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Journal of the Senate

________________

Monday, April 30, 2007

The Senate was called to order by the President.

Devotional Exercises

A moment of silence was observed in lieu of devotions.

Pledge of Allegiance

Senator Flanagan then led the members of the Senate in the pledge of allegiance.

Senate Resolution Placed on Calendar

S.R. 18.

Senate resolution of the following title was offered, read the first time and is as follows:

     By Senators Giard and Ayer,

     S.R. 18.  Senate resolution relating to recognizing William McKibben and students from Middlebury College for their insightful leadership and foresight on climate change policy.

Whereas, William (Bill) McKibben is an author who has directed his talents as an author and journalist to advocate on behalf of Planet Earth’s well‑being, and

Whereas, he learned the craft of journalism at the Harvard Crimson, which he led as that distinguished college newspaper’s president, and, immediately after graduation, joined the staff of the New Yorker, a bastion of in‑depth issue‑related journalism, where he wrote many “Talk of the Town” columns and became increasingly concerned about issues related to climate change, and

Whereas, since 1989, when his first book, End of Nature, was published, and most recently in his book Deep Economy: The Wealth of Communities and the Durable Future, his writing has focused on the changes to Earth’s climate and their causes, and on possible alternative societal models to swing the pendulum away from the disastrous future that he foresees if humankind does not change its lifestyle, and

Whereas, he wrote of his love and respect for the outdoors in his recent book, Wandering Home, and

Whereas, aside from his career as a published author, Bill McKibben has taken on the roles of teacher and activist, serving as a scholar‑in‑residence at Middlebury College and as an organizer committed to triggering a fundamental shift in national climate policy, and

Whereas, Bill McKibben and seven recent Middlebury College graduates created a new organization called Step It Up, with the stated goal of convincing Congress to enact public policies that will result in an 80‑percent reduction of carbon emissions by the year 2050, and

Whereas, as the organization’s first national political show of force, it arranged 1,400 rallies and educational events in all 50 states and the District of Columbia that occurred on Saturday, April 14, 2007, and

Whereas, Bill McKibben and his cohort of young organizers are continuing their vital national education and lobbying campaign to convince Congress and all Americans that climate change is a topic of the greatest national importance, now therefore be it

Resolved by the Senate:

That the Senate of the State of Vermont recognizes William McKibben and students from Middlebury College for their leadership on climate change, and be it further

Resolved:  That the Secretary of the Senate be directed to send a copy of this resolution to Bill McKibben and to Step It Up in Burlington.

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

Rules Suspended; Proposal of Amendment; Third Reading Ordered

H. 537.

Appearing on the Calendar for notice, on motion of Senator Shumlin, the rules were suspended and House bill entitled:

An act making appropriations for the support of government.

Was taken up for immediate consideration.

     Senator Bartlett, for the Committee on Appropriations, to which the bill was referred, reported recommending that the Senate propose to the House to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:


Sec. 1.  SHORT TITLE

     (a)  This bill may be referred to as the BIG BILL - Fiscal Year 2008 Appropriations Act.

Sec. 2.  PURPOSE

     (a)  The purpose of this act is to provide appropriations for the operations of state government during fiscal year 2008.  It is the express intent of the general assembly 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, 2007.  Agency and department heads are directed to implement staffing and service levels at the beginning of fiscal year 2008 so as to meet this condition unless otherwise directed by specific language in this act or other acts of the general assembly.

Sec. 3.  APPROPRIATIONS

     (a)  It is the intent of the general assembly that this act serve as the primary source and reference for appropriations for fiscal year 2008.

     (b)  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

single-year appropriations, and only for the purpose indicated, and shall be paid from funds shown as the source of funds.  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.

     (c)  Unless codified or otherwise specified, all narrative portions of this act apply only to the fiscal year ending June 30, 2008. 

     (d)  The balance of any appropriations remaining unexpended and unencumbered at the end of the fiscal year shall revert to the appropriate fund balance unless otherwise specified in this act or other acts of the general assembly.  Refunds of expenditures and reimbursements shall be credited to the appropriate fund and to appropriation accounts in the current fiscal year.

Sec. 4.  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 property management, repair and maintenance, rental expenses, insurance, postage, travel, energy and utilities, office and other supplies, equipment including motor vehicles, highway materials and construction, expenditures for the purchase of land, and construction of new buildings and permanent improvements; and similar items.

          (4)  "Personal services" means wages and salaries, fringe benefits, per diems, and contracted third-party services; and similar items.

Sec. 5.  Secretary of administration - secretary's office

                   Personal services                                           792,281

                   Operating expenses                                         46,494

                   Grants                                                           150,000

                        Total                                                        988,775

               Source of funds                                                               

                   General fund                                                  769,743

                   Interdepartmental transfer                              219,032

                        Total                                                        988,775

     (a)  Of the above appropriation, $150,000 is made available for grants to be awarded on a competitive basis among the 11 existing regional marketing programs (RMP).  In addition to these funds, the portion of the fiscal year 2007 RMP grant appropriation that was allocated to those RMPs which had not had their fiscal year 2007 grant plans approved by March 1, 2007 shall be carried forward to fiscal year 2008 to be added to the amount available for the fiscal year 2008 competitive grants.

     (b)  The number of grants and the amount of the grants shall be established by the secretary of administration.  Review of the grant applications and award of the grants shall be carried out by the chief marketing officer in conjunction with the secretary of administration.

     (c)  Following award of the fiscal year 2008 grants, RMPs shall submit appropriately documented expenses, consistent with the approved grants, to the state for reimbursement.

     (d)  The establishment of one (1) new full-time exempt position – program director – is authorized in fiscal year 2008.  This position shall be transferred and converted from existing vacant positions in the executive branch of state government.  

Sec. 5a.  PROCTOR CANNON

     (a)  This section is intended to clarify the status of the historic Proctor Cannon.  The cannon is owned by the state of Vermont, and has been used, maintained and stored by the 2nd Battery Vermont Light Artillery since 1977.  The secretary of administration in consultation with the Vermont historical society shall obtain an independent assessment as to the current value and condition of the cannon and whether it can be safely used.  A copy of the assessment report shall be provided to the senate committee on appropriations.  The secretary of administration or designee on behalf of the state shall enter into an agreement with the 2nd Battery Vermont Light Artillery that allows the organization to continue to safely use, maintain, and store the cannon.  The 2nd Battery Vermont Light Artillery shall be required to maintain the cannon at its currently assessed condition level and shall maintain adequate and appropriate levels of insurance for use, maintenance, and storage of the cannon.  The agreement shall last for a period of five years and shall be extended for additional periods of five years as long as conditions above are met.  Should the 2nd Battery Vermont Light Artillery organization disband or decline to extend the agreement, the secretary shall take possession of the cannon and make a recommendation to the legislature as to the future home of the cannon.

Sec. 6.  GENERAL FUND REDUCTION

     (a)  The secretary of administration is directed to reduce operating expense appropriations by $155,814 in general funds throughout the executive branch of state government.  It is the intent of the general assembly that all or a majority of this funding reduction shall result from lower in-state travel expenses.  The administration shall continue to encourage departments and agencies to utilize Vermont interactive television for meetings.  The secretary shall report to the joint fiscal committee in November of 2007 on the in-state travel or other operating expense reductions made as a result of this provision.

Sec. 7.  EXEMPT POSITION REDUCTION AND VACANCY SAVINGS

     (a)  The secretary of administration shall achieve $500,000 in general fund savings in the executive branch of state government in fiscal year 2008 through the elimination of exempt positions, or leaving exempt positions vacant.

     (b)  No exempt positions may be created or transferred and converted from the position pool within the executive branch of government during fiscal year  2008 unless said positions have been approved by the general assembly or, when the general assembly is not in session, by the legislative joint fiscal committee at a scheduled meeting.

     (c)  The commissioner of human resources shall submit reports to the joint fiscal committee total positions available in the position pool ten days prior to its July and September meetings and any recommendations for reducing the total authorized positions in state government.  The committee may recommend a cap on pool positions for fiscal year 2008.

Sec. 8.  PAY ACT FUNDING

     (a)  The commissioner of finance and management shall submit a preliminary plan to the joint fiscal committee at its September/October 2007 meeting on levels of funding for pay act for fiscal year 2008 funding.  The report shall outline the funds available and any additional offsets the secretary is planning to offer to meet pay act requirements.

     (b)  At the November meeting of the joint fiscal committee the commissioner shall submit the following report:

          (1)  The allocation by department and section from the fiscal year 2008 pay act appropriation and the appropriation for pay act needs in section 274 of this act and any other offsets to meet pay act needs;

          (2)  The source of funds and the specific percentage of need being met in each department from the allocation;

          (3)  Any proposed transfers between departments to meet pay act needs;

          (4)  A summary of fiscal impacts by department in fiscal year 2008 due to a) shortfalls in pay act funds and b) added assessments internal service funds;

          (5)  A preliminary assessment of the administration’s intention to meet departmental pay act expense roll outs for fiscal year 2009.

     (c)  Notwithstanding any other provision of law to the contrary, the annual salary of any state employee who is not covered by the most recent collective bargaining agreement and who is entitled to an annual salary that exceeds $90,000 prior to the effective date of this act, shall only be increased by 2.25 percent.  The secretary of administration shall redistribute the savings produced by this subsection in an equitable manner to state employees whose base hourly rate is below the livable wage as determined by the joint fiscal office.

Sec. 9.  Information and innovation - communications and information technology

                   Personal services                                        4,560,326

                   Operating expenses                                       864,490

                   Grants                                                           450,000

                        Total                                                     5,874,816

               Source of funds                                                               

                   General fund                                                  115,000

                   Internal service funds                                  5,759,816

                        Total                                                     5,874,816

     (a)  Of the above appropriation, $450,000 is for a grant to the Vermont telecommunications authority created by H.248 of 2007.

Sec. 10  Finance and management - budget and management

                   Personal services                                           996,256

                   Operating expenses                                       222,509

                        Total                                                     1,218,765

               Source of funds                                                               

                   General fund                                                  980,379

                   Interdepartmental transfer                              238,386

                        Total                                                     1,218,765

Sec. 11.  Finance and management - financial operations

                    Personal services                                        2,591,225

                   Operating expenses                                    1,161,363

                        Total                                                     3,752,588

               Source of funds                                                               

                   Special funds                                                   70,903

                   Internal service funds                                  3,681,685

                        Total                                                     3,752,588

     (a)  Pursuant to 32 V.S.A. § 307(e), financial management fund charges not to exceed $5,325,761, plus the costs of fiscal year 2008 salary increases bargained as part of the state/VSEA agreement, are hereby approved.  Of this amount, $1,050,860, plus the costs of fiscal year 2008 salary increases bargained as part of the state/VSEA agreement, will be used to support the HCM system that is operated by the department of human resources information technology division and $593,216, plus the costs of fiscal year 2008 salary increases bargained as part of the state/VSEA agreement, will be used to support the human resources payroll division. 

Sec. 12.  Human resources - operations

                   Personal services                                        2,322,655

                   Operating expenses                                       317,750

                        Total                                                     2,640,405

               Source of funds                                                               

                   General fund                                               1,619,098

                   Internal service funds                                     593,216

                   Interdepartmental transfer                              428,091

                        Total                                                     2,640,405

Sec. 13.  Human resources - HR workforce planning & employment services

                   Personal services                                           777,332

                   Operating expenses                                       391,800

                        Total                                                     1,169,132

               Source of funds                                                               

                   General fund                                                  871,371

                   Special funds                                                 297,761

                        Total                                                     1,169,132

Sec. 14.  Human resources - information technology

                   Personal services                                           555,946

                   Operating expenses                                       494,914

                        Total                                                     1,050,860

               Source of funds                                                               

                   Internal service funds                                  1,050,860

Sec. 15.  Human resources - employee benefits & wellness

                   Personal services                                        1,554,782

                   Operating expenses                                       372,323

                        Total                                                     1,927,105

               Source of funds                                                               

                   Internal service funds                                  1,927,105

Sec. 16.  Libraries

                   Personal services                                        2,039,226

                   Operating expenses                                    1,645,315

                   Grants                                                             70,000

                        Total                                                     3,754,541

               Source of funds                                                               

                   General fund                                               2,506,583

                   Special funds                                                 298,584

                   Federal funds                                                860,814

                   Interdepartmental transfer                                88,560

                        Total                                                     3,754,541

Sec. 17.  Tax - administration/collection

                   Personal services                                      12,058,379

                   Operating expenses                                    2,887,532

                        Total                                                   14,945,911

               Source of funds                                                               

                   General fund                                             14,060,178

                   Special funds                                                 625,733

                   Tobacco fund                                                  58,000

                   Interdepartmental transfer                              202,000

                        Total                                                   14,945,911

Sec. 18.  Buildings and general services - administration

                   Personal services                                        1,936,700

                   Operating expenses                                       333,161

                        Total                                                     2,269,861

               Source of funds                                                               

                   Interdepartmental transfer                           2,269,861

     (a)  The commissioner of the department of buildings and general services and the commissioner of the department of health in collaboration with the Vermont state employees' association shall develop a protocol for identifying and addressing current and potential health hazards in state office buildings.  This protocol shall be submitted to the house and senate committees on institutions and the house committee on general, housing and military affairs and the senate committee on economic development, housing and general affairs for their review by January 15, 2008.  As part of this protocol, a method shall be devised to keep the general assembly informed about sick building complaints.

Sec. 19.  Buildings and general services - engineering

                   Personal services                                        1,926,241

                   Operating expenses                                       440,200

                        Total                                                     2,366,441

               Source of funds                                                               

                   General fund                                               2,321,441

                   Interdepartmental transfer                                45,000

                        Total                                                     2,366,441

Sec. 20.  Buildings and general services - information centers

                   Personal services                                        3,507,600

                   Operating expenses                                    1,402,188

                   Grants                                                             47,300

                        Total                                                     4,957,088

               Source of funds                                                               

                   General fund                                               4,957,088


Sec. 21.  Buildings and general services - purchasing

                   Personal services                                           673,400

                   Operating expenses                                       202,657

                        Total                                                        876,057

               Source of funds                                                               

                   General fund                                                  876,057

Sec. 22.  Buildings and general services - public records

                   Personal services                                           847,200

                   Operating expenses                                       638,143

                        Total                                                     1,485,343

               Source of funds                                                               

                   General fund                                               1,174,083

                   Special funds                                                 311,260

                        Total                                                     1,485,343

Sec. 23.  Buildings and general services - postal services

                   Personal services                                           645,800

                   Operating expenses                                       205,155

                        Total                                                        850,955

               Source of funds                                                               

                   General fund                                                    20,000

                   Internal service funds                                     830,955

                        Total                                                        850,955

Sec. 24.  Buildings and general services - copy center

                   Personal services                                           722,315

                   Operating expenses                                       237,800

                        Total                                                        960,115

               Source of funds                                                               

                   Internal service funds                                     960,115

Sec. 25.  Buildings and general services - fleet management services

                   Personal services                                           468,000

                   Operating expenses                                       188,820

                        Total                                                        656,820

               Source of funds                                                               

                   Internal service funds                                     656,820

Sec. 26.  Buildings and general services - federal surplus property

                   Personal services                                             62,327

                   Operating expenses                                         83,919

                        Total                                                        146,246

               Source of funds                                                               

                   Enterprise funds                                             146,246

Sec. 27.  Buildings and general services - state surplus property

                   Personal services                                             60,341

                   Operating expenses                                         74,196

                        Total                                                        134,537

               Source of funds                                                               

                   Internal service funds                                     134,537

Sec. 28.  Buildings and general services - property management

                   Personal services                                        1,244,300

                   Operating expenses                                    2,917,817

                        Total                                                     4,162,117

               Source of funds                                                               

                   Internal service funds                                  4,162,117

Sec. 29.  Buildings and general services - workers' compensation insurance

                   Personal services                                        1,199,838

                   Operating expenses                                       421,200

                        Total                                                     1,621,038

               Source of funds                                                               

                   Internal service funds                                  1,621,038

     (a)  Pursuant to 32 V.S.A. § 307(e), workers' compensation fund charges not to exceed $8,554,885 are hereby approved.

Sec. 30.  Buildings and general services - general liability insurance

                   Personal services                                           269,723

                   Operating expenses                                         83,800

                        Total                                                        353,523

               Source of funds                                                               

                   Internal service funds                                     353,523

Sec. 31.  Buildings and general services - all other insurance

                   Personal services                                             81,300

                   Operating expenses                                         34,628

                        Total                                                        115,928

               Source of funds                                                               

                   Internal service funds                                     115,928


Sec. 32.  Buildings and general services - fee for space

                   Personal services                                      11,047,932

                   Operating expenses                                  10,029,702

                        Total                                                   22,077,634

               Source of funds                                                               

                   Internal service funds                                22,077,634

     (a)  Pursuant to 29 V.S.A. § 160a(b)(3), facilities operations fund charges not to exceed $22,077,634, plus the costs of fiscal year 2008 salary increases bargained as part of the state/VSEA agreement, are hereby approved.

     (b)  The commissioner shall prepare an analysis of the fee-for-space program with the objective of determining appropriate rates to charge departments that use state-owned buildings.  The department shall conduct a pilot project that will analyze the cost associated with operating state-owned, noncorrectional buildings in the cities of Newport, Rutland, and Springfield.  The analysis shall take into account the actual cost incurred by the state of operating the building, utilities, maintenance, and any other relevant cost.  Local market rates for rental properties shall also be considered.  The analysis shall assess the energy usage at each site and identify any energy efficiency measures that could be accomplished, consistent with the state’s effort to operate energy efficient buildings and include any specific recommendations as to how fee-for-space charges and employee incentives could be designed to provide incentives for energy efficiency.  The analysis and any accompanying recommendations and proposed rates for fiscal year 2009 shall be presented to the joint fiscal committee at its September meeting for review.  

     (c)  The department shall charge the department of fish and wildlife no more than $15,000 for the use of the cold storage facility in Essex Junction during fiscal year 2008. 

Sec. 33.  Geographic information system

                   Grants                                                           430,210

               Source of funds                                                               

                   Special funds                                                 430,210

Sec. 34.  Executive office - governor's office

                   Personal services                                        1,290,419

                   Operating expenses                                       363,028

                        Total                                                     1,653,447

               Source of funds                                                               

                   General fund                                               1,469,970


                   Interdepartmental transfer                              183,477

                        Total                                                     1,653,447

Sec. 35.  Executive office - national and community service

                   Personal services                                           187,996

                   Operating expenses                                       126,191

                   Grants                                                        1,357,662

                        Total                                                     1,671,849

               Source of funds                                                               

                   General fund                                                    56,528

                   Federal funds                                             1,615,321

                        Total                                                     1,671,849

Sec. 36.  Legislative council

                   Personal services                                        1,924,939

                   Operating expenses                                       153,500

                        Total                                                     2,078,439

               Source of funds                                                               

                   General fund                                               2,078,439

Sec. 37.  Legislature

                   Personal services                                        3,904,123

                   Operating expenses                                    2,899,885

                        Total                                                     6,804,008

               Source of funds                                                               

                   General fund                                               6,804,008

     (a)  Of the above appropriation, $450,000 shall be available for fiscal year 2008 expenditures of the health care reform commission created pursuant to 2  V.S.A. § 901.  The health care information technology consultant paid for within this appropriation shall be jointly selected and supervised by the health care reform commission and the chairs of the house and senate committees on appropriations.

Sec. 38.  Legislative information technology

                   Personal services                                           404,005

                   Operating expenses                                       217,253

                        Total                                                        621,258

               Source of funds                                                               

                   General fund                                                  621,258


Sec. 39.  Joint fiscal committee

                   Personal services                                        1,176,259

                   Operating expenses                                         94,509

                        Total                                                     1,270,768

               Source of funds                                                               

                   General fund                                               1,270,768

     (a)  The establishment  of one (1) new full-time exempt position – fiscal analyst - is authorized in fiscal year 2008.  This position shall be converted from the temporary research assistant position. 

     (b)  Effective June 24, 2007, the interim Medicaid Analyst position (# 117017) shall be transferred to the Health Care Reform Commission as a full-time exempt position. 

Sec. 40.  Sergeant at arms

                   Personal services                                           518,079

                   Operating expenses                                         68,292

                        Total                                                        586,712

               Source of funds                                                               

                   General fund                                                  586,371

Sec. 41.  Lieutenant governor

                   Personal services                                           137,937

                   Operating expenses                                         16,775

                        Total                                                        154,712

               Source of funds                                                               

                   General fund                                                  154,712

Sec. 42.  Auditor of accounts

                   Personal services                                        2,951,103

                   Operating expenses                                       142,030

                        Total                                                     3,093,133

               Source of funds                                                               

                   General fund                                                  524,568

                   Special funds                                                   54,431

                   Internal service funds                                  2,514,134

                        Total                                                     3,093,133

     (a)  On or before February 15 of each calendar year, the state auditor of accounts shall report to the house and senate committees on appropriations findings and issues arising from audit reports.  Those agencies and departments that have audit issues shall present a plan to the house and senate committees on appropriations for addressing these issues.

Sec. 43.  State treasurer

                   Personal services                                        2,316,050

                   Operating expenses                                       354,787

                   Grants                                                           100,000

                        Total                                                     2,770,837

               Source of funds                                                               

                    General fund                                               1,130,214

                   Special funds                                              1,542,265

                   Private purpose trust funds                               98,358

                        Total                                                     2,770,837

     (a)  Of the above general fund appropriation, $50,000 shall be deposited into the armed services scholarship fund established in 16 V.S.A. § 2541, and $50,000 shall be deposited into the emergency personnel survivors benefit special fund established in 20 V.S.A. § 3175. 

Sec. 44.  FISCAL YEAR 2008 FUND REVERSION

     (a)  Of the general funds appropriated to the state treasurer, $70,000 shall revert to the general fund.  This reversion shall be composed of $20,000 because there is an available balance in the armed services scholarship fund and $50,000 because there is an available balance in the emergency personnel survivors benefit special fund.

Sec. 45.  State treasurer - unclaimed property

                   Personal services                                           627,773

                   Operating expenses                                       271,467

                        Total                                                        899,240

               Source of funds                                                               

                   Private purpose trust funds                             899,240

Sec. 46.  Vermont state retirement system

                   Personal services                                      23,139,549

                   Operating expenses                                       758,596

                        Total                                                   23,898,145

               Source of funds                                                               

                   Pension trust funds                                    23,898,145

Sec. 46a .  3 V.S.A. § 473(d) is amended to read:

     (d)  Contributions of state. As provided by law, the retirement board shall certify to the governor or governor-elect a statement of the percentage of the payroll of all members sufficient to fund all operating expenses of the Vermont state retirement system, except for investment fees, which will be paid for from the corpus of the Vermont state retirement system, and all contributions of the state which will become due and payable during the next biennium.  The contributions of the state shall be charged to the departmental appropriation from which members' salaries are paid and shall be included in each departmental budgetary request.

Sec. 47.  Municipal employees' retirement system

                   Personal services                                        1,616,396

                   Operating expenses                                       398,293

                        Total                                                     2,014,689

               Source of funds                                                               

                   Pension trust funds                                      2,014,689

Sec. 48.  State labor relations board

                   Personal services                                           171,500

                   Operating expenses                                         38,718

                        Total                                                        210,218

               Source of funds                                                               

                   General fund                                                  204,348

                   Special funds                                                     5,870

                        Total                                                        210,218

Sec. 49.  VOSHA review board

                   Personal services                                             32,052

                   Operating expenses                                           8,330

                        Total                                                          40,382

               Source of funds                                                               

                   General fund                                                    20,192

                   Federal funds                                                  20,190

                        Total                                                          40,382

Sec. 50.  Use tax reimbursement fund - municipal current use

                   Grants                                                        8,861,267

               Source of funds                                                               

                   General fund                                               8,861,267

Sec. 50a. Tax department - municipal tax - homeowner rebate  

                   Grants                                                         6,506,140

               Source of funds                                                               

                   General fund                                                6,506,140

     (a)  The appropriation in fiscal year 2008 from the general fund for municipal homeowner rebates shall be added to the funds advanced to towns on July 1, 2007 under section 288(a) of this act.

Sec. 50b. 32 V.S.A. § 6066a(g) is added to read:

     (g)  Annually, on August 1 and on September 15, the commissioner of taxes shall pay to each municipality the amount of property tax adjustment of which the municipality was notified on July 1 for the August 1 transfer, or September 15 for the September 15 transfer, related to municipal property tax on homesteads within that municipality, as determined by the commissioner of taxes.

Sec. 51.  Lottery commission

                   Personal services                                        1,458,511

                   Operating expenses                                    1,069,761

                        Total                                                     2,528,272

               Source of funds                                                               

                   Enterprise funds                                          2,528,272

     (a)  The lottery commission shall transfer $150,000 to the department of health, office of alcohol and drug abuse programs to support the gambling addiction program. 

     (b)  The Vermont state lottery shall provide assistance and work with the Vermont council on problem gambling on systems and program development. 

Sec. 52.  Payments in lieu of taxes

                   Grants                                                        3,450,000

               Source of funds                                                               

                   General fund                                                    50,000

                   Special funds                                              3,400,000

                        Total                                                     3,450,000

     (a)  The above appropriation is for state payments in lieu of property taxes under subchapter 4 of chapter 123 of Title 32, 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.

     (b)  In the event that a local option tax is not implemented in the city of South Burlington in fiscal year 2008 the above special fund appropriation shall be reduced by $200,000. 


Sec. 53.  Payments in lieu of taxes - Montpelier

                   Grants                                                           184,000

               Source of funds                                                               

                   General fund                                                  184,000

Sec. 54.  Payments in lieu of taxes - correctional facilities

                   Grants                                                             40,000

               Source of funds                                                               

                   General fund                                                    40,000

Sec. 55.  Total general government                             149,468,172

               Source of funds                                                               

                   General fund                                             60,177,990

                   Special funds                                              7,037,017

                   Tobacco fund                                                  58,000

                   Federal funds                                             2,496,325

                   Enterprise funds                                          2,674,518

                   Internal service funds                                46,439,483

                   Pension trust funds                                    25,912,834

                   Private purpose trust funds                             997,598

                   Interdepartmental transfer                           3,674,407

                        Total                                                 149,468,172

Sec. 56.  Protection to persons and property - attorney general

                   Personal services                                        7,094,267

                   Operating expenses                                    1,069,612

                        Total                                                     8,163,879

               Source of funds                                                               

                   General fund                                               4,530,747

                   Special funds                                              1,100,000

                   Tobacco fund                                                290,000

                   Federal funds                                                763,000

                   Interdepartmental transfer                           1,480,132

                        Total                                                     8,163,879

     (a)  Notwithstanding any other provisions of law, the office of the attorney general, Medicaid fraud control unit is authorized to retain one-half of any civil monetary penalty proceeds from global Medicaid fraud settlements.  All penalty funds retained shall be used to finance Medicaid fraud and residential abuse unit activities.

     (b)  The attorney general and the secretary of administration shall report to the senate and house committees on appropriations and judiciary by January 15, 2008 on the number of attorneys employed by the state of Vermont outside the criminal justice system and the nature of each attorney position identified.  The report shall:

          (1)  identify the agency of state government for which each attorney works and provides services;

          (2)  describe for each position whether the attorney is a staff attorney employed by the agency, an assistant attorney general employed by the attorney general while providing services to the agency, a contract attorney, or an attorney of some other status;

          (3)  identify and recommend cost savings that could be realized through changing the status of some or all of the identified attorney positions to staff attorneys, assistant attorneys general, contract attorneys, or some other status.  

     (c)  Sums payable to the state of Vermont, as a consequence of settlement of a dispute with Purdue Pharma L.P. and related companies due to marketing practices shall be deposited into the Fees and Reimbursements Court Order special fund.  The secretary of administration is authorized and requested to approve excess receipts authority from the fund due to these or other receipts under 32 V.S.A. §511 with the receipts to be used as follows:

          (1)  Up to $500,000 shall be appropriated as necessary for payment of legal costs and charges arising from settlements of completed legal actions.

          (2)  Up to $1,000,000 as necessary  shall be transferred and appropriated to the department of buildings and general services which shall be used in addition to funds provided in the fiscal year 2008 capital construction bill to renovate space at the Pavilion Office Building at 109 State Street for the office of the attorney general.

Sec. 57.  Vermont court diversion

                   Grants                                                        1,604,534

               Source of funds                                                               

                   General fund                                               1,204,534

                   Special funds                                                 400,000

                        Total                                                     1,604,534

     (a)  Court diversion programs may use funds allocated in the appropriation above for increased wages and to maintain salaries and benefits.

Sec. 58.  Defender general - public defense

                   Personal services                                        6,270,658

                   Operating expenses                                       768,028

                        Total                                                     7,038,686

               Source of funds                                                               

                   General fund                                               6,681,219

                   Special funds                                                 352,467

                   Interdepartmental transfer                                  5,000

                        Total                                                     7,038,686

Sec. 59.  Defender general - assigned counsel

                   Personal services                                        2,889,376

                   Operating expenses                                         77,909

                        Total                                                     2,967,285

               Source of funds                                                               

                   General fund                                               2,692,021

                   Special funds                                                 275,264

                        Total                                                     2,967,285

Sec. 60.  Judiciary

                   Personal services                                      26,882,091

                   Operating expenses                                    8,048,252

                   Grants                                                             70,000

                        Total                                                   35,000,343

               Source of funds                                                               

                   General fund                                             30,267,034

                   Special funds                                              2,335,772

                   Tobacco fund                                                  40,000

                   Federal funds                                                414,327

                   Interdepartmental transfer                           1,943,210

                        Total                                                   34,000,343

     (a)  The judiciary shall report to the joint fiscal committee at its November 2007 meeting on the status of collections of fines and penalties.

     (b)  At the end of fiscal year 2007, any unexpended balance of the appropriation made in Sec. 70(f )(4) of No. 93 of the Acts of 2006 as amended in Sec. 272 of No. 215 of the Acts of 2006 shall be deposited into the court technology special fund established in 4 V.S.A. § 27.

Sec. 61.  4 V.S.A. § 27 is added to read:

§ 27.  Court technology special fund

     There is established the court technology special fund which shall be managed in accordance with subchapter 5 of chapter 7 of Title 32.  Administrative fees collected pursuant to 13 V.S.A. § 7252 and revenue collected pursuant to fees established pursuant to sections 1105 and 1109 of this title shall be deposited and credited to this fund.  The fund shall be available to the judicial branch to pay for contractual and operating expenses not covered by the general fund related to the following: 

          (1)  The acquisition and maintenance of software and hardware needed for case management, electronic filing, a electronic document management system, and the expense of implementation, including training.  

          (2)  The acquisition and maintenance of electronic audio and video court recording and conferencing equipment.  

          (3)  The acquisition, maintenance, and support of the judiciary’s information technology network, including training.

Sec. 62.  13 V.S.A. § 7252 is amended to read:

§ 7252.  Fines and penalties payable to state

All fines collected in prosecutions for offenses or for the breach of a penal law, forfeitures, and penalties received by the district or superior court or by the judicial bureau, except as provided in section 7251 of this title, shall belong and be paid to the state, except for a $12.50 administrative charge for each offense or violation where a fine or penalty is assessed.  The administrative charge shall be deposited in the court technology special fund established pursuant to 4 V.S.A. § 27.

Sec. 63.  State's attorneys

                   Personal services                                        9,018,830

                   Operating expenses                                    1,214,714

                        Total                                                   10,233,544

               Source of funds                                                               

                   General fund                                               7,975,299

                   Special funds                                                 151,097

                   Federal funds                                                  25,000

                   Interdepartmental transfer                            2,082,148

                        Total                                                   10,233,544

Sec. 64.  Special investigative unit

                   Grants                                                           453,000

               Source of funds                                                               

                   General fund                                                  363,000

                   Special funds                                                   90,000

                        Total                                                        453,000

Sec. 65.  Sheriffs

                   Personal services                                        2,848,849

                   Operating expenses                                       413,608

                        Total                                                     3,262,457

               Source of funds                                                               

                   General fund                                               3,262,457

     (a)  Of the above appropriation, $15,000 shall be transferred to the state's attorneys' office as reimbursement for the cost of the executive director's salary.

Sec. 66.  Public safety - administration

                   Personal services                                        1,837,909

                   Operating expenses                                       182,984

                        Total                                                     2,020,893

               Source of funds                                                               

                   General fund                                               1,945,925

                   Federal funds                                                  74,968

                        Total                                                     2,020,893

     (a)  Of the funds appropriated to the department of public safety, $26,000 shall be used to make a grant to the Essex county sheriff department.  The commissioner may transfer this amount from line items in this appropriation or other department of public safety appropriations to implement this directive.

Sec. 67.  Public safety - homeland security

                   Personal services                                        1,449,071

                   Operating expenses                                    6,730,040

                   Grants                                                        1,050,000

                        Total                                                     9,229,111

               Source of funds                                                               

                   General fund                                                  431,073

                   Federal funds                                             8,798,038

                        Total                                                     9,229,111

Sec. 68.  Public safety - state police

                   Personal services                                      38,085,058

                   Operating expenses                                    6,590,315

                   Grants                                                           975,634

                        Total                                                   45,651,007

               Source of funds                                                               

                   General fund                                               8,320,468

                   Transportation fund                                  30,385,796

                   Special funds                                              2,825,423

                   Federal funds                                             3,558,334


                   Interdepartmental transfer                              560,986

                        Total                                                   45,651,007

     (a)  Of the above appropriation, $35,000 in special funds shall be available for snowmobile law enforcement activities, and $35,000 in general funds 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.

     (b)  Of the $230,000 allocated for local heroin interdiction grants funded in this section, $190,000 shall be used by the Vermont drug task force to fund three (3) town task force officers. These town task force officers will be dedicated to heroin and heroin-related drug (e.g., methadone, oxycontin, crack cocaine, and methamphetamine) enforcement efforts.  The remaining $40,000 shall remain as a "pool" of money available to local and county law enforcement to fund overtime costs associated with heroin investigations.  Any unexpended funds from prior fiscal years shall be carried forward.

     (c)  The department of finance and management, division of budget and management, in collaboration with the joint fiscal office, shall study the overtime expenditures of the department of public safety.  Specifically, the study shall focus on the method for allocating overtime, the determination of which staff members receive overtime, the method used to project overtime needs for budgetary purposes, the contractual issues surrounding the usage of overtime, the history of overtime expenditures, and a cost benefit analysis of continuing with the current practice of utilizing overtime versus the establishment of a third shift within each of the barracks within the department of public safety.  The secretary of administration and the department of public safety shall provide any cooperation and assistance that may be required.  The report shall be submitted to the house and senate committees on appropriations by December 15, 2007.

     (d)  From the funds appropriated to the department of public safety in this act, the secretary of administration in consultation with the department of public safety shall develop three pilot projects utilizing sheriffs, constables and municipal police officers to answer complaints and undertake follow-up investigations in areas of the state served by the Vermont state police that have consistently generated overtime over the past three years.  These pilot projects shall commence no later than September 1, 2007 and may run for up to three years.  The secretary and the commissioner of the department of public safety shall report on the status of these pilot projects during the department’s annual budget presentation to the house and senate committees on appropriations in 2008, 2009 and 2010. 

Sec. 69.  Public safety - criminal justice services

                   Personal services                                        5,942,894

                   Operating expenses                                    3,199,016

                   Grants                                                        3,256,900

                        Total                                                   12,398,810

               Source of funds                                                               

                   General fund                                                  760,000

                   Transportation fund                                    4,429,971

                   Special funds                                              1,433,512

                   Federal funds                                             5,151,813

                   Interdepartmental transfer                              623,514

                        Total                                                   12,398,810

Sec. 70.  Public safety - emergency management

                   Personal services                                        1,629,045

                   Operating expenses                                       627,812

                    Grants                                                           819,400

                        Total                                                     3,076,257

               Source of funds                                                               

                   Transportation fund                                         63,969

                   Special funds                                                 123,664

                   Federal funds                                             2,888,624

                        Total                                                     3,076,257

Sec. 71.  Public safety - emergency management - radiological emergency response plan

                   Personal services                                           768,470

                   Operating expenses                                       221,980

                   Grants                                                           705,985

                        Total                                                     1,696,435

               Source of funds                                                               

                   Special funds                                              1,696,435

     (a)  Of the above special fund appropriation, up to $30,000 shall be available to contract with any radio station serving the emergency planning zone for the emergency alert system.

     (b)  Of the above appropriation, $354,245 is to be transferred to the Vermont department of health.

Sec. 72.  Public safety - fire safety

                   Personal services                                        4,194,040

                   Operating expenses                                    1,411,643

                   Grants                                                             50,000

                        Total                                                     5,655,683

               Source of funds                                                               

                   General fund                                                  713,652

                   Special funds                                              4,343,105

                   Federal funds                                                395,279

                   Interdepartmental transfer                              203,647

                        Total                                                     5,655,683

     (a)  Of the above general fund appropriation, $50,000 shall be granted to the Vermont rural fire protection task force for the purpose of designing dry hydrants.

Sec. 73.  Military - administration

                   Personal services                                           532,542

                   Operating expenses                                       162,838

                   Grants                                                           200,000

                        Total                                                        895,380

               Source of funds                                                               

                   General fund                                                  895,380

     (a)  Of the above appropriation, an amount not to exceed $200,000 shall be disbursed to the Vermont student assistance corporation to replenish the amount available for the national guard scholarship program established in 16 V.S.A. § 2856 to a level of $200,000.  At the end of fiscal year 2008, any part of the $200,000 appropriation not transferred to the Vermont student assistance corporation shall revert to the general fund.

     (b)  Total disbursements by the Vermont student assistance corporation under 16 V.S.A. § 2856 shall not exceed $200,000 in fiscal year 2008.

Sec. 74.  Military - air service contract

                   Personal services                                        4,153,098

                   Operating expenses                                       980,889

                        Total                                                     5,133,987

               Source of funds                                                               

                   General fund                                                  399,579

                   Federal funds                                             4,734,408

                        Total                                                     5,133,987

Sec. 75.  Military - army service contract

                   Personal services                                        3,300,460

                   Operating expenses                                    5,780,134

                        Total                                                     9,080,594

               Source of funds                                                               

                   General fund                                                  107,064

                   Federal funds                                             8,973,530

                        Total                                                     9,080,594

Sec. 76.  Military - building maintenance

                   Personal services                                           975,531

                   Operating expenses                                       441,925

                        Total                                                     1,417,456

               Source of funds                                                               

                   General fund                                               1,417,456

Sec. 77.  Military - veterans' affairs

                   Personal services                                           356,622

                   Operating expenses                                         93,112

                   Grants                                                           177,815

                        Total                                                        627,549

               Source of funds                                                               

                   General fund                                                  569,430

                   Federal funds                                                  58,119

                        Total                                                        627,549

     (a)  Of the above appropriation, $15,000 shall be used for continuation of the Vermont medal program, $15,000 shall be used for the expenses of the governor's veterans' advisory council, $15,000 shall be used for the Veterans' Day parade, and $5,000 shall be granted to the Vermont state council of the Vietnam Veterans of America to fund the service officer program. 

Sec. 78.  Center for crime victims services

                   Personal services                                        1,186,878

                   Operating expenses                                       303,478

                   Grants                                                        9,258,234

                        Total                                                   10,748,590

               Source of funds                                                               

                   General fund                                               1,125,020

                   Special funds                                              5,602,450

                   Federal funds                                             4,021,120

                        Total                                                   10,748,590

Sec. 78a.  MEMORIAL GARDEN; LOAN

     (a)  The executive director of the center for crime victim services may lend up to $100,000, without interest, from the crime victims’ restitution special fund, created pursuant to 13 V.S.A. Sec. 5363, to the memorial garden special account which can be used to provide funding to the department of buildings and general services for the purpose of constructing the courage-in-bloom memorial garden at the designated site between 10-12 Baldwin street.  The center for crime victim services shall repay the loan in annual installments made over a period not to exceed five years.  The repayment of the loan is anticipated to come from fund-raising by the center for crime victim services and the domestic violence network.  The center shall report annually to the state treasurer on the payments and receivables related to the loan.

Sec. 78b.  RESTITUTION CLAIMS; ONE-TIME APPROPRIATION

     (a)  The sum of $200,000 is appropriated on a one-time basis from the crime victims’ restitution special fund to the center for crime victims services, to provide for payment of restitution claims prior to 2004.

Sec. 79.  Criminal justice training council

                   Personal services                                        1,032,090

                   Operating expenses                                       991,816

                        Total                                                     2,023,906

               Source of funds                                                               

                   General fund                                               1,385,881

                   Special funds                                                 510,393

                   Interdepartmental transfer                              127,632

                        Total                                                     2,023,906

Sec. 80.  Agriculture, food and markets - administration

                   Personal services                                           907,195

                   Operating expenses                                       816,806

                   Grants                                                           353,081

                        Total                                                     2,077,082

               Source of funds                                                               

                   General fund                                               1,297,384

                   Special funds                                                 611,632

                   Federal funds                                                125,386

                   Interdepartmental transfer                                42,680

                        Total                                                     2,077,082

Sec. 81.  Agriculture, food and markets - food safety and consumer protection

                   Personal services                                        2,620,156

                   Operating expenses                                       495,573

                   Grants                                                        2,600,000

                        Total                                                     5,715,729

               Source of funds                                                               

                   General fund                                               1,732,864

                   Special funds                                              3,411,959

                   Federal funds                                                563,906

                   Interdepartmental transfer                                  7,000

                        Total                                                     5,715,729

Sec. 82.  Agriculture, food and markets - agricultural development

                   Personal services                                           752,331

                   Operating expenses                                       482,385

                   Grants                                                        1,877,500

                        Total                                                     3,112,216

               Source of funds                                                               

                   General fund                                                  743,958

                   Special funds                                              1,759,258

                   Federal funds                                                209,000

                   Interdepartmental transfer                               400,000

                        Total                                                     3,112,216

     (a)  Of the above special fund appropriation, $80,000 shall be used to support the mobile slaughter house.

     (b)  Of the above appropriation, $85,000 shall be used to support the farm-to-school program.

     (c)  Of the above appropriation, $40,000 shall be provided to the Food Education Every Day Program to enable the organization to provide farm to school education and teacher training services to more school districts and to assist the secretary of agriculture, food and markets and the commissioner of education to carry out farmer and food service worker training pursuant to Secs. 3(a) and 4 of No. 145 of the Acts of the 2006.

