House Commerce Committee signals concurrence with Senate amendments to H.398, clarifies disaster loan language

The Vermont House Committee on Commerce and Economics and Ethics reviewed Senate amendments to H.398 on April 24, and a straw poll showed the committee will likely concur with the changes when the measure returns for action.

Legislative counsel Cameron Wood told the committee the amendment makes several clarifying edits to the bill the House previously passed. He said the bill moves the Vermont sustainable job strategy into statute and creates a disaster revolving fund seeded with $2,000,000 from the Agency of Commerce and Community Development to provide funds for businesses or agricultural enterprises after disasters.

Wood said one technical change replaces the phrase "state projects" with "authority projects" (and a corresponding change from "state bonds" to "authority bonds") to reflect that the authority, not the State, would carry out those projects on the authority's behalf. He said the second change explicitly adds "forest products enterprises" to the list of businesses eligible for loans or other financial assistance from the disaster recovery loan fund.

"[T]he authority to provide loans and other forms of financial assistance to businesses, including agriculture and forest products enterprises after disasters," Wood said when describing the insertion of forest products into the eligibility language.

Wood also described an added consultation requirement for nond eclared disasters: the authority would consult with specified administration officials before making funds available following a nond eclared disaster, but no consultation would be required if the governor issues a declared disaster. "It still remains that there is no consultation required if there is a declared disaster," Wood said.

Committee members asked whether the departments had been consulted. A committee member reported that the secretary of commerce, the secretary of agriculture and the commissioner of Forests, Parks and Recreation "are all comfortable getting together in those times to make that decision," and Wood said his understanding was the change originated from the relevant administration departments and the Senate Finance Committee.

The committee took a nonbinding straw poll on whether to concur with the Senate amendment. The chair announced the tally as 10 yes, 0 no, 1 abstain. The chair said the concurrence will come up for a formal vote the following day and that the committee staff would transmit the committee's recommendation if members agree.

The amendment does not change the bill's grant of authority to declare disasters; rather, it clarifies the authority's ability to issue funds and the administrative consultation required when the disaster is nond eclared. The committee did not take testimony from the named administration officials during this briefing.

The committee's next formal action on H.398 is scheduled for the following legislative day.