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Senate Calendar

THURSDAY, APRIL 29, 1999

114th DAY OF BIENNIAL SESSION

ORDERS OF THE DAY

ACTION CALENDAR

UNFINISHED BUSINESS OF WEDNESDAY, APRIL 21, 1999

Third Reading

S. 70

An act relating to suits by state against firearms manufacturers.

UNFINISHED BUSINESS OF FRIDAY, APRIL 23, 1999

Second Reading

Favorable with Recommendation of Amendment

S. 105

An act relating to health insurer and managed care negligence.

Reported favorably with recommendation of amendment by Senator Leddy for the Committee on Judiciary.

Sec. 1. 12 V.S.A. chapter 205 is added to read:

Chapter 205. Health Insurer and Managed Care Negligence

§ 5796. PURPOSE

The purpose of this subchapter is to hold health insurance companies and managed care organizations directly accountable for the medical decisions they make so as to ensure that treating physicians and health care providers, rather than health insurance companies and managed care organizations, are in charge of the quality of patient care.

§ 5797. DEFINITIONS

As used in this subchapter:

(1) "Health care facility" means all facilities and institutions, whether public or private, proprietary or nonprofit, which offer diagnosis, treatment, inpatient or ambulatory care to two or more unrelated persons. The term shall not apply to any facility operated by religious groups relying solely on spiritual means through prayer or healing, but includes all facilities and institutions included in section 9432(10) of Title 18, except health maintenance organizations.

(2) "Health care plan" means a policy, contract, certificate or agreement entered into, offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services.

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

(4) "Health care treatment decision" means a determination made when medical services are actually provided by the health care plan and a decision which affects the quality of the diagnosis, care, or treatment provided to the plan's insureds.

(5) "Health insurer" means any health insurance company, nonprofit hospital and medical service corporation, managed care organizations, the Medicaid health care plan administered by the department of social welfare, and, to the extent permitted under federal law, any administrator or managed care organization acting on behalf of an insured, self-insured, or publicly funded health care plan offered by public and private entities. The term does not include an employer, including a self-insured employer, purchasing coverage or acting on behalf of its employees or the employees of one or more subsidiaries or affiliated corporations of the employer.

(6) "Health maintenance organization" means any person certified to operate a health maintenance organization by the commissioner pursuant to chapter 139 of Title 8.

(7) "Insured" means the beneficiary of a health care plan, including the subscriber and all others covered by the plan.

(8) "Managed care organization" means any financing mechanism or system that manages health care delivery for its members or subscribers, including health maintenance organizations and any other similar health care delivery system or organization.

(9) "Nonprofit hospital and medical service corporation" means a corporation organized under chapter 123 or 125 of Title 8.

(10) "Ordinary care" means, in the case of a health insurer, that degree of care that a health insurer of ordinary prudence would use under the same or similar circumstances. In the case of a person who is an employee, agent, ostensible agent, or representative of a health insurer, "ordinary care" means that degree of care that a person of ordinary prudence in the same profession, specialty, or area of practice as such person would use in the same or similar circumstances.

§ 5798. CIVIL ACTION; MEDICAL NEGLIGENCE

(a) A health insurer for a health care plan has the duty to exercise ordinary care when making health care treatment decisions and is liable for damages for harm to an insured proximately caused by its failure to exercise such ordinary care.

(b) A health insurer for a health care plan is also liable for damages for harm to an insured proximately caused by the health care treatment decisions made by its employees, agents, ostensible agents, or representatives who are acting on its behalf and over whom it has the right to exercise influence or control or has actually exercised influence or control which result in the failure to exercise ordinary care.

(c) It shall be a defense to any action asserted against a health insurer for a health care plan that:

(1) neither the health insurer, nor any employee, agent, ostensible agent, or representative for whose conduct such health insurer is liable under subsection (b) of this section controlled, influenced, or participated in the health care treatment decision;

(2) the health insurer did not deny or delay payment for any treatment prescribed or recommended by a provider to the insured; or

(3) the treatment prescribed or recommended by a provider to the insured is not covered by the health care plan of the insured.

(d) The standards established in subsections (a) and (b) of this section create no obligation on the part of the health insurer to provide to an insured treatment which is not covered by the health care plan of the health insurer.

(e) This chapter does not create any liability on the part of an employer, including a self-insured employer, or an employer group purchasing organization, that purchases coverage or assumes risk on behalf of its employees.

(f) Nothing in this section shall be construed to do any of the following:

(1) abrogate or limit any other theory of liability otherwise available at law;

(2) create any new or additional liability on the part of a health insurer for the sole medical negligence of a treating health care provider; or

(3) alter existing law with respect to the medical negligence of a treating health care provider.

(g) Nothing in any law of this state prohibiting a health insurer from practicing medicine or being licensed to practice medicine may be asserted as a defense by such health insurer in an action brought against it pursuant to this section or any other law.

(h) A health insurer may not remove a health care provider from its plan or refuse to renew a health care provider with its plan for advocating on behalf of an insured for appropriate and medically necessary health care for the insured.

(i) A health insurer may not enter into a contract with a health care provider or a health care facility which includes an indemnification or hold harmless clause for the acts, omissions or conduct of the health insurer. Any such indemnification or hold harmless clause in a contract in effect on the effective date of this section shall be unenforceable.

(j) A health insurer may not enter into a contract with an employer or an employer group purchasing organization which includes an indemnification or hold harmless clause for the acts, omissions or conduct of the health insurer. Any such indemnification or hold harmless clause in a contract in effect on the effective date of this section shall be unenforceable.

§ 5799. LIMITATIONS ON CAUSE OF ACTION

(a) A person may not maintain a cause of action under this subchapter against a health insurer unless the affected insured or the insured's representative:

(1) has exhausted the plan's utilization review and grievance requirements; and

(2) gives written notice of the claim and agrees to submit the claim to a review by an independent review organization on the request of the plan.

(b) If the insured has not complied with subsection (a) of this section, an action shall not be dismissed by the court, but the court may, in its discretion, order the parties to submit to an independent review or mediation or other nonbinding alternative dispute resolution and may abate the action for a period not to exceed 30 days for such purposes. Such orders shall be the sole remedy available to a party complaining of an insured's failure to comply with subsection (a) of this section.

(c) The insured is not required to comply with subsection (a) of this section if the insured has filed a pleading alleging that:

(1) harm to the insured has already occurred because of the conduct of the plan or because of an act or omission of an agent of the plan for whose conduct the plan is liable, and

(2) the review would not be beneficial to the insured, unless the court, upon motion by a defendant health insurer, finds after hearing, that such pleading was not made in good faith, in which case the court may enter an order pursuant to subsection (b) of this section.

(d) Nothing in this section shall prohibit an insured from pursuing other appropriate remedies, including injunctive relief, a declaratory judgment, or other relief available under law, if the requirement of exhausting the process for external review places the insured's health in serious jeopardy.

(e) Notwithstanding any other provision of law, actions under this chapter to recover damages for harm to an insured shall be brought within three years of the date of the health care treatment decision or two years from the date the harm is or reasonably should have been discovered, whichever occurs later, but not later than seven years from the date of the health care treatment decision.

(Committee vote: 6-0-0)

AMENDMENT TO S. 105 TO BE OFFERED BY SENATOR LEDDY

(b) If the insured has not complied with subsection (a) of this section, an action shall not be dismissed by the court, but the court may, in its discretion, order the parties to submit to an independent review or mediation or other nonbinding alternative dispute resolution and may abate the action for such period of time as the court determines is needed for such purposes. Such orders shall be the sole remedy available to a party complaining of an insured's failure to comply with subsection (a) of this section.

NEW BUSINESS

Third Reading

S. 47

An act relating to a commission on Alzheimer's disease and related disorders.

S. 62

An act relating to regulation of public assemblies.

S. 140

An act relating to the municipal employees' retirement system and a separate retirement group for public safety officers.

H. 446

An act relating to water commissioners.

H. 544

An act relating to transfers of balances of appropriations.

H. 555

An act relating to city of Barre charter.

