Senate Calendar

saturday, may 10, 2003

123rd DAY OF BIENNIAL SESSION

TABLE OF CONTENTS

                                                                                                                Page No.

ACTION CALENDAR

UNFINISHED BUSINESS OF WEDNESDAY, MAY 7, 2003

Third Reading

H. 162   State agency acceptance of credit and debit card payments.............. 1140

                        Sen. Bloomer amendment...................................................... 1140

UNFINISHED BUSINESS OF FRIDAY, MAY 9, 2003

Second Reading

H. 458  Creation of Dept. of Information and Innovation................................ 1141

                        Government Operations committee report.............................. 1141

                        Appropriations committee report............................................ 1141

House Proposals of Amendment

S. 15     Juvenile justice legislative oversight committee................................... 1141

NEW BUSINESS

Third Reading

S. 23     Technical center alternative governance pilot projects........................ 1159

Committee of Conference

H. 28    Vermont Amber alert program.......................................................... 1159

Joint Resolutions for Action

J.R.S. 33  Help America vote act.................................................................. 1158

J.R.H. 18  Broadcast media ownership rules................................................. 1158

NOTICE CALENDAR

Favorable

H. 324   Tax credit for traded or sold motor vehicles...................................... 1158

Favorable with Recommendation of Amendment

H. 42     Brownsfield reclamation program..................................................... 1159

                        Ec. Dev, Housing and General Affairs committee report.......... 1159

                        Finance committee report....................................................... 1167

Favorable with Proposal of Amendment

H. 19     Eluding an enforcement officer while operating a motor veh............... 1167

H. 128   Hospital and health care system accountability, capital spending........ 1168

                        Health and Welfare committee report..................................... 1168

                        Finance committee report....................................................... 1199

H. 175   Consolidated environmental appeals & land use law......................... 1199

H. 480   Education Funding........................................................................... 1216

                        Finance committee report....................................................... 1216

                        Appropriations committee report............................................ 1259


 

ORDERS OF THE DAY

ACTION CALENDAR

UNFINISHED BUSINESS OF WEDNESDAY, MAY 7, 2003

Third Reading

H. 162

An act relating to state agency acceptance of credit and debit card payments.

PROPOSAL OF AMENDMENT TO H. 162 TO BE OFFERED BY SENATOR BLOOMER BEFORE THIRD READING

Senator Bloomer moves that the Senate propose to the House to amend the bill as follows:

First:  By striking out Sec. 1 in its entirety and inserting in lieu thereof a new Sec. 1 to read as follows:

Sec. 1.  32 V.S.A. § 583 is amended to read:

§ 583.  CREDIT CARD PAYMENTS

(a)  A statewide officer or secretary of a state agency or commissioner of a state department may elect to accept payment of taxes, registration fees, license fees, penalties, fines, interest, charges, surcharges, or any other fees or amounts due the state by means of credit cards, debit cards, charge cards, prepaid cards, stored value cards, and direct bank account withdrawal or transfer.

(b)  The state treasurer shall negotiate and contract with banks and bank credit card companies or others to provide as a method of payment to state agencies or departments the use of credit card or debit card accounts or direct bank account withdrawals or transfers, and may agree to pay such bank or other company a fee or percentage of the amount collected and remitted to the state.  Notwithstanding section 502 of this title, an agency or department may charge against such collections the percentage or fee imposed.

(c)  The state treasurer shall assist each statewide officer, secretary and commissioner who elects to accept payments, as authorized by this section, with establishing procedures for accepting those payments.

(d)  A statewide officer or secretary of a state agency that or commissioner of a state department who has authority to accept payment of fees, penalties, fines, charges, surcharges, or any other amounts due the state by a credit card, debit card, charge card, prepaid card, or stored value card shall not charge or collect any additional amounts for using such card to make the payment unless such charge is specifically authorized by statute the agency develops a policy regarding additional charges. Each policy and recommended charge shall be approved by the secretary of administration and the joint fiscal committee prior to applying the charge.  Any such charge shall approximate the cost of providing the service.

Second:  In Sec. 4, by striking out the following: “4 V.S.A. §741(a) (payments by credit card to clerks of courts,

UNFINISHED BUSINESS OF FRIDAY, MAY 9, 2003

Second Reading

Favorable with Proposal of Amendment

H. 458

An act relating to the creation of the department of information and innovation.

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

The Committee recommends that the Senate propose to the House to amend the bill as follows:

First:  In Sec. 4, 3 V.S.A. § 2294, in the second sentence, by striking the word “seven” and in the third sentence, after “Vermont Interactive Television”, by adding “Vermont Technical College

Second:  In Sec. 6, 22 V.S.A. § 901(1), after “software,” by inserting “accessibility,

Committee Vote: 6-0-0)

Reported favorably by Senator Gossens for the Committee on Appropriations.

(Committee vote: 4-2-0)

(For House amendments, see House Journal for April 8, 2003, page 491.)

House Proposal of Amendment

S. 15

An act relating to a juvenile justice legislative oversight committee.

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

Sec. 1.  3 V.S.A. § 3085c is amended to read:

§ 3085c.  COMMISSION ON JUVENILE JUSTICE

* * *

(e)(1)  A juvenile justice policy subcommittee is created within the commission.  The subcommittee shall be composed of the following members:

(A)  the secretary of the agency of human services, who shall be the chair;

(B)  three representatives, who shall be appointed by the speaker of the house;

(C)  three senators, who shall be appointed by the committee on committees;

(D)  the secretary of the agency of administration;

(E)  the defender general;

(F)  a representative of the runaway youth coalition of Vermont;

(G)  a representative of the Vermont parent child center network;

(H)  a representative of the Vermont coalition of residential programs;

(I)  a representative of the department of developmental and mental health services’ designated community mental health centers;

(J)  a representative of the Vermont center for crime victim services;

(K)  a representative of the state’s attorneys’ association;

(L)  a representative from the judicial branch of state government; and

(M)  a representative from the police chiefs’ association.

(2)  The subcommittee shall:

(A)  Advise the commission on the development of a comprehensive juvenile justice system.

(B)  Hold monthly public meetings to determine how issues related to juvenile justice are impacting Vermont communities.

(C)  Coordinate with the children and family council for prevention programs on the juvenile justice block grant budget and on any other federal grants relating to juvenile justice.

(D)  Report to the governor and the general assembly no later than December 1 of each year.  The report shall include an evaluation of the strengths and weaknesses and successes and failures of the comprehensive juvenile justice and youthful offender system; recommendations to improve the program; and a detailed report on the development, implementation, and operation of the program.

(E)  Examine existing policy and, where needed, make policy recommendations in at least the following areas:  access to early care, education and prevention; effective use of Vermont’s home visiting and family support resources; provision of juvenile justice; coordination of out‑of‑schooltime services; and efforts to eradicate adolescent substance abuse.  

(f)  The departments of social and rehabilitation services and of corrections agency of human services shall provide the commission with administrative support.

(g)(f)  The juvenile justice commission, the juvenile justice policy subcommittee, the children and family council for prevention programs, and the governor’s cabinet for children and youth shall coordinate activities and, wherever possible, consolidate meetings to promote effective and efficient uses of resources and to minimize duplication.

(g)  Annually, the commission shall prepare a report of its findings and activities during the preceding year.  The report shall include a detailed description of the progress made on the development, implementation, and ongoing operation of the comprehensive juvenile justice and youthful offender system.  On or before December 1 of each year, the commission shall file its report with the governor, the general assembly, and the senate and house committees on judiciary, and make the report available to the public.

Sec. 2.  13 V.S.A. § 5361 is amended to read:

§ 5361.  CENTER FOR CRIME VICTIMS SERVICES

(a)  The center for crime victims services is created and shall be responsible for the following:

* * *

(3)  Administer the victims compensation program and, the victims assistance program, and the restitution unit.

(4)  Assist in the development and administration of other programs and services for crime victims and witnesses, as needed.

* * *

Sec. 3.  13 V.S.A. § 5362 is added to read:

§ 5362.  RESTITUTION UNIT

(a)  A restitution unit is created within the center for crime victims services for purposes of assuring that crime victims receive restitution when it is ordered by the court. 

(b)  The restitution unit shall administer the restitution fund established under section 5363 of this title.

(c)  The restitution unit shall have the authority to:

(1)  Collect restitution from the defendant when it is ordered by the court, deposit the funds collected into the restitution fund, and make payments to victims out of the fund. 

(2)  Bring an action to enforce a restitution order as a civil judgment under section 7043 of this title.

(3)  Share and access information, consistent with Vermont and federal law, from the court, the department of corrections, the department of taxes, and the department of employment and training in order to carry out its collection and enforcement functions.

Sec. 4.  13 V.S.A. § 5363 is added to read:

§ 5363.  CRIME VICTIMS’ RESTITUTION SPECIAL FUND

(a)  There is hereby established in the state treasury a fund to be known as the crime victims’ restitution special fund, to be administered by the victims compensation board established by section 5352 of this title, and from which payments may be made to provide restitution to crime victims.

(b)  There shall be deposited into the fund:

(1)  All monies collected from persons against whom restitution has been ordered pursuant to section 7043 of Title 13.

(2)  All fees imposed by the clerk of court and designated for deposit into the fund pursuant to section 7282 of Title 13.

(3)  Such sums as may be appropriated to the fund by the general assembly. 

(c)  All balances in the fund at the end of any fiscal year shall be carried forward and remain a part of the fund.  Disbursements from the fund shall be made by the state treasurer on warrants drawn by the commissioner of finance and management. 

(d)  Notwithstanding anything in this section or any other provision of law to the contrary, revenue from the surcharge fees deposited into the crime victims’ restitution special fund shall be used exclusively to support restitution for crime victims and for no other purpose.

Sec. 5.  13 V.S.A. § 7041 is amended to read:

§ 7041.  DEFERRED SENTENCE

(b)  Upon violation of the terms of probation or of the deferred sentence agreement, the court shall impose sentence.  Upon fulfillment of the terms of probation and of the deferred sentence agreement, the court shall strike the adjudication of guilt and discharge the respondent, except that a person shall not be discharged from probation imposed under this section until restitution has been paid in full, absent a finding of good cause by the court.  Upon discharge the record of the criminal proceedings shall be expunged as if an application pursuant to section 5538 of Title 33 had been granted, except that the record shall not be expunged until restitution has been paid in full, absent a finding of good cause by the court.

 (c)(1)  A deferred sentence imposed under subsection (a) of this section may include a restitution order issued pursuant to section 7043 of this title.  If a court determines that a person subject to a deferred sentence has failed to comply with a restitution order issued

under section 7043 of this title, the court may impose sentence upon finding the defendant has the present ability to pay.  Nonpayment of restitution shall not constitute grounds for imposition of the underlying sentence.

(2)  No sentence shall be imposed or continued pursuant to this subsection after compliance with the restitution order.  This subsection shall not apply to the violation of any condition of probation other than a failure to comply with a restitution order.

Sec. 6.  13 V.S.A. § 7043 is amended to read:

§ 7043.  RESTITUTION

(a)(1)  Restitution shall be considered in every case in which a victim of a crime, as defined in subdivision 5301(4) of this title, has suffered a material loss or has incurred medical expenses.  Whether or not any other sentence or disposition is imposed, a term of probation may be ordered, with restitution as the only condition.  A person shall not be placed on probation solely for purposes of paying restitution.

(2)  For purposes of this section, “material loss” means uninsured property loss, uninsured out-of-pocket monetary loss, and uninsured medical expenses.

(b)  When ordered, restitution may include:

(1)  return of property wrongfully taken from the victim;

(2)  cash, credit card, or installment payments, including interest at the statutory rate for civil judgments, or voluntarily assigned wages or assets, paid to the victim, to the restitution fund, or to the victims’ compensation fund established under chapter 167 of this title to compensate for damages to the victim’s property or person; or

(3)  payments in kind, if acceptable to the victim.

(c)  In awarding restitution, the court shall consider the ability of the defendant to pay.

(d)  Restitution, if imposed, shall be due at the time of sentencing, unless the court finds on the record that there is good cause for an extension, and made to the victim, or if the victim has died, to the victim’s estate.  To the extent that the victims’ compensation board has made payment to or on behalf of the victim in accordance with chapter 167 of this title, restitution, if imposed, shall be paid to the victims’ compensation fund.

(e)  Restitution orders If not paid at the time of sentencing, restitution may be enforced as conditions of probation, supervised community sentence, furlough, preapproved furlough or parole if the convicted person is sentenced to preapproved furlough, probation or supervised community sentence, or is sentenced to imprisonment and later placed on parole, or otherwise in the manner of civil judgments.  Unless otherwise specifically ordered by the court, an order for restitution as a condition of preapproved furlough, probation or supervised community sentence shall remain in effect if the defendant violates preapproved furlough, probation or supervised community sentence and is sentenced to imprisonment. 

(f)  When restitution is not ordered, the court shall set forth on the record its reasons for not ordering restitution.

(g)  No restitution ordered under this section precludes a person granted such relief from pursuing an independent civil action.

(h)  The court may modify a restitution order if, upon motion by the state’s attorney, the center for crime victims services, the victim, or the defendant, the court finds that a modification is warranted by a substantial change in circumstances.

(i)(1)  If the defendant fails to pay restitution as ordered by the court, the victim, the center for crime victims services, the department of corrections, or the state’s attorney may notify the court of the defendant’s default.  The court shall set the matter for hearing, and shall provide notice thereof to the victim, the department of corrections, the state, and the defendant.  If the court determines the defendant has failed to comply with the restitution order, the court may take any action the court deems necessary to ensure the defendant will make the required restitution payments, including:

(A)  amending or modifying the court’s restitution order;

(B)  requiring the disclosure of assets and income by the defendant, in which case the defendant may voluntarily assign wages or assets to satisfy the compliance requirement;

(C)  upon finding the defendant has the ability to pay, revoking the defendant’s probation, and ordering the defendant to serve all or part of the underlying sentence.

(2)  Any monies owed by the state to an offender who is under a restitution order, including, but not limited to, lottery winnings and tax refunds, shall be assigned to discharge the restitution order to the full extent of the unpaid total financial losses, regardless of the payment schedule in the restitution payment plan.  In the case of a tax refund, the monies shall be paid pursuant to subchapter 12 of chapter 151 of Title 32.  Monies paid under this subsection shall be paid directly to the department of corrections, without any reductions for collection or supervision fees.

(j)  The department of corrections shall, in conjunction with the center for crime victims services, establish guidelines for assessing the defendant’s ability to pay restitution.  The guidelines shall describe pertinent financial information to be collected, procedures for the verification of information, staff responsible for collecting the information, methods of relaying that information to the court, and a recommended payment schedule.

(k)  A standard condition of probation, parole, supervised community sentence, preapproved furlough or other sentence shall be a requirement that the defendant comply with all requests from the department of corrections or the center for crime victims services to furnish information, including financial information, which will enable the department to collect restitution from the defendant.

(l)  The court shall not discharge a defendant from probation until restitution has been paid in full, absent a finding of good cause by the court.

(m)  A restitution obligation shall be nondischargeable, to the maximum extent provided under 11 U.S.C. § 523, in the United States Bankruptcy Court.

(n)  A transfer of property made with the intent to avoid a restitution obligation shall be deemed a fraudulent conveyance for purposes of chapter 57 of Title 9.

(c)  In awarding restitution, the court shall make findings with respect to:

(1)  The total amount of the material loss incurred by the victim.  If sufficient documentation of the material loss is not available at the time of sentencing, the court shall set a hearing on the issue, and notice thereof shall be provided to the defendant. 

(2)  The defendant’s current ability to pay restitution, based on financial information which the defendant has filed with the court.

(d)(1)  An order of restitution shall establish the amount of the material loss incurred by the victim, which shall be the restitution judgment order.  In the event the defendant is unable to pay the restitution judgment order at the time of sentencing, the court shall establish a payment schedule for the defendant based upon the defendant’s current and reasonably foreseeable ability to pay, subject to modification under subsection (k) of this section.

(2)  Restitution shall be due at sentencing unless the court finds on the record that there is good cause for an extension and sets out the terms of a payment schedule, including the amounts and due dates of payment.

(e)(1)  If not paid at the time of sentencing, restitution may be ordered as a condition of probation, supervised community sentence, furlough, preapproved furlough, or parole if the convicted person is sentenced to preapproved furlough, probation, or supervised community sentence, or is sentenced to imprisonment and later placed on parole.  A defendant may not be charged with a violation of probation, furlough, or parole for nonpayment of restitution.

(2)  The department of corrections shall work collaboratively with the restitution unit to assist with the collection of restitution.  The department shall provide the restitution unit or a victim who has elected to proceed under subsection (h) of this section with information about the location and employment status of the defendant.

(f)  When restitution is requested and not ordered, the court shall set forth on the record its reasons for not ordering restitution.

(g)  Restitution ordered under this section shall not preclude a person from pursuing an independent civil action.

(h)  A victim may elect to collect on and enforce a restitution order independently of the restitution unit.  A victim shall provide notice to the restitution unit of an election to proceed under this subsection.

(i)(1)  If the victim has not elected to proceed under subsection (h) of this section, the court shall transmit a copy of a restitution order to the restitution unit, which shall make payment to the victim from the restitution fund established under section 5363 of this title.  If the victim has died, payment shall be made to the victim’s estate. 

(2)  A payment out of the restitution fund shall not exceed $5,000.00, except as provided in subdivision (k)(2) of this section.

(3)  To the extent that the victims’ compensation board has made payment to or on behalf of the victim in accordance with chapter 167 of this title, restitution, if imposed, shall be paid to the victims’ compensation fund.

(j)  The restitution unit or a victim who has elected to proceed under subsection (h) of this section may bring an action to enforce a restitution order against a defendant in the superior court of the county where the order was issued.  In an action under this subsection, a restitution order issued by the district court shall be enforceable in superior court in the same manner as a civil judgment.  Superior court filing fees shall be waived for an action under this subsection.

(k)(1)  All restitution payments by a defendant shall be made to the restitution unit or to a victim who has elected to proceed under subsection (h) of this section.

(2)  If the restitution unit collects in excess of $5,000.00 from the defendant, the amount in excess of $5,000.00 shall be paid to the victim until the victim has received the full amount of the restitution order.  Any excess remaining after the victim has received the full amount of the restitution order shall be divided between the victim’s compensation fund and the restitution unit in proportion to the amount which each paid to the victim.  

(l)  The sentencing court may modify the payment schedule of a restitution order if, upon motion by the state, the victim, or the defendant, the court finds that modification is warranted by a substantial change in circumstances.

(m)  If the defendant fails to pay restitution at the time of sentencing as ordered by the court, the restitution unit, or the victim may notify the court of the defendant’s default.  The court shall set the matter for hearing and shall provide notice to the restitution unit, the victim, and the defendant.  If the court determines the defendant has failed to comply with the restitution order, the court may take any action the court deems necessary to ensure the defendant will make the required restitution payment, including:

(1)  amending the court’s restitution order;

(2)  ordering, in compliance with the procedures required in Rule 4.1 of the Vermont Rules of Civil Procedure, the disclosure, attachment, and sale of assets and accounts owned by the defendant;

(3)  ordering the defendant’s wages withheld pursuant to subsection (n) of this section; or

(4)  ordering the suspension of any recreational licenses owned by the defendant.

(n)(1)  Any monies owed by the state to an offender who is under a restitution order, including lottery winnings and tax refunds, shall be used to discharge the restitution order to the full extent of the unpaid total financial losses, regardless of the payment schedule in the restitution payment plan. 

(2)  When an offender is entitled to a tax refund, any restitution owed by the offender shall be withheld from the refund pursuant to subchapter 12 of chapter 151 of Title 32. 

(3)(A)  For all Vermont lottery games, the lottery commission shall, before issuing prize money of $500.00 or more to a winner, determine whether the winner has an outstanding restitution order.  If the winner owes restitution, the lottery commission shall withhold the entire amount of winnings and pay it to the restitution unit.  The restitution unit shall offset the winnings by the amount of restitution owed and the remainder of the winnings, if any, shall be sent to the winner.  The winner shall be notified by the restitution unit of the offset prior to payment to the victim and given a period not to exceed 20 days to contest the accuracy of the information.

(B)  The restitution unit shall inform the lottery commission of persons with outstanding restitution orders upon request.  Each person subject to such an order shall be identified by name, address and Social Security number.

(4)  Monies paid under this subsection shall be paid directly to the restitution fund, which shall notify the victim that the monies have been received.

(o)(1)  The court may, at any time, issue a wage withholding order directing current and subsequent employers of the defendant to pay a portion of the defendant’s wages directly to the restitution unit until the defendant’s restitution obligation is satisfied.  The wages of the defendant shall be exempt as follows:

(A)  to the extent provided under Section 303(b) of the Consumer Credit Protection Act (15 U.S.C. § 1673(b)); or

(B)  if the court finds the weekly expenses reasonably incurred by the debtor for his or her maintenance and that of dependents exceed the amounts exempted by subdivision (1)(A) of this subsection, such greater amount of earnings as the court shall order.

(2)  The court shall transmit all wage withholding orders issued under this section to the restitution unit, which shall forward the orders to the defendant’s employers.  Upon receipt of a wage withholding order from the restitution unit, an employer shall:

(A)  withhold from the wages paid to the defendant the amount specified in the order for each wage period;

(B)  forward the withheld wages to the restitution unit within seven working days after wages are withheld, specifying the date the wages were withheld;

(C)  retain a record of all withheld wages;

(D)  cease withholding wages upon notice from the restitution unit; and

(E)  notify the restitution unit within 10 days of the date the defendant’s employment is terminated.

(3)  In addition to the amounts withheld pursuant to this section, the employer may retain not more than $5.00 per month from the defendant’s wages as compensation for administrative costs incurred.

(4)  Any employer who fails to withhold wages pursuant to a wage withholding order within 10 working days of receiving actual notice or upon the next payment of wages to the employee, whichever is later, shall be liable to the restitution unit in the amount of the wages required to be withheld.

(5)  An employer who makes an error in the amount of wages withheld shall not be held liable if the error was made in good faith.

(6)  For purposes of this subsection, “wages” means any compensation paid or payable for personal services, whether designated as wages, salary, commission, bonuses, or otherwise, and shall include periodic payments under pension or retirement programs and workers’ compensation or insurance policies of any type.

(p)  A restitution obligation shall be nondischargeable, to the maximum extent provided under 11 U.S.C. § 523, in the United States Bankruptcy Court.

(q)  A transfer of property made with the intent to avoid a restitution obligation shall be deemed a fraudulent conveyance for purposes of chapter 57 of Title 9.

Sec. 7.  13 V.S.A. § 7282 is amended to read:

§ 7282.  ASSESSMENT

(a)  In addition to any penalty or fine imposed by the court for a criminal offense or any civil penalty imposed for a traffic violation, including any violation of a fish and wildlife statute or regulation, violation of a motor vehicle statute, or violation of any local ordinance relating to the operation of a motor vehicle, except violations relating to seat belts and child restraints and ordinances relating to parking violations, the clerk of the court shall levy an additional fee of:

(1)  $5.00 for any offense committed prior to June 1, 1990.

(2)  $8.00 for any offense committed after May 31, 1990, but before July 1, 1991, of which $3.00 shall be deposited into a special fund account to be known as the Victims’ Compensation Fund.

(3)  $10.00 for any offense committed after June 30, 1991, but before July 1, 1993, of which $5.00 shall be deposited into a special fund account to be known as the Victims’ Compensation Fund.

(4)  $17.50 for any offense committed after June 30, 1993, but before July 1, 2001, of which $12.50 shall be deposited into a special fund account to be known as the Victims’ Compensation Fund.

     (5)(A)  $20.50 for any offense committed after June 30, 2001, of which $13.50 shall be deposited into a special fund account to be known as the victims’ compensation fund, and $2.00 shall be deposited into the criminal justice training council special fund established in section 2363 of Title 20; and

(B)  an amount equal to 15 percent of the fine imposed for the offense, rounded upward to the nearest whole dollar, which shall be deposited into the crime victims’ restitution special fund established by section 5363 of Title 13.

 (b)  The fees imposed by this section shall be used for the purposes set out in section 7281 of this title and shall not be waived by the court.

(c)  Payment of the fees imposed by this section may be made in cash or by credit card.

Sec. 8.  24  V.S.A. § 1981 is amended to read:

§ 1981. ENFORCEMENT OF ORDER FROM JUDICIAL BUREAU

* * *

(d)  Upon motion of the municipal attorney, grand juror or other person designated by the legislative body of the municipality and proof by affidavit that the person found in violation has not paid the penalty, the bureau shall send to the person found in violation a notice that the penalty must be paid within 20 days of receipt of notice.  The notice shall include a warning that failure to pay the penalty within 20 days of the notice will result in a proceeding for contempt before the district court, and in the penalty accruing interest at the statutory rate for civil judgments until payment is made.

(e)  If the penalty is not paid within the 20 days,:

(1)  The penalty shall accrue interest at the statutory rate for civil judgments until payment is made.

(2)  the The bureau shall send a notice to the district court in the county in which the violation occurred.  The clerk of the district court shall forthwith provide notice to the person of a hearing for civil contempt proceedings pursuant to 12 V.S.A. § 122 for the failure to pay the penalty imposed by the bureau.  A finding of contempt for failure to pay the penalty shall include an order that the penalty accrue interest at the statutory rate for civil judgments until payment is made.  

Sec. 9.  28 V.S.A. § 253 is amended to read:

§ 253.  MODIFICATION OF CONDITIONS; REVOCATIONS

* * *

(c)  When restitution or reparation to the victim has been ordered under section 252(b)(6) of this title, and the offender has failed to comply with the order, the state's attorney, after receiving an affidavit filed with the state's attorney by the victim or the probation officer, asserting noncompliance, may initiate a proceeding for revocation of probation.

Sec. 10.  28 V.S.A. § 255 is amended to read:

§ 255.  DISCHARGE

* * *

(b)  When restitution or reparation to the victim has been ordered under subdivision 252(b)(6) of this title, the period of probation shall not terminate until the offender has complied with the order, absent a finding of good cause by the court.

Sec. 11.  28 V.S.A. § 301 is amended to read:

§ 301.  SUMMONS OR ARREST OF PROBATIONER

At any time before the discharge of the probationer or the termination of the period of probation:

* * *

(2)  Arrest of person on probation.  Any correctional officer may arrest a probationer without a warrant if, in the judgment of the correctional officer, the probationer has violated a condition or conditions of his or her probation other than a condition that the probationer pay restitution; or may deputize any other law enforcement officer to arrest a probationer without a warrant by giving him or her a written statement setting forth that the probationer has, in the judgment of the correctional officer, violated a condition or conditions of his or her probation other than a condition that the probationer pay restitution.  The written statement delivered with the person by the arresting officer to the supervising officer of the correctional facility to which the person is brought for detention shall be sufficient warrant for detaining him or her.

* * *

Sec. 12.  28 V.S.A. § 506 is amended to read:

§ 506.  TERMINATION AND DISCHARGE

* * *

(c)  When restitution or reparation to the victim has been ordered under subdivision 252(b)(6) of this title, the board shall not discharge the parolee from supervision until the offender has complied with the order, unless the sentence has been served in full.

