Journal of the House ______THURSDAY, MAY 20, 2004 At nine o'clock and thirty minutes in the forenoon the Speaker called the House to order. Devotional Exercises Devotional exercises were conducted by Speaker Walter Freed of Dorset. Message from the Senate No. 71 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses upon House bill of the following title: H. 764. An act relating to the state’s transportation capital program and project development plan. And has accepted and adopted the same on its part. Pursuant to the request of the House for a Committee of Conference on the disagreeing votes of the two Houses on House bill entitled: H. 201. An act relating to a farm viability program. The President announced the appointment as members of such Committee on the part of the Senate: Senator White Senator Ayer Senator Maynard Joint Concurrent Resolution Adopted H.C.R. 331 House concurrent resolution congratulating the 2004 Middlebury College Panthers NCAA Division III championship women’s lacrosse team Offered by: Representatives Perry of Richford, Maier of Middlebury and Nuovo of Middlebury 7 JOURNAL OF THE HOUSE 8 Offered by: Senators Ayer and Gossens Whereas, the Middlebury Panthers women’s lacrosse team, the NCAA Division III champions in 1997, 1999, 2001, and 2002, approached the 2004 season eager to demonstrate its continuing command of this most indigenously North American of competitive sports, and Whereas, the Panthers’ exemplary offensive and defensive performances on the lacrosse field throughout the 2004 season earned the team a place in the NCAA Division III championship game against The College of New Jersey (TCNJ), and Whereas, the Panthers were required to battle into overtime to defeat this most worthy opponent and capture the national title, and Whereas, the game proved to be a challenging match for Middlebury as the Panthers overcame an initial TCNJ 2-1 lead when Nuala O’Donohoe tied the score at 2-all, and Whereas, although the Panthers trailed 7-6 at the half, their multiple goals throughout the second period placed them ahead 11-10 when TCNJ scored a goal with merely a minute left in regulation play, and Whereas, once in overtime, Middlebury players Michele Bergofsky and Channing Weymouth scored two decisive goals, enabling the Panthers to claim the 2004 NCAA Division III women’s lacrosse title, and Whereas, Panthers Johanna Rosenfield, Schuyler Winstead, Kim Walker, Nuala O’Donohoe, Caitlin McCormick, Lindsey Corbin, Kate Perry, Liza Humes, Michele Bergofsky, Alison Perencevich, Sydney Atkins, Natalie Shettle, Becca Brakeley, Beth Seeley, Elizabeth Renehan, Emily Erickson, Channing Weymouth, Claire Edelen, and Sarah Grenert played superbly throughout 2004, and Whereas, Head Coach Missy Foote and assistant coaches Katharine DeLorenzo, Missy Hopkins, and Char Glessner demonstrated their leadership expertise as the Panthers compiled a 19-0 perfect season, setting a new school record, now therefore be it Resolved by the Senate and House of Representatives: That the General Assembly congratulates the 2004 Middlebury College Panthers NCAA Division III championship women’s lacrosse team, and be it further Resolved: That the Secretary of State be directed to send a copy of this resolution to Missy Foote at Middlebury College. 9 THURSDAY, MAY 20, 2004 Was taken up read and adopted on the part of the House. Message from the Senate No. 72 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses upon House bills of the following titles: H. 327. An act relating to identity theft. H. 772. An act relating to executive fees. And has accepted and adopted the same on its part. Consideration Interrupted by Recess; Committee Not Relieved of Bill S. 288 Rep. Nease of Johnson moved that the committee on Appropriations be relieved of Senate bill entitled An act relating to state programs and policies on prescription drugs; Pending the question, Shall the committee on Appropriations be relieved of the bill? Rep. Nease of Johnson demanded the Yeas and Nays, which demand was sustained by the Constitutional number. Pending the call of the roll, Recess At nine o’clock and forty-eight minutes in the forenoon, the Speaker declared a recess until the fall of the gavel. At eleven o’clock and fifteen minutes in the forenoon, the Speaker called the House to order. The Clerk proceeded to call the roll and the question, Shall the committee on Appropriations be relieved of the bill? was decided in the negative. Yeas, 58. Nays, 79. Those who voted in the affirmative are: Aswad of Burlington Brooks of Montpelier Deen of Westminster Atkins of Winooski Chen of Mendon Donahue of Northfield Audette of South Burlington Connell of Warren Dostis of Waterbury Bohi of Hartford Cross of Winooski Edwards of Brattleboro Botzow of Pownal Darrow of Dummerston Emmons of Springfield

JOURNAL OF THE HOUSE 10 Fallar of Tinmouth Lippert of Hinesburg Pugh of South Burlington Fisher of Lincoln Maier of Middlebury Reese of Pomfret French of Randolph Marek of Newfane Seibert of Norwich Head of South Burlington Martin of Springfield Shand of Weathersfield Hingtgen of Burlington Masland of Thetford Sharpe of Bristol Howrigan of Fairfield McCullough of Williston Shouldice of Calais Hummel of Underhill McLaughlin of Royalton Smith of Morristown Jewett of Ripton Milkey of Brattleboro Starr of Troy Johnson of South Hero Miller of Shaftsbury Sweaney of Windsor Keenan of St. Albans City Nease of Johnson Symington of Jericho Kenyon of Bradford Nitka of Ludlow Tracy of Burlington Kiss of Burlington Nuovo of Middlebury Vincent of Waterbury Kitzmiller of Montpelier Obuchowski of Rockingham Zuckerman of Burlington Klein of East Montpelier Partridge of Windham Larson of Burlington Peterson of Williston Those who voted in the negative are: Adams of Hartland Heath of Westford Parent of St. Albans City Amidon of Charlotte Houston of Ferrisburgh Peaslee of Guildhall Anderson of Woodstock Hube of Londonderry Perry of Richford Bailey of Hyde Park Hudson of Lyndon Pillsbury of Brattleboro Baker of West Rutland Kennedy of Chelsea Robinson of Richmond Bartlett of Dover Keogh of Burlington Rodgers of Glover Bolduc of Barton Ketchum of Bethel Rogers of Castleton Bostic of St. Johnsbury Kilmartin of Newport City Rusten of Halifax Branagan of Georgia Kirker of Essex Schiavone of Shelburne Brown of Walden Koch of Barre Town Severance of Colchester Carey of Chester Krawczyk, A. of Bennington Shaw of Derby Clark of St. Johnsbury Krawczyk, J. of Bennington Sheltra of Derby Clark of Vergennes Larocque of Barnet Smith of New Haven Corcoran of Bennington Larrabee of Danville Sunderland of Rutland Town Crawford of Burke LaVoie of Swanton Sweeney of Colchester Crowley of West Rutland Livingston of Manchester Sweetser of Essex Dakin of Colchester Marron of Stowe Towne of Berlin DePoy of Rutland City Mazur of South Burlington Valliere of Barre City Donaghy of Poultney McAllister of Highgate Webster of Randolph Duffy of Rutland City Metzger of Milton Westman of Cambridge Dunsmore of Georgia Miller of Elmore Winters of Swanton Endres of Milton Molloy of Arlington Winters of Williamstown Errecart of Shelburne Monti of Barre City Wood of Brandon Flory of Pittsford Morrissey of Bennington Wright of Burlington Gray of Barre Town Myers of Essex Young of Orwell Haas of Rutland City O'Donnell of Vernon Hall of Newport City Otterman of Topsham Those members absent with leave of the House and not voting are: Allaire of Rutland City Donovan of Burlington Helm of Castleton Allard of St. Albans Town Gervais of Enosburg Hunt of Essex Brennan of Colchester Grad of Moretown Johnson of Canaan 11 THURSDAY, MAY 20, 2004 Kainen of Hartford Trombley of Grand Isle Waite of Pawlet

Rep. Dakin of Colchester explained her vote as follows: “Mr. Speaker: Last week I voted yes to get this bill out of committee. Today I voted “no”. Last week was the eleventh hour; today, the day of adjournment, is just too late. I will settle today for what’s included in the budget bill on this subject.” Rep. Head of South Burlington explained her vote as follows: “Mr. Speaker: The high cost of prescription drugs is a huge issue for my constituents and thousands of other Vermonters. This issue deserves our full consideration and debate.” Rep. Klein of East Montpelier explained his vote as follows: “Mr. Speaker: I voted yes because the cost of prescription drugs continues to push many Vermonters to the brink of economic and health disaster. To vote no because of process and that it would slow adjournment is incomprehensible when so many are suffering. Why have we done so very little on something so important? A small step is not good enough. Vermonters need help – we need substance not symbolism.” Rep. McCullough of Williston explained his vote as follows: “Mr. Speaker: I voted to relieve Appropriations of S. 288 in order to protect the Vermont population’s baby’s - elder’s right for this body to discuss the possibility of better quality, affordable, and accessible health care that this bill is a quality step toward.” Senate Proposal of Amendment Concurred in with a Further Amendment Thereto S. 42 Senate bill, entitled An act relating to creating an office of land recycling, and otherwise revising the brownfields reclamation program; The Senate concurs with the House proposal of amendment with a further amendment thereto by striking out Secs. 6-12 and inserting in lieu thereof the following:

JOURNAL OF THE HOUSE 12 Sec. 6. 10 V.S.A. chapter 14A is added to read: CHAPTER 14A. THE VERMONT SEED CAPITAL FUND § 291. VERMONT SEED CAPITAL FUND; AUTHORIZATION; LIMITATIONS (a) The formation of a private investment fund to be named “the Vermont seed capital fund” or “the fund” is authorized for the purpose of increasing the amount of investment capital provided to new Vermont firms or to existing Vermont firms for the purpose of expansion. (b) The Vermont seed capital fund shall be formed as either a business corporation or a limited partnership pursuant to Title 11 and shall be subject to all the following: (1) The Vermont seed capital fund shall not invest in any firm in which a total of more than a 25 percent interest in that firm is held by an investor of the Vermont seed capital fund combined with any interest held in the firm by the spouse or dependent children of the investor. (2) Before the fund makes any investments, the fund shall: (A) If organized as a corporation, have and thereafter maintain a board of nine directors, seven of whom shall be elected by the shareholders and two of whom shall be appointed by the governor with the advice and consent of the senate and shall represent the public interest of the state. (B) If organized as a partnership, have and maintain a board of three advisors appointed by the governor with the advice and consent of the senate. The board of advisors shall represent solely the public interest of the state with respect to the management of the fund and shall have no civil liability for the financial performance of the fund. The board of advisors shall be advised of investments made by the fund and shall have access to all information held by the fund with respect to investments made by the fund. (3) The Vermont seed capital fund, within 120 days after the close of each fiscal year of its operations, shall issue a report that includes an audited financial statement certified by an independent certified public accountant. This report shall be distributed to the governor and the legislative council and made available to the public. The report shall include a discussion of the fund’s impact on the Vermont economy and employment. (4) The Vermont seed capital fund shall not make distributions of more than 75 percent of its net profit to its investors during its first five years of operation. 13 THURSDAY, MAY 20, 2004 (5) No person shall be allocated more than 10 percent of the available tax credits. For the purposes of determining allocation, the attribution rules of Section 318 of the Internal Revenue Code in effect as of the effective date of this chapter shall apply. (6) The first $2 million of capitalization of the Vermont seed capital fund raised from Vermont taxpayers on or before January 1, 2014, shall be eligible for partial tax credits as specified in 32 V.S.A. § 5830b. (7) All investments and related business dealings using funds that qualify for partial tax credits under 32 V.S.A. § 5830b shall be subject to the following restrictions: (A) The investments shall be restricted to Vermont firms, which for the purposes of this chapter means that their Vermont apportionment under 32 V.S.A. § 5833 equals or exceeds 50 percent , using the apportionment rules under 32 V.S.A. § 5833 . Any funds invested in Vermont firms shall be used for the purpose of enhancing their Vermont investments. Investment shall be restricted to firms that export the majority of their products and services outside the state or add substantial value to products and materials within the state. In its investments, the fund shall give priority to new firms and existing firms that are developing new products. (B) Each Vermont seed capital fund investment in any one firm, in any 12-month period, shall be limited to a maximum of ten percent of the Vermont seed capital fund’s capitalization. (C) At least two-thirds of the monies invested by the Vermont seed capital fund and qualifying for a tax credit under 32 V.S.A. § 5830b shall at all times be invested in the form of equity or convertible securities. This provision shall not prohibit the generally accepted business practice of earning interest on working funds deposited in relatively secure accounts such as savings and money market funds. § 292. INITIAL ORGANIZATION (a) In order to provide for the initial organization of the fund, the governor shall appoint a committee to act as founders, consisting of five individuals having business background and experience. The committee shall incorporate the Vermont seed capital fund organizing corporation by filing the articles of incorporation with the secretary of state. (b) If the directors of the Vermont seed capital fund organizing corporation organize the fund as a corporation, the organizing corporation shall file the articles of incorporation of the Vermont seed capital fund, a corporation with the secretary of state.

JOURNAL OF THE HOUSE 14 (c) In the event the directors of the Vermont seed capital fund organizing corporation organize the fund as a limited partnership, the organizing corporation shall file the certificate and partnership articles of the Vermont seed capital fund, a limited partnership with the secretary of state. (d) These documents shall reflect the purposes of this chapter and conform to the limitations in section 291 of this title and shall not be adopted or amended without conformity with this chapter and Title 11. (e) If the fund is organized as a limited partnership, the Vermont seed capital fund organizing corporation shall initially be a general partner. The directors of the Vermont seed capital fund organizing corporation shall thereafter select a general partner or partners to manage the fund; the articles of partnership shall be amended and the Vermont seed capital fund organizing corporation shall be dissolved and its existence terminated. § 293. CAPITALIZATION The fund may solicit and receive subscriptions provided that subscriptions for amounts exceeding $2 million shall be reduced pro rata among subscribers subscribing for more than $2 million in the event the issue is oversubscribed by the termination date as set by the fund. The minimum capitalization shall be $1 million. Sec. 7. REPEAL Chapter 14 of Title 10 (Vermont Venture Capital Fund) is repealed, effective July 1, 2010. Sec. 8. 32 V.S.A. § 5830b is amended to read: § 5830b. TAX CREDITS; VERMONT VENTURE SEED CAPITAL FUND (a) The initial $3 million of capitalization of the Vermont venture seed capital fund, comprising a maximum $2 million raised from Vermont taxpayers on or before January 1, 1993 2014, shall entitle those taxpayers to a credit against the tax imposed by sections 5822, 5832, 5836, or 8551 of this title. The credit may be claimed for the taxable year in which a contribution is made and each of the eight four succeeding taxable years. The amount of the credit for each year shall be the lesser of ten 20 percent of the taxpayer’s contribution or 50 percent of the taxpayer’s tax liability for that taxable year prior to the allowance of this credit; provided, however, that in no event shall the aggregate credit allowable under this section for all taxable years exceed 50 percent of the taxpayer’s contribution to the initial $3 total $2 million capitalization of the Vermont venture seed capital fund. The credit shall be nontransferable except as provided in subsection (b) of this section. 15 THURSDAY, MAY 20, 2004 (b) If the taxpayer disposes of an interest in the Vermont venture seed capital fund within six four years after the date on which the taxpayer acquired that interest, any unused credit attributable to the disposed-of interest is disallowed. This disallowance does not apply in the event of an involuntary transfer of the interest, including a transfer at death to any heir, devisee, legatee, or trustee, or in the event of a transfer without consideration to or in trust for the benefit of the taxpayer or one or more persons related to the taxpayer as spouse, descendant, parent, grandparent, or child. Sec. 9. EFFECTIVE DATE Sec. 8 of this act (Vermont seed capital fund tax credit) shall apply to contributions made in taxable years 2004 and after. Sec. 10. 10 V.S.A. § 221(d) is added to read: (d) The authority shall develop and adopt policies and underwriting criteria pursuant to which the authority may insure mortgage payments under subsections (a) and (c) of this section required to repay loans made by the mortgagee for the purpose of financing the costs of eligible film projects, which for the purposes of this section means a film project that complies with all the following: (1) At least 70 percent of the shooting days of the film project shall take place in Vermont. (2) Vermont residents shall comprise at least 30 percent of the film production crew. Sec. 11. 11 V.S.A. chapter 21, subchapter 13 is added to read: Subchapter 13. Foreign Law Limited Liability Companies § 3181. ELECTION A limited liability company formed under this chapter may elect to be a foreign law limited liability company by complying with all the following: (1) Designating itself as such in its articles of organization filed pursuant to section 3023 of this title. (2) Including in its name either the term “foreign law limited liability company,” the term “Foreign Law Company,” or the abbreviation “F.L.L.L.C.” or “F.L.C.” in lieu of the words or abbreviations required under subsection 3005(a) of this title. (3) Complying with the requirements of this subchapter and paying the filing fees pursuant to section 3013 of this title. § 3182. DESIGNATION OF CONTROLLING FOREIGN LAW

JOURNAL OF THE HOUSE 16 (a) A foreign law limited liability company shall designate in its articles of organization all the following: (1) A specific law or body of law of a foreign jurisdiction, either within or outside the United States of America, that will control the internal governance affairs of the company. (2) The type of organization that will control how the foreign law limited liability company is treated under the foreign law and all matters that are required to be included in the constituent filing for that type of organization under that foreign law. (3) Any variations or limitations on the applicability of the foreign law and any mechanisms for amending, rescinding, or limiting the designation in the future. (4) The courts, if any, that, in addition to the courts of the state of Vermont and the United States, will have jurisdiction over disputes relating to the internal governance affairs of the foreign law limited liability company. (c) Vermont law shall determine whether an issue is a matter of internal governance affairs of the company. (b) Any bylaws, agreements, or other statements of principles governing the internal governance affairs of the foreign law limited liability company addressed in the applicable foreign law but not required to be in the constituent filing shall be set forth as part of, or in lieu of, the operating agreement required by section 3003 of this title. The prohibitions on a waiver under subsection 3003(b) shall not apply to foreign law limited liability companies. § 3183. SCOPE OF DESIGNATED FOREIGN LAW (a) In any disputes over the internal governance affairs of a foreign law limited liability company, the designated foreign law or body of law shall be applied by any court having jurisdiction over the parties as the binding authority governing these matters, provided that no designated law shall be enforced that: (1) Is contrary to provisions of Vermont or United States law or public policy. (2) Will work a fraud or manifest injustice under Vermont or United States law. (3) Purports to limit the civil or criminal liability of an individual, partnership, or entity under Vermont or United States law. 17 THURSDAY, MAY 20, 2004 (4) Varies or limits the filing procedures for creating a limited liability company required by this title. (b) Whether an issue is a matter of internal governance affairs of the company shall be determined under Vermont law. (c) If a court determines that the designated law does not address an internal governance matter or addresses it in a manner that is unenforceable pursuant to subsection (a) of this section, or a limitation or variation relating to the issue is specified in the articles of organization, Vermont law shall apply to the matter at issue. (d) All the external affairs of the foreign law limited liability company shall be governed by the general provisions of this chapter, the articles of organization other than choice of foreign law, the operating agreement, and applicable Vermont and federal laws. § 3184. JURISDICTION (a) Vermont and other courts designated pursuant to section 3182 of this title shall have jurisdiction over all disputes relating to the internal governance affairs of a foreign law limited liability company. (b) In adjudicating any dispute relating to the internal governance affairs of a foreign law limited liability company, the court may rely on its own English translation of the designated law and on testimony of experts, opinions of counsel, advisory opinions, or declaratory or binding judgments, and other appropriate evidence. Sec. 12. PROMOTION TO FOREIGN BUSINESSES The agency of commerce and community development shall promote the utilization of foreign law limited liability companies as authorized under subchapter 13 of chapter 21 of Title 11 to attract foreign companies and businesses to locate in Vermont in furtherance of the purposes of this act. Sec. 13. 24 V.S.A. § 2793a is amended to read: § 2793a. DESIGNATION OF VILLAGE CENTERS BY STATE BOARD (a) A town that has a duly adopted and approved town plan and a planning process that is confirmed in accordance with section 4350 of this title, and that has given notice to the regional planning commission and the regional development corporation of its intent to apply for this designation, may apply to the state board for designation of one or more of its village center centers. If an incorporated village of a town has an approved municipal plan and a planning process independently confirmed in accordance with section 4350 of this title, the incorporated village shall be the applicant for designation of its

JOURNAL OF THE HOUSE 18 village center. An application for designation must include a map that delineates the boundaries of the village center consistent with the definition of “village center” provided in subdivision 2791(10) of this title and evidence that notice has been given to the regional planning commission and the regional development corporation of the intent to apply for this designation. (b) Within 45 days of receipt of a completed application, the state board shall designate a village center if the state board finds the applicant has met the requirements of subsection (a) of this section. (c) A town with a village center designated by the state board pursuant to subsection (a) of this section is eligible for the following development incentives and benefits: * * * Sec. 14. 24 V.S.A. § 4306(b) is amended to read: (b) Disbursement to regional planning commissions shall be according to a formula to be adopted by rule under chapter 25 of Title 3 by the department for the assistance of the regional planning commissions. The rules shall give due consideration to the region’s progress in adopting a regional plan. Disbursement to municipalities shall be through a competitive program administered by the department providing the opportunity for any eligible municipality or municipalities to compete regardless of size, provided that to receive funds a municipality shall: (1) Shall be confirmed under section 4350 of this title; or (2)(A) Shall use the funds for the purpose of developing a municipal plan to be submitted for approval by the regional planning commission, as required for municipal confirmation under section 4350 of this title ; and (B) Shall have voted at an annual or special meeting to provide local funds for municipal and regional planning purposes. (c) Funds allocated to municipalities shall be used for the purposes of: (1) funding the regional planning commission in undertaking capacity studies; (2) carrying out the provisions of subchapters 5 through 7 of 24 V.S.A. chapter 117; and (3) acquiring development rights, conservation easements, or title to those lands, areas and strictures identified in either regional or municipal plans as requiring special consideration for provision of needed housing, aquifer protection, open space, farmland preservation, or other conservation purposes. 19 THURSDAY, MAY 20, 2004 Was taken up and pending the question, Shall the House concur in the Senate proposal of amendment? Rep. Pugh of South Burlington moved that the House concur with the Senate proposal of amendment with the following amendment thereto: First: In Sec. 6., 10 V.S.A. chapter 14A, in § 291(b)(7), by striking subdivision (B) and inserting in lieu thereof the following: (B) Each Vermont seed capital fund investment in any one firm, in any 12-month period shall be limited to a maximum of ten percent of the Vermont seed capital fund’s capitalization and, for the life of the fund, to a maximum of 20 percent of the fund’s total capitalization. Second: In Sec. 8., 32 V.S.A. § 5830b, by striking subsection (a) and inserting in lieu thereof the following: (a) The initial $3 million of capitalization of the Vermont venture seed capital fund, comprising a maximum $2 million raised from Vermont taxpayers on or before January 1, 1993 2007, shall entitle those taxpayers to a credit against the tax imposed by sections 5822, 5832, 5836, or 8551 of this title. The credit may be claimed for the taxable year in which a contribution is made and each of the eight four succeeding taxable years. The amount of the credit for each year shall be the lesser of ten percent of the taxpayer’s contribution or 50 percent of the taxpayer’s tax liability for that taxable year prior to the allowance of this credit; provided, however, that in no event shall the aggregate credit allowable under this section for all taxable years exceed 50 percent of the taxpayer’s contribution to the initial $3 $2 million capitalization of the Vermont venture seed capital fund. The credit shall be nontransferable except as provided in subsection (b) of this section. Third: In Sec. 11, 11 V.S.A. § 3182, in subsection (a), by adding a subdivision (5) to read: (5) A designation of those classes of individuals or officers within the chosen legal structure who shall have authority to act on behalf of the foreign law limited liability company equivalent to the authority of managers under subsections 3041(b) and (c) of this title, and any limitations on or clarification of that authority. and by striking (c) in its entirety Fourth: In Sec. 11, in 11 V.S.A. § 3183, by inserting at the beginning of subsection (b) the following: For purposes of this subchapter “internal governance affairs” means the relations among the limited liability company, its members and managers.

JOURNAL OF THE HOUSE 20 Fifth: By adding new Secs. 15, 16, 17, 18, and 19 to read as follows: Sec. 15. 30 V.S.A. § 202c is amended to read: § 202c. STATE TELECOMMUNICATIONS; POLICY AND PLANNING (a) The general assembly finds that advances in telecommunications technology and changes in federal regulatory policy are rapidly reshaping telecommunications services, thereby promising the people and businesses of the state vastly improved communication and access to information, but shifting costs to local telephone users and threatening universal basic service while creating new challenges for maintaining a robust, modern telecommunications network in Vermont. (b) Therefore, to direct the benefits of improved telecommunications technology to all Vermonters, it is the purpose of this section and section 202d of this title to: (1) strengthen Strengthen the state’s role in telecommunications planning; and. (1) protect basic local exchange telephone service to Vermont residents by permitting the state to enter into a contract with providers of such services, at reasonable cost and superior quality; (2) provide the benefits of advances in telecommunications technology to Vermont residents either through a contract or by supporting competition through the reduction or suspension of regulatory requirements over any telecommunications service in which a competitive market exists; (3) strengthen the state's role in telecommunications planning; and (4) separate and make independent from the planning and regulatory agencies the function of public advocacy for advocating, monitoring and reporting on contracts for basic exchange telephone services. (2) Support the universal availability of appropriate infrastructure and affordable services for transmitting voice and high-speed data. (3) Support the availability of modern mobile wireless telecommunications services along the state’s travel corridors and in the state’s communities. (4) Provide for high-quality, reliable telecommunications services for Vermont businesses and residents. (5) Provide the benefits of future advances in telecommunications technologies to Vermont residents and businesses. 21 THURSDAY, MAY 20, 2004 (6) Support competitive choice for consumers among telecommunications service providers. (7) Support the application of telecommunications technology to maintain and improve governmental and public services, public safety, and the economic development of the state. Sec. 16. 30 V.S.A. § 202d is amended to read: § 202d. TELECOMMUNICATIONS PLANNING PLAN (a) The department of public service, through the director for regulated utility planning, shall constitute the responsible utility planning agency of the state for the purpose of obtaining for all consumers in the state stable and predictable local exchange rates and toll rates and a technologically advanced telecommunications network serving all local exchange service areas in the state. The director department of public service shall be responsible for the provision of plans for meeting emerging trends related to telecommunications, demand, supply, basic services, technology, markets, financing, and competition. (b) The department, through the director, of public service shall prepare a telecommunications plan for the state. The department of innovation and information and the agency of commerce and community development shall assist the department of public service in preparing the plan. The plan shall be for a 10 year seven-year period and shall serve as a basis for state telecommunications policy. The plan shall include at a minimum Prior to preparing the plan, the department of public service shall prepare: (1) an overview, looking ten seven years ahead, of statewide growth and development as they relate to future requirements for telecommunications services, including patterns of urban expansion, statewide and service area economic growth, shifts in transportation modes, considering services needed for economic development, technological advances, and other trends and factors which, as determined by the director department of public service, will significantly affect state telecommunications policy and programs; (2) a survey of Vermont residents and businesses, conducted in cooperation with the agency of commerce and community development, to determine what telecommunications services are needed now and in the succeeding ten seven years; (3) a study and evaluation of conversion to measured service as ordered by the board an assessment of the current state of telecommunications infrastructure, including, to the best of the department’s ability, the effects of the sales and use tax exemption authorized pursuant to 32 V.S.A. § 9741(48);

JOURNAL OF THE HOUSE 22 (4) an assessment, conducted in cooperation with the department of innovation and information, of the current state telecommunications system and evaluation of alternative proposals for upgrading the system to provide the best available and affordable technology for use by government; and (5) an assessment of the state of telecommunications networks and services in Vermont relative to other states, including price comparisons for key services and comparisons of the state of technology deployment. (c) In developing the plan, the department shall take into account the policies and goals of section 202c of this title, and the need for basic service at affordable rates, improved competition among providers, the needs of the state as user of telecommunications services, and future development of the state. (d) In establishing plans, public hearings shall be held and the director department of public service shall consult with members of the public, representatives of telephone telecommunications utilities, other providers, and other interested state agencies, particularly the agency of commerce and community development and the department of innovation and information, whose views shall be considered in preparation of the plan. To the extent necessary, the director department of public service shall include in the plan, surveys to determine existing, needed, and desirable plant improvements and extensions, access and coordination between telecommunications providers, methods of operations, and any change that will produce better service or reduce costs. To this end, the director department of public service may require the submission of data by each company subject to supervision as the director deems desirable by the public service board. (e) Before adopting a plan, the department shall conduct public hearings on a final draft and shall consider the testimony presented at such hearings in preparing the final plan. At least one hearing shall be held jointly with committees of the general assembly designated by the general assembly for this purpose. The department shall then accept the plan or modify it in accordance with the evidence presented at such hearings. The plan shall be adopted by January 1, 1989 September 1, 2004. (f) The director shall annually review that portion of a plan which extends over the next three years. The department, through the director, shall annually extend the plan by one additional year; and from time to time, but in no event less than every three years, institute proceedings to review a plan and make revisions, where necessary. The three year three-year major review and any interim revisions shall be made according to the procedures established in this section for initial adoption of the plan. For good cause or upon request by a joint resolution passed by the general assembly, an interim review and revision 23 THURSDAY, MAY 20, 2004 of any section of the plan may be made after conducting public hearings on the interim revision. At least one hearing shall be held jointly with committees of the general assembly designated by the general assembly for this purpose. Sec. 17. 22 V.S.A. § 901 is amended to read: § 901. CREATION OF DEPARTMENT There is created the department of information and innovation within the agency of administration. The department shall have all the responsibilities assigned to it by law, including the following: * * * (9) to inventory technology assets within state government; and (10) to coordinate information technology training within state government; and (11) to support the statewide development of broadband telecommunications infrastructure and services, in a manner consistent with the telecommunications plan prepared pursuant to 30 V.S.A. § 202d and community development objectives established by the agency of commerce and community development, by: (A) purchasing telecommunications services or facilities at rates competitive within the national marketplace; (B) sharing bandwidth with service providers or other users; (C) establishing equipment collocation arrangements with service providers; or (D) making other reasonable arrangements. Sec. 18. COMPENSATION FOR LEASE OF STATE PROPERTY Prior to January 1, 2007, the secretary of administration, when acting pursuant to his or her authority under 30 V.S.A. § 227b, shall be authorized to collocate new telecommunications services to the public on existing infrastructure and to waive compensation from leases due to the state for a period not to exceed three years from the date of installation. Compensation shall only be waived based upon a wireless telecommunications service provider having first entered into a written agreement with the secretary of administration to reimburse the state for any costs associated with site preparation, permitting, development, and removal of equipment, and having certified and provided documentation demonstrating that: (1) the site located on state property will provide new or improved service; and

JOURNAL OF THE HOUSE 24 (2) there are no reasonable alternative sites which would serve a substantially similar area which are commercially available. Sec. 19. EFFECTIVE DATE This act shall take effect from passage, except Sec. 11 which shall take effect on January 1, 1005. and, upon passage, the title shall be amended to read: “ AN ACT RELATING TO THE REDEVELOPMENT OF CONTAMINATED PROPERTIES PROGRAM AND STATE TELECOMMUNICATIONS POLICY” Which was agreed to. Rules Suspended; Senate Proposal of Amendment Concurred in With a Further Amendment Thereto H. 784 On motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to income tax; Appearing on the Calendar for notice, was taken up for immediate consideration. The Senate proposes to the House to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following: * * * Corporate Income Tax and Other Corporate Taxes * * * Sec. 1. STATEMENT OF INTENT In recognition of the fact that corporate business is increasingly conducted on a national and international basis, it is the intent of the general assembly to adopt a unitary combined system of income tax reporting for corporations, and as an integral part of this proposal, to lower the corporate income tax rates. Vermont’s separate accounting system is inadequate to measure accurately the income of a corporation with non-Vermont affiliates and creates tax disadvantages for Vermont corporations which compete with multistate and multinational corporations doing business in Vermont. It is the intent of the general assembly, in adopting a unitary combined reporting system, to put all corporations doing business in Vermont on an equal income tax footing, and with the revenue from the expanded and more accurate tax base, to lower Vermont’s corporate income tax rates. Sec. 2. 32 V.S.A. § 5811 is amended to read: 25 THURSDAY, MAY 20, 2004 § 5811. DEFINITIONS The following definitions shall apply throughout this chapter unless the context requires otherwise: * * * (18) “Vermont net income” means, for any taxable year and for any corporate taxpayer, : (A) the taxable income of the taxpayer for that taxable year under the laws of the United States, without regard to Section 168(k) of the Internal Revenue Code, and excluding income which under the laws of the United States is exempt from taxation by the states, : (A)(i) increased by: (I) the amount of any deduction for state and local taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes; and (B)(II) to the extent such income is exempted from taxation under the laws of the United States by the amount received by the taxpayer on and after January 1, 1986 as interest income from state and local obligations, other than obligations of Vermont and its political subdivisions, and any dividends or other distributions from any fund to the extent such dividend or distribution is attributable to such Vermont state or local obligations. However, “Vermont net income” shall not include; and (ii) decreased by: (I) the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit or ; and (II) the amount of income which results from the required reduction in salaries and wages expense for corporations claiming the Targeted Job or WIN credits. (B) In the case of an “electing small business corporation” (“Subchapter S Corporation”) under the laws of the United States, “Vermont net income” shall include only the Vermont net income of the corporation (as defined in this section) which is taxable to the corporation under the provisions of the Internal Revenue Code. (C) For a taxable corporation that is a member of an affiliated group and that is engaged in a unitary business with one or more other members of

JOURNAL OF THE HOUSE 26 that affiliated group, “Vermont net income” is the allocable share of the combined net income of the group. * * * (22) “Affiliated group” means a group of two or more corporations in which more than 50 percent of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member corporations, but shall exclude overseas business organizations or corporations taxable under section 6014 of Title 8. (23) “Unitary business” means one or more related business organizations engaged in business activity both within and without the state among which there exists a unity of ownership, operation, and use; or an interdependence in their functions. (24) “Overseas business organization” means a business organization that ordinarily has 80 percent or more of its payroll and property outside the 50 states and the District of Columbia. Sec. 3. 32 V.S.A. § 5832 is amended to read: § 5832. TAX ON INCOME OF CORPORATIONS A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, such tax being the greater of (1) an amount determined in accordance with the following schedule: Vermont net income of the corporation for the taxable year allocated or appor- tioned to Vermont under section 5833 of this title Tax 0-10,000.00 7.00% 6.00% $ 10,001.00-25,000.00 $700.00 plus 8.10% of the excess over $10,000.00 $600.00 plus 7.0% of the excess over $10,000.00 25,001.00-250,000.00 $1,915.00 plus 9.20% of the excess over $25,000.00 $1,650.00 plus 8.75% of the excess over $25,000.00 27 THURSDAY, MAY 20, 2004 250,001.00 and over $22,615.00 plus 9.75% of the excess over $250,000.00 $19,688.00 plus 8.90% of the excess over $250,000.00; or * * * Sec. 4. 32 V.S.A. § 5832 is amended to read: § 5832. TAX ON INCOME OF CORPORATIONS A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, such tax being the greater of (1) an amount determined in accordance with the following schedule: Vermont net income of the corporation for the taxable year allocated or appor- tioned to Vermont under section 5833 of this title Tax 0-10,000.00 6.00% $ 10,001.00-25,000.00 $600.00 plus 7.0% of the excess over $10,000.00 25,001.00-250,000.00 and over $1,650.00 plus 8.75% 8.5% of the excess over $25,000.00; 250,001.00 and over $19,688.00 plus 8.90% of the excess over $250,000.00 or * * * Sec. 5. 32 V.S.A. § 5833(a) is amended to read: (a) If the income of a taxable corporation is derived from any trade, business, or activity conducted entirely within this state, the Vermont net income of the corporation shall be allocated to this state in full. If the income of a taxable corporation is derived from any trade, business or activity conducted both within and without this state, the amount of the corporation’s Vermont net income which shall be apportioned to this state, so as to allocate to this state a fair and equitable portion of that income, shall be determined by multiplying that Vermont net income by the arithmetic average of the following factors, with the sales factor described in subdivision (3) double - weighted:

JOURNAL OF THE HOUSE 28 * * * Sec. 6. REPEAL 32 V.S.A. § 5836(e) (bank franchise tax limitation by federal taxable income) is repealed upon passage of this act, and no limit on bank franchise tax shall be available based on federal taxable income for a corporate taxable year ending on or after the effective date of this act. Sec. 7. 32 V.S.A. § 5862(d) is added to read: (d) A taxable corporation which is part of an affiliated group engaged in a unitary business shall file a group return containing the combined net income of the affiliated group and such other informational returns as the commissioner shall require by rule. Sec. 8. REPEAL 32 V.S.A. § 5837 (limiting corporate income tax on holding companies to minimum tax) is repealed for taxable years beginning on or after January 1, 2006. Sec. 9. REPEAL Subchapter 3 of chapter 211 of Title 32 (franchise tax on car and transportation companies) is repealed for taxable years beginning on or after January 1, 2006. Sec. 10. 32 V.S.A. § 8522(c) is amended to read: (c) For any taxable year, a taxpayer shall give notice of its election to pay the tax imposed by this section by filing a quarterly gross receipts tax return no later than 25 days following the last day of the third month of the taxable year. Once made, an election shall remain in effect for at least three full taxable ears. No election to pay the tax imposed by this section shall be made by a taxpayer that did not make the election in the previous year. * * * Amusement Machines * * * Sec. 11. REPEAL Chapter 201 of Title 32 (amusement machines) is repealed. Sec. 12. 32 V.S.A. § 9771 is amended to read: Except as otherwise provided in this chapter, there is imposed a tax on retail sales in this state. The tax shall be paid at the rate of six percent of the sales price charged for the following: (1) Tangible personal property sold at retail in this state. 29 THURSDAY, MAY 20, 2004 * * * (4) Admission to places of amusement, including athletic events, exhibitions, dramatic and musical performances, motion pictures, golf courses and ski areas, and access to cable television systems or other audio or video programming systems that operate by wire, coaxial cable, lightwave, microwave, satellite transmission, or by other similar means, and access to any game or gaming or amusement machine, apparatus or device, excluding video game, pinball, musical, vocal or visual entertainment machines which are operated by coin, token or bills. * * * * * * Taxation of Lottery Prizes * * * Sec. 13. REPEAL 31 V.S.A. § 664 and § 674(s) (lottery prize income tax exemption) are repealed for taxable years beginning on or after January 1, 2005. Sec. 14. 32 V.S.A. § 5823(b) is amended to read: (b) For any taxable year, the Vermont income of a nonresident individual, estate or trust is the sum of the following items of income to the extent they are required to be included in the adjusted gross income of the taxpayer for the taxable year: * * * (6) Proceeds from any Vermont state lottery, tri-state lottery or multijurisdictional lottery ticket paid to a person who purchased the ticket in Vermont, including payments received from a third party for the transfer of the rights to future proceeds related to the ticket, and the commissioner may require withholding of any taxes due to the state under this subdivision from payments of lottery proceeds. Sec. 15. 24 V.S.A. § 138(a) is amended to read: § 138. LOCAL OPTION TAXES * * * (2) a municipality opting to impose a local option tax may do so prior to July 1, 1998 to be effective beginning January 1, 1999, and anytime after December 1, 1998 a local option tax shall be effective beginning on the next tax quarter following 30 90 days’ notice to the department of taxes of the imposition; and all authority to opt to impose a local option tax under this section shall terminate September 1, 2007, and all authority to impose a local option tax shall terminate on December 31, 2008; and

JOURNAL OF THE HOUSE 30 * * * Sec. 16. 32 V.S.A. § 9701(20), (22), and (29) are amended to read: (20) Vermont service address: means the location in Vermont of communications services equipment from which the telecommunications services are originated or at which communications services are received by a purchaser. In the event this may not be a defined location, as in the case of maritime systems, air-to-ground systems and the like, Vermont service address shall mean the location in Vermont of a taxpayer’s primary use of the communications services equipment as defined by telephone number authorization code, or location in this state where bills are sent. In the case of charges for mobile telecommunications services, Vermont service address shall mean the location in Vermont of the customer’s place of primary use. (22) Place of primary use: means place of primary use as defined in 4 U.S.C. § 124. (29) Drug: means a compound, substance, or preparation, and any component of a compound, substance, or preparation, including blood, blood plasma, insulin, and oxygen, but not including food and food ingredients, dietary supplements, alcoholic beverages, or grooming and hygiene products, that is: * * * Sec. 17. 32 V.S.A. § 9741(2) is amended to read: (2) Drugs intended for human use, durable medical equipment, mobility enhancing equipment, and prosthetic devices and supplies, including blood, blood plasma, insulin, and medical oxygen, used in treatment intended to alleviate human suffering or to correct, in whole or in part, human physical disabilities. Sec. 18. 32 V.S.A. § 9771(5) is amended to read: (5) Telecommunications service provided to a Vermont service address. Sec. 19. 32 V.S.A. § 9772(a) is amended to read: (a) For the purpose of adding and collecting the tax imposed by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof, to be reimbursed to the vendor by the purchaser, the vendor shall use either the calculation in subdivision (1) of this subsection or the formula in subdivision (2). The tax required to be remitted shall be the rate specified in section 9771 of this title multiplied by the total sales price of all the taxable transactions; provided, however, the tax required to be remitted shall be no more than the amount required to be collected. The vendor shall be 31 THURSDAY, MAY 20, 2004 entitled to retain any amount lawfully collected by the person in excess of the tax imposed by this chapter. (1) The total sales price of the transaction multiplied by the rate specified in section 9771 of this title carried to the third decimal place and rounded up to the nearest whole cent if the third decimal point is greater than four and rounded down to the nearest whole cent if the third decimal point is four or less. The tax may be computed on either the total invoice amount or on each taxable item. * * * Sec. 20. 32 V.S.A. § 9703(d) is added to read: (d) A person required to collect the tax may also refund or credit to the purchaser any tax erroneously, illegally, or unconstitutionally collected. No cause of action that may exist under state law shall accrue against the seller for the tax collected unless the purchaser has provided written notice to a seller, and the seller has had 60 days to respond. Such notice must contain such information necessary to determine the validity of the request. A seller who uses either a provider or a system, including a proprietary system, that is certified by the state and who has remitted to the state all taxes collected less any deductions, credits, or collected allowances shall be presumed to have a reasonable business practice. Sec. 21. 32 V.S.A. § 3201(e) is added to read: (e) Agreements with certified service providers. The commissioner may enter into agreements with certified service providers, sellers using certified automated systems, and voluntary sellers for monetary allowances. The tax required to be paid to the department shall be net of monetary allowances. (1) The allowance for a certified service provider shall be funded entirely from money collected by the provider and shall be either a base rate applied to taxable transactions processed by the provider or, for a period not to exceed 24 months following a voluntary seller’s registration through the streamlined sales tax agreement central registration process, a percentage of tax revenue generated for the state for which the seller does not have a requirement to register to collect the tax, or both. (2) The allowance for a seller using a certified automated system shall be for a period not to exceed 24 months following a seller’s voluntary registration and may include a base rate applied to taxable transactions and a percentage of tax revenue generated for the state for which the seller does not have a requirement to register to collect the tax.

JOURNAL OF THE HOUSE 32 (3) The allowance for a voluntary seller shall be for a period not to exceed 24 months following a seller’s voluntary registration and shall be based on a percentage of tax revenue generated for the state for which the seller does not have a requirement to register to collect the tax. * * * Report * * * Sec. 22. REPORT; RECOMMENDATION The Department of Taxes shall report to the House Committee on Ways and Means and the Senate Committee on Finance by February 1, 2005, on the department’s proposed rules and its recommendations for legislation with respect to implementation of unitary combined reporting. The department shall also include in its report (1) proposed details on the inclusion of subpart F, corporate inversion, or other tax-haven deemed income in the unitary tax base; (2) an estimate of the cost and effects of allowing a double-weighting of the sales factor in corporate income apportionment, a recommendation of whether the throwback rule for taxation of sales income should be retained and if not, whether it should be replaced with any other method of taxation; and (3) alternative measures for encouraging business growth which are estimated to cost the same as allowing double-weighting of the sales factor. * * * Effective Dates * * * Sec. 23. EFFECTIVE DATES This act shall take effect upon passage, except: (1) Secs. 2, 3, and 7 (unitary combined reporting and tax rates) shall apply to taxable years beginning on or after January 1, 2006. (2) Sec. 4 (corporate tax rates) shall apply to taxable years beginning on or after January 1, 2007. (3) Sec. 5 (double-weighting of sales factor) shall apply to taxable years beginning on or after January 1, 2006. (4) Sec. 14 (taxation of lottery proceeds) shall apply to taxable years beginning on or after January 1, 2005. (5) Secs. 15 through 22 (streamlined sales tax conforming technical amendments) shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than April 1, 2005. * * *Update of Link to Federal Laws* * * Sec. 24. 32 V.S.A. § 5824 is amended to read: 33 THURSDAY, MAY 20, 2004 § 5824. ADOPTION OF FEDERAL INCOME TAX LAWS The statutes of the United States relating to the federal income tax, as in effect for taxable year 2002 2003, but without regard to federal income tax rates under Section 1 of the Internal Revenue Code, are hereby adopted for the purpose of computing the tax liability under this chapter. Sec. 25. 32 V.S.A. § 7475 is amended to read: § 7475. ADOPTION OF FEDERAL ESTATE AND GIFT TAX LAW The laws of the United States, relating to the federal estate and gift taxes as in effect on January 1, 2003 2004, are hereby adopted for the purpose of computing the tax liability under this chapter, except with the credit for state death taxes under Sections 2011 and 2604 as in effect on January 1, 2001, of the Internal Revenue Code, and without any deduction for state death taxes under Section 2058 of the Internal Revenue Code. Sec. 26. EFFECTIVE DATES Sec. 24 of this act (update of link to Federal income tax laws) shall apply to taxable years beginning on and after January 1, 2003; and Sec. 25 of this act (update of link to Federal estate and gift tax laws) shall apply to estates of decedents with a date of death on or after, and gifts made on or after, January 1, 2004. Sec. 27. Sec. 87, subdivision (17) of No. 68 of the Acts of 2003 is amended to read: (17) Secs. 51-67, relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005 April 1, 2005. Pending the question, Shall the House concur in the Senate proposal of amendment? Rep. Marron of Stowe proposed that the House concur with the Senate proposal of amendment when further amended in Subsection 23(5) and in Sec. 27, by striking “April 1, 2005” and inserting in lieu thereof “July 1, 2005”. Which proposal of amendment was considered and concurred in.

JOURNAL OF THE HOUSE 34 Bills Messaged to Senate Forthwith On motion of Rep. Symington of Jericho, the rules were suspended and the following bills were ordered messaged to the Senate forthwith: S. 42 Senate bill, entitled An act relating to creating an office of land recycling, and otherwise revising the brownfields reclamation program; H. 784 House bill, entitled An act relating to income tax; Recess At twelve o’clock and forty minutes in the afternoon, the Speaker declared a recess until the fall of the gavel. Afternoon Rep. Hube of Londonderry in Chair. At one o’clock and forty minutes in the afternoon, the Speaker called the House to order. Rules Suspended; Report of Committee of Conference Adopted H. 566 On motion of Rep. Partridge of Windham, the rules were suspended and House bill, entitled An act relating to civil monetary penalty for welfare fraud; Appearing on the Calendar for notice, was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill, respectfully reports that it has met and considered the same and recommends that the House accede to the Senate’s proposal of amendment and that the bill be amended by changing the title of the bill to read: AN ACT RELATING TO MEDICAID FRAUD 35 THURSDAY, MAY 20, 2004 Committee on the Part of Committee on the Part of the Senate the House Sen. Richard Sears Rep. Michael Kainen Sen. John Bloomer Rep. Richard Marek Sen. Susan Bartlett Rep. William Lippert Which was considered and adopted on the part of the House. Rules Suspended; Report of Committee of Conference Adopted H. 764 On motion of Rep. Partridge of Windham, the rules were suspended and House bill, entitled An act relating to the state’s transportation capital program and project development plan; Appearing on the Calendar for notice, was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate recede from its proposal of amendment and that the bill be further amended by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. TRANSPORTATION CAPITAL PROGRAM FOR 2005; PROJECT DEVELOPMENT PLAN FOR 2006-2009; APPROVAL OF PROJECT CANCELLATIONS (a) The transportation capital program for fiscal year 2005 and project development plan for fiscal years 2006-2009, appended to the agency of transportation’s proposed fiscal year 2005 budget, as amended by this act, are adopted to the extent federal, state, and local funds are available. The transportation capital program and project development plan hereby adopted supersede all previous transportation capital programs and project development plans. (b) As used in this act, unless otherwise indicated, the term “agency” means the agency of transportation and the term “secretary” means the secretary of transportation. As used in this act, the table heading “As Proposed” means the transportation capital program and project development

JOURNAL OF THE HOUSE 36 plan referenced in subsection (a) of this section; the table heading “As Amended” means the amendments as made by this act; the table heading “Change” means the difference obtained by subtracting the “As Proposed” figure from the “As Amended” figure; and the term “change” or “changes” in the text refers to the project- and program-specific amendments, the aggregate sum of which equals the net “Change” in the applicable table heading. * * * Program Development – Paving * * * Sec. 2. PAVING PROGRAM (a) Total authorized spending in the program development – paving program is modified as follows: FY05 As Proposed As Amended Change Total 32,535,000 32,892,683 357,683 Source of Funds State 8,480,500 7,578,183 -902,317 Federal 24,054,500 25,314,500 1,260,000 (b) These changes are made: (1) to adjust for the shifting of $1,200,000 in transportation funds from fiscal year 2005 to fiscal year 2004 to initiate paving work in the spring of 2004; and (2) to add $297,683 in transportation funds and $1,260,000 in federal funds for the Waterbury Interstate 89 paving project and, at the discretion of the secretary, other approved projects in the paving program in the fiscal year 2005 transportation capital program. * * * Program Development – Roadway Program * * * Sec. 3. PROGRAM DEVELOPMENT – ROADWAY PROGRAM The following modifications are made to the program development – roadway program: (1) Due to scheduling delays, funding for the Burlington Riverside Avenue MEGC 5000(15), page 2, is amended to read: FY05 As Proposed As Amended Change PE 0 ROW 0 Construction 2,700,000 1,818,000 -882,000 Other 0 0 0 Total 2,700,000 1,818,000 -882,000 37 THURSDAY, MAY 20, 2004 Source of Funds State 60,000 33,540 -26,460 Federal 1,900,000 1,062,100 -837,900 Local 740,000 722,360 -17,640 (2) Due to scheduling delays, funding for the Burlington southern connector MEGC M 5000(1) project within the development and evaluation program is reduced by $16,170 in transportation funds, $512,050 in federal funds, and $10,780 in local funds. (3) In fulfillment of the state’s obligations with respect to the siting of the southeastern Vermont correctional facility, the Springfield STP 0136( ) project shall be prioritized within the roadway development and evaluation program in fiscal year 2005 to the extent required to develop the project to shelf project status for construction in fiscal year 2006 by the time the agency presents its proposed fiscal year 2006 transportation program to the general assembly. (4) Within the funds authorized for program development roadway development and evaluation, the agency shall allocate $50,000 to initiate scoping for the Route 5 Putney Road project STP 2000( ). (5) A new project is added to the SFY 2004 and SFY 2005 development and evaluation section: The following project has received earmarked Federal Highway Administration Surface Transportation Funds in the amount of $1,000,000.00 for the necessary construction of a new road, “Market Street,” in the city of South Burlington. This project shall appear as follows: South Burlington Market Street STP 5200( ) Construction of Market Street (6) A new project is added for state FY 2005 as follows: Project Colchester TCSP TCSE(007) has received a Transportation Community System Preservation (TCSP) earmark in the amount of $994,100 for the design and construction of the Campus Connector Road. This road starts from the intersection of VT 15 and Johnson Avenue in Colchester extending northeasterly approximately 3,000 feet to its intersection with Barnes Avenue in the former Fort Ethan Allen. This project shall appear as follows: Colchester Campus Road TCSP TCSE(007) – Design and Construction of Campus Road. (7) Funding for the Bennington Bypass South NHF 019-1(4) project within the development and evaluation program is reduced by $48,000 in transportation funds and $192,000 in federal funds. Funding for the project is authorized in Sec. 11 of this Act.

JOURNAL OF THE HOUSE 38 (8) (A) The schedule for Williston-Essex IR 089-2(12) & NH 033-1() project (hereafter the “Circ”) is modified as follows: FY05 As Proposed As Amended Change PE 0 ROW 0 Construction 21,933,930 0 -21,933,930 Other 0 0 0 Total 21,933,930 0 -21,933,930 Source of Funds State 4,386,786 0 -4,386,786 Federal 17,547,144 0 -17,547,144 Local 0 0 0 (B) The funds scheduled for expenditure on the project in fiscal year 2005 and any funds authorized for expenditure on the project in the prior fiscal year and unspent as of May 15, 2004 shall be reallocated in the following order of priority: (i) First, up to $3,700,000 for the Circ; (ii) Second, up to $6,600,000 for the Winooski downtown redevelopment project; (iii) Third, up to $3,000,000 for projects in the Chittenden County Metropolitan Planning Organization (CCMPO) area, as selected by the secretary in cooperation with the CCMPO; and (iv) Fourth, all remaining funds to shelf projects outside the CCMPO area or to accelerate projects outside the CCMPO area in the state’s fiscal year 2005 transportation capital program and project development plan in the paving and bridge programs as selected by the secretary. (C) The secretary of transportation shall submit by June 30, 2004 to the members of the House and Senate committees on transportation a list of the projects for FY04 and 05 to be funded and shall provide a two-week period for the committees to respond. * * * Bike and Pedestrian Facilities * * * Sec. 4. BIKE AND PEDESTRIAN FACILITIES The following modifications are made to the bike and pedestrian facilities program. (1) The schedule for the Royalton STP BIKE(40) project is amended to read: 39 THURSDAY, MAY 20, 2004 FY05 As Proposed As Amended Change PE 4,500 0 -4,500 ROW 0 Construction 0 Other 0 Total 4,500 0 -4,500 Source of Funds State 500 0 -500 Federal 4,000 0 -4,000 (2) The schedule for the Bennington STP WALK(13) project is amended to read: FY05 As Proposed As Amended Change PE 45,000 0 -45,000 ROW 0 Construction 0 Other 0 Total 45,000 0 -45,000 Source of Funds State 5,000 0 -5,000 Federal 40,000 0 -40,000 (3) Authorized spending for the development and evaluation of new projects in the bicycle and pedestrian facilities program is modified as follows: FY05 As Proposed As Amended Change Total 45,000 90,000 45,000 Source of Funds State 5,000 10,000 5,000 Federal 40,000 80,000 40,000 * * * Public Transit * * * Sec. 5. PUBLIC TRANSIT The following modifications are made to the public transit program. Federal surface transportation program funds in the amount of $150,000 are added to the public transit authorization to be used in the 49 U.S.C. § 5310 program. Funding for public transit is modified as follows: FY05 As Proposed As Amended Change PE 0 ROW 0

JOURNAL OF THE HOUSE 40 Construction 0 Other 9,367,432 9,517,432 150,000 Total 9,367,432 9,517,432 150,000 Source of Funds State 5,041,182 5,041,182 0 Federal 3,480,000 3,630,000 150,000 Local 846,250 846,250 0 * * * Town Highway Bridges * * * Sec. 6. TOWN HIGHWAY BRIDGE PROGRAM (a) Total authorized spending in the town highway bridge program is modified as follows: FY05 As Proposed As Amended Change Total 19,157,867 20,931,263 1,773,396 Source of Funds State 5,785,154 7,129,406 1,344,252 Federal 12,141,877 12,417,827 275,950 Local 1,230,836 1,384,030 153,194 (b) These changes are made to add $1,344,252 in transportation funds, $275,950 in federal funds, and $153,194 in local funds, to be allocated by the secretary to approved projects in the town highway bridge program in the fiscal year 2005 transportation capital program. * * * Rail Program * * * Sec. 7. RAIL PROGRAM (a) Total authorized spending in the rail program is modified as follows: FY05 As Proposed As Amended Change Total 11,850,236 10,670,236 -1,180,000 Source of Funds State 7,613,236 6,433,236 -1,180,000 Federal 4,237,000 4,237,000 0 Local 0 0 0 (b) These changes are made: (1) to reduce funding for passenger rail service by $700,000 in transportation funds to adjust authorized spending to anticipated contract obligations; and 41 THURSDAY, MAY 20, 2004 (2) to reduce funding for rail infrastructure projects by $500,000 in transportation funds. These funds are anticipated to be restored as provided in Sec. 56 of this act. To the extent the funds are not restored, the secretary is authorized to reduce spending on rail infrastructure projects as required. * * * Transportation Buildings Program * * * Sec. 8. TRANSPORTATION BUILDINGS PROGRAM The following modifications are made to the transportation buildings program: (1) The schedule for Ferrisburgh Maintenance and DMV Facility, page 6, is amended to read: FY05 As Proposed As Amended Change PE 4,000 4,000 0 ROW 0 Construction 500,000 220,000 -280,000 Other 0 Total 504,000 224,000 -280,000 Source of Funds State 504,000 224,000 -280,000 Federal 0 Local 0 (2) Funding for the Bridport Shared Facility project is added to read: FY05 As Proposed As Amended Change PE 0 ROW 0 Construction 280,000 280,000 Other 0 Total 280,000 280,000 Source of Funds State 280,000 280,000 Federal 0 Local 0 * * * Policy and Planning * * * Sec. 9. POLICY AND PLANNING (a) Total authorized spending in the policy and planning program is modified as follows:

JOURNAL OF THE HOUSE 42 FY05 Proposed As Amended Change Personal Services 3,260,021 3,185,021 -75,000 Operating Expenses 504,783 504,783 0 Grants 4,080,769 4,130,769 50,000 Total 7,845,573 7,820,573 -25,000 Source of Funds State 1,707,221 1,742,221 35,000 Federal 6,138,352 6,078,352 -60,000 (b) These changes are made: (1) to reduce funding of personal services and operating expenses by $15,000 in transportation funds and $60,000 in federal funds, the reductions to be made at the discretion of the secretary; (2) to fund the youth corps program with $200,000 of federal enhancement funds in lieu of $200,000 of other federal funds; and (3) to add $50,000 in transportation funds to fund the grant to the Northwest Regional Planning Commission provided for in Sec. 28 of this act. * * * Additional Federal Funds * * * Sec. 10. ADDITIONAL FEDERAL FUNDS (a) To the extent federal funds become available beyond the funds authorized in fiscal year 2005 in the state’s transportation capital program and project development plan, the secretary is authorized to use such funds, consistent with federal rules, in the following order of priority: (1) First, subject to the requirements of 19 V.S.A. § 10h(a), to cover cash flow shortages on projects due to increased costs or faster than anticipated progress. (2) Second, to shelf projects or to accelerate projects in the state’s fiscal year 2005 transportation capital program and project development plan in the paving and bridge programs. (3) Third, to accelerate other projects in the state’s transportation capital program and project development plan. * * * Bennington Bypass * * * Sec. 11. BENNINGTON BYPASS Sec. 12 of No. 64 of the Acts of 2001 as amended by Sec. 27 of No. 56 of the Acts of 2003 is amended to read: Sec. 12. BENNINGTON BYPASS 43 THURSDAY, MAY 20, 2004 The agency of transportation is directed to complete the conceptual design of highway project Bennington Bypass South NHF 019 1(4). The agency shall not incur expenditures for conceptual design in excess of $200,000.00 in any fiscal year for the Bennington Bypass South project. Right of way for this project shall not be acquired without the approval of the general assembly. All design activity on the Bennington Bypass North project south of Route 9 shall be postponed until approved by the general assembly. (a) Activity on the Bennington Bypass South NHF 019-1(4) and the Bennington Bypass North NHF 019-1(5) project south of Vermont Route 9 shall be for: (1) design work necessary to identify sites for the cost - effective disposal of earth borrow resulting from the construction of the Bennington Bypass North project north of Vermont Route 9; (2) the acquisition of earth borrow sites so identified; and (3) the acquisition of right-of-way qualifying as hardship under federal rules. (b) In fiscal year 2005, the expenditure of up to $450,000, consisting of $250,000 authorized in and notwithstanding Sec. 28 of No. 56 of the Acts of 2003 and $200,000 in fiscal year 2005 funds, is authorized for the purposes specified in subsection (a) of this section. * * * Cancellation of Projects * * * Sec. 12. CANCELLATION OF PROJECTS Pursuant to 19 V.S.A. § 10g(f) (legislative approval for cancellation of projects), the general assembly approves cancellation of the following projects: (1) program development – bike and pedestrian facilities program: (A) Royalton STP BIKE (40); (2) program development – roadway program: (A) Morgan STP TA02(11). * * * State Highway System * * * Sec. 13. DELETIONS TO STATE HIGHWAY SYSTEM Pursuant to 19 V.S.A. § 15(2), approval is granted for the secretary of transportation to enter into an agreement with the town of Newport to relinquish to the town’s jurisdiction a segment of Vermont Route 100, approximately 800 feet in length, between approximate mile markers 3.12 and

JOURNAL OF THE HOUSE 44 3.27, which is located between the intersection of Vermont Route 100 with Vermont Route 14 and Vermont Route 14 approach. * * * Central Garage * * * Sec. 14. CENTRAL GARAGE FUND Notwithstanding 19 V.S.A. § 13(c), in fiscal year 2005, the requirement to transfer an amount equal to one percent of the prior year’s transportation fund appropriation to the central garage fund shall be suspended. Sec. 15. CENTRAL GARAGE EQUIPMENT REPLACEMENT PROGRAM The agency of transportation in cooperation with the department of finance and management and the joint fiscal office shall analyze the performance and status of the central garage equipment replacement program. The objective of this program is to establish an annual budget system that adequately and efficiently accounts and provides for the present and future equipment replacement needs of the agency. The agency shall submit a report along with its recommendations regarding the program to the members of the House and Senate committees on transportation by January 15, 2005. * * * Transportation Fund Support for General Government * * * Sec. 16. 19 V.S.A. § 11a is amended to read: § 11a. TRANSPORTATION FUNDS APPROPRIATED FOR SUPPORT OF GOVERNMENT The For fiscal year 2006 and thereafter, the maximum amount of transportation funds that may be appropriated for the support of government, other than for the agency of transportation, transportation pay act funds, the cost of maintaining and staffing rest areas, construction of transportation capital facilities used by the agency of transportation, and transportation debt service, shall not exceed 19 18.5 percent of the total of the prior fiscal year transportation fund appropriations. Sec. 17. CONDITION TO ADJUSTMENT OF TRANSPORTATION FUNDS USED FOR SUPPORT OF GOVERNMENT Section 16 of this act shall take effect provided that, at the July 2004 or January 2005 emergency board meetings pursuant to 32 V.S.A. § 305a, the official fiscal year 2006 available general fund revenue forecast is increased by at least one percent from the official forecast adopted in January 2004. * * * Town Highway Programs * * * Sec. 18. 19 V.S.A. § 306(e) and (h) are amended to read: 45 THURSDAY, MAY 20, 2004 (e) State aid for town highway structures. There shall be an annual appropriation for grants to municipalities for maintenance, including actions to extend life expectancy, and construction of bridges, culverts, and other structures, including causeways and retaining walls, intended to preserve the integrity of the traveled portion of class 1, 2, and 3 town highways. The appropriation shall be allocated by the secretary after consideration of applications submitted by the towns. Each fiscal year, the agency shall approve qualifying projects with a total estimated state share cost of $3,490,000.00 at a minimum as new grants. The agency’s proposed appropriation for the program shall take into account the estimated amount of qualifying invoices submitted to the agency with respect to project grants approved in prior years but not yet completed as well as with respect to new project grants to be approved in the fiscal year. In a given fiscal year, should expenditures in the town highway structures program exceed the amount appropriated, the agency shall advise the governor of the need to request a supplemental appropriation from the general assembly to fund the additional project cost, provided that the agency has previously committed to completing those projects. (h) Class 2 town highway roadway program. There shall be an annual appropriation for grants to municipalities for resurfacing, rehabilitation, or reconstruction of paved or unpaved class 2 town highways. The appropriation shall be allocated by the secretary after consideration of applications submitted by the towns Each fiscal year, the agency shall approve qualifying projects with a total estimated state share cost of $4,240,000.00 at a minimum as new grants. The agency’s proposed appropriation for the program shall take into account the estimated amount of qualifying invoices submitted to the agency with respect to project grants approved in prior years but not yet completed as well as with respect to new project grants to be approved in the fiscal year. In a given fiscal year, should expenditures in the town highway class 2 roadway program exceed the amount appropriated, the agency shall advise the governor of the need to request a supplemental appropriation from the general assembly to fund the additional project cost, provided that the agency has previously committed to completing those projects. * * * Transportation Bonding * * * Sec. 19. GENERAL OBLIGATION BONDS (a) Subject to subsection (b) of this section, the state treasurer, with the approval of the governor, is authorized to issue general obligation bonds in the amount of $1 million for the purpose of funding the appropriations of Sec. 20 of this act.

JOURNAL OF THE HOUSE 46 (b) The state treasurer, with the approval of the governor, shall determine the appropriate form and maturity of the bonds authorized by this section consistent with the underlying nature of the appropriation to be funded. (c) The state treasurer shall allocate the estimated cost of bond issuance or issuances to the entities to which funds are appropriated pursuant to this section and for which bonding is required as the source of funds pursuant to 32 V.S.A. § 954. (d) It is the intent of the general assembly that future debt service for bonds authorized by this section shall be paid from the transportation fund. Sec. 20. TRANSPORTATION BONDS; APPROPRIATION OF BOND PROCEEDS The sum of $1 million is appropriated to the agency from the bond revenue generated in Sec. 19 of this act, and the secretary shall allocate the funds to the Alburg-Swanton BRF 036-1(1) project (VT 78, replacement of Bridge No. 2 over Missisquoi Bay of Lake Champlain), to defray part of the state share of right - of-way and construction costs: 1,000,000.00 Sec. 21. TRANSFER OF FUNDS; APPROPRIATED BOND FUNDS The secretary of transportation, with the approval of the secretary of administration, may transfer any unexpended funds appropriated under Sec. 20 of this act to other approved projects in the fiscal year 2005 transportation capital program. Sec. 22. AVAILABILITY OF BOND PROCEEDS The sums appropriated and the spending authority authorized by Secs. 19 through 21 of this act shall be continuing and shall not revert at the end of the fiscal year. * * * Railroads * * * Sec. 23. APPROVAL OF TRANSACTIONS REGARDING STATE-OWNED RAILROAD PROPERTY Upon receiving satisfactory evidence of release of any interest of the Washington County Railroad Company, the secretary of transportation, as agent for the state of Vermont, is authorized to convey to the Vermont Economic Development Authority (VEDA), in consideration of $1.00, a parcel of land in the city of Montpelier between Stone Cutters Way and the Winooski River. This parcel of land, sometimes known as 575 Stone Cutters Way or the “salt shed property,” shall be conveyed subject to a December 16, 1999 lease, as amended, between the State of Vermont, Agency of Transportation, joined by Washington County Railroad Company and the Pyralisk Arts Center, Inc. 47 THURSDAY, MAY 20, 2004 The state’s interest in the existing Pyralisk lease shall be assigned to VEDA. The secretary, in his or her discretion, may adjust the boundaries of the land to be conveyed to VEDA to accommodate the building plans of VEDA and Pyralisk. VEDA shall be responsible for obtaining any necessary survey and subdivision approvals. * * * Authority to Accept Donation of Land * * * Sec. 24. AUTHORITY TO ACCEPT DONATION OF LAND The secretary of transportation, as agent for the state of Vermont, is authorized to accept donation of approximately 0.5 acre of land, in the town of Dover, which is located on the easterly side of VT 100. The subject parcel, which is designated as #RT014 on the town of Dover tax map, is described in a March 30, 1992 decree of distribution from the estate of Elizabeth B. Forrest to John B. Forrest, Jr., Donald B. Forrest, and Patricia F. Collins, which is recorded in book 198, page 304 of the Dover land records. * * * Transportation Infrastructure Study Committee * * * Sec. 25. TRANSPORTATION INFRASTRUCTURE STUDY (a) The Vermont Transportation Infrastructure Funding Working Group is established to prepare a report to the general assembly that examines: (1) all alternatives to future funding opportunities, including, but not limited to, debt instruments such as general obligation bonds and Grant Anticipation Revenue Vehicles (GARVEE bonds); and (2) all alternative measures for closing the existing gap between the present and future costs of the state’s commitments to transportation projects and programs and the present and future level of resources projected to be available to meet such commitments to ensure that the state’s commitments and resources remain in balance on a consistent and fiscally conservative basis. (b) The working group shall be composed of the following ten members or their designees: the secretary of administration, to serve as chair; the state treasurer; the secretary of transportation; two members of the Senate appointed by the committee on committees and two members of the House appointed by the speaker; the governor’s appointee to the capital debt affordability advisory committee; and two members from the private sector appointed by the governor, one with a background in transportation and the other in finance. The committee is authorized to hold up to five meetings, at which point it is terminated. Legislative members of the committee shall be entitled to per diem compensation and expense reimbursement as provided in 2 V.S.A. § 406(a).

JOURNAL OF THE HOUSE 48 (c) Administrative support shall be provided by the agency of transportation, the legislative council, and the joint fiscal office with advice from the state's financial advisor. (d) The working group shall report its findings and conclusions to the governor, the speaker of the house and the president pro tempore of the senate, and the members of the House and Senate committees on transportation no later than January 15, 2005. * * * Maintenance - Smart Carts * * * Sec. 26. MAINTENANCE Total authorized spending in the maintenance program is increased by the sum of $45,000 in transportation funds for the purchase of up to nine vehicle speed indicator smart carts which shall be distributed for use by the maintenance districts. The maintenance districts shall cooperate with municipalities to allow use of the carts at municipal project sites. The agency shall submit a report to the House and Senate committees on transportation by January 15, 2005 on the use of the smart carts by the maintenance districts and municipalities. * * * Use of Discarded Tires by Agency of Transportation * * * Sec. 27. AGENCY OF TRANSPORTATION USES FOR DISCARDED TIRES A study group consisting of the secretary of transportation or designee, the secretary of natural resources or designee, and, to be appointed by the governor, a person in the business of selling tires, a person in the business of shredding tires, the chief executive officer of a solid waste district, and a representative of the American Council of Engineering Consultants shall investigate possible cost - effective uses by the agency of transportation for shredded tires. The agency of transportation shall identify a project for construction in the state fiscal year 2006 or 2007 in which shredded tires can be incorporated in a cost - effective manner. The agency of transportation shall provide administrative support for the study group and shall report by January 15, 2005 to the House and Senate committees on transportation on the feasibility of institutionalizing these practices in the development of Vermont’s projects. * * * N.W. Regional Planning Commission; Federal Street Extension * * * Sec. 28. ST. ALBANS FEDERAL STREET EXTENSION Notwithstanding 19 V.S.A. § 10j(e), the sum of $50,000 of transportation funds is authorized for the Northwest Regional Planning Commission to 49 THURSDAY, MAY 20, 2004 augment the Federal Street Extension scoping study done by the commission in 1995 to include additional intermodal connections for freight and passenger transportation and for engineering in preparation for construction of the extension from the St. Albans state highway to Federal Street. * * * Enhancement Grant Program * * * Sec. 29. 19 V.S.A. § 38(e) is amended to read: § 38. TRANSPORTATION ENHANCEMENT GRANT PROGRAM * * * (e)(1) For each fiscal year starting with fiscal year 2005, the state’s enhancement grant program for the fiscal year shall be at the discretion of the secretary: (A) at a minimum, four percent of the adjusted amount ascertained by the agency under subdivision (d)(1) of this section; and (B) at a maximum, the adjusted amount ascertained by the agency under subdivision (d)(2) of this section. (2) The agency shall plan its budget accordingly and advise the general assembly in its recommended budget of the amount of the enhancement grant program: (A) if sufficient information is available to determine a sum certain, of the amount of the enhancement grant program; or (B) if sufficient information is not available to determine a sum certain, of the range within which the agency estimates the size of the enhancement grant program will be. * * * Transportation Budget Structure * * * Sec. 30. 19 V.S.A. § 10g is amended to read: § 10g. ANNUAL REPORT; TRANSPORTATION CAPITAL PROGRAM; PROJECT DEVELOPMENT PLAN; ADVANCEMENTS, CANCELLATIONS, AND DELAYS (a) The agency of transportation’s project activities and expenditures in implementing the one-year transportation capital program shall, except for subsection (f) of this section, adhere to the one-year transportation capital program as set forth by the general assembly, transportation shall annually present to the general assembly a multiyear transportation program covering the same number of years as the statewide transportation improvement plan (STIP), consisting of the recommended budget for all agency activities for the ensuing fiscal year and projected spending levels for all agency activities for

JOURNAL OF THE HOUSE 50 the following fiscal years. The program shall include a description and year - by - year breakdown of recommended and projected funding of all projects proposed to be funded within the time period of the STIP and, in addition, a description of all projects which are not recommended for funding in the first fiscal year of the proposed program but which are projected to be ready for construction at that time (shelf projects). The program shall be consistent with the planning process established by Act No. 200 of the Acts of 1988 (1987 Adjourned Session), as codified in 3 V.S.A. chapter 67 and 24 V.S.A. chapter 117, the statements of policy set forth in sections 10b-10f of this title, and the long-range systems plan, corridor studies, and project priorities developed through the capital planning process under section 10i of this title. (b) Projected spending in future fiscal years shall be based on revenue estimates as follows: (1) with respect to state funds, on the consensus forecast for transportation fund revenue adopted pursuant to 32 V.S.A. § 305a and for later years on other consensus or executive branch estimates of transportation fund revenues; and (2) with respect to federal funds, on such federal regulations that apply to the development of the statewide transportation improvement plan (STIP). (b)(c) The agency shall prepare a project development plan which assists the general assembly in the establishment of the state’s transportation activities over the second through fifth years following the period covered by the one-year transportation capital program. The program proposed by the agency shall include systemwide indicators developed by the agency to describe the condition of the Vermont transportation network. The program shall discuss the background and utility of the indicators, track the indicators over time, and, where appropriate, recommend the setting of targets for the indicators. (c) The agency shall develop a program for implementing an infrastructure preservation plan which contains performance levels, goals, activities and their costs in the transportation capital program and project development plan. (d)(1) In addition to the multiyear transportation program described in subsection (a) of this section, the agency shall annually present to the general assembly an analysis of the balance between the state’s commitments to transportation projects and total available resources for projects over the ten - year period commencing with the fiscal year of the transportation program. The analysis shall include, on a current dollar basis, an estimate of the total remaining cost of all projects in construction, development, and evaluation or candidate status in the agency’s proposed multiyear transportation program, including individual estimates and projected schedules for all projects with a 51 THURSDAY, MAY 20, 2004 total project cost estimate in excess of $10 million, and an estimate, on a current dollar basis, of the total resources projected to be available to cover project expenses during the ten - year period. (2) The projection of available resources called for in subdivision (1) of this subsection shall be determined in the following manner. Total appropriations to the agency exclusive of internal service funds for each of the five previous fiscal years shall be determined. From that total for each fiscal year shall be deducted appropriations for annual programs and other noncapital project agency activities. Appropriations for administration, overhead, and other ongoing agency functions required for the support of capital project activities shall be apportioned on a reasonable basis and added back to the total which shall represent the total of appropriations for and in support of the agency’s capital project activities for that fiscal year. The resulting appropriations totals of capital project - related appropriations shall be adjusted for inflation in a procedure approved by the joint fiscal committee. The resulting inflation adjusted figures for the five previous fiscal years shall be averaged, and the average multiplied by ten shall be used as the estimate of the total resources projected to be available to cover project expenses during the ten - year period. (3) To the extent the estimate of remaining costs exceeds the estimate of available resources, the agency shall submit to the general assembly a plan to bring costs and resources into balance. The plan shall include recommendations regarding the scheduling, suspension, or cancellation of projects, cost saving initiatives, revenue raising initiatives, and other organizational, project design, project execution, or financial measures or initiatives which shall ensure that the state’s commitments will be adequately and realistically funded. (e) In addition to the multiyear transportation program described in subsection (a) of this section, the agency shall annually present to the general assembly a description of all projects with respect to which: (1) the total project cost estimate exceeds $5,000,000; (2) federal funds are proposed to be used to cover a portion of the project costs; and (3) approval of the proposed activity and expenditure of federal funds on the project would expose the state to potential liability to reimburse the federal government in the event the project is subsequently cancelled. (d)(f) Each year following enactment of a transportation capital program under this section, the agency shall prepare and make available to the public the one-year transportation capital program and four-year project development

JOURNAL OF THE HOUSE 52 plan established by the general assembly. The resulting document shall be entered in the permanent records of the agency and of the board, and shall constitute the state’s official transportation construction program and project development plan. (e)(g) Each year after a transportation capital program as provided by this section has been enacted and before November 1, the agency shall participate in five or more public hearings, during preparation of the transportation program, the agency shall hold five meetings in partnership with Vermont’s regional planning commissions and shall hold at least one statewide hearing, providing an opportunity for input from different areas of the state, to receive public comments regarding the one-year transportation capital program under subsection (a) of this section enacted by the last session of the general assembly, and the corresponding anticipated four-year capital development program under subsection (b) of this section which is proposed by the agency, both programs to be presented in the context of the long-range systems plan as provided by section 10i of this title. The agency shall provide the board with advance notice of each public hearing and the opportunity for board members to attend overall transportation program. The meetings may be part of regularly scheduled meetings of the regional planning commissions and shall include discussion of the general trends and direction of the transportation program, progress in management of transportation assets, aspects of specific transportation projects in the geographic area of the region, and other topics as appropriate. A record of the hearing or hearings meetings, including any recommendations and comments, shall be prepared by the agency of transportation and submitted to the house and senate committees on transportation and used by the agency for future use in its preparation of transportation capital program proposals. (f)(h) Should capital projects in the capital transportation program for the current fiscal year be delayed because of unanticipated problems with permitting, right-of-way acquisition, construction, local concern, or availability of federal or state funds, the secretary is authorized to advance projects in the approved capital transportation program and project development plan, giving priority to shelf projects. The secretary is further authorized to undertake projects to resolve emergency or safety issues. Should an approved project in the current transportation capital program require additional funding to maintain the approved schedule as outlined in the one-year capital program, the agency is authorized to allocate the necessary resources. With respect to projects in the approved transportation program, the secretary shall notify, in the district affected, the regional planning commission, the municipality, legislators, and members of the senate and house committees on transportation 53 THURSDAY, MAY 20, 2004 of any significant change project schedules in the approved one-year capital program in design, change in construction cost estimates requiring referral to the transportation board under 19 V.S.A. § 10h, or any change which likely will affect the fiscal year in which the project is planned to go to construction. No project shall be cancelled without the approval of the general assembly. (g)(i) For the purpose of enabling the state, without delay, to take advantage of economic development proposals that increase jobs for Vermonters, a transportation project certified by the governor as essential to the economic infrastructure of the state economy, or a local economy, may be approved for construction by a committee comprised of the joint fiscal committee meeting with the chairs of the transportation committees, or their designees without explicit project authorization through an enacted transportation capital program and project development plan, in the event that such authorization is otherwise required by law. (h)(j) The agency of transportation, in coordination with the agency of natural resources and the division for historic preservation, shall prepare and implement a plan for advancing approved projects contained in the one-year capital approved transportation program. The plan shall include the assignment of a project manager from the agency of transportation for each project. Additionally, the The agency of transportation, the agency of natural resources, and the division for historic preservation shall set forth provisions for expediting the permitting process and establishing a means for evaluating each project during concept design planning if more than one agency is involved to determine whether it should be advanced or deleted from the program. (i)(k) In implementing the project manager system, the agency shall include, but not be limited to, use of critical path techniques. For purposes of subsection (h) of this section, “emergency or safety issues” shall mean: (1) serious damage to a transportation facility caused by a natural disaster over a wide area, such as a flood, hurricane, earthquake, severe storm, or landslide; or (2) catastrophic or imminent catastrophic failure of a transportation facility from any cause; or (3) any condition identified by the secretary as hazardous to the traveling public; or (4) any condition evidenced by fatalities or a high incidence of crashes.