Second Reading

Favorable with Proposal of Amendment

H. 16

An act relating to protection of self-directed retirement accounts.

Reported favorably with recommendation of proposal of amendment by Senator McCormack for the Committee on Judiciary.

. Exemptions under this subdivision shall not exceed $5,000.00 for the purpose of attachment of assets by the office of child support pursuant to 15 V.S.A. § 799;

(Committee Vote: 6-0-0)

(For House amendments, see House Journal for March 11, 1999, page 330.)

Joint House Resolution for Action

J.R.H. 95

NOTICE CALENDAR

Favorable

H. 302

An act relating to designating the state pie and the state fruit.

Reported favorably by Senator Bartlett for the Committee on Government Affairs and Housing.

(Committee vote: 6-0-0)

H. 451

An act relating to confidentiality of HIV reporting.

Reported favorably by Senator Munt for the Committee on Health and Welfare.

(Committee vote: 4-1-0)

J.R.S. 36

An act relating to reducing the risks of an accidental nuclear attack.

Reported favorably by Senator Ankeney for the Committee on Government Operations.

(Committee vote: 6-0-0)

Favorable with Recommendation of Amendment

S. 26

An act relating to alternative wastewater system standards, loans for system replacement, and amnesty for certain subdivision violations.

Reported favorably with recommendation of amendment by Senator Ready for the Committee on Natural Resources.

Sec. 1. AGENCY DEVELOPMENT OF ALTERNATIVE WASTEWATER DISPOSAL SYSTEMS

Within 18 months of the effective date of this act, the agency of natural resources shall complete the process of developing rules which would allow use of alternative technologies for the on-site disposal of wastewater. The rules shall be prepared pursuant to the public process established under 3 V.S.A. chapter 25, except that the final proposal shall be submitted to the general assembly for adoption, rather than to the committee on administrative rules. During the process of developing these rules, the agency shall solicit the input of people from diverse backgrounds and from people located throughout the state. No less frequently than every six months, the agency shall provide to the legislative Committees on Natural Resources and Energy an update on its progress in developing these rules and in incorporating public comment in rules development. The rules developed shall include, but shall not be limited to the following:

(1) prescriptive design flow standards for water and wastewater;

(2) design requirements, including isolation distances;

(3) monitoring and reporting requirements;

(4) soils and hydrogeologic requirements;

(5) requirements for engineering plans and specifications for potable water supplies and wastewater systems;

(6) provisions for the acceptance and approval of alternative technologies, based on performance evaluations provided by qualified organizations with expertise in wastewater systems, including the New England Interstate Water Pollution Control Commission;

(7) provisions allowing the use of a variety of alternative or innovative technologies, including intermittent sand filters, recirculating sand filters, waterless toilets and greywater disposal systems, and constructed wetlands, that provide the same degree of protection of human health and the environment as do the conventional technologies authorized by rule. When alternative technologies are approved for general use, the rules shall not require either a bond or the immediate construction of a duplicate wastewater system for those alternative technologies;

(8) provisions allowing for appropriate reductions in leachfield size or the depth to the seasonal high water table when alternative or innovative technologies are used and when those technologies provide a greater degree of wastewater treatment than conventional technologies;

(9) provisions allowing for the use of tight tanks as follows:

(A) as a remedial alternative, on a site where a conventional system has failed or where an existing system is expected to fail, and in either instance, where no other cost-feasible alternative is available; and

(B) as a special alternative, under the terms of section 1265a of Title 10;

(10) provisions describing the standards and requirements for the issuance of variances as a means of correcting failed systems, including provisions that require that the cost of the repair of failed systems be considered in addition to the potential impacts on human health and the environment;

(11) other requirements necessary to protect human health and the environment.

Sec. 2. SEPTIC TECHNOLOGY IMPACT STUDY

(b) The committee shall consist of the following: one member of the Senate, appointed by the Committee on Committees, one member of the House, appointed by the Speaker, the secretary of natural resources or a designee, the secretary of commerce and community affairs or a designee, and up to 12 persons appointed by the governor to represent: agricultural interests, home builders, engineers, the environmental community, the real estate sales industry, local governmental officials, land use planning organizations, property owners, and members of the general public.

(c) The committee shall solicit public comment from people located in the various regions of the state and shall report to the general assembly by no later than June 1, 2000 with alternatives, initiatives and recommendations with respect to the use of alternative technologies for on-site disposal of wastewater and land use impacts associated with them.

Sec. 3. 10 V.S.A. § 1954 is amended to read:

§ 1954. EXEMPTIONS

(a) The secretary shall not require permits under this chapter for the construction of potable water supply and wastewater facilities serving single family residences on their own individual lots, family day care, homes or existing mobile home parks exempt from permit review under section 6235*[(b)]* (a) of this title.

(b) When the construction or operation of a potable water supply *[comes within the jurisdiction of 18 V.S.A. chapter 24, the secretary shall not require a permit for that supply]* requires a permit under chapter 56 of this title, no permit shall be required under this chapter for that construction or operation.

* * *

(e) Farm wastewater system and potable water supplies.

(1) A wastewater system constructed exclusively for livestock or poultry production shall not require a permit under this chapter, provided that the wastewater system is operated in accordance with all applicable standards and guidelines established by the department of agriculture, food and markets.

(2) The following potable water supplies shall not require a permit under this chapter, provided that the potable water supply is operated in accordance with all applicable standards and guidelines established by the department of agriculture, food and markets:

(A) A potable water supply serving a farm structure, as that term is defined in 24 V.S.A. § 4495.

(B) A potable water supply serving a farm structure, as that term is defined in 24 V.S.A. § 4495, which is part of a commercial farming operation as "farming" is defined in 10 V.S.A. § 6001, and also serving any related farm dwelling.

(f) Single family residences which were modified to allow for an accessory use apartment shall not require a permit under this chapter, provided that all of the following apply:

(1) The accessory unit was occupied prior to January 1, 1999.

(2) Only one additional living unit was added to the existing structure.

(3) The exterior of the existing structure was not expanded.

(4) No significant modifications were made to the potable water supply or wastewater system.

(5) The existing wastewater system had not failed as of January 1, 1999.

(6) The existing potable water supply is tested and found to comply with drinking water standards for bacteria, lead, nitrate, sodium, and arsenic. A copy of the report shall be submitted to the secretary.

(7) There are no further significant modifications to the single family residence that affect the potable water supply or wastewater system.

Sec. 4. 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 and certain privately-owned failed wastewater treatment and disposal systems to bring those systems into compliance with federal and state standards and to protect public health.

Sec. 5. 24 V.S.A. § 4752(10) is added to read:

(10) "Privately-owned failed wastewater system" means a wastewater system that is a failed system, as failed system is defined in 18 V.S.A. § 1218, which:

(A) is not owned or operated by a municipality; and

(B) receives wastewater only from a residential housing unit or units.

Sec. 6. 24 V.S.A. chapter 120, subchapter 4 is added to read:

Subchapter 4. Private Loans for Wastewater Systems

§ 4780. APPLICABILITY

(a) Notwithstanding all other provisions of this chapter, the requirements of this subchapter shall apply to all loans made for the planning, design, acquisition of required permits, or for the construction of repairs, modifications, or replacements of privately-owned failed wastewater systems, including any other actions necessary to correct the failure.

(b) The provisions of this subchapter shall be used exclusively to establish a pilot program consisting of an allocation from the Vermont environmental protection agency pollution control revolving fund of up to $500,000.00 per year during the two-year period beginning July 1, 2000 and ending June 30, 2002. By January 15, 2002 the commissioner of environmental conservation shall report on the status of and activities under the pilot program to the house and senate committees on institutions and on natural resources and energy.

§ 4781. CONDITIONS OF LOANS

(a) The secretary may authorize the bond bank to make loans from the Vermont environmental protection agency (EPA) pollution control revolving fund, established under section 4753 of this title, to one or more state agencies or authorities without first requiring that the loan be secured by collateral.

