Journal of the Senate ________________ SATURDAY, JUNE 4, 2005 The Senate was called to order by the President. Devotional Exercises A moment of silence was observed in lieu of devotions. Senate Concurrent Resolutions The following joint concurrent resolutions, having been placed on the consent calendar on the preceding legislative day, and no Senator having requested floor consideration as provided by the Joint Rules of the Senate and House of Representatives, are hereby adopted on the part of the Senate: By Senators Doyle, Cummings and Scott, By Representative Brooks and others, S.C.R. 40. Senate concurrent resolution extending best wishes to former Representative Curt McCormack and Nicole Dewing as they embark on a new path as Peace Corps volunteers in Senegal. By Senators Doyle, Cummings and Scott, By Representative Brooks and others S.C.R. 41. Senate concurrent resolution congratulating Woodbury College on its 30th anniversary. [The full text of the Senate concurrent resolutions appeared in the Senate calendar addendum for Thursday, June 2, 2005, and, if adopted in concurrence by the House, will appear in the volume of the Public Acts and Resolves to be published for this session of the sixty-eighth biennial session of the Vermont General Assembly.] House Concurrent Resolutions The following joint concurrent resolutions having been placed on the consent calendar on the preceding legislative day, and no Senator having requested floor consideration as provided by the Joint Rules of the Senate and House of Representatives, are hereby adopted in concurrence: 1326 Printed on 100% Recycled Paper SATURDAY, JUNE 4, 2005 1327 By Representative Livingston and others, By Senators Sears and Shepard, H.C.R. 153. House concurrent resolution congratulating Burr and Burton Academy on its 175th anniversary. By Representative Brooks and others, By Senators Cummings, Doyle and Scott, H.C.R. 154. House concurrent resolution congratulating Linda Wheatley and Suvannee Promchan for their roles in the Montpelier High School students’ 2005 excursion to Thailand. By Representative Ancel, H.C.R. 155. House concurrent resolution congratulating the 2005 Project Citizen winners from Twinfield Union School. By Representatives Leriche and others, H.C.R. 156. House concurrent resolution congratulating Betty Hatch on being named the 2005 Martha H. O’Connor Friend of Education. By Representatives French and others, By Senator MacDonald, H.C.R. 157. House concurrent resolution congratulating Abigail Swan on her designation as the 2005 Vermont State Boys & Girls Clubs Youth of the Year. By Representatives Emmons and others, H.C.R. 158. House concurrent resolution congratulating Cathy Howland of Springfield on her receipt of commendations as a registered nurse. By Representatives Nease and others, H.C.R. 159. House concurrent resolution congratulating the 2004 Lamoille Union High School Lancers Division II championship girls’ soccer team. 1328 JOURNAL OF THE SENATE By Representative Orr, H.C.R. 160. House concurrent resolution honoring former Representative Hazel Prindle of Charlotte for her decades of outstanding civic and community service. By Representatives Nease and others, By Senator Bartlett, H.C.R. 161. House concurrent resolution commemorating the history of the town of Sterling. By Representatives Orr and others, H.C.R. 162. House concurrent resolution honoring Stacie Lee Blake for her work on behalf of refugees and immigrants in Vermont. By Representatives Botzow and others, By Senators Dunne, Snelling, Ayer, Bartlett, Campbell, Collins, Condos, Coppenrath, Cummings, Doyle, Flanagan, Gander, Giard, Illuzzi, Kitchel, Kittell, Leddy, Lyons, MacDonald, Maynard, Mazza, Miller, Mullin, Scott, Sears, Shepard, Starr, Welch, White and Wilton, H.C.R. 163. House concurrent resolution congratulating the Vermont Arts Council on its 40th anniversary. By Representatives Lorber, H.C.R. 164. House concurrent resolution congratulating the Catalyst Theatre Company’s Thumbs Up! Showcase on its tenth anniversary gala. By Representatives Obuchowski and others, H.C.R. 165. House concurrent resolution in memory of the American military personnel who have died in service of their nation in Iraq since January 5, 2005. SATURDAY, JUNE 4, 2005 1329 By Representatives Hosford and others, H.C.R. 166. House concurrent resolution congratulating the Harwood Union High School student producers of the video documentary “Common Ground: The Stories of Waterbury to Warren”. By Representatives Obuchowski and others, H.C.R. 167. House concurrent resolution congratulating Sonnax Industries Inc. of Bellows Falls on its designation as the Vermont International Business Council’s Exporter of the Year. By Representatives Valliere and others, By Senators Cummings, Doyle and Scott, H.C.R. 168. House concurrent resolution in memory of Allison Hansen, Joshua Nutbrown, and Justin Nutbrown. By Representatives Marcotte and others, H.C.R. 169. House concurrent resolution commemorating the 100th anniversary of the establishment of the Daughters of the Charity of the Sacred Heart of Jesus religious order in the United States. By Representative Donahue and others, H.C.R. 170. House concurrent resolution congratulating Walter Weaver of Northfield on winning the grades 3 - 5 division of the secretary of state’s 2005 poster contest. By Representatives Perry and others, By Senators Ayer, Collins, Condos, Leddy, Mazza and Miller, H.C.R. 171. House concurrent resolution commemorating the dedication of the Robert T. Stafford United States Navy Memorial on Lake Champlain By Representatives French and others, By Senator MacDonald, 1330 JOURNAL OF THE SENATE H.C.R. 172. House concurrent resolution congratulating Tomomi Shimabukuro on her designation as the 2005 Capital Division’s girl basketball player of the year. By Representative Smith, H.C.R. 173. House concurrent resolution recognizing Debora Price’s outstanding educational leadership as principal of the Beeman Elementary School in New Haven. By Representative Hube, H.C.R. 174. House concurrent resolution congratulating the town of Jamaica on its 225th anniversary. [The full text of the House concurrent resolutions appeared in the Senate calendar addendum for Thursday, June 2, 2005, and will appear in the volume of the Public Acts and Resolves to be published for this session of the sixtyeighth biennial session of the Vermont General Assembly.] Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Rules Suspended; Bill Messaged S. 66. Appearing on the Calendar for notice, on motion of Senator Mazza, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to the welfare of animals. Was taken up for immediate consideration. Senator Campbell, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 66. An act relating to the welfare of animals. Respectfully reports that it has met and considered the same and recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: SATURDAY, JUNE 4, 2005 1331 Sec. 1. STUDY COMMITTEE OF THE PET MERCHANT INDUSTRY (a) A committee is established to study the sale, exchange, and donation of animals by merchants in the state of Vermont under chapters 194 and 199 of Title 20. The committee shall determine the best approach to long-term regulation of the sale, exchange, and donation of animals by pet merchants in the state of Vermont. The committee shall study: (1) Administration of the licensing or registration of pet merchants, including whether Vermont should follow the regulatory framework utilized in New Hampshire or other states; (2) Enforcement of any licensing or registration of pet merchants and any prohibition on the unlicensed sale, exchange, or donation of animals, including whether to require proof of licensing prior to advertising the sale, exchange, or donation of animals; (3) Funding available for the enforcement of pet merchant licensing or registration requirements; and (4) Delegation of some or all enforcement duties to humane societies, sheriff’s departments, or other local or municipal entities. (b) The committee shall consist of the following members: (1) The secretary of agriculture, food and markets or his or her designee; (2) A member of the senate to be appointed by the committee on committees; (3) A member of the house of representatives to be appointed by the speaker of the house; (4) The commissioner of taxes or his or her designee; (5) A member of the Vermont humane federation appointed by the federation; (6) A member of the Vermont sheriffs’ association appointed by the association; (7) A veterinarian from the Vermont veterinary medical association appointed by the association; (8) A member of the Vermont cruelty task force appointed by the task force; (9) A member of the Vermont animal control association to be appointed by the association; 1332 JOURNAL OF THE SENATE (10) A representative of the Vermont federation of dog clubs to be appointed by the federation; and (11) A registered pet merchant appointed by the secretary of agriculture, food and markets. (c) The committee shall be co-chaired by the member of the senate and the member of the house of representatives appointed to the committee. The legislative council shall provide professional and administrative support for the committee. The committee may hold public hearings and shall solicit comment or testimony from interested parties, including: (1) The commissioner of fish and wildlife or his or her designee; (2) The secretary of state or his or her designee; (3) The Vermont League of Cities and Towns; (4) The Vermont Federation of Sportsmen’s Clubs; (5) The American Kennel Club; (6) Rabbit breeder associations; (7) Animal rescue organizations in Vermont; and (8) Pet breeders working from their homes. (d) All members of the committee shall serve for the duration of the study unless circumstances dictate a permanent replacement. Vacancies shall be appointed in the same manner as original appointments. (e) The committee shall report its recommendations in the form of proposed legislation by January 15, 2006 to the house committees on agriculture, judiciary, and government operations; and the senate committees on agriculture, economic development, housing and general affairs, judiciary, and government operations. The report shall include recommendations by the committee for the regulation of the pet merchant industry in Vermont. CLAIRE D. AYER JOHN F. CAMPBELL VINCENT ILLUZZI Committee on the part of the Senate SARA COPELAND-HANZAS MITZI JOHNSON Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. SATURDAY, JUNE 4, 2005 1333 Thereupon, on motion of Senator Mazza, the rules were suspended, and the bill was ordered messaged to the Governor forthwith. Rules Suspended; Report of Committee of Conference; Consideration Postponed S. 80. Appearing on the Calendar for notice, on motion of Senator Mazza, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to increasing the minimum wage. Was taken up for immediate consideration. Senator Miller, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 80. An act relating to increasing the minimum wage. Respectfully reports that it has met and considered the same and recommends that the House recede from its proposal of amendment and that the bill be amended by striking all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 21 V.S.A. § 384(a) is amended to read: (a) An employer shall not employ an employee at a rate less than $6.25 an hour, beginning on January 1, 2004 at a rate less than $6.75 an hour, and beginning on January 1, 2005 at a rate less than $7.00 an hour and, beginning January 1, 2006, at a rate less than $7.25, and, beginning January 1, 2007, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous September 1, whichever is smaller. The minimum wage shall be rounded off to the nearest $0.01. An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee beginning on January 1, 2004 at a basic wage rate less than $3.58 an hour, beginning on January 1, 2005 at a basic wage rate less than $3.65 an hour and thereafter at a rate to be determined when the minimum wage is increased. For the purposes of this subsection, “a service or tipped employee” means all 1334 JOURNAL OF THE SENATE those, in either hotels, motels, tourist places, and restaurants an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $30.00 per month in tips for direct and personal customer service. If the minimum wage rate established by the United States government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the United States government. MARK A. MACDONALD VINCENT ILLUZZI HINDA MILLER Committee on the part of the Senate FRANCIS K. BROOKS HELEN HEAD RICHARD J. HOWRIGAN Committee on the part of the House Thereupon, pending the question, Shall the Senate accept and adopt the report of the Committee of Conference?, on motion of Senator Campbell consideration of the Committee of Conference was postponed. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Rules Suspended; Bill Messaged S 159. Appearing on the Calendar for notice, on motion of Senator Mazza, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to updating and clarifying education law. Was taken up for immediate consideration. Senator Collins, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 159. An act relating to updating and clarifying education law. Respectfully reports that it has met and considered the same and recommends that the Senate accede to the House proposal of amendment and that the bill be further amended as follows: SATURDAY, JUNE 4, 2005 1335 First: By striking out Sec. 16 in its entirety and inserting in lieu thereof a new Sec. 16 to read as follows: Sec. 16. 16 V.S.A. § 4011(a) and (c) are amended to read: (a) Annually, the general assembly shall appropriate funds to pay for an adjusted education payment for each equalized pupil statewide education spending and a portion of a base education payment for each adult diploma student and student or client in the adult education and literacy program. (c) Annually, each school district shall receive an adjusted education spending payment for support of education costs. Funds distributed under this section shall be allocated on the basis of the equalized pupils in each school district, except for unorganized towns and gores. An unorganized town or gore shall receive an amount equal to its adjusted education payment for that year for each student based on the weighted average daily membership count which shall not be equalized. If the district’s adjusted education payment is less than the base education payment, then in fiscal years 2005 and 2006 only, the district shall receive its education spending per equalized pupil plus 40 percent of the excess of the base education payment over the district’s adjusted education payment, but only for deposit in a district’s education reserve fund, authorized in accord with section 2804 of Title 24, for expenditure on legitimate items of education expense. In fiscal years 2007 and after, no district shall receive more than its education spending amount. Second: At the end of the bill by adding two new sections to be numbered Sec. 19 and 20 to read as follows: Sec. 19. TRANSITION TO FULL IMPLEMENTATION OF ACT 130; FUNDING OF UNION AND UNIFIED UNION SCHOOL DISTRICTS (a) In this section, “municipality” has the same meaning as in 32 V.S.A. § 5401(9). (b) In fiscal year 2007, union and unified school districts shall not receive funds under 16 V.S.A. § 4011(c) and shall divide the amount that would otherwise be received under that section in the proportion which the union district’s equalized pupil count from the associated municipality bears to the total number of the union district’s equalized pupil count for that year. The board of directors of a union district shall present an estimate of the amount to be divided at an annual meeting. Following a vote to adopt the budget, the board of directors shall compute the share of each member district or associated municipality and give notice of the amount to the legislative branch of the member district or municipality. Upon receipt by the member district or municipality of the notice of the share in the union or unified district expenses, the share shall become a legal obligation of the member district or municipality 1336 JOURNAL OF THE SENATE without need for further vote of the member district or municipality electorate. Notwithstanding 16 V.S.A. § 706j(a)(8), in fiscal year 2007, a union school district board of directors may borrow money pending receipt of payments from the member districts or associated municipality by the issuance of its notes or orders payable not later than one year from date. (c) In fiscal year 2007, education spending as defined in 16 V.S.A. § 4001(6) shall include any assessment for a union school. (d) Notwithstanding the provisions of 32 V.S.A. § 5402(a)(2) and (3), for fiscal year 2007, the homestead property tax rate for a municipality which is a member of a union or unified union school district shall not be calculated as required under subsection 5402(e) of Title 32. Sec. 20. LAKE CHAMPLAIN REGIONAL TECHNICAL CENTER SCHOOL DISTRICT; TRANSFER OF FUNDS (a) Reallocation. Notwithstanding any provision of law to the contrary, all capital appropriations made in prior legislative sessions to the department of buildings and general services for use by the Lake Champlain Chamber of Commerce, the Chittenden Workforce Investment Board, or the Lake Champlain Regional Technical Center School District (“LCRTCSD”) that remain in any LCRTCSD account shall be transferred to the department of buildings and general services on or before July 15, 2005. Of the amount transferred, the department shall disburse the sum of $10,000.00 to the Chittenden South Supervisory Union Board as fiscal agent for the purpose of providing consulting services to the steering committee created in subsection (b) of this section. (b) Steering committee. There is created a steering committee to develop a vision for providing technical education in the Chittenden County service region and to determine if a new planning committee should be created under the provisions of 16 V.S.A. § 1572. The steering committee shall consist of the following members: the superintendent of schools for the Chittenden South Supervisory Union who shall serve as chair, a member of the Burlington board of school commissioners to be selected by that board, a member of the Essex Union # 46 High School Board to be selected by that board, a high school principal from the service area selected by the commissioner of education in consultation with the principals in the technical center service region, one member selected by the Chittenden Workforce Investment Board, one member selected by the Franklin-Grand Isle Workforce Investment Board, and two teachers chosen by the commissioner of education, one from the Burlington Technical Center and one from the Center for Technology – Essex. The director of the Burlington Technical Center and the director of the Center SATURDAY, JUNE 4, 2005 1337 for Technology – Essex shall serve as nonvoting members of the steering committee. (c) Access to records and information. The LCRTCSD shall ensure that all of its records and information relating to its work are made available to the steering committee and comply with all requirements relating to the disposition of public records. (d) Recommendations. On or before November 30, 2005, the steering committee shall provide specific recommendations for implementing its vision, including the process for creating a new planning committee under the provisions of 16 V.S.A. § 1572, if necessary, to the school boards and superintendents for each of the high schools in the region. It shall submit copies of the recommendations to the house and senate committees on education and on institutions, the commissioners of education and of buildings and general services, the Franklin-Grand Isle Workforce Investment Board, and the Chittenden Workforce Investment Board. (e) Oversight. The commissioner of education shall monitor the steering committee’s work and shall approve all expenditures of the sums reallocated to the committee in subsection (a) of this section. DONALD E. COLLINS JAMES C. CONDOS WENDY L. WILTON Committee on the part of the Senate GEORGE CROSS DENISE BARNARD KATHY LAVOIE Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Mazza, the rules were suspended, and the bill was ordered messaged to the Governor forthwith. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Rules Suspended; Bill Messaged S. 171. Appearing on the Calendar for notice, on motion of Senator Mazza, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: 1338 JOURNAL OF THE SENATE An act relating to agricultural water quality. Was taken up for immediate consideration. Senator Kittell, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 171. An act relating to agricultural water quality. Respectfully reports that it has met and considered the same and recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 6 V.S.A. § 4810 is amended to read: § 4810. AUTHORITY; COOPERATION; COORDINATION (a) Agricultural land use practices. In accordance with 10 V.S.A. § 1259(i), the secretary shall adopt by rule, pursuant to chapter 25 of Title 3, and shall implement and enforce agricultural land use practices in order to reduce the amount of agricultural pollutants entering the waters of the state. These agricultural land use practices shall be created in two categories, pursuant to subdivisions (1) and (2) of this subsection. (1) “Accepted Agricultural Practices” (AAPs) shall be standards to be followed in conducting agricultural activities in this state. These standards shall address activities which have a potential for causing pollutants to enter the groundwater and waters of this the state, including dairy and other livestock operations plus all forms of crop and nursery operations. The AAPs shall include, as well as promote and encourage, practices for farmers in preventing pollutants from entering the groundwater and waters of the state when engaged in, but not limited to, animal waste management and disposal, soil amendment applications, plant fertilization, and pest and weed control. Persons engaged in farming, as defined in section 6001 of Title 10, who follow these practices shall be presumed to be in compliance with water quality standards. AAPs shall be practical and cost effective to implement. The AAPs for groundwater shall include a process under which the agency shall receive, investigate, and respond to a complaint that a farm has contaminated the drinking water or groundwater of a property owner. *** (b) Cooperation and coordination. The secretary of agriculture, food and markets shall coordinate with the secretary of natural resources in SATURDAY, JUNE 4, 2005 1339 implementing and enforcing programs, plans and practices developed for reducing and eliminating agricultural non-point source pollutants and discharges from concentrated animal feeding operations. The secretary of agriculture, food and markets and the secretary of natural resources shall develop a memorandum of understanding for the non-point program describing program administration, grant negotiation, grant sharing and how they will coordinate watershed planning activities to comply with Public Law 92-500. The secretary of agriculture, food and markets and the secretary of the agency of natural resources shall also develop a memorandum of understanding according to the public notice and comment process of subsection 1259(i) of Title 10 regarding the implementation of the federal concentrated animal feeding operation program and the relationship between the requirements of the federal program and the state agricultural water quality requirements for large, medium, and small farms under chapter 215 of this title. The memorandum of understanding shall describe program administration, permit issuance, an appellate process, and enforcement authority and implementation. The memorandum of understanding shall be consistent with the federal National Pollutant Discharge Elimination System permit regulations for discharges from concentrated animal feeding operations. The allocation of duties under this chapter between the secretary of agriculture, food and markets and the secretary of natural resources shall be consistent with the secretary’s duties, established under the provisions of section subsection 1258(b) of Title 10, to comply with Public Law 92-500. The secretary of natural resources shall be the state lead person in applying for federal funds under Public Law 92-500, but shall consult with the secretary of agriculture, food and markets during the process. The agricultural non-point source program may compete with other programs for competitive watershed projects funded from federal funds. The secretary of agriculture, food and markets shall be represented in reviewing these projects for funding. Actions by the secretary of agriculture, food and markets under this chapter concerning agricultural non-point source pollution shall be consistent with the water quality standards and water pollution control requirements of chapter 47 of Title 10 and the federal Clean Water Act as amended. Sec. 2. 6 V.S.A. § 4812 is amended to read: § 4812. CORRECTIVE ACTIONS (a) When the secretary of agriculture, food and markets determines that a person engaged in farming is managing a farm using practices which are inconsistent with practices defined by rules under this chapter subchapter, the secretary may issue a written warning which shall be served in person or by certified mail, return receipt requested. The warning shall include a brief 1340 JOURNAL OF THE SENATE description of the alleged violation, identification of this statute and applicable rules, a recommendation for corrective actions that may be taken by the person, along with a summary of federal and state assistance programs which may be utilized by the person to remedy the violation and a request for an abatement schedule from the person according to which the practice shall be altered. The person shall have 30 days to respond to the written warning. If the person fails to respond to the written warning within this period or to take corrective action to change the practices in order to protect water quality, the secretary may act pursuant to subsection (b) of this section in order to protect water quality. (b) After an opportunity for a hearing, the secretary may issue cease and desist orders and institute appropriate proceedings on behalf of the agency to enforce this chapter subchapter. (c) Whenever the secretary believes that any person engaged in farming is in violation of this chapter subchapter, an action may be brought in the name of the agency in a court of competent jurisdiction to restrain by temporary or permanent injunction the continuation or repetition of the violation. The court may issue temporary or permanent injunctions, and other relief as may be necessary and appropriate to curtail any violations. (c)(d) The secretary may assess administrative penalties in accordance with sections 15, 16, and 17 of this title against any farmer who violates a cease and desist order or other order issued under subsection (b) of this section. (d)(e) Any person subject to an enforcement order or an administrative penalty who is aggrieved by the final decision of the secretary may appeal to the superior court within 30 days of the decision. The environmental judge shall be a specially assigned superior court judge The administrative judge may specially assign an environmental judge to superior court for the purpose of hearing an appeal. Sec. 3. 6 V.S.A. § 4813(b) is amended to read: (b) Any person engaged in farming that has been required by the secretary of agriculture, food and markets to implement best management practices or any person who has petitioned the secretary of agriculture, food and markets under subsection (a) of this section may appeal the secretary of agriculture, food and market’s decision to the water resources board environmental court de novo. Sec. 4. 6 V.S.A. § 4815 is added to read: § 4815. WASTE STORAGE FACILITY SATURDAY, JUNE 4, 2005 1341 (a) No person shall construct a new waste storage facility or expand or modify a waste storage facility in existence on July 1, 2006 unless the facility meets the standard established for such facilities by the Natural Resources Conservation Service of the U.S. Department of Agriculture or an equivalent standard. If an equivalent design standard is used, the design and construction shall be certified by the secretary of agriculture, food and markets or a licensed professional engineer operating within the scope of his or her expertise. (b) The secretary may require the owner or operator of a waste storage facility in existence on July 1, 2006, to modify the facility to meet the standard set forth in subsection (a) of this section if the facility poses a threat to human health or environment as established by a violation of the state groundwater protection standards. If the secretary determines that a facility that meets the standard set forth in subsection (a) of this section poses a threat to human health or the environment, the secretary may require the owner or operator of the facility to implement additional management measures. The costs of initial groundwater monitoring conducted to determine if a facility poses a threat to human health or the environment shall be paid by the secretary. Within 21 days of a determination under this subsection that a facility poses a threat to human health or the environment, the secretary of agriculture, food and markets shall notify the department of health and the secretary of natural resources of the location of the facility and the name of its owner or operator. (c) For purposes of this section, “waste storage facility” means an impoundment made for the purpose of storing agricultural waste by constructing an embankment, excavating a pit or dugout, fabricating an inground or above-ground structure, or any combination thereof. This section does not apply to concrete slabs used for agricultural waste management. Sec. 5. 6 V.S.A. § 4826 is added to read: § 4826. COST ASSISTANCE FOR WASTE STORAGE FACILITIES (a) The owner or operator of a farm required under section 4815 of this title to design, construct, or modify a waste storage facility may apply in writing to the secretary of agriculture, food and markets for cost assistance. Using state or federal funds or both, a state assistance grant shall be awarded, subject to the availability of funds, to applicants. Such grants shall not exceed 85 percent of the cost of an adequately sized and designed waste storage facility and the equipment eligible for Natural Resources Conservation Service cost share assistance. Application for a state assistance grant shall be made in the manner prescribed by the secretary. For purposes of this section, “waste storage facility” means an impoundment made for the purpose of storing agricultural waste by constructing an embankment, excavating a pit or dugout, fabricating 1342 JOURNAL OF THE SENATE an in-ground or above-ground structure, or any combination thereof. This section does not apply to concrete slabs used for agricultural waste management. (b) If the secretary lacks adequate funds necessary for the cost assistance awards required by subsection (a) of this section, the secretary shall appear before the emergency board, as soon as possible, and shall request that necessary funds be provided. If the emergency board fails to provide adequate funds, the design and construction requirements for waste storage facilities under subsection 4815(b) of this title and the AAPs for groundwater, as they relate to a waste storage facility, shall be suspended for a farm with a waste storage facility subject to the requirements of subsection 4815(b) of this title until adequate funding becomes available. Suspension of the design and construction requirements of subsection 4815(b) of this title does not relieve an owner or operator of a farm permitted under section 4858 of this title from the remaining requirements of the owner’s or operator’s permit, including discharge standards, groundwater protection, nutrient management planning, and land application of manure. This subsection does not apply to farms permitted under section 1263 of Title 10 or farms permitted under section 4851 of this title. Sec. 6. 6 V.S.A. § 4827 is added to read: § 4827. NUTRIENT MANAGEMENT PLANNING; INCENTIVE GRANTS (a) A farm developing or implementing a nutrient management plan under chapter 215 of this title or federal regulations may apply to the secretary of agriculture, food and markets for financial assistance. The financial assistance shall be in the form of incentive grants. Annually, after consultation with the U.S. Department of Agriculture Natural Resources Conservation Service, natural resources conservation districts, the University of Vermont extension service and others, the secretary shall determine the average cost of developing and implementing a nutrient management plan in Vermont. The dollar amount of an incentive grant awarded under this section shall be equal to the average cost of developing a nutrient management plan as determined by the secretary or the cost of complying with the nutrient management planning requirements of chapter 215 of this title or federal regulations, whichever is less. (b) Application for a state assistance grant shall be made in a manner prescribed by the secretary and shall include, at a minimum: (1) an estimated cost of developing and implementing a nutrient management plan for the applicant; (2) the amount of incentive grant requested; and SATURDAY, JUNE 4, 2005 1343 (3) a schedule for development and implementation of the nutrient management plan. (c) The secretary annually shall prepare a list of farms ranked, regardless of size, in priority order that have applied for an incentive grant under this section. The priority list shall be established according to factors that the secretary determines are relevant to protect the quality of waters of the state, including: (1) the proximity of a farm to a water listed as impaired for agricultural runoff, pathogens, phosphorus, or sediment by the agency of natural resources; (2) the proximity of a farm to an unimpaired water of the state; (3) the proximity of a drinking water well to land where a farm applies manure; and (4) the risk of discharge to waters of the state from the land application of manure by a farm. (d) Assistance in accordance with this section shall be provided from state funds appropriated to the agency of agriculture, food and markets for integrated crop management. (e) If the secretary lacks adequate funds necessary for the financial assistance required by subsection (a) of this section, the requirement to develop and implement a nutrient management plan under state statute or state regulation shall be suspended until adequate funding becomes available. Suspension of a state-required nutrient management plan does not relieve an owner or operator of a farm permitted under section 4858 of this title of the remaining requirements of a state permit, including discharge standards, groundwater protection, and land application of manure. This subsection does not apply to farms permitted under section 1263 of Title 10 or farms permitted under section 4851 of this title. (f) The secretary may contract with natural resources conservation districts, the University of Vermont extension service, and other persons and organizations to aid in the implementation of the incentive grants program under subsection (a) of this section and to assist farmers in the development and implementation of nutrient management plans. Sec. 7. 6 V.S.A. § 4850 is amended to read: § 4850. DEFINITIONS For purposes of this subchapter: 1344 JOURNAL OF THE SENATE (1) “Animal unit” means 1,000 pounds of live body weight of livestock. Animal units are calculated by adding the following numbers: the number of slaughter and feeder cattle multiplied by 1.0, plus the number of mature dairy cattle multiplied by 1.4, plus the number of swine weighing over 25 kilograms multiplied by 0.4, plus the number of sheep multiplied by 0.1, plus the number of horses multiplied by 2.0, for any large farm operation. (2)(1) “Domestic fowl” means laying-hens, broilers, ducks, and turkeys. (3)(2) “Livestock” means cattle, swine, sheep, or horses. Sec. 8. 6 V.S.A. § 4851 is amended to read: § 4851. PERMIT REQUIREMENTS FOR LARGE FARM OPERATIONS (a) No person shall, without a permit from the secretary, construct a new barn, or expand an existing barn, designed to house more than 700 mature dairy animals, 1,000 cattle or cow/calf pairs, 1,000 veal calves, 2,500 swine weighing over 55 pounds, 10,000 swine weighing less than 55 pounds, 500 horses, 10,000 sheep or lambs, 55,000 turkeys, 30,000 laying hens or broilers with a liquid manure handling system, 82,000 laying hens without a liquid manure handling system, 125,000 chickens other than laying hens without a liquid manure handling system, 5,000 ducks with a liquid manure handling system, or 30,000 ducks without a liquid manure handling system. No permit shall be required to replace an existing barn in use for livestock or domestic fowl production at its existing capacity. The secretary of agriculture, food and markets, in consultation with the secretary of natural resources, shall review any application for a permit under this section with regard to water quality impacts and, prior to approval of a permit under this subsection, shall issue a written determination regarding whether the applicant has established that there will be no unpermitted discharge to waters of the state pursuant to the federal regulations for concentrated animal feeding operations. If upon review of an application for a permit under this subsection, the secretary of agriculture, food and markets determines that the permit applicant may be discharging to waters of the state, the secretary of agriculture, food and markets and the secretary of natural resources shall respond to the discharge in accordance with the memorandum of understanding regarding concentrated animal feeding operations under subsection 4810(b) of this title. The secretary of natural resources may require a large farm to obtain a permit under section 1263 of Title 10 pursuant to federal regulations for concentrated animal feeding operations. *** (d) A person seeking a permit under this section shall apply in writing to the secretary. The application shall include a description of the proposed barn SATURDAY, JUNE 4, 2005 1345 or expansion of animal units livestock or domestic fowl; a proposed nutrient management plan to accommodate the number of livestock or domestic fowl the barn is designed to house or expand to; and a description of the manure management system to be used to accommodate agricultural wastes. *** 1346 JOURNAL OF THE SENATE Sec. 9. 6 V.S.A. § 4852 is amended to read: § 4852. RULES The secretary may adopt rules pursuant to chapter 25 of Title 3 concerning program administration, program enforcement, appeals and standards for waste management and waste storage, setbacks or siting criteria for new construction or expansion, groundwater contamination, odor, noise, traffic, insects, flies, and other pests in order to implement this subchapter. In no case shall the rules be stricter than the federal regulations when adjusted where appropriate to 95 percent of the federal threshold governing concentrated animal feeding operations, as set forth in the EPA Guide Manual on NPDES Regulations and in EPA Document 833-B-95-001 of December, 1995. The siting criteria adopted by the secretary by rule shall be consistent with the standards for the quality of state waters and standards for acceptable agricultural practices pursuant to subchapter 2 of this chapter. The groundwater contamination rules adopted by the secretary shall include a process under which the agency shall receive, investigate, and respond to a complaint that a farm has contaminated the drinking water or groundwater of a property owner. Sec. 10. 6 V.S.A. § 4853 is amended to read: § 4853. INFORMATIONAL MEETING (a) Upon receipt by the secretary of a permit application for construction of a new barn under this subchapter, the secretary shall establish an advisory group to assist in reviewing the application. The advisory group shall consist of, in addition to the secretary, the secretary of natural resources or his or her duly authorized representative, a farmer appointed by the governor, and a representative of the legislative body of the municipality in which the proposed facility would be located. Such representative shall be appointed by the legislative body but need not be a resident of the municipality. The secretary may establish the advisory group pursuant to this subsection upon receipt of a permit application for expansion of an existing barn under this subchapter. (b) The secretary shall conduct an informational meeting in a municipality when there is a proposal to construct a new barn, within the municipality, that would require a permit under this subchapter. (b)(c) The secretary may conduct an informational meeting in a municipality in which a barn expansion is sought, if the barn is already subject to permitting requirements under this subchapter. (c)(d) The secretary shall upon request prepare in writing the response of the agency to matters raised during a meeting held pursuant to this section, or submitted to the secretary in writing. Such response shall pertain to considerations required under this subchapter. SATURDAY, JUNE 4, 2005 1347 Sec. 11. 6 V.S.A. § 4858 is amended to read: § 4858. ANIMAL WASTE PERMITS *** (b) Rules; general and individual permits. The secretary shall establish by rule, pursuant to chapter 25 of Title 3, requirements for a “general permit” and “individual permit” to ensure that medium and small farms generating animal waste comply with the water quality standards of the state. (1) “General” and “individual” permits issued under this section shall be consistent with rules adopted under this section, shall include terms and conditions appropriate to each farm size category and each farm animal type as defined by section 4857 of this title and shall meet standards at least as stringent as those established by the U.S. Environmental Protection Agency for concentrated animal feeding operations, as set forth in USEPA National Pollutant Discharge Elimination System Permit Regulation and Effluent Limitation Guidelines and Standards for Concentrated Animal Feeding Operations; Final Rule, 68 Fed. Reg. 7176 (2004)(to be codified at 40 C.F.R. Parts 9, 122, 123, 68, and 412) federal regulations for concentrated animal feeding operations. Such standards shall address waste management, waste storage, development of nutrient management plans, carcass disposal, and surface water and groundwater contamination, plus recordkeeping and, reporting regarding such matters, and monitoring provisions regarding such matters to ensure that the terms and conditions of the permit are being met. The groundwater contamination rules adopted by the secretary under this section shall include a process under which the agency shall receive, investigate, and respond to a complaint that a farm has contaminated the drinking water or groundwater of a property owner. *** (c)(1) Medium farm general permit. The owner or operator of a medium farm seeking coverage under a general permit adopted pursuant to this section shall certify to the secretary within a period specified in the permit, and in a manner specified by the secretary, that the medium farm does comply with permit requirements regarding an adequately sized and designed manure management system to accommodate the wastes generated and a nutrient management plan to dispose of wastes in accordance with accepted agricultural practices adopted under this chapter. Any certification or notice of intent to comply submitted under this subdivision shall be kept on file at the agency of agriculture, food and markets. The secretary of agriculture, food and markets, in consultation with the secretary of natural resources, shall review any certification or notice of intent to comply submitted under this subdivision 1348 JOURNAL OF THE SENATE with regard to the water quality impacts of the medium farm for which the owner or operator is seeking coverage, and, within 18 months of receiving the certification or notice of intent to comply, shall verify whether the owner or operator of the medium farm has established that there will be no unpermitted discharge to waters of the state pursuant to the federal regulations for concentrated animal feeding operations. If upon review of a medium farm granted coverage under the general permit adopted pursuant to this subsection, the secretary of agriculture, food and markets determines that the permit applicant may be discharging to waters of the state, the secretary of agriculture, food and markets and the secretary of natural resources shall respond to the discharge in accordance with the memorandum of understanding regarding concentrated animal feeding operations under subsection 4810(b) of this title. (2) The owner or operator of a small farm may seek coverage under the medium farm general permit adopted pursuant to this section by certifying to the secretary, in a manner specified by the secretary, that the small farm complies with the requirements and conditions of the medium farm general permit. (d) Medium and small farms; individual permit. Upon determination by the secretary that a medium or small farm may be a significant contributor of pollutants to the waters of the state, the secretary may require the farm to obtain an individual permit in order to continue in operation The secretary may require the owner or operator of a small or medium farm to obtain an individual permit to operate after review of the farm’s history of compliance, application of accepted agricultural practices, the use of an experimental or alternative technology or method to meet a state performance standard, or other factors set forth by rule. The owner or operator of a small farm may apply to the secretary for an individual permit to operate under this section. To receive such a an individual permit, an applicant shall in a manner prescribed by rule demonstrate that the farm has an adequately sized and designed manure management system to accommodate the wastes generated and a nutrient management plan to dispose of wastes in accordance with accepted agricultural practices adopted under this chapter, including setback requirements for waste application. An individual permit shall be valid for no more than five years. Any application for an individual permit filed under this subsection shall be kept on file at the agency of agriculture, food and markets. The secretary of agriculture, food and markets, in consultation with the agency of natural resources, shall review any application for a permit under this subsection and, prior to issuance of an individual permit under this subsection, shall issue a written determination regarding whether the permit applicant has established that there will be no unpermitted discharge to waters of the state pursuant to federal regulations for concentrated animal feeding operations. If, upon review SATURDAY, JUNE 4, 2005 1349 of an application for a permit under this subsection, the secretary of agriculture, food and markets determines that the permit applicant may be discharging to waters of the state, the secretary of agriculture, food and markets and the secretary of natural resources shall respond to the discharge in accordance with the memorandum of understanding regarding concentrated animal feeding operations under subsection 4810(b) of this title. The secretary of natural resources may require a medium or small farm to obtain a permit under section 1263 of Title 10 pursuant to federal regulations for concentrated animal feeding operations. Coverage of a medium farm under a general permit adopted pursuant to this section or an individual permit issued to a medium or small farm under this section is rendered void by the issuance of a permit to a farm under section 1263 of Title 10. * * * Agency of Natural Resources * * * Sec. 12. 10 V.S.A. § 1259(f) is amended to read: (f) The provisions of subsections (c), (d), and (e) of this section shall not regulate accepted agricultural or silvicultural practices, as such are defined by the secretary of agriculture, food and markets and the commissioner of forests, parks and recreation, respectively, after an opportunity for a public hearing; nor shall these provisions regulate discharges from concentrated animal feeding operations that require a permit under section 1263 of this title; nor shall those provisions prohibit stormwater runoff or the discharge of nonpolluting wastes, as defined by the board. Sec. 13. 10 V.S.A. § 1263(g) is added to read: (g) Notwithstanding any other provision of law, any person who owns or operates a concentrated animal feeding operation that requires a permit under the federal National Pollutant Discharge Elimination System permit regulations shall submit an application to the secretary for a discharge permit and pay the required fees specified in 3 V.S.A. § 2822. On or before July 1, 2007, the secretary of natural resources shall adopt rules implementing the federal National Pollutant Discharge Elimination System permit regulations for discharges from concentrated animal feeding operations. Until such regulations are adopted, the substantive permitting standards and criteria used by the secretary to evaluate applications and issue or deny discharge permits for concentrated animal feeding operations shall be those specified by federal regulations. The secretary may issue an individual or general permit for these types of discharges in accordance with the procedural requirements of subsection (b) of this section and other state law. For the purposes of this subsection, “concentrated animal feeding operation” means a farm that meets the definition contained in the federal regulations. 1350 JOURNAL OF THE SENATE Sec. 14. 10 V.S.A. § 1264(e)(2) is amended to read: (2) As one of the principal means of administering an enhanced stormwater program, the secretary may issue and enforce general permits. To the extent appropriate, such permits shall include the use of certifications of compliance by licensed professional engineers practicing within the scope of their engineering specialty. The secretary may issue general permits for classes of regulated stormwater runoff permittees and may specify the period of time for which the permit is valid other than that specified in subdivision 1263(d)(4) of this title when such is consistent with the provisions of this section. General permits shall be adopted and administered in accordance with the provisions of subsection 1263(b) of this title. No permit is required under this section for: (A) stormwater Stormwater runoff from farms subject to accepted agricultural practices adopted by the secretary of agriculture, food and markets; (B) Stormwater runoff from concentrated animal feeding operations that require a permit under subsection 1263(g) of this chapter; or (C) for stormwater Stormwater runoff from silvicultural activities subject to accepted management practices adopted by the commissioner of forests, parks and recreation. Sec. 15. AGENCY OF AGRICULTURE WATER QUALITY OUTREACH, EDUCATION, AND TRAINING (a) Prior to February 2006, the agency of agriculture, food and markets shall develop educational and training programs and conduct public hearings to inform farmers in Vermont of the requirements of this act, the proposed general permit for medium farm operations, and the federal regulations for concentrated animal feeding operations. In developing the education programs required by this section, the agency may utilize various types of media, group meetings, on-farm demonstrations, and one-on-one farm visits. (b) The agency of agriculture, food and markets, in consultation with the agency of natural resources, shall coordinate the training of staff from the natural resources conservation districts, the University of Vermont extension service, the Natural Resources Conservation Service, and other persons and organizations regarding the requirements of the state animal waste permit program and what may constitute a discharge from a concentrated animal feeding operation. SATURDAY, JUNE 4, 2005 1351 Sec. 16. ANNUAL REPORT (a) On January 1 of each year, the agency of natural resources shall submit an annual report to the house and senate committees on agriculture, the house committee on fish, wildlife and water resources, and the senate committee on natural resources and energy regarding implementation by the agency of a National Pollutant Discharge Elimination System (NPDES) permit program for farms subject to the federal Clean Water Act regulations for concentrated animal feeding operations (CAFOs). The report shall include: (1) a summary of the status of the federal regulations; (2) a summary of the litigation challenging the federal regulations; (3) a summary of any revised rulemaking by the U.S. Environmental Protection Agency; (4) a recommendation by the agency of natural resources regarding the rules regulating discharges from concentrated animal feeding operations; (5) a copy of the memorandum of understanding for concentrated animal feeding operations required by section 4810 of Title 6 and a recommendation by the agency of natural resources regarding any need to amend the memorandum of understanding; (6) an assessment of the impact on surface water quality of the implementation of agricultural water quality programs in the state; and (7) a summary of the impact on small farms of the implementation of the NPDES permit program, including the number of small farms required to obtain an NPDES permit. (b) On January 1 of each year, the agency of agriculture, food and markets shall submit an annual report to the house and senate committees on agriculture, the house committee on fish, wildlife and water resources, and the senate committee on natural resources and energy concerning the status of the state animal waste permit program. The report shall include: (1) an assessment of the adequacy of agricultural waste storage and land application of manure on farms in Vermont; (2) an assessment of the extent of the financial and technical resources required to implement successfully the state agricultural water quality program, including the number of nutrient management plans required, the number of waste storage facilities that require upgrading, and an estimate of the appropriations necessary to fund state assistance programs; (3) the status of rulemaking for the medium farm general permit; 1352 JOURNAL OF THE SENATE (4) the status of any pending or proposed rulemaking for large farms or accepted agricultural practices; (5) a summary of the year-to-date funding of the nutrient management planning by the agency of agriculture, food and markets; (6) a summary of agency efforts to develop educational programs and conduct public hearings to inform farmers in Vermont of the requirements of this act, the proposed general permit for medium farm operations, and the status of the federal regulations for concentrated animal feeding operations; (7) an assessment of the impact of the state agricultural water quality program on small farms in Vermont, including the number of small farms voluntarily entering the program and the number of small farms required to obtain a state animal waste permit; (8) a summary of the financial and technical assistance provided to farms, including the type and amount of assistance awarded according to farm size; and (9) an assessment of the impact on the groundwater of the state of the implementation of the state agricultural water quality program. Sec. 17. SUNSET Sec. 16 of this act (annual report) shall be repealed on January 2, 2010. Sec. 18. EFFECTIVE DATE This act shall take effect on passage. SARA BRANON KITTELL VIRGINIA V. LYONS ROBERT A. STARR Committee on the part of the Senate DAVID DEEN MITZI JOHNSON HARVEY SMITH Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Mazza, the rules were suspended, and the bill was ordered messaged to the Governor forthwith. SATURDAY, JUNE 4, 2005 1353 Rules Suspended; House Proposal of Amendment Concurred In J.R.S. 36. Appearing on the Calendar for notice, on motion of Senator Mazza, the rules were suspended and House proposal of amendment to joint Senate resolution entitled: Joint resolution relative to federal policy concerning MTBE. Was taken up for immediate consideration. The House proposes to the Senate to amend the resolution by striking out all after the title and inserting in lieu thereof the following: Whereas, methyl tertiary butyl ether (MTBE) is a chemical additive that since 1979 has been used as an octane booster in crude oil based motor vehicle fuel, and Whereas, Public Law 101-549 (the Clean Air Amendments of 1990) established a fuel oxygen standard that resulted in more significant use of MTBE as a motor vehicle fuel oxygenate, and Whereas, because this chemical is extremely soluble in water, when MTBE leaks from storage tanks, it does not bind readily to soil and therefore can contaminate either groundwater or drinking water at a rapid pace, and Whereas, the U.S. Congress has determined that use of MTBE as an oxygenate for air quality purposes should be terminated by a date certain, and Whereas, nevertheless, Congress has failed to set a timely, or even a firm, termination date, but rather has provided in Sec. 1504 of the House-passed version of H.R. 6, the National Energy Policy Act of 2005, that national use of MTBE can continue potentially until December 31, 2014, and Whereas, although section 1504 of H.R.6 does not restrict a state from limiting or prohibiting the use of MTBE in motor fuels within its geographic boundaries, the use of MTBE in states that do not adopt their own bans is allowed until 2014 and that is unacceptable, and Whereas, section 1502 of H.R.6 creates a fuels safe harbor provision under which MTBE or fuel containing MTBE is not a defective product for purposes of a defective product claim unless it violates a control prohibition imposed by the U.S. Environmental Protection Agency under Clean Air Act § 211, and Whereas, the Congressional Budget Office anticipates that precluding existing and future MTBE claims would reduce the size of judgments in favor of state and local governments over the next five years, resulting in a cost shift from MTBE producers and big oil companies to the states and local 1354 JOURNAL OF THE SENATE governments in the form of unfunded mandates which the taxpayers will ultimately pay, and Whereas, in 2003, 14 state attorneys general, including the Attorney General of Vermont, expressed their opposition to the enactment of a safe harbor provision relative to MTBE, such as in section 1502 of H.R.6, and Whereas, increased reliance on ethanol as a motor fuel replacement for increasingly expensive crude oil and its dangerous MTBE additive has gained new supporters and Whereas, this new support is based on ethanol’s declining price, the availability of storage facilities capable of handling ethanol, and the impact ethanol could have on reducing the threat to ground water quality even if serving as a blend with traditional crude oil, and Whereas, despite these factors, ethanol is still not a major component of motor vehicle fuel sold in the United States, now therefore be it Resolved by the Senate and House of Representatives: That the General Assembly urges Congress to reject both sections 1502 and 1504 of H.R.6 as currently proposed, and to examine closely the potential for the use of ethanol as an alternative to either MTBE or crude oil, and be it further Resolved: That the Secretary of State be directed to send a copy of this resolution to the members of the Vermont Congressional delegation. Thereupon, the question, Shall the Senate concur in the House proposal of amendment?, was decided in the affirmative. Recess On motion of Senator Campbell the Senate recessed until the fall of the gavel. Called to Order At 1:55 P.M. the Senate was called to order by the President. Message from the House No. 87 A message was received from the House of Representatives by Mr. MaGill, its First Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate the House: Pursuant to the request of the Senate for a Committee of Conference upon the disagreeing votes of the two Houses on Senate bill of the following title: SATURDAY, JUNE 4, 2005 1355 S. 56. An act relating to restructuring the Agency of Natural Resources. The Speaker has appointed as members of such committee on the part of the House Rep. Masland of Thetford Rep. Krawczyk of Bennington Rep. McCullough of Williston Message from the House No. 88 A message was received from the House of Representatives by Mr. MaGill, its First Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate the House has considered Senate proposal of amendment to House bill of the following title: H. 545. An act authorizing to Vermont Yankee to go before the public service board to seek permission for dry cask storage. And has concurred therein. The House has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses on House bills of the following titles: H. 163. An act relating to criminal abuse, neglect, and exploitation of vulnerable adults. H. 523. An act relating to the state’s transportation program. And has adopted the same on its part. The House has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses on Senate bills of the following titles: S. 15. An act relating to voyeurism. S. 56. An act relating to restructuring the Agency of Natural Resources. And has adopted the same on its part. 1356 JOURNAL OF THE SENATE Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged H. 130. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on House bill entitled: An act relating to executive branch fees. Was taken up for immediate consideration. Senator Cummings, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon House bill entitled: H. 130. An act relating to executive branch fees. Respectfully reports that it has met and considered the same and recommends that the House accede to the Senate’s first and second proposals of amendment, and that the Senate recede from its third proposal of amendment, and that the bill be further amended as follows: First: By adding eleven new sections to be numbered Secs. 18 - 28 to read as follows: Sec. 18. 20 V.S.A. § 1815 is amended to read: § 1815. AVAILABILITY PHOTOSTATIC COPIES OF PHOTOGRAPHIC PRINTS OR (a) Photographic prints taken by the department of public safety or photostatic copies of investigation reports or other material on file relating to motor vehicle accidents or fires, may be furnished to any interested person. (1) Photographic prints related to accidents or fire investigations shall be $5.00 $8.00 per print, and discs shall be $20.00 per disc. (2) The commissioner of public safety is authorized to collect fees sufficient to recover the costs associated with the processing of photographic films for criminal justice agencies. Such costs include the cost of materials, labor and machine time related to the processing of films by the department. (3) Copies of fire investigation reports shall be $15.00 $20.00 per report. If the reports contain audiotape or videotape, the fee for each audiotape or videotape shall be $15.00 $20.00. SATURDAY, JUNE 4, 2005 1357 (4) Investigation reports unrelated to fires or motor vehicle accidents may be furnished at the discretion of the commissioner when in his or her opinion the release of such material would not be detrimental to the best interests of the department. The fee for such reports shall be $15.00 $20.00. If the reports contain audiotape or videotape, the fee for each audiotape or videotape shall be $15.00 $20.00. (5) Officers' reports of motor vehicle accidents which do not require a report to the commissioner of motor vehicles pursuant to 23 V.S.A. § 1129 may be sold for $10.00 $20.00 per report. (b) Fees collected under this section shall be credited to the sale of photos and reports special fund and shall be available to the department to offset the cost of providing the services. (c) If a photostatic report furnished under this section exceeds 20 pages, the additional pages shall cost $0.05 per page and $0.33 per minute for staff time in excess of 30 minutes. * * * Agency of Agriculture, Food and Markets * * * Sec. 19. 6 V.S.A. § 324(b) is amended to read: (b) No person shall distribute in this state a commercial feed which that has not been registered pursuant to the provisions of this chapter. Application shall be in a form and manner to be prescribed by rule of the secretary. The application for registration of a commercial feed shall be accompanied by a registration fee of $50.00 $70.00 per product. The registration fees, along with any surcharges collected under subsection (c) of this section, shall be deposited in the special fund created by subsection 364(e) of this title. Funds deposited in this account shall be restricted to implementing and administering the provisions of this chapter title and any other provisions of the law relating to fertilizer, lime, or seeds. If the secretary so requests, the application for registration shall be accompanied by a label or other printed matter describing the product. Sec. 20. 6 V.S.A. § 364(e) is amended to read: (e) The registration and tonnage fees, along with any deficiency penalties collected pursuant to sections 331 and 372 of this title, shall be deposited in a special fund. Funds deposited in this fund shall be restricted to implementing and administering the provisions of this chapter title and any other provisions of law relating to feeds and seeds. Sec. 21. 6 V.S.A. § 918(b) is amended to read: 1358 JOURNAL OF THE SENATE (b) The registrant shall pay an annual fee of $75.00 $92.00 for each product registered which, and that amount shall be deposited in the special fund created in section 929 of this title, of which $5.00 from each product registration shall be used for an educational program related to the proper purchase, application, and disposal of household pesticides, and $5.00 from each product registration shall be used to collect and dispose of obsolete and unwanted pesticides. The annual registration year shall be from December 1 to November 30 of the following year. Sec. 22. 6 V.S.A. § 929(a) is amended to read: (a) There is hereby created a special pesticide monitoring revolving fund. Monies collected pursuant to section subsection 918(b) of this title shall be deposited in the fund. The secretary may use monies deposited in the fund for the following purposes: (1) for For the purpose of monitoring pesticides, conducting pesticide educational activities, researching alternatives to the use of pesticides for pest control, and implementing pesticide reduction strategies pursuant to the provisions of 6 V.S.A. § 1110;. (2) to To pay salaries of full and part-time employees involved in monitoring pesticides;. (3) to To purchase necessary pesticide monitoring and analytical equipment;. (4) to To defray the cost of necessary operating expenses;. *** (7) To implement and administer the provisions of this title and any other provisions of law relating to pesticides. * * * Victim Compensation Fund * * * Sec. 23. 13 V.S.A. § 7282(a) is amended to read: (a) In addition to any penalty or fine imposed by the court or judicial bureau for a criminal offense or any civil penalty imposed for a traffic violation, including any violation of a fish and wildlife statute or regulation, violation of a motor vehicle statute, or violation of any local ordinance relating to the operation of a motor vehicle, except violations relating to seat belts and child restraints and ordinances relating to parking violations, the clerk of the court or judicial bureau shall levy an additional fee of: *** (6) For any offense committed after June 30, 2003: SATURDAY, JUNE 4, 2005 1359 (A) For any offense or violation committed after June 30, 2003, but before July 1, 2005, $21.00, of which $13.75 shall be deposited into a special fund account to be known as the victims’ compensation special fund, and $2.25 shall be deposited into the criminal justice training council special fund established in section 2363 of Title 20; and. (7) For any offense or violation committed after June 30, 2005, $22.00, of which $14.75 shall be deposited into the victims’ compensation special fund and $2.25 shall be deposited into the criminal justice training council special fund established in section 2363 of Title 20. (B)(8) For any offense or violation committed after June 30, 2003, an amount equal to 15 percent of the fine imposed for the offense, rounded upward to the nearest whole dollar, which shall be deposited into the crime victims’ restitution special fund established by section 5363 of this title. * * * Department of Environmental Conservation * * * Sec. 24. LEGISLATIVE INTENT It is the intent of the general assembly that aquatic nuisance control stickers issued by the secretary of natural resources in accordance with this act be marketed as a voluntary program for those who wish to increase public awareness of the state’s interest in controlling aquatic nuisances, and that the stickers not be in any way sold as, or implied to be, required or mandatory. Sec. 25. 