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NO. 63. AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF GOVERNMENT.

(H.485)

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

Sec. 1. SHORT TITLE

   (a) This bill may be referred to as the BIG BILL - Fiscal Year 2002 Appropriations Act.

Sec. 2. PURPOSE

   (a) The purpose of this act is to provide appropriations for the operations of state government during fiscal year 2002. It is the express intent of the legislature that activities of the various agencies, departments, divisions, boards, and commissions be limited to those which can be supported by funds appropriated in this act or other acts passed prior to June 30, 2001. Agency and department heads are directed to implement staffing and service levels at the beginning of fiscal year 2002 so as to meet this condition unless otherwise directed by specific language in this act.

Sec. 3. APPROPRIATIONS

   (a) The sums herein stated are appropriated for the purposes specified in the following sections of this act. When no time is expressly stated during which any of the appropriations are to continue, the appropriations are declared to be single-year appropriations, and only for the purpose indicated. These appropriations shall be the only appropriations available, notwithstanding any other acts or laws. If in this act there is an error in either addition or subtraction, the totals shall be adjusted accordingly. Apparent errors in referring to section numbers of statutory titles within this act may be disregarded by the commissioner of finance and management.

Sec. 4. TIME AVAILABLE

   (a) The sums appropriated in this act, unless otherwise designated, shall be available only during the fiscal year ending June 30, 2002. The balance of any appropriations made in this act remaining unexpended and unencumbered at the end of the fiscal year shall revert to the appropriate fund balance unless otherwise specified in this act. Refunds of expenditures and reimbursements, except liability insurance premiums, which have been paid from the appropriations of a prior year, shall be credited to the appropriate fund and not to appropriation accounts in the current fiscal year, unless those refunds or reimbursements were previously paid from federal grants-in-aid or from appropriations whose unexpended balances are reappropriated by law. Refunds of liability insurance premiums paid in prior fiscal years are hereby available to reduce subsequent liability insurance premiums. Nothing contained in this act shall limit the time within which an appropriation to be raised by the issue of bonds may be expended.

Sec. 5. DEFINITIONS

   (a) For the purposes of this act:

(1) “Personal services” means wages and salaries, consulting services, personnel benefits, personal injury benefits under section 636 of Title 21 and similar items.

(2) “Operating expenses” means supplies - food, medical, clothing, educational, fuel, highway materials and similar items; contractual services - postage, telephone, travel expenses, light, heat and power, rentals, insurance and other similar items; equipment articles of substantial value which have a long period of usefulness - desks, computers, typewriters, furniture, motor vehicles and similar items.

(3) “Land, structures & improvements” means expenditures for the purchase of land, construction of new buildings and permanent improvements, highway construction and similar items.

(4) “Grants” means subsidies, aid or payments to local governments, to community and quasi-public agencies for providing local services, and to persons who are not wards of the state for services or supplies, and cash or other direct assistance, including pension contributions.

(5) “Encumbrances” means a portion of an appropriation reserved for the subsequent payment of existing purchase orders or contracts. The commissioner of finance and management shall make final decisions on the appropriateness of encumbrances.

Sec. 5a. FISCAL YEAR 2003 BUDGET PRESENTATION

   (a) By January 15, 2002, the secretary of administration shall ensure that each agency, department, division or office includes supplemental information so the following items are included with any budget documents submitted to support fiscal year 2003 appropriation requests.

(1) Detailed description of any consulting service expenses contained in any budget documents submitted for fiscal year 2003. Such detail should include fiscal year 2003 estimated cost, type of service, contractor name, start date, and end date.

(2) Detailed description of any grants included in form 14 or elsewhere that are estimated to be available to local, regional or statewide organizations. Such detail shall include fiscal year 2003 estimated grant amount, source of funds, grantee name and grantee location.

(3) Detailed description of any grants included in form 11 of budget documents or elsewhere that are estimated to be available to departments to support the budget in fiscal year 2003. Such detail shall include fiscal year 2003 grant amount, source of grant funds, a brief description of purpose and the time period for which the grant is available.

Sec. 6. SOURCE OF FUNDS

   (a) The appropriations made in this act are made for the fiscal year ending June 30, 2002, except as provided in this act, and are to be paid from funds shown as the source of funds.

Sec. 7. Secretary of administration - secretary’s office

Personal services729,637
Operating expenses59,136
Total788,773
Source of funds
General fund403,886
Transportation fund61,034
Federal funds84,469
Interdepartmental transfer239,384
Total788,773

   (a) The establishment of one (1) new classified position - Webmaster - is authorized in fiscal year 2002.

Sec. 8. Secretary of administration - GOVNet

Personal services442,819
Operating expenses1,247,181
Total1,690,000
Source of funds
Internal service funds1,690,000

Sec. 9. Finance and management - budget and management

Personal services701,198
Operating expenses57,275
Total758,473
Source of funds
General fund618,663
Transportation fund129,810
Interdepartmental transfer10,000
Total758,473

Sec. 10. Finance and management - financial operations

Personal services1,102,408
Operating expenses93,535
Total1,195,943
Source of funds
General fund716,440
Transportation fund350,080
Federal funds5,000
Special funds124,423
Total1,195,943

   (a) The establishment of one (1) new classified position - Information Technology Specialist II - is authorized in fiscal year 2002.

Sec. 11. Personnel - operations

Personal services2,329,784
Operating expenses632,906
Total2,962,690
Source of funds
General fund1,971,434
Transportation fund636,891
Special funds223,000
Internal service funds75,000
Interdepartmental transfer56,365
Total2,962,690

   (a) The establishment of one (1) new classified position - Paralegal Technician II - is authorized in fiscal year 2002.

Sec. 12. Personnel - employee benefits

Personal services786,045
Operating expenses259,330
Total1,045,375
Source of funds
Internal service funds1,045,375

Sec. 13. Buildings and general services - administrative

Personal services884,248
Operating expenses134,103
Total1,018,351
Source of funds
General fund454,101
Transportation fund65,203
Interdepartmental transfer499,047
Total1,018,351

Sec. 13a. PILOT FUNDING REQUIREMENT STUDY

(a) As part of the implementation of the fee for space program under Sec. 269 of Act 152 of the Acts of 2000, the secretary of administration and the commissioner of general services shall study the potential and develop a proposal, for consideration as part of the fiscal year 2003 budget for charges to agencies to reflect full PILOT obligations under section 3703 of Title 32. Specifically, the study shall consider a requirement that, over a four-year implementation period, payment in lieu of taxes under section 3703 of Title 32, which is allocable to the portion of state-owned property used by agencies and departments, shall be billed as space costs within agency budgets. The study shall have as a goal full recognition of PILOT costs in agency budgets by fiscal year 2007. A progress report on this study shall be presented to the joint fiscal committee at its September meeting.

Sec. 13b. SPECIAL COMMITTEE ON VERMONT DEPARTMENT OF BUILDINGS AND GENERAL SERVICES

(a) A special legislative committee on buildings and general services management operations is hereby established. Said committee shall consist of five members, one member each from the senate and house committees on appropriations and institutions, and the secretary of administration or her designee. The house members shall be appointed by the speaker of the house, and the senate members by the committee on committees. The committee shall remain in existence until January 1, 2002. The committee shall meet no more than four times to:

(1) Conduct a review of the department of buildings and general services management operations; including sources of funding, utilization of budgeted funds, bill payment practices;

(2) Assess the efficiency in building management and resource utilization as well as the process for assessing values of buildings that the state intends to purchase and the valuation for state-owned property;

(3) Develop standardized performance benchmarks.

(b) The staff of the joint fiscal committee, the legislative council, the commissioner of buildings and general services and the commissioner of finance and management shall provide assistance to the committee.

Sec. 14. Buildings and general services - facilities operations

Personal services5,799,014
Operating expenses6,566,915
Total12,365,929
Source of funds
General fund10,260,631
Transportation fund1,805,298
Interdepartmental transfer300,000
Total12,365,929

   (a) The following positions are authorized to replace ongoing contractual services. The establishment of twenty-nine (29) new classified positions - Building Custodian A - is authorized in fiscal year 2002.

Sec. 15. Buildings and general services - engineering

Personal services1,433,994
Operating expenses189,741
Total1,623,735
Source of funds
General fund1,464,859
Transportation fund93,876
Interdepartmental transfer65,000
Total1,623,735

Sec. 16. Buildings and general services - property management

Personal services683,901
Operating expenses3,179,090
Total3,862,991
Source of funds
Internal service funds3,862,991

Sec. 17. Buildings and general services - postal

Personal services541,531
Operating expenses375,203
Total916,734
Source of funds
General fund108,082
Transportation fund65,291
Internal service funds743,361
Total916,734

Sec. 18. Buildings and general services - supply center

Personal services222,497
Operating expenses263,751
Total486,248
Source of funds
Internal service funds486,248

Sec. 19. Buildings and general services - copy center

Personal services605,964
Operating expenses868,261
Total1,474,225
Source of funds
Internal service funds1,474,225

Sec. 20. Buildings and general services - purchasing

Personal services665,877
Operating expenses134,416
Total800,293
Source of funds
General fund540,229
Transportation fund260,064
Total800,293

Sec. 21. Buildings and general services - public records

Personal services672,259
Operating expenses202,969
Total875,228
Source of funds
General fund617,026
Transportation fund87,992
Special funds170,210
Total875,228

Sec. 22. Buildings and general services - communications & information technology

Personal services2,563,658
Operating expenses3,241,746
Total5,805,404
Source of funds
Internal service funds5,805,404

Sec. 23. Buildings and general services - state surplus property

Personal services42,351
Operating expenses38,957
Total81,308
Source of funds
Internal service funds81,308

Sec. 24. Buildings and general services - federal surplus property

Personal services39,485
Operating expenses88,951
Total128,436
Source of funds
Enterprise funds128,436

Sec. 25. Buildings and general services - workers’ compensation insurance

Personal services685,949
Operating expenses259,817
Total945,766
Source of funds
Internal service funds945,766

Sec. 26. Buildings and general services - general liability insurance

Personal services295,114
Operating expenses466,003
Total761,117
Source of funds
Internal service funds761,117

Sec. 27. Buildings and general services - all other insurance

Personal services28,880
Operating expenses21,048
Total49,928
Source of funds
Internal service funds49,928

Sec. 28. Buildings and general services - information centers

Personal services2,562,603
Operating expenses672,997
Grants255,000
Total3,490,600
Source of funds
General fund94,138
Transportation fund3,332,724
Special funds63,738
Total3,490,600

Sec. 29. Tax - administration/collection

Personal services9,299,907
Operating expenses2,331,700
Total11,631,607
Source of funds
General fund10,852,482
Transportation fund258,427
Special funds347,698
Tobacco funds58,000
Interdepartmental transfer115,000
Total11,631,607

(a) The establishment of one (1) new classified position – Examiner III – is authorized in fiscal year 2002.

Sec. 30. Libraries

Personal services1,718,485
Operating expenses1,127,342
Grants446,503
Total3,292,330
Source of funds
General fund2,022,117
Federal funds1,082,913
Special funds51,300
Interdepartmental transfer136,000
Total3,292,330

Sec. 31. Geographic information system

Grants376,992
Source of funds
Special funds376,992

Sec. 32. Auditor of accounts

Personal services1,396,008
Operating expenses115,252
Total1,511,260
Source of funds
General fund458,905
Transportation fund69,490
Special funds50,525
Internal service fund932,340
Total1,511,260

Sec. 33. State treasurer

Personal services2,043,046
Operating expenses334,276
Total2,377,322
Source of funds
General fund520,989
Transportation fund121,214
Special funds1,103,769
Expendable trust631,350
Total2,377,322

   (a) The establishment of one (1) new classified position - Program Services Clerk - is authorized in fiscal year 2002.

Sec. 34. Vermont state retirement system

Personal services14,198,400
Operating expenses129,115
Total14,327,515
Source of funds
Special funds14,327,515

Sec. 35. Municipal employees’ retirement system

Personal services956,000
Operating expenses43,848
Total999,848
Source of funds
Special funds999,848

Sec. 36. State labor relations board

Personal services152,911
Operating expenses23,540
Total176,451
Source of funds
General fund165,531
Transportation fund5,412
Special funds5,508
Total176,451

Sec. 37. Executive office

Personal services1,032,240
Operating expenses225,987
Grants51,978
Unrestricted fund13,000
Total1,323,205
Source of funds
General fund1,027,311
Transportation fund183,709
Special funds3,185
Interdepartmental transfer109,000
Total1,323,205

Sec. 38. Executive office - national and community service

Personal services172,171
Operating expenses95,855
Grants1,523,643
Total1,791,669
Source of funds
General fund61,403
Federal funds1,730,266
Total1,791,669

Sec. 39. VOSHA review board

Personal services28,403
Operating expenses4,020
Total32,423
Source of funds
General fund15,000
Federal funds17,423
Total32,423

Sec. 40. Use tax reimbursement fund - municipal current use

Grants4,750,000
Source of funds
General fund2,311,600
Transportation fund2,438,400
Total4,750,000

   (a) Notwithstanding section 3760 of Title 32, for fiscal year 2002 only, the current use reimbursement paid by the state to a municipality affected by Secs. 106e and 106f of Act 1 of 1999 for any parcel which was part of land in excess of 100,000 acres listed to a single owner on the 1998 statewide equalized education property tax grand list shall be calculated based upon the parcel’s 2001 tax year current use enrollment status.

(b) Notwithstanding any other provision of law, the balance of the appropriation made in Sec. 263b(d) of Act 62 of 1999 to the agency of natural resources for the proration of property taxes on the so-called “Champion Land” shall be available for transfer to the use tax reimbursement fund for payment in accordance with subsection (a) of this section in fiscal year 2002.

Sec. 40a. STUDY ON LAND USE IMPLICATIONS OF TAX POLICY

CHANGES

(a) The legislative council shall procure and manage consultant services to address and report back to the general assembly by January 15, 2002, with findings and recommendations with respect to the land use impacts that would occur from:

(1) Revisions to the current use program:

(A) to provide that the land use change tax be assessed with regard to the length of time the property has been enrolled in the program;

(B) to change the amount of the land use change tax;

(C) to eliminate the school tax on current use land or farm buildings.

(2) Expanding the size of the homestead in Act 60.

(b) The study shall examine the land use and public benefits implications of these tax policies, their equity and efficiency, whether they are consistent with each other, and the extent to which they are consistent with the goals of supporting productive use of farm and forest lands.

Sec. 41. Lieutenant governor

Personal services101,794
Operating expenses9,650
Total111,444
Source of funds
General fund89,400
Transportation fund22,044
Total111,444

Sec. 42. Legislature

Personal services2,605,030
Operating expenses1,869,900
Total4,474,930
Source of funds
General fund3,617,993
Transportation fund856,937
Total4,474,930

Sec. 43. Legislative council

Personal services1,635,449
Operating expenses18,842
Total1,654,291
Source of funds
General fund1,384,238
Transportation fund270,053
Total1,654,291

Sec. 44. Sergeant at arms

Personal services271,778
Operating expenses48,000
Total319,778
Source of funds
General fund271,935
Transportation fund47,843
Total319,778

   (a) The establishment of one (1) new exempt position - Capitol Security Officer - is authorized in fiscal year 2002.

Sec. 45. Joint fiscal committee

Personal services757,503
Operating expenses35,783
Total793,286
Source of funds
General fund634,915
Transportation fund158,371
Total793,286

Sec. 46. Lottery commission

Personal services1,008,812
Operating expenses734,900
Total1,743,712
Source of funds
Enterprise funds1,743,712

Sec. 47. Payments in lieu of taxes

Grants1,850,000
Source of funds
General fund1,450,000
Special funds400,000
Total1,850,000

   (a) The above appropriation is for state payments in lieu of property taxes under subchapter 4 of chapter 123 of Title 32 and said payments shall be calculated in addition to, and without regard to, the appropriations in Secs. 48 and 49 of this act.

   (b) Of the above general fund appropriation, $1,200,000.00 shall be considered a one-time appropriation.

Sec. 48. Payments in lieu of taxes - Montpelier

Grants184,000
Source of funds
General fund184,000

Sec. 49. Payments in lieu of taxes - correctional facilities

Grants40,000
Source of funds
General fund40,000

Sec. 50. Total general government95,689,610
Source of funds
General fund41,157,308
Transportation fund11,320,163
Federal funds2,920,071
Special funds18,247,711
Enterprise funds1,851,148
Expendable trust631,350
Internal service funds17,953,063
Tobacco funds58,000
Interdepartmental transfer1,529,796
Total95,689,610

Sec. 51. Protection to persons and property - Attorney general

Personal services4,265,712
Operating expenses612,492
Total4,878,204
Source of funds
General fund2,171,788
Transportation fund81,696
Federal funds460,000
Special funds902,978
Tobacco funds290,000
Interdepartmental transfer971,742
Total4,878,204

   (a) The following position is authorized to replace ongoing temporary services. The establishment of one (1) new classified position - Administrative Secretary - is authorized in fiscal year 2002.

   (b) The establishment of one (1) new exempt position - Assistant Attorney General - is authorized in fiscal year 2002.

Sec. 52. Vermont court diversion

Grants1,063,335
Source of funds
General fund615,531
Transportation fund177,804
Special funds270,000
Total1,063,335

Sec. 53. Center for crime victims services

Personal services545,000
Operating expenses205,000
Grants4,670,294
Total5,420,294
Source of funds
General fund753,379
Federal funds3,568,125
Special funds1,098,790
Total5,420,294

Sec. 54. State’s attorneys

Personal services6,657,340
Operating expenses863,583
Grants120,000
Total7,640,923
Source of funds
General fund5,381,074
Transportation fund436,856
Federal funds288,385
Special funds107,071
Interdepartmental transfer1,427,537
Total7,640,923

   (a) Of the above appropriation, $30,000.00 shall be used to support a half-time temporary Deputy State’s Attorney position in Orleans County.

Sec. 55. Sheriffs

Personal services2,137,669
Operating expenses243,947
Total2,381,616
Source of funds
General fund1,713,195
Transportation fund668,421
Total2,381,616

   (a) Of the above appropriation, $15,000.00 shall be transferred to the state’s attorneys office as reimbursement for the cost of the executive director’s salary.

Sec. 56. Defender general - public defense

Personal services4,761,822
Operating expenses440,724
Total5,202,546
Source of funds
General fund4,200,764
Transportation fund623,234
Federal funds40,500
Special funds338,048
Total5,202,546

Sec. 57. Defender general - assigned counsel

Personal services2,241,438
Operating expenses34,505
Total2,275,943
Source of funds
General fund2,015,937
Transportation fund260,006
Total2,275,943

   (a) The establishment of six (6) new exempt limited service positions – three (3) Assigned Counsel Serious Felony Defender and three (3) Assigned Counsel Serious Crime Defender Assistant – is authorized in fiscal year 2002.

Sec. 58. Military - administrative

Personal services369,212
Operating expenses227,101
Grants200,000
Total796,313
Source of funds
General fund796,313

   (a) Of the above appropriation, $200,000.00 shall be transferred to the Vermont student assistance corporation for the national guard scholarship program.

   (b) Total grants under 16 V.S.A. chapter 87, subchapter 4A shall not exceed $200,000.00 in fiscal year 2002, nor shall commitments or obligations be made for expenditure amounts above $200,000.00 in fiscal year 2003.

   (c) The Youth Challenge Academy Program shall not be started without legislative approval.

Sec. 59. Military - veterans’ affairs

Personal services108,322
Operating expenses21,265
Grants78,350
Total207,937
Source of funds
General fund207,937

Sec. 60. Military - army service contract

Personal services1,551,426
Operating expenses2,162,200
Total3,713,626
Source of funds
General fund129,827
Federal funds3,583,799
Total3,713,626

Sec. 61. Military - air service contract

Personal services2,791,776
Operating expenses706,473
Total3,498,249
Source of funds
General fund300,480
Federal funds3,197,769
Total3,498,249

Sec. 62. Military - building maintenance

Personal services817,685
Operating expenses412,953
Total1,230,638
Source of funds
General fund1,195,638
Special funds35,000
Total1,230,638

Sec. 63. Labor and industry

Personal services4,181,059
Operating expenses1,053,900
Grants26,850
Total5,261,809
Source of funds
General fund791,503
Federal funds525,109
Special funds3,895,197
Interdepartmental transfer50,000
Total5,261,809

   (a) The establishment of one (1) new classified position - Administrative Assistant A - is authorized in fiscal year 2002.

Sec. 64. Criminal justice training council

Personal services757,000
Operating expenses305,411
Total1,062,411
Source of funds
General fund150,255
Transportation fund346,281
Special funds444,675
Interdepartmental transfer121,200
Total1,062,411

Sec. 65. Liquor control - enforcement and licensing

Personal services1,346,283
Operating expenses302,475
Total1,648,758
Source of funds
Tobacco funds309,000
Enterprise funds1,339,758
Total1,648,758

Sec. 65a. 7 V.S.A. § 658(c) is amended to read:

(c) A person who violates subsection (a) of this section shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned not more than two years, or both. However, an employee of a *[second class]* licensee or an employee of a state-contracted liquor agency, who in the course of employment violates subdivision (a)(1) of this section:

(1) during a compliance check conducted by a law enforcement officer as defined in 20 V.S.A. § 2358: *[(1)]*(A) shall be assessed a civil penalty of not more than $100.00 for the first violation, and a civil penalty of not less than $100.00 nor more than $500.00 for a second violation that occurs more than one year after the first violation. *[(2)]*(B) shall be subject to the criminal penalties provided in this subsection for a second violation within a year of the first violation, and for a third or subsequent violation within three years of the first violation. *[(3)]*(2) may plead as an affirmative defense that:

(A) the purchaser exhibited and the employee carefully viewed photographic identification that complied with section 602 of this title and indicated the purchaser to be 21 or older; and

(B) an ordinary prudent person would believe the purchaser to be of legal age to make the purchase; and

(C) the sale was made in good faith, based upon the reasonable belief that the purchaser was of legal age to purchase alcoholic beverages.

Sec. 66. Liquor control - administration

Personal services1,548,720
Operating expenses709,536
Total2,258,256
Source of funds
Enterprise funds2,258,256

Sec. 67. Vermont racing commission

Personal services2,500
Operating expenses4,500
Total7,000
Source of funds
General fund7,000

Sec. 68. Secretary of state

Personal services2,396,258
Operating expenses788,650
Grants106,037
Total3,290,945
Source of funds
General fund504,676
Federal funds38,037
Special funds2,680,232
Interdepartmental transfer68,000
Total3,290,945

   (a) The establishment of one (1) new classified position - Account Clerk - is authorized in fiscal year 2002.

Sec. 69. Medical practice board

Personal services506,578
Operating expenses116,195
Total622,773
Source of funds
Special funds622,773

   (a) The following position is authorized to replace ongoing contractual services. The establishment of one (1) new classified position - Medical Licensing Board Field Investigator - is authorized in fiscal year 2002.

Sec. 70. Banking, insurance, securities, and health care administration - administration

Personal services642,471
Operating expenses35,000
Total677,471
Source of funds
Special funds677,471

   (a) The commissioner of the department of banking, insurance, securities, and health care administration shall submit reports in September 2001, and March 2002, to the secretary of administration and the joint fiscal committee on employee out-of-state travel. This report shall contain trips taken, purposes, costs incurred and source of funding.

Sec. 71. Banking, insurance, securities, and health care administration - banking

Personal services1,002,301
Operating expenses328,612
Total1,330,913
Source of funds
Special funds1,330,913

   (a) Notwithstanding 9 V.S.A. § 4230(b), in fiscal year 2002, the commissioner of banking, insurance, securities, and health care administration may transfer up to $200,000.00 from the securities regulation and supervision fund to the financial institutions supervision fund established in 8 V.S.A. § 504(d).

Sec. 72. Banking, insurance, securities, and health care administration - insurance

Personal services2,833,223
Operating expenses561,242
Total3,394,465
Source of funds
Special funds3,394,465

Sec. 73. Banking, insurance, securities, and health care administration - securities

Personal services462,753
Operating expenses133,150
Total595,903
Source of funds
Special funds595,903

Sec. 74. Banking, insurance, securities, and health care administration - captive

Personal services1,354,401
Operating expenses274,814
Total1,629,215
Source of funds
Special funds1,629,215

   (a) The establishment of two (2) new classified positions - one (1) Insurance Examiner II/III and one (1) Insurance Examiner-In-Charge - is authorized in fiscal year 2002.

