End of 2009 Session Report

July 7th, 2009

Friends & Constituents: Next year I am going to try to save paper by sending both the mid-session and end of session reports via email to as many of you who are able & willing to receive it in that format. But I need your help to do that. Please send me your email to: amook@leg.state.vt.us saying yes, I want to receive this via email. If I do not hear from you, you will continue to receive it in hard copy. If you have specific subjects you would like to hear about, let me know.

Thank you for your support.

QUESTION??? What are your five priorities that you would like to see the legislature move forward during the second year of this biennium?

Send them to me at the above email. Thank you….

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Decommissioning Vermont Yankee

An important bill was the Vermont Yankee decommissioning legislation, which states that upon sale or transfer of ownership of the plant, its decommissioning fund must be shown to be adequate to begin cleaning up the site. That means that the long-term “Safestor” form of decommissioning cannot be used as a financial instrument. Safestor would put the nuclear power plant in storage while money in the decommissioning fund grows in the stock market. The fund would not need to be made whole with cash – a parental guarantee, for example, may suffice. If the plant is NOT to operate beyond 2012, the fund must be adequate as of March 22, 2012, the day after the current license expires. [This bill has been vetoed by the Governor.]

Marriage equality

Civil marriage, S.115, captured the headlines and hearts of most Vermonters who view civil marriage as a right to be accorded to all persons. The House and Senate overwhelmingly supported marriage equality, in spite of a veto by the Governor. As of September 1st of this year, two persons of the same sex will be able to legally marry.

Renewable Energy

Legislation was passed this year to help the state develop its renewable energy sector. H.446 has the public service board set long-term, stable contract prices for small renewable energy producers, ranging from solar to small wind and methane projects. As proof of the number and kinds of jobs that will be created, 75 Vermont companies were involved in building just four of the most recent farm methane digesters. Contrary to critics’ assertions, this legislation protects ratepayers through strict caps on sizes of projects and total percentage that will be eligible statewide. Estimates are that at full build-out (which may take years) rates may rise from half a percent to one and a half percent (50 cents to $1.50 on a $100 bill). Larger consumers of electricity may be allotted special rates to protect them further. H.446 also directs federal stimulus funds intended for energy projects, aligns our building codes to make the state eligible for other federal funds, and offers programs for municipalities to build biomass projects, and offers low-interest loans for energy-saving projects to residents, if voters so choose.

Stewardship of our Fish, Wildlife and Water Resources

Hunting, fishing, farming and logging have contributed much to the economy and culture of Vermont. Stewardship of Vermont’s wild resources is the duty of the Fish, Wildlife, and Water Resources Committee.

Water: H.15 is an act relating to Aquatic Nuisance Control. A more rapid response is needed when a new invasive species is discovered in Vermont lakes or streams. The bill aligns permitting and allows our Agency of Natural Resources to respond quickly (within six months) to contain and eliminate invasive species. Water recreation is an important driver of Vermont’s economy and the agency needs to act efficiently to preserve our water quality.

Deer: Another area of economic concern was addressed by H.16, a bill relating to deer damage to forest resources. Our woodlands are the second most important industry in Vermont. Because Vermont’s forest industry depends on natural regeneration, there is a period of time when saplings are vulnerable to deer browsing. H. 16 would allow woodlands owners to keep the deer population at a level where they are not wiping out young trees. To get the number of deer down to sustainable levels we need to harvest more each year. The bill is in the Senate Natural Resources committee awaiting action in January 2010.

Fish: Vermont’s fish hatcheries contribute to the sterling reputation of Vermont’s sports fishery by assuring a plentiful supply of valued species and by maintaining special brood stocks of popular sports fish species. During the budget process, when we found Vermont’s financial resources stretched, much consideration was given to closing Vermont’s fish hatcheries. The House argued against closure because of the value our hatcheries have to sport fishing in Vermont.

Stimulating Vermont’s Economy

The Legislature took bold actions to create jobs and foster growth for Vermont’s employers. By investing wisely and creating strategic and innovative policies, Vermont’s employers stand to leverage small investments into $175 to $200 million worth of economic activity. The following are examples of some of the forward-thinking and strategic measures:

Green Jobs Vermont invested $37 million dollars of federal government ARRA assistance into a Clean Energy Fund. These funds will leverage close to $150 million in new jobs and economic activities that will create new markets and opportunities for employers in helping boost the green economy.