10 V.S.A. § 924 is added to read: § 924. AQUATIC NUISANCE CONTROL STICKER PROGRAM; AQUATIC NUISANCE CONTROL SPECIAL FUND CREATION (a) The department of environmental conservation may develop an aquatic nuisance control sticker for voluntary mounting on motorboats, personal watercraft, paddlecraft, or other vehicles or areas of display. The department, as part of any program developed under this section, shall select a graphic design or designs for the sticker that will enhance the public awareness of the state’s interest in controlling aquatic nuisance species. (b) The commissioner of environmental conservation shall have the authority to sell and distribute the stickers. The charge for an individual aquatic nuisance control sticker sold by any person shall be $10.00. The department is authorized to sell stickers at a cost of $9.00 per sticker if sold for resale. The department of environmental conservation shall use monies collected under this section and any gifts, grants, or contributions received by the department for the purpose of aquatic nuisance control to implement the programs authorized by this section and sections 921, 922, and 923 of this title. 1360 JOURNAL OF THE SENATE (c) The aquatic nuisance control special fund is established in the state treasury pursuant to subchapter 5 of chapter 7 of Title 32. The fund shall be administered by the department of environmental conservation to implement programs authorized by this section and sections 921, 922, and 923 of this title. The fund shall consist of gifts, donations, fees collected by the department for aquatic nuisance stickers, and appropriations by the general assembly. Sec. 26. REPORT TO THE GENERAL ASSEMBLY The department of environmental conservation shall provide an accounting of the revenue raised by the aquatic nuisance sticker program established under 10 V.S.A. § 924 every three years at the time the agency of natural resources is required to report all fees to the general assembly pursuant to 32 V.S.A. § 605. * * * Executive Branch Fee Study * * * Sec. 27. EXECUTIVE BRANCH FEE STUDY The department of finance and management, in consultation with the legislative council and the joint fiscal office, shall study the process under which executive branch agencies of the state submit proposed fees to the General Assembly for review as required under 32 V.S.A. § 605 and shall recommend whether this process should be amended to more accurately specify the justification for a proposed fee. The study shall review and evaluate agency compliance with the requirements of 32 V.S.A. § 605 to describe the services or product provided for the fee and the regulatory function performed. The study shall include a specific emphasis on whether agencies sufficiently justify the proposed fee or proposed change in fee and reasonably relate the fee or change in the fee to the cost to the agency of the service provided. The study shall also include an evaluation of whether additional justification provided by agencies for a proposed fee, such as a comparison to similar governmental or non-governmental charges in Vermont or in other states, is necessary and should be included in submission of proposed fees to the General Assembly. For purposes of this study, the “cost to the agency” may include reasonable and directly related costs of administration, maintenance, and other expenses incurred in providing a service or product or performing a regulatory function. The recommendations of the department shall include proposed legislation. The study and the recommendations shall be reported to the house committee on ways and means and the senate committee on finance by January 15, 2006. * * * Effective Dates * * * Sec. 28. EFFECTIVE DATE This act shall take effect on July 1, 2005, except that: SATURDAY, JUNE 4, 2005 1361 (1) Sec. 3d shall take effect on July 1, 2006. (2) 10 V.S.A. § 4132(e) in Sec. 10 shall take effect on January 1, 2006. ANN E. CUMMINGS CLAIRE D. AYER Committee on the part of the Senate MARY PETERSON CAROLYN W. BRANAGAN JOHANNAH DONOVAN Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged H. 521. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on House bill entitled: An act relating to miscellaneous tax amendments. Was taken up for immediate consideration. Senator Cummings, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon House bill entitled: H. 521. An act relating to miscellaneous tax amendments. Respectfully reports that it has met and considered the same and recommends that the House accede to the Senate’s second, third, fourth, sixth, seventh and eighth proposals of amendment; and that the Senate recede from its first, fifth, and ninth proposals of amendment and that the bill be further amended as follows: First: By striking out Sec. 2 and subsection 11(c), and inserting in lieu thereof new Secs. 2, 2a, and 2b and subsection 11(c) to read: 1362 JOURNAL OF THE SENATE Sec. 2. 32 V.S.A. § 9741(38) is amended to read: Retail sales and use of the following shall be exempt from the tax on retail sales imposed under section 9771 of this title and the use tax imposed under section 9773 of this title. *** (38) Tax on the purchase sale or use of a tracked vehicle shall not exceed $900.00 $1,100.00. Sec. 2a. STUDY ON TRACKED VEHICLE SALES TAX CAP The commissioner of taxes shall study the advisability of indexing the tracked vehicle sales and use tax cap for inflation, and shall report his recommendation to the House Committee on Ways and Means and Senate Committee on Finance by January 15, 2006. Sec. 2b. 32 V.S.A. § 9741(38) is amended to read: (38) Tax on the sale or use of a tracked vehicle shall not exceed $1,100.00 adjusted as follows: As of July 1 of each even-numbered year, the commissioner shall adjust the most recent unrounded cap amount by the cumulative inflation index for the prior two calendar years under the Consumer Price Index for Urban Consumer All Items, and round that amount to the nearest ten dollars, and shall publish this rounded amount as the new cap. Sec. 11. EFFECTIVE DATES (c) Sec. 2 of this act ($1,100.00 cap on sales tax for tracked vehicles) shall apply to sales on and after July 1, 2005; Sec. 2a of this act (tracked vehicle tax cap study) shall take effect upon passage; Sec. 2b of this act (inflation index applied to tracked vehicle tax cap) shall take effect July 1, 2006 and the first adjustment of the cap for inflation shall be July 1, 2006. Second: entirety. By striking out Secs. 9 and 10 and subsection 11(j) in their Third: By adding two new sections to be numbered Secs. 26 and 27 to read as follows: Sec. 26. 32 V.S.A. § 312 is added to read: § 312. TAX EXPENDITURE REPORT (a) For purposes of this section, “tax expenditure” shall mean the actual or estimated loss in tax revenue resulting from any exemption, exclusion, deduction, or credit applicable to the tax. (b) Tax expenditure reports. Biennially, as part of the budget process, beginning January 15, 2009, the department of taxes shall file with the House SATURDAY, JUNE 4, 2005 1363 Committees on Ways and Means and Appropriations and the Senate Committees on Finance and Appropriations a report on tax expenditures in the personal and corporate income, sales and use, and meals and rooms tax returns, and education property tax grand lists and such other tax expenditures for which the joint fiscal office and the tax department jointly have produced revenue estimates. The report shall include, for each tax expenditure, the following information: (1) A description of the tax expenditure. (2) The most recent fiscal information available on the direct cost of the tax expenditure in the past two years. (3) The date of enactment of the expenditure. (4) A description of and estimate of the number of taxpayers directly benefiting from the expenditure provision. Sec. 27. TRANSITION REPORTS (a) The department of taxes shall file with the House Committees on Ways and Means and Appropriations, and with the Senate Committees on Finance and Appropriations reports on the following: (1) By January 15, 2006, tax expenditures reported under the personal and corporate income tax with the information required by 32 V.S.A. § 312 for the most recent fiscal year available and such other tax expenditures for which the joint fiscal office and the tax department jointly have produced revenue estimates. (2) By January 15, 2007, tax expenditures reported under the personal and corporate income tax and sales and use tax, with the information required by 32 V.S.A. § 312 for the most recent fiscal year available and such other tax expenditures for which the joint fiscal office and the tax department jointly have produced revenue estimates. (3) By January 15, 2008, tax expenditures reported under the personal and corporate income tax, sales and use tax, meals and rooms tax, and education property tax, with the information required by 32 V.S.A. § 312 for the most recent fiscal year available and such other tax expenditures for which the joint fiscal office and the tax department jointly have produced revenue estimates. (b) For each of the joint fiscal committee’s September 2005, 2006 and 2007 meetings, the joint fiscal office and the tax department shall file a joint report identifying specific tax expenditures or categories of expenditures in addition to those reported to the tax department for which revenue estimates 1364 JOURNAL OF THE SENATE shall be included in the next report or subsequent reports filed with the legislative committees. ANN E. CUMMINGS HULL P. MAYNARD, JR. Committee on the part of the Senate DAVID ALLAIRE ROBERT RUSTEN Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged H. 516. Appearing on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on House bill entitled: An act making appropriations for the support of government. Was taken up for immediate consideration. Senator Bartlett, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon House bill entitled: H. 516. An act making appropriations for the support of government. Respectfully reports that it has met and considered the same and recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. SHORT TITLE (a) This bill may be referred to as the BIG BILL - Fiscal Year 2006 Appropriations Act. SATURDAY, JUNE 4, 2005 1365 Sec. 2. PURPOSE (a) The purpose of this act is to provide appropriations for the operations of state government during fiscal year 2006. It is the express intent of the general assembly that activities of the various agencies, departments, divisions, boards, and commissions be limited to those which can be supported by funds appropriated in this act or other acts passed prior to June 30, 2005. Agency and department heads are directed to implement staffing and service levels at the beginning of fiscal year 2006 so as to meet this condition unless otherwise directed by specific language in this act or other acts of the general assembly. Sec. 3. APPROPRIATIONS (a) It is the intent of the general assembly that this act serve as the primary source and reference for appropriations for fiscal year 2006. (b) The sums herein stated are appropriated for the purposes specified in the following sections of this act. When no time is expressly stated during which any of the appropriations are to continue, the appropriations are singleyear appropriations, and only for the purpose indicated, and shall be paid from funds shown as the source of funds. If in this act there is an error in either addition or subtraction, the totals shall be adjusted accordingly. Apparent errors in referring to section numbers of statutory titles within this act may be disregarded by the commissioner of finance and management. (c) Unless codified or otherwise specified, all narrative portions of this act apply only to the fiscal year ending June 30, 2006. (d) The balance of any appropriations remaining unexpended and unencumbered at the end of the fiscal year shall revert to the appropriate fund balance unless otherwise specified in this act or other acts of the general assembly. Refunds of expenditures and reimbursements shall be credited to the appropriate fund and to appropriation accounts in the current fiscal year. Sec. 4. DEFINITIONS (a) For the purposes of this act: (1) "Encumbrances" means a portion of an appropriation reserved for the subsequent payment of existing purchase orders or contracts. The commissioner of finance and management shall make final decisions on the appropriateness of encumbrances. (2) "Grants" means subsidies, aid, or payments to local governments, to community and quasi-public agencies for providing local services, and to persons who are not wards of the state for services or supplies, and cash or other direct assistance, including pension contributions. 1366 JOURNAL OF THE SENATE (3) "Operating expenses" means property management, repair and maintenance; rental expenses; insurance, postage, travel, energy and utilities, office and other supplies; equipment, including motor vehicles, highway materials and construction, expenditures for the purchase of land, and construction of new buildings and permanent improvements; and similar items. (4) "Personal services" means wages and salaries, fringe benefits, per diems, and contracted third-party services; and similar items. Sec. 5. Secretary of administration - secretary's office Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Total 445,340 51,583 400,000 896,923 846,821 50,102 896,923 (a) The secretary of administration and the state archivist are directed to jointly develop a comprehensive strategy for the management of all records created by state agencies, including but not limited to the following areas: (1) appraisal of all current records management programs required under 3 V.S.A. § 218; (2) the use and management of electronic records; (3) the development of records management training. (b) The secretary of administration shall develop a preliminary plan of implementation of the comprehensive strategy in subsection (a), including proposed, phased time lines for the implementation, by January 1, 2006. The comprehensive strategy shall be based on actual retrieval histories and applicable statutory mandates. (c) The secretary of administration and the state archivist shall report to the house and senate committees on government operations and appropriations on this initiative on or before January 15, 2006, and recommend any statutory changes that will reduce the amount of records maintained and stored by state agencies. (d) Of the above appropriation $400,000, is for grants to the 11 existing regional marketing programs (RMP). These funds plus additional funds appropriated in this act for regional marketing activities shall continue to be distributed by the existing formula. RMP funds shall be used on the following marketing activities (in no specific order): regional websites, consumer/trade SATURDAY, JUNE 4, 2005 1367 shows, packages/itineraries, regional publications and guides, toll free phone lines and fulfillment, public relations, advertising, familiarization tours, welcome center promotion, joint projects, and administration. Sec. 6. IN-STATE TRAVEL REDUCTION (a) The secretary of administration is directed to reduce in-state travel budgets, thereby reducing operating expense appropriations by $300,000 in general funds throughout the executive branch of state government and in place of this funding, encourage departments and agencies to utilize Vermont interactive television for meetings. The secretary shall report to the house and senate committees on appropriations by the end of December 2006 on the use of Vermont interactive television by state agencies and departments during fiscal year 2006. Sec. 7. Information and innovation - GOVnet Personal services Operating expenses Total Source of funds Internal service funds 567,046 189,353 756,399 756,399 Sec. 8. Information and innovation - communications and information technology Personal services Operating expenses Total Source of funds Internal service funds 3,482,819 563,177 4,045,996 4,045,996 (a) The commissioner of information and innovation shall, with the cooperation of the legislative director of information technology, report to the general assembly by January 15, 2006 on the potential for conversion of the current legislative e-mail service to the same system used by the executive branch. The report shall include direct savings and costs associated with such a conversion, a time line for such a conversion and how customer service, training, privacy, and security concerns would be addressed in such a conversion. (b) The commissioner of information and innovation shall report to the general assembly by January 15, 2006 on the potential for conversion of the current telephone system to a voice-over internet protocol (VOIP) based system. The report shall include the estimated cost of such a conversion, the 1368 JOURNAL OF THE SENATE potential savings a VOIP system may provide, and consideration of customer service concerns from both the state employee and state citizen perspective. Sec. 9. Finance and management - financial operations Personal services Operating expenses Total Source of funds Internal service funds 2,139,003 1,203,059 3,342,062 3,342,062 (a) Pursuant to 32 V.S.A. § 307(e), financial management fund charges not to exceed $4,295,964, plus the costs of fiscal year 2006 salary increases bargained as part of the State/VSEA agreement, are hereby approved. Of this amount, $867,229 will be used to support the HRMS system that is operated by the department of human resources. Sec. 10. Finance and management - budget and management Personal services Operating expenses Total Source of funds General fund Transportation fund Interdepartmental transfer Total 908,332 128,752 1,037,084 816,881 111,313 108,890 1,037,084 (a) The department of finance and management shall propose to the general assembly on January 15, 2006 the necessary statutory language and process changes required to consolidate at least 20 percent of the special funds currently in the statewide accounting system. Sec. 11. Human resources - operations Personal services Operating expenses Total Source of funds General fund Transportation fund Interdepartmental transfer Total 1,606,082 314,842 1,920,924 1,281,126 347,778 292,020 1,920,924 SATURDAY, JUNE 4, 2005 1369 Sec. 12. Human resources - HR workforce planning & employment services Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Total 841,435 301,357 1,142,792 708,084 199,708 235,000 1,142,792 Sec. 13. Human resources - employee benefits & wellness Personal services Operating expenses Total Source of funds Internal service funds 1,448,884 355,564 1,804,448 1,804,448 Sec. 14. Human resources - information technology Personal services Operating expenses Total Source of funds Internal service funds 515,184 370,605 885,789 885,789 Sec. 15. Libraries Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 1,881,114 1,573,421 70,000 3,524,535 2,328,186 227,820 812,529 156,000 3,524,535 Sec. 16. Tax - administration/collection Personal services Operating expenses Total Source of funds General fund 11,477,404 2,684,071 14,161,475 13,167,874 1370 JOURNAL OF THE SENATE Transportation fund Tobacco fund Special funds Interdepartmental transfer Total 213,601 58,000 542,000 180,000 14,161,475 Sec. 17. Buildings and general services - administration Personal services Operating expenses Total Source of funds Interdepartmental transfer 1,438,892 109,308 1,548,200 1,548,200 Sec. 18. Buildings and general services - engineering Personal services Operating expenses Total Source of funds General fund Transportation fund Interdepartmental transfer Total 1,876,190 444,472 2,320,662 2,173,473 102,189 45,000 2,320,662 Sec. 19. Buildings and general services - information centers Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Total 3,294,693 1,177,513 370,000 4,842,206 42,914 4,799,292 4,842,206 Sec. 20. Buildings and general services - purchasing Personal services Operating expenses Total Source of funds General fund Transportation fund Total 704,895 169,370 874,265 656,618 217,647 874,265 SATURDAY, JUNE 4, 2005 Sec. 21. Buildings and general services - public records Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Total 863,949 701,543 1,565,492 1,071,612 182,620 311,260 1,565,492 Sec. 22. Buildings and general services - postal services Personal services Operating expenses Total Source of funds General fund Transportation fund Internal service funds Total 599,500 142,952 742,452 40,000 30,000 672,452 742,452 Sec. 23. Buildings and general services - copy center Personal services Operating expenses Total Source of funds Internal service funds 788,629 215,702 1,004,331 1,004,331 Sec. 24. Buildings and general services - supply center Personal services Operating expenses Total Source of funds Internal service funds 246,376 132,601 378,977 378,977 Sec. 25. Buildings and general services - federal surplus property Personal services Operating expenses Total Source of funds Enterprise funds 63,749 70,299 134,048 134,048 1371 1372 JOURNAL OF THE SENATE Sec. 26. Buildings and general services - state surplus property Personal services Operating expenses Total Source of funds Internal service funds 58,930 65,680 124,610 124,610 Sec. 27. Buildings and general services - property management Personal services Operating expenses Total Source of funds Internal service funds 1,240,936 2,606,448 3,847,384 3,847,384 Sec. 28. Buildings and general services - all other insurance Personal services Operating expenses Total Source of funds Internal service funds 59,648 11,739 71,387 71,387 Sec. 29. Buildings and general services - general liability insurance Personal services Operating expenses Total Source of funds Internal service funds 223,314 38,632 261,946 261,946 Sec. 30. Buildings and general services - workers' compensation insurance Personal services Operating expenses Total Source of funds Internal service funds 958,583 152,019 1,110,602 1,110,602 (a) Pursuant to 32 V.S.A. § 307(e), workers' compensation fund charges not to exceed $8,664,387, plus the costs of fiscal year 2006 salary increases bargained as part of the State/VSEA agreement, are hereby approved. Sec. 31. Buildings and general services - fee for space Personal services Operating expenses Total 10,385,701 9,960,599 20,346,300 SATURDAY, JUNE 4, 2005 Source of funds Internal service funds 1373 20,346,300 (a) Pursuant to 29 V.S.A. § 160a(b)(3), facilities operations fund charges not to exceed $20,346,300, plus the costs of fiscal year 2006 salary increases bargained as part of the State/VSEA agreement, are hereby approved. (b) The following 6 (six) classified positions with any incumbents shall be moved from the department of health – Vermont state hospital to the department of buildings and general services: Custodian I (position numbers 740652, 740684, 740716, 741010), Custodian III (position number 740651), and VSH Housekeeper (position number 740650). Sec. 32. Geographic information system Grants Source of funds Special funds 393,957 393,957 Sec. 33. Auditor of accounts Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Internal service funds Total 1,866,196 103,338 1,969,534 468,742 59,317 54,455 1,387,020 1,969,534 Sec. 34. State treasurer Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Private purpose trust fund Total 2,158,253 329,009 25,000 2,512,262 837,580 104,035 1,475,133 95,514 2,512,262 (a) Of the above general fund appropriation, $25,000 shall be transferred into the armed services scholarship fund established in 16 V.S.A. § 2541. 1374 JOURNAL OF THE SENATE Sec. 34a. 32 V.S.A. § 436 is amended to read: § 436. INTERFUND BORROWING Notwithstanding any provisions of law, the state treasurer, with the approval of the governor, may borrow from any funds heretofore or hereafter created by the legislature such available amounts as he or she may determine to be necessary or desirable for the purpose of defraying the expenses of government, including the payment of notes issued for such purposes. Such borrowing may be only made twice a year; first, during the period commencing 15 business days prior to the end of the state's fiscal year and ending 15 business days after the end of the state's fiscal year, and second, during the period commencing on December 10, or the preceding Friday if December 10 shall fall on a Saturday or Sunday, and ending on January 10 of the succeeding year. During the period commencing with the first day of the state's succeeding fiscal year and ending on a date not more than 15 business days thereafter, No later than the last day of the period during which the funds were borrowed, the state treasurer shall transfer to any such fund from which such initial borrowing has been made an amount equal to such borrowed amount, together with interest thereon at such rate as the state treasurer in his or her sole discretion shall determine. Sec. 34b. COMMISSION ON FUNDING THE STATE TEACHERS’ RETIREMENT SYSTEM OF VERMONT PENSION ACCUMULATION FUND (a) A commission is created to make recommendations for funding an adequate, sustainable, and actuarially sound retirement benefit plan for the state teachers’ retirement system of Vermont. The commission shall be comprised of the following 13 members: (1) two members of the house of representatives, appointed by the speaker of the house; (2) two members of the senate, appointed by the committee on committees; (3) the chair of the board of trustees of the Vermont state teachers’ retirement system; (4) the commissioner of finance and management; (5) the commissioner of education; (6) the state treasurer, who shall chair this commission; (7) two members of the Vermont national education association, appointed by the association; SATURDAY, JUNE 4, 2005 1375 (8) one member of the Vermont superintendents’ association, appointed by the association; (9) one member of the Vermont school boards’ association, appointed by the association; and (10) one public member with pension and benefit experience, appointed by the governor. (b) The commission shall file a report of its recommendations with the governor and the general assembly on November 15, 2005. (c) Legislative members shall be entitled to per diem compensation and expenses as provided for in section 406 of Title 2. Sec. 35. State treasurer - abandoned property Personal services Operating expenses Total Source of funds Private purpose trust fund 541,534 242,188 783,722 783,722 Sec. 36. Vermont state retirement system Personal services Operating expenses Total Source of funds Pension trust fund 20,448,159 729,324 21,177,483 21,177,483 Sec. 37. Municipal employees' retirement system Personal services Operating expenses Total Source of funds Pension trust fund 1,427,518 213,732 1,641,250 1,641,250 Sec. 38. State labor relations board Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds 157,439 40,128 197,567 187,100 4,597 5,870 1376 JOURNAL OF THE SENATE Total 197,567 Sec. 39. Executive office - governor's office Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Interdepartmental transfer Total 1,158,112 369,756 1,527,868 1,206,200 157,483 3,185 161,000 1,527,868 Sec. 40. Executive office - national and community service Personal services Operating expenses Grants Total Source of funds General fund Federal funds Total 191,634 121,871 1,745,415 2,058,920 56,528 2,002,392 2,058,920 Sec. 41. VOSHA review board Personal services Operating expenses Total Source of funds General fund Federal funds Total 31,652 8,542 40,194 20,097 20,097 40,194 Sec. 42. Use tax reimbursement fund - municipal current use Grants Source of funds General fund Transportation fund Total 6,898,455 4,569,542 2,328,913 6,898,455 Sec. 43. Lieutenant governor Personal services Operating expenses Total 118,723 17,649 136,372 SATURDAY, JUNE 4, 2005 Source of funds General fund Transportation fund Total 1377 117,089 19,283 136,372 Sec. 44. Legislature Personal services Operating expenses Total Source of funds General fund Transportation fund Total 2,925,702 2,191,219 5,116,921 4,414,316 702,605 5,116,921 Sec. 45. Legislative council Personal services Operating expenses Total Source of funds General fund Transportation fund Total 1,685,880 136,604 1,822,484 1,588,701 233,783 1,822,484 (a) The amount of $30,000 in general funds that are carried forward in this appropriation shall revert to the general fund in fiscal year 2006. Sec. 46. Legislative information technology Personal services Operating expenses Total Source of funds General fund 309,186 254,227 563,413 563,413 (a) The amount of $20,000 in general funds that are carried forward in this appropriation shall revert to the general fund in fiscal year 2006. Sec. 47. Sergeant at arms Personal services Operating expenses Total Source of funds General fund Transportation fund 438,870 62,909 501,779 461,044 40,735 1378 JOURNAL OF THE SENATE Total 501,779 Sec. 48. Joint fiscal committee Personal services Operating expenses Total Source of funds General fund Transportation fund Total 1,045,988 72,385 1,118,373 982,901 135,472 1,118,373 Sec. 48a. REPEAL (a) Sec. 4 of No. 119 of the Acts of 2000 is repealed. No further report on the basic needs budget calculation pursuant to this section shall be required. However, the report shall be updated as needed on or before January 1 of the interim year, 2006, to reflect any significant economic, policy, or statutory changes that substantially affect the information in the report issued the previous January 15. Sec. 49. Lottery commission Personal services Operating expenses Total Source of funds Enterprise funds 1,279,592 1,057,167 2,336,759 2,336,759 (a) The lottery commission shall not reduce funding for the responsible gambling program. (b) The lottery commission shall transfer $130,000 to the department of health, office of alcohol and drug abuse programs, to support the gambling addiction program. (c) Notwithstanding any other provision of law, all rules necessary to implement the Tri-State Triple Play game shall be promulgated by the TriState Lotto Commission, including those portions of the rules that are specific to the operation of the Tri-State Triple Play game in the state of Vermont. Sec. 50. Payments in lieu of taxes Grants Source of funds General fund Special funds Total 2,500,000 600,000 1,900,000 2,500,000 SATURDAY, JUNE 4, 2005 1379 (a) The above appropriation is for state payments in lieu of property taxes under subchapter 4 of chapter 123 of Title 32, and the payments shall be calculated in addition to, and without regard to, the appropriations for PILOT for Montpelier and correctional facilities elsewhere in this act. Sec. 51. Payments in lieu of taxes - Montpelier Grants Source of funds General fund 184,000 184,000 Sec. 52. Payments in lieu of taxes - correctional facilities Grants Source of funds General fund Sec. 53. Total general government Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Enterprise funds Internal service funds Pension trust funds Private purpose trust funds Interdepartmental transfer Total 40,000 40,000 125,912,602 39,130,842 10,040,473 5,148,680 58,000 2,835,018 2,470,807 40,039,703 22,818,733 879,236 2,491,110 125,912,602 Sec. 54. Protection to persons and property - attorney general Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Interdepartmental transfer Total 5,356,126 924,563 6,280,689 2,822,155 69,615 1,112,209 290,000 617,000 1,369,710 6,280,689 1380 JOURNAL OF THE SENATE (a) Of the above appropriation, $25,000 shall be reserved by the attorney general for payment of expenses incurred by towns in defense of grand list appeals engaged in litigation with the Washington electric cooperative. (b) Notwithstanding any other provisions of law, the office of the attorney general, Medicaid fraud control unit is authorized to retain one-half of any civil monetary penalty proceeds from global Medicaid fraud settlements. All penalty funds retained shall be used to finance Medicaid fraud and residential abuse unit activities. Sec. 54a. 33 V.S.A. § 2005(a) is amended to read: § 2005. PHARMACEUTICAL MARKETERS (a)(1) Annually on or before January 1 December 1 of each year, every pharmaceutical manufacturing company shall disclose to the office of the attorney general the value, nature, and purpose of any gift, fee, payment, subsidy, or other economic benefit provided in connection with detailing, promotional, or other marketing activities by the company, directly or through its pharmaceutical marketers, to any physician, hospital, nursing home, pharmacist, health benefit plan administrator, or any other person in Vermont authorized to prescribe, dispense, or purchase prescription drugs in this state. Disclosure shall include the name of the recipient. Disclosure shall be made on a form and in a manner prescribed by the office of the attorney general and shall require pharmaceutical manufacturing companies to report the value, nature, and purpose of all gift expenditures according to specific categories. The office of the attorney general shall report annually on the disclosures made under this section to the general assembly and the governor on or before March 1 April 1. (2) Annually in the month of October on October 1, each company subject to the provisions of this section also shall disclose to the office of the attorney general, the name and address of the individual responsible for the company’s compliance with the provisions of this section, or if this information has been previously reported, any changes to the name or address of the individual responsible for the company’s compliance with the provisions of this section. *** Sec. 54b. COMMISSION ON SOCIAL SECURITY NUMBER USAGE AND OTHER PRIVACY ISSUES (a) The Social Security Usage Study Commission is hereby created to study the usage of Social Security numbers and other privacy issues in the public and private sector. The commission shall consist of the following members: one representative from the agency of administration, one SATURDAY, JUNE 4, 2005 1381 representative from the attorney general’s office, one representative from the agency of human services, one representative from the agency of commerce and community development, one representative from the department of banking, insurance, securities, and health care administration, one representative from the department of labor, the state archivist, two members of the senate chosen by the committee on committees, and two members of the house of representatives chosen by the speaker of the house. The commission shall be chaired by the attorney general’s office. The commission shall solicit participation from the Vermont League of Cities and Towns and any other interested affected parties. The commission shall study the use of Social Security numbers by both public and private entities and develop proposals for reducing such use wherever possible and protecting privacy and security when the numbers must be used. In addition, these entities shall study the costs and benefits of document destruction. Assessment of the appropriate implementation periods, investigation of any potential secondary effects, and prohibiting the following shall be considered by the commission: (1) printing of an individual’s Social Security number on any card required for the individual to access products or services provided by the entity; (2) requiring that an individual transmit his or her Social Security number over the internet, unless the connection is secure or the Social Security number is encrypted and requiring an individual to use his or her Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website; or (3) printing of an individual’s Social Security number on any materials that are mailed to the individual, unless state or federal law requires the Social Security number to be on the materials. (b) The commission shall also study the issue of security breaches experienced by collectors of personal information about consumers, and shall develop proposals for effectively notifying consumers about such security breaches. (c) The commission shall prepare recommendations and report to the senate committees on judiciary and finance and the house committees on commerce and judiciary on or before January 15, 2006. (d) Legislative members shall be entitled to compensation and reimbursement as provided in section 406 of Title 2. 1382 JOURNAL OF THE SENATE Sec. 54c. EXTENSION OF SUNSET; CONFIDENTIALITY AND NONCOMMERCIAL DISTRIBUTION OF CERTAIN TAX RECORDS AND DATA Sec. 6 of Act No. 158 of the Acts of 2004 is amended to read: Sec. 6. SUNSET This act shall expire on June 30, 2005 2006, and sections of the Vermont Statutes Annotated which are amended by this act shall revert to the language in effect prior to the effective date of this act. Sec. 55. Vermont court diversion Grants Source of funds General fund Transportation fund Special funds Total 1,525,071 981,093 143,978 400,000 1,525,071 Sec. 56. Center for crime victims services Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 1,035,455 220,612 7,425,277 8,681,344 1,018,644 3,541,155 4,058,345 63,200 8,681,344 (a) The center shall explore credit card use to facilitate restitution payments from offenders. Sec. 57. State's attorneys Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds 7,807,300 1,203,460 45,000 9,055,760 6,856,903 369,310 146,375 5,000 SATURDAY, JUNE 4, 2005 Interdepartmental transfer Total 1383 1,678,172 9,055,760 Sec. 58. Sheriffs Personal services Operating expenses Total Source of funds General fund Transportation fund Total 2,752,546 307,269 3,059,815 2,489,576 570,239 3,059,815 (a) Of the above appropriation, $15,000 shall be transferred to the state's attorneys’ office as reimbursement for the cost of the executive director's salary. Sec. 59. Defender general - public defense Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Interdepartmental transfer Total 5,681,340 636,231 6,317,571 5,200,918 495,230 502,502 118,921 6,317,571 Sec. 60. Defender general - assigned counsel Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Total 2,734,829 52,850 2,787,679 2,448,441 239,238 100,000 2,787,679 Sec. 61. Military - administration Personal services Operating expenses Grants Total Source of funds 450,746 152,035 200,000 802,781 1384 JOURNAL OF THE SENATE General fund 802,781 (a) Of the above appropriation, an amount not to exceed $200,000 shall be disbursed to the Vermont student assistance corporation to replenish the amount available for the national guard scholarship program established in 16 V.S.A. § 2856 to a level of $200,000. At the end of fiscal year 2006, any part of the $200,000 appropriation not transferred to the Vermont student assistance corporation shall be reverted to the general fund. (b) Total disbursements by the Vermont student assistance corporation under 16 V.S.A. § 2856 shall not exceed $200,000 in fiscal year 2006. Sec. 62. Military - air service contract Personal services Operating expenses Total Source of funds General fund Federal funds Total 3,838,895 837,681 4,676,576 322,658 4,353,918 4,676,576 Sec. 63. Military - army service contract Personal services Operating expenses Total Source of funds General fund Federal funds Total 2,692,018 5,780,134 8,472,152 110,470 8,361,682 8,472,152 Sec. 64. Military - building maintenance Personal services Operating expenses Total Source of funds General fund 883,960 383,512 1,267,472 1,267,472 Sec. 65. Military - veterans' affairs Personal services Operating expenses Grants Total Source of funds General fund 246,316 108,740 121,165 476,221 476,221 SATURDAY, JUNE 4, 2005 1385 (a) Of the above appropriation, $15,000 shall be used for continuation of the Vermont Medal Program, $40,000 shall be used to provide assistance to the survivors of casualties in the War on Terrorism, $10,000 shall be used for the expenses of the governor's Veterans' Advisory Council, and $15,000 shall be used for the Veterans’ Day Parade. (b) Of the above appropriation, $5,000 shall be granted to the Vermont state council of the Vietnam Veterans of America to fund the service officer program. Sec. 66. Labor and industry Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Total 3,149,401 719,650 75,000 3,944,051 836,000 1,968,559 1,139,492 3,944,051 Sec. 67. Criminal justice training council Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Interdepartmental transfer Total 873,949 880,979 1,754,928 902,574 281,919 500,435 70,000 1,754,928 Sec. 68. Liquor control - enforcement and licensing Personal services Operating expenses Total Source of funds Tobacco fund Enterprise funds Total 1,557,469 155,685 1,713,154 289,768 1,423,386 1,713,154 Sec. 68a. DEPARTMENT OF LIQUOR CONTROL; THIRD CLASS CABARET LICENSE; REFUND AUTHORITY 1386 JOURNAL OF THE SENATE (a) Upon request of a holder of a third class cabaret license, the department of liquor control shall refund the fee paid for the third class cabaret license prorated from the date of the request until the expiration of the license, provided the cabaret license was acquired for the purpose of permitting smoking in the cabaret licensed area. Sec. 69. Liquor control - administration Personal services Operating expenses Total Source of funds Enterprise funds 1,250,029 352,646 1,602,675 1,602,675 Sec. 70. Liquor control - warehousing and distribution Personal services Operating expenses Total Source of funds Enterprise funds 716,954 165,065 882,019 882,019 Sec. 71. Vermont racing commission Personal services Operating expenses Total Source of funds General fund 2,076 2,924 5,000 5,000 Sec. 72. Secretary of state Personal services Operating expenses Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 3,603,036 2,746,911 6,349,947 583,525 3,691,422 2,000,000 75,000 6,349,947 (a) Of the above special fund appropriation, the corporation division of the secretary of state's office represents $456,403, and these funds shall be from the securities regulation and supervision fund in accordance with 9 V.S.A. § 4230(b). Sec. 72a. Sec. 12(a) of No. 108 of the Acts of 2004 is amended to read: SATURDAY, JUNE 4, 2005 1387 (a) 26 V.S.A. § 1724 (formulary committee) shall be repealed in its entirety on December 31, 2005 July 1, 2006. Any formulary in effect on this date shall remain in effect unless or until a process for adopting a new formulary is authorized by law. Sec. 72b. REPEAL 26 V.S.A. § 1728b (disclosure of information by optometrist) is repealed. Sec. 73. banking Banking, insurance, securities, and health care administration Personal services Operating expenses Total Source of funds Special funds 1,141,527 248,745 1,390,272 1,390,272 (a) Notwithstanding 9 V.S.A. § 4230(b), in fiscal year 2006, the commissioner of banking, insurance, securities, and health care administration may transfer up to $200,000 from the securities regulation and supervision fund to the banking supervision fund established in 8 V.S.A. § 19(f). Sec. 74. Banking, insurance, securities, and health care administration insurance Personal services Operating expenses Total Source of funds Special funds Sec. 75. captive 3,017,341 530,135 3,547,476 3,547,476 Banking, insurance, securities, and health care administration Personal services Operating expenses Total Source of funds Special funds 2,565,519 387,214 2,952,733 2,952,733 Sec. 76. Banking, insurance, securities, and health care administration securities Personal services Operating expenses Total Source of funds 519,436 130,100 649,536 1388 JOURNAL OF THE SENATE Special funds 649,536 Sec. 77. Banking, insurance, securities, and health care administration - health care administration Personal services Operating expenses Total Source of funds General fund Special funds Interdepartmental transfer Total Sec. 77a. 3,609,269 358,002 3,967,271 469,832 3,397,439 100,000 3,967,271 18 V.S.A. § 9405a is amended to read: § 9405a. COMMUNITY NEEDS ASSESSMENT AND STRATEGIC PLANNING On or before January 1, 2005, each hospital shall conduct a four-year community needs assessment. The assessment shall identify and prioritize the health care needs of the service area or patient population for which a hospital provides services, and engage the public in the hospital’s strategic planning process. It shall be accomplished in collaboration with community members, including other health care professionals in the community, local government officials, community organizations, and local businesses. The process for assessing the community’s health care needs shall include at least one public meeting held solely for soliciting public comment, notice for which shall be provided pursuant to section 174 of Title 1. The needs assessment shall be prepared in a uniform format approved by the commissioner and shall be summarized in the hospital’s community report. In addition, each hospital shall develop a mechanism for receiving ongoing public comment, including an annual public meeting, regarding the community needs assessment and for revising it biannually so that the assessment will continue to project a four-year vision. Subsequent community needs assessments shall be conducted every four years thereafter, beginning March 1, 2009. SATURDAY, JUNE 4, 2005 1389 Sec. 77b. 18 V.S.A. § 9405b(b) is amended to read: (b) On or before January 1, 2005, and annually thereafter beginning on June 1, 2006, the board of directors or other governing body of each hospital licensed under chapter 43 of this title shall publish on its website, making paper copies available upon request, its community report in a uniform format approved by the commissioner, and in accordance with the standards and procedures adopted by rule under this section, and shall hold one or more public hearings to permit community members to comment on the report. Notice of meetings shall be by publication, consistent with section 174 of Title 1. Hospitals located outside this state which serve a significant number of Vermont residents, as determined by the commissioner, shall be invited to participate in the community report process established by this subsection. Sec. 77c. 18 V.S.A. § 9432(7) is amended to read: (7) “Health care facility” means all persons or institutions, including mobile facilities, whether public or private, proprietary or not for profit, which offer diagnosis, treatment, inpatient, or ambulatory care to two or more unrelated persons, and the buildings in which those services are offered. The term shall not apply to any institution operated by religious groups relying solely on spiritual means through prayer for healing, but shall include but is not limited to: *** Sec. 77d. 18 V.S.A. § 9435(c) is amended to read: (c) The provisions of subsection (a) of this section shall not apply to offices owned or, operated, or leased by a hospital or its subsidiary, parent, or holding company, outpatient diagnostic or therapy programs, kidney disease treatment centers, independent diagnostic laboratories, cardiac catheterization laboratories, radiation therapy facilities, ambulatory surgical centers, and diagnostic imaging facilities and similar facilities owned or operated by a physician, dentist, or other practitioner of the healing arts. Sec. 77e. 18 V.S.A. § 9440 is amended to read: § 9440. PROCEDURES *** (c) The application process shall be as follows: *** (3) The commissioner shall review each letter of intent and, if the letter contains the information required for letters of intent as established by the 1390 JOURNAL OF THE SENATE commissioner by rule, within 30 days, determine whether the project described in the letter will require a certificate of need. If the commissioner determines that a certificate of need is required for a proposed expenditure or action, an application for a certificate of need shall be filed before development of the project begins. (4) Within 15 days or, in the case of review cycle applications under section 9439 of this title, within 30 days of receipt of an application, the commissioner shall notify the applicant that the application contains all necessary information required and is complete, or that additional information is required. *** Sec. 77f. 18 V.S.A. § 9456(c) is amended to read: (c) Individual hospital budgets established under this section shall: *** (5) include a finding that the analysis provided in subdivision (b)(10) (b)(9) of this section is a reasonable methodology for reflecting a reduction in net revenues for non-Medicaid payers. Sec. 77g. SUSPENSION OF CERTIFICATE OF NEED “GAP” JURISDICTION (a) The requirements of subsection 9434(d) of Title 18 are suspended through June 30, 2007. As part of their annual budget reviews, hospitals shall report any projects that otherwise would have required a letter of intent to the commissioner of banking, insurance, securities, and health care administration under subsection 9434(d). Sec. 78. Banking, insurance, securities, and health care administration administration Personal services Operating expenses Total Source of funds Special funds 922,370 48,000 970,370 970,370 (a) Notwithstanding any provision of law to the contrary, the commissioner of BISHCA is authorized to take immediate action to remedy air quality problems that have resulted in chemical toxicity to one or more department employees; the commissioner may in his or her discretion authorize telecommuting or off-site work locations for employees who have documented medical problems which have been, or may be, related to workspace air quality SATURDAY, JUNE 4, 2005 1391 that has resulted in chemical toxicity; and the commissioner may use funds appropriated to the department of buildings and general services to implement any necessary improvements, as approved by the secretary of administration. Sec. 79. Public safety - administration Personal services Operating expenses Grants Total Source of funds General fund 1,502,205 27,548 48,000 1,577,753 1,577,753 (a) The department of public safety shall provide business manager services for the Vermont criminal justice training council. (b) The department of public safety shall submit a plan for development of a statewide public safety communications system to the house and senate committees on appropriations and government operations and the joint fiscal committee. No funds are to be expended for design, acquisition, or implementation of a new statewide public safety communications system pending review by the aforementioned committees and approval by the joint fiscal committee. (c) The law enforcement advisory board is requested to include comments and recommendations on the proposed statewide public safety communications system in its next report to the governor and the general assembly. (d) The commissioner of public safety and the commissioner of health shall work cooperatively to transition the forensic alcohol program from the Vermont department of health to the department of public safety as soon as administratively possible and shall report to the general assembly on the status of the transition during the 2006 legislative session. In addition, the commissioner of buildings and general services and the commissioner of public safety shall submit a plan for the design and construction, including funding requirements of a new forensics laboratory, to the general assembly by January 15, 2006. (e) Of the above appropriation, $26,000 shall be used for a grant to the Essex County sheriff department. (f) In order to achieve better coordination of all law enforcement resources in the state, the law enforcement advisory board created pursuant to 24 V.S.A. § 1939 shall study the relationship between the state police and local coverage to ensure effective coverage in a cost-effective manner for Vermonters. Specifically it shall: 1392 JOURNAL OF THE SENATE (1) Develop a list of the duties of the department of public safety that cover the entire state such as the crime lab, special investigations, and the mission and duties of the state police; (2) Review the state police coverage and state and local public safety relationships in other states such as New Hampshire and Connecticut, including a review of models that require communities with over 3,500 in population to provide or pay for their law enforcement; (3) Develop ideas for several pilot projects that use local law enforcement to enhance day-to-day coverage and free the state police to focus on its mission and statewide responsibilities; (4) Submit recommendations to the house and senate committees on judiciary and appropriations as part of its annual budget submission to the general assembly in January 2006. Sec. 80. Public safety - homeland security Personal services Operating expenses Grants Total Source of funds General fund Federal funds Interdepartmental transfer Total 851,441 974,324 11,771,817 13,597,582 363,007 13,217,575 17,000 13,597,582 Sec. 81. Public safety - Vermont state police Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 36,221,326 6,337,277 1,759,547 44,318,150 17,388,274 18,555,988 3,369,661 4,458,538 545,689 44,318,150 (a) The above appropriation for personal services provides funding for 316 state troopers, including 10 “corridor” troopers. Three additional troopers are funded in the homeland security section for a total of 319, the same number as SATURDAY, JUNE 4, 2005 1393 in fiscal year 2005. The above appropriation for operating expenses includes $1,042,000 for the purchase of replacement vehicles. (b) Of the above appropriation, $35,000 in special funds shall be available for snowmobile law enforcement activities and $35,000 in general funds shall be available to the southern Vermont wilderness search and rescue team, which comprises state police, the department of fish and wildlife, county sheriffs, and local law enforcement personnel in Bennington, Windham, and Windsor counties for snowmobile enforcement. (c) Of the $230,000 allocated for local heroin interdiction grants funded in this section, $190,000 shall be used by the Vermont drug task force to fund three (3) town task force officers. These town task force officers will be dedicated to heroin and heroin-related drug (e.g. methadone, oxycontin, crack cocaine, and methamphetamine) enforcement efforts. The remaining $40,000 shall remain as a "pool" of money available to local and county law enforcement to fund overtime costs associated with heroin investigations. Any unexpended funds from prior fiscal years shall be carried forward. (d) In the event that federal funding currently supporting the Vermont drug task force is reduced, the department shall redirect any other federal funds that may be utilized for this purpose, including the methamphetamine grant, and shall redirect available state resources to maintain the activities of the task force. Sec. 81a. 24 V.S.A. §1939(a) is amended to read: (a) A law enforcement advisory board is created within the department of public safety to advise the commissioner of public safety, the governor, and the general assembly on issues involving the cooperation and coordination of all agencies which exercise law enforcement responsibilities. The board shall review any matter which affects more than one law enforcement agency. The board shall comprise the following members: (1) the commissioner of the department of public safety; *** (11) the executive director of the Vermont criminal justice training council; and (12) the defender general or his or her designee; and (13) one employee-representative of the Vermont state police, appointed by the director of the Vermont state employees’ association. 1394 JOURNAL OF THE SENATE Sec. 82. Public safety - criminal justice services Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 4,933,618 3,585,669 3,969,200 12,488,487 280,000 4,100,407 1,256,685 6,272,395 579,000 12,488,487 (a) Of the above general fund appropriation, $30,000 plus available matching funds shall be used to address the DNA processing associated with S.15 of the 2005 legislative session. This includes hiring additional staff at the Vermont crime lab. Sec. 83. Public safety - emergency management Personal services Operating expenses Grants Total Source of funds Transportation fund Special funds Federal funds Interdepartmental transfer Total 1,495,775 532,443 630,012 2,658,230 63,969 367,903 2,223,858 2,500 2,658,230 Sec. 84. Public safety – emergency management - radiological emergency response plan Personal services Operating expenses Grants Total Source of funds Special funds 548,205 271,030 496,112 1,315,347 1,315,347 (a) Of the above appropriation, the grants to the department of health are increased by $13,911 over fiscal year 2005 and are level-funded for other state agencies. SATURDAY, JUNE 4, 2005 1395 (b) Of the above appropriation, $87,028 is provided to establish a western reception center. This is subject to selection and approval of a site by the commissioner of public safety and VEM/RERP in collaboration with officials of the Emergency Planning Zone (EPZ). (c) The radiological emergency response plan (RERP) functions and funding shall be a separate appropriation in fiscal year 2006 and henceforth. (d) In fiscal year 2006, the division of emergency management in collaboration with the state agencies, the management of the nuclear power plant, the selectboards of the municipalities in the emergency planning zone, the Windham regional planning commission, and any other municipality or EPZ entity defined by the state as required to support the RERP shall develop the budget for expenditures from the radiological emergency response plan fund for fiscal year 2007 following the provisions of 20 V.S.A. § 38(a). From the fund, each town within the emergency planning zone shall receive an annual base payment of no less than $5,000 for radiological emergency response related expenditures. Additional expenditures by the municipalities in the emergency planning zone, the Windham regional planning commission, and any other municipality or EPZ entity defined by the state as required to support the plan shall be determined during the budget development process established by this section. (e) Of the above special fund appropriation, up to $30,000 shall be available to contract with any radio station serving the emergency planning zone for the emergency alert system. Sec. 85. Public safety - fire safety Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 3,356,644 1,099,628 4,456,272 582,688 80,964 3,481,236 92,384 219,000 4,456,272 (a) Of the above general fund appropriation, $50,000 shall be granted to the Vermont rural fire protection task force for the purpose of designing dry hydrants. 1396 JOURNAL OF THE SENATE Sec. 86. Agriculture, food and markets - administration Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 880,196 453,668 342,004 1,675,868 1,409,035 117,216 91,004 58,613 1,675,868 Sec. 87. Agriculture, food and markets - food safety and consumer protection Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 2,360,887 281,572 2,901,492 5,543,951 1,381,891 38,862 3,344,115 772,083 7,000 5,543,951 Sec. 88. Agriculture, food and markets - agricultural development Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Total 816,602 504,152 1,049,421 2,370,175 609,472 1,571,703 189,000 2,370,175 Sec. 89. Agriculture, food and markets - laboratories, agricultural resource management and environmental stewardship Personal services Operating expenses Grants Total 3,003,076 554,576 616,000 4,173,652 SATURDAY, JUNE 4, 2005 Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 1397 1,805,695 1,497,845 598,324 271,788 4,173,652 Sec. 90. Agriculture, food and markets - state stipend Grants Source of funds General fund 175,000 175,000 Sec. 91. Agriculture, food and markets - mosquito control Personal services Operating expenses Total Source of funds Special funds 20,000 70,000 90,000 90,000 Sec. 92. Public service - regulation and energy Personal services Operating expenses Grants Total Source of funds Special funds Federal funds Interdepartmental transfer Total 4,464,769 631,466 800,000 5,896,235 4,713,435 1,157,800 25,000 5,896,235 (a) As part of its report on the use of the clean energy development fund as required by section 3 of H.545 of 2005, the department of public service shall consider efforts to support development and increased use of cogeneration and biomass technologies including the possible dedication of at least $250,000 annually for this purpose. Sec. 93. Public service - purchase and sale of power Personal services Operating expenses Total Source of funds Special funds 10,600 2,215 12,815 12,815 1398 JOURNAL OF THE SENATE Sec. 94. Enhanced 9-1-1 board Personal services Operating expenses Total Source of funds Special funds 2,020,257 397,331 2,417,588 2,417,588 Sec. 95. Public service board Personal services Operating expenses Total Source of funds Special funds 2,380,294 310,000 2,690,294 2,690,294 Sec. 96. Judiciary Personal services Operating expenses Total Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Interdepartmental transfer Total 24,276,133 6,576,667 30,852,800 24,803,705 3,028,595 622,500 40,000 333,000 2,025,000 30,852,800 (a) The court administrator shall submit to the house and senate committees on appropriations and judiciary, no later than January 1, 2006, a plan and budget for the staffing and provision of court security services throughout the state. The plan and budget should be based on the recommendations of the Supreme Court’s “Court Security Advisory Committee.” (b) The establishment of two (2) new exempt positions – one (1) Judicial Bureau Docket Clerk and one (1) Guardian ad Litem Volunteer Coordinator – is authorized in fiscal year 2006. (c) The court administrator shall develop a preliminary plan of implementation of a comprehensive strategy for the management of all public records of all courts, including proposed, phased time lines for the implementation, by January 1, 2006. The management strategy will be based on actual retrieval histories and applicable statutory mandates. SATURDAY, JUNE 4, 2005 1399 (d) The court administrator shall report to the house and senate committees on government operations and appropriations on the records storage reduction initiative on or before January 15, 2006, and recommend any statutory changes that will reduce the amount of records maintained and stored by state agencies. Sec. 96a. 12 V.S.A. § 5540a is amended to read § 5540a. JURISDICTION OVER SMALL CLAIMS; ASSISTANT JUDGES; ADDISON, BENNINGTON, CHITTENDEN, FRANKLIN, GRAND ISLE, LAMOILLE, ORANGE, ORLEANS, WASHINGTON, WINDHAM AND WINDSOR COUNTIES *** (e) This section shall be repealed effective on July 1, 2005 2008. Sec. 96b. CASH ADVANCES; COUNTY CLERKS (a) Notwithstanding the provisions of 32 V.S.A §§ 469 and 470, cash advances to county clerks shall be administered in the same manner as advances for district courts under the provisions of 32 V.S.A § 466. Sec. 97. 