913 TUESDAY, APRIL 20, 2004

Journal of the House

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TUESDAY, APRIL 20, 2004

At ten o'clock in the forenoon the Speaker called the House to order.

Devotional Exercises

Devotional exercises were conducted by Representative Kilmartin of Newport City.

Message from Governor

A message was received from His Excellency, the Governor, by Mr. Neale Lunderville, Secretary of Civil and Military Affairs, as follows:

Mr. Speaker:

I am directed by the Governor to inform the House that on the nineteenth day of April, 2004, he approved and signed a bill originating in the House of the following title:

H. 770 An act relating to the unorganized towns and gores of Essex County.

Pledge of Allegiance

Page Lukas Petersen of Burlington led the House in the Pledge of Allegiance.

Joint Resolution Adopted

J.R.H. 61

Reps. Zuckerman of Burlington, Livingston of Manchester, Sweaney of Windsor, Adams of Hartland, Anderson of Woodstock, Aswad of Burlington, Atkins of Winooski, Botzow of Pownal, Branagan of Georgia, Brooks of Montpelier, Darrow of Dummerston, Donahue of Northfield, Donovan of Burlington, Dostis of Waterbury, Edwards of Brattleboro, Emmons of Springfield, Endres of Milton, Fallar of Tinmouth, Fisher of Lincoln, French of Randolph, Head of South Burlington, Hummel of Underhill, Kiss of Burlington, Maier of Middlebury, Marron of Stowe, Martin of Springfield, Masland of Thetford, McCullough of Williston, McLaughlin of Royalton, Miller of Shaftsbury, Nease of Johnson, Nuovo of Middlebury, Obuchowski of Rockingham, Partridge of Windham, Perry of Richford, Pugh of South Burlington, Reese of Pomfret, Rusten of Halifax, Seibert of Norwich, Shand of Weathersfield, Sharpe of Bristol, Shouldice of Calais, Smith of Morristown, Symington of Jericho, Tracy of Burlington, Trombley of Grand Isle and Vincent of Waterbury offered a joint resolution, entitled

Joint resolution commemorating equal pay day;

Whereas, 40 years after the passage of the Equal Pay Act and Title VII of the Civil Rights Act, women and people of color continue to suffer the consequences of inequitable pay differentials, and

Whereas, a 2003 Congressional report by the General Accounting Office (the investigative arm of Congress) revealed that the wage gap is due, in part, to women traditionally working at jobs that pay less as well as dropping out of the work force for longer periods of time than men, and

Whereas, even after accounting for these adjustments, the report indicates that women still earn a national average of 20.3 percent less than men, and

Whereas, the report quoted experts’ speculation about continued discrimination against female workers and a causal link with an outdated work life structure, and

Whereas, according to an analysis of data in over 300 classifications provided by the U.S. Bureau of Labor Statistics in 2001, women earn less in every occupational classification for which enough data is available, including occupations dominated by women such as cashiers, retail sales, registered nurses, and teachers, and

Whereas, workers are retaliated against for sharing wage information, and

Whereas, wage inequities result in a significant reduction in retirement income because both Social Security and traditional pension formulas are calculated based on earnings and the amount paid into the system, and

Whereas, currently, women retirees receive only onehalf the average pension benefits that men receive, and

Whereas, in 2002, the wage gap (or women’s full-time annual earnings as a percentage of men’s) in Vermont was 80.5 percent, and nationally, the wage gap results in a loss of $200 billion in annual income for American families, and

Whereas, lower wages for women can readily force them onto public assistance, especially when they support children, and

Whereas, women and men as equal partners in Vermont’s economy would dramatically raise family income and reduce poverty rates, and

Whereas, equal pay for equal work is at the heart of economic security for every Vermont woman and her family, and

Whereas, April is symbolic of the time in the following year that a woman must work to earn the wages paid to a man in the previous year, and

Whereas, to promote public awareness of this continuing problem, April 20, 2004 has been designated as Equal Pay Day, and

Whereas, the goal of equal pay for equal work and the battle against wage discrimination must continue to be a priority for us all, now therefore be it

Resolved by the Senate and House of Representatives:

That the General Assembly, in commemoration of Equal Pay Day, reaffirms its continuing support that all workers, regardless of gender, should be compensated at equal pay levels for equal work, and be it further

Resolved: That the Secretary of State be directed to send a copy of this resolution to the Commission on Women, to the Vermont Federation of Business and Professional Women and to the members of the Vermont Congressional Delegation.

