Title 16 — Education

title-1616 V.S.A.Code

The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated, provided as a convenience by the Vermont General Assembly. The official text is the printed Vermont Statutes Annotated published by LexisNexis.

Chapter 1 Administration Generally

Subchapter 1 General Provisions

§ 1 Right to equal educational opportunity

The right to public education is integral to Vermont’s constitutional form of government and its guarantees of political and civil rights. Further, the right to education is fundamental for the success of Vermont’s children in a rapidly-changing society and global marketplace as well as for the State’s own economic and social prosperity. To keep Vermont’s democracy competitive and thriving, Vermont students must be afforded substantially equal access to a quality basic education. However, one of the strengths of Vermont’s education system lies in its rich diversity and the ability for each local school district to adapt its educational program to local needs and desires. Therefore, it is the policy of the State that all Vermont children will be afforded educational opportunities that are substantially equal although educational programs may vary from district to district.

(Added 1997, No. 60, § 2, eff. June 26, 1997.)

§§ 2-6 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 11 Classifications and definitions

(a) As used in this title, unless the context otherwise clearly requires:

(1) “Secretary” means the Secretary of Education.

(2) “Electorate” means the qualified voters in a school district voting at a properly warned school district meeting.

(3) “Elementary education” means a program of public school education adapted to the needs of students in prekindergarten, kindergarten, and the first six grades.

(4) “Grades” means the division of the educational work of the public schools into 13 school year units beginning with kindergarten and thereafter numbered from one to 12 beginning with the lowest. The first six grades and kindergarten are the elementary grades. The last six grades are the high school grades. This classification is not a limitation of the character of work, the organization of school facilities, or the studies that may be carried on in either the elementary or the high schools.

(5) “Secondary education or high school education” means a program of public school education of six years adapted to the needs of students who have completed their elementary education.

(6) “Kindergarten” means an educational program for children of one year adapted to the needs of students who will attend first grade the following year.

(7) “Public school” means an elementary school or secondary school operated by a school district. A public school may maintain evening or summer schools for its students and it shall be considered a public school.

(8) “Independent school” means a school other than a public school, which provides a program of elementary or secondary education, or both. An “independent school meeting education quality standards” means an independent school in Vermont that undergoes the education quality standards process and meets the requirements of subsection 165(b) of this title.

(9) “School board” means the board of school directors elected to manage the schools of a school district, the prudential committee of an incorporated school district, the supervisory union board of directors, and the supervisors of unorganized towns and gores.

(10) “School district” means town school districts, union school districts, interstate school districts, city school districts, unified union districts, and incorporated school districts, each of which is governed by a publicly elected board.

(11) “School district meeting” means a duly warned meeting of a school district at which questions are presented to the electorate.

(12) “School year” means the year beginning July 1 and ending the next June 30.

(13) “Superintendent” means the chief executive officer of a supervisory union and each school board within it.

(14) “Agency of Education” means the Secretary and staff necessary to carry out the functions of the Agency.

(15) “State Board” means the State Board of Education established by chapter 3 of this title.

(16) [Repealed.]

(17) “Adult education and literacy” means a program of public education adapted to the needs of persons who are beyond compulsory school age, and who have not completed high school education.

(18) [Repealed.]

(19) “Recognized independent school” for any school year means an independent school that meets the requirements for recognized independent schools in section 166 of this title and that is not a home study program.

(20) “Approved independent school” means an independent school that is approved under section 166 of this title.

(21) “Home study program” means an educational program offered through home study that provides a minimum course of study and that is offered to not more than:

(A) children residing in that home; and

(B) children not residing in that home who either are two or fewer in number or who are from one family.

(22) [Repealed.]

(23) “Supervisory union” means an administrative, planning, and educational service unit created by the State Board under section 261 of this title, that consists of two or more school districts; if the context clearly allows, the term also means a supervisory district.

(24) “Supervisory district” means a supervisory union that consists of only one school district, which may be a unified union district.

(25) “Remedial” and “compensatory” services mean educational services, not including special education services, for children who require additional assistance in order to benefit from general classroom instruction and include education services for children at risk of school failure.

(26)(A) “Harassment” means an incident or incidents of verbal, written, visual, or physical conduct, including any incident conducted by electronic means, based on or motivated by a student’s or a student’s family member’s actual or perceived race, creed, color, national origin, marital status, sex, sexual orientation, gender identity, or disability that has the purpose or effect of objectively and substantially undermining and detracting from or interfering with a student’s educational performance or access to school resources or creating an objectively intimidating, hostile, or offensive environment.

(B) “Harassment” includes conduct that violates subdivision (A) of this subdivision (26) and constitutes one or more of the following:

(i) Sexual harassment, which means conduct that includes unwelcome sexual advances, requests for sexual favors and other verbal, written, visual, or physical conduct of a sexual nature when one or both of the following occur:

(I) Submission to that conduct is made either explicitly or implicitly a term or condition of a student’s education.

(II) Submission to or rejection of such conduct by a student is used as a component of the basis for decisions affecting that student.

(ii) Racial harassment, which means conduct directed at the characteristics of a student’s or a student’s family member’s actual or perceived race or color, and includes the use of epithets, stereotypes, racial slurs, comments, insults, derogatory remarks, gestures, threats, graffiti, display, or circulation of written or visual material, and taunts on manner of speech and negative references to racial customs.

(iii) Harassment of members of other protected categories, which means conduct directed at the characteristics of a student’s or a student’s family member’s actual or perceived creed, national origin, marital status, sex, sexual orientation, gender identity, or disability and includes the use of epithets, stereotypes, slurs, comments, insults, derogatory remarks, gestures, threats, graffiti, display, or circulation of written or visual material, taunts on manner of speech, and negative references to customs related to any of these protected categories.

(27) “Tutorial program” means education provided to a student who is placed in a short-term program for evaluation and treatment purposes.

(28) “State-placed student” means:

(A) a Vermont student who has been placed in a school district other than the district of residence of the student’s parent, parents, or guardian or in an approved residential facility by a Vermont State agency, a Vermont licensed child placement agency, a designated community mental health agency, any other agency as defined by the Secretary, or by a court of competent jurisdiction in another state, territory, or country; or

(B) a Vermont student who:

(i) is 18 years of age or older;

(ii) is living in a community residence as a result of placement by a Vermont State agency, a Vermont licensed child placement agency, a designated community mental health agency, or by a court of competent jurisdiction in another state, territory, or country, and whose residential costs are paid for in whole or in part by one of these agencies; and

(iii) resides in a school district other than the district of the student’s parent or parents; or

(C) [Repealed.]

(D) a Vermont student who:

(i) is in either:

(I) the legal custody of the Commissioner for Children and Families; or

(II) the temporary legal custody of an individual pursuant to 33 V.S.A. § 5308(b)(3) or (4), until a disposition order has been entered pursuant to section 5318 of that title; and

(ii) is determined by the Secretary of Education to be in particular need of educational continuity by attending a school in a district other than the student’s current district of residence;

(E) but does not mean a student placed within a correctional facility or in the Woodside Juvenile Rehabilitation Center.

(29) [Repealed.]

(30)(A) “Hazing” means any act committed by a person, whether individually or in concert with others, against a student in connection with pledging, being initiated into, affiliating with, holding office in, or maintaining membership in any organization that is affiliated with an educational institution; and that is intended to have the effect of, or should reasonably be expected to have the effect of, humiliating, intimidating, or demeaning the student or endangering the mental or physical health of a student. Hazing also includes soliciting, directing, aiding, or otherwise participating actively or passively in these acts. Hazing may occur on or off the campus of an educational institution. Hazing shall not include any activity or conduct that furthers legitimate curricular, extracurricular, or military training program goals, provided that:

(i) the goals are approved by the educational institution; and

(ii) the activity or conduct furthers the goals in a manner that is appropriate, contemplated by the educational institution, and normal and customary for similar programs at other educational institutions.

(B) The definitions of “educational institution,” “organization,” “pledging,” and “student” shall be the same as those in section 570i of this title.

(31) “Early childhood education,” “early education,” or “prekindergarten education” means services designed to provide developmentally appropriate early development and learning experiences based on Vermont’s early learning standards to children who are three to four years of age and to five-year-old children who are not eligible for or enrolled in kindergarten.

(32) “Bullying” means any overt act or combination of acts, including an act conducted by electronic means, directed against a student by another student or group of students and that:

(A) is repeated over time;

(B) is intended to ridicule, humiliate, or intimidate the student; and

(C)(i) occurs during the school day on school property, on a school bus, or at a school-sponsored activity, or before or after the school day on a school bus or at a school-sponsored activity; or

(ii) does not occur during the school day on school property, on a school bus, or at a school-sponsored activity and can be shown to pose a clear and substantial interference with another student’s right to access educational programs.

(33)(A) “Pregnant or parenting pupil” means a legal pupil of any age who is not a high school graduate and who:

(i) is pregnant; or

(ii) has given birth, has placed a child for adoption, or has experienced a miscarriage, if any of these has occurred within one year before the public or approved independent school or the approved education program receives a request for enrollment or attendance; or

(iii) is the parent of a child.

(B) “Pregnant or parenting pupil” does not include a person whose parental rights have been terminated, except if the person has placed the child for adoption or has voluntarily relinquished parental rights, within one year before the public or approved independent school or the approved education program receives a request for enrollment or attendance.

(34) “Approved education program” means a program that is evaluated and approved by the State Board pursuant to written standards, that is neither an approved independent school nor a public school, and that provides educational services to one or more students in collaboration with the student’s or students’ school district of residence. An “approved education program” includes an “approved teen parent education program.”

(35) “Teen parent education program” means a program designed to provide educational and other services to pregnant pupils or parenting pupils, or both.

(b) Each school district shall be known by the name of the municipality in which it lies, or in the case of union, incorporated, and interstate school districts, by a number and by a name given the district by its school board and approved by the Secretary.

(Added 1969, No. 298 (Adj. Sess.), § 10; amended 1975, No. 48, § 1, eff. April 15, 1975; 1975, No. 147 (Adj. Sess.), § 2; 1981, No. 151 (Adj. Sess.), § 1; 1981, No. 170 (Adj. Sess.), § 10a, eff. April 19, 1982; 1983, No. 248 (Adj. Sess.), § 1; 1985, No. 71, § 2; 1987, No. 68, § 2; 1987, No. 97, § 1, eff. June 23, 1987; 1987, No. 228 (Adj. Sess.), §§ 1, 2; 1989, No. 44, § 2, eff. June 1, 1990; 1989, No. 230 (Adj. Sess.), § 5; 1991, No. 24, § 1; 1993, No. 162 (Adj. Sess.), § 2; 1995, No. 157 (Adj. Sess.), § 1; 1997, No. 71 (Adj. Sess.), § 107, eff. March 11, 1998; 1999, No. 120 (Adj. Sess.), § 2; 2001, No. 8, § 1; 2003, No. 66, § 188a; 2003, No. 68, § 25, eff. June 18, 2003; 2003, No. 91 (Adj. Sess.), § 2; 2003, No. 117 (Adj. Sess.), § 1; 2007, No. 41, § 17; 2007, No. 62, § 2; 2007, No. 66, § 1; 2009, No. 44, §§ 1, 14, 29, 32, 33, eff. May 21, 2009; 2011, No. 58, §§ 35, 36, eff. May 31, 2011; 2011, No. 129 (Adj. Sess.), § 32; 2013, No. 92 (Adj. Sess.), § 1, eff. Feb. 14, 2014; 2013, No. 179 (Adj. Sess.), § E.500.6; 2015, No. 23, §§ 17, 31; 2015, No. 48, § 1.)

§ 12 Oath

A superintendent; a principal or teacher in a public school of the State; a professor, instructor, or teacher who will be employed by a university or college in the State that is supported in whole or in part by public funds; or a headmaster or teacher who will be employed by an independent school or other educational institution accepted by the Agency as furnishing equivalent education, before entering upon the discharge of his or her duties, shall subscribe to an oath or affirmation to support the U.S. Constitution, the Vermont Constitution, and all State and federal laws; provided, however, that an oath shall not be required of any person who is a citizen of a foreign country.

(Added 1969, No. 298 (Adj. Sess.), § 11; amended 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 2, eff. Feb. 14, 2014.)

§ 13 Gifted and talented children

(a) “Gifted and talented children” means children identified by professionally qualified persons who, when compared to others of their age, experience, or environment, exhibit capability of high performance in intellectual, creative, or artistic areas, possess an unusual capacity for leadership, or excel in specific academic fields.

(b) It is the intent of the General Assembly that those who provide educational services to children be encouraged to apply for any available funding that will help to provide teacher training and other services for the benefit of gifted and talented children.

(c) Nothing in this section shall create an additional entitlement to educational or other services.

(Added 1995, No. 139 (Adj. Sess.), § 1.)

§ 14 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 74, eff. February 14, 2014.

§ 15 Repealed

[Repealed]

2009, No. 135 (Adj. Sess.), § 26(6)(A).

Subchapter 2 Federal Funds

§ 41 Authority of Agency to use federal funds to aid education

(a) The Agency of Education is designated as the sole state agency to establish and administer any statewide plan required as a condition for receipt of federal funds made available to the State for any educational purposes, including career technical education and adult education and literacy. The Agency shall also be the agency to accept and administer federal funds that require administration by a state education agency having jurisdiction of elementary and secondary education.

(b) Subject to the approval of the Governor, the Agency may accept and use federal funds. It may establish criteria and procedures to conform with any requirements established for the use of the funds and may take such other action as may be required to comply with any condition for receipt of federal aid.

(Added 1969, No. 298 (Adj. Sess.), § 19; amended 1975, No. 147 (Adj. Sess.), § 1; 1983, No. 247 (Adj. Sess.), § 2; 1991, No. 204 (Adj. Sess.), § 7; 2009, No. 44, § 29, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), §§ 17, 302, eff. Feb. 14, 2014.)

§ 42 Acceptance, distribution, and accounting of federal funds

(a) The State Treasurer, acting upon the order of the Secretary, shall accept, distribute, and account for federal funds available for use by the Agency. Funds shall be distributed and accounted for by the State Treasurer in accordance with the laws of Vermont, but if there is a conflict between those laws and the laws or regulations of the United States, then federal law shall apply. The Secretary shall prepare and submit federally required statements of funds received and disbursed. The Secretary shall cause an audit to be made of the federal funds and shall submit a copy of the audit as required by federal law. The audit shall be supported by any reports from the supervisory union, local school districts, or other recipients of federal funds as may be required by the Secretary or the federal government.

(b) The State Treasurer may directly deposit checks payable to a supervisory union or any school district within it or may deliver checks to the superintendent of the supervisory union.

(Added 1969, No. 298 (Adj. Sess.), § 20; amended 1987, No. 228 (Adj. Sess.), § 8; 2013, No. 92 (Adj. Sess.), § 18, eff. Feb. 14, 2014.)

§ 43 Federal education aid funds; administration; local education agency

(a) The Agency, as sole state agency, may administer federal funds made available to the State under the Elementary and Secondary Education Act of 1965, Public L. No. 89-10, as amended, and the No Child Left Behind Act of 2001, Public L. No. 107-110. Those funds may be accepted and shall be distributed and accounted for by the State Treasurer in accordance with that law and rules and regulations of the United States issued under it if there is conflict between that law or those rules and regulations and the laws of this State.

(b) For purposes of distribution of funds under this section, a supervisory union shall be a local education agency as that term is defined in 20 U.S.C. § 7801(26).

(c) For purposes of determining student performance and application of consequences for failure to meet standards and for provision of compensatory and remedial services pursuant to 20 U.S.C. §§ 6311-6318, a supervisory union shall be a local education agency.

(Added 1965, No. 190, eff. June 30, 1965; amended 2003, No. 64, § 1; 2003, No. 114 (Adj. Sess.), § 1; 2013, No. 92 (Adj. Sess.), § 19, eff. Feb. 14, 2014; 2015, No. 46, § 42, eff. July 1, 2016.)

§ 44 Federal funds; school food programs

The Agency is authorized to accept and use federal funds made available to the State for school food programs under the National School Lunch Act, the Child Nutrition Act, and any amendments to those laws.

(Added 1969, No. 298 (Adj. Sess.), § 23; amended 2013, No. 92 (Adj. Sess.), § 21, eff. Feb. 14, 2014.)

Subchapter 2A Alcohol and Drug Abuse Education

§§ 51-55 Repealed

[Repealed]

1977, No. 131 (Adj. Sess.), § 2, eff. March 3, 1978.

Subchapter 3 Arts and Crafts Advisory Council

§ 51 Universal Afterschool and Summer Special Fund

(a) The Universal Afterschool and Summer Special Fund is created, to be managed by the Agency of Education. The cannabis sales tax revenue shall be deposited into the Universal Afterschool and Summer Special Fund. The Fund shall be used as follows:

(1) To establish a grant program that supports the expansion of universal afterschool and summer programs with a focus on underserved areas of the State.

(2) Cannabis sales tax revenue shall be used to support a mixed delivery system for afterschool and summer programming. Eligible recipients can be public, private, or nonprofit organizations.

(A) Grants may be used for technical assistance, program implementation, program expansion, program sustainability, and related costs.

(B) Funds may be used to directly target communities with low existing capacity to serve youth in afterschool and summer settings.

(C) The award of grants and any subsequent contract or written agreement issued pursuant to the award of a grant shall require that a grantee does not discriminate, and prohibits its employees, agents, subcontractors, and other service providers from discriminating, on the basis of race, creed, color, national origin, marital status, sex, sexual orientation, gender identity, or disability.

(D) The Agency may use up to $500,000.00 annually for administrative costs to allow for the support of the grant program and technical assistance to communities. This could include subcontracts to support the grant program.

(b) An advisory committee is created to support the Secretary in administering the funds. The Agency shall provide administrative and technical support to the advisory committee. The advisory committee shall be composed of:

(1) the State’s Chief Prevention Officer;

(2) the Commissioner for Children and Families or designee;

(3) the Commissioner of Health or designee;

(4) the Commissioner of Mental Health or designee;

(5) the Secretary of Natural Resources or designee;

(6) the Secretary of Commerce and Community Development or designee;

(7) the Vermont Afterschool Executive Director or designee; and

(8) a representative from the Governor’s office.

(c) Notwithstanding 2 V.S.A. § 20(d), annually on or before November 15, the Agency shall submit to the General Assembly a plan to fund grants pursuant to subsection (a) of this section in the coming year and a report containing outcomes data on the grants made during the previous year. The Agency shall report on the number of programs, slots, weeks, or hours; geographic distribution of programs receiving a grant; and what is known about costs to families participating in programs receiving a grant. The report shall be inclusive of 21st Century programming.

(d) The amount of grant funds awarded shall be in alignment with the actual revenue collected from the sales and use tax imposed by 32 V.S.A. chapter 233 on cannabis or cannabis products in this State. Discrepancies between the amount of grant funds awarded and actual revenue shall be reconciled through the budget adjustment process.

(Added 2023, No. 87 (Adj. Sess.), § 97, eff. March 13, 2024.)

§§ 81-85 Repealed

[Repealed]

1977, No. 247 (Adj. Sess.), § 195.

Subchapter 4 Teacher Education Advisory Council

§§ 101-106 Repealed

[Repealed]

1961, No. 247, § 4.

Subchapter 5 Council on the Arts

§ 111 Purpose of Council

In order to increase the opportunities for Vermonters and visitors to Vermont to view, enjoy, and participate in the visual and performing arts, a group of people devoted to the practices of architecture, painting, sculpture, photography, music, dance, drama, crafts, literature, and other related arts have formed the Vermont Council on the Arts, Inc. (Council). The Council is a nonprofit organization formed for the purpose of coordinating and encouraging schools, organizations, and individuals in their several artistic and cultural activities.

(Added 1965, No. 170, § 1, eff. June 30, 1965; amended 2019, No. 131 (Adj. Sess.), § 49.)

§ 112 Designation as state agency

The Council is designated as the state agency to formulate and apply for grants-in-aid to the State under the National Arts and Cultural Development Act of 1964, as amended.

(Added 1965, No. 170, § 2, eff. June 30, 1965; amended 2019, No. 131 (Adj. Sess.), § 50.)

§ 113 Repealed

[Repealed]

2011, No. 139 (Adj. Sess.), § 51(f)(1), eff. May 14, 2012.

§ 114 Revolving loan fund

There is established for the Council on the Arts a revolving loan fund of $3,000.00 to enable needy persons and groups to purchase supplies useful in their art or craft. Funds may be loaned under terms and conditions of repayment as the Council directs, and the Council may adjust or forgive any amount owed to the fund. The Council shall repay all amounts so adjusted or forgiven from its general appropriation.

(Added 1979, No. 74, § 347.)

Subchapter 6 Vermont French Cultural Commission

§§ 121-123 Repealed

[Repealed]

1995, No. 188 (Adj. Sess.), § 4.

Subchapter 6A Humanities Council

§ 126 Purpose of the Council

In order to increase the opportunities of Vermonters and visitors to Vermont to take part in and enjoy programs in the humanities, a group of people devoted to history, philosophy, languages, linguistics, literature, archeology, jurisprudence, ethics, comparative religion, the theory and criticism of the arts, and related fields has formed the Vermont Humanities Council, a nonprofit organization for the purpose of assisting and encouraging libraries, schools, museums, colleges, universities, and other organizations in their several cultural and educational activities in the humanities.

(Added 1991, No. 105; amended 2003, No. 66, § 250.)

§ 127 Designation

The Vermont Humanities Council is designated as the nonprofit organization in the State to apply for funds distributed by the Division of State Programs, or its successor programs, of the National Endowment for the Humanities under the National Foundation of the Arts and Humanities Act of 1965, as amended.

(Added 1991, No. 105; amended 2003, No. 66, § 250; amended 2019, No. 131 (Adj. Sess.), § 51.)

§ 128 Repealed

[Repealed]

2009, No. 33, § 83(g)(1).

Subchapter 7 Comprehensive Health Education

§ 131 Definition

As used in this title, “comprehensive health education” means a systematic and extensive elementary and secondary educational program designed to provide a variety of learning experiences based upon knowledge of the human organism as it functions within its environment. The term includes the study of:

(1) Body structure and function, including the physical, psychosocial, and psychological basis of human development, sexuality, and reproduction.

(2) Community health to include environmental health, pollution, public health, and world health.

(3) Safety, including:

(A) first aid, disaster prevention, and accident prevention; and

(B) information regarding and practice of compression-only cardiopulmonary resuscitation and the use of automated external defibrillators.

(4) Disease, such as HIV infection, other sexually transmitted diseases, as well as other communicable diseases, and the prevention of disease.

(5) Family health and mental health, including instruction that promotes the development of responsible personal behavior involving decision making about sexual activity, including abstinence; skills that strengthen existing family ties involving communication, cooperation, and interaction between parents and students; and instruction to aid in the establishment of strong family life in the future, thereby contributing to the enrichment of the community; and that promotes an understanding of depression and the signs of suicide risk in a family member or fellow student that includes how to respond appropriately and seek help and provides an awareness of the available school and community resources such as the local suicide crisis hotline.

(6) Personal health habits, including dental health.

(7) Consumer health, including health careers, health costs, and utilizing health services.

(8) Human growth and development, including understanding the physical, emotional, and social elements of individual development and interpersonal relationships, including instruction in parenting methods and styles. This shall include information regarding the possible outcomes of premature sexual activity, contraceptives, adolescent pregnancy, childbirth, adoption, and abortion.

(9) Drugs, including education about alcohol, caffeine, nicotine, and prescribed drugs.

(10) Nutrition.

(11) How to recognize and prevent sexual abuse and sexual violence, including developmentally appropriate instruction about promoting healthy and respectful relationships, developing and maintaining effective communication with trusted adults, recognizing sexually offending behaviors, and gaining awareness of available school and community resources. An employee of the school shall be in the room during the provision of all instruction or information presented under this subdivision.

(Added 1977, No. 131 (Adj. Sess.), § 1, eff. March 3, 1978; amended 1987, No. 270 (Adj. Sess.), § 1; 2005, No. 114 (Adj. Sess.), § 2; 2009, No. 1, § 3, eff. July 1, 2011; 2011, No. 151 (Adj. Sess.), § 1, eff. May 16, 2012; 2011, No. 156 (Adj. Sess.), § 29, eff. May 16, 2012; 2019, No. 157 (Adj. Sess.), § 3, eff. Nov. 1, 2020.)

§ 132 Secondary schools; provision of contraceptives

In order to prevent or reduce unintended pregnancies and sexually transmitted diseases, each school district shall make condoms available to all students in its secondary schools, free of charge. School district administrative teams, in consultation with school district nursing staff, shall determine the best manner in which to make condoms available to students. At a minimum, condoms shall be placed in locations that are safe and readily accessible to students, including the school nurse’s office.

(Added 2019, No. 157 (Adj. Sess.), § 4, eff. July 1, 2021.)

§ 133 Supervisor; comprehensive health education

(a) The Secretary with the approval of the State Board may appoint one qualified person to supervise the preparation of appropriate curricula for use in the public schools, to promote programs for the preparation of teachers to teach these curricula, and to assist in the development of comprehensive health education programs.

(b) [Repealed.]

(c) Vermont school districts may include a module within the secondary school health class curricula relating to cervical cancer and the human papillomavirus. The Agency shall work with relevant medical authorities to update the current model module to reflect up-to-date information and practices for health education in this area.

(Added 1977, No. 131 (Adj. Sess.), § 1, eff. March 3, 1978; amended 2007, No. 203 (Adj. Sess.), § 22, eff. June 10, 2008; 2013, No. 92 (Adj. Sess.), § 3, eff. Feb. 14, 2014.)

§ 134 Religious exemption

Any student whose parent shall present to the school principal a signed statement that the teaching of disease, its symptoms, development, and treatment, conflicts with the parents’ religious convictions shall be exempt from such instruction, and no child so exempt shall be penalized by reason of that exemption.

(Added 1977, No. 131 (Adj. Sess.), § 1, eff. March 3, 1978; amended 1987, No. 270 (Adj. Sess.), § 2.)

§ 135 Program development; community advisory council

(a) The Agency shall offer assistance to school districts and supervisory unions to provide teacher instruction in comprehensive health education.

(b) Any school district board or supervisory union board may establish a comprehensive health education community advisory council to assist the school board in developing and implementing comprehensive health education. The school board shall provide public notice to the community to allow all interested parties to apply for appointment. The school board shall endeavor to appoint members who represent various points of view within the community regarding comprehensive health education.

(Added 1987, No. 270 (Adj. Sess.), § 3; amended 2013, No. 92 (Adj. Sess.), § 4, eff. Feb. 14, 2014.)

§ 136 Wellness program; Advisory Council on Wellness and Comprehensive Health

(a) As used in this section:

(1) “Fitness program” means a program that includes a physical education program and a physical activity program.

(2) “Nutrition” includes all food and beverages sold or served in the food service program, vending machines, snack bars, and school stores.

(3) “Physical activity program” means a program that includes, in addition to regular physical education classes, minimum daily physical activity for each student provided through activities such as recess and other recreation periods, and participation in athletics either during or after regular school hours. “Physical activity” means moderate and vigorous physical activities.

(4) “Physical education program” means a sequential, developmentally appropriate program that is an enjoyable experience for students and is designed to help students develop the knowledge, skill, self-management skill, attitudes, and confidence needed to adopt and maintain physical fitness throughout their lives.

(5) “Wellness program” means a program that includes physical fitness and comprehensive health education as defined in section 131 of this title.

(b) The Secretary shall establish an Advisory Council on Wellness and Comprehensive Health that shall include at least three members with expertise in health services, health education, or health policy; at least one member who is a school counselor; and at least one member who is a school social worker. The members shall serve without compensation. The Council shall assist the Agency to plan, coordinate, and encourage wellness and comprehensive health programs in the public schools and shall meet not less than twice a year. The Council shall also examine and coordinate state health wellness policies and federal wellness policies to identify and, if possible, eliminate any redundancies.

(c) The Secretary shall collaborate with other agencies and councils working on childhood wellness to:

(1) Supervise the preparation of appropriate wellness program curricula for use in the public schools, promote programs for the preparation of teachers to teach these curricula, and assist in the development of wellness programs.

(2) [Repealed.]

(3) Establish and maintain a website that displays data from a youth risk behavior survey in a way that enables the public to aggregate and disaggregate the information.

(4) Research funding opportunities for schools and communities that wish to build wellness programs and make the information available to the public.

(5) [Repealed.]

(d) The Agency shall offer assistance to school districts and supervisory unions to provide teacher instruction in wellness programs.

(e) Any school district board or supervisory union board may establish a wellness community advisory council to inventory community programs and assets and to assist the school board and community in developing and implementing wellness programs. The school board shall provide public notice to the community to allow all interested parties to apply for appointment. The school board shall endeavor to appoint members who represent various points of view and expertise within the community regarding wellness programs. Members may include representatives from coordinated school health teams, teachers, school administrators, students, community members, health care providers, parents, and others.

(Added 2003, No. 161 (Adj. Sess.), § 2; amended 2007, No. 154 (Adj. Sess.), § 6; 2009, No. 135 (Adj. Sess.), § 6; 2013, No. 92 (Adj. Sess.), §§ 5, 6, eff. Feb. 14, 2014; 2021, No. 66, § 9, eff. June 7, 2021.)

Subchapter 8 Tobacco Use Policy

§ 140 Tobacco use prohibited on public school grounds

No person shall be permitted to use tobacco products or tobacco substitutes as defined in 7 V.S.A. § 1001 on public school grounds or at public school sponsored functions. Public school boards may adopt policies that include confiscation and appropriate referrals to law enforcement authorities.

(Added 1987, No. 162 (Adj. Sess.), § 4; amended 1995, No. 52, § 1; 1997, No. 58, § 10; 2013, No. 135 (Adj. Sess.), § 4; 2017, No. 74, § 21.)

Subchapter 9 Hazing

§ 140a Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 78, eff. Feb. 14, 2014. [Repealed]

§ 140b Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 79, eff. Feb. 14, 2014.

§ 140c Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 80, eff. Feb. 14, 2014.

§ 140d Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 81, eff. Feb. 14, 2014.

Chapter 3 State Board of Education

Subchapter 1 General Provisions

§§ 141-144 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 144a Repealed

[Repealed]

2011, No. 58, § 31, eff. May 31, 2011.

§ 144b Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 19, eff. Feb. 14, 2014.

§ 145 Repealed

[Repealed]

1961, No. 247, § 4.

§§ 146-151 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 161 State Board of Education; appointment of members; term; vacancy

The State Board shall consist of 10 members. Two of the members shall be secondary students, one of whom shall be a full member and the other of whom shall be a junior member who may not vote. Eight members, including the two student members, shall be appointed by the Governor with the advice and consent of the Senate. One member shall be appointed by the Speaker of the House and one member shall be appointed by the Senate Committee on Committees. In the appointment of the nonstudent members, priority shall be given to the selection of persons with a demonstrated commitment to ensuring quality education for Vermont students. To the extent possible, the members shall represent the State’s geographic, gender, racial, and ethnic diversity. The Secretary shall serve on the State Board as a nonvoting member.

(1) Upon the expiration of the respective terms of those members of the Board previously appointed, excluding the student members, the appointing authority that made the initial appointment to the expired term shall, biennially in the month of February with the advice and consent of the Senate, as applicable, appoint members for terms of six years. The terms shall begin March 1 of the year in which the appointments are made. A member serving a term of six years shall not be eligible for reappointment for successive terms.

(2) In the event of any vacancy occurring in the membership of the Board, the appointing authority that made the initial appointment to the vacated term shall fill the vacancy with a qualified person whose appointment shall be for the unexpired portion of the term.

(3) Biennially, the Board shall choose a member of the Board to be its chair.

(4) Annually, using an application process that is open and accessible to all eligible students, the Governor shall appoint a Vermont secondary school student who will continue to be a secondary student for at least two years following taking office, to serve on the State Board for two years, beginning on July 1 of the year of appointment. The student member shall not vote during the first year and shall be a full and voting member during the second year of the student’s term.

(Added 1969, No. 298 (Adj. Sess.), § 12; amended 1975, No. 48, § 2, eff. date, at end of chair’s term; 1997, No. 34, § 1; 1999, No. 74 (Adj. Sess.), § 1, eff. March 27, 2000; 2011, No. 98 (Adj. Sess.), § 2, eff. Jan. 1, 2013; 2019, No. 131 (Adj. Sess.), § 52; 2021, No. 66, § 19, eff. June 7, 2021; 2025, No. 73, § 24, eff. July 1, 2025.)

§ 162 Removal of Board members

After notice and hearing, the Governor may remove a member of the State Board for incompetency, failure to discharge the member’s duties, malfeasance, illegal acts, or other cause inimical to the welfare of the public schools; and in case of such removal, the appointing authority that made the initial appointment shall appoint a person to fill the unexpired term.

(Added 1969, No. 298 (Adj. Sess.), § 13; amended 2025, No. 73, § 26, eff. July 1, 2025.)

§ 163 Staff; meetings

(a) The Board shall be supported by adequate staff, who shall report to the Board.

(b) The Board shall meet monthly and shall hold special meetings as required for the performance of its duties. The times and places for regular and special meetings shall be designated by the Chair of the Board. The Chair shall call a special meeting upon the written request of any two members.

(Added 1969, No. 298 (Adj. Sess.), § 14; amended 2011, No. 98 (Adj. Sess.), § 3, eff. April 1, 2013.)

§ 164 State Board; general powers and duties

The State Board shall engage local school board members and the broader education community and, consistent with the provisions of this title, its own rules, and rules adopted by the Secretary, establish and regularly update a long-term strategic vision for the delivery of educational services in Vermont; advise the General Assembly, the Governor, and the Secretary of Education on high-priority educational policies and issues as they arise; and act in accordance with legislative mandates, including the adoption of rules and executing special assignments. In addition to other specified duties, the Board shall:

(1) Establish such advisory commissions as in the judgment of the Board will be of assistance to it in carrying out its duties. Advisory commission members shall serve with or without compensation at the discretion of the Board but shall receive actual expenses incurred in pursuance of their duties.

(2) Have the authority to enter into agreements with school districts, municipalities, states, the United States, foundations, agencies, or individuals for service, educational programs, or research projects.

(3) Examine and determine all appeals that by law are made to it and prescribe rules of practice in respect thereto, not inconsistent with law.

(4) [Repealed.]

(5) [Repealed.]

(6) Make regulations governing the attendance and records of attendance of all students and the deportment of students attending public schools.

(7) Adopt rules pursuant to 3 V.S.A. chapter 25 to carry out the powers and duties of the Board as directed by the General Assembly, within the limitations of legislative intent.

(8) [Repealed.]

(9) Implement and continually update standards for student performance in appropriate content areas and at appropriate intervals in the continuum from kindergarten to grade 12 and methods of assessment to determine attainment of the standards for student performance. The standards shall be rigorous, challenging, and designed to prepare students to participate in and contribute to the democratic process and to compete in the global marketplace. The standards shall include a standard for reading level proficiency for students completing grade three.

(10) [Repealed.]

(11) If deemed advisable, determine educational standards for admission to and graduation from the public schools.

(12) [Repealed.]

(13) Be the State Board for the program of adult education and literacy and perform all the duties and powers prescribed by law pertaining to adult education and literacy and to act as the State approval agency for educational institutions conducting programs of adult education and literacy.

(14) Adopt rules for approval of independent schools.

(15) Establish criteria governing the establishment of a system for the receipt, deposit, accounting, and disbursement of all funds by supervisory unions and school districts.

(16) In cooperation with the Secretary, ensure that the Agency develops information, plans, and assistance to aid in making technology and telecommunications available and coordinated in all school districts. The State Board shall develop guidelines for distribution of federal, State, or private funds designated for the development or expansion of distance learning technologies. The guidelines shall encourage, consistent with any terms or conditions established by the funding source, collaboration between schools and school districts to realize economic and educational efficiencies.

(17) Report annually on the condition of education statewide and on a supervisory union and school district basis. The report shall include information on attainment of standards for student performance adopted under subdivision (9) of this section, number and types of complaints of hazing, harassment, or bullying made pursuant to chapter 9, subchapter 5 of this title and responses to the complaints, financial resources and expenditures, and community social indicators. The report shall be organized and presented in a way that is easily understandable by the general public and that enables each school, school district, and supervisory union to determine its strengths and weaknesses. To the extent consistent with State and federal privacy laws and regulations, data on hazing, harassment, or bullying incidents shall be disaggregated by incident type, including disaggregation by ethnic groups, racial groups, religious groups, gender, sexual orientation, gender identity, disability status, and English language learner status. The Secretary shall use the information in the report to determine whether students in each school, school district, and supervisory union are provided educational opportunities substantially equal to those provided in other schools, school districts, and supervisory unions pursuant to subsection 165(b) of this title.

(18) Ensure that Vermont’s students, including students enrolled in secondary career technical education, have access to a substantially equal educational opportunity by developing a system to evaluate the equalizing effects of Vermont’s education finance system and education quality standards under section 165 of this title.

(19) [Repealed.]

(20) Pursuant to section 806g of this title, constitute the State Council for the Interstate Compact on Educational Opportunity for Military Children and appoint to the Council a Compact Commissioner and Military Family Education Liaison, who may be the same person. The Board may appoint additional members.

(21) Report annually to the Governor and the General Assembly on the progress the Board has made on the development of education policy for the State.

(Added 1969, No. 298 (Adj. Sess.), § 15; amended 1971, No. 14, § 5, eff. March 11, 1971; 1975, No. 48, §§ 3, 14, eff. April 15, 1975; 1975, No. 147 (Adj. Sess.), § 3; 1981, No. 151 (Adj. Sess.), § 5; 1983, No. 247 (Adj. Sess.), § 4(1); 1983, No. 248 (Adj. Sess.), § 4; 1987, No. 97, § 4, eff. June 23, 1987; 1987, No. 228 (Adj. Sess.), § 6; 1989, No. 118, § 3; 1991, No. 24, § 11; 1991, No. 204 (Adj. Sess.), § 7; 1997, No. 60, § 3, eff. June 26, 1997; 1997, No. 138 (Adj. Sess.), § 3, eff. April 27, 1998; 1999, No. 113 (Adj. Sess.), § 1a; 1999, No. 120 (Adj. Sess.), § 3; 2001, No. 151 (Adj. Sess.), § 50, eff. July 1, 2003; 2005, No. 214 (Adj. Sess.), § 12; 2007, No. 154 (Adj. Sess.), § 6; 2011, No. 43, § 2, eff. July 1, 2011; 2011, No. 45, § 7a, eff. May 24, 2011; 2011, No. 98 (Adj. Sess.), § 4, eff. April 1, 2013; 2013, No. 56, § 22, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), §§ 8, 9, 302, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 26; 2015, No. 23, § 18; 2015, No. 131 (Adj. Sess.), § 23; 2019, No. 1, § 2, eff. Mar. 29, 2019; 2019, No. 131 (Adj. Sess.), § 53; 2021, No. 66, § 20, eff. June 7, 2021.)

§ 164a Statewide Strategic Education Plan

Beginning on July 1, 1998, the State Board shall adopt through a public process a statewide strategic education plan to describe how the Agency will help school boards to improve student performance. The State Board shall update and readopt the plan at least every five years. The goals of the plan shall be to strengthen coherence and consistency among State and local education goals, standards for student performance, assessments, professional development opportunities, and action plans and to provide support for local curriculum development. The plan shall include information as to the economic costs of implementation and the education benefits to be derived.

(Added 1997, No. 60, § 6, eff. June 26, 1997; 2013, No. 92 (Adj. Sess.), §§ 10, 11, eff. Feb. 14, 2014.)

§ 165 Education quality standards; equal educational opportunities; independent school meeting education quality standards

(a) In order to carry out Vermont’s policy that all Vermont children will be afforded educational opportunities that are substantially equal in quality, each Vermont public school, including each career technical center, shall meet the following education quality standards:

(1) The school, through a process including parents, teachers, students, and community members, develops, implements, and annually updates a continuous improvement plan to improve student performance within the school. The plan shall include goals and objectives for improved student learning and educational strategies and activities to achieve its goals. The plan shall also address the effectiveness of efforts made since the previous continuous improvement plan to ensure the school maintains a safe, orderly, civil, and positive learning environment that is free from harassment, hazing, and bullying. The school shall assess student performance under the plan using a method or methods of assessment developed under subdivision 164(9) of this title.

(2) The school, at least annually, reports student performance results to community members in a format selected by the school board. In the case of a regional career technical center, the community means the school districts in the service region. The school report shall include:

(A) Information indicating progress toward meeting standards from the most recent measure taken.

(B) [Repealed.]

(C) Information indicating progress toward meeting the goals of an annual continuous improvement plan.

(D) Any other statistical information about the school or community that the school board deems necessary to place student performance results in context.

(E)-(G) [Repealed.]

(H) A description of how the school ensures that each student receives appropriate career counseling and program information regarding availability of education and apprenticeship program offerings at career technical centers.

(I) [Repealed.]

(J) If the school is a secondary school, information and supporting data presented in a manner designed to protect student confidentiality on the dropout and graduation rates.

(K) Data provided by the Secretary that enable a comparison with other schools, or school districts if school level data are not available, for cost-effectiveness. The Secretary shall establish which data are to be included pursuant to this subdivision and, notwithstanding that the other elements of the report are to be presented in a format selected by the school board, shall develop a common format to be used by each school in presenting the data to community members. The Secretary shall provide the most recent data available to each school no later than October 1 of each year. Data to be presented include student-to-teacher ratio, administrator-to-student ratio, administrator-to-teacher ratio, and cost per pupil.

(3) The school substantially meets standards adopted by rule of the State Board regarding conditions, practices, and resources of schools. The standards shall address those aspects of the following that are most closely associated with improving student performance:

(A) school leadership, staffing, and support services;

(B) instructional practices and curriculum leadership, content, and coordination;

(C) educational materials and school facilities;

(D) access to current technology.

(4) The school shall provide for and the staff shall use needs-based professional development designed to improve the quality of education provided to the students and directly connected to standards for student performance established by the State Board and any other educational performance goals established by the school board.

(5) The school uses staff evaluation to advance educational performance objectives.

(6) The school ensures that students receive appropriate career counseling and program information regarding the availability of education and apprenticeship program offerings at career technical centers. In addition, the school, if it is a secondary school, offers a genuine opportunity to access career technical education programs.

(7) The school ensures that students are furnished educational services in accordance with any State or federal entitlements and in a nondiscriminatory manner.

(8) The school maintains a safe, orderly, civil, and positive learning environment that is free from hazing, harassment, and bullying, and is based on sound instructional and classroom management practices and clear discipline policies that are consistently and effectively enforced.

[Subdivision (a)(9) effective July 1, 2026.]

(9) The school complies with average class size minimum standards; provided, however, that when class size minimums apply to content areas, an individual class may be smaller than the minimum average. As used in this subdivision, “content area” means a group of courses within a specific licensing endorsement area.

(A) Class size standards.

(i) The average class size minimum for first-grade classes shall be 10 students.

(ii) The average class size minimum for grades two through five shall be 12 students.

(iii) The average class size minimum for grades six through eight in all required content areas shall be 15 students.

(iv) The average class size minimum for grades nine through 12 in all required content area classes shall be 18 students.

(v) Multiage classrooms for grades kindergarten through eight shall be limited to two grade levels per classroom.

(vi) Prekindergarten, kindergarten, career and technical education, flexible pathways, terminal courses, advanced placement courses, courses that require specialized equipment, and driver’s education classes shall be excluded from the class size minimum requirements in this subdivision (9). Small group services for the purpose of providing special education, supplemental or targeted academic intervention, or English learner instruction shall also be excluded from the class size minimum requirements in this subdivision (9).

(vii) Class sizes shall not exceed the maximum occupancy limits established by local and State fire codes, including egress and safety requirements.

(B) Waivers. If a school board determines that it operates a school that is unable to comply with the class size minimum standards due to geographic isolation, or a school has developed an implementation plan to meet the standards contained in this subdivision (9) that may include consolidation or merger, the school board may ask the State Board of Education to grant it waiver from this subdivision (9). The State Board shall define what qualifies as geographic isolation in its rules adopted pursuant to subdivision (a)(3) of this section. The State Board’s decision shall be final.

(C) State Board action. If the Secretary determines that a school is not meeting the class size minimum standards set forth in this subdivision (9) over the course of three consecutive school years, the Secretary may recommend to the State Board one or more of the actions listed in subsection (b) of this section, regardless of whether the school is meeting all other education quality standards. The State Board shall then follow the procedure of subsection (c) of this section.

[Subsection (b) effective until July 1, 2026; see also subsection (b) effective July 1, 2026 set out below.]

(b) Annually, the Secretary shall determine whether students in each Vermont public school are provided educational opportunities substantially equal to those provided in other public schools. If the Secretary determines that a school is not meeting the education quality standards listed in subsection (a) of this section or that the school is making insufficient progress in improving student performance in relation to the standards for student performance set forth in subdivision 164(9) of this title, he or she shall describe in writing actions that a district must take in order to meet either or both sets of standards and shall provide technical assistance to the school. If the school fails to meet the standards or make sufficient progress within two years of the determination, the Secretary shall recommend to the State Board one or more of the following actions:

(1) the Agency continue to provide technical assistance for one more cycle of review;

(2) the State Board adjust supervisory union boundaries or responsibilities of the superintendency pursuant to section 261 of this title;

(3) the Secretary assume administrative control of an individual school, school district, or supervisory union, including budgetary control to ensure sound financial practices, only to the extent necessary to correct deficiencies;

(4) the State Board close an individual school or schools and require that the school district pay tuition to another public school or an approved independent school pursuant to chapter 21 of this title; or

(5) the State Board require two or more school districts to consolidate their governance structures.

[Subsection (b) effective July 1, 2026; see also subsection (b) effective until July 1, 2026 set out above.]

(b) Annually, the Secretary shall determine whether students in each Vermont public school are provided educational opportunities substantially equal to those provided in other public schools. If the Secretary determines that a school is not meeting the education quality standards listed in subsection (a) of this section or that the school is making insufficient progress in improving student performance in relation to the standards for student performance set forth in subdivision 164(9) of this title, the Secretary shall describe in writing actions that a district must take in order to meet either or both sets of standards and shall provide technical assistance to the school. If the school fails to meet the standards or make sufficient progress within two years following the determination, the Secretary shall recommend to the State Board one or more of the following actions:

(1) the Agency continue to provide technical assistance for one more cycle of review;

(2) the State Board adjust supervisory union boundaries or responsibilities of the superintendency pursuant to section 261 of this title;

(3) the Secretary assume administrative control of an individual school, school district, or supervisory union, including budgetary control to ensure sound financial practices, only to the extent necessary to correct deficiencies;

(4) the State Board close an individual school or schools and require that the school district pay tuition to another public school or an approved independent school pursuant to chapter 21 of this title; or

(5) the State Board require two or more school districts to consolidate their governance structures.

(c) The State Board, after offering the school board an opportunity for a hearing, shall either dismiss the Secretary’s recommendation or order that one or more of the actions listed in subsection (b) of this section be taken. The action ordered by the State Board shall be the least intrusive consistent with the need to provide students attending the school substantially equal educational opportunities. A school board aggrieved by an order of the State Board may appeal the order in accordance with the Rules of Civil Procedure.

(d) Nothing in this section shall be construed to entitle any student to educational programs or services identical to those received by students in the same or any other school district. Further, nothing in this section shall create a private right of action.

[Subsection (e) effective until July 1, 2026; see also subsection (e) effective July 1, 2026 set out below.]

(e) If the Secretary determines at any time that the failure of a school to meet the education quality standards listed in subsection (a) of this section is severe or pervasive, potentially results in physical or emotional harm to students or significant deprivation of equal education opportunities, and the school has either unreasonably refused to remedy the problem or its efforts have proved ineffective, he or she may recommend to the State Board one or more of the actions listed in subsection (b) of this section. The State Board shall then follow the procedure of subsection (c) of this section.

[Subsection (e) effective July 1, 2026; see also subsection (e) effective until July 1, 2026 set out above.]

(e) If the Secretary determines at any time that the failure of a school to meet the education quality standards listed in subsection (a) of this section is severe or pervasive, potentially results in physical or emotional harm to students or significant deprivation of equal education opportunities, and the school has either unreasonably refused to remedy the problem or its efforts have proved ineffective, the Secretary may recommend to the State Board one or more of the actions listed in subsection (b) of this section. The State Board shall then follow the procedure of subsection (c) of this section.

(f) In order to be designated an independent school meeting education quality standards, an independent school shall participate in the education quality standards process of subsection (b) of this section. An independent school shall receive technical assistance in accordance with the provisions of subsection (b), but shall not be subject to subdivisions (b)(2)-(4) of this section. The school shall be an independent school meeting education quality standards unless the State Board, after opportunity for hearing, finds that:

(1) the school has discontinued its participation in the education quality standards process; or

(2) two or more years following a determination that the school is not meeting the education quality standards or that the school is making insufficient progress in improving student performance, the school fails to meet the standards or make sufficient progress toward meeting the standards.

(g) In addition to the education quality standards provided in subsection (a) of this section, each Vermont school district shall meet the school district quality standards adopted by rule of the Agency of Education regarding the business, facilities management, and governance practices of school districts. These standards shall include a process for school district quality reviews to be conducted by the Agency of Education. Annually, the Secretary shall publish metrics regarding the outcomes of school district quality reviews.

(Added 1969, No. 298 (Adj. Sess.), § 16; amended 1981, No. 151 (Adj. Sess.), § 6; 1987, No. 97, § 5, eff. June 23, 1987; 1989, No. 44, § 3, eff. June 1, 1990; 1997, No. 60, § 4, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 82, eff. March 11, 1998; 1997, No. 138 (Adj. Sess.), § 4, eff. April 27, 1998; 1999, No. 113 (Adj. Sess.), § 1b; 1999, No. 120 (Adj. Sess.), § 4; 2001, No. 8, § 2; 2003, No. 68, § 46, eff. June 18, 2003; 2005, No. 54, § 1; 2007, No. 154 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 12, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 27; 2015, No. 23, § 19; 2015, No. 46, § 40, eff. July 1, 2020; 2015, No. 131 (Adj. Sess.), § 24; 2017, No. 49, § 26, eff. May 23, 2017; 2021, No. 127 (Adj. Sess.), § 13, eff. July 1, 2024; 2025, No. 73, § 6, eff. July 1, 2026.)

§ 165a Repealed

[Repealed]

1989, No. 44, § 7, eff. July 1, 1990.

§ 166 Approved and recognized independent schools

(a) Authority. An independent school may operate and provide elementary education or secondary education if it is either approved or recognized as set forth in this section.

(b) Approved independent schools. On application, the State Board shall approve an independent school that offers elementary or secondary education if it finds, after opportunity for hearing, that the school provides a minimum course of study pursuant to section 906 of this title and that it substantially complies with all statutory requirements for approved independent schools and the Board’s rules for approved independent schools. An independent school that intends to accept public tuition shall be approved by the State Board only on the condition that the school agrees, notwithstanding any provision of law to the contrary, to enroll any student who requires special education services and who is placed in or referred to the approved independent school as an appropriate placement and least restrictive environment for the student by the student’s individualized education program team or by the local education agency; provided, however, that this requirement shall not apply to an independent school that limits enrollment to students who are on an individualized education program or a plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and who are enrolled pursuant to a written agreement between the local education agency and the school. Except as provided in subdivision (6) of this subsection, the Board’s rules must at minimum require that the school have the resources required to meet its stated objectives, including financial capacity, faculty who are qualified by training and experience in the areas in which they are assigned, and physical facilities and special services that are in accordance with any State or federal law or regulation. Approval may be granted without State Board evaluation in the case of any school accredited by a private, State, or regional agency recognized by the State Board for accrediting purposes, provided that the State Board shall determine that the school complies with all student enrollment provisions required by law.

(1) On application, the State Board shall approve an independent school that offers kindergarten but no other graded education if it finds, after opportunity for hearing, that the school substantially complies with the Board’s rules for approved independent kindergartens. The State Board may delegate to another State agency the authority to evaluate the safety and adequacy of the buildings in which kindergartens are conducted but shall consider all findings and recommendations of any such agency in making its approval decision.

(2) Approvals under this subsection (b) shall be for a term established by rule of the Board but not greater than five years.

(3) An approved independent school shall provide to the parent or guardian responsible for each of its students, prior to accepting any money for a student, an accurate statement in writing of its status under this section and a copy of this section. Failure to comply with this provision may create a permissible inference of false advertising in violation of 13 V.S.A. § 2005.

(4) Each approved independent school shall provide to the Secretary on October 1 of each year the names, genders, dates of birth, and addresses of its enrolled students. Within seven days of the termination of a student’s enrollment, the approved independent school shall notify the Secretary of the name and address of the student. The Secretary shall notify the appropriate school officials as provided in section 1126 of this title.

(5) The State Board may revoke, suspend, or impose conditions upon the approval of an approved independent school, after having provided an opportunity for a hearing, for substantial failure to comply with the minimum course of study, for failure to demonstrate that the school has the resources required to meet its stated objectives, for failure to comply with statutory requirements or the Board’s rules for approved independent schools, or for failure to report under subdivision (4) of this subsection (b). Upon that revocation or suspension, students required to attend school who are enrolled in that school shall become truant unless they enroll in a public school, an approved or recognized independent school, or a home study program.

(6) This subdivision applies to an independent school located in Vermont that offers a distance learning program and that, because of its structure, does not meet some or all the rules of the State Board for approved independent schools. In order to be approved under this subdivision, a school shall meet the standards adopted by rule of the State Board for approved independent schools that can be applied to the applicant school and any other standards or rules adopted by the State Board regarding these types of schools. A school approved under this subdivision shall not be eligible to receive tuition payments from public school districts under chapter 21 of this title.

(7) Approval for independent residential schools under this subsection is also contingent upon proof of the school’s satisfactory completion of an annual fire safety inspection by the Department of Public Safety or its designee pursuant to 20 V.S.A. chapter 173, subchapter 2. A certificate executed by the inspecting entity, declaring satisfactory completion of the inspection and identifying the date by which a new inspection must occur, shall be posted at the school in a public location. The school shall provide a copy of the certificate to the Secretary of Education after each annual inspection. The school shall pay the actual cost of the inspection unless waived or reduced by the inspecting entity.

(8)(A) If an approved independent school experiences any of the following financial reporting events during the period of its approved status, the school shall notify the Secretary of Education within five days after its knowledge of the event unless the failure is de minimis:

(i) the school’s failure to file its federal or State tax returns when due, after permissible extension periods have been taken into account;

(ii) the school’s failure to meet its payroll obligations as they are due or to pay federal or State payroll tax obligations as they are due;

(iii) the school’s failure to maintain required retirement contributions;

(iv) the school’s use of designated funds for nondesignated purposes;

(v) the school’s inability to fully comply with the financial terms of its secured installment debt obligations over a period of two consecutive months, including the school’s failure to make interest or principal payments as they are due or to maintain any required financial ratios;

(vi) the withdrawal or conditioning of the school’s accreditation on financial grounds by a private, State, or regional agency recognized by the State Board for accrediting purposes; or

(vii) the school’s insolvency, as defined in 9 V.S.A. § 2286(a).

(B)(i) If the Secretary reasonably believes that an approved independent school lacks financial capacity to meet its stated objectives during the period of its approved status, then the Secretary shall notify the school in writing of the reasons for this belief and permit the school a reasonable opportunity to respond.

(ii) If the Secretary, after having provided the school a reasonable opportunity to respond, does not find that the school has satisfactorily responded or demonstrated its financial capacity, the Secretary may establish a review team that, with the consent of the school, includes a member of the Council of Independent Schools, to:

(I) conduct a school visit to assess the school’s financial capacity;

(II) obtain from the school such financial documentation as the review team requires to perform its assessment; and

(III) submit a report of its findings and recommendations to the State Board.

(iii) If the State Board concludes that an approved independent school lacks financial capacity to meet its stated objectives during the period of its approved status, the State Board may take any action that is authorized by this section.

(iv) In considering whether an independent school lacks financial capacity to meet its stated objectives during the period of its approved status and what actions the State Board should take if it makes this finding, the State Board may consult with, and draw on the analytical resources of, the Vermont Department of Financial Regulation.

(C) Information provided by an independent school under this subsection that is not already in the public domain is exempt from public inspection and copying under the Public Records Act and shall be kept confidential.

(c) Recognized independent schools. Upon filing an enrollment notice, a recognized independent school may provide elementary or secondary education in Vermont. The enrollment notice shall be on a form provided by the Secretary and shall be filed with the Secretary no earlier than three months before the beginning of the school year for the public schools in the town in which the applicant proposes to locate.

(1) The enrollment notice shall contain the following information and assurances:

(A) a statement that the school will be in session an amount of time substantially equivalent to that required for public schools;

(B) a detailed description or outline of the minimum course of study for each grade level the school offers and how the annual assessment of each student will be performed; and

(C) assurances that:

(i) the school will prepare and maintain attendance records for each student enrolled or regularly attending classes;

(ii) at least once each year, the school will assess each student’s progress, and will maintain records of that assessment, and present the result of that assessment to each student’s parent or guardian;

(iii) the school’s educational program will include the minimum course of study set forth in section 906 of this title;

(iv) the school will have teachers and materials sufficient to carry out the school’s educational program; and

(v) the school will meet such State and federal laws and regulations concerning its physical facilities and health and safety matters as are applicable to recognized independent schools.

(2) If the Secretary has information that creates significant doubt about whether the school would be able to meet the requirements set forth in this subsection, the Secretary may call a hearing. At the hearing, the school shall establish that it can meet the requirements for recognized independent schools. Failure to do so shall result in a finding by the Secretary that the school must take specified action to come into compliance within a specified time frame or the children enrolled must attend another recognized independent school, a public school, an approved independent school, or a home study program, or be declared truant unless absent with legal excuse.

(3) A recognized independent school shall provide to each student’s parent or guardian a copy of its currently filed statement of objectives and a copy of this section. The copy shall be provided when the student enrolls or before September 1, whichever comes later. Failure to comply with this subsection may create a permissible inference of false advertising in violation of 13 V.S.A. § 2005.

(4) A recognized independent school shall renew its enrollment notice annually. An independent school shall be recognized for a period not to exceed five years by the Secretary without need for filing an annual enrollment notice if:

(A) it is recognized by an organization approved by the State Board for the purpose of recognizing such school; or

(B) it is accredited by a private, state, or regional agency approved by the State Board for accrediting purposes; provided, however, nothing in this subdivision (4) shall be construed to prohibit the Secretary from initiating a hearing under this subsection (c).

(5) If the Secretary has information that creates significant doubt about whether the school, once in operation, is meeting the requirements for recognized independent schools, the Secretary may call a hearing. At the hearing, the school shall establish that it has met the requirements for recognized independent schools. Failure to do so shall result in a finding by the Secretary that:

(A) the school may not be in operation for the remainder of the school year and that the children are truant unless absent with legal excuse or enrolled in a public school, an independent school, another recognized independent school, or a home study program; or

(B) the school must take specified action to come into compliance within a specified time frame or the school will not be permitted to operate for the remainder of the school year.

(6) Each recognized independent school shall provide to the Secretary on October 1 of each year the names, genders, dates of birth, and addresses of its enrolled students. Within seven days of the termination of a student’s enrollment, the recognized independent school shall notify the Secretary of the name and address of the student. The Secretary shall notify the appropriate school officials as provided in section 1126 of this title.

(7) After the filing of the enrollment notice or at a hearing, if the school is unable to comply with any specific requirements due to deep religious conviction shared by an organized group, the Secretary may waive such requirements if he or she determines that the educational purposes of this subsection are being or will be substantially met.

(d) Council of Independent Schools. A Council of Independent Schools is created consisting of 11 members, no fewer than three of whom shall be representatives of recognized independent schools. The Secretary shall appoint nine members from within the independent schools’ community. The Secretary shall appoint two members from the public-at-large. Each member shall serve for two years and may be reappointed for up to an additional two terms. The Council shall adopt rules for its own operation. A chair shall be elected by and from among the members. The duties of the Council shall include advising the Secretary on policies and procedures with respect to independent schools. No hearing shall be initiated under this section before the State Board or by the Secretary until the recommendations of the Council have been sought and received. The recommendations of the Council, including any minority reports, shall be admissible at the hearing.

(e) Harassment, hazing, and bullying policies. The board of trustees of an approved or recognized independent school operating in Vermont shall adopt harassment, hazing, and bullying prevention policies; establish procedures for dealing with harassment, hazing, and bullying of students; and provide notice of these. The provisions of chapter 9, subchapter 5 of this title for public schools shall apply to this subsection, except that the board shall follow its own procedures for adopting policy.

(f) Tuition bills. An approved independent school that accepts students for whom the district of residence pays tuition under chapter 21 of this title shall bill the sending district monthly for a State-placed student and shall not bill the sending district for any month in which the State-placed student was not enrolled.

(g) Tuition students; assessments. An approved independent school that accepts students for whom the district of residence pays tuition under chapter 21 of this title shall use the assessment or assessments required under subdivision 164(9) of this title to measure attainment of standards for student performance of those students. In addition, the school shall provide data related to the assessment or assessments as required by the Secretary.

(Amended 1981, No. 151 (Adj. Sess.), § 8; 1983, No. 248 (Adj. Sess.), § 3; 1989, No. 44, § 1; 1993, No. 162 (Adj. Sess.), § 3; 1995, No. 157 (Adj. Sess.), § 2; 1997, No. 60, § 5, eff. June 26, 1997; 1997, No. 84 (Adj. Sess.), § 2; 1999, No. 120 (Adj. Sess.), § 5; 2007, No. 66, § 2; 2007, No. 138 (Adj. Sess.), § 1, eff. May 9, 2008; 2009, No. 153 (Adj. Sess.), § 21b; 2013, No. 92 (Adj. Sess.), § 13, eff. Feb. 14, 2014; 2017, No. 173 (Adj. Sess.), § 20, eff. May 25, 2018; 2017, No. 173 (Adj. Sess.), § 20a, eff. July 1, 2023; 2019, No. 131 (Adj. Sess.), § 54; 2021, No. 20, § 51; 2021, No. 166 (Adj. Sess.), § 14, eff. June 1, 2022.)

§ 166a Repealed

[Repealed]

1987, No. 97, § 8, eff. June 23, 1987.

§ 166b Home study program

(a) Enrollment notice. A parent or legal guardian shall send the Secretary notice of intent to enroll the parent’s or legal guardian’s child in a home study program at least 10 business days prior to commencing home study. Such notice shall be submitted via a form developed by the Agency of Education. A notice under this subsection shall include the following:

(1) The name; age; and date, month, and year of birth of the child.

(2) The names, mailing addresses, email addresses, town of legal residence, and telephone numbers of all parents or guardians with legal custody who are legally authorized to make educational decisions for the student.

(3) An attestation that the academic progress of each child enrolled in a home study program will be assessed at the end of each school year and that the parent or guardian will maintain the record of such assessments. Permitted means of assessment shall include:

(A) a standardized assessment, which may be administered by the local school district or a testing service or administered in a manner approved by the testing company;

(B) a review of the student’s progress by an individual who holds a current Vermont teacher’s certificate;

(C) a parent or guardian report and portfolio to include a summary of what the student learned during the school year and at least four samples of student work;

(D) grades from an online academy or school; or

(E) evidence of passing of the GED.

(4) For each child not previously enrolled in a Vermont public school or Vermont home study program, independent professional evidence regarding whether the child has a documented disability and how the disability may affect the student’s educational progress in a home study program.

(5) An attestation that each child being enrolled in home study will be provided the equivalent of at least 175 days of instruction in the minimum course of study per year, specifically:

(A) for a child who is younger than 13 years of age, the subject areas listed in section 906 of this title;

(B) for a child who is 13 years of age or older, the subject areas listed in subdivisions 906(b)(1), (2), (4), and (5) of this title; or

(C) for students with documented disabilities, a parent or guardian must attest to providing adaptations to support the student in the home study program.

(6) [Repealed.]

(7) The signatures of all parents or guardians with legal custody who are legally authorized to make educational decisions for the student. In the alternative, the parent seeking enrollment may provide attestation of sole primary educational decision-making authority.

(b) Enrollment. Within 10 business days following submission of a complete enrollment notice, the Secretary or designee shall send the home study program a written acknowledgment of receipt, which shall constitute sufficient enrollment verification for purposes of section 1121 of this title.

(1) [Repealed.]

(2) [Repealed.]

(c) Withdrawal. The parent or guardian shall notify the Secretary in writing within 10 business days following the date that any student is withdrawn from the student’s home study program.

(d) [Repealed.]

(e) [Repealed.]

(f) [Repealed.]

(g) [Repealed.]

(h) [Repealed.]

(i) [Repealed.]

(j) Waiver. After the filing of the enrollment notice, if the home study program is unable to comply with any specific requirements due to deep religious conviction shared by an organized group, the Secretary may waive such requirements if the Secretary determines that the educational purposes of this section are being or will be substantially met.

(k) Annual notice. A parent or guardian who has provided a complete enrollment notice as described in subsection (a) of this section shall notify the Secretary on or before the start of each following year of the parent’s or guardian’s intention to continue to provide instruction through a home study program via a form provided by the Agency of Education. This notice shall be provided at least 10 business days prior to the intended start date of the home study program.

(l) [Repealed.]

(Added 1987, No. 97, § 3, eff. June 23, 1987; amended 1989, No. 44, § 6, eff. June 1, 1990; 1989, No. 118, § 3; 1991, No. 24, § 11; 1995, No. 100 (Adj. Sess.), § 1; 2005, No. 107 (Adj. Sess.), § 1; 2013, No. 92 (Adj. Sess.), § 14, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 55; 2023, No. 66, § 5, eff. July 1, 2023.)

§ 167 High school equivalence certificate

The State Board is authorized to grant high school equivalency certificates to any person who has not been graduated from a high school on the basis of credits earned in the U.S. Armed Forces, credits earned in approved schools for adults, or satisfactory scores obtained on approved examinations.

(Added 1969, No. 298 (Adj. Sess.), § 18.)

§ 167a Contract for sale and distribution of historical textbook

(a) The State Board may contract with the Vermont Historical Society or other organization or organizations that it deems responsible to permit the use of any rights and physical properties owned by the State of Vermont in the textbook, “Vermont, A History of the Green Mountain State” for reproduction of the textbook for sale and distribution to the general public.

(b) The contracts shall provide among other provisions:

(1) that libraries and public or private schools located within the State shall be allowed to purchase an adequate number of copies of the textbook for their own use at the actual cost of publication exclusive of promotional costs; and

(2) that sales of the textbook to purchasers other than schools and libraries in the State of Vermont shall include provision for payment of royalty approved by the State Board to Edmund Fuller, author, but not to exceed 15 percent of the total retail selling price, the royalty to be paid by the organization or organizations; and

(3) that there shall be paid into the State Treasury by the organization or organizations for the use of the State a percentage of the retail selling price of each textbook sold to the general public, the percentage to be agreed upon between the State Board and the organization or organizations.

(Added 1969, No. 298 (Adj. Sess.), § 24; 2013, No. 92 (Adj. Sess.), § 15, eff. Feb. 14, 2014.)

§ 168 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 17, eff. Feb. 14, 2014.

§ 169 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 18, eff. Feb. 14, 2014.

§ 170 Control by federal agencies prohibited

No department, agency, officer, or employee of the United States shall, because of any provision of this title, direct, supervise, control, or prescribe in any manner, the administration, personnel, curriculum, or instruction in the public schools of Vermont.

(Added 1969, No. 298 (Adj. Sess.), § 21.)

§ 171 Repealed

[Repealed]

1983, No. 247 (Adj. Sess.), § 4(2).

§ 172 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 21, eff. Feb. 14, 2014.

§ 173 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 15, eff. Feb. 14, 2014.

§ 174 Repealed

[Repealed]

1981, No. 124 (Adj. Sess.), § 2, eff. March 2, 1982.

Subchapter 2 Postsecondary Schools

§ 175 Postsecondary educational institutions; closing

(a) When an institution of higher education, whether or not chartered in this State, proposes to discontinue the regular course of instruction, either permanently or for a temporary period other than a customary vacation period, the institution shall:

(1) promptly inform the State Board;

(2) prepare the academic record of each current and former student in a form satisfactory to the State Board and including interpretive information required by the Board; and

(3) deliver the records to a person designated by the State Board to act as permanent repository for the institution’s records, together with the reasonable cost of entering and maintaining the records.

(b) Persons acting as a repository may microfilm records received under this section.

(c) Students and former students of the discontinuing institution shall be entitled to verified copies of their records upon payment of a reasonable fee.

(d) When an institution of higher education is unable or unwilling to comply substantially with the record preparation and delivery requirements of subsection (a) of this section, the State Board shall bring an action in Superior Court to compel compliance with this section, and may in a proper case obtain temporary custody of the records.

(e) When an institution of higher education is unable or unwilling to comply with the requirements of subsection (a) of this section, the State Board may expend State funds necessary to ensure the proper storage and availability of the institution’s records. The Attorney General shall then seek recovery under this subsection, in the name of the State, of all of the State’s incurred costs and expenses, including attorney’s fees, arising from the failure to comply. Claims under this subsection shall be a lien on all the property of a defaulting institution, until all claims under this subsection are satisfied. The lien shall take effect from the date of filing notice thereof in the records of the town or towns where property of the defaulting institution is located.

(f) The State Board shall adopt rules under this section for its proper administration. The rules may include provisions for preparing and maintaining transferred records. Persons acting as a repository of records are bound only by maintenance provisions to which they agreed before receiving transferred records.

(g) The Association of Vermont Independent Colleges (AVIC) shall maintain a memorandum of understanding with each of its member colleges under which each member college agrees to:

(1) upon the request of AVIC, properly administer the student records of a member college that fails to comply with the requirements of subsection (a) of this section; and

(2) contribute on an equitable basis and in a manner determined in the sole discretion of AVIC to the costs of another AVIC member or other entity selected by AVIC maintaining the records of a member college that fails to comply with the requirements of subsection (a) of this section.

(Added 1979, No. 49, § 1, eff. April 25, 1979; amended 2017, No. 49, § 36, eff. Oct. 1, 2017.)

§ 176 Postsecondary schools chartered in Vermont

(a) Applicability. Except as provided in subsection (d) of this section, any postsecondary school that operates primarily or exclusively in the State of Vermont is subject to this section.

(b) Definitions. As used in this subchapter:

(1) “Postsecondary school” means any person who offers or operates a program of college or professional education for credit or a degree and enrolls or intends to enroll students.

(2) “Offer” includes the use in the name of an institution or in its promotional material of a term such as “college,” “university,” or “institute” that is intended to indicate that it is an institution that offers postsecondary education.

(3) “Degree” means any award that is given by a postsecondary school for completion of a program or course and that is designated by the term degree, associate, bachelor, baccalaureate, master’s, or doctorate, or any similar award that the State Board includes by rule.

(4) “Operate” means to establish, keep, or maintain any facility or location from or through which education is offered or given, or educational degrees are offered or granted. The term includes contracting with any person to perform any such act.

(5) “Accredited” means accredited by any regional, national, or programmatic institutional accrediting agency recognized by the U.S. Department of Education.

(c) State Board approval.

(1) Every postsecondary school that is subject to this section shall:

(A) apply for a certificate of approval from the State Board prior to registering its name with the Secretary of State pursuant to Title 11, Title 11A, or Title 11B;

(B) apply for and receive a certificate of approval from the State Board prior to offering postsecondary credit-bearing courses or programs and prior to admitting the first student; and

(C) provide written notification to each applicant for admission or enrollment, on an application, enrollment, or registration form to be signed by the applicant, that credits earned at the school are transferable at the discretion of the receiving school.

(2) Every postsecondary school shall secure a certificate of degree-granting authority from the State Board before it confers or offers to confer a degree.

(d) Exemptions. The following are exempt from the requirements of this section except for the requirements of subdivision (c)(1)(C) of this section:

(1) Nondegree-granting and noncredit-granting programs of education sponsored by a trade, labor, business, or professional organization that are conducted solely for that organization’s membership or for members of the particular industries or professions served by that organization.

(2) The University of Vermont and the Vermont State Colleges.

(3) Postsecondary schools currently licensed or approved by a Vermont State occupational licensing board.

(4) Postsecondary schools that are accredited. The following postsecondary institutions are accredited, meet the criteria for exempt status, and are authorized to operate educational programs beyond secondary education, including programs leading to a degree or certificate: Bennington College, Champlain College, Landmark College, Middlebury College, Norwich University, Saint Michael’s College, SIT Graduate Institute, Sterling College, Vermont College of Fine Arts, and Vermont Law and Graduate School. This authorization is provided solely to the extent necessary to ensure institutional compliance with federal financial aid-related regulations, and it does not affect, rescind, or supersede any preexisting authorizations, charters, or other forms of recognition or authorization.

(5) Nondegree-granting and noncredit-granting postsecondary schools that offer only training in specific trades or vocations.

(6) Religious instruction that does not result in earning credits or a degree.

(e) Issuance. On proper application, the State Board shall issue a certificate of approval or a certificate of degree-granting authority, or both, to an applicant whose goals, objectives, programs, and resources, including personnel, curriculum, finances, and facilities, are found by the State Board to be adequate and appropriate for the stated purpose and for the protection of students and the public interest. The certificate shall be for a term not exceeding five years. The certificate may be subject to conditions, terms, or limitations.

(f) Renewal. Certificates under this section may be renewed on application in the same manner as originally issued.

(g) Revocation. Any certificate may be revoked by the State Board at any time for good cause relating to the conditions, terms, and limitations of approval.

(h) Advice. Prior to any action taken by the State Board with respect to any application for degree-granting authority, the Board shall obtain the advice of the Vermont Higher Education Council, Incorporated.

(i) Rules; investigations. The Board may adopt rules and perform investigations in order to effectuate the purposes of this section.

(j) Cessation. In the event that a postsecondary school does not comply with the provisions of subsection (c) of this section or is denied the issuance of a certificate of approval or a certificate of degree-granting authority, the postsecondary school shall forthwith cease to operate.

(k) Enforcement. The Attorney General, upon request of the State Board, may bring an action to enjoin the operation of a postsecondary school that is operating in violation of this section.

(l) Violations. Any person, group, or entity, or any owner, officer, agent, or employee thereof, who willfully violates subsection (c) or (j) of this section shall be fined not to exceed $1,000.00 or imprisoned for not more than one year, or both. Each day’s violation shall be a separate violation.

(m) Reciprocity. Nothing in this chapter shall prohibit the State from participating in any interstate reciprocity agreement for the purpose of authorizing online postsecondary programs. For purposes of reciprocity between states for institutional authorization, the Secretary, or other Vermont agency as appropriate, shall investigate any complaints related to Vermont institutions participating in a recognized interstate reciprocity agreement.

(Added 1981, No. 124 (Adj. Sess.), § 1, eff. March 2, 1982; amended 1989, No. 263 (Adj. Sess.), § 1, eff. June 20, 1990; 2001, No. 19, § 1; 2003, No. 107 (Adj. Sess.), § 1; 2011, No. 58, § 19, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 23, eff. Feb. 14, 2014; 2013, No. 179 (Adj. Sess.), § E.500.4; 2017, No. 49, § 25, eff. May 23, 2017; 2021, No. 20, § 52; 2025, No. 72, § 3, eff. June 27, 2025.)

§ 176a Postsecondary schools not chartered in Vermont

(a) Applicability. Except as provided in subsection (e) of this section, a postsecondary school that operates primarily outside the State of Vermont, offers or operates a program of college or professional education for credit or a degree, and wishes to operate in Vermont is subject to this section and to subsections 176(g) through (l) of this title.

(b) [Repealed.]

(c) Requirements. A postsecondary school subject to this section shall:

(1) register its name with the Secretary of State pursuant to Title 11, 11A, or 11B;

(2) secure accreditation by any regional, national, or programmatic institutional accrediting agency recognized by the U.S. Department of Education;

(3) apply for and receive a certificate of approval or a certificate of degree-granting authority, or both pursuant to subsection 176(e) of this title prior to offering postsecondary credit-bearing courses or programs, admitting the first student, or conferring or offering to confer a degree to a student enrolled in its Vermont school;

(4) meet any requirements for approval in its state of primary operation for the specific degree or credit-bearing course or program that it intends to offer in Vermont;

(5) register with the Agency pursuant to State Board rule; and

(6) provide written notification to each applicant for admission or enrollment, on an application, enrollment, or registration form to be signed by the applicant, that credits earned at the school are transferable at the discretion of the receiving school.

(d) Renewal. After receiving initial approval, a postsecondary school subject to this section shall register annually with the State Board of Education by providing evidence of accreditation and approval by the state in which it primarily operates and any other documentation the Board requires. The State Board may refuse or revoke registration at any time for good cause.

(e) Exemptions. The following are exempt from the provisions of this section:

(1) Nondegree-granting and noncredit-granting programs of education sponsored by a trade, labor, business, or professional organization that are conducted solely for that organization’s membership or for members of the particular industries or professions served by that organization.

(2) Postsecondary schools currently licensed or approved by a Vermont occupational licensing board.

(3) Nondegree-granting or noncredit-granting postsecondary schools that offer only training in specific trades or vocations.

(4) Religious instruction that does not result in earning credits or a degree.

(5) Programs of education offered solely via correspondence, the Internet, or electronic media, provided that the postsecondary school has no physical presence in Vermont. Evidence of a “physical presence” includes the existence of administrative offices, seminars conducted by a person who is physically present at the seminar location, the provision of direct services to students, and required physical gatherings.

(6) Programs of education offered solely via the Internet or electronic media, provided that the program’s home state has entered into an interstate reciprocity agreement with Vermont and the program:

(A) is a member in good standing of the agreement within the home state; and

(B) has no “physical presence” in Vermont as that term is defined in the agreement.

(Added 1989, No. 263 (Adj. Sess.), § 2, eff. June 20, 1990; amended 2001, No. 19, § 2; 2003, No. 107 (Adj. Sess.), § 2; 2011, No. 58, § 20, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 24, eff. Feb. 14, 2014; 2013, No. 179 (Adj. Sess.), § E.500.5.)

§ 177 Postsecondary approval; fees

(a) A postsecondary school subject to section 176 of this title shall pay:

(1) a fee of $4,000.00 for an application for approval to offer credit-bearing courses;

(2) a fee of $5,000.00 for an application for degree-granting authority if the postsecondary school is approved to offer credit-bearing courses; and

(3) a fee of $7,500.00 if the school seeks approval under subdivisions (1) and (2) of this subsection simultaneously.

(b) If a postsecondary school that is subject to section 176 of this title and is operating within an unexpired certification period files an application to offer a new degree at the same level as a degree previously approved by the State Board, then the fee shall be based upon the actual costs to the Agency but shall not be less than $1,000.00 for each new degree.

(c) A postsecondary school subject to section 176a of this title shall pay:

(1) the fees set forth in subsection (a) of this section for initial review and approval pursuant to subdivision 176a(c)(3) of this title;

(2) a fee of $1,000.00 for initial registration with the Agency pursuant to subdivision 176a(c)(5) of this title; and

(3) an annual fee of $500.00 to renew its registration to operate in Vermont pursuant to subsection 176a(d) of this title.

(d) Fees assessed under this section are not refundable.

(e) Fees assessed under this section shall be credited to a special fund established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and shall be available to the Agency to offset the costs of approval.

(Added 1989, No. 263 (Adj. Sess.), § 3, eff. June 20, 1990; amended 1997, No. 59, § 24, eff. June 30, 1997; 2003, No. 70 (Adj. Sess.), § 25, eff. March 1, 2004; 2011, No. 58, § 21, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 25, eff. Feb. 14, 2014.)

§ 178 Harassment and hazing prevention policies; postsecondary schools

(a) The board of trustees or other governing body of each postsecondary school operating in Vermont shall adopt and ensure enforcement of a policy establishing that harassment as defined in subdivision 11(a)(26) of this title is a form of unlawful discrimination and therefore prohibited. The board shall also require the establishment of procedures to address complaints of discriminatory harassment and to initiate educational programs designed to prevent such conduct.

(b) The board of trustees or other governing body of each postsecondary school operating in Vermont shall adopt and ensure enforcement of a policy prohibiting hazing, which shall define hazing in a manner that is at least as stringent as the definition contained in subdivision 11(a)(30) of this title. The policy shall include penalties or sanctions, or both, for organizations that or individuals who engage in hazing; revocation or suspension of an organization’s permission to operate or exist within the institution’s purview if that organization knowingly permits, authorizes, or condones hazing; and clear delineation of circumstances under which hazing will be reported to a law enforcement agency. A summary of the policy shall be distributed to all students at least annually.

(Added 2009, No. 106 (Adj. Sess.), § 1, eff. May 13, 2010; amended 2013, No. 92 (Adj. Sess.), § 26.)

§ 179 Repealed

[Repealed]

2003, No. 78 (Adj. Sess.), § 1.

§ 180 Student rights—Freedom of expression

(a)(1) The General Assembly finds that freedom of expression and freedom of the press are fundamental principles in our democratic society granted to every citizen of the nation by the First Amendment to the U.S. Constitution and to every resident of this State by Vt. Const. Ch. I, Art. 13.

(2) These freedoms provide all citizens, including students, with the right to engage in robust and uninhibited discussion of issues.

(3) The General Assembly intends to ensure free speech and free press protections for both public school students and students at public institutions of higher education in this State in order to encourage students to become educated, informed, and responsible members of society.

(b) As used in this chapter:

(1) “Media adviser” means an individual employed, appointed, or designated by a school or its governing body to supervise or provide instruction relating to school-sponsored media.

(2) “School” means a public postsecondary school operating in the State.

(3) “School-sponsored media” means any material that is prepared, written, published, or broadcast as part of a school-supported program or activity by a student journalist and is distributed or generally made available as part of a school-supported program or activity to an audience beyond the classroom in which the material is produced.

(4) “Student journalist” means a student enrolled at a school who gathers, compiles, writes, edits, photographs, records, or prepares information for dissemination in school-sponsored media.

(5) “Student supervisor” is a student who is responsible for editing school-sponsored media.

(c)(1) Subject to subsection (e) of this section, a student journalist may exercise freedom of speech and freedom of the press in school-sponsored media.

(2) Subdivision (1) of this subsection shall not be construed to be limited by the fact that the school-sponsored media are:

(A) supported financially by a school or its governing body, or by use of facilities owned by the school; or

(B) produced in conjunction with a class in which the student journalist is enrolled.

