Thumbnails Outlines
House Calendar
Wednesday, January 22, 2014
16th DAY OF THE ADJOURNED SESSION
House Convenes at 1:00 P.M.
TABLE OF CONTENTS
Page No.
ACTION CALENDAR
Third Reading
H. 559
Membership on the Building Bright Futures Council ....................... 135
NOTICE CALENDAR
Committee Bill for Second Reading
H. 655
Fiscal year 2014 budget adjustments ................................................. 135
Rep. Heath for Appropriations
Favorable with Amendment
H. 563
Captive insurance laws and accreditation standards ......................... 135
Rep. Bouchard for Commerce and Economic Development
H. 596
The conversion of assets of a nonprofit hospital ............................... 139
Rep. Dickinson for Commerce and Economic Development
Favorable
H. 350
The posting of medical unprofessional conduct decisions and to
investigators of alleged unprofessional conduct ............................................ 140
Rep. Till for Health Care
Committee of Conference Report
S. 41
An act relating to water and sewer service ........................................... 140
- 135 -
ORDERS OF THE DAY
ACTION CALENDAR
Third Reading
H. 559
An act relating to membership on the Building Bright Futures Council
NOTICE CALENDAR
Committee Bill for Second Reading
H. 655
An act relating to fiscal year 2014 budget adjustments.
(Rep.
Heath
of
Westford
will
speak
for
the
Committee
on
Appropriations.)
Favorable with Amendment
H. 563
An act relating to captive insurance laws and accreditation standards
Rep. Bouchard of Colchester,
for the Committee on
Commerce and
Economic Development,
recommends the bill be amended by striking all after
the enacting clause and inserting in lieu thereof the following:
* * * Dormant Captive Insurance Companies * * *
Sec. 1.
8 V.S.A. § 6024 is added to read:
§ 6024.
DORMANT CAPTIVE INSURANCE COMPANIES
(a)
As used in this section, unless the context requires otherwise, “dormant
captive
insurance
company”
means
a
pure
captive
insurance
company
which has:
(1)
at no time, insured controlled unaffiliated business;
(2)
ceased transacting the business of insurance, including the issuance
of insurance policies; and
(3)
no
remaining
liabilities
associated
with
insurance
business
transactions, or insurance policies issued prior to the filing of its application for
a certificate of dormancy under this section.
(b)
A pure captive insurance company domiciled in Vermont which meets
the criteria of subsection (a) of this section may apply to the Commissioner for
- 136 -
a certificate of dormancy.
The certificate of dormancy shall be subject to
renewal every five years and shall be forfeited if not renewed within such time.
(c)
A dormant captive insurance company which has been issued a
certificate of dormancy shall:
(1)
possess and thereafter maintain unimpaired, paid-in capital and
surplus of not less than $25,000.00;
(2)
prior to March 15 of each year, submit to the Commissioner a report
of its financial condition, verified by oath of two of its executive officers, in a
form as may be prescribed by the Commissioner; and
(3)
pay a license renewal fee as provided in subsection 6002(d) of this
chapter.
(d)
A dormant captive insurance company shall not be subject to or liable
for the payment of any tax under section 6014 of this chapter.
(e)
A dormant captive insurance company shall apply to the Commissioner
for approval to surrender its certificate of dormancy and resume conducting the
business of insurance prior to issuing any insurance policies.
(f)
A certificate of dormancy shall be revoked if a dormant captive
insurance company no longer meets the criteria of subsection (a) of this
section.
(g)
The
Commissioner
may
establish
guidelines
and
procedures
as
necessary to carry out the provisions of this section.
* * * Risk Retention Groups; Producer Controlled Insurers * * *
Sec. 2.
8 V.S.A. § 4815(6) is amended to read:
(6) “Licensed insurer” or “insurer” means any person, firm, association
or corporation duly licensed to transact an insurance business in this State.
The following are not licensed insurers for the purposes of this subchapter:
(A)
all
risk
retention
groups
as
defined
in
the
Superfund
Amendments Reauthorization Act of 1986, Pub. L. No. 99-499, 100 Stat. 1613
(1986) and the Risk Retention Act, 15 U.S.C. § 3901 et seq. (1982 & Supp.
1986) and chapter 142 of this title;
(B)
all residual market pools and joint underwriting authorities or
associations; and
(C)(B)
all captive insurers as defined in chapter 141 of this title,
except risk retention groups.
