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Senate Calendar

wednesday,  february 1, 2006

30th DAY OF ADJOURNED SESSION

TABLE OF CONTENTS

                                                                                                                Page No.

ACTION CALENDAR

Consideration Postponed Until Wednesday, February 1, 2006

Third Reading

S. 267     Placing a security freeze on a credit report......................................... 118

                  Sen. Sears amendment................................................................... 118

NEW BUSINESS

Second Reading

Favorable with Recommendation of Amendment

S. 88       Relating to the state labor relations board membership....................... 118

                  Government Operations Committee Report.................................... 118

                  Appropriations Committee Report................................................. 120

S. 138     Use value enrollment of municipal watershed land.............................. 120

                  Finance Committee Report............................................................ 120

Favorable with Proposal of Amendment

H. 404    Access to mental health and substance abuse providers..................... 122

                  Finance Committee Report............................................................ 122

NOTICE CALENDAR

Favorable with Recommendation of Amendment

S. 50       Relating to allowing chiefs of police to disperse riots.......................... 123

                  Judiciary Committee Report........................................................... 123

S. 184     Violation of sex offender registry requirements................................... 124

                  Judiciary Committee Report........................................................... 124

S. 250     Relating to cropping a dog’s ears for  nontherapeutic purposes.......... 124

                  Judiciary Committee Report........................................................... 125

S. 284     Relating to personal information......................................................... 127

                  Finance Committee Report............................................................ 127


Favorable with Proposal of Amendment

H. 617    Relating to fiscal year 2006 budget adjustments (for text of report ...........                   of  Appropriations Committee see ADDENDUM to Senate Calendar ................................................                   of Wednesday, February 1, 2006)

H. 627    Relating to the special environmental revolving fund............................ 139                              Natural Resources and Energy Committee Report......................................................................... 139

ORDERED TO LIE

S. 112     Relating to the practice of optometry................................................. 140

S. 157     Relating to rulemaking for Vermont origin.......................................... 140




 

ORDERS OF THE DAY

ACTION CALENDAR

Consideration Postponed until Wednesday, February 1, 2006

Third Reading

S. 267

An act relating to placing a security freeze on a credit report.

AMENDMENT TO S. 267 TO BE OFFERED BY SENATOR SEARS, ON BEHALF OF THE COMMITTEE ON JUDICIARY, BEFORE THIRD READING

Senator Sears, on behalf of the Committee on Judiciary, moves to amend the bill by adding a new section to be Sec. 4 to read as follows:

Sec. 4.  9 V.S.A. § 2480h(l)(10) is added to read:

(10)  Any property and casualty insurance company for use in setting or adjusting a rate or underwriting for property and casualty insurance purposes.

NEW BUSINESS

Second Reading

Favorable with Recommendation of Amendment

S. 88

An act relating to the state labor relations board.

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

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

Sec. 1.  3 V.S.A. § 921 is amended to read:

§ 921.  CREATION; MEMBERSHIP, COMPENSATION

(a)(1)  There is hereby created a state labor relations board composed of five six members, of whom not more than three shall be of the same political party.  The governor shall appoint the members with the advice and consent of the senate for a term of six years or for the unexpired portion thereof in such manner that not more than one term shall expire in the same yearAppointments by the governor shall be made within 60 days of an expired term or vacancy.  The governor shall appoint two members from a list of eight nominees submitted jointly by the following labor organizations:  the Vermont AFL-CIO, the Vermont State Employees’ Association, the Vermont National Education Association, the Vermont chapters of United Electrical, Radio, and Machine Workers of America, and the International Brotherhood of Teamsters.  The governor shall appoint two members from a list of eight nominees submitted jointly by the management of the following organizations:  the Vermont League of Cities and Towns, the University of Vermont, the Vermont State Colleges, and the Vermont school boards association, and the department of human resources.  After soliciting and considering nominees submitted by the labor and management organizations described in this subsection, the governor shall appoint two neutral members.  Each neutral member shall be an individual who, at the time of the appointment, is not connected with any labor organization or management position and who reasonably can be considered to be able to serve as an impartial person.  Terms of board members shall be as follows:

(A)  a new member for a six‑year term beginning July 1, 2006, neutral;

(B)  an existing member seat of a six‑year term ending June 30, 2006, neutral;

(C)  an existing member seat of a six‑year term ending June 30, 2007, labor;

(D)  an existing member seat of a six‑year term ending June 30, 2008, management;

(E)  an existing member seat of a six‑year term ending June 30, 2009, labor;

(F)  an existing member seat of a six‑year term ending June 30, 2010, management.

(2)  Board members as of January 1, 2005 shall be permitted to complete their existing term.  To be eligible for appointment to the board a person must be a citizen of the United States and resident of the state of Vermont for one year immediately preceding his or her appointment. A member of the board may not hold any other state office.  Each case that comes before the board for a hearing shall be heard and decided by a panel of three members appointed by the board chairman chairNot Prior to July 1, 2010, not more than two members of a panel shall be of the same political party.  The chair, in his or her discretion, may appoint a five‑member panel to hear and decide a case.  Beginning July 1, 2010, each panel shall consist of at least one member nominated by the labor organizations described in subdivision (1) of this subsection, one member nominated by the management organizations described in subdivision (1) of this subsection, and one neutral member who shall serve as chair.  Two members of a panel shall constitute a quorum with authority to act conduct a hearing, provided that the absent third panel member shall review the record and participate in the panel’s decision.  The board may, in its discretion, review a proposed decision by a panel prior to its issuance for the sole purpose of insuring that questions of law are being decided in a consistent manner.

