Vermont Legislature SmartTranscripts:

[Speaker Jill Krowinski]: Will the house come to order and members kindly take their seats? Will the house please come to order? Members earlier today, the committee on ways and means reported favorable with amendment on house bill nine fifty four which is an act relating to approval of the amendment to the charter of the town of Stowe. The first assistant clerk emailed you this committee report at 05:17 today. It is also posted on the house overview webpage and paper copies are available at the main table. Member from Pulte, can you please offer us a motion to suspend rules to take up House Bill nine fifty four for immediate consideration pending its entry on the notice calendar?

[Representative Patricia McCoy]: Madam Speaker, I make a motion to suspend rules in order to take up for immediate consideration pending its entry on the notice calendar, h nine five four.

[Speaker Jill Krowinski]: The member from Pulte moves that we suspend our rules to take up house bill nine fifty four for immediate consideration pending its entry on the notice calendar. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. The ayes appear to have it. The ayes do have it and you have suspended rules to take up house bill nine fifty four for immediate consideration. House bill nine fifty four is an act relating to approval of an amendment to the charter of the town of Stowe. The bill was referred to the committee on government operations and military affairs which recommends that the bill ought to pass. The member from Charlotte, representative Waters Evans will speak for the committee And then materially affecting the revenue of a municipality, the bill was referred to the committee on ways and means which recommends that the bill be amended. The member from Barrie City, representative will speak for that committee. Please listen to the second reading of the bill.

[House Clerk (Reading Clerk)]: H nine five four, an act relating to approval of an amendment to the charter of the town of Stowe.

[Speaker Jill Krowinski]: Member from Charlotte.

[Representative Chea Waters Evans]: Madam speaker, your house government operations and military affairs committee, voted favorably for an amendment to the charter of the town of Stowe with a vote of seven four zero. It is a fairly simple amendment to the charter. Stowe already has a 1% local option tax. This is adding another 1% onto that tax, So it is a total of a 2% local option tax. The voters of the town of Stowe approved it at a town meeting. Their vote was hold, please. Four sixty seven to three ten. There were 19% of Stowe voters participating in that election. It so it adds it was 03/03/2026 that that they made that vote. That was town meeting day. Right? Okay. So it is a 2% local option tax on rooms, meals, and alcoholic beverages, and it is also not applicable to food or apparel. And the house government operations and military affairs committee heard from the owner of the Field Guide Lodge, the chair of the Stowe Select Board, legislative council from the opposite of legislative council, the owner of Tangerine and Olive, the sponsor of the bill, who is the representative from Stowe, the co president of Stowe Vibrancy, the owner of Cork Restaurant, Cork Market, and Candy Castle, the owner of Northwood Gallery, an associate fiscal officer from the joint fiscal office, a member of the Stowe Select Board, the town manager from Stowe, the co owner of Once Upon a Time, Toys, and, the representative, sponsor of the bill sorry. And, as I said, we voted seven four zero to approve this, and we ask for the body's support.

[Speaker Jill Krowinski]: And now for the committee on ways and means, member from Barrie City.

[Representative Edward "Teddy" Waszazak]: Madam speaker, your committee on ways and means reviewed h nine fifty four and recommends that the bill ought to pass when amended by your committee on ways and means. The ways and means amendment strikes section two and replaces it with a new section two. The change comes in section nine zero four subsection b wherein of the new 1% local options tax, half of that money would be allocated to the town of Stowe, while the other half would be placed in a new local options municipal transportation special fund. While there is no fiscal note, JFO estimates that in fiscal year twenty seven, this would raise approximately $3,600,000, half of that to the town of Stowe, half to the new local options Municipal Transportation Special Fund, And in f y twenty eight, which would be the first full year that this is in effect, this would result in approximately 4,800,000, meaning 2,400,000 in revenue for the town of Stowe and 2,400,000 for the local options municipal transportation special fund. Your committee on ways and means heard from two members of legislative council, office of legislative council, and a senior fiscal analyst from the joint fiscal office, and recommends that the bill ought to pass as amended on a vote of eleven zero zero and asks for your support.

[Speaker Jill Krowinski]: Member from Charlotte.