- 137 -
Sec. 3.
8 V.S.A. chapter 142A is amended to read:
CHAPTER
142A.
RISK
RETENTION
GROUP
MANAGING
GENERAL
AGENTS
AND,
REINSURANCE
INTERMEDIARIES,
AND PRODUCER CONTROLLED INSURERS
* * *
Sec. 4.
8 V.S.A. § 6070 is amended to read:
§ 6070.
APPLICATION OF CHAPTER
(a)
This chapter applies to risk retention groups domiciled in this State
operating under the provisions of chapters 141 and 142 of this title and to
persons serving as managing general agents for such risk retention groups.
(b)
The provisions of chapter 131, subchapter 2 of this title, pertaining to
producer controlled insurers, shall apply to risk retention groups chartered in
this State.
* * * Captive; Reciprocal Insurer; Assessments; Exemption * * *
Sec. 5.
8 V.S.A. § 6006(j) is amended to read:
(j)
Captive insurance companies formed as reciprocal insurers under the
provisions of this chapter shall have the privileges and be subject to the
provisions of chapter 132 of this title in addition to the applicable provisions of
this chapter.
In the event of a conflict between the provisions of chapter 132
and the provisions of this chapter, the latter shall control. However, in
approving assessments levied upon subscribers of a captive insurance company
formed as a reciprocal insurer, the Commissioner may exempt the company
from any provision of sections 4850 (assessments), 4851 (time limit for
assessments), and 4852 (aggregate of liability) of chapter 132.
To the extent a
reciprocal insurer is made subject to other provisions of this title pursuant to
chapter 132, such provisions shall not be applicable to a reciprocal insurer
formed
under
this
chapter
unless
such
provisions
are
expressly
made
applicable to captive insurance companies under this chapter.
* * * Separate Account Assets; Delinquency * * *
Sec. 6.
8 V.S.A. § 6018 is amended to read:
§ 6018.
DELINQUENCY
Except as otherwise provided in this chapter, the terms and conditions set
forth in chapter 145 of this title shall apply in full to captive insurance
companies formed or licensed under this chapter; however, the assets of a
separate account established under subsection 6006(p) of this chapter shall not
- 138 -
be used to pay any expenses or claims other than those attributable to such
separate account.
* * * Incorporated Protected Cell as Reciprocal Insurer * * *
Sec. 7.
8 V.S.A. § 6032 is amended to read:
§ 6032.
DEFINITIONS
As used in this subchapter, unless the context requires otherwise:
(1)
“Incorporated protected cell” means a protected cell that is
established as a corporation, mutual corporation, nonprofit corporation with
one or more members, or limited liability company, or reciprocal insurer
separate from the sponsored captive insurance company of which it is a part.
* * *
Sec. 8.
8 V.S.A. § 6034a(d) is amended to read:
(d)
It is the intent of the General Assembly under this section to provide
sponsored captive insurance companies, including those licensed as special
purpose financial insurance companies under subchapter 4 of this chapter, with
the option to establish one or more protected cells as a separate corporation,
mutual corporation, nonprofit corporation, or limited liability company, or
reciprocal insurer.
This section shall not be construed to limit any rights or
protections applicable to protected cells not established as corporations, mutual
corporations,
nonprofit
corporations, or limited
liability
companies,
or
reciprocal insurers.
* * * Risk Based Capital for Risk Retention Groups * * *
Sec. 9.
8 V.S.A. § 6052(f) is added to read:
(f)
The provisions of chapter 159 of this title (risk based capital for
insurers) shall apply to risk retention groups chartered in this State, except that
the Commissioner may elect not to take regulatory action as otherwise required
by sections 8303–8306 of chapter 159 of this title, provided at least one of the
following conditions exist:
(1)
The Commissioner determines that the risk retention group’s
members or sponsoring organization, or both, are sufficiently capitalized to
support the operations of the risk retention group.
As required by the
Commissioner, the members or sponsoring organization, or both, shall provide
evidence of:
(A)
an investment grade credit rating from a nationally recognized
statistical rating organization or rating of A- or better by the A. M. Best
Company;
- 139 -
(B)
an excess of assets over liabilities of at least $100 million; or
(C)
an excess of assets over liabilities of at least 10 times the risk
retention group’s largest net retained per occurrence limit.
