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NO. 66.  AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF GOVERNMENT.

(H.464)

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

Sec. 1.  SHORT TITLE

     (a)  This bill may be referred to as the BIG BILL - Fiscal Year 2004 Appropriations Act.

Sec. 2.  PURPOSE

     (a)  The purpose of this act is to provide appropriations for the operations of state government during fiscal year 2004.  It is the express intent of the legislature that activities of the various agencies, departments, divisions, boards, and commissions be limited to those which can be supported by funds appropriated in this act or other acts passed prior to June 30, 2003.  Agency and department heads are directed to implement staffing and service levels at the beginning of fiscal year 2004 so as to meet this condition unless otherwise directed by specific language in this act.

Sec. 3.  APPROPRIATIONS

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

     (b)  Unless codified or otherwise specified, all narrative portions of this act apply only to the fiscal year ending June 30, 2004.

Sec. 4.  TIME AVAILABLE

     (a)  The sums appropriated in this act, unless otherwise designated, shall be available only during the fiscal year ending June 30, 2004.  The balance of any appropriations made in this act remaining unexpended and unencumbered at the end of the fiscal year shall revert to the appropriate fund balance unless otherwise specified in this act.  Refunds of expenditures and reimbursements, except liability insurance premiums, which have been paid from the appropriations of a prior year, shall be credited to the appropriate fund and not to appropriation accounts in the current fiscal year, unless those refunds or reimbursements were previously paid from federal grants-in-aid or from appropriations whose unexpended balances are reappropriated by law.  Refunds of liability insurance premiums paid in prior fiscal years are hereby available to reduce subsequent liability insurance premiums.  Nothing contained in this act shall limit the time within which an appropriation to be raised by the issue of bonds may be expended.

Sec. 5.  DEFINITIONS

     (a)  For the purposes of this act:

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

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

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

          (4)  “Personal services” means wages and salaries, consulting services, personnel benefits, personal injury benefits under 21 V.S.A. § 636 and similar items.

Sec. 6.  Source OF FUNDS

     (a)  The appropriations made in this act are made for the fiscal year ending June 30, 2004 except as provided in this act, and are to be paid from funds shown as the source of funds.

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

                   Personal services                                392,310

                   Operating expenses                              60,902

                        Total                                             453,212

               Source of funds

                   General fund                                       371,337

                   Transportation fund                              61,875

                   Interdepartmental transfer                     20,000

                        Total                                             453,212

     (a)  The secretary of administration shall compile a list of all reports legislatively required of units of state government and, in consultation with the legislative council and the joint fiscal office, submit a proposal to prioritize these requirements. The list and proposal shall be submitted to the house and senate appropriations committees by January 15, 2004.

Sec. 7a.  FEDERAL JOBS AND GROWTH TAX RELIEF

              RECONCILIATION ACT OF 2003 (H.R. 2) FLEXIBLE

              ASSISTANCE

     (a)  The secretary of administration is authorized to accept flexible assistance funds that are available to the state from the federal Tax Reconciliation Legislation (H.R. 2) enacted during the first session of the 108th Congress.  These funds are appropriated in Sec. 168 of this act to the department of corrections-correctional services, in state fiscal year 2004. 

     (b)  The sum of $13,100,000.00 in general funds is hereby appropriated on a one-time basis as follows:

          (1)  To the agency of administration, $6,500,000.00:

(A)  The sum of $2,000,000.00 for the financial management system development special fund (VISION).  Said funds shall be reserved by the secretary for transfer to departments to offset agencies’ general fund obligations to make payments to the fund;

(B)  The sum of $1,500,000.00 for funding for HRMS upgrade and related expenses; and

(C)  The sum of $3,000,000.00 to the facilities operations revolving fund.  Said funds shall be reserved by the secretary for transfer to departments to offset agencies’ general fund obligations to make payments to the fund.

(2)  To the department of public safety, $1,250,000.00 to provide $1,000,000.00 toward the purchase of vehicles and $250,000.00 to fill state police trooper positions.

    (3)  To the agency of human services, $3,600,000.00 as follows:

(A)  The sum of $3,100,000.00 to the department of corrections; $1,600,000.00 for start up expenses of the Springfield prison and $1,500,000.00 for additional beds and housing expenses;

(B)  The sum of $500,000.00 to the department of health; $250,000.00 to support countermarketing undertaken pursuant to 18 V.S.A. Chapter 225  and $250,000.00 for evaluation of tobacco control and cessation programs in the state.

(4)  To the legislature, $750,000.00 to provide funding for a seventeen  week session.

(5)  To the agency of commerce and community development, department of tourism and marketing, $1,000,000.00 for tourism promotion.

The above appropriations shall not be made until the federal funds received in accordance with subsection (a) above equal or exceed $13,100,000.00.  If amounts less than this are received the appropriations in this subsection shall be adjusted accordingly and proportionately.

     (c)  Any remaining general funds derived from the federal flexible assistance funding shall be deposited in the following order:

          (1)  The sum of $11,900,000.00 in the general fund surplus reserve to be available for budget adjustment pressures;

          (2)  Any remaining funds deposited in the general fund budget stabilization reserve until said reserve reaches 5 percent; and

          (3)  In the event that the general fund budget stabilization reserve is fully funded, remaining funds shall be deposited in the general fund surplus reserve.

Sec. 7b.  ONE TIME APPROPRIATION FOR SUNRISE PROFESSIONAL

               REGULATION

     (a)  There is appropriated to the secretary of administration the sum of $20,000.00 from the general fund.  These funds may be transferred to the secretary of state to pay for professional regulation related expenses incurred by the secretary of state in fiscal year 2004 for new profession regulation requests.

Sec. 8.  Information and innovation

                   Personal services                             3,954,911

                   Operating expenses                         3,677,219

                        Total                                          7,632,130

               Source of funds

                   Internal service funds                       7,519,629

                   Interdepartmental transfer                   112,501

                        Total                                          7,632,130

Sec. 9.  Finance and management - financial operations

                   Personal services                             1,676,539

                   Operating expenses                         1,016,119

                        Total                                          2,692,658

               Source of funds

                   Internal service funds                       2,522,208

                   Interdepartmental transfer                   170,450

                        Total                                          2,692,658

Sec. 10.  Finance and management - budget and management

                   Personal services                                832,540

                   Operating expenses                            108,053

                        Total                                             940,593

               Source of funds

                   General fund                                       701,756

                   Transportation fund                            137,467

                   Interdepartmental transfer                   101,370

                        Total                                             940,593

Sec. 11.  Finance and management - education and functional support

                   Personal services                                241,914

                   Operating expenses                              38,300

                        Total                                             280,214

               Source of funds

                   Internal service funds                          280,214

Sec. 12.  AUTHORITY TO CHARGE

     (a)  The commissioner of finance and management is authorized to charge departments for recurrent VISION processing errors, and such charges shall be deposited into the financial management internal service fund.  Prior to any such charge, the department of finance and management shall develop and establish a schedule of charges with an appeal and forgiveness process.  Annually, by September 1, the department of finance and management shall submit to the joint fiscal committee a report on rates established and charges made during the prior fiscal year.

Sec. 13.  Personnel - operations

                   Personal services                             1,453,767

                   Operating expenses                            317,420

                        Total                                          1,771,187

               Source of funds

                   General fund                                    1,044,452

                   Transportation fund                            449,103

                   Interdepartmental transfer                   277,632

                        Total                                          1,771,187

Sec. 14.  Personnel - HR workforce planning & employment services

                   Personal services                                721,354

                   Operating expenses                            288,710

                        Total                                          1,010,064

               Source of funds

                   General fund                                       560,051

                   Transportation fund                            227,013

                    Special funds                                      223,000

                        Total                                          1,010,064

Sec. 15.  Personnel - employee benefits & wellness

                   Personal services                             1,443,061

                   Operating expenses                            276,380

                        Total                                          1,719,441

               Source of funds

                   Internal service funds                       1,719,441

Sec. 16.  Personnel - information technology

                   Personal services                                414,404

                   Operating expenses                            251,900

                        Total                                             666,304

               Source of funds

                   Internal service funds                          666,304

Sec. 17.  Libraries

                   Personal services                             1,637,993

                   Operating expenses                         1,496,621

                   Grants                                                  45,000

                        Total                                          3,179,614

               Source of funds

                   General fund                                    2,232,536

                   Special funds                                      185,745

                   Federal funds                                     615,833

                   Interdepartmental transfer                   145,500

                        Total                                          3,179,614

Sec. 18.  Libraries - special services:  handicapped

                   Personal services                                197,734

                   Operating expenses                              24,413

                        Total                                             222,147

               Source of funds

                   General fund                                         90,209

                   Special funds                                          1,000

                   Federal funds                                     130,938

                        Total                                             222,147

Sec. 19.  Tax - administration/collection

                   Personal services                             9,844,847

                   Operating expenses                         2,117,271

                        Total                                        11,962,118

               Source of funds

                   General fund                                  10,876,798

                   Transportation fund                            263,785

                   Special funds                                      587,535

                   Tobacco fund                                       58,000

                   Interdepartmental transfer                   176,000

                        Total                                        11,962,118

Sec. 20.  Tax - revenue and returns processing

                   Personal services                             1,014,411

                   Operating expenses                            361,100

                        Total                                          1,375,511

               Source of funds

                   General fund                                    1,375,511

Sec. 21.  Buildings and general services - administration

                   Personal services                             1,259,073

                   Operating expenses                            107,905

                        Total                                          1,366,978

               Source of funds

                   Interdepartmental transfer                1,366,978

     (a)  The administration fee charged to each of the other divisions in the department of buildings and general services in Secs. 22 through 35 of this act and transferred to the administration division of the department shall be increased by 13.37 percent above the amount proposed by the administration in fiscal year 2004 budget presentation documents.

     (b)  The commissioner of buildings and general services and the commissioner of corrections shall jointly study the most effective means of preventing repetitive damage and vandalism at correctional facilities.  The commissioners shall jointly report their findings, recommendations and any budget implications to the senate and house committees on appropriations and institutions by January 15, 2004.

Sec. 22.  Buildings and general services - engineering

                   Personal services                             1,700,225

                   Operating expenses                            344,569

                        Total                                          2,044,794

               Source of funds

                   General fund                                    1,702,659

                   Transportation fund                            273,669

                   Interdepartmental transfer                     68,466

                        Total                                          2,044,794

Sec. 23.  Buildings and general services - information centers

                   Personal services                             2,991,677

                   Operating expenses                         1,115,671

                    Grants                                               259,333

                        Total                                          4,366,681

               Source of funds

                   General fund                                       183,731

                   Transportation fund                         4,182,950

                        Total                                          4,366,681

     (a)  Of the above appropriation, $25,000.00 of transportation funds shall be used to offset rent payments at the White River Junction information centers which shall be operated by the eastern Vermont regional marketing organization or the Hartford area chamber of commerce.

Sec. 24.  Buildings and general services - purchasing

                   Personal services                                752,343

                   Operating expenses                            292,707

                        Total                                          1,045,050

               Source of funds

                   General fund                                       778,114

                   Transportation fund                            266,936

                        Total                                          1,045,050

Sec. 25.  Buildings and general services - public records

                   Personal services                                774,193

                   Operating expenses                            423,771

                        Total                                          1,197,964

               Source of funds

                   General fund                                       930,328

                   Transportation fund                              90,003

                   Special funds                                      177,633

                        Total                                          1,197,964

Sec. 26.  Buildings and general services - postal services

                   Personal services                                514,216

                   Operating expenses                            284,201

                        Total                                             798,417

               Source of funds

                   General fund                                         39,933

                   Transportation fund                              26,946

                   Internal service funds                          731,538

                        Total                                             798,417

Sec. 27.  Buildings and general services - copy center

                   Personal services                                720,762

                   Operating expenses                            872,874

                         Total                                          1,593,636

               Source of funds

                   Internal service funds                       1,593,636

Sec. 28.  Buildings and general services - supply center

                   Personal services                                185,994

                   Operating expenses                            308,217

                        Total                                             494,211

               Source of funds

                   Internal service funds                          494,211

Sec. 29.  Buildings and general services - federal surplus property

                   Personal services                                  54,832

                   Operating expenses                            111,191

                        Total                                             166,023

               Source of funds

                   Enterprise funds                                  166,023

Sec. 30.  Buildings and general services - state surplus property

                   Personal services                                  52,229

                   Operating expenses                              58,617

                        Total                                             110,846

               Source of funds

                   Internal service funds                          110,846

     (a)  The commissioner of the department of buildings and general services shall study the feasibility of merging the federal and state surplus property programs.  The commissioner shall report the study results to the house and senate appropriations committees by January 15, 2004.

Sec. 31.  Buildings and general services - property management

                   Personal services                                957,553

                   Operating expenses                         3,274,546

                        Total                                          4,232,099

               Source of funds

                   Internal service funds                       4,232,099

Sec. 32.  Buildings and general services - all other insurance

                   Personal services                                  51,083

                   Operating expenses                              26,463

                        Total                                               77,546

               Source of funds

                   Internal service funds                            77,546

Sec. 33.  Buildings and general services - general liability insurance

                   Personal services                                608,982

                   Operating expenses                            118,512

                        Total                                             727,494

               Source of funds

                   Internal service funds                          727,494

Sec. 34.  Buildings and general services - workers’ compensation insurance

                   Personal services                             1,068,200

                   Operating expenses                            117,812

                        Total                                          1,186,012

               Source of funds

                   Internal service funds                       1,186,012

     (a)  The establishment of six (6) new classified positions – four (4) Nurse Case Manager, one (1) Nurse Case Manager Supervisor and one (1) Administrative Assistant – is authorized in fiscal year 2004.  These positions shall be transferred and converted from existing vacant positions in the executive branch of state government.

     (b)  Prior to hiring the additional nurses funded in this section, the secretary of administration shall review the contractual obligations required of the wellness program to determine whether any of the nursing capacity supporting the wellness program can be assigned to workers’ compensation.

Sec. 35.  Buildings and general services - fee for space

                   Personal services                             8,851,433

                   Operating expenses                         8,383,914

                        Total                                        17,235,347

               Source of funds

                   General fund                                       301,192

                   Internal service funds                     16,934,155

                        Total                                        17,235,347

     (a)  Pursuant to 29 V.S.A. § 160a(b)(3), fee‑for‑space charges of $16,934,155.00 are hereby approved.  The commissioner of buildings and general services shall cause any deficit in the fee‑for‑space internal service fund at the end of fiscal year 2003 to be eliminated by the end of fiscal year 2014 through the aggressive management of expenditures and a surcharge on fees beginning in fiscal year 2005.

     (b)  The establishment of eight (8) new classified positions – three (3) Maintenance Mechanic II, one (1) Custodian II, one (1) Custodian I, one (1) HVAC Specialist, one (1) Propane Specialist, and one (1) Plumber – is authorized in fiscal year 2004.  These positions shall be transferred and converted from existing vacant positions in the executive branch of state government.

Sec. 36.  Geographic information system

                   Grants                                                376,992

               Source of funds

                   Special funds                                      376,992

Sec. 37.  Auditor of accounts

                   Personal services                             1,503,855

                   Operating expenses                            109,150

                        Total                                          1,613,005

               Source of funds

                   General fund                                       445,062

                   Transportation fund                              73,252

                   Special funds                                        52,167

                   Internal service funds                       1,042,524

                        Total                                          1,613,005

Sec. 38.  State treasurer

                   Personal services                             2,237,841

                   Operating expenses                            340,382

                        Total                                          2,578,223

               Source of funds

                   General fund                                       696,913

                   Transportation fund                            128,477

                   Special funds                                   1,701,627

                   Private purpose trust funds                    51,206

                        Total                                          2,578,223

     (a)  The establishment of two (2) new classified positions – one (1) Accountant B and one (1) System Developer II – is authorized in fiscal year 2004.  These positions shall be transferred and converted from existing vacant positions in the executive branch of state government.

Sec. 38a.  FIREFIGHTER SURVIVOR DEATH BENEFIT

                APPROPRIATIONS

     (a)  There is appropriated to the state treasurer the amount of $50,000.00 in general funds to be used for firefighter survivor death benefits in fiscal year 2003.

     (b)  There is appropriated to the state treasurer the amount of $50,000.00 in general funds to be used for firefighter survivor death benefits in fiscal year 2004.

Sec. 38b.  32 V.S.A. § 431 is amended to read: 

§ 431.  DEPOSITORIES OF STATE FUNDS

     (a)  The treasurer, the auditor and the governor shall select the banks in which the funds of the state treasury shall be deposited.  Each agency or department of the state shall be required to obtain the approval of the treasurer to establish and maintain a bank account of a selected bank as well as develop procedures, approved by the treasurer, to reconcile a bank account.  The treasurer shall annually furnish the auditor, on a timely basis, a certified statement from each bank, with which he or she has an account, of the amount of such account.

     (b)  The treasurer is hereby authorized to enter into a pledgee agreement with the federal reserve bank for the purposes of collateralization of account balances through the use of a joint-custody account. The treasurer is authorized to execute the federal reserve bank’s standard form pledgee agreement, including the limitations of liability, limitations of duties and indemnification contained in the pledgee agreement.

Sec. 39.  State treasurer - abandoned property

                   Personal services                                286,952

                   Operating expenses                            157,806

                        Total                                             444,758

               Source of funds

                   Private purpose trust funds                  444,758

Sec. 40.  Vermont state retirement system

                   Personal services                           17,007,758

                   Operating expenses                            665,940

                        Total                                        17,673,698

               Source of funds

                   Pension trust funds                         17,673,698

     (a)  The state treasurer, in consultation with the retirement boards referenced in 3 V.S.A. § 471, 16 V.S.A. § 1942 and 24 V.S.A. § 5062, shall develop a proposal to unitize the assets of the pension funds for the Vermont employees’ retirement system, the state teachers’ retirement system of Vermont, and the municipal employees’ retirement system of Vermont.  The proposal should include an estimate of projected cost savings and a plan for administration and governance of the unitized fund, as well as a schedule for implementation of the proposal.  The proposal shall be submitted to the house and senate committees on appropriations and government operations by January 15, 2004.

     (b)  The state treasurer shall conduct a review of how, and to what degree, other states and governmental entities invest pension fund assets in in-state venture capital funds and other investment opportunities so as to promote economic growth and job creation.

Sec. 41.  Municipal employees’ retirement system

                   Personal services                                904,300

                   Operating expenses                            199,095

                        Total                                          1,103,395

               Source of funds

                   Pension trust funds                           1,103,395

Sec. 42.  State labor relations board

                   Personal services                                145,078

                   Operating expenses                              34,740

                         Total                                             179,818

               Source of funds

                   General fund                                       168,272

                   Transportation fund                                5,676

                   Special funds                                          5,870

                        Total                                             179,818

Sec. 43.  Executive office - Governor’s office

                   Personal services                             1,084,819

                   Operating expenses                            270,574

                   Grants                                                  51,978

                        Total                                          1,407,371

               Source of funds

                   General fund                                    1,090,705

                   Transportation fund                            194,481

                   Special funds                                          3,185

                   Interdepartmental transfer                   119,000

                        Total                                          1,407,371

Sec. 44.  Executive office - national and community service

                   Personal services                                161,890

                   Operating expenses                              95,219

                   Grants                                             1,208,112

                        Total                                          1,465,221

               Source of funds

                   General fund                                         57,000

                   Federal funds                                  1,408,221

                        Total                                          1,465,221

Sec. 45.  VOSHA review board

                   Personal services                                  31,681

                   Operating expenses                                8,619

                        Total                                               40,300

               Source of funds

                   General fund                                         20,150

                   Federal funds                                       20,150

                        Total                                               40,300

Sec. 46.  Use tax reimbursement fund - municipal current use

                   Grants                                             5,700,000

               Source of funds

                   General fund                                    3,389,610

                   Transportation fund                         2,310,390

                        Total                                          5,700,000

Sec. 47.  Lieutenant governor

                   Personal services                                103,049

                   Operating expenses                              15,502

                        Total                                             118,551

               Source of funds

                   General fund                                         94,738

                   Transportation fund                              23,813

                        Total                                             118,551

Sec. 48.  Legislature

                   Personal services                             2,389,401

                   Operating expenses                         2,162,869

                        Total                                          4,552,270

               Source of funds

                   General fund                                    3,684,593

                   Transportation fund                            867,677

                        Total                                          4,552,270

     (a)  Of the above appropriation $50,000.00 shall be used to support the national legislative association on prescription drug pricing. In fiscal year 2005 support for the national legislative association on prescription drug pricing shall be $15,000.00.

Sec. 48a.  APPROPRIATION; LEGISLATURE; 2003 SESSION

(a)  There is appropriated to the legislature from the general fund in fiscal year 2003 the amount of $400,000.00 for costs of the 2003 legislative session incurred after May 17, 2003.

     (b)  After May 24, 2003, for attendance for a day of session or a committee of conference for the remainder of the 2003 legislative session, a member of the house of representatives or the senate shall be entitled to compensation for services and reimbursement of expenses at the daily rate established in sections 1051 and 1052 of Title 32.

Sec. 49.  Legislative council

                   Personal services                             1,722,345

                   Operating expenses                            120,055

                        Total                                          1,842,400

               Source of funds

                   General fund                                    1,553,692

                   Transportation fund                            288,708

                        Total                                          1,842,400

     (a)  The legislative council shall not fill any additional information technology positions in fiscal year 2004 unless approval is given by the committee on joint rules and the legislative technology oversight committee.

Sec. 49a.  LEGISLATIVE COUNCIL; DAIRY COMPACT ACTIVITIES;

                FUNDING

     (a)  There is appropriated to the legislative council from the general fund in fiscal year 2004 the amount of $50,000.00 for the sole purpose of retaining a consultant and supporting activities for the promotion of dairy price enhancement through interstate action.  The consultant shall be retained and associated expenditures made at the direction of the chairs of the senate and house committees on appropriations and the chair and vice chair of the senate and house committees on agriculture, respectively, with the approval of the president pro tem of the senate and the speaker of the house.

Sec. 49b.  STUDY COMMITTEE ON STANDARDS FOR MUNICIPAL

                 LAND RECORDS

(a)  There is created a study committee on developing guidance for the maintenance of municipal land records in the state.  The committee shall consist of:

(1)  one member of the house appointed by the speaker;

(2)  one member of the senate appointed by the committee on committees;

(3)  the state archivist;

(4)  one member appointed by the governor from the department of buildings and general services representing the public records division;

(5)  one member selected by the Vermont bar association;

(6)  one member selected by the Vermont paralegals association;

(7)  three members selected by the Vermont clerks and treasurers association representing towns with different:  populations, grand list sizes, number of land transactions occurring annually, and geographic regions of the state;

(8)  one member selected by the Vermont land surveyors’ association;

(9)  one member selected by the Vermont association of planning and development associations to represent planning commissions;

(10)  one member appointed by the governor to represent title insurers.

(b)  The commission shall review existing practices of recording municipal land records in the state and in other jurisdictions, with the purpose of modernizing the management of Vermont’s municipal land records affecting title to real property.  At a minimum, the commission shall consider the following:

(1)  Developing standards for the content and format of land records affecting title to property in the state.

(2)  Developing standards for the indexing of land records throughout the state.

(3)  Developing technology standards for the automation or computerization of land records.

(4)  Recommending sustainable funding sources to support the modernization, automation, and computerization of land records.

(c)  The organizational meeting shall be called by the state archivist.  The committee may meet up to six times and shall present a report of its recommendations to the general assembly before January 15, 2004.

(d)  Legislative members shall be entitled to compensation and reimbursement of expenses pursuant to section 406 of Title 2.  Members of the commission who are not employees of the state of Vermont shall be entitled to compensation pursuant to section 1010 of Title 32.

     (e)  The sum of $7,500.00 is appropriated from the general fund to the legislative council to accomplish the purposes of this section.

Sec. 50.  Sergeant at arms

                   Personal services                                350,057

                   Operating expenses                              44,788

                        Total                                             394,845

               Source of funds

                   General fund                                       344,540

                   Transportation fund                              50,305

                        Total                                             394,845

     (a)  The establishment of one (1) new exempt position – Security Officer – is authorized in fiscal year 2004.  This position shall be transferred and converted from existing vacant positions in the executive branch of state government.

Sec. 50a.  STATE HOUSE SECURITY

     (a)  A working group on capitol complex security consisting of the commissioner of public safety, the commissioner of buildings and general services, the sergeant at arms, and one member each from the house and senate committees on appropriations and institutions, to be appointed by the speaker of the house and the committee on committees, shall report to the joint rules committee at its September 2003 meeting with recommendations for coordinated security within the state house and capitol complex.

Sec. 50b.  SERGEANT AT ARMS – FISCAL YEAR 2003 BUDGET

                 ADJUSTMENT

     (a)  There is appropriated $61,000.00 from the general fund in fiscal year 2003 to the sergeant at arms for budgetary needs.

Sec. 51.  Joint fiscal committee

                   Personal services                                887,287

                    Operating expenses                              67,933

                        Total                                             955,220

               Source of funds

                   General fund                                       787,920

                   Transportation fund                            167,300

                        Total                                             955,220

Sec. 51a.  Sec. 4 of No. 119 of the Acts of 2000 is amended to read:

Sec. 4.  BASIC NEEDS BUDGET CALCULATIONS; JOINT FISCAL

            OFFICE

     The joint fiscal office shall issue a report on or before January 15 of each year until January 15, 2004 2006 that includes a computation of base line data of the cost of living in Vermont and the current wage levels within various sectors of the economy, using the methodology of the report prepared for the livable income study committee issued on November 9, 1999.  The report shall include:

          (1)  A set of “basic needs budgets” for various household configurations for the previous year.  The “basic needs budgets” are calculations of the amount of money needed by various household configurations to maintain a decent standard of living in Vermont, using current state and federal data sources for determining such basic monthly expenses as food, housing, transportation, child care, utilities, personal expenses and health care.

          (2)  A review of current state wage distributions.

          (3)  Changes in the federal minimum wage and in the minimum wage rates of surrounding and comparable states.

Sec. 52.  Lottery commission

                   Personal services                             1,228,565

                   Operating expenses                         1,022,961

                        Total                                          2,251,526

               Source of funds

                   Enterprise funds                               2,251,526

     (a)  The lottery commission shall not reduce funding for the responsible gambling program.

     (b)  Of the above appropriation, $40,000.00 shall be transferred to the department of health, office of alcohol and drug abuse programs to augment funds for the gambling addiction program.

     (c)  The lottery commission shall contract for an independent review of lottery advertising effectiveness, specifically the use of lottery employees in advertising.

     (d)  The lottery commission shall explore the feasibility of printing Amber Alert information on the back of lottery tickets. 

Sec. 52a.  31 V.S.A. § 658(b) is amended to read:

     (b)  Expenditures for administrative and overhead expenses of the operation of the lottery, except agent and bank commissions, shall be paid from lottery receipts from an appropriation authorized for that purpose.  Agency Agent commissions shall be set by the lottery commission and may not exceed 5.75 6.25 percent of gross receipts and bank commissions may not exceed 1 percent of gross receipts.

Sec. 53.  Payments in lieu of taxes

                   Grants                                             2,250,000

               Source of funds

                    General fund                                       800,000

                   Special funds                                   1,450,000

                        Total                                          2,250,000

     (a)  The above appropriation is for state payments in lieu of property taxes under 32 V.S.A. chapter 123, subchapter 4, and the payments shall be calculated in addition to, and without regard to, the appropriations for PILOT for Montpelier and correctional facilities elsewhere in this act.