(b)  The board shall elect a chairman chair from its members.  Beginning July 1, 2010, the board shall elect a chair from its neutral members.

(c)  The board may not be attached to any state department or agency and shall operate independently.

(d)  The members of the board, except the chairman chair or chair of a panel, shall be entitled to compensation of $75.00 $125.00 a day for time spent in the performance of their duties.  The chairman chair or chair of a panel shall be entitled to compensation in the amount of $125.00 $175.00 a day for time spent in the performance of his or her duties.  The members, including the chairman chair, shall be reimbursed for their necessary expenses incurred in the performance of their duties.

(e)  The board may not issue orders for the implementation of which the legislature has not appropriated adequate funds.

(Committee vote: 6-0-0)

Reported favorably by Senator Bartlett for the Committee on Appropriations.

(Committee vote: 5-0-2)

S. 138

An act relating to use value enrollment of municipal watershed land.

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

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

Sec. 1.  10 V.S.A. § 6301a(4) is added to read:

(4)  “Watershed property” means land, but not structures, owned in fee simple by a municipality, situated within that municipality’s water supply drainage basin, and located in another municipality, which is used for preservation of the owner’s municipal water supply.

Sec. 2.  10 V.S.A. § 6306 is amended to read:

§ 6306.  Exemption from taxation

(a)  The rights and interests in real property acquired by a municipality or state agency under the authority of this chapter shall be considered as municipal or state-owned land, as the case may be, with respect to taxation and state reimbursement in lieu of taxes.

(b)  The commissioner of the department of taxes may certify that watershed property or real property acquired by a qualified organization under this chapter is being held and maintained for the purposes expressed in section 6301 of this title.  As a condition of that certification, the commissioner may require that the qualified organization or municipality provide adequate assurances that the property is being so held and maintained, including but not limited to written agreements with the department of taxes, deeds, covenants, or other conveyances.  Property which is so certified:

(1)  if in the nature of an interest in fee simple, shall be assessed on the basis of its actual use, or may be enrolled by the qualifying organization or municipality in a current use program under chapter 124 of Title 32; or

(2)  shall be exempt from assessment and taxation, if owned by a qualified organization in the nature of an interest other than fee simple.

For purposes of this section, where a qualified organization holds a lease in the property for a term greater than ten years, including renewal terms, or holds such other interests as the commissioner shall determine to be substantially equivalent to an interest in fee simple, the organization shall be deemed to hold an interest in fee simple.

(c)  After acquisition by a municipality, state agency, or qualified organization of a right or interest in real property under the authority of this chapter, the owner of any remaining right or interest therein not so acquired shall be taxed, under the applicable provisions of chapter 123 of Title 32, only upon the value of those remaining rights or interests to which he the owner retains title.  The state agency or qualified organization, and the department of taxes, shall cooperate with that owner, and with the town assessing such tax, in the determination of the fair market value of any such remaining right or interest.

(d)  Property held by a qualified organization or municipality and taxed or exempted under subsection (b) of this section shall be subject to a conversion tax if the commissioner determines that it is no longer being held and maintained for the purposes expressed in section 6301 of this title.  The amount of the conversion tax shall be five times the amount of the taxes avoided by reason of the exemption in the most recent year.  The conversion tax shall be paid to the municipality in which the property is located.

Sec. 3.  32  V.S.A. § 3752(10) is amended to read:

(10) "Owner" means the person who is the owner of record of any land, provided that a municipality shall not be an owner for purposes of this subchapter, other than a municipality which enrolls watershed property certified under 10 V.S.A. § 6306(b). When enrolled land is mortgaged, the mortgagor shall be deemed the owner of the land for the purposes of this subchapter, until the mortgagee takes possession, either by voluntary act of the mortgagor or foreclosure, after which the mortgagee shall be deemed the owner.

(Committee vote: 5-0-2)

Favorable with Proposal of Amendment

H. 404

An act relating to access to mental health and substance abuse providers.

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

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

Sec. 1.  8 V.S.A. § 4089b(b) is amended to read:

(b)  A health insurance plan shall provide coverage for treatment of a mental health condition and shall:

(1)  not establish any rate, term, or condition that places a greater financial burden on an insured for access to treatment for a mental health condition than for access to treatment for a physical health condition.;

(2)  not exclude from its network or list of authorized providers any licensed mental health or substance abuse provider located within the geographic coverage area of the health benefit plan if the provider is willing to meet the terms and conditions for participation established by the health insurer;

(3)  Any Make any deductible or out-of-pocket limits required under a health insurance plan shall be comprehensive for coverage of both mental health and physical health conditions.   

(Committee Vote: 5-0-2)

(No House amendments.)

NOTICE CALENDAR

Favorable with Recommendation of Amendment

S. 50

An act relating to allowing chiefs of police to disperse riots.

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

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

Sec. 1.  13 V.S.A. § 901 is amended to read:

§ 901.  DUTIES OF OFFICERS

(a)  A district judge, sheriff, deputy sheriff or constable An authorized law enforcement officer having notice or knowledge of the unlawful, tumultuous, or riotous assemblage of three ten or more persons that creates a substantial risk of causing damage to property or injury to persons within his or her jurisdiction, among or as near as he or she can safely come to such the rioters, shall command them in the name of the state of Vermont immediately and peaceably to disperse.  If, after such the command such, the rioters do not disperse, such the officer or magistrate and such other person persons as he or she commands to assist him or her shall apprehend and forthwith take them before a district court.

