Journal of the Senate

________________

Tuesday, May 13, 2003

The Senate was called to order by the President pro tempore.

Devotional Exercises

A moment of silence was observed in lieu of devotions.

Proposal of Amendment; Consideration Postponed

H. 162.

House bill entitled:

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

Was taken up.

Thereupon, pending third reading of the bill, 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,”

Thereupon, pending the question, Shall the Senate propose to the House to amend the bill as recommended by Senator Bloomer?, Senator Cummings moved that consideration on the bill be postponed.

Which was agreed to.

Proposals of Amendment; Third Reading Ordered

H. 458.

Senator Mullin, for the Committee on Government Operations, to which was referred House bill entitled:

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

Reported recommending 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 out the word “seven” and in the third sentence, after the following: “Vermont Interactive Television”, by inserting the following: Vermont Technical College

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

And that the bill ought to pass in concurrence with such proposals of amendment.

Senator Gossens for the Committee on Appropriations to which the bill was referred, reported recommending that the bill ought to pass in concurrence with proposals of amendment.

Thereupon, the bill was read the second time by title only pursuant to Rule 43, the proposals of amendment were collectively agreed to, and third reading of the bill was ordered.

Consideration Postponed

S. 15.

Senate bill entitled:

An act relating to a juvenile justice legislative oversight committee.

Was taken up.

Thereupon, without objection consideration of the bill was postponed until the next legislative day.

Bill Passed

Senate bill of the following title was read the third time and passed:

S. 23.

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

Report of Committee of Conference Accepted and Adopted on the Part of the Senate

H. 28.

Senator White, for the Committee of Conference, submitted the following report:

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:

An act relating to a Vermont Amber alert program.

Respectfully reports that it has met and considered the same and recommends 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 E. CUMMINGS

                                                                        WILLIAM T. DOYLE

                                                                        JEANETTE K. WHITE

                                                                 Committee on the part of the Senate

                                                                        DONNA SWEANEY

                                                                        SARAH R. EDWARDS

                                                                        DAVID BOLDUC

                                                                 Committee on the part of the House

Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference?, was decided in the affirmative.

Joint Resolution Adopted on the Part of the Senate

J.R.S. 33.

Joint Senate resolution entitled:

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

Having been placed on the Calendar for action, was taken up and adopted on the part of the Senate.

Joint Resolution Adopted in Concurrence

J.R.H. 18.

Joint House resolution entitled:

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.

Having been placed on the Calendar for action, was taken up and adopted in concurrence.

Third Reading Ordered

H. 324.

Senator Collins, for the Committee on Transportation, to which was referred House bill entitled:

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

Reported that the bill ought to pass in concurrence.

Thereupon, the bill was read the second time by title only pursuant to Rule 43, and third reading of the bill was ordered.

Proposal of Amendment; Third Reading Ordered

H. 19.

Senator Campbell, for the Committee on Judiciary, to which was referred House bill entitled:

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

Reported recommending 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.

And that the bill ought to pass in concurrence with such proposal of amendment.

Thereupon, the bill was read the second time by title only pursuant to Rule 43, the proposal of amendment was agreed to, and third reading of the bill was ordered.

Bill Amended; Bill Passed

S. 42.

Senate bill entitled:

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

Was taken up.

Thereupon, pending third reading of the bill, Senate. Miller, on behalf of the Committee on Economic Development, Housing and General Affairs, moved to amend the bill as follows:

First:  In Sec. 3, 10  V.S.A. § 6615a, in subdivision (l)(3), after the word “participation” by striking out the word “by” and inserting in lieu thereof the word in

Second:  In, Sec. 3, 10 V.S.A. § 6615a, after the “* * *” that follow subdivision (l)(5)(E), by adding the following:

(6) Loans.

* * *

(G) Contractual authority; reports

* * *

(ii) Annually, by January 15, the secretary of commerce and community development and VEDA, in consultation with the secretary of natural resources, shall submit a report to members of the joint fiscal committee, the senate committees on economic development, housing, and general affairs and on natural resources and energy, and the house committees on commerce and on natural resources setting out the balance of the fund created under this section, grant and loan awards made to date, funds anticipated to be made available in the coming year , information relating to brownfield remediation activities, including the number, location, and status of brownfield sites,  and any other matters of interest.

* * *

Third:   By renumbering Sec. 4 as Sec. 3. and Sec. 5 as Sec. 4 and by adding a new Sec. 5. to read as follows:

Sec. 5.  Sec. 7 of  No. 44 of the Acts of 1995, as amended in Sec. 1 of No. 14 of the Acts of 2001, is amended to read:

Sec. 7  APPLICATION DEADLINE

Applications to participate in the program established under 10 V.S.A. §6615a shall not be accepted after July 1, 2006 2008.