Sec. 13.  32 V.S.A. § 3102 is amended to read:

§ 3102.  CONFIDENTIALITY OF TAX RECORDS

* * *

(e)  The commissioner may, in his or her discretion and subject to such conditions and requirements as he or she may provide, including any confidentiality requirements of the Internal Revenue Service, disclose a return or return information:

* * *

(13)  to the commissioner of corrections or the center for crime victims services for the purpose of determining or verifying a defendant’s assets and income pursuant to section 7043 of Title 13.

Sec. 14.  32 V.S.A. § 5932 is amended to read:

§ 5932.  DEFINITIONS

As used in this chapter:

* * *

(4)  “Debt” means any obligation to pay a sum of money to a claimant agency, the amount of which is fixed by agreement between the debtor and the claimant agency or by operation of law.  Such obligations do not include orders of restitution entered on behalf of a victim of a crime that may be collected by a claimant agency.

Sec. 15.  REPORTS

(a)  The center for crime victims services and the department of corrections shall jointly develop a plan for transferring authority over restitution management and collection from the department to the center, including plans for the transition period, for existing restitution orders, and for restitution orders issued during the transition period.  The center and the department shall report the plan to the house and senate committees on judiciary on or before January 1, 2004.

(b)  On or before January 1, 2005, and annually thereafter, the restitution unit of the center for crime victims services shall report its activities during the preceding year to the house and senate committees on judiciary.  The report shall include the following information from the preceding year:

(1)  the total number of restitution orders issued;

(2)  the total amount of restitution ordered;

(3)  the total amount of restitution paid out of the crime victims’ restitution special fund;

(4)  the average amount and median amount of restitution ordered;

(5)  the number of restitution orders issued requiring restitution payments of $1,000.00 or less, more than $1,000.00 but not more than $2,000.00, more than $2,000.00 but not more than $3,000.00, more than $3,000.00 but not more than $4,000.00, and more than $4,000.00 but not more than $5,000.00; and

(6)  the rates of collection, including the total amount of restitution collected by the unit, the amount ordered but uncollected, and the amount ordered but determined by the unit to be unrecoverable.

Sec. 16.  EFFECTIVE DATE

This act shall take effect on July 1, 2004, except for Secs. 1, 3, 4, 7, 8, 9, and  16, which shall take effect on passage.

Sec. 17.  SUNSET

This act shall expire on July 1, 2007.

NEW BUSINESS

Third Reading

S. 23

An act relating to continuation of technical center alternative governance pilot projects.

Report of Committee of Conference

H. 28

An act relating to a Vermont Amber alert program.

To the Senate and House of Representatives:

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

H. 28.  An act relating to a Vermont Amber alert program.

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

Sec. 1.  20 V.S.A. § 1828 is added to read:

§ 1828.  VERMONT AMBER ALERT PROGRAM

The department of public safety shall establish the Vermont Amber alert program to aid in the identification and location of abducted children.  The department shall administer the program pursuant to the following:

(1)  A law enforcement agency which verifies the abduction of a child shall notify the department of public safety.

(2)  The department shall establish a procedure for verifying the need to issue an Amber alert.

(3)  The department of public safety shall issue an alert over the Vermont emergency alert system if:

(A)  a law enforcement agency notifies the department of the abduction of a child;

(B)  there is sufficient information about the child or the person suspected of abducting the child that an immediate broadcast might help locate the child; and

(C)  the child is in danger of imminent death or serious bodily harm.

(4)  An alert issued under this section shall be sent to the Federal Communications Commission’s designated state emergency alert system broadcaster in Vermont.  Participating radio and television stations shall broadcast the alert at intervals established by the department.  The alert shall include all information which the department determines may assist in the safe recovery of the abducted child and instructions explaining how a person with information related to the abduction may contact a law enforcement agency. 

(5)  A law enforcement agency which locates a child who is the subject of an alert issued under this section shall immediately notify the law enforcement agency which requested the Amber alert.

(6)  An alert issued under this section shall be canceled:

(A)  if the department notifies the Federal Communications Commission’s designated state emergency alert system broadcaster in Vermont that the child has been located; or

(B)  at the expiration of a notification period specified by the department.

(7)  A radio or television station that accurately broadcasts information pursuant to this section shall not be liable for civil damages as a result of the broadcast of such information.

Sec. 2.  EFFECTIVE DATE

This act shall take effect upon passage.

                                                                        Ann Cummings

                                                                        William Doyle

                                                                        Jeannette White

                                                                 Committee on the part of the Senate

                                                                        Donna Sweaney

                                                                        Sarah Edwards

                                                                        David Bolduc

                                                                 Committee on the part of the House

Joint Senate Resolution for Action

J.R.S. 33

Joint resolution urging Congress to amend the Help America Vote Act in order to assist small rural states and remove those provisions which threaten personal privacy and fundamental civil liberties.

(For text of Resolution, see Senate Journal for Friday, May 9 2003)

Joint House Resolutions for Action

J.R.H. 18

Joint resolution urging the federal communications commission not to relax the current broadcast media ownership rules and to provide for a public comment period before the adoption of any rule changes.

(For text of Resolution, see Senate Journal for Friday, May 9, 2003)

NOTICE CALENDAR

Favorable

H. 324

An act relating to the purchase and use tax credit for traded or sold motor vehicles.

Reported favorably by Senator Collins for the Committee on Transportation.

(Committee vote: 5-0-1)

(For House amendments, see House Journal for April 15, 2003, page 720)

Favorable with Recommendation of Amendment

S. 42

An act relating to creating an office of land recycling, and otherwise revising the Brownsfield reclamation program.

Reported favorably with recommendation of amendment by Senator Dunne for the Committee on Economic Development, Housing and General Affairs.

The Committee recommends that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1.  10 V.S.A. § 6615(d)(3) is added to read:

(3)  A municipality or other governmental entity shall have no liability under this section in regard to property acquired involuntarily through bankruptcy, tax delinquency, abandonment, or any other circumstance in which the property is acquired by virtue of its function as sovereign.  A municipality that acquires property involuntarily may engage in any actions approved by the secretary in writing, including abatement, investigation, remediation, or removal activities to be conducted in response to a release or threatened release of hazardous materials.

Sec. 2.  10 V.S.A. § 6615a is amended to read:

§ 6615a.  REDEVELOPMENT OF CONTAMINATED PROPERTIES PROGRAM

(a)  Establishment of program.  A property cleanup program is hereby created to enable certain interested parties to request the assistance of the secretary in reviewing and overseeing work plans to investigate, abate, remove, remediate and monitor those properties in exchange for protection from certain liabilities under section 6615 of this title.  This program, to be called the “redevelopment of contaminated properties program,” shall be established within the agency of natural resources, department of environmental conservation.

(1)  Pilot project.  Between the dates of January 1, 1998 and July 1, 2001, no more than five new projects may be eligible to participate in the pilot project established under this subdivision.  Eligibility will be determined on a first-come first served basis, based upon the order in which applications are received, between those dates.  An applicant will retain his or her rank in the order of filed applications as long as the secretary does not issue a finding that the applicant has failed to progress with the project in a timely fashion, in which case the next applicant will assume that ranking, and the applicant who is the subject of the failure to progress finding shall be moved to the bottom of the list.  New applications to participate in the pilot project will not be accepted after July 1, 2001.

(2)  Benefits of participation in pilot project.  Participants in the pilot project will be entitled to all benefits specified in this section.

(b)  Definitions.  For the purposes of this section,:

(1)  “eligible Eligible person” shall mean means a person, as defined in section 6602 of this chapter, who has been determined to be eligible for the redevelopment of contaminated properties program pursuant to subsection (f) of this section.  The term “eligible person” shall include a secured lender who holds indicia of ownership in the property, as those indicia are described in section 6602(23) of this title, if the secured lender has been determined to be eligible for the redevelopment of contaminated properties program pursuant to subsection (f) of this section.

(2)  “Remediation standards” means procedures developed by the secretary of natural resources for the remediation of contaminated properties.  The secretary shall determine appropriate remedial standards on a site‑specific basis and shall consider all the following:  

(A)  Future land use and the appropriate use of institutional controls.

(B)  Environmental media, including soil, groundwater, surface water, and air.

(C)  Requirements for source removal, treatment, or containment.

(D)  Appropriate use of monitored natural attenuation.

(E)  Any other issue related to the protection of public health and the environment.

* * *

(f)  Eligibility.

* * *

(3)  Notwithstanding the requirements of this section regarding the ineligibility of current owners, current owners shall be eligible if the property is contained within a downtown development district designated under the provisions of chapter 76A of Title 24, and as long as the owners and the property are otherwise eligible under the provisions of this section. 

(g)  Submittal and approval of site investigation.

* * *

(5)  If the approved site investigation report concludes that no further investigation, abatement, removal, remediation or monitoring activities are required to adequately protect human health and the environment and to meet all applicable cleanup remediation standards, then the eligible person or successor may request a determination from the secretary that no additional investigation, abatement, removal, remediation, and monitoring activities are required.

(6)  The secretary may determine that no abatement, removal, remediation or monitoring activities are required if the secretary determines all of the following:

* * *

(B)  The releases or threatened releases that are not abated, removed or remediated do not pose an unacceptable risk to human health and the environment and meet the remediation standards.

* * *

(h)  Submittal and approval of corrective action plan.

(1)  If the approved site investigation report concludes that abatement, removal, remediation, or monitoring activities are required to adequately protect human health and the environment and to meet all applicable cleanup standards, the eligible person or successor shall submit a corrective action plan, which shall clearly describe the basis and details of a proposed cleanup strategy to insure technical feasibility, effective engineering design, reasonable costs, and protection of human health and the environment, and in compliance with the remediation standards.  The corrective action plan shall include the following elements:

* * *

(D)  A description of applicable state remediation standards, including any standards establishing acceptable concentrations of constituents in soils, surface water, or groundwater and, for constituents present at the site for which such state standards do not exist, a description of the cleanup levels to be attained and any current risk to human health or the environment based upon the proposed use and any likely future use of the property.

* * *

(2)  The secretary shall evaluate the corrective action plan, and shall either approve, approve with conditions, or disapprove the corrective action plan.  The secretary may contract with private engineers, hydrologists, or site professionals of the secretary’s sole choice to provide the investigation and review required by this subsection.  The secretary shall set such the insurance, bond or other surety requirements of these professionals as the secretary may deem appropriate determine.  The costs and expenses of any professionals retained by the secretary for this investigation shall be the sole responsibility of the eligible person.  If the secretary approves with conditions or disapproves the corrective action plan, the eligible person or successor shall submit a revised corrective action plan for approval or shall withdraw from the program.  If the secretary requests additional or corrected information at any time during evaluation of the corrective action plan, the eligible person or successor shall submit the information requested or withdraw from the program.

(3)  The secretary may approve a corrective action plan for all, or a portion of, the releases or threatened releases at the property, if the secretary determines all of the following:

* * *

(B)  The corrective action plan provides for all investigation, abatement, removal, remediation and monitoring activities required to protect human health and the environment and to meet all applicable cleanup remediation standards.

(C)  The eligible person, or successor, in writing, which a written document that shall be binding upon any successor, agrees:

* * *

(4)  If the secretary approves a corrective action plan that addresses only a portion of the releases or threatened releases at the property, the secretary must find that the releases or threatened releases that are not abated, removed or remediated pursuant to the corrective action plan do not pose an unacceptable risk to human health and the environment and are in compliance with the remediation standards

(5)  Prior to approval of the corrective action plan submitted pursuant to subdivision (h)(1) of this section, the secretary shall provide public notice, which may be satisfied by a notice published in a local newspaper generally circulated in the area where the property is located and written notice to the town clerk for the town municipality in which the property is located, provided together with a request that the notice be posted in a conspicuous place.  The notice shall set forth any proposed abatement, investigation, remediation, removal, and monitoring activities; shall state that the secretary is considering approval of a corrective action plan providing for such activities; shall request public comment on the proposed activities within 15 days after publication; and shall state the name, telephone number and address of an agency official able to answer questions and receive comments on the matter.  The public comment period may be extended by the secretary if public interest warrants the extension.  The secretary shall review public comment, if any, prior to approval of the corrective action plan.  The decision of the secretary as to whether a corrective action plan should be approved is within the secretary's sole discretion and is final.  Upon approval of a corrective action plan, the secretary shall inform the person, in general, of future requirements under this section that must be met by the eligible person or successor, and shall provide the person with a tentative schedule that establishes the processing times that the agency is likely to require, once an eligible person or successor has completed the various stages of the process established under this section, depending upon the scope and complexity of the project in question, and other demands on agency staff.

(A)  With respect to properties in the pilot project established under subdivision (a)(1) of this section, except in the case of Except for a corrective action plan adjustment as provided under subdivision (h)(5)(B) of this section, once the secretary has approved a corrective action plan, the secretary may not amend the plan, unless amendment is requested by an eligible person or successor.

(B)  With respect to properties in the pilot project established under subdivision (a)(1) of this section eligible persons, prior to becoming an owner or operator of an eligible property, the secretary may amend the approved plan by requiring a one-time corrective action plan adjustment, as deemed in the public interest by the secretary, which may increase the costs of completing provided the adjustments to the corrective action plan shall increase the costs of completion by no more than 30 percent of the estimated costs of the original corrective action planIn this instance, this amended plan is the plan that must be performed successfully before obtaining a certificate of completion, unless further amendment is requested by an eligible person or successor.  If the secretary determines that the corrective action plan and all adjustments to that plan have been substantially completed and that all fees and costs due under this section have been paid, the secretary shall issue a certificate of completion.  The certificate of completion shall certify that the work is completed and, in addition to the requirements under subsection (k) of this section, may include conditions for operations and monitoring.

(C)  With respect to properties in the pilot project established under subdivision (a)(1) of this section, notwithstanding  Notwithstanding the fact that the secretary issues a certificate of completion under subsection (k) of this section, if at any time the secretary finds that a completed corrective action plan fails to adequately protect human health and the environment and fails to meet all applicable state brownfields remediation and federal cleanup standards, the secretary may do any of the following:

(i)  exercise Exercise authority under section 6615 of this title against any liable person, except the person or the successor of the person that completed the corrective action plan; and .

(ii)  perform Perform all investigation, abatement, removal, remediation, or monitoring activities necessary to ensure the property meets the standards.

(6)  Upon approval of a corrective action plan, and any amendments to that plan, the secretary shall complete and present to the eligible person or successor a brief document titled, “Notice of approved corrective action plan for contaminated property.”  The document shall summarize the nature of the contamination identified on the property and the major components of the corrective action plan, and shall state that the property is subject to the “Redevelopment of Contaminated Property Program.”  If it is possible that future uses of the property may be restricted, the document shall state that fact.  The document shall include any restrictions on future uses and shall signify where any approved corrective action plan may be reviewed in its entirety.  The person receiving a notice of approved corrective action plan for contaminated property shall file it in the land records for the town municipality in which the property is located.

(i)  Performance of the corrective action plan.

(1)  The eligible person or successor shall perform all investigation, abatement, remediation, removal, and monitoring activities in accordance with the approved corrective action plan and all amendments to the plan, and with all applicable local, state and federal law.  The corrective action plan may be amended during its performance, subject to approval by the secretary.  At any time during the performance of a corrective action plan, except as otherwise provided in this section with respect to properties participating in the pilot project created under subsection (a) of this section, the plan may be amended, as necessary to attain the cleanup levels established in the corrective action plan.

* * *

(k)  Certificate of completion.

(1)  After completion of all of the activities required under the corrective action plan, the eligible person or successor shall file a completion report with the secretary.  The completion report shall describe the activities performed under the corrective action plan and any amendments to the plan; describe any problems encountered; and include a certification by the eligible person or successor that the activities were performed in accordance with the corrective action plan.  Upon receipt of the completion report, the secretary will determine if the corrective action plan has been completed and if additional work is required; except that, in case of a project participating in the pilot project created under subsection (a) of this section, the secretary may only determine whether additional work is required in order to complete the plan.  The eligible person or successor shall perform any additional activities specified by the secretary necessary to complete the corrective action plan and shall submit a new completion report.  Once the secretary determines that the eligible person or successor has successfully completed the corrective action plan, and has paid all fees and costs due under this section, the secretary shall issue a certificate of completion, which shall certify that the work is completed and shall include a description of any land use restrictions and any other conditions required by the corrective action plan.

* * *

(l)  Program funding.

(1)  Creation of fund.  There is created a brownfields revitalization fund, which shall be a special fund created under subchapter 5 of chapter 7 of Title 32, to be administered by the secretary of the agency of commerce and community development to aid applicants in the redevelopment of contaminated properties program with the characterization, assessment and remediation of sites.  Money received by the secretary of the agency of natural resources for assistance rendered in connection with the program shall be deposited in the redevelopment of contaminated properties account of the environmental contingency fund established in section 1283 of this title.

* * *

(3)  Applications for assistance.  Program applicants may apply to the secretary of commerce and community development for assistance from the brownfields revitalization fund in the form of a grant or loan to complete characterization, assessment or remediation of a site as part of a plan approved by the secretary of natural resources under this program only after receiving approval of an appropriate work plan by the secretary of natural resources.  Approval of work plans shall be contingent on participation by the Vermont redevelopment of contaminated properties program, unless the project under consideration is determined ineligible for the program, but is otherwise determined appropriate for funding under this subsection.

* * *

(5)  Grants.

* * *

(E)  All reports generated with the assistance of grants awarded under the brownfields revitalization fund, including site assessments, site investigations, feasibility studies, corrective action plans, and completion reports, shall be provided to the secretary in hard copy and in electronic form. 

* * *

(n)  The agency of natural resources and the agency of commerce and community development shall jointly develop a state plan for brownfields reclamation that shall include:

(1)  An inventory and assessment of potential sites prioritized by the ease of reducing the threat to public health, the availability of development opportunities, and the highest expected return on public investment.

(2)  Methods and strategies for coordinating remediation with eventual usage of the sites, reclamation of high priority projects, financing projects with various public and private funding, and assuring consistent investment by the state for a minimum of ten years in order to return as many properties as possible to recreation, parks, green space, housing, and commercial uses.

Sec. 4.  32 V.S.A. § 10103(b) is amended to read:

(b)  The following hazardous wastes are exempt from the tax imposed by subsections (a) and (e) of this section provided that the exemption is noted on a manifest or other report in the manner prescribed by the secretary:

* * *

(5)  hazardous waste generated by a facility onsite, which that is recycled onsite; or

(6)  hazardous waste which that has been previously taxed in Vermont, provided:

(A)  the person shipping the previously taxed waste has not held the waste for more than 180 days; and

(B)  if the waste has been mixed, the resulting mixture does not change the applicable U.S. Department of Transportation shipping description from that which applied before the waste was mixed;

(7)  hazardous waste shipped in implementing a corrective action plan approved by the secretary of natural resources under 10 V.S.A. § 6615a, the redevelopment of contaminated properties program, provided that the secretary determines that the corrective action plan has been successfully completed and issues a certificate of completion, as provided under that section.

Sec. 5.  INSURANCE PRODUCTS FOR CONTAMINATED PROPERTY; REPORT

The secretary of commerce and community development, in cooperation with the commissioner of banking, insurance, securities, and health care administration, with advice from representatives of financial institutions, hazardous materials management specialists, and insurance institutions, shall investigate the availability of various insurance products that would improve the feasibility of brownfields redevelopment projects.  On or before January 1, 2004, the secretary shall issue a written report of the findings to the General Assembly. 

(Committee vote: 6-0-0)

Reported favorably by Senator Gander for the Committee on Finance.

(Committee vote: 5-0-2)

Favorable with Proposal of Amendment

H. 19

An act relating to attempting to elude an enforcement officer while operating a motor vehicle.

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

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

Sec. 1.  23 V.S.A. § 1133 is amended to read:

§ 1133.  ATTEMPTING TO ELUDE A POLICE OFFICER

(a)  An No operator of a motor vehicle who fails shall fail to bring his or her vehicle to a stop when signaled to do so by an enforcement officer:

(1)  wearing displaying insignia identifying him or her as such,; or

(2)  operating a law enforcement vehicle sounding a siren and displaying a flashing blue or blue and white signal lamp, shall be imprisoned for not more than six months or fined not more than $500.00, or both.

(b)(1)  A person who violates subsection (a) of this section shall be imprisoned for not more than six months or fined not more than $1,000.00, or both.

(2)  In the event that serious bodily injury to any person other than the operator is proximately caused by the operator’s knowing violation of subsection (a) of this section, the operator shall be imprisoned for not more than five years or fined not more than $3,000.00, or both.

(c) In a prosecution under this section, the operator may raise as an affirmative defense, to be proven by a preponderance of the evidence, that the operator brought his or her vehicle to a stop in a manner, time, and distance that was reasonable under the circumstances. 

(d)  A person convicted of violating this section shall be assessed a surcharge of $50.00, which shall be added to any fine or surcharge imposed by the court.  The court shall collect and transfer the surcharge assessed under this subsection to be credited to the DUI enforcement fund.  The collection procedures described in 13 V.S.A. § 5240 shall be utilized in the collection of this surcharge.

(e)  As used in this section:

(1)  “Operator” includes an operator who, after being signaled to stop under subsection (a) of this section, leaves the vehicle and attempts to elude the officer by other means.

(2)  “Serious bodily injury” has the meaning defined in 13 V.S.A. § 1021.  

(Committee Vote: 19)

(For House amendments, see House Journal for January 21, 2003, page 51.)

H. 128

An act relating to hospital and health care system accountability, capital spending, and annual budget.

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

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

Sec. 1.  PURPOSE

The purpose of this act is to:

(1)  strengthen the health planning process and to reflect concerns about health care access, quality, and costs;

(2)  develop tools and resources to assist consumers and payers with making health care decisions by providing accessible, useful information comparing hospital costs and performance; 

(3)  require consistent and open dialogue between hospitals and their communities regarding health service needs, strategic planning, and health policy;

(4)  increase opportunities for public involvement in health policy planning;

(5)  develop a health resource allocation plan that can guide health facility planning, capital expenditures, and budget reviews; and

(6)  create an efficient and effective regulatory system that is fair, predictable, enforceable, and capable of achieving Vermont’s health care cost containment and other health care policy goals.

* * * General Provisions * * *

Sec. 2.  18 V.S.A. § 9402 is amended to read:

§ 9402.  DEFINITIONS

As used in this chapter, unless otherwise indicated:

(1)  “Commissioner” means the commissioner of the department of banking, insurance, securities, and health care administration, or the commissioner’s designee.

(2)  “Community needs assessment” means a process by which a hospital identifies and prioritizes the health care needs of the service area or patient population for which a hospital provides services, as required by subsection 9504(c) of this title.

(3)  “Community report” means the hospital report prepared under section 9405a of this title.

(2)(4)  “Department” means the department of banking, insurance, securities, and health care administration.

(3)(5)  “Division” means the division of health care administration.

(4)(6)  “Expenditure analysis” means the expenditure analysis developed pursuant to section 9406 of this title.

(5)(7)  “Health care facility” means all facilities and institutions, whether public or private, proprietary or nonprofit, which offer diagnosis, treatment, inpatient or ambulatory care to two or more unrelated persons, and the buildings in which those services are offered.  The term shall not apply to any facility operated by religious groups relying solely on spiritual means through prayer or healing, but includes all facilities and institutions included in section 9432(10) subdivision 9432(7) of this title, except health maintenance organizations.

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

(7)(9)  “Health insurer” means any health insurance company, nonprofit hospital and medical service corporation, managed care organizations, and, to the extent permitted under federal law, any administrator of an insured, self‑insured, or publicly funded health care benefit plan offered by public and private entities.

(8)  “Health resource management plan” means the plan for distribution of the health care resources in Vermont adopted March 15, 1996.

(9)(10)  “Health maintenance organization” means any person certified to operate a health maintenance organization by the commissioner pursuant to chapter 139 of Title 8.

(11)  “Health resource allocation plan” means the plan developed by the commissioner and adopted by the governor under section 9405 of this title.

(12)  “Hospital” means an acute care hospital licensed under chapter 43 of this title and falling within one of the following four distinct categories, as defined by the commissioner by rule:

(A)  Category A1:  tertiary teaching hospitals.

(B)  Category A2:  regional medical centers.

(C)  Category A3:  community hospital systems.

(D)  Category A4:  critical access hospitals. 

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

(11)(14)  “Public oversight commission” means the commission established in section 9407 of this title.

(12)  “Resident” means a person who is domiciled in Vermont as evidenced by an intent to maintain a principal dwelling place in Vermont indefinitely and to return to Vermont if temporarily absent, coupled with an act or acts consistent with that intent.

(13)(15)  “Unified health care budget” means the budget established in accordance with section 9406 of this title.

(14)(16)  “State health plan” means the plan developed under section 9405 of this title.

(15)  “Technical panel” means the panel established in section 9407 of this title.

Sec. 3.  18 V.S.A. § 9405 is amended to read:

§ 9405.  STATE HEALTH PLAN; HEALTH RESOURCE MANAGEMENT ALLOCATION PLAN; STATE HEALTH PLAN

(a)  No later than March 15, 1999 January 1, 2005, the secretary of human services, in consultation with the commissioner and health care professionals and after receipt of public comment, shall adopt a state health plan that sets forth the health goals and values for the state, after receipt of public comment.  The secretary may amend the plan as the secretary deems necessary and appropriate.  The plan shall include health promotion, health protection, nutrition, and disease prevention priorities for the state, identify available human resources as well as human resources needed for achieving the state’s health goals and the planning required to meet those needs, and identify geographic parts of the state needing investments of additional resources in order to improve the health of the population in sufficient detail to guide development of the state health resource allocation plan.  Copies of the plan shall be submitted to members of the senate and house committees on health and welfare no later than January 15, 2005. 

(b)  In order to attain the goals of the state plan, no later than March 15, 1999, and annually on January 1 thereafter, the secretary shall adopt a state health action plan that outlines the priorities and concerns for that year.  The action plan shall consider the changing realities of the health care distribution system and the needs and values of the state.  The secretary may consult other health care plans created by the state or any of its subdivisions or any persons that create or compile health care information to the extent the secretary determines such consultations are useful in formulating the state health action plan.  On January 1, 2000, and annually thereafter, the secretary shall report to the general assembly on the success in meeting the goals of the annual state health action plan and the state health plan On or before July 1, 2005, the commissioner, in consultation with the secretary of human services, shall submit to the governor a four-year health resource allocation plan.  The plan shall identify Vermont needs in health care services, programs, and facilities; the resources available to meet those needs; and the priorities for addressing those needs on a statewide basis.

(1)  The plan shall include:

(A)  A statement of principles reflecting the policies enumerated in sections 9401 and 9431 of this chapter to be used in allocating resources and in establishing priorities for health services.

(B)  Identification of the current supply and distribution of hospital, nursing home, and other inpatient services; home health and mental health services; treatment and prevention services for alcohol and other drug abuse; emergency care; ambulatory care services, including primary care resources, federally qualified health centers, and free clinics; major medical equipment; and health screening and early intervention services.