(d)(1) Subject to subsection (e) of this section, the student supervisors of school-sponsored media are responsible for determining the content of their respective media.

(2) Subject to subdivision (1) of this subsection, a media adviser may teach professional standards of English and journalism to student journalists.

(e) This section shall not be construed to authorize or protect content of school-sponsored media that:

(1) is libelous or slanderous;

(2) constitutes an unwarranted invasion of privacy;

(3) may be defined as obscene, gratuitously profane, threatening, or intimidating;

(4) may be defined as harassment, hazing, or bullying under section 11 of this title;

(5) violates federal or State law; or

(6) creates the imminent danger of materially or substantially disrupting the ability of the school to perform its educational mission.

(f) Absent a showing that a particular publication will cause direct, immediate, and irreparable harm that would warrant the issuance of a prior restraint order against the private media, school officials are not authorized to censor or subject to prior restraint the content of school-sponsored media. Content shall not be suppressed solely because it involves political or controversial subject matter or is critical of the school or its administration.

(g) A student journalist may not be disciplined for acting in accordance with this section.

(h) A media adviser may not be dismissed, suspended, disciplined, reassigned, or transferred for:

(1) taking reasonable and appropriate action to protect a student journalist for engaging in conduct protected by this section; or

(2) refusing to infringe on conduct that is protected by this section, by the first amendment to the U.S. Constitution, or by the Vermont Constitution.

(i) Each school or its governing body shall adopt a written policy consistent with the provisions of this section.

(j) No expression made by students in school-sponsored media shall be deemed to be an expression of school policy.

(Added 2017, No. 49, § 47, eff. May 23, 2017; amended 2021, No. 20, § 53.)

§ 183 Intercollegiate Sexual Harm Prevention Council

(a) Creation. There is created the Intercollegiate Sexual Harm Prevention Council to create a coordinated response to campus sexual harm across institutions of higher learning in Vermont.

(b) Membership.

(1) The Council shall be composed of the following members:

(A) a Title IX coordinator and a campus-based sexual harm prevention/education coordinator from an institution of higher learning, appointed by the Chancellor of the Vermont State Colleges;

(B) a Title IX coordinator and a campus-based sexual harm prevention/education coordinator from an institution of higher learning, appointed by the President of the University of Vermont;

(C) a Title IX coordinator and a campus-based sexual harm prevention/education coordinator from an institution of higher learning, appointed by the President of the Association of Vermont Independent Colleges;

(D) two community-based sexual violence advocates, appointed by the Network Against Domestic and Sexual Violence;

(E) two law enforcement or public safety representatives with experience responding to and investigating campus sexual violence, appointed by the Commissioner of Public Safety;

(F) three college students, at least one of whom has lived experience as a sexual violence survivor and one who represents a campus-based racial justice organization, appointed by the Center for Crime Victim Services;

(G) a person with expertise in sexual violence responses within the lesbian, gay, bisexual, transgender, and queer community, appointed by the Center for Crime Victim Services;

(H) a sexual assault nurse examiner, appointed by the Network Against Domestic and Sexual Violence;

(I) a prosecutor with experience in prosecuting sexual violence cases from either the Department of State’s Attorneys and Sheriffs or the Office of the Attorney General, appointed by the Attorney General; and

(J) an attorney with experience in sexual violence cases, appointed by the Defender General.

(2) To ensure a council that is reflective of Vermont’s college campuses, appointing authorities shall consider diversity when making appointments to the Council.

(c) Duties. The Council shall:

(1) review the recommendations from the Report of the Vermont Campus Sexual Harm Task Force and develop prevention solutions to sexual harm based on those recommendations;

(2) implement interdisciplinary planning and information sharing to support sexual violence prevention programs on every college campus in Vermont;

(3) undertake an annual review of trends in aggregate data collected by institutions of higher learning regarding sexual violence on college campuses in Vermont;

(4) identify and share effective practices on violence prevention, sexual health education, and strategies for mitigating sexual harm and secondary impacts of sexual harm on college campuses in Vermont;

(5) identify campus-wide activities, publications, and services that promote a campus culture of respect to support the prevention of sexual harm;

(6) recommend statutory protections to the General Assembly not later than November 1, 2021 to ensure that survivors of sexual harm are not punished for reporting an incident of sexual violence due to alcohol, drug use, or other minor conduct violations occurring at or around the time of an assault; and

(7) create or promote annual training opportunities addressing prevention and sexual assault response processes open to representatives from all Vermont postsecondary schools.

(d) Assistance. The Council shall have the administrative and technical assistance of the Network Against Domestic and Sexual Violence.

(e) Report. On or before December 1, 2022 and annually thereafter, the Council shall submit a written report to the General Assembly with a summary of activities and any recommendations for legislative action.

(f) Meetings.

(1) The Network Against Domestic and Sexual Violence shall call the first meeting of the Council to occur on or before July 15, 2021.

(2) The Council shall select a chair from among its members at the first meeting.

(3) A majority of the membership shall constitute a quorum.

(4) The Council shall meet quarterly.

(5) Members who are not otherwise compensated by the member’s employer for attendance at meetings shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010. These payments shall be made from monies appropriated to the Network Against Domestic and Sexual Violence for such purposes.

(Added 2021, No. 68, § 6, eff. June 8, 2021; renumbered from 16 V.S.A. § 2187 by 2023, No. 114, § 5; amended 2023, No. 114 (Adj. Sess.), § 5, eff. July 1, 2024.)

§ 184 Student access to confidential sexual misconduct support services; collaboration with external partners

(a) Postsecondary schools shall ensure students have access to confidential sexual misconduct support services covered by victim and crisis worker privilege under applicable law, either on or off campus. Nothing in this subsection shall be construed to prohibit a postsecondary school from also facilitating student access to support services not covered by a victim and crisis worker privilege.

(b) If a postsecondary school is working with an external provider to provide confidential support services on its behalf, pursuant to subsection (a) of this section, and those support services are beyond those the external provider may provide as a matter of course to the general public, the postsecondary school shall enter into, and maintain, an agreement with the external provider. Agreements may address:

(1) assistance in development or delivery of programming and training regarding sexual misconduct involving students;

(2) collaborative marketing to make the campus community aware of the availability of confidential services from the external provider, either on or off campus, such as sexual assault crisis services, domestic violence crisis services, and sexual assault nurse examiner services;

(3) reciprocal education of school and external provider personnel to ensure a mutual understanding of the other’s role, responsibilities, and processes for receiving disclosures of sexual misconduct, the provision of support services, and options for resolution;

(4) reporting of data as required by federal law, if applicable, as well as reporting of de-identified aggregate information that will aid the school in identifying and addressing trends of concern; and

(5) use of school-provided space to meet confidentially with members of the campus community.

(c) All agreements executed pursuant to subsection (b) of this section shall be independently negotiated between the postsecondary school and external providers.

(Added 2023, No. 114 (Adj. Sess.), § 1, eff. July 1, 2024.)

§ 185 Amnesty protections

Postsecondary schools shall create and adopt an amnesty policy that prohibits disciplinary action against a student reporting or otherwise participating in a school sexual misconduct resolution process for alleged ancillary policy violations related to the sexual misconduct incident at issue; provided, however, the school may take disciplinary action if it determines that the conduct giving rise to the alleged ancillary policy violation placed or threatened to place the health and safety of another person at risk. This policy shall not be construed to limit a counter-complaint made in good faith or to prohibit action as to a report made in good faith.

(Added 2023, No. 114 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 186 Annual awareness programming and training

(a) A postsecondary school shall offer annual trauma-informed, inclusive, and culturally relevant sexual misconduct primary prevention and awareness programming to all students, staff, and faculty of the school. Primary prevention and awareness programming shall address, in a manner appropriate for the audience:

(1) an explanation of consent as it applies to sexual activity and sexual relationships;

(2) the role drugs and alcohol play in an individual’s ability to consent;

(3) information about on and off-campus options for reporting of an incident of sexual misconduct, including confidential and anonymous disclosure mechanisms, and the effects of each option;

(4) information on the school’s procedures for resolving sexual misconduct complaints and the range of sanctions the school may impose on those found responsible for a violation;

(5) the name and contact information of school officials responsible for coordination of supportive measures and an overview of the types of supportive measures available;

(6) the name, contact information, and services of confidential resources, on and off campus;

(7) strategies for bystander intervention and risk reduction;

(8) how to directly access health services, mental health services, and confidential resources both on and off-campus;

(9) opportunities for ongoing sexual misconduct prevention and awareness training and programming; and

(10) best practices for responding to disclosures of sexual misconduct.

(b) Information on the training topics contained in subsection (a) of this section, including on and off-campus supportive measures for reporting parties, shall be available in a centrally located place on the schools’ website.

(c) Schools shall endeavor to collaborate with community partners, such as local and statewide law enforcement, local and statewide prosecution offices, health care service providers, confidential service providers, and other relevant stakeholders, regarding the inclusion of appropriate information about the relevant stakeholders’ respective roles and offerings in primary prevention and awareness programming.

(Added 2023, No. 114 (Adj. Sess.), § 3, eff. July 1, 2024.)

Chapter 5 Secretary of Education

Subchapter 1 Secretary of Education

§§ 201-204 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 205 Repealed

[Repealed]

1961, No. 31, § 3.

§ 211 Repealed

[Repealed]

2011, No. 98 (Adj. Sess.), § 6, eff. January 1, 2013.

§ 212 Secretary’s duties generally

The Secretary shall execute those policies adopted by the State Board in the legal exercise of its powers and shall:

(1) Coordinate the educational work of the public schools with higher education in the State.

(2) Identify the educational goals of the public schools, provide alternative methods of attaining those goals, and promote education in the State.

(3) Evaluate the program of instruction in the public schools.

(4) Advise the General Assembly concerning proposed laws affecting the public schools.

(5) Supervise and direct the execution of the laws relating to the public schools and ensure compliance.

(6) Supervise the expenditure and distribution of all money appropriated by the State under the provisions of this title for public schools.

(7) Arrange conferences and summer schools for superintendents and teachers and employ suitable speakers, lecturers, and instructors for the same; fix the amount of tuition for the instruction; provide for educational gatherings, institutes, summer schools, and other supplementary educational activities; and provide for cooperation with the Board of Libraries established by 22 V.S.A. § 602 or the State Librarian.

(8) Inform citizens of the condition of and opportunities within the public education system and provide other educational publicity for the enlightenment and well-being of the citizens of the State.

(9) Establish requirements for information to be submitted by school districts, including necessary statistical data and other information and ensure, to the extent possible, that data are reported in a uniform way. Data collected under this subdivision shall include budget surplus amounts, reserve fund amounts, and information concerning the purpose and use of any reserve funds.

(10) Make recommendations to school boards regarding transportation policies.

(11) Provide an educational facilities planning service to make available technical assistance and comprehensive information on school construction, school systems design, component technology and suppliers, and similar subjects to public schools, school districts, and independent schools, for the purpose of helping them to achieve flexibility and economy in construction, to retain the potential for modification and expansion of educational facilities, and to attain the lowest maintenance costs consistent with educational needs.

(12) Distribute at his or her discretion upon request to approved independent schools appropriate forms and materials relating to the education quality standards for elementary and secondary students.

(13) Ensure the provision of services to children and adolescents with a severe emotional disturbance in coordination with the Departments of Mental Health, for Children and Families, and of Disabilities, Aging, and Independent Living pursuant to the provisions of 33 V.S.A. chapter 43.

(14) Annually, communicate to each superintendent a list of information that a supervisory union, a school board, a school district, a school, a school district employee, or a supervisory union employee is required under State or federal law to make available to the electorate, community members, parents, or students. It is the intent of this subdivision that the Secretary shall make a good faith effort to compile a complete list of the information to be made available. Due to the difficult nature of compiling such a list, it is also the intent that failure to include relevant information on the list shall not constitute grounds for an action against the Secretary.

(15) Annually, with the Commissioner of Health, shall jointly inform superintendents and principals of appropriate practices regarding students with life-threatening allergies and chronic illnesses; and prepare and distribute policies, training materials, and school guidelines for managing students with life-threatening allergies and chronic illnesses, including family responsibilities, school responsibilities, and student responsibilities.

(16) Annually, convene a meeting of directors of Vermont educator preparation programs and representatives of school boards, superintendents, principals, educators, and the Vermont Standards Board to determine subject and geographic areas in which there is a critical need for educators and to discuss ways to meet the need.

(17) Encourage and facilitate collaboration among school districts and supervisory unions to share information and expertise regarding low-incidence special education needs.

(18) Annually, inform superintendents and principals of regional resources available to assist schools to provide instruction in cardiopulmonary resuscitation and the use of automated external defibrillators and provide updated information to the education community regarding the provision of a comprehensive health education.

(19) Establish an information clearinghouse and accessible database to help districts share information about educational programs and practices that improve student performance. Educational programs and practices include those designed to create and sustain a safe learning environment.

(20) Develop, in consultation with the Secretary of State, and make available to school boards sample ballot language for issues that may be decided by Australian ballot and for which no statutory language exists.

(21) Prepare a budget for the Agency and submit it to the Governor after review by the State Board.

(22) Annually, prior to September 1, present the Governor’s education policy priorities to the State Board.

(Added 1969, No. 298 (Adj. Sess.), § 26; amended 1977, No. 224 (Adj. Sess.); 1987, No. 264 (Adj. Sess.), § 3; 1989, No. 187 (Adj. Sess.), § 5; 1991, No. 24, § 11; 1999, No. 108 (Adj. Sess.), § 1, eff. May 10, 2000; 2005, No. 127 (Adj. Sess.), § 1; 2005, No. 158 (Adj. Sess.), § 2; 2005, No. 214 (Adj. Sess.), § 1; 2007, No. 82, § 25; 2011, No. 58, § 8, eff. May 31, 2011; 2011, No. 98 (Adj. Sess.), § 5, eff. April 1, 2013; 2011, No. 129 (Adj. Sess.), § 1, eff. May 11, 2012; 2011, No. 151 (Adj. Sess.), § 2, eff. May 16, 2012; 2013, No. 92 (Adj. Sess.), § 28, eff. Feb. 14, 2014; 2015, No. 23, § 20; 2015, No. 132 (Adj. Sess.), § 5, eff. July 1, 2019; 2019, No. 131 (Adj. Sess.), § 56; 2021, No. 66, § 4, eff. June 7, 2021.)

§ 213 Deputy secretaries

The Secretary shall employ such number of deputy secretaries as he or she deems necessary.

(Added 1969, No. 298 (Adj. Sess.), § 26; amended 2013, No. 92 (Adj. Sess.), § 29, eff. Feb. 14, 2014.)

§ 214 Repealed

[Repealed]

1997, No. 163 (Adj. Sess.), § 5.

§ 215 Challenge to Excellence grants

(a) Purpose and findings. It is a goal of the General Assembly to promote quality education for every Vermont child and to create an opportunity for every Vermont student to achieve his or her personal best, while respecting divergent student goals and personal learning styles and abilities. The General Assembly finds that a school’s climate for learning is improved when parents, community members, and business leaders actively participate in promoting educational opportunities for every student. Further, it is the compassion and innovation of individual teachers and school personnel that often create the impetus for students to achieve excellence in education.

(b) Grant Program. The Secretary shall establish and implement a Challenge to Excellence Grant Program for the purpose of promoting quality education for Vermont students. Eligible applicants include Vermont public schools, including regional career technical centers, and Vermont supervisory unions on behalf of a school or schools. All proposals shall be to develop or carry out a comprehensive plan, which may be an action plan pursuant to subdivision 165(a)(1) of this title, to create educational opportunities for each student within the school. Any plan shall be developed with the involvement of parents and other community members, staff, and business representatives and shall be designed to assist students in meeting State Board and school board standards. Grants shall be for up to $50,000.00 and shall include a 1-1 match from other sources of funding, including grants from businesses, foundations, or other federal or local funding. Priority shall be given to schools that the Secretary finds are having difficulty meeting the quality standards listed in subsection 165(a) of this title or are making insufficient progress in improving student performance in relation to the standards set forth in subdivision 164(9) of this title. Eligible activities include:

(1) a comprehensive planning and goal-setting process to promote a quality education for all students within the school;

(2) activities to carry out a comprehensive plan to promote quality education for students within the school; and

(3) innovative methods to create educational opportunities for students according to a comprehensive plan, including special classes and activities; mentorship; summer institutes on math, science, reading and language arts, social studies, service, the arts, or technology; partnerships for learning with businesses, postsecondary schools, and community organizations; tutorials; programs for at-risk or gifted students; and guidance, peer counseling, and career planning activities.

(Added 1997, No. 60, § 7, eff. June 26, 1997; amended 2013, No. 92 (Adj. Sess.), § 30, eff. Feb. 14, 2014; 2021, No. 20, § 54.)

§ 216 Redesignated

[Redesignated]

2013, No. 92 (Adj. Sess.), § 5, eff. Feb. 14, 2014.

Subchapter 2 Superintendents

§ 241 Appointment

(a) Each supervisory union board, with the advice of the Secretary, may employ a superintendent of schools.

(b) A superintendent shall be employed by written contract for a term not to exceed five years nor less than one year and shall work the number of hours required by contract, performing the duties designated in the contract or assigned by the board. A superintendent of schools may be dismissed for cause or as specified in the contract of employment.

(c) Not later than May 15 of a year in which an incumbent superintendent’s contract of employment expires, the supervisory union board shall meet to renew or act otherwise upon the superintendent’s contract. If a supervisory union employs a superintendent, the supervisory union board shall specify and assign the duties of a superintendent. If the supervisory union board does not hire a superintendent, the board may assign any duties assigned to the superintendent under this title to the school principal or principals in the supervisory union or to other qualified persons designated by the board.

(Added 1969, No. 298 (Adj. Sess.), § 27; amended 1991, No. 181 (Adj. Sess.), § 1; 1995, No. 185 (Adj. Sess.), § 82, eff. Jan. 1, 1998; 2013, No. 92 (Adj. Sess.), § 31, eff. Feb. 14, 2014.)

§ 242 Duties of superintendents

The superintendent shall be the chief executive officer for the supervisory union board and for each school board within the supervisory union, and shall:

(1) Carry out the policies adopted by the school boards relating to the educational or business affairs of the school district or supervisory union, and develop procedures to do so.

(2) Prepare, for adoption by a local school board, plans to achieve the educational goals and objectives established by the school district.

(3)(A) Nominate a candidate for employment by the school district or supervisory union if the vacant position requires a licensed employee; provided, if the appropriate board declines to hire a candidate, then the superintendent shall nominate a new candidate;

(B) select nonlicensed employees to be employed by the district or supervisory union; and

(C) dismiss licensed and nonlicensed employees of a school district or the supervisory union as necessary, subject to all procedural and other protections provided by contract, collective bargaining agreement, or provision of State and federal law.

(4)(A) Provide data and information required by the Secretary and by using a format approved by the Secretary to:

(i) Report budgetary data for the subsequent school year and fiscal year.

(ii) Report all financial operations within the supervisory union to the Secretary and State Board for the preceding school year on or before August 15 of each year.

(iii) Report all financial operations for each member school district to the Secretary and State Board for the preceding school year on or before August 15 of each year.

(B) Prepare for each district an itemized report detailing the portion of the proposed supervisory union budget for which the district would be assessed for the subsequent school year identifying the component costs by category and explaining the method by which the district’s share for each cost was calculated; and provide the report to each district at least 14 days before a budget, including the supervisory union assessment, is voted on by the electorate of the district.

(5) Work with the school boards of the member districts to develop and implement policies regarding minimum and optimal average class sizes for regular and career technical education classes. The policies may be supervisory union-wide, may be course- or grade-specific, and may reflect differences among school districts due to geography or other factors.

(6) Arrange for the provision of the professional training required in subsection 561(b) of this title.

(7) Provide for the general supervision of the public schools in the supervisory union or district.

(Added 2003, No. 36, § 1; amended 2009, No. 153 (Adj. Sess.), § 10, eff. June 3, 2010; 2009, No. 153 (Adj. Sess.), § 15; 2013, No. 56, § 12, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 32, eff. Feb. 14, 2014; 2018, No. 11 (Sp. Sess.), § E.500.2.)

§ 242a Internal financial controls

(a) The superintendent or his or her designee shall annually, on or before December 31, complete and provide to the supervisory union board and to all member district boards a copy of the document regarding internal financial controls made available by the Auditor of Accounts pursuant to 32 V.S.A. § 163(11).

(b) The supervisory union board shall review the document provided by the superintendent within two months of receiving it.

(Added 2011, No. 155 (Adj. Sess.), § 29.)

Subchapter 3 Principals

§ 243 Appointment; renewal; dismissal

(a) Appointment. The school board of each school district operating a school, after recommendation by the superintendent, may designate a person as principal for each public school within the district, except that a principal may be selected to serve more than one school. In the case of a career technical center, only the school board that operates the center may designate a person as director. For purposes of this section, the word “principal” shall include a principal and the director of career technical education, and the term “public school” shall include a career technical center.

(b) Length of contract. The principal shall be employed by written contract for a term of not less than one year nor more than three years.

(c) Renewal and nonrenewal. A principal who has been continuously employed for more than two years in the same position has the right either to have his or her contract renewed, or to receive written notice of nonrenewal on or before February 1 of the year in which the existing contract expires. Nonrenewal may be based upon elimination of the position, performance deficiencies, or other reasons. The written notice shall recite the grounds for nonrenewal. If nonrenewal is based on performance deficiencies, the written notice shall be accompanied by an evaluation performed by the superintendent. At its discretion, the school board may allow a period of remediation of performance deficiencies prior to issuance of the written notice. After receiving such a notice, the principal may request in writing, and shall be granted, a meeting with the school board. Such request shall be delivered within 15 days of delivery of notice of nonrenewal, and the meeting shall be held within 15 days of delivery of the request for a meeting. At the meeting, the school board shall explain its position, and the principal shall be allowed to respond. The principal and any member of the board may present written information or oral information through statements of others, and the principal and the board may be represented by counsel. The meeting shall be in executive session unless both parties agree in writing that it be open to the public. After the meeting, the school board shall decide whether or not to offer the principal an opportunity to renew his or her contract. The school board shall issue its decision in writing within five days. The decision of the school board shall be final.

(d) Dismissal. During the term of a contract, a principal may be dismissed by the board for just and sufficient cause by written notice setting forth the grounds therefor. The board may provide that its order shall take effect immediately, or following a hearing. In either case, the principal shall be given an opportunity to request in writing a hearing within the 15 days following delivery of the notice. Within 15 days following receipt of a request for hearing from the principal, the board shall conduct such a hearing. The clerk of the board shall advise the principal and the superintendent of the time and place of hearing by written notice at least five days before the date of the hearing. The hearing shall be in executive session unless both parties agree in writing that it be open to the public. The principal and any member of the board may present witnesses and written evidence and cross-examine witnesses, and the principal and the board may be represented by counsel. Either the principal or the school board may arrange for the taking of a verbatim record of the proceedings. After the hearing, the board shall affirm, modify, or reverse its earlier action. Within five days after the conclusion of evidence in the case, the board shall issue a written decision that includes findings of fact and conclusions of law. Within 30 days of the day the written decision is delivered, the principal may appeal to the Superior Court under the rules for appeals from decisions in contested cases.

(e) Inclusion in contract. Every principal’s contract shall be deemed to contain the provisions of this section. Any contract provision to the contrary is without effect.

(Added 1977, No. 133 (Adj. Sess.); amended 1985, No. 164 (Adj. Sess.); 1989, No. 243 (Adj. Sess.), § 1; 1991, No. 204 (Adj. Sess.), § 7; 2017, No. 49, § 24, eff. May 23, 2017.)

§ 244 Duties of principals

(a) The principal shall perform all duties specifically assigned by law or by the superintendent of the school district including the administration of policies adopted by the school board. The principal shall be answerable to the superintendent in the performance of his or her duties.

(b) Without the approval of the State Board, secondary school principals shall not be charged with supervisory responsibility outside the secondary school.

(Amended 1983, No. 119 (Adj. Sess.), § 1; 1987, No. 228 (Adj. Sess.), § 4; 2013, No. 92 (Adj. Sess.), § 33, eff. Feb. 14, 2014.)

§ 245 Principals; technical center directors; mentoring

(a) When a school district hires a principal or a career technical center director who has not been employed previously in that capacity, the superintendent serving the district, in consultation with the Vermont Principals’ Association, shall work to ensure that the new principal or technical center director receives mentoring supports during at least the first two years of employment. Mentoring supports shall be consistent with best practices, research-based approaches, or other successful models, and shall be identified jointly by the Vermont Principals’ Association and the Vermont Superintendents Association.

(b) When a school district hires a principal or career technical center director identified in subsection (a) of this section, the district shall allocate sufficient funds annually in the first two years of employment toward the cost of providing the mentoring supports from one or more of the following sources:

(1) funds allocated by the district for professional development;

(2) grant monies obtained for the purpose of providing mentoring supports;

(3) State funds appropriated for the purpose of providing mentoring supports; or

(4) other sources.

(c) This section shall not be interpreted to prohibit or discourage a superintendent from working to ensure that any administrator other than those identified in subsection (a) of this section receives mentoring supports.

(Added 2011, No. 20, § 1, eff. May 11, 2011.)

Subchapter 4 Access to Criminal Records

§ 251 Policy

It is the policy of the State of Vermont to use criminal record checks to deter abuse and exploitation of school children and to do so in a manner that protects, as much as is practicable, the privacy of those subject to such checks.

(Added 1997, No. 163 (Adj. Sess.), § 1.)

§ 252 Definitions

As used in this subchapter:

(1) “Criminal record” means the record of:

(A) convictions in Vermont, including whether any of the convictions is an offense listed in 13 V.S.A. § 5401(10) (sex offender definition for registration purposes); and

(B) convictions in other jurisdictions recorded in other state repositories or by the Federal Bureau of Investigation (FBI).

(2) “School board” means the board of school directors of a school district or its equivalent in any independent school.

(3) “School district” means, unless the context otherwise clearly requires, a school district or a supervisory union.

(4) “Unsupervised” means not in the presence of a responsible adult in the employ of or under the direction of the independent school or school district.

(5) “User agreement” means an agreement between the Vermont Crime Information Center and a party requesting and receiving criminal record information that requires the party to comply with all federal and State laws, rules, regulations, and policies regulating the release of criminal record information and the protection of individual privacy.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2005, No. 54, § 17; 2009, No. 1, § 6b; 2009, No. 108 (Adj. Sess.), § 2.)

§ 253 Confidentiality of records

(a) Criminal records and criminal record information received under this subchapter are designated confidential unless, under State or federal law or regulation, the record or information may be disclosed to specifically designated persons.

(b) The Secretary, a superintendent, or a headmaster may disclose criminal records and criminal record information received under this subchapter to a qualified entity upon request, provided that the qualified entity has signed a user agreement and received authorization from the subject of the record request. As used in this section, “qualified entity” means an individual, organization, or governmental body doing business in Vermont that has one or more individuals performing services for it within the State and that provides care or services to children, persons who are elders, or persons with disabilities as defined in 34 U.S.C. § 40104.

(c) In accordance with 21 V.S.A. § 306, a board member, superintendent, or headmaster shall not enter into on behalf of a supervisory union, school district, or recognized or approved independent school a confidential employment separation agreement that inhibits the disclosure to prospective employers and responsible licensing entities of factual information about a prospective employee’s background that would lead a reasonable person to conclude that the prospective employee has engaged in conduct jeopardizing the safety of a minor. Notwithstanding any provision of law to the contrary under 33 V.S.A. chapter 49, a board member, superintendent, or headmaster and employees of a supervisory union, school district, or recognized or approved independent school shall provide factually correct information concerning a former employee’s employment record with the supervisory union, school district, or recognized or approved independent school to a prospective employer of that individual if requested by the prospective employer. Nothing in this subsection shall permit the disclosure of information that is prohibited from disclosure by subsection (b) of this section. Notwithstanding any provision of law to the contrary, a person shall not be subject to civil or criminal liability for disclosing information that is required by this section to be disclosed if the person was acting in good faith. This immunity from liability shall not apply when the information supplied by a person is knowingly false or rendered with a malicious purpose.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2013, No. 56, § 7c, eff. May 30, 2013; 2018, No. 5 (Sp. Sess.), § 2, eff. June 19, 2018; 2021, No. 20, § 55.)

§ 254 Educator licensure; employment of superintendents

(a) The Secretary shall sign and keep a user agreement with the Vermont Crime Information Center.

(b) The Secretary shall request and obtain from the Vermont Crime Information Center the criminal record for any person applying for an initial license as a professional educator or for reinstatement of a license that has lapsed pursuant to subdivision 256(a)(1)(C) of this title or for any person who is offered a position as superintendent of schools in Vermont.

(c) A request made under subsection (b) of this section shall be accompanied by a release signed by the person on a form provided by the Vermont Crime Information Center, a set of the person’s fingerprints, and a fee established by the Vermont Crime Information Center that shall reflect the cost of obtaining the record. The fee shall be paid by the applicant. The release form to be signed by the applicant shall include a statement informing the applicant of:

(1) the right to challenge the accuracy of the record by appealing to the Vermont Crime Information Center pursuant to rules adopted by the Commissioner of Public Safety; and

(2) the Secretary of Education’s policy regarding maintenance and destruction of records and the person’s right to request that the record or notice be maintained for purposes of using it to comply with future criminal record check requests made pursuant to section 256 of this title.

(d) Upon completion of a criminal record check required by subsection (b) of this section, the Vermont Crime Information Center shall send to the Secretary either a notice that no record exists or a copy of the record. If a copy of a criminal record is received, the Secretary shall forward it to the person and shall inform the person in writing of:

(1) the right to challenge the accuracy of the record by appealing to the Vermont Crime Information Center pursuant to rules adopted by the Commissioner of Public Safety; and

(2) the Secretary of Education’s policy regarding maintenance and destruction of records and the person’s right to request that the record or notice be maintained for purposes of using it to comply with future criminal record check requests made pursuant to section 256 of this title.

(e) The Secretary shall request and obtain information from the Child Protection Registry maintained by the Department for Children and Families and from the Vulnerable Adult Abuse, Neglect, and Exploitation Registry maintained by the Department of Disabilities, Aging, and Independent Living (collectively, the Registries) for any person for whom a criminal record check is required under subsection (b) of this section and shall request updated information for any person seeking renewal of a professional educator’s license. The Departments for Children and Families and of Disabilities, Aging, and Independent Living shall adopt rules governing the process for obtaining information from the Registries and for disseminating and maintaining records of that information under this subsection. A person denied a license based upon information acquired under this subsection may appeal the decision pursuant to subsection 1696(f) of this title.

(f) A person convicted of a sex offense that requires registration pursuant to 13 V.S.A. chapter 167, subchapter 3 shall not be eligible for an initial license as a professional educator, renewal of a license, reinstatement of a lapsed license, or employment as a superintendent of schools in Vermont under this section.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2005, No. 182 (Adj. Sess.), § 18; 2009, No. 1, § 4, eff. Dec. 31, 2010; 2013, No. 56, § 6, eff. May 30, 2013; 2013, No. 119 (Adj. Sess.), § 12.)

§ 255 Public and independent school employees; contractors

(a) Superintendents, headmasters of recognized or approved independent schools, and their contractors shall request criminal record information for the following:

(1) the person a superintendent or headmaster is prepared to recommend for any full-time, part-time, or temporary employment;

(2) any person directly under contract to an independent school or school district who may have unsupervised contact with school children;

(3) any employee of a contractor under contract to an independent school or school district who is in a position that may result in unsupervised contact with school children;

(4) any student working toward a degree in teaching who is a student teacher in a school within the superintendent’s or headmaster’s jurisdiction.

(b) After signing a user agreement, a superintendent or a headmaster shall make a request directly to the Vermont Crime Information Center. A contractor shall make a request through a superintendent or headmaster.

(c) A request made under subsection (b) of this section shall be accompanied by a set of the person’s fingerprints and a fee established by the Vermont Crime Information Center that shall reflect the cost of obtaining the record from the FBI. The fee shall be paid in accordance with adopted school board policy.

(d)(1) Upon completion of a criminal record check, the Vermont Crime Information Center shall send to the superintendent a notice that no record exists or, if a record exists, a copy of any criminal record.

(2) Upon completion of a criminal record check, the Vermont Crime Information Center shall send to the headmaster a notice that no record exists or, if a record exists:

(A) A copy of Vermont criminal convictions.

(B) A notice of any criminal record that is located in either another state repository or FBI records, but not a record of the specific convictions. However, if there is a record relating to any crimes of a sexual nature involving children, the Vermont Crime Information Center shall send this record to the Secretary who shall notify the headmaster in writing, with a copy to the person about whom the request was made, that the record includes one or more convictions for a crime of a sexual nature involving children.

(e) Information received by a superintendent or headmaster under subsection (d) of this section shall be forwarded as follows:

(1) In the case of a request other than one made on behalf of a contractor, the superintendent or headmaster shall forward a copy of the information to the person about whom the request was made.

(2) In the case of a request made on behalf of a contractor, the superintendent or headmaster shall inform the contractor in writing either that no record exists or that a record does exist but shall not reveal the content of the record to the contractor. The contractor shall then forward a copy of the information received to the person about whom the request was made.

(f) Information sent to a person by the Secretary, a headmaster, a superintendent, or a contractor under subsection (e) of this section shall be accompanied by a written notice of the person’s rights under subsection (g) of this section, a description of the policy regarding maintenance and destruction of records, and the person’s right to request that the notice of no record or record be maintained for purposes of using it to comply with future criminal record check requests pursuant to section 256 of this title.

(g)(1) Following notice that a headmaster was notified that a criminal record that is located in either another state repository or FBI records exists, a person may:

(A) sign a form authorizing the Vermont Crime Information Center to release a detailed copy of the criminal record to the person; or

(B) decline or resign employment.

(2) Any person subject to a criminal record check pursuant to this section may challenge the accuracy of the record by appealing to the Vermont Crime Information Center pursuant to rules adopted by the Commissioner of Public Safety.

(h) A superintendent or headmaster shall request and obtain information from the Child Protection Registry maintained by the Department for Children and Families and from the Vulnerable Adult Abuse, Neglect, and Exploitation Registry maintained by the Department of Disabilities, Aging, and Independent Living (collectively, the Registries) for any person for whom a criminal record check is required under subsection (a) of this section. The Department for Children and Families and the Department of Disabilities, Aging, and Independent Living shall adopt rules governing the process for obtaining information from the Registries and for disseminating and maintaining records of that information under this subsection.

(i) A person convicted of a sex offense that requires registration pursuant to 13 V.S.A. chapter 167, subchapter 3 shall not be eligible for employment under this section.

(j) The board of trustees of a recognized or approved independent school shall request a criminal record check and a check of the Registries pursuant to the provisions of this section prior to offering employment to a headmaster.

(k) The requirements of this section shall not apply to superintendents and headmasters with respect to persons operating or employed by a child care facility, as defined under 33 V.S.A. § 3511, that provides prekindergarten education pursuant to section 829 of this title and that is required to be licensed by the Department for Children and Families pursuant to 33 V.S.A. § 3502. Superintendents and headmasters are not prohibited from conducting a criminal record check as a condition of hiring an employee to work in a child care facility that provides prekindergarten education operated by the school.

(l) The requirements of this section shall not apply with respect to a school district’s partners in any program authorized or student placement created by chapter 23, subchapter 2 of this title; provided, however, that superintendents are not prohibited from requiring a fingerprint-supported record check pursuant to district policy with respect to its partners in such programs.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2009, No. 1, § 5, eff. Dec. 31, 2010; 2009, No. 108 (Adj. Sess.), § 3; 2011, No. 31, § 3, eff. May 17, 2011; 2013, No. 92 (Adj. Sess.), § 35, eff. Feb. 14, 2014; 2013, No. 119 (Adj. Sess.), § 13; 2017, No. 49, § 34, eff. May 23, 2017.)

§ 256 Continued validity of criminal record check; maintenance of records

(a)(1) Anyone required to request a criminal record check under this subchapter about a person who previously has undergone a check, regardless of whether the check was for student teaching, licensure, or employment purposes, shall comply with that requirement by acquiring the results of the previous criminal record check unless:

(A) the person refuses to authorize release of the information;

(B) the record no longer exists;

(C) since the record check, there has been a period of one year or more during which the person has not worked for a Vermont school district or a recognized or an approved independent school; or

(D) as otherwise required by this chapter.

(2) Anyone required to request a criminal record check under this subchapter about a person who has previously undergone a check may request a name and date of birth or fingerprint-supported recheck of the criminal record at any time during the course of the record subject’s employment in the capacity for which the original check was required. Rechecking criminal records may be accomplished through a subscription service.

(b) A superintendent or headmaster who receives criminal record or registry information under this subchapter shall maintain the record or information pursuant to the user agreement for maintenance of records. At the end of the time required by the user agreement for maintenance of the information, the superintendent or headmaster shall destroy the information in accordance with the user agreement unless the person authorizes maintenance of the record. If authorized by the person, the superintendent or headmaster shall:

(1) if the information is a notice of no criminal record, securely maintain the information indefinitely; or

(2) if the information is a criminal record or notice of the existence of a criminal record, send it to the Secretary for secure maintenance in a central records repository.

(c) Upon authorization by the person, the Secretary shall release information maintained in the central records repository to a requesting superintendent or, in the case of a requesting headmaster, to the person. The Secretary shall maintain the notice or record in the repository at least until the person ceases working for a Vermont school district or independent school for a period of one year or more or until the person requests that the record be destroyed.

(d) The State Board may adopt rules regarding maintenance of records.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2009, No. 1, § 6, eff. Dec. 31, 2010; 2013, No. 56, § 7, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 36, eff. Feb. 14, 2014.)

§ 257 Fees for fingerprinting; Fingerprint Fee Special Fund

State, county, and municipal law enforcement agencies may charge a fee of up to $35.00 for providing applicants or other individuals with a set of classifiable fingerprints as required by this subchapter. No fee shall be charged to retake fingerprints determined by the Vermont Crime Information Center not to be classifiable. Fees collected by the State of Vermont under this section shall be credited to the Fingerprint Fee Special Fund established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and shall be available to the Department of Public Safety to offset the costs of providing these services.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2021, No. 147 (Adj. Sess.), § 37, eff. May 31, 2022.)

§ 258 Notice; license applications; job applications; employees

(a) Each application for an initial teaching license shall contain a statement that the applicant will be required to undergo a criminal record check, including an FBI fingerprint record check, and that receipt of the license may be dependent upon the results of the check.

(b) Each job application provided by a school district or independent school shall contain a statement that, if the superintendent or headmaster is prepared to recommend the person for a job, the applicant will be required to undergo a criminal record check, including an FBI fingerprint record check, and that employment may be dependent upon the results of the check.

(Added 1997, No. 163 (Adj. Sess.), § 1.)

§ 259 Penalties; remedy

(a) A person who, without authorization, discloses criminal record check information received under this subchapter shall be fined not more than $2,000.00. Each unauthorized disclosure shall constitute a separate violation.

(b) A person who suffers damages as a result of willful unauthorized disclosure of criminal record check information received under this subchapter may recover those damages together with reasonable attorney’s fees in a civil action.

(c) In addition to any other penalties described in this section, the Secretary may initiate a review of the professional licensure of any person who willfully discloses criminal record check information received under this subchapter.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2013, No. 92 (Adj. Sess.), § 37, eff. Feb. 14, 2014.)

§ 260 School board policies

Each school board shall adopt a policy on supervision of volunteers and work study students. Policies shall require that superintendents, headmasters of recognized or approved independent schools, and their contractors check the names and birth dates of any work study students with the Vermont Internet Sex Offender Registry prior to allowing work study students unsupervised contact with schoolchildren. A person who is on the Registry shall not be eligible to be a work study student.

(Added 1997, No. 163 (Adj. Sess.), § 1; amended 2009, No. 1, § 7b, eff. March 4, 2009; 2013, No. 92 (Adj. Sess.), § 38, eff. Feb. 14, 2014.)

Chapter 7 Supervisory Unions

Subchapter 1 Generally

§ 261 Organization and adjustment of supervisory unions

(a) The State Board shall review on its own initiative or when requested as per subsection (b) of this section and may regroup the supervisory unions of the State or create new supervisory unions in such manner as to afford increased efficiency or greater convenience and economy and to facilitate prekindergarten through grade 12 curriculum planning and coordination as changed conditions may seem to require.

(b)(1) Any school district that has so voted at its annual school district meeting, if said meeting has been properly warned regarding such a vote, may request that the State Board adjust the existing boundaries of the supervisory union of which it is a member district.

(2) Any group of school districts that have so voted at their respective annual school district meeting, regardless of whether the districts are members of the same supervisory union, may request that the State Board adjust existing supervisory union boundaries and move one or more nonrequesting districts to a different supervisory union if such adjustment would assist the requesting districts to realign their governance structures into a unified union school district pursuant to chapter 11 of this title.

(3) The State Board shall act on a request made pursuant to this subsection within 75 days of receipt of the request and may regroup the school districts in the area so as to ensure reasonable supervision of all of these public schools.

(c) The State Board may designate any school district, including a unified union district, as a supervisory district if it will provide for the education of all resident students in prekindergarten through grade 12 and is large enough to support the planning and administrative functions of a supervisory union.

(d) Upon application by a supervisory union board, the State Board may waive any requirements of chapter 5 or 7 of this title with respect to the supervisory union board structure, board composition, or board meetings, or the staffing pattern of the supervisory union, if it can be demonstrated that such a waiver will result in efficient and effective operations of the supervisory union; will not result in any disproportionate representation; and is otherwise in the public interest.

(Amended 1987, No. 228 (Adj. Sess.), § 3; 1991, No. 181 (Adj. Sess.), § 3; 2015, No. 46, § 41, eff. June 2, 2015; 2017, No. 49, § 14, eff. May 23, 2017; 2019, No. 131 (Adj. Sess.), § 57.)

§ 261a Duties of supervisory union board

(a) Duties. The board of each supervisory union shall:

(1) Establish a supervisory union-wide curriculum, by either developing the curriculum or assisting the member districts to develop it jointly, and ensure implementation of the curriculum. The curriculum shall meet the requirements adopted by the State Board under subdivision 165(a)(3)(B) of this title.

(2) Assist each school in the supervisory union to follow the curriculum as adopted under the requirements of the State Board pursuant to subdivision 165(a)(3)(B) of this title.

(3) If students residing in the supervisory union receive their education outside the supervisory union, periodically review the compatibility of the supervisory union’s curriculum with those other schools.

(4) In accordance with criteria established by the State Board, establish and implement a plan for receiving and disbursing federal and State funds distributed by the Agency of Education, including funds awarded under P.L. 89-10, the Elementary and Secondary Education Act of 1965 as amended.

(5) Provide professional development programs or arrange for the provision of them, or both, for teachers, administrators, and staff within the supervisory union, which may include programs offered solely to one school or other component of the entire supervisory union to meet the specific needs or interests of that component; a supervisory union has the discretion to provide financial assistance outside the negotiated agreements for teachers’ professional development activities.

(6) Provide special education services on behalf of its member districts and, except as provided in section 43 of this title, compensatory and remedial services, and provide or coordinate the provision of other educational services as directed by the State Board or local boards; provided, however, if a supervisory union determines that services would be provided more efficiently and effectively in whole or in part at the district level, then it may ask the Secretary to grant it a waiver from this provision.

(7) Employ a person or persons qualified to provide financial and student data management services for the supervisory union and the member districts.

(8) Provide the following services for the benefit of member districts in a manner that promotes the efficient use of financial and human resources, which shall be provided pursuant to joint agreements under section 267 of this title whenever feasible; provided, however, if a supervisory union determines that services would be provided more efficiently and effectively in another manner, then it may ask the Secretary to grant it a waiver from this subdivision:

(A) manage a system to procure and distribute goods and operational services;

(B) manage construction projects;

(C) provide financial and student data management services, including grant writing and fundraising as requested;

(D) negotiate with teachers and administrators, pursuant to chapter 57 of this title, and with other school personnel, pursuant to 21 V.S.A. chapter 22, at the supervisory union level, provided that:

(i) contract terms may vary by district; and

(ii) contracts may include terms facilitating arrangements between or among districts to share the services of teachers, administrators, and other school personnel;

(E) provide transportation or arrange for the provision of transportation, or both, in any districts in which it is offered within the supervisory union;

(F) provide human resources management support; and

(G) provide other appropriate services according to joint agreements pursuant to section 267 of this title.

(9) [Repealed.]

(10) Submit to the board of each member school district, on or before January 15 of each year, a summary report of financial operations of the supervisory union for the preceding school year, an estimate of its financial operations for the current school year, and a preliminary budget for the supervisory union for the ensuing school year. This requirement shall not apply to a supervisory district. For each school year, the report shall show the actual or estimated amount expended by the supervisory union for special education-related services, including:

(A) a breakdown of that figure showing the amount paid by each school district within the supervisory union; and

(B) a summary of the services provided by the supervisory union’s use of the expended funds;

(11) On or before June 30 of each year, adopt a budget for the ensuing school year.

(12) Adopt supervisory union-wide truancy policies consistent with the model protocols developed by the Secretary.

(13)-(17) [Repealed.]

(b) Virtual merger. In order to maximize the impact of available funding and resources, and to reduce duplication of educational programs, personnel, and services, whenever legally permissible, supervisory unions are encouraged to reach agreements with other supervisory unions jointly to provide any service or perform any duty under this section pursuant to section 267 of this title, or to form boards of cooperative education services pursuant to chapter 10 of this title. Agreements between supervisory unions are not subject to the waiver requirement of subdivision (a)(8) of this section. Agreements shall include a cost-benefit analysis outlining the projected financial savings or enhanced outcomes, or both, that the parties expect to realize through shared services or programs.

(c) Noncompliance; tax rate increase. After notice to the boards of a supervisory union and its member districts, the opportunity for a period of remediation, and the opportunity for a hearing, if the Secretary determines that a supervisory union or any one of its member districts is failing to comply with any provision of subsection (a) of this section, then the Secretary shall notify the board of the supervisory union and the board of each of its member districts that the education property tax rates for nonhomestead and homestead property shall be increased by five percent in each district within the supervisory union and the household income percentage shall be adjusted accordingly in the next fiscal year for which tax rates will be calculated. The districts’ actual tax rates shall be increased by five percent, and the household income percentage adjusted, in each subsequent fiscal year until the fiscal year following the one in which the Secretary determines that the supervisory union and its districts are in compliance. If the Secretary determines that the failure to comply with the provisions of subsection (a) of this section is solely the result of the actions of the board of one member district, then the tax increase in this subsection (c) shall apply only to the tax rates for that district. Subject to V.R.C.P. 75, the Secretary’s determination shall be final.

(Added 1987, No. 228 (Adj. Sess.), § 5; amended 1989, No. 202 (Adj. Sess.), § 1; 1989, No. 230 (Adj. Sess.), § 25; 1991, No. 181 (Adj. Sess.), §§ 4, 5; 1995, No. 185 (Adj. Sess.), § 83, eff. Jan. 1, 1998; 2001, No. 8, § 3; 2003, No. 36, § 2; 2003, No. 114 (Adj. Sess.), § 2; 2009, No. 44, §§ 2, 47, eff. May 21, 2009; 2009, No. 153 (Adj. Sess.), § 9, eff. June 3, 2010; 2011, No. 129 (Adj. Sess.), § 2, eff. May 11, 2012; 2011, No. 129 (Adj. Sess.), § 18, eff. July 1, 2013; 2013, No. 92 (Adj. Sess.), § 39, eff. Feb. 14, 2014; 2015, No. 46, § 39, eff. July 1, 2016; 2019, No. 131 (Adj. Sess.), § 58; 2023, No. 168 (Adj. Sess.), § 5, eff. July 1, 2024.)

§ 262 Meetings; election of officers

(a) Within 30 days from the date a supervisory union is established by the State Board, the Secretary shall call a meeting of the school directors of the school districts in the supervisory union. The number of directors shall be determined and directors shall be elected according to section 266 of this title. Within 30 days thereafter, the Secretary shall call a meeting, and the board shall elect a chair and other necessary officers to serve until the first regular annual election of officers.

(b) Regular annual elections of officers shall take place not later than 30 days after the latest annual school district election held by a member district in the supervisory union.

(c) The directors of the supervisory union board shall serve for a one-year term. Vacancies on the supervisory union board shall be filled by appointment by the school board of the school district that was represented by the vacating board member. The person so selected shall serve for the duration of the term vacated.

(d) Each supervisory union board shall establish policies and procedures designed to avoid the appearance of board member conflict of interest.

(Amended 1969, No. 298 (Adj. Sess.), § 77; 1989, No. 188 (Adj. Sess.), § 5; 1991, No. 181 (Adj. Sess.), § 6; 2013, No. 92 (Adj. Sess.), § 40, eff. Feb. 14, 2014.)

§ 263 Quorum

A majority of the school districts comprising a supervisory union shall be represented at a supervisory union meeting and a majority of all members of the supervisory union board shall be present in order to constitute a quorum for the transaction of business. A legal vote taken at such meeting shall be binding upon each school district in the supervisory union.

(Amended 1991, No. 181 (Adj. Sess.), § 7.)

§ 264 Majority vote of school directors

(a) Elections and the transaction of all other business at such supervisory union meeting shall be determined by majority vote of all school directors present.

(b) A supervisory union may establish an executive committee consisting of the chair and no fewer than two additional directors. The supervisory union shall enumerate in writing the specific powers and duties delegated to the executive committee, which shall have authority to act on behalf of the supervisory union within its delegated powers.

(Amended 1983, No. 119 (Adj. Sess.), § 1; 1991 (Adj. Sess.), § 8.)

§ 265 Repealed

[Repealed]

1983, No. 119 (Adj. Sess.), § 2.

§ 266 School board having more than three members

For the purpose of holding meetings and transacting the business of a supervisory union, the school board of any district assigned to a supervisory union, and having more than three members, shall elect from such board three members who shall represent and act for it in meetings of the supervisory union to which it is assigned. But the school board of any district that employs no teacher shall have only one vote in said supervisory union meeting.

§ 267 Joint agreements among supervisory unions

(a) Supervisory unions, or administrative units not within a supervisory union, in order to provide services cooperatively, may at any annual or special meeting of the supervisory unions, by a majority vote of the directors present and eligible to vote, enter into a joint agreement to provide joint programs, services, facilities, and professional and other staff that are necessary to carry out the desired programs and services.

(b) The supervisory union may provide any authorized or required services by contract with any person, partnership, corporation, or school district within or outside the supervisory union or with other supervisory unions. The supervisory union may also provide such services to any independent school in the supervisory union area on such terms as the supervisory union board deems proper. Contracts shall be approved by the board and signed by the chair or the chair’s designee. A contract may be for a term not to exceed four years renewable for successive four-year periods.

(c) The expense of carrying on these shared programs, services, and facilities shall be allocated according to a plan mutually agreed upon by the participating supervisory unions and the Secretary of Education, including agreement on revision and adequate auditing procedures to allocate costs.

(d) Facilities constructed to house such shared programs and services when constructed with funds from the State School Building Aid Bond Account and attached to an existing building become a part of a new construction program. The school district within which the special facilities are located shall own the facilities subject to the mutual agreement on reversion.

(e) A central treasury may be established among the participating unions. Such central treasury will receive and disburse funds of participating supervisory unions. Funds shall be disbursed only on orders signed by at least one authorized member from each of the participating supervisory unions. The participating supervisory unions may jointly own personal property under their contract.

(Added 1967, No. 70; amended 1969, No. 298 (Adj. Sess.), § 78; 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 41, eff. Feb. 14, 2014; 2021, No. 20, § 56.)

Subchapter 2 Supervisory Union Expenses

§ 301 Apportionment of expenses

Unless otherwise agreed upon, each school district shall pay a proportionate share of the salary and expenses of the superintendent and the expenses of the supervisory union based on the number of enrolled students in each member school district. “Enrolled students” shall be defined by the State Board by rule, including the treatment of tuition students, special education students, students enrolled in career technical centers, and other particular circumstances.

(Amended 1961, No. 123; 1987, No. 228 (Adj. Sess.), § 17, eff. July 1, 1989; 1991, No. 181 (Adj. Sess.), § 11; 1991, No. 204 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 43, eff. Feb. 14, 2014.)

§ 302 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§ 303 Repealed

[Repealed]

1991, No. 181 (Adj. Sess.), § 12.

§ 304 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

Subchapter 3 Supervisory Union Treasury; Treasurer; Audits

§ 321 Treasury; uses

A supervisory union shall have a treasury for the purpose of transacting the financial affairs of the supervisory union and any joint operations among or within supervisory unions authorized under section 267 of this title.

(Added 1966, No. 59 (Sp. Sess.), § 1(a); amended 1987, No. 228 (Adj. Sess.), § 9.)

§ 322 Treasurer; salary; expenses; duties

(a) A supervisory union board shall elect a supervisory union treasurer at least annually, fix the salary and expenses, and determine the amount of a bond for him or her.

(b) Nothing shall preclude a supervisory union treasurer from also being a treasurer or deputy treasurer for any school district within the supervisory union if so voted by the electors for the school treasurer. Before beginning duty, a deputy treasurer shall give a bond with corporate surety conditioned for the faithful performance of duties in the same amount and for the benefit of the same obligee as the bond required of the school treasurer.

(c) It shall be the duty of the supervisory union treasurer to sign all checks and drafts, and invest in a prudent manner all funds in the supervisory union treasury as directed by the supervisory union board. Upon request by the supervisory union board, the supervisory union treasurer shall prepare a balance sheet. The supervisory union treasurer shall reconcile monthly accounts with the supervisory union bookkeeper.

(Added 1966, No. 59 (Sp. Sess.), § 1(b); amended 1967, No. 155, § 1, eff. April 15, 1967; 1987, No. 228 (Adj. Sess.), § 10; 2003, No. 107 (Adj. Sess.), § 3.)

§ 323 Audit by public accountant

Annually, the supervisory union board shall employ one or more public accountants to audit the financial statements of the supervisory union and its member districts. The audits shall be conducted in accordance with generally accepted government auditing standards, including the issuance of a report of internal controls over financial reporting to be provided to recipients of the financial statements. Any annual report of the supervisory union to member districts shall include notice that the audits have been performed and the time and place where the full report of the public accountant will be available for inspection and for copying at cost.

(Added 1966, No. 59 (Sp. Sess.), § 1(c); amended 1987, No. 15, § 2; 2009, No. 44, § 3, eff. May 21, 2009; 2011, No. 129 (Adj. Sess.), § 19, eff. July 1, 2013.)

§ 324 Term of office; vacancy

The term of office of a supervisory union treasurer shall be for one year from July 1 through June 30. If the office becomes vacant, the voting members of the supervisory union board shall elect a new supervisory union treasurer to take office on election for the unexpired term.

(Added 1966, No. 59 (Sp. Sess.), § 1(d); amended 2013, No. 92 (Adj. Sess.), § 45, eff. Feb. 14, 2014.)

§ 325 Removal from office

A supervisory union treasurer may be removed from office for cause by a majority vote of the members of the supervisory union board present and eligible to vote at a meeting called for that purpose.

(Added 1966, No. 59 (Sp. Sess.), § 1(e); amended 2013, No. 92 (Adj. Sess.), § 46, eff. Feb. 14, 2014.)

Chapter 9 School Districts

Subchapter 1 Town School Districts

§§ 361-364 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§§ 381-390 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§§ 411-415 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 1A Government of School Districts

§ 421 Town school districts

(a) A town shall constitute a school district, except that when a town contains an incorporated school district, the town school district shall consist of that part of the town not embraced within the incorporated school district.

(b) It is the policy of the State to support two or more school districts within a supervisory union in establishing a unified union district in accordance with section 722 of this title, if such unified union district would then be large enough to qualify for designation by the State Board as a supervisory district.

(Added 1969, No. 298 (Adj. Sess.), § 41; amended 1987, No. 228 (Adj. Sess.), § 13.)

§ 422 Meetings

(a) The annual town meeting shall be the annual town school district meeting. However, at any annual or special school district meeting, the electorate may authorize the annual school district meeting to be held on another date so long as the meeting is held after February 1 and before June 15.

(b) A warning to change the date for the annual school district meeting shall contain an article in substantially the following form: “Shall the town school district of .................... hold its annual meeting on .................... ?”

(c) Town school district meetings shall be warned by the school board and shall contain appropriate articles notifying the electorate of the election of its officers and the business to be transacted.

(d) A town consisting of one town school district may transact at any regular or special town meeting any and all business lawful to be done at any lawfully warned regular or special town school district meeting.

(Added 1969, No. 298 (Adj. Sess.), § 42; amended 1975, No. 48, § 16, eff. April 15, 1975; 1977, No. 128 (Adj. Sess.), § 1.)

§ 423 Directors, number, election; term

(a) Each town school district shall have a school board consisting of three directors, one of whom shall be elected by ballot at each annual meeting of the town school district for a term of three years, beginning the day of election or until a successor is elected and qualified, unless a town school district is a member of a unified union district.

(b) The electorate may vote at an annual or special town school district meeting to elect not more than two additional directors for terms of either one or two years. When the terms are to be for two years, the warning for the meeting shall so specify. If two additional directors are elected, they shall have terms of the same length, but if the terms are to be for two years, when the additional directors are first elected, one shall be elected for one year and the other director for two years. Terms of these additional directors shall end on annual meeting days. If the additional directors are elected at a special meeting, the term of those elected for one year shall expire on the next annual meeting day and those elected for two years shall expire on the second annual meeting day following their election.

(c) The electorate shall continue to elect additional school directors until it votes at a meeting duly warned for the purpose to rescind its previous action under subsection (b) of this section; but the additional directors then in office shall continue in office until the end of the term to which they were elected.

(d) A town school district that holds its annual meeting on a day other than annual town meeting day may vote to elect its officers and its representative directors to union school districts on town meeting day. Their terms of office shall commence on the annual school district meeting day unless the district votes to have the terms of office commence on town meeting day.

(Added 1969, No. 298 (Adj. Sess.), § 43; amended 1983, No. 154 (Adj. Sess.), eff. April 13, 1984.)

§ 424 Vacancies

(a) Except as otherwise provided for a school district operating under a charter, within 30 days of the creation of the vacancy, the school board shall, by majority vote of those present and voting, appoint a qualified person to fill a vacancy in the town school board or a vacancy in the position of town school district treasurer in towns in which the town school district treasurer is elected separately from the town treasurer until an election at a special or annual meeting is held. A record thereof shall be made in the office of the town clerk.

(b) If there are vacancies in a majority of the members of the town school board at the same time, the vacancies shall be filled by a special school district meeting called for that purpose. The remaining board member or members are authorized to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies is filled.

(c) If there are no town school board members in office, the Secretary of State shall call a special election to fill any vacancies and for that interim shall appoint and authorize the town school district clerk or other qualified person to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies is filled.

(Added 1969, No. 298 (Adj. Sess.), § 44; amended 1975, No. 171 (Adj. Sess.), § 1; 2005, No. 32, § 1; 2007, No. 150 (Adj. Sess.), § 1.)

§ 425 Other town school district officers

Unless otherwise voted, the town clerk shall by virtue of the office perform the same duties for the town school district in addition to other duties assigned by this title.

(Added 1969, No. 298 (Adj. Sess.), § 45; amended 1979, No. 23, § 2; 2011, No. 129 (Adj. Sess.), § 20, eff. July 1, 2013.)

§ 426 Duties of the town school district treasurer

(a) The town treasurer shall be treasurer of the town school district unless, by vote of the town school district, a town school district treasurer is elected. He or she shall keep in a separate bank account all the money appropriated or given for the use of the school district. Within 20 days after the date the school taxes become due and payable or within such other period of time as may be agreed upon in writing by both the selectboard and the board of school directors, he or she shall deposit in the school account payments of the school tax levy received. However, if notification of the amount to be transferred by the Secretary of Education to the school district has not been received within 20 days of the date taxes are due and payable, the transfer shall be effected within 20 days of notification by the Secretary.

(b) Within 120 days after the date on which taxes become delinquent, but in no event later than the end of the school year, the treasurer shall deposit the balance of the sum of the gross school tax levy in the school account.

(c) The treasurer shall pay out of such money orders drawn by or upon the authority of the board of school directors. If he or she does not pay any such order on demand, the holder thereof may recover the amount from the town school district with interest from the time of such demand. Monies so received by the town school district may be invested and reinvested by the treasurer with the approval of the board of school directors.

(d) The town school district treasurer shall keep financial records of cash receipts and disbursements and shall make those records available to the board of school directors or the supervisory union board when requested to do so.

(Added 1969, No. 298 (Adj. Sess.), § 46; amended 1979, No. 23, § 1; 1981, No. 239 (Adj. Sess.), § 4; 1987, No. 127 (Adj. Sess.); 1987, No. 228 (Adj. Sess.), § 11; 1989, No. 4; 1991, No. 103, § 3; 2005, No. 54, § 2; 2013, No. 92 (Adj. Sess.), § 47, eff. Feb. 14, 2014.)

§ 427 Grand list

The grand list of a town or incorporated school district shall consist of one percent of the listed value of the real and personal estate taxable in the town or incorporated school district.

(Added 1969, No. 298 (Adj. Sess.), § 47; amended 1971, No. 261 (Adj. Sess.), § 1 eff. March 14, 1972; 1993, No. 148 (Adj. Sess.), § 1, eff. May 16, 1994; 2005, No. 182 (Adj. Sess.), § 1; 2019, No. 131 (Adj. Sess.), § 59.)

§ 428 Budget to be voted

(a) At each annual town school district meeting, the electorate shall vote such sums of money as it deems necessary for the support of schools. If such sums are not approved or acted upon at the annual meeting, the electorate shall vote such questions at a duly warned special school district meeting. A district may vote money necessary for the support of its schools to the end of the full school year next ensuing.

(b) If the electorate of a school district votes for its budget by Australian ballot, it shall do so using ballot language jointly developed by the Secretary of Education and the Secretary of State and adopted by the State Board, by rule.

(Added 1969, No. 298 (Adj. Sess.), § 48; amended 1985, No. 196 (Adj. Sess.), § 21; 1997, No. 60, § 26, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), §§ 1, 83, eff. March 11, 1998, § 71, eff. Jan. 1, 1999; 1999, No. 1, § 60c, eff. March 31, 1999; 1999, No. 152 (Adj. Sess.), § 166b; 2003, No. 36, § 3; 2003, No. 68, § 1; 2013, No. 92 (Adj. Sess.), § 48, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 60.)

§ 429 Loans

Notwithstanding subsection 4029(b) of this title, a school board may draw orders for loans without interest to the town’s general fund, and the town selectboard may draw orders for loans without interest to the school district fund, the loans to be secured by a note signed by both the selectboard and the school board that stipulates mutually agreeable terms and conditions. A note shall be payable not more than 90 days after its issuance and shall be payable on demand anytime within the 90-day term. The school board shall report all loans to the Agency pursuant to subsection 4029(f) of this title. For purposes of this section, “town” and “selectboard” shall have the same meaning as they have in 1 V.S.A. § 139.

(Added 1969, No. 298 (Adj. Sess.), § 49; amended 2011, No. 129 (Adj. Sess.), § 3, eff. May 11, 2012.)

§ 430 [Deleted.]
§ 431 Repealed

[Repealed]

1997, No. 71 (Adj. Sess.), § 106(a), eff. March 11, 1998.

Subchapter 2 Incorporated School Districts

§ 471 Application of other laws

(a) The provisions of this title relating to the administration and maintenance of public schools; to school meetings and voting; to grand lists; to the raising and expending of school monies; to monies apportioned by the State Board; to sharing in other State aid; to the election, appointment, powers, duties, and liabilities of school officers; to elementary and higher instruction; to transportation, board, and attendance of students; to truancy and truant officers; to furnishing of textbooks and appliances; and to all other matters pertaining to schools in a town district, unless otherwise provided, and if not inconsistent with the rights granted by their charters, shall apply to schools maintained, similar school officers, and all matters pertaining to schools in incorporated school districts.

(b) An incorporated school district, if it is so voted at an annual or special meeting duly warned for that purpose, may elect to be governed by any one or more provisions of this title in lieu of any inconsistent provisions of special legislation relating to such district. Provisions of this title adopted by a district shall continue to apply unless the vote is rescinded at an annual or special meeting duly warned for that purpose.

(Amended 2013, No. 92 (Adj. Sess.), § 49, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 61.)

§ 472 Meetings; warnings

(a) A district may, if it so votes at its annual meeting on the first Tuesday in March, fix a different date for holding its annual meetings, provided the date is not earlier than March 15 nor later than June 30. A notice of the proposed change shall be inserted in the warning of the annual meeting upon the written request of five percent of the voters of the district. Special meetings shall be warned on the application of five percent of the voters of the district.

(b) Meetings shall be warned by the clerk or, in case of his or her inability to act, by the prudential committee, by posting a notice specifying the time, place, and business of the meeting in two public places in the district at least seven days before the date of the meeting, and warnings shall be recorded before being posted.

(c) When a person whose duty it is to warn a school meeting neglects to do so for ten days, after application made as provided in this section, he or she shall forfeit to the district $20.00 for each ten days’ neglect, to be recovered in an action on this statute.

(Amended 1975, No. 161 (Adj. Sess.); 2013, No. 92 (Adj. Sess.), § 50, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 62.)

§ 473 Eligibility of voters

The moderator, clerk, and members of the prudential committee shall decide all questions as to the eligibility of a person to vote in a school meeting.

§ 474 Records

The clerk shall keep a record of the votes and proceedings of the school district meetings and give certified copies thereof when required. A clerk who neglects to perform this duty shall forfeit $20.00 to the district, to be recovered in an action on this statute.

§ 475 Statistical information

Annually, on or before August 15, the prudential committee shall return to the Secretary answers to the statistical inquiries that he or she may address to them.

(Amended 1975, No. 48, § 4, eff. April 15, 1975; 2013, No. 92 (Adj. Sess.), § 51, eff. Feb. 14, 2014.)

§ 476 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§ 477 Merger of town and incorporated school districts

(a) An incorporated school district, by a majority vote of the legal voters present and voting at any meeting legally warned, may surrender its charter as a corporation for the maintenance of public schools or such part of its charter as pertains to the maintenance of public schools. Such surrender shall take effect not later than July 1 following the vote so taken, and such school corporation shall cease to exist, and it shall become thereby a part of the town school district. In the event of any such merger notwithstanding the provisions of section 423 of this title, the directors of the incorporated school district holding office at the time of the merger shall become members of the board of school directors of the town school district and shall continue in that office until the expiration of the terms for which they were elected by the incorporated school district.

(b) By a majority vote of the legal voters present and voting at any meeting legally warned, a town district may become a part of an incorporated district, provided the incorporated district, at a meeting legally warned, votes to accept such merger. Such merger shall take effect July 1 following the vote so taken. When such a merger has occurred, the incorporated district shall be considered a town district in all respects pertaining to the maintenance and administration of its public schools.

(c) In case of a union of an incorporated district and a town district under either subsection (a) or (b) of this section, each district shall settle its own business affairs and pay all its indebtedness, except for repairs and new buildings, shall deposit its records with the town clerk, and shall no longer exist except for the settlement of its own pecuniary affairs. In effecting such settlement, a district may remain in existence for not more than five years for the purpose only of voting, assessing, and collecting a special tax annually to pay such indebtedness.

(Amended 1964, No. 7 (Sp. Sess.), eff. March 4, 1964.)

§ 478 Prudential committee; vacancies

Unless the incorporated district has a provision in its charter to the contrary, when a vacancy occurs on a prudential committee, the remaining members shall appoint a person to fill the vacancy until the next annual or special meeting. The members shall choose the new member by majority vote of those present and voting.

(Added 2003, No. 112 (Adj. Sess.), § 1.)

§ 491 Election; notice to clerk

At each annual meeting, an incorporated school district shall elect from among the legal voters of such district a moderator, collector, and treasurer and may elect a clerk. All school officers shall enter upon their duties on July 1, following their election or appointment. If a clerk is elected or appointed, then the clerk shall notify the town clerk within ten days of the election or appointment.

(Amended 2011, No. 129 (Adj. Sess.), § 21, eff. July 1, 2013.)

§ 492 Powers, duties, and liabilities; bonds

(a) The powers, duties, and liabilities of the collector, treasurer, prudential committee, and clerk shall be like those of a town collector, treasurer, board of school directors, and the school board clerk, respectively.

(b) Before entering upon their duties, the collector and treasurer shall give a bond to the district conditioned for the faithful performance of their duties, in such sum as may be required. In lieu of taking a personal bond from a collector or treasurer, or both, a school district may choose to provide suitable crime insurance covering the collector or treasurer, or both. If a school district has not provided suitable crime insurance in lieu of a bond and a collector or treasurer for ten days neglects to give a bond as required, that office shall be vacant.

(Amended 2011, No. 129 (Adj. Sess.), § 22, eff. July 1, 2013; 2013, No. 92 (Adj. Sess.), § 52, eff. Feb. 14, 2014; 2021, No. 166 (Adj. Sess.), § 11, eff. June 1, 2022.)

§ 493 Moderator

The moderator shall preside at such district meetings; and, in his or her absence, a moderator pro tempore shall be chosen to preside.

(Amended 2013, No. 92 (Adj. Sess.), § 53, eff. Feb. 14, 2014.)

§ 494 Collector of taxes

The district may elect the collector of town taxes to be collector of taxes for the district, although he or she is not an inhabitant of that district. When a collector accepts the office, he or she shall do so in writing, and the acceptance shall be recorded by the clerk.

(Amended 2013, No. 92 (Adj. Sess.), § 54, eff. Feb. 14, 2014.)

§ 495 Vacancies

(a) When a vacancy occurs in the office of a district officer, the district shall fill the vacancy at a special meeting.

(b) A vacancy occurring in the office of clerk of an incorporated school district caused by death, resignation, or otherwise shall be filled by the prudential committee within ten days after such vacancy occurs.

§ 496 Books and papers to be turned over to successor

When a district office becomes vacant by expiration of the term of office of the incumbent or otherwise, and a successor is elected or appointed, the successor shall, on demand, be entitled to receive the books and papers of the office from the last incumbent or anyone having the books and papers in his or her possession. A person having books or papers in his or her possession who refuses for ten days, after demand, to surrender them to the successor shall be fined $10.00.

(Amended 2013, No. 92 (Adj. Sess.), § 55, eff. Feb. 14, 2014.)

§ 511 Budget

(a) At a meeting legally warned for that purpose, the electorate within an incorporated school district shall vote such sums of money as it deems necessary for the support of schools. If the sums are not approved or acted upon at the annual meeting, the electorate shall vote the questions at a duly warned special school district meeting. A district may vote money necessary for the support of schools to the end of the full school year next ensuing.

(b) If the electorate of an incorporated school district votes for its budget by Australian ballot, it shall do so using ballot language jointly developed by the Secretary of Education and Secretary of State and adopted by the State Board by rule.

(Amended 1981, No. 133 (Adj. Sess.), § 1, eff. April 2, 1982; 1997, No. 60, § 27, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), §§ 2, 84, eff. March 11, 1998, § 72, eff. Jan. 1, 1999; 1999, No. 1, § 60d, eff. March 31, 1999; 1999, No. 152 (Adj. Sess.), § 166b; 2003, No. 36, § 4; 2003, No. 68, § 2; 2013, No. 92 (Adj. Sess.), § 56, eff. Feb. 14, 2014.)

§ 512 Payment of monies collected to treasurer

On the written request of one or more members of the prudential committee, a school district tax collector shall pay to the treasurer monies belonging to the district that have been collected to the date of the request and submit his or her tax book and list to the treasurer for inspection and computation. A tax collector who neglects to do so within ten days after receiving the request shall forfeit to the school district $100.00, to be recovered in an action on this statute, and the office of tax collector shall be vacant.

(Amended 2013, No. 92 (Adj. Sess.), § 57, eff. Feb. 14, 2014.)

§ 513 Repealed

[Repealed]

2007, No. 66, § 15.

§ 514 Abatement

The officers of the district, except the tax collector, shall be a board for the abatement of district taxes, and it shall have the same power that the board for the abatement of town taxes has in the abatement of municipal taxes. On request of the tax collector, the prudential committee shall call a meeting of the board in the month of February in each year, by posting a notice in three public places in the district at least five days before the meeting.

(Amended 2013, No. 92 (Adj. Sess.), § 58, eff. Feb. 14, 2014.)

§ 515 Payment of a deficit

When a demand is made upon a district for the payment of an execution issued against it and the district has no available funds to pay the same, the prudential committee shall borrow funds sufficient to pay such execution and related charges and shall add the debt to the following year’s adopted budget pursuant to 24 V.S.A. § 1523(b).

(Amended 1997, No. 71 (Adj. Sess.), § 108, eff. March 11, 1998.)

Subchapter 3 Demonstration School Districts

§§ 541-549 Repealed

[Repealed]

1973, No. 23, § 1, eff. March 1, 1973.

Subchapter 4 Other Provisions

§ 551 Application of laws to school districts

Unless otherwise specifically provided in statute with respect to a class of school district or in a municipal charter, the laws of this title, the laws pertaining to municipal corporations, and the rules of the State Board shall apply to all school districts.

(Added 1969, No. 298 (Adj. Sess.), § 28; amended 2013, No. 92 (Adj. Sess.), § 59, eff. Feb. 14, 2014.)

§ 552 Validation of school districts and bonds voted for school construction

No action shall be brought directly or indirectly attacking, questioning, or in any manner contesting the legality of the formation, or the existence as a body corporate and politic of any union school district created pursuant to chapter 11 of this title after six months from the date of recording in the office of the Secretary of State the certificate of the Secretary of Education designating the district as required by section 706g of this title; nor shall any action be brought directly or indirectly attacking, questioning, or in any manner contesting the legality or validity of bonds, issued or unissued, voted by a school district after six months from the date upon which voters in the school district met pursuant to warning and voted affirmatively to issue bonds to defray the cost of school improvements. This section shall be liberally construed to effect the legislative purpose to validate and make certain the legal existence of all school districts in this state and the validity of bonds issued by school districts, and to bar every right to question the existence of a school district or the validity of a bond voted by it, in any manner, and to bar every remedy therefor notwithstanding any defects or irregularities, jurisdictional or otherwise, after the expiration of the six-month period.

(Added 1969, No. 298 (Adj. Sess.), § 29; amended 1971, No. 46, eff. April 7, 1971; 2013, No. 92 (Adj. Sess.), § 60, eff. Feb. 14, 2014.)

§ 553 Qualification of voters at school district meetings

A person is qualified to vote at a school district meeting if by meeting day he or she would be eligible to vote at a town meeting held on that day.

(Added 1969, No. 298 (Adj. Sess.), § 30; amended 2013, No. 92 (Adj. Sess.), § 61, eff. Feb. 14, 2014.)

§ 554 School board meetings; majority vote, quorum, Robert’s Rules, public participation

(a) A majority of the members of the board shall constitute a quorum. Notwithstanding 1 V.S.A. § 172, the concurrence of a majority of members present at a school board meeting shall be necessary and sufficient for board action.

(b) A school board meeting shall be conducted in accordance with the Vermont Open Meeting Law. Robert’s Rules of Order shall govern the conduct of school board meetings. A school board shall afford a reasonable opportunity to any person in the school district to appear and express views in regard to any matter considered by the school board and, if requested to do so, shall give reasons for its action in writing.

(Added 1969, No. 298 (Adj. Sess.), § 31; amended 1975, No. 48, § 5, eff. April 15, 1975; 1991, No. 181 (Adj. Sess.), § 13.)

§ 555 No liability for unauthorized or deficit spending

(a) It is the intent of the General Assembly that school boards should spend within the amount authorized by the electorate pursuant to this title and should not incur a deficit. However, the General Assembly recognizes that in the course of a school district budget year it may be necessary for expenditures to exceed revenues received or the amount authorized by the electorate.

(b) A school board member shall not be liable under any law, including any criminal law, on the sole basis that the board has spent more than authorized under this title or that a deficit, as defined in 24 V.S.A. § 1523, has occurred.

(Added 1969, No. 298 (Adj. Sess.), § 32; amended 1995, No. 155 (Adj. Sess.), § 1; 2001, No. 8, § 4; 2013, No. 92 (Adj. Sess.), § 62, eff. Feb. 14, 2014.)

§ 556 Liability for damage to textbook or learning materials

The parent or guardian of a student shall be liable to a school district for damage occasioned by loss, destruction, injury, or detention by the student of a textbook or other learning materials, to be recovered in an action on this statute in the name of the district.

(Added 1969, No. 298 (Adj. Sess.), § 33; amended 2013, No. 92 (Adj. Sess.), § 63, eff. Feb. 14, 2014.)

§ 557 Gratuity or compensation prohibited

(a) A member of the State Board, a supervisory union board, or a school board, the Secretary, and any person employed by one of the boards or by the Agency shall not solicit or receive directly or indirectly any gift or compensation for recommending or voting on any finding, ruling, decision, or report, or voting to procure any service, thing, or supply purchased with public funds. A violation of this provision is subject to 13 V.S.A. § 1106(b).

(b) A member of the State Board, a supervisory union board or a school board, and any person employed by one of the boards shall not receive directly or indirectly anything of value, by contract or otherwise, from the school district or supervisory union he or she serves unless it is received:

(1) as a result of a contract accepted after a public bid in accordance with law;

(2) in public recognition of service or achievement;

(3) as regular salary or expenses allowed by law for official duties performed as a member of the board; or

(4) for employment according to the provisions of section 558 of this title.

(c) No school board member or supervisory union board member shall vote on any contract or purchase in which he or she has a direct or indirect interest.

(d) A person who violates subsection (b) or (c) of this section shall be fined not more than $1,000.00 and shall be incapable of holding elective or appointed office in this State for two years next ensuing.

(Added 1969, No. 298 (Adj. Sess.), § 34; amended 1989, No. 188 (Adj. Sess.), § 1; 2013, No. 92 (Adj. Sess.), § 64, eff. Feb. 14, 2014.)

§ 558 Eligibility for election to a school board; employment of school board members

(a) A legal voter in a school district shall be eligible for election to a school board; however, a member of a school board may not be regularly employed by the school district or by a school district within the same supervisory union, or by the same supervisory union during the board member’s term of office.

(b) The Secretary may waive the provisions of this section for employment of a specific individual as a substitute teacher, coach, or supervisor of extracurricular activities for a period not to exceed one year, which may be renewed if the school district or supervisory union is unable to hire another qualified person through no fault of its own.

(Added 1969, No. 298 (Adj. Sess.), § 35; amended 1989, No. 188 (Adj. Sess.), § 2; 2013, No. 92 (Adj. Sess.), § 65, eff. Feb. 14, 2014.)

§ 559 Public bids

(a) Cost threshold. When the cost exceeds $40,000.00, a school board or supervisory union board shall publicly advertise or invite three or more bids from persons deemed capable of providing items or services if costs are in excess of $40,000.00 for any of the following:

(1) the construction, purchase, lease, or improvement of any school building;

(2) the purchase or lease of any item or items required for supply, equipment, maintenance, repair, or transportation of students; or

(3) a contract for transportation, maintenance, or repair services.

(b) High-cost construction contracts. When a school construction contract exceeds $2,000,000.00:

(1) The State Board shall establish, in consultation with the Commissioner of Buildings and General Services and with other knowledgeable sources, general rules for the prequalification of bidders on such a contract. The Department of Buildings and General Services, upon notice by the Secretary, shall provide to school boards undergoing construction projects suggestions and recommendations on bidders qualified to provide construction services.

(2) At least 60 days prior to the proposed bid opening on any construction contract to be awarded by a school board that exceeds $2,000,000.00, the school board shall publicly advertise for contractors interested in bidding on the project. The advertisement shall indicate that the school board has established prequalification criteria that a contractor must meet and shall invite any interested contractor to apply to the school board for prequalification. All interested contractors shall submit their qualifications to the school board, which shall determine a list of eligible prospective bidders based on the previously established criteria. At least 30 days prior to the proposed bid opening, the school board shall give written notice of the board’s determination to each contractor that submitted qualifications. The school board shall consider all bids submitted by prequalified bidders meeting the deadline.

(c) Contract award.

(1) A contract for any such item or service to be obtained pursuant to subsection (a) of this section shall be selected from among the three or fewer lowest responsible bids conforming to specifications, with consideration being given to quantities involved, time required for delivery, purpose for which required, competency and responsibility of bidder, and the bidder’s ability to render satisfactory service. A board shall have the right to reject any or all bids.

(2) A contract for any property, construction, good, or service to be obtained pursuant to subsection (b) of this section shall be awarded to the lowest responsible bid conforming to specifications. However, when considering the base contract amount and without considering cost overruns, if the two lowest responsible bids are within one percent of each other, the board may award the contract to either bidder. A board shall have the right to reject any bid found not to be responsible or conforming to specifications or to reject all bids.

(d) Construction management. The school board may contract for the service of construction management to assist in a school construction project. The State Board, in consultation with the Commissioner of Buildings and General Services and other knowledgeable sources, shall adopt rules defining the term “construction management” and specifying the nature of bidding requirements under construction management services in order to assist school boards to comply with the public bidding requirements of this section.

(e) Application of this section. Any contract entered into or purchase made in violation of the provisions of this section shall be void; provided, however, that:

(1) The provisions of this section shall not apply to contracts for the purchase of books or other materials of instruction.

(2) A school board may name in the specifications and invitations for bids under this section the particular make, kind, or brand of article or articles to be purchased or contracted.

(3) Nothing in this section shall apply to emergency repairs.

(4) The provisions of this section shall not apply to contracts for the purchase of food made from a nonprofit school food services account.

(5) Nothing in this section shall prevent school districts or supervisory unions from entering into agreements with other school districts or supervisory unions to conduct joint bidding procedures otherwise consistent with this section.

(6) Nothing in this section shall require a school board to invite or advertise for bids if it elects to purchase goods, materials, or supplies through the Commissioner of Buildings and General Services, pursuant to 29 V.S.A. chapter 49.

(7) Nothing in this section shall require a school board or supervisory union board to invite or advertise for bids if it is renewing a contract entered into pursuant to subsection (a) of this section, provided that annual costs will not increase more than the most recent New England Economic Project Cumulative Price Index, as of November 15, for State and local government purchases of goods and services, the total amount of the contract does not exceed an increase of 30 percent more than the total amount of the original contract, and the contract for the renewal period allows termination by the board following an annual review of performance.