Seed Capital. We also invested $3.5 of state funds into a “seed capital” fund and other loan programs to promote small businesses and those ready for their next stage of growth.

Buy Local Movement. Vermont created a Farm-to-Plate Investment Program that will identify links between farmers and consumers, and providing matching grants and technical assistance to build the missing infrastructure. The end result will be more jobs and capacity for more storage capacity, slaughter facilities, marketing support, distribution networks, etc.

Stronger Co-ops. Co-ops are great for employee ownership, cooperation and sustaining jobs, and have a pro-social business mission. But it is often hard for them to raise money since they rely on members. With H.109, a new form of business called limited co-ops was created which will allow them to attract outside investors as a way to raise equity but still retain control for the non-investors.

Stronger Car Dealerships. Vermont’s car dealers have been at the mercy at the big auto makers for far too long. A new law will give them the ability to sell more than one brand of car, giving consumers more choices, and helping save many dealers from bankruptcy.

Bolstering Tourism. An additional $600,000 was invested in attracting tourism and conventions to Vermont. This bodes well for Vermont as we attract those who wish to stay closer to home to vacation, and for those who wish to enjoy our quality of life and offerings of our environment.

E-corporations creation. Vermont made national headlines last year when we passed a House-initiated program to allow for incorporation of businesses that exist without having physical locations. Our next step is to create clear regulations that enable companies to build software platforms that will enable future e-companies to take advantage of this new opportunity.

Protection = Commerce. It may not be exciting to the average Vermonter, but insurance is big business in Vermont. Vermont boasts the strongest insurance business nationally in many categories, including captive insurance. We strengthened their ability to attract even more business, and also protected senior citizens from fraud and shady dealings. Importantly, that helps not only them, but also the lawyers and insurance companies who will only work in safe environments. This will bolster these businesses in Vermont.

Health Care

Marketing of Drugs: One of the great contributors to rising health care costs is the amount spent on prescription drugs. S. 48 bans most gifts which pharmaceutical companies give to doctors and increases transparency in the marketing of pharmaceuticals and other “prescribed products.” Almost a third of every dollar spent on prescription drugs goes to marketing. This marketing occurs for prescription drugs, biologics (a class of expensive, “large-molecule” drugs) and medical devices (pacemakers, artificial knees, etc.). The bill bans gifts—including free meals—from manufacturers to providers with some exceptions, and it requires disclosure of most of these exceptions. The manufacturer’s most important marketing tool is the ability to provide free samples. Free samples—of the newest drugs that tend to be more expensive—tend to affect physicians’ prescribing patterns, for obvious reasons. The House bill also required manufacturers to report free samples given to providers. But a last-minute compromise with the Senate resulted in exempting free samples from disclosure.

Palliative Care: A patient at any stage of life can benefit from palliative care. Palliative care relieves symptoms such as pain, nausea, anxiety, or shortness of breath, which may be caused by underlying disease or may be side effects of aggressive treatment toward a cure. It includes a variety of types of care given to improve a patient’s quality of life. It involves addressing physical, cognitive, emotional, psychological and spiritual needs and facilitating patient autonomy, access to information, and choice. Vermonters deserve to have appropriate palliative care available to them when they experience a serious illness or at the end of life. H.435 works toward expanding access to palliative care services for children and adults in Vermont and attempts to bring greater knowledge of palliative care to physicians, assuring that patients get the information they need to make informed choices about their care. In addition to giving Vermonters the kind of care they have said they want, the appropriate use of palliative care is very cost effective.

The legislature’s goals are to improve access to care, improve quality and to contain costs. Prevention and early detection of disease are sure ways to contain costs and keep Vermonters healthier through their lives. Insurance coverage that pays for screening is critical for early detection. H. 24 requires insurers to cover the costs of colorectal cancer screenings for people over age 50 or in high-risk categories and caps the co-pay at $100.