Sec. 53a.  PILOT ONE-TIME APPROPRIATION

     (a)  There is appropriated $200,000.00 of general funds in fiscal year 2004 to the tax department for the PILOT program.

Sec. 53b.  24 V.S.A. § 138(d) is amended to read:

     (d)   Of the taxes reported under this section, 80 percent shall be paid to the municipality in which they were reported for calendar year 1999, 70 percent shall be paid to the municipality in which they were reported for calendar years thereafter.  Such revenues may be expended by the municipality for municipal services only and not for educational expenditures.  The remaining amount of the taxes reported shall be remitted monthly to the state treasurer for deposit in the PILOT special fund established in Sec. 89 of No. 60 of the Acts of 1997.  Amounts to be paid to a municipality under this section shall be reduced by five percent to reflect the difference between the amounts reported and collected.  Taxes due to a municipality under this section, less the costs of administration and collection, shall be paid on a quarterly basis.

Sec. 54.  Payments in lieu of taxes - Montpelier

                   Grants                                                184,000

               Source of funds

                   General fund                                       184,000

Sec. 55.  Payments in lieu of taxes - correctional facilities

                   Grants                                                  40,000

               Source of funds

                   General fund                                         40,000

Sec. 56.  Total general government                 129,147,384

               Source of funds

                   General fund                                  47,973,302

                   Transportation fund                       10,089,826

                   Special funds                                   4,764,754

                   Tobacco fund                                       58,000

                   Federal funds                                  2,175,142

                   Enterprise funds                               2,417,549

                   Internal service funds                     39,837,857

                   Pension trust funds                         18,777,093

                   Private purpose trust funds                  495,964

                   Interdepartmental transfer                2,557,897

                        Total                                      129,147,384

Sec. 57.  Protection to persons and property - Attorney general

                   Personal services                             4,361,588

                   Operating expenses                            878,657

                        Total                                          5,240,245

               Source of funds

                   General fund                                    2,086,068

                   Transportation fund                              85,971

                   Special funds                                   1,353,333

                   Tobacco fund                                     290,000

                   Federal funds                                     468,346

                   Interdepartmental transfer                   956,527

                        Total                                          5,240,245

Sec. 57a.  HYDROELECTRIC APPRAISAL APPEALS – CONTINUED

                FUNDING

     (a)  There is appropriated from the general fund in fiscal year 2004 $75,000.00 to the attorney general for continued litigation costs associated with the appeals of hydroelectric facilities in Vermont.

Sec. 57b.  ONE-TIME APPROPRIATION; PROFESSIONAL LICENSING

                 UNIT TRANSFER

     (a)  In order to facilitate the transfer of the professional licensing unit from the office of the attorney general to the secretary of state, $25,000.00 in general funds is appropriated to the attorney general on a one-time basis.

Sec. 58.  Attorney general - telemarketing fraud

                   Personal services                                126,888

                   Operating expenses                              23,112

                        Total                                             150,000

               Source of funds

                   Federal funds                                     150,000

Sec. 59.  Vermont court diversion

                   Grants                                             1,264,041

               Source of funds

                   General fund                                       745,531

                   Transportation fund                            177,804

                   Special funds                                      340,706

                        Total                                          1,264,041

     (a)  Of the above general fund appropriation, $30,000.00 shall be allocated for a grant to the Rutland county court diversion program for the juvenile sexual offender treatment program.

Sec. 60.  Center for crime victims services

                   Personal services                                842,250

                   Operating expenses                            264,604

                   Grants                                             4,612,084

                        Total                                          5,718,938

               Source of funds

                   General fund                                       728,828

                   Special funds                                      760,767

                   Federal funds                                  4,166,843

                   Interdepartmental  transfer                    62,500

                        Total                                          5,718,938

Sec. 60a.  ONE-TIME APPROPRIATION; CRIME VICTIMS SERVICES

     (a)  There is appropriated the sum of $40,000.00 from the general fund to the center for crime victims services.  These funds shall be used to provide one-time enhancement grants.  The grants shall be dispersed as follows:  $5,500.00 to the project against violent encounters and the remaining funds shall be made at levels of $2,300.00 to each of the member organizations of the domestic violence and sexual abuse network.

Sec. 61.  Center for crime victims services - victim compensation

                   Grants                                                610,000

               Source of funds

                   Special funds                                      420,000

                   Federal funds                                     190,000

                        Total                                             610,000

Sec. 62.  State’s attorneys

                   Personal services                             7,217,041

                   Operating expenses                         1,027,084

                   Grants                                                  30,000

                        Total                                          8,274,125

               Source of funds

                   General fund                                    6,269,290

                   Transportation fund                            456,076

                   Federal funds                                         5,000

                   Interdepartmental transfer                1,543,759

                        Total                                          8,274,125

Sec. 62a.  ADDISON COUNTY STATE’S ATTORNEY; ONE-TIME

                APPROPRIATION

     (a)  There is appropriated the sum of $25,000.00 from the general fund to the state’s attorney to support a temporary deputy state’s attorney in Addison county.

Sec. 63.  Sheriffs

                   Personal services                             1,129,834

                   Operating expenses                              65,971

                        Total                                          1,195,805

               Source of funds

                   General fund                                    1,130,298

                   Transportation fund                              65,507

                        Total                                          1,195,805

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

Sec. 64.  Sheriffs - transport

                   Personal services                             1,246,020

                   Operating expenses                            247,755

                        Total                                          1,493,775

               Source of funds

                   General fund                                       855,070

                   Transportation fund                            638,705

                        Total                                          1,493,775

Sec. 64a.  SHERIFFS’ TRANSPORT; ONE-TIME APPROPRIATION

     (a)  The sum of $150,000.00 in general funds is appropriated to the sheriffs’ department for transport in fiscal year 2004.

Sec. 65.  Defender general - public defense

                   Personal services                             4,958,827

                   Operating expenses                            522,215

                        Total                                          5,481,042

               Source of funds

                   General fund                                    4,423,230

                   Transportation fund                            646,496

                   Special funds                                      366,316

                   Interdepartmental transfer                     45,000

                        Total                                          5,481,042

Sec. 66.  Defender general - assigned counsel

                   Personal services                             2,210,095

                   Operating expenses                              34,505

                        Total                                          2,244,600

               Source of funds

                   General fund                                    1,984,071

                   Transportation fund                            260,529

                        Total                                          2,244,600

Sec. 67.  Defender general - ad hoc counsel

                   Personal services                                127,403

               Source of funds

                   General fund                                       127,403

Sec. 68.  Military - administration

                   Personal services                                429,899

                   Operating expenses                            200,835

                   Grants                                                  81,683

                        Total                                             712,417

               Source of funds

                   General fund                                       712,417

     (a)  Of the above appropriation, $200,000.00 shall be transferred to the Vermont student assistance corporation for the national guard scholarship program, which comprises $138,000.00 of the above appropriation and $62,000.00 carryforward fiscal year 2003 funds.

     (b)  Total grants under 16 V.S.A. chapter 87, subchapter 4A shall not exceed $200,000.00 in fiscal year 2004, nor shall commitments or obligations be made for expenditure amounts above $200,000.00 in fiscal year 2005.

Sec. 68a.  MILITARY FAMILY SERVICES; ONE-TIME APPROPRIATION

     (a)  There is appropriated to the military $30,000.00 of general funds in fiscal year 2004 for the costs of the family services center at Camp Johnson.

Sec. 69.  Military - air service contract

                   Personal services                             3,456,440

                   Operating expenses                            886,961

                        Total                                          4,343,401

               Source of funds

                   General fund                                       341,697

                   Federal funds                                  4,001,704

                        Total                                          4,343,401

Sec. 70.  Military - army service contract

                   Personal services                             2,390,179

                   Operating expenses                         8,176,700

                        Total                                        10,566,879

               Source of funds

                   General fund                                       133,494

                   Federal funds                                10,433,385

                        Total                                        10,566,879

Sec. 71.  Military - building maintenance

                   Personal services                                916,596

                   Operating expenses                            415,444

                        Total                                          1,332,040

               Source of funds

                   General fund                                    1,332,040

Sec. 72.  Military - veterans’ affairs

                   Personal services                                157,723

                   Operating expenses                              45,000

                   Grants                                                107,165

                        Total                                             309,888

               Source of funds

                   General fund                                       309,888

     (a)  Of the above general fund appropriation, $15,000.00 shall be used for the Veterans’ Day Parade. 

Sec. 72a.  ONE-TIME APPROPRIATION; VETERANS’ MEDALS

     (a)  There is appropriated to the military department, division of veterans’ affairs, $25,000.00 of general funds in fiscal year 2004 for veterans’ medals.

Sec. 72b.  ONE-TIME APPROPRIATION; SURVIVORS OF CASUALTIES;

                OPERATION IRAQI FREEDOM

     (a)  There is appropriated $3,500.00 in general funds to the military department, division of veterans’ affairs, to be used to support Vermont survivors of casualties in Operation Iraqi Freedom.  First priority shall be given to families of service persons who have died as a result of this military engagement.  The funds can be used to provide for memorial service expenses including travel expenses.  Any funds remaining at the end of fiscal year  2004 shall be used for cemetery maintenance.

Sec. 73.  Labor and industry

                   Personal services                             5,406,989

                   Operating expenses                         1,273,800

                   Grants                                                  70,000

                        Total                                          6,750,789

               Source of funds

                   General fund                                       756,554

                   Special funds                                   4,802,539

                   Federal funds                                  1,134,548

                   Interdepartmental transfer                     57,148

                        Total                                          6,750,789

Sec. 73a.  STUDY AND REPORT; WORKERS’ COMPENSATION

(a)  The joint fiscal office, the legislative council, with the department of labor and industry, in cooperation with the department of banking, insurance, securities, and health care administration, and an advisory committee appointed by the commissioner of labor and industry composed of three representatives from business and three representatives from labor shall study:

(1)  All the factors that contribute to the annual increase in workers’ compensation insurance premium rates, the factors that contributed to the very high 17 percent increase in those premiums for 2003, the percentage of increases experienced by neighboring states and the other New England states, and a comparison of the percentage increase for Vermont employers as compared to neighboring states and the other New England states.

(2)  Systems for delivering workers’ compensation insurance in other jurisdictions, including those with state workers’ compensation funds, hybrids of private and state funds, and variations of the private insurance delivery system, with particular attention to those states that experienced less than a 17 percent premium rate increase for 2003.

(3)  Proposals for changes to the present delivery system that would be expected to stabilize or reduce workers’ compensation premium rate increases, including the cost of those proposals and any impact that the changes would have on the administration of the workers’ compensation program.

(b)  The departments shall issue a report to the general assembly on or before January 1, 2004, that includes the following:

(1)  A detailed explanation of the factors that affect annual premium rate increase, the specific factors that contributed to the high premium rate increase for workers’ compensation insurance coverage in Vermont in 2003, and a comparison of Vermont and its neighboring states and the other New England states.  The comparison shall include for each state the percentage premium rate increase, a description of the workers’ compensation delivery system, and comparison of the common and differing factors that affected the rates.

(2)  A detailed description and comparison of the most efficient and stable workers’ compensation delivery systems in place in other states that have experienced smaller increases in workers’ compensation premium rates, including a state workers’ compensation fund system, a changed private insurance delivery system, or a hybrid system comprising both a state fund and private insurers. 

(3)  Recommendations for changes to or reorganization of the Vermont workers’ compensation delivery system that could be expected to reduce or stabilize the double digit annual workers’ compensation insurance premium rate increases, including the cost of the recommended changes or reorganization and the impact of the recommendations in regard to the efficient administration of the workers’ compensation program; and the level and delivery of wage-replacement, medical, and rehabilitation benefits to injured workers, and workplace safety.

(4)  Any other information that would enlighten and lead to a solution of stabilizing the annual increases in workers’ compensation insurance premiums in Vermont.

Sec. 74.  21 V.S.A. § 210(a) is amended to read:

     (a)  Upon issuance of a citation under this chapter, the review board is authorized to assess civil penalties for grounds provided in this subsection.  In assessing civil penalties, the review board shall follow to the degree practicable the federal procedures prescribed in rules promulgated under the Act.  The review board shall give due consideration to the appropriateness of the penalty with respect to the size of the business or operation of the employer being assessed, the gravity of the violation, the good faith of the employer, and the history of previous violations.  Civil penalties shall be paid to the commissioner for deposit with the state treasurer, and may be recovered in a civil action in the name of the state of Vermont brought in any court of competent jurisdiction.  The commissioner shall not reduce the assessed penalties in any fiscal year by more than 50 percent.

* * *

Sec. 75.  Labor and industry - wage and hour

                   Personal services                                123,447

                   Operating expenses                              39,250

                        Total                                             162,697

               Source of funds

                   General fund                                       162,697

Sec. 76.  Criminal justice training council

                   Personal services                                634,929

                   Operating expenses                            730,515

                        Total                                          1,365,444

               Source of funds

                   General fund                                       558,151

                   Transportation fund                            348,154

                   Special funds                                      432,029

                   Interdepartmental transfer                     27,110

                        Total                                          1,365,444

Sec. 77.  Criminal justice training council - domestic violence

                    Personal services                                  25,337

                   Operating expenses                                3,489

                        Total                                               28,826

               Source of funds

                   Special funds                                        28,826

Sec. 78.  Liquor control - enforcement and licensing

                   Personal services                             1,412,065

                   Operating expenses                            295,577

                        Total                                          1,707,642

               Source of funds

                   Tobacco fund                                     318,973

                   Enterprise funds                               1,388,669

                        Total                                          1,707,642

     (a)  The above tobacco fund appropriation shall be used for the sole purpose of education and enforcement.  The department shall report on the use of these funds to the house and senate committees on appropriations by December 15, 2003.

Sec. 79.  Liquor control - administration

                   Personal services                             1,167,256

                   Operating expenses                            332,915

                        Total                                          1,500,171

               Source of funds

                   Enterprise funds                               1,500,171

Sec. 80.  Liquor control - warehousing and distribution

                   Personal services                                627,381

                   Operating expenses                            247,759

                        Total                                             875,140

               Source of funds

                   Enterprise funds                                  875,140

Sec. 81.  Vermont racing commission

                   Personal services                                    2,076

                   Operating expenses                                2,924

                        Total                                                 5,000

               Source of funds

                   General fund                                           5,000

Sec. 82.  Secretary of state

                   Personal services                             2,847,266

                   Operating expenses                         1,226,474

                        Total                                          4,073,740

               Source of funds

                   General fund                                       522,023

                   Special funds                                   2,917,829

                   Federal funds                                     558,888

                   Interdepartmental transfer                     75,000

                        Total                                          4,073,740

Sec. 83.  [Deleted]

Sec. 84.  3 V.S.A. § 127(b) is amended to read:

     (b)  A person practicing a licensed regulated profession without authority may, upon the complaint of the attorney general or a state’s attorney or an attorney assigned by the office of professional regulation, be enjoined there from by the superior court and may be assessed a civil penalty of not more than $1,000.00.  The attorney general or an attorney assigned by the office of professional regulation may elect to bring an action seeking only a civil penalty of not more than $1,000.00 for practicing a regulated profession without authority before the board having regulatory authority over the profession.  Such hearings will be conducted in the same manner as disciplinary hearings.

Sec. 85.  3 V.S.A. § 129(c) is amended to read as follows:

     (c)  A board may assign one or more members of the board to investigate complaints and license applications.  These members shall have the assistance of an investigator for the office and the attorney general an attorney assigned by the office of professional regulation who shall be responsible for prosecuting disciplinary and licensing cases before the board.  In the case of professions which have advisor appointees, the secretary may designate one or more of the advisor appointees or other licensed or certified members of the profession to assist in the investigation.  While acting in this capacity, a board member or advisor appointee shall not sit in adjudication of the case.  When a board is unable to assign one or more members to investigate complaints or license applications by reason of disqualification, resignation, vacancy or necessary absence, the secretary of state may, at the request of the board, appoint ad hoc members to serve on the board for investigation of that matter only.  Ad hoc members shall have the same qualifications as required by law for the absent members.  The board shall appoint independent counsel when, in the opinion of the attorney general or the board, the attorney general has a potential conflict of interest.

Sec. 86.  HELP AMERICA VOTE ACT FEDERAL GRANT ACCEPTANCE

     (a)(1)  To effectively utilize and manage federal funds received to support state and local election reforms, prior to expenditure of any federal funds received under the Help America Vote Act, the secretary of state is directed to submit a plan for spending any funds to the general assembly if it is in session, otherwise to the joint fiscal committee at a regularly scheduled meeting.  The plan shall specifically identify:

               (A)  the allocations of any federal grant funds specifying the entities receiving funds and how the funds will be used;

               (B)  the duration of the federal grant;

               (C)  any commitments required by the federal government if a grant is accepted; and

          (2)  No plan submitted pursuant to subdivision (1) of this section shall become effective unless approved by the general assembly, if it is in session; otherwise by the joint fiscal committee.

Sec. 86a.  SECRETARY OF STATE; FISCAL YEAR 2003 BUDGET

                 ADJUSTMENT

     (a)  There is appropriated to the secretary of state in fiscal year 2003 $60,000.00 in federal funds for expenditures under the Help America Vote Act 2002.  Expenditure of these funds may be made in anticipation of receipts.

Sec. 87.  Secretary of state - corporations

                   Personal services                                326,203

                   Operating expenses                            109,700

                        Total                                             435,903

               Source of funds

                   Special funds                                      435,903

     (a)  The above appropriation shall be from the securities and regulation and supervision fund in accordance with 9 V.S.A. § 4230(b).

Sec. 88.  Banking, insurance, securities, and health care administration - banking

                   Personal services                             1,069,968

                   Operating expenses                            255,941

                        Total                                          1,325,909

               Source of funds

                   Special funds                                   1,325,909

     (a)  Notwithstanding 9 V.S.A. § 4230(b), in fiscal year 2004, the commissioner of banking, insurance, securities, and health care administration may transfer up to $200,000.00 from the securities regulation and supervision fund to the banking supervision fund established in 8 V.S.A. § 19(f).

Sec. 89.  Banking, insurance, securities, and health care administration - insurance

                   Personal services                             2,301,930

                    Operating expenses                            472,900

                        Total                                          2,774,830

               Source of funds

                   Special funds                                   2,774,830

Sec. 90.  Banking, insurance, securities, and health care administration - captive

                   Personal services                             1,713,513

                   Operating expenses                            294,647

                        Total                                          2,008,160

               Source of funds

                   Special funds                                   2,008,160

Sec. 91.  Banking, insurance, securities, and health care administration - administration

                   Personal services                                774,090

                   Operating expenses                              51,167

                        Total                                             825,257

               Source of funds

                   Special funds                                      825,257

Sec. 92.  Banking, insurance, securities, and health care administration - securities

                   Personal services                                541,732

                   Operating expenses                            124,700

                        Total                                             666,432

               Source of funds

                   Special funds                                      666,432

Sec. 93.  Banking, insurance, securities, and health care administration - health care administration

                   Personal services                             2,641,041

                   Operating expenses                            365,565

                        Total                                          3,006,606

               Source of funds

                   General fund                                       476,523

                   Special funds                                   2,530,083

                        Total                                          3,006,606

Sec. 94.  Banking, insurance, securities, and health care administration - insurance agent licensing

                   Personal services                                356,013

                   Operating expenses                              90,900

                        Total                                             446,913

               Source of funds

                   Special funds                                      446,913

Sec. 95.  Public safety - state police

                    Personal services                           34,308,845

                   Operating expenses                         8,528,985

                   Grants                                             2,539,352

                        Total                                        45,377,182

               Source of funds

                   General fund                                  15,420,881

                   Transportation fund                       18,622,780

                   Special funds                                   3,487,976

                   Federal funds                                  7,088,511

                   Interdepartmental transfer                   757,034

                        Total                                        45,377,182

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

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

     (c)  It is the intent of the legislature that by the end of fiscal year 2004 the state police fill at least ten of the vacant trooper positions that were held open due to budgetary pressure in fiscal year 2003.

     (d)  The appropriation above includes a projected amount of $2,500,000.00 for overtime expenses. The department is directed to make every effort to manage its human resources during the fiscal year within this projection for overtime expenditures.

Sec. 95a.  COMMUNITY HEROIN INVESTIGATION PROGRAM

                 FUNDING

     (a)  Of the $230,000.00 allocated for local heroin interdiction grants funded in Sec. 95 of this act, $172,500.00 or 75 percent shall be used by the Vermont drug task force to fund two (2) additional town task force officers.  These town task force officers will be dedicated solely to heroin enforcement efforts.

     (b)  The remaining $57,500.00 or 25 percent, shall remain as a “pool” of money available to local and county law enforcement to fund overtime costs associated with heroin investigations.

     (c)  Any unexpended community heroin investigation program grant funds from prior fiscal years shall be carried forward and added to the pool of money available to local and county law enforcement to fund overtime costs associated with heroin investigations in fiscal year 2004.

Sec. 95b.  20 V.S.A. § 1827 is amended to read:

§ 1827.  COMMISSIONER OF PUBLIC SAFETY; COOPERATION

     The commissioner of public safety shall cooperate with and support all law enforcement agencies in this state in matters relating to missing persons.  When necessary to protect a missing person from harm, the commissioner may shall coordinate local and state efforts to search for and rescue the missing person.

Sec. 95c.  WINDSOR SCHOOL CLEANUP RECOVERY

     (a)  Notwithstanding Sec. 110b of No. 61 of the Acts of 1997, the amount of $899,251.76 is transferred from the Windsor school special fund to the environmental contingency fund established in 10 V.S.A. § 1283 for reimbursement of expenses associated with the environmental cleanup of the Windsor school site.  The amount of $400,000.00 is appropriated from the Windsor school special fund to the department of public safety for           the purpose of fit up expenses for new state police trooper positions.

Sec. 95d.  Sec. 94 of No. 142 of the Acts of 2002, as amended by Sec. 13 of No. 19 of the Acts of 2003, is further amended to read:

Sec. 94.  Public safety – state police

             Personal services                               31,620,941         32,203,941

             Operating expenses                             6,107,908           6,282,908

             Grants                                                 2,093,465           2,093,465

               Total                                               39,822,314         40,580,314

          Source of funds

             General fund                                      14,464,733         14,464,733

             Transportation fund                            17,327,645         17,327,645

             Special funds                                       2,661,652           2,661,652

             Federal funds                                       4,190,709           4,948,709

             Interdepartmental transfer                    1,177.575           1,177,575

               Total                                               39,822,314         40,580,314

* * *

Sec. 96.  Public safety - criminal justice services

                   Personal services                             4,444,389

                   Operating expenses                         4,258,997

                   Grants                                                478,900

                        Total                                          9,182,286

               Source of funds

                   General fund                                         95,000

                   Transportation fund                         3,580,878

                   Special funds                                      623,470

                   Federal funds                                  4,260,048

                    Interdepartmental transfer                   622,890

                        Total                                          9,182,286

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

     (b)  The establishment of one (1) new classified position - Drug Chemist - is authorized in fiscal year 2004.  This position shall be transferred and converted from existing vacant positions in the executive branch of state government.

Sec. 97.  Public safety - emergency management

                   Personal services                             1,401,979

                   Operating expenses                            732,483

                   Grants                                                739,495

                        Total                                          2,873,957

               Source of funds

                   General fund                                         48,930

                   Transportation fund                              63,969

                   Special funds                                   1,060,000

                   Federal funds                                  1,700,058

                   Interdepartmental transfer                       1,000

                        Total                                          2,873,957

     (a)  The establishment of three (3) new classified positions – one (1) Emergency Planning Zone Local Coordinator, one (1) Emergency Planning Zone Coordinator, and one (1) Administrative Assistant – is authorized in fiscal year 2004.  These positions shall be transferred and converted from existing vacant positions in the executive branch of state government.

     (b)  In fiscal year 2004, the division of emergency management in consultation with the state agencies, the management of the nuclear power plant and the select boards of the municipalities in the emergency planning zone shall develop the budget for expenditures from the radiological emergency response plan fund for fiscal year 2005 following the provisions of 20 V.S.A. § 38(a).  From the fund each town within the emergency planning zone shall receive an annual base grant of no less than $5,000.00 to reimburse the town for radiological emergency response related expenditures.  Any town within the emergency planning zone may also apply for a grant from the fund for expenditures made by the town for this purpose in excess of $5,000.00 in any year.

     (c)  Of the above special fund appropriation, $30,000.00 shall be granted to WTSA radio for the emergency alert system.

Sec. 97a.  20 V.S.A. § 38(a)(1) is amended to read:

§ 38.  SPECIAL FUNDS

(a)(1)  There is created a radiological emergency response plan fund, into which any entity operating a nuclear reactor or storing nuclear fuel and radioactive waste in this state (referred to hereinafter as “the nuclear power plant”) shall deposit the amount appropriated to support the Vermont radiological response plan for that fiscal year, adjusted by any balance in the radiological emergency response plan fund from the prior fiscal year.  There shall also be deposited into the fund any monies received from any other source, public or private, that is intended to support the radiological emergency response planning process.  The fund shall be managed in accordance with chapter 7, subchapter 5 of Title 32. Any interest earned on the balance in the fund shall be retained by the fund.

Sec. 97b.  20 V.S.A. § 38(a) (2) is amended to read:

          (2)  Expenditures from the fund shall be made by the division of emergency management, subject to an annual legislative appropriation.  As part of the annual appropriations process, the division of emergency management shall present a budget for the ensuing fiscal year that anticipates the expenditures that will be made from the fund.  The annual budget shall be developed by the division of emergency management in consultation with the Windham regional planning commission, state agencies, the management of the nuclear power plant, and the selectboards of the municipalities in the emergency planning zone and any other municipality defined by the state as required to support the plan.  State personnel with responsibility for local coordination and plan development shall be physically located in the region, preferably in the office of the Windham regional planning commission.  The annual budget shall include only expenditures necessary to support the radiological emergency response plan.

Sec. 97c.  Sec. 96 of No. 142 of the Acts of 2002 is amended to read:

Sec. 96.  Public safety – emergency management

             Personal services                                 1,022,640            439,640
             Operating expenses                             1,149,945            974,945
             Grants                                                 1,249,247         1,249,247
               Total                                                 3,421,832         2,663,832
          Source of funds
             General fund                                             48,930              48,930
             Transportation fund                                   63,969              63,969
             Special funds                                          420,523            420,523
             Federal funds                                       2,888,410         2,130,410
               Total                                                 3,421,832         2,663,832

Sec. 98.  Public safety - governor’s highway safety program

                   Personal services                                964,997

                   Operating expenses                            317,722

                   Grants                                             4,760,393

                        Total                                          6,043,112

               Source of funds

                   Transportation fund                            172,828

                   Special funds                                      544,896

                   Federal funds                                  5,325,388

                        Total                                          6,043,112

Sec. 99.  Agriculture, food and markets - administration

                   Personal services                                644,804

                   Operating expenses                            367,925

                   Grants                                                423,334

                        Total                                          1,436,063

               Source of funds

                   General fund                                    1,281,586

                   Special funds                                        14,732

                   Federal funds                                         4,211

                   Interdepartmental transfer                   135,534

                        Total                                          1,436,063

Sec. 100.  FARM YOUTH INITIATIVE

     (a)  The amount of $35,000.00 in general funds is appropriated to the department of agriculture, food and markets for the farm youth initiative.