(f) Waivers. The State Board shall by rule adopt standards governing the authority of the Secretary to grant individual waivers to the provisions of this section. The rules, at minimum, shall require the school board seeking the waiver to demonstrate to the Secretary that it is unable to comply with the bidding procedure through no fault of its own, and that it has proposed an alternative method of minimizing costs through a fair and public process.

(g) Violations. The State Board may deny State aid for school construction and for debt service on a project that proceeds in violation of this section.

(Added 1969, No. 298 (Adj. Sess.), § 36; amended 1971, No. 232 (Adj. Sess.), § 1, eff. April 5, 1972; 1989, No. 188 (Adj. Sess.), § 3; 1993, No. 233 (Adj. Sess.), § 75, eff. June 21, 1994; 1995, No. 185 (Adj. Sess.), § 86, eff. May 22, 1996; 1999, No. 77 (Adj. Sess.), § 1; 1999, No. 148 (Adj. Sess.), § 76, eff. May 24, 2000; 2003, No. 12, § 1; 2005, No. 54, § 3; 2007, No. 66, § 3; 2013, No. 92 (Adj. Sess.), § 66, eff. Feb. 14, 2014; 2017, No. 63, § 2; 2019, No. 34, § 5; 2019, No. 131 (Adj. Sess.), § 63; 2021, No. 72, § 8, eff. June 8, 2021; 2023, No. 149 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 72, § 4, eff. June 27, 2025.)

§ 560 Condemnation for school purposes

A school board, or the board of trustees of a public school, may acquire land for school purposes by condemnation. Condemnation shall be accomplished by the procedures and be governed by the limitations established in 24 V.S.A. chapter 77, except that the school board, school district officers, or board of trustees, as the case may be, shall exercise the powers and have the responsibilities given the officers of municipalities in 24 V.S.A. chapter 79.

(Added 1969, No. 298 (Adj. Sess.), § 37.)

§ 561 Election of school board members; oath; chair; clerk

(a) School board members shall be sworn before entering upon the duties of their office. At the meeting next following the election of a school board member, the school board shall elect one of its number to serve as the chair and one other of its number to serve as the clerk. The clerk may be paid upon order of the school board. The clerk shall keep a permanent record of the proceedings of the school board. In the clerk’s absence, another member of the school board shall assume the clerk’s duties.

(b) At least annually, the chairs of each school board within a supervisory union, the chair of the supervisory union board, and the superintendent shall jointly participate in at least eight hours of professional training that, at a minimum, addresses:

(1) educational leadership;

(2) the relative roles and responsibilities of the supervisory union board, the school district boards, and the superintendent;

(3) the Vermont Open Meeting Law, 1 V.S.A. §§ 310-314;

(4) Vermont law regarding access to public records, 1 V.S.A. §§ 315-320;

(5) collective bargaining; and

(6) education funding and school finance laws.

(Added 1969, No. 298 (Adj. Sess.), § 38; amended 2007, No. 66, § 4; 2013, No. 56, § 13, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 67, eff. Feb. 14, 2014.)

§ 562 Powers of electorate

At a school district meeting, the electorate:

(1) Shall conduct meetings in accordance with Robert’s Rules of Order, unless other rules of order are specifically adopted at a meeting.

(2) Shall elect a moderator at the annual meeting who shall preside at the district meetings, regulate the business thereof, decide questions of order, and make a public declaration of every vote. The moderator may administer oaths to district officers and newly elected school board members. In the moderator’s absence, a moderator pro tempore shall be chosen to preside.

(3) May elect a school district clerk at the annual meeting who shall keep a true record of all proceedings at each district meeting, certify its records, make an attested copy of any records of the district for any person upon request and tender of reasonable fees therefor, if so appointed serve as secretary of the school board, and perform such other duties as may be required by law.

(4) May authorize the school board to retain a public accountant, licensed in this State, to examine the accounts of the treasurer and the school board at the close of each fiscal year and at such other times whenever necessary, and report to the district whether the same are correctly cast and properly vouched.

(5) May vote annual salaries for school board members.

(6) May authorize the payment of actual and necessary expenses of school board members when traveling in the performance of duty.

(7) May authorize the school board to enter into leases of real property for more than three years, to purchase buildings or sites for school purposes, to locate and erect schoolhouses, and to sell, or otherwise dispose of, schoolhouses or sites for same.

(8) Shall authorize at each annual school district meeting an amount of money from all revenue sources to be expended by the board for the support of public schools; and, except for one-time purchase items that the board warns as a separate article, the board shall determine how the authorized funds shall be expended.

(9) May authorize the school board to borrow money not in excess of anticipated revenue for the school year by issuing bonds or notes.

(10) Shall elect school board directors and other officers as are required for each class of school district.

(11) May grant general authority to the school board, at the request of the board, to incur debt at any time within the subsequent five years to finance the cost of school-building energy improvements not to exceed $350,000.00 per building in any three-year period and payable over a maximum term coextensive with the useful life of the financed improvements, but not to exceed ten years, provided that the avoided costs attributable to the financed improvements exceed the annual payment of principal and interest of the indebtedness. No indebtedness shall be incurred under this subdivision unless the entity appointed as an energy efficiency utility under 30 V.S.A. § 209(d)(2), an independent licensed engineer, or an independent licensed architect has certified to the district the cost of the improvements to be financed, the avoided costs attributable to the improvements, and the adequacy of debt service coverage from the avoided costs over the term of the proposed indebtedness.

(Added 1969, No. 298 (Adj. Sess.), § 39; amended 1975, No. 192 (Adj. Sess.), § 3; 1979, No. 23, § 3; 2003, No. 12, § 2; 2005, No. 54, § 4; 2005, No. 182 (Adj. Sess.), § 2; 2011, No. 58, § 32, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 68, eff. Feb. 14, 2014.)

§ 563 Powers of school boards; form of vote

The school board of a school district, in addition to other duties and authority specifically assigned by law:

(1) Shall determine the educational policies of the school district. Board policies shall be of general application to the district and shall be in writing, codified, and made available to the public. Board policies shall be adopted at regular or special school board meetings. A school board shall give public notice of its intent to adopt a board policy, stating the substance of the proposed policy, at least ten days prior to its adoption. A school board may also approve or disapprove rules and regulations proposed by the principal or superintendent for the conduct and management of public schools in the district.

(2) May take any action that is required for the sound administration of the school district. The Secretary, with the advice of the Attorney General, upon application of a school board, shall decide whether any action contemplated or taken by a school board under this subdivision is required for the sound administration of the district and is proper under this subdivision. The Secretary’s decision shall be final.

(3) Shall have the possession, care, control, and management of the property of the school district, subject to the authority vested in the electorate or any school district official.

(4) [Repealed.]

(5) Shall keep the school buildings and grounds in good repair, suitably equipped, insured, and in safe and sanitary condition at all times. The school board shall regulate or prohibit firearms or other dangerous or deadly weapons on school premises. At a minimum, a school board shall adopt and implement a policy at least consistent with section 1166 of this title and 13 V.S.A. § 4004, relating to a student who brings a firearm to or possesses a firearm at school.

(6) Shall have discretion to furnish instruction to students who have completed a secondary education and to administer early educational programs.

(7) May relocate or discontinue use of a schoolhouse or facility, subject to the provisions of sections 821 and 822 of this title.

(8) Shall establish and maintain a system for receipt, deposit, disbursement, accounting, control, and reporting procedures that meets the criteria established by the State Board pursuant to subdivision 164(15) of this title and that ensures that all payments are lawful and in accordance with a budget adopted or amended by the school board. The school board may authorize a subcommittee, the superintendent of schools, or a designated employee of the school board to examine claims against the district for school expenses and draw orders for the payment of those claims. Such orders shall state definitely the purpose for which they are drawn and shall serve as full authority to the treasurer to make such payments. It shall be lawful for a school board to submit to its treasurer a certified copy of those portions of the board minutes, properly signed by the clerk and chair, or a majority of the board, showing to whom and for what purpose each payment is to be made by the treasurer, and such certified copy shall serve as full authority to the treasurer to make the payments as thus approved.

(9) Shall establish with the advice and consent of the Auditor of Accounts and the Secretary a system of accounts for the proper control and reporting of school district finances and for stating the annual financial condition of the school district.

(10) Shall prepare and distribute to the electorate, not less than ten days prior to the district’s annual meeting, a report of the conditions and needs of the district school system, including the superintendent’s, supervisory union treasurer’s, and school district treasurer’s annual report for the previous school year and the balance of any reserve funds established pursuant to 24 V.S.A. § 2804. At a school district’s annual meeting, the electorate may vote to provide notice of availability of the report required by this subdivision to the electorate in lieu of distributing the report. If the electorate of the school district votes to provide notice of availability, it must specify how notice of availability shall be given, and such notice of availability shall be provided to the electorate at least 30 days before the district’s annual or special meeting.

(11)(A) Shall prepare and distribute annually a proposed budget for the next school year according to such major categories as may from time to time be prescribed by the Secretary.

(B) [Repealed.]

[Subdivision (11)(C) effective until contingency met; see also subdivision (11)(C) effective July 1, 2028 if contingency met, set out below.]

(C) At a school district’s annual or special meeting, the electorate may vote to provide notice of availability of the school budget required by this subdivision to the electorate in lieu of distributing the budget. If the electorate of the school district votes to provide notice of availability, it must specify how notice of availability shall be given, and such notice of availability shall be provided to the electorate at least 30 days before the district’s annual meeting. The proposed budget shall be prepared and distributed at least ten days before a sum of money is voted on by the electorate. Any proposed budget shall show the following information in a format prescribed by the Secretary:

(i) all revenues from all sources, and expenses, including as separate items any assessment for a supervisory union of which it is a member and any tuition to be paid to a career technical center; and including the report required in subdivision 242(4)(D) of this title itemizing the component costs of the supervisory union assessment;

(ii) the specific amount of any deficit incurred in the most recently closed fiscal year and how the deficit was or will be remedied;

(iii) the anticipated homestead tax rate and the percentage of household income used to determine income sensitivity in the district as a result of passage of the budget, including those portions of the tax rate attributable to supervisory union assessments; and

(iv) the definition of “education spending,” the number of pupils and number of equalized pupils in the school district, and the district’s education spending per equalized pupil in the proposed budget and in each of the prior three years.

[Subdivision (11)(C) effective July 1, 2028 if contingency met; see also subdivision (11)(C) effective until contingency met, set out above.]

(C) At a school district’s annual or special meeting, the electorate may vote to provide notice of availability of the school budget required by this subdivision to the electorate in lieu of distributing the budget. If the electorate of the school district votes to provide notice of availability, it must specify how notice of availability shall be given, and such notice of availability shall be provided to the electorate at least 30 days before the district’s annual meeting. The proposed budget shall be prepared and distributed at least 10 days before a sum of money is voted on by the electorate. Any proposed budget shall show the following information in a format prescribed by the Secretary:

(i) all revenues from all sources, and expenses, including as separate items any assessment for a supervisory union of which it is a member and any tuition to be paid to a career technical center; and including the report required in subdivision 242(4)(D) of this title itemizing the component costs of the supervisory union assessment;

(ii) the specific amount of any deficit incurred in the most recently closed fiscal year and how the deficit was or will be remedied;

(iii) the anticipated statewide education tax rate, as adjusted for each tax classification pursuant to 32 V.S.A. § 5402;

(iv) the definition of “supplemental district spending,” the long-term membership of the school district, and the district’s per pupil supplemental district spending in the proposed budget and in each of the prior three years; and

(v) the supplemental district spending yield.

[Subdivision (11)(D) effective until contingency met; see also subdivision (11)(D) effective July 1, 2028 if contingency met, set out below.]

(D) The board shall present the budget to the voters by means of a ballot in the following form:

“Article #1 (School Budget):

Shall the voters of the school district approve the school board to expend $ ______ , which is the amount the school board has determined to be necessary for the ensuing fiscal year?

The ______ District estimates that this proposed budget, if approved, will result in per pupil education spending of $______ , which is ______ % higher/lower than per pupil education spending for the current year.”

[Subdivision (11)(D) effective July 1, 2028 if contingency met; see also subdivision (11)(D) effective until contingency met, set out above.]

(D) The board shall present the budget to the voters by means of a ballot in the following form:

“Article #1 (School Budget):

Shall the voters of the school district approve the school board to expend $ ______ , which is the amount the school board has determined to be necessary in excess of the school district’s educational opportunity payment for the ensuing fiscal year?

The ______ District estimates that this proposed budget, if approved, will result in per pupil supplemental district spending of $______ , which is______ % higher/lower than per pupil supplemental district spending for the current year, and a supplemental district spending tax rate of ______ per $100.00 of equalized education property value.”

(12) Shall employ such persons as may be required to carry out the work of the school district pursuant to the provisions of subdivision 242(3) of this title.

(13) [Repealed.]

(14) Shall provide, at the expense of the district, subject to the approval of the superintendent, all text books, learning materials, equipment, and supplies.

(15) Shall exercise the general powers given to a legislative branch of a municipality.

(16) May execute contracts on behalf of the school district, including contracts providing for binding arbitration, by its chair or any person designated whose appointment is recorded in the minutes of the board.

(17), (18) [Repealed.]

(19) Shall allow any high school student who meets the academic requirements of the high school to graduate and receive a diploma in less than four years.

(20) Shall establish policies and procedures designed to avoid the appearance of board member conflict of interest.

(21) Shall have the authority to engage in short-term borrowing to cover the costs of those portions of projects approved by the State Board and that will be reimbursed by the State Board under sections 3447-3456 of this title but which payments will be delayed. However, the board shall borrow under this subdivision only amounts that it would receive if the State Board could fund its obligation and may borrow no earlier than the time it would have received the funds. The State shall not pay for costs of borrowing funds under this subdivision.

(22) May apply for grants and may accept and expend grants or gifts. The board shall include, in its annual report, a description of all grants or gifts accepted during the year and associated expenditures.

(23) May, at the expense of the district, present informational materials to the electorate on any matter to be voted. However, such materials shall be limited to those that are reasonably designed to inform, educate, and explain to the electorate the board’s position on the matter.

(24) Shall adopt a policy that, in accordance with rules adopted by the State Board of Education, will integrate home study students into its schools through enrollment in courses, participation in cocurricular and extracurricular activities, and use of facilities.

(25) Shall, if it is a school board of a school district that maintains a secondary school, upon request, award a high school diploma to any Vermont resident who served in the military in World War II, the Korean War, or during the Vietnam era, was honorably separated from active federal military service, and does not hold a high school diploma. The State Board shall develop and make available an application form for veterans who wish to request a high school diploma.

(26) [Repealed.]

(27) Annually, shall inform each secondary student and the student’s parents or guardians of the right to opt out of the federal requirement that student contact information be provided to military recruiters or institutions of higher education pursuant to 20 U.S.C. § 7908(a). A school board shall enable the secondary student and the student’s parents or guardians to disallow provision of student contact information to either military recruiters or institutions of higher education, while allowing provision of information to the other. For purposes of this subdivision, “secondary student” means a student in grade 9, 10, 11, or 12.

(28) Annually, shall inform students and their parents or guardians of their options for school choice under applicable laws or policy.

(29) Shall assign an employee to annually:

(A) inform parents of students with life-threatening allergies and life-threatening chronic illnesses of applicable provisions of Section 504 of the Rehabilitation Act of 1973 and other applicable federal statutes, State statutes, federal regulations, and State rules;

(B) inform appropriate school staff of their responsibilities; and

(C) provide necessary training to carry out these responsibilities.

(30) May make available school facilities and equipment for specified public purposes if such purposes appear, in the judgment of the board, to be in the best interests of the district and are an efficient, economical, and appropriate use of the facilities and equipment.

(31) Subject to the requirements of section 571 of this title, may enter into contracts with other school boards to provide joint programs, services, facilities, and professional or other staff.

(32) May enter into a contract or contracts with a school offering a distance learning program that is approved by one or more accrediting agencies recognized by the U.S. Department of Education or is approved in Vermont pursuant to subdivision 166(b)(6) of this title.

(Added 1969, No. 298 (Adj. Sess.), § 40; amended 1971, No. 200 (Adj. Sess.); 1975, No. 48, § 6, eff. April 15, 1975; 1977, No. 33, § 1; 1979, No. 5; 1985, No. 71, § 3; 1987, No. 15, § 1; 1987, No. 68, § 5; 1987, No. 228 (Adj. Sess.), § 12; 1989, No. 143 (Adj. Sess.), § 2; 1989, No. 188 (Adj. Sess.), § 4; 1989, No. 202 (Adj. Sess.), § 3; 1991, No. 103, §§ 1, 2; 1991, No. 176 (Adj. Sess.), § 2; 1991, No. 196 (Adj. Sess.), § 2; 1995, No. 35, § 2; 1995, No. 62, § 62, eff. April 26, 1995; 1995, No. 155 (Adj. Sess.), §§ 2, 3; 1995, No. 185 (Adj. Sess.), §§ 7a, 7b, 68, eff. May 22, 1996; 1997, No. 83 (Adj. Sess.), § 8; 1997, No. 119 (Adj. Sess.), § 2, eff. April 27, 1998; 1999, No. 62, § 158b; 1999, No. 113 (Adj. Sess.), § 2; 1999, No. 152 (Adj. Sess.), § 277; 2001, No. 8, § 5; 2001, No. 118 (Adj. Sess.), § 2; 2003, No. 36, §§ 5, 19; 2003, No. 68, § 48, eff. June 18, 2003; 2003, No. 75 (Adj. Sess.), § 1; 2003, No. 114 (Adj. Sess.), § 3; 2003, No. 126 (Adj. Sess.), § 3, eff. July 1, 2005; 2005, No. 54, § 5; 2005, No. 127 (Adj. Sess.), § 2; 2005, No. 158 (Adj. Sess.), § 3; 2005, No. 182 (Adj. Sess.), §§ 3, 25; 2007, No. 23, § 1; 2007, No. 82, § 5; 2009, No. 44, §§ 4, 6, 8, 9, eff. May 21, 2009; 2009, No. 153 (Adj. Sess.), §§ 11, 12, eff. June 3, 2010; 2009, No. 153 (Adj. Sess.), § 21c; 2011, No. 58, § 1, eff. May 31, 2011; 2011, No. 129 (Adj. Sess.), §§ 23, 24, eff. July 1, 2013; 2015, No. 23, § 32; 2015, No. 46, § 33; 2015, No. 48, § 2; 2017, No. 49, § 27, eff. May 23, 2017; 2019, No. 131 (Adj. Sess.), § 64; 2021, No. 20, § 57; 2023, No. 183 (Adj. Sess.), § 9, eff. July 1, 2024; 2025, No. 73, § 41, contingently eff. July 1, 2028.)

§ 563a Prevention, identification, and reporting of child sexual abuse and sexual violence

Each school board of a school district and governing body of an approved or recognized independent school shall ensure that adults employed in the schools within its jurisdiction receive orientation, information, or instruction on the prevention, identification, and reporting of child sexual abuse, as defined in 33 V.S.A. § 4912(8), and sexual violence. This shall include information regarding the signs and symptoms of sexual abuse, sexual violence, grooming processes, recognizing the dangers of child sexual abuse in and close to the home, and other predatory behaviors of sex offenders. The school board or governing body shall also provide opportunities for parents, guardians, and other interested persons to receive the same information. The Agencies of Education and of Human Services shall provide materials and technical support to any school board or governing body that requests assistance in implementing this section.

(Added 2009, No. 1, § 9, eff. July 1, 2011; amended 2011, No. 156 (Adj. Sess.), § 27, eff. May 16, 2012; 2013, No. 92 (Adj. Sess.), § 70, eff. Feb. 14, 2014.)

§ 564 Repealed

[Repealed]

1997, No. 71 (Adj. Sess.), § 106(b), eff. March 11, 1998.

§ 565 Repealed

[Repealed]

2011, No. 129 (Adj. Sess.), § 11, eff. May 11, 2012.

§ 566 Authority to borrow

Notwithstanding the provisions of subdivision 562(9) of this title, if a budget for the support of schools for the ensuing year has not been approved on or before June 30 of any year, the school board may borrow funds necessary to enable it to operate the schools on a budget of up to 87 percent of the most recently approved school budget. If the school board borrows money under this section, it shall determine how all funds shall be expended.

(Added 1995, No. 32, § 1; amended 2001, No. 8, § 7.)

§ 567 Surplus

If an audit reveals that a school district has surplus funds, the school board shall carry the funds into the next year as revenue unless authorized by the voters, at an annual or special meeting warned for the purpose, to:

(1) deposit the funds into a reserve fund established pursuant to 24 V.S.A. § 2804; or

(2) use the funds for a specific purpose.

(Added 2003, No. 107 (Adj. Sess.), § 4; amended 2013, No. 92 (Adj. Sess.), § 71, eff. Feb. 14, 2014.)

§ 568 School branding

(a) Definitions. As used in this section:

(1) “School” means a public school or an independent school approved under section 166 of this title.

(2) “School board” means the board of directors or other governing body of an educational institution when referring to an independent school.

(3) “School branding” means any name, symbol, or image used by a school as a mascot, nickname, logo, letterhead, team name, slogan, motto, or other identifier.

(b) Model policy.

(1) The Secretary of Education, in consultation with stakeholder groups, including the Vermont School Boards Association, shall develop and, from time to time, update a model nondiscriminatory school branding policy. The policy shall prohibit school branding that directly or indirectly references or stereotypes the likeness, features, symbols, traditions, or other characteristics that are specific to either:

(A) the race, creed, color, national origin, sexual orientation, or gender identity of any person or group of persons; or

(B) any person, group of persons, or organization associated with the repression of others.

(2) The policy shall provide a process for an individual to file a complaint that an element of school branding is in violation of the policy. Complaints shall be determined first by the school board of the district and, if the individual is unsatisfied with the decision of the board, may be appealed to the Secretary of Education.

(3) The policy shall also require school boards to review the district’s school branding to ensure compliance with the policy after any school branding changes or updates to the policy.

(c) School branding policy adoption. Each school board shall develop, adopt, and ensure implementation of, and make available in the manner described under subdivision 563(1) of this title, a nondiscriminatory school branding policy that shall be at least as comprehensive as the model policy developed by the Secretary. Any school board that fails to adopt such a policy shall be presumed to have adopted the most current model policy published by the Secretary.

(Added 2021, No. 152 (Adj. Sess.), § 2, eff. July 1, 2022.)

§ 569 Purple Star Campus designation

(a) As used in this section, “military-connected student” means a student who is a dependent of a current or former member of:

(1) the U.S. military serving in the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard on active duty;

(2) the Vermont National Guard;

(3) a reserve force of the U.S. Armed Forces; or

(4) a member of a military or reserve force described in subdivision (1), (2), or (3) of this subsection who was killed in the line of duty.

(b) The Agency of Education shall designate a school district as a Purple Star Campus if the school district applies and qualifies for the designation under this section.

(c) To qualify as a Purple Star Campus, a school district shall:

(1) designate a staff member as a military liaison, whose duties include:

(A) identifying military-connected students enrolled in the district’s schools;

(B) serving as the point of contact between the school district and military-connected students and their families;

(C) determining appropriate school services available to military- connected students; and

(D) assisting in coordinating school programs relevant to military- connected students;

(2) maintain within the school district an internet website with an easily accessible web page that includes resources for military-connected students and their families, including information regarding:

(A) relocation to, enrollment at, registration at, and transferring records to the school district;

(B) academic planning, course sequences, and advanced classes available at the school district; and

(C) counseling and other support services available for military- connected students enrolled in the school district;

(3) maintain a transition program led by students, where appropriate, that assists military-connected students in transitioning into the school district;

(4) offer professional development for staff members on issues related to military-connected students; and

(5) offer at least one of the following initiatives:

(A) a resolution showing support for military-connected students and their families;

(B) recognition of the Month of the Military Child or Military Family Month with relevant events hosted by the school district; or

(C) a partnership with a local military installation that provides opportunities for active duty military members to volunteer with the school district, speak at an assembly, or host a field trip.

(d) To comply with the requirements under subdivision (c)(2), (4), or (5) of this section, a school district may partner with a third party to provide those services and initiatives.

(Added 2021, No. 140 (Adj. Sess.), § 7, eff. May 27, 2022.)

Subchapter 5 Harassment, Hazing, and Bullying

§ 570 Harassment, hazing, and bullying prevention policies

(a) State policy. It is the policy of the State of Vermont that all Vermont educational institutions provide safe, orderly, civil, and positive learning environments. Harassment, hazing, and bullying have no place and will not be tolerated in Vermont schools. No Vermont student should feel threatened or be discriminated against while enrolled in a Vermont school.

(b) Prevention policies. Each school board shall develop, adopt, ensure the enforcement of, and make available in the manner described under subdivision 563(1) of this title harassment, hazing, and bullying prevention policies that shall be at least as stringent as model policies developed by the Secretary. Any school board that fails to adopt one or more of these policies shall be presumed to have adopted the most current model policy or policies published by the Secretary.

(c) Notice. Annually, prior to the commencement of curricular and cocurricular activities, the school board shall provide notice of the policy and procedures developed under this subchapter to students, custodial parents or guardians of students, and staff members, including reference to the consequences of misbehavior contained in the plan required by section 1161a of this title. Notice to students shall be in age-appropriate language and should include examples of harassment, hazing, and bullying. At a minimum, this notice shall appear in any publication that sets forth the comprehensive rules, procedures, and standards of conduct for the school. The school board shall use its discretion in developing and initiating age-appropriate programs to inform students about the substance of the policy and procedures in order to help prevent harassment, hazing, and bullying. School boards are encouraged to foster opportunities for conversations between and among students regarding tolerance and respect.

(d) Duties of the Secretary. The Secretary shall:

(1) develop and, from time to time, update model harassment, hazing, and bullying prevention policies; and

(2) establish an Advisory Council to review and coordinate school and statewide activities relating to the prevention of and response to harassment, hazing, and bullying. The Council shall report annually in January to the State Board and the House and Senate Committees on Education. The Council shall include:

(A) the Executive Director of the Vermont Principals’ Association or designee;

(B) the Executive Director of the Vermont School Boards Association or designee;

(C) the Executive Director of the Vermont Superintendents Association or designee;

(D) the President of the Vermont-National Education Association or designee;

(E) the Executive Director of the Vermont Human Rights Commission or designee;

(F) the Executive Director of the Vermont Independent Schools Association or designee; and

(G) other members selected by the Secretary, at least one of whom shall be a current secondary student who has witnessed or experienced harassment, hazing, or bullying in the school environment.

(e) Definitions. In this subchapter:

(1) “Educational institution” and “school” mean a public school or an approved or recognized independent school as defined in section 11 of this title.

(2) “Organization,” “pledging,” and “student” have the same meanings as in section 570i of this title.

(3) “Harassment,” “hazing,” and “bullying” have the same meanings as in subdivisions 11(a)(26), (30), and (32) of this title.

(4) “School board” means the board of directors or other governing body of an educational institution when referring to an independent school.

(Added 2011, No. 129 (Adj. Sess.), § 12, eff. May 11, 2012; amended 2011, No. 156 (Adj. Sess.), § 32; 2013, No. 92 (Adj. Sess.), § 72.)

§ 570a Harassment

(a) Policies and plan. The harassment prevention policy required by section 570 of this title and its plan for implementation shall include:

(1) A statement that harassment, as defined in subdivision 11(a)(26) of this title, is prohibited and may constitute a violation of the public accommodations act as more fully described in article 2 of this subchapter 5.

(2) Consequences and appropriate remedial action for staff or students who commit harassment. At all stages of the investigation and determination process, school officials are encouraged to make available to complainants alternative dispute resolution methods, such as mediation, for resolving complaints.

(3) A procedure that directs students, staff, parents, and guardians how to report violations and file complaints.

(4) A description of the circumstances under which harassment may be reported to a law enforcement agency.

(5) A procedure for investigating reports of violations and complaints. The procedure shall provide that, unless special circumstances are present and documented by the school officials, an investigation is initiated no later than one school day from the filing of a complaint and the investigation and determination by school officials are concluded no later than five school days from the filing of the complaint with a person designated to receive complaints under subdivision (7) of this subsection. All internal reviews of the school’s initial determination, including the issuance of a final decision, shall, unless special circumstances are present and documented by the school officials, be completed within 30 days after the review is requested.

(6) A description of how the school board will ensure that teachers and other staff members receive training in preventing, recognizing, and responding to harassment.

(7) Annual designation of two or more people at each school campus to receive complaints and a procedure for publicizing those people’s availability.

(8) A procedure for publicizing the availability of the Vermont Human Rights Commission and the federal Department of Education’s Office of Civil Rights and other appropriate State and federal agencies to receive complaints of harassment.

(9) A statement that acts of retaliation for the reporting of harassment or for cooperating in an investigation of harassment are unlawful pursuant to 9 V.S.A. § 4503.

(b) Independent review.

(1) A student who desires independent review under this subsection because the student is either dissatisfied with the final determination of the school officials as to whether harassment occurred or believes that, although a final determination was made that harassment occurred, the school’s response was inadequate to correct the problem shall make such request in writing to the headmaster or superintendent of schools. Upon such request, the headmaster or superintendent shall initiate an independent review by a neutral person selected from a list developed jointly by the Secretary of Education and the Human Rights Commission and maintained by the Secretary. Individuals shall be placed on the list on the basis of their objectivity, knowledge of harassment issues, and relevant experience.

(2) The independent review shall proceed expeditiously and shall consist of an interview of the student and the relevant school officials and review of written materials involving the complaint maintained by the school or others.

(3) Upon the conclusion of the review, the reviewer shall advise the student and the school officials as to the sufficiency of the school’s investigation, its determination, the steps taken by the school to correct any harassment found to have occurred, and any future steps the school should take. The reviewer shall advise the student of other remedies that may be available if the student remains dissatisfied and, if appropriate, may recommend mediation or other alternative dispute resolution.

(4) The independent reviewer shall be considered an agent of the school for the purpose of being able to review confidential student records.

(5) The costs of the independent review shall be borne by the public school district or independent school.

(6) Nothing in this subsection shall prohibit the school board from requesting an independent review at any stage of the process.

(7) Evidence of conduct or statements made in connection with an independent review shall not be admissible in any court proceeding. This subdivision shall not require exclusion of any evidence otherwise obtainable from independent sources merely because it is presented in the course of an independent review.

(8) The Secretary may adopt rules implementing this subsection.

(Added 2011, No. 129 (Adj. Sess.), § 12, eff. May 11, 2012; amended 2013, No. 34, § 10; 2013, No. 92 (Adj. Sess.), § 72, eff. Feb. 14, 2014.)

§ 570b Hazing

The hazing prevention policy required by section 570 of this title and its plan for implementation shall include:

(1) a statement that hazing, as defined in subdivision 11(a)(30) of this title, is prohibited and may be subject to civil penalties pursuant to article 3 of this subchapter 5;

(2) a procedure that directs students, staff, parents, and guardians how to report violations and file complaints;

(3) a procedure for investigating reports of violations and complaints;

(4) a description of the circumstances under which hazing may be reported to a law enforcement agency;

(5) appropriate penalties or sanctions, or both, for organizations that or individuals who engage in hazing and revocation or suspension of an organization’s permission to operate or exist within the institution’s purview if that organization knowingly permits, authorizes, or condones hazing;

(6) a description of how the school board will ensure that teachers and other staff members receive training in preventing, recognizing, and responding to hazing; and

(7) annual designation of two or more people at each school campus to receive complaints and a procedure for publicizing those people’s availability.

(Added 2011, No. 129 (Adj. Sess.), § 12, eff. May 11, 2012; amended 2013, No. 92 (Adj. Sess.), § 72, eff. Feb. 14, 2014.)

§ 570c Bullying

The bullying prevention policy required by section 570 of this title and its plan for implementation shall include:

(1) a statement that bullying, as defined in subdivision 11(a)(32) of this title, is prohibited;

(2) a procedure that directs students, staff, parents, and guardians how to report violations and file complaints;

(3) a procedure for investigating reports of violations and complaints;

(4) a description of the circumstances under which bullying may be reported to a law enforcement agency;

(5) consequences and appropriate remedial action for students who commit bullying;

(6) a description of how the school board will ensure that teachers and other staff members receive training in preventing, recognizing, and responding to bullying; and

(7) annual designation of two or more people at each school campus to receive complaints and a procedure both for publicizing the availability of those people and clarifying that their designation does not preclude a student from bringing a complaint to any adult in the building.

(Added 2011, No. 129 (Adj. Sess.), § 12, eff. May 11, 2012.)

§§ 570d, 570e [Reserved for future use.]
§ 570f Harassment; notice and response

(a)(1) An educational institution that receives actual notice of alleged conduct that may constitute harassment shall promptly investigate to determine whether harassment occurred. After receiving notice of the alleged conduct, the school shall provide a copy of its harassment policy, including its harassment investigation procedure, to the alleged victim and the alleged perpetrator. If either the alleged victim or the alleged perpetrator is a minor, the copy of the policy shall be provided to the person’s parent or guardian. Nothing in this section shall be construed to prohibit educational institutions from investigating and imposing disciplinary consequences upon students for misconduct. Elementary and secondary school officials shall strive to implement the plan developed in accordance with subdivision 1161a(a)(6) of this title in order to prevent misconduct from escalating to the level of harassment.

(2) If, after notice, the educational institution finds that the alleged conduct occurred and that it constitutes harassment, the educational institution shall take prompt and appropriate remedial action reasonably calculated to stop the harassment.

(b) A claim may be brought under the Fair Housing and Public Accommodations Act pursuant to 9 V.S.A. chapter 139 only after the administrative remedies available to the claimant under the policy adopted by the educational institution pursuant to subsection 166(e) or section 570 of this title or pursuant to the harassment policy of a postsecondary school have been exhausted. Such a showing shall not be necessary where the claimant demonstrates that:

(1) the educational institution does not maintain such a policy;

(2) a determination has not been rendered within the time limits established under section 570a of this title;

(3) the health or safety of the complainant would be jeopardized otherwise;

(4) exhaustion would be futile; or

(5) requiring exhaustion would subject the student to substantial and imminent retaliation.

(c) To prevail in an action alleging unlawful harassment filed pursuant to this section and 9 V.S.A. chapter 139, the plaintiff shall prove both of the following:

(1) The student was subjected to unwelcome conduct based on the student’s or the student’s family member’s actual or perceived membership in a category protected by law by 9 V.S.A. § 4502.

(2) The conduct was either:

(A) for multiple instances of conduct, so pervasive that when viewed from an objective standard of a similarly situated reasonable person, it substantially and adversely affected the targeted student’s equal access to educational opportunities or benefits provided by the educational institution; or

(B) for a single instance of conduct, so severe that when viewed from an objective standard of a similarly situated reasonable person, it substantially and adversely affected the targeted student’s equal access to educational opportunities or benefits provided by the educational institution.

(d) As used in this article:

(1) “Designated employee” means an employee who has been designated by an educational institution to receive complaints of harassment pursuant to section 570a of this title or in accordance with the harassment policy of a postsecondary school.

(2) “Educational institution” means a Vermont public or independent school or a postsecondary school that offers or operates a program of college or professional education for credit or degree in Vermont.

(3) “Notice” means a written complaint or oral information that harassment may have occurred that has been provided to a designated employee from another employee, the student allegedly subjected to the harassment, another student, a parent or guardian, or any other individual who has reasonable cause to believe the alleged conduct may have occurred. If the complaint is oral, the designated employee shall promptly reduce the complaint to writing, including the time, place, and nature of the conduct, and the identity of the participants and complainant.

(Added 2003, No. 91 (Adj. Sess.), § 3; amended 2011, No. 140 (Adj. Sess.), § 1, eff. May 15, 2012; 2013, No. 92 (Adj. Sess.), §§ 74, 75, eff. Feb. 14, 2014.)

§ 570i Definitions

As used in this subchapter:

(1) “Educational institution” means a Vermont public or independent school or a postsecondary school that offers or operates a program of college or professional education for credit or a degree in Vermont.

(2) “Organization” means a fraternity, sorority, athletic team, association, corporation, order, society, corps, cooperative, club, or other similar group, whose members primarily are students at an educational institution, and that is affiliated with the educational institution.

(3) “Pledging” means any action or activity related to becoming a member of an organization.

(4) “Student” means any person who:

(A) is registered in or in attendance at an educational institution;

(B) has been accepted for admission at the educational institution where the hazing incident occurs; or

(C) intends to attend an educational institution during any of its regular sessions after an official academic break.

(Added 1999, No. 120 (Adj. Sess.), § 9; amended 2013, No. 92 (Adj. Sess.), § 78, eff. Feb. 14, 2014.)

§ 570j Unlawful conduct

(a) For purposes of this subchapter, “hazing” means any intentional, knowing, or reckless act committed by a student, whether individually or in concert with others, against another student:

(1) in connection with pledging, being initiated into, affiliating with, holding office in, or maintaining membership in any organization that is affiliated with the educational institution; and

(2) that is intended to have the effect of, or should reasonably be expected to have the effect of, endangering the mental or physical health of the student.

(b) Hazing shall not include any activity or conduct that furthers legitimate curricular, extracurricular, or military training program goals, provided that:

(1) the goals are approved by the educational institution; and

(2) the activity or conduct furthers the goals in a manner that is appropriate, contemplated by the educational institution, and normal and customary for similar programs at other educational institutions.

(c) It shall be unlawful to:

(1) engage in hazing;

(2) solicit, direct, aid, or attempt to aid, or abet another person engaged in hazing; or

(3) knowingly fail to take reasonable measures within the scope of the person’s authority to prevent hazing.

(d) It is not a defense in an action under this subchapter that the person against whom the hazing was directed consented to or acquiesced in the hazing activity.

(Added 1999, No. 120 (Adj. Sess.), § 9; amended 2013, No. 92 (Adj. Sess.), § 79, eff. Feb. 14, 2014.)

§ 570k Civil penalty; Judicial Bureau; waiver penalty

(a) A person who commits an unlawful act under this subchapter shall be subject to a civil penalty of not more than $5,000.00.

(b) Any law enforcement officer may issue a summons and complaint for an act of hazing, which shall be heard by the Judicial Bureau pursuant to the procedures provided in 4 V.S.A. chapter 29.

(c) The Court Administrator shall appoint a panel of Judicial Bureau hearing officers to establish a waiver penalty for an act of hazing.

(d) Nothing in this section shall limit or affect the right of an educational institution to enforce its own penalties against hazing.

(Added 1999, No. 120 (Adj. Sess.), § 9; amended 2013, No. 92 (Adj. Sess.), § 80, eff. Feb. 14, 2014.)

§ 570l Criminal prosecution and civil action

Nothing in this subchapter shall limit or preclude a criminal prosecution or any criminal or civil action based on any act that may constitute hazing.

(Added 1999, No. 120 (Adj. Sess.), § 9; amended 2013, No. 92 (Adj. Sess.), § 81, eff. Feb. 14, 2014.)

Subchapter 6 Contracts Between Districts to Operate Schools Jointly

§ 571 Contracts to construct and operate joint schools

By a majority vote of the voters present and voting at a meeting, duly warned for that purpose, a town school district or incorporated school district may authorize its school directors to enter into a contract or contracts with other towns and parties for the financing, construction, maintenance, and operation of a competent school or schools to provide means and facilities for the convenient and adequate development, education, and training of the youths of such town.

(2021, No. 176 (Adj. Sess.), § 1, eff. June 7, 2022.)

§ 572 Joint boards for joint, contract, or consolidated schools

(a) The control of joint, contract, or consolidated schools, set up by two or more school districts, shall be vested in a joint school board from the forming school districts, and the members of the joint school board shall be chosen in the manner provided for in, and for the purpose of, this section. A joint, contract, or consolidated school board shall be referred to as a joint board.

(b) The joint board shall have full authority to act on all matters pertaining to the finance, location, construction, maintenance, and operation of schools set up as joint, contract, or consolidated schools, including the selection and hiring of teachers.

(c) The joint board shall consist of members chosen annually from the duly elected school boards of the school districts, each school district board electing a member or members to the joint board from among its own members.

(d) Unless the school districts that are parties to the contract have agreed upon a different method of allocating board members that is consistent with law, the allocation of the board members shall be as provided in this subsection. The school district with the largest number of pupils attending the joint, contract, or consolidated school shall have three members on the joint board. Each other school district shall have at least one member on the joint board, and its total membership shall be determined by dividing the number of pupils from the school district with the largest enrollment by three, rounding off the quotient to the nearest whole number, which shall be called the “factor” and by then dividing the pupil enrollment of each of the other school districts by the “factor,” rounding off this quotient to the nearest whole number, this number being the number of school directors on the joint board from each of the other school districts. Pupil enrollment for the purpose of determining the number of members on the joint board to which each school district is entitled shall be taken from the school registers on January 1 of the calendar year in which the school year starts. The joint board shall annually select from among its members a chair and a clerk and shall also select a treasurer from among the treasurers of the contracting districts.

(Amended 1961, No. 79; 1991, No. 173 (Adj. Sess.); 2011, No. 129 (Adj. Sess.), § 8, eff. May 11, 2012; 2019, No. 131 (Adj. Sess.), § 65.)

Subchapter 7 Cell Phone, Personal Electronic Device, and Social Media Use in Schools

§ 581 Intent

It is the intent of the General Assembly for all students in Vermont to access the benefits of a phone- and social media-free school environment, which promotes focus, improved mental health, and increased social cohesion.

(Added 2025, No. 72, § 17, eff. June 27, 2025.)

§ 582 Definitions

As used in this subchapter:

(1) “Cell phone” means any device capable of using cellular technology to facilitate voice service through a commercial telecommunications company, regardless of whether the device can access internet services and electronic mail.

(2) “Individualized health care plan” means a written document developed by a school nurse, in collaboration with parents, students, and other relevant professionals, to outline specific health care needs and management strategies tailored to the unique health condition of a student.

(3) “Parent” means a parent of a student and includes legal guardians who are legally authorized to make education decisions for the student.

(4) “School” means any public school, approved independent school, or career and technical education center located in Vermont.

(5) “Student” means an individual currently enrolled in or registered at a school located in Vermont, as defined under subdivision (4) of this section.

(Added 2025, No. 72, § 17, eff. June 27, 2025.)

§ 583 Student use of cell phones and personal electronic devices in schools

(a) Model policy.

(1) The Secretary of Education, in consultation with the Vermont School Boards Association, the Vermont Independent School Association, and a representative from the Vermont Coalition for Phone and Social Media Free Schools, shall develop, and review at least annually, a policy to, subject to the exceptions in subdivision (2) of this subsection, prohibit student use of cell phones and non-school-issued personal electronic devices that connect to cellular networks, the internet, or have wireless capabilities at school from arrival to dismissal.

(2) The model policy shall provide exceptions for students to use a cell phone or personal electronic device if such use is:

(A) required as part of a student’s individualized health care plan, individualized education program, or 504 plan, which shall be documented according to applicable State and federal law; provided, however, that if such use is required to meet an international student’s special education needs or as part of a disability accommodation, and the international student does not have an individualized education program or 504 plan, the need for such use shall be documented in a manner the school deems appropriate;

(B) approved by an administrator for an academic, school-sponsored athletic, or cocurricular purpose, for the most limited use reasonably possible; or

(C) required for compliance with the McKinney-Vento Homeless Assistance Act, 42 U.S.C. §§ 11431–11435.

(b) Policy adoption.

(1) Beginning with the 2026–2027 school year, each school board shall develop, adopt, ensure the enforcement of, and make available in the manner described under subdivision 563(1) of this title a student cell phone and personal electronic device use policy that shall be at least as stringent as the model policy developed by the Secretary. Any school board that fails to adopt a policy shall be presumed to have adopted the most current model policy published by the Secretary.

(2) Beginning with the 2026–2027 school year, each approved independent school shall develop, adopt, and ensure the enforcement of a student cell phone and personal electronic device use policy that shall be at least as stringent as the model policy developed by the Secretary. Any approved independent school that fails to adopt a policy shall be presumed to have adopted the most current model policy published by the Secretary.

(Added 2025, No. 72, § 17, eff. June 27, 2025.)

§ 584 Use of social media platforms in education

Schools, school districts, and supervisory unions shall be prohibited from:

(1) utilizing social media for communication with students directly unless the program or platform is approved for such communication by the school district or independent school; provided, however, that any approved communication program or platform shall allow school officials to archive all communications and prevent all communications from being edited or deleted once a communication has been sent; and

(2) requiring students to use social media for out-of-school academic work, school sports, extracurricular clubs, or any other out-of-school school-sponsored activities.

(Added 2025, No. 72, § 17, eff. June 27, 2025.)

Chapter 10 Boards of Cooperative Education Services

§ 601 Policy

It is the policy of the State to allow and encourage supervisory unions to create boards of cooperative education services to provide shared programs and services on a regional and statewide level. Formation of a board of cooperative education services shall be designed to build upon the geographically focused cooperative regions used by Vermont superintendents as of July 1, 2024; maximize the impact of available dollars through collaborative funding; reduce duplication of programs, personnel, and services; and contribute to equalizing educational opportunities for all pupils.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 602 Definitions

As used in this chapter:

(1) “Educator” means any:

(A) individual licensed under chapter 51 of this title, the majority of whose employed time in a public school district, supervisory union, or board of cooperative education services is assigned to furnish to students direct instructional or other educational services, as defined by rule of the Standards Board, or who is otherwise subject to licensing as determined by the Standards Board; or

(B) individual licensed under chapter 51 of this title, the majority of whose employed time in a public school, school district, or supervisory union is assigned to developing and managing school curriculum, evaluating and disciplining personnel, or supervising and managing a public school system or public school program.

(2) “Supervisory union” means an administrative, planning, and educational service unit created by the State Board under section 261 of this title that consists of two or more school districts. This term also means a supervisory district.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 603 Creation of board of cooperative education services; organization; Secretary approval

(a) Establishment of boards of cooperative education services. When the boards of two or more supervisory unions vote to explore the advisability of entering into a written agreement to provide shared programs and services, the interested boards shall meet and discuss the terms of any such agreement. At this meeting or a subsequent meeting, the participating boards may enter into a proposed agreement to form an association of supervisory unions to deliver shared programs and services to complement the educational programs of member supervisory unions in a cost-effective manner. An association formed pursuant to this chapter shall be known as a board of cooperative education services (BOCES) and shall be a body politic and corporate with the powers and duties afforded them under this chapter.

(b) Articles of agreement. Agreements to form a BOCES pursuant to this chapter shall take the form of articles of agreement and shall serve as the operating agreement for a BOCES. Agreements shall include a cost-benefit analysis outlining the projected financial savings or enhanced outcomes, or both, that the parties expect to realize through shared services or programs. No agreement or subsequent amendments shall take effect unless approved by the member supervisory union boards and the Secretary of Education. The Secretary shall approve articles of agreement if the Secretary finds that the formation of the proposed BOCES is in the best interests of the State, the students, and the member supervisory unions and aligns with the policy set forth in section 601 of this title, subject to the limitations of subsection (d) of this section. At a minimum, the articles of agreement shall state:

(1) the names of the participating supervisory unions;

(2) the mission, purpose, and focus of the BOCES;

(3) the programs or services to be offered by the BOCES;

(4) the financial terms and conditions of membership of the BOCES, including any applicable membership fee;

(5) the service fees for member supervisory unions and the service fees for nonmember supervisory unions, as applicable;

(6) the detailed procedure for the preparation and adoption of an annual budget with carryforward provisions;

(7) the method of termination of the BOCES and the withdrawal of member supervisory unions, which shall include the apportionment of assets and liabilities;

(8) the procedure for admitting new members and for amending the articles of agreement;

(9) the powers and duties of the board of directors of the BOCES to operate and manage the association, including:

(A) board meeting attendance requirements;

(B) consequences for failure to attend a board meeting;

(C) a conflict-of-interest policy; and

(D) a policy regarding board member salaries or stipends; and

(10) any other matter not incompatible with law that the member supervisory unions consider necessary to the formation of the BOCES.

(c) Board of directors. A BOCES shall be managed by a board of directors, which shall be composed of one person appointed annually by each member supervisory union board. Appointed persons shall be members of a member supervisory union board or the superintendent or designee of the member supervisory union. Each member of the BOCES board of directors shall be entitled to a vote. No member of the board of directors of a BOCES shall serve as a member of a board of directors or as an officer or employee of any related for-profit or nonprofit organization. The board of directors shall elect a chair from its members and provide for such other officers as it may determine are necessary. The board of directors may also establish subcommittees and create board policies and procedures as it may determine are necessary. The board of directors shall meet not fewer than four times annually. Each member of the board of directors shall provide updates on the activities of the BOCES on a quarterly basis to the member’s appointing supervisory union board at an open board meeting.

(d) Number of BOCESs. There shall be not more than seven BOCESs statewide. Supervisory unions shall not be a member of more than one BOCES but may seek services as a nonmember from other BOCESs.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 604 Powers of boards of cooperative education services

(a) In addition to any other powers granted by law, a BOCES shall have the power to provide educational programs, services, facilities, and professional and other staff that, in its discretion, best serve the needs of its members. A BOCES shall follow all applicable State and federal laws in its provision of services, including Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400–1482.

(b) A BOCES may employ an executive director who shall serve under the general direction of the board and who shall be responsible for the care and supervision of the BOCES. The board shall annually evaluate the executive director’s performance and effectiveness in implementing the programs, policies, and goals of the BOCES. The executive director shall not serve as a board member, officer, or employee of any related for-profit or nonprofit organization.

(c) A BOCES shall be a body politic and corporate and shall have standing to sue and be sued to the same extent as a school district. A BOCES may enter into contracts for the purchase of supplies, materials, and services and for the purchase or leasing of land, buildings, and equipment as considered necessary by the board of directors. Section 559 of this title shall apply to the procurement of services or items with costs that exceed $40,000.00, as well as high-cost construction contracts, as defined by subsection 559(b) of this title.

(d) The board of directors of a BOCES may apply for State, federal, or private grants, for which a BOCES may be otherwise eligible, to obtain funds necessary to carry out the purpose for which the BOCES is established. Nothing in this chapter is intended to create an entitlement to federal funds distributed by the Agency of Education to local education agencies.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 605 Financing, budgeting, and accounting

(a) Education cooperative fund. A BOCES shall establish and manage a fund to be known as an education cooperative fund. All monies contributed by the member school districts and all grants or gifts from the federal government, State government, charitable foundations, private corporations, or any other source shall be deposited into the fund.

(b) Treasurer.

(1) A BOCES shall appoint a treasurer who may be a treasurer of a member school district and who shall be sworn in before entering the duties of the office.

(2) The treasurer may, subject to the direction of the board of directors, receive and disburse all money belonging to the board without further appropriation.

(3) The treasurer shall keep financial records of cash receipts and disbursements and shall make those records available to the board of directors upon request.

(4) The board of directors shall ensure that its blanket bond covers a newly appointed treasurer before the treasurer enters upon the duties of the office. In lieu of a blanket bond, a BOCES may choose to provide suitable crime insurance coverage. The board of directors may pay reasonable compensation to the treasurer for services rendered and shall evaluate the treasurer’s performance annually.

(c) Financial accounting system. A BOCES shall use the uniform chart of accounts and financial reporting requirements used by supervisory unions as its financial accounting system.

(d) Audit. Annually, a BOCES shall cause an independent audit to be made of its financial statements consistent with generally accepted governmental auditing standards and shall discuss and vote to accept the audit report at an open meeting of the board. The board shall transmit a copy of each audit to the boards of its member supervisory unions.

(e) Annual statement. Annually, a BOCES shall prepare financial statements, including:

(1) a statement of net assets; and

(2) a statement of revenues, expenditures, and changes in net assets.

(f) Budget. A board of cooperative education services shall adopt a budget prior to the beginning of the fiscal year for which the budget is adopted.

(g) Loans. A BOCES may, upon approval of its members, negotiate or contract with any person, corporation, association, or company for a loan not to exceed the difference between the anticipated revenues for the current fiscal year for the budget of the BOCES and the amount credited to date to said budget in order to pay current obligations. Such loan shall be liquidated within six months thereafter from monies subsequently credited to said budget. The total principal, interest, and fees to be paid on such loan shall not exceed the total amount of the authorized budget for the same length of time.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 606 Annual report; public information

(a) The board of a BOCES shall prepare an annual report concerning the affairs of the BOCES and have it printed and distributed to the boards of the member supervisory unions. The annual report shall include, at a minimum:

(1) information on the programs and services offered by the BOCES, including information on the cost-effectiveness of such programs and services and progress made towards achieving the objectives and purposes set forth in the articles of agreement; and

(2) audited financial statements and the independent auditor’s report.

(b) A BOCES shall maintain an internet website that makes the following information available to the public at no cost:

(1) a list of the members of the board of directors of the BOCES;

(2) copies of approved minutes of open meetings held by the board of the BOCES;

(3) a copy of the articles of agreement and any subsequent amendments; and

(4) a copy of the annual report required under subsection (a) of this section.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 607 Employment

(a) A BOCES shall be considered to be a public employer and may employ personnel, including educators, to carry out the purposes and functions of the board. Annually, the board of a BOCES shall conduct an area survey of the salaries of the educators and staff employed by the BOCES’s member supervisory unions and school districts.

(b) No person shall be eligible for employment by a BOCES as an educator unless the person is appropriately licensed by the Standards Board for Professional Educators pursuant to chapter 51 of this title.

(c) A person employed by a BOCES as an educator shall be a participant in the Vermont State Teachers’ Retirement System pursuant to chapter 55 of this title.

(d) A person who is employed by a BOCES and who is not educator shall be a participant in the Vermont Municipal Employees’ Retirement System pursuant to 24 V.S.A. chapter 125.

(e) Educators employed by a BOCES shall be entitled to organize pursuant to chapter 57 of this title.

(f) Employees employed by a BOCES and who are not educators shall be entitled to organize pursuant to 21 V.S.A. chapter 22.

(g) Educators and employees who are employed by a BOCES shall be provided health care benefits pursuant to chapter 61 of this title.

(Added 2023, No. 168 (Adj. Sess.), § 2, eff. July 1, 2024.)

Chapter 11 Union School Districts

Subchapter 1 General Provisions

§ 701 Policy

It is the policy of the State to provide substantially equal educational opportunities for all children in Vermont by authorizing two or more school districts, including an existing union school district, to form a union school district for the purpose of providing for the education of its resident students in the grades for which it is organized, and for the new union school district to be a body politic and corporate with the powers incident to a municipal corporation, with all of the rights and responsibilities that a town school district has in providing for the education of its resident students. Formation of union school districts shall be designed to encourage and support local decisions and actions that provide substantial equity of educational opportunities statewide, lead students to achieve or exceed the State’s Education Quality Standards, maximize operational efficiencies, promote transparency and accountability, and be delivered at a cost that parents, voters, and taxpayers value.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 702 Definitions

As used in this chapter:

(1) “Board clerk” means the individual selected to be clerk of the board of a union school district by the members of the board from among their number pursuant to the provisions of sections 714 (initial members of union school district board), 729 (unified union district board members), and 747 (union elementary and union high school district board members) of this chapter.

(2) “District clerk” means the individual elected as clerk of a union school district by the voters of the district pursuant to the provisions of sections 715 (union school district organizational meeting), 735 (unified union school district officers and election), and 753 (union elementary and union high school district officers and election) of this chapter.

(3) “Forming districts” means all school districts, including union school districts, that are located within the geographical boundaries of a proposed or voter-approved union school district prior to the operational date of the union school district, which will potentially merge or have merged to form the new union school district.

(4) “Member district” means a school district, which can be a union school district, that is a member of a union elementary school district or a union high school district for certain grades, prekindergarten through grade 12, and is a distinct district organized to provide for the education of its resident students for all other grades, whether by operating one or more schools or paying tuition.

(5) “Operational date” means the date on which a union school district formed pursuant to the provisions of this chapter assumes full and sole responsibility for the education of all resident students in the grades for which it is organized.

(6) “School district” means a school district organized as a town school district, city school district, incorporated school district, or union school district, unless clearly inapplicable.

(7) In addition to its plain meaning, “town” means a city or incorporated village.

(8) In addition to its plain meaning, “town school district” means a city school district, or incorporated school district, and does not mean a union school district.

(9) “Town within a unified union school district” means each town located inside the geographic boundaries of a unified union school district and in which the district’s resident students live.

(10) “Transitional period” means the period of time beginning on the day on which a union school district becomes a legal entity pursuant to section 713 (certification of votes) of this chapter and continuing until its operational date.

(11) “Unified union school district” means a union school district organized to provide for the education of the district’s resident students in all grades, prekindergarten through grade 12.

(12) “Union elementary school district” and “union high school district” mean a union school district organized to provide for the education of the district’s resident students in fewer than all grades, prekindergarten through grade 12.

(13)(A) “Union school district” means a municipality formed under the provisions of this chapter that is governed by a single publicly elected board and that is responsible for the education of students residing in two or more towns in the grades for which the district is organized by:

(i) operating a school or schools for all grades;

(ii) operating a school or schools for all students in one or more grades and paying tuition for all students in the remaining grade or grades; or

(iii) paying tuition for all grades.

(B) Use of the term “union school district” or “union district” includes a union elementary school district, union high school district, and unified union school district unless the context clearly limits it to fewer than all options.

(14) “Weighted voting” means a system, sometimes used in the “proportional to town population” model of union school district board membership, set forth in subdivisions 711(d)(1), 711(e)(1), 730(a)(1), 748(a)(1), and 748(b)(1) of this chapter, where proportionality is achieved by assigning a different number of votes to each board member.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 703 Application of other laws and articles of agreement

(a) Other education laws. The provisions of this chapter are intended to be in addition to the general provisions of law pertaining to schools, school districts, and supervisory unions. General provisions of law shall apply to union school districts unless inconsistent with or otherwise provided in this chapter.

(b) Existing articles of agreement.

(1) If a union school district joins with other school districts to form a new union school district pursuant to the provisions of sections 706–715 (process of exploration, formation, and organization of a union school district) of this chapter, then the articles of agreement of the existing union school district are repealed, and the articles of agreement of the new union school district shall govern.

(2) If a union school district joins another existing union school district pursuant to the provisions of section 721 (joining an existing union school district) of this chapter, then the articles of agreement of the joining district are repealed, and the articles of agreement of the enlarged union school district shall govern, unless the districts agree otherwise.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

Subchapter 2 Exploration, Formation, and Organization

§ 706 Proposal to form study committee; budget and membership

(a) Establishment of committee. When the boards of two or more school districts vote to establish a study committee to study the advisability of forming a union school district or are petitioned to do so by at least five percent of voters in the school district, the boards shall meet with the superintendent or superintendents of each school district. With the advice of the superintendent or superintendents, the boards shall establish a budget for the study committee’s work and shall determine the number of persons to serve on the study committee pursuant to subsection (b) of this section.

(b) Budget and membership. Each participating school district’s share of the established budget and membership on the study committee shall be the same as the proportion of the school district’s equalized pupils to the total equalized pupils of all school districts intending to participate formally in the study committee. As used in this subsection, “equalized pupils” has the same meaning as in section 4001 of this title.

(c) Existing union school districts.

(1) Existing union elementary or union high school district; proposed unified union school district. If the board of an existing union elementary or union high school district votes to participate in a study committee to consider formation of a unified union school district, or is petitioned by the voters to do so, then:

(A) The interests of the existing union school district shall be represented by its member districts on the study committee.

(B) Any warning and vote on the study committee budget pursuant to section 707 of this chapter and the warning and vote on any resulting proposal to form a unified union school district pursuant to section 710 shall be at the member district level.

(C) If the existing union school district does not have any member districts because all towns for which it is organized are members of both a union elementary school district and a union high school district, then the existing union school district shall represent its own interests on the study committee, and the towns within it shall not participate on its behalf.

(D) If a town is a member of both a union elementary school district and a union high school district, is not independently organized as a district that is responsible for the education of students in any grade, and does not have a town school district board, then notwithstanding other provisions to the contrary:

(i) To the extent possible, the boards of the union elementary and union high school districts of which the town is a member shall make a reasonable attempt, jointly, to appoint a member to the study committee who resides in the town.

(ii) The legislative body or appropriate officer of the town shall perform electoral functions, including warning meetings and conducting the voting process, ordinarily performed by and in member districts on behalf of a union school district.

(2) Existing unified union school district; proposed unified union school district. If the board of a unified union school district votes to participate in a study committee to consider formation of a new unified union school district rather than the enlargement of the existing unified union school district pursuant to section 721 (joining an existing union school district) of this chapter, or is petitioned by the voters to do so, then:

(A) The existing unified union school district shall represent its own interests on the study committee, and the towns within it shall not participate on its behalf.

(B) To the extent possible, the board of the existing unified union school district shall make a reasonable attempt to appoint members to the study committee who reside in each town within the district.

(C) Any warning and vote on the study committee budget pursuant to section 707 of this chapter and the warning and vote of the electorate on any resulting proposal to form a new unified union school district pursuant to section 710 shall proceed pursuant to the provisions for commingled Australian ballot voting as set forth in subchapter 3 (unified union school districts) of this chapter.

(3) Existing union elementary or union high school district; proposed union elementary or union high school district. If the board of an existing union elementary or union high school district votes to participate in a study committee to consider formation of a new union elementary or union high school district rather than enlarging the existing union school district pursuant to section 721 (joining an existing union school district) of this chapter, or is petitioned by the voters to do so, then:

(A) The existing union school district shall represent its own interests on the study committee, and the member districts of the existing union school district shall not participate on its behalf.

(B) To the extent possible, the board of the existing union school district shall make a reasonable attempt to appoint members to the study committee who reside in each of the member districts within the existing union school district.

(C) Any warning and vote on the study committee budget pursuant to section 707 of this chapter and the warning and vote of the electorate on any resulting proposal to form a new union elementary or union high school district pursuant to section 710 of this chapter shall proceed pursuant to the provisions for commingled Australian ballot voting as set forth in subchapter 4 (union elementary and union high school districts) of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 707 Approval of study budget; appointment of study committee; participation

(a) Proposed budget exceeding $50,000.00.

(1) If the proposed budget established in section 706 of this chapter exceeds $50,000.00, then subject to the provisions of that section the board of each potentially participating school district shall warn the district’s voters to meet at an annual or special school district meeting to vote whether to appropriate funds necessary to support the district’s financial share of a study committee’s costs. The meeting in each school district shall be warned for the same date. The warning in each school district shall contain an identical article in substantially the following form:

Shall the school district of _______________________________________ appropriate funds necessary to support the school district’s financial share of a study to determine the advisability of forming a union school district with some or all of the following school districts: _______________________________________ , _______________________________________ , and _______________________________________ ? It is estimated that the _______________________________________ school district’s share, if all of the identified school districts vote to participate, will be $_______________________________________ . The total proposed budget, to be shared by all participating school districts is $_______________________________________ .”

(2) If the vote in subdivision (1) of this subsection is in the affirmative in two or more school districts, then the boards of the affirming school districts shall appoint a study committee consisting of the number of persons determined pursuant to section 706 (proposed study committee budget and membership) of this chapter. At least one current board member from each participating school district shall be appointed to the study committee. The board of a school district appointing more than one person to the study committee may appoint residents of the school district who are not members of the board to any of the remaining seats.

(3) The sums expended for study purposes under this section shall be considered part of the approved cost of any project in which the union school district, if created, participates pursuant to chapter 123 of this title.

(b) Proposed budget not exceeding $50,000.00.

(1) If the proposed budget established in section 706 of this chapter does not exceed $50,000.00, then the boards of the participating school districts shall appoint a study committee consisting of the number of persons determined under that section. At least one current board member from each participating school district shall be appointed to the study committee. The board of a school district appointing more than one person to the study committee may appoint residents of the school district who are not members of the board to any of the remaining seats.

(2) The sums expended for study purposes under this section shall be considered part of the approved cost of any project in which the union school district, if created, participates pursuant to chapter 123 of this title.

(c) Additional costs.

(1) If the voters approve a budget that exceeds $50,000.00 but the study committee later determines that its budget is likely to exceed the projected, voter-approved amount, then the boards of all participating school districts shall obtain voter approval for the amounts exceeding the previously approved budget in the manner set forth in subdivision (a)(1) of this section before the study committee obligates or expends sums in excess of the initial voter-approved amount.

(2) If a proposed budget does not exceed $50,000.00 at the time the school boards appoint members to the study committee, but the study committee later determines that its total budget is likely to exceed $50,000.00, then the boards of all participating school districts shall obtain voter approval for the amounts exceeding $50,000.00 in the manner set forth in subdivision (a)(1) of this section before the study committee obligates or expends funds in excess of $50,000.00.

(d) Grants. Costs to be paid by State, federal, or private grants shall not be included when calculating whether a study committee’s budget or proposed budget exceeds $50,000.00.

(e) Subsequent appointments of persons to the study committee; vacancy.

(1) Subject to the requirement that each school board appoint at least one current member of the board, the board of a participating school district shall appoint a person residing in the school district to the study committee if one of the school district’s seats is vacant because a study committee member:

(A) is no longer a member of the school district’s board and was the sole board member appointed by that school district;

(B) has resigned from or is no longer able to serve on the study committee; or

(C) has not attended three consecutive study committee meetings without providing notice to the study committee chair of the reason for each absence and obtaining a determination of the study committee members that the absences were reasonable.

(2) Notice under subdivision (1)(C) of this subsection shall be given in advance of absences whenever possible.

(f) Formal participation in study committee.

(1) A school district shall not be a formal participant in and appoint members to more than one study committee created under this chapter at any one point in time.

(2) A school district shall not formally withdraw its participation in an existing study committee after the school district has appointed members to that committee until the study committee dissolves pursuant to subsection 708(e) of this chapter.

(g) Additional formal participants.

(1) Subject to the provisions of subsection (f) of this section, a school district may join as an additional formal participant in a study committee after creation of the committee if:

(A) the school district’s board has requested the committee’s approval to participate after either a vote of the school district’s board or a petition by five percent of the school district’s voters and if the study committee votes to approve formal participation by the district; or

(B) the study committee has voted to ask the school district to participate formally and either the board of the school district votes to approve formal participation or is petitioned by five percent of the school district’s voters to do so.

(2) A school district that becomes a formal participant in an existing study committee pursuant to this subsection is subject to the provisions of section 706 (proposed study committee budget and membership) of this chapter regarding financial and representational proportionality and to all other requirements of study committees set out in this chapter.

(h) Informal participation by other school districts.

(1) The board of a school district that is not a formal participant in an existing study committee may authorize one or more of the board’s members to contact the study committee to discuss whether it may be advisable to include the school district within a proposal to form a new union school district as an “advisable” district, as described in section 708 (necessary and advisable districts) of this chapter.

(2) An existing study committee may authorize one or more of its members to contact the board of one or more additional school districts that are not formal participants in the committee to discuss whether it may be advisable to include the school district within a proposal to form a new union school district as an “advisable” district.

(3) An existing study committee may invite representatives of a nonparticipating school district’s board to participate informally in the study committee’s deliberations.

(4) Nothing in this section shall be construed to prohibit the board of a school district from authorizing informal exploration between and among the boards of school districts prior to the formation of a study committee.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 708 Study committee; necessary and advisable districts; contents of study committee report and proposed articles; dissolution of committee

(a) Study committee; process.

(1) The superintendent shall convene a study committee’s first meeting when the committee’s members are appointed. If the participating districts are members of more than one supervisory union, then the superintendents shall decide which of their number shall convene the meeting. The study committee members shall elect a chair who shall notify the Secretary in writing of the committee’s creation and the chair’s election within 30 days following the vote of the committee’s creation.

(2) Staff of the supervisory union or unions shall provide administrative assistance to the study committee.

(3) The Secretary shall cooperate with the study committee and is authorized to make Agency staff available to provide technical assistance to the committee.

(4) The study committee is a public body pursuant to 1 V.S.A. § 310(4) and is subject to the requirements of 1 V.S.A. chapter 5, subchapter 2.

(5) Although a study committee should try to achieve consensus, committee decisions shall be reached by a majority of all committee members present and voting.

(b) Necessary and advisable school districts. If a study committee decides to recommend formation of a union school district, then it shall determine whether each school district included in the recommended formation is “necessary” or “advisable” to formation.

(1) “Necessary” school district.

(A) The study committee shall identify a school district as “necessary” to formation of the union school district only if the school district is a formal participant in the study committee.

(B) Subject to the provisions of subsection 706(c) of this chapter, the school board of a “necessary” school district is required to warn a vote of the electorate under sections 710 (vote to form union school district) and 711 (initial members of union school district board election) of this chapter.

(C) A proposed union school district is formed only if the voters voting in each “necessary” school district vote to approve formation.

(2) “Advisable” school district.

(A) The study committee may identify any school district as “advisable” to formation of the union school district even if the school district is not a formal participant in the study committee.

(B) The school board of an “advisable” school district is not required to warn a vote of the electorate under sections 710 (vote to form union school district) and 711 (initial members of union school district board election) of this chapter, except upon application of 10 percent of the voters in the school district.

(C) Voter approval in an “advisable” district is not required for formation of a new union school district.

(3) Existing union elementary or union high school district. Notwithstanding other provisions of this subsection, an existing union elementary or union high school district is “necessary” to the formation of a unified union school district even though its interests are represented by its member districts pursuant to subdivision 706(c)(1) (study committee budget and membership for existing union school districts) of this chapter.

(c) Proposal to form union school district; report and proposed articles of agreement. If a study committee determines that it is advisable to propose formation of a union school district, then it shall prepare a report analyzing the strengths and challenges of the current structures of all “necessary” and “advisable” school districts and outlining the ways in which a union school district promotes the State policy set forth in section 701 of this chapter. The study committee shall also prepare proposed articles of agreement that, if approved pursuant to the provisions of this chapter, shall serve as the operating agreement for the new union school district. At a minimum, articles of agreement shall state:

(1) The name of any school district the study committee considers “necessary” to formation of the proposed union school district.

(2) The name of any school district the study committee considers “advisable” to include in the proposed union school district.

(3) The legal name or temporary legal name by which the union school district shall be known.

(4) The grades, if any, that the proposed union school district will operate and the grades, if any, for which it will pay tuition.

(5) The cost and general location of any proposed new school buildings to be constructed and the cost and general description of any proposed renovations to existing school buildings.

(6) A plan for the first year of the union school district’s operation for transportation of students, assignment of staff, and use of curriculum that is consistent with existing contracts, collective bargaining agreements, and other provisions of law. The board of the union school district, if formed, shall make all subsequent decisions regarding transportation, staff, and curriculum subject to existing contracts, collective bargaining agreements, and other provisions of law.

(7) A list of the indebtedness of each “necessary” and “advisable” district, which the union school district shall assume.

(8) The specific pieces of real property of each “necessary” and “advisable” district that the union school district shall acquire, their valuation, and how the union school district shall pay for them.

(9) Consistent with the proportional representation requirements of the Equal Protection Clause of the U.S. Constitution, the method or methods of apportioning representation on the union school district board as set forth in subsections 711(d) (unified union school district), (e) (union elementary or union high school district), and (f) (weighted voting) of this chapter.

(10) The term of office for each member initially elected to the union school district board, to be arranged so that one-third expire on the day of the second annual meeting of the union school district, one-third on the day of the third annual meeting, and one-third on the day of the fourth annual meeting, or as near to that proportion as possible.

(11) The date on which the proposal to create the union school district and the election of initial union school district board members will be submitted to the voters.

(12) The date on which the union school district will be solely responsible for the education of its resident students in the grades for which it is organized and will begin operating any schools, paying any tuition, and providing educational services.

(13) Whether the election of board members, election of school district officers, votes on the union school district budget, or votes on other public questions, or any two or more of these, shall be by Australian ballot.

(14) Any other matters that the study committee considers pertinent.

(d) No proposal to form a union school district. If a study committee determines that it is inadvisable to propose formation of a union school district, then its members shall vote to dissolve the committee. If the study committee members vote to dissolve, then the chair shall notify the Secretary in writing of the vote.

(e) Dissolution of study committee.

(1) If a study committee proposes formation of a union school district pursuant to subsection (c) of this section, then the committee shall cease to exist when the clerk of each school district voting on a proposal to establish the union school district has certified the results of the vote to the Secretary pursuant to subsection 713(a) of this chapter.

(2) If a study committee determines that it is inadvisable to propose formation of a union school district, then the committee shall cease to exist when the chair notifies the Secretary of the committee’s vote pursuant to subsection (d) of this section.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 709 Review by local school district boards; consideration and approval by State Board of Education

(a) If a study committee determines that it is advisable to propose formation of a union school district, then the committee shall transmit its report and proposed articles of agreement to the school board of each school district that the report identifies as either “necessary” or “advisable” to formation of the proposed union school district. Each board may review the report and proposed articles and may provide its comments to the study committee. The study committee has sole authority to determine the contents of the report and proposed articles and to decide whether to submit them to the State Board under subsection (b) of this section.

(b) If a study committee determines that it is advisable to propose formation of a union school district, then the committee shall transmit the report and proposed articles of agreement to the Secretary, who shall submit them with recommendations to the State Board.

(c)(1) The State Board:

(A) shall consider the study committee’s report and proposed articles of agreement and the Secretary’s recommendations;

(B) shall provide the study committee an opportunity to be heard;

(C) may ask the Secretary or the study committee, or both, to make further investigation and may consider any other information the State Board deems to be pertinent; and

(D) may request that the study committee amend the report or the proposed articles of agreement, or both.

(2) If the State Board finds that formation of the proposed union school district is in the best interests of the State, the students, and the school districts, and aligns with the policy set forth in section 701 of this title, then it shall approve the study committee’s report and proposed articles of agreement, together with any amendments, as the final report and proposed articles of agreement, and shall give notice of its action to the study committee.

(d) The chair of the study committee shall file a copy of the approved final report and proposed articles of agreement with the clerk of each school district identified as “necessary” or “advisable” at least 30 days prior to the vote of the electorate on whether to form the union school district.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 710 Vote to form union school district

Subject to the provisions of subsections 706(c) (proposal to form study committee; existing union school districts) and 708(b) (study committee; necessary and advisable districts) of this chapter, the voters of each school district identified as “necessary” or “advisable” shall vote whether to form the proposed union school district, as follows:

(1) The vote shall be held on the date specified in the final report.

(2) The vote shall be by Australian ballot.

(3) The vote shall be at separate school district meetings held on the same day.

(4) The opportunity for early and absentee voting pursuant to 17 V.S.A. §§ 2531–2550 shall be provided.

(5) The board of each school district voting on the proposal shall warn the vote either as a special meeting of the school district or as part of its annual meeting.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 711 Vote to elect initial members of the union school district board

(a) Election of initial members of union school district board. At the meeting warned to vote on formation of a union school district under section 710 of this chapter, the voters shall also elect the initial members who will serve on the board of the union school district if the voters approve the district’s formation.

(1) The vote to elect the initial members shall be by Australian ballot.

(2) The opportunity for early and absentee voting pursuant to 17 V.S.A. §§ 2531–2550 shall be provided.

(b) Representation and term length. Initial membership on a union school district board shall be pursuant to the method of representation set forth in the articles of agreement, for the terms specified in that document, and pursuant to the provisions of this section and subdivisions 708(c)(9) and (10) (study committee; proposed articles of agreement; apportionment and terms) of this chapter.

(c) Operational definitions. As used in subsections (d) and (e) of this section, any term not defined in section 702 of this chapter shall have its plain meaning, except as provided in this subsection.

(1) If, pursuant to section 425 (other town school district officers) of this title, the voters of a school district have elected a district clerk who is not also the clerk of the town served by the school district, then “town clerk” means the elected clerk of that school district.

(2) Notwithstanding subdivision (1) of this subsection, if a potential forming district is an existing unified union school district, then:

(A) Reference to the voters of the “school district” means the voters of each town within the existing unified union school district, who shall vote at a location in their town of residence that is identified in the warning issued by the existing unified union school district; provided, however, that the total of all votes cast in the towns shall determine the modified at-large and at-large election of initial board members pursuant to subdivisions (d)(2) (proposed unified union district; modified at-large), (d)(3) (proposed union district; at-large), (e)(2) (proposed union elementary or union high school district; modified at-large), and (e)(3) (proposed union elementary or union high school district; at-large) of this section, as well as whether the existing unified union school district approves formation of the new unified union school district.

(B) “Town clerk” means the clerk of each town within the existing unified union school district; provided, however, that the town clerk of each town shall transmit the name of each duly nominated candidate to the clerk of the existing unified union school district, who shall prepare the unified union school district ballot for that town and transmit the ballot to the town clerk to make available to the voters.

(3) Notwithstanding subdivision (1) (clerk of school district) of this subsection, if a town is a member of both a union elementary school district and a union high school district, is not independently organized as a district that is responsible for the education of students in any grade, and does not have a town school district board, then:

(A) reference to the voters of the “school district” means the voters of the town that is the member of both existing union school districts, who shall vote at a location in their town of residence that is identified in the warning issued by:

(i) the existing union elementary school district if the voters are voting on a proposed unified union school district or a proposed union elementary school district; or

(ii) the existing union high school district if the voters are voting on a proposed union high school district; and

(B) “town clerk” means the clerk of the town that is a member of both existing union school districts; provided, however, that the town clerk shall transmit the name of each duly nominated candidate to the clerk of the union school district identified in subdivision (A) of this subdivision (3), who shall prepare the ballot for that town and transmit the ballot to the town clerk to make available to the voters.

(d) Proposed unified union school district. Subject to the provisions of subsections 706(c) (existing union school districts) and 708(b) (necessary and advisable school districts) of this chapter, the voters of each school district identified as “necessary” or “advisable” shall vote whether to elect initial board members of a proposed unified union school district, as follows:

(1) Proportional to town population. When representation on the board of a proposed unified union school district is apportioned to each potential town within the proposed district in a number that is closely proportional to the town’s relative population:

(A) Voters of each school district identified as either “necessary” or “advisable” to formation of the proposed unified union school district shall file a petition nominating a candidate for the office of unified union school district board member based on town population. A petition shall be valid only if:

(i) the candidate is a current voter of the town;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the town or one percent of the legal voters in the town, whichever is less;

(iv) the voters file the petition with the town clerk of the town in which the candidate resides not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) The town clerk shall place the name of each duly nominated candidate on the ballot to be presented to the voters of the school district.

(C) The voters of the school district for the town in which the candidate resides shall elect as many board members to the unified union school board as are apportioned based on the town’s population.

(2) Modified at-large model: allocation to town; at-large representation. When representation on the board of a proposed unified union school district is allocated to each potential town within the proposed district, but the allocation is not closely proportional to the town’s relative population and the board member is elected at-large:

(A) Voters of each school district identified as either “necessary” or “advisable” to formation of the proposed unified union school district shall file a petition nominating a candidate for the office of unified union school district board member allocated to the voters’ town. A petition shall be valid only if:

(i) the candidate is a current voter of the town;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the town or one percent of the legal voters in the town, whichever is less;

(iv) the voters file the petition with the town clerk of the town in which the candidate resides not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Upon receipt of a petition for a unified union school district board member allocated to a potential town within the proposed district but to be elected at-large under the modified at-large model, the town clerk shall place the name of the duly nominated candidate on the ballot to be presented to the voters of the school district and shall notify the town clerks preparing the ballots for the voters of each of the other “necessary” school districts and of each “advisable” school district voting on formation of the proposed unified union school district to place the candidate’s name on the ballot presented to the voters in those districts. Alternatively, at their discretion, the town clerks may meet jointly to prepare a uniform ballot.

(C) The voters of each “necessary” school district and of each “advisable” school district voting on formation of the proposed unified union school district shall vote for the board members to be elected at-large under the modified at-large model; provided, however, that ballots shall be included in the calculation of total votes cast pursuant to the provisions of subdivision 714(a)(2) (calculation of votes) of this chapter.

(3) At-large representation. When representation on the board of a proposed unified union school district is not apportioned or allocated to the potential towns within the proposed district pursuant to subdivision (1) (proportional to town population) or (2) (modified at-large) of this subsection and the board member is elected at-large:

(A) The voters of one or more school districts identified as “necessary” to formation of the proposed unified union school district shall file a petition nominating a candidate for the office of unified union school district board member at-large. A petition shall be valid only if:

(i) the candidate is a current voter of a school district identified as “necessary” to the formation of the proposed union school district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in one or more school districts identified as “necessary” to the formation of the proposed unified union school district or one percent of the legal voters residing in the combined “necessary” school districts that would form the proposed unified union school district, whichever is less;

(iv) the voters file the petition with the town clerk in the “necessary” school district in which the candidate resides not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Upon receipt of a petition for a unified union school district board member elected at-large, the town clerk shall place the name of the duly nominated candidate on the ballot to be presented to the voters of the school district and shall notify the town clerks preparing the ballots for the voters of each of the other “necessary” school districts and of each “advisable” school district voting on formation of the proposed unified union school district to place the candidate’s name on the ballot presented to the voters in those districts. Alternatively, at their discretion, the town clerks may meet jointly to prepare a uniform ballot.

(C) The voters of each “necessary” school district and of each “advisable” school district voting on formation of the proposed unified union school district shall vote for the members to be elected at-large; provided, however, that ballots shall be included in the calculation of total votes cast pursuant to the provisions of subdivision 714(a)(2) (calculation of votes) of this chapter.

(e) Proposed union elementary or union high school district. Subject to the provisions of subsections 706(c) (existing union school districts) and 708(b) (necessary and advisable school districts) of this chapter, the voters of each school district identified as “necessary” or “advisable” shall vote whether to elect initial board members of the proposed union school district, as follows:

(1) Proportional to town population. When representation on the board of a proposed union elementary or union high school district is apportioned to each potential member district of the proposed district in a number that is closely proportional to the potential member district’s relative population:

(A) Voters of each school district identified as either “necessary” or “advisable” to formation of the proposed union school district shall file a petition nominating a candidate for the office of union school district board member representing the potential member district. A petition shall be valid only if:

(i) the candidate is a current voter of the potential member district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the potential member district or one percent of the legal voters in the district, whichever is less;

(iv) the petition is filed with the town clerk not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) The town clerk shall place the name of each duly nominated candidate on the ballot to be presented to the voters of the potential member district.

(C) The voters of the district shall elect as many board members as are apportioned to the potential member district based on population.