Sec. 83.  Agriculture, food and markets - laboratories, agricultural resource management and environmental stewardship

                   Personal services                                        2,779,046

                   Operating expenses                                       566,529

                   Grants                                                        1,195,000

                        Total                                                     4,540,575

               Source of funds                                                               

                   General fund                                               1,890,910

                   Special funds                                              1,760,226

                   Federal funds                                                627,389

                   Interdepartmental transfer                              262,050

                        Total                                                     4,540,575

     (a)  Of the above appropriation, $145,000 shall be used for a grant to the Farmers Watershed Alliance.

Sec. 84.  Agriculture, food and markets - state stipend

                   Grants                                                           175,000

               Source of funds                                                               

                   General fund                                                  175,000

Sec. 85.  Agriculture, food and markets - mosquito control

                   Personal services                                             20,000

                   Operating expenses                                       184,750

                        Total                                                        204,750

               Source of funds                                                               

                   Special funds                                                 204,750

     (a)  Any general fund appropriation in this section remaining at the end of fiscal year 2008 shall carry forward to fiscal year 2009.

Sec. 86.  Banking, insurance, securities, and health care administration - banking

                   Personal services                                        1,241,297

                   Operating expenses                                       280,294

                        Total                                                     1,521,591

               Source of funds                                                               

                   Special funds                                              1,521,591

Sec. 87.  9 V.S.A. § 5613(e) is added to read:

     (e)  In any fiscal year in which revenues deposited in the banking supervision fund established by subsection 19(f) of Title 8 are insufficient to support the annual appropriation to the banking division, the commissioner may transfer no more than a sum necessary to meet the shortfall from the fund established by this section to the banking supervision fund.

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

                   Personal services                                        2,988,436

                   Operating expenses                                       535,850

                        Total                                                     3,524,286

               Source of funds                                                               

                   Special funds                                              3,524,286


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

                   Personal services                                        3,032,154

                   Operating expenses                                       502,100

                        Total                                                     3,534,254

               Source of funds                                                               

                   Special funds                                              3,534,254

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

                   Personal services                                           602,058

                   Operating expenses                                       136,750

                        Total                                                        738,808

               Source of funds                                                               

                   Special funds                                                 738,808

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

                   Personal services                                        5,640,439

                   Operating expenses                                       389,314

                        Total                                                     6,029,753

               Source of funds                                                               

                   General fund                                                  711,000

                   Special funds                                              2,738,756

                   Global commitment fund                             1,509,997

                   Federal funds                                             1,000,000

                   Interdepartmental transfer                                70,000

                        Total                                                     6,029,753

     (a)  Of the above appropriation, $726,664, consisting of $395,000 in general funds, $105,000 in Global Commitment funds, and $226,664 in special funds, is for a continuation of the project conducted by the Vermont information technology leaders (VITL), as referred to in Sec. 263(e)(3) of No. 71 of the Acts of 2005, as amended by Sec. 74 of No. 93 of the Acts of 2006.  Availability of the $726,664 funds is contingent on the secretary of administration's approval of an annual plan submitted by VITL to coordinate VITL's activities with "the Vermont blueprint for health chronic care initiative" and other health care- related statewide information technology projects.  Availability of the $726,664 shall also be contingent on the delivery by VITL of an update on a sustainable business plan to the secretary of administration and the general assembly; and a commitment by VITL to use "best efforts" to secure a nonstate match for the funds.  If at any time VITL no longer demonstrates the ability to deliver the work described in 18 V.S.A. § 9417, the state shall have the right to assume ownership of all licenses, intellectual property, and work product of VITL developed for the state pursuant to section 9417 or otherwise.  The $726,664 in this section shall not be available until the funding in Sec. 87(a) of No. 215 of the Acts of 2006 and in Sec. 263(e)(3) of No. 71 of the Acts of 2005, as amended by Sec. 74 of No. 93 of the Acts of 2006, has been fully expended.

Sec. 91a.  NONGROUP MARKET SECURITY TRUST

     (a)  Notwithstanding 8 V.S.A. § 4062d(b), the commissioner of banking, insurance, securities, and health care administration may request proposals on how to operate the trust in a manner consistent with the purpose of 8  V.S.A. § 4062d.  The commissioner may establish the nongroup market security trust using a reinsurance model or other mechanism consistent with the grant provided to the department of banking, insurance, securities and health care administration from the Centers on Medicare and Medicaid Services (CMS).

     (b)  No later than December 1, 2007, the commissioner shall report to the house committee on health care and the senate committee on health and welfare with suggested statutory changes to modify 8  V.S.A. § 4062d to conform to the proposed operation of the program.

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

                   Personal services                                        1,099,435

                   Operating expenses                                         43,195

                        Total                                                     1,142,630

               Source of funds                                                               

                   Special funds                                              1,142,630

     (a)  The commissioner may transfer from the appropriation established for each division of the department of banking, insurance, securities, and health care administration to the appropriation in this section, sums corresponding to the salary and associated personnel costs of legal counsel who are transferred to the division of administration.

Sec. 93.  Secretary of state

                   Personal services                                        4,407,205

                   Operating expenses                                    1,229,060

                   Grants                                                        1,000,000

                        Total                                                     6,636,265

               Source of funds                                                               

                   General fund                                                  588,801

                   Special funds                                              3,972,462

                   Federal funds                                             2,000,000

                   Interdepartmental transfer                                75,002

                        Total                                                     6,636,265

     (a)  The corporation division of the secretary of state's office represents $492,991 of the above special fund appropriation, and these funds shall be from the securities regulation and supervision fund in accordance with 9 V.S.A. § 5613.

     (b)  In fiscal year 2008 $120,000 from the Vermont campaign finance fund shall be deposited into the general fund.

Sec. 94.  Public service - regulation and energy

                   Personal services                                        4,873,384

                   Operating expenses                                       687,463

                   Grants                                                        5,870,007

                        Total                                                   11,430,854

               Source of funds                                                               

                   Special funds                                             10,238,054

                   Federal funds                                             1,157,800

                   Interdepartmental transfer                                35,000

                        Total                                                   11,430,854

Sec. 95.  Public service - purchase and sale of power

                   Personal services                                             11,886

                   Operating expenses                                           1,516

                        Total                                                          13,402

               Source of funds                                                               

                   Special funds                                                   13,402

Sec. 96.  Public service board

                   Personal services                                        2,526,024

                   Operating expenses                                       300,000

                        Total                                                     2,826,024

               Source of funds                                                               

                   Special funds                                              2,826,024

Sec. 97.  Enhanced 9-1-1 Board

                   Personal services                                        2,003,841

                   Operating expenses                                    1,352,769

                        Total                                                     3,356,610

               Source of funds                                                               

                   Special funds                                              3,356,610

Sec. 98.  Vermont racing commission

                   Operating expenses                                            1,000

               Source of funds                                                               

                   General fund                                                       1,000

Sec. 99.  Human rights commission

                   Personal services                                           401,895

                   Operating expenses                                          95,694

                        Total                                                        497,589

               Source of funds                                                               

                   General fund                                                  326,850

                   Federal funds                                                170,739

                        Total                                                        497,589

Sec. 100.  Liquor control - enforcement and licensing

                   Personal services                                        1,677,769

                   Operating expenses                                       389,890

                        Total                                                     2,067,659

               Source of funds                                                               

                   Tobacco fund                                                289,645

                   Enterprise funds                                          1,778,014

                        Total                                                     2,067,659

Sec. 101.  Liquor control - administration

                   Personal services                                        1,329,017

                   Operating expenses                                       407,719

                        Total                                                     1,736,736

               Source of funds                                                               

                   Enterprise funds                                          1,736,736

Sec. 102.  Liquor control - warehousing and distribution

                   Personal services                                           757,159

                   Operating expenses                                       415,443

                        Total                                                     1,172,602

               Source of funds                                                               

                   Enterprise funds                                          1,172,602

Sec. 103.  Total protection to persons and

property                                                                    240,634,801

               Source of funds                                                               

                   General fund                                             82,515,006

                   Transportation fund                                  34,879,736

                   Special funds                                            62,794,284

                   Tobacco fund                                                619,645

                   Global commitment fund                             1,509,997

                   Federal funds                                           45,710,780

                   Enterprise funds                                          4,687,352

                   Interdepartmental transfer                           7,918,001

                        Total                                                 240,634,801

Sec. 104.  Human services - agency of human services - secretary's office

                   Personal services                                        6,890,677

                   Operating expenses                                    2,676,686

                   Grants                                                        4,487,973

                        Total                                                   14,055,336

               Source of funds                                                               

                   General fund                                               3,940,516

                   Special funds                                                     7,517

                   Tobacco funds                                              612,021

                    Federal funds                                             4,954,088

                   Interdepartmental transfer                           4,541,194

                        Total                                                   14,055,336

     (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 to the departments in the agency of human services designated to provide these services.

     (d)  Of the above tobacco settlement funds, $54,000 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.

     (e)  Of the above tobacco fund appropriation, $143,000 shall be used for a grant to Lamoille County people in partnership for wrap-around services for at-risk youth.

     (f)  Of the above tobacco fund appropriation, $100,000 with any corresponding federal matching funds shall be for comprehensive treatment services and $15,000 shall be for housing provisions for at-risk youth.

     (g)  Of the above tobacco fund appropriation, $200,000 along with available matching federal funds shall be available for services required for petitions filed by the agency under 33 V.S.A. § 5517(e).

Sec. 104a.  COMMUNITY BASED ALTERNATIVES FOR CRIMINAL JUSTICE SERVICES

     (a) There are a variety of community based programs that are alternatives to traditional criminal justices and correction services, these include court diversion, restorative probation and street checker programs and community  justice centers.  The secretary of human services and the attorney general shall identify the various programs that provide these services and shall issue a report to the general assembly by December 15, 2007.  The report shall include but not be limited to:

          (1)  A listing and a description of the various programs, annual caseload and available information on cases by county, offenses, age, gender, and case outcomes;

          (2)  The amount and sources of funding for these programs, this shall include local, state and federal funding support available to these programs;

          (3)  The relationship of these programs to other human service and criminal justice entities;

          (4)  Recommendations as to continuation, expansion, elimination or consolidation of these programs or other changes that will result in more efficient and effective use of available resources;

          (5)  Information about models, practices or programs of alternative justice from other states or localities.

Sec. 105.  Secretary's office - global commitment

                   Grants                                                    871,010,448

               Source of funds                                                               

                   General fund                                           119,617,229

                   Special fund                                             15,270,557

                   Tobacco Fund                                          29,609,240

                   State health care resources fund              157,167,075

                   Catamount fund                                          7,168,430

                   Federal funds                                         539,898,714

                   Interdepartmental transfer                           2,279,203

                        Total                                                 871,010,448

     (a)  The agency of human services shall use the funds appropriated in this section for payment of the actuarially certified premium required under the intergovernmental agreement between the agency of human services and the managed care organization in the office of Vermont health access as provided for in the Global Commitment to health waiver (“Global Commitment”) approved by the Centers for Medicare and Medicaid Services under Section 1115 of the Social Security Act.

     (b)  In addition to the state funds appropriated in this section, a total estimated sum of $34,539,006 is anticipated to be certified as state matching funds under the Global Commitment as follows:

          (1)  $17,283,434 certified state match available from local education agencies.  This amount combined with $24,881,566 of federal funds appropriated in this section equals a total estimated expenditure of $42,165,000 for eligible special education school-based Medicaid services under the Global Commitment.  An amount equal to the amount of the federal matching funds for eligible special education school-based Medicaid services under Global Commitment shall be transferred from the Global Commitment fund to the Medicaid reimbursement special fund created in 16 V.S.A. § 2959a.

          (2)  $8,956,247 certified state match available from local education agencies for eligible services under the Global Commitment provided to students through school-based health services, including school nurses.

          (3)  $4,215,210 certified state match available from local education agencies for eligible services provided to students in the success beyond six programs.

          (4)  $1,859,703 certified state match available from local designated mental health agencies for eligible mental health services provided under the Global Commitment.

          (5)  $2,176,726 certified state match available from local designated developmental services agencies for eligible developmental services provided under the Global Commitment.

          (6)  It is estimated that at least $10,273,557 of state funds will be carried forward from fiscal year 2007 to fund the Global Commitment managed care premium and global commitment administration costs in fiscal year 2008.  

Sec. 106.  CATAMOUNT HEALTH ASSISTANCE; GLOBAL COMMITMENT WAIVER

     (a)  If the Centers on Medicaid and Medicare Services (CMS) has not responded to the Global Commitment for Health waiver amendment request to fund Catamount Health Assistance with Medicaid funds, does not approve the request, or approves a lower income eligibility limit for Catamount Health Assistance by July 31, 2007, the commission on health care reform created pursuant to 2 V.S.A. § 901 shall consider whether to recommend to the emergency board:

          (1)  to proceed with the implementation of Catamount Health established under 4080f of Title 8, Catamount Health Assistance under subchapter 3a of chapter 19 of Title 33, employer-sponsored insurance program under section 1974 of Title 33, or a combination of the programs;

          (2)  to delay the implementation of some or all of the programs; or

          (3)  to exercise the option to suspend new enrollment or restrict enrollment to eligible lower income individuals under section 1974(e) or 1983(d) of Title 33.

     (b)  After receiving a recommendation by the health care commission, the emergency board shall consider the commission’s recommendation and shall make a determination no later than August 30, 2007 on whether to proceed with implementation, delay implementation, or exercise its authority under section 1974(e) or 1983(d) of Title 33. 

Sec. 107.  Rate setting

                   Personal services                                           739,407

                   Operating expenses                                         69,762

                        Total                                                        809,169

               Source of funds                                                               

                   Interdepartmental transfer                              809,169

Sec. 108.  Developmental disabilities council

                   Personal services                                           152,876

                   Operating expenses                                         40,817

                   Grants                                                           299,558

                        Total                                                        493,251

               Source of funds                                                               

                   Federal funds                                                493,251

Sec. 109.  Human services board

                   Personal services                                           287,458

                   Operating expenses                                         54,622

                        Total                                                        342,080

               Source of funds                                                               

                   General fund                                                    50,063

                   Federal funds                                                  11,993

                   Interdepartmental transfer                              280,024

                        Total                                                        342,080

Sec. 110.  Office of Vermont health access - administration

                   Personal services                                      28,851,926

                   Operating expenses                                    1,561,980

                   Grants                                                         1,000,000

                        Total                                                   31,413,906

               Source of funds                                                               

                   General fund                                                    50,000

                   Global Commitment fund                          30,301,112

                   Federal funds                                                700,000

                   Interdepartmental transfer                              362,794

                        Total                                                   31,413,906

Sec. 110a.  33 V.S.A. § 1904(5) is amended to read:

(5)  “Insurer” means any insurance company, prepaid health care delivery plan, self‑funded employee benefit plan, pension fund, hospital or medical service corporation, managed care organization, pharmacy benefit manager, retirement system, or similar entity that is under an obligation to make payments for medical services as a result of an injury, illness or disease suffered by an individual.

Sec. 110b.  33 V.S.A. § 1907 is amended to read:

§ 1907.  SUBROGATION

To the extent that payment for covered expenses has been made under the state Medicaid program or through any state agency administering health benefits or a health benefit plan for which Medicaid is a source of funding for health care items or services furnished to an individual, in any case where a third party has a legal liability to make payments, the state is considered to have acquired the rights of the individual to payment by any other party for those health care items or services.  An insurer shall accept the agency’s right to recovery and the assignment to the agency of any right of a person to payment from the third party for medical services for which the agency has made payment under this chapter.

Sec. 110c.  33 V.S.A. § 1908 is amended to read:

§ 1908.  MEDICAID; PAYER OF LAST RESORT; RELEASE OF   INFORMATION

(a)  Any clause in an insurance contract, plan or agreement which limits or excludes payments to a recipient is void.

(b)  Medicaid shall be the payer of last resort to any insurer which contracts to pay health care costs for a recipient.

(c)  Every applicant for or recipient of Medicaid under this subchapter is deemed to have authorized all third parties to release to the agency all information needed by the agency to secure or enforce its rights under this subchapter.  The agency shall inform an applicant or recipient of the provisions of this subsection at the time of application for Medicaid benefits.

(d)  At the agency’s request, an insurer shall provide the agency with the information necessary to determine whether an applicant or recipient of Medicaid under this subchapter is or was covered by the insurer and the nature of the coverage, including the member, subscriber, or policyholder information necessary to determine third party liability and other information required under subsection 9410(h) of Title 18.  The agency may require the insurer to provide the information electronically.

(e)  From funds recovered pursuant to this subchapter, the federal government shall be paid a portion equal to the proportionate share originally provided by the federal government to pay for medical assistance to a recipient or minor.

Sec. 110d.  33 V.S.A. § 1909 is amended to read:

§ 1909.  DIRECT PAYMENTS TO AGENCY; DISCHARGE OF  INSURER’S OBLIGATION

(a)  When a recipient who is covered by the recipient’s or a legally liable representative’s insurer receives medical benefits under this subchapter, payment for covered services or notice of denial shall be issued directly to the provider.

(b)  A provider shall indicate on any claim form submitted to an insurer for covered services whether or not the person receiving treatment is a recipient.

(c)(1)  An insurer which receives notice that the agency has made payments to the provider shall pay benefits or send notice of denial directly to the agency.  Receipt of an agency claim form by an insurer constitutes notice that payment of the claim was made by the agency to the provider and that form supersedes any contract requirements of the insurer relating to the form of submission.

(2)  An insurer shall respond to any request made by the agency regarding a claim for payment for any health care item or service that is submitted not later than three years after the date of the provision of such health care item or service.

(3)  An insurer shall not deny a claim submitted by the agency solely on the basis of the date of submission of the claim, the type or format of the claim form, or a failure to present proper documentation at the point‑of‑sale that is the basis of the claim, if the claim is submitted by the agency within the three‑year period beginning on the date on which the item or service was furnished; and any action by the agency to enforce its rights with respect to a claim is commenced within six years of the agency’s submission of the claim.

(d)  An insurer which has been notified of a claim by the agency under this section and proceeds to pay the claim to a person other than the agency is not discharged from payment of the agency’s claim.

(e)  Payment to the agency by an insurer under this section discharges the insurer’s obligation for further payment on the claim to the extent of the amount paid.

Sec. 110e.  8 V.S.A. § 4062e is added to read:

§ 4062e.  COMPLIANCE WITH MEDICAID RECOVERY PROVISIONS

A health insurer as defined in section 1904 of Title 33, that issues, sells, renews, or offers health insurance coverage in Vermont or who is required to be licensed or registered with the department shall comply with the requirements of sections 1907, 1908, 1909, and 1910 of Title 33.  The commissioner shall enforce such requirements pursuant to his or her authority under this title.

Sec. 111.  Office of Vermont health access - Medicaid program - Global Commitment

                   Grants                                                    442,280,091

               Source of funds                                                               

                   Global commitment fund                         442,280,091

     (a)  In fiscal year 2008 the office of Vermont health access shall increase the supplemental dental payment program by at least $50,000 over the level budgeted for fiscal year 2007.

Sec. 111a.  CHIROPRACTIC COVERAGE UNDER MEDICAID AND VHAP

     (a)  The agency of human services is directed to reinstate chiropractic coverage for adults in the Medicaid and VHAP programs effective September 1, 2007, consistent with section 4088a of Title 8 and at rates comparable to payments for care or services by other health care providers.

Sec. 112.  Office of Vermont health access - Medicaid program - Long-term care waiver

                   Grants                                                    187,942,080

               Source of funds                                                               

                    General fund                                             77,037,474

                   Federal funds                                         110,904,606

                        Total                                                 187,942,080

Sec. 112a.  Sec. 1 of No. 56 of the Acts of 2005 is amended to read:

Sec. 1.  LONG-TERM CARE MEDICAID 1115 WAIVER; CHOICES FOR CARE

* * *

(b)(1)  Outside the legislative session, the health access oversight committee shall have oversight for the development, implementation, and ongoing operation of any long-term care Medicaid waivers applied for and received by the agency of human services. 

(2)(A)  The secretary of human services shall report to the committee upon its request and annually to the general assembly by January 15.

(B)  The department shall submit quarterly reports to the general assembly or the health access oversight committee about the utilization of services and expenses under Choices for Care.  The reports shall also include a comparison of actual expenditures to estimated expenditures and projected expenditures for the remainder of the fiscal year.

* * *

(g)(1)  Any savings realized due to the implementation of the long-term care Medicaid 1115 waiver shall be retained by the department and reinvested into providing home- and community‑based services under the waiver.  If at any time the agency reapplies for a Medicaid waiver to provide these services, it shall include a provision in the waiver that any savings shall be reinvested.

(2)  In its annual budget presentation, the department of disabilities, aging, and independent living shall include the amount of savings generated from individuals receiving home- and community-based care services instead of services in a nursing home through the Choices for Care waiver and a plan with details on the recommended use of the appropriation.  The plan shall include the base appropriation; the method for determining savings; how the savings will be reinvested in home- and community-based services, including the allocation between increases in caseloads and increases in provider reimbursements; and a breakdown of how many individuals are receiving services by type of service.

(h) Any funds appropriated for long-term care under the long-term care waiver authorized under this act shall be used for long-term care services to recipients. In using these funds, the department shall give priority to services to individuals assessed as high and highest needs and meeting the terms and conditions of the waiver as approved by the Centers for Medicare and Medicaid Services. Any remaining funds from the long-term care appropriation may be used for other long-term care services as defined in subsection (i) of this section.  The remaining funds shall be allocated and spent in ways that are sustainable into the future and do not create an unsustainable base budget.  Any funds that are not spent in the year for which they were appropriated shall be carried over to the next fiscal year.

(h)(i)  “Long-term care” means care or services received by an individual in a nursing home, or through home- and community‑based services designed to assist older Vermonters and people with disabilities to remain independent and avoid inappropriate institutionalization.  “Home- and community‑based services” include:

* * *

Sec. 113.  Office of Vermont health access - Medicaid non-waiver matched

                   Grants                                                      58,390,811

               Source of funds                                                               

                   General funds                                           21,845,389

                   Federal funds                                           36,545,422

                        Total                                                   58,390,811

Sec. 114.  Office of Vermont health access - Medicaid program - state only

                   Grants                                                      29,124,517

               Source of funds                                                               

                   General funds                                           28,869,330

                   Global Commitment fund                               255,187

                         Total                                                   29,124,517

Sec. 115.  Health - administration and support

                   Personal services                                        5,623,417

                   Operating expenses                                    2,268,996

                   Grants                                                             50,000

                        Total                                                     7,942,413

               Source of funds                                                               

                   Special funds                                                   24,525

                   Global Commitment fund                            1,812,709

                   Federal funds                                             6,101,179

                   Interdepartmental transfer                                  4,000

                        Total                                                     7,942,413

Sec. 116.  32 V.S.A. § 1003(e) is added to read:

     (e)  Notwithstanding the maximum salary established in subsection (b) of this section, the maximum salary for the commissioner of health may not exceed $150,000.00. 

Sec. 117.  Health - Blueprint for Health

                   Personal services                                        2,851,522

                   Operating expenses                                       385,783

                   Grants                                                        1,570,403

                        Total                                                     4,807,708

               Source of funds                                                               

                   Global Commitment fund                            2,933,398

                   Catamount fund                                          1,846,713

                   Federal funds                                                  27,597

                        Total                                                     4,807,708

     (a)  From the funds appropriated in this section, the department of health shall provide incentive grants and stipends to physician practices participating in the pilot projects developed under the Vermont blueprint for health established in section 702 of Title 18. 

Sec. 118.  Health - health protection

                   Personal services                                        3,974,089

                   Operating expenses                                       757,012

                   Grants                                                        1,789,500

                        Total                                                     6,520,601

               Source of funds                                                               

                   General fund                                                  445,730

                   Special funds                                              1,313,121

                   Global commitment fund                                147,502

                   Federal funds                                             4,210,313

                   Interdepartmental transfer                              403,935

                        Total                                                     6,520,601


Sec. 119.  Health - health surveillance

                   Personal services                                        9,710,579

                   Operating expenses                                    2,471,432

                   Grants                                                        2,524,499

                        Total                                                   14,706,510

               Source of funds                                                               

                   General fund                                               1,901,636

                   Special funds                                              1,307,500

                   Global Commitment fund                            2,498,893

                   Federal funds                                             8,923,937

                   Permanent trust funds                                      10,000

                   Interdepartmental transfer                                64,544

                        Total                                                   14,706,510

     (a)  The amount of $335,000 of the above general fund/Global Commitment fund appropriation shall be appropriated to the following Vermont AIDS service organizations and peer-support organizations for client-based support services.  It is the intent of the general assembly that if Global Commitment fund monies in this subsection are unavailable, the total funding for Vermont AIDS service organizations and peer-support organizations for client-based support services shall be maintained through the general fund or other state-funding sources.  The department of health AIDS program shall meet at least quarterly with the community advisory group (CAG) with current information and data relating to service initiatives.  The funds shall be allocated as follows: 

          (1)  AIDS Project of Southern Vermont - $63,529

          (2)  ACORN - $25,225

          (3)  IMANI - $40,173

          (4)  VT CARES - $141,073

          (5)  Twin States Network - $30,000

          (6)  People with AIDS Coalition - $35,000

     (b)  Of the above federal funds, Ryan White Title II funds for AIDS services and the AIDS Medication Assistance Program shall be distributed in accordance with federal guidelines.  These guidelines shall not apply to programming funded by state general funds.

     (c)  The amount of $140,000 of the above general fund appropriation shall be used for assistance to individuals in the HIV/AIDS medication assistance program (AMAP), including the costs of prescribed medications, related laboratory testing, and nutritional supplements.  These funds may not be used for any administrative purposes by the department of health or by any other state agency or department.  Any remaining AMAP general funds at the end of the fiscal year shall be distributed to Vermont AIDS service organizations in the same proportions as those outlined under subsection (a) of this section. 

     (d)  The amount of $100,000 of the above general fund appropriation shall be appropriated to the Vermont AIDS service organizations and other Vermont HIV/AIDS prevention providers for community-based HIV prevention programming which is currently not supported by federal funds due to federal restrictions.  These funds shall be used for HIV/AIDS prevention purposes, including, but not limited to, improving the availability of confidential and anonymous HIV testing; prevention work with at-risk groups such as women, intravenous drug users, and people of color; anti-stigma campaigns; and promotion of needle exchange programs.  No more than 15 percent of the funds may be used for the administration of such services by the recipients of these funds.  The method by which these prevention funds shall be distributed shall be determined by mutual agreement of the department of health, AIDS service organizations, and CAG.  The department of health AIDS program shall be guided and advised by CAG on an ongoing basis in prioritizing prevention service needs in the disbursement of these funds.

     (e)  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 general assembly can take action. 

     (f)  The secretary of human services shall work in conjunction with the AMAP advisory committee, which shall be comprised of 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. 120.  Health - health improvement

                   Personal services                                        8,051,727

                   Operating expenses                                    1,038,409

                   Grants                                                      11,581,405

                        Total                                                   20,671,541

               Source of funds                                                               

                   General fund                                               1,432,640

                   Special funds                                                 729,800

                   Tobacco funds                                           2,780,225

                   Global Commitment fund                            7,470,718

                   Federal funds                                             8,251,158

                   Interdepartmental transfer                                  7,000

                        Total                                                   20,671,541

     (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 deposited into the loan repayment fund established under 18 V.S.A. § 10a or for the Vermont student assistance corporation for loan forgiveness programs for health care providers through the dental hygienist incentive loan program and the nursing incentive loan program.

     (b)  The above tobacco fund appropriation and $1,059,409 in Global Commitment funds 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;  

          (2)  media and public education - $1,007,799;  

          (3)  tobacco cessation programs - $1,400,211; these funds may also be used to provide tobacco cessation counseling services to persons incarcerated in Vermont correctional facilities, and $80,000 shall be used to make nicotine replacement therapies available to all persons enrolled in tobacco cessation counseling; and $15,000 shall be granted to Washington County Mental Health Agency, Inc. for a special cessation program;

          (4)  surveillance and evaluation activities - $333,000;

          (5)  statewide provider education - $75,000.  

     (c)  Of the above general fund/Global Commitment appropriation, $450,000 shall be granted to the area health education center (AHEC) to support the work and infrastructure of the statewide AHEC network to ensure an adequate and appropriate health care workforce, to bring quality improvement programs to health care professionals, and to create partnerships across community-based health care services to improve health care access and integration. 

     (d)  Any funds not expended by the AHEC during fiscal years 2006, 2007, and 2008 shall be carried forward to be available for use in subsequent fiscal years.  The AHEC will provide the department of health with a final progress report and financial report detailing the unexpended funds to be carried forward at the close of each fiscal year. 

     (e)  Of the above appropriation, $160,000 is for development and implementation of a patient safety surveillance and improvement system established pursuant to 18 V.S.A. § 1913.  In addition, the department of health, with assistance from the department of banking, insurance, securities, and health care administration, shall collect and utilize for such purposes the sum of $40,000 to be contributed from hospitals licensed in Vermont.

     (f)  Of the above Global Commitment fund appropriation, $880,000 shall be deposited into the Vermont educational loan repayment fund and used for the purposes of loan repayment for health care providers and health care educators pursuant to 18 V.S.A. § 10a.

     (g)  Of the above appropriation, $80,000 is allocated for the Vermont student assistance corporation for loan forgiveness programs for health care providers through the dental hygienist incentive loan program and nursing incentive loan program. 

     (h)  Of the above appropriation, $1,090,000, which includes $500,000 of federal substance abuse grant funds, is for the coordinated healthy activity, motivation, and prevention programs to be used for community wellness grants awarded pursuant to 18 V.S.A. § 104b. 

     (i)  In the event payment of strategic tobacco payments made to the state under the master tobacco settlement exceed $13,000,000 in fiscal year 2008, then up to $500,000 shall be appropriated from the tobacco litigation settlement fund to the department of health.  These shall be in addition to the funds appropriated above.  If available this appropriation shall be used for tobacco cessation programs as directed by the Vermont tobacco control board.

     (j)  Of the above Global Commitment funds, $440,000 shall be used to support the Vermont coalition of clinics for the uninsured health care and dental services provided by clinics for uninsured individuals and families.

     (k)  Of the above Global Commitment funds, $200,000 shall be used for federally qualified health center (FQHC) look-alike uncompensated care pool funds.  All or a portion of these funds shall be reallocated to support the Vermont coalition of clinics for the uninsured health care and dental services provided by clinics for uninsured individuals and families, if federal Section 330 grant funds awards are received by Vermont look alike FQHCs before June 30, 2007.  Any reallocation of these funds shall be pro-rated fairly based on federal awards received.

Sec. 121.  Health -  community public health

                   Personal services                                      14,449,064

                   Operating expenses                                    2,127,292

                   Grants                                                      21,581,824

                        Total                                                   38,158,180

               Source of funds                                                               

                   General fund                                                  900,638

                   Special funds                                              3,231,400

                   Global commitment fund                           15,830,919

                   Catamount fund                                          4,000,000

                   Federal funds                                           14,080,223

                   Interdepartmental transfer                              115,000

                        Total                                                   38,158,180

Sec. 122.  Health -  alcohol and drug abuse programs

                   Personal services                                        9,360,208

                   Operating expenses                                    1,097,983

                   Grants                                                      20,712,146

                        Total                                                   31,170,337

               Source of funds                                                               

                   General fund                                               3,229,571

                   Special funds                                                 235,499

                   Tobacco funds                                           2,382,834

                   Global commitment fund                           16,509,436

                   Federal funds                                             8,662,997

                   Interdepartmental transfer                              150,000

                        Total                                                   31,170,337

     (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 is able 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 this subdivision (1) 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)  Of the above interdepartmental transfer, $150,000 shall be used to support the gambling addiction program. 

     (d)  Of the funds appropriated above, $35,000 shall be used to support the drug court program in Chittenden county, $25,000 shall be used to support the drug court program in Rutland county, and $25,000 shall be used for court coordination in Bennington county.

     (e)  The department of health shall be advised by an executive council of Vermont’s recovery center network on an ongoing basis to prioritize service and funding needs for recovery centers, to assist with the review of recovery center funding proposals, and to provide recommendations for disbursement of funds to the recovery centers and their support needs.  This executive council will consist of a board member of each recovery center.  The executive council will hire a network coordinator with the appropriation in subsection (f) of this section.  The network coordinator will work for the executive council and provide technical assistance and training to recovery centers.  The executive council, working with the department of health, will have oversight of the recovery centers.

     (f)  Of the above appropriation, $45,000 shall be granted to the Vermont recovery center network. 

Sec. 122a.  PUBLIC INEBRIATE PROGRAM STUDY

     (a)  Because Vermont is lacking in appropriate public health and safety crisis services to address the problem of public inebriation as related to chronic alcohol and drug use and the use of jails as a solution to a public health issue poses significant problems for the individuals who are detained, as well as for the local correctional facility that receives the individual, inebriates frequently arrive at correctional facilities without an adequate medical evaluation.  As a result of the complexity of this public health problem, and the fact that it crosses over into the medical and criminal justice area, the department of health is directed to convene a study committee to evaluate the current practice and policy in this area and make recommendations for improvements.

     (b)  The study committee shall include representatives from:

          (1)  the office of the defender general; 

          (2)  public safety and local law enforcement;

          (3)  hospitals;

          (4)  public treatment programs;

          (5)  emergency services workers, including emergency medical technicians;

          (6)  transportation services;

          (7)  department of corrections personnel;

          (8)  peer recovery staff.

     (c)  Recommendations included in the study shall include but not be limited to changes in statutes, program protocols, and resources used to address this important issue.  The department shall report on the results of this review to the house and senate committees on appropriations and the house committee on human services and the senate committee on health and welfare no later than January 15, 2008. 

Sec. 122b.  SUBSTANCE ABUSE TREATMENT SYSTEM; REPORT AND PLAN

     (a)  While over the past four years, systematic efforts have been made to enhance prevention and treatment services in communities across Vermont and partnerships have been engaged between the agency of human services, courts, community providers and schools, substance abuse presents a major health challenge to Vermonters and their families: 

          (1)  Early use by youth results in an unacceptably high number of teens and pre-teens using alcohol and drugs regularly. 

          (2)  Untreated problems develop into serious addictive disorders in the adult population. 

          (3)  The growing number of individuals incarcerated due to their drug/alcohol use presents a challenge to the criminal justice system. 

          (4)  Crises resulting from severe alcoholism and drug dependence stress our emergency rooms and corrections facilities.

     (b)  The department of health shall convene a high level task force to review the pieces currently in place, and identify how to integrate services into a more systematic response to addictive problems, and use of resources in a more effective and efficient manner in order to make real progress in this area.

          (1)  The task force will work with staff to analyze the population projected to be in need of treatment services, and will create a design for the services needed in communities by level of care, and to support long-term recovery.  This plan should be based on the Blueprint for Health chronic care approach.

               (A)  Agency of human service field directors and district health directors shall map local services across the continuum of care and across the sectors from health to criminal justice.  These maps will inform the task force’s analysis of the services and supports that are currently available.

          (2)  The analysis shall be evidence-based and project numbers of people that can be diverted from more expensive and crisis oriented services if we build a more continuous, recovery-based system of supports.  Of particular interest is savings that be realized in the department of corrections.

          (3)  The analysis shall also look at workforce preparation and what needs to be done to develop a mechanism for clinicians to be certified to treat co-occurring mental health and substance abuse disorders. 

     (c)  The department shall prepare and submit a report and plan by January 15, 2008 to the house and senate committees on appropriations. 

Sec. 123.  Health - mental health

                   Personal services                                        4,653,064

                   Operating expenses                                       640,626

                   Grants                                                    126,737,194

                        Total                                                 132,030,884

               Source of funds                                                               

                   General fund                                                  698,116

                   Global commitment fund                         127,296,709

                   Federal funds                                             4,036,059

                        Total                                                 132,030,884

     (a)  Of the above appropriation, $110,000 shall be used to maintain the Burlington downtown outreach program to develop a model program for expansion to other areas of the state.

     (b)  The department shall ensure that the mental health and substance abuse treatment needs are fully funded for eligible children, adolescents, and community rehabilitation and treatment (CRT) program beneficiaries with co-occurring substance abuse and mental health disorders.  The department shall work with the designated service provider agencies and report to the general assembly in January 2008 as to the funds expended to date and as to the adequacy of funding for the remainder of the fiscal year.

     (c)  Success beyond Six is a fiscal mechanism that allows local schools and local designated agencies for community mental health services to enter into contractual relationships for school-based service provision supported in part through state-approved Medicaid billing in the department of health – mental health division.  This fiscal mechanism has reduced the schools’ cost in providing these services by up to 60%.  To date, however, these contracts have been approved conditioned on compliance with Medicaid rules and general fiscal management, not specifically on best practice, efficiency or outcome models.  Under Vermont’s Global Commitment to Health Waiver, Medicaid is no longer an unlimited funding stream; rather it must be managed to a fixed capped amount.  The secretary of the agency of human services and the commissioner of education shall convene a summer study group to ensure that expenditures in this area utilize best practices, yield positive outcomes and are managed to a predictable rate of growth. 

          (1)  This study will result in recommendations regarding:

               (A)  Mechanisms for managing Success beyond Six services in a capped Medicaid environment to ensure the effective delivery of services to school age children and controlled growth;

               (B)  Prioritizing Success beyond Six populations and/or services for growth within the constraints of the waiver cap.  This will include exploring whether or not prevention and mental health wellness programs can or should be funded within this model;

               (C)  Decreasing administrative burdens of service provision where ever possible.

          (2)  A report on the recommendations and a plan for implementation by the agency of human services and department of education will be presented to the house committees on education and human services and the senate committees on education and health and welfare no later than January 15, 2008.

Sec. 124.  Health - Vermont state hospital

                   Personal services                                      19,039,338

                   Operating expenses                                    1,819,499

                   Grants                                                               3,000

                        Total                                                   20,861,837

               Source of funds                                                               

                   General fund                                             20,341,837

                   Special funds                                                 170,000

                   Federal funds                                                  50,000

                   Interdepartmental transfer                              300,000

                        Total                                                   20,861,837

Sec. 125.     Health - medical practice board

                   Personal services                                           617,224

                   Operating expenses                                       407,785

                        Total                                                     1,025,009

               Source of funds                                                               

                   Special funds                                                 905,009

                   Global commitment fund                                120,000

                        Total                                                     1,025,009

Sec. 126.  Department for children and families - administration & support services

                   Personal services                                      33,748,978

                   Operating expenses                                    6,094,778

                   Grants                                                        1,150,215

                        Total                                                   40,993,971

               Source of funds                                                               

                   General fund                                             12,377,866

                   Global commitment fund                           12,890,508

                   Federal funds                                           14,815,041

                   Interdepartmental transfer                              910,556

                        Total                                                   40,993,971

     (a) Of the above appropriation, $14,000 in general funds shall be provided as a grant to the Vermont girl scouts for a program enabling girl scouts and their siblings to visit mothers in prison. 

Sec. 127.  Department for children and families - family services

                   Personal services                                      20,267,158

                   Operating expenses                                    3,118,322

                   Grants                                                      63,390,929

                        Total                                                   86,776,409

               Source of funds                                                               

                   General fund                                             16,373,209

                   Special funds                                              1,756,152

                    Tobacco funds                                                75,000

                   Global commitment fund                           41,832,990

                   Federal funds                                           26,059,058

                   Interdepartmental transfer                              680,000

                        Total                                                   86,776,409

     (a)  The Prevent Child Abuse Vermont program shall submit report to the house and senate committees on appropriations by December 15, 2007 on their statewide curriculum for child protection.

     (b)  Of the above appropriation, up to $200,000 may be allocated for teen parent education programs.

Sec. 128.  Department for children and families - child development

                   Personal services                                        2,943,906

                   Operating expenses                                       762,228

                   Grants                                                      48,541,208

                        Total                                                   52,247,342

               Source of funds                                                               

                   General fund                                             21,500,390

                   Special funds                                                 865,000

                   Global commitment fund                             3,040,746

                   Federal funds                                           26,615,454

                   Interdepartmental transfer                              225,752

                        Total                                                   52,247,342

Sec. 129.  Department for children and families - office of child support

                   Personal services                                        9,027,353

                   Operating expenses                                    3,797,607

                        Total                                                   12,824,960

               Source of funds                                                               

                   General fund                                               2,535,052

                   Special funds                                                 455,718

                   Federal  funds                                            9,446,590

                   Interdepartmental transfer                              387,600

                        Total                                                   12,824,960

Sec. 130.  Department for children and families - office of economic opportunity

                    Personal services                                           223,699

                   Operating expenses                                         80,705

                   Grants                                                        5,253,337

                        Total                                                     5,557,741

               Source of funds                                                               

                   General fund                                               1,038,546

                   Special funds                                                   57,340

                   Federal funds                                             4,210,782

                   Interdepartmental transfer                              251,073

                        Total                                                     5,557,741

     (a)  Of the above general fund appropriation, $485,000 shall be granted to community agencies for homeless assistance by preserving existing services or increasing 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. 131.  Department for children and families - OEO - weatherization assistance

                   Personal services                                           159,531

                   Operating expenses                                       129,950

                   Grants                                                        7,735,000

                        Total                                                     8,024,481

               Source of funds                                                               

                   Special funds                                              6,745,753

                   Federal funds                                             1,278,728

                        Total                                                     8,024,481

     (a)  Of the above special fund appropriation, $400,000 is for the replacement and repair of home heating equipment.

     (b)  On or before January 30 of each year, the office of economic opportunity shall make a report to the house and senate committees on appropriations utilizing existing resources within state government available in the office of economic opportunity's weatherization data management system that compiles performance data available on households weatherized in the past year to include: 1) number of households weatherized; 2) average program expenditure per household for energy efficiency; 3) average percent energy savings; 4) energy and nonenergy benefits combined; 5) benefits saved for every dollar spent; 6) average savings per unit for heating fuels; 7) gallons of oil saved related to equivalent number of homes heated; 8) projected number of households to be weatherized in the current program year; and 9) projected program expenditures for the current program year ending March 31.

Sec. 132.  33 V.S.A. § 2503(g) is amended to read:

     (g)  On or before August 7 of each year, the director of the state economic opportunity office shall set aside a sum of money equaling 12 and one-half  two and one-half percent of the tax receipts of the fuel gross receipts tax for the preceding fiscal year in an escrow account.  The monies in the escrow account are to be used for rebate, as approved under subsections (e) and (f) of this section, of the gross receipts tax established in subsection (a) of this section. Upon approval of rebates, the director shall pay the approved rebates out of the escrow account. In the event that the approved rebates exceed the amount of money set aside in the escrow account, the director shall prorate each rebate. Any balance of rebate awards remaining unpaid as a result of proration may be carried forward for payment in a succeeding year. If monies set aside exceed approved rebates, then the balance shall be returned to the trust fund.  The director of the state economic opportunity office shall use the remainder of the tax receipts of the fuel gross receipts tax for the preceding fiscal year to assure the provision of weatherization services as described in subsections (a), (b) and (c) of section 2502 of this title.