Sec. 101.  Agriculture, food and markets - food safety and consumer assurance

                   Personal services                             1,902,255

                   Operating expenses                            289,608

                   Grants                                                    1,492

                        Total                                          2,193,355

               Source of funds

                   General fund                                    1,302,808

                   Transportation fund                              47,993

                   Special funds                                      350,547

                   Federal funds                                     485,007

                   Interdepartmental transfer                       7,000

                        Total                                          2,193,355

Sec. 102.  Agriculture, food and markets - agriculture development

                   Personal services                                651,372

                   Operating expenses                            438,182

                   Grants                                                  59,842

                        Total                                          1,149,396

               Source of funds

                   General fund                                       547,528

                   Special funds                                      451,447

                   Interdepartmental transfer                   150,421

                        Total                                          1,149,396

Sec. 102a.  20 V.S.A. § 3906 is amended to read:

§ 3906.  LICENSING OF PET MERCHANTS

(a)  No person may transact business as a pet merchant, as defined in this chapter, unless a license for that purpose has been granted by the commissioner to that person.  Application for the license shall be made in the manner provided by the commissioner.  The license period shall be April 1 to March 31 and the license fee shall be $30.00 $150.00 for each license period or part thereof.

     (b)  Pursuant to the authority granted to the commissioner of the department of agriculture, food and markets in section 1 of Title 6, the commissioner may contract with local veterinarians to provide services to the department to assist in the regulation of pet merchants.

Sec. 102b.  REPORT

     (a)  The department of agriculture, food and markets shall work with the Vermont animal cruelty task force to develop recommendations no later than January 15, 2004 for improving the existing system for licensing pet merchant facilities.  The department of agriculture, food and markets shall report the recommendations to the house and senate committees on agriculture no later than January 15, 2004.

Sec. 102c.  APPROPRIATION

     (a)  There is appropriated $25,000.00 in general funds in fiscal year 2004 to the special fund established in section 3914 of Title 20 for the purpose of licensing pet merchants.

Sec. 102d.  REPEAL

     (a)  20 V.S.A. § 3906(b) shall be repealed on July 1, 2004.

Sec. 103.  Agriculture, food and markets - plant industry, labs and consumer assurance

                   Personal services                             1,922,081

                   Operating expenses                            384,800

                        Total                                          2,306,881

               Source of funds

                   General fund                                       589,193

                   Special funds                                   1,158,879

                   Federal funds                                     348,220

                   Interdepartmental transfer                   210,589

                        Total                                          2,306,881

Sec. 104.  Agriculture, food and markets - state stipend

                   Grants                                                163,500

               Source of funds

                   General fund                                       163,500

Sec. 104a.  STATE FAIR CAPITAL PROJECTS; ONE-TIME

                  APPROPRIATION

     (a)  The sum of $100,000.00 in general funds is appropriated to the department of agriculture, food and markets and shall be used for a competitive grants program for state fair capital projects.  No single entity shall be awarded more than ten percent of this appropriation.

Sec. 105.  Agriculture, food and markets - mosquito control

                   Personal services                                  20,000

                   Operating expenses                              70,000

                        Total                                               90,000

               Source of funds

                   Special funds                                        90,000

Sec. 106.  Agriculture, food and markets - farm conservation

                   Personal services                                  53,323

                   Operating expenses                                8,000

                        Total                                               61,323

               Source of funds

                   Special funds                                        61,323

Sec. 107.  Public service - regulation and energy

                   Personal services                             4,067,746

                   Operating expenses                            613,075

                   Grants                                                475,000

                        Total                                          5,155,821

               Source of funds

                   Special funds                                   4,142,087

                   Federal funds                                     988,734

                   Interdepartmental transfer                     25,000

                        Total                                          5,155,821

Sec. 108.  Public service - purchase and sale of power

                   Personal services                                    8,577

                   Operating expenses                                2,215

                        Total                                               10,792

               Source of funds

                   Special funds                                        10,792

Sec. 109.  Public service - consumer affairs and public information

                   Personal services                                284,785

                   Operating expenses                              21,779

                        Total                                             306,564

               Source of funds

                   Special funds                                      306,564

Sec. 110.  Enhanced 9-1-1 board

                   Personal services                             1,885,127

                   Operating expenses                            366,658

                        Total                                          2,251,785

               Source of funds

                   Special funds                                   2,251,785

Sec. 111.  Enhanced 9-1-1 board - training

                   Personal services                                165,803

               Source of funds

                   Special funds                                      165,803

Sec. 112.  [Deleted]

Sec. 113.  Public service board

                   Personal services                             2,212,516

                   Operating expenses                            320,000

                        Total                                          2,532,516

               Source of funds

                   Special funds                                   2,532,516

Sec. 114.  Judiciary

                   Personal services                           22,162,565

                    Operating expenses                         5,633,750

                   Grants                                                    5,000

                        Total                                        27,801,315

               Source of funds

                   General fund                                  21,433,965

                   Transportation fund                         3,740,140

                   Special funds                                      455,050

                   Tobacco fund                                       40,000

                   Federal funds                                     200,639

                   Interdepartmental transfer                1,931,521

                        Total                                        27,801,315

     (a)  Of the above general fund appropriation, $136,000.00 shall be allocated for civil jury trials.

Sec. 114a.  4  V.S.A. § 25(b) is amended to read:

     (b)  The supreme court is authorized to pay on an hourly basis all persons whose compensation is established by 32 V.S.A. §§ 1010, 1141, 1511, 1551 and 1592 and 4 V.S.A. §§ 23, 75 and 356.  The supreme court shall pay all persons whose compensation is established by 32 V.S.A. § 1141 on the basis of a half-day minimum and hourly thereafter.

Sec. 115.  Human rights commission

                   Personal services                                304,206

                   Operating expenses                              83,013

                        Total                                             387,219

               Source of funds

                   General fund                                       242,907

                   Special funds                                                 1

                   Federal funds                                     144,311

                        Total                                             387,219

Sec. 116.  Fire service training council

                   Personal services                                263,160

                   Operating expenses                            144,472

                   Grants                                                  30,000

                        Total                                             437,632

               Source of funds

                   General fund                                       365,157

                   Special funds                                        72,475

                        Total                                             437,632

     (a)  Of the above general fund appropriation, $30,000.00 shall be granted to the Vermont Rural Fire Protection Task Force for the purpose of designing dry hydrants.

Sec. 117.  Fire service training council - firefighter 1 training

                   Personal services                                422,709

                   Operating expenses                            343,301

                        Total                                             766,010

               Source of funds

                   Transportation fund                              99,985

                   Special funds                                      386,525

                   Federal funds                                     105,000

                   Interdepartmental transfer                   174,500

                        Total                                             766,010

Sec. 118.  Total protection to persons and property   188,250,070

               Source of funds

                    General fund                                  65,685,228

                   Transportation fund                       29,007,815

                   Special funds                                 40,602,700

                   Tobacco fund                                     648,973

                   Federal funds                                41,758,841

                   Enterprise funds                               3,763,980

                   Interdepartmental transfer                6,782,533

                        Total                                      188,250,070

Sec. 119.  Human services - agency of human services - secretary’s office

                   Personal services                             2,639,266

                   Operating expenses                         1,268,130

                   Grants                                           10,025,011

                        Total                                        13,932,407

               Source of funds

                   General fund                                    5,300,669

                   Special funds                                      155,000

                   Tobacco fund                                     739,000

                   Federal funds                                  6,637,738

                   Interdepartmental transfer                1,100,000

                        Total                                        13,932,407

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

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

     (c)  Notwithstanding 32 V.S.A. § 706, the secretary may transfer funds allocated for the “high risk pool” and costs related to juvenile justice as outlined in this section as well as the substance abuse related allocations in subsection (h) outlined in this section to the departments in the agency of human services designated to provide these services.

     (d)  Notwithstanding 33 V.S.A. §§ 5502 and 5517, the agency of human services may on an ongoing basis seek a CHINS petition for 16- to 17.5‑year‑old youths who are not in the custody of the state but are at high risk of serious harm to themselves or others due to problems such as substance abuse, prostitution or homelessness, and whose needs transcend any one department of the agency of human services and require complicated clinical interventions from multiple organizations.  Petitions filed pursuant to this section shall set forth facts supporting the specific requirements of this section, and that it is in the best interests of the child to be considered as a child in need of care or supervision.  If the court finds all of the allegations set forth in the petition have been established, it shall find the child is in need of care or supervision.  All proceedings initiated pursuant to this section shall be conducted in accordance with the requirements of 33 V.S.A. chapter 55.  Services will be provided through a coordinated effort by the agency of human services, the department of education, and community‑based interagency teams.  Of the above tobacco fund appropriation, $200,000.00 along with any available matching federal funds shall be made available for the services under this program.

     (e)  Of the above tobacco settlement funds, $49,000.00 shall be used to provide a grant to the project against violent encounters for a statewide program for substance abuse prevention and mentoring program for youth.

     (f)  Of the above tobacco fund appropriation, $100,000.00 shall be used for a grant to Lamoille County people in partnership for wrap-around services for at-risk youth.

     (g)  Of the above tobacco fund appropriation, $100,000.00 with any corresponding federal matching funds shall be for comprehensive treatment services and $25,000.00 for safe housing provisions for at-risk youth.

     (h)  Of the above appropriation, $1,634,541.00 in general funds and $165,000.00 in tobacco funds shall be used for the comprehensive substance prevention and treatment component of the drug education, treatment, enforcement, and rehabilitation program (DETER).  The sum of $992,107.00 in general funds with available federal matching funds shall be used to provide outpatient and opiate treatment and aftercare.  Of the funds available for outpatient and opiate treatment and aftercare, $100,000.00 shall be allocated for treatment for referrals from the Rutland drug court and shall be available to be used as match for federal funds for the Rutland drug court.  The sum of $517,101.00 in general funds with available federal matching funds shall be used for residential treatment programs including transitional halfway house programs, and a rate increase for the Serenity House program.  The sum of $125,333.00 in general funds with any available federal matching funds shall be used to fund 10 new student assistance counselors for the 2003/2004 school year.   The sum of $165,000.00 in tobacco funds shall be used to fund recovery centers.  Of this amount, $75,000.00 is allocated to the existing centers and $90,000.00 is allocated to start centers in three communities.

     (i)  Of the above general fund appropriation, $30,000.00 shall be granted to prevent child abuse Vermont for a comprehensive health education and violence prevention curriculum for seventh and eighth grade students.

     (j)  Of the above general fund appropriation, $5,000.00 shall be granted to the Vermont council of girl scouts to support a girl scout special project to assist girls with incarcerated mothers.

Sec. 119a.  FEDERAL MEDICAL ASSISTANCE PERCENTAGES

     (a)  The secretary of the agency of human services is authorized to accept excess federal receipts that result from Federal Medical Assistance Percentage changes enacted during the first session of the 108th Congress.

          (1)  Within the department of prevention, assistance, transition, and health access any savings of special funds due to such excess receipts shall remain in the health access trust fund and the special fund spending authority shall be reduced accordingly.

          (2)  Outside the department of prevention, assistance, transition and health access and the special education related Medicaid, the secretary of the agency of human services shall transfer to the human services caseload reserve any state funds that can be reserved for expenditures in future years due to these excess federal receipts.

Sec. 120.  JUVENILE JUSTICE DIRECTOR

     (a)  The governor shall appoint a juvenile justice director, reporting directly to the secretary of the agency of human services, who shall have the responsibility and authority to monitor and coordinate all state and participating regional and local programs that deal with juvenile justice issues, including prevention, education, enforcement, adjudication and rehabilitation.

     (b)  The juvenile justice director shall ensure that the following occur:

          (1)  Development of a comprehensive plan for a coordinated and sustained statewide program to reduce the number of juvenile offenders, involving state, regional and local officials in the areas of health, education, prevention, law enforcement, corrections, teen activities and community wellness.

          (2)  Cooperation among state, regional and local officials, court personnel, service providers and law enforcement agencies in the formulation and execution of a coordinated statewide juvenile justice program.

          (3)  Cooperation among appropriate departments, including, but not limited to, the departments of education, corrections, social and rehabilitation services, employment and training, developmental and mental health services, and public safety, and the office of alcohol and drug abuse programs.

          (4)  Study of issues relating to juvenile justice and development of recommendations regarding changes in law and rules, as deemed advisable.

          (5)  Compilation of data on issues relating to juvenile justice, and analysis, study and organization of such data for use by educators, researchers, policy advocates, administrators, legislators and the governor.

Sec. 121.  AGENCY OF HUMAN SERVICES; RESTRUCTURING;

                CONSULTATION SERVICES

     (a)  The sum of $50,000.00 is appropriated from the general fund in fiscal year 2004 to the agency of human services which may be augmented by grants or federal matching funds.  These funds or a portion of these funds shall be used to employ consultation services consistent with the authority granted to the secretary for the purposes of the organizational restructuring of the agency.

Sec. 122.  Rate setting

                   Personal services                                614,628

                   Operating expenses                              56,829

                        Total                                             671,457

               Source of funds

                   Interdepartmental transfer                   671,457

     (a)  Notwithstanding the provisions of the division of rate setting rules “methods, standards and principles for establishing payment rates for private non-medical institutions providing residential child care services,” § 4.17, relating to applied revenues, rates set for programs run by the Baird center for children and families shall not take into account funds made available to the Baird center through federal grant # H324E016001.

Sec. 123.  Human services board

                   Personal services                                258,967

                   Operating expenses                              26,292

                        Total                                             285,259

               Source of funds

                   General fund                                       121,879

                   Federal funds                                     123,498

                   Interdepartmental transfer                     39,882

                        Total                                             285,259

Sec. 124.  Developmental disabilities council

                   Personal services                                115,736

                   Operating expenses                              36,554

                   Grants                                                320,793

                        Total                                             473,083

               Source of funds

                   Federal funds                                     473,083

Sec. 125.  Office of child support services

                   Personal services                             7,349,794

                   Operating expenses                         2,732,847

                        Total                                        10,082,641

               Source of funds

                   General fund                                    1,114,864

                   Special funds                                      454,125

                   Federal  funds                                 8,406,552

                   Interdepartmental transfer                   107,100

                        Total                                        10,082,641

Sec. 126.  Health - administration and support

                   Personal services                             3,786,016

                   Operating expenses                            983,556

                        Total                                          4,769,572

               Source of funds

                   General fund                                    1,025,566

                   Special funds                                        25,000

                    Federal funds                                  3,713,396

                   Interdepartmental transfer                       5,610

                        Total                                          4,769,572

Sec. 127.  Health - health protection

                   Personal services                             3,078,754

                   Operating expenses                            650,861

                   Grants                                                276,100

                        Total                                          4,005,715

               Source of funds

                   General fund                                    1,320,897

                   Special funds                                      972,500

                   Federal funds                                  1,262,501

                   Interdepartmental transfer                   449,817

                        Total                                          4,005,715

Sec. 128.  Health - health surveillance

                   Personal services                             6,391,995

                   Operating expenses                         1,832,713

                   Grants                                             2,686,000

                        Total                                        10,910,708

               Source of funds

                   General fund                                    3,722,469

                   Special funds                                   1,029,250

                   Federal funds                                  6,063,989

                   Permanent trust                                    10,000

                   Interdepartmental transfer                     85,000

                        Total                                        10,910,708

     (a)  Of the above general fund appropriation, $250,000.00 and at least $50,000.00 in federal funds shall be appropriated to the Vermont AIDS service organizations for client-based support services.  The grants in this section shall be awarded equitably, on a per-client basis, and shall be used for services only, not administrative or other purposes.  The method by which AIDS service organizations’ clients are counted shall be determined by mutual agreement of the department of health, the AIDS service organizations, and the HIV/AIDS service advisory council (HASAC). 

     (b)  Of the above federal fund appropriation, the Ryan White Title II federal service funds shall be used for direct client-based support services, including services that assist people living with HIV/AIDS to access medical care.  The department shall follow federal guidelines, and shall be advised by the HASAC for the purpose of prioritization of the use of these funds.  Criteria shall be developed by the department, in collaboration with the HASAC, to govern situations when the department may select providers outside the existing AIDS service organizations network to receive part of these Ryan White Title II funds.

     (c)  Of the general fund appropriation in this act for health - health surveillance, $175,000.00 shall be used for all aspects of the HIV/AIDS medication assistance program (AMAP), including the costs of prescribed medications, related laboratory testing, nutritional supplements and maximum cost-effectiveness for the program.

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

     (e)  The secretary of human services shall work in conjunction with the AMAP advisory committee, comprising no less than 50 percent of members who are living with HIV/AIDS.  The committee shall make recommendations regarding the program’s formulary of approved medication, related laboratory testing, nutritional supplements and eligibility for the program.

Sec. 129.  Health - health improvement

                   Personal services                             5,713,181

                   Operating expenses                         1,492,659

                   Grants                                             9,960,655

                        Total                                        17,166,495

               Source of funds

                   General fund                                    2,786,469

                   Special funds                                      802,000

                   Tobacco fund                                  2,734,724

                   Federal funds                                10,664,738

                   Interdepartmental transfer                   178,564

                        Total                                        17,166,495

     (a)  The department of health may carry forward any unspent portion of funds designated for health professional loan repayment.  These funds may be used either alone or to match federal national health service corps loan repayment funds, local funds, or private funds, and shall be made available to primary care providers, dentists and licensed nurses who agree to practice for a prescribed period of time in the state or at an accredited hospital within 10 miles of the Vermont border, serving a portion of the state designated as a health professional shortage population, or other rural or underserved areas.  Educational scholarships, loan repayment grants, loan deferment payments and payments of taxes due on the award may be considered for payment.

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

     (c)  The above tobacco appropriation in this section shall be utilized according to the provisions of 18 V.S.A. chapter 225, as follows:

          (1)  community-based programs - $1,023,624.00

          (2)  countermarketing - $516,100.00

          (3)  tobacco cessation programs - $1,050,000.00

          (4)  statewide programs (health care/provider education) - $75,000.00

          (5)  surveillance and evaluation activities - $70,000.00.

These allocations are in addition to the general funds appropriated in Sec. 7a of $250,000.00 to support counter marketing activities designed by the tobacco evaluation and review board and $250,000.00 for evaluation of tobacco control and cessation programs in the state.

     (d)  Of the above general fund appropriation, $80,000.00 shall be used for the dental loan repayment program and $20,000.00 shall be used for dental hygienist loan repayment or loan forgiveness.  These funds shall be administered in the same manner as other professional loan repayment programs in this appropriation.

Sec. 130.  Health - community public health

                   Personal services                           10,621,949

                   Operating expenses                         1,599,593

                   Grants                                           12,328,819

                        Total                                        24,550,361

               Source of funds

                   General fund                                    4,415,485

                   Special funds                                      628,940

                   Federal funds                                19,410,397

                   Interdepartmental transfer                     95,539

                        Total                                        24,550,361

Sec. 131.  Health - alcohol and drug abuse programs

                   Personal services                             2,182,025

                   Operating expenses                            520,942

                   Grants                                           12,133,451

                        Total                                        14,836,418

               Source of funds

                   General fund                                    4,082,018

                   Special funds                                        86,000

                   Tobacco fund                                  2,171,266

                   Federal funds                                  8,457,134

                   Interdepartmental transfer                     40,000

                        Total                                        14,836,418

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

     (b)(1)  In accordance with federal law, the division of alcohol and drug abuse programs may use the following interim criteria to determine whether to enroll a state-supported Medicaid and uninsured population substance abuse program in the division’s network of designated providers, as described in the state plan:

               (A)  The program’s ability to provide the quality, quantity and levels of care required under the division’s standards, licensure standards, and accreditation standards established by the commission of accreditation of rehabilitation facilities, the joint commission on accreditation of health care organizations, or the commission on accreditation for family services.

               (B)  Any program that is currently being funded in the existing network shall continue to be a designated program until further standards are developed, provided the standards identified in subdivision (A) of this subsection are satisfied.

               (C)  All programs shall continue to fulfill grant or contract agreements.

          (2)  The provisions of subdivision (1) of this subsection shall not preclude the division’s “request for bids” process.

     (c)  The office of alcohol and drug abuse programs shall submit a plan for development of a preferred provider system to the legislature by no later than January 15, 2004.

     (d)  Of the above appropriation, $75,000.00 shall be used for drug court programs in Bennington, Chittenden and Rutland counties.  The sum of $25,000.00 is allocated for each drug court program to be used for treatment and/or case management and screening services as needed.

     (e)  In the implementation and administration of the new 80 bed in-state residential treatment program, the agency of human services shall give priority to drug court referrals.

Sec. 132.  OPIATE ADDICTION TREATMENT

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

Sec. 133.  REIMBURSEMENT RATES FOR OPIATE ADDICTION

                TREATMENT PROGRAMS

     (a)  The commissioner shall establish, after conducting negotiations with hospitals and medical schools, reimbursement rates that reflect the reasonable cost of authorized opiate addiction treatment programs.

Sec. 134.  Health - medical practice board

                   Personal services                                557,317

                   Operating expenses                            114,497

                        Total                                             671,814

               Source of funds

                   Special funds                                      671,814

Sec. 135.  Social and rehabilitation services - administrative and support services

                   Personal services                             1,983,970

                   Operating expenses                            319,906

                        Total                                          2,303,876

               Source of funds

                   General fund                                    1,070,289

                   Federal funds                                  1,233,587

                        Total                                          2,303,876

Sec. 136.  Social and rehabilitation services - social services

                   Personal services                           16,153,776

                   Operating expenses                         2,646,669

                   Grants                                           52,416,365

                        Total                                        71,216,810

               Source of funds

                   General fund                                  29,223,639

                   Special funds                                   1,306,152

                   Tobacco fund                                       75,000

                   Federal funds                                40,612,019

                        Total                                        71,216,810

     (a)  Of the above appropriation, $711,580.00 general funds shall be allocated to the Vermont coalition of runaway and homeless youth programs, and of that amount $30,000.00 shall be utilized to support the Spectrum Rutland facility.  Prior to disbursement of funds to Spectrum, the facility shall submit a plan for sustainability to be reviewed by the commissioner of the department of social and rehabilitation services.

Sec. 136a.  33 V.S.A. § 4912(11) is repealed.

Sec. 136b.  33 V.S.A. § 4919 is amended to read:

§ 4919.  DISCLOSURE OF INFORMATION

     (a) The commissioner or the commissioner’s designee shall disclose the existence of a substantiated report of child abuse or abuse, neglect, or exploitation of a vulnerable adult, to the owner or operator of a facility regulated by the department for the purpose of informing the owner or operator that employment of a specific individual may result in loss of license or registration.

     (b) Disclosure of information or records used or obtained in the course of providing services to prevent child abuse or neglect or to treat abused or neglected children and their families by one member of a multidisciplinary team to another member of that team shall not subject either member of the multidisciplinary team, individually, or the team as a whole, to any civil or criminal liability notwithstanding any other provision of law.

     (c) The commissioner or the commissioner’s designee may, insofar as federal regulations allow, disclose the existence of a substantiated report of child abuse to the commissioner of the department of aging and disabilities or the commissioner’s designee for the purpose of informing the owner or operator that employment of a specific individual may result in loss of license or certification.

     (d) The secretary of the agency of human services may authorize the commissioner to disclose the existence of a substantiated report of child abuse or a substantiated report of abuse, neglect or exploitation of a vulnerable adult to:

          (1)  an owner or operator of a facility;

          (2)  a person who is determined to be a covered entity; or

          (3)  a person who is authorized by the agency to make an offer of employment, if such information is used to determine whether to hire a specific individual providing care, custody, treatment, or supervision of children, the elderly, vulnerable adults, or persons with disabilities.

     (a)  The commissioner shall maintain a registry which shall contain the following information:  the names of all the individuals found on the basis of a substantiated report to have abused, neglected or exploited a child; the date of the finding; and the nature of the finding.  In addition, the commissioner shall require that, aside from a person’s name, at least one other personal identifier is listed in the registry to prevent the possibility of misidentification.

     (b)  The commissioner or the commissioner’s designee may disclose registry information only:

          (1)  To the state’s attorney or the attorney general;

          (2)  To the owner or operator of a facility regulated by the department for the purpose of informing the owner or operator that employment of a specific individual may result in loss of license or registration;

          (3)  To an employer if such information is used to determine whether to hire or retain a specific individual providing care, custody, treatment, or supervision of children or vulnerable adults.  The employer may submit a request concerning a current employee, volunteer, or contractor or an individual to whom the employer has given a conditional offer of a contract, volunteer position, or employment.  The request shall be accompanied by a release signed by the current or prospective employee, volunteer, or contractor.  If that individual has a record of a substantiated report, the commissioner shall provide the registry information to the employer;

          (4)  To the commissioner of aging and disabilities, or the commissioner’s designee, for purposes related to the licensing or registration of facilities regulated by the department of aging and disabilities;

          (5)  To the commissioner of developmental and mental health services, or the commissioner’s designee, for purposes related to oversight and monitoring of persons who are served by or compensated with funds provided by the department of developmental and mental health services, including persons to whom a conditional offer of employment has been made;

          (6)  Upon request or when relevant to other states’ adult protective services offices; and

          (7)  Upon request or when relevant to other states’ child protection agencies.

(e)(c)  Volunteers shall be considered employees for purposes of this section.

     (d)  Disclosure of information or records used or obtained in the course of providing services to prevent child abuse or neglect or to treat abused or neglected children and their families by one member of a multidisciplinary team to another member of that team shall not subject either member of the multidisciplinary team, individually, or the team as a whole, to any civil or criminal liability notwithstanding any other provision of law.

     (e)  “Employer,” as used in this section, means a person or organization who employs or contracts with one or more individuals to care for children or vulnerable adults, on either a paid or volunteer basis.

Sec. 136c.  33 V.S.A. § 6911(c)(3) is amended to read:

          (3)  an employer if such information is used to determine whether to hire or retain a specific individual providing care, custody, treatment, or supervision of children or vulnerable adults.  “Employer,” which, as used in this section, means a person or organization who employs or contracts with one or more individuals to care for children or vulnerable adults, on either a paid or volunteer basis.  The employer may submit a request concerning a current employee, volunteer, or contractor or an individual to whom the employer has given a conditional offer of a contract, volunteer position, or employment.  The request shall be accompanied by a release signed by the current or prospective employee, volunteer, or contractor.  If that individual has a record of a substantiated report, the commissioner shall provide the registry information to the employer;

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

                   Personal services                             1,722,719

                   Operating expenses                            407,257

                   Grants                                           29,347,481

                        Total                                        31,477,457

               Source of funds

                    General fund                                    7,667,048

                   Transportation fund                              75,000

                   Special funds                                      932,000

                   Federal funds                                22,726,157

                   Interdepartmental transfer                     77,252

                        Total                                        31,477,457

     (a)  Of the above appropriation, $190,000.00 shall be used to support professional development activities.

Sec. 137a.  APPROPRIATION; BRIGHT FUTURES FUND

     (a)  The sum of $250,000.00 is appropriated from the general fund to the department of social and rehabilitation services to be deposited into the building bright spaces for bright futures fund.

Sec. 138.  33 V.S.A. § 3531 (c) is amended to read:

     (c)  The commissioner shall award grants from the fund to eligible applicants for development and expansion of child care facilities in the state. Funds appropriated for this program shall be used by the commissioner to award grants to eligible applicants for the development and expansion of child care options and community programs targeted for youths aged 14 through 18.  These options may include recreational programs and related equipment or facilities, development or expansion of child care facilities and community‑based programs which address specific child care and youth program needs of the applicant region.  The commissioner shall establish, by rule, criteria, conditions and procedures for awarding such grants and administering this program.

Sec. 138a.  23 V.S.A. §  304c (d) is amended to read:

     (d)  The department of motor vehicles shall not be charged by the department of corrections for the development and production of the bright futures fund license plates.