Sec. 75. Banking, insurance, securities, and health care administration - health care administration

Personal services2,338,328
Operating expenses385,249
Total2,723,577
Source of funds
General fund562,148
Special funds2,161,429
Total2,723,577

Sec. 76. Public safety - state police

Personal services28,635,894
Operating expenses5,239,163
Grants1,881,030
Total35,756,087
Source of funds
General fund7,576,187
Transportation fund20,225,592
Federal funds3,449,666
Special funds2,697,252
Interdepartmental transfer1,807,390
Total35,756,087

   (a) The department of public safety shall provide business manager services for the Vermont criminal justice training council and for the Vermont fire service training council.

   (b) Of the above appropriation, $35,000.00 shall be available for statewide snowmobile law enforcement activities and $35,000.00 shall be available to the Southern Vermont wilderness search and rescue team, which is comprised of state police, department of fish and wildlife, county sheriffs and local law enforcement personnel in Bennington, Windham and Windsor counties, for snowmobile enforcement.

   (c) The establishment of one (1) new classified position - Accountant B - is authorized in fiscal year 2002.

Sec. 77. Public safety - criminal justice services

Personal services4,816,550
Operating expenses3,202,600
Grants4,559,466
Total12,578,616
Source of funds
General fund135,000
Transportation fund3,659,682
Federal funds7,243,792
Special funds966,898
Interdepartmental transfer573,244
Total12,578,616

   (a) The Vermont center for justice research is designated as the state’s instrumentality to receive statistical analysis center federal funds.

   (b) The establishment of one (1) new classified position - Information Technology Specialist II - is authorized in fiscal year 2002.

Sec. 78. Public safety - emergency management

Personal services910,068
Operating expenses682,360
Grants1,249,247
Total2,841,675
Source of funds
General fund93,930
Transportation fund63,969
Federal funds2,328,044
Special funds355,732
Total2,841,675

Sec. 79. Agriculture, food and markets - administration

Personal services610,945
Operating expenses98,450
Grants609,871
Total1,319,266
Source of funds
General fund877,830
Federal funds250,000
Special funds67,365
Interdepartmental transfer124,071
Total1,319,266

   (a) Of the above appropriation, $100,000.00 shall be transferred to the State’s Ratification Committee for the purpose of supporting reauthorization efforts of the New England Dairy Compact.

Sec. 80. Agriculture, food and markets - agriculture development

Personal services638,761
Operating expenses261,469
Grants155,842
Total1,056,072
Source of funds
General fund623,487
Special funds332,585
Interdepartmental transfer100,000
Total1,056,072

Sec. 81. Agriculture, food and markets - animal and dairy

Personal services1,368,070
Operating expenses248,238
Grants1,492
Total1,617,800
Source of funds
General fund1,035,872
Federal funds499,128
Special funds66,200
Interdepartmental transfer16,600
Total1,617,800

Sec. 82. [Omitted.]

Sec. 83. Agriculture, food and markets - plant industry, labs and consumer assurance

Personal services2,400,199
Operating expenses440,403
Total2,840,602
Source of funds
General fund983,875
Transportation fund45,013
Federal funds319,633
Special funds1,302,215
Interdepartmental transfer189,866
Total2,840,602

   (a) The establishment of two (2) new classified positions - one (1) Conservation Reserve Enhancement Program Coordinator and one (1) Plant Industry Agent - is authorized in fiscal year 2002.

Sec. 84. Agriculture, food and markets - state stipend

Grants175,000
Source of funds
General fund175,000

Sec. 85. Agriculture, food and markets - mosquito control

Grants90,000
Source of funds
Special funds90,000

Sec. 86. Public service - regulation and energy

Personal services4,221,216
Operating expenses700,626
Grants565,000
Total5,486,842
Source of funds
Federal funds1,230,500
Special funds4,231,342
Interdepartmental transfer25,000
Total5,486,842

   (a) The establishment of one (1) new classified position - Economics and Policy Analyst - is authorized in fiscal year 2002.

Sec. 87. Public service - purchase and sale of power

Personal services7,824
Operating expenses 365
Total8,189
Source of funds
Special funds8,189

Sec. 88. Enhanced 9-1-1 Board

Personal services2,103,853
Operating expenses254,633
Total2,358,486
Source of funds
Special funds2,358,486

Sec. 89. Public service board

Personal services2,158,763
Operating expenses290,000
Total2,448,763
Source of funds
Special funds2,448,763

Sec. 90. Judiciary

Personal services20,366,895
Operating expenses3,011,000
Total23,377,895
Source of funds
General fund17,290,775
Transportation fund3,565,620
Special funds420,000
Federal funds147,000
Interdepartmental transfer1,954,500
Total23,377,895

(a) The establishment of two new exempt limited service positions - one (1) Coordinator of Family Court Mediation Program and one (1) Guardian Ad Litem Coordinator - is authorized in fiscal year 2002.

(b) The establishment of two (2) new exempt positions - one (1) Clerk to the Board of Bar Examiners and one (1) Paralegal - is authorized in fiscal year 2002.

(c) The establishment of one (1) new exempt position - Trial Court Law Clerk - is authorized in fiscal year 2002.

(d) The establishment of two (2) new exempt positions - Security Officer - is authorized in fiscal year 2002.

(e) The establishment of one (1) new exempt position - Clerk - is authorized in fiscal year 2002.

(f) The establishment of two new exempt positions - one (1) Director of Family Court Services and one (1) Docket Clerk - is authorized in fiscal year 2002.

(g) There is established the Attorneys’ Admission, Licensing and Professional Responsibility Fund which shall be managed in accordance with Title 32, chapter 7, subchapter 5 of the Vermont Statutes Annotated. Fees collected for licensing of attorneys, administration of the bar exam, admitting attorneys to practice in Vermont, and administration of mandatory continuing legal education shall be deposited in and credited to this fund. This fund shall be available to the judicial branch to offset the cost of operating the professional responsibility board, the board of bar examiners, the judicial conduct board, the committee on character and fitness, and the mandatory continuing legal education program for attorneys.

Sec. 91. 4 V.S.A. § 71(a) is amended to read:

   (a) There shall be *[14]* 15 superior judges, whose terms of office shall, except in the case of an appointment to fill a vacancy or unexpired term, begin on April 1 in the year of their appointment or retention, and continue for six years.

Sec. 92. Human rights commission

Personal services286,104
Operating expenses74,125
Total360,229
Source of funds
General fund254,928
Federal funds105,300
Special funds1
Total360,229

Sec. 93. Vermont radiological emergency response plan fund

Personal services200,000
Operating expenses200,000
Total400,000
Source of funds
Special funds400,000

Sec. 94. Vermont fire service training council

Personal services631,557
Operating expenses206,747
Total838,304
Source of funds
General fund140,312
Transportation fund98,994
Federal funds105,000
Special funds363,160
Interdepartmental transfer130,838
Total838,304

Sec. 95. Total protection to persons and property156,366,946
Source of funds
General fund50,684,641
Transportation fund30,253,168
Federal funds27,379,787
Special funds36,292,348
Tobacco funds599,000
Enterprise funds3,598,014
Interdepartmental transfer7,559,988
Total156,366,946

Sec. 96. Human services - agency of human services - central office

Personal services3,519,193
Operating expenses946,481
Grants6,617,602
Total11,083,276
Source of funds
General fund3,963,424
Federal funds6,448,852
Special funds100,000
Tobacco funds125,000
Interdepartmental transfer446,000
Total11,083,276

   (a) Notwithstanding any other provisions of law, workers employed by persons who receive assistance from the agency of human services to procure attendant, personal care, or respite services or who utilize a qualified intermediary service organization providing services on behalf of the state shall not be considered state employees except for purposes of 21 V.S.A. chapter 17.

   (b) Notwithstanding any other provisions of law, the state may provide workers’ compensation coverage to workers employed by persons who receive assistance from the agency of human services to procure attendant, personal care, or respite services, and the state shall not be considered their employer. The state may also either permit a qualified intermediary service organization to purchase group insurance policies for persons served by their organization, or deem such persons to be members of an association and eligible for self-insurance under 21 V.S.A. § 687a for purposes of providing workers’ compensation. This provision is intended solely to reduce costs of providing workers’ compensation and shall not be considered for any other purpose.

(c) The secretary shall have direct oversight of all agreements or memoranda of understanding between the agency or any of its component departments and another component of state government. The secretary shall review all proposals by the agency or its component departments to modify, terminate or withdraw from such cooperative agreements or memoranda of understanding to assess whether the proposed change will have an adverse effect on other components of state government or upon the programs or activities which are the subject of the agreement or memoranda.

Sec. 97. 3 V.S.A. § 3026 is added to read:

§ 3026. PARTNERSHIPS FOR CHILDREN, FAMILIES AND INDIVIDUALS

(a) The secretary of human services, the commissioner of education, and the president of the University of Vermont shall establish a research partnership to study and make recommendations for improving the effectiveness of state and local health, human services, and education programs. Critical program outcomes relating to the well-being of Vermonters that should be addressed by the research partnership may include, without limitation, the following:

(1) Children, families and individuals are engaged in and contribute to their community’s decisions and activities.

(2) Pregnant woman and children thrive.

(3) Children are ready for school.

(4) Children succeed in school.

(5) Children live in stable, supported families.

(6) Youth choose healthy behaviors.

(7) Youth successfully transition to adulthood.

(8) Elders and people with disabilities live with dignity and independence in settings they prefer.

(9) Families and individuals live in safe and supportive communities.

(b) The secretary of human services and the commissioner of education shall collaborate with regional partnerships for children, families and individuals in each of the geographical regions of the state. Regional partnerships consist of citizens, consumers of health, human services and education programs, family members, governmental agencies and nongovernmental organizations providing health, education and human services, economic development representatives and business leaders, and any other individuals and groups who can contribute to the activities of the regional partnership. Regional partnerships shall develop and implement local strategies for improving the social well-being of Vermonters, and shall advise the agency of human services and the department of education concerning effective implementation of state and local health, human services, and education programs.

(c) The secretary of human services and the commissioner of education shall collaborate with the state team for children, families and individuals, consisting of representatives of the agencies and departments of state government which serve children, families and individuals, state coordinators of interagency teams, directors of private sector service and advocacy organizations, institutions of higher education, coordinators for the regional partnerships, and any other individual or group who can contribute to the activities of the state team. The state team shall support the activities of the regional partnerships, and participate in the development and implementation of state policies and programs designed to improve the well-being of Vermonters.

(d) Annually, on or before February 15, the secretary of human services, the commissioner of education, and the president of the University of Vermont shall report to the general assembly and the governor, concerning:

(1) the activities of the state, regional and research partnerships for children, families and individuals established under this section;

(2) the well-being of Vermonters;

(3) the results of any outcome research completed in the preceding calendar year; and

(4) any other findings or recommendations relating to improving the effectiveness of state and local health, human services, and education programs.

Sec. 98. Rate setting

Personal services594,288
Operating expenses58,970
Total653,258
Source of funds
Interdepartmental transfer653,258

Sec. 99. 33 V.S.A. § 904 is amended to read:

§ 904. RATE SETTING

   (a) The director shall establish by rule procedures for determining payment rates for care of state-assisted persons to nursing homes and to such other providers as the secretary shall direct. The secretary shall have the authority to establish rates that the secretary deems sufficient to ensure that the quality standards prescribed by section 7117 of this title are maintained, subject to the provisions of section 906 of this title. Beginning in state fiscal year 2003, the Medicaid budget for care of state-assisted persons in nursing homes shall employ an annual inflation factor which is reasonable and which adequately reflects economic conditions, in accordance with the provisions of Section 5.8 of the regulations promulgated by the division of rate setting (“Methods, Standards, and Principles for Establishing Medicaid Payment Rates for Long-Term Care Facilities”).

* * *

Sec. 99a. 33 V.S.A. § 1956 is amended to read:

§ 1956. HEALTH CARE TRUST FUND

* * *

(b) All monies received from or generated to the fund shall be used for the state portion of Medicaid expenditures and for administration of provisions of this subchapter under subsection 1952(c) of this title. Of the net revenues generated by the *[$1,534.25]* $2,768.69 per bed annual assessment on nursing homes, the net revenues generated $200.00 per bed shall be used for home- and community-based Medicaid waiver services and the net revenues generated by *[$534.25]* $1,768.69 per bed, less the total amount of the state share of the inflation factor adjustments for state fiscal year 2002, as calculated by the division of rate setting pursuant to subsection 905(c) of this title, shall be used solely for Medicaid nursing home reimbursement as follows:

      (1) Beginning on July 1, 1999, until such time as all cost categories have been rebased pursuant to section 905(c) of this title on a base year no earlier than *[2000]* 2002, wage supplements shall be paid on a schedule to be determined by the commissioner. Such supplements shall be based on the change in expenditures incurred on or after January 1, 1999, as determined by the division of rate setting, for wages, salaries and fringe benefits incurred by nursing homes for direct care staff and for other employee groups in nursing homes, other than owners and administrators (net expenditures). The division of rate setting shall annually calculate the net expenditures for each nursing home. Notwithstanding subsection 905(c) of this title or any other provision of law, the change of base year for any component of the nursing home payment rate shall not be made later than January 1, 2005.

* * *

   (e) The general assembly shall appropriate funds from the health care trust fund to the department of prevention, assistance, transition, and health access, the department of aging and disabilities, and the department of developmental and mental health services, and such funds shall be transferred to the departments’ Medicaid and administrative appropriations as requested by the departments to carry out the purposes of this subchapter.

Sec. 100. Human services board

Personal services223,161
Operating expenses16,972
Total240,133
Source of funds
General fund92,754
Federal funds111,836
Interdepartmental transfer35,543
Total240,133

Sec. 101. Corrections - administration

Personal services1,717,486
Operating expenses322,087
Grants3,506,298
Total5,545,871
Source of funds
General fund1,975,871
Federal funds3,550,000
Special funds20,000
Total5,545,871

Sec. 102. Corrections - parole board

Personal services213,735
Operating expenses70,555
Total284,290
Source of funds
General fund284,290

Sec. 103. Corrections - corrections services

Personal services47,644,756
Operating expenses24,670,716
Grants467,000
Total72,782,472
Source of funds
General fund70,362,241
Transportation fund1,402,578
Federal funds551,156
Special funds274,500
Interdepartmental transfer191,997
Total72,782,472

   (a) The following position is authorized to replace ongoing temporary services. The establishment of one (1) new classified position - District Office Clerk II - is authorized in fiscal year 2002.

   (b) Of the above general fund appropriation, $67,000.00 shall be used as a grant to Dismas House.

   (c) The commissioner shall ensure that any rental housing that is procured with funds appropriated to the department shall meet all health and safety standards. The rental rate paid by the department shall not exceed market rate for housing of similar location, size, condition and lease term. Each housing unit shall be inspected no less than annually by a community corrections superintendent or similar position to ensure the housing unit is in habitable condition.

Sec. 104. [Omitted.]

Sec. 105. Corrections - correctional facilities - recreation

Personal services306,762
Operating expenses226,900
Total533,662
Source of funds
Special funds533,662

Sec. 106. Corrections - correctional education

Personal services2,350,278
Operating expenses430,107
Total2,780,385
Source of funds
General fund2,362,743
Interdepartmental transfer417,642
Total2,780,385

   (a) The establishment of three (3) new classified positions - Correctional Instructor - is authorized in fiscal year 2002.

Sec. 107. Corrections - Vermont correctional industries

Personal services1,153,558
Operating expenses725,000
Total1,878,558
Source of funds
Internal service funds1,878,558

Sec. 108. Developmental disabilities council

Personal services102,515
Operating expenses35,558
Grants265,020
Total403,093
Source of funds
Federal funds403,093

Sec. 109. Health - administration and support

Personal services2,602,471
Operating expenses964,299
Total3,566,770
Source of funds
General fund1,350,003
Federal funds2,145,860
Special funds56,807
Interdepartmental transfer14,100
Total3,566,770

Sec. 110. Health - health protection

Personal services3,200,742
Operating expenses694,600
Grants147,200
Total4,042,542
Source of funds
General fund1,560,925
Federal funds1,241,362
Special funds903,500
Interdepartmental transfer336,755
Total4,042,542

Sec. 111. Health - health surveillance

Personal services5,278,618
Operating expenses1,686,525
Grants2,532,663
Total9,497,806
Source of funds
General fund3,614,389
Federal funds5,007,364
Special funds786,488
Interdepartmental transfer81,565
Expendable trust8,000
Total9,497,806

   (a) Of the above general fund appropriation, $300,000.00 shall be used for existing AIDS service organizations, peer-run AIDS organizations, and IMANI for direct client-based case management or directly related support services.

(b) Of the above federal fund appropriation, no less than $296,241.00 shall be used for existing AIDS service organizations, peer-run AIDS organizations and IMANI for direct client-based case management or directly related support services. The department shall follow federal guidelines and shall be advised by the newly convened HIV/AIDS Service Advisory Council (HASAC) for the purpose of prioritization of the use of these funds. Criteria shall be developed by the department in collaboration with the HASAC to govern situations when the department must select providers outside of the existing ASO network to receive part of this federal fund appropriation of $296,241.00 for the provision of specific services that cannot be provided by the ASO network.

(c) The grants in subsections (a) and (b) of this section to existing AIDS service organizations for case management services shall be awarded equitably on a per client basis and shall be used for services only, not administrative or other purposes. The method by which AIDS service organizations’ clients are counted shall be determined by mutual agreement of the department of health, and the AIDS service organizations.

Sec. 112. HIV/AIDS MEDICAL ASSISTANCE PROGRAM

   (a) Of the general fund appropriation in Sec. 111 of this act, $200,000.00 shall be used for all aspects of the HIV/AIDS medication assistance program (AMAP), including the costs of prescribed medications, related laboratory testing, nutritional supplements and maximum cost-effectiveness for the program.

   (b) The secretary of human services shall immediately notify the joint fiscal committee if, at any time, there are insufficient funds in AMAP to assist all eligible individuals. The secretary shall work in cooperation with the persons living with HIV/AIDS to develop a plan to continue access to AMAP medications until such time as the legislature can take action.

   (c) The secretary of human services shall convene an AMAP advisory committee comprised of no less than 50 percent members who are living with HIV. The committee shall make recommendations regarding the program’s formulary of approved medications, related laboratory testing, nutritional supplements and eligibility for the program.

Sec. 113. Health - health improvement

Personal services6,357,938
Operating expenses1,096,473
Grants8,664,405
Total16,118,816
Source of funds
General fund3,176,390
Federal funds7,817,825
Special funds801,101
Tobacco fund4,175,000
Interdepartmental transfer148,500
Total16,118,816

   (a) The department of health may carry forward any unspent portion of funds designated for health professional loan repayment. These funds may be used either alone or to match Federal National Health Service Corps loan repayment funds, local funds, or private funds, and shall be made available to primary care providers and licensed nurses who agree to practice for a prescribed period of time in the state, serving a portion of the state designated as a health professional shortage population, or other rural or underserved areas. Educational scholarships, loan repayment grants, loan deferment payments and payments of taxes due on the award may be considered for payment.

   (b) Of the above general fund appropriation, $300,000.00 is to support the Vermont coalition of clinics for the uninsured health care and dental services provided by clinics for uninsured individuals and families. The coalition shall report to the general assembly on or before January 1 of each year with a fiscal and program accounting of expenditures made with the monies appropriated by the general assembly.

   (c) Of the above tobacco fund appropriation in this section, the following shall be utilized according to the provision of chapter 225 of Title 18 as follows:

      (1) community-based activities - $1,100,000.00;

      (2) countermarketing - $1,000,000.00;

      (3) tobacco cessation programs - $1,275,000.00;

      (4) statewide programs - $200,000.00; and

      (5) fund surveillance and evaluation - $600,000.00.

Sec. 113a. 18 V.S.A. § 10 is added to read:

§ 10. EDUCATIONAL ASSISTANCE; INCENTIVES; NURSES

(a) A Vermont resident enrolled in an accredited registered nursing or licensed practical nursing program in Vermont, is eligible for a loan of up to $6,000.00 per year, provided:

(1) graduation from the program will result in eligibility to sit for the NCLEX-RN nursing examination in the case of a registered nurse or the NCLEX-PN in the case of a licensed practical nurse; and

(2) the student is enrolled as a full-time student in the program.

(b) The amount of up to $6,000.00 of a loan awarded under this section shall be cancelled and forgiven for each year the student is employed as a registered nurse or licensed practical nurse. Eligibility for this program shall be determined by the Area Health Education Center (AHEC). The commissioner may require certification of compliance with this subsection prior to forgiving all or a portion of the loan.

(c) The commissioner shall award up to $6,000.00 per year for up to four years, to any licensed registered nurse or practical nurse who has not received or is not eligible to receive loan forgiveness under subsection (b) of this section, for each year the nurse is employed as a registered or practical nurse. Eligibility for this program shall be determined by AHEC. The commissioner may require certification of compliance with this subsection prior to making an award.

(d) In any year in which the commissioner does not have sufficient funds to carry out the provisions of this section, the commissioner shall use funds appropriated first to provide loans and loan forgiveness pursuant to subsections (a) and (b) of this section. Remaining funds shall be used to provide awards pursuant to subsection (c) of this section, giving priority to those nurses serving in an undersupplied nursing specialty or in a geographic area of Vermont which is underserved.

(e) This program shall apply to registered nurses or licensed practical nurses who have graduated on or after April 1, 2001.

(f) This section shall be repealed effective June 30, 2005.

Sec. 114. Health - community public health

Personal services9,535,600
Operating expenses1,429,261
Grants11,305,521
Total22,270,382
Source of funds
General fund4,275,576
Federal funds17,464,045
Special funds406,800
Interdepartmental transfer123,961
Total22,270,382

Sec. 115. Health - alcohol and drug abuse programs

Personal services2,246,994
Operating expenses494,959
Grants10,512,081
Total13,254,034
Source of funds
General fund3,809,406
Federal funds7,709,128
Special funds650,500
Tobacco funds1,075,000
Interdepartmental transfer10,000
Total13,254,034

   (a) Of the above appropriation, Maple Leaf Farm shall be reimbursed for Medicaid and uninsured (ADAP grant) at a combined rate of $157.00 per day for primary and residential care. On or before February 1, 2002, Maple Leaf Farm shall submit a report to the house and senate committees on appropriations setting forth the percentage of utilization of the primary care unit by both primary care unit patients and residential care unit patients, and an assessment of the need for the primary care unit.

(b) For the purpose of meeting need for outpatient substance abuse services when the preferred provider system has a waiting list of five days or more, or there is a lack of qualified clinicians to provide services in a region of the state, a state-qualified alcohol and drug counselor may apply to the department of health’s division of alcohol and drug abuse programs for time-limited authorization to participate as a Medicaid provider to deliver clinical and case coordination services as authorized.

(c) Of the above tobacco fund appropriation, $500,000.00 shall be granted for opiate treatment programs.

Sec. 115a. OPIATE ADDICTION TREATMENT

(a) Notwithstanding the provisions of 18 V.S.A. § 4702(b)(7), the commissioner of health may approve up to five opiate addiction treatment programs operated by, and located outside of a hospital or medical school, after consideration of the space requirements and space availability at the hospital or medical school, provided that the program is located in a multi-use building, so that the purpose for which a person is entering or leaving the building is not obvious. Programs approved by the commissioner shall be located in close proximity to other medical and social services and shall not be geographically located in isolated community settings.

Sec. 115b. COST-BASED REIMBURSEMENT FOR OPIATE ADDICTION TREATMENT PROGRAMS

(a) The commissioner shall establish, after conducting negotiations with hospitals and medical schools, reasonable cost-based reimbursement rates for opiate addiction treatment programs authorized by 18 V.S.A. chapter 92.

Sec. 116. COMMISSION ON TOBACCO, ALCOHOL AND SUBSTANCE ABUSE ADDICTION

(a) The commission on tobacco, alcohol and substance abuse addiction is created for the purpose of studying and making recommendations for the development of a coordinated, effective and adequately funded system for preventing tobacco, alcohol and substance abuse addiction and treating such addictions, when they occur, in a humane, caring and effective manner.

