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NO. 62. AN ACT RELATING TO CAPITAL APPROPRIATIONS AND STATE BONDING.

(H.455)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. THE JOHN J. ZAMPIERI STATE OFFICE BUILDING

The newly constructed state office building at 108 Cherry Street in Burlington is named the "John J. Zampieri State Office Building". At both the Cherry Street and the Pearl Street entrances to the building, a sign shall be installed above the entrance inscribed in eight-inch letters as follows: "John J. Zampieri State Office Building"; and a plaque shall be installed at the entrance on the wall of the building inscribed as follows: "John J. Zampieri State Office Building. Commissioner of State Buildings, 1985-1997. State Representative from Ryegate, 1965-1984. In Honor of His Devoted Public Service to the Citizens of Vermont".

* * * Appropriations * * *

Sec. 2. STATE BUILDINGS

The sum of $11,530,000 is appropriated to the department of buildings and general services for:

(a) Activities within the Capitol Complex:

(1) State House:

(A) Repair and paint drum beneath the dome, and life

safety improvements: $ 100,000.

(B) Finish restoration of first floor, supplemental lighting

in first floor committee rooms, and restoration of lobby, including

vestibule reconstruction. The department of buildings and general

services shall retain the services of independent contractors to assist

with designing and installing supplemental lighting for the first floor

committee and public meeting rooms, and for the first floor hallways

and lobbies. This appropriation shall be matched with funds from

nonstate sources: $ 150,000.

(C) Equipment purchase and installation of necessary

infrastructure for cable television broadcast of meetings and

hearings from Rooms 10 and 11: $ 25,000.

(D) Reexamine the space needs of house standing

committees within the State House, in consultation with members

of the legislature and legislative staff, which shall include examination

of the feasibility of reconstructing the "attic" area above the third floor

of the annex currently occupied by house standing committees, for use

as legislative committee rooms. The commissioner of buildings and

general services shall by January 15, 1998 report findings,

recommendations and preliminary designs to the house and senate

institutions committees.

(2) 6 Baldwin Street, repair concrete parapet: $ 25,000.

(3) 133 State Street, plan life safety improvements: $ 100,000.

(4) 109 State Street, Pavilion Building, porch repairs;

the commissioner shall investigate the use of inmates and of

the Vermont corrections industry to assist with this project: $ 30,000.

(b) Activities at various locations:

(1) Newport, state office building and waterfront complex:

(A) Further site acquisition and construction;

(B) The conference room located on the top floor on the Northwest

side of the building shall first be available for use by area not-for-profit groups

and organizations and for state meetings and functions scheduled in Newport City

by state agencies and officials who do not have assigned space in other portions

of the building;

(C) A storage area shall be available for use by

the Memphremagog Historical Society (MHS) for displays

and other information and other services provided to the

public. Designated hallways and walls of the building and

conference room areas shall be designed and available for

wall hangings and displays for use by the MHS in a manner

approved by the commissioner of buildings and general

services. Notwithstanding section 165(h) of Title 29,

the space occupied by the society shall be provided at

no cost to the society. Signage, maintenance, custodial

services and utilities may at the discretion of

the commissioner be provided at state expense: $ 6,250,000.

(2) Springfield, state office building, site acquisition and

construction: $ 1,000,000.

(3) Pittsford:

(A) Police Academy, renovations: $ 15,000.

(B) Fire Service Training Council, speciality training

equipment: $ 100,000.

(4) Williston, Williston state office building, construct

"public service answering point": $ 345,000.

(5) Burlington, lease with an option to purchase and

fit-up for use as a state office building the former McAuliffe

Office Products building on Cherry Street: $ 1,000,000.

(6) Vergennes, former Weeks School, Andrews Building,

renovations are authorized with funds other than from an

appropriation of this or any past or future capital construction act.

(c) Springfield, Massachusetts, Eastern States

Exposition Building, renovations: $ 30,000.

(d) Statewide activities:

(1) Architectural barrier removal: $ 100,000.

(2) Contingency fund: $ 250,000.

(3) Engineering staff costs: $ 500,000.

(4) Indoor air quality improvements: $ 150,000.

(5) Major maintenance: $ 1,335,000.

(6) Planning: $ 25,000.

(e) The commissioner of buildings and general services shall propose no later than July 1, 1997, and the legislative advisory committee on the State House may by majority vote affirmatively disapprove no later than September 1, 1997, a sound notification system for use by the house and senate which shall be coordinated with a light notification system that complies with federal law concerning individuals with disabilities. Unless disapproved by the committee by September 1, 1997, the sound notification system recommended shall be installed and be operational no later than January 1, 1998. The sound notification system shall differentiate between house and senate activities and shall notify persons in the State House and at the joint fiscal office when the respective houses have been called to order, are undertaking a roll call vote, or are seeking a quorum to commence or continue business. The sound notification system serving the State House cafeteria shall be enhanced to be audible.

(Total Appropriation -- Section 2 $ 11,530,000)

Sec. 3. APPROPRIATION; PARKING FACILITY

(a) The sum of $50,000 is appropriated to the department of buildings and general services for the preliminary design and engineering of a parking facility adjacent to the Capitol Complex in Montpelier. The design and engineering work shall be carried out in collaboration with the parking facility study committee established by this section.

(b) The City-State Commission shall oversee the planning for the design, construction and financing, maintenance, operation and use of a parking facility adjacent to the Capitol Complex in Montpelier, as recommended by the Interim Report of the City-State Commission, dated January 15, 1997, pursuant to chapter 8 of Title 29. The staff of the legislative council, department of buildings and general services and agency of transportation shall provide administrative support to the commission.

(Total Appropriation -- Section 3 $ 50,000)

Sec. 4. PARKING; CAPITOL COMPLEX AND RELATED AREAS

The sum of $150,000 is appropriated to the department of buildings and general services for improvements to the existing parking lot at the department of employment andtraining building, in Montpelier, for use as long-term parking for visitors to the Capitol Complex and adjacent areas of downtown Montpelier, as recommended by the City-State Commission in its interim report.

(Total Appropriation -- Section 4 $ 150,000)

Sec. 5. CAPITOL COMPLEX AREA SHUTTLE BUS

The agency of transportation and the department of buildings and general services may jointly reinstate shuttle bus service between the department of employment and training building in Montpelier and the Capitol Complex area in a manner approved by the City-State Commission.

Sec. 6. 29 V.S.A. 170 is added to read:

170. PARKING IN STATE PARKING LOTS

(a) The commissioner of buildings and general services is authorized to place in state-owned and controlled parking lots signs and markings directing the parking, stopping, standing and operation of motor vehicles. The driver or owner of any motor vehicle in a state-owned or controlled parking lot shall obey the instructions of any applicable posted sign or marking.

(b) A law enforcement officer or the State House security officer is authorized:

(1) to enforce parking, stopping, standing and operation of motor vehicle signs and markings in state-owned and controlled parking lots;

(2) to issue a Vermont traffic summons and complaint, pursuant to chapter 24 of Title 23, to the driver or owner of a motor vehicle stopped, parked, standing or being operated contrary to the instructions on an applicable posted sign or marking; or

(3) pursuant to section 1102 of Title 23, at the driver’s or the owner’s expense, to move, remove or immobilize, or cause to be moved, removed or immobilized, any motor

vehicle which is stopped, parked, standing or being operated contrary to applicable posted signs and markings.

(c) Any sign or marking shall be presumed to have been placed at the direction of the commissioner unless the contrary is established by competent evidence.

Sec. 7. STATE EMPLOYEE PARKING

The secretary of administration shall prepare by January 15, 1998 a proposed parking permit and fee incentive plan for use at state-owned or controlled parking lots in Montpelier, except for the long-term parking lot at the department of employment and training building, the use of which shall be unrestricted and free of charge. In creating the plan, the secretary shall consult with the Vermont State Employees’ Association, and the secretary may consider, but shall not be bound by, the goals set forth in the parking plan implemented by the University of Vermont. The proposed plan shall include members of the general assembly. The plan shall be submitted to the house and senate committees on institutions.

Sec. 8. INFORMATION TECHNOLOGY; EXECUTIVE BRANCH

(a) Sums are appropriated to the agency of administration for electronic information technology improvements in the following amounts:

(1) Department of education, design and development, new

management information system: $ 150,000.

(2) Department of finance and management, partial funding,

accounting and financial management system: $ 200,000.

(3) Department of taxes:

(A) Partial funding, revenue collection and administration

system, subject to the provisions of subsection (c) of this section: $ 3,700,000.

(B) Digital orthophotographic mapping system: $ 200,000.

(4) Office of defender general, replace and upgrade computer

systems used by employees of the public defender offices and by the

central and post-adjudication offices: $ 175,000.

(5) State’s attorneys offices, computer hardware and

software: $ 120,000.

(6) Distance learning activities, assist with computer equipment

purchases by local schools enabling access to the Internet using private

Internet service providers or GOVnet; provided that none of this

appropriation shall be used in a manner that subsidizes direct competition

with non-tax funded entities. Grants to schools shall be matched in

accordance with the formula set forth in section 3448(a)(7) of Title 16

in effect on May 22, 1996, except school districts which receive 30 percent

aid may receive a full grant without the need for a match: $ 500,000.

(b) The department of finance and management shall by January 15, 1999 submit to the house and senate committees on government operations and appropriations:

(1) Draft legislation recommending changes in statutes, rules and policies to improve the efficiency and reduce the cost of financial management in state government.

(2) Recommend changes in accounting, budgeting and financial practices to centralize and standardize functions within and between agencies and departments, with the goal of establishing standard statewide accounting practices. An independent review of the system, before the contract is awarded, shall include the review of the requirements of this section.

(c) As a condition of the funds appropriated by subdivision (a)(3)(A) of this section for the department of taxes’ revenue collection and administration system:

(1) The secretaries of human services and administration, the commissioners of motor vehicles, employment and training and taxes, the court administrator and the state treasurer shall constitute a committee to plan for the expansion of the tax department revenue system to take over and account for the revenues generated by the executive and judicial branches of state government. The committee may be assisted by a limited service state employee or consultant retained to negotiate on behalf of the committee with software and hardware vendors and consultants designing the tax department revenue system. The funding for this effort shall be from the appropriations contained in this or other capital construction acts for information technology.

(2) By September 15, 1998, the committee shall submit to the joint fiscal committee a recommended timetable and budget for expanding the tax department revenue system to accommodate the revenue needs of state government in an order of priority recommended by this committee.

(A) The committee shall recommend statutory and rule changes to achieve greater efficiencies in the expansion of the system.

(B) The commissioner of taxes shall chair the committee.

(d) As a condition of the funds appropriated in subdivision (a)(6) of this section, the contract entitled "Agreement for Telecommunications Services, State of Vermont Data Network" executed July 22, 1991 between the New England Telephone and Telegraph Company, a.k.a. NYNEX, and the state for the provision of services for the operation of GOVnet shall be strictly followed, including provisions for the release of the state each year from its obligation to obtain a portion of the services covered by the contract from NYNEX. Any service now being provided by NYNEX which the state is no longer obliged to obtain from NYNEX shall before any of the appropriations of this section is spent, be put out to bid pursuant to the public bidding process provided by Secretary of Administration Bulletin No. 3.5. The secretary of administration shall upon soliciting such bids so notify the chairs of the house and senate committees on appropriations and institutions, and shall report the results of the bid solicitation to the general assembly by January 15, 1998.

(Total Appropriation -- Section 8 $5,045,000)

Sec. 9. HUMAN SERVICES

The sum of $1,112,500 is appropriated to the department of buildings and general services for the agency of human services for:

(a) Correctional facilities:

(1) The state match of federal funds available to assist with:

(A) Newport, Northern State Correctional Facility.

Construction of a 116-bed expansion, including a new living

unit, a Vermont Corrections Industry building for the increased

population, a maintenance shop for the department of buildings

and general services, and associated site work; plus

improvements to the existing facility to provide a total

of six holding cells, which shall be available to accommodate

the needs of municipal, county and state law enforcement

agencies in the area: $ 570,000.