Sec. 139.  Social and rehabilitation services - Woodside rehabilitation center

                   Personal services                             2,200,621

                   Operating expenses                            376,071

                        Total                                          2,576,692

               Source of funds

                   General fund                                    2,528,455

                   Interdepartmental transfer                     48,237

                        Total                                          2,576,692

Sec. 140.  Social and rehabilitation services - disability determination services

                   Personal services                             2,817,296

                   Operating expenses                            457,331

                        Total                                          3,274,627

               Source of funds

                   Federal funds                                  3,029,482

                   Interdepartmental transfer                   245,145

                        Total                                          3,274,627

Sec. 141.  Social and rehabilitation services - family support child care

                   Grants                                             1,489,949

               Source of funds

                   General fund                                       812,635

                   Federal funds                                     677,314

                        Total                                          1,489,949

Sec. 142.  Prevention, assistance, transition, and health access - administration

                   Personal services                           26,626,259

                   Operating expenses                         5,063,948

                   Grants                                                976,737

                        Total                                        32,666,944

               Source of funds

                   General fund                                  12,590,631

                   Special funds                                   1,962,319

                   Federal funds                                18,113,994

                        Total                                        32,666,944

     (a)  Notwithstanding the requirements in 3 V.S.A. § 2222 that require an independent expert review of any recommendation for information technology activity, the department of prevention, assistance, transition, and health access shall be exempt from the operation of the statute when the department is engaged in multi-state coordinated activities that utilize a technology system common to all the participating states.

     (b)  To implement the program changes in section 147 of this bill, system development services may be completed by a designated contractor.  Adherence to 3 V.S.A. § 2222(g) is not required.  The commissioner of PATH may negotiate a sole source contract to meet the implementation deadlines in this act.

Sec. 143.  Prevention, assistance, transition, and health access - reach up

                   Grants                                           42,809,980

               Source of funds

                   General fund                                  15,648,867

                   Special funds                                   2,200,000

                   Federal funds                                24,961,113

                        Total                                        42,809,980

Sec. 144.  Prevention, assistance, transition, and health access - aid to aged, blind and disabled

                   Personal services                             1,231,308

                   Grants                                             9,132,124

                        Total                                        10,363,432

               Source of funds

                   General fund                                  10,363,432

Sec. 144a.  AABD APPROPRIATION; ONE-TIME SUPPLEMENTAL

                  CHECK

     (a)  The sum of $210,500.00 is appropriated from the general fund to the department of PATH which shall be used to provide a one-time supplemental check to individuals and couples in the independent living arrangement and receiving AABD as of September 1, 2003.  The department shall issue the check by November 30, 2003.  The amount of the payment shall be determined by subtracting administrative costs from the appropriation for the one-time supplemental check and dividing the remainder into two amounts proportionate to the actual maximum payments for this living arrangement, regardless of the value of the AABD beneficiary’s actual ongoing payment amount.

Sec. 145.  FUND APPROPRIATION AND TRANSFER

     (a)  The sum of $68,550,857.00 is appropriated and transferred from the general fund to the health access trust fund in fiscal year 2004.

     (b)  The sum of $17,250,000.00 is appropriated and transferred from the tobacco litigation settlement fund to the health access trust fund in fiscal year 2004.

     (c)  The sum of $1,000,000.00 is appropriated on a one-time basis and transferred from the general fund to the health access trust fund in fiscal year 2004.

Sec. 146.  FISCAL YEAR 2003 AND 2004 SETTLEMENT FUND

                BALANCE

     (a)  Notwithstanding 18 V.S.A. § 9502(b), or any other law to the contrary, any unexpended and unencumbered balance in the tobacco litigation settlement fund in fiscal year 2003 shall, at the close of the fiscal year, be transferred to the Vermont health access trust fund.

     (b)  Notwithstanding 18 V.S.A. § 9502(b), or any other law to the contrary, any unexpended and unencumbered balance in the tobacco litigation settlement fund in fiscal year 2004 shall, at the close of the fiscal year, be transferred to the Vermont health access trust fund.

Sec. 147.  Prevention, assistance, transition, and health access - Medicaid

                   Personal services                           16,677,343

                   Grants                                         499,770,170

                        Total                                      516,447,513

               Source of funds

                   Special funds                               193,206,462

                   Federal funds                              323,241,051

                        Total                                      516,447,513

     (a)  HIV/AIDS health insurance assistance program.

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

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

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

          (4)  Expenditures under this program shall not exceed $55,000.00 in fiscal year 2004.

     (b)  The department is authorized to extend indefinitely the rules for VHAP, Medicaid and all other health assistance programs administered by the department that suspended for fiscal year 2003 coverage for adults for eyewear.

     (c)  The department is authorized to amend the rules for the Medicaid and VHAP program to eliminate the six-month period of guaranteed eligibility for individuals enrolled in managed care.

     (d)  VHAP, premium-based.

          (1)  The department is authorized to amend the rules for the VHAP program to eliminate coinsurance and co-payment requirements except for the co-payments of $25.00 for each medically necessary emergency room visit.

          (2)  The department shall establish per individual premiums for the VHAP Uninsured program for the following brackets of income for the VHAP group as a percentage of federal poverty level (FPL):

               (A)  Income less than or equal to 50 percent of FPL: $4.00 per month.

               (B)  Income greater than 50 percent and less than or equal to 75 percent of FPL: $10.00 per month.

               (C)  Income greater than 75 percent and less than or equal to 100 percent of FPL: $35.00 per month.

               (D)  Income greater than 100 percent and less than or equal to 150 percent of FPL: $45.00 per month.

               (E)  Income greater than 150 percent and less than or equal to 185 percent of FPL: $65.00 per month.

(3)  The department shall establish per household premiums for the working people with disabilities program for the following brackets of income for the Medicaid group as a percentage of federal poverty level (FPL):

(A)  Income greater than 185 percent of FPL and less than or equal to 225 percent of FPL: $50.00 per month.

     (B)  Income greater than 225 percent of FPL and less than or equal to 250 percent of FPL, without other health insurance coverage:  $75.00 per month.

     (C)  Income greater than 225 percent of FPL and less than or equal to  250 percent of FPL, with other health insurance coverage: $60.00 per month.

(e)  VHAP-Rx, VScript and VScript expanded; cost-sharing and premiums.

          (1)  The department is authorized to amend the rules for VHAP-Rx, VScript and VScript expanded to eliminate deductibles and co-payment requirements.

          (2)  The department shall establish a per individual premium of $13.00 per month for beneficiaries in the VHAP-Rx program.

          (3)  The department shall establish a per individual premium of $17.00 per month for the VScript program.

          (4)  The department shall establish a per individual premium of $35.00 per month for beneficiaries in the VScript expanded program.

     (f)  Dr. Dynasaur and SCHIP premium changes.

          (1)  The department is authorized to amend the rules for individuals eligible for Dr. Dynasaur under the federal Medicaid and SCHIP programs to require beneficiary households to pay a monthly premium based on the following:

               (A)  for individuals living in households whose incomes are greater than 225 percent of FPL and less than or equal to 300 percent of FPL, and who have no other insurance coverage: $70.00 per household per month.

               (B) for individuals living in households whose incomes are greater than 225 percent of FPL and less than or equal to 300 percent of FPL, and who have other insurance coverage: $35.00 per household per month.

               (C) for individuals living in households whose incomes are greater than 185 percent of FPL and less than or equal to 225 percent of FPL: $25.00 per household per month.

          (2)  The commissioner of prevention, assistance, transition and health access shall implement a premium assistance program for those SCHIP beneficiaries whose families have access to employer-sponsored health insurance.  If the employer-sponsored insurance meets the federal requirements for coverage, families shall pay $40.00 per month and the program shall pay the balance of the employee share.  Prior to implementing this program, the commissioner shall report to the health access oversight committee and the house and senate committees on appropriations regarding the cost-effectiveness of this initiative, including the cost of administering the program compared to potential savings to the Medicaid program. 

     (g)  Premium billing, collections and nonpayment.

          (1)  The commissioner shall make such changes in the billing and collection process as are necessary to minimize administrative effort and uncollected premiums effective January 1, 2004.  These changes shall include:

(A)  Shifting from retrospective to prospective billing.

               (B)  Continuing the current billing approach for all groups currently paying program fees until the new billing approach is approved and ready to be implemented.

               (C)  Adjusting the billing cycle for premiums to facilitate efforts by beneficiaries to stay current and avoid delinquencies.

               (D)  Requiring beneficiaries to pay prospectively a premium equivalent to one month of coverage before initial enrollment, so that:

                        (i)  if a premium is received and processed prior to the first day of the current month, then full coverage shall begin on the first day of the current month;

                        (ii)  if a premium is received and processed after the first day of the current month, then full coverage shall begin on the first day of the following month;

                        (iii)  for applicants seeking VHAP coverage, limited coverage (essential hospital, physician and pharmaceutical coverage) shall be provided at no cost between the date that the beneficiary is determined eligible and the date that full coverage begins, contingent upon receipt of premium payment;

                        (iv)  beneficiaries shall receive a notice of eligibility determination that includes a description of the limited coverage and a warning that if the premium is not paid, the beneficiary shall be responsible for all bills incurred in the interim;

                        (v)  if payment of the premium is not received by the due date, no payment shall be made for any care received after eligibility is determined;

                        (vi)  if a beneficiary’s coverage is cancelled and the beneficiary attempts to reenroll within 12 months, no limited benefit coverage shall be provided, except under the following circumstances:

                             (aa)  the applicant or spouse had employer or university-sponsored insurance that terminated;

                             (bb)  the applicant’s household income dropped below 75 percent of FPL;

                             (cc)  the applicant established residence in another state for more than 30 days and subsequently returned to Vermont;

(dd)  medical incapacity during the period when premium payments were due;

(vii)  following payment of the initial premium, premium bills for subsequent months shall be sent at least 25 days before enrollment may be closed;

(viii) for subsequent months, notice shall be sent at least 10 days before closure for nonpayment of premiums;

(ix)  for subsequent months, eligibility shall be reinstated if payment of premiums is received by the last day of month;

(x)  for the VHAP Pharmacy, VScript and VScript expanded programs, the prospective billing mechanism described above in Sec. 147 (g)(1)(D)(i)-(ii) shall apply.  Limited coverage, described above in Sec. 147 (g)(1)(D)(iii), is not available.  If a beneficiary’s coverage is cancelled for nonpayment of premium due to medical incapacity during the period when premium payments were due, the department will provide coverage between the date that the coverage lapsed due to nonpayment of the premium and the last day of the current month, provided that the beneficiary will be responsible for all bills incurred during this period if all premium payments due are not received by the last day of the current month;

(xi)  for pregnant women and children participating in the Dr. Dynasaur, underinsured children, and SCHIP programs, the prospective billing mechanism described above in Sec. 147 (g)(1)(D)(i)-(ii) shall apply. Limited coverage, described above in Sec. 147 (g)(1)(D)(iii), is not available.  Provisions of federal law permitting retroactive coverage shall apply, subject to payment of premiums for any such retroactive coverage sought by the beneficiary;

(xii) for beneficiaries participating in the Working People with Disabilities program, the prospective billing mechanism described above in Sec. 147 (g)(1)(D)(i)-(ii) shall apply.  Limited coverage, described above in Sec. 147 (g)(1)(D)(iii), is not available.  Provisions of federal law permitting retroactive coverage shall apply, subject to payment of premiums for any such retroactive coverage sought by the beneficiary.  If a beneficiary’s coverage is cancelled and the beneficiary attempts to reenroll within twelve months, contingent upon federal approval, three-month retroactive coverage will not be provided, except under the following circumstances:

(aa)  the applicant or spouse had employer or university-sponsored insurance that terminated;

(bb)  the applicant’s household income dropped below 75% of FPL;

(cc)   the applicant established residence in another state for more than 30 days and subsequently returned to Vermont;

(dd)  medical incapacity during the period when premium payments were due.

          (2)  The commissioner of PATH shall implement systems permitting beneficiaries to pay premiums by authorizing automatic or electronic deductions from income, assets or benefits and assigning tax refunds or other awards to the department as soon as administratively feasible and shall report on the progress of these initiatives to the legislative health access oversight committee and the house and senate committees on appropriations during the budget adjustment process.  Where appropriate, beneficiaries may designate another individual as an additional recipient of any premium delinquency notices.  The commissioner shall seek permission from CMS, as necessary, to implement the mechanism to mitigate adverse selection described in Sec. 147(g)(1)(D) above.  The commissioner of PATH shall also explore the viability of any alternate mechanisms to mitigate adverse selection, and report on the availability of those alternatives to the Legislative Health Access Oversight Committee.  The commissioner shall ensure that any mechanisms to mitigate adverse selection shall not include preexisting condition exclusions.

    (3)  The department shall monitor and evaluate the enrollment and disenrollment in each of the programs subject to premiums, record the incidence of terminated coverage as a result of failure to pay premiums, evaluate the effect that premium levels are having on enrollment, and analyze the degree to which the programs are being affected by adverse selection.  The department shall submit a report to the house and senate committees on appropriations and health and welfare and the health access oversight committee at the end of each quarter.

(4)  The commissioner of the department of prevention, assistance, transition and health access shall adopt rules to clarify the following: 

(A)  The general and emergency assistance programs do not cover medical needs of applicants who are eligible for government-sponsored health insurance that would have covered the need when they do not have such coverage because of either or both of the following reasons:

(i)  failure to pay a premium for government-sponsored health insurance; or

(ii)  failure to comply with any other administrative eligibility requirement for premium-based government-sponsored health insurance.

(B)  The general and emergency assistance programs do not cover payment of premiums for private or government-sponsored health insurance.

          (5)  Premium means a nonrefundable charge which must be paid by an applicant as a condition of initial and ongoing enrollment.

          (6)  To minimize potential negative impacts on health program participation due to the increased use of premium-based cost sharing, the commissioner shall:

               (A)  Educate program recipients about changes in cost sharing by:

                   (i)  Updating brochures or creating information materials, as appropriate, for all programs and updating the Pharmacy Programs Application found in the Vermont state tax booklet, to explain the new cost-sharing system;

                   (ii)  Collaborating with local nonprofit agencies working with low income, elderly and disabled Vermonters by providing outreach to beneficiaries on the program changes described above;

                   (iii)  Notifying current program recipients of proposed changes in cost sharing no later than November 15, 2003.

               (B)  Provide drafts of all notices and informational materials to the State Health Care Ombudsman for comment and review prior to adoption of these materials.

               (C)  The department shall report to the health access oversight committee on its premium implementation.

          (7)  Subsections (d)(1) and (2) and (e) of this section shall be effective January 1, 2004, unless it is otherwise feasible for the department to implement these sections earlier.

          (8)  Increased premiums specified in subsections (d)(3) and (f) shall be billed as increased program fees effective on July 1, 2003.  Unless feasible for the department to implement subsection (d)(3) and (f) earlier, beginning January 1, 2004, the fees shall be billed as premiums.

          (9)  Prior to implementing the $4.00 premium established in subsection (d)(2)(A), the commissioner of the department of prevention, assistance, transition and health access shall make recommendations to the legislative health access oversight committee if the commissioner determines that implementation of the premium will result in a substantial reduction in enrollment.

     (h)  Of the above appropriation, $750,000.00 including state funds and any matching federal funds shall be allocated to increase the reimbursement rate paid to dentists participating in the Medicaid program.

     (i)  Of the above appropriation, $200,000.00 of state funds and any federal matching funds shall be used to increase rates paid to residential care facilities above those paid in fiscal year 2003.

     (j)  Except for beneficiaries who are pregnant or residents of nursing homes, the department is authorized to amend the rules for the Medicaid program to require beneficiaries of SSI-related Medicaid age 18 or older and beneficiaries of ANFC-related Medicaid age 21 or older to pay a $3.00 co-payment for each outpatient hospital visit and $75.00 for each hospital inpatient visit.

(k)  The department shall amend its SSI-related Medicaid resource rules to provide that United States Savings Bonds are considered available for Medicaid eligibility purposes beginning on the date of purchase.  During the first retention period following the date of issue, bonds are valued for eligibility purposes as follows:

          (1)  Bonds issued at face value, including, but not limited to, Series I and Series HH bonds, are valued at face value.

          (2)  Bonds issued for less than face value, including, but not limited to, Series EE bonds, are valued at the purchase price.

          (3)  This rule shall apply to United States Savings Bonds purchased or exchanged on or after the effective date of the new rule.

     (l)  The department shall amend the regulations for all its health care assistance programs to:

          (1)  eliminate continued benefits while an appeal is pending when benefits have been reduced or eliminated based on a change mandated by the general assembly, U.S. Congress, the Center for Medicare and Medicaid Services, or the courts.

          (2)  require payment of premiums while an appeal is pending as a condition of continued coverage during the appeal period when an individual has filed an appeal.  Individuals appealing the amount of their premium shall pay at the billed amount until the dispute is resolved.

(3) The provisions of this subsection shall take effect upon passage.

     (m)  Subject to the provisions of 32 V.S.A. §§ 704 and 704a, no program changes, including cessation of new enrollment or termination of existing recipients, shall be made to VHAP RX, VScript, or VScript Expanded based on any waiver changes or denials for federal matching funds to VScript Expanded without approval of the joint fiscal committee.

     (n)  In that Dartmouth Hitchcock Medical Center provides high-quality health care to Vermonters, the department is directed to conduct discussions with representatives of the Dartmouth Hitchcock Medical Center and the Vermont Association of Hospitals and Health Systems with the aim of developing and implementing a Medicaid reimbursement formula that would maintain the Medicaid rate parity that currently exists between these organizations.

     (o)       Of the state fund amounts appropriated by this section, $11,974,833.00 of state funds shall be allocated for disproportionate share hospital  payments to Vermont hospitals and $15,136,450.00 of state funds and federal matching funds shall be allocated for a one-time cost of service increase for Vermont hospitals only.  In addition, the commissioner of prevention, assistance, transition, and health access shall revise the Vermont hospital inpatient payment method to establish a new base for the mid-sized hospital class, including an inflation factor; and rebase Grace Cottage Hospital, Gifford Memorial Hospital, Mount Ascutney Hospital, and Porter Hospital to an all-inclusive per diem amount reasonably related to the Medicare critical access hospital rate.  The department shall amend the Medicaid state plan to provide for an annual hospital inflation factor that shall be contingent upon and subject to appropriation by the general assembly.

     (p)  The commissioner of prevention, assistance, transition, and health access shall evaluate the feasibility of sending each beneficiary of the VHAP Uninsured, VHAP-Rx, VScript and VScript expanded programs a periodic statement reporting the retail cost of the prescriptions received by the beneficiary, compared to the premium or other cost sharing borne by the beneficiary.  The department may implement such a reporting system forthwith if the commissioner determines that the amount appropriated by this section and the administrative resources necessary to implement such a reporting system are sufficient.  If the commissioner determines that additional resources are necessary to implement such a system, a report describing the commissioner’s findings and recommendations shall be submitted to the general assembly no later than January 15, 2004.

     (q)  The department is authorized to establish premium-based programs under the provisions of this section notwithstanding any premium requirements, limitations or other provisions to the contrary in 33 V.S.A. §§ 1901, 1993 and 1994 or other provisions of law.

     (r)  It is the intent of the legislature that in fiscal year 2005, the state funds allocated for residential care facilities be increased by $200,000.00.

Sec. 147a.  VERMONT HEALTH ACCESS PLAN STUDY

     (a)  The department of prevention, assistance, transition, and health access in consultation with the department of banking, insurance, securities, and health care administration and the joint fiscal office shall study and prepare a report on the advantages, benefits and costs of a Vermont health access program to offer health care coverage for Vermonters who do not have access to a group health care plan and for small businesses, including sole proprietorships.  The program would establish premium amounts so that total revenue would be sufficient to pay for the cost of benefits, claims, and program administration, including the cost of reinsurance and such reserves as necessary.  In addition, premiums shall be sufficient to provide payments to providers at levels 10 percent greater than levels paid under the Medicare program.  The report shall include draft legislation necessary to authorize the program, if feasible, and shall be submitted to the health access oversight committee and the house and senate committees on health and welfare on or before December 1, 2003.

Sec. 148.  Prevention, assistance, transition, and health access - general assistance

                   Grants                                             4,376,260

               Source of funds

                   General fund                                    3,264,939

                   Special funds                                                 1

                   Federal funds                                  1,111,320

                        Total                                          4,376,260

     (a)  Of the above appropriation, $527,000.00 in federal TANF funds and $50,000.00 in general funds is allocated specifically for assistance to families who demonstrate they are faced with a reasonably preventable loss of housing and who meet state requirements for this assistance, as established by regulation.  Of this $577,000.00, the $50,000.00 portion appropriated from general funds shall be used for the “Category II” rental assistance program.  Assistance under this provision is not an entitlement and shall cease upon expenditure of these allocated funds.

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

Sec. 149.  Prevention, assistance, transition, and health access - home heating fuel assistance/LIHEAP

                   Personal services                                  20,000

                   Operating expenses                              90,000

                   Grants                                             8,352,075

                        Total                                          8,462,075

               Source of funds

                   Special funds                                   8,462,075

     (a)  Of the funds appropriated for home heating fuel assistance/LIHEAP in this act, no more than $350,000.00 shall be expended for crisis fuel direct service/administration exclusive of statewide after-hours crisis coverage.

Sec. 149a.  WEATHERIZATION FUND ANALYSIS

     (a)  On or before December 15 of each year, the department of public service and the agency of human services in consultation with the joint fiscal office shall develop and submit a report to the senate and house committees on appropriations which provides:

          (1)  any projected or actual reserves in the special fund established pursuant to 33 V.S.A. § 2503, the expenditure of which would not adversely impact ongoing levels of weatherization services; and

          (2)  an analysis of the projected need of households eligible for fuel assistance in meeting their heating bills in the current heating season as compared to previous heating seasons.  A heating season shall be defined as the six months from October through March.

Sec. 150.  PREVENTION, ASSISTANCE, TRANSITION, AND HEALTH

                ACCESS - HOME HEATING FUEL ASSISTANCE/LIHEAP

     (a)  All federal funds granted to the state for home heating fuel assistance under the low income home energy assistance program (LIHEAP) or other similar federal program in fiscal year 2004 and all unexpended LIHEAP funds granted to the state in fiscal year 2003 are hereby transferred to the home heating fuel assistance trust fund for the provision of home heating fuel assistance, including program administration, under 33 V.S.A. chapter 26.

     (b)  For the purpose of a crisis set-aside, seasonal home heating fuel assistance through December 31, 2003, and program administration, the commissioner of finance and management shall transfer $2,550,000.00 from the home weatherization assistance trust fund to the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are not available.  An equivalent amount shall be returned to the home weatherization trust fund from the home heating fuel assistance trust fund to the extent that federal LIHEAP or similar federal funds are received.  Should a transfer of funds from the home weatherization assistance trust fund be necessary for the 2003-2004 crisis set-aside and seasonal home heating fuel assistance through December 31, 2003, and LIHEAP funds awarded as of December 31, 2003 for fiscal year 2004 do not exceed $2,550.000.00, subsequent payments under the home heating fuel assistance program shall not precede January 30, 2004.  Notwithstanding any other provision of law, payments authorized by the office of home heating fuel assistance shall not exceed funds available, except that for fuel assistance payments made through December 31, 2003, the commissioner of finance and management may anticipate receipts into the home weatherization assistance trust fund.

Sec. 151.  Prevention, assistance, transition, and health access - food stamp cash out

                   Grants                                             5,557,341

               Source of funds

                   Federal funds                                  5,557,341

Sec. 152.  THE ADOPTION OF PREVENTION, ASSISTANCE,

                 TRANSITION, AND HEALTH ACCESS RULES

     (a)  Notwithstanding any provisions to the contrary in 3 V.S.A. chapter 25, the commissioner of prevention, assistance, transition, and health access may adopt rules in order that changes reflected in Sec. 147 subsections (b), (c), (d)(3), (f)(1), (j), (k) and (l) of this act shall be implemented by July 1, 2003.  These rules shall be effective upon filing with the secretary of state, and the changes authorized therein shall be implemented no sooner than 10 days following the mailing of adverse action notice and shall have the full force and effect of rules adopted pursuant to 3 V.S.A. chapter 25.  Any such rules filed by the commissioner with the secretary of state shall be deemed to be in full compliance with 3 V.S.A. § 843 and shall be accepted by the secretary of state, if filed with a certification by the commissioner that the rule is required to meet the purposes of this section.  Rules adopted under this subsection shall remain in effect until December 31, 2003 or until amended by rules adopted pursuant to the provisions of Sec. 152a of this act.  Notwithstanding the provisions to the contrary of 3 V.S.A. chapter 25, the commissioner may file prior to and adopt, effective as soon as promulgated, all rules necessary to exempt all individuals domiciled in the state of Vermont from the implementation of Sec. 115(a) of Public Law 104-193 through June 30, 2004.

Sec. 152a.  THE ADOPTION OF PREVENTION, ASSISTANCE,

                   TRANSITION, AND HEALTH ACCESS EXPEDITED RULES

     (a)  The commissioner of prevention, assistance, transition, and health access may adopt rules under the expedited rule-making procedures provided in this section in order that changes reflected in this act to programs administered by the department of prevention, assistance, transition, and health access shall be implemented by January 1, 2004, or as soon as the rules are adopted. 

     (b)  Notwithstanding any provisions to the contrary in 3 V.S.A. chapter 25, the commissioner of prevention, assistance, transition, and health access may file prior to and adopt, effective as soon as filed with the secretary of state and the legislative committee on administrative rules, such rules as are necessary to complete implementation of Sec. 147 (f)(1) of this act, as well as Sec. 147 (b) through (g), (j) through (l) of this act.  Such rules shall be adopted by:

          (1)  filing proposed rules no later than September 2, 2003 and publishing a notice of proposed rules on September 4 and September 11 in three daily newspapers with the highest average circulation in the state, listing all rules to be adopted by this process and providing for a 10-day public comment period including any weekends or holidays that fall within the period;

          (2)  filing final proposed rules with the secretary of state and legislative committee on administrative rules no later than the third Thursday following the close of the public comment period;

          (3)  responding to an objection to the final proposed rules, or receiving notice of approval, by the legislative committee on administrative rules, under the provisions of 3 V.S.A. § 842, no later than the second Thursday following filing of the final proposed rules;

          (4)  filing the adopted rules with the secretary of state and the legislative committee on administrative rules two business days following approval, or the expiration of 14 days following an objection, by the legislative committee on administrative rules; and

          (5)  mailing notice to beneficiaries affected by the rule changes by November 15, 2003, following filing of the adopted rules.

     (c)  The rules shall be effective upon filing with the secretary of state and the legislative committee on administrative rules, and shall be implemented no sooner than 10 days following the mailing of adverse action notice and shall have the full force and effect of rules adopted pursuant to 3 V.S.A. chapter 25.   Any such rules filed by the commissioner with the secretary of state and the legislative committee on administrative rules shall be deemed to be in full compliance with 3 V.S.A. § 843 and shall be accepted by the secretary of state, if filed with a certification by the commissioner that the rules are required to meet the purposes of this section.

Sec. 153.  Developmental and mental health services - central office

                   Personal services                             2,153,430

                   Operating expenses                            762,406

                        Total                                          2,915,836

               Source of funds

                   General fund                                    1,228,665

                   Federal funds                                  1,687,171

                        Total                                          2,915,836

Sec. 154.  Developmental and mental health services - community mental health

                   Personal services                             2,581,865

                   Operating expenses                            352,039

                   Grants                                           78,696,687

                        Total                                        81,630,591

               Source of funds

                   General fund                                  24,304,227

                   Special funds                                   6,933,073

                   Federal funds                                47,248,125

                   Interdepartmental transfer                3,145,166

                        Total                                        81,630,591

     (a)  Of the above appropriation, $907,093.00 shall be used for wage and benefit increases for developmental and mental health services providers and $227,250.00 in general funds with any available federal matching funds shall be used to provide operating expense increases for developmental and mental health services providers.