Sec. 133.  Department for children and families - Woodside rehabilitation center

                   Personal services                                        2,632,506

                   Operating expenses                                       624,317

                        Total                                                     3,256,823

               Source of funds                                                               

                   General fund                                               3,201,931

                   Interdepartmental transfer                                54,892

                        Total                                                     3,256,823

Sec. 134.  Department for children and families - disability determination services

                   Personal services                                        3,221,300

                   Operating expenses                                       574,946

                        Total                                                     3,796,246

               Source of funds                                                               

                   Federal funds                                             3,549,729

                   Interdepartmental transfer                              246,517

                        Total                                                     3,796,246

Sec. 135.  Department for children and families - aid to aged, blind and disabled

                   Personal services                                        1,570,699

                   Grants                                                        9,791,580

                        Total                                                   11,362,279

               Source of funds                                                               

                   General fund                                               7,612,279

                   Global commitment fund                             3,750,000

                        Total                                                   11,362,279

     (a)  The commissioner in collaboration with the joint fiscal office shall perform an analysis comparing the cost of having the federal government process the supplemental benefit checks versus having the state or a private contractor process the checks.  The analysis shall include the cost of switching the responsibility for the check processing from the federal government to the state, the most effective time frame to effectuate the switch, and the potential savings from having the state process the checks.  The results of the analysis shall be presented to the house and senate committees on appropriations by December 1, 2007. 

Sec. 136.  Department for children and families - general assistance

                   Grants                                                        4,376,259

               Source of funds                                                               

                   General fund                                               2,854,939

                   Global commitment fund                                410,000

                   Federal funds                                             1,111,320

                        Total                                                     4,376,259

     (a)  Of the above appropriation, $527,000 in federal TANF funds and $50,000 in general funds are allocated to the department for children and families to provide families with rental or mortgage arrearage assistance under section 2114 of Title 33.

     (b)  Of the above appropriation, an amount not to exceed $150,000 ($75,000 in federal TANF and $75,000 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. 

     (c)  Assistance under this section is not an entitlement and shall cease upon expenditure of these allocated funds. 

Sec. 137.  GENERAL ASSISTANCE BENEFITS; FLEXIBILITY PILOT PROGRAM

     (a)  Commencing with state fiscal year 2007 and for a period of up to three years, the agency of human services may establish a pilot assistance program within the general assistance program to create flexibility to provide these general assistance benefits.  The purpose of the pilot program is to mitigate poverty and serve applicants more effectively than currently served with the same amount of general assistance funds.  The pilot program shall operate consistent within existing statutes and rules except that it may grant exceptions to this program’s eligibility rules and may create programs and services as alternatives to these rules during the period of the pilot program.

     (b)  The agency shall engage interested parties in the design and implementation of the pilot program.  The interested parties involved may include both statewide groups and local agencies and groups in the districts where the pilot programs is expected to be implemented. 

     (c)  The pilot program may operate in up to three districts designated by the secretary of human services.  This program will be budget neutral.  For each district in which the agency operates the program, it shall establish procedures for evaluating the pilot and its effects.  The agency shall report annually to the general assembly on its findings from the programs, its recommendations for changes in the general assistance program, and a plan for further implementation of the program. 

     (d)  The department for children and families shall evaluate the general assistance pilot projects established pursuant to Sec. 137a of No. 215 of the Acts of the 2006 to determine whether the pilot projects are meeting the objectives of serving applicants for general assistance more effectively and mitigating poverty without increasing the amount of funds for the program.  The evaluation shall include an analysis of the effect of the modifications to the general assistance program on the outcomes for applicants.

     (e)  The department shall report to the house committees on appropriations and human services and the senate committees on appropriations and health and welfare no later than January 1, 2008 with a summary of the evaluation of the pilots and any recommended changes to the general assistance program.

Sec. 138.  Department for children and families - reach up

                   Grants                                                      39,205,606

               Source of funds                                                               

                   General fund                                             12,677,114

                   Special funds                                            19,403,000

                   Global commitment fund                                  45,685

                   Federal funds                                             7,079,807

                        Total                                                   39,205,606

Sec. 139.  MAINTENANCE-OF-EFFORT; FUNDING; EARNED INCOME TAX CREDIT

     (a)  The department for children and families shall analyze state-funded programs to determine whether the programs meet the federal requirements for TANF maintenance-of-effort in order to maximize the excess maintenance-of-effort available to the state, to increase state flexibility in operating the state’s TANF-funded, solely state-funded, and separate state-funded programs, and to avoid federal financial penalties.

     (b)  Beginning in state fiscal year 2007, the department of taxes shall certify the amount of earned income tax credit provided to families, which include a dependent child, to the department for children and families.  The department for children and families shall claim this amount as a use of federal temporary assistance for needy families (TANF) block grant funds.  The amount certified shall meet the requirements of federal law for purposes of reporting the TANF block grant funds. 

Sec. 140.  TANF EXEMPTION

     (a)  The commissioner may exempt all individuals domiciled in the state of Vermont from the implementation of Sec. 115(a) of Public Law 104-193 through June 30, 2008.

Sec. 141.  Department for children and families - home heating fuel assistance/LIHEAP

                   Personal services                                             20,000

                   Operating expenses                                         90,000

                   Grants                                                      10,146,117

                        Total                                                   10,256,117

               Source of funds                                                               

                   Special funds                                            10,256,117

     (a)  Of the funds appropriated for home heating fuel assistance/LIHEAP in this act, no more than $350,000 shall be expended for crisis fuel direct service/administration exclusive of statewide after-hours crisis coverage.

Sec. 142.  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 2008 and all unexpended LIHEAP funds granted to the state in fiscal year 2007 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, 2007, and program administration, the commissioner of finance and management shall transfer $2,550,000 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 2007-2008 crisis set-aside and seasonal home heating fuel assistance through December 31, 2007, and LIHEAP funds awarded as of December 31, 2007 for fiscal year 2008 do not exceed $2,550.000, subsequent payments under the home heating fuel assistance program shall not be made prior to January 30, 2008.  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, 2007, the commissioner of finance and management may anticipate receipts into the home weatherization assistance trust fund.

     (c)  The secretary of the agency of human services shall propose to the joint fiscal committee at the committee’s July, 2007 meeting a margin over rack pricing agreement and a fixed price agreement for the purchase of heating fuel.  The committee shall review the proposals and make a determination as to whether one of the proposals should be approved.  The intent is to maximize the purchasing power of public funds used in connection with the home heating fuel assistance program.  The proposal required by this section shall include recommendations, where feasible, for all applicable fuels purchased by program beneficiaries.

Sec. 142a.  FUEL ASSISTANCE; ASSET LEVEL REPORT

     (a)  The commissioners of the department for children and families and the department of disabilities, aging, and independent living shall assess the asset eligibility levels for Vermont’s seasonal home heating assistance program, including but not limited to:  how such levels compare to other states; to what extent current levels have kept pace with inflation; and how any increase in such levels would increase caseloads  and impact benefits.  In preparing its assessment, the commissioners shall consult with the Home Energy Assistance  Task Force established pursuant to 33 V.S.A. Sec. 2501a(c).  The commissioners  shall report their findings to the house and senate committees on appropriations on or before January 15, 2008.

Sec. 143.  33 V.S.A. § 2604(a) is amended to read:

     (a)  Household income eligibility requirements.  The secretary, by rule, shall establish household income and asset eligibility requirements of beneficiaries in the seasonal fuel assistance program including the income and assets of all residents of the household. 

          (1)  The income eligibility requirements shall require that households have a net household income no greater than 125 percent of the federal poverty level in order to be potentially eligible for benefits.  Net income shall be derived by making the following deductions from gross income: 20 percent of household members’ gross earned income; 100 percent of federal or state earned income credits received by household members; dependent care expenses that are within an allowable maximum, paid by a household member, and necessary to support a household member’s employment or training for employment, according to criteria established by the secretary by rule; child support or alimony payments made by a household member on behalf of a nonhousehold member that meet criteria established by the secretary by rule; $150.00 for each household member who is 60 years of age or older or disabled according to criteria established by the secretary by rule; any deductions or exclusions required by federal law or regulations; and any other deduction or exclusion established by the secretary by rule.

          (2)  In order to be eligible, a household shall have net household assets no greater than $5,000.00.  The secretary shall establish exclusions from the asset limit by rule. 

Sec. 144.  Department for children and families - food stamp cash out

                   Grants                                                      11,288,833

               Source of funds                                                               

                   Federal funds                                           11,288,833

Sec. 145.  Department for children and families - children's trust fund

                   Grants                                                           340,891

               Source of funds                                                               

                   General fund                                                  100,651

                   Special funds                                                   70,000

                   Federal funds                                                170,240

                        Total                                                        340,891

Sec. 146.  Disabilities, aging and independent living - administration & support

                   Personal services                                      23,442,892

                   Operating expenses                                    3,702,406

                        Total                                                   27,145,298

               Source of funds                                                               

                   General fund                                               6,467,588

                   Special Funds                                                952,910

                   Global Commitment fund                            5,940,176

                   Federal funds                                           11,352,141

                   Interdepartmental transfer                           2,432,483

                        Total                                                   27,145,298

     (a)  The department of disabilities, aging, and independent living, in cooperation with the Vermont center for independent living, shall investigate how many people with physical disabilities are at significant risk of, or living in, nursing homes and other inappropriate settings, and the degree to which additional funding to the Vermont center for independent living will allow these people to live in the most integrated setting possible.  The department shall report its findings to the house and senate committees on appropriations and the house committee on human services and the senate committee on health and welfare by January 15, 2008. 

Sec. 147.  [DELETED]

Sec. 148.  Disabilities, aging and independent living - advocacy and independent living - grants

                   Grants                                                      21,214,486

               Source of funds                                                               

                   General fund                                                9,938,299

                   Global commitment fund                             3,182,896

                   Federal funds                                             7,655,791

                   Interdepartmental transfer                              437,500

                        Total                                                   21,214,486

     (a)  Certification of adult day providers shall require a demonstration that the new program is filling an unmet need for adult day services in a given geographic region.

     (b)  Reimbursement for adult day services shall be at least $13.00 per hour. 

Sec. 149.  Disabilities, aging and independent living - blind and visually impaired

                   Grants                                                        1,486,457

               Source of funds                                                               

                   General fund                                                  364,064

                   Special funds                                                 223,450

                   Global commitment fund                                250,000

                   Federal funds                                                648,943

                        Total                                                     1,486,457

Sec. 150.  Disabilities, aging and independent living - vocational rehabilitation

                   Grants                                                        5,921,471

               Source of funds                                                               

                   General fund                                               1,495,695

                   Federal funds                                             4,132,389

                   Interdepartmental transfer                              293,387

                        Total                                                     5,921,471

Sec. 151.  Disabilities, aging and independent living - TBI home and community based waiver

                   Grants                                                        3,415,448

               Source of funds                                                               

                   Global commitment fund                             3,415,448

Sec. 152.  Disabilities, aging and independent living - developmental services

                   Grants                                                    127,545,146

               Source of funds                                                               

                   General fund                                                  162,964

                   Special funds                                                 185,463

                   Global commitment fund                         126,872,324

                   Federal funds                                                324,395

                        Total                                                 127,545,146

Sec. 153.  Corrections - administration

                   Personal services                                        2,041,100

                   Operating expenses                                       316,087

                        Total                                                     2,357,187

               Source of funds                                                               

                   General fund                                               2,357,187

Sec. 153a.  Corrections – correctional facilities and services

     (a)  The general assembly finds that spending nearly $70,000 per inmate annually at the Dale women’s facility in Waterbury is unsustainable.  The department of corrections shall develop a plan to deal with the cost of incarcerating inmates at the Dale facility, which shall include:

          (1)  Closing the Dale women’s facility permanently by April 1, 2008.

          (2)  Temporarily closing the Chittenden regional correctional facility in South Burlington to perform necessary renovations to reopen it as a women’s correctional and temporary detention facility.  The department of corrections may suggest an alternative facility to house the female prison population.

          (3)  Changing the use of the southeast state correctional facility in Windsor from a women’s correctional facility to either a work camp or a minimum security prison for men.

          (4)  Seeking contracts with public and private correctional services at out-of-state facilities that are as close to this state as possible.

     (b)  The department of corrections’ plan shall have a projected savings of $4,000,000.00 in incarceration costs, half of which shall be reinvested in reentry services provided to inmates after their release. In addition to the requirements of subsection (a) of this section, the plan shall explore a variety of options to meet this goal, including but not limited to:

          (1)  Recommended changes to department policies and practices that will result in a reduction of at least 10 percent in the number of inmates incarcerated for non-violent offenses by June 30, 2008.

          (2)  Utilizing less costly community-based alternatives to incarceration for non-violent offenders.

          (3)  Amending the eligibility criteria that would expand the use of electronic monitoring through a global positioning system as means of reducing the non-violent incarcerated population.

     (c)  The department of corrections shall report the plan developed pursuant to subsections (a) and (b) of this section to the joint fiscal committee and the joint corrections oversight committee no later than November 1, 2007.

Sec. 154.  Corrections - parole board

                    Personal services                                           306,179

                   Operating expenses                                         65,555

                        Total                                                        371,734

               Source of funds                                                               

                   General fund                                                  371,734

Sec. 155.  Corrections - correctional education

                   Personal services                                        3,875,474

                   Operating expenses                                       343,662

                        Total                                                     4,219,136

               Source of funds                                                               

                   General fund                                               3,321,986

                   Interdepartmental transfer                              897,150

                        Total                                                     4,219,136

Sec. 156.  Corrections - correctional services

                   Personal services                                      73,795,693

                   Operating expenses                                  31,361,582

                   Grants                                                        1,660,500

                        Total                                                 103,817,775

               Source of funds                                                               

                   General fund                                             99,470,305

                   Special funds                                                 597,919

                   Tobacco fund                                                  87,500

                   Global commitment fund                             2,894,144

                   Federal funds                                                686,861

                   Interdepartmental transfer                                81,046

                        Total                                                 103,817,775

     (a)  Of the above general fund appropriation, $103,000 shall be used as a grant to Dismas House of Vermont, Inc. 

     (b)  The commissioner of corrections and the commissioner of buildings and general services shall reduce the projected $129,000 increase in fleet related expenses.  The $129,000 shall be redirected to offender re-entry programs.

Sec. 157.  Corrections - correctional services - out-of-state beds

                   Operating expenses                                    9,621,342

               Source of funds                                                               

                   General fund                                               9,621,342

Sec. 158.  Corrections - correctional facilities - recreation

                   Personal services                                           603,012

                   Operating expenses                                       523,986

                        Total                                                     1,126,998

               Source of funds                                                               

                   General fund                                                  125,000

                   Special funds                                               1,001,998

                        Total                                                     1,126,998

Sec. 159.  Corrections - Vermont offender work program

                   Personal services                                        1,412,977

                   Operating expenses                                    1,909,635

                        Total                                                     3,322,612

               Source of funds                                                               

                   Internal service funds                                  3,322,612

Sec. 160.  Vermont veterans' home - care and support services

                   Personal services                                      13,342,317

                   Operating expenses                                    3,084,150

                        Total                                                   16,426,467

               Source of funds                                                               

                   Special funds                                            10,466,920

                   Global commitment fund                                913,047

                   Federal funds                                             5,046,500

                        Total                                                   16,426,467

     (a)  If Global Commitment fund monies are unavailable, the total funding for the Vermont veterans' home shall be maintained through the general fund or other state funding sources.

     (b)  The veterans' home is authorized to spend up to $200,000 of carry forward funds from fiscal year 2007 to fiscal year 2008 on building maintenance and improvement projects.


Sec. 161.  Commission on women

                   Personal services                                           207,262

                   Operating expenses                                         58,628

                        Total                                                        265,890

               Source of funds                                                               

                   General fund                                                  260,890

                   Special funds                                                     5,000

                        Total                                                        265,890

Sec. 162.  Retired senior volunteer program

                   Grants                                                           131,096

               Source of funds                                                               

                   General fund                                                  131,096

Sec. 163.  Total human services                               2,532,453,210

               Source of funds                                                               

                   General fund                                           494,720,296

                   Special funds                                            76,237,668

                   Tobacco fund                                           35,546,820

                   Global commitment fund                         852,894,638

                   State health care resources fund              157,167,075

                   Catamount fund                                        13,015,143

                   Federal funds                                         883,324,139

                   Permanent trust funds                                      10,000

                   Internal service funds                                  3,322,612

                   Interdepartmental transfer                         16,214,819

                        Total                                              2,532,453,210

Sec. 164.  Labor - programs

                   Personal services                                      19,476,718

                   Operating expenses                                    4,317,857

                   Grants                                                        1,665,000

                        Total                                                   25,459,575

               Source of funds                                                               

                   General fund                                               2,135,711

                   Special funds                                              2,581,586

                   Catamount fund                                             315,258

                   Federal funds                                           18,326,794

                   Interdepartmental transfer                           2,100,226

                        Total                                                   25,459,575


Sec. 165.  Labor - administration

                   Personal services                                        2,463,105

                   Operating expenses                                       764,672

                        Total                                                     3,227,777

               Source of funds                                                               

                   General fund                                                  222,484

                   Special funds                                                 315,633

                   Catamount fund                                               78,814

                   Federal funds                                             2,307,234

                   Interdepartmental transfer                              303,612

                        Total                                                     3,227,777

     (a)  Any foster care payments excluded from the definition of gross income under the Internal Revenue Code Title 26 Section 131 shall not be considered wages under 21 V.S.A. § 1301 (12).

Sec. 166.  Labor - domestic and sexual violence survivors' transitional employment program

                   Grants                                                             30,000

               Source of funds                                                               

                   Special fund                                                     30,000

Sec. 167.  Total labor                                                   28,717,352

               Source of funds                                                               

                   General fund                                               2,358,195

                   Special funds                                              2,927,219

                   Catamount fund                                             394,072

                   Federal funds                                           20,634,028

                   Interdepartmental transfer                           2,403,838

                        Total                                                   28,717,352

Sec. 168.  Education - finance and administration

                   Personal services                                        4,930,371

                   Operating expenses                                    1,671,659

                   Grants                                                      14,505,600

                        Total                                                   21,107,630

               Source of funds                                                               

                   General fund                                               3,435,105

                   Special funds                                            14,983,034

                   Global commitment fund                                822,999

                   Federal funds                                             1,859,375

                   Interdepartmental transfer                                  7,117

                        Total                                                   21,107,630

Sec. 169.  EDUCATION; EXCESS SPENDING; EXCEPTION

     (a)  Notwithstanding any provision of 32 V.S.A. § 5401(12) and upon approval of the commissioner of education, excess spending shall not include any deficit repayment that arose solely from the unexpected cost of paying for additional personnel who were needed after the budget was passed due to extraordinary circumstances resulting in the loss of life of school personnel on school grounds.

Sec. 170.  UNEXPECTED COST OF PERSONNEL; LOAN

     (a)  The executive director of the center for crime victims services may lend up to $300,000, without interest, from the crime victims’ restitution special fund, created pursuant to 13 V.S.A. § 5363, to a school district to pay for a budget deficit that arose solely from the unexpected cost of paying for additional personnel, who were needed purely because of extraordinary circumstances resulting in the loss of life of school personnel on school grounds, if the district’s loan request is approved by the commissioner of education.  The district shall fully repay the loan in installments made over a period not to exceed five years.  The center shall report annually to the state treasurer on the payments and receivables related to the loan.

Sec. 171.  Education - education services

                   Personal services                                      12,540,453

                   Operating expenses                                    1,962,260

                   Grants                                                    109,759,876

                        Total                                                 124,262,589

               Source of funds                                                               

                   General fund                                               7,714,165

                   Transportation fund                                       127,483

                   Special funds                                              1,971,782

                   Federal funds                                         114,200,027

                   Interdepartmental transfer                              249,132

                        Total                                                 124,262,589

Sec. 172.  Education - technical education

                   Grants                                                      11,612,818

               Source of funds                                                               

                   Education fund                                         11,612,818

     (a)  The appropriation in this section shall be authorized notwithstanding 16 V.S.A. § 1564.


Sec. 173.  Education - special education: formula grants

                   Grants                                                    133,794,159

               Source of funds                                                               

                   Education fund                                       133,564,159

                   Global commitment fund                                230,000

                        Total                                                 133,794,159

     (a)  Of the appropriation authorized in this section and notwithstanding any other provision of law, an amount not to exceed $3,170,820 shall be used by the department of education in fiscal year 2008 as funding for 16 V.S.A. § 2967(b)(2)-(6).  In addition to funding for 16 V.S.A. § 2967(b)(2)-(6), up to $162,872 may be used by the department of education for its participation in the higher education partnership plan.

Sec. 174.  Education - state-placed students

                   Grants                                                      14,750,000

               Source of funds                                                               

                   Education fund                                         14,750,000

     (a)  The Independence Place program of the Lund Family Center shall be considered a 24-hour residential program for the purposes of reimbursement of education costs.

Sec. 175.  Education - adult education and literacy

                   Grants                                                        4,593,059

               Source of funds                                                               

                   General fund                                               2,717,398

                   Education fund                                           1,000,000

                   Federal funds                                                875,661

                        Total                                                     4,593,059

Sec. 176.  Education - adjusted education payment

                   Grants                                                 1,069,705,050

               Source of funds                                                               

                   Education fund                                    1,069,705,050

Sec. 177.  Education - essential early education grant

                   Grants                                                        5,199,124

               Source of funds                                                               

                   Education fund                                           5,199,124


Sec. 178.  Education - transportation

                   Grants                                                      14,453,479

               Source of funds                                                               

                   Education fund                                         14,453,479

Sec. 179.  Education - small school grants

                   Grants                                                        5,925,000

               Source of funds                                                               

                   Education fund                                           5,925,000

Sec. 180.  Education - capital debt service aid

                   Grants                                                           281,774

               Source of funds                                                               

                   Education fund                                              281,774

Sec. 181.  Education - tobacco litigation

                   Personal services                                           145,112

                   Operating expenses                                         18,119

                   Grants                                                           832,437

                        Total                                                        995,668

               Source of funds                                                               

                   Tobacco fund                                                995,668

Sec. 182.  Education - Act 117 Cost Containment

                   Personal services                                        1,070,190

                    Operating expenses                                       121,515

                   Grants                                                             91,000

                        Total                                                     1,282,705

               Source of funds                                                               

                   Special funds                                              1,282,705

     (a)  Notwithstanding any provisions of law, expenditures made from this section shall be counted under 16 V.S.A. § 2967(b) 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. 183.  FUND APPROPRIATION AND TRANSFER

     (a)  There is appropriated in fiscal year 2008 from the general fund for transfer to the education fund the amount of $280,200,000.


Sec. 184.  16 V.S.A. § 4025(a)(2) is amended to read:

          (2)  Funds appropriated or transferred by the general assembly, and in fiscal year 2006 and thereafter there is appropriated and transferred from the general fund to the education fund the amount appropriated and transferred in the prior fiscal year adjusted by the percentage change in general fund base spending in the current fiscal year For each fiscal year, the governor shall present a budget to the legislature providing for a general fund appropriation and transfer to the education fund in this amount, and the legislature shall appropriate and transfer this amount adjusted as necessary to reflect the actual amount of general fund base spending enacted by the legislature for that fiscal year.  For each fiscal year, the amount of the general funds appropriated or transferred to the education fund shall be $280,200,000 increased by the most recent New England economic project cumulative price index, as of November 15, for state and local government purchases of goods and services from fiscal year 2008 through the fiscal year for which the payment is being determined, plus an additional one-tenth of one percent.

***

Sec. 185.  [DELETED] 

Sec. 186.  State teachers' retirement system

                   Personal services                                      20,887,841

                   Operating expenses                                       884,783

                   Grants                                                      32,549,097

                        Total                                                   54,321,721

               Source of funds                                                               

          General fund                                                       32,549,097

                   Pension trust funds                                    21,772,624

                        Total                                                   54,321,721

     (a)  Notwithstanding 16 V.S.A. § 1944(g)(2), the amount of annual contribution to the Vermont state teachers' retirement system shall be $32,549,097 in fiscal year 2008.

     (b)  In accordance with 16 V.S.A. § 1944(c)(2), of the above grant appropriation $26,567,961 is appropriated as the "normal contribution," and $5,981,136 is appropriated as the "accrued liability contribution."  The state teachers' retirement system will be fully funded for the actuarial recommendation for fiscal year 2008 by using one-time general fund revenues of $7,000,000 appropriated in Sec. 274(a)(7) of this act combined with an estimated $1,200,000 of Medicare Part D reimbursement funds.


Sec. 187.  TAX DEPARTMENT - REAPPRAISAL AND LISTING PAYMENTS

     (a)  The amount of $3,228,945 in education funds is appropriated in fiscal year 2008 to implement the provisions of 32 V.S.A. § 4041a(a) relating to payments to municipalities for reappraisal costs, and  5405(f) relating to payments of $1.00 per grand list parcel.

Sec. 188.  Renter rebate

               Grants                                                              7,624,823

               Source of funds                                                               

                   General fund                                               2,277,149

                   Education fund                                           5,347,674

                        Total                                                     7,624,823

Sec. 189.  Total general education and property

 tax assistance                                                          1,753,338,544

               Source of funds                                                               

                   General fund                                           328,892,914

                   Transportation fund                                       127,483

                   Education fund                                    1,265,068,023

                   Special funds                                            18,237,521

                   Tobacco fund                                                995,668

                   Global commitment fund                             1,052,999

                   Federal funds                                         116,935,063

                   Pension trust funds                                    21,772,624

                    Interdepartmental transfer                              256,249

                        Total                                              1,753,338,544

Sec. 190.  University of Vermont

                   Grants                                                      41,336,293

               Source of funds                                                               

                   General fund                                             37,418,776

                   Global commitment fund                             3,917,517

                        Total                                                   41,336,293

     (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 fifteenth day of each calendar month of the year.

     (b)  Of the above appropriation, $393,807 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.

     (c)  If Global Commitment fund monies are unavailable, the total grant funding for the University of Vermont shall be maintained through the general fund or other state funding sources.

Sec. 191.  University of Vermont- Morgan horse farm

                   Grants                                                               5,200

               Source of funds                                                               

                   General fund                                                      5,200

Sec. 192.  Vermont public television

                   Grants                                                           605,737

               Source of funds                                                               

                   General fund                                                  605,737

Sec. 193.  Vermont state colleges

                   Grants                                                      23,765,480

               Source of funds                                                               

                   General fund                                             23,765,480

     (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 fifteenth day of each calendar month of the year.

     (b)  Of the above appropriation, $445,358 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. 194.  Vermont state colleges - allied health

                   Grants                                                        1,052,759

               Source of funds                                                               

                   General fund                                                  653,540

                   Global Commitment fund                               399,219

                        Total                                                     1,052,759

     (a)  If Global Commitment fund monies are unavailable, the total grant funding for the Vermont state colleges shall be maintained through the general fund or other state funding sources.

Sec. 195.  Vermont interactive television

                   Grants                                                           858,163

               Source of funds                                                               

                   General fund                                                  858,163


Sec. 196.  Vermont student assistance corporation

                   Grants                                                      18,954,149

               Source of funds                                                               

                   General fund                                              18,954,149

     (a)  Of the above appropriation, $25,000 is appropriated from the general fund to the Vermont student assistance corporation to be deposited into the trust fund established in 16 V.S.A. § 2845.  It is the intent of the general assembly that the amount of $25,000 continue to be appropriated from the general fund on an ongoing, annually recurring basis for this purpose.

     (b)  Except as provided in subsection (a) of this section, not less than 100 percent of grants shall be used for direct student aid.

Sec. 196a.  Sec. 2 of No. 72 of the Acts of 2004 is amended to read:

Sec. 2.  APPROPRIATION; SUNSET

(a)  The amount of $25,000.00 is appropriated from the general fund to the Vermont Student Assistance Corporation for deposit into the trust fund established in 16 V.S.A. § 2845.  It is the intent of the general assembly to appropriate another $25,000.00 for this purpose in each of the next four fiscal years.

(b)  This act shall be repealed on July 1, 2008.  Notwithstanding 16 V.S.A. § 2845(a), in fiscal year 2008, the board of the Vermont Student Assistance Corporation may withdraw up to 100 percent of the assets in the trust fund established in Sec. 1 of this act.  If any funds remain in the trust fund upon repeal of this act, the funds shall be used by the Vermont Student Assistance Corporation to provide incentive grants under 16 V.S.A. § 2844.

Sec. 197.  New England higher education compact

          Grants                                                                        80,000

               Source of funds                                                               

                   General fund                                                    80,000

Sec. 198.  Total higher education and other                  86,657,781

               Source of funds                                                               

                   General fund                                             82,341,045

                   Global commitment fund                             4,316,736

                        Total                                                   86,657,781

Sec. 199.  Natural resources - agency of natural resources - administration

                   Personal services                                        4,759,758

                   Operating expenses                                    1,828,960

                   Grants                                                             31,500

                        Total                                                     6,620,218

               Source of funds                                                               

                   General fund                                               4,906,556

                   Special funds                                              1,095,911

                   Federal funds                                                441,000

                   Interdepartmental transfer                              176,751

                        Total                                                     6,620,218

Sec. 200.  Connecticut river watershed advisory commission

                   Grants                                                             60,000

               Source of funds                                                               

                   General fund                                                    60,000

Sec. 201.  Citizens' advisory committee on Lake Champlain's future

                   Personal services                                               3,600

                   Operating expenses                                           3,900

                        Total                                                            7,500

               Source of funds                                                               

                   General fund                                                      7,500

Sec. 202.  Natural resources - state land local property tax assessment

                   Operating expenses                                    1,574,000

               Source of funds                                                               

                   General fund                                               1,312,500

                   Interdepartmental transfer                              261,500

                        Total                                                     1,574,000

Sec. 203.  Green up

                   Operating expenses                                           5,057

                    Grants                                                             10,550

                        Total                                                          15,607

               Source of funds                                                               

                   General fund                                                      5,057

                   Special funds                                                   10,550

                        Total                                                          15,607

Sec. 204.  Fish and wildlife - support and field services

                   Personal services                                      10,890,281

                   Operating expenses                                    4,316,728

                   Grants                                                           717,875

                        Total                                                   15,924,884

               Source of funds                                                               

                   General fund                                                2,131,687

                   Fish and wildlife fund                                13,775,694

                   Interdepartmental transfer                                17,503

                        Total                                                   15,924,884

Sec. 205.  Fish and wildlife - watershed improvement

                   Grants                                                             75,000

               Source of funds                                                               

                   Fish and wildlife fund                                       75,000

Sec. 206.  Forests, parks and recreation - administration

                   Personal services                                        1,002,905

                   Operating expenses                                       703,107

                   Grants                                                        1,830,100

                        Total                                                     3,536,112

               Source of funds                                                               

                   General fund                                               1,225,112

                   Special funds                                              1,406,000

                   Federal funds                                                905,000

                        Total                                                     3,536,112

Sec. 207.  Forests, parks and recreation - forestry

                   Personal services                                        4,638,283

                   Operating expenses                                       668,116

                   Grants                                                           313,000

                        Total                                                     5,619,399

               Source of funds                                                               

                   General fund                                               3,932,399

                   Special funds                                                 360,000

                   Federal funds                                             1,300,000

                   Interdepartmental transfer                                27,000

                        Total                                                     5,619,399

Sec. 208.  Forests, parks and recreation - state parks

                   Personal services                                        5,131,552

                   Operating expenses                                    2,230,611

                        Total                                                     7,362,163

               Source of funds                                                               

                   General fund                                                  956,226

                   Special funds                                              6,405,937

                        Total                                                     7,362,163


Sec. 209.  Forests, parks and recreation - lands administration

                   Personal services                                           486,557

                   Operating expenses                                       230,261

                        Total                                                        716,818

               Source of funds                                                               

                   General fund                                                  486,818

                   Special fund                                                  145,000

                   Federal funds                                                  50,000

                   Interdepartmental transfer                                35,000

                        Total                                                        716,818

Sec. 210.  Forests, parks and recreation - youth conservation corps

                   Personal services                                           292,523

                   Operating expenses                                           9,593

                   Grants                                                           450,000

                        Total                                                        752,116

               Source of funds                                                               

                   General fund                                                    50,000

                   Special funds                                                 358,116

                   Federal funds                                                  94,000

                   Interdepartmental transfer                              250,000

                        Total                                                        752,116

Sec. 211.  Forests, parks and recreation - forest highway maintenance

                   Personal services                                           222,978

                   Operating expenses                                       101,000

                        Total                                                        323,978

               Source of funds                                                               

                   General fund                                                  323,978

Sec. 212.  Environmental conservation - management and support services

                   Personal services                                        3,024,560

                   Operating expenses                                       890,844

                   Grants                                                             79,024

                        Total                                                     3,994,428

               Source of funds                                                               

                   General fund                                               1,181,587

                   Special funds                                                 790,540

                   Federal funds                                             1,111,505

                   Interdepartmental transfer                              910,796

                        Total                                                     3,994,428


Sec. 213.  Environmental conservation - air and waste management

                   Personal services                                        7,788,764

                   Operating expenses                                    6,123,303

                   Grants                                                        1,704,585

                        Total                                                   15,616,652

               Source of funds                                                               

                   General fund                                               1,107,695

                   Special funds                                            11,180,272

                   Federal funds                                             3,154,700

                   Interdepartmental transfer                              173,985

                        Total                                                   15,616,652

Sec. 214.  Environmental conservation - office of water programs

                   Personal services                                      13,398,869

                   Operating expenses                                    2,169,397

                   Grants                                                        2,948,623

                        Total                                                   18,516,889

               Source of funds                                                               

                   General fund                                               6,917,948

                   Special funds                                              4,530,176

                   Federal funds                                             6,603,765

                   Interdepartmental transfer                              465,000

                        Total                                                   18,516,889

Sec. 215.  Environmental conservation - tax-loss-Connecticut river flood control

                   Operating expenses                                         40,000

               Source of funds                                                               

                   Special funds                                                   40,000

Sec. 216.  Natural resources board 

                   Personal services                                        2,400,747

                   Operating expenses                                       431,292

                        Total                                                     2,832,039

               Source of funds                                                               

                   General fund                                               1,057,827

                   Special funds                                              1,774,212

                        Total                                                     2,832,039

Sec. 217.  Total natural resources                                 83,587,803

               Source of funds                                                               

                   General fund                                             25,662,890

                   Fish and wildlife fund                                13,850,694

                   Special funds                                            28,096,714

                   Federal funds                                           13,659,970

                   Interdepartmental transfer                           2,317,535

                        Total                                                   83,587,803

Sec. 218.  Commerce and community development - agency of commerce and community development - administration

                   Personal services                                        2,113,879

                   Operating expenses                                       782,330

                   Grants                                                        1,046,200

                        Total                                                     3,942,409

               Source of funds                                                               

                   General fund                                               2,874,982

                   Federal funds                                                800,000

                   Interdepartmental transfer                              267,427

                        Total                                                     3,942,409

     (a)  The agency and the department shall present a report to the joint fiscal committee at its November 2007 meeting.  This report shall include recommendations for potential changes to the current funding and structure of the states regional economic development system.  These may include expansion, elimination or consolidation of regional development corporations.

Sec. 219.  Housing and community affairs

                   Personal services                                        2,307,833

                   Operating expenses                                       361,339

                   Grants                                                        4,415,137

                        Total                                                     7,084,309

               Source of funds                                                               

                   General fund                                               1,390,297

                   Special funds                                              3,991,815

                   Federal funds                                             1,646,697

                   Interdepartmental transfer                                55,500

                        Total                                                     7,084,309

     (a)  Of the above appropriation, no less than $60,000 in general funds shall be granted to the Champlain Valley office of economic opportunity's mobile home project for the "First Stop" program, which provides assistance to mobile home residents statewide.

     (b)  The division and programs funded by grants from this appropriation shall seek to reduce mailing expenses by using e-mail for notifications wherever appropriate.

Sec. 220.  Historic sites - operations

                   Personal services                                           636,402

                   Operating expenses                                       305,208

                        Total                                                        941,610

               Source of funds                                                               

                   General fund                                                  542,327

                   Special funds                                                 369,652

                   Interdepartmental transfer                                29,631

                        Total                                                        941,610

Sec. 221.  Historic sites - special improvements

                   Personal services                                           427,660

                   Operating expenses                                       778,705

                        Total                                                     1,206,365

               Source of funds                                                               

                   Special funds                                                   50,000

                   Federal funds                                                472,961

                   Interdepartmental transfer                              683,404

                        Total                                                     1,206,365

Sec. 222.  Community development block grants

                   Grants                                                        7,446,530

               Source of funds                                                               

                   Federal funds                                             7,446,530

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

     (b)  Community development block grant (CDBG) funds shall be expended in accordance with and in the order of the following priorities:

          (1)  The greatest priority for the use of CDBG funds will be the creation and retention of affordable housing and jobs.

          (2)  The overarching priority and fundamental objective in the use of funds for all affordable housing is to achieve perpetual affordability through the use of mechanisms that produce housing resources that will continue to remain affordable over time. It is the goal of the state to maintain at least 45 to 55 percent of CDBG funds for affordable housing applications.

          (3)  Among affordable housing applications, the highest priorities are to preserve and increase the supply of affordable family housing, to reduce and strive to eliminate childhood homelessness, and to serve families and individuals at or below 30 percent of HUD Area Median Income and people with special needs as described in the Consolidated Plan.  Housing for seniors should be considered a priority when it meets clear unmet needs in the region for the lowest income seniors.

          (4)  Projects which address the ongoing deterioration of the existing housing stock through acquisition, preservation, and rehabilitation of units shall comply with housing quality standards with priority given to lead hazard reduction and energy efficiency.

          (5)  Preference shall be given to projects that maintain the historic settlement pattern of compact village and downtown centers separated by a rural working landscape. Funds generally should not be awarded to projects that promote or constitute sprawl, defined as dispersed development outside of compact urban and village centers, along highways, and in rural countryside.

     (c)  Up to $750,000 may be set aside for brownfield sites after submission of a plan to the joint fiscal committee.  Of this amount, the agency of commerce and community development may commit such amounts it deems necessary and appropriate to the regional revolving loan fund for the purpose of assisting income eligible homeowners to replace failed wastewater or potable water supply systems.  Funds not expended for this assistance in any grant round shall be made available for applications that address the priorities in (1)-(5) of subsection (b) of this section.  By January 15, 2008, the agency shall report to the house and senate committees on appropriations and natural resources and energy on the amounts expended to replace failed systems, including the number of homeowners assisted and the counties in which such assistance was provided.

Sec. 223.  Downtown transportation and capital improvement fund

                   Personal services                                             40,000

                   Grants                                                           760,000

                        Total                                                        800,000

               Source of funds                                                               

                   Special funds                                                 800,000

Sec. 224.  Economic development

                   Personal services                                        1,934,901

                   Operating expenses                                       639,216

                   Grants                                                        1,716,378

                        Total                                                     4,290,495

               Source of funds                                                               

                   General fund                                               3,574,675

                   Special funds                                                 517,350


                   Federal funds                                                198,470

                        Total                                                     4,290,495

(a)  Included in the above appropriation is a $72,000 increase over fiscal year 2007 for the regional development corporations.  These additional funds shall be distributed only to the regional development corporations that are fulfilling their contractual obligations in a timely and proper manner.

Sec. 225.  [DELETED]

Sec. 226.  Vermont training program

                   Personal services                                           136,477

                   Operating expenses                                         19,928

                   Grants                                                        1,486,789

                        Total                                                     1,643,194

               Source of funds                                                               

                   General fund                                               1,608,194

                   Special funds                                                   35,000

                        Total                                                     1,643,194

Sec. 227.  Tourism and marketing

                   Personal services                                        1,635,474

                   Operating expenses                                    2,171,653

                   Grants                                                           367,000

                        Total                                                     4,174,127

               Source of funds                                                               

                   General fund                                               4,168,127

                   Special funds                                                     6,000

                        Total                                                     4,174,127

Sec. 228.  Vermont life

                   Personal services                                           693,124

                   Operating expenses                                         96,769

                        Total                                                        789,893

               Source of funds                                                               

                   Enterprise funds                                             789,893

Sec. 229.  Vermont council on the arts

                   Grants                                                           545,618

               Source of funds                                                               

                   General fund                                                  545,618


Sec. 230.  Vermont symphony orchestra

                   Grants                                                           122,343

               Source of funds                                                               

                   General fund                                                  122,343

Sec. 231.  Vermont historical society

                   Grants                                                           849,673

               Source of funds                                                               

                   General fund                                                  849,673

Sec. 232.  Vermont housing and conservation board

                   Grants                                                      25,087,472

               Source of funds                                                               

                   Special funds                                            15,383,258

                   Federal funds                                             9,704,214

                        Total                                                   25,087,472

     (a)  As required by 10 V.S.A. § 321(b), the housing and conservation board shall expend HOME funds solely for the development of perpetually affordable housing and to leverage additional funds for such purpose.  Notwithstanding the limitations in 10 V.S.A. §321(b), and this subsection, the housing and conservation board may expend up to $200,000 of HOME funds in fiscal year 2008 to assist Vermont owners of affordable housing to replace failed wastewater or potable water supply systems, provided that (i) priority will be given to homes that are perpetually affordable, (ii) HOME funds shall be highly leveraged by other public and private funds; and (iii) HOME funds shall be secured by due on sale mortgages.

Sec. 232a.  10 V.S.A. § 6093(b) is added to read:

     (b) Easements required for protected lands. All primary agricultural soils preserved for commercial or economic agricultural use by the Vermont housing and conservation board pursuant to this section shall be protected by permanent conservation easements (grant of development rights and conservation restrictions) conveyed to a qualified holder, as defined in section 821 of this title, with the ability to monitor and enforce easements in perpetuity.  Offsite mitigation fees may be used by the Vermont Housing and Conservation Board to pay reasonable staff/transaction costs of the board and Agency of Agriculture, Food, and Markets to preserve primary agricultural soils or to implement sections 6086(a)(9)(B) or 6093 of this title.