(b) Any state agency or authority that receives a loan from the bond bank under this section may, in turn, make loans to qualified applicants for the planning, design, acquisition of required permits, or for the construction of repairs, modifications, or replacements of privately-owned failed wastewater systems, including any other actions necessary to correct the failure. All loans made to a state agency or authority are subject to the following conditions:

(1) The loan shall be evidenced by a note payable over a term not to exceed 20 years;

(2) The rate of interest charged for such loans shall be zero percent; and

(3) Repayment shall commence no later than two years after the date on which the loan agreement is executed.

§ 4782. QUALIFICATIONS FOR ELIGIBILITY; CERTIFICATION

No loan shall be made by a state agency or authority under this subchapter until the loan applicant has certified that all state and local permits necessary to undertake the actions for which financing has been sought have been issued or, in case no permit is required, the system has been reviewed and approved by the agency as a system that would be entitled to a permit or a permit with a variance, if a permit had been required.

§ 4783. LOAN PRIORITIES

Any state agency or authority making loans under this subchapter shall only award such loans for privately-owned wastewater systems serving persons with very low, low or moderate incomes. In addition, the state agency or authority shall give loans to eligible applicants based on the following, in descending order of priority:

(1) The need to abate an existing public health hazard.

(2) The need to eliminate a direct discharge to the waters of the state, including wetlands.

(3) The need to abate a potential public health hazard.

(4) The need to abate an existing or potential private health hazard.

§ 4784. INTERGOVERNMENTAL AGREEMENTS

The secretary, bond bank, and state agency or authority shall have the authority to enter into those intergovernmental agreements necessary to implement the provisions of this subchapter.

Sec. 7. FUNDING ASSISTANCE FOR VERY LOW, LOW, AND MODERATE INCOME PERSONS

By January 1, 2001, the secretary of natural resources and the secretary of commerce and community development shall establish a pilot funding program to assist in remediating failed wastewater systems, particularly those located in mobile home parks. The program shall be established from existing funding sources, using existing administrative systems, to provide low interest loans, deferred loans, and grants to individuals and to nonprofit housing providers, in order to benefit very low, low, and moderate income homeowners, particularly those residing in mobile home parks, by assisting in the repair or replacement of failed wastewater systems and, under certain circumstances, potable water supplies. The program will ensure that persons of low and very low income shall benefit from at least 50 percent of the funds available under this program.

Sec. 8. 18 V.S.A. § 1218(d) is added to read:

(d)(1) The following subdivided lots shall not require a permit under this section if the specified conditions are met:

(A) a subdivided lot which required a subdivision permit on which a building or structure and its associated potable water supply and wastewater disposal system was substantially constructed as of January 1, 1999 is exempt, provided that:

(i) the wastewater disposal system has not failed;

(ii) the lot is not subsequently subdivided;

(iii) there is no significant modification of the building or structure after January 1, 1999 that would increase design flows ;

(iv) there is no significant modification of the potable water supply or wastewater disposal system after January 1, 1999; and

(v) if a subdivision permit had been issued for the lot prior to January 1, 1999; the conditions of such permit concerning actions required to be taken after January 1, 1999 shall remain in effect. Such conditions include ones concerning operation and maintenance and transfer of ownership.

(B) a lot which was subdivided on or before January 1, 1999 which required a subdivision permit and which has not been developed through the construction of a building or structure is exempt, provided that the lot is not subsequently subdivided, and:

(i) prior to the construction of a building or structure on the lot, a subdivision permit is obtained, and

(ii) prior to the transfer ownership of the lot, unless a permit has been obtained by that time, the following language is inserted into the deed describing the affected property: "Notice of Permit Requirements. In order to comply with applicable state rules concerning potable water supplies and wastewater systems, a person shall not construct or erect any structure or building on the parcel of land described by this deed if the useful occupancy of that structure or building will require the installation of a potable water supply or wastewater system, without first complying with the applicable rules and, if necessary, obtaining the required permit. Any person who owns this property acknowledges that this parcel may not be able to meet state standards for a potable water supply or wastewater system and, therefore, this parcel may not be able to be developed."; and

(2) For the purposes of this subsection, the subdivision of land shall be deemed to occur upon the recording in the land records of a plat, plan or deed.

(3) For the purposes of this subsection, a wastewater disposal system has failed when the system is functioning in a manner:

(A) that allows wastewater to be exposed to the open air, pool on the surface of the ground, discharge directly to surface water, or back up into a building or structure, unless the approved design of the system specifically requires the system to function in such a manner;

(B) so that a potable water supply is contaminated or rendered not potable:

(C) that presents an imminent hazard to human health; or

(D) that presents a serious threat to the environment.

(4) If a wastewater disposal system benefiting from the limited amnesty granted under this subsection has failed, the owner of the system shall apply for and obtain a permit, and shall correct the failure in accordance with the permit. Permits issued under this subsection may include permits that include variance provisions if the failed wastewater disposal system cannot be modified or replaced in a way that enables the secretary to issue a permit that fully complies with the rules adopted under subsection (b) of this section. When approving a variance under this subsection, the secretary shall consider the cost of the modification or replacement of the system in addition to the potential impacts on human health and the environment.

Sec. 9. REPEAL

Sec. 10. CURATIVE EFFECT OF ACT

(a) If there is compliance with the conditions of the permit exemptions described in subsection 1218(d) of Title 18, the failure to obtain a subdivision permit under section 1218 and the failure to record such permit or comply with the requirements of such permit shall not constitute a violation that adversely affects the marketability of title under 27 V.S.A. chapter 5, subchapter 7.

(b) This subsection shall retroactively apply to these exempt properties.

(Committee vote: 5-1-0)

Reported favorably by Senator Ready for the Committee on Appropriations.

(Committee vote: 7-0-0)

Favorable with Proposal of Amendment

H. 351

An act relating to health insurance and chiropractic services.

Reported favorably with recommendation of proposal of amendment by Senator Morrissey for the Committee on Health and Welfare.

Sec. 1. 8 V.S.A. § 4088a is added to read:

§ 4088a. CHIROPRACTIC SERVICES

(b) As used in this section, "health insurance plan" means any individual or group health insurance policy, any hospital or medical service corporation or health maintenance organization subscriber contract or any other health benefit plan offered, issued or renewed for any person in this state by a health insurer, as defined by 18 V.S.A. § 9402(7). The term shall not include benefit plans providing coverage for specific disease or other limited benefit coverage.

Sec. 2. APPLICABILITY AND EFFECTIVE DATE

(Committee Vote: 6-0-0)

(For House amendments, see House Journal for March 17, 1999, page 359.)

H. 533

An act relating to capital appropriations and state bonding.

Reported favorably with recommendation of proposal of amendment by Senator Illuzzi for the Committee on Institutions.

(For text of Proposal of Amendment see Addendum to Senate Calendar for Thursday, April 15, 1999)

(Committee Vote: 6-0-0)

Reported favorably by Senator Spaulding for the Committee on Appropriations.

(Committee Vote: 6-0-1)

(For House amendments, see House Journal for 4/1/99, page 585 and 4/2/99, page 599.)

AMENDMENTS TO PROPOSALS OF AMENDMENT OF THE COMMITTEE ON INSTITUTIONS TO H. 533 TO BE OFFERED BY SENATOR ILLUZZI ON BEHALF OF THE COMMITTEE ON INSTITUTIONS

Senator Illuzzi on behalf of the Committee on Institutions moves to amend the proposals of amendment of the Committee on Institutions as follows:

First: In the First proposal of amendment, by striking the First proposal of amendment and inserting in lieu thereof a new First proposal of amendment as follows:

On page 1, after line 9, by adding the designations PART ONE and PART TWO, and three new Secs. 1, 1a, and 1b as follows:

PART ONE

ACTIVITIES FINANCED FROM THE GENERAL FUND

Sec. 1. CAPITAL PROJECTS; AUTHORIZATION

(a) The following capital projects are authorized to be undertaken with funds appropriated to the department of buildings and general services by the omnibus appropriations act of the 1999 session:

(1) A new medium security correctional facility, 350 beds, planning, design, site acquisition and construction.

(2) In Springfield, a community center or civic improvement project of similar size and magnitude as defined by the citizens of Springfield after a public input process, contingent on state approval of the project.