Which was agreed to.

Thereupon, the bill was read the third time and passed.

Proposal of Amendment; Consideration Postponed

H. 128.

House bill entitled:

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

Was taken up.

Thereupon, pending third reading of the bill, Senator Leddy, on behalf of the Committee on Health and Welfare, moved that the Senate propose to the House to amend the bill as follows:

First:  In Sec. 3, 18 V.S.A. § 9405(b)(1)(C), by inserting after the second reference to “subdivision (1),” the following: options for implementing such guidelines

Second:  In Sec. 4, 18 V.S.A. § 9405a, by striking out the first sentence and inserting in lieu thereof the following: On or before January 1, 2005, each hospital shall conduct a four-year community needs assessment.

Third:  In Sec. 4, 18 V.S.A. § 9405a, by inserting a new final sentence to read as follows: In addition, each hospital shall develop a mechanism for receiving ongoing public comment regarding the community needs assessment and for revising it biannually, as needed.

Fourth:  In Sec. 5, 18 V.S.A. § 9405b(a)(1), by striking out the following: “and outcomes” and inserting in lieu thereof the following: , including process and outcome measures,

Fifth:  In Sec. 9, 18 V.S.A. § 9432(7)(B), by striking out the following: “assisted living facilities,”

Sixth:  In Sec. 10, 18 V.S.A. 9434(d), after the following: “subdivision (c)(1)” by striking out the following: or (2)

Seventh:  In Sec. 24, 18 V.S.A. § 9456(h)(2), by inserting a new final sentence to read as follows: This subdivision shall not apply to violations of subsection (d) of this section caused by exceptional or unforeseen circumstances.

Eighth:  In Sec. 27, subdivision (2), by striking out the following: “Sec. 18” and inserting in lieu thereof the following: Secs. 16, 17 and 21 and by striking out the following: “July 1, 2003” and inserting in lieu thereof the following: the date of passage

Ninth:  In Sec. 27, subdivision (3), after the following: “July 1, 2005” by inserting the following: or upon adoption by the governor of the health resource allocation plan, whichever occurs first

Tenth:  In Sec. 27, subdivision (4), by striking out the following: “This” and inserting in lieu thereof the following: Except for Secs. 16, 17, and 21, this

Which was agreed to.

Thereupon, pending third reading of the bill, Senators Bloomer and Welch moved that the Senate propose to the House to amend the bill in Sec. 15, 18 V.S.A. § 9440, by striking out subsection (e) in its entirety and inserting in lieu thereof a new subsection (e) to read as follows:

(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 decision shall include a certification that the commissioner fully considered all findings of the public oversight commission and an explanation of why the commissioner did not accept the recommendation of the public oversight commission.

Thereupon, pending the question, Shall the Senate propose to the House to amend the bill as recommended by Senators Bloomer and Welch?, Senator Bloomer moved to postpone consideration of the bill.

Which was agreed to.

Bill Passed in Concurrence with Proposals of Amendment

H. 175.

House bill of the following title was read the third time and passed in concurrence with proposals of amendment:

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

Rules Suspended; Bills Messaged

On motion of Senator Mazza, the rules were suspended, and the following bills were ordered messaged to the House forthwith:

S. 23; S. 42; H. 28; H. 175.

Appointments Confirmed

Under suspension of the rules (and particularly, Senate Rule 93), as moved by Senator Mazza, the following Gubernatorial appointments were confirmed together as a group by the Senate, without reports given by the Committees to which they were referred and without debate:

     Betty M. Ferraro of Rutland – Member of the Transportation Board – March 7, 2003, to February 28, 2006.

     Bill Cimonetti of South Burlington – Member of the Transportation Board – March 18, 2003, to February 28, 2006.

     Elizabeth G. Kennett of Rochester – Member of the Travel Information Council – July 8, 2002, to February 28, 2004.

     John O’Kane of Essex Junction – Member of the Public Oversight Commission – April 25, 2003, to July 25, 2004.

     David Yacovone of Morrisville – Member of the Public Oversight Commission – July 26, 2002, to July 25, 2005.

     Lynne Von Trapp of Stowe – Member of the Children and Family Council for Prevention Programs – October 1, 2002, to September 30, 2005.

     Jane Findlay of Brattleboro – Member of the Children and Family Council for Prevention Programs – December 6, 2002, to September 30, 2005.

     Sharon L. Nicol of Sutton – Member of the Board of Medical Practice – September 20, 2002, to December 31, 2006.

     William Brooks of New Haven – Member of the Human Services Board – December 20, 2002, to February 28, 2003.