Which was read and adopted on the part of the House.

Joint Resolution Placed on Calendar

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

J.R.S. 59

By Senators Doyle, Ayer, Campbell, Canns, Collins, Condos, Cummings, Dunne, Gander, Gossens, Kittell, Leddy, Lyons, MacDonald, Mazza, Miller, Munt, Scott, Snelling, Welch and White,

Joint resolution urging the United States Congress to enact the proposed “Farm to Cafeteria Projects Act”

Whereas, in the past 30 years, childhood obesity rates in the United States have doubled and the comparable rates among adolescents have trebled due to poor eating habits, and

Whereas, these practices can contribute to an increased likelihood of developing diabetes, high blood pressure, high blood cholesterol, and clogging of the arteries, and

Whereas, school cafeterias serve millions of children breakfast, snacks, and lunch every day and struggle to maintain services in light of diminished budgets at the local, state, and federal levels, and

Whereas, in May 2003, the Economic Research Service of the United States Department of Agriculture released an evaluation of the School Fruit and Vegetable Pilot Program which, according to the report, was designed to change immediately children’s fruit and vegetable consumption, improve their health, and create a healthier school environment and a positive model for children’s diets, and

Whereas, agriculture sustains rural communities, protects open space, creates scenic vistas, and protects water recharge areas, and

Whereas, the northeast states have a traditional system of small and midsized agriculture producers located in close proximity to towns, villages, and urban centers where the majority of the 58 million consumers reside, and

Whereas, programs which link local farms to school cafeterias are reconnecting America’s now predominantly urban and suburban population with local agriculture, and

Whereas, the United States Congress is currently considering HR2626, the “Farm to Cafeteria Projects Act,” and

Whereas, passage of this bill would provide $10 million annually for grants of up to $100,000.00 to school districts or nonprofit organizations to create farm to cafeteria projects and overcome the initial challenges schools face in purchasing locally-grown food, now therefore be it

Resolved by the Senate and House of Representatives:

That the General Assembly urges that the United States Congress adopt the “Farm to Cafeteria Project Act” or similar legislation, and be it further

Resolved: That the secretary of state be directed to send a copy of this resolution to United States Secretary of Agriculture Ann Veneman and the members of the Vermont Congressional delegation.

Bill Referred to Committee on Ways and Means

S. 42

Senate bill, entitled

An act relating to creating an office of land recycling, and otherwise revising the brownfields reclamation program;

Appearing on the Calendar, affecting the revenue of the state, under the rule, was referred to the committee on Ways and Means.

Third Reading; Bills Passed

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

H. 774

House bill, entitled

An act relating to the charter of the city of Rutland;

H. 780

House bill, entitled

An act relating to insurance problems facing the agricultural industry of Vermont.

Third Reading; Bill Passed in Concurrence

With Proposal of Amendment

S. 190

Senate bill, entitled

An act relating to a vacancy on the prudential committee of an incorporated school district;

Was taken up, read the third time and passed in concurrence with proposal of amendment.

Bill Read Second Time; Consideration Interrupted by Recess

H. 759

Rep. Koch of Barre Town spoke for the committee on Health and Welfare.

Rep. Marron of Stowe, for the committee on Ways and Means, to which had been referred House bill, entitled

An act relating to improving access to health insurance in the small group markets;

Reported in favor of its passage when amended as follows:

First: By striking Secs. 1, 2, 3 and 7 in their entirety;

Second: By striking Secs. 4 and 5 and inserting new Secs. 4 and 5 to read:

* * * Small Business Health Care Tax Incentive Program * * *

Sec. 4. 32 V.S.A. § 5830e is added to read:

§ 5830e. TAX CREDITS; SMALL BUSINESS HEALTH INSURANCE

CREDIT

(a)(1) An eligible employer shall be entitled to a refundable health insurance credit against the tax imposed by section 5822 or 5832 of this title in an amount equal to the lesser of one-half of the employer’s expenditures for the cost of approved health benefit plan premiums in the taxable year, or $75.00 per month per employee policy.