[Representative Chea Waters Evans]: Madam speaker, your house government operations and military affairs committee, took a testimony from, the representative from Stowe and found, in a straw poll of six five that, the ways and means amendment was favorable and we thank them for their hard work and we ask for the body support.

[Speaker Jill Krowinski]: So the question is, shall the bill be amended as recommended by the committee on ways and means, member from Stowe.

[Representative Jed Lipsky]: Thank you, madam speaker. Madam speaker, before I integrate the presenter of the amendment, I have a few comments. As the lead sponsor for this bill, I was a little shocked that when it was taken up this morning in gov ops, I was never invited to at least to attend. It was being discussed. That was kind of a surprise. And then when I I just happened to be walking by the this afternoon, the Ways and Means Committee, and a member mentioned, hey, we just voted out the the h nine fifty four. Oh, and by the way, there was an amendment to it, which we also voted out. So I just wanna let the body know that I think proper protocols, courtesies, transparencies when you're developing a policy or changing a policy to engage with the bill sponsor or sponsors. In this case, there were two co sponsors who represent a sliver of Stowe in Morristown, Elmore, Woodbury, Worcester. So with that said, I did go down to attend earlier this afternoon the discussion in the gov ops, and I thank that committee for inviting or allowing me a chance to weigh in. And felt as awkward as it was, I felt it was my obligation to answer some questions. And one of the questions which was unanswerable because these local option taxes, and there were two categories, were presented to the Stow voters that the town of Stowe would receive 75% of those revenues, and the state would receive 25%. And as we know, they do go into a pilot fund or have heretofore gone into a a pilot fund. How did I feel that the voters that voted for this would feel honestly, I had no ability to weigh in at all on how those who participated in the vote for the local option taxes felt. But I did share with the committee that I've had numerous conversations with the leadership in Stowe. And by leadership, I'll refer to the our town manager about the possibilities of advancing this charter change this session. And I and I shared with him that I've heard rumors or rumblings around the building, none of these specific, that they were hoping that a portion of this could go towards the transportation fund. This was in March 2026, and I heard it again in April. But no one ever no committee ever approached me on this. So the town manager asked me, how did I feel about it, and I shared my remarks to the committee around 02:30 or 03:00. And that those were that and I said 50% of a loaf I learned long ago was better than no loaf. And then I said, doing some quick arithmetic, that for the town of Stowe, they were actually receiving 66.666% of the loaf, not 50%. And knowing how dire the needs in Stowe are for infrastructure and road infrastructure and other needs within the town, that possibly two thirds of a loaf would be better. And also, as the whole body knows, our tea fund is in deep red, and many towns are suffering. I stopped to get some signatures for my petition. I went into a bar room last night. One customer said, hey, Jed. How about if the the Mountain Road, which is Vermont 108, goes from the village up to the Canadian border, but goes to Smuggler's Notch. He says, it's worse than a class four road now. Can't you find some money to repair that, a state highway? He said, put in a bill that Vale Resorts that run the paid parking up there, take those funds and and have them all directed to fixing up Route 108. I said, not this session. But I say that as a point, everyone in the state is struggling with their highway obligations. So with that, madam speaker, I just would like to interrogate the presenter of the bill for a clarification.

[Speaker Jill Krowinski]: The bill or the Ways and Means Amendment? We are on the Ways and Means Amendment.

[Representative Jed Lipsky]: Let's talk about the ways ways and means, please.

[Speaker Jill Krowinski]: The member from Berry City is interrogated.

[Representative Jed Lipsky]: The original language of the bill, madam speaker, I think focused on two different 1% taxes. One was for rooms, meals, and alcohol, and the second was 1% tax additionally on the 1% local option sales tax. And I've just read this as best I could, and I just see one sentence under nine zero four local option tax a. It says the select board is authorized to impose a 2% local option tax on sales, comma, rooms, comma, meals, comma, and alcohol beverages. When the word sales is not is that the way this is written to include the second local option tax?

[Representative Edward "Teddy" Waszazak]: Yes, madam speaker. The 2% local options tax would be levied on sales, rums, meals, and alcoholic beverages. So all four of those categories would be subject to the 2% local options tax.

