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60 MAIN STREET NEWS Lake ChampLain regionaL Chamber of CommerCe

JUNE 2016 ISSUE

FACEBOOK.COM/LCRCC @LCCHAMBER VIMEO.COM/LCRCC LAKE CHAMPLAIN REGIONAL VERMONT@VERMONT.ORG

CHAMBER OF COMMERCE

FEATURES PRESIDENT'S MESSAGE...............PAGE 2

UPCOMING EVENT.....................PAGE 3

LEGISLATIVE SUMMARY...........PAGE 4-6 FISCAL UPDATE INDEPENDENT CONTRACTORS ECONOMIC DEVELOPMENT EMPLOYMENT ISSUES DEC PERMIT REFORM PORTABLE WATER HEALTH CARE UPDATE TOURISM MARIJUANA LEGALIZATION EDUCATION PROPERTY TAXES

VCWA.....................PAGE 7

Thanks to all who helped make LaunchVT 2016 a huge success! After more than a month spent working closely with mentors and connecting with sponsors and community members, our competitors got to pitch to an audience of more than 150 individuals and four superstar judges.

Abbott Stark of Ogee took home first prize. Ogee is a glamorously green, luxury organic skincare line for women, founded by beauty and fashion industry experts with proven track records of success. The full line of products is based on jojoba seed oil, which has a molecular structure similar to that of the human skin. Stark, originally of Brandon, Vermont, focused his eight-minute pitch on the increasing consumer demand for organic products; on the dearth of organic products for luxury consumers; and on Ogee's highly-skilled, Vermont-based team. Stark, who is joined by his co-founders Mark Rice and Alex Stark, said the $30,000 prize money and the $45,000 of in-kind services will be critical in helping the startup get off the ground. The team was coached by James Macon, Co-Founder and Managing Partner at Closed Loop Capital.

The second place innovation award, funded by VT EPSCoR, went to Julie Lineberger, the founder of Wheel Pad. Wheel Pad provides eco-friendly temporary accessible housing for people newly using a wheelchair, allowing friends and/or family to provide support until permanent accessible housing can be arranged. The 200 square foot accessible bedroom and bathroom module can be temporarily attached to an existing home. Wheel Pad won a $15,000 cash prize and $25,000 of in-kind support. An architect who started her own firm in Wilmington, Vermont, Lineberger developed the idea for Wheel Pad after meeting and helping design a space for Riley Poor, a cinematographer who lives with tetraplegia as a result of an accident when he was twenty-five. The team was coached by Andrew Stickney, CEO of Burlington Bytes.

The other finalists were: Agewize: Andy Peters, Shelburne. Agewize is a cloud-based, mobile, social-care platform that focuses on creating circles of care and coordination around our loved ones. The platform makes it easy to onboard informal support (family/friend caregivers) and use a simple set of tools to record and organize information while keeping the care team informed real-time.

C O N N E C T W I T H Y O U R C H A M B E R O F C O M M E R C E w w w . v e r m o n t . o r gCONTINUED ON PAGE 3

AND THE WINNERS IS.... By KA T I E TA y L O R, @L A u N C H V T

LAuNCHVT 2016::

L A K E C H A M P L A I N R E G I O N A L C H A M B E R O F C O M M E R C E2

The Tourism Season is upon us. We have survived the winter that wasn’t and we have launched into a season full of festivals, events, music and the enjoyment of our lake, bike and walking trails and paths. There is no place in Vermont like

the greater Champlain region stretching from the top of Grand Isle County down through Addison. As has been noted by many, one only needs to cross the causeway into the islands to feel a noticeable drop in blood pressure and stress.

So, what’s on tap (that’s a hint) for those looking to enjoy our region. Nothing has grown faster and seen more national acclaim that our value-added food sector that includes craft beers, spirits and award winning cold climate wines. In fact, we recently linked our regional wineries with the Rue de Vin (wine trail) that crosses Quebec so that a traveling oenophile can have a two country experience. Our trail pairs nicely with the award winning cheese makers along the way. Beer and spirits companies need no introduction as they are featured in local, regional and national press.

For those thinking of more traditional Vermont pursuits, there are cruises of all types on Lake Champlain from brunches, to dinners to murder mystery events. Our Island Line bike path is one of the most requested attractions, close behind number the number one attraction --- that being the Ben and Jerrys Factory. For bikers seeking thrills, the mountain bike trails at our four season ski areas will challenge even the most competent riders. We also have miles upon miles of bike trails for those looking for a more leisurely wand up close way to see our towns and back roads.