Sec. 155.  Developmental and mental health services - developmental services

                   Personal services                             3,009,458

                   Operating expenses                            480,940

                    Grants                                           87,249,557

                        Total                                        90,739,955

               Source of funds

                   General fund                                  34,085,237

                   Special funds                                      905,890

                   Federal funds                                54,655,528

                   Interdepartmental transfer                1,093,300

                        Total                                        90,739,955

     (a)  Of the above appropriation, $987,867.00 shall be used for wage and benefit increases for developmental and mental health services providers and $75,750.00 in general funds with any available federal matching funds shall be used to provide operating expense increases for developmental and mental health services providers.

Sec. 156.  Developmental and mental health services - Vermont state hospital

                   Personal services                           12,106,115

                   Operating expenses                         1,450,987

                   Grants                                                143,000

                        Total                                        13,700,102

               Source of funds

                   General fund                                    4,732,450

                    Special funds                                      160,000

                   Federal funds                                  8,807,652

                        Total                                        13,700,102

Sec. 157.  Developmental and mental health services - employment services

                   Grants                                             1,498,268

               Source of funds

                   General fund                                       610,390

                   Federal funds                                     860,499

                   Interdepartmental transfer                     27,379

                        Total                                          1,498,268

Sec. 158.  Aging and disabilities - administration and support

                   Personal services                           14,148,789

                   Operating expenses                         2,406,051

                        Total                                        16,554,840

               Source of funds

                   General fund                                    4,477,329

                   Special funds                                      439,669

                   Federal funds                                10,814,857

                   Interdepartmental transfer                   822,985

                        Total                                        16,554,840

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

Sec. 159.  Aging and disabilities - division of advocacy and independent living

                   Grants                                           20,969,418

               Source of funds

                   General fund                                    8,074,725

                   Transportation fund                            522,000

                   Special funds                                      751,981

                   Federal funds                                11,545,712

                   Interdepartmental transfer                     75,000

                        Total                                        20,969,418

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

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

     (c)  Of the above general fund appropriation for the adult day program, $25,000.00 shall be used to support expenditures that are not eligible for Medicaid reimbursement.

Sec. 160.  Aging and disabilities - blind and visually impaired

                   Grants                                             1,287,237

               Source of funds

                   General fund                                       540,106

                   Special funds                                      120,000

                   Federal funds                                     627,131

                        Total                                          1,287,237

Sec. 161.  Aging and disabilities - vocational rehabilitation

                   Grants                                             5,314,574

               Source of funds

                   General fund                                    1,479,195

                   Special funds                                        80,000

                   Federal funds                                  3,355,379

                   Interdepartmental transfer                   400,000

                        Total                                          5,314,574

Sec. 162.  Aging and disabilities - TBI home and community based waiver

                   Grants                                             2,251,760

               Source of funds

                   General fund                                       862,852

                   Federal funds                                  1,388,908

                        Total                                          2,251,760

     (a)  The state shall allocate the appropriation for the traumatic brain injured waiver for fiscal year 2004 in the following manner: rehabilitation program, 51 slots; long-term program, 26 slots.  The number of long-term program slots may be increased by no more than eight, if matching funds are available to support the additional slots.

Sec. 162a.  GRANT AUTHORIZED

(a)  The department of aging and disabilities is authorized to grant to the Vermont development credit union up to $700,000.00 from the adaptive equipment revolving fund, established pursuant to 33 V.S.A. chapter 77.  The grant shall require that:

(1)  the funds be used for the same purposes as those authorized by 33 V.S.A. chapter 77;

(2)  a report be provided to the department annually on the status and use of the funds;

(3)  lending criteria be used that are no more restrictive than the criteria used by the department in administering the adaptive equipment revolving fund; and

(4)  the total funds made available for loans to disabled persons to purchase adaptive equipment exceed the amount of the grant.

(b)  After issuance of the grant, the funds granted to the Vermont development credit union shall no longer be considered part of the adaptive equipment revolving fund for purposes of 33 V.S.A. chapter 77.

Sec. 163.  Office of economic opportunity

                   Personal services                                368,217

                   Operating expenses                              78,720

                   Grants                                             5,012,934

                        Total                                          5,459,871

               Source of funds

                   General fund                                    1,164,813

                   Special funds                                        57,867

                   Federal funds                                  3,858,004

                   Interdepartmental transfer                   379,187

                        Total                                          5,459,871

     (a)  Of the above general fund appropriation, $485,000.00 shall be granted to community agencies for homeless assistance by preserving existing services or increasing resources available statewide.  These funds may be granted alone or in conjunction with federal McKinney emergency shelter funds.  Grant decisions shall be made with assistance from the coalition of homeless Vermonters.

Sec. 163a.  FOOD STAMP OUTREACH; ONE-TIME APPROPRIATION

     (a)  There is appropriated to the office of economic opportunity $15,000.00 of general funds in fiscal year 2004 for food stamp outreach.

Sec. 164.  Office of economic opportunity - weatherization assistance

                   Personal services                                149,237

                   Operating expenses                              30,761

                   Grants                                             6,014,475

                        Total                                          6,194,473

               Source of funds

                   Special funds                                   4,940,029

                   Federal funds                                  1,254,444

                   Interdepartmental transfer                              0

                        Total                                          6,194,473

     (a)  Of the above special fund appropriation, $400,000.00 is for the replacement and repair of home heating equipment.

Sec. 165.  Corrections - administration

                   Personal services                             1,731,897

                   Operating expenses                            322,087

                   Grants                                                302,688

                        Total                                          2,356,672

               Source of funds

                   General fund                                    2,006,447

                   Federal funds                                     350,225

                        Total                                          2,356,672

Sec. 165a.  CORRECTIONS; REVIEW OF POSITIONS

     (a)  The department of corrections shall conduct an outside evaluation of the impact and effectiveness of the six Youthful Corrections Service Specialist positions that were added to the department in Sec. 280b(a)(1) of No. 63 of the Acts of 2001.  The commissioner of corrections shall report to the joint legislative corrections oversight committee established in Sec. 170d of No. 142 of the Acts of 2002 by January 15, 2004 on the findings and recommendation of this evaluation.

Sec. 166.  Corrections - parole board

                   Personal services                                217,971

                   Operating expenses                              65,555

                        Total                                             283,526

               Source of funds

                   General fund                                       283,526

     (a)  The corrections oversight committee established in Sec. 170d of No. 142 of the Acts of 2002 shall review the function and efficiency of the parole board and shall make recommendations as to the continued operation of the parole board to the general assembly by January 15, 2004.

Sec. 167.  Corrections - correctional education

                   Personal services                             2,945,248

                   Operating expenses                            422,210

                        Total                                          3,367,458

               Source of funds

                   General fund                                    2,837,133

                   Interdepartmental transfer                   530,325

                        Total                                          3,367,458

Sec. 168.  Corrections - correctional services

                   Personal services                           57,195,488

                   Operating expenses                       26,359,399

                   Grants                                             1,029,500

                        Total                                        84,584,387

               Source of funds

                   General fund                                  30,981,538

                   Transportation fund                         1,424,702

                   Special funds                                      549,500

                   Tobacco funds                                     87,500

                   Federal funds                                51,338,601

                   Interdepartmental transfer                   202,546

                        Total                                        84,584,387

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

     (b)  Of the above general fund appropriation, $580,000.00 is allocated for transitional housing activities.  To the greatest extent possible the housing and supervision services contained within this allocation shall be provided by contracts with community based organizations.  The department may use $250,000.00 of this allocation to design and implement up to five pilot projects, of which one each shall be in Bennington and Windham counties.  The pilot projects shall seek to supervise in the community offenders who would otherwise be incarcerated, particularly offenders under the age of 22.  The pilot project shall include the following services:

          (1)  education under the community high school of Vermont;

          (2)  vocational training and career development;

          (3)  structured recreational services;

          (4)  substance abuse counseling;

          (5)  involvement in local restorative justice programs.

     (c)  Of the above general fund appropriation, $150,000.00 is appropriated for the continuation of the vocational training program for offenders, created in Sec. 2(a)(2)(A) of No. 148 of the Acts of 2000, to assist in the offenders’ successful transition to work upon release from custody in construction and other trades and industries in the state.

     (d)  The appropriations in this section include $50,000,000.00 in one-time federal funds from the federal Jobs and Growth Tax Relief Reconciliation Act of 2003 (H.R. 2).  Should the amount paid Vermont and, pursuant to federal regulations, available for this purpose be less than $50,000,000.00, the federal appropriation shall be reduced and the general fund appropriation increased by the amount of the difference.

Sec. 168a.  APPROPRIATION; SOUTHERN STATE CORRECTIONAL

                   FACILITY START UP                                  

     (a)  There is appropriated $700,000.00 in general funds for the start up costs of the southern state correctional facility located in Springfield.

     (b)  Management and inmate supervision functions shall be performed by Vermont state employees at the southern state correctional facility, located in Springfield.

Sec. 169.  28 V.S.A. § 816 is amended to read:

§ 816.  INMATE RECREATION FUND

     The department shall accept monies generated by commissions on telephone services, commissary sales, and sales of vended items at its correctional facilities and shall establish with such monies an inmate recreation special fund.  The fund shall be used to provide postage to inmates in a manner consistent with department policy.  The fund may be used, at the discretion of the commissioner, to hire persons or purchase services, equipment, and goods to establish or enhance recreation activities for inmates confined in any of the department’s facilities, and for voluntary inmate contributions that promote the restoration of crime victims or communities.  The inmates, through a process established by the inmate recreation fund committee, may also choose to create a loan fund, the operation of which shall be governed by rules adopted pursuant to chapter 25 of Title 3, from which offenders may borrow in order to help them obtain housing upon release from incarceration.

Sec. 170.  Corrections - correctional facilities- recreation

                   Personal services                                473,599

                   Operating expenses                            410,916

                        Total                                             884,515

               Source of funds

                   Special funds                                      884,515

Sec. 171.  Corrections - Vermont correctional industries

                   Personal services                             1,484,733

                   Operating expenses                         1,731,740

                        Total                                          3,216,473

               Source of funds

                   Internal service funds                       3,216,473

Sec. 172.  Children’s trust fund

                   Grant                                                 297,705

               Source of funds

                   General fund                                       102,705

                   Special funds                                        50,000

                   Federal funds                                     145,000

                        Total                                             297,705

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

Sec. 173.  Commission on women

                   Personal services                                174,809

                   Operating expenses                              64,342

                        Total                                             239,151

               Source of funds

                   General fund                                       234,151

                   Special funds                                          5,000

                        Total                                             239,151

Sec. 174.  Retired senior volunteer program

                   Grants                                                123,567

               Source of funds

                   General fund                                       123,567

Sec. 175.  Vermont veterans’ home - care and support services

                   Personal services                           10,556,446

                   Operating expenses                         2,477,395

                        Total                                        13,033,841

               Source of funds

                   General fund                                       964,171

                   Special funds                                   7,477,877

                   Federal funds                                  4,591,793

                        Total                                        13,033,841

     (a)  Notwithstanding 32 V.S.A. § 706(a)(1), the Vermont veterans’ home may transfer, with the approval of the secretary of administration, funds up to an amount equal to the general fund appropriation, to the department of prevention, assistance, transition, and health access - Medicaid for purposes of facilitating a Medicaid rate adjustment.

Sec. 176.  Vermont association for blind and visually impaired, inc.

                   Grants                                                  24,447

               Source of funds

                   General fund                                         24,447

Sec. 177.  Total human services                   1,280,308,910

               Source of funds

                   General fund                                296,929,282

                   Transportation fund                         2,021,702

                   Special funds                               236,249,039

                   Tobacco fund                                23,057,490

                   Federal funds                              709,005,433

                   Permanent trust                                    10,000

                   Internal service funds                       3,216,473

                   Interdepartmental transfer                9,819,491

                        Total                                   1,280,308,910

Sec. 178.  Employment and training

                   Personal services                           21,309,877

                   Operating expenses                         4,727,257

                   Grants                                             2,531,087

                        Total                                        28,568,221

               Source of funds

                   General fund                                       525,546

                   Special funds                                        15,000

                   Federal funds                                25,063,952

                   Interdepartmental transfer                2,963,723

                        Total                                        28,568,221

Sec. 179.  Employment and training - apprenticeship

                   Personal services                                512,351

                   Operating expenses                              54,362

                   Grants                                                160,000

                        Total                                             726,713

               Source of funds

                   General funds                                     581,713

                   Special funds                                      145,000

                        Total                                             726,713

Sec. 180.  Total employment and training          29,294,934

               Source of funds

                   General fund                                    1,107,259

                   Special funds                                      160,000

                   Federal funds                                25,063,952

                   Interdepartmental transfer                2,963,723

                        Total                                        29,294,934

Sec. 181.  Education - finance and administration

                   Personal services                             3,536,944

                   Operating expenses                         1,154,341

                   Grants                                           11,000,000

                        Total                                        15,691,285

               Source of funds

                   General fund                                    2,965,226

                   Special funds                                        19,943

                   Federal funds                                  1,239,618

                   Interdepartmental transfer              11,466,498

                        Total                                        15,691,285

     (a)  It is the intent of the legislature that the expenditure of Federal 21st Century Community Learning Funds shall make funding of licensed afterschool programs a priority.

     (b)  The department of education shall ensure that:

          (1)  the department of social and rehabilitation services shall be represented on all oversight boards and commissions related to Federal 21st Century Community Learning Funds;

          (2)  at least 50 percent of the representatives of such boards shall be from licensed afterschool programs;

          (3)  all grant information and promotion activities shall be carried out in a manner to maximize the successful participation of licensed afterschool programs as recipients in the grant process.

Sec. 182.  Education - standards and assessment

                   Personal services                             5,686,306

                   Operating expenses                            625,485

                   Grants                                             1,472,980

                        Total                                          7,784,771

               Source of funds

                   General fund                                    2,191,114

                   Special funds                                        34,000

                   Federal funds                                  5,439,879

                   Interdepartmental transfer                   119,778

                        Total                                          7,784,771

Sec. 183.  Education - education quality

                   Personal services                             6,853,846

                   Operating expenses                         1,755,270

                   Grants                                           95,102,592

                        Total                                      103,711,708

               Source of funds

                   General fund                                    5,339,453

                   Transportation fund                            648,155

                   Education fund                                8,376,070

                   Special funds                                   1,584,851

                   Federal funds                                86,338,983

                   Interdepartmental transfer                1,424,196

                        Total                                      103,711,708

     (a)  The appropriations in this section shall be authorized notwithstanding 16 V.S.A. §§ 1564, 1565, and 1566.

     (b)  Notwithstanding Sec. 163(b) of No. 63 of the Acts of 2001, the above appropriation includes $200,000.00 from the education fund for the purpose of awarding grants to technical centers to support innovative program development responding to emerging technologies and providing high skill, high wage employment.  The commissioner shall give special consideration to new and innovative agricultural programs.

Sec. 183a.  16 V.S.A. § 1531(c) is amended to read:

     (c)  For a school district which is geographically isolated from a Vermont technical center, the state board may approve a technical center in another state as the technical center which district students may attend.  In this case, the school district shall receive transportation assistance pursuant to section 1563 of this title and tuition assistance pursuant to section 1561(c) of this title.  Any student who is a resident in the Windham Southwest supervisory union and who is enrolled in the Charles H. McCann Technical School at public expense shall be considered to be attending an approved technical center in another state pursuant to this subsection, and, if the student is from a school district eligible for a small schools support grant pursuant to section 4015 of this title, the student’s full-time equivalency shall be computed according to time attending the school.

Sec. 183b.  REVERSION TO GENERAL FUND

     (a)  Notwithstanding any other provision of law, of the $433,000.00 appropriated in Sec. 251(a)(14) of No. 152 of the Acts of 2000, $130,524.00 shall revert to the general fund in fiscal year 2004.

Sec. 184.  Education - special education: formula grants

                   Grants                                           74,702,258

               Source of funds

                   Education fund                              74,702,258

     (a)  Notwithstanding the provisions of 16 V.S.A. § 2969 or any other provisions of law, the reimbursements and grants pursuant to 16 V.S.A. § 2967 for fiscal year 2004 costs incurred by school districts shall be paid partially from the fiscal year 2004 appropriation and partially from the fiscal year 2005 appropriation.  The fiscal year 2004 appropriation will cover the final reimbursements for fiscal year 2003, with the remainder available for reimbursements for fiscal year 2004 grants and reimbursements.  Funds distributed to school districts for fiscal year 2004 expenses, but to which the school districts were not entitled based on final reports for fiscal year 2004, shall not be considered as part of the total expenditures for fiscal year 2004 under the 60-percent state funding provision of 16 V.S.A. § 2967, as limited by Sec. 10 of No. 117 of the Acts of 2000.  Such funds held by local school districts shall be treated as expenditures in fiscal year 2005.

     (b)  Of the appropriation authorized in this section, and notwithstanding any other provision of law, an amount not to exceed $2,889,026.00 shall be used by the department of education in fiscal year 2004 as funding for 16 V.S.A. § 2967(b)(2)-(6).  In distributing such funds, the commissioner shall not be limited by the restrictions contained within 16 V.S.A. § 2969(c) and (d).  In addition to funding for 16 V.S.A. § 2967(b)(2)-(6), up to $150,000.00 may be used by the department of education for its participation in the higher education partnership plan.

Sec. 185.  EDUCATION - SPECIAL EDUCATION; SUCCESS BEYOND

                SIX

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

Sec. 186.  Education - state-placed students

                   Grants                                           10,689,886

               Source of funds

                   Education fund                              10,689,886

Sec. 187.  Education - adult education and literacy

                   Grants                                             3,590,310

               Source of funds

                   General fund                                    2,717,399

                   Federal funds                                     872,911

                        Total                                          3,590,310

Sec. 187a.  ADULT EDUCATION AND LITERACY FUNDING; 16-19

                   YEAR OLDS

     (a)  On or before January 15, 2004, the commissioner of education shall recommend to the senate and house committees on appropriations and education a method by which school districts organized to provide secondary education, including grade 12, will contribute to the funding of adult education for each resident student who withdraws during the school year and enrolls in an adult education and literacy program in Vermont prior to the age of 21.  The commissioner shall send the proposal to each Vermont school board which provides secondary education by October 1, 2003 in order to enable the board to budget for the expense for fiscal year 2005.

Sec. 187b.  16 V.S.A. § 4011(a) and (f) are amended to read:

(a)  Annually, the general assembly shall appropriate funds to pay for an adjusted education payment for each equalized pupil and a portion of a base education payment for each adult diploma student and student or client in the adult education and literacy program

(f)  Annually, the commissioner shall pay to a department or agency which provides:

(1)  an adult diploma program, an amount equal to 25 percent of the base education payment for each student who completed the diagnostic portion of the program, based on an average of the previous two years; and

          (2)  adult education and literacy services, an amount equal to 20 percent of the base education payment for each client who is 16 to 20 years of age, inclusive, and who has gained at least one skill level pursuant to state or federal standards.  The calculation of “client” shall be based on an average of the previous two years.

Sec. 188.  EDUCATION - EDUCATION GRANTS

     (a)  There is appropriated from the education fund for fiscal year 2004 to the department of education $619,700,000.00.  Of the amount appropriated, $587,000,000.00 shall fund the general state support grant notwithstanding 16 V.S.A. § 4011 at $5,810.00 for each equalized pupil, $27,656,606.00 shall fund the standard mainstream block grant under 16 V.S.A. § 2961, and $4,193,189.00 shall fund the essential early education grant under 16 V.S.A. § 2948(c).

     (b)  Of the above appropriation in Sec. 188(a), $14,022.00 shall be used by the commissioner to issue a payment to the town of Middlebury for a change in valuation in the education tax liability resulting from the change in status of the Addison county community action group property and $42,171.00 shall be used to issue a payment to Rutland Town for a change in valuation in the education tax liability as the result of an appeal of the Juster Mall property assessment.

Sec. 188a.  16 V.S.A. § 11(a)(31) is added to read:

(31)  “Early childhood education” means a program which provides educational services for children three to five years of age.

Sec. 189.  Education - transportation

                   Grants                                           12,922,700

               Source of funds

                    Education fund                              12,922,700

Sec. 190.  Education - small school grants

                   Grants                                             5,023,842

               Source of funds

                   Education fund                                5,023,842

Sec. 191.  Education - capital debt service aid

                   Grants                                             2,126,341

               Source of funds

                   Education fund                                2,126,341

Sec. 192.  Education - local share property tax

                   Grants                                           42,000,000

               Source of funds

                   Education fund                              42,000,000

Sec. 192a.  SCHOOL TECHNOLOGY EXEMPTION

     (a)  Notwithstanding any law to the contrary, in the event that a school district has voted to utilize Sec. 43 of No. 144 of the Acts of 2002 (finance of school construction provisions), up to $65,000.00 of the school district’s local matching funds for the federal school technology grants administered by the school construction unit of the department of education may be removed from the calculation of local education spending for fiscal year 2004 only.

Sec. 193.  Education - tobacco litigation

                   Personal services                                159,089

                   Operating expenses                              23,961

                   Grants                                                695,930

                        Total                                             878,980

               Source of funds

                   Tobacco fund                                     878,980

Sec. 194.  Education - Act 117 cost containment

                   Personal services                                931,143

                   Operating expenses                              58,043

                   Grants                                                  65,000

                        Total                                          1,054,186

               Source of funds

                   Interdepartmental transfer                1,054,186

     (a)  Notwithstanding any provisions of law, expenditures made during fiscal year 2004 from this section shall be counted under 16 V.S.A. § 2967 as part of the state’s 60 percent of the statewide total special education expenditures of funds which are not derived from federal sources.

Sec. 195.  MEDICAID REIMBURSEMENT ADMINISTRATIVE SPECIAL

                FUND - DEPOSIT

     (a)  In addition to deposits in the Medicaid reimbursement administrative special fund in accordance with 16 V.S.A. § 2959a(b), in fiscal year 2004 $1,054,186.00 of federal Medicaid receipts received for reimbursement of medically-related services provided to students who are Medicaid eligible shall be deposited in the administrative special fund.

Sec. 195a.  FISCAL REVIEW PANEL

     (a)  Notwithstanding 16 V.S.A. § 2974(e), the state board of education shall convene the fiscal review  panel in fiscal year 2004 for not more than two meetings in order to review its purpose and make recommendations to the legislature by January 15, 2004, regarding its future role and funding requirements.

Sec. 196.  FUND APPROPRIATION AND TRANSFER

     (a)  There is appropriated in fiscal year 2004 from the general fund for transfer to the education fund the amount of  $268,400,000.00.

Sec. 197.  State teachers’ retirement system

                   Personal services                           11,129,267

                   Operating expenses                            765,703

                   Grants                                           20,446,282

                        Total                                        32,341,252

               Source of funds

                   General fund                                  20,446,282

                   Pension trust fund                          11,894,970

                        Total                                        32,341,252

     (a)  Notwithstanding the provisions of 16 V.S.A. chapter 55, no person shall be eligible to receive benefits from the state teachers’ retirement system who is receiving a continuation of salary under the early retirement provisions of the applicable article of the agreement between Vermont state colleges and the Vermont state colleges faculty federation, VSCFF, AFT, Local 3180, AFL-CIO.

     (b)  Notwithstanding 16 V.S.A. § 1944(g)(2), the amount of annual contribution to the Vermont state teachers’ retirement system shall be $20,446,282.00 in fiscal year 2004. 

Sec. 198.  TAX DEPARTMENT - REAPPRAISAL AND LISTING

                 PAYMENTS

     (a)  The amount of $2,364,500.00 in education funds is appropriated in fiscal year 2004 to implement the provisions of 32 V.S.A. §§ 4041(a), relating to payments to municipalities for reappraisal costs, and 5405(f), relating to payments of $1.00 per grand list parcel.

     (b)  The towns currently engaged in litigation with the Washington electric cooperative regarding grand list appeals of the assessment of utility property, as those values were established by reference to information from the department of taxes, division of property valuation and review, may submit to the attorney general legal expenditures made by those towns as a result of this litigation.  The attorney general shall review the submitted bills and, if reasonable, approve reimbursement.  As the litigation may have a substantial impact on the education grand list, $100,000.00 of the appropriation in this section shall be transferred to the attorney general  and reserved for payment of expenses incurred by towns in defense of grand list appeals as provided herein.  Expenditures for this purpose shall be considered qualified expenditures under 16 V.S.A. § 4025(c).

Sec. 199.  Tax department property tax assistance

                   Grants                                         107,969,706

               Source of funds

                   General fund                                    7,084,690

                   Transportation fund                         4,385,016

                   Education fund                              96,500,000

                        Total                                      107,969,706

Sec. 200.  Total general education and property tax assistance         1,310,951,725

               Source of funds

                   General fund                                309,144,164

                   Transportation fund                         5,033,171

                   Education fund                            874,405,597

                   Special funds                                   1,638,794

                   Tobacco fund                                     878,980

                   Federal funds                                93,891,391

                   Interdepartmental transfer              14,064,658

                   Pension trust fund                          11,894,970

                        Total                                   1,310,951,725

Sec. 201.  University of Vermont

                   Grants                                           36,922,057

               Source of funds

                   General fund                                  36,922,057

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

     (b)  Of the above appropriation, $346,800.00 shall be transferred to EPSCoR for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both.

Sec. 202.  DENTAL HYGIENE PROGRAM; TRANSITIONAL

                PROVISIONS; EFFECTIVE DATES

     (a)  The dental hygiene program currently operated at the university of Vermont will be transferred to the Vermont state colleges not later than June 30, 2004.  The Vermont state colleges will have full responsibility for operating the program thereafter.

     (b)  The university of Vermont will admit, under its admission criteria, qualified applicants for the fall semester 2003, on the condition that all students in good academic standing will be transferred to the Vermont state colleges at the end of the spring semester 2004, and they will be required to meet graduation requirements of the Vermont state colleges.

     (c)  The university of Vermont will provide access to its existing dental hygiene clinic facilities and all existing equipment for the use and benefit of the dental hygiene program until June 30, 2005, unless the university of Vermont and the Vermont state colleges agree to an earlier date of access termination.  The Vermont state colleges will pay the university of Vermont a reasonable rent, to be negotiated, for the use of these facilities after July 1, 2004.

     (d)  On June 30, 2005, or such earlier date as the university of Vermont and the Vermont state colleges may agree, the university of Vermont will transfer existing functional equipment used in the dental hygiene program, excluding equipment used for multiple purposes at the university, to the Vermont state colleges without charge.

Sec. 202a.  ADMINISTRATION BUDGET SUBMISSION; DENTAL

                   HYGIENE PROGRAM

     (a)  The secretary of administration shall include with the fiscal year 2005 budget submission specific proposals to subsidize, in an amount not to exceed $350,000.00, the transition of the dental hygiene program from the university of Vermont to the Vermont state colleges.

Sec. 202b.  ONE-TIME DENTAL HYGIENE LAB APPROPRIATION

(a)  There is appropriated to the university of Vermont the amount of $25,000.00 from the general fund to maintain the dental hygiene lab equipment through June 30, 2005.