(b)  For purposes of this section, “authorized law enforcement officer” means a sheriff, a chief of police, the commissioner of public safety, or a designee.  The designee shall be a certified law enforcement officer whose authority is granted or given by the sheriff, chief of police, or commissioner of public safety, either through explicit order or department policy.

(c)  This section shall not be used to impede a citizen’s right to peaceably assemble as guaranteed by the Constitution of the State of Vermont and the United States Constitution.

Sec. 2.  13 V.S.A. § 902 is amended to read:

§ 902.  RIOTERS REFUSING TO DISPERSE

Persons so unlawfully and riotously assembled who, after proclamation made, do not immediately disperse, and persons unlawfully and riotously assembled to the number of three or more who do an unlawful act against a man's person or property or against the public interest, and persons present at the place of an unlawful or riotous assemblage who, when commanded by a magistrate or officer to assist him or to leave the place of such riotous assemblage, fails so to do, If a riot is declared by an authorized law enforcement officer pursuant to section 901 of this title, a person who is present at the location of the riot shall promptly leave the location of the riot when requested to do so by a law enforcement officer.  A person who knowingly violates this section shall each be imprisoned not more than six months or fined not more than $100.00, or both.

and that upon passage, the title be amended to read “AN ACT RELATING TO RIOTS”

(Committee vote: 5-0-1)

S. 184

An act relating to the arrest of a person for a violation of sex offender registry requirements.

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

The Committee recommends that the bill be amended by adding Secs. 2 and 3 to read:

Sec. 2.  13 V.S.A. § 5408 is amended to read:

§ 5408.  RECORD OF ADDRESSES; ARREST WARRANT

(a)  The department shall maintain a record of the addresses of all sex offenders.  The record shall be updated at least every three months.  At any time, if the department is unable to verify the whereabouts and address of a sex offender subject to this subchapter, it shall immediately notify the local law enforcement agency in writing that the sex offender’s whereabouts are unknown.  The department shall also send a copy of the notification to the state’s attorney of the county in which the sex offender’s most recent address is located.

(b)  A sex offender’s failure to report a change of address as required by this subchapter shall be grounds to issue a warrant for the arrest of the sex offender and the provisions of Rule 3 of the Vermont Rules of Criminal Procedure shall not apply to such an arrest.

Sec. 3.  13 V.S.A. § 5409 is amended to read:

§ 5409.  PENALTIES

(a)  A  Except as provided in subsection (b) of this section, a  sex offender who knowingly fails to comply with any provision of this subchapter shall:

(1)  Be imprisoned for not more than two years or fined not more than $1,000.00, or both.  A sentence imposed under this subdivision shall run consecutively to any sentence being served by the sex offender at the time of sentencing.

(2)  For the second or subsequent offense, be imprisoned not more than three years or fined not more than $5,000.00, or both.  A sentence imposed under this subdivision shall run consecutively to any sentence being served by the sex offender at the time of sentencing.

(b)  A sex offender who knowingly fails to comply with any provision of this subchapter for a period of more than five consecutive days shall be imprisoned not more than five years or fined not more than $5,000.00, or both.  A sentence imposed under this subsection shall run consecutively to any sentence being served by the sex offender at the time of sentencing.

(Committee vote: 5-0-1)

S. 250

An act relating to cropping a dog’s ears for nontherapeutic purposes.

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

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

Sec. 1.  LEGISLATIVE FINDINGS

(a)  According to the American Veterinary Medical Association, ear cropping of dogs for nontherapeutic reasons is neither medically indicated nor of benefit to the patient.  This procedure causes pain and distress and, as with all surgical procedures, is accompanied by inherent risks associated with or related to anesthesia, blood loss, and infection. 

(b)  According to the Vermont Veterinary Medical Association (VVMA), few, if any, veterinarians in this state continue to practice ear cropping for nontherapeutic purposes, and the procedure is no longer taught in veterinary medical school.  When the VVMA polled members regarding the practice of ear cropping for dogs, members who responded were completely in favor of banning the procedure by nonveterinarians and voted three to one to ban the procedure outright.

(c)  Ear cropping of dogs for cosmetic purposes is legally banned in many countries (Australia, Great Britain, Austria, Belgium, the Czech Republic Denmark, Finland, Greece, Luxembourg, Norway, Portugal, and Sweden, Switzerland); prohibited by the European Convention for the Protection of Pet Animals (Belgium, Bulgaria, Germany, Lithuania, Romania); and strongly discouraged by a number of national veterinary associations (Argentina, Canada, Bosnia-Herzegovina, Croatia, Estonia, Hong Kong, Hungary, Ireland, Italy, Japan, Malaysia, New Zealand, Poland, South Africa, Spain, Taiwan, and Uruguay).

Sec. 2.  13 V.S.A. § 367 is added to read:

§ 367.  CROPPING DOGS’ EARS

(a)  As used in this section:

(1)  “Ear cropping” means the surgical alteration, manipulation, or removal of any part of a dog’s ear so that the ear then heals in a pointed, erect, or severed state.

(2)  “Therapeutic purpose” means a medically necessary procedure to address disease or injury of the dog’s ear or to address a condition that jeopardizes the dog’s health.  Therapeutic purpose does not include the prevention of an ear infection.

(b)  No person shall perform or otherwise arrange for the performance of an ear‑cropping procedure on a dog.  This subsection does not apply if a person in Vermont arranges to have a dog’s ears cropped in another state in which the practice is legal.