(B) New correctional facility; for siting a 350-bed

medium security correctional facility and related improvements.

The administration shall propose a site to the house and senate

committees on institutions for approval, which may include the

town of Windsor if the facility is approved by a majority of town

voters on or before the town’s annual meeting in 1998: $ 100,000.

(C) Waterbury, Vermont state hospital. Design and

engineering for security and other improvements to space at the

state hospital to use for housing women inmates: $ 2,500.

(2) Newport, Northern State Correctional Facility,

handicapped accessibility improvements: $ 25,000.

(3) Various facilities, security maintenance: $ 50,000.

(4) Various facilities, lavatory and shower improvements: $ 200,000.

(5) Various facilities, fire alarm system improvements: $ 100,000.

(b) Essex, Woodside Juvenile Center, gymnasium flooring: $ 35,000.

(c) Waterbury, State Hospital, replace flooring: $ 30,000.

(Total Appropriation -- Section 9 $ 1,112,500)

Sec. 10. CORRECTIONS OFFICE SPACE IN CHITTENDEN COUNTY;

TEMPORARY LOCATION

(a) The department of buildings and general services shall make available space within Chittenden County with special attention paid to space within the Costello Courthouse, pursuant to section 195 of Title 29, for employees of the Department of Corrections displaced during the transition to their new location in the McAuliffe’s building on Cherry Street.

(b) The commissioner of buildings and general services is authorized to reconstruct and remodel existing space using funds appropriated to the department of buildings and general services for other purposes in this act.

(c) Department of corrections employees currently assigned office space at the Costello Courthouse in Burlington shall remain at that location.

Sec. 11. JUDICIARY

(a) The following sums are appropriated to the department of buildings and general services for:

(1) Grand Isle County Courthouse in North Hero, for

parking lot resurfacing: $ 9,000.

(2) Caledonia County Courthouse in St. Johnsbury,

to be applied toward the cost of final design, engineering and

construction of a courthouse addition, subject to the provisions

of subsection (b) of this section: $ 200,000.

(b) Caledonia County Courthouse addition.

(1) The basement of the courthouse addition shall remain unfinished but available for future use by the Community College of Vermont, for which purpose finishing and fitting-up the basement would require an estimated additional appropriation of $500,000.

(2) It is the intent of the general assembly in making the appropriation of this section for the courthouse addition to expedite the construction schedule of the project.

(3) The department of buildings and general services shall propose reductions in the size and cost of the proposed $6,500,000 courthouse and addition. The consolidated functions of the superior, district, probate and family courts, and the Vermont traffic bureau shall be included in the project. The building shall include at least one of the state offices identified in subdivision (4) of this subsection. The number of hearing rooms in the building shall be based on the number of judicial officers likely to use the facility at the same time, based on historical usage and projected growth based on actual growth. Rooms shall be designed for multiple uses by the courts, traffic bureau, state agency meetings, and area not-for-profit and civic organizations nights and weekends. No more than two rooms shall be designed to accommodate more than 50 members of the public and those rooms shall be available for use for jury cases. The department of buildings and general services shall consult with interested persons from Caledonia County in designingand constructing an efficient and economic facility.

(4) The department of buildings and general services shall consider for inclusion in the courthouse and courthouse addition, the office of the Caledonia County state’s attorney, the local office of the department of probation and parole, the local office of the department of social and rehabilitation services, the Caledonia County sheriff’s department, a secure holding area for persons in custody for use by law enforcement agencies using the courthouse, and the public defender’s office if the office is staffed by employees of the state, notwithstanding any statute, policy or rule to the contrary.

(Total Appropriation -- Section 11 $ 209,000)

Sec. 12. COMMERCE AND COMMUNITY DEVELOPMENT

(a) The sum of $180,000 is appropriated to the department of buildings and general services for the agency of commerce and community development for:

(1) Plymouth Notch, Wilder Barn renovations: $ 100,000.

(2) Handicapped accessibility improvements,

Plymouth Notch General Store, Old Constitution House,

in Windsor, and Chester Alan Arthur Birthplace,

in North Fairfield: $ 20,000.

(3) Underwater preserves, develop 10-year management

partnership with Champlain Maritime Museum; this

appropriation shall not be made available for use until

each dollar of the appropriation has been matched with

three dollars contributed from nonstate sources: $ 10,000.

(4) Establishing a revolving loan fund to be administered

by the division for historic preservation for use by organizations

with a direct interest in state-owned historic sites. Loans from

the fund to such organizations shall be used for and to take

advantage of unanticipated opportunities to acquire furnishings,

artwork, letters, papers or other collections of historic objects

that directly relate to the principal people, places and events

interpreted at a state-owned historic site. Items acquired

shall be donated to the appropriate state-owned historic site.

A loan shall be repaid from contributions raised from nonstate

sources within a time period approved by the division for

historic preservation when the loan is made, but which shall

not exceed five years. Interest shall be paid on a

loan from the revolving fund at a rate set for each

individual loan by the secretary of commerce and

community development: $ 50,000.

(b) The following sum is appropriated to the

agency of commerce and community development for

use by the division of historic preservation for

a study of the feasibility of rehabilitating the historic

school building, or another historic building, in Swanton

Village for a Native American cultural heritage museum,

with each dollar used from this appropriation to be matched

with two dollars contributed from nonstate sources.

The division for historic preservation shall report study

findings and recommendations to the general

assembly by January 15, 1998: $ 5,000.

(c) Sums are appropriated to the agency of commerce and community development for state grants, to be made available on a one-for-one matching basis with funds raised from nonstate sources, in the following amounts:

(1) Historic Preservation Grant Program, for

municipalities and nonprofit tax exempt organizations,

for restoring buildings and structures: $ 150,000.

(2) Historic Agricultural Buildings Grant Program,

for owners of historic agricultural buildings, for restoration

of such structures. If a grantee sells the property: (i) within

one year of the grant award, 100 percent of the grant shall be

repaid to the state; or (ii) between one and five years after the

grant is awarded, the amount to be repaid shall be reduced by

20 percent per year: $ 75,000.

(d) The division of historic preservation shall erect the following 13 roadside historic site markers as submitted to the senate committee on institutions on April 9, 1997, pursuant to section 2472a of Title 3: Martin H. Freeman, Rutland; Ray W. Collins, Colchester; Centennial Field, University of Vermont, Burlington; George Washington Henderson, Underhill; Estey Organ Company, Brattleboro; Kent’s Corner, Calais; Theron Boyd House, Quechee; Grace Goodhue Coolidge House, Burlington; Tunbridge World’s Fair, Tunbridge; Jessie LaFountain Bigwood, South Royalton; Clarina Howard Nichols, Townshend; Isaac Tyson, Strafford; and First Slate Quarry in Western Vermont, Fair Haven. Notwithstanding any other provision of law to the contrary and as a condition of the appropriation of this section, the division for historic preservation and the agency of transportation shall jointly no later than September 1, 1997 install at no charge two six-inch high by appropriate length aluminum signs to include a brown background with white vinyl letters of 1 3/4-inch size and a directional arrow with the Morgan Horse Association logo displaying "Justin Morgan Horse Burial Site", on Vermont Route 110 at the intersection of Bicknell Hill Road, TH #6, in the town of Tunbridge. The secretaries of commerce and community development and of transportation shall jointly notify the state treasurer when this directive has been accomplished.

(e) The division of historic preservation is authorized to accept the transfer of the property of Nancy and Reginald Bishop, consisting of 1.5 acres more or less, located in the Town of Orwell, at no cost, from the Nature Conservancy for the Mt. Independence historic site.

(Total Appropriation -- Section 12 $ 410,000)

Sec. 13. VERMONT HISTORICAL SOCIETY

The sum of $50,000 is appropriated to the Vermont Historical Society, for grants to municipalities and nonprofit tax exempt organizations, to be made available on a one-for-one matching basis with funds raised from nonstate sources, for capital improvements to cultural facilities, including performing arts facilities, museums, historical society buildings and art galleries. The grants shall be geographically distributed. The Vermont Historical Society as a condition of this appropriation shall give priority to grant applications from entities which have not during the past five years received a specific appropriation in a capital construction act in a total amount of $50,000 or more.

(Total Appropriation -- Section 13 $ 50,000)

Sec. 14. EDUCATION

Sums are appropriated to the department of education for the following purposes in the following amounts:

(a) State assistance to communities and school districts

with school construction in accordance with the provisions

of Title 16: $ 7,348,052.

(b) Regional technical education centers:

(1) Springfield Vocational-Technical Center, planning: $ 100,000.

(2) Addison Career and Development Center;

Burlington Technical Center; Lake Region Union High

School; Lamoille Area Vocational-Technical Center;

Missisquoi Valley Union High School; and North Country

Career Center. The commissioner of education and the

commissioner of buildings and general services shall

collaborate in allocating this appropriation among

the facilities identified, based on agreed upon priorities: $ 450,000.

(c) State grants for the purchase of equipment used in

the technical educational programs of the regional technical

education centers and comprehensive high schools pursuant

to provisions of Title 16. The five technical centers and two

comprehensive high schools identified in the 1997

"Report of the Joint Legislative Committee on Technical Center

Construction" as being most in need of repairs and updated

equipment shall, upon approval by the commissioner of an

application, receive awards of up to $12,000 each.

The remainder of the technical centers and comprehensive

high schools shall, upon approval by the commissioner of

an application, receive awards of up to $9,000 each: $ 210,000.

(d) The sum of up to $78,030 from the appropriation of subsection (a) of this section shall be awarded as a grant to the Shaftsbury school district, notwithstanding provisions of section 3448 of Title 16 concerning filing deadlines, as the 30 percent state share of the cost of renovating seven classrooms to provide adequate space for programs and services required by state and federal law and regulation, including the Americans with Disabilities Act.

(e) The sum of up to $12,167 from the appropriation of subsection (a) of this section shall be awarded as a grant to the North Country Union High School, notwithstanding provisions of section 3448 of Title 16 concerning filing deadlines, as the 30 percent state share of the cost of installing an elevator.

(Total Appropriation -- Section 14 $ 8,108,052)

Sec. 15. AUSTINE SCHOOL

The sum of $40,000 is appropriated to the department of buildings and general services for use by the Austine School for the Deaf and Hard of Hearing, in Brattleboro, for building improvements.

(Total Appropriation -- Section 15 $ 40,000)

Sec. 16. UNIVERSITY OF VERMONT

The sum of $1,000,000 is appropriated to the department of buildings and general services for the University of Vermont, for improvements to the central heating plant for the Burlington campus.

(Total Appropriation -- Section 16 $ 1,000,000)

Sec. 17. VERMONT STATE COLLEGES

The sum of $2,800,000 is appropriated to the department of buildings and generalservices for the Vermont State Colleges for academic building expansion at Castleton State College, subject to the following conditions being met during the design, engineering and construction of the project:

(1) An independent consultant may be retained to advise regarding development and implementation of a structured cabling plan which assures that building wiring and design will accommodate present and future needs.

(2) One or more knowledgeable individuals from the private cable transmission industry may be invited to assist with the structured cabling activity to ensure that:

(A) Current and prospective technology for one-way television broadcasting on cable systems and associated forms of electronic communication are fully contemplated and accommodated by the structured cabling plan.

(B) The structured cabling plan will accommodate current or prospective opportunities for distance learning activities, available from the University of Vermont and other educational institutions both inside and outside the state, that involve the use of satellite and other state of the art transmissions.

(3) Portions of the building shall be easily and securely accessible to citizens from the Rutland area for educational purposes or community functions during evenings and weekends.

(Total Appropriation -- Section 17 $ 2,800,000)

Sec. 18. NATURAL RESOURCES

(a) The sum of $585,000 is appropriated to the agency of natural resources for design and construction for:

(1) Dam maintenance:

(A) Waterbury Dam in Waterbury, emergency

generator: $ 40,000.

(B) Waterbury Dam in Waterbury, a one-time geotechnical

safety evaluation; as a condition of this appropriation any additional funds

needed for the evaluation shall be obtained from sources other than an

appropriation in this act: $ 50,000.