(3) In Springfield, community economic development improvements to the Jones and Lamson Plant One site, provided acceptable agreements can be made with the site owner; otherwise, state funds for the project shall be set aside and used, subject to approval by the agency of commerce and community development, for other economic development projects within the Town of Springfield, such as a project at the new industrial development site.

(b) None of the capital projects authorized by subsection (a) of this section shall commence until after voters of the Town of Springfield have authorized a state correctional facility to be located in the Town of Springfield. In addition, neither of the two capital projects authorized by subdivisions (2) and (3) of subsection (a) of this section shall commence until all permits have been obtained for a state correctional facility located in the Town of Springfield and the construction of such facility has begun.

Sec. 1a. LEGISLATIVE INTENT; NEW CORRECTIONAL FACILITY

It is the intent of the general assembly to:

(1) appropriate during the second half of the 1999-2000 legislative session approximately $6,000,000 for the new 350-bed correctional facility authorized by Sec. 1(a)(1) of this act, as a supplement to the appropriation authorized for this purpose by the omnibus appropriations act of the 1999 session; and

(2) finance the supplemental appropriation from proceeds of bonding authorized during the second half of the 1999-2000 legislative session.

PART TWO

ACTIVITIES FINANCED FROM BOND PROCEEDS

* * * Appropriation; New Correctional Facility * * *

Sec. 1b. CORRECTIONAL FACILITY

(a) The sum of $1,500,000 is appropriated to the department of buildings and general services for the new 350-bed correctional facility authorized by Sec. 1(a)(1) of this act, as a supplement to the appropriation for this purpose by the omnibus appropriations act of the 1999 session.

(b) Before the state purchases the property to be used as a site for the correctional facility:

(1) The property sellers shall produce documentation that the site has the following status on the state hazardous sites list and the federal Comprehensive Environmental Response Compensation and Liability Information System (CERCLIS):

(A) the state status shall be that site management action is completed (SMAC); and

(B) the federal status shall be that no further remedial action is planned (NFRAP).

(2) The commissioner of buildings and general services:

(A) shall identify the total cost to eliminate any threat from hazardous conditions of the site to the health of workers during construction of the correctional facility or to the health of inmates or staff occupying the facility; and

(B) shall receive approval from the joint fiscal committee to spend such amount to eliminate such health threat.

(c) The correctional facility constructed shall not exceed one story in height.

(Total Appropriation - Section 1b $1,500,000)

* * * Appropriations; Other Activities * * *

Second: In the Second proposal of amendment, Sec. 1d(h) (state buildings; dry hydrant grant requirements), following the last sentence and period, by adding the following: "An award may be advanced to an eligible applicant for the purpose of purchasing materials for a project prior to the completion of the project. The department of buildings and general services shall release to the Vermont Rural Fire Protection Task Force in one lump sum the entire amount appropriated by subsection (f) of this section."

Third: In the Second proposal of amendment, Sec. 1d(i) (state buildings; Senate Chamber), by striking the following: ", using a portion of the funds appropriated by subsection (a)(1) of this section", and by striking subdivision (1) and inserting in lieu thereof a new subdivision (1) as follows:

(1) Solicit from one or more carpet manufacturers at the manufacturers' expense one or more samples of a replacement floor carpet for the Senate Chamber, which may be patterned after the authentic c.1859 carpet.

Fourth: In the Fourth proposal of amendment, Sec. 2a, by striking Sec. 2a and inserting in lieu thereof a new Sec. 2a as follows:

Sec. 2a. REVIEW; FINANCIAL MANAGEMENT INFORMATION SYSTEM

(a) The chief information officer shall review the implementation of the new state government financial management information system (FMIS), and shall report on such review to the secretary of administration and to the general public. The chief information officer is authorized to retain an independent expert to assist with the review, and may for this purpose use not more than $100,000 from the appropriation of Sec. 2 of this act, which appropriation supplements previous appropriations for this multimillion dollar project. Such expert shall be independent of Vermont state government and of any private firm engaged by the executive branch to provide either goods or services for the FMIS implementation.

(b) The FMIS review shall include:

(1) Review, analysis and assessment of all aspects of the plan for and concrete actions taken in the FMIS implementation, including assessments of whether:

(A) the "core" FMIS will be ready to integrate budgeting and operational accounting from the beginning; and if not, how soon after implementation of the "core" will the budget function be in operation and reliable;

(B) the implementation is on schedule, including the likely actual date of completion;

(C) any elements of the request for proposal used in selecting an implementation firm are not in fact being implemented; and

(D) the legislature will gain access to the information it requires for its own fiscal analysis and policy making.

(2) Reports to the secretary of administration on the facts of the actual FMIS implementation, evaluations of the success or failure of the implementation, and recommendations for consideration by the secretary. The reports shall be public information. The chief information officer shall provide copies of all written reports to the secretary of administration, the state treasurer and the secretary of state.

(c) The FMIS expert retained shall have complete access to all correspondence and activities relevant to the FMIS implementation. The secretary of administration shall ensure that the expert shall receive copies of all correspondence and other written materials immediately upon their initial distribution.

Fifth: In the Fourth proposal of amendment, Sec. 3(c) (human services; assisted care facility), by striking subsection (c) in its entirety, and in the Sec. 3 summary, by striking the figure "$1,480,000" and inserting in lieu thereof the figure "$1,180,000"

Sixth: In the Sixth proposal of amendment, Sec. 5(a) (commerce and community development; historic sites), by striking the figure "$695,200" and inserting in lieu thereof the figure "$670,200"; in subdivision (a)(2)(A) (Southern Vermont College), by striking subdivision (A) in its entirety, by relettering the remaining subdivisions of subdivision (1) to be alphabetically correct, and in the Sec. 5 summary, by striking the figure "$845,200" and inserting in lieu thereof the figure "$820,200"

Seventh: In the Seventh proposal of amendment, Sec. 7(b) (education; study), by striking the following: "subsection (e)" and inserting in lieu thereof the following: "subdivision (a)(6)"

Eighth: In the Seventh proposal of amendment, Sec. 7 (education), subsections (c) (Albert Bridge School), (d) (Arlington School), (e) (Barnet School, (f) (Millers Run School), (g) (Rivendell Interstate School), and (h) (education department position reallocation), by striking in their entirety subsections (c), (d), (e), (f), (g), and (h)

Ninth: In the Ninth proposal of amendment, Sec. 10(b)(1) (natural resources; water supply), by striking subdivision (1) in its entirety and inserting in lieu thereof a new subdivision (1) as follows:

(1) Water supply; for potable water supply facilities

construction: 2,283,577.

in subsection (b)(2) (pollution control), by striking subdivision (2) in its entirety and inserting in lieu thereof a new subdivision (2) as follows:

(2) Pollution control; for water pollution control and combined sewer overflow facility construction: 6,326,330.

in subsection (c) (fish and wildlife game warden equipment), by striking subsection (c) in its entirety, by relettering the remaining subsections to be alphabetically correct, and in the Sec. 10 summary, by striking the figure "$9,013,907" and inserting in lieu thereof the figure "$9,379,907.

Tenth: In the Eleventh proposal of amendment, Sec. 13(a)(4) (public safety; Williston), by striking subdivision (4) in its entirety, and in the Sec. 13 summary, by striking the figure "$991,000" and inserting in lieu thereof the figure "$775,000"

Eleventh: In the Fourteenth proposal of amendment, Sec. 16(b)(1)(E) (municipal and nonprofit organizations), subsection (a)(1)(F) (Lincoln library), by striking the figure "$25,000" and inserting in lieu thereof the figure "$50,000", in subsection (b)(1)(C) (Brattleboro redevelopment) subdivision (ii), by striking out the second line in its entirety and inserting in lieu thereof the following: "the Robert H. Gibson Park and so", in subsection (b)(1)(E) (Community Health Center of Burlington), by striking subdivision (E) in its entirety and relettering the remaining subdivisions to be alphabetically correct, and in the summary total for Sec. 16, by striking the figure "$1,276,000" and inserting in lieu thereof the figure "$1,176,000"

Twelfth: In the Fifteenth proposal of amendment, Sec. 16a (call center), by striking Sec. 16a in its entirety

Thirteenth: In the Seventeenth proposal of amendment, Sec. 17(d) (reallocations; Native Americans), by striking the following: "for use by Wobanaki, Inc."

