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House Calendar

FRIDAY, MAY 31, 2002

144th DAY OF ADJOURNED SESSION

ORDERS OF THE DAY

ACTION CALENDAR

Action Postponed Until Friday, May 31, 2002

H. 708

An act relating to high school diplomas for World War II, Korean Conflict and Vietnam war veterans.

Pending Action: Report of the Committee of Conference.

The Committee of Conference respectfully report that they have met and considered the same, and recommend that the Senate recede from its proposal of amendment and that the bill be amended by striking all after the enacting clause and by inserting in lieu thereof the following:

Sec. 1. FINDINGS

The General Assembly finds:

(1) This act is intended to honor veterans of World War II who never completed their secondary education.

(2) The awarding of high school diplomas to World War II veterans does not diminish, in any manner, the extraordinary sacrifices which the veterans of more recent military conflicts have made on our nation’s behalf.

(3) This act can serve as a model for future legislatures to honor the veterans of more recent military conflicts when a suitable span of time has passed between the conflict’s conclusion and the adoption of authorizing legislation.

(4) On December 7, 1941, planes of the Japanese Air Force attacked the U.S. Naval Base at Pearl Harbor, Hawaii, marking the first time a foreign military force had attacked American territory since the War of 1812. In response to this attack, the United States declared war against Japan, and, soon thereafter, the Axis Powers.

(5) As a result of these declarations of war, the nation’s youth of that era, who have since been lauded as the greatest generation of Americans, was mobilized, and served our country valiantly with pride and distinction. The courage of these young Americans assured a resounding United States military victory in the nearly four-year-long conflict that preserved our nation’s freedoms.

(6) As this generation was discharged from military service in 1945 and 1946, many of these veterans, who had delayed marriage and starting families because of their World War II military obligations, immediately entered the workforce. In that era, when technical knowledge was not as essential an occupational commodity as it is in the 21st century, many of these veterans elected not to complete their high school education.

(7) Over half a century has elapsed since VE and VJ Days. These World War II veterans have largely retired from their careers, and are now senior citizens whose numbers are rapidly decreasing.

(8) It is fitting for the state of Vermont to honor the remaining members of the greatest generation by awarding those who did not complete their secondary education an official high school diploma to symbolize, in a small way, the gratitude of all Vermonters for the sacrifices endured in order that, today, we can live in freedom.

Sec. 2. 16 V.S.A. § 563(25) is added to read:

(25) shall, if it is a school board of a school district which maintains a secondary school, upon request, award a high school diploma to any Vermont resident who served in the military in World War II, was honorably separated from active federal military service, and does not hold a high school diploma. The state board shall develop and make available an application form for veterans who wish to request a high school diploma.

and that the bill be further amended by amending the title to read:

AN ACT RELATING TO HIGH SCHOOL DIPLOMAS FOR WORLD

WAR ii VETERANS

Jean Ankeney

Diane Snelling

Hull Maynard

Committee on the part of the Senate

Kathy Lavoie

Jack Anderson

Donny Osman

Committee on the part of the House

(For text see Senate Journal 4/23/2002, p. 802 )

(For text see House Journal 3/12/2002, p. 457; 3/13/2002, p. 468)

Third Readings

S. 27

An act relating to increasing the technologies that may be used in the state for on-site disposal of wastewater.

S. 138

An act relating to standards for labeling of electricity for resale.

S. 151

An act relating to abandoned motor vehicles.

Amendment to be offered by Reps. Darrow of Dummerston and Brown of Walden to S. 151

Move to amend the proposal of amendment in Sec. 1. §2151(a)(1), by striking the word "eight" and inserting in lieu thereof the following: 24

Amendment to be offered by Reps. Randall of Bradford and George of Middlebury to S. 151

Move to amend the proposal of amendment as follows:

First: In Sec. 1, 23 V.S.A. § 2155(a)(2), at the end, by inserting "The owner or agent of the owner of private property shall be reimbursed for the towing fee when any person reclaims the abandoned motor vehicle.

Second: In Sec. 1, 23 V.S.A. § 2156(a), at the end, by inserting "Any funds received from the sale or salvage of an abandoned motor vehicle by the towing service in excess of the storage charges, up to $50.00, shall be used to reimburse the payor of the towing fee."

S. 241

An act relating to auricular acupuncture for the treatment of alcoholism, substance abuse or chemical dependency.

Amendment to be offered by Rep. Sweaney of Windsor to S. 241

Moves the House propose to the Senate to amend the bill in Sec. 2, § 3412 of 26 V.S.A., subsection (d), by striking the last sentence in its entirety.

S. 300

An act relating to redistricting the Vermont Senate.

Amendment to be offered by Rep. Howrigan of Fairfield to S. 300

Moves the proposal of amendment be amended by adding a new Sec. 2(b)(3) to read:

(3) FRANKLIN-2 is subdivided into the following districts:

FRANKLIN 2-1. The towns of Fairfield, Fletcher and that portion of St. Albans Town bounded by a line beginning on the west at the intersection of the Fairfield town line and Fairfield Hill Road (VT Route 36), then proceeding northwesterly along Fairfield Hill Road to Fisher Pond Road, then southerly to Grice Bridge road to the border of St, Albans City, then along the border of St. Albans City in a southwesterly direction to the intersection of Ethan Allen Highway (Georgia Road), then along Ethan Allen Highway southwesterly to its intersection with the town line of the town of Georgia, then easterly along the town line of Georgia to the intersection of the town lines of Georgia, Fairfax and Fairfield, then along the town line of Fairfield northeasterly to the point of beginning. 1

FRANKLIN 2-2 That portion of St. Albans town which is not in FRANKLIN 2-1. 1

Amendment to be offered by Rep. Hingtgen of Burlington, Wright of Burlington and Quaid of Williston to S. 300

Moves to amend the proposal of amendment in Sec. 1. §1881, by striking subdivision (4), and by inserting a new subdivision (4) to read:

(4) *[Chittenden senatorial district, composed of the towns of Bolton, Buel’s Gore, Burlington, Charlotte, Essex, Hinesburg, Huntington, Jericho, Milton, Richmond, St. George, Shelburne, South Burlington, Underhill, Westford, Williston, Winooski......... six;

]*

(A) Chittenden senatorial district #1, composed of the cities of Burlington, South Burlington and Winooski………… three.

(B) Chittenden senatorial district #2, composed of the towns of Charlotte, Essex, Hinesburg, Jericho, Milton, Richmond, Shelburne, St. George, Underhill, Westford and Williston……. three.

and striking subdivision (11), and by inserting a new subdivision (11) to read:

(11) Washington senatorial district, composed of the towns of Barre City, Barre Town, Berlin, Bolton, Buel’s Gore, Cabot, Calais, Duxbury, East Montpelier, Fayston, Huntington, Marshfield, Middlesex, Montpelier, Moretown, Northfield, Plainfield, Roxbury, Waitsfield, Warren, Waterbury, Woodbury and Worcester............... three;

Senate Proposal of Amendment

H. 519

An act relating to emergency generating facilities.

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:

Sec. 1. FINDINGS; PURPOSE

The general assembly finds there is a remote possibility that sets of circumstances could occur, causing sudden problems with electric power transmission or generating systems or natural gas facilities. In addition, there is the possibility a terrorist incident elsewhere could create difficulties with energy distribution within Vermont. These situations require a faster process than the required statutory process for obtaining a certificate of public good before commencing work. Even when the governor declares a state of emergency on account of anything other than an enemy attack to Vermont, existing statutes could seriously slow repairing electric or natural gas systems in the state. This act provides an expedited process to keep these essential systems operating in these emergency situations, while still providing for a subsequent review process to determine the fixes are in the public good.

Sec. 2. 30 V.S.A. § 248(k) is amended to read:

(k)(1) Notwithstanding any other provisions of this section, the board may waive, for a specified and limited time, the prohibitions contained in this section upon site preparation for or construction of an electric transmission facility *[contained in this section]* or a generation facility necessary to assure the stability or reliability of the electric system or a natural gas facility, pending full review under this section.

(2) A person seeking a waiver under this subsection shall file a petition with the board and shall provide copies to the department of public service and the agency of natural resources. Upon receiving the petition, the board shall conduct an expedited preliminary hearing, upon such notice to the governmental bodies listed in subdivision (a)(4)(C) of this section as the board may require.

(3) An order granting a waiver may include terms, conditions and safeguards, including the posting of a bond or other security, as the board deems proper, considering the scope and duration of the requested waiver.

(4) A waiver shall be granted only upon a showing that:

(A) good cause exists because an emergency situation has occurred;

(B) the waiver is necessary to provide adequate and efficient service or to preserve the property of the public service company devoted to public use; *[and

]*

(C) measures will be taken, as the board deems appropriate, to minimize significant adverse impacts under the criteria specified in subdivisions (b)(5) and (8) of this section; and

*[

(C)]*(D) taking into account any terms, conditions and safeguards that the board may require, the waiver will promote the general good of the state.

(5) Upon the expiration of a waiver, if a certificate of public good has not been issued under this section, the board shall require the removal, relocation or alteration of the facilities subject to the waiver, as it finds will best promote the general good of the state.

Sec. 3. 30 V.S.A. § 248(l) is added to read:

(l) Notwithstanding other provisions of this section, and without limiting any existing authority of the governor, and pursuant to subdivisions 9(10) and (11) of Title 20, when the governor has proclaimed a state of emergency pursuant to section 9 of Title 20, the governor, in consultation with the chair of the public service board and the commissioner of the department of public service, or their designees, may waive the prohibitions contained in this section upon site preparation for or construction of an electric transmission facility or a generation facility necessary to assure the stability or reliability of the electric system or a natural gas facility. Waivers issued under this subsection shall be subject to such conditions as are required by the governor, and shall be valid for the duration of the declared emergency plus 180 days, or such lesser overall term as determined by the governor. Upon the expiration of a waiver under this subsection, if a certificate of public good has not been issued under this section, the board shall require the removal, relocation, or alteration of the facilities, subject to the waiver, as the board finds will best promote the general good of the state.