     Nancy Rowden Brock of Waterbury Center – member of the Public Oversight Commission – July 26, 20 02, to July 25, 2005.

     Paul Winauski of Waterbury – Member of the Children and Family Council for Prevention Programs – October 1, 2002, to September 30, 2005.

     Stewart Smith of South Burlington – Member of the Children and Family Council for Prevention Programs – October 1, 2002, to September 30, 2005.

     Kent Stoneman of Barre – Member of the Children and Family Council for Prevention Programs – October 1, 2002, to September 30, 2005.

     John P. Castaldo of Waterbury Center – Member of the Public Oversight Commission – July 26, 2002, to July 25, 2004.

     Mark Moody of Montpelier – Member of the Children and Family Council for Prevention Programs – October 1, 2002, to September 30, 2005.

     John B. Webber of Rutland – Member of the Board of Medical Practice – September 20, 2002, to December 31, 2006.

     Margaret Funk Martin of Middlebury – Member of the Board of Medical Practice – September 20, 2002, to December 31, 2006.

     Madelaine Glassberg of Waltham – Member of the Children and Family Council for Prevention Programs – July 19, 2002, to September 30, 2004.

     Heather A. Radtke of Burlington – Member of the Children and Family Council for Prevention Programs – July 19, 2002, to September 30, 2004.

     Thomas Crowley of South Burlington – Member of the State Police Advisory Commission– March 31, 2003, to June 30, 2004.

     Bethany Knight of Glover – Member of the Public Oversight Commission – April 30, 2003, to July 25, 2005.

Message from the House No. 58

     A message was received from the House of Representatives by Mr. Palmisano, its First Assistant Clerk, as follows:

Mr. President:

     I am directed to inform the Senate the House has considered Senate proposal of amendment to House bill of the following title:

     H. 457.  An act relating to capital construction, state bonding, and the Department of Corrections

And has refused to concur therein and asks for a Committee of Conference upon the disagreeing votes of the two Houses;

And the Speaker has appointed as members of such Committee on the part of the House

                                         Rep. Wood of Brandon

                                         Rep. Pillsbury of Brattleboro

                                         Rep. Allard of St. Albans

Pursuant to the request of the Senate for a Committee of Conference upon the disagreeing votes of the two Houses on Senate bill of the following title:

S. 93.  An act relating to mandatory reporting of suspected child abuse and neglect.

The Speaker has appointed as members of such committee on the part of the House

                                         Rep. Grad of Moretown

                                         Rep. Flory of  Pittsford

                                         Rep. Lippert of Hinesburg

Adjournment

On motion of Senator Mazza, the Senate adjourned until one o’clock in the afternoon.

Afternoon

     The Senate was called to order by the President pro tempore.

Message from the House No. 59

     A message was received from the House of Representatives by Mr. MaGill, its Second Assistant Clerk, as follows:

Mr. President:

     I am directed to inform the Senate the House has passed bills of the following titles:

H. 86.  An act relating to exempting certain farm trucks from general registration fees.

H. 141.  An act relating to Vermont higher education investment plan income tax credit.

In the passage of which the concurrence of the Senate is requested.

The House has considered Senate proposals of amendment to House bills of the following titles:

H. 433.  An act relating to the charter of the town of Brattleboro.

H. 477.  An act relating to clarification and updating of certain provision of education law.

And has severally concurred therein.

The House has considered Senate proposal of amendment to House bill of the following title:

     H. 206.  An act relating to selling or dispensing illegal drugs.

And has refused to concur therein and asks for a Committee of Conference upon the disagreeing votes of the two Houses;

And the Speaker has appointed as members of such committee on the part of the House

                                         Rep. Flory of Pittsford

                                         Rep. Grad of Moretown

                                         Rep. Kainen of Hartford

The House has adopted a Joint Resolution of the following title:

J.R.H. 20.  Joint resolution designating the first week of May 2003 as public service recognition week in Vermont.

In the adoption of which the concurrence of the Senate is requested.

The House has considered Senate bills of the following titles:

S. 85.  An act relating to the retirement board of the Vermont employees’ retirement system..

S. 171.  An act relating to delivery of forfeited motor vehicles to the commissioner of buildings and general services.

And has passed the same in concurrence.

The House has considered a bill originating in the Senate of the following title:

S. 16.  An act relating to elimination of the sunset on assistant judges’ authority to hear small claims cases.

And has passed the same in concurrence with proposal of amendment in the adoption of which the concurrence of the Senate is requested.