(C)  Consistent with the principles set forth in subdivision (A) of this subdivision (1), guidelines for the appropriate supply and distribution of resources, programs, and services identified in subdivision (B) of this subdivision (1), and mechanisms which will encourage the appropriate integration of these services on a local or regional basis.  To arrive at such guidelines, the commissioner shall consider at least the following factors:  the values and goals reflected in the state health plan; the needs of the population on a statewide basis; the needs of particular geographic areas of the state, as identified in the state health plan; the needs of uninsured and underinsured populations; the use of Vermont facilities by out‑of‑state residents; the use of out‑of‑state facilities by Vermont residents; the needs of populations with special health care needs; the desirability of providing high quality services in an economical and efficient manner, including the appropriate use of midlevel practitioners; the cost impact of these resource requirements on health care expenditures; the services appropriate for the four categories of hospitals described in subdivision 9402(12) of this title; the overall quality and use of health care services as reported by the Vermont program for quality in health care and the Vermont ethics network; the overall quality and cost of services as reported in the annual hospital community reports; information from the hospital community needs assessments; individual hospital four-year capital budget projections; the unified health care budget; and the four-year projection of health care expenditures prepared by the division.

(2)  In the preparation of the plan, the commissioner shall assemble an advisory committee of no fewer than nine nor more than 13 members who shall reflect a broad distribution of diverse perspectives on the health care system, including health care professionals, payers, third-party payers, consumer representatives, and up to three members of the public oversight commission.  The advisory committee shall review drafts and provide recommendations to the commissioner during the development of the plan.  Upon adoption of the plan, the advisory committee shall be dissolved.

(3)  The commissioner, with the advisory committee, shall conduct at least five public hearings, in different regions of the state, on the plan as proposed and shall give interested persons an opportunity to submit their views orally and in writing.  To the extent possible, the commissioner shall arrange for hearings to be broadcast on interactive television.  Not less than 30 days prior to any such hearing, the commissioner shall publish in the manner prescribed in section 174 of Title 1 the time and place of the hearing and the place and period during which to direct written comments to the commissioner.  In addition, the commissioner may create and maintain a website to allow members of the public to submit comments electronically and review comments submitted by others.

(4)  The commissioner shall develop a mechanism for receiving ongoing public comment regarding the plan and for revising it biannually, as needed, in consultation with the public oversight commission.

(5)  The commissioner shall seek grants to assist with the preparation of the health resource allocation plan and, in consultation with appropriate health care organizations and state entities, shall inventory and assess existing state health care data and expertise.  Based on this assessment and no later than January 15, 2004, the commissioner shall submit a report to the general assembly stating his or her recommendations regarding the professional assistance, budget, staff, and process needed to integrate available health care data and expertise into the health resource allocation plan.

(6)  The commissioner may retain such professional staff or other staff as needed to assist in his or her responsibilities under this section.  The reasonable expenses of such staff shall be funded to the maximum extent possible with grant money.  Any additional amounts needed, not to exceed $300,000.00, shall be assessed and collected from hospitals licensed under chapter 43 of this title, proportionate to their annual operating budgets.  The commissioner’s assessment authority under this subdivision shall begin on January 1, 2004 and shall expire on July 1, 2005. 

(7)  The plan or any revised plan proposed by the commissioner shall be the health resource allocation plan for the state after it is approved by the governor or upon passage of three months from the date the governor receives the plan, whichever occurs first, unless the governor disapproves the plan, in whole or in part.  If the governor disapproves, he or she shall specify the sections of the plan which are objectionable and the changes necessary to meet the objections.  The sections of the plan not disapproved shall become part of the health resource allocation plan.  Upon its adoption, the plan shall be submitted to the appropriate legislative committees.

(c)  Prior to adoption of a state health plan, the health resource management plan shall continue in effect until March 14, 1999.

Sec. 4.  18 V.S.A. § 9405a is added to read:

§ 9405a.      COMMUNITY NEEDS ASSESSMENT AND STRATEGIC PLANNING

Beginning on or before March 1, 2004, and biannually thereafter, each hospital shall conduct a community needs assessment.  The assessment shall identify and prioritize the health care needs of the service area or patient population for which a hospital provides services, and engage the public in the hospital’s strategic planning process.  It shall be accomplished in collaboration with community members, including other health care professionals in the community, local government officials, community organizations, and local businesses.  The process for assessing the community’s health care needs shall include at least one public meeting held solely for soliciting public comment, notice for which shall be provided pursuant to section 174 of Title 1.  The needs assessment shall be prepared in a uniform format approved by the commissioner and shall be summarized in the hospital’s community report.

Sec. 5.  18 V.S.A. § 9405b is added to read:

§ 9405b.  HOSPITAL COMMUNITY REPORTS

(a)  The commissioner, in consultation with representatives from the public oversight commission, hospitals, and other groups of health care professionals shall adopt rules establishing a standard format for community reports, as well as the contents, which shall include:

(1)  measures of quality and outcomes that are valid, reliable and useful, including comparisons to appropriate national benchmarks for high quality and successful outcomes;

(2)  measures of patient safety that are valid, reliable, and useful, including comparisons to appropriate industry benchmarks for safety; 

(3)  measures of the hospital’s financial health, including comparisons to appropriate national benchmarks for efficient operation and fiscal health;

(4)  a summary of the hospital’s budget, including revenue by source and quantification of cost shifting to private payers;

(5)  measures that provide valid, reliable, useful, and efficient information for payers and the public for the comparison of charges for higher volume health care services;

(6)  a plan for achieving openness for the purpose of ensuring transparency and inclusiveness in its formal information and strategic

decision-making affairs so that employees and other interested persons may have knowledge of and access to related management processes and outcomes.  The plan shall include a consumer complaint resolution process and shall identify the hospital officer or employee responsible for its implementation;

(7)  information concerning recently completed or ongoing quality improvement and patient safety projects;

(8)  a summary of the community needs assessment, including a description of strategic initiatives discussed with or derived from the assessment; the one-year and four-year capital expenditure plans; and the depreciation schedule for existing facilities; and

(9)  information on membership and governing body qualifications, a listing of the current governing body members, and a schedule of meetings of the hospital’s governing body, including times scheduled for public participation.

(b)  On or before January 1, 2005, and annually thereafter, the board of directors or other governing body of each hospital licensed under chapter 43 of this title shall publish its community report in a uniform format approved by the commissioner, and in accordance with the standards and procedures adopted by rule under this section, and shall hold one or more public hearings to permit community members to comment on the report.  Notice of meetings shall be by publication, consistent with section 174 of Title 1.  Hospitals located outside this state which serve a significant number of Vermont residents, as determined by the commissioner, shall be invited to participate in the community report process established by this subsection.

(c)  The community reports shall be provided to the public oversight commission and the commissioner.  The commissioner shall publish the reports on a public website and shall develop and include a format for comparisons of hospitals within the same categories of quality and financial indicators.

Sec. 6.  18 V.S.A. § 9406 is amended to read:

§ 9406.  EXPENDITURE ANALYSIS; UNIFIED HEALTH CARE BUDGET

(a)  Beginning July 1, 1994, and annually thereafter Annually, the commissioner shall adopt develop a unified health care budget and develop an expenditure analysis to promote the policies set forth in section 9401 of this title.

(1)  The budget shall:

(A)  Serve as the basic framework within which health care costs are controlled, resources directed, and quality and access assured.

(B)  Identify the total amount of money that has been and is projected to be expended annually for all health care services provided by health care facilities and providers in Vermont, and for all health care services provided to residents of this state.

(C)(B)  Be consistent with the health resource management plan or   Identify any inconsistencies with the state health plan, whichever applies and the health resource allocation plan.

(2)(C)  When preparing the budget, the commissioner shall consider   Analyze health care costs and the impact of the budget on those who receive, provide, and pay for health care services.

(3)(2)  Based on the advice and recommendations of the technical panel, the The commissioner shall adopt, by rule, the various sectors of the health care system to be separately identified in the budget, the methods and processes to be used to allocate resources among such sectors, the economic indicators to be used to define the parameters of the rate of growth in the cost of the system and various sectors of the system, and processes and criteria for responding to exceptional and unforeseen circumstances which affect the system and the budget.

(4)(3)  The commissioner shall enter into discussions with health care facilities and with health care provider bargaining groups created under section 9409 of this title concerning matters related to the unified health care budget.

(b)(1)  Annually the division of health care administration shall prepare a three‑year projection of health care expenditures made on behalf of Vermont residents, based on the format of the health care budget and expenditure analysis adopted by the commissioner under this section, projecting expenditures in broad sectors such as hospital, physician, home health, or pharmacy.  The projection shall include estimates for:

(A)  Expenditures expenditures for the health plans of any hospital and medical service corporation, health maintenance organizations, Medicaid program, or other health plan regulated by this state which covers more than five percent of the state population.; and

(B)  Expenditures expenditures for Medicare, all self-insured employers, and all other health insurance.

(2)  Each health plan payer identified under subdivision (1)(A) of this subsection may comment on the division’s proposed projections, including comments concerning whether the plan agrees with the proposed projection, alternative projections developed by the plan, and a description of what mechanisms, if any, the plan has identified to reduce its health care expenditures.  Comments may also include a comparison of the plan’s actual expenditures with the applicable projections for the prior year, and an evaluation of the efficacy of any cost containment efforts the plan has made.

(3)  The division’s projections prepared under this subsection shall be used as a tool in the evaluation of health insurance rate and trend filings with the department.  The division’s projections and shall be made available to the public oversight commission in connection with the hospital budget review process under subchapter 7 of this chapter, the certificate of need process under subchapter 5 of this chapter, and the development of the health resource allocation plan.

(4)  The division shall prepare a report of the final projections made under this subsection, and file the report with the general assembly on or before January 1, 1999, and annually thereafter on January 1 of each year.

Sec. 7.  18 V.S.A. § 9407 is amended to read:

§ 9407.  PUBLIC OVERSIGHT COMMISSION; TECHNICAL PANEL DUTIES

(a)  With the advice and consent of the senate, the governor shall appoint a public oversight commission to be composed of 13 members who shall reflect in the broadest sense the various health care needs and the demographic and geographic diversity of the state of Vermont.  Nine members shall be sitting members, and four members shall be designated alternates to be assigned to create a quorum or to replace any sitting member who has a conflict of interest.  The governor shall appoint a chair.  Members of the commission shall be appointed for staggered terms of three years and shall serve no more than two consecutive terms.  The commission shall review hospital budgets and certificate of need applications and make recommendations thereon to the commissioner.

(b)  The commissioner shall appoint a technical panel to be composed of nine members and shall designate a chair.  The panel shall include experts in medicine, law, business, hospital administration, economics and consumer health care issues.  The technical panel shall advise the public oversight commission and the commissioner on technical matters arising under this chapter relating to the unified health care budget, resource allocation, utilization review recommendations, hospital budgets, quality assurance, the state health plan, and make recommendations regarding amendments to the health resource management plan and any other matter the commissioner may deem appropriate.  The commissioner may impanel additional members as needed to advise on specific technical issues, who shall not serve as permanent members.

The public oversight commission shall:

(1)  review certificate of need applications and make recommendations to the commissioner;

(2)  review hospital one-year capital expenditure plans and four-year capital expenditure projections and engage in dialogue with hospitals regarding the health resource allocation plan and the health policy needs of the state;

(3)  consult with the commissioner on developing and updating hospital quality and financial measures; and

(4)  consult with the commissioner in the periodic updating and revision of the health resource allocation plan.

(c)  Members of the public oversight commission and members of the technical panel shall be compensated as provided in 32 V.S.A. § 1010(b) and (c).

(d)  The public oversight commission shall rely on the department for administrative support.

* * * Health Facility Planning * * *

Sec. 8.  18 V.S.A. § 9431 is amended to read:

§ 9431.  POLICY AND PURPOSE

(a)  It is declared to be the public policy of this state that the general welfare and protection of the lives, health and property of the people of this state require that all new institutional health services health care projects be offered or developed in a manner which avoids unnecessary duplication, and contains or reduces increases in the cost of delivering services, while at the same time maintain maintaining and improve improving the quality of and access to health care services, and promotes promoting rational allocation of health care resources in the state; and that the need, cost, type, level, quality, and feasibility of providing any new institutional health services health care project be subject to review and assessment prior to any offering or development. 

(b)  In order to carry out the policy goals of this subchapter, the department shall develop certificate of need guidelines to assist in its decision-making.  The certificate of need guidelines shall be consistent with the state health plan and the health resource allocation plan, upon its adoption.

Sec. 9.  18 V.S.A. § 9432 is amended to read:

§ 9432.  DEFINITIONS

As used in this subchapter:

(1)  “Ambulatory surgical center” means a facility or portion of a facility that provides surgical care not requiring an overnight stay.  The office of a dentist in which activities are limited to dentistry and oral or maxillofacial surgical procedures shall not be deemed an ambulatory surgical center for purposes of this subchapter.  In order to be considered an ambulatory surgical center, a facility shall meet all the following criteria:

(A)  Charge, or intend to charge, a facility fee in addition to professional fees for the services performed.

(B)  Have an operating room or recovery room in the facility.

(C)  Use an anesthesiologist or nurse anesthetist.

(D)  Provide one or more outpatient services for which Medicare coverage is provided.

(2)  “Applicant” means a person who has submitted an application or proposal requesting issuance of a certificate of need.

(3)  “Bed capacity” means the number of licensed beds operated by the facility under its most current license under chapter 43 of this title and of facilities under chapter 71 of Title 33.

(4)  “Capital expenditure” means an expenditure for the plant or equipment which, under generally accepted accounting principles, is not properly chargeable as an expense of operation and maintenance and includes acquisition by purchase, donation or, leasehold expenditure, or operating lease calculated over the length of the lease for plant or equipment, and includes assets having an expected life of at least three years.  A capital expenditure includes the cost of studies, surveys, designs, plans, working drawings, specifications and other activities essential to the acquisition, improvement, expansion or replacement of the plant and equipment.

(5)  “Construction” includes means actual commencement of any construction or fabrication of any new building, or addition to any existing facility, or any expenditure of more than $750,000.00 relating to the alteration, remodeling, renovation, modernization, improvement, relocation, repair, or replacement of a health care facility, including expenditures necessary for compliance with life and health safety codes.

(6)  “To develop,” when used in connection with health services, means to undertake activities which on their completion will result in the offer of a new institutional health service health care project, or the incurring of a financial obligation in relation to the offering of a service.

(7)  “Health care facility” means all facilities and institutions, including mobile facilities, whether public or private, proprietary or not for profit, which offer diagnosis, treatment, inpatient or ambulatory care to two or more unrelated persons, and the buildings in which those services are offered.  The term shall not apply to any facility institution operated by religious groups relying solely on spiritual means through prayer for healing, but shall include but is not limited to:

(A)  hospitals, including general hospitals, mental hospitals, chronic disease facilities, birthing centers, maternity hospitals and psychiatric facilities including any hospital conducted, maintained or operated by the state of Vermont, or its subdivisions, or a duly authorized agency thereof, and health related therapeutic community residences;

(B)  nursing homes, intermediate care facilities for the mentally retarded, homes for the terminally ill assisted living facilities, health maintenance organizations, home health agencies, outpatient diagnostic or therapy programs, kidney disease treatment centers, mental health agencies or centers, diagnostic imaging facilities, independent diagnostic laboratories, cardiac catheterization laboratories, radiation therapy facilities or any inpatient or ambulatory surgical, diagnostic or treatment center.

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

(9)  “Health services” mean activities and functions of a health care facility that are directly related to care, treatment, or diagnosis of patients.

(10)  “Home for the terminally ill” means a place providing services specifically for three or more dying people, including room, board, personal care and other assistance for the residents’ emotional, spiritual and physical well-being.

(11)  “Obligation” means an obligation for a capital expenditure which is deemed to have been incurred by or on behalf of a health care facility or health maintenance organization.

(12)(11)  “To offer,” when used in connection with health services, means that a health care provider holds itself out as capable of providing, or as having the means for the provision of, specified health services.

(13)(12)  “Annual operating expense” means that expense which, by generally accepted accounting principles, is incurred by a new health care service during the first fiscal year in which the service is in full operation after completion of the project.

(14)  “Cardiac catheterization laboratory” means a facility, or portion of a facility, in which cardiac catheterization procedures, whether diagnostic or therapeutic, are conducted.

Sec. 10.  18 V.S.A. § 9434 is amended to read:

§ 9434.  CERTIFICATE OF NEED; GENERAL RULES

(a)  No A nonhospital health care facility shall not develop, or have developed on its behalf a new institutional health service shall be offered or developed within this state by any person, health care project without a determination of need and issuance of a certificate of need by the commissioner, as provided in this subchapter“New institutional health service”  For purposes of this subsection, a “new health care project” includes the following:

(1)  the The construction, development, purchase, renovation, or other establishment of a new health care facility except for the purchase or lease of an existing health care facility other than the purchase of a hospital, or any capital expenditure by or on behalf of a health care facility, for which the capital cost exceeds $1,500,000.00.

(2)  any expenditure by or on behalf of a hospital in excess of $1,500,000.00 or any expenditure by or on behalf of any other health care facility in excess of $750,000.00, which, under generally accepted accounting principles, consistently applied, is a capital expenditure; 

(3)  acquisition by purchase, or by lease or other comparable arrangement, by or on behalf of a health care provider of a single piece of diagnostic or therapeutic equipment for which the cost, or in the case of a donation the value, is in excess of $500,000.00.  For purposes of this subdivision, the purchase or lease of one or more articles of diagnostic or therapeutic equipment which are necessarily interdependent in the performance of their ordinary functions or which would constitute any health care facility included under section 9432(10)(B) of this title, as determined by the commissioner, shall be considered together in calculating the amount of an expenditure.  The commissioner’s determination of functional interdependence of items of equipment under this subdivision shall have the effect of a final decision and is subject to appeal under this subchapter.

(4)  a A change from one licensing period to the next in the number of licensed beds of a health care facility through the addition or conversion, or through the relocation from one physical facility or site to another;.

(5)(3)  the offering of health services in or through a health care facility which were not offered on a regular basis in or through such health care facility within the twelve-month period prior to the time such services would be offered if such services have an annual operating expense in excess of $300,000.00 or the  The offering of any home health service;. 

(6)  the purchase of an existing hospital;

(7)  the offering of any cardiac catheterization laboratory service

(4)  The purchase, lease, or other comparable arrangement of a single piece of durable medical equipment for which the cost, or in the case of a donation the value, is in excess of $1,000,000.00.  For purposes of this subdivision, the purchase or lease of one or more articles of diagnostic or therapeutic equipment which are necessarily interdependent in the performance of their ordinary functions or which would constitute any health care facility included under subdivision 9432(7)(B) of this title, as determined by the commissioner, shall be considered together in calculating the amount of an expenditure.  The commissioner’s determination of functional interdependence of items of equipment under this subdivision shall have the effect of a final decision and is subject to appeal under this subchapter.

(5)  The offering of a health care service or technology having an annual operating expense which exceeds $500,000.00 for the next budgeted fiscal year, if the service or technology was not offered or employed by the health care facility within the previous three fiscal years.

(b)  A nonhospital health care facility that proposes to develop a project described in subdivision (1) or (4) of subsection (a) of this section which is exempt from the requirements of this subchapter solely because the cost or value of the proposed project does not exceed the financial thresholds of those subdivisions shall file a letter of intent with the commissioner, if the cost or value is greater than $750,000.00.  Upon review, the commissioner may require the health care facility to obtain a certificate of need if, within 30 days of receiving the letter of intent, he or she finds that the proposed development is inconsistent with the health resource allocation plan, upon its adoption, and:

(1)  has the potential for significantly increasing utilization or rates; or

(2)  substantially changes the type, scope, or volume of service.

(c)  A hospital shall not develop, or have developed on its behalf a new health care project without issuance of a certificate of need by the commissioner.  For purposes of this subsection, a “new health care project” includes the following:

(1)  The construction, development, purchase, renovation or other establishment of a health care facility, or any capital expenditure by or on behalf of a hospital, for which the capital cost exceeds $3,000,000.00.

(2)  The purchase, lease, or other comparable arrangement of a single piece of durable medical equipment for which the cost, or in the case of a donation the value, is in excess of $1,000,000.00.  For purposes of this subdivision, the purchase or lease of one or more articles of diagnostic or therapeutic equipment which are necessarily interdependent in the performance of their ordinary functions or which would constitute any health care facility included under subdivision 9432(7)(B) of this title, as determined by the commissioner, shall be considered together in calculating the amount of an expenditure.  The commissioner’s determination of functional interdependence of items of equipment under this subdivision shall have the effect of a final decision and is subject to appeal under this subchapter.

(3)  The offering of a health care service or technology having an annual operating expense which exceeds $500,000.00 for the next budgeted fiscal year, if the service or technology was not offered or employed by the hospital within the previous three fiscal years.

(4)  A change from one licensing period to the next in the number of licensed beds of a health care facility through addition or conversion, or through relocation from one physical facility or site to another.

(d)  A hospital that proposes to develop a project described in subdivision (c)(1) or (2) of this section which is exempt from the requirements of this subchapter solely because the cost or value of the proposed project does not exceed the financial thresholds of those subdivisions shall file a letter of intent with the commissioner, if the cost or value is greater than $1,500,000.00.  Upon review, the commissioner may require the health care facility to obtain a certificate of need if, within 30 days of receiving the letter of intent, he or she finds that the proposed development is inconsistent with the health resource allocation plan, upon its adoption, and:

(1)  has the potential for significantly increasing utilization or rates;

(2)  substantially changes the type, scope, or volume of service; or

(3)  has the potential to place an undue financial burden on the hospital’s resources.

(e)  In the case of a project which requires a certificate of need under this section, expenditures for which are anticipated to be in excess of $20,000,000.00, the applicant first shall secure a conceptual development phase certificate of need, in accordance with the standards and procedures established in this subchapter, which permits the applicant to make expenditures for architectural services, engineering design services, and any other planning services needed in connection with the project.  Upon completion of the conceptual development phase of the project, and before offering or further developing the project, the applicant shall secure a final certificate of need, in accordance with the standards and procedures established in this subchapter.  Applicants shall not be subject to sanctions for failure to comply with the provisions of this subsection if such failure is solely the result of good faith reliance on verified project cost estimates issued by qualified persons, which cost estimates would have lead a reasonable person to conclude the project was not anticipated to be in excess of $20,000,000.00 and therefore not subject to this subsection.

(f)  If the commissioner determines that a person required to obtain a certificate of need under this subchapter has separated a single project into components in order to avoid cost thresholds or other requirements under this subchapter, the person shall be required to submit an application for a certificate of need for the entire project, and the commissioner may proceed under section 9445 of this title.  The commissioner’s determination under this subsection shall have the effect of a final decision and is subject to appeal under this subchapter.

(g)  Beginning January 1, 2005, and biannually thereafter, the commissioner may by rule adjust the monetary jurisdictional thresholds contained in this section.  In doing so, the commissioner shall reflect the same categories of health care facilities, services, and programs recognized in this section.  Any adjustment by the commissioner shall not exceed the consumer price index rate of inflation.

Sec. 11.  18 V.S.A. § 9435 is amended to read:

§ 9435.  EXCLUSIONS

(a)  Excluded from this subchapter are offices of physicians, dentists, or other practitioners of the healing arts, meaning the physical places which are occupied by such providers on a regular basis in which such providers perform the range of diagnostic and treatment services usually performed by such providers on an outpatient basis.

(b)  The provisions of subsection (a) of this section shall not apply to the purchase of diagnostic or therapeutic equipment which would be unless they are subject to review under subdivision (a)(3) of section 9434 9434(a)(4) of this title.  Also excluded from this subchapter are community mental health centers supervised by the commissioner of developmental and mental health services under chapter 177 of this title, provided the commissioner of developmental and mental health services makes a written approval of the proposed health care project.  The community mental health center shall submit a copy of the approval with a letter of intent to the commissioner.

(c)(b)  The provisions of subsection (a) of this section shall not apply to offices owned or operated by a hospital or its subsidiary, parent, or holding company, outpatient diagnostic or therapy programs, kidney disease treatment centers, mental health agencies or centers, independent diagnostic laboratories, cardiac catheterization laboratories, radiation therapy facilities, ambulatory surgical centers, and diagnostic imaging facilities and similar facilities owned or operated by a physician, dentist, or other practitioner of the healing arts.

Sec. 12.  REPEAL

Section 9436 of Title 18 (general criteria for granting a certificate of need) is repealed.

Sec. 13.  18 V.S.A. § 9437 is amended to read:

§ 9437.  REQUIRED FINDINGS CRITERIA

In addition to the provisions of section 9436 of this title, with regard to any proposed new institutional health service for the provision of health services, the commissioner shall not grant a certificate of need, or otherwise find that such proposed new institutional health services are needed, unless the commissioner finds that:

(1)  superior alternatives to such services, in terms of cost, efficiency, and appropriateness, do not exist, and the development of such alternatives is not practicable;

(2)  in the case of new construction, alternatives to new construction, such as modernization or sharing arrangements, have been considered and have been implemented to the maximum extent practicable;

(3)  in the absence of the proposed new service, patients would experience serious problems in terms of costs, availability, or, or such other difficulties as may be identified by the commissioner, in obtaining care of the type proposed;

(4)  in the case of a proposal for the addition of beds for the provision of skilled nursing or intermediate care, the number of beds to be approved is not inconsistent with the considerations identified under section 9439(e) of this title; and

(5)  The proposed new institutional health service is consistent with the certificate of need guidelines published by the department in accordance with its rules, and is within the portion of the unified health care budget, applicable to the proposed health care facility.

In making a determination as to whether a certificate of need should be issued, the commissioner and the commission shall determine that:

(1)  the application is consistent with the certificate of need guidelines and the health resource allocation plan;

(2)  the cost of the project is reasonable, because:

(A)  the applicant’s financial condition will sustain any financial burden likely to result from completion of the project;

(B)  the project will not result in an undue increase in the costs of medical care; and

(C)  less expensive alternatives do not exist, would be unsatisfactory, or are not feasible or appropriate;

(3)  there is an identifiable, existing, or reasonably anticipated need for the proposed project which is appropriate for the applicant to provide;

(4)  the project will improve the quality of health care in the state or provide greater access to health care for Vermont’s residents, or both;

(5)  the project will not have an undue adverse impact on any other existing services provided by the applicant; and

(6)  the project will serve the public good.

Sec. 14.  18 V.S.A. § 9439(f) is added to read:

(f)  The commissioner shall establish, by rule, annual cycles for the review of applications for certificates under this subchapter, in addition to the review cycles for skilled nursing and intermediate care beds established under subsections (d) and (e) of this section.  A review cycle may include in the same group some or all of the types of projects subject to certificate of need review.  Such rules may exempt emergency applications, pursuant to subsection 9440(d) of this title.

Sec. 15.  18 V.S.A. § 9440 is amended to read:

§ 9440.  PROCEDURES

(a)(1)  The application shall be in such form and contain such information as the commissioner establishes.  In addition, the commissioner may require of an applicant any or all of the following information that the commissioner deems necessary:

(1)(A)  institutional utilization data, including an explanation of the unique character of services and a description of case mix;

(2)(B)  a population based description of the institution’s service area;

(3)(C)  the applicant’s financial statements;

(4)(D)  third party reimbursement data;

(5)(E)  copies of feasibility studies, surveys, designs, plans, working drawings, or specifications developed in relation to the proposed project;

(6)(F)  annual reports and three-year long-range four-year long range plans; and

(G)  leases, contracts, or agreements of any kind that might affect quality of care or the nature of services provided;

(H)  the status of all certificates issued to the applicant under this subchapter during the three years preceding the date of the application.  As a condition to deeming an application complete under this section, the commissioner may require that an applicant meet with the commissioner to discuss the resolution of the applicant’s compliance with those prior certificates; and

(7)(I)  additional information as needed by the commissioner.