Rising costs are continually being addresses. S.129 is an example. First, it looks at how the availability of a service affects the use (and perceived need for) that service, thereby improving health care delivery and saving money. Second, it asks for a plan for how to integrate “shared decision-making” into the Blueprint for Health—a model that has been shown to both increase quality of care and decrease costs. Third, it sets up a work group in conjunction with Dartmouth Institute and Brookings Institution to create an “accountable care organization” (ACO) demonstration project. [An ACO is a network of providers who are accountable for costs and quality and who share the savings inherent in improving quality.] This is a significant initiative in payment reform.

H. 444 allows farmers and other self-employed people applying for Catamount Health Care to include depreciation as an allowable business expense for income purposes, and it exempts self-employed people who lose their insurance from the 12-month waiting period.

This omnibus health care bill (H. 444) also positions Vermont to receive federal stimulus money for health information technology. It allows providers to send a patient with chlamydia (a sexually transmitted disease) home with a prescription for his/her partner as well. It also asks providers to develop recommendations for how to coordinate stroke treatment around the state, and the bill sets up a pilot program, supported by a bulk purchasing pool, to provide vaccines for all adults and children in Vermont at no cost. Finally, the bill bans the flame retardant known as “deca” because, ironically, when it burns it’s highly toxic.

Transportation

Finally, Vermont’s roads and bridges will be getting some much-needed attention. While stimulus funds strengthen Vermont’s ability to respond to the enormous backlog of needed transportation projects, the assessment on fuels will see funding well beyond the quick flash of stimulus cash. The Legislature passed in the final week of session a Transportation Bill that maximizes the stimulus funds in the next few years, and establishes a fund that will be available for projects far beyond then.

Bonding was a part of the total package; however, the bill reserves the issuance of bonds until the need is proven. The bill imposes a 2% assessment on the retail price of gasoline, which is about 4 cents per gallon. Revenue from the assessment, along with a 3-cent-per-gallon assessment on diesel fuel, is segregated from all other transportation fund revenue in a special fund. The transportation infrastructure bond fund is dedicated to payment of the debt service on the bonds. Revenue in excess of debt service requirements may be expended on transportation capital projects.

Local municipalities had a roller coaster experience this session, as budget discussions went round and round on town program funding. In the end, most funding was restored and towns will – if not already – receive approximately 85% of their funding. Watch the roads; the paving and construction season has begun!

Protecting Our Community

Sexual Violence Prevention. (S. 13) Legislation was signed into law that enhances the comprehensive statewide approach to preventing child sexual abuse. Education is viewed as an important component of prevention. Programs will be developed which assist educators and those working with children to recognize and provide appropriate instruction about healthy and respectful relationships; develop and maintain effective communication with trusted adults; recognize sexually offending behaviors; and increase awareness of available school and community resources, therefore potentially prevent sexual abuse and sexual violence. Local school boards will provide opportunities for parents, guardians and other interested persons to receive the same information.

Concern for the welfare of victims of sexual violence will be addressed through the use of special investigative units (SIUs), which are comprised of specially trained persons to work with victims; depositions will not be taken unless absolutely necessary. And, if depositions are taken, measures will be put in place to assure the victim’s well being. The Bennington County SIU is a model for the state.

A new crime, aggravated sexual assault of a child, carries significant penalties. The offender could be imprisoned for not less than 25 years with a maximum term of life, and, in addition, may be fined not more than $50,000. The 25-year term of imprisonment required may not be suspended, deferred, or served, as a supervised sentence, and the defendant will not be eligible for probation, parole, furlough, or any other type of early release until the expiration of the 25-year term of imprisonment. The court may not defer a sentence for this crime.

The department of corrections will be carrying out a comprehensive systems approach to the management of sex offenders upon their release, which employs longer and more intensive community supervision of high-risk sex offenders.

Registry Requirements

S.125 was a response to the federal Adam Walsh Act, which calls for extensive additions to the Internet sex offender registry. Persons who have been released from incarceration may be placed on the sex registry that is accessible on the Internet. The offense and whether they have been deemed at high-risk of offending again or have committed crimes that require lifetime registry will determine whether they are placed on the Internet registry. Additionally, fingerprinting of suspects will be allowed at the charging stage and access to records of an inmate who has been released into the community that may be relevant to current investigation may be accessed by court order. Change of name to avoid being listed on the registry will not be possible and persons moving into Vermont who are already listed on other state registries will be listed on the Vermont registry.