Message from the Governor

A message was received from His Excellency, the Governor, by Neale Lunderville, Secretary of Civil and Military Affairs, as follows:

Mr. President:

I am directed by the Governor to inform the Senate that on the thirteenth day of May, 2003, he approved and signed a bill originating in the Senate of the following title:

S. 125.  An act relating to charitable gifts of life insurance and bylaws of cooperative insurance corporations.

Bills Referred

House bills of the following titles were severally read the first time and referred:

H. 86.

An act relating to exempting certain farm trucks from general registration fees.

To the Committee on Transportation.

H. 141.

An act relating to Vermont higher education investment plan income tax credit.

To the Committee on Finance.

Joint Resolution Placed on Calendar

J.R.H. 20.

Joint resolution originating in the House of the following title was read the first time and is as follows:

Joint resolution designating the first week of May 2003 as Public Service Recognition Week in Vermont.

Whereas, since 1985, the first week of May has been celebrated as Public Service Recognition Week in honor of the men and women who serve the United States as federal, state, and local government employees, and

Whereas, Congress and President Bush have designated Public Service Recognition Week to educate citizens concerning the essential nature of the services which public employees perform and provide the citizenry, and

Whereas, public employees serve Vermonters every day, and our citizens have consistently endorsed the quality and accessibility of Vermont’s public services, and

Whereas, public sector employees maintain our roads and bridges; deliver essential services to families, the elderly, veterans, persons with disabilities, and other Vermonters in need; ensure quality education for our children; preserve our natural environment and historic heritage; guarantee the public safety through law enforcement activities and emergency response services; promote economic development, including assisting Vermonters in finding jobs and improving their employment skills; safeguard our public health; and care for the most vulnerable in our society, and

Whereas, without dedicated civil servants, there would not be any continuity of governmental services when changes occur within the elected leadership structures of our democracy, and

Whereas, recognition of governmental employees encourages more persons to consider public service as an honorable career choice, now therefore be it

Resolved by the Senate and House of Representatives:

That the General Assembly is pleased to recognize the dedication and outstanding contributions of all Vermont’s federal, state, and municipal employees on behalf of the citizens of Vermont, and be it further

Resolved:  That the General Assembly designates the first week of May 2003 as Public Service Recognition Week in Vermont, and be it further

Resolved:  That the Secretary of State be directed to send a copy of this resolution to Governor James Douglas, the Vermont State Employees Association, the Vermont NEA, and the Vermont AFL-CIO as the representatives of these dedicated public servants.

Thereupon, in the discretion of the President pro tempore, under Rule 51, the joint resolution was placed on the Calendar for action tomorrow.

Proposal of Amendment; Bill Passed in Concurrence with Proposals of Amendment; Bill Messaged

H. 480.

House bill entitled:

An act relating to education funding.

Was taken up.

Thereupon, pending third reading of the bill, Senators Condos and Sears moved that the Senate proposal of amendment be amended by striking out Sec. 62 in its entirety and inserting in lieu thereof a new Sec. 62 to read as follows:

Sec. 62.  24 V.S.A. § 138(a) is 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;

(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, and all authority to impose a local option tax shall terminate on December 31, 2004; and

(3)  a local option tax may only be adopted by a municipality in which:

(A)  the education property tax rate in 1997 was less than $1.10 per $100.00 of equalized education property value; or

(B)  the equalized grand list value of personal property, business machinery, inventory, and equipment is at least ten percent of the equalized education grand list as reported in the 1998 Annual Report of the Division of Property Valuation and Review; or

(C)  the combined education tax rate of the municipality will increase by 20 percent or more in fiscal year 1999 or in fiscal year 2000 over the rate of the combined education property tax in the previous fiscal year For any municipality which imposes a local option tax under this section, the tax shall be effective beginning with the next tax quarter following 30 days’ notice to the department of taxes of the imposition. 

Which was agreed on a roll call, Yeas 23, Nays 6.

Senator Canns having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Bloomer, Campbell, Collins, Condos, Cummings, Doyle, Dunne, Gander, Gossens, Greenwood, Illuzzi, Kittell, Leddy, Lyons, Maynard, Miller, Munt, Scott, Sears, Snelling, White.

Those Senators who voted in the negative were: Canns, MacDonald, Mayo, Mazza, Mullin, Shepard.

The Senator absent or not voting was: Welch (presiding).

Thereupon, pending third reading of the bill, Senators Bloomer and Greenwood moved that the Senate proposal of amendment be amended in Sec. 5, in 32  V.S.A. § 5410(g), by striking out the following: “eight percent” and inserting in lieu thereof the following: three percent if the municipality’s nonresidential tax rate is higher than the municipality’s homestead tax rate for the tax year to which the declaration pertains, or in any other case shall assess the taxpayer a penalty in an amount equal to eight percent,

Which was agreed to.