Sec. 203.  University of Vermont - Morgan horse farm

                   Grants                                                    5,000

               Source of funds

                   General fund                                           5,000

Sec. 204.  Vermont public television

                   Grants                                                563,832

               Source of funds

                   General fund                                       563,832

Sec. 205.  Vermont state colleges

                   Grants                                           21,185,150

               Source of funds

                   General fund                                  21,185,150

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

     (b)  Of the above appropriation, $100,000.00 shall be reserved for use as the state’s fiscal year 2004 contribution toward the growth of the endowment fund for the Vermont state colleges.  The state’s funds are to serve as a challenge match to enhance the state colleges’ ability to secure endowment contributions from alumni and other interested parties.  The intent is that the fiscal year 2004 appropriation will be the third of five annual appropriations, through fiscal year 2006, totaling $500,000.00.  The conditions of this challenge match are that the state colleges are required to raise three dollars for each dollar appropriated by the state.  A method for accounting for the state colleges’ share has been agreed to between the state colleges and the commissioner of finance and management.  Transfers to the state colleges’ endowment fund shall be under the condition that only the interest accruing to the fund will be available for purposes as designated by the board of trustees of the state colleges.  By June 30, 2007, any remaining state appropriations designated for the state colleges’ endowment fund that have not been matched by the state colleges shall revert to the general fund.   The funds appropriated for this purpose shall be retained by the state.

     (c)  Of the above appropriation, $400,860.00 shall be transferred to the Vermont manufacturing extension center for the purpose of complying with state matching fund requirements necessary for the receipt of available federal or private funds, or both.

Sec. 206.  Vermont state colleges - practical nursing schools

                   Grants                                                604,050

               Source of funds

                   General fund                                       604,050

Sec. 207.  Vermont interactive television

                   Grants                                                795,331

               Source of funds

                   General fund                                       795,331

     (a)  The secretary of administration shall instruct agencies and departments to utilize to the maximum feasible extent the services of Vermont interactive television in order to save in-state travel appropriations.

Sec. 208.  Vermont student assistance corporation

                   Grants                                           16,683,804

               Source of funds

                   General fund                                  16,683,804

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

Sec. 209.  New England higher education compact

                   Operating expenses                              88,840

               Source of funds

                   General fund                                         88,840

Sec. 210.  Total higher education and other       76,873,064

               Source of funds

                   General fund                                  76,873,064

Sec. 211.  Natural resources - agency of natural resources - administration

                   Personal services                             2,428,471

                   Operating expenses                         1,579,076

                   Grants                                                  31,500

                        Total                                          4,039,047

               Source of funds

                   General fund                                    2,345,894

                   Special funds                                      837,053

                   Federal funds                                     119,000

                   Interdepartmental transfer                   737,100

                        Total                                          4,039,047

     (a)  The establishment of one (1) new classified position – Environmental Enforcement Officer – is authorized in fiscal year 2004.  This position shall be transferred and converted from an existing vacant position in the executive branch of state government.

Sec. 211a.  AGENCY OF NATURAL RESOURCES; REPORT

     (a)  The secretary of the agency of natural resources shall report on administrative and management measures being taken by agency management to improve compliance with Vermont’s environmental standards and the efficiency, quality and customer friendliness of the permit review process for all participants in that process.  The report shall include, but not be limited to, actions taken to:

          (1)  increase public notice and involvement in permitting programs;

          (2)  identify and address problems with individual projects earlier and more openly in the permit process; and

          (3)  enhance coordination among various departments of the agency  and sections and divisions of the department of environmental conservation in particular which are working on permitting the same project.

     (b)  The report shall include information on resource and financial constraints which impede the permit process.  It shall make recommendations on the adequacy of staff and financial resources to manage the permitting workload in order to achieve full compliance with Vermont’s environmental standards in an efficient, timely and objective way.  It shall comment on the measures being taken through the EPA to increase and enhance federal funding to improve the quality of the permit review process.

     (c)  The report shall be made by December 15, 2003 to the house and senate committees on natural resources and energy and appropriations.

Sec. 212.  Connecticut river watershed advisory commission

                   Grants                                                  38,000

               Source of funds

                   General fund                                         22,500

                   Federal funds                                       15,500

                        Total                                               38,000

Sec. 213.  Citizens’ advisory committee on Lake Champlain’s future

                   Personal services                                    4,500

                   Operating expenses                                3,000

                        Total                                                 7,500

               Source of funds

                   General fund                                           7,500

Sec. 214.  Natural resources - state land local property tax assessment

                   Operating expenses                         1,194,315

               Source of funds

                   General fund                                       670,000

                   Transportation fund                            262,815

                   Interdepartmental transfer                   261,500

                        Total                                          1,194,315

     (a)  Fiscal year 2002 carry forward funds in the amount of $42,150.00 shall be transferred to the agency of natural resources, administration, to support an environmental enforcement officer, and $41,000.00 shall be transferred to the department of environmental conservation, management and support services, to support one laboratory scientist.

Sec. 215.  Green up

                   Grants                                                    8,550

               Source of funds

                   Special funds                                          8,550

Sec. 216.  Natural resources -  information technology

                   Personal services                             1,065,258

                   Operating expenses                            150,400

                        Total                                          1,215,658

               Source of funds

                   General fund                                         78,975

                   Federal funds                                     101,771

                   Interdepartmental transfer                1,034,912

                        Total                                          1,215,658

Sec. 217.  Fish and wildlife - support and field services

                   Personal services                             9,687,760

                   Operating expenses                         3,891,100

                   Grants                                                150,000

                        Total                                        13,728,860

               Source of funds

                   General fund                                                  0

                   Fish and wildlife fund                     13,414,740

                   Interdepartmental transfer                   314,120

                        Total                                        13,728,860

Sec. 217a.  23 V.S.A. § 3501(5) is amended to read:

(5)  “All-terrain vehicle” or “ATV” means any nonhighway recreational vehicle, except snowmobiles, when used for cross-country travel on trails or on any one of the following or a combination thereof:  land, water, snow, ice, marsh, swampland, and natural terrain.  An “all-terrain vehicle” or “ATV on a public highway shall be considered a motor vehicle, as defined in section 4 of this title, only for the purposes of those offenses listed in subdivisions 2502(a)(1)(H), (N), (R), (U), (Y), (FF), (GG), (II), and (ZZ); (2)(A) and (B); (3)(A), (B), (C), and (D); (4)(A), and (B) and (5) of this title and as provided in section 1201 of this title.  An all-terrain vehicle or ATV shall not include an electric personal assistive mobility device.

Sec. 217b.  23 V.S.A. § 4(21) is amended to read:

(21)  “Motor vehicle” shall include all vehicles propelled or drawn by power other than muscular power, except farm tractors, vehicles running only upon stationary rails or tracks, motorized highway building equipment, road making appliances, snowmobiles, all-terrain vehicles, or tracked vehicles or electric personal assistive mobility devices;

Sec. 217c.  10 V.S.A. § 6001(3) is amended to read:

(3)(A)  “Development” means:

* * *

(D)  The word “development” does not include:

(i)  The construction of improvements for farming, logging or forestry purposes below the elevation of 2,500 feet.

(ii)  The construction of improvements for an electric generation or transmission facility that requires a certificate of public good under section 30 V.S.A. § 248 or a natural gas facility as defined in subdivision 30 V.S.A. § 248(a)(3).

(iii)  The construction of, improvements to, or maintenance of any portion of a statewide trail system on a tract of land not currently under the jurisdiction of this chapter and located below the elevation of 2,500 feet, including construction and maintenance of unpaved trailhead parking facilities of two acres or less, provided that construction and maintenance take place in a manner that meets or exceeds acceptable management practices for maintaining water quality on logging jobs in Vermont, as adopted by the commissioner of forests, parks and recreation; and in the case of snowmobile trails, provided that construction and maintenance also take place in a manner that meets or exceeds practices established in the guide for the development of snowmobile trails, dated 2001-2002, as published by the Vermont Association of Snow Travelers, Inc.  Jurisdiction under this chapter shall not continue to exist after a trail has been discontinued, stabilized, and suitably rehabilitated, in the determination of the district commission, or the board on appeal.  The exemption created under this subdivision shall not apply to trails for motorized recreational vehicles other than snowmobiles.  This subdivision (3)(D)(iii) shall be repealed on July 1, 2005.  The secretary of natural resources shall evaluate and report on the experience derived under this exemption in reports to the house and senate committees on natural resources and energy, to be submitted by January 15, 2005 and by January 15, 2006.

(iv)  The construction of improvements for agricultural fairs that are open to the public for 60 days per year, or fewer, provided that any improvements constructed do not include one or more buildings.

(v)  The construction of improvements for the exhibition or showing of equines at events that are open to the public for 60 days per year, or fewer, provided that any improvements constructed do not include one or more buildings.

Sec. 217d.  LANDS MANAGEMENT WILDLIFE BIOLOGIST POSITION;

                   ONE-TIME APPROPRIATION

     (a)  The position of lands management wildlife biologist is created in the department of fish and wildlife.  The purpose of the position shall be to assist the commissioner of fish and wildlife in developing lands management plans and in managing land owned by the department of fish and wildlife.  In developing land management plans, and in managing land owned by the department of fish and wildlife, the commissioner of fish and wildlife and the lands management wildlife biologist shall ensure that consideration is given to both active management and passive management as guided by agency of natural resources lands management principles.

     (b)  On or before January 15, 2004 and by January 15 each year thereafter, the commissioner of fish and wildlife shall report to the general assembly on: the development of management plans for wildlife management areas; the status of implementation of wildlife habitat enhancement and maintenance projects on fish and wildlife lands; the schedule for maintenance and habitat treatments on wildlife management areas; and the status of protected areas and ecologically sensitive areas on wildlife management areas.

     (c)  There is appropriated from the general fund to the fish and wildlife fund $82,000.00 to pay the salary and expenses of a lands management wildlife biologist for one year.

Sec. 218.  Fish and wildlife - watershed improvement

                   Grants                                                  70,000

               Source of funds

                   Fish and wildlife fund                            70,000

Sec. 219.  Fish and wildlife - wildlife management area projects

                   Operating expenses                            100,000

               Source of funds

                   Fish and wildlife fund                          100,000

Sec. 220.  Fish and wildlife - conservation

                   Operating expenses                            669,000

               Source of funds

                   Fish and wildlife fund                          669,000

Sec. 221.  Fish and wildlife - natural communities and habitat

                   Personal services                                  10,226

                   Operating expenses                            184,074

                        Total                                             194,300

               Source of funds

                   Fish and wildlife fund                          194,300

Sec. 222.  Forests, parks and recreation - administration

                   Personal services                                712,712

                   Operating expenses                            573,605

                   Grants                                             2,226,500

                        Total                                          3,512,817

               Source of funds

                   General fund                                    1,003,817

                   Special funds                                      882,000

                   Federal funds                                  1,627,000

                        Total                                          3,512,817

Sec. 223.  REVERSION TO GENERAL FUND

     (a)  Notwithstanding any other provisions of law, of the $100,000.00 general fund appropriation in Sec. 252(a)(34) of No. 152 of the Acts of 2000, $59,000.00 shall revert to the general fund.

Sec. 224.  Forests, parks and recreation - forestry

                   Personal services                             4,301,098

                   Operating expenses                            509,500

                   Grants                                                370,000

                        Total                                          5,180,598

               Source of funds

                   General fund                                    2,969,625

                   Transportation fund                              21,500

                   Special funds                                      362,500

                   Federal funds                                  1,517,973

                   Permanent trust                                      5,000

                   Interdepartmental transfer                   304,000

                        Total                                          5,180,598

     (a)  The department of forests, parks and recreation, together with the department of fish and wildlife, shall from fiscal year 2004 through fiscal year 2008 provide a forest management report to the house and senate committees on natural resources and energy, the house committee on fish, wildlife and water resources, and the house committee on appropriations.  The report shall describe forestry activities of the departments of the previous year, including the number of acres harvested, the location of the forestry activities, the number of board feet and revenues generated, as well as a plan for future forestry activities for the succeeding five years.  The general assembly supports the prompt and full implementation of the  departments’ forestry management process and plans.

Sec. 225.  Forests, parks and recreation - state parks

                   Personal services                             4,486,938

                   Operating expenses                         2,065,620

                   Grants                                                    5,000

                        Total                                          6,557,558

               Source of funds

                   General fund                                       301,795

                   Special funds                                   6,212,763

                   Interdepartmental transfer                     43,000

                        Total                                          6,557,558

Sec. 226.  Forests, parks and recreation - lands administration

                   Personal services                                379,281

                   Operating expenses                              35,500

                   Land structures and improvements      125,000

                        Total                                             539,781

               Source of funds

                   General fund                                       319,781

                   Special fund                                         25,000

                   Interdepartmental transfer                   195,000

                        Total                                             539,781

Sec. 227.  Forests, parks and recreation - youth conservation corps

                   Personal services                                369,245

                   Operating expenses                              33,700

                   Grants                                                500,000

                        Total                                             902,945

               Source of funds

                   Special funds                                      529,030

                   Interdepartmental transfer                   373,915

                        Total                                             902,945

Sec. 227a.  GREEN MOUNTAIN CONSERVATION CAMP ENDOWMENT

                   FUND APPROPRIATION

     (a)  There is appropriated the sum of $45,000.00 from the general fund to the green mountain conservation camp endowment fund.

Sec. 228.  Forests, parks and recreation - forest highway maintenance

                   Personal services                                    2,539

                   Operating expenses                            404,000

                   Grants                                                200,000

                        Total                                             606,539

               Source of funds

                   Transportation fund                            606,539

Sec. 229.  Environmental conservation - management and support services

                   Personal services                             2,467,896

                   Operating expenses                            735,757

                   Grants                                                112,530

                        Total                                          3,316,183

               Source of funds

                   General fund                                    1,056,575

                   Special funds                                      600,306

                   Federal funds                                     890,044

                   Interdepartmental transfer                   769,258

                        Total                                          3,316,183

Sec. 230.  Environmental conservation - air and waste management

                   Personal services                             5,562,614

                   Operating expenses                         5,574,221

                   Grants                                             1,594,500

                        Total                                        12,731,335

               Source of funds

                   General fund                                       609,584

                   Transportation fund                              39,278

                   Special funds                                   9,171,139

                   Federal funds                                  2,741,334

                   Interdepartmental transfer                   170,000

                        Total                                        12,731,335

Sec. 231.  Environmental conservation - office of water programs

                   Personal services                           10,116,516

                   Operating expenses                         2,104,390

                   Grants                                             2,304,918

                        Total                                        14,525,824

               Source of funds

                   General fund                                    5,164,285

                   Transportation fund                            189,411

                   Special funds                                   2,794,398

                   Federal funds                                  5,829,401

                   Interdepartmental transfer                   548,329

                        Total                                        14,525,824

Sec. 232.  Environmental board and district commissions - Act 250

                   Personal services                             1,986,948

                   Operating expenses                            378,156

                        Total                                          2,365,104

               Source of funds

                   General fund                                       779,728

                   Special funds                                   1,585,376

                        Total                                          2,365,104

Sec. 233.   Environmental board and district commissions - waste facilities panel

                   Personal services                                127,214

                   Operating expenses                              12,786

                        Total                                             140,000

               Source of funds

                   Special funds                                      140,000

Sec. 234.  Water resources board

                   Personal services                                272,751

                   Operating expenses                              42,994

                        Total                                             315,745

               Source of funds

                   General fund                                       315,745

Sec. 235.  Total natural resources                     72,086,659

               Source of funds

                   General fund                                  15,772,804

                   Transportation fund                         1,119,543

                   Fish and wildlife fund                     14,448,040

                   Special funds                                 23,148,115

                   Federal funds                                12,842,023

                   Permanent trust funds                             5,000

                   Interdepartmental transfer                4,751,134

                        Total                                        72,086,659

Sec. 236.  Commerce and community development - agency of commerce and community development - administration

                   Personal services                             1,237,578

                   Operating expenses                            490,993

                   Grants                                                190,000

                        Total                                          1,918,571

               Source of funds

                   General fund                                    1,852,465

                   Interdepartmental transfer                     66,106

                        Total                                          1,918,571

Sec. 237.  Housing and community affairs

                   Personal services                             2,249,428

                   Operating expenses                            298,932

                   Grants                                             4,609,163

                        Total                                          7,157,523

               Source of funds

                   General fund                                    1,483,865

                   Special funds                                   4,267,120

                   Federal funds                                  1,406,538

                        Total                                          7,157,523

Sec. 237a.  HOUSING AND COMMUNITY AFFAIRS; PILOT GRANT

                  PROGRAM

     (a )  The amount of $130,000.00 in general funds is appropriated to the department of housing and community affairs.  These funds shall be used to establish a pilot grant program for the funding of community enhancements.  The commissioner of the department of housing and community affairs in consultation with the chairs of the house and senate committees on appropriations shall develop criteria for the distribution of funding.

Sec. 237b.  24 V.S.A. § 2796(c) is amended to read:

     (c)  Any municipality with a designated downtown development district may apply to the Vermont downtown development board for financial assistance from the fund for capital transportation and related improvement projects within or serving the district.  The board may award to any municipality grants in amounts not to exceed $250,000.00 annually, loans, or loan guarantees for financing capital transportation projects, including but not limited to construction or alteration of roads and highways, parking facilities, and rail or bus facilities or equipment, or for the underground relocation of electric utility, cable and telecommunications lines, but shall not include assistance for operating costs.  Grants awarded by the board shall not exceed twenty-five fifty percent of the overall cost of the project.  The approval of the board may be conditioned upon the repayment to the fund of some or all of the amount of a loan or other financial benefits and such repayment may be from local taxes, fees or other local revenues sources.  The board shall consider geographical distribution in awarding the resources of the fund.

Sec. 238.  Historic sites operations

                   Personal services                                567,380

                   Operating expenses                         1,093,922

                        Total                                          1,661,302

               Source of funds

                   General fund                                       409,352

                   Special funds                                      525,958

                   Federal funds                                     300,000

                   Interdepartmental transfer                   425,992

                        Total                                          1,661,302

Sec. 239.  Community development block grants

                   Grants                                             8,185,740

               Source of funds

                   Federal funds                                  8,185,740

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

Sec. 240.  Economic development

                   Personal services                             1,746,862

                   Operating expenses                            413,044

                   Grants                                             1,214,291

                        Total                                          3,374,197

               Source of funds

                   General fund                                    2,764,052

                   Special funds                                      441,471

                   Federal funds                                     168,674

                        Total                                          3,374,197

Sec. 240a.  STATEWIDE TELECOMMUNICATIONS; STRATEGIC

                   PLANNING; IMPLEMENTATION

     (a)  There is appropriated to the department of economic development the amount of $150,000.00 in general funds for statewide telecommunications strategic planning and implementation.

Sec. 240b.  ONE-TIME BUSINESS RECRUIT ENHANCEMENT

     (a)  There is appropriated the sum of $20,000.00 from the general fund to the department of economic development for enhancement of business recruitment.

Sec. 240c.  WOOD PRODUCTS PROMOTION; ONE-TIME FUNDING

     (a)  There is appropriated the sum of $40,000.00 from the general fund to the department of economic development for the Vermont wood products showcase initiative.

Sec. 241.  Vermont training program

                   Personal services                                  82,677

                   Operating expenses                              17,476

                   Grants                                             1,048,935

                        Total                                          1,149,088

               Source of funds

                   General fund                                    1,107,700

                   Special funds                                        41,388

                        Total                                          1,149,088

Sec. 242.  Job development zones

                   Grants                                                  57,863

               Source of funds

                   General fund                                         57,863

Sec. 243.  Tourism and marketing

                   Personal services                             2,616,958

                   Operating expenses                         1,418,147

                   Grants                                             1,221,980

                        Total                                          5,257,085

               Source of funds

                   General fund                                    4,902,085

                   Special funds                                        55,000

                   Interdepartmental transfer                   300,000

                        Total                                          5,257,085

     (a)  Of the above general fund appropriation, $500,000.00 shall be allocated for regional marketing organization grants.

Sec. 243a.  TOURISM AND MARKETING INITIATIVES

     (a)  The amount of $238,000.00 in general funds is appropriated to the department of tourism and marketing for regional marketing organization grants.

Sec. 244.  Vermont life

                   Personal services                                645,000

                   Operating expenses                            180,000

                         Total                                             825,000

               Source of funds

                   Enterprise funds                                  825,000

Sec. 245.  Vermont council on the arts

                   Grants                                                491,618

               Source of funds

                   General fund                                       491,618

Sec. 245a.  HISTORICAL COMMUNITY CURTAIN RESTORATION

                  PROJECT FUNDING

     (a)  There is appropriated the sum of $25,000.00 from the general fund to the Vermont council on the arts to be used as matching funds by the Vermont museum and gallery alliance for a statewide restoration project of historical painted theatre curtains.

Sec. 246.  Vermont symphony orchestra

                   Grants                                                101,960

               Source of funds

                   General fund                                       101,960

Sec. 247.  Vermont historical society

                   Grants                                                429,874

               Source of funds

                   General fund                                       429,874

Sec. 248.  Vermont housing and conservation board

                   Grants                                           26,668,921

               Source of funds

                   Special funds                                 12,018,000

                   Federal funds                                14,650,921

                        Total                                        26,668,921

     (a)  Of the above special funds appropriation, $20,000.00 shall be transferred to the department of forests, parks and recreation, lands administration division, to support survey functions.

     (b)  The secretary of administration in coordination with the Vermont housing and conservation board shall conduct a management review of the nonprofit housing providers that have received multiple grant awards from the board.  From the above special fund appropriation, the Vermont housing and conservation board is authorized to use up to $100,000.00 for expenses of this management review.

Sec. 249.  Vermont humanities council

                   Grants                                                130,599

               Source of funds

                   General fund                                       130,599

Sec. 250.  16 V.S.A. §§ 126 and 127 are amended to read:

§ 126.  Purpose of the council

     In order to increase the opportunities of Vermonters and visitors to Vermont to take part in and enjoy programs in the humanities, a group of people devoted to history, philosophy, languages, linguistics, literature, archeology, jurisprudence, ethics, comparative religion, the theory and criticism of the arts and related fields has formed the Vermont council on the humanities humanities council, a nonprofit organization for the purpose of assisting and encouraging libraries, schools, museums, colleges, universities and other organizations in their several cultural and educational activities in the humanities.

§ 127.  Designation

     The Vermont council on the humanities humanities council is designated as the nonprofit organization in the state to apply for funds distributed by the division of state programs, or its successor programs, of the National Endowment for the Humanities under the National Foundation of the Arts and Humanities Act of 1965 and any amendments thereto.

Sec. 251.  Total commerce and community development 58,012,341

               Source of funds

                   General fund                                  14,334,443

                   Special funds                                 17,348,937

                   Federal funds                                24,711,873

                    Enterprise funds                                  825,000

                   Interdepartmental transfer                   792,098

                        Total                                        58,012,341

Sec. 252.  TRANSPORTATION

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

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

Sec. 253.  Transportation - finance and administration

                   Personal services                             8,395,552

                   Operating expenses                         1,208,510

                        Total                                          9,604,062

               Source of funds

                   Transportation fund                         9,158,562

                   Federal funds                                     445,500

                        Total                                          9,604,062

Sec. 254.  Transportation - aviation

                   Personal services                             1,174,245

                   Operating expenses                         9,152,835

                   Grants                                                  50,000

                        Total                                        10,377,080

               Source of funds

                   Transportation fund                         2,892,080

                   Federal funds                                  7,485,000

                        Total                                        10,377,080

Sec. 255.  Transportation - buildings

                   Personal services                                295,000

                   Operating expenses                         1,255,000

                        Total                                          1,550,000

               Source of funds

                   Transportation fund                         1,550,000

Sec. 256.  Transportation - program development

                   Personal services                           36,076,170

                   Operating expenses                       96,940,230

                   Grants                                           24,580,631

                        Total                                      157,597,031

               Source of funds

                   Transportation fund                       30,635,406

                   Local match                                    2,080,513

                   Federal funds                              124,881,112

                        Total                                      157,597,031

     (a)  Of the above appropriation, $150,000.00 of transportation funds is reserved to be used to match additional federal aid highway apportionment funds received by the state with respect to federal fiscal year 2004 in excess of $114,000,000.00.  If no additional federal aid highway funds are received, the funds shall be used to cover project cost increases pursuant to 19 V.S.A. § 10g(f).

Sec. 257.  Transportation - interstate rest areas

                   Personal services                                  75,000

                   Operating expenses                            120,000

                        Total                                             195,000

               Source of funds

                   Transportation fund                              19,500

                   Federal funds                                     175,500

                        Total                                             195,000

Sec. 258.  Transportation - maintenance state system

                   Personal services                           28,861,011

                   Operating expenses                       21,861,173

                         Total                                        50,722,184

               Source of funds

                   Transportation fund                       50,422,184

                   Federal funds                                     300,000

                        Total                                        50,722,184

Sec. 259.  Transportation - policy and planning

                   Personal services                             3,114,719

                   Operating expenses                            445,560

                   Grants                                             3,964,440

                         Total                                          7,524,719

               Source of funds

                   Transportation fund                         1,457,461

                   Federal funds                                  6,067,258

                        Total                                          7,524,719

Sec. 260.  Transportation - rail

                   Personal services                             1,760,212

                   Operating expenses                       13,297,089

                        Total                                        15,057,301

               Source of funds

                   Transportation fund                         7,310,836

                   Federal funds                                  7,746,465

                        Total                                        15,057,301

Sec. 261.  Transportation - public assistance grant program

                   Grants                                                461,001

               Source of funds

                   Special fund                                                  1

                   Federal funds                                     461,000

                        Total                                             461,001

Sec. 262.  Transportation - public transit

                   Personal services                                402,093

                   Operating expenses                            705,460

                   Grants                                           11,785,679

                        Total                                        12,893,232

               Source of funds

                   Transportation fund                         5,088,930

                   Local match                                         67,500

                   Federal funds                                  6,903,508

                   Interdepartmental transfer                   833,294

                        Total                                        12,893,232

Sec. 263.  Transportation - central garage

                   Personal services                             2,947,557

                   Operating expenses                         9,548,322

                        Total                                        12,495,879

               Source of funds

                   Internal service funds                     12,495,879

     (a)  Pursuant to 19 V.S.A. § 13(b), the agency of transportation is authorized to add one vehicle to the fleet for use by the department of motor vehicles.

Sec. 264.  Department of motor vehicles

                   Personal services                           13,252,989

                   Operating expenses                         5,341,689

                   Grants                                                100,000

                        Total                                        18,694,678

               Source of funds

                   Transportation fund                       17,449,809

                   Federal funds                                  1,244,869

                        Total                                        18,694,678

Sec. 265.  Transportation - town highway structures

                   Grants                                             3,494,500

               Source of funds

                   Transportation fund                         3,494,500

Sec. 266.  Transportation - town highway emergency fund

                   Grants                                                750,000

               Source of funds

                   Transportation fund                            750,000

Sec. 267.  Transportation - town highway Vermont local roads

                   Grants                                                448,000

               Source of funds

                   Transportation fund                            308,000

                   Federal funds                                     140,000

                        Total                                             448,000

Sec. 268.  Transportation - town highway class 2 roadway

                   Grants                                             4,248,750

               Source of funds

                   Transportation fund                         4,248,750

Sec. 269.  Transportation - town highway bridges

                   Personal services                             3,242,934

                   Operating expenses                       18,791,786

                   Grants                                             2,068,000

                        Total                                        24,102,720

               Source of funds

                   Transportation fund                         4,627,672

                   Local match                                    1,862,208

                   Federal funds                                17,612,840

                        Total                                        24,102,720

Sec. 270.  Transportation - town highway aid program

                   Grants                                           23,857,744

               Source of funds

                   Transportation fund                       23,857,744

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

Sec. 271.  Transportation - town highway class 1 supplemental grants

                   Grants                                                128,750

               Source of funds

                   Transportation fund                            128,750

Sec. 272.  Transportation board

                   Personal services                                  60,434

                   Operating expenses                              69,566

                        Total                                             130,000

               Source of funds

                   Transportation fund                            130,000

     (a)  Of the above appropriation, $50,000.00 shall be used to cover the expenses of carrying out the study as directed in Sec. 28 of H.454 of the fiscal year 2004 transportation capital program and project development plan as approved by the general assembly.

