Legislature Reaches Halfway Point – An Update
The Vermont Legislature has returned from its week-long Town Meeting Day break, marking the approximate halfway point for the 2023 session. The cross-over date for policy bills is March 17, and money bills is March 24. While there are some exceptions, such as the Cloud Tax in the past, these dates generally indicate which bills are most likely to make it into law.
Here's a brief status on legislative issues the VTTA is following:
Cloud Tax
So far, there has been no activity in House Ways and Means on the standalone Cloud Tax bill H.120, which would add the sales tax to Internet services and infrastructure. However, the Cloud Tax has been mentioned as a potential funding source for several initiatives, including free school meal programs. The VTTA has long opposed the tax due to the increased costs it would add to tech and all businesses that use and depend on online applications and services
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VEGI
The House Committee on Commerce and Economic Development has been reviewing and discussing H.10, the bill seeking to make changes to the Vermont Employment Growth Incentive (VEGI) program. The original version of this bill would have essentially ended the program. The VTTA communicated its support of the program, which has benefited a range of tech businesses. The committee decided it supports a business incentive program, but not necessarily the VEGI program. The latest version of the bill extends the current program until 2025, and creates a task force to study “current State-funded economic development incentive programs, and models of economic development incentive programs from other jurisdictions.”
Privacy Bill
The House Commerce Committee also started review of a data privacy bill, H.121, which includes requirements on the collecting and sharing of personal information, such as for marketing purposes, and rules around the use of biometric data, which are based on an Illinois law. The legislative counsel raised concerns about the bill, including its breadth and scope, requirements of data collectors, and its enforceability.
The VTTA has concerns about the bill, as do several industry groups. In particular, the inclusion of private right of action, which in Illinois has led to hundreds of “gotcha” class-action lawsuits being directed at businesses. The VTTA believes privacy legislation in other states may provide a better model for Vermont.
Paid Family Leave/Child Care
A proposed paid Family Leave Bill. H.66, would offer participants 100% wage replacement, up to the state’s average weekly wage ($1,135 in 2022) for the duration of their leave. The current plan is to fund the program with a 0.55% payroll tax. The Joint Fiscal Office estimates the initial startup cost for the program is $40.2 million of one-time funding. The annual cost to administer the program would be $13 million and require 45-50 new employees to manage it.
The Senate Health and Welfare Committee is continuing work in a Child Care Bill, S.56. which would establish The Child Care Financial Assistance Program “to subsidize, to the extent that funds permit, the costs of child care for families that need child care services.” However, there is no clear estimate of the cost and how it will be paid for, but a payroll tax also has been proposed for this program.
The VTTA is supportive of these programs, but with an eye on the potential costs to implement both and its impact on businesses.
Housing
The Senate Committee on Economic Development, Housing, and General Affairs passed an omnibus housing bill. S.100, which is referred to as the HOME Act. The bill focuses on removing regulatory barriers at the local and state level to make it easier for housing to be constructed. It also includes funding to support homes and rental properties that are affordable to middle income families. The legislation has moved to the Senate Natural Resources Committee, where some of the proposed changes to zoning and Act 250 could be at risk. The VTTA supports this bill as an important tool to help address the state’s housing shortage.
SALT Cap
An elective pass-through entity tax that would help Vermont business owners save on their Federal State and Local Tax (SALT) deductions, S.45, passed the Senate. The bill now goes to the House, where it may not find as much support. The VTTA supports this change, which has been implemented in other states.
Labor Bill
The Senate Economic Development, Housing, and General Affairs Committee, discussed S.102, which would end Vermont as an “at-will” state for ending employment and instead would establish a “good cause” standard for termination of employment. It would also require employers to provide severance pay, and enable employees to bring an enforcement action for violations of the good cause termination requirement. The VTTA sees this bill as problematic, and Michael Harrington, commissioner of the Department of Labor, was not supportive of the bill as written.
If you have questions, comments, or concerns on these or other legislation, please reach out to me at jeff@vtta.org.