[Representative Jed Lipsky]: Thank you, madam speaker.

[Representative Chea Waters Evans]: Thank you.

[Representative Jed Lipsky]: And I guess I should further inform the body. Now this isn't all the those voters or residents that weighed in on this issue. I did speak to the chair of the select board, and I asked if this board had met on this new amendment or had one to weigh in. And I said between now and when it gets taken up by their Tuesday or later in the day, could you have a straw poll for me on how they felt about it? And a person got back to me an hour and a half ago and said three board members supported the bill as amended and two did not. And there was other discussion we had about the way this process has played out. There has been no opportunity to negotiate, like, could it be a 62 and a half percent to 37 and a half percent split or any other possibility between what the original bill had at. So again, I think for the community of Stowe and for the function of this body, I think we could do better. Thank you, madam speaker.

[Speaker Jill Krowinski]: The question is, shall the bill be amended as recommended by the committee on ways and means, member from Derby?

[Unidentified Member from Derby]: Thank you, madam speaker. May I interrogate the member from Ways and Means?

[Speaker Jill Krowinski]: The member from Berry City is interrogated.

[Unidentified Member from Derby]: Madam speaker, I've understood that these law of local option tax, it's been customary that it's three quarters back to the municipality and one quarter to the state of Vermont, which is supposed to cover pilot. And we've learned from the member from Swanton that there's a buildup of funds in there, and it should go to different places, perhaps the transportation bill. My question is to the presenter, the member from Barrie City, is where did you come up with the authority to change the three quarters to a quarter to a 50% split?

[Representative Edward "Teddy" Waszazak]: Madam speaker, the 75% to 25% split is for the first 1% local options tax, and that is true of every municipality that has a local options tax. What's new here is that the town of Stowe is the first in the state to levy this additional 1% local options tax. So in other words, we're not changing anything about how local options tax works for that first 1%. It's that second 1%, which is unprecedented in Vermont, which creates this fifty fifty split between the municipality and this new special fund.

[Unidentified Member from Derby]: Madam speaker, so ways and means is do they have the authority to be to set new levels on these option taxes even though you go from 1% to 2%? Does Ways and Means have the authority to be judge and jury on that change?

[Representative Edward "Teddy" Waszazak]: My understanding, madam speaker, is that Ways and Means has jurisdiction over local options taxes and the percentages that are allocated based off those revenues raised. For example, last year, madam speaker, ways and means proposed through the flood bill to change from 7030 to 7525, and that percentage has changed many times over the decades of existence of the local options tax. So in short, yes, madam speaker, we have that authority on ways and means.

[Unidentified Member from Derby]: Alright. Thank you, member. Thank you. Thank you for the answer. I I didn't know. Stowe is a great revenue driver for the state of Vermont, without a doubt. Also, the residents of the town of Stowe have to put up with it being a rate great revenue driver for the state of Vermont. And in the wintertime, it's a bad day when I have to drive through Stowe at certain times of the day, but I do it because it's the shortest distance between two points, and I believe in the shortest distance. And my good friend, the representative from Stowe lives there. And so I'm a little bit split on this, and it won't discourage me from going to Stowe to go out to eat with my lovely wife, the animal mechanic, because a $45 steak in Stowe with an extra 1% is not gonna stop me from having that stake in Stowe. Although it's $25 in Derby representative for Stowe. I just wanna let you know that. So anyway, thank you for the answers, and I will wait. I almost wonder if we should bifurcate the bill on the Ways and Means Amendment to the to the work done by government operations and military affairs. And and I don't know if we can do that, madam speaker. So thank you.

[Speaker Jill Krowinski]: The house is standing at ease for a moment. Will the the house please come to order and members kindly take their seats? I am going to take the members last comment as more of a point of inquiry and the answer is no. So the question is shall the bill be amended as recommended by the committee on ways and means member from Burlington.