Sec. 4. 3 V.S.A. § 2822(c) and (d) are added to read:

(c) If a waiver has been granted by the public service board under subsection 248(k) of Title 30, the secretary or the secretary’s designee shall expedite and may authorize temporary emergency permits with appropriate conditions to minimize significant adverse environmental impacts within the jurisdiction of the agency, after limited or no opportunity for public comment, allowing site preparation for or construction or operation of an electric transmission facility or a generating facility necessary to assure the stability or reliability of the electric system or a natural gas facility, regardless of any provision in Title 10 or chapter 11 of Title 29. Such authorization shall be given only after findings by the secretary that: good cause exists because an emergency situation has occurred; the applicant will fulfill any conditions imposed to minimize significant adverse environmental impacts; and the applicant will, upon the expiration of the temporary emergency permit, remove, relocate, or alter the facility as required by law or by an order of the public service board. A permit issued under this subsection shall be subject to such conditions as are required by the secretary, and shall be valid for the duration of the declared emergency plus 180 days, or such lesser overall term as determined by the secretary. Upon the expiration of a temporary emergency permit under this subsection, if any applicable permits have not been issued by the secretary or the commissioner of environmental conservation, the secretary may seek enforcement under applicable law.

(d) The secretary may adopt rules to implement the authority to issue expedited, temporary emergency permits specified in subsection (c) of this section and in subdivision 9(11) of Title 20.

Sec. 5. 20 V.S.A. § 9 is amended to read:

§ 9. EMERGENCY POWERS OF GOVERNOR

Subject to the provisions hereinafter stated, in the event of a natural disaster, a radiological incident, hazardous chemical or substance incident or an enemy attack upon the United States or Canada, any of which causes or may cause substantial damage or injury to persons or property within the bounds of the state in any manner, the governor may proclaim a state of emergency within the entire state or any portion or portions of the state. Thereafter, the governor shall have, and may exercise for such period as he or she shall find the emergency exists, the following additional powers within such area or areas:

* * *

(10) As provided in section 248(l) of Title 30, in consultation with the chair of the public service board and the commissioner of the department of public service or their designees, to waive the prohibitions contained in section 248 of Title 30 upon site preparation for or construction of an electric transmission facility or a generating facility necessary to assure the stability or reliability of the electric system or a natural gas facility. Waivers issued under this subdivision shall be subject to such conditions as are required by the governor, and shall be valid for the duration of the declared emergency plus 180 days, or such lesser overall term as determined by the governor. Upon the expiration of a waiver under this subdivision, if a certificate of public good has not been issued by the public service board under section 248 of Title 30, the board shall require the removal, relocation, or alteration of the facilities, subject to the waiver, as the board finds will best promote the general good of the state.

(11) In consultation with the secretary of the agency of natural resources or designee, to authorize the agency to issue temporary emergency permits, with appropriate conditions to minimize significant adverse environmental impacts, after limited or no opportunity for public comment, allowing site preparation for, construction of or operation of an electric transmission facility or a generating facility necessary to assure the stability or reliability of the electric system or a natural gas facility. A permit issued under this subdivision shall be subject to such conditions as are required by the governor, and shall be valid for the duration of the declared emergency plus 180 days, or such lesser overall term as determined by the governor. Upon the expiration of a temporary emergency permit under this subdivision, if any applicable permits have not been issued by the secretary or the commissioner of environmental conservation, the secretary may seek enforcement under applicable law.

Sec. 6. 10 V.S.A. § 912 is added to read:

§ 912. TEMPORARY EMERGENCY PERMITS

The secretary or the secretary’s designee shall expedite and may authorize temporary emergency permits under this title, pursuant to 3 V.S.A. § 2822(c).

Sec. 7. 29 V.S.A. § 408(d) is added to read:

(d) Temporary emergency permits may be issued, pursuant to 3 V.S.A. § 2822(c).

Sec. 8. 30 V.S.A. chapter 14 is revised to read:

CHAPTER 14. CITY OF BURLINGTON *[AND]*, VILLAGE OF LYNDONVILLE AND TOWN OF ROCKINGHAM

ACQUISITION OF FACILITIES

Sec. 9. 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 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, including compliance with subsection 248(c) 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. 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. 10. 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 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. 11. 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 section 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.

(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. 12. 30 V.S.A. § 611 is added to read:

§ 611. Staging of Processes of Acquisition of Hydroelectric and Other Assets

In connection with a municipalization effort by the town of Rockingham that includes an effort to acquire the hydroelectric facilities referred to in section 604(d) of this chapter, neither the town nor a utility shall commence proceedings under sections 2909 or 2910 of this title for the town to take by eminent domain or for the public service board to set a value for the electric transmission and distribution plant within the town unless and until the town has first reached a written agreement with the owner of the hydroelectric facilities, signed by the town and the owner of the hydroelectric facilities, that establishes the owner’s willingness to sell those facilities at a particular price. No person shall be considered to be prejudiced in any manner by any effect this section may have on such person’s ability to otherwise comply with any procedural, substantive, or timing requirement of chapter 79 of this title. This section shall not impede or limit the town’s ability to acquire any utility plant, in any manner authorized by law, in connection with any municipalization effort that clearly does not involve a then- present effort to acquire the hydroelectric facilities referred to in section 604(d) of this chapter.

Sec. 13. 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. 14. 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 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 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.

Sec. 15. EFFECTIVE DATE

This act shall take effect upon passage.

And that the title of the bill be amended to read as follows:

AN ACT RELATING TO EMERGENCY GENERATING FACILITIES, AND TO THE TOWN OF ROCKINGHAM AND ELECTRIC GENERATING FACILITIES

(For text see House Journal 3/14/02 – p. 500)

Consent Calendar for Concurrent Resolution

The following joint concurrent resolution will be adopted automatically unless a member requests floor consideration before the end of today’s legislative session. Requests for floor consideration should be communicated to the Clerk’s office or to a member of the Clerk’s office staff.

J.C.R.H. 51

Joint concurrent resolution congratulating the students and teachers at the Albert D. Lawton School who created the project "Freedom Quilt"

J.C.R.S. 11.

Joint concurrent resolution congratulating William A. "Bill" Bartlett on his retirement as executive director of the Water Resources Board.

NOTICE CALENDAR

Favorable with Amendment

H. 761

An act relating to professional regulation.

(Rep. Atkins of Winooski will speak for the Committee on Government Operations.)

Rep. Little of Shelburne, for the Committee on Ways and Means, recommends the bill be amended as follows:

First: In Sec. 2, 3 V.S.A. § 129a(c), in the last sentence, by striking the words "professional regulatory fee fund established under section 124 of this title" and inserting in lieu thereof the words "general fund"

Second: In Sec. 15, 26 V.S.A. § 1252, by striking subsection (d) in its entirety and inserting a new subsection (d) to read as follows:

(d) Removal personnel. Any person who desires to engage in removals shall register with the board of funeral service and pay the fee established in subsection 1256(d) of this title. The applicant shall have attained the age of majority, be of good moral character, and be directly employed by a licensed funeral or crematory establishment. The board may prescribe, by rule, the forms for applicants, which may include proof of completion of up to three hours of education and training in infectious diseases in programs approved by the board. Registrants under this section are authorized to perform removals only, as defined by this chapter. Unlicensed personnel may accompany licensed personnel to assist in removals so long as they have been instructed in handling and precautionary procedures prior to the call.

Third: In Sec. 23, 26 V.S.A. § 2404, by striking "section 352" and inserting in lieu thereof "sections 352 and 352a"

Fourth: In Sec. 29, 26 V.S.A. § 3175a(c), by striking subdivision (2) in its entirety and inserting in lieu thereof a new subdivision (2) to read as follows:

(2) The application fee established in subdivision 3178a(5)(A) of this title.

Fifth: In Sec. 29, 26 V.S.A. § 3175a(d), by striking subdivision (2) in its entirety and inserting in lieu thereof a new subdivision (2) to read as follows:

(2) The application fee established in subdivision 3178a(5)(A) of this title.

Sixth: In Sec. 29, 26 V.S.A. § 3175a, by striking subsection (e) in its entirety and insert in lieu thereof a new subsection (e) to read as follows:

(e) Instructors licensed under this section are subject to the same renewal requirements as others licensed under this chapter, and prior to renewal are required to show proof of current instructor licensure and pay the renewal fee established in subdivision 3178a(5)(B) of this title.

Seventh: By adding a new Sec. 29a to read as follows:

Sec. 29a. 26 V.S.A. § 3178a(5) is added to read:

(5) Instructor licensure

(A) Application for licensure $100.00

(B) Biennial renewal $150.00

(Committee vote: 8-0-3)

Rep. Waite of Pawlet, for the Committee on Appropriations, recommends the bill ought to pass when amended as recommended by the Committee on Ways and Means.

(Committee Vote: 10-1-0)

Amendment to be offered by Reps. Laroque of Barnet and Otterman of Topsham to H. 761

Move to amend the bill by adding a new Sec. 32a to read as follows:

Sec. 32a. REPEAL

26 V.S.A. § 3283a (physician evaluation requirement for hearing aid dispensers) is repealed in its entirety.

Amendment to be offered by Rep. Atkins of Winooski to H. 761

Moves the bill be amended in Sec. 29, by striking subsection (b) in its entirety and inserting in lieu thereof a new subsection (b) to read as follows:

(b) The board shall license instructors of such training courses, and shall adopt rules governing the licensure of instructors and the approval of firearms and guard dog training programs. An approved firearms training program shall be for a minimum of 80 hours, shall include a written assessment, marksmanship skills assessment and decision-making assessment, and shall cover the following subjects:

(1) firearms liability;

(2) use of force continuum policies;

(3) deadly force application and policies;

(4) case law reviews;

(5) handgun safety, including storage at home and office;

(6) handgun maintenance;

(7) handgun marksmanship skill; and

(8) instructional leadership skills.

