Tuesday, March 25, 2008 447

Journal of the Senate

______

Tuesday, March 25, 2008

The Senate was called to order by the President.

Devotional Exercises

Devotional exercises were conducted by the Reverend Terry Dorsett of Barre.

Pledge of Allegiance

Pages Callie-Rae Cashin and Eliza Dorney then led the members of the Senate in the pledge of allegiance.

Message from the House No. 39

A message was received from the House of Representatives by Ms. Wrask, its Second Assistant Clerk, as follows:

Mr. President:

I am directed to inform the Senate the House has passed bills of the following titles:

H. 257. An act relating to the codification of existing community justice centers.

H. 436. An act relating to miscellaneous amendments to local election and municipal government laws.

H. 748. An act relating to permitting students to possess and self-administer medicine.

H. 883. An act relating to miscellaneous amendments to Vermont’s public retirement systems.

H. 884. An act relating to ensuring quality in prekindergarten education programs offered by or through school districts.

H. 885. An act relating to developing consistent measurement standards for economic growth.

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

The House has adopted a joint resolution of the following title:

J.R.H. 56. Joint resolution honoring municipal public works employees and designating May 18-24 as Public Works Week in Vermont.

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

The House has considered a joint resolution originating in the Senate of the following title:

J.R.S. 58. Joint resolution relating to weekend adjournment.

And has adopted the same in concurrence.

The Governor has informed the House of Representatives that on the twenty-first day of March, 2008, he approved and signed a bill originating in the House of the following title:

H. 875. An act relating to the sale of real property or transmissions facilities by certain regulated generators of electricity.

The House has adopted concurrent resolutions of the following titles:

H.C.R. 236. Concurrent resolution honoring the outstanding work of child care providers in Vermont.

H.C.R. 237. Concurrent resolution honoring the half-century active Bennington firefighters.

H.C.R. 238. Concurrent resolution congratulating the Missisquoi Valley Union High School Thunderbirds 2008 Division II girls’ ice hockey championship team.

H.C.R. 239. Concurrent resolution congratulating the 2008 Enosburg Falls High School Hornets Division III girls’ basketball championship team.

H.C.R. 240. Concurrent resolution congratulating the 2008 Essex High School Hornets Division I cheerleading team.

H.C.R. 241. Concurrent resolution congratulating the 2008 Essex High School Hornets’ Division I championship boys’ ice hockey team.

H.C.R. 242. Concurrent resolution congratulating the Vermont Ice Storm on winning the 2007 Empire Football League championship and being named the 2007 American Football Association Triple-A national champions.

H.C.R. 243. Concurrent resolution honoring the outstanding winter road clearance performance of the agency of transportation highway crews.

H.C.R. 244. Concurrent resolution in memory of John D. Picard.

H.C.R. 245. Concurrent resolution congratulating the 2008 Vergennes Union High School Commodores Division II cheerleading champions.

H.C.R. 246. Concurrent resolution in memory of Charlie Bristow.

H.C.R. 247. Concurrent resolution congratulating the 2008 Milton High School Yellowjackets Division II girls’ basketball championship team.

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

The House has considered concurrent resolutions originating in the Senate of the following titles:

S.C.R. 37. Concurrent resolution recognizing the outstanding role of Vermont Transit and its employees in the state's transportation history.

S.C.R. 38. Senate concurrent resolution congratulating the Burlington Seahorses’ 2008 Division I championship and undefeated boys’ basketball team.

And has adopted the same in concurrence.

Bills Referred

House bills of the following titles were severally read the first time and referred:

H. 257.

An act relating to the codification of existing community justice centers.

To the Committee on Judiciary.

H. 436.

An act relating to miscellaneous amendments to local election and municipal government laws.

To the Committee on Government Operations.

H. 748.

An act relating to permitting students to possess and self-administer medicine.

To the Committee on Education.

H. 883.

An act relating to miscellaneous amendments to Vermont’s public retirement systems.

To the Committee on Government Operations.


H. 884.

An act relating to ensuring quality in prekindergarten education programs offered by or through school districts.

To the Committee on Education.

H. 885.

An act relating to developing consistent measurement standards for economic growth.

To the Committee on Economic Development, Housing and General Affairs.