(2) Modified at-large model: allocation to town; at-large representation. When representation on the board of a proposed union elementary or union high school district is allocated to each potential member district, but the allocation is not closely proportional to the potential member district’s relative population and the board member is elected at-large:

(A) Voters of each school district identified as either “necessary” or “advisable” to formation of the proposed union school district shall file a petition nominating a candidate for the office of union school district board member allocated to the potential member district. A petition shall be valid only if:

(i) the candidate is a current voter of the potential member district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the potential member district or one percent of the legal voters in the district, whichever is less;

(iv) the petition is filed with the town clerk of the school district in which the candidate resides not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Upon receipt of a petition for union school district board member allocated to a potential member district but to be elected at-large under the modified at-large mode, the town clerk shall place the name of the duly nominated candidate on the ballot to be presented to the voters of the potential member district and shall notify the town clerks preparing the ballots for the voters of each of the other “necessary” school districts and of each “advisable” school district voting on formation of the proposed union school district to place the candidate’s name on the ballot presented to the voters in those districts. Alternatively, at their discretion, the town clerks may meet jointly to prepare a uniform ballot.

(C) The voters of each “necessary” school district and of each “advisable” school district voting on formation of the proposed unified union school district shall vote for the board members to be elected at-large under the modified at-large model; provided, however, that ballots shall be included in the calculation of total votes cast pursuant to the provisions of subdivision 714(a)(2) (calculation of votes) of this chapter.

(3) At-large representation. When representation on the board of a proposed union elementary or union high school district board is not apportioned or allocated to the potential member districts pursuant to subdivision (1) (proportional to town population) or (2) (modified at large) of this subsection and the board member is elected at-large:

(A) The voters of one or more school districts identified as “necessary” to the formation of the proposed union school district shall file a petition nominating a candidate for the office of union school district board member at-large. A petition shall be valid only if:

(i) the candidate is a current voter of a school district identified as “necessary” to the formation of the proposed union school district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in one or more school districts identified as “necessary” to the formation of the proposed union school district or one percent of the legal voters residing in the combined “necessary” school districts that would form the proposed union school district, whichever is less;

(iv) the petition is filed with the town clerk in the “necessary” school district in which the candidate resides not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Upon receipt of a petition for a union school district board member to be elected at-large, the town clerk shall place the name of the duly nominated candidate on the ballot to be presented to the voters of the school district and shall notify the town clerks preparing the ballots for the voters of each of the other “necessary” school districts and of each “advisable” school district voting on formation of the proposed union school district to place the candidate’s name on the ballot presented to the voters in those districts. Alternatively, at their discretion, the town clerks may meet jointly to prepare a uniform ballot.

(C) The voters of each “necessary” school district and of each “advisable” school district voting on formation of the proposed union school district shall vote for the board members to be elected at-large; provided, however, that ballots shall be included in the calculation of total votes cast pursuant to the provisions of subdivision 714(a)(2) (calculation of votes) of this chapter.

(f) Weighted voting. If representation on a union school district board is apportioned based upon population pursuant to subdivision (d)(1) or (e)(1) of this section, then the union school district may achieve proportionality through a system of weighted voting.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022; amended 2023, No. 66, § 9, eff. July 1, 2023.)

§ 712 Contents of warning on votes to establish the union school district and elect the initial members of the union school district board

The warning for each school district meeting to vote on formation of a union school district shall contain two articles in substantially the following form. The language used in Article 1 shall be the same for each “necessary” and “advisable” district voting on formation of the new district. Article II of the warning shall not include names of candidates for the union school district board.

WARNING

The voters of the _______________________________________________________________________ School District are hereby notified and warned to meet at _____________________ on the ___________ day of _____________________ , 20___________ , to vote by Australian ballot between the hours of _____________________ , at which time the polls will open, and _____________________ , at which time the polls will close, upon the following articles of business:

Article I. FORMATION OF UNION SCHOOL DISTRICT

Shall the _______________________________________________________________________ School District, which the proposed articles of agreement have identified as [“necessary” or “advisable”] to the formation of the proposed union school district, join with the school district[s] of _______________________________________ and _______________________________________ , which are identified as “necessary” to formation, and potentially the school district[s] of _______________________________________ and _______________________________________ , which are identified as “advisable” to formation, for the purpose of forming a union school district, as provided in Title 16, Vermont Statutes Annotated, upon the following conditions and agreements:

(a) Grades. The union school district shall be organized to provide for the education of resident students in grades ___________ through ___________ and shall assume full and sole responsibility therefor on July 1, 20___________ .

(b) Operation of schools. The union school district shall operate and manage one or more schools offering instruction in grades ___________ through ___________ . [Amend as necessary if the district will pay tuition for any or all grades for which it is organized.]

(c) Union school district board. [State method by which representation of each member of the union school board is to be determined pursuant to section 711 (vote to elect initial members) of this chapter.]

(d) Assumption of debts and ownership of school property. The union school district shall assume the indebtedness of forming districts, acquire the school properties of the forming districts, and pay for them, all as specified in the final report and proposed articles of agreement.

(e) Final report. The provisions of the final report and proposed articles of agreement approved by the State Board of Education on the ___________ day of _____________________ , 20___________ , which is on file in the office of the clerk of each school district named in this warning, shall govern the union school district.

Article II. ELECTION OF INITIAL MEMBERS OF THE UNION SCHOOL DISTRICT BOARD

To elect a total of _____________________ (_) member(s) to serve as initial members of the proposed union school district board for the terms established in the final report and proposed articles of agreement: [Amend as necessary to reflect method for determining school board membership pursuant to section 711 (vote to elect initial members) of this chapter.]

(a) ___________ [Insert number] Board Member[s] to serve until the second annual meeting of the union school district, in 20___________ .

(b) ___________ [Insert number] Board Member[s] to serve until the third annual meeting of the union school district, in 20___________ .

(c) ___________ [Insert number] Board Member[s] to serve until the fourth annual meeting of the union school district, in 20___________ .

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 713 Certification of votes; designation of district as union school district; recording by Secretary of State

(a) Within 45 days after the vote or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of each school district voting on the proposal to form a union school district shall certify the results of that vote to the Secretary of Education. The clerk shall submit the certification regardless of whether the district voters approved the proposed formation of a union school district.

(b) If the voters voting in each school district identified as “necessary” to formation of the proposed union school district vote to form the district, then the “necessary” school districts constitute a union school district, together with any school district designated as “advisable” that votes to form the proposed union school district.

(c) If the voters approve formation of a union school district pursuant to subsection (b) of this section, then upon receiving the certification of each clerk pursuant to subsection (a) of this section, but not sooner than 30 days after the initial vote, the Secretary shall designate the newly formed district as a union school district. The Secretary shall certify that designation and send the certification together with the clerks’ certifications to the Secretary of State, who shall record the certification.

(d) When the Secretary of State records the certification of the Secretary of Education, the union school district shall be a body politic and corporate with the powers incident to a municipal corporation, shall be known by the name or number given in the recorded certification, by that name or number may sue and be sued, and may hold and convey real and personal property for the use of the union school district. The recorded certification shall be notice to all parties of the formation of the union school district with all the powers incident to such a district as provided in this title.

(e) The Secretary of State shall file a certified copy of the recorded certification with the clerk of each member district of a new union elementary or union high school district and with the town clerk of each town within a new unified union school district. The Secretary of State shall file the certified copies not later than 14 days after the date on which the Secretary of Education certifies the existence of the union school district to the Secretary of State. Filing a certified copy with each clerk shall be prima facie evidence of full compliance with the requirements for the formation of a union school district as set forth in this subchapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 714 Initial members of union school district board; tallying of at-large votes; oath of office and assumption of duties

(a) Tallying of at-large votes for initial members of board. If the voters have elected some or all of the initial members of the union school district board under either model involving at-large voting as set forth in subdivision 711(d)(2) (proposed unified union school district; modified at-large), (d)(3) (proposed unified union school district; at-large), (e)(2) (proposed union elementary or union high school district; modified at-large), or (e)(3) (proposed union elementary or union high school district; at-large) of this chapter, then the total votes cast for each of the at-large candidates shall be calculated as follows:

(1) Within seven days after the vote, the clerk of each school district voting on the proposal to form a union school district shall transmit electronically to the Secretary of Education the total number of votes cast in that school district for each at-large candidate.

(2) The Secretary shall calculate the total votes cast for each candidate and transmit those calculations to the clerks for verification. Ballots cast by the voters of any “advisable” district that does not approve the proposal to form a new union school district shall not be included in the calculation.

(3) When each clerk has verified the calculations, the Secretary shall prepare and execute a certification of the votes cast for each candidate.

(b) Notification. If the voters approve formation of a new union school district, then within 30–45 days after the vote or 15 days after a vote to reconsider the original vote to form the district, whichever is later, the notification of the election of initial board members shall be sent to the Secretary of State as follows:

(1) The clerk of each forming district shall transmit the names of board members elected in a manner that is proportional to town population as set forth in subdivision 711(d)(1) (proposed unified union district; proportional to town population) or (e)(1) (proposed union elementary or union high school district; proportional to town population) of this chapter.

(2) The Secretary of Education shall transmit the names of board members elected under either model involving at-large voting.

(c) Oath of office; assumption of duties; election of chair and clerk. The superintendent of the supervisory union serving the new union school district shall cause the initial board members to be sworn in. Although the swearing-in may occur prior to the organizational meeting required by section 715 of this chapter, it shall not occur before the Secretary of State files the certified copy of the recorded certification with each clerk pursuant to subsection 713(e) of this chapter. The initial board members shall assume office upon being sworn in and shall meet to elect one of their number to serve as the board chair and one other of its number to serve as the board clerk, and to transact any other business within its jurisdiction; provided, however, such meeting shall not occur prior to the organizational meeting required by section 715 of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 715 Organizational meeting; notice; business to be transacted

(a) Meeting. The union school district shall hold an organizational meeting within 60 days after the Secretary of State files the certified copy of the recorded certification with each clerk pursuant to subsection 713(e) of this chapter.

(b) Notice.

(1) The Secretary of Education shall prepare and execute a warning for the organizational meeting. The warning shall give notice of the day, hour, and location of the meeting and shall itemize the business to be transacted.

(2) The Secretary of Education shall transmit the signed warning to the superintendent, who shall post the warning in at least one public place in each town within the union school district and shall cause the warning to be published once in a newspaper of general circulation in the towns within the union school district. Posting and publication shall be made not more than 40 days nor less than 30 days before the date of the meeting.

(3) The union school district shall bear the cost of posting and publishing the warning.

(c) Business to be transacted.

(1) The Secretary or a person designated by the Secretary shall call the organizational meeting to order and the registered voters shall consider the following items of business:

(A) Elect a temporary presiding officer and a temporary clerk of the union school district from among the voters present at the organizational meeting.

(B) Adopt Robert’s or other rules of order, which shall govern the parliamentary procedures of the organizational meeting and all subsequent meetings of the union school district.

(C) Elect a moderator of the union school district from among the voters.

(D) Elect a clerk of the union school district from among the voters or vote to authorize the school board to appoint a clerk of the union school district from among the voters.

(E) Elect a treasurer of the union school district or vote to authorize the school board to appoint a treasurer of the union school district. The treasurer may also be the supervisory union treasurer and need not be a resident of the union school district.

(F) Determine the date and location of the union school district’s annual meeting, which shall be not earlier than February 1 nor later than June 1, if not previously determined by the voter-approved articles of agreement.

(G) Determine whether compensation shall be paid to the moderator, clerk, and treasurer of the union school district elected at the organizational meeting and at subsequent annual meetings of the union school district and, if so, the amount to be paid to them.

(H) Determine whether compensation shall be paid to members of the union school district board and, if so, the amount to be paid to them.

(I) Establish provisions for payment by the union school district of any expense incurred or to be incurred by or on behalf of the district for the period between the date on which the voters approved formation of the union school district and the first annual meeting of the union district.

(J) Determine whether to authorize the initial board of the union school district to borrow money pending receipt of payments from the Education Fund by the issuance of its note payable not later than one year from the date of the note. Regardless of whether the voters provide this authorization, the initial board is authorized to borrow sufficient funds to meet pending obligations until the voters approve a budget for the initial year of operation pursuant to subdivision 716(b)(3) of this chapter.

(K) Transact any other business, the subject matter of which has been included in the warning, that the voters have power to transact at any annual or special meeting and transact any nonbinding business that may legally come before the voters.

(2) When there is only one nominee for temporary presiding officer, temporary clerk, moderator, district clerk, or district treasurer, the voters may, by acclamation, instruct an officer to elect the nominee by casting one ballot, and upon the ballot being cast, the nominee shall be legally elected and shall thereupon be sworn.

(3) The elected officers listed in subdivisions (1)(A) (temporary presiding officer and temporary clerk), (C) (moderator of the union school district), (D) (clerk of the union school district), and (E) (treasurer of the union school district) of this subsection shall be sworn in before entering upon the duties of their offices and a record made by the district clerk. They shall assume office upon being sworn in. The officers listed in subdivisions (1)(C), (D), and (E) of this subsection shall serve terms as set forth in section 735 (unified union school districts; officers) or 753 (union elementary and union high school district; officers) of this chapter unless the voters extend the term length up to three years.

(4) Any member of the union school district board not sworn in before the organizational meeting pursuant to section 714 of this chapter may be sworn in at or after the organizational meeting.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 716 Transition to full operations

(a) Operational date. The operational date of a union school district is the July 1 next following the date on which the voters vote to approve formation of the district, unless the voter-approved articles of agreement establish a different date.

(b) Roles and authority during transitional period. During the transitional period:

(1) The forming districts, through their boards, shall continue to be responsible for the education of their respective resident students.

(2) The board of the new union school district shall develop school district policies; adopt curriculum, educational programs, assessment measures, and reporting procedures; negotiate and enter into contractual agreements; negotiate and enter into collective bargaining agreements; set the school calendar for the fiscal year that begins on the operational date; prepare and present to the voters the proposed budget for the fiscal year that begins on the operational date; prepare for the annual and any special meetings of the new union school district that may occur during the transitional period; and transact any other lawful business coming before it.

(3) During the transitional period and continuing until the voters approve a budget for the initial fiscal year of operation, the board of the new union school district shall have the authority to borrow sufficient funds to meet pending obligations. The board shall vote whether to include the total sum borrowed under this subsection as education spending in the board’s proposed budget for the initial fiscal year or to treat the sum as a deficit pursuant to 24 V.S.A. § 1523(b) (municipal and county government; duties of selectboards as to a deficit).

(c) Assets.

(1) Definition. For purposes of this subsection, the “assets” of a forming district shall include all real and personal property, operating fund accounts, special fund accounts, trust fund accounts, accounts receivable, and any other property to which the forming district holds title or over which it has control.

(2) Transfer and acquisition of title. On or before the operational date, the forming districts shall transfer and the union school district shall acquire ownership of all assets of the forming districts that are owned by the forming districts on or before the June 30 immediately preceding the operational date, unless the voter-approved articles of agreement explicitly provide for an alternative disposition of a specific asset. The transfer of an asset shall be subject to all encumbrances and conditions of record, unless the voter-approved articles of agreement explicitly provide otherwise.

(3) Prohibition. A forming district shall not transfer ownership of an asset to any entity other than the union school district between the date on which the vote occurs pursuant to section 710 (vote to form union school district) of this chapter and the operational date unless explicitly authorized in the voter-approved articles of agreement or approved by the voters of the union school district during the transitional period.

(4) Trust funds. A union school district shall hold and apply all trust funds transferred to it by a forming district as the terms of the trust indicate. If the trust allows, a union school district may use the funds to benefit union school district students who reside, or buildings that are located, outside the geographical boundaries of the forming district that originally held the trust.

(5) Reserve funds. A union school district shall hold and apply all reserve funds transferred to it by a forming district pursuant to the conditions imposed prior to the date on which the forming district voted to approve formation of the union school district.

(d) Liabilities.

(1) Definition. For purposes of this subsection, the “liabilities” of a forming district shall include all contractual obligations, all indebtedness including principal and interest, and any other legal commitment of a forming district.

(2) Transfer and assumption of liabilities. On or before the operational date, the forming districts shall transfer and the union school district shall assume all liabilities of the forming districts that exist on the June 30 immediately preceding the operational date, unless the voter-approved articles of agreement explicitly provide otherwise.

(3) Prohibition. Notwithstanding the provisions of subdivision (2) of this subsection (d), a union school district shall not assume liabilities that a forming district incurs between the date on which the vote occurs pursuant to section 710 (vote to form union school district) of this chapter and the operational date unless explicitly authorized in the voter-approved articles of agreement or approved by the union school district board during the transitional period; provided, however, that a union school district shall in all cases assume the contractual obligations of the member districts regarding each collective bargaining agreement or other employment contract entered into during the transitional period until the agreement’s or contract’s expiration.

(e) Unpaid expenses. At the district’s first annual meeting following assumption of full operations or at a later meeting as necessary, the voters of a new union school district shall vote a sum sufficient to pay any unpaid balance of expenses, as defined in subdivision 715(c)(1)(H) of this chapter, that was incurred by or on behalf of the union school district during the transitional period.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 717 Dissolution, reorganization, and discontinuation of forming districts

(a) Unified union school district; dissolution of forming districts. On its operational date, a unified union school district shall supplant all forming districts and the forming districts shall cease to exist; provided, however, that if the voter-approved articles of agreement explicitly provide for it, then the supplanted forming districts and their boards may continue to exist for up to six months after the operational date for the sole purpose of completing any outstanding business that cannot legally be performed by the new unified union school district.

(b) Union Elementary and Union High School Districts.

(1) Reorganization of forming districts. On its operational date, a union elementary or union high school district shall supplant each forming district for the grades for which the union elementary or union high school district is organized (the supplanted grades). Each forming district shall cease to be organized to provide for education in the supplanted grades but shall continue to be responsible for the other grades for which it is organized; provided, however, that if the voter-approved articles of agreement explicitly provide for it, then the forming districts and their boards may continue to exist for the supplanted grades for up to six months after the operational date for the sole purpose of completing any outstanding business that cannot legally be performed by the new union elementary or union high school district.

(2) Dissolution of forming districts. If a forming district is organized to provide for education solely in the grades for which the new union elementary or union high school district is organized and the forming district is a member district of another union school district for all other grades, prekindergarten through grade 12, then the forming district shall cease all educational operations on the new union district’s operational date, the new union school district shall assume all powers and responsibilities of the forming district, and the forming district shall cease to exist; provided, however, that if the voter-approved articles of agreement explicitly provide for it, then the forming district and its board may continue to operate for up to six months after the operational date for the sole purpose of completing any outstanding business that cannot legally be performed by the new union elementary or union high school district.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 718 Transfer of real property to town in which it is located

If the original voter-approved articles of agreement require sale of real property to the town in which the property is located and the sale is scheduled to occur after the operational date, or if after the operational date and after completing any statutory and contractual prerequisites the union school district offers to sell any of its real property to the town in which the property is located, then the town may assume title to the real property for a price that is less than the fair market value only as follows:

(1) The conveyance to the town shall be made subject to all encumbrances of record, the assumption or payment of all outstanding bonds and notes, and the repayment of any school construction aid or grants that may be required by law if any such obligation was incurred before the operational date.

(2) The conveyance to the town shall be conditioned upon the town owning and using the real property for community and public purposes for a minimum of five years.

(3) If the town sells the real property prior to five years of ownership, then the town shall compensate the union school district for all capital improvements and renovations initiated after the operational date and prior to the sale to the town.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 719 Supervisory union; supervisory district

(a) The State Board shall assign each union school district formed under this chapter to a supervisory union for administrative, educational, and planning services, effective on the day on which the union school district becomes a body politic and corporate pursuant to subsection 713(d) (Secretary of State records the certification of the Secretary of Education) of this chapter.

(b) If a union school district formed under this chapter is a unified union school district, then the State Board may designate it as a supervisory district pursuant to the provisions of this title, to be effective not earlier than the operational date of the unified union school district.

(c) If a supervisory union includes at least one district that is a unified union school district, then the State Board, on its own initiative or at the request of the board of the supervisory union or the board of one or more districts in the supervisory union, may at any time, adjust the supervisory union board representation required by section 266 of this title to more fairly and accurately reflect the relative number of students for which each district is responsible and the grades for which the district operates a school or schools.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 721 Joining an existing union school district

(a) Action initiated by district outside the union school district.

(1) After preliminary study, if the board of a school district determines that it would be advisable to join an existing union school district, then the board of the interested school district shall request approval of the State Board to pursue this possibility.

(2) If the State Board determines that it is in the best interests of the State, the students, and the districts involved and aligns with the policy set- forth in section 701 of this title for the interested school district to join the existing union school district, then at a meeting of the interested school district warned for the purpose, the voters shall vote whether to apply to the existing union school district for admission.

(3) If the voters of the interested school district approve the proposal to apply to the union school district for admission, then the clerk of the interested school district shall certify the results of the vote to the Secretary and to the clerk of the union school district.

(4) If the voters of the union school district approve the application of the school district within two years after the vote in subdivision (2) of this subsection, then the clerk of the union school district shall certify the results of the vote to the Secretary.

(b) Action initiated by union school district.

(1) After preliminary study, if the board of a union school district determines that it would be advisable to enlarge the district, then the board of the union school district shall submit a plan to the State Board requesting approval to incorporate a distinct school district into the union school district.

(2) If the State Board determines that it is in the best interests of the State, the students, and the districts involved and aligns with the policy set- forth in section 701 of this title for the school district to join the existing union school district, then at a union school district meeting warned for the purpose, the voters shall vote whether to enlarge the union school district to include the school district.

(3) If the voters of the union school district approve the proposal to include the school district, then the clerk of the union school district shall certify the results of that vote to the Secretary and to the clerk of the school district.

(4) If the voters of the school district approve the offer to join the union school district within two years after the vote in subdivision (2) of this subsection, then the clerk of the school district shall certify the results of the vote to the Secretary.

(c) Certification; Secretary of State. Upon receipt of the clerk’s certification pursuant to subdivision (a)(4) (school district application approval) or (b)(5) (school district approval of offer to join the union school district) of this section, the Secretary of Education shall designate the existing union school district to be enlarged pursuant to the votes and shall certify the enlargement to the Secretary of State. When the Secretary of State records the certification of the Secretary of Education, the union school district shall be enlarged accordingly, although the union school district and the school district that will join it may decide in advance of the votes that the enlarged union school district shall have a later operational date. The Secretary of State shall file a certified copy of the recorded certification with the clerks of the union school district and of the district that is joining it. The Secretary of State shall file the certified copies not later than 14 days after the date the Secretary of Education certifies the designation to the Secretary of State. Filing a certified copy with each clerk shall be prima facie evidence of full compliance with the requirements for enlarging an existing union school district as set forth in this section.

(d) Powers and responsibilities. A union school district enlarged pursuant to this section shall have all the powers and responsibilities given to a union school district by this title. Unless otherwise approved by the voters of the union school district and the school district that will join it, if the operational date is delayed pursuant to an agreement under subsection (c) of this section, then the joining school district shall share in the expenses of the union school district beginning on the date the Secretary of State records the certification of the Secretary of Education.

(e) Australian ballot. All votes of the electorate under this section shall occur by Australian ballot.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 722 Amendments to articles of agreement

(a) The union school district voters. Only the voters of a union school district may amend a specific condition or agreement in the district’s articles of agreement if the condition or agreement was set forth as a distinct subsection in the warning required by section 712 (warning on vote to establish union school district and elect initial members of the board) of this chapter to form the union school district or in a subsequent warning to amend the articles pursuant to this section, which the voters approved.

(b) The union school district board. The board of a union school district may amend a specific condition or agreement in the district’s articles of agreement only if the condition or agreement was not set forth as a distinct subsection in a warning required in subsection (a) of this section, but was instead incorporated into the warning by reference pursuant subsection 712(e) of this chapter (warning on vote to establish union school district and elect initial members of the board), or if the original articles of agreement or voter-approved amendments authorize the board to amend a specific condition or agreement.

(c) Reduction of grades operated. Notwithstanding the provisions of subsection (a) (union school district voters) of this section, the voters shall not vote whether to reduce the grades that the union school district operates, and to begin paying tuition for those grades, unless the State Board finds it is in the best interests of the State, the students, and the districts involved and aligns with the policy set forth in section 701 of this title and gives prior approval to the proposed amendment.

(d) Number of board members. Notwithstanding the provisions of subsections (a) (union school district voters) and (b) (union school district board) of this section, if membership on a union school district board is proportional to town population as set forth in subdivisions 711(d)(1) (proposed unified union school district) and (e)(1) (proposed union elementary or union high school district) of this chapter, and if the district’s articles of agreement direct the board to adjust board membership when necessary to conform to each new decennial census, then the board shall amend the articles to adjust the apportionment of board seats without presenting the amendment to the voters for approval.

(e) Districts created by State Board order. Notwithstanding the provisions of subsections (a) (union school district voters) and (b) (union school district board) of this section, the authority to amend the articles governing any union school district formed by the State Board’s Final Report and Order issued on November 30, 2018 pursuant to 2015 Acts and Resolves No. 46, as amended, vests either with the electorate or the board pursuant to the provisions of Article 14, as that article was issued by the State Board or subsequently amended by the voters of the union school district.

(f) Process. A vote by the voters of a union school district to amend the articles of agreement shall be by Australian ballot and shall proceed pursuant to sections 737 (warnings of unified union school district meetings) and 739–742 (vote by Australian ballot) of this chapter for unified union school districts and sections 755 (warnings of union elementary and union high school district meetings) and 757–759 (vote by Australian ballot) for union elementary and union high school districts. The warning shall contain each proposed amendment as a distinct question to be determined separately. The provisions of this subsection shall not apply to any issue to the extent that a different section of law provides a specific amendment procedure.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 723 Decision to vote by Australian ballot

(a) If a union school district’s articles of agreement do not provide that the election of board members or district officers, budget votes, or votes on other public questions shall proceed by Australian ballot, then the voters of a union school district may vote to do so at any annual or special meeting of the union school district where the question has been duly warned.

(b) Any category of vote to be taken by Australian ballot shall proceed in this manner in all towns within or member districts of a union school district.

(c) If voting in a unified union school district proceeds by Australian ballot, then the provisions of sections 739–742 (vote by Australian ballot) of this chapter shall apply to all votes taken by Australian ballot.

(d) If voting in a union elementary or union high school district proceeds by Australian ballot, then the voters shall also determine whether the ballots shall be commingled prior to counting total votes cast by Australian ballot in the union district.

(1) If the voters determine that the ballots shall not be commingled for counting in this manner, then the board of civil authority of each town within the union elementary or union high school district shall count the ballots cast in that town and report that town’s results to the clerk of the union elementary or union high school district, who shall calculate the total votes cast within the district and report the total result to the public.

(2) If the voters determine that the ballots shall be commingled for counting, then the ballots shall be deposited in separate ballot boxes at each polling location and the provisions of sections 757–759 (vote by Australian ballot) of this chapter shall apply.

(e) The vote on whether to proceed by Australian ballot shall be taken by paper ballot.

(f) Unless clearly inconsistent, the provisions of 17 V.S.A. chapter 55 shall apply to actions taken under this section.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 724 Withdrawal from or dissolution of a unified union school district

(a) Definition. As used in this section, “petitioning town” means the town within a unified union school district that seeks to withdraw from the union district pursuant to the provisions of this section.

(b) Withdrawal study committee.

(1) To initiate the process set forth in this section, the voters residing in the petitioning town shall submit petitions to the clerk of the unified union school district indicating the petitioners’ desire to withdraw the petitioning town from the union district. Individual petitions shall be signed by at least five percent of the voters residing in each of the towns within the union school district, with each town having its own petition. The petitioners shall submit each petition to that town’s town clerk for verification of the voting registration status of the signors. On a form created by the Secretary of State’s Office, and appended to each petition, shall be the names of three voters residing in the petitioning town to serve on a withdrawal study committee and a signed statement by each of the three named voters consenting to serve. Once each petition has been verified by the subject town clerk, the petitioners shall submit the petitions to the clerk of the unified union school district.

(2) Within 30 days after receiving the petition, the board of the union district shall recognize the creation of the withdrawal study committee and shall appoint a board subcommittee to serve as a liaison between the board and the withdrawal study committee and to represent the interests of the union district.

(3) Within 30 days after the board’s appointment of the liaison subcommittee, the superintendent of the union district shall convene the first formal meeting of the withdrawal study committee. The study committee shall elect one committee member to serve as chair.

(4) Before beginning any analysis under subsection (c) of this section or seeking technical or analytical services from the union district staff or supervisory union staff, or both, the withdrawal study committee shall obtain a letter of commitment from a supervisory union board to explore the provision of supervisory union services if withdrawal is ultimately approved.

(5) The withdrawal study committee is a public body pursuant to 1 V.S.A. § 310(4) and is subject to the requirements of chapter 5, subchapter 2 of that title.

(c) Analysis. The withdrawal study committee shall evaluate the strengths and challenges of the current union district structure and consider the ways in which the union district promotes or fails to promote the State policy set forth in section 701 of this chapter. At a minimum, the withdrawal study committee shall evaluate:

(1) the educational advantages and disadvantages likely to result from the proposed withdrawal of the petitioning town from the union district:

(A) on the students residing in the proposed new school district; and

(B) on the students remaining in the union district if withdrawal is approved;

(2) the educational advantages and disadvantages likely to result from the continued inclusion of the petitioning town as a town within the union district:

(A) on the students residing in the petitioning town; and

(B) on the students residing in the other towns within the union district;

(3) the financial advantages and disadvantages likely to result from the proposed withdrawal of the petitioning town from the union district:

(A) on the taxpayers residing in the proposed new school district; and

(B) on the taxpayers remaining in the union district if withdrawal is approved;

(4) the financial advantages and disadvantages likely to result from the continued inclusion of the petitioning town as a town within the union district:

(A) on the taxpayers residing in the petitioning town; and

(B) on the taxpayers residing in the other towns within the union district;

(5) the likely operational and financial viability and sustainability of:

(A) the proposed new school district; and

(B) the union district if withdrawal is approved;

(6) any other advantages and disadvantages of withdrawal, including any advantages and disadvantages to the students and taxpayers of the region and the State; and

(7) the potential source of supervisory union services for the proposed new school district, including discussions with the board of any supervisory union to which the report of the withdrawal study committee might propose assignment.

(d) Report, including a plan for withdrawal; decision not to prepare report.

(1) Report supporting withdrawal.

(A) If, after conducting the analysis required by subsection (c) of this section, the withdrawal study committee votes to advance the withdrawal process as further outlined in this section, then the committee shall prepare a report, which it shall deliver electronically to the union district board and which the superintendent shall publish on the district’s website.

(B) At a minimum, the report shall include:

(i) the analysis conducted pursuant to subsection (c) of this section, describing the ways in which the data and analysis:

(I) support withdrawal; and

(II) do not support the continuation of the union district in its current configuration;

(ii) the proposed financial terms of withdrawal, including the proposed ownership of buildings and other assets and the proposed responsibility for financial and other contractual obligations, including debts;

(iii) a plan, including a detailed timeline, for the actions the proposed new school district would take to ensure that, on a proposed operational date, it could provide for the education of its students in prekindergarten through grade 12 by operating all grades, tuitioning all grades, or operating some grades and tuitioning the remainder, in a manner that will meet educational quality standards as required by section 165 of this title, and including, if applicable, the process by which the proposed new school district would explore formation of a new union school district with one or more other school districts in the region and would integrate or condition any votes to withdraw with votes on formation of a new union district; and

(iv) a proposal, including analysis, for the potential source of supervisory union services for the proposed new school district, including, if applicable to the proposal:

(I) a recommendation of one or more potential supervisory unions to which the State Board could assign the proposed new school district; and

(II) a statement from the board of the potential supervisory union or unions regarding the ability and willingness to accept the proposed new school district as a member district.

(C) Within 45 days following receipt of the withdrawal study committee report, the union district board shall invite the members of the withdrawal study committee to attend a regularly scheduled meeting of the board to present the contents of its report and to answer any questions posed by the board. The board shall also invite the members of the liaison subcommittee to share any analysis and conclusions at the meeting. The withdrawal study committee has sole authority to determine the contents of its report.

(2) Decision not to propose withdrawal. If, after conducting the analysis required by subsection (c) of this section, the withdrawal study committee votes not to approve advancement of the withdrawal process, then:

(A) the withdrawal study committee shall prepare a brief written statement explaining the reasons underlying the votes supporting and not supporting advancement, which it shall deliver electronically to the union district board and which the superintendent shall publish on the district’s website;

(B) within 45 days following receipt of the withdrawal study committee report, the union district board shall invite the members of the withdrawal study committee to attend a regularly scheduled meeting of the board to present the contents of the written statement and to answer any questions posed by the board; and

(C) the withdrawal study committee shall cease to exist upon adjournment of the union district board’s meeting.

(e) Secretary and State Board.

(1) Secretary. If the study committee voted to proceed pursuant to subdivision (d)(1) of this section, then within 30 days after attending the union district board meeting pursuant to subdivision (d)(1)(C) of this section, it shall deliver its report electronically to the Secretary for review. The liaison subcommittee may also submit a report outlining its analysis and conclusions. The Secretary shall submit the report or reports, with recommendations, to the State Board.

(2) State Board review. The State Board:

(A) shall consider the report or reports and the Secretary’s recommendations;

(B) shall provide representatives of the withdrawal study committee and the liaison subcommittee an opportunity to be heard;

(C) may, in its discretion, take testimony from other individuals and entities;

(D) may ask the Secretary, the withdrawal study committee, or the liaison subcommittee to make further investigation and may consider any other information the State Board deems to be pertinent; and

(E) may request the members of the withdrawal study committee to amend the report.

(3) State Board action.

(A) Advisory opinion with positive recommendation. If the State Board finds that the withdrawal proposal contained in the report, including the most feasible options for the provision of supervisory union services to the proposed new school district, is in the best interests of the State, the region, the students, and the school districts and aligns with the policy set forth in section 701 of this title, then within 90 days after receiving the report of the study committee the State Board shall:

(i) issue an opinion recommending approval of the withdrawal proposal;

(ii) provide a preliminary assessment of most feasible options for the provision of supervisory union services to the proposed new school district if withdrawal is approved by the voters; and

(iii) make any other finding or declaration, and approve any other motion, related and necessary to the withdrawal proposal.

(B) Advisory opinion with negative recommendation. If the State Board finds that the withdrawal proposal contained in the report, including the most feasible options for the provision of supervisory union services to the proposed new school district, is not in the best interests of the State, the region, the students, and the school districts or does not align with the policy set forth in section 701 of this title, or both, then within 90 days after receiving the report of the study committee the State Board shall:

(i) issue an opinion recommending disapproval of the withdrawal proposal, including a written statement detailing the reasons supporting this conclusion;

(ii) provide a preliminary assessment of most feasible options for the provision of supervisory union services to the proposed new school district if withdrawal is approved by the voters; and

(iii) make any other finding or declaration and approve any other motion related and necessary to the withdrawal proposal.

(f) Vote of the electorate.

(1) Vote following positive recommendation of the State Board.

(A) Within 30 days after receipt of the State Board’s written recommendation, the superintendent shall file the withdrawal study committee’s report, the State Board’s written recommendation, and any report of the liaison subcommittee with the clerk of the union district and the town clerk of each town within the union district.

(B) Within 90 days after the clerk of the union district receiving the reports and recommendations described in subdivision (A) of this subsection, the voters of the union district, including those residing in the petitioning town, shall vote whether to approve withdrawal as set forth in the report. The question shall be determined by Australian ballot and shall proceed pursuant to sections 737 (warnings of unified union school district meetings) and 739–741 (vote by Australian ballot) of this chapter. The ballots shall not be commingled.

(C) Withdrawal from the union district shall occur if the question is approved by a majority vote of the union district voters living in each town within the district, including the petitioning town. If a majority of the voters in one or more towns within the union district do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(D) Within 45 days after the vote or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of each town within the union district shall certify the results of the vote to the Secretary of Education, and the Secretary shall advise the State Board of the certified results. Each clerk shall submit the certification regardless of whether the voters in that town approved withdrawal. The withdrawal study committee shall cease to exist when each clerk has submitted a certification to the Secretary.

(2) Vote following negative recommendation of the State Board.

(A) The superintendent shall file the withdrawal study committee’s report, the State Board’s written recommendation, and any report of the liaison subcommittee with the clerk of the union district and with the town clerk of each town within the union district.

(B) The union district voters residing in the petitioning town shall vote whether to withdraw from the union district pursuant to the terms set forth in the report.

(i) The question shall be determined by Australian ballot and shall proceed pursuant to sections 737 (warnings of unified union school district meetings) and 739–741 (vote by Australian ballot) of this chapter.

(ii) The withdrawal proposal shall proceed to a vote in each of the other towns within the union district only if approved by a majority of the union district voters residing in the petitioning town present and voting yes or no on the warned question. If a majority of the voters in the petitioning town do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(C) Within 45 days after the vote in subdivision (B) of this subdivision (f)(2) or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of the petitioning town shall certify the results of the vote to the Secretary of State who shall record the certificate and give notice of the vote to the clerk of the union district, the clerks of each of the other towns within the union district, and the Secretary of Education. The clerk of the petitioning town shall submit the certification regardless of whether the voters in the petitioning town approved withdrawal. The withdrawal study committee shall cease to exist upon submission of the certification.

(D) If the union district voters residing in the petitioning town approve the withdrawal proposal pursuant to subdivision (B) of this subdivision (f)(2), then, within 90 days after receiving notice of the certification as required in subdivision (C) of this subdivision (f)(2), the voters of the union district residing in each of the other towns shall vote on the same day whether to approve withdrawal of the petitioning town as set forth in the final report.

(i) The question shall be determined by Australian ballot and shall proceed pursuant to sections 737 (warnings of unified union school district meetings) and 739–741 (vote by Australian ballot) of this chapter. The ballots shall not be commingled.

(ii) Withdrawal from the union district shall occur if the question is approved by a majority vote of the union district voters living in each of the other towns within the union district. If a majority of the voters in one or more towns within the union district do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(E) Within 45 days after the vote in subdivision (D) of this subdivision (f)(2) or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of each of the other towns within the union district shall certify the results of the vote to the Secretary of Education, and the Secretary shall advise the State Board of the certified results. Each clerk shall submit the certification regardless of whether the voters in that town approved withdrawal. The withdrawal study committee shall cease to exist when each clerk has submitted a certification to the Secretary.

(g) Election of potential board members. On the day on which they vote whether to approve withdrawal, the union district voters residing in the petitioning town shall also vote for three individual registered voters from the petitioning town to serve as the initial members of the proposed new school district’s board if withdrawal is approved. The nomination and election of the initial members shall proceed pursuant to subdivision 730(a)(1) of this chapter (election of board members under the proportional to town model by Australian ballot). The term of office for each initial member shall be arranged so that one term expires on the day of the second annual meeting of the proposed new school district, one term expires on the day of the third annual meeting, and one term expires on the day of the fourth annual meeting.

(h) State Board’s duties if withdrawal is approved. If the union district voters approve withdrawal pursuant to subsection (f) of this section, then upon receiving notice from the Secretary pursuant to subdivision (f)(1)(D) or (f)(2)(E) of this section, the State Board shall:

(1) Declare the withdrawal approved as of the date of the Board’s meeting; provided, however, that withdrawal shall not be final until the date identified in the voter-approved proposal of withdrawal.

(2) Declare the creation and existence of the new school district, effective on the date of the Board’s declaration; provided, however, that:

(A) the new school district shall assume full and sole responsibility for the education of its resident students on the date identified in the voter-approved proposal of withdrawal; and

(B) until the identified operational date, the new school district shall exist for the sole purposes of:

(i) convening an organizational meeting of the voters of the new school district to prepare the district to assume its responsibilities;

(ii) organizing the school board of the new school district, which shall be responsible for preparing a proposed budget for the fiscal year beginning on the identified operational date;

(iii) approving the budget of the new school district for the fiscal year beginning on the identified operational date; and

(iv) taking any other actions necessary, as district voters or as a school board, for the new school district to assume full responsibility for providing for the education of the district’s resident students in all grades, prekindergarten through grade 12, on the identified operational date.

(3) Determine or set a schedule for determining the manner in which supervisory union services will be provided to the new school district, to be effective on the district’s identified operational date.

(A) In addition to the considerations set forth in section 261 of this title, when the State Board makes its determination, it shall consider the potential positive and negative consequences on all affected districts and supervisory unions if supervisory union services were provided to the new school district in a manner that required:

(i) a union district serving as its own supervisory district to become a member of a multidistrict supervisory union; or

(ii) a neighboring supervisory union to accept one or more additional districts that the supervisory union testifies it is not able to accommodate.

(B) If assigned to a multidistrict supervisory union, then the board of the new school district may appoint its members to the supervisory union board pursuant to section 266 of this title, where they may participate as nonvoting members of that board until the new school district’s operational date.

(i) Certification; Secretary of State. If the State Board declares the creation and existence of a new school district pursuant to subdivision (h)(2) of this section, then within 30 days following such action the Secretary of Education shall certify the adjustment of the towns within the union district to the Secretary of State. When the Secretary of State records the certification of the Secretary of Education, the towns within the union district shall be adjusted accordingly; provided, however, that the voter-approved proposal of withdrawal shall establish the date on which withdrawal shall be final, the new school district shall assume full and sole responsibility for the education of its resident students, and the union school district shall no longer have responsibility for the education of those students. Not more than 14 days after the date the Secretary of Education certifies the adjustment, the Secretary of State shall file a certified copy of the recorded certification with the clerk of the union district and the clerk for the town in which the new school district is located. Filing a certified copy with the clerks shall be prima facie evidence of full compliance with the requirements for adjusting the union school district by withdrawal as set forth in this section.

(j) Timing of action.

(1) The voters residing in any town within a union district shall not initiate the withdrawal process set forth in this section within the first year after the latter of the operational date of a newly formed union district or, if applicable, the operational date of a union district adjusted pursuant to subsection (i) of this section.

(2) If a petitioning town’s action to withdraw from a union school district is unsuccessful, then the voters residing in that town shall not initiate a new withdrawal action under this section until two years after either a withdrawal study committee votes not to approve advancement of the withdrawal process or the vote by the voters that concluded the initial withdrawal action.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 725 Withdrawal from or dissolution of a union elementary or union high school district

(a) Definitions. As used in this section:

(1) “Petitioning district” means:

(A) a member district of a union elementary or union high school district that seeks to withdraw from the union district pursuant to the provisions of this section; or

(B) a town that is a member of both a union elementary school district and a union high school district, is not independently organized as a district that is responsible for the education of students in any grade, does not have a town school district board, and that seeks to withdraw from a union elementary or union high school district pursuant to the provisions of this section.

(2) “New school district” means the petitioning district once the State Board has declared it to be withdrawn from the union elementary or union high school district.

(b) Withdrawal study committee.

(1) To initiate the process set forth in this section, the board of the petitioning district shall submit a petition to the clerk of the union elementary or union high school district indicating its desire to withdraw the petitioning district from the union district and identifying at least three board members of the petitioning district who will serve on a withdrawal study committee. The board of the petitioning district shall submit the petition to the clerk of the union school district after either a vote by the board of the petitioning district or receipt of individual petitions signed by at least five percent of the voters residing in the petitioning district and five percent of the voters residing in each of the other member districts within the union school district, with each member district having its own petition. The clerk of the petitioning district shall submit each petition to the subject member district’s clerk for verification of the voting registration of the signors. Once each petition has been verified by the subject district clerk, the board of the petitioning district shall append the individual petitions to the withdrawal petition it sends to the clerk of the union district.

(2) To initiate the process set forth in this section if the petitioning district does not have a town school district board, the voters residing in the petitioning district shall submit petitions to the clerk of the unified union school district indicating the petitioners’ desire to withdraw the petitioning district from the union district. Individual petitions shall be signed by at least five percent of the voters residing in the petitioning district and five percent of the voters residing in each of the member districts within the union school district, with each district having its own petition. The petitioning district shall submit each petition to that district’s clerk for verification of the voting registration status of the signors. On a form created by the Secretary of State’s Office, and appended to each petition, shall be the names of three voters residing in the petitioning district to serve on a withdrawal study committee and a signed statement by each of the three named voters consenting to serve. Once each petition has been verified by the subject district clerk, the petitioning district shall submit the petitions to the clerk of the union school district.

(3) Within 30 days after receiving the petition, the board of the union district shall recognize the creation of the withdrawal study committee and shall appoint a board subcommittee to serve as a liaison between the board and the withdrawal study committee and to represent the interests of the union district.

(4) Within 30 days after the board’s appointment of the liaison subcommittee, the superintendent of the union district shall convene the first formal meeting of the withdrawal study committee. The study committee shall elect one committee member to serve as Chair.

(5) Before beginning any analysis under subsection (c) of this section or seeking technical or analytical services from the union district staff or supervisory union staff, or both, the withdrawal study committee shall obtain a letter of commitment from a supervisory union board to explore the provision of supervisory union services if withdrawal is ultimately approved.

(6) The withdrawal study committee is a public body pursuant to 1 V.S.A. § 310(4) and is subject to the requirements of chapter 5, subchapter 2 of that title.

(c) Analysis. The withdrawal study committee shall evaluate the strengths and challenges of the current union district structure and consider the ways in which the union district promotes or fails to promote the State policy set forth in section 701 of this chapter. At a minimum, the withdrawal study committee shall evaluate:

(1) the educational advantages and disadvantages likely to result from the proposed withdrawal of the petitioning district from the union elementary or union high school district:

(A) on the students residing in the proposed new school district; and

(B) on the students remaining in the union district if withdrawal is approved;

(2) the educational advantages and disadvantages likely to result from the continued inclusion of the petitioning district as a member district of the union elementary or union high school district:

(A) on the students residing in the petitioning district; and

(B) on the students residing in the other member districts of the union district;

(3) the financial advantages and disadvantages likely to result from the proposed withdrawal of the petitioning district from the union elementary or union high school district:

(A) on the taxpayers residing in the proposed new school district; and

(B) on the taxpayers remaining in the union district if withdrawal is approved;

(4) the financial advantages and disadvantages likely to result from the continued inclusion of the petitioning district within the union elementary or union high school district:

(A) on the taxpayers residing in the petitioning district; and

(B) on the taxpayers residing in the other member districts within the union district;

(5) the likely operational and financial viability and sustainability of:

(A) the proposed new school district; and

(B) the union elementary or union high school district if withdrawal is approved;

(6) any other advantages and disadvantages of withdrawal, including any advantages and disadvantages to the students and taxpayers of the region and the State; and

(7) the potential source of supervisory union services for the proposed new district, including discussions with the board of any supervisory union to which the report of the withdrawal study committee might propose assignment or the continuation of assignment.

(d) Report, including a plan for withdrawal; decision not to prepare report.

(1) Report supporting withdrawal.

(A) If, after conducting the analysis required by subsection (c) of this section, the withdrawal study committee votes to advance the withdrawal process as further outlined in this section, then the committee shall prepare a report, which it shall deliver electronically to the union district board and which the superintendent shall publish on the district’s website.

(B) At a minimum, the report shall include:

(i) the analysis conducted pursuant to subsection (c) of this section, describing the ways in which the data and analysis:

(I) support withdrawal; and

(II) do not support the continuation of the union elementary or union high school district in its current configuration;

(ii) the proposed financial terms of withdrawal, including the proposed ownership of buildings and other assets and the proposed responsibility for financial and other contractual obligations, including debts;

(iii) a plan, including a detailed timeline, for the actions the proposed new school district would take to ensure that, on the proposed operational date, it could provide for the education of its students in the grades for which the union elementary or union high school district is organized, in a manner that will meet educational quality standards as required by section 165 of this title, and including, if applicable, the process by which the proposed new school district would explore formation of a new union district with one or more other school districts in the region and would integrate or condition any votes to withdraw with votes on formation of a new union district; and

(iv) a proposal, including analysis, for the source of supervisory union services for the proposed new school district.

(C) Within 45 days following receipt of the study committee report, the union elementary or union high school district board shall invite the members of the withdrawal study committee to attend a regularly scheduled meeting of the board to present the contents of its report and to answer any questions posed by the board. The board shall also invite the members of the liaison subcommittee to share any analysis and conclusions at the meeting. The withdrawal study committee has sole authority to determine the contents of its report.

(2) Decision not to propose withdrawal. If, after conducting the analysis required by subsection (c) of this section, the withdrawal study committee votes not to approve advancement of the withdrawal process, then:

(A) the withdrawal study committee shall prepare a brief written statement explaining the reasons underlying the votes supporting and not supporting advancement, which it shall deliver electronically to the union district board and which the superintendent shall publish on the district’s website;

(B) within 45 days following receipt of the study committee report, the union elementary or union high school district board shall invite the members of the withdrawal study committee to attend a regularly scheduled meeting of the board to present the contents of the written statement and to answer any questions posed by the board; and

(C) the withdrawal study committee shall cease to exist upon adjournment of the union elementary or union high school district board’s meeting.

(e) Secretary and State Board.

(1) Secretary. If the study committee voted to proceed pursuant to subdivision (d)(1) of this section, then within 30 days after attending the union district board meeting pursuant to subdivision (d)(1)(C) of this section, it shall deliver its report electronically to the Secretary for review. The liaison subcommittee may also submit a report outlining its analysis and conclusions. The Secretary shall submit the report or reports, with recommendations, to the State Board.

(2) State Board review. The State Board:

(A) shall consider the report or reports and the Secretary’s recommendations;

(B) shall provide representatives of the withdrawal study committee and the liaison subcommittee an opportunity to be heard;

(C) may, in its discretion, take testimony from other individuals and entities;

(D) may ask the Secretary, the withdrawal study committee, or the liaison subcommittee to make further investigation and may consider any other information the State Board deems to be pertinent; and

(E) may request the members of the withdrawal study committee to amend the report.

(3) State Board action.

(A) Advisory opinion with positive recommendation. If the State Board finds that the withdrawal proposal contained in the report is in the best interests of the State, the region, the students, and the school districts, and aligns with the policy set forth in section 701 of this title, then within 90 days after receiving the report of the study committee the State Board shall:

(i) issue an opinion recommending approval of the withdrawal proposal;

(ii) provide a preliminary assessment of the source of supervisory union services to the proposed new school district if withdrawal is approved by the voters; and

(iii) make any other finding or declaration, and approve any other motion, related and necessary to the withdrawal proposal.

(B) Advisory opinion with negative recommendation. If the State Board finds that the withdrawal proposal contained in the report is not in the best interests of the State, the region, the students, and the school districts or does not align with the policy set forth in section 701 of this title, or both, then within 90 days after receiving the report of the study committee, the State Board shall:

(i) issue an opinion recommending disapproval of the withdrawal proposal, including a written statement detailing the reasons supporting this conclusion;

(ii) provide a preliminary assessment of the source supervisory union services to the proposed new school district if withdrawal is approved by the voters; and

(iii) make any other finding or declaration, and approve any other motion, related and necessary to the withdrawal proposal.

(f) Vote of the electorate.

(1) Vote following positive recommendation of the State Board.

(A) Within 30 days after receipt of the State Board’s written recommendation, the superintendent shall file the withdrawal study committee’s report, the State Board’s written recommendation, and any report of the liaison subcommittee with the clerk of the union elementary or union high school district and the district clerk of each of the member districts within the union elementary or union high school district.

(B) Within 90 days after the clerk of the union district receiving the reports and recommendations described in subdivision (A) of this subdivision (f)(1), the voters of the union elementary or union high school district, including those residing in the petitioning district, shall vote whether to approve withdrawal as set forth in the report. The question shall be determined by Australian ballot and shall proceed pursuant to sections 755 (warnings of union elementary and union high school district meetings) and 757–759 (vote by Australian ballot) of this chapter.

(C) Withdrawal from the union elementary or union high school district shall occur if the question is approved by a majority vote of the union district voters living in each of the member districts within the union elementary or union high school district, including in the petitioning district. If a majority of the voters in one or more member districts within the union elementary or union high school district do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(D) Within 45 days after the vote or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of each member district within the union elementary or union high school district shall certify the results of the vote to the Secretary of Education, and the Secretary shall advise the State Board of the certified results. Each clerk shall submit the certification regardless of whether the voters in that district approved withdrawal. The withdrawal study committee shall cease to exist when each clerk has submitted a certification to the Secretary.

(E) If the petitioning district or one of the other member districts does not have a town school district board, the legislative body or appropriate officer of the town shall perform electoral functions, including warning meetings and conducting the voting process, ordinarily performed by and in member districts on behalf of a union school district.

(2) Vote following negative recommendation of the State Board.

(A) The superintendent shall file the withdrawal study committee’s report, the State Board’s written recommendation, and any report of the liaison subcommittee with the clerk of the union elementary or union high school district and the district clerk of each of the member districts within the union elementary or union high school district.

(B) The union district voters residing in the petitioning district shall vote whether to withdraw from the union elementary or union high school district pursuant to the terms set forth in the report.

(i) The question shall be determined by Australian ballot and shall proceed pursuant to sections 755 (warnings of union elementary and union high school district meetings) and 757–759 (vote by Australian ballot) of this chapter.

(ii) The withdrawal proposal shall proceed to a vote in each of the other member districts within the union elementary or union high school district only if approved by a majority of the union district voters residing in the petitioning district present and voting yes or no on the warned question. If a majority of the voters in the petitioning district do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(C) Within 45 days after the vote in subdivision (B) of this subdivision (f)(2) or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of the petitioning district shall certify the results of the vote to the Secretary of State who shall record the certificate and give notice of the vote to the clerk of the union elementary or union high district, the clerks of each of the other member districts within the union district, and the Secretary of Education. The clerk of the petitioning district shall submit the certification regardless of whether the voters in the petitioning district approved withdrawal. The withdrawal study committee shall cease to exist upon submission of the certification.

(D) If the union elementary or union high school district voters residing in the petitioning district approve the withdrawal proposal pursuant to subdivision (B) of this subdivision (f)(2), then, within 90 days after receiving notice of the certification as required in subdivision (C) of this subdivision (f)(2), the voters of the union elementary or union high school district residing in each of the other member districts shall vote on the same day whether to approve withdrawal of the petitioning district as set forth in the final report.

(i) The question shall be determined by Australian ballot and shall proceed pursuant to sections 755 (warnings of union elementary and union high school district meetings) and 757–759 (vote by Australian ballot) of this chapter.

(ii) Withdrawal from the union elementary or union high school district shall occur if the question is approved by a majority vote of the union district voters living in each of the other member districts within the union elementary or union high school district. If a majority of the voters living in one or more member districts within the union district do not vote in favor of withdrawal, then the proposed withdrawal shall not occur.

(E) Within 45 days after the vote in subdivision (D) of this subdivision (f)(2) or 15 days after a vote to reconsider the original vote under 17 V.S.A. § 2661, whichever is later, the clerk of each of the other member districts within the union elementary or union high school district shall certify the results of the vote to the Secretary of Education, and the Secretary shall advise the State Board of the certified results. Each clerk shall submit the certification regardless of whether the voters in that member district approved withdrawal. The withdrawal study committee shall cease to exist when each clerk has submitted a certification to the Secretary.

(F) If the petitioning district or one of the other member districts does not have a town school district board, the legislative body or appropriate officer of the town shall perform electoral functions, including warning meetings and conducting the voting process, ordinarily performed by and in member districts on behalf of a union school district.

(g) Election of potential board members. If the petitioning district does not have a town school district board, on the day on which they vote whether to approve withdrawal, the union district voters residing in the petitioning school district shall also vote for three individual registered voters from the petitioning district to serve as the initial members of the proposed new school district’s board if withdrawal is approved. The nomination and election of the initial members shall proceed pursuant to subdivision 748(a)(1) of this chapter (election of board members under the proportional to town model by Australian ballot). The term of office for each initial member shall be arranged so that one term expires on the day of the second annual meeting of the proposed new school district, one term expires on the day of the third annual meeting, and one term expires on the day of the fourth annual meeting.

(h) State Board’s duties if withdrawal is approved. If the union elementary or union high school district voters approve withdrawal pursuant to subsection (f) of this section, then upon receiving notice from the Secretary pursuant to subdivision (f)(1)(D) or (f)(2)(E) of this section, the State Board shall:

(1) declare the withdrawal approved as of the date of the Board’s meeting; provided, however, that withdrawal shall not be final until the date identified in the voter-approved proposal of withdrawal;

(2) declare it to be the obligation of the new school district to assume responsibility for the education of its residents in the grades for which the union elementary or union high school district was previously responsible, effective on the date of the Board’s declaration; provided, however, that:

(A) the new school district shall assume full and sole responsibility for the education of its resident students in the grades for which the union elementary or union high school district was previously responsible on the date identified in the voter-approved proposal of withdrawal; and

(B) until the identified operational date, the new school district shall exist for the sole purposes of:

(i) providing for the education of its residents in the grades for which it was organized prior to withdrawal;

(ii) convening an organizational meeting of the voters of the new school district to prepare the district to assume its new responsibilities if the petitioning district did not have a town school district board;

(iii) organizing the school board of the new school district if the petitioning district did not have a town school district board;

(iv) preparing a proposed budget for the fiscal year beginning on the identified operational date;

(v) approving the budget of the new school district for the fiscal year beginning on the identified operational date; and

(vi) taking any other actions necessary, as district voters or as a school board, for the new school district to assume full responsibility for providing for the education of the district’s resident students in the grades it is now organized to provide for, on the identified operational date; and

(3) ensure a smooth transition of supervisory services, to be effective on the district’s identified operational date.

(i) Certification; Secretary of State. If the State Board declares it to be the obligation of the new school district pursuant to subdivision (h)(2) of this section to provide for the education of resident students who were formerly the responsibility of the union elementary or union high school district, then within 30 days following such action the Secretary of Education shall certify the adjustment of the member districts within the union elementary or union high school district to the Secretary of State. When the Secretary of State records the certification of the Secretary of Education, the member districts within the union elementary or union high school district shall be adjusted accordingly; provided, however, that the voter-approved proposal of withdrawal shall establish the date on which withdrawal shall be final, the new school district shall assume full and sole responsibility for the education of its residents in the grades for which it is now organized, and the union school district shall no longer have responsibility for the education of those students. Not more than 14 days after the date the Secretary of Education certifies the adjustment, the Secretary of State shall file a certified copy of the recorded certification with the clerk of the union elementary or union school district and the clerk for new school district. Filing a certified copy with the clerks shall be prima facie evidence of full compliance with the requirements for adjusting the union school district by withdrawal as set forth in this section.

(j) Timing of action.

(1) The voters residing in any member district within a union elementary or union high school district shall not initiate the withdrawal process set forth in this section within the first year after the latter of the operational date of a newly formed union elementary or union high school district or, if applicable, the operational date of a union elementary or union high school district adjusted pursuant to subsection (h) of this section.

(2) If a petitioning district’s action to withdraw from a union elementary or union high school district is unsuccessful, then the voters residing in that member district shall not initiate a new withdrawal action under this section until two years after either a withdrawal study committee votes not to approve advancement of the withdrawal process or the vote by the voters that concluded the initial withdrawal action.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

Subchapter 3 Unified Union School Districts

§ 729 Board members; term; conduct of meetings; quorum and voting; powers and duties

(a) Members. Except as set forth in subchapter 2 (exploration, formation, and organization) of this chapter for initial members, each member of the board of a unified union school district shall:

(1) be elected by the voters at a warned meeting of the unified union school district pursuant to sections 730 (nomination and election of unified union school district board members) and 737 (warnings of unified union school district meetings) of this title;

(2) assume office upon election, except as provided in subdivision 737(f)(3) (warnings of unified union school district meetings) of this chapter; and

(3) be sworn in before entering upon the duties of the office.

(b) Term. A member elected at an annual meeting shall serve for a term of three years or until the member’s successor is elected and has taken the oath of office. A member elected at a special meeting shall serve for the balance of the term of office remaining.

(c) Quorum. A majority of the members of the board shall constitute a quorum. Subject to the provisions of subsection (d) of this section but notwithstanding any other provision of law, the concurrence of a majority of members present at a unified union school district board meeting shall be necessary and sufficient for board action; provided, however, the concurrence of more than a majority shall be necessary if required for a particular action by the voter-approved articles of agreement.

(d) Weighted voting. If weighted voting is used to achieve constitutionally required proportionality for members elected under the “proportional to town population” model described in subdivisions 711(d)(1) (proposed unified union school district; proportional to town population) and 730(a)(1) (unified union school district; Australian ballot; proportional to town population) of this chapter, then a number of members of the board holding a majority of the total number of weighted votes shall constitute a quorum, and a majority of the weighted votes cast shall be necessary and sufficient for board action.

(e) Board chair and board clerk. At the board meeting next following each annual district meeting, the unified union school district board shall elect one of its number to serve as the chair of the board and one other of its number to serve as the clerk of the board.

(f) Powers, duties, and liabilities. The powers, duties, and liabilities of a unified union school district board, board chair, and board clerk shall be the same as those of a board, board chair, and board clerk of a town school district.

(g) Minutes. The board clerk shall prepare minutes of the proceedings of the unified union school district board, unless the board votes to delegate those duties to another individual. The board clerk shall transmit the minutes and all other documents constituting the record of board proceedings to the clerk of the unified union school district, who shall be responsible for maintaining a permanent record of board proceedings. In the board clerk’s absence, another member of the school board shall assume the duties of the clerk.

(h) Stipend. The board clerk may be paid upon order of the board.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 730 Unified union school district board members; nomination and election; bond

(a) If by Australian ballot. The provisions of this subsection shall apply to a unified union school district that conducts elections for board membership by Australian ballot.

(1) Proportional to town population.

(A) When membership on the board of a unified union school district is apportioned to each town within the district in a number that is closely proportional to the town’s relative population, the voters residing in the town may file a petition nominating a candidate for board membership. A petition is valid only if:

(i) the candidate is a current voter of the town;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the town or one percent of the legal voters in the town, whichever is less;

(iv) the voters file the petition with the town clerk not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) After confirming that the names on the petition correspond to registered voters of the town, the town clerk shall transmit the name of each duly nominated candidate to the clerk of the unified union school district.

(C) The district clerk shall prepare a unified union school district ballot for each town and shall transmit the ballot to the town clerk to make available to the voters residing in the town.

(D) The voters of a town within the unified union school district shall elect as many board members as are apportioned for that term of office based on the population of the town.

(2) Modified at-large model: allocation to town; at-large representation.

(A) When membership on the board of a unified union school district is allocated to each town within the district, but the allocation is not closely proportional to the town’s relative population and the board member is elected at-large, the voters residing in any one or more of the towns within the district may file a petition nominating a candidate for board membership under the “modified at-large” model. A petition is valid only if:

(i) the candidate is a current voter of the town to which the seat is allocated;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in the unified union school district or one percent of the legal voters in the district, whichever is less;

(iv) the voters file the petition with the clerk of the unified union school district not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the district clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Not later than 5:00 p.m. on the sixth Monday preceding the day of the election, the town clerk of each town within the unified union school district shall furnish to the district clerk, at the expense of the district, authenticated copies of the checklist of legal voters within the town as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150.

(C) The district clerk shall prepare the unified union school district ballot to include the name of each duly nominated candidate and shall transmit the ballot to the town clerk of each town within the district to make available to the voters residing in the town.

(D) The voters of the unified union school district shall elect as many board members as are to be elected at-large for that term of office under the “modified at-large” model.

(3) At-large representation.

(A) When membership on a unified union school district board is not apportioned or allocated pursuant to subdivision (1) (proportional to town population) or (2) (modified at-large) of this subsection (a) and the board member is elected at large, the voters residing in any one or more of the towns within the district may file a petition nominating a candidate for at-large board membership. A petition is valid only if:

(i) the candidate is a current voter of a town within the unified union school district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in the unified union school district or one percent of the legal voters in the district, whichever is less;

(iv) the voters file the petition with the clerk of the unified union school district not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the district clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Not later than 5:00 p.m. on the sixth Monday preceding the day of the election, the town clerk of each town within the unified union school district shall furnish to the district clerk, at the expense of the district, authenticated copies of the checklist of legal voters within the town as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150.

(C) The district clerk shall prepare the unified union school district ballot to include the name of each duly nominated candidate and shall transmit the ballot to the town clerk of each town within the district to make available to the voters residing in the town.

(D) The voters of the unified union district shall elect as many board members as are to be elected at-large for that term of office.

(b) If not by Australian ballot. The provisions of this subsection shall apply to a unified union school district that has not voted to conduct elections for board membership by Australian ballot.

(1) The nomination and election of candidates for the office of unified union school district board member shall occur at a warned meeting of the unified union school district; provided, however, if the district elects board members under the “proportional to town population” model, then the nomination and election of candidates shall occur at an annual or special meeting of the town in which the candidate resides, warned for the purpose pursuant to subsection 737(f) of this chapter.

(2) Voters shall only nominate a person who is present at the meeting and the person shall accept or reject the nomination.

(3) The clerk shall ensure that the candidate is a voter of a specific town if the district elects board members under either the “proportional to town population” model or the “modified at-large” model.

(c) Bond. Before a newly elected board member enters upon the duties of office, the district shall ensure that the district’s blanket bond covers the new member. In lieu of a blanket bond, the district may choose to provide suitable crime insurance coverage.

(d) Notification. Within 10 days after the election of a board member pursuant to this section, the district clerk shall transmit the name of newly elected board members to the Secretary of State.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022; amended 2023, No. 66, § 10, eff. July 1, 2023.)

§ 731 Vacancy on unified union school district board

(a) Filling a vacancy. Notwithstanding any other provision of law to the contrary, this section shall apply to a vacancy on a unified union school district board, unless otherwise provided in the articles of agreement of the district as initially approved by the voters on or before July 1, 2019.

(1) Proportional to town population. If the vacancy is for a seat where membership is apportioned to a town within the unified union school district in a number that is closely proportional to the town’s relative population and only voters residing in the town elect the board member, then the clerk of the unified union school district shall notify the selectboard of the town not later than five days after learning of the vacancy. Within 30 days after providing notice and after consultation with the selectboard, the unified union school district board shall appoint an eligible person to fill the vacancy until the voters elect a successor at an annual or special meeting.

(2) Modified at-large model: allocation to town; at-large representation. If the vacancy is for a seat where membership is allocated to a town within the unified union school district in a number that is not closely proportional to each town’s relative population and the board member is elected at large, then the district clerk shall notify the selectboard of the town not later than five days after learning of the vacancy. Within 30 days after providing notice and after consultation with the selectboard, the unified union school district board shall appoint an eligible person to fill the vacancy until the voters elect a successor at an annual or special meeting.

(3) At-large representation. If the vacancy is for a seat that is neither apportioned nor allocated to a town within the unified union school district as provided in subdivision (1) or (2) of this subsection and the board member is elected at-large, then within 30 days after creation of the vacancy the unified union school district board shall appoint an eligible person to fill the vacancy until the voters elect a successor at an annual or special meeting.

(4) Vacancy in all seats. If all seats on a school board are vacant, then the Secretary of State shall call a special election to fill the vacancies.

(b) Notification. Within 10 days after the appointment of a board member pursuant to this section, the district clerk of the unified union school district shall transmit the name of the appointed board member to the Secretary of State.

(c) Obligations and expenses.

(1) Vacancy in majority. If there are vacancies in a majority of the members of a unified union school district board at the same time, then the remaining member or members are authorized to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies are filled pursuant to the provisions of this section.

(2) Vacancy in all seats. If there are no members of the unified union school district board in office, then the Secretary of State shall authorize the district clerk or other qualified person to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies are filled.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 732 Unified union school district budget; preparation and authorization

(a) The board of a unified union school district shall prepare and distribute a proposed budget annually for the next school year pursuant to the provisions of subdivision 563(11) (powers of school boards; budget) of this title.

(b) If the voters do not approve the board’s proposed budget, then the board shall prepare and present a revised proposed budget pursuant to 17 V.S.A. § 2680(c)(2) (local elections; Australian ballot system; rejected budget).

(c) If the voters do not approve a budget on or before June 30 of any year, then the board of the unified union school district may borrow funds pursuant to the authority granted under section 566 (school district; authority to borrow) of this title. As used in section 566, the “most recently approved school budget” of a union school district in its first fiscal year of full operations means the cumulative budget amount of the most recently approved school budgets of all districts that merged to form the union district plus one percent.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 733 Annual report; data

(a) The board of a unified union school district shall prepare an annual report concerning the affairs of the district and have it printed and distributed to the voters of the district pursuant to the provisions of subdivision 563(10) (school districts; powers of school boards; report) of this title. The board shall file the report with the unified union school district clerk and with the town clerk of each town within the district.

(b) Annually, on or before August 15, the unified union school district board shall provide to the Secretary answers to statistical inquiries that may be addressed to the district by the Secretary.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 735 Officers; election; term; vacancy; bond

(a) Officers. At an annual meeting of the unified union school district, the voters shall elect a moderator from among the registered voters of the district. The voters shall also vote to elect a clerk and a treasurer of the district; provided, however, at any annual or special meeting, the voters may vote to authorize the school board to appoint the clerk or the treasurer, or both. The clerk of the district shall be elected or appointed from among the voters. The treasurer may also be the supervisory union treasurer and need not be a resident of the union school district.

(b) Election.

(1) If an officer is elected by Australian ballot in a unified union school district, then the provisions of subdivision 730(a)(3) for election by Australian ballot of at-large candidates for the unified union school district board shall apply.

(2) Votes cast to elect an officer shall be commingled and reported to the voters pursuant to section 742 (commingling of votes cast by Australian ballot and from the floor) of this chapter.

(c) Terms.

(1) Moderator. A moderator elected at an annual meeting pursuant to this section shall assume office on July 1 following the election, unless the voters vote at an annual meeting for the moderator to assume office upon election. A moderator shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(2) Clerk. A clerk elected at an annual meeting pursuant to this section shall assume office on July 1 following the election. A clerk shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(3) Treasurer. A treasurer elected at an annual meeting pursuant to this section shall assume office on July 1 following the election. A treasurer shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(d) Vacancy. The board of the unified union school district shall fill a vacancy in any office elected pursuant to this section as soon as practicable after the vacancy occurs. The appointee shall serve upon appointment for the remainder of the unexpired term of office or until the voters elect a successor.

(e) Oath of office. An officer elected or appointed pursuant to this section shall be sworn in before entering upon the duties of the office.

(f) Bond. The district shall ensure that its blanket bond covers a newly elected or appointed treasurer before the treasurer enters upon the duties of the office. In lieu of a blanket bond, the district may choose to provide suitable crime insurance coverage.

(g) Notification. Within 10 days after the election or appointment of any officer pursuant to this section, the clerk of the unified union school district shall transmit the name of the officer to the Secretary of State.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 736 Officers; powers, duties, and liabilities

(a) Moderator. The powers, duties, and liabilities of the moderator of a unified union school district shall be the same as those of a moderator of a town school district. The moderator shall preside at each annual and special meeting of the unified union school district. In the moderator’s absence, the voters shall elect a moderator pro tempore to preside.

(b) Clerk. The powers, duties, and liabilities of the clerk of a unified union school district shall be the same as those of a clerk of a town school district. The district clerk shall keep a record of the votes and the proceedings of the union school district meetings and shall provide certified copies of them when requested.

(c) Treasurer. The powers, duties, and liabilities of the treasurer of a unified union school district shall be the same as those of a treasurer of a town school district.

(d) Documents. The person having custody shall provide to each newly elected or appointed officer of a unified union district all books, papers, and electronic documents of the office.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 737 Warnings of unified union school district meetings

(a) The board of a unified union school district shall have the same authority and obligation to warn or call meetings of the district as a town school board has to warn or call town school district meetings.

(b) Except as provided in subsection (f) of this section, the district clerk shall warn a unified union school district meeting pursuant to the provisions of 17 V.S.A. § 2641 (town meetings and local elections; warning and notice publication) by posting a warning and notice to voters, signed by the chair of the board or the chair’s designee, specifying the date, time, location, and business of the meeting, in at least one public place in each town within the unified union school district, and causing the same to be published once in a newspaper circulating in the unified union school district. In the district clerk’s absence, the chair of the board or the chair’s designee shall warn the meeting pursuant to the provisions of this section.

(c) The warning shall, by separate articles, specifically indicate the business to be transacted, to include the offices and the questions upon which the electorate shall vote. The warning shall also contain any article or articles requested by a petition signed by at least five percent of the voters of the district and filed with the district clerk pursuant to 17 V.S.A. § 2642 (town meetings and local elections; warning and notice contents).

(d) The posted notice that accompanies the warning shall include information on voter registration, early and absentee voting, the time and location at which the ballots will be counted, and any other applicable information.

(e) The warning shall be recorded in the office of the district clerk before posting.

(f) This subsection applies if a unified union school district elects school board members under the “proportional to town population” model and if it elects those members by a floor vote rather than by Australian ballot.

(1) The election shall be warned as follows:

(A) The district clerk shall transmit the signed warning to each town clerk.

(B) The district clerk shall assist each town clerk to incorporate the warning into the warning for the annual or special meeting of each town.

(C) Each town clerk, rather than the district clerk, shall post and publish the warning pursuant to the provisions of subsection (b) of this section.

(2) Notwithstanding any provision of law to the contrary, if any town within the unified union school district elects its selectboard members by Australian ballot, then the warning, nomination, ballot preparation, and election of unified union school district board members shall proceed pursuant to the same laws that govern the town.

(3) If an annual town meeting at which the board members are elected under this subsection is more than 30 days prior to the annual meeting of the unified union school district, then notwithstanding subsection 729(a) (members of unified union school district boards) of this section, the newly elected board members shall assume office at the conclusion of the district’s annual meeting.

(g) Notwithstanding any provisions of this section to the contrary, a unified union school district:

(1) shall warn a meeting called for the purpose of considering a bond issue pursuant to the provisions of 24 V.S.A. § 1755; and

(2) shall warn a meeting to consider a revised proposed budget pursuant to the provisions of subsection 732(b) of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 738 Checklist for union district meetings where voting is conducted from the floor

(a) Not later than the close of business on the day before an annual or special meeting of a unified union school district, the town clerk of each town within the district shall furnish to the district clerk, at the expense of the district, authenticated copies of the checklist of legal voters within the town as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150 (elections; registration of voters). The checklist shall control for purposes of determining voter eligibility in the unified union school district.

(b) During the annual or special meeting, one or more members of each town’s board of civil authority shall assist the district clerk to determine voter eligibility and to supervise voting during the meeting.

(c) This section shall not apply to a meeting warned pursuant to subsection 737(f) (unified union school district meetings; proportional to town population; floor vote) of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 739 Conduct of vote if by Australian ballot

For any vote that proceeds by Australian ballot in a unified union school district:

(1) A district voter shall vote by Australian ballot in the town in which the voter currently resides at the polling location identified in the warning.

(2) Voting shall occur in each town on the same day.

(3) The board of civil authority of each town shall be responsible for determining the eligibility of persons to vote and for supervising voting at that polling location.

(4) The opportunity for early and absentee voting pursuant to 17 V.S.A. §§ 2531–2550 (conduct of elections; early and absentee voters) shall be provided.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 740 Preparation and form of Australian ballot

(a) The clerk of a unified union school district shall prepare the ballot for any vote that proceeds by Australian ballot in the district.

(b) Only questions warned by the unified union school district and presented to the voters of that district shall appear on a ballot prepared pursuant to subsection (a) of this section.

(c) Warned questions of the unified union school district shall not appear on the same ballot as questions warned by the legislative body of a town within the unified union school district.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 741 Counting of Australian ballots

(a) Process.

(1) At least two members of the board of civil authority of each town within a unified union school district, or two election officials appointed by the board of civil authority of that town, shall transport ballots cast in the town in a sealed container to a central location designated by the district clerk. The district clerk shall place the ballots from all locations into a single container.

(2) The boards of civil authority shall not count the ballots for purposes of determining the outcome of the votes cast in that town prior to transporting them but may open the containers and count the total number of ballots cast at that polling location.

(3) The district clerk or designee shall supervise representatives of the boards of civil authority, identified in subdivision (1) of this subsection, to count ballots at the central location pursuant to section 742 (commingling and reporting of votes cast by Australian ballot and from the floor) of this title. The district clerk shall also have the authority to appoint current unified union school district board members who are not on the ballot to aid in the counting of ballots.

(4) The ballots shall be counted as soon as possible, but not later than 24 hours after the time at which the polls closed.

(5) If ballots are to be counted on the day following the election, then the clerk of each town within the unified union school district shall store the ballots in a secure location in the town until they are transported on the following day to the central location designated by the district clerk for counting.

(6) After the ballots have been counted, the district clerk shall seal them in a secure container and store them for at least 90 days in a secure location.

(b) Applicability. The counting of Australian ballots cast by voters in a unified union school district for the election of members of the district board, for the election of district officers, for proposed budgets, and for any other public questions shall proceed pursuant to the provisions of this section, except when:

(1) Vermont statute explicitly permits or requires a different method for a specific type of question presented to the voters;

(2) the ballots have been cast to elect a unified union school district board member where membership on the board is apportioned based on town population pursuant to subdivision 730(a)(1) (unified union school district; Australian ballot; proportional to town population) of this title; or

(3) the articles of agreement as initially approved by the voters on or before July 1, 2019 explicitly provide that the board of civil authority of each town within the unified union school district shall count Australian ballots cast in that town and report that town’s results to the district clerk, who shall calculate total votes cast within the unified union school district and report the result of the vote to the public.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 742 Commingling and reporting of all votes cast by Australian Ballot and from the floor

(a) Commingling. Votes cast by the voters of a unified union school district shall be commingled, whether cast by Australian ballot or from the floor, and shall not be counted according to the town in which a voter resides.

(b) Report to public. The district clerk shall report the commingled results of votes cast by voters of a unified union school district.

(c) Applicability. The commingling and reporting of votes cast by voters in a unified union school district for the election of members of the district board, for the election of district officers, for proposed budgets, and for any other public question shall proceed pursuant to the provisions of this section regardless of whether the vote proceeds by Australian ballot or by a floor vote, except when:

(1) Vermont statute explicitly permits or requires a different method for a specific type of question presented to the voters;

(2) the ballots have been cast to elect a unified union school district board member where membership on the board is apportioned based on town population pursuant to subdivision 730(a)(1) (unified union school district; Australian ballot; proportional to town population) of this chapter; or

(3) the articles of agreement as initially approved by the voters on or before July 1, 2019 explicitly provide that the board of civil authority of each town within the unified union school district shall count Australian ballots cast in that town and report that town’s results to the district clerk, who shall calculate total votes cast within the unified union school district and report the result of the vote to the public.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 743 Bond issues; debt limit

(a) A unified union school district may make improvements, as defined by 24 V.S.A. § 1751 (municipal and county government; indebtedness definitions), and may incur indebtedness for improvements as provided in 24 V.S.A. chapter 53, subchapter 1 (municipal and county government; indebtedness generally).

(b) The debt limit of the unified union school district shall be 10 times the total of the education grand lists of the towns within the unified union school district. The existing indebtedness of a unified union school district incurred to finance any project approved under sections 3447 to 3456 (State aid for capital construction costs) of this title shall not be considered a part of the indebtedness of the unified union school district for purposes of determining its debt limit for a new proposed bond issue.

(c) Bond issues under this section shall be determined by Australian ballot and shall proceed pursuant to sections 737 (warnings of unified union school district meetings) and 739–742 (vote by Australian ballot) of this subchapter. The ballots shall be commingled before counting.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

Subchapter 4 Union Elementary School Districts and Union High School Districts

§ 745 Definitions

As used in this subchapter, words have the meaning as defined in section 702 (definitions) of this title and any words not defined in that section have their plain meaning, except:

(1) Member district. “Member district” means either a town school district that is a member district as defined in section 702 (definitions) of this title or a town in a member district if the member district is itself a union elementary or union high school district, as applicable.

(2) Town clerk.

(A) If, pursuant to section 425 (other town school district officers) of this title, the voters of a member district have elected a district clerk who is not also the clerk of the town, then “town clerk” means the elected clerk of that member district.

(B) Notwithstanding subdivision (A) of this subdivision (2), if a union elementary or union high school district is a member district of the union school district, then “town clerk” has its plain meaning and means the clerk of each town in the member district.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 747 Board members; term; conduct of meetings; quorum and voting; powers and duties

(a) Members. Except as set forth in subchapter 2 (exploration, formation, and organization) of this chapter for initial members, each member of the board of a union elementary school or union high school district shall:

(1) be elected by the voters at a warned meeting pursuant to section 748 (union elementary and union high school district board members) of this chapter;

(2) assume office upon election, except as provided in subdivision 755(f)(3) (warnings of union elementary and union high school district meetings) of this chapter; and

(3) be sworn in before entering upon the duties of the office.

(b) Term. A member elected at an annual meeting shall serve for a term of three years or until the member’s successor is elected and has taken the oath of office. A member elected at a special meeting shall serve for the balance of the term remaining.

(c) Quorum. A majority of the members of the board shall constitute a quorum. Subject to the provisions of subsection (d) of this section but notwithstanding any other provision of law, the concurrence of a majority of members present at a union elementary or union high school district board meeting shall be necessary and sufficient for board action; provided, however, the concurrence of more than a majority shall be necessary if required for a particular action by the voter-approved articles of agreement.

(d) Weighted voting. If weighted voting is used to achieve constitutionally required proportionality for members elected under the “proportional to town population” model set out in subdivisions 711(e)(1) (proposed union elementary or union high school district; proportional to town population) and 748(a)(1) (union elementary and union high school district board members; Australian ballot; proportional to town population) of this chapter, then a number of members of the board holding a majority of the total number of weighted votes shall constitute a quorum, and a majority of the weighted votes cast shall be necessary and sufficient for board action.

(e) Board chair and board clerk. At the meeting next following each annual meeting, the union elementary or union high school district board shall elect one of its number to serve as the chair of the board and one other of its number to serve as the clerk of the board.

(f) Powers, duties, and liabilities. The powers, duties, and liabilities of a union elementary or union high school district board, board chair, and board clerk shall be the same as those of a board, board chair, and board clerk of a town school district.

(g) Minutes. The board clerk shall prepare minutes of the proceedings of the union elementary or union high school district board, unless the board votes to delegate those duties to another individual. The board clerk shall transmit the minutes and all other documents constituting the record of board proceedings to the clerk of the union elementary or union high school district, who shall be responsible for maintaining a permanent record of board proceedings. In the board clerk’s absence, another member of the school board shall assume the duties of the clerk.