10 V.S.A. § 6618(b) is amended to read: (b) The secretary may authorize disbursements from the solid waste management assistance account for the purpose of enhancing solid waste management in the state in accordance with the adopted waste management plan. This includes: *** (7) a portion of the costs of administering the waste facility panel established under subchapter 5 of chapter 151 of this title environmental court established under chapter 27 of Title 4. The amount of $120,000.00 per fiscal year shall be disbursed for this purpose; *** Sec. 98. Human rights commission Personal services Operating expenses Total Source of funds General fund Federal funds Total 353,523 84,182 437,705 278,014 159,691 437,705 1400 JOURNAL OF THE SENATE Sec. 98a. 9 V.S.A. § 4553(a)(6)(D) is amended to read: (D) costs and reasonable attorney’s fees associated with the investigation and enforcement of actions; any such costs or fees recovered by the human rights commission under this chapter shall be deposited in the commission’s special fund and shall be available to the commission to offset the costs of providing legal services; Sec. 98b. 9 V.S.A. § 4551(a) is amended to read: (a) The human rights commission is hereby established. It shall consist of five members to be appointed by the governor, with the advice and consent of the senate, who shall designate one member to be its chair. No more than three members shall be of the same political party. At least one member shall be of a racial minority. Sec. 99. Total protection to persons and property 219,880,467 Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Enterprise funds Interdepartmental transfer Total 78,248,797 28,038,314 51,738,826 619,768 50,101,089 3,908,080 7,225,593 219,880,467 Sec. 100. Human services - agency of human services - secretary's office Personal services Operating expenses Grants Total Source of funds General fund Tobacco fund Federal funds Interdepartmental transfer Total 3,746,236 1,245,070 7,633,936 12,625,242 4,507,196 1,375,845 5,742,201 1,000,000 12,625,242 (a) Notwithstanding any other provisions of law, workers employed by persons who receive assistance from the agency of human services to procure attendant, personal care, or respite services or who utilize a qualified intermediary service organization providing services on behalf of the state shall not be considered state employees, except for purposes of 21 V.S.A. chapter 17. SATURDAY, JUNE 4, 2005 1401 (b) Notwithstanding any other provisions of law, the state may provide workers' compensation coverage to workers employed by persons who receive assistance from the agency of human services to procure attendant, personal care, or respite services, and the state shall not be considered their employer. The state may also either permit a qualified intermediary service organization to purchase group insurance policies for persons served by their organization, or deem such persons to be members of an association and eligible for selfinsurance under 21 V.S.A. § 687a for purposes of providing workers' compensation. This provision is intended solely to reduce costs of providing workers' compensation and shall not be considered for any other purpose. (c) Notwithstanding 32 V.S.A. § 706, the secretary may transfer funds allocated for the “high risk pool” and costs related to juvenile justice as outlined in this section as well as the substance-abuse-related allocations in subsection (i) outlined in this section to the departments in the agency of human services designated to provide these services. (d) Of the above tobacco settlement funds, $49,000 shall be used to provide a grant to the project against violent encounters for a statewide program for substance abuse prevention and mentoring program for youth. (e) Of the above tobacco fund appropriation, $100,000 shall be used for a grant to Lamoille County people in partnership for wrap-around services for atrisk youth. (f) Of the above tobacco fund appropriation, $100,000 with any corresponding federal matching funds shall be for comprehensive treatment services and $15,000 for safe housing provisions for at-risk youth. (g) Of the above general fund appropriation, $30,000 shall be granted to Prevent Child Abuse Vermont for a comprehensive health education and violence prevention curriculum for seventh and eighth grade students. (h) Of the above general fund appropriation, $8,000 shall be granted to the Vermont council of girl scouts, of which $5,000 shall be used to support a girl scout special project to assist girls with incarcerated mothers and $3,000 shall be used to support a school vacation program. (i) Of the above appropriation, a total of $4,004,547 consisting of $1,838,720 in general funds, $811,845 in tobacco funds, and $1,353,973 in federal funds shall be used for the comprehensive substance abuse prevention and treatment component of the drug education treatment enforcement and rehabilitation program (DETER). (1) The amount of $1,440,660, of which $619,677 is from general funds and $141,682 is tobacco funds, shall be used to support the outpatient 1402 JOURNAL OF THE SENATE treatment, case management, and drug court component of the program. Of the general and tobacco funds, $189,831 shall be allocated to the Rutland County drug court and shall be reserved to provide appropriate drug testing, case management, and other outpatient and inpatient treatment consistent with the design of the Rutland County drug court. These are the state funds the agency of human services shall use as match for year 2 federal funds from the 2003 Department of Justice drug court implementation grant award. (2) The amount of $439,316, of which $202,808 is from general funds and $141,120 is from tobacco funds, shall be used to fund student assistance counselors. (3) The amount of $599,067, of which $518,010 is from general funds and $45,000 is from tobacco funds, shall be used for residential treatment programs, including transitional halfway house programs, including the serenity house program. (4) The amount of $345,000, of which $95,000 is from general funds and $250,000 is from tobacco funds, shall be used for recovery centers as follows: (A) $240,000 shall be distributed to recovery centers in Springfield, St. Johnsbury, Rutland, Burlington, Bennington, and Barre in the amounts of at least $35,000, but not more than $40,000, per fiscal year to each center; (B) $25,000 to the recovery center in White River Junction; (C) $80,000 to the department of health for grants to two new recovery centers and for development of and assistance to recovery centers, and programming and evaluation of recovery centers. (5) The department of health shall be advised by an executive council of Vermont’s recovery center network on an ongoing basis to prioritize service needs, to assist with the review of recovery center funding proposals, and to provide recommendations for disbursement of funds to the recovery centers. This executive council will consist of the director of the upper valley substance abuse foundation, a representative from the department of health, the director of FOR-VT, and four members elected by the recovery leadership network, which is comprised of a representative from each of the recovery centers. (6) The amount of $1,180,504, of which $403,255 is from general funds and $234,022 is from tobacco funds, shall be used for opiate treatment programs, including buprenorphine and methadone and treatment for pregnant and postpartum women. SATURDAY, JUNE 4, 2005 1403 (j) Of the above tobacco fund appropriation, $200,000 along with available matching federal funds shall be available for services required for petitions filed by the agency under 33 V.S.A. § 5517(e). (k) The agency of human services shall report to the joint fiscal committee prior to January 1, 2006 on all existing information and referral lines across the agency and the lines that they propose to consolidate with the 2-1-1 program. The report shall also include an update on the status of the 2-1-1 information line. (l) The secretary of the agency shall implement master contracts with community providers as described in the agency of human services strategic plan dated February 2005, as soon as administratively feasible for the agency and the providers. (1) The secretary shall consult with all agency of human services commissioners and the commissioner of education to coordinate master contracts. (2) The secretary of human services shall ensure that the funds allocated in the department budgets for programs provided by the Lund Family Center can be transferred across programs of the Lund Family Center and may modify definitions and program criteria as necessary to allow the transfer. (m) The administration and the Vermont council of developmental and mental health services have agreed that in state fiscal years 2007 and 2008, a 7.5 percent state funding increase will be recommended for the designated agencies. The agency of human services and Vermont council of developmental and mental health services will work collaboratively with consumers, families, and advocates to make a recommendation in each fiscal year as to how this increase will be allocated. (n) Of the above general fund appropriation, $30,000 plus available matching federal funds shall be granted to Vermont legal aid for the purpose of providing cost of living increases to staff. Sec. 101. Rate setting Personal services Operating expenses Total Source of funds Interdepartmental transfer 632,040 92,395 724,435 724,435 Sec. 102. Human services board Personal services 278,443 1404 JOURNAL OF THE SENATE Operating expenses Total Source of funds General fund Federal funds Interdepartmental transfer Total 40,298 318,741 129,693 134,679 54,369 318,741 Sec. 103. Developmental disabilities council Personal services Operating expenses Grants Total Source of funds Federal funds 110,310 27,237 350,838 488,385 488,385 Sec. 104. Office of Vermont health access – administration Personal services Operating expenses Total Source of funds Special funds Federal funds Total 27,263,444 681,014 27,944,458 13,585,633 14,358,825 27,944,458 (a) The office shall transfer $100,000 of the above special fund appropriation to the department for children and families for the purpose of hiring additional quality assurance staff to review eligibility for long-term care services in the Medicaid program. (b) With the approval of the secretary of administration and the secretary of human services, the office of Vermont health access is authorized to identify and convert two (2) classified positions to two (2) exempt positions and create one (1) new exempt position. (c) Of the above special fund appropriation, $1,500,000 is to be used for increased administration expenses for actuarial needs required by the federal government, increased cost associated with conversion of existing pharmacy to wrap around services of the Medicare Part D benefit and for direct support of the coverage and services management and for global clinical record systems. These funds shall be matched with federal funds. The office may add at least ten (10) new positions which shall be transferred and converted from vacant positions in the executive branch of state government. SATURDAY, JUNE 4, 2005 1405 (d) If the office of Vermont health access has insufficient funds to meet the outreach efforts required by the plan developed under Sec. 316(c) of this act regarding the implementation of Medicare part D, the office may seek authorization from the emergency board to expend additional funds necessary to ensure that the outreach plan provides meaningful and sufficient information to Vermonters. Sec. 104a. Office of Vermont health access – Medicaid program Grants Source of funds Special funds Federal funds Total 589,599,773 243,284,425 346,315,348 589,599,773 (a) The office of Vermont health access shall implement the following provisions relating to provider payments from the appropriations in this section. (1) The office of Vermont health access shall reduce base Medicaid spending for hospital services by $16,500,000. In fiscal year 2006, the reduction in spending may be accomplished through a reduction in hospital reimbursement, an offset with payments from the hospitals made to the office in anticipation of the final settlement of outpatient costs for prior years, or a combination of both. The offset shall be the payment amount above the anticipated settlement of $1,900,000, which the office has already included in its fiscal year 2006 outpatient projection, but the offset shall not offset spending reductions by more than $5,000,000. Payments by hospitals shall be considered provisional and shall be adjusted as necessary based on final outpatient cost settlements. In fiscal year 2006, Vermont hospitals shall be allowed to increase charges to the extent necessary to offset the reduction in reimbursement that results from this section. (2) Home health agency fees shall be reduced by $500,000. (3) Dentists’ fees shall be amended, and other strategies, including a reduction to the cap on adult services, may be employed to reduce spending by $243,309. To the extent possible, the reduction shall be targeted to health services received by adults to minimize the impact on dental services for children. (4) The amount of $2,400,000 in reductions shall be made in reimbursement rates to providers who use Current Procedural Technology (CPT) codes, but shall be implemented to minimize the impact on primary care services. 1406 JOURNAL OF THE SENATE Sec. 104b. FUND APPROPRIATION AND TRANSFER (a) The sum of $78,104,989 is appropriated and transferred from the general fund to the health access trust fund in fiscal year 2006. (b) The sum of $17,250,000 is appropriated and transferred from the tobacco litigation settlement fund to the health access trust fund in fiscal year 2006. Sec. 104c. REPORT OTHER MEDICAID APPROPRIATIONS; TRANSFER; (a) In addition to the appropriations in this act, all other appropriations of state, federal, and special fund amounts for Medicaid programs and purposes made in the fiscal year 2006 general appropriations act, or any other act appropriating funds in fiscal year 2006, shall be transferred to the health access trust fund established by section 1972 of Title 33 for use in fiscal year 2006 by the agency of human services for purposes of the trust fund. The agency shall submit reports on any transfers made in accordance with this section to the joint fiscal committee on July 1, September 1, and November 1 for committee review and consideration at its July, September, and November 2005 committee meetings. Sec. 105. Health - administration and support Personal services Operating expenses Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 5,606,480 1,477,930 7,084,410 1,864,184 1,701 5,214,525 4,000 7,084,410 Sec. 106. Health - health protection Personal services Operating expenses Grants Total Source of funds General fund Special funds 3,561,696 680,062 1,574,400 5,816,158 1,165,201 942,000 SATURDAY, JUNE 4, 2005 Federal funds Interdepartmental transfer Total 1407 3,321,732 387,225 5,816,158 Sec. 107. Health - health surveillance Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Permanent trust funds Interdepartmental transfer Total 7,258,188 1,900,115 2,461,560 11,619,863 3,562,198 1,254,750 6,672,515 10,000 120,400 11,619,863 (a) The amount of $250,000 of the above general fund appropriation and at least $50,000 of the above federal fund appropriation shall be appropriated to the Vermont AIDS service organizations for client-based support services. The grants in this section shall be awarded equitably on a per-client basis and shall be used for services. No more than 15 percent may be used for the administration of such services by the Vermont AIDS service organizations. The method by which AIDS service organizations’ clients are counted shall be determined by mutual agreement of the department of health, the AIDS service organizations, and the HIV/AIDS service advisory council (HASAC). The department of health AIDS program shall be guided and advised by HASAC on an ongoing basis in prioritizing service needs in the disbursement of these funds. The department of health AIDS program shall meet at least quarterly with HASAC and shall provide HASAC with current information and data relating to service initiatives. (b) The amount of $175,000 of the above general fund appropriation shall be used for all aspects of the HIV/AIDS medication assistance program (AMAP), including costs of prescribed medications, related laboratory testing, nutritional supplements, and maximum cost-effectiveness for the program. Any remaining AMAP general funds at the end of the fiscal year shall be equitably distributed to Vermont AIDS service organizations as provided for under subsection (a) of this section. (c) The amount of $100,000 of the above general fund appropriation shall be appropriated to the Vermont AIDS service organizations and other Vermont HIV/AIDS prevention providers for community-based HIV 1408 JOURNAL OF THE SENATE prevention programming which are currently not supported by federal funds due to federal restrictions. These funds shall be used for HIV/AIDS prevention purposes, including, but not limited to, improving the availability of confidential and anonymous HIV testing; prevention work with at-risk groups such as women, intravenous drug users, and people of color; anti-stigma campaigns; and promotion of needle exchange programs. No more than 10 percent of the funds may be used for the administration of such services by the recipients of these funds. The method by which these prevention funds shall be distributed shall be determined by mutual agreement of the department of health, AIDS service organizations, the HIV/AIDS Service Advisory Committee (HASAC), and the Community Planning Group (CPG). The department of health AIDS program shall be guided and advised by HASAC and CPG on an ongoing basis in prioritizing prevention service needs in the disbursement of these funds. (d) The secretary of human services shall immediately notify the joint fiscal committee if, at any time, there are insufficient funds in AMAP to assist all eligible individuals. The secretary shall work in cooperation with persons living with HIV/AIDS to develop a plan to continue access to AMAP medications until such time as the general assembly can take action. (e) The secretary of human services shall work in conjunction with the AMAP advisory committee, which shall be comprised of no less than 50 percent of members who are living with HIV/AIDS. The committee shall make recommendations regarding the program’s formulary of approved medication, related laboratory testing, nutritional supplements, and eligibility for the program. Sec. 108. Health - health improvement Personal services Operating expenses Grants Total Source of funds General fund Special funds Tobacco fund Federal funds Interdepartmental transfer Total 8,355,130 1,155,320 9,362,086 18,872,536 3,545,034 733,502 3,481,423 11,105,577 7,000 18,872,536 (a) The department of health may carry forward any unspent portion of funds designated for health professional loan repayment. These funds may be used either alone or to match federal National Health Service Corps loan SATURDAY, JUNE 4, 2005 1409 repayment funds, local funds, or private funds, and shall be made available to primary care providers, dentists, licensed nurses, and dental hygienists who agree to practice for a prescribed period of time in the state or at an accredited hospital within 10 miles of the Vermont border, serving a portion of the state designated as a health professional shortage population, or other rural or underserved areas. Educational scholarships, loan repayment grants, loan deferment payments, and payments of taxes due on the award may be considered for payment. (b) The above tobacco fund appropriation in this section shall be utilized according to the provisions of 18 V.S.A. chapter 225 as follows: (1) community-based programs - $1,023,624; (2) media and public education - $1,007,799; (3) tobacco cessation programs - $1,130,000; these funds may also be used to provide tobacco cessation counseling services to persons incarcerated in Vermont correctional facilities, and $80,000 shall be used to make nicotine replacement therapies available to all persons enrolled in tobacco cessation counseling; (4) surveillance and evaluation activities - $320,000. Sec. 109. 18 V.S.A. § 10 is amended to read: § 10. EDUCATIONAL ASSISTANCE; INCENTIVES; NURSES *** (f) This section shall be repealed effective June 30, 2005. Sec. 110. Health - community public health Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 11,727,467 1,620,114 11,782,520 25,130,101 4,138,477 477,110 20,362,014 152,500 25,130,101 Sec. 111. Health - alcohol and drug abuse programs Personal services Operating expenses 2,391,227 836,119 1410 JOURNAL OF THE SENATE Grants Total Source of funds General fund Special funds Tobacco fund Federal funds Interdepartmental transfer Total 18,725,833 21,953,179 5,772,374 157,000 3,171,266 12,394,539 458,000 21,953,179 (a) For the purpose of meeting the need for outpatient substance abuse services when the preferred provider system has a waiting list of five days or more or there is a lack of qualified clinicians to provide services in a region of the state, a state-qualified alcohol and drug abuse counselor may apply to the department of health, division of alcohol and drug abuse programs, for timelimited authorization to participate as a Medicaid provider to deliver clinical and case coordination services, as authorized. (b)(1) In accordance with federal law, the division of alcohol and drug abuse programs may use the following interim criteria to determine whether to enroll a state-supported Medicaid and uninsured population substance abuse program in the division’s network of designated providers, as described in the state plan: (A) The program has the ability to provide the quality, quantity, and levels of care required under the division’s standards, licensure standards, and accreditation standards established by the commission of accreditation of rehabilitation facilities, the joint commission on accreditation of health care organizations, or the commission on accreditation for family services. (B) Any program that is currently being funded in the existing network shall continue to be a designated program until further standards are developed, provided the standards identified in subdivision (1) of this subsection are satisfied. (C) agreements. All programs shall continue to fulfill grant or contract (2) The provisions of subdivision (1) of this subsection shall not preclude the division’s “request for bids” process. (c) Of the above interdepartmental transfer, $130,000 shall be used to support the gambling addiction program, $90,000 of which will be used to support the existing program. Prior to expending the additional $40,000 of this allocation, the department shall develop a comprehensive gambling addiction services plan that identifies the need for services, states the goals to be SATURDAY, JUNE 4, 2005 1411 achieved by the gambling addiction program, and outlines the use of these funds and future appropriations to achieve these goals. The plan shall be submitted to the general assembly by January 15, 2006. (d) Of the funds appropriated above and in Sec. 100 of this act, $110,000 shall be used for drug court programs in Bennington, Chittenden, and Rutland counties. The sum of $35,000 is allocated for Chittenden to be used for court coordination. The sum of $25,000 is allocated for Rutland to be used for treatment, case management, court coordination, and screening services as needed. The sum of $25,000 is allocated for Bennington for court coordination, and an additional $25,000 is allocated for Bennington to be used for case management, treatment, and screening services as needed. (e) Of the above general fund appropriation, $35,000 shall be used to increase the daily rate to $20.00 for substance abuse halfway house services, including the Grace House program. (f) The office of alcohol and drug abuse programs shall report to the general assembly by January 15, 2006 on the fiscal status of all residential substance abuse programs supported by state appropriations. This report shall include the types of services provided, the cost of providing these services, and the sources of funds available at each of the respective residential programs. Sec. 112. Health - mental health Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 3,404,696 507,616 106,674,609 110,586,921 44,492,587 6,945,611 55,125,950 4,022,773 110,586,921 (a) Of the above appropriation, $40,000 shall be used to maintain the Burlington downtown outreach program to develop a model program for expansion to other areas of the state. Sec. 113. Health - Vermont state hospital Personal services Operating expenses Grants Total 16,580,497 1,813,522 3,000 18,397,019 1412 JOURNAL OF THE SENATE Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 2,417,915 110,000 572,426 15,296,678 18,397,019 Sec. 113a. 13 V.S.A. § 4815(b) is amended to read: (b) The order for examination may provide for an examination at any jail, or correctional center, or at the state hospital designated by the commissioner of health for forensic examinations pursuant to chapter 177 of Title 18, or at such other place as the court shall determine, after hearing a recommendation by the commissioner of developmental and mental health services. Sec. 113b. 13 V.S.A. § 4815(g) is amended to read: (g)(1) Examination Inpatient examination at the state hospital or a designated hospital. Before ordering the examination to take place at the state hospital, the court must determine that the state hospital is the least restrictive setting in which the examination may appropriately be conducted The court shall not order an inpatient examination unless the designated mental health professional determines that the defendant is a person in need of treatment as defined in 18 V.S.A. § 7101(17). (2) Before ordering the inpatient examination to take place at the state hospital, the court shall also determine what terms, if any, shall govern the defendant's release from custody under sections 7553-7554 of this title once the examination has been completed. (3) An order for inpatient examination at the state hospital shall provide for placement of the defendant in the custody and care of the commissioner of developmental and mental health services for not more than 30 days from the date of the order, and the defendant shall be returned to court for further appearance as soon as the examination has been completed, if ordered by the court. If a return to court is ordered, such return shall occur within 48 hours of the commissioner's request. The commissioner shall have the authority to determine the most clinically appropriate designated hospital for the examination and, based on the most clinically appropriate determination, may transfer the defendant between designated hospitals at any time while the order is in effect. (4) If a return to court is not ordered and the defendant is not in the custody of the commissioner of corrections, the defendant shall be returned to the defendant's residence or such other appropriate place within the state of SATURDAY, JUNE 4, 2005 1413 Vermont by the department of developmental and mental health services at the expense of the court. (5) If it appears that an inpatient examination at the state hospital cannot reasonably be completed within 30 days, the court issuing the original order, on request of the commissioner and upon good cause shown may order placement at the state hospital extended for additional periods of 15 days in order to complete the examination, and the defendant on the expiration of the period provided for in such order shall be returned in accordance with this subsection. (6) Persons committed to the state hospital care and custody of the commissioner for purposes of examination or examined elsewhere under this section shall be given medical care and treatment in accordance with accepted standards of medical care and practice, to the extent facilities and personnel are available for this purpose. Sec. 113c. SUNSET (a) The amendments in Secs. 113a and 113b shall terminate on July 1, 2006 and 13 V.S.A. § 4815(b) and (g) shall revert to the prior statutory text. Sec. 113d. STUDY COMMITTEE (a) The commissioner of health shall convene a work group to address issues relating to forensic mental health patients and defendants. The work group shall consist of the commissioner or designee, the defender general or designee, the court administrator or designee, a representative from the mental health law project of Vermont legal aid, the department of sheriffs and states attorneys, the Vermont association of hospitals and health systems, a representative of the Vermont Council on Developmental and Mental Health Services, the Vermont state employees’ association, and a designee of Vermont Psychiatric Survivors. The department of health shall provide administrative support to the work group. (b) The work group shall report to the house committee on human services and the senate committee on health and welfare no later than January 31, 2006 and shall address the following issues: (1) transfers between hospitals, including standards, procedures, and rights of patients; (2) determination of the least restrictive setting for the forensic evaluation; (3) disposition of the defendant if it is determined after admission that the defendant does not meet the standards for hospitalization; 1414 JOURNAL OF THE SENATE (4) legal representation of defendants and the state in hospitalization hearings; and (5) other issues as determined by the work group. Sec. 113e. VERMONT STATE HOSPITAL; REPLACEMENT PLAN (a) The general assembly adopts the principles in the May 31, 2005 draft report from the department of health for restructuring the delivery of mental health services currently received in the Vermont state hospital, including the following: (1) The current state hospital facility should be replaced with a facility or facilities with fewer than 54 beds and with meaningful programmatic integration of medical and community mental health services. (2) As the replacement occurs, the operations and human resources in the state hospital should be supported and enhanced to ensure safety, and the clinical programming should effectively support recovery. (3) The capacity and network of community support services should be expanded to meet patient needs in a clinically appropriate manner consistent with system values. (b) When the general assembly is not in session, the department of health shall seek and receive approval from the mental health oversight committee on specific programmatic recommendations, plans, or implementation steps to achieve the principles in the May 31, 2005 draft report prior to implementation. The mental health oversight committee shall approve or deny the recommendations and steps within two weeks of submission and shall oversee the implementation of the restructuring of the delivery of mental health services currently received in the Vermont state hospital. (c) The commissioner of health shall report to the mental health oversight committee upon request in order to meet the requirements of this section. Sec. 114. HUMAN SERVICES CASELOAD RESERVE TRANSFER/LOAN (a) From the human services caseload reserve, $1,300,000 shall be transferred to the general fund to offset caseload and transition expenditures for services at the Vermont state hospital. The secretary of administration and the secretary of human services shall ensure that these funds are repaid to the caseload reserve on or before July 1, 2008. Sec. 115. Health - medical practice board Personal services Operating expenses Total 669,764 130,309 800,073 SATURDAY, JUNE 4, 2005 Source of funds Special funds 1415 800,073 Sec. 116. Department for children and families - administration & support services Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Total 26,563,475 5,025,540 1,414,675 33,003,690 13,926,443 1,401,422 17,675,825 33,003,690 Sec. 117. Department for children and families - office of child support Personal services Operating expenses Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 8,220,005 2,797,032 11,017,037 1,550,424 638,014 8,721,499 107,100 11,017,037 (a) Medical coverage is presumed to be available to a parent at a reasonable cost only if the amount payable for individual insurance or a health benefit plan premium is five percent (5%) or less of the parent’s gross income. The court, in its discretion, retains the right to order a parent to obtain health insurance coverage even if the cost exceeds five percent (5%) of the parent’s gross income if the cost is deemed reasonable under all the circumstances after considering the factors pursuant to 15 V.S.A. § 659. Sec. 118. Department for children and families - child development Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds 2,412,885 468,401 45,178,245 48,059,531 19,269,419 60,732 1,230,722 1416 JOURNAL OF THE SENATE Federal funds Interdepartmental transfer Total 27,272,906 225,752 48,059,531 (a) Of the above appropriation, $50,000 shall be granted to the Vermont center for the book. (b) The department for children and families in conjunction with the department of education shall track and report quarterly expenses and receipts for the family infant toddler program. (1) The first report shall include final expenses and receipts by source for fiscal year 2005 (through June 30, 2005) which shall be broken out by quarter and include enrollment data. (2) For fiscal year 2006, the quarterly reports shall include: (A) the number of enrolled children; (B) expenses; and (C) receipts by source, including federal part C dollars, Medicaid receipts, state general funds, and any other sources of funding. (3) The department for children and families shall submit these reports to the house and senate committees on appropriations, senate committee on health and welfare, and house committee on human services or to the joint health access oversight committee when the general assembly is not in session. (c) Of the above appropriation, $290,000 shall be used to increase the subsidy rate and $30,000 shall be used for incentives to increase child care quality. Sec. 119. Department for children and families - family services Personal services Operating expenses Grants Total Source of funds General fund Special funds Tobacco fund Federal funds Total 18,261,673 2,870,402 62,032,908 83,164,983 38,442,431 1,306,152 75,000 43,341,400 83,164,983 (a) Of the above general fund appropriation, $70,000 shall be used for a grant to the prevent child abuse Vermont program. SATURDAY, JUNE 4, 2005 1417 Sec. 120. Department for children and families - Woodside rehabilitation center Personal services Operating expenses Total Source of funds General fund Interdepartmental transfer Total 2,361,201 432,306 2,793,507 2,738,615 54,892 2,793,507 (a) Of the above appropriation, $5,000 shall be used to maintain the arts program. (b) The director of the Woodside rehabilitation center shall work with the commissioner of finance and management and the executive director of the state’s attorneys and sheriffs to identify if utilization of the sheriff’s office for transportation services could result in saved overtime costs at the center. Sec. 121. Department for children and families - disability determination services Personal services Operating expenses Total Source of funds Federal funds Interdepartmental transfer Total Sec. 122. disabled 3,337,193 495,020 3,832,213 3,587,068 245,145 3,832,213 Department for children and families - aid to aged, blind and Personal services Grants Total Source of funds General fund 1,365,966 9,336,901 10,702,867 10,702,867 Sec. 123. Department for children and families - general assistance Grants Source of funds General fund Special funds Federal funds Total 4,326,260 3,214,939 1 1,111,320 4,326,260 1418 JOURNAL OF THE SENATE (a) Of the above appropriation, $527,000 in federal TANF funds is allocated specifically for rental or mortgage arrearage assistance to families who demonstrate they are faced with a reasonably preventable loss of housing and who meet state requirements for category I assistance, as established by regulation. Assistance under this provision is not an entitlement and shall cease upon expenditure of these allocated funds. (b) Of the above appropriation, an amount not to exceed $150,000 ($75,000 federal TANF funds and $75,000 general funds) may be expended for temporary housing assistance to individuals and families that have reached the 28-day maximum allowed under department regulations and have a continued need for this type of emergency assistance. Assistance shall be limited to an additional 56 cumulative days beyond the current 28-day maximum. Assistance under this provision is not an entitlement and shall cease upon expenditure of these allocated funds. Sec. 124. Department for children and families - reach up Grants Source of funds General fund Special funds Federal funds Total 43,217,279 14,290,063 2,200,000 26,727,216 43,217,279 (a) If the governor’s fiscal year 2007 proposed budget includes a ratable reduction for reach up benefits that is below 50 percent, the department for children and families shall report to the house and senate committees on appropriations the cost of achieving a 50 percent ratable reduction. (b) Of the above appropriation, up to $55,810 is to be used for the Lund family center’s learning edge program to serve women who are pregnant and/or reach up eligible. Sec. 125. Department for children and families - home heating fuel assistance/LIHEAP Personal services Operating expenses Grants Total Source of funds Special funds 20,000 90,000 10,146,117 10,256,117 10,256,117 (a) Of the funds appropriated for home heating fuel assistance/LIHEAP in this act, no more than $350,000 shall be expended for crisis fuel direct service/administration exclusive of statewide after-hours’ crisis coverage. SATURDAY, JUNE 4, 2005 1419 Sec. 126. HOME HEATING FUEL ASSISTANCE/LIHEAP (a) All federal funds granted to the state for home heating fuel assistance under the Low Income Home Energy Assistance Program (LIHEAP) or other similar federal program in fiscal year 2006, and all unexpended LIHEAP funds granted to the state in fiscal year 2005, are hereby transferred to the home heating fuel assistance trust fund for the provision of home heating fuel assistance, including program administration, under 33 V.S.A. chapter 26. (b) For the purpose of a crisis set-aside, seasonal home heating fuel assistance through December 31, 2005, and program administration, the commissioner of finance and management shall transfer $2,550,000 from the home weatherization assistance trust fund to the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are not available. An equivalent amount shall be returned to the home weatherization trust fund from the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are received. Should a transfer of funds from the home weatherization assistance trust fund be necessary for the 2005-2006 crisis set-aside and seasonal home heating fuel assistance through December 31, 2005, and LIHEAP funds awarded as of December 31, 2005 for fiscal year 2006 do not exceed $2,550,000, subsequent payments under the home heating fuel assistance program shall not precede January 30, 2006. Notwithstanding any other provision of law, payments authorized by the office of home heating fuel assistance shall not exceed funds available, except that for fuel assistance payments made through December 31, 2005, the commissioner of finance and management may anticipate receipts into the home weatherization assistance trust fund. Sec. 127. Department for children and families - food stamp cash out Grants Source of funds Federal funds 6,141,229 6,141,229 Sec. 128. TANF EXEMPTION (a) The commissioner may exempt all individuals domiciled in the state of Vermont from the implementation of Sec. 115(a) of Public Law 104-193 through June 30, 2006. 1420 JOURNAL OF THE SENATE Sec. 129. Department for children and families - office of economic opportunity Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 261,733 89,517 5,035,390 5,386,640 890,147 80,012 4,165,408 251,073 5,386,640 (a) Of the above general fund appropriation, $485,000 shall be granted to community agencies for homeless assistance by preserving existing services or increasing resources available statewide. These funds may be granted alone or in conjunction with federal McKinney emergency shelter funds. Grant decisions shall be made with assistance from the coalition of homeless Vermonters. (b) Of the above general fund appropriation, $25,000 shall be granted to the Vermont campaign to end childhood hunger for food stamp outreach. Sec. 130. assistance Department for children and families - OEO - weatherization Personal services Operating expenses Grants Total Source of funds Special funds Federal funds Total 150,478 39,950 7,079,010 7,269,438 5,991,517 1,277,921 7,269,438 (a) Of the above special fund appropriation, $400,000 is for the replacement and repair of home heating equipment. Sec. 131. [Deleted] Sec. 132. Aging and independent living - administration and support Personal services Operating expenses Total Source of funds 20,691,990 3,450,004 24,141,994 SATURDAY, JUNE 4, 2005 General fund Special funds Federal funds Interdepartmental transfer Total 1421 8,005,169 823,719 14,045,169 1,267,937 24,141,994 (a) Notwithstanding Sec. 288(a)(8) of No. 122 of the Acts of 2004, the department of aging and independent living may use $400,000 of the funds appropriated in Sec. 288(a)(8) of No. 122 of the Acts of 2004 to address fiscal year 2005 long-term care waiver funding needs. The remaining $600,000 shall be used for community-based service infrastructure needs, including up to $70,000 for data system updates needed to implement the waiver. Sec. 133. Aging and independent living - advocacy and independent living Grants Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 20,577,895 9,162,065 422,692 851,981 10,064,157 77,000 20,577,895 Sec. 134. Aging and independent living - blind and visually impaired Grants Source of funds General fund Special funds Federal funds Total 1,359,000 564,064 145,000 649,936 1,359,000 Sec. 135. 21 V.S.A. § 504 is amended to read: § 504. INCOME FROM VENDING FACILITIES AND MACHINES (a) All net income from a vending facility on state property shall accrue to the blind or visually impaired person licensed to operate that facility. (b) All net income from vending machines not placed within vending facilities on state property shall accrue to the division. (c) Income which accrues to the division under this subchapter shall be used to: (1) maintain or enhance the vending facilities program; and 1422 JOURNAL OF THE SENATE (2) provide benefit programs, including, but not limited to, health insurance or pension plans for licensed blind or visually impaired persons who operate vending facilities; (3) provide vocational rehabilitation services for persons who are blind or visually impaired. Sec. 136. Aging and independent living - vocational rehabilitation Grants Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 5,402,643 1,599,195 40,000 3,564,061 199,387 5,402,643 Sec. 137. Aging and independent living - TBI home- and community-based waiver Grants Source of funds General fund Federal funds Total 2,749,010 1,129,843 1,619,167 2,749,010 Sec. 138. Aging and independent living - developmental services Grants Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 103,600,138 41,434,699 841,980 60,262,628 1,060,831 103,600,138 (a) The secretary of the agency of human services and the commissioner of the department of aging and independent living shall ensure the programs funded through this appropriation meet the following requirements: (1) A minimum of 219 individuals under emergency caseload and a minimum of 23 individuals under public safety shall be funded. (2) A minimum of 65 new “June graduates” shall be served. (3) The funding level available to the flexible family funding program shall be at least equal to the amount available to this program in fiscal year 2005, which was $1,086,890, including any federal match. If federal receipts SATURDAY, JUNE 4, 2005 1423 are gained through the Global Commitment, eligibility for flexible family funding will require eligibility for Medicaid; the department may make exceptions to this on a case-by-case basis. The anticipated waiting list for developmental services will be 31 or fewer, depending on the number of graduates who exit school. (b) The commissioner of finance and management, the secretary of human services, and the commissioner of aging and independent living shall report to the joint fiscal committee at its September and November meetings as to the fiscal and program implications of meeting the requirements of subsection (a) of this section. The report shall include a review of the fiscal year 2006 inflationary increase available to the designated provider agencies for developmental services and the impact on any other division or department with the agency. (c) The department of aging and independent living shall report quarterly applications and enrollments for developmental services, tracking the fiscal implications of the requirements of subsection (a) of this section, compliance in doing so, and remaining need. In particular, these reports will include: (1) The number of new individuals entering the developmental services system in 2006, the types of services needed, and the cost per person. (2) The expected annualization in fiscal year 2007, based upon services provided to date. (3) The number of individuals on the waiting list for flexible family funding. (4) The number of individuals who have requested and meet the basic requirements to qualify for services under the “Vermont state system of care plan for developmental services,” who have been denied services due to funding constraints (June graduates and others). (5) The department of aging and independent living shall submit these reports to the house and senate committees on appropriations, senate committee on health and welfare, and house committee on human services or to the joint health access oversight committee when the general assembly is not in session. Sec. 139. Corrections - administration Personal services Operating expenses Total Source of funds General fund 2,109,825 322,087 2,431,912 2,270,042 1424 JOURNAL OF THE SENATE Federal funds Interdepartmental transfer Total 65,000 96,870 2,431,912 (a) The department of corrections shall report to the joint corrections oversight committee at each of its meetings on the status of the health services contract. The report shall include expenditures made year-to-date and the department’s assessment of the quality of the services provided by the contractor. (b) The commissioner of the department of corrections shall research the viability of developing community mapping technologies in Vermont. The research shall include reviewing the system developed for Connecticut by the Council of State Governments. The commissioner shall report to the general assembly by January 15, 2006 on the cost, applicability to Vermont, and potential efficiency of assigning community supervision resources as well as other community-based human services resources based on a community resource mapping system. Sec. 140. Corrections - parole board Personal services Operating expenses Total Source of funds General fund 232,722 65,555 298,277 298,277 Sec. 141. Corrections - correctional education Personal services Operating expenses Total Source of funds General fund Interdepartmental transfer Total 3,164,224 343,662 3,507,886 3,110,736 397,150 3,507,886 (a) The general assembly finds that the state of Vermont funding level for special education services in the department of corrections meets special education requirements. Vermont will add additional resources to corrections special education pursuant to the federal government funding special education at the level required by federal law. Sec. 142. Corrections - correctional services Personal services Operating expenses 68,370,252 30,657,454 SATURDAY, JUNE 4, 2005 Grants Total Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Interdepartmental transfer Total 1425 2,054,500 101,082,206 97,380,792 1,153,658 549,500 87,500 1,829,710 81,046 101,082,206 (a) Of the above general fund appropriation, $87,000 shall be used as a grant to Dismas House of Vermont, Inc. (b) Of the above appropriation for transitional housing, the amount of $35,000 shall be granted to Morningside House, Inc. which serves homeless citizens in southern Vermont. The funds shall support a pilot project between the department and Morningside House, Inc. jointly to develop and implement a plan to house between three and five offenders referred by the department to the shelter. (c) Of the above appropriation $20,000 shall be used for an employment placement and retention program expansion in Bennington County for individuals reentering the community under the supervision of the department. (d) The establishment of seven (7) new classified community supervision and support positions – four (4) caseworkers, two (2) community corrections officers, and one (1) administrative position – is authorized as of October 1, 2005, contingent upon the out-of-state bed census being, on average, at or below 400 during the months of May, June, and July, excluding the impact of the renovations at the St. Albans correctional facility. These positions shall be transferred and converted from existing vacant positions in the executive branch of state government. Of the above appropriation, $318,750 shall be used to support these new positions. (e) All other funds associated with a reduction of 45 out-of-state beds from the total included in the submitted budget in this appropriation shall be used for correctional services needs as directed by the commissioner of corrections which may include hiring up to four (4) mental health counselors. Sec. 142a. INTENT FOR FUNDS FROM ADDITIONAL OUT-OF-STATE BED SAVINGS (a) To the extent the number of out-of-state beds funded in Sec. 142 of this act falls from the budgeted level of 399, the savings of allocated funds associated with the first 50 out-of-state bed reduction shall be used first to fund 1426 JOURNAL OF THE SENATE five (5) new community supervision positions: three (3) caseworkers and two (2) community corrections officers, and the remaining funds shall be used for corrections services. (b) For every additional increment of 50 beds that the out-of-state bed need is reduced, the savings associated with the reduction shall be used equally to fund additional community supports or supervision and other correctional services needs which may include hiring up to four (4) mental health counselors if they were not hired pursuant to Sec. 142(e) of this act. Sec. 143. DEPARTMENT OF CORRECTIONS; OVERCROWDING (a) It is the intent of the general assembly that the department of corrections should not operate any of the state correctional facilities at a level that exceeds the rated capacity of the facility. (b) The commissioner of corrections shall determine the rated capacity of each correctional facility to include only bed space designated for the general population and shall not include bed space used for segregation, isolation, or medical or mental health treatment, or high security bed space used for disciplinary or administrative purposes. (c) When the population housed in any facility exceeds the rated capacity of that facility, the commissioner of corrections may transfer appropriate offenders to another facility, including contracted facilities in another state; provided, however, that the commissioner shall strive to minimize transfers in order to avoid disruption of inmate programming. (d) It is also the intent of the general assembly that if the total population housed in Vermont exceeds the rated capacity of the Vermont facilities, this excess shall be limited to 50 beds, and that these 50 beds shall be proportionately distributed throughout the Vermont facilities. (e) On a quarterly basis, the commissioner shall report to the joint legislative corrections oversight committee setting forth the number of inmates housed in each correctional facility for the previous three-month period and providing detailed information of the dates and length of time any facility exceeded 105 percent of its rated capacity. Sec. 143a. STUDY; WOMEN OFFENDERS; SUBSTANCE ABUSE (a) There is created a committee to explore recommendations relating to women offenders contained in the August 19, 2004 report of the governor’s commission on corrections overcrowding. The committee’s work shall include consideration of community-based alternatives to incarceration for women offenders and options for treating nonviolent women who are incarcerated primarily for substance-abuse-related reasons. After reviewing and evaluating SATURDAY, JUNE 4, 2005 1427 successful models in other states, the committee shall develop a proposal for one or more pilot programs addressing the needs of women offenders. (b) On or before January 15, 2006, the committee shall report to the senate committee on health and welfare, the house committee on human services, and the house and senate committees on appropriations, institutions, and judiciary regarding its research and recommendations under this section, including associated costs and the anticipated nonstate sources of funding for the proposed pilot program or programs. (c) Members of the committee shall include: (1) The commissioner of corrections, or the commissioner’s designee. (2) The defender general or the defender general’s designee. (3) The adult community mental health program director, division of mental health, department of health, agency of human services, or the director’s designee. (4) The deputy commissioner for the division of alcohol and drug abuse programs, department of health, agency of human services, or the deputy commissioner’s designee. (5) The administrative judge for trial courts or the judge’s designee. (6) The coordinator of offender services for the Howard Center for Human Services at the Chittenden County drug court or the coordinator’s designee. (7) A substance abuse provider offering services to women at the Dale correctional facility, to be selected by the commissioner of corrections. (8) The coordinator of the community justice center in Burlington or the coordinator’s designee. (9) One additional member may be selected by the committee based upon experience working with women offenders, women with substance abuse issues, or other women in crisis. One additional member who represents female former offenders, may be selected by the commissioner of corrections. Sec. 144. Corrections - correctional facilities- recreation Personal services Operating expenses Total Source of funds Special funds 518,212 473,986 992,198 992,198 1428 JOURNAL OF THE SENATE (a) The department shall study and implement either a prepaid phone card system for inmates’ telephone service or another system that reduces inmates’ telephone costs during fiscal year 2007. The department shall report to the general assembly on the fiscal impact of this change on the inmate recreation fund. Sec. 145. 28 V.S.A. § 816 is amended to read: § 816. INMATE RECREATION FUND The department shall accept monies generated by commissions on telephone services, commissary sales, and sales of vended items at its correctional facilities and shall establish with such monies an inmate recreation special fund. The fund shall be used to provide postage to inmates in a manner consistent with department policy. The fund may be used for costs associated with the oversight and accounting of inmate cash accounts. The fund may be used, at the discretion of the commissioner, to hire persons or purchase services, equipment, and goods to establish or enhance recreation activities for inmates confined in any of the department’s facilities, and for voluntary inmate contributions that promote the restoration of crime victims or communities. The inmates, through a process established by the inmate recreation fund committee, may also choose to create a loan fund, the operation of which shall be governed by rules adopted pursuant to chapter 25 of Title 3, from which offenders may borrow in order to help them obtain housing upon release from incarceration. Sec. 146. Corrections - Vermont offender work program Personal services Operating expenses Total Source of funds Internal service funds 1,391,272 1,731,740 3,123,012 3,123,012 Sec. 147. Department for children and families - children’s trust fund Grant Source of funds General fund Special funds Federal funds Total 340,891 100,651 70,000 170,240 340,891 (a) Of the above amount, at least 65 percent will be awarded for community-based program activities for the broad range of child abuse and neglect prevention activities. SATURDAY, JUNE 4, 2005 1429 Sec. 147a. Sec. 159 of No. 122 of the Acts of 2004 is amended to read: Sec. 159. Children’s trust fund Department for children and families children’s trust fund Grant Source of funds General fund Special funds Federal funds Total 310,651 100,651 70,000 140,000 310,651 *** Sec. 148. Commission on women Personal services Operating expenses Total Source of funds General fund Special funds Total 194,319 61,102 255,421 250,421 5,000 255,421 Sec. 149. Retired senior volunteer program Grants Source of funds General fund 131,096 131,096 Sec. 150. Vermont veterans’ home - care and support services Personal services Operating expenses Total Source of funds General fund Special funds Federal funds Total 12,833,472 3,128,718 15,962,190 912,495 10,239,126 4,810,569 15,962,190 (a) Notwithstanding 32 V.S.A. § 706(a)(1), the Vermont veterans’ home may transfer, with the approval of the secretary of administration, funds up to an amount equal to the general fund appropriation, to the health access trust fund for purposes of facilitating a Medicaid rate adjustment. (b) Notwithstanding 32 V.S.A. § 706(a)(1), the Vermont veterans’ home may transfer to the agency of human services’ secretary’s office, with the 1430 JOURNAL OF THE SENATE approval of the secretary of administration, funds to cover the costs of the contract for an interim administrator of the veterans’ home. Sec. 150a. VERMONT VETERANS’ HOME; REGIONAL BED CAPACITY (a) The agency of human services shall not include the bed count at the Vermont veterans’ home when recommending and implementing policies that are based on or intended to impact regional nursing home bed capacity in the state. Sec. 151. Total human services Source of funds General fund Transportation fund Special funds Tobacco fund Federal funds Permanent trust funds Internal service funds Interdepartmental transfer Total 1,502,442,843 421,074,741 1,637,082 305,954,266 25,441,034 718,911,145 10,000 3,123,012 26,291,563 1,502,442,843 Sec. 152. Employment and training Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total Sec. 153. Total employment and training Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 18,317,440 4,568,929 1,615,210 24,501,579 1,395,248 866,000 19,472,969 2,767,362 24,501,579 24,501,579 1,395,248 866,000 19,472,969 2,767,362 24,501,579 SATURDAY, JUNE 4, 2005 1431 Sec. 154. Education - finance and administration Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 4,533,633 1,377,940 10,620,000 16,531,573 3,166,006 63,697 1,968,752 11,333,118 16,531,573 (a) Notwithstanding 16 V.S.A. §§ 563(21) and 3448(a)(5)(E), of the above appropriation, up to $17,000 is available for a grant to Bradford school district to make up for delays in making a final school construction payment after completion of the final audit in fiscal year 2006. Sec. 154a. Sec. 166 of No. 122 of the Acts of 2004, as amended by Sec. 52 of No. 6 of the Acts of 2005, is further amended to read: Sec. 166. Education – finance and administration Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 4,029,861 4,029,861 1,273,159 1,273,159 11,216,066 11,816,066 16,519,086 17,119,086 3,045,720 20,088 2,213,164 11,240,114 16,519,086 3,045,720 20,088 2,213,164 11,840,114 17,119,086 Sec. 155. Education - education programs Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds 12,107,019 1,981,112 108,322,608 122,410,739 7,132,600 524,846 1,139,188 1432 JOURNAL OF THE SENATE Federal funds Interdepartmental transfer Total 112,461,461 1,152,644 122,410,739 Sec. 156. Education - technical education Grants Source of funds Education fund 9,836,396 9,836,396 (a) The appropriation in this section shall be authorized, notwithstanding 16 V.S.A § 1564. Sec. 157. Education - special education: formula grants Grants Source of funds Education fund 116,120,000 116,120,000 (a) Of the appropriation authorized in this section, and notwithstanding any other provision of law, an amount not to exceed $3,001,131 shall be used by the department of education in fiscal year 2006 as funding for 16 V.S.A. § 2967(b)(2)-(6). In addition to funding for 16 V.S.A. § 2967(b)(2)-(6), up to $153,720 may be used by the department of education for its participation in the higher education partnership plan. Sec. 158. Education - state-placed students Grants Source of funds Education fund 12,500,000 12,500,000 (a) The Independence Place program of the Lund family center shall be considered a 24-hour residential program for the purposes of reimbursement of education costs. Sec. 159. Education - adult education and literacy Grants Source of funds General fund Federal funds Education fund Total 3,951,017 2,717,398 983,619 250,000 3,951,017 SATURDAY, JUNE 4, 2005 1433 Sec. 160. HIGH SCHOOL COMPLETION; ADVISORY COMMITTEE; ADULT EDUCATION AND LITERACY; REPORT (a) A high school completion advisory committee is hereby created. The committee shall consist of a representative chosen by the speaker, a senator chosen by the committee on committees, a representative of Vermont adult learning chosen by the board of directors of Vermont Learning, Inc., a representative of the Vermont school boards association chosen by the association’s board of directors, a principal chosen by the Vermont principals’ association, a superintendent chosen by the Vermont superintendents association, and the commissioner of education or designee. The legislative council and joint fiscal office shall provide staff services to the committee. Members shall be entitled to per diem compensation and expenses. The legislative members shall be responsible for convening the committee. (b) The committee shall develop a recommended mechanism and procedure by which funding for high school completion programs carried out by the adult education and literacy systems, as described in 16 V.S.A. § 4011(f)(2), shall be paid to school districts or supervisory unions, or both. (c) The committee shall develop recommendations regarding: (1) allocation of payments between local school districts and supervisory unions and the statewide adult education and literacy system when programs are provided through contracts with qualified adult education and literacy service providers; (2) methods to ensure that programs are administered in a manner that promotes consistency with statewide standards and procedures; (3) the relationship between a high school diploma and the general equivalency degree that is provided through an adult education and literacy program; (4) mechanisms to ensure coordination between adult education and literacy programs and state requirements for individual education plans; (5) implementation of funding through school districts and supervisory unions in a manner that maximizes the efficient use of existing services for adult education and literacy programs; (6) methods by which school districts and supervisory unions can work with statewide adult education and literacy systems to improve services for students at risk of dropping out of school; and 1434 JOURNAL OF THE SENATE (7) whether funding for adult education and literacy activities should be paid through the current funding mechanism established in 16 V.S.A. § 4011(f)(2) or through a categorical grant program. (d) On or before January 15, 2006, the committee shall submit its recommendations to the senate and house committees on education and appropriations. Sec. 161. EDUCATION - ADULT EDUCATION AND LITERACY (a) It is the intent of the general assembly to appropriate funds for adult education and literacy programs from the education fund, notwithstanding the provisions of 16 V.S.A. § 4025(d) as it was the intent of the general assembly to do this in Sec. 173 of No. 122 of the Acts of the 2003. Neither this appropriation nor the appropriation from Sec. 173 of No. 122 repeals the education property tax. (b) It is further the intent of the general assembly to study the results of the report received pursuant to Sec. 160 of this act and, during the 2006 legislative session, to make a determination regarding how to fund adult education and literacy services for those students described in 16 V.S.A. § 4011(f)(2) in fiscal year 2007 and each year thereafter. Sec. 162. Education - adjusted education payment Grants Source of funds Education fund 966,000,000 966,000,000 Sec. 162a. Sec. 176 of No. 122 of the Acts of 2004, as amended by Sec. 55 of No. 6 of the Acts of 2005, is further amended to read: Sec. 176. Education – adjusted education payment Grants Source of funds Education fund 910,801,994 910,971,994 910,801,994 910,971,994 Sec. 162b. EARLY CHILDHOOD EDUCATION SERVICES (a) School districts may offer early childhood education services through direct provision of services, collaborative programs, or direct contracting with other public or private providers, or any combination of these, and a school district may obtain funding for these services by counting resident early education pupils in its full-time equivalent enrollment pursuant to Vermont State Board of Education Rule 9200.4, as in effect on June 1, 2005. School districts are encouraged to collaborate or contract with existing public and qualified private early education service providers. SATURDAY, JUNE 4, 2005 1435 Sec. 163. Education - essential early education grant Grants Source of funds Education fund 4,379,337 4,379,337 Sec. 164. Education - transportation Grants Source of funds Education fund 13,496,399 13,496,399 Sec. 165. Education - small school grants Grants Source of funds Education fund 5,250,000 5,250,000 Sec. 165a. Sec. 179 of No. 122 of the Acts of 2004, as amended by Sec. 56 of No. 6 of the Acts of 2005, is further amended to read: Sec. 179. Education – small school grants Grants Source of funds Education fund 5,080,383 5,213,383 5,080,383 5,213,383 Sec. 166. Education - capital debt service aid Grants Source of funds Education fund 450,355 450,355 Sec. 167. Education - tobacco litigation Personal services Operating expenses Grants Total Source of funds Tobacco fund 116,151 25,073 842,783 984,007 984,007 Sec. 168. Education - Act 117 cost containment Personal services Operating expenses Grants Total Source of funds 969,605 104,571 65,000 1,139,176 1436 JOURNAL OF THE SENATE Interdepartmental transfer 1,139,176 (a) Notwithstanding any other provisions of law, expenditures made from this section shall be counted under 16 V.S.A. § 2967(b) as part of the state’s 60 percent of the statewide total special education expenditures of funds which are not derived from federal sources. Sec. 168a. COUNCIL APPROPRIATION ON EDUCATION GOVERNANCE; (a) In Sec. 71 of No. 68 of the Acts of 2003, the general assembly created a Council on Education Governance to develop and implement a process for engaging a broad spectrum of Vermonters in a discussion of effective governance structures for delivery of public education with consideration of the need to address rising costs while maintaining Vermont’s high quality education system. The Council obtained funding from a private foundation and, in 2004, awarded $71,000 in small grants to education communities of Vermont school districts and supervisory unions to help them engage in discussions about reorganization for better service delivery at a lower cost. In their grant applications, several communities requested a workshop on policy governance, so the Council used an additional $7,500 to run one statewide workshop for all who wished to attend. All of these communities have made progress toward productive reorganization and most need another round of small grants to continue and complete their work. (b) Therefore, notwithstanding 16 V.S.A. § 4025(b), the amount of $75,000 is appropriated from the education fund to the commissioner of education for the purpose of enabling the department of education to continue working with the Council on Education Governance to award grants to education communities, and to document the processes, successes, and lessons to be learned from the work of these communities. (c) The commissioner of education shall, at the direction of the Council on Education Governance, issue a request for proposals, choose grant recipients, determine the amounts to be awarded to each recipient, and monitor the progress of each grant recipient for fiscal year 2006. The Council shall report to the general assembly each January on its progress and any recommendations for legislative change. Sec. 169. MEDICAID REIMBURSEMENT ADMINISTRATIVE SPECIAL FUND - DEPOSIT (a) In addition to deposits into the Medicaid reimbursement administrative special fund in accordance with 16 V.S.A. § 2959a(b), in fiscal year 2006, $1,139,176 of federal Medicaid receipts received for reimbursement of SATURDAY, JUNE 4, 2005 1437 medically related services provided to students who are Medicaid-eligible shall be deposited into the administrative special fund. Sec. 170. FUND APPROPRIATION AND TRANSFER (a) There is appropriated the amount of $259,300,000 in fiscal year 2006 from the general fund for transfer to the education fund. Sec. 171. State teachers’ retirement system Personal services Operating expenses Grants Total Source of funds General fund Pension trust fund Total 17,061,408 842,461 24,446,282 42,350,151 24,446,282 17,903,869 42,350,151 (a) Notwithstanding 16 V.S.A. § 1944(g)(2), the amount of the annual contribution to the Vermont state teachers’ retirement system shall be $24,446,282 in fiscal year 2006. Sec. 172. TAX DEPARTMENT - REAPPRAISAL AND LISTING PAYMENTS (a) The amount of $3,210,000 in education funds is appropriated in fiscal year 2006 to implement the provisions of 32 V.S.A. §§ 4041a(a), relating to payments to municipalities for reappraisal costs, and 5405(f), relating to payments of $1.00 per grand list parcel. (b) The towns currently engaged in litigation with the Washington electric cooperative regarding grand list appeals of the assessment of utility property may submit to the attorney general legal expenditures made by those towns as a result of this litigation, as those values were established by reference to information from the department of taxes, division of property valuation and review. The attorney general shall review the submitted bills and, if reasonable, approve reimbursement. As the litigation may have a substantial impact on the education grand list, $25,000 of the appropriation in this section shall be transferred to the attorney general and reserved for payment of expenses incurred by towns in defense of grand list appeals as provided herein. Expenditures for this purpose shall be considered qualified expenditures under 16 V.S.A. § 4025(c). Sec. 173. Tax department - property tax assistance Grants 118,966,276 1438 JOURNAL OF THE SENATE Source of funds General fund Transportation fund Education fund Total 7,988,056 2,378,220 108,600,000 118,966,276 Sec. 173a. Sec. 187 of No. 122 of the Acts of 2004, as amended by Sec. 58 of No. 6 of the Acts of 2005, is further amended to read: Sec. 187. Tax department – property tax assistance Grants Source of funds General fund Transportation fund Education fund Total 98,811,600 104,511,600 5,280,000 3,520,000 90,011,600 98,811,600 8,680,000 3,520,000 92,311,600 104,511,600 Sec. 174. Total general education and property tax assistance 1,696,950,426 Source of funds General fund Transportation fund Education fund Special funds Tobacco fund Federal funds Pension trust fund Interdepartmental transfer Total 304,750,342 2,903,066 1,240,167,487 1,202,885 984,007 115,413,832 17,903,869 13,624,938 1,696,950,426 Sec. 175. University of Vermont Grants Source of funds General fund 39,271,166 39,271,166 (a) The commissioner of finance and management shall issue warrants to pay one-twelfth of the appropriation to the University of Vermont on or about the 15th of each calendar month of the year. (b) Of the above appropriation, $367,965 shall be transferred to EPSCoR for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both. Sec. 176. University of Vermont - Morgan horse farm SATURDAY, JUNE 4, 2005 Grants Source of funds General fund 1439 5,000 5,000 Sec. 177. Vermont public television Grants Source of funds General fund 573,832 573,832 Sec. 178. Vermont state colleges Grants Source of funds General fund 22,532,878 22,532,878 (a) The commissioner of finance and management shall issue warrants to pay one-twelfth of the appropriation to the Vermont state colleges on or about the 15th of each calendar month of the year. (b) Of the above appropriation, $100,000 shall be reserved for use as the state’s fiscal year 2006 contribution toward the growth of the endowment fund for the Vermont state colleges. The state’s funds are to serve as a challenge match to enhance the state colleges’ ability to secure endowment contributions from alumni and other interested parties. The intent is that the fiscal year 2006 appropriation will be the last of five annual appropriations, totaling $500,000. The conditions of this challenge match are that the state colleges are required to raise three dollars for each dollar appropriated by the state. A method for accounting for the state colleges’ share has been agreed to between the state colleges and the commissioner of finance and management. Transfers to the state colleges’ endowment fund shall be under the condition that only the interest accruing to the fund will be available for purposes as designated by the board of trustees of the state colleges. By June 30, 2007, any remaining state appropriations designated for the state colleges’ endowment fund that have not been matched by the state colleges shall revert to the general fund. The funds appropriated for this purpose shall be retained by the state. (c) Of the above appropriation, $414,950 shall be transferred to the Vermont manufacturing extension center for the purpose of complying with the state matching fund requirements necessary for the receipt of available federal or private funds, or both. (d) The balance held by the treasurer in the Vermont state college bond fund (#21010) in the principal amount of $723,850 shall be transferred to the Vermont state colleges for the purposes of a reserve for future debt service. 