Jeff Couture
Executive Director
Vermont Technology Alliance
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Coffee with a Tech Leader – Dr. Narine Hall
(March 29, 2023 – Hula)
The VTTA presents “Coffee with a Tech Leader,” March 29 at 11 a.m. at Hula featuring with Dr. Narine Hall, CEO of InSpace. Grab a coffee and join us in the Sunset Room to hear Narine discuss this innovative, education-focused virtual meeting platform.
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X-Ray CT Scanning and Analysis Technology for Designers and Manufacturers
(March 28, 2023)
The Vermont Manufacturing Extension Center (VMEC) is hosting an event at Generator to introduce X-Ray CT Scanning and analysis technology to designers and manufacturers. The technology is available to industry through the Vermont Manufacturing Collaborative (VT-MC) and Advanced Manufacturing Center.
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Invention2Venture Conference
(April 20, 2023)
The 18th annual Invention2Venture Conference presented by UVM Innovations will be held April 20 at the UVM Alumni House. The annual conference brings together academic researchers, students, entrepreneurs, and business leaders from across Vermont.
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MindEdge & VTTA Professional Development Offering |
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Beta Technologies Opens Satellite Office in Montréal
(March 9, 2023 – Seven Days)
Beta Technologies, the South Burlington-based electric aviation startup, has opened an office in Montréal.
Beta tapped into the aerospace hub’s talent pool to hire at least 50 employees who will focus on structural engineering and materials processing.
Montréal has one of the largest aerospace industries in the world, employing nearly 60,000 people at hundreds of firms, according to Aéro Montréal, an industry group.
In a statement, Beta founder and CEO Kyle Clark said the city in Québec has been part of the company’s long-term plan. “We have already added a highly skilled team to our ranks in Montreal, and we look forward to continuing to tap into the wealth of experience and talent in the region as we grow,” he said.
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Two Vermont Cities Land on List of Happiest in America
(March 3, 2023 – NECN)
Feeling down? You might want to consider moving to the Green Mountain State, where a pair of neighboring cities just got recognized as among the happiest in the country. (Also Maybe another reason for a tech career in the state)
According to WalletHub's new "2023's Happiest Cities in America" report, location can play a big role in how happy -- or unhappy -- people in different parts of the country are. To create the report, the finance website says it "drew upon various findings of positive-psychology research in order to determine which among more than 180 of the largest U.S. cities is home to the happiest people in America."
"We examined each city based on 30 key indicators of happiness," the report goes on to say, "ranging from the depression rate to the income-growth rate to average leisure time spent per day."
The city that ranked the happiest on the list is Fremont, California, which earned top scores in the report's "emotional and physical well-being" category. The city that ranked dead last on the list, the report shows, is Detroit, Michigan.
And landing right in the middle were two cities in Vermont: Burlington and South Burlington, at Nos. 9 and 10. That makes them the happiest places in New England, at least according to WalletHub.
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2023 Vermont Small Business Economic Survey Finds Optimism for Vermont’s Economy.
(February 27, 2023 – Davis & Hodgdon)
Businesses responding to a recent small business economic survey revealed that there is more optimism in business owners’ attitudes about the Vermont economy than there is optimism for the U.S. economy. Also noteworthy is that most business owners are optimistic about their operations and profitability in 2023, and many have made significant adjustments to their business models to adapt to post-pandemic life.
More than 100 Vermont businesses from diverse industries completed the annual economic survey in January presented by VTTA Member Davis and Hodgdon CPAs and the Vermont Chamber of Commerce.
Business owners were once again asked to identify the top three issues facing their business in 2023. Respondents identified finding qualified employees (68%), health insurance costs (62%), and Vermont taxes (33%) as their top three issues. Pandemic-related challenges which topped the 2022 survey fell to 22% in 2023.
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Additional Federal Funding Coming to Increase Broadband Access in Vermont
(February 26, 2023 – WCAX)
More than 200 towns are hooked up to broadband through a communications union district or CUD in Vermont, and more funding is on the way to spread access even farther. According to the federal government, Vermont is slated to receive a minimum of $100 million to help ensure high-speed internet coverage across the state.