(c)  A person who violates subsection (b) of this section shall be assessed a civil penalty of not more than $3,000.00 for a first offense.  If a person violates subsection (b) of this section and has a prior adjudication for a violation of subsection (b) of this section, such person shall be charged with mutilation under subdivision 352(2) of this title, and upon conviction shall be punished in accordance with that section.

(d)  This section shall not apply to a procedure performed with appropriate anesthesia, by a veterinarian who is licensed to practice in Vermont, solely for therapeutic purpose.

(e)  Nothing in this section shall prohibit any of the following:

(1)  Showing a dog with cropped ears in a dog show or competition.

(2)  Owning or harboring a dog with cropped ears.

(3)  Selling, buying, or adopting a dog with cropped ears.

Sec. 3.  4 V.S.A. § 1102 is amended to read:

§ 1102.  JUDICIAL BUREAU; JURISDICTION

* * *

(b)  The judicial bureau shall have jurisdiction of the following matters:

* * *

(8)  violations of 20 V.S.A. § § 2056a, 2056b, and 2056c, relating to unauthorized disclosure of criminal record information.;

(9)  violations of 7 V.S.A. § 656, relating to illegal possession of alcoholic beverages.;

(10)  violations under 7 V.S.A. § 658(c)(1), relating to an employee of a second class licensee selling alcohol to a minor during a compliance check; and

(11)  violations under 13 V.S.A. § 367(b), relating to cropping a dog’s ears, first offense.

(Committee vote: 4-1-1)

S. 284

An act relating to the protection of personal information.

Reported favorably with recommendation of amendment by Senator Cummings for the Committee on Finance, upon commitment.

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

Sec. 1.  9 V.S.A. chapter 62 is added to read:

CHAPTER 62.  PROTECTION OF PERSONAL INFORMATION

Subchapter 1.  General Provisions

§ 2430.  DEFINITIONS

The following definitions shall apply throughout this chapter unless otherwise required:

(1)  “Consumer” means an individual residing in this state.

(2)  “Data collector” may include, but is not limited to, government agencies, public and private universities, privately and publicly held corporations, limited liability companies, financial institutions, retail operators, and any other entity that, for any purpose, whether by automated collection or otherwise, handles, collects, disseminates, or otherwise deals with nonpublic personal information.

(3)  “Encryption” means use of an algorithmic process to transform data into a form in which the data is rendered unreadable or unusable without use of a confidential process or key.

(4)(A)  “Personal information” means an individual’s first name or first initial and last name in combination with any one or more of the following data elements, when either the name or the data elements are not encrypted or redacted:

(i)  Social Security number;

(ii)  Driver’s license number or state identification card number;

(iii)  Account number or credit or debit card number, if circumstances exist in which the number could be used without additional identifying information, access codes, or passwords;

(iv)  Account passwords or personal identification numbers or other access codes.

(B)  “Personal information” does not mean publicly available information that is lawfully made available to the general public from federal, state, or local government records.

(5)  “Records means any material on which written, drawn, spoken, visual, or electromagnetic information is recorded or preserved, regardless of physical form or characteristics.

(6)  “Redaction” means the rendering of data so that it is unreadable or is truncated so that no more than the last four digits of the identification number are accessible as part of the data.

(7)(A)  “Security breach” means unauthorized acquisition or access of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by the data collector.

(B)  “Security breach” does not include good faith acquisition of personal information by an employee or agent of the data collector for a legitimate purpose of the data collector, provided that the personal information is not used for a purpose unrelated to the data collector’s business or subject to further unauthorized disclosure.

Subchapter 2.  Security Breach Notice Act

§ 2435.  NOTICE OF SECURITY BREACHES

(a)  This section shall be known as the Security Breach Notice Act.

(b)  Notice of breach.

(1)  Except as set forth in subsection (d) of this section, any data collector that owns or uses computerized personal information that includes personal information concerning a consumer shall notify the consumer that there has been a security breach following discovery or notification to the data collector of the breach.  Notice of the breach shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of the law enforcement agency, as provided in subdivision (3) of this subsection, or with any measures necessary to determine the scope of the breach and restore the reasonable integrity, security, and confidentiality of the data system.

(2)  Any data collector that maintains or possesses computerized data containing personal information of a consumer that the business does not own or license or any data collector that conducts business in Vermont that maintains or possesses records or data containing personal information that the data collector does not own or license shall notify the owner or licensee of the information of any security breach immediately following discovery of the breach, consistent with the legitimate needs of law enforcement as provided in subdivision (3) of this subsection.

(3)  The notice required by this subsection shall be delayed if a law enforcement agency informs the data collector that notification may impede a criminal investigation or jeopardize national or homeland security, provided that such request is made in writing or the data collector documents such request contemporaneously in writing, including the name of the law enforcement officer making the request and the officer’s law enforcement agency engaged in the investigation.  The notice required by this section shall be provided without unreasonable delay after the law enforcement agency communicates to the data collector its determination that notice will no longer impede the investigation or jeopardize national or homeland security.

(4)  The notice shall be clear and conspicuous.  The notice shall include a description of the following:

(A)  The incident in general terms.

(B)  The type of personal information that was subject to the unauthorized access or acquisition.

(C)  The general acts of the business to protect the personal information from further unauthorized access or acquisition.

(D)  A toll-free telephone number that the consumer may call for further information and assistance.

(E)  Advice that directs the consumer to remain vigilant by reviewing account statements and monitoring free credit reports.