JOURNAL OF THE HOUSE 54 Sec. 31. 19 V.S.A. § 10i is amended to read: § 10i. TRANSPORTATION PLANNING PROCESS (a) Long-range systems plan. The agency shall establish and implement a planning process through the adoption of a long-range multi-modal systems plan integrating all modes of transportation. The long-range multi-modal systems plan shall be based upon agency transportation policy developed under section 10b of this title, other policies approved by the legislature, agency goals, mission, and objectives, and demographic and travel forecasts, design standards, performance criteria, and funding availability. The long-range systems plan shall be developed with participation of the public, local, and regional governmental entities, and pursuant to the planning goals and processes set forth in Act No. 200 of the Acts of 1988. (b) Corridor studies. The agency shall develop transportation corridor studies for the highway mode identifying as needed, consistent with asset management policies implemented by the agency, which identify environmental issues, community concerns, and travel projections. For each corridor, problems shall be identified and ranked according to their criticality and severity. (c) Transportation program. The transportation program shall be developed in a fiscally responsible manner to accomplish the following objectives: (1) Managing, maintaining and improving the state’s existing transportation infrastructure to provide capacity, safety, and flexibility in the most cost - effective and efficient manner. (2) Developing an integrated transportation system that provides Vermonters with transportation choices. (3) Strengthening the economy, protecting the quality of the natural environment, and improving Vermonters’ quality of life. (c)(d) Project identification and scope. The agency shall identify and develop specific projects pursuant to corridor studies consistent with the objectives set forth in subsection (c) of this section. For each project, a project scope shall be prepared to identify the problem to be resolved by the project, the preferred alternative, project limits, its conceptual design and estimated costs. The projects developed according to corridor studies shall be placed in one of the following four program categories: (1) System preservation: maintenance of the physical integrity of the existing state transportation system, including the upgrade of design for safety and operational reasons. 55 THURSDAY, MAY 20, 2004 (2) System management: improvements in the movement of people and goods along existing corridors through minor investment and with minimal impact or right-of-way acquisition. (3) New capacity: expansion of capacity through the addition of through lanes; construction on new alignment or new interchanges or ramps. (4) Local aid: provision of projects and enhancement of local transportation networks. (d) Project priorities. Priorities for projects in each program category established under subsection (c) of this section shall be established based upon selection criteria adopted by the agency. (e) Information manual. An information manual giving a clear description of the planning process shall be prepared for town officials and the public. Sec. 32. 19 V.S.A. § 10k(a) is amended to read: (a) The agency shall develop an asset management plan which is a systematic goal and performance-driven management and decision-making process of operating, maintaining, and upgrading transportation assets cost-effectively. At a minimum, the asset management system shall: (1) identify transportation system indicators by which the different components of the transportation system may be evaluated; (1)(2) list all of the infrastructure assets and their condition, including, but not limited to, pavements, structures, and facilities; (2) [repealed]

(3) include deterioration rates for infrastructure assets; and (4) determine, long-term, the annual funds necessary to fund infrastructure maintenance at the recommended performance level. Sec. 33. 19 V.S.A. § 12a is amended to read: § 12a. TRANSPORTATION BUDGETS PROGRAM PROVIDED TO THE COMMITTEES ON TRANSPORTATION (a) The budget for fiscal year 1991 and for each fiscal year thereafter for the agency of transportation and for all transportation expenditures shall be arranged and classified so as to show separately the following estimates and recommendations: (1) An operations and administration budget, including (A) expenses of administration, operations and personal services;

JOURNAL OF THE HOUSE 56 (B) deficiencies, overdrafts and unexpended balances in appropriations of former years; and (C) all receipts including federal, town and special receipts. (2) A capital budget including (A) all requests and proposals for expenditures for new projects, new construction, additions and other capital outlay; (B) bonded debt, loans and interest charges; and (C) all receipts including federal, town and special receipts. (b) The transportation capital program and budget request shall be presented to the general assembly each year in a single document including complete project and expenditure information. A four-year project development plan with estimated project costs shall accompany the transportation capital program request and contain information for planning purposes only. Appropriations made by the general assembly shall be for the ensuing fiscal year only. (c) On or before December 31 of each year, the agency shall also present to the house and senate committees on transportation information on the corridor planning process and a summary of resources allocated to programs in the process according to the four programs established under subsection 10i(c) of this title. The transportation program shall be provided by the agency of transportation to the members of the house and senate committees on transportation following the presentation of the state budget to the general assembly by the governor as required by 32 V.S.A. § 306. * * * Information Center Funding * * * Sec. 34. STUDY OF INFORMATION CENTER FUNDING The department of buildings and general services, in cooperation with the agency of transportation and the agency of commerce and community development, shall analyze the capital construction and operations costs of the state’s information centers with respect to their intended functions for, on the one hand, the provision of facilities for the comfort and safety of the traveling public and, on the other hand, the promotion of local and statewide tourist, cultural, and business activities. The purpose of the analysis shall be to determine what proportion of the capital and operating costs of the information centers in fiscal years 2006 and thereafter should appropriately be funded from the transportation fund, the general fund, or other funding mechanisms. The department of buildings and general services shall report its findings and 57 THURSDAY, MAY 20, 2004 recommendations to the House and Senate committees on transportation and appropriations by January 15, 2005. * * * Vermont Local Roads Program * * * Sec. 35. MANAGEMENT OF VERMONT LOCAL ROADS PROGRAM The agency of transportation, in cooperation with all interested parties, shall investigate the advantages and disadvantages of various models for operating the Vermont Local Roads Program, including the present model, education institutions with civil engineering departments, the agency of transportation, and others. The agency shall report its findings and recommendations to the House and Senate committees on transportation by January 15, 2005. * * * Materials Testing Laboratory * * * Sec. 36. MATERIALS TESTING FUNCTIONS The agency shall analyze alternative models for organizing and performing the agency’s materials testing functions, including outsourcing contracts for all or part of the materials functions to private or public sector entities and other collaborative ventures with private and public sector entities, including municipalities and educational institutions. The agency shall deliver the report to the governor and to members of the House and Senate committees on transportation by January 15, 2005. * * * Investigations of DMV Employees and Potential Employees * * * Sec. 37. 23 V.S.A. § 102(d) is added to read: (d) The commissioner may authorize background investigations for potential employees that may include criminal, traffic, and financial records checks; provided, however, that the potential employee is notified and has the right to withdraw his or her name from application. The commissioner may, in connection with a formal disciplinary investigation, authorize an appropriate background investigation of a current employee; provided, however, that the background review is necessary and relevant to the issue under disciplinary investigation. Information acquired through a background investigation that may be used as a basis for any disciplinary action must be given to the employee during any pretermination hearing or contractual grievance hearing to allow the employee an opportunity to respond to or dispute the information. * * * Operation of Bicycles on Bike Paths * * * Sec. 38. REPEAL 23 V.S.A. § 1139(c) (requirement for using bike paths) is repealed.

JOURNAL OF THE HOUSE 58 * * * School Bus Inspections * * * Sec. 39. 23 V.S.A. § 1282(b) is amended to read: (b) A school bus shall not be operated in the transportation of children to and from school unless and until it is inspected at an inspection station designated as such by the motor vehicle department. Such The inspection shall thoroughly cover mechanical conditions, standard equipment, extra equipment and safety and comfort conditions all as provided in section 1281 of this title; and, if the inspected vehicle meets all such of these requirements, the inspection station shall give the owner or operator of the inspected vehicle a signed certificate so stating. This certificate shall be forthwith exhibited shown as soon as possible by such the owner or operator to a school director in the town in which this vehicle is to be operated, and shall thereafter be carried in some easily accessible place in such the vehicle. Thereafter, so long as this bus remains in this service, it must be reinspected as provided above in this section during each of the following periods: August July-August, December November-December, and March February-March. School buses of the pleasure car type, if regularly used in such this service, when transporting school children shall display signs required in section 1281, subdivision (9) subdivision 1281(9) of this title when transporting schoolchildren. * * * Montpelier-Berlin Walk Project * * * Sec. 40. MONTPELIER-BERLIN WALK When the Montpelier-Berlin walk project is ready for construction, the agency of transportation shall prioritize funding for the project within the limits of total funding allocated to the bicycle and pedestrian facilities program. * * * Morse Airport in Town of Bennington * * * Sec. 41. WILLIAM H. MORSE STATE AIRPORT IN TOWN OF BENNINGTON; RUNWAY EXTENSION; COST-BENEFIT ANALYSIS The agency of transportation shall suspend all activity on the project for the proposed runway extension at the William H. Morse state airport in the town of Bennington until the town of Bennington and the Bennington County Regional Planning Commission adopt resolutions supporting the proposed extension of the runway. The Bennington County Regional Planning Commission in cooperation with the town of Bennington shall perform a cost - benefit analysis of the runway extension project that considers the economic benefits to and impacts on the residents in the vicinity of the airport and the residents of Old Bennington and Bennington’s West End. A grant to 59 THURSDAY, MAY 20, 2004 the Bennington County Regional Planning Commission in the amount of $10,000 from the aviation program is authorized for this purpose. * * * Rutland Rail Yard * * * Sec. 42. Sec. 4(4) of No. 141 of the Acts of the 2001 Adj. Sess. (2002) is amended to read: (4) The schedule for the rail statewide development and evaluation project, page 13, is amended as follows: by deleting other and total funds of $1,975,000 and inserting in both instances $2,230,030, and by deleting state funds of $475,000 and inserting $730,030. The changes are to increase state funding for the Rutland Rail Yard project by $400,000 ($150,000 for the purpose of completing the Act 250 process and $250,000 for the engineering contract), and to decrease $144,970 in state funds for other projects. * * * Program Development * * * Sec. 43. PROGRAM DEVELOPMENT Total authorized spending in program development is reduced by the sum of $400,000 in transportation funds. These funds are anticipated to be restored as provided in Sec. 56 of this act. To the extent the funds are not restored, the secretary is authorized to reduce spending on program development projects as required. * * * Surplus Real Property * * * Sec. 44. DISPOSAL OF SURPLUS REAL PROPERTY The agency of transportation shall implement a program to dispose of surplus real property owned in fee by the agency on behalf of the state within the course of fiscal years 2005 and 2006. The agency shall submit a report on its progress in this regard to the House and Senate committees on transportation by January 15, 2005. * * * Municipal Salt Sheds * * * Sec. 45. 19 V.S.A. § 39 is added to read: § 39. AGENCY OF TRANSPORTATION ASSISTANCE WITH MUNICIPAL SALT SHEDS (a) The agency of transportation shall work with municipalities to provide assistance in designing effective low cost enclosures for salt or sand storage, including off-the-shelf designs that incorporate economical construction materials to the extent allowed by the multisector general permit (MSGP) issued for Vermont by the United States Environmental Protection Agency.

JOURNAL OF THE HOUSE 60 (b) The agency shall explore opportunities for collocation of state and municipal salt or sand storage facilities where collocation would be appropriate. (c) The agency of transportation shall pursue requests for bid for bulk purchases of prototype salt and sand enclosures which would be available to municipalities for purchase. * * * Enhancement Funds * * * Sec. 46. ENHANCEMENT FUNDS Notwithstanding 19 V.S.A. § 38, the first $341,733 of federal funds allocated to the enhancement grant program for fiscal year 2005 under 19 V.S.A. § 38(e)(1) shall be applied as follows: (1) $200,000 to policy and planning for the youth corps program as provided in Sec. 9(b)(2) of this act; (2) $40,000 to the bicycle and pedestrian facilities program; and (3) $101,733 to the Vermont local roads program for the clean and clear initiative. The enhancement funds shall be used in lieu of transportation and bond funds which are reduced accordingly. * * * Aviation – Fixed-Base Operators * * * Sec. 47. GRANTS TO AIRPORT FIXED-BASE OPERATORS Within the limits of annual funds authorized for such purpose, the secretary may make grants to fixed-base operators at state airports for the purpose of defraying the expenses of providing an airport manager and other services to the public. * * * Recreational Trail System * * * Sec. 48. STUDY OF RECREATIONAL TRAIL SYSTEM The agency of natural resources shall conduct a review of previously completed reports regarding the state’s snowmobile trails system. The review shall list all recommendations made in the previous studies and assess the progress made to implement them. The agency of natural resources shall forward its review to the members of the House and Senate committees on transportation by January 15, 2005. * * * Central Vermont Public Transit * * * Sec. 49. Sec. 45(a)(1) of No. 56 of the Acts of 2003 is amended to read: 61 THURSDAY, MAY 20, 2004 (a) There is established a Central Vermont Public Transit Advisory Board consisting of: (1) an elected official or designee from each municipality in Washington County and from the towns of Orange, Washington, and Williamstown, to be selected by the legislative body of each municipality; and * * * Repeal of Agency of Transportation Reports * * * Sec. 50. REPEAL The following provisions of law are repealed: (1) 19 V.S.A. § 12a(c) (corridor planning process and resources allocated to programs in the process); (2) 19 V.S.A. § 13(g) (report detailing transportation equipment replacement account); and (3) 24 V.S.A. § 5084(e) (report of public transit advisory council). Sec. 51. 19 V.S.A. § 306(d) is amended to read: (d) State aid for nonfederal disasters. There shall be an annual appropriation for emergency aid in repairing, building, or rebuilding class 1, 2, or 3 town highways and bridges damaged by natural or man-made disasters. The secretary of transportation shall file an annual report with the house and senate committees on transportation, detailing the expenditure of funds under this subsection. Eligibility for use of emergency aid under this appropriation shall be subject to the following criteria: * * * Sec. 52. 23 V.S.A. § 1436 is amended to read: § 1436. STATEWIDE MUNICIPAL COMMERCIAL MOTOR VEHICLE ENFORCEMENT FUND A statewide municipal commercial motor vehicle enforcement fund is created for the purpose of supporting commercial motor vehicle law enforcement initiatives in the state. The fund shall be administered by the commissioner of motor vehicles. Municipalities may apply to the commissioner on forms supplied by the department of motor vehicles. Funds distributed to municipalities, which shall not exceed $12,000.00 annually per municipality under this section, shall be used for training of municipal law enforcement officers for commercial motor vehicle enforcement, temporary replacement officers for those municipal law enforcement officers receiving commercial motor vehicle enforcement training, and other municipal commercial motor vehicle enforcement uses as determined by the

JOURNAL OF THE HOUSE 62 commissioner. The commissioner shall ensure that the activities of the commercial motor vehicle law enforcement initiative are consistent with those of the enforcement plan produced pursuant to section 1435 of this title. The commissioner shall report annually to the general assembly on or before the second week of January on the expenditures from and activities of the statewide municipal commercial motor vehicles enforcement fund. Sec. 53. 29 V.S.A. § 735(a) is amended to read: (a) On or before the last day of January in each year the authority shall submit a report of its activities for the preceding fiscal year to the governor and to the general assembly. Each report shall set forth a complete operating and financial statement covering its operations during the year, and shall contain a full and complete statement of the authority's anticipated budget and operations for the ensuing year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants; the cost shall be considered an expense of the authority and a copy shall be filed with the state treasurer. Sec. 54. REPEAL Sec. 22 of No. 154 of the Acts of the 1999 Adj. Sess. (2000) (prioritized roadway improvements on truck network) is repealed. Sec. 55. Sec. 47(c) of No. 156 of the Acts of the 1999 Adj. Sess. (2000) is amended to read: (c) Up to $500,000 of any state funds returned to the agency of transportation as a result of any claims or litigation by the Marble Valley Regional Transit District concerning the Rutland multimodal transportation center shall be escrowed until July 1, 2010, and used to make satisfactory structural repairs to the Rutland multimodal transportation center. Notwithstanding any other law to the contrary, any funds returned to the agency of transportation from the above referenced claims or litigation in excess of the escrowed $500,000 shall be deposited in the transportation fund. Escrowed funds shall be used to repair structural damage resulting from design, engineering or construction of the Rutland multimodal transportation center. Any funds remaining in the escrow fund as of July 1, 2010, including all interest, which shall be credited to the fund, that have not been committed to the repair of structural damage shall be deposited in the transportation fund. Expenditures from the escrow fund shall require approval from the secretary of transportation and the owner of the Rutland multimodal transportation center. By January 15 of each year, the agency of transportation shall report to the House and Senate committees on transportation on the status of any litigation funds referred to in the subsection. 63 THURSDAY, MAY 20, 2004 * * * General Fund Waterfall * * * Sec. 56. ALLOCATION OF GENERAL FUND WATERFALL (a) To the extent funds are transferred to the transportation fund pursuant to Sec. 88 of No. 80 of the Acts of 2004, as amended, such funds are authorized for expenditure as follows: (1) up to $500,000 to the rail division for rail infrastructure projects as selected by the secretary; and (2) up to $400,000 to program development for projects as selected by the secretary; and (3) up to $100,000 to the central garage fund as defined in 19 V.S.A. § 13. (4) up to $365,000 to projects in the paving and bridge programs as selected by the secretary. (b) Any funds transferred to the transportation fund pursuant to subsection (a) of this section shall be allocated pro rata among the specified categories. * * * Public Transit; Local Share Study * * * Sec. 57. PUBLIC TRANSIT; LOCAL SHARE STUDY COMMITTEE (a) A summer study committee is established, consisting of the secretary of transportation or designee, a representative of the public transit advisory committee appointed by the secretary of transportation, a representative of the Vermont League of Cities and Towns to be selected by the league, a representative of the Chittenden County Metropolitan Transportation Organization Public Transportation Task Force, and two members of the Vermont Public Transportation Association to be selected by the association. (b) The committee shall investigate, seek pertinent information from appropriate persons, and make recommendations with respect to long-term sources for funding the local share for public transit projects and programs. The committee shall further make recommendations regarding the appropriate allocation of funding responsibility for public transit projects and programs among federal, state, and local sources. (c) The agency shall provide administrative support for the committee. (d) The committee shall deliver its report, including any recommendations for proposed legislation, to the House and Senate committees on transportation by January 15, 2005.

JOURNAL OF THE HOUSE 64 * * * Hazard Elimination Program * * * Sec. 58. FEDERAL FUNDS TRANSFER Any federal funds transferred to the 23 U.S.C. § 402 (highway safety) program, pursuant to 23 C.F.R. § 1275.6 (failure of state to enact and enforce repeat intoxicated driver laws), shall be used exclusively by the agency for the 23 U.S.C. § 152 (hazard elimination) program or 402 (highway safety) program. The governor’s highway safety council shall work cooperatively with the agency in administering these funds. * * * Official Traffic Control Devices * * * Sec. 59. 10 V.S.A. § 494(6) and (12) are amended to read: The following signs are exempt from the requirements of this chapter except as indicated in section 495 of this title: * * * (6) Official green traffic control signs, including signs on limited access highways consistent with the manual on uniform traffic control devices, adopted under 23 V.S.A. § 1025, directing people to other towns, international airports, postsecondary educational institutions; cultural and recreational destination areas; nonprofit diploma granting educational institutions for people with disabilities; and official blue traffic control signs, including signs on limited access highways, consistent with the manual on uniform traffic control devices, adopted under 23 V.S.A. § 1025, directing people to official state visitor information centers. After having considered the six priority categories in this subdivision, the travel information council may approve installation of a green sign for any of the following: (A) Nonprofit museums; (B) Cultural and recreational attractions owned by the state or federal government; (C) Officially designated scenic byways; (D) Park and ride or multimodal centers; and (E) Fairgrounds or exposition sites; provided the designations in subdivisions (A) through (E) are open a minimum of 120 days each year and are located within 15 miles of an interstate highway exit. Signs erected under this subdivision (6) of this section shall not exceed a maximum allowable size of 80 square feet. 65 THURSDAY, MAY 20, 2004 (12) Directional signs, subject to regulations promulgated by the bureau of public roads Federal Highway Administration with a total surface area not to exceed 4 four square feet providing directions to places of business offering for sale agricultural products harvested or produced on the premises where the sale is taking place. * * * Parking Restrictions for Persons Using Handicapped Plates * * * Sec. 60. 23 V.S.A. § 304a(d) is amended to read: (d) A person who is blind or who has an ambulatory disability may park without fee for an unlimited period not more than 10 continuous days in a parking zone which is restricted as to the length of time parking is permitted. This section shall not apply to zones in which parking, standing, or stopping of all vehicles is prohibited, which are reserved for special vehicles, or where parking is prohibited by any parking ban. As a condition to this privilege, the vehicle shall display the special handicapped plate or placard issued by the commissioner or a special registration license plate or placard issued by any other jurisdiction. * * * Municipal Park-and-Ride Grant Demonstration Program * * * Sec. 61. MUNICIPAL PARK-AND-RIDE GRANT DEMONSTRATION PROGRAM (a) The general assembly finds that with increased demand for alternative transportation choices, the need to reduce the number of single-occupancy vehicles, and the need to reduce pollutants dispersed into the air from vehicular traffic, municipalities may need assistance with funding park-and-ride projects. Accordingly, the municipal park-and-ride grant demonstration program is hereby established. (b) Grants awarded under this section shall be used only for preliminary engineering and construction of park-and-ride lots by municipalities. Any Vermont municipality shall be an eligible applicant. The agency of transportation shall develop an application for this demonstration program and notify eligible participants of its availability. (c) The agency of transportation shall develop criteria for approval of applications which shall include but are not limited to: (1) The proposed site must be owned by the municipality or under long - term lease by the municipality (20 or more years); (2) The proposed site must be on or near a state highway or a class 1 town highway;

JOURNAL OF THE HOUSE 66 (3) The proposed park-and-ride lot must be available for year-round commuter use; (4) The proposed site must provide 10 or more parking spaces; (5) The proposed site must be maintained by the municipality; (6) Activities eligible for grant awards under this section include, but are not limited to, gravel surfacing, paving, lighting, and signing; and (7) When existing transit routes are present, municipalities must agree to collaborate with the public-transit providers. (d) The sum of $100,000 is authorized for use by the agency of transportation for the purposes of implementing this section. * * * Issuance of P.O.W., Pearl Harbor, and Purple Heart Plates * * * Sec. 62. 23 V.S.A. § 304(e) and (j) are amended to read: (e) The commissioner shall upon proper application, issue special number plates to former prisoners of war, Pearl Harbor veterans and recipients of the Purple Heart Medal for use only on vehicles registered at the pleasure car rate and on trucks registered for less than 26,001 pounds and excluding vehicles registered under the International Registration Plan. The commissioner shall determine the design of the special plates and decals. Applicants shall apply on forms prescribed by the commissioner and the applicant’s status as a former prisoner of war (P.O.W.), Pearl Harbor veteran, or holder of a Purple Heart Medal shall be certified by the Veterans’ Administration or state veterans’ affairs office, respectively. The prisoner of war (P.O.W.), Pearl Harbor, or Purple Heart number plates shall not be subject to fees applicable to special plates as set forth in subsection (b) of this section. The plates shall be reissued only to the original holder of the plates or the surviving spouse. The commissioner shall adopt rules under 3 V.S.A. chapter 25 to implement the provisions of this subsection. (j) The commissioner of motor vehicles shall, upon proper application, issue special plates to Vermont veterans, as defined in 38 U.S.C. § 101(2), for use only on vehicles registered at the pleasure car rate and on trucks registered for not more than 8,099 pounds less than 26,001 pounds and excluding vehicles registered under the International Registration Plan. Applicants shall apply on forms prescribed by the commissioner and the applicant’s status as a veteran shall be certified by the Vermont office of veterans’ affairs or by other documentation as required by the commissioner. The type and style of the veterans’ plate shall be determined by the commissioner, except that an American flag shall appear on one side of the plate. A one-time fee of $10.00 67 THURSDAY, MAY 20, 2004 shall be assessed in addition to the annual fee for registration; $5.00 of the one-time fee shall be transferred to the Vermont office of veterans’ affairs. The plates shall be reissued only to the original holder of the plates or the surviving spouse. Notwithstanding section 502 of Title 32, the commissioner may charge the actual costs of production of the plates against the fees collected and shall remit the balance to the transportation fund. The commissioner shall adopt rules to implement the provisions of this subsection. Except for new or renewed registrations, applications for the issuance of veterans’ plates shall be processed in the order received by the department subject to normal workflow considerations. Sec. 63. 23 V.S.A. § 304b(a) is amended to read: (a) The commissioner shall, upon application, issue conservation registration plates for use only on vehicles registered at the pleasure car rate and on trucks registered for not more than 8,099 less than 26,001 pounds and excluding vehicles registered under the International Registration Plan. Plates so acquired, shall be mounted on the front and rear of the vehicle. The commissioner of motor vehicles and the commissioner of fish and wildlife shall determine the graphic design of the special plates in a manner which serves to enhance the public awareness of the state’s interest in restoring and protecting its nongame wildlife and major watershed areas. Applicants shall apply on forms prescribed by the commissioner and shall pay an initial fee of $20.00 in addition to the annual fee for registration. In following years, in addition to the annual registration fee, the holder of a conservation plate shall pay a renewal fee of $20.00. The commissioner shall adopt rules under 3 V.S.A. chapter 25 to implement the provisions of this subsection. Sec. 64. 23 V.S.A. § 304c(a) is amended to read: (a) The commissioner shall, upon application, issue “building bright spaces for bright futures fund,” hereinafter referred to as “the bright futures fund,” registration plates for use only on vehicles registered at the pleasure car rate and on trucks registered for not more than 8,099 less than 26,001 pounds and excluding vehicles registered under the International Registration Plan. Plates so acquired shall be mounted on the front and rear of the vehicle. The commissioner of motor vehicles shall utilize the graphic design recommended by the commissioner of social and rehabilitation services for the special plates to enhance the public awareness of the state’s interest in supporting children’s services. Applicants shall apply on forms prescribed by the commissioner of motor vehicles, and shall pay an initial fee of $20.00 in addition to the annual fee for registration. In following years, in addition to the annual registration fee, the holder of a bright futures fund plate shall pay a renewal fee of $20.00.

JOURNAL OF THE HOUSE 68 The commissioner shall adopt rules under 3 V.S.A. chapter 25 to implement the provisions of this subsection. * * * Local Match Requirements * * * Sec. 65. STUDY OF LOCAL MATCH REQUIREMENTS The agency of transportation, in consultation with the Vermont League of Cities and Towns, the regional planning commissions, and the Chittenden County Metropolitan Planning Organization, shall develop a system of local match funding requirements based on the principle of functional necessity as described in this section. Design, component, and materials features of a highway, bridge, or other transportation structure subject to a local match requirement that are required by state standards or that are essential to the functional integrity of the structure shall have a lower local match requirement, with the use of standardized cost-effective designs, components, or materials having the lowest local match requirement. All design, component, and materials features that are not required by state standards and that are not essential to the functional integrity of a structure shall have a higher local match requirement. Features that are primarily aesthetic or ornamental in purpose shall have the highest local match requirement. The agency may propose one or alternative systems for consideration. Any proposed system shall, in overall structure, be consistent with, but not necessarily bound by, the principles described in this section. The agency shall analyze the feasibility, equity, and financial implications of any proposed system and submit its findings and recommendations to the House and Senate committees on transportation by January 15, 2005. * * * Effective Date * * * Sec. 66. EFFECTIVE DATE This act shall take effect from passage. RICHARD T. MAZZA PETER F. WELCH PHILIP B. SCOTT Committee on the part of the Senate FRANK M. MAZUR MICHAEL J. OBUCHOWSKI TIMOTHY R. CORCORAN II Committee on the part of the House 69 THURSDAY, MAY 20, 2004 Speaker Freed of Dorset in Chair. Pending the question, Shall the Committee of Conference report be adopted? Rep. Kennedy of Chelsea demanded the Yeas and Nays, which demand was sustained by the Constitutional number. The Clerk proceeded to call the roll and the question, Shall the Committee of Conference report be adopted? was decided in the affirmative. Yeas, 122. Nays, 18. Those who voted in the affirmative are: Adams of Hartland Gray of Barre Town Morrissey of Bennington Allaire of Rutland City Haas of Rutland City Nease of Johnson Allard of St. Albans Town Hall of Newport City Nitka of Ludlow Amidon of Charlotte Helm of Castleton Nuovo of Middlebury Anderson of Woodstock Hingtgen of Burlington Obuchowski of Rockingham Atkins of Winooski Houston of Ferrisburgh O'Donnell of Vernon Bailey of Hyde Park Hube of Londonderry Otterman of Topsham Baker of West Rutland Hudson of Lyndon Parent of St. Albans City Bartlett of Dover Jewett of Ripton Partridge of Windham Bohi of Hartford Kainen of Hartford Peaslee of Guildhall Bolduc of Barton Kennedy of Chelsea Perry of Richford Bostic of St. Johnsbury Kenyon of Bradford Peterson of Williston Botzow of Pownal Ketchum of Bethel Pillsbury of Brattleboro Branagan of Georgia Kilmartin of Newport City Reese of Pomfret Brooks of Montpelier Kirker of Essex Rodgers of Glover Brown of Walden Kitzmiller of Montpelier Rogers of Castleton Carey of Chester Klein of East Montpelier Rusten of Halifax Chen of Mendon Koch of Barre Town Schiavone of Shelburne Clark of St. Johnsbury Krawczyk, A. of Bennington Seibert of Norwich Clark of Vergennes Krawczyk, J. of Bennington Severance of Colchester Connell of Warren Larocque of Barnet Shand of Weathersfield Corcoran of Bennington Larson of Burlington Sharpe of Bristol Crawford of Burke LaVoie of Swanton Shaw of Derby Cross of Winooski Lippert of Hinesburg Sheltra of Derby Crowley of West Rutland Livingston of Manchester Shouldice of Calais Darrow of Dummerston Maier of Middlebury Smith of New Haven DePoy of Rutland City Marek of Newfane Smith of Morristown Donaghy of Poultney Marron of Stowe Starr of Troy Donahue of Northfield Martin of Springfield Sunderland of Rutland Town Dostis of Waterbury Masland of Thetford Sweaney of Windsor Duffy of Rutland City Mazur of South Burlington Sweeney of Colchester Dunsmore of Georgia McAllister of Highgate Sweetser of Essex Edwards of Brattleboro McCullough of Williston Towne of Berlin Emmons of Springfield McLaughlin of Royalton Tracy of Burlington Endres of Milton Metzger of Milton Valliere of Barre City Errecart of Shelburne Milkey of Brattleboro Webster of Randolph Fallar of Tinmouth Miller of Shaftsbury Westman of Cambridge Fisher of Lincoln Miller of Elmore Winters of Swanton Flory of Pittsford Molloy of Arlington Winters of Williamstown French of Randolph Monti of Barre City Wood of Brandon

JOURNAL OF THE HOUSE 70 Wright of Burlington Young of Orwell Those who voted in the negative are: Aswad of Burlington Hummel of Underhill Pugh of South Burlington Audette of South Burlington Johnson of South Hero Robinson of Richmond Dakin of Colchester Keenan of St. Albans City Symington of Jericho Head of South Burlington Keogh of Burlington Trombley of Grand Isle Heath of Westford Kiss of Burlington Vincent of Waterbury Howrigan of Fairfield Myers of Essex Zuckerman of Burlington Those members absent with leave of the House and not voting are: Brennan of Colchester Gervais of Enosburg Johnson of Canaan Deen of Westminster Grad of Moretown Larrabee of Danville Donovan of Burlington Hunt of Essex Waite of Pawlet

Rep. Hummel of Underhill explained her vote as follows: “Mr. Speaker: I vote no on the transportation conference committee report because I believe that Sec. 3, subsection (8)(A), regarding construction funds for the Circumferential Highway is in direct contradiction of federal regulation 23 CFR 450.324, which is based on federal law 102-240 of 1991. That regulation requires that the MPO taken an action to amend its TIP to reallocate dollars from Circ construction. Since that has not yet happened, it is premature and incorrect for the General Assembly to reallocate this money.” Rep. Kirker of Essex explained her vote as follows: “Mr. Speaker: I am supporting this bill with the hope and expectation that the CIRC highway Sections A and B will be completed in the near future. In the meantime, I support transportation infrastructure projects throughout the state that are long overdue and are important to be completed.” Rep. Mazur of South Burlington explained his vote as follows: “Mr. Speaker: This conference committee report on the transportation bill attempts to address the many infrastructure needs distributed geographically throughout the state. It establishes a mechanism for dealing in the future with very pressing transportation projects within our limited fiscal capacity. The redirection of the circumferential highway project money was proposed by the Governor after consultation with the Chittenden County MPO. The legislative council issued a legal opinion which fully supports our efforts. This 71 THURSDAY, MAY 20, 2004 was reflected in the agreement between the House and Senate budget conferees as the best and fairest way to address the many state VTRANS projects ready for construction but lack funding to activate. The approach used is consistent with current law passed by this body in the transportation bill last year. We’re a small state and it’s critical that all communities and regions work cooperatively to ensure a safe transportation system and that will enhance job creation and our quality of life. This bill certainly advances this vision.” Rep. Wright of Burlington explained his vote as follows: “Mr. Speaker: I voted yes not only because of the hard and good work of the transportation committee, but to ensure that in the future Chittenden County continues to be treated fairly by this body, and that we do not pit Chittenden County against the rest of the state. Any action by the Legislature or the MPO that creates that friction would be a huge mistake. I will leave the legalese to the lawyers.” Rules Suspended; Report of Committee of Conference Adopted S. 79 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Partridge of Windham, the rules were suspended and Senate bill, entitled An act relating to joint tenancy; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill, 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. 27 V.S.A. § 2 is amended to read: § 2. ESTATE IN COMMON PREFERRED TO JOINT TENANCY; JOINT TENANCY WITH UNEQUAL SHARES (a) Conveyances and devises of lands, whether for years, for life or in fee, made to two or more persons, shall be construed to create estates in common and not in joint tenancy, unless it is expressed therein that the grantees or devisees shall take the lands jointly or as joint tenants or in joint tenancy or to

JOURNAL OF THE HOUSE 72 them and the survivors of them. This provision shall not apply to devises or conveyances made in trust or made to husband and wife or to conveyance in which it manifestly appears from the tenor of the instrument that it was intended to create an estate in joint tenancy. (b)(1) An instrument may create a joint tenancy in which the interests of the joint tenants are equal or unequal. (2) Unless the instrument creating a joint tenancy contains language indicating a contrary intent: (A) It shall be presumed that the joint tenants’ interests are equal. (B) Upon the death of a joint tenant, the deceased joint tenant’s interest shall be allocated among the surviving joint tenants, as joint tenants, in proportion to their respective joint interests at the time of the deceased joint tenant’s death. Sec. 1a. Subdivision (m)(3) of Sec. 148 of No. 142 of the Acts of 2002 is amended to read: (3) The current rule permitting the applicant or recipient to retain jointly-owned real estate when one or more of the co-owners refuses to sell shall be repealed with respect to joint interests created within the 36-month lookback period and, instead, a rebuttable presumption shall exist that full equity value of the real estate is owned by the applicant or recipient. If the applicant or recipient succeeds in rebutting the presumption by showing that one or more of the co-owners have purchased shares of the property, the department shall consider the applicant’s or recipient’s proportional (not pro rata per capita) contribution toward the value of the property in calculating the resource value to the applicant or recipient. This rule shall not apply to joint- interests created prior to the lookback period. The “refusal to sell” rule will continue to apply to joint interests created prior to the lookback period. The applicant’s or recipient’s resource value in any joint tenancy shall be calculated based upon the applicant’s or recipient’s proportional (not per capita) contribution to the value of the jointly held property, regardless of any express or presumed ownership shares under 27 V.S.A. § 5. Sec. 2. 27 V.S.A. § 309(a) is amended to read: (a) Unless otherwise expressly stated or agreed, in any offer of sale or purchase, or contract for the purchase and sale of real property, it shall be presumed that real property taxes assessed and payable during a municipality’s fiscal year in which the transfer occurs shall be prorated as follows so that as between the parties, but not otherwise: 73 THURSDAY, MAY 20, 2004 (1) In municipalities where the municipal tax and the school tax fiscal periods are July 1 to June 30, the seller shall bear the burden of real estate taxes allocable to the period beginning with the first day July 1 of that fiscal year and ending on the day before closing. The buyer shall bear the burden of real estate taxes allocable to the period beginning with the day of closing and ending on the last day of that fiscal year June 30. (2) In municipalities where the municipal tax fiscal period is other than July 1 to June 30, the seller shall bear the burden of real estate taxes allocable to municipal taxes for the period beginning on the first day of the municipality’s fiscal year and ending on the day before closing. The seller shall also bear the burden for real estate taxes allocable to school taxes for the period beginning July 1 of that fiscal year and ending on the day before closing. The buyer shall bear the burden of real estate taxes allocable to both school and municipal taxes for the period beginning with the day of closing and ending with the last day of the respective fiscal year. Sec. 3. 27 V.S.A. § 351 is added to read: § 351. ESTATES AND TRUSTS; CONVEYANCES, SATISFACTIONS, GRANTS, AND RELEASES (a) A conveyance or grant of an interest in real or personal property made to the estate of a decedent, to the estate of a ward, to the ward’s guardian, or to a trust, including a trust in the form of a pension or profit-sharing plan, that names the estate, the guardian, or the trust as the grantee of the interest is a valid and effective conveyance or grant to the personal representative, to the ward, or to the trustee of the trust, in like manner and effect as if the ward, or the personal representative or trustee in his or her fiduciary capacity, had been named the grantee of the conveyance or grant. (b) A discharge, mortgage discharge, release, conveyance, grant, or satisfaction of an interest in real or personal property that is made by an estate, a guardian, or a trust described in subsection (a) of this section, that names the estate, the guardian, or the trust as the holder or grantor of the interest, and that is executed by the personal representative or trustee authorized to execute the instrument is valid in like manner and effect as if the personal representative, guardian, or trustee had been named the holder or the grantor in the instrument. Sec. 4. 27 V.S.A. § 352 is added to read: § 352. CERTIFICATE OF TRUST (a) The settlor or trustee of a trust, at any time after execution or creation of a trust, may execute a certificate of trust that sets forth less than all of the provisions of a trust instrument and any amendments to the instrument. The

JOURNAL OF THE HOUSE 74 certificate of trust may be used as evidence of authority to sell, convey, pledge, mortgage, lease, or transfer title to any interest in real or personal property. The certificate of trust shall be upon the representation of the settlors, grantors, or trustees that the statements contained in the certificate of trust are true and correct. The signature of the grantors or trustees must be under oath before a notary public or other official authorized to administer oaths. The certificate of trust must include: (1) the name of the trust, if one is given; (2) the date of the trust instrument; (3) the name of each grantor or settlor; (4) the name of each original trustee; (5) the name and address of each trustee empowered to act under the trust instrument at the time of execution of the certificate; (6) an abstract of the provisions of the trust instrument authorizing the trustee to act in the manner contemplated by the instrument; (7) a statement that the trust instrument has not been revoked or amended as to the authorizing provisions; (8) a statement that no provisions of the trust instrument limit the authority so granted; and (9) a statement as to whether the trust is supervised by any court and, if so, a statement that all necessary approval has been obtained for the trustees to act. (b) A certificate of trust executed under subsection (a) of this section may be recorded in the land records of the municipality where the land identified in the certificate of trust or any attachment to it is situated. When it is so recorded or filed for recording, or in the case of personal property, when it is presented to a third party, the certificate of trust serves to document the existence of the trust, the identity of the trustees, the powers of the trustees and any limitations on those powers, and other matters set forth in the certificate of trust, as though the full trust instrument had been recorded, filed, or presented. (c) A certificate of trust is conclusive proof as to the matters contained in it, and any party may rely upon the continued effectiveness of the certificate unless: (1) a party dealing with the trustee or trustees has actual knowledge of facts to the contrary; (2) the certificate is amended or revoked under subsection (d) of this section; or 75 THURSDAY, MAY 20, 2004 (3) the full trust instrument is recorded, filed, or presented. (d) Amendment or revocation of a certificate of trust may be made only by a written instrument executed by the settlor or trustee of a trust. Amendment or revocation of a certificate of trust is not effective as to a party unless that party has actual notice of the amendment or revocation. For purposes of this subsection, “actual notice” means that a written instrument of amendment or revocation has been received by the party or, in the case of real property, that either a written instrument of amendment or revocation has been received by the party or that a written instrument of amendment or revocation identifying the real property involved has been recorded in the municipal land records where the real property is situated. Sec. 5. 27 V.S.A. § 341(a) is amended to read: § 341. REQUIREMENTS GENERALLY; RECORDING (a) Deeds and other conveyances of lands, or of an estate or interest therein, shall be signed by the party granting the same and signed by one or more witnesses and acknowledged by the grantor before a town clerk, notary public, master, county clerk, or judge or register of probate and recorded at length in the clerk’s office of the town in which such lands lie. Such acknowledgment before a notary public shall be valid without an official seal being affixed to his or her signature. Sec. 6. 27 V.S.A. § 463 is amended to read: § 463. BY SEPARATE INSTRUMENT (a) Mortgages may be discharged by an acknowledgment of satisfaction, executed by the mortgagee or his attorney, executor, administrator or assigns, which shall be substantially in the following form: I hereby certify that the following described mortgage is paid in full and satisfied, viz:______mortgagor to ______mortgagee, dated ______1920 , and recorded in book ______, page ______, of the land records of the town of ______. (b) When such satisfaction is signed in the presence of one or more witnesses, acknowledged before a town clerk, notary public, master, county clerk, or judge or register of probate and recorded, it shall discharge such mortgage and bar actions brought thereon. Sec. 7. SEVERABILITY If any provision of this act or its application to any person or circumstance is held invalid or in violation of the constitution or laws of the United States,

JOURNAL OF THE HOUSE 76 the invalidity or the violation shall not affect other provisions of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 8. 24 V.S.A. § 2432 is amended to read: § 2432. POWERS AND DUTIES, INVESTMENTS (a) The trustees shall apply the income of such estate to the purpose for which it is held, and deeds or contracts made by them shall be in the name of the town. They may lease, sell, or convey real estate so held, and invest the funds received therefrom. They may loan money belonging to such estate, at annual or semi-annual interest, and as security for such loans shall take deeds or mortgages of real estate in this state. (b) They The trustees may invest the same in bonds of in: (1) Any security, including a revenue obligation, issued, insured, or guaranteed by the United States or in; (2) such Such municipal bonds or other bonds as are a lawful investment for savings banks, savings institutions and trust companies in this state, or in shares of a savings and loan association of this state or share accounts of a federal savings and loan association with its principal office in this state, when and to the extent to which the withdrawal or repurchase value of such shares or accounts may be insured by the Federal Savings and Loan Insurance Corporation, or in the that are rated at the time of the transaction by a nationally recognized statistical rating organization in one of its four highest categories; (3) Repurchase agreements or debt securities of any federally insured financial institution as defined in subdivision 11101(32) of Title 8; (4) The shares of an investment company, or an a unit investment trust, which is registered under the federal investment company act of 1940, as amended, if such mutual investment fund has been in operation for at least ten years and has net assets of at least $10,000,000.00, $500,000,000.00; or (5) may deposit the same in savings banks, trust companies or national banks in this state; and the Deposits in federally insured financial institutions as defined in subdivision 11101(32) of Title 8. (c) The trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds shall have been invested, as well as the proceeds of such investments. The trustees are encouraged to invest in financial institutions operating in the state and in investments within the state that will result in reinvestment in 77 THURSDAY, MAY 20, 2004 Vermont. The provisions of this section as to future investments shall not require the liquidation or disposition of securities legally acquired and held. Sec. 9. EFFECTIVE DATE; RETROACTIVITY (a) This act shall take effect on July 1, 2004. (b) Sec. 6 of this act shall apply retroactively to conveyancing instruments whenever executed. (c) Sec. 3 of this act shall apply retroactively to trust instruments whenever created or executed and to past and future conveyances, grants, mortgage discharges, satisfactions, and releases. However, if a notice of the pendency of an action or proceeding contesting the validity of such a document is recorded or filed before November 1, 2005 in the land records of the municipality in which the real property affected by the action or proceeding is located, this section does not affect such action or proceeding. (d) Sec. 5 of this act shall apply retroactively to all deeds or other conveyances of lands or of an estate or interest therein whenever signed or executed, whether directly by the grantor or by virtue of a power of attorney, provided that this section shall not be construed to apply to any such document the validity of which is being contested in a suit begun or pending before a court or which has been invalidated by a court for lack of a signature of a witness prior to November 1, 2005 . Committee on the Part of Committee on the Part of the Senate the House Sen. John Bloomer Rep. Michael Kainen Sen. Bernier Mayo Rep. Willem Jewett Sen. John Campbell Rep. Mary Peterson Which was considered and adopted on the part of the House. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the nineteenth day of May, 2004, he approved and signed bills originating in the House of the following titles: H. 485 An act relating to the inspection of exhibition motor vehicles H. 775 An act relating to the charter of the city of Burlington

JOURNAL OF THE HOUSE 78 Rules Suspended; Report of Committee of Conference Adopted S. 227 On motion of Rep. Partridge of Windham, the rules were suspended and Senate bill, entitled An act relating to sex offender registration and notification; Appearing on the Calendar for notice, was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill 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 all after the enacting clause and inserting in lieu thereof the following: Sec. 1. LEGISLATIVE INTENT AND PURPOSE The general assembly finds that the release of information about sex offenders to the general public will assist in protecting public safety. The general assembly, in making information about sex offenders available to the public, does not intend that the information be used to inflict retribution or additional punishment on any person convicted of a sexual offense. Sec. 2. 13 V.S.A. § 5401 is amended to read: § 5401. DEFINITIONS As used in this subchapter: * * * (3) “Local law enforcement agency” means the municipal police department or, if statutorily established college or university police department. If the municipality, college, or university has no police department, the law enforcement agency that serves the municipality, college, or university. * * * (10) “Sex offender” means: 79 THURSDAY, MAY 20, 2004 (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: * * * (16) “Risk” means the degree of dangerousness that a sex offender poses to others. “High - risk” means a high degree of dangerousness that a sex offender poses to others. Dangerousness includes the probability of a sexual reoffense. Sec. 3. 13 V.S.A. § 5403 is amended to read: § 5403. REPORTING UPON CONVICTION (a) Upon conviction and prior to sentencing, the court shall order the sex offender to provide the court with the following information, which the court shall forward to the department forthwith: (1) name; (2) date of birth; (3) general physical description; (4) current address; (5) Social Security number; (6) fingerprints; (7) current photograph; and (8) current employment; and (9) name and address of any postsecondary educational institution at which the sex offender is enrolled as a student. (b) Within 10 days after sentencing, the court shall forward to the department the sex offender’s conviction record, including offense, date of conviction, sentence, and any conditions of release or probation. Sec. 4. 13 V.S.A. § 5404 is amended to read: § 5404. REPORTING UPON RELEASE FROM CONFINEMENT OR SUPERVISION (a) Upon receiving a sex offender from the court on a probationary sentence or any alternative sentence under community supervision by the department of corrections, or prior to releasing a sex offender from confinement or supervision, the department of corrections shall forward to the department the following information concerning the sex offender:

JOURNAL OF THE HOUSE 80 (1) an update of the information listed in subsection (a) of section 5403 5403(a) of this title; (2) the address upon release; (3) name, address, and telephone number of the local department of corrections office in charge of monitoring the sex offender; and (4) documentation of any treatment or counseling received. (b) The department of corrections shall notify the department within 24 hours of the time a sex offender changes his or her address and or place of employment, or enrolls in or separates from any postsecondary educational institution. In addition, the department of corrections shall provide the department with any updated information requested by the department. (c) The information required to be provided by subsection (a) of this section shall also be provided by the department of corrections to a sex offender’s parole or probation officer within three days of the time a sex offender is placed on probation or parole by the court or parole board. (d) If it has not been previously submitted, upon receipt of the information to be provided to the department pursuant to subsection (a) of this section, the department shall immediately transmit the conviction data and fingerprints to the Federal Bureau of Investigation. Sec. 5. 13 V.S.A. § 5407 is amended to read: § 5407. SEX OFFENDER’S DUTY TO REPORT (a) A sex offender shall report to the department as follows: (1) if convicted of a registry offense in another state, within 10 days after either establishing residence in this state or crossing into this state for purposes of employment, carrying on a vocation, or being a student, the sex offender shall provide the information listed in subsection (a) of section 5403 5403(a) of this title; (2) annually within 10 days after each anniversary of the person’s date of release the registrant’s birthday, or within 10 days after the anniversary of the person’s date of establishment of residence in Vermont, or crossing into this state for purposes of employment, carrying on a vocation, or being a student, if convicted elsewhere, except, if a person is determined to be a sexually violent predator, that person shall report to the department every 90 days; and (3) within three days after any change of address; 81 THURSDAY, MAY 20, 2004 (4) within three days after the registrant enrolls in or separates from any postsecondary educational institution; and (5) within three days after any change in place of employment. * * * (h) A registrant who has no permanent address shall report to the department to notify it as to his or her temporary residence. Temporary residence, for purposes of this section, need not include an actual dwelling or numbered street address, but shall identify a specific location. A registrant shall not be required to check in daily if he or she makes acceptable other arrangements with the department to keep his or her information current. Sec. 6. 13 V.S.A. § 5411 is amended to read: § 5411. NOTIFICATION TO LOCAL LAW ENFORCEMENT AND LOCAL COMMUNITY (a) Upon receiving a sex offender’s registration materials from the department of corrections, notification that a nonresident sex offender has crossed into Vermont for the purpose of employment, carrying on a vocation, or being a student, or a sex offender’s release or change of address, including changes of address which involve taking up residence in this state, the department shall immediately notify the local law enforcement agency of the following information, which may be used only for lawful law enforcement activities: (1) name; (2) general physical description; (3) nature of offense; (4) sentence; (5) the fact that the registry has on file additional information, including the sex offender’s photograph and fingerprints; and (6) current employment; (7) name and address of any postsecondary educational institution at which the sex offender is enrolled as a student; and (8) whether the offender complied with treatment recommended by the department of corrections. (b)(1) Except as provided for in subsection subsections (c) and (e) of this section, the department of public safety, the department of corrections, and any authorized local law enforcement agency authorized by the department of

JOURNAL OF THE HOUSE 82 public safety, shall release relevant registry information necessary to protect the public concerning persons required to register under state law if the requestor can articulate a specific concern about the behavior of a specific person regarding the requestor’s personal safety or the safety of the requestor’s family another, or the requestor has reason to believe that a specific person may be a registered sex offender and can articulate a concern regarding the requestor’s personal safety or the safety of another. However, the identity of a victim of an offense shall not be released. (2) The department, the department of corrections, and any authorized local law enforcement agency shall release the following registry information if the requestor meets the requirements in subdivision (1) of this subsection: (A) a general physical description of the offender; (B) date of birth; (C) the date and nature of the offense; (D) whether the offender complied with treatment recommended by the department of corrections; and (E) whether there is an outstanding warrant for the offender’s arrest. (c)(1) Except as provided for in subsection (e) of this section, upon request of a member of the public about a specific person, the department, the department of corrections, and any authorized local law enforcement agency shall release registry information on the following registrants: (A) Sex offenders who have been convicted of section 3253 of this title (aggravated sexual assault), subdivision 2405(a)(1)(D) of this title if a registrable offense (kidnapping and sexual assault of a child), or 33 V.S.A. § 6913(d) (sexual activity with a vulnerable adult). (B) Sex offenders who have at least one prior conviction for an offense described in subdivision 5401(10) of this subchapter or a comparable offense in another jurisdiction. (C) Sex offenders who have failed to comply with sex offender registration requirements and for whose arrest there is an outstanding warrant for such noncompliance. (D) Sex offenders who have been designated as sexual predators pursuant to section 5405 of this title. (E) Sex offenders who have been designated by the department of corrections, pursuant to section 5411b of this title, as high risk. 83 THURSDAY, MAY 20, 2004 (2) The department, the department of corrections, and any authorized local law enforcement agency shall release the following registry information to a requestor in accordance with subdivision (1) of this subsection: (A) the offender’s known aliases; (B) the offender’s date of birth; (C) a general physical description of the offender; (D) the offender’s town of residence; (E) the date and nature of the offender’s conviction; (F) if the offender is under the supervision of the department of corrections, the name and telephone number of the local department of corrections office in charge of monitoring the offender; (G) whether the offender complied with treatment recommended by the department of corrections; (H) whether there is an outstanding warrant for the offender’s arrest; and (I) the reason for which the offender information is accessible under subdivision (1) of this subsection. (d) The department, the department of corrections, and any local law enforcement agency authorized to release registry information shall keep a log of requests for registry information and follow the procedure for verification of the requestor’s identity recommended by the department. Such log shall include the requestor’s name, address, telephone number, the name of the person for whom the request was made, the reason for the request, and the date of the request. Information about requestors shall be confidential and shall only be accessible to criminal justice agencies. (e) After 10 years have elapsed from the completion of the sentence, a person required to register as a sex offender for life pursuant to section 5407 of this title may petition the district court for a termination of notification. The state shall make a reasonable attempt to notify the victim of the proceeding, and consider victim testimony regarding the petition. If the registrant was convicted of a crime which requires lifetime registration, there shall be a rebuttable presumption that the person is a high-risk sex offender. Should the registrant present evidence that he or she is not a high-risk offender, the state shall have the burden of proof to establish by a preponderance of the evidence that the person remains a high risk to reoffend. The court shall consider whether the offender has successfully completed sex offender treatment. The court may require the offender to submit to a psychosexual evaluation. If the

JOURNAL OF THE HOUSE 84 court finds that there is a high risk of reoffense, notification shall continue. The Vermont District Court Civil Rules of Civil Procedure shall apply to these proceedings. A registrant may petition the court to be removed from the registry once every 60 months. The presumption under this section that a lifetime registrant is a high-risk offender shall not automatically subject the offender to increased public access to his or her status as a sex offender and related information under subdivision (c)(1)(E) of this section or section 5411a of this title. Sec. 7. 13 V.S.A. § 5411a is added to read: § 5411a. ELECTRONIC POSTING OF THE SEX OFFENDER REGISTRY (a) Notwithstanding sections 2056a-2056e of Title 20, the department shall electronically post information on the internet in accordance with subsection (b) of this section regarding the following sex offenders, upon their release from confinement: (1) Sex offenders who have been convicted of a violation of section 3253 of this title (aggravated sexual assault) or subdivision 2405(a)(1)(D) of this title if a registrable offense (kidnapping and sexual assault of a child). (2) Sex offenders who are convicted of a violation of section 3252 (sexual assault) or 2602 (lewd or lascivious conduct with child) of this title, and who have a prior conviction of a violation of section 3252 (sexual assault) or 2602 (lewd or lascivious conduct with child) of this title. Comparable offenses in another jurisdiction shall be included in this subsection. (3) Sex offenders who have failed to comply with sex offender registration requirements and for whose arrest there is an outstanding warrant for such noncompliance. Information on offenders shall remain on the internet only while the warrant is outstanding. (4) Sex offenders who have been designated as sexual predators pursuant to section 5405 of this title. (5) Sex offenders who have not complied with sex offender treatment recommended by the department of corrections or who are ineligible for sex offender treatment. The department of corrections shall establish rules for the administration of this subdivision and shall specify what circumstances constitute noncompliance with treatment and criteria for ineligibility to participate in treatment. Offenders subject to this provision shall have the right to appeal the department of corrections’ determination in superior court in accordance with Rule 75 of the Vermont Rules of Civil Procedure. This subdivision shall apply prospectively and shall not apply to those sex offenders 85 THURSDAY, MAY 20, 2004 who did not comply with treatment or were ineligible for treatment prior to March 1, 2005. (6) Sex offenders who have been designated by the department of corrections, pursuant to section 5411b of this title, as high-risk. (b) The department shall electronically post the following information on sex offenders designated in subsection (a) of this section: (1) the offender’s name and any known aliases; (2) the offender’s date of birth; (3) a general physical description of the offender; (4) a digital photograph of the offender; (5) the offender’s town of residence; (6) the date and nature of the offender’s conviction; (7) if the offender is under the supervision of the department of corrections, the name and telephone number of the local department of corrections office in charge of monitoring the sex offender; (8) whether the offender complied with treatment recommended by the department of corrections; (9) a statement that there is an outstanding warrant for the offender’s arrest, if applicable; and (10) the reason for which the offender information is accessible under this section. (c) The department shall have the authority to take necessary steps to obtain digital photographs of offenders whose information is required to be posted on the internet and to update photographs as necessary. An offender who is requested by the department to report to the department or a local law enforcement agency for the purpose of being photographed for the internet shall comply with the request within 30 days. (d) An offender’s street address shall not be posted electronically. The identity of a victim of an offense that requires registration shall not be released. (e) Information regarding a sex offender shall not be posted electronically if the conduct that is the basis for the offense is criminal only because of the age of the victim and the perpetrator is within 38 months of age of the victim. (f) Information regarding a sex offender shall not be posted electronically prior to the offender reaching the age of 18, but such information shall be otherwise available pursuant to section 5411 of this title.

JOURNAL OF THE HOUSE 86 (g) Information on sex offenders shall be posted on the internet for the duration of time for which they are subject to notification requirements under section 5401 et seq. of this title. (h) Posting of the information shall include the following language: “This information is made available for the purpose of complying with 13 V.S.A. § 5401 et seq., which requires the Department of Public Safety to establish and maintain a registry of persons who are required to register as sex offenders and to post electronically information on sex offenders. The registry is based on the legislature’s decision to facilitate access to publicly available information about persons convicted of sexual offenses. EXCEPT FOR OFFENDERS SPECIFICALLY DESIGNATED ON THIS SITE AS HIGH-RISK, THE DEPARTMENT OF PUBLIC SAFETY HAS NOT CONSIDERED OR ASSESSED THE SPECIFIC RISK OF REOFFENSE WITH REGARD TO ANY INDIVIDUAL PRIOR TO HIS OR HER INCLUSION WITHIN THIS REGISTRY AND HAS MADE NO DETERMINATION THAT ANY INDIVIDUAL INCLUDED IN THE REGISTRY IS CURRENTLY DANGEROUS. THE MAIN PURPOSE OF PROVIDING THIS DATA ON THE INTERNET IS TO MAKE INFORMATION MORE EASILY AVAILABLE AND ACCESSIBLE, NOT TO WARN ABOUT ANY SPECIFIC INDIVIDUAL. If you have questions or concerns about a person who is not listed on this site or you have questions about sex offender information listed on this site, please contact the Department of Public Safety or your local law enforcement agency. Please be aware that many nonoffenders share a name with a registered sex offender. Any person who uses information in this registry to injure, harass, or commit a criminal offense against any person included in the registry or any other person is subject to criminal prosecution.” (i) The department shall post electronically general information about the sex offender registry and how the public may access registry information. Electronically posted information regarding sex offenders listed in subsection (a) of this section shall be organized and available to search by the sex offender’s name and the sex offender’s county of residence. (j) Any member of the public who seeks to access information on specific sex offenders on the sex offender website shall register on the website. Registration information about site users shall not be public. The website shall require the person’s name and address and shall require the person to acknowledge that he or she has read the following disclaimer: “THE IDENTIFYING INFORMATION REGARDING A REGISTERED USER OF THIS SITE IS MAINTAINED PURSUANT TO LAW AND IS CONFIDENTIAL AND NOT SUBJECT TO PUBLIC DISCLOSURE. THE 87 THURSDAY, MAY 20, 2004 INFORMATION IS COLLECTED TO IDENTIFY A PATTERN OR PRACTICE OF MISUSE OF SEX OFFENDER REGISTRATION INFORMATION SUCH AS THE COMMISSION OF A CRIME AGAINST A REGISTERED SEX OFFENDER OR ANY ATTEMPT TO PORTRAY FALSELY AN INDIVIDUAL AS A SEX OFFENDER. USING AND SHARING SEX OFFENDER INFORMATION RESPONSIBLY TO ENSURE THE SAFETY OF YOURSELF, YOUR FAMILY, AND YOUR COMMUNITY IS NOT A PATTERN OR PRACTICE OF MISUSE.” (k) The department shall adopt rules for the administration of this section and shall expedite the process for the adoption of such rules. The department shall not implement this section prior to the adoption of such rules. Sec. 8. 13 V.S.A. § 5411b is added to read: § 5411b. DESIGNATION OF HIGH - RISK SEX OFFENDER (a) The department of corrections may evaluate a sex offender for the purpose of determining whether the offender is “high-risk” as defined in section 5401 of this title. The designation of high - risk under this section is for the purpose of identifying an offender as one who should be subject to increased public access to his or her status as a sex offender and related information, including internet access. (b) After notice and an opportunity to be heard, a sex offender who is designated as high - risk shall have the right to appeal de novo to the superior court in accordance with Rule 75 of the Vermont Rules of Civil Procedure. (c) The department of corrections shall adopt rules for the administration of this section. The department of corrections shall not implement this section prior to the adoption of such rules. Sec. 9. 13 V.S.A. § 5412 is amended to read: § 5412. 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. (b) Nothing in this subchapter shall be construed to prevent the department, the department of corrections, and any authorized local law enforcement officers agency from notifying members of the public exposed to danger of any persons that pose who are likely to encounter a sex offender who poses a danger under circumstances that are not enumerated in this subchapter.

JOURNAL OF THE HOUSE 88 (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. Sec. 10. 13 V.S.A. § 5233 is amended to read: § 5233. EXTENT OF SERVICES (a) A needy person who is entitled to be represented by an attorney under section 5231 of this title is entitled: (1) To be counseled and defended at all stages of the matter beginning with the earliest time when a person providing his the person’s own counsel would be entitled to be represented by an attorney and including revocation of probation or parole; (2) To be represented in any appeal; and (3) To be represented in any other post-conviction postconviction proceeding that which may have more than a minimal effect on the length or conditions of detention where the attorney or the needy person considers appropriate the claims, defenses, and other legal contentions to be warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law. (b) A needy person’s right to a benefit under this section is not affected by his having provided a similar benefit at his the person’s own expense, or by his having waived it, at an earlier stage. Sec. 11. 3 V.S.A. § 163 is amended to read: § 163. JUVENILE COURT DIVERSION PROJECT * * * (e) The requirements of subdivisions (c)(1), (2), (3), and (4) of this section shall not apply to mandatory conditions imposed by the diversion board, following an adjudication of a civil violation pursuant to section 656 of Title 7. Subdivision (c)(5) of this section shall not restrict the diversion board from notifying the commissioner of motor vehicles that a person has failed to timely complete imposed conditions. The diversion board may disclose all relevant information about a person in an administrative or judicial proceeding related to whether a suspension is proper. Within 30 days of the two-year anniversary of a successful completion of juvenile diversion, the court shall provide notice to all parties of record of the court’s intention to order the sealing of all court files and records, law enforcement records other than entries in the juvenile court diversion project’s centralized filing system, fingerprints, and 89 THURSDAY, MAY 20, 2004 photographs applicable to a juvenile court diversion proceeding. The court shall give the state’s attorney an opportunity for a hearing to contest the sealing of records. The court shall seal the records if it finds: (1) two years have elapsed since the successful completion of the juvenile court diversion program by the participant and the dismissal of the case by the state’s attorney; (2) the participant has not been convicted of a subsequent felony or misdemeanor during the two-year period, and no proceedings are pending seeking such conviction; and (3) rehabilitation of the participant has been attained to the satisfaction of the court. (f) Upon the entry of an order sealing such files and records under this section, the proceedings in the matter under this section shall be considered never to have occurred, all index references thereto shall be deleted, and the participant, the court, and law enforcement officers and departments shall reply to any request for information that no record exists with respect to such participant inquiry in any matter. Copies of the order shall be sent to each agency or official named therein. (g) Inspection of the files and records included in the order may thereafter be permitted by the court only upon petition by the participant who is the subject of such records and only to those persons named therein. (f)(h) Subject to the approval of the attorney general, the Vermont association of court diversion programs may develop and administer programs to assist persons under this section charged with delinquent, criminal, and civil offenses. Sec. 12. 3 V.S.A. § 164 is amended to read: § 164. ADULT COURT DIVERSION PROJECT * * * (e) On application of a participant in an adult diversion program or on the court’s own motion, and after Within 30 days of the two-year anniversary of a successful completion of adult diversion, the court shall provide notice to all parties of record and hearing, of the court shall court’s intention to order the sealing of all court files and records, law enforcement records other than entries in the adult court diversion project’s centralized filing system, fingerprints, and photographs applicable to the proceeding. The court shall give the state’s attorney an opportunity for a hearing to contest the sealing of the records. The court shall seal the records if it finds:

JOURNAL OF THE HOUSE 90 (1) two years have elapsed since the successful completion of the adult diversion program by the participant and the dismissal of the case by the state’s attorney; and (2) the participant has not been convicted of a subsequent felony or misdemeanor after the initial charge of the participant and prior to the above hearing during the two-year period, and no proceedings are pending seeking such conviction; and (3) rehabilitation of the participant has been attained to the satisfaction of the court. (f) Notice of hearing held under this section shall in any event be given to (1) the state’s attorney having jurisdiction; (2) the law enforcement officers or department having custody of the files and records; and (3) the participant. (g) Upon the entry of an order sealing such files and records under this section, the proceedings in the matter under this section shall be considered never to have occurred, all index references thereto shall be deleted, and the participant, the court, and law enforcement officers and departments shall reply to any request for information that no record exists with respect to such participant inquiry in any matter. Copies of the order shall be sent to each agency or official named therein. (h)(g) Inspection of the files and records included in the order may thereafter be permitted by the court only upon petition by the participant who is the subject of such records, and only to those persons named therein. (i) The requirements of subdivisions (c)(1), (2), (3), and (4) of this section shall not apply to mandatory conditions imposed by the diversion board following an adjudication of a civil violation pursuant to section 656 of Title 7. Subdivision (c)(5) of this section shall not restrict the diversion board from notifying the commissioner of motor vehicles that a person has failed to timely complete imposed conditions. The diversion board may disclose all relevant information about a person in an administrative or judicial proceeding related to whether a suspension is proper. (h) The process of automatically sealing records as provided in this section shall only apply to those persons who completed diversion after July 1, 2002. Any person who completed diversion prior to July 1, 2002 must apply to the court to have his or her records sealed. Sealing shall occur if the requirements of subsection (e) of this section are met. 91 THURSDAY, MAY 20, 2004 (j)(i) Subject to the approval of the attorney general, the Vermont association of court diversion programs may develop and administer programs to assist persons under this section charged with delinquent, criminal, and civil offenses. Sec. 13. CORRECTIONS TO S.75 In Sec. 2. of S.75, as enacted during 2004, subsection (g) is deleted in its entirety and inserting in lieu thereof the following: (g) When a person who is committed to the custody of the department of corrections or who is under the supervision of the department of corrections dies, the commissioner of corrections may request to be provided with a copy of any and all reports generated pursuant to subsection (f) of this section. No such request shall be granted where the medical examiner is unable to determine a manner of death or the manner of death is classified as a homicide. In other circumstances, the request shall be granted in the discretion of the medical examiner for good cause shown. Reports disclosed pursuant to this subsection shall remain confidential as required by law and shall not be considered to be a public record pursuant to 1 V.S.A. § 317. Sec. 14. STUDY (a) A sex offender supervision and community notification study committee is established for the purpose of making findings and recommendations to the general assembly on the following: (1) Whether posting information on registered sex offenders on the internet is a valuable and effective public safety tool. If information is posted, which offenders should be subject to the posting and what information should be available via the internet. Other issues to consider include whether internet posting increases risk to the victims of sex offenders and unintentionally publicly reveals their victimization; the effect of internet posting on an offender’s reentry into a community and the risk for reoffense; and the effect of internet posting on persons who are not offenders, but share the same name as a listed sex offender. (2) Issues regarding registered sex offenders who completed their maximum sentence for their sexual offense and are not under the supervision of the department of corrections after release from incarceration, including civil commitment, electronic monitoring bracelets, and alternative methods. (3) Whether Vermont should employ the use of electronic monitoring bracelets, and if so, in what circumstances. The committee shall consider at a minimum the use of bracelets for registered sex offenders who are in the community and as an option to pretrial detention for any offender.

JOURNAL OF THE HOUSE 92 (4) Whether criminal records should be maintained at the Vermont crime information center if they are not fingerprint-supported. (5) A review of the differences and similarities between juvenile sex offenders and adult sex offenders for the purpose of identifying appropriate responses to treatment, incarceration, and supervision of juvenile sex offenders. (b) The committee shall consist of the following members: (1) two members of the house of representatives, from different political parties, appointed by the speaker of the house; (2) two members of the senate, from different political parties, appointed by the committee on committees; (3) the commissioner of the department of corrections or the director of the department of corrections’ sex offender treatment program; (4) the commissioner of the department of developmental and mental health services or his or her designee; (5) the defender general or his or her designee; (6) the executive director of the Vermont American civil liberties union, or his or her designee; (7) two members at large appointed by the governor; (8) the executive director of Vermont legal aid or his or her designee; (9) the executive director of the department of state’s attorneys or his or her designee; and (10) the commissioner of the department of public safety or his or her designee. (c) In its deliberations, the committee shall consult with the governor’s commission on prison overcrowding, Vermont protection and advocacy, the office of the juvenile defender, and the center for crime victim services. (d) The committee 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. (e) Legislative members of the committee shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 406. The at-large members appointed by the governor shall be entitled to per diem compensation and reimbursement for expenses in the same manner as legislative members, provided they are not state employees. 93 THURSDAY, MAY 20, 2004 (f) The committee shall meet no more than five times. (g) The committee findings and recommendations, including proposals for legislative action, shall be presented to the general assembly no later than January 15, 2005. Sec. 15. VERMONT CRIME INFORMATION CENTER The director of the Vermont crime information center shall maintain and disseminate criminal records pursuant to chapter 117 of Title 20 regardless of whether the record is fingerprint-supported. Any “no print, no record” rule or policy of the center shall be void. Sec. 16. DISSEMINATION OF ELECTRONIC CASE RECORDS The judiciary shall not permit public access via the internet to criminal case records or family court case records prior to June 1, 2005. The court may permit criminal justice agencies, as defined in 20 V.S.A. § 2056a, internet access to criminal case records for criminal justice purposes, as defined in section 2056a. Sec. 17. TRAINING (a) The department of public safety shall 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 the administration of this act. (b) The Vermont center for crime victim services shall establish and conduct, in collaboration with the Vermont network against domestic violence and sexual assault and other appropriate agencies, a comprehensive plan for public education regarding sexual violence in Vermont. Such training shall be offered at the local level throughout Vermont and shall be focused on providing information to community members, municipal leaders, law enforcement personnel, health care providers, early education providers, school personnel and educators, and others. Information presented shall include the dynamics of sexual violence; its impact on victims and the community; sex offender typologies, treatment, and community supervision; and sexual violence prevention. Sec. 18. APPROPRIATION (a) The amount of $50,000.00 in general funds one-time money is appropriated to the department of public safety in fiscal year 2005 for the purpose of establishing an on-line sex offender registry information webpage in accordance with this act.

JOURNAL OF THE HOUSE 94 (b) The amount of $25,000.00 in general funds one-time money is appropriated to the department of public safety fiscal year 2005 for the purpose of establishing and conducting, 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 the administration of this act. (c) The amount of $20,000.00 in general funds is appropriated to the department of public safety in fiscal year 2005 for the purpose of maintaining the sex offender registry. Sec. 19. EFFECTIVE DATE (a) Sec. 7 of this act shall take effect on October 1, 2004, except that the department of public safety may initiate rulemaking pursuant to Sec.7. prior to this effective date, and except that subdivision (a)(5) of Sec. 7 shall take effect March 1, 2005. (b) Sec. 8 of this act shall take effect March 1, 2005, except that the department of corrections may initiate rulemaking pursuant to Sec.8. prior to this effective date. (c) Secs. 10 and 13 of this act shall take effect upon passage. Committee on the Part Committee on the Part of the Senate of the House Sen. Richard Sears Rep. Margaret Flory Sen. John Campbell Rep. Michael Kainen Sen. John Bloomer Rep. William Lippert Which was considered and adopted on the part of the House. Bills Messaged to Senate Forthwith On motion of Rep. Symington of Jericho, the rules were suspended and the following bills were ordered messaged to the Senate forthwith: S. 79 Senate bill, entitled An act relating to joint tenancy; S. 227 Senate bill, entitled An act relating to sex offender registration and notification; 95 THURSDAY, MAY 20, 2004 Message from the Senate No. 73 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has considered a bill originating in the House of the following title: H. 765. An act relating to the term of “Vermont Maple”. And has passed the same in concurrence with proposals of amendment in the adoption of which the concurrence of the House is requested. The Senate has considered House proposal of amendment to Senate proposal of amendment with further House proposal of amendment to Senate bill of the following title: S. 42. An act relating to creating an office of land recycling, and otherwise revising the brownfields reclamation program. And has concurred therein. The Senate has considered House proposal of amendment to Senate proposal of amendment to House bill of the following title: H. 784. An act relating to income tax. And has concurred therein. The Senate has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses upon House bills of the following titles: H. 35. An act relating to child support, custody and visitation. H. 538. An act relating to trail by jury and jury services. H. 768. An act making appropriations for the support of government. And has accepted and adopted the same on its part. Rules Suspended; Report of Committee of Conference Adopted H. 327 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Partridge of Windham, the rules were suspended and House bill, entitled An act relating to identity theft; Was taken up for immediate consideration.