Rob Fish with the Vermont Community Broadband Board says after the state uses its supply of ARPA funding, it will look to supplement with statewide grants and other federal dollars.
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Windsor VT Schools Receives Consolidated Communications Grant
(February 24, 2023 – VermontBiz)
Consolidated Communications, a VTTA member, announced $22,500 in grant funding to innovative programs at five schools through the Consolidated Connects Educational Grant Program. Among the recipients is the Windsor Central Supervisory Union, Windsor, VT, for enhancing literacy through technology with a student-centered podcast.
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VT tech company celebrates half decade of Best in KLAS
(February 23, 2023 – PCC)
Physician's Computer Company (PCC), a leading Electronic Health Records (EHR) vendor for independent pediatricians nationwide, announced that they have been designated as “Best in KLAS” in the 2023 KLAS: Software and Services Report in the Ambulatory Pediatric segment for their work in creating software specifically catered to independent pediatricians in the U.S. The award is the fifth consecutive VTTA member PCC has received since 2018, and the third in the “Ambulatory Specialty” category.
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ValleyNet Transfers Operating Responsibilities of ECFiber to GWI Vermont
(February 17, 2023 – GWI Vermont)
ValleyNet, a VTTA member, announced that it has transferred all its staff and operating responsibilities to GWI Vermont.
GWI, based out of Biddeford, Maine and founded in 1994, is a benefit corporation and was the nation’s first B Corporation Certified broadband carrier. ValleyNet is an Internet Service Provider (ISP) founded in Vermont as a non-profit in 1994 and has operated ECFiber since 2008. ECFiber created the blueprint for Vermont’s communication union districts (CUDs), which are now the centerpiece of the state’s strategy for solving the rural broadband crisis. GWI Vermont will continue to maintain and build upon the standards for this model with the transfer of operations.
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Maple Broadband Extends Service Area
(February 10, 2023 - VermontBiz)
Maple Broadband is bringing high speed future-proof fiber internet to Addison County. Maple Broadband is a Communications Union District (CUD) composed of 20 towns in Addison County. Service will be launching in portions of Cornwall, Salisbury, and a small corner of Middlebury.
In 2022, Maple Broadband’s focus was on securing funding and beginning construction on the foundation of their network. So far, 25.7 miles of fiber have been laid with plans for 100+ miles of fiber will be laid in 2023.
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Legislators Aim to Strengthen Vermonters’ Data Privacy
(February 10, 2023 – VTDigger)
Legislators are working to strengthen Vermont’s consumer privacy law.
A House bill would give Vermonters the option to request that their data not be tracked by data brokers, and would create a registry of Vermonters who do not allow their data to be tracked. It also would allow Vermonters to request deletion of any data that had already been collected.
The bill would protect biometric data, such as fingerprints, prohibiting businesses from collecting or retaining such data without a person’s consent. Businesses would not be able to pass along biometric data without a court order or warrant.
Andrew Kingman — testifying on behalf of the State Privacy & Security Coalition, an organization representing some 30 businesses that range from Google to Meta, Facebook and Instagram’s parent company — said the right for consumers to file private lawsuits has driven businesses out of Illinois and predicted it would drive businesses out of Vermont.
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Vermont Technology Alliance Membership Update
The Vermont Technology Alliance works on behalf of its members and is able to carry out its mission through the support of its membership.
New members include VTel, Stefanie Mills (Pouroverproductions), Drew Mills (Pouroverproductions) and Robyn Anderson (Immuware).