(6)  For purposes of this subsection, notice to consumers may be provided by one of the following methods:

(A)  Direct notice to consumers, which may be by one of the following methods:

(i)  Written notice mailed to the consumer’s residence;

(ii)  Electronic notice, for those consumers for whom the data collector has a valid e-mail address and who have agreed to receive communications electronically if the notice provided is consistent with the provisions regarding electronic records and signatures for notices legally required to be in writing as set forth in 15 U.S.C. § 7001; or

(iii)  Telephonic notice, provided that telephonic contact is made directly with each affected consumer, and the telephonic contact is not through a prerecorded message.

(B)  Substitute notice, if the data collector demonstrates that the cost of providing written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision, to affected consumers would exceed $5,000.00 or that the affected class of affected consumers to be provided written or telephonic notice, pursuant to subdivision (A)(i) or (iii) of this subdivision (6), exceeds 5,000, or the data collector does not have sufficient contact information.  Substitute notice shall consist of all of the following:

(i)  conspicuous posting of the notice on the data collector’s

website page if the data collector maintains one; and

(ii)  notification to major statewide and regional media.

(c)  In the event a data collector provides notice to more than 1,000 consumers at one time pursuant to this section, the data collector shall notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in 15 U.S.C. § 1681a(p), of the timing, distribution, and content of the notice.

(d)(1)  Notice of a security breach pursuant to subsection (b) of this section is not required if the data collector establishes that misuse of personal information is not reasonably possible and the data collector provides notice of the determination that the misuse of the personal information is not reasonably possible pursuant to the requirements of this subsection.  If the data collector establishes that misuse of the personal information is not reasonably possible, the data collector shall provide notice of its determination that misuse of the personal information is not reasonably possible and a detailed explanation for said determination to the Vermont attorney general or to the department of banking, insurance, securities, and health care administration in the event that the data collector is a person or entity licensed or registered with the department under Title 8 or this title.  The data collector may designate its notice and detailed explanation to the Vermont attorney general or the department of banking, insurance, securities, and health care administration as “trade secret” if the notice and detailed explanation meet the definition of trade secret contained in subdivision 317(c)(9) of Title 1.

(2)  If a data collector that established that misuse of personal information was not reasonably possible under subdivision (1) of this subsection obtains facts indicating that misuse of the personal information has occurred or is occurring, the data collector shall provide notice of the security breach pursuant to subsection (b) of this section.

(e)  Any waiver of the provisions of this subchapter is contrary to public policy and is void and unenforceable.

(f)  A financial institution that is subject to the following guidances, and any revisions, additions, or substitutions relating to said interagency guidance shall be exempt from this section:

(1)  The Federal Interagency Guidance Response Programs for Unauthorized Access to Consumer Information and Customer Notice, issued on March 7, 2005, by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision; or

(2)  Final Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice, issued on April 14, 2005, by the National Credit Union Administration.

(g)  Enforcement.

(1)  With respect to all data collectors and other entities subject to this subchapter, other than state or municipal government entities or a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general, state’s attorney, and courts shall have full authority to investigate potential violations of this subchapter and to prosecute, obtain and impose remedies for a violation of this subchapter or any rules or regulations made pursuant to this chapter as the attorney general, state’s attorney, and courts have under chapter 63 of this title.

(2)  With respect to a data collector that is a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department of banking, insurance, securities and health care administration shall have the full authority to investigate potential violations of this subchapter and to prosecute, obtain, and impose remedies for a violation of this subchapter or any rules or regulations adopted pursuant to this subchapter, as the department has under Title 8 or this title or any other applicable law or regulation.

(3)  With respect to the state and any state agency, any state political subdivision, and any agent or employee of a government agency, an aggrieved person shall have the same right to seek an injunction as under section 319 of Title 3.

Subchapter 3.  Social Security Number Protection Act

§ 2440.  SOCIAL SECURITY NUMBER PROTECTION

(a)  This section shall be known as the Social Security Number Protection Act.

(b)  Except as provided in subsection (c) of this section, a business may not do any of the following:

(1)  Intentionally communicate or otherwise make available to the general public an individual’s Social Security number.

(2)  Intentionally print or imbed an individual’s Social Security number on any card required for the individual to access products or services provided by the person or entity.

(3)  Require an individual to transmit his or her Social Security number over the internet unless the connection is secure or the Social Security number is encrypted.

(4)  Require an individual to use his or her Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(5)  Print an individual’s Social Security number on any materials that are mailed to the individual, unless state or federal law requires the Social Security number to be on the document to be mailed.

(6)  Sell, lease, lend, trade, rent, or otherwise intentionally disclose an individual’s Social Security number to a third party without written consent to the disclosure from the individual, when the party making the disclosure knows or in the exercise of reasonable diligence would have reason to believe that the third party lacks a legitimate purpose for obtaining the individual’s Social Security number.

(c)  Subsection (b) of this section shall not apply:

(1)  When a Social Security number is included in an application or in documents related to an enrollment process, or to establish, amend, or terminate an account, contract, or policy; or to confirm the accuracy of the Social Security number for the purpose of obtaining a credit report pursuant to 15 U.S.C. § 1681(b)(2).  A Social Security number that is permitted to be mailed under this section may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope without the envelope having been opened.

(2)  To the collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification.

(3)  To the opening of an account or the provision of or payment for a product or service authorized by an individual.

(4)  To the collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the fair credit reporting act, 15 U.S.C. § 1681, et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(5)  To a business acting pursuant to a court order, warrant, subpoena, or when otherwise required by law.

(6)  To a business providing the Social Security number to a federal, state, or local government entity, including a law enforcement agency and court, or their agents or assigns.

(7)  To a Social Security number that has been redacted.