(h) Stipend. The board clerk may be paid upon order of the board.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 748 Union elementary and union high school district board members; nomination and election; bond

(a) If by Australian ballot. The provisions of this subsection shall apply to a union elementary or union high school district that conducts elections for board membership by Australian ballot.

(1) Proportional to town population.

(A) When membership on the board of a union elementary or union high school district is apportioned to each member district in a number that is closely proportional to the member district’s relative population, the voters of the member district may file a petition nominating a candidate for board membership. A petition is valid only if:

(i) the candidate is a current voter of the member district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 30 voters residing in the member district or one percent of the legal voters in that district, whichever is less;

(iv) the voters file the petition with the town clerk not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the town clerk a written consent to the printing of the candidate’s name on the ballot.

(B) After confirming that the names on the petition correspond to registered voters of the member district, the town clerk shall transmit the name of each duly nominated candidate to the clerk of the union elementary or union high school district.

(C) The union district clerk shall prepare a union elementary or union high school district ballot for each member district and shall transmit the ballot to the town clerk to make available to the voters residing in the member district.

(D) The voters of the member district shall elect as many board members as are apportioned for that term of office on the union elementary or union high school district board based on the population of the member district.

(2) Modified at-large model: allocation to town; at-large representation.

(A) When membership on the board of a union elementary or union high school district is allocated to each member district, but the allocation is not closely proportional to the member district’s population and the board member is elected at-large, the voters residing in any one or more of the member districts may file a petition nominating a candidate for board membership under the “modified at-large” model. A petition is valid only if:

(i) the candidate is a current voter of the member district to which the seat is allocated;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in the union elementary or union high school district or one percent of the legal voters in the district, whichever is less;

(iv) the voters file the petition with the clerk of the union elementary or union high school district not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the union district clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Not later than 5:00 p.m. on the sixth Monday preceding the day of the election, the town clerk of each member district shall furnish to the union district clerk, at the expense of the union district, authenticated copies of the checklist of legal voters within the member district as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150.

(C) The union district clerk shall prepare the union elementary or union high school district ballot to include the name of each duly nominated candidate and shall transmit the ballot to the town clerk of each member district to make available to the voters residing in the member district.

(D) The voters of the union elementary or union high school district shall elect as many board members as are to be elected at-large for that term of office under the “modified at-large” model.

(3) At-large representation.

(A) When membership on the board of a union elementary or union high school district is not apportioned or allocated pursuant to subdivision (1) (proportional to town population) or (2) (modified at-large) of this subsection (a) (Australian ballot) and the board member is elected at large, the voters residing in any one or more of the member districts may file a petition nominating a candidate for at-large board membership. A petition is valid only if:

(i) the candidate is a current voter of the union elementary or union high school district;

(ii) the petition identifies the term of office for which the candidate is nominated;

(iii) the petition is signed by at least 60 voters residing in the union elementary or union high school district or one percent of the legal voters in the district, whichever is less;

(iv) the voters file the petition with the clerk of the union elementary or union high school district not later than 5:00 p.m. on the sixth Monday preceding the day of the election; and

(v) the candidate files with the union district clerk a written consent to the printing of the candidate’s name on the ballot.

(B) Not later than 5:00 p.m. on the sixth Monday preceding the day of the election, the town clerk of each member district shall furnish to the union district clerk, at the expense of the union district, authenticated copies of the checklist of legal voters within the member district as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150.

(C) The union district clerk shall prepare the union elementary or union high school district ballot to include the name of each duly nominated candidate and shall transmit the ballot to the town clerk of each member district to make available to the voters residing in the member district.

(D) The voters of the union elementary or union high school district shall elect as many board members as are to be elected at-large for that term of office.

(b) If not by Australian ballot. The provisions of this subsection (b) shall apply to a union elementary or union high school district that does not conduct elections for board membership by Australian ballot.

(1) The nomination and election of candidates for the office of union elementary or union high school district board member shall occur at a warned meeting of the union school district; provided, however, if the union district elects board members under the “proportional to town population” model, then the nomination and election of candidates shall occur at an annual or special meeting of the member district for the town in which the candidate resides, warned for the purpose pursuant to subsection 755(f) (warnings of union elementary and union high school district meetings; members elected under proportional to town population model and by floor vote) of this chapter.

(2) Voters shall only nominate a person who is present at the meeting, and the person shall accept or reject the nomination.

(3) The meeting shall proceed in a manner to ensure that the candidate is a voter of a specific member district if the union district elects board members under either the “proportional to town population” model or the “modified at-large” model.

(c) Bond. Before a newly elected board member enters upon the duties of office, the union district shall ensure that the district’s blanket bond covers the new member. In lieu of a blanket bond, the district may choose to provide suitable crime insurance coverage.

(d) Notification. Within 10 days after the election of a board member pursuant to this section, the union elementary or union high school district clerk shall transmit the name of the newly elected board member to the Secretary of State.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022; amended 2023, No. 66, § 11, eff. July 1, 2023.)

§ 749 Vacancy on union elementary or union high school district board

(a) Filling a vacancy. Notwithstanding any other provisions of law to the contrary, this section shall apply to a vacancy on a union elementary or union high school district board, unless otherwise provided in the articles of agreement of the union elementary or union high school district as initially approved by the voters on or before July 1, 2019.

(1) Proportional to town population. If the vacancy is for a seat where membership is apportioned to a member district in a number that is closely proportional to its relative population and only voters residing in the member district elect the board member, then the union elementary or union high school district clerk shall notify the board of the member district not later than five days after learning of the vacancy. Within 30 days after receiving notice, the board of the member district shall appoint a person who is otherwise eligible to serve as a member of the union elementary or union high school district board to fill the vacancy until the voters elect a successor at an annual or special meeting pursuant to the provisions of section 748 (union elementary and union high school district board members) of this chapter.

(2) Modified at-large model: allocation to town; at-large representation. If the vacancy is for a seat where membership is allocated to a member district in a number that is not closely proportional to each district’s relative population and the board member is elected at-large, then the union elementary or union high school district clerk shall notify the board of the member district not later than five days after learning of the vacancy. Within 30 days after providing notice and after consultation with the member district’s board, the union elementary or union high school district board shall appoint a person who is otherwise eligible to serve as a member of the union elementary or union high school district board to fill the vacancy until the voters elect a successor at an annual or special meeting pursuant to the provisions of section 748 (union elementary and union high school district board members) of this chapter.

(3) At-large representation. If the vacancy is for a seat that is neither apportioned nor allocated to a member district pursuant to subdivision (1) (proportional to town population) or (2) (modified at-large) of this subsection and the board member is elected at-large, then within 30 days after creation of the vacancy, the union elementary or union high school district board shall appoint a person who is otherwise eligible to serve as a member of the board to fill the vacancy until the voters elect a successor at an annual or special meeting pursuant to the provisions of section 748 (union elementary and union high school district board members) of this chapter.

(4) No board of member district. For purposes of subdivisions (1) (proportional to town population) and (2) (modified at-large) of this subsection (a), if the member district is also a union school district and any related town school district has discontinued operations pursuant to subdivision 717(b)(2) (discontinuation of forming districts in union elementary and union high school districts) of this chapter and has no board, then the clerk of the union elementary or union high school district shall notify the selectboard of the pertinent town not later than five days after learning of the vacancy. Within 30 days after providing notice and after consultation with the selectboard, the union elementary or union high school district board shall appoint a person who is otherwise eligible to serve as a member of the union elementary or union high school district board to fill the vacancy until the voters elect a successor at an annual or special meeting pursuant to the provisions of section 748 (union elementary and union high school district board members) of this chapter.

(5) Vacancy in all seats. If all seats on a school board are vacant, then the Secretary of State shall call a special election to fill the vacancies.

(b) Notification. Within 10 days after the appointment of a board member pursuant to this section, the clerk of the union elementary or union high school district shall transmit the name of the appointed board member to the Secretary of State.

(c) Obligations and expenses.

(1) Vacancy in majority. If there are vacancies in a majority of the members of a union elementary or union high school district board at the same time, then the remaining member or members are authorized to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies are filled pursuant to the provisions of this section.

(2) Vacancy in all seats. If there are no members of the union elementary or union high school district board in office, then the Secretary of State shall appoint and authorize the district clerk or other qualified person to draw orders for payment of continuing obligations and necessary expenses until a majority of the vacancies are filled.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 750 Union elementary or union high school district budget; preparation and authorization

(a) The board of a union elementary or union high school district shall prepare and distribute a proposed budget annually for the next school year pursuant to the provisions of subdivision 563(11) (powers of school boards; budget) of this title.

(b) If the voters do not approve the board’s proposed budget, then the board shall prepare a revised proposed budget pursuant to 17 V.S.A. § 2680(c)(2) (local elections using the Australian ballot system; rejected budget).

(c) If the voters do not approve a budget on or before June 30 of any year, the board of the unified union school district may borrow funds pursuant to the authority granted under section 566 (school districts; authority to borrow) of this title. As used in section 566, the “most recently approved school budget” of a union school district in its first fiscal year of full operations means the cumulative budget amount of the most recently approved school budgets of all districts that merged to form the union district plus 1 percent.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 751 Annual report; data

(a) The board of a union elementary or union high school district shall prepare an annual report concerning the affairs of the district and have it printed and distributed to the voters of the district pursuant to the provisions of subdivision 563(10) (powers of school boards; report) of this title. The board shall file the report with the union district clerk and the clerk of each member district.

(b) Annually, on or before August 15, the union elementary or union high school district board shall provide to the Secretary answers to statistical inquiries that may be addressed to the district by the Secretary.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 753 Officers; election; term; vacancy; bond

(a) Officers. At an annual meeting of the union elementary or union high school district, the voters shall elect a moderator from among the registered voters. The voters shall also vote to elect a clerk and a treasurer of the district; provided, however, at any annual or special meeting, the voters may vote to authorize the school board to appoint the clerk or the treasurer, or both. The clerk of the district shall be elected or appointed from among the voters. The treasurer may also be the supervisory union treasurer and need not be a resident of the union elementary or union high school district.

(b) Election if by Australian ballot. If a union elementary or union high school district elects its officers by Australian ballot, then the provisions of subdivision 748(a)(3) of this chapter for election by Australian ballot of at-large candidates for the union elementary or union high school district board shall apply.

(c) Terms.

(1) Moderator. A moderator elected at an annual meeting pursuant to this section shall assume office on July 1 following the election, unless the voters vote at an annual meeting for the moderator to assume office upon election. A moderator shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(2) Clerk. A clerk elected at an annual meeting pursuant to this section shall assume office on July 1 following the election. A clerk shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(3) Treasurer. A treasurer elected at an annual meeting pursuant to this section shall assume office on July 1 following the election. A clerk shall serve a term of one year or until a successor is elected and has taken the oath of office unless the voters extend the term length up to three years.

(d) Vacancy. The board of the union elementary or union high school district shall fill a vacancy in any office elected or appointed pursuant to this section as soon as practicable after the vacancy occurs. The appointee shall serve upon appointment for the remainder of the unexpired term of office or until the voters elect a successor.

(e) Oath of office. An officer elected or appointed pursuant to this section shall be sworn in before entering upon the duties of the office.

(f) Bond. The district shall ensure that its blanket bond covers a newly elected or appointed treasurer before the treasurer enters upon the duties of the office. In lieu of a blanket bond, the district may choose to provide suitable crime insurance coverage.

(g) Notification. Within 10 days after the election or appointment of any officer pursuant to this section, the clerk of the union elementary or union high school district shall transmit the name of the officer to the Secretary of State.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 754 Officers; powers, duties, and liabilities

(a) Moderator. The powers, duties, and liabilities of the moderator of a union elementary or union high school district shall be the same as those of a moderator of a town school district. The moderator shall preside at each annual and special meeting of the union elementary or union high school district. In the moderator’s absence, the voters shall elect a moderator pro tempore to preside.

(b) Clerk. The powers, duties, and liabilities of the clerk of a union elementary or union high school district shall be the same as those of a clerk of a town school district. The district clerk shall keep a record of the votes and the proceedings of the union school district meetings and shall provide certified copies of them when requested.

(c) Treasurer. The powers, duties, and liabilities of the treasurer of a union elementary or union high school district shall be the same as those of a treasurer of a town school district.

(d) Documents. The person having custody shall provide to each elected or appointed officer of a union district all books, papers, and electronic documents of the office.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 755 Warnings of union elementary and union high school district meetings

(a) The board of a union elementary or union high school district shall have the same authority and obligation to warn or call meetings of the district as a town school board has to warn or call town school district meetings.

(b) Except as provided in subsection (f) of this section, not less than 30 nor more than 40 days before the meeting, the union district clerk shall warn a union elementary or union high school district meeting by posting a warning and notice to voters, signed by the chair of the union district board or the chair’s designee, specifying the date, time, location, and business of the meeting, in the district clerk’s office and at least one public place in each town within the union elementary or union high school district, and causing the same to be published once in a newspaper circulating in the union district at least five days before the meeting. In the district clerk’s absence, the chair of the board or the chair’s designee shall warn the meeting pursuant to the provisions of this section.

(c) The warning shall, by separate articles, specifically indicate the business to be transacted, including the offices and the questions upon which the electorate shall vote. The warning shall also contain any article or articles requested by a petition signed by at least five percent of the voters of the district and filed with the district clerk pursuant to 17 V.S.A. § 2642 (town meetings and local elections; warning and notice contents).

(d) The posted notice that accompanies the warning shall include information on voter registration, early and absentee voting, the time and location at which the ballots will be counted, and other applicable information.

(e) The warning shall be recorded in the office of the district clerk and shall be provided to the town clerk of each town in the unified elementary or union high school district before being posted.

(f) This subsection shall apply if a union elementary or union high school district elects school board members under the “proportional to town population” model and if it elects those members by a floor vote rather than by Australian ballot.

(1) The election shall be warned as follows:

(A) The district clerk shall transmit the signed warning to each town clerk.

(B) The district clerk shall assist each town clerk to incorporate the warning into the warning for the annual or special meeting of each member district.

(C) Each town clerk, rather than the union district clerk, shall post and publish the warning pursuant to the provisions of subsection (b) of this section.

(2) Notwithstanding any provision of law to the contrary, if any member district elects its own board members by Australian ballot, then the warning, nomination, ballot preparation, and election of union school district board members shall proceed pursuant to the same laws that govern the member district.

(3) If an annual meeting of a member district at which the union district board members are elected under this subsection is more than 30 days prior to the annual meeting of the union school district, then notwithstanding subsection 747(a) (board members of union elementary and union high school districts) of this chapter, the newly elected board members shall assume office at the conclusion of the union school district’s annual meeting.

(g) Notwithstanding any provision of this section to the contrary, a union elementary or union high school district:

(1) shall warn a meeting called for the purpose of considering a bond issue in accordance with the provisions of 24 V.S.A. § 1755; and

(2) shall warn a meeting to consider a revised proposed budget pursuant to the provisions of subsection 750(b) (union elementary or union high school district revised proposed budget) of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 756 Union district meetings conducted from the floor

(a) Not later than the close of business on the day before the meeting, the town clerk of each member district of a union elementary or union high school district shall furnish to the union district clerk, at the expense of the union district, authenticated copies of the checklist of legal voters within the member district as the checklist appears after revisions are made pursuant to 17 V.S.A. §§ 2141–2150 (registration of voters). The checklist shall control for purposes of determining voter eligibility in the union elementary or union high school district.

(b) During the annual or special meeting, one or more members of each town’s board of civil authority shall assist the union district clerk to determine voter eligibility and to supervise voting during the meeting.

(c) Votes cast at an annual or special meeting shall be commingled and shall not be counted according to the town in which a voter resides.

(d) The provisions of this section shall apply to all votes of the electorate in a union elementary or union high school district that do not proceed by Australian ballot; provided, however:

(1) They shall not apply if Vermont statute explicitly permits or requires a different method for a specific type of question presented to the voters.

(2) They shall not apply to a vote warned pursuant to subsection 755(f) (warnings of union elementary and union high school district meetings; members elected under proportional to town population model and by floor vote) of this chapter.

(e) If a person who resides in a member district and is otherwise eligible to vote at a union elementary or union high school district meeting has not maintained residence in the member district for the requisite number of days but resided in another member district of the union elementary or union high school district for the requisite number of days, then the town clerk of the member district in which the person currently resides shall enter such person’s name on the checklist of legal voters if the person presents to that town clerk a certificate signed by the town clerk of the member district in which the person formally resided confirming that the person lived within the union elementary or union high school district for the requisite number of days.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 757 Conduct of vote if by Australian ballot

In any vote that proceeds by Australian ballot in a union elementary or union high school district:

(1) A district voter shall vote by Australian ballot in the town in which the voter currently resides at the polling location identified in the warning.

(2) Voting shall occur in each town on the same day.

(3) The board of civil authority of each town shall be responsible for determining the eligibility of persons to vote and for supervising voting at that polling location.

(4) The opportunity for early and absentee voting pursuant to 17 V.S.A. §§ 2531–2550 (conduct of elections; early or absentee voters) shall be provided.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 758 Preparation and form of Australian ballot

(a) The clerk of a union elementary or union high school district shall prepare the ballot for any vote that proceeds by Australian ballot in the union school district.

(b) Only questions warned by the union elementary or union high school district and presented to the voters of that district shall appear on a ballot prepared pursuant to subsection (a) of this section.

(c) Warned questions of the union elementary or union high school district shall not appear on the same ballot as questions warned by a member district of the union elementary or union high school district or by the legislative body of a town within the union elementary or union high school district.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 759 Counting and reporting results of vote by Australian ballot

(a) Process if commingled. If the voters have approved the commingling of votes cast by Australian ballot for any or all categories of public questions, including elections and budget votes, or if Vermont law requires commingling, then the following process applies to those votes except to the extent that Vermont law explicitly requires a different process for a specific type of public question.

(1) At least two members of the board of civil authority of each town within a union elementary or union high school district, or two election officials appointed by the board of civil authority of that town, shall transport ballots cast in the member district in a sealed container to a central location designated by the clerk of the union elementary or union high school district.

(2) The boards of civil authority shall not count the ballots for purposes of determining the outcome of the votes cast in the member district prior to transporting them but may open the containers and count the total number of ballots cast at that polling location.

(3) The union elementary or union high school district clerk or designee shall supervise representatives of the boards of civil authority to count ballots at the central location. The union elementary or union high school district clerk shall also have the authority to appoint current union elementary or union high school district board members who are not on the ballot to aid in the counting of ballots

(4) The ballots shall be counted as soon as possible, but not later than 24 hours after the time at which the polls closed.

(5) If ballots are to be counted on the day following the election, then the clerk of each member district shall store the ballots in a secure location until they are transported on the following day to the central location designated by the union district clerk for counting.

(6) Ballots from all member districts shall be combined into a single group before counting and shall not be counted according to the member district or town in which a voter resides.

(7) After the ballots have been counted, the union district clerk shall seal them in a secure container and store them for at least 90 days at a secure location.

(8) The union district clerk shall report the commingled results of votes cast within the union elementary or union high school district to the public.

(b) Process if not commingled. If the voters have not approved the commingling of votes cast by Australian ballot for budgets, elections, or any other category of public question, and if Vermont law does not require commingling, then the following process applies to those votes except to the extent that Vermont law explicitly requires a different process for a specific type of public question.

(1) The board of civil authority of each town within the union elementary or union high school district shall count Australian ballots cast in the member district and report the results to the clerk of the union district.

(2) The clerk of the union district shall calculate total votes cast within the union district for any vote that requires approval by the electorate of the entire union elementary or union high school district, rather than approval by the voters in one member district or by the voters in each member district separately.

(3) The union district shall report to the public the results of total votes cast; provided, however, that both the union district clerk and the clerk of each member school district shall report the results of ballots cast to elect a union school district board member where membership on the board is apportioned based on town population pursuant to subdivision 748(a)(1) of this chapter.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 760 Bond issues; debt limit

(a) A union elementary or union high school district may make improvements, as defined by 24 V.S.A. § 1751, and may incur indebtedness for the improvements as provided in 24 V.S.A. chapter 53, subchapter 1.

(b) The debt limit of the union elementary or union high school district shall be 10 times the total of the education grand lists of the member districts of the union school district. The existing indebtedness of a union elementary or union high school district incurred to finance any project approved under sections 3447 to 3456 of this title shall not be considered a part of the indebtedness of the union elementary or union high school district for purposes of determining its debt limit for a new proposed bond issue. An obligation incurred by a union elementary or union high school district pursuant to this chapter shall be the joint and several obligation of the union school district and each of its member districts. Any joint or several obligation incurred by a member district pursuant to this subsection shall not be considered in determining the debt limit for the separate purposes of the member district.

(c) Bond issues under this section shall be determined by Australian ballot and shall proceed pursuant to sections 755 (warnings of union elementary school district and union high school district meetings) and 757–759 (vote by Australian ballot) of this subchapter. Ballots shall be commingled before counting.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

Subchapter 5 Districts Formed Pursuant to Prior Laws

§ 763 Ratification; articles of agreement; application of chapter

(a) Each union school district in existence on July 1, 2022, is ratified and subject to the provisions of this chapter 11, regardless of whether the district was formed by an affirmative vote of the electorate or by the State Board as part of its “Final Report of Decisions and Order on Statewide School District Merger Decisions Pursuant to [2015 Acts and Resolves No.] 46, Sections 8(b) and 10” dated November 28, 2018 (the Order).

(b) References in this chapter 11 to articles of agreement initially adopted by the voters shall also mean articles of agreement as issued by the State Board as part of the Order.

(c) Articles of agreement in effect on June 30, 2022, as initially adopted by the voters or subsequently amended, shall govern the district unless and until amended; provided, however, and notwithstanding the provisions of 1 V.S.A. § 214 or other laws to the contrary, the provisions of this chapter 11 shall govern in all matters not addressed in the articles of agreement and shall take precedence in the event of conflict with any article.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

§ 764 Secretary of State; recording certificates

(a) To ensure that documentary evidence relating to the creation of union school districts can be found in one location, the Secretary of Education shall forward to the Secretary of State copies of the certifications designating the existence of each new union school district created pursuant to the State Board’s “Final Report of Decisions and Order on Statewide School District Merger Decisions Pursuant to [2015 Acts and Resolves No.] 46, Sections 8(b) and 10” dated November 28, 2018 (the Order).

(b) The Secretary of State shall record the certifications and all subsequent amendments and addenda to the certifications.

(c) The Secretary of State shall file a certified copy of the recorded certification and any amendments or addenda with the elected clerk of each union school district created by the Order.

(Added 2021, No. 176 (Adj. Sess.), § 3, eff. June 7, 2022.)

Chapter 13 Interstate High School Districts

§§ 731-761 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Chapter 15 New Hampshire-Vermont Interstate School Compact

§ 771 General provisions—Article I

A. Statement of policy. It is the purpose of this compact to increase the educational opportunities within the states of New Hampshire and Vermont by encouraging the formation of interstate school districts which will each be a natural social and economic region with adequate financial resources and a number of pupils sufficient to permit the efficient use of school facilities within the interstate district and to provide improved instruction. The state boards of education of New Hampshire and Vermont may formulate and adopt additional standards consistent with this purpose and with these standards; and the formation of any interstate school district and the adoption of its articles of agreement shall be subject to the approval of both state boards as hereinafter set forth.

B. Requirement of Congressional Approval. This compact shall not become effective until approved by the United States Congress.

C. Definitions. The terms used in this compact shall be construed as follows, unless a different meaning is clearly apparent from the language or context:

a. “Interstate school district” and “interstate district” shall mean a school district composed of one or more school districts located in the State of New Hampshire associated under this compact with one or more school districts located in the State of Vermont, and may include either the elementary schools, the secondary schools, or both.

b. “Member school district” and “member district” shall mean a school district located either in New Hampshire or Vermont which is included within the boundaries of a proposed or established interstate school district. In the case of districts located in Vermont, it shall include city school districts, town school districts, union school districts and incorporated school districts. Where appropriate, the term “member district clerk” shall refer to the clerk of the city in which a Vermont school district is located, the clerk of the town in which a Vermont town school district is located, or the clerk of an incorporated school district.

c. “Elementary school” shall mean a school which includes all grades from kindergarten or grade one through not less than grade six nor more than grade eight.

d. “Secondary school” shall mean a school which includes all grades beginning no lower than grade seven and no higher than grade twelve.

e. “Interstate board” shall refer to the board serving an interstate school district.

f. “New Hampshire board” shall refer to New Hampshire State Board of Education.

g. “Vermont board” shall refer to the Vermont State Board of Education.

h. “Commissioner” shall refer to the New Hampshire Commissioner of Education or the Vermont Secretary of Education, individually or collectively as appropriate. “State departments of education” shall refer collectively to the New Hampshire Department of Education and the Vermont Agency of Education.

i. Where joint action by both state boards is required, each state board shall deliberate and vote by its own majority, but shall separately reach the same result or take the same action as the other state board.

j. The terms “professional staff personnel” and “instructional staff personnel” shall include superintendents, assistant superintendents, administrative assistants, principals, guidance counselors, special education personnel, school nurses, therapists, teachers, and other licensed personnel.

k. The term “warrant” or “warning” to mean the same for both states.

(Added 1967, No. 243 (Adj. Sess.); amended 1989, No. 118, § 3; 2013, No. 92 (Adj. Sess.), § 93, eff. Feb. 14, 2014.)

§ 772 Procedure for formation of an interstate school district — Article II

A. Creation of Planning Committee. The New Hampshire and Vermont commissioners of education shall have the power, acting jointly to constitute and discharge one or more interstate school district planning committees. Each such planning committee shall consist of at least two voters from each of a group of two or more neighbouring member districts. One of the representatives from each member district shall be a member of its school board, whose term on the planning committee shall be concurrent with his or her term as a school board member. The term of each member of a planning committee who is not also a school board member shall expire on June thirtieth of the third year following his or her appointment. The existence of any planning committee may be terminated either by vote of a majority of its members or by joint action of the commissioners. In forming and appointing members to an interstate school district planning board, the commissioners shall consider and take into account recommendations and nominations made by school boards of member districts. No member of a planning committee shall be disqualified because he or she is at the same time a member of another planning board or committee created under the provisions of this compact or under any other provisions of law. Any existing informal interstate school planning committee may be reconstituted as a formal planning committee in accordance with the provisions hereof, and its previous deliberations adopted and ratified by the reorganized formal planning committee. Vacancies on a planning committee shall be filled by the commissioners acting jointly.

B. Operating Procedures of Planning Committee. Each interstate school district planning committee shall meet in the first instance at the call of any member, and shall organize by the election of a chairman and clerk-treasurer, each of whom shall be a resident of a different state. Subsequent meetings may be called by either officer of the committee. The members of the committee shall serve without pay. The member districts shall appropriate money on an equal basis at each annual meeting to meet the expenses of the committee, including the cost of publication and distribution of reports and advertising. From time to time the commissioners may add additional members and additional member districts to the committee, and may remove members and member districts from the committee. An interstate school district planning committee shall act by majority vote of its membership present and voting.

C. Duties of Interstate School District Planning Committee. It shall be the duty of an interstate school district planning committee, in consultation with the commissioners and the state departments of education: to study the advisability of establishing an interstate school district in accordance with the standards set forth in paragraph A of Article I of this compact, its organization, operation and control, and the advisability of constructing, maintaining and operating a school or schools to serve the needs of such interstate district; to estimate the construction and operating costs thereof; to investigate the methods of financing such school or schools, and any other matters pertaining to the organization and operation of an interstate school district; and to submit a report or reports of its findings and recommendations to the several member districts.

D. Recommendations and Preparation of Articles of Agreement. An interstate school district planning committee may recommend that an interstate school district composed of all the member districts represented by its membership, or any specified combination of such member districts, be established. If the planning committee does recommend the establishment of an interstate school district, it shall include in its report such recommendation, and shall also prepare and include in its report proposed articles of agreement for the proposed interstate school district, which shall be signed by at least a majority of the membership of the planning committee, which set forth the following:

a. The name of the interstate school district.

b. The member districts which shall be combined to form the proposed interstate school district.

c. The number, composition, method of selection and terms of office of the interstate school board, provided that:

(1) The interstate school board shall consist of an odd number of members, not less than five nor more than fifteen;

(2) The terms of office shall not exceed three years;

(3) Each member district shall be entitled to elect at least one member of the interstate school board. Each member district shall either vote separately at the interstate school district meeting by the use of a distinctive ballot, or shall choose its member or members at any other election at which school officials may be chosen;

(4) The method of election shall provide for the filing of candidacies in advance of election and for the use of a printed nonpartisan ballot;

(5) Subject to the foregoing, provision may be made for the election of one or more members at large.

d. The grades for which the interstate school district shall be responsible.

e. The specific properties of member districts to be acquired initially by the interstate school district and the general location of any proposed new schools to be initially established or constructed by the interstate school district.

f. The method of apportioning the operating expenses of the interstate school district among the several member districts, and the time and manner of payments of such shares.

g. The indebtedness of any member district which the interstate district is to assume.

h. The method of apportioning the capital expenses of the interstate school district among the several member districts, which need not be the same as the method of apportioning operating expenses, and the time and manner of payment of such shares. Capital expenses shall include the cost of acquiring land and buildings for school purposes; the construction, furnishing and equipping of school buildings and facilities; and the payment of the principal and interest of any indebtedness which is incurred to pay for the same.

i. The manner in which state aid, available under the laws of either New Hampshire or Vermont, shall be allocated, unless otherwise expressly provided in this compact or by the laws making such aid available.

j. The method by which the articles of agreement may be amended, which amendments may include the annexation of territory, or an increase or decrease in the number of grades for which the interstate district shall be responsible, provided that no amendment shall be effective until approved by both state boards in the same manner as required for approval of the original articles of agreement.

k. The date of operating responsibility of the proposed interstate school district and a proposed program for the assumption of operating responsibility for education by the proposed interstate school district, and any school construction; which the interstate school district shall have the power to vary by vote as circumstances may require.

l. Any other matters, not incompatible with law, which the interstate school district planning committee may consider appropriate to include in the articles of agreement, including, without limitation:

(1) The method of allocating the cost of transportation between the interstate district and member districts;

(2) The nomination of individual school directors to serve until the first annual meeting of the interstate school district.

E. Hearings. If the planning committee recommends the formation of an interstate school district, it shall hold at least one public hearing on its report and the proposed articles of agreement within the proposed interstate school district in New Hampshire, and at least one public hearing thereon within the proposed interstate school district in Vermont. The planning committee shall give such notice thereof as it may determine to be reasonable, provided that such notice shall include at least one publication in a newspaper of general circulation within the proposed interstate school district not less than 15 days (not counting the date of publication and not counting the date of the hearing) before the date of the first hearing. Such hearings may be adjourned from time to time and from place to place. The planning committee may revise the proposed articles of agreement after the date of the hearings. It shall not be required to hold further hearings on the revised articles of agreement but may hold one or more further hearings after notice similar to that required for the first hearings if the planning committee in its sole discretion determines that the revisions are so substantial in nature as to require further presentation to the public before submission to the state boards of education.

F. Approval by State Boards. After the hearings a copy of the proposed articles of agreement, as revised, signed by a majority of the planning committee, shall be submitted by it to each state board. The state boards may (a) if they find that the articles of agreement are in accord with the standards set forth in this compact and in accordance with sound educational policy, approve the same as submitted, or (b) refer them back to the planning committee for further study. The planning committee may make additional revisions to the proposed articles of agreement to conform to the recommendations of the state boards. Further hearings on the proposed articles of agreement shall not be required unless ordered by the state boards in their discretion. In exercising such discretion, the state boards shall take into account whether or not the additional revisions are so substantial in nature as to require further presentation to the public. If both state boards find that the articles of agreement as further revised are in accord with the standards set forth in this compact and in accordance with sound educational policy, they shall approve the same. After approval by both state boards, each state board shall cause the articles of agreement to be submitted to the school boards of the several member districts in each state for acceptance by the member districts as provided in the following paragraph. At the same time, each state board shall designate the form of warrant, date, time, place, and period of voting for the special meeting of the member district to be held in accordance with the following paragraph.

G. Adoption by Member Districts. Upon receipt of written notice from the state board in its state of the approval of the articles of agreement by both state boards, the school board of each member district shall cause the articles of agreement to be filed with the member district clerk. Within ten days after receipt of such notice, the school board shall issue its warrant for a special meeting of the member district, the warrant to be in the form, and the meeting to be held at the time and place and in the manner prescribed by the state board. No approval of the superior court shall be required for such special school district meeting in New Hampshire. Voting shall be with the use of the check list by a ballot substantially in the following form:

“Shall the school district accept the provisions of the New Hampshire-Vermont Interstate School Compact providing for the establishment of an interstate school district, together with the school districts of ............... and ............... , etc., in accordance with the provisions of the proposed articles of agreement filed with the school district (town, city or incorporated school district) clerk?”

Yes ( ) No ( )

If the articles of agreement included the nomination of individual school directors, those nominated from each member district shall be included in the ballot and voted upon, such election to become effective upon the formation of an interstate school district.

If a majority of the voters present and voting in a member district vote in the affirmative, the clerk for such member district shall forthwith send to the state board in its state a certified copy of the warrant, certificate of posting, and minutes of the meeting of the district. If the state boards of both states find that a majority of the voters present and voting in each member district have voted in favor of the establishment of the interstate school district, they shall issue a joint certificate to that effect; and such certificate shall be conclusive evidence of the lawful organization and formation of the interstate school district as of its date of issuance.

H. Resubmission. If the proposed articles of agreement are adopted by one or more of the member districts but rejected by one or more of the member districts, the state boards may resubmit them, in the same form as previously submitted, to the rejecting member districts, in which case the school boards thereof shall resubmit them to the voters in accordance with paragraph G of this article. An affirmative vote in accordance therewith shall have the same effect as though the articles of agreement had been adopted in the first instance. In the alternative, the state boards may either (a) discharge the planning committee, or (b) refer the articles of agreement back for further consideration to the same or a reconstituted planning committee, which shall have all of the powers and duties as the planning committee as originally constituted.

(Added 1967, No. 243 (Adj. Sess.).)

§ 773 Powers of interstate school districts—Article III

A. Powers. Each interstate school district shall be a body corporate and politic, with power:

a. To acquire, construct, extend, improve, staff, operate, manage and govern public schools within its boundaries;

b. To sue and be sued, subject to the limitations of liability hereinafter set forth;

c. To have a seal and alter the same at pleasure;

d. To adopt, maintain and amend bylaws not inconsistent with this compact, and the laws of the two states;

e. To acquire by purchase, condemnation, lease or otherwise, real and personal property for the use of its schools;

f. To enter into contracts and incur debts;

g. To borrow money for the purposes hereinafter set forth, and to issue its bonds or notes therefor;

h. To make contracts with and accept grants and aid from the United States, the State of New Hampshire, the State of Vermont, any agency or municipality thereof, and private corporations and individuals for the construction, maintenance, reconstruction, operation and financing of its schools; and to do any and all things necessary in order to avail itself of such aid and cooperation;

i. To employ such assistants, agents, servants, and independent contractors as it shall deem necessary or desirable for its purposes; and

j. To take any other action which is necessary or appropriate in order to exercise any of the foregoing powers.

(Added 1967, No. 243 (Adj. Sess.).)

§ 774 District meetings—Article IV

A. General. Votes of the district shall be taken at a duly warned meeting held at any place in the district, at which all of the eligible legal voters of the member districts shall be entitled to vote, except as otherwise provided with respect to the election of directors.

B. Eligibility of Voters. Any resident who would be eligible to vote at a meeting of a member district being held at the same time, shall be eligible to vote at a meeting of the interstate district. The board of civil authority in each Vermont member district and the supervisors of the check list of each New Hampshire district shall respectively prepare a check list of eligible voters for each meeting of the interstate district in the same manner, and they shall have all the same powers and duties with respect to eligibility of voters in their districts as for a meeting of a member district.

C. Warning of Meetings. A meeting shall be warned by a warrant addressed to the residents of the interstate school district qualified to vote in district affairs, stating the time and place of the meeting and the subject matter of the business to be acted upon. The warrant shall be signed by the clerk and by a majority of the directors. Upon written application of ten or more voters in the district, presented to the directors or to one of them, at least 25 days before the day prescribed for an annual meeting, the directors shall insert in their warrant for such meeting any subject matter specified in such application.

D. Posting and Publication of Warrant. The directors shall cause an attested copy of the warrant to be posted at the place of meeting, and a like copy at a public place in each member district at least 20 days (not counting the date of posting and the date of meeting) before the date of the meeting. In addition, the directors shall cause the warrant to be advertised in a newspaper of general circulation on at least one occasion, such publication to occur at least ten days (not counting the date of publication and not counting the date of the meeting) before the date of the meeting. Although no further notice shall be required, the directors may give such further notice of the meeting as they in their discretion deem appropriate under the circumstances.

E. Return of Warrant. The warrant with a certificate thereon, verified by oath, stating the time and place when and where copies of the warrant were posted and published, shall be given to the clerk of the interstate school district at or before the time of the meeting, and shall be recorded by him in the records of the interstate school district.

F. Organization Meeting. The commissioners, acting jointly, shall fix a time and place for a special meeting of the qualified voters within the interstate school district for the purpose of organization, and shall prepare and issue the warrant for the meeting after consultation with the interstate school district planning board and the members-elect, if any, of the interstate school board of directors. Such meeting shall be held within 60 days after the date of issuance of the certificate of formation, unless the time is further extended by the joint action of the state boards. At the organization meeting the commissioner of education of the state where the meeting is held, or his or her designate, shall preside in the first instance, and the following business shall be transacted:

a. A temporary moderator and a temporary clerk shall be elected from among the qualified voters who shall serve until a moderator and clerk respectively have been elected and qualified.

b. A moderator, a clerk, a treasurer, and three auditors shall be elected to serve until the next annual meeting and thereafter until their successors are elected and qualified. Unless previously elected, a board of school directors shall be elected to serve until their successors are elected and qualified.

c. The date for the annual meeting shall be established.

d. Provision shall be made for the payment of any organizational or other expense incurred on behalf of the district before the organization meeting, including the cost of architects, surveyors, contractors, attorneys, and educational or other consultants or experts.

e. Any other business, the subject matter of which has been included in the warrant, and which the voters would have had power to transact at an annual meeting.

G. Annual Meetings. An annual meeting of the district shall be held between January fifteenth and June first of each year at such time as the interstate district may by vote determine. Once determined, the date of the annual meeting shall remain fixed until changed by vote of the interstate district at a subsequent annual or special meeting. At each annual meeting the following business shall be transacted:

a. Necessary officers shall be elected.

b. Money shall be appropriated for the support of the interstate district schools for the fiscal year beginning the following July first.

c. Such other business as may properly come before the meeting.

H. Special Meetings. A special meeting of the district shall be held whenever, in the opinion of the directors, there is occasion therefor, or whenever written application shall have been made by five percent or more of the voters (based on the check lists as prepared for the last preceding meeting) setting forth the subject matter upon which such action is desired. A special meeting may appropriate money without compliance with RSA 33:8 or RSA 197:3 which would otherwise require the approval of the New Hampshire superior court.

I. Certification of Records. The clerk of an interstate school district shall have the power to certify the record of the votes adopted at an interstate school district meeting to the respective commissioners and state boards and (where required) for filing with a secretary of state.

J. Method of Voting at School District Meetings. Voting at meetings of interstate school districts shall take place as follows:

a. School Directors. A separate ballot shall be prepared for each member district, listing the candidates for interstate school director to represent such member district; and any candidates for interstate school director at large; and the voters of each member district shall register on a separate ballot their choice for the office of school director or directors. In the alternative, the articles of agreement may provide for the election of school directors by one or more of the member districts at an election otherwise held for the choice of school or other municipal officers.

b. Other Votes. Except as otherwise provided in the articles of agreement or this compact, with respect to all other votes (1) the voters of the interstate school district shall vote as one body irrespective of the member districts in which they are resident, and (2) a simple majority of those present and voting at any duly warned meeting shall carry the vote. Voting for officers to be elected at any meeting, other than school directors, shall be by ballot or voice, as the interstate district may determine, either in its articles of agreement or by a vote of the meeting.

(Added 1967, No. 243 (Adj. Sess.).)

§ 775 Officers—Article V

A. Officers: General. The officers of an interstate school district shall be a board of school directors, a chairman of the board, a vice-chairman of the board, a secretary of the board, a moderator, a clerk, a treasurer and three auditors. Except as otherwise specifically provided, they shall be eligible to take office immediately following their election; they shall serve until the next annual meeting of the interstate district and until their successors are elected and qualified. Each shall take oath for the faithful performance of his or her duties before the moderator, or a notary public or a justice of the peace of the state in which the oath is administered. Their compensation shall be fixed by vote of the district. No person shall be eligible to any district office unless he or she is a voter in the district. A custodian, school teacher, principal, superintendent or other employee of an interstate district acting as such shall not be eligible to hold office as a school director.

B. Board of Directors.

a. How Chosen. Each member district shall be represented by at least one resident on the board of school directors of an interstate school district. A member district shall be entitled to such further representation on the interstate board of school directors as provided in the articles of agreement as amended from time to time. The articles of agreement as amended from time to time may provide for school directors at large, as above set forth. No person shall be disqualified to serve as a member of an interstate board because he or she is at the same time a member of the school board of a member district.

b. Term. Interstate school directors shall be elected for terms in accordance with the articles of agreement.

c. Duties of Board of Directors. The board of school directors of an interstate school district shall have and exercise all of the powers of the district not reserved herein to the voters of the district.

d. Organization. The clerk of the district shall warn a meeting of the board of school directors to be held within ten days following the date of the annual meeting, for the purpose of organizing the board, including the election of its officers.

C. Chairman of the Board. The chairman of the board of interstate school directors shall be elected by the interstate board from among its members at its first meeting following the annual meeting. The chairman shall preside at the meetings of the board and shall perform such other duties as the board may assign to him.

D. Vice-Chairman of the Board of Directors. The vice-chairman of the interstate board shall be elected in the same manner as the chairman. He shall represent a member district in a state other than that represented by the chairman. He shall preside in the absence of the chairman and shall perform such other duties as may be assigned to him or her by the interstate board.

E. Secretary of the Board. The secretary of the interstate board shall be elected in the same manner as the chairman. Instead of electing one of its members, the interstate board may appoint the interstate district clerk to serve as secretary of the board in addition to his or her other duties. The secretary of the interstate board (or the interstate district clerk, if so appointed) shall keep the minutes of its meetings, shall certify its records, and perform such other duties as may be assigned to him or her by the board.

F. Moderator. The moderator shall preside at the district meetings, regulate the business thereof, decide questions of order, and make a public declaration of every vote passed. He may prescribe rules of procedure; but such rules may be altered by the district. He may administer oaths to district officers in either state.

G. Clerk. The clerk shall keep a true record of all proceedings at each district meeting, shall certify its records, shall make an attested copy of any records of the district for any person upon request and tender of reasonable fees therefor, if so appointed, shall serve as secretary of the board of school directors, and shall perform such other duties as may be required by custom or law.

H. Treasurer. The treasurer shall have custody of all of the monies belonging to the district and shall pay out the same only upon the order of the interstate board. He shall keep a fair and accurate account of all sums received into and paid from the interstate district treasury, and at the close of each fiscal year he or she shall make a report to the interstate district, giving a particular account of all receipts and payments during the year. He shall furnish to the interstate directors, statements from his or her books and submit his or her books and vouchers to them and to the district auditors for examination whenever so requested. He or she shall make all returns called for by laws relating to school districts. Before entering on his or her duties, the treasurer shall give a bond with sufficient sureties and in such sum as the directors may require. The treasurer’s term of office is from July 1 to the following June 30.

I. Auditors. At the organization meeting of the district, three auditors shall be chosen, one to serve for a term of one year, one to serve for a term of two years, and one to serve for a term of three years. After the expiration of each original term, the successor shall be chosen for a three year term. At least one auditor shall be a resident of New Hampshire, and one auditor shall be a resident of Vermont. An interstate district may vote to employ a certified public accountant to assist the auditors in the performance of their duties. The auditors shall carefully examine the accounts of the treasurer and the directors at the close of each fiscal year, and at such other times whenever necessary, and report to the district whether the same are correctly cast and properly vouched.

J. Superintendent. The superintendent of schools shall be selected by a majority vote of the board of school directors of the interstate district with the approval of both commissioners.

K. Vacancies. Any vacancy among the elected officers of the district shall be filled by the interstate board until the next annual meeting of the district or other election, when a successor shall be elected to serve out the remainder of the unexpired term, if any. Until all vacancies on the interstate board are filled, the remaining members shall have full power to act.

(Added 1967, No. 2 43 (Adj. Sess.).)

§ 776 Appropriation and apportionment of funds—Article VI

A. Budget. Before each annual meeting, the interstate board shall prepare a report of expenditures for the preceding fiscal year, an estimate of expenditures for the current fiscal year, and a budget for the succeeding fiscal year.

B. Appropriation. The interstate board of directors shall present the budget report of the annual meeting. The interstate district shall appropriate a sum of money for the support of its schools and for the discharge of its obligations for the ensuing fiscal year.

C. Apportionment of Appropriation. Subject to the provisions of article VII hereof, the interstate board shall first apply against such appropriation any income to which the interstate district is entitled, and shall then apportion the balance among the member districts in accordance with one of the following formulas as determined by the articles of agreement as amended from time to time:

a. All of such balance to be apportioned on the basis of the ratio that the fair market value of the taxable property in each member district bears to that of the entire interstate district; or

b. All of such balance to be apportioned on the basis that the average daily resident membership for the preceding fiscal year of each member district bears to that of the average daily resident membership of the entire interstate school district; or

c. A formula based on any combination of the foregoing factors. The term “fair market value of taxable property” shall mean the last locally assessed valuation of a member district in New Hampshire, as last equalized by the New Hampshire state tax commission.

The term “fair market value of taxable property” shall mean the equalized grand list of a Vermont member district, as determined by the Vermont department of taxes.

Such assessed valuation and grand list may be further adjusted (by elimination of certain types of taxable property from one or the other or otherwise) in accordance with the articles of agreement, in order that the fair market value of taxable property in each state shall be comparable.

“Average daily resident membership” of the interstate district in the first instance shall be the sum of the average daily resident membership of the member districts in the grades involved for the preceding fiscal year where no students were enrolled in the interstate district schools for such preceding fiscal year.

D. Share of New Hampshire Member District. The interstate board shall certify the share of a New Hampshire member district of the total appropriation to the school board of each member district which shall add such sum to the amount appropriated by the member district itself for the ensuing year and raise such sum in the same manner as though the appropriation had been voted at a school district meeting of the member district. The interstate district shall not set up its own capital reserve funds; but a New Hampshire member district may set up a capital reserve fund in accordance with RSA 35, to be turned over to the interstate district in payment of the New Hampshire member district’s share of any anticipated obligations.

E. Share of Vermont Member District. The interstate board shall certify the share of a Vermont member district of the total appropriation to the school board of each member district which shall add such sum to the amount appropriated by the member district itself for the ensuing year and raise such sum in the same manner as though the appropriation had been voted at a school district meeting of the member district.

(Added 1967, No. 243 (Adj. Sess.).)

§ 777 Borrowing—Article VII

A. Interstate District Indebtedness. Indebtedness of an interstate district shall be a general obligation of the district and shall also be a joint and several general obligation of each member district, except that such obligations of the district and its member districts shall not be deemed indebtedness of any member district for the purposes of determining its borrowing capacity under New Hampshire or Vermont law. A member district which withdraws from an interstate district shall remain liable for indebtedness of the interstate district which is outstanding at the time of withdrawal and shall be responsible for paying its share of such indebtedness to the same extent as though it had not been withdrawn.

B. Temporary Borrowing. The interstate board may authorize the borrowing of money by the interstate district (1) in anticipation of payments of operating and capital expenses by the member districts to the interstate districts and (2) in anticipation of the issue of bonds or notes of the interstate district which have been authorized for the purpose of financing capital projects. Such temporary borrowing shall be evidenced by interest bearing or discounted notes of the interstate district. The amount of notes issued in any fiscal year in anticipation of expense payments shall not exceed the amount of such payments received by the interstate district in the preceding fiscal year. Notes issued under this paragraph shall be payable within one year in the case of notes under clause (1) and three years in the case of notes under clause (2) from their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes, provided that the period from the date of an original note to the maturity of any note issued to renew or pay the same debt shall not exceed the maximum period permitted for the original loan.

C. Borrowing for Capital Projects. An interstate district may incur debt and issue its bonds or notes to finance capital projects. Such projects may consist of the acquisition or improvement of land and buildings for school purposes, the construction, reconstruction, alteration, or enlargement of school buildings and related school facilities, the acquisition of equipment of a lasting character and the payment of judgments. No interstate district may authorize indebtedness in excess of ten percent of the total fair market value of taxable property in its member districts as defined in article VI of this compact. The primary obligation of the interstate district to pay indebtedness of member districts shall not be considered indebtedness of the interstate district for the purpose of determining its borrowing capacity under this paragraph. Bonds or notes issued under this paragraph shall mature in equal or diminishing installments of principal payable at least annually commencing no later than two years and ending not later than thirty years after their dates.

D. Authorization Proceedings. An interstate district shall authorize the incurring of debts to finance capital projects by a majority vote of the district passed at an annual or special district meeting. Such vote shall be taken by secret ballot after full opportunity for debate, and any such vote shall be subject to reconsideration and further action by the district at the same meeting or at an adjourned session thereof. As an alternative, an interstate district may provide in its articles of agreement that such a vote be conducted by Australian or official balloting under procedures as set forth in the articles of agreement, and that such vote be subject to any method of reconsideration, if any, the interstate district sets forth in the articles of agreement.

E. Sale of Bonds and Notes. Bonds and notes which have been authorized under this article may be issued from time to time and shall be sold at not less than par and accrued interest at public or private sale by the chairman of the school board and by the treasurer. Interstate district bonds and notes shall be signed by the said officers, except that either one of the two required signatures may be a facsimile. Subject to this compact and the authorizing vote, they shall be in such form, bear such rates of interest and mature at such times as the said officers may determine. Bonds shall, but notes need not, bear the seal of the interstate district, or a facsimile of such seal. Any bonds or notes of the interstate district which are properly executed by the said officers shall be valid and binding according to their terms notwithstanding that before the delivery thereof such officers may have ceased to be officers of the interstate district.

F. Proceeds of Bonds. Any accrued interest received upon delivery of bonds or notes of an interstate district shall be applied to the payment of the first interest which becomes due thereon. The other proceeds of the sale of such bonds or notes, other than temporary notes, including any premiums, may be temporarily invested by the interstate district pending their expenditure; and such proceeds, including any income derived from the temporary investment of such proceeds, shall be used to pay the costs of issuing and marketing the bonds or notes and to meet the operating expenses or capital expenses in accordance with the purposes for which the bonds or notes were issued or, by proceedings taken in the manner required for the authorization of such debt, for other purposes for which such debt could be incurred. No purchaser of any bonds or notes of an interstate district shall be responsible in any way to see to the application of the proceeds thereof.

G. State Aid Programs. As used in this paragraph the term “initial aid” shall include New Hampshire and Vermont financial assistance with respect to a capital project, or the means of financing a capital project, which is available in connection with construction costs of a capital project or which is available at the time indebtedness is incurred to finance the project. Without limiting the generality of the foregoing definition, initial aid shall specifically include a New Hampshire state guarantee under RSA 195-B with respect to bonds or notes and Vermont construction aid under chapter 123 of this title. As used in this paragraph the term “long-term aid” shall include New Hampshire and Vermont financial assistance which is payable periodically in relation to capital costs incurred by an interstate district. Without limiting the generality of the foregoing definition, long-term aid shall specifically include New Hampshire school building aid under RSA 198 and Vermont school building aid under chapter 123 of this title. For the purpose of applying for, receiving and expending initial aid and long-term aid an interstate district shall be deemed a native school district by each state, subject to the following provisions. When an interstate district has appropriated money for a capital project, the amount appropriated shall be divided into a New Hampshire share and a Vermont share in accordance with the capital expense apportionment formula in the articles of agreement as though the total amount appropriated for the project was a capital expense requiring apportionment in the year the appropriation is made. New Hampshire initial aid shall be available with respect to the amount of the New Hampshire share as though it were authorized indebtedness of a New Hampshire cooperative school district. In the case of a state guarantee of interstate district bonds or notes under RSA 195-B, the interstate district shall be eligible to apply for and receive an unconditional state guarantee with respect to an amount of its bonds or notes which does not exceed 50 percent of the amount of the New Hampshire share as determined above. Vermont initial aid shall be available with respect to the amount of the Vermont share as though it were funds voted by a Vermont school district. Payments of Vermont initial aid shall be made to the interstate district, and the amount of any borrowing authorized to meet the appropriation for the capital project shall be reduced accordingly. New Hampshire and Vermont long-term aid shall be payable to the interstate district. The amounts of long-term aid in each year shall be based on the New Hampshire and Vermont shares of the amount of indebtedness of the interstate district which is payable in that year and which has been apportioned in accordance with the capital expense apportionment formula in the articles of agreement. The New Hampshire aid shall be payable at the rate of forty-five percent, if there are three or less New Hampshire members in the interstate district, and otherwise it shall be payable as though the New Hampshire members were a New Hampshire cooperative school district. New Hampshire and Vermont long-term aid shall be deducted from the total capital expenses for the fiscal year in which the long-term aid is payable, and the balance of such expenses shall be apportioned among the member districts. Notwithstanding the foregoing provisions, New Hampshire and Vermont may at any time change their state school aid programs that are in existence when this compact takes effect and may establish new programs, and any legislation for these purposes may specify how such programs shall be applied with respect to interstate districts. Notwithstanding the foregoing, the respective amounts of New Hampshire and Vermont initial and long-term aid, with respect to a capital project of the Dresden School District for which indebtedness is authorized by a vote of the District after July 1, 1977, shall be initially determined for each year for each member district by the manner provided in this paragraph and the aid shall be paid to the Dresden School District, however, the amount of aid for those capital projects received by the Dresden School District on account of each member district shall be used by the district to reduce the sums which would otherwise be required to be raised by taxation within that member district.

H. Tax Exemption. Bonds and notes of an interstate school district shall be exempt from local property taxes in both states, and the interest or discount thereon and any profit derived from the disposition thereof shall be exempt from personal income taxes in both states.

I. Notwithstanding paragraph G of this Article, initial and longterm aid may be allocated among the members of an interstate district other than the Dresden School District in the manner which is provided in the articles of agreement of that district, or if not therein provided, in the manner specified in paragraph G for all interstate districts other than the Dresden School District.

(Added 1967, No. 243 (Adj. Sess.); amended 1977, No. 65, §§ 1, 2; 2001, No. 63, § 176a.)

§ 778 Taking over of existing property—Article VIII

A. Power to Acquire Property of Member District. The articles of agreement, or an amendment thereof, may provide for the acquisition by an interstate district from a member district of all or a part of its existing plant and equipment.

B. Valuation. The articles of agreement, or the amendment, shall provide for the determination of the value of the property to be acquired in one or more of the following ways:

a. A valuation set forth in the articles of agreement or the amendment.

b. By appraisal, in which case, one appraiser shall be appointed by each commissioner, and a third appraiser appointed by the first two appraisers.

C. Reimbursement to Member District. The articles of agreement shall specify the method by which the member district shall be reimbursed by the interstate district for the property taken over, in one or more of the following ways:

a. By one lump sum, appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

b. In installments over a period of not more than twenty years, each of which is appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

c. By an agreement to assume or reimburse the member district for all principal and interest on any outstanding indebtedness originally incurred by the member district to finance the acquisition and improvement of the property, each such installment to be appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

The member district transferring the property shall have the same obligation to pay to the interstate district its share of the cost of such acquisition, but may offset its right to reimbursement.

(Added 1967, No. 243 (Adj. Sess.).)

§ 779 Amendments to articles of agreement—Article IX

A. Amendments to the articles of agreement shall be adopted in the manner provided in the articles of agreement, and if no such provision is made in the articles of agreement then amendments shall be adopted by the affirmative vote of two-thirds of those present and voting at an interstate district meeting, except that:

a. If the amendment proposes the addition of a new member district, the amendment shall be adopted in the same manner provided for the adoption of the original articles of agreement, provided that the planning committee shall consist of all of the members of the interstate district board of directors and all of the members of the school board of the proposed new member district or districts, and provided that the amendment shall be submitted to the voters of the interstate district, the affirmative vote of two-thirds of those present and voting at an interstate district meeting being required for approval of the amendment. The articles of agreement together with the proposed amendment shall then be submitted to the voters of the proposed new member district or districts, and an affirmative vote of a simple majority of those present and voting at each district meeting shall be required for approval of the amendment.

b. No amendment to the articles of agreement may impair the rights of bond or note holders or the power of the interstate district to procure the means for their payment.

c. Amendments to the articles of agreement of the Dresden School District shall be adopted in the following manner: (1) an amendment shall be initially approved upon the affirmative vote of a simple majority of those voters of the Dresden School District who are present and voting at a meeting called for such purpose, (2) the amendment initially approved by the voters of the Dresden School District shall become final and effective upon the expiration of thirty days after the date of that vote, unless a petition is duly filed within that thirty day period and the amendment is subsequently not approved by the voters of a member district in accordance with the procedure specified in clause (3), (3) if a petition, valid under applicable state law, is filed before the expiration of that thirty-day period with the clerk of any school district which is a member of the Dresden School District, which petition requires the calling of a special meeting of that member district for the purpose of considering the approval of the amendment initially adopted by the voters of the Dresden School District, then the board of school directors of that member district shall thereupon call a special meeting of that district for that purpose, (4) if the amendment as initially approved by the voters of the Dresden School District is approved by more than forty percent of the voters present and voting at the meeting of each member district in which a petition was filed under this section, then the amendment as initially adopted shall become final and effective upon the vote of that member district last to vote. If the amendment as initially approved by the voters of the Dresden School District is not so approved by more than forty percent of the voters present and voting at the meeting of any one member district, then the amendment shall be null and void and of no effect.

(Added 1967, No. 243 (Adj. Sess.); amended 1977, No. 65, § 3.)

§ 780 Applicability of New Hampshire laws—Article X

A. General School Laws. With respect to the operation and maintenance of any school of the district located in New Hampshire, the provisions of New Hampshire law shall apply except as otherwise provided in this compact and except that the powers and duties of the school board shall be exercised and discharged by the interstate board and the powers and duties of the union superintendent shall be exercised and discharged by the interstate district superintendent.

B. New Hampshire State Aid. A New Hampshire school district shall be entitled to receive an amount of state aid for operating expenditures as though its share of the interstate district’s expenses were the expenses of the New Hampshire member district, and as though the New Hampshire member district pupils attending the interstate school were attending a New Hampshire cooperative school district’s school. The state aid shall be paid to the New Hampshire member school district to reduce the sums which would otherwise be required to be raised by taxation within the member district.

C. Continued Existence of the New Hampshire Member School District. A New Hampshire member school district shall continue in existence, and shall have all of the powers and be subject to all of the obligations imposed by law and not herein delegated to the interstate district. If the interstate district incorporates only a part of the schools in the member school district, then the school board of the member school district shall continue in existence and it shall have all of the powers and be subject to all of the obligations imposed by law on it and not herein delegated to the district. However, if all of the schools in the member school district are incorporated into the interstate school district, then the member or members of the interstate board representing the member district shall have all of the powers and be subject to all of the obligations imposed by law on the members of a school board for the member district and not herein delegated to the interstate district. The New Hampshire member school district shall remain liable on its existing indebtedness; and the interstate school district shall not become liable therefor, unless the indebtedness is specifically assumed in accordance with the articles of agreement. Any trust funds or capital reserve funds and any property not taken over by the interstate district shall be retained by the New Hampshire member district and held or disposed of according to law. If all of the schools in a member district are incorporated into an interstate district, then no annual meeting of the member district shall be required unless the members of the interstate board from the member district shall determine that there is occasion for such an annual meeting.

D. Suit and Service of Process in New Hampshire. The courts of New Hampshire shall have the same jurisdiction over the district as though a New Hampshire member district were a party instead of the interstate district. The service necessary to institute suit in New Hampshire shall be made on the district by leaving a copy of the writ or other proceedings in hand or at the last and usual place of abode of one of the directors who reside in New Hampshire, and by mailing a like copy to the clerk and to one other director by certified mail with return receipt requested.

E. Employment. Each employee of an interstate district assigned to a school located in New Hampshire shall be considered an employee of a New Hampshire school district for the purpose of the New Hampshire teachers’ retirement system, the New Hampshire state employees’ retirement system, the New Hampshire workers’ compensation law and any other law relating to the regulation of employment or the provision of benefits for employees of New Hampshire school districts except as follows:

  1. A teacher in a New Hampshire member district may elect to remain a member of the New Hampshire teachers’ retirement system, even though assigned to teach in an interstate school in Vermont.

  2. Employees of interstate districts designated as professional or instructional staff members, as defined in article I hereof, may elect to participate in the teachers’ retirement system of either the State of New Hampshire or the State of Vermont but in no case will they participate in both retirement systems simultaneously.

  3. It shall be the duty of the superintendent in an interstate district to: (a) advise teachers and other professional staff employees contracted for the district about the terms of the contract and the policies and procedure of the retirement systems; (b) see that each teacher or professional staff employee selects the retirement system of his or her choice at the time his or her contract is signed; (c) provide the commissioners of education in New Hampshire and in Vermont with the names and other pertinent information regarding each staff member under his or her jurisdiction so that each may be enrolled in the retirement system of his or her preference.

(Added 1967, No. 243 (Adj. Sess.); amended 1981, No. 185 (Adj. Sess.), § 1.)

§ 781 Applicability of Vermont laws—Article XI

A. General School Laws. With respect to the operation and maintenance of any school of the district located in Vermont, the provisions of Vermont law shall apply except as otherwise provided in this compact and except that the powers and duties of the school board shall be exercised and discharged by the interstate board and the powers and duties of the union superintendent shall be exercised and discharged by the interstate district superintendent.

B. Vermont State Aid. A Vermont school district shall be entitled to receive such amount of State aid for operating expenditures as though its share of the interstate district’s expenses were the expenses of the Vermont member district, and as though the Vermont member district pupils attending the interstate schools were attending a Vermont union school district’s schools. Such State aid shall be paid to the Vermont member school district to reduce the sums which would otherwise be required to be raised by taxation within the member district.

C. Continued Existence of Vermont Member School District. A Vermont member school district shall continue in existence, and shall have all of the powers and be subject to all of the obligations imposed by law and not herein delegated to the interstate district. If the interstate district incorporates only a part of the schools in the member school district, then the school board of the member school district shall continue in existence and it shall have all of the powers and be subject to all of the obligations imposed by law on it and not herein delegated to the district. However, if all of the schools in the member school district are incorporated into the interstate school district, then the member or members of the interstate board representing the member district shall have all of the powers and be subject to all of the obligations imposed by law on the members of a school board for the member district and not herein delegated to the interstate district. The Vermont member school district shall remain liable on its existing indebtedness; and the interstate school district shall not become liable therefor. Any trust funds and any property not taken over shall be retained by the Vermont member school district and held or disposed of according to law.

D. Suit and Service of Process in Vermont. The courts of Vermont shall have the same jurisdiction over the districts as though a Vermont member district were a party instead of the interstate district. The service necessary to institute suit in Vermont shall be made on the district by serving one of the directors who resides in Vermont, and by mailing a like copy to the clerk and to one other director by certified mail with return receipt requested.

E. Employment. Each employee of an interstate district assigned to a school located in Vermont shall be considered an employee of a Vermont school district for the purpose of the State Teachers’ Retirement System of Vermont, the State Employees’ Retirement System, the Vermont workers’ compensation law, and any other law relating to the regulation of employment or the provision of benefits for employees of Vermont school districts except as follows:

  1. A teacher in a Vermont member district may elect to remain a member of the State Teachers’ Retirement System of Vermont, even though assigned to teach in an interstate school in New Hampshire.

  2. Employees of interstate districts designated as professional or instructional staff members, as defined in article I hereof, may elect to participate in the teachers’ retirement system of either the State of Vermont or the State of New Hampshire but in no case will they participate in both retirement systems simultaneously.

  3. It shall be the duty of the superintendent in an interstate district to: (a) advise teachers and other professional staff employees contracted for the district about the terms of the contract and the policies and procedures of the retirement system; (b) see that each teacher or professional staff employee selects the retirement system of his choice at the time his contract is signed; (c) provide the commissioners of education in New Hampshire and in Vermont with the names and other pertinent information regarding each staff member under his jurisdiction so that each may be enrolled in the retirement system of his preference.

(Added 1967, No. 243 (Adj. Sess.); amended 1971, No. 185 (Adj. Sess.), § 183, eff. March 29, 1972; 1981, No. 165 (Adj. Sess.), § 1.)

§ 782 Adoption of compact by Dresden School District—Article XII

The Dresden School District, otherwise known as the Hanover-Norwich Interstate School District, authorized by New Hampshire laws of 1961, chapter 116, and by the laws of Vermont, is hereby authorized to adopt the provisions of this compact and to become an interstate school district within the meaning hereof, upon the following conditions and subject to the following limitations:

a. Articles of agreement shall be prepared and signed by a majority of the directors of the interstate school district.

b. The articles of agreement shall be submitted to an annual or special meeting of the Dresden district for adoption.

c. An affirmative vote of two-thirds of those present and voting shall be required for adoption.

d. Nothing contained therein, or in this compact, as it affects the Dresden School District shall affect adversely the rights of the holders of any bonds or other evidences of indebtedness then outstanding, or the rights of the district to procure the means for payment thereof previously authorized.

e. The corporate existence of the Dresden School District shall not be terminated by such adoption of articles of amendment, but shall be deemed to be so amended that it shall thereafter be governed by the terms of this compact.

(Added 1967, No. 243 (Adj. Sess.).)

§ 783 Miscellaneous provisions—Article XIII

A. Studies. Insofar as practicable, the studies required by the laws of both states shall be offered in an interstate school district.

B. Textbooks. Textbooks and scholar’s supplies shall be provided at the expense of the interstate district for pupils attending its schools.

C. Transportation. The allocation of the cost of transportation in an interstate school district, as between the interstate district and the member districts, shall be determined by the articles of agreement.

D. Location of Schoolhouses. In any case where a new schoolhouse or other school facility is to be constructed or acquired, the interstate board shall first determine whether it shall be located in New Hampshire or in Vermont. If it is to be located in New Hampshire, RSA 199, relating to schoolhouses, shall apply. If it is to be located in Vermont, the Vermont law relating to schoolhouses shall apply.

E. Fiscal Year. The fiscal year of each interstate district shall begin on July first of each year and end on June thirtieth of the following year.

F. Immunity from Tort Liability. Notwithstanding the fact that an interstate district may derive income from operating profit, fees, rentals, and other services, it shall be immune from suit and from liability for injury to persons or property and for other torts caused by it or its agents, servants or independent contractors, except insofar as it may have undertaken such liability under RSA 281:7 relating to workers’ compensation, or RSA 412:3 relating to the procurement of liability insurance by a governmental agency and except insofar as it may have undertaken such liability under 21 V.S.A. § 621 relating to workers’ compensation or 29 V.S.A. § 1403 relating to the procurement of liability insurance by a governmental agency.

G. Administrative Agreement Between Commissioners of Education. The commissioners of education of New Hampshire and Vermont may enter into one or more administrative agreements prescribing the relationship between the interstate districts, member districts, and each of the two state departments of education, in which any conflicts between the two states in procedure, regulations, and administrative practices may be resolved.

H. Amendments. Neither state shall amend its legislation or any agreement authorized thereby without the consent of the other in such manner as to substantially adversely affect the rights of the other state or its people hereunder, or as to substantially impair the rights of the holders of any bonds or notes or other evidences of indebtedness then outstanding or the rights of an interstate school district to procure the means for payment thereof. Subject to the foregoing, any reference herein to other statutes of either state shall refer to such statute as it may be amended or revised from time to time.

I. Separability. If any of the provisions of this compact, or legislation enabling the same, shall be held invalid or unconstitutional in relation to any of the applications thereof, such invalidity or unconstitutionality shall not affect other applications thereof or other provisions thereof; and to this end the provisions of this compact are declared to be severable.

J. Inconsistency of Language. The validity of this compact shall not be affected by any insubstantial differences in its form or language as adopted by the two states.

(Added 1967, No. 243 (Adj. Sess.); amended 1981, No. 165 (Adj. Sess.), § 1.)

§ 784 Effective date—Article XIV

This compact shall become effective when passed by the Vermont General Assembly, signed by the Governor and approved by the United States Congress.

(Added 1967, No. 243 (Adj. Sess.).)

Chapter 17 New York-Vermont Interstate School Compact

§ 791 General Provision—Article I

A. Statement of policy. It is the purpose of this compact to increase the educational opportunities within the states of New York and Vermont by encouraging the formation of interstate school districts which will each be a natural social and economic region with adequate financial resources and a number of pupils sufficient to permit the efficient use of school facilities within the interstate district and to provide improved instruction. The state boards of education of New York and Vermont may formulate and adopt additional standards consistent with this purpose and with these standards; and the formation of any interstate school district and the adoption of its articles of agreement shall be subject to the approval of both state boards as hereinafter set forth.

B. Requirement of congressional approval. This compact shall not become effective until approved by the United States Congress.

C. Definitions. The terms used in this compact shall be construed as follows, unless a different meaning is clearly apparent from the language or context:

a. “Interstate school district” and “interstate district” shall mean a school district composed of one or more school districts located in the State of New York associated under this compact with one or more school districts located in the State of Vermont, and may include either the elementary schools, the secondary schools, or both.

b. “Member school district” and “member district” shall mean a school district located either in New York or Vermont which is included within the boundaries of a proposed or established interstate school district. In the case of districts located in Vermont, it shall include city school districts, town school districts, union school districts, and incorporated school districts. Where appropriate, the term “member district clerk” shall refer to the clerk of the city in which a Vermont school district is located, the clerk of the town in which a Vermont town school district is located, or the clerk of an incorporated school district.

c. “Elementary school” shall mean a school which includes all grades from kindergarten or grade one through not less than grade six nor more than grade eight.

d. “Secondary school” shall mean a school which includes all grades beginning no lower than grade seven and no higher than grade twelve.

e. “Interstate board” shall refer to the board serving an interstate school district.

f. “New York board” shall refer to the New York State Board of Education.

g. “Vermont board” shall refer to the Vermont State Board of Education.

h. “Commissioner” shall refer to the New York Commissioner of Education or the Vermont Secretary of Education, individually or collectively as appropriate. “State departments of education” shall refer collectively to the New York State Education Department and the Vermont Agency of Education.

i. Where joint action by both state boards is required, each state board shall deliberate and vote by its own majority, but shall separately reach the same result or take the same action as the other state board.

j. The terms “professional staff personnel” and “instructional staff personnel” shall include superintendents, assistant superintendents, administrative assistants, principals, guidance counsellors, special education personnel, school nurses, therapists, teachers, and other licensed personnel.

k. The term “warrant” or “warning” to mean the same for both states.

(Added 1975, No. 130 (Adj. Sess.), § 1; amended 1989, No. 118, § 3; 2013, No. 92 (Adj. Sess.), § 94, eff. Feb. 14, 2014.)

§ 792 Procedure for Formation of an Interstate School District—Article II

A. Creation of planning committee. The New York and Vermont Commissioners of Education shall have the power, acting jointly to constitute and discharge one or more interstate school district planning committees. Each such planning committee shall consist of at least two voters from each of a group of two or more neighboring member districts. One of the representatives from each member district shall be a member of its school board, whose term on the planning committee shall be concurrent with his or her term as a school board member. The term of each member of a planning committee who is not also a school board member shall expire on June thirtieth of the third year following his or her appointment. The existence of any planning committee may be terminated either by vote of a majority of its members or by joint action of the commissioners. In forming and appointing members to an interstate school district planning board, the Commissioners shall consider and take into account recommendations and nominations made by school boards of member districts. No member of a planning committee shall be disqualified because he or she is at the same time a member of another planning board or committee created under the provisions of this compact or under any other provisions of law. Any existing informal interstate school planning committee may be reconstituted as a formal planning committee in accordance with the provisions hereof, and its previous deliberations adopted and ratified by the reorganized formal planning committee. Vacancies on a planning committee shall be filled by the commissioners acting jointly.

B. Operating procedures of planning committee. Each interstate school district planning committee shall meet in the first instance at the call of any member, and shall organize by the election of a chairman and clerk-treasurer, each of whom shall be a resident of a different state. Subsequent meetings may be called by either officer of the committee. The members of the committee shall serve without pay. The member districts shall appropriate money on an equal basis at each annual meeting to meet the expenses of the committee, including the cost of publication and distribution of reports and advertising. From time to time the commissioners may add additional members and additional member districts to the committee, and may remove members and member districts from the committee. An interstate school district planning committee shall act by majority vote of its membership present and voting.

C. Duties of interstate school district planning committee. It shall be the duty of an interstate school district planning committee, in consultation with the commissioners and the state departments of education: to study the advisability of establishing an interstate school district in accordance with the standards set forth in paragraph A of Article I of this compact, its organization, operation and control, and the advisability of constructing, maintaining and operating a school or schools to serve the needs of such interstate district; to estimate the construction and operating costs thereof; to investigate the methods of financing such school or schools, and any other matters pertaining to the organization and operation of an interstate school district; and to submit a report or reports of its findings and recommendations to the several member districts.

D. Recommendations and preparation of articles of agreement. An interstate school district planning committee may recommend that an interstate school district composed of all the member districts represented by its membership, or any specified combination of such member districts, be established. If the planning committee does recommend the establishment of an interstate school district, it shall include in its report such recommendation, and shall also prepare and include in its report proposed articles of agreement for the proposed interstate school district, which shall be signed by at least a majority of the membership of the planning committee, which set forth the following:

a. The name of the interstate school district.

b. The member districts which shall be combined to form the proposed interstate school district.

c. The number, composition, method of selection and terms of office of the interstate school board, provided that:

(1) The interstate school board shall consist of an odd number of members, not less than five nor more than fifteen;

(2) The terms of office shall not exceed three years;

(3) Each member district shall be entitled to elect at least one member of the interstate school board. Each member district shall either vote separately at the interstate school district meeting by the use of a distinctive ballot, or shall choose its member or members at any other election at which school officials may be chosen;

(4) The method of election shall provide for the filing of candidacies in advance of election and for the use of a printed nonpartisan ballot;

(5) Subject to the foregoing, provision may be made for the election of one or more members at large.

d. The grades for which the interstate school district shall be responsible.

e. The specific properties of member districts to be acquired initially by the interstate school district and the general location of any proposed new schools to be initially established or constructed by the interstate school district.

f. The method of apportioning the operating expenses of the interstate school district among the several member districts, and the time and manner of payments of such shares.

g. The indebtedness of any member district which the interstate district is to assume.

h. The method of apportioning the capital expenses of the interstate school district among the several member districts, which need not be the same as the method of apportioning operating expenses, and the time and manner of payment of such shares. Capital expenses shall include the cost of acquiring land and buildings for school purposes; the construction, furnishing and equipping of school buildings and facilities; and the payment of the principal and interest of any indebtedness which is incurred to pay for the same.

i. The manner in which state aid, available under the laws of either New York or Vermont, shall be allocated, unless otherwise expressly provided in this compact or by the laws making such aid available.

j. The method by which the articles of agreement may be amended, which amendments may include the annexation of territory, or an increase or decrease in the number of grades for which the interstate district shall be responsible, provided that no amendment shall be effective until approved by both state boards in the same manner as required for approval of the original articles of agreement.

k. The date of operating responsibility of the proposed interstate school district and a proposed program for the assumption of operating responsibility for education by the proposed interstate school district, and any school construction; which the interstate school district shall have the power to vary by vote as circumstances may require.

l. Any other matters, not incompatible with law, which the interstate school district planning committee may consider appropriate to include in the articles of agreement, including, without limitation:

(1) The method of allocating the cost of transportation between the interstate district and member districts;

(2) The nomination of individual school directors to serve until the first annual meeting of the interstate school district.

E. Hearings. If the planning committee recommends the formation of an interstate school district, it shall hold at least one public hearing on its report and the proposed articles of agreement within the proposed interstate school district in New York, and at least one public hearing thereon within the proposed interstate school district in Vermont. The planning committee shall give such notice thereof as it may determine to be reasonable, provided that such notice shall include at least one publication in a newspaper of general circulation within the proposed interstate school district not less than fifteen days (not counting the date of publication and not counting the date of the hearing) before the date of the first hearing. Such hearings may be adjourned from time to time and from place to place. The planning committee may revise the proposed articles of agreement after the date of the hearings. It shall not be required to hold further hearings on the revised articles of agreement but may hold one or more further hearings after notice similar to that required for the first hearings if the planning committee in its sole discretion determines that the revisions are so substantial in nature as to require further presentation to the public before submission to the state boards of education.

F. Approval by state boards. After the hearings a copy of the proposed articles of agreement, as revised, signed by a majority of the planning committee, shall be submitted by it to each state board. The state boards may (a) if they find that the articles of agreement are in accord with the standards set forth in this compact and in accordance with sound educational policy, approve the same as submitted, or (b) refer them back to the planning committee for further study. The planning committee may make additional revisions to the proposed articles of agreement to conform to the recommendations of the state boards. Further hearings on the proposed articles of agreement shall not be required unless ordered by the state boards in their discretion. In exercising such discretion, the state boards shall take into account whether or not the additional revisions are so substantial in nature as to require further presentation to the public. If both state boards find that the articles of agreement as further revised are in accord with the standards set forth in this compact and in accordance with sound educational policy, they shall approve the same. After approval by both state boards, each state board shall cause the articles of agreement to be submitted to the school boards of the several member districts in each state for acceptance by the member districts as provided in the following paragraph. At the same time, each state board shall designate the form of warrant, date, time, place, and period of voting for the special meeting of the member district to be held in accordance with the following paragraph.

G. Adoption by member districts. Upon receipt of written notice from the state board in its state of the approval of the articles of agreement by both state boards, the school board of each member district shall cause the articles of agreement to be filed with the member district clerk. Within ten days after receipt of such notice, the school board shall issue its warrant for a special meeting of the member district, the warrant to be in the form, and the meeting to be held at the time and place and in the manner prescribed by the state board. No approval of the superior court shall be required for such special school district meeting in New York. Voting shall be with the use of the check list by a ballot substantially in the following form:

“Shall the school district accept the provisions of the New York-Vermont Interstate School Compact providing for the establishment of an interstate school district, together with the school districts of .................................. and .................................. , etc., in accordance with the provisions of the proposed articles of agreement filed with the school district (town, city or incorporated school district) clerk?”

Yes ( ) No ( )

If the articles of agreement included the nomination of individual school directors, those nominated from each member district shall be included in the ballot and voted upon, such election to become effective upon the formation of an interstate school district.

If a majority of the voters present and voting in a member district vote in the affirmative, the clerk for such member district shall forthwith send to the state board in its state a certified copy of the warrant, certificate of posting, and minutes of the meeting of the district. If the state boards of both states find that a majority of the voters present and voting in each member district have voted in favor of the establishment of the interstate school district, they shall issue a joint certificate to that effect; and such certificate shall be conclusive evidence of the lawful organization and formation of the interstate school district as of its date of issuance.

H. Resubmission. If the proposed articles of agreement are adopted by one or more of the member districts but rejected by one or more of the member districts, the state boards may resubmit them, in the same form as previously submitted, to the rejecting member districts, in which case the school boards thereof shall resubmit them to the voters in accordance with paragraph G of this article. An affirmative vote in accordance therewith shall have the same effect as though the articles of agreement had been adopted in the first instance. In the alternative, the state boards may either (a) discharge the planning committee, or (b) refer the articles of agreement back for further consideration to the same or a reconstituted planning committee, which shall have all of the powers and duties as the planning committee as originally constituted.

(Added 1975, No. 130 (Adj. Sess.), § 2.)

§ 793 Powers of Interstate School Districts—Article III

A. Powers. Each interstate school district shall be a body corporate and politic, with power:

a. To acquire, construct, extend, improve, staff, operate, manage and govern public schools within its boundaries;

b. To sue and be sued, subject to the limitations of liability hereinafter set forth;

c. To have a seal and alter the same at pleasure;

d. To adopt, maintain and amend bylaws not inconsistent with this compact, and the laws of the two states;

e. To acquire by purchase, condemnation, lease or otherwise, real and personal property for the use of its schools;

f. To enter into contracts and incur debts;

g. To borrow money for the purposes hereinafter set forth and to issue its bonds or notes therefor;

h. To make contracts with and accept grants and aid from the United States, the State of New York, the State of Vermont, any agency or municipality thereof, and private corporations and individuals for the construction, maintenance, reconstruction, operation and financing of its schools; and to do any and all things necessary in order to avail itself of such aid and cooperation;

i. To employ such assistants, agents, servants, and independent contractors as it shall deem necessary or desirable for its purposes; and

j. To take any other action which is necessary or appropriate in order to exercise any of the foregoing powers.

(Added 1975, No. 130 (Adj. Sess.), § 3.)

§ 794 District Meetings—Article IV

A. General. Votes of the district shall be taken at a duly warned meeting held at any place in the district, at which all of the eligible legal voters of the member districts shall be entitled to vote, except as otherwise provided with respect to the election of directors.

B. Eligibility of voters. Any resident who would be eligible to vote at a meeting of a member district being held at the same time, shall be eligible to vote at a meeting of the interstate district. The board of civil authority in each Vermont member district and the supervisors of the check list of each New York district shall respectively prepare a check list of eligible voters for each meeting of the interstate district in the same manner, and they shall have all the same powers and duties with respect to eligibility of voters in their districts as for a meeting of a member district.

C. Warning of meetings. A meeting shall be warned by a warrant addressed to the residents of the interstate school district qualified to vote in district affairs, stating the time and place of the meeting and the subject matter of the business to be acted upon. The warrant shall be signed by the clerk and by a majority of the directors. Upon written application of ten or more voters in the district, presented to the directors or to one of them, at least 25 days before the day prescribed for an annual meeting, the directors shall insert in their warrant for such meeting any subject matter specified in such application.