(2)  In addition to the information required for submission, an applicant may submit, and the commissioner shall consider, any other information relevant to the application or the review criteria.

(b)  The application process shall be as follows:

(1)  Applications shall be accepted only at such times as the commissioner shall establish by rule.

(1)(2)  Prior to filing an application for a certificate of need, an applicant shall file a letter of intent with the commissioner no less than 30 days or, in the case of review cycle applications under section 9439 of this title, no less than 45 days prior to the date on which the application is to be filed.  The letter of intent shall form the basis for determining the applicability of this subchapter to the proposed expenditure or action.  A letter of intent shall become invalid if an application is not filed within six months of the date that the letter of intent is received or, in the case of review cycle applications under section 9439 of this title, within such time limits as the commissioner shall establish by rule.  Public notice of such letters of intent shall be provided in newspapers having general circulation in the region of the state affected by the letter of intent.  The notice shall identify the applicant, the proposed new health care project, and the date by which a competing application or petition to intervene must be filed.  In addition, a copy of the public notice shall be sent to the clerk of the municipality in which the health care facility is located.  Upon receipt, the clerk shall post the notice in or near the clerk’s office and in at least two other public places in the municipality.

(2)(3)  Upon a determination by The commissioner shall review each letter of intent and, within 15 days, determine whether the project described in the letter will require a certificate of need.  If the commissioner determines that a certificate of need is required for a proposed expenditure or action, an application for a certificate of need shall be filed before development of the project begins.

(3)  The commissioner, upon making an interim determination on the basis of a letter of intent that a project will be uncontested, may accept a preliminary application immediately upon making such a determination and issue proper public notice.  If no interested party comes forth, the commissioner may then formally declare the application uncontested and may issue a certificate of need without further process or may declare, on its own motion, that the application is contested.

(4)  Within 15 days or, in the case of review cycle applications under section 9439 of this title, within 30 days of receipt of an application, the commissioner shall notify the applicant that the application contains all necessary information required and is complete, or that additional information is required.

(5)  If an applicant fails to respond to an information request under subdivision (4) of this subsection within six months, or, in the case of review cycle applications under section 9439 of this title, within such time limits as the commissioner shall establish by rule, the application will be deemed inactive.  If an applicant fails to respond to an information request within 12 months, or, in the case of review cycle applications under section 9439 of this title, within such time limits as the commissioner shall establish by rule, the application will become invalid.

(6)  For purposes of this section, “interested party” status shall be granted to persons or organizations representing the interests of persons who demonstrate that they will be substantially, adversely and directly affected by the new institutional health service health care project under review or that they will materially assist.  Persons able to render material assistance to the commissioner by providing nonduplicative evidence relevant to the determination may be admitted in an amicus curiae capacity but shall not be considered parties.  A petition seeking party or amicus curiae status must be filed within 20 days following public notice of the letter of intent, or within 20 days following public notice that the application is complete.  The commissioner shall grant or deny a petition to intervene under this subdivision within 15 days after the petition is filed.  The commissioner shall grant or deny the petition within an additional 30 days upon finding that good cause exists for the extension.  Once interested party status is granted, the commissioner shall provide the information necessary to enable the party to participate in the review process.  Such information includes information about procedures, copies of all written correspondence, and copies of all entries in the application record.

(7)  Once an application has been deemed to be complete, public notice of the application will be provided in newspapers having general circulation in the region of the state affected by the application.  The notice shall identify the applicant, the proposed new institutional health service health care project, and the date by which a competing application under section 9439 of this title or a petition to intervene must be filed.

(8)  The health care ombudsman’s office established under section 4089j of Title 8 or, in the case of nursing homes, the long term care ombudsman’s office established under section 7502 of Title 33, is authorized but not required to participate in any administrative or judicial review of an application under this subchapter and shall be considered an interested party in such proceedings upon filing a notice of intervention with the commissioner.

(c)  The review process shall be as follows:

(1)  The public oversight commission shall review:

(A)  the The application materials provided by the applicant and the arguments raised in favor of or against the proposal, if any, and may request the technical panel’s advice, recommendations and comments on the merits of the application.

(B)  The assessment of the applicant’s materials provided by the department.

(C)  Any information, evidence, or arguments raised by interested parties or amicus curiae, and any other public input.

(2)  The public oversight commission shall hold a public hearing during the course of a review if requested by persons directly affected by the review.

(3)  The public oversight commission shall make a written findings and a recommendation to the commissioner in favor of or against each application.  A record shall be maintained of all information reviewed in connection with each application.

(4)  A review shall be completed and the commissioner shall make a final decision within 120 days after the date of notification under subdivision (b)(4) of this section.  Whenever it is not practicable to complete a review within 120 days, the commissioner may extend the review period up to an additional 30 days.  Any review period may be extended with the written consent of all applicants the applicant and all other applicants in the case of a review cycle process.

(4)(5)  After reviewing each application and after considering the recommendations of the public oversight commission, the commissioner shall make a decision either to issue a certificate of need or to deny the application for a certificate of need.  Notice of the decision shall be sent to the applicant.  This notice shall state the basis of the decision.  The decision shall be in the form of an approval in whole or in part, or an approval subject to such conditions as the commissioner may impose in furtherance of the purposes of this subchapter, or a denial.  In granting a partial approval or a conditional approval the commissioner shall not mandate a new health care project not proposed by the applicant or mandate the deletion of any existing service.  Any partial approval or conditional approval must be directly within the scope of the project proposed by the applicant and the criteria used in reviewing the application.

(6)  Before rendering a final decision denying an application in whole or in part, or approving a contested application, the commissioner shall serve the parties with notice of a proposed decision containing a brief description of the findings of fact and conclusions of law supporting his or her proposed decision, and shall provide the parties an opportunity to file exceptions and present briefs and oral argument to the commissioner.

(7)  Notice of the final decision shall be sent to the applicant, competing applicants, and interested parties.  This notice shall make written findings and conclusions stating the basis of the decision.

(8)  The commissioner shall establish rules governing the compilation of the record used by the public oversight commission and the commissioner in connection with decisions made on applications filed and certificates issued under this subchapter.

(d)  The commissioner shall adopt rules governing procedures for the expeditious processing of applications including those regarding expenditures for replacement, repair, rebuilding, or re-equipping of any part of a health care facility or health maintenance organization destroyed or damaged as the result of fire, storm, flood, act of God, or civil disturbance, or any other circumstances beyond the control of the applicant where the commissioner finds that the circumstances require action in less time than normally required for review.  If the nature of the emergency requires it, an application under this subsection may be reviewed by the commissioner only, without notice and opportunity for public hearing or intervention by any party. 

(e)  Any party applicant, competing applicant, or interested party aggrieved by a final decision of the commissioner under this section may appeal the decision to the supreme court.  If the commissioner’s decision is contrary to the recommendation of the public oversight commission, the commissioner shall have the burden of establishing the grounds for the decision by a preponderance of the evidence.

Sec. 16.  18 V.S.A. § 9440a is added to read:

§ 9440a.  APPLICATIONS, INFORMATION, AND TESTIMONY; OATH REQUIRED

(a)  Each application filed under this subchapter, any information required or permitted to be submitted in connection with an application or with the monitoring of an order, decision or certificate issued by the commissioner, and any testimony taken before the public oversight commission, the commissioner, or a hearing officer appointed by the commissioner shall be submitted or taken under oath, on a form and in a manner prescribed by the commissioner.  The authority granted to the commissioner under this section is in addition to any other authority granted to the commissioner under law.

(b)  Each application shall be filed by the applicant’s chief executive officer under oath, as provided by subsection (a) of this section.  The commissioner may direct that information submitted with the application be submitted under oath by persons with personal knowledge of such information.

     (c)  A person who knowingly makes a false statement under oath or who knowingly submits false information under oath to the commissioner or the public oversight commission or a hearing officer appointed by the commissioner or who knowingly testifies falsely in any proceeding before the commissioner or the public oversight commission or a hearing officer appointed by the commissioner shall be guilty of perjury and punished as provided in section 2901 of Title 13.

Sec. 17.  18 V.S.A. § 9441 is amended to read:

§ 9441.  FEES

(a)  The commissioner shall charge a fee for the filing of certificate of need applications.  The fee shall be calculated at the rate of 0.125 percent of project costs.

(b)  The maximum fee shall not exceed $20,000.00 and the minimum filing fee is $250.00 regardless of project cost.  No fee shall be charged on projects amended as part of the review process.

(c)  The commissioner may retain such additional professional or other staff as needed to assist in particular proceedings under this subchapter and may assess and collect the reasonable expenses for such additional staff from the applicant. The commissioner, on petition by the applicant and opportunity for hearing, may reduce such assessment upon a proper showing by the applicant that such expenses were excessive or unnecessary.  The authority granted to the commissioner under this section is in addition to any other authority granted to the commissioner under law.

Sec. 18.  18 V.S.A. § 9442 is amended to read:

§ 9442.  RECOMMENDATION AND DECISION REGARDING CERTIFICATE OF NEED; ISSUANCE OF CERTIFICATE OF NEED BONDS

Upon completion of its review, the commissioner shall render a final decision on the application, based solely upon the criteria which were duly adopted and published at least 90 days prior to the submission of the original application under review, the evidence introduced into the record, and facts which have been officially noticed.  The decision shall be in the form of an approval in whole or in part, or a denial.  In granting a partial approval the commissioner shall not mandate any new institutional health service not proposed by the applicant or mandate the deletion of any existing service.  Any partial approval must be directly within the scope of the project proposed by the applicant and the criteria used in reviewing the application.  In the case of a final decision to approve, in whole or in part, an application regarding a proposed new institutional health service, the commissioner shall issue a certificate of need to the applicant.  The commissioner shall make a decision either to approve or deny within the time period specified for the review.

In any circumstance in which bonds are to be or may be issued in connection with a new health care project subject to the provisions of this subchapter, the certificate of need shall include the requirement that all information required to be provided to the bonding agency shall be provided also to the commissioner within a reasonable period of time.  The commissioner shall be authorized to obtain any information from the bonding agency deemed necessary to carry out the duties of monitoring and oversight of a certificate of need.  The bonding agency shall consider the recommendations of the commissioner in connection with any such proposed authorization.

Sec. 19.  18 V.S.A. § 9445 is amended to read:

§ 9445.  ENFORCEMENT

(a)  Any person who offers or develops any new institutional health service health care project within the meaning of this subchapter without first obtaining a certificate of need as required herein, or who otherwise violates any of the provisions of this subchapter, shall be subject to the following sanctions:

(1)  The state shall not issue a license to any health care facility to operate, offer, or develop any new institutional health service health care project in violation of this subchapter and without a certificate of need or certificate of exemption issued pursuant thereto.

(2)  The state shall not furnish from any reimbursement program administered by the state, nor shall any entity chartered under the laws of this state or any person doing business in the state provide reimbursement for any new institutional health service health care project offered or developed in contravention of the requirements of this subchapter.

(3)  In addition to all other sanctions, if any person offers or develops any new institutional health service health care project without first having been issued a certificate of need or certificate of exemption therefore, or violates any other provision of this subchapter or any lawful rule or regulation promulgated thereunder, the commissioner and health care providers or consumers located in the state shall have standing to maintain a civil action in the superior court of the county wherein such alleged violation has occurred, or wherein such person may be found, to enjoin, restrain, or prevent such violation.  Upon written request by the commissioner, it shall be the duty of the attorney general of the state to furnish appropriate legal services and to prosecute an action for injunctive relief to an appropriate conclusion, which shall not be reimbursed under subdivision (2) of this subsection.

(b)  Any person who violates this subchapter or rules adopted hereunder shall be subject to a fine of not less than $1,000.00 nor more than $10,000.00 for each violation which shall not be reimbursed under subdivision (2) of subsection (a) of this section.  After notice and an opportunity for hearing, the commissioner may impose on a person who knowingly violates a provision of this subchapter, or a rule adopted pursuant to this subchapter, a civil administrative penalty of no more than $40,000.00, or in the case of a continuing violation, a civil administrative penalty of no more than $100,000.00 or one-tenth of one percent of the gross annual revenues of the health care facility, whichever is greater, which shall not be reimbursed under subdivision (a)(2) of this section.  A person aggrieved by a decision of the commissioner under this subdivision may appeal the commissioner’s decision to the supreme court.

* * *  Bonds  * * *

Sec. 20.  16 V.S.A. § 3856(j) is added to read:

(j)  In the case of bonds issued in connection with a new health care project subject to the provisions of subchapter 5 of chapter 221 of Title 18, the agency shall not authorize bonds on behalf of an eligible institution defined under subdivision 3851(c)(5) of this title, unless the project and the capital expenditures associated with the project have been approved by the commissioner of banking, insurance, securities, and health care administration, pursuant to subchapter 5 of chapter 221 of Title 18.  The agency shall consider the recommendations of the commissioner in connection with any such proposed authorization.

* * * Charges for Examinations * * *

Sec. 21.  8 V.S.A. § 18 is amended to read:

§ 18.  CHARGES FOR EXAMINATIONS, APPLICATIONS, REVIEWS AND INVESTIGATIONS

     Every person subject to regulation by the department shall pay the department the reasonable costs of any examination, review, or investigation that is conducted or caused to be conducted by the department of such person, or of any application or filing made by such person, or of any examination, review, or investigation of any order, decision, or certificate issued by the commissioner, at a rate to be determined by the commissioner.  The department may retain experts or other persons who are independently practicing their professions to assist in such examination, review, or investigation.  The department shall be reimbursed for all reasonable costs and expenses, including the reasonable costs and expenses of such persons retained by the department, by the person examined, submitting the application or filing reviewed or , investigated, or subject to or under the jurisdiction of an order, decision, or certificate issued by the commissioner under this title or under Title 18. A An examination, review, or investigation subject to this section shall include, but not be limited to, a an examination, review, or investigation of any application, information, rate filing, or form filing submitted, or any order, decision, or certificate issued under this title, or under Title 18. In unusual circumstances, the commissioner may waive reimbursement for the costs and expenses of any review in the interests of justice. Those institutions subject to assessment or fees for services provided under section 19 of this title shall not be billed for a regular examination performed under subsection 11501(a) of this title or for services for which such fees under subsection 19(a) of this title have been paid.  The authority granted to the commissioner by this section is in addition to any other authority granted to the commissioner by law.

* * * Hospital Budget Reviews * * *

Sec. 22.  18 V.S.A. § 9453 is amended to read:

§ 9453.  POWERS AND DUTIES

(a)  With the advice and recommendations of the technical panel, the The commissioner shall:

(1)  adopt uniform formats that hospitals shall use to report financial, scope-of-services, and utilization data and information;

(2)  designate a data organization with which hospitals shall file financial, scope-of-services, and utilization data and information; and

(3)  designate a data organization or organizations to process, analyze, store, or retrieve data or information.

(b)  To effectuate the purposes of this subchapter the commissioner may adopt rules under chapter 25 of Title 3.

Sec. 23.  18 V.S.A. § 9454 is amended to read:

§ 9454.  HOSPITALS; DUTIES

(a)  Hospitals shall file the following information at the time and place and in the manner established by the commissioner:

(1)  a budget for the forthcoming fiscal year;

(2)  financial information, including but not limited to costs of operation, revenues, assets, liabilities, fund balances, other income, rates, charges, units of services, and wage and salary data;

(3)  scope-of-service and volume-of-service information, including but not limited to inpatient services, outpatient services, and ancillary services by type of service provided;

(4)  utilization information;

(5)  new hospital services and programs proposed for the forthcoming fiscal year;

(6)  a projected three-year capital expenditure budget known depreciation schedules on existing buildings, a four-year capital expenditure projection, and a one-year capital expenditure plan; and

(7)  such other information as the commissioner may require.

(b)  Hospitals shall adopt a fiscal year which shall begin on October 1.

Sec. 24.  18 V.S.A. § 9456 is amended to read:

§ 9456.  BUDGET REVIEW

(a)  The commissioner shall conduct reviews of each hospital’s proposed budget based on the information provided pursuant to this subchapter, and in accordance to with a schedule established by the commissioner.

(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 health resource allocation plan;

(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;

(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

(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 allocation 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;

(4)  reflect budget performances for prior years; and

(5)  include a finding that the analysis provided in subdivision (b)(10) of this section is a reasonable methodology for reflecting a reduction in net revenues for non-Medicaid payers.

(d)  Beginning October 1, 1996, and annually thereafter Annually, the commissioner shall consider the recommendations of the public oversight commission and establish a budget for each hospital by September 15 followed by a written decision by October 1.  Each hospital shall operate within the budget established under this section.

(e)  The commissioner may establish, by rule, a process to define, on an annual basis, criteria for hospitals to meet, such as utilization and inflation benchmarks.  The rule may shall permit the commissioner to waive one or more of the review processes listed in subsection (b) of this section, but not for more than one year two years consecutively.  Tertiary teaching hospitals shall not be eligible for a waiver.

(f)  The commissioner may, upon application, adjust a budget established under this section upon a showing of need based upon exceptional or unforeseen circumstances in accordance with the criteria and processes established under section 9406 9405 of this title.

(g)  The commissioner may request, and a hospital shall provide, information determined by the commissioner to be necessary to determine whether the hospital is operating within a budget established under this section.

(h)(1)  If a hospital violates a provision of this section, the commissioner may maintain an action in the superior court of the county in which the hospital is located to enjoin, restrain or prevent such violation.

(2)  After notice and an opportunity for hearing, the commissioner may impose on a person who knowingly violates a provision of this subchapter, or a rule adopted pursuant to this subchapter, a civil administrative penalty of no more than $40,000.00, or in the case of a continuing violation, a civil administrative penalty of no more than $100,000.00 or one-tenth of one percent of the gross annual revenues of the hospital, whichever is greater.

(3)(A)  The commissioner shall require the officers and directors of a hospital to file under oath, on a form and in a manner prescribed by the commissioner, any information designated by the commissioner and required pursuant to this subchapter.  The authority granted to the commissioner under this subsection is in addition to any other authority granted to the commissioner under law.

(B)  A person who knowingly makes a false statement under oath or who knowingly submits false information under oath to the commissioner or to the public oversight commission or to a hearing officer appointed by the commissioner or who knowingly testifies falsely in any proceeding before the commissioner or the public oversight commission or a hearing officer appointed by the commissioner shall be guilty of perjury and punished as provided in section 2901 of Title 13.

* * * Report on Hospital Collaboration * * *

Sec. 25.  REPORT ON COLLABORATION AMONG HOSPITALS

The commissioner of banking, insurance, securities, and health care administration shall invite Fletcher Allen Health Care and the Dartmouth Hitchcock Medical Center to identify fields of excellence or discrete areas of specialty focus for the respective health care institutions, and to make recommendations for collaboration.  The commissioner shall report to the general assembly on or before December 15, 2003 and annually thereafter on the progress of the collaboration.

Sec. 26.  STATUTORY REVISION

(a)  In chapter 221 of Title 18, all references to the “technical panel” shall be stricken.

(b)  In chapter 221 of Title 18, the phrase “institutional health service” shall be replaced with the phrase “health care project.”

Sec. 27.  EFFECTIVE DATE

This act shall take effect on July 1, 2003, except that:

(1)  Secs. 6, 7, and 22 through 24 shall apply to hospital budget reviews for fiscal years 2005 and thereafter.

(2)  Sec. 18 shall take effect on passage and shall apply to the certificate of need applications pending on or before the date of passage.

(3)  Secs. 12 and 13 shall take effect on July 1, 2005.

(4)  This act shall not apply to certificate of need applications pending on July 1, 2003.

(Committee Vote: 5-0-0)

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

The Committee recommends that the Senate propose to the House to amend the bill by as recommended by the Committee on Health and Welfare with the following amendment thereto:

In Sec. 3, 18 V.S.A. §9405(b)(6) by deleting the date “January 1, 2004” and inserting in lieu thereof the date July 1, 2003,

(Committee Vote: 6-0-1)

(For House amendments, see House Journal for April 1, 2003, page 420; April 2, 2003, page 455.)

H. 175

An act relating to consolidated environmental appeals and revisions of land use development law.

Reported favorably with recommendation of proposal of amendment by Senator Lyons for the Committee on Natural Resources and Energy.

The Committee recommends that the Senate propose to the House to amend the bill by as follows:

First:  By striking out Secs. 1 through 67 in their entirety and inserting in lieu thereof the following:

Sec. 1.  10 V.S.A. chapter 220 is added to read:

Chapter 220.  Environmental Permitting Review, Issuance, and Appeals

§ 8501.  PURPOSE

It is the purpose of this chapter to enable and encourage people to get involved in the environmental permitting process at the initial stages of review by the permitting authority by providing adequate notice and scoping of proposed projects, with the hope of identifying and resolving issues and concerns amicably at the initial stages.

§ 8502.  DEFINITIONS

As used in this chapter: 

(1)  “District coordinator” means a district coordinator under chapter 151 of this title;

(2)  “Environmental board” means the environmental board established under chapter 151 of this title;

(3)  “Person” means any individual, partnership, company, corporation, association, unincorporated association, joint venture, trust, municipality, the state of Vermont or any agency, department or subdivision of the state, any federal agency, or any other legal or commercial entity;

(4) “Person aggrieved” means any person who demonstrates an interest which may be affected by the outcome of the proceeding and who is so situated that the disposition of the proceeding may as a practical matter impair or impede the person’s ability to protect that interest.

(5)  “Secretary” means the secretary of the agency of natural resources or the secretary’s duly authorized representative.  For the purposes of this chapter, “secretary” also means the commissioner of the department of environmental conservation, the commissioner of the department of forests, parks and recreation, and the commissioner of the department of fish and wildlife, with respect to those statutes that refer to the authority of that commissioner or department.

(6)  “Water resources board” means the water resources board established under chapter 37 of this title.

§ 8503.  APPLICABILITY

(a)  This chapter shall govern all applications for permits, or other applications or requests requiring the act or decision of the secretary, and appeals of those permits, acts, or decisions of the secretary, excluding enforcement actions under chapters 201 and 211 of this title, and rulemaking under the following authorities:

(1)  10 V.S.A. chapter 23 (air pollution control).

(2)  10 V.S.A. chapter 37 (water resources management).

(3)  10 V.S.A. chapter 41 (regulation of stream flow).

(4)  10 V.S.A. chapter 43 (dams).

(5)  10 V.S.A. chapter 47 (water pollution control).

(6)  10 V.S.A. chapter 48 (groundwater protection).

(7)  10 V.S.A. chapter 55 (aid to municipalities for water supply, pollution abatement and sewer separation).

(8)  10 V.S.A. chapter 56 (public water supply).

(9)  10 V.S.A. chapter 59 (underground liquid storage tanks).

(10)  10 V.S.A. chapter 64 (potable water supply and wastewater permit).

(11)  10 V.S.A. chapter 83 (regulation of heavy cutting).

(12)  10 V.S.A. chapter 123 (protection of endangered species).

(13)  10 V.S.A. chapter 159 (waste management).

(14)  29 V.S.A. chapter 11 (encroachment into lakes and ponds).

(b)  This chapter shall govern all applications for and appeals of permits or other acts or decisions of the environmental board or a district commission under chapter 151 of this title.

§ 8504.  DETERMINING PROJECT SCOPE 

(a)  In conjunction with the secretary, an applicant with a project that requires one or more permits, certifications, or other authorizations subject to the provisions of this chapter, except for professional licenses, may prepare a project review sheet.  The project review sheet shall indicate:

(1)  all permits required for the entire project, including permits issued by the secretary and land use permits issued by the district commission or environmental board, even where the pending application relates only to a portion of the entire project; and

(2)  a project identification number assigned by the secretary for use on all applications, notices, permits, and decisions issued by the secretary.

(b)  The project review sheet shall be prepared based on the information submitted by the project applicant.  If, based on supplemental information, or for other good cause, the secretary determines that a project will require other permits, certifications, or other authorizations, or the district coordinator or the environmental board determines that a land use permit under chapter 151 of this title is required notwithstanding the fact that the permit requirement did not appear on the initial project review sheet, the project review sheet shall be amended.  Any failure by the applicant, the secretary, a district coordinator, or the board to identify a required permit, certification, or authorization issued by the secretary, or a land use permit issued under chapter 151 of this title, on the project review sheet shall not constitute a waiver of jurisdiction.

§ 8505.  PUBLIC NOTICE AND OPPORTUNITY FOR REVIEW

(a)  An applicant for a permit, certification, or other authorization issued by the secretary who has a completed project review sheet may elect to initiate a project scoping process, or that process shall be initiated upon request of the secretary or a district commission.  If a project scoping process is to be initiated, upon completion of the project review sheet or upon a determination that an application for any one or more permits, certifications, or other authorization identified on the project review sheet is administratively complete, whichever occurs first, the secretary shall schedule a scoping conference and create a public notice of the project that shall include, at a minimum, the following information:

(1)  the name of the project applicant;

(2)  the project identification number;

(3)  the location of the project;

(4)  a brief description of the project;

(5)  the name, address, and telephone number of the person or persons to contact in order to submit comments, receive further information, and be placed on a status report mailing list for the project;

(6)  the closing date of the comment period and the address to which the comments must be sent;

(7)  the date, time, and place of the scoping conference; and

(8)  the address where a complete project review sheet or complete application may be reviewed.

(b)  At least 30 days prior to the date of the scoping conference, the applicant shall send a complete copy of the public notice by first class mail, postage prepaid, to each of the following:  the owner of the land where the project is located, if the applicant is not the owner; the municipality in which the project is located; the municipal and regional planning commissions for any municipality in which the project is located; the municipal and regional planning commission in any adjacent Vermont municipality if the project is located on a boundary; any state agency identified on the project review sheet as directly affected by the project; and all adjoining property owners and residents.  In addition, the applicant shall assure that this notice is published in a newspaper of general circulation in the area of the proposed project.  The applicant shall furnish by affidavit to the secretary the names of those furnished notice.

(c)  Any interested person who wishes to receive all notices relating to a particular project may do so by submitting a written request to the secretary.  The secretary shall provide relevant notices to all persons making a written request.

§ 8506.  SCOPING CONFERENCE AND REPORT

(a)  The applicant or a representative of the applicant and the secretary shall attend the scoping conference, present a description of the proposed project, and be available for questions from the public concerning the proposed project. The following persons should be present at the scoping conference:  the district coordinator, if the proposed project will require a land use permit under chapter 151 of this title, and a representative of a local permitting authority or a member of the legislative body of the municipality in which the project is located, if no local permitting authority exists.  The purpose of the scoping conference is to provide public information about the full project and allow informal discussion of the full project, and to identify and, if possible, resolve potential issues or conflicts at the beginning of the project review process. 

(1)  For those projects that a district coordinator, or the environmental board on review, has determined do not require a land use permit under chapter 151 of this title, the secretary shall convene the scoping conference. 

(2)  For those projects that a district coordinator, or the environmental board on review, has determined do require a land use permit under chapter 151 of this title, the district coordinator shall convene the scoping conference. 