(2) In the case of an eligible small employer, or an eligible employer who contributes at least 75 percent of the cost of approved health benefit plan premiums in the taxable year, the credit amount shall be equal to the lesser of one-half of the employer’s expenditures for the cost of approved health benefit plan premiums in the taxable year, or $100.00 per month per employee policy.

(3) The credit authorized by this section shall be allocated on a pro rata basis among the members of a pass-through entity.

(b) For purposes of this section:

(1) “Approved health benefit plan” means a health insurance plan approved by the commissioner of banking, insurance, securities and health care administration as complying with the requirements of this section.

(2) “Cost of approved health benefit plan premium” means the premium cost for a participating employee, based on a one-person policy, pro-rated for a part-time employee as a portion of a thirty-seven and one-half hour or forty-hour workweek.

(3) “Eligible employer” means an employer, including private nonprofit organizations qualified for tax exemption under section 501(c)(3) of the Internal Revenue Code as amended, which:

(A) employed 25 or fewer full-time-equivalent employees, on average for the three months preceding January 1 of the taxable year;

(B) pays in the taxable year at least 50 percent of cost of approved health benefit plan premiums for a high-deductible health insurance plan with a health savings account which meets the requirements of Section 123 of the Internal Revenue Code as amended, or a high-deductible plan with a qualified health reimbursement arrangement which meets the requirements of section 105 of the Internal Revenue Code as amended, which in either case covers eligible preventive care notwithstanding any deductible amount;

(C) contributes in the taxable year at least 50 percent of each employee’s deductible, based on a one-person policy and pro-rated for a part-time employee as a portion of a thirty-seven and one-half hour or forty-hour workweek; and

(D) for claims for credits pertaining to taxable years before 2007, has not paid for any portion of employee health insurance premium costs in the preceding 24 months.

(4) “Eligible small employer” means an eligible employer which employed five or fewer full-time-equivalent employees, on average for the three months preceding January 1 of the taxable year.

(5) “Full-time-equivalent employee” means the sum of hours worked in one week by all employees of the employer, divided by forty. For purposes of this calculation, no individual employee’s hours during the week in excess of forty shall be included in the sum.

(c) The commissioner of taxes and the commissioner of banking, insurance, securities, and health care administration may adopt by rule standards and procedures necessary to carry out the purposes of this section.

Sec. 5. Adjustment of Percent and Limitations

By January 15, 2006, the commissioner of taxes and the commissioner of banking, insurance, securities, and health care administration shall recommend to the general assembly amendments to the small business health insurance credit under 32V.S.A. § 5830e necessary to limit the cost of that credit to approximately $4million per year, in light of the expanded eligibility under 32 V.S.A. §5830e (b)(3)(D) if the credit continues in effect after 2006.

Third: By striking Sec. 18 and inserting a new Sec. 18 to read:

Sec. 18. EFFECTIVE DATE

This act shall take effect upon passage, except Sec. 4 of this act (health insurance tax credit) shall apply to purchases of employee health insurance in taxable years 2005 and 2006; and shall apply to purchases of employee health insurance in taxable years 2007, 2008 and 2009 only for employers who qualified for the credit in both 2005 and 2006 or in 2006; and 32 V.S.A. § 5830e is repealed effective January 1, 2011.

and by renumbering the sections to be numerically correct.

Rep. O’Donnell of Vernon, for the committee on Appropriations, recommended the bill ought to pass when amended as recommended by the committee on Ways and Means and when further amended as follows:

By striking Sec. 15 in its entirety.

The bill, having appeared on the Calendar one day for notice, was taken up and read the second time.

Pending the question, Shall the House amend the bill as recommended by the committee on Ways and Means?

Recess

At eleven o’clock and thirty minutes in the forenoon, the Speaker declared a recess until the fall of the gavel.

Afternoon

At one o’clock and thirty minutes in the afternoon, the Speaker called the House to order.

Consideration Resumed;

Bill Amended and Third Reading Ordered

H. 759

Consideration resumed on House bill, entitled

An act relating to improving access to health insurance in the small group markets;

Pending the recurring question, Shall the House amend the bill as recommended by the committee on Ways and Means? Rep. Symington of Jericho asked that the question be divided.