As defining as Lake Champlain is on the western side of the region, Mount Mansfield. Mt. Philo and Camel’s Hump define our eastern boundaries. Day and overnight hikes for trekkers of all abilities are contained within the boundaries of these and other state parks and offer an excellent way to be in nature just a short ride from downtown Burlington.

As always, our streams, ponds and lakes offer fantastic fresh water fishing. Novices and experts alike come to the state to fish for trout, world-class bass fishing and to stalk the elusive Champ. The Vermont Department of Fish and Wildlife has all the information that you need to get a license and get started.

No trip to our region during the days of summer is complete without a trip to see our minor league professional baseball team, the Vermont Lake Monsters. Watching a game in the oldest operating stadium in the country, Centennial Field on the campus of UVM, is like walking back in time to the days when baseball ruled the land, where hot dogs, a soda and peanuts were considered a balanced meal, where families could enjoy being together at an event without needing a bank loan and when the stress of daily living had not become a national epidemic.

Finally, there is no shortage of places to stay. World class brand hotels, locally-owned boutique hotels, bed and breakfast get-a-ways; small and large resorts, all defined by dining that proudly offers locally sourced foods, await and meet a wide range of budget and personal preferences. All of these choices can be found on our website www.vermont.org.

Enjoy!

DAVID SEAVER PHOTOGRAPHYTOURISM SEASON BEGINS By TO M TO R T I , @TO MTO R T I

PRESIDENT’S MESSAGE::

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Solar Water Boiler: Ken Puzey, Essex Junction. Solar Water Boiler is a portable unit that provides a sustainable means for making safe drinking water and cooking. It also improves global health, improves air quality, slows deforestation, helps the poor by reducing cooking fuel costs, and allows corporations to meet their net zero carbon goals.

Thermouse: Matt Giles, New Haven, and Cullen Jemison, Starksboro. Thermouse (LaunchVT Collegiate Winner) provides a superior gaming experience by using the qualities of thermoplasticity to create a moldable computer-gaming mouse, reducing joint discomfort and fatigue.

Sap! Maple Water: Chas P. Smith, Burlington, and Nikita Salmon, Underhill. Sap! Maple Water products are non-alcoholic beverages made from 100% pure maple sap straight from the maple trees of Vermont. Maple sap soda and maple sap seltzer are healthy alternatives to sugar-sweetened beverages and taste delicious.

Hortlabs: Greg Kelly, Burlington; James Mix, Colchester; and Randy Rowland, Shelburne. Hortlabs is a new kind of plant recipe, management and analytics platform that helps fruit, vegetable and berry growers to improve efficiency, yield and profit. The cloud-based service provides growers the information, tools and control necessary to grow more successfully for their family, their community, or their customers.

All of our finalists put on an incredible showcase of the talent and innovation happening in Vermont.

The judges were Aaron Tyler, Managing Director, TriplePoint Capital; Janice Shade, Co-Founder, Milk Money; David Bradbury, President, Vermont Center for Emerging Technologies; and Patrick Cairns, General Partner, Union Grove Venture Partners. The event was hosted by Victoria Taylor, the Director of Digital Community at WeWork in New York City and host of the Vermont PBS web-series InnoVaTe.

uPCOMING EVENT::

24TH KEYBANK CHAMBER CHALLENGEThis year's golf event will bring together nearly 150 top Vermont business leaders from

both our public and private sectors to conduct business and to golf for one magnificent day. Sign up today to play with your favorite foursome and enjoy a beautiful day on the course. The cost is $750 per foursome or $200 for individual players. Your fee will include driving range, green fees, golf cart, lunch, VIP gifts and the awards dinner.

Don't play golf but want to be part of the festivities? Sponsorship opportunities are available to showcase your company's products or services to these top business leaders during the day. Have some fun and sponsor a hole or put your company name on the golf carts. The possibilities are endless. Sponsorship opportunities start at only $250.

This event will sell out, so don't wait till it's too late. Grab your favorite team and sign up at www.vermont.org/24thAnnualKeyBankChallenge.

Thank you to our sponsors:

If you are interested in purchasing a LaunchVT 2016 pint glass and didn’t get a chance to do so, please contact Katie@vermont.org.

LAuNCHVT CONTINuED FROM PAGE 1::

L A K E C H A M P L A I N R E G I O N A L C H A M B E R O F C O M M E R C E4

We take pleasure in our work representing you, our members, in Montpelier. Vermont's businesses are critically important to Vermont's future and prosperity - creating new jobs, paying good wages and investing in the skills of their workforce.

Since this is an election year, we urge you to take the time to meet with candidates running to represent you in Montpelier. Look for a survey on your priorities from us soon.

