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Journal of the House

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THURSDAY, JANUARY 24, 2008

At one o'clock in the afternoon the Speaker called the House to order.

Devotional Exercises

Devotional exercises were conducted by Reverend Paul Essaff of Lighthouse Christian Church, St. Johnsbury/Montpelier.

Message from the Senate No. 10

     A message was received from the Senate by Mr. Marshall, its Assistant Secretary, as follows:

Madam Speaker:

I am directed to inform the House that the Senate has on its part passed Senate bill of the following title:

S. 213.  An act relating to the designation of a portion of state highways in the town of Manchester as class 1 town highways.

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

The Senate has on its part adopted joint resolutions of the following titles:

J.R.S. 45.  Joint resolution providing for a Joint Assembly for the election of two legislative Trustees of the Vermont State Colleges Corporation.

J.R.S. 46.  Joint resolution establishing a procedure for the conduct of the election of two legislative trustees of the Vermont State Colleges Corporation by plurality vote by the General Assembly in 2008.

J.R.S. 47.  Joint resolution relating to weekend adjournment.

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

House Bills Introduced

House bills of the following titles were severally introduced.  Pending first reading of the bills, on motion of Rep. Komline of Dorset, the rules were suspended and the bills were read the first time by number and referred as follows:

 

H. 677

     By Reps. Botzow of Pownal, Bissonnette of Winooski, Donahue of Northfield, Fisher of Lincoln, French of Randolph, Johnson of South Hero, Keenan of St. Albans City, Kitzmiller of Montpelier, Krawczyk of Bennington, Kupersmith of S. Burlington, Malcolm of Pawlet, Milkey of Brattleboro, Miller of Shaftsbury and Orr of Charlotte,

An act relating to the working people with disabilities task force;

To the committee on Human Services.

H. 678

     By Reps. Peterson of Williston, Cheney of Norwich, Clarkson of Woodstock, Clerkin of Hartford, Deen of Westminster, Edwards of Brattleboro, Evans of Essex, Fisher of Lincoln, Keogh of Burlington, Livingston of Manchester, Masland of Thetford, McAllister of Highgate, Minter of Waterbury, Moran of Wardsboro, O’Donnell of Vernon, Pearson of Burlington, Perry of Richford, Rodgers of Glover and Zuckerman of Burlington,

An act relating to studying a lower drinking age;

To the committee on General, Housing and Military Affairs.

H. 679

By Rep. Atkins of Winooski,

An act relating to health and medical benefits for spouses and dependents of retired teachers;

To the committee on Government Operations.

H. 680

     By Reps. Scheuermann of Stowe, Ainsworth of Royalton, Audette of S. Burlington, Branagan of Georgia, Brennan of Colchester, Corcoran of Bennington, Donaghy of Poultney, Fitzgerald of St. Albans City, Hube of Londonderry, Johnson of Canaan, Larrabee of Danville, LaVoie of Swanton, McAllister of Highgate, McNeil of Rutland Town, Minter of Waterbury, O’Donnell of Vernon, Peaslee of Guildhall, Potter of Clarendon, Turner of Milton, Winters of Williamstown and Wright of Burlington,

An act relating to the reduction and elimination of transportation fund appropriations for nonagency of transportation expenses;

To the committee on Appropriations.

 

H. 681

By Rep. Lippert of Hinesburg,

An act relating to burial-transit permits;

To the committee on General, Housing and Military Affairs.

H. 682

By Rep. Atkins of Winooski,

An act relating to errors and omissions property tax appraisal appeal;

To the committee on Ways and Means.

H. 683

By Reps. Martin of Springfield and Emmons of Springfield,

An act relating to sales tax exemption for lettering or grave markers;

To the committee on Ways and Means.

H. 684

By Reps. Akins of Winooski and Consejo of Sheldon,

An act relating to the use of lead sinkers;

To the committee on Fish, Wildlife and Water Resources.

H. 685

By Rep. Deen of Westminster,

An act relating to enforcement of environmental laws;

To the committee on Fish, Wildlife and Water Resources.

H. 686

By Reps. Grad of Moretown, Donaghy of Poultney and Flory of Pittsford,

An act relating to motor vehicle points and driver training schools;

To the committee on Transportation.

H. 687

By Reps. Hosford of Waitsfield and Donahue of Northfield,

An act relating to services for youths with disabilities;

To the committee on Human Services.

 

H. 688

     By Reps. Chen of Mendon, Bray of New Haven, Donaghy of Poultney, Johnson of South Hero, Keenan of St. Albans City, Minter of Waterbury, Pellett of Chester, Shand of Weathersfield and Turner of Milton,

An act relating to automated external defibrillators;

To the committee on Human Services.

H. 689

By Reps. Kitzmiller of Montpelier and Shand of Weathersfield,

An act relating to utility prescriptive rights;

To the committee on Commerce.

H. 690

     By Reps. Bray of New Haven, Ainsworth of Royalton, Botzow of Pownal, Consejo of Sheldon, Godin of Milton, Lawrence of Lyndon, Perry of Richford, Spengler of Colchester and Stevens of Shoreham,

An act relating to Vermont Milk Commission;

To the committee on Agriculture.

