Committee reviews draft amendment to H.397, expands flood bill into all‑hazards response and outlines buyout reimbursement plan

Legislative counsel Tucker Anderson told the Government Operations & Military Affairs Committee that draft 1.4 of the committee's amendment to H.397 retools the bill from a flood‑specific package into an all‑hazards response framework and includes new programs, staffing and appropriations.

The amendment proposed that Vermont Emergency Management (VEM) incorporate specified provisions into 20 VSA section 41 so the statewide emergency management plan requires collaboration with the chief recovery officer, regional planning commissions, the Vermont League of Cities and Towns and long‑term recovery groups; establishes municipal outreach and notification provisions; and requires training and technical support for municipal staff.

Anderson cautioned that several provisions were highlighted in the draft because they "are provisions that I have not been able to fully vet for their legal soundness yet," and that he had attempted to conform language to the Vermont Statutes Annotated but some sections may need tightening as the committee moves the amendment forward.

A central policy change in the amendment is a streamlined voluntary buyout program for flood‑prone properties. Under the draft, the Division of Emergency Management and Community Development (ACCD referenced in the draft) would establish the buyout program, allowing municipalities, at the request of property owners, to apply for funding to purchase flood‑prone properties at full fair market value. The draft removes a prior requirement that acquired properties be permanently restricted to green space; Anderson flagged that later language in the draft assumes preservation but the covenant requirement is not present in the buyout section.

The amendment also creates a voluntary buyout reimbursement program in Title 32 (the draft references a new 32 VSA section 3710). That program would reimburse municipalities for the municipal property tax value associated with acquired properties. Eligible acquisitions must have occurred on or after July 1, 2023, under the draft; the Commissioner of Public Safety would certify eligible properties annually to the Commissioner of Taxes, and the Secretary of Administration would make annual payments to municipalities calculated by applying the municipal tax rate to the grand list value of the property for the year it was damaged or identified as flood‑prone.

Payments are specified to be made annually on or before January 1 for up to five years at the full calculated amount; if a municipality has received full payment for five consecutive years, the municipality would be eligible for an ensuing five‑year period at one‑half of the previously calculated annual payment. The draft locates payments in pilot special funds and a pilot bond referenced in the draft language; it directs that payments be subject to the pilot fund procedures in Chapter 123, Subchapter 4 and that if the pilot fund balance is insufficient payments to eligible municipalities or properties will be reduced proportionally.

The draft authorizes two positions embedded in VEM: a municipal grant liaison to coordinate grants and assist municipalities with FEMA and other funding, and an "all‑hazard mitigation technician" to provide engineering analysis and technical assistance across mitigation projects. Anderson noted the underlying bill had these positions dedicated to flood mitigation but the committee amendment expands their scope to "all hazards," and he recommended the committee consider whether the term "all hazards" and the associated duties are appropriately scoped.

The amendment would also direct the Division to assist municipal corporations, on request and in collaboration with regional planning commissions and VLCT, with access to flood monitoring devices that automatically trigger notification systems, with integration to a statewide enhanced weather alert system for real‑time warnings, and with other alert and training systems.

The bill text requires a needs assessment involving the Division, the chief recovery officer, the Agency of Commerce and Community Development (ACCD), the Agency of Natural Resources (ANR) and the Agency of Transportation; that written report would be delivered to the legislature's appropriations committees by November 15, 2025, under the draft.

Appropriations in the amendment include $275,000 to support the two new positions and $950,000 to support an urban search and rescue team under 20 VSA section 50. The draft also directs $1,000,000 in FY2026 from pilot special funds to the voluntary buyout reimbursement program, though Anderson said the phrasing may require technical cleanup because the pilot special fund is administered by the Secretary of Administration and the program administration is also assigned to that office in the draft.

Members discussed additional language the committee might include, such as provisions from H.307 relating to community radio stations and a requested change from the auditor's office to require at least an annual in‑person legislative update on plan action items rather than the current five‑year formal promulgation schedule. Eric Warren, identified in the meeting as "director of the monitoring management," explained the plan is promulgated every five years but updated annually and said he did not see an issue with an annual legislative briefing: "It gets promulgated once every 5 years, but it gets updated once a year," Warren said.

No formal motions or votes were recorded in the transcript provided. The committee agreed to hold deeper review and deliberation later in the week and to bring additional witnesses and fiscal staff for follow‑up discussion.

The draft amendment and highlighted sections remain subject to technical revision for statutory conformity and funding mechanics before any formal committee vote or floor action.