Renewing members include Physicians Computing Company (PCC) as a Leadership Member/Sponsor. We thank PCC for its long-term support for the VTTA at a Leadership level. Amazon renewed as a new Partner Member/Sponsor and Vermont Information Processing (VIP) also renewed as a new Partner Member/Sponsor. Renewing and continuing as a Partner Member/Sponsor is SymQuest. We appreciate the year-round foundational support for the VTTA from our annual Member/Sponsors
Other renewing members include Ecopixel, rbTechnologies, Red Leaf Software, Renaissance Information Systems, Union Street Media, Vermont HITEC, and individuals Tina de la Torre (Workshop), David Del Toro (consultant), William Gerns, Bernie Gracy (Monotype), Jeff Guyette (Greensea Systems), Andrea Kokolis (Kokolis Consulting), Sharon Trautwein (GWI Vermont), Stephen Waite (Care Management Solutions), and Tobin Winters (Vermont Mutual Insurance Group)
Not a VTTA member yet? Then why not join now? Find more information and register here. You can also contact us at admin@vtta.org.
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Featured Member – Bluehouse Group |
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Bluehouse Group is a full-service web design agency located in Burlington, Vermont. We build killer sites, complex apps, and concrete partnerships.
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Useful Information & Links |
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Section 174: Research & Experimental (R&E) Expenditures
As part of the 2017 Tax Cut and Jobs Act, starting in 2022 U.S. businesses are no longer allowed to fully deduct their R&D expenditures from their taxable income. Instead, they must deduct the expenses according to a 5-year depreciation schedule (and a 15-year schedule for R&D performed abroad).
This blog post by VTTA member Davis & Hodgdon Advisory Group describes the change and potential impact to businesses.
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Volunteers Sought for Champlain College Mock Interview Days: March 28-April 1, 2022
Champlain College’s Career Collaborative is recruiting volunteers to help prepare students for job interviews during its Spring 2022 Mock Interview Days, March 28-March 31. Interviews will be hosted virtually on Google Meet on Tuesday and Friday, and in person on Wednesday.
The time commitment can be as little as one hour or could expand to several hours over one or multiple dates. No subject matter expertise is required; however, some classes are making participation in Mock Interviews a required event or extra-credit option, and the intention is to pair these students with volunteers who have industry-relevant expertise.
Sign up here. Please only mark time(s) you can commit to.
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VMEC Releases 2022 Impact Report
The Vermont Manufacturing Extension Center (VMEC) , has released its annual impact report. As the only singularly-focused resource for manufacturers in Vermont, VMEC is the official representative of the MEP (Manufacturing Extension Partnership) National Network in the Green Mountain State.
Highlights of the FY 2022 annual report include:
- 443 jobs retained
- 930 total jobs created; this figure includes direct, indirect and induced jobs
- $69,600,000 employer wages & benefits for these jobs
- Over $9,000,000 in cost savings
- An average annual compensation of $64,000 for Vermont manufacturing employees, close to 9% more than the average Vermont compensation of $56,000
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Applications Open for Governors Institute of Vermont Programs
The Governor's Institutes of Vermont is a nonprofit that helps Vermont high schoolers pursue their passions. GIV offers 1- to 2-week programs in topics that include Arts, Engineering, Entrepreneurship, Environmental Science & Technology, Global Issues & Youth Action, Health & Medicine, Mathematical Sciences, and Technology & Design. These programs are designed to be affordable to all Vermont families with scholarships that allow students to pay as little as $10 to attend.
Find more information on their summer programs here.
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Online Professional Development Courses
The VTTA has partnered with MindEdge to offer easy-to-access, affordable, online professional development courses. Whether you are looking to expand your skill set, earn professional credits, or learn something new, these courses are an option to gain essential and in-demand skills on your own time, at your own pace, and from any location. As a bonus, VTTA members save 10% on all offerings.
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VTTA Career Center
Vermont Technology Alliance member companies are hiring, and when you visit the Career Center on the Vermont Technology Alliance website you can browse and search for these job openings and subscribe to updates. The Career Center on average features 300+ tech and non-tech jobs with Vermont Technology Alliance member businesses. Jobs available from VTTA members are listed at no charge in the Career Center as a member benefit.
Find the Career Center here.
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The VTTA Thanks Its Member/Sponsors
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