(2) The department of fish and wildlife for:

(A) Grand Isle, Edgar Weed fish hatchery, zebra mussel

control: $ 230,000.

(B) Handicapped accessibility improvements, at

fish hatcheries in Newark (Bald Hill), Salisbury, and Grand Isle

(Edgar Weed), and at conservation camps in Woodbury (Buck Lake)

and Castleton (Edward F. Kehoe): $ 100,000.

(C) Castleton, Edward F. Kehoe Conservation Camp, director’s

cabin renovations: $ 10,000.

(D) Woodbury, Buck Lake Conservation Camp,

water system improvements: $ 40,000.

(3) The department of forests, parks and recreation for:

(A) Plymouth, Plymouth State Park, develop

playground: $ 25,000.

(B) Charlotte, Mt. Philo State Park, parking lot, with in-kind

contribution by the Vermont National Guard. This appropriation shall not

be spent before April 1, 1998, and only upon the approval of

the selectboard of the town of Charlotte following consideration by the

Charlotte town planning commission of alternatives to the proposed

parking area within the state park which alleviate existing parking and

safety considerations at the base of the mountain: $ 40,000.

(C) Various state parks, handicapped accessibility

improvements: $ 50,000.

(b) Sums are appropriated to the agency of natural resources for state assistance to municipalities in the following amounts:

(1) Water supply, state assistance as authorized by chapter 55

of Title 10 and chapter 120 of Title 24 for potable water supply

facilities construction, consistent with the statement of legislative

intent of subsection (e) of this section:

(A) For use to match federal funds available under the

federal Safe Drinking Water Act set-aside for the purposes of providing:

(i) technical and financial assistance to small water systems;

(ii) small grants to water systems to delineate and protect

water sources; and

(iii) administrative funds for the startup of a public drinking

water state revolving fund: $ 140,000.

(B) For use to match federal funds available under the

federal Safe Drinking Water Act and for the purpose of making

loans to municipalities. Funds from this appropriation shall be available

for use by privately-owned public water systems as provided by chapter

120 of Title 24: $ 658,760.

(2) Pollution control:

(A) State assistance as authorized by chapter 55 of

Title 10 and chapter 120 of Title 24, for water pollution control

and combined sewer overflow facility construction: $ 5,876,310.

(B) Middlebury, municipal wastewater treatment

facility: $ 1,707,365.

(c) The following sum is appropriated to the agency of

natural resources for use by the Green Mountain Club, Inc.

for procurement, in fee simple or by permanent easement,

conservation easement or protective easement, of strategic

properties along the 265 miles of the Long Trail, subject to the

conditions of subsection (d) of this section: $ 300,000.

(d) The Green Mountain Club, Inc. shall whenever appropriate apply for funding from the Vermont housing and conservation trust fund, and shall support the efforts of individual landowners to seek funding from the U.S. Forest Service Legacy Program, for each proposed purchase of development rights and real estate in fee simple to match private funds and money appropriated by subsection (c) of this section. Negotiations andagreements shall be made on a willing seller-willing buyer basis. None of the appropriation of subsection (c) of this section shall be used to support the acquisition of land by eminent domain. Any easements acquired shall be recorded in a deed from the landowner to the state of Vermont and may not be changed without agreement by both parties.

(e) It is the intent of the general assembly that:

(1) State grant awards shall be made to assist with construction of municipal water supply projects for the City of Montpelier and the Town of North Hero, and for any other municipal project for which voters authorized municipal borrowing prior to April 5, 1997.

(2) State loan awards shall be made to assist with any municipal water supply project for which municipal borrowing is authorized on or after April 5, 1997; such loans are intended to be issued from and administered through the drinking water state revolving fund established by section 4753(a)(3) of Title 24.

(3) All available funds shall be used to capitalize the drinking water state revolving fund, including federal Safe Drinking Water Act funds, Community Development Bloc Grant funds, municipal funds, state capital appropriations, and monies obtained from any other lawful source.

(Total Appropriation -- Section 18 $ 9,267,435)

Sec. 19. MILITARY

(a) The following sum is appropriated to the military

department for use at the Rutland Armory for boiler

replacement: $ 45,000.

(b) The following sum is appropriated to the department

of buildings and general services to assist with planning and

construction of a nonsectarian chapel at the Vermont

Veterans’ Cemetery in Randolph, for which private

funds have also been donated. This appropriation shall

be used to the extent possible to obtain matching federal

funds for the project, which if available the military

department is hereby authorized to accept: $ 25,000.

(c) The new nonsectarian chapel at the Vermont Veterans’ Cemetery in Randolph may be named in honor of 1st Lt. George L. Fox, Chaplain, U.S.A. The exact wording of the chapel name, which may include the name of Chaplain Fox, shall be decided by the Vermont Veterans’ Memorial Cemetery Advisory Board. The board shall report its decision to the house and senate committees on institutions by January 15, 1998.

(Total Appropriation -- Section 19 $ 70,000)

Sec. 20. VERMONT VETERANS' HOME

The sum of $56,000 is appropriated to the department of buildings and general services for the Vermont Veterans' Home in Bennington for:

(a) North Wing dining and lounge addition: $ 26,000.

(b) East Wing lounge addition: $ 30,000.

(Total Appropriation -- Section 20 $ 56,000)

Sec. 21. VERMONT HOUSING AND CONSERVATION TRUST

(a) The sum of $2,700,000 is appropriated to the Vermont housing and conservation trust fund for the purposes established in chapter 15 of Title 10.

(b) The Vermont housing and conservation board shall on a statewide basis require its grantees participating in any home purchase and ownership program, including the homeland program, to provide full, complete and accurate information to prospective purchasers and owners of property to be purchased of rights, responsibilities and liabilities likely to result from the purchase, sale and ownership of property acquired through any funding assistance provided by the board. The board shall also develop in connection with any statewide home purchase program standardized protocols and standardized documents. The board shall include in its annual report to the general assembly a discussion on the implementation of this subsection.

(Total Appropriation -- Section 21 $ 2,700,000)

Sec. 22. AGRICULTURE

The sum of $500,000 is appropriated to the department of agriculture, food and markets for grants under provisions of subchapter 2 of chapter 215 of Title 6, to abateagricultural non-point source waste discharges into the waters of the state of Vermont.

(Total Appropriation -- Section 22 $ 500,000)

Sec. 23. MUNICIPAL AND NONPROFIT ORGANIZATIONS

The following sums are appropriated to the department of buildings and general services for projects undertaken by municipalities or nonprofit organizations:

(a) Arlington; Martha Canfield Memorial Free Library

nonprofit organization, assist with fit-up of the library

building, on the condition that the nonprofit organization

shall, for a 20-year period in accordance with a written

agreement with the department of buildings and general

services and the town of Arlington selectboard, make

available for use by the state and by area nonprofit and

civic organizations conference rooms in the facility

for meetings at no charge except actual cleaning and

security costs incurred: $ 10,000.

(b) Barre; Barre Granite and Ethnic Heritage Museum

steering committee created by Sec. 6(a)(7) of Act No. 233

of the Acts of 1993 (Adjourned Session) and as reauthorized

by Sec. 21e of Act No. 62 of the Acts of 1995, for site

evaluations, engineering studies, acquisition of property

for the museum and necessary construction activity, which

activities shall build upon and make full use of the conceptual

design plan previously prepared for the committee: $ 75,000.

(c) Colchester; Vermont Veterans’ Militia Museum

and Library nonprofit organization, to assist with

improvements to the museum and library, at Camp Johnson: $ 25,000.

(d) Enosburg Falls; to assist the town of Enosburg with

improvements to the Opera House at Enosburg Falls in a

manner approved by the division of historic preservation

and the department of buildings and general services.

This appropriation shall not be made available until Friends

of the Opera House at Enosburg Falls, Inc. has raised and

has on hand for the project $100,000 in funds raised after

March 1, 1997 from nonstate sources: $ 15,000.

(e) Winooski; to assist Heritage Winooski with an exhibit

on the French culture heritage of Winooski, located in the

Champlain Mill: $ 12,000.

(f) Each sum appropriated by this subsection shall be made available when evidence is presented to the commissioner that three dollars has been raised from nonstate sources for each dollar appropriated, and has been placed in escrow use for the purpose authorized herein:

(1) Derby; Indoor Recreation of Orleans County,

Inc., a nonprofit organization, to assist with construction

of an ice arena: $ 10,000.

(2) Northfield; Northfield Historical Society, to assist

with renovation and expansion of the Brown Public Library

building for joint occupancy by the historical society, on the

condition that the two entities shall, for a 20-year period in

accordance with a written agreement with the department

of buildings and general services and the town of Northfield

selectboard, make available for use by the state and by area

nonprofit and civic organizations conference rooms in the

facility for meetings at no charge except actual cleaning

and security costs incurred: $ 25,000.

(3) Richford; town of Richford, to assist with construction

of a multi-purpose community center in the village of Richford,

to encourage investment in and rehabilitation and restoration of

the municipal downtown area: $ 150,000.

(4) Waterbury; the Ice Center, Inc., to assist with

construction of an enclosed refrigerated ice rink: $ 10,000.

(g) Each sum appropriated by this subsection shall be made available when evidence is presented to the commissioner that one dollar has been raised from nonstate sources for each dollar appropriated, and has been placed in escrow use for the purpose authorized herein:

(1) Bloomfield; town of Bloomfield, to assist with

restoration of the Historic Bloomfield Town Hall: $ 15,000.

(2) Guildhall; town of Guildhall, to assist with

preservation of the Guildhall Community Church in the

Guildhall Village Historic District: $ 5,000.

(3) St. Albans; City of St. Albans, to assist with

renovation of the Barlow Street Community Center: $ 75,000.

(4) Vergennes; Friends of the Vergennes Opera House, Inc.

(FVOH) nonprofit organization, to assist with renovation of the

Vergennes Opera House; on the condition that the match shall be

raised after October 12, 1996, and the condition that the FVOH shall:

(A) Undertake an outreach program in conjunction with the

Flynn Theatre for the Performing Arts, Ltd., to ensure future access to

and participation in a performing arts education program by elementary

and secondary school students in the Vergennes area.

(B) Approach the Vermont U.S. Congressional Delegation to

seek federal funds and assistance with other nonstate funds and report

on this effort by January 15, 1998 to the house and senate committees

on institutions.

(C) Seek assistance from Middlebury College with

programming and with the physical design, lighting, acoustics,

seating and other infrastructure needs of the Vergennes Opera House: $ 50,000.

(5) Weston; Old Mill Museum nonprofit organization, historic

mill building, to assist with foundation repairs and other structural

improvements: $ 50,000.

(Total Appropriation -- Section 23 $ 527,000)

Sec. 24. MONTPELIER; RIVERFRONT REDEVELOPMENT

As a condition of the sale of the former Montpelier and Wells River Railroad freight house in the City of Montpelier, as provided for in H.530, the following conditions shall be contained in the purchase and sales agreement pertaining to sale of the building and these conditions shall be referenced in the instrument of conveyance:

(1)(A) The building may be sold. The land beneath the building shall not be sold.

(B) The land lease shall contain a mechanism for periodic, five-year reviews and adjustments as to the amount of the lease payment.

(C) The prospective owner of the building shall be responsible, at the owner’s expense, for locating and making available in Montpelier to the department of buildings and general services an equal amount of cold storage space for a period of three years.

(D) The purchaser shall make a minimum investment in the building in an amount approved by the WERC.

(2) The purchaser shall, in addition to the purchase price paid to the Central Vermont Economic Development Corporation, pay to the City of Montpelier at the time of the sale of the building the sum of $37,500 to be applied by the city to defray the cost of the Winooski East Riverfront Redevelopment Project.

(3) In the event the purchaser is a not-for-profit organization, it shall agree: to make an annual payment in lieu of taxes to the City of Montpelier in an amount equal to what would be paid if the building was appraised and on the city grand list; and that the city is authorized to assess and collect this payment using the authority available to assess and collect property taxes.