(8)  To a business that has used, prior to January 1, 2007, an individual’s Social Security number in a manner inconsistent with subsection (b) of this section, which may continue using that individual’s Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(A)  The use of the Social Security number is continuous.  If the use is stopped for any reason, subsection (b) of this section shall apply.

(B)  The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section.

(C)  A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section within 30 days of the receipt of the request.  There shall be not be a fee or charge for implementing the request.

(D)  The person or entity does not deny services to an individual because the individual makes a written request pursuant to this subsection.

(d)  Except as provided in subsection (e) of this section, the state and any state agency, state political subdivision, and agent or employee of a government agency may not do any of the following:

(1)  Collect a Social Security number from an individual unless authorized by law to do so or unless the collection of the Social Security number or records containing the Social Security number is related to the performance of that agency’s duties and responsibilities as prescribed by law.

(2)  Fail, when collecting a Social Security number from an individual, to segregate that number on a separate page from the rest of the record, or as otherwise appropriate, in order that the Social Security number can be more easily redacted pursuant to a valid public records request.

(3)  Fail, when collecting a Social Security number from an individual, to provide, at the time of or prior to the actual collection of the Social Security number by that agency, that individual, upon request, with a statement of the purpose or purposes for which the Social Security number is being collected and used.

(4)  Use the Social Security number for any purpose other than the purpose stated.

(5)  Intentionally communicate or otherwise make available to the general public a person’s Social Security number.

(6)  Intentionally print or imbed an individual’s Social Security number on any card required for the individual to access government services.

(7)  Require an individual to transmit the individual’s Social Security number over the internet, unless the connection is secure or the Social Security number is encrypted.

(8)  Require an individual to use the individual’s Social Security number to access an internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website.

(9)  Print an individual’s Social Security number on any materials that are mailed to the individual, unless a state or federal law requires that the Social Security number be on the document to be mailed.  A Social Security number that is permitted to be mailed under this subdivision may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope,  or visible on an envelope, without the envelope having been opened.

(e)  Subsection (d) of this section does not apply to:

(1)  Social Security numbers or other identifying information disclosed to another governmental entity or its agents, employees, or contractors if disclosure is necessary for the receiving entity to perform its duties and responsibilities.  The receiving governmental entity and its agents, employees, and contractors shall maintain the confidential and exempt status of such numbers.

(2)  Social Security numbers or other identifying information disclosed pursuant to a court order, warrant, or subpoena.

(3)  Social Security numbers or other identifying information disclosed for public health purposes pursuant to and in compliance with requirements of the department of health under Title 18.

(4)  The collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification.

(5)  Social Security numbers or other identifying information that has been redacted.

(6)  A state agency or state political subdivision that has used, prior to January 1, 2007, an individual’s Social Security number in a manner inconsistent with subsection (d) of this section, which may continue using that individual’s Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(A)  The use of the Social Security number is continuous.  If the use is stopped for any reason, subsection (b) of this section shall apply.

(B)  The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section.

(C)  A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section is implemented within 30 days of the receipt of the request.  There shall not be a fee or charge for implementing the request.

(D)  The state agency or state political subdivision does not deny services to an individual because the individual makes a written request pursuant to this subdivision.

(7)  Certified copies of vital records issued by the health department and other authorized officials pursuant to part 6 of Title 18.

(8)  A recorded document in the official records of the town clerk or municipality.

(9)  A document filed in the official records of the courts.

(f)  Any person has the right to request that a town clerk or clerk of court remove from an image or copy of an official record placed on a town’s or court’s internet website available to the general public or an internet website available to the general public to display public records by the town clerk or clerk of court, the person’s Social Security number, employer taxpayer identification number, driver’s license number, state identification number, passport number, checking account number, savings account number, credit card or debit card number, or personal identification number (PIN) code or passwords contained in that official record.  The request must be made in writing, legibly signed by the requester, and delivered by mail, facsimile, or electronic transmission, or delivered in person to the town clerk or clerk of court.  The request must specify the personal information to be redacted, information that identifies the document that contains the personal information and unique information that identifies the location within the document that contains the Social Security number, employer taxpayer identification number, driver’s license number, state identification number, passport number, checking account number, savings account number, credit card number, or debit card number, or personal identification number (PIN) code or passwords to be redacted.  The request for redaction shall be considered a public record with access restricted to the town clerk, the clerk of court, their staff, or upon order of the court.  The town clerk or clerk of court shall have no duty to inquire beyond the written request to verify the identity of a person requesting redaction and shall have no duty to remove redaction for any reason upon subsequent request by an individual or by order of the court, if impossible to do so.  No fee will be charged for the redaction pursuant to such request.  Any person who requests a redaction without proper authority to do so shall be guilty of an infraction, punishable by a fine not to exceed $500.00 for each violation.

(g)  Enforcement.

(1)  With respect to all businesses subject to this subchapter, other than a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the attorney general, state’s attorney, and courts shall have full authority to investigate potential violations of this subchapter, to prosecute, obtain, and impose remedies for a violation of this subchapter, or any rules made pursuant to this subchapter, and to promulgate rules under this subchapter, as the attorney general, state’s attorney, and courts have under chapter 63 of this title.

(2)  With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title, the department shall have full authority to investigate potential violations of this subchapter, and to prosecute, obtain and impose remedies for a violation of this subchapter or any rules adopted pursuant to this subchapter as the department has under Title 8 or this title, or any other applicable law or regulation.

(3)  With respect to the state and any state agency, any state political subdivision, and any agent or employee of a government agency, an aggrieved person shall have the same right to seek an injunction as under section 319 of Title 1.