Fourteenth: In the Eighteenth proposal of amendment, Sec. 18 (tobacco settlement funds), by striking the Eighteenth proposal of amendment

Fifteenth: In the Nineteenth proposal of amendment, Sec. 19 (bonding authorization), by striking where it twice occurs the figure "$39,000,000" and inserting twice in lieu thereof the figure "$38,628,555"

Sixteenth: In the Twenty-second proposal of amendment, by striking the Twenty-second proposal of amendment and inserting in lieu thereof a new Twenty-second proposal of amendment as follows:

On page 21, Sec. 24, line 15, by striking Sec. 24 and inserting in lieu thereof the following:

Sec. 24. EXEMPTION FROM FEES

Notwithstanding any other provision of law to the contrary, all state and municipal agencies and their contractors or agents participating in the Swett-Comings Company building demolition in Richford authorized by this act shall be exempt from the payment of state tipping or other state fee or charge for solid waste landfill usage.

Seventeenth: In the Twenty-seventh proposal of amendment, Sec. 32b (state facilities security), § 171 of Title 29, before subdivision (a)(1) by adding a new subdivision (1) as follows:

(1) in those state-owned or state-leased buildings which house a court plus one or more other functions, security for the space occupied by the court shall be under the jurisdiction of the supreme court and security elsewhere shall be under the jurisdiction of the commissioner of buildings and general services;

and by renumbering the remaining subdivisions of subsection (a) to be numerically correct

Eighteenth: In the Twenty-seventh proposal of amendment, Sec. 32d (capitol police department), by striking Sec. 32d and inserting in lieu thereof a new Sec. 32d as follows:

Sec. 32d. 2 V.S.A. § 70 is added to read:

§ 70. CAPITOL POLICE DEPARTMENT

(a) Creation. A capitol police department is created within the office of the sergeant at arms. The sergeant at arms shall appoint and may remove, at his or her pleasure, individuals as capitol police officers, one of whom shall be appointed to serve as chief. All such positions shall be exempt state employees. The chief shall supervise the officer force under the direction of the sergeant at arms. Such appointments and all oaths or affirmations shall be in writing and filed with the sergeant at arms. An officer shall also serve as a deputy sergeant at arms and as a notary public pursuant to section 442 of

Title 24.

(b) Powers; training.

(1) Capitol police officers shall have all the same powers and authority as sheriffs and other law enforcement officers anywhere in the state, which shall include the authority to arrest persons and enforce the civil and criminal laws, keep the peace, provide security, and to serve civil and criminal process. For this purpose, capitol police officers shall subscribe to the same oaths required for sheriffs.

(2) Capitol police officers shall meet qualifications and training standards prescribed by the sergeant at arms, which may be equivalent to the full-time or part-time certification program provided to other law enforcement officers by the Vermont criminal justice training council (VCJTC). The VCJTC shall make training available to capitol police officers at no expense to the sergeant at arms, but shall not mandate their standards, training, or certification.

(c) Coordination of capitol complex security:

(1) The capitol police department shall have control within the State House, and may take law enforcement actions outside the State House as established by policy of the sergeant at arms, to protect the peace, dignity, and integrity of the State House. The capitol police department shall also be responsible for any special duties established by the sergeant at arms.

(2) In all other areas of the Capitol Complex, except the space occupied by the supreme court, the security and control of traffic and coordination of law enforcement activity shall be directed by the commissioner of buildings and general services.

Nineteenth: In the Twenty-eighth proposal of amendment, Sec. 34a (directional signs, Justin Morrill historic site), after the following: "in the town of Sharon," by inserting the following: "and", and by striking the following: ", and two signs at Exit 2 of I-89 in Sharon, one in the northbound lane and one in the southbound lane"

Twentieth: In the Thirty-first proposal of amendment, Sec. 34f (corrections; powers of the department), by striking Sec. 34f and inserting in lieu thereof a new Sec. 34f as follows:

Sec. 34f. 28 V.S.A. § 101 is amended to read:

§ 101. POWERS OF THE DEPARTMENT

The department is charged with the following powers:

* * *

(11) To notify when appropriate affected state, county and local criminal justice entities and local legislative bodies of offenders who are placed in the community. The notice may include the offender's name and any aliases, recent photograph and a physical description, community placement address, criminal history, current offense or offenses, and home address, plus a description and license number of any motor vehicle used by the offender, and the name, address and telephone number of the correctional entity supervising the offender. The commissioner shall develop rules to implement this provision.

Twenty-first: In the Thirty-third proposal of amendment, Sec. 34k (public water systems designation), by striking the Thirty-third proposal of amendment

Twenty-second: In the Thirty-fourth proposal of amendment, Sec. 34l (fish and wildlife fines and penalties; fund transfer) and Sec. 34m (fish and wildlife fines and penalties; schedule), by striking the Thirty-fourth proposal of amendment

Twenty-third: In the Thirty-fifth proposal of amendment, Sec. 34n (school construction bids), by striking the Thirty-fifth proposal of amendment

And by further amending the bill as follows:

First: On page 8, Sec. 9 (Vermont state colleges), lines 7 and 10, by striking the figure "$3,000,000" where it twice appears and inserting twice in lieu thereof the figure "$3,250,000"

Second: On page 20, Sec. 23(a) (grant acceptance), following line 10, by adding a new subdivision (2) as follows:

(2) The defender general may accept up to $150,000 in federal grant funds from the bureau of justice assistance of the U.S. Department of Justice to identify, assess, and accommodate developmental disabilities of persons who are assigned the services of the office of the defender general.

and by renumbering the remaining subdivisions to be numerically correct

Third: On page 26, following line 12, by adding a new Sec. 32f as follows:

Sec. 32f. 29 V.S.A. § 211 is amended to read:

§ 211. CITY-STATE COMMISSION

* * *

(c) Commission composition. The commission shall consist of eight members: The Vermont commissioner of buildings and general services; the chair of the senate institutions committee; the chair of the house institutions committee or his designee; the mayor of Montpelier; *[J. Paul Giuliani, a Montpelier resident; the chair of the Montpelier Conservation Commission, an entity which has been created by the Montpelier city council;]* the senior senator from Washington county; two individuals appointed by the Montpelier city council; and a person appointed by the chair of the senate institutions committee. The chair of the commission shall be the chair of the senate institutions committee. Legislative members of the commission shall be entitled to compensation and reimbursement pursuant to section 406 of Title 2.

Fourth: On page 34, Sec. 37, by striking Sec. 37 in its entirety and inserting in lieu thereof a new Sec. 37 as follows:

Sec. 37. RELATION OF SCHOOL CONSTRUCTION AMENDMENTS TO CERTAIN PROJECTS

Secs. 35 and 36 of this act shall take effect on July 1, 1999. However, in order to permit certain school districts to vote funds or authorize bonds prior to July 1, 1999 and nonetheless be eligible for school construction aid under the provisions of Sec. 35 of this act, the following provisions shall apply:

(1) The school districts of Georgia, Millers Run, St. Johnsbury, Sheldon, Thetford and Union High School District No. 27 (Bellows Falls Union High School) which have voted funds or authorized bonds for at least 70 percent of the costs of the project, and the project otherwise meets the requirements of section 3448 of Title 16, shall be eligible for capital construction aid in accordance with Sec. 35 of this act. The Arlington School District, the Rivendell Interstate School District, and any other school district which has been given pre-application approval and which may vote funds or authorize bonds for at least 70 percent of the costs of the project, and the project otherwise meets the requirements of section 3448 of Title 16, shall be eligible for school construction aid in accordance with Sec. 35 of this act.