Amendment to be offered by Rep. Waite of Pawlet to H. 761

Moves the bill be amended in Sec. 29 by adding a new subsection (f) to read:

(f) Hunter safety instructors shall be exempt from the licensure requirements of this section for the purpose of hunter safety instruction.

Amendment to be offered by Rep. Hingtgen of Burlington to H. 761

Moves the bill be amended by striking Sec. 24 in its entirety and inserting in lieu thereof the following:

Sec. 24. 26 V.S.A. § 2405 is added to read:

§ 2405. IMMUNITY FROM LIABILITY FOR GOOD SAMARITAN ACTS

(a) For purposes of this section, an "emergency" shall include a fire, flood, storm or other natural disaster, hazardous chemical or substance incident, vehicular collision with an animal, or other transportation accident where an animal is injured or in need of assistance to protect its health or life.

(b) A veterinarian licensed by the board or any other person who, in good faith, provides care and treatment to an animal during an emergency shall not be held liable for civil damages by the owner of the animal, unless his or her acts constitute gross negligence or unless he or she will receive or expects to receive remuneration.

(c) Nothing contained in this section shall alter existing law with respect to tort liability of a practitioner of veterinary medicine for acts committed in the ordinary course of his or her practice.

Amendment to be offered by Rep. Larose of Richford to H. 761

Moves the bill be amended by adding a new Sec. 44a to read:

Sec. 44a. NATUROPATHIC MEDICINE; OFFICE OF PROFESSIONAL

REGULATION; REPORT

The director of the Office of Professional Regulation, with the assistance of the naturopathic physician advisor appointees described in section 4126 of Title 26, shall perform a comprehensive review of the effectiveness and results of Chelation Therapy. By January 1, 2003, the director shall file a report with the General Assembly which describes the review performed and which makes recommendations on how the General Assembly may promote the use of Chelation Therapy.

Amendment to be offered by Rep. Voyer of Morristown to H. 761

Moves the bill be amended as follows:

First: In Sec. 9, 26 V.S.A. § 533(a)(1), by striking "is in possession of good moral character,"

Second: In Sec. 15, 26 V.S.A. § 1252(a), by striking the second complete sentence in its entirety and inserting in lieu thereof a new sentence to read as follows:

"The applicant shall have attained the age of majority*[, be a citizen of the United States, a resident of the state of Vermont and be of good moral character]* and hold a high school or general educational development diploma or its equivalent."

Third: In Sec. 15, 26 V.S.A. § 1252(d), line 17, by striking ", be of good moral character,"

Fourth: By striking Sec. 16 in its entirety and inserting in lieu thereof a new Sec. 16 to read as follows:

Sec. 16. 26 V.S.A. § 1254 is amended to read:

§ 1254. ISSUANCE OR DENIAL OF LICENSE

If, upon examination, it is found that the applicant *[is of a good moral character and possessed of]* possesses sufficient skill and knowledge of the business, the board shall issue to him or her upon the payment of an initial license fee, a license to engage in the business of funeral director or crematory establishment, and shall *[register]* license him or her *[as a duly licensed funeral director]*. All applications shall be granted or denied within *[ninety]* 90 days from the making thereof.

S. 264

An act relating to promotion of energy efficiency and renewable electric generation.

Rep. Dostis of Waterbury, for the Committee on Commerce, recommends that the House propose to the Senate that the bill be amended by striking all after the enacting clause and inserting in lieu thereof the following:

Sec. 1. FINDINGS

(a) The general assembly finds that it is in the public interest to:

(1) encourage public and private investment in environmentally-sound, sustainable and renewable energy resources, as well as in existing energy conservation technologies, and thereby to increase the degree to which Vermont’s energy needs are met through nonpolluting, sustainable and renewable energy sources;

(2) enhance the continued diversification of energy resources in Vermont;

(3) provide appropriate flexibility in the regulation of electric and natural gas companies;

(4) create the opportunity for the development of a financially strong and dynamic electric utility industry in Vermont;

(5) promote efficiencies and innovation in the provision of electric service to the citizens of Vermont; and

(6) stimulate the development of the Vermont economy.

(b) The general assembly further finds that programs to authorize and clarify the nature and scope of renewable pricing programs for electric utilities, to authorize alternative regulation of utilities, and to encourage development of combined heat and power systems are ways to achieve the purposes in subsection (a) of this section.

Sec. 2. 30 V.S.A. chapter 89 is added to read:

CHAPTER 89. RENEWABLE ENERGY PROGRAMS

§ 8001. Renewable energy goals

(a) The renewable energy programs authorized under this chapter shall be designed and implemented to achieve the following goals:

(1) Environmental quality shall be protected and promoted in renewable energy programs.

(2) The continued acquisition of cost-effective end-use energy efficiency measures shall be preserved and enhanced in renewable energy programs.

(3) Programs shall, to the extent practicable, support development of renewable energy and energy efficiency industries and infrastructure in Vermont.

(4) Programs shall, to the extent practicable, be designed and implemented in a manner that balances program benefits and costs.

(b) The public service board shall provide, by order or rule, such regulations and procedures as are necessary to allow the board and the department of public service to implement and supervise programs pursuant to this chapter.

§ 8002. DEFINITIONS

For purposes of this chapter:

(1)(A) "Renewable pricing" shall mean an optional service provided or contracted for by an electric company:

(i) under which the company’s customers may voluntarily either:

(I) purchase all or part of their electric energy from renewable sources as defined in this chapter; or

(II) cause the purchase and retirement of tradeable renewable energy credits on the participating customer’s behalf; and

(ii) which increases the company’s reliance on renewable sources of energy beyond those the electric company would otherwise be required to provide under section 218c of this title.

(B) Renewable pricing programs may include, but are not limited to:

(i) contribution-based programs in which participating customers can determine the amount of a contribution, monthly or otherwise, that will be deposited in a board-approved fund for new renewable energy project development;

(ii) energy-based programs in which customers may choose all or a discrete portion of their electric energy use to be supplied from renewable resources;

(iii) facility-based programs in which customers may subscribe to a share of the capacity or energy from specific new renewable energy resources.

(2) "Renewable technology" means a technology that relies on a resource that is being consumed at a harvest rate at or below its natural regeneration rate.

(A) For purposes of this subdivision (2), methane gas and other flammable gases produced by the decay of sewage treatment plant wastes or landfill wastes and anaerobic digestion of agricultural products, by-products, or wastes shall be considered renewable energy resources, but no form of solid waste, other than agricultural or silvicultural waste, shall be considered renewable.

(B) For purposes of this subdivision (2), no form of nuclear fuel shall be considered renewable.

(C) For purposes of this chapter, hydroelectric power may be considered renewable.

(3) "Sustainable technology" means a technology the board has determined meets the needs of the present without compromising the ability of future generations to meet their needs and, specifically, consumes renewable resources at rates at or below their natural regeneration rates, depletes nonrenewable resources, if at all, at a rate limited to the rate of creation of renewable substitutes, and results in waste streams or pollution emissions that do not exceed the assimilative capacities of affected ecosystems. For purposes of this chapter, no form of nuclear fuel or solid waste, other than agricultural or silvicultural waste, shall be considered sustainable.

(4) "Tradeable renewable energy credits" means all of the environmental attributes associated with a single unit of energy generated by a renewable energy source where:

(A) those attributes are transferred or recorded separately from that unit of energy;

(B) the party claiming ownership of the tradeable renewable energy credits has acquired the exclusive legal ownership of all, and not less than all, the environmental attributes associated with that unit of energy; and

(C) exclusive legal ownership can be verified through an auditable contract path or pursuant to the system established or authorized by the public service board pursuant to subsection 8004(c) of this title or any program for tracking and verification of the ownership of environmental attributes of energy legally recognized in any state and approved by the board.

§ 8003. RENEWABLE PRICING

(a) Upon petition of an electric company subject to this title, upon request of the department of public service, or on its own initiative, the public service board may approve one or more renewable pricing programs for one or more electric utilities; provided, however, in the case of a municipal plant or department formed under local charter or chapter 79 of this title, or an electric cooperative formed under chapter 81 of this title, any renewable pricing program approved by the board shall also be approved by a majority of the voters of a municipality or cooperative voting upon the question at a duly warned annual or special meeting held for that purpose. Such programs may include, but are not limited to, tariffs, standard special contracts, or other arrangements whose purpose is to increase the company’s reliance on, or the customer’s support of, renewable sources of energy or the type and quantity of renewable energy resources available.

(b) A standard special contract for renewable pricing that has been approved as to form and substance by the board under this section shall not require further approval by the board under section 229 of this title as to individual customers who choose to execute that contract.

(c) Renewable pricing programs may be priced in the form of a premium relative to the tariff that would otherwise apply; provided, the premium shall be cost-based, shall reasonably reflect the difference between acquiring the renewable energy and the utility’s alternative cost of power, including administrative costs, and shall be adjusted from time to time to reasonably reflect changes in any underlying cost difference due to increases or decreases in the cost of all sources of electric energy. Any renewable pricing program shall require that any costs of power in excess of the company’s alternative cost of power shall be borne solely by those customers who elect to participate in the renewable pricing program.

(d) Tradeable renewable energy credits (with or without other features), tradeable emissions credits, emission offsets, or other market instruments created or obtained by energy resources acquired pursuant to or as part of a renewable pricing program approved under this section shall be permanently retired by or on behalf of the program’s subscribers, and shall not be sold or otherwise disposed of. However, if a program is not fully subscribed, any such instruments created or obtained by the unsubscribed portion of the program may be sold or disposed of at no less than market value if the net proceeds of such sale or disposal are used to reduce the cost paid under the renewable pricing program.

(e) The board shall ensure that disclosures and representations made regarding renewable pricing programs are accurate, reasonably supported by objective data, disclose the types of technologies used, and clearly distinguish between energy or tradeable energy credits provided from renewable and nonrenewable sources, existing and new sources.

(f) Renewable pricing programs offered by a company shall be available to such customer classes as the board may determine.