[Unidentified Member from Burlington]: Madam speaker, I will begin by acknowledging that I most certainly have a chip on my shoulder regarding city charters that are held hostage. My town has a few that are unfortunately not being considered, and the will of the voters is thereby completely disregarded. I'm standing mostly to just validate the concerns presented by the member from Stowe, and especially around the procedure and the transparency of how this all kind of played out without an invitation to be a more significant part of that process. I don't think that's good process at all. This amendment, I think, changes in fundamental ways what the residents of Stowe voted on, and I'm not I'm not convinced that the the vote would have gone the same way had it been presented in this manner. For those reasons, I will not be supporting this amendment, and I don't think should the amendment pass that I would support the the underlying bill.

[Speaker Jill Krowinski]: The question is, shall the bill be amended as recommended by the committee on ways and means? Member from Thutber.

[Representative James Masland]: Thank you Madam Speaker. I'd like to clarify a couple of questions that I think I understood in the back and forth between the members here. One, by way of background, local option taxes have been present in Vermont for quite some period of time and they've come through various pieces of legislation at various times and it may appear to some people that they don't align with each other very well and I guess that's the case. But I want to address specifically the question of whether or not Ways and Means had authority to do what we did in the bill and the answer is whether or not the authority exists. I want to assure everybody in the chamber that Ways and Means works very carefully with JFO and ledge counsel. Very well considered what we're doing. It's not something that ways and means cooked up on itself if I on its own if I could use sort of colloquial language. So I want to assure the members that Ways and Means worked very hard to get this language correct and also carefully considered the percentages of what money goes into what pots, which has also been considered and has been an issue. Sorry Madam Speaker, I'm supposed to be addressing you, for quite some period of time. And so, what I want to assure the members is we worked very hard to get the right language after talking to JFO and the members that came before us in committee to get this right and I think we did a good job madam speaker. Thank you.

[Speaker Jill Krowinski]: The question is shall the bill be amended as recommended by the committee on ways and means? Are you ready for the question? Member from Wakesfield.

[Representative Dara Torre]: Madam speaker, could I interrogate the presenter of the amendment?

[Speaker Jill Krowinski]: The member from Ways the member from Barrie City is interrogated.

[Representative Dara Torre]: Thank you. So just want to say I I really appreciate this idea of creating the the local option municipal transportation special fund using these LOT dollars because we all recognize that municipalities are really struggling to pay for road maintenance. So, that makes a lot of sense. And, I'm just sharing some concern, some of the concerns that the member from Burlington expressed. And, it's really about the percentages, the fifty fifty percentage. So, I'm just, member, would you could you just share a little bit of the thinking about the fifty fifty split? Because I I too am thinking that if I voted on this in March, kind of assuming that the local option tax has a 2575% split. This is a significantly different split. And so, it it I'd just like to have a better understanding of that. Thank you.

[Representative Edward "Teddy" Waszazak]: Thank you, madam speaker. Yes. I think that the motivation for this amendment, specifically in regards to the creation of the local options municipal transportation special fund, which is a fun name, is the road conditions here in Vermont. This is I know the member is no stranger, to the funding challenges facing the transportation fund. And as this additional two percent is an unprecedented new local options tax that is not in place anywhere, it felt like in conversations throughout the body and with the other chamber in the context of the transportation fund, it felt that this was an opportunity to bring needed badly needed moneys to for road repairs throughout the state of Vermont. You know, my city, my municipality, Berry City, and the municipality of Stowe are similar in that we have many, many state roads that are in desperate needs of repair. So the thinking was that this could bring some significant funding into road and infrastructure repairs in the context of this unprecedented new 2% local options tax.

[Representative Dara Torre]: I thank the member for that.

[Speaker Jill Krowinski]: Are you ready for the question? Member from Stoke.

[Representative Jed Lipsky]: Madam speaker, I would before I ask for a brief recess to counsel with you, madam speaker, and the presenter of the amendment, and perhaps gov ops. I I just wanna allow when I was in the hall and my concerns for Burlington, South Burlington, but it so it turns out, Stowe raises more money on rooms, meals, and alcohol than any other community in the state. Or let me correct it. Burlington and South Burlington, I believe, raised more on rooms, meals, and alcohol. Stowe is third. Stowe is also in the top four in sales and use taxes, but second to Williston and Colchester. And this is relevant to this discussion because it's also I've been told that the town of Stowe taxpayers send more money than any other municipality to the education fund. So I bring up these statistics because STOW has had a long history of contributing to the welfare and well-being of people in the state, as well as state government and all the agencies that depend on this town of Stowe as an economic driver. So I would be interested, madam speaker, if we could have a recess or to discuss options for it may impact the fifty fifty versus sixty forty or some other number. That's my request.