Sec. 233.  Vermont humanities council

                   Grants                                                           185,599

               Source of funds                                                               

                   General fund                                                  185,599

Sec. 234.  Total commerce and community

development                                                                 59,109,637

               Source of funds                                                               

                   General fund                                             15,861,835

                   Special funds                                            21,153,075

                   Federal funds                                           20,268,872

                   Enterprise funds                                             789,893

                   Interdepartmental transfer                           1,035,962

                        Total                                                   59,109,637

Sec. 235.  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. 236.  Transportation - finance and administration

                   Personal services                                        8,878,609

                   Operating expenses                                    2,475,584

                        Total                                                   11,354,193

               Source of funds                                                               

                   Transportation fund                                  10,903,302

                   Federal funds                                                450,891

                        Total                                                   11,354,193

Sec. 237.  Transportation - aviation 

                   Personal services                                        1,761,751

                   Operating expenses                                    5,295,449

                   Grants                                                           160,000

                        Total                                                     7,217,200

               Source of funds                                                               

                   Transportation fund                                    2,123,200

                   Federal funds                                             5,094,000

                        Total                                                     7,217,200

Sec. 238.  Transportation - buildings

                   Personal services                                             76,579

                   Operating expenses                                     1,572,421

                        Total                                                     1,649,000

               Source of funds                                                               

                   Transportation fund                                    1,649,000

Sec. 239.  Transportation - program development

                   Personal services                                      35,867,267

                   Operating expenses                                113,249,085

                   Grants                                                      26,116,926

                        Total                                                 175,233,278

               Source of funds                                                               

                   Transportation fund                                  34,265,434

                   Local match                                               1,788,677

                   Federal funds                                         134,009,167

                   Interdepartmental transfer                           5,170,000

                        Total                                                 175,233,278

Sec. 240.  Transportation - rest areas

                   Personal services                                           100,000

                   Operating expenses                                    3,550,000

                        Total                                                     3,650,000

               Source of funds                                                               

                   Transportation fund                                       391,760

                   Federal funds                                             3,258,240

                        Total                                                     3,650,000

Sec. 241.  Transportation - maintenance state system

                   Personal services                                      32,933,303

                   Operating expenses                                  30,711,345

                   Grants                                                           206,500

                        Total                                                   63,851,148

               Source of funds                                                               

                   Transportation fund                                  60,027,213

                   Federal funds                                             3,723,935

                   Interdepartmental transfer                              100,000

                        Total                                                   63,851,148


Sec. 242.  Transportation - policy and planning

                   Personal services                                        4,751,662

                   Operating expenses                                    1,023,485

                   Grants                                                        5,253,815

                        Total                                                   11,028,962

               Source of funds                                                               

                   Transportation fund                                    2,380,861

                   Federal funds                                             8,148,101

                   Interdepartmental transfer                              500,000

                        Total                                                   11,028,962

Sec. 243.  Transportation - rail 

                   Personal services                                        5,102,227

                   Operating expenses                                  14,243,260

                   Grants                                                        3,320,000

                        Total                                                   22,665,487

               Source of funds                                                               

                   Transportation fund                                  10,053,487

                   Federal funds                                           12,612,000

                        Total                                                   22,665,487

Sec. 244.  Transportation - bridge maintenance

                   Operating expenses                                    4,865,945

               Source of funds                                                               

                   Transportation fund                                    1,734,495

                   Federal funds                                             3,131,450

                        Total                                                     4,865,945

Sec. 245.  Transportation - public transit

                   Personal services                                           948,669

                   Operating expenses                                         77,517

                   Grants                                                       16,641,035

                        Total                                                   17,667,221

               Source of funds                                                               

                   Transportation fund                                    6,271,620

                   Federal funds                                           11,395,601

                        Total                                                   17,667,221

Sec. 246.  Transportation - central garage

                   Personal services                                        3,245,502

                   Operating expenses                                  11,366,120

                        Total                                                   14,611,622

               Source of funds                                                               

                   Internal service funds                                14,611,622

Sec. 247.  Department of motor vehicles

                   Personal services                                      17,247,036

                   Operating expenses                                    7,629,667

                   Grants                                                           339,000

                        Total                                                   25,215,703

               Source of funds                                                               

                   Transportation fund                                  23,441,564

                   Federal funds                                             1,774,139

                        Total                                                   25,215,703

Sec. 248.  Transportation - town highway structures

                   Grants                                                        3,494,500

               Source of funds                                                               

                   Transportation fund                                    3,494,500

Sec. 249.  Transportation - town highway emergency fund

                   Grants                                                           750,000

               Source of funds                                                               

                   Transportation fund                                       750,000

Sec. 250.  Transportation - town highway Vermont local roads 

                   Grants                                                           375,000

               Source of funds                                                               

                   Transportation fund                                       235,000

                   Federal funds                                                140,000

                        Total                                                        375,000

Sec. 251.  Transportation - town highway class 2 roadway

                   Grants                                                        5,748,750

               Source of funds                                                               

                   Transportation fund                                    5,748,750

                        Total                                                     5,748,750

Sec. 252.  Transportation - town highway bridges

                   Personal services                                        3,650,000

                   Operating expenses                                  19,400,019

                   Grants                                                           382,200

                        Total                                                   23,432,219

               Source of funds                                                               

                   Transportation fund                                    3,800,136

                   Local match                                               1,170,226

                   Federal funds                                           18,461,857

                        Total                                                   23,432,219

Sec. 253.  Transportation - town highway aid program

                   Grants                                                      24,982,744

               Source of funds                                                               

                   Transportation fund                                  24,982,744

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

Sec. 254.  Transportation - town highway class 1 supplemental grants

                   Grants                                                           128,750

               Source of funds                                                               

                   Transportation fund                                       128,750

Sec. 255.  Transportation - municipal mitigation grant program

                   Grants                                                        2,112,998

               Source of funds                                                               

                   Transportation fund                                       247,998

                   Federal funds                                             1,865,000

                        Total                                                     2,112,998

Sec. 256.  Transportation - public assistance grant program

                   Grants                                                           200,000

               Source of funds                                                               

                   Federal funds                                                200,000

Sec. 257.  Transportation board

                   Personal services                                             74,976

                   Operating expenses                                         12,820

                        Total                                                          87,796

               Source of funds                                                               

                   Transportation fund                                         87,796

Sec. 258.  Total transportation                                    420,322,516

               Source of funds                                                               

                   Transportation fund                                192,717,610

                   Local match                                               2,958,903

                   Federal funds                                         204,264,381

                   Internal service funds                                14,611,622


                   Interdepartmental transfer                           5,770,000

                        Total                                                 420,322,516

Sec. 259.  Debt service

                   Debt service                                             69,420,026

               Source of funds                                                               

                   General fund                                             64,929,281

                   Transportation fund                                    1,994,895

                   Special funds                                              2,495,850

                        Total                                                   69,420,026

Sec. 260.  Total debt service                                        69,420,026

               Source of funds                                                               

                   General fund                                             64,929,281

                   Transportation fund                                    1,994,895

                   Special funds                                              2,495,850

                        Total                                                   69,420,026

Sec. 261.  RELATIONSHIP TO EXISTING LAWS

(a)  Except as specifically provided, this act shall not be construed in any way to negate or impair the full force and effect of existing laws.

Sec. 262.  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. 263.  FEDERAL FUNDS

(a)  In fiscal year 2008 the governor, with the approval of the general assembly 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 2008, federal funds available to the state of Vermont and designated as federal in this and other acts of the 2007 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 intends 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. 264.  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. 265.  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 2008 except for new positions authorized by the 2007 session.  Limited service positions approved pursuant to 32 V.S.A. § 5 shall not be subject to this restriction.

Sec. 266.  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 $314,503 is appropriated from the property valuation and review administration special fund to the department of taxes for administration of the use tax reimbursement program.  Notwithstanding 32 V.S.A. § 9610(c), amounts above $314,503 from the property transfer tax that are deposited into the property valuation and review administration special fund shall be transferred into the general fund.

(2)  The sum of $14,383,258 is appropriated from the Vermont housing and conservation trust fund to the Vermont housing and conservation trust board. Notwithstanding 10 V.S.A. § 312, amounts above $14,383,258 from the property transfer tax that are deposited into the Vermont housing and conservation trust fund shall be transferred into the general fund.

(3)  The sum of $4,302,105 is appropriated from the municipal and regional planning fund. Notwithstanding 24 V.S.A. § 4306(a), amounts above $4,302,105 from the property transfer tax that are deposited into the municipal and regional planning fund shall be transferred into the general fund.  The $4,302,105 shall be allocated as follows:

(A)  $3,011,473 for disbursement to regional planning commissions in a manner consistent with 24 V.S.A. § 4306(b);

(B)  $860,421 for disbursement to municipalities in a manner consistent with 24 V.S.A. § 4306(b);

(C)  $430,210 to the Vermont center for geographic information.

(D)  In fiscal year 2009, the appropriations in this subsection shall increase by at least 4.5 percent. 

(E)  To the extent that the July, 2007 fiscal year 2008 general fund revenue forecast exceeds $1,155,700,000, enabling the appropriation in Sec. 269 of this act, any of this excess attributable to forecast property transfer tax revenues above $34,800,000, not to exceed $2,000,000, shall be deposited into the Vermont housing and conservation trust fund and appropriated to the Vermont housing and conservation board. 

Sec. 267.  REVENUE COMMITTEE

(a)  A committee is established to review management of the various revenues paid to the judiciary, the department of corrections, the department of motor vehicles, the department of labor, the office of child support, and the office of the secretary of state.  The committee shall be comprised of four members.  The commissioner of taxes, the commissioner of finance and management, and the state treasurer or their designees shall be permanent members.  The fourth member shall be a designee from the entity currently managing the revenue stream under review.  The committee shall systematically review each revenue stream to determine whether its management should remain substantially as is, be transferred to the treasurer’s lockbox services contract, or be transferred to the tax department.  The current administrator of the revenue stream, the lockbox service provider, and the tax department shall each provide the committee with a proposal to manage the revenue stream under review.  The proposals shall be evaluated in accordance with measures of effectiveness established by the committee in advance of receipt of any proposals.  It is anticipated that this review process will occur over the three years following enactment of this section and that where changes in the management of a particular revenue stream are deemed appropriate, the committee shall propose any legislation necessary to accomplish such change in the current or following legislative session.

(b)  The committee shall also identify collection tools currently used with respect to receivables related to the various revenue streams reviewed and develop a relational matrix that profiles optimal use of these tools with respect to the receivables.  The committee will make a recommendation to the legislature with respect to how these tools will be applied and whether the collection of receivables should be centralized in the tax department.

(c)  The revenue committee shall report to the joint fiscal committee at the September joint fiscal committee meeting in 2007, 2008, and 2009.  Said report shall include possible proposals for the upcoming session, potential financial impacts of proposals, and the work plan for the committee over the following twelve months. 

Sec. 268.  32 V.S.A. § 305a is amended to read:

§ 305a.  Official state revenue estimate

(a)  On or about January 15 and on or about again by July 15 31 of each year, and at such other times as the emergency board or the governor deems proper, the joint fiscal office and the secretary of administration shall provide to the emergency board their respective estimates of state revenues in the general, transportation, education, Catamount, state health care resources, and Global Commitment funds.  The January revenue estimate shall be for the current and next two succeeding fiscal years, and the July revenue estimate shall be for the current and immediately succeeding fiscal years.  Federal fund estimates shall be provided at the same times for the current fiscal year.

* * *

Sec. 269.  FISCAL YEAR 2008 CONTINGENT APPROPRIATIONS

(a)  To the extent that the official fiscal year 2008 revenue forecast for the available general fund adopted by the emergency board at its July 2007 meeting exceeds $1,152,700,000, up to $3,000,000 is appropriated to the department of corrections for correctional services as an additional base fiscal year 2008 appropriation.

Sec. 270.  [DELETED]


Sec. 271.  19 V.S.A. § 11a is amended to read:

§ 1a.  Transportation funds appropriated for support of government

The maximum amount of transportation funds that may be appropriated for the support of government, other than for the agency of transportation, the transportation board, transportation pay act funds, construction of transportation capital facilities used by the agency of transportation, and transportation debt service shall not exceed $35,568,338 $35,007,219.

Sec. 272.  [DELETED]

Sec. 273.  Sec. 114 of No. 71 of the Acts of 2005 is amended to read:

Sec. 114.  HUMAN SERVICES CASELOAD RESERVE TRANSFER/LOAN

(a)  From the human services caseload reserve, $1,300,000 shall be transferred to the general fund to offset caseload and transition expenditures for services at the Vermont state hospital. The secretary of administration and the secretary of human services shall ensure that these funds are repaid to the caseload reserve on or before July 1, 2008 2009.

Sec. 274.  FY 2008 GENERAL FUND ONE-TIME APPROPRIATIONS

(a)   In fiscal year 2008, the following amounts are appropriated from the general fund:

(1)   $400,000 to the department of tourism and marketing as follows: $50,000 for expenses related to transportation of a Vermont holiday tree to the nation’s capital; $250,000 for general marketing activities and $100,000 for the Lake Champlain quadricentennial commission. 

(2)  $337,000 to the department of economic development as follows:  $75,000 for additional regional development corporation grants; $12,000 for the international trade commission; $150,000 for the commission on the future of economic development; $60,000 for the sustainable jobs fund; and $40,000 for the Council on Rural Development.

(3)  $75,000 to the department of housing and community affairs for grants to communities related to ancient roads and unidentified corridors requirements.

(4)  $25,000 to the agency of human services global commitment fund to provide $60,000 in global commitment funds to the department of disabilities, aging, and independent living for a care-giver registry.

(5)  $35,000 to the department for children and families - office of economic opportunity for the micro business program.

(6)  $460,000 to the agency of natural resources as follows:  $350,000 to the department of environmental conservation to develop an electronic permitting capacity beginning with wastewater on-site permits, underground storage tank permit renewals, and the forests, parks, and recreation use value appraisal program; $60,000 for the Vermont youth conservation corps of which $10,000 is for the shortfall due to the cemetery maintenance contract from fiscal year 2007; and $50,000 to the department of fish and wildlife for non motorized boat access at state owned water access areas.

(7)  $7,000,000 to the state teachers’ retirement system.

(8)  $400,000 to the department of education to transfer to the department of corrections for the special education program.

(9)  $100,000 to the Vermont state colleges to be reserved for use as the state’s fiscal year 2008 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 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 upon 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, 2008, 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.

(10)  $2,467,685 for fiscal year 2008 pay act.

(11)  $25,000 to the military department – veterans’ affairs for the Vermont Disabled American Veteran transportation network toward the purchase of a van.

(12)  $50,000 to the legislative council for the current use tax study required by Sec. 293a of this act.

(13)  $43,000 to the states attorneys for special investigation units.

(14)  $75,000 to the legislature for funding the international roll call project.


Sec. 275.  32 V.S.A. § 308c is amended to read:

§ 308c.  General fund and transportation fund surplus reserves

(a)  There is hereby created within the general fund a general fund surplus reserve. After satisfying the requirements of section 308 of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year general fund surplus shall be reserved in the general fund surplus reserve. Monies from this reserve shall not be expended except by specific available for appropriation of by the general assembly.

(b)  There is hereby created within the transportation fund a transportation fund surplus reserve. After satisfying the requirements of section 308a of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year transportation fund surplus shall be reserved in the transportation fund surplus reserve.  Monies from this reserve shall not be expended except by specific available for appropriation of by the general assembly.

* * *

Sec. 276.  [DELETED] 

Sec. 277.  FISCAL YEAR 2007 GENERAL FUND BALANCE

(a)  At the close of fiscal year 2007, the fiscal year 2007 unreserved and undesignated general fund balance on a budgetary basis, as determined by the commissioner of finance and management on July 31, 2007, shall to the extent funds are available:

     (1)  First, be reserved in the general fund budget stabilization reserve, established in 32 V.S.A. § 308, to the extent necessary to attain its statutory maximum.

(2)  Second, $10,516,405 shall be reserved in the general fund surplus reserve established in 32 V.S.A. § 308c (a).

(3)  Third, $7,064,000 shall be transferred to the education fund.

(4)  Fourth, $1,806,000 shall be transferred to the department of buildings and general services facilities operation fund for the costs of Bennington state office building.

(5)  Fifth, $725,000 is appropriated to the department of tourism and marketing as follows:  $125,000 for general marketing activities; $100,000 for cooperative marketing, and $500,000 for general promotion activities.

(6)  Sixth, $500,000 is appropriated to the agency of commerce and community development for a grant to Northern Enterprises, Inc. (North-Link) to be used to construct infrastructure that support provision of broadband or cellular services in areas of the state now unserved.  Prior to any such grant the agency shall require a submission of an expenditure and business plan with benchmarks and measurable outcomes to evaluate the activities funded.  It is further the intention of the general assembly to appropriate the amount of $500,000 in each of fiscal years 2009 and 2010 for further construction of the North-Link project.

(7)  Seventh, $520,000 is appropriated to the department for  children and families as follows:  $180,000 for mentoring programs; $75,000 for teen centers; $100,000 for post-adoption services; $39,000 for the “learning together” program; $15,000 for homeless and runaway youth services; $5,000 for “kids on the block”; $6,000 for the kid safe collaborative; and $100,000 for department field office flexible funds. 

(8)  Eighth, $130,000 is appropriated to the department of health for a grant to maple leaf farm.

(9)  Ninth, $75,000 is appropriated to the department for children and families for the building bright futures program.

(10)  Tenth, $100,000 is appropriated to the department of corrections for electronic monitoring.

(11)  Eleventh, $335,000 is appropriated to the department of environmental conservation for groundwater mapping.

(12)  Twelfth, $820,000 is appropriated to the department of education as follows:  $500,000 for adult education and literacy; $300,000 for science assessment; and $20,000 for national academic competitions.

(13)  Thirteenth; $125,000 is appropriated to the secretary of state for 2008 election expenses.

          (14)  Fourteenth, $50,000 is appropriated to the department for children and family services – office of economic opportunity for a grant to the coalition of homeless shelters. 

(15)  Fifteenth, $2,500,000 is appropriated to the department of banking, insurance, securities and health care administration for an individual non group market supplement initiative.

(16)  Sixteenth, any remaining funds shall be deposited into the general fund surplus reserve.

Sec. 278.  [DELETED]


Sec. 279.  FUND TRANSFERS

(a)  The amount of $450,000 is transferred from the general fund to the communications and information technology internal service fund created in 22 V.S.A. § 903, and the amount of $7,000,000 shall be transferred from the general fund to the next generation initiative fund created pursuant to Sec. 2887(a) of Title 16.

(b)  In accordance with 19 V.S.A. § 13(c), the amount of $1,120,000 is transferred from the transportation fund to the central garage fund created in 19 V.S.A. § 13.

(c)  The amount of $800,000 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.

     (d)  The amount of $4,000,000 is transferred from the catamount fund to the state health care resources fund on a one-time basis in fiscal year 2008.

Sec. 280.  FISCAL YEAR 2008 TOBACCO SETTLEMENT FUND BALANCE

(a)  Notwithstanding 18 V.S.A. § 9502(b), in fiscal year 2008 the balance in the tobacco litigation settlement fund shall remain in the tobacco litigation settlement fund.

Sec. 281.  TRANSFER OF TOBACCO TRUST FUNDS

(a)  Notwithstanding 18 V.S.A. § 9502(a)(3), at the close of fiscal year 2008, the secretary of administration may transfer funds from the tobacco trust fund to the tobacco litigation settlement fund established in 32 V.S.A. § 435a, in the amount needed to bring the ending balance of the tobacco litigation settlement fund to $0.00 for fiscal year 2008, but the amount transferred may not exceed the amount withheld from the payment to Vermont by participating manufacturers due in April 2008 under the Master Tobacco Settlement Agreement.  Upon release and deposit of the withheld funds into the tobacco litigation settlement fund, an equal amount shall be returned to the tobacco trust fund.

Sec. 282.  TAX COMPUTER SYSTEM MODERNIZATION FUND

(a)  Creation of fund.

(1)  There is established the tax computer system modernization special fund to consist of:

(A)  Eighty percent of tax receipts received as a direct result of the Massachusetts-sponsored data sharing project relative to non-state resident filers; and

(B)  Eighty percent of tax receipts received as a direct result of the data sharing and comparison project between the Vermont department of labor and the department of taxes relative to entity and employee filings at both departments and/or lack thereof.

(2)  Balances in the fund shall be administered by the department of taxes and used for the exclusive purpose of funding phase 3 of the tax department’s computer system modernization project supporting: A) corporate tax; B) business income tax; C) property transfer tax; D)  fuel gross receipts tax; and E) individual use tax.  All balances in the fund at the end of any fiscal year shall be carried forward and remain part of the fund.  Interest earned by the fund shall be deposited into the fund.  This fund is established in the state treasury pursuant to subchapter 5 of chapter 7 of Title 32.

(b)  Appropriation.

(1)  There is appropriated in fiscal year 2008 from the special fund the sum of $2,400,000 to the department of taxes for the purposes described in subdivision (a)(2) of this section.

(c)  Fund to terminate.

(1)  This fund shall terminate on July 1, 2011 and any unexpended unencumbered balance in the fund shall be transferred to the general fund.

(d)  The tax commissioner shall report to the joint fiscal committee on receipts through the first four months of fiscal year 2008 at or prior to the November joint fiscal committee meeting.

Sec. 283.  22 V.S.A. § 903 is added to read:

§ 903.  Information technology internal service fund

(a)  An information technology internal service fund is created to support activities of the department of information and innovation.

(b)  An agency, department, or division or other state or nonstate entity which receives services of the department of information and innovation shall be charged for those services on a basis established by the commissioner of information and innovation with the approval of the secretary of administration.


Sec. 284.  TRANSITION

(a)  All assets and liabilities residing in the data processing revolving fund established in 29 V.S.A. § 1702 and the GOVNet internal service fund shall be transferred to the information technology internal service fund created in 22 V.S.A. § 903(a).

Sec. 285.  REPEALS; BUILDINGS AND GENERAL SERVICES

(a)  Chapter 63 of Title 29 (buildings and general services – data processing) is repealed.

(b)  29 V.S.A. § 906(d) (buildings and general services – telecommunications services) is repealed.

Sec. 286.  [DELETED]

Sec. 287.  32 V.S.A. § 133 is amended to read:

§ 133.  Duties

(a)  The board shall have authority to make any expenditures necessitated by unforeseen emergencies, and may borrow draw on the credit of the state for the same state’s general fund for that purpose.

(b)  Pursuant to section 706 of this Title, the board shall also have authority to transfer appropriations made to other agencies, and to use the transferred amounts to make expenditures necessitated by unforeseen emergencies.

(c)  In a fiscal year, the sum of the board’s expenditures under subsections (a) and (b) of this section shall not exceed two percent of the total general fund appropriation for the year of the expenditures.

Sec. 288.  20 V.S.A. § 3175 is amended to read:

§ 3175.  Emergency personnel survivors benefit expendable trust special fund

(a)  The emergency personnel survivors benefit expendable trust special fund is established in the office of the state treasurer for the purpose of the payment of claims distributed pursuant to this chapter. The trust fund shall comprise appropriations made by the general assembly and contributions or donations from any other source. All balances in the fund at the end of the fiscal year shall be carried forward. Interest earned shall remain in the fund.

* * *


Sec. 288a.  CLARIFICATION OF FISCAL YEAR 2008 ADVANCE EDUCATION PAYMENT TO MUNICIPALITIES

     (a)  Of the grant funds appropriated in Sec. 176 of this act (Education - adjusted education payments)   up to $130,000,000 education funds shall be advanced by the tax commissioner to municipalities as required by 32 V.S.A. § 6066a(a).  The amount to be advanced to each municipality shall be transferred to the school district treasurer in accordance with Sec. 290 of this act.

Sec. 289.  32 V.S.A. § 5402(c) is amended to read:                                                 

(c)  The treasurer of each municipality shall by December 1 of the year in which the tax is levied and on June 1 of the following year pay to the state treasurer for deposit in the education fund one-half of the municipality's statewide nonresidential tax and one-half of the municipality's homestead education tax, as determined under subdivision (b)(1) of this section.  The commissioner of education shall determine the municipality's net nonresidential education tax payment, and its net homestead education tax payment to the state, and payment shall be accompanied by a return prescribed by the commissioner of education.  The municipality may retain one-eighth 0.225 of one percent of the total education tax collected, only upon timely remittance of net payment to the state treasurer.  

Sec. 290.  2007 MUNICIPAL NET EDUCATION FUND PAYMENTS

     (a)  In determining net education tax payments of a municipality under sections 4011 and 4028 of Title 16 for September 10, 2007, the commissioner of education shall include in the accounting of the net amount all education funds paid to the municipality under section 6066a of Title 32 on July 1, 2007; and in determining net education tax payments of a municipality under sections 4011 and 4028 of Title 16 for December 10, 2007, the commissioner of education shall include in the accounting of the net amount all funds paid to the municipality under section 6066a of Title 32 on September 15, 2007.  The commissioner shall include any payments made to a municipality under subsection 6066a(c) after September 15, 2007, in the first accounting of a net amount thereafter.  In a manner consistent with section 426 of Title 16, the municipality shall transfer to its school district or districts or shall return to the state all education funds received by the municipality from the state under section 6066a of Title 32 within 20 days of the first date upon which taxes become due and payable or 20 days after notification by the commissioner of education, whichever is later.  The commissioner shall notify the town of the amounts due to the school district and the state.


Sec. 291.  32 V.S.A. § 6066a is amended to read:

§ 6066a.  PAYMENT DETERMINATION OF PROPERTY TAX  ADJUSTMENTS

     (a)  Annually, the commissioner shall pay determine the property tax adjustment amount determined under section 6066 of this title, related to a homestead owned by the claimant.  The payment shall be made to commissioner shall notify the municipality in which the housesite is located, for the credit to of the amount of the property tax adjustment for the claimant for homestead property tax liabilities, on July 1 for timely-filed claims and on September 15 for late claims filed by September 1.  The tax adjustment of a claimant who was assessed property tax by a town which revised the dates of its fiscal year, however, is the excess of the property tax which was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year as determined under section 6066 of this title, related to a homestead owned by the claimant.

     (b)  The commissioner shall also pay to the municipality include in the total property tax adjustment amount determined under subsection (a) of this section, for credit to the taxpayer for homestead property tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.

     (c)  Claim The commissioner shall notify the municipality of any claim and refund amounts unresolved by September 15 shall be paid to the municipality at the time of final resolution, including adjudication if any.

     (d)  For late claims, filed after April 15, the property tax adjustment amount shall be reduced by $15.00, which shall be paid by the commissioner to the municipality for the cost of issuing a new property tax bill to the claimant.

     (e)  At the time of payment notice to the municipality, the commissioner shall notify the taxpayer of the property tax adjustment amount determined under subdivision 6066(a)(1) of this title; the amount determined under subdivision 6066(a)(3) of this title; any additional adjustment amounts due the homestead owner under section 6066 of this title; the amount of income tax refund, if any, paid to the town for allocated to payment of homestead property tax liabilities; and any late-claim reduction amount.

     (f)  Property tax bills.

          (1)  For amounts paid to municipalities stated in the notice to towns on July 1, municipalities shall include on the homestead property tax bill notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due. By a majority of those voting at an annual or special meeting called for that purpose, the voters of a municipality may elect to apply the amount allocated under this chapter to current-year property taxes to the taxpayers' property tax installments in order or pro rata.

          (2)  For property tax adjustment amounts paid to for which municipalities receive notice on or after September 15, municipalities shall issue a new homestead property tax bill with notice to the taxpayer of the total a mount allocated to payment of homestead property tax liabilities and notice of the balance due.

          (3)  The payment received by the municipality from the state for credit to property tax adjustment amount determined for the taxpayer shall be credited allocated first to current-year property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No payment adjustment shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. If the payment received by the municipality property tax adjustment amount exceeds the amount allocated under this subsection, the municipality shall refund the excess to the taxpayer, without interest, within 60 days of receipt by the municipality within 20 days of the first date upon which taxes become due and payable or 20 days after notification by the commissioner of education, whichever is later.  No municipal tax-reduction incentive for early payment of taxes shall apply to any payment made to a municipality by the state amount allocated to the property tax bill under this chapter.

Sec. 292.  32 V.S.A. § 6061(15) and (16) are amended to read:

(15)  "Adjusted property tax" means the amount of education and municipal property taxes on the homestead parcel after reduction for any property tax payment adjustment under section 6066a of this chapter.

(16) "Unadjusted property tax" means the amount of education and municipal property taxes on the homestead parcel before any reduction for a property tax payment adjustment under section 6066a of this chapter.

Sec. 293.  32 V.S.A. § 6063 is amended to read:

§ 6063.  Claim as personal; escheat

The right to file a claim under this chapter is personal to the claimant and shall not survive his or her death, but the right may be exercised on behalf of a claimant by his or her legal guardian or attorney‑in‑fact.  When a claimant dies after having filed a timely claim, the reduction payment may be issued to another member of the household as determined by the commissioner.  If the claimant was the only member of the household, the claim shall be paid to the executor or administrator, but if neither is appointed within two years of the filing of the claim, the amount thereof shall escheat to the state property tax adjustment amount shall be credited to the homestead property tax liability of the claimant’s estate, as provided in section 6066a of this title.

Sec. 293a.  INDEPENDENT STUDY; USE VALUE APPRAISAL PROGRAM

(a)  Duties and powers.  The legislative council shall hire one or more consultants to conduct a thorough and independent review and analysis of the use value appraisal program.  The consultants shall have the assistance of the department of taxes, legislative council, and the joint fiscal office.

(b)  Goals; issues.  The goals of the use value appraisal program are found in 32 V.S.A. § 3751, as follows:

§ 3751.  STATEMENT OF PURPOSE

The purpose of this subchapter is to encourage and assist the maintenance of Vermont's productive agricultural and forest land; to encourage and assist in their conservation and preservation for future productive use and for the protection of natural ecological systems; to prevent the accelerated conversion of these lands to more intensive use by the pressure of property taxation at values incompatible with the productive capacity of the land; to achieve more equitable taxation for undeveloped lands; to encourage and assist in the preservation and enhancement of Vermont's scenic natural resources; and to enable the citizens of Vermont to plan its orderly growth in the face of increasing development pressures in the interests of the public health, safety and welfare.  

     (c)  The consultant shall articulate the current statutory goals of the program, and analyze whether the program is achieving those goals.  The consultant shall investigate and make findings regarding the following: 

(1)  Has the current use program achieved its statutory goals?  If not, what were the barriers to achieving any particular goal?  Are there barriers to enrollment?

(2)  Does the administration of the program meet the stated goal of protecting natural ecological systems on enrolled forest land (wetlands, riparian areas, rare forest conditions, etc.)?  If not, what changes are needed to protect these ecosystems on enrolled forest land?

(3)  How are use values determined (in answering this question, the consultant shall confer with the current use advisory board)?  Would the establishment of new categories for eligible land, addressing, for example, public access for outdoor recreation, conservation easements, protection of natural ecological systems, or other criteria, in combination with associated use values, aid in achieving the statutory goals of the program? 

(4)  What activities does the program require of listers and what changes, if any, would local officials like to see in the program?  Can computer technology reduce the administrative burden on local listers, allow landowners and consulting foresters to file documents and reports electronically, and improve monitoring and compliance? 

(5)  Is there sufficient personnel to administer the program adequately within the department of taxes and the department of forests, parks and recreation?  Is the monitoring of parcels manageable, and are the county foresters able to supervise and provide sufficient technical assistance? 

(6)  How would annual reporting by forest land owners affect the program?  Should annual reporting be reinstated?

(7)  Does the land use change tax provide an adequate disincentive for temporary enrollment of land, especially where the landowner intends to develop in the future? 

(8)  Would the addition of a "means" test for enrollment hamper or enhance, or otherwise affect, achievement of the program goals? 

     (d)  The consultant shall report to legislative council and the use value appraisal task force on the findings on or before October 1, 2007.

(e)  Use value appraisal task force.

(1)  Membership.  A use value appraisal task force is created to consist of two members of the house of representatives; two members of the senate; the director of the division of property valuation and review or designee; the secretary of the agency of natural resources or designee; the secretary of the agency of agriculture, food, and markets or designee; a member representing forestry interests; a member representing agricultural interests; a member representing land-use or conservation interests; a member representing assessors and listers; a member representing fish and wildlife interests; a member representing outdoor recreational interests; one owner of enrolled forest land or agricultural land or both; one owner of nonenrolled forest land or agricultural land or both; two members at large.  The speaker of the house and the senate president pro tempore shall appoint members of the use value appraisal task force that are not members ex officio, and the governor shall appoint the two members at large.  Members shall be appointed by June 1, 2007.

(2)  Powers and duties.  The use value appraisal task force shall determine whether the program needs to be modified to accomplish its stated goals, and whether the goals ought to be modified in light of the available resources and all the findings of the task force.  In making these determinations, the task force shall confer with the consultant during the study of the use value appraisal program; review the consultant’s written report; conduct public hearings at convenient times and in convenient places throughout the state, with sufficient notice to the public; and consult with identifiable affected and interested parties. 

(3)  The task force shall provide the house committees on agriculture, natural resources and energy, and ways and means, and the senate committees on agriculture, natural resources and energy, and finance with a copy of the consultant’s study and a report of task force recommendations and legislative proposals by January 15, 2008.

(4)  The task force shall meet no more than three times when the general assembly is not in session.  For attendance at a meeting when the general assembly is not in session, legislative members of the task force shall be entitled to per diem compensation and reimbursement of expenses as provided in 2 V.S.A. § 406(a).

Sec. 293b.  SOLID WASTE MANAGEMENT FACILITIES WORKING GROUP

     (a)  The agency of natural resources shall convene a working group, by no later than July 1, 2007, to review the statutory and regulatory requirements for solid waste management facilities in Vermont and to develop best management practices for solid waste facilities in the state.  The working group shall include: one member of the senate to be appointed by the committee on committees; one member of the house of representatives to be appointed by the speaker of the house; the secretary of natural resources or his or her designee; two representatives of solid waste management districts to be appointed by the districts; two representatives of citizens groups involved with solid waste issues to be appointed by the speaker of the house; a member of the Vermont league of cities and towns to be appointed by the league; a representative of an environmental group to be appointed by the committee on committees; two representatives of the private solid waste industry in Vermont, one a landfill owner and one a solid waste hauler, to be appointed by the secretary of natural resources; a representative from the business sector appointed by the committee on committees; and a third party consultant skilled in solid waste facility design or risk assessment to be appointed by the secretary of natural resources.  The working group shall report to the house and senate committees on natural resources and energy by January 15, 2008.  The report shall include:

          (1)  A summary of the current state law for solid waste management facility siting and certification in Vermont;

          (2)  An analysis of how and if current state law helps or hinders waste reduction in the state, including an analysis of the effectiveness of solid waste management planning and an analysis of the impact of subsidies, the policies of solid waste management districts, recycling mandates, and funding for waste reduction;

          (3)  An analysis of the effectiveness of current state and federal law for solid waste management facility siting, design, and operational certification in Vermont and any recommended changes;

          (4)  An evaluation of existing solid waste management in the state, including number of landfills serving the state, capacity of existing landfills, the current and future impacts of existing landfills, and any current excess landfill capacity or need for additional landfill capacity mindful of the time required to site, design, permit, and construct new facilities;

          (5)  An analysis of the future needs of Vermont for solid waste disposal and solid waste management facilities;

          (6)  An analysis of and recommendation regarding whether solid waste management facilities in Vermont should be subject to a certificate of need or public good process with a recommendation on how to repay the investment of public funds expended for site acquisition, facility design, and permitting of solid waste facilities already permitted or identified in an approved solid waste plan should they be subsequently ruled ineligible;

          (7)  Recommended best management practices for the siting, design, and operation of solid waste management facilities;

          (8)  An assessment of the comprehensive costs of landfills, including short- and long-term health impacts, environmental impacts, impacts on property values, and other economic impacts;

          (9)  An analysis of the costs and benefits of implementing a cradle-to-grave waste management scheme, including requiring industry or businesses to take responsibility for the solid waste produced from the packaging and sale of products;

          (10)  Recommended environmental best management practices, including:

               (A)  Policies to further promote and implement the reduction, recycling, and reuse of solid waste;

               (B)  Methods for separating waste streams;

               (C)  Policies or incentives to encourage reduced waste disposal;

               (D)  Improving and maximizing methane gas management for energy recovery;

               (E)  Reducing the impacts of solid waste production and management on climate change;

               (F)  Mitigating the impacts of solid waste transportation on town and state highway infrastructure and neighboring property owners; and

               (G)  Implementing statewide actions such as enacting landfill bans on certain material and implementing extended product responsibility for certain consumer goods.

Sec. 293c.  STATE LAW ENFORCEMENT STUDY COMMITTEE

     (a)  A state law enforcement study committee is created with the following members:  the chairs of the house and senate committees on government operations; one member of the house committee on appropriations appointed by the speaker of the house; one member of the senate committee on appropriations appointed by the committee on committees; the commissioner of public safety; the director of the Vermont state employees’ association or his or her designee; the director of the Vermont state police or his or her designee; the commissioner of fish and wildlife or his or her designee; the chief warden; the commissioner of motor vehicles or his or her designee; the director of the enforcement and safety division of the department of motor vehicles; and the commissioner of liquor control or his or her designee; and the director of the enforcement division of the department of liquor control.  The chairs of the house and senate committees on government operations shall serve as co-chairs of the committee.

     (b)  The committee shall:

          (1)  review and evaluate options for making state policing and enforcement services more effective;

          (2)  identify the various state policing and enforcement services, their respective core missions and priorities, areas of specialized training and expertise, and the operational and fiscal relationships among these services;

          (3)  file a report of recommendations by January 1, 2008;

          (4)  focus its recommendations on:  the need for a higher volume of police and enforcement services; lowering response times; reducing overtime; eliminating duplication of effort; lowering overall operating expenses; enhancing training opportunities; tightening coordination, strengthening communications, and sharing information; and enhancing the overall quality of state policing and enforcement services.

     (c)  The committee may meet up to four times.  Members of the general assembly shall be entitled to the same per diem compensation and reimbursement for necessary expenses as those provided to members of standing committees under section 406 of Title 2.

     (d)  The staff of the legislative council and the joint fiscal office shall provide professional and administrative support to the committee.

Sec. 294.  RACIALLY AND ETHNICALLY DIVERSE TEACHERS; RECRUITMENT AND RETENTION

(a)  The commissioner of education shall consult with the Vermont teacher diversity program and other interested parties to develop strategies to increase recruitment and retention of racially and ethnically diverse teachers in Vermont public schools.  On or before January 15, 2008, the commissioner shall report to the senate and house committees on education concerning the parties consulted, the strategies considered, and a plan for implementing those strategies deemed to be effective in recruiting and retaining racially and ethnically diverse teachers and this report shall include an evaluation of a student loan repayment program.

Sec. 295.  Sec. 2 of No. 52 of the Acts of 2005, as amended by Sec. 295b of No. 215 of the Acts of  2006 is further amended to read::

Sec. 2.  RESTRUCTURING PROCESS

(a)  A statewide advisory group, the natural resources reorganization committee (NRRC), is created to advise the secretary on the design of a restructured agency.  It shall consist of no more than 13 members, who shall be appointed as follows:  two members of the house appointed by the speaker of the house, two members of the senate appointed by the president pro tem; nine members appointed by the secretary of natural resources, in consultation with the speaker of the house and the president pro tem, as follows:  one representing regulated business and development interests; one representing environmental organizations; one representing fish and wildlife interests; one representing the interests of forests and parks; one representing recreational interests; one representing local government; one representing the regional planning commissions; one representing the Vermont state employees’ association; and one representing citizens’ groups.  Appointments shall be made no later than June 15, 2005, and shall be for terms of two three years.

* * *

(b)  The secretary shall engage in the following process as preliminary steps in a potential restructuring of the agency:

* * *

(3)  On or before January 15, 2007 2008, the secretary shall prepare a draft report on restructuring, provide the draft report to the NRRC for review and comments, make any appropriate revisions to the draft report, and submit a final report to the legislative committees on natural resources and energy and on government operations and to the house committee on fish, wildlife and water resources.

* * *

Sec. 296.  31 V.S.A. § 654a is amended to read:

Sec. 654a.  Multijurisdictional lottery gamE

(a)  In addition to the Tri-State Lotto Compact provided for in subchapter 2 of this chapter, and the other authority to operate lotteries contained in this chapter, the commission is authorized to negotiate and contract with a up to four multijurisdictional lottery lotteries to offer and provide a multijurisdictional lottery game, starting July 1, 2003, or as soon thereafter as practicable games.  The commission may join any multijurisdictional lottery that provides indemnification for its standing committee members, officers, directors, employees, and agents.  The commission shall adopt rules under chapter 25 of Title 3 to govern the establishment and operation of a any multijurisdictional lottery game authorized by this section.

(b)  In each fiscal year, the revenues received from the operation of a any multijurisdictional lottery game authorized by this section, after payment of prizes and costs of administration, shall be deposited in the education fund established in section 4025 of Title 16.

(c)  The provisions of subdivisions 674L.1.1A through 674L.1.1I of this title shall apply to he payment of prizes to a person other than a winner for prizes awarded under the any multijurisdictional lottery authorized by this section, except that the Vermont lottery commission shall be responsible for implementing such provisions under this section, rather than the Tri-State Lotto Commission.

Sec. 297.  Subsection A of 31 V.S.A. § 673 is amended as follows:

(A)  Statement of policy and purpose.  This compact is enacted to implement the operation of Tri-State Lotto, for the purpose of raising additional revenue for each of the party states.  Tri-State Lotto is not intended to replace any existing lottery game in the party states, but, rather, to be run in addition to these games.  Tri-State Lotto tickets will be sold in each of the party states and processed in a central area to be determined by the commission.  Fifty No less than 50 percent of the gross sales from each state will be aggregated in a common prize pool, and operating costs will be charged proportionally to the party states. The remaining revenues generated within each state will remain in that particular state.

Sec. 298.  AUTHORIZATION FOR EXPENDITURES AT POWNAL TANNERY SUPERFUND SITE

     (a)  Notwithstanding the $100,000 limitation on the expenditure of funds from the environmental contingency fund established pursuant to 10 V.S.A. Sec. 1283, the secretary of the agency of natural resources may expend funds to accomplish activities authorized under 10 V.S.A. Sec. 1283(b)(9) at the Pownal Tannery Superfund Site to accomplish the state activities agreed upon in the July, 2003 State Superfund Agreement with the U.S. Environmental Protection Agency.

Sec. 299.  EFFECTIVE DATES

(a)  This section and Secs. 5(a), 5a, 60(b), 61, 139, 170, 275, 277, 290, 293a., 293b, 295, and 298 of this act shall take effect on passage.

     (b)  Sec. 50b of this act (payment to municipalities of municipal tax portion of property tax adjustments) shall take effect January 1, 2008.

(c)  Sec. 87 shall take effect on passage and shall apply as of July 1, 2006.

(d)  Sec. 111a shall sunset on January 31, 2009.