Sexting: Addressed in this legislation is the practice of “sexting,” the transmission of indecent pictures on cell phones by teens. Those participating in “sexting” will be held accountable and educated as to the consequences of their actions, but will not be placed on the sex registry.

General, Housing, & Military Affairs Committee:

Affordable Housing: The House is concerned about the future of the Vermont Housing and Conservation Board (VHCB) and the impact cuts will have on programs VHCB supports. The survival of VHCB is important to much of the housing work Vermont hopes to accomplish in the future. The budget bill preserves much of the funding and also contains language to reconfigure the VHCB board and clarifies the importance of VHCB in the handling of ARRA (federal stimulus) funds moving forward.

A bill relating to mobile home parks was an early focus of the Housing Committee. Testimony led the committee to conclude that it needed to gather more information before we moved forward with the bulk of the bill, so a committee will report back to us in January. Legislative Council will also work to compile the statutes relating to mobile home parks; language relating to mobile homes and parks is scattered across our books and in order to effect further change we will have to try to bring it all under one section. A fuller version of H. 92 is expected to be passed next spring.

The House also heard testimony with respect to Vermont Housing and Finance Administration (VHFA)’s request for added use of their “moral obligation” ability. Given the crisis with the secondary mortgage market, VHFA is being asked to pledge more funds for each large loan they make and if they are going to continue to make the best use of their funds, they need to use moral obligation bonds to secure loans. Given the size of VHFA and the continued room under our bonding capacity, permission to expand the use of bonding in this manner should not be a problem for VHFA or Vermont’s credit rating.

Military:

The legislature held a public hearing on the upcoming deployment of our National Guard to Afghanistan. Approximately 1,800 Vermont Army Guard men and women will be deployed starting in November or December. This is the largest call-up of our Guard since World War II. The hearing, as well as further communication with the Adjutant General, emphasized supporting state partnerships with the military to provide social services to the families of our Guard. Federal support for social service programs has been generous, and we will be monitoring the Guard and the state to make sure both active-duty soldiers and veterans receive the help to which they are entitled.

Civil War Site: The Wilderness battlefield in Virginia, site of an important Civil War battle involving Vermont troops, is being threatened by large commercial development. In a joint resolution that passed the House on Lincoln’s birthday, Vermont called on Virginia county officials and commercial developers to honor the Civil War site and protect it from encroaching development. The resolution has since been followed with correspondence from U.S. Rep. Peter Welch. While it remains unclear as to the affect this resolution will have, we felt honoring our Civil War dead by the purchase of parkland and the erecting of a monument deserved our effort.

General: Wine and Alcopops

The General, Housing and Military Affairs Committee heard hours of testimony on the effects of “alcopops” (flavored malt beverages) on underage drinkers. Needless to say, manufacturers and sellers strongly opposed an outright ban or a change of tax category from malt beverage to spirits. There was much discussion of underage drinking and the pros and cons of lowering the drinking age, and the issue will be taken up again in January.

Just in time for the summer festival season, winemakers may make and sell fortified wines (over 16%), and they and distillers may now sell their own products on their own premises without hiring a caterer with the correct liquor license.

Casino Nights

Under current law, non-profit establishments are allowed to host three gaming events a year (besides bingo etc.); H. 249 allows them to host nine more, which particularly benefits rural communities where there may be fewer halls capable of hosting such events.

Agriculture in Vermont

Vermont is the Green Mountain State, literally, because we are 78% forestland and another 14% farmland. Keeping those rural resources productive and profitable remains a deep challenge. Both sectors are going through a punishing downturn. Dairy farmers will lose, on average, approximately 40 cents on every gallon of milk they produce in 2009; lumber demand is down approximately 70% since last fall with mill layoffs approaching 50%.

The House Agriculture Committee has continued last session’s overall strategy – support the diversification of Vermont agriculture, i.e. dairy base, and expand opportunities for the forest and wood products sector. Here are a few bills that were passed to support that diversification.

H.58, Dairy Goat Milk This bill defined new standards for goat’s milk to help this growing sector develop further. Goat’s milk currently brings farmers five times as much as cow’s milk, and Vermont cheese producers are looking for more supply.