Here is a brief summary of our work on your behalf this session:

Fiscal Update:The State's fiscal year 2017 budget will be a 2.4% increase over the FY16. Legislators raised nearly $27 million in new or increased fees while the tax bill, raised $8.8 million partially from a two cent per gallon tax on home heating fuels. The tax bill does not include the hikes to the bank franchise tax or the Catamount employer assessment proposed in the House-passed tax bill. In addition to the almost $21 million raised by the increase to fees paid by mutual funds (a 150 to 233% increase), the fee bill also raises nearly $3.5 million in other securities fees.

The Legislature passed positive changes to Vermont's estate tax law which simplifies the estate tax calculation and puts in place a flat 16 percent tax rate. The current $2.75 million exclusion is maintained.

Independent Contractors:The House Commerce Committee worked on a new test to determine whether someone is an independent contractor. The test looked at whether the contractor was: • Be free from the direction and control • Control the means and manner of their work• Operates a separate and distinct business • Holds themselves out as in business • Offer their services to the general public • Are not treated as an employee for purposes of income or employment

We thought the test was simple and well-constructed and would allow an employer to determine if someone was indeed an independent contractor. Prior to the bill reaching the

LEGISLATIVE UPDATE : :

LEGISLATURE ADJOURNS

Board member Mike Plageman testifies in support of independent contractor legislation.

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House floor, labor unions expressed strong opposition to the language and the bill was sent back to the Committee. Following a procedural move which brought the bill to the House floor, it was sent to the House Ways and Means Committee where it remained for the rest of the session.

Economic Development:The Vermont Economic Growth Incentive (one of Vermont’s primary economic development tools) was re-authorized for another five years. Additionally, because paid sick leave will now be mandated, paid sick leave will no longer be considered as an offered benefit toward eligibility for the program. The first-time homebuyer down payment assistance program, strongly supported by the Chamber last year, was extended for seven years. For the 84 approximately $5,000 loans closed since the program's conception, the average of the homebuyers has been 31 years old with an average purchase price of $157,250.

Employment Issues:Governor Shumlin signed Paid Sick Leave into law on March 9th. We worked diligently to ensure that the new law allows employers flexibility in regard to their workforce and does not serve as a disincentive for creating new jobs. As of January 1, 2017, all employers will need to provide up to 24 hours of paid leave to each employee and employees will accrue one hour for every 52 hours worked. Employers may require a waiting period of up to one year before a newly-hired employee can use their accrued paid leave. Governor Shumlin signed the Ban the Box change into law on May 3rd. The measure requires that initial job applications not include questions about an applicant's criminal history. Employers may ask about an applicant's criminal history at an interview or once they have been deemed qualified for a position. The new law goes in to effect in July 2017.

DEC Permit Reform:The final version of S.123 attempts to create more meaningful public participation at the beginning of the permitting process, requiring that the Department and the applicant engage in a question-and-answer process at public meetings. The bill also includes a requirement that the appellant participate during the DEC permit process in order to file an appeal at the Environmental Court and that their later participation at the appeal level may only involve those issues on which they previously participated, a provision that provides some measure of confidence to developers that potential issues will be addressed early in the process. Any issues raised on appeal must have been raised with "sufficient particularity" to determine the specific issues of concern.

Potable Water:PFOA issues in southern Vermont created urgency among the Legislature to act. H. 595 provides expansive new authority for the Agency of Natural Resources in instances of hazardous releases or threats of hazardous releases. We expressed concerns about a significant expansion of ANR's authority and because Vermont businesses have been working cooperatively with ANR on PFOA issues, we recommended addressing the issue in a summer study committee. Though the Legislature voted to provide the authority rather than using a summer study committee, we were successful in tempering some of the language to provide greater fairness to businesses such as limiting the Agency's ability to request pre-litigation financial and business structure information to only those situations where a party has claimed an inability to pay, refused to perform, or failed to respond to Agency correspondence. The bill also limits the assessment of damages for injuries occurring wholly prior to the enactment of the bill, providing a six-year statute of limitations, and requiring a working group and report back to the Legislature prior to formal rule making.

Health Care Update:• The FY17 State Budget includes funding for a study of expanding Vermont's Dr. Dynasaur program (health insurance for

low and middle income children) to everyone aged 26 and under. • S.214 deletes from statute a section allowing businesses of all sizes to purchase insurance on the Vermont Health Connect

insurance exchange starting in 2018. Right now, businesses with fewer than 100 employees are pooled with individuals in the insurance exchange.

Joint hearing on DEC Permit Bill.

House Fish & Wildlife review the potable water bill.

Senate Finance Discusses VEGI.