JOURNAL OF THE HOUSE 96 The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the bill be amended by striking all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 9 V.S.A. § 2480a is amended to read: § 2480a. DEFINITIONS For purposes of this subchapter: * * * (4) “Identity theft” means the unauthorized use of another person’s personal identifying information to obtain credit, goods, services, money, or property. (4)(5) “Investigative credit report” means a report in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any such items of information. The term does not include reports of specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a credit reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer. (6) “Proper identification,” as used in this subchapter, means that information generally deemed sufficient to identify a person. (7) “Security freeze” means a notice placed in a credit report, at the request of the consumer who is a victim of identity theft, pursuant to section 2480h of this title. Sec. 2. 9 V.S.A. § 2480b is amended to read: § 2480b. DISCLOSURES TO CONSUMERS * * * (c) Any time a credit reporting agency is required to make a written disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at least 12 point type, and in bold type as indicated, the following notice: 97 THURSDAY, MAY 20, 2004 NOTICE TO VERMONT CONSUMERS * * * (3) If you believe a law regulating consumer credit reporting has been violated, you may file a complaint with the Vermont Attorney General’s Consumer Assistance Program, 104 Morrill Hall, University of Vermont, Burlington, Vermont 05405. Telephone number (800) 649-2424 or, in Chittenden County, 649-2424.” Vermont Consumers Who Are Victims of Identity Theft Have the Right to Obtain a Security Freeze You may obtain a security freeze on your credit report at no charge if you are a victim of identity theft and you submit a copy of a police report, investigative report or complaint you have filed with a law enforcement agency about unlawful use of your personal information by another person. You have a right to place a “security freeze” on your credit report pursuant to 9 V.S.A. § 2480h. The security freeze will prohibit a credit reporting agency from releasing any information in your credit report without your express authorization. A security freeze must be requested in writing by certified mail. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular phone, utilities, digital signature, internet credit card transaction, or other services, including an extension of credit at point of sale. When you place a security freeze on your credit report, within ten business days you will be provided a personal identification number or password to use if you choose to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties or period of time after the freeze is in place. To provide that authorization, you must contact the credit reporting agency and provide all of the following: (1) The unique personal identification number or password provided by the credit reporting agency. (2) Proper identification to verify your identity.

JOURNAL OF THE HOUSE 98 (3) The proper information regarding the third party or parties who are to receive the credit report or the period of time for which the report shall be available to users of the credit report. A credit reporting agency that receives a request from a consumer to temporarily lift a freeze on a credit report shall comply with the request no later than three business days after receiving the request. A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account, provided you have previously given your consent to this use of your credit reports. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements. You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a credit reporting agency or a user of your credit report.” * * * (e) The attorney general may revise this required notice by rule as appropriate from time to time so long as no new substantive rights are created therein. Sec. 3. 9 V.S.A. § 2480h-2480n are added to read: § 2480h. SECURITY FREEZE BY CREDIT REPORTING AGENCY; TIME IN EFFECT (a) A consumer who has been the victim of identity theft may place a security freeze on his or her credit report by making a request in writing by certified mail to a credit reporting agency with a valid copy of a police report, investigative report, or complaint the consumer has filed with a law enforcement agency about unlawful use of his or her personal information by another person. A credit reporting agency shall not charge a fee for placing, removing, or removing for a specific party or parties a security freeze on a credit report. A security freeze shall prohibit, subject to the exceptions in subsection 2480h(l), the credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer. When a security freeze is in place, information from a consumer’s credit report shall not be released to a third party without prior express authorization from the consumer. This subsection does not prevent a credit 99 THURSDAY, MAY 20, 2004 reporting agency from advising a third party that a security freeze is in effect with respect to the consumer’s credit report. (b) A credit reporting agency shall place a security freeze on a consumer’s credit report no later than five business days after receiving a written request from the consumer. (c) The credit reporting agency shall send a written confirmation of the security freeze to the consumer within 10 business days and shall provide the consumer with a unique personal identification number or password, other than the customer’s Social Security number, to be used by the consumer when providing authorization for the release of his or her credit for a specific party, parties, or period of time. (d) If the consumer wishes to allow his or her credit report to be accessed for a specific party, parties or period of time while a freeze is in place, he or she shall contact the credit reporting agency, request that the freeze be temporarily lifted, and provide the following: (1) Proper identification. (2) The unique personal identification number or password provided by the credit reporting agency pursuant to subsection (c) of this section. (3) The proper information regarding the third party, parties, or time period for which the report shall be available to users of the credit report. (e) A credit reporting agency may develop procedures involving the use of telephone, fax, the internet, or other electronic media to receive and process a request from a consumer to temporarily lift a freeze on a credit report pursuant to subsection (d) of this section in an expedited manner. (f) A credit reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section shall comply with the request no later than three business days after receiving the request. (g) A credit reporting agency shall remove or temporarily lift a freeze placed on a consumer’s credit report only in the following cases: (1) Upon consumer request, pursuant to subsection (d) or (j) of this section. (2) If the consumer’s credit report was frozen due to a material misrepresentation of fact by the consumer. If a credit reporting agency intends to remove a freeze upon a consumer’s credit report pursuant to this subdivision, the credit reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer’s credit report.

JOURNAL OF THE HOUSE 100 (h) If a third party requests access to a credit report on which a security freeze is in effect and this request is in connection with an application for credit or any other use and the consumer does not allow his or her credit report to be accessed for that specific party or period of time, the third party may treat the application as incomplete. (i) If a consumer requests a security freeze pursuant to section 2480h of this title, the credit reporting agency shall disclose to the consumer the process of placing and temporarily lifting a security freeze and the process for allowing access to information from the consumer’s credit report for a specific party, parties, or period of time while the security freeze is in place. (j) A security freeze shall remain in place until the consumer requests that the security freeze be removed. A credit reporting agency shall remove a security freeze within three business days of receiving a request for removal from the consumer who provides both of the following: (1) Proper identification. (2) The unique personal identification number or password provided by the credit reporting agency pursuant to subsection (c) of this section. (k) A credit reporting agency shall require proper identification of the person making a request to place or remove a security freeze. (l) The provisions of this section, including the security freeze, do not apply to the use of a consumer report by the following: (1) A person, or the person’s subsidiary, affiliate, agent, or assignee with which the consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt, or extending credit to a consumer with a prior or existing account, contract, or debtor-creditor relationship, subject to the requirements of section 2480e of this title. For purposes of this subdivision, “reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements. (2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subsection (d) of this section for purposes of facilitating the extension of credit or other permissible use. (3) Any person acting pursuant to a court order, warrant, or subpoena. (4) The office of child support when investigating a child support case pursuant to Title IV-D of the Social Security Act (42 U.S.C. et seq.) and section 4102 of Title 33. 101 THURSDAY, MAY 20, 2004 (5) The department of prevention, assistance, transition, and health access or its agents or assignee acting to investigate Medicaid fraud. (6) The department of taxes, municipal taxing authorities, or the department of motor vehicles or any of their agents or assignees, acting to investigate or collect delinquent taxes or assessments, including interest and penalties, unpaid court orders, or to fulfill any of their other statutory or charter responsibilities. (7) A person’s use of credit information for the purposes of prescreening as provided by the federal Fair Credit Reporting Act. (8) Any person for the sole purpose of providing a credit file monitoring subscription service to which the consumer has subscribed. (9) A credit reporting agency for the sole purpose of providing a consumer with a copy of his or her credit report upon the consumer’s request. § 2480i. CREDIT REPORTING AGENCY DUTIES IF SECURITY FREEZE IN PLACE If a security freeze is in place, a credit reporting agency shall not change any of the following official information in a credit report without sending a written confirmation of the change to the consumer within 30 days of the change being posted to the consumer’s file: name, date of birth, Social Security number, and address. Written confirmation is not required for technical modifications of a consumer’s official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and the former address. § 2480j. PERSONS NOT REQUIRED TO PLACE SECURITY FREEZE The following persons are not required to place in a credit report a security freeze, pursuant to section 2480h of this title, provided, however, that any person that is not required to place a security freeze on a credit report under the provisions of subdivision (3) of this section shall be subject to any security freeze placed on a credit report by another credit reporting agency from which it obtains information: (1) A check services or fraud prevention services company, which reports on incidents of fraud or issues authorizations for the purpose of approving or processing negotiable instruments, electronic fund transfers, or similar methods of payment. (2) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM

JOURNAL OF THE HOUSE 102 abuse, or similar negative information regarding a consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution. (3) A credit reporting agency that: (A) acts only to resell credit information by assembling and merging information contained in a database of one or more credit reporting agencies; and (B) does not maintain a permanent database of credit information from which new credit reports are produced. § 2480k. COMPLAINTS TO LAW ENFORCEMENT AGENCIES A person who has learned or reasonably suspects that his or her personal identifying information has been unlawfully used by another, as described in subsection 2029(a) of Title 13, may make a complaint about the unlawful use of personal identifying information to the state police or to the person’s local law enforcement agency. The law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency. If the suspected crime was committed in a different jurisdiction, the law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency and refer the complaint to a law enforcement agency in that different jurisdiction. § 2480l. VERIFICATION OF CHANGE OF CONSUMER’S ADDRESS FOR PREAPPROVED OFFERS OF CREDIT A credit card issuer that mails an offer or solicitation to receive a credit card and, in response, receives a completed application for a credit card that lists an address that is substantively different from the address on the offer or solicitation shall make a commercially reasonable attempt to verify the change of address, which may include checking addresses on other open accounts. § 2480m. LIMITATIONS ON USE OF SOCIAL SECURITY NUMBERS Prior to posting or requiring the posting of a document in a place of general public circulation, an agency, board, department, commission, committee, branch, instrumentality or authority of the state or an agency, board, committee, department, branch, instrumentality, commission or authority of any political subdivision of the state shall take all reasonable steps 103 THURSDAY, MAY 20, 2004 to redact any Social Security numbers from the document. Files and records made available to the public in accordance with and pursuant to 24 V.S.A. § 1165 are not considered posted in a place of general public circulation for the purposes of this section. § 2480n. CREDIT REPORT FILES OF DECEASED PERSONS (a) An executor, administrator, or other person authorized to act on behalf of an estate of a deceased person may request that a credit reporting agency indicate on the deceased person's credit reporting file that the person is deceased. The credit reporting agency shall indicate on the deceased person's credit reporting file that the person is deceased within five business days of receipt of the following documentation from the executor, administrator or other person authorized to act on behalf of the estate of the deceased person: (1) a certificate of death, or a certificate of appointment, letters testamentary, or other order from the probate court authorizing the executor, administrator, or other person to act on behalf of the estate of the deceased person; and (2) a request to indicate on the deceased person's credit reporting file that the person is deceased. (b) The credit reporting agency may remove the indication placed on the person's file pursuant to subsection (a) of this section if the credit reporting agency finds that the indication was placed on the person's file through material misrepresentation of fact. If the credit reporting agency intends to remove the indication pursuant to this subsection, the credit reporting agency shall notify the executor, administrator, or other person authorized to act on behalf of the estate in writing prior to removing the indication. Sec. 4. 13 V.S.A. § 2030 is added to read: § 2030. IDENTITY THEFT (a) No person shall obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person with intent to use the information to commit a misdemeanor or a felony. (b) No person shall knowingly or recklessly obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person without the consent of the other person and knowingly or recklessly facilitating the use of the information by a third person to commit a misdemeanor or a felony. (c) For the purposes of this section, “personal identifying information” includes name, address, birth date, Social Security number, motor vehicle

JOURNAL OF THE HOUSE 104 personal identification number, telephone number, financial services account number, savings account number, checking account number, credit card number, debit card number, picture, identification document or false identification document, electronic identification number, educational record, health care record, financial record, credit record, employment record, e-mail address, computer system password, or mother’s maiden name, or similar personal number, record, or information. (d) This section shall not apply when a person obtains the personal identifying information belonging or pertaining to another person to misrepresent the person’s age for the sole purpose of obtaining alcoholic beverages, tobacco, or another privilege denied based on age. (e) It shall be an affirmative defense to an action brought pursuant to this section, to be proven by a preponderance of the evidence, that the person had the consent of the person to whom the personal identifying information relates or pertains. (f) A person who violates this section shall be imprisoned for not more than three years or fined not more $5,000.00, or both. A person who is convicted of a second or subsequent violation of this section involving a separate scheme shall be imprisoned for not more than ten years or fined not more than $10,000.00, or both. Sec. 5. STUDY; REPORT (a) The agency of administration with the cooperation of the attorney general’s office, the department of health, the agency of human services, and the agency of commerce and community development and with solicited participation from the Vermont League of Cities and Towns and any other interested affected parties 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. Prohibiting the following and assessment of the appropriate implementation periods shall be considered along with an investigation of any potential secondary effects: (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 105 THURSDAY, MAY 20, 2004 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 agency shall prepare recommendations and report to the general assembly and the senate committees on judiciary and finance and the house committees on commerce and judiciary on or before January 15, 2005. Sec. 6. EFFECTIVE DATES This act shall take effect upon passage, except for Secs. 1, 2, and 3 which shall take effect on July 1, 2005. Committee on the Part Committee on the Part of the Senate of the House Sen. Richard Sears Rep. Mark Young Sen. John Bloomer Rep. Alan Parent Sen. Susan Bartlett Rep. Erron Carey Which was considered and adopted on the part of the House. Rules Suspended; Report of Committee of Conference Adopted H. 772 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Partridge of Windham, the rules were suspended and House bill, entitled An act relating to executive branch fees; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the House accede to the Senate proposal of amendment with the following amendments thereto: First: In Sec. 11, by striking subsection (b) in its entirety and inserting in lieu thereof the following: (b) The house committee on ways and means and the senate committee on finance shall review the submissions required by subsection (a) of this section.

JOURNAL OF THE HOUSE 106 Second: By striking Sec. 13 in its entirety and inserting in lieu thereof the following: Sec. 13. 10 V.S.A. § 4254 is amended to read: § 4254. FISHING AND HUNTING LICENSES; ELIGIBILITY, DESIGN, DISTRIBUTION, SALE, AND ISSUE * * * (i) If the board establishes a moose hunting season, up to five moose permits shall be set aside to be auctioned. The board shall adopt rules necessary for the department to establish, implement, and run the auction process. Proceeds for the auction shall be deposited in the fish and wildlife fund and used for conservation education programs run by the department. Successful bidders must have a Vermont hunting or combination license in order to purchase a moose permit. Beginning with the 2006 hunting season, the five moose permits set aside for auction shall be in addition to the number of annual moose permits authorized by the board. Third: In Sec. 19, by striking 3 V.S.A. § 2822(j)(2)(A)(iii)(III) in its entirety and inserting in lieu thereof the following: (III) Individual permit or application to $300.00 per operate under general permit for project for construction activities; original application; construction amendment for increased acreage. projects five acres or greater in size; $30.00 per project for construction projects between one and five acres in size. Fourth: In Sec. 19, by striking 3 V.S.A. § 2822(j)(9) in its entirety and inserting in lieu thereof the following: (9) For waste hauler permits issued under 10 V.S.A. § 6607a: $20.00 $25.00 per vehicle used, by the commercial hauler that is permitted, for transporting waste. This fee shall be submitted with the permit application and 107 THURSDAY, MAY 20, 2004 each year thereafter for the duration of the permit, at the time of the filing of the annual statement required by 10 V.S.A. § 6605f(m). Fifth: By striking Sec. 28 in its entirety and inserting in lieu thereof the following: Sec. 28. TEMPORARY MORATORIUM ON FEES AND TAXES FOR MINING WASTE FACILITIES (a) A solid waste treatment, storage, transfer, or disposal facility certified under section 6605 of Title 10 solely for solid waste resulting from mining, extraction, or mineral processing shall not be subject to the franchise tax on waste facilities under section 5952 of Title 32 for the portion of the tax that could be assessed for any period of time before July 1, 2005. (b) A solid waste treatment, storage, or disposal facility certified under section 6605 of Title 10 solely for solid waste resulting from mining, extraction, or mineral processing shall not be liable for the portion of the fee required by subdivisions 2822(j)(6)(A) and (C) of Title 3 that could be assessed for any period of time before July 1, 2005. (c) By May 1, 2005, the secretary of natural resources shall notify the senate committee on natural resources and energy, the house committee on natural resources and energy, the senate committee on finance, and the house committee on ways and means of the secretary’s recommendation on the application and proposed amount of the franchise tax on waste facilities under section 5952 of Title 32 and the fee required by subdivision 2822(j)(6)(A) of Title 3 to a solid waste treatment, storage, or disposal facility certified under section 6605 of Title 10 solely for solid waste resulting from mining, extraction, or mineral processing. (d) The franchise tax on waste facilities under section 5952 of Title 32 and the fee required by subdivision 2822(j)(6)(A) of Title 3 as they apply to a solid waste treatment, storage, or disposal facility certified under section 6605 of Title 10 solely for solid waste resulting from mining, extraction, or mineral processing shall not apply retroactively to the solid waste resulting from mining, extraction, or mineral processing operations. (e) Nothing in this section shall be construed to relieve a person from complying with the requirements of section 6605 of Title 10 or any other applicable law. Sixth: By inserting Sec. 35 to read: Sec. 35. STUDY

JOURNAL OF THE HOUSE 108 The department of taxes, in consultation with the joint fiscal office, legislative council, Vermont League of Cities and Towns, Vermont Assessors and Listers Association, Vermont Housing Finance Agency, Housing Vermont, and Vermont Housing and Conservation Board, shall consider the advisability of including the value of affordable housing tax credits under Section 42 of the Internal Revenue Code or section 5930u of Title 32 in an income-method appraisal, in light of judicial opinions in Vermont and other states on this issue; and shall report its findings and recommendations to the general assembly by January 15, 2005. Seventh: In Sec. 39, by striking 20 V.S.A. § 3815 in its entirety and inserting in lieu thereof the following: § 3815. DOG, CAT, AND WOLF-HYBRID SPAYING AND NEUTERING PROGRAM (a) The agency of agriculture, food and markets shall establish by rule a process by which a qualified organization shall administer a program providing reduced-cost spaying and neutering services and presurgical immunization for dogs, cats, and wolf-hybrids owned by low income individuals. (b) The program shall reimburse veterinarians who voluntarily consent to spay or neuter dogs, cats, and wolf-hybrids under the auspices of the program. The reimbursement shall be less any co-payment by the owner of a dog, cat, or wolf - hybrid for the cost of each spaying or neutering procedure. Eighth: In Sec. 41, by striking 8 V.S.A. § 4523(g) in its entirety and inserting in lieu thereof the following: (g) Nothing in this section shall be construed to limit any common law authority of the attorney general with respect to a nonprofit health care conversion; nor shall this section be construed to limit the application of Title 11b to any transaction reviewable under this section. Ninth: In Sec. 42, by striking 8 V.S.A. § 4595(g) in its entirety and inserting in lieu thereof the following: (f)(g) Nothing in this section shall be construed to limit any common law authority of the attorney general with respect to a nonprofit health care conversion; nor shall this section be construed to limit the application of Title 11b to any transaction reviewable under this section. Tenth: By striking Sec. 45 in its entirety and inserting in lieu thereof new Secs. 45 through 49 to read as follows: Sec. 45. GREEN MOUNTAIN CONSERVATION CAMPS TUITION 109 THURSDAY, MAY 20, 2004 (a) The statutory amendment to 10 V.S.A. § 4047(d) created by Sec. 26 of No. 70 of the Acts of the 2003 Adj. Sess. (2004) (Green Mountain Conservation Camp tuition) is repealed, the statutory amendment to 10 V.S.A. § 4047(d) shall not apply to the tuition charged for attendance at the Green Mountain Conservation Camps in the 2004 calendar year, and 10 V.S.A. § 4047(d) shall revert to the language in effect prior to March 1, 2004 until further amended by Sec. 46 of this Act. (b) The department of fish and wildlife shall refund to an applicant for attendance at the Green Mountain Conservation Camps in the 2004 calendar year any tuition receipts paid to the department in excess of $100.00 per applicant. Sec. 46. 10 V.S.A. § 4047(d) is amended to read: (d) Receipts from tuition charged for attendance at Green Mountain conservation camps Conservation Camps shall be deposited in the fish and wildlife fund. The tuition shall be $100.00 $175.00. Sec. 47. REVISION OF WASTEWATER SYSTEM AND POTABLE WATER SUPPLY RULES AS THEY RELATE TO GREASE TRAPS (a) Notwithstanding subsection 1-509(a) of the state wastewater system and potable water supply rules, effective August 16, 2002, a grease interceptor shall not be required if the wastewater is disposed of in a municipal wastewater treatment plant. (b) Notwithstanding subsection 1-509(b) of the state wastewater system and potable water supply rules, effective August 16, 2002, a grease interceptor shall be designed in accordance with the uniform plumbing code of 1997. (c) These requirements may be revised by rule by the secretary of natural resources. Sec. 48. JOINT FISCAL OFFICE STUDY By January 15, 2005, the joint fiscal office shall report to the general assembly recommendations for potential financial, fee, and tax incentives that may be offered to purchasers of hybrid electric automobiles. Sec. 49. EFFECTIVE DATES; REPEALS (a) Sec. 3 (podiatrist fees; licenses) of this act shall be repealed on June 30, 2006, and Sec. 3a (podiatrist fees; licenses) shall take effect July 1, 2006. (b) Sec. 4 (physicians’ fees; licenses) shall be repealed on June 30, 2006, and Sec. 4a (physicians’ fees; licenses) shall take effect July 1, 2006.

JOURNAL OF THE HOUSE 110 (c) Sec. 10 (general duties of commissioner of department of fish and wildlife; fees) shall take effect January 1, 2006. (d) Sec. 13, 10 V.S.A. § 4254(h) (hunting lottery) shall take effect January 1, 2005, and (i) (moose auction) shall take effect November 1, 2004. (e) Sec. 14 (fishing and hunting license fees) shall take effect January 1, 2005. (f) This subsection and Sec. 28 (moratorium on fees and taxes for mining waste facilities) shall take effect upon passage. Sec. 28, except for subsection (d), shall be repealed on June 30, 2005. Sec. 28(a) does not prohibit the assessment and payment of any solid waste franchise tax that may accrue after July 1, 2005 for mining, extraction, and mineral processing waste. Sec. 28(b) does not prohibit the assessment and payment of any fee that may accrue after July 1, 2005 for multiyear permits applied for during the moratorium. (g) Sec. 33 of this act (qualified rental unit education tax exemption) shall be effective retroactively from January 1, 2004. (h) Sec. 34 of this act (disregard of affordable housing credits in appraisal value) shall be effective for appraisals relating to grand lists before April 1, 2005. (i) This subsection and Secs. 40-44 of this act (health subsidiaries) shall take effect from passage, and any investment in a subsidiary existing on the effective date of this subsection shall be treated as if sections 3463 and 3681 of Title 8 as amended by this act were the law in effect at the time of the acquisition of such investment. (j) This subsection and Sec. 45 of this act (reimbursement of Green Mountain Conservation Camps tuition) shall take effect upon passage. (k) Sec. 46 of this act (Green Mountain Conservation Camps tuition increase) shall take effect August 20, 2004. (l) This subsection and Sec. 47 of this act (revision of wastewater system and potable water supply rules as they relate to grease traps) shall take effect upon passage and shall be repealed on June 30, 2005. Committee on the Part Committee on the Part of the Senate of the House Sen. Ann Cummings Rep. Richard Marron Sen. Mark Macdonald Rep. Robert Rusten Sen. Claire Ayer Rep. Edwin Amidon 111 THURSDAY, MAY 20, 2004 Pending the question, Shall the Committee of Conference report be adopted? Rep. Keenan of St. Albans City demanded the Yeas and Nays, which demand was sustained by the Constitutional number. The Clerk proceeded to call the roll and the question, Shall the Committee of Conference report be adopted? was decided in the affirmative. Yeas, 92. Nays, 45. Those who voted in the affirmative are: Adams of Hartland Flory of Pittsford Myers of Essex Allaire of Rutland City Gray of Barre Town Nitka of Ludlow Amidon of Charlotte Hall of Newport City O'Donnell of Vernon Anderson of Woodstock Heath of Westford Otterman of Topsham Bailey of Hyde Park Helm of Castleton Parent of St. Albans City Baker of West Rutland Houston of Ferrisburgh Perry of Richford Bartlett of Dover Hudson of Lyndon Peterson of Williston Bolduc of Barton Kainen of Hartford Reese of Pomfret Bostic of St. Johnsbury Kennedy of Chelsea Robinson of Richmond Botzow of Pownal Kenyon of Bradford Rusten of Halifax Branagan of Georgia Keogh of Burlington Severance of Colchester Brooks of Montpelier Ketchum of Bethel Shaw of Derby Brown of Walden Kilmartin of Newport City Shouldice of Calais Carey of Chester Kirker of Essex Smith of New Haven Chen of Mendon Kitzmiller of Montpelier Smith of Morristown Clark of St. Johnsbury Klein of East Montpelier Starr of Troy Clark of Vergennes Koch of Barre Town Sunderland of Rutland Town Connell of Warren Krawczyk, A. of Bennington Sweeney of Colchester Corcoran of Bennington Krawczyk, J. of Bennington Sweetser of Essex Crawford of Burke Larocque of Barnet Towne of Berlin Crowley of West Rutland LaVoie of Swanton Trombley of Grand Isle Dakin of Colchester Livingston of Manchester Valliere of Barre City DePoy of Rutland City Marron of Stowe Vincent of Waterbury Donaghy of Poultney Martin of Springfield Webster of Randolph Dostis of Waterbury Mazur of South Burlington Westman of Cambridge Duffy of Rutland City McAllister of Highgate Winters of Swanton Dunsmore of Georgia Metzger of Milton Winters of Williamstown Endres of Milton Miller of Shaftsbury Wood of Brandon Errecart of Shelburne Miller of Elmore Wright of Burlington Fallar of Tinmouth Monti of Barre City Young of Orwell Fisher of Lincoln Morrissey of Bennington Those who voted in the negative are: Allard of St. Albans Town Edwards of Brattleboro Johnson of South Hero Aswad of Burlington Emmons of Springfield Keenan of St. Albans City Atkins of Winooski French of Randolph Kiss of Burlington Audette of South Burlington Haas of Rutland City Larson of Burlington Bohi of Hartford Head of South Burlington Lippert of Hinesburg Cross of Winooski Hingtgen of Burlington Maier of Middlebury Darrow of Dummerston Howrigan of Fairfield Marek of Newfane Donahue of Northfield Hummel of Underhill Masland of Thetford

JOURNAL OF THE HOUSE 112 McCullough of Williston Partridge of Windham Shand of Weathersfield McLaughlin of Royalton Peaslee of Guildhall Sharpe of Bristol Milkey of Brattleboro Pillsbury of Brattleboro Sheltra of Derby Molloy of Arlington Pugh of South Burlington Sweaney of Windsor Nease of Johnson Rodgers of Glover Symington of Jericho Nuovo of Middlebury Rogers of Castleton Tracy of Burlington Obuchowski of Rockingham Seibert of Norwich Zuckerman of Burlington Those members absent with leave of the House and not voting are: Brennan of Colchester Gervais of Enosburg Johnson of Canaan Deen of Westminster Grad of Moretown Larrabee of Danville Donovan of Burlington Hunt of Essex Schiavone of Shelburne Freed of Dorset Jewett of Ripton Waite of Pawlet

Rep. DePoy of Rutland City explained his vote as follows: “Mr. Speaker: I don’t like this bill much. However, I vote yes because the dog spay and neuter is a good idea, I just don’t like its mandatory $2.00 fee. I think it should be an optional fee.” Rep. Donahue of Northfield explained her vote as follows: “Mr. Speaker: The day needs to come that we draw the line on creating policy in the wrong way, in the wrong place and at the wrong time. We put it off to the detriment of our duties as Representatives.” Rep. Seibert of Norwich explained her vote as follows: “Mr. Speaker: We should all be concerned when important decisions on weighty issues shifts between a Friday night and a Wednesday morning (the next convening day) and a committee vote changes from 9-1-1- against to a vote of 7-4 in favor with no testimony other than that of a very limited concerned party.” Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twentieth day of May, 2004, he approved and signed bills originating in the House of the following title: 113 THURSDAY, MAY 20, 2004 H. 364 An act relating to amendment of the Northeast Kingdom Waste Management District Charter H. 769 An act relating to approval of amendment to the Bennington School District Charter H. 774 An act relating to the Charter of the City of Rutland H. 776 An act relating to the Baltimore, Cavendish and Weathersfield Town lines H. 782 An act relating to Bolton Fire District No. 1 Rules Suspended; Report of Committee of Conference Adopted; Rules Suspended and Bill Messaged to Senate Forthwith S. 311 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Partridge of Windham, the rules were suspended and Senate bill, entitled An act to making miscellaneous changes in statutes affecting the Vermont Agency of Transportation Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill 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 further amended by striking out all after the enacting clause and inserting in lieu thereof the following: * * * Act 250 Applications * * * Sec. 1. 10 V.S.A. § 6083(f) is amended to read: (f) In situations where the party seeking to file an application is a state agency, municipality or a, solid waste management district empowered to condemn the involved land or an interest in it, then the application need only be signed by that party.

JOURNAL OF THE HOUSE 114 * * * State Highway Law; Definitions; State Traffic Committee * * * Sec. 2. 19 V.S.A. § 1 is amended to read: § 1. DEFINITIONS For the purposes of this chapter title: * * * (22) “Traffic committee” consists of the secretary of transportation or his or her designee, commissioner of motor vehicles or his or her designee, and the commissioner of public safety or his or her designee and is responsible for establishing speed zones, parking and no parking areas, regulations for use of limited access highways, and other traffic control procedures. * * * Sec. 3. 23 V.S.A. § 1003 is amended to read: § 1003. STATE SPEED ZONES When a the traffic committee composed of the secretary of transportation, the commissioner of public safety and the commissioner of motor vehicles constituted under 19 V.S.A. § 1(22) determines, on the basis of an engineering and traffic investigation, that a maximum speed limit established by this chapter is greater or less than is reasonable or safe under conditions found to exist at any place or upon any part of a state highway, except the national system of interstate and defense highways, it may determine and declare a reasonable and safe limit which is effective when appropriate signs stating the limit are erected. This limit may be declared to be effective at all times or at times indicated upon the signs; and differing limits may be established for different times of day, different types of vehicles, varying weather conditions, or based on other factors, bearing on safe speeds which are effective when posted upon appropriate fixed or alterable signs. * * * Crosswalks * * * Sec. 4. 19 V.S.A. § 905b is amended to read: § 905b. CROSSWALKS All crosswalk markings shall be of uniform color, dimension, and location and be in conformance with the United States Department of Transportation Federal Highway Administrations’ Manual on Uniform Traffic Control Devices. The secretary of the agency of transportation shall promulgate rules to implement the provisions of this section. Sec. 5. REPEAL 115 THURSDAY, MAY 20, 2004 The agency of transportation’s “guidelines for the installation of crosswalk markings and pedestrian signs at marked and unmarked crossings” (effective July 10, 1995; secretary of state rule log #95-44) are hereby repealed. Sec. 6. 23 V.S.A. § 1052(a) is amended to read: (a) Every pedestrian crossing a roadway at any point other than within a marked crosswalk at an intersection shall yield the right of way right-of-way to all vehicles upon the roadway. * * * Parking for Disabled Persons; Penalties * * * Sec. 7. 23 V.S.A. § 304a(e) is amended to read: (e) A person, other than a person with a disability, who for his or her own purposes parks a vehicle in a space for persons with disabilities shall be fined $25.00 $100.00 for each violation and shall be liable for towing charges. He or she shall also be liable for storage charges not to exceed $2.00 $12.00 per day, and an artisan’s lien may be imposed against the vehicle for payment of the charges assessed. The person in charge of the parking space or spaces for persons with a disability or any duly authorized law enforcement officer shall cause the removal of a vehicle parked in violation of this section. A violation of this section shall be considered a traffic violation within the meaning of chapter 24 29 of this title Title 4. Committee on the Part of Committee on the Part of the Senate the House Sen. Philip Scott Rep. Janice Peaslee Sen. Claire Ayer Rep. Alice Emmons Sen. Donald Collins Rep. John Winters Which was considered and adopted on the part of the House. On motion of Rep. Symington of Jericho, the rules were suspended and the bill was ordered messaged to the Senate forthwith. Message from the Senate No. 74 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses upon Senate bills of the following titles: S. 79. An act relating to joint tenancy

JOURNAL OF THE HOUSE 116 S. 227. An act relating to sex offender registration and community notification. And has accepted and adopted the same on its part. The Senate has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses upon House bill of the following title: H. 201. An act relating to a farm viability program. And has accepted and adopted the same on its part. The Senate has on its part adopted a joint resolution of the following title: J.R.S. 67. Joint resolution relating to final adjournment of the General Assembly in 2004. In the adoption of which the concurrence of the House is requested. Rules Suspended; Consideration Interrupted by Recess H. 768 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Partridge of Windham, the rules were suspended and House bill, entitled An act making appropriations for the support of government; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate 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 (a) This bill may be referred to as the BIG BILL - Fiscal Year 2005 Appropriations Act. Sec. 2. PURPOSE (a) The purpose of this act is to provide appropriations for the operations of state government during fiscal year 2005. It is the express intent of the legislature that activities of the various agencies, departments, divisions, boards, and commissions be limited to those which can be supported by funds 117 THURSDAY, MAY 20, 2004 appropriated in this act or other acts passed prior to June 30, 2004. Agency and department heads are directed to implement staffing and service levels at the beginning of fiscal year 2005 so as to meet this condition unless otherwise directed by specific language in this act. Sec. 3. APPROPRIATIONS (a) 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 declared to be single-year appropriations and only for the purpose indicated. These appropriations shall be the only appropriations available notwithstanding any other acts or laws. 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. (b) Unless codified or otherwise specified, all narrative portions of this act apply only to the fiscal year ending June 30, 2005. Sec. 4. TIME AVAILABLE (a) The sums appropriated in this act, unless otherwise designated, shall be available only during the fiscal year ending June 30, 2005. The balance of any appropriations made in this act remaining unexpended and unencumbered at the end of the fiscal year shall revert to the appropriate fund balance unless otherwise specified in this act. Refunds of expenditures and reimbursements, except liability insurance premiums which have been paid from the appropriations of a prior year, shall be credited to the appropriate fund and not to appropriation accounts in the current fiscal year, unless those refunds or reimbursements were previously paid from federal grants-in-aid or from appropriations whose unexpended balances are reappropriated by law. Refunds of liability insurance premiums paid in prior fiscal years are hereby available to reduce subsequent liability insurance premiums. Nothing contained in this act shall limit the time within which an appropriation to be raised by the issue of bonds may be expended. Sec. 5. 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

JOURNAL OF THE HOUSE 118 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. (3) “Operating expenses” means supplies - food, medical, clothing, educational, fuel, highway materials and similar items; contractual services - postage, telephone, travel expenses, light, heat and power, rentals, insurance and other similar items; equipment articles of substantial value which have a long period of usefulness - desks, computers, typewriters, furniture, motor vehicles and similar items; and expenditures for the purchase of land, construction of new buildings and permanent improvements, highway construction and similar items. (4) “Personal services” means wages and salaries, consulting services, personnel benefits, personal injury benefits under 21 V.S.A. § 636, and similar items. Sec. 6. SOURCE OF FUNDS (a) The appropriations made in this act are made for the fiscal year ending June 30, 2005 except as provided in this act and are to be paid from funds shown as the source of funds. Sec. 7. Secretary of administration - secretary’s office Personal services 385,524 Operating expenses 58,878 Total 444,402 Source of Funds General fund 381,798 Transportation fund 49,704 Interdepartmental transfer 12,900 Total 444,402 Sec. 8. Information and innovation Personal services 3,747,066 Operating expenses 811,915 Total 4,558,981 Source of Funds Internal service funds 4,558,981 (a) The secretary of administration shall develop a process whereby the department of information and innovation shall be consulted and shall issue a written recommendation prior to any agency or department in the executive branch of state government’s action to: (1) expend or contract for the 119 THURSDAY, MAY 20, 2004 expenditure of an amount that is greater than an amount determined by the secretary of administration for information systems technology; or (2) hire additional information technology staff. Said recommendation shall be retained by the agency or department. Sec. 9. Finance and management - financial operations Personal services 2,033,673 Operating expenses 1,135,021 Total 3,168,694 Source of Funds Internal service funds 3,168,694 (a) Pursuant to 32 V.S.A. § 307(e), financial management fund charges of $3,980,857.00 are hereby approved. Of this amount, $767,163.00 will be used to support the HRMS system that is operated by the department of personnel. Sec. 10. 32 V.S.A. § 307(e) is amended to read: (e) The budget shall also include any proposed charges to be billed to departmental budgets for payment to the financial management, workers’ compensation, and facilities operations internal service funds where the total of such charges exceeds $1,000,000.00. The rates of any such. Such charges shall be subject to legislative approval. The departments of finance and management and buildings and general services shall include with their annual budget submissions details of any such charges to be made projected by department and the financial case for the proposed changes in charges for the three internal services funds. Sec. 11. Finance and management - budget and management Personal services 870,222 Operating expenses 101,766 Total 971,988 Source of Funds General fund 772,314 Transportation fund 110,428 Interdepartmental transfer 89,246 Total 971,988 (a) Notwithstanding 32 V.S.A § 588, the commissioner of finance and management is encouraged to minimize the number of special funds that are created in the statewide accounting system each fiscal year, to eliminate any redundancies with currently establishe d special funds and to the extent possible, consolidate overlapping funds. (b) The commissioner shall submit a report to the joint fiscal committee by

JOURNAL OF THE HOUSE 120 December 1, 2004 on actions taken that do not require legislative approval and shall also include in the report recommendations to the general assembly for statutory amendments to simplify fund administration. Sec. 12. Personnel - operations Personal services 1,489,050 Operating expenses 296,200 Total 1,785,250 Source of Funds General fund 1,113,729 Transportation fund 342,921 Interdepartmental transfer 328,600 Total 1,785,250 (a) The department of personnel shall include in its annual report historical information on position reclassifications throughout state government and shall submit with its fiscal year 2006 budget proposal a recommendation for creating a structured, predictable approach to dealing with the reclassification issue. Sec. 13. Personnel - HR workforce planning & employment services Personal services 754,361 Operating expenses 302,850 Total 1,057,211 Source of Funds General fund 634,000 Transportation fund 200,211 Special funds 223,000 Total 1,057,211 Sec. 14. Personnel - employee benefits & wellness Personal services 1,329,731 Operating expenses 237,870 Total 1,567,601 Source of Funds Internal service funds 1,567,601 Sec. 15. Personnel - information technology Personal services 486,683 Operating expenses 280,480 Total 767,163 Source of Funds Internal service funds 767,163 121 THURSDAY, MAY 20, 2004 Sec. 16. Libraries Personal services 1,908,066 Operating expenses 1,479,087 Grants 45,000 Total 3,432,153 Source of Funds General fund 2,331,998 Special funds 195,483 Federal funds 752,672 Interdepartmental transfer 152,000 Total 3,432,153 Sec. 17. Tax - administration/collection Personal services 11,058,247 Operating expenses 2,559,467 Total 13,617,714 Source of Funds General fund 12,651,812 Transportation fund 211,902 Special funds 574,000 Interdepartmental transfer 180,000 Total 13,617,714 Sec. 18. Buildings and general services - administration Personal services 1,327,980 Operating expenses 127,665 Total 1,455,645 Source of Funds Interdepartmental transfer 1,455,645 (a) The implementation of the buildings and general services fleet management program shall be done in a manner to avoid any negative fiscal impact to the department of corrections. Sec. 18a. MUNICIPAL AND NONPROFIT ASSISTANCE PROGRAM (a) There is created a municipal and nonprofit assistance program to provide competitive grants to municipalities and nonprofit organizations throughout the state. The program shall be funded through direct appropriations of the general assembly. The commissioner of buildings and general services is authorized to award grants at his or her discretion consistent with the provisions of this section. The department of buildings and general services shall administer the program and is hereby authorized to adopt rules

JOURNAL OF THE HOUSE 122 that are necessary for implementation of the program and consistent with the provisions of this section, including a list of criteria by which applications will be evaluated. Sec. 19. COMMUNITY ASSISTANCE PROGRAM (a) There is created a community assistance program to provide grants to communities and nonprofit organizations throughout the state. The program shall be funded through direct appropriations of the general assembly. The commissioner of buildings and general services is authorized to award grants at his or her discretion consistent with the provisions of this section. The department of buildings and general services shall administer the program. Sec. 20. Buildings and general services - engineering Personal services 1,836,763 Operating expenses 403,666 Total 2,240,429 Source of Funds General fund 2,013,413 Transportation fund 152,016 Interdepartmental transfer 75,000 Total 2,240,429 Sec. 21. Buildings and general services - information centers Personal services 2,805,473 Operating expenses 1,141,005 Grants 350,000 Total 4,296,478 Source of Funds General fund 197,186 Transportation fund 4,099,292 Total 4,296,478 Sec. 22. Buildings and general services - purchasing Personal services 764,564 Operating expenses 259,591 Total 1,024,155 Source of Funds General fund 762,555 Transportation fund 261,600 Total 1,024,155 Sec. 23. Buildings and general services - public records 123 THURSDAY, MAY 20, 2004 Personal services 766,755 Operating expenses 460,809 Total 1,227,564 Source of Funds General fund 961,726 Transportation fund 88,205 Special funds 177,633 Total 1,227,564 Sec. 24. Buildings and general services - postal services Personal services 579,783 Operating expenses 141,803 Total 721,586 Source of Funds General fund 39,135 Transportation fund 26,400 Internal service funds 656,051 Total 721,586 Sec. 25. Buildings and general services - copy center Personal services 751,421 Operating expenses 457,602 Total 1,209,023 Source of Funds Internal service funds 1,209,023 Sec. 26. Buildings and general services - supply center Personal services 243,949 Operating expenses 196,641 Total 440,590 Source of Funds Internal service funds 440,590 Sec. 27. Buildings and general services - federal surplus property Personal services 60,254 Operating expenses 70,525 Total 130,779 Source of Funds Enterprise funds 130,779 Sec. 28. Buildings and general services - state surplus property Personal services 54,229

JOURNAL OF THE HOUSE 124 Operating expenses 67,342 Total 121,571 Source of Funds Internal service funds 121,571 Sec. 29. Buildings and general services - property management Personal services 928,056 Operating expenses 3,304,043 Total 4,232,099 Source of Funds Internal service funds 4,232,099 Sec. 30. Buildings and general services - all other insurance Personal services 58,529 Operating expenses 11,116 Total 69,645 Source of Funds Internal service funds 69,645 Sec. 31. Buildings and general services - general liability insurance Personal services 704,745 Operating expenses 31,986 Total 736,731 Source of Funds Internal service funds 736,731 Sec. 32. Buildings and general services - workers’ compensation insurance Personal services 950,903 Operating expenses 132,611 Total 1,083,514 Source of Funds Internal service funds 1,083,514 (a) Pursuant to 32 V.S.A. § 307(e), workers’ compensation fund charges of $9,565,000.00 are hereby approved. Sec. 33. 29 V.S.A. § 1408(d) is amended to read: (d) In subsequent years, the commissioner shall annually assess each program participant an amount to be deposited in the state employees’ workers’ compensation fund. The commissioner may adjust the annual assessment to assure that the debts and obligations of the program are adequately funded. However, the annual assessment shall not be greater than 150 percent or less than 50 percent of the annual assessment for that program 125 THURSDAY, MAY 20, 2004 participant for the preceding year. Sec. 34. [Deleted] Sec. 35. Buildings and general services - fee for space Personal services 9,079,294 Operating expenses 9,018,740 Total 18,098,034 Source of Funds Internal service funds 18,098,034 (a) Pursuant to 29 V.S.A. § 160a(b)(3), facilities operations fund charges of $18,445,000.00 are hereby approved. Sec. 36. Sec. 35(a) of No. 66 of the Acts of 2003 is amended to read: (a) Pursuant to 29 V.S.A. § 160a(b)(3), fee for space charges of $16,934,155.00 are hereby approved. The commissioner of buildings and general services shall cause any deficit in the fee for space internal service fund at the end of fiscal year 2003 to be eliminated by the end of fiscal year 2014 through the aggressive management of expenditures and a surcharge on fees beginning in fiscal year 2005 2006. Sec. 37. Geographic information system Grants 376,992 Source of Funds Special funds 376,992 Sec. 38. Auditor of accounts Personal services 1,844,953 Operating expenses 109,150 Total 1,954,103 Source of Funds General fund 453,732 Transportation fund 58,845 Special funds 52,746 Internal service funds 1,388,780 Total 1,954,103 Sec. 39. State treasurer Personal services 2,380,971 Operating expenses 322,205 Grants 75,000 Total 2,778,176

JOURNAL OF THE HOUSE 126 Source of Funds General fund 833,409 Transportation fund 103,208 Special funds 1,378,559 Pension trust fund 400,500 Private purpose trust fund 62,500 Total 2,778,176 (a) The above appropriation includes $50,000.00 in general funds, which shall be used for a grant to the firefighters survivors benefit expendable trust fund. (b) Of the above general fund appropriation, $25,000.00 shall be deposited into the armed services scholarship fund established in H.258 of 2004. Sec. 40. State treasurer - abandoned property Personal services 262,922 Operating expenses 194,800 Total 457,722 Source of Funds Private purpose trust fund 457,722 Sec. 41. Vermont state retirement system Personal services 18,068,186 Operating expenses 699,809 Total 18,767,995 Source of Funds Pension trust fund 18,767,995 Sec. 42. Municipal employees’ retirement system Personal services 1,426,248 Operating expenses 206,527 Total 1,632,775 Source of Funds Pension trust fund 1,632,775 Sec. 43. State labor relations board Personal services 147,387 Operating expenses 34,740 Total 182,127 Source of Funds General fund 171,697 Transportation fund 4,560 127 THURSDAY, MAY 20, 2004 Special funds 5,870 Total 182,127 Sec. 44. REVERSION TO GENERAL FUND (a) Notwithstanding any other provision of law, $20,000.00 in general funds appropriated in Sec. 42 of No. 66 of the Acts of 2003 to the state labor relations board shall revert to the general fund in fiscal year 2005. Sec. 45. Executive office - Governor’s office Personal services 1,123,181 Operating expenses 339,100 Total 1,462,281 Source of Funds General fund 1,141,866 Transportation fund 156,230 Special funds 3,185 Interdepartmental transfer 161,000 Total 1,462,281 Sec. 46. Executive office - national and community service Personal services 175,347 Operating expenses 118,501 Grants 1,443,340 Total 1,737,188 Source of Funds General fund 56,528 Federal funds 1,680,660 Total 1,737,188 Sec. 47. VOSHA review board Personal services 31,350 Operating expenses 8,844 Total 40,194 Source of Funds General fund 20,097 Federal funds 20,097 Total 40,194 Sec. 48. Use tax reimbursement fund - municipal current use Grants 6,199,670 Source of Funds General fund 3,889,280

JOURNAL OF THE HOUSE 128 Transportation fund 2,310,390 Total 6,199,670 Sec. 49. Lieutenant governor Personal services 125,062 Operating expenses 9,585 Total 134,647 Source of Funds General fund 115,517 Transportation fund 19,130 Total 134,647 Sec. 50. [Deleted] Sec. 51. Legislature Personal services 2,665,198 Operating expenses 1,967,116 Total 4,632,314 Source of Funds General fund 3,935,297 Transportation fund 697,017 Total 4,632,314 (a) Of the above appropriation, $15,000.00 shall be used for a grant to the national legislative association on prescription drug pricing. The payment of any additional funds to the association must be approved by the president pro tempore of the senate and the speaker of the house. Sec. 51a. 2004 LEGISLATIVE SESSION; DAILY COMPENSATION (a) In lieu of the weekly salary entitlement in sections 1051 and 1052 of Title 32, after May 15, 2004, a member of the house or senate is entitled to reimbursement for expenses and compensation for services at the daily rate provided in those sections for each day of attendance at a session of the 2004 adjourned session, and for attendance at a meeting of a committee of conference on any day on which the member’s chamber is not in session after May 15, 2004 through adjournment sine die of the 2004 adjourned session. Sec. 52. Legislative council Personal services 1,575,895 Operating expenses 116,222 Total 1,692,117 Source of Funds General fund 1,460,193 129 THURSDAY, MAY 20, 2004 Transportation fund 231,924 Total 1,692,117 Sec. 52a. Legislative information technology Personal services 226,325 Operating expenses 287,959 Total 514,284 Source of Funds General fund 514,284 (a) Funds appropriated in this section for legislative information technology shall be expended in fiscal year 2005 by the legislative council with the recommendation of the ad hoc joint legislative oversight committee on information technology and a staff oversight group consisting of the legislative counsel, the fiscal officer, the sergeant at arms, the clerk of the house, and the secretary of the senate. On or before January 15, 2005, the ad hoc joint committee and the staff oversight group shall present to the house and senate committees on appropriations and government operations a plan for the oversight, management, and expenditure of funds for information technology by the legislative branch for fiscal year 2006 and future fiscal years. As part of this process, the legislative and staff oversight group shall develop job descriptions for information technology employees, work plans, and specific strategies to address the recommendations contained in the NCSL assessment of the Vermont Legislative Information Technology System. Sec. 53. Sergeant at arms Personal services 449,154 Operating expenses 47,662 Total 496,816 Source of Funds General fund 456,405 Transportation fund 40,411 Total 496,816 (a) The sergeant at arms office shall submit to the joint fiscal committee at its July 2004 meeting, a summary of the security coverage plan for fiscal year 2005. Minimizing the amount of overtime and duplicative coverage shall be a priority in development of the plan. The summary submitted shall include the hours and number of persons for the hours of coverage proposed. Sec. 54. Joint fiscal committee Personal services 898,960 Operating expenses 67,224

JOURNAL OF THE HOUSE 130 Total 966,184 Source of Funds General fund 831,789 Transportation fund 134,395 Total 966,184 Sec. 55. Lottery commission Personal services 1,253,912 Operating expenses 903,902 Total 2,157,814 Source of Funds Enterprise funds 2,157,814 (a) The lottery commission shall not reduce funding for the responsible gambling program. (b) The lottery commission shall transfer $90,000.00 to the department of health, office of alcohol and drug abuse programs to support the gambling addiction program. Sec. 56. Payments in lieu of taxes Grants 2,500,000 Source of Funds General fund 800,000 Special funds 1,700,000 Total 2,500,000 (a) The above appropriation is for state payments in lieu of property taxes under 32 V.S.A. chapter 123, subchapter 4, 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. 57. Payments in lieu of taxes - Montpelier Grants 184,000 Source of Funds General fund 184,000 Sec. 58. Payments in lieu of taxes - correctional facilities Grants 40,000 Source of Funds General fund 40,000 Sec. 59. Total general government 117,366,399 Source of Funds 131 THURSDAY, MAY 20, 2004 General fund 36,763,760 Transportation fund 9,298,789 Special funds 4,687,468 Federal funds 2,453,429 Enterprise funds 2,288,593 Internal service funds 38,098,477 Pension trust funds 20,801,270 Private purpose trust funds 520,222 Interdepartmental transfer 2,454,391 Total 117,366,399 Sec. 60. Protection to persons and property - attorney general Personal services 4,838,548 Operating expenses 898,080 Total 5,736,628 Source of Funds General fund 2,550,429 Transportation fund 69,061 Special funds 1,014,901 Tobacco fund 290,000 Federal funds 573,500 Interdepartmental transfer 1,238,737 Total 5,736,628 Sec. 61. Vermont court diversion Grants 1,470,071 Source of Funds General fund 927,238 Transportation fund 142,833 Special funds 400,000 Total 1,470,071 Sec. 62. Center for crime victims services Personal services 1,159,300 Operating expenses 353,286 Grants 7,246,000 Total 8,758,586 Source of Funds General fund 963,878 Special funds 3,400,000 Federal funds 4,332,208 Interdepartmental transfer 62,500

JOURNAL OF THE HOUSE 132 Total 8,758,586 (a) The center shall convene a supervised visitation advisory board which will consist of a representative from the department of social and rehabilitation services, the agency of human services, the office of child support, the Vermont network against domestic violence and sexual assault, and the center for crime victims services. The advisory board will assist in the design of a program evaluation for all supervised visitation programs in Vermont prior to the allocation of fiscal year 2005 funding, make decisions regarding the allocation of fiscal year 2005 funding to supervised visitation programs in Vermont, and study and report to the general assembly on January 1, 2005 their recommendation as to the most appropriate state agency to provide oversight and administer state funding for supervised visitation programs in Vermont, and develop standards of service to ensure high quality services to families utilizing supervised visitation programs in Vermont. Of the above general fund appropriation, $10,000.00 shall be used for program evaluation of the supervised visitation programs in Vermont. (b) Of the above general fund appropriation, $100,000.00 shall be used for grants to the supervised visitation programs pursuant to the recommendations of the advisory board. (c) Of the above general fund appropriation, $75,000.00 shall be used for grants to the four existing child advocacy centers. These funds shall be distributed in accordance with a plan developed by the center for crime victims services in collaboration with the child advocacy centers. The center for crime victims services, the department of social and rehabilitation services, and the agency of human services shall work collaboratively to make recommendations for sustaining services provided by the four child advocacy centers. Sec. 63. State’s attorneys Personal services 7,600,224 Operating expenses 1,158,953 Total 8,759,177 Source of Funds General fund 6,665,235 Transportation fund 366,373 Special funds 53,599 Federal funds 5,000 Interdepartmental transfer 1,668,970 Total 8,759,177 Sec. 64. Sheriffs 133 THURSDAY, MAY 20, 2004 Personal services 2,540,882 Operating expenses 312,166 Total 2,853,048 Source of Funds General fund 2,287,344 Transportation fund 565,704 Total 2,853,048 (a) Of the above appropriation, $15,000.00 shall be transferred to the state’s attorneys office as reimbursement for the cost of the executive director’s salary. (b) The state’s attorneys, sheriffs, defender general, judiciary, and corrections departments shall implement the findings of the 2002 study of prisoner transport with a goal to managing transport within current appropriations. In the event that a department fails to cooperate or provide timely notification of changes in transportation needs, the costs shall be absorbed by the department. A report on the implementation of prisoner transport recommendations shall be submitted to the general assembly on January 15, 2005. Sec. 65. Defender general - public defense Personal services 5,361,146 Operating expenses 671,125 Total 6,032,271 Source of Funds General fund 4,974,854 Transportation fund 489,388 Special funds 502,629 Federal funds 2,250 Interdepartmental transfer 63,150 Total 6,032,271 (a) The defender general is authorized to establish and fill four (4) positions to conduct activities related to prisoner rights services: two (2) new permanent exempt Attorneys, one (1) new permanent classified Investigator, and one (1) new permanent classified Support Secretary. These positions shall be transferred and converted from existing vacant positions in the executive branch of state government. Sec. 66. Defender general - assigned counsel Personal services 2,599,693 Operating expenses 51,675 Total 2,651,368

JOURNAL OF THE HOUSE 134 Source of Funds General fund 2,312,130 Transportation fund 239,238 Special funds 100,000 Total 2,651,368 Sec. 67. Military - administration Personal services 442,365 Operating expenses 199,963 Grants 143,683 Total 786,011 Source of Funds General fund 786,011 (a) Of the above appropriation, $200,000.00 shall be transferred to the Vermont student assistance corporation for the national guard scholarship program, which comprises $170,694.00 of the above appropriation and $29,306.00 carry-forward fiscal year 2004 funds. (b) Total grants under 16 V.S.A. chapter 87, subchapter 4A shall not exceed $200,000.00 in fiscal year 2005 nor shall commitments or obligations be made for expenditure amounts above $200,000.00 in fiscal year 2006. Sec. 68. Military - air service contract Personal services 3,731,755 Operating expenses 886,961 Total 4,618,716 Source of Funds General fund 344,459 Federal funds 4,274,257 Total 4,618,716 Sec. 69. Military - army service contract Personal services 2,565,304 Operating expenses 8,176,700 Total 10,742,004 Source of Funds General fund 115,581 Federal funds 10,626,423 Total 10,742,004 Sec. 70. Military - building maintenance Personal services 846,956 135 THURSDAY, MAY 20, 2004 Operating expenses 415,444 Total 1,262,400 Source of Funds General fund 1,262,400 Sec. 71. Military - veterans’ affairs Personal services 206,015 Operating expenses 70,000 Grants 126,165 Total 402,180 Source of Funds General fund 402,180 (a) Of the above appropriation, $15,000.00 shall be used for continuation of the Vermont Medal Program, $14,000.00 shall be used to increase the funding for the Needy Veterans’ Fund, $10,000.00 shall be used to provide assistance to the survivors of casualties in the War on Terrorism, $10,000.00 shall be used for the expenses of the Governor’s Veterans’ Advisory Council, and $15,000.00 shall be used for the Veterans’ Day Parade. (b) Of the above appropriation, $5,000.00 shall be granted to the Vermont state council of the Vietnam Veterans of America to fund the service officer program. The council shall provide to the house and senate committees on appropriations a report on the expenditure of these funds by January 15, 2005. (c) Of the above appropriation, $25,000.00 shall be used to fund one half - time Veterans’ Service Officer to assist Vermont veterans who apply for state and federal veterans’ benefits. Sec. 72. Sec. 72b of No. 66 of the Acts of 2003 as amended by Sec. 16 of H.585 of 2004 is further amended to read: Sec. 72b. ONE-TIME APPROPRIATION; SURVIVORS OF CASUALTIES OF WAR ON TERRORISM (a) There is appropriated $13,500.00 in general funds to the military department, division of veterans’ affairs, to be used to support Vermont families related to military members killed who have died or been wounded while serving in a combat theater of operations or traveling to and from the combat theater. Combat theaters include but are not limited to Iraq and Afghanistan. The military department and division of veterans’ affairs will develop additional program guidelines as necessary to meet the intent of this appropriation. Any funds remaining at the end of fiscal year 2004 shall carry forward into fiscal year 2005 to be used as needed to continue this program. * * *

JOURNAL OF THE HOUSE 136 Sec. 73. Labor and industry Personal services 5,618,018 Operating expenses 1,325,500 Grants 75,000 Total 7,018,518 Source of Funds General fund 913,722 Special funds 4,975,015 Federal funds 1,080,648 Interdepartmental transfer 49,133 Total 7,018,518 Sec. 74. Criminal justice training council Personal services 794,955 Operating expenses 730,204 Total 1,525,159 Source of Funds General fund 647,358 Transportation fund 279,677 Special funds 464,724 Interdepartmental transfer 133,400 Total 1,525,159 Sec. 75. Liquor control - enforcement and licensing Personal services 1,483,036 Operating expenses 195,633 Total 1,678,669 Source of Funds Tobacco fund 290,000 Enterprise funds 1,388,669 Total 1,678,669 (a) The above tobacco fund appropriation shall be used for the sole purpose of education and enforcement with priority given to education. The department shall report on the use of these funds to the house and senate committees on appropriations by December 15, 2004. The department of liquor control shall continue its obligations under Act 58 of 1997 to conduct, or contract for, compliance tests to assure consistent statewide compliance with the prohibition on sales of tobacco products to minors of at least 90 percent for 17-year-old buyers. (b) The department shall not implement a "shoulder tap" program without 137 THURSDAY, MAY 20, 2004 the consent of the general assembly or the joint fiscal committee when the general assembly is not in session. Sec. 76. Liquor control - administration Personal services 1,845,481 Operating expenses 529,830 Total 2,375,311 Source of Funds Enterprise funds 2,375,311 (a) Beginning with fiscal year 2006, the administration shall submit the department of liquor control’s budget to the general assembly with the function of warehousing and distribution broken out as a separate appropriation section within the omnibus appropriations bill. Sec. 76a. STUDY OF CONTRACTING FOR CERTAIN DEPARTMENT OF LIQUOR CONTROL FUNCTIONS (a) The secretary of administration shall determine whether contracting for the importation, transportation, warehousing, and wholesale distribution of liquor is projected to res ult in overall cost savings to the state. (b) The secretary of administration may employ a consultant to conduct a study of the liquor importation, transportation, warehousing, and wholesale distribution functions of the department of liquor control. (c) In orde r to conduct the study, the secretary of administration and any contractor conducting the study on behalf of the secretary shall receive the full cooperation of the department of liquor control and its personnel. All records of the department of liquor control the secretary deems necessary to complete the study shall be made available to the secretary and the contractor. (d) Any contract entered into pursuant to the provisions of this section shall be paid for from the revenues of the department of liquor co ntrol. (e) The secretary of administration shall report the results of this study to the general assembly by January 15, 2005. Sec. 76b. REPORT ON THE EXPANSION OF THE VERMONT LIQUOR CONTROL BOARD (a) The commissioner of the department of liquor control shall establish a task force and host up to three meetings to determine the efficacy of expanding the Vermont liquor control board to include two licensees. The task force shall be chaired by the commissioner of the department of liquor control and will be made up of members of the liquor control board, a member of the house of representatives appointed by the speaker of the house and a member of the

JOURNAL OF THE HOUSE 138 senate, appointed by the committee on committees, a 1 st class licensee who is a representative of the Vermont lodging and restaurant association, and a 2 nd class licensee who is a member of the Vermont grocers’ association. The task force shall make recommendations for expansion of the liquor control board to the house committee on general and military affairs and the senate committee on economic development, housing and general affairs on or before January 15, 2005. Sec. 77. Vermont racing commission Personal services 2,076 Operating expenses 2,924 Total 5,000 Source of Funds General fund 5,000 Sec. 78. Secretary of state Personal services 3,214,056 Operating expenses 2,151,149 Total 5,365,205 Source of Funds General fund 928,352 Special funds 3,542,965 Federal funds 818,888 Interdepartmental transfer 75,000 Total 5,365,205 (a) The corporation division of the secretary of state’s office represents $438,903.00 of the above special fund appropriation, and these funds shall be from the securities regulation and supervision fund in accordance with 9 V.S.A. § 4230(b). Sec. 78a. 24 V.S.A. chapter 135 is added to read: CHAPTER 135. VERMONT MUNICIPAL LAND RECORDS COMMISSION § 5401. STATEMENT OF PURPOSE Municipal land records are of vital importance to the economy and history of Vermont. This chapter establishes a municipal land records commission to address the significant long-term and systemic managerial issues associated with these documents, including a study to determine whether paper documents should be stored and available in an electronic format. § 5402. DEFINITIONS 139 THURSDAY, MAY 20, 2004 As used in this chapter: (1) “Commission” means the Vermont municipal land records commission created in section 5403 of this title. (2) “Municipal” means a city, town, unorganized town, incorporated village, or gore. (3) “Municipal land record” means a document required to establish marketable title and which is filed or recorded in the records of a municipality, including all documents filed or recorded pursuant to section 1154 of this title. § 5403. MUNICIPAL LAND RECORDS COMMISSION; CREATION AND COMPOSITION (a) There is created the Vermont municipal land records commission which shall be attached to the office of the secretary of state for administrative purposes and whose appointed members shall serve for three-year terms, except for initial terms as provided for in subsection (b) of this section. (b) The commission shall consist of the state archivist, the commissioner of buildings and general services, and the commissioner of information and innovation, or their designees. In addition, the governor shall appoint three municipal clerks, with one representing municipalities with a population of greater than 10,000 residents for an initial term of two years, one representing municipalities with a population of greater than 3,000 residents but fewer than 10,000 residents for an initial term of three years, and one representing municipalities with a population of fewer than 3,000 residents for an initial term of four years; one licensed land surveyor to be recommended by the Vermont Society of Land Surveyors for an initial term of three years; two licensed attorneys to be recommended by the Vermont Bar Association, one of whom shall be familiar with real estate title practices for an initial term of two years and one of whom shall be a representative of the title insurance industry for an initial term of four years; one paralegal to be recommended by the Vermont Paralegal Organization for an initial term of three years; one municipal zoning administrator to be recommended by the Vermont League of Cities and Towns for an initial term of three years; one municipal legislator or chief municipal administrative officer to be recommended by the Vermont League of Cities and Towns for a term of two years; one banker jointly recommended by the Vermont Bankers Association and the Vermont Mortgage Bankers Association for an initial term of four years; one lister or assessor to be recommended by the Vermont Association of Listers and Assessors for an initial term of four years; and one licensed real estate broker to be recommended by the Vermont Association of Realtors for a term of two years.

JOURNAL OF THE HOUSE 140 (c) The designated organizations shall submit their recommendations for commission members to the governor on or before July 31, 2004, and the governor shall appoint the members of the commission by September 15, 2004. In appointing individuals to this commission, the governor shall seek geographic diversity. (d) The state archivist shall convene the first commission meeting no later than November 1, 2004, at which meeting the commission shall designate a chair and vice chair. The governor shall designate a chair and vice chair if the commission has failed to so designate by the 30th day following its first meeting. (e) The members of the commission who are not employees of the state of Vermont shall be entitled to per diem compensation as provided in section 1010 of Title 32. Sec. 78b. 32 V.S.A. § 1010(a) is amended to read: § 1010. MEMBERS OF CERTAIN BOARDS (a) Except for those members serving ex officio or otherwise regularly employed by the state, the compensation of the members of the following boards shall be $50.00 per diem: * * * (30) Community high school of Vermont board (31) Municipal land records commission. Sec. 78c. VERMONT MUNICIPAL LAND RECORDS COMMISSION; REPORT (a) On or before January 15, 2006, the Vermont municipal land records commission shall submit a report to the general assembly that: (1) Proposes standards for formatting, filing, recording, and preserving municipal land records. (2) Proposes a uniform system of indexing municipal land records which may include the use of numerical identifiers. (3) Proposes continuing education requirements for municipal officials and corresponding compliance requirements for municipalities. (4) Proposes incentives for municipal officials and municipalities to improve all aspects of managing and preserving municipal records. (5) Proposes a system for financing all facets of municipal land records management on a sustainable basis. 141 THURSDAY, MAY 20, 2004 (6) Analyzes the prerequisites for a municipality to digitalize its land records and examines the related administrative and public policy issues. (7) Analyzes the need for any future oversight of the recommended uniform standards. (8) Analyzes how to balance the conflicting public policy objectives of protecting personal privacy and providing public access to municipal land records. (9) Analyzes any other administrative or public policy issues related to the uniformity and modernization of municipal land records which the commission may decide to address. (b) In making its report on January 15, 2006, and in conducting its study thereafter, the commission shall take into consideration the results of the ongoing pilot project in the five municipalities that was authorized by H. 767, the 2004 Capital Construction Bill. Sec. 78d. AVAILABILITY OF FUNDS (a) Any amount remaining at the end of fiscal year 2004 in the appropriation made to the study committee on municipal records in Sec. 49b(e) of No. 66 of the Acts of 2003 shall be transferred to the office of the secretary of state and made available for the use of the Vermont municipal land records commission during fiscal years 2005 and 2006. Sec. 78e. APPROPRIATION (a) Of the funds appropriated to the office of the secretary of state in Sec. 78 of this act, the amount of $30,000.00 in general funds shall be allocated to the Vermont municipal land records commission for administrative and research services, including the hiring of staff or consultants. Any funds remaining at the end of fiscal year 2005 shall carry forward into fiscal year 2006. Sec. 78f. REPEAL (a) Secs. 78a (24 V.S.A. chapter 135) and 78b (32 V.S.A. § 1010(a)(31)) of this act are repealed as of August 31, 2010. Sec. 78g. 3 V.S.A. § 123(h) is added to read: (h) Classified state employees who are employed as investigators by the secretary of state who have successfully met the standards of training for a full- time law enforcement officer under chapter 151 of Title 20 shall have the same powers as sheriffs in criminal matters and the enforcement of the law and in serving criminal process, and shall have all the immunities and matters of

JOURNAL OF THE HOUSE 142 defense now available or hereafter made available to sheriffs in a suit brought against them in consequence for acts done in the course of their employment. Sec. 79. Banking, insurance, securities, and health care administration - banking Personal services 1,113,087 Operating expenses 269,540 Total 1,382,627 Source of Funds Special funds 1,382,627 (a) Notwithstanding 9 V.S.A. § 4230(b), in fiscal year 2005, the commissioner of banking, insurance, securities, and health care administration may transfer up to $200,000.00 from the securities regulation and supervision fund to the banking supervision fund established in 8 V.S.A. § 19(f). Sec. 80. Banking, insurance, securities, and health care administration - insurance Personal services 2,902,648 Operating expenses 599,500 Total 3,502,148 Source of Funds Special funds 3,502,148 Sec. 81. Banking, insurance, securities, and health care administration - captive Personal services 2,252,239 Operating expenses 384,850 Total 2,637,089 Source of Funds Special funds 2,637,089 Sec. 82. Banking, insurance, securities, and health care administration - securities Personal services 574,363 Operating expenses 131,110 Total 705,473 Source of Funds Special funds 705,473 Sec. 83. Banking, insurance, securities, and health care administration - health care administration Personal services 2,799,546 143 THURSDAY, MAY 20, 2004 Operating expenses 402,402 Total 3,201,948 Source of Funds General fund 466,993 Special funds 2,734,955 Total 3,201,948 (a) The department of banking, insurance, securities, and health care administration and the department of health shall report to the general assembly by January 15, 2005 on the consumer protections currently in place regarding privacy of medical records. T he report shall specifically address the adequacy of these protections in the event of hospital outsourcing of medical records transcription to a contractor based in a foreign country and any recommendations for legislative action in this regard. Sec. 84. Banking, insurance, securities, and health care administration - administration Personal services 806,688 Operating expenses 49,700 Total 856,388 Source of Funds Special funds 856,388 Sec. 85. Public safety - state police Personal services 37,235,943 Operating expenses 8,247,122 Grants 4,701,100 Total 50,184,165 Source of Funds General fund 17,115,749 Transportation fund 18,343,865 Special funds 3,653,090 Federal funds 10,422,548 Interdepartmental transfer 648,913 Total 50,184,165 (a) The department of public safety shall provide business manager services for the Vermont criminal justice training council and for the Vermont fire service training council. (b) Of the above appropriation, $35,000.00 in special funds shall be available for snowmobile law enforcement activities and $35,000.00 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

JOURNAL OF THE HOUSE 144 sheriffs, and local law enforcement personnel in Bennington, Windham and Windsor counties for snowmobile enforcement. (c) The department of public safety shall include with its annual budget materials program specific profiles. These profiles shall include revenues, expenditures for departmental activities, including but not limited to homeland security, the governor’s highway safety program, the crime lab, and department administration. (d) Of the above appropriation, $75,000.00 shall be transferred to the criminal justice training council for the purposes of maintaining the canine program. (e) Of the above appropriation, $50,000.00 shall be available for a grant to the Vermont center for justice research at Norwich University to carry out a study and report on racial and ethnic involvement in Vermont’s criminal justice system. The report shall be submitted to the general assembly, the house and senate committees on judiciary, and the court administrator by June 1, 2005. Sec. 85a. COMMUNITY DRUG INVESTIGATION PROGRAM (a) Of the $230,000.00 allocated for local heroin interdiction grants funded in Sec. 85 of this act, $190,000.00 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, heroin-related drugs, e.g. methadone and oxycontin, crack cocaine, and methamphetamine enforcement efforts. Any unexpended funds from prior fiscal years shall be carried forward. (b) The remaining $40,000.00, shall remain as a “pool” of money available to local and county law enforcement to fund overtime costs associated with heroin, heroin-related drugs, e.g. methadone and oxycontin, crack cocaine, and methamphetamine investigations. Any unexpended funds from prior fiscal years shall be carried forward. Sec. 85b. 21 V.S.A. § 1722(13) is amended to read: (13) “Municipal employer” means a city, town, village, fire district, lighting district, consolidated water district, housing authority, union municipal district, or any of the political subdivisions of the state of Vermont which employs five or more employees as defined in this section. Sec. 85c. 24 V.S.A. § 1936(a) is amended to read: (a) If the legislative body of a municipality does not establish a police department or appoint a chief of police, temporary police officers appointed pursuant to subsection (a) of section 1931 1931(a) of this title shall serve under 145 THURSDAY, MAY 20, 2004 the direction and control of the constable of the municipality of the legislative body. Sec. 85d. 24 V.S.A. § 1938(a) is amended to read: (a) Municipalities as defined in section 2001 of this title Cities, towns, incorporated villages, the University of Vermont, sheriffs, and state agencies may enter into agreements to provide for intermunicipal police services. Intermunicipal police services include general police services, emergency planning and assistance, task forces, and other specialized investigative units to provide police services within the boundaries of the participating municipalities and counties. This section shall only be applicable to such specialized investigative units or task forces and shall not apply to arrangements for basic or general police services. Sec. 85e. 24 V.S.A. § 1939 is added to read: § 1939. LAW ENFORCEMENT ADVISORY BOARD (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; (2) the director of the Vermont state police; (3) the director of the Vermont criminal justice support division; (4) a member of the Vermont association of chiefs of police appointed by the president of the association; (5) a member of the Vermont sheriffs’ association appointed by the president of the association; (6) a representative appointed by the Vermont league of cities and towns appointed by the executive director; (7) a member of the Vermont police association appointed by the president of the association; (8) the attorney general or his or her designee; (9) a state’s attorney appointed by the executive director of the department of state’s attorneys and sheriffs; (10) the U.S. attorney or his or her designee;

JOURNAL OF THE HOUSE 146 (11) the executive director of the Vermont criminal justice training council; and (12) the defender general or his or her designee. (b) The board shall elect a chair and a vice chair which shall rotate among the various member representatives. Each member shall serve a term of two years. The board shall meet at the call of the chair. A quorum shall consist of six members, and decisions of the board shall require the approval of a majority of those members present and voting. (c) The board shall undertake an ongoing formal review process of law enforcement policies and practices with a goal of developing a comprehensive approach to providing the best services to Vermonters, given monies available. The board shall also provide educational resources to Vermonters about public safety challenges in the state. (d) The board shall meet no fewer than six times a year to develop policies and recommendations for law enforcement priority needs, including retirement benefits, recruitment of officers, training needs, homeland security issues, dispatching, and comprehensive drug enforcement. The board shall present its findings and recommendations in brief summary to the general assembly and the governor annually by January 15. Sec. 85f. 24 V.S.A. § 4802 is amended to read: § 4802. APPROVAL OF PLAN (a) Every agreement for a union municipal district or interlocal contract under this chapter shall be submitted to the attorney general before being presented to the voters for acceptance or rejection. The attorney general shall determine whether the agreement is in proper form and compatible with the laws of this state. In the event that the attorney general fails to notify the joint survey committee provided for in subchapter 2 of this chapter of his or her determination within thirty 30 days after receipt of a copy of the agreement or contract it shall be deemed to have been approved. (b) In the event that an agreement for a union municipal district or interlocal contract deals in whole or in part with services or facilities over which an officer or agency of the state government has constitutional or statutory powers of control, the agreement or contract shall be submitted to him or her or it, at the time of its submission to the attorney general. The officer or agency involved may file objections with the attorney general and the central planning office. 147 THURSDAY, MAY 20, 2004 (c) No agreement or contract shall be submitted to the voters unless it has been approved by the attorney general under subsection (a) of this section. Sec. 85g. 24 V.S.A. § 4833 is amended to read: § 4833. OFFICERS The members of a joint municipal survey committee shall consist of three an equal number of representatives from each municipality designated by the legislative branch. If there is a local planning commission one of the three members shall be a member of the commission and if the municipality is in an area served by a regional planning commission, a member of that commission, chosen by the commission, shall be an ex officio member of the joint survey committee. Members of the legislative branch of a municipality may serve as members of the committee. The committee shall elect from their its own number a chairman chair and secretary and other necessary officers to serve for such period as the members shall decide. Sec. 85h. 24 V.S.A. § 4863 is amended to read: § 4863. APPROVAL OF AGREEMENT (a) Any participating municipality may enter into the agreement for the formation of the union municipal district at any annual or special meeting of such municipality duly warned for such purpose. (b) At least one public hearing on the proposed agreement shall be held in each municipality. The last public hearing for such purpose shall be held not less than five, nor more than fifteen days prior to the date of the annual or special meeting to consider the proposed agreement. Public notice shall be given of the public hearing, by the publication of the date, place and purpose of the hearing in a newspaper of general publication in the municipality and the posting of a notice in one or more public places within the municipality not less than fifteen days prior to the date of the public hearing. The notice shall make reference to a place within the municipality where copies of the proposed agreement may be examined. (c) The vote on the question of accepting the agreement shall be by printed ballot substantially as follows: (1) Shall the – (name of municipality) – enter into an agreement for the formation of a union municipal district to be known as “ “. “ .” (d)(c) The polls shall remain open for at least eight consecutive hours and all All elections in the separate municipalities shall be held on the same day. The vote shall be by Australian ballot as provided for in subchapter 3 of

JOURNAL OF THE HOUSE 148 chapter 55 of Title 17. Early or absentee voting, as provided by sections 121 to 147 of Title 17, shall be permitted. (e)(d) Where three or more municipalities are concerned in the voting, and at least two approve the agreement, rejection of the agreement by one or more shall not defeat the creation of a district composed of the municipalities voting affirmatively on the question, if the joint survey committee decides that it is feasible or practical to continue the district as a geographic unit, unless the agreement as proposed expressly provides that specific participating municipalities or a minimum number of participating municipalities shall approve the agreement. Members from municipalities rejecting the agreement may take no part in the decision of the joint survey committee, or in any subsequent matters relating to the agreement rejected by the municipalities they represent. (f)(e) The governing body of the district may authorize the inclusion of additional municipalities outside of the district. Any authorized municipality may take action to enter into the district according to the approval procedures contained herein. (g)(f) A municipality which is a member of a union municipal district may vote to withdraw from the union municipal district if one year has elapsed since said union municipal district has become a body politic and corporate as provided in section 4865 of this title and if the union municipal district has not voted to bond for construction and improvements as provided in section 4866 of this title. (h)(g) When a majority of the voters of a member municipality present and voting at a meeting of such municipality duly warned for that purpose shall vote to withdraw from a union municipal district, the vote shall be certified by the clerk of that municipality to the governing body of the union municipal district. Thereafter, the governing body of the union municipal district shall give notice to the remaining member municipalities of the vote to withdraw and such body shall hold a meeting to determine whether it is in the best interests of the district to continue to exist. Representatives of the member municipalities shall be given an opportunity to be heard at such meeting together with any other interested persons. After such meeting, the governing body may declare the district dissolved immediately or as soon thereafter as each member municipality’s financial obligations have been satisfied, or it may declare that the district shall continue to exist despite the withdrawal of the member municipality. (i)(h) A vote of withdrawal taken after a union municipal district has become a body politic and corporate but less than one year after that date shall 149 THURSDAY, MAY 20, 2004 be null and void. A vote of withdrawal taken after the union municipal district has voted to bond itself for construction and improvements shall likewise be null and void. (j)(i) The membership of the withdrawing municipality shall terminate as of one year following the vote to withdraw or as soon after such one year period as the financial obligations of said withdrawing municipality have been paid to the union municipal district. Sec. 85i. 24 V.S.A. § 4864 is added to read: § 4864. EMPLOYEE ORGANIZATIONS; POLICE EMPLOYEES; STATE LABOR RELATIONS BOARD If an employee organization is the exclusive bargaining representative of employees in one or more participating municipalities in a proposed agreement to create a union municipal district for the purpose of providing services currently provided by these employees, any questions of unit determination or representation involving these employees shall be resolved by the state labor relations board pursuant to chapter 22 of Title 21. Sec. 85j. 24 V.S.A. § 4866 is amended to read: § 4866. POWERS AND DUTIES A union municipal district may: (1) Hire and fix the compensation of employees. (2) Contract with consultants and other experts for services. (3) Contract with the state of Vermont or the federal government, or any agency or department thereof, for services. (4) Contract with any participating municipality for the services of any officers or employees of that municipality useful to it. (5) Contract with a county sheriff to provide law enforcement services to the union district. (6) Promote cooperative arrangements and coordinated action among its participating municipalities. (6)(7) Make recommendations for review and action to its participating municipalities and other public agencies which perform functions within the region in which its participating municipalities are located; and. (7)(8) Exercise any other powers which are exercised or are capable of exercise by any of its participating municipalities, and necessary or desirable for dealing with problems of mutual concern.