(4) Before any improvements to the exterior of the building are made or the building demolished, the proposed action shall be approved in advance in writing by the Agency of Transportation. The viability of the railroad shall not directly or indirectly be impaired by the owner of the building.

(5) The state of Vermont shall have the right of first refusal to repurchase the building in the event of a proposed sale, foreclosure, tax sale or other change in ownership of the building.

(6) There shall be an open process followed by CVEDC and the City of Montpelier in selecting the purchaser of the building.

Sec. 25. VERMONT EMERGENCY ALERT SYSTEM

(a) Appropriation. The sum of $50,000 is appropriated to the department of public safety to assist with equipment purchases necessary to establish a digital Emergency Alert System (EAS) for Vermont, as a replacement of the existing Emergency Broadcast System. Notwithstanding any provision of law to the contrary, the commissioner, as a condition of this appropriation, shall seek and may accept without further legislative action, additional funding to establish a Vermont EAS from nonstate sources, including the U.S. Federal Emergency Management Agency.

(b) Equipment relocation. The commissioners of the departments of public safety (DPS) and of buildings and general services (BGS) shall cooperate in relocating existing equipment, including the emergency power generator and communications equipment, used by the Vermont Emergency Operations Center at the Waterbury state complex to a site or location within the state that is above the 20-year flood plain. The commissioner of BGS may use for this purpose any unspent funds of the appropriation of subsection (a) of this section and of other appropriations of this act to the department of BGS.

(c) Study and Report.

(1) The commissioners of DPS and BGS shall study:

(A) The feasibility and cost of establishing an alternate:

(i) primary Emergency Operations Center (EOC), which may be located at the future site of the Chittenden County state police office; or

(ii) EOC point of entry in the State House or some other Montpelier location, including the National Life Insurance Company.

(B) The need for alternate EOC capability located in, or serving, one or more of the six Vermont operational areas, which are: Champlain Valley, Central Vermont,Northern Vermont, Southern Vermont, Windham County, and Windham County Special Zone.

(C) The feasibility of using cellular telephone or other wireless technology to establish portions of the Vermont EAS.

(2) The commissioners of DPS and BGS in conducting this study shall confer with a steering committee, which shall consist of the chairs of the house and senate committees on institutions, the Vermont adjutant general, the directors of the regional offices of the U.S. Federal Communications Commission and the U.S. Federal Emergency Management Agency, the chair of the Vermont State Emergency Communications Committee, and the President of the Vermont Association of Broadcasters, or their designees.

(3) The commissioners shall by January 15, 1998 report study findings and recommendations, which shall include the use of cellular telephone technology and cost estimates and finance proposals, to the house and senate committees on institutions.

(Total Appropriation -- Section 25 $ 50,000)

* * * Financing This Act * * *

Sec. 26. REALLOCATION OF FUNDS

(a) The sum of $4,019 appropriated in Sec. 7(b) of Act No. 62 of the Acts of 1995 (turnoffs from Route 17, Town of Addison) is reallocated to the department of buildings and general services to defray expenditures authorized by the appropriations of this act.

(b) The following sums are reallocated to the agency of natural resources to defray expenditures authorized by the appropriations of Sec. 18 (natural resources) of this act:

(1) $200,000 appropriated in Sec. 11(d)(3) (solid waste) of Act No. 93 of the Acts of 1991.

(2) $300,000 appropriated in Sec. 11(e)(3) (solid waste) of Act No. 256 of the Acts of 1991 (Adjourned Session).

(3) $63,354 appropriated in Sec. 11(d)(3) (solid waste) of Act No. 59 of the Acts of 1993.

(4) $42,734 appropriated in Sec. 19(d)(2)(A) (hazardous materials) of Act No. 233 of the Acts of 1993 (Adjourned Session).

(5) $148,218 appropriated in Sec. 13(b)(4)(C) (composting) of Act No. 62 of the Acts of 1995.

(c) The following sums are reallocated to the military department to defray expenditures authorized by the appropriations of Sec. 19 (military) of this act:

(1) $7 appropriated in Sec. 12 (armory projects) of Act No. 93 of the Acts of 1991.

(2) $947 appropriated in Sec. 12 (armory projects) of Act No. 59 of the Acts of 1993.

(3) $9,208 appropriated in Sec. 20 (armory projects) of Act No. 233 of the Acts of 1993 (Adjourned Session).

(4) $6,500 appropriated in Sec. 14 (various military projects) of Act No. 62 of the Acts of 1995.

(Total Reallocation -- Section 26 $ 774,987)

Sec. 27. GENERAL OBLIGATION BONDS

(a) The state treasurer is authorized to issue general obligation general fund bonds in the amount of $42,900,000 for the purpose of funding the appropriations of this act. The state treasurer, with the approval of the governor, shall determine the appropriate form and maturity of the bonds consistent with the underlying nature of the appropriation to be funded.

(b) The state treasurer is authorized to allocate the estimated cost of bond issuance, or issuances, to the entities to which funds are appropriated by this act and for which bonding is required as the source of funds. Should estimated receipts be insufficient, the state treasurer shall allocate additional costs pursuant to section 954 of Title 32. Any remaining receipts shall not be expended but carried forward to be available for future capital construction acts.

(Total Bonding -- Section 27 $ 42,900,000)

* * * Managing This Act * * *

Sec. 28. MANAGEMENT OF APPROPRIATIONS IN THIS ACT

All appropriations made in this act to the department of buildings and general services shall be managed and expended under chapter 5 of Title 29. However, the commissionerof buildings and general services may, with the approval of the secretary of administration, direct the commissioner of finance and management to issue a warrant to pay the amount of any such appropriation designated for use by an entity not affiliated with an executive branch of state government directly to such an entity.

Sec. 29. TRANSFER OF FUNDS APPROPRIATED IN THIS ACT

(a) Administration. The secretary of administration may transfer any unexpended project balances between projects authorized by Sec. 8 of this act.

(b) Military. The adjutant general, with the approval of the secretary of administration, may transfer any unexpended project balances between projects authorized by Sec. 19 of this act.

(c) Natural resources. The secretary of natural resources, with the approval of the secretary of administration, may transfer any unexpended project balances between projects authorized by Sec. 18(a) (natural resources, state facilities) of this act.

(d) Buildings and general services.

(1) The commissioner of buildings and general services may:

(A) Transfer monies between individual projects which are authorized under the same individual appropriations of this act to the department of buildings and general services.

(B) Transfer any unexpended project balances between projects which are authorized by the appropriations of different sections of this act to the department of buildings and general services, with the approval of the secretary of administration, when the unexpended project balance does not exceed $25,000, or with the additional approval of the emergency board when such a balance exceeds $25,000.

(2) The commissioner of buildings and general services may use monies from the contingency fund appropriation of Sec. 2(d)(2) of this act to cover shortfalls for any project authorized in any capital construction act. Any transfer from the contingency fund in excess of $50,000 shall be with the approval of the secretary of administration.

(3) The commissioner may postpone any of the authorized projects if financial or economic conditions are such that the best interests of the state would be served thereby.

(e) The secretary of administration is authorized to transfer to the department of buildings and general services for use only for major maintenance within the Capitol Complex in Montpelier, any unexpended balances of funds appropriated in this or any previous capital construction act for completed executive or judiciary branch projects, excluding any appropriations for state grant in aid programs. The secretary shall by January 15, 1998 report to the house and senate committees on institutions on all transfers and expenditures made pursuant to this subsection.

Sec. 30. SPENDING AND BONDING AUTHORIZATION; VERMONT STATE

COLLEGES

(a) In conformity with section 2171(e) of Title 16, the general assembly approves the expenditure by the Vermont State Colleges from its revenues, other than state appropriations, and from its revenues established for the purpose of capital improvements for housing, dining, and general purpose facilities to an aggregate of $1,010,000 for necessary capital improvements. Capital improvements in excess of $25,000 shall be under the supervision of the commissioner of buildings and general services.

(b) The Vermont State Colleges are authorized to undertake dormitory capital improvement projects estimated at $7,400,000, to be financed through dormitory revenue bonds backed by the full faith and credit of the Vermont State Colleges. Proposed projects would include: Johnson State College Governors and Senators dormitories, brick, window and roofing replacement and heating conversion from electric to hot water; Castleton State College, Ellis dormitory, electrical, heating and window replacement; and Vermont Technical College, Morey and Keenan dormitories, heating conversion from electric to hot water.

Sec. 31. GRANT ACCEPTANCE

(a) Notwithstanding section 5 of Title 32 (acceptance of grants):

(1) The commissioner of corrections, with the approval of the secretary of human services, may accept federal grants available under federal crime legislation.

(2) The commissioner of environmental conservation, with the approval of the secretary of natural resources and the secretary of administration, is authorized to acceptfederal grants available under the federal Clean Water Act and the federal Safe Drinking Water Act in accordance with chapter 120 of Title 24, provided all notifications are made as required by section 4760(a) of Title 24.

(b) The secretary of natural resources is authorized to accept federal capitalization grant funds pursuant to section 1452(e) of the federal Safe Drinking Water Act to the extent such federal funds can be matched with engineering planning advance returns previously awarded for water supply projects under section 1593 of Title 10 or any other lawful funds. Notwithstanding other provisions of law, the secretary of natural resources is authorized to use future water supply planning advance returns and other lawful funds for the purpose of matching federal capitalization grant awards for the Vermont environmental protection agency (EPA) drinking water state revolving fund as of the effective date of this act. To the extent practicable and consistent with other applicable law the secretary of natural resources shall utilize planning advance returns to first match federal loan monies for use by that municipality repaying the planning advance fund.

(c) Each receipt of a grant or gift as authorized by this section shall be reported to the chairs of the house and senate committees on institutions, and members of the joint fiscal committee.

Sec. 32. EXPENDITURE OF FEDERAL FUNDS

Pursuant to Sec. 29(b) of Act No. 62 of the Acts of 1995, as amended by Sec. 36 of Act No. 185 of the Acts of 1995 (Adjourned Session), the department of buildings and general services is authorized to expend the sum of $350,000 in receipts from the U.S. Marshal Service provided by intergovernmental cooperation agreement number 10-82-95 between the U.S. Marshal Service and the Vermont department of corrections, to defray expenditures at the Woodstock correctional facility for life safety and health and sanitation improvements.

Sec. 33. COMMITTEE MEMBER COMPENSATION

For attendance at a meeting of a limited purpose committee created by this act, each committee member who is not an employee of the state or of an instrumentality of the state, shall be entitled to per diem compensation and expense reimbursement as follows:

(1) Members of the general assembly shall receive compensation pursuant to section 406 of Title 2, except that no compensation shall be paid for meetings which take place while the general assembly is in session.

(2) Other individuals shall receive compensation pursuant to section 1010 of Title 32.

* * * Real Property and Other Financial Transactions * * *

Sec. 34. TRANSFER OF STATE-OWNED PROPERTY; PLYMOUTH

The commissioner of buildings and general services is authorized, with the approval of the secretary of administration, to transfer for $1.00 a 3.98 acre parcel of state-owned land adjoining the Plymouth Notch Cemetery to the town of Plymouth, for the purpose of joining the parcel with the cemetery. The parcel is further identified by a survey by Michael Engineering Company, P.C. of Ludlow, dated January 22, 1997, entitled "Plymouth Notch Cemetery, including a Proposed Land Acquisition [sic] From the State of Vermont."

Sec. 35. SALE OF STATE-OWNED PROPERTY; GEORGIA

The commissioner of buildings and general services is authorized, with the approval of the secretary of administration, to sell to the Town of Georgia for $1.00 the state’s interest in the Northwest Regional Library building and property, under conditions to be negotiated by the commissioner consistent with the testimony provided to the general assembly.