D. Posting and publication of warrant. The directors shall cause an attested copy of the warrant to be posted at the place of meeting, and a like copy at a public place in each member district at least twenty days (not counting the date of posting and the date of meeting) before the date of the meeting. In addition, the directors shall cause the warrant to be advertised in a newspaper of general circulation on at least one occasion, such publication to occur at least ten days (not counting the date of publication and not counting the date of the meeting) before the date of the meeting. Although no further notice shall be required, the directors may give such further notice of the meeting as they in their discretion deem appropriate under the circumstances.

E. Return of warrant. The warrant with a certificate thereon, verified by oath, stating the time and place when and where copies of the warrant were posted and published, shall be given to the clerk of the interstate school district at or before the time of the meeting, and shall be recorded by him or her in the records of the interstate school district.

F. Organization meeting. The commissioners, acting jointly, shall fix a time and place for a special meeting of the qualified voters within the interstate school district for the purpose of organization, and shall prepare and issue the warrant for the meeting after consultation with the interstate school district planning board and the members-elect, if any, of the interstate school board of directors. Such meeting shall be held within 60 days after the date of issuance of the certificate of formation, unless the time is further extended by the joint action of the state boards. At the organization meeting the commissioner of education of the state where the meeting is held, or his or her designate, shall preside in the first instance, and the following business shall be transacted:

a. A temporary moderator and a temporary clerk shall be elected from among the qualified voters who shall serve until a moderator and clerk respectively have been elected and qualified.

b. A moderator, a clerk, a treasurer, and three auditors shall be elected to serve until the next annual meeting and thereafter until their successors are elected and qualified. Unless previously elected, a board of school directors shall be elected to serve until their successors are elected and qualified.

c. The date for the annual meeting shall be established.

d. Provision shall be made for the payment of any organizational or other expense incurred on behalf of the district before the organization meeting, including the cost of architects, surveyors, contractors, attorneys, and educational or other consultants or experts.

e. Any other business, the subject matter of which has been included in the warrant, and which the voters would have had power to transact at an annual meeting.

G. Annual meetings. An annual meeting of the district shall be held between January fifteenth and June first of each year at such time as the interstate district may by vote determine. Once determined, the date of the annual meeting shall remain fixed until changed by vote of the interstate district at a subsequent annual or special meeting. At each annual meeting the following business shall be transacted:

a. Necessary officers shall be elected.

b. Money shall be appropriated for the support of the interstate district schools for the fiscal year beginning the following July first.

c. Such other business as may properly come before the meeting.

H. Special meetings. A special meeting of the district shall be held whenever, in the opinion of the directors, there is occasion therefor, or whenever written application shall have been made by five percent or more of the voters (based on the check lists as prepared for the last preceding meeting) setting forth the subject matter upon which such action is desired. A special meeting may appropriate money without compliance with Education Law §§ 2006-2008 and Education Law §§ 416 and 417 which would otherwise require the approval of the New York supreme court.

I. Certification of records. The clerk of an interstate school district shall have the power to certify the record of the votes adopted at an interstate school district meeting to the respective commissioners and state boards and (where required) for filing with a Secretary of State.

J. Method of voting at school district meetings. Voting at meetings of interstate school districts shall take place as follows:

a. School directors. A separate ballot shall be prepared for each member district, listing the candidates for interstate school director to represent such member district; and any candidates for interstate school director at large; and the voters of each member district shall register on a separate ballot their choice for the office of school director or directors. In the alternative, the articles of agreement may provide for the election of school directors by one or more of the member districts at an election otherwise held for the choice of school or other municipal officers.

b. Other votes. Except as otherwise provided in the articles of agreement or this compact, with respect to all other votes (1) the voters of the interstate school district shall vote as one body irrespective of the member districts in which they are resident, and (2) a simple majority of those present and voting at any duly warned meeting shall carry the vote. Voting for officers to be elected at any meeting, other than school directors, shall be by ballot or voice, as the interstate district may determine, either in its articles of agreement or by vote of the meeting.

(Added 1975, No. 130 (Adj. Sess.), § 4.)

§ 795 Officers—Article V

A. Officers: general. The officers of an interstate school district shall be a board of school directors, a chairman of the board, a vice-chairman of the board, a secretary of the board, a moderator, a clerk, a treasurer and three auditors. Except as otherwise specifically provided, they shall be eligible to take office immediately following their election; they shall serve until the next annual meeting of the interstate district and until their successors are elected and qualified. Each shall take oath for the faithful performance of his duties before the moderator, or a notary public or a justice of the peace of the state in which the oath is administered. Their compensation shall be fixed by vote of the district. No person shall be eligible to any district office unless he is a voter in the district. A custodian, school teacher, principal, superintendent or other employee of an interstate district acting as such shall not be eligible to hold office as a school director.

B. Board of directors.

a. How chosen. Each member district shall be represented by at least one resident on the board of school directors of an interstate school district. A member district shall be entitled to such further representation on the interstate board of school directors as provided in the articles of agreement as amended from time to time. The articles of agreement as amended from time to time may provide for school directors at large, as above set forth. No person shall be disqualified to serve as a member of an interstate board because he is at the same time a member of the school board of a member district.

b. Term. Interstate school directors shall be elected for terms in accordance with the articles of agreement.

c. Duties of board of directors. The board of school directors of an interstate school district shall have and exercise all of the powers of the district not reserved herein to the voters of the district.

d. Organization. The clerk of the district shall warn a meeting of the board of school directors to be held within ten days following the date of the annual meeting, for the purpose of organizing the board, including the election of its officers.

C. Chairman of the board. The chairman of the board of interstate school directors shall be elected by the interstate board from among its members at its first meeting following the annual meeting. The chairman shall preside at the meetings of the board and shall perform such other duties as the board may assign to him.

D. Vice-Chair of the board of directors. The vice-chairman of the interstate board shall be elected in the same manner as the chairman. He shall represent a member district in a state other than that represented by the chairman. He shall preside in the absence of the chairman and shall perform such other duties as may be assigned to him by the interstate board.

E. Secretary of the board. The secretary of the interstate board shall be elected in the same manner as the chairman. Instead of electing one of its members, the interstate board may appoint the interstate district clerk to serve as secretary of the board in addition to his other duties. The secretary of the interstate board (or the interstate district clerk, if so appointed) shall keep the minutes of its meetings, shall certify its records, and perform such other duties as may be assigned to him by the board.

F. Moderator. The moderator shall preside at the district meetings, regulate the business thereof, decide questions of order, and make a public declaration of every vote passed. He may prescribe rules of procedure; but such rules may be altered by the district. He may administer oaths to district officers in either state.

G. Clerk. The clerk shall keep a true record of all proceedings at each district meeting, shall certify its records, shall make an attested copy of any records of the district for any person upon request and tender of reasonable fees therefor, if so appointed, shall serve as secretary of the board of school directors, and shall perform such other duties as may be required by custom or law.

H. Treasurer. The treasurer shall have custody of all of the monies belonging to the district and shall pay out the same only upon the order of the interstate board. He shall keep a fair and accurate account of all sums received into and paid from the interstate district treasury, and at the close of each fiscal year he shall make a report to the interstate district, giving a particular account of all receipts and payments during the year. He shall furnish to the interstate directors, statements from his books and submit his books and vouchers to them and to the district auditors for examination whenever so requested. He shall make all returns called for by laws relating to school districts. Before entering on his duties, the treasurer shall give a bond with sufficient sureties and in such sum as the directors may require. The treasurer’s term of office is from July 1 to the following June 30.

I. Auditors. At the organization meeting of the district, three auditors shall be chosen, one to serve for a term of one year, one to serve for a term of two years, and one to serve for a term of three years. After the expiration of each original term, the successor shall be chosen for a three year term. At least one auditor shall be a resident of New York, and one auditor shall be a resident of Vermont. An interstate district may vote to employ a certified public accountant to assist the auditors in the performance of their duties. The auditors shall carefully examine the accounts of the treasurer and the directors at the close of each fiscal year, and at such other times whenever necessary, and report to the district whether the same are correctly cast and properly vouched.

J. Superintendent. The superintendent of schools shall be selected by a majority vote of the board of school directors of the interstate district with the approval of both commissioners.

K. Vacancies. Any vacancy among the elected officers of the district shall be filled by the interstate board until the next annual meeting of the district or other election, when a successor shall be elected to serve out the remainder of the unexpired term, if any. Until all vacancies on the interstate board are filled, the remaining members shall have full power to act.

(Added 1975, No. 130 (Adj. Sess.), § 5.)

§ 796 Appropriation and Apportionment of Funds—Article VI

A. Budget. Before each annual meeting, the interstate board shall prepare a report of expenditures for the preceding fiscal year, an estimate of expenditures for the current fiscal year, and a budget for the succeeding fiscal year.

B. Appropriation. The interstate board of directors shall present the budget report of the annual meeting. The interstate district shall appropriate a sum of money for the support of its schools and for the discharge of its obligations for the ensuing fiscal year.

C. Apportionment of appropriation. Subject to the provisions of article VII hereof, the interstate board shall first apply against such appropriation any income to which the interstate district is entitled, and shall then apportion the balance among the member districts in accordance with one of the following formulas as determined by the articles of agreement as amended from time to time:

a. All of such balance to be apportioned on the basis of the ratio that the fair market value of the taxable property in each member district bears to that of the entire interstate district; or

b. All of such balance to be apportioned on the basis that the average daily resident membership for the preceding fiscal year of each member district bears to that of the average daily resident membership of the entire interstate school district; or

c. A formula based on any combination of the foregoing factors.

The term “fair market value of taxable property” shall mean the last locally assessed valuation of a member district in New York, as last equalized by the New York State Tax Commission.

The term “fair market value of taxable property” shall mean the equalized grand list of a Vermont member district, as determined by the Vermont Department of Taxes.

Such assessed valuation and grand list may be further adjusted (by elimination of certain types of taxable property from one or the other or otherwise) in accordance with the articles of agreement, in order that the fair market value of taxable property in each state shall be comparable.

“Average daily resident membership” of the interstate district in the first instance shall be the sum of the average daily resident membership of the member districts in the grades involved for the preceding fiscal year where no students were enrolled in the interstate district schools for such preceding fiscal year.

D. Share of New York member district. The interstate board shall certify the share of a New York member district of the total appropriation to the school board of each member district which shall add such sum to the amount appropriated by the member district itself for the ensuing year and raise such sum in the same manner as though the appropriation had been voted at a school district meeting of the member district. The interstate district shall not set up its own capital reserve funds; but a New York member district may set up a capital reserve fund in accordance with Education Law §§ 3651 and 3652, to be turned over to the interstate district in payment of the New York member district’s share of any anticipated obligations.

E. Share of Vermont member district. The interstate board shall certify the share of a Vermont member district of the total appropriation to the school board of each member district which shall add such sum to the amount appropriated by the member district itself for the ensuing year and raise such sum in the same manner as though the appropriation had been voted at a school district meeting of the member district.

(Added 1975, No. 130 (Adj. Sess.), § 6.)

§ 797 Borrowing—Article VII

A. Interstate district indebtedness. Indebtedness of an interstate district shall be a general obligation of the district and shall also be a joint and several general obligation of each member district, except that such obligations of the district and its member districts shall not be deemed indebtedness of any member district for the purposes of determining its borrowing capacity under New York and Vermont law. A member district which withdraws from an interstate district shall remain liable for indebtedness of the interstate district which is outstanding at the time of withdrawal and shall be responsible for paying its share of such indebtedness to the same extent as though it had not been withdrawn.

B. Temporary borrowing. The interstate board may authorize the borrowing of money by the interstate district (1) in anticipation of payments of operating and capital expenses by the member districts to the interstate districts and (2) in anticipation of the issue of bonds or notes of the interstate district which have been authorized for the purpose of financing capital projects. Such temporary borrowing shall be evidenced by interest bearing or discounted notes of the interstate district. The amount of notes issued in any fiscal year in anticipation of expense payments shall not exceed the amount of such payments received by the interstate district in the preceding fiscal year. Notes issued under this paragraph shall be payable within one year in the case of notes under clause (1) and three years in the case of notes under clause (2) from their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes, provided that the period from the date of an original note to the maturity of any note issued to renew or pay the same debt shall not exceed the maximum period permitted for the original loan.

C. Borrowing for capital projects. An interstate district may incur debt and issue its bonds or notes to finance capital projects. Such projects may consist of the acquisition or improvement of land and buildings for school purposes, the construction, reconstruction, alteration, or enlargement of school buildings and related school facilities, the acquisition of equipment of a lasting character and the payment of judgments. No interstate district may authorize indebtedness in excess of ten percent of the total fair market value of taxable property in its member districts as defined in article VI of this compact. The primary obligation of the interstate district to pay indebtedness of member districts shall not be considered indebtedness of the interstate district for the purpose of determining its borrowing capacity under this paragraph. Bonds or notes issued under this paragraph shall mature in equal or diminishing installments of principal payable at least annually commencing no later than two years and ending not later than thirty years after their dates.

D. Authorization proceedings. An interstate district shall authorize the incurring of debts to finance capital projects by a majority vote of the district passed at an annual or special district meeting. Such vote shall be taken by secret ballot after full opportunity for debate, and any such vote shall be subject to reconsideration and further action by the district at the same meeting or at an adjourned session thereof.

E. Sale of bonds and notes. Bonds and notes which have been authorized under this article may be issued from time to time and shall be sold at not less than par and accrued interest at public or private sale by the chairman of the school board and by the treasurer. Interstate district bonds and notes shall be signed by the said officers, except that either one of the two required signatures may be a facsimile. Subject to this compact and the authorizing vote, they shall be in such form, bear such rates of interest and mature at such times as the said officers may determine. Bonds shall, but notes need not, bear the seal of the interstate district or a facsimile of such seal. Any bonds or notes of the interstate district which are properly executed by the said officers shall be valid and binding according to their terms notwithstanding that before the delivery thereof such officers may have ceased to be officers of the interstate district.

F. Proceeds of bonds. Any accrued interest received upon delivery of bonds or notes of an interstate district shall be applied to the payment of the first interest which becomes due thereon. The other proceeds of the sale of such bonds or notes, other than temporary notes, including any premiums, may be temporarily invested by the interstate district pending their expenditure; and such proceeds, including any income derived from the temporary investment of such proceeds, shall be used to pay the costs of issuing and marketing the bonds or notes and to meet the operating expenses or capital expenses in accordance with the purposes for which the bonds or notes were issued or, by proceedings taken in the manner required for the authorization of such debt, for other purposes for which such debt could be incurred. No purchaser of any bonds or notes of an interstate district shall be responsible in any way to see to the application of the proceeds thereof.

G. State aid programs. As used in this paragraph the term “initial aid” shall include New York and Vermont financial assistance with respect to a capital project, or the means of financing a capital project, which is available in connection with construction costs of a capital project or which is available at the time indebtedness is incurred to finance the project. Without limiting the generality of the foregoing definition, initial aid shall specifically include a New York state guarantee under Education Law §§ 1709 and 2512 with respect to bonds or notes and Vermont construction aid under 16 V.S.A. chapter 123. As used in this paragraph the term “long-term aid” shall include New York and Vermont financial assistance which is payable periodically in relation to capital costs incurred by an interstate district. Without limiting the generality of the foregoing definition, long-term aid shall specifically include New York school building aid under Education Law §§ 416 and 417 and Vermont school building aid under 16 V.S.A. chapter 123. For the purpose of applying for, receiving and expending initial aid and long-term aid an interstate district shall be deemed a native school district by each state, subject to the following provisions. When an interstate district has appropriated money for a capital project, the amount appropriated shall be divided into a New York share and a Vermont share in accordance with the capital expense apportionment formula in the articles of agreement as though the total amount appropriated for the project was a capital expense requiring apportionment in the year the appropriation is made. New York initial aid shall be available with respect to the amount of the New York share as though it were authorized indebtedness of a New York cooperative school district. In the case of a state guarantee of interstate districts bonds or notes under Education Law §§ 1709 and 2512, the interstate district shall be eligible to apply for and receive an unconditional state guarantee with respect to an amount of its bonds or notes which does not exceed fifty percent of the amount of the New York share as determined above. Vermont initial aid shall be available with respect to the amount of the Vermont share as though it were funds voted by a Vermont school district. Payments of Vermont initial aid shall be made to the interstate district, and the amount of any borrowing authorized to meet the appropriation for the capital project shall be reduced accordingly. New York and Vermont long-term aid shall be payable to the interstate district. The amounts of long-term aid in each year shall be based on the New York and Vermont shares of the amount of indebtedness of the interstate district which is payable in that year and which has been apportioned in accordance with the capital expense apportionment formula in the articles of agreement. The New York aid shall be payable at the rate of forty-five percent, if there are three or less New York members in the interstate district, and otherwise it shall be payable as though the New York members were a New York cooperative school district. New York and Vermont long-term aid shall be deducted from the total capital expenses for the fiscal year in which the long-term aid is payable, and the balance of such expenses shall be apportioned among the member districts. Notwithstanding the foregoing provisions, New York and Vermont may at any time change their state school aid programs that are in existence when this compact takes effect and may establish new programs, and any legislation for these purposes may specify how such programs shall be applied with respect to interstate districts.

H. Tax exemption. Bonds and notes of an interstate school district shall be exempt from local property taxes in both states, and the interest or discount thereon and any profit derived from the disposition thereof shall be exempt from personal income taxes in both states.

(Added 1975, No. 130 (Adj. Sess.), § 7.)

§ 798 Taking Over of Existing Property—Article VIII

A. Power to acquire property of member district. The articles of agreement, or an amendment thereof, may provide for the acquisition by an interstate district from a member district of all or a part of its existing plant and equipment.

B. Valuation. The articles of agreement, or the amendment, shall provide for the determination of the value of the property to be acquired in one or more of the following ways:

a. A valuation set forth in the articles of agreement or the amendment.

b. By appraisal, in which case, one appraiser shall be appointed by each commissioner, and a third appraiser appointed by the first two appraisers.

C. Reimbursement to member district. The articles of agreement shall specify the method by which the member district shall be reimbursed by the interstate district for the property taken over, in one or more of the following ways:

a. By one lump sum, appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

b. In installments over a period of not more than twenty years, each of which is appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

c. By an agreement to assume or reimburse the member district for all principal and interest on any outstanding indebtedness originally incurred by the member district to finance the acquisition and improvement of the property, each such installment to be appropriated, allocated, and raised by the interstate district in the same manner as an appropriation for operating expenses.

The member district transferring the property shall have the same obligation to pay to the interstate district its share of the cost of such acquisition, but may offset its right to reimbursement.

(Added 1975, No. 130 (Adj. Sess.), § 8.)

§ 799 Amendments to Articles of Agreement—Article IX

A. Amendments to the articles of agreement may be adopted in the same manner provided for the adoption of the original articles of agreement, except that:

a. Unless the amendment calls for the addition of a new member district, the functions of the planning committee shall be carried out by the interstate district board of directors.

b. If the amendment proposes the addition of a new member district, the planning committee shall consist of all of the members of the interstate board and all of the members of the school board of the proposed new member district or districts. In such case the amendment shall be submitted to the voters at an interstate district meeting, at which an affirmative vote of two-thirds of those present and voting shall be required. The articles of agreement together with the proposed amendment shall be submitted to the voters of the proposed new member district at a meeting thereof, at which a simple majority of those present and voting shall be required.

c. In all cases an amendment may be adopted on the part of an interstate district upon the affirmative vote of voters thereof at a meeting voting as one body. Except where the amendment proposes the admission of a new member district, a simple majority of those present and voting shall be required for adoption.

d. No amendment to the articles of agreement may impair the rights of bond or note holders or the power of the interstate district to procure the means for their payment.

(Added 1975, No. 130 (Adj. Sess.), § 9.)

§ 800 Applicability of New York Laws — Article X

A. General school laws. With respect to the operation and maintenance of any school of the district located in New York, the provisions of New York law shall apply except as otherwise provided in this compact and except that the powers and duties of the school board shall be exercised and discharged by the interstate board and the powers and duties of the union superintendent shall be exercised and discharged by the interstate district superintendent.

B. New York state aid. A New York school district shall be entitled to receive an amount of state aid for operating expenditures as though its share of the interstate district’s expenses were the expenses of the New York member district, and as though the New York member district pupils attending the interstate school were attending a New York cooperative school district’s school. The state aid shall be paid to the New York member school district to reduce the sums which would otherwise be required to be raised by taxation within the member district.

C. Continued existence of the New York member school district. A New York member school district shall continue in existence, and shall have all of the powers and be subject to all of the obligations imposed by law and not herein delegated to the interstate district. If the interstate district incorporates only a part of the schools in the member school district, then the school board of the member school district shall continue in existence and it shall have all of the powers and be subject to all of the obligations imposed by law on it and not herein delegated to the district. However, if all of the schools in the member school district are incorporated into the interstate school district, then the member or members of the interstate board representing the member district shall have all of the powers and be subject to all of the obligations imposed by law on the members of a school board for the member district and not herein delegated to the interstate district. The New York member school district shall remain liable on its existing indebtedness; and the interstate school district shall not become liable therefor, unless the indebtedness is specifically assumed in accordance with the articles of agreement. Any trust funds or capital reserve funds and any property not taken over by the interstate district shall be retained by the New York member district and held or disposed of according to law. If all of the schools in a member district are incorporated into an interstate district, then no annual meeting of the member district shall be required unless the members of the interstate board from the member district shall determine that there is occasion for such an annual meeting.

D. Suit and service of process in New York. The courts of New York shall have the same jurisdiction over the district as though a New York member district were a party instead of the interstate district. The service necessary to institute suit in New York shall be made on the district by leaving a copy of the writ or other proceedings in hand or at the last and usual place of abode of one of the directors who reside in New York, and by mailing a like copy to the clerk and to one other director by certified mail with return receipt requested.

E. Employment. Each employee of an interstate district assigned to a school located in New York shall be considered an employee of a New York school district for the purpose of the New York Teachers’ Retirement System, the New York State Employees’ Retirement System, the New York workers’ compensation law and any other law relating to the regulation of employment or the provision of benefits for employees of New York school districts except as follows:

  1. A teacher in a New York member district may elect to remain a member of the New York teachers’ retirement system, even though assigned to teach in an interstate school in Vermont.

  2. Employees of interstate districts designated as professional or instructional staff members, as defined in article I hereof, may elect to participate in the teachers’ retirement system of either the State of New York or the State of Vermont but in no case will they participate in both retirement systems simultaneously.

  3. It shall be the duty of the superintendent in an interstate district to: (a) advise teachers and other professional staff employees contracted for the district about the terms of the contract and the policies and procedure of the retirement systems; (b) see that each teacher or professional staff employee selects the retirement system of his or her choice at the time his or her contract is signed; (c) provide the commissioners of education in New York and in Vermont with the names and other pertinent information regarding each staff member under his or her jurisdiction so that each may be enrolled in the retirement system of his or her preference.

(Added 1975, No. 130 (Adj. Sess.), § 10; amended 1981, No. 165 (Adj. Sess.), § 1.)

§ 801 Applicability of Vermont Laws—Article XI

A. General school laws. With respect to the operation and maintenance of any school of the district located in Vermont, the provisions of Vermont law shall apply except as otherwise provided in this compact and except that the powers and duties of the school board shall be exercised and discharged by the interstate board and the powers and duties of the union superintendent shall be exercised and discharged by the interstate district superintendent.

B. Vermont State aid. A Vermont school district shall be entitled to receive such amount of State aid for operating expenditures as though its share of the interstate district’s expenses were the expenses of the Vermont member district, and as though the Vermont member district pupils attending the interstate schools were attending a Vermont union school district’s schools. Such State aid shall be paid to the Vermont member school district to reduce the sums which would otherwise be required to be raised by taxation within the member district.

C. Continued existence of Vermont member school district. A Vermont member school district shall continue in existence, and shall have all the powers and be subject to all of the obligations imposed by law and not herein delegated to the interstate district. If the interstate district incorporates only a part of the schools in the member school district, then the school board of the member school district shall continue in existence and it shall have all of the powers and be subject to all of the obligations imposed by law on it and not herein delegated to the district. However, if all of the schools in the member school district are incorporated into the interstate school district, then the member or members of the interstate board representing the member district shall have all of the powers and be subject to all of the obligations imposed by law on the members of a school board for the member district and not herein delegated to the interstate district. The Vermont member school district shall remain liable on its existing indebtedness; and the interstate school district shall not become liable therefor. Any trust funds and any property not taken over shall be retained by the Vermont member school district and held or disposed of according to law.

D. Suit and service of process in Vermont. The courts of Vermont shall have the same jurisdiction over the districts as though a Vermont member district were a party instead of the interstate district. The service necessary to institute suit in Vermont shall be made on the district by leaving a copy of the writ or other proceedings in hand or at the last and usual place of abode of one of the directors who resides in Vermont, and by mailing a like copy to the clerk and to one other director by certified mail with return receipt requested.

E. Employment. Each employee of an interstate district assigned to a school located in Vermont shall be considered an employee of a Vermont school district for the purpose of the State Teachers’ Retirement System of Vermont, the State Employees’ Retirement System, the Vermont workers’ compensation law, and any other law relating to the regulation of employment or the provision of benefits for employees of Vermont school districts except as follows:

  1. A teacher in a Vermont member district may elect to remain a member of the State Teachers’ Retirement System of Vermont, even though assigned to teach in an interstate school in New York.

  2. Employees of interstate districts designated as professional or instructional staff members, as defined in article I hereof, may elect to participate in the teachers’ retirement system of either the State of Vermont or the State of New York but in no case will they participate in both retirement systems simultaneously.

  3. It shall be the duty of the superintendent in an interstate district to: (a) advise teachers and other professional staff employees contracted for the district about the terms of the contract and the policies and procedures of the retirement system; (b) see that each teacher or professional staff employee selects the retirement system of his choice at the time his contract is signed; (c) provide the commissioners of education in New York and in Vermont with the names and other pertinent information regarding each staff member under his jurisdiction so that each may be enrolled in the retirement system of his preference.

(Added 1975, No. 130 (Adj. Sess.), § 11; amended 1981, No. 165 (Adj. Sess.), § 1.)

§ 802 Miscellaneous Provisions—Article XII

A. Studies. Insofar as practicable, the studies required by the laws of both states shall be offered in an interstate school district.

B. Textbooks. Textbooks and scholar’s supplies shall be provided at the expense of the interstate district for pupils attending its schools.

C. Transportation. The allocation of the cost of transportation in an interstate school district, as between the interstate district and the member districts, shall be determined by the articles of agreement.

D. Location of schoolhouses. In any case where a new schoolhouse or other school facility is to be constructed or acquired, the interstate board shall first determine whether it shall be located in New York or in Vermont. If it is to be located in New York, Education Law §§ 401-409, relating to schoolhouses, shall apply. If it is to be located in Vermont, the Vermont law relating to schoolhouses shall apply.

E. Fiscal year. The fiscal year of each interstate district shall begin on July first of each year and end on June thirtieth of the following year.

F. Immunity from tort liability. Notwithstanding the fact that an interstate district may derive income from operating profit, fees, rentals, and other services, it shall be immune from suit and from liability for injury to persons or property and for other torts caused by it or its agents, servants or independent contractors except insofar as it may have undertaken such liability under Workers’ Compensation Law § 3 relating to workers’ compensation, or Education Law § 3023 relating to the procurement of liability insurance by a governmental agency and except insofar as it may have undertaken such liability under 21 V.S.A. § 621 relating to workers’ compensation or 29 V.S.A. § 1403 relating to the procurement of liability insurance by a governmental agency.

G. Administrative agreement between commissioners of education. The commissioners of education of New York and Vermont may enter into one or more administrative agreements prescribing the relationship between the interstate districts, member districts, and each of the two state departments of education, in which any conflicts between the two states in procedure, regulations, and administrative practices may be resolved.

H. Amendments. Neither state shall amend its legislation or any agreement authorized thereby without the consent of the other in such manner as to substantially adversely affect the rights of the other state or its people hereunder, or as to substantially impair the rights of the holders of any bonds or notes or other evidences of indebtedness then outstanding or the rights of an interstate school district to procure the means for payment thereof. Subject to the foregoing, any reference herein to other statutes of either state shall refer to such statute as it may be amended or revised from time to time.

I. Separability. If any of the provisions of this compact, or legislation enabling the same, shall be held invalid or unconstitutional in relation to any of the applications thereof, such invalidity or unconstitutionality shall not affect other applications thereof or other provisions thereof; and to this end the provisions of this compact are declared to be severable.

J. Inconsistency of language. The validity of this compact shall not be affected by any insubstantial differences in its form or language as adopted by the two states.

(Added 1975, No. 130 (Adj. Sess.), § 12; amended 1981, No. 165 (Adj. Sess.), § 1.)

§ 803 Effective Date—Article XIII

This compact shall become effective when passed by the Vermont General Assembly, signed by the Governor and approved by the United States Congress.

(Added 1975, No. 130 (Adj. Sess.), § 13.)

Chapter 19 Interstate Compact on Educational Opportunity for Military Children

§ 806 Purpose — Article I

It is the purpose of this compact to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by:

A. Facilitating the timely enrollment of children of military families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of education records from the previous school district or variations in entrance or age requirements.

B. Facilitating the student placement process through which children of military families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content, or assessment.

C. Facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic, and social activities.

D. Facilitating the on-time graduation of children of military families.

E. Providing for the promulgation and enforcement of administrative rules implementing the provisions of this compact.

F. Providing for the uniform collection and sharing of information between and among member states, schools, and military families under this compact.

G. Promoting coordination between this compact and other compacts affecting military children.

H. Promoting flexibility and cooperation between the educational system, parents, and the student in order to achieve educational success for the student.

(Added 2011, No. 43, § 1.)

§ 806a Definitions — Article II

As used in this compact, unless the context clearly requires a different construction:

A. “Active duty” means: full-time duty status in the active uniformed service of the United States, including members of the National Guard and Reserve on active duty orders pursuant to 10 U.S.C. Chapter 1209 and 1211.

B. “Children of military families” means: a school-aged child or children, enrolled in Kindergarten through Twelfth (12th) grade, in the household of an active duty member.

C. “Compact commissioner” means: the voting representative of each compacting state appointed pursuant to Article VIII of this compact.

D. “Deployment” means: the period one (1) month prior to the service members’ departure from their home station on military orders though six (6) months after return to their home station.

E. “Education(al) records” means: those official records, files, and data directly related to a student and maintained by the school or local education agency, including but not limited to records encompassing all the material kept in the student’s cumulative folder such as general identifying data, records of attendance and of academic work completed, records of achievement and results of evaluative tests, health data, disciplinary status, test protocols, and individualized education programs.

F. “Extracurricular activities” means: a voluntary activity sponsored by the school or local education agency or an organization sanctioned by the local education agency. Extracurricular activities include, but are not limited to, preparation for and involvement in public performances, contests, athletic competitions, demonstrations, displays, and club activities.

G. “Interstate Commission on Educational Opportunity for Military Children” means: the commission that is created under Article IX of this compact, which is generally referred to as Interstate Commission.

H. “Local education agency” means: a public authority legally constituted by the state as an administrative agency to provide control of and direction for Kindergarten through Twelfth (12th) grade public educational institutions.

I. “Member state” means: a state that has enacted this compact.

J. “Military installation” means: a base, camp, post, station, yard, center, homeport facility for any ship, or other activity under the jurisdiction of the Department of Defense, including any leased facility, which is located within any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Marianas Islands, and any other U.S. Territory. Such term does not include any facility used primarily for civil works, rivers and harbors projects, or flood control projects.

K. “Nonmember state” means: a state that has not enacted this compact.

L. “Receiving state” means: the state to which a child of a military family is sent, brought, or caused to be sent or brought.

M. “Rule” means: a written statement by the Interstate Commission promulgated pursuant to Article XII of this compact that is of general applicability, implements, interprets, or prescribes a policy or provision of the compact, or an organizational, procedural, or practice requirement of the Interstate Commission, and has the force and effect of a rule promulgated under the Vermont Administrative Procedure Act as found in 3 V.S.A. chapter 25, and includes the amendment, repeal, or suspension of an existing rule.

N. “Sending state” means: the state from which a child of a military family is sent, brought, or caused to be sent or brought.

O. “State” means: a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Marianas Islands, and any other U.S. Territory.

P. “Student” means: the child of a military family for whom the local education agency receives public funding and who is formally enrolled in Kindergarten through Twelfth (12th) grade.

Q. “Transition” means: 1) the formal and physical process of transferring from school to school or 2) the period of time in which a student moves from one school in the sending state to another school in the receiving state.

R. “Uniformed service” means: the Army, Navy, Air Force, Marine Corps, Coast Guard as well as the Commissioned Corps of the National Oceanic and Atmospheric Administration, and Public Health Services.

S. “Veteran” means: a person who served in the uniformed services and who was discharged or released therefrom under conditions other than dishonorable.

(Added 2011, No. 43, § 1.)

§ 806b Applicability — Article III

A. Except as otherwise provided in Section B, this compact shall apply to the children of:

  1. active duty members of the uniformed services as defined in this compact, including members of the National Guard and Reserve on active duty orders pursuant to 10 U.S.C. Chapter 1209 and 1211;

  2. members or veterans of the uniformed services who are severely injured and medically discharged or retired for a period of one (1) year after medical discharge or retirement; and

  3. members of the uniformed services who die on active duty or as a result of injuries sustained on active duty for a period of one (1) year after death.

B. The provisions of this interstate compact shall only apply to local education agencies as defined in this compact.

C. The provisions of this compact shall not apply to the children of:

  1. inactive members of the national guard and military reserves;

  2. members of the uniformed services now retired, except as provided in Section A;

  3. veterans of the uniformed services, except as provided in Section A; and

  4. other U.S. Dept. of Defense personnel and other federal agency civilian and contract employees not defined as active duty members of the uniformed services.

(Added 2011, No. 43, § 1.)

§ 806c Educational records and enrollment — Article IV

A. Unofficial or “hand-carried” education records — In the event that official education records cannot be released to the parents for the purpose of transfer, the custodian of the records in the sending state shall prepare and furnish to the parent a complete set of unofficial educational records containing uniform information as determined by the Interstate Commission. Upon receipt of the unofficial education records by a school in the receiving state, the school shall enroll and appropriately place the student based on the information provided in the unofficial records pending validation by the official records, as quickly as possible.

B. Official education records and transcripts — Simultaneous with the enrollment and conditional placement of the student, the school in the receiving state shall request the student’s official education record from the school in the sending state. Upon receipt of this request, the school in the sending state will process and furnish the official education records to the school in the receiving state within ten (10) days or within such time as is reasonably determined under the rules promulgated by the Interstate Commission.

C. Immunizations — Compacting states shall give thirty (30) days from the date of enrollment or within such time as is reasonably determined under the rules promulgated by the Interstate Commission, for students to obtain any immunizations required by the receiving state. For a series of immunizations, initial vaccinations must be obtained within thirty (30) days or within such time as is reasonably determined under the rules promulgated by the Interstate Commission.

D. Kindergarten and first grade entrance age — Students shall be allowed to continue their enrollment at grade level in the receiving state commensurate with their grade level (including Kindergarten) from a local education agency in the sending state at the time of transition, regardless of age. A student that has satisfactorily completed the prerequisite grade level in the local education agency in the sending state shall be eligible for enrollment in the next highest grade level in the receiving state, regardless of age. A student transferring after the start of the school year in the receiving state shall enter the school in the receiving state on their validated level from an accredited school in the sending state.

(Added 2011, No. 43, § 1.)

§ 806d Placement and attendance — Article V

A. Course placement — When the student transfers before or during the school year, the receiving state school shall initially honor placement of the student in educational courses based on the student’s enrollment in the sending state school or educational assessments conducted at the school in the sending state if the courses are offered or both. Course placement includes but is not limited to Honors, International Baccalaureate, Advanced Placement, vocational, technical, and career pathways courses. Continuing the student’s academic program from the previous school and promoting placement in academically and career challenging courses should be paramount when considering placement. This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement and continued enrollment of the student in the courses.

B. Educational program placement — The receiving state school shall initially honor placement of the student in educational programs based on current educational assessments conducted at the school in the sending state or participation or placement in like programs in the sending state. Such programs include, but are not limited to: 1) gifted and talented programs; and 2) English as a second language (ESL). This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

C. Special education services — 1) In compliance with the federal requirements of the Individuals with Disabilities Education Act (IDEA), 20 U.S.C.A. Section 1400 et seq., the receiving state shall initially provide comparable services to a student with disabilities based on his or her current Individualized Education Program (IEP); and 2) in compliance with the requirements of Section 504 of the Rehabilitation Act, 29 U.S.C.A. Section 794, and with Title II of the Americans with Disabilities Act, 42 U.S.C.A. Sections 12131-12165, the receiving state shall make reasonable accommodations and modifications to address the needs of incoming students with disabilities, subject to an existing 504 or Title II Plan, to provide the student with equal access to education. This does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

D. Placement flexibility — Local education agency administrative officials shall have flexibility in waiving course and program prerequisites, or other preconditions for placement in courses and programs offered under the jurisdiction of the local education agency.

E. Absence as related to deployment activities — A student whose parent or legal guardian is an active duty member of the uniformed services, as defined by the compact, and has been called to duty for, is on leave from, or immediately returned from deployment to a combat zone or combat support posting, shall be granted additional excused absences at the discretion of the local education agency superintendent to visit with his or her parent or legal guardian relative to such leave or deployment of the parent or guardian.

(Added 2011, No. 43, § 1.)

§ 806e Eligibility — Article VI

A. Eligibility for enrollment.

  1. Special power of attorney, relative to the guardianship of a child of a military family and executed under applicable law shall be sufficient for the purposes of enrollment and all other actions requiring parental participation and consent.

  2. A local education agency shall be prohibited from charging local tuition to a transitioning military child placed in the care of a noncustodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent.

  3. A transitioning military child, placed in the care of a noncustodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent, may continue to attend the school in which he or she was enrolled while residing with the custodial parent.

B. Eligibility for extracurricular participation — State and local education agencies shall facilitate the opportunity for transitioning military children’s inclusion in extracurricular activities, regardless of application deadlines, to the extent they are otherwise qualified.

(Added 2011, No. 43, § 1.)

§ 806f Graduation — Article VII

In order to facilitate the on-time graduation of children of military families, states and local education agencies shall incorporate the following procedures:

A. Waiver requirements — Local education agency administrative officials shall waive specific courses required for graduation if similar course work has been satisfactorily completed in another local education agency or shall provide reasonable justification for denial. Should a waiver not be granted to a student who would qualify to graduate from the sending school, the local education agency shall provide an alternative means of acquiring required coursework so that graduation may occur on time.

B. Exit exams — States shall accept: 1) exit or end-of-course exams required for graduation from the sending state; or 2) national norm-referenced achievement tests; or 3) alternative testing, in lieu of testing requirements for graduation in the receiving state. In the event the above alternatives cannot be accommodated by the receiving state for a student transferring in his or her senior year, then the provisions of Article VII, Section C shall apply.

C. Transfers during senior year — Should a military student transferring at the beginning or during his or her senior year be ineligible to graduate from the receiving local education agency after all alternatives have been considered, the sending and receiving local education agencies shall ensure the receipt of a diploma from the sending local education agency, if the student meets the graduation requirements of the sending local education agency. In the event that one of the states in question is not a member of this compact, the member state shall use best efforts to facilitate the on-time graduation of the student in accordance with Sections A and B of this Article.

(Added 2011, No. 43, § 1.)

§ 806g State coordination — Article VIII

A. Each member state shall, through the creation of a State Council or use of an existing body or board, provide for the coordination among its agencies of government, local education agencies, and military installations concerning the state’s participation in, and compliance with, this compact and Interstate Commission activities. While each member state may determine the membership of its own State Council, its membership must include at least: the state superintendent of education, superintendent of a school district with a high concentration of military children, representative from a military installation, one representative each from the legislative and executive branches of government, and other offices and stakeholder groups the State Council deems appropriate. A member state that does not have a school district deemed to contain a high concentration of military children may appoint a superintendent from another school district to represent local education agencies on the State Council.

B. The State Council of each member state shall appoint or designate a military family education liaison to assist military families and the state in facilitating the implementation of this compact.

C. The compact commissioner responsible for the administration and management of the state’s participation in the compact shall be appointed by the Governor or as otherwise determined by each member state.

D. The compact commissioner and the military family education liaison designated herein shall be ex-officio members of the State Council, unless either is already a full voting member of the State Council.

(Added 2011, No. 43, § 1.)

§ 806h Interstate commission on educational opportunity for military children — Article IX

The member states hereby create the “Interstate Commission on Educational Opportunity for Military Children.” The activities of the Interstate Commission are the formation of public policy and are a discretionary state function. The Interstate Commission shall:

A. Be a body corporate and joint agency of the member states and shall have all the responsibilities, powers, and duties set forth herein, and such additional powers as may be conferred upon it by a subsequent concurrent action of the respective legislatures of the member states in accordance with the terms of this compact.

B. Consist of one Interstate Commission voting representative from each member state who shall be that state’s compact commissioner.

  1. Each member state represented at a meeting of the Interstate Commission is entitled to one vote.

  2. A majority of the total member states shall constitute a quorum for the transaction of business, unless a larger quorum is required by the bylaws of the Interstate Commission.

  3. A representative shall not delegate a vote to another member state. In the event the compact commissioner is unable to attend a meeting of the Interstate Commission, the Governor or State Council may delegate voting authority to another person from their state for a specified meeting.

  4. The bylaws may provide for meetings of the Interstate Commission to be conducted by telecommunication or electronic communication.

C. Consist of ex-officio, nonvoting representatives who are members of interested organizations. Such ex-officio members, as defined in the bylaws, may include but not be limited to, members of the representative organizations of military family advocates, local education agency officials, parent and teacher groups, the U.S. Department of Defense, the Education Commission of the States, the Interstate Agreement on the Qualification of Educational Personnel, and other interstate compacts affecting the education of children of military members.

D. Meet at least once each calendar year. The chairperson may call additional meetings and, upon the request of a simple majority of the member states, shall call additional meetings.

E. Establish an executive committee, whose members shall include the officers of the Interstate Commission and such other members of the Interstate Commission as determined by the bylaws. Members of the executive committee shall serve a one-year term. Members of the executive committee shall be entitled to one vote each. The executive committee shall have the power to act on behalf of the Interstate Commission, with the exception of rulemaking, during periods when the Interstate Commission is not in session. The executive committee shall oversee the day-to-day activities of the administration of the compact, including enforcement and compliance with the provisions of the compact, its bylaws and rules, and other such duties as deemed necessary. The U.S. Dept. of Defense shall serve as an ex-officio, nonvoting member of the executive committee.

F. Establish bylaws and rules that provide for conditions and procedures under which the Interstate Commission shall make its information and official records available to the public for inspection or copying. The Interstate Commission may exempt from disclosure information or official records to the extent they would adversely affect personal privacy rights or proprietary interests.

G. Give public notice of all meetings and all meetings shall be open to the public, except as set forth in the rules or as otherwise provided in the compact. The Interstate Commission and its committees may close a meeting, or portion thereof, where it determines by two-thirds’ vote that an open meeting would be likely to:

  1. Relate solely to the Interstate Commission’s internal personnel practices and procedures;

  2. Disclose matters specifically exempted from disclosure by federal and state statute;

  3. Disclose trade secrets or commercial or financial information which is privileged or confidential;

  4. Involve accusing a person of a crime, or formally censuring a person;

  5. Disclose information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

  6. Disclose investigative records compiled for law enforcement purposes; or

  7. Specifically relate to the Interstate Commission’s participation in a civil action or other legal proceeding.

H. Cause its legal counsel or designee to certify that a meeting may be closed and shall reference each relevant exemptible provision for any meeting, or portion of a meeting, which is closed pursuant to this provision. The Interstate Commission shall keep minutes which shall fully and clearly describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken, and the reasons therefor, including a description of the views expressed and the record of a roll call vote. All documents considered in connection with an action shall be identified in such minutes. All minutes and documents of a closed meeting shall remain under seal, subject to release by a majority vote of the Interstate Commission.

I. Collect standardized data concerning the educational transition of the children of military families under this compact as directed through its rules which shall specify the data to be collected, the means of collection and data exchange and reporting requirements. Such methods of data collection, exchange, and reporting shall, insofar as is reasonably possible, conform to current technology and coordinate its information functions with the appropriate custodian of records as identified in the bylaws and rules.

J. Create a process that permits military officials, education officials, and parents to inform the Interstate Commission if and when there are alleged violations of the compact or its rules or when issues subject to the jurisdiction of the compact or its rules are not addressed by the state or local education agency. This section shall not be construed to create a private right of action against the Interstate Commission, any member state, or any local education agency.

(Added 2011, No. 43, § 1.)

§ 806i Powers and duties of the interstate commission — Article X

The Interstate Commission shall have the following powers:

A. To provide for dispute resolution among member states.

B. To promulgate rules and take all necessary actions to effect the goals, purposes, and obligations as enumerated in this compact. The rules shall have the force and effect of a rule promulgated under the Vermont Administrative Procedure Act as found in 3 V.S.A. chapter 25 and shall be binding in the compact states to the extent and in the manner provided in this compact.

C. To issue, upon request of a member state, advisory opinions concerning the meaning or interpretation of the interstate compact, its bylaws, rules, and actions.

D. To monitor compliance with the compact provisions, the rules promulgated by the Interstate Commission, and the bylaws. Any action to enforce compliance with the compact provisions by the Interstate Commission shall be brought against a member state only.

E. To establish and maintain offices which shall be located within one or more of the member states.

F. To purchase and maintain insurance and bonds.

G. To borrow, accept, hire, or contract for services of personnel.

H. To establish and appoint committees including but not limited to an executive committee as required by Article IX, Section E, which shall have the power to act on behalf of the Interstate Commission in carrying out its powers and duties hereunder.

I. To elect or appoint such officers, attorneys, employees, agents, or consultants, and to fix their compensation, define their duties, and determine their qualifications; and to establish the Interstate Commission’s personnel policies and programs relating to conflicts of interest, rates of compensation, and qualifications of personnel.

J. To accept any and all donations and grants of money, equipment, supplies, materials, and services, and to receive, utilize, and dispose of it.

K. To lease, purchase, accept contributions or donations of, or otherwise to own, hold, improve, or use any property, real, personal, or mixed.

L. To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed.

M. To establish a budget and make expenditures.

N. To adopt a seal and bylaws governing the management and operation of the Interstate Commission.

O. To report annually to the legislatures, governors, judiciary, and state councils of the member states concerning the activities of the Interstate Commission during the preceding year. Such reports shall also include any recommendations that may have been adopted by the Interstate Commission.

P. To coordinate education, training, and public awareness regarding the compact and its implementation and operation for officials and parents involved in such activity.

Q. To establish uniform standards for the reporting, collecting, and exchanging of data.

R. To maintain corporate books and records in accordance with the bylaws.

S. To perform such functions as may be necessary or appropriate to achieve the purposes of this compact.

T. To provide for the uniform collection and sharing of information between and among member states, schools, and military families under this compact.

(Added 2011, No. 43, § 1.)

§ 806j Organization and operation of the interstate commission — Article XI

A. The Interstate Commission shall, by a majority of the members present and voting, within 12 months after the first Interstate Commission meeting, adopt bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes of the compact, including, but not limited to:

  1. Establishing the fiscal year of the Interstate Commission;

  2. Establishing an executive committee, and such other committees as may be necessary;

  3. Providing for the establishment of committees and for governing any general or specific delegation of authority or function of the Interstate Commission;

  4. Providing reasonable procedures for calling and conducting meetings of the Interstate Commission, and ensuring reasonable notice of each such meeting;

  5. Establishing the titles and responsibilities of the officers and staff of the Interstate Commission;

  6. Providing a mechanism for concluding the operations of the Interstate Commission and the return of surplus funds that may exist upon the termination of the compact after the payment and reserving of all of its debts and obligations; and

  7. Providing “start up” rules for initial administration of the compact.

B. The Interstate Commission shall, by a majority of the members, elect annually from among its members a chairperson, a vice chairperson, and a treasurer, each of whom shall have such authority and duties as may be specified in the bylaws. The chairperson or, in the chairperson’s absence or disability, the vice chairperson, shall preside at all meetings of the Interstate Commission. The officers so elected shall serve without compensation or remuneration from the Interstate Commission; provided that, subject to the availability of budgeted funds, the officers shall be reimbursed for ordinary and necessary costs and expenses incurred by them in the performance of their responsibilities as officers of the Interstate Commission.

C. Executive Committee, Officers, and Personnel.

  1. The executive committee shall have such authority and duties as may be set forth in the bylaws, including, but not limited to:

a. Managing the affairs of the Interstate Commission in a manner consistent with the bylaws and purposes of the Interstate Commission;

b. Overseeing an organizational structure within, and appropriate procedures for the Interstate Commission to provide for the creation of rules, operating procedures, and administrative and technical support functions; and

c. Planning, implementing, and coordinating communications and activities with other state, federal, and local government organizations in order to advance the goals of the Interstate Commission.

  1. The executive committee may, subject to the approval of the Interstate Commission, appoint or retain an executive director for such period, upon such terms and conditions, and for such compensation, as the Interstate Commission may deem appropriate. The executive director shall serve as secretary to the Interstate Commission, but shall not be a Member of the Interstate Commission. The executive director shall hire and supervise such other persons as may be authorized by the Interstate Commission.

D. The Interstate Commission’s executive director and its employees shall be immune from suit and liability, either personally or in their official capacity, for a claim for damage to or loss of property or personal injury or other civil liability caused or arising out of or relating to an actual or alleged act, error, or omission that occurred, or that such person had a reasonable basis for believing occurred, within the scope of Interstate Commission employment, duties, or responsibilities; provided, that such person shall not be protected from suit or liability for damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct of such person.

  1. The liability of the Interstate Commission’s executive director and employees or Interstate Commission representatives, acting within the scope of such person’s employment or duties for acts, errors, or omissions occurring within such person’s state may not exceed the limits of liability set forth under the Constitution and laws of that state for state officials, employees, and agents. The Interstate Commission is considered to be an instrumentality of the states for the purposes of any such action. Nothing in this subsection shall be construed to protect such person from suit or liability for damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct of such person.

  2. The Interstate Commission shall defend the executive director and its employees and, subject to the approval of the Attorney General or other appropriate legal counsel of the member state represented by an Interstate Commission representative, shall defend such Interstate Commission representative in any civil action seeking to impose liability arising out of an actual or alleged act, error, or omission that occurred within the scope of Interstate Commission employment, duties, or responsibilities, or that the defendant had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties, or responsibilities, provided that the actual or alleged act, error, or omission did not result from intentional or willful and wanton misconduct on the part of such person.

  3. To the extent not covered by the state involved, member state, or the Interstate Commission, the representatives or employees of the Interstate Commission shall be held harmless in the amount of a settlement or judgment, including attorney’s fees and costs, obtained against such persons arising out of an actual or alleged act, error, or omission that occurred within the scope of Interstate Commission employment, duties, or responsibilities, or that such persons had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties, or responsibilities, provided that the actual or alleged act, error, or omission did not result from intentional or willful and wanton misconduct on the part of such persons.

(Added 2011, No. 43, § 1.)

§ 806k Rulemaking functions of the interstate commission — Article XII

A. Rulemaking Authority — The Interstate Commission shall promulgate reasonable rules in order to effectively and efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the event the Interstate Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of this Act, or the powers granted hereunder, then such an action by the Interstate Commission shall be invalid and have no force or effect.

B. Rulemaking Procedure — Rules shall be made pursuant to a rulemaking process that substantially conforms to the “Model State Administrative Procedure Act,” of 1981, Uniform Laws Annotated, Vol. 15, p.1 (2000) as amended, as may be appropriate to the operations of the Interstate Commission.

C. Not later than thirty (30) days after a rule is promulgated, any person may file a petition for judicial review of the rule; provided, that the filing of such a petition shall not stay or otherwise prevent the rule from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the Interstate Commission consistent with applicable law and shall not find the rule to be unlawful if the rule represents a reasonable exercise of the Interstate Commission’s authority.

D. If a majority of the legislatures of the compacting states rejects a rule by enactment of a statute or resolution in the same manner used to adopt the compact, then such rule shall have no further force and effect in any compacting state.

(Added 2011, No. 43, § 1.)

§ 806l Oversight, enforcement, and dispute resolution — Article XIII

A. Oversight.

  1. Each member state shall enforce this compact to effectuate the compact’s purposes and intent. The rules promulgated under this act shall have standing as a rule promulgated under the Vermont Administrative Procedure Act as found in 3 V.S.A. chapter 25.

  2. All courts shall take judicial notice of the compact and the rules in any judicial or administrative proceeding in a member state pertaining to the subject matter of this compact which may affect the powers, responsibilities, or actions of the Interstate Commission.

  3. The Interstate Commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the proceeding for all purposes. Failure to provide service of process to the Interstate Commission shall render a judgment or order void as to the Interstate Commission, this compact, or promulgated rules.

B. Default, Technical Assistance, Suspension, and Termination — If the Interstate Commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact, or the bylaws or promulgated rules, the Interstate Commission shall:

  1. Provide written notice to the defaulting state and other member states of the nature of the default, the means of curing the default, and any action taken by the Interstate Commission. The Interstate Commission shall specify the conditions by which the defaulting state must cure its default.

  2. Provide remedial training and specific technical assistance regarding the default.

  3. If the defaulting state fails to cure the default, the defaulting state shall be terminated from the compact upon an affirmative vote of a majority of the member states and all rights, privileges, and benefits conferred by this compact shall be terminated from the effective date of termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of the default.

  4. Suspension or termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the Interstate Commission to the Governor, the majority and minority leaders of the defaulting state’s legislature, and each of the member states.

  5. The state which has been suspended or terminated is responsible for all assessments, obligations, and liabilities incurred through the effective date of suspension or termination, not to exceed $100 per year as provided in Article XIV, Section E, of this compact for each year that the State of Vermont is a member of the compact.

  6. The Interstate Commission shall not bear any costs relating to any state that has been found to be in default or which has been suspended or terminated from the compact, unless otherwise mutually agreed upon in writing between the Interstate Commission and the defaulting state.

  7. The defaulting state may appeal the action of the Interstate Commission by petitioning the U.S. District Court for the District of Columbia or the federal district where the Interstate Commission has its principal offices. The prevailing party shall be awarded all costs of such litigation including reasonable attorney’s fees.

C. Dispute Resolution.

  1. The Interstate Commission shall attempt, upon the request of a member state, to resolve disputes which are subject to the compact and which may arise among member states and between member and non-member states.

  2. The Interstate Commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes as appropriate.

(Added 2011, No. 43, § 1.)

§ 806m Financing of the interstate commission — Article XIV

A. The Interstate Commission shall pay or provide for the payment of the reasonable expenses of its establishment, organization, and ongoing activities.

B. The Interstate Commission may levy on and collect an annual assessment from each member state to cover the cost of the operations and activities of the Interstate Commission and its staff which must be in a total amount sufficient to cover the Interstate Commission’s annual budget as approved each year. The aggregate annual assessment amount shall be allocated based upon a formula to be determined by the Interstate Commission, which shall promulgate a rule binding upon all member states.

C. The Interstate Commission shall not incur obligations of any kind prior to securing the funds adequate to meet the same; nor shall the Interstate Commission pledge the credit of any of the member states, except by and with the authority of the member state.

D. The Interstate Commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Interstate Commission shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the Interstate Commission shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the Interstate Commission.

E. The Interstate Commission may not assess, levy, or collect from Vermont in its annual assessment more than $2,000.00 per year. Other funding sources may be accepted and used to offset expenses related to the State’s participation in the compact.

(Added 2011, No. 43, § 1; amended 2013, No. 56, § 20, eff. May 30, 2013.)

§ 806n Member states, effective date and amendment — Article XV

A. Any state is eligible to become a member state.

B. The compact shall become effective and binding upon legislative enactment of the compact into law by no less than ten (10) of the states. The effective date shall be no earlier than December 1, 2007. Thereafter it shall become effective and binding as to any other member state upon enactment of the compact into law by that state. The governors of non-member states or their designees shall be invited to participate in the activities of the Interstate Commission on a non-voting basis prior to adoption of the compact by all states.

C. The Interstate Commission may propose amendments to the compact for enactment by the member states. No amendment shall become effective and binding upon the Interstate Commission and the member states unless and until it is enacted into law by unanimous consent of the member states.

(Added 2011, No. 43, § 1.)

§ 806o Withdrawal and dissolution — Article XVI

A. Withdrawal.

  1. Once effective, the compact shall continue in force and remain binding upon each and every member state; provided that a member state may withdraw immediately from the compact by specifically repealing the statute which enacted the compact into law.

  2. Withdrawal from this compact shall be by the enactment of a statute repealing the same.

  3. The withdrawing state shall immediately notify the chairperson of the Interstate Commission in writing upon the introduction of legislation repealing this compact in the withdrawing state. The Interstate Commission shall notify the other member states of the withdrawing state’s intent to withdraw within sixty (60) days of its receipt thereof.

  4. The withdrawing state is responsible for all assessments, obligations, and liabilities incurred through the effective date of withdrawal, not to exceed $100 per year as provided in Article XIV, Section E, of this compact for each year that the State of Vermont is a member of the compact.

  5. Reinstatement following withdrawal of a member state shall occur upon the withdrawing state reenacting the compact or upon such later date as determined by the Interstate Commission.

B. Dissolution of Compact.

  1. This compact shall dissolve effective upon the date of the withdrawal or default of the member state which reduces the membership in the compact to one (1) member state.

  2. Upon the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Interstate Commission shall be concluded and surplus funds shall be distributed in accordance with the bylaws.

(Added 2011, No. 43, § 1.)

§ 806p Severability and construction — Article XVII

A. The provisions of this compact shall be severable, and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the compact shall be enforceable.

B. The provisions of this compact shall be liberally construed to effectuate its purposes.

C. Nothing in this compact shall be construed to prohibit the applicability of other interstate compacts to which the states are members.

(Added 2011, No. 43, § 1.)

§ 806q Binding effect of compact and other laws — Article XVIII

A. Other Laws. Nothing herein prevents the enforcement of any other law of a member state.

B. Binding Effect of the Compact.

  1. All lawful actions of the Interstate Commission, including all rules and bylaws promulgated by the Interstate Commission, are binding upon the member states.

  2. All agreements between the Interstate Commission and the member states are binding in accordance with their terms.

  3. In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any member state, such provision shall be ineffective to the extent of the conflict with the constitutional provision in question in that member state.

(Added 2011, No. 43, § 1.)

Chapter 21 Maintenance of Public Schools

§§ 791-805 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 821 School district to maintain public elementary schools or pay tuition

(a) Each school district shall maintain one or more approved schools within the district in which elementary education for its resident students in kindergarten through grade six is provided unless:

(1) the electorate authorizes the school board to provide for the elementary education of the students by paying tuition in accordance with law to one or more public elementary schools in one or more school districts;

(2) the school district is organized to provide only high school education for its students; or

(3) the General Assembly provides otherwise.

(b) [Repealed.]

(c) Notwithstanding subsection (a) of this section, without previous authorization by the electorate, a school board in a district that operates an elementary school may pay tuition for elementary students who reside near a public elementary school in an adjacent district upon request of the student’s parent or guardian, if in the board’s judgment the student’s education can be more conveniently furnished there due to geographic considerations. Within 30 days of the board’s decision, a parent or guardian who is dissatisfied with the decision of the board under this subsection may request a determination by the Secretary, who shall have authority to direct the school board to pay all, some, or none of the student’s tuition and whose decision shall be final.

(d) Notwithstanding subdivision (a)(1) of this section, the electorate of a school district that does not maintain an elementary school may grant general authority to the school board to pay tuition for an elementary student at an approved independent elementary school or an independent school meeting education quality standards pursuant to sections 823 and 828 of this chapter upon notice given by the student’s parent or legal guardian before April 15 for the next academic year.

(Added 1969, No. 298 (Adj. Sess.), § 52; amended 1985, No. 71, § 4; 1987, No. 141 (Adj. Sess.); 1989, No. 271 (Adj. Sess.), §§ 1, 2; 1991, No. 24, § 11; 2009, No. 44, § 13, eff. May 21, 2009; 2011, No. 58, § 29, eff. May 31, 2011; 2011, No. 129 (Adj. Sess.), § 4, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 95, eff. Feb. 14, 2014; 2015, No. 23, § 21.)

§ 821a Repealed

[Repealed]

1985, No. 71, § 5.

§ 822 School district to maintain public high schools or pay tuition

(a) Each school district shall maintain one or more approved high schools in which high school education is provided for its resident students unless:

(1) the electorate authorizes the school board to close an existing high school and to provide for the high school education of its students by paying tuition to a public high school, an approved independent high school, or an independent school meeting education quality standards, to be selected by the parents or guardians of the student, within or outside the State; or

(2) the school district is organized to provide only elementary education for its students.

(b) For purposes of this section, a school district that is organized to provide kindergarten through grade 12 and maintains a program of education for only the first eight years of compulsory school attendance shall be obligated to pay tuition for its resident students for at least four additional years.

(c)(1) A school district may both maintain a high school and furnish high school education by paying tuition:

(A) to a public school as in the judgment of the school board may best serve the interests of the students; or

(B) to an approved independent school or an independent school meeting education quality standards if the school board judges that a student has unique educational needs that cannot be served within the district or at a nearby public school.

(2) The judgment of the board shall be final in regard to the institution the students may attend at public cost.

(Added 1969, No. 298 (Adj. Sess.), § 53; amended 1977, No. 33, § 2; 1989, No. 271 (Adj. Sess.), § 3; 1991, No. 24, § 2; 1997, No. 71 (Adj. Sess.), § 85, eff. March 11, 1998; 2009, No. 44, § 13, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 96, eff. Feb. 14, 2014; 2015, No. 23, § 22.)

§ 822a Public high school choice

(a) Definitions. In this section:

(1) “High school” means a public school or that portion of a public school that offers grades 9 through 12 or some subset of those grades.

(2) “Student” means a student’s parent or guardian if the student is a minor or under guardianship and means a student himself or herself if the student is not a minor.

(b) Limits on transferring students. A sending high school board may limit the number of resident students who transfer to another high school under this section in each year; provided that in no case shall it limit the potential number of new transferring students to fewer than five percent of the resident students enrolled in the sending high school as of October 1 of the academic year in which the calculation is made or 10 students, whichever is fewer; and further provided that in no case shall the total number of transferring students in any year exceed 10 percent of all resident high school students or 40 students, whichever is fewer.

(c) Capacity. On or before February 1 each year, the board of a high school district shall define and announce its capacity to accept students under this section. The Secretary shall develop, review, and update guidelines to assist high school district boards to define capacity limits. Guidelines may include limits based on the capacity of the program, class, grade, school building, measurable adverse financial impact, or other factors, but shall not be based on the need to provide special education services.

(d) Lottery.

(1) Subject to the provisions of subsection (f) of this section, if more than the allowable number of students wish to transfer to a school under this section, then the board of the receiving high school district shall devise a nondiscriminatory lottery system for determining which students may transfer.

(2) Subject to the provisions of subsection (f) of this section, if more than the allowable number of students wish to transfer from a school under this section, then the board of the sending high school district shall devise a nondiscriminatory lottery system for determining which students may transfer; provided, however:

(A) a board shall give preference to the transfer request of a student whose request to transfer from the school was denied in a prior year; and

(B) a board that has established limits under subsection (b) of this section may choose to waive those limits in any year.

(e) Application and notification.

(1) A high school district shall accept applications for enrollment until March 1 of the school year preceding the school year for which the student is applying.

(2) A high school district shall notify each student of acceptance or rejection of the application by April 1 of the school year preceding the school year for which the student is applying.

(3) An accepted student shall notify both the sending and the receiving high schools of his or her decision to enroll or not to enroll in the receiving high school by April 15 of the school year preceding the school year for which the student has applied.

(4) After sending notification of enrollment, a student may enroll in a school other than the receiving high school only if the student, the receiving high school, and the high school in which the student wishes to enroll agree. If the student becomes a resident of a different school district, the student may enroll in the high school maintained by the new district of residence.

(5) If a student who is enrolled in a high school other than in the school district of residence notifies the school district of residence by July 15 of the intent to return to that school for the following school year, the student shall be permitted to return to the high school in the school district of residence without requiring agreement of the receiving district or the sending district.

(f) Enrollment.

(1) An enrolled nonresident student shall be permitted to remain enrolled in the receiving high school without renewed applications in subsequent years unless:

(A) the student graduates;

(B) the student is no longer a Vermont resident; or

(C) the student is expelled from school in accordance with adopted school policy.

(2) A career technical education (CTE) center serving the region in which a receiving high school district is located shall be the CTE center in which a nonresident student under this section is eligible to enroll. The nonresident student shall be eligible to use any transportation the district provides for resident students attending the CTE center.

(g) Tuition and other costs.

(1) Unless the sending and receiving schools agree to a different arrangement, no tuition or other cost shall be charged by the receiving district or paid by the sending district for a student transferring to a different high school under this section; provided, however, a sending high school district shall pay special education and career technical education costs for resident students pursuant to the provisions of this title.

(2) A student transferring to a different high school under this section shall pay no tuition, fee, or other cost that is not also paid by students residing in the receiving district.

(3) A district of residence shall include within its average daily membership any student who transfers to another high school under this section; a receiving school district shall not include any student who transfers to it under this section.

(h) Special education. If a student who is eligible for and receiving special education services chooses to enroll in a high school other than in the high school district of residence, then the receiving high school shall carry out the individualized education program, including placement, developed by the sending high school district. If the receiving high school believes that a student not on an individualized education program may be eligible for special education services or that an existing individualized education program should be altered, it shall notify the sending high school district. When a sending high school district considers eligibility, development of an individualized education program, or changes to a program, it shall give notice of meetings to the receiving high school district and provide an opportunity for representatives of that district to attend the meetings and participate in making decisions.

(i) Suspension and expulsion. A sending high school district is not required to provide services to a resident student during a period of suspension or expulsion imposed by another high school district.

(j) Transportation. Jointly, the superintendent of each supervisory union shall establish and update a statewide clearinghouse providing information to students about transportation options among the high school districts.

(k) Nonapplicability of other laws. The provisions of subsections 824(b) and (c) (amount of tuition), 825(b) and (c) (maximum tuition rate), and 826(a) (notice of tuition change) and section 836 (tuition overcharge and undercharge) of this chapter shall not apply to enrollment in a high school pursuant to this section.

(l) Waiver. If a high school board determines that participation under this section would adversely affect students in its high school, then it may petition the Secretary for an exemption. The Secretary’s decision shall be final.

(m) Report. Notwithstanding 2 V.S.A. § 20(d), the Secretary shall report annually in January to the Senate and House Committees on Education on the implementation of public high school choice as provided in this section, including a quantitative and qualitative evaluation of the program’s impact on the quality of educational services available to students and the expansion of educational opportunities.

(Added 2011, No. 129 (Adj. Sess.), § 34; amended 2013, No. 56, § 4, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 97, eff. Feb. 14, 2014.)

§ 823 Elementary tuition [Effective until contingency met; see also 16 V.S.A. § 823 effective July 1, 2028 if contingency met, set out below]

(a) Tuition for elementary students shall be paid by the district in which the student is a resident. The district shall pay the full tuition charged its students attending a public elementary school. If a payment made to a public elementary school is three percent more or less than the calculated net cost per elementary pupil in the receiving school district for the year of attendance, the district shall be reimbursed, credited, or refunded pursuant to section 836 of this title. Notwithstanding the provisions of this subsection or of subsection 825(b) of this title, the boards of both the receiving and sending districts may enter into tuition agreements with terms differing from the provisions of those subsections, provided that the receiving district must offer identical terms to all sending districts, and further provided that the statutory provisions apply to any sending district that declines the offered terms.

(b) Unless the electorate of a school district authorizes payment of a higher amount at an annual or special meeting warned for the purpose, the tuition paid to an approved independent elementary school or an independent school meeting education quality standards shall not exceed the least of:

(1) the average announced tuition of Vermont union elementary schools for the year of attendance;

(2) the tuition charged by the approved independent school for the year of attendance; or

(3) the average per-pupil tuition the district pays for its other resident elementary students in the year in which the student is enrolled in the approved independent school.

(Added 1969, No. 298 (Adj. Sess.), § 54; amended 1989, No. 271 (Adj. Sess.), § 4; 2003, No. 76 (Adj. Sess.), § 29, eff. Feb. 17, 2004; 2005, No. 54, § 7; 2007, No. 66, § 5; 2009, No. 44, § 13, eff. May 21, 2009; 2011, No. 58, § 30, eff. May 31, 2011; 2015, No. 23, § 23.)

§ 823 Tuition [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 823 effective until contingency met, set out above]

[Subsection (a) effective July 1, 2028 if contingency in 2025, No. 73, § 70(f) is met.]

(a) Tuition for students shall be paid by the district in which the student is a resident. The district shall pay to a receiving school for each resident student attending the receiving school an amount equal to the base amount contained in subdivision 4001(16) of this title multiplied by the sum of one and any weights applicable to the resident student under section 4010 of this title.

[Subsection (b) effective July 1, 2028 if contingency in 2025, No. 73, § 70(g) is met.]

(b)(1) In addition to the tuition amount calculated in subsection (a) of this section, a receiving school may charge, and a sending school shall be required to pay, an additional fee in the amount of the product of the base amount and up to 0.05 for each student attending the receiving school in grades nine through 12 only if the following conditions are met:

(A) the receiving school has received approval from the State Board of Education to charge the additional fee under this subsection (b), which approval shall be granted in accordance with rules adopted by the State Board; and

(B) the electorate of each school district with at least one student attending the receiving school has approved supplemental district spending, as defined in 32 V.S.A. § 5401, for the purpose of this subsection and in an amount sufficient to cover the additional fee authorized under this subsection (b).

(2) For the purposes of this subsection, a receiving school shall not include an approved independent school in Vermont functioning as an approved area career and technical center.

[Subsection (c) effective July 1, 2028 if contingency in 2025, No. 73, § 70(g) is met.]

(c) A receiving school that elects and is eligible to charge an additional fee pursuant to subsection (b) of this section shall charge the same additional fee for each student attending on a publicly funded tuition basis pursuant to chapter 21 of this title. A receiving school is prohibited from charging different fees pursuant to this section to different school districts.

[Subsection (d) effective July 1, 2028 if contingency in 2025, No. 73, § 70(f) is met.]

(d) Notwithstanding subsections (a), (b), and (c) of this section, or any other provision of law to the contrary, the district shall pay the full tuition charged its students attending an approved independent school in Vermont functioning as an approved area career and technical center.

(Added 1969, No. 298 (Adj. Sess.), § 54; amended 1989, No. 271 (Adj. Sess.), § 4; 2003, No. 76 (Adj. Sess.), § 29, eff. Feb. 17, 2004; 2005, No. 54, § 7; 2007, No. 66, § 5; 2009, No. 44, § 13, eff. May 21, 2009; 2011, No. 58, § 30, eff. May 31, 2011; 2015, No. 23, § 23; 2025, No. 73, § 27, eff. July 1, 2028, if contingencies met.)

§ 824 High school tuition

(a) Tuition for high school students shall be paid by the school district in which the student is a resident.

(b) Except as otherwise provided for technical students, the district shall pay the full tuition charged its students attending a public high school in Vermont or an adjoining state or a public or approved independent school in Vermont functioning as an approved area career technical center, or an independent school meeting education quality standards; provided:

(1) If a payment made to a public high school or an independent school meeting education quality standards is three percent more or less than the calculated net cost per secondary pupil in the receiving school district or independent school for the year of attendance then the district or school shall be reimbursed, credited, or refunded pursuant to section 836 of this title.

(2) Notwithstanding the provisions of this subsection or of subsection 825(b) of this title, the board of the receiving public school district, public or approved independent school functioning as an area career technical center, or independent school meeting education quality standards may enter into tuition agreements with the boards of sending districts that have terms differing from the provisions of those subsections, provided that the receiving district or school must offer identical terms to all sending districts, and further provided that the statutory provisions apply to any sending district that declines the offered terms.

(c) The district shall pay an amount not to exceed the average announced tuition of Vermont union high schools for the year of attendance for its students enrolled in an approved independent school not functioning as a Vermont area career technical center, or any higher amount approved by the electorate at an annual or special meeting warned for that purpose.

(Added 1969, No. 298 (Adj. Sess.), § 55; amended 1971, No. 52, § 5, eff. April 14, 1971; 1975, No. 27, § 1, eff. Jan. 1, 1976; 1983, No. 247 (Adj. Sess.), § 3; 1991, No. 24, § 3; 1991, No. 24, § 3; 1991, No. 204 (Adj. Sess.), § 7; 1995, No. 34, § 2; 1997, No. 60, § 8, eff. June 26, 1997; 1997, No. 71 (Adj. Sess.), § 86, eff. March 11, 1998; 1997, No. 138 (Adj. Sess.), § 21; 2001, No. 8, § 9; 2005, No. 54, § 8; 2007, No. 66, § 6; 2009, No. 44, § 13, eff. May 21, 2009; 2015, No. 23, § 24.)

§ 824 High school tuition [Repealed July 1, 2029 if contingency met]

(Added 1969, No. 298 (Adj. Sess.), § 55; amended 1971, No. 52, § 5, eff. April 14, 1971; 1975, No. 27, § 1, eff. Jan. 1, 1976; 1983, No. 247 (Adj. Sess.), § 3; 1991, No. 24, § 3; 1991, No. 24, § 3; 1991, No. 204 (Adj. Sess.), § 7; 1995, No. 34, § 2; 1997, No. 60, § 8, eff. June 26, 1997; 1997, No. 71 (Adj. Sess.), § 86, eff. March 11, 1998; 1997, No. 138 (Adj. Sess.), § 21; 2001, No. 8, § 9; 2005, No. 54, § 8; 2007, No. 66, § 6; 2009, No. 44, § 13, eff. May 21, 2009; 2015, No. 23, § 24; repealed by 2025, No. 73, § 28.)

§ 825 Maximum tuition rate; calculated net cost per pupil defined [Repealed July 1, 2029 if contingency met]

(a) Calculated net cost per pupil for purposes of this chapter shall be defined by the Secretary. Expenditures shall include those for equipment and school building construction, additions, or renovations. Expenditures excluded shall be:

(1) transportation costs incurred by the receiving school district for its resident students;

(2) transportation costs for which the receiving school district receives reimbursement;

(3) that portion of the total cost that is provided by direct grants from State or federal sources for salaries or other specific expenses;

(4) expenditures for maintenance, and payments of principal and interest for buildings used exclusively for boarding students if any;

(5) expenditures for special education; and

(6) tuition payments for career technical education.

(b) In no case shall the tuition charged be such that the ratio of the total tuition received to the total cost of operation of the receiving school, or school district, exceeds the ratio of the number of tuition-paying students to the total number of students enrolled in the receiving school, or school district.

(c) The Secretary shall investigate complaints by a school board regarding tuition and may, within the limits of funds appropriated for this specific purpose, contract for limited scope audits of the annual statistical reports submitted by school districts for the purpose of determining the accuracy of the allocation of revenues and expenditures to elementary and secondary tuition rates.

(Added 1969, No. 298 (Adj. Sess.), § 56; amended 1987, No. 235 (Adj. Sess.), § 10; 1997, No. 138 (Adj. Sess.), § 23, eff. April 27, 1998; 2005, No. 54, § 9; 2013, No. 92 (Adj. Sess.), § 98, eff. Feb. 14, 2014; 2021, No. 20, § 58; contingently repealed on July 1, 2029 by 2025, No. 73, § 28.)

§ 826 Notice of tuition rates; special education charges

(a) A school board, or the board of trustees of an independent school meeting education quality standards, that proposes to increase tuition charges shall notify the school board of the school district from which its nonresident students come, and the Secretary, of the proposed increase on or before January 15 in any year; such increases shall not become effective without the notice and not until the following school year.

(b) A school board or the board of trustees of an independent school meeting education quality standards may establish a separate tuition for one or more special education programs. No such tuition shall be established unless the State Board has by rule defined the program as of a type that may be funded by a separate tuition. Any such tuition shall be announced in accordance with the provisions of subsection (a) of this section. The amount of tuition shall reflect the net cost per pupil in the program. The announcement of tuition shall describe the special education services included or excluded from coverage. Tuition for part-time students shall be reduced proportionally.

(c) Excess special education costs incurred by a supervisory union in providing special education services to a student beyond those covered by tuition may be charged to the student’s supervisory union for the district of residence. However, only actual costs or actual proportionate costs attributable to the student may be charged.

(d) The State Board shall adopt rules relating to the types of special education programs that may establish tuition charges and relating to methods and times of calculating excess charges.

(Added 1969, No. 298 (Adj. Sess.), § 57; amended 1987, No. 235 (Adj. Sess.), § 9; 1991, No. 24, § 12; 1995, No. 34, § 3; 2001, No. 8, § 10; 2009, No. 44, § 13, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 99, eff. Feb. 14, 2014; 2015, No. 23, § 25; 2017, No. 173 (Adj. Sess.), § 6, eff. May 25, 2018.)

§ 826 Notice of tuition rates; special education charges [Repealed July 1, 2029 if contingency met]

(Added 1969, No. 298 (Adj. Sess.), § 57; amended 1987, No. 235 (Adj. Sess.), § 9; 1991, No. 24, § 12; 1995, No. 34, § 3; 2001, No. 8, § 10; 2009, No. 44, § 13, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 99, eff. Feb. 14, 2014; 2015, No. 23, § 25; 2017, No. 173 (Adj. Sess.), § 6, eff. May 25, 2018; repealed by 2025, No. 73, § 28.)

§ 827 Designation of a public high school or an approved independent high school as the public high school of a school district

(a) A school district not maintaining an approved public high school may vote on such terms or conditions as it deems appropriate, to designate three or fewer approved independent or public high schools as the public high school or schools of the district.

(b) Except as otherwise provided in this section, if the board of trustees or the school board of a designated school votes to accept this designation, the school shall be regarded as a public school for tuition purposes under subsection 824(b) of this title, and the sending school district shall pay tuition only to that school, and to any other school designated under this section, until such time as the sending school district or the designated school votes to rescind the designation.

(c) A parent or legal guardian who is dissatisfied with the instruction provided at a designated school or who cannot obtain for his or her child the kind of course or instruction desired there, or whose child can be better accommodated in an approved independent or public high school nearer his or her home during the next academic year, may request on or before April 15 that the school board pay tuition to another approved independent or public high school selected by the parent or guardian.

(d) The school board may pay tuition to another approved high school as requested by the parent or legal guardian if in its judgment that will best serve the interests of the student. Its decision shall be final in regard to the institution the student may attend. If the board approves the parent’s request, the board shall pay tuition for the student in an amount not to exceed the least of:

(1) The statewide average announced tuition of Vermont union high schools.

(2) The per-pupil tuition the district pays to the designated school in the year in which the student is enrolled in the nondesignated school. If the district has designated more than one school pursuant to this section, then it shall be the lowest per-pupil tuition paid to a designated school.

(3) The tuition charged by the approved nondesignated school in the year in which the student is enrolled.

(e) Notwithstanding any other provision of law to the contrary:

(1) the school districts of Pawlet, Rupert, and Wells may designate a public high school located in New York as the public high school of the district pursuant to the provisions of this section;

(2) unless otherwise directed by an affirmative vote of the school district, when the Wells Board approves parental requests to pay tuition to a nondesignated approved independent or public school, the Board shall pay tuition in an amount not to exceed the base education amount as determined under section 4011 of this title for the fiscal year in which tuition is being paid; and

(3) unless otherwise directed by an affirmative vote of the school district, when the Strafford Board approves a parental request to pay tuition to a nondesignated approved independent or public school, the Board shall pay tuition to the nondesignated school pursuant to section 824 of this title for the year in which the student is enrolled; provided, however, that it shall not pay tuition in an amount that exceeds the tuition paid to the designated school for the same academic year.

(Added 1969, No. 298 (Adj. Sess.), § 58; amended 1989, No. 271 (Adj. Sess.), § 5; 1991, No. 24, § 4; 2009, No. 44, § 13, eff. May 21, 2009; 2009, No. 153 (Adj. Sess.), § 21a; 2011, No. 156 (Adj. Sess.), § 33, eff. May 16, 2012; 2015, No. 46, § 45.)

§ 828 Tuition to approved schools; age; appeal

(a) A school district shall not pay the tuition of a student except to:

(1) a public school located in Vermont;

(2) an approved independent school that:

(A) is located in Vermont;

(B) is approved under section 166 of this title on or before July 1, 2025;

(C) is located within either:

(i) a supervisory district that does not operate a public school for some or all grades as of July 1, 2024; or

(ii) a supervisory union with one or more member school districts that does not operate a public school for some or all grades as of July 1, 2024;

(D) had at least 25 percent of its student enrollment composed of students attending on a district-funded tuition basis pursuant to chapter 21 of this title during the 2023–2024 school year; and

(E) complies with the minimum class size requirements contained in subdivision 165(a)(9) of this title and State Board rule; provided, however, that if a school is unable to comply with the class size minimum standards due to geographic isolation or a school has developed an implementation plan to meet the class size minimum requirements, the school may ask the State Board to grant it a waiver from this subdivision (E), which decision shall be final;

(3) an independent school meeting education quality standards;

(4) a tutorial program approved by the State Board;

(5) an approved education program;

(6) a public school located in another state; or

(7) a therapeutic approved independent school located in Vermont or another state or country that is approved under the laws of that state or country.

(b) Payment of tuition on behalf of a person shall not be denied on account of age.

(c) Unless otherwise provided, a person who is aggrieved by a decision of a school board relating to eligibility for tuition payments, the amount of tuition payable, or the school the person may attend, may appeal to the State Board and its decision shall be final.

(d) As used in this section, “therapeutic approved independent school” means an approved independent school that limits enrollment for publicly funded students residing in Vermont to students who are on an individualized education program or plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, or who are enrolled pursuant to a written agreement between a local education agency and the school or pursuant to a court order.

(Added 1969, No. 298 (Adj. Sess.), § 59; amended 1989, No. 271 (Adj. Sess.), § 6; 1991, No. 24, § 11; 1995, No. 157 (Adj. Sess.), § 3; 2009, No. 44, § 13, eff. May 21, 2009; 2015, No. 23, § 26; 2021, No. 127 (Adj. Sess.), § 21, eff. July 1, 2024; 2025, No. 73, § 21, eff. July 1, 2025.)