Thereupon, pending third reading of the bill, Senator Greenwood moved that the Senate proposal of amendment be amended by inserting a new section to be numbered Sec. 72i to read as follows:

Sec. 72i.  TRANSITION TAX RATES

Beginning in fiscal year 2005, a manufacturing business with at least 1000 full-time-equivalent employees at two or fewer business locations in this state in fiscal year 2003, shall, in any municipality in which the combined statewide and local share education property tax rate in fiscal year 2003 was $1.45 or less, be subject to education property tax under 32 V.S.A. § 5402(a)(1) at a rate equal to its 2003 education tax rate plus $0.04 for each year after 2004; until fiscal year 2008, at which time it shall be subject to education property tax in that municipality under section 5402(a)(1) at the rate provided in that subsection.

Which was agreed to on a roll call, Yeas 25, Nays 3.

Senator Greenwood having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Bloomer, Campbell, Canns, Collins, Cummings, Doyle, Gander, Gossens, Greenwood, Illuzzi, Kittell, Lyons, MacDonald, Maynard, Mayo, Mazza, Miller, Mullin, Scott, Sears, Shepard, Snelling, White.

Those Senators who voted in the negative were: Condos, Leddy, Munt.

Those Senators absent or not voting were: Dunne, Welch (presiding).

Thereupon, pending third reading of the bill, Senator Bloomer moved that the Senate proposal of amendment be amended as follows:

First:  In Sec. 1, in 16 V.S.A. §428, by striking out subsection (a) in its entirety and by inserting in lieu thereof a new subsection (a) to read as follows:

(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.  However, if in any school year the budget proposed by the school district is no more than the amount of the budget adopted by the district in the previous school year increased by the most recent cumulative price index used in section 4011(b) of this title plus one half of one percent, then no vote shall be required of the electorate and the proposed budget in that amount shall be deemed adopted by the electorate under this section.  If in any school year the budget proposed by the school district exceeds the amount of the budget adopted by the district in the previous school year increased by the most recent cumulative price index used in section 4011(b) of this tile plus one half of one percent, then the vote of the electorate required for adoption of the budget under this section shall be by a majority of no less than sixty percent of those present and voting.

Second:  In Sec. 2, in 16 V.S.A. §511, by striking out subsection (a) in its entirety and by inserting in lieu thereof a new subsection (a) to read as follows:

(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.  However, if in any school year the budget proposed by the incorporated school is no more than the amount of the budget adopted by the incorporated school in the previous school year increased by the most recent cumulative price index used in section 4011(b) of this title plus one half of one percent, then no vote shall be required of the electorate and the proposed budget in that amount shall be deemed adopted by the electorate under this section.  If in any school year the budget proposed by the incorporated school exceeds the amount of the budget adopted by the incorporated school in the previous school year increased by the most recent cumulative price index used in section 4011(b) of this tile plus one half of one percent, then the vote of the electorate required for adoption of the budget under this section shall be by a majority of no less than sixty percent of those present and voting.

Thereupon, pending the question, Shall Senate proposal of amendment be amended as recommended by Senator Bloomer?, Senator Bloomer requested and was granted leave to withdraw the proposal of amendment.

Thereupon, pending third reading of the bill, Senators Bloomer and Greenwood moved that the Senate proposal of amendment be amended in Sec. 36, 32 V.S.A., §9602 by striking out the figure “$100,000.00” wherever it appears and inserting in lieu thereof the figure $125,000.00

Which was agreed to on a roll call, Yeas 19, No 10.

Senator Bloomer having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Bartlett, Bloomer, Campbell, Canns, Collins, Doyle, Dunne, Gossens, Greenwood, Illuzzi, Kittell, Leddy, Maynard, Mayo, Miller, Mullin, Scott, Shepard, Snelling.

Those Senators who voted in the negative were: Ayer, Condos, Cummings, Gander, Lyons, MacDonald, Mazza, Munt, Sears, White.

The Senator absent or not voting was: Welch (presiding).

Thereupon, pending third reading of the bill, Senator Bloomer moved that the Senate proposal of amendment be amended by adding a new section to be numbered Sec. 25a to read as follows:

Sec. 25a.  TEACHER NEGOTIATIONS; SUPERVISORY UNION LEVEL; APPROPRIATION

(a)  The board of a supervisory union in which the member boards are not jointly negotiating teacher contracts may apply to the commissioner of education for a grant to work with its member districts to enter into an agreement to do so.

(b)  The commissioner is authorized to award one grant of up to $5000.00 to each supervisory union board which applies for a grant under this section.

(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.

Which was agreed to.