Sec. 36. PURCHASE OF PROPERTY; NEWPORT

The commissioner of buildings and general services is authorized, with the approval of the secretary of administration, to purchase a portion of a parcel in Newport owned by the Chittenden Bank and located adjacent to Coventry Street at the southeast corner of the juncture of Coventry Street and Main Street. The use of the property to be purchased shall be to provide an additional traffic lane to Coventry Street as required by the approved site plan of the Emory A. Hebard State Office Building project. Once purchased, the property shall be added to the Emory A. Hebard State Office Building project site, and the boundaries of the project shall be adjusted accordingly on survey andproperty maps referenced by Sec. 2(c)(3) of Act No. 233 of the Acts of 1993 (Adjourned Session).

Sec. 37. CONDOMINIUM AND LEASE-PURCHASE AGREEMENTS

(a) Newport. The commissioner of buildings and general services is authorized, with the approval of the secretary of administration, to enter into condominium agreements for the sale or lease of space in the Emory A. Hebard State Office Building, for the purpose of offsetting the loss of property tax base available to the City of Newport due to state acquisition of property for the office building site. Any proceeds from the sale of such space shall be used to fund the construction of the condominium space. Any proceeds from the lease of such space shall be deposited in the property management fund of the department of buildings and general services.

(b) Rutland. Notwithstanding Sec. 28 of Act No. 256 of the Acts of 1992, the commissioner of buildings and general services may, with the approval of the secretary of administration, enter into an agreement to amend the existing lease-purchase agreement regarding state office space in the City of Rutland. Such amendment may allow for the refinancing of the project by the current lessor-seller which may include condominiumization of the building, and creation of a holding corporation to hold title to the state’s portion of the building until such time as the state is able to directly purchase the property under the terms of the amended agreement.

Sec. 38. REAL PROPERTY TRANSACTIONS; DEPARTMENT OF FORESTS,

PARKS AND RECREATION

(a) Pursuant to section 2606(b) of Title 10, the general assembly authorizes the commissioner of forests, parks and recreation:

(1) To convey, as required by the Vermont housing and conservation board grant conditions for the Belvidere Pond acquisition (VHCB Grant No. 94-099), a conservation easement on the 1,128-acre Belvidere Pond property to the Vermont housing and conservation board and the Vermont Land Trust.

(2) To sell an easement to Mt. Mansfield Company, Inc., also known as Stowe Mountain Resort, in order to accommodate a buried snowmaking water line within Mt.Mansfield State Forest, to run from the Waterbury Reservoir to Mt. Mansfield Company, Inc. property adjacent to state-owned land. As a condition of this authorization:

(A) The sale of the easement to Mt. Mansfield Company, Inc. shall not occur until:

(i) The agency of natural resources has completed a favorable review of the impacts of the proposed pipeline and withdrawal, and all required state and federal permits have been issued for the project.

(ii) The commissioner of forests, parks and recreation has made a finding that the easement will not have an adverse impact upon the current and future forestry research and monitoring activities taking place in the area of the easement. The commissioner and Mt. Mansfield Company, Inc. may agree upon measures to mitigate any adverse impacts of the easement.

(B) The department of forests, parks and recreation shall carry out this subdivision in accordance with departmental policy related to state land management planning and public involvement in state land management planning.

(3) To amend the lease with Okemo Mountain, Inc. which would reconfigure the perimeter of the present leasehold situation within Okemo State Forest in the towns of Ludlow and Mt. Holly, by expanding the size of the leasehold by approximately 385 acres.

(4) To exchange rights-of-way with Jack Darling, whereby the state would relinquish an existing nondeveloped right-of-way in exchange for a developed right-of-way for forest management access into Willoughby State Forest in the town of Westmore.

(b) Notwithstanding section 104 of Title 29, the net proceeds of any transaction authorized by this section shall be deposited with the state treasurer to be held in the agency of natural resources’ land acquisition special fund for use by the agency of natural resources in acquiring conservation lands as authorized by the general assembly.

* * * Capital Construction Act Amendments * * *

Sec. 39. Sec. 6(a)(3) of Act No. 185 of the Acts of 1995 (Adjourned Session) is amended to read:

(3) Waitsfield, agency of transportation garage, site

acquisition, site preparation and initial construction activity;

the agency of transportation is authorized to accept fill for use

on this project, at no cost to the state, from the Sugarbush

Resort in Warren: $ 130,000.

Sec. 40. Sec. 89(b) of Act No. 233 of the Acts of 1993 (Adjourned Session), as amended by Sec. 62 of Act No. 185 of the Acts of 1995 (Adjourned Session), is amended to read:

(b) Definition. As used herein:

(1) "Newport state office building and improvements to the City of Newport waterfront" means the project in the City of Newport authorized by the general assembly, including the appropriation of state funds for this purpose, by Sec. 1(a)(3)(A) of Act No. 59 of the Acts of 1993 as amended by Sec. 40 of Act No. 233 of the Acts of 1993 (Adjourned Session), and for which additional funds are appropriated by Sec. 2(c)(3) of Act No. 233 of the Acts of 1993 (Adjourned Session) *[and by]*, Sec. 1(a)(2) of Act No. 185 of the Acts of 1995 (Adjourned Session), and by Sec. 2(b)(1) of this act. The project is further defined as "Sites 1 and 2" on a plan entitled, "Proposed Newport State Office Building and Waterfront Improvements in The City of Newport," dated May 9, 1994, prepared for Land Works, Landscape Architects, of Middlebury, Vermont, signed May 24, 1994 by the chairs of the House and Senate institutions committees and by the commissioner of state buildings, and filed with the office of the secretary of state on May 26, 1994, plus (i) the parcel known as Reed’s Mobil Gas Station which Sec. 30 of *[this act]* Act No. 185 of the Acts of 1995 (Adjourned Session) authorizes the commissioner of state buildings to purchase and to add to the project site, and (ii) a portion of the parcel owned by the Chittenden Bank and located immediately adjacent to Coventry Street at the southeast corner of the juncture of Coventry Street and Main Street which Sec. 36 of this act authorizes the commissioner of buildings and general services to purchase and to add to the project site.

* * *

Sec. 41. Sec. 1(d) of Act No. 185 of the Acts of 1995 (Adjourned Session) is amended to read:

(d) The commissioner of state buildings is authorized to enter into multi-year contracts with energy service companies for energy efficiency and fuel switching improvements to state facilities, the cost of which will be recovered through the avoided fuel, utility, operating and maintenance costs resulting from the improvements. Improvements must within *[five]* ten years achieve savings sufficient to cover their costs. The total cost of all improvements undertaken pursuant to this subsection shall not exceed $1,000,000. All contracts shall be approved by the emergency board. The commissioner shall report *[by January 15, 1997]* annually to the house and senate institutions committees on the status of contracts undertaken under this subsection.

* * * Other Statutory Amendments and Additions * * *

Sec. 42. 21 V.S.A. 252a is amended to read:

252a. HISTORIC VARIANCE APPEALS BOARD; VARIANCES;

EXEMPTIONS

* * *

*[(h) This section shall cease to exist on July 1, 1997 unless reenacted by the general assembly.]*

Sec. 43. Sec. 1(b) of Act No. 102 of the Acts of 1995 (Adjourned Session) is amended to read:

(b) The commissioner of state buildings, with the approval of the secretary of administration, is authorized to offer options on four additional parcels located in the Town of Duxbury, to the Town of Duxbury, for a consideration of $1.00 for each option. The four parcels are identified on the master plan and the correspondence referred to in subsection (a) of this section. The purchase by the Town of Duxbury of any one or more of the four parcels shall be completed on or before June 30, 1996. Any of the parcels not purchased *[by]* or under active negotiation between the Town of Duxbury and the state of Vermont on or before June 30, 1996, shall after that date be offered on the open market at its fair market value as determined through a publicly advertised sale. The sale price of any of the four parcels if sold to the Town of Duxbury shall be its fair market value as determined by the director of the division of property valuation and review. The sale ofany of the four parcels to a party other than the Town of Duxbury shall be subject to final approval by the joint fiscal committee, which approval may be withheld.

Sec. 44. 28 V.S.A. 761 is added to read:

761. OFFENDER WORK PROGRAMS BOARD

(a) An offender work programs board is established for the purpose of advising the department on the use of offender labor for the public good.

(1) The board shall consist of nine members, each appointed by the governor for a three-year term or until a successor is appointed, as follows:

(A) four representatives of customers of the products and services of offender work programs, two of whom shall represent public sector customers, and two of whom shall represent private nonprofit organization customers;

(B) two representatives of private business organizations;

(C) two representatives of labor or labor organizations; and

(D) one at large member.

(2) Members of the board shall elect a chair and vice-chair from among the members, each of whom shall serve for one year or until a successor is elected.

(3) The board shall report on its activities at the request of the commissioner, and at least annually to the commissioner and to the house and senate committees on institutions.

(b) Vermont correctional industries shall not expand into an existing market unless the commissioner has consulted with the offender work programs board and has evaluated the impact of the expansion on the existing market.

Sec. 45. STUDY; VERMONT CORRECTIONAL INDUSTRIES COMMITTEE

(a) A committee is established to study the Vermont correctional industries (VCI) of the department of corrections, consisting of six members, three from the house appointed by the speaker of the house, and three from the senate appointed by the committee on committees.

(b) The committee shall examine: the original purpose, goals and functions of VCI and recent changes in these; the impact of VCI activities on private sector businesses involved in the same businesses in which VCI chooses to compete; VCI pricing policies,including discount offers; and VCI marketing strategy. The department of corrections, the VCI, and the legislative council shall assist the committee as requested.

(c) The committee shall report its findings and recommendations to the house and senate committees on institutions by January 15, 1998.

Sec. 46. STUDY; FUNDING RECREATION NEEDS OF INMATES

By January 15, 1998, the secretary of human services shall study and recommend to the house and senate committees on institutions an alternative method of funding the cost of staff assigned to organize and supervise the recreation needs of inmates. It shall be a goal of the study and recommendation to reduce the dependence on telephone commissions and surcharges assessed against persons receiving collect telephone calls from inmates.

Sec. 47. PLAN; INMATE TELEPHONE USE

(a) The Commissioner of the Department of Corrections shall by January 15, 1998 recommend to the house and senate committees on institutions a plan to authorize inmates who are classified as minimum security to reduce the cost of making telephone calls, and to reduce the cost to persons receiving collect telephone calls from inmates. The plan:

(1) shall address the use of prepaid telephone cards which do not require operator assistance;

(2) shall address potential security problems that may develop with the implementation of the recommended telephone calling system;

(3) shall address reducing the commission or surcharge collected by the department on received telephone calls placed by inmates; and

(4) may include a requirement that an inmate sign a waiver to allow for the recording of all telephone calls made through the use of this plan.

(b) The commissioner of buildings and general services by January 15, 1998 shall present a proposed budget to cover the cost of installing the necessary telephone pay stations to enable usage and operation of this proposed system.

Sec. 48. STUDY; VISITOR INFORMATION AND WELCOME CENTER

The commissioner of buildings and general services, the capitol complex commission, the city-state commission, the Montpelier Travel and Tourism Council and the nationalveterans’ organizations with offices presently in Montpelier, shall recommend a building located within the capitol complex in Montpelier to house, and a means of financing the operation of, a visitor information and welcome center providing tourist information concerning the state capitol, the city of Montpelier, the Central Vermont region and the state of Vermont. The commissioner shall present a proposed plan by January 15, 1998 to the house and senate committees on institutions.

Sec. 49. STUDY; ADDISON COUNTY COMBINED PUBLIC SAFETY

FACILITY

(a) A committee is established to study an Addison County combined public safety facility. The committee shall consist of: the chief executive officer or his or her designee of: the departments of public safety, and of buildings and general services; the City of Vergennes; the Board of Selectmen of the towns of Bristol, New Haven and Middlebury; the communications section of the division of criminal justice services of the department of public safety; and the Vermont state police union executive committee. The commissioner of buildings and general services shall convene the first meeting of the committee. The committee shall be co-chaired by the commissioners of public safety and of buildings and general services. Meetings shall be held in Addison County.

(b) The committee shall study the location, design and construction, fit-up, costs, financing, and operational organization of a single facility in Addison County to provide for the agreed upon common needs of municipal, county, state law enforcement and fire protection entities serving the county or area.