1440 JOURNAL OF THE SENATE Sec. 178a. VERMONT STATE COLLEGES; COLLECTIVE BARGAINING AGREEMENT (a) With the exception of the early retirement provisions referenced in the decision of the Vermont labor relations board, 28 VLRB 28, the last best offer of the administration of the Vermont state colleges, as recommended by the VLRB to the general assembly, is approved, pursuant to the provisions of 3 V.S.A. § 925(i), and it shall be the collective bargaining agreement between the Vermont state colleges and the Vermont state colleges faculty federation, AFT Local #3180. The early retirement provisions shall be determined in accordance with subsection (b) of this section. (b) The parties to the collective bargaining agreement are directed to recommence negotiation of provisions regarding the early retirement program and if agreement is not reached and ratified by September 30, 2005, then the provisions shall be submitted for final and binding resolution to a neutral arbitrator selected in accordance with the procedures of and through the American Arbitration Association. Until such time as any new early retirement provisions are determined pursuant to this subsection, provisions of the current early retirement program shall continue in effect. (c) 3 V.S.A. § 925(i) is amended to read: (i) If the dispute remains unresolved 15 days after transmittal of findings and recommendations, each party shall submit as a single package its last best offer on all disputed issues to the board. Each party's last best offer shall be certified as such to the board by the fact-finding panel. The board may hold hearings as it deems appropriate. Within 30 days of the certifications it shall select between the last best offers of the parties, considered in their entirety without amendment. In the case of the state of Vermont or the Vermont state colleges the board shall recommend its choice to the general assembly as the bargaining agreement which shall become effective subject to appropriations by the general assembly. The board shall determine the cost of the package selected and request the appropriation necessary to fund the recommendation. In the case of the University of Vermont or the Vermont State Colleges, the decision of the board shall be final and binding on each party. Nothing herein precludes the general assembly from enacting laws amending provisions of any collective bargaining agreement involving the state of Vermont or the Vermont state colleges arrived at under this section. (d) Subsections (a) and (b) of this section, shall be effective on passage. Subsection (c) of this section, shall take effect July 1, 2005. The provisions of subsection (c), amending 3 V.S.A. § 925(i), shall not affect the contract negotiations referenced in subsection (a) which shall be final and binding under the procedures of subsection (b). SATURDAY, JUNE 4, 2005 1441 Sec. 179. Vermont state colleges - allied health Grants Source of funds General fund 993,527 993,527 Sec. 180. Vermont interactive television Grants Source of funds General fund 815,331 815,331 Sec. 181. Vermont student assistance corporation Grants Source of funds General fund 17,771,050 17,771,050 (a) Of the above appropriation, $25,000 shall be deposited into the trust fund established in 16 V.S.A. § 2845. (b) Except as provided in subsection (a) of this section, not less than 100 percent of grants shall be used for direct student aid. (c) The balance held by the treasurer in fund #21385, approximately $62,552, from the amount appropriated in No. 38 of the Acts of 1964 and from such other amounts as may have been appropriated, earned, or otherwise deposited in that account from time to time and not previously expended for student loan default guaranty purposes, is hereby transferred to the trust fund established by 16 V.S.A. § 2845 and held therein and administered by the Vermont student assistance corporation to provide grants for students with remaining financial needs and who are or have been under the custody of the commissioner of the department for children and families, all in accordance with the provisions of section 2845. Sec. 182. New England higher education compact Grants Source of funds General fund Sec. 183. Total higher education and other Source of funds General fund 80,000 80,000 82,042,784 82,042,784 Sec. 184. Natural resources - agency of natural resources - administration Personal services 4,138,173 1442 JOURNAL OF THE SENATE Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 1,651,001 90,180 5,879,354 4,324,943 1,042,150 338,355 173,906 5,879,354 (a) The amount of $400,000 is appropriated from the solid waste management assistance fund to the brownfields revitalization fund in the agency of commerce and community development. These funds are hereby appropriated to match federal funds available through the Environmental Protection Agency for brownfields redevelopment purposes and for grants to specific projects subject to 10 V.S.A. § 6615a(1)(5) and (6). Sec. 184a. 10 V.S.A. § 6615a(l)(5) and (6) are amended to read: (5) Grants. Grants may be issued by the secretary of commerce and community development, with the approval of the secretary of natural resources, as follows: (A) The secretary of commerce and community development They may award an applicant a grant not to exceed $50,000.00 for the characterization and assessment of a site. (B) The secretary of commerce and community development They may award an applicant a grant not to exceed $200,000.00 for the remediation of a site. (C) The secretary of commerce and community development They may make a grant to assist an applicant in purchasing environmental insurance relating to the performance of the characterization, assessment or remediation of a brownfields site in accordance with a corrective action plan approved by the secretary of natural resources. (D) The secretary of commerce and community development They may use a portion of the brownfields revitalization fund to develop a risksharing pool, an indemnity pool, or an insurance mechanism to provide financial assistance to applicants. (E) All reports generated with the assistance of grants awarded under the brownfields revitalization fund, including site assessments, site investigations, feasibility studies, corrective action plans, and completion reports, shall be provided to the secretary secretaries in hard copy and in electronic form. SATURDAY, JUNE 4, 2005 1443 (6) Loans. (A) For the purpose of this chapter, "VEDA" means the Vermont economic development authority, which is authorized to make loans on behalf of the state under this section after the secretary of commerce and community development, in consultation with the approval of the secretary of natural resources, has first determined an applicant eligible to apply to VEDA for a loan. These loans shall be issued and administered by VEDA, pursuant to this chapter, and VEDA's enabling authority, pursuant to chapter 12 of this title. The secretary of commerce and community development, in consultation with the approval of the secretary of natural resources and in consultation with the VEDA manager, shall annually determine the amount of the brownfields revitalization fund available to VEDA for loans under this section. *** Sec. 185. Connecticut River watershed advisory commission Grants Source of funds General fund Federal funds Total 38,000 22,500 15,500 38,000 Sec. 186. Citizens’ advisory committee on Lake Champlain’s future Personal services Operating expenses Total Source of funds General fund 3,800 3,700 7,500 7,500 Sec. 187. Natural resources - state land local property tax assessment Operating expenses Source of funds General fund Transportation fund Interdepartmental transfer Total 1,449,000 974,684 212,816 261,500 1,449,000 Sec. 188. Green up Grants Source of funds General fund Special funds 17,196 6,646 10,550 1444 JOURNAL OF THE SENATE Total 17,196 Sec. 189. Fish and wildlife - support and field services Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Fish and wildlife fund Total 9,566,015 4,004,370 662,453 14,232,838 1,726,853 367,926 12,138,059 14,232,838 (a) The department of fish and wildlife shall obtain approval of the general assembly prior to taking any action that would result in closure or consolidation of fish culture operations. (b) Of the above appropriation, $5,000 shall be used to provide scholarships for children wishing to attend one of the conservation camps administered by the department of fish and wildlife. No portion of any general fund appropriation, tuition payments, donations made, or interest earned on endowment funds for the camps program within the department of fish and wildlife for the purposes of supporting the conservation camps shall be reallocated or used for any other purpose. Sec. 190. Fish and wildlife - watershed improvement Grants Source of funds Fish and wildlife fund 50,661 50,661 Sec. 191. Forests, parks and recreation - administration Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Total 849,194 475,239 1,998,100 3,322,533 983,533 1,046,000 1,293,000 3,322,533 Sec. 192. DEPARTMENT OF FORESTS, PARKS AND RECREATION; EMPLOYEES’ GROUP INSURANCE; REPEAL SATURDAY, JUNE 4, 2005 1445 (a) 3 V.S.A. § 631(b) (health insurance plan available to state departments on February 23, 1951) shall be repealed on July 1, 2005. Sec. 193. PARTICIPATION IN A STATE GROUP INSURANCE PLAN (a) Employees of a state department who participate in a group insurance plan under subsection 631(b) of Title 3 and who choose to continue to participate in a state group insurance plan shall choose from among those plans available to state employees no later than 30 days after the effective date of this act. The commissioner of human resources shall assist these employees in the transition to a new health plan. Sec. 194. Forests, parks and recreation - forestry Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 4,514,728 503,152 353,000 5,370,880 3,484,380 21,500 360,000 1,291,000 214,000 5,370,880 Sec. 195. Forests, parks and recreation - state parks Personal services Operating expenses Grants Total Source of funds General fund Special funds Total 4,538,235 1,891,697 5,000 6,434,932 610,632 5,824,300 6,434,932 Sec. 196. Forests, parks and recreation - lands administration Personal services Operating expenses Total Source of funds General fund Special fund Interdepartmental transfer 521,610 237,989 759,599 524,599 195,000 40,000 1446 JOURNAL OF THE SENATE Total 759,599 SATURDAY, JUNE 4, 2005 1447 Sec. 197. Forests, parks and recreation - youth conservation corps Personal services Operating expenses Grants Total Source of funds Special funds Federal funds Interdepartmental transfer Total 387,133 25,357 500,000 912,490 567,490 95,000 250,000 912,490 Sec. 198. Forests, parks and recreation - forest highway maintenance Personal services Operating expenses Total Source of funds General fund Transportation fund Total 222,978 301,000 523,978 36,920 487,058 523,978 Sec. 199. Environmental conservation - management and support services Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 2,835,084 823,118 96,267 3,754,469 1,123,601 701,255 1,023,119 906,494 3,754,469 (a) Of the above special fund appropriation, $75,000 shall be used to fund a brownfields project manager position. Sec. 200. Environmental conservation - air and waste management Personal services Operating expenses Grants Total Source of funds General fund 6,944,360 6,328,003 1,706,000 14,978,363 715,896 1448 JOURNAL OF THE SENATE Special funds Federal funds Interdepartmental transfer Total 11,147,684 2,944,783 170,000 14,978,363 Sec. 200a. FISCAL YEAR 2006; ONE-TIME WASTE MANAGEMENT GRANTS (a) The amount of $150,000 is appropriated from the solid waste management assistance fund and shall be used on a one-time basis for the purpose of providing grants to municipalities for recycling, collection, and proper management of household hazardous waste and waste mercury-added products. Sec. 201. Environmental conservation - office of water programs Personal services Operating expenses Grants Total Source of funds General fund Transportation fund Special funds Federal funds Interdepartmental transfer Total 12,236,776 2,099,391 2,953,502 17,289,669 6,232,691 185,182 3,717,507 6,616,039 538,250 17,289,669 (a) The commissioner shall ensure that $75,000 from the river management grants program is granted to the Vermont youth conservation corps to support a comprehensive river management program. This program shall be coordinated to meet the stated objectives of the streambed restoration plan outlined in the clean and clear program. The Vermont youth conservation corps shall submit a report to the house and senate committees on appropriations and the house and senate committees on natural resources and energy no later than January 15, 2006 on actual streambed restoration outcomes achieved by the Vermont youth conservation corps in context of the clean and clear program’s stated objectives. Sec. 202. control Environmental conservation - tax-loss-Connecticut River flood Operating expenses Source of funds Special funds 40,000 40,000 SATURDAY, JUNE 4, 2005 1449 Sec. 203. Natural resources board Personal services Operating expenses Total Source of funds General fund Special funds Total Sec. 204. Total natural resources Source of funds General fund Transportation fund Fish and wildlife fund Special funds Federal funds Interdepartmental transfer Total 2,320,080 394,264 2,714,344 1,065,127 1,649,217 2,714,344 78,325,806 21,840,505 1,274,482 12,188,720 26,851,153 13,616,796 2,554,150 78,325,806 Sec. 205. Commerce and community development - agency of commerce and community development - administration Personal services Operating expenses Grants Total Source of funds General fund 1,270,218 441,401 236,200 1,947,819 1,947,819 (a) On January 15, 2006, the agency of commerce and community development with the assistance of the department of public service shall report to the general assembly on the status of the state in reaching its telecommunications coverage goals, specifically in the areas of cellular and broadband service coverage. The report shall address the achievement to date of the telecom infrastructure and service development goals and desired improvement as stated in the Vermont telecommunications plan dated September 2004 and shall report on the agency’s actions taken and planned to help Vermont reach these goals. (b) The Vermont economic progress council shall consider the findings and recommendations of the economic development study committee in Sec. 205c of this act prior to developing the 10-year economic plan for the state. The secretary of commerce and community development shall transfer at least $30,000 of funds appropriated to the department of economic development in 1450 JOURNAL OF THE SENATE Sec. 212 of this act to the Vermont economic progress council for the 10-year economic plan. (c) Of the above general fund appropriation, $186,200 shall be for a grant to the Vermont sustainable jobs fund and $50,000 shall be for a grant to the Vermont council on rural development. Sec. 205a. CHIEF MARKETING OFFICER (a) The establishment of one (1) new exempt position - Chief Marketing Officer - is authorized in fiscal year 2006. This position shall be transferred and converted from existing vacant positions in the executive branch of state government and shall be established within the office of the secretary of commerce and community development, to be appointed by and report to the secretary of the agency of commerce and community development. (b) It is the responsibility of the Chief Marketing Officer (CMO) to ensure consistency and efficiency in the use of state funds for marketing and promotional activities conducted by state agencies. The duties of the CMO shall include, but not be limited to, the following: (1) Consolidate appropriate statewide marketing communications activities of the marketing and promotional (MAP) state agency partners, the department of tourism and marketing, the department of economic development, the agency of agriculture, food and markets, the division of historic preservation, the agency of transportation, the department of forests, parks and recreation, the department of fish and wildlife, and the information centers division. (2) Develop, produce, and place marketing and promotional materials for all MAP agencies. The CMO will work with the MAP agencies to develop annual marketing objectives, plans, and strategies and create objective metrics for evaluating the effectiveness of the centralized marketing approach. (3) Marketing and promotional funds allocated with agency budgets will be retained by the state agencies; however, the expenditure of these funds must first be approved by the CMO. (4) The CMO shall consolidate state marketing and promotional activities with these existing resources in state agencies. The CMO may make recommendations for reallocation through interdepartmental transfer of these resources. Funds may be transferred with the approval of the general assembly or the joint fiscal committee if the general assembly is not in session. (5) The CMO will conduct annual research to assess state agency satisfaction with the centralized marketing department and communicate the benefits of the consolidated statewide approach to all state agencies. SATURDAY, JUNE 4, 2005 1451 (6) The CMO shall report to the general assembly by January 15, 2006 on the potential for licensing a state-owned Vermont brand to state-based companies. This report shall include the statutory changes that will be needed, including the repeal of existing regulations regarding the use of the Vermont name; and the estimated time line for establishing the Vermont brand program. (7) The CMO shall work collaboratively with the higher education community in Vermont upon request by institutions of higher education. (c) The CMO and the secretary of commerce and community development shall make recommendations to redirect state resources from administration and overhead in MAP agencies to marketing and promotional activities. Sec. 205b. RETROACTIVE APPLICATION OF DEFERRAL AND MITIGATION TO PRIOR AWARDS (a) The deferral and mitigation of disallowance and recapture provisions of section 5930h of Title 32 shall continue in effect to defer and mitigate disallowance or recapture of any economic advancement tax incentive award granted prior to July 1, 2005, with the following modifications: (1) The deferral and mitigation provisions of subsection 5930h(f) of Title 32 shall be available whether or not the curtailment of trade or business resulting in the notice of recapture or disallowance occurred prior to July 1, 2003, the effective date of No. 67 of the Acts of 2003. (2) An application to the council for a deferral relating to an award granted prior to July 1, 2005 must be made within 90 days of the effective date of this act or within 90 days of receipt of written determination of recapture or disallowance, whichever is later. (3) The deferral period shall be for a nonrenewable period of 36 months, notwithstanding the 12-month provision prescribed in subsection 5930h(f) of Title 32. (4) The minimum level of restoration of employment necessary within the recapture period shall be 75 percent of the highest annual average number of full-time employees of the applicant during any year in a period of six years after the initial authorization of an incentive by the council. (5) The deferral and mitigation provisions of subsection 5930h(f) of Title 32 shall apply to credits which have been applied against tax liabilities and to carryforward of credits granted but not yet taken. The council may in its discretion mitigate the disallowance or recapture of credits applied against 1452 JOURNAL OF THE SENATE tax liabilities. With respect to disallowance of carryforward of credits, the council shall determine a mitigated amount based on the cost-benefit model analysis of the taxpayer’s actual job creation and performance, and any mitigated amount shall take account of credits applied against tax liabilities. For the purposes of this section, the three-year time limit on notices of deficiency and assessment of penalty and interest under section 5882 of Title 32 shall commence upon conclusion of the 36-month deferral period allowed by this section. Sec. 205c. ECONOMIC DEVELOPMENT STUDY COMMITTEE (a) There is created an economic development study committee to be composed of six members of the general assembly, three from the senate appointed by the senate committee on committees, one each from the committees on appropriations, finance, and economic development, housing and general affairs; and three members of the house appointed by the speaker, one each from the committees on appropriations, commerce, and ways and means; one person to be appointed by the Vermont league of cities and towns; one person to be appointed by the associated industries of Vermont; one person to be appointed by Vermont businesses for social responsibility; and one person to be appointed by the Vermont natural resources council. (b) The committee may meet following adjournment of the 2005 session of the general assembly as it deems necessary to perform its duties, and for attendance at meetings members shall be entitled to reimbursement for expenses and compensation for services as provided in 2 V.S.A. § 406. (c) The economic development study committee shall have the assistance of the joint fiscal office, the legislative council, the department of taxes, the agency of commerce and community development, and the Vermont economic progress council. With the approval of the joint fiscal committee, the economic development study committee may retain or contract for expert consulting assistance. (d) The committee shall be guided by the general assembly’s support for a strong economic development policy for Vermont which is fiscally responsible and targeted for actual development results and shall consult specifically with representatives of the types of business which the committee determines would be most attractive to Vermont; and by the general assembly’s intent to fulfill the state’s pending obligations to businesses which have been granted economic advancement tax incentives. The committee shall: (1) Analyze whether targeted business incentive grants and nonmonetary business aid such as permit and regulatory assistance or other assistance and increased development of infrastructure would be more successful, efficient, and cost-effective than tax expenditures in encouraging SATURDAY, JUNE 4, 2005 desired economic activity in the state. committee shall consider: 1453 In analyzing this approach, the (A) The types of new business Vermonters would like to attract to this state and the kind of business and economic growth Vermonters would find appropriate; (B) The specific grants and nonmonetary assistance which would attract those types of business to Vermont; (C) The best strategy and long-term goals for Vermont economic development and job retention, particularly in light of both domestic and global business competition; (D) Targeting incentives to startup and small businesses and whether these kinds of incentives would advance the long-term goals determined under subdivision (C) of this subdivision (1); (E) Targeting incentives to regions of the state with high unemployment, low wages, or other indications of need for economic development and job creation and whether these kinds of incentives would advance the long-term goals determined under subdivision (C) of this subdivision (1); (F) Vermont tax policies which place Vermont businesses at a competitive disadvantage and how best to address these policies and mitigate their effects; (G) Specific needs for development or improvement of transportation and telecommunications systems; (H) The types of postsecondary institution expansion or development which would attract research and technology firms; (I) The advisability of designating a single state official to advise and aid businesses in obtaining all necessary permits and other regulatory compliance. (2) Analyze the advantages and disadvantages of privatizing all or a portion of economic development functions of the state. (3) Review the advisability of current law limitations on approval for tax increment financing in downtown development projects and recommend any changes necessary to improve the approval process. (4) Review the advisability of a single, payroll-based tax credit program, and if found advisable, recommend legislation to implement such a program. In reviewing the advisability, the committee shall consider: 1454 JOURNAL OF THE SENATE (A) the utility of a “but for” test and whether it should be abolished; and whether an annual cap or other limitation is appropriate on the total awards to be made; and (B) whether to develop and link economic advancement tax incentives to municipal awards and incentives to municipalities and to account for these. (e) The economic development study committee shall report its findings and recommendations to the senate committees on economic development, housing and general affairs, finance, and appropriations; and the house committees on commerce, ways and means, and appropriations no later than January 15, 2006. Sec. 206. FISCAL YEAR 2006 AGENCY-WIDE GENERAL FUND REDUCTION (a) The secretary of the agency of commerce and community development shall reduce the total general fund appropriations to the agency in fiscal year 2006 by $25,000. Sec. 207. Housing and community affairs Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Interdepartmental transfer Total 2,472,749 301,356 4,099,340 6,873,445 1,531,188 3,663,918 1,639,339 39,000 6,873,445 (a) Of the above appropriation, no less than $60,000 in general funds shall be granted to the Champlain Valley Office of Economic Opportunity’s mobile home project for the “First Stop” program, which provides assistance to mobile home residents statewide. Sec. 208. Historic sites - operations Personal services Operating expenses Total Source of funds General fund Special funds 604,583 275,769 880,352 479,352 372,000 SATURDAY, JUNE 4, 2005 Interdepartmental transfer Total 1455 29,000 880,352 Sec. 209. Historic sites - special improvements Personal services Operating expenses Total Source of funds Special funds Federal funds Interdepartmental transfer Total 71,408 911,408 982,816 50,000 398,140 534,676 982,816 Sec. 210. Community development block grants Grants Source of funds Federal funds 8,646,118 8,646,118 (a) Community development block grants will carry forward until expended. (b) Community development block grant (CDBG) funds shall be expended in accordance with and in the order of the following priorities: (1) The greatest priority for the use of CDBG funds will be the creation and retention of affordable housing and jobs. (2) The overarching priority and fundamental objective in the use of funds for all affordable housing is to achieve perpetual affordability through the use of mechanisms that produce housing resources that will continue to remain affordable over time. It is the goal of the state to maintain at least 45 to 55 percent of CDBG funds for affordable housing applications. (3) Among affordable housing applications, the highest priorities are to preserve and increase the supply of affordable family housing, to reduce and strive to eliminate childhood homelessness, and to serve families and individuals at or below 30 percent of HUD Area Median Income and people with special needs as described in the Consolidated Plan. Housing for seniors should be considered when it meets clear unmet needs in the region and when it leverages rental assistance or other public subsidies for the lowest income seniors. (4) Projects which address the ongoing deterioration of the existing housing stock through acquisition, preservation, and rehabilitation of units 1456 JOURNAL OF THE SENATE shall comply with housing quality standards with priority given to lead hazard reduction and energy efficiency. (5) Preference shall be given to projects that maintain the historic settlement pattern of compact village and downtown centers separated by a rural working landscape. Funds generally should not be awarded to projects that promote or constitute sprawl, defined as dispersed development outside of compact urban and village centers, along highways, and in rural countryside. (c) Up to $750,000 may be set aside for brownfield sites after submission of a plan to the joint fiscal committee. Sec. 211. Downtown transportation and capital improvement fund Personal services Grants Total Source of funds Special funds 40,000 760,000 800,000 800,000 Sec. 212. Economic development Personal services Operating expenses Grants Total Source of funds General fund Special funds Federal funds Total 1,759,654 726,057 1,634,943 4,120,654 3,467,184 455,000 198,470 4,120,654 Sec. 213. Vermont training program Personal services Operating expenses Grants Total Source of funds General fund Special funds Total 67,050 26,637 1,549,013 1,642,700 1,607,700 35,000 1,642,700 Sec. 214. Tourism and marketing Personal services Operating expenses Grants 1,804,143 2,068,315 337,000 SATURDAY, JUNE 4, 2005 Total Source of funds General fund 1457 4,209,458 4,209,458 Sec. 215. Vermont life Personal services Operating expenses Total Source of funds Enterprise funds 719,770 128,000 847,770 847,770 Sec. 216. Vermont council on the arts Grants Source of funds General fund 494,618 494,618 Sec. 217. Vermont symphony orchestra Grants Source of funds General fund 101,960 101,960 Sec. 218. Vermont historical society Grants Source of funds General fund 630,653 630,653 Sec. 219. Vermont housing and conservation board Grants Source of funds Special funds Federal funds Total 26,246,036 14,088,426 12,157,610 26,246,036 Sec. 219a. 10 V.S.A. § 321 is amended to read: § 321. GENERAL POWERS AND DUTIES *** (b) The board shall seek out and fund not-for-profit organizations and municipalities that can assist any region of the state which has high housing prices, high unemployment and low per capita incomes in obtaining grants and loans under this chapter for perpetually affordable housing. The board shall administer the “HOME” affordable housing program which was enacted under 1458 JOURNAL OF THE SENATE Title II of the Cranston-Gonzalez National Affordable Housing Act (Title II, P.L. 101-625, 42 U.S.C. 12701-12839). The state of Vermont, as a participating jurisdiction designated by Department of Housing and Urban Development, shall enter into a written memorandum of understanding with the board, as subrecipient, authorizing the use of HOME funds for eligible activities in accordance with applicable federal law and regulations. HOME funds shall be used to implement and effectuate the policies and purposes of this chapter related to affordable housing. The memorandum of understanding shall include performance measures and outcomes that VHCB will annually report on to the Vermont department of housing and community affairs. (c) On behalf of the state of Vermont, the board shall seek and administer federal farmland protection funds to facilitate the acquisition of interests in land to protect and preserve in perpetuity important farmland for future agricultural use. Such funds shall be used to implement and effectuate the policies and purposes of this chapter. (c) (d) The board shall inform all grant applicants and recipients of funds derived from the annual capital appropriations and state bonding act of the following: "The Vermont Housing and Conservation Trust Fund is funded by the taxpayers of the State of Vermont, at the direction of the General Assembly, through the annual Capital Appropriation and State Bonding Act." An appropriate placard shall, if feasible, be displayed at the location of the proposed grant activity. Sec. 220. Vermont humanities council Grants Source of funds General fund 160,599 160,599 (a) Of the above appropriation, $20,000 shall be used to support the connections program. Sec. 221. Total commerce and community development 58,559,998 Source of funds General fund Special funds Federal funds Enterprise funds Interdepartmental transfer Total 14,605,531 19,464,344 23,039,677 847,770 602,676 58,559,998 SATURDAY, JUNE 4, 2005 1459 Sec. 222. TRANSPORTATION (a) Transportation fund appropriations made available for the agency of transportation in cooperation with the federal government shall be available until expended and shall not revert. (b) The commissioner of finance and management shall maintain and control transportation appropriations in separate state and federal appropriations, as needed, and may incur overdrafts in personal services and operating expenses pending distribution of payroll and employee charges to other appropriations. Sec. 223. Transportation - finance and administration Personal services Operating expenses Total Source of funds Transportation fund Federal funds Total 8,155,420 2,063,928 10,219,348 9,671,292 548,056 10,219,348 Sec. 224. Transportation - aviation Personal services Operating expenses Grants Total Source of funds Transportation fund Federal funds Total 1,199,104 8,023,312 50,000 9,272,416 2,222,416 7,050,000 9,272,416 Sec. 225. Transportation - buildings Personal services Operating expenses Total Source of funds Transportation fund 210,000 1,087,548 1,297,548 1,297,548 Sec. 226. Transportation - program development Personal services Operating expenses Grants Total 37,671,918 72,436,634 37,115,246 147,223,798 1460 JOURNAL OF THE SENATE Source of funds Transportation fund Local match Federal funds Total 28,453,772 1,898,426 116,871,600 147,223,798 Sec. 227. [Deleted] Sec. 228. [Deleted] Sec. 229. Transportation - interstate rest areas Personal services Operating expenses Total Source of funds Transportation fund Federal funds Total 80,000 916,100 996,100 25,000 971,100 996,100 Sec. 230. Transportation – maintenance - state system Personal services Operating expenses Grants Total Source of funds Transportation fund Federal funds Total 29,352,669 24,471,617 987,800 54,812,086 54,104,586 707,500 54,812,086 Sec. 231. Transportation - policy and planning Personal services Operating expenses Grants Total Source of funds Transportation fund Federal funds Total 2,641,670 492,908 4,140,769 7,275,347 1,806,692 5,468,655 7,275,347 Sec. 232. Transportation - rail Personal services Operating expenses Grants Total 743,456 7,103,746 2,700,000 10,547,202 SATURDAY, JUNE 4, 2005 Source of funds Transportation fund Federal funds Total 1461 8,196,929 2,350,273 10,547,202 Sec. 233. Transportation - public transit Personal services Operating expenses Grants Total Source of funds Transportation fund Federal funds Total 470,313 130,240 14,288,340 14,888,893 5,796,599 9,092,294 14,888,893 Sec. 234. Transportation - central garage Personal services Operating expenses Total Source of funds Internal service funds 3,183,942 9,959,952 13,143,894 13,143,894 (a) Of the above appropriation, $1,400,000 is from the transportation equipment replacement account within the central garage fund in accordance with 19 V.S.A. § 13(c) for the purchase of equipment as authorized in 19 V.S.A. § 13(b). Sec. 235. Department of motor vehicles Personal services Operating expenses Grants Total Source of funds Transportation fund Federal funds Total 16,324,559 6,438,943 156,250 22,919,752 22,286,370 633,382 22,919,752 (a) Of the above transportation fund appropriation, $127,483 shall be transferred to the department of education, education programs to support the driver education program. 1462 JOURNAL OF THE SENATE Sec. 236. Transportation - town highway - structures Grants Source of funds Transportation fund 3,494,500 3,494,500 Sec. 237. Transportation - town highway - emergency fund Grants Source of funds Transportation fund 57,129 57,129 Sec. 238. Transportation - town highway - Vermont local roads Grants Source of funds Transportation fund Federal funds Total 783,700 333,867 449,833 783,700 Sec. 239. Transportation - town highway - class 2 roadway Grants Source of funds Transportation fund 4,748,750 4,748,750 Sec. 240. Transportation - town highway - bridges Personal services Operating expenses Grants Total Source of funds Transportation fund Local match Federal funds Total 3,650,000 16,862,175 43,000 20,555,175 3,892,314 1,563,678 15,099,183 20,555,175 Sec. 241. Transportation - town highway - aid program Grants Source of funds Transportation fund 24,982,744 24,982,744 (a) The above appropriation is authorized, notwithstanding 19 V.S.A. § 306(a). SATURDAY, JUNE 4, 2005 1463 Sec. 242. Transportation - town highway - class 1 supplemental grants Grants Source of funds Transportation fund 128,750 128,750 Sec. 243. Transportation - public assistance grant program Grants Source of funds Local match Federal funds Total 200,001 1 200,000 200,001 Sec. 244. Transportation board Personal services Operating expenses Total Source of funds Transportation fund 72,795 10,605 83,400 83,400 Sec. 244a. Bridge maintenance program Operating expenses Source of funds Transportation fund Local funds Federal funds Total 4,662,281 959,622 61,361 3,641,298 4,662,281 Sec. 244b. Discretionary spending Operating expenses Source of funds Transportation fund Federal funds Total Sec. 245. Total transportation Source of funds Transportation fund Local match Federal funds Internal service funds Total 1,825,068 566,338 1,258,730 1,825,068 354,117,882 173,108,618 3,523,466 164,341,904 13,143,894 354,117,882 1464 JOURNAL OF THE SENATE Sec. 246. Debt service Debt service Source of funds General fund Transportation fund Special funds Total Sec. 247. Total debt service Source of funds General fund Transportation fund Special funds Total 67,461,234 62,968,427 2,109,547 2,383,260 67,461,234 67,461,234 62,968,427 2,109,547 2,383,260 67,461,234 Sec. 248. RELATIONSHIP TO EXISTING LAWS (a) Except as specifically provided, this act shall not be construed in any way to negate or impair the full force and effect of existing laws. Sec. 249. OFFSETTING APPROPRIATIONS (a) In the absence of specific provisions to the contrary in this act, when total appropriations are offset by estimated receipts, the state appropriations shall control, notwithstanding receipts being greater or less than anticipated. Sec. 250. FEDERAL FUNDS (a) In fiscal year 2006, the governor, with the approval of the general assembly, or the joint fiscal committee if the general assembly is not in session, may accept federal funds available to the state of Vermont including block grants in lieu of or in addition to funds herein designated as federal. The governor, with the approval of the general assembly, or the joint fiscal committee if the general assembly is not in session, may allocate all or any portion of such federal funds for any purpose consistent with the purposes for which the basic appropriations in this act have been made. (b) If, during fiscal year 2006, federal funds available to the state of Vermont and designated as federal in this and other acts of the 2005 session of the Vermont general assembly are converted into block grants or are abolished under their current title in federal law and reestablished under a new title in federal law, the governor may continue to accept such federal funds for any purpose consistent with the purposes for which the federal funds were appropriated. The governor may spend such funds for such purposes for no more than 45 days prior to legislative or joint fiscal committee approval. Notice shall be given to the joint fiscal committee without delay if the SATURDAY, JUNE 4, 2005 1465 governor is intending to use the authority granted by this section, and the joint fiscal committee shall meet in an expedited manner to review the governor’s request for approval. (c) Any agreement, waiver of the federal Medicaid law, or commitment negotiated by the state with the federal government under which funding for the Medicaid program in Vermont is to be transformed from a system of state-federal matching grants to any other system of federal participation, such as global funding commitments or block grants, is conditional upon approval by act of the general assembly, or, if the general assembly is not in session and the speaker and senate president pro-tempore determine that it will not reconvene within the next 30 day period, by a majority vote of the members of the joint fiscal committee upon recommendation of the health access oversight committee. For the purposes of this section, “Medicaid program” means any program for which Medicaid funding is currently spent or is anticipated to be spent, including Medicaid, the Vermont health access plan, VHAP pharmacy, VScript, special education services, home- and community-based services, mental health services, services provided by the state ombudsman programs, or services for the developmentally disabled. For the purposes of this section, “funding for the Medicaid program” also means federal allocations or other funding for the state children’s health insurance program (SCHIP) if such funding is to be included in or accounted for in any negotiated system of federal participation, including a determination of budget neutrality. Sec. 251. DEPARTMENTAL RECEIPTS (a) All receipts shall be credited to the general fund except as otherwise provided and except the following receipts, for which this subsection shall constitute authority to credit to special funds: Connecticut River flood control Department of public service - sale of power Department of taxes - unorganized towns and gores (b) Notwithstanding any other provision of law, departmental indirect cost recoveries (32 V.S.A. § 6) receipts are authorized, subject to the approval of the secretary of administration, to be retained by the department. All recoveries not so authorized shall be covered into the general fund, or, for agency of transportation recoveries, the transportation fund. Sec. 252. NEW POSITIONS (a) Notwithstanding any other provision of law, the total number of authorized state positions, both classified and exempt, excluding temporary positions as defined in 3 V.S.A. § 311(11), shall not be increased during fiscal 1466 JOURNAL OF THE SENATE year 2006, except for new positions authorized by the 2005 legislative session. Limited service positions approved pursuant to 32 V.S.A. § 5 shall not be subject to this restriction. Sec. 253. APPROPRIATIONS; PROPERTY TRANSFER TAX (a) This act contains the following amounts appropriated from special funds that receive revenue from the property transfer tax. Expenditures from these appropriations shall not exceed available revenues: (1) Notwithstanding Sec. 273 of No. 122 of the Acts of the 2003 Adj. Sess (2004), the sum of $288,000 is appropriated from the property valuation and review administration special fund to the department of taxes for administration of the use tax reimbursement program. Notwithstanding 32 V.S.A. § 9610(c), amounts above $288,000 from the property transfer tax that are deposited into the property valuation and review administration special fund shall be transferred into the general fund. (2) The sum of $13,171,180 is appropriated from the Vermont housing and conservation trust fund to the Vermont housing and conservation trust board. Notwithstanding 10 V.S.A. § 312, amounts above $13,171,180 from the property transfer tax that are deposited into the Vermont housing and conservation trust fund shall be transferred into the general fund. (3) The sum of $3,939,566 is appropriated from the municipal and regional planning fund. Notwithstanding 24 V.S.A. § 4306(a), amounts above $3,939,566 from the property transfer tax that are deposited into the municipal and regional planning fund shall be transferred into the general fund. The $3,939,566 shall be allocated as follows: (A) The sum of $2,757,696 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b); (B) The sum of $787,913 for disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b); (C) information. The sum of $393,957 to the Vermont center for geographic (b) Property transfer tax revenues in fiscal year 2006 shall be distributed pursuant to 32 V.S.A §§ 435(b)(10) and 9610(c), 10 V.S.A. § 312, and 24 V.S.A. § 4306(a) and transferred into the general fund consistent with the provisions of subsection (a) of this section, except that any property transfer tax revenues above $39,801,000, not to exceed $2,500,000, shall be deposited into the Vermont housing and conservation trust fund and appropriated to the Vermont housing and conservation trust board. SATURDAY, JUNE 4, 2005 1467 (c) In fiscal year 2007, the appropriations in subdivisions (a)(1)-(3) of this section shall increase by 4.5 percent. Sec. 254. TRANSPORTATION FUND TRANSFER (a) The amount of $800,000 is transferred from the transportation fund to the downtown transportation and related capital improvement fund established by 24 V.S.A. § 2796 to be used by the Vermont downtown development board for the purposes of the fund. Sec. 255. FISCAL YEAR 2005 GENERAL FUND APPROPRIATIONS AND TRANSFERS (a) In fiscal year 2005, the following amounts are appropriated or transferred from the general fund: (1) The sum of $10,000,000 is transferred from the general fund to the health access trust fund. (2) The sum of $6,220,000 is appropriated to the department of education for state aid for school construction projects pursuant to 16 V.S.A. § 3448 as set forth in Sec. 6 of H.518 of 2005 (the capital construction act of the 2005 session). For the purposes of 32 V.S.A. § 308, this appropriation shall be considered to be made in fiscal year 2006. (3) The sum of $300,000 is appropriated to the department of corrections for expenses related to the former Windsor prison site. (4) The sum of $200,000 is appropriated to the department of taxes for fiscal year 2006 PILOT payments in addition to funds appropriated in Sec. 50 of this act. (5) The sum of $80,000 is appropriated to the department for children and families for a grant to spectrum youth and family services for the downtown education program. (6) The sum of $55,000 is appropriated to the secretary of state. $10,000 or so much thereof as may be necessary to assist in covering the costs of hiring a licensed land surveyor to conduct a survey of a portion of the boundary between the towns of Burke and Kirby. $45,000 or so much thereof as may be necessary, to assist in covering the costs of hiring a licensed land surveyor who shall conduct a survey of the boundary between the towns of Bakersfield and Fairfield. The general assembly intends that the boundary lines be located and established according to surveys to be conducted by a licensed land surveyor who shall be hired and directed by the secretary of state. Upon completion, the results of the surveys shall be filed with the secretary of state. 1468 JOURNAL OF THE SENATE (7) The sum of $1,964,000 is appropriated for the purposes of achieving health care reform as follows: (A) $725,000 to the legislature as follows: $325,000 to support the activities of the legislative commission on health care reform as established by Sec. 277c of this act; $325,000 for studies as required by Sec. 277d of this act; and $75,000 for health care reform public information and outreach activities of the legislature as described in Sec. 277e of this act. (B) $1,039,000 to the office of Vermont health access to fund the Vermont Blueprint for Health: The Chronic Care Initiative. The goals of the initiative are to: (1) implement a statewide system of care that enables Vermonters with, and at risk for, chronic disease to lead healthier lives; (2) develop a system of care that is financially sustainable; and (3) forge a publicprivate partnership to develop and sustain the new system of care. On or before January 1, 2006, and annually thereafter, the director of the office of Vermont health access, in consultation with the commissioner of health, shall file a report with the general assembly detailing progress made in reaching these three goals. (C) $200,000 to the department of taxes to assist with implementation expenses for the payroll tax included in H.524. In the event that H.524 is not enacted by July 15, 2005 the funds appropriated in this subdivision shall be appropriated as follows: $100,000 to the department of health for additional grants consistent with the requirements of Sec. 277f of this act, $50,000 to the department of health for additional grants for the development and implementation of 340B pharmaceutical services, and the remaining $50,000 to the legislature for related standing committee expenses. Sec. 256. 32 V.S.A. § 308c is added to read: § 308c. GENERAL FUND AND TRANSPORTATION FUND SURPLUS RESERVES (a) There is hereby created within the general fund a general fund surplus reserve. Monies from this reserve shall not be expended except by specific appropriation of the general assembly. (b) There is hereby created within the transportation fund a transportation fund surplus reserve. Monies from this reserve shall not be expended except by specific appropriation of the general assembly. (c) The general fund surplus reserve created in subsection (a) of this section shall supersede and replace the general fund surplus reserve established in Sec. 277(5) of No. 147 of the Acts of the 1997 Adj. Sess. (1998), as amended by Sec. 88 of No. 1 of the Acts of 1999. SATURDAY, JUNE 4, 2005 1469 Sec. 257. TRANSPORTATION; CONTINGENCY APPROPRIATION AUTHORITY (a) Subject to approval by a special committee consisting of the legislative joint fiscal committee and the chairs of the house and senate committees on transportation, the secretary of administration is authorized to transfer up to $5,000,000 in general funds from the general fund surplus reserve, established pursuant to 32 V.S.A. § 308c(a), to the transportation fund, and that amount of transportation funds is appropriated to the agency of transportation. The special committee approval shall be based on the following: (1) Passage of the federal “Safe, Accountable, Flexible, and Efficient Transportation Equity Act” (SAFETEA) with the result of additional federal funds available for Vermont; (2) A finding by the secretary of administration and a determination by the special committee that: (A) The general fund surplus reserve has sufficient funds; (B) Insufficient state funds have been appropriated for a match to transportation projects that could be done in state fiscal year 2006; (C) Funding additional projects prior to awaiting the budget adjustment process is in the best interests of Vermont; and (D) The general fund budget adjustment needs will be able to be addressed with remaining or other funds. Sec. 258. [Deleted] Sec. 259. [Deleted] Sec. 260. [Deleted] Sec. 261. PERSONNEL EXPENDITURES GROWTH ANALYSIS (a) As part of the governor’s budget presentation, the administration shall include a comparative analysis of the growth of payroll by fund over the past three years and the growth rates of the source fund. Where payroll is growing faster than fund growth, the administration shall provide an explanation for such growth and its impact on future budgets. Sec. 262. IN-DEPTH BUDGETING PILOT PROGRAM (a) As part of the fiscal year 2007 budget development process, the commissioner of finance and management shall select up to two departments to undergo an in-depth budget review. The commissioner’s choices of agencies to be reviewed shall be submitted for comment to the joint fiscal committee at 1470 JOURNAL OF THE SENATE its July 2005 meeting. Said review(s) when completed shall be submitted in writing no later than January 20, 2006 to the house and senate committees on appropriations along with the governor’s budget proposal. The review shall examine all aspects of the department activities as to mission, goals, and performance measures, the various financial and budgetary systems in place, and specifically shall: (1) Review department organization and finances for the effectiveness of achieving its mission. (2) Evaluate whether there are any measures and specific measurable evidence of the value of the department’s programs and expenditures. (3) Assess the costs and benefits that would occur if a portion of the funds spent were used for other programs that could reduce demand for the department’s services. Sec. 263. FISCAL YEAR 2005 DESIGNATED BALANCE (WATERFALL) (a) At the close of fiscal year 2005, the fiscal year 2005 unreserved and undesignated general fund balance on a budgetary basis, as determined by the commissioner of finance and management on or before July 31, 2005, in order to the extent funds are available: (1) First, shall be transferred to the general fund budget stabilization reserve to the extent necessary to attain its statutory maximum; (2) Second, shall be transferred to the transportation fund budget stabilization reserve to the extent necessary to attain its statutory maximum after the application of 32 VSA § 308a; (3) Third, $1,300,000 shall be appropriated to the agency of human services for Vermont state hospital expenditures in fiscal year 2006; (4) Fourth, up to $3,415,000 shall be appropriated as necessary to the secretary of administration to ensure that said amount is available for fiscal year 2006 general fund pay act obligations. This appropriation shall be made only to the extent necessary to make up the difference from the above amount and that amount appropriated under Sec. 264(a)(2) of this act [fiscal year 2006 contingent appropriation]. (5) Fifth, up to $17,000,000 shall be transferred as necessary to the Vermont health access trust fund to ensure that said amount is available for fiscal year 2006 general fund obligations. This transfer shall be made only to the extent necessary to make up the difference from the above amount and that amount appropriated under Sec. 264(a)(3) of this act [fiscal year 2006 contingent appropriation]. SATURDAY, JUNE 4, 2005 1471 (b) To the extent additional funds are available; $21,096,000 shall be appropriated and transferred to the health access trust fund for the following: (1) First, $14,347,000 to offset postponement of the second disproportionate share payment until fiscal year 2007; and (2) Second, $6,749,000 to provide additional resources for Medicaid expenditures. (c) To the extent additional funds are available $6,824,000 shall be appropriated to the following: (1) First, $4,000,000 to the state teachers’ retirement fund. (2) Second, $2,043,000 to the department of education for state aid for school construction projects pursuant to 16 V.S.A. § 3448 as set forth in Sec. 6 of H.518 of 2005 (the capital construction act of the 2005 session). For the purposes of 32 V.S.A. § 308, this appropriation shall be considered to be made in fiscal year 2006. (3) Third, $250,000 to the department of education for adult education one-time transition costs. (4) Fourth, $531,000 to the department of education for transfer to the department of corrections as needed for special education program expenses. The department of corrections with the department of education shall develop a plan for special education within its corrections system high school program. The plan shall include spending targets and budgets, a description of how short-term and longer-term youth inmates’ needs are to be addressed, and the specific measurable outcomes on which the system will be evaluated. The departments shall submit the plan to the house and senate committees on appropriations and education on or before December 15, 2005. (d) To the extent additional funds are available, $1,325,000 shall be appropriated for the following: (1) First, $250,000 to the department of health for area health education center activities. (2) Second, $300,000 to the Vermont training program. (3) Third, $75,000 to the department of economic development for grants to regional development corporations. (4) Fourth, $450,000 to the department of environmental conservation for stormwater contracts. (5) Fifth, $250,000 to the department of aging and independent living for grants to area agencies on aging. 1472 JOURNAL OF THE SENATE (e) To the extent additional funds are available, $1,525,000 shall be appropriated as follows for health care reform related initiatives: (1) First, $25,000 to the legislature for interim committee meetings on health care reform. (2) Second, $200,000 to the department of health for use as an additional appropriation to fund free clinics. (3) Third, $700,000 to the department of banking, insurance, securities, and health care administration to carry out the purposes of Sec. 277 of this act, adding 18 V.S.A. § 9417, of which $500,000 is for dollar-for-dollar matching funds to leverage resources necessary to fund the pilot program authorized under subsection 9417(e) of Title 18 and to contract for the development of the health information technology plan and other duties in 18 V.S.A. §9417. (4) Fourth, $200,000 to the department of health for the purpose of providing grants consistent with the provisions of Sec. 277f of this act for federally qualified health center (FQHC) look-alikes. (5) Fifth, $50,000 to the department of health, $20,000 of which shall be used for a grant to the bi-state primary care association for activities related to Vermont FQHC’s and the remainder for grants for the development and implementation of 340B pharmaceutical services. (6) Sixth, $350,000 to the department of health for a pilot program to provide training and capitated payment to primary care physicians treating Medicaid patients with substance abuse diagnoses. (f) To the extent additional funds are available, $200,000 shall be transferred to the emergency relief and assistance fund, which amount is hereby authorized for expenditure by the agency of transportation as state match to municipalities for FEMA public assistance disasters. (g) To the extent additional funds are available, $1,930,000 is appropriated as follows: (1) $500,000 to the secretary of administration to be utilized at the secretary’s discretion for projects including: a) department of taxes to fund preliminary work in creating an automated corporate tax filing system, and b) to the agency of natural resources for a “permit on web” initiative. The legislature’s goal for this initiative is to begin the functional process of bringing transparency and efficiency to the application, processing, and review process. (2) $350,000 to the defender general for upgrading the departmental computer systems. SATURDAY, JUNE 4, 2005 1473 (3) $95,000 to the joint fiscal committee, $80,000 for budget system integration to be developed with consultation of the legislative information technology staff, and $15,000 to be available for transfer to the department of taxes for tax expenditure reporting obligations. (4) $150,000 to the department of public safety for vehicle replacement. (5) $150,000 to the department of health for replacement of datamaster units in the forensic alcohol program. (6) $50,000 to the department of buildings and general services for a direct grant to the Northeast Kingdom Human Services Incorporated for building construction in St. Johnsbury. (7) $50,000 to the department for children and families for the category II rental and mortgage arrearage assistance program. (8) $25,000 to the office of military and veterans affairs for a grant for the purchase of vans for the disabled American veteran’s transportation network. (9) $25,000 to the legislature for requirements under Sec. 205c of this act. (10) $50,000 to the department of health for nursing loan repayment for nursing faculty. These funds shall be used to provide education loan forgiveness or repayment of that debt of up to $10,000.00 per year of service on the nursing faculty of Castleton State College, Norwich University, Vermont Technical College, Southern Vermont College, or the University of Vermont. Eligibility is for nurses with outstanding educational debt acquired in pursuit of an advanced nursing degree provided he or she either incurred such debt after July 1, 2005 or was first employed on the nursing faculty after July 1, 2005. Eligibility for this program shall be determined by the department of health, in consultation with schools, providers and the Area Health Education Center (AHEC). The commissioner may require certification of compliance with this subsection prior to making an award. In addition, the educational debt forgiveness or repayment program shall be administered in such a way as to comply with the requirements of Section 108(f) of the Internal Revenue Code. (11) $5,000 to the Vermont veterans home for a therapeutic exercise pool study. The Vermont veterans home shall study adding a physical therapy exercise pool to the facility. The home shall study issues of space, access, and its complementary nature to other home activities. Said funds shall be used for the study, with any remainder being held for eventual purchase. 1474 JOURNAL OF THE SENATE (12) $50,000 to the office of economic opportunity for a grant to the community action agencies for individual development accounts (13) $10,000 to the department of public service to be used for a grant to the Vermont public power supply authority to study the viability of a farm methane renewable energy generation project in Enosburg Falls. (14) $200,000 to the department of fish and wildlife for Camp Kehoe capital needs. (15) $10,000 to the Vermont humanities council as a contribution toward the purchase of a building. (16) $25,000 to the Vermont symphony orchestra for the musical instrument purchase program for a concert grand Steinway piano. (17) $50,000 to the secretary of administration for grants to regional marketing programs. These grants shall be distributed in the same manner as other regional marketing grants made by the secretary. (18) $75,000 to the department for children and families for the building bright spaces for bright futures fund. (19) $60,000 to the legislative council for dairy policy contract consultant services. These funds are for the sole purpose of retaining a consultant and supporting activities for the promotion of dairy price enhancement through interstate action. The consultant shall be retained and associated expenditures made at the direction of the chairs of the senate and house committees on appropriations and the chairs and vice chairs of the senate and house committees on agriculture, respectively, with the approval of the president pro tempore of the senate and the speaker of the house. Additional expenditures for this purpose may be made from funds appropriated to the general assembly with the approval of the president pro tempore of the senate and the speaker of the house. (h) For the purposes of securing a line of credit with the Vermont economic development authority, private non-profit “program for all-inclusive care for the elderly” (PACE) programs shall be considered an “eligible project” as defined under 10 V.S.A. chapter 12 § 212(6). Notwithstanding the foregoing, the extension of loans or mortgage insurance pursuant to 10 V.S.A. chapter 12 shall be upon such terms and conditions as the authority may prescribe, including those findings required under 10 V.S.A. chapter 12. VEDA shall consider such a guarantee prior to July 31, 2005. $605,000 shall be appropriated to the office of Vermont health access to provide capitalization grants for Vermont-based PACE centers if the PACE program does not qualify for such a guarantee. SATURDAY, JUNE 4, 2005 1475 (i) Any remaining funds shall be held in the general fund surplus reserve for appropriation during the budget adjustment process. Sec. 264. FISCAL YEAR 2006 CONTINGENT APPROPRIATIONS AND TRANSFERS (a) In the event the official 2006 fiscal year revenue forecast for the available general fund adopted by the emergency board at its July 2005 meeting exceeds $1,015,612,000, not including the first $1,020,000 of any increase attributable to the property transfer tax revenue growth, in excess of the official forecast of January 14, 2005: (1) First, in accordance with Sec. 272 of this act, additional payments of interest received during fiscal year 2006 from the Vermont economic development authority upon the authority’s note to the state dated May 15, 2003, shall be paid into the VEDA indemnification fund created in 10 V.S.A. § 222a. (2) Second, to the extent the forecast is exceeded, up to $3,415,000 is appropriated to the secretary of administration to fund fiscal year 2006 general fund pay act obligations. (3) Third, to the extent the forecast is exceeded, up to $17,000,000 is appropriated to the health access trust fund and shall be considered a “base appropriation” to fund fiscal year 2006 Medicaid obligations. (4) Fourth, to the extent the forecast is exceeded, up to $3,400,000 is appropriated to the tax department to supplement funds in Sec. 173 tax department - property tax assistance, to meet income sensitivity needs in fiscal year 2006. (b) Any remaining funds after subsection (a) above shall be reserved for appropriations during the fiscal year 2006 budget adjustment process. Sec. 264a. PAY ACT FUNDING (a) In the event that the general fund pay act amount of $3,415,000 is not fully funded in subdivisions 263(a)(3) and 264(a)(2) of this act, the emergency board at its July 2005 meeting shall use its transfer authority to ensure that sufficient funds are available to fully fund the pay act general fund appropriation. Sec. 265. BALANCE FISCAL YEAR 2006 TOBACCO SETTLEMENT FUND (a) Notwithstanding 18 V.S.A. § 9502(b), in fiscal year 2006, the balance in the tobacco litigation settlement fund shall remain in the tobacco litigation settlement fund. 1476 JOURNAL OF THE SENATE Sec. 266. TRANSFER OF TOBACCO TRUST FUNDS (a) Notwithstanding 18 V.S.A. § 9502(a)(3), at the close of fiscal year 2006, the secretary of administration may transfer funds from the tobacco trust fund to the tobacco litigation settlement fund established in 32 V.S.A. § 435a in an amount needed to bring the ending balance of the tobacco litigation settlement fund to $0.00 for fiscal year 2006, but the amount transferred may not exceed the amount withheld from the payment to Vermont by participating manufacturers due in April 2006 under the Master Tobacco Settlement Agreement. Upon release and deposit of the withheld funds into the tobacco litigation settlement fund, an amount equal to the amount transferred under this provision shall be returned to the tobacco trust fund. (b) This section shall not expire June 30, 2006. Sec. 267. 16 V.S.A. § 2969 is amended to read: § 2969. PAYMENTS *** (b) Reimbursements under sections 2962 and 2963 of this title and for state-placed students under section 2950 of this title for expenditures for the final period of any fiscal year shall be paid from the available funds appropriated for that fiscal year and shall be encumbered for that purpose. (c)(b) For the purpose of meeting the needs of students with emotional behavioral problems, each fiscal year the commissioner shall use for training, program development, and building school and regional capacity, up to one percent of the state funds appropriated under this subchapter. (d)(c) Each fiscal year the commissioner shall use for the training of teachers, administrators and other personnel in the identification and evaluation of, and provision of education services to children who require educational supports, up to 0.75 percent of the state funds appropriated under this subchapter. In order to set priorities for the use of these funds, the commissioner shall identify effective practices and areas of critical need. The commissioner may expend up to five percent of these funds for statewide training and shall distribute the remaining funds to school districts or supervisory unions. School districts and supervisory unions that apply for funds under this section must submit a plan for training which will result in lasting changes in their school systems and give assurances that at least 50 percent of the costs of training including in-kind costs will be assumed by the applicant. The commissioner shall establish written procedures and criteria for the award of such funds. In addition, the commissioner may identify schools most in need of training assistance and may pay for 100 percent of help provided to these schools. SATURDAY, JUNE 4, 2005 1477 Sec. 268. 