Senator Mazza Assumes the Chair

Thereupon, pending third reading of the bill, Senator Shepard moved that the Senate proposal of amendment be amended by adding a new section to be numbered Sec. 72i to read as follows:

Sec. 72i.  STATE FUNDING OF CORE EDUCATIONAL PROGRAMS; STUDY

(a)  The general assembly finds that:

(1)  Since 1997 education funding in the State of Vermont must comply with the Brigham decision.

(2)  The Brigham decision states “…the right to education is so integral to our constitutional form of government, and its guarantees of political and civil rights.”

(3)  Given that all life experiences are educational and the Brigham decision speaks of “the right to education,” the court left it to the legislature to define the education which would satisfy Brigham.

(4)  For state government to raise reliably the funds needed for a program, the program must be defined.  Sustainable funding requires definition.

(b)  The general assembly further finds that:

(1)  In the Brigham context, “political and civil rights” is used to mean that children have the right to an education which will give them substantially equal access to the tools needed to participate in the civil and political arenas.

(2)  For the purposes of this section, this scope of education is referred to as “core education.”

(3)  Using Brigham, if a particular educational program is a right, that program must be available to every student.  If our current system complies with Brigham, only those programs of education which are universally available throughout the state can possibly fall under the Brigham definition of education.  Educational programs that do not have substantially equal access throughout the state are not a right under Brigham.  The state is not obligated to fund, under Brigham, programs that are not a right under Brigham.

(4)  For the purposes of this bill, core education consists of the educational curriculum that would be considered a right under Brigham.  Core education is that education that will give citizens the tools most necessary to participate in the civil and political arenas.  Core education is necessary for the purposes of preparing our children for success in life, ensuring maximum predictability and sustainability of education funding, controlling the cost of public funding of education, and protecting and maximizing local and parental input and control in the education of our youth.

(c)  Therefore, in order to insure a healthy and prosperous future for Vermont, the general assembly recognizes that:

(1)  Vermonters need an education which equips our citizens with the tools needed to participate in our civil and political arenas as necessary to ensure freedom and prosperity in our republic.

(2)  It is in the best interest of Vermont to have a system of education which provides the tools needed for each citizen to participate and prosper in our civil and political arenas.

(3)  All of life’s experiences are education; however, there are certain subjects which are essential in the preparation for participation in the civil and political arenas.  The state is committed to providing substantially equal access for students in grades K-12 to these subjects.

(4)  Education in the early years is particularly effective.

(5)  The need to define critical subjects is for the following:

(A)  to improve education quality in the areas most important for lifelong success and prosperity;

(B)  to identify what it is that the state is funding so adequate financial resources can be raised and allocated.  The state cannot reliably fund an ill‑defined program.

(d)  There is created a legislative study committee on core education.  The committee shall consist of three members of the senate chosen by the committee on committees and three members of the house chosen by the speaker.  The committee may meet up to six times, shall receive per diem and expenses pursuant to 2  V.S.A. § 406, and shall receive staff services from the legislative council and the joint fiscal office.  The committee shall, following input from the education community, the business community and parents, develop a definition of  a “core education” which will equip citizens with tools needed to participate in our civil and political arenas”.

(e)  On or before January 15, 2004, the committee shall report its definition of core education to the Senate committee on finance and the House committee on ways and means and the Senate and House committees education. 

Which was disagreed to.

Thereupon, pending third reading of the bill, Senator Shepard moved that the Senate proposal of amendment be amended by adding a new section to be numbered Sec. 72j to read as follows:

Sec. 72j.  SOUTHWEST VERMONT CAREER DEVELOPMENT CENTER; TUITION CHARGES TO NEW YORK STUDENTS IN THE BENNINGTON REGIONAL LABOR MARKET

Notwithstanding 16 V.S.A. § 1552, the Southwest Vermont Career Development Center may charge a student from New York who resides within the Bennington regional labor market the same amount that it charges the sending district for a student who is a resident of Vermont.

Thereupon, pending the question, Shall the Senate proposal of amendment be amended as recommended by Senator Shepard?, Senator Shepard requested and was granted leave to substitute the following language for the proposal of amendment:

Sec. 72j.  SOUTHWEST VERMONT CAREER DEVELOPMENT CENTER; TUITION CHARGES TO NEW YORK STUDENTS IN THE BENNINGTON REGIONAL LABOR MARKET

Notwithstanding 16 V.S.A. § 1552, the Southwest Vermont Career Development Center may charge a student from New York who resides within the Bennington regional labor market the same amount that it charges the sending district for a student who is a resident of Vermont, provided the additional costs resulting therefrom shall not exceed the revenue so generated.

Thereupon, the pending question, Shall the Senate proposal of amendment be amended as recommended by Senator Shepard, as substituted?, was decided in the negative on a division of the Senate, Yeas 14, Nays 14.

There being a tie, the Secretary took the casting vote of the presiding officer, who voted “Nay”.