§ 829 Prekindergarten education

(a) Definitions. As used in this section:

(1) “Prekindergarten child” means a child who, as of the date established by the district of residence for kindergarten eligibility, is three or four years of age or is five years of age but is not yet enrolled in kindergarten.

(2) “Prekindergarten education” means services designed to provide to prekindergarten children developmentally appropriate early development and learning experiences based on Vermont’s early learning standards.

(3) “Prequalified private provider” means a private provider of prekindergarten education that is qualified pursuant to subsection (c) of this section.

(b) Access to publicly funded prekindergarten education.

(1) No fewer than ten hours per week of publicly funded prekindergarten education shall be available for 35 weeks annually to each prekindergarten child whom a parent or guardian wishes to enroll in an available, prequalified program operated by a public school or a private provider.

(2) If a parent or guardian chooses to enroll a prekindergarten child in an available, prequalified program, then, pursuant to the parent or guardian’s choice, the school district of residence shall:

(A) pay tuition pursuant to subsections (d) and (h) of this section upon the request of the parent or guardian to:

(i) a prequalified private provider; or

(ii) a public school located outside the district that operates a prekindergarten program that has been prequalified pursuant to subsection (c) of this section; or

(B) enroll the child in the prekindergarten education program that it operates.

(3) If requested by the parent or guardian of a prekindergarten child, the school district of residence shall pay tuition to a prequalified program operated by a private provider or a public school in another district even if the district of residence operates a prekindergarten education program.

(4) If the supply of prequalified private and public providers is insufficient to meet the demand for publicly funded prekindergarten education in any region of the State, nothing in this section shall be construed to require a district to begin or expand a program to satisfy that demand; but rather, in collaboration with the Agencies of Education and of Human Services, the local Building Bright Futures Council shall meet with school districts and private providers in the region to develop a regional plan to expand capacity.

(c) Prequalification. Pursuant to rules jointly developed and overseen by the Secretaries of Education and of Human Services and adopted by the State Board pursuant to 3 V.S.A. chapter 25, the Agencies jointly may determine that a private or public provider of prekindergarten education is qualified for purposes of this section and include the provider in a publicly accessible database of prequalified providers. At a minimum, the rules shall define the process by which a provider applies for and maintains prequalification status, shall identify the minimum quality standards for prequalification, and shall include the following requirements:

(1) A program of prekindergarten education, whether provided by a school district or a private provider, shall have received:

(A) National Association for the Education of Young Children (NAEYC) accreditation;

(B) at least four stars in the Department for Children and Families’ STARS system; or

(C) three stars in the STARS system if the provider has developed a plan, approved by the Commissioner for Children and Families and the Secretary of Education, to achieve four or more stars.

(2) A licensed provider shall employ or contract for the services of at least one teacher who is licensed and endorsed in early childhood education or in early childhood special education under chapter 51 of this title.

(3) A registered home provider that is not licensed and endorsed in early childhood education or early childhood special education shall receive regular, active supervision and training from a teacher who is licensed and endorsed in early childhood education or in early childhood special education under chapter 51 of this title.

(d) Tuition, budgets, and average daily membership.

(1) On behalf of a resident prekindergarten child, a district shall pay tuition for prekindergarten education for ten hours per week for 35 weeks annually to a prequalified private provider or to a public school outside the district that is prequalified pursuant to subsection (c) of this section; provided, however, that the district shall pay tuition for weeks that are within the district’s academic year. Tuition paid under this section shall be at a statewide rate, which may be adjusted regionally, that is established annually through a process jointly developed and implemented by the Agencies of Education and of Human Services. A district shall pay tuition upon:

(A) receiving notice from the child’s parent or guardian that the child is or will be admitted to the prekindergarten education program operated by the prequalified private provider or the other district; and

(B) concurrent enrollment of the prekindergarten child in the district of residence for purposes of budgeting and determining average daily membership.

(2) In addition to any direct costs of operating a prekindergarten education program, a district of residence shall include anticipated tuition payments and any administrative, quality assurance, quality improvement, transition planning, or other prekindergarten-related costs in its annual budget presented to the voters.

(3) Pursuant to subdivision 4001(1)(C) of this title, the district of residence may include within its average daily membership any prekindergarten child for whom it has provided prekindergarten education or on whose behalf it has paid tuition pursuant to this section.

(4) A prequalified private provider may receive additional payment directly from the parent or guardian only for prekindergarten education in excess of the hours paid for by the district pursuant to this section or for child care services, or both. The provider is not bound by the statewide rate established in this subsection when determining the rates it will charge the parent or guardian.

(e) Rules. The Secretary of Education and the Commissioner for Children and Families shall jointly develop and agree to rules and present them to the State Board for adoption under 3 V.S.A. chapter 25 as follows:

(1) To permit private providers that are not prequalified pursuant to subsection (c) of this section to create new or continue existing partnerships with school districts through which the school district provides supports that enable the provider to fulfill the requirements of subdivision (c)(2) or (3), and through which the district may or may not make in-kind payments as a component of the statewide tuition established under this section.

(2) To authorize a district to begin or expand a school-based prekindergarten education program only upon prior approval obtained through a process jointly overseen by the Secretaries of Education and of Human Services, which shall be based upon analysis of the number of prekindergarten children residing in the district and the availability of enrollment opportunities with prequalified private providers in the region. Where the data are not clear or there are other complex considerations, the Secretaries may choose to conduct a community needs assessment.

(3) To require that the school district provides opportunities for effective parental participation in the prekindergarten education program.

(4) To establish a process by which:

(A) a parent or guardian notifies the district that the prekindergarten child is or will be admitted to a prekindergarten education program not operated by the district and concurrently enrolls the child in the district pursuant to subdivision (d)(1) of this section;

(B) a district:

(i) pays tuition pursuant to a schedule that does not inhibit the ability of a parent or guardian to enroll a prekindergarten child in a prekindergarten education program or the ability of a prequalified private provider to maintain financial stability; and

(ii) enters into an agreement with any provider to which it will pay tuition regarding quality assurance, transition, and any other matters; and

(C) a provider that has received tuition payments under this section on behalf of a prekindergarten child notifies a district that the child is no longer enrolled.

(5) To establish a process to calculate an annual statewide tuition rate that is based upon the actual cost of delivering ten hours per week of prekindergarten education that meets all established quality standards and to allow for regional adjustments to the rate.

(6) [Repealed.]

(7) To require a district to include identifiable costs for prekindergarten programs and essential early education services in its annual budgets and reports to the community.

(8) To require a district to report to the Agency of Education annual expenditures made in support of prekindergarten education, with distinct figures provided for expenditures made from the General Fund, from the Education Fund, and from all other sources, which shall be specified.

(9) To provide an administrative process for:

(A) a parent, guardian, or provider to challenge an action of a school district or the State when the complainant believes that the district or State is in violation of State statute or rules regarding prekindergarten education; and

(B) a school district to challenge an action of a provider or the State when the district believes that the provider or the State is in violation of State statute or rules regarding prekindergarten education.

(10) To establish a system by which the Agency of Education and Department for Children and Families shall jointly monitor and evaluate prekindergarten education programs to promote optimal results for children that support the relevant population-level outcomes set forth in 3 V.S.A. § 2311 and to collect data that will inform future decisions. The Agency and Department shall be required to report annually to the General Assembly in January. At a minimum, the system shall monitor and evaluate:

(A) programmatic details, including the number of children served, the number of private and public programs operated, and the public financial investment made to ensure access to quality prekindergarten education;

(B) the quality of public and private prekindergarten education programs and efforts to ensure continuous quality improvements through mentoring, training, technical assistance, and otherwise; and

(C) the results for children, including school readiness and proficiency in numeracy and literacy.

(11) To establish a process for documenting the progress of children enrolled in prekindergarten education programs and to require public and private providers to use the process to:

(A) help individualize instruction and improve program practice; and

(B) collect and report child progress data to the Secretary of Education on an annual basis.

(f) Other provisions of law. Section 836 of this title shall not apply to this section.

(g) Limitations. Nothing in this section shall be construed to permit or require payment of public funds to a private provider of prekindergarten education in violation of Chapter I, Article 3 of the Vermont Constitution or in violation of the Establishment Clause of the U.S. Constitution.

(h) Geographic limitations.

(1) Notwithstanding the requirement that a district pay tuition to any prequalified public or private provider in the State, a school board may choose to limit the geographic boundaries within which the district shall pay tuition by paying tuition solely to those prequalified providers in which parents and guardians choose to enroll resident prekindergarten children that are located within the district’s “prekindergarten region” as determined in subdivision (2) of this subsection.

(2) For purposes of this subsection, upon application from the school board, a district’s prekindergarten region shall be determined jointly by the Agencies of Education and of Human Services in consultation with the school board, private providers of prekindergarten education, parents and guardians of prekindergarten children, and other interested parties pursuant to a process adopted by rule under subsection (e) of this section. A prekindergarten region:

(A) shall not be smaller than the geographic boundaries of the school district;

(B) shall be based in part upon the estimated number of prekindergarten children residing in the district and in surrounding districts, the availability of prequalified private and public providers of prekindergarten education, commuting patterns, and other region-specific criteria; and

(C) shall be designed to support existing partnerships between the school district and private providers of prekindergarten education.

(3) If a school board chooses to pay tuition to providers solely within its prekindergarten region, and if a resident prekindergarten child is unable to access publicly funded prekindergarten education within that region, then the child’s parent or guardian may request and in its discretion the district may pay tuition at the statewide rate for a prekindergarten education program operated by a prequalified provider located outside the prekindergarten region.

(4) Except for the narrow exception permitting a school board to limit geographic boundaries under subdivision (1) of this subsection, all other provisions of this section and related rules shall continue to apply.

(Added 2007, No. 62, § 3; amended 2007, No. 132 (Adj. Sess.), § 1; 2011, No. 129 (Adj. Sess.), § 9; 2013, No. 92 (Adj. Sess.), § 100, eff. Feb. 14, 2014; 2013, No. 166 (Adj. Sess.), § 1, eff. May 28, 2014; 2015, No. 11, § 13; 2017, No. 49, § 45, eff. May 23, 2017; 2021, No. 166 (Adj. Sess.), § 15, eff. July 1, 2023.)

§ 830 Repealed

[Repealed]

1989, No. 233 (Adj. Sess.), § 2.

§§ 831, 832 Repealed

[Repealed]

1973, No. 191 (Adj. Sess.), § 2.

§ 833 Repealed

[Repealed]

1983, No. 247 (Adj. Sess.), § 4(3).

§ 834 Duty of care

(a) Each school district and its employees owe its students a duty of ordinary care to prevent the students from being exposed to unreasonable risk, from which it is foreseeable that injury is likely to occur.

(b) School districts and their employees do not owe their students a duty of immediate supervision at all times and under all circumstances.

(Added 1983, No. 122 (Adj. Sess.).)

§ 835 Lemington, Bloomfield, Brunswick, Granby, Guildhall, and Maidstone; tuitioning of elementary students

The Lemington, Bloomfield, Brunswick, Granby, Guildhall, and Maidstone school districts may provide for the elementary education of the students residing in their districts by paying tuition to public elementary schools in the State of New Hampshire. Notwithstanding the provisions of section 823 of this title, school districts affected by this section shall pay the full tuition charged by a public elementary school in New Hampshire.

(Added 1993, No. 72; amended 2005, No. 182 (Adj. Sess.), § 4; 2007, No. 192 (Adj. Sess.), § 6.029.)

§ 836 Tuition overcharge or undercharge

(a) Annually, on or before November 1, the Secretary shall inform each school board of a receiving public school, each board of trustees of a receiving approved independent school for which the Secretary has calculated a net cost per pupil, and each sending school district in Vermont of the calculated net cost per elementary or secondary pupil in the receiving schools. Each school board or board of trustees of a receiving school shall then determine whether it overcharged or undercharged any sending district for tuition charges and shall notify the district by December 15 of the same year of the amount due or the amount to be refunded or credited.

(b) If the sending district has paid tuition charges in excess of three percent of the calculated net cost per elementary or secondary pupil and is not sending enough students to the receiving district to use the overcharge funds as credit against tuition, the receiving district shall refund the overcharge money by July 31; provided, however, that the refund shall be in the amount that exceeded a three-percent overcharge. Interest owed the sending district on overcharge monies shall begin to accrue on December 1, at the rate of one-half percent per month.

(c) If the receiving district has undercharged tuition in an amount three percent or more than the calculated net cost per elementary or secondary pupil, the sending district shall pay the receiving district an amount equal to the amount of the undercharge that is between three percent and ten percent of the net cost per pupil. If payment is not made by July 31 of the year following the year in which the undercharge was determined, interest owed the receiving district on undercharge monies shall begin to accrue on August 1, at the rate of one percent per month.

(Added 1995, No. 34, § 4; amended 1995, No. 129 (Adj. Sess.), § 1; 1997, No. 138 (Adj. Sess.), § 22; 2005, No. 54, § 10; 2013, No. 60, § 3; 2013, No. 92 (Adj. Sess.), § 102, eff. Feb. 14, 2014.)

§ 836 Tuition overcharge or undercharge [Repealed July 1, 2029 if contingency met]

(Added 1995, No. 34, § 4; amended 1995, No. 129 (Adj. Sess.), § 1; 1997, No. 138 (Adj. Sess.), § 22; 2005, No. 54, § 10; 2013, No. 60, § 3; 2013, No. 92 (Adj. Sess.), § 102, eff. Feb. 14, 2014; repealed by 2025, No. 73, § 28.)

§ 837 School facilities management; training and certification

(a) The Secretary of Education, in consultation with facilities management industry and school operations experts, shall establish guidelines for the training and certification of each person designated as responsible for facilities management for a school district or supervisory union.

(b) The superintendent for each school district or supervisory union shall designate a person with responsibility for facilities management for the school district or supervisory union. The designee for each school district or supervisory union shall receive training and certification pursuant to the guidelines established in subsection (a) of this section.

(Added 2021, No. 72, § 5, eff. June 8, 2021.)

§ 838 Capital improvement plan

(a) Each school district shall develop and maintain a five-year capital operations and improvement plan for the school district and supervisory union, which shall be updated annually.

(b) The capital operations and improvement plan described in subsection (a) of this section shall be in a form developed and prescribed by the Secretary of Education after consultation with facilities management and school operations experts.

(Added 2021, No. 72, § 6, eff. June 8, 2021.)

Chapter 23 Courses of Study

Subchapter 1 Public Schools Generally

§§ 901-905 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 906 Course of study

(a) In public schools, approved and recognized independent schools, and in home study programs, learning experiences shall be provided for students in the minimum course of study.

(b) For purposes of this title, the minimum course of study means learning experiences adapted to a student’s age and ability in the fields of:

(1) basic communication skills, including reading, writing, and the use of numbers;

(2) citizenship, history, and government in Vermont and the United States;

(3) physical education and comprehensive health education, including the effects of tobacco, alcoholic drinks, and drugs on the human system and on society;

(4) English, American, and other literature;

(5) the natural sciences; and

(6) the fine arts.

(Added 1969, No. 298 (Adj. Sess.), § 65; amended 1981, No. 151 (Adj. Sess.), § 4; 1987, No. 132 (Adj. Sess.); 1987, No. 270 (Adj. Sess.), § 4, eff. Sept. 1, 1989; 1989, No. 44, § 4, eff. June 1, 1990.)

§ 907 Lincoln’s birthday

Exercises in commemoration of the birth, life, and services of Abraham Lincoln shall be conducted in all public and independent schools on the last school day before February 12, annually.

(Added 1969, No. 298 (Adj. Sess.), § 67; amended 1991, No. 24, § 11.)

§ 908 Pre-Memorial Day exercises

The last half-day’s session of the public schools before Memorial Day shall be devoted to exercises commemorative of the history of the nation during its wars and to patriotic instruction in the principles of liberty and the equal rights of man.

(Added 1969, No. 298 (Adj. Sess.), § 68.)

§ 909 Tobacco use, alcohol and drug abuse prevention education curriculum

(a) The Secretary, in conjunction with the Division of Health Promotion, where appropriate, shall develop a sequential alcohol and drug abuse prevention education curriculum for elementary and secondary schools. The curriculum shall include teaching about the effects and legal consequences of the possession and use of tobacco products.

(b) The Secretary shall:

(1) Provide for pre-service and in-service training programs for school personnel on alcohol and drug abuse prevention and on the effects and legal consequences of the possession and use of tobacco products. At least one training program shall be made available in electronic format. Each superintendent shall determine the content, duration, and frequency of training on issues concerning alcohol and drug abuse for the districts in his or her supervisory union.

(2) Provide teaching materials that are appropriate to the age and learning ability of the students.

(3) Provide technical assistance to the local school districts for implementation of the curriculum.

(4) Encourage coordination of effort with existing community resources.

(c) [Repealed.]

(Added 1983, No. 51, § 3, eff. April 22, 1983; amended 1987, No. 162 (Adj. Sess.), § 1; 1995, No. 52, § 2; 1997, No. 58, § 11; 2007, No. 154 (Adj. Sess.), § 8; 2013, No. 92 (Adj. Sess.), § 103, eff. Feb. 14, 2014; 2023, No. 6, § 84, eff. July 1, 2023.)

§ 910 Coordination of services to children and adolescents with a severe emotional disturbance

Each town, city, interstate, incorporated, unified, or union school district shall cooperate with the Agency of Education and the Departments of Mental Health, for Children and Families, and of Disabilities, Aging, and Independent Living when coordinating educational services to children and adolescents with a severe emotional disturbance pursuant to the provisions of 33 V.S.A. chapter 43.

(Added 1987, No. 264 (Adj. Sess.), § 4; amended 1989, No. 187 (Adj. Sess.), § 5; 2011, No. 58, § 9, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 104, eff. Feb. 14, 2014.)

§ 911 American Sign Language; foreign language credit

(a) American Sign Language is a visual-gestural system of communication used by many in the Deaf community living in the United States and Canada. It is a complete and complex language that has its own syntax, rhetoric, and grammar that is used to convey information and meaning through signs made with the hands, arms, facial markers, and other body movements.

(b) Any public or independent school may offer American Sign Language for foreign language credit.

(Added 2001, No. 16, § 2.)

§ 912 Student’s right of refusal; animal dissection

(a) A student in a public elementary or secondary school or an approved independent school shall have the right to be excused from participating in any lesson, exercise, or assessment requiring the student to dissect, vivisect, or otherwise harm or destroy an animal or any part of an animal, or to observe any of these activities, as part of a course of instruction.

(b) Each school district and approved independent school shall adopt and implement policies regarding a student’s right to be excused under this section, which shall include:

(1) procedures by which the school shall provide:

(A) timely notification to each student enrolled in the course and to the student’s parent or guardian of the student’s right to be excused from participating in or observing the lesson; and

(B) the process by which a student may exercise this right;

(2) alternative education methods through which a student excused under this section can learn and be assessed on material required by the course; and

(3) a statement that no student shall be discriminated against based on his or her decision to exercise the right to be excused afforded by this section.

(c) As used in this section, the word “animal” means any organism of the kingdom animalia and includes an animal’s cadaver or the severed parts of an animal’s cadaver.

(Added 2007, No. 154 (Adj. Sess.), § 4.)

§ 913 Repealed

[Repealed]

2013, No. 77, § 3, effective June 6, 2013.

Subchapter 2 Flexible Pathways to Secondary School Completion

§ 941 Flexible Pathways Initiative

(a) There is created within the Agency a Flexible Pathways Initiative:

(1) to encourage and support the creativity of school districts as they develop and expand high-quality educational experiences that are an integral part of secondary education in the evolving 21st-century classroom;

(2) to promote opportunities for Vermont students to achieve postsecondary readiness through high-quality educational experiences that acknowledge individual goals, learning styles, and abilities; and

(3) to increase the rates of secondary school completion and postsecondary continuation and retention in Vermont.

(b) The Secretary shall develop, publish, and regularly update guidance, in the form of technical assistance, sharing of best practices and model documents, legal interpretations, and other support designed to assist school districts:

(1) To identify and support secondary students who require additional assistance to succeed in school and to identify ways in which individual students would benefit from flexible pathways to graduation.

(2) To work with every student in grade seven through grade 12 in an ongoing personalized learning planning process that:

(A) identifies the student’s emerging abilities, aptitude, and disposition;

(B) includes participation by families and other engaged adults;

(C) guides decisions regarding course offerings and other high-quality educational experiences;

(D) identifies career and postsecondary planning options using resources provided pursuant to subdivision (4) of this subsection (b); and

(E) is documented by a personalized learning plan.

(3) To create opportunities for secondary students to pursue flexible pathways to graduation that:

(A) increase aspiration and encourage postsecondary continuation of training and education;

(B) are an integral component of a student’s personalized learning plan; and

(C) include:

(i) applied or work-based learning opportunities, including career and career technical education and internships;

(ii) virtual learning and blended learning;

(iii) dual enrollment opportunities as set forth in section 944 of this title;

(iv) early college programs as set forth in subsection 4011(e) of this title; and

(v) [Repealed.]

(vi) adult education and secondary credential opportunities as set forth in section 945 of this title.

(4) To provide students, beginning not later than in grade seven, with career development and postsecondary planning resources to ensure that they are able to take full advantage of the opportunities available within the flexible pathways to graduation and to achieve their career and postsecondary education and training goals. Resources provided pursuant to this subdivision shall include information regarding the admissions process and requirements necessary to proceed with any and all military-related opportunities.

(c) Nothing in this subchapter shall be construed as discouraging or limiting the authority of any school district to develop or continue to provide educational opportunities for its students that are otherwise permitted, including the provision of Advanced Placement courses.

(d) An individual entitlement or private right of action shall not arise from creation of a personalized learning plan.

(Added 2013, No. 77, § 1; amended 2023, No. 113 (Adj. Sess.), § E.504.6, eff. July 1, 2024; 2025, No. 72, § 8, eff. July 1, 2025.)

§ 942 Definitions

As used in this title:

(1) “Accredited postsecondary institution” means a postsecondary institution that has been accredited by the New England Association of Schools and Colleges or another regional accrediting agency recognized by the U.S. Department of Education.

(2) “Approved provider” means an entity approved by the Secretary to provide educational services that may be awarded credits or used to determine proficiency necessary for a high school diploma.

(3) “Blended learning” means a formal education program in which content and instruction are delivered both in a traditional classroom setting and through virtual learning.

(4) “Career development” means the identification of student interests and aptitudes and the ability to link these to potential career paths and the training and education necessary to succeed on these paths.

(5) “Carnegie unit” means 125 hours of class or contact time with a teacher over the course of one year at the secondary level.

(6) “Local adult education and literacy provider” means an entity that is awarded federal or State grant funds to conduct adult education and literacy activities.

(7) “Dual enrollment” means enrollment by a secondary student in a course offered by an accredited postsecondary institution and for which, upon successful completion of the course, the student will receive:

(A) secondary credit toward graduation from the secondary school in which the student is enrolled; and

(B) postsecondary credit from the institution that offered the course if the course is a credit-bearing course at that institution.

(8) “Early college” means full-time enrollment, pursuant to subsection 4011(e) of this title, by a 12th grade Vermont student for one academic year in a program offered by a postsecondary institution in which the credits earned apply to secondary school graduation requirements.

(9) “Flexible pathways to graduation” means any combination of high-quality academic and experiential components leading to secondary school completion and postsecondary readiness, which may include assessments that allow the student to apply his or her knowledge and skills to tasks that are of interest to that student.

(10) “Personalized learning plan” and “PLP” mean documentation of an evolving plan developed on behalf of a student in an ongoing process involving a secondary student, a representative of the school, and, if the student is a minor, the student’s parents or legal guardian and updated at least annually by November 30; provided, however, that a home study student and the student’s parent or guardian shall be solely responsible for developing a plan. The plan shall be developmentally appropriate and shall reflect the student’s emerging abilities, aptitude, and disposition. The plan shall define the scope and rigor of academic and experiential opportunities necessary for a secondary student to complete secondary school successfully, attain postsecondary readiness, and be prepared to engage actively in civic life. While often less formalized, personalized learning and personalized instructional approaches are critical to students in kindergarten through grade 6 as well.

(11) “Postsecondary planning” means the identification of education and training programs after high school that meet a student’s academic, vocational, financial, and social needs and the identification of financial assistance available for those programs.

(12) “Postsecondary readiness” means the ability to enter the workforce or to pursue postsecondary education or training without the need for remediation.

(13) “Virtual learning” means an intentionally designed learning environment for online teaching and learning using online design principles and teachers trained in the delivery of online instruction. This instruction may take place either in a self-paced environment or a real-time environment.

(Added 2013, No. 77, § 1; amended 2017, No. 49, § 38, eff. May 23, 2017; 2025, No. 72, § 6, eff. June 27, 2025.)

§ 943 Repealed

[Repealed]

(Added 2013, No. 77, § 1; amended 2013, No. 77, §§ 4, 5; 2017, No. 49, § 39, eff. May 23, 2017.)

§ 944 Dual Enrollment Program

(a) Program creation. There is created a statewide Dual Enrollment Program to be a potential component of a student’s flexible pathway. The Program shall include college courses offered on the campus of an accredited postsecondary institution and college courses offered by an accredited postsecondary institution on the campus of a secondary school. The Program may include online college courses or components.

(b) Students.

(1) A Vermont resident who has completed grade 10 but has not received a high school diploma is eligible to participate in the Program if:

(A) the student:

(i) is enrolled in:

(I) a Vermont public school, including a Vermont career technical center;

(II) a public school in another state or an approved independent school that is designated as the public secondary school for the student’s district of residence; or

(III) an approved independent school in Vermont to which the student’s district of residence pays publicly funded tuition on behalf of the student;

(ii) is a student in the Adult Diploma Program under subsection 945(a) of this title; or

(iii) is a home study student;

(B) dual enrollment is an element included within the student’s personalized learning plan; and

(C) the secondary school and the postsecondary institution have determined that the student is sufficiently prepared to succeed in a dual enrollment course, which can be determined in part by the assessment tool or tools identified by the participating postsecondary institution.

(2) An eligible student may enroll in up to two dual enrollment courses prior to completion of secondary school for which neither the student nor the student’s parent or guardian shall be required to pay tuition. A student may enroll in courses offered while secondary school is in session and during the summer.

(c) Public postsecondary institutions. The Vermont State Colleges and the University of Vermont shall work together to provide dual enrollment opportunities throughout the State.

(1) When a dual enrollment course is offered on a secondary school campus, the public postsecondary institution shall:

(A) retain authority to determine course content; and

(B) work with the secondary school to select, monitor, support, and evaluate instructors.

(2) The public postsecondary institution shall maintain the postsecondary academic record of each participating student and provide transcripts on request.

(3) To the extent permitted under the Family Educational Rights and Privacy Act, the public postsecondary institution shall collect and send data related to student participation and success to the student’s secondary school and the Secretary and shall send data to the Vermont Student Assistance Corporation necessary for the Corporation’s federal reporting requirements.

(4) The public postsecondary institution shall accept as full payment the tuition set forth in subsection (f) of this section.

(d) Secondary schools. Each school identified in subdivision (b)(1) of this section that is located in Vermont shall:

(1) provide access for eligible students to participate in any dual enrollment courses that may be offered on the campus of the secondary school;

(2) accept postsecondary credit awarded for dual enrollment courses offered by a Vermont public postsecondary institution under this section as meeting secondary school graduation requirements;

(3) collect enrollment data as prescribed by the Secretary for longitudinal review and evaluation;

(4) identify and provide necessary support for participating students and continue to provide services for students with disabilities; and

(5) provide support for a seamless transition to postsecondary enrollment upon graduation.

(e) Program management. The Agency shall manage or may contract for the management of the Dual Enrollment Program in Vermont by:

(1) marketing the Dual Enrollment Program to Vermont students and their families;

(2) assisting secondary and postsecondary partners to develop memoranda of understanding, when requested;

(3) coordinating with secondary and postsecondary partners to understand and define student academic readiness;

(4) convening regular meetings of interested parties to explore and develop improved student support services;

(5) coordinating the use of technology to ensure access and coordination of the Program;

(6) reviewing program costs;

(7) evaluating all aspects of the Dual Enrollment Program and ensuring overall quality and accountability; and

(8) performing other necessary or related duties.

(f) Tuition and funding.

(1) Tuition shall be paid to public postsecondary institutions in Vermont as follows:

(A) For any course for which the postsecondary institution pays the instructor, tuition shall be paid to the postsecondary institution in an amount equal to the tuition rate charged by the Community College of Vermont (CCV) at the time the dual enrollment course is offered; provided however, that tuition paid to CCV under this subdivision (A) shall be in an amount equal to 90 percent of the CCV rate.

(B) For any course that is taught by an instructor who is paid as part of employment by a secondary school, tuition shall be paid to the postsecondary institution in an amount equal to 20 percent of the tuition rate charged by the Community College of Vermont at the time the dual enrollment course is offered.

(2) The State shall pay 50 percent of the tuition owed to public postsecondary institutions under subdivision (1)(A) of this subsection from the Next Generation Initiative Fund created in section 2887 of this title and 50 percent from funds appropriated from the Education Fund, notwithstanding subsection 4025(b) of this title.

(3) If it agrees to the terms of subsection (c) of this section, an accredited private postsecondary institution in Vermont approved pursuant to section 176 of this title shall receive tuition pursuant to subdivisions (1) and (2) of this subsection (f) for each eligible student it enrolls in a college-level course under this section.

(g) Private and out-of-state postsecondary institutions. Nothing in this section shall be construed to limit a school district’s authority to enter into a contract for dual enrollment courses with an accredited private or public postsecondary institution not identified in subsection (c) of this section located in or outside Vermont. The school district may negotiate terms different from those set forth in this section, including the amount of tuition to be paid. The school district may determine whether enrollment by an eligible student in a course offered under this subsection shall constitute one of the two courses authorized by subdivision (b)(2) of this section.

(h) Number of courses. Nothing in this section shall be construed to limit a school district’s authority to pay for more than the two courses per eligible student authorized by subdivision (b)(2) of this section; provided, however, that payment under subdivision (f)(2) of this section shall not be made for more than two courses per eligible student.

(i) Other postsecondary courses. Nothing in this section shall be construed to limit a school district’s authority to award credit toward graduation requirements to a student who receives prior approval from the school and successfully completes a course offered by an accredited postsecondary institution that was not paid for by the district pursuant to this section. The school district shall determine the number and nature of credits it will award to the student for successful completion of the course, including whether the course will satisfy one or more graduation requirements, and shall inform the student prior to enrollment. Credits awarded shall be based on performance and not solely on Carnegie units; provided, however, that unless the school district determines otherwise, a three-credit postsecondary course shall be presumed to equal one-half of a Carnegie unit. A school district shall not withhold approval or credit without reasonable justification. A student may request that the superintendent review the district’s determination regarding course approval or credits. The superintendent’s decision shall be final.

(j) Reports. Notwithstanding 2 V.S.A. § 20(d), the Secretary shall report to the House and Senate Committees on Education annually in January regarding the Dual Enrollment Program, including data relating to student demographics, levels of participation, marketing, and program success.

(Added 2013, No. 77, § 1; amended 2015, No. 58, § E.504.1; 2023, No. 113 (Adj. Sess.), § E.504.5, eff. July 1, 2024.)

§ 945 Adult education and secondary credential program

(a) The Secretary shall maintain an Adult Diploma Program (ADP) administered by the Agency through which any Vermont resident who is at least 16 years of age; who has not received a high school diploma; and who is not enrolled in a public or approved independent school, postsecondary institution, or home study program can receive a local high school diploma granted by one of the Program’s participating high schools.

(b) The Secretary shall maintain a General Educational Development (GED) Program, which the Secretary shall administer jointly with the GED testing service and approved local testing centers and through which a Vermont resident who is at least 16 years of age; who has not received a high school diploma; and who is not enrolled in a public or an approved independent school, a postsecondary institution, or a home study program can receive a secondary school equivalency certificate based on successful completion of the GED tests.

(c) The Secretary may provide additional programs designed to address the individual needs and circumstances of adult students, particularly students with the lowest levels of literacy skills.

(d) The diagnostic portion of the Program referenced in subsection 4011(f) of this title shall be used as a tool to evaluate the educational needs of and skills gained by individual students but shall not be used to exclude individuals from the Program or to condition payments to local education and literacy providers.

(Added 2013, No. 77, § 1; amended 2013, No. 77, §§ 6, 7; 2019, No. 131 (Adj. Sess.), § 69; 2023, No. 113 (Adj. Sess.), § E.504.2, eff. July 1, 2024.)

§ 946 Early college

(a) For each grade 12 Vermont student enrolled, the Secretary shall pay an amount equal to 87 percent of the base education amount to:

(1) the Vermont Academy of Science and Technology (VAST); and

(2) an early college program other than the VAST program that is developed and operated or overseen by the University of Vermont, by one of the Vermont State Colleges, or by an accredited private postsecondary school located in Vermont and that is approved for operation by the Secretary; provided, however, when making a payment under this subdivision (2), the Secretary shall not pay more than the tuition charged by the institution.

(b) The Secretary shall make the payment pursuant to subsection (a) of this section directly to the postsecondary institution, which shall accept the amount as full payment of the student’s tuition.

(c) A student on whose behalf the Secretary makes a payment pursuant to subsection (a) of this subsection:

(1) shall be enrolled as a full-time student in the institution receiving the payment for the academic year for which payment is made;

(2) shall not be enrolled concurrently in a secondary school operated by the student’s district of residence or to which the district pays tuition on the student’s behalf; and

(3) shall not be included in the average daily membership of any school district for the academic year for which payment is made; provided, however, that if more than five percent of the grade 12 students residing in a district enroll in an early college program, then the district may include the number of students in excess of five percent in its average daily membership; but further provided that a student in grade 12 enrolled in a college program shall be included in the percentage calculation only if, for the previous academic year, the student was enrolled in a school maintained by the district or was a student for whom the district paid tuition to a public or approved independent school.

(d) A postsecondary institution shall not accept a student into an early college program unless enrollment in an early college program was an element of the student’s personalized learning plan.

(Added 2017, No. 49, § 30, eff. May 23, 2017.)

§ 947 Early college program; report; appropriation

(a) Notwithstanding 2 V.S.A. § 20(d), any postsecondary institution receiving funds pursuant to section 946 of this title shall report annually in January to the Senate and House Committees on Education regarding the level of participation in the institution’s early college program, the success in achieving the stated goals of the program to enhance secondary students’ educational experiences and prepare them for success in college and beyond, and the specific results for participating students relating to programmatic goals.

(b) In the budget submitted annually to the General Assembly pursuant to 32 V.S.A. chapter 5, the Governor shall include the recommended appropriation for all early college programs to be funded pursuant to section 946 of this title, including the VAST program, as a distinct amount.

(Added 2017, No. 49, § 32, eff. May 23, 2017.)

§ 948 Virtual learning

(a) The Agency of Education shall maintain access to and oversight of a virtual learning provider for the purpose of offering virtual learning opportunities to Vermont students.

(b) A student may enroll in virtual learning if:

(1) the student is enrolled in a Vermont public school, including a Vermont career technical center;

(2) virtual learning is determined to be an appropriate learning pathway outlined in the student’s personalized learning plan; and

(3) the student’s learning experience occurs under the supervision of an appropriately licensed educator and aligns with State expectations and standards, as adopted by the Agency and the State Board of Education, as applicable.

(c) A school district shall count a student enrolled in virtual learning in the school district’s average daily membership, as defined in section 4001 of this title, if the student meets all of the criteria in subsection (b) of this section.

(Added 2025, No. 72, § 5, eff. June 27, 2025.)

Subchapter 3 Secondary Schools

§ 971 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 972 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§ 973 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§§ 974, 975 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§ 976 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 4 Vocational Training

§ 1021 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§§ 1022-1025 Repealed

[Repealed]

1963, No. 7, § 2.

§ 1026 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 1027 Repealed

[Repealed]

1983, No. 247 (Adj. Sess.), § 4(4).

§ 1028 Repealed

[Repealed]

1983, No. 247 (Adj. Sess.), § 4(5).

Subchapter 5 Student Driver Education and Training Program

§§ 1041-1044 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 1045 Driver training course

(a) A driver education and training course, approved by the Agency of Education and the Department of Motor Vehicles, shall be made available to students whose parent or guardian is a resident of Vermont and who have reached their 15th birthday and who are regularly enrolled in a public or independent high school approved by the State Board.

(b) After June 30, 1984, all driver education courses shall include a course of instruction approved by the State Board and the council on the effects of alcohol and drugs on driving.

(c) All driver education courses shall include instruction on motor vehicle liability insurance and the motor vehicle financial responsibility laws of the State.

(d) All driver education courses shall include instruction on the adverse environmental, health, economic, and other effects of unnecessary idling of motor vehicles and on the law governing prohibited idling of motor vehicles.

(Added 1969, No. 298 (Adj. Sess.), § 69; amended 1975, No. 1 (Sp. Sess.), § 10, eff. Oct. 22, 1975; 1983, No. 51, § 5, eff. April 22, 1983; 1985, No. 77, § 6; 1991, No. 24, § 11; 2013, No. 57, § 29.)

§ 1046 Arrangement

Subject to the approval of the Secretary, each superintendent shall arrange for the establishment of a driver education and training course for all public and approved independent schools located within his or her jurisdiction that so request.

(Added 1969, No. 298 (Adj. Sess.), § 70; amended 1991, No. 24, § 5; 2013, No. 92 (Adj. Sess.), § 106, eff. Feb. 14, 2014.)

§ 1047 State to pay costs

The State shall pay to each school providing an approved driver education and training course an amount per pupil instructed in driver education to be determined annually by the General Assembly.

(Added 1969, No. 298 (Adj. Sess.), § 71; amended 1975, No. 1 (Sp. Sess.), § 11, eff. Oct. 22, 1975; 2019, No. 131 (Adj. Sess.), § 70.)

§ 1047a Driver’s education grants

(a) The purpose of the driver’s education grant program is to provide increased availability and quality of driver’s education programs for Vermont students to prepare them for the responsibilities and requirements of safely operating a motor vehicle.

(b) The Commissioner of Motor Vehicles and the Secretary of Education shall cooperatively establish and implement a driver’s education grant program that improves the availability and quality of driver’s education programs. Eligible applicants shall include Vermont public secondary and career and technical centers and supervisory unions on behalf of a school or schools. Grant awards shall be up to $12,500.00. Eligible activities shall include one or more of the following:

(1) proposals and activities that result in increased parental involvement;

(2) increased availability of driver’s education, including reducing waiting lists;

(3) increased exposure to nighttime driving;

(4) increased exposure to diverse weather conditions;

(5) costs associated with the purchase and use of simulators;

(6) increased practice with the operation of standard transmissions;

(7) creative proposals designed to reduce alcohol abuse among enrolled students, including peer counseling;

(8) training opportunities for educators; and

(9) purchase of materials and equipment designed to enhance curricula.

(Added 1999, No. 140 (Adj. Sess.), § 10; amended 2013, No. 92 (Adj. Sess.), § 107, eff. Feb. 14, 2014.)

§ 1048 Administration

The administration of this subchapter, including the training and qualification of instructors and selection of instructional material and visual aids, shall be in the Agency.

(Added 1969, No. 298 (Adj. Sess.), § 72; amended 2013, No. 92 (Adj. Sess.), § 108, eff. Feb. 14, 2014.)

Subchapter 6 Adult Education and Literacy

§ 1049 Redesignated

[Redesignated]

2013, No. 77, § 6. [Repealed]

§ 1049a Redesignated

[Redesignated]

2013, No. 77, § 4.

Chapter 24 Periodic Released Time

§ 1051 Statement of public policy

It is the policy of the State of Vermont to cooperate with religious groups by adjusting the schedule of public schools to provide periodic released time for religious instruction, provided that such adjustments do not interfere with the conduct of secular educational programs in the schools.

(Added 1969, No. 260 (Adj. Sess.), eff. Sept. 1, 1970.)

§ 1052 Definitions and construction

(a) As used in this chapter, unless the context otherwise clearly requires:

(1) “Periodic released time” means time, occurring at least once weekly, during which public school students are released from school to attend religious education courses sponsored by and given under the authority of a religious group.

(2) “Religious group” means any association of persons for religious purposes, including any organization of religious denominations, communions, or traditions.

(3) “Periodic released time religious education course” means a course offered by a religious group during periodic released time.

(b) This chapter shall be construed liberally to carry out the policies stated in this chapter.

(Added 1969, No. 260 (Adj. Sess.), eff. Sept. 1, 1970; amended 2013, No. 92 (Adj. Sess.), § 111, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 71.)

§ 1053 Duty to cooperate in periodic released time program

If requested by a religious group, the board of directors or trustees of a school district shall make available periodic released time, provided that the granting of released time will not interfere with the conduct of secular education programs within the school system. On request of a religious group, periodic released time religious education courses shall be included in public school catalogues and listings of course offerings, provided that all periodic released time religious education course offerings shall be identified as given under the provisions of this chapter.

(Added 1969, No. 260 (Adj. Sess.), eff. Sept. 1, 1970.)

§ 1054 Prohibitions

(a) No person shall conduct a periodic released time religious education course on public school property.

(b) No periodic released time program shall interfere with the completion by any student of requirements for graduation as established from time to time by the Agency.

(c) No administrator or teacher in a public school cooperating in a periodic released time program shall direct a student to take or not to take a periodic released time course.

(Added 1969, No. 260 (Adj. Sess.), eff. Sept. 1, 1970; amended 2013, No. 92 (Adj. Sess.), § 112, eff. Feb. 14, 2014.)

§ 1055 Conditions

(a) No student may take a periodic released time religious education course without first having obtained:

(1) written permission from the student’s parent or guardian containing a release of the school from all legal responsibility for the student while engaged in the periodic released time program; and

(2) written permission from the sponsoring religious group to attend such course.

(b) All costs of periodic released time religious education courses shall be borne by the sponsoring religious group.

(Added 1969, No. 260 (Adj. Sess.), eff. Sept. 1, 1970; amended 2021, No. 20, § 59.)

Chapter 25 Attendance and Discipline

Subchapter 1 General Provisions

§ 1071 School year and school day

(a) Minimum number of days. Except as provided in this section, each public school shall be maintained and operated for:

(1) At least 175 student attendance days in each school year. For purposes of this section, a majority of students enrolled in a school must be recorded on the school roll as in attendance on any day counted as a student attendance day.

(2) At least five teacher in-service education days, during which time activities shall be conducted without students present in order to increase the competency of the staff, improve the curriculum of the school, enable teachers to attend State educational meetings, or disseminate student progress information to parents or the community.

(b) Hours of operation. Within the minimum set by the State Board, the school board shall fix the number of hours that shall constitute a school day, subject to change upon the order of the State Board.

(c) Unanticipated closings. When a public school is closed for cause beyond the control of the school board, it may petition the State Board for a waiver of the requirements of this section. The petition shall be filed with the State Board within 10 days of each occurrence and not later than June 15 of the school year involved; and the State Board shall act on the petition at its next meeting. If the petition is approved and a waiver granted, the school district shall be deemed to have satisfied the requirements of this section. If the State Board fails to act at that meeting, the petition shall be deemed to have been approved and the waiver granted.

(d) [Repealed.]

(e) Regional calendar. Before April 1 of each year, the superintendents of schools and the headmasters of public schools not managed by school boards in an area shall meet, and by majority vote, establish a uniform calendar within that area for the following school year. The calendar shall include student attendance days, periods of vacation, holidays, and teacher in-service education days and shall comply with subsection (a) of this section. Unless permitted by the Secretary, no area served by a regional career technical center shall be divided into two or more calendar regions.

(f) Additional days. Nothing in this section prohibits a school from scheduling additional days for student attendance or teacher in-service education. However, those days shall not conflict with any applicable school calendar.

(g) Upon application of one or more school districts, after approval by the voters of each such district, the State Board may grant a waiver of the requirements of subsection (a) of this section if it is satisfied that equivalent educational programming will be maintained or improved. The waiver may be granted for any purpose, including the conservation of energy.

(Amended 1969, No. 298 (Adj. Sess.),§§ 7, 79; 1971, No. 17; 1979, No. 155 (Adj. Sess.); 1981, No. 47, § 1; 1983, No. 163 (Adj. Sess.); 1991, No. 204 (Adj. Sess.), § 7; 1995, No. 130 (Adj. Sess.), § 1; 1999, No. 49, § 22, eff. June 2, 1999; 2013, No. 92 (Adj. Sess.), § 113, eff. Feb. 14, 2014.)

§ 1072 Legal holidays

All conditions of employment relating to legal holidays, including decisions such as the closing or opening of schools and compensation for work performed on a holiday, shall be proper matters for collective bargaining pursuant to chapter 57 of this title.

(Amended 1975, No. 48, § 9, eff. April 15, 1975; 1985, No. 251 (Adj. Sess.), § 2; 2013, No. 92 (Adj. Sess.), § 114, eff. Feb. 14, 2014.)

§ 1073 “Legal pupil” defined; access to school

(a) Definition. “Legal pupil” means an individual who has attained the age of five years on or before January 1 next following the beginning of the school year. However, a school district may require that students admitted to kindergarten have attained the age of five on or before any date between August 31 and January 1.

(b) Access to school.

(1) Right to a public education. No legal pupil attending school at public expense, including a married, pregnant, or parenting student, shall be deprived of or denied the opportunity to participate in or complete a public school education.

(2) Right to enroll in a public or independent school. Notwithstanding the provisions of sections 822 and 1075 of this title, a pregnant or parenting student may enroll in any approved public school in Vermont or an adjacent state, any approved independent school in Vermont, or any other educational program approved by the State Board in which any other legal pupil in Vermont may enroll.

(3) Teen parent education program.

(A) Residential teen parent education programs. The Secretary shall pay the educational costs for a pregnant or parenting student attending a State Board-approved teen parent education program in a 24-hour residential facility for up to eight months after the birth of the child. The Secretary may approve extension of payment of educational costs based on a plan for reintegration of the student into the community or for exceptional circumstances as determined by the Secretary. The district of residence of a student in a 24-hour residential facility shall remain responsible for coordination of the student’s educational program and for planning and facilitating her subsequent educational program.

(B) Nonresidential teen parent education programs.

(i) The pregnant or parenting student’s district of residence or the approved independent or public school to which that district pays tuition for its students (the enrolling school) shall be responsible for planning, coordinating, and assessing the enrolled student’s education plan while attending a teen parent education program and for planning, assessing, and facilitating the student’s subsequent education plan, including the student’s transition back to the public or approved independent school. As determined by the district of residence or the enrolling school, as appropriate, the student’s educational plan while attending a teen parent education program shall include learning experiences that are the substantial equivalent of the learning experiences required by the district of residence or the enrolling school to obtain a high school diploma.

(ii) A pregnant or parenting student may attend a nonresidential teen parent education program for a length of time to be determined by agreement of the student’s district of residence, the enrolling school, the teen parent education program, and the student.

(iii) In the event of a dispute regarding any aspect of this subdivision (B), the district of residence, the enrolling school, the teen parent education program, or the student, or any combination of these, may request a determination from the Secretary whose decision shall be final; any determination by the Secretary regarding “substantial equivalency” pursuant to subdivision (i) of this subdivision (b)(3)(B) shall be based on the Secretary’s analysis of the course syllabus or the course description provided by the district of residence or enrolling school.

(c) Prekindergarten and essential early education. An individual who is not a legal pupil may be enrolled in a public school in a prekindergarten program offered by or through a public school pursuant to rules adopted under section 829 of this title or in a program of essential early education offered pursuant to section 2956 of this title.

(d) If one or both of a child’s parents or guardians are being relocated to the State under military orders, a school district shall allow registration of the student by mail, telephone, or electronically and shall not require the parent or legal guardian of the student or the student themselves to physically appear at a location within the district to register the student. Proof of required residency shall not be required at the time of the remote registration but shall be required within 10 days of the student’s attendance in the school district.

(Amended 1971, No. 243 (Adj. Sess.), § 1; 1979, No. 124 (Adj. Sess.); 1983, No. 247 (Adj. Sess.), § 4(6); 1985, No. 71, § 6; 1991, No. 21, § 1; 1995, No. 157 (Adj. Sess.), § 4; 1997, No. 147 (Adj. Sess.), § 153a, eff. April 29, 1998; 2007, No. 62, § 5; 2009, No. 44, § 34, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 115, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 72; 2021, No. 140 (Adj. Sess.), § 4, eff. May 27, 2022.)

§ 1074 Age of student; “between” defined

The word “between,” as used in this title in respect to a specified age of a student, shall mean the period of time commencing on the birthday of the child when he or she becomes the age first specified and ending on the day next preceding the birthday of the child when he or she becomes the age last specified.

(Amended 2013, No. 92 (Adj. Sess.), § 116, eff. Feb. 14, 2014.)

§ 1075 Legal residence defined; responsibility and payment of education of student

(a) For the purpose of this title, except as otherwise set forth, the legal residence or residence of a student shall be as follows:

(1) In the case of a minor, legal residence is where his or her parents reside, except that:

(A) if the parents live apart, legal residence is where either parent resides, but if a parent with sole custody lives outside the State of Vermont, the student does not have a legal residence in Vermont;

(B) if the minor is in the custody of a legal guardian appointed by a Vermont court or a court of competent jurisdiction in another state, territory, or country, legal residence is where the guardian resides.

(2) In the case of a student who has reached the age of majority, legal residence is where the student resides.

(3) For the purposes of this title, “resident” of the State and of a school district means a natural person who is domiciled in the school district and who, if temporarily absent, demonstrates an intent to maintain a principal dwelling place in the school district indefinitely and to return there, coupled with an act or acts consistent with that intent. The term “temporarily absent” includes those special cases listed in 17 V.S.A. § 2122(a). The term “residence” is synonymous with the term “domicile.” A married person may have a domicile independent of the domicile of his or her spouse. If a person removes to another town with the intention of remaining there indefinitely, that person shall be considered to have lost residence in the town in which the person originally resided even though the person intends to return at some future time. A person may have only one residence at a given time.

(b) The Secretary shall determine the legal residence of all State-placed students pursuant to the provisions of this section. In all other cases, the student’s legal residence shall be determined by the school board of the district in which the student is seeking enrollment or, if the student is seeking payment of tuition, the school board from which the student is seeking tuition payment. If a student is denied enrollment at any stage, the student and his or her parent or guardian shall be notified in writing, within 24 hours, of the provisions of this section. If the student is not in attendance as a result of a preliminary decision by school officials and a decision from the school board will not be available by the end of the second school day after the request for enrollment is made, the Secretary may issue a temporary order requiring enrollment. Any interested person or taxpayer who is dissatisfied with the decision of the school board as to the student’s legal residence may appeal to the Secretary, who shall determine the student’s legal residence, and the decision of the Secretary shall be final. Pending appeal under this subsection, the Secretary shall issue a temporary order requiring enrollment.

(c) State-placed students.

(1) A State-placed student in the legal custody of the Commissioner for Children and Families, other than one placed in a 24-hour residential facility and except as otherwise provided in this subsection, shall be educated by the student’s school of origin, unless the student’s education team determines that it is not in the student’s best interests to attend the school of origin. The student’s education team shall include, as applicable, the student, the student’s parents and foster parents, the student’s guardian ad litem and educational surrogate parent, representatives of both the school of origin and potential new school, and a representative of the Family Services Division of the Department for Children and Families. In the case of a dispute about whether it is in the student’s best interests to attend the school of origin, the Commissioner for Children and Families shall make the final decision. As used in this section, “school of origin” means the school in which the child was enrolled at the time of placement into custody of the Commissioner for Children and Families, or in the case of a student already in the custody of the Commissioner for Children and Families, the school the student most recently attended.

(2) If a student is a State-placed student pursuant to subdivision 11(a)(28)(D)(i)(I) of this title, then the Department for Children and Families shall be responsible for the student’s transportation to and from school, unless the receiving district chooses to provide transportation.

(3) A State-placed student not in the legal custody of the Commissioner for Children and Families, other than one placed in a 24-hour residential facility and except as otherwise provided in this subsection, shall be educated by the school district in which the student is living, unless an alternative plan or facility for the education of the student is agreed upon by the Secretary. In the case of dispute as to where a State-placed student is living, the Secretary shall conduct a hearing to determine which school district is responsible for educating the student. The Secretary’s decision shall be final.

(4) A student who is in temporary legal custody pursuant to 33 V.S.A. § 5308(b)(3) or (4) and is a State-placed student pursuant to subdivision 11(a)(28)(D)(i)(II) of this title shall be enrolled, at the temporary legal custodian’s discretion, in the district in which the student’s parents reside, the district in which either parent resides if the parents live in different districts, the district in which the student’s legal guardian resides, or the district in which the temporary legal custodian resides. If the student enrolls in the district in which the temporary legal custodian resides, the district shall provide transportation in the same manner and to the same extent it is provided to other students in the district. In all other cases, the temporary legal custodian is responsible for the student’s transportation to and from school, unless the receiving district chooses to provide transportation.

(5) If a student who had been a State-placed student pursuant to subdivision 11(a)(28) of this title is returned to live in the district in which one or more of the student’s parents or legal guardians reside, then, at the request of the student’s parent or legal guardian, the Secretary may order the student to continue his or her enrollment for the remainder of the academic year in the district in which the student resided prior to returning to the parent’s or guardian’s district, and the student will continue to be funded as a State-placed student. Unless the receiving district chooses to provide transportation:

(A) If the student remains in the legal custody of the Commissioner for Children and Families, then the Department for Children and Families shall assume responsibility for the student’s transportation to and from school.

(B) In all other instances under this subdivision (4), the parent or legal guardian is responsible for the student’s transportation.

(d) [Repealed.]

(e) For the purposes of this title, the legal residence or residence of a child of homeless parents is the child’s school of origin, as defined in subdivision (c)(1) of this section, unless the parents and another school district agree that the child’s attendance in school in that school district will be in the best interests of the child. A “child of homeless parents” means a child whose parents:

(1) lack a fixed, regular, and adequate residence; or

(2) have a primary nighttime residence in a supervised publicly or privately operated shelter for temporary accommodations such as public assistance hotels, emergency shelters, battered women’s shelters, and transitional housing facilities, or a public or private place not designated for, or ordinarily used as, a regular sleeping accommodation for human beings.

(f) For the purposes of this title, the legal residence of an alien, immigrant, or refugee child shall be determined in the same manner as in subsection (e) of this section, unless the child’s parents have established a residence in the State.

(g) [Repealed.]

(h) For the purposes of this title, the legal residence or residence of an independent student is where the independent student resides. “Independent student” as used in this subsection means a child between the ages of 14 and 18 years who by the acts and expressions of the child and his or her parents or legal guardian has demonstrated that he or she is living separate and apart from his or her parents or legal guardian, is independent of the authority of his or her parents or legal guardian, and is not economically dependent upon his or her parents or legal guardian. For the purposes of this subsection, the term “independent student” shall also include “emancipated minor” as that term is defined in 12 V.S.A. § 7151(a).

(i) The Commissioner for Children and Families shall continue to provide social services and financial support in accordance with section 2950 of this title on behalf of individuals under his or her care and custody while in a residential placement, until they reach their 19th birthday.

(j) A claim or statement of fact bearing on residency shall be subject to 13 V.S.A. § 3016.

(k) [Repealed.]

(Amended 1967, No. 147, § 25; 1973, No. 152 (Adj. Sess.), § 8, eff. April 14, 1974; 1975, No. 48, § 10, eff. April 15, 1975; 1977, No. 194 (Adj. Sess.), § 1; 1979, No. 6, § 1, eff. March 2, 1979; 1981, No. 153 (Adj. Sess.), § 2; 1985, No. 51; 1989, No. 187 (Adj. Sess.), § 5; 1989, No. 233 (Adj. Sess.), § 1; 1991, No. 21, §§ 2, 3; 1995, No. 145 (Adj. Sess.), § 3; 1995, No. 157 (Adj. Sess.), §§ 5, 30(a)(2), 30(c), and § 29 (eff. July 1, 1997); 1995, No. 174 (Adj. Sess.), § 3; 2003, No. 36, § 8; 2009, No. 44, § 15, eff. May 21, 2009; 2011, No. 58, § 10, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 117, eff. Feb. 14, 2014; 2017, No. 49, § 28; 2019, No. 131 (Adj. Sess.), § 73.)

§ 1076 Penalties

(a) A superintendent or truant officer who fails to perform the duties imposed on him or her by this chapter shall be fined not more than $100.00.

(b) A teacher who violates a provision of this chapter shall be fined not more than $25.00 nor less than $5.00.

(Amended 1967, No. 147, § 26, eff. Oct. 1, 1968; 2013, No. 92 (Adj. Sess.), § 118, eff. Feb. 14, 2014.)

§§ 1077-1092 [Reserved for future use.]

Subchapter 2 Assignment of Pupils to Schools; Tuition

§§ 1091, 1092 Repealed

[Repealed]

1983, No. 11.

§ 1093 Nonresident students

A school board may receive into the schools under its charge nonresident students under such terms and restrictions as it deems best, and money received for the instruction of the students shall be paid into the school fund of the district.

(Amended 2013, No. 92 (Adj. Sess.), § 120, eff. Feb. 14, 2014.)

§§ 1094, 1095 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 3 Compulsory Attendance

§ 1121 Attendance by children of school age required

A person having the control of a child between the ages of six and 16 years shall cause the child to attend a public school, an approved or recognized independent school, an approved education program, or a home study program for the full number of days for which that school is held, unless the child:

(1) is mentally or physically unable so to attend; or

(2) has completed the tenth grade; or

(3) is excused by the superintendent or a majority of the school directors as provided in this chapter; or

(4) is enrolled in and attending a postsecondary school, as defined in subdivision 176(b)(1) of this title, which is approved or accredited in Vermont or another state.

(Amended 1965, No. 46, § 1, eff. May 5, 1965; 1967, No. 55; 1981, No. 151 (Adj. Sess.), § 2; 1987, No. 97, § 2, eff. June 23, 1987; 1989, No. 44, § 5, eff. June 1, 1990; 1999, No. 113 (Adj. Sess.), § 3; 2009, No. 44, § 35, eff. May 21, 2009.)

§ 1122 Students over 16

A person having the control of a child over 16 years of age who allows the child to become enrolled in a public school shall cause the child to attend the school continually for the full number of the school days of the term in which he or she is enrolled, unless the child is mentally or physically unable to continue or is excused in writing by the superintendent or a majority of the school directors. In case of such enrollment, the person and the teacher, child, superintendent, and school directors shall be under the laws and subject to the penalties relating to the attendance of children between the ages of six and 16 years.

(Amended 1965, No. 46, § 2, eff. May 5, 1965; 2011, No. 58, § 2, eff. May 31, 2011.)

§ 1123 Attendance may be excused

(a) The superintendent of a public school may excuse, in writing, any student from attending the school for a definite time, but for not more than ten consecutive school days and only for emergencies or for absence from town.

(b) The superintendent of an elementary school held for more than 175 school days in a school year may excuse, in writing, a student of the school from attending more than 175 days.

(c) [Repealed.]

(Amended 2013, No. 56, § 9, eff. May 30, 2013.)

§ 1124 Repealed

[Repealed]

2013, No. 56, § 15(1), eff. May 30, 2013.

§ 1125 Truant officers

(a) A school board shall annually appoint one or more truant officers and record their appointments with the clerk of the school district on or before July 3. State police, sheriffs, deputy sheriffs, constables, and police officers shall be truant officers ex officio.

(b) Truant officers shall receive remuneration for time actually spent in performance of their duties and shall be allowed their necessary expenses incurred in connection therewith.

(Added 1969, No. 298 (Adj. Sess.), § 73.)

§ 1125a Repealed

[Repealed]

2013, No. 56, § 15(2), eff. May 30, 2013.

§ 1126 Failure to attend; notice

When a student between the ages of six and 16 years, who is not excused or exempted from school attendance, fails to enter school at the beginning of the academic year or, being enrolled, fails to attend the school, and when a student who is at least 16 years of age becomes enrolled in a public school and fails to attend, the teacher or principal shall notify the truant officer and either the superintendent or the school board, unless the teacher or principal is satisfied that the student is absent on account of illness.

(Amended 1965, No. 46, § 3, eff. May 5, 1965; 1975, No. 48, § 11, eff. April 15, 1975; 1999, No. 113 (Adj. Sess.), § 4; 2013, No. 92 (Adj. Sess.), § 121, eff. Feb. 14, 2014.)

§ 1127 Notice and complaint by truant officer; penalty

(a) The truant officer, upon receiving the notice provided in section 1126 of this title, shall inquire into the cause of the nonattendance of the child. If he or she finds that the child is absent without cause, the truant officer shall give written notice to the person having the control of the child that the child is absent from school without cause and shall also notify that person to cause the child to attend school regularly thereafter.

(b) When, after receiving notice, a person fails, without legal excuse, to cause a child to attend school as required by this chapter, he or she shall be fined not more than $1,000.00 pursuant to subsection (c) of this section.

(c) The truant officer shall enter a complaint to the State’s Attorney of the county and shall provide a statement of the evidence upon which the complaint is based. The State’s Attorney shall prosecute the person. In the prosecution, the complaint, information, or indictment shall be deemed sufficient if it states that the respondent (naming the respondent) having the control of a child of school age (naming the child) neglects to send that child to a public school or an approved or recognized independent school or a home study program as required by law.

(Amended 1981, No. 151 (Adj. Sess.), § 3; 1987, No. 97, § 6, eff. June 23, 1987; 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 122, eff. Feb. 14, 2014; 2017, No. 93 (Adj. Sess.), § 15.)

§ 1128 Legal pupil taken to school; nonresident child living in district

(a) A superintendent may and the truant officer shall stop a child between the ages of six and 16 years or a child 16 years of age or over and enrolled in public school, wherever found during school hours, and shall, unless such child is excused or exempted from school attendance, take the child to the school that she or he should attend.

(b) A child of legal school age who is not exempt from school attendance and who has not finished the elementary school course and is living in a district other than the place of legal residence shall, with the school board’s approval, be admitted immediately to a school in the district where he or she is found. If the child is not admitted to school, then immediate action shall be taken by the truant officer to cause the return of the child to the district of his or her residence.

(Amended 1965, No. 46, § 4, eff. May 5, 1965; 1999, No. 113 (Adj. Sess.), § 5.)

§ 1129 Jurisdiction of nonresidents

The superintendent of a school in which a nonresident pupil is enrolled and a truant officer having jurisdiction of the pupils in such school shall have the same authority and jurisdiction over such nonresident pupil and the person having the control of such pupil as they have over resident pupils and the persons having control of such pupils.

§ 1130 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 4 Effective Discipline Measures

§ 1161 Repealed

[Repealed]

1983, No. 145 (Adj. Sess.), § 3.

§ 1161a Discipline

(a) Each public and each approved independent school shall adopt and implement a comprehensive plan for responding to student misbehavior. To the extent appropriate, the plan shall promote the positive development of youths. The plan shall include:

(1) The school’s approach to classroom management and response to disruptive behavior, including the use of alternative educational settings.

(2) The manner in which the school will provide information and training to students in methods of conflict resolution, peer mediation, and anger management.

(3) Procedures for informing parents of the school’s discipline policies, for notifying parents of student misconduct, and for working with parents to improve student behavior.

(4) The school’s response to significant disruptions, such as threats or use of bombs or weapons.

(5) A description of how the school will ensure that all staff and contractors who routinely have unsupervised contact with students periodically receive training on the maintenance of a safe, orderly, civil, and positive learning environment. The training shall be appropriate to the role of the staff member being trained and shall teach classroom and behavior management, enforcement of the school’s discipline policies, and positive youth development models.

(6) A description of behaviors on and off school grounds that constitute misconduct, including harassment, bullying, and hazing, particularly those behaviors that may be grounds for expulsion. The plan shall include a description of misconduct as listed in subdivisions 11(a)(26)(A)-(C) and (32) of this title that, although serious, does not rise to the level of harassment or bullying as those terms are defined in these subdivisions.

(7) Standard due process procedures for suspension and expulsion of a student.

(b) For the purpose of this chapter, “corporal punishment” means the intentional infliction of physical pain upon the body of a pupil as a disciplinary measure.

(c) No person employed by or agent of a public or approved independent school shall inflict or cause to be inflicted corporal punishment upon a student attending the school or the institution. However, this section does not prohibit a person from using reasonable and necessary force:

(1) to quell a disturbance;

(2) to obtain possession of weapons or other dangerous objects upon the person of or within the control of a student;

(3) for the purpose of self defense; or

(4) for the protection of persons or property.

(Added 1983, No. 145 (Adj. Sess.), § 1; amended 1995, No. 35, § 3; 1999, No. 113 (Adj. Sess.), § 6; 2003, No. 91 (Adj. Sess.), § 5; 2003, No. 117 (Adj. Sess.), § 2; 2013, No. 92 (Adj. Sess.), § 123, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 74.)

§ 1162 Suspension or expulsion of students

(a) A superintendent or principal may, pursuant to policies adopted by the school board that are consistent with State Board rules, suspend a student for up to 10 school days or, with the approval of the board of the school district, expel a student for up to the remainder of the school year or up to 90 school days, whichever is longer, for misconduct:

(1) on school property, on a school bus, or at a school-sponsored activity when the misconduct makes the continued presence of the student harmful to the welfare of the school;

(2) not on school property, on a school bus, or at a school-sponsored activity where direct harm to the welfare of the school can be demonstrated; or

(3) not on school property, on a school bus, or at a school-sponsored activity where the misconduct can be shown to pose a clear and substantial interference with another student’s equal access to educational programs.

(b) Nothing contained in this section shall prevent a superintendent or principal, subject to subsequent due process procedures, from removing immediately from a school a student who poses a continuing danger to persons or property or an ongoing threat of disrupting the academic process of the school, or from expelling a student who brings a weapon to school pursuant to section 1166 of this title.

(c) Principals, superintendents, and school boards are authorized and encouraged to provide alternative education services or programs to students during any period of suspension or expulsion authorized under this section.

(d) Notwithstanding anything to the contrary in this chapter, a student enrolled in a public school, approved independent school, or prequalified private prekindergarten program who is under eight years of age shall not be suspended or expelled from the school; provided, however, that the school may suspend or expel the student if the student poses an imminent threat of harm or danger to others in the school.

(Amended 1977, No. 33, § 3; 1977, No. 130 (Adj. Sess.); 1995, No. 35, § 4; 1999, No. 113 (Adj. Sess.), § 7; 2001, No. 8, § 19; 2011, No. 58, § 37, eff. May 31, 2011; 2021, No. 35, § 6, eff. May 18, 2021; 2021, No. 166 (Adj. Sess.), § 3, eff. June 1, 2022.)

§ 1163 Transfer of suspension or expulsion to other schools

(a) If a student transfers from one Vermont public or independent school to another, then upon application by the student and after a review of whether the school can provide the student with appropriate services, the new school may choose to continue a suspension or expulsion imposed by the original school.

(b) During a period of suspension or expulsion imposed under section 1162 of this title, a student, or parent or guardian, shall not be subject to the provisions of subchapter 3 of this chapter regarding compulsory attendance at school, unless the conditions of the suspension or expulsion include participation in a program in the school or an alternative program outside the school. Further, nothing in this section shall prohibit a suspended or expelled student from applying to a different Vermont public or independent school during the period of suspension or expulsion and attending if accepted.

(c) A school district that provides for the education of a suspended or expelled student by paying tuition to a public or approved independent school may, at the discretion of the school board, provide for the education of the student during the period of suspension or expulsion by paying tuition to another public or approved independent school.

(Added 1999, No. 113 (Adj. Sess.), § 8; amended 2013, No. 92 (Adj. Sess.), § 124, eff. Feb. 14, 2014.)

§ 1164 Repealed

[Repealed]

1977, No. 33, § 6.

§ 1165 Alcohol and drug abuse

(a) The State Board, in consultation with local school boards, the alcohol and drug division, the law enforcement authorities, and the juvenile court system shall formulate a general policy for the education, discipline, and referral for rehabilitation of students who are involved with alcohol or drug abuse on school property or at school functions.

(b) The State Board shall adopt rules for all school districts that include standards consistent with due process of law for discipline, suspension, or dismissal of students and recommended procedures for education and for referral for treatment and rehabilitation.

(c) Each school district shall adopt its own policy consistent with the State Board’s rules setting forth recommended procedures for education; referral for treatment, counseling, and rehabilitation; and standards consistent with due process of law for discipline, suspension, or dismissal of students in accordance with section 1162 of this title. Nothing in this section is intended to mandate local school districts to employ counselors for treatment or rehabilitation.

(d) [Repealed.]

(e) No municipality, school district, or officer or employee of the school district shall be liable for civil damages in connection with the implementation of the purposes of this section so long as they have acted in good faith and not knowingly in violation of the constitutional or civil rights of any person.

(f), (g) [Repealed.]

(Added 1979, No. 62, § 1, eff. April 27, 1979; amended 1983, No. 51, § 4, eff. April 22, 1983; 2003, No. 107 (Adj. Sess.), § 21; 2007, No. 154 (Adj. Sess.), § 6; 2013, No. 92 (Adj. Sess.), § 125, eff. Feb. 14, 2014.)

§ 1166 Possession of a firearm at school

(a) In this section, the terms “to school” and “firearm” shall have the same meaning that the terms have in 18 U.S.C. § 921. The school board may expand the definitions, however, provided they remain consistent with federal law.

(b) Each school board shall adopt and implement policies regarding a student who brings a firearm to or possesses a firearm at school, which at a minimum shall include:

(1) A provision that any student who brings a firearm to or possesses a firearm at school shall be referred to a law enforcement agency. In addition to any other action the law enforcement agency may take, it may report the incident to the Department for Children and Families.

(2) A provision that the superintendent or principal, with the approval of the school board following opportunity for a hearing, shall expel from the school for not less than one calendar year any student who brings a firearm to or possesses a firearm at school; provided, however, the school board may modify the expulsion on a case-by-case basis. Modifications may be granted in circumstances such as:

(A) The student is unaware that he or she has brought a firearm to or possessed a firearm at school.

(B) The student did not intend to use the firearm to threaten or endanger others.

(C) The student has a disability and the misconduct is related to the student’s disability.

(D) The student does not present an ongoing threat to others and a lengthy expulsion would not serve the best interests of the student.

(c) Annually at a time and on a form determined by the Secretary, each superintendent shall provide the Secretary with a description of the circumstances surrounding expulsions imposed under this section, the number of students expelled, and the type of firearm involved.

(Added 1995, No. 35, § 5; amended 2003, No. 36, § 9; 2011, No. 58, § 11, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 126, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 77.)

§ 1167 School resource officer; memorandum of understanding

(a) Neither the State Board nor the Agency shall regulate the use of restraint and seclusion on school property by a school resource officer certified pursuant to 20 V.S.A. § 2358.

(b) School boards and law enforcement agencies are encouraged to enter into memoranda of understanding relating to:

(1) the possession and use of weapons and devices by a school resource officer on school property; and

(2) the nature and scope of assistance that a school resource officer will provide to the school system.

(Added 2011, No. 101 (Adj. Sess.), § 1, eff. May 4, 2012; amended 2013, No. 92 (Adj. Sess.), § 127, eff. Feb. 14, 2014.)

Chapter 27 Transportation and Board

Subchapter 1 General Provisions

§ 1221 Repealed

[Repealed]

2011, No. 58, § 3.

§ 1222 Students who may be furnished transportation

(a) Each legal pupil, as defined in section 1073 of this title, who is entitled or required to attend an elementary school or a secondary school may be furnished with total or partial transportation to school, or board, as in the opinion of the school board is reasonable and necessary to enable the student to attend school. Each school board shall adopt a transportation policy for students required to attend school in accordance with the procedure specified in subdivision 563(1) of this title. The policy shall consider the transportation needs of students, including such factors as the age and health of a student, distance to be travelled, and condition and type of highway. The policy and any subsequent amendments shall be filed in the principal’s office in each school in the district. Compensation may be paid to parents or guardians and shall be payable only in return for actual transportation or board as shall be stipulated by the school board.

(b) The provisions of 23 V.S.A. § 376 relative to the use of motor vehicles for a municipal purpose shall apply to this section.

(c) Expenditures by a school district for transportation or board under this chapter shall be included in computing current school expenses under chapter 123 of this title.

(Amended 1965, No. 102, § 1, eff. June 17, 1965; 1969, No. 298 (Adj. Sess.), § 8; 1971, No. 12; 2001, No. 61, § 75, eff. June 16, 2001; 2013, No. 92 (Adj. Sess.), § 128, eff. Feb. 14, 2014.)

§ 1223 Repealed

[Repealed]

1965, No. 102, § 2, eff. June 17, 1965.

§ 1224 Reports

The superintendent shall include in his or her annual report to the school board of each district data regarding the students in the district who have been transported or boarded under the provisions of this chapter and the associated expenses. Annually, at a time fixed by the State Board, the superintendent shall report to the Board regarding the students transported or boarded under the provisions of this chapter and the associated expenses.

(Amended 2013, No. 92 (Adj. Sess.), § 128, eff. Feb. 14, 2014.)

Subchapter 2 School Food Programs

§ 1261 Repealed

[Repealed]

1969, No. 21, § 4.

§ 1261a Definitions

As used in this subchapter:

(1) “Food programs” means provision of food to persons under programs meeting standards for assistance under the National School Lunch Act, 42 U.S.C. § 1751 et seq. and the Child Nutrition Act, 42 U.S.C. § 1771 et seq., each as amended.

(2) “School board” means the governing body of a school district responsible for the administration of a public school.

(3) “Independent school board” means a governing body responsible for the administration of a nonprofit independent school exempt from U.S. income taxes.

(4) “Approved independent school” means an independent school physically located in Vermont and approved by the State Board of Education under section 166 of this title.

(5) “Universal meals supplement” means the reimbursement amount paid by the State for the cost of a paid breakfast or lunch under the federal school breakfast and federal school lunch programs.

(A) For breakfast, the universal meals supplement is a sum equal to the federal reimbursement rate for a free school breakfast less the federal reimbursement rate for a paid school breakfast, using rates identified annually by the Agency of Education from payment levels established annually by the U.S. Department of Agriculture.

(B) For lunch, the universal meals supplement is a sum equal to the federal reimbursement rate for a free school lunch less the federal reimbursement rate for a paid school lunch, using rates identified annually by the Agency of Education from payment levels established annually by the U.S. Department of Agriculture.

(Added 1969, No. 21, § 1; amended 1991, No. 24, § 11; 2011, No. 58, § 22, eff. May 31, 2011; 2019, No. 131 (Adj. Sess.), § 75; 2021, No. 20, § 60; 2023, No. 64, § 2, eff. July 1, 2023.)

§ 1262 Repealed

[Repealed]

1969, No. 21, § 4.

§ 1262a Award of grants

(a)(1) The Agency may, from funds appropriated for this subsection to the Agency, award grants to:

(A) supervisory unions for the use of member school boards that establish and operate food programs;

(B) independent school boards that establish and operate food programs; and

(C) approved education programs, as defined in subdivision 11(a)(34) of this title and operating under private nonprofit ownership as defined in the National School Lunch Act, that establish and operate food programs for students engaged in a teen parent education program or students enrolled in a Vermont public school.

(2) The amount of any grant awarded under this subsection shall not be more than the amount necessary, in addition to any reimbursement from federal funds, to pay the actual cost of the meal.

(b) The Agency may, from funds available to the Agency for this subsection, award grants to supervisory unions consisting of one or more school districts that need to initiate or expand food programs in order to meet the requirements of section 1264 of this title and that seek assistance in meeting the cost of initiation or expansion. The amount of the grants shall be limited to 75 percent of the cost deemed necessary by the Secretary to construct, renovate, or acquire additional facilities and equipment to provide lunches to all students, and shall be reduced by the amount of funds available from federal or other sources, including those funds available under section 3448 of this title. The Agency shall direct supervisory unions seeking grants under this section to share facilities and equipment within the supervisory union and with other supervisory unions for the provision of lunches wherever more efficient and effective operation of food programs can be expected to result.

(c) On a quarterly basis, from State funds appropriated to the Agency for this subsection, the Agency shall award to each supervisory union, independent school board, and approved education program as described in subsection (a) of this section a sum equal to the amount that would have been the student share of the cost of all breakfasts and lunches actually provided in the district during the previous quarter to students eligible for a reduced-price breakfast under the federal school breakfast program and students eligible for a reduced-price lunch under the federal school lunch program.

(d) The Agency shall, from funds appropriated for this subsection to the Agency, award grants to supervisory unions and supervisory districts in accordance with section 1264a of this title (locally produced foods). If the amount appropriated for this purpose is insufficient to fully fund the grants under that section, then the grant amounts that are awarded shall be prorated.

(e) Universal meals supplements shall be awarded in accordance with section 4017 of this title.

(Added 1969, No. 21, § 2; amended 1973, No. 252 (Adj. Sess.), § 1; 2007, No. 192 (Adj. Sess.), § 6.027; 2011, No. 58, § 22, eff. May 31, 2011; 2013, No. 50, § E.501.1; 2021, No. 67, § 5, eff. June 8, 2021; 2023, No. 64, § 2, eff. July 1, 2023.)

§ 1262b Rules

The State Board shall adopt rules governing grants under section 1262a of this title. The rules shall provide for grants from State funds in accordance with federal guidelines for food programs. The State Board may adopt other rules that are necessary to carry out the provisions of this subchapter.

(Added 1969, No. 21, § 3; amended 1971, No. 29; 1973, No. 252 (Adj. Sess.), § 2; 2011, No. 58, § 22, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 131, eff. Feb. 14, 2014.)

§ 1263 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 1264 Food program

(a)(1)(A) Each school board operating a public school shall cause to operate within each school in the school district a food program that makes available a school lunch, as provided in the National School Lunch Act, as amended, and a school breakfast, as provided in the Child Nutrition Act, as amended, to each attending student who qualifies for those meals under these acts every school day.

(B) In addition, each school board operating a public school shall cause to operate within each school in the school district the same school breakfast and school lunch program made available to students who qualify for those meals under the Child Nutrition Act and the National School Lunch Act, each as amended, for each attending student every school day at no charge. An approved independent school operating a school lunch and school breakfast program made available to students who qualify for those meals under the Child Nutrition Act and the National School Lunch Act, each as amended, shall offer the same to each attending student every school day at no charge in order to qualify for the universal meals supplement.

(C) In operating its school breakfast and lunch program, a school district and an approved independent school shall seek to achieve the highest level of student participation, which may include any or all of the following:

(i) providing breakfast meals that can be picked up by students;

(ii) making breakfast available to students in classrooms after the start of the school day; and

(iii) for school districts, collaborating with the school’s wellness community advisory council, as established under subsection 136(e) of this title, in planning school meals.

(D) A school district and an approved independent school shall count time spent by students consuming school meals during class as instructional time.

(2) Each school board operating a public school shall offer a summer snack or meals program funded by the Summer Food Service program or the National School Lunch Program for participants in a summer educational or recreational program or camp if:

(A) at least 50 percent of the students in a school in the district were eligible for free or reduced-price meals under subdivision (1) of this subsection for at least one month in the preceding academic year;

(B) the district operates or funds the summer educational or recreational program or camp; and

(C) the summer educational or recreational program or camp is offered 15 or more hours per week.

(b) In the event of an emergency, the school board may apply to the Secretary for a temporary waiver of the requirements in subsection (a) of this section. The Secretary shall grant the requested waiver if he or she finds that it is unduly difficult for the school district to provide a school lunch, breakfast, or summer meals program, or any combination of the three, and if he or she finds that the school district and supervisory union have exercised due diligence to avoid the emergency situation that gives rise to the need for the requested waiver. In no event shall the waiver extend for a period to exceed 20 school days or, in the case of a summer meals program, the remainder of the summer vacation.

(c) The State shall be responsible for the student share of the cost of breakfasts provided to all students eligible for a reduced-price breakfast under the federal school breakfast program and for the student share of the cost of lunches provided to all students eligible for a reduced-price lunch under the federal school lunch program.

(d), (e) [Repealed.]

(Added 1973, No. 252 (Adj. Sess.), § 3; amended 2003, No. 22, § 1; 2007, No. 192 (Adj. Sess.), § 6.028; 2009, No. 87 (Adj. Sess.), § 4, eff. April 28, 2010; 2011, No. 58, § 22, eff. May 31, 2011; 2013, No. 50, § E.501.2; 2013, No. 92 (Adj. Sess.), § 132, Feb. 14, 2014; 2019, No. 34, § 4; 2021, No. 67, § 6, eff. June 8, 2021; 2023, No. 64, § 2, eff. July 1, 2023.)

§ 1264a Locally produced foods

(a) It is a goal of the State that by the year 2023, at least 20 percent of all foods purchased by eligible entities, as defined by subsection (e) of this section, be locally produced foods. Eligible entities have the discretion to define what foods are included within the definition of “locally produced foods” for the purposes of this subsection and subsection (b) of this section.

(b) On or before December 31, 2021 and annually thereafter, an eligible entity operating a school lunch, breakfast, or summer meals program shall report to the Agency of Education an estimate of the percentage of the cost of all foods purchased by the eligible entity for those programs that were locally produced foods during the one-year period ending on June 30 of that year.

(c)(1) Beginning with the 2021–22 school year and thereafter, eligible entities shall be eligible for a local foods incentive grant (grant) from funds appropriated to the Agency of Education for this purpose.

(2) A eligible entity may apply for the grant if it has:

(A) developed a locally produced foods purchasing plan that describes the eligible entity’s goals for purchasing locally produced foods and its plan to achieve those goals;

(B) designated an individual as the food coordinator for locally produced foods, who shall be responsible for implementing the locally produced foods purchasing plan;

(C) developed a process for tracking the purchase of locally produced foods; and

(D) complied with the reporting requirement under subsection (b) of this section.

(3) An eligible entity that has satisfied the conditions under subdivision (2) of this subsection may, on or before January 15, 2022 or on or before January 15 of any year thereafter, apply to the Agency for the grant by submitting a certification, signed by the business manager for the eligible entity, that the eligible entity satisfies the conditions under subdivision (2) of this subsection.