Joint Resolution Placed on Calendar

J.R.H. 56.

Joint resolution originating in the House of the following title was read the first time and is as follows:

Joint resolution honoring municipal public works employees and designating May 18–24 as Public Works Week in Vermont.

Whereas, much of the highway and bridge network in Vermont is municipally owned, and the responsibility for its maintenance is assigned to local public works departments, and

Whereas, the regular duties of city and town public works departments’ employees encompass general roadway and bridge maintenance on a year-round basis, and

Whereas, when extremely inclement weather strikes, such as a severe snowstorm or a thunderstorm whose elements include high velocity winds, municipal public works department crews are called upon to perform near-heroic tasks under the worst possible climatic conditions and not infrequently in the middle of the night, and

Whereas, these special but essential jobs can range from removing snow from the highway while blowing drifts are inhibiting steady progress to supporting utility crews removing trees entangled in dangerously electrified cables, and

Whereas, on May 14, the Vermont Municipal Highway Association will hold its annual field day and expo at the Barre Auditorium, and

Whereas, local public works crews from many communities will attend this much-anticipated event, and

Whereas, the Vermont Municipal Highway Association event also serves as a showcase for vendors to exhibit new products that public works staff can examine and consider purchasing, and

Whereas, May is also an important month for these dedicated municipal employees as the week of May 18–24 is being observed as Public Works Week in order to recognize these all-too-often unsung heroes who maintain highways, bridges, and other essential municipal infrastructure 365 days a year, now therefore be it

Resolved by the Senate and House of Representatives:

That the general assembly honors Vermont’s outstanding municipal public works employees and designates May 18–24 as Public Works Week in Vermont, and be it further

Resolved: That the secretary of state be directed to send a copy of this resolution to Todd Law, president of the Vermont Municipal Highway Association in Montpelier and to Barre Town Engineer Harry Hinrichsen.

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

Bill Called Up

S. 344.

Senate bill of the following title was called up by Senator Carris, and, under the rule, placed on the Calendar for action tomorrow:

An act relating to internet and mail order sales of tobacco products.

Bills Passed

Senate bills of the following titles were severally read the third time and passed:

S. 233.

An act relating to temporary officiants for marriages and civil unions.

S. 261.

An act relating to phthalates in products for young children.

S. 271.

An act relating to child support for children with disabilities.


S. 294.

An act relating to the optimal siting of a dry cask storage facility for spent nuclear fuel rods.

S. 301.

An act relating to assaults on law enforcement officers and to hate-motivated crimes against law enforcement officers and firefighters.

S. 322.

An act relating to dairy promotion council.

S. 366.

An act relating to the administration of the voter’s oath or affirmation.

S. 368.

An act relating to the addition of new types of disinfectants to public water systems.

Rules Suspended; Bills Messaged

On motion of Senator Campbell, the rules were suspended, and the following bills were ordered messaged to the House forthwith:

S. 233, S. 261, S. 271, S. 294, S. 301, S. 322, S. 366 and S. 368.

Senator Mazza Assumes the Chair

Third Readings Ordered

H. 557.

Senator McCormack, for the Committee on Natural Resources and Energy, to which was referred House bill entitled:

An act relating to postponing the sunset of the fish and wildlife board’s authority to adopt rules regulating the deer herd.

Reported that the bill ought to pass in concurrence.

Thereupon, the bill was read the second time by title only pursuant to Rule43, and third reading of the bill was ordered.

H. 788.

Senator Hartwell, for the Committee on Natural Resources and Energy, to which was referred House bill entitled:

An act relating to awarding moose permits to Vermont veterans of Afghanistan and Iraq.

Reported that the bill ought to pass in concurrence.

Thereupon, the bill was read the second time by title only pursuant to Rule43, and third reading of the bill was ordered.

Consideration Postponed

S. 297.

Senate bill entitled:

An act relating to clarifying the definition of “stiff hitch” in the motor vehicle statutes.

Was taken up.

Thereupon, without objection consideration of the bill was postponed until tomorrow.

Bill Amended; Third Reading Ordered

S. 345.

Senator Illuzzi, for the Committee on Economic Development, Housing and General Affairs, to which was referred Senate bill entitled:

An act relating to lowering the cost of workers’ compensation insurance.