Sec. 272a.  Vermont transportation authority

                   Operating expenses                                6,000

               Source of funds

                   Transportation fund                                6,000

Sec. 273.  Total transportation                        354,338,631

               Source of funds

                   Transportation fund                     163,536,184

                   Local match                                    4,010,221

                   Federal funds                              173,463,052

                   Special funds                                                 1

                   Internal service funds                     12,495,879

                   Interdepartmental transfer                   833,294

                        Total                                      354,338,631

Sec. 274.  Debt service                                    70,892,478

               Source of funds

                   General fund                                  65,902,206

                   Transportation fund                         2,407,287

                   Education fund                                   200,000

                   Special funds                                   2,382,985

                        Total                                        70,892,478

Sec. 275.  Total debt service                            70,892,478

               Source of funds

                   General fund                                  65,902,206

                   Transportation fund                         2,407,287

                   Education fund                                   200,000

                   Special funds                                   2,382,985

                        Total                                        70,892,478

Sec. 276.  MISCELLANEOUS ACTS OF THE 2003 SESSION

(a)  Amounts are hereby appropriated in accordance with the provisions of all house and senate bills which may be enacted by the 2003 session of the general assembly.

Sec. 277.  RELATIONSHIP TO CERTAIN EXISTING LAWS

(a)  This act shall not be construed in any way to negate or impair the full force and effect of existing laws relating to taxation and the disposition of funds raised thereby, the appraisal of electric plants, lawful rebates from the state treasury, laws relating to unorganized towns and gores, laws relating to trust funds for which the state is trustee or beneficiary, laws relating to care and regulation of state institutions and property, and laws relating to the state agricultural land grant funds.

Sec. 278.  OFFSETTING APPROPRIATIONS

(a)  In the absence of specific provisions to the contrary in this act, when total appropriations are offset by estimated receipts, the state appropriations shall control, notwithstanding receipts being greater or less than anticipated. 

Sec. 279.  FEDERAL FUNDS

(a)  In fiscal year 2004, the governor, with the approval of the legislature, or the joint fiscal committee if the legislature is not in session, may accept federal funds available to the state of Vermont, including block grants in lieu of or in addition to funds herein designated as federal.  The governor, with the approval of the legislature, or the joint fiscal committee if the legislature is not in session, may allocate all or any portion of such federal funds for any purpose consistent with the purposes for which the basic appropriations in this act have been made.

(b)  If, during fiscal year 2004, federal funds available to the state of Vermont, and designated as federal in this and other acts of the 2003 session of the Vermont general assembly, are converted into block grants or are abolished under their current title in federal law and reestablished under a new title in federal law, the governor may continue to accept such federal funds for any purpose consistent with the purposes for which the federal funds were appropriated.  The governor may spend such funds for such purposes for no more than 45 days prior to legislative or joint fiscal committee approval.  Notice shall be given to the joint fiscal committee without delay if the governor is intending to use the authority granted by this section, and the joint fiscal committee shall meet in an expedited manner to review the governor’s request for approval.

Sec. 280.  DEPARTMENTAL RECEIPTS

(a)  All receipts shall be credited to the general fund except as otherwise provided and except the following receipts, for which this subsection shall constitute authority to credit to special funds:

     Connecticut river flood control

     Public service department ‑ sale of power

     Tax department ‑ unorganized towns and gores

(b)  Notwithstanding any other provision of law, departmental indirect cost recoveries (32 V.S.A. § 6) receipts are authorized, subject to the approval of the secretary of administration, to be retained by the department.  All recoveries not so authorized shall be covered into the general fund, or, for agency of transportation recoveries, the transportation fund.

Sec. 281.  NEW POSITIONS

(a)  Notwithstanding any other provision of law, the total number of authorized state positions, both classified and exempt, excluding temporary positions as defined in 3 V.S.A. § 311(11), shall not be increased during fiscal year 2004, except for new positions authorized by the 2003 session of the general assembly.  Limited service positions approved pursuant to 32 V.S.A. § 5 and nursing positions at the Vermont veterans’ home established pursuant to Sec. 4 of No. 145 of the Acts of 2000, as amended, shall not be subject to this restriction.

Sec. 282.  APPROPRIATIONS; PROPERTY TRANSFER TAX

(a)  This act contains the following amounts appropriated from special funds that receive revenue from the property transfer tax.  Expenditures from these appropriations shall not exceed available revenues:

(1)  The sum of $288,000.00 is appropriated from the property valuation and review administration special fund to the department of taxes for administration of the use tax reimbursement program.

(2)  The sum of $11,088,000.00 is appropriated from the housing and conservation trust fund to the housing and conservation trust board.  Notwithstanding 10 V.S.A. § 312, amounts above $11,088,000.00 from the property transfer tax that would otherwise be deposited into the Vermont housing and conservation trust fund based on the January 2003 official forecast shall instead be deposited into the general fund.

(3)  The sum of $3,769,920.00 is appropriated from the municipal and regional planning fund as follows:

(A)  $2,638,944.00 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b);

(B)  $753,984.00 for disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b);

(C)  $376,992.00 to the geographic information system.  Notwithstanding 24 V.S.A. § 4306(a), amounts above $376,992.00 from the municipal and regional planning fund that would otherwise be disbursed to the Vermont center for geographic information based on the January 2003 official forecast shall instead be deposited into the general fund.

          (4)  Notwithstanding 24 V.S.A. § 4306(a), amounts above $3,769,920.00 from the property transfer tax that would otherwise be deposited into the municipal and regional planning fund based on the January 2003 official forecast shall instead be deposited into the general fund.

Sec. 283.  SPECIAL EDUCATION; STATE FUNDING

(a)  Notwithstanding Sec. 10(c) of No. 117 of the Acts of 2000, state funding pursuant to 16 V.S.A. § 2967(b) shall not exceed 60 percent for any fiscal year.  If, in any fiscal year, the actual percentage increase in the statewide total special education expenditures is less than the target increase, pursuant to Sec. 10(a) of No. 117 of the Acts of 2000, and the actual increase in the total K-12 service plans is more than the target increase, the actual percentage increase will be used to determine the amount appropriated for the ensuing fiscal year, pursuant to Sec. 10(b) of No. 117 of the Acts of 2000.

Sec. 284.  [Deleted]

Sec. 285.  [Deleted]

Sec. 286.  32 V.S.A. § 3752(12) is amended to read:

          (12)  “Use value appraisal” means, with respect to land, the price per acre which the land would command if it were required to remain henceforth in agriculture or forest use, as determined in accordance with the terms and provisions of this subchapter.  With respect to farm buildings, “use value appraisal” means 30 0 percent of fair market value.  The director shall annually provide the assessing officials with a list of farm sales, including the town in which the farm is located, the acreage, sales price, and date of sale.

Sec. 286a.  32 V.S.A. § 3752(14) is amended to read: 

          (14)  “Farm buildings” means all farm buildings and other farm improvements, excluding any dwellings, which are actively used by a farmer as part of a farming operation, are owned by a farmer or leased to a farmer under a written lease for a term of three years or more, and are situated on land that is enrolled in a use value appraisal program or on a housesite adjoining enrolled land.; but “farm buildings” shall not include any dwelling other than a dwelling in use during the preceding tax year exclusively to house one or more farm employees, as defined in section 4469 of Title 9, and their families, as a nonmonetary benefit of the farm employment.

Sec. 287.  32 V.S.A. § 3760 is amended to read:

§ 3760.  PAYMENT TO MUNICIPALITIES

(a)  Annually the state shall pay to each town the amount necessary to limit its tax rate increase in the prior year due to the loss of municipal property tax revenue for that year based on use value of enrolled property as compared to municipal property tax revenue for that year based on fair market value of enrolled property, to zero.  The director of property valuation and review shall determine the amount of the available funds under this section to be paid to each town, and a town may appeal the director’s decision in the same manner and under the same procedures as an appeal from a decision of a board of civil authority, as set forth in subchapter 2 of chapter 131 of this title.  On November 1 of each year, the director of property valuation and review shall pay to each municipality the amount calculated as described above in this section.  If the appropriation for the year is insufficient to pay the full amount due to every town under this subsection, payments in that year shall be made to such towns proportionately.  The director’s calculation of payment amounts to municipalities shall be based on grand list values and total tax appropriations as submitted to the director for the prior year.

(b)  Assessing officials shall appraise property enrolled in the program at fair market value consistent with other appraisals.  On or before July 5, the assessing officials shall provide the director with the listed value of all enrolled property in the municipality.  If the director certifies that the value set by the assessing officials is significantly above the fair market value or is not equitable with other assessments, the director’s estimate of the fair market value shall be substituted for that of the assessing officials.

(c)  A town aggrieved by the director’s decision under this section may appeal that decision under the same procedures as an appeal from a decision of the board of civil authority.

Sec. 288.  TRANSITION CALCULATION OF EDUCATION TAX FOR

                 FARM BUILDINGS

     (a)  The education tax liability of any municipality under 16 V.S.A. § 428 or 511 and 32  V.S.A. § 5402, for fiscal year 2004, shall be based upon the equalized education grand list of January 1, 2003, minus any value for farm buildings enrolled in the use value program on April 1, 2002 grand lists.

Sec. 289.  APPROPRIATION; FARM BUILDINGS; PAYMENT TO

                MUNICIPALITIES

     (a)  The November 1, 2003 payment required under 32 V.S.A. § 3760 for reimbursement to towns for loss in municipal tax revenue due to use value appraisal shall be calculated as if the listed value of enrolled farm buildings for the April 1, 2002 grand list were $0.  There is appropriated in fiscal year 2004 from the general fund the amount of  $125,000.00 and from the transportation fund the amount of $125,000.00 to the director of property valuation and review for state payments to municipalities for farm buildings enrolled in the current use program as determined by section 3760 of Title 32.

Sec. 289a.  GRAND LIST ADDENDUM FOR FARM BUILDINGS

                  CHANGE

     (a)  The amendments made by this act to the method of appraisal of property at use value shall apply to appraisals of property for property tax years beginning on and after January 1, 2003.  The 2003 grand list of any municipality in which appraisals have been conducted and a grand list filed pursuant to chapter 129 of Title 32 on or before June 1, 2003 may be adjusted by the listers of the municipality through an addendum to the grand list filed with respect only to those parcels of property affected by the use value appraisal provisions of this act.  Notice of the adjustments shall be provided to all affected landowners who shall be afforded an opportunity to appeal according to chapter 131 of Title 32.

Sec. 289b.  Sec. 42(2) of No. 144 of the Acts of 2002 is amended to read:

(2)  Sec. 3 (ski lifts) shall apply to grand lists for 2003 2004 and after, and to education property tax assessed for fiscal years 2005 and after. ; and ski lifts and snow-making equipment for ski areas shall be excluded from grand lists of April 1, 2003 solely for the purpose of determining equalized education grand lists for January, 2004.

Sec. 290.  SPECIFIC CURRENT USE ENROLLMENT   

     (a)  The department of taxes, division of property valuation and review, shall allow the property identified as parcel 0078-007 on map 18-01-22 in Cambridge to enroll the current use program for the 2003 tax year (April 1, 2003 list date) if the enrollment forms are filed by the property owner by June 30, 2003 and the property is eligible in all other respects.

Sec. 291.  TRANSPORTATION FUND TRANSFER

(a)  The amount of $800,000.00 is transferred from the transportation fund to the downtown transportation and related capital improvement fund established by 24 V.S.A. § 2796 to be used by the Vermont downtown development board for the purposes of the fund.

Sec. 292.  REPEALS

(a)  Secs. 198(d) (allocation of amounts in excess of a five percent education fund reserve) and 204(b) (increase to the general fund appropriation and transfer to the education fund) of No. 142 of the Acts of 2002 are repealed.

     (b)  Sec. 11 of No. 63 of the Acts of 1995 (authority to charge for duplicate payments) is repealed.

Sec. 293.  FISCAL YEAR 2004 DESIGNATED BALANCE (WATERFALL)

(a)  At the close of fiscal year 2004, the fiscal year 2004 unreserved and undesignated general fund balance on a budgetary basis, as determined by the commissioner of finance and management on July 31, 2004, shall be:

(1)  First, transferred to the general fund budget stabilization reserve to attain its statutory maximum; and

(2)  Second, transferred to the general fund surplus reserve established in Sec. 277(5) of No. 147 of the Acts of 1998, as amended by Sec. 88 of No. 1 of the Acts of 1999.  Said funds shall remain in the general fund surplus reserve pending appropriation by the legislature.

Sec. 294.  TRANSPORTATION FUND TRANSFERS AND

                 APPROPRIATIONS  

(a)  Notwithstanding any other provisions of law, the fiscal year 2003 unreserved undesignated transportation fund balance on a budgetary basis as determined by the commissioner of finance and management on July 31, 2003, is hereby transferred and appropriated as available in the following order:

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

(2)  Second, up to $225,000.00 to the agency of transportation for the Hubbardton Route 30, Lake Bomoseen causeway project;

(3)  Third, up to $106,000.00 to the department of buildings and general services for day operation of the Randolph rest areas on I-89;

(4)  Fourth, any remaining amounts shall be appropriated to the agency of transportation to be allocated as follows:

(A)  First, to satisfy federal fund match requirements for projects authorized in the state’s transportation capital program for fiscal year 2004 as approved by the general assembly;

               (B)  Second, as determined in the discretion of the secretary, among the maintenance state system program, shelf projects, and town highway bridge projects.

Sec. 295.  [Deleted]

Sec. 296.  [Deleted]

Sec. 297.  VERMONT RENEWABLE POWER SUPPLY ACQUISITION

                 AUTHORITY; ONE-TIME APPROPRIATION

(a)  There is appropriated from the petroleum violation escrow fund the sum of $250,000.00 to the Vermont renewable power supply acquisition authority for its work regarding the purchase of all or part of the Connecticut river hydroelectric system.  Should the Vermont renewable power supply acquisition authority not be established by the legislature in 2003, this appropriation shall revert to the petroleum violation escrow fund.

Sec. 298.  32 V.S.A. § 307(b) is amended to read:

(b)  The budget shall also include in detail definite recommendations of the governor relative to the amounts which should be appropriated to each of the activities herein referred to.  It shall also include definite recommendations of the governor relative to the financing of the expenditures recommended and the appropriate amounts to be raised from ordinary revenue, direct taxes, bonds or loans.  The financing of the expenditures recommended, as proposed by the governor, shall not include the funds from the budget stabilization trust fund as established in section 308 of this title.  With the budget, the governor shall submit to the general assembly such messages, statements or supplemental data with reference to the same, as the governor may deem expedient, however budget documentation shall include to the extent possible the following:

     (1)  Specific sources of receipts.  In the event of special fund appropriations the particular special fund sources shall be itemized.

     (2)  Interdepartmental transfers shall be explained, including the source department of said transfer.

     (3)  Changes in positions within departmental budgets including prior year, current year and requested budget year positions counts by title and category.  Positions should be identified as to whether they are filled and unfilled.

          (4)  A document outlining proposed changes in program funding and related policy changes that they reflect.  This summary shall include narrative description of the proposed changes.

Sec. 299.  LEGISLATIVE AUTHORITY TO SET INTERNAL SERVICE

                CHARGES

32 V.S.A. § 307(e) is added to read:

     (e)  The budget shall also include any proposed charges to be billed to departmental budgets for payment to internal service funds where the total of such charges exceeds $1,000,000.00.  The rates of any such charges shall be subject to legislative approval.

Sec. 300.  LAW ENFORCEMENT WORKING GROUP

(a)  A law enforcement summer study working group shall be convened for the purpose of studying law enforcement in Vermont and making recommendations to the governor and the general assembly for improvements, encompassing the following:

(1)  all state, county and local functions;

(2)  clarification of roles and responsibilities at each level; and

(3)  effective and economical use of municipal, county and state officers.

(b)  The working group shall consist of one representative each from the department of public safety, the state’s attorneys association, the sheriffs association, the Vermont chiefs of police association, and the Vermont league of cities and towns; one state trooper selected by the Vermont state employees association; one member from the governor’s criminal justice cabinet; one member each from the house committees on judiciary, government operations and appropriations, appointed by the speaker of the house; and one member each from the senate committees on judiciary, government operations and appropriations, appointed by the senate committee on committees.  In addition, one representative each from the U.S. attorney’s office for Vermont and the Vermont attorney general’s office and one member of the Vermont criminal justice training council shall be invited to participate as observers.

(c)  The group shall meet from July through October 2003.  Legislative members shall be entitled to per diem compensation for no more than six meetings and reimbursement for expenses in accordance with 2 V.S.A. § 406.

(d)  The working group shall have the assistance and cooperation of the governor’s office and all pertinent state and local agencies and departments.  The legislative council and the joint fiscal office shall provide professional and administrative support for the group.

(e)  Findings and recommendations of the working group, including proposals for administrative and legislative action, shall be presented to the governor and the legislature by November 1, 2003.  The governor shall address the recommendations in the proposed state budget for fiscal year 2005, and the legislature shall address them during the 2004 legislative session.

Sec. 300a.  STUDY OF PRISONER TRANSPORT

     (a)  The state’s attorneys, sheriffs, defender general, judiciary and corrections department shall implement the findings of the 2002 study of prisoner transport with a goal to managing transport within current appropriations.  In the event that a department fails to cooperate or provide timely notification of changes in transportation needs, the costs shall be absorbed by the department.  A report on the implementation of prisoner transport recommendations shall be submitted to the legislature on January 15, 2004.

Sec. 301.  27 V.S.A. § 1209 is amended to read:

§ 1209.  PROPERTY HELD BY BANKING OR FINANCIAL

             ORGANIZATIONS OR BUSINESS ASSOCIATIONS

(a)  Any demand, savings, or matured time deposits with a banking or financial organization, including deposits that are automatically renewable, together with any interest or dividend thereon, excluding any charges that may lawfully be withheld, and any funds paid toward the purchase of shares, a mutual investment certificate, or any other interest in a financial organization and any interest or dividends thereon, excluding any charges that may lawfully be withheld, is presumed abandoned unless the owner within five three years has:

* * *

(4)  Been sent by first class mail a statement of account or other associated mailing from the bank or financial institution, which has not been returned by the postal service as undeliverable.  In the event the mailing was returned undeliverable, the property shall be considered abandoned five three years after the return, unless the owner during that five three years takes any action described in subdivisions (1), (2), or (3) of this subsection.

* * *

(c)  A sum payable on any other written instruments on which a banking or financial organization or business association is directly liable, including but not limited to, certified checks, or drafts, that has been outstanding for more than five three years from the date it was payable or after its issuance if payable on demand, or any sum payable on a money order that has been outstanding for more than seven years after its issuance, is presumed abandoned unless the owner has within five three years, or within seven years in the case of a money order, communicated in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file prepared by an employee of the banking or financial organization or business association.

* * *

Sec. 301a.  27 V.S.A. § 1210 is amended to read:

§ 1210.  UNCLAIMED FUNDS HELD BY LIFE INSURANCE

               CORPORATIONS

(a)  Funds held or owing by a life insurance corporation under any life or endowment insurance policy or annuity contract which has matured or terminated are presumed abandoned if unclaimed for more than five three years after the funds became due and payable as established from the records of the corporation.

* * *

(c)  For purposes of this chapter, a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the corporation is deemed matured and the proceeds due and payable if:

* * *

(C)  neither the insured nor any other person appearing to have an interest in the policy has, within the preceding five three years, according to the records of the corporation assigned, readjusted, or paid premiums on the policy, subjected the policy to loan or corresponded in writing with the corporation concerning the policy.

* * *

Sec. 301b.  27 V.S.A. § 1210a(b) is amended to read:

(b)  “Unclaimed funds,” as used in this section, means all moneys held and owing by any fire, casualty or surety insurance corporation unclaimed and unpaid for more than five three years after the moneys become due and payable as established from the records of the corporation either to an insured, a principal, or a claimant under any fire, casualty or surety insurance policy or contract.

Sec. 301c.  27 V.S.A. § 1210b is added to read:

§ 1210b.  UNCLAIMED DEMUTUALIZATION PROCEEDS

(a)  Property distributable in the course of a demutualization, rehabilitation, or related reorganization of an insurance company is deemed abandoned two years after the date the property is first distributable if, at the time of the first distribution the last known address of the owner on the books and records of the holder is known to be incorrect, or the distribution or statements are returned by the post office as undeliverable; and the owner has not:

(1)  communicated in writing with the holder or its agent regarding the property; or

(2)  otherwise communicated with the holder regarding the property as evidenced by a memorandum or other record on file with the holder or its agent.

(b)  Property distributable in the course of a demutualization, rehabilitation, or related reorganization of a mutual insurance company that is not subject to subdivision (1) of this section shall be reportable as otherwise provided by this chapter.

(c)  Property subject to subdivision (1) of this section shall be reported and delivered pursuant to this chapter no later than May 1 of the calendar year following the calendar year that the property is deemed abandoned.

Sec. 301d.  27 V.S.A. § 1211 is amended to read:

§ 1211.  DEPOSITS AND REFUNDS HELD BY UTILITIES

The following funds held or owing by any utility are presumed abandoned:

(1)  Any deposit, including any interest thereon, made by a subscriber with a utility to secure payment for, or any sum paid in advance for utility services to be furnished, less any lawful deduction, that has remained unclaimed by the person appearing on the records of the utility entitled thereto for more than five three years after the termination of the services for which the deposit or advance payment was made.

(2)  Any sum which a utility has been ordered to refund and which was received for utility services rendered, together with any interest thereon, less any lawful deductions, that has remained unclaimed by the person appearing on the records of the utility entitled thereto for more than five three years after it became payable in accordance with the final determination or order providing for the refund, regardless of whether the final determination or order requires any person entitled to a refund to make a claim therefor.

Sec. 301e.  27 V.S.A. § 1213 is amended to read:

§ 1213.  UNDISTRIBUTED DIVIDENDS AND DISTRIBUTIONS

Any stock or other certificate of ownership, or any dividend, profit, distribution, interest, principal, payment on principal, or other sum held or owing by a business association for or to a shareholder, certificate holder, member, bondholder, or other security holder, or a participating patron of a cooperative, who has not claimed it, or corresponded in writing with the business association concerning it, within five three years after the date prescribed for payment or delivery, is presumed abandoned if:

* * *

Sec. 301f.   27 V.S.A. § 1215 is amended to read:

§ 1215.  PROPERTY HELD BY FIDUCIARIES

All tangible personal property located in this state and all intangible personal property and any income or increment on such tangible or intangible property, held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner has, within five three years after he or she has become sui juris and it becomes payable or distributable, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary.

Sec. 301g.  27 V.S.A. § 1217 is amended to read:

§ 1217.   PROPERTY HELD BY STATES, STATE COURTS, AND PUBLIC

               OFFICERS AND AGENCIES

(a)  All intangible personal property held for the owner by any state, state or federal court, public corporation, public authority, or public officer, or a political subdivision, that has remained unclaimed by the owner for more than five three years is presumed abandoned.  However, this provision shall in no way affect the laws of this state relating to such property in the custody or control of any state court or on deposit or that may be deposited in a bank or other depository to the credit of any court in any case, and if any federal statute provides for the distribution of any unclaimed property subject to the jurisdiction of a federal court, this statute shall not apply.

* * *

Sec. 301h.  27 V.S.A. § 1218 is amended to read:

§ 1218.  MISCELLANEOUS PERSONAL PROPERTY HELD FOR

             ANOTHER PERSON

All intangible personal property, not otherwise covered by this chapter, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holder’s business and has remained unclaimed by the owner for more than five three years after it became payable or distributable is presumed abandoned.

Sec. 301i.  27 V.S.A. § 1238 is amended to read:

§ 1238.  AGREEMENT TO LOCATE REPORTED PROPERTY AND HEIR

              FINDER FEE LIMITS

Any agreement to pay compensation to recover or assist in the recovery of property reported under section 1220 of this title is unenforceable, if it is made within 18 months after the date the report is filed under section 1220 of this title or made within 12 months after the date payment or delivery is made under section 1222 of this title.  One may not contract for, or receive from the claimant, an amount, including all expenses incurred, in excess of 10 percent of the value of the abandoned property recovered.

Sec. 301j.  27 V.S.A. § 1239 is amended to read:

§ 1239.  UNCLAIMED PROPERTY; DECEASED OWNER

If the state treasurer holds unclaimed property valued at less than $500.00 $1,000.00 in the name of a deceased owner, the treasurer may deliver the property as follows:

* * *

Sec. 301k.  POSITION

     (a)  The establishment of one (1) new classified position – Program Services Clerk – is authorized in the Treasurer’s Unclaimed Property Office in fiscal year 2004.  This position shall be transferred and converted from existing vacant positions in the executive branch of state government.

Sec. 302.  FULL-TIME STATE FIREFIGHTER RETIREMENT GROUP

     (a)  The state treasurer shall make recommendations for establishing a new group retirement plan for full-time state employee firefighters, and submit a report of these recommendations to the house and senate committees on appropriations and government operations by December 15, 2003.

Sec. 302a.  3 V.S.A. § 455(a)(9) is amended to read:

(9)  “Employee” shall mean:

(A)  any regular officer or employee of the Vermont historical society or in a department other than a person included under (B) of this subdivision, who is employed for not less than 40 calendar weeks in a year,; and

(B)  any regular officer or employee of the department of public safety assigned to police and law enforcement duties, including the commissioner of public safety appointed before July 1, 2001; but, irrespective of the member’s classification, shall not include any member of the general assembly as such, any person who is covered by the Vermont teachers’ retirement system, any person engaged under retainer or special agreement or C beneficiary employed by the department of public safety for not more than 208 hours per year, or any person whose principal source of income is other than state employment.  In all cases of doubt, the retirement board shall determine whether any person is an employee as defined in this subchapter.  Also included under (B) of this subdivision are employees of the department of liquor control who exercise law enforcement powers, employees of the department of fish and wildlife assigned to law enforcement duties, motor vehicle inspectors, full-time deputy sheriffs employed by the state of Vermont, investigators employed by the criminal division of the office of the attorney general, department of state’s attorneys, department of health or office of the secretary of state, who have attained full-time certification from the Vermont criminal justice training council, who are required to perform law enforcement duties as the primary function of their employment, and who may be subject to mandatory retirement permissible under 29 U.S.C. section 623(j), and full-time firefighters employed by the state of Vermont, who are first included in membership of the system on or after July 1, 2000.  Also included under this subdivision are full-time firefighters employed by the state of Vermont.

Sec. 302b.  FULL-TIME STATE FIREFIGHTERS; PARTICIPATION IN

                  GROUP C PLAN

(a)  Full-time firefighters employed by the state of Vermont who are not members of the Group C plan of the Vermont state retirement system shall be eligible to participate in the Group C plan.  Participation in the Group C plan shall be in lieu of participation in any other plan of the Vermont state retirement system.  Election to participate in the Group C plan is irrevocable.