(c) The study shall analyze the common and separate space and equipment requirements of participating organizations, including: space for staff offices, conference room or rooms, interrogation room or rooms, holding cell or cells, vehicle and maintenance garage, parking, and site layout; plus equipment for dispatching, radio broadcasting and receiving telecommunications; electronic data processing, security, and building mechanical systems.

(d) The departments of public safety and buildings and general services shall provide staff support to the committee. The committee shall report its findings andrecommendations, including budget and finance proposals, by January 15, 1998 to the senate and house committees on institutions.

Sec. 50. HISTORIC ORLEANS COUNTY JAIL

The Orleans County Jail, improvements to which have been financed by state capital funds appropriated pursuant to section 701a of Title 32, may be demolished only after:

(1) The Vermont Advisory Council on Historic Preservation has, at the request of the assistant judges of Orleans County, examined the historic significance of the jail and has recommended to the general assembly whether the jail should be demolished; and

(2) The general assembly has considered the recommendation of the Vermont Advisory Council on Historic Preservation and has approved demolition of the jail.

Sec. 51. 16 V.S.A. 3444a is added to read:

3444a. SAFETY AND HEALTH CONDITIONS IN SCHOOLS

(a) The state board of education shall by August 1, 1997:

(1) Develop a protocol for identifying and resolving safety and health-related problems within each school concerning the physical structure, its mechanical equipment and furnishings, and for preparing a safety and health prevention plan, including a schedule of in-house annual inspections and remedial maintenance actions.

(2) Recommend membership on an in-house safety and health committee to hear complaints unable to be resolved in accordance with the protocol provided by subdivision (1) of this subsection.

(b) The state board shall by September 1, 1997 submit to the house and senate committees on education, and to each school district, a model guideline, including standards and procedures, to assist districts in addressing school safety and health related issues.

Sec. 52. 23 V.S.A. 3305(k) is added to read:

(k) The commissioner shall enclose with every permanent and temporary motorboat registration and registration renewal certificate issued pursuant to this chapter the following statement:

"I. Transporting zebra mussels or Eurasian milfoil to or from any Vermont watersurface is illegal (10 V.S.A. 1266).

"II. If your boat or equipment is exposed to Lake Champlain or any other zebra mussel or Eurasian milfoil infested water, the following steps should be taken prior to putting your boat or equipment in another Vermont lake, pond or other water body:

"A. Inspect for and scrape off from your boat’s hull or equipment or any exposed areas any visible mussels or milfoil.

"B. Carefully flush with clean water all boat hulls, outdrive, live wells, bilge, trailers, anchors, ropes, bait buckets, raw engine cabling systems and other boat parts or equipment.

"C. Dry boats, trailers and equipment thoroughly in the sun."

Sec. 53. 29 V.S.A. 1160 is amended to read:

1160. JOURNALS OF THE SENATE AND HOUSE OF REPRESENTATIVES

The journals of the senate and house of representatives shall be distributed as follows:

To the secretary of state, to the clerks of the house of representatives, and to the secretary of the senate, five copies each. One copy to each *[of]* upon written request made by July 1 of each year shall be made available to the following officers and institutions: elective and appointive state officers, the clerk of each state board, justices and ex-justices of the supreme court, superior judges, the reporter of decisions, the attorney general, senators and representatives of this state in Congress, members of the general assembly during the session of which it is a journal, county clerks, town clerks, the University of Vermont, Middlebury College, Norwich University, Vermont historical society, each free public library in the state, each state, territorial or district library in the United States, each province of the Dominion of Canada, each teacher training course and the state agricultural school. Any copies remaining undisposed of shall be disposed of in the same manner as provided for the surplus copies of the acts and resolves.

Sec. 54. 2 V.S.A. 13 is amended to read:

13. JOURNALS

(a) At the close of each legislative day, the secretary of the senate and clerk of the house of representatives shall prepare a copy of the journal of their respective bodies forsuch day.

(b) *[Three hundred and fifty copies of each such journal shall be printed. Such]* At the start of each biennial session, the senate and house committees on rules shall determine which members of each body respectively wish to receive the journal throughout the session, and the secretary and clerk shall determine which heads of state departments wish to receive the journal throughout the session. Each journal shall be printed in a quantity sufficient to meet these wishes. The secretary and clerk shall place one copy of each journal on the desk of each member of their respective bodies who has requested the journal before the opening of the morning session of the following legislative day and, at the same time, send one of each to *[the]* each department head *[of each state department having an office in Montpelier and the]* who has requested the journal. Any remaining copies shall be distributed under the direction of such secretary and clerk.

(c) Such journals shall contain all motions, votes, orders and proceedings, but shall not contain any remark of a member or words spoken for or against a pending question.

*[(d) The secretary of the senate and clerk of the house of representatives shall include as an addendum to the final journal prepared for each annual session of the general assembly:]*

*[(1) the general appropriation bill, provided by section 701 of Title 32, as adopted that year, plus the statement of legislative intent regarding the act issued by the chairs of the senate and house appropriations committees; and]*

*[(2) the capital construction bill, provided by section 701a of Title 32, as adopted that year, plus the statement of legislative intent regarding the act issued by the chairs of the senate and house institutions committees and the spreadsheet prepared by legislative council staff regarding the act.]*

Sec. 55. REPEAL

Sec. 67 of Act No. 185 of the Acts of 1996 (distribution of journal addendum) is repealed.

Sec. 56. 19 V.S.A. 1111(d) is amended to read:

(d) Use by private sewer *[companies]* or water lines. The agency may issue *[a permi]*tpermits allowing the use of highway rights-of-way *[by]* for private sewer *[companies]* or water lines if, following notice and hearing, the board certifies to the agency that the requested use will serve the needs of the public. In its certificate, the board may attach conditions as are required, including but not limited to the following:

(1) the installation of sewer or water lines shall conform with plans and specifications approved by the agency and shall be relocated at no cost to the state whenever the right-of-way is needed for highway purposes;

(2) reimbursement of the agency by the permit applicant for the actual costs of the review, inspection and engineering services provided by the agency for these installations;

(3) reimbursement of the agency by the permit applicant for the cost of assigning an inspector to the project during construction.

* * * Municipal Water Supply Facilities * * *

Sec. 57. 10 V.S.A. 1571(9) is added to read:

(9) "Disadvantaged municipality" means a municipality or the served area of a municipality which has a median household income below the state average median household income as determined by the secretary, and which after construction of the proposed water supply improvements will have an annual household user cost greater than 1.25 percent of the median household income as determined by the secretary.

Sec. 58. 10 V.S.A. 1621 is amended to read:

1621. *[GRANTS-IN-AID]* FINANCIAL ASSISTANCE

A municipality which desires *[a]* state financial assistance *[grant]* for construction, improvement or expansion of potable water supply facilities, water pollution abatement facilities, or combined sewer separation facilities, may make application to the department in accordance with this subchapter.

Sec. 59. 10 V.S.A. 1622 is amended to read:

1622. ELIGIBLE PROJECTS

For purposes of this subchapter, eligible project costs shall include:

(1) *[In the case of potable water supply projects, the costs of development of water sources, treatment facilities, pumping and storage facilities, the main transmission systemto the center of the populated area, and attendant facilities determined necessary by the department, an approved grant allowance to defray all or a portion of the engineering costs, and up to a $3,000.00 grant allowance for administrative and legal costs relating to the project but shall exclude all costs of land and easements required for the project and legal and administrative costs incident thereto.]* In the case of potable water supply projects receiving grants under section 1624(a) of this title, the costs of development of water sources, treatment facilities, pumping and storage facilities, the main transmission system to the center of the population area, and attendant facilities determined necessary by the department, an approved grant allowance to defray all or a portion of the engineering costs, and up to a $3,000.00 grant allowance for administrative and legal costs relating to the project, but shall exclude all costs of land and easements required for the project and legal and administrative costs incident thereto. For a potable water supply project receiving a loan under section 1624(b) of this title, the total project cost as determined by the secretary consistent with federal law.

* * *

Sec. 60. 10 V.S.A. 1624 is amended to read:

1624. *[AWARDS FOR]* FINANCIAL ASSISTANCE WITH WATER SUPPLY PROJECTS

(a) *[When]* Grants. The secretary may award a municipality a state grant for a potable water supply facility of up to 35 percent of its total eligible project cost, when the municipality contributes at least ten percent of the total eligible costs, for which purpose the municipality may use federal funds obtained from other programs, and when the *[department]* secretary finds that:

(1) the *[proposed potable water supply facilities are]* project is necessary*[; that]*, and the proposed type, *[kind, quality,]* size and estimated cost of the project are suitable for *[the]* its intended purpose *[for which the project is intended, and that]*;

(2) at least one-half of the property owners of the new area of the municipality to be served by the project have contracted to connect to the water system and pay for service at rates which the legislative body of the municipality determines to be adequate tocover the anticipated operating and maintenance costs including debt services; *[and that]*

(3) the *[proposal for]* proposed rate and fee *[schedules provided]* schedule provide for reasonable contributions by all persons in the municipality benefited by the project*[, the department of environmental conservation may award a state assistance grant of up to 35 percent of the eligible project costs. In each case the municipality shall contribute at least ten percent of the eligible project costs, but may use federal funds obtained from other programs toward this amount]*; and

(4) the municipality has voted bonds for the project prior to April 5, 1997 in anticipation of the receipt of a construction grant authorized under this subsection.

(b) *[Notwithstanding any other provision in this chapter, the department may award a state assistance grant of up to 50 percent of the eligible costs of an approved project or a portion thereof in a municipality that is certified by the secretary of commerce and community development to be within the designated job development zone. To achieve the objectives of 10 V.S.A. chapter 29, subchapter 2, the eligibility and priority provisions of this chapter do not apply to municipalities within a designated job development zone.]* Loans.

(1) The secretary may certify to the Vermont municipal bond bank established by section 4571 of Title 24 the award of a loan to a municipality to assist with a potable water supply facility project, when the secretary finds that:

(A) the project is necessary;

(B) the proposed type, size and estimated cost of the project are suitable for its intended purpose; and

(C) the municipality will have the technical, financial and managerial ability to operate the facility in compliance with federal and state law.

(2) The certification by the secretary shall indicate which of the following loan conditions apply:

(A) The term shall not exceed 20 years, and the annual interest rate shall be no more than three percent or less than zero percent, except that when the applicant municipality is disadvantaged as defined by section 1571(9) of this title, the term shall notexceed 30 years, and the annual interest rate shall be no more than three percent or less than minus three percent.

(B) In no instance shall the annual interest rate be less than necessary to achieve an annual household user cost of one and one-quarter percent of the median household income of the applicant municipality or served area, taking into account:

(i) debt retirement of the project, including any monies a municipality may borrow to match federal funds available to the drinking water state revolving fund pursuant to subsection (d) of this section;

(ii) prior drinking water projects; and

(iii) estimated annual operation and maintenance costs as determined by the secretary.

(3) A municipal legislative body may execute a loan agreement under this subsection, provided the terms of the loan are authorized by municipal voters and are secured by the full faith and credit of the municipality.

(4) A loan shall be issued and administered pursuant to chapter 120 of Title 24.

(5) Loans shall be available to the extent funds are available and according to priorities established by the secretary.

(6) For purposes of this subsection, the secretary shall determine the median household income of a municipality from the most recent federal census data, or at the option of an applicant municipality, based on the recommendation of an independent contractor hired by the municipality and approved by the secretary. The determination of the secretary shall be final. The cost of an independent contractor may be included in the total cost of a project.

(7) Loans awarded for the purpose of refinancing old debt shall be for a term of no more than 20 years and at an interest rate set by the state treasurer at no less than zero percent and no more than 80 percent of the average rate on marketable obligations of the state, except that municipalities or private water system owners which qualify for loan awards under section 4770 of Title 24 and which incurred debt and initiated construction after April 5, 1997 may receive loans at interest rates and terms pursuant to subdivision(b)(2)(A) of this section.

* * *

(c) Municipal match of federal revolving funds.