[Speaker Jill Krowinski]: Members, the house will stand in recess for approximately two minutes. Will the house please come to order? Will the house please come to order and members kindly take their seat? The question is, shall the bill be amended as recommended by the committee on ways and means? Member from Stowe.

[Representative Jed Lipsky]: Madam speaker, I just wanted to share with the body that despite my challenges with the process, I stand to support this bill as amended. I think it and I've consulted with my two co sponsors and they too will support it. Thank you, madam speaker.

[Speaker Jill Krowinski]: Member from Norwich.

[Representative Rebecca Holcombe]: Madam speaker, I feel I need to say something. First of all, I wanna thank the representative from Stowe who is a stout supporter of roads and a great member of this caucus. I feel I need to say, I'm sorry. I feel bad that somebody who represents their community did not have an opportunity to represent their community in our committees, and so I am apologizing to the members from STOW because we are here to serve them and their people, and we have an obligation to a transparent and inclusive process that lets them advocate for their communities. So, again, I am sorry.

[Speaker Jill Krowinski]: Are you ready for the question? Member from Burlington.

[Unidentified Member from Burlington]: Madam speaker, first, I'm just trying to be careful here. This is this is when this happens, excuse me, when this happens, I I just think it's incredibly unfortunate. I wanna first, express my gratitude, to the member from Stowe and the cosponsors, for the graciousness by which they're navigating this. When procedure like this falls apart, it's it's the eleventh hour. And to watch this happen and to know a little bit about kind of the back background behind why this is happening, but not enough to be able to articulate that right now in this moment, but how this is being tied to the brinksmanship that happens, this time of year, again, in the eleventh hour. It's just incredibly frustrating. This is why people getting angry with us. This is why people don't trust us. This is when we do these sort of backroom sort of navigations of getting this build over there, then it's again, I don't know enough about it, but I know there's stuff going on. And this is I I I don't even know what to say. I'm just really frustrated at the process that was incredibly disregardful of the very people who should have been at those tables. I appreciate the apology, but this is the eleventh hour, and you're just bypassing the fundamentals of a democratic process and representation of our communities. That's what's happening right now. Right now, we're about to let it happen, and it's frustrating to watch. So I again, I'm I'm I'm not gonna support this amendment. I think it's bad form. I'm not gonna reinforce that behavior. This is behavior mod one zero one. So no. This is, I incredibly frustrating. I don't know how else to express it.

[Speaker Jill Krowinski]: The question is shall the bill be amended as recommended by the committee on ways and means? Member from Clerton.

[Unidentified Member (possibly from Clarendon)]: Thank you, madam speaker. May I please interrogate the presenter of the amendment?

[Speaker Jill Krowinski]: The member from Barrie City is interrogated.

[Unidentified Member (possibly from Clarendon)]: I'm curious, speaker, about this local option municipal transportation special fund as to who has spending authority over it and who has overall responsibility for managing that fund.

[Representative Edward "Teddy" Waszazak]: Madam speaker, may I consult with legislative council?

[Speaker Jill Krowinski]: The house of Stanton East for a moment. Will the house please come to order and members kindly take their seats? Will the house please come to order? Member from Barrie City, the floor is yours.

[Representative Edward "Teddy" Waszazak]: Thank you, madam speaker. I needed a brush up on my special fund procedures on this Friday night. So this special fund is being created in the senate's version of the big bill, the senate's version of the budget that is still being hammered out. But generally, it would be treated similarly to any other special fund in that all of the money would be appropriated through the legislative process. So in the moving forward, over the course of building the T bill in the transportation committee, this money could be appropriated to existing agency of transportation programs such as the town highway aid or the grant program that we have for structures and class two roads. And the money would be appropriated in or authorized in the t bill and appropriated in the budget bill. So the short version is, madam speaker, that the legislature would make those decisions in the future through the t bill and the big bill, meaning through the transportation committee and the appropriations committee.