(b) The commission shall consist of the following 16 members or their designees:

(1) the commissioner of health;

(2) the director of the office of alcohol and drug abuse programs;

(3) the director of tobacco control programs;

(4) the commissioner of social and rehabilitation services;

(5) the commissioner of public safety;

(6) a representative of local law enforcement selected by the Vermont Chiefs of Police Association;

(7) the chair of the Vermont tobacco evaluation and review board;

(8) the commissioner of corrections;

(9) the commissioner of education;

(10) a representative of a community-based prevention program appointed by the governor; and

(11) six legislative members, including three members from the House appointed by the Speaker of the House and three members of the Senate appointed by the Committee on Committees. Members appointed from each body shall not be all of the same political party. The chair of the commission shall be a legislator elected by the six legislative members.

(c) The commission shall have the assistance and cooperation of all agencies and instrumentalities of the state, which shall provide to the commission such information and analysis as the commission determines is necessary for the performance of its duties, subject to applicable laws of privilege and confidentiality. The commission may meet for no more than eight meetings or public hearings, and shall have such powers as are needed to carry out the purposes of this section.

(d) The legislative council and the joint fiscal office shall provide professional and administrative support for the committee. Legislative members shall be entitled to per diem compensation and reimbursement of expenses in accordance with 2 V.S.A. § 406. Members who do not represent governmental agencies shall be entitled to per diem compensation and reimbursement of expenses in accordance with 32 V.S.A. § 1010.

(e) The commission shall report its findings and recommendations to the governor and the general assembly on or before November 1, 2001, whereupon it shall cease to exist. The report shall:

(1) identify existing agencies and instrumentalities of the state and nongovernmental organizations engaged in preventing and treating tobacco, alcohol and substance abuse addiction, together with the programs, the personnel, and the financial resources and funding sources of such entities;

(2) consider how to coordinate and make the most effective use of Vermont’s resources allocated to addressing tobacco, alcohol and substance abuse addiction, including consideration of whether any organizational restructuring should take place;

(3) recommend whether tobacco trust fund monies should be spent to address alcohol and substance abuse addiction as well as tobacco prevention, cessation and control activities;

(4) make recommendations for the development of a coordinated, effective and adequately funded system for preventing and treating tobacco, alcohol and substance abuse addiction;

(5) include legislative and fiscal proposals to implement the commission findings and recommendations; and

(6) make such other findings and recommendations necessary to carry out the purposes of this section.

(f) In developing its recommendations, the commission shall include as specific goals: strategies and measurable actions directed at preventing and reducing the incidence of tobacco, alcohol and substance abuse; strategies and actions directed at interdicting the sale and distribution of illegal substances, including alcohol and tobacco, for underage users; and strategies and the development of effective treatment techniques and programs which recognize the myriad factors and variables essential to effective treatment and rehabilitation. In its deliberations, the commission shall recognize that prevention, enforcement and treatment services must meet the needs of the abusers, family and community, and that the structure and organization of tobacco, alcohol and substance abuse programs must reflect what is essential to meet these goals.

Secs. 117-119. [Omitted.]

Sec. 120. Prevention, assistance, transition, and health access - administration

Personal services28,271,044
Operating expenses12,695,541
Grants6,140,470
Total47,107,055
Source of funds
General fund14,577,976
Federal funds28,744,393
Special funds3,784,686
Total47,107,055

Sec. 121. Prevention, assistance, transition, and health access - Reach Up

Grants36,637,653
Source of funds
General fund15,542,899
Federal funds18,894,754
Special funds2,200,000
Total36,637,653

   (a) An 18-year-old dependent child who is a full-time student in a secondary school, or attending an equivalent level of vocational or technical training, and reasonably expected to complete the program before reaching age 19 or not expected to complete the program before reaching age 19 solely due to a documented disability, may remain on the Reach Up grant. Coverage of disabled 18 year olds shall remain in effect for so long as required by court decision.

Sec. 122. Prevention, assistance, transition, and health access - aid to aged, blind and disabled

Grants9,574,128
Source of funds
General fund9,574,128

Sec. 123. Prevention, assistance, transition, and health access - Medicaid

Grants444,656,748
Source of funds
General fund81,736,536
Federal funds278,959,202
Special funds66,711,010
Tobacco fund17,250,000
Total444,656,748

   (a) HIV/AIDS health insurance assistance program.

      (1) The department of prevention, assistance, transition, and health access, in cooperation with the department of health, shall operate an HIV/AIDS insurance assistance program.

      (2) The program shall pay all or a portion of continuation health insurance premiums for those eligible individuals with HIV/AIDS for whom it can be determined that continuation of private insurance coverage is less costly to the state than other alternatives.

      (3) Eligibility for this program shall be limited to individuals whose household income does not exceed 200 percent of the federal poverty level, after deducting unreimbursed medical expenses and health insurance premiums from gross income, and whose assets, exclusive of the primary residence and certain other exclusions to be defined by the department of prevention, assistance, transition, and health access, do not exceed $10,000.00.

      (4) Expenditures under this program shall not exceed $55,000.00 in fiscal year 2002.

   (b) Subject to approval by the federal Health Care Financing Administration, the department of prevention, assistance, transition, and health access is authorized to amend the rules for the Medicaid and VHAP-Pharmacy programs to require beneficiaries to pay a copayment of $3.00 per prescription or a refill on prescriptions whose cost is equal to or exceeds $50.00.

(c) Subject to approval by the federal Health Care Financing Administration, the department of prevention, assistance, transition, and health access is authorized to amend the rules for the Medicaid and VHAP programs to require beneficiaries enrolled in managed care to pay authorized copayments for pharmacy services.

   (d) Notwithstanding Sec. 12 of No. 14 of the Acts of 1995, the department of prevention, assistance, transition, and health access is authorized to amend the rules for the VScript program to require, for beneficiaries whose household income exceeds 150 percent of the federal poverty level and is less than or equal to 175 percent of the federal poverty level a copayment of $2.00 for prescriptions costing $29.99 or less and $4.00 for prescriptions costing $30.00 or more. Implementation of these requirements is subject to approval by the federal Health Care Financing Administration.

   (e) Subject to approval by the federal Health Care Financing Administration, the department of prevention, assistance, transition, and health access is authorized to amend the benefit plan for the VHAP program to eliminate coverage of dental services.

(f) At least $850,730 of the above appropriation shall be used to target payments to procedure codes to increase rates up to 85 percent of Medicare level. This shall be done in consultation with the Vermont medical society physician bargaining group and shall take into consideration: (1) codes with the greatest differential between Medicare and Medicaid; and (2) the volume of services provided.

   (g) The Medicaid inpatient per diem rate shall be increased to the peer group median for any Vermont hospital that is at a competitive disadvantage, as determined by the commissioner, with a hospital in the same peer group and with a similar service mix that is situated within ten miles from the Vermont border and less than 18 miles from the Vermont hospital.

(h)(1) In addition to any other inflationary increases, $1,345,000.00 of the above appropriation shall be used to increase reimbursement for hospitals and other health care providers as defined in subdivision 9402(6) of Title 18. These funds shall be allocated as follows: 44 percent to hospitals, of which the initial portion shall be to fulfil the requirements of subsection (g) above; 34 percent for physicians; five percent for dentists; and 17 percent for other providers.

   (2) During fiscal year 2002, increased Medicaid payments made to hospitals under this section shall be used to promote appropriate utilization of services, increased efficiencies, and other quality improvements provided to Medicaid beneficiaries. The department of PATH shall collaborate with the Vermont Association of Hospitals and Health Systems and the Vermont Program for Quality in Health Care in determining the programs and facilities that best qualify for such payments

(i) PATH is instructed to file for an amendment to its Medicaid waiver to allow for additional payments to providers to eliminate cost shifting.

(j) The rules for Medicaid payments for nursing homes shall be amended, effective July 1, 2001, to raise the limit on recognition of base year indirect per diem costs to 137 percent of the median of base year indirect per diem costs of all private nursing homes participating in the Vermont Medicaid program, for hospital-based nursing homes that meet all the following criteria on the date of passage of this act: (1) are physically integrated as part of a hospital building with at least one common wall and direct internal access between the hospital and the nursing home; (2) are part of a single corporation that governs both the hospital and the nursing home; and (3) file one Medicare cost report for both the hospital and the nursing home.

(k) Notwithstanding any other provisions of law, the rule change in subsection (j) of this section shall be adopted as soon as practicable after passage of this act and shall be exempt from the procedural requirements of

3 V.S.A. chapter 25, except that the agency of human services shall make reasonable efforts to ensure that the change is made known to persons who may be affected by it.

(l) In addition to any other inflationary increase or other reimbursement rate increases, $750,000.00 of the above appropriation shall be used to institute a supplemental dental bonus program based proportionately on the level of participation of dental practices enrolled in the Medicaid program. The bonus program shall be submitted to the joint fiscal committee by July 1, 2001. The department shall report to the general assembly by January 2002 with recommendations for increasing dental reimbursements to market levels over the next three years.

(m) The commissioner of the department of PATH shall conduct a study to determine if the addition of the $750,000.00 in subsection (l) of this section resulted in increased access to dental services for Medicaid patients. The study shall be submitted to the House and Senate committees on appropriations by January 15, 2003.

(n)(1) The commissioner of prevention, assistance, transition, and health access shall establish a pharmacy best practices and cost control program designed to reduce the cost of providing prescription drugs, while maintaining high quality in prescription drug therapies. The program shall include a preferred list of covered prescription drugs that identifies preferred choices within therapeutic classes for particular diseases and conditions, including generic alternatives, utilization review procedures, including a prior authorization review process, and any other cost containment activity adopted by rule by the commissioner, designed to reduce the cost of providing prescription drugs while maintaining high quality in prescription drug therapies.

   (2) The commissioner may implement all or a portion of this program through a contract with a third party with expertise in the management of pharmacy benefits.

   (3) The commissioner shall implement the program for Medicaid and VScript, and may implement the program for any other public or private health benefit plan within or outside of this state that agrees to participate in the program, and may enroll in the program individuals without adequate public or private coverage for prescription drugs.

   (4) For HIV and AIDS-related medications used by individuals with HIV or AIDS, the preferred drug list and any utilization review procedures shall not be more restrictive than the drug list and the application of the list used for the State of Vermont AIDS Medication Assistance Program.

(o)(1) The department shall provide information on how beneficiaries enrolled in a pharmacy benefit plan participating in the pharmacy best practices and cost control program authorized in subsection (n) of this section can obtain a copy of the preferred drug list, whether any change has been made to the preferred drug list since it was last issued, and the process by which exceptions to the preferred list may be made.

(2) The pharmacy best practices and cost control program shall authorize pharmacy benefit coverage when a patient’s health care provider prescribes a prescription drug not on the preferred drug list, or a prescription drug which is not the list’s preferred choice:

(A) under the same terms as coverage for preferred choice drugs if:

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

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

(B) if the patient agrees to pay any additional cost in excess of the benefits provided by the patient’s health benefit plan if allowed under the legal requirements applicable to the plan, otherwise to pay the full cost for the higher priced drug.

(3)(A) In connection with the pharmacy best practices and cost control program, the commissioner of prevention, assistance, transition, and health access shall report for review by the health access oversight committee, prior to initial implementation, and prior to any subsequent modifications:

(i) the compilation that constitutes the preferred drug list or list of drugs subject to prior authorization or any other utilization review procedures;

(ii) any utilization review procedures, including any prior authorization procedures; and

(iii) the procedures by which drugs will be identified as preferred on the preferred drug list, and the procedures by which drugs will be selected for prior authorization or any other utilization review procedure.

(B) The health access oversight committee shall closely monitor implementation of the preferred drug list and utilization review procedures to ensure that the consumer protection standards enacted pursuant to subdivision (2) of this subsection are not diminished as a result of implementing the preferred drug list and the utilization review procedures, including any unnecessarily delay in access to appropriate medications. The committee shall ensure that all affected interests, including consumers, health care providers, pharmacists, and others with pharmaceutical expertise have an opportunity to comment on the preferred drug list and procedures reviewed under this subdivision (3).

(4) The commissioner of prevention, assistance, transition, and health access shall report quarterly to the health access oversight committee concerning the following aspects of the pharmacy best practices and cost control program:

(A) the efforts undertaken to educate health care providers about the preferred drug list and the program’s utilization review procedures;

(B) the number of prior authorization requests made, the number of requests denied, the number of denial appeals, and the result of such appeals; and

(C) the number of utilization review events (other than prior authorization requests), the number of such cases in which coverage of a drug is denied, the number of denial appeals, and the results of such appeals.

(5) On or before January 1, 2002, and on or before January 1 of each year for the duration of the pharmacy benefit manager contract, the commissioner of prevention, assistance, transition, and health access shall report to the house and senate committees on health and welfare, and to the health access oversight committee concerning implementation of any pharmacy benefit manager contract entered into by the pharmacy best practices and cost control program. The report shall include:

(A) a description of the activities of the pharmacy benefit manager;

(B) an analysis of the success of the pharmacy benefit manager in achieving each of the department’s public policy goals, together with the pharmacy benefit manager’s report of its activities and achievements;

(C) an assessment of Medicaid and VScript program administrative costs relating to prescription drug benefits, including any recommendations for increasing the administrative efficiency of such programs;

(D) a fiscal report on the state fiscal costs and savings to Vermont of the pharmacy benefit manager contract, including an accounting of any payments, fees, offsets, savings and other financial transactions or accountings; and

(E) any recommendations for enhancing the benefits of the pharmacy benefit manager contract, and an identification of, and any recommendations for minimizing any problems with the contract; and

(F) if the department has not entered into a contract with a pharmacy benefit manager, or if any such contract has been rescinded, any recommendations for pursuing Vermont’s public policy goals relating to pharmaceutical costs, quality and access through other means.

(6)(A) The fiscal report required by subdivision (5)(D) of this subsection shall include the disclosure, in a manner that preserves the confidentiality of any proprietary information as determined by the commissioner, of:

(i) any agreements enter into by the pharmacy benefit manager identified in subsection (d) of this section; and

(ii) the financial impact of such agreements on Vermont, and on Vermont beneficiaries.

(B) The commissioner shall not enter into a contract with a pharmacy benefit manager unless the pharmacy benefit manager has agreed to disclose to the commissioner the terms, and the financial impact on Vermont and on Vermont beneficiaries of:

(i) any agreement with a pharmaceutical manufacturer to favor the manufacturer’s products over a competitor’s products, or to place the manufacturer’s drug on the pharmacy benefit manager’s preferred list or formulary, or to switch the drug prescribed by the patient’s health care provider with a drug agreed to by the pharmacy benefit manager and the manufacturer;

(ii) any agreement with a pharmaceutical manufacturer to share manufacturer rebates and discounts with the pharmacy benefit manager, or to pay “soft money” or other economic benefits to the pharmacy benefit manager;

(iii) any agreement or practice to bill Vermont health benefit plans for prescription drugs at a cost higher than the pharmacy benefit manager pays the pharmacy;

(iv) any agreement to share revenue with a mail order or internet pharmacy company;

(v) any agreement to sell prescription drug data concerning Vermont beneficiaries, or data concerning the prescribing practices of the health care providers of Vermont beneficiaries; or

(vi) any other agreement of the pharmacy benefit manager with a pharmaceutical manufacturer, or with wholesale and retail pharmacies affecting the cost of pharmacy benefits provided to Vermont beneficiaries.

(C) The commissioner shall not enter into a contract with a pharmacy benefit manager which has entered into an agreement or engaged in a practice described in subdivision (B) unless the commissioner determines, and certifies in the fiscal report required by subdivision (5)(D) of this subsection, that such agreement or practice furthers the financial interests of Vermont, and does not adversely affect the medical interests of Vermont beneficiaries.

(p) The commissioner of prevention, assistance, transition, and health access shall develop procedures for the coordination of VScript and Medicaid benefits with pharmaceutical manufacturer patient assistance programs offering free or low cost prescription drugs, including the development of a proposed single application form for such programs. The commissioner may contract with a nongovernmental organization to develop the single application form.

(q) The pharmacy best practices and cost control program shall establish procedures for the timely review of prescription drugs newly approved by the federal Food and Drug Administration, including procedures for the review of newly approved prescription drugs in emergency circumstances.

(r) The department of prevention, assistance, transition, and health access is authorized to amend the rules for the Medicaid program to establish a new optional coverage category, adding coverage for women who: (1) have been screened for and found to have breast or cervical cancer, including pre-cancerous conditions, through the National Breast and Cervical Cancer Early Detection Program (NBCCEDP); (2) are under 65; and (3) are uninsured and other wise not eligible for Medicaid.

(s) The department shall increase the benefit as of July 2001 for individuals enrolled in VScript who have incomes greater than 175 percent and equal to or less than 225 percent of the federal poverty level to secure the discount available in the Pharmacy Discount Program proportionate to the beneficiary’s coinsurance payment for maintenance treatment prescription drugs.

Sec. 123a. EQUITABLE MEDICAID REIMBURSEMENT AND THE MEDICAID FISCAL DEFICIT

   The General Assembly finds that:

1) While Vermont has been a leader in expanding access to health care coverage through its Medicaid programs (including traditional Medicaid, the Dr. Dynasaur program, the Vermont Health Access Plan, VHAP-Pharmacy and VScript), and has a high quality and low cost health care system as recognized by federal measurement, Vermont has not adopted fiscal policies adequate to sustain program costs.

(2) The Vermont Medicaid program is part of the larger health care cost escalation landscape, where Vermont and the nation are experiencing a crisis in health care affordability affecting businesses large and small, state employee and teacher benefit plan costs, as well as the cost of the Medicaid program.

(3) Expenditure growth in Vermont’s Medicaid program is particularly acute because of increased enrollments following program expansions, and because of rising prescription drug costs that affect the traditional Medicaid program and program expansions such as VHAP-Pharmacy and VScript.

(4) Medicaid costs paid by the state are substantially higher than they otherwise would be if enhanced federal financial participation (e.g. SCHIP) were available for more of Vermont’s programs.

(5) Vermont’s fiscal options for Medicaid programs are further limited, absent a federal waiver, by federal Medicaid rules that do not permit significant cost sharing by most program beneficiaries, and by federal Medicaid rules that mandate a specific, comprehensive health benefit coverage.

(6) The federal Medicaid financial participation rate does not reward Vermont’s achievement as a relatively low cost, high quality health care system, since federal financial participation is based solely on per capita income, rather than on the performance of our health care system.

(7) Vermont Medicaid program reimbursement generally is lower than reimbursement paid by commercial insurers, by self insured plans, and by the Medicare program. The Vermont Medicaid program generally does not provide revenue adequate to recover the estimated cost of service.

(8) Cost shifting occurs in the health care financing system when different purchasers pay different amounts for the same service. Medicaid cost shifting occurs when hospitals and some large physician groups are paid by non-Medicaid payers for part of the costs incurred in providing services to Medicaid beneficiaries. Many physicians and other health care providers are unable to shift the cost of providing Medicaid services to other payers.

(9) Medicaid is not the only health benefit plan whose reimbursement policies result in cost shifting: for example, hospitals shift costs incurred in providing Medicare services to other health benefit plans; many health benefit plans secure steep discounts from retail pharmacies that result in higher costs for uninsured individuals; and the cost of hospital free care is recovered from public and private health benefit plans.

(10) Inadequate Medicaid reimbursement is a public policy problem in connection with hospital reimbursement (and perhaps with large provider group reimbursement) because hospitals respond with a cost shift that results in health insurance premiums that are higher than they otherwise would be.

(11) Inadequate Medicaid reimbursement is a public policy problem in connection with physician and other health care provider reimbursement because providers who are inadequately compensated either may face financial difficulties operating a health care practice in Vermont, or may deny health care access to Medicaid beneficiaries. For example, many dentists restrict access to Medicaid beneficiaries. Furthermore, recruitment and retention of certain providers has become a serious problem in geographic areas or specialties with high Medicaid enrollment.

(12) Medicare reimbursement principles have been accepted by many as an appropriate standard that should be adopted for Medicaid reimbursement. Medicare reimbursement is reasonable because Vermont’s federal allocation per patient is well below the national average, reflecting our relatively low-cost system, and the Congress has adopted mechanisms to insure that Medicare reimbursement is appropriate and fair. Establishing a Vermont-specific “reasonable cost” standard would require the development of a significant, new regulatory system to identify reasonable and appropriate costs, and to establish the level of payment needed to ensure access to services by Medicaid beneficiaries.

(13) Federal budget neutrality requirements imposed on the VHAP program constrain Vermont’s ability to quickly eliminate the Medicaid cost shift, since VHAP program costs in excess of the budget neutrality standard will be ineligible for federal financial participation.

(14) Eliminating the Medicaid cost shift by reaching parity with the Medicare reimbursement standard would require substantial new Medicaid revenue: $12 to 19 million for Vermont hospitals; $4 to 6 million for Dartmouth Hitchcock; and $11 to 13 million for physicians.

(15) Most health care issues are inter-related; they cannot be solved in isolation. Eliminating the Medicaid cost shift is a goal that should be considered together with an integrated approach to other Medicaid issues such as establishing equitable Medicaid reimbursement policies, implementing effective cost containment strategies, and creating an adequate, equitable and economically efficient Medicaid financing system.

(16)(A) The state of Vermont shall adopt a fiscal strategy and appropriations to achieve the following goals:

(i) eliminate, within a period of time no longer than four years, cost shifting and under-reimbursement in the Medicaid program, with data developed by the joint fiscal office with the cooperation and assistance of the agency of human services;

(ii) reimburse health care providers in the Medicaid program at least at the federal Medicare level, or some other agreed-to payment structure to attempt to insure access and a stable delivery system; and

(iii) assure that Medicaid costs should continue to be consistent with Vermont’s relatively low cost and efficient delivery system.

(B) To achieve the goals established in subdivision (A) of this subdivision (16) the state of Vermont should consider the following:

(i) A comprehensive strategy to align Medicaid program expenditures and revenues.

(ii) Progressively higher reimbursement levels until parity with the Medicare standard, where applicable, or some other equitable reimbursement standard is attained.

(iii) Monitoring the fiscal soundness and cost effectiveness of the program in consideration of effective utilization and quality programs, and greater federal flexibility in cost sharing and benefit plan design.

(iv) More equitable federal financial participation, by capitalizing on higher federal financial participation rates in other federal programs for existing VHAP beneficiaries, recognizing Vermont’s high quality, low cost system as we approach universal access.

(v) A federal partnership to support pharmaceutical assistance programs, through greater cost sharing or a federal demonstration project.

(17)(A) On or before January 1 of each year until January 1, 2005, the secretary of human services, in consultation with, and with the cooperation of, the joint fiscal committee, shall recommend to the general assembly what steps need to be taken to achieve the commitment stated in subdivision (16) of this section to eliminate the Medicaid cost shift by January 1, 2005.

(B) The commissioner of banking, insurance, securities, and health care administration, the commissioner of personnel, each acute care hospital providing services to Vermont Medicaid beneficiaries, and health insurers, as defined in subdivision 9402(7) of Title 18 and as requested by the secretary, shall provide to the secretary such available information and reasonable assistance as is necessary for the secretary to make its recommendations as required by this subdivision.

(C) Sec. 117b of Act No. 152 of the 2000 Session of the General Assembly (Medicaid Cost Shift Reporting) is repealed.

Sec. 123b. 18 V.S.A. § 9456(b) and (c) are amended to read:

   (b) In conjunction with budget reviews, the commissioner shall:

      (1) review utilization information;

      (2) consider the goals and recommendations of the health resource management plan or state health plan, whichever applies;

      (3) consider the expenditure analysis for the previous year and the proposed expenditure analysis for the year under review;

      (4) consider any reports from professional review organizations;

      (5) solicit public comment on all aspects of hospital costs and use and on the budgets proposed by individual hospitals;

      (6) meet with hospitals to review and discuss hospital budgets for the forthcoming fiscal year;

      (7) give public notice of the meetings with hospitals, and invite the public to attend and to comment on the proposed budgets; *[and]*

      (8) consider the extent to which costs incurred by the hospital in connection with services provided to Medicaid beneficiaries are being charged to non-Medicaid health benefit plans and other non-Medicaid payers;

      (9) require each hospital to file an analysis that reflects a reduction in net revenue needs from non-Medicaid payers equal to any anticipated increase in Medicaid reimbursements resulting from appropriations designed to reduce the Medicaid cost shift; and

      *[(8)]*(10) seek the advice and recommendations of the public oversight commission.