(g) The board shall consider the following factors in deciding whether to approve a proposed renewable pricing program:

(1) minimization of marketing and administrative expenses;

(2) auditing or certification of sources of energy or tradeable renewable energy credits;

(3) marketing and promotion plans;

(4) effectiveness of the program in meeting the goals of promoting renewable energy generation and public understanding of renewable energy sources;

(5) retention by the program of renewable energy production incentives, tax incentives and other incentives earned or otherwise obtained by energy resources acquired pursuant to or as part of a renewable pricing program approved under this section to reduce the cost of any premiums paid under this section; and

(6) costs imposed on nonparticipating customers arising on account of the implementation of the renewable pricing program.

Sec. 3. 30 V.S.A. § 218d is added to read:

§ 218d. ALTERNATIVE REGULATION OF ELECTRIC AND NATURAL

GAS COMPANIES

(a) Notwithstanding section 218 and sections 225 - 227 of this title, upon petition of an electric or natural gas company, the public service board may, after opportunity for hearing, approve alternative forms of regulation for an electric or natural gas company; provided, however, in the case of a municipal plant or department formed under local charter or chapter 79 of this title, or an electric cooperative formed under chapter 81 of this title, any alternative forms of regulation approved by the board shall also be approved by a majority of the voters of a municipality or cooperative voting upon the question at a duly warned annual or special meeting held for that purpose. Before doing so, the board shall find that the proposed form of alternative regulation will:

(1) establish a system of regulation in which such companies have clear incentives to provide least-cost energy service to their customers;

(2) provide just and reasonable rates for service to all classes of customers;

(3) deliver safe and reliable service;

(4) offer incentives for innovations and improved performance that advance state energy policy;

(5) promote improved quality of service, reliability, and service choices;

(6) encourage innovation in the provision of service;

(7) establish a reasonably balanced system of risks and rewards that encourages the company to operate as efficiently as possible utilizing sound management practices; and

(8) provide a reasonable opportunity, under sound and economical management, to earn a fair rate of return, provided such opportunity must be consistent with flexible design of alternative regulation and with the inclusion of effective financial incentives in such alternatives.

(b) Alternative regulation may include such changes or additions to, waivers of, or alternatives to traditional rate making procedures, standards, and mechanisms, including substantive changes to rate base - rate of return rate setting, as the board finds will promote the public good and will support the required findings set out in subsection (a) of this section.*[

]*

(c) The public service board may establish, by rule or order, requirements governing the filing of a petition to approve an alternative regulation plan.

(d) The board shall act on the petition within 12 months of the filing of a petition that complies with the board’s rules.

(e) An alternative regulation plan shall take effect not sooner than 30 days following its approval by the board.

(f) The board may establish, by rule or order, and may amend from time to time, standards and procedures by which the effectiveness of the alternative form of regulation can be determined.

(g) The board, on its own motion, or the motion of the department of public service or a company operating under an alternative regulation plan pursuant to this section, may investigate any alternative regulation plan that is in effect. Following notice and an opportunity for hearing, the board may terminate or modify the alternative regulation plan upon a finding of good cause. Where the board revokes prior approval, the board shall determine whether the company’s current rates are just and reasonable, and, if not, shall establish new rates that are just and reasonable.

(h) Notwithstanding any provision of this section, a company may file for rates determined under and in accordance with sections 218, 225, 226, and 227 of this title, to be effective at the time of the termination of any approved alternative regulation plan.

(i) In the case of a municipal utility, the board shall approve an alternative regulation plan only if the board finds that the plan will:

(1) permit the municipal plant or department to fulfill all of its obligations, including its obligations to the holders of bonds issued under local charter or state law;

(2) not violate existing covenants in outstanding municipal bonds or in contracts securing bonds issued by the Vermont Public Power Supply Authority;

(3) not impair the municipality’s access to capital, including in the municipal bond market. The board will consider the opinion of the utility’s bond counsel in making this decision; and

(4) not impair the municipal utility’s ability to participate in future bond issues by the authority as contemplated by chapter 84 of this title. The board will consider the opinion of the Vermont Public Power Supply Authority in making this decision.

(j) In the case of an electric cooperative, the board shall approve an alternative regulation plan only if the board finds the plan will not violate covenants in existing mortgages, or impair the cooperative’s access to capital.

(k) In the case of an investor owned company, the board shall approve an alternative regulation plan only if the board finds the plan will:

(1) not have an adverse impact on the electric company’s eligibility for rate-regulated accounting in accordance with generally accepted accounting standards if applicable;

(2) reasonably preserve the availability of equity and debt capital resources to the company on favorable terms and conditions.

Sec. 4. 30 V.S.A. § 219a is amended to read:

§ 219a. Self-generation and net metering

(a) As used in this section:

(1) "Customer" means a retail electric consumer who uses a net metering system.

(2) "Net metering" means measuring the difference between the electricity supplied to a customer and the electricity fed back by a net metering; system during the customer’s billing period:

(A) using a single, nondemand meter or such other meter that would otherwise be applicable to the customer’s usage but for the use of net metering, or

(B) on farm systems, using multiple meters as specified in this chapter. The calculation will be made by converting all meters to a nondemand, nontime-of-day meter, and equalizing them to the tariffed kilowatt-hour rate.

(3) "Net metering system" means a facility for generation of electricity that:

(A) is of no more than 15 kilowatts (AC) capacity, or is a farm system;

(B) operates in parallel with facilities of the electric distribution system;

(C) is intended primarily to offset part or all of the customer’s own electricity requirements;

(D) is located on the customer’s premises; and

(E) employs a renewable energy source and utilizes a photovoltaic array, wind turbine *[or]*, fuel cell, biomass gasification and farm electrical generating technology*[, or is a farm system]*.

(4) "Farm system" means a facility of no more than *[125]* 150 kilowatts (AC) capacity that generates electric energy on a farm operated by a person principally engaged in the business of farming, as that term is defined in Regulation 1.175-3 of the Internal Revenue Code of 1986, from the anaerobic digestion of agricultural *[waste produced by farming, and which is located on a farm]* products, by-products or wastes, or other renewable sources as defined in subdivision (3)(E) of this subsection, intended to offset the meters designated under subdivision (g)(1)(A) of this section on the farm.

(b) A customer shall pay the same rates, fees or other payments and be subject to the same conditions and requirements as all other purchasers from the electric company in the same rate-class, except as provided for in this section, and except for appropriate and necessary conditions approved by the board for the safety and reliability of the electric distribution system.

(c) *[By March 1, 1999 the]* The board shall establish by rule or order standards and procedures governing application for, and issuance or revocation of a certificate of public good for net metering systems under the provisions of section 248 of this title. A net metering system shall be deemed to promote the public good of the state if it is in compliance with the criteria of this section, and board rules or orders. In developing such rules or orders, the board:

(1) may waive the requirements of section 248 of this title that are not applicable to net metering systems, including, but not limited to, criteria that are generally applicable to public service companies as defined in this title;

(2) may modify notice and hearing requirements of this title as it deems appropriate;

(3) shall seek to simplify the application and review process as appropriate; and

(4) shall find that such rules are consistent with state power plans.

(d) An applicant for a certificate of public good for a net metering system shall be exempt from the requirements of *[section]* subsection 202(f) of this title. Any certificate issued under this section shall be automatically transferred to any subsequent owner of the property served by the net metering system, provided, in accordance with rules adopted by the board, the board and the electric company are notified of the transfer, and the subsequent owner agrees to comply with the terms and conditions of the certificate.*[

]*

(e) Consistent with the other provisions of this title, electric energy measurement for net metering systems using a single nondemand meter that are not farm systems shall be calculated in the following manner:

(1) The electric company which serves the net metering customer shall measure the net electricity produced or consumed during the customer’s billing period, in accordance with normal metering practices.

(2) If the electricity supplied by the electric company exceeds the electricity generated by the customer and fed back to the electric distribution system during the billing period, then the customer shall be billed for the net electricity supplied by the electric company, in accordance with normal metering practices.

(3) If electricity generated by the customer exceeds the electricity supplied by the electric company:

(A) The customer shall be billed for the appropriate charges for that month, in accordance with subsection (b) of this section; *[and

]*

(B) The customer shall be credited for the excess kilowatt-hours generated during the billing period, with this kilowatt-hour credit appearing on the bill for the following billing period*[.]*; and

(C) At the beginning of each calendar year, any remaining unused kilowatt-hour credit accumulated during the previous year shall revert to the electric company, without any compensation to the customer.

(4) For net metering systems using time of day, demand or other types of metering, the board shall specify the manner of measurement and the application of bill credits for the electric energy produced or consumed in a manner substantially similar to that specified in this subsection for use with a single nondemand meter.

(f) Consistent with the other provisions of this title, electric energy measurement for net metering farm systems shall be calculated in the following manner:

(1) Net metering customers that are farm systems may credit on-site generation against all meters designated to the farm system under subdivision (g)(1)(A) of this section;

(2) Electric energy measurement for farm systems shall be calculated by subtracting total usage of all meters included in the farm system from total generation by the farm system. If the electricity generated by the farm system is less than the total usage of all meters included in the farm system during the billing period, the farm system shall be credited for any accumulated kilowatt-hour credit and then billed for the net electricity supplied by the electric company, in accordance with the procedures in subsection (g) of this section.

(3) If electricity generated by the farm system exceeds the electricity supplied by the electric company:

(A) The farm system shall be billed for the appropriate charges for each meter for that month, in accordance with subsection (b) of this section.

(B) Excess kilowatt-hours generated during the billing period shall be added to the accumulated balance with this kilowatt-hour credit appearing on the bill for the following billing period.

(C) Any accumulated kilowatt-hour credits shall be used within 12 months or shall revert to the electric company, without any compensation to the farm system.

(g)(1) In addition to any other requirements of section 248 of this title and this section and board rules thereunder, before a net metering farm system including more than one meter may be formed and served by an electric company, the proposed net metering farm system shall file with the board, with copies to the department and the serving electric company, the following information:

(A) the meters to be included in the farm system, which shall be associated with the farm buildings and residences owned or occupied by the person operating the farm system, the person’s family or farm employees, identified by account number and location;

(B) a method for adding and removing meters included in the farm system; and

(C) a designated person responsible for all communications from the farm system to the serving electric company, for receiving and paying bills for any service provided by the serving electric company for the farm system, and for receiving any other communications regarding the farm system net metering.