8 V.S.A. § 80 is amended to read: § 80. INSURANCE REGULATORY AND SUPERVISION FUND *** (b) Annually, $30,000.00 shall be transferred from the fund to the fire service training council special fund established in 20 V.S.A. § 3157. (b)(c) At the end of each fiscal year, the balance in the insurance regulatory and supervision fund shall be transferred to the general fund. (c)(d) The commissioner of finance and management may anticipate receipts to the insurance regulatory and supervision fund and issue warrants based thereon. Sec. 269. 20 V.S.A. § 3157 is amended to read: § 3157. FIRE SERVICE TRAINING COUNCIL SPECIAL FUND The fire service training council special fund is established. The fund shall be administered by the commissioner of public safety from which payments may be made to support training programs and activities authorized by this chapter, maintenance and operation of any permanent training facilities operated by the council, and the administrative expenses of the council. The fund shall consist of all monies received from tuitions, contributions, capital grants, or other funds received by the council, transfers from the insurance regulatory and supervision fund under subsection 80(b) of Title 8, and assessments of insurance companies under subsection 8557(a) of Title 32, together with monies appropriated to the fund. Monies remaining in the fund at the end of any fiscal year shall be carried forward and remain in the fund. Disbursement from the fund shall be made by the state treasurer on warrants drawn by the commissioner of finance and management. Sec. 270. 32 V.S.A. § 588(4)(A) is amended to read: (A) All monies to be expended from a special fund shall be appropriated annually by the general assembly, or allocated pursuant to the authority granted by the general assembly to the secretary of administration with regard to excess receipts, except when the state responsibility relative to the special fund is solely for the transference of monies between nonstate entities as determined by the commissioner. No appropriation authorization shall carry forward beyond the fiscal year for which it was granted, except for properly encumbered payments and refunds of prior year expenditures. 1478 JOURNAL OF THE SENATE Sec. 271. REPEAL (a) 16 V.S.A. § 2362 (commissioner of finance and management payments for medical students) is repealed. Sec. 272. Sec. 87f of No. 6 of the Acts of 2005 is amended to read: Sec. 87f. VEDA; INDEMNIFICATION FUND CAPITALIZATION (a) $100,000.00 of the payments of interest received annually during fiscal years 2005, 2006 and 2007 from the Vermont economic development authority upon the authority’s note to the state dated May 15, 2003, shall be paid into the VEDA indemnification fund created in 10 V.S.A. § 222a. (a) Capitalization of the indemnification fund created in 10 V.S.A. § 222a is from the annual interest received from the Vermont economic development authority upon the authority’s note to the state dated May 15, 2003 as follows: (1) In fiscal years 2005 and 2006, $100,000 of the payments of interest received shall be paid into the indemnification fund. (2) In fiscal year 2006, if the available general fund forecast for fiscal year 2006 adopted by the emergency board at its July 2005 meeting exceeds $1,015,612,000, additional interest payments received for fiscal year 2006 shall be paid into the indemnification fund. (3) In fiscal year 2007 and thereafter, the annual interest received shall be paid into the indemnification fund. Sec. 273. 16 V.S.A. § 2885 is amended to read: § 2885. VERMONT HIGHER EDUCATION TRUST FUND *** (c) In August of each fiscal year, beginning in the year 2000, the state treasurer shall withdraw and divide an amount equal to five percent of the assets equally among the University of Vermont, the Vermont state colleges, and the Vermont student assistance corporation. In this subsection, “assets” means the average of the fund’s market values at the end of each quarter for the most recent 12 quarters, or all quarters of operation, whichever is less. Therefore, up to five percent of the fund assets are hereby annually appropriated allocated pursuant to this section, provided that the amount appropriated allocated shall not exceed an amount which would bring the fund balance below the initial appropriation funding made in fiscal year 2000 plus any additional contributions to the principal. The University of Vermont and the Vermont state colleges shall use the funds to provide nonloan financial aid to Vermont students attending their institutions; the Vermont student SATURDAY, JUNE 4, 2005 1479 assistance corporation shall use the funds to provide nonloan financial aid to Vermont students attending a Vermont postsecondary institution. (d) In August During the first quarter of each fiscal year, beginning in the year 2000, the commission on higher education funding may authorize the state treasurer to make an amount equal to up to two percent of the assets available to Vermont public institutions for the purpose of creating or increasing a permanent endowment. In this subsection, “assets” means the average of the fund’s market values at the end of each quarter for the most recent 12 quarters, or all quarters of operation, whichever is less. Therefore, up to two percent of the fund assets are hereby annually appropriated allocated pursuant to this section, provided that the amount appropriated allocated shall not exceed an amount which would bring the fund balance below the initial appropriation funding made in fiscal year 2000 plus any additional contributions to the principal. One-half of the amount appropriated allocated shall be available to the University of Vermont and one-half shall be available to the Vermont state colleges. The University of Vermont or Vermont state colleges may withdraw funds upon certification by the withdrawing institution to the commissioner of finance and management that it has received private donations which are double the amount it plans to withdraw. *** Sec. 274. [Deleted] Sec. 275. [Deleted] Sec. 276. WORKING GROUP ON GROWTH CENTERS (a) A legislative working group on growth centers is established to develop proposed legislation to support mixed use development in designated growth centers through local, regional, and state planning, regulatory reforms, and public investment financial incentives. The working group shall also examine public and private costs associated with development including issues related to agricultural lands mitigation under Act 250. In addition to other information, the working group shall consider the Report of the Governor's Committee on Downtowns and Growth Centers, the planning report of the Vermont Council on Rural Development, the Downtown Development Act, and the provisions of 24 V.S.A. Chapter 117. (b) The working group shall consist of ten members: five members of the senate, appointed by the committee on committees, three coming from the membership of the committee on natural resources and energy, and one each from the membership of the committee on agriculture and the committee on economic development, housing and general affairs; and five members of the house appointed by the speaker, one from the committee on natural resources 1480 JOURNAL OF THE SENATE and energy, one from the committee on agriculture, one from the committee on commerce, one from the committee on transportation and one from the committee on appropriations. The working group shall be entitled to meet six times during the 2005 interim. Members of the working group shall be entitled to compensation and expenses as provided in 32 V.S.A. § 1052. The legislative council and joint fiscal office shall provide professional and clerical services to the working group, and the resources of the executive branch shall be available to the working group as required. The report of the working group shall be presented to the general assembly in the form of draft legislation on or before January 15, 2006. Sec. 277. 18 V.S.A. § 9417 is added to read: § 9417. HEALTH INFORMATION TECHNOLOGY (a) The commissioner shall facilitate the development of a statewide health information technology plan that includes the implementation of an integrated electronic health information infrastructure for the sharing of electronic health information among health care facilities, health care professionals, public and private payers, and patients. The plan shall include standards and protocols designed to promote patient education, patient privacy, physician best practices, electronic connectivity to health care data, and, overall, a more efficient and less costly means of delivering quality health care in Vermont. (b) The health information technology plan shall: (1) support the effective, efficient, statewide use of electronic health information in patient care, health care policymaking, clinical research, health care financing, and continuous quality improvements; (2) educate the general public and health care professionals about the value of an electronic health infrastructure for improving patient care; (3) promote the use of national standards for the development of an interoperable system, which shall include provisions relating to security, privacy, data content, structures and format, vocabulary, and transmission protocols; (4) propose strategic investments in equipment and other infrastructure elements that will facilitate the ongoing development of a statewide infrastructure; and (5) recommend funding mechanisms for the ongoing development and maintenance costs of a statewide health information system. (c) The commissioner shall contract with the Vermont information technology leaders (VITL), a broad-based health information technology advisory group that includes providers, payers, employers, patients, health care SATURDAY, JUNE 4, 2005 1481 purchasers, information technology vendors, and other business leaders, to develop the health information technology plan, including applicable standards, protocols, and pilot programs. In carrying out their responsibilities under this section, members of VITL shall be subject to conflict of interest policies established by the commissioner in the certificate of need regulations to ensure that deliberations and decisions are fair and equitable. (d) The following persons shall be members of VITL: (1) the commissioner of information and innovation, who shall advise the group on technology best practices and the state’s information technology policies and procedures, including the need for a functionality assessment and feasibility study related to establishing an electronic health information infrastructure under this section; (2) the director of the office of Vermont health access or his or her designee; and (3) the commissioner or his or her designee. (e) On or before July 1, 2006, VITL shall initiate a pilot program involving at least two hospitals using existing sources of electronic health information to establish electronic data sharing for clinical decision support, pursuant to priorities and criteria established in conjunction with the health information technology advisory group. Objectives of the pilot program may include: (1) supporting patient care and improving quality of care; (2) enhancing productivity of health care professionals and reducing administrative costs of health care delivery and financing; (3) determining whether and how best to expand the pilot program on a statewide basis; (4) implementing strategies for future developments in health care technology, policy, management, governance, and finance; and (5) ensuring patient data confidentiality at all times. (f) The standards and protocols developed by VITL shall be no less stringent than the “Standards for Privacy of Individually Identifiable Health Information” established under the Health Insurance Portability and Accountability Act of 1996 and contained in 45 C.F.R., Parts 160 and 164, and any subsequent amendments. In addition, the standards and protocols shall ensure that there are clear prohibitions against the out-of-state release of individually identifiable health information for purposes unrelated to treatment, payment, and health care operations, and that such information shall under no circumstances be used for marketing purposes. The standards and protocols 1482 JOURNAL OF THE SENATE shall require that access to individually identifiable health information is secure and traceable by an electronic audit trail. (g) On or before January 1, 2007, VITL shall submit to the commissioner, the commissioner of information and innovation, the director of the office of Vermont health access, and the general assembly a health information technology plan for establishing a statewide, integrated electronic health information infrastructure in Vermont, including specific steps for achieving the goals and objectives of this section. The plan shall include also recommendations for self-sustainable funding for the ongoing development, maintenance, and replacement of the health information technology system. Upon recommendation by the commissioner and approval by the general assembly, the plan shall serve as the framework within which certificate of need applications for information technology are reviewed under section 9440b of this title by the commissioner. (h) Beginning January 1, 2006, and annually thereafter, VITL shall file a report with the commissioner, the commissioner of information and innovation, the director of the office of Vermont health access, and the general assembly. The report shall include an assessment of progress in implementing the provisions of this section, recommendations for additional funding and legislation required, and an analysis of the costs, benefits, and effectiveness of the pilot program authorized under subsection (e) of this section, including, to the extent these can be measured, reductions in tests needed to determine patient medications, improved patient outcomes, or reductions in administrative or other costs achieved as a result of the pilot. In addition, VITL shall file quarterly progress reports with the health access oversight committee and shall publish minutes of VITL meetings and any other relevant information on a public website. (i) VITL is authorized to seek matching funds to assist with carrying out the purposes of this section. In addition, it may accept any and all donations, gifts, and grants of money, equipment, supplies, materials, and services from the federal or any local government, or any agency thereof, and from any person, firm, or corporation for any of its purposes and functions under this section and may receive and use the same subject to the terms, conditions, and regulations governing such donations, gifts, and grants. (j) The commissioner, in consultation with VITL, may seek any waivers of federal law, rule, or regulation that might assist with implementation of this section. Sec. 277a. 18 V.S.A. § 9437(4) and (5) are amended and (6) is added to read: (4) in the case of a proposal for the addition of beds for the provision of skilled nursing or intermediate care, the number of beds to be approved is not SATURDAY, JUNE 4, 2005 1483 inconsistent with the considerations identified under subsection 9439(e) of this title; and (5) The the proposed new health care project is consistent with the certificate of need guidelines published by the department in accordance with its rules, and is within the portion of the unified health care budget applicable to the proposed health care facility; and (6) if the application is for the purchase or lease of new health care information technology, it conforms with the health information technology plan established under section 9417 of this title, upon approval of the plan by the general assembly. Sec. 277b. 18 V.S.A. § 9440b is added to read: § 9440b. INFORMATION TECHNOLOGY; REVIEW PROCEDURES Notwithstanding the procedures in section 9440 of this title, upon approval by the general assembly of the health information technology plan developed under section 9417 of this title, the commissioner shall establish by rule standards and expedited procedures for reviewing applications for the purchase or lease of health care information technology that otherwise would be subject to review under this subchapter. Such applications may not be granted or approved unless they are consistent with the health information technology plan and the health resource allocation plan. The commissioner’s rules may include a provision requiring that applications be reviewed by the health information advisory group authorized under subsection 9417(c) of this title. The advisory group shall make written findings and a recommendation to the commissioner in favor of or against each application. Sec. 277c. COMMISSION ON HEALTH CARE REFORM (a) There is established a commission on health care reform. The commission, under the direction of co-chairs who shall be appointed by the speaker of the house and president pro tempore of the senate, shall monitor health care reform and recommend to the general assembly actions needed to attain the health care guidelines and goals set out in H.524 as passed by the house and senate. (b) Members of the commission shall include four representatives appointed by the speaker of the house, four senators appointed by the committee on committees, and two nonvoting members appointed by the governor. (c) Beginning in the interim of the 2005 legislative session through July 1, 2009, the commission shall: 1484 JOURNAL OF THE SENATE (1) identify and report emerging trends and behaviors among various participants in the health care system; (2) assess the effectiveness of cost-containment and quality of care initiatives; (3) establish recommendations to the general assembly for demonstration or pilot projects designed to contain health care costs, improve the quality of health care, and to integrate systems of care that promote: community-based evaluation and planning, improved financial management, information technology systems that advance the management and coordination of health care, governance models at the community level, and patient responsibility for and participation in health care decision making; (4) direct the studies established under Sec. 277d of this act; (5) develop a plan for creating an integrated, regional delivery system and developing integrated systems of care that: (1) reorganize the health care delivery system to improve coordination, reduce medical errors, and reduce redundant or unnecessary care, (2) improve the quality of care in terms of process and outcomes, and (3) encourage alternative reimbursement mechanisms based on outcome-based payments to change the incentives for health care professionals and to control health care costs; (6) make recommendations to the general assembly for a program to provide matching grants for long-term investments in health care systems, technology, and infrastructure in a manner that promotes the establishment of integrated systems of care; (7) assess the feasibility of: (A) a publicly financed stop-loss insurance policy for all health plans doing business in Vermont; (B) a public health care program that incorporates the health benefits covered under workers’ compensation policies; (C) tort reform consistent with the findings and recommendations of the medical malpractice study authorized under Sec. 292 of No. 122 of the Acts of the 2003 Adj. Sess (2004); and (D) a health care purchasing pool as described in Sec. 26 of H.524 as passed by the house and senate; (8) recommend alternative reimbursement mechanisms for health services that encourage cost effectiveness, improve the quality of care, increase efficiency, reward primary care practices that prevent chronic illnesses, avoid preventable hospitalizations, and reduce long-term costs to the SATURDAY, JUNE 4, 2005 1485 system, including a global hospital payment to each hospital. For the purposes of this section, “global hospital payment” means an amount to be paid to a hospital by each health insurer, employer or the state for services received at that hospital by all individuals covered by a health benefit plan offered by or through that insurer, employer or the state. A global hospital payment may be accomplished through negotiations between insurers or employers and hospitals, by requiring all public and private health insurers to pay for hospital services using this method to the extent permitted under federal law, or by another mechanism; (9) receive input and make recommendations, generally, to the house committees on health care and ways and means, the senate committees on health and welfare and finance and the general assembly regarding the longterm development of policies and programs designed to ensure that, by 2009, Vermont has an integrated system of care that provides all Vermonters access to affordable, high quality health care that is financed in a fair and equitable manner; and (10) cooperate and coordinate with the public engagement process established in Sec. 277e of this act to receive public input on a health care reform plan. (d) The commission shall select, subject to final approval by the speaker of the house and the president pro tempore of the senate, the services of one fulltime director and such other staff as is needed, and shall receive administrative, fiscal, and legal support from the joint fiscal office and the legislative council. The director shall have expertise in finance, planning, systems analysis, and processes involving weighing competing interests among parties. In addition, with the approval of the speaker of the house and the president pro tempore of the senate, the commission may retain the services of one or more consultants or experts knowledgeable in health care systems, financing, or delivery to assist in its work and may request funding from the legislative budget. (e) The commission may request analysis from the office of Vermont health access, the department of banking, insurance, securities, and health care administration, and other appropriate agencies. The agencies shall report to the commission at such times and with such information as the commission determines is necessary to fulfill its oversight responsibilities. (f) The commission may meet as needed and members shall be entitled to compensation and expenses as provided in 2 V.S.A. § 406. (g) The department of buildings and general services shall provide the commission with office space near the state capitol building in Montpelier for three individuals. 1486 JOURNAL OF THE SENATE (h) To staff this commission, the legislature is authorized to establish three (3) new exempt positions – one (1) commission director and two (2) commission research/support staff in fiscal year 2005. Sec. 277d. HEALTH CARE REFORM; ECONOMIC, FINANCING, AND ADMINISTRATIVE STUDIES (a) In order to assess more fully the benefits and costs and to prepare and plan for the implementation of full and universal access to health care in Vermont, the commission on health care reform, in consultation with the department of banking, insurance, securities, and health care administration, shall direct that the following economic impact, financing, and governance studies be undertaken during the interim of the 2005 legislative session. The commission shall direct its staff or contract for one or more consultants to undertake the economic impact and financing studies authorized by this section. (1) Economic impact study. The economic impact study shall examine the impact of implementing a system of universal access to health care for Vermonters versus the effects of sustaining the current system impact on business and the labor force, the future growth of the economy and the economic competitiveness of Vermont, and the effects on residents and population groups and on current and potential insurers and providers of health care. (2) Financing options. The financing study shall examine the financing options that most effectively achieve the goal of universal access to health care and maintaining its affordability. The study shall include examination of all financing options and their implications, including the income tax, a payroll tax, premiums or cost-sharing measures, consumption taxes, specific more limited taxes to support parts of the health care system’s financial needs, and other revenue sources including insurance risk pools and insurance assistance and incentives. (A) The study shall reference the fact and supporting empirical evidence that many countries have achieved universal access and more affordable health care utilizing public financing as a tool to achieve this goal. The study shall consider the strengths and weaknesses of such public financing systems with respect to fairness and adequacy of funding, access to and quality of services. (B) The study shall examine how implementation of any public financing options will be offset in corresponding reductions in premiums, other taxes, and individual cost-sharing contributions. SATURDAY, JUNE 4, 2005 1487 (C) The study shall examine how any proposed changes in financing or delivery of health care could affect benefits Vermonters currently receive through Vermont employers. (D) The study shall address issues involved with federal law and taxation, including ERISA and other areas of preemption; technical proposals to exempt non-resident employees of Vermont businesses; a provision to ensure a soft landing for affected businesses and a recommendation as to the appropriate amount needed in a soft landing provision to mitigate negative effects on business; recommendations on the best method for unemployed individuals to contribute to the financing; a simplified structure based on employee numbers, employer payroll, or a combination for ease of administration and clarity; and the recommendations of the tax department. (E) The study shall analyze methods for recapturing insurance premiums as a result of any reductions in uncompensated care, such as the Dirigo model enacted in the state of Maine, any reductions in insurance premiums resulting from public financing, and for ensuring that all Vermonters contribute to the financing of health care’s fixed costs. (3) Governance and administrative study. The secretary of administration, in consultation with the office of Vermont health access, the department of banking, insurance, securities, and health care administration, and the agency of human services, shall examine and develop a plan for reorganizing their respective offices and functions to further full and universal access to health care in Vermont and the integration of the health care system. The recommendations shall include personnel, operations, and budgetary requirements and consider the most appropriate and efficient approach to integrating health care policy, planning, delivery, regulation, and defining clear lines of accountability within the health care system. The study shall include also an examination of means to coordinate or integrate a universal health care system with the current workers’ compensation system and the feasibility and merits of authorizing the state to act as an insurer in pooling risk and providing benefits, including a common benefits plan, to participants of the health care purchasing pool. (b) Reports, including findings and recommendations, from each study required by this section shall be submitted to the general assembly not later than January 15, 2006. Sec. 277e. PUBLIC ENGAGEMENT PROCESS (a) In recognition of the importance of public engagement, the house committee on health care and the senate committee on health and welfare shall have six public hearings during the interim of the 2005 legislative session to 1488 JOURNAL OF THE SENATE solicit input from citizens, employers, hospitals, health care professionals, insurers, other stakeholders, and interested parties about health care reform. (b) Throughout the interim, the commission on health care reform at the request of the chairs of the committees shall brief the committees on the commission’s activities and recommendations to date. (c) For attendance at meetings, committee members shall be entitled to compensation and expenses as provided in 2 V.S.A. § 406. Sec. 277f. FEDERALLY QUALIFIED HEALTH CENTERS (FQHC) LOOK-ALIKES; CAPITALIZATION GRANTS; CASE MANAGEMENT (a) Funds appropriated in Sec. 263(e)(4) of this act to the department of health shall be expended for the purpose of providing to federally qualified health center (FQHC) look-alikes funds for initial capitalization and to establish an income-sensitized sliding scale fee schedule for patients of these organizations. In distributing the grants, the department shall consider ensuring the geographic distribution of health centers around the state as well as criteria under federal law. Initial priority shall be given to health centers in Lamoille, Washington, and Windsor/Windham counties, and other counties that demonstrate readiness to achieve look-alike status. The goal shall be to ensure there are FQHC look-alikes in each county in Vermont. Sec. 278. PUBLICLY OPERATED MANAGED CARE ORGANIZATION (a) To enable the state to manage public resources effectively, while preserving and enhancing access to health care services in the state, the office of Vermont health access is authorized to serve as a publicly operated managed care organization (MCO). (b) As the publicly operated MCO, the office of Vermont health access shall be responsible for the overall management of the health care delivery system and for reimbursement of all eligible services as may be provided by state or federal law. (c) The office of Vermont health access shall be exempt from any health maintenance organization (HMO) or MCO statutes in Vermont law and shall not be considered to be an HMO or MCO for purposes of state regulatory and reporting requirements. (d) Upon approval of the global commitment by the federal Centers for Medicare and Medicaid Services and by the Vermont general assembly, the office of Vermont health access shall report to the health access oversight committee and the joint fiscal committee in a manner and at a frequency to be determined by the committees. Reporting shall, at a minimum, enable the tracking of expenditures by eligibility category, the type of care received, and SATURDAY, JUNE 4, 2005 1489 to the extent possible allow historical comparison with expenditures under the previous Medicaid appropriation model (by department and program) and, if appropriate, to the amounts transferred by the department to the office of Vermont health access. Reporting shall include spending in comparison to any applicable budget neutrality standards. (e) In the event the Global Commitment to Health section 1115a Demonstration Waiver is approved by the federal government and requires the creation of a new department, the governor shall create a new department, the department of health access (TDHA), an independent department within Vermont state government. The office of Vermont health access with its current duties will be subsumed by the department of health access. Sec. 279. VHAP PREMIUM ADJUSTMENTS Sec. 147(d) of No. 66 of the Acts of 2003, as amended by Sec. 129 of No. 122 of the Acts of the 2003 Adj. Sess. (2004), is further amended to read: (d) VHAP, premium-based. *** (2) The department agency shall establish per individual premiums for the VHAP Uninsured program for the following brackets of income for the VHAP group as a percentage of federal poverty level (FPL): (A) Income greater than 50 percent and less than or equal to 75 percent of FPL: $10.00 $11.00 per month. (B) Income greater than 75 percent and less than or equal to 100 percent of FPL: $35.00 $39.00 per month. (C) Income greater than 100 percent and less than or equal to 150 percent of FPL: $45.00 $50.00 per month. (D) Income greater than 150 percent and less than or equal to 185 percent of FPL: $65.00 $75.00 per month. Sec. 280. DR. DYNASAUR AND SCHIP PREMIUM ADJUSTMENTS Sec. 147(f) of No. 66 of the Acts of 2003 is amended to read: (f) Dr. Dynasaur and SCHIP premium changes. (1) The department agency is authorized to amend the rules for individuals eligible for Dr. Dynasaur under the federal Medicaid and SCHIP programs to require beneficiary households to pay a monthly premium based on the following: 1490 JOURNAL OF THE SENATE (A) for individuals living in households whose incomes are greater than 225 percent of FPL and less than or equal to 300 percent of FPL, and who have no other insurance coverage: $70.00 $80.00 per household per month. (B) for individuals living in households whose incomes are greater than 225 percent of FPL and less than or equal to 300 percent of FPL, and who have other insurance coverage: $35.00 $40.00 per household per month. (C) for individuals living in households whose incomes are greater than 185 percent of FPL and less than or equal to 225 percent of FPL: $25.00 $30.00 per household per month. *** Sec. 281. REPORTS ON DISENROLLMENT (a) The department for children and families and the office of Vermont health access shall monitor and evaluate and report quarterly beginning July 1, 2005 on the following: (1) The disenrollment in each of the programs subject to premiums; (2) The number of beneficiaries receiving termination notices for failure to pay premiums; (3) The number of beneficiaries terminated from coverage as a result of failure to pay premiums as of the second business day of the month following the termination notice. The number of beneficiaries terminated from coverage for nonpayment of premiums shall be reported by program and income level within each program; and (4) The number of beneficiaries terminated from coverage as a result of failure to pay premiums whose coverage is not restored three months after the termination notice. (b) The department and the office shall submit reports required by subsection (a) of this section to the house and senate committees on appropriations, the senate committee on health and welfare, the house committee on human services, the health access oversight committee, and the Medicaid advisory board at the end of each quarter. Sec. 282. 33 V.S.A. § 1950(a) and (b) are amended to read: (a) The purpose of this subchapter is to establish a revolving fund consisting of assessments from on health care providers, which funds shall be used in the state’s health care program in such a way as to be eligible for federal financial participation. SATURDAY, JUNE 4, 2005 1491 (b) The secretary and the commissioner director shall interpret and administer the provisions of this subchapter so as to maximize federal financial participation and avoid disallowances of federal financial participation. Sec. 283. 33 V.S.A. § 1951 is amended to read: § 1951. DEFINITIONS As used in this subchapter: (1) “Assessment” means a tax levied on a health care provider pursuant to this chapter. (2) “Commissioner” means the commissioner of prevention, assistance, transition, and health access, or a designee. (3) “Core home health care services” means those medically-necessary skilled nursing, home health aide, therapeutic, and persona1 care attendant services, provided exclusively in the home by home health agencies. Core home health services do not include private duty nursing, hospice, homemaker or physician services, or services provided under early periodic screening and, diagnostic services diagnosis, and treatment (EPSDT), traumatic brain injury (TBI), high technology programs, or services provided by a home for the terminally ill as defined in subdivision 7102(10) of this title. (4)(3) “Department” means the department of prevention, assistance, transition, and health access “Director” means the director of the office of Vermont health access. (5)(4) “Fund” means the Vermont health care access trust fund consisting primarily in part of assessments from health care providers under this subchapter. (6)(5) “Health care provider” means any hospital, nursing home, intermediate care facility for the mentally retarded, or home health agency, or retail pharmacy. (7)(6) “Home health agency” means an entity that has received a certificate of need from the state to provide home health services or is certified by the state to provide services pursuant to 42 U.S.C. § 1395x(o). (8)(7) “Hospital” means a hospital licensed under chapter 43 of Title 18. (9)(8) “Intermediate Care Facility for the Mentally Retarded” (“ICF/MR”) means a facility which provides long-term health related care to residents with mental retardation pursuant to section subdivision 1902(a)(31) of the Social Security Act (42 U.S.C. § 1396a(a)(31)). 1492 JOURNAL OF THE SENATE (10)(9) “Mental hospital” or “psychiatric facility” means a hospital as defined in 18 V.S.A. § 1902(a)(2) or (8) 18 V.S.A. § 1902(1)(B) or (H), but does not include psychiatric units of general hospitals. (11)(10) “Net operating revenues” means a provider’s gross charges less any deductions for bad debts, charity care, contractual allowances, and other payer discounts. (12)(11) “Nursing home” means a health care facility licensed under chapter 71 of Title 33 this title. (12) “Office” means the office of Vermont health access. (13) “Pharmacy” means a Vermont drug outlet licensed by the Vermont state board of pharmacy pursuant to chapter 36 of Title 26 in which prescription drugs are sold at retail. (14) “Secretary” means the secretary of the agency of human services. Sec. 284. 33 V.S.A. § 1952(b) is amended to read: (b) The department office may use not more than one percent of the assessments received under the provisions of this subchapter for necessary administrative expenses associated with this subchapter. Sec. 285. 33 V.S.A. § 1953 is amended to read: § 1953. HOSPITAL ASSESSMENT (a) Hospitals shall be subject to an annual assessment as follows: (1) Beginning July 1, 2004 2005, each hospital’s annual assessment, except for hospitals assessed under subdivision (2) of this subsection, shall be 4.54 6.0 percent of its net patient revenues (less chronic, skilled, and swing bed revenues) for the most recent completed hospital hospital’s fiscal year as determined annually by the commissioner director from the hospital’s financial reports and other data filed with the department of banking, insurance, securities, and health care administration before December 1 of the previous year. The annual assessment shall be based on data from a hospital’s third most recent full fiscal year. *** (b) Each hospital shall be notified in writing by the department office of the assessment made pursuant to this section. If no hospital submits a request for reconsideration under section 1958 of this title, the assessment shall be considered final. (c) Each hospital shall submit its assessment to the department office according to a payment schedule adopted by the commissioner director. SATURDAY, JUNE 4, 2005 1493 Variations in payment schedules shall be permitted as deemed necessary by the commissioner director. (d) Any hospital that fails to make a payment to the department office on or before the specified schedule, or under any schedule for delayed payments established by the commissioner director, shall be assessed not more than $1,000.00. The commissioner shall director may waive this late payment assessment provided for in this subsection for good cause shown by the hospital. Sec. 286. 33 V.S.A. § 1954 is amended to read: § 1954. NURSING HOME ASSESSMENT (a) Beginning July 1, 2004 2005, each nursing home’s annual assessment rate shall be $3,787.79 per bed licensed pursuant to section 7105 of this title on June 30 of the immediately preceding fiscal year shall be as follows: (1) Until such time as the United States Department of Health and Human Services grants a waiver to the uniform assessment rate, pursuant to 42 C.F.R. § 433.68(e), all licensed nursing home beds shall be assessed at the uniform rate of $3,676.06. (2) At such time as the United States Department of Health and Human Services grants a waiver to the uniform assessment, the assessment shall be $4,000.00 per bed for privately-owned nursing homes with more than 30 licensed beds, $1,900.00 per bed for privately-owned nursing homes with 30 beds or fewer, and $100.00 per bed for state-owned or operated nursing homes. If a waiver is granted, these rates shall be retroactive to the effective date of this subsection and any difference between the assessments under this subdivision and the payments under subdivision (1) of this subsection shall be reconciled by the collection of underpayments and the refund of overpayments. (3) The annual assessment for each bed licensed as of the beginning of the fiscal year shall be prorated for the number of days during which the bed was actually licensed and any over payment shall be refunded to the facility. To receive the refund, a facility shall notify the commissioner director in writing of the size of the decrease in the number of its licensed beds and dates on which the beds ceased to be licensed. (b) The department office shall provide written notification of the assessment amount to each nursing home. The assessment amount determined shall be considered final unless the home requests a reconsideration. Requests for reconsideration shall be subject to the provisions of section 1958 of this title. 1494 JOURNAL OF THE SENATE (c) Each nursing home shall submit its assessment to the department office according to a schedule adopted by the commissioner director. The commissioner director may permit variations in the schedule of payment as deemed necessary. (d) Any nursing home that fails to make a payment to the department office on or before the specified schedule, or under any schedule of delayed payments established by the commissioner director, shall be assessed not more than $1,000.00. The commissioner shall director may waive this late-payment assessment provided for in this subsection for good cause shown by the nursing home. Sec. 287. 33 V.S.A. § 1955 is amended to read: § 1955. ICF/MR ASSESSMENT (a) Each ICF/MR’s annual assessment shall be six percent of the ICF/MR’s total annual direct and indirect expenses for the most recently settled ICF/MR audit. (b) The department office shall provide written notification of the assessment amount to each ICF/MR. The assessment amount determined shall be considered final unless the facility requests a reconsideration. Requests for reconsideration shall be subject to the provisions of section 1958 of this title. (c) Each ICF/MR shall remit its assessment to the department office according to a schedule adopted by the commissioner director. The commissioner director may permit variations in the schedule of payment as deemed necessary. (d) Any ICF/MR that fails to make a payment to the department office on or before the specified schedule, or under any schedule of delayed payments established by the commissioner director, shall be assessed not more than $1,000.00. The commissioner shall director may waive this late-payment assessment provided for in this subsection for good cause shown by the ICF/MR. Sec. 288. 33 V.S.A. § 1955a is amended to read: § 1955a. HOME HEALTH AGENCY ASSESSMENT (a) Beginning July 1, 2003 2005, each home health agency’s assessment shall be 16.0 18.45 percent of its net operating revenues from core home health care services, excluding revenues for services provided under Title XVIII of the federal Social Security Act. The amount of the tax shall be determined by the commissioner director based on the home health agency’s most recent audited financial statements at the time of submission, a copy of which shall be provided on or before December 1 of each year to the office of Vermont health SATURDAY, JUNE 4, 2005 1495 access. For providers who begin operations as a home health agency after January 1, 2005, the tax shall be assessed as follows: (1) Until such time as the home health agency submits audited financial statements for its first full year of operation as a home health agency, the director, in consultation with the home health agency, shall annually estimate the amount of tax payable and shall prescribe a schedule for interim payments. (2) At such time as the full-year audited financial statement is filed, the final assessment shall be determined, and the home health agency shall pay any underpayment or the office shall refund any overpayment. The assessment for the state fiscal year in which a provider commences operations as a home health agency shall be prorated for the proportion of the state fiscal year in which the new home health agency was in operation. (b) Each home health agency shall be notified in writing by the department office of the assessment made pursuant to this section. If no home health agency submits a request for reconsideration under section 1958 of this title, the assessment shall be considered final. (c) Each home health agency shall submit its assessment to the department office according to a payment schedule adopted by the commissioner director. Variations in payment schedules shall be permitted as deemed necessary by the commissioner director. (d) Any home health agency that fails to make a payment to the department office on or before the specified schedule, or under any schedule for delayed payments established by the commissioner director, shall be assessed not more than $1,000.00. The commissioner shall director may waive this late payment assessment provided for in this subsection for good cause shown by the home health agency. Sec. 289. 33 V.S.A. § 1955b is added to read: § 1955b. PHARMACY ASSESSMENT (a) Beginning July 1, 2005, each pharmacy’s monthly assessment shall be $0.10 for each prescription filled and refilled. (b) Each pharmacy shall declare and provide supporting documentation to the director of the total number of prescriptions filled and refilled in the previous month and remit the assessment due for that month. The declaration and payment shall be due by the end of the following month. (c) Each pharmacy shall submit its assessment payment to the office monthly. Variations in payment timing shall be permitted as deemed necessary by the director. 1496 JOURNAL OF THE SENATE (d) Any pharmacy that fails to pay an assessment to the office on or before the due date shall be assessed a late payment penalty of two percent of the assessment amount for each month it remains unpaid; but late payment penalties for any one quarter shall not exceed $500.00. The director may waive a penalty under this subsection for good cause shown by the pharmacy, as determined by the director in his or her discretion. Sec. 290. REPEAL OF ASSESSMENT SUNSETS (a) Sec. 205 of No. 49 of the Acts of 1999, as amended by Sec. 18 of No. 65 of the Acts of 2001 and Sec. 311 of No. 66 of the Acts of 2003 (sunset of home health agency assessment), is repealed. (b) Sec. 4 of No. 56 of the Acts of 1993, as amended by Sec. 11 of No. 14 of the Acts of 1995, Sec. 71 of No. 59 of the Acts of 1997, Sec. 198 of No. 49 of the Acts of 1999, Sec. 17 of No. 65 of the Acts of 2001, and Sec. 312 of No. 66 of the Acts of 2003 (sunset of hospital assessment and nursing home assessment), is repealed. Sec. 291. 33 V.S.A. § 1956 is amended to read: § 1956. HEALTH ASSESSMENTS CARE TRUST FUND PROCEEDS FROM (a) The health care trust fund is hereby established in the state treasury is abolished. All remaining assets in the health care trust fund shall be deposited in the Vermont health access trust fund established by section 1972 of this title. All assessments, including late-payment assessments, from health care providers under this subchapter shall be deposited in the Vermont health access trust fund established in section 1972 of this title. The proceeds of other taxes designated by law and donations may also be deposited in the fund. Interest earned on the fund and any remaining balance shall be retained in the fund for the purposes of this subchapter. The department shall maintain records showing the amount of money in the fund at any time. (b) All monies received from or generated to the fund shall be used for the state portion of Medicaid expenditures and for administration of provisions of this subchapter under subsection 1952(c) of this title. Of the net revenues generated by the per bed annual assessment on nursing homes under subsection 1954(a) of this title, the net revenues generated by $200.00 per bed shall be used for home- and community-based Medicaid waiver services and the net revenues generated by $1,768.69 per bed, less the total amount of the state share of the inflation factor adjustments for state fiscal year 2002, as calculated by the division of rate setting pursuant to subsection 905(c) of this title, shall be used solely for Medicaid nursing home reimbursement as follows: SATURDAY, JUNE 4, 2005 1497 (1) Beginning on July 1, 1999, until such time as all cost categories have been rebased pursuant to section 905(c) of this title on a base year no earlier than 2002, wage supplements shall be paid on a schedule to be determined by the commissioner. Such supplements shall be based on the change in expenditures incurred on or after January 1, 1999, as determined by the division of rate setting, for wages, salaries and fringe benefits incurred by nursing homes for direct care staff and for other employee groups in nursing homes, other than owners and administrators (net expenditures). The division of rate setting shall annually calculate the net expenditures for each nursing home. Notwithstanding subsection 905(c) of this title or any other provision of law, the change of base year for any component of the nursing home payment rate shall not be made later than January 1, 2005. (2) The wage supplement shall not be subject to any payment limitations imposed pursuant to section 907 of this title. The aggregate amount of the wage supplements paid to all nursing homes during any fiscal year shall not exceed the net revenues from the nursing home assessments set aside for that purpose for that year plus the federal matching funds for those net revenues. The annual wage supplement payment for a nursing home shall be its proportional share of the net revenues, based on the ratio of its nursing wages, salaries and fringe benefits paid by the nursing home for direct care staff and for other employee groups, other than owners and administrators, to the total for all nursing homes participating in the Vermont Medicaid program in the 1997 cost reports. (3) After all cost categories have been rebased, wage supplements shall cease. To the extent that total net expenditures by a nursing home are less than the total wage supplement payments to that home, the excess shall be deemed an overpayment and shall be recouped from the home on a schedule to be determined by the commissioner and deposited in the health care trust fund. (4) No wage supplement payments shall be made until such time as the lawsuit filed by nursing homes against the state of Vermont now pending in Washington superior court is dismissed with prejudice. (c) On or before January 1, 2000, the commissioner shall report to the general assembly on the operation of the health care trust fund and wage supplements. (d) No provision of this subchapter shall permit the state to reduce the level of state funds expended on the nursing home Medicaid program in any fiscal year below the level expended in fiscal year 1991 from the general fund for the nursing home Medicaid program. 1498 JOURNAL OF THE SENATE (e) The general assembly shall appropriate funds from the health care trust fund to the department of prevention, assistance, transition, and health access, the department of aging and disabilities, and the department of developmental and mental health services, and such funds shall be transferred to the departments’ Medicaid and administrative appropriations as requested by the departments to carry out the purposes of this subchapter. Sec. 292. 33 V.S.A. § 1957 is amended to read: § 1957. AUDITS The commissioner director may require the submission of audited information as needed from health care providers to determine that amounts received from health care providers were correct. If an audit identifies amounts received due to errors by the department office, the commissioner director shall make payments to any health care provider which the audit reveals paid amounts it should not have been required to pay. Payments made under this section shall be made from the fund. Sec. 293. 33 V.S.A. § 1958 is amended to read: § 1958. APPEALS (a) Any health care provider may submit a written request to the department office for reconsideration of the determination of the assessment within 20 days of notice of the determination. The request shall be accompanied by written materials setting forth the basis for reconsideration. If requested, the department office shall hold a hearing within 20 days from the date on which the reconsideration request was received. The department office shall mail written notice of the date, time, and place of the hearing to the health care provider at least 10 days before the date of the hearing. On the basis of the evidence submitted to the department office or presented at the hearing, the department office shall reconsider and may adjust the assessment. Within 20 days of the hearing, the department office shall provide notice in writing to the health care provider of the final determination of the amount it is required to pay based on any adjustments made by it. Proceedings under this section are not subject to the requirements of 3 V.S.A. chapter 25. (b) Upon request, the commissioner director shall enter into nonbinding arbitration with any health care provider dissatisfied with the department’s office’s decision regarding the amount it is required to pay. The arbitrator shall be selected by mutual consent, and compensation shall be provided jointly. (c) Any health care provider may appeal the decision of the department office as to the amount it is required to pay either before or after arbitration, to the superior court having jurisdiction over the health care provider. SATURDAY, JUNE 4, 2005 1499 Sec. 294. 33 V.S.A. § 1971(3) is amended to read: (3) “Office of Vermont health access” means the division office of Medicaid within the agency of human services. Sec. 295. 33 V.S.A. § 1972 is amended to read: § 1972. VERMONT HEALTH ACCESS TRUST FUND ESTABLISHED (a) The Vermont health access trust fund is hereby established in the state treasury for the purpose of establishing a special fund to be the single source to finance health care coverage for beneficiaries of all state health care assistance programs administered by the department of prevention, assistance, transition, and health access agency. (b) Into the fund shall be deposited: *** (2) revenue from health care provider assessments collected and deposited into the health care trust fund pursuant to subchapter 2 of chapter 19 of this title; *** (c) The fund shall be administered pursuant to subchapter 5 of chapter 7 of Title 32, except that interest earned on the fund and any remaining balance shall be retained in the fund. The department agency shall maintain records indicating the amount of money in the fund at any time. (d) All monies received by or generated to the fund shall be used only for the administration and delivery of health care covered through state health care assistance programs administered by the department of prevention, assistance, transition, and health access agency, including the Medicaid program, the Vermont health access plan program, the Vermont health access plan-pharmacy program, the VScript program, the VScript-Expanded program, the state children’s health insurance program, the General Assistance program, and any other state health care assistance program administered directly or indirectly by or through the department agency. Sec. 296. MEDICAID PROGRAM ADMINISTRATION (a) Twenty-four-hour coverage. The office of Vermont health access shall establish a telephone line, staffed by physicians or nurses, which shall be available, initially, to medically complex beneficiaries at all times, 24 hours each day of the week, to provide appropriate advice to these beneficiaries and to improve communications between these beneficiaries and their caregivers. 1500 JOURNAL OF THE SENATE The office shall take active steps to ensure that these beneficiaries and their providers are knowledgeable about the 24/7 telephone line. (b) Care coordination. The office shall establish a program to assist in improving care by providing coordination among the multiple providers who treat individuals with serious illnesses. Goals of the program shall be collaboration and patient involvement in care, while promoting clinically appropriate and cost efficient services. (c) The office, in collaboration with the department of aging and independent living, shall undertake a study of ways to improve coordination of long-term and acute care for individuals served by the state’s long-term care waiver. (d) The office shall establish a program to improve planning for posthospital care to be provided during the patient’s hospital stay and to assist in post-discharge care. (e) Sole source authority. Notwithstanding current state laws, including 3 V.S.A. § 222(g), and regulations to the contrary and in order to implement the program changes required by this act during state fiscal year 2006, including system development, actuarial certification, pharmaceutical counter-detailing, preferred drug list data analysis, and outreach services, the secretary of the agency of human services may negotiate sole source contracts to meet the implementation deadlines in this act. Sec. 297. MEDICAID COVERAGE; DENTURES; EYEGLASSES (a) The health access oversight committee of the legislature shall review the costs, benefits, and financing alternatives of including coverage for full dentures, partial dentures, and eyeglasses under the Medicaid program. In this review, the committee shall have the assistance of the office of Vermont health access, the joint fiscal office, and the legislative council. The committee shall report its findings and recommendations to the general assembly no later than January 15, 2006. Sec. 298. CHIROPRACTIC BENEFITS FOR ADULTS (a) The office of Vermont health access shall design a chiropractic trial to begin in state fiscal year 2007. This trial shall be predicated upon and will proceed only if federal financial participation can be secured for the trial. The trial shall include limited diagnoses where chiropractic services, identified by the office of Vermont health access, shall be covered for the duration of the trial. The study period shall include an analysis of both the clinical efficacy of chiropractic treatment for the diagnoses identified along with a comparison to other treatment modalities for the same diagnoses and a financial analysis of the different treatment modalities. At the conclusion of the trial period and SATURDAY, JUNE 4, 2005 1501 upon confirmation from the centers for Medicare and Medicaid services that federal financial participation would be available, a recommendation shall be made to the general assembly for the reinstatement of chiropractic services where positive clinical outcomes and lower overall treatment costs have been shown. This recommendation may be limited by the scope and definitions of the trial. Sec. 299. EMPLOYER SPONSORED INSURANCE (a) The office of Vermont health access with the assistance of the department of banking, insurance, securities and health care administration shall develop a program to provide subsidies for individuals applying for and enrolled in the Vermont health access program and the Dr. Dynasaur program who have employer sponsored health insurance. The office and department shall report to the health access oversight committee, the senate and house appropriations committees, the senate committee on health and welfare and the house committee on human services with a plan for the employer-sponsored insurance program no later than January 15, 2006. The plan shall include recommendations for the subsidy amounts to be provided for each program by relevant income amounts based on federal poverty level, administrative cost estimates, implementation timelines, existing employer sponsored insurance options, a recommendation on the minimum health insurance coverage to be subsidized, and a recommendation on how to define “affordable” coverage for individuals, families and children by relevant income amounts based on federal poverty level. Sec. 300. CAPITATED PROGRAM FOR TREATMENT OF OPIATE DEPENDENCY (a) As part of the development of the office of Vermont health access’s care coordination initiative, there shall be developed a capitated program for the treatment of opiate dependency. In cooperation with all commercial insurers present in Vermont, the department of corrections, the office of drug and alcohol abuse programs, and office of Vermont health access shall: (1) develop a statewide electronic registry and treatment service assessment of patients with opiate dependency; (2) develop a statewide, integrated protocol for the treatment of opiate dependency; (3) identify the administrative and financial resources necessary to successfully implement and maintain the capitated program for the treatment of opiate dependency; (4) use a capitated payment methodology and set payment rates; and 1502 JOURNAL OF THE SENATE (5) create a plan to measure program outcomes with specific benchmarks. (b) The office shall provide a preliminary report and a recommendation for ongoing funding to the house and senate committees on appropriations, the house human services committee, and the senate health and welfare committee no later than January 15, 2006. Sec. 301. ENHANCED REGIONAL DISEASE SCREENING (a) In collaboration with the Vermont department of health (VDH), the office of Vermont health access shall promote primary disease detection activities in the following manner: (1) heighten awareness of ongoing public health screenings conducted by the VDH such as the Ladies First and Wise Woman programs; (2) procure and analyze Medicaid claims and Center for Disease Control public health data to develop regional disease prevalence rates to help prioritize specific screening programs; and (3) collaborate on joint ventures with the VDH utilizing the twelve district public health offices to implement and coordinate the above stated efforts on a regional basis. Sec. 302. FISCAL YEAR 2006 MEDICAID RELATED RULE-MAKING (a) Nursing homes. The division of rate setting shall amend the rules for establishing Medicaid rates for nursing home services to raise the minimum occupancy used in setting Medicaid rates to 93 percent, effective July 1, 2005. Notwithstanding any other provisions of law, this rule change shall be adopted as soon as practicable after passage of this act and shall be exempt from the procedural requirements of 3 V.S.A. chapter 25, except that the agency of human services shall make reasonable efforts to ensure that the change is made known to persons who may be affected by it. The required rule change shall stay in effect until such time as it is amended pursuant to 3 V.S.A. chapter 25. (b) Emergency rulemaking for July 1, 2005. Authority for emergency rulemaking is granted to the agency of human services in order to control expenditures in the Medicaid program in a timely manner, respond to the fiscal crisis in the Medicaid program, and retain Medicaid funds available to support essential programs for truly needy applicants and recipients. Therefore, the secretary of the agency of human services may adopt emergency rules pursuant to section 844 of Title 3 in order that the changes reflected in Sec. 279 (VHAP premium adjustments), and Sec. 280 (Dr. Dynasaur and SCHIP premium adjustments) of this act may be implemented no later than July 1, 2005. Emergency rules adopted under this section remain in effect until superseded, SATURDAY, JUNE 4, 2005 1503 extended, or amended by the secretary of the agency of human services under the process for adoption of agency rules in chapter 25 of Title 3. (c) Expedited rulemaking. Notwithstanding the provisions of chapter 25 of Title 3, if specifically authorized by the general assembly by law, the agency of human services may adopt rules pursuant to the following expedited rulemaking process: (1) The agency shall file proposed rules with the secretary of state and the legislative committee on administrative rules under 3 V.S.A. §841 after copies are sent to the house committees on appropriations and human services and after publication in three daily newspapers with the highest average circulation in the state of a notice that lists the rules to be adopted pursuant to this process and a seven-day public comment period following publication. (2) The agency shall file final proposed rules with the legislative committee on administrative rules 14 days after the public comment period. (3) The legislative committee on administrative rules shall review and may approve or object to the final proposed rules under 3 V.S.A. § 842, except that its action shall be completed no later than 14 days after the final proposed rules are filed with the committee. (4) The agency may adopt a properly filed final proposed rule after the passage of 14 days from the date of filing final proposed rules with the legislative committee on administrative rules or after receiving notice of approval from the committee, provided the agency: (A) has not received a notice of objection from the legislative committee on administrative rules; or (B) after having received a notice of objection from the committee, has responded pursuant to 3 V.S.A. § 842. (5) Rules adopted under this section shall be effective upon being filed with the secretary of state and shall have the full force and effect of rules adopted pursuant to chapter 25 of Title 3. Rules filed by an agency with the secretary of state pursuant to this section shall be deemed to be in full compliance with 3 V.S.A. § 843 and shall be accepted by the secretary of state if filed with a certification by the secretary of human services that the rule is required to meet the purposes of this section. Sec. 303. LONG-TERM CARE; FINANCIAL ELIGIBILITY (a) The secretary of the agency of human services is directed to amend the Medicaid rules and procedures related to income, resources, and transfers of 1504 JOURNAL OF THE SENATE assets used to determine eligibility of individuals for long-term care coverage under the expedited rulemaking authority granted in Sec. 302(c) of this act. The amendments to the Medicaid rules made under this section must be in accord with federal law. The agency’s authority to utilize the expedited rulemaking process is limited only to adoption of rules to effect the following changes: (1) To subject long-term care recipients to post-eligibility rules only if the recipients qualify for long-term care as part of the special income group under 42 U.S.C. § 1396a(a)(10)(A)(ii)(VI), or as medically needy under 42 U.S.C. § 1396a(a)(10)(C), or if they are in a medical institution; (2) To require individuals with income above the institutional standard requesting long-term care to spend down to the protected income level; (3) To permit reasonable expenses specified in current rules to reduce to the share of income applied to the cost of long-term care. (For the purposes of this subdivision, “reasonable expenses” do not include long-term care services received during periods of ineligibility for long-term care.); (4) To impose requirements on private contracts for care to limit their use as an excluded resource; (5) To count as a resource a life estate held by the applicant or recipient with a reserved power-to-mortgage (other than the principal place of residence) and value the life estate at the full fair market value of the fee estate, notwithstanding the purported creation of a remainder interest in another party; (6) To treat promissory notes and other similar income-producing resources in the same fashion as annuities and excludable only if certain collateral criteria of eligibility are met; (7) To implement additional tools to determine life expectancy; (8) To penalize transfers beginning on the first day of the month following the date of the transfer. (b) In addition, in order to control expenditures and retain Medicaid funds available to support essential programs for truly needy applicants and recipients, the agency of human services may utilize the expedited rulemaking authority set out in Sec. 302(c) of this act to amend rules related to income, resources, and transfers of assets used to determine eligibility of individuals for long-term care, if required to do so to address ambiguity, omission, or expectations that are providing a way for otherwise ineligible SSI-related medically needy applicants with income above 300 percent of the SSI payment standard for one person in the community pursuant to 42 USC 1396a(a)(10(C)(ii), or optionally categorically needy applicants with income SATURDAY, JUNE 4, 2005 1505 above the protected income level and below 300 percent of the SSI payment standard for one who qualifies as part of the “special income group” pursuant to 42 USC 1396a(10)(A)(ii)(VI), to avoid such asset and financial eligibility rules. Sec. 304. HIV/AIDS HEALTH INSURANCE ASSISTANCE PROGRAM (a) The office of Vermont health access, in cooperation with the department of health, shall operate an HIV/AIDS insurance assistance program. (b) The program shall pay all or a portion of continuation health insurance premiums for those eligible individuals with HIV/AIDS for whom it can be determined that continuation of private insurance coverage is less costly to the state than other alternatives. (c) Eligibility for this program shall be limited to individuals whose household income does not exceed 200 percent of the federal poverty level, after deducting unreimbursed medical expenses and health insurance premiums from gross income, and whose assets, exclusive of the primary residence and certain other exclusions to be defined by the office of Vermont health access do not exceed $10,000.00. (d) Expenditures under this program shall not exceed $55,000.00 in fiscal year 2006. Sec. 305. PREFERRED DRUG LIST; DRUG UTILIZATION REVIEW (a) Preferred drug list (PDL) revisions. (1) Prescribers shall be required to comply with any changes in the PDL within reasonable time frames prescribed by the office of Vermont health access in consultation with the drug utilization review board. (2)(A) The exemption of certain classes of drugs used to treat certain types of severe and persistent mental illness from inclusion in the prior authorization process may end after the review of the report required in Sec. 5(2)(B) of No. 127 of the Acts of the 2001 Adj. Sess. (2002) as amended by Sec. 128h of No. 122 of the Acts of the 2003 Adj. Sess. (2004) and Sec. 310 of this act is completed, the proposed changes to the preferred drug list have been reviewed by the drug utilization review board, and the health access oversight committee has made any recommendations to the drug utilization review board no later than September 15, 2005. (B) The proposed changes to the preferred drug list shall ensure that adults with severe and persistent mental illness and children with a severe emotional disorder receiving pharmaceuticals under Medicaid or a state 1506 JOURNAL OF THE SENATE pharmaceutical program subject to subchapter 5 of chapter 19 of Title 33 prior to the end of the exemption shall receive the same pharmaceuticals without following the new rules or procedures if: (i) the individual is at risk of psychiatric destabilization from changing to a therapeutically comparable pharmaceutical; and (ii) the risk is certified in a manner established by the drug utilization review board. (b) Drug utilization review revisions. (1) The members of the drug utilization review board are entitled to compensation for services and reimbursement of expenses as provided to members of state boards under 32 V.S.A. § 1010. (2) The director, in consultation with the drug utilization review board, shall establish an advisory panel of three persons with clinical and pharmacological expertise to advise the drug utilization review board on scientific, technical, and clinical issues relating to the clinical efficacy, safety, and cost-effectiveness of drugs considered for inclusion on the preferred drug list. Experts on the panel shall be entitled to compensation for services as provided by contract with the director. (3) The office, in consultation with the drug utilization review board, shall establish a policy to increase the appropriate use of generic drugs. The policy may include education, outreach, and the use of prior authorization whenever a brand is prescribed and a generic drug is available. The policy shall have a target of 95 percent utilization of generic drug prescriptions when generic equivalent drugs are available and 60 percent when generic alternative drugs are available. (4) The office, in consultation with the drug utilization review board, shall identify new therapeutic classes from which savings are possible through the use of a PDL. In order to assist in making this determination, the office shall be provided with comparative information such as that developed by the drug effectiveness review project. (5) The drug utilization review board shall make recommendations to establish criteria for the supply of prescription drugs to be dispensed. Sec. 306. 