(2)
Each policyholder qualifies as an industrial insured under the law of
his or her home state, or under Vermont law, whichever the Commissioner
determines to be more stringent.
(3) The risk retention group’s certificate of authority was issued prior to
January 1, 2011 and, based on a minimum of five years of solvent operation, is
specifically exempted from the requirements for mandatory action in writing
by the Commissioner.
* * * Effective Date * * *
Sec. 10.
EFFECTIVE DATE
This act shall take effect on passage.
( Committee Vote: 11-0-0)
H. 596
An act relating to the conversion of assets of a nonprofit hospital
Rep. Dickinson of St. Albans Town,
for the Committee on
Commerce
and Economic Development,
recommends the bill be amended as follows:
In Sec. 1, 18 V.S.A. § 9420(e) (action by the Attorney General), by striking out
subdivision (1)(B) in its entirety and by inserting in lieu thereof a new
subdivision (1)(B) to read as follows:
(B)
The Court may order appropriate relief in such circumstances,
including avoidance of the conversion or transfer of the converted assets or
proceeds or the amount of any private inurement to a person or party for use
consistent with the purposes for which the assets were held prior to the
conversion, a penalty of up to $1 million, and the award of costs of
investigation
and
prosecution
under
this
subsection
(e),
including
the
reasonable value of legal services.
(2)
In determining whether to grant relief under this subsection, and the
nature of such relief, the Court shall consider:
(A)
whether the violation was willful;
(B)
whether any person has derived, or may derive, an economic
benefit from the conversion;
(C)
whether the purposes for which the assets had been held by the
nonprofit hospital have been frustrated by the violation;
- 140 -
(D)
whether the interests of the public or the community served by
the nonprofit hospital would be jeopardized by voiding the conversion; and
(E)
how any monetary penalty imposed would affect the community
served by the nonprofit hospital.
( Committee Vote: 11-0-0)
Favorable
H. 350
An act relating to the posting of medical unprofessional conduct decisions
and to investigators of alleged unprofessional conduct
Rep. Till of Jericho
, for the Committee on
Health Care,
recommends the
bill ought to pass.
( Committee Vote: 11-0-0)
Committee of Conference Report
S. 41
An act relating to water and sewer service
TO THE SENATE AND HOUSE OF REPRESENTATIVES:
The Committee of Conference to which were referred the disagreeing votes
of the two Houses upon Senate Bill entitled:
S. 41
An act relating to water and sewer service
Respectfully report that they have met and considered the same and
recommend that the bill be amended by striking all after the enacting clause
and inserting in lieu thereof the following:
Sec. 1.
24
V.S.A. § 5143 is amended to read:
§ 5143.
DISCONNECTION OF SERVICE
* * *
(c)
The tenant of a rental dwelling noticed for disconnection due to the
delinquency of the ratepayer shall have the right to request and pay for
continued service from the utility or reconnection of water and sewer service
for the rental dwelling, which the utility shall provide.
If any water and sewer
charges or fees are included in the tenant’s rent, the tenant may deduct the cost
of any water and sewer service charges or fees paid to the municipality from
his or her rent pursuant to 9 V.S.A. § 4459.
Under such circumstances, the
- 141 -
utility shall not require the tenant to pay any arrearage greater than one billing
cycle.
Sec. 2. EFFECTIVE DATE
This act shall take effect on passage.
Rep. Ronald E. Hubert
Rep. Linda J. Martin
Rep. Anne H. Mook
Committee on the part of the House
Sen. Anthony Pollina
Sen. Eldred French
Sen. Joseph C. Benning
Committee on the part of the Senate
For Informational Purposes
H.524
Representative Stuart of Brattleboro moves that the House concur in the
Senate Proposal of Amendment with further amendment as follows:
First:
By deleting Sec. 34 (16 V.S.A. § 254; records check for educator
licensure) in its entirety and inserting in lieu thereof the following:
Sec. 34.
[Deleted.]
Second:
By deleting Sec. 85 (16 V.S.A. § 706g; designation of union
school districts) in its entirety and inserting in lieu thereof the following:
Sec. 85.
[Deleted.]
Third:
By deleting Sec. 105 (16 V.S.A. § 1045; driver training course) in
its entirety and inserting in lieu thereof the following:
Sec. 105.