(b)  Following the scoping conference, the secretary, in conjunction with the district coordinator if the project requires a land use permit under chapter 151 of this title, shall prepare and provide to all those persons who requested the conference, as well as those persons and entities provided notice under section 8505 of this title, a scoping report documenting the proceedings.  The report shall include, at a minimum, the following information:

(1)  the name of the project applicant;

(2)  the project identification number;

(3)  the location of the project;

(4)  a brief description of the project;

(5)  identification of all persons known to be in attendance at the scoping conference;

(6)  a summary of the issues raised by attendees of the scoping conference;

(7)  an outline of the processing of the various permits required for the project, and whether that processing shall be conducted by sequential or concurrent review; and

(8)  whether further proceedings should be convened in order to resolve remaining issues that present the reasonable possibility of resolution.

§ 8507.  APPEALS TO THE ENVIRONMENTAL BOARD AND WATER RESOURCES BOARD

(a)  Any person aggrieved by an act or decision of the secretary or of a district commission may appeal that act or decision within 30 days of the date of the act or decision as provided in this section

(1)  Acts or decisions of the secretary under the following authorities, excluding enforcement actions under chapters 201 and 211 of this title and rulemaking, may be appealed to the water resources board:

(A)  10 V.S.A. chapter 37 (water resources management);

(B)  10 V.S.A. chapter 41 (regulation of stream flow);

(C)  10 V.S.A. chapter 43 (dams);

(D)  10 V.S.A. chapter 47 (water pollution control);

(E)  10 V.S.A. chapter 48 (groundwater protection);

(F)  10 V.S.A. chapter 55 (aid to municipalities for water supply, pollution abatement, and sewer separation);

(G)  10 V.S.A. chapter 56 (public water supply);

(H)  10 V.S.A. chapter 64 (potable water supply and wastewater permit); and

(I)  29 V.S.A. chapter 11 (encroachment into lakes or ponds).

(2)  Acts or decisions of the secretary under chapter 159 of this title (waste management), excluding enforcement actions under chapters 201 and 211 of this title and rulemaking, may be appealed to the environmental board.

(3)  Requests for variances or appeals under chapter 23 of this title (air pollution control) and requests for variances under chapter 159 of this title (waste management) may be taken to the environmental board.

(4)  Acts or decisions of a district commission under chapter 151 of this title may be appealed to the environmental board.

(5)  Acts or decisions of the secretary under chapter 59 of this title (underground storage tanks) and chapter 123 (endangered species) may be appealed to the superior court.

(6)  Acts or decisions under chapter 83 of this title (heavy cutting) may be appealed to the environmental court.

(b)  Any person may intervene in a pending appeal if that person meets the standard for intervention under Rule 24 of the Vermont Rules of Civil Procedure.

(c)  The environmental board or the water resources board shall hold a de novo hearing on those issues which have been appealed, and that hearing shall be conducted as a contested case.

(d)  Any appeal of an authorization to discharge under the terms of a general permit shall be limited in scope to whether the permitted activity complies with the terms and conditions of the general permit.  The secretary is prohibited from issuing a general permit by rule.

§ 8508.  APPEALS TO THE SUPREME COURT

(a)  Any person aggrieved by an act or decision of the environmental board or water resources board may appeal to the supreme court within 30 days of the date of entry of the judgment or order appealed, provided that the person was a party to the proceedings before the relevant board.  Notwithstanding this requirement, a person aggrieved may appeal such an act or decision if the supreme court determines that:

(1)  there was a procedural defect which prevented the person from participating in the proceeding; or

(2)  some other condition exists which would result in manifest injustice if the person’s right to appeal was disallowed.

(b)  The supreme court’s review of a decision by the environmental board or water resources board shall be on the record.

(c)  The attorney general may represent the state in all appeals under this section.

Sec. 2.  10 V.S.A. § 6001(30) is added to read:

(30)  “Person aggrieved” means any person who demonstrates an interest which may be affected by the outcome of the proceeding and who is so situated that the disposition of the proceeding may as a practical matter impair or impede the person’s ability to protect that interest.

Sec. 3.  10 V.S.A. § 6084 is amended to read:

§ 6084.  NOTICE

(a)  On or before the date of filing of application the applicant shall send notice and a copy of the application to the owner of the land if the applicant is not the owner; any adjoining property owner; the municipality in which the land is located; the municipal and regional planning commissions for the municipality in which the land is located; any adjacent Vermont municipality and municipal and regional planning commission if the land is located on a boundary.  The applicant shall furnish to the district commission the names of those furnished notice by affidavit, and shall post a copy of the notice in the town clerk's office of the town or towns wherein the land lies.

(b)  The district commission shall forward notice and a copy of the application to the board and any state agency directly affected, the solid waste management district in which the land is located, if the development or subdivision constitutes a facility pursuant to subdivision 6602(10) of this title, and any other municipality, state agency, or person the district commission or board deems appropriate.  In addition, the district commission shall forward notice to any Vermont municipality whose boundary at any point meets the boundary of the municipality where the project is located, and its municipal and regional planning commissions.   Notice shall also be published in a local newspaper generally circulating in the area where the land is located not more than 7 seven days after receipt of the application.

Sec. 4.  10 V.S.A. § 6085 is amended to read:

§ 6085.  HEARINGS; PARTY STATUS

(a)  Anyone required to receive notice by section 6084 of this title and any adjoining property owner may request a hearing by filing a request within 15 days of receipt of notice.  Upon receipt of notice, the district commission shall treat the application as a contested case pursuant to section 814 of Title 3.  The district commission may order a hearing without a request within 20 days of receipt of the application.

(b)  The hearing or a prehearing conference shall be held within 40 days of receipt of the application or notice of appeal.  The parties shall be given not less than 10 days 20 days’ notice.  Notice shall also be published in a local newspaper generally circulating in the area where the land is located not less than 10 days before the hearing date, and shall be provided to all persons receiving notice under section 6084 of this title.

(c)(1)  Parties shall be those who have received notice, adjoining property owners who have requested a hearing, and such other persons as the board may allow by rule.  For the purposes of appeal to the supreme court, only the applicant, the landowner if the applicant is not the landowner, a state agency, the regional and municipal planning commissions and the municipalities required to receive notice shall be considered parties.  An adjoining property owner may participate in hearings and present evidence only to the extent the proposed development or subdivision will have a direct effect on his or her property under section 6086(a)(1) through (a)(10) of this title.  Party status.  In proceedings before the board and district commissions, the following persons shall be entitled to party status:

(A)  The applicant;

(B)  The landowner, if the applicant is not the landowner;

(C)  The municipality in which the project site is located, and the municipal and regional planning commissions for that municipality; and if the project site is located on a boundary, any Vermont municipality adjacent to that border and the municipal and regional planning commissions for that municipality; and the solid waste management district in which the land is located, if the development or subdivision constitutes a facility pursuant to subdivision 6602(10) of this title;

(D)  Any state agency directly affected by the proposed project, and any state agency receiving notice of the proceedings through the interagency Act 250 review committee;

(E)  Any person aggrieved, as defined in subdivision 6001(30) of this title;

(F)  Any person other than those listed in subdivisions (c)(1)(A) – (E) of this section who meets the requirements of Rule 24 of the Vermont Rules of Civil Procedure. 

(2)  Content of petitions.  All persons seeking  to participate in proceedings before the board or district commission as parties pursuant to subdivision (c)(1)(E) or (F) of this section must petition for party status.  Any petition for party status may be made orally or in writing to the district commission and shall be made in writing to the board, unless waived by the chair.  All petitions must include:

(A)  A detailed statement of the petitioner’s interest under the relevant criteria of the proceeding, including, if known, whether the petitioner’s position is in support of or in opposition to the relief sought by the permit applicant, appellant, or petitioner.

(B)  In the case of an organization, a description of the organization

and its purposes.

(C)  A statement of the reasons the petitioner believes the board or district commission should allow the petitioner party status in the pending proceeding.

(D)  In the case of a person seeking party status under subdivision (c)(1)(F) of this section:

(i)  if applicable, a description of the location of the petitioner’s property in relation to the proposed project, including a map, if available;

(ii)  a description of the potential effect of the proposed project upon the petitioner’s interest with respect to each of the relevant criteria or subcriteria under which party status is being requested.

(3)  Timeliness.  A petition for party status pursuant to subdivision (c)(1)(E) or (F) of this section must be made at or prior to an initial prehearing conference held pursuant to board rule or at the commencement of the hearing, whichever shall occur first, unless the board or district commission, within their respective jurisdictions, directs otherwise.  The board or district commission, within their respective jurisdictions,  may grant an untimely petition if it finds that the petitioner has demonstrated good cause for failure to request party status in a timely fashion, and that the late appearance will not unfairly delay the proceedings or place an unfair burden on the parties.

(4)  Conditions.  Where a person has been granted party status pursuant to subdivision (c)(1)(E) or (F) of this section, the board or district commission shall restrict the person’s participation to only those issues in which it has demonstrated an interest, and may encourage the person to join with other persons with respect to representation, presentation of evidence, or other matters in the interest of promoting judicial expediency. 

(5)  Amicus curiae.  The  board or district commission, on its own motion or by petition, may appoint amicus curiae to participate in a proceeding.  Participation may be limited to the filing of memoranda, proposed findings of fact and conclusions of law, and argument on legal issues.  However, if approved by the board or the district commission, participation may be expanded to include the provision of testimony, the filing of evidence, or the cross‑examination of witnesses.  A petition for leave to participate as amicus curiae shall identify the interest of the petitioner and the desired scope of participation and shall state the reasons why the participation of the petitioner will be beneficial to the board or the district commission.  Except where all parties consent or as otherwise ordered by the board or district commissions or their respective chairs, all amicus curiae shall file their memoranda, testimony, or evidence within the times allowed other parties.

(2)(6)  Re-examination of party status.  A district commission, according to the procedures established in the rules of the board, shall determine party status with respect to individuals and organizations at the commencement of the hearing process and shall re‑examine those party status determinations before the close of hearings and state the results of that re‑examination in the district commission decision.  In the re‑examination of party status coming before the close of district commission hearings, persons having attained party status up to that point in the proceedings shall be presumed to retain party status.  However, on motion of a party, or on its own motion, a commission shall consider the extent to which parties continue to qualify for party status.  Determinations made before the close of district commission hearings shall supersede any preliminary determinations of party status.

(d)  Any person aggrieved by an act or decision of the district commission or the board may appeal the act or decision in accordance with chapter 220 of this title.

(d)(e)  If no hearing has been requested or ordered within the prescribed period, no hearing need be held by the district commission.  In such an event a permit shall be granted or denied within 60 days of receipt; otherwise, it shall be deemed approved and a permit shall be issued.

(e)(f)  The board and any district commission, acting through one or more duly authorized representatives at any prehearing conference or at any other times deemed appropriate by the board or by the district commission, shall promote expeditious, informal, and nonadversarial resolution of issues, require the timely exchange of information concerning the application, and encourage participants to settle differences.  No board member or district commissioner who is participating as a decisionmaker in a particular case may act as a duly authorized representative for the purposes of this subsection.  These efforts at dispute resolution shall not affect the burden of proof on issues before a commission or the board, nor shall they affect the requirement that a permit may be issued only after the issuance of affirmative findings under the criteria established in section 6086 of this title.

(f)(g)  A hearing shall not be closed until a commission or the board provides an opportunity to all parties to respond to the last permit or evidence submitted.  Once a hearing has been closed, a commission or the board shall conclude deliberations as soon as is reasonably practicable.  A decision of a commission or the board shall be issued within 20 days of the completion of deliberations.

Sec. 5.  10 V.S.A. § 6086(b) is amended to read:

(b)  At the request of an applicant, or upon its own motion, the district commission or the board shall consider whether to review any criterion or group of criteria of subsection (a) of this section before proceeding to or continuing to review other criteria.  This request or motion may be made at any time prior to or during the proceedings.  The district commission or the board, in its sole discretion, shall, within 20 days of the completion of deliberations on the criteria that are the subject of the request or motion, either issue its findings and decision thereon, or proceed to a consideration of the remaining criteria.  If the district commission or the board first issues a partial decision under this subsection, the applicant or a party may appeal that decision within 30 days under section 6089 of this title, or may appeal it after the final decision on the complete application.  If the applicant or party has not taken a prior appeal of a partial decision under this subsection with respect to particular criteria, then any findings on the complete application, relating to those criteria, may be appealed under section 6089 of this title any appeal of that decision must be taken within 30 days of the date of that decision.

Sec. 6.  CONSOLIDATION OF APPEALS BOARDS

(a)  The waste facility panel established under 10 V.S.A. chapter 151 is hereby eliminated.  All powers, duties, and responsibilities of the waste facility panel are transferred to the full environmental board established under 10 V.S.A. chapter 151. 

(b)  The solid waste and air quality variance board established under 10 V.S.A. chapter 23 is hereby eliminated.  All powers, duties, and responsibilities of the solid waste and air quality variance board are transferred to the full environmental board established under 10 V.S.A. chapter 151.

(c)  Notwithstanding the repeal of their respective enabling authorities, the waste facility panel and the air and solid waste variance board shall continue to exist and have jurisdiction with their preexisting membership to complete their consideration of any action pending before them as of July 1, 2003, except that appeals, petitions, and requests for variances received before July 1, 2003 where the panel or board have not yet initiated proceedings shall be transferred as provided under this act.

Second:  in Sec. 69, 24 V.S.A. § 4303, by striking out in its entirety the subdivision (7) that is being renumbered as (21), and inserting in lieu thereof the following:

(7)(21)  “Public notice” means the form of notice prescribed by section 4447 sections 4444, 4449, or 4464 of this title, as the context requires.

Third:  by striking out Sec. 70 in its entirety and inserting in lieu thereof the following:

Sec. 70.  24 V.S.A. § 4382(a)(10) is amended to read:

(10)  A housing element that shall include a recommended program for addressing low and moderate income persons’ housing needs as identified by the regional planning commission pursuant to section 4348a(a)(9) of this title.  The program may include provisions for conditionally should account for permitted accessory apartments dwelling units, as defined in subdivision 4412(1)(E) of this title, within or attached to single family residences which provide affordable housing in close proximity to cost-effective care and supervision for relatives or disabled or elderly persons.  

Fourth:  In Sec. 76, 24 V.S.A. § 4410, in the last sentence, by striking out the following: “10” and by inserting in lieu thereof the following: 9, 10,

Fifth:  In Sec. 76, 24 V.S.A. § 4411(a), by striking out the first sentence, and inserting the following:

A municipality may regulate land development in conformance with its adopted municipal plan and for the purposes set forth in section 4302 of this title to govern the use of land and the placement, spacing, and size of structures and other factors specified in the bylaws.

Sixth:  In Sec. 76, 24 V.S.A. § 4412(1), by striking out subdivisions (E) through (G) and inserting the following:

(E)  No bylaw shall have the effect of excluding as a permitted use one accessory dwelling unit that is located within an owner‑occupied single‑family dwelling, or within an accessory building appurtenant to that dwelling.  An accessory dwelling unit means an efficiency or one‑bedroom apartment that is clearly subordinate to a single‑family dwelling, and has facilities and provisions for independent living, including sleeping, food preparation, and sanitation, provided the unit complies with all the following:

(i)  Has sufficient wastewater capacity.

(ii)  Does not exceed 30 percent of the total habitable floor area of the single‑family dwelling. 

(iii)  Meets any applicable setback, coverage, and parking requirements specified in the bylaws.                 

(F)  Nothing in subdivision (1)(E) of this section shall be construed to prohibit a bylaw that is less restrictive of accessory dwelling units.

(G)  A residential care home or group home, serving not more than eight individuals who have a handicap or disability as defined in 9 V.S.A. § 4501, that is to be operated under state licensing or registration, shall be considered to constitute a permitted single‑family residential use of property, except that a residential care or group home shall not be so considered if it is located within 1,000 feet of another residential care or group home.

Seventh:  In Sec. 76, 24 V.S.A. § 4412(5), after the following: “Child care.” by inserting the following:

A “family child care home or facility” as used in this subdivision means a home or facility where the owner or operator is to be licensed or registered by the state for child care. 

Eighth:  In Sec. 76, 24 V.S.A. § 4413, by striking out subsection (b) and inserting the following:

(b)  A bylaw under this chapter shall not regulate public utility power generating plants and transmission facilities regulated under 30 V.S.A. § 248.

Ninth:  In Sec. 76, 24 V.S.A. § 4413, by adding new subsections (e) and (f) to read:

(e)  A bylaw enacted under this chapter shall be subject to the restrictions created under 24  V.S.A. § 2295, with respect to the limits on municipal power to regulate hunting, fishing, trapping, and other activities specified under that section.

(f)  This section shall apply in every municipality, notwithstanding any existing bylaw to the contrary.

Tenth:  In Sec. 76, 24 V.S.A. § 4417(a) (Planned unit development), in the first sentence, by striking out the word “shall” and inserting the word should

Eleventh:  In Sec. 81, 24 V.S.A. § 4449(a)(1), by striking out the third, fourth, and fifth sentences in their entirety

Twelfth:  In Sec. 82, 24 V.S.A. § 44531 (challenges to housing provisions in bylaws), by striking out the first two sentences and inserting in lieu thereof the following:

The attorney general or a designee shall investigate when there is a complaint that a bylaw or its manner of administration violates subdivision 4412(1) of this title, relating to equal treatment of housing and adequate provision of affordable housing.  Upon determining that a violation has occurred, the attorney general may file an action in the environmental court to challenge the validity of the bylaw or its manner of administration. 

Thirteenth:  In Sec. 85, 24 V.S.A. § 4464(a)(1)(C), at the end of the subdivision, by adding the following:  The notification shall include a description of the proposed project and shall be accompanied by information that clearly informs the recipient where additional information may be obtained and that participation in the local proceeding is a prerequisite to the right to take any subsequent appeal.  

Fourteenth:  In Sec. 85, 24 V.S.A. § 4464(a)(2)(B), at the end of the subdivision, by adding the following:  The notification shall include a description of the proposed project and shall be accompanied by information that clearly informs the recipient where additional information may be obtained and that participation in the local proceeding is a prerequisite to the right to take any subsequent appeal.  

Fifteenth:  In Sec. 85, 24 V.S.A. § 4464(a)(3), at the end of the subdivision, by adding the following:  The applicant may be required to demonstrate proof of delivery to adjoining landowners either by certified mail, return receipt requested, or by actual notice supported by a sworn certificate of service.

Sixteenth:  In Sec. 85, 24 V.S.A. § 4464(a)(5), in the second sentence, by striking out the word “defect” and inserting in lieu thereof the word defective

Seventeenth:  In Sec. 87, 24 V.S.A. § 4465(b)(4), in the first sentence, by striking out the following:  “or a number of these persons equal to at least one percent of the registered voters of the municipality, whichever is greater,” and in the second sentence, by striking out the words “principal contact” and by inserting in lieu thereof the words representative of the petitioners

Eighteenth:  In Sec. 90, by striking out 24 V.S.A. § 4481 in its entirety and inserting in lieu thereof the following:

§ 4481.  SAVING CLAUSE

The amendment of this chapter and the repeal of prior enabling laws relating to zoning ordinances, subdivision regulations, or bylaws or any ordinance or regulation similar to a bylaw authorized by this chapter shall not invalidate any zoning ordinance, subdivision regulation, or bylaw or any such ordinance or regulation enacted under those prior enabling laws, except as follows.  Effective September 1, 2004, the provisions of sections 4412 and 4413 of this title, and the provisions of subchapters 9, 10 and 11 of this chapter and the related definitions in  section 4302 of this title, shall control over any inconsistent municipal regulations, ordinances or bylaws.  With respect to other provisions of this chapter, any previously enacted zoning ordinance, subdivision regulation, bylaw or such  similar ordinance or regulation shall be amended to conform with the provisions of this chapter by September 1, 2010.

Nineteenth:  In Sec. 92, in the second sentence, by striking out the words “the Regional Planning Commissions and” and by inserting the following before the period at the end of the section: , which includes regional planning commissions, municipal representatives, and education providers

Twentieth:  By adding six new sections to read:

Sec. 93.  10 V.S.A. § 6086(c) and (d) are amended to read:

(c)  A permit may contain such requirements and conditions as are allowable proper exercise of the police power and which are appropriate within the respect to (1) through (10) of subsection (a), including but not limited to those set forth in sections 4407(4) 4414(4), (8) and (9) 4424(2), 4411(a)(2) 4414(1)(D)(i), 4415, 4416 4463(b),  and 4417 4464 of Title 24, the dedication of lands for public use, and the filing of bonds to insure compliance.  The requirements and conditions incorporated from Title 24 may be applied whether or not a local plan has been adopted.  General requirements and conditions may be established by rule.

(d)  The board may by rule allow the acceptance of a permit or permits or approval of any state agency with respect to (1) through (5) of subsection (a) or a permit or permits of a specified municipal government with respect to (1) through (7) and (9) and (10) of subsection (a), or a combination of such permits or approvals, in lieu of evidence by the applicant.  The board shall accept determinations issued by a development review board under the provisions of 24 V.S.A. § 4449 4420, with respect to local Act 250 review of municipal impacts.  The acceptance of such approval, positive determinations, permit, or permits shall create a presumption that the application is not detrimental to the public health and welfare with respect to the specific requirement for which it is accepted.  In the case of approvals and permits issued by the agency of natural resources, technical determinations of the agency shall be accorded substantial deference by the commissions and the board.  The acceptance of negative determinations issued by a development review board under the provisions of 24 V.S.A. § 4449 4420, with respect to local Act 250 review of municipal impacts shall create a presumption that the application is detrimental to the public health and welfare with respect to the specific requirement for which it is accepted.  Any determinations, positive or negative, under the provisions of 24 V.S.A. § 4449 4420 shall create presumptions only to the extent that the impacts under the criteria are limited to the municipality issuing the decision.  Such a rule may be revoked or amended pursuant to the procedures set forth in 3 V.S.A., chapter 25, the Vermont Administrative Procedure Act.  The board shall not approve the acceptance of a permit or approval of such an agency or a permit of a municipal government unless it satisfies the appropriate requirements of subsection (a) of this section.

Sec. 94.  24 V.S.A. § 1201 is amended to read:

§ 1201.  DEFINITIONS

As used in this chapter:

(1)  "Contested hearing" means one of the following:

(A)  A case in which an applicant for a land use permit under 10 V.S.A. chapter 151 is required to obtain local Act 250 review of municipal impacts by a municipality that has taken steps required under section 4449 4420 of this title to allow it to conduct that local review.

* * *

(4)  "Party," for purposes of proceedings under chapter 117 of this title, other than those related to local Act 250 review of municipal impacts, means "interested person," as defined by subsection 4464(b) 4465(b) of this title. "Party," for purposes of local Act 250 review of municipal impacts, means a person whose interests, under relevant provisions of 10 V.S.A. § 6086(a) being reviewed at the municipal level, may be affected by a proposed development or subdivision, as those terms are defined in 10 V.S.A. chapter 151. "Party" for purposes of other proceedings under this chapter, shall have the meaning established under statutes controlling those proceedings.

Sec. 95.  24 V.S.A. § 2791(2) and (6) are amended to read:

(2)  "Design control review district" means a district created pursuant to subdivision 4407(6) 4414(1)(E) of this title.

(6)  "Historic district" means a district created pursuant to subdivision 4407(15) 4414(1)(F) of this title.

Sec. 96.  24 V.S.A. § 2793(b) is amended to read:

(b)  Within 45 days of receipt of a completed application, the state board shall designate a downtown development district if the state board finds, in its written decision, that the municipality has:

(1)  demonstrated a planning commitment through the adoption of a design control review district, an historic district, or through the creation of a development review board authorized to undertake local Act 250 reviews pursuant to section 4449 4420 of this title;

* * *

Sec. 97.  24 V.S.A. § 2793b(b) is amended to read:

(b)  Within 45 days of receipt of a completed application, the state board shall designate a new town center development district if the state board finds, with respect to that district, the municipality has:

(1)  a confirmed planning process under section 4350 of this title, and developed a municipal center plan and regulations to implement the plan, including an official map, and a design control review district created under this title; and

* * *

Sec. 98.   EFFECTIVE DATE

This act shall take effect on July 1, 2003, except as otherwise specifically provided in 24 V.S.A. § 4481.

(Committee Vote: 7-0-0)

(For House amendments, see House Journal for April 10, page 511; April 11, 2003, April 594.)

H. 480

An act relating to education funding.

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

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

* * * Part I.  EDUCATION TAXATION AND COLLECTION * * *

* * * Town school districts * * *

Sec. 1.  16 V.S.A. § 428 is amended to read:

§ 428.  AMOUNT OF MONEY BUDGET TO BE VOTED AND COLLECTED

(a)  At each annual town school district meeting, the electorate shall vote such sums of money as it deems necessary for the support of schools.  If such sums are not approved or acted upon at the annual meeting, the electorate shall vote such questions at a duly warned special school district meeting.  A district may vote money necessary for the support of schools therein to the end of the full school year next ensuing.

(b)  Following Within 10 days of adoption of a budget by the electorate and calculation of the yield amount pursuant to section 4027 of this title, if the district has voted a budget with local education spending in excess of the general state support grant amount, the commissioner of education shall determine the district’s local share property tax percentage.  The selectboard shall then bill each property taxpayer for the local share property tax amount, and may use tax classifications if authorized.  Homesteads shall be billed without regard to the income sensitivity calculation under chapter 154 of Title 32, the superintendent shall report to the commissioner of education the budget amount voted.

(c)  Local share property tax amount is the education property tax liability due under section 5402 of Title 32, times the local share property tax percentage, minus any amount of education property tax assessed for that year on an electric generating plant subject to tax under chapter 213 of Title 32.  Local share property tax percentage means the percentage of the liability under chapter 135 of Title 32 necessary to raise per equalized pupil local education spending in excess of general state support amount, divided by the yield amount.  Local education spending shall have the same meaning that it has in subdivision 4001(6) of this title.

(d)  The treasurer of each school district which has voted a budget with local education spending in excess of the general state support grant and which can raise more than the yield amount shall, on December 1 in the year in which the tax is levied and on June 1 of the following year, pay to the state treasurer for deposit into the education fund one-half of the municipality’s education property tax liability net payment, as determined by the commissioner of education.  Payment shall be accompanied by a return prescribed by the state treasurer in consultation with the commissioner of education.  Any portion of local share property tax liability due to the treasurer and paid before the due date shall be discounted on a per diem basis at an annual rate of six percent.  A district which has not voted a budget and for which the commissioner has used the most recently adopted budget in calculating the yield amount under section 4027 of this title, shall be subject to this subsection, based on its most recently adopted budget and shall borrow the funds necessary to make payments to the state treasurer.

(e)  The payment provisions of section 5403 of Title 32, and the administrative provisions of section 5409 of Title 32 shall apply to the local share property tax.  Taxes assessed and collected by a municipality shall be assessed and collected in accordance with chapter 133 of Title 32.

(f)(c)  If the electorate of a school district votes for its budget by Australian ballot, it shall do so using ballot language jointly developed by the commissioner and secretary of state and adopted by the commissioner, by rule.

* * * Incorporated school districts * * *

Sec. 2.  16 V.S.A. § 511 is amended to read:

§ 511.  BUDGET

(a)  At a meeting legally warned for that purpose, an incorporated school shall vote such sums of money as it deems necessary for the support of schools.  If such sums are not approved or acted upon at the annual meeting, the electorate shall vote such questions at a duly warned special school district meeting.  A district may vote money necessary for the support of schools therein to the end of the full school year next ensuing.