   (c) Individual hospital budgets established under this section shall:

      (1) be consistent with the health resource management plan or state health plan, whichever applies;

      (2) take into consideration national, regional or instate peer group norms, according to indicators, ratios and statistics established by the commissioner;

      (3) promote efficient and economic operation of the hospital; *[and]*

      (4) reflect budget performances for prior years; and

      (5) include a finding that the analysis provided in subdivision (b)(9) of this section is a reasonable methodology for reflecting a reduction in net revenues for non-Medicaid payers.

Sec. 123c. FEDERALLY-QUALIFIED HEALTH CENTERS

(a) It is the purpose of this section to assist Vermonters to purchase prescription drugs at the lowest possible cost, and to advance Vermont’s goal of affordable access to quality health care for all Vermonters through the expansion and development of federally-qualified health centers throughout this state. The general assembly finds that an appropriate expansion of federally-qualified health centers can:

(1) empower communities to create a system of universal access to primary health care that people need;

(2) create a partnership between Vermonters who use health care services and the providers of those services;

(3) reduce health care costs for patients through administration of an income-based sliding scale fee schedule for primary health care services;

(4) expand access to health care in medically-underserved areas, and reduce cost shifting to private health insurance plans through a service-based reimbursement schedule for primary health care providers that is determined by the reasonable cost of the services provided; and

(5) reduce health care costs for individuals, businesses and government through access to the substantially discounted prescription drug prices available pursuant to federal law.

(b) Within 120 days of passage of this act, the governor is directed to request from the federal government medically-underserved area designations, and any other designation or approval needed to establish federally-qualified health centers or other entities permitted to access substantially discounted prescription drug prices available pursuant to federal law in all appropriate regions of the state of Vermont not so designated on the effective date of this act, and to take all steps necessary to secure such designations and approvals.

(c) Within 30 days of passage of this act, the department of health shall award a contract to implement the provisions of this section, and shall award to the contractor such funds as are appropriated by the general assembly to carry out the purpose of this section.

(d) The contract awarded by the department of health to carry out the purposes of this section shall provide for the following:

(1) the development and implementation of a plan to create an appropriate number of federally-qualified health center administrative entities statewide, with such satellite facilities as the federally-qualified health center administrative entities may determine are necessary to meet the health care needs of the community;

(2) technical assistance, by contract or other means, to rural health centers and health care providers seeking federal approval as a federally-qualified health center;

(3) grants not to exceed $10,000.00 to rural health centers and health care providers, matched by the grant recipient at 50 percent of the grant amount, to support all or a portion of the expenses associated with conversion to a federally-qualified health center;

(4) grants not to exceed $10,000.00 to nonprofit community organizations, matched by the grant recipient at 50 percent of the grant amount, to support all or a portion of the expenses associated with the establishment of federally-qualified health center administrative entities;

(5) the development and implementation of plans to ensure that each federally-qualified health center operating in this state provides access to prescription drugs to patients of the center at substantially discounted prices available pursuant to federal law, through contracts with existing community retail pharmacies and in conformity with any applicable requirements of the federal health resources and services administration, or through a health center dispensary if a contract with a community pharmacy is not feasible; and

(6) the development of and participation in one or more pilot or demonstration projects by hospital and physician groups and others, in accordance with applicable federal laws and regulations, to expand the benefits of federally-qualified health centers to a greater number of Vermonters.

(e) The commissioner of health and its contractor shall report to the general assembly on or before January 15 of each year with its progress in implementing the provisions of this section, and with an accounting of its use of grant funds.

(f) Vermont’s Congressional Delegation is urged to take all actions necessary and desirable in securing designations, approvals and other actions by the federal government required to carry out the purposes of this section.

(g) The commissioner of health may exercise sole source contracting authority to carry out the provisions of this section.

Sec. 124. 18 V.S.A. chapter 91 is amended to read:

CHAPTER 91. GENERIC DRUGS

§ 4601. DEFINITIONS

For the purposes of this chapter, unless the context otherwise clearly requires:

(1) “Brand name” means the registered trademark name given to a drug product by its manufacturer or distributor;

(2) “Generic name” means the official name of a drug product as established by *[the United States Pharmacopoeia or National Formulary or their successors]* the United States Adopted Names Council (USAN) or its successor, if applicable;

(3) “Pharmacist” means a natural person licensed by the state board of pharmacy to prepare, compound, dispense and sell drugs, medicines, chemicals and poisons;

(4) *[“Formulary” means a list of generic names, each of which represents a number of drug products or brand names considered by the committee to be chemically and therapeutically equivalent]* “Generic drug” means a drug listed by generic name and considered to be chemically and therapeutically equivalent to a drug listed by brand name, as both names are identified in the most recent edition of the federal Food and Drug Administration’s “Orange Book” of approved drug products;

(5) “Prescriber” means any duly licensed physician, dentist, veterinarian or other practitioner licensed to write prescriptions for the treatment or prevention of human disease in man or animal. *[§ 4602. FORMULARY; CREATION]* *[The secretary of the agency of human services is responsible for developing a formulary within 180 days of the effective date of this chapter. The secretary shall appoint a committee to establish and maintain a formulary, which committee shall consist of six members who shall be residents of the state of Vermont. The committee shall consist of one member of the faculty of the department of pharmacology of the college of medicine at the University of Vermont; one member of the faculty of another department of the college of medicine at the University of Vermont who is experienced in the evaluation of clinical trials and research methodology; one member of the board of pharmacy; one member of the medical profession, primarily engaged in the practice of medicine, other than a member of the board of medical examiners, to be appointed from a list of names submitted by the Vermont state medical society; one member who is a pharmacist, other than a member of the board of pharmacy, to be appointed from a list of names submitted by the Vermont pharmaceutical association; and one public member who is not a member of any health profession to represent the consumer.]* *[§ 4603. COMMITTEE: RULES]* *[(a) The committee shall elect a chairman from its members.]* *[(b) A majority of the members of the committee shall constitute a quorum. The committee shall act only by vote of a majority of its members present. Meetings shall be called by the chairman upon adequate notice to all members.]* *[(c) The secretary of the agency of human services shall, under chapter 25 of Title 3, adopt rules of procedure.]* *[(d) Members of the committee shall be entitled to $30.00 per diem and their necessary and actual expenses.]* *[(e) The committee shall meet as often as the chairman considers necessary but in no event less than twice each year.]* *[§ 4604. DUTIES OF COMMITTEE]* *[(a) The committee shall establish and maintain a formulary as defined in subdivision (4) of section 4601 of this title which shall be approved by the secretary of the agency of human services.]* *[(b) The committee shall update the formulary at least annually.]* *[(c) If the committee adopts in whole or in part formularies adopted by other states and federal agencies, it must satisfy itself that such formularies are based on valid scientific evidence of chemical and therapeutic equivalence.]* *[(d) The formulary or updates as provided under subsections (a) and (b) of this section shall, whenever the committee updates the formulary, be distributed by the secretary in cooperation with the appropriate Vermont professional boards to all pharmacies and prescribers in Vermont.]* *[(e) Each year, on or before January 15, the committee shall submit a written report describing its activities of the previous year to the house and senate committees on government operations.]*

§ 4605. ALTERNATIVE DRUG SELECTION

   (a) When a pharmacist receives a prescription for a drug which is listed either by generic name or brand name *[on the Vermont state formulary, he]* in the most recent edition of the federal Food and Drug Administration’s “Orange Book” of approved drug products, the pharmacist shall select the lowest priced drug from *[the formulary]* such list which *[in his professional judgment]* is chemically and therapeutically equivalent and which *[he]* the pharmacist has in stock, unless otherwise instructed by the *[purchaser or]* prescriber, or by the purchaser if the purchaser agrees to pay any additional cost in excess of the benefits provided by the purchaser’s health benefit plan if allowed under the legal requirements applicable to the plan, otherwise to pay the full cost for the higher priced drug.

(b) The purchaser shall be informed by the pharmacist or his representative that an alternative selection as provided under subsection (a) of this section will be made unless the purchaser *[chooses to refuse the substitution]* agrees to pay any additional cost in excess of the benefits provided by the purchaser’s health benefit plan if allowed under the legal requirements applicable to the plan, otherwise to pay the full cost for the higher priced drug.

(c) When refilling a prescription, pharmacists shall receive the consent of the *[patient and]* prescriber to dispense a drug different from that originally dispensed, and shall inform the purchaser that a generic substitution shall be made unless the purchaser agrees to pay any additional cost in excess of the benefits provided by the purchaser’s health benefit plan if allowed under the legal requirements applicable to the plan, otherwise to pay the full cost for the higher priced drug.

(d) Any pharmacist substituting a generically equivalent drug shall charge no more than the usual and customary retail price for that selected drug. This charge shall not exceed the usual and customary retail price for the prescribed brand.

§ 4606. BRAND CERTIFICATION

If the prescriber does not wish substitution to take place, he or she shall write “brand necessary” or “no substitution” in his or her own handwriting on the prescription blank, together with a written statement that the generic equivalent has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient’s medical condition or causes or is reasonably expected to cause adverse or harmful reactions in the patient. In the case of an unwritten prescription, there shall be no substitution if the prescriber expressly indicates to the pharmacist that the brand name drug is necessary and substitution is not allowed because the generic equivalent has not been effective, or with reasonable certainty is not expected to be effective, in treating the patient’s medical condition or causes or is reasonably expected to cause adverse or harmful reactions in the patient.

§ 4607. INFORMATION; LABELING

   (a) Every pharmacy in the state shall have posted a sign in a prominent place that is in clear unobstructed view which shall read: “Vermont law requires pharmacists in some cases to select a less expensive generic equivalent for the drug prescribed unless you or your physician direct otherwise. Substitution will be noted on your prescription label by an “S” in the lower left corner. Ask your pharmacist.”

   (b) The label of the container of all drugs dispensed by a pharmacist under this chapter shall indicate the generic name using an abbreviation if necessary, the strength of the drug and the name or number of the manufacturer or distributor.

   (c) If a generically equivalent substitution has been made, an “S” will be noted in the lower left corner of the prescription label.

§ 4608. LIABILITY

   (a) Nothing in this chapter shall affect a licensed hospital with the development and maintenance of a hospital formulary system in accordance with that institution’s policies and procedures that pertain to its drug distribution system developed by the medical staff in cooperation with the hospital’s pharmacist and administration.

   (b) The substitution of a drug by a pharmacist under the provisions of this chapter does not constitute the practice of medicine.

Sec. 125. Sec. 3 of No. 3 of the Acts of 1999, as amended by Sec. 118 of No. 152 of the Acts of 2000, is further amended to read:

Sec. 3. EFFECTIVE DATE

   This act shall be effective from the date of passage and shall be repealed on July 1, *[2001]* 2002.

Sec. 126. Prevention, assistance, transition, and health access - general assistance

Grants4,044,762
Source of funds
General fund3,233,441
Federal funds811,320
Special funds1
Total4,044,762

   (a) Of the above appropriation, $400,000.00 in federal TANF funds is allocated specifically for assistance to families who demonstrate that they are faced with a reasonably preventable loss of housing and who meet state requirements for this assistance, as established by regulation effective July 1, 1998, including modifications effective July 1, 1999, and July 1, 2000. Assistance under this provision is not an entitlement, and shall cease upon expenditure of these allocated funds.

   (b) Of the above appropriation, an amount not to exceed $150,000.00 ($75,000.00 federal TANF funds and $75,000.00 general funds) may be expended for temporary housing assistance to individuals and families that have reached the 28-day maximum allowed under department regulations, and have a continued need for this type of emergency assistance. Assistance shall be limited to an additional 56 cumulative days beyond the current 28-day maximum. Assistance under this provision is not an entitlement, and shall cease upon expenditure of these allocated funds.

Sec. 127. Prevention, assistance, transition, and health access - food stamp cash out

Grants4,519,544
Source of funds
Federal funds4,519,544

Sec. 128. Prevention, assistance, transition, and health access - home heating fuel assistance/LIHEAP

Personal services20,000
Operating expenses90,000
Grants5,752,075
Total5,862,075
Source of funds
Special funds5,862,075

Sec. 129. PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH ACCESS - HOME HEATING FUEL ASSISTANCE/LIHEAP

   (a) All federal funds granted to the state for home heating fuel assistance under the Low Income Home Energy Assistance Program (LIHEAP) or other similar federal program in fiscal year 2002, and all unexpended LIHEAP funds granted to the state in fiscal year 2001, are hereby transferred to the home heating fuel assistance trust fund for the provision of home heating fuel assistance, including program administration, under chapter 26 of Title 33.

(b) For the purposes of a crisis set-aside, seasonal home heating fuel assistance through December 31, 2001, and program administration, the commissioner of finance and management shall transfer $2,550,000.00 from the home weatherization assistance trust fund to the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are not available. An equivalent amount shall be returned to the home weatherization trust fund from the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are received. Should a transfer of funds from the home weatherization assistance trust fund be necessary for the 2001-2002 crisis set-aside and seasonal home heating fuel assistance through December 31, 2001, and LIHEAP funds awarded as of December 31, 2001 for fiscal year 2002 do not exceed $2,550.000.00, subsequent payments under the home heating fuel assistance program shall not precede January 30, 2002. Notwithstanding any other provision of law, payments authorized by the office of home heating fuel assistance shall not exceed funds available except that for fuel assistance payments made through December 31, 2001, the commissioner of finance and management may anticipate receipts into the home weatherization assistance trust fund.

   (c) Of the funds appropriated in Sec. 128 of this act, no more than $900,000.00 shall be expended for crisis fuel assistance benefits, crisis fuel direct service/administration, and crisis fuel after-hours assistance. In the 2001-2002 fuel season, in the event that $900,000.00 is insufficient to fund the crisis component of the fuel program, as defined above, and inadequate federal LIHEAP emergency contingency funding is released to the state during the 2001-2002 program year, the home weatherization assistance trust fund may be the source, consistent with 33 V.S.A. § 2502(d), of the additional funds required.

Sec. 129a. 33 V.S.A. § 2602(c) is added to read:

   (c) The secretary shall engage in cost-effective purchasing practices to maximize the purchasing power of public funds used in connection with the home heating fuel assistance program. Such practices shall include, but not be limited to, preseason purchases of fuel, and negotiations with fuel suppliers on behalf of program recipients for additional fuel price discounts. The practices authorized by this subsection shall be used in connection with all applicable fuels purchased by program beneficiaries. The secretary shall make available to program recipients the list of fuel suppliers who have agreed to provide fuel discounts.

Sec. 129b. 33 V.S.A. § 2603(d) is added to read:

   (d) The secretary may spend, in anticipation of federal receipts into the home heating fuel assistance trust fund established under this section, a sum no greater than 75 percent of the federal block grant funds allocated to Vermont for the current federal fiscal year under the Low Income Home Energy Assistance Program (LIHEAP), for the purpose of permitting preseason purchases of fuel and other cost-effective purchasing practices authorized by subsection 2602(c) of this title, in accordance with rules adopted by the secretary.

Sec. 129c. 33 V.S.A. § 2502(e) is added to read:

   (e) The emergency board may direct that a portion of the amounts raised by the gross receipts on retail sales of fuel imposed by section 2503 of this title be used for energy assistance to low income persons and deposited into the home heating fuel assistance trust fund, for the purpose of meeting the home heating fuel assistance needs of the program recipients under chapter 26 of this title, provided that the emergency board determines such transfer does not reduce the fiscal capacity of the state office of economic opportunity to meet the budgeted obligations of the weatherization program set forth in this chapter.

Sec. 129d. INVESTIGATION OF COST-EFFECTIVE NATURAL GAS PURCHASING

   The department of public service shall conduct financial analyses, and shall conduct negotiations with natural gas companies under the jurisdiction of the public service board, to determine the cost-effectiveness of any purchasing practices authorized under subsection 2602(c) of Title 33 (home heating fuel assistance program).

Sec. 129e. EXPEDITED RULES

(a) Notwithstanding any other provision of the law, for the purpose of an expeditious implementation of cost effective purchasing practices for the 2001-2002 heating season only, the secretary shall adopt such rules as are necessary to implement the provisions of Secs. 129a and 129b of this act. The rule change shall be adopted as soon as practicable after the passage of this act and shall be exempt from the procedural requirements of 3 VSA chapter 25, except that the agency shall make reasonable efforts to ensure that the change is known to persons who may be affected by it. Any such rules filed by the secretary of human services with the secretary of state and the legislative committee on administrative rules shall be deemed to be in full compliance with 3 V.S.A. § 843, and shall be accepted by the secretary of state if filed with a certification by the secretary of human services that the rule is required to meet the purposes of this subsection.

(b) The public service department shall request the commencement of any proceedings before the public service board as it deems necessary to implement cost-effective natural gas purchasing practices.

Sec. 130. ADOPTION OF PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH ACCESS RULES

   (a) The secretary of human services is authorized to adopt rules under the expeditious rule-making procedures provided in this section in order that changes reflected in this act to programs administered by the department of prevention, assistance, transition, and health access may be implemented by July 1, 2001. Notwithstanding the provisions to the contrary of 3 V.S.A. chapter 25, the agency of human services may file prior to and adopt, effective July 1, 2001, all rules necessary to do the following:

      (1) Implement Medicaid, VHAP, VHAP-Pharmacy, and VScript policies as specified in this act.

      (2) Exempt all individuals domiciled in the state of Vermont from the implementation of Sec. 115(a) of Public Law 104-193 through June 30, 2002.

   (b) Such rules may be adopted by filing them in final form with the secretary of state and the legislative committee on administrative rules under 3 V.S.A. § 841, after only such publication, notice, and public input as is deemed adequate and feasible by the secretary of human services. The legislative committee on administrative rules shall review and may approve or object to the final proposed rules under the provisions of 3 V.S.A. § 842, except that its action shall be completed within 15 days or June 22, 2001, whichever is sooner. Rules so adopted may be effective as soon as four days after adoption, and have the full force and effect of rules adopted pursuant to 3 V.S.A. chapter 25 and may supersede or amend existing rules. Any such rules filed by the secretary of human services with the secretary of state shall be deemed to be in full compliance with 3 V.S.A. § 843, and shall be accepted by the secretary of state, if filed with a certification by the secretary of human services that the rule is required to meet the purposes of this section.

Sec. 131. Office of economic opportunity

Personal services489,332
Operating expenses86,924
Grants9,198,110
Total9,774,366
Source of funds
General fund1,004,950
Federal funds4,349,207
Special funds4,047,844
Interdepartmental transfer372,365
Total9,774,366

   (a) Of the above general fund appropriation, $500,000.00 shall be granted to community agencies for homeless assistance by preserving existing services. These funds may be granted alone or in conjunction with federal McKinney emergency shelter funds. Grant decisions shall be made with assistance from the coalition of homeless Vermonters.

Sec. 132. Office of child support services

Personal services6,096,719
Operating expenses3,411,704
Total9,508,423
Source of funds
General fund964,111
Federal funds7,983,087
Special funds454,125
Interdepartmental transfer107,100
Total9,508,423

   (a) The establishment of two (2) new limited service classified positions - Microphotographer - is authorized in fiscal year 2002.

Sec. 133. Social and rehabilitation services - administrative and support services

Personal services1,761,606
Operating expenses223,690
Total1,985,296
Source of funds
General fund890,896
Federal funds1,094,400
Total1,985,296

Sec. 134. Social and rehabilitation services - disability determination services

Personal services2,649,156
Operating expenses477,364
Total3,126,520
Source of funds
Federal funds2,881,375
Interdepartmental transfer245,145
Total3,126,520

Sec. 135. Social and rehabilitation services - social services

Personal services14,906,163
Operating expenses2,062,366
Grants48,999,616
Total65,968,145
Source of funds
General fund24,285,079
Federal funds40,573,419
Special funds1,109,647
Total65,968,145

   (a) The following positions are authorized to replace ongoing contractual services. The establishment of two (2) new classified positions - one (1) Grants Program Manager and one (1) Program Services Clerk - is authorized in fiscal year 2002.

Sec. 136. Social and rehabilitation services - Woodside juvenile rehabilitation center

Personal services1,983,000
Operating expenses259,384
Total2,242,384
Source of funds
General fund2,211,783
Interdepartmental transfer30,601
Total2,242,384

Sec. 137. Social and rehabilitation services - child care services

Personal services1,679,867
Operating expenses305,623
Grants29,034,723
Total31,020,213
Source of funds
General fund7,190,187
Transportation fund75,000
Federal funds22,923,026
Special funds832,000
Total31,020,213

   (a) The division of child care services shall not impose a cap on the number of subsidized child care scale slots without prior review of program utilization during the fiscal year 2002 budget adjustment process.

(b) Of the above appropriation $150,000 is to provide grants to support before and after school child care programs for school age children. Programs qualifying for grants must offer services year-round, opening by 6:30 a.m. and remaining open until 6:00 p.m.; programs must be in the process of obtaining NSACCA accreditation; programs must be established or operated in conjunction with a community’s public schools or municipality; programs must participate in the school age network in Vermont; programs must develop services collaboratively with existing services and resources, including coordination of funding streams, to assure maximum utilization of resources; programs must give consideration to transportation needs between the child care provider and the school in both the morning and afternoon. Collaboratives that support family childcare homes which specialize in serving school age children only should be encouraged and supported with fiscal incentives.

Sec. 138. [Omitted.]

Sec. 139. Developmental and mental health services - central office

Personal services2,159,254
Operating expenses612,550
Total2,771,804
Source of funds
General fund1,294,268
Federal funds1,477,536
Total2,771,804

   (a) The following positions are authorized to replace ongoing contractual services. The establishment of two (2) new classified positions - Acute Care Manager - is authorized in fiscal year 2002.

Sec. 140. Developmental and mental health services - community mental health

Personal services2,168,668
Operating expenses338,170
Grants70,100,675
Total72,607,513
Source of funds
General fund23,354,507
Federal funds42,063,814
Special funds5,290,820
Interdepartmental transfer1,898,372
Total72,607,513

   (a) Of the above appropriation, $3,826,570.00 shall be used for compensation increases for mental health service providers, with due regard to the lowest income employees. Such increases shall extend to contract workers in the community mental health provider network, including home providers.

   (b) Of the above appropriation, $385,000.00 shall be used for benefit increases for mental health service providers.

Sec. 141. Developmental and mental health services - developmental services

Personal services2,811,280
Operating expenses416,522
Grants77,704,841
Total80,932,643
Source of funds
General fund30,437,405
Federal funds49,422,432
Special funds579,506
Interdepartmental transfer493,300
Total80,932,643

   (a) Of the above appropriation, $3,132,695.00 shall be used for compensation increases for developmental service providers, with due regard to the lowest income employees. Such increases shall extend to contract workers in the developmental service provider network, including home providers.

   (b) Of the above appropriation, $425,250.00 shall be used for benefit increases for developmental service providers.

Sec. 142. Developmental and mental health services - Vermont state hospital

Personal services8,857,425
Operating expenses795,234
Grants143,000
Total9,795,659
Source of funds
General fund2,839,487
Federal funds6,811,172
Special funds145,000
Total9,795,659

Sec. 143. Aging and disabilities - administration and support

Personal services14,822,317
Operating expenses1,957,593
Total16,779,910
Source of funds
General fund7,042,974
Federal funds8,394,918
Special funds491,000
Interdepartmental transfer851,018
Total16,779,910

   (a) The establishment of one (1) new exempt position - Attorney - is authorized in fiscal year 2002.

   (b) Personal care attendants are exempt from 21 V.S.A. § 342 and shall not be construed as state employees except for purposes of 21 V.S.A. chapters 9 and 17.

   (c) Of the above appropriation, at least $10,000.00 shall be expended by the department for the support of “The Independent”, an independent newsletter to provide information and education on aging and disabilities issues.