(1) A municipality may choose to provide the state money necessary to match federal monies available to the drinking water state revolving fund established by section 4753(a)(3) of Title 24, and thereby become eligible to receive a loan from the revolving fund in the amount of the total cost of a water facility project approved under this section. Such a loan from the revolving fund, for up to the total project cost, shall be approved by municipal voters and secured by the full faith and credit of the municipality or anticipated revenues from municipal water charges.

(2) The amount of such a municipal match of federal funds shall be equal to one-sixth of the total project cost, which shall constitute a sum in addition to the amount of a loan for the total project cost to be received by the municipality from the revolving fund. A municipality is authorized to borrow monies needed for the match amount, from sources other than the revolving fund, which shall be approved by municipal voters and secured by the full faith and credit of the municipality or anticipated revenues from municipal water charges, or a municipality may use other funds or tax revenues available to it for this purpose.

(d) Upon request of the owner of a privately-owned public water system, a municipality shall apply for and support an application for a community development block grant to receive use of state and federal funds provided:

(1) the private water system owner agrees to pay all administrative and legal costs incurred by the municipality in pursuit of the grant;

(2) the municipality finds that the project to be supported by the grant is consistent with applicable local and regional plans, and local ordinances or other local enactments;

(3) the private water system owner, to the extent practicable, undertakes the administration of logistical and legal work necessary to prepare the application materials; and

(4) the private water system owner agrees to hold the municipality harmless fromany claims of liability arising from the grant application or project.

Sec. 61. 24 V.S.A. 1751 is amended to read:

1751. DEFINITIONS

* * *

(3) "Improvement," as used in this chapter, shall include, apart from its ordinary signification, the acquiring of land for municipal purposes, the construction of, extension of, additions to, or remodeling of buildings or other improvements thereto, also furnishings, equipment or apparatus to be used for or in connection with any existing or new improvement, work, department or other corporate purpose, and also shall include the purchase or acquisition of other capital assets, including licenses and permits, in connection with any existing or new improvement benefiting the municipal corporation, and all costs incurred by the municipality in connection with the construction or acquisition of the improvement and the financing thereof, including without limitation capitalized interest, underwriters discount *[and]*, the funding of reserves and the payment of contributions to establish eligibility and participation with respect to loans made from any state revolving fund, to the extent such payment is consistent with federal law.

Sec. 62. 24 V.S.A. 3313 is amended to read:

3313. DUTIES OF WATER COMMISSIONERS, USE OF PROCEEDS

(a) Water commissioners shall have the supervision of such municipal water department and shall make and establish all needful water rates, charges, rules and regulations for its control and operation. Such commissioners may appoint or remove a superintendent at their pleasure. The *[rents and]* receipts *[for the use of such municipal water]* derived by the municipal corporation from its waterworks shall only be used and applied to pay the principal and interest upon the water bonds of such municipal corporation, the expense of repairs and management of the water department, and *[in]* payment *[of the municipal water department bonds]* into the dedicated fund created under subsection (b) of this section. *[The money received from the operation of such municipal water department shall not be used for any other purposes until all such bonds have been paid.]*

(b) Receipts derived by a municipality from its waterworks may be deposited in a dedicated fund created by the water commissioners under section 2804 of this title, to finance major rehabilitation, major maintenance and costs of upgrading the water supply system, and for the accumulation of funds to be used to match federal funds pursuant to section 1624(d) of Title 10. Such revenues may include a surcharge established by the water commissioners of up to 15 percent on the costs of normal operations, maintenance and debt service. The fund balance shall not exceed the estimated costs of the purposes for which the fund is established, and shall be maintained in deposits insured by the United States of America or an agency of the United States. Withdrawals shall be made only for purposes for which the fund was established. Such a fund shall meet the requirements of section 4756(a)(4) of this title.

Sec. 63. 24 V.S.A. 3348 is amended to read:

3348. FINANCES; WATER RATES; APPLICATION OF REVENUE

(a) Notwithstanding the provisions of section 3311 of this title, the board of water commissioners of a consolidated water district shall establish rates for the water and services by meter service and all individuals, firms and corporations, whether private, public or municipal, shall pay to the treasurer of said district the rates and stand-by charges established by said board of water commissioners. In those districts where water is supplied by the consolidated water district to the consumer, rates shall be uniform within the district. A wholesale consolidated water district shall set a rate which is uniform to all member towns, and it may further establish a separate schedule for non-member users. The board of water commissioners may also enter into a contract with member and non-member municipalities for the supply of water over a period of years. All rates shall be so established as to provide revenue for the following purposes:

(1) to pay current expenses for operating and maintaining the water systems;

(2) to provide for the payment of interest on the indebtedness created by the district;

(3) to provide each year a sum equal to not less than two per cent or more than five per cent of the entire indebtedness created or assumed by the district to pay for the cost ofthe water system and improvements thereto, which sum shall be used to pay indebtedness maturing in said year or turned into a sinking fund and there kept to provide for the extinguishment of indebtedness of the district;

(4) to capitalize a sinking fund the proceeds of which shall be used to match federal funds;

*[(4)]*(5) If any surplus remains at the end of the year, it may be turned into the sinking fund or used to pay the cost of improvements to the water system.

(b) The money set aside for the sinking fund and any increment thereon shall be devoted to the retirement of obligations of the district or for the purpose of matching federal funds, or invested in such securities as savings banks or fiduciaries or trustees are now or hereafter allowed to hold. The balance of the revenue, if any, required to meet said expenses shall be apportioned among and collected from member towns as herein provided.

* * * Other Water Supply Facilities * * *

Sec. 64. DESIGNATION

24 V.S.A. 4751, 4752, and 4753 are designated as:

Subchapter 1. General Provisions

Sec. 65. 24 V.S.A. 4751 is amended to read:

4751. DECLARATION OF POLICY

It is hereby declared to be in the public interest to foster and promote timely expenditures by municipalities for water supply, water pollution control and solid waste management, each of which is declared to be an essential governmental function when undertaken and implemented by a municipality. It is also declared to be in the public interest to promote expenditures for certain existing privately-owned public water systems to bring those systems into compliance with federal and state standards and to protect public health.

Sec. 66. 24 V.S.A. 4752 is amended to read:

4752. DEFINITIONS

For the purposes of this chapter:

(1) "Agency *[having jurisdiction]*" means the agency of natural resources.

(2) "Bond bank" means the Vermont municipal bond bank established by section 4571 of this title.

(3) "Municipality" means any city, town, village, town school district, incorporated school district, union school district or other school district, fire district, consolidated sewer district, consolidated water district or solid waste district organized under laws of the state.

(4) "Municipal bond" means a bond or note or evidence of debt constituting a general obligation of a municipality.

(5) "Secretary" means the secretary of the agency of natural resources or his or her authorized representative.

(6) "Noncommunity water system" means a noncommunity water system as that term is defined in section 1671 of Title 10.

(7) "Privately-owned water system" means any water system which is not owned or operated by a municipality.

(8) "Community water system" means a public community water system as that term is defined in section 1671 of Title 10.

(9) "Public water system" means a public water system as that term is defined in section 1671 of Title 10.

Sec. 67. 24 V.S.A. 4753 is amended to read:

4753. REVOLVING LOAN FUNDS

(a) There is hereby established a series of special funds to be known as:

(1) The Vermont environmental protection agency (EPA) pollution control revolving fund which shall be used to provide loans to municipalities for planning sewage systems and sewage disposal plans as defined in sections 3501(6) and 3601 of this title, for constructing publicly-owned sewage systems and sewage disposal plans as defined in sections 3501(6) and 3601 of this title, and for implementing related management programs.

(2) The Vermont pollution control revolving fund which shall be used to provideloans to municipalities for planning pollution control facilities and for constructing publicly-owned pollution control facilities.

(3) *[The Vermont water supply revolving fund which shall be used to provide loans to municipalities for planning water supplies and water systems as defined in sections 3301 and 3341(2) of this title, and for constructing publicly-owned water supplies and water systems as defined in sections 3301 and 3341(2) of this title.]* The Vermont environmental protection agency (EPA) drinking water state revolving fund which shall be used to provide loans to municipalities and certain privately-owned water systems for:

(A) planning, designing, constructing, repairing or improving a public water system in order to comply with state and federal standards and protect public health; and

(B) implementing related management programs.

* * *

(b) Each of such funds shall be established and held separate and apart from any other funds or moneys of state and shall be used and administered exclusively for the purpose of this chapter. These funds shall be administered by the bond bank on behalf of the state *[and the]*, except that the fund shall be administered by VEDA concerning loans to privately-owned water systems under subdivision (a)(3) of this section. The funds shall be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury. The funds shall consist of the following:

* * *

(d) Funds from the Vermont environmental protection agency pollution control fund and the Vermont pollution control revolving fund, established by subdivisions (1) and (2) of subsection (a) of this section, may be awarded for the construction of a new or an enlarged waste water treatment plant with a resulting total capacity of 250,000 gallons or more per day in accordance with the provisions of this chapter and section *[1626]* 1626a of Title 10.

Sec. 68. DESIGNATION

24 V.S.A. 4754 through 4762 are designated as:

Subchapter 2. Municipal Loans

Sec. 69. 24 V.S.A. 4755 is amended to read:

4755. LOAN; LOAN AGREEMENTS

(a) *[The]* Except as provided by subsection (c) of this section, the bond bank may make loans to a municipality on behalf of the state for one or more of the purposes set forth in section 4754 of this chapter. Each of such loans shall be made subject to the following conditions and limitations:

* * *

(3) the loan shall be evidenced by a municipal bond, payable by the municipality over a term not to exceed 20 years, and without deferral of payment except as provided by 10 V.S.A. 1624(b) and 1624a, or by any other permitted debt instrument payable as permitted by chapter 53 of this title; and

(4) the rate of interest charged for the loans made to municipalities under this chapter, or the manner of determining the same, shall be established from time to time by the state treasurer after consultation with the secretary of the agency *[having jurisdiction]* taking into consideration the current average rate on outstanding marketable obligations of the state as of the last day of the preceding month. The rate of interest shall be no less than zero percent nor more than 80 percent of the average rate on marketable obligations of the state. Notwithstanding all other requirements of this subdivision, the interest rate charged for municipal water supply projects shall be established by the secretary pursuant to section 1624 of Title 10.

* * *

(c) The Vermont economic development authority shall make loans on behalf of the state when the loan recipient is a privately-owned public water system. Such loans shall be issued and administered pursuant to subchapter 3 of this chapter.

Sec. 70. 24 V.S.A. 4756 is amended to read:

4756. ELIGIBILITY CERTIFICATION

(a) No construction loan to a municipality shall be made under this chapter, nor shall any part of any revolving fund which is designated for project construction be expended under section 4757 of this title, until such time as:

(1) the secretary *[of the agency having jurisdiction]* shall certify to the bond bank that all *[necessary]* water supply and wastewater permits, land use, subdivision, public building and discharge permits, necessary to construct and operate the improvements to be financed by the loan have been issued to the applicant municipality;

* * *

(5) the applicant municipality, and the project to be financed by the proceeds of the loan, have been designated by the agency *[having jurisdiction]*, or a department thereof, as eligible to participate in a construction or implementation program funded wholly or in part by the state or the United States of America;

(6) the secretary *[of the agency having jurisdiction]* shall certify to the bond bank that any management program to be financed under subsection 4753(a)(1) and section 4754 of this title is in conformance with all applicable state and federal laws, and all regulations promulgated thereunder;

(7) the secretary *[of the agency having jurisdiction]* shall certify to the bond bank that the loan eligibility priority established under section 4758 of this chapter entitles the applicant municipality to immediate financing or assistance under this chapter;

(8) the secretary *[of the agency having jurisdiction]* shall certify to the bond bank the outstanding balance of engineering planning advances paid to the applicant municipality under chapter 55 of Title 10 and included within the loan application submitted under section 4754 of this chapter; and

* * *

(g) The secretary *[of the agency having jurisdiction]* shall not certify a solid waste project without first finding that the proposed project conforms to the state and local solid waste management plans adopted in accordance with chapter 159 of Title 10. Until such plans are adopted the secretary shall certify that the project will promote the goals and purposes of chapter 159 of Title 10 and the solid waste task force report.