(e)  Sec. 169 shall take effect retroactively on July 1, 2006 and begin to apply to budgets approved for the 2006–2007 academic year.

(f)  Secs. 50b, 289, 291, 292, and 293 of this act (property tax adjustment notification to towns) shall apply to fiscal years 2009 and after; and Sec. 293 shall take precedence over any other amendment to 32 V.S.A. § 6063 in any other act of the general assembly of 2007. 

*** Further Amended Fiscal Year 2007 Budget Adjustment ***

Sec. 300.  SHORT TITLE

(a)  These sections 300 through 406 shall be known as and shall be cited as the “Further Amended Budget Adjustment Act - Fiscal Year 2007.”

Sec. 301.  PURPOSE

     (a)  It is the purpose of these sections 300 through 406 to amend No. 215 of the Acts of 2006 and further amend H.547 of 2007, thereby amending the appropriation amounts for fiscal year 2007. 

Sec. 302.  Sec. 5 of No. 215 of the Acts of 2006 is amended to read:

Sec. 5.  Secretary of administration - secretary’s office

          Personal services                                          471,572                       543,510

          Operating expenses                                        43,505                         43,505

          Grants                                                         400,000                       400,000

               Total                                                       915,077                       987,015

     Source of funds

          General fund                                                915,077                       987,015

* * *

Sec. 303.  Sec. 30 of No. 215 of the Acts of 2006 is amended to read:

Sec. 30.  Buildings and general services - fee for space

          Personal services 10,529,817                   10,529,817

          Operating expenses                                 10,548,400                  16,063,035

               Total                                                  21,078,217                  26,592,852

     Source of funds

          Internal service funds                               21,078,217                  26,592,852

* * *

(b)  The department shall increase the facilities operations charges to the agency of human services in fiscal year 2007 by $2,100,000 for the costs associated with the Bennington state office building.  The department shall credit $1,450,000 of this charge from state funds transferred else where.

Sec. 304.     Sec. 37 of No. 215 of the Acts of 2006 is amended to read:

Sec. 37.  Joint fiscal committee

          Personal services                                       1,143,796                    1,174,796

          Operating expenses                                        87,831                         87,831

               Total                                                    1,231,627                    1,262,627

     Source of funds

          General fund                                             1,231,627                    1,262,627

(a)  Of the above appropriation, $16,600 shall be used to fund additional research during the 2007 session as follows:

(1)  The amount of $9,600 shall be used to study what drives the cost of education spending.  The department of education shall cooperate with and provide assistance to the joint fiscal office.

(2)  The amount of $7,000 shall be used to study the demographic changes impacting state revenues and budgets.  The department of taxes shall cooperate with and provide assistance to the joint fiscal office.

Sec. 305.     Sec. 49 of No. 215 of the Acts of 2006 is amended to read:

Sec. 49.  Payments in lieu of taxes

          Grants                                                      3,100,000                    3,300,000

     Source of funds

          General fund                                                600,000                       400,000

          Special funds                                             2,500,000                    2,900,000

               Total                                                    3,100,000                    3,300,000

* * *

Sec. 306.     Sec. 53 of No. 215 of the Acts of 2006, as amended by Sec. 2 of H.547 of 2007 is further amended to read:

Sec. 53.  Total general government                  136,909,534                142,727,107

     Source of funds

          General fund                                           54,456,101                  54,359,039

          Special funds                                             5,756,487                    6,156,487

          Tobacco fund                                                 58,000                         58,000

          Federal funds                                            2,846,298                    2,846,298

          Enterprise funds                                        2,542,778                    2,542,778

          Internal service funds                               42,738,303                  48,252,938

          Pension trust funds                                  24,439,124                  24,439,124

          Private purpose trust funds                        1,027,123                    1,027,123

          Interdepartmental transfer                          3,045,320                    3,045,320

               Total                                                136,909,534                142,727,107

Sec. 307.  Sec. 56 of No. 215 of the Acts of 2006 is amended to read:

Sec. 56.  Vermont court diversion

* * *

     (a)  Court diversion programs may use funds allocated in the appropriation above for increased wages.

Sec. 308.  Sec. 59 of No. 215 of the Acts of 2006 is amended to read:

Sec. 59.  Judiciary

          Personal services                                     25,836,112                  25,836,112

          Operating expenses                                   7,150,842                    7,150,842

          Grants                                                           70,000                         70,000

               Total                                                  33,056,954                  33,056,954

     Source of funds

          General fund                                           29,691,689                  29,691,689

          Special funds                                                782,335                       925,335

          Tobacco fund                                                 40,000                         40,000

          Federal funds                                               421,930                       421,930

          Interdepartmental transfer                          2,121,000                    1,978,000

               Total                                                  33,056,954                  33,056,954

* * *

Sec. 309.  Sec. 63 of No. 215 of the Acts of 2006 is amended to read:

Sec. 63.  Public safety – administration

* * *

     (b)  Of the funds appropriated to the department of public safety, $26,000 shall be used to make a grant to the Essex county sheriff department.  The commissioner may transfer this amount from line items in this appropriation or other department of public safety appropriations to implement this directive forthwith.

Sec. 310.  Sec. 64 of No. 215 of the Acts of 2006 is amended to read:

Sec. 64.  Public safety - homeland security

          Personal services                                       1,517,922                    1,517,922

          Operating expenses                                   4,504,102                    4,504,102

          Grants                                                    14,838,700                  14,838,700

               Total                                                  20,860,724                  20,860,724

     Source of funds

          General fund                                                435,157                       435,157

          Special funds                                                    7,400                           3,900

          Federal funds                                          20,417,717                  20,421,217

          Interdepartmental transfer                                    450                              450

               Total                                                  20,860,724                  20,860,724

* * *

Sec. 311.  Sec. 65 of No. 215 of the Acts of 2006 is amended to read:

Sec. 65.  Public safety - state police

          Personal services                                     37,651,431                  38,734,009

          Operating expenses                                   5,707,781                    7,116,763

          Grants                                                      1,635,950                    1,635,950

               Total                                                  44,995,162                  47,486,722

     Source of funds

          General fund                                             5,938,091                    8,223,651

          Transportation fund                                 31,053,847                  30,953,847

          Special funds                                             3,293,766                    3,102,246

          Federal funds                                            4,156,802                    4,654,322

          Interdepartmental transfer                             552,656                       552,656

               Total                                                  44,995,162                  47,486,722

* * *

Sec. 312.  Sec. 66 of No. 215 of the Acts of 2006 is amended to read:

Sec. 66.  Public safety - criminal justice services

          Personal services                                       5,925,379                    5,925,379

          Operating expenses                                   2,404,337                    2,404,337

          Grants                                                      2,182,500                    2,182,500

               Total                                                  10,512,216                  10,512,216

     Source of funds

          General fund                                                760,000                       811,594

          Transportation fund                                   4,323,039                    4,323,039

          Special funds                                             1,322,337                    1,322,337

          Federal funds                                            3,678,817                    3,678,817

          Interdepartmental transfer                             428,023                       376,429

               Total                                                  10,512,216                  10,512,216

Sec. 313.     Sec. 69 of No. 215 of the Acts of 2006 is amended to read:

Sec. 69.  Public safety - fire safety

          Personal services                                       3,743,689                    3,908,689

          Operating expenses                                      929,794                    1,329,794

          Grants                                                           48,000                         48,000

               Total                                                    4,721,483                    5,286,483

     Source of funds

          General fund                                                713,652                       713,652

          Special funds                                             3,738,363                    4,303,363

          Federal funds                                                 91,068                         91,068

          Interdepartmental transfer                             178,400                       178,400

               Total                                                    4,721,483                    5,286,483

* * *

Sec. 314.  Sec. 71 of No. 215 of the Acts of 2006 is amended to read:

Sec. 71.  Military - air service contract

          Personal services                                       4,015,783                    4,168,247

          Operating expenses                                      875,237                    1,133,053

               Total                                                    4,891,020                    5,301,300

     Source of funds

          General fund                                                339,579                       442,149


          Federal funds                                            4,551,441                    4,859,151

               Total                                                    4,891,020                    5,301,300

Sec. 315.  Sec. 74 of No. 215 of the Acts of 2006 is amended to read:

Sec. 74.  Military - veterans’ affairs

          Personal services                                          265,466                       307,466

          Operating expenses                                      107,315                       107,315

          Grants                                                         172,815                       172,815

               Total                                                       545,596                       587,596

     Source of funds

          General fund                                                545,596                       545,596

          Federal funds                                                                                     42,000

               Total                                                                                           587,596

* * *

Sec. 316.  Sec. 76 of No. 215 of the Acts of 2006 is amended to read:

Sec. 76.  Criminal justice training council

          Personal services                                       1,007,217                    1,007,217

          Operating expenses                                      800,611                       970,611

               Total                                                    1,807,828                    1,977,828

     Source of funds

          General fund                                             1,171,978                    1,341,978

          Special funds                                                505,452                       505,452

          Interdepartmental transfer                             130,398                       130,398

               Total                                                    1,807,828                    1,977,828

Sec. 317.  Sec. 89 of No. 215 of the Acts of 2006 is amended to read:

Sec. 89.  Secretary of state

          Personal services                                       4,040,135                    4,085,135

          Operating expenses                                   1,341,443                    1,386,443

          Grants                                                      1,200,000                    1,200,000

               Total                                                    6,581,578                    6,671,578

     Source of funds

          General fund                                                586,693                       676,693

          Special funds                                             3,919,885                    3,919,885

          Federal funds                                            2,000,000                    2,000,000

          Interdepartmental transfer                               75,000                         75,000

               Total                                                    6,581,578                    6,671,578

* * *


Sec. 318.  Sec. 93 of No. 215 of the Acts of 2006 is amended to read:

Sec. 93.  Enhanced 9-1-1 board

          Personal services                                       2,106,208                    1,683,779

          Operating expenses                                      371,986                    2,247,822

               Total                                                    2,478,194                    3,931,601

     Source of funds

          Special funds                                             2,478,194                    3,931,601

Sec. 319.  Sec. 99 of No. 215 of the Acts of 2006, as amended by Sec. 20 of H.547 of 2007 is further amended to read:

Sec. 99.  Total protection to persons

and property                                                   237,548,140                242,770,387

     Source of funds

          General fund                                           76,875,765                  79,575,489

          Transportation fund                                 35,440,855                  35,340,855

          Special funds                                           57,135,074                  59,101,461

          Tobacco fund                                               619,768                       619,768

          Global commitment funds                          1,716,181                    1,716,181

          Federal funds                                          54,096,303                  54,947,033

          Enterprise funds                                        4,469,973                    4,469,973

          Interdepartmental transfer                          7,194,221                    6,999,627

               Total                                                237,548,140                242,770,387

Sec. 320.  Sec. 100 of No. 215 of the Acts of 2006 is amended to read:

Sec. 100.     Secretary’s office

          Personal services                                       6,522,771                    6,522,771

          Operating expenses                                   2,220,100                    2,220,100

          Grants                                                      4,576,108                    4,988,852

               Total                                                  13,318,979                  13,731,723

     Source of funds

          General fund                                             3,726,910                    3,726,910

          Special funds                                                    7,517                           7,517

          Tobacco fund                                               612,021                       612,021

          Federal funds                                            4,770,606                    4,770,606

          Interdepartmental transfer                          4,201,925                    4,614,669

               Total                                                  13,318,979                  13,731,723

* * *


Sec. 321.  Sec. 101 of No. 215 of the Acts of 2006 is amended to read:

Sec. 101.  Secretary’s office-Global Commitment

          Grants                                                   792,294,238                 809,595,892

     Source of funds

          General fund                                         116,901,768                 124,205,456

          Special funds                                          12,939,662                   14,671,205

          Tobacco fund                                         19,299,711                   19,815,424

          State health care resource fund              153,832,688                 153,832,688

          Catamount fund                                                                             1,657,678

          Federal funds                                        487,041,206                 493,134,238

          Interdepartmental transfer                         2,279,203                     2,279,203

               Total                                                792,294,238                 809,595,892

* * *

(b)  In addition to the state funds appropriated in this section, a total estimated sum of $35,594,773 $33,133,325 is anticipated to be certified as state matching funds under the Global Commitment as follows:

(1)  $19,536,735 $17,075,287 certified state match available from local education agencies.  This amount combined with $27,665,633 $24,379,713 of federal funds appropriated in this section equals a total estimated expenditure of $47,202,367 $41,455,000 for eligible special education school-based Medicaid services under the Global Commitment.  An amount equal to the

actual amount of the federal matching funds for eligible special education school-based Medicaid services under global commitment shall be transferred

from the Global Commitment fund to the Medicaid reimbursement special fund created in 16 V.S.A. § 2959a.

(2)  $1,497,110 certified state match available from local education agencies for eligible services under the Global Commitment provided to students under Section 504 of the Rehabilitation Act of 1973.

(3)(2)  $7,459,137 $8,956,247 certified state match available from local education agencies for eligible services under the Global Commitment provided to students through school-based health services, including school nurses.

(4)(3)  $4,215,210 certified state match available from local education and social service agencies for eligible services provided to students in the success beyond six programs eligible persons through the children’s collaborative services program.

(5)(4)  $1,847,186 certified state match available from local designated mental health agencies for eligible mental health services provided under the Global Commitment.

(6)(5)  $1,039,395 certified state match available from local designated developmental services agencies for eligible developmental services provided under the Global Commitment.

Sec. 322.  GLOBAL COMMITMENT APPROPRIATIONS; TRANSFER; REPORT

(a)  In order to facilitate the end-of-year closeout for fiscal year 2007, the secretary of the agency of human services, with approval from the secretary of administration, may make transfers among the appropriations authorized for Medicaid and Medicaid-waiver program expenses.  At least three business days prior to any transfer, the agency shall submit a proposal of transfers to be made pursuant to this section to the joint fiscal office.  A final report on all transfers made under this section shall be made to the joint fiscal committee for review at the September 2007 meeting.  The purpose of this section is to provide the agency with limited authority to modify the appropriations to comply with the terms and conditions of the global commitment for health waiver approved by the Centers for Medicare and Medicaid Services under Section 1115 of the Social Security Act.

Sec. 323.  Sec. 105 of No. 215 of the Acts of 2006 is amended to read:

Sec. 105.     Office of Vermont health access - administration

          Personal services                                     26,611,976                  34,307,943

          Operating expenses                                   1,918,014                    1,918,014

          Grants                                                                                           1,000,000

               Total                                                  28,529,990                  37,225,957

     Source of funds

          General fund                                                                                    386,295

          Global Commitment fund                         28,167,196                  32,750,213

          Federal funds                                                                                3,726,655

          Interdepartmental transfer                             362,794                       362,794

               Total                                                  28,529,990                  37,225,957

* * *


Sec. 324.  Sec. 107 of No. 215 of the Acts of 2006 is amended to read:

Sec. 107.     Office of Vermont health access - Medicaid program - Global Commitment

          Grants                                                  389,504,923                389,025,944

     Source of funds

          Global Commitment fund                       389,504,923                389,025,944

* * *

Sec. 325.  Sec. 109 of No. 215 of the Acts of 2006 is amended to read:

Sec. 109.  Office of Vermont health access - Medicaid program – non-Global Commitment long-term care waiver

     Grants                                                       172,317 361                167,782,587

Source of funds

     General fund                                                70,960,289                  69,092,869

     Federal funds                                             101,357,071                  98,689,718

          Total                                                     172,317,361                167,782,587

Sec. 326.  Sec. 110 of No. 215 of the Acts of 2006 is amended to read:

Sec. 110.  Office of Vermont health access - Medicaid matched nonwaiver expenses

          Grants                                                    61,194,552                  63,351,422

     Source of funds

          General fund                                           24,589,781                  24,496,854

          Federal funds                                          36,604,771                  38,854,568

               Total                                                  61,194,552                  63,351,422

Sec. 327.  Sec. 111 of No. 215 of the Acts of 2006 is amended to read:

Sec. 111.  Office of Vermont health access - Medicaid program - state only

          Grants                                                     29,621,923                  27,465,572

     Source of funds

          General fund                                           28,437,916                  27,249,932

          Global Commitment fund                           1,184,007                       215,640

               Total                                                  29,621,923                  27,465,572

Sec. 328.  Sec. 115 of No. 215 of the Acts of 2006 is amended to read:

Sec. 115.     Health - administration and support

          Personal services                                       5,760,189                    5,760,189

          Operating expenses                                   2,397,801                    2,397,801

          Grants                                                         150,000                       150,000

               Total                                                    8,307,990                    8,307,990

     Source of funds

          General fund                                                114,453                       409,453

          Special funds                                                  24,525                         24,525

          Global Commitment fund                           2,547,194                    1,787,194

          State health care resource fund                     100,000                       100,000

          Federal funds                                            5,517,818                    5,982,818

          Interdepartmental transfer                                 4,000                           4,000

               Total                                                    8,307,990                    8,307,990

Sec. 329.  Sec. 115a of No. 215 of the Acts of 2006 is amended to read:

Sec. 115a.   Health - blueprint for health

          Personal services                                       2,549,049                    2,256,163

          Operating expenses                                      331,443                       331,443

          Grants                                                         366,000                       366,000

               Total                                                    3,246,492                    2,953,606

     Source of funds

          General fund                                             1,234,431                       941,545

          Global Commitment fund                           2,012,061                    2,012,061

               Total                                                    3,246,492                    2,953,606

* * *

Sec. 330.  Sec. 117 of No. 215 of the Acts of 2006 is amended to read:

Sec. 117.     Health - health protection

          Personal services                                       3,282,307                    3,282,307

          Operating expenses                                      768,200                       803,200

          Grants                                                      1,689,500                    1,721,500

               Total                                                    5,740,007                    5,807,007

     Source of funds

          General fund                                                238,513                       183,513

          Special funds                                                904,000                       939,000

          Global Commitment fund                                55,093                       142,093

          Federal funds                                            4,239,401                    4,239,401

          Interdepartmental transfer                             303,000                       303,000

               Total                                                    5,740,007                    5,807,007

Sec. 331.  Sec. 118 of No. 215 of the Acts of 2006 is amended to read:

Sec. 118.     Health - health surveillance

          Personal services                                       9,523,745                    9,523,745

          Operating expenses                                   2,845,354                    2,495,354

          Grants                                                      2,606,982                    3,568,982

               Total                                                  14,976,081                  15,588,081

     Source of funds

          General fund                                             3,601,147                    2,496,088

          Special funds                                             1,307,500                    1,707,100

          Global Commitment fund                           1,183,573                    2,451,032

          Federal funds                                            8,809,317                    8,859,317

          Permanent trust funds                                     10,000                         10,000

          Interdepartmental transfer                               64,544                         64,544

               Total                                                  14,976,081                  15,588,081

* * *

Sec. 332.  Sec. 119 of No. 215 of the Acts of 2006 is amended to read:

Sec. 119.     Health - health improvement

          Personal services                                       7,659,905                    7,907,682

          Operating expenses                                   1,051,300                    1,051,300

          Grants                                                    11,012,449                  11,101,449

               Total                                                  19,723,654                  20,060,431

     Source of funds

          General fund                                                571,675                    2,447,952

          Special funds                                                392,500                       351,500

          Tobacco fund                                            3,185,982                    2,670,269

          Global Commitment fund                           7,243,951                    7,189,489

          Federal funds                                            8,322,546                    7,394,221

          Interdepartmental transfer                                 7,000                           7,000

               Total                                                  19,723,654                  20,060,431

* * *

Sec. 333.  Sec. 120 of No. 215 of the Acts of 2006 is amended to read:

Sec. 120.     Health -  community public health

          Personal services                                     12,543,385                  12,543,385

          Operating expenses                                   2,145,389                    2,145,389

          Grants                                                    19,948,030                  20,115,801

               Total                                                  34,636,804                  34,804,575

     Source of funds

          General fund                                             2,122,308                    1,133,264

          Special funds                                             3,231,400                    3,231,400

          Global Commitment fund                         15,032,280                  16,287,359

          Federal funds                                          14,135,816                  14,037,552

          Interdepartmental transfer                             115,000                       115,000

               Total                                                  34,636,804                  34,804,575

Sec. 334.  Sec. 121 of No. 215 of the Acts of 2006 is amended to read:

Sec. 121.  Health – alcohol and drug abuse programs

     Personal services                                          9,228,703                    9,216,203

     Operating expenses                                       1,130,648                    1,130,648

     Grants                                                         20,255,145                  20,267,645

          Total                                                       30,779,496                  30,614,496

Source of funds

     General fund                                                  3,370,025                    3,294,765

     Special funds                                                    195,500                       195,500

     Tobacco fund                                                2,382,834                    2,382,834

     Global Commitment fund                              15,235,609                  15,777,640

     Federal funds                                                 9,445,528                    8,813,757

     Interdepartmental transfer                                 150,000                       150,000

          Total                                                       30,779,496                  30,614,496

* * *

     (g)  In addition to the $345,000 of funds allocated for grants to recovery centers in the above appropriation, $12,500 of funds shall be granted to the Vermont’s recovery center network.

* * *

Sec. 335.  Sec. 122 of No. 215 of the Acts of 2006 is amended to read:

Sec. 122.     Health - mental health

          Personal services                                       4,245,156                    4,465,152

          Operating expenses                                      645,735                       653,235

          Grants                                                  113,908,703                116,626,879

               Total                                                118,799,594                121,745,266

     Source of funds

          General fund                                                884,623                       705,137

          Global Commitment fund                       112,938,232                117,002,169

          Federal funds                                            4,976,739                    4,037,960

               Total                                                118,799,594                121,745,266

* * *

Sec. 336.  Sec. 123 of No. 215 of the Acts of 2006 is amended to read:

Sec. 123.     Health - Vermont state hospital

          Personal services                                     17,362,523                  17,607,967

          Operating expenses                                   1,342,956                    1,596,585

          Grants                                                             3,000                           3,000

               Total                                                  18,708,479                  19,207,552

     Source of funds

          General fund                                           18,298,479                  18,687,552

          Special funds                                                110,000                       170,000

          Federal funds                                                                                     50,000

          Interdepartmental transfer                             300,000                       300,000

               Total                                                  18,708,479                  19,207,552

Sec. 337.  Sec. 125 of No. 215 of the Acts of 2006 is amended to read:

Sec. 125.     Health - medical practice board

          Personal services                                          466,127                       574,627

          Operating expenses                                      316,700                       316,700

               Total                                                       782,827                       891,327

     Source of funds

          Special funds                                                782,827                       771,327

          Global Commitment fund                                                                  120,000

               Total                                                                                           891,327

Sec. 338.  Sec. 126 of No. 215 of the Acts of 2006, as amended by Sec. 7 of H.547 of 2007 is further amended to read:

Sec. 126.     Department for children and families - administration & support services

          Personal services                                     29,680,515                  30,512,177

          Operating expenses                                   4,947,217                    5,653,792

          Grants                                                      1,506,998                    1,884,124

               Total                                                  36,134,730                  38,050,093

     Source of funds

          General fund                                           11,066,492                  11,523,232

          Global Commitment fund                         10,642,574                  11,358,954

          Federal funds                                          13,515,108                  13,748,368

          Interdepartmental transfer                             910,556                    1,419,539

               Total                                                  36,334,730                  38,050,093

* * *

Sec. 339.  Sec. 128 of No. 215 of the Acts of 2006 is amended to read:

Sec. 128.     Department for children and families - family services

          Personal services                                     19,332,140                  19,332,140

          Operating expenses                                   2,932,379                    2,542,379

          Grants                                                    65,473,894                  61,229,368

               Total                                                  87,738,413                  83,103,887

     Source of funds

          General fund                                           26,044,388                  14,829,862

          Special funds                                             1,306,152                    1,756,152

          Tobacco fund                                                 75,000                         75,000

          Global Commitment fund                         33,968,173                  40,548,173

          Federal funds                                          26,344,700                  25,214,700

          Interdepartmental transfer                                                                 680,000

               Total                                                  87,738,413                  83,103,887

Sec. 340.  Sec. 129 of No. 215 of the Acts of 2006 is amended to read:

Sec. 129.     Department for children and families - child development

          Personal services                                       2,793,150                    2,793,150

          Operating expenses                                      762,969                       762,969

          Grants                                                    46,918,030                  47,191,980

               Total                                                  50,474,149                  50,748,099

     Source of funds

          General fund                                           20,049,881                  20,337,589

          Special funds                                             1,230,722                       978,000

          Global Commitment fund                           1,532,093                    2,469,015

          Federal funds                                          27,435,701                  26,737,743

          Interdepartmental transfer                             225,752                       225,752

               Total                                                  50,474,149                  50,748,099

Sec. 341.  Sec. 133 of No. 215 of the Acts of 2006 is amended to read:

Sec. 133.     Department for children and families - office of economic opportunity

          Personal services                                          202,462                       202,462

          Operating expenses                                        85,023                         85,023

          Grants                                                      5,129,551                    5,103,337

               Total                                                    5,417,036                    5,390,822

     Source of funds

          General fund                                                985,725                       892,771

          Special funds                                                  57,340                         57,340

          Federal funds                                            4,122,898                    4,189,638

          Interdepartmental transfer                             251,073                       251,073

               Total                                                    5,417,036                    5,390,822

* * *


Sec. 342.  Sec. 136 of No. 215 of the Acts of 2006 is amended to read:

Sec. 136.     Department for children and families - disability determination services

          Personal services                                       3,587,857                    3,587,857

          Operating expenses                                      558,389                       208,389

               Total                                                    4,146,246                    3,796,246

     Source of funds

          Federal funds                                            3,899,729                    3,549,729

          Interdepartmental transfer                             246,517                       246,517

               Total                                                    4,146,246                    3,796,246

Sec. 343.  Sec. 138 of No. 215 of the Acts of 2006 is amended to read:

Sec. 138.     Department for children and families - general assistance

          Grants                                                      4,376,259                    4,376,259

     Source of funds

          General fund                                             2,514,939                    2,854,939

          Global Commitment fund                              750,000                       410,000

          Federal funds                                            1,111,320                    1,111,320

               Total                                                    4,376,259                    4,376,259

Sec. 344.  Sec. 143 of No. 215 of the Acts of 2006 is amended to read:

Sec. 143.     Department for children and families - reach up

          Grants                                                    41,996,096                  41,306,780

     Source of funds

          General fund                                           12,808,023                  12,827,710

          Special funds                                             2,200,000                    2,200,000

          Global Commitment fund                                25,500                         27,447

          Federal funds                                          26,962,573                  26,251,623

               Total                                                  41,996,096                  41,306,780

     (a)  In fiscal year 2007, the department for children and families may provide financial assistance and support services to families through solely state funded programs in order to maintain the separate state programs and segregated funds program established in subchapter 3 of chapter 11 of Title 33 and to assist the department in complying with the requirements relating to Temporary Assistance to Needy Families contained in the Deficit Reduction Act of 2005 pending further action by the general assembly.  This section shall not be interpreted to modify the requirements for families receiving services or the programs established in subchapter 3 of chapter 11 of Title 33, but is intended to permit the department flexibility in reporting maintenance-of-effort funds.

Sec. 345.  Sec. 144 of No. 215 of the Acts of 2006 is amended to read:

Sec. 144.     Department for children and families - home heating fuel assistance/LIHEAP

          Personal services                                            20,000                         20,000

          Operating expenses                                        90,000                         90,000

          Grants                                                    10,146,117                  10,736,886

               Total                                                  10,256,117                  10,846,886

     Source of funds

          General fund                                                                                    590,769

          Special funds                                           10,256,117                  10,256,117

               Total                                                                                      10,846,886

* * *

(c)  Unexpended funds in this appropriation shall carry forward to fiscal year 2008.

Sec. 346.     Sec. 146 of No. 215 of the Acts of 2006 is amended to read:

Sec. 146.     Department for children and families - food stamp cash out

          Grants                                                      7,178,725                  11,055,733

     Source of funds

          Federal funds                                            7,178,725                  11,055,733

Sec. 347.     Sec. 150 of No. 215 of the Acts of 2006 is amended to read:

Sec. 150.     Aging and independent living - advocacy and independent living

          Grants                                                    21,632,428                  21,544,928

     Source of funds

          General fund                                           10,520,276                  10,357,776

          Special funds                                                  50,000                         50,000

          Global Commitment fund                           3,063,510                    3,063,510

          Federal funds                                            7,921,642                    7,846,642

          Interdepartmental transfer                               77,000                       227,000

               Total                                                  21,632,428                  21,544,928

* * *

Sec. 348.  Sec. 153 of No. 215 of the Acts of 2006 is amended to read:

Sec. 153.     Aging and independent living - vocational rehabilitation

          Grants                                                      5,736,907                    5,623,407

     Source of funds

          General fund                                             1,599,195                    1,485,695

          Federal funds                                            3,688,325                    3,688,325

          Interdepartmental transfer                             449,387                       449,387

               Total                                                    5,736,907                    5,623,407

Sec. 349.     Sec. 155 of No. 215 of the Acts of 2006 is amended to read:

Sec. 155.     Aging and independent living - developmental services

          Grants                                                  117,490,715                117,371,715

     Source of funds

          General fund                                                281,964                       162,964

          Special funds                                                185,463                       185,463

          Global Commitment fund                       116,698,893                116,698,893

          Federal funds                                               324,395                       324,395

               Total                                                117,490,715                117,371,715

Sec. 350.  Sec. 159 of No. 215 of the Acts of 2006 is amended to read:

Sec. 159.     Corrections - correctional services

          Personal services                                     70,894,459                  70,903,285

          Operating expenses                                 26,853,973                  28,064,307

          Grants                                                      2,064,500                    1,984,500

               Total                                                  99,812,932                100,952,092

     Source of funds

          General fund                                           94,516,613                  95,655,773

          Special funds                                                547,919                       547,919

          Tobacco fund                                                 87,500                         87,500

          Global Commitment fund                           2,750,144                    2,750,144

          Federal funds                                            1,829,710                    1,829,710

          Interdepartmental transfer                               81,046                         81,046

               Total                                                  99,812,932                100,952,092

* * *

Sec. 351.  Sec. 159a of No. 215 of the Acts of 2006 is amended to read:

Sec. 159a.   Corrections - out-of-state beds

          Operating expenses                                   8,020,247                    8,314,136

     Source of funds

          General fund                                             8,020,247                    8,314,136

Sec. 352.  Sec. 166 of No. 215 of the Acts of 2006, as amended by Sec. 9 of H.547 of 2007 is further amended to read:

Sec. 166.  Total human services                     2,336,453,159           2,364,199,280

     Source of funds

          General fund                                            488,801,860              484,632,600

          Special funds                                             55,098,746                57,469,667

          Tobacco fund                                            25,643,048                25,643,048

          Global Commitment fund                         758,016,032              775,567,996

          State health care resource fund                 153,932,688              153,932,688

          Catamount fund                                                                             1,657,678

          Federal funds                                           837,650,659              846,233,750

          Permanent trust funds                                        10,000                       10,000

          Internal service funds                                   3,322,612                  3,322,612

          Interdepartmental transfer                          13,977,514                15,729,241

               Total                                                2,336,453,159           2,364,199,280

Sec. 353.  Sec. 167 of No. 215 of the Acts of 2006 is amended to read:

Sec. 167.     Labor - programs

          Personal services                                     19,264,611                  19,264,611

          Operating expenses                                   4,136,325                    4,333,411

          Grants                                                      1,560,293                    1,560,293

               Total                                                  24,961,229                  25,158,315

     Source of funds

          General fund                                             2,119,812                    2,119,812

          Special funds                                             2,529,209                    2,529,209

          Catamount fund                                                                                197,086

          Federal funds                                          18,315,506                  18,315,506

          Interdepartmental transfer                          1,996,702                    1,996,702

               Total                                                  24,961,229                  25,158,315

Sec. 354.  Sec. 168 of No. 215 of the Acts of 2006 is amended to read:

Sec. 168.     Labor - administration

          Personal services                                       2,603,442                    2,603,442

          Operating expenses                                      697,451                       746,722

               Total                                                    3,300,893                    3,350,164

     Source of funds

          General fund                                                190,408                       190,408

          Special funds                                                377,442                       377,442

          Catamount fund                                                                                  49,271

          Federal funds                                            2,385,907                    2,385,907

          Interdepartmental transfer                             347,136                       347,136

               Total                                                    3,300,893                    3,350,164


Sec. 355  Sec. 170 of No. 215 of the Acts of 2006 is amended to read:

Sec. 170.     Total labor                                    28,272,122                  28,518,479

     Source of funds

          General fund                                             2,310,220                    2,310,220

          Special funds                                             2,916,651                    2,916,651

          Catamount fund                                                                                246,357

          Federal funds                                          20,701,413                  20,701,413

          Interdepartmental transfer                          2,343,838                    2,343,838

               Total                                                  28,272,122                  28,518,479

Sec. 356.  Sec. 172 of No. 215 of the Acts of 2006 is amended to read:

Sec. 172.     Education - education programs

          Personal services                                     13,438,400                  13,417,239

          Operating expenses                                   2,026,972                    2,026,972

          Grants                                                  112,160,397                112,160,397

               Total                                                127,625,769                127,604,608

     Source of funds

          General fund                                             7,735,593                    7,735,593

          Transportation fund                                      127,483                       127,483

          Special funds                                             2,128,058                    2,128,058

          Federal funds                                        117,452,874                117,431,713

          Interdepartmental transfer                             181,761                       181,761

               Total                                                127,625,769                127,604,608

* * *

Sec. 357.  Sec. 177 of No. 215 of the Acts of 2006 is amended to read:

Sec. 177.  Education – adjusted education payment

     Grants                                            1,018,388,625            1,017,888,625

Source of funds

     Education fund                  1,018,388,625 1,017,888,625

* * *

Sec. 358.  Sec. 180 of No. 215 of the Acts of 2006 is amended to read:

Sec. 180.  Education – small school grants

     Grants                                                           5,360,000                    5,618,935

     Source of funds

     Education fund  5,360,000                             5,618,935

          Federal funds                                              983,619               983,619

               Total                                                     3,701,017                   5,618,935

Sec. 359.  Sec. 188 of No. 215 of the Acts of 2006 is amended to read:

Sec. 188.     Tax department - property tax assistance

     Grants                                                       118,450,000                113,250,000

     Source of funds

          General fund                                             2,250,000                    2,250,000

          Education fund                                      116,200,000                111,000,000

               Total                                                118,450,000                113,250,000

Sec. 360.  Sec. 189 of No. 215 of the Acts of 2006, as amended by Sec. 11 of H.547 of 2007 is further amended to read:

Sec. 189.     Total general education and property

tax assistance                                              1,783,360,096             1,777,897,870

     Source of funds

          General fund                                         309,697,015                309,697,015

          Transportation fund                                      127,483                       127,483

          Education fund                                   1,312,422,597             1,306,981,532

          Special funds                                           18,291,045                  18,291,045

          Tobacco fund                                               995,668                       995,668

          Global Commitment fund                           1,041,775                    1,041,775

          Federal funds                                        120,051,275                120,030,114

          Pension trust funds                                  20,544,360                  20,544,360

          Interdepartmental transfer                             188,878                       188,878

               Total                                             1,783,360,096             1,777,897,870

Sec. 361.  Sec. 220 of No. 215 of the Acts of 2006 is amended to read:

Sec. 220.     Housing and community affairs

          Personal services                                       2,479,313                    2,479,313

          Operating expenses                                      347,147                       347,147

          Grants                                                      4,207,227                    4,407,227

               Total                                                    7,033,687                    7,233,687

     Source of funds

          General fund                                             1,509,648                    1,709,648

          Special funds                                             3,844,469                    3,844,469

          Federal funds                                            1,614,570                    1,614,570

          Interdepartmental transfer                               65,000                         65,000

               Total                                                    7,033,687                    7,233,687

* * *


Sec. 362.  Sec. 221 of No. 215 of the Acts of 2006 is amended to read:

Sec. 221.     Historic sites - operations

          Personal services                                          615,472                       616,591

          Operating expenses                                      284,540                       284,540

               Total                                                       900,012                       901,131

     Source of funds

          General fund                                                483,919                       514,519

          Special funds                                                372,000                       357,018

          Interdepartmental transfer                               44,093                         29,594

               Total                                                       900,012                       901,131

Sec. 363.  Sec. 225 of No. 215 of the Acts of 2006 is amended to read:

Sec. 225.     Economic development

          Personal services                                       1,936,584                    1,937,784

          Operating expenses                                      650,206                       651,806

          Grants                                                      1,675,349                    1,675,349

               Total                                                    4,262,139                    4,264,939

     Source of funds

          General fund                                             3,573,344                    3,576,144

          Special funds                                                490,325                       490,325

          Federal funds                                               198,470                       198,470

               Total                                                    4,262,139                    4,264,939

* * *

Sec. 364.  Sec. 227 of No. 215 of the Acts of 2006 is amended to read:

Sec. 227.     Tourism and marketing

          Personal services                                       1,717,814                    1,717,814

          Operating expenses                                   2,486,686                    2,261,686

          Grants                                                         142,000                       367,000

               Total                                                    4,346,500                    4,346,500

     Source of funds

          General fund                                             4,346,500                    4,346,500

Sec. 365.     Sec. 235 of No. 215 of the Acts of 2006 is amended to read:

Sec. 235.     Total commerce and community

development                                                     56,742,328                  56,946,247

     Source of funds

          General fund                                           15,276,346                  15,509,746

          Special funds                                           20,222,677                  20,207,695

          Federal funds                                          19,576,102                  19,576,102

          Enterprise funds                                           849,556                       849,556

          Interdepartmental transfer                             817,647                       803,148

               Total                                                  56,742,328                  56,946,247

Sec. 366.  Sec. 238 of No. 215 of the Acts of 2006 is amended to read:

Sec. 238.     Transportation - aviation

          Personal services                                       1,115,720                    1,115,720

          Operating expenses                                 10,074,880                    9,874,880

          Grants                                                         160,000                       160,000

               Total                                                  11,350,600                  11,150,600

     Source of funds

          Transportation fund                                   2,195,350                    1,995,350

          Federal funds                                            9,155,250                    9,155,250

               Total                                                  11,350,600                  11,150,600

Sec. 367.  Sec. 240 of No. 215 of the Acts of 2006, as amended by Sec. 14 of H.547 is further amended to read:

Sec. 240.     Transportation - program development

          Personal services                                     35,463,202                  35,463,202

          Operating expenses                               130,462,679                118,859,250

          Grants                                                    35,727,282                  35,727,282

               Total                                                201,653,163                190,049,734

     Source of funds

          Transportation fund                                 37,893,711                  34,876,382

          Local match 732,978                                   732,978

          Federal funds                                        160,626,424                152,040,324

          Interdepartmental transfer                          2,400,050                    2,400,050

               Total                                                201,653,163                190,049,734

Sec. 368.  Sec. 241 of No. 215 of the Acts of 2006 is amended to read:

Sec. 241.     Transportation - rest areas

          Personal services                                          100,000                       100,000

          Operating expenses                                   3,341,146                    3,041,146

               Total                                                    3,441,146                    3,141,146

     Source of funds

          Transportation fund                                      383,117                         83,117

          Federal funds                                            3,058,029                    3,058,029

               Total                                                    3,441,146                    3,141,146


Sec. 369.  Sec. 242 of No. 215 of the Acts of 2006 is amended to read:

Sec. 242.     Transportation - maintenance state system

          Personal services                                     32,043,294                  32,043,294

          Operating expenses                                 27,941,800                  27,941,800

          Grants                                                         368,000                       368,000

               Total                                                  60,353,094                  60,353,094

     Source of funds

          Transportation fund                                 57,446,094                  56,671,094

          Federal funds                                            2,907,000                    3,682,000

               Total                                                  60,353,094                  60,353,094

Sec. 370.  Sec. 244 of No. 215 of the Acts of 2006 is amended to read:

Sec. 244.     Transportation - rail

          Personal services                                       4,911,881                    4,911,881

          Operating expenses                                 12,466,427                  12,091,427

          Grants                                                      4,720,000                    4,720,000

               Total                                                  22,098,308                  21,723,308

     Source of funds

          Transportation fund                                   8,979,308                    8,604,308

          Federal funds                                          13,119,000                  13,119,000

               Total                                                  22,098,308                  21,723,308

Sec. 371.  Sec. 245 of No. 215 of the Acts of 2006 is amended to read:

Sec. 245.     Transportation - bridge maintenance

          Operating expenses                                   8,340,679                    7,260,679

     Source of funds

          Transportation fund                                   2,028,959                    1,748,959

          Local match 50,000                                       50,000

          Federal funds                                            6,261,720                    5,461,720

               Total                                                    8,340,679                    7,260,679

Sec. 372.  Sec. 247 of No. 215 of the Acts of 2006 is amended to read:

Sec. 247.     Transportation - central garage

          Personal services                                       3,198,783                    3,198,783

          Operating expenses                                 11,309,386                  10,759,386

               Total                                                  14,508,169                  13,958,169

     Source of funds

          Internal service funds                               14,508,169                  13,958,169

(a)  Notwithstanding 19 V.S.A. Sec. § 13( c), $1,400,000 $4,928,834 of the above appropriation is appropriated from the transportation equipment replacement account within the central garage fund for the purchase of equipment as authorized in 19 V.S.A. Sec. § 13(b).

Sec. 373.  Sec. 248 of No. 215 of the Acts of 2006 is amended to read:

Sec. 248.     Department of motor vehicles

          Personal services                                     13,580,740                  13,468,195

          Operating expenses                                   7,050,064                    7,050,064

          Grants                                                         311,300                       311,300

               Total                                                  20,942,104                  20,829,559

     Source of funds

          Transportation fund                                 19,617,251                  19,504,706

          Federal funds                                            1,324,853                    1,324,853

               Total                                                  20,942,104                  20,829,559

Sec. 374.     Sec. 250 of No. 215 of the Acts of 2006 is amended to read:

Sec. 250.     Transportation - town highway emergency fund

          Grants                                                      1,250,000                    2,461,220

     Source of funds

          Transportation fund                                   1,250,000                    2,461,220

(a)  Notwithstanding 19 V.S.A. § 306(d), repair costs incurred by the town of Athens for work on Walker Road TH6 stemming from a storm incident on June 29, 2006 is authorized for reimbursement under the eligibility rules of the town highway emergency fund program with the understanding that the town of Athens upgrade the Walker Road to Class III on the February 10, 2008 AOT map, or the money will have to be repaid by the town of Athens.