JOURNAL OF THE HOUSE 150 (8)(9) Borrow money and issue evidence of indebtedness as provided by chapter 53 of Title 24. Obligations incurred under such chapter shall be the joint and several obligations of the district and of each member municipality but shall not affect any limitation on indebtedness of a member municipality. The cost of debt service shall be included in the annual budget of the district, and shall be allocated among the member municipalities as provided in the agreement for the allocation of the assessment for the ordinary expenses of the district. Where voter approval is required pursuant to chapter 53 of Title 24, the governing body of the district shall determine the number and location of polling places, and when a majority of all the voters present and voting on the question from all of the member municipalities at such meeting vote to authorize the issuance of bonds, the district shall be authorized to issue the bonds as provided in said chapter. The counting of ballots shall be conducted by the governing board of the district together with the town or city clerk from each member municipality or his or her designee. Sec. 85k. 24 V.S.A. § 4901 is amended to read: § 4901. AUTHORIZATION (a) Any one or more municipalities may contract with any one or more other municipalities to perform any governmental service, activity, or undertaking which each municipality entering into the contract is authorized by law to perform, provided that the contract is recommended by a joint survey committee, approved by the attorney general as provided in section 4802 of this title, and authorized by a majority of the voters in each participating municipality at an annual or special meeting duly warned for that purpose legislative body of each municipality approves the contract, and expenses for such governmental service, activity, or undertaking are included in a municipal budget approved under 17 V.S.A. § 2664 or comparable charter provision. * * * (c) A municipality may submit an interlocal contract to the attorney general prior to approval by its legislative body. If such a contract is submitted, the attorney general shall determine whether the contract is in proper form and compatible with the laws of this state and notify the legislative body of the municipality of his or her determination. In the event that the attorney general does not respond to the request within 30 days after receipt of a copy of the contract, the legislative body may approve the contract. Sec. 85l. APPROPRIATION; LAW ENFORCEMENT RECRUITMENT IMPLEMENTATION (a) The amount of $50,000.00 in general funds is appropriated to the 151 THURSDAY, MAY 20, 2004 department of public safety for the purposes of implementing the recruitment recommendations of the law enforcement advisory board. Sec. 86. Public safety - criminal justice services Personal services 5,921,690 Operating expenses 2,677,050 Grants 2,543,500 Total 11,142,240 Source of Funds General fund 95,000 Transportation fund 4,032,621 Special funds 1,241,307 Federal funds 5,196,212 Interdepartmental transfer 577,100 Total 11,142,240 (a) The commissioner of buildings and general services and the commissioner of public safety shall collaborate to provide a plan for completion of a new public safety forensics laboratory not later than fiscal year 2008. This plan is to be provided to the general assembly by January 15, 2005. (b) The commissioner of public safety shall request additional funding when necessary to assure continued forensics laboratory accreditation pending completion of the proposed new laboratory facility. Sec. 86a. 20 V.S.A. § 2055 is amended to read § 2055. FILES (a) The director of the Vermont crime information center shall maintain and disseminate such files as are necessary relating to the commission of crimes, arrests, convictions, disposition of criminal causes, probation, parole, fugitives from justice, missing persons, fingerprints, photographs, stolen property and such matters as the commissioner deems relevant. (b) The director shall maintain criminal records pursuant to this chapter regardless of whether the record is fingerprint supported. Any “no print, no record” rule or policy of the center shall be void. Sec. 87. Public safety - emergency management Personal services 1,479,294 Operating expenses 701,700 Grants 799,487 Total 2,980,481 Source of Funds

JOURNAL OF THE HOUSE 152 Transportation fund 63,969 Special funds 1,192,211 Federal funds 1,721,800 Interdepartmental transfer 2,501 Total 2,980,481 (a) In fiscal year 2005, 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 defined by the state as required to support the plan shall develop the budget for expenditures from the radiological emergency response plan fund for fiscal year 2006 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 $5,000.00 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 defined by the state as required to support the plan shall be determined during the budgeting process established by this section. (b) Of the above special fund appropriation, up to $30,000.00 shall be granted to WTSA radio for the emergency alert system. (c) Notwithstanding 20 V.S.A. § 38(a)(5), for that portion of the emergency response plan fund budget for fiscal year 2005 that is approved by the general assembly for support of local community emergency planning zone activities, the commissioner of public safety shall arrange for and receive payment from Entergy Nuclear Vermont Yankee, LLC of the full amount required from Entergy for fiscal year 2005 in the month of July 2004. Within 30 days of receipt thereof the commissioner shall remit directly to each of the municipalities in the emergency planning zone, the Windham regional planning commission, and any other municipality defined by the state as required to support the plan the full amount it is entitled to receive for expenditures as budgeted in subsection (a) of this section. These and all other authorized radiological emergency response plan budget expenditures will continue to be accounted for to the radiological emergency response plan fund manager and included in the annual report. (d) The director of emergency management shall determine the feasibility of reducing the amount of state personal services and operating expenses needed to support the radiological emergency response plan by utilizing available personnel and material resources from within the emergency planning zone area. 153 THURSDAY, MAY 20, 2004 (e) Of the total general fund appropriation for the department of public safety, personal services, $31,995.00 shall be used to fund the emergency management administrative assistant position. Sec. 87a. MEDICAL RESERVE CORPS; RESPONSIBILITIES AND PROTECTIONS (a) Employing its best efforts, by August 1, 2004 or as soon as practicable thereafter, the department of public safety, or any division or office thereof, shall execute a memorandum of understanding with the medical reserve corps of southwestern Vermont, a Vermont organization applying to be qualified under section 501(c)(3) of the federal internal revenue code. The memorandum of understanding shall specify the relationships, responsibilities, and protections such as, but not restricted to, liability and workers’ compensation offered to members of the medical reserve corps of southwestern Vermont under current Vermont law while performing emergency duties and functions, at the direction of the department of public safety or any division or office thereof. (b) Upon the establishment of a similar medical reserve corps in any other area of the state, the department of public safety, or any division or office thereof, shall execute a similar memorandum of understanding within 60 days, or as soon as practicable thereafter, of receiving notification and documentation of the medical reserve corps’ formal organization. (c) The provisions of this section shall not terminate on June 30, 2005. Sec. 88. Agriculture, food and markets - administration Personal services 783,330 Operating expenses 387,059 Grants 313,404 Total 1,483,793 Source of Funds General fund 1,337,322 Special funds 65,316 Federal funds 24,542 Interdepartmental transfer 56,613 Total 1,483,793 Sec. 89. Agriculture, food and markets - food safety and consumer assurance Personal services 1,989,605 Operating expenses 289,441 Grants 2,901,492 Total 5,180,538

JOURNAL OF THE HOUSE 154 Source of Funds General fund 1,328,083 Transportation fund 38,553 Special funds 3,151,781 Federal funds 655,121 Interdepartmental transfer 7,000 Total 5,180,538 Sec. 90. Agriculture, food and markets - agriculture development Personal services 626,627 Operating expenses 600,633 Grants 1,034,421 Total 2,261,681 Source of Funds General fund 558,266 Special funds 1,507,415 Federal funds 196,000 Total 2,261,681 Sec. 91. Agriculture, food and markets - plant industry and labs Personal services 2,401,202 Operating expenses 563,184 Grants 415,000 Total 3,379,386 Source of Funds General fund 533,053 Special funds 2,045,138 Federal funds 564,651 Interdepartmental transfer 236,544 Total 3,379,386 (a) Notwithstanding 6 V.S.A. § 929, in fiscal year 2005, $500,000.00 of the special pesticide monitoring revolving fund is included in the above appropriation and may be used to fund fiscal year 2005 agency of agriculture, food and markets personal services and operating costs related to the clean and clear statewide action plan. (b) Notwithstanding 6 V.S.A. § 364(e), in fiscal year 2005, $250,000.00 of the feeds, seeds, and fertilizer special fund is included in the above appropriation and may be used to fund fiscal year 2005 agency of agriculture, food and markets personal services and operating costs related to the clean and clear statewide action plan. 155 THURSDAY, MAY 20, 2004 Sec. 92. Agriculture, food and markets - state stipend Grants 175,000 Source of Funds General fund 175,000 Sec. 93. STATE FAIR CAPITAL PROJECTS; ONE-TIME APPROPRIATIONS (a) The sum of $50,000.00 in general funds is appropriated to the agency of agriculture, food and markets and shall be used for a competitive grants program for state fair capital projects. No single entity shall be awarded more than ten percent of this appropriation. Sec. 94. Agriculture, food and markets - mosquito control Personal services 20,000 Operating expenses 70,000 Total 90,000 Source of Funds Special funds 90,000 Sec. 95. Public service - regulation and energy Personal services 4,514,560 Operating expenses 639,201 Grants 450,000 Total 5,603,761 Source of Funds Special funds 4,598,761 Federal funds 980,000 Interdepartmental transfer 25,000 Total 5,603,761 Sec. 96. Public service - purchase and sale of power Personal services 10,000 Operating expenses 2,215 Total 12,215 Source of Funds Special funds 12,215 Sec. 97. Enhanced 9-1-1 Board Personal services 1,960,337 Operating expenses 457,251 Total 2,417,588 Source of Funds

JOURNAL OF THE HOUSE 156 Special funds 2,417,588 Sec. 98. Public service board Personal services 2,304,677 Operating expenses 320,000 Total 2,624,677 Source of Funds Special funds 2,624,677 Sec. 99. Judiciary Personal services 22,903,174 Operating expenses 5,924,728 Total 28,827,902 Source of Funds General fund 22,953,570 Transportation fund 3,004,507 Special funds 470,118 Tobacco fund 40,000 Federal funds 305,458 Interdepartmental transfer 2,054,249 Total 28,827,902 (a) The court administrator is requested to propose further measures to reduce the felony case backlog. As part of this effort the court administrator shall propose “acceptable” standards for case backlogs. These proposals and requests for any additional resources are to be coordinated with the defender general and the state’s attorneys’ association to achieve this objective in a balanced and efficient manner. Requests for any additional resources needed by all affected agencies for this purpose are to be included in the fiscal year 2006 budget request. (b) To the extent that the judiciary allocates additional resources to reduce the criminal case backlog, those resources shall first be directed at Windham and Bennington counties in fiscal year 2005. (c) The judiciary shall examine and implement appropriate and effective procedures to review the bail of persons on weekends in an effort to reduce the number of persons incarcerated for lack of bail pending arraignment. The judiciary shall report to the joint corrections oversight committee in November 2004 on the implementation and effectiveness of this program during fiscal year 2005. (d) The court administrator shall review the existing means of providing court security in Vermont and make recommendations for transition to a single 157 THURSDAY, MAY 20, 2004 security provider from among the following options: court sheriff, state employee, or commercial contract security service. The court administrator shall have the assistance of the commissioner of public safety and the sheriffs’ association in conducting this review. Recommendations are to be submitted in conjunction with the judiciary budget request for fiscal year 2006. (e) The establishment of one (1) new exempt position – Drug Court Coordinator – is authorized in fiscal year 2005. (f) Of the above appropriation, $25,000.00 shall be used to provide security at the Franklin county superior court. The court administrator shall not impact the allocation for jury trials as a result of the reallocation of these funds.

Sec. 99a. 4 V.S.A. § 25(c) is amended to read: (c) The supreme court may allow supreme court justices, superior court judges, district court judges, environmental court judges, magistrates, hearing officers, probate court judges, superior court clerks, or any state compensated employees of the judicial branch not covered by a collective bargaining agreement to take an administrative leave of absence without pay or with pay if the person is called to active duty in support of an extended national or state military operation. These judicial officers and state employees shall be entitled to be compensated in the same manner as judicial branch employees covered by a collective bargaining agreement called to active duty. The court administrator, at the direction of the supreme court, shall include provisions in the personnel rules of the judiciary to administer these leaves of absence. Sec. 100. 4 V.S.A. § 25(b) is amended to read: (b) The supreme court is authorized to pay on an hourly basis all persons whose compensation is established by 32 V.S.A. §§ 1010, 1141, 1511, and 1551 and 1592 and 4 V.S.A. §§ 23, 75, and 356. The supreme court shall pay all persons whose compensation is established by 32 V.S.A. § 1141 on the basis of a half day minimum and hourly thereafter. Sec. 101. [Deleted] Sec. 102. Human rights commission Personal services 352,103 Operating expenses 75,350 Total 427,453 Source of Funds General fund 273,225 Special funds 1 Federal funds 154,227

JOURNAL OF THE HOUSE 158 Total 427,453 Sec. 103. Fire service training council Personal services 705,933 Operating expenses 504,768 Grants 48,000 Total 1,258,701 Source of Funds General fund 464,860 Transportation fund 80,320 Special funds 438,521 Federal funds 105,000 Interdepartmental transfer 170,000 Total 1,258,701 (a) Of the above general fund appropriation, $48,000.00 shall be granted to the Vermont rural fire protection task force for the purpose of designing dry hydrants. Sec. 104. Total protection to persons and property 202,475,576 Source of Funds General fund 71,487,292 Transportation fund 27,716,109 Special funds 49,780,652 Tobacco fund 620,000 Federal funds 42,038,733 Enterprise funds 3,763,980 Interdepartmental transfer 7,068,810 Total 202,475,576 Sec. 105. Human services - agency of human services - secretary’s office Personal services 3,082,913 Operating expenses 1,034,809 Grants 11,281,100 Total 15,398,822 Source of Funds General fund 5,761,465 Tobacco fund 1,375,845 Federal funds 7,161,512 Interdepartmental transfer 1,100,000 Total 15,398,822 (a) Notwithstanding any other provisions of law, workers employed by 159 THURSDAY, MAY 20, 2004 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. (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 self- insurance 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 fund appropriation, $49,000.00 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, $100,000.00 shall be used for a grant to Lamoille County people in partnership for wrap-around services for at-risk youth. (f) Of the above tobacco fund appropriation, $100,000.00 with any corresponding federal matching funds shall be for comprehensive treatment services and $15,000.00 for safe housing provisions for at-risk youth. (g) Of the above general fund appropriation, $30,000.00 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, $8,000.00 shall be granted to the Vermont council of girl scouts, of which $5,000.00 shall be used to support a girl scout special project to assist girls with incarcerated mothers and $3,000.00 shall be used to support a school vacation program. (i) Of the above appropriation, a total of $ 3,823,097.00 consisting of $1,650,341.00 in general funds, $811,845.00 in tobacco funds, and

JOURNAL OF THE HOUSE 160 $1,360,911.00 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 $1,440,660.00, of which $744,243.00 is from general and tobacco funds, shall be used to support the outpatient treatment, case management and drug court component of the plan. Of the general and tobacco funds, $144,367.00 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 two federal funds from the 2003 Department of Justice Drug Court Implementation Grant award. (2) The amount of $352,866.00, of which $141,133.00 is from general funds and $141,120.00 is from tobacco funds, shall be used to fund student assistance counselors. (3) The amount of $599,067.00, of which $517,101.00 is from general funds and $45,000.00 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 $250,000.00 from tobacco funds shall be used for recovery programs. These funds shall be used to provide grants of $35,000.00 each to the recovery programs in Springfield, St. Johnsbury, Rutland, Colchester, Bennington, and Barre; a grant of $20,000.00 to the program in White River Junction; and $20,000.00 shall be available for development, assistance, and evaluation grants to recovery centers. (5) The amount of $1,180,504.00, of which $389,567.00 is from general funds and $234,022.00 is from tobacco funds, shall be used for opiate treatment programs, including buprenorphine and methadone and treatment for pregnant and postpartum women. (j) It is the intent of the general assembly that the department of banking, insurance, securities, and health care administration and the department of prevention, assistance, transition, and health access work toward contributing to the support of the health care ombudsman office on an equal basis. This shared support shall not put at risk federal matching funds available to the department of prevention, assistance, transition, and health access. (k) Of the above tobacco fund appropriation, $200,000.00 along with available matching federal funds shall be available services required for petitions filed by the agency under 33 V.S.A.§ 5517 (e). 161 THURSDAY, MAY 20, 2004 Sec. 105a. 33 V.S.A. § 5517(e) is added to read: (e) Notwithstanding laws to the contrary in this chapter, the agency of human services may file a petition pursuant to subsections (a) and (c) of this section alleging that a 16- to 17.5-year-old youth who is not in the custody of the state is a child in need of care or supervision under subdivision 5502(a)(12) (C) of this title when the child is at high risk of serious harm to himself or herself or others due to problems such as substance abuse, prostitution, or homelessness, and whose needs transcend any one department of the agency of human services and require complicated clinical interventions from multiple organizations. The report required by subsection (c) of this section shall set forth facts supporting the specific requirements of this section and that it is in the best interests of the child to be considered as a child in need of care or supervision. If the court finds all of the allegations set forth in the report have been established, it shall find the child is a child in need of care or supervision. All proceedings initiated pursuant to this section shall be conducted in accordance with the requirements of this chapter. Services to the child and his or her family shall be provided through a coordinated effort by the agency of human services, the department of education, and community- based interagency teams. Sec. 105b. 33 V.S.A. § 5562 is added to read: § 5562. JUVENILE JUSTICE DIRECTOR (a) The governor shall appoint an exempt juvenile justice director, reporting directly to the secretary of the agency of human services, who shall have the responsibility and authority to monitor and coordinate all state and participating regional and local programs that deal with juvenile justice issues, including prevention, education, enforcement, adjudication, and rehabilitation. (b) The juvenile justice director shall ensure that the following occur: (1) Development of a comprehensive plan for a coordinated and sustained statewide program to reduce the number of juvenile offenders, involving state, regional, and local officials in the areas of health, education, prevention, law enforcement, corrections, teen activities, and community wellness. (2) Cooperation among state, regional, and local officials, court personnel, service providers, and law enforcement agencies in the formulation and execution of a coordinated statewide juvenile justice program. (3) Cooperation among appropriate departments, including the departments of education, corrections, social and rehabilitation services,

JOURNAL OF THE HOUSE 162 employment and training, developmental and mental health services, and public safety, and the office of alcohol and drug abuse programs. (4) A study of issues relating to juvenile justice and development of recommendations regarding changes in law and rules, as deemed advisable. (5) Compilation of data on issues relating to juvenile justice and analysis, study, and organization of such data for use by educators, researchers, policy advocates, administrators, legislators, and the governor. Sec. 106. 3 V.S.A. § 3002(a) is amended to read: (a) An agency of human services is created consisting of the following: (1) The department of corrections. (2) The department of prevention, assistance, transition, and health access for children and families. (3) The department of health except certain environmental protection activities transferred to the environmental conservation agency. (4) The department of social and rehabilitation services. (5) The department of developmental and mental health services. (6) The office of alcohol and drug abuse. (7) Office of economic opportunity. (8) A The department of aging and disabilities independent living. (9) (5) The human services board. (10) (6) Office of child support Vermont health access. Sec. 106a. 3 V.S.A. § 3051 is amended to read: § 3051 COMMISSIONERS; DEPUTY COMMISSIONERS;- APPOINTMENT; TERM (a) The secretary, with the approval of the governor, shall appoint a commissioner of each department, who shall be the chief executive and administrative officer and shall serve at the pleasure of the secretary. (b) For the department of health, the secretary, with the approval of the governor, shall appoint deputy commissioners for the following divisions of the department: (1) mental health; (2) public health; 163 THURSDAY, MAY 20, 2004 (3) substance abuse. (c) For the department for children and families, the secretary, with the approval of the governor, shall appoint deputy commissioners for the following divisions of the department: (1) field operations; (2) economic services; (3) child development; (4) juvenile and child protection services.

(d) Deputy commissioners shall be exempt from the classified service. Their appointments shall be in writing and shall be filed in the office of the secretary of state. Sec. 106b. 3 V.S.A. § 3082 is amended to read: § 3082. DEPARTMENT OF HEALTH The department of health is created within the agency of human services as the successor to and the continuation of the department of health, and shall have jurisdiction over all matters covered in chapter 7 of Title 33 and in Title 18, except mental health provisions and certain environmental protection activities transferred to the agency of natural resources and the division of mental health services of the department of developmental and mental health services. The department of health shall be responsible for the operation of the Vermont state hospital. Sec. 106c. 3 V.S.A. § 3084 is amended to read: § 3084. DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES FOR CHILDREN AND FAMILIES (a) The department of social and rehabilitation services for children and families is created within the agency of human services as the successor to and the continuation of the division of social services of the department of prevention, assistance, transition, and health access department of social and rehabilitation services, the department of prevention, assistance, transition, and health access, excluding the office of Vermont health access, the office of economic opportunity, and the office of child support. The department shall also include a division of child development programs. (b) An investigations unit is created within the department for children and families as the successor to and continuation of the investigation functions of the social services division of the department of social and rehabilitation services under chapter 49 of Title 33.

JOURNAL OF THE HOUSE 164 Sec. 106d. 3 V.S.A. § 3085a is amended to read: § 3085a. DEPARTMENT OF AGING AND DISABILITIES INDEPENDENT LIVING The department of aging and disabilities independent living is created within the agency of human services to manage programs and to protect the interests of older Vermonters and Vermonters with disabilities. It shall serve as the state unit on aging, as provided by the Older Americans Act of 1965, as amended, and it shall serve as the administrative home within the agency of human services for the designated state agencies for federal vocational rehabilitation and independent living programs, as provided by the Rehabilitation Act of 1973, as amended as the successor to and continuation of the department of aging and disabilities, the developmental services division of the department of developmental and mental health services, and the personal care and hi-tech programs in the department of prevention, assistance, transition, and health access. Sec. 106e. 3 V.S.A. § 3086(b) is amended to read: (b) The administrative services operations division shall provide the following services to the agency and all its components, including components assigned to it for administration: (1) Personnel administration; (2) Coordination of financing Financing and accounting activities; (3) Coordination of filing and records maintenance activities; (4) Provision of facilities, office space, and equipment and the care thereof; (5) Requisitioning from the department of buildings and general services of the agency of administration, of supplies, equipment and other requirements; (6) Management improvement services; and (7) Training; (8) Information systems and technology; and (9) Other administrative functions assigned to it by the secretary. Sec. 106f. 3 V.S.A. § 3088 is added to read: § 3088. OFFICE OF VERMONT HEALTH ACCESS 165 THURSDAY, MAY 20, 2004 The office of Vermont health access is created within the agency of human services. Sec. 106g. APPROPRIATION TRANSFERS; REPORTS (a) The agency of human services shall submit reports on any transfers made in accordance with Sec. 298(f) of this act to the legislative joint fiscal committee on July 1, September 1, and November 1 for committee review and consideration at the July, September, and November 2004 committee meetings. Sec. 107. Rate setting Personal services 628,088 Operating expenses 66,803 Total 694,891 Source of Funds Interdepartmental transfer 694,891 Sec. 108. Human services board Personal services 269,238 Operating expenses 32,226 Total 301,464 Source of Funds General fund 121,082 Federal funds 128,129 Interdepartmental transfer 52,253 Total 301,464 Sec. 109. Developmental disabilities council Personal services 122,521 Operating expenses 39,600 Grants 321,000 Total 483,121 Source of Funds Federal funds 483,121 (a) The executive director of the developmental disabilities council shall be an exempt position. Sec. 110. Office of child support services Personal services 7,649,310 Operating expenses 2,790,782 Total 10,440,092 Source of Funds General fund 1,370,517

JOURNAL OF THE HOUSE 166 Special funds 454,125 Federal funds 8,508,350 Interdepartmental transfer 107,100 Total 10,440,092 Sec. 111. Health - administration and support Personal services 4,149,049 Operating expenses 1,011,452 Total 5,160,501 Source of Funds General fund 1,072,540 Special funds 21,951 Federal funds 4,066,010 Total 5,160,501 Sec. 112. Health - health protection Personal services 3,235,360 Operating expenses 650,861 Grants 406,340 Total 4,292,561 Source of Funds General fund 1,213,228 Special funds 1,122,900 Federal funds 1,509,317 Interdepartmental transfer 447,116 Total 4,292,561 Sec. 113. Health - health surveillance Personal services 6,827,697 Operating expenses 1,887,908 Grants 2,714,100 Total 11,429,705 Source of Funds General fund 3,680,018 Special funds 1,072,850 Federal funds 6,546,652 Permanent trust 2,300 Interdepartmental transfer 127,885 Total 11,429,705 (a) Of the above general fund appropriation, $250,000.00 and at least $50,000.00 in federal funds shall be appropriated to the Vermont AIDS service 167 THURSDAY, MAY 20, 2004 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 only, not administrative or other purposes. 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). (b) Of the above federal fund appropriation, the Ryan White Title II federal service funds shall be used for direct client-based support services, including services that assist people living with HIV/AIDS to access medical care. The department shall follow federal guidelines and shall be advised by the HASAC for the purpose of prioritization of the use of these funds. Criteria shall be developed by the department, in collaboration with the HASAC, to govern situations when the department may select providers outside the existing AIDS service organizations network to receive part of these Ryan White Title II funds. (c) Of the above general fund appropriation, $175,000.00 shall be used for all aspects of the HIV/AIDS medication assistance program (AMAP), including the costs of prescribed medications, related laboratory testing, nutritional supplements, and maximum cost-effectiveness for the program. (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, comprising 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. 114. Health - health improvement Personal services 7,865,343 Operating expenses 1,109,859 Grants 14,554,500 Total 23,529,702 Source of Funds General fund 3,569,214 Special funds 989,927 Tobacco fund 3,399,677 Federal funds 15,415,384

JOURNAL OF THE HOUSE 168 Interdepartmental transfer 155,500 Total 23,529,702 (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 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) Of the above appropriation, $300,000.00 is to support the Vermont coalition of clinics for the uninsured health care and dental services provided by clinics for uninsured individuals and families. (c) 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 - $1,023,624.00; (2) media and public education - $926,053.00; (3) tobacco cessation programs - $1,130,000.00; of this allocation, $80,000.00 shall be used to make nicotine replacement therapies available to all persons enrolled in tobacco cessation counseling; (4) surveillance and evaluation activities - $320,000.00. (d) The department of health 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 2004 (through June 30, 2004) which shall be broken out by quarter and include enrollment data. (2) For fiscal year 2005, 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. 169 THURSDAY, MAY 20, 2004 (3) The department of health shall submit these reports to the house and senate committees on appropriations and health and welfare or the joint health access oversight committee when the general assembly is not in session. (e) The department of health shall report to the joint health access oversight committee prior to implementing any change in the manner in which services in the family infant toddler program are delivered. (f) Of the above general fund appropriation, $120,000.00 is for activities to address childhood obesity of which $50,000.00 shall be used to fill the public health nutrition chief position, $50,000.00 for “fitWIC” kits and $20,000.00 for grants of $10,000.00 each to the “Run Girl Run” and “Girls on the Run” programs. Sec. 115. Health - community public health Personal services 11,300,056 Operating expenses 1,632,764 Grants 11,594,327 Total 24,527,147 Source of Funds General fund 4,007,512 Special funds 520,701 Federal funds 19,641,614 Interdepartmental transfer 357,320 Total 24,527,147 (a) The department of health shall include with its annual budget submission the total amount of funds granted through the healthy babies program and the source of funds that support the grant. Sec. 116. Health - alcohol and drug abuse programs Personal services 2,370,638 Operating expenses 860,942 Grants 16,767,392 Total 19,998,972 Source of Funds General fund 4,836,632 Special funds 157,000 Tobacco fund 3,171,266 Federal funds 11,416,074 Interdepartmental Transfer 418,000 Total 19,998,972 (a) For the purpose of meeting the need for outpatient substance abuse

JOURNAL OF THE HOUSE 170 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 time - limited 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) All programs shall continue to fulfill grant or contract agreements. (2) The provisions of subdivision (1) of this subsection shall not preclude the division’s “request for bids” process. (c) Of the above appropriation, $75,000.00 shall be used for drug court programs in Bennington, Chittenden, and Rutland counties. The sum of $25,000.00 is allocated for each drug court program to be used for treatment, case management, coordination, and screening services as needed. (d) Of the above interdepartmental transfer, $90,000.00 shall be used to support the gambling addiction program. Sec. 117. Health - medical practice board Personal services 637,400 Operating expenses 125,000 Total 762,400 Source of Funds Special funds 762,400 Sec. 117a. 26 V.S.A. § 1351(f) is added to read: 171 THURSDAY, MAY 20, 2004 (f) Classified state employees who are employed as investigators by the department of health who have successfully met the standards of training for a full-time law enforcement officer under chapter 151 of Title 20 shall have the same powers as sheriffs in criminal matters and the enforcement of the law and in serving criminal process, and shall have all the immunities and matters of defense now available or hereafter made available to sheriffs in a suit brought against them in consequence for acts done in the course of their employment. Sec. 118. Social and rehabilitation services - administrative and support services Personal services 2,237,449 Operating expenses 331,754 Total 2,569,203 Source of Funds General fund 1,187,302 Federal funds 1,381,901 Total 2,569,203 (a) Prior to entering into long-term contracts to replace the residential capacity lost as a result of the change in status at Mountain View, the department shall seek proposals from qualified providers to meet the residential treatment needs of the department’s caseload. Sec. 119. Social and rehabilitation services - social services Personal services 17,195,972 Operating expenses 2,695,866 Grants 52,569,306 Total 72,461,144 Source of Funds General fund 30,635,390 Special funds 1,306,152 Tobacco fund 75,000 Federal funds 40,444,602 Total 72,461,144 Sec. 120. Social and rehabilitation services - child care services Personal services 1,785,851 Operating expenses 409,257 Grants 35,740,228 Total 37,935,336 Source of Funds General fund 13,328,821 Transportation fund 60,249

JOURNAL OF THE HOUSE 172 Special funds 832,000 Federal funds 23,637,014 Interdepartmental transfer 77,252 Total 37,935,336 (a) Of the above appropriation, $50,000.00 shall be granted to the Vermont Center for the Book. Sec. 120a. FISCAL YEAR 2004 CHILD CARE SUPPLEMENTAL APPROPRIATION (a) In addition to funds already appropriated to the department of social and rehabilitation services for child care expenditures, $1,700,000.00 in general funds is appropriated from the human services caseload reserve established under 32 V.S.A. § 308b to meet caseload pressures in fiscal year 2004. Sec. 121. [Deleted] Sec. 122. Social and rehabilitation services - Woodside rehabilitation center Personal services 2,282,357 Operating expenses 438,299 Total 2,720,656 Source of Funds General fund 2,665,764 Interdepartmental transfer 54,892 Total 2,720,656 Sec. 123. Social and rehabilitation services - disability determination services Personal services 2,719,300 Operating expenses 441,112 Total 3,160,412 Source of Funds Federal funds 2,915,267 Interdepartmental transfer 245,145 Total 3,160,412 Sec. 124. Prevention, assistance, transition, and health access - administration Personal services 27,827,176 Operating expenses 5,249,699 Grants 1,414,675 Total 34,491,550 Source of Funds General fund 13,476,039 Special funds 2,047,319 173 THURSDAY, MAY 20, 2004 Federal funds 18,973,192 Total 34,491,550 (a) Of the above special fund appropriation, $85,000.00 shall be from the universal service fund for administration and software expenses for the lifeline program. Sec. 125. Prevention, assistance, transition, and health access - reach up Grants 44,486,083 Source of Funds General fund 15,948,867 Special funds 2,200,000 Federal funds 26,337,216 Total 44,486,083 Sec. 126. Prevention, assistance, transition, and health access - aid to aged, blind and disabled Personal services 1,365,966 Grants 9,218,772 Total 10,584,738 Source of Funds General fund 10,584,738 Sec. 127. FUND APPROPRIATIONS AND TRANSFERS (a) The sum of $69,065,572.00 is appropriated and transferred from the general fund to the health access trust fund in fiscal year 2005. (b) The sum of $17,250,000.00 is appropriated and transferred from the tobacco litigation settlement fund to the health access trust fund in fiscal year 2005. Sec. 128. Prevention, assistance, transition, and health access - Medicaid Personal services 15,812,482 Grants 565,725,112 Total 581,537,594 Source of Funds Special funds 227,732,074 Federal funds 353,805,520 Total 581,537,594 (a) HIV/AIDS health insurance assistance program. (1) The department of prevention, assistance, transition, and health access (PATH) in cooperation with the department of health shall operate an

JOURNAL OF THE HOUSE 174 HIV/AIDS insurance assistance program. (2) 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. (3) 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 department of prevention, assistance, transition, and health access, do not exceed $10,000.00. (4) Expenditures under this program shall not exceed $55,000.00 in fiscal year 2005. (b) The general assembly recognizes that increasing malpractice insurance premium costs are jeopardizing access to physician services for Medicaid beneficiaries. Of the above appropriation, $250,000.00 from the health access trust fund, along with federal matching funds, shall be used to increase reimbursement paid to physicians. The increase shall be applied equally to all procedures. (c) The rules for Medicaid payments for nursing homes shall be amended, effective July 1, 2004, to raise the limit on recognition of base year per diem costs to 135 percent of the median base year nursing care per diem costs, 120 percent of the median base year resident care per diem costs, and 137 percent of the median base year indirect per diem costs for all private nursing homes participating in the Vermont Medicaid program that meet the criteria set out in Sec. 160(b) of No. 142 of the Acts of 2002. Notwithstanding any other provisions of law, the rule change required by this subsection 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. * * * Prescription Drug Price Disclosure * * * Sec. 128a. 33 V.S.A. § 2008 is added to read: § 2008. PRESCRIPTION DRUG PRICE DISCLOSURE (a) Upon request, a pharmacy shall disclose to any consumer or health care provider the usual and customary retail price of a prescription drug. 175 THURSDAY, MAY 20, 2004 (b) With each prescription dispensed, a pharmacy shall disclose to the consumer, in writing, the price of the prescription and any payment toward the price required of the consumer. (c) For purposes of this section: (1) “Price of the prescription” means the amount charged by the pharmacy to the consumer or, if applicable, to the consumer’s health benefit plan. (2) “Usual and customary retail price” means the total price charged to a consumer who does not have prescription drug coverage under a health benefit plan. (d) In addition to any other remedy provided by law, the attorney general may file an action in superior court for a violation of this section. In any such action, the attorney general shall have the same authority to investigate and to obtain remedies as if the action were brought under the consumer fraud act, chapter 63 of Title 9. Each violation of this section constitutes a separate civil violation for which the attorney general may obtain relief. * * * Pharmaceutical Marketers * * * Sec. 128b. 33 V.S.A. § 2005 is amended to read: § 2005. PHARMACEUTICAL MARKETERS (a)(1) Annually on or before January 1 of each year, every pharmaceutical manufacturing company shall disclose to the Vermont board of pharmacy 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 board 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. Initial disclosure shall be made on or before January 1, 2004 for the 12-month period ending June 30, 2003. The board shall provide to the office of the attorney general complete access to the information required to be disclosed under this subsection. 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.

JOURNAL OF THE HOUSE 176 (2) Each Annually in the month of October, each company subject to the provisions of this section also shall also disclose to the board, on or before October 1, 2002 and annually thereafter office of the attorney general, the name and address of the individual responsible for the company’s compliance with the provisions of this section. (3) The Vermont board of pharmacy and the office of the attorney general shall keep confidential all trade secret information, as defined by subdivision 317(b)(9) of Title 1. The disclosure form prescribed by the board shall permit the company to identify any information that is a trade secret. (4) The following shall be exempt from disclosure: (A) free samples of prescription drugs intended to be distributed to patients; (B) the payment of reasonable compensation and reimbursement of expenses in connection with bona fide clinical trials. As used in this subdivision, “clinical trial” means an approved clinical trial conducted in connection with a research study designed to answer specific questions about vaccines, new therapies or new ways of using known treatments; (C) any gift, fee, payment, subsidy or other economic benefit the value of which is less than $25.00; and (D) scholarship or other support for medical students, residents and fellows to attend a significant educational, scientific, or policy-making conference of a national, regional, or specialty medical or other professional association if the recipient of the scholarship or other support is selected by the association; (E) unrestricted grants for continuing medical education programs; and (F) prescription drug rebates and discounts. * * * (c) As used in this section: (1) “Approved clinical trial” means a clinical trial that has been approved by the U.S. Food and Drug Administration (FDA) or has been approved by a duly constituted Institutional Review Board (IRB) after reviewing and evaluating it in accordance with the human subject protection standards set forth at 21 C.F.R. Part 50, 45 C.F.R. Part 46, or an equivalent set of standards of another federal agency. 177 THURSDAY, MAY 20, 2004 (2) “Bona fide clinical trial” means an approved clinical trial that constitutes “research” as that term is defined in 45 C.F.R. § 46.102 when the results of the research can be published freely by the investigator and reasonably can be considered to be of interest to scientists or medical practitioners working in the particular field of inquiry. (3) “Clinical trial” means any study assessing the safety or efficacy of drugs administered alone or in combination with other drugs or other therapies, or assessing the relative safety or efficacy of drugs in comparison with other drugs or other therapies. (4) "Pharmaceutical marketer" means a person who, while employed by or under contract to represent a pharmaceutical manufacturing company, engages in pharmaceutical detailing, promotional activities, or other marketing of prescription drugs in this state to any physician, hospital, nursing home, pharmacist, health benefit plan administrator, or any other person authorized to prescribe, dispense, or purchase prescription drugs. The term does not include a wholesale drug distributor or the distributor's representative who promotes or otherwise markets the services of the wholesale drug distributor in connection with a prescription drug. (2)(5) "Pharmaceutical manufacturing company" means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drugs, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, or any entity engaged in the packaging, repackaging, labeling, relabeling, or distribution of prescription drugs. The term does not include a wholesale drug distributor or pharmacist licensed under chapter 36 of Title 26. (6) “Unrestricted grant” means any gift, payment, subsidy, or other economic benefit to an educational institution, professional association, health care facility, or governmental entity which does not impose any restrictions on the use of the grant, such as favorable treatment of a certain product or an ability of the marketer to control or influence the planning, content, or execution of the education activity. Sec. 128c. 33 V.S.A. § 2005a is added to read: § 2005a. PHARMACEUTICAL MARKETER PRICE DISCLOSURE (a) When a pharmaceutical marketer engages in any form of prescription drug marketing directly to a physician or other person authorized to prescribe prescription drugs, the marketer shall disclose to the physician or other prescriber the average wholesale price (AWP) of the drugs being marketed.

JOURNAL OF THE HOUSE 178 Disclosure shall include the AWP per pill and the price relationship between the drug being marketed and other drugs within the same therapeutic class. (b) The disclosures required under this section shall be on a form and in a manner prescribed by the office of the attorney general. The attorney general may adopt rules to implement the provisions of this section. (c) In addition to any other remedy provided by law, the attorney general after consultation with the commissioner of banking, insurance, securities, and health care administration may file an action in superior court for a violation of this section or of rules adopted under this section. In any such action, the attorney general shall have the same authority to investigate and to obtain remedies as if the action were brought under the consumer fraud act, chapter 63 of Title 9. Each violation of this section or of rules adopted under this section constitutes a separate civil violation for which the attorney general may obtain relief. (d) As used in this section: (1) “Average wholesale price” or “AWP” means the wholesale price charged on a specific commodity that is assigned by the drug manufacturer and listed in a nationally recognized drug pricing file. (2) “Pharmaceutical manufacturing company” is defined by subdivision 2005(c)(2) of this title. (3) “Pharmaceutical marketer” is defined by subdivision 2005(c)(1) of this title. * * * Over the Counter Drugs * * * Sec. 128d. 33 V.S.A. § 1992a is added to read: § 1992a. OVER THE COUNTER DRUG COVERAGE (a) All public pharmaceutical assistance programs shall provide coverage for those over the counter drugs on the preferred drug list developed under section 1998 of this title, provided the drugs are authorized as part of the medical treatment of a specific disease or condition and they are a less costly, medically appropriate substitute for a currently covered prescription drug. (b) The department shall seek any waivers of federal law, rule, or regulation necessary to implement the provisions of this section. * * * Prescription Filling * * * Sec. 128e. 8 V.S.A. § 4089j is added to read: § 4089j. RETAIL PHARMACIES; FILLING OF PRESCRIPTIONS 179 THURSDAY, MAY 20, 2004 (a) A health insurer and pharmacy benefit manager doing business in Vermont shall permit a retail pharmacist licensed under chapter 36 of Title 26 to fill prescriptions in the same manner and at the same level of reimbursement as they are filled by mail order pharmacies with respect to the quantity of drugs or days’ supply of drugs dispensed under each prescription. (b) As used in this section, (1) “Health insurer” is defined by subdivision 9402(9) of Title 18. (2) “Pharmacy benefit manager” means an entity that performs pharmacy benefit management. “Pharmacy benefit management” means an arrangement for the procurement of prescription drugs at negotiated dispensing rates, the administration or management of prescription drug benefits provided by a health insurance plan for the benefit of beneficiaries, or any of the following services provided with regard to the administration of pharmacy benefits: (A) mail service pharmacy; (B) claims processing, retail network management, and payment of claims to pharmacies for prescription drugs dispensed to beneficiaries; (C) clinical formulary development and management services; (D) rebate contracting and administration; (E) certain patient compliance, therapeutic intervention, and generic substitution programs; and (F) disease management programs. (c) This section shall apply to Medicaid, the Vermont health access plan, the VScript pharmaceutical assistance program, and any other public health care assistance program. * * * OTC; Joint Purchasing within Vermont; Counterdetailing * * * Sec. 128f. 33 V.S.A. § 1998 is amended to read: § 1998. PHARMACY BEST PRACTICES AND COST CONTROL PROGRAM ESTABLISHED (a) The commissioner of prevention, assistance, transition, and health access shall establish a pharmacy best practices and cost control program designed to reduce the cost of providing prescription drugs, while maintaining high quality in prescription drug therapies. The program shall include:

JOURNAL OF THE HOUSE 180 (1) A preferred list of covered prescription drugs that identifies preferred choices within therapeutic classes for particular diseases and conditions, including generic alternatives and over-the-counter drugs. (A) The commissioner, and the commissioner of banking, insurance, securities, and health care administration shall implement the preferred drug list as a uniform, statewide preferred drug list by encouraging all health benefit plans in this state to participate in the program. (B) The commissioner of personnel shall use the preferred drug list in the state employees health benefit plan only if participation in the program will provide economic and health benefits to the state employees health benefit plan and to beneficiaries of the plan, and only if agreed to through the bargaining process between the state of Vermont and the authorized representatives of the employees of the state of Vermont. The provisions of this subdivision do not authorize the actuarial pooling of the state employees health benefit plan with any other health benefit plan, unless otherwise agreed to through the bargaining process between the state of Vermont and the authorized representatives of the employees of the state of Vermont. No later than November 1, 2004, the commissioner of personnel shall report to the health access oversight committee and the senate and house committees on health and welfare on whether use of the preferred drug list in the state employees health benefit plan would, in his or her opinion, provide economic and health benefits to the state employees health benefit plan and to beneficiaries of the plan. * * * (4) Education programs, including a counterdetailing With input from physicians, pharmacists, private insurers, hospitals, pharmacy benefit managers, and the drug utilization review board, an evidence-based research education program, designed to provide information and education on the therapeutic and cost-effective utilization of prescription drugs to physicians, pharmacists, and other health care professionals authorized to prescribe and dispense prescription drugs. To the extent possible, the program shall inform prescribers about drug marketing that is intended to circumvent competition from generic alternatives. Details of the program, including the scope of the program and funding recommendations, shall be contained in a report submitted to the health access oversight committee and the senate and house committees on health and welfare no later than January 1, 2005; * * * * * * Expanding Use of 340B Programs * * * Sec. 128g. 33 V.S.A. § 2008 is added to read: 181 THURSDAY, MAY 20, 2004 § 2008. FEDERAL DISCOUNT PROGRAMS; STUDY The commissioner shall study and by January 1, 2005 report to the governor, the senate and house committees on health and welfare and on appropriations, and the health access oversight committee on the feasibility of providing discounted prescription drugs to Vermont’s most vulnerable patient populations through the use of Section 340B of the federal Public Health Service Act, 42 United States Code § 256b (1999). The commissioner shall work with other state agencies, representatives of state employees, and representatives of health care providers and facilities in the state to provide the following information: (1) A description of all health care providers and facilities in the state potentially eligible for designation as “covered entities” under Section 340B, including without limitation all hospitals eligible as disproportionate share hospitals; recipients of grants from the United States Public Health Service; federally qualified health centers; federally qualified look-alikes; state - operated AIDS drug assistance programs; Ryan White CARE Act Title I, Title II, and Title III programs; tuberculosis, black lung, family planning, and sexually transmitted disease clinics; hemophilia treatment centers; public housing primary care clinics; and clinics for homeless people. (2) A listing of potential applications of Section 340B and the potential benefits to public, private, and third-party payors for prescription drugs, including: (A) application to inmates and employees in youth correctional facilities, county jails, and state prisons; (B) maximizing the use of Section 340B within state-funded managed care plans; (C) the inclusion of Section 340B providers in state bulk purchasing initiatives; and (D) using sole source contracts with Section 340B providers to furnish high-cost chronic care drugs. (3) Discounts available through Section 340B contracts, including estimated cost savings to the state as a result of retail mark-up avoidance, negotiated subceiling prices, and coordination with the Medicaid program in order to minimize costs to the program and to other purchasers of prescription drugs. (4) The resources available to potential applicants for designation as covered entities for the application process, establishing a Section 340B program, establishing state qualified health centers with concurrent federally

JOURNAL OF THE HOUSE 182 qualified health center look-alike status, restructuring the health care system, or other methods of lowering the cost of prescription drugs. The resources must include state and federal agencies and private philanthropic grants to be used for the purposes of this section. * * * Mental Health Drugs * * * Sec. 128h. MENTAL HEALTH DRUGS; SUNSET EXTENSION Subdivision (2) of Sec. 5 of No. 127 of the Acts of the 2001 Adj. Sess (2002) is amended to read: (2) Sec. 1, 33 V.S.A. § 1999(d) (prior authorization and drugs used to treat mental illness), shall be repealed on July 1, 2004 2006. The commissioner of prevention, assistance, transition, and 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. The commissioner’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. * * * Medicare Drug Benefit: Impact on Vermont and Coordination with State Programs * * * Sec. 128i. PRESCRIPTION DRUG COVERAGE FOR MEDICARE BENEFICIARIES The department of prevention, assistance, transition, and health access shall analyze the financial impact on the state of Vermont and on Vermont Medicare beneficiaries caused by implementation of the federal Medicare Prescription Drug, Improvement, and Modernization Act of 2003, P.L. 108-173, and report its findings annually to the health access oversight committee and the senate and house committees on health and welfare beginning October 1, 2004. The final report shall be on October 1, 2009. Sec. 128j. PRESCRIPTION DRUG BENEFIT WORKING GROUP The commissioner of aging and disabilities with representatives from the department of prevention, assistance, transition, and health access shall convene a working group of elderly and disabled consumers, advocates, and providers to: (1) develop and implement a plan which at a minimum shall include outreach, education, and assistance to minimize any confusion and duplication of coverage caused by the introduction of the new, federally mandated 183 THURSDAY, MAY 20, 2004 Medicare discount cards to Vermont Medicare beneficiaries, especially those who also are eligible for Medicaid, VHAP-Rx, VScript, VScript Expanded, or Healthy Vermonters; and (2) 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. * * * Prior Authorization Exemption * * * Sec. 128k. 33 V.S.A. § 1999(f) is amended to read: (f) The program’s prior authorization process shall require that the prescriber, not the pharmacy, request a prior authorization exception exemption to the requirements of this section. The No later than December 31, 2004, the commissioner shall create a pilot program may designed to exempt a prescriber from the need to secure prior authorization for a specific drug category requirement of the preferred drug list program if the program determines that the prescriber has written a minimum number of scripts in that category, and the prescriber prescribes prescription drugs on the preferred drug list at or above the minimum threshold for that category met compliance standards established by the department in consultation with the drug utilization review board. This exemption does not apply to drugs that require prior authorization for clinical reasons. * * * Reimportation * * * Sec. 128l. 8 V.S.A. § 4089i is added to read: § 4089i. PRESCRIPTION DRUG COVERAGE A health insurance or other health benefit plan offered by a health insurer shall provide coverage for prescription drugs purchased in Canada, and used in Canada or reimported legally, on the same benefit terms and conditions as prescription drugs purchased in this country. For drugs purchased by mail or through the internet, the plan may require accreditation by the Internet and Mailorder Pharmacy Accreditation Commission (IMPAC™) or similar organization.

JOURNAL OF THE HOUSE 184 Sec. 128m. 33 V.S.A. § 2007 is added to read: § 2007. CANADIAN PRESCRIPTION DRUG INFORMATION PROGRAM The department of prevention, assistance, transition, and health access shall establish a website and prepare written information to offer guidance to Vermont residents seeking information about ordering prescription drugs through the mail or otherwise from a participating Canadian pharmacy. Sec. 128n. APPLICABILITY; STATUTORY REVISION The statutory revision commission is directed to recodify 8 V.S.A. §§ 4089i and 4089j (health care ombudsman) as 8 V.S.A. §§ 4089v and 4089w, respectively. * * * Healthy Vermonters Expansion * * * Sec. 128o. 33 V.S.A. § 2003 is amended to read: § 2003. PHARMACY DISCOUNT PLAN PLANS (a) On or before July 1, 2002, the The commissioner shall implement a pharmacy discount plan plans, to be known as the “Healthy Vermonters” program and the “Healthy Vermonters Plus”program, for Vermonters without adequate coverage for prescription drugs. The provisions of section 1992 of this title shall apply to the commissioner’s authority to administer the pharmacy discount plan plans established by this section. The commissioner may establish an enrollment fee in such amount as is necessary to support the administrative costs of the plan. (b) The pharmacy discount plan authorized by this section Healthy Vermonters program shall include a program implemented as a Section 1115 Medicaid waiver, wherein the state makes a payment toward the cost of the drugs dispensed to individuals enrolled in this program of at least two percent of the cost of each prescription or refill, consistent with the appropriation for the program established by this section offer beneficiaries an initial discounted cost for covered drugs. Upon approval by the Centers for Medicare and Medicaid Services of a Section 1115 Medicaid waiver program, and upon subsequent legislative approval, the Healthy Vermonters program and the Healthy Vermonters Plus program shall offer beneficiaries a secondary discounted cost, which shall reflect a state payment toward the cost of each dispensed drug as well as any rebate amount negotiated by the commissioner. (c) The commissioner shall implement the pharmacy discount program authorized by this section without any financial contribution by the state otherwise required by subsection (b) of this section, and without federal waiver approval during such time as federal waiver approval has not been secured. 185 THURSDAY, MAY 20, 2004 (d) As used in this section: (1) “Beneficiary” means any individual enrolled in either the Healthy Vermonters program or the Healthy Vermonters Plus program. (2) “Eligible Healthy Vermonters beneficiary” means any individual Vermont resident without adequate coverage : (A) who is at least 65 years of age, or is disabled and is eligible for Medicare or Social Security disability benefits, with household income equal to or less than 400 percent of the federal poverty level, as calculated under the rules of the Vermont health access plan, as amended, and any other individual Vermont resident with; or (B) whose household income is equal to or less than 300 percent of the federal poverty level, as calculated under the rules of the Vermont Health access plan, as amended; and. (3) “Healthy Vermonters Plus beneficiary” means any individual Vermont resident without adequate coverage : (A) whose household income is greater than 300 percent and equal to or less than 350 percent of the federal poverty level, as calculated under the rules of the Vermont health access plan, as amended; or (B) whose family incurs unreimbursed expenses for prescription drugs, including insurance premiums, that equal five percent or more of household income or whose total unreimbursed medical expenses, including insurance premiums, equal 15 percent or more of household income. (4) “Initial discounted cost” means the price of the drug based on the Medicaid fee schedule. (5) “Labeler” means an entity or person that receives prescription drugs from a manufacturer or wholesaler and repackages those drugs for later retail sale and that has a labeler code from the federal Food and Drug Administration under 21 Code of Federal Regulations, 207.20 (1999). (6) “Participating retail pharmacy” means a retail pharmacy located in this state or another business licensed to dispense prescription drugs in this state that participates in the program according to rules established by the department and provides discounted prices to eligible beneficiaries of the program. (7) “Rebate amount” means the rebate negotiated by the commissioner and required from a drug manufacturer or labeler under this section. In determining the appropriate rebate, the commissioner shall:

JOURNAL OF THE HOUSE 186 (A) take into consideration the rebate calculated under the Medicaid Rebate Program under section 1396r-8 of Title 42 of the United States Code, the average wholesale price of prescription drugs, and any other information on prescription drug prices and price discounts; (B) use his or her best efforts to obtain an initial rebate amount equal to or greater than the rebate calculated under the Medicaid program under section 1396r-8 of Title 42 of the United States Code; (C) use his or her best efforts to obtain an amount equal to or greater than the amount of any discount, rebate, or price reduction for prescription drugs provided to the federal government. (8) “Secondary discounted cost” means, under the Healthy Vermonters program, the price of the drug based on the Medicaid fee schedule, less payment by the state of at least two percent of the Medicaid rate, less any rebate amount negotiated by the commissioner and paid for out of the Healthy Vermonters dedicated fund established under subsection (j) of this section and, under the Healthy Vermonters Plus program, the average wholesale price of the drug, less payment by the state of at least two percent of the Medicaid rate, less any rebate amount negotiated by the commissioner and paid for out of the Healthy Vermonters dedicated fund established under subsection (j). (2)(9) “Vermonter without Without adequate coverage” includes eligible beneficiaries with no coverage for prescription drugs or certain types of prescription drugs, and eligible beneficiaries whose annual maximum coverage limit under their health benefit plan has been reached. (d) Drugs covered by the pharmacy discount plans shall include all drugs covered under the Medicaid program. (e) The Vermont board of pharmacy shall adopt standards of practice requiring disclosure by participating retail pharmacies to beneficiaries of the amount of savings provided as a result of the pharmacy discount plans. The standards must consider and protect information that is proprietary in nature. The department may not impose transaction charges under this program on pharmacies that submit claims or receive payments under the plans. Pharmacies shall submit claims to the department to verify the amount charged to beneficiaries under the plans. On a weekly or biweekly basis, the department must reimburse pharmacies for the difference between the initial discounted price or the average wholesale price and the secondary discounted price provided to beneficiaries. (f) The names of drug manufacturers and labelers who do and do not enter into rebate agreements under pharmacy discount plans are public information. 187 THURSDAY, MAY 20, 2004 The department shall release this information to health care providers and the public on a regular basis and shall publicize participation by manufacturers and labelers. The department shall impose prior authorization requirements in the Medicaid program, as permitted by law, to the extent the department determines it is appropriate to do so in order to encourage manufacturer and labeler participation in the pharmacy discount plans and so long as the additional prior authorization requirements remain consistent with the goals of the Medicaid program and the requirements of Title XIX of the federal Social Security Act. (g) The commissioner shall establish, by rule, a process to resolve discrepancies in rebate amounts claimed by manufacturers, labelers, pharmacies, and the department. (h) The Healthy Vermonters dedicated fund is established to receive revenue from manufacturers and labelers who pay rebates as provided in subdivision (d)(5) of this section and any appropriations or allocations designated for the fund. The purposes of the fund are to reimburse retail pharmacies for discounted prices provided to individuals enrolled in the pharmacy discount plans; and to reimburse the department for contracted services, including pharmacy claims processing fees, administrative and associated computer costs, and other reasonable program costs. The fund is a nonlapsing dedicated fund. Interest on fund balances accrues to the fund. Surplus funds in the fund must be used for the benefit of the program. (i) Annually, the department shall report the enrollment and financial status of the pharmacy discount plans to the health access oversight committee by September 1, and to the general assembly by January 1. (j) The department shall undertake outreach efforts to build public awareness of the pharmacy discount plans and maximize enrollment. Outreach efforts shall include steps to educate retail pharmacists on the purposes of the Healthy Vermonters dedicated fund, in particular as it relates to pharmacy reimbursements for discounted prices provided to program enrollees. The department may adjust the requirements and terms of the pharmacy discount plans to accommodate any new federally funded prescription drug programs. (k) The department may contract with a third party or third parties to administer any or all components of the pharmacy discount plans, including outreach, eligibility, claims, administration, and rebate recovery and redistribution. (l) The department shall administer the pharmacy discount plans and other medical and pharmaceutical assistance programs under this title in a manner advantageous to the programs and enrollees. In implementing this section, the

JOURNAL OF THE HOUSE 188 department may coordinate the other programs and the pharmacy discount plans and may take actions to enhance efficiency, reduce the cost of prescription drugs, and maximize benefits to the programs and enrollees, including providing the benefits of pharmacy discount plans to enrollees in other programs. (m) The department may adopt rules to implement the provisions of this section. (n) The department shall seek a waiver from the Centers for Medicare and Medicaid Services (CMS) requesting authorization necessary to implement the provisions of this section, including application of manufacturer and labeler rebates to the pharmacy discount plans. The secondary discounted cost shall not be available to beneficiaries of the pharmacy discount plans until the department receives written notification from CMS that the waiver requested under this section has been approved and until the general assembly subsequently approves all aspects of the pharmacy discount plans, including funding for positions and related operating costs associated with eligibility determinations. Sec. 129. Sec. 147(d) of No. 66 of the Acts of 2003 is amended to read: (d) VHAP, premium-based. * * * (2) The department 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 less than or equal to 50 percent of FPL: $4.00 per month. (B)(A) Income greater than 50 percent and less than or equal to 75 percent of FPL: $10.00 per month. (C)(B) Income greater than 75 percent and less than or equal to 100 percent of FPL: $35.00 per month. (D)(C) Income greater than 100 percent and less than or equal to 150 percent of FPL: $45.00 per month. (E)(D) Income greater than 150 percent and less than or equal to 185 percent of FPL: $65.00 per month. (3) The department shall establish per household premiums for the working people with disabilities program for the following brackets of income for the Medicaid group as a percentage of federal poverty level (FPL): (A) Income greater than 185 percent of FPL and less than or equal to 189 THURSDAY, MAY 20, 2004 225 percent of FPL: $50.00 per month. (B) Income greater than 225 percent of FPL and less than or equal to 250 percent of FPL, without other health insurance coverage: $75.00 per month. (C) Income greater than 225 percent of FPL and less than or equal to 250 percent of FPL, with other health insurance coverage: $60.00 per month. Sec. 129a. Sec. 152 of No. 66 of the Acts of 2003 is amended to read: Sec. 152. THE ADOPTION OF PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH ACCESS RULES (a) Notwithstanding any provisions to the contrary in 3 V.S.A. chapter 25, the commissioner of prevention, assistance, transition, and health access may adopt rules in order that changes reflected in Sec. 147 subsections (b), (c), (d) (3), (f)(1), (j), (k) and (l) of this act shall be implemented by July 1, 2003. These rules shall be effective upon filing with the secretary of state, and the changes authorized therein shall be implemented no sooner than 10 days following the mailing of adverse action notice and shall have the full force and effect of rules adopted pursuant to 3 V.S.A. chapter 25. Any such rules filed by the commissioner with the secretary of state 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 commissioner that the rule is required to meet the purposes of this section. Rules adopted under this subsection shall remain in effect until December 31, 2003 or until amended by rules adopted pursuant to the provisions of Sec. 152a of this act. Notwithstanding the provisions to the contrary of 3 V.S.A. chapter 25, the commissioner may file prior to and adopt, effective as soon as promulgated, all rules necessary to exempt all individuals domiciled in the state of Vermont from the implementation of Sec. 115(a) of Public Law 104-193 through June 30, 2004. Sec. 130. Sec. 147(g) of No. 66 of the Acts of 2003 is amended to read: (g) Premium billing, collections and nonpayment. (1) The commissioner shall make such changes in the billing and collection process as are necessary to minimize administrative effort and uncollected premiums effective January 1, 2004. The changes in the following subdivisions (A), (B), and (D)(iii) shall be effective January 1, 2004. The changes in the following subdivisions (C), (D)(i), and (D)(iv)-(vi) shall be effective August 1, 2004 The changes in subdivision (D)(ii) shall be implemented as soon as administratively feasible. These changes shall include: (A) Shifting from retrospective to prospective billing.

JOURNAL OF THE HOUSE 190 (B) Continuing the current billing approach for all groups currently paying program fees until the new billing approach is approved and ready to be implemented. (C) Adjusting the billing cycle for premiums to facilitate efforts by beneficiaries to stay current and avoid delinquencies. (D) Requiring beneficiaries to pay prospectively a premium equivalent to one month of coverage before initial enrollment, so that: (i) if a premium is received and processed prior to the first day of the current month, then full coverage shall begin on the first day of the current month; (ii) if a premium is received and processed after the first day of the current month, then full coverage shall begin on the first day of the following month; (iii) for applicants seeking VHAP coverage, limited coverage (essential hospital, physician and pharmaceutical coverage) shall be provided at no cost between the date that the beneficiary is determined eligible and the date that full coverage begins, contingent upon receipt of premium payment; (iv) VHAP beneficiaries shall receive a notice of eligibility determination that includes a description of the limited coverage and a warning that if the premium is not paid, the beneficiary shall be responsible for all bills incurred in the interim; (v) for applicants seeking VHAP coverage if payment of the premium is not received by the due date, no payment shall be made for any care received after eligibility is determined; (vi) if a VHAP beneficiary’s coverage is cancelled and the beneficiary attempts to reenroll within 12 months, no limited benefit coverage shall be provided, except under the following circumstances: (aa) the applicant or spouse had employer or university-sponsored insurance that terminated; (bb) the applicant’s household income dropped below 75 percent of FPL; (cc) the applicant established residence in another state for more than 30 days and subsequently returned to Vermont; (dd) medical incapacity during the period when premium payments were due; (vii) following payment of the initial premium, premium bills for 191 THURSDAY, MAY 20, 2004 subsequent months shall be sent at least 25 days before enrollment may be closed; (viii) for subsequent months, notice shall be sent at least 10 days before closure for nonpayment of premiums; (ix) for subsequent months, eligibility shall be reinstated if payment of premiums is received by the last day of month; (x) for the VHAP Pharmacy, VScript and VScript expanded programs, the prospective billing mechanism described above in Sec. 147 (g) (1)(D)(i)-(ii) shall apply. Limited coverage, described above in Sec. 147 (g)(1) (D)(iii), is not available. If a beneficiary’s coverage is cancelled for nonpayment of premium due to medical incapacity during the period when premium payments were due, the department will provide coverage between the date that the coverage lapsed due to nonpayment of the premium and the last day of the current month, provided that the beneficiary will be responsible for all bills incurred during this period if all premium payments due are not received by the last day of the current month; (xi) for pregnant women and children participating in the Dr. Dynasaur, underinsured children, and the SCHIP programs coverage groups, the prospective billing mechanism described above in Sec. 147(g)(1)(D)(i)-(ii) shall apply. Limited coverage, described above in Sec. 147(g)(1)(D)(iii), is not available. Provisions of federal law permitting retroactive coverage shall apply, subject to payment of premiums for any such retroactive coverage sought by the beneficiary; (xii) for beneficiaries participating in the Working People with Disabilities program, the prospective billing mechanism described above in Sec. 147 (g)(1)(D)(i)-(ii) shall apply. Limited coverage, described above in Sec. 147 (g)(1)(D)(iii), is not available. Provisions of federal law permitting retroactive coverage shall apply, subject to payment of premiums for any such retroactive coverage sought by the beneficiary. If a beneficiary’s coverage is cancelled and the beneficiary attempts to reenroll within twelve months, contingent upon federal approval, three-month retroactive coverage will not be provided, except under the following circumstances: (aa) the applicant or spouse had employer or university- sponsored insurance that terminated; (bb) the applicant’s household income dropped below 75% of FPL; (cc) the applicant established residence in another state for more than 30 days and subsequently returned to Vermont;

JOURNAL OF THE HOUSE 192 (dd) medical incapacity during the period when premium payments were due. * * * Sec. 130a. 33 V.S.A. § 1901c is added to read: § 1901c. MEDICAL CARE ADVISORY COMMITTEE (a) The commissioner shall appoint a medical care advisory committee to advise the department about health care and medical services, consistent with the requirements of federal law. (b) The medical care advisory committee shall be given an opportunity to participate in policy development and program administration for Medicaid and for the VHAP and VScript programs, as they are defined in section 1901b of this subchapter. It shall have an opportunity to review and comment upon agency policy initiatives pertaining to health care benefits and beneficiary eligibility. It also shall have the opportunity to comment on proposed rules prior to commencement of the rulemaking process and on waiver or waiver amendment applications prior to submission to the Centers for Medicare and Medicaid Services. Prior to the annual budget development process, the department shall engage the medical care advisory committee in priority setting, including consideration of scope of benefits, beneficiary eligibility, funding outlook, financing options, and possible budget recommendations. (c) The medical care advisory committee shall make policy recommendations on department proposals to the department, the health access oversight committee, and the standing committees on health and welfare. When the general assembly is not in session, the commissioner shall respond in writing to these recommendations, a copy of which shall be provided to each of the legislative committees. (d) During the legislative session, the commissioner shall provide the committee at regularly scheduled meetings updates on the status of policy and budget proposals. (e) The commissioner shall convene the medical care advisory committee at least six times each year. (f) At least one-third of the members of the medical care advisory committee shall be recipients of Medicaid, VHAP, or VScript. Such members shall receive per diem compensation and reimbursement of expenses pursuant to section 1010 of Title 32, including costs of travel, child care, personal assistance services, and any other service necessary for participation on the committee approved by the commissioner . 193 THURSDAY, MAY 20, 2004 (g) The commissioner shall appoint members of the medical care advisory committee for staggered, nonrecurring three-year terms. The commissioner may remove members of the committee who fail to attend three consecutive meetings and appoint replacements. (h) For purposes of this section, “program administration” means annual and long-term strategic planning, including priority setting, relative to scope of benefits, beneficiary eligibility, funding outlook, financing options, and possible budget recommendations. Sec. 131. RULES SUSPENSION PURSUANT TO FEDERAL APPROVAL (a) The rules adopted by the department of prevention, assistance, transition, and health access pursuant to Sec. 147(k) of No. 66 of the Acts of 2003 shall be amended based upon guidance received from the Center for Medicare and Medicaid Services which has approved valuation of United States savings bonds as a resource beginning on the date of purchase unless individuals have requested and been denied a hardship waiver from the United States Department of the Treasury, Bureau of Public Debt. (b) Notwithstanding any provisions to the contrary in 3 V.S.A. chapter 25, the commissioner of prevention, assistance, transition, and health access shall adopt rules to implement the changes reflected in Sec. 131 (a) of this act by July 1, 2004. The commissioner shall file these rules with the secretary of state. The secretary of state shall accept the rules and deem them to be in full compliance with 3 V.S.A. § 843, if filed with a certification by the commissioner that the rule is required to meet the purposes of this section. These rules shall be effective upon filing with the secretary of state, and the changes authorized therein shall have the full force and effect of rules adopted pursuant to 3 V.S.A. chapter 25. Rules adopted under this subsection shall remain in effect until amended by rules adopted pursuant to 3 V.S.A. chapter 25. Sec. 132. [Deleted] Sec. 133. 33 V.S.A. § 1973 is added to read: § 1973. VERMONT HEALTH ACCESS PLAN (a) The department of prevention, assistance, transition, and health access shall establish the Vermont health access plan (VHAP) pursuant to a waiver of federal Medicaid law. The plan shall remain in effect as long as the federal waiver is granted or renewed. (b) The purpose of the Vermont health access plan is to provide health care coverage for uninsured or underinsured low income Vermonters. The commissioner of the department of prevention, assistance, transition, and

JOURNAL OF THE HOUSE 194 health access shall establish rules regarding eligibility and administration of the plan. Sec. 134. Prevention, assistance, transition, and health access - general assistance Grants 4,376,260 Source of Funds General fund 3,264,939 Special funds 1 Federal funds 1,111,320 Total 4,376,260 (a) Of the above appropriation, $527,000.00 in federal TANF funds and $50,000.00 in general funds are allocated specifically for assistance to families who demonstrate they are faced with a reasonably preventable loss of housing and who meet state requirements for this assistance, as established by rule. Of the above general fund appropriation, $50,000.00 shall be used for the “Category II” rental assistance program. 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 $150,000.00 ($75,000.00 in federal TANF funds and $75,000.00 in general funds) may be expended for temporary housing assistance to individuals and families that have reached the 28-day maximum allowed under department rules 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. 135. Prevention, assistance, transition, and health access - home heating fuel assistance/LIHEAP Personal services 20,000 Operating expenses 90,000 Grants 8,352,075 Total 8,462,075 Source of Funds Special funds 8,462,075 (a) Of the funds appropriated for home heating fuel assistance/LIHEAP in this act, no more than $350,000.00 shall be expended for crisis fuel direct service/administration exclusive of statewide after hours crisis coverage. 195 THURSDAY, MAY 20, 2004 Sec. 136. WEATHERIZATION FUND ANALYSIS (a) On or before December 15 of each year, the department of public service and the agency of human services in consultation with the joint fiscal office shall develop and submit a report to the senate and house committees on appropriations which provides: (1) any projected or actual reserves in the special fund established pursuant to 33 V.S.A. § 2503, the expenditure of which would not adversely impact ongoing levels of weatherization services; and (2) an analysis of the projected need of households eligible for fuel assistance in meeting their heating bills in the current heating season as compared to previous heating seasons. A heating season shall be defined as the six months from October through March. Sec. 137. PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH ACCESS - 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 2005 and all unexpended LIHEAP funds granted to the state in fiscal year 2004 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, 2004, and program administration, the commissioner of finance and management shall transfer $2,550,000.00 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 2004-2005 crisis set-aside and seasonal home heating fuel assistance through December 31, 2004, and LIHEAP funds awarded as of December 31, 2004 for fiscal year 2005 do not exceed $2,550.000.00, subsequent payments under the home heating fuel assistance program shall not precede January 30, 2005. 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, 2004, the commissioner of finance and management may anticipate receipts into the home weatherization assistance trust fund. Sec. 138. Prevention, assistance, transition, and health access - food stamp

JOURNAL OF THE HOUSE 196 cash out Grants 5,764,119 Source of Funds Federal funds 5,764,119 Sec. 139. 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, 2005. Sec. 139a. 33 V.S.A. § 101(4) is amended to read: (4) Assistance and benefits shall be so administered as to maintain and encourage dignity, self-respect, and self-reliance. It is the legislative intent that assistance granted shall be adequate to maintain a reasonable standard of health and decency based on current cost of living indices. Notwithstanding this subdivision, the department will amend rules that establish new maximum Reach Up grant amounts only when the general assembly has taken affirmative action to increase or decrease the Reach Up financial assistance appropriation. Sec. 140. Developmental and mental health services - central office Personal services 2,439,723 Operating expenses 788,274 Total 3,227,997 Source of Funds General fund 1,423,598 Federal funds 1,804,399 Total 3,227,997 (a) The commissioner of the department of developmental and mental health services shall collaborate with the housing and conservation board and the Vermont housing finance agency to determine whether there would be substantial savings by refinancing long-term capital debt on land and buildings owned by community mental health centers and used as housing for low income Vermonters with physical or mental disabilities. The commissioner, board, and agency shall jointly provide a written report of the findings and conclusions to the house and senate committees on appropriations by January 31, 2005. Sec. 141. COMMITTEE ON DEPARTMENT OF DEVELOPMENTAL AND MENTAL HEALTH SERVICES DESIGNATED AGENCY PROVIDER SYSTEM 197 THURSDAY, MAY 20, 2004 (a) It is the intent of the general assembly to ensure that consumers have access to a comprehensive and adequate continuum of care, and that the department of developmental and mental health services designated agency provider system is financially sustainable. (b) There is created a committee to study and report on the department of developmental and mental health services designated agency provider system. The committee shall be broadly constituted of individuals with knowledge and interest in the subject matter areas. Members shall be appointed upon passage of this act and shall include: (1) the secretary of human services or designee; (2) the commissioner of developmental and mental health services or designee; (3) the commissioner of health or designee; (4) the commissioner of aging and disabilities or designee; (5) at least four members selected by the Vermont council on developmental and mental health services; (6) one member selected by the Vermont association for mental health; (7) one current or recent recipient of community developmental services; (8) one current or recent recipient of community mental health services; (9) one representative of the department of finance and management; (10) one member selected by the Vermont association of hospital and health systems; and (11) other members as necessary to accomplish the purposes of this section. (c) In studying the department of developmental and mental health services designated agency provider system, the secretary and the committee shall consider the following: (1) issues relative to the delivery of services, including best practice models, group versus individualized services, preventive and primary care, service coordination options, and cost-effective approaches to delivering services; (2) ways to ensure funding parity among mental health, substance abuse, and physical health; (3) baseline infrastructure requirements;

JOURNAL OF THE HOUSE 198 (4) whether the system is underfunded and, if so, the impact of such underfunding; (5) issues relative to realistic service expectations, including reasonable reimbursement rates and funding mechanisms that correlate with utilization trends; (6) issues relative to human resources, including recruitment and retention strategies, training and education, licensing requirements, and competitive compensation; and (7) issues relative to efficient business practices, including group purchasing of health insurance, workers’ compensation, information technology, and business supplies; and efficient practices for revenue collection. (d) The agency of human services shall contract with a third party consultant to review and make recommendations regarding the financial sustainability of the department of developmental and mental health services designated agency provider system. The secretary or designee, in collaboration with the committee, shall design the scope of work, design request for proposals, and select a consultant. The consultant selected by the agency shall submit its report to the secretary and the committee no later than November 1, 2004. (e) On or before November 15, 2004, the secretary, in collaboration with the committee, shall provide a report, including the underlying data, regarding the financial sustainability, resources, efficiency, and services offered by designated provider agencies to the mental health oversight committee. The agency of human services shall ensure that the research is inclusive of the above elements and shall address the range of services or rate of any growth in the need of services. (f) On or before December 15, 2004, the secretary shall file a report with the governor and the general assembly detailing the findings and recommendations with respect to the issues covered in subsections (c), (d), and (e) of this section, including comments from the mental health oversight committee. In addition, the report shall include recommendations for the short - and long - term financial sustainability of the department of developmental and mental health services designated agency provider system, including options to create more reliable annual budget decisions. (g) The committee is authorized to meet up to six times per year and shall cease to exist on July 1, 2006. 199 THURSDAY, MAY 20, 2004 Sec. 141a. VERMONT STATE HOSPITAL FUTURE PLANNING ADVISORY GROUP ( a) It is the intent of the general assembly that all mental health programs, services, and supports, including inpatient psychiatric services, be provided to individuals with psychiatric disabilities or diagnoses or emotional disorders in a holistic, comprehensive continuum of care, that consumers be treated at all times with dignity and respect, that public resources be allocated efficiently and produce the best positive outcomes, and that direct services overseen and provided by the agency of human services and its community partners be client- and family-centered and - driven, accessible, and culturally competent. (b) The secretary of human services shall be responsible for the development and, upon approval by the mental health oversight committee and joint fiscal committee, implementation of a comprehensive strategic plan for the delivery of services currently provided by the Vermont state hospital developed within the context of long-range planning for a comprehensive continuum of care for mental health services. The secretary shall upon passage establish a statewide state hospital future planning advisory group to advise the secretary on development and implementation of a strategic plan related to developing alternatives to the services currently provided by the Vermont state hospital. (c) The members of the state hospital future planning advisory group may consist of the members of the current Vermont state hospital advisory committee. If the members of the Vermont state hospital advisory committee are unwilling or unable to serve as the members of the state hospital future planning advisory group for some or all of the functions identified in this section, a specific group shall be created with members appointed by the secretary. In either instance, the state hospital future planning advisory group shall have members representing the following: designated community mental health agencies; designated hospitals; the adult program standing committee; consumers and their family members; psychiatric and nursing staff of the Vermont state hospital; a recent patient of the Vermont state hospital; patient rights protection organizations; Vermont legal aid; the department of corrections; developmental services; child and adolescent mental health services; the Vermont psychiatric association; the Vermont psychological association; and the Vermont state employees’ association. (d) Members of the state hospital future planning advisory group not receiving compensation for service on the advisory group from another source are entitled to compensation under section 1010 of Title 32.