Reported recommending that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following:

Sec. 1. FINDINGS; PURPOSE

(a) The general assembly finds:

(1) An increasing number of employers in Vermont and nationwide are improperly classifying individuals they hire as “independent contractors,” even when those workers should be classified as “employees” as these terms are legally defined.

(2) Employers may misclassify employees in an attempt to avoid their legal obligations under federal and state labor and tax laws, including laws governing minimum wage, overtime, prevailing wage, unemployment insurance, workers’ compensation insurance, wage payment, and income tax.

(3) Employee misclassification has a significant adverse impact on the residents, businesses, and economy in Vermont because it deprives vulnerable workers of legal protections and benefits; reduces compliance with employment and safety standards; gives employers who misclassify employees an improper competitive advantage over law-abiding businesses; deprives Vermont of substantial revenues; and imposes indirect costs from decreased legitimate business activity and increased demand for social services.

(4) A recent survey of workers’ compensation insurers conducted in compliance with No. 57 of the Acts of 2007 reveals that misclassification is a significant problem that may add 10 to 20 percent or more to the cost of workers’ compensation.

(5) Historically, compliance and enforcement have been divided among various agencies, reducing efficiency and effectiveness. Improved interagency cooperation, sharing information, and joint enforcement of serious violations are the most effective approaches to reducing incidents of employee misclassification.

(6) Workers’ compensation premiums for farmers are going up, while most every other employer category is going down. Farming is inherently more hazardous than many other trades and professions, and the pool of farmers to spread the risk is very small.

(7) Agricultural workers suffer a higher frequency and more serious work injuries than others, particularly those working on farms with hoofed animals.

(8) Providing incentives for improved farm safety, through comprehensive training programs and extensive outreach, will go a long way toward slowing workers’ compensation premium rates for farmers.

(9) While a reduction in workers’ compensation benefits across the board may lower rates for every one including farmers for the short run, such a reduction would be at the expense of injured workers, while providing little incentive for improving safety for the long run.

(b) Therefore, it is the purpose of this act to address the problems of employee misclassification and farm safety and make other positive changes in workers’ compensation laws that are intended to reduce the cost of workers’ compensation.

* * * Fraud and Misclassification * * *

Sec. 2. 8 V.S.A. § 4750(b) is amended to read:

(b) The commissioner may require an insurer to file annually its anti-fraud plan with the department and an annual summary of the insurer’s anti-fraud activities and results, including misclassification and miscoding. A workers’ compensation insurer shall file an anti-fraud plan with the department of labor, including information about fraud investigations, referrals, or prosecutions involving Vermont workers’ compensation claims, misclassifications, and miscoding, if requested by the commissioner of labor. Information regarding fraud investigations and referrals shall not be public unless the commissioner of labor or the attorney general commences administrative or criminal proceedings.

Sec. 3. 13 V.S.A. § 2031 is amended to read:

§ 2031. INSURANCE FRAUD

(a) Definitions. As used in this section:

* * *

(2) “Insurance policy” has the same meaning as in 8 V.S.A. § 4722(3) and includes a workers’ compensation policy issued pursuant to chapter 9 of Title 21.

(3) “Insurer” has the same meaning as in 8 V.S.A. § 4901(2) and includes a workers’ compensation insurer pursuant to chapter 9 of Title 21.

(4) “Person” means a natural person, company, corporation, unincorporated association, partnership, professional corporation, agency of government, or any other entity.

* * *

(g) This section shall not apply to workers’ compensation fraud. Cases involving workers’ compensation fraud shall be prosecuted under section 2024 of this title.

(h) The public policy of this state is that the standards of this section shall not apply or be introduced into evidence in any civil or administrative proceeding, whether to argue public policy, materiality, or for any other purpose.

Sec. 4. CREATION OF WORKERS’ COMPENSATION EMPLOYEE CLASSIFICATION TASK FORCE

(a) There is created a workers’ compensation classification task force to be composed of 14 members to include the following members:

(1) The commissioner of taxes or designee.

(2) The commissioner of labor or designee.

(3) The commissioner of banking, insurance, securities, and health care administration or designee.

(4) The attorney general or designee.

(5) The auditor of accounts or designee.