(2) Notwithstanding subdivision 3448(a)(6) of Title 16 prior to its being stricken by Sec. 35 of this act, the Barnet School District may vote funds or authorize bonds prior to July 1, 1999 and proceed with construction to enable re-occupancy of its school building by September 1999, and any other related construction, and, if the project otherwise meets the requirements of section 3448 of Title 16, nonetheless be eligible for school construction aid in accordance with the provisions of Sec. 35 of this act.

(3) With respect to the Union 32 School District, and any other school district which has voted funds or authorized bonds for the total estimated cost of a construction project prior to July 1, 1999, the Vermont state board of education may grant approval of the construction project prior to July 1, 1999 if it otherwise meets the requirements of section 3448 of Title 16 and such project shall be eligible for school construction aid in accordance with Sec. 35 of this act, provided the project otherwise meets the requirements of section 3448 of Title 16.

PROPOSAL OF AMENDMENT TO H. 533 TO BE OFFERED BY SENATOR SEARS, ON BEHALF OF THE COMMITTEE ON JUDICIARY

Senator Sears, on behalf of the Committee on Judiciary, moves that the Senate propose to the House to amend the bill on page 37, following line 2, by adding a new Sec. 38b to read as follows:

Sec. 38b. STATE HOUSE GIFT SHOP; PILOT PROJECT

As a pilot project, the State House gift shop in operation when the general assembly is not in session, shall during the interim of the 1999-2000 session be located in the first floor cloak room, and none of the Senate committee rooms shall be used for gift shop storage or any other purpose related to the gift shop.

H. 548

An act relating to equal education opportunity omnibus act.

Reported favorably with recommendation of proposal of amendment by Senator Rivers for the Committee on Finance.

(For text of Proposal of Amendment, see Addendum to Senate Calendar for Thursday, April 29, 1999)

(Committee Vote: 6-1-0)

(For House amendments, see House Journal for March 26, 1999, page 462, and March 29, 1999, page 518.)

H. 549

An act relating to miscellaneous adjustments to the state, teachers and municipal retirement systems.

Reported favorably with recommendation of proposal of amendment by Senator Brownell for the Committee on Government Operations.

Sec. 14. 24 V.S.A. § 5070 is added to read:

§ 5070. DEFINED CONTRIBUTION RETIREMENT PLAN

The board may approve a defined contribution retirement plan for one or more groups of members. The plan shall qualify as a defined contribution plan under the United States Internal Revenue Code, as amended. Participation in a defined contribution plan offered under this section shall be in lieu of participation in any other plan established under this title.

(Committee Vote: 6-0-0)

(For House amendments, see House Journal for April 21, 1999, page 755.)

House Proposal of Amendment

S. 79

An act to prohibit discrimination on the basis of age, religion or disability in regard to unfair labor practices.

The House proposes to the Senate to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1. 3 V.S.A. § 961 is amended to read:

§ 961. EMPLOYERS

It shall be an unfair labor practice for an employer:

* * *

(2) To dominate or interfere with the formation or administration of any employee organization or contribute financial or other support to it; provided that an employer shall not be prohibited from permitting employees to confer with *[him]* the employer during working hours without loss of time or pay.

* * *

(4) To discharge or otherwise discriminate against an employee because *[he]* the employee has filed charges or complaints or given testimony under this chapter.

(5) To refuse to bargain collectively with representatives of *[his]* the employees subject to the provisions of subchapter 3 of this chapter.

(6) To discriminate against an employee on account of race, color, creed, religion, age, disability, sex, sexual orientation or national origin.

* * *

Sec. 2. 3 V.S.A. § 963 is amended to read:

§ 963. MEMBERSHIP; EMPLOYEES' RIGHTS

An employee organization entering into an agreement shall not:

(1) Discriminate against a person seeking or holding membership therein on account of race, color, creed, religion, age, disability, sex, sexual orientation or national origin.

* * *

Sec. 3. 3 V.S.A. § 1001 is amended to read:

§ 1001. GRIEVANCES; APPLICANTS AND EXCLUDED PERSONNEL

(a) Persons who are applicants for state employment in the classified service and classified employees in their initial probationary period and any extension or extensions thereof may appeal to the state labor relations board if they believe themselves discriminated against on account of their race, color, creed, religion, disability, sex, sexual orientation, age or national origin.

* * *

Sec. 4. 21 V.S.A. § 495 is amended to read

§ 495. UNLAWFUL EMPLOYMENT PRACTICE

(a) It shall be unlawful employment practice, except where a bona fide occupational qualification requires persons of a particular race, color, religion, national origin, sex, sexual orientation, ancestry, place of birth, age, or physical or mental condition:

(1) For any employer, employment agency or labor organization to discriminate against any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, place of birth, or age or against a qualified *[handicapped]* disabled individual;

(2) For any person seeking employees or for any employment agency or labor organization to cause to be printed, published or circulated any notice or advertisement relating to employment or membership indicating any preference, limitation, specification or discrimination based upon race, color, religion, ancestry, national origin, sex, sexual orientation, place of birth, age or *[handicapping condition]* disability;

(3) For any employment agency to fail or refuse to classify properly or refer for employment or to otherwise discriminate against any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, place of birth, or age or against a qualified *[handicapped]* disabled individual;

(4) For any labor organization, because of race, color, religion ancestry, national origin, sex, sexual orientation, place of birth, or age to discriminate against any individual or against a qualified *[handicapped]* disabled individual or to limit, segregate or qualify its membership;

* * *

Sec. 5. 21 V.S.A. § 495b(b) is amended to read:

(b) Any person aggrieved by a violation of the provisions of this subchapter may bring an action in superior court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney's fees and other appropriate relief.

Sec. 6. 21 V.S.A. § 1621 is amended to read:

§ 1621. UNFAIR LABOR PRACTICES

(a) It shall be an unfair labor practice for an employer:

* * *

(2) To dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it; provided that an employer shall not be prohibited from permitting employees to confer with *[him]* the employer during working hours without loss of time or pay.

* * *

(4) To discharge or otherwise discriminate against an employee because *[he]* the employee has filed charges or given testimony under this chapter.

(5) To refuse to bargain collectively with the representatives of *[his]* the employees subject to the provisions of section 1583 of this chapter.

(6) Nothing in this chapter or any other statute of this state shall preclude an employer from making an agreement with a labor organization (not established, maintained or assisted by any action defined in this subsection (a) as an unfair labor practice) to require as a condition of employment membership in such labor organization on or after the thirtieth day following the beginning of such employment or the effective date of such agreement, whichever is the later (i) if such labor organization is the representative of the employees as provided in section 1583 of this chapter, in the appropriate collective bargaining unit covered by such agreement when made and (ii) unless following an election held as provided in section 1584 of this chapter within one year preceding the effective date of such agreement, the board shall have certified that at least a majority of the employees eligible to vote in such election have voted to rescind the authority of such labor organization to make such an agreement. No employer shall justify any discrimination against an employee for nonmembership in a labor organization:

(A) If *[he]* the employer has reasonable grounds for believing that *[such]* membership was not available to the employee on the same terms and conditions generally applicable to other members, or

(B) If *[he]* the employer has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.

(7) To discriminate against an employee on account of race, color *[or creed]*, creed, religion, sex, sexual orientation, national origin, age or disability.

* * *

(b) It shall be an unfair labor practice for a labor organization or its agents:

* * *

(B) To restrain or coerce an employer in the selection of *[his]* representatives for the purposes of collective bargaining or adjustment of grievances.

(2) To cause or attempt to cause an employer to discriminate against an employee in violation of subdivision (a)(3) of this section or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground other than *[his]* the employee's failure to tender the periodic dues and the initiation fees uniformly required as a condition for acquiring or retaining membership.

(3) To refuse to bargain collectively with an employer, provided it is the representative of *[his]* the employees subject to the provisions of section 1583 of this title.