JOURNAL OF THE HOUSE 200 (e) The secretary or designee shall consult with the advisory group on all aspects of strategic planning, including methods of seeking further public input, investigation of program options and policies, and recommendations concerning organization, operations, funding, and implementation. (f) The principles guiding the state hospital future planning advisory group in creating the immediate and long - term plans for the Vermont state hospital shall include the following: (1) an understanding of the role of active treatment within the goal of recovery; (2) an understanding of the role of trauma in the lives of individuals; (3) accessible general medical care; (4) minimal use of involuntary interventions such as seclusion, restraint, and involuntary medication; (5) staff training in the use of safe and appropriate alternatives to involuntary interventions; (6) consumers’ participation in the development and implementation of their treatment plans; (7) consumers’ right to privacy and the right to have information regarding their care remain confidential, unless disclosure is authorized by the consumer or required under the law; (8) ongoing consumer and community input with regard to program oversight and development; and (9) accountability for all components of the mental health care system. (g) The state hospital future planning advisory group shall consider and make recommendations to the secretary on the following: (1) in general, the future of Vermont’s inpatient psychiatric programs, including those currently provided by the Vermont state hospital and, more specifically, whether new general or forensic inpatient programs should be created, either in partnership with designated hospitals or with hospitals or other facilities that do not currently provide inpatient psychiatric services; (2) designs for programs that are responsive to changes over time in levels and types of need, service delivery practices, and sources of funding; (3) whether designated hospitals should be encouraged to expand existing psychiatric services; 201 THURSDAY, MAY 20, 2004 (4) whether additional community-based, hospital alternative, or diversion programs should be developed; (5) whether the state should expand community - based peer run programs; (6) whether to create a flexible individual case management program to fund support services necessary to keep individuals out of the hospital; (7) how to design mental health services to maximize safety and ensure appropriate protection for the legal rights of consumers; (8) the development of ongoing quality monitoring and consumer satisfaction programs; (9) methods for maximizing federal funding sources and mental health coverage under private and public insurance plans; (10) the necessity of developing housing alternatives, including group homes, supportive housing, and independent living options; (11) the integration of primary care with the mental health system of care, including the need for education on the appropriate uses of psychotropic medications and follow-up care; (12) governance issues, including governance of the Vermont state hospital and an assessment of the role of the board of mental health and whether new members should be appointed; and (13) ways to improve judicial proceedings concerning involuntary treatment and involuntary medication. (h) On or before October 15, 2004, the secretary shall prepare and present for approval to the mental health oversight committee an outline of the findings and recommendations for replacement of the functions of the Vermont state hospital. (i) On or before January 15, 2005, the secretary shall prepare and present to the mental health oversight committee and the joint fiscal committee a report containing a comprehensive implementation plan for replacing the services currently provided by the Vermont state hospital developed within the context of long-range planning for a comprehensive continuum of care for mental health services. The report shall include proposals for legislation and capital and operational funding needed to implement the plan. (j) For purposes of this section, the state hospital future planning advisory group shall cease to exist on July 1, 2006.

JOURNAL OF THE HOUSE 202 Sec. 141b. THE DEPARTMENT OF CORRECTIONS MENTAL HEALTH SERVICES PLAN (a) The commissioner of corrections shall provide the mental health oversight committee with the corrections mental health services plan no later than January 15, 2005. (b) The secretary shall ensure that the findings and recommendations of the corrections mental health services plan be coordinated with and complementary to the findings and recommendations required by Secs. 141a and 141b of this act. Sec. 141c. THE MENTAL HEALTH OVERSIGHT COMMITTEE (a) The mental health oversight committee is created to oversee the development and implementation of the secretary of human services’ strategic plan to develop alternatives for services currently provided by the Vermont state hospital and to ensure that consumers have access to a comprehensive and adequate continuum of care and Vermont has a financially sustainable department of developmental and mental health services designated agency provider system. The committee shall be composed of one member from each of the house committees on health and welfare, institutions, and appropriations and a member-at-large to be appointed by the speaker of the house, not all from the same party, and one member from each of the senate committees on health and welfare, institutions, and appropriations and one member-at-large to be appointed by the committee on committees, not all from the same party. Initial appointments shall be made upon passage. (b) The committee shall review whether the secretary’s study on the department of developmental and mental health services designated agency provider system required in Sec. 141 of this act, the strategic plan for developing alternatives to the Vermont state hospital required in Sec. 141a of this act, and the department of corrections mental health services plan achieve the goals and principles stated herein effectively, efficiently, and satisfactorily, including that the findings and recommendations of the reports are coordinated and complementary. The committee shall specifically: (1) solicit input from individuals and their families served by the mental health system; (2) monitor the study and planning processes and time lines; (3) measure the efforts of the agency of human services against the goals and principles described in this act; and 203 THURSDAY, MAY 20, 2004 (4) review and approve, modify, or disapprove the recommendations contained in the reports required by Secs. 141 and 141a of this act and authorize preliminary implementation steps for developing alternatives to the services currently provided by the Vermont state hospital developed within the context of long-range planning for a comprehensive continuum of care for mental health services. (c) Based on the reports required by Secs. 141, 141a, and 141b of this act, the committee shall recommend areas of further study needed to develop a comprehensive continuum of care for mental health services. (d) The committee is authorized to meet up to six times per year while the general assembly is not in session to perform its functions under this section. (e) The secretary of the agency of human services shall report to the committee as required by the committee and Secs. 141 and 141a of this act and this section. (f) Members of the committee shall be entitled to compensation and reimbursement for expenses under section 406 of Title 2. (g) The secretary of administration, the legislative council, and the joint fiscal office shall provide staff support requested by the committee. (h) The committee shall cease to exist on July 1, 2006. * * *Licensing of the State Hospital* * * Sec. 141d. 18 V.S.A. § 1902(1)(I) is amended to read: (I) The provisions of this subdivision (1) do not apply to any of the following institutions: (i) Nursing and convalescent homes, boarding homes, homes for the aged, nurseries, and institutions used primarily for domiciliary care; (ii) Any hospital conducted, maintained, or operated by the United States government, the state of Vermont, or a duly authorized agency thereof. The commissioner of health may develop interim licensing criteria specific to the Vermont state hospital that shall be applicable until the hospital achieves recertification by the federal Centers for Medicare and Medicaid Services or until January 31, 2005, whichever occurs first. Sec. 141e. 18 V.S.A. § 7511 is added to read: § 7511. TRANSPORTATION (a) The commissioner shall ensure that all reasonable and appropriate efforts consistent with public safety are made to transport or escort a person

JOURNAL OF THE HOUSE 204 subject to this chapter to and from any inpatient setting, including escorts within a designated hospital or the Vermont state hospital, in a manner which: (1) prevents physical and psychological trauma; (2) respects the privacy of the individual; and (3) represents the least restrictive means necessary for the safety of the patient. (b) The commissioner shall have the authority to designate by rule the professionals who may transport patients under the commissioner’s care and custody. Sec. 142. Developmental and mental health services - community mental health Personal services 3,007,985 Operating expenses 453,111 Grants 103,035,192 Total 106,496,288 Source of Funds General fund 35,947,821 Special funds 7,775,810 Federal funds 58,369,269 Interdepartmental transfer 4,403,388 Total 106,496,288 Sec. 143. Developmental and mental health services - developmental services Personal services 3,196,296 Operating expenses 498,012 Grants 95,811,783 Total 99,506,091 Source of Funds General fund 38,524,746 Special funds 905,890 Federal funds 58,943,955 Interdepartmental transfer 1,131,500 Total 99,506,091 Sec. 144. Developmental and mental health services - Vermont state hospital Personal services 13,096,501 Operating expenses 1,576,303 Grants 3,000 Total 14,675,804 205 THURSDAY, MAY 20, 2004 Source of Funds General fund 1,1867,915 Special funds 110,000 Federal funds 572,426 Interdepartmental transfer 13,875,463 Total 14,675,804 Sec. 145. Aging and disabilities - administration and support Personal services 15,221,670 Operating expenses 2,498,348 Total 17,720,018 Source of Funds General fund 4,632,832 Special funds 782,599 Federal funds 11,300,136 Interdepartmental transfer 1,004,451 Total 17,720,018 (a) Of the above appropriation, at least $10,000.00 shall be expended by the department for the support of “The Independent,” an independent newsletter to provide information and education on aging and disabilities issues. Sec. 146. Aging and disabilities - division of advocacy and independent living Grants 22,331,687 Source of Funds General fund 8,783,764 Transportation fund 419,330 Special funds 801,981 Federal funds 12,249,612 Interdepartmental transfer 77,000 Total 22,331,687 (a) Notwithstanding 32 V.S.A. § 706, the department may transfer up to $250,000.00 in general funds for the elderly mental health initiative to the department of developmental and mental health services to maximize the use of Medicaid funds. (b) Of the above general fund appropriation, $50,000.00 shall be used for infrastructure improvements to expand and/or enhance certified adult day center facilities. Funds shall be distributed through a competitive process, with priority given to centers which are building new facilities, making additions, or otherwise adding capacity.

JOURNAL OF THE HOUSE 206 (c) Of the above general fund appropriation, $45,000.00 shall be appropriated to senior centers in Vermont through competitive grants submitted to the commissioner of aging and disabilities except that a grant of $2,500.00 shall be made to the Poultney senior center. In awarding grants, the commissioner shall consider at a minimum the following factors: offering meal programs as an integral part of the centers' activities; attracting or sustaining participants to the center; ability to promote creative successful aging programs; ability to leverage local funds; and statewide distribution of grant monies. The commissioner may assist centers with their applications where the centers lack the resources to apply independently and shall consult with local area agencies on aging as to regional needs. (d) Prior to the implementation of new programs or expansion of existing programs resulting from federal approval of an 1115 waiver for community- based long-term care, the agency of human services and the department of aging and disabilities shall seek approval from the general assembly or the joint fiscal committee if the general assembly is not in session. The request for approval shall provide an analysis of the programs to be implemented and the impact on the nursing home industry in Vermont. Sec. 146a. TRANSPORTATION COSTS; REALLOCATION (a) The department of aging and disabilities shall manage 5310 funds appropriated through the agency of transportation to reallocate funds from department grantees who were unable to earn all of their grants to other grantees that have exceeded their grants. The department shall notify the general assembly in January 2005 of the amount of grantee expenditures in fiscal year 2004 the department was unable to pay because expenditures exceeded the $2,100,000.00 in available funds. Sec. 146b. 5310 FUNDING REPORT (a) The department of aging and disabilities working with the agency of transportation shall carry out a review of the 5310 transportation program and its fiscal condition. The report shall examine the adequacy of funding and level of grants by recipient; the levels of services provided; and the adequacy of monitoring in place. The report shall consider the impact of the anticipated 1115 waiver on these programs. Said report shall be submitted to the joint fiscal committee by November 1, 2004 for distribution and discussion at its November 2004 fiscal committee meeting. Sec. 146c. GRANT AUTHORIZED (a) The department of aging and disabilities is authorized to grant to the Vermont development credit union and to Vermont development venture up to 207 THURSDAY, MAY 20, 2004 $750,000.00 in aggregate, from the adaptive equipment revolving fund, established pursuant to 33 V.S.A. chapter 77. The grant shall require that: (1) the funds be used for the same purposes as those authorized by 33 V.S.A. chapter 77; (2) reports be provided to the department annually on the status and use of the funds; (3) lending criteria be used that are no more restrictive than the criteria used by the department in administering the adaptive equipment revolving fund; and (4) the total funds made available for loans to disabled persons to purchase adaptive equipment exceed the amounts of the grant. (b) After issuance of the grant, the funds granted shall no longer be considered part of the adaptive equipment revolving fund for purposes of 33 V.S.A. chapter 77. Sec. 147. 33 V.S.A. § 6321(f) is added to read: (f) Personal care attendants, as defined in program rules of the department of aging and disabilities, are exempt from 21 V.S.A. § 342 and shall not be construed as state employees except for purposes of 21 V.S.A. chapters 9 and 17. Sec. 148. Aging and disabilities - blind and visually impaired Grants 1,370,219 Source of Funds General fund 564,064 Special funds 145,000 Federal funds 661,155 Total 1,370,219 Sec. 149. Aging and disabilities - vocational rehabilitation Grants 6,217,958 Source of Funds General fund 1,599,195 Special funds 80,000 Federal funds 4,313,046 Interdepartmental transfer 225,717 Total 6,217,958 Sec. 150. Aging and disabilities - TBI home and community-based waiver Grants 2,564,186

JOURNAL OF THE HOUSE 208 Source of Funds General fund 1,014,905 Federal funds 1,549,281 Total 2,564,186 (a) The state shall allocate the appropriation for the traumatic brain injured waiver for fiscal year 2005 in the following manner: rehabilitation program, 51 slots; long-term program, 26 slots. The number of long-term program slots may be increased by no more than eight if matching funds are available to support the additional slots. Sec. 151. Office of economic opportunity Personal services 268,308 Operating expenses 78,670 Grants 4,513,795 Total 4,860,773 Source of Funds General fund 848,147 Special funds 80,012 Federal funds 3,681,541 Interdepartmental transfer 251,073 Total 4,860,773 (a) Of the above general fund appropriation, $485,000.00 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. Sec. 152. Office of economic opportunity - weatherization assistance Personal services 151,601 Operating expenses 96,510 Grants 7,021,327 Total 7,269,438 Source of Funds Special funds 5,991,517 Federal funds 1,277,921 Total 7,269,438 (a) Of the above special fund appropriation, $400,000.00 is for the replacement and repair of home heating equipment. Sec. 153. Corrections - administration 209 THURSDAY, MAY 20, 2004 Personal services 2,154,223 Operating expenses 322,087 Total 2,476,310 Source of Funds General fund 2,199,440 Federal funds 180,000 Interdepartmental transfer 96,870 Total 2,476,310 Sec. 154. Corrections - parole board Personal services 218,562 Operating expenses 65,555 Total 284,117 Source of Funds General fund 284,117 Sec. 155. Corrections - correctional education Personal services 3,237,375 Operating expenses 437,210 Total 3,674,585 Source of Funds General fund 3,113,998 Interdepartmental transfer 560,587 Total 3,674,585 Sec. 156. Corrections - correctional services Personal services 65,551,030 Operating expenses 27,534,372 Grants 1,644,500 Total 94,729,902 Source of Funds General fund 91,153,647 Transportation fund 1,144,483 Special funds 599,500 Tobacco funds 87,500 Federal funds 1,643,726 Interdepartmental transfer 101,046 Total 94,729,902 (a) Of the above general fund appropriation, $77,000.00 shall be used as a grant to Dismas House of Vermont, Inc.

JOURNAL OF THE HOUSE 210 Sec. 156a. DEPARTMENT OF CORRECTIONS POSITIONS; REDESIGNATION (a) Notwithstanding any provision of law to the contrary, the general assembly directs that the following permanent classified positions within the state be redesignated as exempt positions: (1) “Corrections Services Division Director” which shall, upon redesignation, be entitled: “Corrections Facility Executive” (1). (2) “Corrections Services Division Assistant Director” which shall, upon redesignation, be entitled: “Corrections Field Services Executive” (1). (3) “Corrections Restorative and Community Justice Executive” (1). (4) “Correctional Facility Superintendent” (9). (b) Notwithstanding any provision of law to the contrary, in fiscal year 2005, any department of corrections manager who becomes an exempt employee as a result of the redesignation of institution management or other positions and who has at least five years state classified service shall receive all the benefits available under 3 V.S.A. § 220, including those benefits that are limited to employees who have at least ten years classified state service. Sec. 156b. CORRECTIONS POSITIONS; CREATION AND EMPLOYMENT (a) Establishment. The general assembly authorizes and directs the establishment of the following positions within the department of corrections which shall be transferred and converted from existing vacant positions in the executive branch of state government: (1) One (1) new, permanent, full-time, exempt director of health services. (2) Four (4) new permanent, full-time, classified mental health services staff. (b) Staffing. Pursuant to the provisions of subsection (c) of this section, the general assembly directs the department of corrections to fill the following positions, all of which are either existing positions or are created by this section: (1) One (1) full-time, exempt director of health services. (2) Seven (7) full-time, classified mental health services staff. (c) Comprehensive mental health services plan. On or before January 15, 2005 and after consultation with the commissioner of health and the Vermont 211 THURSDAY, MAY 20, 2004 state employees’ association, the commissioner of corrections shall present to the joint legislative corrections oversight committee for its approval a plan for the delivery of comprehensive mental health services to inmates. The four new positions created by subdivision (a)(2) of this section shall not be filled until the joint legislative corrections oversight committee has approved the commissioner’s plan, and the general assembly has appropriated sufficient funding for the positions. Sec. 156c. 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 bedspace designated for the general population and shall not include bedspace used for segregation, isolation, or medical or mental health treatment, or high security bedspace 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 25 beds and that these 25 beds shall be proportionately distributed throughout the Vermont facilities. (e) On a quarterly basis, the commissioner shall submit a 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. 156d. DEPARTMENT OF CORRECTIONS: POLICY RESPONSE TO INVESTIGATIVE REPORT (a) Prior to adopting any policy in response to the 2004 “Investigative Report into the Deaths of Seven Vermont Inmates and Related Issues,” the commissioner of corrections shall provide copies of each proposed policy to the joint legislative corrections oversight committee for review and comment. If the committee provides no response within 45 days after receiving the proposed policy, the department may adopt the policy as initially proposed.

JOURNAL OF THE HOUSE 212 Sec. 156e. DEPARTMENT OF CORRECTIONS: INVESTIGATIONS (a) The secretary of human services is authorized to fill three positions to conduct independent internal affairs investigations within the department of corrections and within other departments of the agency as needed. These positions shall be transferred and converted from existing vacant positions in the executive branch of state government. (b) The secretary is authorized to transfer an amount not to exceed $200,000.00 from general fund appropriations made in Sec. 156 of this act to fund positions authorized in subsection (a) of this section. (c) When a case uncovers possible criminal activity it shall be referred to the attorney general criminal division. Sec. 157. Corrections - correctional facilities- recreation Personal services 507,620 Operating expenses 410,916 Total 918,536 Source of Funds Special funds 918,536 Sec. 158. Corrections - Vermont correctional industries Personal services 1,598,402 Operating expenses 1,731,740 Total 3,330,142 Source of Funds Internal service funds 3,330,142 Sec. 159. Children’s trust fund Grant 310,651 Source of Funds General fund 100,651 Special funds 70,000 Federal funds 140,000 Total 310,651 (a) At least 65 percent of the state appropriation for the children’s trust fund shall be awarded for community-based program activities for the broad range of child abuse and neglect prevention activities. Sec. 160. Commission on women Personal services 182,561 Operating expenses 54,216 213 THURSDAY, MAY 20, 2004 Total 236,777 Source of Funds General fund 231,777 Special funds 5,000 Total 236,777 Sec. 161. Retired senior volunteer program Grants 131,096 Source of Funds General fund 131,096 Sec. 162. Vermont veterans’ home - care and support services Personal services 11,886,014 Operating expenses 2,761,777 Total 14,647,791 Source of Funds General fund 969,037 Special funds 8,855,527 Federal funds 4,823,227 Total 14,647,791 (a) Notwithstanding 32 V.S.A. § 706(a)(1), the Vermont veterans’ home may transfer funds, with the approval of the secretary of administration, up to an amount equal to the general fund appropriation to the department of prevention, assistance, transition, and health access - Medicaid for purposes of facilitating a Medicaid rate adjustment. Sec. 163. Total human services 1,420,669,486 Source of Funds General fund 379,230,390 Transportation fund 1,624,062 Special funds 274,802,847 Tobacco fund 25,359,288 Federal funds 710,756,008 Permanent trust funds 2,300 Internal service funds 3,330,142 Interdepartmental transfer 25,564,449 Total 1,420,669,486 Sec. 164. Employment and training Personal services 19,992,849 Operating expenses 3,962,858 Grants 1,668,262

JOURNAL OF THE HOUSE 214 Total 25,623,969 Source of Funds General fund 1,086,261 Special funds 166,000 Federal funds 20,618,541 Interdepartmental transfer 3,753,167 Total 25,623,969 Sec. 164a. 21 V.S.A. chapter 14 is added to read: CHAPTER 14 . YOUTH IN AGRICULTURE, NATURAL RESOURCES, AND FOOD PRODUCTION § 1151. LEGISLATIVE FINDINGS AND PURPOSE (a) The general assembly finds that: (1) Agriculture, natural resources, and food production play a central role in the economy and culture of Vermont. (2) Farms and farm-based industries are experiencing an ever - increasing need for workers who are willing to work the hours involved in farming and who have the multiple skills necessary to handle successfully the multiple and varied responsibilities of farming. (3) Farms have always provided the environment for youth to acquire workplace skills such as responsibility, creativity, and initiative and occupational skills ranging from plant and animal science to economics and to grow therefore into sought-after workers by a wide variety of employers. (4) Programs such as the Farm Youth Corps have provided the infrastructure that is necessary to connect youth to careers in agriculture, natural resources, and food production. (5) Programs that have provided youth with the opportunity to work on farms have declined due to reductions in federal funding. (b) Therefore, it is the purpose of this chapter to create and support programs for youth that will engage them in agriculture, natural resources, and food production in order to: (1) Provide them an opportunity to engage in work that provides them with hands-on learning and allows them to develop a strong work ethic and vital workplace and occupational skills that will be valuable in any career they might pursue; (2) Encourage youth to pursue pathways to careers in agriculture, natural resources, and food production; 215 THURSDAY, MAY 20, 2004 (3) Provide farmers with young short-term workers and the opportunity to mentor future, long-term employees; and (4) Insure that youth are aware of the benefits of agriculture, natural resources, and food production to themselves and to Vermont. § 1152. YOUTH IN AGRICULTURE, NATURAL RESOURCES, AND FOOD PRODUCTION CONSORTIUM; CREATION (a) There is created a youth in agriculture, natural resources, and food production consortium of program providers in order that programs to build pathways to careers in agriculture, natural resources, and food production may be connected, developed, and supported in a coordinated manner. The consortium shall comprise employees of the department of employment and training assigned by the commissioner of employment and training; employees of the department of education assigned by the commissioner of education; employees of the agency of agriculture, food and markets appointed by the secretary of agriculture, food and markets; employees of the agency of natural resources appointed by the secretary of natural resources; representatives of the Extension Service of the University of Vermont selected by the service; and representatives from agriculture, food, and natural resources businesses appointed by the secretary of agriculture, food and markets. (b) The consortium shall be attached to the department of employment and training for administrative support. It shall elect its own chair and meet as required to fulfill its obligations under this chapter. § 1153. YOUTH IN AGRICULTURE, NATURAL RESOURCES, AND FOOD PRODUCTION CONSORTIUM; POWERS AND DUTIES (a) The consortium shall be charged with the oversight of the development and coordination of programs in agriculture, natural resources, and food production, and education to connect youths’ experiences in agriculture, natural resources, and food production to their in - school learning and develop pathways for pursuing further education related to agriculture or natural resources. It shall seek to coordinate and connect programs around common standards, coordinate resources, provide a clearinghouse for information and technical assistance, establish a strong business and education partnership, identify missing components of the system, and oversee funds made available for the express purpose of implementing these pathways. It shall endeavor to sustain and expand programming in agriculture, natural resources, and food production on a statewide basis in order to affect middle and secondary school students in Vermont. The consortium shall seek to ensure the effectiveness of all the programs in reaching large numbers of students, and in so far as possible, seek to provide programs in all regions of the state through a

JOURNAL OF THE HOUSE 216 statewide system with uniform availability, eligibility, and funding requirements to make such opportunities available to all students. (b) Among the programs to be reviewed and coordinated by the consortium are projects that involve agriculture and the environment; programs within the elementary and middle school system which provide hands-on learning, such as “Ag in the Classroom” sponsored by the agency of agriculture, food and markets, and “Forest, Fields, and Futures” sponsored by UVM Extension Service; and secondary school programs in agriculture and natural resources - related areas in education; “Smokeyhouse” and other technical education, agriculture, and natural resources programs offered by high schools and technical centers. In addition, it shall review and coordinate programs such as the Youth Conservation Corps and the Farm Youth Corps of the department of employment and training which has offered summer employment for students on farms, and other summer employment programs and alternative programs for in-school youth operated outside the public school funding system. (c) The consortium shall report by January 15, 2005 to the commissioner of employment and training, the secretary of agriculture, food and markets, the secretary of natural resources, the commissioner of education, and the house and senate committees on agriculture and on education on its progress, outcomes, and recommendations for expansion, development, and coordination of programs and pathways to careers in agriculture, natural resources, and food production in the state. Sec. 165. Total employment and training 25,623,969 Source of Funds General fund 1,086,261 Special funds 166,000 Federal funds 20,618,541 Interdepartmental transfer 3,753,167 Total 25,623,969 Sec. 166. Education - finance and administration Personal services 3,914,851 Operating expenses 1,254,486 Grants 10,600,000 Total 15,769,337 Source of Funds General fund 2,912,037 Special funds 20,088 Federal funds 1,717,098 217 THURSDAY, MAY 20, 2004 Interdepartmental transfer 11,120,114 Total 15,769,337 Sec. 167. Education - education programs Personal services 11,519,292 Operating expenses 2,217,297 Grants 113,569,716 Total 127,306,305 Source of Funds General fund 7,483,989 Transportation fund 520,672 Education fund 9,321,398 Special funds 1,639,731 Federal funds 106,983,908 Interdepartmental transfer 1,356,607 Total 127,306,305 (a) The appropriation in this section shall be authorized, notwithstanding 16 V.S.A. § 1564. (b) Of the above general fund appropriation, $80,000.00 shall be used as follows: $30,000.00 for grants for the wellness program and $50,000.00 to support the position created pursuant to H.272 of 2004. Sec. 168. [Deleted] Sec. 168a. SCHOOL DISTRICT CONSOLIDATION; TRANSITION AID; APPROPRIATION SUNSET (a) In its first year of operation, the commissioner shall pay to a joint contract, union, unified union, or interstate school district which began operation during or after school year 2003-2004 a facilitation grant of five percent of the base education payment amount in 16 V.S.A. § 4001(13) per average daily membership for that year or $150,000.00, whichever is less, from the education fund. The funds shall be in addition to funds received under 16 V.S.A. § 4028 and for districts beginning operation during or after school year 2004-2005 shall be paid in thirds in the same manner that other state education aid is paid under that section. (b) This section shall sunset on June 30, 2008. Sec. 169. Sec. 163(b) of No. 63 of the Acts of 2001 is amended to read: (b) There is appropriated in fiscal year 2002, and each year thereafter, from the education fund to the commissioner of education $450,000.00 for the purpose of awarding grants to technical centers for up to three years to support

JOURNAL OF THE HOUSE 218 innovative program development responding to emerging technologies and providing high-skill, high-wage employment. Sec. 170. Education - special education: formula grants Grants 105,256,030 Source of Funds Education fund 105,256,030 (a) Notwithstanding the provisions of 16 V.S.A. § 2969 or any other provisions of law, the reimbursements and grants pursuant to 16 V.S.A. § 2967 for fiscal year 2005 costs incurred by school districts shall be paid partially from the fiscal year 2005 appropriation and partially from the fiscal year 2006 appropriation. The fiscal year 2005 appropriation will cover the final reimbursements for fiscal year 2004, with the remainder available for reimbursements for fiscal year 2005 grants and reimbursements. Funds distributed to school districts for fiscal year 2005 expenses, to which the school districts were not entitled based on final reports for fiscal year 2005, shall not be considered as part of the total expenditures for fiscal year 2005 under the 60-percent state funding provision of 16 V.S.A. § 2967, as limited by Sec. 10 of No. 117 of the Acts of the 1999 Adj. Sess. (2000), as amended by Sec. 42 of No. 68 of the Acts of 2003. Such funds held by local school districts shall be treated as expenditures in fiscal year 2006. (b) Of the appropriation authorized in this section, and notwithstanding any other provision of law, an amount not to exceed $2,929,504.00 shall be used by the department of education in fiscal year 2005 as funding for 16 V.S.A. § 2967(b)(2)-(6). In distributing such funds, the commissioner shall not be limited by the restrictions contained within 16 V.S.A. § 2969(c) and (d). In addition to funding for 16 V.S.A. § 2967(b)(2)-(6), up to $150,000.00 may be used by the department of education for its participation in the higher education partnership plan. Sec. 171. EDUCATION - SPECIAL EDUCATION; SUCCESS BEYOND SIX (a) Education funds of the appropriation for special education - formula grants, or other funds eligible to be used for matching federal funds, may be used by each supervisory union to participate in the success beyond six program. The purpose of the program is to expand local partnerships to enhance the educational opportunities of students who are at risk of failure in school. The services are to be supplied through contracts with community - based Medicaid providers. The form and substance of the contracts shall be established as part of the overall agreement for the implementation of the program to be executed between the commissioner of 219 THURSDAY, MAY 20, 2004 education and the secretary of human services. Sec. 172. Education - state-placed students Grants 10,842,880 Source of Funds Education fund 10,842,880 Sec. 173. Education - adult education and literacy Grants 4,159,878 Source of Funds General fund 2,717,399 Education funds 499,999 Federal funds 983,619 Total 4,159,878 Sec. 174. 16 V.S.A. § 4011(f)(2) is amended to read: (2) adult education and literacy services, an amount equal to 20 percent of the base education payment for each client who is 16 to 20 years of age, inclusive, and who has gained at least one skill level pursuant to state or federal standards. The calculation of "client" shall be based on an average of the previous two years, according to information submitted to the commissioner on or before September 15 of the year of calculation. For each client 16 to 20 years of age, information submitted shall include the name, address, and dates of attendance at all Vermont public secondary schools attended and whether the client has gained a skill level. Sec. 174a. ADULT EDUCATION AND LITERACY; FUNDING (a) Notwithstanding 16 V.S.A. § 4011(f)(2), in fiscal year 2005, the adult education and literacy program shall receive funding pursuant to Sec. 173 of this act. (b) On or before September 30, 2005, the commissioner of education shall report to the general assembly on whether the adult education and literacy program has submitted the information required under 16 V.S.A. §4011(f)(2). If the information has not been submitted, subdivision (f)(2) shall be repealed on October 1, 2005. Sec. 175. ADULT EDUCATION AND LITERACY; COMMISSIONER OF EDUCATION; REPORT (a) On or before January 15, 2005, the commissioner of education shall report to the house and senate committees on appropriations and education on:

JOURNAL OF THE HOUSE 220 (1) techniques for using education funds allocated to a school district based on counting of an enrolled pupil, pursuant to 16 V.S.A. § 4001(1), to pay for all or part of funds which, pursuant to 16 V.S.A. § 4011(f)(2), are due to a department or agency providing adult education and literacy services for that pupil; and (2) strategies to encourage school districts and adult education and literacy providers to work together to keep students enrolled in school until graduation. Sec. 176. Education - adjusted education payment Grants 906,562,829 Source of Funds Education fund 906,562,829 Sec. 177. Education - essential early education grant Grants 4,273,279 Source of Funds Education fund 4,273,279 Sec. 178. Education - transportation Grants 13,190,788 Source of Funds Education fund 13,190,788 Sec. 179. Education - small school grants Grants 5,229,837 Source of Funds Education fund 5,229,837 Sec. 180. Education - capital debt service aid Grants 565,240 Source of Funds Education fund 565,240 Sec. 181. Education - tobacco litigation Personal services 156,690 Operating expenses 26,360 Grants 695,930 Total 878,980 Source of Funds Tobacco fund 878,980 221 THURSDAY, MAY 20, 2004 Sec. 182. Education - Act 117 cost containment Personal services 973,780 Operating expenses 89,237 Grants 65,000 Total 1,128,017 Source of Funds Interdepartmental transfer 1,128,017 (a) Notwithstanding any other provisions of law, expenditures made during fiscal year 2005 from this section shall be counted under 16 V.S.A. § 2967 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. 183. MEDICAID REIMBURSEMENT ADMINISTRATIVE SPECIAL FUND - DEPOSIT (a) In addition to deposits in the Medicaid reimbursement administrative special fund in accordance with 16 V.S.A. § 2959a(b), in fiscal year 2005, $1,128,017.00 of federal Medicaid receipts received for reimbursement of medically related services provided to students who are Medicaid eligible shall be deposited in the administrative special fund. Sec. 183a. SCHOOL-BASED MEDICAID (a) The department of education and the agency of human services shall analyze the funding risks to the school-based Medicaid program. Such analysis shall include the impact of and responses to potential problems in the transition to the premium-based Medicaid system. It shall also review the funding risks to the school-based programs funded through Medicaid due to the changing environment of federal Medicaid program oversight and Medicaid program modification or changes in or implementation of new rules. (b) The department and agency shall report to the joint fiscal committee no later than its November meeting with the results of its analysis. The joint fiscal committee shall notify the chairs of the house and senate committees on education and health and welfare so that they may attend the meeting and participate in any discussion. Sec. 184. FUND APPROPRIATION AND TRANSFER (a) There is appropriated in fiscal year 2005 from the general fund for transfer to the education fund the amount of $249,300,000.00. Sec. 185. State teachers’ retirement system Personal services 15,889,873 Operating expenses 806,073

JOURNAL OF THE HOUSE 222 Grants 20,446,282 Total 37,142,228 Source of Funds General fund 20,446,282 Pension trust funds 16,695,946 Total 37,142,228 (a) Notwithstanding 16 V.S.A. § 1944(g)(2), the amount of the annual contribution to the Vermont state teachers’ retirement system shall be $20,446,282.00 in fiscal year 2005. Sec. 186. TAX DEPARTMENT - REAPPRAISAL AND LISTING PAYMENTS (a) The amount of $2,266,000.00 in education funds is appropriated in fiscal year 2005 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. Sec. 187. Tax department - property tax assistance Grants 93,811,600 Source of Funds General fund 5,280,000 Transportation fund 3,520,000 Education fund 85,011,600 Total 93,811,600 Sec. 187a. Sec. 199 of No. 66 of the Acts of 2003 is amended to read: Sec. 199. Tax department property tax assistance Grants 107,969,706 109,469,706 Source of Funds General fund 7,084,690 7,084,690 Transportation fund 4,385,016 4,385,016 Education fund 96,500,000 98,000,000 Total 107,969,706 109,469,706 Sec. 188. 16 V.S.A. § 1561(d) is added to read: (d) In any year following a year in which fall semester full-time equivalent enrollment of students at a technical center increased by 20 percent or more over the previous fall semester, in addition to other aid, the technical center shall receive an extra supplemental assistance grant equal to two-thirds of the 35 percent of the base education payment for that year, multiplied by the actual full-time equivalent enrollment increase. The next year, if the increase in fall 223 THURSDAY, MAY 20, 2004 semester full-time equivalent enrollment is less than 20 percent, in addition to other aid, the technical center shall receive an extra supplemental assistance grant equal to one-third of the 35 percent of the base education payment for the year multiplied by the actual full-time equivalent increase of the previous fall semester. Sec. 189. Total general education and property tax assistance 1,577,683,228 Source of Funds General fund 288,139,707 Transportation fund 4,040,672 Education fund 1,143,462,361 Special funds 1,659,819 Tobacco fund 878,980 Federal funds 109,201,005 Pension trust funds 16,695,946 Interdepartmental transfer 13,604,738 Total 1,577,683,228 Sec. 190. University of Vermont Grants 37,937,512 Source of Funds General fund 37,937,512 (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, $355,470.00 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. 191. University of Vermont - Morgan horse farm Grants 5,000 Source of Funds General fund 5,000 Sec. 192. Vermont public television Grants 563,832 Source of Funds General fund 563,832 Sec. 193. Vermont state colleges Grants 21,867,742

JOURNAL OF THE HOUSE 224 Source of Funds General fund 21,967,742 (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, $100,000.00 shall be reserved for use as the state’s fiscal year 2005 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 2005 appropriation will be the fourth of five annual appropriations, through fiscal year 2006, totaling $500,000.00. 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, $400,860.00 shall be transferred to the Vermont manufacturing extension center for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both. (d) Of the above appropriation, $100,000.00 shall be a one-time grant to the Vermont teacher diversity scholarship program. Sec. 194. Vermont state colleges - nursing and dental hygiene Grants 620,661 Source of Funds General fund 620,661 Sec. 195. Vermont interactive television Grants 795,331 Source of Funds General fund 795,331 Sec. 196. Vermont student assistance corporation 225 THURSDAY, MAY 20, 2004 Grants 17,142,609 Source of Funds General fund 17,142,609 (a) Not less than 100 percent of grants shall be used for direct student aid. Sec. 197. New England higher education compact Operating expenses 88,840 Source of Funds General fund 88,840 Sec. 198. Total higher education and other 79,021,527 Source of Funds General fund 79,021,527 Sec. 199. Natural resources - agency of natural resources - administration Personal services 3,946,209 Operating expenses 1,874,447 Grants 310,700 Total 6,131,356 Source of Funds General fund 2,914,400 Special funds 966,964 Federal funds 423,900 Interdepartmental transfer 1,826,092 Total 6,131,356 Sec. 200. REVERSION TO GENERAL FUND (a) Notwithstanding any other provision of law, $15,000.00 in general funds appropriated in Sec. 52 of No. 80 of the Acts of the 2003 Adj. Sess. (2004), which amends Sec. 211 of No. 66 of the Acts of 2003 to the agency of natural resources, administration, shall revert to the general fund in fiscal year 2005. Sec. 201. Connecticut river watershed advisory commission Grants 38,000 Source of Funds General fund 22,500 Federal funds 15,500 Total 38,000 Sec. 202. Citizens’ advisory committee on Lake Champlain’s future Personal services 2,300

JOURNAL OF THE HOUSE 226 Operating expenses 5,200 Total 7,500 Source of Funds General fund 7,500 Sec. 203. Natural resources - state land local property tax assessment Operating expenses 1,229,000 Source of Funds General fund 756,377 Transportation fund 211,123 Interdepartmental transfer 261,500 Total 1,229,000 Sec. 204. Green up Operating expenses 6,036 Grants 8,550 Total 14,586 Source of Funds General fund 6,036 Special funds 8,550 Total 14,586 Sec. 205. Fish and wildlife - support and field services Personal services 9,379,330 Operating expenses 4,217,773 Grants 156,000 Total 13,753,103 Source of Funds General fund 1,250,101 Transportation fund 365,000 Fish and wildlife fund 12,138,002 Total 13,753,103 (a) Of the above appropriation, $5,000.00 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. (b) In fiscal year 2005, the department shall expend $200,000.00 in general funds provided for marketing to increase hunting and fishing license sales. It 227 THURSDAY, MAY 20, 2004 shall report to the house and senate committees on appropriations, the senate committee on natural resources and energy, and the house committee on fish, wildlife and water resources on or before January 15, 2005 the expenditures made and their results. (c) In its budget presentations and reports to the general assembly, the department of fish and wildlife shall provide an accounting of all expenditures for nongame programs and indicate therein the expenditures and budget items chargeable both to game and nongame programs and shall develop its budget accordingly. (d) To the maximum extent feasible, the general funds in this appropriation, excepting $200,000.00 allocated for marketing activity, shall be used to fund administrative support, overhead, nongame program activities, and programs that benefit both game and nongame species, while reserving traditional funding sources from hunters and anglers for activities that directly benefit from hunting and fishing programs. The agency shall track general fund and transportation fund expenditures from this appropriation for the first six months of fiscal year 2005 and report on these expenditures to the senate and house committees on appropriations by February 15, 2005. Sec. 205a. INSURANCE RESERVE FUND TRANSFER (a) Notwithstanding 32 V.S.A. § 135, $44,674.00 is hereby transferred from the insurance reserve fund, established under 32 V.S.A. § 134, to the department of fish and wildlife for rebuilding the Gordon House in Grand Isle. Sec. 206. Fish and wildlife - watershed improvement Operating expenses 661 Grants 50,000 Total 50,661 Source of Funds Fish and wildlife fund 50,661 Sec. 207. Fish and wildlife - wildlife management area projects Operating expenses 5,000 Source of Funds Fish and wildlife fund 5,000 Sec. 208. Fish and wildlife - conservation Personal services 126,610 Operating expenses 15,785 Grants 417,000 Total 559,395

JOURNAL OF THE HOUSE 228 Source of Funds Fish and wildlife fund 559,395 Sec. 209. Forests, parks and recreation - administration Personal services 748,075 Operating expenses 614,383 Grants 1,936,500 Total 3,298,958 Source of Funds General fund 1,136,958 Special funds 890,000 Federal funds 1,272,000 Total 3,298,958 Sec. 210. Forests, parks and recreation - forestry Personal services 4,458,479 Operating expenses 449,375 Grants 363,000 Total 5,270,854 Source of Funds General fund 3,217,274 Transportation fund 21,500 Special funds 375,000 Federal funds 1,438,080 Permanent trust funds 5,000 Interdepartmental transfer 214,000 Total 5,270,854 Sec. 211. Forests, parks and recreation - state parks Personal services 4,706,026 Operating expenses 1,973,200 Grants 5,000 Total 6,684,226 Source of Funds General fund 298,627 Special funds 6,385,599 Total 6,684,226 (a) The department of forests, parks and recreation shall establish a demonstration program in three to five state parks in which a person provides administrative and maintenance services at the park in exchange for a camp site for the season at no cost. 229 THURSDAY, MAY 20, 2004 Sec. 212. Forests, parks and recreation - lands administration Personal services 434,554 Operating expenses 229,500 Total 664,054 Source of Funds General fund 439,054 Special fund 195,000 Interdepartmental transfer 30,000 Total 664,054 Sec. 213. Forests, parks and recreation - youth conservation corps Personal services 391,775 Operating expenses 27,800 Grants 500,000 Total 919,575 Source of Funds Special funds 596,575 Federal funds 73,000 Interdepartmental transfer 250,000 Total 919,575 Sec. 214. Forests, parks and recreation - forest highway maintenance Personal services 247,978 Operating expenses 326,000 Total 573,978 Source of Funds General fund 90,965 Transportation fund 483,013 Total 573,978 Sec. 215. Environmental conservation - management and support services Personal services 2,751,124 Operating expenses 753,419 Grants 97,530 Total 3,602,073 Source of Funds General fund 1,166,778 Special funds 604,073 Federal funds 1,036,410 Interdepartmental transfer 794,812 Total 3,602,073

JOURNAL OF THE HOUSE 230 Sec. 216. Environmental conservation - air and waste management Personal services 5,579,941 Operating expenses 5,900,551 Grants 1,183,500 Total 12,663,992 Source of Funds General fund 592,246 Special funds 9,072,141 Federal funds 2,829,605 Interdepartmental transfer 170,000 Total 12,663,992 Sec. 217. Environmental conservation - office of water programs Personal services 11,507,410 Operating expenses 2,397,137 Grants 2,196,662 Total 16,101,209 Source of Funds General fund 5,828,516 Transportation fund 183,709 Special funds 3,185,235 Federal funds 6,321,692 Interdepartmental transfer 582,057 Total 16,101,209 (a) To facilitate the federally required erosion control program for sites with disturbed ground of one to five acres, the department shall provide information and education for affected persons. Sec. 218. REVERSION TO GENERAL FUND (a) Notwithstanding any other provision of law, $50,000.00 in general funds appropriated in Sec. 53 of No. 80 of the Acts of the 2003 Adj. Sess. (2004), which amends Sec. 231 of No. 66 of the Acts of 2003 to the agency of natural resources, department of environmental conservation, office of water programs, shall revert to the general fund in fiscal year 2005. Sec. 219. Environmental conservation - tax-loss - Connecticut river flood control Operating expenses 40,000 Source of Funds Special funds 40,000 231 THURSDAY, MAY 20, 2004 Sec. 220. Environmental board and district commissions - Act 250 Personal services 2,033,202 Operating expenses 368,967 Total 2,402,169 Source of Funds General fund 880,992 Special funds 1,521,177 Total 2,402,169 Sec. 221. Environmental board and district commissions - waste facilities panel Personal services 132,633 Operating expenses 12,367 Total 145,000 Source of Funds Special funds 120,000 Interdepartmental transfer 25,000 Total 145,000 Sec. 222. Water resources board Personal services 284,906 Operating expenses 39,609 Total 324,515 Source of Funds General fund 324,515 Sec. 223. Total natural resources 74,479,204 Source of Funds General fund 18,932,839 Transportation fund 1,264,345 Fish and wildlife fund 12,753,058 Special funds 23,960,314 Federal funds 13,410,187 Permanent trust funds 5,000 Interdepartmental transfer 4,153,461 Total 74,479,204 Sec. 224. Commerce and community development - agency of commerce and community development - administration Personal services 1,230,130 Operating expenses 458,576 Grants 186,200

JOURNAL OF THE HOUSE 232 Total 1,874,906 Source of Funds General fund 1,874,906 Sec. 225. 10 V.S.A. § 328 is amended to read: § 328. CREATION OF THE SUSTAINABLE JOBS FUND PROGRAM * * * (e) Annually, on or before May 30, the sustainable jobs fund program shall submit a grant application and proposed work plan to the secretary of commerce and community development who in consultation with the department of economic development shall review the application to assure that it complements the goals and priorities of the department. The secretary at any time may request the sustainable jobs fund program to submit information that the secretary determines necessary or desirable to consider the annual application, assess the effectiveness of the grant, or carry out the purposes of this chapter. (f) The Vermont sustainable jobs fund program shall work collaboratively with the agency of agriculture, food and markets to assist the Vermont slaughterhouse industry in supporting its efforts at productivity and sustainability. Sec. 226. Housing and community affairs Personal services 2,217,796 Operating expenses 326,342 Grants 3,965,014 Total 6,509,152 Source of Funds General fund 1,531,188 Special funds 3,468,740 Federal funds 1,509,224 Total 6,509,152 Sec. 227. BROWNFIELDS; APPROPRIATION (a) In fiscal year 2004, there is appropriated $65,000.00 from the municipal regional planning fund to the department of housing and community affairs to be distributed to regional planning commissions that are, or may become, responsible for administration of federal grants from the environmental protection agency for brownfields analysis and remediation to cover expenses associated with such administrative costs. 233 THURSDAY, MAY 20, 2004 Sec. 228. Historic sites operations Personal services 563,114 Operating expenses 1,344,765 Total 1,907,879 Source of Funds General fund 409,352 Special funds 490,000 Federal funds 453,000 Interdepartmental transfer 555,527 Total 1,907,879 Sec. 229. CONSOLIDATION OF ALL STATE-FUNDED VERMONT HISTORIC PRESERVATION ACTIVITIES (a) There is created a committee on the consolidation of state - funded historic preservation activities. The committee shall consist of the following: (1) the commissioner of finance and management; (2) the commissioner of housing and community affairs; (3) the state historic preservation officer; (4) the executive director of the Vermont historical society; (5) one member of the Vermont historical society board; (6) one member of the Vermont advisory council on historic preservation; (7) a representative of the preservation trust of Vermont; and (8) two members of the general assembly, one from the house appointed by the speaker and one from the senate appointed by the committee on committees. (b) The committee shall review the current historic preservation goals of the state, including a comprehensive summary of the funding, organization structure, and programmatic activities of the various organizations that receive state funding for historic preservation activities. (c) The committee shall report by November 15, 2004 to the general assembly on its findings and shall make specific recommendations on: (1) the unification of these activities in one state agency; (2) a single funding request for the unified agency in the fiscal year 2006 budget. (d) Legislative members shall be entitled to compensation under 2 V.S.A.

JOURNAL OF THE HOUSE 234 § 406. The executive and legislative staff shall provide support to the committee as appropriate to accomplish its tasks. Primary administrative support shall be provided by the legislative council. (e) The administration shall include the recommendation of the committee in the fiscal year 2006 budget submission made to the general assembly. Sec. 230. Community development block grants Grants 8,185,740 Source of Funds Federal funds 8,185,740 (a) Community development block grants will carry forward until expended. Sec. 231. Downtown transportation and capital improvement fund Grants 800,000 Source of Funds Special funds 800,000 Sec. 232. Economic development Personal services 1,648,204 Operating expenses 534,099 Grants 1,602,774 Total 3,785,077 Source of Funds General fund 3,144,403 Special funds 472,000 Federal funds 168,674 Total 3,785,077 (a) Prior to the secretary’s approval of any grant for carrying out the duties of the world trade office, the secretary shall submit the grant to the house and senate committees on appropriations, the house committee on commerce, and the senate committee on economic development, housing and general affairs for their approval. If the general assembly is not in session, the grant must be submitted to the joint fiscal committee for its approval. (b) Of the above general fund appropriation, $150,000.00 shall be used to provide $12,500.00 grants to each of the regional development corporations. (c) Of the above general fund appropriation, $200,000.00 shall be used to support recruitment, retention, and entrepreneurial development activities. 235 THURSDAY, MAY 20, 2004 Sec. 232a. INTERNATIONAL CENTER FOR CAPTIVE INSURANCE EDUCATION; APPROPRIATION (a) In fiscal year 2004 there is appropriated $50,000.00 from the captive insurance regulatory and supervision fund to the department of economic development for a grant to support the international center for captive insurance education. Sec. 233. Vermont training program Personal services 107,531 Operating expenses 26,599 Grants 1,324,570 Total 1,458,700 Source of Funds General fund 1,407,700 Special funds 51,000 Total 1,458,700 Sec. 233a. 10 V.S.A. § 531(c)(1) is amended to read: (1) employ new persons at a wage which, at the completion of the training program, is two times the prevailing state or federal minimum wage, whichever is greater, reduced by the value of any existing health benefit package up to a limit of 25 30 percent of the gross program wage, or for existing employees, to increase the wage to two times the prevailing state and federal minimum wage, whichever is greater, reduced by the value of any existing health benefit package up to a limit of 15 20 percent of the gross program wage, upon completion of training; provided, however, that in areas defined by the secretary of commerce and community development in which the secretary finds that the rate of unemployment is 50 percent greater than the average for the state, the wage rate under this subsection may be set by the secretary at a rate no less than one and one-half times the federal or state minimum wage, whichever is greater; Sec. 234. Tourism and marketing Personal services 2,372,840 Operating expenses 1,816,797 Grants 789,000 Total 4,978,637 Source of Funds General fund 4,678,637 Interdepartmental transfer 300,000 Total 4,978,637

JOURNAL OF THE HOUSE 236 (a) Of the above general fund appropriation, $65,000.00 shall be used to support the Vermont wood products showcase initiative for promotion of Vermont wood products. These funds will provide a one-for-one match for the first tier action items identified in the wood product council’s action plan for fiscal year 2005. (b) Funds designated for regional marketing grants shall be expended to market activities, including advertising, direct mail campaigns, familiarization trips for writers and travel trade professionals, public relations, regional websites, tourist fulfillment, trade shows, niche guides, event marketing sponsorships, and administrative costs that can be documented in the year-end grant report. These activities shall be done in cooperation with the department of tourism and marketing’s plans which are designed to improve communications with the travel and tourism industry. Sec. 234a. CONSOLIDATION AND CONTRACTING OF TOURISM AND MARKETING FUNCTIONS (a) The general assembly recognizes that: (1) Tourism is a vitally important industry to the state of Vermont; (2) Marketing of Vermont goods and services is an integral function that supports the tourism sector of the state and benefits many other Vermont businesses, including agriculture and manufacturing; (3) The promotion of Vermont's travel, recreation, and cultural attractions and the promotion of Vermont goods and services require coordination with many agencies of state government, chambers of commerce and travel associations, and the private sector; (4) The state funds available to support the marketing and promotion efforts of the state, while limited, must be managed to provide the maximum return to Vermont based travel, recreational, agricultural, and manufacturing businesses; (b) There is created the committee on consolidation and contracting of tourism and marketing functions. (1) The committee shall consist of 12 members as follows: (A) The secretary of the agency of commerce and community development, who shall serve as chair of the committee. (B) The secretary of the agency of administration, or designee. (C) Two members of the general assembly: 237 THURSDAY, MAY 20, 2004 (i) One member from the senate appointed by the committee on committees; (ii) One member of the house appointed by the speaker. (D) Eight members appointed by the governor who are not state government employees as follows: (i) One member representing small-scale tourism and general business interests; (ii) One member representing large-scale tourism and general business interests; (iii) One member representing traditional outdoor recreational interests such as hunting, fishing, and camping activities; (iv) One member representing agricultural interests; (v) One member representing regional marketing organizations; (vi) One member representing Vermont products manufacturing interests; (vii) One member with recognized professional experience and expertise in marketing and advertising; and (viii) One member representing Vermont business organizations. (2) The charge of the committee is as follows: (A) Inventory, review, and describe all the functions and activities of the current department of tourism and marketing. This review shall include the “as-passed” fiscal year 2005 budget allocated to each function, including the source of funds, the number of state employee positions, and operating expenses allocated to each function. (B) Inventory, review, and describe all marketing and promotional activities performed by any another agency or department of state government. This review shall include the “as-passed” fiscal year 2005 budget allocated to each function including the source of funds, the number of state employee positions, and operating expenses allocated to each function. (C) Assess the functions and activities identified above and make recommendations as to: (i) The continuation of specific functions and activities; (ii) The benefits of consolidation of specific functions and activities;

JOURNAL OF THE HOUSE 238 (iii) The redirection of resources among functions and activities; (iv) The suitability of contracting with the private sector to perform functions and activities; (v) The most effective administrative and oversight structure for managing the state investment of funds for marketing and promotional purposes. (D) Recommend a plan to restructure the tourism marketing and promotional activities that could be implemented in fiscal year 2006. The plan shall identify the state employee positions that would be affected by the restructuring. The plan shall include any recommendations for amending state statutes to implement the restructuring. (E) Recommend key priorities to be included in a “request for proposal” for the activities recommended for contracting. (F) Use the following principles in making the assessments and recommendations in subdivision (2)(C) of this subsection: (i) Maximizing the value and utilization of the Vermont brand; (ii) Maximizing the return on state expenditures for marketing and promotion; (iii) Leveraging private sector funds and expertise to support and complement these activities; (iv) Undertaking marketing efforts which are coherent, coordinated, effective, and, to the degree possible, measurable by relevant criteria; (v) Adopting any additional guidelines or principles in making its assessments and recommendations. (G) Submit a report on the its findings and recommendations to the general assembly and the governor by November 15, 2004. (c) Staff assistance shall be provided by the department of tourism and marketing, the agency of commerce and community development, the agency of administration, the legislative council, and the joint fiscal office. Legislative members shall be entitled to compensation under 32 V.S.A. § 1052. Sec. 235. Vermont life Personal services 690,000 Operating expenses 135,000 Total 825,000 239 THURSDAY, MAY 20, 2004 Source of Funds Enterprise funds 825,000 Sec. 236. Vermont council on the arts Grants 519,618 Source of Funds General fund 519,618 (a) Included in the above appropriation is $25,000.00 to be used as matching funds by the Vermont museum and gallery alliance for a statewide restoration project of historical painted theatre curtains. Sec. 237. Vermont symphony orchestra Grants 101,960 Source of Funds General fund 101,960 Sec. 238. Vermont historical society Grants 527,660 Source of Funds General fund 527,660 Sec. 239. Vermont housing and conservation board Grants 23,898,112 Source of Funds Special funds 13,613,246 Federal funds 10,284,866 Total 23,898,112 (a) Of the above special fund appropriation, $400,000.00 shall be allocated for a grant to the Vermont center for independent living for the home access project to be used in a manner consistent with Vermont housing and conservation fund guidelines. Sec. 240. Vermont humanities council Grants 150,599 Source of Funds General fund 150,599 (a) Of the above appropriation, $20,000.00 shall be used to support the connections program. Sec. 240a. 10 V.S.A. § 637 is amended to read: § 637. SOVEREIGN IMMUNITY, CREDIT OF STATE NOT PLEDGED

JOURNAL OF THE HOUSE 240 The agency shall have the benefit of sovereign immunity to the same extent as the state of Vermont. Notwithstanding the foregoing, Obligations obligations issued under the provisions of this chapter shall not be deemed to constitute a debt or liability or obligation of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any political subdivision but shall be payable solely from the revenues or assets of the agency. Each obligation issued under this chapter shall contain on the face thereof a statement to the effect that the agency shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligations. Sec. 241. Total commerce and community development 55,798,040 Source of Funds General fund 14,621,023 Special funds 18,894,986 Federal funds 20,601,504 Enterprise funds 825,000 Interdepartmental transfer 855,527 Total 55,798,040 Sec. 242. 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. 243. Transportation - finance and administration Personal services 8,285,296 Operating expenses 1,796,010 Total 10,081,306 Source of Funds Transportation fund 9,606,306 Federal funds 475,000 Total 10,081,306 (a) The agency of transportation shall ensure that when Route 108 is closed 241 THURSDAY, MAY 20, 2004 between Stowe and Jeffersonville, physical barriers shall be placed on the roadway to prevent traffic from using the road. If the barriers are not in place, notwithstanding any other law to the contrary, no citations shall be issued for road use. Sec. 243a. ROUTE 7 WATER LINE NEGOTIATIONS (a) The secretary of transportation shall submit a status report on discussions with Pownal Fire District #5 concerning allocation of costs and financial arrangements regarding movement of a water line. This report shall be filed with the joint fiscal office prior to the July 2004 meeting of the joint fiscal committee. Sec. 244. Transportation - aviation Personal services 1,326,437 Operating expenses 10,600,838 Grants 130,000 Total 12,057,275 Source of Funds Transportation fund 3,024,775 Federal funds 9,032,500 Total 12,057,275 Sec. 245. Transportation - buildings Personal services 202,000 Operating expenses 1,102,000 Total 1,304,000 Source of Funds Transportation fund 1,304,000 Sec. 246. Transportation - program development Personal services 35,250,853 Operating expenses 102,737,697 Grants 29,589,958 Total 167,578,508 Source of Funds Transportation fund 33,473,081 Local match 2,607,821 Federal funds 131,497,606 Total 167,578,508 Sec. 247. Transportation - interstate rest areas Personal services 180,000

JOURNAL OF THE HOUSE 242 Operating expenses 5,074,282 Total 5,254,282 Source of Funds Federal funds 5,254,282 Sec. 248. Transportation - maintenance state system Personal services 29,175,042 Operating expenses 23,681,617 Grants 582,300 Total 53,438,959 Source of Funds Transportation fund 52,678,459 Federal funds 760,500 Total 53,438,959 Sec. 249. Transportation - policy and planning Personal services 3,260,021 Operating expenses 429,783 Grants 4,130,769 Total 7,820,573 Source of Funds Transportation fund 1,742,221 Federal funds 6,078,352 Total 7,820,573 Sec. 250. Transportation - rail Personal services 3,744,449 Operating expenses 4,105,787 Grants 2,800,000 Total 10,650,236 Source of Funds Transportation fund 6,413,236 Federal funds 4,237,000 Total 10,650,236 Sec. 251. Transportation - public transit Personal services 471,074 Operating expenses 742,112 Grants 12,509,328 Total 13,722,514 Source of Funds Transportation fund 6,379,376 243 THURSDAY, MAY 20, 2004 Local match 67,500 Federal funds 7,275,638 Total 13,722,514 Sec. 252. Transportation - central garage Personal services 2,994,408 Operating expenses 7,995,537 Total 10,989,945 Source of Funds Internal service funds 10,989,945 Sec. 253. Department of motor vehicles Personal services 13,710,579 Operating expenses 6,265,306 Grants 100,000 Total 20,075,885 Source of Funds Transportation fund 19,112,258 Federal funds 963,627 Total 20,075,885 (a) Of the above transportation fund appropriation, $127,483.00 shall be transferred to the department of education, education programs, to support the driver education program. Sec. 254. Transportation - town highway structures Grants 3,494,500 Source of Funds Transportation fund 3,494,500 (a) Notwithstanding any other provision of law, in fiscal year 2004, the sum of $3,500,000.00 shall revert to the transportation fund from the town highway structures account, account # 8100000300. (b) Notwithstanding any other provision of law, in fiscal year 2005, the sum of $492,122.00 shall revert to the transportation fund from the town highway structures account, account # 8100000300. Sec. 255. Transportation – town highway emergency fund Grants 1 Source of Funds Transportation fund 1 (a) Notwithstanding any other provision of law, in fiscal year 2005, the

JOURNAL OF THE HOUSE 244 sum of $125,000.00 shall revert to the transportation fund from the town highway emergency fund account, account #8100001400. Sec. 256. Transportation - town highway Vermont local roads Grants 677,333 Source of Funds Transportation fund 435,600 Federal funds 241,733 Total 677,333 Sec. 257. Transportation - town highway class 2 roadway Grants 4,248,750 Source of Funds Transportation fund 4,248,750 (a) Notwithstanding any other provision of law, in fiscal year 2004, the sum of $1,500,000.00 shall revert to the transportation fund from the town highway class 2 roadway account, account # 8100002600. (b) Notwithstanding any other provision of law, in fiscal year 2005, the sum of $280,473.00 shall revert to the transportation fund from the town highway class 2 roadway account, account # 8100002600. Sec. 258. Transportation - town highway bridges Personal services 3,610,000 Operating expenses 16,903,263 Grants 418,000 Total 20,931,263 Source of Funds Transportation fund 7,129,406 Local match 1,384,030 Federal funds 12,417,827 Total 20,931,263 Sec. 259. Transportation - town highway aid program Grants 24,982,744 Source of Funds Transportation fund 24,982,744 (a) The above appropriation is authorized, notwithstanding 19 V.S.A. § 306(a). Sec. 260. Transportation - town highway class 1 supplemental grants Grants 128,750 245 THURSDAY, MAY 20, 2004 Source of Funds Transportation fund 128,750 Sec. 261. Transportation - public assistance grant program Grants 200,001 Source of Funds Special fund 1 Federal funds 200,000 Total 200,001 Sec. 262. Transportation board Personal services 68,138 Operating expenses 10,262 Total 78,400 Source of Funds Transportation fund 78,400 Sec. 263. Total transportation 367,715,225 Source of Funds Transportation fund 174,231,863 Special funds 1 Local match 4,059,351 Federal funds 178,434,065 Internal service funds 10,989,945 Total 367,715,225 Sec. 264. Debt service 65,481,831 Source of Funds General fund 60,579,557 Transportation fund 2,514,264 Special funds 2,388,010 Total 65,481,831 Sec. 265. Total debt service 65,481,831 Source of Funds General fund 60,579,557 Transportation fund 2,514,264 Special funds 2,388,010 Total 65,481,831 Sec. 266. MISCELLANEOUS ACTS OF THE 2004 SESSION

JOURNAL OF THE HOUSE 246 (a) Amounts are hereby appropriated in accordance with the provisions of all house and senate bills which may be enacted by the 2004 session of the general assembly. Sec. 267. RELATIONSHIP TO CERTAIN EXISTING LAWS (a) This act shall not be construed in any way to negate or impair the full force and effect of existing laws relating to taxation and the disposition of funds raised thereby, the appraisal of electric plants, lawful rebates from the state treasury, laws relating to unorganized towns and gores, laws relating to trust funds for which the state is trustee or beneficiary, laws relating to care and regulation of state institutions and property, and laws relating to the state agricultural land grant funds. Sec. 268. 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. 269. FEDERAL FUNDS (a) In fiscal year 2005, 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 2005, federal funds available to the state of Vermont and designated as federal in this and other acts of the 2004 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 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. Sec. 270. DEPARTMENTAL RECEIPTS (a) All receipts shall be credited to the general fund except as otherwise 247 THURSDAY, MAY 20, 2004 provided and except the following receipts, for which this subsection shall constitute authority to credit to special funds: Connecticut River flood control Public service department - sale of power Tax department - unorganized towns and gores (b) Notwithstanding any other provision of law, departmental indirect cost recovery (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. 271. 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 year 2005, except for new positions authorized by the 2004 session. Limited service positions approved pursuant to 32 V.S.A. § 5 shall not be subject to this restriction. Sec. 272. 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) The sum of $288,000.00 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 $288,000.00 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 $12,604,000.00 is appropriated from the housing and conservation trust fund to the housing and conservation trust board. Notwithstanding 10 V.S.A. § 312, amounts above $12,604,000.00 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 $3,769,920.00 is appropriated from the municipal and regional planning fund. Notwithstanding 24 V.S.A. § 4306(a), amounts above $3,769,920.00 from the property transfer tax that are deposited into the municipal and regional planning fund shall be transferred into the general fund. The $3,769,920.00 shall be allocated as follows:

JOURNAL OF THE HOUSE 248 (A) $2,638,944.00 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b); (B) $753,984.00 for disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b); (C) $376,992.00 to the geographic information system. Sec. 273. FISCAL YEARS 2006 AND 2007 PROPERTY TRANSFER TAX ALLOCATIONS (a) In fiscal years 2006 and 2007, the appropriations made to the department of taxes, the housing and conservation board, and the municipal and regional planning fund for distribution to regional planning commissions, municipalities, and the geographic information system shall be increased four and one-half percent (4.5%) above the level appropriated to each of these entities in the previous fiscal year. Notwithstanding 32 V.S.A. § 9610(c), 10 V.S.A. § 312, and 24 V.S.A. § 4306(a), property transfer tax revenue above these amounts shall be transferred to the general fund. Sec. 274. [Deleted] Sec. 275. [Deleted] Sec. 276. [Deleted] Sec. 277. SPECIAL EDUCATION; STATE FUNDING (a) Notwithstanding Sec. 10(c) of No. 117 of the Acts of the 1999 Adj. Sess. (2000), state funding pursuant to 16 V.S.A. § 2967(b) shall not exceed 60 percent for any fiscal year. If, in any fiscal year, the actual percentage increase in the statewide total special education expenditures is less than the target increase, pursuant to Sec. 10(a) of No. 117 of the Acts of the 1999 Adj. Sess. (2000), as amended by Sec. 42 of No. 68 of the Acts of 2003, and the actual increase in the total K-12 service plans is more than the target increase, the actual percentage increase will be used to determine the amount appropriated for the ensuing fiscal year, pursuant to Sec. 10(b) of No. 117 of the Acts of the 1999 Adj. Sess. (2000). Sec. 278. Sec. 10(b) of No. 117 of the Acts of the 1999 Adj. Sess. (2000) is amended to read: (b) Notwithstanding the provisions of chapter 101 of Title 16, in fiscal years 2002 through 2004, the amount appropriated by the general assembly to provide state aid for special education shall be no more than the amount that would be appropriated if statewide total special education expenditures grew by the target amounts. 249 THURSDAY, MAY 20, 2004 Sec. 279. TRANSPORTATION FUND TRANSFER (a) The amount of $800,000.00 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. 280. GENERAL FUND TRANSFER (a) With respect to the transfer of $3,100,000.00 of general funds to the transportation fund in Sec. 81a of No. 80 of the Acts of 2004, and to the extent and in the amount that general funds are transferred to the transportation fund pursuant to Sec. 88 of No. 80 of the Acts of 2004, such amounts of fiscal year 2005 transportation fund appropriations shall not be included in the calculation of the transportation fund budget stabilization reserve requirement for fiscal year 2006 under 32 V.S.A. § 308a(b), nor in the calculation of allowable transportation fund appropriations for fiscal year 2006 under 19 V.S.A. § 11a, nor in the calculation of the transfer requirements for fiscal year 2006 of the transportation equipment replacement account of the central garage fund under 19 V.S.A. § 13(c). Sec. 281. 10 V.S.A. § 280a(a)(11) is added to read: (11) a program that would award grants made to eligible and qualified recipients as directed by the agency of agriculture, food and markets or the agency of natural resources for the purpose of funding stream stability and conservation reserve enhancement environmental initiatives approved by the agencies, provided that the maximum amount of grants awarded by the authority pursuant to the program shall not exceed $1,340,238.00 in the aggregate. Sec. 282. SPECIAL DEBT REDUCTION ADJUSTMENT (a) The state treasurer, in consultation with the secretary of administration, shall negotiate an agreement for forgiveness of up to $1,340,238.00 of the principal balance of the loan between the state of Vermont and the Vermont economic development authority issued May 15, 2003. The negotiated agreement shall require the Vermont economic development authority to make grants in a like amount to eligible and qualified recipients as directed by the agency of agriculture, food and markets or by the agency of natural resources for the purpose of funding stream stability and conservation reserve enhancement environmental initiatives approved by the agencies. The agreement will also specify that the authority continue to make all payments currently scheduled under the loan to the state until the remaining principal and interest are paid in full.

JOURNAL OF THE HOUSE 250 Sec. 283. FISCAL YEAR 2004 AND 2005 TOBACCO SETTLEMENT FUND BALANCE (a) Notwithstanding Sec. 146(b) of No. 66 of the Acts of 2003, in fiscal year 2004, any unexpended and unencumbered balance in the tobacco litigation settlement fund not to exceed $600,000.00 shall at the close of the fiscal year be transferred to the Vermont health access trust fund, and any remaining balance shall remain in the tobacco litigation settlement fund. (b) In fiscal year 2005, any unexpended and unencumbered balance in the tobacco litigation settlement fund not to exceed $636,000.00 shall at the close of the fiscal year remain in the tobacco litigation settlement fund. Sec. 284. STATE EMPLOYEE RETIREMENT CHARGE ADJUSTMENT (a) The fiscal year 2005 charge to departments for the state employee retirement system shall not exceed 9.9 percent. Sec. 285. Sec. 323(a)(1) and (2) of No. 66 of the Acts of 2003 as amended by Sec. 70 of No. 80 of the Acts of 2004 are further amended to read: (1) The sum of $523,190.00 from the general fund for fiscal year 2004 and the sum of $5,919,339.00 $5,743,862.00 from the general fund for fiscal year 2005. (2) The sum of $2,704,527.00 $1,458,637.00 from the transportation fund for fiscal year 2005. Sec. 286. Sec. 47 of No. 68 of the Acts of 2003 is amended to read: Sec. 47. TEACHER NEGOTIATIONS; SUPERVISORY UNION LEVEL; APPROPRIATION (a) The board of a supervisory union in which the member boards are not jointly negotiating teacher contracts or in which the boards are jointly negotiating separate contracts and are seeking to negotiate a single supervisory union contract may apply to the commissioner of education for a grant to work with its member districts to enter into an agreement to do so. Two or more supervisory unions or supervisory districts may apply to the commissioner for a grant to work together to create a regional bargaining initiative. (b) The commissioner is authorized to award one grant of up to $5,000.00 to each a supervisory union board which applies for a grant under this section to work with its member districts and grants of up to $5,000.00 to each supervisory union or supervisory district seeking to work toward a regional bargaining initiative. * * * 251 THURSDAY, MAY 20, 2004 Sec. 287. SMALL BUSINESS INSURANCE PROPOSAL (a) The department of banking, insurance, securities, and health care administration shall study and propose the development of an insurance plan for small businesses in Vermont. Working with interested stakeholders including small business owners, employees of small business owners, small business associations such as the chamber of commerce, the health care ombudsman, the commissioner of health, the Vermont medical society, the Vermont association of hospitals and health systems, Vermont citizens campaign for health, Vermont businesses for social responsibility, and insurers, the department shall design an affordable health benefit package proposal to be funded through premiums and other cost-sharing means, such as deductibles and co-payments. Premium costs should be shared by employers and their employees. (b) The study and proposal shall consider the following in terms of their costs: (1) how to guarantee solvency; (2) who would establish eligibility to join the small business plan; (3) who would govern the plan; (4) how the plan would be internally rated; (5) any effects of the plan on the insurance market; (6) how health benefit plans would be determined; (7) effects on the number of uninsured Vermonters; and (8) the establishment of a small business self-insurance pool. (c) The department shall issue a report of its findings and recommendations to the general assembly no later than January 15, 2005. Sec. 287a. REPEAL; FISCAL YEAR 2004 WATERFALL (a) Sec. 288. Sec. 293 of No. 66 of the Acts of 2003, as amended by Sec. 88 of No. 80 of the Acts of 2004 is hereby repealed. Sec. 288. FISCAL YEAR 2004 DESIGNATED BALANCE (WATERFALL) (a) At the close of fiscal year 2004, the fiscal year 2004 unreserved and undesignated general fund balance on a budgetary basis, as determined by the commissioner of finance and management on July 31, 2004, shall to the extent funds are available: (1) First, be transferred to the general fund budget stabilization reserve to the extent necessary to attain its statutory maximum;

JOURNAL OF THE HOUSE 252 (2) Second, $12,410,000.00 shall be transferred to the general fund surplus reserve to be available for fiscal year 2005 expenditures; (3) Third, $1,365,000.00 shall be transferred to the transportation fund; (4) Fourth, $140,000.00 shall be appropriated for the following reports and studies: (A) $25,000.00 to the agency of commerce and community development for the marketing consolidation and contracting report required in Sec. 234a of this act; (B) $50,000.00 to the agency of human services for the developmental and mental health provider system study required in Sec. 141 of this act; (C) $25,000.00 to the joint fiscal committee for the sustainable health care study required in Sec. 290 of this act; (D) $30,000.00 to the department of aging and disabilities, $15,000.00 for the transportation funding review required in Sec. 146b of this act, and $15,000.00 for the costs of the advisory board established in Sec. 128j of this act. (5) Fifth, $2,685,000.00 shall be appropriated for the following: (A) $210,000.00 to the attorney general for the costs of the negotiated settlement of the case of American Booksellers v. Dean; (B) $50,000.00 to the treasurer’s office for a grant to the firefighters survivors benefit expendable trust fund; (C) $50,000.00 to the military department for armory maintenance; (D) $75,000.00 to the department of fish and wildlife, of which $50,000.00 shall provide funding for activities in accordance with Sec. 217d of Act 66 of 2003; and $25,000.00 is to develop a public education program designed to alert the public to the threat that lead fishing tackle can pose to wildlife. The program shall be administered by the education coordinator within the department of fish and wildlife for a lead sinker program consistent with H.517 of 2004; (E) $25,000.00 to the department of forests, parks and recreation for promotion activities for Vermont’s forests and parks facilities; (F) $100,000.00 to the university of Vermont for a business incubator program; 253 THURSDAY, MAY 20, 2004 (G) $450,000.00 to the department of buildings and general services as follows: $50,000.00 for the municipal and nonprofit assistance program established in Sec. 18a of this act and $400,000.00 for the community assistance program established in Sec. 19 of this act; (H) $500,000.00 to the department of buildings and general services for construction costs of the state crime lab; (I) $15,000.00 to the department of buildings and general services for a grant to the Clarendon F.I.R.S.T. organization as soon as administratively possible to support environmental testing expenses; (J) $25,000.00 to the office of state’s attorneys for support of a temporary deputy state’s attorney in Addison county; (K) $20,000.00 to Vermont court diversion for a supplemental grant for the Windsor county court diversion program; (L) $250,000.00 to the agency of human services to support agency reorganization costs; (M) $25,000.00 to the agency of human services to be used to fund transportation aid shortfalls in district area agencies on aging; (N) $200,000.00 to the department of social and rehabilitation services to be deposited into the building bright spaces for bright futures fund. Of this appropriation, $50,000.00 shall be used to assist non-accredited child care providers to obtain accreditations ; (O) $75,000.00 to the secretary of administration for an economic development grant to the town of Hardwick due to negative impacts of a mudslide: (P) $30,000.00 to the Vermont economic progress council for planning activities; (Q) $200,000.00 to the department of tourism and marketing for supplemental grants to regional marketing organizations to be distributed in the same manner as formula grants; (R) $50,000.00 to the department of tourism and marketing for additional marketing activities; (S) $140,000.00 to the department of economic development for recruitment and retention activities of the department; (T) $50,000.00 to the department of economic development for a grant to the Springfield regional development commission to be used to match federal funds for a technology incubator project;

JOURNAL OF THE HOUSE 254 (U) $45,000.00 to the secretary of administration for a grant to the Vermont council on rural development for a planning council initiative; (V) $50,000.00 to the agency of commerce and community development for a supplemental grant to the Vermont world trade office to be used to leverage federal funding; (W) $30,000.00 to the agency of agriculture, food and markets for grants to the soil conservation districts for downer cow composting education; (X) $20,000.00 to the secretary of administration for a grant to the Vermont civil war hemlock society for acquisition of a civil war cannon. (6) Sixth, $3,000,000.00 shall be transferred to the human services caseload reserve; (7) Seventh, $4,000,000.00 shall be transferred to the state teachers’ retirement fund; (8) Eighth, $1,000,000.00 is appropriated to the secretary of human services and may only be spent if the community-based services Federal 1115 waiver is approved. If the waiver is approved, the funds shall be transferred to the department of aging and disabilities and used for a grants program for community-based service infrastructure; (9) Ninth, $600,000.00 is appropriated to the legislature to provide funding for up to 20 weeks of legislative session in 2005. (10) Tenth, $3,220,000.00 is transferred to the general fund surplus reserve established in Sec. 277(5) of No. 147 of the Acts of 1998, as amended by Sec. 88 of No. 1 of the Acts of 1999. Said funds shall remain in the general fund surplus reserve pending appropriation by the general assembly; (11) Eleventh, $2,000,000.00 shall be transferred to the Vermont health access trust fund; (12) Twelfth, the next $14,000,000.00 shall be transferred in equal portions to the extent available to the facilities operations revolving fund and the financial management system development special fund. An amount not to exceed $1,560,000.00 of any remaining negative balance in the financial management system development special fund shall be listed as an outstanding obligation in the transportation fund operating statement. This allocation of negative fund balance shall be reduced by any application of transportation funds to the financial management system development special fund; 255 THURSDAY, MAY 20, 2004 (b) Any remaining funds shall be equally distributed between the Vermont health access trust fund and a general fund reserve for school construction obligations of the state. Sec. 288a. REPEAL OF DUPLICATE LEAD SINKER BILL APPROPRIATION (a) Sec. 3(c) of H.516 of 2004 is hereby repealed. Sec. 289. FISCAL YEAR 2005 CONTINGENT APPROPRIATIONS AND TRANSFERS (a) In the event the official 2005 fiscal year revenue forecast for the available general fund adopted by the emergency board at its July 2004 meeting exceeds $925,480,000.00, there is appropriated to the extent available the following: (1) First, $330,000.00 to the department of corrections which shall be used if the total population housed in Vermont exceeds the rated capacity of the Vermont facilities. It is the intent of the general assembly that this excess shall be limited to 25 beds and that these 25 beds shall be proportionately distributed throughout the Vermont facilities.