(b)  Following Within 10 days of adoption of a budget by the electorate and calculation of the yield amount pursuant to section 4027 of this title, if the incorporated district has voted a budget with local education spending in excess of the general state support grant amount, the commissioner of education shall determine the district’s local share property tax percentage.  The prudential committee shall then bill each property taxpayer for the local share property tax amount, and may use tax classifications if authorized.  Homesteads shall be billed without regard to the income sensitivity calculation under chapter 154 of Title 32, the superintendent shall report to the commissioner of education the budget amount voted.  The prudential committee shall have the same authority to enforce collection and payment of this tax, including the collection of interest on overdue taxes, as selectmen have in enforcing collection and payment of town taxes.

(c)  Local share property tax amount is the education property tax liability due under section 5402 of Title 32, times the local share property tax percentage, minus any amount of education property tax assessed for that year on an electric generating plant subject to tax under chapter 213 of Title 32.  Local share property tax percentage means the percentage of the liability under chapter 135 of Title 32 necessary to raise per equalized pupil local education spending in excess of general state support amount, divided by the yield amount.  Local education spending shall have the same meaning that it has in subdivision 4001(6) of this title.

(d)  The treasurer of an incorporated district which has voted a budget with local education spending in excess of the general state support grant and which can raise more than the yield amount shall, on December 1 in the year in which the tax is levied and on June 1 of the following year, pay to the state treasurer for deposit into the education fund one-half of the municipality’s education property tax liability net payment, as determined by the commissioner of education.  Payment shall be accompanied by a return prescribed by the state treasurer in consultation with the commissioner of education.  Any portion of local share property tax liability due to the treasurer and paid before the due date shall be discounted on a per diem basis at an annual rate of six percent.  An incorporated district which has not voted a budget and for which the commissioner has used the most recently adopted budget in calculating the yield amount under section 4027 of this title, shall be subject to this subsection, based on its most recently adopted budget and shall borrow the funds necessary to make payments to the state treasurer.

(e)  The payment provisions of section 5403 of Title 32, and the administrative provisions of section 5409 of Title 32 shall apply to the local share property tax.  Taxes assessed and collected by a municipality shall be assessed and collected in accordance with chapter 133 of Title 32.

(f)(c)  If the electorate of an incorporated school district votes for its budget by Australian ballot, it shall do so using ballot language jointly developed by the commissioner and secretary of state and adopted by the commissioner, by rule.

* * * Statewide Education Tax * * *

Sec. 3.  32 V.S.A. § 5401(7) is amended to read:

(7)  “Homestead” means the principal dwelling owned and occupied by a resident individual, as defined in section 5811 of this title, in which the individual claims residence for purposes of income tax liability and rights and privileges of residency.  A homestead also includes a dwelling owned by a farmer as defined under section 3752 of this title, and occupied as the permanent residence by a parent, sibling, child, grandchild or shareholder of the farmer-owner, provided that the shareholder owns more than 50 percent of a corporate farmer-owner, including attribution of stock ownership of a parent, sibling, child or grandchild.  A homestead includes as much of the parcel of land surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, up to a maximum of 10 acres per parcel, determined without regard to any road which intersects the land.  If two or more homestead dwellings are located on a single parcel, the value of the parcel allocated to each homestead shall be the total value of the parcel divided by the number of principal dwellings, unless otherwise determined by ownership of record of the land.  A homestead may consist of a part of a multi-dwelling or multi-purpose building, including cooperative property occupied as a permanent residence by a member of a cooperative housing corporation incorporated under 11 V.S.A. chapter 14, and a pro rata part of the land upon which it is built.  A mobile home may constitute a principal dwelling for purposes of this chapter.  A homestead does not include buildings or improvements detached from the home except for a building used as a garage for personal passenger vehicles and any sheds used for noncommercial purposes.  A homestead and used for business purposes; and does not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the building.

Sec. 3a. 32  V.S.A. §5401 (12) and (13) are added to read:

               (12)  “District spending adjustment” means a fraction in which the numerator is the district’s education spending plus excess spending, per equalized pupil, for the school year; and the denominator is the base education payment for the school year, as defined in 16 V.S.A. § 4001.

               (13)  “Excess spending” means the equalized per pupil amount of the district’s education spending minus the portion of education spending which is approved school capital construction spending; in excess of the statewide average district education spending per equalized pupil in the prior fiscal year, as determined by the commissioner.

Sec. 4.  32 V.S.A. § 5402 is amended to read:

§ 5402.  STATEWIDE EDUCATION PROPERTY TAX LIABILITY

(a)  A statewide education property tax is imposed on all nonresidential and homestead property at a rate of $1.10 at the following rates:

(1)  the tax rate for nonresidential property shall be $1.60 per $100.00, and

(2)  the tax rate for homestead property shall be $1.17 multiplied by the district spending adjustment for the municipality, but in no event less than $1.10, per $100.00,

of equalized education property value as most recently determined under section 5405 of this title; but the homestead property tax liability shall not exceed the adjusted liability for eligible claimants under chapter 154 of this title.

 (b)  Calculation of education tax.

(1)  The commissioner of taxes shall determine the education property tax liability for to be collected by each municipality for the following school year by multiplying the tax rate adopted rates under subsection (a) of this section by the municipality’s most recent equalized education tax grand list for the previous year nonresidential and homestead values.  On or before June 30 each year, the commissioner of taxes shall inform each municipality of its the education property tax liability to be collected

     (2)  If a district has not voted a budget by May 1, the commissioner shall determine a preliminary amount of nonresidential and homestead education taxes to be collected by the municipality, by multiplying the minimum tax rates under subsection (a) of this section by the municipality’s most recent equalized nonresidential and homestead values, and shall inform the municipality by June 30 of the preliminary amount to be collected.  Upon receipt of the municipality’s budget information from the commissioner of education, the commissioner shall determine, and inform the municipality of, the full amount of nonresidential and homestead education taxes to be collected by the municipality under subdivision (b)(1) of this section.

(3)  The legislative body in each municipality shall then bill each property taxpayer for the nonresidential and homestead amounts of education property tax on the education property tax grand list, and the legislative body may use tax classifications, if authorized, to raise that amount the amounts determined under this sectionEach homestead property tax bill shall include notice of the education spending per equalized pupil in the taxpayer’s district and its relation to the base education payment; and the effect of the education spending in the district upon the homestead tax rate and the applicable percentage for income sensitivity; and shall also include an insert supplied by the commissioner of taxes which explains the relationship of district education spending to homestead property tax rates. Tax bills shall show the tax due as the rate determined under subsection (a) of this section, multiplied by the current listed value of the property to be taxed, multiplied by a factor which accounts for grand list equalization.  The grand list equalization factor shall be the ratio of the municipality’s most recent equalized education grand list value divided by its current year education grand list value.

(4)  Taxes assessed under this section shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title.  Taxes assessed on homesteads shall be assessed without regard to the adjustment for eligible claimants under chapter 154 of this title. 

(c)  Notwithstanding section 426 of Title 16, the 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 statewide nonresidential tax and one‑half of the municipality’s homestead education property tax liability net payment, as determined by the commissioner of taxes, as determined under subsection (b)(1) of this sectionPayment The commissioner of education shall determine the municipality’s net nonresidential education tax payment, and its net homestead education tax payment to the state, and 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 one‑eighth of one percent of the net payment amount to the state, as determined by the director of property valuation and review.  Notwithstanding sections 182 and 461 of this title, any remaining balance shall be paid to the school district total education tax collected, only upon timely remittance of the December 1 net payment to the state treasurer

     (d)  Annually, by December 1, the commissioner of taxes, after consultation with the secretary of administration, the department of education and the joint fiscal office, shall determine if there is a projected surplus in the education fund budget stabilization reserve in excess of the five percent level authorized under section 4026 of this title.  If there is a projected surplus in excess of  that level, the commissioner of taxes shall recommend, for the following fiscal year only, a reduction in the rates of  the statewide education tax rates which will retain the education fund stabilization reserve at the five per cent level and  determine a proportional adjustment to the applicable percentage base for homestead income-based adjustments under section 6066 of this title.  The proportional adjustment shall reflect the ratio for rate increases in statewide education tax rates under subsection (e) of this section. The commissioner shall report the recommended reduction in rates to the secretary of administration and to the general assembly, and shall include the data and the calculation used to determine the proposed reduction under this subsection.

     (e)  Annually, by December 1, the commissioner of education shall determine the growth in the average statewide homestead property tax rate under subsection (a) (2) of this section from the prior school year.   The rate of the statewide education tax on nonresidential property under subsection (a)(1) of this section shall be increased in the following school year by one half of the amount of the growth in the average rate of the statewide homestead property tax, rounded to the nearest cent, as determined by the commissioner under this section.

     (f)  An owner of a building containing qualified rental units shall be entitled to a percentage reduction in the education property tax due under this section.  The reduction percentage shall be 10 percent, multiplied by the ratio of qualified rental units to total rental units in the building.

          (i)  “Qualified rental units” under this subsection means units which are at the time of the claim under this subsection, and were for the entire preceding calendar year, subject to rent restriction under provisions of state or federal law.

          (ii)  A municipality shall allow a percentage reduction under this subsection upon presentation by the taxpayer to the municipality of a certificate of education tax reduction, obtained from the commissioner of taxes.  The commissioner of taxes shall issue a certificate of education tax reduction upon presentation by the taxpayer of information which the commissioner shall require.

          (iii)  A percentage reduction granted by a municipality under this subsection shall not affect the amount of statewide education property tax to be collected by the municipality, and the municipality shall be deemed to have paid to the state treasurer the amount of tax reduced in accord with this subsection.

Sec. 4a.  Subsection (2) of Sec. 50a of No. 60 of the Acts of 1997, as amended, is amended to read:

(2)  A municipality which has upon its grand list an operating electric generating plant subject to the tax under section 5402a of Title 32, shall be subject to the education property tax under chapter 135 of Title 32 at one‑half the rate provided in section subsection 5402(a)(1) and one-half the base rate provided in subsection 5402(a)(2) of Title 32; and

Sec. 5.  32 V.S.A. § 5410 is amended to read:

§ 5410.  DECLARATION OF HOMESTEAD

(a)  A resident may shall declare one ownership of a homestead for purposes of this chapter education property tax.

(b)  Annually on or before the due date for filing the Vermont income tax return, with without extension, each resident individual may shall, on a form prescribed by the commissioner, which shall be verified under the pains and penalties of perjury, declare his or her homestead, if any, as of, or expected to be as of, April 1 of the year in which the declaration is made.

(c)  [Repealed.]

(d)  The commissioner shall provide a list of homesteads in each town to the town listers by May 15.  The listers shall notify the commissioner by June 1 of any residences on the commissioner’s list which do not qualify as homesteads.  The listers shall separately identify homesteads in the grand list.

(e)  The commissioner shall adopt rules governing late filing of a homestead declaration and the eligibility requirements for declaring a homestead.

(e)(f)  Intention to establish a permanent residence is a factual determination to be made in the first instance by the commissioner.  No one factor is conclusive of whether a dwelling is a permanent residence; the commissioner may consider any relevant factors, including but not limited to the following: formal and informal statements of the declarant; the location of residences owned or leased by the declarant; where the declarant spends time; the declarant’s place of employment and business connections; the location of items of significant value (either monetary or sentimental) to declarant; where the declarant’s family lives, place of voter registration, place of issuance of automobile registration and driver’s license; previous permanent residency of the declarant; and address listed on federal and state income tax returns filed by the declarant.

(f)(g)  If the property identified in a declaration under subsection (b) of this section is not the taxpayer’s homestead, or if the owner of a homestead fails to declare a homestead as required under this section, the commissioner shall assess the taxpayer a penalty in an amount equal to eight percent of the education tax assessed on the property, ; or if the declaration was filed or failure to declare was with fraudulent intent, then the commissioner shall assess the taxpayer a penalty in an amount equal to 100 percent of the education tax assessed on the property plus interest from the original due date of the property tax on the property, at the applicable rate established in section 3108 of this title.  Any penalty imposed under this subsection may be recovered by assessment and enforcement and with appeal rights in the same manner as an income tax under chapter 151 of this title.  Amounts collected under this subsection shall be credited to the education fund.  The commissioner may waive or reduce the eight percent penalty under this subsection for good cause.  Education taxes assessed in the fiscal year upon property identified in a declaration of homestead, but which was not the taxpayer’s homestead, shall remain payable to the commissioner.  Upon the filing of a new or corrected declaration by an owner subject to this subsection, any additional tax shall be assessed by the municipality and remitted to the state treasurer upon collection; any reduction in tax shall be refunded from the education fund; and any change in property tax shall have no retroactive effect upon the education tax rates for the municipality.

* * * PART II.  HOUSESITE TAX ADJUSTMENT* * *

Sec. 6.  32 V.S.A. § 6061(3) and (7) are amended and (11) is added to read:

(3)  “Household” means, for any individual and for any taxable year, the individual and such other persons as resided with the individual in the homestead at any time during the taxable year.  A person who is not related to any member of the household and who is residing in the household under a written home-sharing agreement pursuant to a nonprofit home-sharing program or a person residing in a household who is hired as a bona fide employee to provide personal care to a member of the household and who is not related to the person for whom the care is provided shall not be considered to be a member of the household.

(7)  “Rent constituting property taxes” means for any homestead and for any taxable year, at the claimant’s option, (A) 21 percent of the gross rent or (B) that portion of the gross rent which equals the property tax assessed for payment in the calendar year allocable to the claimant’s rental unit for the period rented by the claimant. “Gross rent” means the rent actually paid during the taxable year by the individual or other members of the household solely for the right of occupancy of the homestead during the taxable year.  If a claimant’s rent is government-subsidized, the property tax allocable to the claimant’s rental unit shall be reduced in the same proportion as the rent is reduced by the subsidy.  “Rent constituting property taxes” shall not include payments made under a written home-sharing agreement pursuant to a nonprofit home-sharing program, or payments for a room in a nursing home in any month for which Medicaid payments have been made on behalf of the claimant to the nursing home for room charges.

(11)  “Housesite” means that portion of a homestead, as defined under section 5401(7) of this title, which includes the principal dwelling and as much of the land surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, up to a maximum of 10 acres per parcel.

Sec. 7.  32 V.S.A. § 6061(5)(C) is amended to read:

(5)  “Modified adjusted gross income” means the sum of “adjusted gross income” as defined in section 5811 of this title:

* * *

(C)  without the inclusion of gifts from nongovernmental sources, surplus food or other relief in kind supplied by a governmental agency, or the first $4,000.00 $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code, or the first $4,000.00 $6,500.00 of income received by a parent who qualifies as a dependent of the claimant under the Internal Revenue Code, or payments made by the state for foster care or to a family for the support of an eligible person with a developmental disability as defined in subdivision 8722(2) of Title 18.  If the commissioner determines, upon application by the claimant, that a person resides with a claimant who is disabled or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services (as defined in section 6321 of Title 33) or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the commissioner shall exclude that person’s modified adjusted gross income from the claimant’s household income.  The commissioner may require that a certificate in a form satisfactory to the commissioner be submitted which supports the claim.

Sec. 8.  32 V.S.A. § 6061(6) is amended and (12) is added to read:

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

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

(12)  “Claim year” means the year in which a claim is filed under this chapter.

Sec. 9.  32 V.S.A. § 6066(a) and (b) are amended to read:

§ 6066.  COMPUTATION OF ADJUSTMENT

(a)  An eligible claimant who owned the homestead on April 1 of the year in which the claim is filed shall be entitled to an adjustment amount equal to the amount determined under subdivision (1) of this subsection plus the amount in subdivision (2), determined as follows:

(1)  Statewide property tax adjustment:

(A)  For a claimant with household income of $75,000.00 or more:

(i)  the statewide property education tax rate as adjusted under section subdivision 5402(a)(2) of this title, multiplied by the equalized value of the homestead in the taxable year housesite ;

(ii)  minus (if less) the sum of

(I)  two percent the applicable percentage of household income for the taxable year, plus

(II)  the statewide property education tax rate as adjusted under section subdivision 5402(a)(2) of this title, multiplied by the equalized value of the homestead housesite in the taxable year in excess of $160,000.00.

(B)  For a claimant with household income of less than $75,000.00 but more than $47,000.00:

(i)  the statewide property education tax rate as adjusted under subdivision (a)(2) of section 5402 this title, multiplied by the equalized value of the homestead in the taxable year;  housesite

(ii)  minus the lesser of:

(I)  two percent the applicable percentage of household income for the taxable year; or

(II)  the statewide property tax rate under section 5402 of this title, multiplied by the equalized value of the homestead in the taxable year reduced by $15,000.00.

(C)  For a claimant whose household income does not exceed $47,000.00 the statewide education tax rate as adjusted under subdivision (a)(2) of section 5402 of this title, multiplied by the equalized value of the housesite minus the lesser of:

(I) the applicable percentage of household income for the taxable year; or

(II)  the statewide education tax rate under subdivision (a)(2) of section 5402 of this title, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.

(2)  Local share property tax adjustment.  The adjustment amount determined under subdivision (1) of this subsection shall be increased by:  the local share percentage rate established under Title 16 for the claim year for the municipality in which the homestead is located, multiplied by the adjustment amount determined under subdivision (1).  “Applicable percentage” in this section means two and one-tenth percent, multiplied by the district spending adjustment under subdivision 5401(12) of this title for the property tax year which begins in the claim year for the municipality in which the homestead residence is located; but in no event shall the applicable percentage be less than two percent.

(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 housesite owned on December 31 of the taxable year, reduced by the adjustment amount determined under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant’s household income for the taxable year as follows:

* * *

 (b)  An eligible claimant who rented the homestead on the last day of the taxable year, whose household income does not exceed $47,000.00, and who submits a certificate of rent constituting property taxes shall be entitled to a credit against the claimant’s tax liability under chapter 151 of this title equal to the amount by which the rent constituting property taxes upon the claimant’s homestead housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:

* * *

Sec. 9a.  AMENDMENT OF RELATED INCOME SENSITIVITY PROVISIONS

     The legislative council shall replace the word “homestead” with the word “housesite” where the context requires in chapter 154 of Title 32.

Sec. 10.  AMENDMENT OF RELATED INCOME SENSITIVITY PROVISIONS

(a)  The base line amount for determining an education tax rate under subdivision (3) of Sec. 50a of No. 60 of the Acts of 1997, as amended, shall be for fiscal year 2005 and thereafter the greater of $7,602 per equalized pupil or the base education payment as defined in 16 V.S.A. § 4001 (14) for the fiscal year.

(b)  For purposes of a claim for property tax adjustment under chapter 154 of Title 32 by a taxpayer in a municipality which has upon its grand list an operating electric generating plant subject to the tax under section 5402a, the adjusted property tax rate shall be the municipality’s total education property tax rate imposed under subdivisions (2) and (3) of Sec. 50a of No. 60 of the Acts of 1997, as amended; and the applicable percentage factor shall be:  one plus a fraction, the numerator of which is the tax rate imposed under Sec. 50a(3), and the denominator of which is the tax rate imposed by the municipality under Sec. 50a(2).

* * * PART III.  EDUCATION PAYMENTS AND SPENDING * * *

* * * Base and Adjusted Education Payment Amounts * * *

Sec. 11.  16 V.S.A. § 4001(6) is amended and (13) and (14) are added to read:

(6)  “Local education Education spending” means the amount of the school district budget, any assessment for a union school or joint contract school, technical center payments, and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b) which is paid for by the school district from the general state support grant and from local share property tax revenues.  Local education spending does not include, but excluding any portion of the school budget paid for by from any other sources such as endowments, parental fund raising, federal funds, nongovernmental grants or other state funds such as special education funds paid under chapter 101 of this title.

(13)  “Base education payment” means $7,000.00 per equalized pupil, adjusted as required under section 4011 of this title.

(14)  “Adjusted education payment” means the district’s education spending per equalized pupil.

Sec. 12.  16 V.S.A. § 4011 is amended to read:

§ 4011.  GENERAL STATE SUPPORT GRANTS EDUCATION PAYMENTS

     (a)  Annually, the general assembly shall appropriate funds to pay for a general state support grant an adjusted education payment for each equalized pupil and a portion of a general state support grant base education payment for each adult diploma student.  In fiscal year 2002, the general state support grant for each equalized pupil shall be $5,448.00. 

(b)  For each following fiscal year, the general state support grant base education payment shall be $7,000.00, increased by the most recent New England Economic Project cumulative price index, as of December 1 November 15, for state and local government purchases of goods and services from fiscal year 2002 2005 through the following fiscal year, as provided through the state’s participation in the New England Economic Project for which the payment is being determined.

(b)(c)  Annually, each school district shall receive a general state support grant an adjusted education payment for support of basic education costs.  Funds distributed under this section shall be allocated on the basis of the equalized pupils in each school district, except for unorganized towns and gores.  An unorganized town or gore shall receive an amount equal to its adjusted education payment for that year for each student based on the weighted average daily membership count which shall not be equalized.   However, no school district shall receive more than its local education spending amount.  In fiscal years 2005 and 2006,  if the district’s adjusted education payment is less than the base education payment, the district shall receive its education spending per equalized pupil plus 40 percent of the excess of the base education payment over the district’s adjusted education payment, but only for deposit in a district’s education reserve fund, authorized in accord with section 2804 of Title 24, for expenditure on legitimate items of education expenseIn fiscal years 2007 and thereafter, no school district shall receive more than its local education spending amount

 (d)  Funds received under this section which are attributable to an increase in student count due to the poverty ratio of the district shall be used by the district to provide learning readiness experiences for preschool age children or early reading and math experiences for school age children.  These services shall be provided to children who are at risk of not succeeding in the general education environment.  School districts are authorized to work collaboratively to share resources or otherwise find ways to maximize use of funds received under this section.  However, due to the difficulty of determining how much of these funds to attribute to an individual student, this subsection shall not apply to tuition funds received by a receiving school.

(e)  The commissioner shall pay an amount equal to the general state support grant, 82 percent of the base education payment to the Vermont Academy of Science and Technology for each Vermont resident, 12th grade student enrolled.

(f)  Annually, the commissioner shall pay to a department or agency which provides an adult diploma program, an amount equal to 0.3 times the general state support grant, 25 percent of the base education payment for each student who completed the diagnostic portion of the program in the previous year, based on an average of the previous two years.

(g)  On or before December 15, the commissioner shall recommend to the general assembly an appropriate level of general state support grants to school districts for the next ensuing school year.  The commissioner shall pay to a school district a percentage of the base education payment for each resident student for whom the district is paying a technical tuition to a regional technical center but who is not enrolled in the district and therefore not counted in the average daily membership of the district.  The percentage of the base education payment to be paid shall be the percentage of the student’s full-time equivalent attendance at technical center multiplied by 82 percent.

(h)  Annually, by September 1 the commissioner shall calculate the statewide average district spending per equalized pupil for the current fiscal year, and 125 percent of that average spending, and shall publish those amounts on the department website and notify school districts of the amounts.

Sec. 12a.  16 V.S.A. § 4031 is added to read:

§ 4031.  UNORGANIZED TOWNS AND GORES

     (a)  For an unorganized town or gore, if education spending per pupil is in excess of the base education payment there shall be imposed on its education property tax grand list the tax rate necessary to raise the excess amount.

     (b)  A tax imposed under this section shall be administered and collected in the same manner as an education property tax in accord with the provisions of Chapter 135 of Title 32.  For purposes of a claim for property tax adjustment under chapter 154 of Title 32 by a taxpayer in a municipality affected under this section, the applicable percentage shall not be multiplied by a district spending adjustment, but shall be multiplied by a fraction, the numerator of which is the unorganized town’s or gore’s education spending per pupil and the denominator of which is the base education payment.

* * * Technical Centers  * * *

Sec. 13.  16  V.S.A. § 1561(b) and (c) are amended to read:

(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, 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 40 percent of the per equalized pupil general state support grant 33 percent of the base education payment for that year.

Sec. 13a.  16  V.S.A. §1552(c) is amended to read:

(c) For students from a school district within Vermont, funds received under subsections 1561(b) and  subsection 1561 (c) of this title shall be subtracted when calculating the tuition charge. For students who are not Vermont residents, funds received under subsections 1561(b) and  subsection 1561 (c) of this title shall not be subtracted when calculating the tuition charge.

* * * Fund Payments * * *

Sec. 14.  16 V.S.A. § 4027 is amended to read:

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

(a)  On September 15 of each year, the commissioner of education shall determine a predictable yield for the following fiscal year, based upon the allocation, if any, to the yield pool by the General Assembly for the following fiscal year, and upon projected local education spending and projected local share income sensitivity costs for the following fiscal year.  The commissioner shall calculate the predictable yield so that the estimated amount due into the yield pool, plus the amount allocated to the yield pool by the General Assembly, equals the estimated amount due out of the yield pool.  By October 1, the commissioner shall report to the General Assembly the data and the calculation used to determine the predictable yield under this subsection.

(b)  Annually, on or before June 30, the commissioner of education shall use the predictable yield amount established in subsection (a) of this section to determine:

(1)  the local share property tax percentage a school district which adopts a budget with local education spending in excess of the general state support grant shall collect on properties in the district; and

(2)  how much the district shall pay into or receive from the education fund.

(c)  [Deleted.]

(d)(a)  On or before June 30, the commissioner of education shall inform each school district which, 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 of the net amount of its nonresidential education tax and its homestead education tax under section 5402 of Title 32, and its adjusted education payment receipts under section 4011 of this title.  If a petition for reconsideration has been filed, or the district municipality 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 municipality of the net amount of its nonresidential education tax and its homestead education tax, and its adjusted education payment receipts, within 10 days of receiving a report from the superintendent pursuant to subsection (e) of this sectionThe commissioner shall notify the commissioner of taxes of the information reported to municipalities under this subsection.

(e)(b)  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 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. 15.  16 V.S.A. § 4028 is amended to read:

§ 4028.  FUND PAYMENTS TO SCHOOL DISTRICTS

(a)  On or before September 10, December 10, and April 30 of each school year, each school district shall receive funds equal to one-third of the adjusted education payment under section 4011 of this title shall become due to school districts.

(1)  the general state support grants due under section 4011 of this title;

(2)  the amount due to a district which adopts a budget with local education spending in excess of the general state support grant and which is able to raise less than the yield amount.

(b)  Payments made for special education under chapter 101 of this title, for technical education under chapter 37 of this title and for other aid and categorical grants paid for support of education shall also be from the education fund.

(c)  The commissioner of education shall determine a school district’s net payment amount due the fund, which is the amount due under subsection 5402(b) of Title 32 in excess of the payments due the district under subdivision (a)(1) of this section and the net payment due the state under section 4027 of this title.  If a school district fails to deposit the net amount due under section 5402 of Title 32, or fails to deposit the amount due under section 4027 of this title, on or before the due date therefor, then in addition to any other penalties prescribed by law, payments to be made under this section shall be reduced by a percentage equal to the unpaid portion of the amount due.  However, in no case shall payments to the school district equal more than 80 percent of the payments due the school district under this section until the municipality has paid in full.