Senate Bill Referred

S. 342

Senate bill, entitled

An act relating to Lake Champlain commemorative motor vehicle plates;

Was taken up, read the first time and referred to the committee on Transportation.

Joint Resolution Referred to Committee

J.R.H. 46

Reps. Hube of Londonderry, Keenan of St. Albans City, Acinapura of Brandon, Ainsworth of Royalton, Allard of St. Albans Town, Ancel of Calais, Anderson of Montpelier, Andrews of Rutland City, Aswad of Burlington, Atkins of Winooski, Audette of S. Burlington, Baker of West Rutland, Barnard of Richmond, Bissonnette of Winooski, Bostic of St. Johnsbury, Botzow of Pownal, Branagan of Georgia, Bray of New Haven, Brennan of Colchester, Browning of Arlington, Canfield of Fair Haven, Chen of Mendon, Cheney of Norwich, Clark of St. Johnsbury, Clark of Vergennes, Clarkson of Woodstock, Clerkin of Hartford, Condon of Colchester, Consejo of Sheldon, Copeland-Hanzas of Bradford, Corcoran of Bennington, Courcelle of Rutland City, Davis of Washington, Deen of Westminster, Devereux of Mount Holly, Donaghy of Poultney, Donahue of Northfield, Donovan of Burlington, Dostis of Waterbury, Edwards of Brattleboro, Emmons of Springfield, Errecart of Shelburne, Evans of Essex, Fallar of Tinmouth, Fisher of Lincoln, Fitzgerald of St. Albans City, Flory of Pittsford, Frank of Underhill, French of Randolph, Gervais of Enosburg, Gilbert of Fairfax, Godin of Milton, Grad of Moretown, Haas of Rochester, Head of S. Burlington, Heath of Westford, Helm of Castleton, Hosford of Waitsfield, Howard of Rutland City, Howrigan of Fairfield, Hunt of Essex, Hutchinson of Randolph, Jerman of Essex, Johnson of South Hero, Johnson of Canaan, Keogh of Burlington, Kilmartin of Newport City, Kitzmiller of Montpelier, Klein of East Montpelier, Koch of Barre Town, Komline of Dorset, Krawczyk of Bennington, Kupersmith of S. Burlington, Larocque of Barnet, Larrabee of Danville, Larson of Burlington, LaVoie of Swanton, Lawrence of Lyndon, Lenes of Shelburne, Leriche of Hardwick, Lippert of Hinesburg, Livingston of Manchester, Maier of Middlebury, Malcolm of Pawlet, Manwaring of Wilmington, Marcotte of Coventry, Marek of Newfane, Martin of Springfield, Martin of Wolcott, Masland of Thetford, McAllister of Highgate, McCormack of Rutland City, McCullough of Williston, McDonald of Berlin, McFaun of Barre Town, McNeil of Rutland Town, Milkey of Brattleboro, Miller of Shaftsbury, Minter of Waterbury, Mitchell of Barnard, Monti of Barre City, Mook of Bennington, Moran of Wardsboro, Morley of Barton, Morrissey of Bennington, Mrowicki of Putney, Myers of Essex, Nease of Johnson, Nuovo of Middlebury, Obuchowski of Rockingham, O'Donnell of Vernon, Orr of Charlotte, Otterman of Topsham, Oxholm of Vergennes, Pearson of Burlington, Peaslee of Guildhall, Pellett of Chester, Perry of Richford, Peterson of Williston, Potter of Clarendon, Pugh of S. Burlington, Randall of Troy, Scheuermann of Stowe, Shand of Weathersfield, Sharpe of Bristol, Shaw of Derby, Smith of Morristown, Spengler of Colchester, Stevens of Shoreham, Sweaney of Windsor, Symington of Jericho, Trombley of Grand Isle, Turner of Milton, Valliere of Barre City, Westman of Cambridge, Weston of Burlington, Wheeler of Derby, Winters of Williamstown, Wright of Burlington, Zenie of Colchester and Zuckerman of Burlington offered a joint resolution, entitled

Joint resolution relating to advocating withdrawal of proposed U.S. Treasury regulations that the U.S. Internal Revenue Service issued on September 28, 2007 eliminating the deductibility of reserves of a captive insurance company participating in a consolidated federal income tax return;

Whereas, the cost  and availability of insurance are significant challenges for many businesses, prompting an increasing number of corporations to establish within their corporate framework insurance subsidiaries known as captive insurance companies, and

Whereas, more than 5,000 captive insurance companies have now been established worldwide including 823 licensed in the state of Vermont, and

Whereas, over 25 years ago, the state of Vermont recognized that many captive insurance companies, if offered a comprehensive, knowledgeable, and stable regulatory environment would locate in this state, creating professional employment opportunities arising from the management and regulation of their operations, and

Whereas, beginning with Act 28 of 1981, the Vermont General Assembly  adopted a series of laws, codified as chapter 141 of Title 8, that established a comprehensive, knowledgeable, and stable regulatory environment for the captive insurance industry, and

Whereas, the captive insurance industry now generates over 1,400 jobs (direct and indirect) in Vermont, and