H.125, Raw Milk There is consumer demand for fresh, local raw (unpasteurized) milk. While small-scale sales have always been allowed under Vermont law, there were no defined standards until this bill, which creates 20 plus rules to help promote sanitation, safe handling, animal health, and consumer education. This milk also currently sells for six to ten times as much as store-bought milk, a definite financial plus for farmers

H.152, Biomass Energy This bill establishes a biomass energy development working group to develop the environmentally safe and sustainable harvesting of more low-grade forest wood for use in generating both heat and electricity. A modest increase in this activity will add $200 million dollars to the Vermont economy.

H.192, EBT (Electronic Benefit Transfer) Vermonter’s spend approximately $7M each month purchasing food with food stamps (now called 3 Squares). Local farmers have been largely unable to sell to these customers for the lack of Electronic Benefit Transfer (credit card) machines at farmer’s markets. This bill provides machines for another 7 markets this year.

H.231/H.313, Farm to Plate This bill addresses the greatest opportunity in Vermont agriculture today. We grow 3% of the food we eat, and we send out-of-state a whopping $2.6 billion dollars a year to purchase our food. A 10% shift in our consumption from out-of-state sources to in-state sources generates $500 million in economic activity, which exceeds the total gross receipts.

This bill will inventory and map our fragmented food system to find the opportunities to increase in-state growing, processing, distribution, and consumption of Vermont-grown food.

JRS.26, Industrial Hemp This resolution calls on the federal government to re-recognize and legalize hemp (the non-psychoactive cousin of marijuana). Hemp was once widely grown and has many, many profitable uses from food, fiber, and fuel. Last year we created an in-state program to support hemp; now we must get a change in federal law before crops can be grown.

S.94/H.93, Maple Sugaring on State Lands This bill supports further expansion of a small program that allows licensing of state-owned forests for maple sugaring. There is a good opportunity here, as maple sugar is at an all-time high on world markets, and Vermont maple sugar is perceived as a premium product.

Emergency Loans for Spring Planting The House and Senate Agriculture Committees, working with the Agency of Agriculture and the Administration, developed an $8 million dollar loan program with VEDA to enable farmers to buy the seed and fertilizer required for spring planting.

FY 2010 budget

During the past several months, it has been said many times that the Legislature was not responsive, nor sensitive to Vermonters’ needs. I strongly disagree. The budget bill went through a lengthy process including public hearings and taking testimony from those who would be most effected by any budget cuts.

Yes, there has been controversy surrounding the budget bill and it is due largely to the dramatic differences in philosophy, priorities and values of the role of government in how to best serve Vermonters in this difficult economic time. A major issue included whether to move the State Teacher’s Retirement Fund from the General Fund to the Education Fund. That alone would have substantially increased property taxes. Also included: stability in the number of devastating cuts to state worker positions and how it would impact delivery of services, how to protect the most vulnerable, keep VPharm for Seniors, Reach Up, raise child care subsidy rates to providers, increased PILOT funding (payment in lieu of taxes for those communities that have state buildings in them-like Bennington), and at the same time financial relief for the middle income Vermonters.

The budget is responsible, reasonable and holds those values important to the majority of members of this legislature. The budget was passed by the House of Representatives, and the Senate in May, and later was vetoed by the Governor. On June 2, both the Senate and the House returned to Montpelier and voted to over-ride the Governor’s veto. On June 2, there was a “Companion Bill” added to the budget bill – adding the following to the bill: a temporary fix to the Unemployment Insurance Fund, added money to Vermont Telecommunications Authority which is addressing access to broadband in the state, added bridging funds for tobacco cessation programs; creation of a state employee retirement incentive package; income tax change on capital gains, and Next Generation funding for scholarships, to name a few.

Education

H. 427, the miscellaneous education bill, addressed an array of issues that increase access to education for students and parents, clarifies language for school administrators and school boards, and establishes the ground work for an initiative that addresses high school drop out rate.

School boards that do not operate a high school can designate a public school or an approved independent school as the sole public high school for the district. Schools who receive students must announce tuition by January 15, so that sending districts can plan their budgets.

The bill permits parents of children in a district that does not maintain an elementary school to give early notice of intent to send their child to a non-designated but approved school in the coming year. The district will pay the lesser of three amounts but never greater than its average per-pupil tuition.