Sec. 16.  [Deleted]

Sec. 17.  32 V.S.A. § 5409 is amended to read:

§ 5409.  DUTIES OF MUNICIPALITIES AND ADMINISTRATION

The following shall apply with regard to the statewide education tax imposed under this chapter and to the local share tax imposed under section 428 or 511 of Title 16:

(1)  Late payments of the tax by a municipality to the state shall be assessed interest at a per diem rate of eight percent per annum of the amount due.  If a payment is more than 90 days overdue, any state funds due the municipality shall be withheld.

(2)  If  by August 1 a municipality has failed to issue notices of assessment of the statewide property or local share property tax education tax; or if the municipality fails for more than 90 days after the due date for any installment payment of either tax to enforce the tax in the municipality; then the commissioner of taxes shall either issue notices of assessment or collect the tax or both, or bring appropriate court action to require the municipal officials to issue notices and collect the tax, as the commissioner deems necessary.

(3)  In any case of administration under subdivision (2) of this section by the commissioner of taxes of local share property tax:

(A)  Sections 5868, 5869, 5873, 5875, 5881, 5882, 5883, 5884, 5885, 5886, 5887, 5891, 5892, 5893, 5894 and 5895 of Title 32, as amended, shall apply in the same manner as to income tax.

(B)  Persons aggrieved by decisions of the listers may appeal in the manner provided for property tax appeals in chapter 131 of Title 32; and the commissioner of taxes shall have all the powers described in chapter 133 of Title 32.

(C)  The commissioner may abate in whole or in part the statewide or local share property education taxes of a taxpayer who has been granted an abatement of municipal taxes under section 1535 of Title 24.

(4)  [Deleted.]

(5)  In case of insufficient property tax payment by a taxpayer to a municipality, payments shall be allocated first to municipal property tax, and next to local share property tax, and last to statewide education property tax.  In case of insufficient payment by a taxpayer to the department of taxes, payments shall be allocated first to liabilities other than education property taxes, and next to local share property tax, and last to statewide education property tax.

(6)  In case of overpayment by a taxpayer who has an income tax liability under chapter 151 of this title and a homestead property tax liability, a refund of the overpayment, after accounting for any benefit amount allowed under chapter 154 of this title, shall be deemed to be a refund of income tax for purposes of debt setoff under subchapter 12 of chapter 151 of this title.

(7)  Notwithstanding section 435 of this title, the commissioner shall deposit the revenue from taxes imposed under this chapter and the local share property tax under Title 16 in the education fund, credited to the account of the municipality for which it was received.

(8)  A municipality’s liability to the state for education property taxes shall not be reduced by any early payment property tax discount or similar discount offered by the municipality.

* * * Education Spending - Use of Funds * * *

Sec. 18.  16 V.S.A. § 4029 is amended to read:

§ 4029.  USE OF FUNDS FOR LOCAL EDUCATION SPENDING

(a)  Funds for local education spending received by a school district may be used by a school district only for legitimate items of current education expense and shall not be used for municipal services. 

(b)  Funds raised under section 2664 of Title 17, section 2601 of Title 20 or section 1309 of Title 24 shall be used only for municipal services and shall not be used for educational expenses received by a municipality other than a school district may not be used directly or indirectly for education expenses.

(c)  If the commissioner of education determines that a school district has spent funds paid under section 4028 of this title for an item that is not a legitimate item of current education expense, the treasurer of the municipality shall, within 90 days, remit the amount of the expenditure to the education fund.  The treasurer shall use funds raised pursuant to section 2664 of Title 17, section 2601 of Title 20 or section 1309 of Title 24 for this purpose.  If the commissioner of education determines that a municipality other than a school district has spent funds raised under section 2664 of Title 17, section 2601 of Title 20 or section 1309 of Title 24 for an item that is a legitimate item of current education expense, the treasurer of the municipality shall transfer the amount of the expenditure from the local education fund to the municipal fund.

* * *

* * * Small Schools * * *

Sec. 19.  16 V.S.A. § 4015(b), (c), (d) and (e) are amended to read:

(b)  Small schools support grant:  Annually, the commissioner shall pay a small schools support grant to any eligible school district.  The amount of the grant shall be the greater of

(1)  the amount determined by multiplying the two-year average enrollment in the district by $500.00 and subtracting the product from $50,000.00, with a maximum grant of $2,500.00 per enrolled student; or

(2)  the amount of the general state support grant 82 percent of the base education payment for the current year, multiplied by the two-year average enrollment, multiplied by the AGS factor.

(c)  Small schools financial stability grant:  In addition to a small schools support grant, an eligible school district whose two-year average enrollment decreases by more than ten percent in any one year shall receive a small schools financial stability grant.  However, a decrease due to a reduction in the number of grades offered in a school or to a change in policy regarding paying tuition for students shall not be considered an enrollment decrease.  The amount of the grant shall be determined by multiplying the general state support grant amount 82 percent of the base education payment for the current fiscal year, by the number of enrollment, to the nearest one-hundredth of a percent, necessary to make the two-year average enrollment decrease only ten percent.

(d)  Funds for both grants shall be appropriated from the education fund and shall be added to payments for the general state support grant base education payment or deducted from the amount owed to the education fund in the case of those districts that must pay into the fund under section 4027 of this title.

(e)  In the event that a school or schools which have received a grant under this section merge in any year following receipt of a grant, and the consolidated school is not eligible for a grant under this section, the consolidated school shall continue to receive a grant for three years following consolidation.  The amount of the annual grant shall be:

(1)  In the first year following consolidation, an amount equal to the amount received by the school or schools in the last year of eligibility.

(2)  In the second year following consolidation, an amount equal to two‑thirds of the amount received in the previous year.

(3)  In the third year following consolidation, an amount equal to one‑third of the amount received in the first year following consolidation.

* * * Technical Amendments * * *

Sec. 20.  REORGANIZATION OF CHAPTER 133 OF TITLE 16

16 V.S.A. chapter 133 is redesignated as follows:

(1)  The chapter title shall be amended to read:

Chapter 133.  State and Local Funding of Public Education

(2)  The title of subchapter 2 shall be amended to read:

Subchapter 2.  General State Support Funding of Public Education

(3)  The title and designation of subchapter 3 shall be repealed, and the contents of subchapter 3 shall become a part of subchapter 2.

Sec. 21.  REPEALS

The following sections of Title 16 are repealed:

(1)  § 11(29) (local education spending).

(2)  § 4000(b) (policy regarding local education spending).

(3)  § 4001(4) and (5) (yield amount and general state support grant).

Sec. 22.  16 V.S.A. § 4026(e) is amended to read:

(e)  The enactment of this chapter and other provisions of the Equal Educational Opportunity Act of which it is a part have been premised upon estimates of balances of revenues to be raised and expenditures to be made under the act for such purposes as general state support grants for education, adjusted education payments, categorical state support grants, provisions for property tax income sensitivity, payments in lieu of taxes, current use value appraisals, tax stabilization agreements, the stabilization reserve established by this section and for other purposes.  If the stabilization reserve established under this section should in any fiscal year be less than 3.5 percent of the prior fiscal year’s appropriations from the education fund, as defined in subsection (b) of this section, the joint fiscal committee shall provide the general assembly its recommendations for change necessary to restore the stabilization reserve to the statutory level provided in subsection (b) of this section.

Sec. 23. 16  V.S.A. § 4030 is amended to read:

§ 4030.  DATA SUBMISSION; CORRECTIONS

(a)  Upon discovering an error or change in data submitted to the commissioner for the purpose of determining payments to or from the education fund, a school district shall report the error or change to the commissioner as soon as possible.  In this subsection, an error in data is a clerical mistake.  A change in data due to new information or a change in situation is not an error under this subsection, and any resultant Any budget deficit or surplus due to the error or change shall be carried forward to the following year.  A ruling of the commissioner as to whether a change in data is due to error or to new information or a change in situation shall be final.

(b)  The commissioner shall use data submitted on or before January 15 prior to the fiscal year which begins the following July 1, in order to calculate the amounts due each school district for any fiscal year for the following:

(1)  the general state support grant adjusted education payments due under section 4011 of this title;

(2)  transportation aid due under Sec. 98 of Act No. 71 of 1998; and

(3)  the small school support grant due under section 4015 of this title.

(c)  The commissioner shall use data corrections regarding local education budget amounts submitted on or before June 15 prior to the fiscal year which begins the following July 1, in order to calculate the amounts due each school district under section 4027 of this title.

(d)  Errors in data submitted to the commissioner following the dates required for calculations under subsections (b) and (c) of this section shall be used to adjust payments to or from the education fund in the fiscal year following the fiscal year in which the error was reported.  The commissioner shall not use data corrected due to an error submitted following the deadlines to recalculate the equalized pupil ratio under subdivision 4001(3) of this title, or the equalized yield under section 4027 of this title in any yearThe commissioner shall not adjust payments to or from the education fund if an error or change is reported more than three fiscal years following the date that the original data was due.  Adjustments to payments to or from the education fund under this section shall be made on the earliest date possible after the fiscal year in which the error was reported, and in accordance with the schedules set forth in subsections subsection 4028(a), 428(d) and 511(d) of this title and section 5402 of Title 32, and after the necessary appropriation by the general assembly.

(e)  The board may adopt rules as necessary to implement the provisions of this section.

Sec. 24.  32 V.S.A. § 5401(8) is amended to read:

(8)  “Local education Education spending” means “local education spending” as defined in subdivision 4001(6) of Title 16.

Sec. 25.  32  V.S.A. § 5861(f) is added to read:

     (f)  The commissioner shall require information on a Vermont personal income tax return which discloses the amount of real property taxes assessed by a municipality on the taxpayer’s homestead as defined under section 5401(7) of this title, and the uniform parcel identification number of the homestead property.  The commissioner may consider a return incomplete if the information required under this subsection is not provided, and shall cause such return to be completed.

* * * Additional Education Tax Revenue * * *

* * * Sales Tax * * *

Sec 25a.  [Deleted]

Sec. 26.  32  V.S.A. §9771 (5) is amended to read:

     (5)  The sale at retail of telecommunications service provided to a Vermont service address, except that the rate of the tax on telecommunications services, shall be 4.36 percent.           

Sec. 27.  [Deleted]

Sec. 28.  [Deleted]

Sec. 29.  [Deleted]

Sec. 30.  [Deleted]

Sec. 31.  [Deleted]

Sec. 32.  [Deleted]

Sec. 33.  32 V.S.A. § 9771a is amended to read:

§ 9771a.  TELECOMMUNICATIONS SERVICES; CREDITS AND LIMITATIONS TAX LIMITATION

(a)  The amount subject to tax under subdivision 9771(5) of this title shall be reduced by the amount of $20.00 per month per line for each residential purchaser or user of local exchange services.

(b)  No purchaser or user shall be subject to tax under subdivision 9771(5) of this title in excess of $10,000.00 in any one calendar year.

Sec. 34.  [Deleted] 

Sec. 35.  32 V.S.A. § 9741 is amended to read:

§ 9741.  SALES NOT COVERED

Receipts from the following shall be exempt from the tax on retail sales imposed under section 9771 of this title and the use tax imposed under section 9773 of this title.

* * *

(5)  Sales of malt beverages taxed or exempted under chapter 15 of Title 7.

* * *

Sec. 35a.  [Deleted ]

* * * Property Transfer Tax * * *

Sec. 36.  32 V.S.A. § 9602 is amended to read:

§ 9602.  TAX ON TRANSFER OF TITLE TO PROPERTY

A tax is hereby imposed upon the transfer by deed of title to property located in this state.  The amount of the tax equals one and one quarter three‑quarters percent of the value of the property transferred, or $1.00, whichever is greater, except as follows:

(1)  with respect to the transfer of property to be used for the principal residence of the transferee the tax shall be imposed at the rate of five-tenths of one percent of the first $100,000.00 in value of the property transferred and at the rate of one and one quarter three‑quarters percent of the value of the property transferred in excess of $100,000.00, provided that no tax shall be imposed on the first $100,000.00 in value of the property if the purchaser obtains a purchase money mortgage that the Vermont housing finance agency has committed to make or purchase;

(2)  with respect to the transfer of property which is enrolled at the time of the transfer in a program under chapter 124 of this title, or is otherwise a working farm at the time of the transfer if not so enrolled, the tax shall be imposed in the amount of five-tenths of one percent on the entire value of the property transferred; provided, however that no part of the property is converted to a use which would subject it to the land use change tax or an obligation to repay property tax benefits under chapter 124 of this title for a period of three years following the date of the transfer, or if it is a working farm which is not enrolled under chapter 124, that the property is not taken out of agricultural production for a period of six years following the date of the transfer.  For the purposes of this subdivision, a working farm shall mean a parcel of land actively used by a farmer, as that term is defined under section 3752(7) of this title.  If the conditions of this subdivision are breached by the buyer, the buyer shall be obligated to pay the full transfer tax in the amount of one and one-quarter three‑quarters percent and this obligation shall run with the land.

(3)  with respect to the transfer to a housing cooperative organized under chapter 7 and whose sole purpose is to provide principal residences for all of its members or shareholders, or to an affordable housing cooperative under chapter 14 of Title 11, of property to be used as the principal residence of a member or shareholder, the tax shall be imposed in the amount of five-tenths of one percent of the first $100,000.00 in value of the residence transferred and at the rate of one and one-quarter three-quarters percent of the value of the residence transferred in excess of $100,000.00; provided that the homesite leased by the cooperative is used exclusively as the principal residence of a member or shareholder.  If the transferee ceases to be an eligible cooperative at any time during the six years following the date of transfer, the transferee shall then become obligated to pay any reduction in property transfer tax provided under this subdivision, and the obligation to pay the additional tax shall also run with the land.

* * * Meals and Rooms Tax ***

Sec. 36a.  32  V.S.A. §9241 (a) and (b) are amended to read:

§ 9241. IMPOSITION OF TAX

(a) An operator shall collect a tax of nine ten percent of the rent of each occupancy.

(b) An operator shall collect a tax on the sale of each taxable meal at the rate of nine ten percent of each full dollar of the total charge and on each sale for less than one dollar and on each part of a dollar in excess of a full dollar in accordance with the following formula:

                 $0.01-0.11                 $0.01   $0.01 – 0.10             $0.01

                               0.12-0.22                     0.02    0.11 – 0.20             0.02

                  0.23-0.33                     0.03   0.21 – 0.30             0.03

                  0.34-0.44                     0.04   0.31 -  0.40             0.04

                  0.45-0.55                     0.05   0.41 -  0.50             0.05

                  0.56-0.66                     0.06   0.51 – 0.60             0.06

                  0.67-0.77                     0.07   0.61 – 0.70             0.07

                  0.78-0.88                     0.08   0.71 – 0.80             0.08

0.89-1.0                          0.09    0.81 – 0.90            0.09

                                                   0.91 – 1.00                        0.10     

Sec. 36b.  32  V.S.A. § 9242(c) is amended to read:

     (c) A tax of nine percent of on the gross receipts from meals and occupancies and ten percent of on the gross receipts from alcoholic beverages, at the rates imposed under section 9241 of this title, exclusive of taxes collected pursuant to section 9241 of this title, received from occupancy rentals, taxable meals and alcoholic beverages by an operator, is hereby levied and imposed and shall be paid to the state by the operator as herein provided. Every person required to file a return under this chapter shall, at the time of filing the return, pay the commissioner the taxes imposed by this chapter as well as all other monies collected by him or her under this chapter; provided, however, that every person who collects the taxes on taxable meals and alcoholic beverages according to the tax bracket schedules of section 9241 of this title shall be allowed to retain any amount lawfully collected by the person in excess of the tax imposed by this chapter as compensation for the keeping of prescribed records and the proper account and remitting of taxes.

* * *  Use Tax Collection – PIT * * *

Sec. 36c.  32  V.S.A. §5870 is added to read:

§5870  REPORTING USE TAX ON INDIVIDUAL INCOME TAX RETURNS

     The commissioner of taxes shall provide that individuals report use tax on their state individual income tax returns.  Taxpayers are required to attest to the amount of their use tax liability under Chapter 233 of this title for the period of the tax return.  Alternatively, they may elect to report an amount that is .04% of their Vermont adjusted gross income, as shown on a table published by the commissioner of taxes; and use tax liability arising from the purchase of each item with a purchase price in excess of $1,000.00 shall be added to the table amount.

* * * Tobacco products tax * * *

Sec. 36d.   32  V.S.A. §7811 is amended to read:

§ 7811. IMPOSITION OF TOBACCO PRODUCTS TAX

There is hereby imposed and shall be paid a tax on all tobacco products possessed in the state of Vermont by any person for sale on and after July 1, 1959 which were imported into the state or manufactured in the state after said date, except that no tax shall be imposed on tobacco products sold under such circumstances that this state is without power to impose such tax, or sold to the United States, or sold to or by a voluntary unincorporated organization of the armed forces of the United States operating a place for the sale of goods pursuant to regulations promulgated by the appropriate executive agency of the United States. Such tax on tobacco products shall be at the rate of 41 82 percent of the wholesale price and is intended to be imposed only once upon any tobacco product. Provided, however, that upon payment of the tax within ten days, the distributor or dealer may deduct from the tax two percent of the tax due. It shall be presumed that all tobacco products within the state are subject to tax until the contrary is established and the burden of proof that any tobacco products are not taxable hereunder shall be upon the person in possession thereof.

Sec. 36e. 32  V.S.A. § 7814(a) is amended to read:

§ 7814.  FLOOR STOCK TAX

(a)  Tobacco products.  A floor stock tax is hereby imposed upon every retailer of tobacco products in this state at the rate of 21 41 percent of the wholesale price of each tobacco product.  The tax shall apply to tobacco products in the possession or control of the retailer at 12:01 a.m. o'clock on July 1, 1995 2003, but shall not apply to retailers who hold less than $500.00 in wholesale value of such tobacco products.  Each retailer subject to the tax shall, on or before July 25, 1995 2003 , file a report to the commissioner in such form as the commissioner may prescribe showing the tobacco products on hand at 12:01 a.m. o'clock on July 1, 1995 2003, and the amount of tax due thereon.  The tax imposed by this section shall be due and payable on or before July 25, 1995 2003 , and thereafter shall bear interest at the rate established under section 3108 of this title. In case of timely payment of the tax, the retailer may deduct from the tax due two percent of the tax. Any tobacco product with respect to which a floor stock tax has been imposed and paid under this section shall not again be subject to tax under section 7811 of this title.

* * * Education Fund; Dedication of Revenues * * *

Sec. 37.  16 V.S.A. § 4025(a) is amended to read:

§ 4025.  EDUCATION FUND

(a)  An education fund is established to be comprised of the following:

(1)  All revenue paid to the state from the education property tax statewide education tax on nonresidential and homestead property under chapter 135 of Title 32.

(2)  Local share property tax revenues from those school districts which adopt budgets with local education spending in excess of the general state support grant and which are able to raise more than the yield amount.

(3)(2)  Funds appropriated or transferred by the general assembly, and for fiscal year 2006 and thereafter there is appropriated and transferred the amount determined as follows:  Annually on September 15, the amount to be appropriated and transferred under this subdivision for the following fiscal year shall be determined by multiplying the appropriation under this subdivision for the current fiscal year, by the percentage change in general fund base spending as of September 15 for the current fiscal year over the general fund base spending in the prior fiscal year.  For each fiscal year the governor shall present a budget to the legislature providing for a general fund appropriation and transfer to the education fund in this amount, and the legislature shall appropriate and transfer this amount adjusted as necessary to reflect the actual amount of general fund base spending enacted by the legislature for that fiscal year.

(4)(3)  Revenues from state lotteries under chapter 14 of Title 31, and from any multijurisdictional lottery game authorized under that chapter.

(4)  Revenue from the electric generating plant education property tax under section 5402a of this title.

(5)  Twenty percent of the revenues raised by the tax imposed by chapter 225 of Title 32 on meals, rooms and alcoholic beverages, less an annual amount equal to $1,560,000.00 which shall remain in the general fund dedicated to the purposes of promotion of tourism and marketing.

(6)  Nineteen percent of the tax on income of corporations, including S corporations, partnerships, and limited liability companies raised by chapter 151 of Title 32.

(7)  Fifty-eight and three-tenths percent of the revenues raised by the bank franchise tax imposed by section 5836 of Title 32.

(8)  Revenues raised by the tax on telecommunications services imposed by Secs. 76 through 84 of Act No. 60 of the Acts of 1997.

(9)  Revenues raised by the increase in brokerage fees imposed by Sec. 85 of Act No. 60 of the Acts of 1997.

(10)  Twenty-one percent of the revenues raised by the motor fuel tax on gasoline in fiscal year 1999, and 16 percent of the revenues raised by the motor fuel tax on gasoline in fiscal year 2000 and thereafter. 

(11)  One-sixth (5)  One-third of the revenues raised from the purchase and use tax imposed by chapter 219 of Title 32, notwithstanding 19 V.S.A. § 11(1).  Notwithstanding the provisions of this subdivision, only 12 percent of the revenue generated from the tax on short-term motor vehicle rentals, established in 32 V.S.A. § 8903(d), shall be deposited in the education fund.

(12)(6)  Forty percent of the revenues raised from the sales and use tax imposed by chapter 233 of Title 32.

(13)(7)  Medicaid reimbursement funds pursuant to subsection 2959a(f) of this title.

* * * General Fund; Dedication of Revenues * * *

Sec. 38.  32 V.S.A. § 435(b)(11) is amended to read:

(b)  The general fund shall be composed of revenues from the following sources:

* * *

(11)  Sales Sixty percent of the revenue from sales and use taxes levied pursuant to chapter 233 of this title;

Sec. 39.  32 V.S.A. § 435(b)(10) is amended to read:

(10)  33 48 percent of the revenue from the property transfer taxes levied pursuant to chapter 231 of this title; and the revenue from the gains taxes levied each year pursuant to chapter 236 of this title;

Sec. 40.  24 V.S.A. § 4306(a) is amended to read:

(a)  A municipal and regional planning fund for the purpose of assisting municipal and regional planning commissions to carry out the intent of this chapter is hereby created in the state treasury.  The fund shall be comprised of 17 13 percent of the revenue from the property transfer tax under chapter 231 of Title 32 and any moneys from time to time appropriated to the fund by the general assembly or received from any other source, private or public.  All balances at the end of any fiscal year shall be carried forward and remain in the fund.  Interest earned by the fund shall be deposited in the fund.  Of the revenues in the fund, each year 10 percent shall be disbursed to the Vermont center for geographic information; 70 percent shall be disbursed to regional planning commissions; and 20 percent shall be disbursed to municipalities.

Sec. 41.  10 V.S.A. § 312 is amended to read:

§ 312.  CREATION OF VERMONT HOUSING AND CONSERVATION

     TRUST FUND

There is created a special fund in the state treasury to be known as the “Vermont housing and conservation trust fund.”  The fund shall be administered by the board and expenditures there from shall only be made to implement and effectuate the policies and purposes of this chapter.  The fund shall be comprised of 50 39 percent of the revenue from the property transfer tax under chapter 231 of Title 32, and any moneys from time to time appropriated to the fund by the general assembly or received from any other source, private or public, approved by the board.  Unexpended balances and any earnings shall remain in the fund for use in accord with the purposes of this chapter.

* * * JTOC Allocation * * *

Sec. 42.  19 V.S.A. § 11a is amended to read:

§ 11a.  TRANSPORTATION FUNDS APPROPRIATED FOR SUPPORT OF GOVERNMENT

The maximum amount of transportation funds that may be appropriated for the support of government, other than for the agency of transportation, transportation pay act funds, the cost of maintaining and staffing rest areas, construction of transportation capital facilities used by the agency of transportation, and transportation debt service, shall not exceed 20.5 19 percent of the total of the prior fiscal year transportation fund appropriations.

* * * Other School Funding Provisions * * *

Sec. 43.  [Deleted]

Sec. 44.  Sec. 38(3) of No. 159 of the Acts of the 1999 Adj. Sess. (2000) is amended to read:

(3)  The excess valuation of property within a tax increment financing district organized and created pursuant to Sec. 37 of this act, to the extent that taxes generated on the excess property valuation are pledged and appropriated for debt service on bonds issued under section 1897 of Title 24 or the funding of reserves under subdivision (2) of this section, shall not be included within the education property tax grand list provided for in section 5404 of Title 32 as taxable property, nor shall the excess valuation of the property be subject to the education property tax imposed under section 5402 of Title 32 until bonds issued under section 1897 of Title 24 are released, discharged, paid, defeased, or fully reserved; provided, however, that 5 percent of the education taxes imposed annually on the excess valuation of the residential property within the district shall be paid to the education fund.  The tax rate assessed on the excess value of property within the district shall be the same rate assessed on property outside the district.  Until the bonds are paid in full or have been fully redeemed or defeased through fully funded reserves and accounts, 100 percent of the municipal taxes assessed against the excess valuation of property within the district shall be pledged and appropriated solely for debt service on the bonds.  For purposes of this act, “excess valuation” means the difference between the current grand list value and the grand list value at commencement of the development on April 1 immediately preceding the date of issuance of bonds under Sec. 38(1) of this act.

Sec. 45.  32 V.S.A. § 5405(d) is amended to read:

(d)  Any determination of fair market value made by the commissioner under this section shall be based upon such methods, as in the judgment of the commissioner, and in view of the resources available for that purpose, shall be appropriate to support that determination.  If the common level of appraisal is calculated using the weighted mean of ratios, any outlier shall be carefully reviewed and deleted if it will significantly affect the weighted mean, particularly if the outlier is a high-value property.

* * * Education Cost Containment * * *

Sec. 45a.  Sec. 10(a) of No. 117 of the Acts of the 1999 Adj. Sess. (2000) is amended to read:

(a)  The general assembly hereby establishes the following targets for limiting increases in statewide total education expenditures as that term is used in 16 V.S.A. § 2967(b):

* * *

(3)  in for fiscal year 2004 and each year thereafter until a new special education funding formula is enacted, the average annual change in the actual nominal Vermont State Domestic Product for the preceding five years as published by the United States Department of Commerce, plus two percentage points.

Sec. 45b.  EDUCATION MANDATES; REMOVAL OF BURDENSOME                                        REQUIREMENTS

(a)  The commissioner of education shall request that the Vermont school boards association, the Vermont superintendents association and the Vermont principals association develop a list of all requirements placed on local school districts which are believed to be unnecessarily burdensome or redundant.  The list shall be finished by November 1, 2003 and should be in the form of a request to remove or revise the requirements.

(b)  For each requirement listed, on or before January 15, 2004, the commissioner shall either remove or revise the requirement, promptly initiate any process necessary to removing or revising the requirement, state that the requirement is statutory and recommend legislative change which would remove or revise the requirement, or state that the requirement should remain because it serves a fundamental need.

Sec. 45c.  3 V.S.A. § 832b is added to read:

§ 832b.  ADMINISTRATIVE RULES AFFECTING SCHOOL DISTRICTS

     If a rule affects or provides for the regulation of public education and public schools,  the agency proposing the rule shall evaluate the cost implications to local school districts and school taxpayers, clearly state the associated costs, and report them in a local school cost impact statement to be filed with the economic impact statement on the rule required by subsection 838(c) of this title.   An agency proposing a rule affecting school districts shall also consider and include in the local school cost impact statement an evaluation of alternatives to the rule, including no rule on the subject, which would reduce or ameliorate costs to local school districts while achieving the objectives or purposes of the proposed rule.  The legislative committee on administrative rules may object to any proposed rule if  a local school cost impact statement is not filed with the proposed rule, or if the impact statement fails to recognize a substantial economic impact of the proposed rule that the committee describes in its notice of objection.  The committee may object one time under this section and return the proposed rule to the agency as unacceptable for filing.  The agency may then cure the defect and adopt the rule, or it may adopt the rule without change.