(4)(i) To engage in, or to induce or encourage any individual employed by any person to engage in, a strike or a refusal in the course of *[his]* employment to use, manufacture, process, transport or otherwise handle or work on any goods, articles, materials or commodities or to perform any services; or (ii) to threaten, coerce or restrain any person where in either case an object thereof is:

* * *

(B) Forcing or requiring any person to cease using, selling, handling, transporting or otherwise dealing in the products of any other producer, processor or manufacturer, or to cease doing business with any other person, or forcing or requiring any other employer to recognize or bargain with a labor organization as the representative of *[his]* employees unless such labor organization has been certified as the representative of such employees under the provisions of section 1581 of this title, but, this *[clause (B)]* subdivision shall not be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing.

(C) Forcing or requiring any employer to recognize or bargain with a particular labor organization as the employee's representative *[of his employees]* if another labor organization has been certified as the representative of those employees under section 1581 of this title.

(D) Forcing or requiring any employer to assign particular work to employees in a particular labor organization or in a particular trade, craft, or class rather than to employees in another labor organization or in another trade, craft, or class, unless such employer is failing to conform to an order or certification of the board determining the bargaining representative for employees performing such work. This subsection (b) shall not be construed to make unlawful a refusal by any person to enter upon the premises of any employer, other than *[his]* the person's own employer, if the employees of such employer are engaged in a strike ratified or approved by a representative of such employees whom the employer is required to recognize under this act. *[For the purposes of this subdivision (4) only, nothing contained in such]* Nothing in this subdivision shall be construed to prohibit publicity, other than picketing, for the purpose of truthfully advising the public, including consumers and members of a labor organization, that a product or products are produced by an employer with whom the labor organization has a primary dispute and are distributed by another employer, as long as such publicity does not have an effect of inducing any individual employed by any person other than the primary employer in the course of *[his]* employment to refuse to pick up, deliver, or transport any goods, or not to perform any services, at the establishment of the employer engaged in such distribution.

* * *

(7) To picket or cause to be picketed, or threaten to picket or cause to be picketed, any employer where an object thereof is forcing or requiring an employer to recognize or bargain with a labor organization as the employee's representative *[of his employees]*, or forcing or requiring the employees of an employer to accept or select the labor organization as their collective bargaining representative, unless the labor organization is currently certified as the representative of the employees;

(8) Compulsory membership; employees' rights. A labor organization entering into an agreement requiring a person's membership therein as a condition of *[his]* employment by the employer shall not:

(A) discriminate against a person seeking or holding membership therein on account of race, color, disability, religion, creed, sex, sexual orientation, age or national origin.

* * *

Sec. 7. 21 V.S.A. § 1726 is amended to read:

§ 1726. UNFAIR LABOR PRACTICES

(a) It shall be an unfair labor practice for an employer:

* * *

(2) To dominate or interfere with the formation or administration of any employee organization or contribute financial or other support to it; provided that an employer shall not be prohibited from permitting employees to confer with *[him]* the employer during working hours without loss of time or pay.

* * *

(4) To discharge or otherwise discriminate against an employee because *[he]* the employee has filed charges or complaints or given testimony under this chapter.

* * *

(7) To discriminate against an employee on account of race, color, religion, creed, sex, sexual orientation, national origin, disability, age or political affiliation.

(8) Nothing in this chapter or any other statute of this state shall preclude a municipal employer from making an agreement with the exclusive bargaining agent to require an agency service fee to be paid as a condition of employment, or to require as a condition of employment membership in such employee organization on or after the 30th day following the beginning of such employment or the effective date of such agreement, whichever is the later. No municipal employer shall discharge or discriminate against any employee for nonpayment of an agency service fee or for nonmembership in an employee organization:

(A) If *[he]* the employer has reasonable grounds for believing that *[such ]*membership was not available to the employee on the same terms and conditions generally applicable to other members; or

(B) If *[he]* the employer has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.

(b) It shall be an unfair labor practice for an employee organization or its agents:

* * *

(2) To restrain or coerce an employer in the selection of *[his]* representatives for the purposes of collective bargaining or adjustments of grievances.

* * *

(5) To engage in, or to induce or encourage any person to engage in a strike or a refusal in the course of *[his]* employment to use, transport or otherwise handle or work on any goods, articles, materials or commodities or to perform any services; or to threaten, coerce or restrain any person with the aim of forcing or requiring any employee to join any employee organization or forcing or requiring any person to cease doing business with any other person, in the course of regular municipal business.

* * *

(8) To picket or cause to be picketed, or threaten to picket or cause to be picketed, the municipal employer where an object thereof is forcing or requiring the municipal employer to recognize or bargain with an employee organization as the employees' representative *[of his employees]*, or forcing or requiring the employees of an employer to accept or select the employee organization as their collective bargaining representative.

(9) To discriminate against a person seeking or holding membership therein on account of race, color, religion, creed sex, sexual orientation, national origin, disability, age or political affiliation.

* * *

House Proposal of Amendment

S. 139

An act to increase the minimum wage.

The House proposes to the Senate to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1. 21 V.S.A. § 384(a) is amended to read:

(a) An employer shall not employ an employee at a rate less than *[$5.00 an hour and after June 30, 1997, at a rate less than $5.15 an hour and after September 30, 1997, at a rate less than]* $5.25 an hour, and after September 30, 1999, at a rate less than $5.75 an hour. If the minimum wage rate established by the United States government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the United States government.

Sec. 2. LIVABLE WAGE RATE STUDY COMMITTEE; REPORT

(a) A committee is created to study the issues related to minimum wage and providing livable compensation to Vermont wage earners and to submit a report to the General Assembly on or before December 17, 1999, outlining findings, conclusions and recommendations. The committee shall consist of 10 members: three members from the House Committee on General, Housing, and Military Affairs, one member each from the House Committee on Commerce and the House Committee on Health and Welfare appointed by the speaker; and three members from the Senate Committee on General Affairs and Housing and one member each from the Senate Committee on Finance and the Senate Committee on Health and Welfare appointed by the committee on committees. The members of the committee shall be entitled to compensation and reimbursement of expenses as provided in 2 V.S.A. § 406 for six meetings to be held during adjournment of the General Assembly, with the intention that at least one organization and planning meeting will be held before adjournment of the 1999 session. The committee shall have the assistance of the staff of the joint fiscal office, the legislative council and the departments of taxes, labor and industry, employment and training and social welfare. The committee shall also enlist the participation of Vermont business and labor organizations and other entities in gathering data and providing input. The committee may contract for additional professional research to provide data and analysis.

(b) The committee shall:

(1) Determine the amount of a minimum livable wage rate with recommendations for achieving it in a reasonable time, a system for maintaining a livable minimum wage in light of inflation and any other economic factors that may affect buying power.

(2) Consider the impact of a livable wage on public assistance payments and other employee benefits, including the cost to the state and employers of providing those benefits.

(3) Consider how wage increases may affect the economy and propose innovative methods to assure the economic viability of businesses if the minimum wage is increased.

(4) Consider the effects of the increasing use of temporary and part-time employees not receiving benefits.

(5) Consider the effect of multi-state employers on the ability of Vermont businesses to pay a living wage and be competitive.

(c) The Committee shall issue a report that includes, at a minimum, all the following:

(1) A profile, including age, gender, educational and training level and location of the full and part-time workers at various wage rate levels, beginning at minimum wage with 50-cent increments to a livable wage.

(2) A profile of the numbers, types and percentage of jobs that pay less than a livable wage. The profile shall include the types of businesses or occupations, the economic sector of these jobs, the turnover rate and the level of education and training required for each job.

(3) An analysis of how increased earnings might affect taxes and public assistance, including food stamps, LIHEAP, Dr. Dynasaur, TANF, Medicaid and any other relevant income-sensitive public assistance benefits.

(4) An analysis, using historic data available in Vermont and other states and countries, of the impact of minimum wage increases on the number of jobs, the buying power of workers, wage compression, costs of goods and services, business closures and growth, economic development and any other factors deemed relevant.

(5) A methodology to track, to the extent possible, the factors listed in subdivision (4) of this subsection to provide data for future policy making.

(6) Proposals for effective and realistic preferential policies, including procedures and criteria, for awarding state service contracts and state construction contracts to Vermont-based employers who pay all employees at livable wage rates.

(7) An analysis of the correlation between workforce training efforts and increased wages, including the impact on workers who participate in those training programs. This analysis shall integrate available data from the human resources investment council and other related data.