Sec. 375.  Sec. 259 of No. 215 of the Acts of 2006 is amended to read:

Sec. 259.     Transportation - discretionary spending

          Operating expenses                                   5,215,534                                  0

     Source of funds

          Transportation fund                                   3,569,924                                  0

          Federal funds                                            1,645,610                                  0

               Total                                                    5,215,534                                  0

* * *

Sec. 376.  Sec. 260 of No. 215 of the Acts of 2006, as amended by Sec. 16 of H.547 is further amended to read:


Sec. 260.     Total transportation                     454,228,007                436,002,719

     Source of funds

          General fund                                                  69,000                         69,000

          Transportation fund                               191,592,630                184,174,052

          Local match 3,044,123                             3,044,123

          Federal funds                                        242,474,035                232,217,325

          Internal service funds                               14,508,169                  13,958,169

          Interdepartmental transfer                          2,540,050                    2,540,050

               Total                                                454,228,007                436,002,719

Sec. 377.  Sec. 261 of No. 215 of the Acts of 2006 is amended to read:

Sec. 261.     Debt service

          Debt service                                            69,130,821                  69,129,965

     Source of funds

          General fund                                           64,549,851                  64,547,179

          Transportation fund                                   2,086,135                    2,087,951

          Special funds                                             2,494,835                    2,494,835

               Total                                                  69,130,821                  69,129,965

Sec. 378.  Sec. 262 of No. 215 of the Acts of 2006 is amended to read:

Sec. 262.     Total debt service                          69,130,821                  69,129,965

     Source of funds

          General fund                                           64,549,851                  64,547,179

          Transportation fund                                   2,086,135                    2,087,951

          Special funds                                             2,494,835                    2,494,835

               Total                                                  69,130,821                  69,129,965

Sec. 379.  APPROPRIATION REDUCTIONS DUE TO MEDICAL PLAN PREMIUM SAVINGS

(a)  To reflect adjustments to budgets due to medical plan premium savings, personal service appropriations are reduced by $1,743,646 in general funds and $1,249,444 in transportation funds in accordance with the attached schedule, entitled “FY 2007 Appropriation Reductions Due to Medical Plan Premium Savings.”

Sec. 380.  Sec. 17 of H.547 of 2007 is amended to read:

Sec. 17.  REESTABLISH APPROPRIATIONS DUE TO JULY 18, 2006 EMERGENCY BOARD TRANSFERS

(a)  There is hereby appropriated $4,500,000 $8,900,000 in general funds in fiscal year 2007 to corrections - correctional services, to reestablish spending authority transferred for the emergency assistance for farms program, authorized by the emergency board on July 18, 2006.

(b)  There is hereby appropriated $1,500,000 in transportation funds in fiscal year 2007 to the department of motor vehicles, to reestablish spending authority transferred to the town highway emergency fund, authorized by the emergency board on July 18, 2006.

Sec. 381.  Sec. 10(a)(2)(B) of No. 66 of the Acts of 2005 is amended to read:

(B)  From the transportation fund for the fiscal year beginning July 1, 2005, $1,248,449.00, and for the fiscal year beginning July 1, 2006, $2,405,219.00 $2,005,219.00;

Sec. 382.  FUND TRANSFERS

(a)  Notwithstanding any other provisions of law, in fiscal year 2007:

(1)  The following amounts shall be transferred to the general fund from the funds indicated:

               Interest earnings                                                                       1,250,000

62100     Abandoned property                                                                1,731,405

               Amortization of W.R. Grace                                                            9,316

               Caledonia Fair                                                                                5,000

50300     Liquor Control                                                                            663,305

21155     Secretary of State - Rulemaking Advertising Fund 102,000

21235     Home Weatherization Assistance Fund                                        400,000

21260     Act 250 Permit Fund                                                                   500,000

21747     CORR-Windsor School Special Fund                                           87,529

21812     Secretary of State - Corporations                                                    1,845

21886     Treasurer - Refunding Bond Issue                                                    9,201

21888     Treasurer - Citizens Bond                                                              24,940

21520     Treasurer’s Retirement Administration Fund                                 239,791

21993     VT Film Production Incentive                                                   1,000,000

21638     Attorney General - Fees and Reimbursements Court

               Order Special Fund                                                                     600,000

(2)  All or a portion of the unencumbered balances in the insurance regulatory and supervision fund (Fund Number 21075), the captive insurance regulatory and supervision fund (Fund Number 21085), and the securities regulatory and supervision fund (Fund Number 21080), expected to be approximately $14,029,517 shall be transferred to the general fund, provided that on or before July 1, 2007, the commissioner of banking, insurance, securities, and health care administration certifies to the joint fiscal committee that the transfer of such balances, or any smaller portion deemed proper by the commissioner, will not impair the ability of the department in fiscal year 2008 to provide thorough, competent, fair, and effective regulatory services, or maintain accreditation by the National Association of Insurance Commissioners; and that the joint fiscal committee does not reject such certification.

(3)  The administration shall recognize $500,000 vendor incentive payments as a direct application in fiscal year 2007, and the secretary of administration shall transfer $300,000 to the general fund from available federal receipt funds in the agency of human services for the costs of the Bennington state office building at the close of fiscal year 2007.

(4)  The following amount shall be transferred from the general fund to the fund indicated:

31100     General Government Projects Fund                                                 1,347

58800     Facilities Operations Fund                                                        3,778,172

(5)  The following amount shall be transferred to the transportation fund from the fund indicated:

10000     General Fund                                                                           1,500,000

(6)  Notwithstanding the amount specified in 19 V.S.A. § 13(c), the following amount shall be transferred from the transportation fund to the fund indicated:

57100     Central Garage Fund                                                                   850,000

Sec. 383.  REVERSIONS

(a)  Notwithstanding any other provisions of law, in fiscal year 2007 the following amounts shall revert to the general fund from the accounts indicated:

1105001000    GOVnet                                                                                   244

1110003000    Budget and Management                                                     94,447

1115001000    Finance & Management                                                       37,882

1120060000    Workforce Planning & Development                                      8,000

1210890504    Economic Development Study Committee 7,987

2150010000    Military - administration                                                       31,809

2200040000    Agriculture - Laboratories, agricultural

resource management and environmental stewardship                                   29,310

2230890602    Community Development Grants                                          10,000

2250000000    Public Service Board                                                                134

2270001000    Vermont Racing Commission                                                 4,332

2310010000    Lottery Commission                                                                  112

3480880401    SSCF Equip & Population Management                              15,354

5100890505    Education GF Transfer to Corrections Sp Ed                       43,103

6100010000    ANR Admin Management & Planning                                  48,000

7100000000    ACCD - Advertising Matching Grant                                     5,000

7130880402    Tourism and Marketing Initiatives 66/03                                 4,633

(b)  Notwithstanding any other provisions of law, in fiscal year 2007 the following amounts shall revert to the transportation fund from the accounts indicated:

Estimated end-of-fiscal year closing entries                                                 250,000

2130100000    State’s Attorneys                                                                 25,500

2200020000    Agriculture - Food Safety, Consumer Assurance                    2,115

5100030000    Education - Education Services                                                 449

8100001700    Transportation - Interstate Rest Areas                                274,933

8100002800    Transportation - Town Highway Bridge                              430,000

8100005400    Transportation - Bridge Maintenance Program                   150,000

(c)  Notwithstanding any other provisions of law, in fiscal year 2007 the following amounts shall revert to the education fund from the accounts indicated:

1140050000    Homestead Property Tax Assistance                                  405,076

5100050000    State-Placed Students                                                        787,432

5100090000    Education Grant                                                                 777,637

5100100000    Transportation                                                                       5,130

5100110000    Small School Grant                                                            203,566

5100120000    Capital Debt Service Aid                                                     30,147

5100190000    Essential Early Education Grant                                            65,841

5100200000    Technical Education                                                           188,753

(d)  Notwithstanding any other provisions of law, in fiscal year 2007 the following amount shall revert to the fish and wildlife fund from the account indicated:

6120170000    Land Acquisition - Other                                                     67,139

Sec. 384.  Subsection (l) of Sec. 70 of No. 93 of the Acts of 2006, as amended by Sec. 272 of No. 215 of the Acts of 2006, is added to read:

(l)  Any unreserved and undesignated general fund surplus at the end of fiscal year 2006 shall be reserved in the general fund surplus reserve established in 32 V.S.A. § 308c(a).


Sec. 385.  USE AND APPROPRIATION OF THE GENERAL FUND SURPLUS RESERVE

(a)  Funds held in the general fund surplus reserve established in 32 V.S.A. § 308c(a) are hereby made available for fiscal year 2007 appropriations in this act.

Sec. 386.  SECRETARY OF ADMINISTRATION; CARRY FORWARD AUTHORITY

(a)  Notwithstanding any other provisions of law and subject to the approval of the secretary of administration, general, transportation and education fund appropriations remaining unexpended at June 30, 2007 shall be carried forward and shall be reserved for expenditure.

Sec. 387.  33 V.S.A. § 1901d(a)(1) is amended to read:

(1)  all revenue from the tobacco products tax and 82.5 84.5 percent of the revenue from the cigarette tax levied pursuant to chapter 205 of Title 32;

Sec. 388.  33 V.S.A. § 1986(b)(2) is amended to read:

(2)  17.5 15.5 percent of the revenue from the cigarette tax levied pursuant to chapter 205 of Title 32;

Sec. 389.  TRANSITIONAL FUNDING

(a)  The balance of the $30,000 general fund appropriation to the Vermont economic progress council for planning activities in Sec. 288(a)(5)(P) of No. 122 of the Acts of 2004, may be used by the Vermont economic progress council for implementation of the Vermont employment growth incentive and tax increment financing programs as defined in No. 184 of the Acts of 2006.

Sec. 390.  EXEMPTIONS FROM BUDGET STABILIZATION RESERVES

(a)  The $11,000,000 in general funds appropriated in Sec. 2 of No. 91 of the Acts of 2006 (amending Sec. 3 of No. 84 of the Acts of 2006) is exempt from the fiscal year 2006 general fund appropriation total used to calculate the five percent budget stabilization requirement for fiscal year 2007 in 32 V.S.A. § 308.

(b)(1)  Transportation fund amounts totaling $5,801,347, reverted under the secretary of administration’s carry forward authority in Sec. 69 of No. 93 of the Acts of 2006, are exempt from the fiscal year 2006 transportation fund appropriation total used to calculate the five percent budget stabilization requirement for fiscal year 2007 in 32 V.S.A. § 308a.

(2)  The fiscal year  2007 agency of transportation fund reversions in the REVERSIONS section of this act totaling $854,933, based on carry forward spending authority from fiscal year 2006, are exempt from the fiscal year 2006 transportation fund appropriation total used to calculate the five percent budget stabilization requirement for fiscal year 2007 in 32 V.S.A. § 308a.

(c)  The funds appropriated in Sec. 5 of H.213 of 2007 are exempt from the fiscal year 2007 general fund appropriation total used to calculate the five percent budget stabilization requirement for fiscal year 2008 in 32 V.S.A. § 308.

Sec. 391.  32 V.S.A. § 182(a) is amended to read:

(a)  In addition to the duties expressly set forth elsewhere by law, the commissioner of finance and management shall:

* * *

(8)  Prepare monthly financial revenue reports for the governor, secretary of administration, and other officials and for release to the general public, and an a comprehensive annual financial report in accordance with generally accepted accounting principles which shall be distributed to the chairs of the house committees on appropriations, on institutions, and on ways and means and to the senate committees on appropriations, on finance, and on institutions on or before December 31 of each year;

(9)  Prepare Make available monthly reports of appropriations, expenditures, encumbrances and balances for all operating departments;

(10)  Maintain a standard accounting classifications chart of accounts structure pertaining to appropriation accounts, object code, and receipts , revenue, and expenditure codes;

(11)  Supervise the reconciliation of checks and bank statements;

* * *

Sec. 392.  32 V.S.A. § 588(6)(A) is amended to read:

(A)  Each special fund shall be accounted for under the direction of the commissioner, and the balance at the end of the prior fiscal year shall be reported upon in the annual financial report of the department of finance and management required by section 182(8) of this title to the joint fiscal committee on or before December 1 of each year.

Sec. 393.  32 V.S.A. § 5412(b) is amended to read:

(b)  The commissioner shall allow the municipality a credit for any reduction in education tax liability, to the extent that the municipality has paid that liability, To the extent that the municipality has paid that liability, the commissioner shall allow a credit for any reduction in education tax liability against the next ensuing year’s education tax liability or, at the request of the municipality, may refund to the municipality an amount equal to the reduction in education tax liability.

Sec. 394.  32 V.S.A. § 5(a)(3) is amended to read:

(3)  This section shall not apply to the acceptance of grants, gifts, donations, loans, or other thing things of value by the division for historic preservation for use in establishing and maintaining displays and exhibits at any historic site or restoring any historic site maintained and developed under section 723 of Title 22; nor to grants, gifts, donations, loans, or other things of value with a value of $1,000.00 $5,000.00 or less, provided that such acceptance will not incur additional expense to the state or create an ongoing requirement for funds, services, of facilities.  The secretary of administration and joint fiscal office shall be promptly notified of the source, value and purpose of any items received under this subdivision.  The joint fiscal office shall report all such items to the joint fiscal committee quarterly.

Sec. 395.  32 V.S.A. § 706 is amended to read:

§ 706.  Transfer of appropriations

Notwithstanding any authority granted elsewhere, all transfers of appropriations shall be made pursuant to this section upon the initiative of the governor, or upon the request of a secretary or commissioner.

(1)  With the approval of the governor, the secretary of administration may:

(A)  Transfer transfer balances of appropriations not to exceed $50,000.00 made under any appropriation act for the support of the government from one component of an agency, department or other unit of state government, to any component of the same agency, department, or unit;

(B)  Transfer balances of code classifications, as defined in any appropriation act for the support of government, of all departments and agencies when deemed necessary;

(C)  Advance $1,000.00 to the central surplus commodity revolving fund.

* * *

Sec. 396.  Sec. 225a(c)(1) of No. 215 of the Acts of 2006 is amended to read:

(1)  The aggregate amount and program-specific amounts of uncollected or diverted state tax revenues resulting from each type of development assistance provided in the tax statutes, as reported on the tax returns filed during the fiscal year to the department of taxes and on the expenditure report required by 32 V.S.A. § 302 312.

Sec. 397.  3 V.S.A. § 2805 is amended to read:

§ 2805  Environmental Permit Fund

There is hereby established a special fund to be known as the environmental permit fund for the purpose of implementing the programs specified under the provisions of 3 V.S.A. § 2822(i) and (j).  Revenues to the fund shall be those fees collected in accordance with 3 V.S.A. § 2822(i) and (j), and 10 V.S.A. § 2625 and gifts and appropriations.  The secretary of natural resources shall be responsible for the fund and shall account for the revenues and expenditures of the agency of natural resources.  Any fee required to be collected under 3 V.S.A. § 2822(j)(1) shall be utilized solely to cover all reasonable (direct or indirect) costs required to support the operating permit program authorized under 10 V.S.A. chapter 23.  Any fee required to be collected under 3 V.S.A. § 2822(k), (l), or (m) for air pollution control permits or registrations or motor vehicle registrations shall be utilized solely to cover all reasonable (direct or indirect) costs required to support the programs authorized under 10 V.S.A. chapter 23.  Fees collected pursuant to subsections 2822(k), (l), and (m) of this title shall be used by the secretary to fund activities related to the secretary’s hazardous or toxic contaminant monitoring programs and motor vehicle‑related programs.  The environmental permit fund shall be subject to the provisions of subchapter 5 of chapter 7 of Title 32, except that any unencumbered environmental permit fund balance in excess of those fees collected under subdivision 2822(j)(1) and subsections (k), (l), and (m) of this title, and in excess of $350,000.00 from those fees collected from environmental permit fund sources other than subdivision 2822(j)(1) and subsections (k), (l), and (m) at the close of a fiscal year shall revert to the general fund.  The environmental permit fund shall be used to cover a portion of the costs of administering the environmental court established under chapter 27 of Title 4.  The amount of $143,000.00 per fiscal year shall be disbursed for this purpose.

Sec. 398.  9 V.S.A. § 5613 is added to read:

§ 5613.  Collection and disposition of fees

(a)  The fees provided for in this chapter shall be collected by the commissioner and covered into the state treasury except as provided in subsection (b) of this section.

(b)  There is hereby created a fund to be known as the securities regulation and supervision fund.  The fund shall be used for the purpose of providing the commissioner the means to administer the provisions of this chapter, and for the support of the corporate records division and other corporate regulatory activities of the office of the secretary of state and the activities of the department of economic development.  All agent and investment adviser representative fees received pursuant to subsections 5410(b) and (d) of this title, and all examination fees and investigation expenses received pursuant to section 5614 of this title shall be transmitted to the state treasurer and credited to this fund.  All payments from the securities regulatory and supervision fund for the maintenance of staff and associated expenses, including contractual services as necessary, shall be disbursed from the state treasury only upon warrants issued by the commissioner of finance and management, after receipt of proper documentation regarding services rendered and expenses incurred. The fund shall be administered pursuant to subchapter 5 of chapter 7 of Title 32.

(c)  At the end of each fiscal year, the balance in the securities regulatory and supervision fund shall be transferred to the general fund.

(d)  The commissioner of finance and management may anticipate receipts to the securities regulatory and supervision fund and issue warrants based thereon.

Sec. 399.  Sec. 345 of No. 215 of the Acts of 2006 is amended to read:

Sec. 345.  TRANSFERS APPROPRIATIONS FROM THE INSURANCE RESERVE FUND

(a)  Notwithstanding 32 V.S.A. § 135, the following amounts are transferred appropriated from the insurance reserve fund, established in 32 V.S.A. § 134:

* * *

Sec. 400.  19 V.S.A. § 11a is amended to read:

§ 11a.  Transportation funds appropriated for support of government

The maximum amount of transportation funds that may be appropriated for the support of government, other than for the agency of transportation, the transportation board, transportation pay act funds, construction of transportation capital facilities used by the agency of transportation, and transportation debt service, for fiscal year 2006 shall not exceed 18.0 percent of the total of the prior fiscal year transportation fund appropriations and for fiscal year 2007 and thereafter shall not exceed $35,440,855.00 $35,568,338.

Sec. 401.  Sec. 64 of No. 175 of the Acts of 2006 is added to read:

Sec. 64.  EFFECTIVE DATE

(a)  This section and Sec. 52 shall take effect from passage.


Sec. 402.  Sec. 6 of No. 154 of the Acts of 2006 is amended to read:

Sec. 6.  Appropriations

(a)  In FY 2006, the amount of $600,000.00 is appropriated or transferred from the general fund to the local community implementation fund created under 10 V.S.A. § 1264c for the purpose of implementing a two-year orphan stormwater system pilot program within the agency of natural resources for the purpose of awarding municipalities grants for the costs associated with the construction, renovation, or repair of an orphan stormwater system.

(b)  In FY 2006, $50,000.00 is appropriated or transferred from the general fund to the agency of natural resources for implementation and administration of the orphan stormwater system program under 10 V.S.A. § 1264c.

Sec. 403.  Sec. 8 of No. 101 of the Acts of 2004, as amended by Sec. 58b of No. 93 of the Acts of 2006, is further amended to read:

Sec. 8.  APPROPRIATION AND ALLOCATION OF FUNDS

There is appropriated in fiscal year 2005 the amount of $5,000 from the transportation fund to the department of motor vehicles for the purposes of this act.  The department of motor vehicles is authorized to expend up to $8,000.00 in fiscal year 2006 from appropriated funds for the purposes of 23 V.S.A. § 2158.

Sec. 404.  REPEAL

(a)  3 V.S.A. § 2281(5)(special fund report requirement) is repealed.

(b)  Sec. 315 of No. 215 of the Acts of 2006 (amendment to official state revenue estimate requirement) is repealed, and Sec. 46 of No. 191 of 2006 is retained.

(c)  Chapter 77 of Title 33 (Vermont adaptive equipment revolving fund) is repealed.

Sec. 405.  3 V.S.A. § 23(f) is amended to read:

(f)  Per diem.  For attendance at a meeting when the general assembly is not in session, legislative members of the commission shall be entitled to the same per diem compensation and reimbursement for actual and necessary expenses as provided members of standing committees under 2 V.S.A. § 406.  Except for members employed by the state, members of the commission shall be entitled to the same per diem compensation as provided under 32 V.S.A. § 1010(a) and mileage reimbursement as provided under 32 V.S.A. § 1267.


Sec. 406.  EFFECTIVE DATES

(a)  This section and Secs. 300-406 shall take effect from passage.

(b)  Secs. 387, 388, and 398 shall apply as of July 1, 2006.

(c)  Sec. 394 shall sunset on June 30, 2009 and revert to prior legislative language, unless otherwise recommended by joint fiscal committee vote and subsequent legislative action.

And by renumbering all of the sections of the bill to be numerically correct (including internal references) and adjusting all of the totals to be arithmetically correct.

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

House Proposal of Amendment Concurred In

S. 173.

House proposal of amendment to Senate bill entitled:

An act relating to awarding high school diplomas to veterans of the Vietnam era.

Was taken up.

The House proposes to the Senate to amend the bill in Sec. 1, by striking out the following: from February 28, 1961 through May 7, 1975

Thereupon, the question, Shall the Senate concur in the House proposal of amendment?, was decided in the affirmative on a roll call, Yeas 29, Nays 0.

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

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Carris, Collins, Condos, Coppenrath, Cummings, Flanagan, Giard, Hartwell, Illuzzi, Kitchel, Kittell, Lyons, MacDonald, Maynard, Mazza, McCormack, Miller, Mullin, Nitka, Racine, Scott, Sears, Shumlin, Snelling, Starr, White.

Those Senators who voted in the negative were: None.

The Senator absent and not voting was: Doyle.


Proposal of Amendment; Third Reading Ordered

H. 229.

Senator Mullin, for the Committee on Health and Welfare, to which was referred House bill entitled:

An act relating to corrections and clarification to the health care affordability act of 2006 and related legislation.

Reported recommending that the Senate propose to the House to amend the bill as follows:

First:  By striking out Sec. 11 in its entirety and inserting in lieu thereof a new Sec. 11 to read as follows:

Sec. 11.  33 V.S.A. § 1974(b) and (c) are amended to read:

(b)  VHAP‑eligible premium assistance.

* * *

(3)  The agency shall determine whether it is cost‑effective to the state to enroll an individual in an approved employer‑sponsored insurance plan with the premium assistance under this subsection as compared to enrolling the individual in the Vermont health access plan. If the agency determines that it is cost‑effective, the individual shall be required to enroll in the approved employer‑sponsored plan as a condition of continued assistance under this section or coverage under the Vermont health access plan, except that dependents who are children of eligible individuals shall not be required to enroll in the premium assistance program.  Notwithstanding this requirement, an individual shall be provided benefits under the Vermont health access plan until the next open enrollment period offered by the employer or insurer.  The agency shall not consider the medical history, medical conditions, or claims history of any individual for whom cost‑effectiveness is being evaluated.

(c)  Uninsured individuals; premium assistance.

* * *

(5)  The agency shall determine whether it is cost‑effective to the state to require the individual to purchase the approved employer‑sponsored insurance plan with premium assistance under this subsection instead of Catamount Health established in section 4080f of Title 8 with assistance under subchapter 3a of chapter 19 of this title.  If providing the individual with assistance to purchase Catamount Health is more cost‑effective to the state than providing the individual with premium assistance to purchase the individual’s approved employer‑sponsored plan, the state shall provide the individual the option of purchasing Catamount Health with assistance for that product.  An individual may purchase Catamount Health and receive Catamount Health assistance until the approved employer‑sponsored plan has an open enrollment period, but the individual shall be required to enroll in the approved employer‑sponsored plan in order to continue to receive any assistance.  The agency shall not consider the medical history, medical conditions, or claims history of any individual for whom cost‑effectiveness is being evaluated.

Second:  By striking out Sec. 24 in its entirety and inserting in lieu thereof two new sections to be numbered Secs. 24 and 24a to read as follows:

Sec. 24.  22 V.S.A. § 903 is added to read:

§ 903.  HEALTH INFORMATION TECHNOLOGY

(a)  The commissioner shall facilitate the development of a statewide health information technology plan that includes the implementation of an integrated electronic health information infrastructure for the sharing of electronic health information among health care facilities, health care professionals, public and private payers, and patients.  The plan shall include standards and protocols designed to promote patient education, patient privacy, physician best practices, electronic connectivity to health care data, and, overall, a more efficient and less costly means of delivering quality health care in Vermont.

(b)  The health information technology plan shall:

(1)  support the effective, efficient, statewide use of electronic health information in patient care, health care policymaking, clinical research, health care financing, and continuous quality improvements;

(2)  educate the general public and health care professionals about the value of an electronic health infrastructure for improving patient care;

(3)  promote the use of national standards for the development of an interoperable system, which shall include provisions relating to security, privacy, data content, structures and format, vocabulary, and transmission protocols;

(4)  propose strategic investments in equipment and other infrastructure elements that will facilitate the ongoing development of a statewide infrastructure;

(5)  recommend funding mechanisms for the ongoing development and maintenance costs of a statewide health information system, including funding options and an implementation strategy for a loan and grant program;


(6)  incorporate the existing health care information technology initiatives in order to avoid incompatible systems and duplicative efforts;

(7)  integrate the information technology components of the blueprint for health established in chapter 13 of Title 18, the global clinical record, and all other Medicaid management information systems being developed by the office of Vermont health access, information technology components of the quality assurance system, the program to capitalize with loans and grants electronic medical record systems in primary care practices, and any other information technology initiatives coordinated by the secretary of administration pursuant to section 2222a of Title 3; and

(8)  address issues related to data ownership, governance, and confidentiality and security of patient information.

(c)(1)  The commissioner shall contract with the Vermont information technology leaders (VITL), a broad‑based health information technology advisory group that includes providers, payers, employers, patients, health care purchasers, information technology vendors, and other business leaders, to develop the health information technology plan, including applicable standards, protocols, and pilot programs.  In carrying out their responsibilities under this section, members of VITL shall be subject to conflict of interest policies established by the commissioner to ensure that deliberations and decisions are fair and equitable.

(2)  VITL shall be designated in the plan to operate the exclusive statewide health information exchange network for this state, notwithstanding the provisions of subsection (g) of this section requiring the recommendation of the commissioner and the approval of the general assembly before the plan can take effect.  Nothing in this section shall impede local community providers from the exchange of electronic medical data.

(d)  The following persons shall be members of VITL:

(1)  the commissioner, who shall advise the group on technology best practices and the state’s information technology policies and procedures, including the need for a functionality assessment and feasibility study related to establishing an electronic health information infrastructure under this section;

(2)  the director of the office of Vermont health access or his or her designee;

(3)  the commissioner of health or his or her designee; and

(4)  the commissioner of banking, insurance, securities, and health care administration or his or her designee.

(e)  On or before July 1, 2006, VITL shall initiate a pilot program involving at least two hospitals using existing sources of electronic health information to establish electronic data sharing for clinical decision support, pursuant to priorities and criteria established in conjunction with the health information technology advisory group.

(1)  Objectives of the pilot program shall include:

(A)  supporting patient care and improving quality of care;

(B)  enhancing productivity of health care professionals and reducing administrative costs of health care delivery and financing;

(2)  Objectives of the pilot program may include:

(A)  determining whether and how best to expand the pilot program on a statewide basis;

(B)  implementing strategies for future developments in health care technology, policy, management, governance, and finance; and

(C)  ensuring patient data confidentiality at all times.

(f)  The standards and protocols developed by VITL shall be no less stringent than the “Standards for Privacy of Individually Identifiable Health Information” established under the Health Insurance Portability and Accountability Act of 1996 and contained in 45 C.F.R., Parts 160 and 164, and any subsequent amendments.  In addition, the standards and protocols shall ensure that there are clear prohibitions against the out‑of‑state release of individually identifiable health information for purposes unrelated to treatment, payment, and health care operations, and that such information shall under no circumstances be used for marketing purposes.  The standards and protocols shall require that access to individually identifiable health information is secure and traceable by an electronic audit trail.

(g)  On or before January 1, 2007, VITL shall submit to the commission on health care reform, the secretary of administration, the commissioner, the commissioner of banking, insurance, securities, and health care administration, the director of the office of Vermont health access, the senate committee on health and welfare, and the house committee on health care a preliminary health information technology plan for establishing a statewide, integrated electronic health information infrastructure in Vermont, including specific steps for achieving the goals and objectives of this section.  A final plan shall be submitted July 1, 2007.  The plan shall include also recommendations for self‑sustainable funding for the ongoing development, maintenance, and replacement of the health information technology system.  Upon recommendation by the commissioner and approval by the general assembly, the plan shall serve as the framework within which certificate of need applications for information technology are reviewed under section 9440b of Title 18 by the commissioner.

(h)  Beginning January 1, 2006, and annually thereafter, VITL shall file a report with the commission on health care reform, the secretary of administration, the commissioner, the commissioner of banking, insurance, securities, and health care administration, the director of the office of Vermont health access, the senate committee on health and welfare, and the house committee on health care.  The report shall include an assessment of progress in implementing the provisions of this section, recommendations for additional funding and legislation required, and an analysis of the costs, benefits, and effectiveness of the pilot program authorized under subsection (e) of this section, including, to the extent these can be measured, reductions in tests needed to determine patient medications, improved patient outcomes, or reductions in administrative or other costs achieved as a result of the pilot program.  In addition, VITL shall file quarterly progress reports with the secretary of administration and the health access oversight committee and shall publish minutes of VITL meetings and any other relevant information on a public website.

(i)  VITL is authorized to seek matching funds to assist with carrying out the purposes of this section.  In addition, it may accept any and all donations, gifts, and grants of money, equipment, supplies, materials, and services from the federal or any local government, or any agency thereof, and from any person, firm, or corporation for any of its purposes and functions under this section and may receive and use the same, subject to the terms, conditions, and regulations governing such donations, gifts, and grants.

(j)  The commissioner, in consultation with VITL, may seek any waivers of federal law, of rule, or of regulation that might assist with implementation of this section.

(k)  VITL, in collaboration with the commissioner, health insurers, the Vermont Association of Hospitals & Health Systems, Inc., and other departments and agencies of state government, shall establish a loan and grant program to provide for the capitalization of electronic health records systems in blueprint communities and at primary care practices serving low income Vermonters.  Health information technology acquired under a grant or loan authorized by this section shall comply with data standards for interoperability adopted by VITL and the state health information technology plan.  An implementation plan for this loan and grant program shall be incorporated into the state health information technology plan.

Sec. 24a.  HEALTH INFORMATION TECHNOLOGY INTERIM FUND AND ELECTRONIC HEALTH RECORD PILOT PROGRAM

(a)  Purpose.  It is the intent of the general assembly that use of electronic health records for all Vermonters shall be promoted and encouraged.  The general assembly recognizes that the use and sharing of electronic health records have the potential to improve the quality of care delivered to Vermonters and, in the long term, to help contain increases in the costs of medical care.  Since many providers, especially primary care providers serving low income Vermonters, lack the capital to acquire the information technology necessary to implement electronic health records for their patients, a financing program is needed to facilitate the adoption of electronic health record use by providers. 

(b)  For the purposes of this section:

(1)  “Commissioner” shall mean the commissioner of the department of information and innovation.

(2)  “Department” shall mean the department of information and innovation.

(3)  “Pilot site” shall mean a blueprint community and primary care providers serving low income Vermonters in other communities. 

(c)  Vermont information technology leaders shall establish a health information technology fund which shall be used only during the duration of the electronic health record pilot program described in this section.  The interim fund shall be used for the purposes of:

(1)  encouraging and facilitating the development and utilization of electronic health records by pilot sites; and

(2)  promoting the sharing of electronic health records using the Vermont health information infrastructure created and managed by the Vermont health information technology leaders. 

(d)  VITL and the secretary of administration shall engage in activities designed to achieve the goal of raising at least $1 million for the interim fund created by this section and shall seek to raise these funds from a broad range of stakeholders who would benefit from electronic health records, including commercial health insurers, in relation to the number of insured and self‑insured lives each services in Vermont, the Vermont Association of Hospitals & Health Systems, Inc., self‑insured employers, other payers, and other sources.  On or before September 1, 2007, VITL and the secretary of administration shall report the results of the fundraising activities to the house committee on health care, the senate committee on health and welfare, and the commission on health care reform. 

(e)  On or before October 1, 2007, VITL shall issue a request for proposals:

(1)  to provide computer software or systems, or both, in connection with the development and implementation of a system to enable electronic health records use by pilot sites; and

(2)  for implementation‑consulting vendors to assist pilot sites with related training and system configuration support and upgrades to enable the implementation and use of electronic health record systems.  

(f)  On or before November 1, 2007, VITL shall establish criteria and award conditions for the selection of pilot sites. 

(g)  On or before January 1, 2008, VITL shall commence awarding pilot sites licenses to implement electronic health record systems, making use of the vendors selected in the process described in subsection (e) of this section. 

(h)  VITL shall include in the annual report required pursuant to section 9417 of Title 18 information concerning the interim fund and pilot program created pursuant to this section and shall additionally provide that report to the commissioner of health.  Information in the report concerning this program shall include:

(1)  an assessment of progress in implementing the provisions of this section including the acceptance of electronic health record use by providers, patients, and payers;

(2)  recommendations for additional funding and legislation required; and

(3)  an analysis of the costs, benefits, and effectiveness of the health information technology fund.   

(i)  VITL may use a portion of the interim fund for its costs in implementing and managing the electronic health record pilot program.

     Third:  In Sec. 27, 21 V.S.A. § 2002(6) by striking out the figure “25” and inserting in lieu thereof the figure 30

     Fourth:  By adding four new sections to be numbered Secs. 32, 33, 34 and 35 to read as follows:

Sec. 32.  3 V.S.A. § 2222a(c)(2) is amended to read:

(2)  The Vermont health information technology project pursuant to section 9417 of Title 18 903 of Title 22.

Sec. 33.  18 V.S.A. § 9416(a) is amended to read: 

(a)  The commissioner shall contract with the Vermont Program for Quality in Health Care, Inc. to implement and maintain a statewide quality assurance system to evaluate and improve the quality of health care services rendered by health care providers of health care facilities, including managed care organizations, to determine that health care services rendered were professionally indicated or were performed in compliance with the applicable standard of care, and that the cost of health care rendered was considered reasonable by the providers of professional health services in that area.  The commissioner shall ensure that the information technology components of the quality assurance system are incorporated into and comply with the statewide health information technology plan developed under section 9417 of this title 903 of Title 22 and any other information technology initiatives coordinated by the secretary of administration pursuant to section 2222a of Title 3.

Sec. 34.  18 V.S.A. § 9437 is amended to read: 

§ 9437.  CRITERIA

A certificate of need shall be granted if the applicant demonstrates and the commissioner finds that:

* * *

(7)  if the application is for the purchase or lease of new health care information technology, it conforms with the health information technology plan established under section 9417 of this title 903 of Title 22, upon approval of the plan by the general assembly.

Sec. 35.  18 V.S.A. § 9440b is amended to read: 

§ 9440b.  INFORMATION TECHNOLOGY; REVIEW PROCEDURES

Notwithstanding the procedures in section 9440 of this title, upon approval by the general assembly of the health information technology plan developed under section 9417 of this title 903 of Title 22, the commissioner shall establish by rule standards and expedited procedures for reviewing applications for the purchase or lease of health care information technology that otherwise would be subject to review under this subchapter.  Such applications may not be granted or approved unless they are consistent with the health information technology plan and the health resource allocation plan.  The commissioner’s rules may include a provision requiring that applications be reviewed by the health information advisory group authorized under subsection 9417(c) of this title section 903 of Title 22.  The advisory group shall make written findings and a recommendation to the commissioner in favor of or against each application.

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

     Senator Cummings, for the Committee on Finance, to which the bill was referred, reported recommending that the bill be amended as recommended by the Committee on Health and Welfare and recommend that the bill be further amended in Sec. 27, 21 V.S.A. § 2002(3) by striking out the following:  “under either a private or a public plan” and inserting in lieu thereof the following:  under either a private plan or any public plan that is not supported by state funding

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

Thereupon, the bill was read the second time by title only pursuant to Rule 43, the proposals of amendment of the Committee on Health and Welfare were collectively agreed to.

Thereupon, the proposal of amendment of the Committee on Finance was agreed to.

Thereupon third reading of the bill was ordered.

Bill Passed in Concurrence with Proposals of Amendment

House bills of the following titles were severally read the third time and passed in concurrence with proposals of amendment:

H. 78.

An act relating to reconsideration or rescission of votes in local elections.

H. 518.

An act relating to technical tax amendments.

Proposal of Amendment; Third Reading Ordered

H. 113.

Senator White, for the Committee on Health and Welfare, to which was referred House bill entitled:

An act relating to all-age access for tobacco cessation programs.

Reported recommending that the Senate propose to the House to amend the bill in Sec. 1, 18 V.S.A. § 9503(b) by striking out the following: “by Quitline” and inserting in lieu thereof the following: a quitline approved by VDH

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

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

Consideration Postponed

H. 520.

House bill entitled:

An act relating to the conservation of energy and increasing the generation of electricity within the state by use of renewable resources.

Was taken up.

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

House Proposals of Amendment Concurred In

S. 54.

House proposals of amendment to Senate bill entitled:

An act relating to motor vehicle wreckers.

Was taken up.

The House proposes to the Senate to amend the bill as follows:

      First:  In Sec. 1, by striking out 23 V.S.A. § 4(51) and inserting in lieu thereof a new subdivision (51) to read as follows:

(51)  “Single-axle tow dolly” is a vehicle towed by a self-propelled motor vehicle and designed and used exclusively to transport another self-propelled motor vehicle which shall not be required to be registered and upon which the front or rear wheels of the towed self-propelled motor vehicle are mounted, while the other wheels of the towed self-propelled motor vehicle remain in contact with the ground.  These vehicles shall not be subject to registration or titling nor shall they be treated as a separate vehicle when used in combination with another vehicle.  They shall be subject to equipment safety requirements.

     Second:  In Sec. 2, 23 V.S.A. § 4(76) by striking out the word "inoperable"

     Third:  In Sec. 2, 23 V.S.A. § 4(77) by adding a new sentence after the period to read as follows:  The towed vehicle shall not be required to be registered.

Thereupon, the question, Shall the Senate concur in the House proposal of amendment?, was decided in the affirmative.


House Proposal of Amendment Concurred In with Amendment

S. 78.

House proposal of amendment to Senate bill entitled:

An act relating to having the cost of picking up and hauling milk paid by the purchaser.

Was taken up.

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

Sec. 1.  FINDINGS

The general assembly finds:

(1)  Dairy farmers contribute $1 million a day to the economy of Vermont, provide about 7,500 farm jobs, account for $426 million annually in sales for Vermont businesses that interact with dairy farmers, and support businesses, including veterinarians, grain dealers, equipment sales, farm insurance, and other dairy suppliers;

(2)  In January of 2007, there were 1,137 dairy farms with 142,000 milking cows, generating over $2 billion annually in Vermont’s economy through production, employment, and business interaction.

(3)  Vermont's conventional dairy farmers have lost purchasing power in recent decades because the farm gate price paid for their milk has not kept pace with inflation. In 1980, the average price paid was $13.06, which, when adjusted for inflation, is equivalent to $30.95 in 2006 dollars. The average price for milk in 2006 was $12.88.

(4)  The pricing system for payments to farmers for their milk is broken; farmers continue to receive a price for their milk that is below the cost of production.

(5)  Milk and milk products are used as ingredients in thousands of foods, including baked goods, snack food, baby formula, and pet food.  Milk products are used in sit-down and fast food restaurants.  Dairy products are featured in a large proportion of the space in supermarkets.

Sec. 2.  PURPOSE

The purpose of this act is:

(1) to enable Vermont dairy farmers, processors, and retailers and their supporting infrastructure to achieve a positive return on their labor and investment. 

(2) to ensure the continuing economic vitality of the dairy industry by stabilizing the price received by farmers for their milk at a level allowing them an equitable rate of return.

(3) to achieve an over-order premium that will offset the hauling and stop charges assessed against dairy farmers.

Sec. 3.  VERMONT MILK COMMISSION ESTABLISHING AN OVER ORDER PREMIUM

(a) The Vermont milk commission shall establish by rule, pursuant to its authority under chapter 161 of Title 6, an over order premium on Class I fluid cows’ milk, consistent with accepted pricing mechanisms at the farm gate.

(b) In establishing the over-order premium, the commission shall investigate and ascertain what are reasonable costs and charges for producing, hauling and stop charges, handling, processing and any other services performed in respect to fluid dairy products.

Sec. 4.  6 V.S.A. § 2937 is added to read:

§ 2936.  ANNUAL REPORT

The commission shall report annually on its activities to the house and senate committees on agriculture on or before January 15, beginning in 2009.

Sec. 5.  EFFECTIVE DATE; RULE; REPORT

(a)  This act shall take effect on passage.

(b) The milk commission shall commence the rulemaking process necessary to implement the provisions of this act within 60 days of the effective date.

(c)  The rule shall take effect only if, by rule or legislation, New York and Pennsylvania have enacted substantially comparable provisions for their dairy farmers.

(d)  The milk commission shall report the progress being made on implementing Sec. 3(a) of this act and findings from Sec. 3(b) of this act to the house and senate committees on agriculture on or before November 1, 2007.

And after passage of the bill, the title be amended to read as follows:

     AN ACT RELATING TO THE VERMONT MILK COMMISSION ESTABLISHING AN OVER ORDER PREMIUM.

Thereupon, pending the question, Shall the Senate concur in the House proposal of amendment?, Senator Kittell moved that the Senate concur in the House proposal of amendment with an amendment as follows:

     By striking out Sec. 5 in its entirety and inserting in lieu thereof three new sections to be numbered Secs. 5, 6, and 7 to read as follows:

Sec. 5.  FINDINGS

The general assembly finds:

(1)  6 V.S.A. § 2676 dictates that the ownership of milk passes from the farmer to the buyer when the milk is transferred from a farm tank to a tank truck.

(2)  Historically the conventional dairy farmer has sold the milk from the farm wholesale, purchased necessary supplies retail, and paid shipping charges on everything.

(3)  The 2005 average price for class III milk used to make cheese was $11.88, the exact same price paid in 1980.

(4)  The impact of this legislation will likely transfer an estimated cost of $14,466,000.00 from dairy producers to processors and retailers, allowing the dairy producer to keep an additional $0.60 per hundredweight of milk production.

Sec. 6.  VERMONT MILK COMMISSION ESTABLISHMENT OF A MINIMUM PRODUCER PRICE

The Vermont milk commission shall establish by emergency rule pursuant to its authority under chapter 161 of Title 6 a minimum producer price that ensures the cost of picking up the milk and hauling the milk from the farm to the purchaser will be paid by the purchaser.  Hauling and stop charges of milk loaded at the farm shall not be charged back to the selling dairy farmer.  No additional charges shall be made, no costs may be shifted from other benefits the farmer receives to contravene the purpose of this act.  Nor shall any funds be transferred away from the farmer in paid producer differentials or any premiums the farmer would receive, but for this act.

