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House advances omnibus bill updating emergency management, voluntary buyouts and municipal support after floods
Summary
H.397, a multi‑section bill addressing emergency management, municipal buyouts of flood‑prone properties, municipal reimbursement, mitigation planning, and other flood response measures, was amended on the floor after committee and Ways and Means/Appropriations changes; third reading was ordered.
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The Vermont House on March 26 advanced H.397, an omnibus package of changes to statutes governing emergency management and flood response that includes new duties for the Division of Emergency Management, a voluntary buyout program for flood‑prone properties, municipal reimbursement mechanisms, and a range of technical and programmatic changes.
Committee presenters described H.397 as continuation work following major flood events, hurricane Irene and more recent storms, and said the bill aims to strengthen mitigation, municipal assistance, and recovery. Key elements in the Government Operations and Military Affairs committee report included: adding duties for the Division of Emergency Management to provide annual presentations to oversight committees and to assist municipalities in implementing municipal assistance requirements; creation of a voluntary buyout program for flood‑prone properties with deed restrictions to maintain open space; a municipal grand list stabilization or voluntary buyout reimbursement program to reimburse municipalities for lost tax revenue after buyouts; assistance for municipalities to access surface water monitoring and alert systems; and authorization for the governor to waive permits and draw down dams where doing so would reduce impending flood damage.
The Ways and Means Committee proposed several amendments and renamed the reimbursement program the Municipal Grand List Stabilization Program, adjusted the formula for local options tax revenue sharing (proposed shifting the state share of local option tax revenues from 30% to 25%, increasing municipal share to 75%), and extended previously adopted flood abatement provisions to cover recent events. Ways and Means also revised effective dates so portions of the bill could operate retroactively to November 2024 as needed.
Appropriations stripped several appropriation lines from the bill, including funding for added positions, community radio grants, urban search and rescue, and fire apparatus, leaving those matters for the FY26 budget process. The Appropriations Committee also removed two specific position additions and several appropriations and indicated some items will be addressed in the budget.
On the floor Representative Byron (committee reporter) and Ways and Means and Appropriations reporters explained the amendments and fiscal changes. The bill as amended directs the Division of Emergency Management to develop municipal plans (e.g., wellness checks, emergency notification systems), creates a buyout mechanism and a reimbursement formula that would reimburse municipalities at 100% of lost municipal tax revenue for five years and 50% for the next five years, and requires a needs assessment report by November 15, 2025.
Committee witnesses included the director of Vermont Emergency Management, the Vermont League of Cities and Towns (VLCT), the Joint Fiscal Office, and other stakeholders. The House adopted Ways and Means and Appropriations amendments and ordered third reading after floor debate and a suite of floor amendments that clarified program names and scope.
Floor interrogation included questions about the role of the Agency of Human Services in municipal plans for vulnerable populations; committee members confirmed AHS had not been specifically consulted in drafting despite RPC concerns raised off session and said they would follow up.