   (d) The state shall allocate the appropriation for the traumatic brain injured waiver for fiscal year 2002 in the following manner: rehabilitation program, 77 slots; long-term program, 12 slots. The number of long-term program slots may be increased by no more than 18 if matching funds are available to support the additional slots.

Sec. 144. Aging and disabilities - vocational rehabilitation

Grants5,042,367
Source of funds
General fund1,579,195
Federal funds3,433,172
Special funds10,000
Interdepartmental transfer20,000
Total5,042,367

Sec. 145. Aging and disabilities - blind and visually impaired

Grants1,365,933
Source of funds
General fund540,106
Federal funds705,827
Special funds120,000
Total1,365,933

Sec. 146. Aging and disabilities - division of advocacy and independent living

Grants11,903,377
Source of funds
General fund3,989,837
Transportation fund522,000
Federal funds6,289,240
Special funds1,042,300
Interdepartmental transfer60,000
Total11,903,377

   (a) Notwithstanding 32 V.S.A. § 706, the department may transfer up to $250,000.00 in general funds for the elderly mental health initiative to the department of developmental and mental health services to maximize the use of Medicaid funds.

(b) On or before December 15, 2001, the commissioner of the department of aging and disabilities, in consultation with the Vermont Alzheimer’s commission, the Vermont probate judges association, the Vermont long-term care ombudsman and the Vermont senior citizens law project, shall report to the general assembly on the effectiveness of the office of public guardianship in meeting its statutory responsibilities under 14 V.S.A. § 3091 et seq. The report shall include, but need not be limited to, assessments and recommendations regarding caseload limits; appropriate staffing levels; acceptable waiting list levels; the appropriateness and limits of developing and utilizing volunteer guardians; alternative approaches to meeting the needs of clients; and the cost-effectiveness of the office of public guardian in delaying or avoiding institutionalization.

(c) The establishment of one (1) new classified position - Public Guardian - is authorized in fiscal year 2002.

(d) Of the above appropriation, $801,427.00 shall be utilized for the Homemaker/Home Care Program.

Sec. 147. Children’s trust fund

Grants287,748
Source of funds
General fund109,748
Federal funds88,000
Special funds90,000
Total287,748

   (a) At least 65 percent of the state appropriation for the Children’s Trust Fund will be awarded for community-based program activities for the broad range of child abuse and neglect prevention activities.

Sec. 148. Governor’s commission on women

Personal services188,801
Operating expenses37,875
Grants5,000
Total231,676
Source of funds
General fund206,676
Special funds5,000
Interdepartmental transfer20,000
Total231,676

Sec. 149. Retired senior volunteer program

Grants136,880
Source of funds
General fund136,880

Sec. 150. Disabled and needy veterans

Personal services1,850
Operating expenses900
Grants29,884
Total32,634
Source of funds
General fund32,634

Sec. 151. Vermont veterans’ home - care and support services

Personal services8,946,901
Operating expenses2,594,100
Total11,541,001
Source of funds
General fund1,085,254
Federal funds2,852,405
Special funds7,603,342
Total11,541,001

   (a) The following positions are authorized to replace ongoing contractual services. The establishment of three (3) new classified positions - Housekeeper - is authorized in fiscal year 2002.

   (b) The establishment of six (6) new classified positions - Housekeeper - is authorized in fiscal year 2002.

Sec. 151a. Sec. 143 of No. 152 of the Acts of 2000 is amended to read:

Sec. 143. Vermont veterans’ home - care and support services

* * *

   (a) *[All]* Notwithstanding the provisions of Sec. 2 of No. 53 of the Acts of 1971 relating to holding and management of funds, all funds not already managed in accordance with subchapter 1 of chapter 7 of Title 32, except residents’ funds in subsection *[(c)]*(e) of this section, currently being administered by the Board of Trustees of the Vermont veterans’ home (hereafter called the Vermont veterans’ home) shall, as of the effective date of this act, be transferred to the state treasurer, to be credited to appropriate accounts established in compliance with subsection 401(a) of Title 32. Such funds may be expended by the Vermont veterans’ home upon submittal of vouchers to the commissioner of finance and management in compliance with section 463 of Title 32, and issuance of warrants pursuant to sections 461 and 465 of Title 32. *[Funds transferred pursuant to this section shall be administered pursuant to subchapter 5 of chapter 7 of Title 32 and interest earned by these funds shall be credited to the special fund.]*

(b) There is created a donations fund, to be administered pursuant to subchapter 5 of chapter 7 of Title 32. To this fund shall be credited those donations transferred to the state treasurer in subsection (a) of this section and any future donations to the Vermont veterans’ home with specific restrictions on their use. Interest both prospectively and retrospectively earned on the fund established pursuant to this *[section]* subsection shall be credited to the donations fund.

   (c) There is created a trustees’ fund, to be administered pursuant to subchapter 5 of chapter 7 of Title 32. To this fund shall be credited those donations transferred to the state treasurer in subsection (a) of this section and any future donations to the Vermont veterans’ home without specific restrictions on their use. The trustees’ fund shall be administered for the benefit of the Vermont veterans’ home or its residents, within the conditions of the Vermont veterans’ home charter and the Trenor W. Park deed. Interest both prospectively and retrospectively earned on the fund established pursuant to this subsection shall be credited to the trustees’ fund.

(d) The so-called “endowment” fund shall be treated as a trust fund from which the principal cannot be expended (a “nonexpendable” trust) until the composition of the fund can be determined, in consultation with the Office of the State Attorney General, by an auditor engaged by the Vermont veterans’ home. Such determination shall be made by October 1, 2001. Any “endowment” funds determined to be trust funds in accordance with law shall be designated as nonexpendable or expendable according to the terms and conditions of the respective trusts. Any “endowment” funds not determined to be trust funds shall be transferred to the donations or trustees’ funds established in subsections (b) and (c) of this section. Interest both prospectively and retrospectively earned on the “endowment” fund shall be credited to that fund. Interest earned on the trust funds designated following the determination in this subsection shall be credited to the trust funds and shall be considered expendable unless contravened by the terms and conditions of the respective trusts. *[(c)]*(e) Notwithstanding subchapter 1 of chapter 7 of Title 32, the Vermont veterans’ home is authorized to retain those funds wherein it is acting in a trustee capacity for residents of the Vermont veterans’ home. Establishing and maintenance of these accounts shall be pursuant to section 431 of Title 32.

   (*[d)]*(f) Prior gifts received and included in the transfer in subsection (a) of this section to the state treasurer, and not previously subjected to section 5 of Title 32, are hereby accepted. Notwithstanding subdivision 5(a)(3) of Title 32, the $1,000.00 limit for reporting pursuant to that subdivision shall be $5,000.00 as applied to the Vermont veterans’ home.

Sec. 152. Vermont association for blind and visually impaired, Inc.

Grants24,885
Source of funds
General fund24,885

Sec. 153. Total human services1,054,416,690
Source of funds
General fund330,713,854
Transportation fund1,999,578
Federal funds585,722,764
Special funds104,911,714
Tobacco fund22,625,000
Internal service funds1,878,558
Interdepartmental transfer6,557,222
Expendable trust8,000
Total1,054,416,690

Sec. 154. Employment and training

Personal services19,378,377
Operating expenses7,899,762
Grants1,502,000
Total28,780,139
Source of funds
General fund837,453
Federal funds24,201,686
Special funds130,000
Interdepartmental transfer3,611,000
Total28,780,139

Sec. 155. Total employment and training28,780,139
Source of funds
General fund837,453
Federal funds24,201,686
Special funds130,000
Interdepartmental transfer3,611,000
Total28,780,139

Sec. 156. Education - finance and administration

Personal services3,078,513
Operating expenses667,979
Grants11,100,000
Total14,846,492
Source of funds
General fund2,361,228
Federal funds12,475,459
Special funds9,805
Total14,846,492

Sec. 157. Education - standards and assessment

Personal services2,736,656
Operating expenses368,842
Grants261,506
Total3,367,004
Source of funds
General fund2,503,211
Federal funds819,121
Special funds44,672
Total3,367,004

Sec. 158. Education - education quality

Personal services6,310,144
Operating expenses2,061,930
Grants88,282,845
Total96,654,919
Source of funds
General fund6,429,793
Transportation fund639,932
Education fund7,540,457
Federal funds79,981,188
Special funds1,010,285
Interdepartmental transfer1,053,264
Total96,654,919

   (a) The appropriations in this section shall be authorized notwithstanding sections 1564, 1565, 1566, and 1567 of Title 16.

Sec. 159. 16 V.S.A. § 1567(a) is amended to read:

§ 1567. OVERHEAD COSTS

   (a) In addition to tuition assistance provided under section 1561 of this title, assistance shall be paid to receiving districts in the amount of overhead costs calculated in accordance with this chapter for the school year two years prior to the year of payment. Where new construction or renovations in any fiscal year have resulted in a 25 percent or greater increase in the square footage of a technical center, the commissioner shall include the additional square footage in the calculation of overhead assistance for the year in which the newly constructed or renovated space is occupied. If the space is occupied after the first student attendance day for that year, the assistance shall be prorated accordingly.

Sec. 160. Education - Act 117 Cost Containment

Personal services986,344
Operating expenses39,656
Grants65,000
Total1,091,000
Source of funds
Federal funds1,091,000

Sec. 161. Education - adult basic education

Grants3,449,321
Source of funds
General fund2,589,321
Federal funds860,000
Total3,449,321

   (a) The department shall develop a system of standards and accountability for adult basic education and shall begin the implementation of such a system by the end of fiscal year 2002.

Sec. 162. Education - school-based anti-tobacco, alcohol and substance abuse programs

Personal services140,000
Operating expenses35,000
Grants750,000
Total925,000
Source of funds
Tobacco fund925,000

   (a) The establishment of one (1) permanent classified position – Substance Abuse Prevention Coordinator - is authorized in fiscal year 2002.

   (b) The establishment of two (2) new classified positions – Regional Substance Abuse Prevention Coordinator – is authorized in fiscal year 2002.

   (c) The establishment of one (1) new classified position – Administrative Assistant – is authorized in fiscal year 2002.

Sec. 163. FUND APPROPRIATIONS AND TRANSFERS

   (a) There is appropriated in fiscal year 2002 from the general fund for transfer to the education fund the amount of $246,363,322.00.

(b) There is appropriated in fiscal year 2002, and each year thereafter, from the education fund to the commissioner of education $450,000.00 for the purpose of awarding grants to technical centers for up to three years to support innovative program development responding to emerging technologies and providing high-skill, high-wage employment.

(c) There is appropriated $50,000.00 in fiscal year 2002 from the general fund to the fiscal review panel established under 16 V.S.A. § 2974(e).

(d) There is appropriated in fiscal year 2002 from the general fund to the commissioner of education $17,000.00 for the purpose of civic education pursuant to Sec 158a of No. 62 of the Acts of 1999.

(e) In fiscal year 2003, there shall be appropriated and transferred from the general fund to the education fund the amount transferred in subsection (a) of this section, increased by 3.5 percent.

Sec. 163a. 32 V.S.A. § 5404 is amended by designating the existing provisions as subsection “(a)”, and by adding subsections (b), (c) and (d) to read:

   (b) Annually, on or before July 15, the clerk of a municipality, or the supervisor of an unorganized town or gore, shall transmit to the director in an electronic format as prescribed by the director: education and municipal grand list data, including exemption information and grand list abstracts; tax rates; and the total amount of taxes assessed in the town or unorganized town or gore. The data transmitted shall identify each parcel by a parcel identification number assigned under a numbering system prescribed by the director. Municipalities may continue to use existing numbering systems in addition to, but not in substitution for, the parcel identification system prescribed by the director. If changes or additions to the grand list are made by the listers or other officials authorized to do so after such abstract has been so transmitted, such clerks shall forthwith certify the same to the director.

   (c) If a town clerk or the legislative body fails without good cause, as determined by the commissioner, to transmit the grand list data or the tax data in a timely manner and in the format required by the director, the commissioner shall notify the secretary of transportation and the commissioner of education, who shall withhold all general and other aid payments owing to the municipality until the grand list information is filed as required by the director under subsection (b) of this section. Federal funds are exempt from withholding if the secretary or commissioner has an opinion of counsel that withholding would be a violation of federal law.

   (d) Municipalities shall include, on all property tax bills, the parcel identification number prescribed in subsection (b) of this section.

Sec. 163b. 32 V.S.A. § 6061 is amended to read:

§ 6061. DEFINITIONS

* * *

(6) “Property tax” means the amount of ad valorem taxes, exclusive of special assessments, interest, penalties, and charges for service, assessed *[in the]* *[fiscal year]* on real property in this state used as the claimant’s homestead.

(A) “Statewide property tax” means the tax assessed under chapter 135 of this title *[in the fiscal year]* on real property in this state used as the claimant’s homestead.

(B) “Local share property tax” means the tax assessed under section 428 or 511 of Title 16 *[in the fiscal year]* on real property in this state used as the claimant’s homestead.

* * *

      *[(10) “Fiscal year” means the municipal fiscal year which began in the taxable year.]*

Sec. 163c. 32 V.S.A. § 6066(a)(3) is amended to read:

(3) a claimant whose household income does not exceed $47,000.00 shall also be entitled to a credit against the claimant’s tax liability under chapter 151 of this title equal to the amount by which the property taxes for the municipal fiscal year which began in the taxable year upon the claimant’s homestead, adjusted under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant’s household income for the taxable year as follows:

* * *

Sec. 163d. 32 V.S.A. § 6066a is amended to read:

§ 6066a. PAYMENT OF PROPERTY TAX ADJUSTMENTS *[(a) Preliminary tax adjustment.]* Annually, the commissioner shall pay to each claimant the excess, if any, of the statewide and local share property tax on the homestead for the fiscal year beginning in the calendar year in which the claim is filed over the adjusted property tax of the claimant for the fiscal year, as determined under section 6066(a)(1)*[,]* and (2) *[and (3)]* of this title. The payment shall be made by the latest of: *[July 1]* August 1, for claims filed by April 15; 45 days after the claim is filed, for claims filed after April 15; or 30 days prior to the first education property tax installment date for the claimant’s municipality in the fiscal year which begins in the calendar year in which the claim is filed under section 6068 of this title; or 25 days after the grand list has been transmitted in accordance with section 5404 (b) of this title. *[The preliminary tax adjustment amount determined under this subsection shall be the “subsection (a) amount.”]* *[(b) Final property tax adjustment. In order to correct the preliminary tax adjustment, so that it equals the full income sensitivity property tax adjustment due to the claimant for the prior year, a final property tax adjustment is made as follows:]* *[(1) A claimant shall also be entitled to a credit against his or her income tax liability under chapter 151 of this title. The amount of the credit shall be the excess, if any, of the subsection (a) amount for the current claim year over the subsection (a) amount paid in the prior year. If the credit exceeds the income tax liability, the difference shall be paid to the claimant, without interest.]*

      *[(2) The claimant shall pay to the commissioner the excess, if any, of the subsection (a) amount paid in the prior year over the subsection (a) amount for the current claim year. The payment under this subdivision shall be due on or before the due date for filing the Vermont income tax return, with extension, and shall be subject to the enforcement and collection provisions of chapter 151 of this title, and shall bear interest at the rate determined under section 3108 of this title from the due date for the income tax return, without]* *[extension. Any income tax refund due to a taxpayer shall be reduced by any amount owed by the taxpayer under this subdivision.]*

Sec. 163e. REPEAL

   (a) 32 V.S.A. §§ 3462 (reports by town clerk and appraisers); 4158 (transmission to director, changes, remedy); and 4341 (automatic extensions for filing grand lists) are repealed.

Sec. 163f. ADJUSTMENTS; TRANSITION

   (a) For fiscal year 2003, notwithstanding anything to the contrary in 32 V.S.A. §§ 6066 and 6066a, the amount of property tax adjustment available to claimants shall be paid by the commissioner to each claimant based upon the household income of the claimant for 2001, the grand list values of April 1, 2001, and the education property tax liability of the town school district for fiscal year 2003, and shall not be subject to reconciliation.

Sec. 163g. PREBATE APPROPRIATION

   (a) There is appropriated from the education fund to the department of taxes for fiscal year 2002 the amount of $1,700,000.00 for information system changes and programming required for the administration of Secs. 163a, 163b, 163c, 163d, 163e, and 163f of this act. This appropriation from the education fund shall be deemed to be in accord with the provisions of 16 V.S.A. § 4025, limiting uses and purposes of education fund expenditures.

Sec. 164. Education - small school grants

Grants4,632,403
Source of funds
Education fund4,632,403

   (a) Notwithstanding 16 V.S.A. § 4015(a), the town of Athens is eligible for the small school support grant in the fiscal year 2001. This subsection shall be effective on passage.

Sec. 164a. 16 V.S.A. § 1546(b) is amended to read:

(b) A comprehensive high school shall charge and receive tuition pursuant to section 824 of this title. A comprehensive high school shall be a technical center for the purposes of receiving funding for grants per full-time equivalent student under 16 V.S.A. § 1561, for tryout classes under 16 V.S.A. § 1562, for equipment replacement under 16 V.S.A. § 1564, for incentive grants under 16 V.S.A. § 1566, and for reporting requirements under 16 V.S.A. § 1568 *[except that a comprehensive high school need not report direct and overhead costs]*. Funds received under this section shall be used for support of technical education programs within the comprehensive high school.

Sec. 164b. 16 V.S.A. § 1561 is amended to read:

§ 1561. TUITION REDUCTION

(a) For the purpose of reducing the amount of tuition charged to Vermont residents under section 1552 of this title, technical centers shall receive assistance as provided in this section. In this section,

(1) “Student” means a Vermont secondary student without a diploma regardless of age and regardless of whether the student is enrolled in a high school in Vermont; and

(2) “Full-time equivalent student” means the average of a Vermont school district’s three prior years’ full-time equivalent enrollment of students in the technical center.

(b) A technical center shall receive from the education fund for each full-time equivalent student sent from a school district within Vermont, 100 percent of the per equalized pupil general state support grant and an equivalent amount shall be subtracted from the amount due to the sending district under section 4011 of this title.

(c) *[Annually, each technical center shall receive from the education fund, a ]*Annually, the general assembly shall appropriate funds to pay for a supplemental assistance grant per full-time equivalent student. The amount of the grant shall be equal to *[$2,254,628.00 in 1998 dollars increased annually by the appropriate annual index for state and local government purchases of goods and services, and divided by the number of full-time equivalent students enrolled in all regional technical centers]* 40 percent of the per equalized pupil general state support grant for that year.

Sec. 164c. 16 V.S.A. § 1568(a) is amended to read:

(a) Annually, in accordance with a time line, format and process established by the state board by rule, each technical center shall report its *[direct and overhead]* costs and student enrollment, achievement and performance measures to the commissioner. Technical center financial accounts shall be kept separately from those of the host high school in accordance with rules adopted by the state board which shall establish clear delineation of relevant costs and revenues.

Sec. 164d. REPEAL

(a) 16 V.S.A. §§ 1522(8) and (9) (definitions of technical training “direct costs” and “overhead costs”) and 1567 (overhead costs) are repealed.

Sec. 165. Education - special education: formula grants

Grants63,980,005
Source of funds
Education fund63,980,005

   (a) Notwithstanding the provisions of 16 V.S.A. § 2969 or any other provisions of law, the reimbursements and grants pursuant to 16 V.S.A. § 2967 for fiscal year 2002 costs incurred by school districts shall be paid partially from the fiscal year 2002 appropriation and partially from the fiscal year 2003 appropriation. The fiscal year 2002 appropriation will cover the final reimbursements for fiscal year 2001 with the remainder available for reimbursements for fiscal year 2002 grants and reimbursements. Funds distributed to school districts for fiscal year 2002 expenses but to which the school districts were not entitled based on final reports for fiscal year 2002 shall not be considered as part of the total expenditures for fiscal year 2002 under the 60 percent state funding provision of 16 V.S.A. § 2967, as limited by Sec. 10 of No. 117 of the Acts of 2000. Such funds held by local school districts shall be treated as expenditures in fiscal year 2003.

   (b) The determination of annual special education expenditure targets pursuant to Sec. 10 of No. 117 of the Acts of 2000 shall be made by the commissioner of education for the following fiscal year and announced as part of the determinations made in September and presented to the general assembly pursuant to 16 V.S.A. § 4027(a).

   (c) For the purpose of implementing Sec. 10 (a)(1) of No. 117 of the Acts of 2000, for fiscal year 2002, the annual special education expenditure target shall be set at 10.12 percent.

Sec. 165a. 16 V.S.A. § 4027 is amended to read:

§ 4027. DETERMINATION OF YIELD AMOUNT AND AMOUNTS DUE TO OR FROM THE EDUCATION FUND

* * *

(c) *[For purposes of this calculation, if, by June 1, any school district has failed to adopt a budget for the school year beginning the next July 1, the commissioner shall use the local education spending portion of the school district’s most recently adopted budget. If a union school district or joint contract district of which the school district is a member has failed to adopt a budget by June 1, the commissioner shall use the most recently adopted union or joint contract budget allocated according to the current year’s apportionment, to determine the assessment portion of local education spending. If a school district, union school district or joint contract district subsequently adopts a budget in a different amount,]*

   *[(1) a district which is due money from the fund shall receive the lesser of the amount due based on the former year’s budget or the amount due based on the actual budget voted; and]*

   *[(2) district which is required to pay money into the fund shall pay the greater of the amount due based on the former year’s budget or the amount due based on the actual budget voted.]*

(d) On or before*[,]* June 30, the commissioner of education shall inform each school district which *[has]*, by May 1, voted a budget with local education spending in excess of the general state support grant and for which no petition for reconsideration has been filed, how much it will owe to the education fund or how much it will receive from the fund. If a petition for reconsideration has been filed, or the district has not voted a budget by May 1, and subsequently votes a budget with local education spending in excess of the general state support grant, the commissioner shall inform the district how much it will owe to or receive from the fund within 10 days of receiving a report from the superintendent pursuant to subsection (e) of this section.

(e) Annually, on or before June 1, each superintendent shall report to the department of education, on a form prescribed by the commissioner, each local education budget *[adopted]* which was adopted by May 1 for the following fiscal year by the member districts of the supervisory union and for which no petition for reconsideration has been filed. A superintendent shall report a budget adopted following May 1, to the department of education, between 30 to 40 days following adoption, or, if a petition for reconsideration has been filed, within 10 days of final adoption of the budget.

Sec. 166. EDUCATION - SPECIAL EDUCATION; SUCCESS BEYOND SIX

   (a) Education funds of the appropriation for special education - formula grants, or other funds eligible to be used for matching federal funds - may be used by each supervisory union to participate in the success beyond six program. The purpose of the program is to expand local partnerships to enhance the educational opportunities of students who are at risk of failure in school. The services are to be supplied through contracts with community-based Medicaid providers. The form and substance of the contracts shall be established as part of the overall agreement for the implementation of the program to be executed between the commissioner of education and the secretary of human services.

Sec. 167. Education - state-placed students

Grants10,402,407
Source of funds
Education fund10,402,407

Sec. 168. Education - capital debt service aid

Grants3,482,659
Source of funds
Education fund3,482,659

Sec. 169. Education - transportation

Grants12,458,850
Source of funds
Education fund12,458,850

Sec. 170. EDUCATION - EDUCATION GRANTS

   (a) There is appropriated from the education fund for fiscal year 2002 to the department of education $594,300,000.00 for education grants to school districts. The general state support grants under 16 V.S.A. § 4011, the standard mainstream block grant under 16 V.S.A. § 2961, and the essential early education grant under 16 V.S.A. § 2948(c) shall be included in this amount. Also included in this amount are funds to the department of education for fiscal year 2001 data corrections to education grants to school districts under 16 V.S.A. § 4030 and for a National Teacher of the Year Grant to Middlebury Union High School and a grant in the amount of $5,000.00 to the Rutland High School to defer costs incurred in the school band’s participation in the presidential inauguration of 2001.