(D) a binding process for the resolution of any disputes within the farm system relating to net metering that does not rely on the serving electric company, the board or the department.

(2) The farm system shall, at all times, maintain a written designation to the serving electric company of a person who shall be the sole person authorized to receive and pay bills for any service provided by the serving electric company, and for receiving any other communications regarding the farm system or net metering.

(3) The serving utility shall implement appropriate changes to the farm system net metering within 30 days after receiving written notification from the designated person. However, written notification of a change in the person designated under subdivision (2) of this subsection shall be effective upon receipt by the serving utility. The serving utility shall not be liable for action based on such notification, but shall make any necessary corrections and bill adjustments to implement revised notifications.

(4) Pursuant to subsection 231(a) of this title, after such notice and opportunity for hearing as the board may require, the board may revoke a certificate of public good issued to a farm system.

(h) An electric company:

(1) Shall make net metering available to any customer using a net metering system or farm system on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals 1.0 percent of the distribution company’s peak demand during 1996 or the peak demand during the most recent full calendar year, whichever is less. An electric company may interconnect additional net metering systems above this capacity if found by the board to be in the public interest. In determining whether exceeding the cap is in the public interest, the board shall consider, without limitation, the following:

(A) any voluntary agreement that may be concluded between the affected utility and a customer or customers proposing a net metering system that would cause the cap to be exceeded;

(B) the costs and benefits of net metering systems already connected to the system; and

(C) the potential costs and benefits of exceeding the cap, including potential short and long-term impacts on rates, distribution system costs and benefits, reliability and diversification costs and benefits.

(2) Shall allow net metering systems to be interconnected using a kilowatt-hour meter capable of registering the flow of electricity in two directions or such other comparably equipped meter that would otherwise be applicable to the customer’s usage but for the use of net metering;

(3) May, at its own expense, and with the written consent of the customer, install one or more additional meters to monitor the flow of electricity in each direction; *[and]*

(4) Shall charge the customer a minimum monthly fee that is the same as other customers of the electric distribution company in the same rate class, but shall not charge the customer any additional standby, capacity, interconnection, or other fee or charge;

(5) May charge reasonable fees for interconnection, establishment, special meter reading, accounting, account correcting and account maintenance of farm system net metering arrangements;

(6) May charge, if the capacity of the distribution system is insufficient for the designed generation, subject to determination by the board, a reasonable fee to cover the cost of electric company improvements necessary to distribute power;

(7) May require that all meters included within a farm system be read on the same billing cycle;

(8) May book and defer, with carrying costs, additional incremental costs, to the extent that such costs are not recovered through charges authorized in subdivisions (4), (5) and (6) of this subsection, directly related to implementing farm system net metering;

(9) Shall receive from a farm system, which is designed to produce less energy than the total annual load of the meters identified in subdivision (g)(1)(A) of this section, any tradeable renewable credits for which the farm system is eligible. All other farm systems shall retain any tradeable renewable credits for which the farm is eligible;

(10) All such requirements shall be pursuant to and governed by a tariff approved by the board and any applicable board rule, which tariffs and rules shall be designed in a manner reasonably likely to facilitate net metering.

*[

(g)]*(i)(1) A net metering system using photovoltaic generation shall conform to applicable electrical safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronic Engineers, and Underwriters Laboratories. The customer shall be responsible for installation, testing, accuracy, and maintenance of net metering equipment.

(2) By March 1, 1999, the board shall adopt, by rule or order, electrical safety, power quality, and interconnection requirements for net metering equipment which uses generation technologies other than photovoltaic technology. In developing safety rules, and any amendments to those rules, the board shall solicit input from representatives of utilities and agents representing line workers.

(3) The board may adopt, by rule or order, additional safety, power quality, and interconnection requirements for customers that the board determines are necessary to protect public safety and system reliability.

(4) Pending the effective date of requirements adopted by the board under subsection (c) of this section and subdivision (2) of this subsection, an electric company may allow a customer to interconnect a net metering system to be operated as provided in this section, if the company is reasonably satisfied concerning the safety and power quality of the system. The customer may then operate the net metering system pending application for and receipt of a certificate of public good under subsection (c) of this section, provided such application shall be made within three months after the effective date of requirements adopted by the board under subsection (c).

(5) An electric company may, at its own expense, and upon reasonable written notice to the customer, perform such testing and inspection of a net metering system in order to confirm that the system conforms to applicable electrical safety, power quality, and interconnection requirements.

*[

(h)]*(j) Notwithstanding the provisions of this section that define a net metering system as being of no more than 15 kilowatts (AC) capacity, the board may allow net metering for up to *[five]* ten systems per year for customers that produce more than 15 kilowatts (AC) capacity, but do not produce more than *[100]* 150 kilowatts of power and *[do not use methane gas]* are not farm systems.

(k) Notwithstanding the provisions of subsections (f) and (g) of this section, an electric company may contract to purchase all or a portion of the output products from a farm system, provided:

(1) the farm system obtains a certificate of public good under the terms of subsections (c) and (d) of this section;

(2) any contracted power shall be subject to the limitations set forth in subdivision (h)(1) of this section;

(3) any contract shall be subject to interconnection and metering requirements in subdivisions (h)(3) and (i)(2) and (3) of this section;

(4) any contract may permit all or a portion of the tradeable renewable energy credits for which the farm system is eligible to be transferred to the electric company.

Sec. 5. 32 V.S.A. § 9741(46) is amended to read:

(46) Tangible personal property to be incorporated into:

(A) a net metering system as defined in 30 V.S.A. § 219a;

(B) a home or business energy system on a premises not connected to the electric distribution system of a utility regulated under Title 30 and that otherwise meets the requirements of 30 V.S.A. § 219a(a)(7)(A), (C), (D), and (E); or

(C) a hot water heating system that converts solar energy into thermal energy used to heat water, but limited to that property directly necessary for and used to capture, convert, or store solar energy for this purpose.

Sec. 6. 30 V.S.A. § 218(b) is amended to read:

(b) The department of public service shall, or an affected company may, propose, and the board through the establishment of rates of return, rates, tolls, charges or schedules shall encourage the implementation by electric and gas utilities of energy-efficiency and load management measures which will be cost-effective for the utilities and their customers on a life cycle cost basis and enable electric utility customers to voluntarily participate in renewable pricing programs pursuant to section 8003 of this title.

Sec. 7. REPORTS

(a) By no later than January 16, 2003, the department of public service shall submit a report and recommendations to the general assembly regarding the advisability of adopting statutes that establish additional energy efficiency appliance standards and regarding statutory and regulatory provisions related to the development, siting and permitting of renewable, sustainable and efficient energy generation sources, including wind, solar, biomass, methane and fuel cell installations, and combined heat and power applications.

(b) In preparing its report and recommendations, the department of public service shall engage in a process of consultation with interested parties, including the public service board; the environmental board; electric and gas utilities; representatives of the wind, solar, biomass, methane, fuel cell and combined heat and power industries; representatives of citizens, environmental and energy user groups; regional planning commissions; and municipal governments.

(c) The report shall include:

(1) A summary of past and current activities undertaken by interested parties to address barriers and to facilitate and promote development, siting and permitting of renewable, sustainable and efficient energy generation sources;

(2) Identification of statutory and regulatory provisions that either facilitate or act as barriers to the development of renewable, sustainable and efficient energy sources;

(3) A comparison and contrast of the existing processes for siting renewable, sustainable and efficient energy sources, including the processes under Act 250, 30 V.S.A. § 248, local zoning and land use regulation and regional development plans;

(4) Recommendations for changes to statutes, regulations and processes that will facilitate and promote the orderly and efficient development, siting and permitting of renewable, sustainable and efficient energy generation sources;

(5) Recommendations for changes to statutes, regulations and processes that will minimize regulatory burdens and expense, and efficiently utilize existing governmental expertise through intergovernmental partnerships and cooperation, while preserving and enhancing the public good, including public safety, energy conservation and efficiency, economic development and environmental protection; and

(6) Recommendations regarding the advantages and disadvantages of the general assembly adopting legislation establishing appliance and equipment energy efficiency standards, with particular consideration having been given to model legislation as prepared by the American Council for an Energy-Efficient Economy and the Appliance Standards Awareness Project.

(d) By January 15, 2006, the department of public service shall report to the general assembly on the implementation of this act.

Sec. 8. EFFECTIVE DATE

This act shall take effect upon passage.

(Committee vote: 8-0-3)

Rep. Marron of Stowe, for the Committee on Ways and Means, recommends that the bill ought to pass in concurrence when amended as recommended by the Committee on Commerce.

(Committee Vote: 11-0-0)

Rep. Voyer of Morristown, for the Committee on Appropriations, recommends the bill ought to pass in concurrence when amended as recommended by the Committee on Commerce and when further amended as follows:

First: In Sec. 2, 30 V.S.A. § 8001(a), by adding subdivisions (5) and (6) to read as follows:

(5) Programs, to the extent practicable shall rely on markets to influence direction and outcomes.

(6) Science and sound risk management shall govern the balance between energy production and environmental protection.