(4)  No liability shall accrue to a town clerk or clerk of court or to his or her agent for any action related to provisions of this section or for any claims or damages that might result from a Social Security number or other identifying information on the public record or on a register of deeds or clerk of the court’s internet website available to the general public or an internet website available to the general public used by a register of deeds or clerk of court.

Subchapter 4.  Document Safe Destruction Act

§ 2445.  SAFE DESTRUCTION OF DOCUMENTS CONTAINING PERSONAL INFORMATION

(a)  As used in this section:

(1)  “Business” means sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the laws of this state, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution.  The term includes an entity that destroys records.

(2)  “Customer” means an individual who provides personal information to a business for the purpose of purchasing or leasing a product or obtaining a service from the business.

(3)  “Personal information” means the following information that identifies, relates to, describes, or is capable of being associated with a particular individual: his or her signature, Social Security number, physical characteristics or description, passport number, driver’s license or state identification card number, insurance policy number, bank account number, credit card number, debit card number, or any other financial information.

(4)(A)  “Record” means any material, regardless of the physical form, on which information is recorded or preserved by any means, including in written or spoken words, graphically depicted, printed, or electromagnetically transmitted.

(B)  “Record” does not include publicly available directories containing information an individual has voluntarily consented to have publicly disseminated or listed, such as name, address, or telephone number.

(b)  A business shall take all reasonable steps to destroy or arrange for the destruction of a customer’s records within its custody or control containing personal information which is no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or indecipherable through any means for the purpose of:

(1)  ensuring the security and confidentiality of customer personal information;

(2)  protecting against any anticipated threats or hazards to the security or integrity of customer personal information; and

(3)  protecting against unauthorized access to or use of customer personal information that could result in substantial harm or inconvenience to any customer.

(c)  A disposal business that conducts business in Vermont or disposes of personal information of residents of Vermont must take all reasonable measures to dispose of records containing personal information by implementing and monitoring compliance with policies and procedures that protect against unauthorized access to or use of personal information during or after the collection and transportation and disposing of such information.

(d)       This section does not apply to any of the following:

(1)  Any bank, credit union, or financial institution as defined under the federal Gramm Leach Bliley law that is subject to the regulation of the Office of the Comptroller of the Currency, the Federal Reserve, the National Credit Union Administration, the Securities and Exchange Commission, the federal deposit insurance corporation, the office of thrift supervision of the U.S. department of the treasury, or the department of banking, insurance, securities, and health care administration and is subject to the privacy and security provisions of the Gramm Leach Bliley Act, 15 U.S.C. § 6801 et seq.

(2)  Any health insurer or health care facility that is subject to and in compliance with the standards for privacy of individually identifiable health information and the security standards for the protection of electronic health information of the Health Insurance Portability and Accountability Act of 1996.

(3)  Any consumer reporting agency that is subject to and in compliance with the Federal Credit Reporting Act, 15 U.S.C. § 1681 et seq., as amended.

(e)  Enforcement.

(1)  With respect to all businesses subject to this section, other than a person or entity licensed or registered with the department of banking, insurance, securities and health care administration, the attorney general, state’s attorney, and courts shall have full authority to investigate potential violations of this section, and to prosecute, obtain and impose remedies for a violation of this section, or any rules adopted pursuant to this section, and to promulgate rules under this act, as the attorney general, state’s attorney and courts have under chapter 63 of this title.

(2)  With respect to a person or entity licensed or registered with the department of banking, insurance, securities, and health care administration under Title 8 or this title to do business in this state, the department of banking, insurance, securities, and health care administration shall have full authority to investigate potential violations of this act, and to prosecute, obtain, and impose remedies for a violation of this act, or any rules or regulations made pursuant to this act, as the department has under Title 8 and this title, or any other applicable law or regulation.

Sec. 2.  EFFECTIVE DATE

This act shall take effect January 1, 2007.

(Committee vote: 5-0-2)

Favorable with Recommendation of Amendment

H. 617

An act relating to fiscal year 2006 budget adjustments.

Reported favorably with recommendation of proposal of amendment by Senator Bartlett for the Committee on Appropriations.

The Committee recommends that the Senate propose to the House to amend the bill.  (For text of report of the Appropriations Committee, please refer to the ADDENDUM to the Senate Calendar of Wednesday, February 1, 2006).

(Committee Vote: 7-0-0)

(For House amendments, see House Journal for January 1, 2006, page 93.)

H. 627

An act relating to the special environmental resolving fund.

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

The Committee recommends that the Senate propose to the House to amend the bill by adding Secs. 2, 3, and 4, to read:

Sec. 2.  ANNUAL REPORT

The secretary of natural resources shall report in writing to the senate committee on natural resources and energy and the house committee on fish, wildlife and water resources on or before January 31 of each year regarding loans from the special environmental revolving fund under 24 V.S.A. § 4771(a)(5)(B).  The report shall include:  the number of privately owned nonprofit community water systems that have applied for loans from the special environmental revolving fund under 24 V.S.A. § 4771(a)(5)(B); the number of loans issued under 24 V.S.A. § 4771(a)(5)(B); the total dollar amount of loans issued under 24 V.S.A. § 4771(a)(5)(B); and a general description of privately owned nonprofit community water systems receiving loans under 24 V.S.A. § 4771(a)(5)(B), including the age of the development in which each privately owned nonprofit community water system is located.

Sec. 3.  SUNSET

Subdivision 4771(a)(5)(B) of Title 24 (loans for privately owned nonprofit community type systems) is repealed June 30, 2011.