(2) Second, any undesignated balance in the general fund shall be deposited in the general fund surplus reserve established in Sec. 277(5) of No. 147 of the Acts of 1998, as amended by Sec. 88 of No. 1 of the Acts of 1999. Said funds shall remain in the general fund surplus reserve pending appropriation by the general assembly. Sec. 289a. FISCAL YEAR 2005 CONTINGENT DEPARTMENTAL BUDGET ADJUSTMENT

(a) In the event that the official 2005 fiscal year revenue forecast for the available general fund adopted by the emergency board at its July 2004 meeting is below $925,480,000.00, the secretary of administration shall revert to the general fund an amount not to exceed $1,000,000.00 of the shortfall from general funds otherwise appropriated to meet agencies’ pay act obligations in Sec. 285 of this act. In the event that such a reversion takes place, the emergency board shall use its transfer authority to ensure that sufficient funds are available to fully fund the pay act general fund appropriation at its July 2004 meeting. Sec. 289b. TRANSPORTATION FUND TRANSFERS AND APPROPRIATIONS (a) Notwithstanding any other provisions of law, the fiscal year 2004 unreserved undesignated transportation fund balance on a budgetary basis as

JOURNAL OF THE HOUSE 256 determined by the commissioner of finance and management on July 31, 2004, is hereby transferred and appropriated as available in the following order: (1) First, the necessary portion of the balance is transferred to the transportation fund budget stabilization reserve to attain its statutory maximum; (2) Second, up to $1,000,000.00 of any remaining amounts is appropriated to the agency of transportation as required for state match or direct expenditure as needed for the Montpelier – Bolton interstate paving work, including the following projects: IM 089 – 2 (33), IM 089 -2 (34); (3) Third, up to $1,560,000.00 of any remaining funds is transferred to the financial management system development special fund to meet transportation agency obligations; (4) Fourth , up to $150,000.00 of any remaining funds is appropriated to the department of public safety for vehicle related expenses for state police;

(5) Fifth , any remaining amounts are appropriated to the agency of transportation for activities as determined in the discretion of the secretary, among projects authorized in the state’s transportation capital program for fiscal year 2005 as approved by the general assembly within the maintenance state system, paving and town highway bridge programs. Sec. 290. SUSTAINABLE HEALTH CARE STUDY (a) The general assembly recognizes that state supported health care programs face major financial issues in the coming years. These financial issues will require changes in financing and program design. In that state sponsored programs are an integral part of the state’s health care system, the financial solutions need to take into account system-wide impacts. (b) It is imperative that the administration and the general assembly work together to develop strategies to address these financial issues. The administration and the joint fiscal office shall work collaboratively in developing analyses and policy alternatives. (c) In coordination with the joint fiscal committee meetings in September and November of 2004, there shall be special committee meetings which shall include the joint fiscal committee, the chair and vice chair of the health access oversight committee, the secretaries of the agency of human services and agency of administration, and the commissioner of the department of banking, insurance, securities, and health care administration. 257 THURSDAY, MAY 20, 2004 (d) At these special meetings, the legislative fiscal office, legislative council, and the administration staff shall present analysis and findings including information on the following: (1) Specific alternatives to address the health access trust fund shortfall in fiscal year 2006 and in subsequent years; (2) A review of activities of other states, health care literature and other public policy information on sustainable financing and content of state health care programs. For the purposes of this section, health care programs include tax credits and other financing incentives. The review shall include strategies for health care financing alternatives and allocation of health care resources, universal coverage options, and issues of program operational efficiency; and (3) The impacts various approaches will have on costs, quality, and access to health care in the public and private health care markets and the fiscal impact on other state funds and programs. Sec. 291. Sec. 282 of No. 66 of the Act of 2003, as further amended by Sec. 74 of No. 80 of 2004 is amended to read: Sec. 282. 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) The sum of $288,000.00 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 $288,000.00 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 $12,604,000.00 is appropriated from the housing and conservation trust fund to the housing and conservation trust board. Notwithstanding 10 V.S.A. § 312, amounts above $12,604,000.00 from the property transfer tax that would otherwise be are deposited into the Vermont housing and conservation trust fund shall instead be deposited transferred into the general fund. (3) The sum of $3,769,920.00 $4,084,920.00 is appropriated from the municipal and regional planning fund as follows: (A) $2,638,944.00 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b);

JOURNAL OF THE HOUSE 258 (B) $753,984.00 for disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b); (C) $376,992.00 to the geographic information system. (D) $250,000.00 to the department of housing and community affairs for distribution by agreement of the Vermont land use education and training collaborative with the regional planning commissions to provide outreach and training for municipal officials on municipal land use planning regulation. The regional planning commissions shall perform these outreach and training activities in coordination and consultation with the Vermont land use education and training collaborative. (E) $65,000.00 to housing and community affairs to be distributed to regional planning commissions that are, or may become, responsible for administration of federal grants from the environmental protection agency for brownfields analysis and remediation to cover expenses associated with such administrative costs. (4) Notwithstanding 24 V.S.A. § 4306(a), amounts above $3,769,920.00 $4,084,920.00 from the property transfer tax that would otherwise be are deposited into the municipal and regional planning fund shall instead be deposited transferred into the general fund. Sec. 292. MEDICAL MALPRACTICE STUDY COMMITTEE (a) A committee is established to study issues related to medical malpractice actions and insurance. (b) The committee shall consist of the following members: (1) the commissioner of the department of banking, insurance, securities, and health care administration or designee; (2) the executive vice-president of the Vermont medical society or designee; (3) the executive director of the Vermont hospital association or designee; (4) an attorney appointed by the Vermont trial lawyers association; (5) a plaintiff’s attorney appointed by the Vermont bar association; (6) the state health care ombudsman; and (7) a member appointed by the American insurance association. (c) The committee shall consider the following: 259 THURSDAY, MAY 20, 2004 (1) whether and how medical malpractice lawsuits have affected insurance costs for Vermont health care providers, including: (A) whether jury verdicts and settlements in Vermont have had an effect on insurance costs for Vermont health care providers; and (B) whether jury verdicts and settlements in other states have had an effect on insurance costs in those states, nationally, or in Vermont; (2) if medical malpractice lawsuits have affected insurance costs for Vermont health care providers, whether and how statutory changes could reduce those costs; (3) whether insurance costs for Vermont health care providers are rising while the payments insurers make for medical malpractice claims are decreasing, and if so, why this apparent discrepancy exists; (4) whether factors other than medical malpractice actions have had an effect on insurance costs for health care providers nationally and in Vermont; (5) whether and how caps on damages in medical malpractice actions would affect insurance costs for Vermont health care providers, including whether such caps enacted in other states have affected insurance costs for health care providers in those states, nationally, or in Vermont; (6) whether it would be feasible for the state to provide some assistance to health care providers who have particularly high insurance costs, and how such a system would operate; (7) whether it would be feasible to create a fixed compensation system for medical malpractice cases based on pre-set payment amounts for particular types of injuries, including how such a system would operate and whether it would have an impact on medical malpractice insurance costs; (8) whether the state can and should require insurers to base their rates on claims experience in Vermont; (9) whether a Vermont health care facility which obtains medical malpractice insurance from a captive insurance company should be required to do so with a Vermont-based captive insurer; (10) whether any efforts have been or should be undertaken to reduce the incidents of medical malpractice through the underwriting process; (11) whether insurance reforms would have an impact on medical malpractice insurance costs, including such reforms as improved experience rating, public involvement in rate proceedings, compressing rate

JOURNAL OF THE HOUSE 260 classifications, state reinsurance pools, improved self-insurance opportunities, and disclosure of insurers’ investment and dividend income to policyholders; (12) whether legislative action is necessary or advisable in the area of medical malpractice actions, and, if so, particular recommendations for legislation; and (13) any other issues which the committee believes would have an impact on the availability or affordability of medical malpractice insurance in Vermont. (d)(1) For purposes of assisting the committee to understand the factors that contribute to the costs of medical malpractice insurance, the commissioner of banking, insurance, securities, and health care administration shall have the authority, pursuant to 8 V.S.A. § 13, to request the production of the following information to a qualified independent third-party consultant engaged by the commissioner: (A) from hospitals in Vermont, the cost of medical malpractice insurance, including the cost of reinsurance, for the hospital and its employees; (B) from hospitals that are self-insured, their costs for medical malpractice-related expenditures, including amounts spent on claims, defense costs, and reinsurance; (C) from insurers providing medical malpractice insurance to health care providers or health care facilities in Vermont, claim information relating to those providers or facilities; and (D) any other information that the commissioner determines to be necessary. (2) Information filed under this section shall be in a form to be determined by the commissioner after consultation with the third-party consultant, shall be provided only to the consultant and to the commissioner for the sole purpose of carrying out the provisions of this section, shall be otherwise confidential at all times, and shall not be subject to disclosure as a public record under 1 V.S.A. § 316. It shall be made available to the committee only in summary statistical form that does not identify individual providers, health care facilities, or patients. Hospitals located outside this state that serve a significant number of Vermont residents or employ a significant number of health care professionals who also practice in Vermont, as determined by the committee, shall be invited to report such information. (e) The representative of the department of banking, insurance, securities, and health care administration shall serve as chair of the committee. 261 THURSDAY, MAY 20, 2004 (f) All members of the committee shall serve on the committee for the duration of the study unless circumstances dictate a permanent replacement. Vacancies shall be appointed in the same manner as original appointments. (g) The committee may meet for no more than 12 meetings or public hearings and shall have such powers as are needed to carry out the purposes of this section. (h) The committee shall have the assistance and cooperation of the department of banking, insurance, securities, and health care administration, which shall provide professional and administrative support for the committee. (i) Committee members who are not full-time state employees shall be entitled to per diem and expenses as provided in 32 V.S.A. § 1010. (j) The committee shall report its findings and recommendations, including proposals for legislative action, to the general assembly and the governor no later than December 15, 2005, whereupon it shall cease to exist. Sec. 293. CRIMINAL CODE STUDY COMMITTEE (a) The general assembly finds that the Vermont criminal code is in need of a general review to ensure that it is comprehensive, clear, well-organized, current, and consistent. The general assembly recognizes that a substantial body of case law has been built upon the existing code, and a complete rewrite of the code would likely result in years of litigation. Therefore, it is not the intent that the code be entirely rewritten, but that a committee conduct an examination of the code to identify how it could be improved in a balanced manner that would be beneficial to all. (b) The criminal code study committee is established for the purpose of reviewing all state criminal laws throughout the statutes and making recommendations to the general assembly for reasonable necessary updates to the criminal code. (c) The committee shall consist of the following members: (1) two members of the senate appointed by the committee on committees; (2) two members of the house of representatives appointed by the speaker; (3) the administrative judge, or designee, provided that the designee is a sitting or retired Vermont judge; (4) the executive director of the department of state’s attorneys and sheriffs, or designee;

JOURNAL OF THE HOUSE 262 (5) the attorney general or designee; (6) a representative of the Vermont police association; (7) a state trooper appointed by the state police bargaining unit of the Vermont state employees’ association; (8) the defender general or designee; (9) a staff public defender appointed by the defender general; (10) a defense attorney appointed by the Vermont bar association; and (11) the commissioner of public safety or designee. (d) The committee shall consider the following: (1) terms of imprisonment for consistency and appropriateness; (2) fines for consistency and appropriateness; (3) whether certain statutes should be amended for clarity; (4) whether graduated degrees should be employed for offenses; (5) whether older statutes should be updated; (6) whether the statutes and chapters are organized efficiently; (7) methods to identify and highlight annual changes in the law; (8) any recommendations from the director of the law enforcement division of the department of fish and wildlife; and (9) any other issues the committee finds relevant to creating a comprehensive and clear criminal code. (e) The judge shall serve as chair of the committee. A vice chair may be elected by the committee. (f) Legislative members of the committee shall serve only while in office. A substitute shall be appointed for a legislator who no longer serves in such capacity. All other members of the committee shall serve on the committee for the duration of the study unless circumstances dictate a permanent replacement. Vacancies shall be appointed in the same manner as original appointments. (g) The committee shall have the assistance and cooperation of the department of corrections, the department of social and rehabilitation services, the Vermont center for crime victim services, and all other state and local agencies and departments. The legislative council and the joint fiscal office 263 THURSDAY, MAY 20, 2004 shall provide professional and administrative support for the committee. The committee may hold public hearings. (h) Legislative members of the committee shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 406. The member appointed by the bar association shall be entitled to per diem compensation and reimbursement for expenses in the same manner as legislative members. (i) The committee findings and recommendations, including proposals for legislative action, shall be presented to the general assembly and the governor no later than December 15, 2006 whereupon the committee shall cease to exist. * * * General * * * Sec. 294. 2 V.S.A. § 20(a) is amended to read: (a) Notwithstanding any other provision of law Unless otherwise provided by law, whenever it is required by statute, regulation, or otherwise that an agency submit an annual, biennial, or other periodic report to the general assembly, that requirement shall be met by submission by January 15 of copies of the report, for activities in the preceding fiscal year, to the clerk of the house, the secretary of the senate, the legislative council, and such individual members of the general assembly or committees that specifically request a copy of the report. To the extent practicable, reports shall also be placed on the agency’s internet website. No general distribution or mailing of such reports shall be made to members of the general assembly. Sec. 294a. REPEALS (a) The following are repealed: (1) 32 V.S.A. § 507 (fees received by salaried officers). (2) 3 V.S.A. § 208 (report to governor concerning needs of departments). * * * Treasurer * * * Sec. 294b. 32 V.S.A. § 110 is added to read: § 110. REPORTS (a) The treasurer shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects: (1) The Vermont higher education endowment trust fund, pursuant to 16 V.S.A. § 2885(e).

JOURNAL OF THE HOUSE 264 (2) The firefighters’ survivors benefit expendable trust fund, pursuant to 20 V.S.A. § 3175(b). (3) The trust investment account, pursuant to 32 V.S.A. § 434(a)(5). (4) Charges for credit card usage by agency, department, or the judiciary, pursuant to 32 V.S.A. § 583(f). (5) Transfers of unspent proceeds derived from the sale of state bonds or notes, pursuant to 32 V.S.A. § 954(c). (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294c. REPEALS (a) The following are repealed: (1) 3 V.S.A. § 576(e)(2) (estimate of appropriations to the Social Security contribution fund). (2) 32 V.S.A. § 4733 (abstract of tax warrants). Sec. 294d. 16 V.S.A. § 2885(e) is amended to read: (e) Annually, by September 30, the state treasurer shall render a financial report on the receipts, disbursements and earnings of the fund for the preceding fiscal year to the commission on higher education funding. Sec. 294e. 32 V.S.A. § 434(a)(5) is amended to read: (5) Annually, the treasurer shall prepare a report to the general assembly on the financial activity of the trust investment account. * * * Vermont State Employees’ Retirement Board * * * Sec. 294f. 3 V.S.A. § 471a is added to read: § 471a. REPORTS (a) The board shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects: (1) The fiscal transactions of the retirement system, pursuant to 3 V.S.A. § 471(g). (2) The results of an actuarial reevaluation of the retirement fund, pursuant to 3 V.S.A. § 473a. (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294g. 3 V.S.A. § 471(g) is amended to read: 265 THURSDAY, MAY 20, 2004 (g) The retirement board shall keep a record of all its proceedings, which shall be open to public inspection. It shall publish annually and distribute to the general assembly a report showing the fiscal transactions of the retirement system for the preceding fiscal year, the amount of the accumulated cash and securities of the system, and the last balance sheet showing the financial condition of the retirement system by means of an actuarial valuation of the assets and liabilities of the system. * * * Capital Debt Affordability Advisory Committee * * * Sec. 294h. 32 V.S.A. § 1001a is added to read: § 1001a. REPORTS The capital debt affordability advisory committee shall prepare and submit, consistent with 2 V.S.A. § 20(a), a report on g eneral obligation debt, pursuant to subsection 1001(c) of this title. * * * Vermont Municipal Bond Bank * * * Sec. 294i. 24 V.S.A. § 4571a is added to read: § 4571a. REPORTS The Vermont municipal bond bank shall prepare and submit, consistent with 2 V.S.A. § 20(a), a report on activities for the preceding calendar year, pursuant to section 4594 of this title. * * * Vermont Educational and Health Buildings Financing Agency * * * Sec. 294j. 16 V.S.A. § 3862 is amended to read: § 3862. REPORTS The Vermont educational and health buildings finance agency shall prepare and submit, consistent with 2 V.S.A. §20(a), to the governor annually by January 15 a complete report listing all projects applied for, planned, in progress and completed, and a complete financial report duly audited and certified by a certified public accountant to be distributed in the same way as state departmental reports. * * * Department of Banking, Insurance, Securities, and Health Care Administration * * * Sec. 294k. 8 V.S.A. § 14 is amended to read: § 14. ANNUAL REPORT AND DISTRIBUTION OF ANNUAL REPORT REPORTS

JOURNAL OF THE HOUSE 266 (a) The commissioner of banking, insurance, securities, and health care administration shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects: (a)(1)(A) The commissioner shall report annually, on or before June 1, to the governor as to the conditions of persons regulated by the banking division. and The commissioner shall report annually, on or before September 1, to the governor as to the conditions of all insurance companies chartered by or doing business in this state. The reports may be separate and shall contain statements as to the financial condition of each institution, and any other information or recommendations which the commissioner deems appropriate. The report shall also contain a review of the rules of the department, regardless of the process for adopting such rules, at a frequency such that each rule is reviewed at least every five years for efficiency and effectiveness in carrying out the policies and goals of this state relating to financial institutions, insurance mechanisms and the sale of investments. (b)(B) The annual report of the commissioner required by this section subdivision shall contain a listing of subsidiary and affiliate organizations formed or owned by a Vermont financial institution for the purpose of engaging in any of the powers authorized by section 14106 of this title. The report shall also contain a listing of the amount of a Vermont financial institution's loans and assets invested in such organizations. (c)(C) The commissioner shall cause the annual report to be published for general distribution, and shall distribute them to each member of the house commerce and senate finance committees of the general assembly, to other members of the general assembly under section 20 of Title 2 and to others as the commissioner deems appropriate. Such distribution may be effected electronically or by other similar means. (2) The managed behavioral health care organizations task force, pursuant to subsection 4089b(g) of this title. (3) Health care budget projections, pursuant to 18 V.S.A. § 9406(b)(4). (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294l. Sec. 25 of No. 53 of the Acts of 2003 is amended to read: Sec. 25. REPORT ON COLLABORATION AMONG HOSPITALS The commissioner of banking, insurance, securities, and health care administration shall invite Fletcher Allen Health Care and the Dartmouth Hitchcock Medical Center to identify fields of excellence or discrete areas of 267 THURSDAY, MAY 20, 2004 specialty focus for the respective health care institutions, and to make recommendations for collaboration. The commissioner shall report to the general assembly on or before December 15, 2003 and annually thereafter through December 15, 2005 on the progress of the collaboration. Sec. 294m. 18 V.S.A. § 9406(b)(4) is amended to read: (4) The division shall prepare a report of the final projections made under this subsection, and file the report with the general assembly on or before January 115 of each year. * * * Department of Labor and Industry * * * Sec. 294n. 21 V.S.A. § 1a is added to read: §1a. REPORTS (a) The commissioner of labor and industry shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects: (1) Activities of the state fire marshal, pursuant to 20 V.S.A. § 2681(a). (2) Injuries resulting from the use of fireworks and sparklers, pursuant to 20 V.S.A. § 3132(b). (3) Inspected state buildings, pursuant to section 255 of this title. (4) Attorney’s fees, pursuant to subsection 678(c) of this title. (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294o. REPEALS (a) The following are repealed: (1) Sec. 4 of No. 15 of the Acts of 2003 (annual sparkler report distribution). (2) 21 V.S.A. § 707 (workers’ compensation report to the governor). (3) 21 V.S.A. § 1313 (employment stabilization). Sec. 294p. 20 V.S.A. § 2681(a) is amended to read: (a) The commissioner of public safety shall be ex-officio ex officio fire marshal. The commissioner of labor and industry shall annually by January 15 submit to the governor a detailed report as fire marshal which shall be included in his annual report to the governor, prepared in collaboration with the fire marshal. A copy of this report shall be mailed to each fire department paid or volunteer, in the state of Vermont. Subject to the approval of the governor, the

JOURNAL OF THE HOUSE 268 commissioner may appoint a deputy fire marshal, and other necessary assistants, who shall assist him or her as state fire marshal. Sec. 294q. 20 V.S.A. § 3132(b) is amended to read: (b) The state fire marshal shall have power to adopt reasonable rules and regulations for granting permits for supervised public displays of fireworks by municipalities, fair associations, amusement parks, and other organizations or groups of individuals. The state fire marshal and the department of labor and industry shall compile an annual report of all injuries to person and property resulting from the use of fireworks and sparklers reported for the preceding fiscal year. The commissioner of labor and industry shall annually by January 15 submit the report to the house committee on general, housing and military affairs and the senate committee on economic development, housing and general affairs. Sec. 294r. 21 V.S.A. § 252(d) is amended to read: (d) The commissioner shall make all practical efforts to process permits in a prompt manner. The commissioner shall establish time limits for permit processing as well as procedures and time periods within which to notify applicants whether an application is complete. The commissioner shall report annually by February 15 to the house and senate committees on general affairs and government operations. The annual report shall assess the agency's performance in meeting the limits; identify areas which hinder effective agency performance; list fees collected for each permit; summarize changes made by the agency to improve performance; describe staffing needs for the coming year; and certify that the revenue from the fees collected is at least equal to the costs associated with those positions. Sec. 294s. 21 V.S.A. § 255 is amended to read: § 255. STATE BUILDINGS The commissioner shall biennially cause an examination to be made of all state buildings and shall report his findings and recommendations to the secretary of administration on or before July 1 of odd-numbered years establish a risk classification system for all state buildings. State buildings classified as high or medium risk shall be inspected at least every five years, and the commissioner’s findings and recommendations shall be reported to the secretary of administration. * * * Department of Public Safety * * * Sec. 294t. 20 V.S.A. § 1872a is added to read: § 1872a. REPORTS 269 THURSDAY, MAY 20, 2004 (a) The commissioner of public safety is responsible for preparing and submitting, consistent with 2 V.S.A. § 20(a), reports on the following: (1) The radiological emergency response plan fund, pursuant to subdivision 38(a)(4) of this title. (2) DUI reduction and enforcement program, pursuant to Sec. 3(a) and (b) of No. 117 of the Acts of the 1997 Adj. Sess. (1998). (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294u. PUBLIC SAFETY; QUARTERLY REPORTS The following language in Sec. 7 of No. 260 of the Acts of 1972 and Sec. 7 of No. 77 of the Acts of 1973 is repealed: “The commissioner of public safety will submit a confidential quarterly report to the legislature or the emergency board if the legislature is not in session, of all expenditures made from the imprest cash fund.” The following language in Sec. 7 (ww) of No. 262 of the Acts of 1974 and Sec. 7(rr)(2) of No. 118 of the Acts of 1975 is repealed: “The commissioner of public safety shall submit a confidential quarterly report to the legislature or the emergency board if the legislature is not in session, of all expenditures made from the imprest cash fund.” Sec. 294v. REPEALS (a) The following are repealed: (1) Sec. 10a of No. 78 of the Acts of 1989 (use of retired state police officers). (2) Sec. 61 of No. 66 of the Acts of the 1999 Adj. Sess. (2000) (Brady law record checks). (3) Sec. 7(b) of No. 142 of the Acts of the 1999 Adj. Sess. (2000) (consolidation of dispatch centers). (4) Sec. 19(c)(4) of No. 148 of the Acts of the 1999 Adj. Sess. (2000) (record of E-911 activities). (5) Sec. 33(b) of No. 160 of the Acts of the 1999 Adj. Sess. (2000) (use of video cameras). (6) Sec. 18(a) of No. 49 of the Acts of the 2001 (Byrne Grant recipients). (7) 20 V.S.A. § 1953(m) (activities of the New England State Police Administrators’ Conference). (8) 20 V.S.A. § 2304 (unlawful firearms).

JOURNAL OF THE HOUSE 270 * * * Department of Education * * * Sec 294w. REPEALS (a) The following are repealed: (1) 16 V.S.A. § 1533(c) (in coordination with the Vermont advisory council on vocational education, commissioner’s evaluation of the effectiveness of vocational centers). (2) 16 V.S.A. § 1534(c) (in coordination with the Vermont advisory council on vocational education, commissioner’s evaluation of the effectiveness of each course of study offered by vocational centers). (3) 16 V.S.A. § 2062 (publication of all interstate educational personnel contracts) (4) 16 V.S.A. § 2952 (report on education of children with disabilities). (5) 16 V.S.A. § 4027(a) (data and calculation used to determine the predictable yield). (6) Sec. 15 of Act 138 of 1998 (recommendations for technical education). Sec. 294x. 21 V.S.A. § 1a is amended to read: §1a. REPORTS (a) The commissioner of labor and industry shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects: (1) Activities of the state fire marshal, pursuant to 20 V.S.A. § 2681(a). (2) Injuries resulting from the use of fireworks and sparklers, pursuant to 20 V.S.A. § 3132(b). (3) Inspected state buildings, pursuant to section 255 of this title. (4) Attorney’s a report on attorney’s fees, pursuant to subsection 678(c) of this title. (b) Reports required to be submitted to the general assembly annually by January 15 shall be consolidated in a single document. Sec. 294y. 20 V.S.A. § 2681(a) is amended to read: (a) The commissioner of public safety shall be ex officio fire marshal. The commissioner of labor and industry shall annually by January 15 submit to the governor a detailed report prepared in collaboration with the fire marshal. A copy of this report shall be mailed to each fire department paid or volunteer, in 271 THURSDAY, MAY 20, 2004 the state of Vermont. Subject to the approval of the governor, the commissioner may appoint a deputy fire marshal and other necessary assistants who shall assist him or her as state fire marshal. Sec. 294z. 20 V.S.A. § 3132(b) is amended to read: (b) The state fire marshal shall have power to adopt reasonable rules and regulations for granting permits for supervised public displays of fireworks by municipalities, fair associations, amusement parks, and other organizations or groups of individuals. The state fire marshal and the department of labor and industry shall compile an annual report of all injuries to person and property resulting from the use of fireworks and sparklers reported for the preceding fiscal year. The commissioner of labor and industry state fire marshal shall annually by January 15 submit a report to the house committee on general, housing and military affairs and the senate committee on economic development, housing and general affairs. Sec. 294aa. 20 V.S.A. § 2731(d) is amended to read:

(d) The commissioner shall make all practical efforts to process permits in a prompt manner. The commissioner shall establish time limits for permit processing as well as procedures and time periods within which to notify applicants whether an application is complete. The commissioner shall report annually by February 15 to the house committee on general, housing and military affairs, the senate committee on economic development, housing and general affairs, and the house and senate committees on government operations. The annual report shall assess the agency’s performance in meeting the time limits; identify areas which hinder effective agency performance; list fees collected for each permit; summarize changes made by the agency to improve performance; describe staffing needs for the coming year; and certify that the revenue from the fees collected is at least equal to the costs associated with those positions. Sec. 294bb. 20 V.S.A. § 2735 is amended to read:

§ 2735. STATE BUILDINGS The commissioner shall biennially cause an examination to be made of all state buildings and shall report findings and recommendations to the secretary of administration on or before July 1 of odd-numbered years establish a risk classification system for all state buildings. State buildings classified as high or medium risk shall be inspected at least every five years, and the commissioner’s findings and recommendations shall be reported to the secretary of administration.

JOURNAL OF THE HOUSE 272 Sec. 295. Sec. 120 of H.175 of 2004 is amended to read: Sec. 120. APPROPRIATION FOR TRAINING In fiscal year 2005 2004, there is appropriated $250,000.00 from the general fund special funds through the department of housing and community affairs for distribution by agreement of the Vermont land use education and training collaborative with the regional planning commissions to provide outreach and training for municipal officials on municipal land use planning and regulation. The regional planning commissions shall perform these outreach and training activities in coordination and consultation with the Vermont land use education and training collaborative. Sec. 296. CORRECTIONS TO H.175 (a) Notwithstanding its terms to the contrary, the following sections of H.175, as enacted during 2004, are amended as follows: (1) in Sec. 95, 24 V.S.A. § 4412(1)(F)(ii)(I), by striking the word “an” and inserting in lieu thereof the words: “a new”; (2) in Sec. 119(a), by striking the following: “Sections 83 through 107” and inserting in lieu thereof the following: “Sections 82 through 109”; (3) in Sec. 119(c) and (d), by striking the date “September 1, 2005” in both places, and inserting in both places the date: “July 1, 2004”. Sec. 296a. WASTE FACILITIES PANEL; POSITIONS (a) Notwithstanding Sec. 121(d)(3) of H.175, the two positions supporting the waste facility panel shall be maintained through fiscal year 2005. Sec. 297. 3 V.S.A. § 455(a)(13) is amended to read: (13) "Normal retirement date" shall mean (A) with respect to a group A member, the first day of the calendar month next following (i) attainment of age sixty-five 65, and following completion of five years of creditable service for those members hired on or after July 1, 2004 or (ii) attainment of age sixty- two years 62 and completion of twenty 20 years of creditable service, whichever is earlier; (B) with respect to a group C member, the first day of the calendar month next following attainment of age fifty-five 55, and following completion of five years of creditable service for those members hired on or after July 1, 2004; (C) with respect to a group D member, the first day of the calendar month next following attainment of age sixty-two 62 and completion of five years of creditable service,; and (D) with respect to a group F member, the first day of the calendar month next following attainment of age 62 , and following completion of five years of creditable service for those members 273 THURSDAY, MAY 20, 2004 hired on or after July 1, 2004, or completion of 30 years of creditable service, whichever is earlier. Sec. 297a. 3 V.S.A. § 464(a) is amended to read: (a) If the retirement board shall find on the basis of such evidence as may come before it that a group A, group D, or group F member in service died prior to his or her retirement under the system as the natural and proximate result of an accident occurring at a definite time and place during the course of his or her performance of duty as an employee and that such accident was not the result of his the member’s own gross negligence or willful misconduct, a retirement allowance shall be paid to his or her designated dependent beneficiary during his or her life. Sec. 297b. 3 V.S.A. § 465(c) is amended to read: (c) If a group A, group D, or group F member dies in service after becoming eligible for early retirement or after completing 20 years of creditable service, a retirement allowance will be payable to the member's designated dependent beneficiary during his or her life. If the designated dependent beneficiary so elects, however, the return of the member's accumulated contributions shall be made in lieu thereof. Sec. 297c. 3 V.S.A. § 465(f) is amended to read: (f) Unless the designated dependent beneficiary elects to receive payment of a deceased member's accumulated contributions as provided under subsection (c) of this section, the retirement allowance payable to the designated dependent beneficiary of a deceased group A, group D, or group F member under this section shall be equal to the retirement allowance that would have been payable had the member elected option 3 and retired on the member's date of death. In the case of a member who has not attained the normal retirement date as of his or her date of death, the retirement allowance shall be computed on the basis of a disability retirement allowance or an early retirement allowance, whichever provides the greater benefit to the dependent beneficiary. If the deceased member has no eligible dependent beneficiary, the member's accumulated contributions shall be payable in accordance with the provisions of subsection (b) of this section. Sec. 297d. 16 V.S.A. § 1931(20) is amended to read: (20) "Teacher" shall mean any licensed teacher, principal, supervisor, superintendent, or any professional licensed by the state board of education regularly employed for the full normal working time for his or her position in a public day school within the state, or in any school or teacher-training institution located within the state, controlled by the state board of education,

JOURNAL OF THE HOUSE 274 and supported wholly by the state; or any teacher, principal, supervisor, superintendent, or any professional regularly employed for the full normal working time for his or her position in any nonsectarian independent school which serves as a high school for the town or city in which the same is located, provided such school is not conducted for personal profit. It shall also mean any person employed in a teaching capacity in certain public independent schools designated for such purposes by the board of trustees in accordance with section 1935 of this title. In all cases of doubt the board of trustees, herein defined, shall determine whether any person is a teacher as defined in this chapter. It shall not mean a person who is teaching with an emergency license. Sec. 297e. 16 V.S.A. § 1937(a) is amended to read: (a) Upon written application to the board, any group A member may retire on a service retirement allowance on the first day of the calendar month next following the filing of the application or the member's separation from service, whichever date is later, provided that such member shall have attained age sixty 60, and following completion of five years of creditable service for those members hired on or after July 1, 2004, or have completed thirty 30 years of creditable service at the date of the member's retirement. Upon written application to the board, any group C member may retire on a service retirement allowance on the first day of the calendar month next following the filing of the application or the member's separation from service, whichever date is later, provided that such member shall have attained age sixty-two 62, and following completion of five years of creditable service for those members who are hired on or after July 1, 2004, or have completed thirty 30 years of creditable service at the date of the member's retirement. Sec. 297f. 16 V.S.A. § 1944(c)(12) is amended to read: (12) Payment of a portion of the cost of health and medical benefits provided by section subsection 1942(p) of this title for retired members shall be made from the pension accumulation fund. The board shall pay up to the amount determined by the board to be equal to eighty 80 percent (80%) of the cost of the applicable standard plan for retired members provided they had ten years of creditable service at the time of their retirement. The board shall pay an equal dollar amount for eligible retirees regardless of the plan selected. All eligible retirees may select health plan coverage from a range of plans approved by the board. Retired members may authorize deductions to be made from their monthly retirement allowance for the balance of the cost of such benefits for the retired members and their dependents. The board shall determine annually that part of the cost of the applicable standard plan in excess of fifty 50 percent (50 percent) of the cost for retirees, allocate forty- 275 THURSDAY, MAY 20, 2004 one 41 and one-half percent (41.5 percent) of that amount to active members, and adjust the members' contribution rate accordingly. Periodically, the board shall approve the following: * * * Sec. 297g. 24 V.S.A. § 5055(f) is added to read: (f) In any fiscal year in which a beneficiary resumes service, as that term is defined in section 5051 of this title, he or she shall again become a member of the system, shall contribute at the rate established for members of his or her group, and shall not be entitled to receive a retirement allowance if he or she is separated from service for a period of not less than 90 days. Sec. 297h. REPEAL (a) 3 V.S.A. § 473(c)(5) (liquidation of unfunded accrued liability) shall be repealed. Sec. 298. EFFECTIVE DATES (a) This section and Secs. 10, 33, 36, 51a, 120a, 130, 131, 132, 133, 141, 141a, 141b, 141c, 187a, 205a, 211a, 227, 232a, 234a(a)-(b), 254(a), 257(a), 281, 282, 283(a), 287a, 288, 291, 295, and 296 of this act shall be effective on passage. (b) Sec. 129 shall be effective on passage, and the amendment to Sec. 147(d) of No. 66 of the Acts of 2003 shall apply as of February 1, 2004. (c) Sec. 273 shall be effective July 1, 2005. (d) Secs. 128e and 128l shall take effect July 1, 2004 and shall apply to all health insurance policies offered on or after October 1, 2004, and to all other health insurance policies on and after October 1, 2004 upon renewal or their anniversary date, whichever is sooner, but in no event later than September 30, 2005; and (e) Sec. 128o shall take effect July 1, 2004, except that subsection 2003(h) of Title 33, requiring public disclosure of manufacturers and labelers entering into rebate agreements and certain prior authorization requirements under Medicaid, shall take effect when the waiver program authorized under subsection 2003(b) takes effect . (f) All appropriations made in this act and other appropriations made prior to July 1, 2004 to departments, divisions, offices, and entities of the agency of human services shall be transferred to their successors as set out in Secs. 106 through 106f of this act.

JOURNAL OF THE HOUSE 276 (g) Secs. 294x, 294y, 294z, 294aa and 294bb shall take effect on April 1, 2005. SUSAN J. BARTLETT RICHARD W. SEARS, JR. JOHN H. BLOOMER, JR. Committee on the part of the Senate RICHARD A. WESTMAN MARTHA P. HEATH PATRICIA A. O’DONNELL Committee on the part of the House Recess At four o’clock and fifty minutes in the afternoon, the Speaker declared a recess until seven o’clock in the evening. At seven o’clock and fifteen minutes in the evening, the Speaker called the House to order. Consideration Resumed; Committee of Conference Report Adopted H. 768 Consideration resumed on House bill, entitled An act making appropriations for the support of government; Which was considered and adopted on the part of the House. Thereupon, the report of the Committee of Conference was adopted. Rules Suspended; Report of the Second Committee of Conference Adopted H. 35 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to child support, custody and visitation; Was taken up for immediate consideration. The Speaker placed before the House the following Second Committee of Conference report: To the Senate and House of Representatives: 277 THURSDAY, MAY 20, 2004 The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate recede from its proposals of amendment and that the bill be amended by striking all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 15 V.S.A. § 656 is amended to read: § 656. COMPUTATION OF PARENTAL SUPPORT OBLIGATION * * * (c) If the noncustodial parent’s available income is greater than the self-support reserve but payment of a child support order based on application of the guideline would reduce the noncustodial parent’s income below the self-support reserve, the noncustodial parent’s share of the total support obligation shall be presumed to be the difference between the self-support reserve and his or her available income. If the noncustodial parent owes arrears to the custodial parent, the court shall not order the payment of arrears in an amount that, by itself or in combination with the noncustodial parent’s share of the total support obligation, would reduce the noncustodial parent’s income below the self-support reserve, unless the custodial parent can show good cause why the payment of arrears should be ordered despite the fact that such an order would drop the noncustodial parent’s income below the self - support reserve. Such arrears shall remain the responsibility of the noncustodial parent and be subject to repayment at a time when the noncustodial parent’s income is above the self-support reserve. Sec. 2. 15 V.S.A. § 663(e) is added to read: § 663. SUPPORT ORDERS; REQUIRED CONTENTS * * * (e) A child support order shall include the following language: “A PARENT OR ANY OTHER PERSON TO WHOM SUPPORT HAS BEEN GRANTED, OR ANY PERSON CHARGED WITH SUPPORT, MAY FILE A MOTION FOR A MODIFICATION OF A CHILD SUPPORT ORDER UNDER 15 V.S.A. § 660. A MODIFICATION MAY BE GRANTED UPON A REAL, SUBSTANTIAL, AND UNANTICIPATED CHANGE OF CIRCUMSTANCES, INCLUDING LOSS OF EMPLOYMENT OR A CONSIDERABLE REDUCTION OR INCREASE IN SALARY OR WAGES. AN OBLIGOR IS RESPONSIBLE FOR ANY REQUIRED PAYMENTS SET FORTH IN AN ORDER UNLESS THE ORDER IS VACATED OR MODIFIED BY A COURT. THUS, ANY SUBSEQUENT AGREEMENT BETWEEN THE PARTIES THAT DIFFERS FROM THE ORDER IS NOT

JOURNAL OF THE HOUSE 278 LEGALLY BINDING, AND THE OBLIGOR IS STILL LEGALLY REQUIRED TO PAY THE AMOUNT ORDERED BY THE COURT.” Sec. 3. 15 V.S.A. § 668a is amended to read: § 668a. ENFORCEMENT OF VISITATION (a) When a noncustodial parent who is ordered to pay child support or alimony and who is awarded visitation rights fails to pay child support or alimony, the custodial parent shall not refuse to honor the noncustodial parent’s visitation rights. (b) When a custodial parent refuses to honor a noncustodial parent’s visitation rights, the noncustodial parent shall not fail to pay any ordered child support or alimony. (c) If a custodial parent refuses to honor a noncustodial parent’s visitation rights without proper cause, the court may restore shall enforce such rights unless it finds good cause for the failure or that a modification of the visitation rights is in the best interests of the child. Unless restoration of the visitation is not in the best interests of the child, enforcement of the visitation rights shall include the restoration of the amount of visitation improperly denied. When a party files a motion for enforcement of parent-child contact under this subsection, the court shall conduct a hearing within 30 days of service of the motion. (d) A person who violates this section may be punished by contempt of court or other remedies as the court deems appropriate , including awarding attorney’s fees and costs to the prevailing party. (e) If a custodial parent refuses to honor a noncustodial parent’s visitation rights without good cause, the court may modify the parent-child contact order if found to be in the best interests of the child. Good cause shall include a pattern or incidence of domestic or sexual violence, a history of failure to honor the visitation schedule agreed to in the parent-child contact order, or reasonable fear for the child or the custodial parent’s safety. (f) All parent-child contact orders issued by the family court in connection with a divorce or parentage proceeding shall bear the following statement: “A PERSON WHO FAILS TO COMPLY WITH ALL TERMS OF THE CURRENT ORDER GOVERNING PARENT-CHILD CONTACT MAY BE SUBJECT TO CONTEMPT OF COURT CHARGES. THE COURT MAY IMPOSE ADDITIONAL REMEDIES, INCLUDING A MODIFICATION OF THE CURRENT PARENT-CHILD CONTACT ORDER IF FOUND TO BE IN THE BEST INTERESTS OF THE CHILD.” 279 THURSDAY, MAY 20, 2004 Sec. 4. 15 V.S.A. § 606(d) is added to read: § 606. ACTION TO RECOVER MAINTENANCE, CHILD SUPPORT, AND SUIT MONEY; SANCTION FOR NONCOMPLIANCE * * * (d) In lieu of interest on unpaid child support which has accrued under a child support order, a child support surcharge shall be imposed on past-due child support. The surcharge shall be computed and assessed monthly at a rate of one percent or an annual rate of 12 percent and shall not be compounded. All surcharges shall be deemed principal and not interest. Payments received for child support obligations shall be allocated and distributed as follows: (1) first to current support obligations; (2) second to arrearages; and (3) third to surcharge arrears. Sec. 5. 15 V.S.A. § 650 is amended to read: § 650. LEGISLATIVE FINDINGS AND PURPOSE The legislature finds and declares as public policy that after parents have separated or dissolved their marriage it is in the best interests of their minor child to have the opportunity for maximum continuing physical and emotional contact with both parents, unless direct physical harm or significant emotional harm to the child or a parent is likely to result from such contact. The legislature further finds and declares as public policy that parents have the responsibility to provide child support and that child support orders should reflect the true costs of raising children and approximate insofar as possible the standard of living the child would have enjoyed had the marriage not been dissolved family remained intact. Sec. 6. 15 V.S.A. § 658(b) is amended to read: (b) A request for support may be made by either parent, by a guardian, or by the departments department of social and rehabilitation services or social welfare prevention, assistance, transition, and health access, or by the office of child support, if a party in interest. A court may also raise the issue of support on its own motion. Sec. 7. 15 V.S.A. § 660 is amended to read: § 660. MODIFICATION * * *

JOURNAL OF THE HOUSE 280 (f) Notwithstanding the provisions of this section to the contrary, the court, in its discretion, may modify an order as to past support installments which accrued subsequent to the date of a non-custodial parent’s incarceration within the confines of a correctional facility. Sec. 8. 15 V.S.A. § 661 is amended to read: § 661. CHILD SUPPORT MAINTENANCE SUPPLEMENT (a) A party may request a child support maintenance supplement to be paid while a child support obligation arising out of an action for divorce support exists. After considering the respective financial circumstances of the parties, including gross income, assets, liabilities, including tax liabilities, and the obligation to pay child support, the court shall order payment of a child support maintenance supplement to the custodial parent obligee to correct any disparity in the financial circumstances of the parties if the court finds that the disparity has resulted or will result in a lower standard of living for the child than the child would have if living with the noncustodial parent. (b) Any sum awarded under this section shall be taken into consideration in making an order under section 752 of this title. (c) On motion of either parent or any other, a person to whom a child support maintenance supplement has previously been granted or any, a person previously charged with paying a child support maintenance supplement, and upon a showing of a real, substantial, and unanticipated change of circumstances, the court may annul, vary, or modify a supplement order, whether or not the order is based on a stipulation or agreement. A real, substantial, unanticipated change of circumstances shall be deemed to exist if the proportion of income of the parties varies more than 15 percent from the time the order was issued, or if either parent’s gross income changes by more than 15 percent. (d) This section shall not apply to orders or modifications made prior to April 1, 1987. Sec. 9. 15 V.S.A. § 787 is amended to read: § 787. EMPLOYER’S RESPONSIBILITY; COMPENSATION * * * (c)(1) Any employer who fails to withhold wages pursuant to a wage withholding order within 10 working days of receiving actual notice or upon the next payment of wages to the obligor, whichever is later, shall be liable to the obligee in the amount of the wages required to be withheld. 281 THURSDAY, MAY 20, 2004 (2) No employer who withholds wages from the obligor shall, without good cause, fail to forward payment to the registry for more than 30 days. An employer who violates this subdivision shall be assessed a civil penalty of not more than $100.00 for a first violation and not more than $1,000.00 for a second or subsequent violation. (3) A proceeding pursuant to this section shall be heard by the family court judge. Sec. 10. 33 V.S.A. § 3902(f) is added to read: (f) If a support order has been entered and the legal custodian and obligee relinquishes physical responsibility of the child to a caretaker without modifying the physical rights and responsibilities order, the office of child support may change the payee of support upon the caretaker’s receipt of reach up family assistance (RUFA) from the department of prevention, assistance, transition, and health access. The obligor’s obligation under the support order to pay child support and medical support continues but shall be payable to the office of child support upon the caretaker’s receipt of RUFA and shall continue so long as the assignment is in effect. The office of child support shall notify the obligor and obligee under the support order, by first class mail at last known address, of the change of payee. Sec. 11. 33 V.S.A. § 4103(a)(14) is amended to read: § 4103. REGISTRY (a) The office of child support shall establish a registry for the following purposes: * * * (4) Notifying employers in cases involving wage withholding of the amounts to be withheld for support, the amount of income exempt from withholding, and the dates for beginning, reducing, increasing, and terminating withholding pursuant to the terms of the support order. The office shall accommodate employer withholdings based upon the employer’s payroll period and shall provide return envelopes to the employer for sending the payment to the office. Sec. 12. 1 V.S.A. § 317(c) is amended to read: § 317. DEFINITIONS; PUBLIC AGENCY; PUBLIC RECORDS AND DOCUMENTS * * * (c) The following public records are exempt from public inspection and copying:

JOURNAL OF THE HOUSE 282 * * * (34) affidavits of income and assets as provided in 15 V.S.A. § 662 and Rule 4 of the Vermont Rules for Family Procedure. Sec. 13. STUDY (a) The house committee on judiciary shall convene while the general assembly is out of session for the purpose of examining the family court system and the laws relating to child support, child custody, parent - child contact, and any other issues the committee finds relevant to creating a comprehensive, fair, and functional family court system. The committee shall, at a minimum, review the following issues: (1) existing programs in family court, including the use of parent-child coordinators, panels, and mediators, as well as the funding of such programs; (2) existing certification requirements for resources used in family court; (3) the current policy of ordering sole custody to one parent when one parent objects to shared custody and related matters concerning custody such as parenting plans; (4) existing training of judges, court staff, pro se litigants, and attorneys; (5) the use of contempt charges for enforcement of payment of child support arrears and whether an updated criminal nonsupport statute is needed; (6) whether an automatic cost of living adjustment should be added to child support obligations and matters relating to the child support guidelines; (7) when a child support obligation should terminate in situations involving termination of parental rights, voluntary relinquishment, or adoption; (8) the role of family evaluations and how they should operate; (9) the role of guardians ad litem, attorneys appointed to represent the best interests of the child, and related issues; (10) supervised visitation programs; (11) domestic violence issues in family court, including whether a conviction for domestic violence should create a presumption against awarding custody; (12) whether the office of child support should enter into reciprocal arrangements on behalf of the state with authorities from other jurisdictions to establish and enforce support obligations; (13) employer responsibilities with respect to child support obligations; 283 THURSDAY, MAY 20, 2004 (14) whether the court should have the discretion to order an obligor to attend employment - , educational - , or training - related activities if the court finds that participation in such activities would assist fulfilling a child support obligation, and whether the court should have the discretion to order an obligor to attend substance abuse or other counseling if the court finds that such counseling may assist the parent to achieve stable employment; (15) the advisability of establishing an automatic cost of living adjustment to child support orders; and (16) the match of child support arrears against insurance settlements and the subsequent attachment procedures. (b) Members of the committee shall serve only while in legislative office. A substitute shall be appointed for a legislator who no longer serves in such capacity. Vacancies shall be appointed in the same manner as original appointments. (c) The committee shall have the assistance and cooperation of the judiciary and the administration. The legislative council and the joint fiscal office shall provide professional and administrative support for the committee. The committee may hold public hearings. (d) Members of the committee shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 406. The committee is authorized to meet up to five times to accomplish its work under this section. (e) The committee findings and recommendations, including proposals for legislative action, shall be presented to the general assembly and the governor no later than December 15, 2005. The committee shall issue a brief interim report on the insurance matter provided in subdivision (a)(16) of this section no later than January 15, 2005. Sec. 14. EFFECTIVE DATE Secs. 9 and 11 of this act shall take effect September 1, 2004. Committee on the Part of Committee on the Part of the Senate the House Sen. John Campbell Rep. Margaret Flory Sen. John Bloomer Rep. Michael Kainen Sen. Richard Sears Rep. William Lippert Which was considered and adopted on the part of the House.

JOURNAL OF THE HOUSE 284 Rules Suspended; Report of Committee of Conference Adopted H. 201 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to farm viability program; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the House accede to the Senate proposal of amendment with further amendment to read as follows: First: In Sec. 1, in 6 V.S.A. § 4710(b)(2), after the word “development” by adding “or designee” Second: In Sec. 1, in 6 V.S.A. § 4710(b)(6), by striking “and confirmed by” and by inserting in lieu thereof “in consultation with” Third: In Sec. 1, in 6 V.S.A. § 4710(b)(7), by striking the word “an” Fourth: In Sec. 1, in 6 V.S.A. § 4710(c), by striking “his or her” in the first instance and inserting in lieu thereof “their” Fifth: In Sec. 1, in 6 V.S.A. § 4710(d)(1), by striking “,” Sixth: In Sec. 1, in 6 V.S.A. § 4710(e)(1), in the last sentence, by striking the word “purpose” and inserting in lieu thereof the word “purposes” Seventh: In Sec. 1, in 6 V.S.A. § 4710 (e)(2), after “markets and” by inserting “the” Eighth: In Sec. 1, in 6 V.S.A. § 4710(f), the first sentence, by striking the word “The” and inserting in lieu thereof “In collaboration with the Vermont housing and conservation board, the” and in the first sentence by striking “and the Vermont housing and conservation board” Committee on the Part of Committee on the Part of the Senate the House Sen. Jeanette White Rep. Harvey Smith Sen. Claire Ayer Rep. Norman McAllister Sen. Hull Maynard Rep. Brian Dunsmore 285 THURSDAY, MAY 20, 2004 Which was considered and adopted on the part of the House. Rules Suspended; Report of Committee of Conference Adopted H. 538 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to trial by jury and jury service; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate 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. 4 V.S.A. § 437 is amended to read: § 437. CIVIL JURISDICTION OF DISTRICT COURT The district court shall have jurisdiction of the following actions: * * * (11) Municipal parking violation proceedings pursuant to 24 V.S.A. § 1974a(e), if the municipality has established an administrative procedure enabling a person to contest the violation, and the person has exhausted the administrative procedure. Sec. 2. 4 V.S.A. § 953 is amended to read: § 953. SOURCES OF NAMES (a) The jury commission, in order to ascertain names of persons eligible as jurors, may consult the latest census enumeration, the latest published city, town, or village telephone or other directory, the listers’ records, the elections records, and any other general source of names. (b) Notwithstanding any law to the contrary, the court administrator may obtain the names, addresses, and dates of birth of persons which are contained in the records of the department of motor vehicles, the department of employment and training, the department of taxes, and the department of prevention, assistance, transition, and health access. The court administrator

JOURNAL OF THE HOUSE 286 may also obtain the names of voters from the secretary of state. After the names have been obtained, the court administrator shall compile them and provide the names, addresses, and dates of birth to the jury commission in a form that will not reveal the source of the names. The jury commission shall include the names provided by the court administrator in the list of potential jurors. (c) There shall be continuous research for persons qualified and liable for jury service, in order to obtain as many prospective jurors as necessary and in order to limit as many prospective jurors as necessary and in order to limit as much as possible repetition of jury service. (d) No person’s name shall be placed on venire to serve in any state court of the state of Vermont more than once in any two-year period. (b)(e) All public officers shall, on request, furnish the jury commission or the court administrator without charge, any information it may require to enable it to select eligible persons, ascertain their qualifications, or determine the number needed. Sec. 3. 4 V.S.A. § 958 is amended to read: § 958. NONAPPEARANCE; PENALTY A juror who does not appear after being summoned, and does not submit an excuse satisfactory to the court in which he the juror was summoned to appear, shall be fined $50.00 assessed a civil penalty by the presiding judge of not more than $200.00. The prospective juror may be excused from paying the assessment for good cause shown or in the interests of justice. Sec. 4. 4 V.S.A. § 963 is amended to read: § 963. TERM OF SERVICE A person summoned to petit jury service shall be summoned to not appear before the court for voir dire no jury selection more than three times in any two-year period of time and shall be required to appear at the courthouse to serve as a juror on the date of trial no more than three times in that two-year period. Persons summoned for voir dire shall serve on any trial for which they were selected. Sec. 5. 24 V.S.A. § 1974a is amended to read: § 1974a. ENFORCEMENT OF CIVIL ORDINANCE VIOLATIONS * * * 287 THURSDAY, MAY 20, 2004 (e)(1) When filed in court as an enforcement action by the municipality, municipal parking violations shall be brought as civil violations. The right to trial by jury shall not apply in such cases. (2) A person who received a criminal conviction in district court for a municipal parking violation committed before January 1, 2005 may petition the court to seal all records in the matter. The person shall provide a copy of the petition to the state or municipal official who was the prosecuting authority on the matter in district court. The court shall grant the petition if, after providing the prosecuting authority with an opportunity to respond, the court finds that sealing the records would serve the interests of justice. Sec. 6. 1 V.S.A. § 317 is amended to read: § 317. DEFINITIONS; PUBLIC AGENCY; PUBLIC RECORDS AND DOCUMENTS * * * (c) The following public records are exempt from public inspection and copying: * * * (34) affidavits of income and assets as provided in 15 V.S.A. § 662. Sec. 7. EFFECTIVE DATE This act shall take effect on January 1, 2005. Committee on the Part of Committee on the Part of the Senate the House Sen. Richard Sears Rep. Margaret Flory Sen. John Campbell Rep. Harold Bailey Sen. Vincent Illuzzi Rep. Avis Gervais Which was considered and adopted on the part of the House. Message from the Senate No. 75 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has on its part adopted Senate concurrent resolutions of the following titles: S.C.R. 65. Senate concurrent resolution honoring Arthur J. Rock, Jr. for his service as chair and as a member of the Vermont transportation board.

JOURNAL OF THE HOUSE 288 S.C.R. 66. Senate concurrent resolution honoring Senator Gerry Gossens of Addison County for his extraordinary career in the service of his community, state and nation. S.C.R. 67. Senate concurrent resolution in memory of Essex County Deputy Sheriff Ruby A. Rainault. S.C.R. 68. Senate concurrent resolution honoring Breton Knight of Troop #332 on becoming as Eagle Scout. S.C.R. 69. Senate concurrent resolution honoring the management and staff of the State House cafeteria. The Senate has on its part adopted concurrent resolutions originating in the House of the following titles: H.C.R. 319. House concurrent resolution congratulating Stephen Miller of Troop #23 in Richmond upon earning the rank of Eagle Scout. H.C.R. 320. House concurrent resolution congratulating the Austine School for the Deaf on the occasion of the centennial anniversary of its incorporation. H.C.R. 321. House concurrent resolution congratulating Benjamin Burdet of Troop #23 in Richmond upon earning the rank of Eagle Scout. H.C.R. 322. House concurrent resolution congratulating Albert E. Trepanier of West Rutland on being awarded a Vermont Veterans Medal. H.C.R. 323. House concurrent resolution honoring Robert ”Bob” Clifford Uerz for his quarter century of service and leadership at the American Lung Association of Vermont. H.C.R. 324. House concurrent resolution honoring the exemplary work of the Foundation for Excellent Schools. H.C.R. 325. House concurrent resolution congratulating the Isle La Motte Free Public Library as it marks a century of serving readers on the westernmost Champlain island. H.C.R. 326. House concurrent resolution congratulating the Orleans Lions Club on its 50th anniversary. H.C.R. 327. House concurrent resolution congratulating Dawn Kersula R.N. on her being named the Brattleboro Memorial Hospital’s 2004 Employee of the Year. H.C.R. 328. House concurrent resolution congratulating Frances Frasca of Bellows Falls. 289 THURSDAY, MAY 20, 2004 H.C.R. 329. House concurrent resolution in memory of Alan H. Morrison. H.C.R. 330. House concurrent resolution honoring Representative Walter Freed. H.C.R. 331. House concurrent resolution congratulating the 2004 Middlebury College Panthers NCAA Division III championship women’s lacrosse team. Rules Suspended; Report of Committee of Conference Adopted H. 780 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to the insurance problems facing the agricultural industry of Vermont; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate 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. 23 V.S.A. § 941 is amended to read: § 941. INSURANCE AGAINST UNINSURED MOTORISTS (a) No policy insuring against liability arising out of the ownership, maintenance or use of any motor vehicle may be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein, or supplemental thereto, for the protection of persons insured thereunder who are legally entitled to recover damages, from owners or operators of uninsured, underinsured or hit-and-run motor vehicles, for bodily injury, sickness, or disease, including death, and for property damages resulting from the ownership, maintenance or use of such uninsured, underinsured, or hit-and-run motor vehicle. The coverage for property damages shall be sufficient to indemnify a claim for damages to which the claimant is legally entitled of no more than $10,000.00 per claim, subject to a $150.00 $250.00 deductible, unless the insured has collision or comprehensive coverage, in which case the

JOURNAL OF THE HOUSE 290 deductible shall be the greater of the insured’s collision or comprehensive deductible; provided, however, to the extent that other direct damage coverage is valid and collectible: * * * (f) For the purpose of this subchapter, a motor vehicle is underinsured to the extent that its personal injury limits of liability at the time of an accident are less than the limits of uninsured motorists coverage applicable to any injured party legally entitled to recover damages under said uninsured motorist coverage liability insurance limits applicable at the time of the accident: (1) are lower than the limits of the underinsured motorist coverage applicable to the insured; or (2) have been reduced by payments to others injured in the accident to an amount less than the limits of the underinsured motorist coverage applicable to the insured. (g) When two or more applicable policies under this subchapter promise to indemnify an insured against the same loss, no “other insurance” provisions of the policy may reduce the aggregate protection of the insured below the lesser of the actual loss suffered by the insured or the total indemnification promised by the applicable policies if there were no “other insurance” provisions. (h) Damages under this subchapter shall be recoverable under all applicable policies pro rata, notwithstanding any policy provisions to the contrary. (i) Within 30 days of receipt of a written request by a person legally entitled claiming the right to recover damages from owners or operators of motor vehicles for bodily injury, sickness, or disease, including death, or for property damages resulting from the ownership, maintenance or use of a motor vehicle, an insurer that may be liable to satisfy part or all of the claim under a policy subject to this chapter shall provide a statement, by a duly authorized agent of the insurer, setting forth the names of the insurer and insured, and the limits of liability coverage. Sec. 2. EFFECTIVE DATE This act shall take effect on October 1, 2004 and shall be incorporated into each contract of insurance which offers uninsured and underinsured motorist coverage entered into in this state on and after that date. And under rule 41, by amending the title to read as follows: AN ACT RELATING TO INSURANCE 291 THURSDAY, MAY 20, 2004 Committee on the Part of Committee on the Part of the Senate the House Sen. Matt Dunne Rep. Duncan Kilmartin Sen. Mark Macdonald Rep. Brian Dunsmore Sen. John Bloomer Rep. Norman McAllister The report of the Committee of Conference was considered and pending the question, Shall the House adopt the report of the Committee of Conference? Rep. Flory of Pittsford moved that the House not adopt the report of the Committee of Conference and request a second Committee of Conference, which was disagreed to on a Division vote. Yeas, 6. Nays, 122. Thereupon, the Committee of Conference report was adopted on the part of the House. Rules Suspended; Senate Proposal of Amendment Agreed to H. 765 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to the term “Vermont Maple; Was taken up for immediate consideration. The Senate proposes to the House to amend the bill by inserting two new sections to be numbered Secs. 3 and 4 to read as follows: Sec. 3. 6 V.S.A. § 497 is amended to read: § 497. VIOLATION A person shall not knowingly or intentionally: (1) produce, package, label, sell; (2) hold, store, transport, offer, expose, or advertise for sale; (3) possess in any premises where maple products, maple-flavored products, or artificial maple-flavored products, are sold or held, stored, offered, exposed, or advertised for sale; or (4) possess or serve in any public eating place, any maple product, maple-flavored product, or artificial maple-flavored product in violation of the provision of this chapter or any embargo or rule promulgated by the secretary under the provisions of this chapter. Sec. 4. 6 V.S.A. § 498 is amended to read: § 498. PENALTIES

JOURNAL OF THE HOUSE 292 (a) The secretary may suspend or revoke the license of a dealer or processor for any violation of this chapter or the regulations promulgated pursuant to this chapter. (b) A person, including licensed dealers or processors, who knowingly or intentionally violates any provision of this chapter shall be fined not more than $5,000.00 or imprisoned for not more than one year, or both. Which proposal of amendment was considered and concurred in. Message from the Senate No. 76 A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has considered the report of the Committee of Conference upon the disagreeing votes of the two Houses upon Senate bill of the following title: S. 311. An act relating to making miscellaneous changes in statutes affecting the Vermont Agency of Transportation. And has accepted and adopted the same on its part. The Senate has considered the reports of the Committees of Conference upon the disagreeing votes of the two Houses upon House bills of the following titles: H. 767. An act relating to capital construction state bonding and the department of corrections. H. 780. An act relating to insurance problems facing the agricultural industry of Vermont. And has accepted and adopted the same on its part. Rules Suspended; Action Ordered Messaged to Senate Forthwith and Bills Delivered to the Governor Forthwith On motion of Rep. Symington of Jericho, the rules were suspended and action on the bills were ordered messaged to the Senate forthwith and the bill delivered to the Governor forthwith. H. 35 House bill, entitled An act relating to child support, custody and visitation; 293 THURSDAY, MAY 20, 2004 H. 201 House bill, entitled An act relating to farm viability program; H. 538 House bill, entitled An act relating to trial by jury and jury service; H. 765 House bill, entitled An act relating to the term “Vermont Maple; H. 780 House bill, entitled An act relating to the insurance problems facing the agricultural industry of Vermont; Rules Suspended; Report of Committee of Conference Adopted H. 767 Pending entrance of the bill on the Calendar for notice, on motion of Rep. Symington of Jericho, the rules were suspended and House bill, entitled An act relating to capital construction, state bonding, and the Department of Corrections; Was taken up for immediate consideration. The Speaker placed before the House the following Committee of Conference report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two Houses upon the bill respectfully reports that it has met and considered the same and recommends that the Senate recede from its proposals of amendment and that the bill be amended by striking all after the enacting clause and inserting in lieu thereof the following: Sec. 1a. SHORT TITLE; CONTENTS (a) Short title. This act may be referred to as the 2004 Capital Construction Bill or the 2004 Capital Construction Act.

JOURNAL OF THE HOUSE 294 (b) Contents of act. The general assembly authorizes the legislative council to prepare and insert in this subsection a table of contents prior to presenting this act to the governor for signature. * * * Capital Appropriations * * * Sec. 1b. STATE BUILDINGS The sum of $11,015,000 is appropriated to the department of buildings and general services, and the commissioner is authorized to direct funds appropriated in this section to the projects contained in this section; however, no project shall be canceled unless the chairs of the house and senate committees on institutions are notified before that action is taken. The individual appropriations in this section are estimates only. (1) Burlington, Cherry Street garages, repairs, Phase II: (700,000) (2) Montpelier, 133 State Street, renovations, Phase II: (3,900,000) (3) Statewide, major maintenance: (4,625,000) (4) Statewide, Americans with Disabilities Act, accessibility to public buildings: (200,000) (5) Statewide, contingency fund: (500,000) (6) Statewide, building reuse: (100,000) (7) Statewide, planning: (25,000) (8) Statewide, energy retrofits, including replacement of windows and installation of energy measuring devices, pursuant to Sec. 29 of this act: (800,000) (9) Statewide, consolidated office/archival space, study: (15,000) (10) Statewide, downtown redevelopment funds for pre-planning and development of sprinkler systems, life safety and accessibility improvements, and façade renovations for public spaces within public and privately-owned buildings: (50,000) (11) Statewide, State House, first floor restoration of committee rooms; phase III: (100,000) (Total appropriation – Section 1b $ 11,015,000) Sec. 2. TAXES The sum of $150,000 is appropriated to the department of taxes for digital orthophotographic quadrangle mapping. 295 THURSDAY, MAY 20, 2004 (Total appropriation – Section 2 $ 150,000) Sec. 3. HUMAN SERVICES (a) Vermont state hospital. (1) The sum of $550,000 is appropriated to the department of buildings and general services for the agency of human services for the Vermont state hospital, to address urgent needs on an expedited basis. The commissioner of buildings and general services is authorized to select an architect and contractor of his or her choosing to perform the work outlined in this subdivision, including the following: (A) To create two specialized acute stabilization units, one each to be attached to the Brooks 1 Unit and the Brooks 2 Unit. (B) To soundproof four existing seclusion rooms. (2) Upon completion of the specialized units required by subdivision (1) of this subsection, and to the extent funding is available from the appropriations made in this subsection, the commissioner of buildings and general services, in consultation with the commissioner of developmental and mental health services and the staff of the Vermont state hospital, shall use existing space to create a “quiet room” on both the Brooks 1 and the Brooks 2 Units to be used as an alternative to the existing seclusion rooms. (b) The sum of $150,000 is appropriated to the department of buildings and general services for the agency of human services, department of corrections, for modification of existing space to be used as a secure mental health unit and a secure medical unit for women incarcerated in the Dale II facility. (c) The sum of $485,000 is appropriated to the Vermont Economic Development Authority for the North Country Hospital in Newport to assist with the creation of a nine-station hemodialysis center within the hospital. The North Country Hospital shall repay to the state the total amount appropriated in this subsection, without interest, in 20 equal annual payments commencing one year after the funds are received. Notwithstanding any provision of law to the contrary, the Vermont Economic Development Authority is authorized to prepare and to execute on behalf of the state any documents necessary to make and secure this loan. No portion of this appropriation shall be disbursed until evidence is provided to the executive director of the Vermont Economic Development Authority that sufficient additional federal, community, or other nonstate funds are available for the completion of this project and that a certificate of need has been obtained from the department of banking, insurance, securities, and health care administration. (Total appropriation – Section 3 $1,185,000)

JOURNAL OF THE HOUSE 296 Sec. 4. JUDICIARY The sum of $4,420,000 is appropriated to the department of buildings and general services for the judiciary to complete construction of the Rutland courthouse. (Total appropriation – Section 4 $4,420,000) Sec. 5. COMMERCE AND COMMUNITY DEVELOPMENT (a) The sum of $125,000 is appropriated to the department of buildings and general services for the agency of commerce and community development for major maintenance at historic sites statewide; provided such maintenance shall be under the supervision of the department of buildings and general services. (b) The following sums are appropriated to the agency of commerce and community development, division for historic preservation, for: (1) Historic preservation grants: 150,000 (2) Historic barns and agricultural buildings grants: 90,000 (c) The sum of $25,000 is appropriated to the agency of commerce and community development for underwater preserves. (d) The sum of $ 10,000 is appropriated to the agency of commerce and community development for the unmarked burials fund established in Sec. 57 of No. 149 of the Acts of the 2001 Adj. Sess. (2002). (e) The sum of $78,000 is appropriated to the department of buildings and general services for the agency of commerce and community development as the state match for a federal transportation enhancement grant to construct a visitor/education center at the Justin Morrill homestead in Strafford; provided that no portion of this appropriation shall be disbursed until evidence is provided to the department that the federal funds have been awarded. The agency is authorized to use sums appropriated in Sec. 4(a)(3) of No. 63 of the Acts of 2003 for aspects of the Justin Morrill project for which enhancement grants are not available. (f) The sum of $100,000 is appropriated to the department of buildings and general services for the agency of commerce and community development as the state match for a federal Save America’s Treasures grant for installation of a sprinkler system at the Calvin Coolidge homestead in Plymouth Notch; provided that no portion of this appropriation shall be disbursed until evidence is provided to the department that the federal funds have been awarded. (g) The sum of $40,000 is appropriated to the department of buildings and general services for the Lake Champlain Walleye Association, Inc. to assist with 297 THURSDAY, MAY 20, 2004 building a pond for the purpose of raising walleye fry to fingerlings; provided that no part of this appropriation shall be used to pay salaries. On or before January 15, 2005, the association shall file a written report with the house and senate committees on institutions detailing the manner in which this appropriation has been expended. T he department of fish and wildlife shall provide the same committees with a report on the prime bodies of water for walleye restoration, including an evaluation of the feasibility of Pauline, Amherst, Rescue, and Echo Lakes in the towns of Plymouth and Ludlow for such restoration. (h) The sum of $12,500 is appropriated to the department of buildings and general services for Lake Champlain International, Inc. for marketing; provided that no part of this appropriation shall be used to pay salaries. On or before January 15, 2005, Lake Champlain International, Inc. shall file a written report with the house and senate committees on institutions detailing the manner in which this appropriation has been expended. (i) The sum of $22,500 is appropriated to the department of buildings and general services for the Vermont Outdoor Guide Association, for statewide outdoor recreational and nature-based tourism opportunities; provided that no part of this appropriation shall be used to pay salaries. On or before January 15, 2005, the association shall file a written report with the house and senate committees on institutions detailing the manner in which this appropriation has been expended. (j) The sum of $50,000 is appropriated to the department of buildings and general services for the agency of commerce and community development for continuing restoration of the Kent Tavern in Calais. (k) The sum of $50,000 is appropriated to the agency of commerce and community development, division for historic preservation, for the cultural facilities competitive grant program, to be administered by the Vermont Arts Council and made available on a one - for-one matching basis with funds raised from nonstate sources; no such grant shall be available for a project receiving funding from any other appropriation of this act. No portion of this appropriation shall be used to pay salaries. The appropriation shall be awarded on a competitive basis. In recommending grant awards, a review panel shall give priority consideration to applicants who demonstrate greater financial need or are in underserved areas of the state. (l) The sum of $30,000.00 is appropriated to the department of buildings and general services for the Vermont state housing authority (“VSHA”) for the Housing Foundation, Inc. (“HFI”) to renovate space in the Colodny Building in

JOURNAL OF THE HOUSE 298 White River Junction, owned by HFI and managed by VSHA, to provide greater access to elderly residents and to renovate underutilized space. (m) The following sums are appropriated for the purpose of promoting wildlife ecotourism in the state: (1) The sum of $25,000 is appropriated to the agency of natural resources, department of fish and wildlife, to assist with the development of wildlife viewing opportunities on state-owned lands. (2) The sum of $25,000 is appropriated to the department of buildings and general services for Audubon Vermont, a state program of the National Audubon Society, to assist with improvements to the Green Mountain Audubon Center. On or before January 15, 2005, Audubon Vermont shall file a written report with the house and senate committees on institutions detailing the manner in which this appropriation has been expended. (n) The sum of $125,000 is appropriated to the property assessment fund to carry out the purposes of Sec. 49 of this act; provided that, of this appropriation, the sum of $50,000 is appropriated to the department of buildings and general services for the Windsor Improvement Corporation to assist with planning and development in connection with the Rails to Rivers Project, which project may include purchase of the Cone Blanchard property and the economic development of surrounding parcels. (o) Broadband development; competitive program. (1) The sum of $200,000 is appropriated to the agency of commerce and community development to award up to five grants of up to $50,000 each to broadband projects as required by this subsection, competitively selected by a committee comprised of the secretary of commerce and community development, the commissioner of information and innovation, the commissioner of buildings and general services, or their designees, and the executive directors of the Vermont Sustainable Jobs Fund, the Vermont Council on Rural Development, and the Vermont Broadband Council, or their designees. (2) The committee shall select up to five communities to develop and implement broadband demonstration projects from among those communities that do not currently have, are not likely to be able to financially afford, and are not otherwise expected to receive this service. The communities selected shall represent different regions of the state and at least one of the selected communities shall be in rural Rutland County and one in the Northeast Kingdom. Administrative support shall be provided by the agency of 299 THURSDAY, MAY 20, 2004 commerce and community affairs. The committee shall strive to select projects in communities that: (A) Include a designated downtown, new town center, or village center within the proposed service area. (B) Offer private sector partnership possibilities. (C) Have no or limited access to broadband services. (3) Each selected project shall strive to: (A) Provide broadband service to the last mile of the municipality and offer access to service to every member of that municipality. (B) Provide a minimum of five years of service. (C) Offer a maximum price for the original service provided under the contract, which shall remain fixed for the duration of the contract. (D) Have a speed of delivery which shall be at least two megabits per second. (4) The selection of a provider shall be made by the municipality with technical assistance from the Vermont Broadband Council based on the following competitive issues: (A) Price per connection. (B) Ownership of the infrastructure by the municipality at the termination of the contract. (C) Number of people served and population density of the area served. (D) Innovative solutions for providing this service to areas determined not to be economical. (E) Cost to the consumer of any new construction, equipment, or facility required for the connection. (5) The department of information and innovation shall make available to communities. To the extent permitted by contract, the services and prices available to the state. (p) The sum of $500,000.00 is appropriated to the Vermont hydroelectric power authority (“VHPA”), and the board of directors or manager of the VHPA is authorized to direct funds appropriated in this section to activities supporting the purposes for which the VHPA is created. Additional funds maybe appropriated, contingent on emergency board approval, for use by the VHPA. Any funds appropriated and not expended in the current fiscal year

JOURNAL OF THE HOUSE 300 shall carry over into the succeeding fiscal year. If the VHPA is not established in the 2004 legislative session, this appropriation shall be subject to reallocation by the general assembly in a future capital appropriations act. (Total appropriation – Section 5 $1,658,000) Sec. 6. EDUCATION (a) The sum of $4,000,000 is appropriated to the department of education for state aid for school construction projects pursuant to section 3448 of Title 16; of the amount appropriated in this subsection, the department of education may use up to $40,000 to contract with the School Energy Management Program of the Vermont Superintendents Association to assist the department with the administration of energy-related school construction projects. (b) The sum of $750,000 is appropriated to the department of buildings and general services for the Brattleboro Union High School District #6 for the Windham Regional Career Center (Southeastern Vermont Career Education Center). (c) The sum of $375,000 is appropriated to the department of buildings and general services for the Austine School for ongoing renovations to Holton Hall. (d) The sum of $400,000 is appropriated to the department of education for regional technical education centers and comprehensive high schools to assist with the purchase of educational program equipment, to be distributed in equal amounts to each center and high school with no local matching funds required. (Total appropriation – Section 6 $5,525,000) Sec. 7. UNIVERSITY OF VERMONT The sum of $2,600,000 is appropriated to the department of buildings and general services for the University of Vermont for the second phase of funding for replacement of space in the Joseph E. Hills Agricultural Science Building. (Total appropriation – Section 7 $2,600,000) Sec. 8. VERMONT STATE COLLEGES (a) The sum of $943,547.65 is appropriated to the department of buildings and general services for the Vermont state colleges for major facility maintenance. (b) Of the sum appropriated in subsection (a) of this section, up to $20,000 may be used by the Vermont State Colleges to begin preliminary siting, sizing, design, and engineering of a combined heating and power plant for the Johnson 301 THURSDAY, MAY 20, 2004 State College campus and, if feasible, to serve portions of the surrounding community through a district heating model. In undertaking this work, the Vermont State Colleges may contract with the Biomass Energy Resource Center and shall consult with the Town of Johnson. The Vermont State Colleges shall provide a progress report to the house and senate committees on institutions on or before January 15, 2005. (Total appropriation – Section 8 $943,547.65) Sec. 9. ELECTRONIC DOCUMENT STORAGE; PILOT PROJECT (a) In consultation with the commissioner of information and innovation, the state archivist, municipal clerks, and the Vermont League of Cities and Towns, the commissioner of buildings and general services shall develop and implement a pilot project designed to create a coordinated municipal filing system appropriate to the needs of all Vermont municipalities, regardless of the municipality’s volume of land transactions. The pilot project shall include the conversion of paper documents to electronic format, which conversion shall be designed to ensure compatibility with any state electronic document storage system that may be developed in the future. The electronic version of documents created under the pilot project shall be excluded from the definition of “public record” or “public document” in 1 V.S.A. § 317(b) until the general assembly amends the section to address the new format. The project shall include protocols to protect against the disclosure of personal identifying information, such as Social Security numbers. (b) The commissioner of buildings and general services, in consultation with the state archivist, shall select up to four municipalities to participate with the Town of Colchester in the pilot project. In choosing the other participants, consideration shall be given to actual office workflow, public access and other legal issues, and existing municipal record retention schedules; they shall be chosen to represent high and low levels of recording activity from different regions of the state. (c) The commissioner of buildings and general services, in consultation with the state archivist, shall arrange for the state to provide temporary paper document storage for the municipalities selected to participate in the pilot project. (d) A committee comprised of the state archivist, the commissioner of buildings and general services, and four members to be selected by the commissioner upon receiving nominations from the Vermont League of Cities and Towns, the Vermont Town and City Management Association, and the Vermont Municipal Clerks and Treasurers Association, i s created to monitor and evaluate implementation of the pilot project and to recommend any

JOURNAL OF THE HOUSE 302 necessary or advisable statutory changes. The commissioner of buildings and general services, or the commissioner’s designee, shall be the chair. The first meeting shall be convened on or before July 2, 2004. (e) On or before January 15, 2005, the committee created in subsection (d) of this section shall submit to the senate committee on government operations, the house committee on local government, and the house and senate committees on institutions a written report regarding implementation of the pilot project and recommendations, in the form of draft legislation, for statewide implementation of a coordinated municipal filing system. The report shall include, to the extent possible, detailed cost estimates for statewide implementation. (f) The sum of $50,000 is appropriated to the department of buildings and general services for the purposes set forth in this section, including p reparation of surveys, performance of preliminary research, preparation of specifications related to scanning, preparation of a report, and purchase of necessary computer hardware and document management software. (Total appropriation – Section 9 $50,000) Sec. 10. NATURAL RESOURCES (a) The sum of $6,653,660 is appropriated to the agency of natural resources for water pollution grants and the state match for the pollution control and public drinking water supply program state revolving fund loans, all in accordance with chapter 55 of Title 10 and chapter 120 of Title 24; provided that $50,000 of this appropriation shall be used to pay a portion of the unanticipated costs incurred by the Village of Barton in connection with its wastewater treatment plant; and further provided that up to $120,000 of this appropriation may be used to fund the completion and implementation of total maximum daily loads (TMDLs) and water quality remediation plans required by subdivision 1264(f)(3) of Title 10 for the stormwater impaired waters of the state. (b) The sum of $1,250,000 is appropriated to the agency of natural resources for the clean and clear program, including the construction of phosphorus treatment facilities to serve Richford, Troy, and Jay and the acquisition and restoration of wetlands in the Champlain Valley. (c) The sum of $300,000 is appropriated to the agency of natural resources for maintenance, repair, and reconstruction of state-owned dams. (d) The sum of $100,000 is appropriated to the agency of natural resources for the department of forests, parks and recreation to hire one or more consultants, as needed, to conduct an objective review of assessments 303 THURSDAY, MAY 20, 2004 (“Assessments”) performed by or for the U.S. Forest Service in connection with revising the forest plan for the Green Mountain National Forest, as follows: (1) The agency shall select and contract with any consultant authorized by this subsection pursuant to existing state bidding and contracting practices. (2) The consultant or consultants may review the following Assessments: (A) Socio-Economic Assessment. (B) GIS Biodiversity Assessment. (C) Species Viability Evaluation. (D) Roadless Area Inventory and Wilderness Evaluation, and the related Roads Analysis Process. (E) Any other Assessment as determined by the agency. (3) The reviews authorized by subdivision (2) of this subsection shall be conducted to ensure that the reviewed Assessments: (A) Are comprehensive; and (B) Represent the myriad interests of the citizens of the state, including recreation, management of timber resources, the forest products industry, wildlife management and habitats, conservation, ecological concerns, and public use and access. (4) The reviews authorized by subdivision (2) of this subsection may be relied upon by the agency to participate in the federal revision process, including the preparation and presentation of a proposed alternative Revised Forest Plan for the Green Mountain National Forest representing the interests of the citizens of the state, including those listed in subdivision (3)(B) of this subsection. (5) The reviews authorized by subdivision (2) of this subsection shall be available to the public on the department’s website and by request, pursuant to the existing state long range management planning process. (6) Nothing in this subsection shall be construed to limit the agency’s authority to use existing state resources to review the Assessments. (7) On or before January 15, 2005, the agency shall file a written report with the house and senate committees on institutions and on natural resources and energy and with the house committee on fish, wildlife, and water resources detailing its activities and recommendations, if any, in connection with this subsection.