Sec. 7.  EFFECTIVE DATE; RULE; EMERGENCY RULE

(a)  This act shall take effect on passage.

(b)  The milk commission shall commence the rulemaking process necessary to implement the provisions of Sec. 3 of this act within 60 days of the effective date. The rule required shall take effect only if, by rule or legislation, New York and Pennsylvania have enacted substantially comparable provisions for their dairy farmers.

(c)  The milk commission shall adopt within 60 days of the effective date of this act an emergency rule to implement the provisions of Sec. 6 of this act. The emergency rule shall take effect when, by rule, legislation, or other agreement, two other states in Northeast Marketing Area, Federal Order 1, have accomplished the purpose of this act or on January 1, 2009, whichever comes first.

(d)  The milk commission shall report the progress being made on implementing this act to the house and senate committees on agriculture on or before November 1, 2007.

And after passage of the bill, the title be amended to read as follows:

     AN ACT RELATING TO THE VERMONT MILK COMMISSION ESTABLISHING AN OVER ORDER PREMIUM AND A MINIMUM PRODUCER PRICE.

Which was agreed to on a roll call Yeas 30, Nays 0.

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

Roll Call

Those Senators who voted in the affirmative were: Ayer, Bartlett, Campbell, Carris, Collins, Condos, Coppenrath, Cummings, Doyle, Flanagan, Giard, Hartwell, Illuzzi, Kitchel, Kittell, Lyons, MacDonald, Maynard, Mazza, McCormack, Miller, Mullin, Nitka, Racine, Scott, Sears, Shumlin, Snelling, Starr, White.

Those Senators who voted in the negative were: None.

House Proposals of Amendment Concurred In

S. 91.

House proposals of amendment to Senate bill entitled:

An act relating to the department of banking, insurance, securities and health care administration.

Were taken up.

The House proposes to the Senate to amend the bill as follows:

First:  In Sec. 5., in the first sentence, after “directors” by striking “and approved by the commissioner” and inserting in lieu thereof “and approved by the commissioner”


Second:  After Sec. 13, by inserting four new sections to be numbered Secs. 14, 15, 16, and 17 to read as follows:

Sec. 14.  8 V.S.A. § 6001(4) is amended to read:

(4)  “Captive insurance company” means any pure captive insurance company, association captive insurance company, sponsored captive insurance company, industrial insured captive insurance company, or risk retention group, or special purpose financial captive insurance company formed or licensed under the provisions of this chapter.  For purposes of this chapter, a branch captive insurance company shall be a pure captive insurance company with respect to operations in this state, unless otherwise permitted by the commissioner.

Sec. 15.  8 V.S.A. § 6014(c) and (e) are amended to read:

(c)  The annual minimum aggregate tax to be paid by a captive insurance company calculated under subsections (a) and (b) of this section shall be $7,500.00, and the annual maximum aggregate tax shall be $200,000.00.  The maximum aggregate tax to be paid by a sponsored captive insurance company shall apply to each protected cell only and not to the sponsored captive insurance company as a whole.  If a captive insurance company is a special purpose financial captive organized and licensed under subchapter 4 of this chapter and if such captive insurance company is subject to subsection (e) of this section as a captive insurance company under common ownership and control with one or more other captive insurance companies (collectively, the “consolidated group”), the premium tax calculated with respect to the consolidated group under subsections (a) and (b) of this section shall be allocated to each member of the consolidated group in the same proportion that the premium allocable to such member bears to the total premium of all members.  The consolidated group shall pay an aggregate premium tax equal to the greater of the sum of the premium tax allocated to the members and $7,500.00; provided: 

(1)  If the premium tax allocated to a member that is a special purpose financial captive exceeds $200,000.00, the premium tax allocated to such member shall be $200,000.00; and

(2)  If the total of premium tax allocated to all members of the consolidated group that are not special purpose financial captive insurance companies exceeds $200,000.00, the total of premium tax allocated to such members shall be $200,000.00.

* * *

(e)  Two Subject to the provisions of subsection (c) of this section, two or more captive insurance companies under common ownership and control shall be taxed, as though they were a single captive insurance company.    

Sec. 16.  8 V.S.A. § 6035 is amended to read:

§ 6035.  QUALIFICATION OF SPONSORS

A sponsor of a sponsored captive insurance company shall be an insurer licensed under the laws of any state, a reinsurer authorized or approved under the laws of any state, a captive insurance company formed or licensed under this chapter, a broker‑dealer registered with the department pursuant to chapter 150 of title 9, a financial institution as defined under subdivision 11101(32) of this title, or a financial institution holding company as defined under subdivision 11101(33) of this title, including any affiliate or subsidiary of such financial institution holding company, or any other person approved by the commissioner in the exercise of his or her discretion, after finding that the approval of a person as a sponsor is not inconsistent with the purposes of this chapterA risk retention group shall not be either a sponsor or a participant of a sponsored captive insurance company.

Sec. 17.  Subchapter 4 of chapter 141 of Title 8 is added to read:

Subchapter 4.  Special Purpose Financial Captive Insurance Companies

§ 6048a.  Applicable Law

(a)  A special purpose financial captive insurance company shall be subject to the provisions of this subchapter and to the provisions of subchapter 1 of this chapter.  In the event of any conflict between the provisions of this subchapter and the provisions of subchapter 1 of this chapter, the provisions of this subchapter shall control.

(b)  A special purpose financial captive insurance company shall be subject to all applicable rules adopted pursuant to section 6015 of this chapter that are in effect as of the effective date of this subchapter and that are promulgated after the effective date of this subchapter.

(c)  The commissioner may, by order, exempt a special purpose financial captive insurance company from any provision of this chapter or from any rule adopted pursuant to section 6015 of this chapter if the commissioner determines such provision to be inappropriate based on the special purpose financial captive insurance company’s plan of operation. 

§ 6048b.  Existing Licenses

Except as otherwise determined by the commissioner, a captive insurance company that has been licensed by the commissioner pursuant to this chapter as of the effective date of this subchapter and that is engaged in or that will be engaged in an insurance securitization shall be subject to the provisions of this subchapter as a special purpose financial captive insurance company.  The commissioner may require such captive insurance company to take any action that the commissioner determines is reasonably necessary to bring such captive insurance company into compliance with the provisions of this subchapter.  The commissioner may issue an order described in section 6048d(b) with respect to such captive insurance company.

§ 6048c.  Definitions

For purposes of this subchapter:

(1)  “Ceding insurer” means an insurance company approved by the commissioner and licensed or otherwise authorized to transact the business of insurance or reinsurance in its state or country of domicile, which cedes risk to a special purpose financial captive insurance company pursuant to a reinsurance contract.

(2)  “Insolvency” and “insolvent” for purpose of applying the provisions of chapter 145 of this title to a special purpose financial captive insurance company, mean: 

(A)  That the special purpose financial captive insurance company is unable to pay its obligations when they are due, unless those obligations are the subject of a bona fide dispute; or

(B)  The special purpose financial captive insurance company has failed to meet all criteria and conditions for solvency of the special purpose financial captive insurance company established by the commissioner by rule or order.

(3)  “Insurance securitization” and “securitization” mean a transaction or a group of related transactions, which may include capital market offerings, that are effected through related risk transfer instruments and facilitating administrative agreements where all or part of the result of such transactions is used to fund the special purpose financial captive insurance company’s obligations under a reinsurance contract with a ceding insurer and by which: 

(A)  Proceeds are obtained by a special purpose financial captive insurance company, directly or indirectly, through the issuance of securities by the special purpose financial captive insurance company or any other person; or

(B)  A person provides one or more letters of credit or other assets for the benefit of the special purpose financial captive insurance company, which the commissioner authorizes the special purpose financial captive insurance company to treat as admitted assets for purposes of the special purpose financial captive insurance company’s annual report; where all or any part of such proceeds, letters of credit, or assets, as applicable, are used to fund the special purpose financial captive insurance company’s obligations under a reinsurance contract with a ceding insurer.  The terms “insurance securitization” and “securitization” do not include the issuance of a letter of credit for the benefit of the commissioner to satisfy all or part of the special purpose financial captive insurance company’s capital and surplus requirements under section 6048g of this chapter.

(4)  “Management” means the board of directors, managing board, or other individual or individuals vested with overall responsibility for the management of the affairs of the special purpose financial captive insurance company, including but not limited to officers or other agents elected or appointed to act on behalf of the special purpose financial captive insurance company.

(5)  “Organizational document” means: 

(A)  In the case of a special purpose financial captive insurance company formed as a stock corporation, the special purpose financial captive insurance company’s articles of incorporation and bylaws; and

(B)  In the case of a special purpose financial captive insurance company formed as a limited liability company, the special purpose financial captive insurance company’s articles of organization and operating agreement. 

(6)  “Security” shall have the same meaning as defined in 9 V.S.A. § 5102(28), and shall also include any form of debt obligation, equity, surplus certificate, surplus note, funding agreement, derivative, or other financial instrument that the commissioner designates, by rule or order, as a “security” for purposes of this subchapter.

(7)  “Special purpose financial captive insurance company” means a captive insurance company that has received a license from the commissioner to operate as a special purpose financial captive insurance company pursuant to this subchapter.

(8)  “Reinsurance contract” means a contract between a special purpose financial captive insurance company and a ceding insurer pursuant to which the special purpose financial captive insurance company agrees to provide reinsurance to the ceding insurer for risks associated with the ceding insurer’s insurance or reinsurance business.

(9)  “Special purpose financial captive insurance company security” means:

(A)  A security issued by a special purpose financial captive insurance company; or

(B)  A security issued by a third party, the proceeds of which are obtained directly or indirectly by a special purpose financial captive insurance company. 

(10)  “Surplus note” means an unsecured subordinated debt obligation possessing characteristics consistent with paragraph 3 of the National Association of Insurance Commissioners Statement of Statutory Accounting Principals No. 41, as amended from time to time and as modified or supplemented by rule or order of the commissioner. 

§ 6048d.  Licensing; authority

(a)  A special purpose financial captive insurance company may reinsure the risks of a ceding insurer only.  A special purpose financial captive insurance company may purchase reinsurance to cede the risks assumed under a reinsurance contract, subject to the prior approval of the commissioner.

(b)  In conjunction with the issuance of a license to a special purpose financial captive insurance company, the commissioner may issue an order that includes any provisions, terms, and conditions regarding the organization, licensing, and operation of the special purpose financial captive insurance company that are deemed appropriate by the commissioner and that are not inconsistent with the provisions of this chapter.  Except as provided in sections 6048l and 6048m of this subchapter, a license issued to a special purpose financial captive insurance company pursuant to this chapter and any order issued to a special purpose financial captive insurance company pursuant to this subsection shall not be revoked, suspended, amended, or modified other than as follows: 

(1)  The special purpose financial captive insurance company consents to such revocation, suspension, amendment, or modification; or

(2)  The commissioner makes a showing of clear and convincing evidence demonstrating that such revocation, suspension, amendment, or modification is necessary to avoid irreparable harm to the special purpose financial captive insurance company or to the ceding insurer.

(c)  To qualify for a license, a special purpose financial captive insurance company shall be subject, in addition to the requirements of subsection 6002(c) of this chapter, to the following:

(1)  The special purpose financial captive insurance company’s plan of operation shall include:

(A)  a complete description of all significant transactions, including reinsurance, reinsurance security arrangements, securitizations, related transactions or arrangements, and to the extent not included in the transactions listed in this subdivision (A), a complete description of all parties other than the special purpose financial captive insurance company and the ceding insurer that will be involved in the issuance of special purpose financial captive insurance company securities and a description of any pledge, hypothecation, or grant of a security interest in any of the special purpose financial captive insurance company’s assets and in any stock or limited liability company interest in the special purpose financial captive insurance company;

(B)  the source and form of the special purpose financial captive insurance company’s capital and surplus;

(C)  the proposed investment policy of the special purpose financial captive insurance company;

(D)  a description of the underwriting, reporting, and claims payment methods by which losses covered by the reinsurance contract are reported, accounted for, and settled; 

(E)  pro forma balance sheets and income statements illustrating one or more adverse case scenarios, as determined under criteria required by the commissioner, for the performance of the special purpose financial captive insurance company under all reinsurance contracts; and

(F)  the proposed rate and method for discounting reserves, if the special purpose financial captive insurance company is requesting authority to discount its reserves. 

(2)  The special purpose financial captive insurance company shall submit an affidavit of its president, a vice‑president, the treasurer, or the chief financial officer that includes the following statements, to the best of such person’s knowledge and belief after reasonable inquiry: 

(A)  the proposed organization and operation of the special purpose financial captive insurance company comply with all applicable provisions of this chapter;

(B)  the special purpose financial captive insurance company’s investment policy reflects and takes into account the liquidity of assets and the reasonable preservation, administration, and management of such assets with respect to the risks associated with the reinsurance contract and the insurance securitization transaction; and

(C)  the reinsurance contract and any arrangement for securing the special purpose financial captive insurance company’s obligations under such reinsurance contract, including but not limited to any agreements or other documentation to implement such arrangement, comply with the provisions of this subchapter.

(3)  The application shall include copies of all agreements and documentation described in subdivision (c)(1) unless otherwise approved by the commissioner and any other statements or documents required by the commissioner to evaluate the special purpose financial captive insurance company’s application for licensure. 

(4)  The application shall include an opinion of qualified legal counsel, in a form acceptable to the commissioner, that the offer and sale of any special purpose financial captive insurance company securities complies with all applicable registration requirements or applicable exemptions from or exceptions to such requirements of the federal securities laws and that the offer and sale of securities by the special purpose financial captive insurance company itself comply with all registration requirements or applicable exemptions from or exceptions to such requirements of the securities laws of this state.  Such opinions shall not be required as part of the application if the special purpose financial captive insurance company includes a specific statement in its plan of operation that such opinions will be provided to the commissioner in advance of the offer or sale of any special purpose financial captive insurance company securities.

(d)  The commissioner may grant a license, that shall be valid through the next April 1 following the date of initial issuance and may be renewed annually thereafter, authorizing the special purpose financial captive insurance company to transact reinsurance business as a special purpose financial captive insurance company in this state upon finding that:

(1)  The proposed plan of operation provides for a reasonable and expected successful operation;

(2)  The terms of the reinsurance contract and related transactions comply with this subchapter;

(3)  The proposed plan of operation is not hazardous to any ceding insurer; and

(4)  The insurance regulator of the state of domicile of each ceding insurer has notified the commissioner in writing or otherwise has provided assurance satisfactory to the commissioner that it has approved or has not disapproved the transaction, provided that the commissioner shall not be precluded from issuing a license to a special purpose financial captive insurance company in the event that the insurance regulator of the state of
domicile of a ceding insurer has not responded with respect to all or any part of the transaction. 

(e)  The special purpose financial captive insurance company shall provide the commissioner with a copy of a complete set of executed documentation of an insurance securitization no later than 30 days after the closing on the transactions for such securitization.

(f)  Subdivision 6002(c)(3) of this chapter shall apply to all information submitted pursuant to subsections (c) and (e) of this section and to any order issued to the special purpose financial captive insurance company pursuant to subsection (b) of this section.

§ 6048e.  Changes in plan of operation; voluntary dissolution or cessation of business

(a)  Any change in the special purpose financial captive insurance company’s plan of operation shall require prior approval of the commissioner. 

(b)  Any transaction or series of transactions shall be subject to the prior approval of the commissioner if such transaction or series of transactions:

(1)  Is undertaken to dissolve a special purpose financial captive insurance company; or

(2)  Results in the termination of all or any part of a special purpose financial captive insurance company’s business; but no prior approval of the commissioner shall be required for any transaction or series of transactions described in this subdivision (2) if such transaction or series of transactions is done in accordance with a document or agreement described in the special purpose financial captive insurance company’s plan of operation and if the commissioner is notified in advance of such transaction or series of transactions.

(c)  A special purpose financial captive insurance company shall notify the commissioner in advance of any change in the legal ownership of any security issued by the special purpose financial captive insurance company.

§ 6048f.  Formation

(a)  A special purpose financial captive insurance company may be incorporated as a stock insurer with its capital divided into shares and held by its stockholders, or it may be organized as a manager‑managed limited liability company. 

(b)  A special purpose financial captive insurance company’s organizational documents shall limit the special purpose financial captive insurance company’s authority to transact the business of insurance or reinsurance to those activities that the special purpose financial captive insurance company conducts to accomplish its purposes as expressed in this subchapter.

§ 6048g.  Minimum Capital and Surplus

A special purpose financial captive insurance company shall not be issued a license unless it shall possess and thereafter maintain unimpaired paid‑in capital and surplus of not less than $250,000.00.

§ 6048h.  Securities

(a)  A special purpose financial captive insurance company may:

(1)  subject to the prior approval of the commissioner, account for the proceeds of a surplus note issued by the special purpose financial captive insurance company as surplus; and

(2)  submit for prior approval of the commissioner periodic written requests for authorization to make payments of interest on and repayments of principal of surplus notes and other debt obligations issued by the special purpose financial captive insurance company, provided that the commissioner shall not approve such payment if the commissioner determines that such payment would jeopardize the ability of the special purpose financial captive insurance company or any other person to fulfill their respective obligations pursuant to the special purpose financial captive insurance company securitization agreements, the reinsurance contract, or any related transaction.  In lieu of approval of periodic written requests for authorization to make payments of interest on and repayments of principal of surplus notes and other debt obligations issued by the special purpose financial captive insurance company, the commissioner may approve a formula or plan, which shall be included in the special purpose financial captive insurance company’s plan of operation as amended from time to time, for payment of interest, principal, or both with respect to such surplus notes and debt obligations.

(b)  In addition to the provisions of section 6005 of this chapter, no dividend or distribution may be declared or paid by a special purpose financial captive insurance company if such dividend or distribution would jeopardize the ability of the special purpose financial captive insurance company or any other person to fulfill the company’s or other person’s respective obligations pursuant to the special purpose financial captive insurance company securitization agreements, the reinsurance contract, or any related transaction.

(c)  A special purpose financial captive insurance company security shall not be subject to regulation as an insurance or reinsurance contract.  An investor in such a security or a holder of such a security shall not be considered to be transacting the business of insurance in this state solely by reason of having an interest in the security.  The underwriter’s placement or selling agents and their partners, commissioners, officers, members, managers, employees, agents, representatives, and advisors involved in an insurance securitization by a special purpose financial captive insurance company shall not be considered to be insurance producers or brokers or to be conducting business as an insurance or reinsurance company or as an insurance agency, brokerage, intermediary, advisory, or consulting business solely by virtue of their underwriting activities in connection with such securitization.

§ 6048i.  Permitted Reinsurance

(a)  A special purpose financial captive insurance company may reinsure only the risks of a ceding insurer, pursuant to a reinsurance contract.  A special purpose financial captive insurance company may not issue a contract of insurance or a contract for assumption of risk or indemnification of loss other than such reinsurance contract. 

(b)  Unless otherwise approved in advance by the commissioner, a special purpose financial captive insurance company may not assume or retain exposure to insurance or reinsurance losses for its own account that are not funded by: 

(1)  Proceeds from a special purpose financial captive insurance company securitization or letters of credit or other assets described in subdivision 6048c(3) of this chapter;

(2)  Premium and other amounts payable by the ceding insurer to the special purpose financial captive insurance company pursuant to the reinsurance contract; and

(3)  Any return on investment of the items in subdivisions (1) and (2) of this subsection.

(c)  The reinsurance contract shall contain all provisions reasonably required or approved by the commissioner, which requirements shall take into account the laws applicable to the ceding insurer regarding the ceding insurer taking credit for the reinsurance provided under such reinsurance contract. 

(d)  A special purpose financial captive insurance company may cede risks assumed through a reinsurance contract to one or more reinsurers through the purchase of reinsurance, subject to the prior approval of the commissioner.

(e)  A special purpose financial captive insurance company may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the reinsurance contract, the insurance securitization, and this subchapter, provided such contracts and activities are included in the special purpose financial captive insurance company’s plan of operation or are otherwise approved in advance by the commissioner.  Such contracts and activities may include but are not limited to:  entering into reinsurance contracts; issuing special purpose financial captive insurance company securities; complying with the terms of these contracts or securities; entering into trust, guaranteed investment contract, swap, or other derivative, tax, administration, reimbursement, or fiscal agent transactions; or complying with trust indenture, reinsurance, or retrocession; and other agreements necessary or incidental to effect an insurance securitization in compliance with this subchapter and the special purpose financial captive insurance company’s plan of operation.

(f)  Unless otherwise approved in advance by the commissioner, a reinsurance contract shall not contain any provision for payment by the special purpose financial captive insurance company in discharge of its obligations under the reinsurance contract to any person other than the ceding insurer or any receiver of the ceding insurer.

(g)  A special purpose financial captive insurance company shall notify the commissioner immediately of any action by a ceding insurer or any other person to foreclose on or otherwise take possession of collateral provided by the special purpose financial captive insurance company to secure any obligation of the special purpose financial captive insurance company.

§ 6048j.  Disposition of Assets; Investments

(a)  The assets of a special purpose financial captive insurance company shall be preserved and administered by or on behalf of the special purpose financial captive insurance company to satisfy the liabilities and obligations of the special purpose financial captive insurance company incident to the reinsurance contract, the insurance securitization, and other related agreements.

(b)  In the special purpose financial captive insurance company securitization, the security offering memorandum or other document issued to prospective investors regarding the offer and sale of a surplus note or other security shall include a disclosure that all or part of the proceeds of such insurance securitization will be used to fund the special purpose financial captive insurance company’s obligations to the ceding insurer. 

(c)  A special purpose financial captive insurance company shall not be subject to any restriction on investments other than the following:

(1)  A special purpose financial captive insurance company shall not make a loan to any person other than as permitted under its plan of operation or as otherwise approved in advance by the commissioner; and


(2)  The commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the special purpose financial captive insurance company unless the investment is otherwise approved in its plan of operation or in an order issued to the special purpose financial captive insurance company pursuant to subsection 6048d(b) of this chapter, as either is amended from time to time.

§ 6048k.  Annual Report; Books and Records

(a)  For purposes of subsection 6007(b) of this chapter: 

(1)  The commissioner shall, by rule or order, establish the form and content of the annual report to be filed by a special purpose financial captive insurance company; and

(2)  A special purpose financial captive insurance company shall report using statutory accounting principles, unless the commissioner requires, approves, or accepts the use of generally accepted accounting principles, in either case with any appropriate or necessary modifications or adaptations thereof required or approved or accepted by the commissioner and as supplemented by additional information required by the commissioner.   

(b)  A special purpose financial captive insurance company may make written application to file its annual report on a fiscal‑year basis.  If an alternative reporting date is granted, the commissioner shall establish the due date and content of any filing required by the special purpose financial captive insurance company in addition to its annual report.

(c)  Unless otherwise approved in advance by the commissioner, a special purpose financial captive insurance company shall maintain its books, records, documents, accounts, vouchers and agreements in this state.  A special purpose financial captive insurance company shall make its books, records, documents, accounts, vouchers and agreements available for inspection by the commissioner at any time.  A special purpose financial captive insurance company shall keep its books and records in such manner that its financial condition, affairs, and operations can be readily ascertained and so that the commissioner may readily verify its financial statements and determine its compliance with this chapter.

(d)  Unless otherwise approved in advance by the commissioner, all original books, records, documents, accounts, vouchers, and agreements shall be preserved and kept available in this state for the purpose of examination and inspection and until such time as the commissioner approves the destruction or other disposition of such books, records, documents, accounts, vouchers, and agreements.  If the commissioner approves the keeping of the items listed in this subsection outside this state, the special purpose financial captive insurance company shall maintain in this state a complete and true copy of each such original.  Books, records, documents, accounts, vouchers, and agreements may be photographed, reproduced on film, or stored and reproduced electronically.

§ 6048l.  LICENSE Suspension and Revocation

(a)  The commissioner shall notify a special purpose financial captive insurance company not less than 30 days before suspending or revoking its license pursuant to section 6009 of this chapter, which notice shall state the basis for such suspension or revocation.  The special purpose financial captive insurance company shall be afforded the opportunity for a hearing pursuant to the provisions of the Vermont Administrative Procedure Act, 3 V.S.A. chapter 25. 

(b)  Notwithstanding subsection (a) of this section and 3 V.S.A. § 814(c), no prior notice or hearing shall be required if the grounds for suspension or revocation of a special purpose financial captive insurance company’s license pursuant to section 6009 of this chapter relate primarily to the financial condition or soundness of the special purpose financial captive insurance company or to a deficiency in its assets.

(c)  For purposes of this subchapter, reference to section 6004 in subdivision 6009(a)(2) shall be construed also as a reference to section 6048g. 

§ 6048m.  Delinquency

(a)  Except as otherwise provided in this section, the provisions of chapter 145 of this title shall apply in full to a special purpose financial captive insurance company.

(b)  Upon any order of supervision, rehabilitation, or liquidation of a special purpose financial captive insurance company, the receiver shall manage the assets and liabilities of the special purpose financial captive insurance company pursuant to the provisions of this subchapter. 

(c)  Amounts recoverable by the receiver of a special purpose financial captive insurance company under a reinsurance contract shall not be reduced or diminished as a result of the entry of an order of conservation, rehabilitation, or liquidation with respect to a ceding insurer, notwithstanding any provision in the contracts or other documentation governing the special purpose financial captive insurance company securitization. 

(d)  Notwithstanding the provisions of chapter 145 of this title or any other law of this state:


(1)  An application or petition or a temporary restraining order or injunction issued pursuant to the provisions of chapter 145 of this title with respect to a ceding insurer does not prohibit the transaction of business by a special purpose financial captive insurance company, including any payment by a special purpose financial captive insurance company made with respect to a special purpose financial captive insurance company security, or any action or proceeding against a special purpose financial captive insurance company or its assets;

(2)  The commencement of a summary proceeding with respect to a special purpose financial captive insurance company and any order issued by the court in such summary proceeding shall not prohibit payments by a special purpose financial captive insurance company and shall not prohibit the special purpose financial captive insurance company from taking any action required to make such payments, provided such payments are made: 

(A)  pursuant to a special purpose financial captive insurance company security or reinsurance contract; and

(B)  consistent with the special purpose financial captive insurance company’s plan of operation and any order issued to the special purpose financial captive insurance company pursuant to subsection 6048d(b), as either is amended from time to time. 

(3)  A receiver of a ceding insurer may not void a nonfraudulent transfer by a ceding insurer to a special purpose financial captive insurance company of money or other property made pursuant to a reinsurance contract; and

(4)  A receiver of a special purpose financial captive insurance company may not void a nonfraudulent transfer by the special purpose financial captive insurance company of money or other property: 

(A)  made to a ceding insurer pursuant to a reinsurance contract or made to or for the benefit of any holder of a special purpose financial captive insurance company security with respect to the special purpose financial captive insurance company security; and

(B)  made consistent with the special purpose financial captive insurance company’s plan of operation and any order issued to the special purpose financial captive insurance company pursuant to subsection 6048d(b), as either is amended from time to time.

(e)  With the exception of the fulfillment of the obligations under a reinsurance contract and notwithstanding another provision of this subchapter or other laws of this state, the assets of a special purpose financial captive insurance company, including assets held in trust, on a funds‑withheld basis, or in any other arrangement to secure the special purpose financial captive insurance company’s obligations under a reinsurance contract, shall not be consolidated with or included in the estate of a ceding insurer in any delinquency proceeding against the ceding insurer pursuant to the provisions of this subchapter for any purpose including, without limitation, distribution to creditors of the ceding insurer. 

§ 6048n.  Sponsored Captives

In addition to the provisions of sections 6048a–6048m of this subchapter, the provisions of this section shall apply to any sponsored captive insurance company licensed as a special purpose financial captive insurance company pursuant to this subchapter.

(1)  A sponsored captive insurance company may be licensed as a special purpose financial captive insurance company pursuant to the provisions of this subchapter.

(2)  The special purpose financial captive insurance company shall be subject to the provisions of subchapter 2 of this chapter.  In the event of any conflict between the provisions of this subchapter and the provisions of subchapter 2 of this chapter, the provisions of this subchapter shall control.

(3)  Unless otherwise approved in advance by the commissioner, a participant in a special purpose financial captive insurance company shall be a ceding insurer.  Any change in a participant shall be subject to prior approval by the commissioner.

(4)  Notwithstanding subdivision 6034(1) of this chapter, the special purpose financial captive insurance company may issue securities to any person approved in advance by the commissioner.

(5)  Notwithstanding section 6048g of this subchapter, the special purpose financial captive insurance company shall possess and thereafter maintain unimpaired paid‑in capital and surplus of not less than $500,000.00. 

(6)  The “general account” of a sponsored captive insurance company licensed as a special purpose financial captive insurance company shall mean all assets and liabilities of the sponsored captive insurance company not attributable to a protected cell.

(7)  Any security issued by a special purpose financial captive insurance company with respect to a protected cell and any other contract or obligation of the special purpose financial captive insurance company with respect to a protected cell shall include the designation of such protected cell and shall include a disclosure in a form and content satisfactory to the commissioner to the effect that the holder of such security and any counterparty to such contract or obligation have no right or recourse against the special purpose financial captive insurance company and its assets other than against assets properly attributable to such protected cell.  Notwithstanding the requirements of this subdivision (7) and subject to the provisions of this chapter and other applicable law or regulation, the failure to include such disclosure, in whole or part, in such security, contract, or obligation with respect to a protected cell shall not serve as the sole basis for a creditor, ceding insurer, or any other person to have recourse against the general account of the special purpose financial captive insurance company or against the assets of any other protected cell.

(8)  In addition to the provisions of section 6034 of this chapter, the special purpose financial captive insurance company shall be subject to the following with respect to its protected cells:

(A)  The special purpose financial captive insurance company shall establish a protected cell only for the purpose of insuring or reinsuring risks of one or more reinsurance contracts with a ceding insurer with the intent of facilitating an insurance securitization.  A separate protected cell shall be established with respect to each such ceding insurer, provided that a separate protected cell shall be established with respect to each reinsurance contract or contracts that are funded in whole or in part by a separate securitization transaction; and

(B)  A sale, an exchange, or another transfer of assets may not be made by the special purpose financial captive between or among any of its protected cells without the prior approval of the commissioner.

(9)  All attributions of assets and liabilities to the protected cells and the general account shall be in accordance with the plan of operation approved by the commissioner.  No other attribution of assets or liabilities may be made by a special purpose financial captive insurance company between its general account and any protected cell or between any protected cells.  The special purpose financial captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a reinsurance contract entered into with respect to a protected cell and shall attribute the related insurance securitization transaction, including any securities issued by the special purpose financial captive insurance company as part of the insurance securitization, to such protected cell. The rights, benefits, obligations, and liabilities of any securities attributable to such protected cell and the performance under such reinsurance contract and the related securitization transaction and any tax benefits, losses, refunds, or credits allocated pursuant to a tax allocation agreement to which the special purpose financial captive insurance company is a party, including any payments made by or due to be made to the special purpose financial captive insurance company pursuant to the terms of such agreement, shall reflect the insurance obligations, assets, and liabilities relating to the reinsurance contract and the insurance securitization transaction that are attributed to such protected cell.

(10)  For purposes of applying the provisions of chapter 145 of this title to a sponsored captive insurance company licensed as a special purpose financial captive insurance company, the definition of “insolvency” and “insolvent” in subdivision 6048c(2) shall be applied separately to each protected cell and to the special purpose financial captive insurance company’s general account.   

(11)  In addition to the provisions of section 6048m of this chapter:

(A)  The provisions of chapter 145 of this title shall apply to each protected cell of the special purpose financial captive.  Any proceeding or action taken by the commissioner pursuant to chapter 145 of this title with respect to a protected cell of a special purpose financial captive shall not be the sole basis for a proceeding pursuant to chapter 145 of this title with respect to any other protected cell of such special purpose financial captive insurance company or the special purpose financial captive insurance company’s general account.

(B)  The receiver of a special purpose financial captive insurance company shall ensure that the assets attributable to one protected cell are not applied to the liabilities attributable to another protected cell or to the special purpose financial captive insurance company’s general account unless an asset or liability is attributable to more than one protected cell, in which case the receiver shall deal with the asset or liability in accordance with the terms of any relevant governing instrument or contract.

(C)  The insolvency of a protected cell shall not be the sole basis for the commissioner to prohibit payments by the special purpose financial captive insurance company made pursuant to a special purpose financial captive insurance company security or reinsurance contract with respect to any other protected cell or to prohibit any action required to make such payments.

     And by renumbering the following sections to be numerically correct.

Thereupon, the question, Shall the Senate concur in the House proposal of amendment?, was decided in the affirmative.


Rules Suspended; Bill Passed in Concurrence with Proposals of Amendment

H. 229.

Pending entry on the Calendar for action tomorrow, on motion of Senator Shumlin, the rules were suspended and House bill entitled:

An act relating to corrections and clarification to the health care affordability act of 2006 and related legislation.

Was placed on all remaining stages of its passage in concurrence with proposals of amendment forthwith.

Thereupon, the bill was read the third time and passed in concurrence with proposals of amendment.

H. 113.

Pending entry on the Calendar for action tomorrow, on motion of Senator Shumlin, the rules were suspended and House bill entitled:

An act relating to all-age access for tobacco cessation programs.

Was placed on all remaining stages of its passage in concurrence with proposal of amendment forthwith.

Thereupon, the bill was read the third time and passed in concurrence with proposal of amendment.

Rules Suspended; Bills Messaged

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

S. 78; H. 78; H. 113; H. 229; H. 518.

Rules Suspended; Bills Delivered to Governor Forthwith

On motion of Senator Shumlin, the rules were suspended, and the following bills were ordered delivered to the Governor forthwith:

S. 54; S. 91.

Rules Suspended; Proposal of Amendment; Third Reading Ordered

H. 523.

Appearing on the Calendar for notice, on motion of Senator Shumlin, the rules were suspended and House bill entitled:

An act relating to moving families out of poverty.

Was taken up for immediate consideration.

Thereupon, the bill was read the second time by title only pursuant to Rule 43, and pending the question, Shall the bill be read the third time?, Senator Racine, on behalf of the Committee on Health and Welfare, moved 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:

* * * Reach First * * *

Sec. 1.  33 V.S.A. Part 2, chapter 10 is added to read:

Chapter 10.  Reach First

Subchapter 1.  Eligibility and Assistance

§ 1001.  Definitions

As used in this chapter:

(1)  “Able‑to‑work” means to be free of any physical, emotional, or mental condition that would prevent the individual from engaging in any combination of the work activities for at least 35 hours per week.

(2)  “Able‑to‑work‑part‑time” means having a physical, emotional, or mental condition that would allow the individual to engage in any combination

of the work activities for at least 10 hours per week but would prevent the individual from engaging in such activities for 35 or more hours per week.

(3)  “Adult” means an individual who:

(A)  is 18 years of age or older, and not a dependent child; or

(B)  is under 18 years of age and:

(i)  is pregnant; or

(ii)  is a parent who is the caretaker for a dependent child.

(4)  “Assessment” means the information‑gathering process, carried out by the department’s established protocol, that identifies an individual’s skills, aptitudes, interests, life and work experience, and barriers, and the determination of how these factors relate to the individual’s current or potential participation in the labor force and his or her family responsibilities.  Where appropriate, this process includes the use of tests, other standardized measurement tools, and referrals to relevant professionals for evaluation or diagnosis.  The department shall use the information gathered as part of this process in developing the individual’s family development plan, as well as, where applicable, assessing the appropriateness and feasibility of the individual’s education, training, and employment goals and determining the individual’s ability to work.  The department shall include a process to determine the development and well‑being of the children in the family.

(5)  “Barrier” means any physical, emotional, or mental condition, any lack of an educational, vocational, or other skill or ability, and any lack of transportation, child care, housing, medical assistance or other services or resources, domestic violence circumstances, caretaker responsibilities, or other conditions or circumstances that prevent an individual from engaging in employment or other work activity.

(6)  “Caretaker” means an individual age 18 or older who is fulfilling a parental role in caring for a dependent child by providing physical care, guidance, and decision‑making related to the child’s health, school, medical care, and discipline.

(7)  “Case management” means the services provided by or through the department to participating families, including assessment, information, referrals, and assistance in the preparation and implementation of a family development plan under section 1007 of this title.

(8)  “Commissioner” means the commissioner of the department for children and families, or his or her designee.

(9)  “Department” means the department for children and families.

(10)  “Dependent child” means a child who is a resident of this state and:

(A)  is under the age of 18 years; or

(B)  is 18 years of age or older who is a full‑time student in a secondary school, or attending an equivalent level of vocational or technical training, and is reasonably expected to complete the educational program before reaching the age of 19 or is not expected to complete the educational program before reaching age 19 solely due to a documented disability.

(11)  “Eligible family” means a family that is determined to be financially eligible for the programs authorized by this chapter, in accordance with rules adopted by the commissioner.

(12)  “Family” means:

(A)  one or more dependent children living with one or both parents or a relative or caretaker of such children; or

(B)  a  pregnant individual.

(13)  “Living with a relative or caretaker” means living with a caretaker or relative in a residence maintained by the caretaker or one or more relatives at his or her or their home.

(14)  “Parent” means a biological parent, stepparent, adoptive parent, or pregnant individual.

(15)  “Participant” or “participating adult” means an adult member of a participating family.

(16)  “Participating family” means an eligible family that participates in the Reach First program.

(17)  “Reach Ahead” means the program established under chapter 12 of this title.

(18)  “Reach First payment” means a short‑term cash benefit as determined in section 1004 of this title.

(19)  “Reach First services” means the service component of the Reach First program consisting of assessment, orientation, case management services, support services, and referrals provided to eligible families to assist them in becoming self‑sufficient.

(20)  “Reach Up” means the program established under chapter 11 of this title.

(21)  “Relative” means a person related to a dependent child, as defined by the department by rule.

(22)  “Resources” means any income and property available from whatever source.

(23)  “Secretary” means the secretary of the agency of human services, or his or her designee.

(24)  “Temporary Assistance to Needy Families” or “TANF” means the block grant provided to this state and established in accordance with Part A of Title IV of the federal Social Security Act, as amended, and the regulations adopted pursuant thereto by the U. S. Secretary of Health and Human Services.

(25)  “Unable‑to‑work” means not able‑to‑work and not

able‑to‑work‑part‑time.

(26)  “Work activities” means the following activities limited to the extent and degree that they are allowed and countable in accordance with

Part A of Title IV of the Social Security Act:

(A)  unsubsidized employment;

(B)  subsidized private sector employment;

(C)  subsidized public sector employment;

(D)  work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available;

(E)  on‑the‑job training;

(F)  job search and job readiness assistance;

(G)  community service programs;

(H)  vocational educational training (not to exceed 12 months with respect to any individual);

(I)  job skills training directly related to employment;

(J)  education directly related to employment, in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency;

(K)  satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate;

(L)  the provision, consistent with the department’s rules applicable to self‑employment, of child care services to an individual who is participating in a community service program;

(M)  attendance at a financial literacy class; and

(N)  any other work activity recognized in accordance with Part A of Title IV of the Social Security Act as amended.

(27)  “Work‑ready” means the participant possesses the education or skills demanded by the local job market or is capable of participating in one or more work activities at the level required by the participant’s work requirement, and is not subject to any barrier.

§ 1002.  Purpose

(a)  The purpose of the Reach First program is:

(1)  To stabilize families in crisis, assess the family’s strengths and needs, and orient families to the programs, services, assistance, and participant responsibilities available to improve self‑sufficiency, attain economic independence, and ensure the well‑being of children.

(2)  To refer families without recent work histories, recognizing individual and unique characteristics, to an appropriate program available to assist the family in obtaining the opportunities and skills necessary for self‑sufficiency and economic independence.

(3)  To assist families with recent work histories by providing short‑term financial support and support services to stabilize the family while the family transitions back to employment. 

(4)  To support parental responsibility and positive parental role models, both custodial and noncustodial.

(5)  To improve the well‑being of children by providing short‑term supports to their families and referrals to appropriate programs and services.

(6)  To conserve state public financial resources by operating the system of human services in a manner that is efficient and avoids federal fiscal sanctions.

(7)  To conform to the federal TANF law.

(b)  The critical elements of developing a short‑term stabilization, assessment, and orientation program that assists families to maintain or attain self‑sufficiency are:

(1)  cooperative and realistic goal‑setting, coupled with individualized case management that addresses each individual’s situation and barriers to

self‑sufficiency;

(2)  a short‑term monetary payment and support services of a limited duration to provide for immediate, short‑term needs of the family until the family attains employment quickly, or transitions to an appropriate program to assist the family in order to ensure the family’s well‑being and success to reaching self‑sufficiency; and

(3)  clear and comprehensive information on available options and appropriate services communicated to families in a simple fashion and easy transition to programs, such as Reach Ahead, Reach Up, the postsecondary education program, and any other solely state‑funded or separate state‑funded programs.

§ 1003.  Eligibility

(a)  A family shall be eligible for the Reach First program if the family’s income and resources do not exceed the limits established for the Reach Up program, and the family resides in Vermont.  All eligible applicants for programs under this chapter or chapter 11 or 12 of this title shall be eligible for an orientation, initial assessments, the Reach First payment, and, if appropriate for the family, in‑depth assessment, a family development plan, and services through Reach First.

(b)  Reach First payments and services shall be available only once every 12 months for a family, except as provided for by rule.  Families who have received Reach First within the past 12 months shall be provided financial assistance and services through Reach Up, the postsecondary education program, or other program appropriate for the family.  Families applying for or participating in other programs may also receive Reach First assessments, payments, or services as provided for by rule.

(c)  The commissioner may use the eligibility rules for Reach Up instead of adopting new eligibility rules for this program.

(d)  An adult who accepts employment after reporting as directed under section 1007 of this title may receive Reach First or Reach Up, provided that the family remains financially eligible for the program in accordance with department rules.

§ 1004.  Reach First Payment

(a)  An eligible family shall receive a short‑term cash payment, which shall not exceed 120 days of Reach Up financial assistance for the relevant family size with the same income.  The family may receive the payment in installments or a lump sum, if needed to avert a crisis as determined in the initial assessment or the family development plan, during the period in which the family seeks immediate employment or participates in assessment and creating a family development plan.  The commissioner may establish by rule exceptions to the limit on the amount of the payment, as long as the exceptions are budget‑neutral to the program.