     (b)  If, after July 1, 2005, a full-time firefighter employed by the state of Vermont has not elected to participate in the Group C plan of the Vermont state retirement system, that employee shall remain in the Group F plan of the Vermont state retirement system.

Sec. 303.  INSURANCE RESERVE FUND TRANSFER

     (a)  Notwithstanding 32 V.S.A. § 135, an amount up to $16,500.00 may be transferred from the insurance reserve fund, established under 32 V.S.A. § 134, to the department of housing and community affairs, division of historic preservation, for the repair of damage at Mt. Independence.

Sec. 304.  GRANT ACCEPTANCE; JFO #2098

     (a)  In accordance with Sec. 8 of No. 142 of the Acts of 2002 and 32 V.S.A. § 5, the state homeland security grant to the department of public safety is hereby approved, for use for local and state planning, training and equipment.  The total award is $4,963,000.00, of which $350,000.00 is for expenditure in fiscal year 2003, $3,372,000.00 in fiscal year 2004 and the remainder in fiscal year 2005.

Sec. 305.  32 V.S.A. § 5822(c)(1)(A) is amended to read:

(A)  additional taxes on qualified retirement plans, including individual retirement accounts and medical savings accounts and other tax-favored accounts

Sec. 306.  33 V.S.A. § 1953(a) is amended to read:

(a)  Hospitals shall be subject to an annual assessment as follows:

(1)  Beginning July 1, 2001 2003, each hospital’s annual assessment, except for hospitals assessed under subdivision (2) of this subsection, shall be 3.60 4.50 percent of its net patient revenues (less chronic, skilled and swing bed revenues) for the most recent completed hospital fiscal year as determined by the commissioner from the hospital’s financial reports and other data filed with the department of banking, insurance, securities, and health care administration before December 1 of the previous year.  The commissioner may for good cause exempt any mental hospital or psychiatric facility from assessment under this subchapter if the Secretary of the United States Department of Health and Human Services grants a waiver for such exemption, pursuant to section 1903(w)(3)(E)(ii) of the Social Security Act (42 U.S.C. § 1396b(w)(3)(E)(ii)).

(2)  Beginning April 1, 2003, each mental hospital or psychiatric facility’s annual assessment shall be 3.80 percent.

Sec. 307.  33 V.S.A. § 1954(a) is amended to read:

(a)  Beginning July 1, 2002 2003, each nursing home’s annual assessment shall be $3,166.29 $3,388.25 per bed licensed pursuant to section 7105 of this title on June 30 of the immediately preceding fiscal year.  From the beginning of state fiscal year 2000, the annual assessment for each bed licensed as of the beginning of the fiscal year shall be prorated for the number of days during which the bed was actually licensed and any overpayment shall be refunded to the facility.  To receive the refund, a facility shall notify the commissioner, in writing, of the size of the decrease in the number of its licensed beds and dates on which the beds ceased to be licensed.

Sec. 308.  WAIVER

(a)  The agency of human services shall communicate with the Center for Medicare and Medicaid Services to seek a waiver from the provisions of 42 C.F.R. § 433.68 that would permit the agency to exempt Wake Robin, Merten’s House, and The Arbors from the nursing home assessment pursuant to section 1954 of Title 33.

Sec. 309.  33 V.S.A. § 1955a(a) is amended to read:

(a)  Beginning July 1, 2001 2003, each home health agency’s assessment shall be 12.9 16.0 percent of its net operating revenues from core home health care services, excluding revenues for services provided under Title XVIII of the federal Social Security Act.  The amount of the tax shall be determined by the commissioner based on the home health agency’s most recent audited financial statements, a copy of which shall be provided on or before December 1 of each year to the office of Vermont health access.

Sec. 310.  33 V.S.A. § 1956(b) is amended to read:

(b)  All monies received from or generated to the fund shall be used for the state portion of Medicaid expenditures and for administration of provisions of this subchapter under subsection 1952(c) of this title.  Of the net revenues generated by the $3,166.29 $3,388.25 per bed annual assessment on nursing homes, the net revenues generated by $200.00 per bed shall be used for home- and community-based Medicaid waiver services and the net revenues generated by $1,768.69 per bed, less the total amount of the state share of the inflation factor adjustments for state fiscal year 2002, as calculated by the division of rate setting pursuant to subsection 905(c) of this title, shall be used solely for Medicaid nursing home reimbursement as follows:

* * *

Sec. 311.  Sec. 205 of No. 49 of the Acts of 1999, as amended by Sec. 18 of No. 65 of the Acts of 2001, is further amended to read:

Sec. 205.  SUNSET

33 V.S.A. § 1955a, relating to home health agency assessment, shall expire on July 1, 2003 2005.

Sec. 312.  Sec. 4 of No. 56 of the Acts of 1993, as amended by Sec. 11 of No. 14 of the Acts of 1995, Sec. 71 of No. 59 of the Acts of 1997, Sec. 198 of No. 49 of the Acts of 1999, and Sec. 17 of No. 65 of the Acts of 2001, is further amended to read:

Sec. 4.  EFFECTIVE DATE; REPEAL

(a)  This act shall take effect from passage.

(b)  33 V.S.A. §§ 1953 (hospital assessment) and 1954 (nursing home assessment) are repealed effective July 1, 2003 2005.

Sec. 313.  32 V.S.A. § 5824 is amended to read:

§ 5824.  ADOPTION OF FEDERAL INCOME TAX LAWS

The statutes of the United States relating to the federal income tax, as in effect for taxable year 2001 2002, but without regard to federal income tax rates under Section 1 of the Internal Revenue Code, are hereby adopted for the purpose of computing the tax liability under this chapter.     

Sec. 314.  32 V.S.A. § 7475 is amended to read:

§ 7475.  ADOPTION OF FEDERAL ESTATE AND GIFT TAX LAW

The laws of the United States, relating to the federal estate and gift taxes as in effect on January 1, 2002 2003, are hereby adopted for the purpose of computing the tax liability under this chapter, except with the credit for state death taxes under Sections 2011 and 2604 as in effect on January 1, 2001, of the Internal Revenue Code, and without any deduction for state death taxes under Section 2058 of the Internal Revenue Code.

Sec. 315.  32 V.S.A. § 1003 is amended to read:

§ 1003.  SALARIES

(a)  Each elective officer of the executive department is entitled to an annual salary as follows:

                                                            Annual              Annual              Annual

                                                             Salary              Salary              Salary

                                                              as of                 as of                 as of

                                                             July 1,             January 13,       July 14,

                                                               2001                2002               2002

(1)  Governor                              $119,095         $119,615         $125,572

(2)  Lieutenant Governor     50,254             50,774             53,303

(3)  Secretary of State                     75,327             75,847             79,624

(4)  State Treasurer                         75,327             75,847             79,624

(5)  Auditor of Accounts     75,327             75,847             79,624

(6)  Attorney General                      90,280             90,800             95,322

                                           Annual 

                                           Salary  

                                           as of    

                                                               July 13,

                                                               2003

(1)  Governor                                     $127,456

(2)  Lieutenant Governor                         54,103

(3)  Secretary of State                            80,818

(4)  State Treasurer                                80,818

(5)  Auditor of Accounts                         80,818

(6)  Attorney General                              96,752

(b)  The governor may appoint each officer of the executive branch listed in this subsection at a starting salary ranging from the base salary stated for that position to a salary which does not exceed the maximum salary unless otherwise authorized by this subsection.  The maximum salary for each appointive officer shall be fifty 50 percent above the base salary.  Annually, the governor may grant to each of those officers an annual salary adjustment subject to the maximum salary.  The annual salary adjustment granted to officers under this subsection shall not exceed the average of the total rate of adjustment available to classified employees under the collective bargaining agreement then in effect.  In addition to the annual salary adjustment specified in this subsection, the governor may grant a special salary increase subject to the maximum salary, or a bonus, to any officer listed in this subsection whose job duties have significantly increased, or whose contributions to the state in the preceding year are deemed especially significant.  Special salary increases or bonuses granted to any individual shall not exceed the average of the total rate of adjustment available to classified employees under the collective bargaining agreement then in effect.

(1)  Heads of the following departments, offices and agencies:

                                                              Base                 Base                 Base

                                                             Salary              Salary              Salary

                                                              as of                 as of                 as of

                                                            July 1,              January 13,       July 14,

                                                              2001                2002                2002

(A)  Administration                 $71,811           $72,331           $75,933

(B)  Agriculture, food               60,817             61,337             64,392

       and markets

(C)  Banking, insurance,           67,100             67,620             70,987

       securities, and health

       care administration

(D)  Finance and                      67,100             67,620             70,987

        management

(E)  Housing and                      60,817             61,337             64,392

       community affairs

(F)  Corrections                       67,100             67,620             70,987

(G)  Commerce and                 71,811             72,331             75,933

        community development

(H)  Economic development     60,817             61,337             64,392

(I)  Education               67,100             67,620             70,987

(J)  Employment and training 67,100     67,620             70,987

(K)  Natural resources             71,811             72,331             75,933

(L)  Fish and wildlife    60,817             61,337             64,392

(M)  Forests, parks and           60,817             61,337             64,392

        recreation

(N)  Health                              67,100             67,620             70,987

(O)  Human services                71,811             72,331             75,933

(P)  Labor and industry            60,817             61,337             64,392

(Q)  Liquor control                   60,817             61,337             64,392

(R)  Developmental and            67,100             67,620             70,987

       mental health services

(S)  Military                             60,817             61,337             64,392

(T)  Motor vehicles     60,817             61,337             64,392

(U)  Personnel                          60,817             61,337             64,392

(V)  Public safety                     67,100             67,620             70,987

(W)  Public service      67,100             67,620             70,987

(X)  Social and rehabilitation 67,100     67,620             70,987

        services

(Y)  Prevention, assistance,      67,100             67,620             70,987

       transition, and health access

(Z)  Veterans’ home                 60,817             61,337             64,392

(AA)  Libraries                       60,817             61,337             64,392

(BB)  Taxes                            60,817             61,337             64,392

(CC)  Transportation                71,811             72,331             75,933

(DD)  Environmental    67,100             67,620             70,987

           conservation

(EE)  Defender general            60,817              61,337             64,392

(FF)  Lottery                          60,817              61,337             64,392

(GG)  Buildings and     67,100              67,620             70,987

           general services

(HH)  Aging and disabilities    60,817              61,337             64,392

(II)  Environmental board       60,817              61,337             64,392

       chairperson

(JJ)  Tourism and marketing    60,817              61,337             64,392

                                           Base

                                           Salary

                                           as of

                                                               July 13,

                                                               2003

(A)  Administration                            $77,072

(B)  Aging and disabilities                    65,358

(C)  Agriculture, food

       and markets                                  65,358

(D)  Banking, insurance,

       securities, and health

       care administration                        72,052

(E)  Buildings and

       general services                             72,052

(F)  Commerce and

        community development   77,072

(G)  Corrections                                   72,052

(H)  Defender general                           65,358

(I)  Developmental and

       mental health services                    72,052

(J)  Economic development                  65,358

(K)  Education                                     72,052

(L)  Employment and training   72,052

(M)  Environmental board

         chairperson                                 65,358

(N)  Environmental

           conservation                              72,052

(O)  Finance and

        management                                 72,052

(P)  Fish and wildlife                 65,358

(Q)  Forests, parks and

        recreation                                     65,358

(R)  Health                                           72,052

(S)  Housing and

       community affairs                          65,358

(T)  Human services                77,072

(U)  Labor and industry                        65,358

(V)  Libraries                          65,358

(W)  Liquor control                              65,358

(X)  Lottery                                        65,358

(Y)  Military                                         65,358

(Z)  Motor vehicles                 65,358

(AA)  Natural resources                       77,072

(BB)  Personnel                                   65,358

(CC)  Prevention, assistance,

       transition, and health access           72,052

(DD)  Public safety                               72,052

(EE)  Public service                              72,052

(FF)  Social and rehabilitation

        services                                        72,052

(GG)  Taxes                                        65,358

(HH)  Tourism and marketing               65,358

(II)  Transportation                               77,072

(JJ)  Veterans’ home               65,358

(2)  Directors of the following divisions, offices and boards:

The secretary of administration may include the following positions in any pay plans which may be established under the authority of section 1020(c) of this title, provided the minimum hiring rate does not fall below that in this section.

(A)  Economic opportunity     $51,480         $52,000           $54,590

(B)  Professional regulation       51,480           52,000             54,590

(C)  Child support                    51,480           52,000             54,590

                                           Base

                                           Salary

                                           as of

                                                               July 13,

                                                               2003

(A)  Child support                              $55,409

(B)  Economic opportunity                 55,409

(C)  Professional regulation                 55,409

(3)  If the chairperson of the environmental board is employed on less than a full-time basis, the hiring and salary maximums for that position shall be reduced proportionately.

(4)  When a permanent employee is appointed to an exempt position, the governor may authorize such employee to retain the present salary even though it is in excess of any salary maximum provided in statute.

(c)  The annual salaries of the officers of the judicial branch named below shall be as follows:

                                                            Annual              Annual              Annual

                                                            Salary               Salary               Salary

                                                            as of                 as of                 as of

                                                            July 1,              January 13,       July 14,

                                                            2001                2002                2002

(1)  Chief justice of                      $107,421         $107,941         $113,316

        supreme court

(2)  Each associate justice             102,499           103,019           108,149

(3)  Administrative judge   102,499           103,019           108,149

(4)  Each superior judge      97,416             97,936           102,813

(5)  Each district judge                    97,416             97,936           102,813

(6)  Each magistrate                        73,322             73,842             77,519

(7)  Each judicial bureau     73,322             73,842             77,519

       hearing officer

                                                                        Annual

                                                                        Salary

                                                                        as of

                                                                        July 13,

                                                                        2003

(1)  Chief justice of

        supreme court                             $115,016

(2)  Each associate justice                     109,771

(3)  Administrative judge                       109,771

(4)  Each superior judge                        104,355

(5)  Each district judge                          104,355

(6)  Each magistrate                                78,682

(7)  Each judicial bureau

       hearing officer                                  78,682

(d)  Notwithstanding the maximum salary established in subsection (b) of this section, the defender general shall not receive compensation in excess of the compensation established for the attorney general in this section.

Sec. 316.  COMMISSION ON COMPENSATION AND BENEFITS FOR

                 GOVERNMENTAL SERVICE

(a)  The Snelling Center for Government shall evaluate and recommend appropriate levels and methods of compensation and benefits for legislative branch service, executive branch service at the agency and department head level, and judicial branch service; evaluate and recommend methods and amounts of reimbursement for the reasonable costs of service, including costs of lodging, meals, and travel, and other costs relating to constituent service and communication; and evaluate and recommend any appropriate supplementary employment benefits such as coverage in medical and dental care plans and retirement programs.

(b)  The Snelling Center shall have the assistance of the staff of the legislative council, the joint fiscal office, the agency of administration, the department of employment and training, the office of the court administrator, and any other department or office of state government.

(c)  The Snelling Center shall file a written report of its recommendations and a plan for implementation of the recommendations with the house and senate committees on government operations and appropriations on or before January 15, 2004.

(d)  The sum of $50,000.00 is appropriated from the general fund in fiscal year 2004 to the Snelling Center for Government to perform the study required by this section.

Sec. 317.  32 V.S.A. § 1141(a) is amended to read:

§ 1141.  ASSISTANT JUDGES OF SUPERIOR COURTS

(a)  Each assistant judge of the superior court shall receive $111.22 a day as of July 1, 2001, $113.22 a day as of January 13, 2002, and $118.86 a day as of July 14, 2002 $120.64 a day as of July 13, 2003 for time spent in the performance of official duties and necessary expenses as allowed to classified state employees.

Sec. 318.  32 V.S.A. § 1142(a) is amended to read:

§ 1142.  JUDGES OF PROBATE

(a)  The annual salaries of the judges of probate in the several probate districts, which shall be paid by the state in lieu of all fees or other compensation, shall be as follows:

                                                            Annual              Annual              Annual

                                                             Salary              Salary              Salary

                                                              as of                 as of                 as of

                                                             July 1,             January 13,       July 14,

                                                  2001                2002                2002

(1)  Addison                               $46,764           $47,284           $49,639

(2)  Bennington                             40,577             41,097             43,144

(3)  Caledonia                               46,764             47,284             49,639

(4)  Chittenden                              72,335             72,855             76,483

(5)  Essex                                     22,478             22,998             24,143

(6)  Fair Haven                             34,228             34,748             36,478

(7)  Franklin                                  46,764             47,284             49,639

(8)  Grand Isle                              22,478             22,998             24,143

(9)  Hartford                                 46,764             47,284             49,639

(10)  Lamoille                               34,228             34,748             36,478

(11)  Manchester                          34,228             34,748             36,478

(12)  Marlboro                              40,577             41,097             43,144

(13)  Orange                                 40,577             41,097             43,144

(14)  Orleans                                40,577             41,097             43,144

(15)  Rutland                                 59,946             60,466             63,477

(16)  Washington                          59,946             60,466             63,477

(17)  Westminster                        34,228             34,748             36,478

(18)  Windsor                               40,577             41,097             43,144

                                                            Annual

                                                             Salary

                                                              as of

                                                             July 13,

                                                  2003

(1)  Addison                               $50,384

(2)  Bennington                             43,791

(3)  Caledonia                               50,384

(4)  Chittenden                              77,630

(5)  Essex                                     24,505

(6)  Fair Haven                             37,025

(7)  Franklin                                  50,384

(8)  Grand Isle                              24,505

(9)  Hartford                                 50,384

(10)  Lamoille                               37,025

(11)  Manchester                          37,025

(12)  Marlboro                              43,791

(13)  Orange                                 43,791

(14)  Orleans                                43,791

(15)  Rutland                                 64,429

(16)  Washington                          64,429

(17)  Westminster                         37,025

(18)  Windsor                               43,791

Sec. 319.  32 V.S.A. § 1181 is amended to read:

§ 1181.  COUNTY CLERKS

The annual salaries of the county clerks in the respective counties which shall be paid by the state in lieu of all fees or other compensation paid by the state, shall be as follows:

                                                             Annual Annual Annual

                                                             Salary              Salary              Salary

                                                              as of                 as of                 as of

                                                              July 1,            January 13,       July 14,

                                                              2001                2002                2002

(1)  Addison county                    $50,994           $51,514           $54,079

(2)  Bennington county                  50,994             51,514             54,079

(3)  Caledonia county                    50,994             51,514             54,079

(4)  Chittenden county                   61,804             62,324             65,428

(5)  Essex county                          27,473             27,993             29,387

(6)  Franklin county                       50,994             51,514             54,079

(7)  Grand Isle county                   27,473             27,993             29,387

(8)  Lamoille county                      50,994             51,514             54,079

(9)  Orange county                        50,994             51,514             54,079

(10)  Orleans county                     50,994             51,514             54,079

(11)  Rutland county                      56,806             57,326             60,181

(12)  Washington county   56,806             57,326             60,181

(13)  Windham county                   50,994             51,514             54,079

(14)  Windsor county                    54,110             54,630             57,351

                                                            Annual

                                                             Salary

                                                              as of

                                                              July 13,

                                                              2003

(1)  Addison County                   $54,890

(2)  Bennington County                 54,890

(3)  Caledonia County                   54,890

(4)  Chittenden County                  66,409

(5)  Essex County                         29,828

(6)  Franklin County                      54,890

(7)  Grand Isle County                  29,828

(8)  Lamoille County                     54,890

(9)  Orange County                       54,890

(10)  Orleans County                    54,890

(11)  Rutland County                     61,084

(12)  Washington County              61,084

(13)  Windham County                  54,890

(14)  Windsor County                   58,211

Sec. 320.  32 V.S.A. § 1182(a) is amended to read:

(a)  The annual salaries of the sheriffs of all counties except Chittenden shall be as follows:

                                                                        Annual                          Annual

                                                                         Salary                          Salary

                                                                          as of                             as of

                                                                         July 1,                         July 14,

                                                                          2001                            2002

(1)  Addison County                               $53,466                       $55,070

(2)  Bennington County                             50,000                         55,070

(3)  Caledonia County                               50,000                         55,070

(4)  Chittenden County                              56,581                         58,278

(5)  Essex County                                     50,000                         55,070

(6)  Franklin County                                  50,000                         55,070

(7)  Grand Isle County                              50,000                         55,070

(8)  Lamoille County                                 53,466                         55,070 

(9)  Orange County                                   50,000                         55,070

(10)  Orleans County                                53,466                         55,070

(11)  Rutland County                                 53,466                         55,070

(12)  Washington County                          53,466                         55,070

(13)  Windham County                              53,466                         55,070

(14)  Windsor County                               53,466                         55,070

$55,896 as of July 13, 2003.  The annual salary of the sheriff of Chittenden County shall be $59,152 as of July 13, 2003.

Sec. 321.  32 V.S.A. § 1183(a) is amended to read:

(a)  The annual salaries of state’s attorneys shall be:

                                                            Annual              Annual              Annual

                                                             Salary              Salary              Salary

                                                              as of                 as of                 as of

                                                            July 1,              January 13,       July 14,

                                                              2001                2002                2002

(1)  Addison County                   $70,436           $70,956           $74,490

(2)  Bennington County                 70,436             70,956             74,490

(3)  Caledonia County                   70,436             70,956             74,490

(4)  Chittenden County                  73,664             74,184             77,878

(5)  Essex County                         52,827             53,217             55,868

(6)  Franklin County                      70,436             70,956             74,490

(7)  Grand Isle County                  52,827             53,217             55,868

(8)  Lamoille County                     70,436             70,956             74,490

(9)  Orange County                       70,436             70,956             74,490

(10)  Orleans County                    70,436             70,956             74,490

(11)  Rutland County                     70,436             70,956             74,490

(12)  Washington County              70,436             70,956             74,490

(13)  Windham County                  70,436             70,956             74,490

(14)  Windsor County                   70,436             70,956             74,490

                                                            Annual

                                                             Salary

                                                              as of

                                                            July 13,

                                                              2003

(1)  Addison County                   $75,607

(2)  Bennington County                 75,607

(3)  Caledonia County                   75,607

(4)  Chittenden County                  79,046

(5)  Essex County                         56,706

(6)  Franklin County                      75,607

(7)  Grand Isle County                  56,706

(8)  Lamoille County                     75,607

(9)  Orange County                       75,607

(10)  Orleans County                    75,607

(11)  Rutland County                     75,607

(12)  Washington County              75,607

(13)  Windham County                  75,607

(14)  Windsor County                   75,607

Sec. 322.  2 V.S.A. § 63(a) is amended to read:

§ 63.  SALARY

(a)  The base salary for the sergeant at arms shall be:  

         Base                 Base                 Base

             Salary              Salary              Salary

              as of                 as of                 as of

              July 1,            January 13,       July 14,

          2001                2002                2002

   $33,495.80      $34,015.80      $35,709.96

$36,245.61 as of July 13, 2003.

Sec. 323.  CONTRACTUAL AGREEMENT; APPROPRIATIONS;

                 TRANSFERS OF APPROPRIATIONS; EXEMPT PAY PLANS

(a)  The two-year agreements between the state of Vermont and the Vermont State Employees’ Association, Inc., for the nonmanagement, supervisory, state police, defender general’s office, judiciary, and corrections bargaining units, for the period July 1, 2003 through June 30, 2005, shall be funded by amounts appropriated in other acts of the 2003 biennial session, amounts appropriated in the budget adjustment act of the 2004 session, and the following appropriated amounts:

(1)  The sum of $2,000,000.00 from the general fund for fiscal year 2004 and the sum of $5,919,339.00 from the general fund for fiscal year 2005.

(2)  The sum of $2,704,527.00 from the transportation fund for fiscal year 2005.

(3)  The sum of $166,973.00 from the fish and wildlife fund for fiscal year 2004 and the sum of $235,865.00 from the fish and wildlife fund for fiscal year 2005.

(4)  The sum of $994,940.00 from special funds for fiscal year 2004 and the sum of $1,415,191.00 from special funds for fiscal year 2005.

(5)  The sum of $3,565,200.00 from federal and other funds for fiscal year 2004 and the sum of $5,071,101.00 from federal and other funds for fiscal year 2005.

(b)  With due regard to the possible availability of other funds, for the fiscal years 2004 and 2005, the secretary of administration may transfer from the various appropriations and various funds and from the receipts of the liquor control board such sums as he or she may determine to be necessary to carry out the purposes of this act to the various agencies supported by state funds.

(c)  This section shall include sufficient funding to ensure administration of exempt attorney pay plans, including deputy state’s attorneys and public defenders, subject to the approval of the secretary of administration.

Sec. 324.  RATE OF ADJUSTMENT

(a)  For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. § 1003(b), “the total rate of adjustment available to classified employees under the collective bargaining agreement” shall be deemed to be 3.48 percent for fiscal year 2004 and 4.48 percent for fiscal year 2005.

Sec. 325.  BASE SALARY FOR COMMISSIONER OF INFORMATION AND

                 INNOVATION

     (a)  If the general assembly creates the position of commissioner of information and innovation, the salary shall be set by the governor in accordance with the provisions of 32 V.S.A. § 1003.  The base salary of the commissioner of information and innovation as of the creation of the position shall be $70,987, and as of July 13, 2003 shall be $73,457.

Sec. 326.  EFFECTIVE DATES

     (a)  This section and Secs. 12, 38a(a), 48a, 50b, 73a, 86a, 95c, 95d, 97c, 138a, 146(a), 152, 152a, 192a, 292(b), 294, 303 and 304 shall be effective on passage.

     (b)  Sec. 187b shall take effect on July 1, 2004.  However, if the general assembly accepts the proposal of the commissioner of education provided pursuant to Sec. 187a and therefore enacts a different provision for providing funds for adult education and literacy students of 16 to 20 years of age by July 1, 2004, Sec. 187b is repealed.

   (c)  Sec. 286 (use value appraisal value of farm buildings reduced to $0) shall apply to grand lists for April 1, 2003 and after.

   (d)  Sec. 286a shall take effect July 1, 2003 for April 1, 2004 enrolled.

(e)  Reports required pursuant to Sec. 301c of this act of property deemed abandoned as of December 31, 2002 shall be filed no later than November 1, 2003.  

     (f)  Secs. 302a and 302b shall take effect July 1, 2004.  However, if the general assembly accepts the proposal from the treasurer pursuant to Sec. 302 and therefore enacts a different provision for providing a new group retirement plan for full-time state firefighters, Secs. 302a and 302b shall be repealed.

(g)  Sec. 305 of this act (taxation of tax-favored accounts) shall apply to taxable years beginning on or after January 1, 2003.

     (h)  In Sec. 306, subdivision 1953(a)(2) of Title 33 shall take effect on the date that the United States Department of Health and Human Services grants a waiver to the uniform assessment rate, pursuant to 42 C.F.R. § 433.68(e) and the secretary of human services has filed notice with the legislative committee on administrative rules that the waiver has been granted.  Once a waiver is granted and notice filed, the assessment shall apply from April 1, 2003 on facilities assessed under subdivision 1953(a)(2) of Title 33.  If the United States Department of Health and Human Services fails to grant a waiver, then mental hospitals and psychiatric facilities shall be assessed under subdivision 1953(a)(1) of Title 33.

(i)  Sec. 313 of this act (update to Federal income tax laws) shall apply to tax years beginning on and after January 1, 2002.

(j)  Sec. 314 of this act (update to Federal estate and gift tax laws) shall apply to estates of decedents with a date of death on or after, and gifts made on or after, January 1, 2003.

Approved:  June 18, 2003



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us