Second: In Sec. 3, 30 V.S.A. § 218d(d), by striking "12" and inserting in lieu thereof "six"

Third: in Sec. 4, 30 V.S.A. § 219a(h), by striking subdivision (1) in its entirety and inserting a new subdivision (1) to read as follows:

(1) Shall make net metering available to any customer using a net metering system or farm system on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals 1.0 percent of the distribution company's peak demand during 1996*[. An electric company may interconnect additional net metering systems above this capacity if found by the board to be in the public interest;]* or the peak demand during the most recent full calendar year, which ever is less; provided, however, an electric company and a farm system may jointly petition the board to exceed this capacity. In determining whether to exceed the cap, the board shall consider the following:

(A) the costs and benefits of net metering systems already connected to the system; and

(B) the potential costs and benefits of exceeding the cap, including potential short and long-term impacts on rates, distribution system costs and benefits, reliability and diversification costs and benefits.

and in subdivision (8), by striking "book and defer, with carrying costs," and inserting in lieu thereof "charge reasonable fees to recover"

(Committee vote: 11-0-0)

Amendment to be offered by Rep. Goodridge of Albany to S. 264

Moves to amend the proposal of amendment of the Committee on Commerce by adding two new sections to read:

Sec. 6a. REPEAL

30 V.S.A. § 209(d)(3) and (4) (charge to support energy efficiency programs) are repealed on July 1, 2004.

Sec. 6b. PHASE OUT OF THE ENERGY EFFICIENCY CHARGE

The charge established by the Public Service Board pursuant to 30 V.S.A. § 209(d)(3), shall be reduced by one-third annually, beginning July 1, 2002.

(For text see Senate Journal 3/27/02 – p. 611; 3/28/02 – p. 644 )

Reports Committees of Conference

H. 31

The Committee of Conference to which were referred the disagreeing votes of the two Houses upon House Bill entitled:

AN ACT RELATING TO PRESCRIPTION DRUG COST CONTAINMENT AND AFFORDABLE ACCESS.

Respectfully report that they have met and considered the same and recommend that the House accede to the Senate proposal of amendment and that the bill be further amended as follows:

First: In Sec. 1, in § 1998(a), by striking subdivision (4) and renumbering the remaining subdivisions to be numerically correct, in Sec. 1, in § 1998(f), by striking subdivision (4) and renumbering the remaining subdivisions to be numerically correct, in Sec. 1, in § 1999(e), by striking subdivision (7), and in Sec. 1, by striking § 2004.

Second: In Sec. 1, in § 1998(a), by inserting the following:

(6) Alternative pricing mechanisms, including consideration of using maximum allowable cost pricing for generic and other prescription drugs.

(7) Alternative coverage terms, including consideration of providing coverage of over-the-counter drugs where cost-effective in comparison to prescription drugs, and authorizing coverage of dosages capable of permitting the consumer to split each pill if cost-effective and medically appropriate for the consumer.

and by renumbering the remaining subdivision to be numerically correct

Third: In Sec. 1, in § 1998, by striking subsection (b) and inserting in lieu thereof the following:

(b) The commissioner shall implement the pharmacy best practices and cost control program for Medicaid and all other state public assistance program health benefit plans to the extent permitted by federal law.

Fourth: In Sec. 1, in § 1998(c), by inserting the following:

(7) The commissioner, the commissioner of personnel, the commissioner of banking, insurance, securities and health care administration, and the secretary of human services shall establish a collaborative process with the Vermont Medical Society, pharmacists, health insurers, consumers, employer organizations and other health benefit plan sponsors, the Northeast Legislative Association on Prescription Drug Pricing, pharmaceutical manufacturer organizations, and other interested parties designed to consider and make recommendations to reduce the cost of prescription drugs for all Vermonters.

Fifth: In Sec. 1, in § 1998(d), by adding a second, third and fourth sentence to read:

"The commissioner shall supervise the implementation and operation of the pharmacy best practices and cost control program, including developing and maintaining the preferred drug list, to carry out the provisions of the subchapter. The commissioner may include such insured or self-insured health benefit plans as agree to use the preferred drug list or otherwise participate in the provisions of this subchapter. The purpose of this subchapter is to reduce the cost of providing prescription drugs while maintaining high quality in prescription drug therapies."

Sixth: In Sec. 1, in § 1998(f)(5), by striking the following: "newly-approved" and inserting in lieu thereof the following: "newly approved"

Seventh: In Sec. 1, in § 1999, by striking subsection (a) and inserting in lieu thereof the following:

(a)(1) The pharmacy best practices and cost control program shall authorize pharmacy benefit coverage when a patient’s health care provider prescribes a prescription drug not on the preferred drug list, or a prescription drug which is not the list’s preferred choice, if either of the circumstances set forth in subdivision (2) or (3) of this subsection applies.

(2)(A) The program shall authorize coverage under the same terms as coverage for preferred choice drugs if the prescriber determines, after consultation with the pharmacist, or with the participating health benefit plan if required by the terms of the plan, that:

(i) the preferred choice has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient’s condition; or

(ii) the preferred choice causes or is reasonably expected to cause adverse or harmful reactions in the patient.

(B) The prescriber’s determination concerning whether the standards established in this subdivision (2) have been demonstrated shall be final.

(3) The program shall authorize coverage if the patient agrees to pay any additional cost in excess of the benefits provided by the patient’s health benefit plan which is participating in the program. The provisions of this subdivision (3) shall not apply to the extent that they may be inconsistent with any federal Medicaid laws and regulations. The provisions of this subdivision (3) shall not affect implementation by a participating health benefit plan of tiered copayments or other similar cost sharing systems.

Eighth: In Sec. 1, in § 1999, by striking subsection (d) and inserting in lieu thereof the following:

(d) The program’s prior authorization process shall not apply to prescription drugs prescribed for the treatment of severe and persistent mental illness including schizophrenia, severe depression, or bipolar disorder.

Ninth: In Sec. 1, in § 1999(e), by striking subdivision (5) and inserting in lieu thereof the following:

(5) In emergency circumstances, or if the response to a request for prior authorization is not provided within the time period established in subdivision (4) of this subsection, a 72-hour supply of the drug prescribed shall be deemed to be authorized by the program or the participating health benefit plan, provided it is a prescription drug approved by the Food and Drug Administration, and provided, for drugs dispensed to a Medicaid beneficiary, it is subject to a rebate agreement with the Centers for Medicare and Medicaid Services.

Tenth: In Sec. 1, in § 2002, by striking subsection (b) and inserting in lieu thereof the following:

(b) The commissioner shall negotiate supplemental rebates, price discounts, and other mechanisms to reduce net prescription drug costs by means of any negotiation strategy which the commissioner determines will result in the maximum economic benefit to the program and to consumers in this state, while maintaining access to high quality prescription drug therapies. The provisions of this subsection do not authorize agreements with pharmaceutical manufacturers whereby financial support for medical services covered by the Medicaid program is accepted as consideration for placement of one or more prescription drugs on the preferred drug list. The January 1, 2003 report of the commissioner pursuant to subsection 2001(d) of this title shall include a cost-benefit analysis of alternative negotiation strategies, including the strategy used by the State of Florida to secure supplemental rebates, the strategy used by the State of Michigan to secure supplemental rebates, and any other alternative negotiation strategy that might secure lower net prescription drug costs.

c) The commissioner and the department shall prohibit the public disclosure of information revealing company-identifiable trade secrets (including rebate and supplemental rebate amounts, and manufacturer’s pricing) obtained by the department, and by any officer, employee or contractor of the department in the course of negotiations conducted pursuant to this section. Such confidential information shall be exempt from public disclosure under subchapter 3 of Chapter 5 of Title 1, Vermont Statutes Annotated (open records law).

Eleventh: In Sec. 1, in § 2003, by striking subsection (b) and inserting in lieu thereof the following:

(b) The pharmacy discount plan authorized by this section 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.

Twelfth: In Sec. 1, by striking § 2005 and inserting in lieu thereof the following:

§ 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 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 be made on a form and in a manner prescribed by the board. 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.

(2) Each company subject to the provisions of this section shall also disclose to the board, on or before October 1, 2002 and annually thereafter, 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.

(b) The attorney general may bring an action in Washington superior court for injunctive relief, costs, and attorneys fees, and to impose on a pharmaceutical manufacturing company that fails to disclose as required by subsection (a) of this section a civil penalty of no more than $10,000.00 per violation. Each unlawful failure to disclose shall constitute a separate violation.

(c) As used in this section:

(1) "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) "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.

Thirteenth: By striking Sec. 2 and inserting in lieu thereof the following:

Sec. 2. SECTION 1115 WAIVER FOR PHARMACEUTICAL PROGRAMS

(a) The commissioner shall request a Section 1115 waiver or waiver amendment in order to maximize federal financial participation in Vermont’s state pharmaceutical assistance programs, and in order to preserve Vermonters’ continued access to such programs, unless the commissioner determines that such waiver or waiver amendment will not provide a financial benefit to the state of Vermont over the long term. The commissioner shall report to the health access oversight committee if she determines not to apply for such a waiver, or if she determines to apply for a waiver that is not consistent with the principles established in subsection (b) of this section in whole or in part.

(b) The waiver request shall conform to the following principles unless deviation is necessary to conduct successful negotiations with the Centers for Medicare and Medicaid Services:

(1) The waiver request shall propose a financially sustainable program designed to provide access to medically necessary prescription drugs for low income, elderly and disabled Vermonters.

(2) The waiver request shall propose to include all beneficiaries enrolled in the VScript-Expanded program (175 to 225 percent of the federal poverty level) in the Medicaid waiver population group.

(3) The waiver request shall consolidate and streamline program administration of and eligibility for Vermont’s pharmaceutical assistance programs.

(4) The benefit plan and cost sharing provisions shall be designed to provide financial assistance and benefits based on the beneficiary’s household income.

Sec. 2a. APPLICATION OF PREFERRED DRUG LIST TO NURSING

HOME PATIENTS

During fiscal year 2003, the preferred drug list of the department of prevention, assistance, transition and health access shall not apply to Medicaid coverage of prescriptions for beneficiaries residing in a nursing home, including the Vermont Veterans Home until the department proposes and the health access oversight committee approves a plan to notify and educate nursing home patients, their prescribers, and their pharmacy concerning the preferred drug list and the prior authorization process, and to ensure that Medicaid is securing the best price for cover drugs prescribed for nursing home residents. The department shall propose a plan to the committee by July 1, 2002.