Sec. 170a. Sec. 252 of No. 152 of the Acts of 2000 is amended to read:

Sec. 252. FY 2000 SURPLUS ONE-TIME APPROPRIATIONS

* * *

      (46) To the *[department of education]* Vermont state colleges for the *[establishment of a]* “Coming Home” endowment. $100,000

* * *

Sec. 170b. 16 V.S.A. § 4011(a) is amended to read:

(a) Annually, the general assembly shall appropriate funds to pay for a general state support grant for each equalized pupil and a portion of a general state support grant for each adult diploma student. In fiscal year 2002, the general state support grant for each equalized pupil shall be $5,448.00. For each following fiscal year, the general state support grant shall be increased by the most recent cumulative price index, as of December 1, for state and local government purchases of goods and services from fiscal year 2002 through the following fiscal year, as provided through the state’s participation in the New England Economic Project.

Sec. 170c. 16 V.S.A. § 2948(c) is amended to read:

(c) Each school district shall receive an essential early education grant each school year. Grants shall be distributed according to the estimated number of children from three through five years of age. The state board by rule shall encourage coordination of services and may set other terms of the grant. Each district shall be responsible for the remainder of the costs of providing necessary services under section 2956 of this title. Annually, for each following fiscal year, the essential early education grant shall be increased by the most recent cumulative price index, as of December 1, for state and local government purchases of goods and services from fiscal year 2002 through that following fiscal year, as provided through the state’s participation in the New England Economic Project.

Sec. 170d. REPEAL

(a) Sec. 24(a) of No. 60 of the Acts of 1997 (establishing the block grant), as amended in Sec. 100 of No. 71 of the Acts of 1998 and Sec. 32 of No. 49 of the Acts of 1999, is repealed as of July 1, 2002.

Sec. 171. EDUCATION - LOCAL SHARE PROPERTY TAX

   (a) There is appropriated from the education fund for fiscal year 2002 $39,500,000.00 or such other amount to be paid to districts adopting budgets with local education spending in excess of the general state support grant and that are able to raise less than the predictable yield amount. The sum of $36,000,000.00 from the education fund is allocated to fund the fiscal year 2002 predicted yield calculated pursuant to 16 V.S.A. § 4027.

Sec. 172. PREDICTED YIELD FOR FISCAL YEAR 2003 AND BEYOND

(a) There is hereby allocated $36,000,000.00 within the education fund that the commissioner shall utilize in calculating the fiscal year 2003 predictable yield.

   (b) It is the intent of the legislature that, barring further legislative action, the education fund contribution to the yield pool shall remain at $36,000,000.00. This shall enable the predictable yield to grow as grand list values grow.

Sec. 173. [Omitted.]

Sec. 174. State teachers’ retirement system

Personal services8,790,500
Operating expenses150,663
Grants20,446,282
Total29,387,445
Source of funds
General fund20,446,282
Special funds8,941,163
Total29,387,445

Sec. 175. 16 V.S.A. § 1944(c)(12) is amended to read:

(12) Payment of a portion of the cost of health and medical benefits provided by section 1942(p) of this title for retired members shall be made from the pension accumulation fund. The board *[may]* shall pay up to the amount determined by the board to be equal to *[fifty percent (50%)]* eighty percent (80%) of the cost of the applicable standard plan for retired members. The board shall pay an equal dollar amount for eligible retirees regardless of the plan selected. All eligible retirees may select health plan coverage from a range of plans approved by the board. Retired members may authorize deductions to be made from their monthly retirement allowance for the balance of the cost of such benefits *[and the full cost of such benefits for dependents.]* for the retired members and their dependents. The board shall determine annually that part of the cost of the applicable standard plan in excess of fifty percent (50 percent) of the cost for retirees, allocate forty-one and one-half percent (41.5 percent) of that amount to active members, and adjust the members’ contribution rate accordingly. Periodically, the board shall approve the following:

   (A) a standard plan for retirees who are not yet eligible for Medicare, which plan shall provide first dollar coverage for subscribers;

   (B) a standard plan for retirees who are eligible for Medicare, which plan shall provide first dollar coverage for subscribers;

   (C) a range of plans that may be selected by retirees, including the standard applicable plans; and

   *[(D) the cost of health plan coverage to be paid from the fund.]*

   (D) for fiscal year 2002, the applicable standard plan shall not exceed the cost of the $250.00 comprehensive plan offered by the board.

Sec. 176. TAX DEPARTMENT - REAPPRAISAL AND LISTING PAYMENTS

   (a) The amount of $2,320,000.00 in education funds is appropriated in fiscal year 2002 to implement 32 V.S.A. § 4041(a), relating to payments to municipalities for reappraisal costs and 32 V.S.A. § 5405(f), relating to payments of $1.00 per grand list parcel.

Sec. 176a. 16 V.S.A. § 777D. is amended to read:

D. Authorization Proceedings

An interstate district shall authorize the incurring of debts to finance capital projects by a majority vote of the district passed at an annual or special district meeting. Such vote shall be taken by secret ballot after full opportunity for debate, and any such vote shall be subject to reconsideration and further action by the district at the same meeting or at an adjourned session thereof. As an alternative, an interstate district may provide in its articles of agreement that such a vote be conducted by Australian or official balloting under procedures as set forth in the articles of agreement, and that such vote be subject to any method of reconsideration, if any, the interstate district sets forth in the articles of agreement.

Sec. 177. Tax department - homestead property tax income sensitivity adjustments

Grants83,702,004
Source of funds
General fund5,343,272
Transportation fund4,031,009
Education fund74,327,721
Total83,702,004

Sec. 178. Total general education and property tax support 1,213,079,831
Source of funds
General fund287,103,431
Transportation fund4,670,941
Education fund815,094,502
Federal funds95,226,768
Special funds10,005,925
Tobacco fund925,000
Interdepartmental transfer1,053,264
Total1,213,079,831

Sec. 179. University of Vermont

Grants35,058,595
Source of funds
General fund35,058,595

   (a) The commissioner of finance and management shall issue warrants to pay one-twelfth of the appropriation to the University of Vermont on or about the 15th of each calendar month of the year.

(b) Of the above appropriation, $340,000.00 shall be transferred to ESPCoR for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both.

Sec. 180. University of Vermont - Morgan horse farm

Grants1
Source of funds
General fund1

Sec. 181. Vermont public television

Grants613,336
Source of funds
General fund613,336

Sec. 182. Vermont state colleges

Grants20,115,985
Source of funds
General fund20,115,985

   (a) The commissioner of finance and management shall issue warrants to pay one-twelfth of the appropriation to the Vermont state colleges on or about the 15th of each calendar month of the year.

(b) Of the above appropriation, $100,000.00 shall be reserved for use as the state’s fiscal year 2002 contribution toward the growth of the endowment fund for the Vermont state colleges. The state’s funds are to serve as a challenge match to enhance the state colleges’ ability to secure endowment contributions from alumni and other interested parties. The intent is that the fiscal year 2002 appropriation will be the first of five annual appropriations through fiscal year 2006 totaling $500,000.00. The conditions of this challenge match are that the state colleges are required to raise three dollars for each dollar appropriated by the state. A method for accounting for the state colleges’ share has been agreed to between the state colleges and the commissioner of finance and management. Transfers to the state colleges’ endowment fund shall be under the condition that only the interest accruing to the fund will be available for purposes as designated by the board of trustees of the state colleges. By June 30, 2006, any remaining state appropriations designated for the state colleges’ endowment fund that have not been matched by the state colleges shall revert to the general fund. The funds appropriated for this purpose shall be retained by the state.

(c) Of the above appropriation, $393,000.00 shall be transferred to the Vermont Manufacturing Extension Center for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both.

Sec. 183. Vermont state colleges - practical nursing schools

Grants578,232
Source of funds
General fund578,232

Sec. 184. Vermont interactive television

Grants868,947
Source of funds
General fund868,947

Sec. 185. Vermont student assistance corporation

Grants15,841,811
Source of funds
General fund15,841,811

   (a) Not less than 100 percent of grants shall be used for direct student aid.

Sec. 186. New England higher education compact

Operating expenses77,809
Source of funds
General fund77,809

Sec. 186a. Education commission of the states

Operating expenses 39,600
Source of funds
General fund 39,600

Sec. 187. Total higher education and other73,154,716
Source of funds
General fund73,154,716

Sec. 188. Natural resources - agency of natural resources - administration,

management and planning

Personal services2,619,783
Operating expenses1,434,578
Grants40,000
Total4,094,361
Source of funds
General fund2,227,105
Federal funds103,500
Special funds884,934
Interdepartmental transfer878,822
Total4,094,361

Sec. 189. Connecticut river watershed advisory commission

Grants40,500
Source of funds
General fund25,000
Federal funds15,500
Total40,500

Sec. 190. Citizens’ advisory committee on Lake Champlain’s future

Grants10,000
Source of funds
General fund10,000

Sec. 191. Natural resources - state land local property tax assessment

Operating expenses1,215,783
Source of funds
General fund691,468
Transportation fund262,815
Interdepartmental transfer261,500
Total1,215,783

   (a) An amount of up to $15,000.00 of the available carry forward funds from the fiscal year 2000, natural resources - state local property tax assessment appropriation, shall be available for transfer to the use tax reimbursement fund for payment in accordance with Sec. 40(a) of this act.

Sec. 192. Environmental conservation - commissioner’s office

Personal services974,463
Operating expenses97,922
Total1,072,385
Source of funds
General fund374,954
Federal funds536,191
Special funds161,240
Total1,072,385

Sec. 193. Environmental conservation - environmental assistance

Personal services1,256,431
Operating expenses172,285
Grants25,000
Total1,453,716
Source of funds
General fund405,135
Federal funds247,318
Special funds801,263
Total1,453,716

Sec. 194. Environmental conservation - office of air and waste management

Personal services4,694,767
Operating expenses1,114,103
Grants508,500
Total6,317,370
Source of funds
General fund406,554
Transportation fund39,320
Federal funds2,486,185
Special funds3,235,311
Interdepartmental transfer150,000
Total6,317,370

Sec. 195. Environmental conservation - office of water programs

Personal services9,623,351
Operating expenses1,213,897
Grants2,711,345
Total13,548,593
Source of funds
General fund3,620,274
Transportation fund177,264
Federal funds6,711,178
Special funds2,749,877
Interdepartmental transfer290,000
Total13,548,593

   (a) The establishment of two (2) new classified positions – one (1) Environmental Scientist III and one (1) Environmental Analyst III - is authorized in fiscal year 2002.

Sec. 196. Environmental conservation - various environmental special funds

Grants4,838,362
Source of funds
Special funds4,838,362

Sec. 197. Fish and wildlife - support and field services

Personal services8,719,408
Operating expenses4,295,870
Grants237,450
Total13,252,728
Source of funds
Fish and wildlife fund12,702,728
Interdepartmental transfer550,000
Total13,252,728

   (a) The establishment of five (5) new classified positions - Fish and Wildlife Warden - is authorized in fiscal year 2002.

Sec. 198. Fish and wildlife - land acquisition

Operating expenses66,785
Source of funds
Fish and wildlife fund66,785

Sec. 199. Fish and wildlife - watershed improvement

Grants45,000
Source of funds
Fish and wildlife fund45,000

Sec. 200. Fish and wildlife - wildlife management area projects

Operating expenses93,000
Source of funds
Fish and wildlife fund55,500
Fish and wildlife/federal funds37,500
Total93,000

Sec. 201. Fish and wildlife - conservation

Operating expenses667,000
Source of funds
Fish and wildlife/federal funds667,000

Sec. 202. Fish and wildlife - recovery planning

Personal services103,870
Source of funds
Fish and wildlife fund103,870

Sec. 203. Forests, parks and recreation - administration

Personal services656,956
Operating expenses317,239
Grants1,041,300
Total2,015,495
Source of funds
General fund721,995
Federal funds945,000
Special funds348,500
Total2,015,495

   (a) One-half of federal land and water conservation funds (LWCF) received by the state shall be allocated for competitive grants for recreation projects at the community level.

Sec. 204. Forests, parks and recreation - lands administration

Personal services332,230
Operating expenses39,000
Total371,230
Source of funds
General fund371,230

Sec. 205. Forests, parks and recreation - forest highway maintenance

Personal services2,539
Operating expenses404,000
Grants200,000
Total606,539
Source of funds
Transportation fund606,539

Sec. 206. Forests, parks and recreation - forestry

Personal services3,919,753
Operating expenses584,100
Grants380,000
Total4,883,853
Source of funds
General fund3,004,653
Transportation fund21,500
Federal funds1,184,000
Special funds386,700
Interdepartmental transfer282,000
Expendable trust5,000
Total4,883,853

Sec. 207. Forests, parks and recreation - rural community fire protection

Personal services7,000
Operating expenses12,000
Total19,000
Source of funds
Federal funds19,000

Sec. 208. Forests, parks and recreation - senior community service employment

Personal services36,000
Operating expenses2,000
Total38,000
Source of funds
Federal funds38,000

Sec. 209. Forests, parks and recreation - state parks

Personal services3,782,592
Operating expenses2,026,400
Grants25,000
Total5,833,992
Source of funds
Special funds5,824,992
Interdepartmental transfer9,000
Total5,833,992

Sec. 210. Forests, parks and recreation - youth conservation corps

Personal services440,295
Operating expenses42,800
Grants570,000
Total1,053,095
Source of funds
Special funds596,495
Interdepartmental transfer456,600
Total1,053,095

Sec. 211. Forests, parks and recreation - snowmobile trails program

Personal services11,500
Grants488,500
Total500,000
Source of funds
Special funds500,000

Sec. 212. Environmental board and district commissions – Act 250

Personal services1,798,577
Operating expenses345,000
Total2,143,577
Source of funds
General fund838,575
Special funds1,305,002
Total2,143,577

Sec. 213. Environmental board and district commissions - waste facilities panel

Personal services113,701
Operating expenses11,299
Total125,000
Source of funds
Special funds125,000

Sec. 214. Water resources board

Personal services277,957
Operating expenses47,370
Total325,327
Source of funds
General fund325,327

Sec. 215. Green up

Grants8,550
Source of funds
Special funds8,550

Sec. 216. Total natural resources64,743,111
Source of funds
General fund13,022,270
Transportation fund1,107,438
Federal funds12,285,872
Fish and wildlife fund12,973,883
Fish and wildlife/federal funds704,500
Special funds21,766,226
Interdepartmental transfer2,877,922
Expendable trust5,000
Total64,743,111

Sec. 217. Commerce and community development - agency of commerce and community development - administration and management planning

Personal services1,067,570
Operating expenses344,628
Total1,412,198
Source of funds
General fund1,346,539
Interdepartmental transfer65,659
Total1,412,198

   (a) The establishment of one (1) new classified position - Information Technology Manager - is authorized in fiscal year 2002.

Sec. 218. Housing and community affairs

Personal services2,138,502
Operating expenses319,896
Grants7,768,085
Total10,226,483
Source of funds
General fund1,408,692
Federal funds4,554,475
Special funds4,263,316
Total10,226,483

Sec. 219. Historic sites operations

Personal services475,000
Operating expenses337,120
Improvements200,000
Total1,012,120
Source of funds
General fund410,980
Special funds401,140
Interdepartmental transfer200,000
Total1,012,120

Sec. 220. Community development block grants

Grants8,563,070
Source of funds
Federal funds8,563,070

   (a) Community development block grants will carry forward until expended.

Sec. 221. Economic development

Personal services937,557
Operating expenses475,160
Grants1,421,594
Total2,834,311
Source of funds
General fund2,533,673
Federal funds70,000
Special funds230,638
Total2,834,311

Sec. 222. Vermont training program

Personal services64,287
Operating expenses17,791
Grants565,135
Total647,213
Source of funds
General fund607,213
Special funds40,000
Total647,213

Sec. 223. Government marketing assistance center

Personal services276,546
Operating expenses62,944
Total339,490
Source of funds
General fund90,667
Federal funds248,823
Total339,490

Sec. 224. Tourism and marketing

Personal services2,993,470
Operating expenses1,286,244
Grants807,284
Total5,086,998
Source of funds
General fund4,851,564
Interdepartmental transfer235,434
Total5,086,998

   (a) In cooperation with the department of fish and wildlife, the department shall develop and implement an advertising and marketing program to promote fishing and hunting activities in the state of Vermont. The department shall provide to the general assembly a report on its implementation of the directives of this section on or before December 15, 2001.

   (b) Of the above appropriation, $235,000.00 shall be for the film commission and $110,000.00 shall be provided for Vermont Chamber of Commerce mailings.

Sec. 224a. 3 V.S.A. § 2502 is amended to read:

§ 2502. MARKET VERMONT PROGRAM

   The market Vermont program is hereby created. It shall be *[administered]* directed jointly by the secretary and commissioner. *[All decisions concerning the program shall be made by]* Notwithstanding chapters 13 and 14 of Title 3 or any other contrary provision of law, the secretary and the commissioner shall have the authority to enter into one or more written contracts with persons or entities for the administration of the program. Any such contract shall provide for the sufficient oversight, review, and control by the secretary and by the commissioner, or their designees, to ensure that the program purposes are achieved. Where they deem it appropriate, the secretary and commissioner may enter into a memorandum of understanding concerning the operation of the program or concerning the contracting with persons or entities for the administration of the program. The secretary and commissioner may issue rules to carry out the purposes of this subchapter.

Sec. 225. Vermont life

Personal services625,000
Operating expenses200,000
Total825,000
Source of funds
Enterprise funds825,000

Sec. 226. Vermont economic development authority

Grants271,990
Source of funds
General fund271,990

Sec. 227. Vermont council on the arts

Grants534,707
Source of funds
General fund534,707

Sec. 228. Vermont symphony orchestra

Grants110,957
Source of funds
General fund110,957

Sec. 229. Vermont historical society

Grants265,470
Source of funds
General fund265,470

Sec. 230. Vermont housing and conservation trust fund

Grants22,901,532
Source of funds
Federal funds11,296,320
Special funds11,605,212
Total22,901,532

Sec. 230a. 32 V.S.A. § 586 is amended to read:

§ 586. APPLICATION

   The provisions of this subchapter shall not apply to funds established to account for proceeds from the sale of bonds, to the general fund, the transportation fund, the fish and wildlife fund, the tobacco litigation settlement fund, or to any federal revenue funds, trust funds, enterprise funds, internal service funds, or agency funds, or to public service enterprise funds established to implement provisions of sections 211 and 212a through 212f of Title 30; the budget stabilization reserves created by sections 308 and 308a of this title; the low-level radioactive waste fund created by section 7013 of Title 10; the Vermont campaign fund created by section 2856 of Title 17*[; or]* the education fund created by section 4025 of Title 16; or the Vermont housing and conservation trust fund created by section 312 of Title 10.

Sec. 231. Vermont council on the humanities

Grants150,000
Source of funds
General fund150,000

Sec. 232. Total commerce and community development 55,181,539
Source of funds
General fund12,582,452
Federal funds24,732,688
Special funds16,540,306
Interdepartmental transfer501,093
Enterprise funds825,000
Total55,181,539

Sec. 233. TRANSPORTATION

   (a) Transportation fund appropriations made available for the agency of transportation in cooperation with the federal government shall be available until expended and shall not revert.

(b) The commissioner of finance and management shall maintain and control transportation appropriations in separate state and federal appropriations, as needed, and may incur overdrafts in personal services and operating expenses pending distribution of payroll and employee charges to other appropriations.

Sec. 234. Transportation - finance and administration

Personal services7,090,833
Operating expenses1,315,167
Grants300,000
Total8,706,000
Source of funds
Transportation fund7,900,000
Federal funds806,000
Total8,706,000

Sec. 235. Transportation and arbitration boards

Personal services57,320
Operating expenses22,680
Total80,000
Source of funds
Transportation fund80,000

Sec. 236. Transportation - maintenance state system

Personal services23,408,606
Operating expenses23,401,250
Land, structures & improvements150,000
Total46,959,856
Source of funds
Transportation fund46,459,856
Federal funds500,000
Total46,959,856

Sec. 237. Transportation - aviation program

Personal services1,391,195
Operating expenses432,010
Grants35,000
Land, structures & improvements6,941,795
Total8,800,000
Source of funds
Transportation fund2,905,000
Federal funds5,895,000
Total8,800,000

Sec. 238. Transportation - project development and special projects unit

Personal services24,761,092
Operating expenses7,533,114
Grants6,385,515
Land, structures & improvements105,764,495
Total144,444,216
Source of funds
Transportation fund26,392,007
Federal funds117,211,187
Local match841,022
Total144,444,216

   (a) Notwithstanding any other provision of law, the secretary of transportation, with the approval of the secretary of administration, shall transfer any unexpended balances carried forward into fiscal year 2002 in prior year transportation appropriations allocated for multi-modal projects into this appropriation.

   (b) The schedule for interstate bridge project, Bolton, IM 089-2(29), Page 1, is amended as follows: by deleting all construction, total, state and federal funds.

(c) Of the above appropriation, $300,000.00 in transportation funds is allocated to the Brattleboro multi-modal project for the state match requirement for construction.

(d) Of the above appropriation, $610,000.00 in transportation funds is allocated to the enhancement program for projects previously approved by the secretary of transportation.

Sec. 239. Transportation - rail program

Personal services3,651,238
Operating expenses227,243
Land, structures & improvements16,947,116
Total20,825,597
Source of funds
Transportation fund13,257,435
Federal funds7,568,162
Total20,825,597

Sec. 240. Transportation - technical services

Personal services4,605,999
Operating expenses1,532,967
Total6,138,966
Source of funds
Transportation fund3,165,200
Federal funds2,973,766
Total6,138,966

Sec. 241. Transportation - Vermont transportation authority

Personal services96,886
Operating expenses575,600
Grants1,482,460
Total2,154,946
Source of funds
Transportation fund490,989
Federal funds1,663,957
Total2,154,946

Sec. 242. Transportation - rest areas

Personal services1,388,800
Land, structures & improvements9,933,004
Total11,321,804
Source of funds
Transportation fund396,884
Federal funds10,924,920
Total11,321,804

Sec. 243. Transportation - policy and planning

Personal services2,321,787
Operating expenses1,102,471
Grants14,257,360
Total17,681,618
Source of funds
Transportation fund5,329,787
Federal funds12,351,831
Total17,681,618

(a) The establishment of one (1) new classified position - Administrative Assistant B - is authorized in fiscal year 2002.

Sec. 244. Transportation - central garage fund

Personal services2,566,255
Operating expenses8,957,950
Total11,524,205
Source of funds
Internal service funds11,524,205

Sec. 245. Transportation - buildings

Personal services400,000
Land, structures & improvements1,165,000
Total1,565,000
Source of funds
Transportation fund1,565,000

Sec. 246. Transportation - town highway grants

Grants23,857,744
Source of funds
Transportation fund23,857,744

   (a) The above appropriation is authorized notwithstanding 19 V.S.A. § 306(a).

Sec. 247. Transportation - town highway structures

Grants3,494,500
Source of funds
Transportation fund3,494,500

   (a) Of the above appropriation, $300,000.00 shall be for the replacement and maintenance costs of town highway culverts that were identified in the agency of transportation report, “Town Culverts”, pursuant to Sec. 41w of No. 18 of the Acts of 1999.

Sec. 248. Transportation - town highway emergency fund

Grants750,000
Source of funds
Transportation fund750,000

Sec. 249. Transportation - town highway class 1 supplemental grants

Grants128,750
Source of funds
Transportation fund128,750

Sec. 250. Transportation - town highway bridges

Personal services3,582,000
Operating expenses533,000
Grants1,370,000
Land, structures & improvements14,451,186
Total19,936,186
Source of funds
Transportation fund5,403,007
Federal funds12,976,027
Local match1,557,152
Total19,936,186

   (a) Of the funds appropriated above, $1,000,000.00 in state transportation funds shall be allocated to the town highway bridge demonstration program. The purpose of the demonstration program is to ascertain whether a state-only funded grant program, whereby the town manages the project, can reduce the amount of time such projects typically take from initial design to completion.

(b) Eligible bridges. Both short structures, those under 20 feet in length and long structures, those greater than 20 feet in length, located on the town highway system, shall be eligible for this program.

