone behind."

Rep. Smith of Derby explained his vote as follows:

“Madam Speaker: The Governor has a plan that won’t further bury the State of Vermont into
deeper debt. It’s pretty easy to spend taxpayer dollars as just witnessed by this
vote. That is the reason for my No vote."
Thereupon, third reading was ordered.

Details of Bill H. 66 - An act relating to paid family and medical leave insurance, can be found here.

3.23.2023. Montpelier, Vt. – Speaker. Governor.