18 V.S.A. § 4605(a) is amended to read: (a) When a pharmacist receives a prescription for a drug which is listed either by generic name or brand name in the most recent edition of the federal Food and Drug Administration’s “Orange Book” of approved drug products, the pharmacist shall select the lowest priced drug from such list which is chemically and therapeutically equivalent and which the pharmacist has in SATURDAY, JUNE 4, 2005 1507 stock, unless otherwise instructed by the prescriber, or by the purchaser if the purchaser agrees to pay any additional cost in excess of the benefits provided by the purchaser’s health benefit plan if allowed under the legal requirements applicable to the plan, otherwise to pay the full cost for the higher priced drug. Sec. 307. 33 V.S.A. § 1998a is added to read: § 1998a. PHARMACY MAIL ORDER The pharmacy best practices and cost control program shall require consumers to purchase prescription drugs using mail order for selected pharmacy products. Sec. 308. 33 V.S.A. § 1998(f)(1) and (2) are amended to read: (1) The drug utilization review board shall make recommendations to the commissioner director for the adoption of the preferred drug list. The board’s recommendations shall be based upon considerations of clinical efficacy, safety, and cost-effectiveness. (2) The board shall meet at least quarterly. The board shall comply with the requirements of subchapter 2 of chapter 5 of Title 1 (open meetings) and subchapter 3 of chapter 5 of Title 1 (open records), except that the board may go into executive session in order to comply with 2002(c) of this title to consider information relating to a pharmaceutical rebate or to supplemental rebate agreements, which is protected from disclosure by federal law or the terms and conditions required by the Centers for Medicare and Medicaid Services as a condition of rebate authorization under the Medicaid program. Sec. 308a. 1 V.S.A. § 313(a) is amended to read: (a) No public body described in section 312 of this title may hold an executive session from which the public is excluded, except by the affirmative vote of two-thirds of its members present in the case of any public body of state government or of a majority of its members present in the case of any public body of a municipality or other political subdivision. A motion to go into executive session shall indicate the nature of the business of the executive session, and no other matter may be considered in the executive session. Such vote shall be taken in the course of an open meeting and the result of the vote recorded in the minutes. No formal or binding action shall be taken in executive session except actions relating to the securing of real estate options under subdivision (2) of this subsection. Minutes of an executive session need not be taken, but if they are, shall not be made public subject to section subsection 312(b) of this title. A public body may not hold an executive session except to consider one or more of the following: *** 1508 JOURNAL OF THE SENATE (9) information relating to a pharmaceutical rebate or to supplemental rebate agreements, which is protected from disclosure by federal law or the terms and conditions required by the Centers for Medicare and Medicaid Services as a condition of rebate authorization under the Medicaid program, considered pursuant to 33 V.S.A. §1998(f)(2) and §2002(c). Sec. 309. 33 V.S.A. § 1999(a)(2) is amended to read: (2)(A) The program shall authorize coverage under the same terms as coverage for preferred choice drugs if the prescriber determines, after consultation with the pharmacist, or with the participating health benefit plan if required by the terms of the plan, that: (i) the preferred choice has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient’s condition; or (ii) the preferred choice causes or is reasonably expected to cause adverse or harmful reactions in the patient. (B) The prescriber’s determination concerning whether the standards established in this subdivision (2) have been demonstrated shall be final if any documentation required at the direction of the drug utilization board has been provided. Sec. 310. MENTAL HEALTH DRUGS; PRIOR AUTHORIZATION Sec. 5(2) of No. 127 of the Acts of the 2001 Adj. Sess. (2002) as amended by Sec. 128h of No. 122 of the Acts of the 2003 Adj. Sess. (2004) is amended to read: (2)(A) Sec. 1, 33 V.S.A. § 1999(d) (prior authorization and drugs used to treat mental illness), shall be repealed on July 1, 2006 amended to read: (d) The program’s prior authorization process shall not apply to prescription drugs prescribed for the treatment of severe and persistent mental illness including schizophrenia, severe depression, or bipolar disorder. The agency may include prescription drugs prescribed for the treatment of severe and persistent mental illness, including schizophrenia, major depression, or bipolar disorder, in the prior authorization process after the health access oversight committee has reviewed the report as provided for in Sec. 305(a)(2)(A) of H-516 of the 2005 legislative session. (B) The commissioner of prevention, assistance, transition, and health office of Vermont health access shall report to the health access oversight committee concerning the drug utilization review board’s analysis of prescribing patterns, literature, and testimony regarding clinical efficacy and outcomes, expenditure trends, and any proposed revisions to the preferred drug list as it pertains to drugs used to treat mental illness no later than September 1, SATURDAY, JUNE 4, 2005 1509 2005. The commissioner’s director’s report shall include also an assessment of the use of medication algorithms and of the behavioral pharmacy project implemented in the state of Missouri and other such cost-saving alternatives in use in other states that do not include the use of a formulary, preferred drug list, or prior authorization process. Sec. 311. 33 V.S.A. § 2002(b) is amended to read: (b) The commissioner director shall negotiate supplemental rebates, price discounts, and other mechanisms to reduce net prescription drug costs by means of any negotiation strategy which the commissioner director determines will result in the maximum economic benefit to the program and to consumers in this state, while maintaining access to high quality prescription drug therapies. The director may negotiate through a purchasing pool or directly with manufacturers. The provisions of this subsection do not authorize agreements with pharmaceutical manufacturers whereby financial support for medical services covered by the Medicaid program is accepted as consideration for placement of one or more prescription drugs on the preferred drug list. The January 1, 2003 report of the commissioner pursuant to subsection 2001(d) of this title shall include a cost-benefit analysis of alternative negotiation strategies, including the strategy used by the State of Florida to secure supplemental rebates, the strategy used by the State of Michigan to secure supplemental rebates, and any other alternative negotiation strategy that might secure lower net prescription drug costs. Sec. 312. 18 V.S.A. § 9410(h) is added to read: (h) Data Collection and Information Sharing. (1) All health insurers shall electronically provide to the commissioner in accordance with standards and procedures adopted by the commissioner by rule: (A) their encrypted claims data; (B) cross-matched claims data on requested members, subscribers, or policyholders; and (C) member, subscriber, or policyholder information necessary to determine third party liability for benefits provided. (2) The collection, storage, and release of health care data and statistical information that is subject to the federal requirements of the Health Insurance Portability and Accountability Act (“HIPAA”) shall be governed exclusively by the rules adopted thereunder in 45 CFR Parts 160 and 164. 1510 JOURNAL OF THE SENATE (A) All health insurers that collect the Health Employer Data and Information Set (HEDIS) shall annually submit the HEDIS information to the commissioner in a form and in a manner prescribed by the commissioner. (B) All health insurers shall accept electronic claims submitted in Centers for Medicare and Medicaid Services format for UB-92 or HCFA-1500 records, or as amended by the Centers for Medicare and Medicaid Services. (3)(A) The commissioner shall collaborate with the agency of human services and participants in agency of human services initiatives in the development of a comprehensive health care information system. The collaboration is intended to address the formulation of a description of the data sets that will be included in the comprehensive health care information system, the criteria and procedures for the development of limited use data sets, the criteria and procedures to ensure that HIPAA compliant limited use data sets are accessible, and a proposed time frame for the creation of a comprehensive health care information system. (B) To the extent allowed by HIPAA, the data shall be available as a resource for insurers, employers, providers, purchasers of health care, and state agencies to continuously review health care utilization, expenditures, and performance in Vermont and to enhance the ability of Vermont consumers and employers to make informed and cost-effective health care choices. In presenting data for public access, comparative considerations shall be made regarding geography, demographics, general economic factors, and institutional size. (C) Notwithstanding HIPAA or any other provision of law, the comprehensive health care information system shall not include or disclose any data that contains direct personal identifiers. For the purposes of this section, “direct personal identifiers” include information relating to an individual that contains primary or obvious identifiers, such as the individual’s name, street address, e-mail address, telephone number, and Social Security number. Sec. 313. PHARMACEUTICAL ASSISTANCE PROGRAMS; PREMIUM ADJUSTMENTS (a) On July 1, 2006, the premiums for the pharmaceutical assistance programs established in 33 V.S.A. §2074 shall be increased as follows: (1) In the case of recipients whose household income is greater than the income eligibility level for Medicaid and no greater than 150 percent of the federal poverty level, such premium shall be $15.00 per month. (2) In the case of recipients whose household income is greater than 150 percent of the federal poverty level and no greater than 175 percent of the federal poverty level, the premium shall be $20.00 per month. SATURDAY, JUNE 4, 2005 1511 (3) In the case of recipients whose household income is greater than 175 percent of the federal poverty level and no greater than 225 percent of the federal poverty level, the premium shall be $42.00 per month. (b) On July 1, 2006, the base cost-sharing amount for V-Pharm shall be increased to: (1) $15.00 per month or $180.00 per year in the case of recipients whose household income is no greater than 150 percent of the federal poverty level. (2) $20.00 per month or $240.00 per year in the case of recipients whose household income is greater than 150 percent of the federal poverty level and no greater than 175 percent of the federal poverty level. (3) $42.00 per month or $504.00 per year in the case of recipients whose household income is greater than 175 percent of the federal poverty level and no greater than 225 percent of the federal poverty level. Sec. 314. 33 V.S.A. chapter 19, subchapter 8 is added to read: Subchapter 8. Vermont Pharmaceutical Assistance Programs § 2071. DEFINITIONS For purposes of this subchapter: (1) “Individual with disabilities” means an individual who is under age 65 and is entitled, under the federal Social Security Act, to disability insurance benefits or is eligible for Medicare. (2) “Maintenance drug” means a drug approved by the FDA for continuous use and prescribed to treat a chronic condition for a prolonged period of time of 30 days or longer and includes insulin, an insulin syringe, and an insulin needle. (3) “Medicare part D” means the prescription drug program established under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173, including the prescription drug plans offered pursuant to the act. (4) “OVHA” means the office of Vermont health access. (5) “Pharmaceutical” means a drug that may not be dispensed unless prescribed by a health care provider as defined by subdivision 9402(8) of Title 18 acting within the scope of the provider’s license. The term excludes a drug determined less than effective under the federal Food, Drug and Cosmetics Act. 1512 JOURNAL OF THE SENATE (6) “Pharmacy” means a retail or institutional drug outlet licensed by the Vermont state board of pharmacy pursuant to chapter 36 of Title 26, or by an equivalent board in another state, in which pharmaceuticals are sold at retail and which has entered into a written agreement with the state to dispense pharmaceuticals in accordance with the provisions of this chapter. § 2072. GENERAL ELIGIBILITY (a) An individual shall be eligible for assistance under this subchapter if the individual: (1) is a resident of Vermont at the time of application for benefits; (2) is at least 65 years of age or is an individual with disabilities as defined in subdivision 2071(1) of this title; and (3) has a household income, when calculated in accordance with the rules adopted for the Vermont health access plan under No. 14 of the Acts of 1995, as amended, no greater than 225 percent of the federal poverty level. (b) An individual whose pharmaceutical expenses are paid or reimbursable, either in whole or in part, by any plan of assistance or insurance, other than Title XVIII (Medicare) and Title XIX (Medicaid) of the Social Security Act, shall not be eligible for pharmaceutical assistance under this subchapter. No assistance shall be provided under this subchapter with respect to an individual pharmaceutical purchase that may be covered in whole by Title XVIII. § 2073. V-PHARM ASSISTANCE PROGRAM (a) Effective January 1, 2006, the V-Pharm program is established as a state pharmaceutical assistance program to provide supplemental pharmaceutical coverage to Medicare beneficiaries. The supplemental coverage under subsection (c) of this section shall provide only the same pharmaceutical coverage as the Medicaid program to enrolled individuals whose income is not greater than 150 percent of the federal poverty guidelines and only coverage for maintenance drugs for enrolled individuals whose income is greater than 150 percent and no greater than 225 percent of the federal poverty guidelines. (b) Any individual with income no greater than 225 percent of the federal poverty guidelines participating in Medicare part D, having secured the low income subsidy if the individual is eligible and meeting the general eligibility requirements established in section 2072 of this title shall be eligible for V-Pharm. (c) V-Pharm shall provide supplemental benefits by paying or subsidizing: SATURDAY, JUNE 4, 2005 1513 (1) the actual Medicare part D premium for the standard prescription drug benefit offered by Medicare part D prescription drug programs, except for any late enrollment penalties, provided that OVHA may pay or subsidize a higher premium for a Medicare part D prescription drug plan offering expanded benefits if it is cost-effective to do so; (2) any other cost-sharing required by Medicare part D, except for co-payments for individuals eligible for Medicaid; (3) the following pharmaceuticals if they are not covered by the individual’s Medicare part D prescription drug plan: pharmaceuticals or classes of pharmaceuticals, or their medical uses, which may be excluded from coverage or otherwise restricted under Medicaid under Section 1927(d)(2) or (3) of the Social Security Act; and (4) pharmaceuticals that are not covered after the individual has exhausted the Medicare part D prescription drug plan's appeal process or the prescription drug plan's transition plan approved by the Centers for Medicare and Medicaid Services, and that are deemed medically necessary by the individual's prescriber in a manner established by the director of the office of Vermont health access. The coverage decision under this subdivision shall not be subject to the exceptions process established under Medicaid. An individual may appeal to the human services board or pursue any other remedies provided by law. (d)(1) The secretary of the agency of human services shall develop by rule the manner by which an individual shall contribute the individual’s cost established in subdivision (2) of this section, except that individuals eligible for Medicaid shall only be subject to the cost-sharing requirements established by Medicaid and Medicare. The rule shall seek to minimize the possibility of inadvertent loss of eligibility for Medicare part D and V-Pharm benefits. Prior to filing the rule, the secretary shall submit the proposed rule to the health access oversight committee established in Sec. 13 of No. 14 of the Acts of 1995, as amended. The health access oversight committee shall review and advise on the agency rules and policies developed under this subsection and shall submit for consideration any recommendations to the joint legislative committee on administrative rules. (2) An individual shall contribute the following base cost-sharing amounts which shall be indexed to the increases established under 42 C.F.R. §423.104(d)(5)(iv) and then rounded to the nearest dollar amount: (A) $13.00 per month or $156.00 per year in the case of recipients whose household income is no greater than 150 percent of the federal poverty level. 1514 JOURNAL OF THE SENATE (B) $17.00 per month or $204.00 per year in the case of recipients whose household income is greater than 150 percent of the federal poverty level and no greater than 175 percent of the federal poverty level. (C) $35.00 per month or $420.00 per year in the case of recipients whose household income is greater than 175 percent of the federal poverty level and no greater than 225 percent of the federal poverty level. (e) In order to ensure the appropriate payment of claims, OVHA may expand the Medicare advocacy program established under chapter 67 of this title to individuals receiving benefits from the V-Pharm program. § 2074. VERMONT-Rx PROGRAM (a) Effective January 1, 2006, Vermont-Rx is established within the office of Vermont health access and shall be the continuation of the state pharmaceutical programs in existence upon passage of this subchapter for those individuals not eligible for Medicare part D. Vermont-Rx is a pharmaceutical assistance program for individuals age 65 or older who are not eligible for Medicare and for individuals with disabilities who are receiving Social Security disability benefits and who are not eligible for Medicare. Vermont Rx may retain the current program names of VHAP Rx, VScript, and VScript Expanded if it is cost-effective to retain the current names in lieu of combining the current programs into one program. (1) The program shall be administered by OVHA which, to the extent funding permits, shall establish application, eligibility, coverage, and payment standards. In addition to the general eligibility requirements established in section 2072 of this title, an individual must not be eligible for Medicare in order to be eligible for benefits under Vermont-Rx. (2) To the extent necessary under federal law, OVHA shall administer Vermont-Rx in such a manner as to ensure that any permissible federal funding may be received to support the program. OVHA may establish a division of the Vermont-Rx program to administer federal Medicaid funds separately in accordance with a federal waiver pursuant to Section 1115 of the Social Security Act. (3) If permissible under federal law, OVHA shall use the same forms and application process for individuals to enroll in Vermont-Rx, regardless of the funding source for the program. (b) Vermont-Rx shall provide: (1) the same pharmaceutical coverage as the Medicaid program to elderly individuals and individuals with disabilities whose income is no greater than 150 percent of the federal poverty guidelines; and SATURDAY, JUNE 4, 2005 1515 (2) maintenance drugs to elderly individuals and individuals with disabilities whose income is greater than 150 percent and no greater than 225 percent of the federal poverty guidelines. (c) Benefits under Vermont-Rx shall be subject to payment of a premium amount by the recipient in accordance with the provisions of this section. (1) In the case of recipients whose household income is no greater than 150 percent of the federal poverty level, such premium shall be $13.00 per month. (2) In the case of recipients whose household income is greater than 150 percent of the federal poverty level and no greater than 175 percent of the federal poverty level, the premium shall be $17.00 per month. (3) In the case of recipients whose household income is greater than 175 percent of the federal poverty level and no greater than 225 percent of the federal poverty level, the premium shall be $35.00 per month. (d) Any manufacturer of pharmaceuticals purchased by individuals receiving assistance from Vermont-Rx established under this section shall pay to OVHA, as a condition of participation in the program, a rebate in an amount at least as favorable as the rebate paid to OVHA in connection with the Medicaid program. (e) Under Vermont-Rx, a pharmaceutical may be dispensed to an eligible recipient provided such dispensing is pursuant to and in accordance with any contractual arrangement that OVHA may enter into or approve for the group discount purchase of pharmaceuticals. When a person or business located in Vermont and employing citizens of this state has submitted a bid for the group discount purchase of pharmaceuticals and has not been selected, the director of OVHA shall record the reason for nonselection. The director’s report shall be a public record available to any interested person. All bids or quotations shall be kept on file in the director’s office and open to public inspection. § 2075. ASSISTANCE IN ENROLLING IN MEDICARE PART D The agency of human services may act, if permissible under federal law, as an individual’s agent to enroll the individual in a Medicare part D prescription drug plan and a low income subsidy if the individual has not enrolled prior to the application for V-Pharm. The agency shall provide applicants for V-Pharm with information on Medicare part D and the low income subsidy if applicable, and on how to obtain assistance in enrolling in Medicare part D or the subsidy. 1516 JOURNAL OF THE SENATE § 2076. OVER-THE-COUNTER AND GENERIC MEDICATIONS (a) All public pharmaceutical assistance programs shall provide coverage for those over-the-counter pharmaceuticals on the preferred drug list developed under section 1998 of this title, provided the pharmaceuticals are authorized as part of the medical treatment of a specific disease or condition, and they are a less costly, medically appropriate substitute for currently covered pharmaceuticals. (b) All public pharmaceutical assistance programs shall comply with the provisions regarding generic drugs established in chapter 91 of Title 18. (c) OVHA shall seek any waivers of federal law, rule, or regulation necessary to implement the provisions of this section. § 2077. ADMINISTRATION (a) The programs established under this subchapter shall be designed to provide maximum access to program participants, to incorporate mechanisms that are easily understood and require minimum effort for applicants and health care providers, and to promote quality, efficiency, and effectiveness through cost controls and utilization review. OVHA may contract with a fiscal agent for the purpose of processing claims and performing related functions required in the administration of the pharmaceutical programs established under this subchapter. (b) Upon determining that an applicant is eligible under this subchapter, OVHA shall issue an identification card to the applicant. (c) A pharmacy which dispenses a pharmaceutical to an individual eligible for a pharmaceutical program established under this subchapter shall collect payment for the pharmaceutical from OVHA. § 2078. EDUCATION AND OUTREACH The department of aging and independent living shall conduct ongoing education and outreach to inform elderly Vermonters and Vermonters with disabilities of the benefits they may be entitled to pursuant to this subchapter, make available information concerning pharmaceutical assistance programs, and minimize any confusion and duplication of pharmaceutical coverage resulting from a multiplicity of pharmaceutical programs. § 2079. CONSTRUCTION The benefits provided by the pharmaceutical assistance programs established under this subchapter constitute medical services for purposes of section 141 of this title. SATURDAY, JUNE 4, 2005 1517 § 2080. VERMONT PRESCRIPTION DRUG PRICING AND CONSUMER PROTECTION PROGRAM The secretary of the agency of human services shall administer this subchapter in conformity with the pharmacy best practices and cost control program established under subchapter 5 of this chapter to enable the citizens of Vermont to purchase necessary prescription pharmaceuticals at the lowest possible price, to ensure access to such pharmaceuticals, and to support Vermont pharmacies, consistent with the time frames, standards, and procedures established by the general assembly. § 2081. RULES AND LEGISLATIVE OVERSIGHT (a) The agency of human services shall adopt rules necessary to implement and administer the provisions of this subchapter, including standards and schedules establishing coverage and exclusion of pharmaceuticals and maximum quantities of pharmaceuticals to be dispensed, and to comply with the requirements of the Medicare Modernization Act. The agency of human services shall submit the proposed rule to the health access oversight committee established in Sec. 13 of No. 14 of the Acts of 1995, as amended. The health access oversight committee shall review and advise on the agency rules and policies developed under this subsection and shall submit for consideration any recommendations to the joint legislative committee on administrative rules. (b) OVHA shall report on the status of the pharmaceutical assistance programs established by this subchapter to the health access oversight committee in accordance with Sec. 13 of No. 14 of the Acts of 1995, as amended. Sec. 315. FEDERAL APPROVAL; V-PHARM PROGRAM (a) If required by federal law, the agency of human services shall apply to the Centers for Medicare and Medicaid Services to establish the V-Pharm program established in Sec. 314 of this act as a state pharmaceutical assistance program eligible to provide supplemental pharmaceutical benefits to Medicare beneficiaries and shall apply for any necessary Medicaid waiver in order to secure federal contributions. If allowable under federal law, the agency of human services shall continue to operate all or part of Vermont-Rx under a Medicaid waiver in order to secure federal contributions. Sec. 316. TRANSITIONAL PROVISIONS (a) The programs established under subchapter 8 of chapter 19 of Title 33 shall be the successor to and continuation of the VHAP-Pharmacy, VScript, and VScript Expanded programs. 1518 JOURNAL OF THE SENATE (b) The office of Vermont health access (OVHA) shall develop necessary rules to ensure that individuals do not lose coverage for necessary pharmaceuticals at the beginning of coverage under Medicare part D if the individual: (1) has applied for and attempted to enroll in Medicare part D and has not received coverage for the needed pharmaceutical due to an operational problem with Medicare part D; or (2) has otherwise not received coverage for the needed pharmaceutical; provided such failure to receive coverage is due to good cause shown and presents a hardship to the individual, as good cause and hardship are defined by OVHA. (c)(1) The commissioner of aging and independent living and the director of the office of Vermont health access shall continue to convene the working group of individuals with disabilities, elderly individuals, advocates, and providers established under Sec. 128j of No. 122 of the Acts of the 2003 Adj. Sess. (2004). The working group shall meet monthly or more frequently as needed and shall: (A) revise as necessary and implement a plan which at a minimum shall include outreach, education, and assistance to Vermont Medicare beneficiaries in order to minimize confusion and duplication of coverage caused by the introduction of the new, federally mandated Medicare part D pharmacy program. The plan shall focus on those individuals who may also be eligible for another program which provides supplemental pharmacy benefits, including Medicaid, VHAP-Pharmacy, VScript, VScript Expanded, Healthy Vermonters, or the programs established under this act; (B) plan for the implementation of Medicare part D in the state beginning January 1, 2006. Such planning shall include both monitoring and advocacy on federal policy as it relates to Vermont state pharmaceutical assistance programs with a goal of minimizing any reduction of assistance to these beneficiaries. The plan shall analyze fully the potential gains and losses to Vermont and to its state pharmaceutical assistance beneficiaries resulting from Medicare part D and the balance of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, P.L. 108-173, and shall provide ongoing cost projections and identify sources of funding for holding these beneficiaries harmless from pharmacy benefit cuts once Medicare part D is implemented; and (C) report as requested to the house committee on human services, the senate committee on health and welfare, or, outside the legislative session and on November 1, 2005, to the health access oversight committee. SATURDAY, JUNE 4, 2005 1519 (2) For the purpose of this section, “holding harmless” means the payment of premiums, of cost-sharing, and for pharmaceuticals in drug classes not covered by Medicare part D in an amount sufficient to ensure that Vermonters enrolled in the state’s pharmaceutical programs prior to the implementation of Medicare part D do not have an increased financial burden and have pharmaceutical benefits therapeutically comparable to those offered by the state pharmaceutical programs prior to implementation of Medicare part D. (d) The agency of human services shall report the number of beneficiaries of VHAP-Pharmacy, VScript, and VScript-Expanded as of January 1, 2006 who did not enroll in V-Pharm by December 31, 2005 or who were ineligible for V-Pharm for failure to enroll in Medicare part D or the Medicare part D low income subsidy. The agency shall report to the house committees on human services and on appropriations and the senate committees on health and welfare and on appropriations not later than February 15, 2006. Sec. 317. MEDICARE PART D; PHARMACEUTICAL BENEFITS FOR NURSING HOME RESIDENTS (a) The agency of human services shall make such rules as are necessary to ensure that residents in nursing homes are held harmless from the transition to the Medicare part D pharmaceutical program and by the consolidation of the state pharmaceutical programs under this act. For the purpose of this section, “held harmless” means that the state shall ensure that Vermonters enrolled in the state’s pharmaceutical programs prior to the implementation of Medicare part D do not have an increased financial burden and have pharmaceutical benefits therapeutically comparable to those offered by the state pharmaceutical programs prior to implementation of Medicare part D. Sec. 318. MEDICARE; CHANGES TO ASSET AND INCOME RULES (a) Subject to any required federal approval, the agency of human services shall eliminate the asset requirements and raise the income limits for individuals who qualify as qualified Medicare beneficiaries (QMB), specified low income Medicare beneficiaries (SLMB), and qualifying individuals (QI) in order to maximize the eligibility of these individuals for the low income subsidy program under Medicare part D, provided that the agency finds that the elimination of the asset test, or the increase in the income limits, or both for each program will be, at a minimum, cost neutral to the state in that the costs of the resulting increased Medicaid participation would not exceed the benefits from greater participation in the low income subsidy program as it relates to the Medicare part D program and any decrease in the administrative savings from simplifying eligibility. The agency shall evaluate the cost neutrality of 1520 JOURNAL OF THE SENATE each eligibility requirement for each program separately to determine which changes to which programs meet this standard. Sec. 319. MEDICARE PART D EMPLOYER SUBSIDY (a) The commissioner of human resources shall investigate and evaluate the costs and benefits of the state’s electing to receive the employer subsidy under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173 and, upon expiration of the current collective bargaining agreement, the state’s modifying the state employee and retiree pharmaceutical benefits to wrap around the Medicare part D prescription drug program. The commissioner shall consider the benefits and costs to state retirees, taxpayers, and beneficiaries of the state pharmaceutical programs. The commissioner shall report on the investigation and evaluation to the general assembly no later than January 15, 2006. The report shall include information regarding the current employee and retiree pharmaceutical benefits, the cost-sharing requirements for employees, retirees, and the state, the projected subsidy to be received, and any other information considered by the commissioner in the evaluation. (b) The state treasurer shall report to the general assembly no later than January 15, 2006 regarding the amount of any expected employer subsidy to be received by the state under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173. (c) The state treasurer, in consultation with the Vermont state teachers’ retirement board, shall investigate and evaluate the costs and benefits of electing the employer subsidy under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173 and the modification of the teacher retiree pharmaceutical benefits to wrap around the Medicare part D prescription drug program. The treasurer shall consider the benefits and costs to teacher retirees, taxpayers, and beneficiaries of the state pharmaceutical programs. The treasurer shall report on the investigation and evaluation to the general assembly no later than January 15, 2006. The report shall include information regarding the current teacher retiree pharmaceutical benefits, the cost-sharing requirements for retirees, the subsidy to be received, and any other information considered by the treasurer in the evaluation. The treasurer shall report to the general assembly no later than January 15, 2006 with the amount of the subsidy to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173. Sec. 320. STATUTORY REVISION (a) The legislative council shall make such technical revisions to the Vermont Statutes Annotated to reflect the consolidation of the state SATURDAY, JUNE 4, 2005 1521 pharmaceutical programs and the creation of V-Pharm, including revisions to the names of programs and to statutory citations. Sec. 321. REPEAL (a) Subchapter 4 of chapter 19 of Title 33 is repealed as of January 1, 2006. Any other provisions in session law enacted prior to this act which established premiums or other cost sharing for state pharmaceutical programs are repealed by the codification of cost sharing in this act. Sec. 322. EFFECTIVE DATES (a) This section and Secs. 109, 132(a), 147a, 150(b), 154a, 162a, 165a, 173a, 193, 205c, 250(c), 255, 263, 272, 277c, 277d, 277e, 277f, 279, 280, 302, 303, 307, 315, 317, and 318 of this act shall take effect on passage. (b) Sec. 31(b) shall take effect July 10, 2005. (c) Sec. 169a shall take effect July 1, 2006. SUSAN J. BARTLETT RICHARD W. SEARS, JR. DIANE B. SNELLING Committee on the part of the Senate MARTHA P. HEATH MARK LARSON Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative on a roll call, Yeas 24, Nays 0. Senator Sears having demanded the yeas and nays, they were taken and are as follows: Roll Call Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Collins, Condos, Cummings, Doyle, Dunne, Flanagan, Giard, Illuzzi, Kitchel, Kittell, Leddy, Lyons, Maynard, Mazza, Miller, Mullin, Sears, Snelling, Welch, White, Wilton. Those Senators who voted in the negative were: None. Those Senators absent and not voting were: Coppenrath, Gander, MacDonald, Scott, Shepard, Starr. 1522 JOURNAL OF THE SENATE Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged S. 15. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to voyeurism. Was taken up for immediate consideration. Senator Sears, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 15. An act relating to voyeurism. Respectfully reports that it has met and considered the same and recommends that the House recede from its proposals of amendment and that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. SHORT TITLE This act may be referred to and cited as “The Safe Communities Act.” Sec. 2. 13 V.S.A. § 2638 is added to read: § 2638. VOYEURISM (a) As used in this section: (1) “Bona fide private investigator or bona fide security guard” means an individual lawfully providing services, whether licensed or unlicensed, pursuant to sections 3151 and 3151a of Title 26. (2) “Female breast” means any portion of the female breast below the top of the areola. (3) “Circumstances in which a person has a reasonable expectation of privacy” means circumstances in which a reasonable person would believe that his or her intimate areas would not be visible to the public, regardless of whether that person is in a public or private area. SATURDAY, JUNE 4, 2005 1523 (4) “Intimate areas” means the naked or undergarment-clad genitals, pubic area, buttocks, or female breast of a person. (5) “Place where a person has a reasonable expectation of privacy” means: (A) a place in which a reasonable person would believe that he or she could disrobe in privacy, without his or her undressing being viewed by another; or (B) a place in which a reasonable person would expect to be safe from unwanted intrusion or surveillance. (6) “Surveillance” means secret observation of the activities of another person for the purpose of spying upon and invading the privacy of the person. (7) “View” means the intentional looking upon another person for more than a brief period of time, in other than a casual or cursory manner, with the unaided eye or a device designed or intended to improve visual acuity. (b) No person shall intentionally view, photograph, film, or record in any format: (1) the intimate areas of another person without that person’s knowledge and consent while the person being viewed, photographed, filmed, or recorded is in a place where he or she would have a reasonable expectation of privacy; or (2) the intimate areas of another person without that person’s knowledge and consent and under circumstances in which the person has a reasonable expectation of privacy. (c) No person shall disseminate any image recorded in violation of subsection (b) of this section. (d) No person shall intentionally conduct surveillance or intentionally photograph, film, or record in any format a person without that person’s knowledge and consent while the person being surveilled, photographed, filmed, or recorded is in a place where he or she would have a reasonable expectation of privacy within a home or residence. Bona fide private investigators and bona fide security guards engaged in otherwise lawful activities within the scope of their employment are exempt from this subsection. (e) This section shall apply to a person who intentionally views, photographs, films, or records the intimate areas of a person as part of a security or theft prevention policy or program at a place of business. 1524 JOURNAL OF THE SENATE (f) This section shall not apply to: (1) a law enforcement officer conducting official law enforcement activities in accordance with state and federal law; or (2) official activities of the department of corrections, a law enforcement agency, the agency of human services, or a court for security purposes or during the investigation of alleged misconduct by a person in the custody of the department of corrections, a law enforcement agency, the agency of human services, or a court. (g) This section is not intended to infringe upon the freedom of the press to gather and disseminate news as guaranteed by the First Amendment to the Constitution of the United States. (h) It shall be an affirmative defense to a violation of subsection (b) of this section that the defendant was a bona fide private investigator or bona fide security guard conducting surveillance in the ordinary course of business, and the violation was unintentional and incidental to otherwise legal surveillance. However, an unintentional and incidental violation of subsection (b) of this section shall not be a defense to a violation of subsection (c). (i) For a first offense, a person who violates subsection (b) or (d) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both. For a second or subsequent offense, a person who violates subsection (b) or (d) of this section shall be imprisoned not more than three years or fined not more than $5,000.00, or both. A person who violates subsection (c) of this section shall be imprisoned not more than five years or fined not more than $5,000.00, or both. Sec. 3. 13 V.S.A. § 5401(10) is amended to read: (10) “Sex offender” means: (A) A person who is convicted in any jurisdiction of the United States, including a state, territory, commonwealth, the District of Columbia, or military, federal, or tribal court of any of the following offenses: (i) sexual assault as defined in 13 V.S.A. § 3252; (ii) aggravated sexual assault as defined in 13 V.S.A. § 3253; (iii) lewd and lascivious conduct as defined in 13 V.S.A. § 2601; (iv) sexual activity by a caregiver as defined in 33 V.S.A. § 6913(d); (v) second or subsequent conviction for voyeurism as defined in 13 V.S.A. § 2638(b) or (c); and SATURDAY, JUNE 4, 2005 1525 (vi) an attempt to commit any offense listed in this subdivision. *** Sec. 4. 13 V.S.A. § 1061 is amended to read: § 1061. DEFINITIONS As used in this subchapter,: (1) “Stalk” means to engage in a course of conduct which consists of following or, lying in wait for, or harassing, and: (A) serves no legitimate purpose; and (B) causes the would cause a reasonable person to fear for his or her physical safety or causes the would cause a reasonable person substantial emotional distress. (2) “Course of conduct” means a pattern of conduct composed of two or more acts over a period of time, however short, evidencing a continuity of purpose. Constitutionally protected activity is not included within the meaning of “course of conduct.” (3) “Following” means maintaining over a period of time a visual or physical proximity to another person in such manner as would cause a reasonable person to have a fear of unlawful sexual conduct, unlawful restraint, bodily injury, or death. (4) “Harassing” means a course of conduct actions directed at a specific person, or a member of the person’s family, which would cause a reasonable person to fear unlawful sexual conduct, unlawful restraint, bodily injury, or death, including but not limited to verbal threats, written, telephonic, or other electronically communicated threats, vandalism, or unconsented to physical contact without consent. (5) “Lying in wait” means hiding or being concealed for the purpose of attacking or harming another person. Sec. 5. 13 V.S.A. § 1063 is amended to read: § 1063. AGGRAVATED STALKING (a) A person commits the crime of aggravated stalking if the person intentionally stalks another person;, and: (1) such conduct violates a court order that prohibits stalking and is in effect at the time of the offense; or (2) has been previously convicted of stalking or aggravated stalking; or 1526 JOURNAL OF THE SENATE (3) has been previously convicted of an offense an element of which involves an act of violence against the same person; or (4) the person being stalked is under the age of 16 years; or (5) had a deadly weapon, as defined in section 1021 of this title, in his or her possession while engaged in the act of stalking. (b) A person who commits the crime of aggravated stalking shall be imprisoned not more than five years or be fined not more than $25,000.00, or both. (c) Conduct constituting the offense of aggravated stalking shall be considered a violent act for the purposes of determining bail. Sec. 6. 13 V.S.A. § 1024 is amended to read: § 1024. AGGRAVATED ASSAULT (a) A person is guilty of aggravated assault if he the person: (1) attempts to cause serious bodily injury to another, or causes such injury purposely, knowingly, or recklessly under circumstances manifesting extreme indifference to the value of human life; or (2) attempts to cause or purposely or knowingly causes bodily injury to another with a deadly weapon; or (3) for a purpose other than lawful medical or therapeutic treatment, he the person intentionally causes stupor, unconsciousness, or other physical or mental impairment or injury to another person by administering to him, the other person without his the other person’s consent, a drug, substance, or preparation capable of producing the intended harm; or (4) with intent to prevent a law enforcement officer from performing a lawful duty, he the person causes physical injury to any person; or (5) is armed with a deadly weapon and threatens to use the deadly weapon on another person. (b) A person found guilty of violating a provision of subsection subdivision (a)(1) or (2) of this section shall be imprisoned for not more than 15 years or fined not more than $10,000.00, or both. (c) A person found guilty of violating a provision of subsection subdivisions (a)(3) or, (4), or (5) of this section shall be imprisoned for not more than five years or fined not more than $5,000.00, or both. (d) Subdivision (a)(5) of this section shall not apply if the person threatened to use the deadly weapon: SATURDAY, JUNE 4, 2005 1527 (1) In the just and necessary defense of his or her own life or the life of his or her husband, wife, civil union partner, parent, child, brother, sister, guardian, or ward; (2) In the suppression of a person attempting to commit murder, sexual assault, aggravated sexual assault, burglary, or robbery; or (3) In the case of a civil or military officer lawfully called out to suppress a riot or rebellion, prevent or suppress an invasion, or assist in serving legal process, in suppressing opposition against him or her in the just and necessary discharge of his or her duty. (e) Subsection (d) of this section shall not be construed to limit or infringe upon defenses granted at common law. Sec. 7. 20 V.S.A. § 1932 is amended to read: § 1932. DEFINITIONS As used in this subchapter: *** (12) “Violent Designated crime” means any of the following offenses: (A) assault and robbery with a dangerous weapon as defined in subsection 608(b) of Title 13 a felony; (B) assault and robbery causing bodily injury as defined in subsection 608(c) of Title 13; (C) aggravated assault as defined in section 1024 of Title 13; (D) murder as defined in section 2301 of Title 13; (E) manslaughter as defined in section 2304 of Title 13; (F) kidnapping as defined in section 2405 of Title 13 or its predecessor as it was defined in section 2401 of Title 13; (G) first degree unlawful restraint as defined in section 2407 of Title 13; (H) maiming as defined in section 2701 of Title 13; (I) first degree aggravated domestic assault as defined in section 1043 of Title 13 where the defendant causes serious bodily injury to another person; (J) sexual assault as defined in 13 V.S.A. §§ 3252(a)(1), (2) and (4), and 3252(b) or the predecessor offenses as defined in section 3201 of Title 13; (K) aggravated sexual assault as defined in section 3253 of Title 13; 1528 JOURNAL OF THE SENATE (L) lewd and lascivious conduct as defined in section 2601 of Title 13; (M) lewd or lascivious conduct with a child as defined in section 2602 of Title 13; (N) sexual activity by a caregiver with an elderly or disabled adult, as defined in 33 V.S.A. § 6913(d), where the sexual activity is exploitation as described in 33 V.S.A. § 6902(7)(D); (O) sexual exploitation of children as defined in 13 V.S.A. §§ 2822, 2823 and 2824; (P) burglary as defined in 13 V.S.A. § 1201; (Q) § 3705(d); unlawful trespass of a residence as defined in 13 V.S.A. (R) an attempt to commit any offense listed in this subdivision; or (S)(C) any other offense, if, as part of a plea agreement in an action in which the original charge was a crime listed in this subdivision and probable cause was found by the court, there is a requirement that the defendant submit a DNA sample to the DNA data bank. Sec. 8. 20 V.S.A. § 1933 is amended to read: § 1933. DNA SAMPLE REQUIRED (a) The following persons shall submit a DNA sample: (1) every person convicted in a court in this state of a violent designated crime on or after the effective date of this subchapter; and (2) every person who was convicted in a court in this state of a violent designated crime prior to the effective date of this subchapter and, after the effective date of this subchapter, is: (A) in the custody of the commissioner of corrections pursuant to 28 V.S.A. § 701; (B) on parole for a violent designated crime; (C) serving a supervised community sentence for a violent designated crime; and (D) on probation for a violent designated crime. (b) A person serving a sentence for a violent designated crime in a correctional facility shall have his or her DNA samples collected or taken at the receiving correctional facility, or at a place and time designated by the commissioner of corrections or by a court. SATURDAY, JUNE 4, 2005 1529 (c) A person serving a sentence for a violent designated crime not confined to a correctional facility shall have his or her DNA samples collected or taken at a place and time designated by the commissioner of corrections, the commissioner of public safety, or a court. Sec. 9. 20 V.S.A. § 1940 is amended to read: § 1940. EXPUNGEMENT OF RECORDS AND DESTRUCTION OF SAMPLES (a) If a person’s conviction of a violent designated crime is reversed and the case is nolle prosequi or dismissed or the person is granted a full pardon, the court with jurisdiction or, as the case may be, the governor, shall so notify the department, and the person’s DNA record in the state DNA database and CODIS and the person’s DNA sample in the state DNA data bank shall be removed and destroyed. The laboratory shall purge the DNA record and all other identifiable information from the state DNA database and CODIS and destroy the DNA sample stored in the state DNA data bank. If the person has more than one entry in the state DNA database, CODIS, or the state DNA data bank, only the entry related to the dismissed case shall be deleted. The department shall notify the person upon completing its responsibilities under this subsection, by certified mail addressed to the person’s last known address. *** Sec. 10. 20 V.S.A. § 1946 is added to read: § 1946. REPORT FROM COMMISSIONER The commissioner of public safety shall report annually no later than January 15 to the senate and house committees on judiciary regarding the administration of the DNA databank, any backlogs in processing samples, and staffing and funding issues related to any backlog. Sec. 11. FUNDING FOR DNA DATABANK EXPANSION There is a general fund appropriation of $30,000.00 plus available matching funds in H.516 which shall be used to address the DNA processing associated with this act. This funding includes hiring additional staff at the Vermont crime lab. Sec. 12. 24 V.S.A. § 1940 is added to read: § 1940. TASK FORCES; SPECIALIZED INVESTIGATIVE UNITS; BOARD; GRANTS (a) A task force or specialized investigative unit organized and operating under section 1938 of this title may accept, receive, and disburse in furtherance 1530 JOURNAL OF THE SENATE of its duties and functions any funds, grants, and services made available by the state of Vermont and its agencies, the federal government and its agencies, any municipality or other unit of local government, or private or civic sources. (b) A specialized investigative unit grants board is created which shall be comprised of the attorney general, the secretary of administration, the executive director of the department of state’s attorneys, the commissioner of the department of public safety, the executive director of the center for crime victim services, and the executive director of the Vermont League of Cities and Towns. Specialized investigative units organized and operating under section 1938 of this title for the investigation of sex crimes, child abuse, elder abuse, domestic violence, or crimes against those with physical or developmental disabilities may apply to the board for a grant or grants covering the costs of salaries and employee benefits to be expended during a given year for the performance of unit duties as well as unit operating costs for rent, utilities, equipment, training, and supplies. Grants under this section shall be approved by a majority of the entire board and shall not exceed 50 percent of the yearly salary and employee benefit costs of the unit. (c) The board may adopt rules relating to grant eligibility criteria, processes for applications, awards, and reports related to grants authorized pursuant to this section. The attorney general shall be the adopting authority. Sec. 13. 13 V.S.A. § 5411a is amended to read: § 5411a. ELECTRONIC POSTING OF THE SEX OFFENDER REGISTRY *** (l) If a sex offender’s information is required to be posted electronically pursuant to subdivision (a)(2) of this section, the department shall list the offender’s convictions for any crime listed in subdivision 5401(10) of this title, regardless of the date of the conviction or whether the offender was required to register as a sex offender based upon that conviction. Sec. 14. 13 V.S.A. § 5412 is amended to read: § 5412. ACTIVE COMMUNITY NOTIFICATION BY THE DEPARTMENT OF PUBLIC SAFETY, THE DEPARTMENT OF CORRECTIONS, AND LOCAL LAW ENFORCEMENT; IMMUNITY (a) The department, the department of corrections, any authorized local law enforcement agency, and their employees shall be immune from liability in carrying out the provisions under this subchapter except in instances of gross negligence or willful misconduct, provided that the agencies complied with the rules adopted pursuant to this subchapter. SATURDAY, JUNE 4, 2005 1531 (b) Nothing in this subchapter shall be construed to prevent the The department, the department of corrections, and any authorized local law enforcement agency from notifying are authorized to notify members of the public who are likely to encounter a sex offender who poses a danger under circumstances that are not enumerated in this subchapter. (c) Notification of the community beyond those persons likely to encounter a sex offender shall be authorized only under circumstances which constitute a compelling risk to public safety and only after consultation with the Vermont crime information center and the department of corrections. (d) Active community notification regarding registered sex offenders who may pose a danger to members of the community is an important public safety tool which the general assembly intends for authorized agencies to use at their discretion in accordance with this subchapter. Sec. 15. NOTICE OF AUTHORITY FOR ACTIVE COMMUNITY NOTIFICATION (a) When the general assembly created the sex offender registry through the adoption of No. 124 of the Acts of the 1995 Adj. Sess. (1996), it granted authority to the department of public safety, the department of corrections, and local law enforcement agencies to notify actively members of the public of any registered sex offender who might pose a danger to them in the community. The general assembly finds that this authority has been utilized inconsistently among agencies statewide. (b) In No. 157 of the Acts of the 2003 Adj. Sess. (2004), the general assembly required the department of public safety to establish and conduct, in cooperation with the department of corrections, a comprehensive training program to inform and instruct law enforcement and corrections personnel on the operation of the sex offender registry and sex offender community notification, including authority to conduct active community notification. The general assembly appropriated $25,000.00 for the training. (c) Amendments in this act to 13 V.S.A. § 5412 are clarifications of existing law and intended to dispel any ambiguities as to the authority of designated agencies to notify when appropriate the public of sex offenders who are living in the community. (d) The department of public safety shall send notice of the amendments to sex offender laws in this act to all law enforcement agencies in the state, and of their authority to engage in active community notification in accordance with subchapter 3 of chapter 167 of Title 13. The department of corrections shall send notice of the amendments to sex offender laws in this act to all probation and parole officers in the state, and of their authority to engage in active 1532 JOURNAL OF THE SENATE community notification in accordance with subchapter 3 of chapter 167 of Title 13. This notice shall be sent no later than September 1, 2005. Sec. 16. 13 V.S.A. § 5411b is amended to read: § 5411b. DESIGNATION OF HIGH-RISK SEX OFFENDER *** (d) The department of corrections shall identify those sex offenders under the supervision as of the date of passage of this act who are high-risk and shall designate them as such no later than September 1, 2005. Sec. 17. SEX COMMITMENT OFFENDER COMMUNITY REENTRY; CIVIL (a) The House Committee on Judiciary finds that the vast majority of convicted sex offenders eventually returns to the community, either on probation, parole, community sentence, or having reached their maximum sentence. It is essential that policymakers determine the appropriate manner to maximize Vermont resources to have the greatest impact on public safety with regard to sex offenders. (b) Testimony indicates that a very small number of dangerous sex offenders, estimated at one to two offenders a year by the department of public safety, poses a particularly high risk to community safety. The committee recognizes the need to address not only these particularly dangerous offenders, but the return of all sex offenders to Vermont communities. (c) In order to address the risks that convicted sex offenders may pose in the community, the House Committee on Judiciary shall meet in the summer and fall of 2005 to continue its consideration and examination of current public safety and corrections policy regarding sexual violence and the return of sex offenders to our communities. These meetings shall include consideration of civil commitment and other policy alternatives. (d) The committee has taken considerable testimony on the option of civil commitment of sex offenders and strongly believes that more information is needed. Proposals submitted to the committee on behalf of the administration lacked essential information regarding implementation of such a program, funding needs and resources, staffing requirements and resources, and treatment plans. Without such details, it is impossible for the committee to determine whether such a program is the best approach to community safety and whether such a program would be constitutional as applied. (e) The committee shall also consider the best practices with regard to investigation, prosecution, sentencing, and prison treatment of sex offenders. Issues shall include special prosecution units, presentence investigations, SATURDAY, JUNE 4, 2005 1533 presentence risk assessment and psychosexual evaluations, enhanced criminal penalties, and successful treatment models. (f) The committee is authorized to meet five times during the summer and fall of 2005 and shall have the assistance and cooperation of all state and local agencies and departments. The legislative council and the joint fiscal office shall provide professional and administrative support for the committee. (g) Committee members shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 406. (h) The commissioner of health, commissioner of public safety, and commissioner of corrections shall jointly submit a report to the house committee on judiciary regarding the administration’s proposals for civil commitment of sex offenders. The report shall be submitted no later than August 1, 2005. (i) The report shall address the administration’s three options, including out-of-state placement, a Vermont facility-based program, and a module-based program. The report shall address, at a minimum, the following: (1) Capacity. (2) Staffing. (3) Treatment. (4) Program and capital costs. (j) The report shall include findings regarding community based out-patient civil commitment and address 24-hour staff supervision of offenders, GPS monitoring, and viability of staffed halfway houses. (k) The report shall include findings regarding which states will accept Vermont sexually violent predators who have been civilly committed, the cost, the duration, and number of offenders. (l) The report shall include the impacts of dedicating a wing of an existing Vermont correctional facility, including the cost of displacing Vermont inmates to an out-of-state facility, as well as capital costs for retrofitting a designated wing for sexually violent predators. Sec. 18. CRIMINAL CODE STUDY COMMITTEE Subsections (c) and (d) of Sec. 293 of No. 122 of the Acts of the 2003 Adj. Sess. (2004) are amended to read: (c) The committee shall consist of the following members: 1534 JOURNAL OF THE SENATE (1) two three members of the senate appointed by the committee on committees, one of whom shall be the chair of the committee on judiciary; (2) two three members of the house of representatives appointed by the speaker, one of whom shall be the chair of the committee on judiciary; *** (d)(1) The committee shall consider the following: *** (2) The committee shall also consider whether Vermont should establish a permanent sentencing commission. The committee shall make recommendations with regard to the mission and obligations of such a commission, the members of the commission, and the administration of the commission. Sec. 19. EFFECTIVE DATE Sec. 18 shall take effect upon passage. And that the title of the bill be amended to read: AN ACT RELATING TO COMMUNITY SAFETY. RICHARD W. SEARS, JR. JOHN F. CAMPBELL KEVIN J. MULLIN Committee on the part of the Senate WILLIAM J. LIPPERT, JR. MAXINE GRAD MICHAEL KAINEN Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the Governor forthwith. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged S. 56. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: SATURDAY, JUNE 4, 2005 1535 An act relating to restructuring the agency of natural resources. Was taken up for immediate consideration. Senator Lyons, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 56. An act relating to restructuring the agency of natural resources. Respectfully reports that it has met and considered the same and recommends that the House recede from its proposals of amendment and that the bill be amended by striking out all after the enacting clause, and inserting the following: Sec. 1. LEGISLATIVE FINDINGS AND PRINCIPLES The general assembly finds: (1) The lives of all Vermonters are affected by the agency of natural resource’s ability to carry out its duties to protect and responsibly manage Vermont’s precious natural resources for the benefit of current and future generations. (2) The following obstacles currently prevent the agency of natural resources from consistently meeting its statutory obligations: (A) Agency of natural resources programs in the three agency departments (the department of environmental conservation, the department of fish and wildlife, and the department of forests, parks and recreation) are not always sufficiently well integrated. (B) A significant number of agency of natural resources staff work in regional offices throughout the state. These staff are familiar with and focused on meeting the unique natural resources challenges of their regions. However, there is also a need to ensure that the practices implemented in the regions are connected to basic agency-wide policies and to the agency management system. If coordination between regional and central agency staff is insufficient, inconsistent application of agency policies may result. (C) The following examples attest to the challenges faced by the agency of natural resources in meeting state and federal statutory mandates in a timely manner: 1536 JOURNAL OF THE SENATE (i) The agency has not completed the basin planning requirement in state and federal law. (ii) The agency has not completed basic, minimal groundwater mapping for aquifers serving public water systems as required by state law. (iii) The agency has not completed implementation of key components of the federal Clean Water Act, such as developing total maximum daily loads (TMDL) and developing an antidegradation implementation policy. (D) Public and agency attention to simplifying and streamlining the permitting process for applicants should be accompanied by commensurate progress in measuring the effectiveness of the regulatory process in protecting the interests of others and in determining and tracking the status and the health of the natural resources that it is the agency’s mission to protect. (E) The problems faced by the agency of natural resources may be the result of a lack of agency resources, complex and interwoven statutory programs established at different times and often in response to different federal laws, restrictions on the use of federal funds, an inefficient allocation of existing resources, inefficiencies in the agency management structure, or any combination of these and other factors. (F) Currently, there is not a clear and consistent connection between the agency’s own policy, planning, and implementation work and core environmental issues that are being addressed to some degree by other state agencies (including state long-range transportation planning, energy planning, and planning to address global climate change). (3) Good policy and planning are vital to any large agency’s ability to efficiently carry out its responsibilities. The agency’s planning and policy efforts must be well connected, based on the law, and communicated to the staff who implement these policies. The agency’s internal policy must be coordinated with planning efforts in the individual departments. (4) The agency must have a clear, well articulated vision to implement the state’s environmental policy as established by law. This must be done in a manner that connects to the work of all the departments and guides staff implementation. Sec. 2. RESTRUCTURING PROCESS (a) A statewide advisory group, the Natural Resources Re-organization Committee (NRRC), is created to advise the secretary on the design of a restructured agency. It shall consist of no more than 13 members, who shall be appointed as follows: two members of the house appointed by the Speaker of SATURDAY, JUNE 4, 2005 1537 the House, two members of the senate appointed by the President Pro Tem; nine members appointed by the secretary of natural resources, in consultation with the Speaker of the House and the President Pro Tem, as follows: one representing regulated business and development interests; one representing environmental organizations; one representing fish and wildlife interests; one representing the interests of forests and parks; one representing recreational interests; one representing local government; one representing the regional planning commissions; one representing the Vermont State Employees Association; and one representing citizens’ groups. Appointments shall be made no later than June 15, 2005, and shall be for terms of one year. (1) The secretary shall convene the first meeting of NRRC no later than July 1, 2005, at which point the committee shall select its own officers. (2) The NRRC shall hold public hearings with respect to the functions of the agency, and the issues identified in this act, in each of the agency’s five administrative districts, provide public notice of each public hearing, and inform the secretary and the legislative committees on natural resources and energy and on government operations of their recommendations. (3) The NRRC shall establish a process to solicit input from agency staff. For purposes of this act only, the provisions of the collective bargaining contract article on whistle blower, as printed in the agreements between the State of Vermont and the Vermont State Employees’ Association, are extended to all employees in the agency not covered by these agreements. (4) Members of the NRRC not receiving compensation for service on the advisory group from another source are entitled to compensation under section 1010 of Title 32. (b) The secretary shall engage in the following process as preliminary steps in a potential restructuring of the agency: (1) In order to implement state environmental policy for the benefit of current and future generations, the secretary, with the assistance of a consultant and in consultation with the NRCC, shall: (A) Collaborate with agency staff, advocacy groups, other state agencies, municipalities, and other stakeholders to receive input on organizational models and the design of the agency. This process may include focus groups, public meetings, newsletters, surveys, and the use of a website. (B) Collaborate with agency staff, advocacy groups, other state agencies, municipalities, and other stakeholders to determine specific accountability indicators needed to measure agency restructuring, both with respect to the reallocation of agency resources and personnel, but also with 1538 JOURNAL OF THE SENATE respect to the agency’s ability to perform its duties to protect the state’s natural resources. (C) Examine areas where consultation may be needed, such as information technology design, federal cost allocation, and organizational development. (D) Identify and implement staff development programs necessary to assist the agency staff to carry out their responsibilities in the restructured agency. (2) The secretary shall examine functions, such as administrative support and supervision, and space requirements necessary to ensure the agency’s ability to be responsive and helpful to permit applicants, neighbors, and others interested in and affected by the permitting process. (3) On or before January 15, 2006, the secretary shall prepare a draft report on restructuring, provide the draft report to the NRRC for review and comments, make any appropriate revisions to the draft report, and submit a final report to the legislative committees on natural resources and energy and on government operations and to the house committee on fish, wildlife, and water resources. (A) The report shall contain recommendations to restructure the agency, and a progress report on the procedures followed and on administrative actions that have been taken or that are being taken to complete the process. The report shall list persons and organizations who have participated in the process, and shall include: (i) Identification of resources and agency action that would be required to implement fully and adequately state and federal natural resources law. (ii) A plan for making the agency’s permit process, enforcement actions, planning, and other functions more accessible in order to be more effective, efficient, transparent, integrated, and accountable. This shall include resources required and a recommended time frame needed for implementation of the plan; (iii) Accountability mechanisms to ensure that alleged permit violations are forwarded to the agency’s enforcement division, that there is a sufficient enforcement presence to give the natural resources the protection anticipated by the pertinent underlying legislation and that those who do not comply with the law are not given an unfair advantage over those who do; (iv) Provision of policy guidance from the agency’s planning efforts to coordinate between the agency’s departments and divisions in a SATURDAY, JUNE 4, 2005 1539 manner that protects the state’s resources while responding to legitimate interests of applicants and others involved in the permitting process; (B) The report shall include any draft legislation necessary to eliminate contradictions that have been identified to date in existing statutes, and to allow progress in any reorganization proposed by the agency; (C) The report shall explain the anticipated budgetary impacts and transitional costs of the proposed restructuring; and (D) The report shall include recommendations for improving coordination of functions that are shared with, or that overlap with, those of other state agencies and units of local government. Sec. 3. APPROPRIATION The sum of $50,000.00 is appropriated from the general fund to the agency of natural resources in fiscal year 2006 for the purpose of hiring a consultant-facilitator to assist in implementation of this act. VIRGINIA V. LYONS SUSAN J. BARTLETT DIANE B. SNELLING Committee on the part of the Senate JIM MASLAND JOSEPH KRAWCZYK JIM MCCULLOUGH Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the Governor forthwith. Rules Suspended; Third Reading Ordered, Rules Suspended; Bill Passed in Concurrence; Rules Suspended; Bill Messaged H. 325. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and House bill entitled: An act relating to workers’ compensation compensability of heart attacks suffered by firefighters and police officers. Was taken up for immediate consideration. 1540 JOURNAL OF THE SENATE Senator Illuzzi, for the Committee on Economic Development, Housing and General Affairs to which the bill was referred, reported recommending that the bill ought to pass in concurrence. Thereupon, the bill was read the second time by title only pursuant to Rule 43, and third reading of the bill was ordered. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was placed on all remaining stages of its passage in concurrence forthwith. Thereupon, the bill was read the third time and passed in concurrence. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Rules Suspended; Third Reading Ordered, Rules Suspended; Bill Passed in Concurrence; Rules Suspended; Bill Messaged H. 314. Appearing on the Calendar for notice, on motion of Senator Welch, the rules were suspended and House bill entitled: An act relating to agricultural development. Was taken up for immediate consideration. Senator Wilton, for the Committee on Agriculture, to which the bill was referred, reported recommending that the bill ought to pass in concurrence. Thereupon, the bill was read the second time by title only pursuant to Rule 43, and third reading of the bill was ordered. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was placed on all remaining stages of its passage in concurrence forthwith. Thereupon, the bill was read the third time and passed in concurrence. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Senate Resolution Adopted Senate resolution of the following title was offered, read and adopted, and is as follows: By Senators Dunne, Collins, Condos, Flanagan, Giard, Illuzzi, Kitchel, Lyons, MacDonald, Miller, Sears, Snelling, Welch and White, S.R. 5. Senate resolution relating to urging state and federal actions to punish the Sudanese government and corporations that conduct business in or with the Sudan. SATURDAY, JUNE 4, 2005 1541 Joint resolution strongly recommending state and federal actions to punish the Sudanese government and corporations that conduct business with the government of Sudan Whereas, even though the factions involved in the long-running Sudanese civil war recently signed a peace treaty ending their internal conflict, the Sudanese government remains an international pariah due to its genocidal treatment of Sudanese in the western region of the nation known as Darfur, and Whereas, the Sudanese government has intentionally used “Janjaweed” militias, its air force, and organized starvation to kill the population in Darfur, and Whereas, on several occasions within the last 12 months, Congress has expressed in extremely strong terms, its outrage with the Sudanese government, and Whereas, on May 6, 2004, the United States Senate adopted S.Con. 99, “condemn[ing] the Government of the Republic of Sudan and militia groups supported by it for attacks against innocent civilians in the Darfur region of western Sudan” and calling for a United Nations investigation “to determine if crimes against humanity have been committed,” and Whereas, on May 17, 2004, the United States House of Representatives passed a similarly worded resolution, H.Con. Res. 403, and Whereas, as even more information became available, on July 22, 2004, the United States House of Representatives on a 422-0 roll call vote, with 12 abstentions, adopted an even more strongly condemnatory resolution, H.Con. Res. 467 declaring that “atrocities unfolding in Darfur, Sudan are genocide,” and Whereas, on September 9, 2004, former Secretary of State Powell stated in testimony before the U.S. Senate Foreign Relation Committee that the state department had concluded genocide had been committed in Darfur and may still be occurring, and Whereas, on September 21, 2004, President Bush, in an address before the United Nations General Assembly, stated that “the world is witnessing terrible suffering and horrible crimes in the Darfur region of Sudan, crimes my government has concluded are genocide,” and Whereas, the United Nations estimates that 350,000 persons have been killed in Darfur since the Sudanese government launched its genocidal attacks in the region, and 1542 JOURNAL OF THE SENATE Whereas, in accordance with Executive Order No. 13067 which former President Clinton issued on November 3, 1997, and that remains in effect, although not enforced as vigilantly as it should be, American businesses are prohibited from investing in or doing business with Sudan, and American economic interaction with Sudan is severely limited to the exporting of licensed agricultural commodities, the transfer of informational materials, and the delivery of donated items, such as food, clothing, and medicine that are intended to relieve human suffering, and Whereas, on March 2 of this year, a bipartisan group of United States senators introduced S.495, “to impose sanctions against perpetrators of crimes against humanity in Darfur, Sudan,” and Whereas, this legislation proposes to further tighten the existing American economic sanctions against Sudan, and Whereas, while no American home-based corporations are operating in Sudan, corporations that are foreign-based, but that are listed on American stock exchanges, do engage in commercial activities with this outlaw nation, and Whereas, Vermont’s three public pension systems, the Vermont State Employees’ Retirement System, the Vermont State Teachers’ Retirement System, and the Vermont Municipal Employees’ Retirement System, do have financial assets in foreign-based corporations with Sudanese economic ties worth at least $2 million and possibly in excess of $100 million, and Whereas, such investments, even if they were made unintentionally, help to support a government that our nation’s political leadership has stated is committing genocide, and Whereas, the conscience of Vermonters should not support providing any form of assistance to this criminal and immoral Sudanese regime, now therefore be it Resolved by the Senate and House of Representatives: That the General Assembly urges the state treasurer to work with the three state retirement boards to implement a policy for the disinvestment of any funds in corporations doing business with the government of Sudan and strongly recommends that the three state retirement boards not invest any further assets in a corporation that has any economic dealings with that outlaw government, and be it further Resolved: That the General Assembly strongly recommends that the state’s policy of disinvestment should remain in force with respect to a specific SATURDAY, JUNE 4, 2005 1543 corporation until there is undisputed documented evidence that it has severed all ties with the government of Sudan, and be it further Resolved: That the General Assembly strongly recommends that the state’s overall policy of disinvestment should remain in force until the United States declares that the government of Sudan has ceased all genocidal activities and is treating all of its citizens with dignity and respect, and be it further Resolved: That the United States Congress should adopt S.495 in order to strengthen American sanctions against Sudan and that for similar reasons the executive branch of the federal government should enforce Executive Order 13067, and be it further Resolved: That the Secretary of the Senate be directed to send a copy of this resolution to State Treasurer Jeb Spaulding, U.S. Secretary of State Condoleezza Rice, and to the members of the Vermont Congressional delegation. Rules Suspended; Third Reading Ordered, Rules Suspended; Bill Passed in Concurrence; Rules Suspended; Bill Messaged H. 86. Appearing on the Calendar for notice, on motion of Senator Welch, the rules were suspended and House bill entitled: An act relating to shortened property tax redemption period. Was taken up for immediate consideration. Senator Condos, for the Committee on Government Operations, to which the bill was referred, reported recommending that the bill ought to pass in concurrence. Thereupon, the bill was read the second time by title only pursuant to Rule 43, and third reading of the bill was ordered. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was placed on all remaining stages of its passage in concurrence forthwith. Thereupon, the bill was read the third time and passed in concurrence. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Senate Resolution Adopted Senate resolution of the following title was offered, read and adopted, and is as follows: By Senators Cummings, Doyle and Scott, 1544 JOURNAL OF THE SENATE S.R. 6. Senate resolution congratulating the award winning Central Vermont Community Action Head Start program. Whereas, in 1965, the United States Office of Economic Opportunity established Project Head Start as an eight-week summer program with two goals: first, to help impoverished preschool children be better prepared for school, and second, to assist in breaking the cycle of multigenerational poverty, and Whereas, the success of the first summer’s sessions soon led to the creation of full-time Head Start programs nationwide, and Whereas, Head Start is structured as a comprehensive program designed to meet these youngsters emotional, health, nutritional, psychological, and social needs, and Whereas, Head Start is now a program within the United States Department of Health and Human Services’ Administration on Children, Youth and Families, and Whereas, the program is administered locally through community-based organizations and school systems, and the Central Vermont Community Action (CVCA) is one of these local administrative agencies, and Whereas, CVCA’s Head Start partners include the child development program at the Vermont Agency of Human Services, the Vermont Department of Education, the public school systems in central Vermont, parent-child centers, registered family child care programs, and licensed child care centers, and Whereas, in December 2004, as a result of the most recent federal monitoring review, the United States Administration on Children, Youth and Families presented CVCA Head Start a Program of Excellence Award, and Whereas, a second national honor was bestowed recently on the CVCA Head Start when the National Head Start Association designated it as one of the 40 outstanding Head Start programs in the entire country, and Whereas, both these awards are strong evidence of the CVCA’s tremendous success as a Head Start program administrator, and Whereas, the CVCA Head Start, in celebration of these awards, and the 40th anniversary of Head Start, will hold a commemorative event on the State House lawn on Friday June 10, now therefore be it Resolved by the Senate: That the Senate of the State of Vermont congratulates the award winning Central Vermont Community Action Head Start program, and be it further SATURDAY, JUNE 4, 2005 1545 Resolved: That the Secretary of the Senate be directed to send a copy of this resolution to Marianne Miller, director of the Central Vermont Community Action Head Start. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged H. 540. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on House bill entitled: An act relating to agricultural and forest land use value program. Was taken up for immediate consideration. Senator Kittell, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon House bill entitled: H. 540. program. An act relating to the agricultural and forest land use value Respectfully reports that it has met and considered the same and recommends that the House accede to the Senate proposal of amendment and that the bill be further amended by adding three new sections, to be Secs. 3, 4, and 5 to read as follows: Sec. 3. 32 V.S.A. § 3752(1)(C)(iii) is amended to read: (iii) exceptions to these income requirements may be made in cases of orchard lands planted to fruit producing trees, bushes or vines which are not yet of bearing age. For the purposes of this subdivision section, the term "farm crops" also includes animal fiber, cider, wine and cheese produced on the enrolled land or on a housesite adjoining the enrolled land from agricultural products grown on the enrolled land. Sec. 4. REPORT The agency of agriculture, food and markets with the assistance of the departments of economic development and of forests, parks and recreation and in consultation with the division of property valuation and review shall conduct a review of existing Vermont programs and examine programs in other states. The report shall recommend initiatives that promote the economic 1546 JOURNAL OF THE SENATE development of small farms and agriculture in Vermont. The report shall be submitted to the house committee on agriculture and the senate committee on agriculture on or before December 1, 2005 with specific options for action by the general assembly targeted to value-added on-site farm and natural resources based enterprises. Sec. 5. REPORT The division of property valuation and review and the agency of agriculture, food and markets shall report on or before January 15, 2006 to the House Committee on Ways and Means and the Senate Committee on Finance and the House and Senate Committees on Agriculture on farm processing facilities enrolled in the use value appraisal program. SARA BRANNON KITTELL CLAIRE D. AYER WENDY L. WILTON Committee on the part of the Senate BILL BOTZOW JOHN MALCOLM Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Rules Suspended; Third Reading Ordered, Rules Suspended; Bill Passed in Concurrence; Rules Suspended; Bill Messaged H. 541. Appearing on the Calendar for notice, on motion of Senator Welch, the rules were suspended and House bill entitled: An act relating to appointment of a sergeant major and a chief master sergeant in the Vermont national guard. Was taken up for immediate consideration. Senator Condos, for the Committee on Government Operations, to which the bill was referred, reported recommending that the bill ought to pass in concurrence. Thereupon, the bill was read the second time by title only pursuant to Rule 43, and third reading of the bill was ordered. SATURDAY, JUNE 4, 2005 1547 Thereupon, on motion of Senator Welch, the rules were suspended and the bill was placed on all remaining stages of its passage in concurrence forthwith. Thereupon, the bill was read the third time and passed in concurrence. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith. Message from the House No. 89 A message was received from the House of Representatives by Mr. MaGill, its First Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate the House has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses on House bill of the following title: H. 130. An act relating to executive branch fees. And has adopted the same on its part. The House has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses on Senate bill of the following title: S. 156. An act relating to corrections. And has adopted the same on its part. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Bill Messaged S. 156. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to corrections. Was taken up for immediate consideration. Senator Sears, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 156. An act relating to corrections. 1548 JOURNAL OF THE SENATE Respectfully reports that it has met and considered the same and recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: * * * Findings * * * Sec. 1. FINDINGS The general assembly finds that: (1) Even if the general assembly takes no action to reduce prison overcrowding by releasing additional offenders, thousands of inmates leave Vermont correctional facilities and reenter the community every year. For example, during FY04, approximately 600,000 individuals were released from prisons in the United States and 10,000,000 were released from jails. During that same period, Vermont released 4,875 incarcerated individuals back into the community. (2) It is crucial that decisions of the legislative, judicial, and executive branches aggressively advance the mission of the department of corrections to work with and gain the support of community members to achieve the successful reintegration of offenders into the community. (3) Although the total incidents of reported crime in Vermont have declined steadily since the early 1990s, the overall level of serious crime has remained fairly constant. Drug-related offenses have quintupled during the last five years. (4) The number of women arrested in Vermont increased 59 percent in seven years, rising from 3,774 arrests in 1995 to 5,966 arrests in 2002. The number of women incarcerated in Vermont has increased from 29 inmates in 1995 to more than 140 today, most of whom are incarcerated for nonviolent substance-abuse-related offenses. (5) One of every five men in Vermont between the ages of 21 and 23 has been convicted of a criminal offense and sentenced to some form of supervision by the commissioner of corrections. (6) The rate at which Vermont incarcerated individuals convicted of crimes more than doubled in a ten-year period, rising from a daily average of 989 in FY95 to a daily average of 1,992 in FY04. In one generation, the average number of individuals incarcerated on any one day rose from 559 (in FY85) to 1,992 (in FY04). (7) The cost of housing and supervising incarcerated individuals in Vermont more than doubled during the same period, increasing from $44 million in FY95 to $98 million in FY04. The FY04 figure was more than SATURDAY, JUNE 4, 2005 1549 6-1/2 times the cost of housing and supervising the incarcerated population in FY85, when that expense was $15 million. (8) The growth in available corrections beds has not kept pace with the growth of Vermont’s sentenced and detained population, and the state has been forced to transfer inmates to facilities outside Vermont. Despite the addition of 350 corrections beds at the newly-opened Southern State Correctional Facility in Springfield, an average of 429 offenders was housed in an out-of-state correctional facility on any given day between July 1, 2004 and March 15, 2005. (9) The number of offenders released to the community under the supervision of the commissioner of corrections has doubled in the last ten years. On a typical day in 2004, 12,372 Vermonters were living in the community under some form of supervision of the commissioner. Of that number, 849 individuals were on conditional reentry status, 888 were on preapproved furlough, 795 had been released on parole, 73 had received a supervised community sentence, and 9,767 were on probation. (10) The number of offenders convicted of violent felonies (such as sexual assault, domestic assault, aggravated assault, and other felonies against persons) who are supervised in the community has increased by 33 percent during the last eight years, rising from 984 in FY96 to 1,317 in FY04. (11) The number of correctional officers supervising offenders in the community has not kept pace with the growth in supervisees, increasing only 67 percent since 1993. (12) The number of individuals detained pending resolution of criminal charges increased by 300 percent between FY93 and FY03. As of June 30, 2004, detainees represented 382 of the 2,033 individuals incarcerated in and out of state. Pretrial detainees occupy 24 percent of the approximately 1,600 corrections beds available in state. (13) On a typical day in 2004, approximately 130 inmates who had served their minimum sentence and were otherwise eligible for release into the community remained incarcerated because of their inability to obtain suitable housing, resulting in an annual cost of at least $2,275,000 to house other offenders in out-of-state facilities. (14) In its report dated August 19, 2004, the governor’s commission on corrections overcrowding determined that the above trends, if continued, will: (A) Likely cause the state to increase its reliance on out-of-state prison beds or to build more correctional facilities within Vermont. 1550 JOURNAL OF THE SENATE (B) Result in unsustainable spending to provide adequate space for and supervision of offenders; (C) Compromise the state’s ability to provide humane and enlightened services and ensure safe and secure correctional facilities and communities. (15) The total capital costs of siting the Southern State Correctional Facility in Springfield were $34,600,000.00. (16) In its August 19, 2004 report, the governor’s commission on corrections overcrowding also determined that the overcrowded conditions in state correctional facilities and the increased use of the facilities for pretrial detainees have: (A) Compromised the department’s statutory mission. (B) Increased personal danger to inmates and staff. (C) Caused unacceptable hardship for offenders and families of offenders who are in out-of-state institutions. (D) Resulted in excessive and out-of-control cost at the expense of other worthy governmental efforts. (E) Disrupted the reasonable and well-designed program of treatment by the thoughtful integration of offenders into the community upon completion of their sentences. (F) Resulted in unhealthy and unwholesome practices in the correctional facilities. (G) Damaged staff morale. (H) Contributed to the death of inmates. (I) Resulted in public dissatisfaction and decreased credibility for the department of corrections and the entire criminal justice system. (J) Prohibited a range of palliative programs from being applied efficiently or effectively, which results in the loss of important opportunities to assist inmates to achieve necessary personal change and which, in turn, adds to the already remarkable cost of the corrections system. (17) In its report dated August 19, 2004, the governor’s commission on corrections overcrowding recommended a range of solutions to reduce overcrowding, including the provision of grants to communities and private organizations to help establish supervised transitional housing and the creation of alternatives to incarceration for many of the state’s female offenders. SATURDAY, JUNE 4, 2005 1551 (18) It is equally imperative both that the three regional facilities be used for their intended function as reintegration facilities for offenders preparing for imminent reentry into the community and that prisoners housed in out-of-state facilities be brought home to Vermont. (19) In its August 19, 2004 report, the governor’s commission on corrections overcrowding cogently stated: “The problem [in corrections] has grown over two decades and has greatly accelerated in the last 4 years. The problem is now to the point where solutions required must be bold in order to have a noticeable impact. Marginal and incremental changes are welcome and will over time help, but they must be anchored by actions that are significant enough that change is real and substantial.” * * * Good Time * * * Sec. 2. REDUCTIONS OF TERM (a) Retrospective award. Each individual in the custody of the commissioner of corrections who is serving a term of incarceration on July 1, 2005 shall be awarded all reductions in the minimum and maximum terms to which that inmate is entitled as of the end of the day on June 30, 2005, consistent with those provisions of 28 V.S.A. § 811 that were in force when the inmate’s crime was committed. (b) Prospective award. Notwithstanding any provision of law to the contrary, each individual in the custody of the commissioner of corrections who is serving a term of incarceration for a crime committed on or before June 30, 2005, shall, for purposes of calculating reductions in that inmate’s term of confinement subsequent to June 30, 2005, prospectively be awarded, in total, all reductions in the minimum and maximum terms of confinement to which that inmate would potentially be entitled in the future under the system that was in place at the time his or her crime was committed; provided that this subsection shall not apply to reductions pursuant to 28 V.S.A. § 811(d) (work camps) as that subsection appears before July 1, 2005, which shall be awarded at the time the reductions are earned under the system that was in place at the time the crime was committed. (c) The department shall apply the provisions of subsections (a) and (b) of this section as appropriate to persons ultimately convicted of a crime committed before July 1, 2005 at the time of sentencing. (d) Pursuant to 13 V.S.A. § 5305, the department shall notify victims of the impact this section has on the minimum and maximum terms of incarceration for all pertinent inmates. The department shall also provide notice to each inmate regarding the impact this section has on that inmate’s minimum and maximum terms of incarceration. 1552 JOURNAL OF THE SENATE Sec. 3. REPEAL 28 V.S.A. § 811 (reduction in term for good behavior) is repealed. Sec. 4. 28 V.S.A. § 811 is added to read: § 811. WORK CAMPS; REDUCTION OF TERM A reduction of up to 30 days in the minimum and maximum terms of confinement may be made in accordance with a policy established by the director of a work camp in which an inmate is confined for each month during which the inmate demonstrates, beyond the level normally expected, consistent program performance or meritorious work performance. Sec. 5. WORK CAMP; GOOD TIME (a) Except as provided in subsection (b) of this section, for each inmate serving a term of incarceration in a work camp on or after July 1, 2005 who has been convicted of a crime committed between July 1, 2000 and June 30, 2005, a reduction of up to 30 days in the minimum term of confinement and up to 15 days in the maximum term of confinement may be made in accordance with a policy established by the director of the work camp in which the inmate is confined for each month during which the inmate demonstrates, beyond the level normally expected, consistent high program performance or meritorious work performance. (b) Subsection (a) of this section shall not apply to any inmate who receives a prospective award, in total, of all reductions to which that inmate would potentially be entitled in the future pursuant to Sec. 2(b) of this act, who is subsequently transferred to a work camp. * * * Furlough * * * Sec. 6. 28 V.S.A. § 808 is amended to read: § 808. FURLOUGHS GRANTED TO OFFENDERS AND INMATES; MEDICAL FURLOUGH (a) The department may extend the limits of the place of confinement of an inmate at any correctional facility if the inmate agrees to comply with such conditions of supervision the department, in its sole discretion, deems appropriate for that inmate’s furlough. The department may authorize furlough for any of the following reasons: *** (7) When recommended by the department and ordered by a court. The inmate may be sentenced to serve a term of imprisonment but placed by a court on furlough to participate in such programs administered by the department in SATURDAY, JUNE 4, 2005 1553 the community that reduce the offender’s risk to reoffend or that provide reparation to the community in the form of supervised work activities; or (8) To prepare for reentry into the community. (A) Any offender sentenced to incarceration may be furloughed to the community up to 90 days prior to completion of the minimum sentence, at the commissioner’s discretion and in accordance with rules adopted pursuant to subdivision(C) of this subdivision (8), provided that an offender sentenced to a minimum term of fewer than 180 days shall not be eligible for furlough under this subdivision until the offender has served at least one-half of his or her minimum term of incarceration. (B) Except as provided in subdivision (D) of this subdivision (8), any offender sentenced to incarceration is eligible to earn five days toward reintegration furlough, to be applied prior to the expiration of the offender’s minimum term, for each month served in the correctional facility during which the inmate has complied with the case plan prepared pursuant to subsection 1(b) of this title and has obeyed all rules and regulations of the facility. Days shall be awarded only if the commissioner determines, in his or her sole discretion, that they have been earned in accordance with rules adopted by the department pursuant to subdivision (C) of this subdivision (8) and shall in no event be awarded automatically. The commissioner’s determination shall be final. Days earned under this subdivision may be awarded in addition to the reintegration furlough authorized in subdivision (A) of this subdivision (8). The commissioner shall have the discretion to determine the frequency with which calculations under this subdivision shall be made provided they are made at least as frequently as every six months. (C) The commissioner may authorize reintegration furlough under subdivisions (A) and (B) of this subdivision (8) only if the days are awarded in accordance with rules adopted pursuant to chapter 25 of Title 3 designed to: (i) Evaluate factors such as risk of reoffense, history of violent behavior, history of compliance with community supervision, compliance with the case plan, progress in treatment programs designed to reduce criminal risk, and obedience to rules and regulations of the facility. (ii) Ensure adequate departmental supervision of the offender when furloughed into the community. (D) The commissioner may not award days toward reintegration furlough under subdivision (B) of this subdivision (8) if the offender is sentenced to a minimum term of incarceration in excess of five years or is incarcerated for a conviction of one or more of the following crimes: 1554 JOURNAL OF THE SENATE (i) Arson causing death as defined in 13 V.S.A. § 501; (ii) Assault and robbery with a dangerous weapon as defined in 13 V.S.A. § 608(b); (iii) Assault and robbery causing bodily injury as defined in 13 V.S.A. § 608(c); (iv) Aggravated assault as defined in 13 V.S.A. § 1024; (v) Murder as defined in 13 V.S.A. § 2301; (vi) Manslaughter as defined in 13 V.S.A. § 2304; (vii) Kidnapping as defined in 13 V.S.A. § 2405; (viii) Unlawful restraint as defined in 13 V.S.A. §§ 2406 and 2407; (ix) Maiming as defined in 13 V.S.A. § 2701; (x) Sexual assault as defined in 13 V.S.A. § 3252(a)(1) or (2); (xi) Aggravated sexual assault as defined in 13 V.S.A. § 3253; (xii) Burglary into an occupied dwelling as defined in 13 V.S.A. § 1201(c); or (xiii) Lewd or lascivious conduct with a child as defined in 13 V.S.A. § 2602. *** (e) The commissioner may enter into and execute a contract with authorities in other states for the furlough of any inmate from any facility to another state when, in his opinion, the inmate needs special treatment in the other state or for a particular reason consistent with the rehabilitation of the inmate. [Deleted.] *** (g) Treatment furlough. The department may place on furlough an inmate who has not yet served the minimum term of the sentence, provided the approval of the sentencing judge is first obtained, who, in the department’s determination, needs residential treatment services not available in a correctional facility. The services may include treatment for substance abuse or personal violence or any other condition that the department has determined should be addressed in order to reduce the inmate’s risk to reoffend or cause harm to himself or herself or to others in the facility. The inmate shall be released only to a hospital or licensed inpatient residential treatment facility that provides services to the general population. The state’s share of the cost SATURDAY, JUNE 4, 2005 1555 of placement in such a facility, net of any private or federal participation, shall be paid pursuant to memoranda of agreement between and within state agencies reflective of their shared responsibilities to maximize the efficient and effective use of state resources. In the event that a memorandum of agreement cannot be reached, the secretary of administration shall make a final determination as to the manner in which costs will be allocated. Sec. 7. EFFECT OF REINTEGRATION FURLOUGH It is the intent of the general assembly that granting the commissioner of corrections the ability to authorize reintegration furlough in Sec. 6 of this act shall have the effect of reducing the total number of Vermont offenders housed in out-of-state correctional facilities. * * * Graduated Sanctions * * * Sec. 8. 28 V.S.A. § 304 is amended to read: § 304. DISPOSITION ALTERNATIVES UPON VIOLATION OF PROBATION (a) If a violation is established by a proceeding conducted in accordance with section 302 of this title, the court may, in its discretion, revoke probation and require the probationer to serve the sentence which was suspended or order that the sentence be served in the community pursuant to the provisions of chapter 6 of this title. (b) As an alternative to revocation and imposition of sentence as provided in subsection (a) of this section, the court, in its discretion, after a violation has been established, may: (1) Continue the probationer on the existing sentence; or (2) Effect, in accordance with subsection 253(b) of this title, necessary or desirable changes or enlargements in the conditions of probation; or (3) Conduct a formal or informal conference with the probationer in order to reemphasize to him or her the necessity of compliance with the conditions of probation; or (4) Issue a formal or informal warning to the probationer that further violations may result in revocation of probation by the court.; or (5) Continue the probationer on the existing sentence, but require the probationer to serve any portion of the sentence. (c) Prior to ordering either revocation or an alternative sanction for a violation of probation in accordance with subsection (b) of this section, the court shall consider, but has complete discretion whether to follow, sanction 1556 JOURNAL OF THE SENATE guidelines established by the department of corrections pursuant to subsection (e) of this section. (d) No plea agreement shall limit the court’s discretion under this section. (e) The department of corrections shall adopt rules pursuant to chapter 25 of Title 3 that establish graduated sanction guidelines for probation violations as an alternative to revocation and imposition of the original sentence. These guidelines do not grant the department any authority to impose sanctions for probation violations. * * * Deferred Sentences * * * Sec. 9. 13 V.S.A. § 7041 is amended to read: § 7041. DEFERRED SENTENCE (a) Upon an adjudication of guilt and after the filing of a presentence investigation report, the court may defer sentencing and place the respondent on probation upon such terms and conditions as it may require if a written agreement concerning the deferring of sentence is entered into between the state’s attorney and the respondent and filed with the clerk of the court. (b) Notwithstanding subsection (a) of this section, the court may defer sentencing and place the respondent on probation without a written agreement between the state’s attorney and the respondent if the following conditions are met: (1) the respondent is 28 years old or younger; (2) the crime for which the respondent is being sentenced is not a listed crime as defined in subdivision 5301(7) of this title; (3) the court orders a presentence investigation in accordance with the procedures set forth in Rule 32 of the Vermont Rules of Criminal Procedure, unless the state’s attorney agrees to waive the presentence investigation; (4) the court permits the victim to submit a written or oral statement concerning the consideration of deferment of sentence; (5) the court reviews the presentence investigation and the victim’s impact statement with the parties; and (6) the court determines that deferring sentence is in the interest of justice. (c) Entry of deferment of sentence shall constitute an appealable judgment for purposes of appeal in accordance with sections 2381-2390 section 2383 of Title 12 and Rule 3 of the Vermont Rules of Appellate Procedure. Except as otherwise provided, entry of deferment of sentence shall constitute imposition SATURDAY, JUNE 4, 2005 1557 of sentence solely for the purpose of sentence review in accordance with section 7042 of this title. Thereafter the court may impose sentence at any time within five years from and after the date of entry of deferment The court may impose sentence at any time if the respondent violates the conditions of the deferred sentence during the period of deferment. (b)(d) Upon violation of the terms of probation or of the deferred sentence agreement, the court shall impose sentence. Upon fulfillment of the terms of probation and of the deferred sentence agreement, the court shall strike the adjudication of guilt and discharge the respondent. Upon discharge, the record of the criminal proceedings shall be expunged as if an application pursuant to section 5538 of Title 33 had been granted, except that the record shall not be expunged until restitution has been paid in full, absent a finding of good cause by the court. (c)(e) A deferred sentence imposed under subsection (a) or (b) of this section may include a restitution order issued pursuant to section 7043 of this title. Nonpayment of restitution shall not constitute grounds for imposition of the underlying sentence. * * * Conditions of Release * * * Sec. 10. 13 V.S.A. § 7554(a) is amended to read: § 7554. RELEASE PRIOR TO TRIAL (a) Any person charged with an offense, other than a person held without bail under section 7553 or 7553a of this title, shall at his or her appearance before a judicial officer be ordered released pending trial in accordance with this section. (1) The person shall be ordered released on personal recognizance or upon the execution of an unsecured appearance bond in an amount specified by the judicial officer unless the judicial officer determines that such a release will not reasonably assure the appearance of the person as required. In determining whether the person presents a risk of nonappearance, the judicial officer shall consider, in addition to any other factors, the seriousness of the offense charged and the number of offenses with which the person is charged. If the officer determines that such a release will not reasonably assure the appearance of the person as required, the officer shall, either in lieu of or in addition to the above methods of release, impose the least restrictive of the following conditions or the least restrictive combination of the following conditions which will reasonably assure the appearance of the person as required: (A) Place the person in the custody of a designated person or organization agreeing to supervise him or her. 1558 JOURNAL OF THE SENATE (B) Place restrictions on the travel, association or place of abode of the person during the period of release. (C) Require the person to participate in an alcohol or drug treatment program. The judicial officer shall take into consideration the defendant’s ability to comply with an order of treatment and the availability of treatment resources. (D) Require the execution of a secured appearance bond in a specified amount and the deposit with the clerk of the court, in cash or other security as directed, of a sum not to exceed ten percent of the amount of the bond, such deposit to be returned upon the appearance of the person as required. (D)(E) Require the execution of a surety bond with sufficient solvent sureties, or the deposit of cash in lieu thereof. (E)(F) Require the deposit with the clerk of court of cash bail in a specified amount. (F)(G) Impose any other condition found reasonably necessary to assure appearance as required, including a condition requiring that the person return to custody after specified hours. (2) If the judicial officer determines that conditions of release imposed to assure appearance will not reasonably protect the public, the judicial officer may in addition impose the least restrictive of the following conditions or the least restrictive combination of the following conditions which will reasonably assure protection of the public: (A) Place the person in the custody of a designated person or organization agreeing to supervise him or her. (B) Place restrictions on the travel, association, or place of abode of the person during the period of release. (C) Require the person to participate in an alcohol or drug treatment program. The judicial officer shall take into consideration the defendant’s ability to comply with an order of treatment and the availability of treatment resources. (D) Impose any other condition found reasonably necessary to protect the public, except that a physically restrictive condition may only be imposed in extraordinary circumstances. (3) A judicial officer may order that a defendant not harass or cause to be harassed a victim or potential witness. This order shall take effect immediately, regardless of whether the defendant is incarcerated or released. SATURDAY, JUNE 4, 2005 1559 *** * * * Parole Board * * * Sec. 11. 28 V.S.A. § 451 is amended to read: § 451. CREATION OF BOARD (a) A parole board of five members is created. The governor, with the advice and consent of the senate, shall appoint five regular members and two alternates for terms of three years in such a manner that no more than three terms shall expire annually. Initial terms may be less than three years. Each member and alternate shall hold office until a successor is appointed and qualified. The governor shall designate the board’s chair. As far as practicable, the governor shall appoint as members persons who have knowledge of and experience in correctional treatment, crime prevention or human relations, and shall give consideration, as far as practicable, to geographic representation of the state. The board shall select one of its members to serve as vice chair of the board. If the chair resigns or is otherwise permanently unable to serve on the board, the vice chair shall serve as interim chair until the governor designates a new chair pursuant to this section. The chair or the executive director may assign alternates to serve on the board in the absence of a regular member and such alternates shall have all the powers and authority of a regular member when so assigned. (b) Three members of the board shall constitute a quorum for the conduct of a meeting. Notwithstanding section 172 of Title 1, the concurrence of a majority of members present at a parole board meeting shall be necessary and sufficient for board action. (c) The chair of the parole board shall be entitled to compensation in the amount of $13,000.00 $20,500.00 annually, effective on the first pay period in fiscal year 2006, which shall be in lieu of any per diem otherwise authorized by law. If the vice chair assumes the duties of the chair for a period in excess of 30 consecutive days, the compensation otherwise payable to the chair during his or her absence shall be paid to the vice chair. Sec. 12. 32 V.S.A. § 1010(f) is amended to read: (f) Members of the parole board shall receive $80.00 $100.00 per diem for each day of official duties together with reimbursement of reasonable expenses incurred in the performance of their duties. 1560 JOURNAL OF THE SENATE * * * Director of Parole Board * * * Sec. 13. PAROLE BOARD EXECUTIVE OFFICER; REDESIGNATION OF POSITION Notwithstanding any provision of law to the contrary, the General Assembly authorizes and directs the redesignation, effective July 1, 2005, of the following classified position as an exempt position: one (1) Parole Board Executive Officer, which shall be known after redesignation as the Parole Board Director. Sec. 14. 28 V.S.A. § 455 is added to read: § 455. DIRECTOR (a) The position of parole board director is created. The director shall be appointed by the governor after consultation with the board. (b) The director shall serve for a term of four years commencing on March 1 and continuing until his or her successor is appointed. (c) The director shall be exempt from classified state service. (d) The secretary of human services, in consultation with the parole board and the department of human resources, shall establish the minimum and preferred qualifications, duties, and compensation of the director. * * * Parole Board; Recommendations; Reports * * * Sec. 15. PAROLE BOARD; RECOMMENDED ACTIONS; REPORTS (a) The secretary of human services, in consultation with the chair of the parole board, shall: (1) Revise the interim parole board manual dated November 1, 1997 to provide the parole board, its staff, and the department of corrections with necessary guidance to perform parole-related duties. (2) Develop guidelines to assist the board to make consistent, empirically based decisions. (3) Develop training and orientation for parole board members and staff concerning board policies and procedures. (4) Ensure that all parole board members and staff engage in training programs conducted by entities such as the Association of Paroling Authorities, International (APAI) and the American Probation and Parole Association (APPA). (b) On or before January 15, 2006, the secretary of human services shall report to the senate and house committees on judiciary and institutions and the SATURDAY, JUNE 4, 2005 1561 joint legislative corrections oversight committee concerning implementation of this section. (c) The chair of the parole board shall review and evaluate the size and structure of the board and consider whether an increased membership or an alternative structure, or both, would enhance the board’s effectiveness. On or before January 15, 2006, the chair shall report the results of this evaluation to the house and senate committees on institutions and judiciary together with any proposals for legislative amendments. * * * Transitional Housing * * * Sec. 16. TRANSITIONAL HOUSING; PROPOSAL; STUDY COMMITTEE (a) It is imperative that the department of corrections engage in collaborative or strategic planning to identify specific housing needs by region and type, and the associated needs of offenders returning to the community. The department’s current practice of “buying beds” in the community does not adequately address the challenges, costs, and impacts of developing and operating successful transitional housing. It is the intent of the general assembly that the department develop and sustain new models of supportive, transitional housing. (b) On or before September 1, 2005, the department shall identify, through a statewide public process, at least one community interested in being active in a study committee designed to develop a proposal to provide transitional housing to assist offenders achieve successful reintegration into the community following a term of incarceration. Upon identifying an interested community, the department shall call an initial meeting of the study committee to include the following members: (1) The commissioner of corrections or the commissioner’s designee. (2) The superintendent of the office of probation and parole serving the pertinent community or the superintendent’s designee. (3) A representative of the law enforcement entity that serves the pertinent community. (4) A representative of the Vermont League of Cities and Towns to be selected by the league’s governing board. (5) A representative of the pertinent community’s governing body. (6) A representative of a local planning commission or if none exists, then a representative of the regional planning commission serving the pertinent community. 1562 JOURNAL OF THE SENATE (7) The state’s attorney serving the pertinent community or the state’s attorney’s designee. (8) A representative of the office of the public defender serving the pertinent community. (9) The director of a community justice center, if one exists, or the director’s designee. (10) The executive director of the Vermont center for crime victim services or the executive director’s designee. (11) The field director of the district office of the agency of human services serving the pertinent community or the field director’s designee. (12) The executive director of the Vermont housing and conservation board or the executive director’s designee. (13) A representative of a local community land trust, if one exists. (14) A representative of a local housing authority, if one exists. (15) A representative of one or more neighborhood associations, if one exists. (16) A representative from the department of employment and training to be selected by the commissioner of the department. (17) Representatives of such other entity or entities as the members of the committee deem appropriate. (c) The study committee may seek information or advice from such other individuals, including former inmates who have successfully reintegrated into the community, or entities as it deems appropriate. (d) On or before January 15, 2006, the study committee shall provide to the house and senate committees on appropriations, judiciary, and institutions, the house committee on human services, and the senate committee on health and welfare a detailed proposal by which the state, acting on its own or in conjunction with community partners, could develop and operate communitybased structured transitional housing for offenders, which proposal shall include: (1) An outline of the administrative and operational structure of the facility, including community partnerships, plans to ensure adequate staffing, the criteria under which offenders would be released into and from the transitional housing facility, and the programs and services, which shall include employment and permanent housing assistance and prescription drug continuity, to be offered or the means by which programs and services would be accessed. SATURDAY, JUNE 4, 2005 1563 (2) A budget detailing the cost of initiating and operating the housing, including potential nonstate funding sources and a projection of the financial impact the proposal would have on future state capital and general fund appropriations. (3) A plan for educating and engaging the support of the community for transitional housing. (4) A plan for notifying victims and responding to their concerns. (5) A timeline for the creation and start-up of the transitional housing. (e) At its initial meeting, the study committee shall select a member to serve as chair. The department of corrections shall provide administrative support to the committee. * * * Departmental Mission; Reintegration Plan * * * Sec. 17. 28 V.S.A. § 1(b) is amended to read: (b) The department shall formulate its programs and policies recognizing that almost all criminal offenders ultimately return to the community, and that the traditional institutional prisons fail to reform or rehabilitate, operating instead to increase the risk of continued criminal acts following release. The department shall strive to develop and implement a comprehensive program which will provide necessary closed custodial confinement of frequent, dangerous offenders, but which also will establish as its primary objective the disciplined preparation of offenders for their responsible roles in the open community. The department shall ensure that the comprehensive program required by this subsection includes a process by which each offender sentenced to any term of imprisonment other than for life without parole, within 30 days after receiving his or her sentence, shall begin to develop and implement a plan preparing for return to the community. * * * Corrections Oversight Committee * * * Sec. 18. REPEAL Secs. 170d and 170e of No. 142 of the Acts of the 2001 Adj. Sess. (2002) (joint legislative corrections oversight committee) are repealed. 1564 JOURNAL OF THE SENATE Sec. 19. 2 V.S.A. chapter 22 is added to read: CHAPTER 22. JOINT LEGISLATIVE CORRECTIONS OVERSIGHT COMMITTEE § 801. CREATION OF COMMITTEE (a) There is created a joint legislative corrections oversight committee whose membership shall be appointed each biennial session of the general assembly. The committee shall exercise oversight over the department of corrections and work with and provide assistance to other legislative committees on matters related to corrections policies. (b) The committee shall be composed of eight members: four members of the house of representatives, who shall not all be from the same party, appointed by the speaker of the house; and four members of the senate, who shall not all be from the same party, appointed by the committee on committees. In addition to one member-at-large appointed from each chamber, one appointment shall be made from each of the following house and senate committees: appropriations, judiciary, and institutions. (c) The committee shall elect a chair, vice chair, and clerk from among its members and shall adopt rules of procedure. The chairmanship shall rotate biennially between the house and the senate members. The committee shall keep minutes of its meetings and maintain a file thereof. A quorum shall consist of five members. (d) When the general assembly is in session, the committee shall meet at the call of the chair. The committee may meet four times during adjournment, and may meet more often subject to approval of the speaker of the house and the president pro tempore of the senate. (e) For attendance at a meeting when the general assembly is not in session, members of the committee shall be entitled to compensation for services and reimbursement of expenses as provided under subsection 406(a) of this title. (f) The professional and clerical services of the joint fiscal office and the legislative council shall be available to the committee. § 802. DUTIES (a) In addition to the general responsibilities set forth in subsection 801(a) of this title, the committee shall: (1) Review and make recommendations regarding the department of corrections’ strategic, operating, and capital plans. (2) Review and make recommendations to the house and senate committees on appropriations regarding departmental budget proposals. SATURDAY, JUNE 4, 2005 1565 (3) Provide general oversight on departmental policy development. (4) Encourage improved communication between the department and other relevant components of the administrative branch and the criminal justice system. (b) At least annually, the committee shall report its activities, together with recommendations, if any, to the general assembly. Sec. 20. INCENTIVES; REPORT The department of corrections and the joint legislative corrections oversight committee shall jointly review and evaluate potential incentive programs and management strategies for use within the state’s correctional facilities to encourage and reinforce good behavior, reduce high-risk behaviors, and encourage participation in programming. The department shall review strategies used in other jurisdictions and recommend to the committee those strategies it finds to be most suitable for use in Vermont. * * * Specialized Programming within Correctional Facilities * * * Sec. 21. SPECIALIZED SUBSTANCE ABUSE AND DOMESTIC VIOLENCE PROGRAMMING (a) In order to provide essential programming to inmates to assist with successful reintegration into the community, the department of corrections shall prepare a detailed proposal to provide specialized substance abuse and domestic violence programming to targeted offenders housed in correctional facilities, which may include out-of-state facilities. (b) The proposal required by this section shall include: (1) Details of the populations to be served, the levels of programming to be offered, and the locations in which the programs will occur. (2) A detailed time line regarding implementation of the proposed programming. (3) Provisions to ensure that programming is available to each eligible offender housed within a correctional facility regardless of whether it is possible that the offender will be released from that facility or transferred to a different correctional facility prior to completion of the programming. (4) Provisions to ensure that if an offender is released from a correctional facility or transferred to a different facility prior to completion of specialized substance abuse programming, or specialized domestic violence programming, or both, the commissioner shall ensure that the offender is able 1566 JOURNAL OF THE SENATE to continue programming in the community into which the offender is released or in the facility to which the offender is transferred. (5) Provisions to ensure initial and continuing education and certification of department employees necessary to offer the proposed programming. (6) Provisions to ensure that the services of contract providers are used in an efficient and cost-effective manner. (7) A detailed itemization of capital and general fund costs associated with the proposed programming. (8) A detailed evaluation of whether the proposal may have the effect of increasing the total inmate population and suggestions for ways in which this result might be avoided. The department shall work with the offices of the defender general, the state’s attorneys, and the court administrator to conduct the evaluation and develop the suggestions required by this subdivision. (c) The department shall present the detailed proposal to the joint legislative corrections oversight committee on or before November 1, 2005. * * * Ratio of Correctional Field Staff to Offenders in the Community * * * Sec. 22. DEPARTMENT OF CORRECTIONS; RULEMAKING Pursuant to chapter 25 of Title 3, the department of corrections shall adopt rules to ensure that the number of trained correctional field staff be sufficient and, if necessary, increased prior to the release of inmates into the community, and that offenders be released at a rate that permits adequate supervision, both to ensure community safety and to support successful reintegration of each offender. The commissioner of corrections shall report to the house and senate committees on appropriations, institutions, and the judiciary on or before January 15, 2006 regarding implementation of the rule or rules and shall, at that time, also present a draft of any proposed related legislation for the committees’ consideration. * * * Global Positioning System * * * Sec. 23. GLOBAL POSITIONING SYSTEM MONITORING (a) The department of corrections is authorized to implement a pilot program using a global positioning system (“GPS”) or other similar technology within the community pursuant to the terms of the plan submitted by the department to the house committees on appropriations and institutions in January 2005 (the “pilot program”); provided that the pilot program may only involve: (1) 20 offenders at any one time. SATURDAY, JUNE 4, 2005 1567 (2) Offenders convicted of D.U.I. pursuant to Title 23 and nonviolent offenders who might otherwise be incarcerated for violating the conditions of their release. (b) On or before January 15, 2006, the commissioner of corrections shall report to the house and senate committees on appropriations and on judiciary regarding the department’s progress in implementing the pilot program. * * * Indefinite Probation * * * Sec. 24. PROBATION; LENGTH OF TERM (a) On or before January 1, 2006, the department of corrections shall: (1) Identify each offender (the “misdemeanant”), sentenced prior to July 1, 2004, who is serving an indefinite term of probation solely in connection with one or more misdemeanors; (2) Categorize the misdemeanants into three groups by date of sentencing such that, for purposes of this section, the one-third with the earliest dates of sentencing shall be identified as Group A, the one-third with intermediate dates shall be Group B, and the one-third with the most recent dates shall be Group C; (3) Provide the three categorized lists of misdemeanants to the executive director of the office of state’s attorneys and to the Vermont center for crime victims services, restitution unit. (b) On or before July 1, 2006, the probation officers for misdemeanants in Group A shall review the case file for these misdemeanants and: (1) Shall file a petition with the sentencing court requesting discharge from probation for each misdemeanant in Group A for whom the department believes that termination is warranted by the conduct of the misdemeanant and the ends of justice; provided that a petition shall not be filed under this subdivision for any misdemeanant who has not completed programming consistent with his or her special conditions of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney who may object and request a hearing on the petition. (2) For each misdemeanant in Group A not included within subdivision (1) of this subsection, shall file a petition with the court requesting the court to extend the period of probation for a term not to exceed two years unless the court, in its sole discretion, specifically finds after a hearing that the interests of justice require a longer or an indefinite period of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney. 1568 JOURNAL OF THE SENATE (c) On or before January 1, 2007, the probation officers for misdemeanants in Group B shall review the case file for these misdemeanants and: (1) Shall file a petition with the sentencing court requesting discharge from probation for each misdemeanant in Group B for whom the department believes that termination is warranted by the conduct of the misdemeanant and the ends of justice; provided that a petition shall not be filed under this subdivision for any misdemeanant who has not completed programming consistent with his or her special conditions of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney who may object and request a hearing on the petition. (2) For each misdemeanant in Group B not included within subdivision (1) of this subsection, shall file a petition with the court requesting the court to extend the period of probation for a term not to exceed two years unless the court, in its sole discretion, specifically finds after a hearing that the interests of justice require a longer or an indefinite period of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney. (d) On or before July 1, 2007, the probation officers for misdemeanants in Group C shall review the case file for these misdemeanants and: (1) Shall file a petition with the sentencing court requesting discharge from probation for each misdemeanant in Group C for whom the department believes that termination is warranted by the conduct of the misdemeanant and the ends of justice; provided that a petition shall not be filed under this subdivision for any misdemeanant who has not completed programming consistent with his or her special conditions of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney who may object and request a hearing on the petition. (2) For each misdemeanant in Group C not included within subdivision (1) of this subsection, shall file a petition with the court requesting the court to extend the period of probation for a term not to exceed two years unless the court, in its sole discretion, specifically finds after a hearing that the interests of justice require a longer or an indefinite period of probation. Simultaneous with filing, notice of the petition shall be given to the state’s attorney. (e) Each victim who has requested timely notification from the department pursuant to 13 V.S.A. § 5305 shall receive notice of a petition filed under this section in connection with that victim’s case. (f) The department shall provide timely notification of each petition filed under this section to the Vermont center for crime victims services, restitution unit. SATURDAY, JUNE 4, 2005 1569 * * * Assault with Bodily Fluids * * * Sec. 25. 