Sec. 45d. [Deleted]

Sec. 45e.  SPECIAL EDUCATION; COST CONTAINMENT IMPLEMENTATION PLAN

(a) The commissioner of education and secretary of human services shall prepare a plan to establish a cost effective system for delivery of special education services to children served by both agencies, including those in transition from school to adult services.  The plan shall describe appropriate roles for each agency and how the two agencies will coordinate service delivery in a way that will ensure high quality, seamless, efficient and cost effective services to special education students. 

(b) The plan prepared under this section shall be based on a thorough review of existing reports, activities and efforts pertaining to special education services.  Following the review the secretary and commissioner shall make a recommendation based on the review and the following:

(1)  The provisions of the federal No Child Left Behind Act.

(2)  The impending reauthorization of the federal Individuals with Disabilities Education Act.

(3)  The results of the Vermont special education Medicaid audit currently being conducted by the federal government.

(4) The proposed special education formula requested in Act No. 117 of 2000 which will be presented to the general assembly by January, 2004.

(c)  The plan shall include provisions to contain growth in special education costs, and be written with enough detail to enable the senate and house appropriations and education committees to prepare legislation to implement the plan for introduction in January, 2004.  The secretary and commissioner shall present the plan to the senate and house committees on appropriations and education no later than November 15, 2003

Sec. 45f.  [Deleted] 

Sec. 45g.  [Deleted]

Sec. 45h.  [Deleted]

Sec. 45i. 16 V.S.A. § 563(11) is amended to read:

(11)  Shall prepare and distribute annually a proposed budget for the next school year according to such major categories as may from time to time be prescribed by the commissioner.  Any proposed budget shall show all revenues and expenses, and shall state the specific amount of any deficit incurred in the most recently closed fiscal year and how the deficit was or will be remedied. The proposed budget shall be prepared and distributed at least ten days before a sum of money is voted on by the electorate.  Any proposed budget shall show the following information in a format prescribed by the commissioner of education:

(A) all revenues from all sources and expenses, including as separate items any assessment for a union school district or a supervisory union of which it is a member;

(B) the specific amount of any deficit incurred in the most recently closed fiscal year and how the deficit was or will be remedied;

(C)  the anticipated homestead tax rate and the percentage of household income used to determine income sensitivity in the district  as a result of passage of the budget; including those portions of the tax rate attributable to the union school and supervisory union assessments; and

(D) in the case of a school district other than a union school district, the definition of “education spending”, the number of pupils and number of equalized pupils in the school district, and the district’s education spending per equalized pupil in the proposed budget and in each of the prior three years;           or

(E)  in the case of a union school district, the amount of the assessment to each of the member districts and the amount of the assessments per equalized pupil in the proposed budget and for the past three years.

Sec. 46.  [Deleted]

Sec. 46a.  Sec. 43 of No. 144 of the Acts of 2001, Adj., as amended, is amended to read:

Sec. 43.  FINANCE OF SCHOOL CONSTRUCTION

     (a)  Notwithstanding any provisions of Titles 16 and 32, a school district, or a Vermont participant in an interstate school district, may vote to remove spending, including capital debt service, for capital school construction costs certified by the commissioner as eligible for approval under 16 V.S.A. § 3448(a)(8), voted after July 1, 2002, and begun in fiscal years 2003, 2004 or 2005, from the calculation of its local education spending for any fiscal year.  A school district, or a Vermont participant in an interstate school district, which has voted a capital school construction project after April 1999, but before July 1, 2002, and which has begun construction before July 1, 2002, may vote to remove spending for capital debt service on costs which the commissioner certifies would be eligible for approval under 16 V.S.A. § 3448(a)(8), from its local education spending for any fiscal year beginning July 1, 2002 or after.  The legislative body in the municipality shall then assess each owner on the municipality’s education property tax grand list at the rate necessary to raise the capital construction spending amount removed from local education spending, and shall identify the amount of that tax separately with the tax bill.  “School district” under this subsection means a district which pays statewide property tax at the rate  rates set under 32 V.S.A. § 5402.

     (b)  A school district other than a Vermont participant in an interstate school district, which votes to remove certified capital school construction spending from local education spending under this section shall not be entitled to state school construction aid under chapter 123 of Title 16 for that capital construction.  The education tax rate of a district that is a member of a union district, and that does not vote to remove capital construction spending from its local education spending under this section, shall remain at a rate unaffected by the removal of spending by any other district in the union; and the commissioner of education shall develop a methodology to implement this provision.

     (c)  For each member of a union district that votes as authorized under subsection (a), the state school construction aid of the union school district shall be reduced by the portion allocable to the excluded capital construction spending of that member; and the allocation of expenses under the union district agreement shall be adjusted accordingly.

     (d)  The Department of Education shall study school construction needs, funding equity and methodologies, and propose a school construction aid formula and budget for the fiscal year 2004 capital construction act that restores substantial equity to all Vermont’s children according to 16

V.S.A. § 1.

     (e)  A school district or a Vermont participant in an interstate school district  which votes to remove school construction spending from education spending under this section may later vote to rescind the removal of construction spending from education spending for any future fiscal year.

* * * Streamlined Sales Tax Provisions * * *

Sec. 47.  [Deleted]

Sec. 48.  [Deleted]

Sec. 49.  [Deleted]

Sec. 50.  [Deleted]

Sec. 51.  [Deleted]

Sec. 52.  [Deleted]

Sec. 53.  [Deleted]

Sec. 54.  [Deleted]

Sec. 54a. [Deleted]

Sec. 55.  [Deleted]

Sec. 56.  [Deleted]

Sec. 57.  [Deleted]

Sec. 58.  [Deleted]

Sec. 59.  [Deleted]

Sec. 60.  [Deleted]

Sec. 61.  [Deleted]

* * *Local Option Tax* * *

Sec. 62.  24 V.S.A. § 138 (a) (1) and (2) are amended to read:

 (a)  Local option taxes are authorized under this section for the purpose of affording municipalities an alternative method of raising municipal revenues to facilitate the transition and reduce the dislocations in those municipalities that may be caused by reforms to the method of financing public education under the Equal Educational Opportunity Act of 1997.  Accordingly,:

(1)  the local option taxes authorized under this section may be imposed by a municipality only during calendar years 1999 through 2004 2008;

(2)  a municipality opting to impose a local option tax may do so prior to July 1, 1998 to be effective beginning January 1, 1999, and anytime after December 1, 1998 a local option tax shall be effective beginning on the next tax quarter following 30 days’ notice to the department of taxes of the imposition; and all authority to opt to impose a local option tax under this section shall terminate September 1, 2003 2007, and all authority to impose a local option tax shall terminate on December 31, 2004 2008; and

* * * Studies * * *

Sec. 63. [Deleted]

Sec. 64  JOINT LEGISLATIVE EDUCATION COST CONTAINMENT STUDY

     (a)  To create a sustainable education funding law, the state is committed to work with school boards to target cost drivers and reduce the cost of education.  Accordingly, there is created a joint legislative committee, to be known as the Joint Legislative Education Cost Containment Study Committee to consider ways to contain education costs throughout the system of education finance.  The joint committee shall take testimony on the cost drivers facing public education and the impact of future trends on these costs factors.  The joint committee’s review shall include but not be limited to the following:

          (1)  special education uniform standards of service and litigation reduction strategies;

          (2)  review of district size to identify opportunities for economies of scale in administrative services;

     (3)  review of teacher-student ratios and class size;

     (4)  potential for savings through coordinated staff and teacher recruitment and screening and possible state funded assistance with teacher and staff bargaining support;

          (5)  costs savings resulting from a review of state and local mandates;

          (6)  opportunities for joint purchasing of services or centralized services including insurance products, supplies, materials, uniform computer systems;

          (7)  review of health insurance and workers compensation as to budget impacts, including levels of premiums, co-payments and plan quality as compared to that provided to other public sector employees including the state employees;

          (8)  potential for technology related savings including use of remote communication and video technology  to increase class offerings and other initiatives;

          (9)  opportunities for improved facilities utilization strategies including program co-location or other initiatives;

          (10)  opportunities for efficiencies in funding technical education facilities and programs, and alternatives for payment of technical education costs;

          (11)  various costs, incentives and disincentives through the interplay of current state funding provided to special education, technical education and local schools; and

(12)  alternatives for an inflation index to be applied to the base education payment.

     (b)  The joint committee shall be comprised of four members of the House, not all from the same political party, appointed by the Speaker from each of the House Committees on Ways and Means, Education, and Appropriations, and one additional House member appointed at large; and four members of the Senate, not all from the same political party, appointed by the Senate Committee on Committees, from the Senate Committees on Finance, Appropriations, Education, and one additional Senator appointed at large.

     (c)  The joint committee shall meet no more than eight times and hold at least one public hearing.  The joint committee shall seek comment and participation from the Vermont Association of School Business Officers, the Vermont N.E.A., the Associations of School Superintendents, Principals, School Boards and Directors of Special Education, from representatives of the business community, and the public at large.  It shall submit a report by January 15, 2004, to the Clerk of the House and Secretary of the Senate.  The report shall contain recommendations for education cost containment; no more than 10 key indicators of cost effectiveness; and an inflation index for the base education payment which more accurately reflects the components driving school costs.  For purposes of this subsection, a “key indicator” is a measurement which enables analysis of the cost effectiveness of education services.  Members of the joint committee shall be entitled to compensation and expenses as provided in 2 V.S.A. § 406.  The joint committee shall be entitled to the services of the legislative council and the joint fiscal office, and shall be assisted, upon request, by other state agencies.

Sec. 64a.  COUNCIL ON EDUCATION GOVERNANCE

(a)  The Vermont general assembly declares that:

(1)  it is committed to providing all Vermont students the opportunity for a high quality education in an affordable and cost‑effective manner to meet the expectations of local communities and the requirements of state and federal law; and

(2)  it has a keen interest in addressing the matter of education governance in Vermont in a manner that includes participation by citizens and local education officials; and

(3)  increasing concerns about the rising costs of education and declining enrollments, the ongoing quest for educational quality, and the influences of expanding state and federal policy directives, including those of the No Child Left Behind Act and the Individuals with Disabilities Education Act, add to the necessity for examining Vermont’s education governance system.

(b)  There is established a council on education governance to consist of three members of the senate, not all from the same party, chosen by the committee on committees; three members of the house, not all from the same party, chosen by the speaker; the secretary of administration; the secretary of human services, or designee; a member of the state board of education chosen by the chair of the board; two representatives of the business community chosen by the governor; two parents chosen jointly by the governor and the commissioner of education after consultation with organizations representing parents and children; a representative of school boards chosen by the school boards association; a representative of teachers chosen by the Vermont national teachers association; a representative of superintendents chosen by the superintendents association; and a representative of principals chosen by the principals association.  It is the intent of the general assembly that council members, in addition to having knowledge about the needs and challenges facing people working in and served by Vermont’s education system, shall be individuals who have knowledge of organization and systems development and who have the ability to analyze and communicate economic and educational data.  The council shall receive staff services from the legislative council and the joint fiscal office.  Members not otherwise compensated shall be entitled to per diem and expenses.

(c)  The council shall gather information which will enable it to develop a comprehensive description of Vermont’s current education governance system.  Information gathered should include cost information; federal and state requirements and other factors which influence how services are delivered; efforts in other jurisdictions to achieve equity, affordability, and quality; and an examination of elements in the current system which work well, and those which inhibit effective and efficient delivery of education services.

(d)  The council shall use this information to develop and implement a process for engaging a broad spectrum of Vermonters in a discussion of effective governance structures for delivery of public education with consideration of the need to address rising costs while maintaining Vermont’s high quality education system.

(e)  Following widespread public discussion, if the council determines that greater efficiencies and enhanced quality would result from modifications to the governance structure, it shall recommend legislation for consideration by the general assembly.

(f)  The council shall report to the general assembly in January 2004 and 2005 on its progress together with its recommendations for legislation, including steps which are necessary to comply with the No Child Left Behind Act.

(g)  The council shall hold its first meeting by September 15, 2003 and shall finish its work and cease to exist on July 1, 2005.

(h)  The council shall seek private sources of funding to enable it to gather data and develop a process for conducting a statewide discussion about education governance, and for implementing the process it develops. 

Sec. 65.  [Deleted]

Sec. 66.  [Deleted]

Sec. 67.  [Deleted]

Sec. 67a. [Deleted]

Sec. 67b.  GRAND LIST ISSUES STUDY

     The Legislative Council and Joint Fiscal Office, in consultation with the department of taxes, Vermont League of Cities and Towns and Vermont Assessors and Listers Association, shall study the issues affecting grand list valuation and their impact on property tax equity, including the following:

     (a)  factors contributing to fluctuations in common levels of appraisal and variations in coefficients of dispersion;

     (b)  local capacity for appraisal of utility, commercial and industrial property; and shall report to the general assembly by January 15, 2004, on legislative options to address these issues.

     (c) the fiscal impact of the homestead property tax income sensitivity adjustment, as it may be affected by adjusting the allowable acreage surrounding an eligible homestead from two acres to 25 or 27 acres, or other appropriate acreage.

* * * Transitional Provisions * * *

Sec. 68.  Transition Rules for Determining Statewide Education Tax Municipal Liabilities for Fiscal Year 2005

     (a)  Notwithstanding the provisions of chapter 135 of Title 32, the Department of Taxes shall calculate a municipality’s statewide education tax liability (but not individual taxpayer’s education property tax liabilities) for fiscal year 2005 by estimating the equalized value of nonresidential and homestead property, using the equalized grand list published by the Division of Property Valuation and Review in January 2004, as follows:

(1)  Homestead property value shall be deemed in the aggregate to be equal to 90 percent of the value of property listed as R1, R2, MHL, MHU, Farm, or Other (for any properties in the “Other” class which are residential properties), and which is listed as owned by a resident of the municipality;

(2)  Nonresidential property value shall be deemed to be the total equalized grand list value for the municipality minus the homestead value determined under subdivision (a)(1) of this section.

(b)  Determinations made by the Department of Taxes in accord with this section shall not be subject to appeal.

* * * Fiscal Year 2004 Provisions * * *

Sec. 69.  [Deleted]

* * * FY 04 Block Grant * * *

Sec. 70.  FISCAL YEAR 2004 GENERAL STATE SUPPORT GRANT

Notwithstanding the provisions of  16 V.S.A. § 4011(a), the general state support grant for each equalized pupil in fiscal year 2004 shall be $5,810.00.

* * * Fund Appropriations and Transfers * * *

Sec. 71.  FUND APPROPRIATIONS AND TRANSFERS

     (a)  In fiscal year 2004, the amount of $260,500,000.00 is appropriated and transferred from the general fund to the education fund.  Of this appropriation, $14,022.00 shall be used by the commissioner to issue as payment to the town of Middlebury for a change in valuation in the education tax liability resulting from the change of status of the Addison county community action group property.

     (b)  In fiscal year 2005, $226,600,000.00 shall be appropriated and transferred from the general fund to the education fund.

     (c)  In fiscal year 2006 and thereafter, there shall be appropriated and transferred from the general fund to the education fund the amounts prescribed by 16 V.S.A. § 4025(a)(2).

     (d)  It is furthermore the intention of the general assembly in fiscal year 2008, upon the termination of the education income tax surcharge on December 31, 2007, and the reversion of the meals and rooms tax rate to 9 percent on June 30, 2007, to adjust the general fund transfer to the education fund to maintain equitable distribution of revenues between the funds.

Sec. 72.  TAX DEPARTMENT IMPLEMENTATION

Notwithstanding any other provision of law, there is appropriated from the education fund to the commissioner of taxes in fiscal year 2004, for implementation of the provisions of this act, the sum of $734,472.

Sec. 72a. [Deleted]

Sec. 72b. [Deleted]

Sec. 72c. [Deleted]

Sec. 72d.  16  V.S.A. § 711a(c) is added to read:

(c)  Beginning in fiscal year 2006, for purposes of this subdivision, equalized pupils shall be calculated for a union school district and its member districts by counting the full-time equivalent enrollment in the union school during the census period pursuant to subdivision 4001(1) of this title, weighting that count for elementary and secondary pupils pursuant to subsection 4010(b) of this title, and dividing the weighted count by the ratio of statewide long-term average daily membership to the statewide long-term weighted average daily membership as calculated pursuant to subdivision 4001(3) of this title.  A budget proposed under subsection (a) of this section shall show:

(1)  the spending per equalized pupil for the union school district, and

(2) the assessment that would be due from each member district if the assessment were based on the equalized pupils from the member district. 

Sec. 72e.  16  V.S.A. § 711(a) is amended to read:

(a) Unless the member districts shall have made a different agreement among themselves as to the division of the The expense of building, maintaining and operating schools within the union school district, the expense shall be divided among them in the proportion which the student enrollment in each member district for the previous school year bears to the total number of the students for that year enrolled in all the districts together. "Student enrollment" as to any given school year, as used herein includes any student, other than a state-placed student, residing in a member district and enrolled in a public school in the union district during the course of the year in the grades which the union district votes to construct, maintain or operate. A student enrolled for less than the full school year shall be counted fractionally in the proportion which the number of days for which he or she was enrolled bears to the total number of days on which school was in session  the member districts in the proportion in which the average of equalized pupils for the last two years in each member district bears to the total number of equalized pupils enrolled in all the districts together.  In this section, “equalized pupils” means the full-time equivalent enrollment in the union school during the census period pursuant to subdivision 4001(1) of this title, weighting that count for elementary and secondary pupils pursuant to subsection 4010(b) of this title, and dividing the weighted count by the ratio of statewide long-term average daily membership to the statewide long-term weighted average daily membership as calculated pursuant to subdivision 4001(3) of this title.

Sec. 72f. [Deleted]

Sec. 72g.  32  V.S.A. § 5404(g) is amended to read:

     (g) If the homestead or nonresidential grand list of a municipality drops more than 15 percent from the prior year, due to extraordinary loss in the tax base and not due to any townwide reappraisal, as determined by the director of property valuation and review, then the departments of education and taxes shall use the most current homestead or nonresidential grand list and the most current common level of appraisal to estimate an equalized homestead or nonresidential grand list to use for purposes of state education tax liability.

Sec. 72h.  STUDENT-TEACHER RATIO RECOMMENDATION

     The Vermont Department of Education, in cooperation with the Associations representing teachers, principals, special education directors and superintendent of schools, are directed to submit recommendations to the Senate appropriations, education and finance committees no later than Jan 15, 2004 that addresses appropriate student to educator ratios for the primary grades (1 to 4), the middle school grades (5 to 8) and secondary  school courses according to content area.  These recommendations should consider current research regarding class size, “best practices” for staffing school buildings and supervisory union offices with administrators, support personnel and other professional positions. The School Quality Standards and their predecessors, the Vermont Public School Approval Standards, should provide some guidance as to the rationale for current staffing levels. 

     Recommendations as to how to most effectively train schoolboard members and administrators on budget development processes and strategies for meaningful public engagement on budget issues should also be included.

* * * Effective Dates * * *

Sec. 73.  EFFECTIVE DATES

This section shall take effect upon passage, and:

(1)  Secs. 1 through 4a, relating to education property tax, shall apply to fiscal years 2005 and after; except that all after the first sentence of 32 V.S.A. § 5402(b)(3) shall apply to tax bills issued after April 1, 2005; and except that in Sec.3a, in §5401 (13), the percentage of statewide average spending used to calculate the district spending adjustment in fiscal year 2005 shall be 135 percent, and in fiscal year 2006 shall be 130 percent, and in fiscal years 2007 and thereafter shall be 125 percent.  

(2)  Sec. 5, relating to declaration of homestead, shall take effect January 1, 2004.

(3)  Secs. 6-10, relating to homestead tax adjustments, shall take effect January 1, 2004, and shall apply to claims filed in 2004 and after.

(4)  Secs. 11-15 and 17-25, relating to miscellaneous conforming changes to education property tax provisions, shall apply to fiscal years 2005 and after.

(5)  Secs. 26 and 33-35, relating to sales taxes on telecommunication services and beer, shall apply to sales and uses on and after July 1, 2003.

(6)  Sec. 36, relating to the property transfer tax increase, shall apply to transfers on and after July 1, 2003; and Secs. 39 and 40, relating to the allocation of property transfer tax revenues shall take effect July 1, 2003.

(7)  Sec. 36a, relating to the increase in the meals and rooms tax, shall take effect  July 1, 2003, and shall terminate July 1, 2007 at which time the rate shall revert to nine percent; and Sec. 36b, relating to reference to meals and rooms tax rates, shall take effect upon passage.  The ten percent rate effective July 1, 2003, shall apply to sales of meals and rentals of rooms on or after July 1, 2003, provided, however, that receipts from meals and occupancies reserved pursuant to a written contract entered into prior to May 15, 2003, and occurring prior to January 1, 2004, shall be taxed at the rate of nine percent.

(8)  Sec. 36c, relating to use tax collections on the individual income tax, shall take effect July 1, 2003.

(9)  Sec. 36d, relating to the tobacco products tax, shall take effect July 1, 2003.

(10)  Secs. 37, 38, 39, 40, 41, and 42, relating to the dedication of revenues, shall take effect July 1, 2003.

(11)  Secs. 43-45, relating to other school funding provisions, shall take effect upon passage.

(12)  Secs. 45a, 45b, 45c, 45e, and 45h relating to education cost containment, shall take effect July 1, 2003.

(13) Sec. 45i shall take effect upon passage, except it shall apply to union school districts and their member districts beginning July 1, 2005.  It is the intent of the general assembly to ensure that the information requested in this section will be provided to voters.  Therefore, during the next legislative session general assembly shall consider how to assign an equalized pupil count to union school districts, and provide union school districts with direct state aid so that voters will be able to determine exactly how much of their tax revenues are allocated to the union school.  In addition, the general assembly will be closely monitoring the governance study required under this act to ensure that if school districts are reorganized, that voters will be provided with information that will enable them to make informed thoughtful education budgetary decisions.

(14)  Secs. 62 , relating to local option taxes, shall take effect upon passage.

(15)  Secs. 64 and 64a, relating to studies, shall take effect upon passage.

(16)  Secs. 70, 71 and 72 relating to fiscal year 2004 provisions, shall take effect upon passage.

(17)  Secs. 72d and 72e, relating to the calculation of equalized pupils, shall take effect July 1, 2005.

    (18)  [Deleted]

(19)  Secs. 72g relating to grand list reductions, shall take effect July 1, 2003.

(20)  Sec. 72h, relating to student-teacher ratio recommendations, shall take effect from passage.

(Committee Vote: 5-2-0)

Reported favorably with recommendation of proposal of amendment by Senator Campbell for the Committee on Appropriations.

The Committee recommends that the Senate propose to the House to amend the bill by inserting a new Sec. 72b. to read:

Sec. 72b.  CONSOLIDATION OF SCHOOL DISTRICTS; PLANNING GRANTS; SUNSET

(a)  A planning committee created pursuant to 16  V.S.A. § 706 to study the advisability of creating a unified union school district, may apply to the commissioner of education for a grant to supplement the planning budget approved under 16  V.S.A. § 706a.

(b)  The commissioner may award $4000 to a planning committee consisting of two school districts and additional $1000 for each additional school district.  However, no planning committee shall receive more than $7000.

(c)  The secretary of administration shall pay a grant awarded under this section upon a warrant issued by the commissioner of education.  Notwithstanding the provisions of subsection 4025(d) of Title 16, funds for this grant shall be drawn from the education fund amounts appropriated to pay for the base education grant and shall not result in the repeal of chapter 135 of Title 32.  The secretary of administration shall submit a request for funds in the annual budget adjustment act to pay for any grants that may have been awarded under this section.

(d)  This section is repealed on June 30, 2006.

(Committee Vote: 4-2-0)

(For House amendments, see House Journal for May 1, 2003, page 907; May 2, 2003, page 911.)

CONFIRMATIONS

     The following appointments will be considered by the Senate, as a group, under suspension of the Rules, as moved by the President pro tempore, for confirmation together and without debate, by consent thereby given by the Senate.  However, upon request of any senator, any appointment may be singled out and acted upon separately by the Senate, with consideration given to the report of the Committee to which the appointment was referred, and with full debate; and further, all appointments for the positions of Secretaries of Agencies, Commissioners of Departments, Judges, Magistrates, and members of the Public Service Board shall be fully and separately acted upon.

Betty M. Ferraro of Rutland – Member of the Transportation Board – By Senator Maynard for the Committee on Transportation.  (4/17/03)

Bill Cimonetti of South Burlington – Member of the Transportation Board – By Senator Mazza for the Committee on Transportation.  (5/6/03)

Elizabeth G. Kennett of Rochester – Member of the Travel Information Council – By Senator Collins for the Committee on Transportation.  (5/6/03)

John O’Kane of Essex Junction – Member of the Public Oversight Commission – By Senator Lyons for the Committee on Health and Welfare.  (5/6/03)

David Yacovone of Morrisville – Member of the Public Oversight Commission – By Senator Lyons for the Committee on Health and Welfare.  (5/6/03)

Lynne Von Trapp of Stowe – Member of the Children & Family Council for Prevention Programs – By Senator Lyons for the Committee on Health and Welfare.  (5/6/03)

Jane Findlay of Brattleboro – Member of the Children & Family Council for Prevention Programs – By Senator White for the Committee on Health and Welfare.  (5/6/03)

Sharon L. Nicol of Sutton – Member of the Board of Medical Practice – By Senator White for the Committee on Health and Welfare.  (5/6/03)

William Brooks of New Haven – Member of the Human Services Board – By Senator White for the Committee on Health and Welfare.  (5/6/03)

Nancy Rowden Brock of Waterbury Center – Member of the Public Oversight Commission – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

Paul Winauski of Waterbury – Member of the Children & Family Council for Prevention Programs – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

Stewart Smith of South Burlington – Member of the Children & Family Council for Prevention Programs – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

Kent Stoneman of Barre – Member of the Children & Family Council for Prevention Programs – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

John P. Castaldo of Waterbury Center – Member of the Public Oversight Commission – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

Mark Moody of Montpelier – Member of the Children & Family Council for Prevention Programs – By Senator Doyle for the Committee on Health and Welfare.  (5/6/03)

John B. Webber of Rutland – Member of the Board of Medical Practice – By Senator Leddy for the Committee on Health and Welfare.  (5/6/03)

Margaret Funk Martin of Middlebury – Member of the Board of Medical Practice – By Senator Leddy for the Committee on Health and Welfare.  (5/6/03)

Madelaine Glassberg of Waltham – Member of the Children & Family Council for Prevention Programs – By Senator Leddy for the Committee on Health and Welfare.  (5/6/03)

Heather A. Radtke of Burlington – Member of the Children & Family Council for Prevention Programs – By Senator Munt for the Committee on Health and Welfare.  (5/6/03)

Thomas Crowley of South Burlington – Member of the State Police Advisory Commission – By Senator Doyle for the Committee on Government Operations.  (5/13/03)

Bethany Knight of Glover – Member of the Pubic Oversight Commission – By Senator Doyle for the Committee on Health and Welfare.  (5/13/03)