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Legislature Week in Review: Happy hour, water tax, prescription drug costs

Submitted by tim on

Through a special arrangement with VBM, Leonine Public Affairs(link is external)provides a summary of legislative activity in Montpelier for week ending February 17. 2017.

HAPPY HOUR? NOT SO FAST

This week the Statehouse was relatively slow moving in terms of House and Senate floor action. The House did settle on the rules for the recount of the Orange-1 House race and there was a vote to elect new UVM trustees, but beyond that, action was light. Things should start to pick up as bills move out of committee in advance of the Town Meeting week recess in two weeks, which also marks the midway point of the 2017 legislative session.

Governor Phil Scott made his first official trip to Quebec City to meet with Premier Philippe Couillard this week. The focus of the trip was to strengthen ties between Vermont and its largest trade partner. The Governor and the Premier worked on strengthening economic security as well as environmental and energy partnerships.

Back at home the environment and energy were the focus of attention as well. The Vermont Council on Rural Development (VCRD) launched its Climate Economy Model Communities Program. VCRD will be partnering with Green Mountain Power, Vermont Electric Co-Op, Washington Electric Co-Op and Efficiency Vermont to strengthen economic opportunities in the state while simultaneously battling climate change.

Many Vermonters were greatly disappointed to see an amendment to legalize happy hours at bars defeated on the House floor this week. Representative Oliver Olsen, I-Londonderry, who led the charge would have been the most toasted elected official in our state had it passed. The issue will likely resurface later in the session after the committee that oversees alcohol has an chance to study the issue further.

TAXES ON THE TABLE FOR WATER CLEANUP
In his budget address, Governor Scott laid out a plan that would provide $50 million over the next two years to clean up Vermont's waterways. The Governor’s plan identifies $20 million in the FY18 and FY19 transportation and capital budgets, in addition to $10 million each year from existing revenue and other sources. Lawmakers must identify a long-term solution to the clean water effort. Treasurer Beth Pearce released a report earlier this year that estimated lake cleanup efforts will cost $120 million per year. Vermont currently has about $52.4 million in water-related revenue, mostly federal dollars, leading to a $67.7 million annual shortfall for cleanup efforts, of which the state share is estimated to be $25 to $30 million a year.

The House Committee on Natural Resources, Fish and Wildlife has identified an array of potential revenue sources to fund lake cleanup efforts, which include:

  • A one cent per gallon increase in the diesel and gas tax
  • A $5 surcharge on room occupancy
  • A one percent increase in the rooms and meals tax
  • Retaining a 0.2 percent surcharge on the Property Transfer Tax. The surcharge is set to sunset in 2018

The full list is estimated to rase $48 to $50 million annually. Click here to read an overview of all taxes and fees included in the list.These revenue options will need to be reviewed by the House Ways and Means Committee, which has jurisdiction over taxes and fees, before the package is brought to the House floor for a vote.
UVM TRUSTEES ELECTED
On Thursday, the House and Senate met in a Joint Assembly to elect three University of Vermont Trustees. Five current or former legislators were nominated for the positions: Rep. John Bartholomew, D-Hartford; Rep. Joey Donovan, D-Burlington; Rep Janssen Willhoit, R-St. Johnsbury; Sen. Debbie Ingram, D-Chittenden; and Former Speaker Shap Smith. After hearing nominating speeches for each candidate, the Joint Assembly voted by paper ballot, electing former Speaker Shap Smith, Rep. Donovan and Rep. Bartholomew. It was a powerful message that despite the fact that he is no longer a member of the Vermont General Assembly, Shap Smith received the greatest number of votes.
SENATE FINANCE COMMITTEE CONSIDERS FIXES TO A FIX ENACTED IN 2016 CONCERNING OUT OF POCKET PRESCRIPTION DRUG COSTS
In 2012 the legislature required all health insurance plans to contain a very low cap on out of pocket expenses associated with prescription drugs. Since then it has become increasingly difficult for insurers to develop so called “bronze” level plans that meet federal requirements. Insurance companies have had to significantly increase their bronze plans’ out of pocket exposure for medical services in order to keep their plans within the overall federally required actuarial parameters for bronze plans. In 2016 the legislature recognized the problem and passed a bill addressing it. It allows the Green Mountain Care Board to approve health plans for the 2018 plan year that do not contain the low limit on out of pocket prescription drug expenses so long as there are also available bronze level plans that contain the low prescription drug cost limit. Additionally, the 2016 legislation created an advisory group to look at longer-term solutions. This week the Senate Finance Committee took testimony on S.19, which would modify last year’s “fix.” Among other things the advisory group is directed to make recommendations on the creation of a special fund to help people with their out of pocket prescription drug costs and the possibility of modifying previously enacted insurance coverage mandates.

DRIVERLESS CARS
This week the House Transportation Committee heard from DMV Commissioner Rob Ide and Joe Segale of VTrans about “automated vehicle technology” a/k/a “driverless cars.” Commissioner Ide testified that Michigan and Pennsylvania have passed enabling legislation for driverless cars mostly for testing purposes and many other states are looking at passing laws to regulate their use. This is the “biggest change in transportation since the horse and buggy,” and will lead to safer roads, according to Commissioner Ide.

Joe Segale reviewed this list of potential benefits and consequences of driverless vehicles and policy issues that arise by their use.

FROM THE LEONINE BLOG
ICYMI, here is the 2017 Legislative Preview from Leonine FOCUS:
From the election of Donald Trump, to congressional gridlock, to Brexit, 2016 was a
year of heightened political activity. Some changes were expected, while others came
as a surprise. As we see the pendulum swing back to the right in the White House,
GOP lawmakers and governors also won big across the country in the historic November
elections. With Republican leadership at the executive level, control of congress and 33
red governor’s mansions, a push to return power to the states is already mounting. At the
federal level we will see a focus on repealing the Affordable Care Act, immigration reform,
trade deals, tax cuts and increased infrastructure spending. These same themes trickle
down and will be the focus of lawmaking throughout blue and red states alike this session.

Click here for the full report.
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