Committee advances S.122 (amendment 1.5) with funding language, task force limits and baby‑bonds pilot provisions

Rick Segal of the Office of Legislative Counsel reviewed draft 1.5 of S.122 for the House Committee on Commerce & Economic Development on May 22, explaining several changes made after the committee’s prior review.

Segal said the budget office recommended changing prior language that “appropriated” funds to phrasing that the money “shall be allocated,” to avoid potential double‑appropriation. The draft also modifies payments to a small business center so that the center would receive a grant (rather than a direct appropriation), and reduces one earlier allocation intended for a Vermont Sustainable Jobs program from $100,000 to $25,000 while narrowing the required deliverable to a printed guide unless additional funds are raised.

The draft renames an earlier reference to an internal agency, changing “International Trade Division” to “International Business Office” to match existing agency terminology in prior budgets, Segal said. The bill also sets a limit on task force meetings, stating the task force “shall not meet more than six times” and restricting reimbursement to a maximum of six meetings.

On the baby‑bonds provisions, draft 1.5 replaces unclear startup triggers with a clearer two‑part condition: the treasurer must submit a report summarizing the pilot program to the General Assembly and the General Assembly must appropriate funds sufficient to operate the pilot. The amendment also creates a special fund in the treasurer’s office to receive gifts, donations and grants from public or private sources to support the pilot; the draft does not include a direct appropriation in statute for ongoing funding of a permanent program.

Segal said sections related to the baby‑bonds pilot and the convention‑center task force were set to take effect on passage because the pilot and the task force require early authority. Appropriations and other fiscal sections were set to take effect on July 1, 2025. Committee staff asked members whether to include the Vermont Irish Trade Commission language in the same bill; after discussion the group agreed to include the language but to push the commission’s effective date to July 1, 2026 to allow the sister‑state study to conclude.

Committee members asked for clarifications about the $200,000 and $150,000 figures that had appeared in earlier drafts; Segal confirmed the language now reads as allocations and that the small business center payment will be made by grant. Members also confirmed that the Office of Legislative Counsel had coordinated with JFO (Joint Fiscal Office) staff on the wording.

After the explanation of edits and a short committee discussion, a motion to report S.122 (amendment 1.5) favorably passed on a roll call. Committee members noted several items would continue to require work in subsequent committees and on the floor, including finalizing the trade‑commission language and fiscal notes for the baby‑bonds pilot before final enactment.