Sec. 71. 24 V.S.A. 4757 is amended to read:

4757. REVOLVING LOAN FUNDS; ADDITIONAL USES

In addition to providing a source of funds from which loans may be made tomunicipalities under this chapter, each fund created under section 4753 of this chapter may be used for one or more of the following purposes:

(1) to make loans, to refund bonds or notes of a municipality issued after March 7, 1985 for sewerage works, or after July 1, 1993 for water supply systems for the purpose of financing the construction of any capital improvements or management program described in section 4753 and certified under section 4756 of this title;

* * *

(5) to pay the costs of the bond bank, VEDA and the agency *[having jurisdiction]* associated with the administration of each fund; provided, however, that no more than four percent of the aggregate of the highest fund balances in any fiscal year shall be used for such purposes, and that a separate account be established outside the drinking water state revolving fund for such purposes. As used in this subsection, costs shall include fiscal, clerical, administrative and issuance expenditures directly attributable and allocated to the maintenance implementation and administration of the loan funds created under this chapter.

Sec. 72. 24 V.S.A. 4758 is amended to read:

4758. LOAN PRIORITIES

Periodically, and at least annually, the secretary *[of the agency having jurisdiction]* shall prepare and certify to the bond bank a project priority list of those municipalities whose publicly-owned projects are eligible for financing or assistance under this chapter. In determining financing priority under this chapter, the secretary of the agency having jurisdiction shall apply the following criteria:

* * *

Sec. 73. 24 V.S.A. 4759 is amended to read:

4759. REGULATIONS

The secretary *[of the agency having jurisdiction]* and the bond bank may adopt *[such regulations,]* rules and policies *[as are]* necessary to implement the provisions of this chapter in order to ensure the self-sustaining nature of the funds created under section 4753 of this chapter, and also to ensure compliance with the requirements of Title VI of the federalClean Water Act and Section 1452 of the federal Safe Drinking Water Act.

Sec. 74. 24 V.S.A. 4760 is amended to read:

4760. CONTRACTUAL AUTHORITY; REPORTS

(a) The secretary *[of the agency having jurisdiction]* and the bond bank may enter into agreements on behalf of the state with agencies of the United States of America as may be necessary to obtain grants and awards in furtherance of the stated purposes for which the loan funds created under section 4753 of this title are established; provided, however, that notification of each of such agreements shall be made in a timely fashion to the chairpersons of the house committee on appropriations and the senate committee on appropriations while the general assembly is in session, and at all other times to the chairpersons of the joint fiscal committee, and further provided that acceptance of any such grant or award be approved as provided by law.

(b) Annually, the secretary *[of the agency having jurisdiction]* and the bond bank shall notify the chairpersons of the house committee on appropriations and the senate committee on appropriations of the amount of each of the separate funds created under section 4753 of this title anticipated to be available for the next fiscal year.

Sec. 75. 24 V.S.A. chapter 120, subchapter 3 is added to read:

Subchapter 3. Private Loans

4770. ELIGIBILITY

(a) For the purpose of this subchapter, "VEDA" means the Vermont economic development authority which is authorized to make loans on behalf of the state under this chapter when the loan recipient is a privately-owned public water system. Such loans shall be issued and administered by VEDA pursuant to this subchapter.

(b) The owner or owners of a privately-owned community water system of which 80 percent or more of the served structures are occupied by year-round residents, and the owner or owners of a privately-owned nonprofit, noncommunity public water system, may apply to VEDA for a loan from the Vermont EPA drinking water state revolving fund established under subchapter 1 of this chapter, the proceeds of which may be used to acquire requisite permits, design, plan, construct, repair, or improve an existing privately-owned public community water system in order to comply with federal and state standards and protect the public health.

(1) A municipality, as defined under section 126 of Title 1, is not eligible for a loan under this subchapter.

(2) A nonprofit organization is eligible to apply for a loan under this subchapter if that organization qualifies as tax exempt.

(c) VEDA and the secretary may prescribe any form of application or procedure required of the applicant for a loan hereunder, and may impose an application fee determined reasonable and necessary to cover administrative costs. The loan application shall request such information as VEDA deems necessary to implement this subchapter.

(d) Notwithstanding the eligibility criteria of subsection (a) of this section, loan proceeds may not be used for:

(1) laboratory fees for monitoring;

(2) operations and maintenance expenses; or

(3) projects primarily intended to serve future growth.

4771. CONDITIONS OF LOAN AGREEMENT

(a) VEDA may make loans to applicants on behalf of the state for one or more of the purposes set forth in section 4770(b) of this title. Each such loan shall be made subject to the following conditions:

(1) The loan shall be evidenced by a note payable over a term not to exceed 20 years. Repayment shall commence no later than one year after completion of the project for which loan funds have been applied.

(2) The loan shall be secured with assets as determined by VEDA. VEDA may also require that the applicant assign all or a portion of the water system revenues as security for the loan, or may require the establishment of a reserve fund.

(3) The loan recipient shall establish a dedicated source of revenue for repayment of the loan which may include, but is not limited to, a pledge of revenue from user charges, tap fees, development charges, and pledges of accounts receivable and the proceeds therefrom.

(4) The rate of interest charged for loans shall be set by the state treasurer, taking into consideration prevailing borrowing rates available to similarly situated applicants from private lenders. VEDA, in cooperation with the secretary, shall periodically recommend interest rates to be set by the state treasurer which are the lowest practicable rates consistent with maintaining the long-term integrity of the fund. The interest rate set by the state treasurer may be less than the prevailing borrowing rates available to similarly situated applicants from private lenders, but not less than zero percent.

(5) Notwithstanding subdivision (4) of this subsection, a privately-owned nonprofit community type system may qualify for a 30-year loan term at an interest rate to be established by the secretary of natural resources which shall be no more than three percent or less than minus three percent, provided the applicant system meets the income level and annual household user cost requirements of a disadvantaged municipality as defined in section 1571(9) of Title 10, in which case the secretary shall certify the loan term and interest rate to VEDA. In no instance shall the annual interest rate be less than is necessary to achieve an annual household user cost of one and one-quarter percent of the median household income of the applicant water system computed in the same manner as prescribed in section 1624(b)(2)(B) of Title 10.

(b) Loans made to applicants by VEDA on behalf of the state under this subchapter shall be made in accordance with the terms and conditions specified in a loan agreement to be executed by VEDA and the applicant. The loan agreement shall specify the terms and conditions of the loan and repayment by the applicant, as well as other terms and conditions determined necessary by VEDA and the secretary.

(c) Disbursement of loan proceeds shall be based on certification by the loan recipient demonstrating that costs for which reimbursement is requested have been incurred and paid by the recipient. The recipient shall provide supporting evidence of payment upon the request of VEDA. Partial disbursements of loan proceeds shall be made not more frequently than monthly. Interim financing charges or short-term interest costs may constitute an allowable cost of a project for which a loan is extended, provided VEDA approved in advance the terms, conditions, interest rate and other related mattersconcerning such financing or interest cost. In the event short-term financing is unavailable to the applicant, VEDA may make interim loan disbursements not more frequently than monthly to the applicant and its general contractor as co-payees upon submission of a certified request for payment supported by actual invoices or other evidence satisfactory to VEDA of costs incurred.

(d) VEDA reserves the right to require confirmation from an independent registered professional engineer that work has been performed according to project plans and specifications approved by the secretary prior to making any disbursement of the loan proceeds.

(e) VEDA may include such additional requirements in the loan agreement as it determines necessary for the proper administration of the fund, and which are consistent with applicable state and federal law and with other programs administered by VEDA under chapter 12 of Title 10.

(f) VEDA may require as part of the loan agreement that the applicant cause an audit of the project costs to be prepared and approved by VEDA prior to making final payment of the loan amount.

(g) In the event of default, any amounts owed upon the loan shall be considered a debt for the purposes of section 5932(4) of Title 32. VEDA may recover such debt pursuant to the set off debt collection remedy established under sections 5933 and 5934 of Title 32.

4772. QUALIFICATIONS FOR ELIGIBILITY; CERTIFICATION

No loan to an applicant shall be made under this subchapter until:

(1) The applicant has certified to VEDA that:

(A) all state and federal permits and licenses, including land use, subdivision, water supply and wastewater permits and water supply construction and operating permits necessary to undertake the project for which financing has been sought have been issued;

(B) the applicant has established a rate charge or assessment schedule which will generate sufficient revenue to pay the principal and interest on the loan and to pay reasonably anticipated costs of operating and maintaining the financed project and the system of which it is a part. VEDA may require that the rate charge or assessmentschedule be approved by VEDA prior to approving a loan. Nothing in this subchapter shall affect the obligation of an applicant who is subject to the jurisdiction of the public service board under sections 102 and 203(3) of Title 30 to obtain prior approval of a rate change from such board pursuant to section 225 of Title 30;

(C) if the applicant is subject to the jurisdiction of the public service board under sections 102 and 203(3) of Title 30, it has obtained the following approvals and has provided VEDA with copies of those approvals:

(i) the certificate of public good issued by the public service board pursuant to section 231 of Title 30 (public good) and section 108 of Title 30 approving the loan; and

(ii) the decision and order of the public service board approving rates that are to be charged by the applicant.

(2) The secretary has certified to VEDA that:

(A) the applicant and the project qualify for financing or assistance under section 4773 of this title and that the project has priority for receipt of financial assistance; and

(B) the applicant has or as a result of the proposed project will have the technical, managerial and financial capability to ensure compliance with the requirements of the federal Safe Drinking Water Act as amended.

4773. LOAN PRIORITIES

The secretary shall at least annually prepare a list of projects, ranked in priority order, that are eligible for financial assistance under this subchapter. In establishing such priorities, the secretary shall at a minimum consider the following:

(1) the quality and quantity of water supplied by the existing system;

(2) any declared health hazard to be abated by the proposed project;

(3) the population to be served;

(4) the readiness of the project to proceed to the next planning or construction step; and

(5) the consolidation of smaller water systems into new larger water systems.

4774. CONTRACTUAL AUTHORITY; REPORTS

(a) The secretary and VEDA may enter into agreements on behalf of the state with agencies of the United States as may be necessary to obtain grants and awards in furtherance of the stated purposes of the loan fund created under section 4753 of this title, provided that notification of each such agreement shall be made to the chairs of the house and senate committees on appropriations while the general assembly is in session, and at other times to the chair of the joint fiscal committee, and that any such grant or award has been approved pursuant to section 5 of Title 32.

(b) Annually by January 15, the secretary and VEDA shall submit a report to members of the joint fiscal committee setting out the balance of the fund created by section 4753(a)(3) of this title, loan awards made to date, funds anticipated to be made available in the coming year and any other matters of interest.

4775. LIABILITY AGAINST DEFAULT

Under no circumstance shall the state or VEDA become responsible for owning or operating a privately-owned community water system when the loan recipient defaults on a loan obligation or abandons the water supply or water system.

4776. ACTION FOR RECEIVERSHIP

Upon default of a loan, VEDA shall have the right to petition the superior court in the county in which any part of the water system is located, or the public service board for systems subject to the jurisdiction of that board, to appoint a receiver.

4777. LOAN CONSOLIDATION

Loans, or the outstanding balance of loans, made for the purpose of preparing engineering plans for a project may be consolidated with any subsequent loans for construction.

4778. FEDERAL CAPITALIZATION GRANT DISTRIBUTION

The secretary may use any available and lawful funds to match federal funds otherwise available to capitalize the fund created by section 4753(a)(3) of this title. The secretary may direct up to 20 percent of the federal capitalization grant for use by privately-owned public water systems. Any balance, excepting set-asides authorized by federal law, shallbe directed to be used for loans to improve municipal water systems.

* * * Effective Date * * *

Sec. 76. EFFECTIVE DATE

This act shall take effect from passage.

Approved: June 26, 1997