L A K E C H A M P L A I N R E G I O N A L C H A M B E R O F C O M M E R C E6

Tourism Update: • The State's fiscal year 2017 funds the Vermont Department of Tourism and Marketing at just under $3.2 million. The

amount is about $20,000 less than what was recommended in the Governor's proposed budget.• The Miscellaneous Tax Bill directs the Department of Taxes to pursue negotiations to enter into a contract for the collection

and remittance of the rooms and meals tax with Internet platforms for the short-term lodging rentals (such as Airbnb) and report back to the Legislature on their progress.

• S.250 makes several changes to modernize and improve the state's policies on alcohol. It allows (on a trial basis) malt beverage manufacturers to transport product from one location to another; creates a destination resort master license that allows large resorts to designate caterers and avoid multiple license applications; makes changes to how the Commissioner is appointed; and requests a draft a re-write of liquor statute.

Marijuana Legalization: Though the Legislature spent months considering the issue, marijuana legalization did not move forward this year. In February, the Senate approved S.241, which legalized and regulated marijuana beginning in 2018. Speaker Shap Smith repeatedly stated that there was no appetite for legalization in the House, and the bill never came to the House Floor. However, when the Senate amended H.858, the miscellaneous criminal procedure bill, to include the text of S.241, the Speaker brought it up for a vote in the last week of the session. The bill was roundly defeated. Two additional amendments - to legalize the growing of two plants in the home and to include a nonbinding referendum on the ballot in November - were also unsuccessful.

Education Property Taxes:In March of this year, Legislators began considering how to use an approximately $20 million surplus in the State education fund. In the end, the House and Senate compromised by using the entire surplus, keeping the non-residential tax rate at $1.535, but lowering excess spending thresholds from 121% of 2014 spending to 121% of 2015 spending in 2018 and 119% in 2020. This reduction will increase the number of towns that hit the threshold, resulting in a penalty for each dollar spent over that amount.

Your thoughts and questions are always welcome. Please feel free to contact our Government Affairs Team via Clara@vermont.org.

LEGISLATIVE UPDATE CONTINUES : :

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Vermont Economic Development AuthorityFinancing for Vermont Businesses and Farms

“This is the most exciting time in our company’s history... Wide-ranging customer support for our products, as well as financial support from VEDA, has enabled our success. We look forwardto maintaining and continuing ourpartnership with VEDA.” - Ric Cabot Cabot Hosiery Mills, Inc.

www.veda.org 802-828-JOBS

The Vermont Council on World Affairs works to promote awareness and understanding of the world and its people, places, and cultures through education and engagement. One of the ways that we seek to engage Vermonters is through the International Visitor Leadership Program. The IVLP is a professional exchange program that allows leaders from other countries to meet and share information with their American counterparts with the goal of creating lasting relationships that transcend borders.

As a recent addition to the Vermont Council on World Affairs, I have been struck by the spirit of our international visitors. This was best demonstrated by a recent group, visiting the United States for a program entitled “Access for All: Enhancing the Lives of People with Disabilities.” Each of the participants in this program worked as an advocate for people living with disabilities in their communities. Many of the visitors themselves were living with visual and mobility limitations. What struck me most was how supportive and compassionate everyone was, always looking out for one another and taking responsibility for the needs of their fellow delegates. These people, from twenty different countries, couldn’t have been more different. Nevertheless, they were able to look beyond these superficial differences and connect with one another on a deeper level.

These groups have imparted a valuable lesson on me: that cultural exchanges are an invaluable tool in promoting understanding and tolerance between nations and their citizens. I continue to be inspired as I meet and interact with these visitors and I look forward to continuing my work with them. The VCWA is excited to welcome more visitors in the future, including “American Youth: Inspiring Leadership and Civic Engagement,” “Combating Human Trafficking,” and “Addressing the Needs of Underserved and At-Risk Youth.”

If you are interested in learning more about the International Visitor Leadership Program and discussing opportunities to engage with upcoming visitor groups, please contact Vinson Pierce, Manager of Global Engagement, at vinson@vermont.org.

By VI N S O N PI E R C E, @VCwA THE LASTING IMPACT OF CULTURAL EXCHANGES VERMONT COuNCIL ON wORLD AFFAIRS::

If you received duplicate copies or have an address/staff change, please email Nicole@vermont.org.

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UPCOMING EVENTS:JUNE 9TH: 24TH ANNUAL KEYBANK CHAMBER CHALLENGE GOLF TOURNAMENT

JUNE 17TH: RELAY FOR LIFE: LCRCC/BYP TEAM

DINSE / KNAPP / McANDREW

Tackling today’s tough legalchallenges for businesses, nonprofit

institutions and individuals.

www.dinse.com

STRATEGIC, RESULTS-DRIVEN AND THE RESOURCES TO MANAGE TODAY’S MOST COMPLEX CASES