JOURNAL OF THE HOUSE 304 (e) The sum of $300,000 is appropriated to the agency of natural resources, department of forests, parks and recreation for major maintenance and for construction of one- and two-room cabins at state parks and recreation areas; provided that no more than $80,000 of this appropriation shall be used in connection with the cabins and that no more than 23 cabins shall be constructed; and further provided that Sec. 8(a)(4) of No. 149 of the Acts of the 2001 Adj. Sess. (2002) is amended by striking the following: “; provided this appropriation shall constitute a 50/50 match with federal Land and Water Conservation Fund appropriations; provided construction costs shall not exceed $15,000 per cabin; and provided the department shall actively pursue a proposal to enter into an agreement with the St. Johnsbury Academy to construct the cabins”. (f) The sum of $75,000 is appropriated to the agency of natural resources for the Green Mountain Club, Inc. for the procurement, in fee simple or by easement, of properties along the Long Trail. (g) The sum of $250,000 is appropriated to the agency of natural resources for the department of fish and wildlife for continued foundation and exterior construction of a dining hall and education center at the Kehoe conservation camp in Castleton. (h) The sum of $250,000 is appropriated to the agency of natural resources for the department of fish and wildlife for emergency repairs at the Ed Weed fish culture station ; provided that these repairs shall be directed by the department of buildings and general services. (i) The sum of $15,000 is appropriated to the agency of natural resources for the Catamount Trail Association for the procurement of easements along the Catamount Trail. (j) The sum of $40,000 is appropriated to the agency of natural resources, department of fish and wildlife, for the Ruffed Grouse Society to continue the process of implementing management plans for the state’s wildlife management areas in cooperation with the department of fish and wildlife. On or before January 15, 2005, the society shall file a written report with the house and senate committees on institutions detailing the manner in which this appropriation has been expended. (k) The sum of $35,000 is appropriated as a one-time appropriation to the agency of natural resources, department of forests, parks and recreation for road construction supervision and timber stand improvement. (l) The following sums are appropriated as a one-time appropriation to the agency of natural resources for the department of fish and wildlife for: 305 THURSDAY, MAY 20, 2004 (1) Consulting forester services necessary to expedite timber harvesting and habitat management in the state’s wildlife management areas: 15,000 (2) Creation and enhancement of early successional herbaceous openings for wildlife: 25,000 (m) The sum of $5,000 is appropriated to the agency of natural resources for the department of fish and wildlife for the purpose of providing the signs required by Sec. 67 of this act. (n) Curtis Pond. (1) The state of Vermont through the department of forests, parks and recreation owns property on the southern end of Curtis Pond in the town of Calais which is used for recreational boating access to the pond. (2) Serious deterioration of an existing, historic dam located on Curtis Pond poses an imminent and significant hazard to properties adjacent to and downstream of the pond. (3) The sum of $20,000 is appropriated to the department of buildings and general services for the town of Calais as the state’s contribution toward the stabilization of the existing dam on Curtis Pond by extending the outflow pipe and backfilling with rip-rap or the construction of a new dam. (o) The sum of $15,000 is appropriated to the agency of natural resources for the Town of St. Albans to conduct an engineering study, to include biddable plans, in connection with improvements to and the expansion of the town pier and full-service public marina, the so-called “State Dock.” (p) The sum of $25,000 is appropriated to the agency of natural resources, department of fish and wildlife, to conduct ecological assessments, including wildlife surveys, of state lands. On or before January 15, 2005, the agency shall report its findings and recommendations to the house and senate committees on institutions. (q) The sum of $25,000 is appropriated to the agency of natural resources, department of fish and wildlife, to help with species recovery planning for threatened and endangered species on state lands. On or before January 15, 2005, the agency shall report its findings and recommendations to the house and senate committees on institutions. (Total appropriation – Section 10 $9,398,660)

JOURNAL OF THE HOUSE 306 Sec. 11. MILITARY (a) The sum of $100,000 is appropriated to the department of the military to address life safety issues at Camp Johnson and other maintenance projects identified by the department. (b) The sum of $20,000 is appropriated to the department of buildings and general services for the Fairbanks Museum and Planetarium as trustee, for the creation of a civil war monument in Fredericksburg, Virginia to be constructed of Vermont stone, including marble, slate, granite, or any combination of the three, to honor Vermonters who fought in the Battle of the Wilderness on May 5 and 6, 1864. (c) The sum of $20,000 is appropriated to the department of buildings and general services for the Navy League of the United States Green Mountain Council for the creation of a Lake Champlain Navy Memorial to be located at the former navy reserve center in Burlington. (Total appropriation – Section 11 $140,000) Sec. 12. VERMONT HISTORICAL SOCIETY The sum of $250,000 is appropriated to the Vermont historical society for continuing renovation of the Pavilion Building in Montpelier and of the former Spaulding Graded School in Barre to become an education and research center known as the Vermont History Center. (Total appropriation – Section 12 $250,000) Sec. 13. PUBLIC SAFETY (a) The sum of $500,000 is appropriated to the department of buildings and general services for the department of public safety to finalize construction and fit-up of a new state police station in Addison County to replace the station currently located in Middlebury. (b) The sum of $225,000 is appropriated to the department of buildings and general services for the department of public safety to purchase real property on which to locate a new state police station to replace the existing St. Albans Field Station. (c) The sum of $600,000 is appropriated to the department of buildings and general services for the department of public safety to design, engineer, construct, and fit up a new state police station to replace the existing Bethel Field Station to be named the “Royalton State Police Station”; provided that it shall be located on the same site as the existing facility; and further provided that the new station shall be designed and constructed, to the extent feasible, using plans from the Vermont state police station buildings in Derby and New 307 THURSDAY, MAY 20, 2004 Haven; and further provided that the new station shall include adequate space for the law enforcement division of the department of fish and wildlife that services the area and conference space for local firefighters, emergency rescue services, and not-for-profit and community organizations. (Total appropriation – Section 13 $1,325,000) Sec.14. CRIMINAL JUSTICE AND FIRE SERVICE TRAINING COUNCILS (a) The sum of $20,000 is appropriated to the department of buildings and general services for the Vermont criminal justice training council in Pittsford for miscellaneous repairs to facility and grounds. (b) The sum of $350,000 is appropriated to the department of buildings and general services for the Vermont fire service training council in Pittsford for the following: (1) Purchase of seven firefighter I and II program equipment trailers. (2) Purchase of two trailer transport vehicles. (3) Improvements to cold storage warehouse. (4) Purchase of liquid propane gas fire training trailer. (5) Purchase of hydraulic rescue tool set. (6) Purchase of ten sets of structural firefighter gear (including hoods, gloves, boots, helmets, and suspenders). (7) Purchase of one fire prop dumpster. (8) Purchase of spare SCBA tanks. (9) Purchase of two automatic external defibrillators. (Total appropriation – Section 14 $370,000) Sec. 15. AGRICULTURE, FOOD AND MARKETS The sum of $900,000 is appropriated to the agency of agriculture, food and markets, best management practice implementation cost share program, for agricultural nonpoint source pollution reduction. Farmers participating in this program may receive a maximum of 50 percent of state aid when no federal dollars are available. (Total appropriation – Section 15 $900,000)

JOURNAL OF THE HOUSE 308 Sec. 16. VERMONT RURAL FIRE PROTECTION The sum of $75,000 is appropriated to the department of buildings and general services for the Vermont rural fire protection task force to continue the dry hydrant program. (Total appropriation – Section 16 $75,000) Sec. 17. RECREATIONAL AND EDUCATIONAL FACILITIES The sum of $300,000 is appropriated to the department of buildings and general services for the recreational and educational facilities grant program to provide competitive grants to municipalities and nonprofit organizations to stimulate the creation and development of recreational and educational opportunities for community youth. (Total appropriation – Section 17 $300,000) Sec. 18. VERMONT PUBLIC TELEVISION The sum of $225,000 is appropriated to the department of buildings and general services for Vermont Public Television for the federally-mandated conversion of its transmission sites to digital broadcasting format. (Total appropriation – Section 18 $225,000) * * * Financing this Act * * * Sec. 19. REALLOCATION OF FUNDS (a) Of the amount appropriated to the department of buildings and general services in Sec. 1(a)(2) of No. 62 of the Acts of 1995 (city-state master plan), the sum of $10,001.13 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (b) Of the amount appropriated to the department of buildings and general services for the judiciary in Sec. 7(b) of No. 29 of the Acts of 1999 (Guildhall courthouse), the sum of $615.71 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (c) Of the amount appropriated to the department of buildings and general services in Sec. 1(b) of No. 148 of the Acts of the 1999 Adj. Sess. (2000) (Montpelier parking structure), the sum of $261,422.82 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (d) Of the amount appropriated to the department of buildings and general services in Sec. 1(f) of No. 148 of the Acts of the 1999 Adj. Sess. (2000) (State House, interactive television), the sum of $14,205.34 is reallocated to the 309 THURSDAY, MAY 20, 2004 department of buildings and general services to defray expenditures authorized by this act. (e) Of the amount appropriated to the department of buildings and general services for the judiciary in Sec. 4(a)(4)(B) of No. 148 of the Acts of the 1999 Adj. Sess. (2000) (Caledonia courthouse), the sum of $37,312.00 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (f) Of the amount appropriated to the department of buildings and general services in Sec. 4(d) of No. 63 of the Acts of 2003 (illumination of Bennington Battle monument), the sum of $6,900.00 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (g) Of the amount appropriated to the department of buildings and general services in Sec. 13(c) of No. 63 of the Acts of 2003 (update master plan for Vermont criminal justice and fire service training councils), the sum of $49,750.65 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (h) Of the amount appropriated in Sec. 14(a) of No. 63 of the Acts of 2003 (best management implementation cost share program for agricultural nonpoint source pollution reduction), the sum of $150,000 is reallocated to the department of buildings and general services to defray expenditures authorized by this act. (i) The funds reallocated this section shall be used to defray the expenditures authorized in Sec. 1b of this act. (Total reallocation– Section 19 $530,207.65) Sec. 20. GENERAL OBLIGATION BONDS The state treasurer is authorized to issue general obligation bonds in the amount of $40,000,000 for the purpose of funding the appropriations of this act. The state treasurer, with the approval of the governor, shall determine the appropriate form and maturity of the bonds authorized by this section consistent with the underlying nature of the appropriation to be funded. The state treasurer shall allocate the estimated cost of bond issuance, or issuances, to the entities to which funds are appropriated pursuant to this section and for which bonding is required as the source of funds, pursuant to 32 V.S.A. § 954. (Total bonding – Section 20 $40,000,000) * * * Managing this Act * * * Sec. 21. REALLOCATION; TRANSFER OF FUNDS

JOURNAL OF THE HOUSE 310 (a) Historic Sites. The commissioner of buildings and general services may reallocate the funds in Sec. 5(a) of this act (commerce and community development) to other state historic sites only for major maintenance, should a more pressing need arise following the legislative session. (b) Natural resources. The secretary of natural resources, with the approval of the secretary of administration, may transfer any unexpended project balances between projects authorized in Sec. 10(a), (c), and (g) of this act (natural resources). (c) State parks and recreation areas. The commissioner of buildings and general services, with the approval of the secretary of administration, may use funds appropriated in Sec. 1b(3) of this act (major maintenance) for state parks and recreation areas, and for municipally-owned historical parks. (d) Clean and clear program; agriculture. The secretary of agriculture, food and markets with the approval of the commissioner of buildings and general services, may transfer funds from previous capital appropriations made for the best management practice implementation cost share program in 2003, up to a total of $300,000 to provide grants for alternative manure management technology development under the state’s clean and clear program. The agency may provide these grants to systems demonstrating alternative management technologies provided that the components of those systems, regardless of whether they are included in the NRCS national handbook of conservation practices, are designed by a licensed engineer. (e) The commissioner of buildings and general services is authorized to expend from appropriations made in this capital bill or in previously authorized capital bills up to $60,000 for the purposes of developing a test site for a biomass-fueled cogeneration system. The demonstration site is to be on property owned by the State of Vermont at the Northeast Regional Correctional Facility. The authorized funds may be transferred in part or in whole to the Biomass Energy Resource Council (BERC) for purposes of fulfilling its grant obligations in connection with this project. (f) Notwithstanding provisions of 10 V.S.A. § 1628 to the contrary, the agency of natural resources may use unallocated funds from past capital appropriations to the water supply grant funding program under 10 V.S.A. Chapter 55, together with up to $60,000 of the amount provided in section 10(a) of this act, to provide grants to municipalities designated by the secretary to receive up to 100% of the installation cost of powdered activated carbon systems to remove TFM. 311 THURSDAY, MAY 20, 2004 Sec. 22. ACCEPTANCE OF GRANTS AND OTHER FUNDS (a) Notwithstanding section 5 of Title 32 (acceptance of grants): (1) The commissioner of environmental conservation, with the approval of the secretary of natural resources, may accept federal grants made available through the federal Clean Water Act and the federal Drinking Water Act in accordance with chapter 120 of Title 24. Acceptance of this grant money is hereby approved, provided all notifications are made under subsection 4760(a) of Title 24. (2) The commissioner of corrections, with the approval of the secretary of human services, may accept federal grants made available through federal crime bill legislation. (3) The commissioner of buildings and general services may accept grants of funds, equipment, and services for the installation, operation, implementation, or maintenance of energy conservation measures or improvements at state buildings. (4) The commissioner of buildings and general services may accept private donations to defray costs of providing an islands center for the arts at Knight Point state park in North Hero. (5) The commissioner of buildings and general services is authorized to accept federal funds that may come to the state for purposes of designing a new emergency management facility and emergency operations center. The department of buildings and general services shall be responsible for overseeing all elements of the design and construction of any new emergency management facility; provided, however, that prior to construction, the commissioner shall present the proposed location and final design and construction plans to the general assembly for review and approval. (b) Each receipt of a grant or gift authorized by this section shall be reported by the commissioner of the department receiving the funds to the chairs of the house and senate committees on institutions and to the joint fiscal committee. * * * Buildings and General Services; State Buildings * * * Sec. 23. PROJECTS FUNDED IN PRIOR YEARS The commissioner of buildings and general services is authorized to use funds appropriated under this act for capital projects requiring additional support that were funded with capital or general appropriations made in prior years. Sec. 24. TRANSFER OF POSITION

JOURNAL OF THE HOUSE 312 One permanent, classified “environmental analyst II AC: general” position shall be transferred from the department of environmental conservation to the department of buildings and general services. Sec. 25. 29 V.S.A. § 821(a)(8) is added to read: (8) “McFarland State Office Building” shall be the name of the state office building at Five Perry Street in Barre. Sec. 26. PROPERTY TRANSACTIONS (a) Site purchase; St. Albans. The commissioner of buildings and general services is authorized to purchase, for no more than $225,000.00, an 11.27± acre parcel in the town of St. Albans located approximately one (1) mile north of the exit 19 interchange on Vermont interstate route 89 and approximately one-quarter mile north of the intersection of state routes 104 and 36 and on the easterly side of route 104, currently owned by the Estate of D. Francis Howrigan, David Read, Richard Read, Frank Read, and Alberta Reed, for the construction of a new public safety facility. (b) National Life Insurance Company; Montpelier. The commissioner of buildings and general services may acquire an option to purchase a portion of the National Life land and realty located on National Life Drive in the city of Montpelier, which option shall not include the right to purchase any open land for development by the state. It is the intent of the General Assembly to relocate the agency of transportation to a new, single state-owned complex adjacent to 133 State Street unless the state acquires the National Life property, in which case the agency shall be located there. Upon acquiring an option, the state will work with the city of Montpelier to address lost property tax revenue and other potential economic impacts. (c) Gosse Court state armory; Burlington. Notwithstanding any provision of law to the contrary, the commissioner of buildings and general services shall investigate whether the Gosse Court state armory in the city of Burlington is suitable for use for the operations of state government if the Vermont national guard should determine that the property is unnecessary for its purposes. On or before January 15, 2005, the commissioner shall file a written report, including recommendations, with the house and senate committees on institutions. Sec. 27. 29 V.S.A. § 152(a)(27) and (28) are added to read: (27) After consulting with the state treasurer to determine the effect of the contract on the state’s debt and with the approval of the emergency board, enter into multiyear contracts with energy service companies for energy efficiency and fuel switching improvements to state facilities, the cost of which 313 THURSDAY, MAY 20, 2004 will be recovered through the avoided fuel, utility, operating, and maintenance costs resulting from the improvements. Improvements must within 20 years achieve savings sufficient to cover their costs. The commissioner shall report annually to the house and senate committees on institutions regarding the status of contracts undertaken under this subsection. (28) With the approval of the emergency board, enter into performance contracts with private sector providers to create energy - smart state buildings and facilities primarily through revised operating strategies that will result in operating cost savings. The commissioner shall work with private energy contractors and utilities companies to develop a plan to conduct energy audits, analyze the state’s energy needs, improve purchasing procedures to speed the conversion to new technology, and develop revised operating strategies to identify the best use of the latest energy-saving technology. The commissioner shall report annually to the house and senate committees on institutions regarding the status of contracts undertaken under this section. Sec. 28. STATE HOUSE EXPANSION The commissioner of buildings and general services is authorized to use funds previously appropriated in connection with the State House expansion project to prepare schematic design, design development, and construction documents for an addition to the State House, provided that design of such addition shall not extend beyond the east elevation and façade and shall not include expansion to the west of the State House. Nothing in this section, however, shall preclude the sizing of infrastructure to accommodate future additions. Sec. 29. ENERGY RETROFITS (a) The department of buildings and general services plans to rehabilitate approximately 2,875 windows in the Waterbury state office complex, which is listed on the national and state historic registers. (b) In preparation for this work, the commissioner of buildings and general services shall develop not less than three proposals for its completion, each of which is prepared in accordance with the U.S. Secretary of Interior’s standards for rehabilitation of historic buildings and seeks to address the following: (1) Consideration of the state’s limited bonding capacity; provided, however, that any funding proposals may be adjusted by the rate of inflation. (2) Enhancement of energy efficiency. (3) Creation of efficiencies in long - term maintenance.

JOURNAL OF THE HOUSE 314 (4) Promotion of simplicity, safety, and ease in custodial care and cleaning. (5) Consideration of aesthetic concerns. (6) Increase in the ease of occupant operational use. (c) The Vermont advisory council on historic preservation and the division for historic preservation shall review the options developed by the commissioner under subsection (b) of this section and shall work with the commissioner to determine which option is most supportive of the goals set forth in that subsection. (d) After formulation of the options required by subsection (b) of this section, but prior to final selection of one pursuant to subsection (c), the commissioner shall request a jurisdictional opinion under 10 V.S.A. chapter 151 (“Act 250”). If Act 250 jurisdiction is found to attach, the selection of an option under subsection (c) of this section shall constitute the presumption that both the council and the division support the project under 10 V.S.A. § 6086(a) (8). (e) The commissioner shall report on the status of this project to the house and senate committees on institutions on or before January 15, 2005. Sec. 30. PUBLIC ACCESS AREA ON LONG POND; WESTMORE (a) The state of Vermont, through the department of forests, parks and recreation, owns property on Long Lake in the town of Westmore that is used as public access for boating. (b) The public access area on Long Pond shall be known as “The Howard E. Taylor Public Access Area.” The department shall erect a sign to this effect at the access area. Sec. 31. 29 V.S.A. § 152(a)(29) is added to read: (29) When purchasing land for new state highway garages and other transportation buildings, as well as other state buildings on major highways in the state, the commissioner, in consultation with the secretary of transportation, shall consider purchasing additional land suitable for park-and-ride facilities. Sec. 32. ELECTRONIC WASTE MANAGEMENT; STUDY AND RECOMMENDATIONS (a) In January 2004, the agency of natural resources submitted a report to the general assembly, entitled “Electronic Waste Management in Vermont.” Although the report discusses environmental concerns regarding the rapid growth of the electronic waste stream and acknowledges state and national 315 THURSDAY, MAY 20, 2004 initiatives to address this problem, it fails to recommend a comprehensive strategy to be adopted the state. (b) On or before January 15, 2005, the commissioner of buildings and general services, in consultation with the secretary of natural resources, shall file a report with the house and senate committees on institutions recommending legislative, regulatory, or other action to create a comprehensive strategy for the purchasing, collection, recovery, recycling, and disposal of computer electronic equipment waste by the state of Vermont. The recommendations shall include proposed solutions addressing any potential concerns or impediments to those efforts. Sec. 33. CAPITOL COMPLEX LONG-TERM THERMAL ENERGY PLANNING (a) The general assembly finds: (1) The Capitol Complex heating load currently exceeds the capacity of the central boiler plant. (2) The existing steam and condensate distribution system is in good condition and has adequate capacity for both near- and long-term planned expansion, although there is a need for some minor upgrades. (3) Conversion of the district heating distribution system to heating by hot water, while not recommended for the near term, may be beneficial over the longer term as buildings are converted to hot water distribution, and the existing steam distribution system approaches its average service life. (4) There are alternate sites in addition to the existing facility location where a boiler plant could meet the required air quality standard and the program requirements. (5) An expanded district heating system, capable of serving the Capitol Complex area and potentially extending to the National Life infrastructure may include several sites for simultaneous boiler plant location and operation. (b) In order to begin to address the immediate and long-term thermal energy needs of the Capitol Complex, the department of buildings and general services shall: (1) Begin design and permitting work to upgrade a new central heating plant facility at the present site at 10 Taylor Street. The minimum requirements for the new facility shall include 1600 Bhp total system capacity and four boilers (two oil; two wood). The boilers should be selected to provide the maximum flexibility relative to potential conversion for future use for combined heat and power and fuel sources. All new construction and

JOURNAL OF THE HOUSE 316 renovations shall be designed to utilize a future hot water distribution system, in addition to the existing steam distribution. (2) Prepare a 20-year (FY 2006-2020) plan for systematic conversion to hot water distribution systems in those buildings within the Capitol Complex that still rely on steam. The plan shall include conversion of the steam and condensate mains in the distribution system to a hot water system by FY 2021. (c) The commissioner of buildings and general services is authorized to expend up to $75,000 from previously authorized appropriations to develop a plan to upgrade the state’s proposed Montpelier heating plant, to develop a conceptual plan to provide district heating to state-owned facilities in Montpelier, and to work with the Biomass Energy Resource Center to advance the work funded under previous capital construction acts. With the approval of the secretary of administration, some or all of the expenditure authorized by this subsection may be used to work with private or public entities in connection with the master plan, including the Biomass Energy Resource Center. (d) On or before January 15, 2005, the commissioner shall report the results of the preliminary design work and the master plan to the house and senate committees on institutions. (e) The department of buildings and general services shall cooperate and share with the City of Montpelier information that will enable the city, at its expense, to undertake a parallel study and develop its own plan to develop a district heating proposal for sections of the city. Sec. 34. COLOCATION OF DEPARTMENT OF HEALTH AND CRIMINAL JUSTICE FORENSIC SCIENCE LABORATORIES (a) Disbursement and use of funds appropriated in Sec. 1b(3) of No. 63 of the Acts of 2003 for the design of colocated department of health and criminal justice forensic science laboratories shall not be contingent upon a decision to colocate with one or more additional entities. (b) The department of buildings and general services shall consult with the Vermont association of chiefs of police and the Vermont sheriffs’ association when planning for colocation of the laboratories, including when it determines the appropriate location for the building. Sec. 35. 29 V.S.A. § 166(c) is amended to read: § 166. SELLING OR RENTING STATE PROPERTY * * * 317 THURSDAY, MAY 20, 2004 (c) The provisions of subsections (a) and (b) of this section shall not be construed to allow the commissioner of buildings and general services to grant oil and gas leases on state-owned lands located within Vermont, but, with the approval of the governor, the commissioner of buildings and general services may sell or lease state lands for which an oil and gas lease has been granted, subject, however, to the terms and conditions of such oil and gas lease; provided, however, the commissioner shall be responsible for any interests owned by the state in oil and gas resources located outside the state and may, after consultation with the secretaries of administration and of natural resources, lease or sell any such interest. Sec. 36. 29 V.S.A. § 531(b) is amended to read: § 531. MANAGEMENT OF STATE OIL AND GAS RESOURCES * * * (b) Each state land manager shall be responsible for management of the leasing, exploration, and development of the oil and gas resources found on state lands under his the manager’s primary jurisdiction. The board shall be responsible for any interests owned by the state in oil and gas resources located outside the state. Sec. 37. HIGH PERFORMANCE DESIGN; STUDY On or before January 15, 2005, the commissioner of buildings and general services, in consultation with the commissioners of labor and industry and of education, shall file a report with the house and senate committees on institutions recommending legislative, regulatory, or other action by which the state can encourage or require the incorporation of high performance design techniques and features into planning for state buildings and school facilities. * * * Buildings and General Services; Resource Management Program * * * Sec. 38. 3 V.S.A. § 2291 is amended to read: § 2291. STATE AGENCY ENERGY PLAN (a) For purposes of this section, Definitions. (1) When used in this title, “life cycle costs” shall mean the present value purchase price of an item, plus the replacement cost, plus or minus the salvage value, plus the present value of operation and maintenance costs, plus the energy and environmental externalities’ costs or benefits. Where reliable data enables the agency of natural resources department of buildings and general services to establish these additional environmental externalities’ costs or benefits with respect to a particular purchasing decision or category of purchasing decisions, that is energy related, the agency department may

JOURNAL OF THE HOUSE 318 recommend the addition or subtraction of an additional price factor. Any appropriate agency may make such an adjustment. All state agencies shall consider the price factor and environmental considerations set by the department when examining life cycle costs for purchasing decisions. (2) “State facilities,” when used in this chapter, shall mean all state-owned or leased buildings, structures, appurtenances, and grounds. (3) “State fleet,” as used in this chapter, shall mean passenger vehicles and light duty trucks for use by state employees in the conduct of official duties, excluding law enforcement vehicles assigned to sworn law enforcement officers, and shall be procured by the commissioner of buildings and general services. (b) It is the general policy of the state of Vermont: (1) To assure, to the greatest extent practicable, that state government can meet its energy needs and reduce greenhouse gas emissions in a manner that is adequate, reliable, secure, and sustainable; that assures affordability and encourages the state’s economic vitality, the efficient use of energy resources, and cost-effective demand side management; and that is environmentally sound. (2) To identify and evaluate, on an ongoing basis, resources that will meet state government energy service, infrastructure, purchasing and supply, and fleet needs in accordance with the principles of least cost integrated planning; including efficiency, conservation and load management alternatives, purchasing preferences, wise use of renewable resources and environmentally sound infrastructure development, energy supply, purchasing practices, and fleet management. (c) The secretary of administration with the cooperation of the commissioners of the department of public service and the department of buildings and general services shall develop and oversee the implementation of a state agency energy plan for state government. The plan shall be adopted by April 1, 1993 June 30, 2005, modified as necessary, and readopted by the secretary on or before April 1, January 15 of each fifth year subsequent to 1995 2005. The plan shall accomplish the following objectives and requirements: (1) The intent of the plan is to To conserve resources, save energy, and reduce pollution. The plan shall devise strategies to identify to the greatest extent feasible, all opportunities for, conservation of resources through environmentally and economically sound infrastructure development, purchasing, and fleet management, and investments in, renewable energy and 319 THURSDAY, MAY 20, 2004 energy efficiency available to the state which are cost effective on a life cycle cost basis. (A) The secretary of administration, by means of procedures, shall develop life cycle cost guidelines for use in state buildings. These guidelines shall require all new construction and major renovations to comply with the document titled “State of Vermont, 1991, Department of Buildings and General Services Energy Conservation Standard for New and Existing State Buildings,” as that document may be amended. (B) The plan shall include consideration of state policies and operations which affect energy use. (2) To consider state policies and operations that affect energy use. (3) The plan shall To devise a strategy to implement or acquire all identified prudent opportunities and investments in as prompt, prudent and efficient a manner as possible. (A) The department of buildings and general services in consultation with the department of public service shall develop a work plan to reduce overall energy consumption in existing and proposed state buildings based on energy consumption levels specified in the energy conservation standard as referred to in subdivision (1)(A) of this subsection. The plan shall identify, in buildings at variance with the energy standards referred to in subdivision (1) (A) of this subsection, the cost to bring the building into compliance, and energy cost savings for the remaining useful life of the building. (B) The plan shall (4) To include appropriate provisions for monitoring resource and energy use and evaluating the impact of measures undertaken. (C) The plan shall (5) To identify education, management, and other relevant policy changes that are a part of the implementation strategy. (D) The department of buildings and general services shall coordinate state purchasing decisions, according to procedures developed by the secretary in cooperation with the commissioner of public service, so as to assure comparisons in terms of relative life cycle costs. (3) In annual budget and capital requests to the general assembly, the secretary of administration shall include work plans, budgets and proposed financing mechanisms to accomplish these reductions in energy use. Copies of those portions of budget and capital requests necessary to accomplish these

JOURNAL OF THE HOUSE 320 reductions in energy use shall be sent to the chairs of legislative committees on institutions and on natural resources and energy. (4) The plan shall (6) To devise a strategy to reduce vehicle fuel consumption greenhouse gas emissions. The plan shall include steps to encourage more efficient trip planning, to reduce the average fuel consumption of the agency state fleet, and to encourage car pooling and van pooling for agency alternatives to solo-commuting state employees for commuting and job-related travel. The agency of transportation, together with the agency of natural resources, shall jointly prepare a feasibility report by September 1, 1993, for a state vehicle alternative fuel pilot program. This program shall be implemented, as soon as practicable, if cost effective. (d) The department of buildings and general services shall coordinate state purchasing decisions, according to procedures developed by the commissioner in cooperation with the commissioner of public service, to assure comparisons based on relative life cycle costs. (e) The commissioner of buildings and general services shall develop life cycle cost guidelines for use in all state buildings. These guidelines shall require all new construction and major renovations to meet or exceed the document titled “The Vermont Guidelines for Energy Efficient Commercial Construction” as published in its most recent edition by the department of public service as that document may be amended. (1) The department of buildings and general services shall develop a state strategy to reduce overall energy consumption in existing and proposed state buildings based on energy consumption levels specified in the energy conservation standard referred to in this subsection. The plan shall identify, in buildings at variance with the energy standards referred to in this subsection, the cost to bring the building into compliance, and energy cost savings for the remaining useful life of the building. (5)(2) Each state agency and department, designated by the secretary of administration, which constructs or manages state buildings shall, by December 31, 1993 June 30, 2005, assure that new construction or major renovation of such structures incorporates those practical energy efficiency measures and energy consuming systems that result in the lowest life cycle cost. New construction of state buildings shall be highly efficient and shall employ optimal siting and design, given the uses to which the buildings are to be put, with respect to solar gain and temperature control. State buildings shall be shaded and ventilated and their air circulation managed, to the extent practical, instead of being cooled by air conditioning. 321 THURSDAY, MAY 20, 2004 (3) In capital requests to the general assembly, the commissioner of buildings and general services shall include, when appropriate, work plans, budgets, and proposed financing mechanisms to accomplish these reductions in energy use. (6) The plan shall recommend revisions to, or expansion of, existing state lending and development programs that would create incentives for the development of clean fuels, energy conservation, and alternative energy industries. (f) The commissioner of buildings and general services shall biennially report to the secretary of administration on the state’s implementation of this section. Sec. 39. 3 V.S.A. § 2291a is added to read: § 2291a. STATE AGENCY PLANNING AND COORDINATION State agencies shall engage in a continuing planning process to assure that programs and actions are consistent with the goals established in the state agency energy plan required by section 2291 of this title. This planning process shall be coordinated in a manner established by the commissioner of buildings and general services. Sec. 40. 3 V.S.A. § 2291b is added to read: § 2291b. ADOPTION OF STATE AGENCY ENERGY IMPLEMENTATION PLANS After review by the commissioner of buildings and general services and approval by the secretary of administration, each state agency shall adopt an implementation plan on or before June 30, 2005 to ensure compliance with the state agency energy plan. Each agency shall readopt and file its implementation plan biennially with the commissioner to ensure that the implementation plan remains compatible with the state agency energy plan. Sec. 41. REPEAL 29 V.S.A. § 51 (life cycle costs) is repealed. Sec. 42. 29 V.S.A. § 903 is amended to read: § 903. REQUISITION FOR SUPPLIES AND MATERIALS * * * (b) When purchasing any items mentioned in this chapter, the commissioner of buildings and general services, in any determination of the best interest of the state shall consider (1) specified quality, (2) price, (3) ease of access of supply, (4) incidental administrative costs, (5) proven reliability of

JOURNAL OF THE HOUSE 322 bidder, (6) use of recycled materials or products, (7) minimizing the creation, by the state, of solid waste, (8) the extent to which the usage of the item involves the generation of pollutants, (9) life cycle costs, if required under the state agency energy plan, as implemented, (10) the interests of the state relating to the proximity of the supplier and the costs of transportation, and relating to the economy of the state and the need to maintain and create jobs in the state and (11) the use of railroads and the increased revenues returning to the state from its railroad leasing program. The commissioner, in the commissioner’s discretion, may spend up to five ten percent more for comparable products that are made of recycled materials. If products made of recycled materials are to cost more than five ten percent more than comparable products, the commissioner shall receive consent of state entities that are to use the product, before completing the order for the materials in question. * * * (d) The commissioner of buildings and general services, with the assistance of all state agencies, shall cooperate with the generators and managers of waste materials which may be recycled and with the producers of products which use recycled materials to maximize the state’s use of those materials and products, particularly where the added cost of using waste materials rather than virgin materials is less than the cost avoided by not having that waste in the waste stream. Proceeds from the sale of waste materials collected by the department of buildings and general services shall be credited to a special fund and shall be available to the department to offset the cost of recycling efforts. The goal for the purchase of recycled materials shall be at least 15 40 percent by the end of 1988, 25 percent by the end of 1990, and 40 percent by the end of 1993 2008. For purposes of this section, “recycled materials” include, but are not limited to, recycled paper products, retreaded automobile tires, re-refined lubricating oil, used automotive parts, reclaimed solvents, recycled asphalt, recycled concrete and compost materials. By January 15 of each odd-numbered year, the commissioner of buildings and general services shall submit a report to the governor and to the natural resources committees of the general assembly reporting on the implementation of this subsection. * * * (f) The commissioner of buildings and general services, with the assistance of all state agencies, shall increase the procurement of recycled paint products for all state facilities. The state shall survey potential suppliers and vendors, and state facilities for which these paint products are suitable. The commissioner shall consider and implement modifications of performance 323 THURSDAY, MAY 20, 2004 standards, where appropriate, to achieve greater procurement of recycled paint products. (g) The commissioner of buildings and general services, in consultation with the commissioner of public service, when purchasing vehicles for state use shall consider vehicles using clean-burning alternative fuels when the alternative fuel is suitable for the vehicle’s operation, is available in the region where the vehicle will be used, and is competitively priced with traditional fuels. Sec. 43. 29 V.S.A. § 906 is amended to read: § 906. STATIONERY AND OFFICE SUPPLIES (a) The commissioner of buildings and general services shall maintain a central stores section in which to keep manage a supply program in order to ensure the disbursal of equipment for use by state government, including but not limited to fleet vehicles, office supplies, equipment, stationery, record books, and forms purchased by the state. The commissioner shall disburse them upon requisition to all state departments, institutions and within limits approved by the commissioner of finance and management to county officers whose compensation and expenses are paid by the state or any institution of higher education chartered in Vermont and accredited or holding a certificate of approval from the state board of education. The form of the requisition shall be prescribed by the commissioner of buildings and general services. * * * (c) The commissioner shall also maintain a central duplicating section to provide duplicating services for state departments, institutions and county officers whose compensation and expenses are paid by the state, and supply postal services to all state offices and officers located in the Montpelier or Waterbury areas, within limits approved by the commissioner of finance and management central Vermont and in other locations when feasible as determined by the commissioner. * * * (e) All operating expenses and services of the central stores supply section and central duplicating section shall be paid out of a revolving fund insofar as possible. The commissioner of buildings and general services, with the approval of the commissioner of finance and management, may assess charges for supplies, equipment and services, which the commissioner of finance and management shall charge back to appropriations for the various departments all items mentioned under this section, and credit like amounts to the revolving fund.

JOURNAL OF THE HOUSE 324 Sec. 44. 3 V.S.A. § 217 is amended to read: § 217. PASSENGER VEHICLES; SALE (a) No state department or agency, board, or commission, except the governor and, the commissioner of buildings and general services, and the commissioners of the departments of fish and wildlife and of public safety for use of employees who are sworn law enforcement officers, may maintain or provide passenger vehicles for the use of employees, subject to such exceptions as may be made by the secretary of administration commissioner of buildings and general services in circumstances where there is documented evidence of necessity based upon the requirements or conditions of individual state programs. (b) The department of buildings and general services of the agency of administration shall dispose of all cars owned by the state except those cars which are determined by the secretary of administration to be necessary to the operations of individual state programs under subsection (a) of this section. All money which has been budgeted in any fiscal year for the maintenance of those vehicles and the proceeds from the sale of those vehicles shall be applied as necessary for the purpose of reimbursing state employees for the use of their private vehicles to the future replacement of the state fleet. Any unspent balance shall revert to the general fund. (c) Any state employee who regularly drives a particular state car, shall if the car is to be disposed of by sale, be offered the option of purchasing the car in a manner and within a reasonable time as determined by the commissioner of buildings and general services. At least 50 percent of the vehicles purchased annually by the commissioner shall be low emission passenger vehicles. Sec. 45. CENTRAL VERMONT FLEET; PILOT PROJECT The commissioner of buildings and general services is authorized to initiate a central Vermont fleet pilot project to demonstrate efficiencies, cost savings, and decreased greenhouse gas emissions based on reducing solo-commuting and the use of private vehicles for state business. On or before April 15, 2005, the commissioner shall file a written report with the house and senate committees on institutions and appropriations regarding the effectiveness of the pilot project, which shall include comments from the Vermont state employees’ association. Sec. 46. 29 V.S.A. § 168 is added to read: § 168. STATE RESOURCE MANAGEMENT; REVOLVING FUND 325 THURSDAY, MAY 20, 2004 (a) Resource management. The department shall be responsible for administering the interest of the state in all resource conservation measures, including equipment replacement, studies, weatherization, and construction of improvements affecting the use of energy resources. All resource conservation measures taken for the benefit of departments or agencies to which this section applies shall, beginning on July 1, 2004, be made and executed by and in the name of the commissioner. (b) Revolving fund. (1) There is established a resource management revolving fund to provide revenue for implementation of resource conservation measures anticipated to generate a life cycle cost benefit to the state. All state agencies responsible for development and operations and maintenance of state infrastructure shall have access to the revolving fund on a priority basis established by the commissioner. (2) The fund shall consist of: (A) Moneys appropriated to the fund, or which are paid to it under authorization of the emergency board. (B) Money saved by the implementation of resource management conservation measures. (C) Fees for administrative costs paid by departments and agencies, which shall be fixed by the commissioner subject to the approval of the secretary of administration. (3) Moneys from the fund shall be expended by the commissioner for resource conservation measures anticipated to generate a life cycle cost benefit to the state and all necessary costs involved with the administration of state agency energy planning as determined by the commissioner. (4) The commissioner shall establish criteria to determine eligibility for funding of resource conservation measures. (5) Agencies or departments receiving funding shall repay the fund through their regular operating budgets according to a schedule established by the commissioner. Repayment shall include charges of fees for administrative costs over the term of the repayment. (6) The commissioner of finance and management may anticipate receipts to this fund and issue warrants based thereon. (7) The commissioner of buildings and general services shall maintain accurate and complete records of all receipts by and expenditures from the fund and shall report to the general assembly on January 15 of

JOURNAL OF THE HOUSE 326 each year regarding projects approved through the fund, the status of the fund, and a consolidated amortization schedule. (8) All balances remaining at the end of a fiscal year shall be carried over to the following year, and the auditor of accounts shall audit the fund. * * * Judiciary * * * Sec. 47. 24 V.S.A. § 82(b) is amended to read: (b) Any bond issue pursuant to this chapter for capital construction shall be passed by a majority of the votes of those voting. The issue shall be submitted to the voters of the county at the first general or annual municipal election scheduled at least 90 days after the completion of the preliminary construction plans and cost estimates. Sec. 48. 24 V.S.A. § 133(e) is amended to read: (e) The proposed budget shall contain any cost estimates and preliminary plans for capital construction in the county pursuant to subchapter 2 of chapter 3 of this title, estimates of the indebtedness of the county, estimates of the probable ordinary expenses of the county for the ensuing year, and any and all other expenses and obligations of the county. The budget may contain provision for additions to a reserve fund and the accumulated total reserve fund shall not at any time exceed an amount equal to ten per cent percent of the current budget presented. The Pursuant to a capital program, as described in section 4426 of this title, the budget may also include a provision for a separate reserve fund for capital construction, reconstruction, remodeling, repairs, renovation, design, or redesign which shall not at any time exceed an amount equal to 50 percent of the current budget presented. However, if capital construction, reconstruction, remodeling, repairs, renovation, design, or redesign is necessitated by an insured loss or damage to a county building. The , the separate reserve fund shall be limited to may also include the amount of insurance proceeds received as a result of the loss or damage. All county budgets shall be presented on the form prescribed by the auditor of accounts, after consultation with the association of assistant judges, and shall include the amounts currently budgeted for each item included in the proposed budget. * * * Commerce and Community Development * * * Sec. 49. 24 V.S.A. § 2797 is added to read: § 2797. PROPERTY ASSESSMENT FUND ; BROWNFIELDS AND REDEVELOPMENT; COMPETITIVE PROGRAM (a) There is created a property assessment fund pursuant to subchapter 5 of chapter 7 of Title 32 to be administered by the department of housing and 327 THURSDAY, MAY 20, 2004 community affairs for the purpose of providing financing, on a competitive basis, to municipalities that demonstrate a financial need in order to determine and evaluate a full assessment of the extent and the cost of remediation of property, or in the case of an existing building, an assessment that supports a clear plan, including the associated costs of renovation to bring the building into compliance with state and local building codes. (b) The fund shall be composed of the following: (1) State or federal funds that may be appropriated by the general assembly. (2) Any gifts, grants, or other contributions to the funds. (3) Proceeds from the issuance of general obligation bonds. (c) A municipality deemed financially eligible may apply to the fund for the assessment of property and existing buildings proposed for redevelopment, provided the department finds that the property or building: (1) Is not likely to be renovated or improved without the preliminary assessment. (2) When renovated or redeveloped, will integrate and be compatible with any applicable and approved regional development, capital, and municipal plans; is expected to create new property tax if developed by a taxable entity; and is expected to reduce pressure for development on open or undeveloped land in the local community or in the region. (d) The department shall distribute funds under this section in a manner that provides funding for assessment projects of various sizes in as many geographical areas of the state as possible and may require matching funds from the municipality in which an assessment project is conducted. Sec. 50. LABOR AND INDUSTRY; BUILDING CODES; DOWNTOWN AND VILLAGE CENTER PRESERVATION The department of labor and industry, or the department of public safety if it assumes the duties identified in this section, shall work with property owners to understand and apply the technical requirements of the fire prevention and life safety code and the accessibility code, including alternative solutions that may be available for existing buildings with the goal of maintaining safety, increasing universal access, reducing application of resources, and increasing predictability. The department shall issue a report on or before January 15, 2005, indicating the progress being made in its continued implementation of the following policies:

JOURNAL OF THE HOUSE 328 (1) Amending and updating the Vermont Fire Prevention and Building Code to adopt current national standards on fire prevention, life safety, and building construction and renovation. Particular emphasis will be placed on the following items: (A) Ensuring that fire and life safety code requirements will allow longer time frames for compliance where appropriate. (B) Developing standards for low risk occupancies with limited code obligations. (C) Promoting use of equivalencies and alternatives that provide equivalent safety protection. (D) Assuring that a change in use of an existing building which does not raise the hazard level of the occupancy does not trigger its consideration as a new building under the life safety code. (2) Ensuring that the preliminary review process identifies high priority code issues and provides mechanisms to address satisfactorily those issues. Sec. 51. SALES TAX HOLIDAY FOR COMPUTER PURCHASES It is the policy of the state to encourage the citizens of Vermont to acquire and become skilled with modern technology, especially personal computers, and to facilitate their acquisition of basic computers for this purpose. Notwithstanding the provisions of chapter 233 of Title 32, no sales or use tax shall be imposed or collected on sales from August 7 through 9, 2004 and from October 9 through 11, 2004, of personal computers to individuals for personal use. Consistent with the purpose of this section, the commissioner of taxes shall publish a list of personal computers and components thereof that are to be exempt from the sales and use tax under this section. * * * Education * * * Sec. 52. 16 V.S.A. § 3448(a)(9) is amended to read: § 3448. APPROVAL AND FUNDING OF SCHOOL CONSTRUCTION PROJECTS; RENEWABLE ENERGY (a) Construction aid. * * * (9) Payment. Upon satisfactory evidence that a project approved under subdivision (5) of this subsection is under construction or has been constructed, and upon appropriation of funds sufficient to fund the state aid due under this section, the state board shall certify an award for the project to the commissioner of finance and management who shall issue a warrant for the 329 THURSDAY, MAY 20, 2004 payment of one-half of the award, or the entire award if the project is complete. After a project has been completed according to approved plans and specifications and the cost thereof has been audited by the department, the commissioner shall certify the remainder of the award due for the project to the commissioner of finance and management who shall issue a warrant for the payment. Provided however, if a project that is included on a prioritized list, for which list the general assembly has appropriated funds in any year, is not eligible to be certified for one-half of the award or for the entire award, and if another project of lesser priority is eligible for certification, then nothing in this section shall preclude the state board from certifying an award for the lesser priority project prior to the higher priority project. Sec. 53. Sec. 63(b) of No. 149 of the Acts of the 2001 Adj. Sess. (2002) is amended: (b) For purposes of determining when it shall receive its award, each of the technical centers identified in subsection (a) of this section shall maintain its position in the priority set forth in subsection (a) be eligible to receive payment pursuant to the provisions of 16 V.S.A. § 3448(a)(9). The order in which the projects are set forth in subsection (a) of this section shall have no effect on determining the priority of payments to the three projects. Notwithstanding any provisions of chapter 123 of Title 16 to the contrary, this section sets forth the process required for these three technical centers, provided these technical centers shall conform to the standards for technical education center construction developed jointly by the commissioners of education and of buildings and general services pursuant to Sec. 44 of No. 148 of the Acts of 2000. Nothing in this section shall be construed to prohibit the districts responsible for these three technical centers from seeking voter approval to borrow 100 percent of the project costs in anticipation of state aid and commencing construction, provided the district shall not be reimbursed by the state for debt incurred due to such borrowing. The capital construction funding request for these three projects shall be a separate line item in the annual request submitted by the state board of education pursuant to 16 V.S.A. § 3448(a)(4). Sec. 54. Sec. 49 of No. 68 of the Acts of 2003 is amended to read: Sec. 49. CONSTRUCTION AID FOR SCHOOL CONSOLIDATION; SUNSET (a) Notwithstanding 16 V.S.A. § 3448(a)(7)(A) which provides 30 percent construction aid for school buildings, the amount of an award shall be 50 percent of the approved cost of a project or applicable portion of the project, provided that, as determined by the commissioner of education:

JOURNAL OF THE HOUSE 330 (1) the project consolidates grades, classes, supervisory or other functions in school buildings and school facilities within a school district in a more cost-effective and educationally appropriate manner in a school district; or (2) two or more school districts have formed a joint contract district or a union district for the purpose of building a school the initial construction or initial renovation project is an integral part of the formation of a joint contract or union district that is designed to serve the educational needs of the participating districts in a more cost-effective and educationally appropriate manner than would individual projects constructed separately. (b) This section shall apply only to a project which has received preliminary approval by June 30, 2008 and which is eventually approved and funded pursuant to section 3448 of Title 16. Sec. 55. Sec. 5(d)(2) of the Acts of 2003 is amended to read: (2) The sum of $318,000 is appropriated to the department of buildings and general services for the planning and construction or fit-up of space preparation of construction documents for a power mechanics program at the Patricia A. Hannaford Career Center, as the first phase in the development of an agricultural workforce development center project; provided the Middlebury Union High School District first demonstrates to the satisfaction of the commissioners of education and of buildings and general services that it has determined the location of the project, that the funds appropriated in this subsection are adequate to complete phase one of the project, and that the District has received commitments for the 50 percent local match required in 16 V.S.A. § 3448e to support the planning and construction or fit-up of space for the power mechanics program. Notwithstanding any provision of Title 16 to the contrary, the District is authorized to make the demonstration of the required 50 percent local match under this subsection by presenting evidence of in-kind contributions of equipment from private sources in the discretion of the commissioner, up to $141,752 of this appropriation may be used by the Patricia A. Hannaford Regional Technical School District to purchase a parcel of land, of approximately 5.8 acres and known as Lot #7, in the Middlebury Industrial Park in Middlebury, VT. Sec. 56. CHAMPLAIN VALLEY UNION HIGH SCHOOL DISTRICT; CONSTRUCTION AID AUTHORIZED Notwithstanding any provision of law to the contrary, including the requirement that a district obtain state board of education approval prior to commencing construction on a project for which the district seeks state school construction aid, the Champlain Valley Union High School District 331 THURSDAY, MAY 20, 2004 (CVUHSD) may receive 25 percent construction aid for the state’s total share of costs incurred in connection with the renovation project completed in the summer of 2002, which state share shall not exceed $235,270, if such costs are otherwise deemed eligible by the commissioner of education under state board rules. The CVUHSD project shall be placed in order of priority for receipt of construction aid after the final school district on the list of school districts submitted by the state board of education in January 2004. Sec. 57. FINDINGS The general assembly finds that it is desirable to encourage districts to enter into performance contracts for the construction or installation of cost-saving measures in order to realize energy and operational cost savings. It is also desirable to grant state aid to a district entering into a performance contract, enabling it to make all or a portion of its contractual payments before they are due and thereby increase savings by reducing finance charges. Sec. 58. 16 V.S.A. § 3448f is added to read: § 3448f. ENERGY PERFORMANCE CONTRACTING; AUTHORIZATION; STATE AID (a) Definitions. As used in this section: (1) “Cost-saving measure” means any facility improvement, repair, or alteration or any equipment, fixture, or furnishing to be constructed or installed in any facility that is designed to reduce energy consumption and operating costs or to increase the operating efficiency of facilities for their appointed functions, that is cost effective, and that is further defined by state board rule. (2) “District” means a district or independent school eligible for assistance under section 3447 of this title. (3) “Energy and operational cost-savings” means any expense that is eliminated or decreased on a long-term basis as a result of any cost saving measure, but does not include shifting personnel costs or similar short-term cost - savings. (4) “Performance contract” means a contract for the valuation, recommendation, and implementation of one or more cost-saving measures for the purpose of realizing energy and operational cost savings where payment by the district is contingent on energy or operational cost-saving results. (b) Authorization. Notwithstanding any provision of law to the contrary, a district may enter into a performance contract pursuant to this section for a period not to exceed 20 years . Cost-saving measures implemented under the contract shall comply with all state and local building codes.

JOURNAL OF THE HOUSE 332 (c) Selection of qualified contractor. (1) Request for proposals. The district shall issue a request for proposals from individuals or entities interested in entering into a performance contract (who shall become the “contractor”), shall consider the proposals, and shall select a qualified contractor to engage in final contract negotiations. In developing the request for proposals and in selecting a qualified contractor, the district should make use of any assistance available from Efficiency Vermont, the school energy management program of the Vermont superintendents association, and other similar entities. Factors to be considered in the final selection shall include contract terms, comprehensiveness of the proposal, comprehensiveness of cost-saving measures, experience of the contractor, quality of technical approach, and overall benefits to the district. (2) Financial grade audit. The person selected pursuant to this subsection shall prepare a financial grade energy audit which, upon acceptance by the district, shall be part of the final performance contract executed with the district. If after preparation of the financial grade energy audit the district decides not to execute a performance contract with the contractor, the district shall pay the qualified contractor for costs incurred in preparing the financial grade energy audit. If, however, the district decides to execute a performance contract with the contractor, the costs of the financial grade energy audit shall be part of the costs of the performance contract. (3) Voter approval of proposed performance contract. If the terms of the proposed performance contract permit the district to make payments to the contractor over a period of time exceeding ten years, then the district shall not enter into a final performance contract until it receives approval from the electorate to do so. (d) Installment payment and lease-purchase agreements. A district may enter into a performance contract structured as an installment payment contract or lease-purchase agreement for the purchase and installation of cost-saving measures. Financing implemented through the contractor or a person other than the contractor is authorized. (e) Payment schedule and savings. Each performance contract shall provide that all payments between parties, except obligations on termination of the contract before its expiration, shall be made over time, and that the objective of the performance contract is implementation of cost-saving measures and energy and operational cost savings. (f) State funding for energy conservation measures. 333 THURSDAY, MAY 20, 2004 (1) Application for construction aid. A district that intends to construct or install cost-saving measures under a performance contract and wishes to receive state school construction aid in connection with those measures shall submit a written application to the commissioner that: (A) Specifies the need for and purpose of the project, including details of the cost-saving measure or measures proposed. (B) Provides details concerning the qualifications of the person with whom the district has entered or intends to enter into a performance contract and concerning the district’s adherence to the selection process required by subsection (c) of this section, including detailed information regarding the assistance received from Efficiency Vermont, the school energy management program, and similar entities. (C) Provides detailed information concerning the energy and operational cost - savings projected to result from the proposed cost-saving measures. (D) Provides detailed information concerning the amount and schedule of payments to be made under the terms of the performance contract. (E) Provides any other information the commissioner deems necessary for consideration of the application. (2) Approval of application. After consultation with the department of buildings and general services and any other expert resources that may be available, including Efficiency Vermont and the school energy management program of the Vermont superintendents association, the commissioner may approve a complete application. (3) Priorities. Following approval of a district’s application, the state board shall assign points, established by board rule, to the project so that the project can be placed on a priority list distinct from but similar to the list established under section 3448 of this title, based on the number of points received. Once a project receives points, if it does not receive funding in a given year, it shall not lose points in subsequent years and, pursuant to board rule and provided the scope of the project remains the same, it shall gain points due to the length of time on the list and may gain points for any other reason. Prioritized projects under this section shall be included in the state board’s request for legislative appropriation as a separate and distinct line item under section 3448 of this title. Any legislative appropriation made to fund the line item for performance contracts shall not exceed 20 percent of the appropriation made in the same year to fund state aid for school construction under section 3448.

JOURNAL OF THE HOUSE 334 (4) Award of state aid. A district shall not be reimbursed for debt incurred due to borrowing funds in anticipation of aid under this section. The total amount of an award shall be 20 percent of the approved total cost of the project, provided the total award shall not e xceed the total payment that would be due from the district, less interest. (5) Eligible costs. A project or portions of a project under this section shall be eligible for aid pursuant to criteria established by state board rule. (6) Payment. Upon (A) completion of the construction or installation of the cost-saving measure, (B) determination by the department of buildings and general services that implementation of the cost-saving measures is expected to result in energy and operational cost savings, and (C) legislative appropriation sufficient to fund the state aid due under this section, the state board shall certify an award for the project to the commissioner of finance and management who shall issue a warrant for the payment of the award. A district awarded state aid under this section shall use the state aid solely for the purpose of paying all or a portion of the obligation due under the performance contract at the time the award is received. (g) Refund upon sale. Upon the sale by a district of any energy-saving measure or building in which an energy-saving measure was constructed or installed, for which state aid was awarded under this section, the district shall refund funds equal to the aid received. All refunds shall be deposited with the state treasurer and used for awards under this section and section 3448 of this title. No district shall receive any state general aid unless the district complies with this subsection. Sec. 59. 16 V.S.A. § 3448(a)(7)(B) is amended to read: (7) Award of construction aid. * * * (B) The amount of an award for the incremental costs associated with the installation of a space heating, water heating, cooling, or refrigeration system that uses biomass, a geothermal/ground source, wind, or solar energy as the primary heating or cooling source shall be 50 90 percent of the approved cost of the incremental costs of the project, or 40 percent of the approved cost of a fuel system that would reduce fuel use by 10 percent or more. Only those costs in excess of the costs for a traditional fossil fuel system shall be eligible for the award, and may include the costs of additional square footage, necessary equipment, an additional chimney, and air quality technology. * * * UVM and State Colleges * * * 335 THURSDAY, MAY 20, 2004 Sec. 60. SPENDING AND BONDING AUTHORIZATION; VERMONT STATE COLLEGES In conformity with 16 V.S.A. § 2171(e), the general assembly approves the expenditure by the Vermont state colleges from its revenues, other than state appropriations, and from its self-generated revenues established for the purpose of capital improvements on housing, dining, and general purpose facilities, to an aggregate of $1,000,000 for necessary capital improvements. Sec. 61. UNIVERSITY OF VERMONT; VERMONT STATE COLLEGES; STUDY REGARDING FUTURE APPROPRIATIONS The president of the University of Vermont, the chancellor of the Vermont state colleges, and the secretary of administration, or their designees, shall jointly (1) Review the capital funds appropriated to the University and the state colleges from at least 1997 to the present; (2) Consider the manner in which future capital appropriations should be made to these entities; and (3) Present their findings and recommendations to the house and senate committees on institutions on or before January 15, 2005. * * * Natural Resources * * * Sec. 62. ACTION REGARDING STATE LAND Pursuant to 10 V.S.A. § 2603(b), the commissioner of forests, parks and recreation is authorized to take action regarding state land, as follows: (1) To convey two parcels owned by the state on Peacham Pond in the Town of Peacham to James Mason in exchange for his conveyance to the state of four parcels he currently owns on Peacham Pond; provided that this exchange is contingent upon placing restrictions on the two parcels conveyed by the state to permit construction of no more than one dwelling on the combined parcels; and further provided that authority for this exchange is contingent on securing the advance support of the Town of Peacham. Because all parcels are approximately 100’ x 100’ in size, this exchange will result in the addition of approximately 200 feet of Peacham Pond shoreline to the Groton State Forest. (2) To convey state property consisting of several parcels totaling approximately two acres, located between existing camp lots on Lake Groton and the Camp Access Road within Groton State Forest, all within the Town of Groton, to Peter Lyon in exchange for his conveyance of a 21-acre inholding within Groton State Forest near Seyon Ranch, also in the Town of Groton;

JOURNAL OF THE HOUSE 336 provided that the parcels conveyed by the state shall be subject to covenants prohibiting the disposal of any effluent and the construction of additional residences or effluent-related structures on the property. Peter Lyon subsequently intends to convey the parcels transferred to him to adjacent camp owners. Any such subsequent exchange to the adjacent camp owners will be contingent on the camp owner relinquishing to the state any rights they may have to use the Montpelier to Wells River railroad bed as legal access to their camps. The exchange is also contingent on obtaining all necessary local and state permits and approvals. The Groton selectboard has given its approval for this exchange. (3) To revise existing deed covenants preventing construction of structures on the southerly portion of camp lots numbered 52 and 53 owned by Chris and Marjorie Milne and lots numbered 50 and 51 owned by Edward Cormier on Peacham Pond, in the Town of Peacham, being a portion of property totaling approximately 25 acres conveyed in separate parcels by the state to owners of existing lots in 1974 to connect the lots to Peacham Pond in exchange for conveyance of land of equal value that was added to Groton State Forest. In exchange for the revision of deed covenants, the lot owners shall agree to merge two existing lots together and limit the combined lot to the construction of one dwelling. New deed covenants shall require that any structures be at least 100 feet from the high water mark of the pond. The exchange authorized by this subsection is contingent on securing the support of the Town of Peacham selectboard. Lot owners have received all necessary local permits. Sec. 63. 10 V.S.A. § 1571(9) is amended to read: § 1571. DEFINITIONS As used in this chapter: * * * (9) “Disadvantaged municipality” means a municipality or the served area of a municipality which has: (A) Has a median household income below the state average median household income as determined by the secretary, and which after construction of the proposed water supply improvements will have an annual household user cost greater than one percent of the median household income as determined by the secretary; or (B) Has a median household income equal to or greater than the state average median household income as determined by the secretary, and which after construction of the proposed water supply improvements will have an 337 THURSDAY, MAY 20, 2004 annual household user cost greater than 2.5 percent of the median household income as determined by the secretary. Sec. 64. 10 V.S.A. § 1624(b)(2)(A) is amended to read: § 1624. FINANCIAL ASSISTANCE WITH WATER SUPPLY PROJECTS * * * (b) Loans. * * * (2) The certification by the secretary shall specify the interest rate, and indicate which of the following loan conditions concerning construction loans apply: (A) The term shall not exceed 20 years, and the annual interest rate, plus administrative fee, shall be no more than three percent or less than zero percent, except that when the applicant municipality is disadvantaged as defined by section 1571(9) of this title, the term shall not exceed 30 years, and. When the applicant municipality is disadvantaged as defined in section 1571(9)(A) of this title, the annual interest rate, plus administrative fee, shall be no more than three percent or less than minus three percent. Sec. 65. 24 V.S.A. § 4771(a)(5) is amended to read: § 4771. CONDITIONS OF LOAN AGREEMENT (a) VEDA may make loans to applicants on behalf of the state for one or more of the purposes set forth in subsection 4770(b) of this title. Each such loan shall be made subject to the following conditions: * * * (5) Notwithstanding subdivision (4) of this subsection, a privately-owned nonprofit community type system may qualify for a 30-year loan term at an interest rate, plus administrative fee, to be established by the secretary of natural resources which shall be no more than three percent or less than minus three percent, provided the applicant system meets the income level and annual household user cost requirements of a disadvantaged municipality as defined in subdivision 1571(9)(A) of Title 10, and provided that at least 80 percent of the residential units served by the water system is continuously occupied by local residents and at least 80 percent of the water produced is for residential use, in which case the secretary shall certify the loan term and interest rate to VEDA. In no instance shall the annual interest rate, plus an administrative fee, be less than is necessary to achieve an annual household

JOURNAL OF THE HOUSE 338 user cost equal to one percent of the median household income of the applicant water system computed in the same manner Sec. 66. 10 V.S.A. § 1106 is added to read: § 1106. UNSAFE DAM REVOLVING LOAN FUND (a) There is hereby established a special fund to be known as t he Vermont unsafe dam revolving loan fund which shall be used to provide grants and loans to municipalities, nonprofit entities, and private individuals, pursuant to rules proposed by the agency of natural resources and enacted by the general assembly, for the reconstruction, repair, removal, breaching, draining, or other action necessary to reduce the threat of a dam or portion of a dam determined to be unsafe pursuant to section 1095 of this chapter. (b) The fund created by this section shall be established and held separate and apart from any other funds or moneys of state and shall be used and administered exclusively for the purposes set forth in this section. The funds shall be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury. The fund shall consist of the following: (1) Such sums as may be appropriated or transferred thereto from time to time by the general assembly, the emergency board, or the joint fiscal committee during such times as the general assembly is not in session. (2) Principal and interest received from the repayment of loans made from the fund. (3) Capitalization grants and awards made to the state by the United States of America for the purposes for which the fund has been established. (4) Interest earned from the investment of fund balances. (5) Private gifts, bequests, and donations made to the state for the purposes for which the fund has been established. (6) Other funds from any public or private source intended for use for any of the purposes for which the fund has been established. (c) The secretary may bring an action under this subsection or other available state and federal laws against the owner of the dam to seek reimbursement to the fund for all loans made from the fund pursuant to this section. Sec. 67. 10 V.S.A. § 921(b) is amended to read: (b) The aquatic nuisance control program shall perform the following services: 339 THURSDAY, MAY 20, 2004 * * * (5) administer a grant-in-aid program under section 922 of this title; (6) place a sign at least 2’ by 2’ in size which states that the water is infected with an aquatic nuisance and that a person transporting the nuisance in violation of section 1266 of this title may be subject to a penalty of up to $1,000.00 pursuant to 23 V.S.A. § 3317, so that the sign is easily visible from a ramp used to launch vessels at any fish and wildlife access area on a body of water infected with an aquatic nuisance; (7) provide the commissioner of fish and wildlife and the commissioner of motor vehicles with written educational information about aquatic nuisances, which can be included in an envelope containing a boat registration and in a fish and wildlife publication pertaining to fishing and boating. Sec. 68. 10 V.S.A. § 4132(b) is amended to read: (b) The commissioner may publish such bulletins as he or she deems advisable for information and instruction concerning the work of the department and shall keep an account of the business and proceedings of the department. Any publication available to the general public which describes rules and regulations regarding boating and fishing shall include information about aquatic nuisances provided to the commissioner pursuant to subdivision 921(b)(7) of this title. Sec. 69. 10 V.S.A. § 4145(d) is added to read: (d) The board shall allow the commissioner of environmental conservation to post aquatic nuisance signs pursuant to subdivision 921(b)(6) of this title. Sec. 70. 23 V.S.A. § 3317(b) is amended to read: (b) A person who violates section 1266 of Title 10, shall be subject to a penalty of not more than $1,000.00 for each violation. A person who violates a rule promulgated under section 1424 of Title 10 or any of the following sections of this title shall be subject to a penalty of not more than $300.00 for each violation: Sec. 71. 10 V.S.A. § 1973(i) is added to read: (i) Notwithstanding section 1-407 of the state wastewater system and potable water supply rules, effective August 16, 2002, a lot that contained two single family residences, as of January 1, 1999, but did not have the state permit required at that time is eligible for a permit for the subdivision of improved lots under subsection 1-407(a)(2) of those rules, provided that the subdivision of the lot would only create a boundary between the two single family residences and thereby place each residence on its own lot.

JOURNAL OF THE HOUSE 340 Sec. 72. PETERSON DAM (a) Prior to making a final determination in any pending proceeding related to the Peterson Dam, the public service board shall convene two public informational hearings after the effective date of this act. One of the meetings shall occur in the Town of Milton and one shall occur in a municipality served by Central Vermont Public Service that is outside of the Milton region. The purpose of the hearings will be to inform the public about the proposal to remove the dam and the related public service board proceedings. At the hearing, the board shall also receive public comment concerning the proposal and related matters, including the impact that removal of the dam would have on the following: (1) Rates and ratepayers, (2) Flood control, (3) The economic welfare of the Town of Milton, (4) Water quality, and (5) System stability and reliability. (b) The public service board shall consider the comments it receives pursuant to subsection (a) of this section when making a final determination in any pending proceeding related to the Peterson Dam. Sec. 73. DUFRESNE DAM The secretary of natural resources shall investigate the process required for removal of the Dufresne Dam on the Batten Kill at the earliest possible date, including cost estimates. On or before January 15, 2005, the secretary shall submit to the house and senate committees on institutions a report detailing findings and recommendations, including cost estimates, a time line for removal, and any proposals for legislative, regulatory, or other action. Sec. 74. WOODFORD STATE PARK Sec. 63(b) of No. 63 of the Acts of 2003 provides that up to $15,000 of the appropriation made in Sec. 8(c) of that act can be spent by the commissioner of forests, parks and recreation to construct a gravel parking lot at Woodford State Park in Woodford. Notwithstanding any provision of Sec. 63 to the contrary, the commissioner may use any portion of that $15,000 authorization to improve the existing parking lot and the Route 9 crossing at the Woodford State Park as follows: (1) To fix the grade on the existing west access to the Adams lot. (2) To install a marked crosswalk and warning signal on Route 9. 341 THURSDAY, MAY 20, 2004 (3) To reorganize parking and install appropriate signage in the Adams lot. Sec. 75. 10 V.S.A. § 6001(3)(E) is added to read: (E) When development is proposed to occur on a parcel or tract of land that is devoted to farming activity as defined in section 6001(22) of this chapter, only those portions of the parcel or the tract that support the development shall be subject to regulation under this chapter. Permits issued under this chapter shall not impose conditions on other portions of the parcel or tract of land which do not support the development and that restrict or conflict with accepted agricultural practices adopted by the secretary of agriculture, food and markets. Sec. 76. 10 V.S.A. § 6001(22) is amended to read: (22) "Farming" means: * * * (B) the raising, feeding“, or management of livestock, poultry, equines, fish or bees; or * * * (F) the on-site production of fuel or power from agricultural products or wastes produced on the farm; or (G) the raising, feeding, or management of four or more equines owned or boarded by the farmer, including training, showing, and providing instruction and lessons in riding, training, and the management of equines. Sec. 77. PHOSPHORUS REMOVAL; WASTE WATER TREATMENT; STUDY (a) The secretary of natural resources shall study the advisability of requiring, as conditions of any state grant made for phosphorus removal equipment, (1) That phosphorus be removed on a year-round basis and (2) That phosphorus be removed to a maximum of 0.8 mg/l, which level could be increased or decreased based upon subsequent testing of the receiving water. (b) The secretary shall study the advisability of preventing any municipality that requests an upgrade to a waste water treatment facility from degrading the quality of the receiving water by expanding waste management zones or increasing the concentrations of pollutants.

