Notable Bills That Did Not Pass
A number of significant proposals advanced or received substantial testimony but did not become law. These bills remain important because many addressed unresolved policy pressures — construction liability, insurance mandates, broadband affordability, early childhood workforce regulation, greenhouse gas reporting, data centers, and health insurance affordability — and several are likely to return in future sessions.
H.842 – School Employee Health Care Changes (Did Not Pass)
H.842 was the primary vehicle for proposals to slow the growth of school employee health benefit costs, though it did not become law. The bill would have phased in a cap on total benefit value, created a single statewide HRA/HSA administrator, broadened Commission membership, expanded arbitration criteria, and allowed arbitrators to issue modified or blended awards rather than choosing one side’s final offer. The Vermont School Boards Association (VSBA) framed the proposal as an effort to “bend the curve,” not reduce existing benefits.
Supporters pointed to rising health care costs, district-funded HRAs, administrative duplication, and projected savings of nearly $49 million once fully implemented. The debate reinforced a broader theme of the session: governance reforms alone are unlikely to resolve education affordability challenges without addressing major cost drivers such as employee health benefits. Although the bill did not advance, VSBA successfully elevated the issue throughout the session, including through a Senate floor amendment, and the proposal is likely to return in future years.
H.589 Statute of Repose (Did Not Pass)
H.589 would have established a six-year statute of repose for claims arising from improvements to real property, limiting the period during which architects, engineers, contractors, and other construction professionals could be sued for alleged design or construction defects. Supporters argued Vermont’s lack of a general construction statute of repose increased insurance costs and exposed the industry to indefinite liability long after projects were completed. Opponents raised concerns that the proposal could prevent property owners from pursuing claims involving latent defects that are not discovered until years after construction. The bill received extensive testimony but did not advance. Vermont remains one of the few states without a general construction statute of repose.
S.7 – Automobile Insurance Reform (Did Not Pass)
S.7 would have expanded access to uninsured and underinsured motorist (UI/UIM) coverage by prohibiting offsets for payments received from an at-fault driver’s liability policy and would have eliminated insurers’ MedPay subrogation rights. Insurers opposed the bill due to concerns about increased claim costs and premium impacts. The bill passed the Senate but was not taken up by the House.
H.525 – Auto Glass Coverage Mandate (Did Not Pass)
H.525 proposed requiring motor vehicle insurance policies with comprehensive coverage to provide windshield and motor vehicle glass replacement without a deductible, including coverage for associated vehicle safety system recalibration. Insurers raised concerns that the proposal would increase claims costs and ultimately result in higher premiums. The bill did not advance.
H.526 – Driver Safety Course Insurance Discounts (Did Not Pass)
H.526 would have required automobile insurers to provide premium discounts to policyholders who complete an approved driver safety course. Supporters argued the proposal would encourage safer driving habits, while insurers questioned whether a mandated discount would accurately reflect actuarial risk. The bill did not advance.
S.206 – Early Childhood Education Workforce Development (Did Not Pass)
S.206 proposed creating a new state licensure system for early childhood educators under the Office of Professional Regulation, including a Vermont Board of Early Childhood Educators and four license categories: Early Childhood Educator I, II, III, and Family Child Care Provider. The bill would have established licensure requirements based on education, training, experience, and continuing education standards for educators working in child care and preschool programs regulated by the Child Development Division, while exempting licensed public-school teachers and certain other programs. It also included transitional licensing pathways and recognition of prior learning and experience to help current educators meet the proposed requirements. The bill generated significant discussion within the early childhood community but did not advance to enactment during the 2026 session.
H.585 – Health Insurance Affordability and Market Reform (Did Not Pass)
The Administration’s health care affordability proposal stalled in Senate Finance. The bill would have implemented limited age rating, expanded access to alternative insurance products, modified Blue Cross governance requirements, advanced site-neutral payment reforms, and authorized pursuit of a federal reinsurance program. Reinsurance language was ultimately included in the budget.
S.154 – Biomarker Testing Coverage (Did Not Pass)
Originally proposed as a health insurance coverage mandate for biomarker testing, the bill was later reduced to a study of the costs and impacts of such a mandate. Despite funding for the study being included in the budget, the legislation did not advance before adjournment.
H.898 – Copper Network Retirement (Did Not Pass)
H.898 addressed the ongoing retirement of legacy copper telephone networks as providers transition to fiber and other technologies. The bill would have established customer notification requirements and regulatory oversight for the discontinuance of copper-based service. The measure passed the House but did not advance in the Senate. The transition away from copper infrastructure nevertheless continues across Vermont as telecommunications networks are modernized.
H.11 – Broadband Consumer Protection (Did Not Pass)
H.11 proposed state-level broadband consumer protections, including requirements related to service transparency, billing practices, service quality, and customer rights. Supporters argued the bill would provide safeguards similar to those previously addressed at the federal level, while opponents raised concerns about regulatory duplication and potential impacts on broadband investment. The bill did not advance.
H.121 – Broadband Affordability (Did Not Pass)
H.121 focused on broadband affordability and proposed requiring internet service providers to offer a low-cost broadband option for qualifying low-income households, generally at a rate of $15 per month. The bill was introduced following the expiration of the federal Affordable Connectivity Program (ACP) and reflected concerns about maintaining affordable internet access for vulnerable Vermonters. The proposal did not advance.
H.740 – Greenhouse Gas Emissions Reporting (Did Not Pass)
H.740 did not pass before adjournment. The bill would have authorized the Agency of Natural Resources to develop a greenhouse gas emissions reporting program covering major sources of emissions, including transportation and heating fuel suppliers. The program was intended to improve Vermont’s emissions inventory by collecting more detailed fuel sales data by sector and geographic area while protecting individual consumer identities. The bill also would have appropriated $300,000 to establish the reporting database and repealed the Clean Heat Standard. Although the measure advanced late in the session, it ran out of time and did not receive final passage.
S.213 – Smart Meters (Did Not Pass)
S.213 would have established a statewide right for water utility customers to opt out of smart meters (advanced metering infrastructure devices), while preserving the existing opt-out right for electric utility customers and allowing electric utilities to recover reasonable costs associated with providing and manually reading alternative meters through rates approved by the Public Utility Commission. The bill passed the Senate and was extensively considered by the House Energy and Digital Infrastructure Committee but did not reach final passage before adjournment.
H.753 – Utility Disconnect Protections (Did Not Pass)
H.753 would have codified existing utility disconnection protections during periods of extreme heat and expanded provisions related to medical documentation used to prevent service disconnections. Although the bill passed the House, Senate Finance ultimately concluded that its objectives could largely be addressed through the Public Utility Commission’s existing authority and regulatory processes, and the bill stalled in the Senate before final passage.
H.727 – Data Centers (Did Not Pass)
Legislation establishing a regulatory framework for large AI-driven data centers, including cost-allocation, energy planning, and environmental review requirements, passed the Legislature but was vetoed by Governor Scott; an override attempt failed.