Fourteenth: By adding a new section to read:

Sec. 2b. 26 V.S.A. § 2032(c)(5) is added to read:

(c) The board of pharmacy shall also have the following responsibilities in regard to medications, drugs, devices and other materials used in this state in the diagnosis, mitigation and treatment or prevention of injury, illness, and disease:

* * *

(4) The issuance of certificates of registration and licenses of drug outlets;

(5) The development of criteria for a standardized tamper-resistant prescription pad that can be used by all health care providers who prescribe drugs. Such criteria shall be developed in consultation with pharmacists, hospitals, nursing homes, physicians and other prescribers, and other affected parties.

Fifteenth: By striking Sec. 3

Sixteenth: By striking Sec. 5 and inserting in lieu thereof the following:

Sec. 5. EFFECTIVE DATE

This act shall take effect on passage, except that:

(1) Sec. 1, 33 V.S.A. § 1999 (consumer protection rules), shall take effect 60 days after passage; and

(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.

Seventeenth: In Sec. 6, in subsection (a), by striking the first sentence and inserting in lieu thereof the following: "Vermont's health care policies shall promote outcomes based assessment and treatment through the development of a statewide quality assurance system and an effective quality improvement process that integrates best practices research, functional status assessment, patient satisfaction measurements and cost containment goals."

Peter Shumlin

Nancy Chard

John Bloomer

Committee on the part of the Senate

Thomas F. Koch

Kevin J. Mullin

Patricia O’Donnell

Committee on the part of the House

S.196

The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate Bill entitled:

AN ACT RELATING TO EMPLOYEE OF A LICENSEE PROVIDING ALCOHOL TO A PERSON UNDER 21 DURING A COMPLIANCE CHECK.

Respectfully report that they have met and considered the same and recommend that the Senate accede to the House proposal of amendment and that the amendment be further amended by striking Secs. 2 and 3 and inserting in lieu thereof the following:

Sec. 2. 7 V.S.A. § 1002a is added to read:

§ 1002a. LICENSEE EDUCATION

(a) An applicant for a tobacco license that does not hold a liquor license issued under this title shall be granted a tobacco license pursuant to section 1002 of this title only after the applicant has met with a liquor control investigator for the purpose of being informed about the Vermont tobacco laws pertaining to the purchase, storage and sale of tobacco products. A corporation, partnership or association shall designate a director, partner or manager to comply with the requirements of this subsection.

(b) The holder of a tobacco license that does not also hold a liquor license issued pursuant to this title for the same premises shall:

(1) Complete the department’s enforcement seminar at least once every three years. A corporation, partnership or association shall designate a director, partner or manager to comply with this subdivision.

(2) Ensure that every employee involved in the sale of tobacco products completes a training program approved by the department of liquor control before the employee begins selling or providing tobacco products and at least once every 24 months thereafter. A licensee may comply with this subdivision by conducting its own training program on its premises using information and materials furnished by the department of liquor control. A licensee who fails to comply with the requirements of this subsection shall be subject to suspension of the tobacco license for no less than one day.

Allen Palmer

James Willett

Loren Shaw

Committee on the part of the House

James Greenwood

Janet Munt

William Corrow

Committee on the part of the Senate

(For text see House Journal 5/14/02 – p. 1515; 5/15/02 – p. 1527)

S.259

The Committee of Conference to which were referred the disagreeing votes of the two Houses upon Senate Bill entitled:

S.259. AN ACT RELATING TO TRANSFER OF A CONTRACT LIQUOR AGENCY.

Respectfully report that they have met and considered the same and recommend the Senate accede to the House proposal of amendment and that the amendment be further amended by striking Secs. 2 through 9 and inserting in lieu thereof the following:

Sec. 2. SALE OF HIGH ALCOHOL WINES; STUDY

(a) The commissioner of liquor control, in consultations with second class licensees and other interested parties, shall determine the extent of consumer demand for high alcohol content wines, a reasonable method of distributing those wines to second class license holders, appropriate enforcement mechanisms, including limitations on distribution of certain of these wines, and taxation mechanisms that preserve or enhance the revenues derived from the sale of those wines.

(b) The commissioner shall submit a report on or before January 15, 2003. The report shall include the conclusions and recommendations of the study and a list of the second class licensees and other parties consulted.

Allen Palmer

James Willett

Loren Shaw

Committee on the part of the House

James Greenwood

Janet Munt

George Costes

Committee on the part of the Senate

(For text see Senate Journal 1/30/02 – p. 144 )

(For text see House Journal 5/14/02 – p. 1500)

S. 298

The Committee of Conference, to which were referred the disagreeing votes of the two Houses upon Senate Bill S.298, entitled:

AN ACT RELATING TO CRIMES AND PROCEDURES INVOLVING TERRORISM

Respectfully report that they have met and considered the same and recommend 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. SHORT TITLE

This act shall be known as, and may be cited as, the Vermont Public Safety Act of 2002.

Sec. 2. STATEMENT OF PURPOSE

(a) The events of September 11, 2001 require the State of Vermont to have the legal means to respond to acts of terrorism against its citizens. Although such attacks remain unlikely, Vermont should have the ability to protect the public health and safety of its citizens in state courts under state law in the event that terrorist acts occur here. Vermont will be best able to work with other states and the federal government to efficiently and effectively prosecute these crimes if a statutory scheme is in place criminalizing certain acts of terrorism. A Vermont law will achieve this goal by providing a necessary complement to state and federal laws in the fight against terrorism, and by better protecting all citizens from terrorist acts.

(b) It is not the intent of the General Assembly, however, that this bill in any way infringe on our constitutionally-guaranteed rights, such as the freedoms of speech, religion, assembly and association. Sacrificing these

hard-won rights in the name of fighting terrorism would play into the hands of terrorists by compromising the very values we seek to defend.

(c) The Vermont Public Safety Act of 2002 is, therefore, intended to provide the state with tools to protect it and its citizens against terrorism, to allow Vermont to cooperate with other states and the federal government to prevent acts of terrorism, and to achieve these goals without infringing upon the constitutional and civil rights which make both our nation and our state so worth defending.

Sec. 3. 13 V.S.A. chapter 76 is added to read:

CHAPTER 76. WEAPONS OF MASS DESTRUCTION

§ 3501. DEFINITIONS

(a) As used in this chapter:

(1) "Chemical warfare agents" means:

(A) Any weaponized toxic or poisonous chemical, including the following agents or any analog of the following agents:

(i) Nerve agents, including Tabun (GA), Sarin (GB), Soman (GD), GF, and VX.

(ii) Choking agents, including Phosgene (CG) and Diphosgene (DP).

(iii) Blood agents, including Hydrogen Cyanide (AC), Cyanogen Chloride (CK), and Arsine (SA).

(iv) Blister agents, including mustards (H, HD (sulfur mustard), HN-1, HN-2, HN-3 (nitrogen mustard)), arsenicals, such as Lewisite (L), urticants, such as CX, and incapacitating agents, such as BZ.

(B) A dangerous chemical or hazardous material generally utilized in an industrial or commercial process when a person knowingly and intentionally utilizes the material with the intent to cause harm, and the use places persons at risk of serious bodily injury or death, or endangers the environment.

(2) "Health care provider" means a person, partnership, corporation, facility or institution, licensed, certified or authorized, by law, to provide professional health care service in this state to an individual during that individual’s medical care, treatment or confinement.

(3) "Hoax weapon" means any substance, compound, or other item intended to convey the physical appearance or chemical properties of a weapon of mass destruction or asserted to contain a weapon of mass destruction, which is not a weapon of mass destruction or does not contain a weapon of mass destruction.

(4) "Law enforcement agency" means:

(A) A federal law enforcement agency, including the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, Military Police or Military Criminal Investigative Division, United States Marshals Service, Secret Service, Federal Emergency Management Agency, or the Department of Defense Threat Reduction Agency.

(B) One of the following Vermont law enforcement agencies:

(i) The department of public safety.

(ii) A municipal police department.

(iii) A sheriff’s department.

(iv) The attorney general’s office.

(v) A state’s attorney’s office.

(vi) The capitol police department.

(5) "Nuclear or radiological agents" means any improvised nuclear device (IND) which is any explosive device designed to cause a nuclear yield, any radiological dispersal device (RDD) which is any explosive device utilized to spread radioactive material, or a simple radiological dispersal device (SRDD) which is any container designed to release radiological material as a weapon without an explosion.

(6) "Vector" means a living organism or a molecule, including a recombinant molecule, or a biological product that may be engineered as a result of biotechnology, that is capable of carrying a biological agent or toxin to a host.

(7) "Weapon of mass destruction" means a chemical warfare agent, weaponized biological or biologic warfare agent, nuclear agent, or radiological agent.

(8) "Weaponization" means the deliberate processing, preparation, packaging, or synthesis of any substance or agent for use as a weapon or munition. "Weaponized agents" means those agents or substances that have been prepared for dissemination through any explosive, thermal, pneumatic, mechanical or other means.

(9) "Weaponized biological or biologic warfare agents" means:

(A) weaponized pathogens, including bacteria, viruses, rickettsia, yeasts, or fungi;

(B) genetically-engineered pathogens;

(C) weaponized toxins;

(D) weaponized vectors; and

(E) weaponized endogenous biological regulators (EBRs).

(b) The lawful use of chemicals for legitimate mineral extraction, industrial, agricultural, or commercial purposes is not proscribed by this chapter.

§ 3502. Possession and Use of Weapons of Mass

Destruction

(a) A person who knowingly and without lawful authority possesses, develops, manufactures, produces, transfers, acquires, or stockpiles any weapon of mass destruction shall be imprisoned not more than 20 years or fined not more than $100,000.00, or both.

(b) A person who uses or directly employs against other persons a weapon of mass destruction in a form that may cause disabling illness or injury in human beings shall be imprisoned not less than 20 years nor more than life and fined not more than $250,000.00.

(c) A person who uses a weapon of mass destruction in a form that may cause widespread damage to or disruption of water or food supplies shall be imprisoned not less than five years nor more than 30 years and fined not more than $250,000.00.

(d) A person who uses a weapon of mass destruction against livestock or crops with the intent to cause widespread and substantial damage to livestock or crops shall be imprisoned not more than 30 years and fined not more than $250,000.00.