JOURNAL OF THE HOUSE 342 (c) On or before January 15, 2005, the secretary shall report his or her findings and recommendations, legislative or otherwise, to the house and senate committees on institutions and on natural resources and energy. * * * Vermont Veterans’ Home * * * Sec. 78. HISTORY The following text shall be published as an annotation at the beginning of 20 V.S.A. chapter 87, which is created by the next section of this act:

H ISTORY (a) The Vermont general assembly originally incorporated “The Trustees of the Soldiers’ Home in Vermont” in No. 180 of the Acts of the 1884. Section 2 of the act authorized the trustees to “receive, hold, manage and convey such real and personal estate . . . as they may acquire by gift, grant, purchase or otherwise, for the purpose of maintaining in this State a home [for soldiers and sailors] under such conditions and regulations as the trustees may . . . prescribe.” (b) On January 15, 1887, the land upon which the Vermont veterans’ home currently sits was conveyed to the trustees by quitclaim deed of the Trenor W. Park Home for Destitute Children and Women, which was recorded in the Bennington land records at book 56, pages 436-40. The deed conveyed land and buildings to the trustees in trust, subject to a right of reversion to the grantor in the event the property ceased to be used to house soldiers. If the property reverted to the grantor, then the grantor would be required to reimburse the state for the appraised value of any “betterments and improvements” the state expended on the property. Failing that payment, the real estate and buildings would become the property of the state of Vermont “for such benevolent and charitable uses as the Legislature may direct.” (c) In a decree dated May 27, 1964, the Bennington county chancery court granted the trustees’ request to modify the terms of the trust created by the quitclaim deed. The chancery court decreed as follows: “ 1. That Eliza H. McCullough, Laura H. Jennings and Trenor L. Park, their heirs, executors, administrators and assigns and any and all persons claiming under them or any of them, have no present interest in the land and premises conveyed to the Trustees of the Soldiers’ Home in Vermont by deed of Trenor W. Park Home for Destitute Children and Women, dated January 15, 1887 and recorded in Book 56 at pages 436-440 of the Bennington Land Records. 343 THURSDAY, MAY 20, 2004 2. That the Plaintiff, with the concurrence of the Attorney General of the State of Vermont, is hereby authorized to convey to Defendant, Mt. Anthony Union School District, also known as Mt. Anthony Union High School District (No. 14), an estate in fee simple absolute, in and to the lands described in Section 9 of Plaintiff’s Petition, and as described in a certain Option Agreement between Plaintiff and Mt. Anthony Union School District dated the 10th day of January 1964. 3. That the Plaintiff, with the concurrence of the Attorney General of the State of Vermont, is hereby authorized to transfer its water system including its reservoir, pipe line system and easements to the Village of Bennington or to any other person or corporation upon such terms and conditions as to them shall seem proper. 4. That the Plaintiff, with the concurrence of the Attorney General of the State of Vermont, is hereby authorized to convey an estate in fee simple absolute or a lessor estate in any lands owned by Plaintiff and held by it under the aforesaid deed from Trenor W. Park Home dated January 15, 1887, upon which no betterments or permanent improvements have been placed at the expense of the Plaintiff by use of money donated by the State of Vermont or otherwise. 5. That the Plaintiff shall hold the proceeds of any conveyance pursuant to the foregoing authority in trust for the use and purposes set forth in its charter and in the aforesaid deed from Trenor W. Park Home dated January 15, 1887, and subject to further order of this court.” (d) Thus, the trustees hold title to the lands and buildings of the home, subject to the trust established by the original quitclaim deed, as modified by the 1964 decree. Under the terms of the decree, the trustees may convey title to unimproved land, with the concurrence of the attorney general, and must hold the funds obtained from the sale of land in trust for the purposes established by Act 180 and the quitclaim deed. If the trustees cease to operate the home for the benefit of veterans, then title to the real property would pass in accordance with the quitclaim deed, the decree, and any other pertinent provisions of law. (e) The general assembly amended Act 180 periodically, sometimes expanding the board’s powers and other times vesting additional authority in the state. In 1971, the general assembly renamed the corporation known as

JOURNAL OF THE HOUSE 344 “The Trustees of the Soldiers’ Home in Vermont” as “The Veterans’ Home in Vermont.” (f) In the years since the board of trustees was first incorporated, the trustees have performed many essential duties for the home and the state, including: (1) Overseeing the operations of the home. (2) Setting resident admissions policies. (3) Establishing committees necessary for the efficient and effective operation of the home. (4) Raising, holding, and disbursing funds. (5) A dvocating for the home and its residents and otherwise seeking the best care and services for residents of the home. (6) Selecting a commandant to serve as chief administrator of the home. (g) In the years since the general assembly first incorporated the trustees, the state has been involved with and has contributed to the home in many ways, including: (1) The home receives an annual appropriation which is recommended by the governor and appropriated by the general assembly. (2) The home annually submits a capital funding request for long-term maintenance, construction, renovation, and infrastructure improvements to the secretary of administration to be included in the governor’s capital request. (3) State employees, hired within the state classification system, staff the day-to-day operations of the home. (4) The commandant, as an “officer of the executive branch,” is entitled to receive the minimum starting salary set forth in 32 V.S.A. § 1003(b)(1)(JJ). (5) The trustees are entitled to receive compensation and expenses for those days they provide service on the board pursuant to 32 V.S.A. § 1010. (6) The department of buildings and general services assists the home to plan for and implement solutions to long-term and more immediate capital needs. (7) The home is statutorily “attached” to the agency of human services for administrative support pursuant to 3 V.S.A. § 3002(b). (h) By enacting 20 V.S.A. chapter 87, it is the intent of the general assembly to reflect the current status of the Vermont veterans’ home and its 345 THURSDAY, MAY 20, 2004 board of trustees and to clarify ambiguities created by the many uncodified sections of law addressing these entities. Sec. 79. No. 180 of the Acts of 1884, No. 184 of the Acts of 1888, No. 239 of the Acts of 1892, No. 419 of the Acts of 1910, No. 230 of the Acts of 1919, No. 170 of the Acts of 1943, No. 140 of the Acts of 1967, No. 53 of the Acts of 1971, Sec. 143 of No. 152 of the Acts of the 1999 Adj. Sess. (2000), and Sec. 151a of No. 63 of the Acts of 2001 are amended by codification as 20 V.S.A. chapter 87, which is added to read: CHAPTER 87. VERMONT VETERANS’ HOME § 1711. DEFINITIONS As used in this chapter: (1) “Board” means the Vermont veterans’ home board of trustees as set forth in section 1713 of this chapter. (2) “Gift” means the trust created by the quitclaim deed of the Trenor W. Park Home for Destitute Children and Women dated January 15, 1887, as modified by the May 27, 1964 decree of the Bennington County chancery court. (3) “Home” means the Vermont veterans’ home as set forth in section 1712 of this chapter. (4) “Trustees” means the individual members of the board. § 1712. VERMONT VETERANS’ HOME The Vermont veterans’ home is a body corporate and politic and a public instrumentality of the state. The exercise by the home of the powers conferred by this chapter constitute the performance of essential governmental functions of the state. § 1713. VERMONT VETERANS’ HOME BOARD OF TRUSTEES (a) The Vermont veterans’ home is governed by the Vermont veterans’ home board of trustees. (b) The board shall consist of 20 members, 15 of whom shall be veterans who have been honorably discharged from any branch of the United States armed services, to be appointed by the governor for staggered terms of three years. Each trustee shall serve until a successor has been appointed. In the event a trustee vacates the board, is unable to serve, or is removed for cause, the governor shall appoint another trustee to serve the unexpired term of the departing trustee.

JOURNAL OF THE HOUSE 346 (c) The board shall annually elect a president, a vice president, and a secretary from among its members. Eleven members shall constitute a quorum at all meetings; provided, however, if there is a vacancy on the board, the number of trustees constituting a quorum shall be one more than one-half the number of appointed trustees. (d) Pursuant to 32 V.S.A. § 1010, trustees who are not state employees shall be entitled to per diem and reimbursement for actual and necessary expenses incurred in connection with performing their duties under this chapter. § 1714. POWERS AND DUTIES OF THE BOARD OF TRUSTEES Except as otherwise provided in this chapter, the board shall have all powers necessary and convenient for governing the home, providing services to veterans, and otherwise performing its duties under this chapter, including the authority to: (1) Adopt policies, procedures, and bylaws regarding the operation of the board and the operation and management of the home. (2) Receive, hold, accept, manage, and convey any interest in real or personal property acquired by the home by gift, grant, purchase, devise, or otherwise for the purpose of managing the home and providing services to veterans and such members of their families as the board deems proper, under such conditions and regulations as the board may from time to time prescribe. Included within the powers granted by this subdivision, and notwithstanding any other contrary provision of law, is the authority to apply and administer the real or personal property to further the purposes of the home in accordance with the terms specified by gift, grant, or devise; provided that in the absence of specified terms, the board shall have the authority to apply and administer the property in the manner and for the purposes the board deems appropriate. Also included within the powers granted in this subdivision is the authority to hold title to the real property originally conveyed to the Trustees of the Soldiers Home in Vermont by the Trenor W. Park Home for Destitute Children and Women by quitclaim deed dated January 15, 1887, which shall be administered in the manner provided by the gift. (3) By written procedure, establish, revise, and collect charges for residential room and board. Charges collected under this subdivision shall be credited to special funds and shall be available to the home to offset the cost of providing services. (4) R ecommend for appointment by the governor a licensed nursing home administrator to serve as the commandant of the home. The 347 THURSDAY, MAY 20, 2004 commandant shall be appointed for an indefinite term and shall be subject to removal, after consultation with the governor, upon a majority vote of the board. The commandant shall be exempt from the state’s classified service. (5) Contract for professional services necessary and appropriate for accounting and managing gifts, grants, or devises acquired by the home in a manner consistent with 3 V.S.A. chapter 14 . (6) Contract for managerial and administrative services, provided the contract is reviewed and either renewed or renegotiated each year by the board in a manner consistent with 3 V.S.A. chapter 14 . (7) Contract with the federal Department of Veterans Affairs for services related to the purpose of the home. (8) Contract for the services of a medical director. (9) Contract for chaplain services. (10) Establish committees of the board as necessary for the efficient and effective operation of the home. (11) Adopt rules in accordance with 3 V.S.A. chapter 25 for the purpose of administering the provisions of this chapter. § 1715. PRESIDENT OF THE BOARD The president of the board shall: (1) Preside over all meetings of the board and ensure adherence to bylaws adopted by the board. (2) Act as agent of the home in the execution of all legal documents pertaining to the home, as authorized by the board. (3) Report to the governor at least once annually on all matters concerning the board and the home. (4) File annual audited financial statements with the commissioner of finance and management. § 1716. COMMANDANT The commandant shall be the chief administrative officer of the home and shall exercise general supervision over the business and affairs of the home. In addition to other duties, the commandant shall: (1) Attend meetings of the board and act as its treasurer. (2) Make reports concerning the home to the board at such times and in such detail as the board directs, together with recommendations the

JOURNAL OF THE HOUSE 348 commandant deems appropriate for the welfare and care of the residents of the home. (3) Report annually to the general assembly regarding the home’s budget. (4) Subject to approval of the board, appoint a deputy or an executive assistant, and a secretary, both of whom shall be appointed for an indefinite term and shall be subject to removal upon a majority vote of the board. These positions shall be exempt from the state’s classified service. (5) Subject to approval of the board, appoint a director of nursing services, a personnel manager, a finance manager, a facilities manager, and all other staff necessary for the efficient management of the home, all of whom shall be classified state employees subject to the provisions of Vermont statutes. (6) Supervise and direct all employees of the home and prescribe their duties not otherwise established by the board or by state or federal law. (7) Ensure that all laws, rules, regulations, and policies pertaining to the home are observed. (8) Prepare policies related to operation of the home, subject to approval by the board. (9) Collect all sums due and payable to the home and transfer the same to the state treasurer when received. (10) Perform such other duties as may be directed by the board to carry out the purposes of this chapter. § 1717. MANAGEMENT OF FUNDS (a) Notwithstanding the provisions of subdivision 1714(a)(2) of this chapter, all funds of the home not already managed in accordance with subchapter 1 of chapter 7 of Title 32, except residents’ funds as described in subsection (e) of this section, shall be transferred to the state treasurer to be credited to appropriate accounts established in compliance with subsection (b) of this section and 32 V.S.A. § 401(a). (b) There are created one or more special and permanent funds to be held in trust and administered pursuant to subchapter 5 of chapter 7 of Title 32. To these funds shall be credited those donations and endowments transferred to the state treasurer in subsection (a) of this section and any future donations and endowments to the home with and without specific restrictions on their use. Interest and earnings both prospectively and retrospectively earned on the funds created by this subsection shall be credited to the respective fund. The 349 THURSDAY, MAY 20, 2004 funds deposited pursuant to this subsection shall not be considered funds of the state and shall be used solely for the purposes of this chapter, subject to the terms and conditions of the gift and to the terms and conditions of the donation or endowment. (c) Monies from the funds established by this section may be expended by the home upon submission of vouchers, submitted at the direction and with the approval of the board, to the commissioner of finance and management in compliance with 32 V.S.A. § 463, and issuance of warrants pursuant to 32 V.S.A. §§ 461 and 465. The commissioner shall approve expeditiously any request for a release of funds if the request is in conformance with all applicable state law. (d) On no less than a quarterly basis, the treasurer shall provide a statement of account activity and fund balances to the board. (e) Notwithstanding subchapter 1 of chapter 7 of Title 32, the home is authorized to retain those funds when acting in a trustee capacity for individual residents of the home. Establishment and maintenance of accounts for this purpose shall be pursuant to 32 V.S.A. § 431 and any other relevant provisions of law. (f) Notwithstanding 32 V.S.A. § 5(a)(3), the $1,000.00 limit for reporting pursuant to that subdivision shall be $10,000.00 as applied to the home. § 1718. [RESERVED.] § 1719. LEGAL ACTIONS (a) Except for purposes of collecting charges due under subdivision 1714(a)(3) of this title, the board shall have no independent authority to sue, be sued, complain, or defend in its own name or on behalf of the home. The attorney general shall represent the board and the home in all civil actions as provided by law. Outside legal counsel may be obtained with the concurrence of the attorney general. (b) Each trustee shall be considered a “state employee” for purposes of 3 V.S.A. chapter 29 and an “employee of the state” for purposes of 12 V.S.A. chapter 189.

JOURNAL OF THE HOUSE 350 (c) The home shall be entitled to the sovereign immunity of the state, except as waived by the state in 12 V.S.A. chapter 189 or in any other provision of law. § 1720. DEPARTMENT OF BUILDINGS AND GENERAL SERVICES Unless otherwise directed by the general assembly, the commissioner of buildings and general services, after consultation with and concurrence of the board, shall: (1) Supervise the engineering, construction, improvement, repair, alteration, demolition, and replacement of and addition to buildings, structures, and facilities of the home. (2) Solicit bids and award contracts for the performance of engineering services for specific projects at the home. Sec. 80. COMPOSITION OF VERMONT VETERANS’ HOME BOARD OF TRUSTEES The members of the Vermont veterans’ home board of trustees set forth in Sec. 79 of this act shall be those trustees serving terms on the board as it exists on the effective date of this act, who shall serve for the unexpired remainder of their respective terms. Sec. 81. REPEAL 3 V.S.A. § 3095 (veterans’ home may charge for room and board) is repealed in its entirety. * * * Public Safety * * * Sec. 82. 24 V.S.A. § 1938(a) is amended to read: (a) Municipalities as defined in section 2001 of this title Cities, towns, incorporated villages, the University of Vermont, sheriffs, and state agencies may enter into agreements to provide for intermunicipal police services. Intermunicipal police services include general police services, emergency planning and assistance, task forces, and other specialized investigative units to provide police services within the boundaries of the participating municipalities and counties. This section shall only be applicable to such specialized investigative units or task forces and shall not apply to arrangements for basic or general police services. Sec. 83. 24 V.S.A. § 1938(d) is added to read: (d) Cities, towns, incorporated villages, the University of Vermont, sheriffs, and state agencies may enter into agreements under this section with 351 THURSDAY, MAY 20, 2004 municipalities in the same or adjoining counties and with municipalities in adjoining states. Sec. 84. 20 V.S.A. chapter 8 is added to read: CHAPTER 8. INTERNATIONAL EMERGENCY MANAGEMENT ASSISTANCE COMPACT § 201. INTERNATIONAL EMERGENCY MANAGEMENT ASSISTANCE COMPACT; ADOPTION The state of Vermont adopts the international emergency management assistance compact as provided in this chapter. § 202. PURPOSE AND AUTHORITIES – Article I (a) The International Emergency Management Assistance Memorandum of Understanding, hereinafter referred to as the “compact,” is made and entered into by and among such of the jurisdictions as shall enact or adopt this compact, hereinafter referred to as “party jurisdictions.” For the purposes of this agreement, the term “jurisdictions” may include any or all of the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut and the provinces of Quebec, New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland, and such other states and provinces as may hereafter become a party to this compact. (b) The purpose of this compact is to provide for the possibility of mutual assistance among the jurisdictions entering into this compact in managing any emergency or disaster when the affected jurisdiction or jurisdictions ask for assistance, whether arising from natural disaster, technological hazard, manmade disaster, or civil emergency aspects of resource shortages. (c) This compact also provides for the process of planning mechanisms among the agencies responsible and for mutual cooperation, including, if need be, emergency-related exercises, testing, or other training activities using equipment and personnel simulating performance of any aspect of the giving and receiving of aid by party jurisdictions or subdivisions or party jurisdictions during emergencies, with such actions occurring outside actual declared emergency periods. Mutual assistance in this compact may include the use of emergency forces by mutual agreement among party jurisdictions. § 203. GENERAL IMPLEMENTATION – Article II (a) Each party jurisdiction entering into this compact recognizes that many emergencies may exceed the capabilities of a party jurisdiction, and that intergovernmental cooperation is essential in such circumstances. Each jurisdiction further recognizes that there will be emergencies that may require

JOURNAL OF THE HOUSE 352 immediate access and present procedures to apply outside recourses to make a prompt and effective response to such an emergency because few, if any, individual jurisdictions have all the resources they need in all types of emergencies or the capability of delivering resources to areas where emergencies exist. (b) The prompt, full, and effective utilization of resources of the participating jurisdictions, including any resources on hand or available from any other source that are essential to the safety, care, and welfare of the people in the event of any emergency or disaster, shall be the underlying principle on which all articles of this compact are understood. (c) On behalf of the party jurisdictions participating in the compact, the legally designated official who is assigned responsibility for emergency management is responsible for formulation of the appropriate interjurisdictional mutual aid plans and procedures necessary to implement this compact, and for recommendations to the jurisdiction concerned with respect to the amendment of any statutes, regulations, or ordinances required for that purpose. § 204. PARTY JURISDICTION RESPONSIBILITIES – Article III (a) Formulate plans and programs. It is the responsibility of each party jurisdiction to formulate procedural plans and programs for interjurisdictional cooperation in the performance of the responsibilities listed in this section. In formulating and implementing such plans and programs the party jurisdictions, to the extent practical, shall: (1) Review individual jurisdictional hazards analyses that are available and, to the extent reasonably possible, determine all those potential emergencies the party jurisdictions might jointly suffer, whether due to natural disaster, technological hazard, manmade disaster, or emergency aspects of resource shortages; (2) Initiate a process to review party jurisdictions’ individual emergency plans and develop a plan that will determine the mechanism for the interjurisdictional cooperation; (3) Develop interjurisdictional procedures to fill any identified gaps and to resolve any identified inconsistencies or overlaps in existing or developed plans; (4) Assist in warning communities adjacent to or crossing jurisdictional boundaries; 353 THURSDAY, MAY 20, 2004 (5) Protect and ensure delivery of services, medicines, water, food, energy and fuel, search and rescue and critical lifeline equipment, services, and resources, both human and material to the extent authorized by law; and (6) Inventory and agree upon procedures for the interjurisdictional loan and delivery of human and material resources, together with procedures for reimbursement or forgiveness. (b) Request assistance. The authorized representative of a party jurisdiction may request assistance of another party jurisdiction by contacting the authorized representative of that jurisdiction. These provisions only apply to requests for assistance made by and to authorized representatives. Requests may be oral or in writing. If oral, the request must be confirmed in writing within 15 days of the oral request. Requests must provide the following information: (1) A description of the emergency service function for which assistance is needed and of the mission or missions, including but not limited to fire services, emergency medical services, transportation, communications, public works and engineering, building inspection, planning and information assistance, mass care, resource support, health and medical services, and search and rescue; (2) The amount and type of personnel, equipment, materials, and supplies needed and a reasonable estimate of the length of time they will be needed; and (3) The specific place and time for staging of the assisting party’s response and a point of contact at the location. (c) Consultation among party jurisdiction officials. There shall be frequent consultation among the party jurisdiction officials who have assigned emergency management responsibilities, such officials collectively known hereinafter as the International Emergency Management Group, and other appropriate representatives of the party jurisdictions with free exchange of information, plans, and resource records relating to emergency capabilities to the extent authorized by law. § 205. LIMITATION – Article IV Any party jurisdiction requested to render mutual aid or conduct exercise and training for mutual aid shall undertake to respond as soon as possible, except that it is understood that the jurisdiction rendering aid may withhold or recall resources to the extent necessary to provide reasonable protection for that jurisdiction. Each party jurisdiction shall afford to the personnel of the emergency forces of any party jurisdiction, while operating within its

JOURNAL OF THE HOUSE 354 jurisdictional limits under the terms and conditions of this compact and under the operational control of an officer of the requesting party, the same powers, duties, rights, privileges, and immunities as are afforded similar or like forces of the jurisdiction in which they are performing emergency services. Emergency forces continue under the command and control of their regular leaders, but the organizational units come under the operational control of the emergency services authorities of the jurisdiction receiving assistance. These conditions may be activated, as needed, by the jurisdiction that is to receive assistance or upon commencement of exercises or training for mutual aid and continue as long as the exercises or training for mutual aid are in progress, the emergency or disaster remains in effect, or loaned resources remain in the receiving jurisdiction or jurisdictions, whichever is longer. The receiving jurisdiction is responsible for informing the assisting jurisdictions of the specific moment when services will no longer be required. § 206. LICENSES AND PERMITS – Article V Whenever a person holds a license, certificate, or other permit issued by any jurisdiction party to the compact evidencing the meeting of qualifications for professional, mechanical, or other skills, and when such assistance is requested by the receiving party jurisdiction, such person is deemed to be licensed, certified, or permitted by the jurisdiction requesting assistance to render aid involving such skill to meet an emergency or disaster, subject to such limitations and conditions as the requesting jurisdiction prescribes by executive order or otherwise. § 207. LIABILITY – Article VI Any person or entity of a party jurisdiction rendering aid in another jurisdiction pursuant to this compact is considered an agent of the requesting jurisdiction for tort liability and immunity purposes. Any person or entity rendering aid in another jurisdiction pursuant to this compact is not liable on account of any act or omission in good faith on the part of such forces while so engaged or on account of the maintenance or use of any equipment or supplies in connection therewith. Good faith in this article does not include willful misconduct, gross negligence, or recklessness. § 208. SUPPLEMENTARY AGREEMENTS – Article VII Because it is probable that the pattern and detail of the machinery for mutual aid among two or more jurisdictions may differ from that among the jurisdictions that are party to this compact, this compact contains elements of a broad base common to all jurisdictions, and nothing in this compact precludes any jurisdiction from entering into supplementary agreements with another jurisdiction or affects any other agreements already in force among 355 THURSDAY, MAY 20, 2004 jurisdictions. Supplementary agreements may include but are not limited to provisions for evacuation and reception of injured and other persons and the exchange of medical, fire, public utility, reconnaissance, welfare, transportation and communications personnel, equipment, and supplies. § 209. WORKERS’ COMPENSATION AND DEATH BENEFITS – A rticle VIII Each party jurisdiction shall provide in accordance with its own laws for the payment of workers’ compensation and death benefits to injured members of the emergency forces of that jurisdiction and to representatives of deceased members of those forces if the members sustain injuries or are killed while rendering aid pursuant to this compact, in the same manner and on the same terms as if the injury or death were sustained within its own jurisdiction. § 210. REIMBURSEMENT – Article IX Any party jurisdiction rendering aid in another jurisdiction pursuant to this compact shall, if requested, be reimbursed by the party jurisdiction receiving such aid for any loss or damage to or expense incurred in the operation of any equipment and the provision of any service in answering a request for aid and for the costs incurred in connection with those requests. An aiding party jurisdiction may assume in whole or in part any such loss, damage, expense, or other cost or may loan such equipment or donate such services to the receiving party jurisdiction without charge or cost. Any two or more party jurisdictions may enter into supplementary agreements establishing a different allocation of costs among those jurisdictions. Expenses under Article VIII of this compact are not reimbursable under this section. § 211. EVACUATION – A rticle X Each party jurisdiction shall initiate a process to prepare and maintain plans to facilitate the movement of and reception of evacuees into its territory or across its territory, according to its capabilities and powers. The party jurisdiction from which the evacuees came shall assume the ultimate responsibility for the support of the evacuees, and after the termination of the emergency or disaster, for the repatriation of such evacuees. § 212. IMPLEMENTATION – A rticle XI (a) This compact is effective upon its execution or adoption by any two jurisdictions, and is effective as to any other jurisdiction upon its execution or adoption thereby, subject to approval or authorization by the U.S. Congress, if required, and subject to enactment of the provincial or state legislation that may be required for the effectiveness of the memorandum of understanding.

JOURNAL OF THE HOUSE 356 (b) Any party jurisdiction may withdraw from this compact, but the withdrawal does not take effect until 30 days after the governor or premier of the withdrawing jurisdiction has given notice in writing of such withdrawal to the governors or premiers of all other party jurisdictions. The action does not relieve the withdrawing jurisdiction from obligations assumed under this compact prior to the effective date of withdrawal. (c) Duly authenticated copies of this compact in the French and English languages and of such supplementary agreements as may be entered into shall, at the time of their approval, be deposited with each of the party jurisdictions. § 213. SEVERABILITY – A rticle XII This compact is construed to effectuate the purposes stated in Article I of this compact. If any provision of this compact is declared unconstitutional or the applicability of the compact to any person or circumstances is held invalid, the validity of the remainder of this compact and the applicability of the compact to other persons and circumstances are not affected. § 214. INCONSISTENCY OF LANGUAGE – A rticle XIII The validity of the arrangements and agreements consented to in this compact shall not be affected by any insubstantial difference in form or language as may be adopted by the various states and provinces. § 215. AMENDMENT – A rticle XIV This compact may be amended by agreement of the party jurisdictions. Sec. 85. CRIMINAL JUSTICE TRAINING COUNCIL; STUDY There is created a committee comprised of the commissioner of public safety, the executive director of the Vermont criminal justice training council, the president of the Vermont sheriffs’ association, the president of the Vermont police association, and the president of the Vermont association of chiefs of police, or their designees, to consider options for ensuring that law enforcement training courses are available to individuals in all regions of the state. The executive director of the Vermont criminal justice training council shall convene the first meeting of the committee on or before July 1, 2004. On or before January 15, 2005, the committee shall file a report with the house and senate committees on institutions detailing its findings and recommendations. Sec. 86. ST. ALBANS; VERMONT STATE POLICE FACILITY (a) Subject to the approval required in subsection (c) of this section, the commissioner of buildings and general services is authorized to enter into a development agreement with a private developer to construct a state police facility in St. Albans on land to be purchased and held in the name of the state 357 THURSDAY, MAY 20, 2004 of Vermont by the department of buildings and general services. All construction shall conform to state specifications for the state police facility prototype. (b) The structure of the development agreement shall include an operating lease in a form that it is consistent with generally accepted accounting principles and not considered as state supported debt by any of the independent rating agencies. The commissioner is authorized to enter into a ground lease with the developer for the land utilized by the barracks for a term equivalent to the operating lease if the proposal is otherwise approved pursuant to subsection (c) of this section. (c) The commissioner shall present the proposed project, financing alternatives, development agreement, and proposed financing plan to a five- member committee for review and approval. The committee shall be comprised of two senators selected by the committee on committees, two representatives selected by the speaker of the house of representatives, and a fifth, neutral individual, who shall not be a legislator and shall be jointly selected by the speaker of the house of representatives and the president pro tempore of the senate. The committee may approve or reject the project, or approve the project with modifications. The state treasurer and secretary of administration shall agree on the content of the development agreement and financing plan before they are presented to the committee for review and approval and prior to execution by the commissioner or contact with any credit rating agencies on the financing plan by the developer. Any such agreement shall include a provision that the operating lease may be terminated by the state at any point that sufficient funds are available to purchase the barracks at fair market value. (d) Notwithstanding any provision of law to the contrary, the commissioner shall, based on objective criteria developed by the commissioner, select not more than four and no less than two private developers to bid on the project. The commissioner shall use a best value analysis to recommend which bid should be approved. No bid shall be deemed accepted or awarded unless first approved pursuant to subsection (c) of this section. * * * Agriculture * * * Sec. 87. 6 V.S.A. § 1031 is amended to read: § 1031. FUNCTIONS OF SECRETARY OF AGRICULTURE, FOOD AND MARKETS AND COMMISSIONER OF FORESTS, PARKS AND RECREATION, COOPERATION Under the provisions of this chapter, the secretary of agriculture, food and markets shall have jurisdiction over plans for the survey, detection, and

JOURNAL OF THE HOUSE 358 management of agricultural plant pests, and the commissioner of forests, parks and recreation over plans for the survey, detection, and management of forest pests. When the word “secretary” is used in sections 1033 and 1034 of this title, it shall mean either the secretary of agriculture, food and markets or the commissioner of forests, parks and recreation. The two officials shall cooperate with each other on jointly operated projects to avoid duplication of efforts or duties. Sec. 88. 32 V.S.A. § 9741 is amended to read: § 9741. SALES NOT COVERED 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. * * * (3) Agriculture feeds, seed, plants, baler twine, recyclable silage bags and, agricultural wrap obtained from a dealer who accepts used silage bags and wrap for recycling, sheets of plastic for bunker covers, liming materials, breeding and other livestock, semen breeding fees, baby chicks, turkey poults, agriculture chemicals other than pesticides, veterinary supplies, and bedding; and fertilizers and pesticides for use and consumption directly in the production for sale of tangible personal property on farms, including stock, dairy, poultry, fruit and truck farms, orchards, nurseries, or in greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities for sale. * * * * * * Vermont Economic Development Authority; Agricultural Credit Program; Direct Mortgage Loans * * * Sec. 89. 10 V.S.A. § 374b(14) is amended to read: (14) “Resident” means a person who is or will be domiciled in this state as evidenced by an intent to maintain a principal dwelling place in the state indefinitely and to return there if temporarily absent, coupled with an act or acts consistent with that intent, including but not limited to the filing of a Vermont income tax return within 18 months of the application for a loan under this chapter. In the case of a limited liability company, partnership, corporation or other business entity, resident means a business entity formed under the laws of Vermont, and the majority of which is owned and operated by Vermont residents who are natural persons. Sec. 90. 10 V.S.A. § 263(a) is amended to read: 359 THURSDAY, MAY 20, 2004 (a) When it has been determined by the authority that the establishment or expansion of a particular eligible facility will accomplish the public purposes of this act, the authority may contract to loan to the mortgagor an amount not in excess of forty 40 percent of the cost of such eligible facility, provided that the authority has found that a local development corporation holds funds or property in an amount or value equal to not less than ten percent of the amount which the authority proposes to loan or less than ten percent of the cost of the project, as the authority determines, which funds or property are available for and shall be applied to meeting the cost of the project. In addition, the authority shall have determined that the mortgagor has obtained from other independent and responsible sources, such as banks and insurance companies or otherwise, a firm commitment for all other funds, over and above the loan of the authority and such funds or property as the local development corporation may hold, necessary for payment of all of the cost of the project, and that the sum of all these funds, together with any funds, machinery, and equipment to be provided by the mortgagor is adequate for the completion and operation of the project. Sec. 91. 10 V.S.A. § 211 is amended to read: § 211. LEGISLATIVE FINDINGS (a) The legislature finds that it is necessary to alleviate and prevent unemployment and underemployment and to raise the per capita income within the state, that the development and increase of industry, including the further processing of agricultural products, within the state will promote the prosperity and general welfare of all citizens, and that this chapter is necessary and desirable in order to accomplish these purposes. The legislature also finds that it is necessary and desirable to encourage the development, production, and distribution of renewable energy resources within the state. * * * (c) Therefore, the general public advantage requires: * * * (7) Low-cost capital to assist Vermont family farmers to farm as provided in section 272(a)(3) of this title; and (8) Low-cost capital available for the purchase of land, buildings, and equipment to process Vermont milk, including the processing of milk into cheese, yogurt, or other value-added milk products; and (9) Low-cost capital to assist the wood products enterprises to provide an adequate supply of mill quality chips for Vermont public and private schools and other entities that rely upon wood as a primary source of heating.

JOURNAL OF THE HOUSE 360 * * * Corrections Policy * * * Sec. 92. NORTHWEST STATE CORRECTIONAL FACILITY; D-1 WING The department of corrections shall not use space within the so-called D-1 Wing of the Northwest State Correctional Facility in St. Albans for any purpose other than as storage or as office space unless the temperature within all individual D-1 wing cells is at all times greater than 59 degrees Fahrenheit. * * * Fire Service; Fees * * * Sec. 93. FIRE SERVICES; AUTOMOBILE ACCIDENTS; FEES; STUDY (a) In order to develop new options to assure long-term financial stability for the state’s municipal fire departments and fire districts, there is created a committee to examine ways in which fees can be charged for the performance of fire suppression, fire prevention, investigations, or rescues by a municipal fire department in connection with motor vehicle incidents, consisting of: (1) T he commissioner of banking, insurance, securities, and health care administration or the commissioner’s designee. (2) The commissioner of finance and management or the commissioner’s designee. (3) A representative of the Vermont Fire Service Training Council. (4) A representative of the Vermont Fire Chiefs’ Association. (5) A representative of the Vermont State Firefighters Association. (6) A representative of the Vermont Career Fire Chiefs Association. (7) A representative of the Vermont Service Coalition. (8) A representative of the Professional Firefighters Association of Vermont. (9) The executive director of the Vermont League of Cities and Towns or the executive director’s designee. (b) T he commissioner of banking, insurance, securities, and health care administration shall convene the first meeting of the committee which shall occur no later than 30 days after the effective date of this act. (c) On or before January 15, 2005, the committee shall submit a report of its findings and recommendations for legislation to the house and senate committees on institutions. * * * Energy Infrastructure; Rockingham * * * 361 THURSDAY, MAY 20, 2004 Sec. 94. 30 V.S.A. chapter 14 is redesignated to read: CHAPTER 14. CITY OF BURLINGTON AND, VILLAGE OF LYNDONVILLE AND TOWN OF ROCKINGHAM ACQUISITION OF FACILITIES Sec. 95. 30 V.S.A. § 604 is amended to read: § 604. ADDITIONAL AUTHORITY (a) Notwithstanding any contrary provision of any general or special law relating to the powers and authorities of electric utilities or any limitation imposed by their charters, the city of Burlington and, the village of Lyndonville acting through its board of trustees, and the town of Rockingham shall each have the following additional powers: (1) jointly or separately to plan, finance, construct, purchase, operate, maintain, use, share costs of, own, mortgage, lease, sell, dispose of or otherwise participate in electric power generating and transmission facilities or portions thereof within or without the state or the product or service therefrom or securities issued in connection with the financing of such facilities or portions thereof; (2) to enter into and perform contracts for such joint or separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, disposal of or other participation in electric power generating and transmission facilities, or portions thereof, within or without the state of the product or service therefrom, or securities issued in connection with the financing of electric power facilities or portions thereof, including, without limitation, contracts for the payment of obligations imposed without regard to the operational status of a facility or facilities and contracts for the sale or purchase of electricity from an electric power facility or facilities for long or short periods of time or for the life of a specific electric generating unit or units. (b) Other electric utilities, whether cooperative, municipal or privately owned, may enter into and perform contracts with the city of Burlington for the purposes of this section. The provisions of this chapter shall not otherwise affect the jurisdiction of the public service board regarding the activities of the Burlington electric light department and of the village of Lyndonville electric light department, or any municipal utility formed by the town of Rockingham, within the state of Vermont. (c) Cooperative and municipal electric utilities, in accordance with chapter 83 of this title, and other electric utilities may enter into and perform contracts

JOURNAL OF THE HOUSE 362 with the city of Burlington and, the village of Lyndonville, and the town of Rockingham for the purposes of this section. (d) The town of Rockingham shall have the authority, if duly authorized by its voters in accordance with the procedures set forth in chapter 79 of this title for the formation of a municipal utility, whether such vote or authorization occurs before or after the effective date of this section, and after obtaining a certificate of public good pursuant to section 248 of this title, to acquire, own, and operate the hydroelectric generating facilities located at Bellows Falls, Vermont, notwithstanding the fact the output of such facilities may exceed the electric needs of the town and its municipal utility, and to sell that portion of the output of such facilities that exceeds the needs of the town in serving its own municipal utility and such municipal utility’s own customers. The town shall not have the authority to acquire the hydroelectric generating facilities located at Bellows Falls, Vermont by eminent domain for a period of ten years commencing on January 1, 2005. In selling any of the output of such generating facilities, the town of Rockingham shall not have the authority to seek or obtain treatment as a “qualifying facility” under 18 C.F.R. § 292.201- 207 or subdivision 209(a)(8) of this title, and Rockingham shall not have the authority to own or operate such facilities or a portion of such facilities if such facilities otherwise obtain treatment as a “qualifying facility.” Sec. 96. 30 V.S.A. §§ 605, 606, and 607 are amended to read: § 605. CONTRACTS Contracts under section 604 of this title may be for a term or for an indefinite period; may provide for the sale or other disposition of by-products byproducts of electric power facilities; and may contain provisions for arbitration, delegation and other matters deemed necessary or desirable to carry out their purposes. Any party, public or private, desiring to purchase or use by-products byproducts of electric power facilities financed, constructed or operated under this chapter may enter into contracts therefor for short or long terms. The obligation of the city and, village, and town under contracts referred to in this section shall not be included in the debt of the city and, village, and town for the purpose of ascertaining its borrowing capacity. § 606. TENANCY IN COMMON If the city of Burlington, or the village of Lyndonville, or the town of Rockingham acquires or owns an interest as a tenant in common with one or more other electric utilities in any electric power facilities, the surrender or waiver by any party of its right to partition such property for a period not exceeding the period for which the property is used or useful for electric utility 363 THURSDAY, MAY 20, 2004 purposes shall not be invalid or unenforceable by reason of the length of such period, or as unduly restricting the alienation of such property. § 607. CONSENT TO APPLICATION OF LAWS OF OTHER STATES (a) Legislative consent is hereby given to the application of the laws of other states with respect to taxation, payments in lieu of taxes, and the assessment thereof to the city of Burlington or, the village of Lyndonville, or the town of Rockingham, to the extent either that any such municipality acquires or has an interest in an electric power facility, real or personal, situated without outside the state or to the extent it owns or operates electric power facilities without outside the state pursuant to authority granted in this chapter. (b) Legislative consent is hereby given to the application of regulatory and other laws of other states and of the United States to the city of Burlington or, the village of Lyndonville or the town of Rockingham to the extent it owns or operates electric power facilities without the state pursuant to authority granted in this chapter. * * * Sec. 97. 30 V.S.A. § 610 is added to read: § 610. BONDING AUTHORITY– TOWN OF ROCKINGHAM (a) The town of Rockingham, when authorized as provided in chapter 53 of Title 24, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to subsection 604(d) of this title. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of facilities under this chapter, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs, and all other expenses incidental to the determination of the feasibility of any project, or to carrying out the project, or to placing the project in operation. (b) The obligations shall be issued in accordance with chapter 53 of Title 24. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the town.

JOURNAL OF THE HOUSE 364 (c) The bonding authority of the town of Rockingham set forth by this section shall be subject to the following: (1) The town of Rockingham shall not incur indebtedness in order to support the acquisition of the hydroelectric facility specified in subsection 604(d) of this title except in the form of bonds issued under subchapter 2 of chapter 53 of Title 24, payable solely from the net revenues from that hydroelectric facility, nor shall the town have the authority to use the Vermont Municipal Bond Bank to assist with the town’s acquisition of that hydroelectric facility; provided, however, the foregoing limitations shall not restrict the town from using whatever financing options, or combinations of financing options, otherwise legally available to it for purposes of acquiring, repairing, improving, or maintaining any other parts of a municipal plant as defined in chapter 79 of Title 30, or for purposes of repairing, improving, or maintaining the hydroelectric facility after the town owns the hydroelectric facility. (2) Revenue bonds issued for purposes of the town’s acquisition of the hydroelectric facility shall not be deemed to constitute a debt or liability or obligation of the town, the state, or of any political subdivision of it, nor shall those revenue bonds be deemed to constitute a pledge of the faith and credit of the town, the state, or of any political subdivision, but shall be payable solely from the revenues from the hydroelectric facility. Any revenue bond issued by the town to support the town’s acquisition of the hydroelectric facility shall contain on its face a statement to the effect the town shall not be obligated to pay the same nor the interest on it, except from the revenues or assets pledged for those purposes, and neither the faith and credit nor the taxing power of the town, the state, or of any political subdivision of it is pledged to the payment of the principal of or the interest on such obligations. (3) The state does hereby pledge to agree with the holders of the notes and bonds issued under this section that the state will not limit or restrict the rights hereby vested in the town to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes. Neither will the state in any way impair the rights and remedies of the holders until the notes and bonds, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The town is authorized to execute this pledge and agreement of the state in any agreement with the holders of the notes or bonds. Sec. 98. 30 V.S.A. § 611 is added to read: §611. LIABILITY OF THE STATE; IMMUNITY No provision of this chapter shall constitute a waiver of sovereign immunity of the state. The state of Vermont shall not be liable for injury to 365 THURSDAY, MAY 20, 2004 persons or property or loss of life caused by the negligent or wrongful act or omission of the town of Rockingham or any of the town’s agents or employees in the maintenance or operation of the hydro-electric facilities specified in subsection (d) of section 604 of this title. Sec. 99. 30 V.S.A. § 2909 is amended to read: § 2909. HEARING BEFORE BOARD ON FAILURE TO AGREE If the municipality does not ratify such agreement for the purchase in the manner provided in section 2908 of this title or if the price cannot be agreed upon or if it cannot be agreed as to how much, if any, of such plant and property lying without such municipality the public interest requires such municipality to purchase, either the municipality or the utility may petition the board for a determination of these questions. The board, after proper notice and hearing, shall decide the amount of just compensation and any other matters in dispute, and shall also, when required to fix the price to be paid for such plant and property, determine the amount of damages, if any, caused by the severance of the plant and property proposed to be purchased from the other plant and property of the utility. The board shall make its determinations on or before 12 months after the filing of the petition. The board may extend the time for determination an additional six months upon agreement of all of the parties or, absent such an agreement, upon a finding by the board, after notice and hearing, that such an extension is necessary to prevent injustice to one or more of the parties. From such determinations, there shall be the right of appeal to the supreme court on all matters involved as provided in chapter 1 of this title. Sec. 100. 32 V.S.A. § 5404b is amended to read: § 5404b. HYDRO-ELECTRIC PROPERTY; CONSERVATION EASEMENTS; TRANSFERS Notwithstanding any other provision of law, including the provisions of 32 V.S.A. § subdivisions 3481(1), and the provisions of 32 V.S.A. § 3802(1) of this title: (1) any real property subject to conservation easements granted pursuant to the terms of any agreement executed on or after January 1, 1997 between companies owning real property used for hydro-electric generation in this state and the state of Vermont shall continue to be assessed and property taxes collected as if such property were not subject to such easements; and (2) any real property purchased by the state pursuant to the terms of any agreement executed on or after January 1, 1997 between companies owning real property used for hydro-electric generation in this state and the state of

JOURNAL OF THE HOUSE 366 Vermont, which property continues to be owned by the state, or by some successor owner which would otherwise be exempt from property taxes, shall continue to be assessed and property taxes collected as if such property were not so purchased by the state; and (3) any real property and fixtures used for hydro-electric generation and purchased by the town of Rockingham on or after January 1, 2002, which property and fixtures continue to be owned by the town of Rockingham and used for purposes of hydro-electric generation, shall continue to be listed on the education property tax grand list and assessed as if such property were not so purchased by the town of Rockingham. The town shall, in lieu of property taxes, pay to any governmental body authorized to levy property taxes the amount which would be assessable as property taxes on the real and tangible personal property if that property were the property of a utility. These payments shall be due, and bear interest if unpaid, as in the case of taxes on the property of a utility. For purposes of these payments in lieu of taxes, the assessors of the taxing authority shall make a valuation and assessment of the property, and determine the tax that would be assessable if the property were owned by a utility. Payments in lieu of taxes made under this chapter shall be treated in the same manner as taxes for the purposes of all procedural and substantive provisions of law, including appeals, now and hereinafter in effect applicable to assessment and taxation of real and personal property, collection and abatement of these taxes, and the raising of public revenues. * * * Energy Infrastructure; Vermont Power Authority * * * Sec. 101. 30 V.S.A. chapter 90 is added to read: CHAPTER 90. VERMONT HYDRO-ELECTRIC POWER AUTHORITY § 8051. FINDINGS, PURPOSE, AND GOALS (a) The general assembly of the state of Vermont finds: (1) Potential exists to purchase an interest in hydroelectric power stations along the Connecticut and Deerfield Rivers located in Vermont, New Hampshire, and Massachusetts. (2) The general assembly created the Vermont Renewable Power Supply Acquisition Authority (VRPSAA) in Sec. 38 of No. 63 of the Acts of 2003 to investigate such a purchase and the VRPSAA has taken actions towards that goal. (b) Therefore, it is the purpose of this chapter to create an entity with the authority to finance, purchase, own, operate, or manage any interest in the hydroelectric power facilities along the Connecticut and Deerfield Rivers 367 THURSDAY, MAY 20, 2004 located in Vermont, New Hampshire and Massachusetts, and to sell the electric energy under the control of the authority from those facilities at wholesale to authorized wholesale purchasers. The purchase and operation of an interest shall be pursued with the following goals: (1) To promote the general good of the state; (2) To stimulate the development of the Vermont economy; (3) To increase the degree to which Vermont’s energy needs are met through environmentally - sound sustainable and renewable in-state energy sources; (4) To lessen electricity price risk and volatility for Vermont ratepayers and increase system reliability; (5) Not to compete with Vermont utilities; (6) To ensure that the credit rating of the state will not be adversely affected and Vermont taxpayers will not be liable should the project fail because of the failure to produce sufficient revenue to service the debt, the failure of a partner, or for any other reason; and (7) To cause the project to be operated in an environmentally sound manner consistent with federal licenses and purposes. § 8052. DEFINITIONS As used in this chapter: (1) “Authority” means the Vermont Hydro-electric Power Authority established by this chapter. (2) "Project" means the right to the sale at wholesale, exchange, or interchange of the hydroelectric energy, capacity or output produced by or at the hydroelectric power stations along the Connecticut and Deerfield Rivers located in Vermont, New Hampshire, and Massachusetts (3) “Facilities” means the hydroelectric power stations and related assets along the Connecticut and Deerfield Rivers located in Vermont, New Hampshire, and Massachusetts in which the authority has acquired an equity interest. § 8053. AUTHORITY; CREATION AND ORGANIZATION (a) The Vermont Hydro-electric Power Authority is created and established as a body corporate and politic and a public instrumentality of the state. The exercise by the authority of the powers conferred upon it constitutes the performance of essential governmental functions.

JOURNAL OF THE HOUSE 368 (b) The powers of the authority shall be exercised by seven directors appointed as follows: (1) Five directors shall be appointed by the governor with the advice and consent of the senate, at least one of whom shall represent retail customers. No director appointed by the governor, while serving as a director, shall be an employee, board member or director, or have a substantial ownership interest in an electric company regulated by the public service board or the department of public service under this title. The directors appointed by the governor shall be appointed for terms of five years and until their successors are appointed and confirmed, except that the first directors shall be appointed in the following manner: one for a term of two years, two for a term of three years, and two for a term of five years. The governor for cause may remove a director appointed by a governor. The governor may fill any vacancy occurring among the directors appointed by a governor for the balance of the unexpired term. A director may be reappointed. (2) The state treasurer, who shall serve ex officio; and (3) One director shall be a representative of the department of public service, appointed by the commissioner, who shall serve at the pleasure of the commissioner. (c) The authority shall elect a chair, a vice chair, and a treasurer from among its directors. A quorum shall consist of four directors. No action of the authority shall be considered valid unless the action is supported by a majority vote of the directors present and voting and then only if at least four directors vote in favor of the action. (d) Directors shall be compensated for necessary expenses incurred in the performance of their duties in the manner provided by section 1010 of Title 32. (e) The governor or the governor’s designee shall have the power to appoint an interim manager upon enactment of this chapter, who shall serve at the governor’s pleasure, under the governor’s direction, and for compensation established by the governor. The interim manager, with the approval of the governor or the governor’s designee, shall have full authority to take all actions authorized under this chapter to protect and advance the interests of the state of Vermont until such time as a manager employed pursuant section 8054 of this chapter has assumed office. (f) The authority shall continue so long as it shall have any obligations or indebtedness outstanding and until its existence is terminated by law. Upon termination of the authority, title to all of the property owned by the authority shall vest in the state. The state reserves the right to change or terminate the 369 THURSDAY, MAY 20, 2004 authority and any structure, organization, program, or activity of the authority, subject to constitutional limitations. (g) The authority’s board of directors shall adopt bylaws or other rules and regulations for the management of the affairs of the authority and carrying out the purposes of this chapter. (h) The net earnings of the authority, beyond those necessary for retirement of its notes, bonds, or other obligations or indebtedness or to implement the public purposes and programs authorized in this chapter, shall not inure to the benefit of any person other than the state. (i) Despite any law or charter provision to the contrary, a director or officer of the authority who is also an officer, employee, or member of a legislative body of a municipality or other public body or of the state shall not thereby be precluded from voting or acting on behalf of the authority on a matter involving the municipality or public body or the state. § 8054. MANAGER The authority shall employ and compensate a manager who shall serve under a contract for a specific term or at the pleasure of the authority. The authority, with the governor’s approval, shall fix the manager’s compensation. The manager shall be the chief executive officer of the authority and shall administer, manage, and direct the affairs and business of the authority, subject to the policies, control, and direction of the directors. § 8055. GENERAL POWERS The authority shall have such powers as are necessary to carry out the purposes of this chapter including those powers provided a corporation under chapter 3 of Title 11A, subject to the limitations in section 8056 of this title, and shall include the power: (1) To borrow money, make and issue negotiable bonds, notes, and commercial paper; and give other evidences of indebtedness or obligations, and give security therefor. Such evidences of indebtedness or obligations may be incurred for any of the authority’s corporate purposes. Such evidences of indebtedness or obligations shall be in such form and denominations, and with such terms and provisions, including the maturity date or dates, redemption provisions, and other provisions necessary or desirable. Such evidences of indebtedness or obligations shall be either taxable or tax-exempt and shall be noninterest bearing, or bear interest at such rate or rates, which may be fixed or variable, as may be sufficient or necessary to effect the issuance and sale or resale thereof. The authority is authorized to enter into such agreements with other persons as the authority deems necessary or appropriate in connection

JOURNAL OF THE HOUSE 370 with the issuance, sale, and resale of such evidences of indebtedness or obligations, including, without limitation, trust indentures, bond purchase agreements, disclosure agreements, remarketing agreements, agreements providing liquidity or credit facilities, bond insurance, or other credit enhancements in connection with such evidences of indebtedness or obligations. The authority is authorized to resell or retire any such evidences of indebtedness or obligations prior to the stated maturity thereof. No indebtedness shall be issued by the authority without the written approval of the state treasurer, which approval shall be given if, based upon his or her investigation, the state treasurer has certified that: (A) none of the nationally-recognized credit rating agencies that rate general obligation debt of the state of Vermont has concluded that such indebtedness will be included as part of the state of Vermont’s net tax- supported debt computation, as prepared by such rating agencies; or (B) the financing structure and flow of funds for such indebtedness will not result in such indebtedness being counted as net tax - supported debt, or its equivalent, on the state of Vermont’s debt statement, as prepared by any of the nationally-recognized credit rating agencies that rate general obligation debt of the state of Vermont. (2) To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of property necessary to carry out the purposes of this chapter, real or personal, improved or unimproved, tangible or intangible, including an interest in land of less than fee; to hold and dispose of real and personal property; to enter into all contracts, leases, agreements, and arrangements; and to do all lawful acts and things necessary or incidental to the performance of its duties and the execution of its powers under this chapter. (3) To pledge or assign any money, fees, charges, or other revenues of the authority and any proceeds derived by the authority from the sale of property or from insurance or condemnation awards. (4) To sue and be sued in its own name and plead and be impleaded; service of process upon the authority in any action shall be made by service upon the secretary of state, either by hand or by leaving a copy of the process at the office of the secretary. (5) To adopt and amend bylaws, rules, and regulations for the calling and conduct of its meetings and for the conduct of its affairs. (6) To employ personnel who, in the discretion of the authority, may be in the classified system under chapter 13 of Title 3, and to employ or contract with agents, consultants, legal advisors, and other persons and entities as may 371 THURSDAY, MAY 20, 2004 be necessary or desirable for its purposes, upon such terms as the authority may determine. (7) To contract with the state of Vermont or any agency or political subdivision thereof, public corporations or bodies, private corporations or individuals for any purposes related to the authority. (8) To apply and contract for and to expend assistance from the United States or other sources, whatever the form. (9) To administer its own funds and to invest or deposit funds which are not needed currently to meet the obligations of the authority. (10) To do business inside or outside the state. (11) To apply to the appropriate agencies of the state, other states, the United States, and to any other proper agency for permits, licenses, certificates, or approvals which may be necessary, and to construct, maintain, and operate the facilities in accordance with these licenses, permits, certificates, or approvals; (12) To contract with respect to the purchase, sale, delivery, exchange, interchange, wheeling, pooling, transmission, or use of project electric power and energy and to otherwise participate in intrastate, interstate, and international wholesale arrangements with respect to those matters. (13) Alone or jointly, to plan, finance, acquire, construct, improve, purchase, operate, maintain, use, share costs of, own, lease, sell, dispose of or otherwise participate in the facilities or portions of the facilities, the product or service from them, securities or obligations issued or incurred in connection with the financing of them, or research and development relating to them, within or outside the state. The authority may also enter into and perform contracts with any person with respect to the foregoing. (14) To exercise all powers necessary or incidental to affect any or all of the purposes for which the authority is created. (15) To sell project electric power at wholesale within or outside the state (16) To purchase, maintain, and operate the facilities. (17) To contract for the use of transmission and distribution facilities owned by others solely for the purpose of engaging in wholesale transactions. § 8056. LIMITATIONS ON POWERS

JOURNAL OF THE HOUSE 372 (a) The authority shall not sell electric power at retail to any ultimate customer in Vermont, or require any electric utility to purchase electric power in a wholesale transaction. (b) The authority shall not seek or obtain treatment for any facility as a “qualifying facility” in Vermont under 18 C.F.R. § 292.201-207 or subdivision 209(a) (8) of this title. (c) Electric power provided by the authority shall not be sold to the Vermont Department of Public Service for ultimate sale at retail to Vermont consumers under sections 211 or 212a of this title. (d) The authority shall take no action to cause, nor shall any provision of this chapter be construed to impose, any obligation upon the state as a result of the insolvency of a partner. § 8057. OBLIGATIONS NOT OBLIGATIONS OF THE STATE The authority shall have the benefit of sovereign immunity to the same extent as the state of Vermont. Notwithstanding the foregoing, obligations of the authority under a contract authorized by this chapter shall not be deemed to constitute an obligation, indebtedness or a lending of credit of the state. § 8058. BONDS (a) In addition to any other statute affecting the authority, the authority may issue bonds to pay the costs of purchasing the facilities on the Connecticut and Deerfield Rivers, or property related to such facilities, to pay the costs of repairs, replacements or expansions of the facilities, or to pay capitalized interest and costs of issuance, which have been approved by the authority or to refund bonds previously issued. (b) In addition to any other statute affecting the authority, no bonds shall be issued under this section without the prior approval of the governor or designee. (c) Bonds issued under this section shall bear the manual or facsimile signature of the manager of the authority and the manual or facsimile signature of the chair or vice chair of the authority. Bonds shall be sold by the signing officers at public or private sale, and the proceeds thereof shall be paid to the trustee under the security document that secures the bonds. (d) No financing or security document, bond, or other instrument issued or entered into in the name and on behalf of the authority under this chapter shall in any way obligate the state to raise any money by taxation or use other funds for any purpose to pay any debt or meet any financial obligation to any person at any time in relation to a facility, project, or program financed in whole or in 373 THURSDAY, MAY 20, 2004 part by the issue of the authority’s bonds under this chapter, except from monies received or to be received under a financing or security document entered into under this chapter or except as may be required by any other provision of law. Notwithstanding the provisions of this subsection, the authority may accept and expend with respect to a facility, project, or program any gifts or grants received from any source in accordance with the terms of the gifts or grants. (e) The authority may undertake a joint financing of the project. (f) A state or national chartered bank, Vermont bank, or Vermont trust company may serve as trustee for the benefit of bondholders under a security document; and the trustee may at any time own all or any part of the bonds issued under that security document, unless otherwise provided therein. All monies received or held by the authority or by a trustee pursuant to a financing or security document, other than funds received or held by the authority for its own use, shall be deemed to be trust funds and shall be held and applied solely in accordance with the applicable document. (g) Except as provided in any financing or security document entered into or any bond issued under this chapter, each of the parties to the financing or security document or any bondholder may enforce the obligation of any other person to the party or bondholder under the bond or instrument by appropriate legal proceedings. (h) Bonds issued under this chapter shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity. Such bonds shall likewise be legal investments for all public officials authorized to invest public funds. § 8059. RECORDS; ANNUAL REPORT; AUDIT (a) The authority shall keep an accurate account of all its activities and of all its receipts and expenditures. (b) Each year, prior to February 1, the authority shall submit a report of its activities for the preceding fiscal year to the governor and to the general assembly. The report shall set forth a complete operating and financial statement covering its operations during the year. The authority shall cause an audit of its books and accounts to be made at least once in each year by a certified public accountant. The cost of the audit shall be considered an expense of the authority, and a copy of the audit shall be filed with the state treasurer. Sec. 102. VERMONT HYDRO-ELECTRIC POWER AUTHORITY;

JOURNAL OF THE HOUSE 374 TRANSITIONAL PROVISION; TERMINATION (a) Nothing in Sec. 101 of this act shall be interpreted to limit the lawful activities of the Vermont Renewable Power Supply Acquisition Authority created in Sec. 38 of No. 63 of the Acts of 2003. (b) Sec. 101 of this act, creating Chapter 90 of Title 30, shall terminate on July 1, 2007 if at that time no directors have been appointed by the governor and confirmed by the senate. If directors have been appointed and confirmed before that date, chapter 90 of Title 30 shall remain the law of the state. Sec. 103. 30 V.S.A. § 201 (a) is amended to read: § 201. DEFINITIONS (a) As used in this chapter, the word “company” or “companies” means and includes individuals, partnerships, associations, corporations and municipalities, owning or conducting any public service business or property used in connection therewith and covered by the provisions of this chapter. The term “company” or “companies” also includes electric cooperatives organized and operating under chapter 81 of this title, and the Vermont public power supply authority to the extent not inconsistent with chapter 84 of this title, and the Vermont Hydro-electric Power Authority to the extent not inconsistent with chapter 90 of this title . In the context of actions requiring prior approval under section 107 of this title, the term “company” shall also mean any individual, partnership, association, corporation, group, syndicate, operating division, joint stock company, trust, other entity, or municipality which would be defined as a company pursuant to this section if such approval were to be granted. * * * Effective Date * * * Sec. 104. EFFECTIVE DATE This act shall take effect on passage, except that state aid under Secs. 58 (energy performance contracting in schools) and 59 (renewable energy in schools) of this act shall be awarded from capital appropriations made during and after the 2005 legislative session. Committee on the Part of Committee on the Part of the Senate the House Sen. Vincent Illuzzi Rep. Robert H. Wood, Jr. Sen. Richard T. Mazza Rep. Daryl L. Pillsbury Sen. John F. Campbell Rep. George R. Allard Pending the question, Shall the House adopt the Committee of Conference report? Rep. Zuckerman of Burlington raised a Point of Order that the report 375 THURSDAY, MAY 20, 2004 was in violation of Masons Rules. Which Point of Order the Speaker ruled not well taken. Thereupon, the report of the Committee of Conference was adopted on the part of the House. Rules Suspended; Action Ordered Messaged to Senate Forthwith and Bills Delivered to the Governor Forthwith On motion of Rep. Symington of Jericho, the rules were suspended and action on the bill was ordered messaged to the Senate forthwith and the bill delivered to the Governor forthwith. H. 327 House bill, entitled An act relating to identity theft; H. 566 House bill, entitled An act relating to civil monetary penalty for welfare fraud; H. 764 House bill, entitled An act relating to the state’s transportation capital program and project development plan; H. 767 House bill, entitled An act relating to capital construction, state bonding, and the Department of Corrections; H. 768 House bill, entitled An act making appropriations for the support of government; H. 772 House bill, entitled An act relating to executive branch fees;

Joint Resolution Adopted in Concurrence

JOURNAL OF THE HOUSE 376 J.R.S. 67 Joint resolution, entitled Joint resolution relating to final adjournment of the General Assembly in 2004; By Senator Welch, 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 twentieth day of May, 2004, they shall do so to reconvene no later than the sixteenth day of June, 2004, at ten o’clock in the forenoon if the Governor should fail to approve and sign any bill and should he return it to the house of origin with his objections in writing after such adjournment, but if the Governor should not so return any bill to either house, to be adjourned sine die. Pending the question, Shall the resolution be adopted in concurrence? Rep. Webster of Randolph raised a Point of Order in that the resolution is in violation of Masons Rules, Sec. 445, which Point of Order the Speaker ruled not well taken. Thereupon, the resolution was adopted in concurrence. Senate Notified of Completion of House Business Rep. Houston of Ferrisburgh moved that the House direct the Clerk to inform the Senate that the House has completed the business of the second half of the biennial session and is ready to adjourn pursuant to the provisions of J.R.S. 67. Which was agreed to. Governor Notified of Completion of House Business Rep. Houston of Ferrisburgh moved that the Speaker appoint a committee of six to inform the Governor that the House has completed the business of the second half of the Biennial Session and is ready to adjourn pursuant to the provisions of J.R.S. 67, which was agreed to. Rep. Houston of Ferrisburgh Rep. Hube of Londonderry Rep. Symington of Jericho Rep. Partridge of Windham Rep. O’Donnell of Vernon Rep. Crawford of Burke Message from the Senate No. 77 377 THURSDAY, MAY 20, 2004 A message was received from the Senate by Mr. Gibson, its Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Senate has on its part completed the business of the session and is ready to adjourn to a day certain, June 16, 2004 if necessary, or if not necessary, then to be adjourned sine die, pursuant to the provisions of J.R.S. 67. Governor Presented at Bar of the House The Committee appointed to wait upon the Governor retired to the Executive Chamber and return with His Excellency, Governor James Douglas, and presented him at the bar of the House. The Governor addressed the House and, having completed his remarks, was escorted from the Hall by the Committee. House Concurrent Resolution Adopted H.C.R. 330 Reps. Symington of Jericho, Houston of Ferrisburgh, Hube of Londonderry and Partridge of Windham offered a House concurrent resolution, entitled House concurrent resolution honoring House Speaker Walter E. Freed of Dorset for his distinguished legislative service on behalf of the citizens of Vermont Whereas, in 1992, Walter Freed, a future Speaker of the House to be sure, was first elected to the General Assembly as the member from Dorset, and Whereas, his Republican legislative colleagues, upon his arrival at the State House, recognized his leadership potential, and he was elected chair of the freshman Republican Caucus, and Whereas, the following biennium, the House Republican Caucus acknowledged that Representative Freed was now prepared to proceed forward along the leadership path by elevating the sophomore solon to the position of minority whip, and Whereas, after a single term as his caucus’s number two leader, in 1997, his fellow Republican representatives elected him to serve as their party’s leader and be the primary spokesperson for his caucus on the floor of the House and before the public at large, and Whereas, in 2001, Walter E. Freed of Dorset became the 93rd individual that the members of the House chose to serve as their Speaker, and the first Speaker elected in the new millennium, and

JOURNAL OF THE HOUSE 378 Whereas, his colleagues again placed their trust in him to lead the House forthrightly and fairly when he was reelected for a second biennial term in 2003, and Whereas, while Speaker Freed has approached his floor duties with a seriousness of purpose, he has also demonstrated a knack for humor by occasionally replying to parliamentary and informational inquiries from the floor with witty retorts, and Whereas, although the formal business of the House occurs within the State House’s walls, the members enjoy the opportunity to participate in nonpartisan recreational activities, such as a friendly game of softball, and Whereas, in the waning days of the 2004 biennium, in a legislative softball game played on the Montpelier High School diamond, the Speaker demonstrated his talents at bat, and in the field, as he turned in one of the game’s most energetic and enthusiastic performances, and Whereas, Speaker Freed has announced that when he bangs the gavel to adjourn the 2004 Biennium sine die, he will be concluding his ten-year tenure as a member of the House and, by so doing, reminding us all that the General Assembly is first and foremost a citizen legislature, now therefore be it Resolved by the Senate and House of Representatives: That the General Assembly honors Speaker Walter E. Freed of Dorset for his distinguished legislative service on behalf of the citizens of Vermont, and be it further Resolved: That the Secretary of State be directed to send a copy of this resolution to Speaker Walter E. Freed in Dorset. Which was read and adopted on the part of the House. Adjournment Rep. Houston of Ferrisburgh moved that the House now adjourn pursuant to J.R.S. 67, which was agreed to. Thereupon, at ten o’clock and five minutes in the evening, the Speaker adjourned the House of Representatives pursuant to the provisions of J.R.S. 67.

Concurrent Resolutions Adopted The following concurrent resolutions, having been placed on the Consent Calendar on the preceding legislative day, and no member having requested 379 THURSDAY, MAY 20, 2004 floor consideration as provided by the Joint Rules of the Senate and House of Representatives, are hereby adopted in concurrence. H.C.R. 319 House concurrent resolution congratulating Stephen Miller of Troop #23 in Richmond upon earning the rank of Eagle Scout H.C.R. 320 House Concurrent resolution congratulating the Austine School for the Deaf on the occasion of the centennial anniversary of its incorporation H.C.R. 321 House concurrent resolution congratulating Benjamin Burdet of Troop #23 in Richmond upon earning the rank of Eagle Scout H.C.R. 322 House concurrent resolution congratulating Albert E. Trepanier of West Rutland on being awarded a Vermont Veterans Medal H.C.R. 323 House concurrent resolution honoring Robert “Bob” Clifford Uerz for his quarter century of service and leadership at the American Lung Association of Vermont H.C.R. 324 House concurrent resolution honoring the exemplary work of the Foundation for Excellent Schools H.C.R. 325 House concurrent resolution congratulating the Isle La Motte Free Public Library as it marks a century of serving readers on the westernmost Champlain island H.C.R. 326 House concurrent resolution congratulating the Orleans Lions Club on its 50th anniversary H.C.R. 327 House concurrent resolution congratulating Dawn Kersula R.N. on her being named the Brattleboro Memorial Hospital’s 2004 Employee of the Year

H.C.R. 328 House concurrent resolution congratulating Frances Frasca of Bellows Falls

H.C.R. 329 House concurrent resolution in memory of Alan H. Morrison S.C.R. 65.

JOURNAL OF THE HOUSE 380 Senate concurrent resolution honoring Arthur J. Rock, Jr. for his service as chair and as a member of the Vermont transportation board. S.C.R. 66. Senate concurrent resolution honoring Senator Gerry Gossens of Addison County for his extraordinary career in the service of his community, state, and nation. S.C.R. 67 Senate concurrent resolution in memory of Essex County Deputy Sheriff Ruby Rainault. S.C.R. 68. Senate concurrent resolution honoring Brenton Knight of Troop #332 on becoming an Eagle Scout. S.C.R. 69 Senate concurrent resolution honoring the State House Cafeteria. [The full text of the concurrent resolutions appeared in the Senate and House Calendar Addendum on the preceding legislative day and will appear in the volume of the Public Acts and Resolves of the 2004 Adjourned session of the sixty-seventh adjourned session] Final Messages and Communications Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twenty-first day of May, 2004, he approved and signed bills originating in the House of the following titles: H. 735 An act relating to improving availability of home and community based care services H. 737 An act relating to long-term care insurance Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twenty- second day of May, 2004, he approved and signed bills originating in the House of the following titles: 381 THURSDAY, MAY 20, 2004 H. 518 An act relating to listers H. 612 An act relating to mailing of town reports Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twenty-fourth day of May, 2004, he approved and signed a bill originating in the House of the following title: H. 258 An act relating to tuition expenses for members of the armed forces and their children Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twenty-sixth day of May, 2004, he approved and signed bills originating in the House of the following titles: H. 143 An act relating to reduction of the unemployment compensation rate for new businesses; H. 632 An act relating to workers’ compensation; H. 757 An act relating to the scope and nature of Act 250 review over utility distribution line extensions; H. 779 An act relating to the charter of the City of Winooski. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the twenty- seventh day of May, 2004, he approved and signed bills originating in the House of the following titles: H. 515 An act relating to management of the deer herd;

JOURNAL OF THE HOUSE 382 H. 516 An act relating to a prohibition against the use and sale of lead sinkers; H. 524 An act relating to municipal land records; H. 609 An act relating to the licensure of respiratory care practitioners; H. 783 An act relating to the Brattleboro town charter; H. 785 An act relating to stormwater discharge. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the first day of June, 2004, he approved and signed a bill originating in the House of the following title: H. 754 An act relating to the creation of a fire safety division within the department of public safety. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the third day of June, 2004, he approved and signed bills originating in the House of the following titles: H. 79 An act relating to prohibiting the disclosure of communications made to interpreters for hearing impaired persons; H. 201 An act relating to a farm viability program; H. 294 An act relating to a contractor’s lien for labor or materials; H. 528 An act relating to probation and pretrial detention H. 538 An act relating to trial by jury and jury service; H. 566 An act relating to Medicaid fraud; H. 765 An act relating to the term “Vermont Maple”; 383 THURSDAY, MAY 20, 2004 H. 778 An act relating to miscellaneous agricultural subjects. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the seventh day of June, 2004, he approved and signed bills originating in the House of the following titles: H. 412 An act relating to assessing a fee of one-half cent per gallon of heating oil sold in the state to be used to finance the cleanup of spills from aboveground storage tanks; H. 547 An act relating to the confidentiality and noncommercial distribution of certain tax records and data; H. 784 An act relating to income tax. Message from the Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House of Representatives that on the seventh day of June, 2004, he returned without signature and vetoed a bill originating in the House of Representatives of the following title: H. 780 An act relating to insurance. Communication from Governor “Donald G. Milne Clerk of the House of Representatives State House Montpelier, Vermont 05602 Dear Mr. Milne: I am returning H. 780, An Act Relating to Insurance, without my signature because of my objections described below. H. 780 proposes to amend 23 V.S.A. §941 pertaining to insurance against underinsured motorists and to change Vermont law to increase some individuals’ access to greater underinsured motorist insurance benefits. This bill was in response to the Vermont supreme Court’s decision in Colwell v.

JOURNAL OF THE HOUSE 384 Allstate Insurance Co., 2003 Vt. 5,819 .2ND 727 (2003). There the Court relied upon the specific statutory definition of “:underinsured” motorist and a comparison of insurance limits to find that some otherwise insured persons, in rare instances, might not recover underinsured motorist damages despite the unavailability of liability insurance proceeds from the at-fault driver. I support the policy decision by the General Assembly to redefine underinsured motorist coverage to provide more coverage to injured motorists through amendment of 23 V.S.A. §941(f) in those instances presented by the facts of the Colwell case. In the conference committee on H. 780, however, a series of additional amendments were proposed to 23 V.S.A. §941 that were intended to reduce the likelihood of litigated coverage disputes and simplify the adjustment and settlement of claims for consumers. These amendments may have an opposite and unintended result. Two of the added provisions, subsections (g) and (h), were added in conference committee in an effort to clarify in law which insurance companies are responsible for paying an insured’s damages when multiple insurance policies might apply to insure a claim. I applaud the General Assembly’s goal of simplifying the claims procedure and bringing predictability to coverage decisions, as these efforts will ultimately benefit bringing predictability to coverage decisions, as these efforts will ultimately benefit consumers through the avoidance of delay, confusion and litigation. These two subsections, however, effectively abolish the long-recognized distinction in insurance contracts between primary and excess coverage in favor of a unique legal requirement that all policies pay a pro-rata share of damages in every instance in which more than one policy covers an injured person. These provisions also seem to contemplate the payment of damages by umbrella policies under circumstances in which a claim on those policies has, to date been one of last resort. Moreover, no detail is provided on how to allocate payment responsibilities in the event of coverage disputes or how best to assure prompt settlements. The likely impact of all these changes in the allocation of risk is to increase premiums and potentially reduce the availability of such critical insurance coverage for Vermont consumers while giving rise to more frustration, confusion and delay in claims processing for injured motorists. Equally troubling is the proposed amendment to §941(a) that would raise the deductible for underinsured motorist property damage coverage from $150 to $250 for those persons without direct damage coverage. The effect of the proposed amendment on persons with direct damage insurance, however, is unclear. The revised §941(a) proposed to increase these deductibles to the same amount as an insured’s collision or comprehensible deductibles, yet fails to amend a subsequent contradictory subsection the prohibits a deductible for 385 THURSDAY, MAY 20, 2004 those with just such direct damage coverage. This language raises significant concerns as to how to reconcile the Legislature’s intent with these distinctly contradictory provisions. It is with regret that I return this bill without my signature. I thank the General Assembly for its work on this important issue. I have directed the Commissioner of Banking, Insurance, Securities and Health Care Administration to consult with interested parties prior to the next biennium and to advise the General Assembly and me on how best to address the concerns raised by the Colwell decision. Sincerely, /s/ James H. Douglas Governor” Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the eighth day of June, 2004, he approved and signed bills originating in the House of the following titles: H. 199 An act relating to photographs on driver licenses and learner permits; H. 327 An act relating to identity theft; H. 482 An act relating to compensation for certain state employees; H. 767 An act relating to capital construction, state bonding, and the department of corrections. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the tenth day of June, 2004, he approved and signed bills originating in the House of the following titles: H. 35 An act relating to child support, custody and visitation;

JOURNAL OF THE HOUSE 386 H. 764 An act relating to the state’s transportation capital program and project development plan. Message from Governor A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows: Mr. Speaker: I am directed by the Governor to inform the House that on the tenth day of June, 2004, he approved and signed bills originating in the House of the following titles: H. 272 An act relating to nutrition policy in Vermont schools; H. 752 An act relating to advance directives for health care, pain management and long-term care; H. 768 An act making appropriations for the support of government; H. 772 An act relating to executive branch fees. Message from the Senate No. 78 A message was received from the Senate by Mr. Gibson, its Secretary, as follows: Mr. Speaker: I am directed to inform the House that the Governor has informed the Senate that on the nineteenth day of May, 2004, he approved and signed bills originating in the Senate of the following titles: S. 100. An act relating to humane and proper treatment of animals. S. 225. An act relating to membership of the Criminal Justice Training Council. The Governor has informed the Senate that on the twenty-forth day of May, 2004, he approved and signed bills originating in the Senate of the following titles: S. 75. An act relating to decedents’ estates. S. 239. An act relating to prohibition of entering captive fish in a fishing tournament or declaring a captive fish a state record. S. 315. An act relating to funding of union and unified Union school districts. 387 THURSDAY, MAY 20, 2004 The Governor has informed the Senate that on the twenty-sixth day of May, 2004, he approved and signed a bill originating in the Senate of the following title: S. 154. An act to provide whistleblower protection for hospital employees. The Governor has informed the Senate that on the twenty-sixth day of May, 2004, he did not approve and allowed to become law without his signature a bill originating in the Senate of the following title: S. 76. An act relating to marijuana use by persons with severe illness. The Governor has informed the Senate that on the third day of June, 2004, he approved and signed bills originating in the Senate of the following titles: S. 79. An act relating to joint tenancy. S. 311. An act relating to making miscellaneous changes in statutes affecting the Vermont Agency of Transportation. The Governor has informed the Senate that on the eighth day of June, 2004, he approved and signed a bill originating in the Senate of the following title: S. 227. An act relating to sex offender registration and community notification.

JOURNAL OF THE HOUSE 388 The Governor has informed the Senate that on the twelfth day of June, 2004, he approved and signed a bill originating in the Senate of the following title: S. 42. An act relating to the redevelopment of contaminated properties program and state telecommunications policy.