(b)  The department shall offer every eligible family the option of electronic or direct payment of the family’s housing or other expenses to the person providing the lodging, utilities, or other service as provided for by rule.

(c)  For the purposes of calculating the payment, child support shall be treated as income, except that the first $50.00 amount of child support shall be disregarded from income.

§ 1005.  Required services to participating families

(a)  The commissioner shall provide to all eligible families an orientation and an initial, up‑front assessment to determine which programs, referrals, or services are appropriate.  The orientation shall provide the family with information about services and referrals available to the family, and the programs established under chapters 11 and 12 of this title, including program requirements, participant responsibilities, and incentives for participation and obtaining employment.

(b)  If needed by the family to improve the family’s prospects for job placement and job retention, the commissioner shall provide participating families in‑depth assessments of the full range of services needed by each family, intensive case management or case consultation services, referral to any agencies or programs that provide the services needed by participating families, and transition to other programs establishes under chapters 11 and 12 of this title.  Services or referrals for services shall include:

(1)  Appropriate child care, available at times that will enable employment or participation in services indicated by the participating family’s family development plan.  As used in this subdivision, “appropriate child care” shall not include:

(A)  Child care that the department classifies as legally exempt child care, and that a parent or caretaker determines to be unacceptable; and

(B)  Child care that the department classifies as either a registered family child care home or a licensed child care facility, and that a parent or caretaker determines to be unacceptable when such determination is confirmed by the department.

(2)  Transportation which will enable employment or participation in services indicated by the participating family’s family development plan.

(3)  Career counseling, education, and training, and job search assistance consistent with the purposes of this chapter.

(4)  Vocational rehabilitation.

(5)  Medical and dental assistance.

(6)  Homelessness prevention and housing assistance.

(7)  Family planning education and counseling.

(8)  Assistance with obtaining documentation of an apparent or claimed physical, emotional, or mental condition that reasonably can be presumed to limit or eliminate the individual’s capacity to engage in employment or other work activity.

(9)  Transfer to a state‑funded program under subchapter 3 of this chapter, the Reach Up program, or the Reach Ahead program.

(10)  Any other services identified in the family development plan and determined by the commissioner to be necessary and appropriate to achieve the purposes of this chapter or chapter 11 of this title.


§ 1006.  Case management; family development plans; coordinated services

(a)  If a family needs or requests in‑depth assessment and ongoing services, the commissioner shall provide all Reach First services to these participating families through a case management model.  The case manager, with the full involvement of the family, shall recommend, and the commissioner shall establish and modify as necessary a family development plan for each participating family in need of ongoing services, with a right of appeal as provided by section 1132 of this title.  A case manager shall be assigned to each participating family as soon as the family is determined to be eligible for this program and in need of services.

(b)  The family development plan shall include:

(1)  each parent or caretaker’s employment goal;

(2)  an assessment of each parent or caretaker’s strengths and barriers. The initial assessment shall include a literacy evaluation followed by a referral to an appropriate resource or program;

(3)  an identification of the services, supports, and accommodations needed to overcome any barriers, to enable the family to achieve

self‑sufficiency, and to fulfill each parent or caretaker’s personal and family responsibilities;

(4)  an assignment of responsibilities, family development plan requirements, and activities among the case manager and family members, together with a time schedule for such responsibilities, requirements, and activities.

(c)  The initial family development plan shall be completed within 30 days of the first meeting with the case manager.  The case manager shall establish a schedule for periodic review of the family development plan.

(d)  The commissioner shall adopt rules, consistent with research on best practices, establishing maximum caseloads for case managers.

§ 1007.  REQUIRED PARTICIPATION

(a)  Each participating adult in a family receiving Reach First services shall participate in necessary assessments and developing a family development plan, if applicable, unless good cause exists for such noncompliance as defined by the commissioner by rule.  The commissioner may use the same rules applicable to good cause as established in the Reach Up program.

(b)(1)  If an adult does not comply with the following requirements without good cause, the department shall initiate the conciliation process to determine the reason that the adult has not complied with the requirements and shall modify the requirements, if necessary, or provide the adult with a second opportunity to comply:

(A)  The single parent or caretaker in a family who has no barriers to obtaining and maintaining a job and a recent and stable work history, including receiving wages for his or her most recent job that, when annualized, equal or exceed 150 percent of the federal poverty level applicable to the family, shall report to the department of labor for an immediate job search within two working days of having filed an application.

(B)  The able‑to‑work adult in a two‑parent family (when the other parent is able‑to‑work‑part‑time or unable‑to‑work) who has no barriers to obtaining and maintaining a job and a recent and stable work history, including receiving wages for his or her most recent job that, when annualized, equal or exceed 150 percent of the federal poverty level applicable to the family, shall report to the department labor for an immediate job search within two working days of having filed an application.

(C)  The adult in a two‑parent family (when both parents are able‑to‑work) who is not the primary caretaker of the children shall report to the department of labor for an immediate job search within two working days of having filed an application.

(2)  The Reach First payment may be withheld during the conciliation process and until the adult complies.

(3)  If the adult does not report without good cause to the department of labor after the second opportunity, the adult shall be denied Reach First and Reach Up. 

(c)(1)  If an adult does not comply with the following requirements without good cause, the department shall initiate the conciliation process to determine the reason that the adult has not complied with the requirements and shall modify the requirements, if necessary:

(A)  Each participating adult shall participate in the development of his or her family development plan.

(B)  Each participating adult who is not referred to the department of labor pursuant to this subsection shall report as directed by the department for assessment and evaluation activities.

(C)  Each participating adult shall begin to comply with his or her family development plan requirements as soon as possible, and no later than 10 days following identification of initial requirements at the initial family development plan meeting.  Each participating adult shall continue to comply with such family development plan requirements until such time as the family is ineligible or transferred to Reach Up or Reach Ahead.  If a family is transferred to another program, the rules of that program apply.

(2)  If conciliation is unsuccessful, the department may apply the Reach Up sanctions and transfer the family to the Reach Up program for further case management and other services.

Subchapter 2.  Administrative Provisions

§ 1011.  Transition to other programs

(a)  The department shall transfer the family to Reach Up, a separate state program, or a solely state‑funded program established under chapter 11 if, after four months of receiving support in Reach First or sooner at the department’s discretion, a family is assessed to need ongoing financial assistance and the family is financially eligible for Reach Up, a separate state program, or a solely state‑funded program established under chapter 11 of this title, unless the family chooses not to participate.

(b)  If a family finds unsubsidized employment meeting or exceeding the work requirements for Reach Up for the family’s size and composition, but is financially eligible for Reach Up, the department shall transfer the family to Reach Up, unless the family chooses not to participate.  A family transferring from Reach First to Reach Up shall be treated as a recipient for the purposes of income calculation.

(c)  If a family finds unsubsidized employment meeting or exceeding the work requirements for Reach Up for the family’s size and composition, is not financially eligible for Reach Up, and is eligible for the Reach Ahead program, the department shall transfer the family to Reach Ahead, unless the family chooses not to participate.  A family transferring from Reach First to Reach Ahead shall be treated as a recipient for the purposes of income calculation.

(d)  A family transferring to another program under subsections (a) through (c) of this section shall not be required to complete a new application.  Verification of income or other documentation may be required as provided for by rule.

(e)  Transitional medical assistance of up to 36 months shall be provided to families with a working adult who leaves Reach First and is not eligible for Reach Up as provided for in the Vermont Medicaid rule M302.21 in effect on May 1, 2007.

§ 1012.  Notice and Appeal

A participant may appeal decisions in accordance with section 3091 of Title 3.  The commissioner shall provide notice to each participant of the standards and procedures applicable to such appeals.  All federal and agency of human services rules regarding conciliation, notice, hearing, and appeal shall be followed in connection with such appeals.

* * * Reach Up * * *

Sec. 2.  33 V.S.A. § 1101 is amended to read:

§ 1101.  DEFINITIONS

As used in this chapter:

(1)  “Able‑to‑work” means to be free of any physical, emotional, or mental condition that would prevent the individual from engaging in any combination of the work activities, identified in subdivisions 1101(27)(A) through (E) of this title, for at least 35 hours per week.

(2)  “Able‑to‑work‑part‑time” means having a physical, emotional, or mental condition that would allow the individual to engage in any combination of the work activities, identified in subdivisions 1101(27)(A) through (E) of this title, for at least 10 hours per week but would prevent the individual from engaging in such activities for 35 or more hours per week.

(3)  “Adult” means an individual who:

(A)  is 18 years of age or older, and not a dependent child; or

(B)  is under 18 years of age and:

(i)  is pregnant; or

(ii)  is a parent who is the caretaker for a dependent child.

(4)  “Assessment” means the information‑gathering process, carried out by the department’s established protocol, that identifies an individual’s skills, aptitudes, interests, life and work experience, and barriers, and the determination of how these factors relate to the individual’s current or potential participation in the labor force and his or her family responsibilities.  Where appropriate, this process includes the use of tests, other standardized measurement tools, and referrals to relevant professionals for evaluation or diagnosis.  The department shall use the information gathered as part of this process in developing the individual’s family development plan, as well as, where applicable, assessing the appropriateness and feasibility of the individual’s education, training, and employment goals and determining the individual’s ability to work.  The department shall include a process to determine the development and well‑being of the children in the family.

(5)  “Barrier” means any physical, emotional, or mental condition, any lack of an educational, vocational, or other skill or ability, and any lack of transportation, child care, housing, medical assistance or other services or resources, domestic violence circumstances, caretaker responsibilities, or other conditions or circumstances that prevent an individual from engaging in employment or other work activity.

(6)  “Caretaker” means an individual age 18 or older who is fulfilling a parental role in caring for a dependent child by providing physical care, guidance, and decision‑making related to the child’s health, school, medical care, and discipline.

(7)  “Case management” means the services provided by or through the department to participating families, including assessment, information, referrals, and assistance in the preparation and implementation of a family development plan under section 1107 of this title.

(8)  “Commissioner” means the commissioner of the department for children and families, or his or her designee.

(9)  “Department” means the department for children and families.

(10)  “Dependent child” means a child who: is a resident of this state;: and

(A)  is under the age of 18 years; or

(B)  is 18 years of age or older who is a full‑time student in a secondary school, or attending an equivalent level of vocational or technical training, and is reasonably expected to complete the educational program before reaching the age of 19 or is not expected to complete the educational program before reaching age 19 solely due to a documented disability.

(11)  “Eligible family” means a family that is determined to be financially eligible for the programs authorized by this chapter, in accordance with rules adopted by the commissioner.

(12)  “Family” means:

(A)  one or more dependent children living with one or both parents or a relative or caretaker of such children; or

(B)  a pregnant individual.

(13)  “Financial assistance” means cash, payments, vendor electronic or direct payments for a family’s housing or other expenses, and other forms of benefits designed to meet a family’s ongoing basic needs that are available through the Reach Up program.  A family’s ongoing basic needs include food, clothing, shelter, utilities, household goods, personal care items, and general incidental expenses.

(14)  “Job‑ready” means possessing the education or skills demanded by the local job market, and not being subject to any barrier.

(15)(14)  “Living with a relative or caretaker” means living with a caretaker or relative in a residence maintained by the caretaker or one or more relatives as his or her or their home.

(16)(15)  “Parent” means a biological parent, stepparent, adoptive parent, or pregnant individual.

(17)(16)  “Participant” or “participating adult” means an adult member of a participating family.

(18)(17)  “Participating family” means an eligible family that participates in the Reach Up program.

(18)  “Reach Ahead” means the program established in chapter 12 of this title.

(19)  “Reach First” means the program established in chapter 10 of this title.

(19)(20)  “Reach Up program” means the program administered by the department that assists and enables eligible families to become self‑sufficient by providing financial assistance and Reach Up services.

(20)(21)  “Reach Up services” means the service component of the Reach Up program consisting of case management services, support services, and referrals provided to eligible families to assist them in becoming self‑sufficient.

(21)(22)  “Relative” means a person related to a dependent child, as defined by the department by rule.

(22)(23)  “Resources” means any income and property available from whatever source.

(23)(24)  “Secretary” means the secretary of the agency of human services, or his or her designee.

(24)(25)  “Subsidized job” means a job with an employer for which at least 25 percent of the wages are provided by diversion of TANF funds employment for which the employer receives a subsidy from TANF funds or other public funds to offset some or all of the wages and costs of employing a participant.

(25)(26)  Temporary Assistance to Needy Families” or “TANF” means the block grant provided to this state and established in accordance with Part A of Title IV of the federal Social Security Act, as amended, and the regulations promulgated pursuant thereto by the United States Secretary of Health and Human Services.

(26)(27)  “Unable‑to‑work” means not able‑to‑work and not able‑to‑work‑part‑time able‑to‑work‑part‑time.

(27)(28)  “Work activities” means the following activities limited to the extent and degree that they are allowed and countable in accordance with Part A of Title IV of the Social Security Act:

(A)  unsubsidized employment;

(B)  subsidized private sector employment;

(C)  subsidized public sector employment;

(D)  work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available;

(E)  on‑the‑job training;

(F)  job search and job readiness assistance;

(G)  community service programs;

(H)  vocational educational training (not to exceed 12 months with respect to any individual);

(I)  job skills training directly related to employment;

(J)  education directly related to employment, in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency;

(K)  satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate;

(L)  the provision, consistent with the department’s rules applicable to self‑employment, of child care services to an individual who is participating in a community service program;

(M)  attendance at a financial literacy class; and

(N)  any other work activity recognized in accordance with Part A of Title IV of the Social Security Act as amended.

(28)(29)  “Work‑ready” means the earlier of:

(A)  not subject to a barrier and capable of participating in a single work activity or any combination of work activities determined by the commissioner by rule as acceptable to meet the work requirements of section 1113 of this title; or

(B)(i)  having received 12 cumulative months of financial assistance; or

(ii)  having received at least 13 but no more than 18 cumulative months of financial assistance and having been granted an extension of the 12‑month work readiness rule in accordance with subsection 1113(b) of this title the participant possesses the education or skills demanded by the local job market or is capable of participating in one or more work activities at the level required by the participant’s work requirement, and is not subject to any barrier.

Sec. 3.  33 V.S.A. § 1102 is amended to read:

§ 1102.  PURPOSE OF AID

(a)  The purpose of the Reach Up program is:

(1)  to assist families, recognizing individual and unique characteristics, to obtain the opportunities and skills necessary for self‑sufficiency.

(2)  to encourage economic independence by removing barriers and disincentives to work and providing positive incentives to work.

(3)  to support parental nurturing.

(4)  to support parental responsibility and positive parental role models, both custodial and noncustodial.

(5)  to measure the success of the system by what is best for children.

(6)  to protect improve the well‑being of children by providing for their immediate basic needs, including food, housing and clothing.

(7)  to respect the dignity of individuals and families receiving assistance by providing employment, education, and other services through social service delivery systems available to all Vermont citizens residents and by encouraging the private sector to integrate families receiving assistance into the mainstream of the employment market.

(8)  to recognize the challenges facing many families receiving assistance by minimizing structural financial disincentives to increased earnings and the abrupt termination of assistance before parents are fully integrated into the employment market.

(9)  to conserve state public financial resources by operating the system of aid in a manner that is efficient and avoids federal fiscal sanctions.

(10)  to conform to the federal TANF law.

* * *

Sec. 4.  33 V.S.A. § 1103 is amended to read:

§ 1103.  AID; ELIGIBILITY AND BENEFIT LEVELS

(a)  Aid Financial assistance shall be given for the benefit of a dependent child to the relative or caretaker with whom the child is living unless otherwise provided.  The amount of aid financial assistance to which an eligible person is entitled shall be determined with due regard to the income, resources and maintenance available to that person and, as far as funds are available, shall provide that person a reasonable subsistence compatible with decency and health.  The commissioner may fix by regulation maximum amounts of aid financial assistance, and act to insure that the expenditures for the programs shall not exceed appropriations for them consistent with section 101 of this title.  In no case may the department expend state funds in excess of the appropriations for the programs under this chapter.

(b)  Aid Financial assistance may include the maintenance of one or both parents, if in need and in the dependent child’s home, or a relative or caretaker with whom a dependent child is living, if the relative or caretaker is without sufficient means of support.

(c)  The commissioner shall adopt rules for the determination of eligibility for the Reach Up program and benefit levels for all participating families that include the following provisions:

(1)  No less than the first $150.00 $200.00 per month of earnings from an unsubsidized job and 25 percent of the remaining unsubsidized earnings shall be disregarded in determining the amount of the family’s financial assistance grant.  The family shall receive the difference between countable income and the Reach Up payment standard in a partial financial assistance grant.

(2)  No less than the first $90.00 per month of earnings from a subsidized job shall be disregarded in determining the amount of the family’s financial assistance grant.  The family shall receive the difference between countable income and the Reach Up payment standard in a partial financial assistance grant.  Earnings from subsidized jobs shall qualify for federal and state earned income credit if the family is otherwise eligible for such credit.

(3)  Incentive payments shall be provided to participating families for completing parenting education programs or related volunteer work required under a family development plan  Each family development plan shall provide for an incentive payment to be paid to the participating family for completing a required activity or task.

* * *

(5)  The value of assets accumulated from the earnings of adults and children in participating families and from any federal or Vermont earned income tax credit shall be excluded for purposes of determining continuing eligibility for the Reach Up program.  The asset limitation shall be increased from $1,000.00 to $2,000.00 for participating families for the purposes of determining continuing eligibility for the Reach Up program.

* * *

(h)  The department shall offer every eligible family the option of electronic or direct payment of financial assistance for the family’s housing or other expenses to the person providing the lodging, utilities, or other service as provided for by rule.

Sec. 5.  33 V.S.A. § 1105(b) is amended to read:

§ 1105.  CHILD SUPPORT PAYMENTS

* * *

(b)  Notwithstanding any other provision of law, if aid financial assistance to a participating family is terminated due to receipt of child support, minus the first $50.00 per month in such payments, that in combination with other countable income is in excess of the financial assistance cash payment tandard, and the family again becomes eligible for aid financial assistance within the following 12 calendar months solely because the family no longer receives excess child support, aid financial assistance shall be paid as of the date of the family’s reapplication.

Sec. 6.  33 V.S.A. § 1106 is amended to read:

§ 1106.  REQUIRED SERVICES TO PARTICIPATING FAMILIES

The commissioner shall provide participating families case management services, initial assessment of the full range of services needed by each family, periodic reassessment of service needs and the family development plan, and referral to any agencies or programs that provide the services needed by participating families to improve the family’s prospects for job placement and job retention, including the following:

(1)  Appropriate child care, available at times that will enable employment or participation in services indicated by the participating family’s family development plan.  As used in this subdivision, “appropriate child care” shall not include:

(A)  Child care that the department of social and rehabilitation services’ child care services division classifies as legally exempt child care, and that a parent or caretaker determines to be unacceptable; and

(B)  Child care that the department of social and rehabilitation services’ child care services division classifies as either a registered family child care home or a licensed child care center facility, and that a parent or caretaker determines to be unacceptable when such determination is confirmed by the child care services division department.

* * *

(9)  Services for teen parents through the teen parent education program established in cooperation with the department of education.

(9)(10)  Any other services identified in the family development plan and determined by the commissioner to be necessary and appropriate to achieve the purposes of this chapter.

Sec. 7.  33 V.S.A. § 1107 is amended to read:

§ 1107.  CASE MANAGEMENT; FAMILY DEVELOPMENT PLANS; COORDINATED SERVICES

(a)  The commissioner shall provide all Reach Up services to participating families through a case management model informed by knowledge of the family’s home, community, employment, and available resources.  Services may be delivered in the district office, the family’s home, or community in a way that facilitates progress toward accomplishment of the family development plan.  Case management may be provided to other eligible families.  The case manager, with the full involvement of the family, shall recommend, and the commissioner shall establish and modify as necessary a family development plan established under the Reach First or Reach Up program for each participating family, with a right of appeal as provided by section 1132 of this title.  A case manager shall be assigned to each participating family as soon as the family begins to receive financial assistance.  If administratively feasible and appropriate, the case manager shall be the same case manager the family was assigned in the Reach First program.  The applicant for or recipient of aid financial assistance, under this chapter, shall have the burden of demonstrating the existence of his or her condition.

(b)  The family development plan shall include:

(1)  each parent or caretaker’s employment goal;

(2)  an assessment of each parent or caretaker’s strengths and barriers. The initial assessment shall include a literacy evaluation followed by referral to an appropriate resource or program;

(3)  an identification of the services, supports and accommodations needed to overcome any barriers, to enable the family to achieve self‑sufficiency, and to fulfill each parent or caretaker’s personal and family responsibilities;

(4)  an assignment of responsibilities, family development plan requirements, and activities among the case manager and family members, together with a time schedule for such responsibilities, requirements, and activities.

(c)(b)  The initial family development plan shall be completed within 30 days of the first meeting with the case manager.  The case manager shall establish a schedule for periodic review of the family development plan that includes personal contact with the participant at least once per month.  In addition, the case manager shall review, and modify if necessary, the plan in the following circumstances:

(1)  There is a lack of satisfactory progress in achieving the goals of the plan;

(2)  The parent or caretaker has lost unsubsidized or subsidized employment;

(3)  A family member has failed to comply with a family development plan requirement or a work requirement;

(4)  Services required by the plan are unavailable;

(5)  At least 30 days prior to when the parent or caretaker would become work‑ready or would otherwise be deemed work‑ready on the basis of 12‑cumulative‑month receipt of financial assistance;

(6)  A deferment or modification of the work requirements imposed by section 1113 of this title has been requested or is due for review;

(7)  Within 30 days of when the parent or caretaker has started an unsubsidized or subsidized job; or

(8)  Changes to the plan are needed to protect the well‑being of the children.

* * *


Sec. 8.  33 V.S.A. § 1108 is amended to read:

§ 1108.  OBLIGATION TO ASSIST ELIGIBLE FAMILIES WITH DEPENDENT CHILDREN

Except as specifically authorized herein, the commissioner shall not adopt any rule that would result in the termination of aid financial assistance to a participating family, including a dependent child, on the basis of an adult family member’s having received TANF‑funded aid financial assistance, as an adult, for 60 or more months in his or her lifetime.  This provision shall not prevent the commissioner from adopting rules that impose limitations on how many months that families, including a parent who has received an associate or bachelor’s degree while receiving support from the postsecondary education program authorized by section 1121 of this chapter, may receive aid financial assistance authorized by this chapter in the five‑year period immediately following the receipt of such associate or bachelor’s degree.

Sec. 9.  33 V.S.A. § 1112 is amended to read:

§ 1112.  FAMILY DEVELOPMENT PLAN REQUIREMENTS

(a)  Each participating adult in a family applying for or receiving financial assistance shall comply with each Reach Up family development plan requirement provided for in the family development plan, unless good cause exists for such noncompliance as defined by the commissioner by rule.

(b)  The family’s receipt of the full financial assistance amount allowable and avoidance of fiscal sanctions are contingent on compliance with the following family development plan requirements: the participating adult assisting in the development of his or her family development plan and engaging in the family development plan activities for the number of hours per week that the activities are scheduled and available, unless good cause exists for not doing so as defined by the commissioner by rule.

(1)  The single parent or caretaker in a family who has no barriers to obtaining and maintaining a job and a recent and stable work history, including receiving wages for his or her most recent job that, when annualized, equal or exceed 150 percent of the federal poverty level applicable to the family, shall report to the department of labor for immediate job search within two working days of having filed an application for financial assistance.

(2)  The able‑to‑work adult in a two‑parent family (when the other parent is able‑to‑work‑part‑time or unable‑to‑work) who has no barriers to obtaining and maintaining a job and a recent and stable work history, including receiving wages for his or her most recent job that, when annualized, equal or exceed 150 percent of the federal poverty level applicable to the family, shall report to the department labor for immediate job search within two working days of having filed an application for financial assistance.

(3)  The adult in a two‑parent family (when both parents are able‑to‑work) who is not the primary caretaker of the children shall report to the department of labor for immediate job search within two working days of having filed an application for financial assistance.

(4)  Any adult who is referred to the department of labor pursuant to this subdivision and who without good cause fails to report shall be denied financial assistance for his or her family.

(5)  An adult who accepts employment after reporting as directed under this subdivision may receive Reach Up services, provided that the family is eligible for such services in accordance with department rules.

(6)  Each participating adult shall participate in the development of his or her family development plan.

(7)  Each participating adult who is not referred to the department of labor pursuant to subdivisions (1), (2) or (3) of this subsection shall report as directed by the department for assessment and evaluation activities.

(8)  Each participating adult shall begin to comply with his or her family development plan requirements as soon as possible, and no later than 10 days following identification of initial requirements at the initial family development plan meeting.  Each participating adult shall continue to comply with such family development plan requirements until such time as the adult is complying with the work requirement provided for under section 1113 of this title, or the family is determined to be ineligible for or is no longer receiving financial assistance.

(9)  Participants shall engage in their family development plan activities for the number of hours per week that the activities are scheduled and available, unless good cause exists for not doing so as defined by the commissioner by rule.

Sec. 10.  33 V.S.A. § 1113 is amended to read:

§ 1113.  WORK REQUIREMENTS

(a)  Each participating adult in a family receiving a financial assistance grant shall fulfill a work requirement in accordance with this section.  Subject to the provisions of this chapter, and provided that all services required by this chapter are offered when appropriate and are available when needed to support fulfillment of the work requirement, an adult having a work requirement shall obtain employment or participate in one or more work activities, and shall work in accordance with the requirements of this section, in order to maintain continued eligibility for financial assistance and to avoid fiscal sanctions.

(b)(1)  The work requirement shall become effective as soon as the participating adult is job or work‑ready, or upon the family’s receipt of 12 cumulative months of financial assistance, whichever is sooner, unless at the end of the 12‑cumulative‑month period the participant’s case manager concludes that the participant is unable to meet the hours of the applicable unmodified work requirement, as established in subsection (c) of this section. In such cases, the case manager shall prepare a written request on behalf of the participant for an extension of up to six months.  The request shall identify the particular reasons why the participant is unable to meet the work requirement and the remedial actions and services to be provided to the recipient to enable fulfillment of the requirement.  The request shall be submitted to the district director and the family services director commissioner for approval.  The request shall be approved unless the participant is able to meet the work requirement or a modified work requirement established in accordance with section 1114 of this title.

(2)  A participant may meet the work requirement through a combination of work activities until the participant has received 24 months of financial assistance.  After that time, the participant shall meet the work requirement through employment.

 (c)  The hours of the work requirement shall be as follows:

(1)  In two‑parent families in which both parents are able‑to‑work:

(A)  The parent who is not the primary caretaker of a dependent child, referred to in this subsection as the “principal‑earner parent,” shall work no less than full‑time in unsubsidized employment or in one or more work activities and accept unsubsidized employment with scheduled hours up to 45 hours per week;

(B)  As used in this subdivision, “full‑time” means 40 hours per week. A position requiring no fewer than 35 hours per week that the employer defines as full‑time shall be deemed full‑time employment.

(C)  The requirements of this subdivision may be satisfied if both parents secure employment or work activities with combined hours equal to or exceeding 40 hours per week, if such shared fulfillment of the work requirement commences within 30 days of application for financial assistance or within 30 days of the onset of the unemployment of the principal‑earner parent.  Parents who have successfully established a shared work requirement shall have 30 days to re‑establish the arrangement in the event one of the parents becomes unemployed.

(2)  The primary caretaker of a dependent child in a two‑parent family in which both parents are able‑to‑work shall have no work requirement, provided that the principal‑earner parent complies with the work requirement and is not sanctioned in accordance with section 1115 of this title. In the event that the principal‑earner parent in a two‑parent family is sanctioned for failing to meet the work requirement, the primary caretaker shall be deemed work‑ready and subject to subdivision (1) of this subsection.  Within 30 days of the effective date of the principal‑earner parent’s sanction the primary caretaker shall report to the family’s case manager, complete an assessment, modify the family’s family development plan, and comply with the requirements of subdivision (1) of this subsection.

(3)  All other able‑to‑work participants and able‑to‑work‑part‑time participants who are not subject to the work requirement established by subdivision (1) of this subsection, or exempted from the work requirement in accordance with subdivision (2) of this subsection, shall comply with the following requirements:

(A)  If the family includes two parents, and one parent is able‑to‑work and the other parent is able‑to‑work‑part‑time or unable‑to‑work, the able‑to‑work parent shall work in unsubsidized employment or participate in one or more work activities for no fewer than 30 hours per week, and shall accept unsubsidized employment with scheduled hours up to 35 hours per week; and

(B)  If the family includes two parents and both parents are able‑to‑work‑part‑time:

(i)  If one participating parent has been determined able‑to‑work‑part‑time at least 30 hours per week, that parent shall work in unsubsidized employment or participate in one or more work activities for no fewer than 30 hours per week and shall accept unsubsidized employment with scheduled hours up to 34 hours per week, provided that the scheduled hours do not exceed the number of hours the parent has been determined able‑to‑work‑part‑time;

(ii)  If neither participating parent has been determined able‑to‑work‑part‑time at least 30 hours per week but the parents, in combination, have been determined able‑to‑work‑part‑time 30 hours per week, both parents shall work in unsubsidized employment or participate in one or more work activities for which the sum of the hours is at least 30 hours per week and shall accept unsubsidized employment with scheduled hours up to 34 hours per week, provided that the scheduled hours do not exceed the number of hours the parents, in combination, have been determined able‑to‑work‑part‑time; or

(iii)  If the participating parents, in combination, have been determined able‑to‑work‑part‑time fewer than 30 hours per week, the parents shall work in unsubsidized employment or participate in one or more work activities for the number of hours that the two parents, in combination, have been determined able‑to‑work‑part‑time.

(C)  If the family includes two parents and one parent is able‑to‑work‑part‑time and the other parent is unable‑to‑work:

(i)  If one participating parent has been determined able‑to‑work‑part‑time at least 30 hours per week, that parent shall work in unsubsidized employment or participate in one or more work activities for no fewer than 30 hours per week and shall accept unsubsidized employment with scheduled hours up to 34 hours per week, provided that the scheduled hours do not exceed the number of hours that the parent has been determined able‑to‑work‑part‑time; or

(ii)  If one participating parent has been determined able‑to‑work‑part‑time fewer than 30 hours per week, that parent shall work in unsubsidized work or participate in one or more work activities for the number of hours that the parent has been determined able‑to‑work‑part‑time.

(D)  If the family includes only one adult (parent, relative, or caretaker) who is able‑to‑work and no child is under the age of six years, the participant shall work in unsubsidized employment or participate in one or more work activities for no fewer than 30 hours per week, and shall accept unsubsidized employment with scheduled hours up to 35 hours per week.

(E)  If the family includes only one adult (parent, relative, or caretaker) who is able‑to‑work‑part‑time and no child is under the age of six years:

(i)  If the participant has been determined able‑to‑work‑part‑time at least 30 hours per week, the participant shall work in unsubsidized employment or participate in one or more work activities for no fewer than 30 hours per week and shall accept unsubsidized employment with scheduled hours up to 34 hours per week, provided that the scheduled hours do not exceed the number of hours that the participant has been determined able‑to‑work‑part‑time; or

(ii)  If the participant has been determined able‑to‑work‑part‑time fewer than 30 hours per week, the participant shall work in unsubsidized work or participate in one or more work activities fewer than 30 hours per week for the number of hours that the participant has been determined able‑to‑work‑part‑time.

(F)  If the family includes only one adult (parent, relative, or caretaker) who is able‑to‑work and a child under the age of six years, the participant shall work in unsubsidized employment or participate in one or more work activities for no fewer than 20 hours per week and shall accept unsubsidized employment with scheduled hours up to 24 hours per week.

(G)  If the family includes only one adult (parent, relative, or caretaker) who is able‑to‑work‑part‑time and a child under the age of six years:

(i)  If the participant has been determined able‑to‑work‑part‑time at least 20 hours per week, the participant shall work in unsubsidized employment or participate in one or more work activities for no fewer than 20 hours per week, and shall accept unsubsidized employment with scheduled hours up to 24 hours per week, provided that the scheduled hours do not exceed the number of hours that the participant has been determined able‑to‑work‑part‑time; or

(ii)  If the participant has been determined able‑to‑work‑part‑time fewer than 20 hours per week, the participant shall work in unsubsidized work or participate in one or more work activities fewer than 20 hours per week for the number of hours that the participant has been determined able‑to‑work‑part‑time.

(4)  Except as provided in section 1133 of this title, in computing the cumulative 12‑month period of financial assistance for determining the effective date of a participating adult’s work requirement under subsection (b) of this section, the calculation shall not extend to times prior to the effective date of this section.

(5)(4)  A pregnant individual who is employed shall continue such employment unless there has been a medical determination that the individual is unable‑to‑work, or the individual is exempt from the work requirement based on other criteria established by the commissioner by rule.  A pregnant individual shall not be required to begin new employment.

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(e)  The commissioner may require a participant to participate in job search, coordinated by the commissioner, for the number of hours per week that corresponds to the participant’s work requirement hours under subsection (c) of this section, or a lesser amount that in combination with the participant’s unsubsidized paid employment equals the participant’s work requirement hours under subsection (c) of this section, and during the following periods:

(1)  For a two‑week period immediately following the family’s application for benefits, or reapplication for benefits following a period of non‑receipt lasting at least 30 days, or during the period a decision on application or reapplication is pending, whichever period ends later, and as long as consistent with subdivisions 1112(b)(1), (2), or (3) of this title;

(2)  For a period of two weeks at any time when the participant is deemed to be job‑ready by the commissioner;

(3)  For the first two weeks of the 13th calendar month for which financial assistance is received; and

(4)  For a period of two weeks following the loss of paid employment.

(f)  If a participant is job‑ready and no unsubsidized job is available, or if the participant is work‑ready but not job‑ready, the participant shall accept a subsidized job, community work experience, job search, other work activities, or any combination of these activities, as deemed appropriate by the commissioner that equals the number of hours of the participant’s work requirement per week, or a lesser amount that, in combination with the parent’s unsubsidized paid employment, equals the number of hours of the participant’s work requirement.

(g)(f)  Notwithstanding any other provision of this chapter, a participant’s hours of unpaid work activities that are not primarily education, job search, job readiness activities, or training shall not exceed the levels established by the Fair Labor Standards Act.  Adjustments required to conform with the Fair Labor Standards Act shall be made pursuant to calculation standards established by the commissioner by rule.

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Sec. 11.  33 V.S.A. § 1114 is amended to read:

§ 1114.  DEFERMENTS AND, MODIFICATIONS, AND REFERRAL

(a)  The commissioner shall establish by rule criteria, standards, and procedures for granting deferments from or modifications to the work requirements established in section 1113 of this title, in accordance with the provisions of this section and for referring individuals with disabilities to the office of vocational rehabilitation.

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(b)  The work requirements shall be either modified or deferred for:

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(3)  A participant who is able‑to‑work‑part‑time or is unable‑to‑work.  Such participants shall be referred for assessment and vocational and other services in accordance with the provisions of his or her family development plan.  Participants with disabilities that do not meet the standards used to determine disability under Title XVI of the Social Security Act shall participate in appropriate rehabilitation, education, or training programs.

(4)(3)  A primary caretaker parent in a two‑parent family in which one parent is able‑to‑work‑part‑time or unable‑to‑work, a single parent, or a caretaker who is caring for a child who has not attained 24 months of age for no more than 24 months of the parent’s or caretaker’s lifetime receipt of financial assistance.  To qualify for such deferment, a parent or caretaker of a child older than the age of six months but younger than 24 months shall cooperate in the development of and participate in a family development plan.

(5)(4)  An individual who has exhausted the 24 months of deferment provided for in subdivision (4)(3) of this subsection and who is caring for a child who is not yet 13 weeks of age or a primary caretaker parent in a family with two parents who are able‑to‑work if the primary caretaker is caring for a child under 13 weeks of age and is otherwise subject to a work requirement because the other parent in the family is being sanctioned in accordance with section 1116 of this title.

(6)(5)  A participant who is needed in the home on a full or part‑time basis in order to care for an ill or disabled parent, spouse, or child.  In granting deferments, the department shall give deference to the participant’s preference as to the number of hours the participant is able to leave home to participate in work activities.

 (7)(6)  A participant who is under 20 years of age, who is a single head of household or married, and who maintains satisfactory attendance at secondary school or the equivalent during the month, or participates in education directly related to employment for an average of 20 or more hours per week during the month.

(8)(7)  A participant who has attained 20 years of age and who is engaged in at least 25 hours per week of classes and related learning activities for the purpose of attaining a high school diploma or general educational development (GED) certificate; provided that the participant is making satisfactory progress toward the attainment of such diploma or certificate; and provided further that a deferment or modification granted for this purpose does not exceed six months.

(9)(8)  A participant who is enrolled in, attending, and making satisfactory progress toward the completion of a full‑time vocational training program that has a normal duration of no more than two years and who is within 12 months of expected completion of such program.  Such deferment or modification shall continue until he or she has completed the program, he or she is no longer attending the program, or the 12‑month expected completion period has ended, whichever occurs first.

(10)(9)  A participant for whom, due to the effects of domestic violence, fulfillment of the work requirement can be reasonably anticipated to result in serious physical or emotional harm to the participant that significantly impairs his or her capacity either to fulfill the work requirement or to care for his or her child adequately, or can be reasonably anticipated to result in serious physical or emotional harm to the child.

(11)(10)  Any other participant designated by the commissioner in accordance with criteria established by rule.

(c)  A participant who is able‑to‑work‑part‑time or is unable‑to‑work shall be referred for assessment of the individual’s skills and strengths, accommodations and support services, and vocational and other services in accordance with the provisions of his or her family development plan.  The work requirement hours shall reflect the individual’s ability to work. Participants with disabilities that do not meet the standards used to determine disability under Title XVI of the Social Security Act shall participate in rehabilitation, education, or training programs as appropriate.  A participant who qualifies for a deferment or modification and who is able‑to‑work‑part‑time shall have his or her work requirement hours modified or deferred.  In granting deferments, the department shall give deference to the participant’s estimation of the number of hours the participant is able‑to‑work.

 (c)(d)  Absent an apparent condition or claimed physical, emotional or mental condition, participants are presumed to be able‑to‑work.  A participant shall have the burden of demonstrating the existence of the circumstances or condition asserted as the basis for a deferral or modification of the work requirement.

(d)  A participant who qualifies for a deferment or modification under subsection (b) of this section and who is able‑to‑work‑part‑time shall have his or her work requirement hours modified instead of deferred.

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Sec. 12.  33 V.S.A. § 1116(f)(2) is amended to read:

(2)  The commissioner shall provide the housing costs by vendor electronic or direct payment directly to the vendor person to whom housing costs are owed.  Any balance of financial assistance remaining after the vendor electronic or direct payment has been deducted shall be paid in two payments, the first to be paid within the first half of the calendar month and the second to be paid within the second half of the calendar month.

Sec. 13.  33 V.S.A. § 1116(h) is amended to read:

(h)  To receive payments during the fiscal sanction period, an adult who is the subject of the sanction shall meet no less than once each month to report his or her circumstances to the case manager or to participate in assessments as directed by the case manager.  In addition, this meeting shall be for initial assessment and development of the family development plan when such tasks have not been completed; reassessment or review and revision of the family development plan, if appropriate; and to encourage the participant to fulfill the work requirement.  Meetings required under this section may take place in the district office, a community location, or in the participant’s home.  Facilitation of meeting the participant’s family development plan goals shall be a primary consideration in determining the location of the meeting.  The commissioner may waive any meeting when extraordinary circumstances prevent a participant from attending.  The commissioner shall adopt rules to implement this subsection.

Sec. 14.  33 V.S.A. § 1121 is amended to read:

§ 1121.  AUTHORIZATION TO SEGREGATE STATE FUNDS AND CREATE SEPARATE STATE AND SOLELY STATE-FUNDED PROGRAMS

(a)  Consistent with the purposes of this chapter, the commissioner shall structure payment of appropriated TANF funds and, state “maintenance of effort” funds, and general funds to create separate state and segregated fund solely state‑funded programs to aid families eligible for the financial assistance.  For purposes of this chapter:

(1)  “Separate state program” means a program in which state funds are used to fund the program, and these funds are counted toward the state’s maintenance‑of‑effort requirement under TANF.

(2)  “Solely state‑funded program” means a program in which state funds are used to fund the program and are not counted toward the state’s maintenance‑of‑effort requirement in order to maintain flexibility.

(b)  The commissioner shall establish by rule standards, requirements, and criteria for the administration of any program established pursuant to this section that requires rules different from the financial assistance program.

(c)  Programs and payment structures created pursuant to this section shall accomplish one or more of the following purposes:

(1)  To provide work supports and assistance to working families while preserving their ability to receive financial assistance beyond the federal TANF 60‑month lifetime limit.

(2)  To foster parental nurturing of children in their own homes.

(3)  To stabilize families in crisis.

(4)  To preserve financial assistance options beyond the federal TANF 60‑month lifetime limit for families addressing multiple issues relating to

self‑sufficiency.

(5)  To preserve eligibility for financial assistance for certain parents who are under 18 and legal aliens whom federal law makes ineligible for

TANF‑funded assistance.

(6)  To provide for the transition of families in the welfare restructuring project to the Reach Up program.

(7)(6)  To ensure that the state complies with the federal TANF program requirements and is able to avoid federal fiscal sanctions.

(d)(1)  The following separate state solely state‑funded programs shall be established, in accordance with rules adopted by the commissioner:

(1)(A)  The separate state postsecondary education program established under section 1122 of this title.

(2)  A program for families in which the adult (parent or caretaker) or adults (parents) are not involved in work activities at a TANF‑countable level, limited to the number of families necessary to meet federal TANF participation rate requirements.

(3)(B)  A program for families with a single parent, a caretaker, or two parents with one parent who is able‑to‑work‑part‑time or unable‑to‑work that have a primary caretaker of a child under 24 months of age who chooses pursuant to subdivision 1114(b)(4) subsection 1114(b) of this title to defer the work requirement and to remain at home caring for the child, provided that the deferment is limited to any 24 months over the primary caretaker’s lifetime, and the elimination of such work requirement is not a state option under TANF.

(C)  A program for the following vulnerable families:

(i)  a minor parent who is not meeting the TANF requirements;

(ii)  families who have received TANF‑funded assistance for over 60 months and do not qualify for the hardship exemption as provided for by rule;

(2)  Solely state‑funded programs may be established, in accordance with rules adopted by the commissioner, for the following individuals:

(A)  families in which the parents or caretakers are ineligible immigrants, who are considered work eligible under federal law, but are unable to meet the number of hours in work activities required for the family to be counted as meeting the work requirement under federal law;

(B)  adults who have been in sanction for more than three months;

(C)  families in which the parents have disabilities;