(c) Grants. The secretary shall make separate grant awards to towns for the purpose of completing preliminary engineering and permitting for town highway bridges and for construction of such bridges. Any Vermont municipality shall be an eligible applicant. The agency of transportation shall develop an application for this demonstration program and notify eligible participants of its availability. Applications from municipalities are due July 15, 2001. For short structure spans, those 20 feet and less, the municipality will provide preliminary engineering and construction cost estimates and for long structure spans, those 20 feet and greater, the agency of transportation shall provide technical advice for preliminary engineering and construction costs. Priority shall be given to those projects in the capital program and project development plan. Projects shall be selected based upon their ability to be built quickly. A goal of the program is to maximize the number of projects funded. Grant awards shall be made to municipalities no later than August 1, 2001. Construction grants shall be awarded in fiscal year 2002 to those towns that are ready to proceed to construction, provided that there are sufficient funds within the above appropriation.

(d) Report. The secretary shall report to the legislature on January 15, 2002 on the activities undertaken and the progress of the Town Highway Bridge Demonstration Program.

Sec. 251. Transportation - Vermont local roads program

Grants398,000
Source of funds
Transportation fund283,000
Federal funds115,000
Total398,000

Sec. 252. Transportation - town highway class 2

Grants4,248,750
Source of funds
Transportation4,248,750

   (a) Notwithstanding any other provision of law, the secretary of transportation shall transfer any unexpended balances carried forward into fiscal year 2002 in prior year transportation appropriations allocated for town highways - class 2 rehabilitation into this appropriation.

   (b) Notwithstanding any other provision of law, of the amount appropriated in this section, $88,000.00 shall be allocated to the town of Hyde Park for roadway improvements to town highway # 7 which leads to the Green River Reservoir State Park.

Sec. 253. Department of motor vehicles

Personal services10,553,267
Operating expenses5,227,691
Grants169,000
Total15,949,958
Source of funds
Transportation fund15,400,000
Federal funds549,958
Total15,949,958

Sec. 254. Total transportation348,966,096
Source of funds
Transportation fund161,507,909
Federal funds173,535,808
Local match2,398,174
Internal service funds11,524,205
Total348,966,096

Sec. 255. ADDITIONAL TRANSPORTATION FUND REVENUE

   (a) The transportation funds in this act are appropriated, notwithstanding Sec. 33 of No. 154 of the Acts of 2000.

Sec. 256. Debt service - general

Interest
Bonded debt22,005,182
Total interest22,005,182
Principal
State of Vermont
Series XXXII1,657,710
Series XXXIII3,552,000
Series XXXIV1,205,000
Series XXXV713,227
Series XXXVI1,710,000
Series XXXVII6,850,000
Series XXXVIII670,000
Series XXXIX3,800,500
Series XL1,866,620
Series XLI3,445,500
Series XLII3,160,000
Series XLIV2,000,000
Series XLV790,000
Series XLVI1,401,237
Series XLVII790,000
Series XLVIII3,196,690
1998 Series C1,370,706
1998 Series D1,530,000
1999 Series A1,685,000
1999 Series B500,000
Total principal41,894,190
Total debt service63,899,372
Source of funds
General fund63,899,372

Sec. 257. Debt service - transportation

Interest841,689
Principal
Series XXIX148,000
Series XXX70,000
Series XXXI740,000
Series XXXII630,000
Series XXXIII50,000
Series XXXIV199,500
Series XXXV69,500
Series XXXVI98,764
Series XXXVII28,308
1998 Series C34,294
Total principal2,068,366
Total debt service2,910,055
Source of funds
Transportation fund2,910,055

Sec. 258. Debt service - rental payments

Interest959,385
Principal
1998 Series A1,120,000
1998 Series B310,000
Total principal1,430,000
Total debt service2,389,385
Source of funds
Special funds2,389,385

Sec. 259. Debt service - job zones

Operating expenses59,789
Source of funds
General fund59,789

Sec. 260. Total debt service69,258,601
Source of funds
General fund63,959,161
Transportation fund2,910,055
Special funds2,389,385
Total69,258,601

Sec. 260a. FISCAL YEAR 2001 GENERAL FUND TRANSFER

(a) The amount of $5,510,000.00 is transferred from the general fund to the transportation fund and this amount of transportation fund appropriations shall not be included in the calculation of the transportation fund budget stabilization reserve requirement for fiscal year 2002 or 2003 under 32 V.S.A. § 308a(b), nor in the calculation of allowable transportation fund appropriations for fiscal year 2002 or 2003 under Sec. 41x of No. 18 of the Acts of 1999, as amended by Sec. 38 of No. 156 of the Acts of 2000, nor in the calculation of the transfer requirements for fiscal year 2002 or 2003 of the transportation equipment replacement account of the central garage fund under 19 V.S.A. § 13(c), nor shall fiscal year 2001 transportation funds surpluses be included in the calculation of transportation fund revenues for the purposes of Sec. 33 of No. 154 of the Acts of 2000.

Sec. 260b. GENERAL FUND FISCAL YEAR 2001 ONE-TIME APPROPRIATIONS; LEGISLATIVE BRANCH; EFFECTIVE UPON PASSAGE

   (a) The following amounts are appropriated from the general fund to the referenced entities as indicated in fiscal year 2001:

      (1) To the joint fiscal committee to support costs associated with the analysis of Act 60 alternatives as well as other consultant fees; 20,000

      (2) To the legislature to support expenses of the 2001 legislative session:

       1,000,000

Sec. 260c. GENERAL FUND FISCAL YEAR 2001 ONE-TIME APPROPRIATIONS: EFFECTIVE UPON PASSAGE

   (a) The following amounts are appropriated from the general fund to the referenced departments, and are effective upon passage of this bill:

      (1) To the department of agriculture, food and markets, for the West Nile vectoring program; 200,000

      (2) To the agency of human services for substance abuse treatment costs at Maple Leaf Farm; 125,000

      (3) To the Vermont fire service training council to pay for carry forward bills and support costs associated with training activities; 125,000

      (4) To the agency of commerce and community development for an accumulated deficit in historic sites: 120,000

(5) To the Vermont state colleges to complete initial implementation of the VSC technology upgrade: 640,000

(6) To the University of Vermont for the following expenditures: $195,000 for agricultural and environmental testing; $150,000 for spatial analysis laboratory; $200,000 for nursing patient simulation classroom; 545,000

      (7) To the Vermont student assistance corporation to purchase software for guidance services: 300,000

      (8) To the defender general, assigned counsel, to pay fiscal year 2001 carry forward bills; 342,000

      (9) To the defender general, public defense, to pay fiscal year 2001 carry forward bills; 132,000

      (10) To the state’s attorney, to pay fiscal year 2001 carry forward bills;

263,000

Sec. 260d. GENERAL FUND TRANSFER REPEAL

(a) Sec. 59a of Act 11 of 2001 is hereby repealed.

Sec. 260e. Sec. 255 of No. 152 of the Acts of 2000 is amended to read:

Sec. 255. GENERAL FUND TRANSFERS AND APPROPRIATIONS

* * *

   (b) Notwithstanding any other provisions of law, the fiscal year 2001 unreserved undesignated general fund balance on a budgetary basis as determined by the commissioner of finance and management on July 31, 2001 is hereby transferred and appropriated as available in the following order:

      (1) First, the necessary portion of the balance shall be transferred to the general fund budget stabilization reserve to attain its statutory maximum.

      (2) Second, an amount not to exceed $640,000 of the balance may be transferred to the transportation fund budget stabilization reserve to attain its statutory maximum.

      (3) Third, an amount not to exceed $3,000,000 is hereby transferred to the Vermont health access trust fund in fiscal year 2001 to provide funds for fiscal year 2002 appropriations.

      (4) Fourth, an amount not to exceed $12,000,000 is hereby transferred to the general bond fund in fiscal year 2001 to reduce any authorized but unissued general obligation bonds.

      (5) Fifth, an amount not to exceed $1,000,000 is hereby transferred to the human service caseload reserve fund.

      (6) Sixth, an amount not to exceed $2,000,000 shall be prorated equally and appropriated as follows: to the department of public safety for vehicle fleet replacement and to the office of the treasurer, for deposit into the higher education endowment fund.

      (7) Seventh, an amount not to exceed $7,000,000 is hereby transferred to the Vermont health access trust fund to provide resources to balance the fund in fiscal year 2003.

   (c) Any remaining fund balance after subsection (b) of this section shall be transferred to the general fund surplus reserve established in Sec. 277(5) of Act No.147 of the Acts of 1998, as amended by Sec. 88 of Act No. 1 of the Acts of 1999.

Sec. 261. FISCAL YEAR 2002 GENERAL FUND TRANSFER

(a) The amount of $15,750,000.00 is transferred from the general fund to the transportation fund and this amount of transportation fund appropriations shall not be included in the calculation of the transportation fund budget stabilization reserve requirement for fiscal year 2002 or 2003 under 32 V.S.A. § 308a(b), nor in the calculation of allowable transportation fund appropriations for fiscal year 2002 or 2003 under Sec. 41x of No. 18 of the Acts of 1999, as amended by Sec. 38 of No. 156 of the Acts of 2000, nor in the calculation of the transfer requirements for fiscal year 2002 or 2003 of the transportation equipment replacement account of the central garage fund under 19 V.S.A. § 13(c).

(b) The amount of $6,500,000 is transferred from the general fund to the education fund in fiscal year 2002 for a one-time increase to the general state support grant.

Sec. 261a. GENERAL FUND FISCAL YEAR 2002 ONE-TIME APPROPRIATIONS; LEGISLATIVE AND JUDICIAL BRANCH

   (a) The following amounts are appropriated from the general fund to the referenced entities as indicated in fiscal year 2002:

      (1) To the joint fiscal committee to provide resources for technical and consultant assistance; 28,000

      (2) To the joint fiscal committee for the purpose of hiring an independent consultant with expertise in state correctional departments to review Vermont’s department of corrections, utilizing benchmark data from other states to gauge efficiency and make recommendations as to alternative approaches to delivering services. The selection of the independent consultant and the work plan and timing of the report that the consultant is to produce shall be approved by the joint fiscal committee. The legislative council shall assist the joint fiscal office in oversight and development of the contract and consultant’s product; 125,000

      (3) To the legislature for support of the efforts of the North East Legislative Association on Prescription Drug Pricing; 45,000

      (4) To the legislative council to fund a study on land use implications of tax policy changes as specified in Sec. 40a of this act. 20,000

Sec. 261b. GENERAL FUND FISCAL YEAR 2002 ONE-TIME APPROPRIATIONS

   (a) The following amounts are appropriated from the general fund to the referenced departments in fiscal year 2002. Said departments shall present an expenditure plan to the secretary of administration.

      (1) To the department of agriculture, foods and markets for the Lake Champlain conservation reserve enhancement program; 600,000

      (2) To the department of agriculture, food and markets for a competitive grants program for state fair capital projects; 180,000

      (3) To the department of agriculture, food and markets for the Vermont farm labor service cooperative to support activities of the cooperative; 75,000

      (4) To the department of agriculture, food and markets for farm youth initiative; 35,000

      (5) To the department of agriculture, food and markets to develop a livestock industry development program as a temporary, one-year catalyst to achieve the goals of maintaining and improving the in-state capacity for commercial processing of Vermont-raised livestock, and supporting the development of strategies that address the long-term infrastructure, training, and technical assistance needs of the livestock industry by providing grants to producers, slaughterhouse operators, and processors for business planning, and to address critical infrastructure needs.  These funds may be matched with any available federal funds; 200,000

      (6) To the department of agriculture, food and markets for a grant to establish an organization of Vermont holiday tree growers; 30,000

(7) To the department of agriculture, food and markets to establish a cattle health and quality assurance program that emphasizes education, testing, and control of Johne’s disease; 256,600

      (8) To the department of agriculture, food and markets for costs of the “two-plus-two” agriculture bachelor’s degree program at Vermont technical college and the University of Vermont; 134,800

      (9) To the department of health for a grant to the Burlington health center to aid transition to cost-based reimbursement; 100,000

      (10) To the department of PATH for Medicaid expenses. It is anticipated that these funds will not be needed in fiscal year 2003 as a result of pharmacy cost control measures. In addition to these state funds, $630,000 federal funds are appropriated; 370,000

      (11) To the agency of human services for a grant to the Lamoille County People in Partnership for wrap-around services; 300,000

      (12) To the agency of human services central office for a grant to Prevent Child Abuse – Vermont for a comprehensive health education and violence prevention curriculum for seventh and eighth grade students; 60,000

      (13) To the agency of human services for a grant to the Rutland Area Prevention Coalition; 45,000

      (14) To the agency of human services central office to be used to provide a grant to the Project Against Violent Encounters for a statewide pilot project to prevent substance abuse and a youth mentoring program; 35,000

      (15) To the department of health to support a contact to carry out the purposes of Sec. 123c of this act relating to federally-qualified health centers. The department of health shall report to the general assembly on or before January 1, 2002 identifying the funds necessary to carry out the purpose of this section in fiscal year 2003; 160,000

      (16) To the department of developmental and mental health services to provide funding for the self-determination program. The department and the program providers shall work collaboratively to seek other grant funding. Should grant funding become available to support the self-determination program in fiscal year 2002, the funds appropriated in this section shall not be expended, but shall revert to the general fund. In addition to these state funds, $150,000 federal funds are appropriated; 150,000

      (17) To the department of fish and wildlife to provide scholarships to the green mountain conservation camps at Buck Lake and Lake Bomoseen; 1,500

      (18) To the department of buildings and general services for technical assistance for the dry hydrant program; 30,000

      (19) To the secretary of administration for the Lake Champlain basin science center; 100,000

      (20) To the department of fish and wildlife to provide nonmotorized boat access; 50,000

      (21) To the agency of natural resources, department of forests, parks and recreation for state park maintenance and to the department of fish and wildlife for facility improvements; 1,000,000

      (22) To the department of buildings and general services to reimburse the BFA Fairfax school district for expenses incurred in fitting up an emergency shelter included in previous school renovations; 53,100

      (23) To the department of buildings and general services to purchase and transfer land and a conservation easement at Chimney Corners in Colchester; 320,000

      (24) To the Town of Peru for the town green project. This appropriation shall be matched on a one-for-one basis by the town; 70,000

      (25) To the department of buildings and general services for a grant to the Brattleboro arts initiative for the Latchis theatre project; 300,000

      (26) To the Vermont council on the arts for a pass-through grant to the Vermont Philharmonic; 17,000

      (27) To the department of aging and disabilities for the Castleton area senior citizens organization for the costs of complying with requirements imposed by the agency of natural resources; 30,000

      (28) To the department of environmental conservation for watershed and stormwater-related initiatives; 300,000

      (29) To the defender general to establish three serious felony units; 245,000

      (30) To the department of employment and training for deposit into the workforce training fund. Of this appropriation, up to $330,000 shall be transferred to the agency of commerce and community development for use by the Vermont training program; 1,000,000

      (31) To the department of education for a grant to the Vermont Center For the Book for early reading initiatives; 50,000

(32) To the department of education for support of debate and forensic speaking programs; 17,000

(33) To the department of education to support strategies to recruit teachers into the profession, including print materials and internet recruitment service that attract the best students and mid-career professionals to education careers in Vermont schools; 45,000

      (34) To the department of education for the purpose of providing services to children who stutter. The commissioner shall establish a program whereby school principals can apply for funds. The intent is for these funds to be used in individual, group and family therapy settings, including programs outside the school; 75,000

      (35) To the department of public safety for the purpose of transferring responsibility for conducting presale firearm checks pursuant to the Brady Act from Vermont to the National Instant Check System (NICS). The department of public safety shall automate all one-time felony conviction records which are stored at the Vermont crime information center in manual form and transfer these records to NICS for inclusion in the disqualified person files maintained by the NICS. As of February 1, 2002, the responsibility for these checks shall become the sole responsibility of NICS which eliminates all Vermont points of contact and Vermont law enforcement personnel, funding or equipment from being used to perform presale firearm checks. The commissioner shall report to the joint fiscal committee in November 2001 on the progress of said record automation and transfer; 300,000

      (36) To the department of public safety for a new statewide communication system; 2,100,000

      (37) To the department of economic development for a grant to the Vermont enterprise initiative; 75,000

      (38) To the department of forests, parks and recreation to be granted to the Green Mountain Senior Games; 5,000

      (39) To the department of housing and community affairs for downtown redevelopment; 1,000,000

      (40) To the department of housing and community affairs to provide a match for FEMA funds for the NRCS watershed; 230,000

      (41) To the agency of commerce and community development, historic sites operations to provide match for a historic sites coordinator position; 20,000

      (42) To the secretary of administration to serve as an additional state contribution to a fund for the construction of a memorial to World War II veterans; 23,781

      (43) To the office of economic opportunity for the following homelessness projects: Rutland Housing Coalition, the Addison County Community Action Group and the project providing transitional service in St. Albans; 134,000

      (44) To the office of economic opportunity for a one-year grant program to support community-based individual development account savings programs for the purchase or improvement of a home, for postsecondary education, and for entrepreneurial activities. The grantees shall operate the programs in a manner consistent with 33 V.S.A. § 1123 and Sec. 252(a)(35) of No. 152 of the Acts of 2000; 125,000

(45) To the Vermont historical society for grants for the veterans’ day parade and memorial service to be held in Essex; 15,000

      (46) To the state’s attorney for a grant to provide bridge funding for the domestic violence prosecutor and victim advocate for Caledonia, Essex and Orleans counties; 27,000

      (47) To the department of taxes for purchase of a scanner, equipment upgrades and more detailed digital orthophotography for urban areas; 400,000

      (48) To the Vermont department of tourism and marketing for advertising and promotional activities; 1,250,000

(49) To the Vermont housing and conservation trust fund for low income housing needs. Of this amount, $500,000 shall be used for emergency housing consistent with priorities in Sec. 221(a) of No. 152 of the Acts of 2000, and $300,000 for the home access project to be used in a manner consistent with Vermont housing and conservation fund guidelines; 1,750,000

      (50) To the Vermont state colleges for interactive television equipment; 178,000

      (51) To the Vermont state colleges to develop an interactive television site in the town of Hartford; 250,000

      (52) To the department of buildings and general services for a grant to Vermont public television to continue the conversion to a statewide digital broadcast system; 500,000

Sec. 261c. GENERAL FUND FISCAL YEAR 2002 CONTINGENT ONE-TIME APPROPRIATIONS

   The appropriations contained in this section shall occur in the order presented below based on the following contingencies:

   (a) If the appropriations are within the fiscal year 2002 revenue forecast as adopted by the emergency board in July 2001; or

   (b) If the appropriations occur due to fiscal year 2002 revenues becoming available through the close-out process of fiscal year 2002.

(1) To the agency of natural resources, department of forests, parks and recreation for state park maintenance and to the department of fish and wildlife for facility improvements; 1,100,000

(2) To the Vermont housing and conservation trust fund for emergency housing consistent with priorities in Sec. 221(a) of No. 152 of the Acts of 2000; 2,000,000

      (3) To the department of housing and community affairs for downtown redevelopment; 1,000,000

(4) To the department of forests, parks and recreation to acquire public interest in land on Lake Champlain on Isle La Motte; 150,000

(5) To the department of buildings and general services for Vermont public television to continue the conversion to a statewide digital broadcast system; 500,000

      (6) To the military department for air quality improvements to building #5 at Camp Johnson; 150,000

(7) To the office of economic opportunity for a one-year grant program to support community-based individual development account savings programs for the purchase or improvement of a home, for postsecondary education, and for entrepreneurial activities. The grantees shall operate the programs in a manner consistent with 33 V.S.A. § 1123 and Sec. 252(a)(35) of No. 152 of the Acts of 2000; 25,000

Sec. 262. [Omitted.]

Sec. 263. TRANSPORTATION FUND TRANSFER

   (a) The amount of $800,000.00 is transferred from the transportation fund to the downtown transportation and related capital improvement fund established by 24 V.S.A. § 2796 to be used by the Vermont downtown development board for the purposes of the fund.

Sec. 264. [Omitted.]

Sec. 264a. FISCAL YEAR 2001 TRANSPORTATION MAINTENANCE REIMBURSEMENT

   (a) The sum of $4,100,000.00 is appropriated from the transportation fund to the agency of transportation maintenance program as reimbursement for personnel and operating expenses related to winter maintenance in fiscal year 2001.

Sec. 264b. FISCAL YEAR 2002 TRAFFIC CALMING PROGRAM

   (a) The sum of $150,000.00 is appropriated from the transportation fund to the agency of transportation to provide traffic calming planning grants to towns.

(b) Grants awarded under this section shall be for scoping, preliminary engineering, and permitting of traffic calming improvements in municipalities. Any Vermont municipality shall be an eligible applicant. The agency of transportation shall develop an application for this demonstration program and notify eligible participants of its availability.

(c) The agency of transportation shall develop criteria for approval of applications which shall include, but are not limited to: motor vehicle volume and speed; volume of commercial motor vehicles; local use of roadway; and number of vehicular or pedestrian accidents.

(d) Municipalities shall provide matching funds in the amount of 50 percent of the grant award for this program. Grant awards in fiscal year 2002 shall be limited to a maximum of $10,000.00 per municipality.

(e) The secretary shall report to the legislature by January 15, 2002 of the grants awarded under this program and the activities undertaken.

Sec. 264c. TRANSFER REPEAL

   (a) Sec. 38c(c) of No. 11 of the Acts of 2001 is hereby repealed.

Sec. 264d. VERMONT TRANSPORTATION AUTHORITY

29 V.S.A. § 735(a) is amended to read:

   (a) On or before the last day of January in each year the authority shall submit a report of its activities for the preceding *[calendar]* fiscal year to the governor and to the general assembly. Each report shall set forth a complete operating and financial statement covering its operations during the year, and shall contain a full and complete statement of the authority’s anticipated budget and operations for the ensuing year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants; the cost shall be considered an expense of the authority and a copy shall be filed with the state treasurer.

Sec. 265. 16 V.S.A. § 4026(b) is amended to read:

(b) There is hereby created an education fund budget stabilization reserve determined on a budgetary basis and administered by the commissioner of finance and management. Any budgetary basis undesignated education fund surplus occurring at the close of a fiscal year shall be reserved within the education fund budget stabilization reserve, provided that the balance reserved shall not exceed five percent of *[the appropriations from the education fund for ]*the prior fiscal year education fund appropriations, reduced by the amount distributed to school districts by municipalities for netting purposes under § 5402(c) of Title 32, and any additional amounts as may be authorized by the general assembly. Any undesignated education fund surplus and accrued interest remaining after the education fund budget stabilization reserve has been brought to the maximum authorized level shall remain in the education fund. When the general assembly next meets, it may specifically appropriate the use of the undesignated education fund surplus for increased support for education.

Sec. 266. MISCELLANEOUS ACTS OF THE 2001 SESSION

(a) Amounts are hereby appropriated in accordance with the provisions of all house and senate bills which may be enacted by the 2001 session of the general assembly.

Sec. 267. RELATIONSHIP TO CERTAIN EXISTING LAWS

(a) This act shall not be construed in any way to negate or impair the full force and effect of existing laws relating to taxation and the disposition of funds raised thereby, the appraisal of electric plants, lawful rebates from the state treasury, laws relating to unorganized towns and gores, laws relating to trust funds for which the state is trustee or beneficiary, laws relating to care and regulation of state institutions and property, and laws relating to the state agricultural land grant funds.

Sec. 268. OFFSETTING APPROPRIATIONS

(a) In the absence of specific provisions to the contrary in this act, when total appropriations are offset by estimated receipts, the state appropriations shall control, notwithstanding receipts being greater or less than anticipated.

Sec. 269. FEDERAL FUNDS

(a) In fiscal year 2002, the governor, with the approval of the legislature, or the joint fiscal committee if the legislature is not in session, may accept federal funds available to the State of Vermont, including block grants in lieu of or in addition to funds herein designated as federal. The governor, with the approval of the legislature, or the joint fiscal committee if the legislature is not in session, may allocate all or any portion of such federal funds for any purpose consistent with the purposes for which the basic appropriations in this act have been made.

(b) If, during fiscal year 2002, federal funds available to the State of Vermont, and designated as federal in this and other acts of the 2001 session of the Vermont general assembly, are converted into block grants or are abolished under their current title in federal law, and reestablished under a new title in federal law, the governor may continue to accept such federal funds for any purpose consistent with the purposes for which the federal funds were appropriated. The governor may spend such funds for such purposes for no more than 45 days prior to legislative or joint fiscal committee approval. Notice shall be given to the joint fiscal committee without delay if the governor is intending to use the authority granted by this section, and the joint fiscal committee shall meet in an expedited manner to review the governor’s request for approval.