[Unidentified Member (possibly from Clarendon)]: Madam speaker, I appreciate that clarification. Thank you, member.

[Speaker Jill Krowinski]: Thank you. So the question is, shall the bill be amended as recommended by the committee on ways and means? Member from Woodstock.

[Representative Charles Kimbell]: Thank you, madam speaker. I rise in support of the amendment, and support of my colleague from Stowe. And I wanna point out for the body how unusual it is to have a local options tax more than 1%. So there are only two municipalities. My colleague from Barrie City was right in that there this sets a precedent in a way because there are only two that have it in their charter to charge more than 1% right now, and that is those are the cities of Rutland and Burlington, but they also administered those local option taxes. So it is highly unusual for any community to vote by to have in their charter from the authority of the select board to actually impose a 2% local options tax. So this is highly unusual. It's unprecedented. But it's worth the the voters of STOW obviously supported this, put it in their charter change, and here we are voting on the charter to make that happen. So I think it's worthy of their of support. And so thank you for bringing it to us.

[Speaker Jill Krowinski]: Are you ready for the question? If so, all those in favor please say aye. Aye. All those opposed, please say nay. Nay. The ayes appear to have it. The ayes do have it, and you have amended the bill. Now the question is, shall the bill be read a third time? Are you ready for that question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it and third reading is ordered. Member from Pultely, can you please offer us a motion to suspend our rules to place House Bill nine fifty four and all remaining stages of passage?

[Representative Patricia McCoy]: Madam Speaker, I make a motion to suspend rules in order to place h nine five four and all remaining stages of passage.

[Speaker Jill Krowinski]: The member from potently moves that we suspend our rules to place house bill nine fifty four and all remaining stages of passage. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it. And you have suspended rules place house bill nine fifty four in all remaining stages of passage. Please listen to the third reading of the bill.

[House Clerk (Reading Clerk)]: H nine five four, an act relating to approval of an amendment to the charter of the town of Stowe.

[Speaker Jill Krowinski]: The question is, shall the bill pass? Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. The ayes appear to have it. The ayes do have it and you have passed the bill. Member from Pultely, can you please offer us a motion to suspend rules to message our action on house bill nine fifty four to the senate forthwith.

[Representative Patricia McCoy]: Madam speaker, I make a motion to suspend rules in order to message our actions on h nine fifty four to the senate forthwith.

[Speaker Jill Krowinski]: The member from Hultney moves that we suspend our rules to message our action on house bill nine fifty four to the senate forthwith. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it and you have suspended rules to message our action on house bill nine fifty four to the senate forthwith. Members at that at this time those are all the bills for our agenda tonight. So with that, that completes the orders of the day. Members, earlier today the committee on ways and means reported favorably on senate bill 64 which is an act relating to amendments to the scope of the practice for optometrists. Carrying an appropriation, the bill is referred to the committee on appropriations pursuant to house rule 35A pending its entry on the notice calendar. Are there any announcements? Member from Westminster.

[Representative Michelle Bos-Lun]: Thank you, madam speaker. I would just like to make a very quick announcement of a very special person. My son, Erin Bos-Lun, is in the balcony. He came to visit me in Westminster and decided to pop up and catch me in action here on the floor. So if you have a chance to see Erin in the five minutes more, he'll be in the building. Please do that.

[Speaker Jill Krowinski]: Will the guests the family of the member from Westminster please rise and be recognized? Are there any further announcements? Member from Manchester.

[Representative Patricia McCoy]: Madam Speaker, the member from Manchester who is not me has a birthday tomorrow.

[Speaker Jill Krowinski]: Happy birthday member. Are there any further announcements? Seeing none, member from Polkney, can you please offer us a motion to adjourn until Tuesday, May 26 at 10AM?

[Representative Patricia McCoy]: Madam speaker, I make a motion this body stand in adjournment until Tuesday, 05/26/2026 at 10AM.

[Speaker Jill Krowinski]: You have heard the motion. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it, and his body stands in adjournment until Tuesday at ten.