For those students who are state placed students – those in legal or temporary custody of the department of children and families – the bill recognizes that children learn best when learning is not interrupted. Therefore, if a student is being educated in one school/district, and is returned to their home district, the student will remain in the educating school/district until the end of the year. DCF will assume responsibility for the transportation of that student.

The ‘divided vote’ has created much discussion over the past year. The miscellaneous education bill states that the following items are not to be included in the divided vote question: (1) school construction that was approved prior to the moratorium, as well as interest paid on the debt,

(2) tuition for districts that do not have a school, (3) planning costs to merge small schools, (4) district’s share of 21st century after school programs, and (5) spending attributable to the costs of providing alternative education opportunities designed to encourage at-risk high school students to stay enrolled and graduate from high school whether contracted or within district.

It is becoming more clear that not all students learn the same way – some learn better with hands on, some better in independent study, and some need a more individualized approach. The miscellaneous education bill encourages innovative approaches to learning, and creates flexible pathways to graduation. Existing programs such as the Teen Parent Education program (Bennington’s Sunrise’s Opportunities Program) – long in need of an established funding mechanism – received permanency, and students in the High School Completion Program (presently carried out at the Tutorial Center) do not have to drop out of school in order to enroll in the program. A student develops a personalized graduation education plan, which includes career planning, workforce training, and transitioning assistance in addition to his/her course curriculum.

Working within existing educational support teams, this bill emphasizes the early intervention for those who are most at risk of not completing high school. Recognition and establishing early assistance for students as early as third grade, again at 5th grade, and upon entrance into a high school environment, hopefully will not allow any student to fall behind in school. Some help can be on a temporary, transitional, or long-term basis. The object is to get the help a student needs in order for the student to feel successful in school.

As high school drop out rates across the state and country rise, many professionals indicate that truancy rates are also on the rise. If students are not getting to school, they get further behind. A section of the Miscellaneous Education Bill requires the department of education, state attorney’s offices, and judges to develop model uniform truancy protocols for districts.

Another bill, H.405, requires the state colleges, UVM, Vermont’s independent colleges, and the department of education to come together to look at the issue of barriers to success. Jointly, the colleges and DOE will develop and report on strategies to expand educational opportunities for students in order that they might succeed in elementary and secondary schools and post-secondary education.

The Capital Bill: Investing in Vermont

This year Vermont will invest in state and municipal infrastructure, provide jobs, and strengthen the economic development of the state through its annual Capital Bill. The legislation incorporates federal stimulus money (ARRA) with the annual bond so that the total infrastructure spending will be over $109,000,000.

Vermont will construct an urgently needed forensics lab in Waterbury, will complete the renovations of the Vermont Veterans Home here in Bennington, and will complete another phase of the construction of the archives facility in Middlesex. In addition to these specific building projects, major maintenance projects to state buildings will be undertaken across the state that employ many Vermonters.

The federal stimulus money has allowed us to allocate over $19 million to wastewater treatment projects, and another $19 million to drinking water projects. Having access to this financing is critical as we will be able to assist many towns with these improvements. Towns will be in a better position to undertake significant economic development with water and sewer infrastructure in place.

The Vermont Investment Package outlined in the Capital Bill targets infrastructure investment and job creation in an even more specific way. About $6 million will go to Forest & Parks for maintenance and expansion of facilities; a portion of the work will likely include summer jobs for young people – like a Vermont Civilian Conservation Corps. There will also be $1 million for the standard Building Communities Grants and $1 million to create transitional and affordable housing.

The backlog of school construction funding owed to towns for past projects will continue to be paid down. This year we were able to make a total of $10 million in payments. The list of schools to receive payments and the amounts of those payments were entirely based on recommendations by the Department of Education using criteria related to the date of the project, the portion of payment already received, and other such considerations. Over the next three years we will continue to work our way down the list of the schools that are still owed $32 million. There is still a moratorium on new school construction project financing until the $32 million has been paid and a plan for a sustainable method of school construction funding is in place.

The signed version of the Capital Bill includes resolution of the Bennington State Office Building. The 1970s section of the building will be demolished; the 1990 section will be retrofitted. In the interim, the Agency of Human Services will relocate to 210 South Street until facilities are ready; the judiciary will remain in the “trailers”. There was a survey completed by state workers that had a large impact on this decision.

What a session!