Whereas, an additional incentive to organize a captive insurance company in the United States has been the ability, in accordance with existing U.S. Treasury Regulation § 1.1502, to take a current tax deduction for both the loss reserves and unearned income premium reserves that intercompany insurance transactions generate between members of a group of corporations filing on a consolidated basis, and

Whereas, these reserves represent an actuarially determined amount of funds that a captive insurance company must maintain under Vermont law to pay future claims and loss adjustment expenses, and

Whereas, on September 28, 2007, the U.S. Internal Revenue Service published proposed Treasury Regulation §1.1502-13(e) that for federal tax purposes would eliminate these reserves and would defer tax deductibility until a subsequent year in which the claim or expense is actually paid, and

Whereas, under the proposed regulation, affected insurance companies include members of a consolidated tax group (which by federal tax law excludes foreign insurance companies) that earn five percent or more of their premiums from insuring risks of other members of the group, and

Whereas, the finalization of proposed U.S. Treasury Regulation § 1.1502-13(e) would adversely impact a significant number of captive insurance companies domiciled in Vermont and their parent corporations, and

Whereas, the disallowance of this federal income tax benefit could result in captive insurance companies licensed in the state of Vermont and in other U.S. domiciles to consider relocating to offshore domiciles that the proposal does not affect, thereby continuing to enjoy the tax advantage of deductibility of reserves, and

Whereas, finalization of this proposed change in federal tax regulations would have a significant negative impact on Vermont jobs and would reduce state general fund revenue, now therefore be it

Resolved by the Senate and House of Representatives:

That the General Assembly urges the U.S. Treasury secretary and the U.S. Internal Revenue Service to withdraw proposed U.S. Treasury Regulation § 1.1502-13(e), and be it further

Resolved:  That the secretary of state be directed to send a copy of this resolution to U.S. Secretary of the Treasury Henry Paulson and to the Vermont Congressional Delegation.

Which was read and, in the Speaker’s discretion, treated as a bill and referred to the committee on Commerce.

Joint Resolutions Placed on Calendar

The Speaker placed before the House the following resolutions which were read and in the Speaker’s discretion, placed on the Calendar for action tomorrow under Rule 52.

J.R.S. 45

     By Senator Shumlin,

     Joint resolution providing for a Joint Assembly for the election of two legislative Trustees of the Vermont State Colleges Corporation.

Resolved by the Senate and House of Representatives:

That the two Houses meet in Joint Assembly on Thursday, February 21, 2008, at ten o’clock and thirty minutes in the forenoon to elect two legislative Trustees of the Vermont State Colleges Corporation to serve a four year term commencing March 1, 2008, and expiring on March 1, 2012.  In case election of all such Trustees shall not be made on that day, the two Houses shall meet in Joint Assembly at ten o’clock and thirty minutes in the forenoon, on each succeeding day, Saturdays and Sundays excepted, and proceed in such election, until all such Trustees are elected.

J.R.S. 46

     By Senator Shumlin,

     Joint resolution establishing a procedure for the conduct of the election of two legislative trustees of the Vermont State Colleges Corporation by plurality vote by the General Assembly in 2008.

Whereas, in recent years it has become increasingly necessary to shorten the length of time spent by the General Assembly in joint session for the election of various officials, and

Whereas, if elections for multiple vacancies were to be decided by a plurality vote, then a great savings of time can be effectuated, now therefore be it

Resolved by the Senate and House of Representatives:

That, notwithstanding the current provisions of Joint Rule 10, and for this election only, the election of two legislative trustees of the Vermont State Colleges Corporation at a Joint Assembly to be held on February 21, 2008, shall be governed by the following procedure:

(1)  All candidates for the office of Trustee shall be voted upon and decided on the same ballot; members may vote for any number of candidates up to and including the maximum number of vacancies to be filled, which in this case shall be two.

(2)  The two candidates receiving the greater number of votes shall be declared elected to fill the two vacancies.

(3)  In the event that the first balloting for the Trustee vacancies results in a tie vote for one or more of the two vacant positions, then voting shall continue on successive ballots until the vacancies have been filled, again by election declared of the two candidates receiving the greater number of votes.

Joint Resolution Adopted in Concurrence

J.R.S. 47

Joint resolution, entitled

Joint resolution relating to weekend adjournment;

     By Senator Shumlin,

Resolved by the Senate and House of Representatives:

That when the two Houses adjourn on Friday, January 25, 2008, it be to meet again no later than Tuesday, January 29, 2008.

Was taken up read and adopted in concurrence.

Third Reading; Bills Passed

House bills of the following titles were severally taken up, read the third time and passed:

H. 563

House bill, entitled

An act relating to debt financing for the Vermont Housing Finance Agency;

H. 644

House bill, entitled

An act relating to the Uniform Commercial Code.

Adjournment

At one o’clock and thirty minutes in the afternoon, on motion of Rep. Komline of Dorset, the House adjourned until tomorrow at nine o’clock and thirty minutes in the forenoon.

 

 

 



Published by:

The Vermont General Assembly
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Montpelier, Vermont


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