13 V.S.A. § 1028a is amended to read: § 1028a. ASSAULT OF CORRECTIONAL OFFICER; ASSAULT WITH BODILY FLUIDS *** (b) No person shall intentionally cause blood, vomitus, excrement, mucus, saliva, semen, or urine to come in contact with: (1) Any person lawfully present in a correctional facility unless the person’s presence within the facility requires the contact; or (2) An employee of a correctional facility acting in the scope of employment unless the employee’s scope of employment requires the contact. (c) A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both; except that a person who violates subsection (b) who has reason to know that he or she is infected with the human immunodeficiency virus (HIV), acquired immune deficiency syndrome (AIDS), or hepatitis C shall be imprisoned not more than five years or fined not more than $5,000.00, or both where transmission of the disease was possible by the action that occurred. (d) A sentence imposed for a conviction of this section shall be served consecutively with and not concurrently with any other sentence. * * * Use of Savings * * * Sec. 26. REDUCTION IN INCARCERATED POPULATION; USE OF SAVINGS (a) It is the intent of the general assembly that the provisions of this act will result in an eventual decrease in the total incarcerated population, and that offenders housed in out-of-state correctional facilities will be brought home to Vermont. It is also the intent of the general assembly that savings realized in any given fiscal year from the reduction in the incarcerated population will be dedicated to improving correctional services, including the provision of: (1) Adequate support, programming, and supervision for offenders within the community, including a sufficient number of trained correctional field staff as required by Sec. 22 of this act; and (2) Adequate programming and an adequate number and ratio of trained correctional officers within the correctional facilities. 1570 JOURNAL OF THE SENATE (b) On or before August 15, 2005, and on or before the 15th day of each of the subsequent 11 months, the department of corrections shall provide a report to the joint legislative corrections oversight committee detailing the following: (1) The number of offenders housed in out-of-state correctional facilities during the previous month. (2) The actual expense of housing offenders in out-of-state correctional facilities for the previous month. (3) A breakdown of how any excess allocation, which shall be calculated as the difference between the actual monthly expense and the budgeted monthly expense, shall be spent by the department pursuant to the provisions of subsection (a) of this section. (4) The number of offenders released under reintegration furlough pursuant to 28 V.S.A. § 808(a)(8) during the previous month. (5) Other information that the joint legislative corrections oversight committee may request. (c) On July 1, 2006 and July 1, 2007, the department of corrections shall provide to the joint legislative corrections oversight committee a detailed report that comprehensively analyzes the net increase or decrease in both financial expenditures and staff time resulting from the amendments contained in this act, including the manner in which savings in expenditures and time were redirected, which report shall specifically include: (1) The net gain in staff time resulting from the retrospective and prospective award of good time in Sec. 2 of this act and the repeal of 28 V.S.A. § 811 in Sec. 3 of this act and the purposes to which this gained time has been redirected. (2) The net change in financial expenditures and in staff time resulting from: (A) The creation of reintegration furlough in Sec. 6 of this act. (B) Amendments relating to graduated sanctions for violations of probation in Sec. 8 of this act. (C) Amendments relating to deferred sentences in Sec. 9 of this act. (D) Provisions requiring a reduction in the number of misdemeanants on indefinite probation in Sec. 24 of this act. (3) The purposes to which all savings in financial expenditures and in staff time identified pursuant to subdivision (2) of this subsection have been or will be redirected. SATURDAY, JUNE 4, 2005 1571 * * * Sexual Exploitation of Offenders * * * Sec. 27. SEXUAL EXPLOITATION OF OFFENDERS; WORKING GROUP (a) The following individuals shall form a working group to develop proposed legislation prohibiting the sexual exploitation of individuals within the Vermont correctional system: (1) The commissioner of corrections or the commissioner’s designee. (2) The director of the Vermont state employees’ association or the director’s designee. (3) The director of the prisoners’ rights office of the office of the defender general or the director’s designee. (4) The executive director of the office of state’s attorneys or the executive director’s designee. (5) The director of the Vermont Network Against Domestic Violence or the director’s designee. (6) The executive director of the Vermont commission on women or the executive director’s designee. (7) The executive director of the Center for Crime Victim Services, or the executive director’s designee. (b) On or before September 15, 2005, the working group shall present to the joint legislative corrections oversight committee (“COC”) a draft of proposed legislation, supported by all members of the working group, prohibiting the sexual exploitation of any individual who is in the custody of or confined by the department of corrections or who is being supervised by the department of corrections. The legislative council shall assist the working group to prepare the draft. The working group shall select one or more representatives who shall provide verbal status reports at each of the COC’s meetings held prior to September 15, 2005. (c) The COC shall review the draft proposed by the working group during any committee meetings held on and after September 15, 2005 and shall consider introducing the proposal, with or without amendments, as a bill during the 2006 legislative session. If the working group is unable to reach agreement on draft legislation as required by subsection (b) of this section, the COC shall prepare a draft bill addressing the issue for introduction during the 2006 legislative session. 1572 JOURNAL OF THE SENATE * * * Effective Date * * * Sec. 28. EFFECTIVE DATE This act shall take effect on July 1, 2005; provided: (1) Offenders convicted of a listed felony shall not be eligible for reintegration furlough under Sec. 6, 28 V.S.A. § 808(a)(8)(A), until completion of the rulemaking process required for that subdivision, which shall be no later than November 1, 2005. (2) Offenders shall not be eligible to earn days toward reintegration furlough under Sec. 6, 28 V.S.A. § 808(a)(8)(B), until completion of the rulemaking process required for that subdivision, which shall be no later than November 1, 2005. ADDENDUM TO THE Report of Committee of Conference S. 156. TO THE SENATE AND HOUSE OF REPRESENTATIVES: The Committee of Conference, to which were referred the disagreeing votes of the two Houses upon Senate Bill, entitled: S. 156. AN ACT RELATING TO CORRECTIONS. Respectfully report that they have met and considered the same and recommend that their report of the Committee of Conference for S.156 be amended by striking out Sec. 25 in its entirety and inserting in lieu thereof a new Sec. 25 to read as follows: Sec. 25. 13 V.S.A. § 1028a is amended to read: § 1028a. ASSAULT OF CORRECTIONAL OFFICER; ASSAULT WITH BODILY FLUIDS *** (b) No person shall intentionally cause blood, vomitus, excrement, mucus, saliva, semen, or urine to come in contact with: (1) Any person lawfully present in a correctional facility unless the person’s presence within the facility requires the contact; or (2) An employee of a correctional facility acting in the scope of employment unless the employee’s scope of employment requires the contact. (c) A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both. SATURDAY, JUNE 4, 2005 1573 (d) A sentence imposed for a conviction of this section shall be served consecutively with and not concurrently with any other sentence. RICHARD W. SEARS, JR. JOHN F. CAMPBELL WENDY L. WILTON Committee on the part of the Senate MICHAEL R. KAINEN RICHARD J. MAREK JOHN S. RODGERS Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of and addendum to the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the Governor forthwith. Proposal of Amendment; Third Reading Ordered; Rules Suspended; Bill Passed in Concurrence with Proposals of Amendment; Rules Suspended; Bill Message H. 109. Senator Illuzzi, for the Committee on Economic Development, Housing and General Affairs, to which was referred House bill entitled: An act relating to reauthorization of the human resources investment council. Reported recommending that the Senate propose to the House to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 10 V.S.A. § 541 is added to read: § 541. HUMAN RESOURCES INVESTMENT COUNCIL; STATE WORKFORCE INVESTMENT BOARD; MEMBERS, TERMS (a) The human resources investment council is created as the successor to and the continuation of the governor’s human resources investment council and shall be the state workforce investment board under Public Law 105-220, the Workforce Investment Act of 1998 and any reauthorization of that act. The council shall consist of members as required under the federal act, including a representative of the Abenaki Self-Help Association, and the following: the president of the Vermont student assistance corporation; the president of the 1574 JOURNAL OF THE SENATE Association of Vermont Independent Colleges; the president of the University of Vermont; at least two representatives of labor appointed by the governor in addition to the two required under the federal act, at least one of whom shall be chosen from names submitted by labor organizations; one representative of the low income community appointed by the governor; two members of the senate appointed by the senate committee on committees; and two members of the house appointed by the speaker. In addition, the governor shall appoint enough other members who are representatives of business or employers so that one-half plus one of the members of the council are representatives of business or employers. At least one-third of those appointed by the governor as representatives of business or employers shall be chosen from a list submitted by the regional workforce investment boards. In this section, “representative of business” means a business owner, a chief executive operating officer, or other business executive, and “employer” means an individual with policy-making or hiring authority, including a public school superintendent or school board member and including representatives from the nonprofit, social services, and health sectors of the economy. If there is a dispute as to who is to represent an interest as required under the federal law, the governor shall decide who shall be the member of the council. (b) Members representing business, employers, labor, and the low income community shall be appointed for terms of three years. Appointed members, except legislative appointees, shall serve at the pleasure of the governor. (c) A vacancy shall be filled for the unexpired term in the same manner as the initial appointment. (d) The governor shall appoint one of the business or employer members to chair the council. (e) The commissioner of labor shall appoint four other members who, in addition to the chair, shall be the executive committee. (f) Members, other than legislative members, shall be entitled to compensation and expenses as provided in 32 V.S.A. § 1010. Legislative members shall be entitled to compensation and expenses as provided in 2 V.S.A. § 406. (g) The commissioner of labor shall appoint an executive director to the council, which shall be an exempt position and shall provide the council with administrative support. (h) The human resources investment council shall be subject to subchapters 2 and 3 of chapter 5 of Title 1, relating to public meetings and access to public records. (i) The human resources investment council shall: SATURDAY, JUNE 4, 2005 1575 (1) Meet at least three times per year. Members missing more than two consecutive meetings may be replaced. (2) Advise the governor on the establishment of an integrated network of workforce education and training for Vermont. (3) Coordinate planning and services for an integrated network of workforce education and training and oversee its implementation. (4) Establish and oversee workforce investment boards as provided in section 542 of this title. (5) boards. Establish performance goals for regional workforce investment (6) Establish goals for and coordinate the state’s workforce education and training policies. (7) Receive annual reports from the department of employment and training on the workforce education and training revenues and expenditures of agencies and institutions which are members of the council. (8) Annually review and comment on workforce education and training revenues and expenditures of member agencies and institutions. (9) Negotiate memoranda of understanding between the council and agencies and institutions involved in Vermont’s integrated network of workforce education and training in order to ensure that each is working to achieve annual objectives developed by the council. (10) Carry out the duties assigned to the state workforce investment board, as required for a single-service delivery state, under P.L. 105-220, the Workforce Investment Act of 1998, and any amendments that may be made to it. (11) Annually, on or before January 15, report to the general assembly on activities carried out during the previous year in order to accomplish its mandate. Sec. 2. STUDY; REPORT The human resources investment council shall study and recommend a legislative proposal to reorganize the workforce investment boards into geographic regions aligned with the flow of commerce in the state. The council shall report its recommendation to the house committee on commerce and the senate committee on economic development and general affairs on or before January 15, 2006. 1576 JOURNAL OF THE SENATE Sec. 3. 21 V.S.A. § 1306a is added to read: § 1306a. LABOR MANAGEMENT ADVISORY COUNCIL; MEMBERS; TERMS (a) The commissioner shall appoint a state labor advisory council composed of eight members to include four employer representatives and four employee representatives who may fairly be regarded as representative because of their vocations, employment, and affiliations. Appointment of the four employee representatives, at least one of whom shall have experience in workers’ compensation law, shall be made from qualified names submitted by the Vermont State Labor Council, the Vermont State Employees’ Association, and the Vermont National Education Association. Appointment of the four employer representatives shall be made from qualified names submitted by the Vermont Chamber of Commerce, Associated General Contractors of Vermont, and the Vermont Business Roundtable. (b) The council shall advise the commissioner in formulating policies by discussing problems relating to the administration of duties and functions assigned to the department in order to bring impartiality and freedom from political influences to the solution of these issues. (c) The commissioner may establish subcommittees composed solely of labor or management representatives and use a portion of the council’s meeting time to meet with these subcommittees. (d) The council shall meet at least six times per year. (e) Each member of the council who is not a salaried official or state employee or is not otherwise compensated through employment while attending council meetings is entitled to per diem compensation and reimbursement for expenses as provided in 32 V.S.A. § 1010. (f) The members of the council shall be appointed by the commissioner for staggered terms of four years. Of the first members appointments, one employer and one employee representative shall be for a one-year term, one employer and one employee representative for a two-year term, one employer and employee representative for a three-year term, and one employer and one employee representative for a four-year term. Any appointment to a vacancy shall be for the unexpired term. * * * Vocational Rehabilitation Rule * * * Sec. 4. 21 V.S.A. § 641(a) is amended to read: (a) When as a result of an injury covered by this chapter, an employee is unable to perform work for which the employee has previous training or experience, the employee shall be entitled to vocational rehabilitation services, SATURDAY, JUNE 4, 2005 1577 including retraining and job placement, as may be reasonably necessary to restore the employee to suitable employment. Vocational rehabilitation services shall be provided as follows: *** (3) The commissioner shall adopt rules to assure that a worker who requests services or who has received more than 90 days of continuous temporary total disability benefits is timely and cost-effectively screened for benefits under this section. The rules shall: (A) Provide that all vocational rehabilitation work, except for initial screenings, be performed by a Vermont-certified vocational rehabilitation counselor including counselors currently certified pursuant to the rules of the department. Initial screenings shall be performed by an individual with sufficient knowledge or experience to perform adequately the vocational rehabilitation screening functions. (B) Provide for an initial screening to determine whether a full assessment is appropriate. An injured worker who is determined to be eligible for benefits shall have an appropriate initial vocational a full assessment shall be timely assessed and be offered appropriate vocational rehabilitation services. (C) The commissioner shall adopt rules to provide Provide a mechanism for a periodic review and timely screening of injured workers who are initially found not to be ready or eligible for vocational rehabilitation services a full assessment to determine whether a full assessment has become appropriate. (D) Protect against potential conflicts of interest in the assignment and performance of initial screenings. (E) Assure the injured worker has a choice of a vocational rehabilitation counselor. *** (5) The commissioner may set by rule reasonable reimbursement rates for vocational rehabilitation benefits and services, provided access to vocational rehabilitation services is not diminished, and reasonable choices and access to benefits and services are maintained. The reimbursement shall reflect the current market hourly rate of vocational rehabilitation services as determined by a survey of vocational rehabilitation providers, including solo practitioners, small firms, and large firms. The fee schedule shall require the individual vocational rehabilitation counselor who provides services to review, initial, and certify the accuracy of the billing. 1578 JOURNAL OF THE SENATE (6) The commissioner shall make annual reports to the general assembly on the success and status of the workers’ compensation vocational rehabilitation program. * * * Discontinuance of Benefits * * * Sec. 5. 21 V.S.A. § 643a is amended to read: § 643a. DISCONTINUANCE OF BENEFITS Unless an injured worker has successfully returned to work, an employer shall notify both the commissioner and the employee prior to terminating benefits under either section 642 or section 646 of this title. The notice of intention to discontinue payments shall be filed on forms prescribed by the commissioner and shall include the date of the proposed discontinuance and the reasons for it. The liability for the payments shall continue for 7 seven days after the notice is received by the commissioner and the employee. Those payments shall be made without prejudice to the employer and may be deducted from any amounts due pursuant to section 648 of this title if the commissioner determines that the discontinuance is warranted or if otherwise ordered by the commissioner. Every notice shall be reviewed by the commissioner to determine the sufficiency of the basis for the proposed discontinuance. If, upon review, the commissioner finds that the evidence does not reasonably support the proposed discontinuance, the commissioner may shall order that payments continue until a hearing is held and a decision is rendered. If the commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the discontinuance and the final decision, upon request of the employer, the commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce such a repayment order in any court of law having jurisdiction of the amount involved. * * * Failure to Pay Benefits * * * Sec. 6. 21 V.S.A. § 650(e) is amended to read: (e) If weekly compensation benefits or weekly accrued benefits are not paid within 21 days after becoming due and payable pursuant to an order of the commissioner, or in cases in which the overdue benefit is not in dispute, ten percent of the overdue amount shall be added and paid to the employee, in addition to interest and any other penalties. In the case of an initial claim, benefits are due and payable upon entering into an agreement pursuant to subsection 662(a) of this title, upon issuance of an order of the commissioner pursuant to subsection 662(b) of this title, or if the employer has not denied the claim within 21 days after the claim is filed. Benefits are in dispute if the claimant has been provided actual written notice of the dispute within 21 days SATURDAY, JUNE 4, 2005 1579 of the benefit being due and payable and the evidence reasonably supports the denial. Interest shall accrue and be paid on benefits that are found to be compensable during the period of nonpayment. The commissioner shall promptly review requests for payment under this section and, consistent with the criteria in department rule 10.13, shall allow for the recovery of reasonable attorney fees associated with an employee’s successful request for payment under this subsection. * * * Interim Orders * * * Sec. 7. 21 V.S.A § 662(b) is amended to read: (b) In the absence of an agreement pursuant to subsection (a) of this section, the employer or insurance carrier shall notify the commissioner and the employee in writing that the claim is denied and the reasons therefor. Upon the employee’s application for a hearing under section 663 of this title, within 60 days, the commissioner may shall review the evidence upon which denial is based and if the evidence does not reasonably support the denial, the commissioner may shall order that payments be made until a hearing is held and a decision is rendered. Payments pursuant to this subsection shall not be deemed an admission of liability by the employer nor shall such payments preclude subsequent agreement under subsection (a) of this section or prejudice the rights of either party to hearing or appeal under this chapter. If the commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the initial denial and the final decision, upon request of the employer, the commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce such a repayment order in any court of law having jurisdiction of the amount involved. Nothing in this section shall require the commissioner to order payments pending a hearing if the commissioner concludes that the benefit at issue is not compensable regardless of the lack of evidence supporting the denial. For the purposes of this section, any written communication by an unrepresented claimant that questions the denial of any benefit shall be deemed to be an application for hearing under section 663 of this title. * * * Lump Sum Payment * * * Sec. 8. 21 V.S.A. § 652(c) is added to read: (c) Unless otherwise requested by the claimant, an order for a lump sum payment of permanent partial or permanent total disability benefits or a lump sum settlement of a disputed claim shall include a provision accounting for excludable expenses and prorating the remainder of the lump sum payment in 1580 JOURNAL OF THE SENATE the manner set forth by the Social Security Administration in order to protect the claimant’s entitlement to Social Security benefits. Sec. 9. REPEAL (a) 10 V.S.A. § 542 (workforce investment boards) shall be repealed on July 1, 2006. (b) 21 V.S.A. § 1306 (advisory council for the department of employment and training) is repealed as of the effective date of this act. And that the bill ought to pass in concurrence with such proposals of amendment. Thereupon, the bill was read the second time by title only pursuant to Rule 43, and pending the question, Shall the bill be amended as recommended by the Committee on Economic Development, Housing and General Affairs?, Senator Illuzzi requested and was granted leave to withdraw the proposal of amendment of the Committee on Economic Development, Housing and General Affairs. Thereupon, Senators Illuzzi, MacDonald and Dunne moved that the Senate propose to the House that the bill be amended as follows: Sec. 1. 10 V.S.A. § 541 is added to read: § 541. HUMAN RESOURCES INVESTMENT COUNCIL; STATE WORKFORCE INVESTMENT BOARD; MEMBERS, TERMS (a) The human resources investment council is created as the successor to and the continuation of the governor’s human resources investment council and shall be the state workforce investment board under Public Law 105-220, the Workforce Investment Act of 1998 and any reauthorization of that act. The council shall consist of members as required under the federal act, including a representative of the Abenaki Self-Help Association, and the following: the president of the Vermont student assistance corporation; the president of the Association of Vermont Independent Colleges; the president of the University of Vermont; the chancellor of the Vermont state colleges; at least two representatives of labor appointed by the governor in addition to the two required under the federal act, at least one of whom shall be chosen from names submitted by labor organizations; one representative of the low income community appointed by the governor; two members of the senate appointed by the senate committee on committees; and two members of the house appointed by the speaker. In addition, the governor shall appoint enough other members who are representatives of business or employers so that one-half plus one of the members of the council are representatives of business or employers. At least one-third of those appointed by the governor as representatives of business or employers shall be chosen from a list submitted by the regional workforce investment boards. In this section, “representative SATURDAY, JUNE 4, 2005 1581 of business” means a business owner, a chief executive operating officer, or other business executive, and “employer” means an individual with policy-making or hiring authority, including a public school superintendent or school board member and including representatives from the nonprofit, social services, and health sectors of the economy. If there is a dispute as to who is to represent an interest as required under the federal law, the governor shall decide who shall be the member of the council. (b) Members representing business, employers, labor, and the low income community shall be appointed for terms of three years. Appointed members, except legislative appointees, shall serve at the pleasure of the governor. (c) A vacancy shall be filled for the unexpired term in the same manner as the initial appointment. (d) The governor shall appoint one of the business or employer members to chair the council. (e) The human resources investment council shall appoint four other members who, in addition to the chair, shall be the executive committee. (f) Members, other than legislative members, shall be entitled to compensation and expenses as provided in 32 V.S.A. § 1010. Legislative members shall be entitled to compensation and expenses as provided in 2 V.S.A. § 406. (g) The commissioner of labor shall appoint an executive director to the council, which shall be an exempt position and shall provide the council with administrative support. (h) The human resources investment council shall be subject to subchapters 2 and 3 of chapter 5 of Title 1, relating to public meetings and access to public records. (i) The human resources investment council shall: (1) Meet at least three times per year. Members missing more than two consecutive meetings may be replaced. (2) Advise the governor on the establishment of an integrated network of workforce education and training for Vermont. (3) Coordinate planning and services for an integrated network of workforce education and training and oversee its implementation. (4) Establish and oversee workforce investment boards as provided in section 542 of this title. 1582 (5) boards. JOURNAL OF THE SENATE Establish performance goals for regional workforce investment (6) Establish goals for and coordinate the state’s workforce education and training policies. (7) Receive annual reports from the department of employment and training on the workforce education and training revenues and expenditures of agencies and institutions which are members of the council. (8) Annually review and comment on workforce education and training revenues and expenditures of member agencies and institutions. (9) Negotiate memoranda of understanding between the council and agencies and institutions involved in Vermont’s integrated network of workforce education and training in order to ensure that each is working to achieve annual objectives developed by the council. (10) Carry out the duties assigned to the state workforce investment board, as required for a single-service delivery state, under P.L. 105-220, the Workforce Investment Act of 1998, and any amendments that may be made to it. (11) Annually, on or before January 15, report to the general assembly on activities carried out during the previous year in order to accomplish its mandate. Sec. 2. STUDY; REPORT The human resources investment council shall study and recommend a legislative proposal to reorganize the workforce investment boards into geographic regions aligned with the flow of commerce in the state. The council shall report its recommendation to the house committee on commerce and the senate committee on economic development and general affairs on or before January 15, 2006. Sec. 3. 21 V.S.A. § 1306a is added to read: § 1306a. LABOR MANAGEMENT ADVISORY COUNCIL; MEMBERS; TERMS (a) The commissioner shall appoint a state labor advisory council composed of eight members to include four employer representatives and four employee representatives who may fairly be regarded as representative because of their vocations, employment, and affiliations. Appointment of the four employee representatives, at least one of whom shall have experience in workers’ compensation law, shall be made from qualified names submitted by the Vermont State Labor Council, the Vermont State Employees’ Association, SATURDAY, JUNE 4, 2005 1583 and the Vermont National Education Association. Appointment of the four employer representatives shall be made from qualified names submitted by the Vermont Chamber of Commerce, Associated General Contractors of Vermont, and the Vermont Business Roundtable. (b) The council shall advise the commissioner in formulating policies by discussing problems relating to the administration of duties and functions assigned to the department in order to bring impartiality and freedom from political influences to the solution of these issues. (c) The commissioner may establish subcommittees composed solely of labor or management representatives and use a portion of the council’s meeting time to meet with these subcommittees. (d) The council shall meet at least six times per year. (e) Each member of the council who is not a salaried official or state employee or is not otherwise compensated through employment while attending council meetings is entitled to per diem compensation and reimbursement for expenses as provided in 32 V.S.A. § 1010. (f) The members of the council shall be appointed by the commissioner for staggered terms of four years. Of the first members appointments, one employer and one employee representative shall be for a one-year term, one employer and one employee representative for a two-year term, one employer and employee representative for a three-year term, and one employer and one employee representative for a four-year term. Any appointment to a vacancy shall be for the unexpired term. * * * Vocational Rehabilitation Rule * * * Sec. 4. 21 V.S.A. § 641(a) is amended to read: (a) When as a result of an injury covered by this chapter, an employee is unable to perform work for which the employee has previous training or experience, the employee shall be entitled to vocational rehabilitation services, including retraining and job placement, as may be reasonably necessary to restore the employee to suitable employment. Vocational rehabilitation services shall be provided as follows: *** (3) The commissioner shall adopt rules to assure that a worker who requests services or who has received more than 90 days of continuous temporary total disability benefits is timely and cost-effectively screened for benefits under this section. The rules shall: 1584 JOURNAL OF THE SENATE (A) Provide that all vocational rehabilitation work, except for initial screenings, be performed by a Vermont-certified vocational rehabilitation counselor including counselors currently certified pursuant to the rules of the department. Initial screenings shall be performed by an individual with sufficient knowledge or experience to perform adequately the vocational rehabilitation screening functions. (B) Provide for an initial screening to determine whether a full assessment is appropriate. An injured worker who is determined to be eligible for benefits shall have an appropriate initial vocational a full assessment shall be timely assessed and be offered appropriate vocational rehabilitation services. (C) The commissioner shall adopt rules to provide Provide a mechanism for a periodic review and timely screening of injured workers who are initially found not to be ready or eligible for vocational rehabilitation services a full assessment to determine whether a full assessment has become appropriate. (D) Protect against potential conflicts of interest in the assignment and performance of initial screenings. (E) Assure the injured worker has a choice of a vocational rehabilitation counselor. *** (5) The commissioner may set by rule reasonable reimbursement rates for vocational rehabilitation benefits and services, provided access to vocational rehabilitation services is not diminished, and reasonable choices and access to benefits and services are maintained. The reimbursement shall reflect the current market hourly rate of vocational rehabilitation services as determined by a survey of vocational rehabilitation providers, including solo practitioners, small firms, and large firms. The fee schedule shall require the individual vocational rehabilitation counselor who provides services to review, initial, and certify the accuracy of the billing. (6) The commissioner shall make annual reports to the general assembly on the success and status of the workers’ compensation vocational rehabilitation program. SATURDAY, JUNE 4, 2005 1585 * * * Discontinuance of Benefits * * * Sec. 5. 21 V.S.A. § 643a is amended to read: § 643a. DISCONTINUANCE OF BENEFITS Unless an injured worker has successfully returned to work, an employer shall notify both the commissioner and the employee prior to terminating benefits under either section 642 or section 646 of this title. The notice of intention to discontinue payments shall be filed on forms prescribed by the commissioner and shall include the date of the proposed discontinuance and the reasons for it. The liability for the payments shall continue for 7 seven days after the notice is received by the commissioner and the employee. Those payments shall be made without prejudice to the employer and may be deducted from any amounts due pursuant to section 648 of this title if the commissioner determines that the discontinuance is warranted or if otherwise ordered by the commissioner. Every notice shall be reviewed by the commissioner to determine the sufficiency of the basis for the proposed discontinuance. If, upon review, the commissioner finds that the evidence does not reasonably support the proposed discontinuance, the commissioner may shall order that payments continue until a hearing is held and a decision is rendered. If the commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the discontinuance and the final decision, upon request of the employer, the commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce such a repayment order in any court of law having jurisdiction of the amount involved. * * * Failure to Pay Benefits * * * Sec. 6. 21 V.S.A. § 650(e) is amended to read: (e) If weekly compensation benefits or weekly accrued benefits are not paid within 21 days after becoming due and payable pursuant to an order of the commissioner, or in cases in which the overdue benefit is not in dispute, ten percent of the overdue amount shall be added and paid to the employee, in addition to interest and any other penalties. In the case of an initial claim, benefits are due and payable upon entering into an agreement pursuant to subsection 662(a) of this title, upon issuance of an order of the commissioner pursuant to subsection 662(b) of this title, or if the employer has not denied the claim within 21 days after the claim is filed. Benefits are in dispute if the claimant has been provided actual written notice of the dispute within 21 days of the benefit being due and payable and the evidence reasonably supports the denial. Interest shall accrue and be paid on benefits that are found to be compensable during the period of nonpayment. The commissioner shall 1586 JOURNAL OF THE SENATE promptly review requests for payment under this section and, consistent with the criteria in department rule 10.13, shall allow for the recovery of reasonable attorney fees associated with an employee’s successful request for payment under this subsection. * * * Interim Orders * * * Sec. 7. 21 V.S.A § 662(b) is amended to read: (b) In the absence of an agreement pursuant to subsection (a) of this section, the employer or insurance carrier shall notify the commissioner and the employee in writing that the claim is denied and the reasons therefor. Upon the employee’s application for a hearing under section 663 of this title, within 60 days, the commissioner may shall review the evidence upon which denial is based and if the evidence does not reasonably support the denial, the commissioner may shall order that payments be made until a hearing is held and a decision is rendered. Payments pursuant to this subsection shall not be deemed an admission of liability by the employer nor shall such payments preclude subsequent agreement under subsection (a) of this section or prejudice the rights of either party to hearing or appeal under this chapter. If the commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the initial denial and the final decision, upon request of the employer, the commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce such a repayment order in any court of law having jurisdiction of the amount involved. Nothing in this section shall require the commissioner to order payments pending a hearing if the commissioner concludes that the benefit at issue is not compensable regardless of the lack of evidence supporting the denial. For the purposes of this section, any written communication by an unrepresented claimant that questions the denial of any benefit shall be deemed to be an application for hearing under section 663 of this title. * * * Lump Sum Payment * * * Sec. 8. 21 V.S.A. § 652(c) is added to read: (c) Unless otherwise requested by the claimant, an order for a lump sum payment of permanent partial or permanent total disability benefits or a lump sum settlement of a disputed claim shall include a provision accounting for excludable expenses and prorating the remainder of the lump sum payment in the manner set forth by the Social Security Administration in order to protect the claimant’s entitlement to Social Security benefits. SATURDAY, JUNE 4, 2005 1587 Sec. 9. REPEAL (a) 10 V.S.A. § 542 (workforce investment boards) shall be repealed on July 1, 2008. (b) 21 V.S.A. § 1306 (advisory council for the department of employment and training) is repealed as of the effective date of this act. Thereupon, pending the question, Shall the Senate propose to the House to amend the bill as moved by Senators Illuzzi, MacDonald, Dunne?, Senator Mullin raised a point of order as to Secs. 3-8 of the proposal of amendment on Senate Rule 90, in that the same provisions had been acted on by the Senate previously, and therefore they should not again be considered by the Senate. The President overruled the point of order based on precedent of the Senate, stating that the question presented is not the same question as previously acted upon by the Senate. Senator Mullin then raised a point of order on Secs. 3-8, on the ground of lack of germaneness. This point of order was sustained by President, in that the sections in question were not sufficiently related to the underlying bill and therefore could not to be considered by Senate. Thereupon, Senator Campbell moved to suspend the rules to allow consideration of a non-germane proposal of amendment, which was agreed to on a roll call Yeas 19, Nays 4, (the required 3/4 vote having been attained). Senator Mullin having demanded the yeas and nays, they were taken and are as follows: Roll Call Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Collins, Condos, Cummings, Doyle, Dunne, Flanagan, Giard, Illuzzi, Kitchel, Kittell, Leddy, Lyons, Miller, Sears, Welch, White. Those Senators who voted in the negative were: Maynard, Mazza, Mullin, Wilton. Those Senators absent and not voting were: Coppenrath, Gander, MacDonald, Scott, Shepard, Snelling, Starr. Thereupon, the pending question, Shall the Senate propose to the House that the bill be amended as moved by Senators Illuzzi, MacDonald and Dunne?, was decided in the affirmative. Thereupon, pending the question, Shall bill be read the third time?, Senators Miller, Illuzzi and Starr, moved that the Senate propose to the House to amend 1588 JOURNAL OF THE SENATE the bill by adding two new sections, to be numbered Secs. 9 and 10 to read as follows: * * * Wood Products Manufacturing * * * Sec. 9. WOOD PRODUCTS MANUFACTURING TAX CREDITS; FINDINGS The general assembly finds that the economic vitality within certain adjacent counties in the state with the highest unemployment rates is dependent on a limited number of employers that manufacture finished wood products. In order to support the sustainability and vitality of the finished wood products industry, the general assembly further finds that income tax credits will provide financial assistance needed to maintain the economic well-being of the communities that rely so heavily on this industry for the health of their economies. Sec. 10. 32 V.S.A. § 5930y is added to read: § 5930y. WOOD PRODUCTS MANUFACTURER CREDIT (a) Annually on or before February 1, the secretary of commerce and community development shall designate any two adjacent counties having at least five percent of their jobs provided by employers that manufacture finished wood products and having the highest unemployment rate in the state for at least one month in the previous calendar year. Upon making a designation, the secretary shall send a written notice to the commissioner of taxes identifying the designated counties. (b) A credit against the income tax liability is available as follows: (1) There shall be a credit of two percent of the wages paid in the taxable year by an employer for services performed in a designated county or an adjacent county associated with the manufacture of finished wood products. The credit shall be available to the employer in any year the county qualifies and for one year after a qualification ends. (2) The credit, either alone or in combination with any other credit allowed by this chapter, shall not reduce the income tax liability of the employer by more than 80 percent. (3) The recapture of development incentives established in subchapter 6 of chapter 47 of Title 3 shall apply to the tax credits in this section, except that the provisions of subsection 2512(c) of that title shall not apply to business relocation outside the designated counties. And by renumbering the remaining section to be numerically correct. Which was agreed to. SATURDAY, JUNE 4, 2005 1589 Thereupon, pending the question, Shall the bill be read the third time?, Senator Sears moved to amend the bill by inserting a new section to be numbered Sec. 11, to read as follows: Sec. 11. 21 V.S.A. §384(a), as amended by Sec. 1 of S. 80 of the 2005 session, is further amended to read: (a) An employer shall not employ an employee at a rate less than $7.00 an hour and, beginning January 1, 2006, at a rate less than $7.25, and, beginning January 1, 2007, and on each subsequent January 1, the minimum wage rate shall be increased by the lesser of five percent or the average of: the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous September 1, whichever is smaller. The minimum wage shall be rounded off to the nearest $0.01. An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee at a basic wage rate less than $3.65 an hour and beginning January 1, 2006, and every January 1 thereafter that rate shall be increased by the same percentage as the minimum wage under this section. For the purposes of this subsection, “a service or tipped employee” means an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $30.00 per month in tips for direct and personal customer service. If the minimum wage rate established by the United States government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the United States government. And that the last section be renumbered to be numerically correct. Thereupon, pending the question, Shall the Senate propose to the House to amend the bill as moved by Senator Sears?, Senator Maynard raised a point of order under Sec. 402 of Mason’s Manual of Legislative Procedure on the ground that the proposal of amendment offered by Senator Sears was not germane to the bill and therefore could not be considered by the Senate. Thereupon, the President sustained the point of order and ruled that the proposal of amendment offered by Senator Sears was not germane to the bill since it presented a question that expanded the subject matter of the bill and introduced a different topic. Thereupon, Senator Campbell moved to suspend the rules to allow consideration of a non-germane proposal of amendment, which was agreed to on a roll call Yeas 19, Nays 4 (the necessary three-fourths vote having been attained). 1590 JOURNAL OF THE SENATE Senator Mullin having demanded the yeas and nays, they were taken and are as follows: Roll Call Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Collins, Condos, Cummings, Doyle, Dunne, Flanagan, Giard, Illuzzi, Kitchel, Kittell, Leddy, Lyons, Miller, Sears, Welch, White. Those Senators who voted in the negative were: Maynard, Mazza, Mullin, Wilton. Those Senators absent and not voting were: Coppenrath, Gander, MacDonald, Scott, Shepard, Snelling, Starr. Thereupon, the recurring question, Shall the Senate propose to the House that the bill be amended as moved by the Senator Sears?, was agreed to on a roll call, Yeas 19, Nays 4. Senator Mullin having demanded the yeas and nays, they were taken and are as follows: Roll Call Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Collins, Condos, Cummings, Doyle, Dunne, Flanagan, Giard, Illuzzi, Kitchel, Kittell, Leddy, Lyons, Miller, Sears, Welch, White. Those Senators who voted in the negative were: Maynard, Mazza, Mullin, Wilton. Those Senators absent and not voting were: Coppenrath, Gander, MacDonald, Scott, Shepard, Snelling, Starr. Thereupon, pending the question, Shall the bill be read the third time?, Senators Campbell, Ayer, Condos, Cummings, Flanagan, Gander, Giard, Illuzzi, Kittell, Leddy, Lyons, Miller, Sears, Welch and White moved that the Senate propose to the House that the bill be amended as follows: First: In Sec. 1, 10 V.S.A. § 541(a), in the second sentence, after the following: “Self-Help Association and the following:” by inserting the following: two members of the study committee on international trade and state sovereignty established by 3 V.S.A. § 23; and in subsection (i) of that section, by adding a new subdivision (11) to read as follows: (11) Collaborate with the study committee on international trade and state sovereignty with respect to the effects of international agreements on the state’s work force, and make recommendations on those matters to the SATURDAY, JUNE 4, 2005 1591 governor and the general assembly to assist in determinations as to whether the state should consent to participate in various international treaties negotiated by the United States Government; And by renumbering the remaining subdivision to be numerically correct Second: By adding a new section to be numbered Sec. 12 to read as follows: Sec. 12. 3 V.S.A. §§ 23 is added to read: § 23. STATE ENTRY INTO OBLIGATIONS UNDER TREATY OR TRADE AGREEMENT; STUDY COMMITTEE ON INTERNATIONAL TRADE AND STATE SOVEREIGNTY (a) Definitions. For the purposes of this section: (1) “International Trade Agreement” means a trade agreement between the federal government and a foreign country to which the state, at the request of the federal government, is or may be a party. (2) “International Trade Agreement” does not include a trade agreement between the state and a foreign country to which the federal government is not a party. (b) Limitations. Except as provided in subsection (c) of this section, no state official, including the governor, may: (1) Bind the state to an international trade agreement; or (2) Give consent to the federal government to bind the state to an international trade agreement. (c) State policy in general. It is the policy of the State of Vermont to decline to participate in an international trade agreement until the overall effects of that participation are fully and adequately considered, and are determined to be beneficial to the state. The governor may bind the state or give consent to the federal government to bind the state to an international trade agreement only after receiving the formal recommendations of the study committee on international trade and state sovereignty with respect to that specific agreement, and only in situations in which the general assembly, after receiving those recommendations gives its assent by joint resolution or act of legislation or fails to enact an act or joint resolution to prohibit the governor from making that specific commitment. (d) State policy on specific trade agreements. (1) The State of Vermont declines to participate in the CAFTA agreement, and formally withdraws the Governor’s consent, as expressed in a letter dated October 30, 2003 to Trade Representative Robert B. Zoellick, to 1592 JOURNAL OF THE SENATE the state’s participation in trade agreements with Morocco, Australia, the countries of the Central American Common Market and the South African Customs Union.. § 24. (e) There is created a study committee on international trade and state sovereignty, to consist of the following: two members of the Senate, appointed by the Committee on Committees; two members of the House, appointed by the Speaker; the designated state point of contact; the attorney general or a designee; one representative of the state’s municipalities, appointed by the governor; four members of the public appointed by the governor as follows: a small business person, a small farmer, a representative of a nonprofit organization that promotes fair trade policies, and a representative of a Vermont based corporation that is active in international trade; three members of the public appointed by the Speaker of the House as follows: a health care professional, a person active in the organized labor community, and a member of a non-profit environmental organization; three members of the public appointed by the President Pro Tem of the Senate: one member of a nonprofit human rights organization, one representative of a Vermont based manufacturing business with 25 or more employees, and a representative of an economic development organization. (f) The committee shall assess and monitor the legal and economic impacts of trade agreements on state and local laws, state sovereignty, working conditions and the business environment. It shall provide a mechanism for citizens and legislators to voice their concerns and recommendations and make policy recommendations to the general assembly and to the trade representatives of the United States government, which shall be designed to protect Vermont’s job, business environment and state sovereignty from any negative impact of trade agreements. It may recommend legislation or preferred practices and shall work with interested groups in other states to develop means to resolve the conflicting goals and tension inherent in the relationship between international trade and state sovereignty. (g) In response to a request from the governor or the general assembly, or on its own initiative the committee shall consider and develop formal recommendations with respect to how the state should best respond to challenges and opportunities posed by a particular international agreement. Formal recommendations on a specific international agreement shall be submitted to the governor and to the house and senate committees on judiciary, on government operations, and on natural resources and energy, and to the house committee on commerce and the senate committees on finance and on economic development, housing and general affairs. SATURDAY, JUNE 4, 2005 1593 (h) The committee shall be entitled to staff services of the agency of commerce, the attorney general, the legislative council, the joint fiscal committee. And by renumbering the remaining section to be numerically correct. Which was agreed to. Thereupon, the recurring question, Shall the bill be read the third time?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was placed on all remaining stages of its passage in concurrence with proposals of amendment forthwith. Thereupon, the bill was read the third time and passed in concurrence with proposals of amendment. Thereupon, on motion of Senator Welch, the rules were suspended, and the bill was ordered messaged to the House forthwith. Consideration Resumed; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Rules Suspended; Bill Messaged S. 80. Consideration was resumed on Senate bill entitled: An act relating to increasing the minimum wage. Thereupon, the pending question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the Governor forthwith. Message from the House No. 90 A message was received from the House of Representatives by Mr. MaGill, its First Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate the House has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses on House bills of the following titles: H. 516. An act making appropriations for the support of government. H. 521. An act relating to miscellaneous tax amendments. 1594 H. 540. program. JOURNAL OF THE SENATE An act relating to the agricultural and forest land use value And has adopted the same on its part. The House has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses on Senate bill of the following title: S. 16. An act relating to campaign finance. And has adopted the same on its part. Rules Suspended; Report of Committee of Conference Accepted and Adopted on the Part of the Senate; Rules Suspended; Bill Messaged S. 16. Pending entry on the Calendar for notice, on motion of Senator Welch, the rules were suspended and the report of the Committee of Conference on Senate bill entitled: An act relating to campaign finance. Was taken up for immediate consideration. Senator Condos, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate bill entitled: S. 16. An act relating to campaign finance. Respectfully reports that it has met and considered the same and recommends that the Senate accede to the House proposal of amendment. JAMES C. CONDOS JEANETTE K. WHITE WILLIAM T. DOYLE Committee on the part of the Senate LYNN BOHI DAVID CLARK JIM HUTCHINSON Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative. SATURDAY, JUNE 4, 2005 1595 Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the Governor forthwith. Message from the House No. 91 A message was received from the House of Representatives by Mr. MaGill, its First Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate the House has considered Senate proposals of amendment to House bill of the following title: H. 352. compact. An act relating to the interstate insurance product regulation H. 403. An act relating to basic needs budget calculations to determine livable wages. H. 532. An act relating to solid waste facility fees, taxes and certification. H. 533. An act relating to compensation for certain state employees. And has severally concurred therein. The House has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses on House bill of the following title: H. 156. An act relating to conservation motor vehicle registration plates. H. 524. An act relating to universal access to health care in Vermont And has adopted the same on its part. The House has considered a Joint Resolution originating in the Senate of the following title: J.R.S. 41. Joint resolution relating to final adjournment of the General Assembly in 2005. And has adopted the same in concurrence. The House has adopted Concurrent resolutions of the following titles: H.C.R. 175. House concurrent resolution congratulating the 2005 Black River Union High School girls’ championship snowboarding team. H.C.R. 176. House concurrent resolution honoring Brock Alan Tucker of South Burlington on becoming an Eagle Scout. H.C.R. 177. House concurrent resolution honoring Harvey Sharrow of Charlotte. 1596 JOURNAL OF THE SENATE H.C.R. 178. House concurrent resolution the Crossett Brook Middle School Odyssey of the Mind team on its outstanding Vermont and world competition performances. H.C.R. 179. House concurrent resolution congratulating Linda Conrad on her retirement from Dan and Whit’s General Store in Norwich. H.C.R. 180. House concurrent resolution congratulating Gail B. Conley on his outstanding career in public education. H.C.R. 181. House concurrent resolution honoring Robert F. Stevens for his outstanding career in public education. H.C.R. 182. House concurrent resolution in memory of former Representative Robert D. Yoder of Springfield. In the adoption of which the concurrence of the Senate is requested. The House has considered concurrent resolutions originating in the Senate of the following titles: S.C.R. 42. Senate concurrent resolution honoring Deputy Attorney General J. Wallace Malley for his exemplary public service on behalf of the state of Vermont. And has adopted the same in concurrence. Senate Concurrent Resolution The following joint concurrent resolution, having been placed on the consent calendar on the preceding legislative day, and no Senator having requested floor consideration as provided by the Joint Rules of the Senate and House of Representatives, is hereby adopted on the part of the Senate: By Senators Cummings, Doyle and Scott, By Representative Brooks and others, S.C.R. 42. Senate concurrent resolution honoring Deputy Attorney General J. Wallace Malley for his exemplary public service on behalf of the state of Vermont. [The full text of the Senate concurrent resolution appeared in the Senate calendar addendum for Friday, June 3, 2005, and, if adopted in concurrence by the House, will appear in the volume of the Public Acts and Resolves to be published for this session of the sixty-eighth biennial session of the Vermont General Assembly.] SATURDAY, JUNE 4, 2005 1597 House Concurrent Resolutions The following joint concurrent resolutions having been placed on the consent calendar on the preceding legislative day, and no Senator having requested floor consideration as provided by the Joint Rules of the Senate and House of Representatives, are hereby adopted in concurrence: By Representative Nitka, H.C.R. 175. House concurrent resolution congratulating the 2005 Black River Union High School girls’ championship snowboarding team. By Representative Pugh and others, H.C.R. 176. House concurrent resolution honoring Brock Alan Tucker of South Burlington on becoming an Eagle Scout. By Representative Orr, H.C.R. 177. House concurrent resolution honoring Harvey Sharrow of Charlotte. By Representative Minter and others, H.C.R. 178. House concurrent resolution congratulating the Crossett Brook Middle School Odyssey of the Mind team on its outstanding Vermont and world competition performances. By Representative Seibert and others, H.C.R. 179. House concurrent resolution congratulating Linda Conrad on her retirement from Dan and Whit’s General Store in Norwich. By Representative Barnard and others, H.C.R. 180. House concurrent resolution congratulating Gail B. Conley on his outstanding career in public education. By Representative Barnard and others, 1598 JOURNAL OF THE SENATE H.C.R. 181. House concurrent resolution honoring Robert F. Stevens for his outstanding career in public education. By Representative Emmons and others, H.C.R. 182. House concurrent resolution in memory of former Representative Robert D. Yoder of Springfield. [The full text of the House concurrent resolutions appeared in the Senate calendar addendum for Friday, June 3, 2005, and will appear in the volume of the Public Acts and Resolves to be published for this session of the sixtyeighth biennial session of the Vermont General Assembly.] Joint Resolution Adopted on the Part of the Senate Joint Senate resolution of the following title was offered, read and adopted on the part of the Senate, and is as follows: By Senator Welch, J.R.S. 41. Joint resolution relating to final adjournment of the General Assembly in 2005. Resolved by the Senate and House of Representatives That when the President of the Senate and the Speaker of the House of Representatives adjourn their respective houses on the fourth day of June, 2005, they shall do so to reconvene no later than the third day of January, 2006. Secretary Directed to Inform the House of Completion of Business On motion of Senator Campbell, the Secretary was directed to inform the House that the Senate has completed the business of the session and is ready to adjourn to a day certain, January 3, 2006, pursuant to the provisions of J.R.S. 41. Committee Appointed to Inform Governor of Completion of Business On motion of Senator Campbell, the President appointed the following five (5) Senators as members of a committee to wait upon His Excellency, James H. Douglas, the Governor, and inform him that the Senate has completed the business of the session and is ready to adjourn to a day certain, January 3, 2006, pursuant to the provisions of J.R.S. 41: SATURDAY, JUNE 4, 2005 1599 Senator Welch Senator Doyle Senator Kittell Senator Campbell Senator Mullin Report of Committee The Committee appointed to wait upon His Excellency, the Governor, to inform him that the Senate had, on its part, completed the business of the session and was ready to adjourn to a day certain, January 3, 2006, pursuant to the provisions of J.R.S. 41, performed the duties assigned to it and escorted the Governor to the rostrum where he delivered his remarks in person. Remarks of Governor The Governor, the Honorable James H. Douglas, assumed the rostrum and briefly addressed the Senate. Departure of Governor The Governor, having completed the delivery of his message, was escorted from the Chamber by the committee appointed by the Chair. Final Adjournment On motion of Senator Campbell, at five o'clock and forty minutes in the afternoon, (5:40 P.M.), the Senate adjourned to a day certain, January 3, 2006, at ten o'clock in the forenoon, pursuant to the provisions of J.R.S. 41.