Sec. 4.  EFFECTIVE DATE

This act shall take effect upon passage.

(Committee Vote: 6-0-0)

(No House amendments.)

ORDERED TO LIE

S. 112

An act relating to the practice of optometry.

PENDING ACTION:  Second reading of the bill.

S. 157

An act relating to rulemaking for Vermont origin.

PENDING ACTION:  Second reading of the bill.

REPORTS ON FILE

Pursuant to the provisions of 2 V.S.A. §20(c), one (1) copy of the following reports is on file in the office of the Secretary of the Senate:

70.     Implementation of a Vermont Advance Directive Registry.  (Agency of Human Services, Dept. of Health).  (January 2006).

71.     Legislative Study on Pre-Paid Telephone Cards.  (Agency of Human Services, Dept. of Corrections).  (January 2006).

72.     A Study of the Differences between Tuitions Charged by School Districts and District Net Costs per Pupil with Recommendations to Reduce the Difference.  (Dept. of Education).  (January 2006).

73.     State Land Forest Management Report.  (Agency of Natural Resources, Dept. of Forests, Parks and Recreation).  (January 2006).

74.     Clean & Clear/Vermont Youth Conservation Corps Legislative Report.  (January 2006).

75.     Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund Report.  (Agency of Natural Resources, Dept. of Environmental Conservation).  (January 2006).

76.     Vermont Labor Relations Board 2005 Annual Report.  (January 2006).

77.     Petroleum Cleanup Fund Status Report for Calendar Year 2005.  (Agency of Natural Resources, Waste Management Division).  (January 2006).

78.     Reciprocal Fishing License for Lake Champlain.  (Agency of Natural Resources, Dept. of Fish and Wildlife).  (January 2006).

79.     Conservation License Plate Program.  (Agency of Natural Resources, Dept. of Fish and Wildlife).  (January 2006).

80.     Expenditures in the Lead Sinker Public Education Program.   (Agency of Natural Resources, Dept. of Fish and Wildlife).  (January 2006).

81.     Management of the Deer Herd.  (Agency of Natural Resources, Dept. of Fish and Wildlife).  (January 2006).

82.     Voice over Internet Protocol (VOIP) in State Government.  (Agency of Administration, Dept. of Information and Innovation).  (January 2006).

83.     Economic Development Study Committee Report.  (January 2006).

PUBLIC HEARINGS

     Wednesday, February 8, 2006 – Room 11 – 3:00-6:00 P.M. – Proposed Transportation Program – House Committee on Transportation.

     Tuesday, February 11, 2006 – Room 11 – 7:00-9:00 P.M. – Re:  H.615 – Public Records Act and the Deliberation Process – House Committee on Government Operations.


Public Hearings on Fiscal Year 2007 Budget

(1)  Friday, February 10, 2006, 9:00 a.m. to 12:00 noon, Room 42, State

House – The House Appropriations Committee will hear from Vermont citizens, including representatives of advocacy groups and other organizations, on the subject of fiscal year 2007 appropriations.  Testimony will be scheduled in advance for 5-minute intervals.  To reserve a time slot, please call the Committee office at 802/828-2251.

      (2)  Monday, February 13, 2006, 5:00 to 7:30 p.m. – The House and Senate Appropriations Committees will hold a joint public hearing on Vermont Interactive Television (V.I.T.) to give Vermonters throughout the state an opportunity to express their views about the State budget for fiscal year 2007.  All V.I.T. sites will be available for the hearing:  Bennington, Brattleboro, Castleton, Johnson, Lyndon, Middlebury, Newport, Randolph, Rutland, Springfield, St. Albans, Waterbury, White River Junction, and Williston.  V.I.T.’s web site has an up-to-date location listing, including driving directions and telephone numbers:  www.vitlink.org

For further information about the format of this event, you may call the House Appropriations Committee office at 802/828-2251.  Requests for interpreters should be made to the office no later than 4:00 p.m. on Friday, February 3.

JOINT ASSEMBLY

Thursday, February 16, 200610:30 A.M. – House Chamber – Election of two (2) legislative Trustees of the Vermont State Colleges Corporation.

Legislative candidates for these two (2) Trustee positions are reminded that they must notify the Secretary of State in writing of their candidacy not later than Thursday, February 9, 2006, by 5:00 P.M., pursuant to the provisions of 2  V.S.A. §12(b).  Otherwise their names will not appear on the ballot for these positions.

INFORMATION NOTICE

     The following items were recently received by the Joint Fiscal Committee:

     JFO #2246 – Request from the Department of Public Safety to establish one (1) new limited service position:  Evidence Technician.  This sponsored position is 100% federally funded and associated with a continuing Forensic Science Improvement grant from the U.S. Department of Justice.  Last year the grant was used to fund contractual services and related expenses.  This year the grant will be used to:  train laboratory staff in new areas of forensic analysis; provide continuing education in established and new forensic disciplines; maintain accreditation; and fund the requested Evidence Technician position.  [JFO received 01/25/06]

     JFO #2247 – Request from the Department of Public Safety to establish one (1) new limited service position:  Forensic Chemist II.  This sponsored position is 75% federally funded and associated with a continuing DNA Capacity Enhancement Program Formula grant from the U.S. Department of Justice.  Last year the grant was used to fund the replacement of equipment used in DNA analysis.  This year the grant (with 25% state general funds available in the Department budget) will be used to fund the requested Forensic Chemist II position to screen cases for  DNA and assist DNA analysts.  [JFO received 01/25/06]



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