Thereupon, pending third reading of the bill, Senator Shepard moved that the Senate proposal of amendment be amended by adding two new sections to be numbered Secs. 72k and 72l to read as follows:

Sec. 72k.  32 V.S.A. § 1674 is amended to read:

§ 1674.  COLLECTOR OF TAXES’ FEES

The fees of collectors of taxes shall be as follows:

(1)  Where a municipality does not vote to collect its taxes by its treasurer, the collector shall not tax or collect of the taxpayer any commission or fees on taxes paid within the time established in the notice required by section 4772 of this title;

(2)  On all taxes collected after the expiration of the time established in the notice required by section 4772 or 4792 of this title, the collector shall be allowed to charge and collect from the taxpayer a commission of one-half percent per business day on which the treasurer’s office is open, up to a maximum of eight per cent, on the amount of the tax;

(3)  Whenever it is necessary to levy on persons or personal estate, the collector shall be allowed to tax and collect from the taxpayer, as further compensation, such fees as sheriffs are allowed for levying executions.

Sec. 72l.  EFFECTIVE DATE

Sec. 72k of this act shall apply to taxes due on and after January 1, 2003.

Thereupon, pending the point of order raised by Senator Canns on germaneness of the proposal of amendment, Senator Shepard requested and was granted leave to withdrawn the proposal of amendment.

Thereupon, pending third reading of the bill, Senator Shepard and moved that the Senate proposal of amendment be amended by inserting a new section to be numbered Sec. 45j to read as follows:

Sec. 45j.  SOCIAL SERVICES COSTS IN EDUCATION SPENDING

To aid in identifying the needs and costs of providing social services through the public school system, the commissioner of education and the secretary of human services shall, by December 1, 2003, report to the general assembly an accounting of the items and the cost of those items in education spending in this state which consist mainly of social services provided through the school system such as special education, low-income meals programs, health education, counseling, and similar social services; and the items in education spending which consist mainly of academic and technical training.  This accounting shall be based upon the most recent fiscal year costs available, and shall not include costs of buildings, maintenance or maintenance staff, but shall include employee compensation and benefits for other school staff.

Which was disagreed to.

Thereupon, pending third reading of the bill, Senator Welch, on behalf of the Committee on Finance, moved that the Senate proposal of amendment be amended as follows:

First:  By inserting a new section to be numbered Sec. 36f to read as follows:

Sec. 36f.  32 V.S.A. § 5822a is added to read:

§ 5822a  INCOME TAX SURCHARGE

In addition to the amount of tax determined under section 5822 of this title, there is imposed upon the taxable income earned or received in that year by every individual, estate and trust, subject to income taxation under the laws of the United States, a surcharge in the amount of one and one-half percent of the taxpayer’s Vermont income tax liability for the taxable year.

Second:  By inserting a new section to be numbered Sec. 36g to read as follows:

Sec. 36g.  32  V.S.A. §5884 is amended to read:

§ 5884. REFUNDS; PETITIONS FOR REFUNDS

* * *

(b) If the commissioner determines, on a petition for refund with respect to a timely filed return or otherwise, that a taxpayer has paid an amount of tax under this chapter which, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the state, with respect to the current and all preceding taxable years, under any provision of this title, the commissioner shall forthwith refund the excess amount to the taxpayer together with interest at the rate per annum established from time to time by the commissioner pursuant to section 3108 of this title. That interest shall be computed from forty-five days after the date the return was filed or from forty-five days after the date the return was due, including any extensions of time thereto, with respect to which the excess payment was made, whichever is the later date.

(c)  Notwithstanding subsection (b) of this section, in the case of a refund claimed on a return which is filed after the last date prescribed for filing such return, including any extensions of time thereto, or claimed on an amended return, the interest on the excess amount to be refunded by the commissioner to the taxpayer shall be computed from forty-five days after the date the late or amended return is filed.

Third:   In Sec. 73 [Effective dates], by inserting two new subsections to be numbered  (21) and (22) to read as follows:

(21)  Sec. 36f of this act, adding 32  V.S.A. §5822a imposing an income tax surcharge of one and one-half percent of income tax liability, shall take effect for taxable years beginning after December 31, 2003, and shall terminate for taxable years beginning after December 31, 2007.  If the emergency board, pursuant to 32 VSA § 305a, adopts an official state revenue forecast at its July 2003 meeting of $887,500,000.00 or greater for the general fund, without the revenue from the income tax surcharge imposed in 32 VSA §5822a by Section 36b of this act, that income tax surcharge shall not take effect.

(22)   Sec. 36g of this act, relating to interest payments on income tax refunds, shall take effect July 1, 2003.