(e) A person who uses a weapon of mass destruction in a form that may cause widespread and significant damage to public or private property shall be imprisoned not more than 30 years and fined not more than $250,000.00.

(f) A person who uses recombinant technology or any other biological advance to create new pathogens or more virulent forms of existing pathogens for the purpose of creating a weapon of mass destruction shall be imprisoned not more than 20 years or fined not more than $250,000.00, or both.

(g) A person who knowingly and intentionally places a hoax weapon in any public place, building, house, residence, facility of public transport, vehicular conveyance, train, ship, boat, aircraft, dam or reservoir for storing water, shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

(h) No university, research institution, private company, individual, or hospital engaged in scientific or public health research and, as required, registered with the Centers for Disease Control and Prevention (CDC) pursuant to part 113 (commencing with Section 113.1) of subchapter E of chapter 1 of Title 9 or pursuant to Part 72 (commencing with Section 72.1) of Subchapter E of Chapter 1 of Title 42 of the Code of Federal Regulations, or any successor provisions, shall be subject to this section.

(i) Nothing in this section shall be construed to limit or restrict prosecution under any other applicable laws.

§ 3503. THREATS

(a) No person shall communicate a threat to use a weapon of mass destruction, knowing that the threat is likely to cause:

(1) evacuation of a building, place of assembly, or facility of public transport; or

(2) a person to fear serious bodily injury.

(b) A person who violates this section shall:

(1) For a first offense, be imprisoned for not more than two years or fined not more than $5,000.00, or both.

(2) For a second or subsequent offense, be imprisoned for not more than five years or fined not more than $10,000.00, or both.

(c) It shall not be a defense to a prosecution under this section that the defendant did not have the capability or means of committing the specified offense or that the threat was not made to a person who was a subject thereof. The foregoing shall not impair a defendant’s right to assert a defense based upon insanity or diminished capacity.

(d) Nothing in this section shall be construed to limit or restrict prosecution under any other applicable laws.

§ 3504. Reporting ILLNESSES, DISEASES, INJURIES AND DEATHS ASSOCIATED WITH WEAPONS OF MASS DESTRUCTION

(a)(1) Illness, disease, injury or death. A health care provider shall report all cases of persons who exhibit any illness, disease, injury or death identified by the department of health as likely to be caused by a weapon of mass destruction, which may include illnesses, diseases, injuries or deaths which:

(A) can result from bioterrorism, epidemic or pandemic disease, or novel and highly fatal infectious agents or biological toxins, and might pose a risk of a significant number of human fatalities or incidents of permanent or long-term disability; or

(B) may be caused by the biological agents listed in 42 C.F.R. Part 72, Appendix A.

(2) This section does not authorize, nor shall it be interpreted to authorize, unreasonable searches and seizures by public health care employees; nor does this section authorize performance of diagnostic tests or procedures for the specific purpose of incriminating patients, unless the patient consents to such specific tests or procedures after notice of his or her constitutional rights and knowing waiver of them.

(3) Health care providers who make good faith reports to the department of health under this section shall be immune from prosecution, suit, administrative or regulatory sanctions for defamation, breach of confidentiality or privacy, or any other cause of action based on such reports or errors contained in such reports.

(b) Pharmacists. A pharmacist shall report any unusual or increased prescription requests, unusual types of prescriptions, or unusual trends in pharmacy visits that may result from bioterrorist acts, epidemic or pandemic disease, or novel and highly fatal infectious agents or biological toxins, and might pose a substantial risk of a significant number of human fatalities or incidents of permanent or long-term disability. Prescription-related events that require a report include, but are not limited to:

(1) an unusual increase in the number of prescriptions to treat fever, respiratory or gastrointestinal complaints;

(2) an unusual increase in the number of prescriptions for antibiotics;

(3) an unusual increase in the number of requests for information on over-the-counter pharmaceuticals to treat fever, respiratory or gastrointestinal complaints; and

(4) any prescription that treats a disease that is relatively uncommon and may be the result of bioterrorism.

(c)(1) Manner of reporting. A report made pursuant to subsection (a) or (b) of this section shall be made in writing within 24 hours to the commissioner of health, or designee.

(2) The report shall include as much of the following information as is available:

(A) The patient’s name, date of birth, sex, race and current address (including city and county).

(B) The name and address of the health care provider, and of the reporting individual, if different.

(C) Any other information as determined by the commissioner of health.

(3) The department of health shall establish a form, which may be filed electronically, for use in filing the reports required by this subsection.

(d)(1) Animal diseases. Every veterinarian, livestock owner, veterinary diagnostic laboratory director or other person having the care of animals, shall report animals having or suspected of having any disease that can result from bioterrorism, epidemic or pandemic disease, or novel and highly fatal infectious agents or biological toxins, and might pose a risk of a significant number of human and animal fatalities or incidents of permanent or long-term disability.

(2) A report made pursuant to this subsection shall be made, in writing, within 24 hours to the commissioner of health or designee, and shall include as much of the following information as is available: the location or suspected location of the animal, the name and address of any known owner, and the name and address of the reporting individual.

(e) Laboratories. For purposes of this section only, the term "health care provider" shall also include out-of-state medical laboratories that have agreed to the reporting requirements of this state. Results must be reported by the laboratory that performs the test, but an in-state laboratory that sends specimens to an out-of-state laboratory is also responsible for reporting results.

(f) Enforcement. The department of health may enforce the provisions of this section in accordance with chapters 3 and 11 of Title 18.

(g) Disclosure. Information collected pursuant to this section and in support of investigations and studies undertaken by the commissioner in response to reports made pursuant to this section shall be privileged and confidential. This subsection shall not apply to the disclosure of information to a law enforcement agency for a legitimate law enforcement purpose.

(h) Rulemaking. The commissioner of health shall, after consultation with the commissioner of public safety, adopt rules to implement this section. The rules adopted pursuant to this subsection shall include methods to ensure timely communication from the department of health to the department of public safety.

Sec. 4. REPORT

The administration shall, after studying the issue collaboratively with the attorney general, the department of state’s attorneys, the defender general, the department of health, health care professionals and the American Civil Liberties Union of Vermont, report to the senate and house committees on judiciary on or before December 1, 2002 on whether there is a need for additional legislation in Vermont to address threats to public safety posed by terrorism.

Harvey Otterman

Duncan Kilmartin

Sylvia Kennedy

Committee on the part of the House

Richard Sears

John Bloomer

John Campbell

Committee on the part of the Senate

(For text see Senate Journal 4/12/02 – p. 732 )

(For text see House Journal 5/15/02 – p. 1534; 5/16/02 – p. 1566)

 

Ordered to Lie

H. 630

An act relating to sale of malt and vinous beverages.

Pending Action: Third reading of the bill.

H. 674

An act relating to the development of railroad infrastructure through an exemption from the Act 250 process.

Pending Question: Shall the bill be read a third time?

INFORMATION NOTICE

The following items were recently received by the Joint Fiscal Committee:

JFO #2048 – $93,756 contract from the U.S. Department of Education, National Center for Education Statistics to the Education Department. This contract will provide funding for salary, benefits, operating expenses and overhead for a National Assessment of Educational Progress state coordinator to oversee annual student assessments in reading and math. Joint Fiscal Committee approval is being requested for one (1) limited service sponsored position – Education Programs Coordinator II – for the duration of the contract.
[JFO received 05/27/02]

JFO #2049 – $70,000 grant from the Robert Wood Johnson Foundation to the Department of Prevention, Assistance, Transition and Health Access. These grant funds will be used to support planning improvements in care for low-income people diagnosed with depression.

[JFO received 05/27/02]

JFO #2050 – $398,250 grant from the Center for Health Care Strategies to the Department of Prevention, Assistance, Transition and Health Access, Office of Vermont Health Access. These grant funds (matched with federal funds) will be used to adapt a nationally accepted model for chronic illness care to the specific needs of low-income populations and the clinicians who serve them.

[JFO received 05/27/02]

JFO #2051 – $29,270 grant from the U.S. Department of Agriculture, Food and Nutrition Service to the Department of Aging and Disabilities. This Seniors Farmers’ Market Nutrition Program will be coordinated between the Department of Aging and Disabilities, the Department of Agriculture, Food and Markets and the Office of Economic Opportunity. The grant funds will be used to provide purchase coupons for eligible low-income seniors to use at farmers markets.

[JFO received 05/27/02]

JFO #2052 – $150,000 grant from the U.S. Department of Health and Human Services, Maternal and Child Health Bureau to the Health Department. These grant funds will be used to support an integrated newborn screening program and will be combined with JFO #1979 (early hearing loss detection, intervention and tracking activities grant). This will allow the Department to integrate these activities through a new "Newborn Screening" unit within the Children with Special Health Needs section. Spending authority of $75,000 is being requested for this fiscal year and Joint Fiscal Committee approval is being requested for two (2) limited service sponsored positions – one (1) Secretary C and one (1) Newborn Screening Coordinator – for the duration of the grant.

[JFO received 05/29/02]

INDEX

Action Calendar

No. Subject Action Page

H.708 Diplomas for Veterans Conf. Cmte. 2133

S.27 Wastewater disposal 3rd Reading 2135

S.138 Labeling of electricity 3rd Reading 2135

S.151 Abandoned Vehicles 3rd Reading 2135

S.241 Acupuncture 3rd Reading 2135

S.300 Senate / House Redistricting 3rd Reading 2135

H. 519 Emergency Generating Facilities Senate Prop 2137

JCRH.51 Lawton School "Freedom Quilt" Consent 2146

JCRS 11 William A. Bartlett Retirement Consent 2146

Notice Calendar

H. 761 Professional Regulation 2nd Reading 2147

S. 264 Renewable Electric Generation 2nd Reading 2150

H. 31 Prescription Drugs Conf. Cmte 2167

S. 196 Compliance Checks Conf. Cmte 2174

S. 259 Transfer Liquor Agency Contract Conf. Cmte 2175

S. 298 Crimes Involving Terrorism Conf. Cmte 2176