[Deleted.]
Fourth:
By deleting Secs. 109 (16 V.S.A. § 1049; Adult Diploma Program
and General Education Development Program) and 110 (16 V.S.A. § 1049a;
High School Completion Program) in their entirety and inserting in lieu thereof
the following:
Sec. 109.
[Deleted.]
Sec. 110.
[Deleted.]
- 142 -
Fifth:
By deleting Sec. 130 (16 V.S.A. § 1262a; grants for school meals) in
its entirety and inserting in lieu thereof the following:
Sec. 130.
[Deleted.]
Sixth:
By deleting Sec. 135 (16 V.S.A. § 1431(b); concussion guidelines)
in its entirety and inserting in lieu thereof the following:
Sec. 135.
[Deleted.]
Seventh:
By deleting Sec. 146 (16 V.S.A. § 1541a; career technical
education) in its entirety and inserting in lieu thereof the following:
Sec. 146.
[Deleted.]
Eighth:
By deleting Secs. 215 and 216 (16 V.S.A. § 3224; treasurer’s
report; grammar school lands) in their entirety and inserting in lieu thereof the
following:
Sec. 215.
[Deleted.]
Sec. 216.
[Deleted.]
Ninth:
By deleting Sec. 229 (16 V.S.A. § 3851(c); definition of “eligible
institution”) in its entirety and inserting in lieu thereof the following:
Sec. 229.
[Deleted.]
Tenth:
By deleting Sec. 237 (16 V.S.A. § 4011; education payments) in its
entirety and inserting in lieu thereof the following:
Sec. 237.
[Deleted.]
Eleventh:
By deleting Sec. 289 (33 V.S.A. § 703(b); membership of
Alcohol and Drug Abuse Council) in its entirety and inserting in lieu thereof
the following:
Sec. 289.
[Deleted.]
Public Hearings
January 28, 2014 - Room 11 - 6:00-8:00 PM - Current Use - Senate Special
Committee on Current Use
January 30, 2014 - Room 11 – 5:00-7:00 PM - S. 287 Involuntary Treatment
and Medication - Senate Judiciary and Health and Welfare
Monday, February 10, 2014, 4:00 - 6:30 p.m. –
The House and Senate
Committees on Appropriations will hold a joint public hearing on Vermont
Interactive Technologies (V.I.T.) to give Vermonters throughout the state an
opportunity to express their views about the state budget for fiscal year 2015.
- 143 -
All 13 V.I.T. sites will be available for the hearing: Bennington, Brattleboro,
Johnson, Lyndonville, Middlebury, Montpelier, Newport, Randolph
Center, Rutland, Springfield, St. Albans, White River Junction and Williston.
V.I.T.'s web site has an up-to-date location listing, including driving directions,
addresses and telephone numbers,
http://www.vitlink.org/
.
The budget hearing will be VIEWABLE via the Internet if your computer has
Flash-based streaming capabilities. Some mobile devices may require
additional software.
Go to
www.vitlink.org/streamingmedia/vtcvitopen.php
.
The Governor’s budget proposal can be viewed at the Department of Finance’s
website:
http://finance.vermont.gov/state_budget/rec
. For information about the
format of this event or to submit written testimony, call the House
Appropriations Committee office at 802/828-5767 or email
tutton@leg.state.vt.us
. Requests for interpreters should be made to the office
by 3:00 p.m. on Monday, January 27, 2014.
Information Notice
Deadline for Introducing Bills
Pursuant to Rule 40(b) of the Rules and Orders of the Vermont House of
Representatives, during the second year of the biennium, except with the prior
consent of the Committee on Rules, no member may introduce a bill into the
House drafted in standard form after the last day of January.
In order to meet this deadline all sign out sheets must be returned to
Legislative Council by the close of business, Tuesday, January 28, 2014.
Pursuant to Rule 40(c) during the second year of the biennium, except with
the prior consent of the Committee on Rules, no committee, except the
Committees on Appropriations, Ways and Means or Government Operations,
may introduce a bill drafted in standard form after the last day of March
(March 31, 2014).
The Committees on Appropriations and Ways and Means
bill may be drafted in standard form at any time, and Government Operations
bills pertaining to city or town charters, may be drafted in standard form at any
time.