(8) Proposals for tax credit plans and other similar programs that would assist Vermont businesses to compete with multi-state companies as wages increase.

(9) A comparison of the cash value of employment to basic needs as identified in studies such as the Vermont Job Gap Study and an assessment of the availability, type and amount of public assistance that has been provided to low-wage workers during the past ten years and projected public assistance expenditures during the next five years.

(10) An analysis of the advisability of implementing a probationary, training or apprentice wage that is lower than the minimum wage and, if advisable, the rate and criteria of such a wage.

Sec. 3. APPROPRIATION

There is appropriated to the General Assembly from the general fund in FY 2000 the amount of $60,000.00 to effect the purposes of Sec. 2 of this act.

Sec. 4. EFFECTIVE DATE

This act shall take effect from passage.

House Proposal of Amendment to Senate Proposal of Amendment

H. 537

An act relating to the state's transportation capital program and project development plan.

The House proposes to the Senate to amend the Senate proposal of amendment as follows:

First: In the twelfth and thirteenth proposals of amendment, by striking "(#04088133001)" and inserting in lieu thereof the following: "(#0408813300)"

Second: In Sec. 11, by striking the second sentence

Third: In the seventeenth proposal of amendment, by striking after the word "Senate" the word "committee" and inserting in lieu thereof the following: "and House committees"

Fourth: In the twenty-fifth proposal of amendment, by adding a new subdivision (3) to read as follows:

(3) Third, of any remaining fund balance after subdivisions (1) and (2) of this section, up to $500,000 shall be appropriated to the agency of transportation project development program (account #0408811700) for the state paving program.

Fifth: In the thirty-fourth proposal of amendment, in Sec. 41k, by adding a period after the words "to the construction phase" and striking the remainder of the sentence

Sixth: By striking the thirty-fifth proposal of amendment

Seventh: In the thirty-seventh proposal of amendment, in Sec. 41o(c), by adding before the period in the first sentence, the following: "and the Senate and House committees on transportation" and in the third sentence, by striking after "Senate" the word "Committee" and inserting in lieu thereof "and House Committees"

Eighth: In the fortieth proposal of amendment, in Sec. 41s, by striking "1999" and inserting in lieu thereof "1998"

Ninth: In the forty-first proposal of amendment, by striking after the word "senate" the word "committee" and inserting in lieu thereof the words "and house committees"

Tenth: In the forty-forth proposal of amendment, by striking after the word "senate" the word "committee" and inserting in lieu thereof "and house committees"

Eleventh: In the forty-sixth proposal of amendment, by adding after the words "agency of transportation" the following: "policy and planning program (account #0408811906)"

Twelfth: By adding a new Sec. 41z to read:

Sec. 41z. POLICY FOR SUPPLEMENTAL GUIDE SIGNS

The Travel Information Council shall develop a policy for supplemental guide signs on the interstates and state highways and a plan for implementing the policy. The Travel Information Council shall report the policy and plan to the House and Senate Committees on Transportation on January 15, 2000.

Thirteenth: In the Senate thirtieth proposal of amendment, in Sec. 41 § 494(6), by striking the following: "for *[the]* people who are language delayed" and inserting in lieu thereof the following: for people with disabilities

CONFIRMATIONS

Glenn Gershaneck of Montpelier - Secretary of the Agency of Transportation - By Senator Mazza for the Committee on Transportation. (for 4/7)

Michael Dworkin of Montpelier - Chair of the Public Service Board - By Senator Rivers for the Committee on Finance. (for 4/8)

Leon C. Graves of Fairfield - Commissioner of the Department of Agriculture, Food and Markets -By Senator Kittell for the Committee on Agriculture. (for 4/14)

Thomas W. Torti of Essex - Commissioner of the Department of Buildings and General Services - By Senator Illuzzi for the Committee on Institutions. (for 4/21)

Theodore Lindgren of Springfield - Alternate Member of the Board of Parole - By Senator McCormack for the Committee on Institutions. (for 4/21)

Thomas Soules of Essex Junction - Member of the Parole Board - By Senator Mazza for the Committee on Institutions. (for 4/21)

Patricia A. McDonald of Berlin - Commissioner of the Department of Motor Vehicles - By Senator Ide for the Committee on Transportation. (for 4/26)

A. James Walton of Waterbury Center - Commissioner of the Department of Public Safety - By Senator Shumlin for the Committee on Transportation. (for 4/26)

Julie Bressor of Montpelier - Member of the Capitol Complex Commission By Senator Cummings for the Committee on Institutions. (for 4/28)

Arthur Rock, Jr. of South Burlington - Chair of the Transportation Board - By Senator Crowley for the Committee on Transportation. (for 4/28)

Nancy Price Graff of Montpelier - Member of the Board of Libraries - By Senator Kittell for the Committee on Education. (for 4/29)

David Larsen of Wilmington - Member of the State Board of Education - By Senator Chard for the Committee on Education. (for 4/29)

Laura Lewis of Guilford - Member of the Board of Libraries - By Senator Chard for the Committee on Education. (for 4/29)

Frank Mazza of Brandon - Member of the Board of Trustees of the Vermont State Colleges - By Senator Maynard for the Committee on Education. (for 4/29)

Deborah McDowell of Shelburne - Member of the State Board of Education - By Senator Ankeney for the Committee on Education. (for 4/29)

Joan Rahe of Bennington - Member of the Board of Libraries - By Senator Crowley for the Committee on Education. (for 4/29)

Barbara Taylor of Northfield - Member of the Board of Trustees of the Vermont State Colleges - By Senator Crowley for the Committee on Education. (4/29)

R. Marshall Witten of Bennington - Member of the Board of Trustees of the Vermont State Colleges - By Senator Chard for the Committee on Education. (for 4/29)

David S. Wolk of Mendon - Member of the Board of Trustees of the University of Vermont - By Senator Crowley for the Committee on Education. (for 4/29)

Gregory Brown of Montpelier - Commissioner of the Department of Housing and Community Affairs - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

Gregory Brown of Montpelier - Commissioner of the Department of Housing and Community Affairs - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

Emily Wadhams of Burlington - State Historic Preservation Officer - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

Robert Miller of Burlington - Commissioner of the Department of Economic Development - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

Steven Janson of Williston - Commissioner of the Department of Labor and Industry - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

Thomas Altemus of Montpelier - Commissioner of the Department of Tourism and Marketing - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

John Canney III of North Clarendon - Member of the Vermont Racing Commission - By Senator Bartlett for the Committee on General Affairs and Housing. (4/30)

John Gorczyk of Montpelier - Commissioner of the Department of Corrections - By Senator Illuzzi for the Committee on Institutions. (4/30)

Polly Billings of Woodstock - Member of the Capitol Complex Commission - By Senator McCormack for the Committee on Institutions. (4/30)

Dagyne Canney of North Clarendon - Alternate Member of the Board of Parole - By Senator Bloomer for the Committee on Institutions. (4/30)

TABLE OF CONTENTS

S. 70 Firearms litigation Third Reading 571

S. 105 HMO litigation Second Reading 571

S. 47 Alzheimer's Disease Third Reading 575

S. 62 Public Assemblies Third Reading 576

S. 140 Retirement Third Reading 576

H. 446 Water Comm. Third Reading 576

H. 544 Approp. Transfers Third Reading 576

H. 555 Barre Charter Third Reading 576

H. 16 IRA Exemptions Second Reading 576

J.R.H. 95 Honoring Blanche Moyse For Action 576

NOTICE CALENDAR

H. 302 State Pie & Fruit 577

H. 451 HIV reporting 577

J.R.S. 36 Accidental nuclear attack 577

S. 26 Alternative wastewater systems/amnesty 577

H. 351 Health Ins. & Chiropractic Services 585

H. 533 Capital Construction 586

H. 548 Equal Education Funding/Misc. Tax 596

H. 549 Retirement systems 596

S. 79 Discrimination House Prop. 596

S. 139 Minimum Wage House Prop. 603

H. 537 Transportation Bill House Prop. 605