Sec. 270. DEPARTMENTAL RECEIPTS

(a) All receipts shall be credited to the general fund except as otherwise provided and except the following receipts, for which this subsection shall constitute authority to credit to special funds:

   Connecticut river flood control

   Public service department - sale of power

   Tax department - unorganized towns and gores

(b) Notwithstanding other provisions of law, departmental indirect cost recoveries (32 V.S.A. § 6) receipts are authorized, subject to the approval of the secretary of administration, to be retained by the department. All recoveries not so authorized shall be covered into the general fund, or, for agency of transportation recoveries, the transportation fund.

Sec. 271. NEW POSITIONS

(a) Notwithstanding any other provisions of law, the total number of authorized state positions, both classified and exempt, excluding temporary positions as defined in 3 V.S.A. § 311(11), shall not be increased during fiscal year 2002, except for new positions authorized by the 2001 session of the general assembly. Positions in the department of employment and training, operating under the managing-to-payroll program, shall not be subject to this restriction, nor shall nursing positions at the Vermont Veterans’ Home established pursuant to Sec. 4 of No. 145 of the Acts of 2000, nor shall limited service positions approved pursuant to 32 V.S.A. § 5.

Sec. 272. LIMITED SERVICE POSITIONS

(a) The commissioner of personnel may establish up to 30 limited service positions, excluding those limited service positions which are fully funded through federal funds, grants, or other nonstate funds, not to exceed 10 in any one quarter, to meet the short-term supplemental staffing needs of the state. Consistent with the provisions for negotiating the impact of workweeks or schedules under the collective bargaining agreement, and with the approval of the commissioner of personnel, the appointing authority may prescribe, for such positions, full or part-time schedules and flexible work hours as is deemed appropriate. The authorized use of such positions shall be limited to: providing for staffing needs expected to last less than three years, including, but not limited to, capital improvement and transportation projects, or providing an ongoing fill-in capacity, in lieu of hiring temporary employees, in institutions or where it is deemed appropriate to provide coverage for temporary and intermittent absences of regular staff.

(b) Such authorized limited service positions shall not be created until the appointing authority has certified to the secretary of administration that there exists equipment and housing for the positions.

(c) The commissioner of personnel shall notify the joint fiscal office when such positions are established or abolished, and shall report on their usage to the legislature by January 15 each year. Upon request of the commissioner of personnel, the joint fiscal committee may authorize the establishment of positions under this section in excess of 10 during any fiscal quarter.

Sec. 273. APPROPRIATIONS; PROPERTY TRANSFER TAX

(a) This act contains the following amounts appropriated from special funds that receive revenue from the property transfer tax. Expenditures from these appropriations shall not exceed available revenues:

(1) The sum of $224,000.00 is appropriated from the property valuation and review administration special fund to the department of taxes for administration of the use tax reimbursement program;

(2) The sum of $11,088,000.00 is appropriated from the housing and conservation trust fund to the housing and conservation trust board;

(3) The sum of $3,769,920.00 is appropriated from the municipal and regional planning fund as follows:

(A) $2,638,944.00 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b);

(B) $753,984.00 disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b);

(C) $376,992.00 to GIS.

Sec. 274. PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH ACCESS; DRUG CONVICTION RECORD

(a) Notwithstanding any other provision of law, the commissioner of prevention, assistance, transition, and health access may obtain from the Vermont Crime Information Center the record of convictions occurring after August 22, 1996, of any person to the extent that the commissioner has determined, according to criteria established by rule, that such information is necessary to confirm or refute that a felony conviction related to a controlled substance has occurred.

Sec. 275. SPECIAL EDUCATION; STATEWIDE PROGRAMS

(a) Of the appropriation authorized in Sec. 154 of this act, and notwithstanding any other provision of law, an amount not to exceed $2,668,800.00 shall be used by the department of education in fiscal year 2002 as funding for 16 V.S.A. § 2967(b)(2)-(6). In distributing such funds, the commissioner shall not be limited by the restrictions contained within 16 V.S.A. § 2969(c) and (d). In addition to funding for 16 V.S.A. § 2967(b)(2)-(6), up to $100,000.00 may be used by the department of education for its participation in the higher education partnership plan.

Sec. 276. 32 V.S.A. § 5402(c) is amended to read:

(c) Notwithstanding section 426 of Title 16, the treasurer of each municipality shall by December 1 of the year in which the tax is levied and on June 1 of the following year pay to the state treasurer for deposit in the education fund one-half of the municipality’s education property tax liability net payment, as determined by the commissioner of taxes. Payment shall be accompanied by a return prescribed by the director in consultation with the commissioner of education. The municipality may also retain one-half of one percent of the net payment amount to the state, as determined by the director of property valuation and review. *[Any]* Notwithstanding sections 182 and 461 of this title, any remaining balance shall be paid to the school district.

Sec. 277. 16 V.S.A. § 4025(b)(3) is amended to read:

(3) To make payments required under *[sections]* subdivisions 6066(a)(1) and (2) of Title 32 and only that portion attributable to education taxes, as determined by the commissioner of taxes, of payments required under subdivisions 6066(a)(3) and 6066(b) *[of chapter 154]* of Title 32.

* * *

Sec. 278. 1 V.S.A. § 557 is amended to read:

§ 557. DISPOSITION OF MONEYS FROM NATIONAL FORESTS AND

FOREST PRODUCTS

All sums received by this state from the United States, on account of the national forest in this state established under the provision of the Weeks Law, so-called, being an act of congress approved May 23, 1908, and amendments thereto, and codified as 16 U.S.C. Section 500, and all funds received by this state from the United States pursuant to 10 U.S.C. Section 2665 from the sale of forest products produced on land owned or leased by a military department or the United States Department of Transportation shall be distributed as follows:

(1) *[Such funds]* Funds from national forests under the provisions of the Weeks Law shall first be apportioned by the state treasurer among the several school districts in which such national forest is or may be situated, in proportion to the area of such national forest in each, as determined by the forest service of the United States department of agriculture. For purposes of this section, “school district” means a town, city, independent or unified school district;

(2) Funds from the sale of forest products pursuant to 10 U.S.C. Section 2665 shall be apportioned by the state treasurer among the several towns in a manner proportional to the area in each town of the military installation or facility from which the forest products were produced. *[(2)]*(3) The several sums so apportioned to each school district or town shall be paid over by the state treasurer, within 60 days after receipt thereof, to the treasurer of such school district or town. Such sums shall be expended for the benefit of the public schools of such school district or for the benefit of the public roads on the part of the recipient town, in addition to the sums required by law to be raised for such purposes, in such manner as may be determined by appropriations duly made by town meetings in such town or school district.

Sec. 279. 32 V.S.A. § 5412 is added to read:

§ 5412. VALUATION APPEALS AND RECALCULATION OF

EDUCATION TAX LIABILITY

(a)(1) If a listed value is reduced as the result of an appeal, and if the municipality files a written request with the commissioner within 30 days after the date of the settlement agreement, determination, or entry of the final order, the commissioner shall recalculate the municipality’s education property tax liability for the year at issue, in accord with the reduced valuation, provided that:

(A) the reduction in valuation is the result of an appeal under chapter 131 of this title to the director of property valuation and review or to a court, with no further appeal available with regard to that valuation;

(B) the municipality notified the commissioner of the appeal, in writing, within ten days after notice of the appeal was filed under section 4461 of this title; and

(C) as a result of the valuation reduction of the parcel, the value of the municipality’s grand list is reduced at least one percent.

(2) The municipality’s request shall include a copy of the agreement, determination or final order, and any other documentation necessary to show the existence of these conditions.

(b) The commissioner shall allow the municipality a credit for any reduction in education tax liability, to the extent that the municipality has paid that liability, against the next ensuing year’s education tax liability.

(c) If a listed value is increased as the result of an appeal under chapter 131 of this title, whether adjudicated or settled, with no further appeal available with regard to that valuation, the commissioner shall recalculate the municipality’s education property tax for each year at issue, in accord with the increased valuation, and shall assess the municipality for the additional tax at the same time the commissioner assesses the municipality’s education tax liability for the next ensuing year, unless the resulting assessment would be less than $300.00. Payment under this section shall be due with the municipality’s education tax liability for the next ensuing year.

(d) Recalculation of education property tax under this section shall have no effect other than to reimburse or assess a municipality for education property tax changes which result from property revaluation.

Sec. 279a. 32 V.S.A. § 4468 is amended to read:

§ 4468. TRANSMISSION AND RECORD OF DETERMINATION

The director or clerk of the court shall forward by certified mail one copy of the determination to the taxpayer, one copy to the commissioner and one copy to the town clerk, who shall record the same in the book in which the appeal was recorded under section 4461 of this title. The appraisal so fixed by the director or court shall become the basis for the grand list of the taxpayer for the year in which the appeal is taken and, if the appraisal relates to real property, for the two next ensuing years, except that if the real property is enrolled in use value appraisal under chapter 124 of this title, the value of enrolled land, prior to its being equalized, shall be the per acre value set annually by the current use advisory board multiplied by the number of acres enrolled. The appraisal, however, may be changed in the ensuing two years if the taxpayer’s property is materially altered, changed, damaged or if the municipality, city or town in which it is located has undergone a complete revaluation of all taxable real estate.

Sec. 279b. STOWE AND RUTLAND TOWN RECALCULATION

PAYMENT

(a) The commissioner of education shall issue a payment to the town of Stowe in the amount $80,000.00 to compensate the town of Stowe for a change in valuation in education tax liability resulting from a Trapp Family Co-op property tax appeal. The commissioner also shall make a payment to Rutland Town of $31,078.00 for similar successful appeals resulting in a change in valuation in education tax liability. The amount of $111,078.00 in education funds is appropriated in fiscal year 2002 to the department for these purposes.

Sec. 279c. BENNINGTON COUNTY; BOARDS OF CIVIL AUTHORITY; ASSISTANT TOWN CLERKS

(a) As a pilot program, terminating June 30, 2007, if two-thirds of a board of civil authority in any municipality in Bennington County so vote, an assistant town clerk of the municipality shall serve on the board if the town clerk is absent, provided that he or she is a legal voter of the municipality. When serving on the board, assistant clerks shall have the same duties and authority as other members. The term of an assistant town clerk serving on a board of civil authority shall expire February 1 of each odd-numbered year following his or her election, and an assistant clerk may serve consecutive terms on the board.

Sec. 280. YOUTH INITIATIVE; LEGISLATIVE INTENT AND FINDINGS

(a) It is the intent of the general assembly that Secs. 280, 280a, 280b and 280c of this act be the first step in an integrated and comprehensive plan for providing services to at-risk youth in Vermont.

(b) The general assembly finds that:

(1) A comprehensive juvenile justice strategy to assist youth under the age of 21 includes addressing issues concerning health, education, social and rehabilitation services, mental health and developmental disabilities, law enforcement, corrections, and the courts.

(2) A strategy requires integration of laws and policies that affect these areas of state governance and their handling of children in contact with, or at risk of being in, the child welfare, developmental disabilities and mental health, juvenile justice or adult criminal justice systems.

(3) The general assembly’s responsibility for updating juvenile justice practices includes creating a policy framework that provides cross-jurisdictional, coordinated and effective responses for at-risk youth and those who commit delinquent or criminal acts.

(4) A successful reform of current juvenile justice programs requires leadership in the general assembly to bring together state and local agencies, professions, and others in the public and private sectors who provide services to at-risk youth and juvenile offenders.

Sec. 280a. 33 V.S.A. § 5529d(c) is amended to read:

(c) If the court finds that it is in the best interest of the youthful offender to continue the case past the age of 18 *[and if the court finds, based on evidence submitted by the department of social and rehabilitation services, that Title IV-E funds and sufficient state matching funds are available to provide services to the youthful offender]*, it shall make an order continuing the court’s jurisdiction up to the age of 19.

Sec. 280b. YOUTH INITIATIVE; APPROPRIATIONS

(a) To the department of corrections, correctional services, as follows:

(1) The amount of $175,000.00 general funds, in fiscal year 2001, for intensive supervision and service to youth on probation. The establishment of six (6) new classified positions – youthful corrections service specialist – is authorized in fiscal year 2002. Specialists shall not carry a caseload of more than 20 persons. Specialists shall be available for youth under the age of 21; however, preference shall be given to 16 and 17 year olds.

(2) The amount of $87,500.00 tobacco litigation settlement funds, and $148,349.00 federal funds, in fiscal year 2002, for outpatient substance abuse treatment for up to 75 youthful offenders who are served by a youthful corrections service specialist.

(b) To the department of social and rehabilitation services, social services, as follows:

(1) The amount of $87,000.00 general funds, in fiscal year 2001, for the purposes of Sec. 280a of this act.

(2) The amount of $225,000.00 general funds, in fiscal year 2001 and $255,000.00 federal funds, in fiscal year 2002, for the establishment of a 8 to 10-bed, staff-secure residential substance abuse facility for young women in the custody of the department of social and rehabilitation services who have a history of resisting treatment, multiple diagnoses, running away and noncompliant behavior. Placement decisions will give preference to 15, 16 and 17 year olds.

(3) The amount of $150,000.00 general funds, in fiscal year 2002, for distribution to nonprofit organizations which provide community-based, residential services for youth for the purpose of infrastructure improvements. The department shall disburse funds in consultation with the department of corrections, the department of health, the department of developmental and mental health services, the Vermont coalition of residential programs and the Vermont coalition of runaway and homeless youth programs. Up to $100,000.00 of these funds shall be available to existing programs to expand capacity or to serve more difficult populations. Funds may be used for new programs or expansion of existing programs. Funds may be used for down payments on facilities, up to 20 percent of the purchase price for each facility.

(4) The amount of $100,000.00 general funds in fiscal year 2001 to increase “street checker” capacity in the department.

(5) The amount of $120,000.00 general funds in fiscal year 2001 for a grant to the Vermont Coalition of Runaway and Homeless Youth.

(c) To the department of health, alcohol and drug abuse programs, as follows:

(1) The amount of $116,000.00 tobacco litigation settlement funds and $117,333.00 federal funds, in fiscal year 2002, to provide outpatient substance abuse treatment to youth who are at risk and who need intervention to prevent further deterioration.

(2) The amount of $250,000.00 tobacco litigation settlement funds and $250,000.00 federal funds, in fiscal year 2002, to develop community-based programs to promote substance abuse prevention and positive youth development.

Sec. 280c. JOINT LEGISLATIVE STUDY COMMITTEE ON VERMONT

TEENS AND YOUTH SERVICES

(a) A joint legislative study committee on Vermont teens and youth services is created, consisting of three members of the house appointed by the speaker of the house, and three members of the senate appointed by the senate committee on committees.

(b) The joint committee shall review and make recommendations to the general assembly, on or before January 1, 2002, concerning:

   (1) an assessment of the adequacy of services offered by the department of social and rehabilitation services relating to the needs of Vermont teens, including teens in custody and teens not in custody, together with a comparison of Vermont’s services with those offered in other states;

(2) an assessment of the successes and failures of Vermont’s programs for unmanageable 16 and 17 year old adolescents, including a comparison of Vermont’s programs with those of other states;

(3) social worker caseloads in the department of social and rehabilitation services and the capacity of staff to address the needs of children in custody, including Vermont teens in custody, and including a comparison of Vermont’s caseloads with other states;

(4) whether the departments of the agency of human services and other relevant state agencies should develop a plan to increase referrals of Vermont youth and adolescents to the Northlands Job Corps and other organizations offering services to Vermont youth and teens;

(5) the coordination of services for Vermont teens among state agencies, schools, and nongovernmental organizations;

(6) the adequacy of state laws and regulations relating to the needs of Vermont teens;

(7) whether there is staffing capacity within the department of PATH that can be used to address potential staffing issues within the department of social and rehabilitation services;

(8) an assessment of the adequacy of the youth corrections programs and services, including transition, aftercare components and outcomes, funded or amended in this act; a proposed system of evaluation of the effectiveness of youth corrections programs and services funded or amended in this act; and legislative recommendations for future programs and services for youthful offenders and at-risk youth;

(9) an assessment of and report on the placement and supervision of detained or sentenced 16 and 17 year old youth in the custody of the department of corrections and the most appropriate use of the Woodside facility, with such assessment to include an examination of the confinement, community supervision and treatment needs of these youth, and options for service improvement and review of transitional services for youth leaving the custody of the commissioner of social and rehabilitation services; and

(10) any other issue affecting Vermont teens and youth services.

(c) The joint committee shall have the assistance and cooperation of all agencies of the state, which shall provide to the committee such information and analysis as the committee determines is necessary for the performance of its duties. The department of corrections shall report to the joint committee no later than December 1, 2001, regarding the establishment and implementation of the youthful corrections services specialists authorized and funded under Sec. 280b of this act.

(d) The legislative council and the joint fiscal office shall provide professional and administrative support for the committee. Members of the committee shall be entitled to per diem compensation, for no more than six meetings, and reimbursement for expenses in accordance with section 406 of Title 2.

Sec. 280d. DRUG INTERVENTION DOCKET; DISTRICT AND FAMILY

COURT

   (a) The Court Administrator and the Secretary of the Agency of Human Services shall develop a plan for a drug intervention docket within the District Court and the Family Court. In the development of the plan, the Court Administrator and the Secretary shall consult with the Defender General, the Executive Director of the States’ Attorneys Association, the Commissioner of Public Safety, as well as judges and other officials in the judicial branch and officials within the Agency of Human Services. The plan for a drug intervention docket shall be presented to and reviewed by the House and Senate Committees on Appropriations and on Judiciary no later than November 1, 2001. The Committees on Appropriations and on Judiciary shall have the assistance of the staff of the Legislative Council.

   (b) The plan for the drug intervention docket shall include a comprehensive preadjudication and postadjudication program for juveniles and adults focusing on treatment programs. The docket may be established on a statewide basis or in selected courts. The plan, at a minimum, shall incorporate the key components of drug intervention courts and dockets as established by the U.S. Department of Justice, Office of Justice Programs, Drug Courts Program Office, to enable the Vermont drug intervention docket to qualify and apply for federal assistance. Such key components include:

      (1) integration of alcohol and other drug treatment programs with justice system case processing;

      (2) use of a nonadversarial approach, with prosecution and defense counsel promoting public safety while protecting participants’ due process rights;

      (3) early identification of eligible participants and prompt placement in the drug intervention or treatment program;

      (4) access to a continuum of alcohol, drug, and related treatment and rehabilitation services;

      (5) abstinence monitored by frequent alcohol and other drug testing;

      (6) a coordinated strategy to govern drug docket responses to participants’ compliance;

      (7) ongoing judicial interaction with each drug docket participant;

      (8) monitoring and evaluation to measure the achievement of program goals and gauge effectiveness;

      (9) continuing interdisciplinary education to promote effective drug docket planning, implementation and operations;

      (10) forging partnerships among courts, public agencies and community-based organizations to generate local support and enhance drug program effectiveness.

   (c) There is appropriated from the general fund in fiscal year 2002 to the Judiciary the amount of $82,000.00 as a one-time appropriation for the purposes of this section.

Sec. 281. COMMITTEE ON CHARTER SCHOOLS

(a) A committee to study charter schools is hereby created to consist of two parents chosen by the governor; two representatives of business chosen by the governor in consultation with the Vermont Business Roundtable and the Vermont chambers of commerce; two legislators, one chosen by the speaker of the house and one chosen by the senate committee on committees; two teachers chosen by the commissioner of education in consultation with the VT-National Education Association and the Vermont Independent School Association; one school board member chosen by the commissioner of education in consultation with the Vermont School Boards Association; and one administrator chosen by the commissioner of education in consultation with the Vermont Superintendents Association.

(b) The committee shall study:

(1) how charter schools operate in other states;

(2) alternatives for financial sponsorship of charter schools;

(3) what the research says about the success of charter schools;

(4) how charter schools affect rural, suburban and urban areas;

(5) whether Vermont residents are likely to take advantage of charter schools;

(6) whether charter schools would benefit children in Vermont;

(7) how special education services would be provided by charter schools; and

(8) how charter schools would be held accountable for ensuring that students meet state standards adopted under 16 V.S.A. § 164(9).

(c) The committee may meet up to six times. Legislative members shall receive per diem and expenses pursuant to section 406 of Title 2, and nonlegislative members may receive per diem and expenses pursuant to section 1010 of Title 32. The committee may request staff assistance from the legislative council and the department of education, and is encouraged to use federal funds or private grants, or both, to fund this study.

(d) On or before December 15, 2001, the committee shall report its findings and recommendations to the House and Senate Committees on Education, on Finance and on Ways and Means.

Sec. 282. LEGISLATIVE AND EXECUTIVE STUDY ON

TRANSPORTATION REVENUES AND PROGRAMS

(a) Legislative findings. The general assembly finds that:

(1) There are insufficient state and federal revenues to support the number of transportation projects that are currently ready to be constructed and that are planned to be constructed in the next decade.

(2) It is necessary to establish annual project completion goals for each transportation program in order to determine the level of funding necessary to support the goals of the state’s long-range transportation plan of maintaining the state’s existing infrastructure and making strategic investments.

(3) The amount of appropriations from the transportation fund to other agencies of state government, other than to the agency of transportation, needs to be reexamined to determine an appropriate level of appropriations.

(4) A coordinated effort between the legislative and executive branches of government is necessary to craft solutions to this issue.

(b) Summer study working group. A summer study working group, consisting of the secretary of transportation, who shall serve as chair, the commissioner of finance and management, and the members of the joint transportation oversight committee or their designees, shall be convened to study and make recommendations regarding the following:

(1) Annual project completion goals for each transportation program in the agency of transportation’s budget that support the goals found in the state’s long-range transportation plan of maintaining our existing infrastructure and making strategic investments.

(2) An appropriate level of funding for each transportation program that achieves the project completion goals established by the working group.

(3) The amount of state revenues that are necessary to support the project completion goals.

(4) Identification of additional state revenue sources that may be necessary to achieve project completion goals.

(5) The appropriate amount of joint transportation oversight committee (JTOC) funds that are appropriated from the transportation fund that better reflects the needs of transportation and state government as a whole, and the criteria that could be utilized in determining when these appropriations are warranted.

(6) The development of an annual report to the legislature which shall detail the source of federal funds in the agency of transportation’s budget proposal, including the amounts of federal funds from prior federal fiscal years, from the current federal fiscal year and from the following federal fiscal year. The report shall detail each project for which federal fiscal year Statewide Transportation Improvement Program (STIP) funds are included, and shall include STIP totals for program areas.

(7) The effect that use of federal indirect cost reimbursements has had on the agency’s capital construction program.

(8) Innovative transportation financing techniques.

(9) The capacity of the state to issue debt for transportation construction without affecting the state’s current credit rating.

(c) Report. The summer study working group shall issue a report which shall contain its findings and recommendations to the members of the joint transportation oversight committee, the members of the senate committees on transportation, on finance and on appropriations, and the members of the house committees on transportation, on ways and means and on appropriations, no later than November 1, 2001.

(d) Staffing. The agency of transportation, office of finance and management, joint fiscal office and legislative council shall provide support staff for the study group.

(e) Legislative members attending meetings shall be entitled to per diem and expenses as provided for in 2 V.S.A. § 406.

Sec. 283. EFFECTIVE DATES

(a) This section and Secs. 65a, 123(j), 123(k), 129a, 129b, 129c, 129d, 129e, 130, 151a, 164(a), 165a, 165b, 170a, 220(a), 260a, 260b, 260c, 260d, 260e, 264a, 264c, 276, 278 and 280b shall be effective on passage.

(b) Sections 279 and 279a of this act shall take effect upon passage and apply to appeals from grand lists of April 1, 2001 and thereafter.

(c) Sections 163a, 163b, 163c, 163d and 163e of this act shall take effect for fiscal years 2004 and thereafter, and Sec. 163f of this act shall take effect for fiscal year 2003.

(d) Sections 164a, 164b, 164c and 164d of this act shall take effect on July 1, 2002.

(e) Section 165a shall be effective for calculations after May 31, 2001.

Approved: June 16, 2001