Thereupon, pending the question, Shall the Senate proposal of amendment be amended as recommended by Senator Welch on behalf of the Committee on Finance?, Senator Mullin raised a point of order under Sec. 402 of Mason’s Manual of Legislative Procedure on the ground that the proposal of amendment offered by Senator Welch on behalf of the Committee on Finance, was not germane to the bill and therefore could not be considered by the Senate.

The presiding officer overruled the point of order and ruled that the proposal of amendment, to raise revenue by a broad-based tax (an income tax surcharge), was germane in that the bill as it came to the Senate raised revenue by a board-based tax (an increase in the sales tax).  Therefore, the proposal of amendment was germane and could be considered by the Senate.

Thereupon, the pending question, Shall the Senate proposal of amendment be amended as recommended by Senator Welch, on behalf of the Committee on Finance?, was decided in the affirmative on a roll call, Yeas 21, Nays 8.

Senator Mullin having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Canns, Collins, Condos, Cummings, Dunne, Gander, Gossens, Greenwood, Illuzzi, Kittell, Leddy, Lyons, MacDonald, Miller, Munt, Sears, Welch, White.

Those Senators who voted in the negative were: Bloomer, Doyle, Maynard, Mayo, Mullin, Scott, Shepard, Snelling.

The Senator absent or not voting was: Mazza (presiding).

Thereupon, pending third reading of the bill, Senator Shepard moved that the Senate proposal of amendment be amended as follows:

First:  By adding two new sections to be numbered Secs. 72m and 72n to read as follows:

Sec. 72m.  REPEAL

32 V.S.A. § 5832(2)  (C corporation minimum tax); and 32 V.S.A. § 5915 (S corporation minimum tax); and 32 V.S.A. § 5921 (partnership and limited liability company minimum tax); are repealed for tax years beginning on and after January 1, 2003.

Sec. 72n.  32 V.S.A. § 5837 is amended to read:

§ 5837.  INVESTMENT AND HOLDING COMPANIES

The tax imposed by this subchapter as it applies shall not apply to corporations whose activities are confined to the maintenance and management of their intangible investments and the collection and distribution of the income from such investments or from tangible property physically located outside this state shall not exceed the $150.00 minimum tax provided by section 5832 of this title.  For purposes of this section “intangible investments” shall include without limitation investments in stocks, bonds, notes and other debt obligations (including debt obligations of affiliated corporations), patents, patent applications, copyrights, trademarks, trade names and similar types of intangible assets.

Second:  In Sec. 73 by adding a new subsection (22) to read as follows:

(22)  Secs. 72m and 72n (repeal of business minimum taxes) shall apply to tax years beginning on and after January 1, 2003.

Which was disagreed to on a roll call, Yeas 3, Nays 26.

Senator Shepard having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Mullin, Sears, Shepard.

Those Senators who voted in the negative were: Ayer, Bartlett, Bloomer, Campbell, Canns, Collins, Condos, Cummings, Doyle, Dunne, Gander, Gossens, Greenwood, Illuzzi, Kittell, Leddy, Lyons, MacDonald, Maynard, Mayo, Miller, Munt, Scott, Snelling, Welch, White.

The Senator absent or not voting was: Mazza (presiding).

Thereupon, the bill was read the third time and passed in concurrence with proposals of amendment on a roll call, Yeas 18, Nays 11.

Senator Canns having demanded the yeas and nays, they were taken and are as follows:

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Collins, Condos, Cummings, Dunne, Gander, Gossens, Kittell, Leddy, Lyons, MacDonald, Miller, Munt, Sears, Welch, White.

Those Senators who voted in the negative were: Bloomer, Canns, Doyle, Greenwood, Illuzzi, Maynard, Mayo, Mullin, Scott, Shepard, Snelling.

The Senator absent or not voting was: Mazza (presiding).

Thereupon, on motion of Senator Welch, the rules were suspended and the bill was ordered messaged to the House forthwith.

Committees of Conference Appointed

H. 206.

     An act relating to selling or dispensing illegal drugs.

Was taken up.  Pursuant to the request of the House, Senator Mazza announced the appointment of

                                         Senator Sears

                                         Senator Bloomer

                                         Senator Gossens

as members of the Committee of Conference on the part of the Senate to consider the disagreeing votes of the two Houses.

H. 457.

     An act relating to restructuring the agency of human services.

Was taken up.  Pursuant to the request of the House, Senator Mazza announced the appointment of

                                         Senator Illuzzi

                                         Senator Mazza

                                         Senator Campbell

as members of the Committee of Conference on the part of the Senate to consider the disagreeing votes of the two Houses.

Adjournment

On motion of Senator Welch, the Senate adjourned until ten o’clock in the morning.