(4) If an eligible entity is eligible for a grant under subdivision (3) of this subsection, then the Agency shall make the grant payment, subject to appropriation, on or before the following March 31 after submission of the eligible entity’s application, which is due on or before January 15 of that year, which shall be equal to $0.15 per reimbursable school lunch served by the eligible entity in the prior school year through the National School Lunch Program. An eligible entity may apply for this grant and receive this grant funding only once.

(5)(A) An eligible entity that has received a grant under subdivision (4) of this subsection (c) may, on or before January 15, 2023 or on or before January 15 of any year thereafter, apply for a further grant by submitting to the Agency of Education information that demonstrates that at least 15 percent of the cost of all foods purchased or grown, raised, or produced by the eligible entity during the one-year period ending on June 30 of the previous year were local to Vermont as defined in 9 V.S.A. § 2465a(b), excluding:

(i) foods purchased or grown, raised, or produced by the eligible entity that were used to provide catering services for which the eligible entity received compensation; and

(ii) fluid milk.

(B) If an eligible entity grows, raises, or produces food, it shall assign a fair market value to that food for the purpose of reporting its cost.

(C) A vendor that contracts with an eligible entity to supply food products shall certify to the supervisory union which of the food products supplied meet the definition of local to Vermont, taking into account the exclusions under subdivision (A) of this subdivision (c)(5).

(6) If an eligible entity is eligible for a grant under subdivision (5) of this subsection, the Agency shall, on or before the following April 30 after submission of the eligible entity’s application, which is due on or before January 15 of that year, make the grant payment, subject to appropriation, which shall be determined as follows:

(A) $0.15 per reimbursable school lunch served in the prior school year through the National School Lunch Program for supervisory unions purchasing at least 15 percent locally produced foods;

(B) $0.20 per reimbursable school lunch served in the prior school year through the National School Lunch Program for supervisory unions purchasing at least 20 percent locally produced foods; or

(C) $0.25 per reimbursable school lunch served in the prior school year through the National School Lunch Program for supervisory unions purchasing at least 25 percent locally produced foods.

(7) An eligible entity may apply for and receive grant funding under subdivisions (5) and (6) of this subsection for each year that it qualifies for this grant funding. For applications covering the 2020–2021 school year, meals served through the Summer Food Service Program shall also be counted for this grant payment.

(8) The Agency of Education may perform sample audits for any year that grant funds are paid to eligible entities under subdivision (6) of this subsection to verify that information provided to the Agency under subdivision (5) of this subsection is accurate. If the Agency makes a grant payment under subdivision (6) of this subsection to an eligible entity that was based on inaccurate information reported by the eligible entity, the Agency may seek reimbursement from the eligible entity for an overpayment or reimburse the eligible entity for an underpayment or may adjust future grant amounts under this section to reflect the over- or underpayment.

(d)(1) On or before January 31, 2022 and annually thereafter, the Agency of Education shall submit to the Senate Committees on Agriculture and on Education and the House Committees on Agriculture and Forestry and on Education in an aggregated form:

(A) the information received from eligible entities regarding the percentage of locally produced foods, as the eligible entities define them, that were reported under subsection (b) of this section; and

(B) the percentage of locally produced foods, using the grant funding definition, that were reported under subdivision (c)(5) of this section and the amount of grant funding paid to eligible entities under subdivision (c)(6) of this section in the prior school year.

(2) The provisions of 2 V.S.A. § 20(d) regarding expiration of required reports shall not apply to the reports required by this subsection.

(e) As used in this section, “eligible entity” means:

(1) a supervisory union or supervisory district; or

(2) an approved independent school operating a food program, as defined by subdivision 1261a(1) of this title, that also qualifies for the universal meals supplement pursuant to section 4017 of this title.

(Added 2021, No. 67, § 7, eff. June 8, 2021; amended 2023, No. 64, § 4, eff. July 1, 2023.)

§ 1265 Repealed

[Repealed]

(Added 1973, No. 252 (Adj. Sess.), § 4; amended 2003, No. 22, § 1; 2011, No. 58, § 22, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 133, eff. Feb. 14, 2014; 2023, No. 64, § 2, eff. July 1, 2023.)

Chapter 29 Registers

§ 1321 Form and contents of register

With the approval of the State Board, the Secretary shall prescribe the content of school registers used to keep records of student enrollment and daily attendance and to obtain statistical and other information from teachers and school officers. Schools shall maintain an electronic system for recording enrollment and attendance.

(Amended 1963, No. 13, § 1; 2013, No. 56, § 8, eff. May 30, 2013.)

§ 1322 Transmission to superintendents and teachers

Annually, in the month of June, the Secretary shall provide access to the school register. Superintendents shall ensure that school registrars and other staff have received the register and updated the current student information system at least 10 days prior to the beginning of the school year.

(Amended 2013, No. 56, § 8, eff. May 30, 2013.)

§ 1323 Registrar’s duties

The superintendent shall appoint a registrar for each school within the supervisory union. Pursuant to the school register, the registrar shall maintain the record of student enrollment, daily attendance, and other requested information and shall oversee transmission of student data to the Secretary on or before July 15 annually.

(Amended 1987, No. 137 (Adj. Sess.), § 1; 2013, No. 56, § 8, eff. May 30, 2013.)

§ 1324 Superintendent’s duties

At the end of the school year, the superintendent shall examine the register of each school, verify the accuracy of the information, and notify in writing the chair of the school board and the Secretary that the school register for the year is complete and accurate.

(Amended 1975, No. 48, § 12, eff. April 15, 1975; 1987, No. 137 (Adj. Sess.), § 2; 2001, No. 61, § 76, eff. June 16, 2001; 2003, No. 36, § 10; 2009, No. 91 (Adj. Sess.), § 9, eff. May 6, 2010; 2013, No. 56, § 8, eff. May 30, 2013.)

Chapter 31 Medical Inspection Generally; Health Services

Subchapter 1 Medical Inspection Generally; Health Services

§§ 1381-1384 Repealed

[Repealed]

2011, No. 129 (Adj. Sess.), § 5, eff. May 11, 2012.

§ 1385 Repealed

[Repealed]

2011, No. 75 (Adj. Sess.), § 81, eff. March 7, 2012.

§ 1386 Health services for children

In any school year, a school board may expend from its funds a sum not to exceed three percent of that year’s school budget for any necessary health service for a student whose parents are unable to pay for it. Expenditures for this purpose may include the purchase of eyeglasses and the provision of dental and other health services approved by the school nurse. The right to determine who is covered under this section shall be in the discretion of the school board.

(Amended 2013, No. 56, § 10, eff. May 30, 2013.)

§ 1387 Possession and self-administration of emergency medication

(a) Pursuant to the requirements of this section, each public and approved independent school in the State shall permit students with life-threatening allergies or with asthma to possess and self-administer emergency medication at school, on school grounds, at school-sponsored activities, on school-provided transportation, and during school-related programs.

(b) In each school year for which possession and self-administration of emergency medication is requested, the student’s parent or guardian shall provide the school with:

(1) written authorization, on a form to be provided by the school, for the student to possess and self-administer emergency medication;

(2) written documentation from the student’s physician:

(A) stating that the student has one or more life-threatening allergies or asthma, or both;

(B) providing the name of the emergency medication, the dosage, and the times and circumstances under which the medication is to be taken;

(C) affirming that the student:

(i) is capable of, and has been instructed by the physician in, the proper method of self-administration of the emergency medication;

(ii) has been advised of possible side-effects of the medication;

(iii) has been informed of when and how to access emergency services.

(c) In each school year for which possession and self-administration of emergency medication is requested, the student’s parent or guardian shall develop, in consultation with the school nurse or the designated health care staff at an approved independent school, a plan of action regarding responding to the student’s life-threatening allergy or allergies or asthma. The plan of action shall be based upon the written documentation provided by the student’s physician and shall include the name of each emergency medication, the dosage, and the times and circumstances under which the medication is to be taken. The written plan shall prominently state that the medication is solely for the use of the student covered by the plan. The parties developing the plan of action shall determine both to whom the plan, or notification of the plan, shall be given and the person or persons responsible for distribution or notification. The plan may include a requirement that the student notify a school employee or agent after self-administering emergency medication. The written plan shall become part of the student’s health records maintained by the school.

(d) The student’s parent or guardian shall sign a statement on a form to be provided by the school releasing the school and its employees and agents, including volunteers, from liability as a result of any injury arising from the student’s self-administration of the emergency medication, except when the conduct of the school, school employee, or agent would constitute gross negligence, recklessness, or intentional misconduct.

(e) Nothing in this section shall prohibit a public school district or an approved independent school from adopting school policies and individual plans of action regarding the possession and self-administration of emergency medication for medical conditions other than asthma and life-threatening allergies.

(Added 2007, No. 175 (Adj. Sess.), § 1.)

§ 1388 Stock supply and emergency administration of epinephrine

(a) As used in this section:

(1) “Designated personnel” means a school employee, agent, or volunteer who has completed training required by State Board policy and who has been authorized by the school administrator or delegated by the school nurse to administer epinephrine in accordance with a provider’s standing order or protocol pursuant to this section.

(2) “Epinephrine” means a U.S. Food and Drug Administration-approved single-use epinephrine delivery system containing a premeasured single dose of epinephrine.

(3) “Health care professional” means a physician licensed pursuant to 26 V.S.A. chapter 23 or 33, an advanced practice registered nurse licensed to prescribe drugs and medical devices pursuant to 26 V.S.A. chapter 28, or a physician assistant licensed to prescribe drugs and medical devices pursuant to 26 V.S.A. chapter 31.

(4) “School” means a public or approved independent school and extends to school grounds, school-sponsored activities, school-provided transportation, and school-related programs.

(5) “School administrator” means a school’s principal or headmaster.

(6) “School nurse” means a school nurse or associate school nurse endorsed by the Agency of Education pursuant to the Licensing of Educators and the Preparation of Educational Professionals rule (CVR 22-000-010) or registered nurses certified through the Office of Professional Regulation and contracted to perform the duties of a school nurse.

(b)(1) A health care professional may prescribe epinephrine in a school’s name, which may be maintained by the school for use as described in subsection (d) of this section. The health care professional shall issue to the school a standing order for the use of epinephrine prescribed under this section, including protocols for:

(A) recognizing whether an individual is experiencing a potentially life-threatening allergic reaction;

(B) administering epinephrine to an individual experiencing a potentially life-threatening allergic reaction;

(C) caring for an individual after administering epinephrine, including contacting emergency services personnel and documenting the incident; and

(D) disposing of used or expired epinephrine.

(2) A pharmacist licensed pursuant to 26 V.S.A. chapter 36 or a health care professional may dispense epinephrine prescribed to a school.

(c) A school may maintain a stock supply of epinephrine. A school may enter into arrangements with epinephrine manufacturers or suppliers to acquire these products for free or at reduced or fair market prices.

(d) The school administrator may authorize a school nurse or appropriately trained designated personnel, to:

(1) provide epinephrine to a student for self-administration according to a plan of action for managing the student’s life-threatening allergy maintained in the student’s school health records pursuant to section 1387 of this title;

(2) administer prescribed epinephrine to a student according to a plan of action maintained in the student’s school health records; and

(3) administer epinephrine, in accordance with the protocol issued under subsection (b) of this section, to a student or other individual at a school if the school nurse or designated personnel believe in good faith that the student or individual is experiencing anaphylaxis, regardless of whether the student or individual has a prescription for epinephrine.

(e) Designated personnel, a school, a school nurse, and a health care professional prescribing epinephrine to a school shall be immune from any civil or criminal liability arising from the administration or self-administration of epinephrine under this section, unless the person’s conduct constituted intentional misconduct. Providing or administering epinephrine under this section does not constitute the practice of medicine.

(f) The State Board, in consultation with the Department of Health, shall adopt policies for managing students with life-threatening allergies and other individuals with life-threatening allergies who may be present at a school. The policies shall:

(1) establish protocols to prevent exposure to allergens in schools;

(2) establish procedures for responding to life-threatening allergic reactions in schools, including postemergency procedures;

(3) implement a process for schools and the parents or guardians of students with a life-threatening allergy to jointly develop a written individualized allergy management plan of action that:

(A) incorporates instructions from a student’s health care professional regarding the student’s life-threatening allergy and prescribed treatment;

(B) includes the requirements of section 1387 of this title if a student is authorized to possess and self-administer emergency medication at school;

(C) becomes part of the student’s health records maintained by the school; and

(D) is updated each school year;

(4) require education and training for school nurses and designated personnel, including training related to storing and administering epinephrine and recognizing and responding to a life-threatening allergic reaction; and

(5) require each school to make publicly available protocols and procedures developed in accordance with the policies adopted by the State Board under this section.

(Added 2013, No. 68, § 4; amended 2025, No. 53, § 1, eff. July 1, 2025.)

§ 1389 Possession and application of sunscreen

(a) Pursuant to the requirements of this section, each public and approved independent school in the State shall permit students, with the written authorization of a parent or guardian, to possess and self-administer a topical, nonaerosolized sunscreen while on school property or at a school-sponsored event or activity without being required to provide a medical provider’s note or prescription or having to store the sunscreen in a specific location. A school shall keep on file a parent’s or guardian’s written authorization.

(b) School personnel shall not be required to assist students in applying sunscreen and shall not be responsible for ensuring that the sunscreen is applied to the student.

(c) The school and school personnel shall be immune from civil liability for any actions taken in good faith in reliance on the provisions of this section. This section shall not apply to recklessness or intentional misconduct on the part of the school or school personnel.

(d) As used in this section, “sunscreen” means a product regulated by the U.S. Food and Drug Administration for over-the-counter use for the purpose of limiting ultraviolet-light-induced skin damage.

(Added 2023, No. 98 (Adj. Sess.), § 1, eff. July 1, 2024.)

Subchapter 2 Testing Sight and Hearing

§ 1421 Repealed

[Repealed]

2015, No. 48, § 3.

§ 1422 Periodic hearing and vision screening; guidelines

School districts and primary care providers shall conduct periodic hearing and vision screening of school-aged children pursuant to research-based guidelines developed by the Commissioner of Health in consultation with the Secretary of Education. School districts and primary care providers will attempt to avoid duplicating services provided by the other and will share information as practicable and allowable by law.

(Amended 1969, No. 34; 2007, No. 154 (Adj. Sess.), § 6; 2009, No. 44, § 31, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 134, eff. Feb. 14, 2014.)

Subchapter 3 Health and Safety Generally

§ 1431 Concussions and other head injuries

(a) Definitions. As used in this subchapter:

(1) “Coach” means a person who instructs or trains students on a school athletic team.

(2) “Collision sport” means football, hockey, lacrosse, or wrestling.

(3) “Contact sport” means a sport, other than football, hockey, lacrosse, or wrestling, defined as a contact sport by the American Academy of Pediatrics.

(4) “Health care provider” means an athletic trainer, or other health care provider, licensed pursuant to Title 26, who has within the preceding five years been specifically trained in the evaluation and management of concussions and other head injuries. Training pursuant to this subdivision shall include training materials and guidelines for practicing physicians provided by the Centers for Disease Control and Prevention, if available.

(5) “School athletic team” means an interscholastic athletic team or club sponsored by a public or approved independent school for elementary or secondary students.

(6) “Youth athlete” means an elementary or secondary student who is a member of a school athletic team.

(b) Guidelines and other information. The Secretary of Education or designee, assisted by members of the Vermont Principals’ Association selected by that association, members of the Vermont School Boards Insurance Trust, and others as the Secretary deems appropriate, shall develop statewide guidelines, forms, and other materials, and update them when necessary, that are designed to educate coaches, youth athletes, and the parents and guardians of youth athletes regarding:

(1) the nature and risks of concussions and other head injuries;

(2) the risks of premature participation in athletic activities after receiving a concussion or other head injury;

(3) the importance of obtaining a medical evaluation of a suspected concussion or other head injury and receiving treatment when necessary;

(4) effective methods to reduce the risk of concussions occurring during athletic activities; and

(5) protocols and standards for clearing a youth athlete to return to play following a concussion or other head injury, including treatment plans for such athletes.

(c) Notice and training. The principal or headmaster of each public and approved independent school in the State, or a designee, shall ensure that:

(1) the information developed pursuant to subsection (b) of this section is provided annually to each youth athlete and the athlete’s parents or guardians;

(2) each youth athlete and a parent or guardian of the athlete annually sign a form acknowledging receipt of the information provided pursuant to subdivision (1) of this subsection and return it to the school prior to the athlete’s participation in training or competition associated with a school athletic team;

(3)(A) each coach of a school athletic team receive training no less frequently than every two years on how to recognize the symptoms of a concussion or other head injury, how to reduce the risk of concussions during athletic activities, and how to teach athletes the proper techniques for avoiding concussions; and

(B) each coach who is new to coaching at the school receive training prior to beginning his or her first coaching assignment for the school; and

(4) each referee of a contest involving a high school athletic team participating in a collision sport receive training not less than every two years on how to recognize concussions when they occur during athletic activities.

(d) Participation in athletic activity.

(1) Neither a coach nor a health care provider shall permit a youth athlete to continue to participate in any training session or competition associated with a school athletic team if the coach or health care provider knows or should know that the athlete has sustained a concussion or other head injury during the training session or competition.

(2) Neither a coach nor a health care provider shall permit a youth athlete who has been prohibited from training or competing pursuant to subdivision (1) of this subsection to train or compete with a school athletic team until the athlete has been examined by and received written permission to participate in athletic activities from a health care provider.

(e) Action plan.

(1) The principal or headmaster of each public and approved independent school in the State or a designee shall ensure that each school has a concussion management action plan that describes the procedures the school shall take when a student athlete suffers a concussion. The action plan shall include policies on:

(A) who makes the initial decision to remove a student athlete from play when it is suspected that the athlete has suffered a concussion;

(B) what steps the student athlete must take in order to return to any athletic or learning activity;

(C) who makes the final decision that a student athlete may return to athletic activity; and

(D) who has the responsibility to inform a parent or guardian when a student on that school’s athletic team suffers a concussion.

(2) The action plan required by subdivision (1) of this subsection shall be provided annually to each youth athlete and the athlete’s parents or guardians.

(3) Each youth athlete and a parent or guardian of the athlete shall annually sign a form acknowledging receipt of the information provided pursuant to subdivision (2) of this subsection and return it to the school prior to the athlete’s participation in training or competition associated with a school athletic team.

(f) Health care providers; presence at athletic events.

(1) The home team shall ensure that a health care provider is present at any athletic event in which a high school athletic team participates in a collision sport. If an athlete on the visiting team suffers a concussion during the athletic event, the health care provider shall notify the visiting team’s athletic director within 48 hours after the injury occurs.

(2) Home teams are strongly encouraged to ensure that a health care provider is present at any athletic event in which a high school athletic team participates in a contact sport.

(3) A school shall notify a parent or guardian within 24 hours of when a student participating on that school’s athletic team suffers a concussion.

(Added 2011, No. 58, § 40, eff. May 31, 2011; amended 2011, No. 171 (Adj. Sess.), § 39a; 2013, No. 68, § 2.)

§ 1432 Menstrual products

(a) By enacting this statute, the General Assembly intends to ensure that all students attending a public school or an approved independent school have access to menstrual products at no cost and without having to request them.

(b)(1) A school district and an approved independent school shall make menstrual products available at no cost for each school within the district or under the jurisdiction of the board of the independent school in:

(A) a majority of gender-neutral bathrooms and bathrooms designated for female students that are generally used by students who are eight years of age or older; and

(B) the school nurse’s office.

(2) The school district or independent school, in consultation with the school nurse who provides services to the school, shall determine which of the gender-neutral bathrooms and bathrooms designated for female students to stock with menstrual products and which brands to use.

(c) School districts and approved independent schools shall bear the cost of supplying menstrual products and may seek grants or partner with a nonprofit or community-based organization to fulfill this obligation.

(Added 2021, No. 66, § 11, eff. June 7, 2021.)

Chapter 33 Fire and Emergency Preparedness Drills and Safety Patrols

§ 1480 Emergency operations plans

(a) Each supervisory union or supervisory district shall adopt and maintain an all-hazards emergency operations plan for each school site that is at least as comprehensive as the template maintained by the Vermont School Safety Center. The plan shall be reviewed and updated on an annual basis, in collaboration with local emergency first responders and local emergency management officials.

(b) Each approved and recognized independent school shall adopt and maintain an all-hazards emergency operations plan consistent with the requirements of subsection (a) of this section.

(c) The Vermont School Safety Center shall maintain an emergency operations plan template and update the template as appropriate.

[Subsection (d) effective July 1, 2026.]

(d) The template maintained by the Vermont School Safety Center shall include, at a minimum, hazard-specific provisions for:

(1) Acute cardiac events in schools, including protocols that address:

(A) the use and maintenance of automated external defibrillator (AED) devices;

(B) the specific steps to reduce death from cardiac arrest during school activities or within school or district facilities, which shall be consistent with nationally recognized, evidence-based standards;

(C) the appropriate use of school personnel to respond to incidents involving an individual experiencing sudden cardiac arrest or a similar life-threatening emergency while on school grounds;

(D) implementation of AED placement and routine maintenance within each school or district facility, which shall be consistent with applicable nationally recognized, evidence-based standards, and which shall include a requirement for clearly marked and easily accessible AEDs at each athletic venue where practices or competitions are held;

(E) required staff training in CPR and AED use and practice drills regarding the cardiac response plan; and

(2) An athletic emergency action plan (AEAP) for all public or approved and recognized independent schools with an athletic department or organized athletic program. The AEAP shall detail the steps to be taken in response to a serious or life-threatening injury of a student participating in sports or other athletic activities. The AEAP established by public and independent schools pursuant to this subdivision shall be consistent with the athletic emergency action plans policy established by the Vermont Principals’ Association.

(Added 2023, No. 29, § 2, eff. July 1, 2025; amended 2025, No. 72, § 12, eff. July 1, 2026.)

§ 1481 Fire and emergency preparedness drills

(a) Each school board in a district that operates a school shall adopt a policy mandating each school site to conduct options-based response drills at each school site in the fall and spring of each academic year. The policy shall require age-appropriate options-based response drills, including fire drills, to be conducted following the guidance issued by the Vermont School Safety Center jointly with the Vermont School Crisis Planning Team and shall require notification to parents and guardians not later than one school day before an options-based response drill is conducted. In issuing the guidance, the Vermont School Safety Center and the Vermont School Crisis Planning Team shall include trauma-informed best practices for implementing options-based response drills. A superintendent shall report completion of the biannual drills to the Agency of Education in a format approved by the Secretary.

(b) Each approved or recognized independent school or other educational institution, other than a university or college, shall adopt a policy mandating the school to conduct options-based response drills and fire drills in the fall and spring of each academic year, consistent with the requirements of subsection (a) of this section. The head of school shall report completion of the biannual drills to the Agency of Education in a format approved by the Secretary.

(c) A school district, independent school, or educational institution whose administrative personnel neglect to comply with the provisions of this section shall be fined not more than $500.00.

(d) Annually, the Vermont School Safety Center and Agency of Education shall review the reports submitted according to this section and shall ensure compliance and identify future planning and training needs.

(Amended 1973, No. 214 (Adj. Sess.), § 5; 1991, No. 24, § 11; 2003, No. 16, § 2; 2003, No. 141 (Adj. Sess.), § 1, eff. April 1, 2005; 2013, No. 92 (Adj. Sess.), § 136, eff. Feb. 14, 2014; 2023, No. 29, § 1, eff. August 1, 2023.)

§ 1482 Safety patrols

(a) In the exercise of authorized control and supervision over students attending schools and other educational institutions in this State, both public and independent, the school board or other directing authority of a school or institution may organize and supervise school safety patrols and the appointment, with the permission of parents, of students as members for the purpose of influencing and encouraging other students to refrain from crossing public highways at points other than at regular crossings and for the purpose of directing students not to cross highways at times when the presence of traffic would make crossing unsafe.

(b) The school board or other directing authority shall obtain and keep in force adequate accident insurance to protect students acting as safety patrols during the performance of their services.

(c) The Commissioner of Public Safety shall, upon the request of a school board or other directing authority of any public or independent educational institution, assign an officer or officers of the State Police to assist the school authorities to organize and supervise school safety patrols, advise and make recommendations concerning the elimination of traffic hazards endangering the safety of students, and otherwise assist in promoting safety education in the schools of the State. Within the appropriation of the Department of Public Safety, the Commissioner shall furnish any equipment, material, and supplies that he or she deems necessary for the proper functioning of the school safety patrols. Nothing in this section shall be construed to authorize or permit any safety patrol member to direct vehicular traffic.

(d) Liability shall not attach either to a school, educational institution, governing board, individual director, trustee, superintendent, teacher, or other school authority, parent, sponsor, sponsoring organization, or representative of a sponsor, or to the Department of Public Safety or to any of its employees, by virtue of the organization, maintenance, or operation of a school safety patrol and school safety patrol field day activity organized, maintained, and operated under the authority of this section because of injuries sustained by any student or person, whether a member of the patrol or otherwise, by reason of the operation and maintenance.

(Amended 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 137, eff. Feb. 14, 2014.)

§ 1483 Chapter printed in manuals or handbooks

This chapter shall be printed in manuals or handbooks prepared for the guidance of teachers in a school or institution subject to the provisions of this chapter.

(Amended 1977, No. 33, § 4; 2013, No. 92 (Adj. Sess.), § 138, eff. Feb. 14, 2014.)

§ 1484 Access control and visitor management policy

(a) Each supervisory union board, member district board, or supervisory district board shall adopt an access control and visitor management policy that, at a minimum, requires that all school sites and supervisory union and supervisory district offices lock exterior doors during the school day. The policy shall require that all visitors sign in at a centralized location prior to gaining full access to the school or office site. If a school recognizes a need to leave a specific structure unlocked as needed for agricultural, recreational, or other reasonably practical purposes directly related to a school’s mission or curriculum, it may justify leaving that structure unlocked in its visitor policy.

(b) Each approved and recognized independent school shall adopt a written access control and visitor management policy consistent with the requirements in subsection (a) of this section.

(Added 2023, No. 29, § 3, eff. August 1, 2023.)

§ 1485 Behavioral threat assessment teams

(a) Legislative intent.

(1) It is the intent of the General Assembly that behavioral threat assessment teams be used for the purpose of preventing instances of severe and significant targeted violence against schools and school communities, such as threats related to weapons and mass casualties and bomb threats. The goal of these teams is to assess and appropriately respond to potential reported threats to school communities.

(2) It is the intent of the General Assembly that use of behavioral threat assessment teams shall not contribute to increased school exclusion or unnecessary referrals of students to the criminal justice and school discipline systems and shall not disproportionately impact students from historically marginalized backgrounds, including students with disabilities.

(b) Policy.

(1) As used in this section, “behavioral threat assessment” means a fact-based, systematic process designed to identify, gather information about, assess, and manage dangerous or violent situations.

(2) The Secretary of Education, in consultation with stakeholder groups, including the Commissioner of the Department for Children and Families, Vermont School Boards Association, and Vermont Legal Aid Disability Law Project, shall develop, and from time to time update, a model behavioral threat assessment team policy and procedures. In developing the model policy and procedures, the Secretary shall follow guidance issued by the Vermont School Safety Center on best practices in the use of behavioral threat assessment teams. The model policy and procedure shall require law enforcement contact in the case of imminent danger to individuals or the school community and shall address the following:

(A) the criteria that shall be used to assess a student’s threatening behavior;

(B) the process for reporting threatening behavior;

(C) the civil rights and due process protections to which students are entitled in school settings;

(D) when and how to refer to or involve law enforcement in the limited instances when such referral is appropriate, which shall not include student behavior that is a violation of the school conduct code but that is not also a crime; and

(E) the support resources that shall be made available, including mental health first aid, counseling, and safety plans.

[Subdivision (b)(3) effective October 1, 2025.]

(3) Each school district and each approved or recognized independent school shall develop, adopt, and ensure implementation of a policy and procedures for use of behavioral threat assessment teams that is consistent with and at least as comprehensive as the model policy and procedures developed by the Secretary. Any school board or independent school that fails to adopt such a policy shall be presumed to have adopted the most current model policy published by the Secretary. Any superintendent or independent school that fails to adopt such procedures shall be presumed to have adopted the most current model procedures published by the Secretary.

(4) The Vermont School Safety Center shall issue guidance on the best practices of behavioral threat assessment teams. The guidance shall include best practices on bias and how to reduce incidents of bias, developed in consultation with the Office of Racial Equity.

(c) Discipline and student support.

(1) Consistent with the legislative intent in subsection (a) of this section, if a behavioral threat assessment team recommends, in addition to providing support resources, any action that could result in removal of a student from the student’s school environment pending or after a behavioral threat assessment, the recommendation shall only be carried out in a manner consistent with existing law, regulation, and associated procedures on student discipline pursuant to section 1162 of this title and Agency of Education, Pupils (CVR 22-000-009), as well as federal and State law regarding students with disabilities or students who require additional support.

(2) Behavioral threat assessments shall be structured and used in a way that is intended to minimize interaction with the criminal justice system. Law enforcement referral and involvement may be appropriate only in cases involving threats, which shall not include student behavior that is a violation of the school conduct code but that is not also a crime.

(d) Training.

(1) Each supervisory union, supervisory district, and approved or recognized independent school shall ensure behavioral threat assessment team members receive training at least annually in best practices of conducting behavioral threat assessments, as well as bias training. The annual training shall include the following topics:

(A) the rules governing exclusionary discipline, Agency of Education, Pupils (CVR 22-000-009);

(B) the purpose, use, and proper implementation of the manifestation determination review process;

(C) Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; and other civil rights laws;

(D) the negative consequences of exclusion from school;

(E) the impact of trauma on brain development; and

(F) group bias training, specifically focused on bias in carrying out the duties of the behavioral threat assessment team.

(2) The Agency of Education, in consultation with the Department of Public Safety, shall develop guidance and resources to assist supervisory unions, supervisory districts, and independent schools in providing the annual training required under this subsection. In developing the guidance on bias training for behavioral threat assessment teams, the Agency and Department shall consult with the Vermont Office of Racial Equity.

[Subsection (e) effective July 1, 2027.]

(e) Data reporting and collection. Annually, each supervisory union, supervisory district, and approved or recognized independent school shall report data related to completion of and outcomes of all behavioral threat assessments and manifestation determination reviews to the Agency in a format approved by the Secretary. At a minimum, the annual report shall include:

(1) the names of the members of the behavioral assessment team;

(2) the number of behavioral threat assessments and manifestation determination reviews conducted in the preceding year and for each assessment or review conducted:

(A) a description of the behavior requiring an assessment;

(B) the age, grade, race, gender, disability status, and eligibility for free or reduced-price school meals of the student requiring the assessment; and

(C) the results of each assessment or review;

(3) the number of students subjected to more than one behavioral threat assessment or manifestation determination review;

(4) the amount of time a student is out of school pending completion of a behavioral threat assessment;

(5) information regarding whether a student subject to a behavioral threat assessment was also subject to exclusionary discipline for the same behavior, including the length of such discipline;

(6) information regarding whether law enforcement was involved in a behavioral threat assessment;

(7) information regarding whether the threatening behavior was also reported to law enforcement; and

(8) any additional data the Secretary of Education determines may be necessary.

(Added 2023, No. 29, § 4; amended 2025, No. 72, § 2, eff. June 27, 2025.)

Chapter 35 Interstate Compact for Education

§§ 1501-1509 Repealed

[Repealed]

1993, No. 140 (Adj. Sess.), § 69; 1995, No. 178 (Adj. Sess.), § 189a.

Chapter 37 Career Technical Education

Subchapter 1 General Provisions

§ 1521 Purpose

(a) It is the policy of the State of Vermont that all Vermonters should receive educational services that enable them to master the skills essential for further education and training or for successful entry into or advancement in the workplace.

(b) It is further the policy of the State of Vermont that Vermont’s career technical education system shall be based on clear standards for student performance and career technical education program performance and that achievement of these standards shall be measured on a regular and ongoing basis.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1991, No. 204 (Adj. Sess.), § 1; 1997, No. 138 (Adj. Sess.), § 5, eff. April 27, 1998.)

§ 1522 Definitions

As used in this chapter:

(1) “Secondary CTE student” means a resident of this State, of any age, who has not completed high school and is enrolled in a secondary career technical education program.

(2) “Adult student” means a resident of this State, of any age, who has completed high school and who needs additional career technical education for entry into the labor force or who needs to upgrade skills to qualify for higher pay or for more dependable employment.

(3) “Secondary career technical education” or “secondary CTE” means an educational program leading to a high school diploma, designed to provide students with career and technical knowledge, skills, and attitudes that will prepare them for further education, enhance their employment options, or lead to an industry-recognized credential.

(4) “Regional CTE center” means any of the 16 regional CTE centers operating with State support on January 1, 1984 and any other centers so designated thereafter by rule of the State Board.

(5) “Sending district” means a school district paying tuition on behalf of a student to a school district that provides CTE courses.

(6) “Receiving district” means a school district, inside or outside of this State, receiving tuition on behalf of a student to whom it provides career technical education. The classification of a school district as a receiving district is not altered by reason of the participation of that district in a contract for management of the regional CTE center under section 1543 of this title.

(7) “Service region” means, for each regional CTE center, a region surrounding it designated by rule of the State Board under section 1531 of this title. The State Board may designate a service region for two or more comprehensive high schools if that region is not served by a career technical center.

(8), (9) [Repealed.]

(10) “CTE tuition” means the amount calculated by subtracting from total regional technical CTE center costs all expenditures from State and federal grants except for incentive grants, adult education grants, or other State grants as defined by State Board rule, then dividing the result by the sum of the actual number of full-time equivalent out-of-state students and the average of the full-time equivalent Vermont students for the three prior years.

(11) “Adult career technical education” or “adult CTE” means an educational program that is not part of a postsecondary degree program, that does not award postsecondary credit, and that provides students with career and technical knowledge, skills, and attitudes that will prepare them for further education, enhance their employment options, or lead to an industry-recognized credential.

(12) “Postsecondary career technical education” or “postsecondary CTE” means an educational program or course of study that awards postsecondary credit and is designed to provide students with career and technical knowledge, skills, and attitudes that will prepare them for further education, enhance their employment options, or lead to an industry-recognized credential.

(13) “Postsecondary CTE student” means a resident of this State, of any age, who desires to enroll in, or is enrolled in, a postsecondary CTE program.

(14) “Comprehensive high school” means a public or independent school other than a career technical center that provides secondary career technical education approved under section 1533 of this title.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 1; 1991, No. 204 (Adj. Sess.), § 2; 1993, No. 233 (Adj. Sess.), §§ 49a, 49b, eff. June 21, 1994; 1997, No. 138 (Adj. Sess.), § 24, eff. July 1, 1999; 2001, No. 63, § 164d, eff. July 1, 2002; 2013, No. 92 (Adj. Sess.), § 140, eff. Feb. 14, 2014.)

Subchapter 2 State Board of Education

§ 1531 Responsibility of State Board

(a) The State Board has overall responsibility for the effectiveness of career technical education. This requires the Board to collect suitable information and to take appropriate steps within its legal, financial, and personnel resources to ensure that:

(1) Career technical education is equally available to students and is of consistent quality in all parts of the State, including areas remote from career technical centers.

(2) The timing and content of career technical education is properly and flexibly coordinated with academic instruction.

(3) Career technical education is available to adult students, particularly in areas where unemployment is high or occupational retraining needs are great. This includes entering into contracts with postsecondary educational institutions or with any resource supplier to provide adult programs at career technical centers.

(4) Career technical education programs and courses of study are demonstrably useful to their graduates in obtaining employment or improving the quality of their employment.

(5) Career technical education programs are well coordinated with related State programs in education and training. This includes ensuring that career technical education graduates receive appropriate credit toward requirements in apprenticeship programs and professional licensing programs.

(b) In order to provide regional career technical education services efficiently, the State Board shall designate a service region for each career technical center. However, the Board may designate a service region for two or more comprehensive high schools if that region is not served by a career technical center.

(c) For a school district that is geographically isolated from a Vermont career technical center, the State Board may approve a career technical center in another state as the career technical center that district students may attend. In this case, the school district shall receive transportation assistance pursuant to section 1563 of this title and tuition assistance pursuant to subsection 1561(c) of this title. Any student who is a resident in the Windham Southwest Supervisory Union and who is enrolled at public expense in the Charles H. McCann Technical School or the Franklin County Technical School shall be considered to be attending an approved career technical center in another state pursuant to this subsection, and, if the student is from a school district eligible for a merger support grant pursuant to section 4015 of this title or a small school weight pursuant to section 4010 of this title, the student’s full-time equivalency shall be computed according to time attending the school.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 14; 1991, No. 204 (Adj. Sess.), § 7; 1993, No. 233 (Adj. Sess.), § 49c, eff. June 21, 1994; 1999, No. 10, § 1; 1999, No. 29, § 49, eff. May 19, 1999; 2001, No. 142 (Adj. Sess.), § 188a; 2003, No. 66, § 183a; 2013, No. 56, § 28; 2021, No. 127 (Adj. Sess.), § 22, eff. July 1, 2024.)

§ 1532 Minimum standards; measurement of standards

(a) The State Board shall adopt by rule:

(1) Minimum standards for the operation and performance of career technical centers that include the education quality standards adopted by the State Board under subdivision 164(9) and section 165 of this title.

(2) Standards for student performance based on the standards adopted by the State Board under subdivision 164(9) of this title and standards for industry recognized credentials.

(3) The minimum number of days of career technical instruction for each academic year.

(4) The minimum number of hours of instruction for each course of study within career technical education.

(5) The availability of remedial programs offered to students by career technical centers or by another school, agency, or program.

(6) Accounting procedures and standards, including methods for calculating tuition for career technical education.

(7) A system of equipment inventory, amortization, and maintenance.

(8) Procedures and requirements for measurement of student knowledge and skill upon entry into and exit from the career technical program. The purpose of the measurement shall be to determine student achievement in relation to the standards for academic and career technical competence as adopted under subdivision (2) of this subsection. Aggregate results shall be reported to the communities in the service region along with other items reported pursuant to subdivision 165(a)(2) of this title.

(b) The following shall be adopted by procedure or rule:

(1) competencies that graduates of each kind of career technical program should be able to demonstrate, including career technical competencies necessary for the student’s intended employment;

(2) minimum admissions competencies for entrance into each career technical course of study;

(3) procedures by which the Secretary will review and comment on the employment qualifications of candidates for positions at career technical centers for whom State salary assistance will be requested;

(4) requirements for career technical centers to provide programs designed to acquaint prospective students with career technical courses of study;

(5) procedures by which the Secretary will review and approve use of course of study credits in career technical education to meet State graduation requirements;

(6) procedures, including communications with the sending school districts, to identify unique or specific circumstances relative to a student’s progress or safety.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 1a; 1991, No. 204 (Adj. Sess.); 1997, No. 138 (Adj. Sess.), § 6, eff. April 27, 1998; 2015, No. 23, § 27.)

§ 1533 Career technical center evaluation

(a) At least once in each period of five years, and in coordination with the Vermont Advisory Council on Career Technical Education, the Secretary shall evaluate the effectiveness of each career technical center in the State. The State Board by rule shall prescribe the method for conducting these evaluations.

(b) Evaluations of career technical centers shall consider at least the following areas:

(1) compliance with this chapter and the rules of the State Board;

(2) the condition and suitability of the facility and its equipment;

(3) the quality of the course of study, including faculty development policies and instruction;

(4) the overall success of the center at combining academic education, skill training, and employability trait development into its program;

(5) the overall success of the center in providing regionwide services and a flexible response to student needs, integrating its courses of study into a coherent program, and coordinating its program with postsecondary career technical education services;

(6) the satisfaction of the center’s customer groups, including graduates, sending schools, and local industry;

(7) the adequacy and effectiveness of the center in meeting the educational and employment needs of all its eligible students, including its success in taking steps to encourage each student to consider enrolling in courses not traditional for that student’s gender.

(c) [Repealed.]

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1991, No. 204 (Adj. Sess.), §§ 3, 7; 2003, No. 122 (Adj. Sess.), § 294w; 2013, No. 92 (Adj. Sess.), § 142, eff. Feb. 14, 2014; 2015, No. 23, § 33.)

§ 1534 Course of study evaluation

(a) At least once in each period of five years, and in coordination with the Vermont Advisory Council on Career Technical Education, the Secretary shall evaluate the effectiveness of each course of study offered by any career technical center in the State. The State Board by rule shall prescribe the method for conducting these evaluations.

(b) Evaluations of courses of study shall consider at least the following areas as they apply in every center offering that course:

(1) the content and quality of the program, including the scope of instruction and the academic and practical competencies required for completion;

(2) the length of the course;

(3) the adequacy of equipment used in the course;

(4) the appropriateness of the program and its content in light of later career and higher education choices made by recent graduates;

(5) the usefulness of the program to recent graduates;

(6) coordination with other State programs, especially licensing, job training, and apprenticeship programs;

(7) possibilities for decentralization of the program.

(c) [Repealed.]

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1991, No. 204 (Adj. Sess.), § 7; 2003, No. 122 (Adj. Sess.), § 294w; 2013, No. 92 (Adj. Sess.), § 143, eff. Feb. 14, 2014.)

Subchapter 3 Local Career Technical Education Programs

§ 1541 Responsibility of local school boards that operate career technical centers

(a) A school board that operates a CTE center has responsibility for providing secondary and adult career technical education services within its service region.

(b) A school board that operates a CTE center shall establish a regional advisory board. It shall give due regard to the policy and financial recommendations of its regional advisory board. When the school board rejects a written recommendation of a regional advisory board, or fails to adopt a recommendation after 30 days, it shall notify the advisory board and the Secretary in writing, stating its reasons. If the State Board designates a service region for two or more comprehensive high schools, the boards of the high schools shall establish a joint regional advisory board.

(c) In consultation with its regional advisory board, a school board that operates a regional CTE center shall:

(1) annually set the budget for operation of the center;

(2) establish the secondary and adult curriculum of the regional center, including courses of study offered;

(3) whenever advantageous to the service region, provide for the decentralization of its career technical programs, including the creation of rotating and satellite programs;

(4) employ and, as need requires, dismiss an assistant director for adult education and, subject to section 243 of this title, a director of career technical education;

(5) establish admission and program completion policies;

(6) periodically evaluate the success of the center in serving all parts of its service area and in offering useful adult training and education programs;

(7) periodically evaluate the quality of each course of study offered by the center;

(8) coordinate use of the center with the Vermont State Colleges; with other State programs, including licensing, job training, and apprenticeship programs; and other approved institutions, for the provision of postsecondary career technical education programs, and charge fees not exceeding actual direct and indirect costs of the use of the center;

(9) offer programs designed to acquaint prospective students with CTE programs that do not require an enrollment commitment; and

(10) after giving due consideration to efficient and cost-effective use of the center, establish fees for building and equipment use.

(d) A school board that operates a CTE center:

(1) shall establish a CTE tuition;

(2) shall make the center’s facilities and equipment available for providing CTE education to adults; and

(3) shall use and maintain all facilities designed and constructed for career technical education in a manner consistent with that purpose, except when those facilities are not needed for CTE and the Secretary consents.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), §§ 2, 3; 1989, No. 243 (Adj. Sess.), § 2; 1991, No. 204 (Adj. Sess.), §§ 4, 7; 1993, No. 233 (Adj. Sess.), § 49d, eff. June 21, 1994; 2007, No. 192 (Adj. Sess.), § 6.004, eff. June 7, 2008; 2013, No. 92 (Adj. Sess.), § 145, eff. Feb. 14, 2014.)

§ 1541a Responsibility of local boards in sending districts

(a) A school board of a sending district that offers public education in grade 11 or 12 shall:

(1) Provide students enrolled in grades 11 and 12 with a genuine opportunity to participate fully and to benefit from career technical education.

(2) Provide students enrolled in programs at career technical centers transportation between its high school building and the career technical center or centers in its designated service region or regions.

(3) If the career technical center for the region does not offer a course of study desired by a student, pay tuition on behalf of that student who applies and is accepted to another career technical center that does offer such a course of study. The district of residence is not responsible for providing transportation for a student attending a career technical center under this subdivision.

(b) A school district that maintains a secondary school shall provide the names and addresses of enrolled students to the CTE center for its region for the limited purpose of the CTE center providing information to students and their parents about CTE center offerings. An approved independent school shall provide to the CTE center the names and addresses of enrolled secondary students for whom it receives publicly funded tuition dollars.

(Added 1987, No. 238 (Adj. Sess.), § 4; amended 1991, No. 204 (Adj. Sess.), § 7; 1997, No. 138 (Adj. Sess.), § 7, eff. April 27, 1998; 2013, No. 56, § 5, eff. May 30, 2013.)

§ 1542 Regional advisory board

(a) Each regional advisory board shall consist of:

(1) one member from each public high school in the center’s service region, elected by and from among the members of that high school board for a term determined by that high school board; and

(2) the superintendent or his or her designee of each supervisory union within the center’s service region; and

(3) one member elected for a term of three years by and from among the school board of each sending district in the center’s service region that does not have a public high school represented on the advisory board under subdivision (1) of this section; except that, if there are more than three such districts in the center’s service area, the advisory board shall select three school boards to represent the interests of all such districts, shall rotate its selections among the districts, and shall stagger the expiration of initial terms; and

(4) one member of the board of each independent comprehensive high school within a service region, elected by the members of that board for a term determined by that board; and

(5) once constituted, the regional advisory board shall elect three additional members for terms of three years to represent the interests of employers or employees, provided that no two terms shall expire in any year.

(b) A regional advisory board, with the consent of the State Workforce Development Board, may delegate its responsibilities to the grantee that performs workforce development activities in the region pursuant to 10 V.S.A. § 542. In this case, the grantee shall become the regional advisory board unless and until the school board that operates the career technical center requests that the regional advisory board be reconstituted pursuant to subsection (a) of this section.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 5; 1993, No. 233 (Adj. Sess.), § 49e, eff. June 21, 1994; 2001, No. 33, § 2; 2013, No. 92 (Adj. Sess.), § 147, eff. Feb. 14, 2014; 2015, No. 23, § 34; 2015, No. 157 (Adj. Sess.), § K.3.)

§ 1543 Repealed

[Repealed]

2001, No. 33, § 6.

§ 1544 Career technical courses in other schools

Subject to any direction as to courses, teachers, or equipment that the State Board may prescribe by rule, high schools may include within their courses of study pretechnical or career technical courses, or both. Before establishing such a program, a high school shall consult with the regional advisory board for its CTE service region.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 6; 1991, No. 204 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 148, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 76.)

§ 1545 Credits and grades earned

(a) Grades earned in a course offered within a CTE program approved by the State Board shall not be altered by any public school or approved or recognized independent school in Vermont and shall be applied by the school toward any State graduation requirements in accordance with rules adopted by the State Board. Any State Board rules regarding earning of credits shall allow flexibility with respect to the integration of CTE education and other academic courses.

(b) The credits earned for a career technical education program approved by the State Board shall be honored by any public or independent school within Vermont. If necessary to enable a student to participate in career technical education and graduate with his or her class, the credits earned shall be applied toward any school district or independent school graduation requirements exceeding the minimum number of credits required by the State Board. The school board of the high school from which the student wishes to graduate shall make a determination as to whether the credits shall be applied toward graduation requirements. A decision of a school board may be appealed to the Secretary who shall construe this section to favor participation in career technical education.

(c) For any student attending the Vermont Academy for Science and Technology pursuant to subsection 4011(e) of this title, the credits and grades earned shall, upon request of the student or the student’s parent or guardian, be applied toward graduation requirements at the Vermont high school that the student attended prior to enrolling in the Academy.

(Added 1997, No. 138 (Adj. Sess.), § 8; amended 2001, No. 149 (Adj. Sess.), § 68, eff. June 27, 2002; 2003, No. 36, § 20; 2013, No. 77, § 9; 2013, No. 92 (Adj. Sess.), § 149, eff. Feb. 14, 2014.)

§ 1546 Comprehensive high schools

(a) In the sections referenced in this section, when applied to an independent comprehensive high school, the term “school board” or “school district” means “the school’s board of trustees.”

(b) A comprehensive high school shall charge and receive tuition pursuant to section 824 of this title. A comprehensive high school shall be a career technical center for the purposes of receiving funding for grants per full-time equivalent student under section 1561 of this title, for tryout classes under section 1562 of this title, and for reporting requirements under section 1568 of this title. Funds received under this section shall be used for support of career technical education programs within the comprehensive high school.

(c) Two or more comprehensive high schools for which the State Board has designated a service region shall be a career technical center for the purposes of accountability to the State Board under subchapter 2 of this chapter, responsibilities of the career technical center under subchapter 3 of this chapter, and receiving State financial assistance under subchapter 5 of this chapter, excluding the general State support grant under subsection 1561(b) of this title. The regional advisory board shall determine how funds received under subchapter 5 shall be distributed. A comprehensive high school aggrieved by a decision of the regional advisory board may appeal to the Secretary who, after opportunity for hearing, may affirm or modify the decision.

(Added 1999, No. 10, § 2; amended 2001, No. 63, § 164a, eff. July 1, 2002; 2013, No. 92 (Adj. Sess.), § 150, eff. Feb. 14, 2014; 2015, No. 23, § 35; 2021, No. 127 (Adj. Sess.), § 23, eff. July 1, 2024.)

Subchapter 4 Eligibility and Tuition

§ 1551 Secondary student eligibility

(a) A secondary student shall be enrolled in a program of part-time or full-time career technical education at a career technical center if he or she:

(1) applies for the program; and

(2) is accepted into the program by the career technical center.

(b) A secondary student who is eligible to enroll in a career technical center, but who resides in a sending school district, and who so applies, shall be enrolled for academic education in the high school associated with the career technical center if:

(1) the sending school district operates a high school but does not provide daily transportation at its expense to and from the career technical center; or

(2) the sending school district does not operate a high school.

(c) A secondary student who enrolls in a career technical center may enroll part-time in any school to which he or she would otherwise be entitled to enroll for full-time attendance.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 7; 1991, No. 204 (Adj. Sess.), § 7.)

§ 1551a Secondary students not enrolled in a high school

(a) Enrollment in a high school shall not be a precondition for enrollment in a career technical center for a student of any age without a diploma. For the purposes of this section, a general education development credential shall not be considered a high school diploma.

(b) A school district may establish reasonable procedures to require its resident students to discuss educational opportunities within career technical centers or the high school. Procedures shall not interfere with enrollment in a career technical center. If a student without a diploma who is not enrolled in a high school enrolls in a career technical center, within 10 days of enrollment, the career technical center shall notify the school district of residence of the enrollment.

(Added 1997, No. 138 (Adj. Sess.), § 9.)

§ 1552 Secondary student tuition

(a) Each career technical center shall establish a tuition charge for secondary career technical education. The amount shall reflect the actual cost, as defined by rule of the State Board, of attendance in the career technical courses offered by the center. The tuition charge shall be reduced proportionally for students enrolled in a part-time program.

(b) Secondary students are eligible for tuition assistance in career technical education provided in another state when the State Board determines that such career technical education can properly serve the needs of Vermont students.

(c) For students from a school district within Vermont, funds received under subsection 1561(c) of this title shall be subtracted when calculating the tuition charge. For students who are not Vermont residents, funds received under subsections 1561(b) and (c) of this title shall not be subtracted when calculating the tuition charge.

(d) The tuition charged to a school district within Vermont shall be based on the average of the district’s three prior years’ full-time equivalent student enrollment in the career technical center.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 8; 1991, No. 204 (Adj. Sess.), § 7; 1997, No. 138 (Adj. Sess.), §§ 10, 25, eff. July 1, 1999, eff. July 1, 1999; 2005, No. 54, § 11.)

§ 1553 Adult students

An adult student who is academically qualified for career technical education, who applies and for whom space is available shall be enrolled in a program of secondary career technical education at a career technical center at a rate not to exceed 40 percent of the announced tuition.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 9; 1991, No. 204 (Adj. Sess.), § 7; 1997, No. 138 (Adj. Sess.), § 11, eff. April 27, 1998.)

Subchapter 5 State Financial Assistance

§ 1561 Tuition reduction

(a) In this section:

(1) “Student” means a Vermont secondary student without a diploma regardless of age and regardless of whether the student is enrolled in a high school in Vermont.

(2) “Full-time equivalent student” means the average of a Vermont school district’s three prior years’ full-time equivalent enrollment of students in the career technical center.

(b) On behalf of a sending school district within Vermont, a career technical center shall receive from the Education Fund for each full-time equivalent student from the district 87 percent of the base education amount, and an equivalent amount shall be subtracted from the amount due to the sending district under section 4011 of this title. The amount sent to the career technical center and subtracted from the sending district shall be considered a revenue and an expenditure of the district and shall be reported as such in appropriate accounts and in the district’s annual budget.

(c) Annually, the General Assembly shall appropriate funds to pay for a supplemental assistance grant per full-time equivalent student. The amount of the grant shall be equal to 35 percent of the base education amount for that year.

(d) In any year following a year in which fall semester full-time equivalent enrollment of students at a career technical center increased by 20 percent or more over the previous fall semester, in addition to other aid, the career technical center shall receive an extra supplemental assistance grant equal to two-thirds of the 35 percent of the base education amount for that year, multiplied by the actual full-time equivalent enrollment increase. The next year, if the increase in fall semester full-time equivalent enrollment is less than 20 percent, in addition to other aid, the career technical center shall receive an extra supplemental assistance grant equal to one-third of the 35 percent of the base education amount for the year, multiplied by the actual full-time equivalent increase of the previous fall semester.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 46, § 3, eff. May 13, 1987; 1987, No. 238 (Adj. Sess.), §§ 10, 10a; 1991, No. 204 (Adj. Sess.), §§ 6, 7; 1997, No. 138 (Adj. Sess.), § 12, eff. July 1, 1999; 2001, No. 63, § 164b; 2003, No. 68, § 18, eff. June 18, 2003; 2003, No. 76 (Adj. Sess.), § 26, eff. Feb. 17, 2004; 2003, No. 122 (Adj. Sess.), § 188; 2005, No. 54, § 12; 2009, No. 44, §§ 18, 19, eff. May 21, 2009.)

§ 1562 Tryout classes

From the monies annually available for use in career technical education, the State Board may reimburse part of the program cost attributable to programs designed to assist students in deciding whether to enroll in career technical courses. As a condition of such assistance, the program shall demonstrate that it has taken steps to encourage each student to consider enrolling in courses not traditional for that student’s gender.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1991, No. 204 (Adj. Sess.), § 7; 2015, No. 23, § 36.)

§ 1563 Transportation assistance

(a) It is the policy of the General Assembly to encourage Vermont students to enroll in career technical education courses. In furtherance of that policy, transportation assistance is provided for in this section to facilitate the enrollment of Vermont students in career technical education programs.

(b) Transportation assistance shall be paid from the Education Fund to school districts that provide transportation to and from career technical education programs, regardless of whether the program is offered in a career technical center in the district’s designated service region or regions or is offered within the career technical center region at a location other than at a career technical center. Assistance shall be $1.50 per mile for actual number of miles traveled, in 1998 dollars adjusted annually by the annual price index for state and local government purchases of goods and services. Payments shall be made on or before December 10 and June 10. Requests submitted on or following May 15 shall be reimbursed in the next payment.

(c) The State Board may adopt rules necessary to implement this section.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1991, No. 204 (Adj. Sess.), § 7; 1997, No. 138 (Adj. Sess.), § 13, eff. July 1, 1999; 2007, No. 66, § 7.)

§ 1564 Repealed

[Repealed]

2009, No. 1 (Sp. Sess.), § E.511.1.

§ 1565 Salary assistance

(a) The State Board shall reimburse a school district operating a career technical center for a portion of its cost in paying the salary of the following persons:

(1) the director of career technical education;

(2) a person whose principal duty is to provide guidance services for career technical students;

(3) a person whose principal duty is to find job training opportunities for students during the time they are enrolled at the career technical center;

(4) an assistant director for adult education;

(5) an assistant director of career technical education, if the career technical center has full-time equivalent enrollment of at least 150 and the sending school population is at least 30 percent of the career technical center’s total full-time equivalent enrollment.

(b) Assistance under this section shall be determined by a formula and standards established by rule of the State Board. The formula and those standards:

(1) Shall provide different levels of support for different positions as follows:

(A) Directors and guidance coordinators’ salary assistance shall be 50 percent of the State average salary and benefits for each position, or 50 percent of the actual salary and benefits for each individual, whichever is less.

(B) Assistant directors, except for assistant directors for adult education, if the district is eligible, and co-op teachers’ salary assistance shall be 35 percent of the State average salary and benefits for each position or 35 percent of the actual salary and benefits for each individual, whichever is less.

(C) Salary assistance for assistant directors for adult education shall be up to 50 percent of the State average salary and benefits paid to full-time assistant directors for adult education; salary assistance shall be prorated for part-time assistant directors. Salary assistance under this subdivision (1)(C) shall not be paid from the Education Fund to the extent that the obligation is not fully funded from the General Fund. State General Fund assistance shall be divided so that each district employing an assistant director receives the same base amount of State salary support. The base support shall be pro-rated for part-time assistant directors. Payment under this subsection (b) does not preclude a district from using other State and federal grants to supplement the actual salaries and benefits of assistant directors for adult education.

(2) Shall require as a condition of assistance that the director:

(A) Is responsible for the overall administration of all career technical programs.

(B) Reports administratively to the superintendent of schools for the supervisory union of the school district that operates the center, or to a headmaster if the career technical center is not managed by a school board.

(Added 1983, No. 247 (Adj. Sess.), § 1; amended 1987, No. 238 (Adj. Sess.), § 12; 1991, No. 204 (Adj. Sess.), § 7; 2007, No. 46, § 5a, eff. May 23, 2007; 2007, No. 66, § 8; 2007, No. 192 (Adj. Sess.), § 6.004.1.)

§ 1566 Repealed

[Repealed]

2013, No. 56, § 15(3), eff. May 30, 2013.

§ 1567 Repealed

[Repealed]

2001, No. 63, § 164d, eff. July 1, 2002.

§ 1568 Reporting of information

(a) Annually, in accordance with a timeline, format, and process established by State Board rule, each CTE center shall report its costs and student enrollment, achievement, and performance measures to the Secretary. CTE center financial accounts shall be kept separately from those of the host high school in accordance with rules adopted by the State Board, which shall clearly delineate relevant costs and revenues.

(b) If a CTE center fails to file financial or student information required under this section within the timelines established by rule of the State Board, the Secretary may withhold funds due under this chapter and shall subtract $100.00 per business day from funds due the center under this chapter. The Secretary may waive the $100.00 penalty upon appeal by the center for good cause.

(Added 1997, No. 138 (Adj. Sess.), § 14; amended 1999, No. 10, § 4; 2001, No. 63, § 164c, eff. July 1, 2002; 2013, No. 92 (Adj. Sess.), § 151, eff. Feb. 14, 2014.)

Subchapter 5A Regional Career Technical Center School Districts

§ 1571 Definitions

In this subchapter:

(1) “Regional career technical center school district” and “regional CTE center school district” mean a district that maintains a regional career technical center under a governance structure approved by vote of the electorate pursuant to this subchapter.

(2) “School district” means a school district that maintains a high school.

(Added 2001, No. 33, § 3; amended 2013, No. 92 (Adj. Sess.), § 153, eff. Feb. 14, 2014.)

§ 1572 Formation of a planning committee

(a) Any two or more of the following may establish a committee to plan the formation of a regional CTE school district with an alternative governance structure for governance of the regional CTE center: either the school board of a school district that operates a regional CTE center or all the school boards that operate a comprehensive high school that have been designated as the regional CTE center; the majority of the school boards of the other school districts in the CTE center region; or an entity that performs workforce development activities pursuant to 10 V.S.A. § 542 in a CTE center region. The planning committee shall consist of representatives of the school district that operates a regional CTE center, the school districts that send students to the regional CTE center, regional employers, and residents of the CTE center region.

(b) The planning committee may determine that no change to the governance structure is needed, or it may prepare a report in the form of an agreement between the school districts that are located in the CTE center region. The report shall describe:

(1) The makeup of the governing board. At least 60 percent of the board members shall be elected by direct vote of the voters or chosen from member school district boards by the member school district boards, or a combination of the two. If the board is to have additional members, who may constitute up to 40 percent of the board, the additional members shall be appointed by the elected and chosen members from member school district boards for the purpose of acquiring expertise in areas they consider desirable. The appointed members may be selected from nominations submitted by the entity that performs workforce development activities pursuant to 10 V.S.A. § 542 or other workforce organizations, or may be chosen without nomination by an organization. Notwithstanding any provision of law to the contrary, a resident of an unorganized town, grant, or gore that sits within the regional CTE center school district who is otherwise eligible to vote under 17 V.S.A. § 2121 may vote for the board members and may be elected to or appointed as a member of the governing board.

(2) [Repealed.]

(3) Proposed bylaws.

(4) A plan for transition from the existing governance structure.

(5) The disposition of the existing CTE center land and facilities.

(6) How existing collective bargaining agreements and employee contracts will be addressed.

(7) Transportation to be provided.

(8) The term of office of the board members and other officers, how other officers are selected, and how board members will be replaced when a vacancy occurs.

(9) The date on which the proposal will be submitted to the voters and whether the votes will be commingled.

(10) A process for amending or dissolving the governance structure.

(11) Any other matter that the committee considers pertinent.

(Added 2001, No. 33, § 3; amended 2005, No. 32, § 3; 2005, No. 130 (Adj. Sess.), § 2; 2011, No. 129 (Adj. Sess.), § 17, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 154, eff. Feb. 14, 2014.)

§ 1573 Approval by State Board of Education

The planning committee shall transmit the report to the Secretary who, after consultation with the chair of the entity that performs workforce development activities pursuant to 10 V.S.A. § 542, shall submit the report with his or her recommendations to the State Board. The State Board, after notice to the planning committee and after giving the committee and other interested parties an opportunity to be heard, shall consider the report and the Secretary’s recommendations and decide whether the establishment of an alternative governance structure will be in the best interests of the students and the region. The State Board may request the Secretary or the planning committee, or both, to make further investigation and may consider any other information deemed by it to be pertinent. If, after due consideration and any further meetings as it may deem necessary, the State Board finds that establishment of the alternative governance structure is in the best interests of the students and the region involved, it shall approve the report submitted by the committee, together with any amendments, as a final report of the planning committee and shall give notice of its action to the committee. The chair of the planning committee shall file a copy of the final report with the clerk of each town school district, incorporated school district, unified union school district, and city school district in the region at least 20 days prior to the vote to adopt the alternative governance structure.

(Added 2001, No. 33, § 3; amended 2013, No. 92 (Adj. Sess.), § 155, eff. Feb. 14, 2014.)

§ 1574 Vote to adopt the alternative structure

Each town school district, incorporated school district, unified union school district, and city school district within the career technical center region shall vote on adoption of the alternative governance structure and formation of a regional career technical center school district. The vote shall be held on the date specified in the final report. The vote shall be by Australian ballot at separate school district meetings held on the same day and during the same hours. The polls shall remain open at least eight hours. Absentee voting as provided by 17 V.S.A. §§ 2531-2550 shall be permitted. Ballots may be commingled. The meetings shall be warned as a special meeting of each school district voting on the proposal.

(Added 2001, No. 33, § 3.)

§ 1575 Certification

Within 10 days of any vote held in accordance with this subchapter, the clerks of the participating school districts shall certify the results of the vote to the Secretary of Education, or, if the ballots are to be commingled, each municipal clerk shall appoint a member of the Board of Civil Authority to transport the uncounted ballots to a predetermined location where the appointed members of each participating school district shall count the commingled ballots. If a majority of the voters vote to approve the formation of the governance system and creation of a regional career technical center district, the Secretary shall declare the existing governance structure of the career technical center to be void, the region to be designated a career technical center school district, and the new governance system to be authorized, all as of the date specified in the application, and shall certify the declaration to the Secretary of State.

(Added 2001, No. 33, § 3; amended 2013, No. 92 (Adj. Sess.), § 156, eff. Feb. 14, 2014.)

§ 1576 Effect of certification; application of other laws

(a) Upon certification under section 1575 of this title, the career technical center region shall become a public school district and shall constitute a body politic and corporate, with all the rights and responsibilities pertaining to a public school district, as specified in this subchapter, and as specified in the approval granted by the State Board. The career technical center school district shall also be a supervisory district for the purpose of providing the planning and administrative functions of a supervisory union for the programs offered.

(b) The provisions of this subchapter are intended to be in addition to the general provisions of law pertaining to schools and school districts, including any laws relating to school choice, and not a limitation upon them, and, in the event there is no provision in this subchapter to cover a situation and the situation is covered by the general school law or municipal law, the provisions of the general school law or municipal law apply.

(c) A career technical center governed under a structure adopted under this subchapter, except with respect to inconsistent provisions related to methods of governance, shall be subject to all other provisions of this chapter and any other State or federal laws related to the operations of career technical centers and provision of secondary and adult technical education.

(Added 2001, No. 33, § 3; amended 2019, No. 131 (Adj. Sess.), § 77.)

§ 1577 Duties and authority of Alternative Governance Board

The governance board of a CTE center authorized under this subchapter, in addition to other duties and authority specifically assigned by law to the governing authority of a CTE center, shall have the following duties and authority:

(1) To determine the educational policies of the career technical center. Policies shall be of general application to the center and shall be in writing, codified, and made available to the public. Board policies shall be adopted at regular or special meetings. A board shall give public notice of its intent to adopt a board policy, stating the substance of the proposed policy, at least ten days prior to its adoption. A board may also approve or disapprove rules and regulations proposed by the director for the conduct and management of the center.

(2) To take any action required for the sound administration of the center. The Secretary of Education, with the advice of the Attorney General, upon application by a board, shall decide whether any action contemplated or taken under this subdivision is required for the sound administration of the center and is consistent with law. The Secretary’s decision shall be final.

(3) To have the possession, care, control, and management of the property of the center, subject to the provisions of any agreement between the former board of the center and the alternative governing board.

(4) To keep the center buildings and grounds in good repair, suitably equipped, insured, and in safe and sanitary condition at all times. The center shall regulate or prohibit firearms or other dangerous or deadly weapons on school premises. A board’s policies in this regard shall be, at minimum, consistent with section 1166 of this title and 13 V.S.A. § 4004, relating to a student who brings a firearm to or possesses a firearm at school.

(5) To lease or purchase real and personal property, and to sell, relocate, or discontinue use of real and personal property, subject to the terms and conditions of the approval granted to it by the State Board.

(6) To establish and maintain a system for receipt, deposit, disbursement, accounting, control, and reporting procedures that meets the criteria established by the State Board pursuant to subdivision 164(15) of this title and that ensures all payments are lawful and in accordance with the budget adopted pursuant to terms approved by the State Board. The Board may authorize a subcommittee, a superintendent of schools, or a designated employee of the Board to examine claims against the district for center expenses and draw orders for such as shall be allowed by it payable to the party entitled to the payment. Such orders shall state definitely the purpose for which they are drawn and shall serve as full authority to the treasurer to make such payments. It shall be lawful for a board to submit to its treasurer a certified copy of those portions of the board minutes, properly signed by the clerk and chair, or a majority of the board, showing to whom, and for what purpose, each payment is to be made by the treasurer, and the certified copy shall serve as full authority to the treasurer to make the approved payments.

(7) To establish, with the advice and consent of the Auditor of Accounts and the Secretary of Education, a system of accounts for the proper control and reporting of center finances and for stating the annual financial condition of the center.

(8) To sue and be sued.

(9) To execute contracts on behalf of the center, including contracts providing for binding arbitration, by its chair or any person designated whose appointment is recorded in the minutes of the board.

(10) [Repealed.]

(11) To employ persons to carry out the work of the center and dismiss any employee when necessary. The board shall consider the recommendation of the director or superintendent before employing or dismissing any person.

(12) To provide, at the expense of the center, subject to the approval of the director or superintendent, all textbooks, learning materials, equipment, and supplies.

(13) To employ a public accountant every year to audit the financial statements of the regional career technical center school district.

(14) To establish policies and procedures designed to avoid the appearance of board member conflict of interest.

(15) To borrow money by issuance of bonds or notes, not in excess of anticipated revenue for the school year.

(16) To apply for grants and to accept and expend grants and gifts.

(17) To present informational materials, at the expense of the center, to the electorate on any matter to be voted; provided, however, that the materials shall be limited to those that are reasonably designed to inform, educate, and explain to the electorate the board’s position on the matter.

(Added 2001, No. 33, § 3; amended 2003, No. 107 (Adj. Sess.), § 9; 2005, No. 130 (Adj. Sess.), § 2; 2005, No. 182 (Adj. Sess.), § 6; 2013, No. 92 (Adj. Sess.), § 157, eff. Feb. 14, 2014; 2019, No. 131 (Adj. Sess.), § 78; 2021, No. 20, § 61.)

§ 1578 Regional career technical center school district meetings

The checklist for a regional career technical center school district and records of proceedings shall be made and maintained in the same manner as those functions are carried out in a union school district under sections 706u and 706v of this title.

(Added 2001, No. 33, § 3.)

§ 1578a Establishment of a regional career technical center budget

(a) The board of directors of the regional career technical center school district shall at each annual meeting present an estimate of the expenses for the ensuing year, and the district shall appropriate that sum that it deems necessary for the expenses, together with the amount required to pay any balance left unpaid from the preceding year, expressing the sum in dollars in its vote. If a budget for the operation of the district is not approved, a subsequent meeting or meetings shall be warned.

(b) If a budget has not been approved on or before June 30 of any year, the school board may borrow funds pursuant to the authority granted under section 566 of this title.

(c) Following adoption of a budget, the board shall calculate each member district’s share pursuant to section 1552 of this title. Upon receipt of the notice of the amount, the share shall become a legal obligation of the member district without need for further vote of the member district electorate and shall be included in the member district’s education spending amount.

(Added 2005, No. 130 (Adj. Sess.), § 1.)

§ 1579 Incurring debt

(a) If authorized by a majority of the qualified voters voting on the question in accordance with this section, a regional career technical center school district may incur indebtedness for improvements or the acquisition of capital assets for the purposes for which the district is established as provided in this chapter.

(b) Each town school district, incorporated school district, unified union school district, and city school district within the regional career technical center school district shall vote on a decision to incur indebtedness for improvements as provided by 24 V.S.A. chapter 53, subchapter 1. The vote shall be determined by Australian ballot or voting machine on the same day and during the same hours at each regular polling place in each town school district, incorporated school district, unified union school district, and city school district within the regional career technical center school district. Absentee voting in accordance with 17 V.S.A. chapter 51, subchapter 6 shall be permitted. The Board of Civil Authority of each town within the regional career technical center school district shall be responsible for determining the eligibility of persons to vote, the supervision of the election, and the transportation of ballots in its district to a central point designated by the governing board of the regional career technical center school district. The ballots shall be commingled. Counting of ballots by representatives of the Boards of Civil Authority of the towns in the regional career technical center school district shall be supervised by the regional career technical center school district clerk or his or her designee.

(c) Obligations incurred under 24 V.S.A. chapter 53, subchapter 1 shall be the joint and several obligations of the regional career technical center school district and of each of the town school districts, incorporated school districts, the member towns of unified union school districts, and city school districts within the career technical center region. Any joint or several liability incurred by a town school district, incorporated school district, the member towns of a unified union school district, or city school district within the career technical center region under the provisions of this subchapter shall not be considered in determining its debt limit for its own separate purposes.

(Added 2001, No. 33, § 3.)

Subchapter 6 Postsecondary Career Technical Education

§ 1591 Governance

The governing body for the provision of postsecondary career technical education shall be the Board of Trustees of the Vermont State Colleges pursuant to chapter 72 of this title. However, nothing in this chapter shall be interpreted to diminish or interfere with the rights and responsibilities of students in postsecondary degree-granting programs or the public or private institutions offering such programs.

(Added 1991, No. 204 (Adj. Sess.), § 5.)

§ 1592 Powers and responsibilities of Board of Trustees

With respect to the provision of postsecondary career technical education programs, in addition to those powers and responsibilities set forth in chapter 72 of this title, the Vermont State Colleges Board of Trustees shall:

(1) provide on a statewide basis, subject to the payment of fees by enrolled students, postsecondary career technical education programs and establish policies and determine curriculum for the provision of such education;

(2) coordinate such programs with secondary regional career technical education centers and, to the maximum extent possible, contract with such centers for the use of the center’s facilities;

(3) coordinate such programs with other employment and training programs such as those offered by the Department of Employment and Training, the Department of Labor, the Department for Children and Families, the Agency of Commerce and Community Development, independent colleges, and the Vermont Student Assistance Corporation; and

(4) possess all other necessary and implied powers to carry out such responsibilities.

(Added 1991, No. 204 (Adj. Sess.), § 5; amended 1995, No. 190 (Adj. Sess.), § 1(a); 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 174 (Adj. Sess.), § 34.)

§ 1593 Secondary students in postsecondary career technical education programs

A secondary career technical student may be enrolled in postsecondary career technical education courses at the expense of the student’s school district of residence if the enrollment is accepted by the postsecondary career institution and approved by the district of residence as being in the best interests of the student and if the enrollment is approved for credit toward high school graduation requirements. The school board awarding graduation credits shall consider the recommendation of the regional advisory board, regional technical center school district board, or any other authorized alternate governing board and shall provide an opportunity for the secondary student also to receive postsecondary credit.

(Added 1991, No. 204 (Adj. Sess.), § 5; amended 2005, No. 54, § 13.)

Chapter 39 Vermont Student Apprenticeship Program

§ 1601 Definitions

As used in this chapter:

(1) “Articulation agreement” means a written agreement between a secondary school and a postsecondary institution or registered apprenticeship program specifying the responsibilities for each party to the agreement with respect to student apprentices working towards completion of a registered apprenticeship program or a postsecondary degree. The agreement may include acceptance of a student apprentice into a registered apprenticeship program or postsecondary school pending completion of a student apprenticeship program.

(2) “Industry competency standards” mean performance criteria developed jointly by educators and business representatives and adopted by the State Board that define skills and knowledge that are needed in the workplace.

(3) “Registered apprenticeship” means an apprenticeship or on the job training program registered by the State Apprenticeship Council under 21 V.S.A. § 1102 in which a person enters into a contract to receive instruction and occupational preparation in a trade, craft, or business from an employer and is provided wages in consideration for services.

(4) “Student apprentice” means an individual, enrolled in a school, who is participating in a student apprenticeship program approved by the regional advisory board and who is employed in accordance with the federal Fair Labor Standards Act.

(5) “Student apprentice coordinator” means a licensed professional educator whom the State Board of Education finds qualified to plan, implement and evaluate a student apprenticeship program.

(6) “Student apprenticeship program” means a skill-based education program that coordinates and integrates classroom instruction with a structured, work-based learning experience. An individual participating in a student apprenticeship program receives academic instruction and training in a skilled occupation that prepares him or her for postsecondary education, advanced training, or direct employment in a position higher than entry level.

(7) “Worksite mentors” mean individuals employed by business and industry who have demonstrated mastery of their craft or profession, who have been prepared to carry out the role of student advisor, and who provide worksite learning experiences to student apprentices.

(8) “Worksite training” means the part of the apprenticeship program conducted at the place of business or industry.

(Added 1993, No. 155 (Adj. Sess.), § 1, eff. May 17, 1994; amended 2013, No. 92 (Adj. Sess.), § 159, eff. Feb. 14, 2014.)

§ 1602 School board responsibilities

(a) A school board or its equivalent in any independent secondary school may establish and operate a student apprenticeship program under this chapter when the school board has received approval from the regional advisory board.

(b) Each school board that runs a student apprenticeship program shall:

(1) Employ a student apprenticeship coordinator who shall:

(A) Find student apprenticeship opportunities for students.

(B) Develop working relationships between the school and business community.

(C) Select safe and appropriate worksites for student apprentices.

(D) Work with businesses to identify worksite mentors.

(E) Select, adapt and use curricula to meet the academic and career technical education needs of student apprentices.

(F) Quarterly, review each student’s performance and the suitability of the program to the student’s needs. Report the results of the review to the regional advisory board pursuant to section 1605 of this title.

(G) Annually, report to the regional advisory board concerning the effectiveness of the program pursuant to section 1605 of this title.

(2) Ensure preparation of individuals employed by business to be worksite mentors according to guidelines established by the State Board. Each participating business shall support the preparation of the worksite mentor as a condition to participating in the student apprenticeship program.

(3) Collaborate with and integrate the program with Vermont’s school-to-work system.

(Added 1993, No. 155 (Adj. Sess.), § 1, eff. May 17, 1994.)

§ 1603 Elements of the program

(a) An eligible student may apply to enter the student apprenticeship program upon successful completion of grade 10 or its equivalent and meeting entrance requirements established by the State Board of Education.

(b) A program may be up to four years in length and shall require both academic study and work experience each program year. The program shall emphasize work-based learning, applied academics, team teaching, and other strategies that will enable the student apprentice to enter a postsecondary institution, a registered apprenticeship program, or the workforce in a position above entry level.

(c) The school board, working with the student and the employer, shall prepare an apprenticeship agreement. The agreement shall describe the responsibilities of each party, including program requirements and remuneration to the student by the employer as determined jointly by the student, apprenticeship coordinator, and worksite mentor and shall be valid when signed by each party.

(d) When an articulation agreement is requested and feasible, the school board shall negotiate one for apprentices working towards completion of registered apprenticeship or postsecondary degree requirements.

(e) The student apprenticeship coordinator shall assist the student in maintaining a portfolio that shall include a log of work activities and the results of assessments conducted periodically during the program.

(f) A student apprentice who successfully completes a student apprenticeship program shall receive an industry competency certificate issued by the State Board of Education. In order to earn an industry competency certificate, a student apprentice shall demonstrate mastery of industry competency standards and shall complete academic requirements for graduation.

(g) A record of mastery of skills attained through the apprenticeship program and high school graduation credit shall be recorded in the student’s school record.

(Added 1993, No. 155 (Adj. Sess.), § 1, eff. May 17, 1994.)

§ 1604 State Board responsibilities

The State Board of Education shall:

(1) Establish standards of operation for a student apprenticeship program. Standards shall ensure that a program prepares students to meet labor market standards and needs, and that a student shall receive relevant and quality work experience.

(2) Establish standards for entrance into a student apprenticeship program.

(3) Establish a process for termination of a student from a student apprenticeship program.

(4) In collaboration with related business or trade organizations, establish academic and occupation-specific industry competency standards for each occupation-specific student apprenticeship program offered in the State. The standards shall be those to be met in order to earn an industry competency certificate.

(5) Establish guidelines for preparation of worksite mentors.

(6) Certify those who graduate from a student apprenticeship program as meeting industry competency standards for entrance into the trade or profession the student has studied. The State Board shall maintain a record of certificates issued under this subdivision.

(Added 1993, No. 155 (Adj. Sess.), § 1, eff. May 17, 1994.)

§ 1605 Regional advisory board responsibilities

Each regional advisory board shall:

(1) Based on standards of operation established by the State Board of Education, approve or disapprove an application from a school board to establish and operate a student apprenticeship program. The Board may rescind approval if the program is not meeting the standards.

(2) Based on standards and processes established by the State Board, determine which applicants shall be accepted into the student apprenticeship programs in its region and determine whether a student should be terminated from a program. Decisions regarding acceptance into a program shall, in part, be based on submission of an acceptable career preparation plan developed by the applicant with the help of a guidance counselor. Decisions regarding termination shall be made with the advice of the student apprenticeship coordinator.

(3) Approve or disapprove proposed worksites and worksite mentors for student apprenticeship programs in its region.

(4) At least quarterly, request information about each student from each student apprenticeship coordinator. The coordinator shall provide information concerning student performance, basic and advanced skill attainment, suitability of the worksite, and worksite mentor effectiveness.

(5) At least annually, request program information from each student apprenticeship coordinator that will enable the Board to judge the overall effectiveness of each student apprenticeship program in its region. The coordinator shall provide information concerning program participation, program completion by students, business and industry participation, quality of instruction, success at combining classroom and worksite instruction, career placement, and employer satisfaction.

(Added 1993, No. 155 (Adj. Sess.), § 1, eff. May 17, 1994.)

Chapter 41 Public High School Choice

§ 1621 Repealed

[Repealed]

2011, No. 129 (Adj. Sess.), § 36, eff. July 1, 2013.

§ 1622 Repealed

[Repealed]

2011, No. 129 (Adj. Sess.), § 36, eff. July 1, 2013.

Chapter 42 Student Rights

§ 1623 Freedom of expression

(a)(1) The General Assembly finds that freedom of expression and freedom of the press are fundamental principles in our democratic society granted to every citizen of the nation by the First Amendment to the U.S. Constitution and to every resident of this State by Chapter I, Article 13 of the Vermont Constitution.

(2) These freedoms provide all citizens, including students, with the right to engage in robust and uninhibited discussion of issues.

(3) The General Assembly intends to ensure free speech and free press protections for both public school students and students at public institutions of higher education in this State in order to encourage students to become educated, informed, and responsible members of society.

(b) As used in this chapter:

(1) “Media adviser” means an individual employed, appointed, or designated by a school or its governing body to supervise or provide instruction relating to school-sponsored media.

(2) “School” means a public school operating in the State.

(3) “School-sponsored media” means any material that is prepared, written, published, or broadcast as part of a school-supported program or activity by a student journalist and is distributed or generally made available as part of a school-supported program or activity to an audience beyond the classroom in which the material is produced.

(4) “Student journalist” means a student enrolled at a school who gathers, compiles, writes, edits, photographs, records, or prepares information for dissemination in school-sponsored media.

(5) “Student supervisor” is a student who is responsible for editing school-sponsored media.

(c)(1) Subject to subsection (e) of this section, a student journalist may exercise freedom of speech and freedom of the press in school-sponsored media.

(2) Subdivision (1) of this subsection shall not be construed to be limited by the fact that the school-sponsored media are:

(A) supported financially by a school or its governing body, or by use of facilities owned by the school; or

(B) produced in conjunction with a class in which the student journalist is enrolled.

(d)(1) Subject to subsection (e) of this section, the student supervisors of school-sponsored media are responsible for determining the content of their respective media.

(2) Subject to subdivision (1) of this subsection, a media adviser may teach professional standards of English and journalism to student journalists.

(e) This section shall not be construed to authorize or protect content of school-sponsored media that:

(1) is libelous or slanderous;

(2) constitutes an unwarranted invasion of privacy;

(3) may be defined as obscene, gratuitously profane, threatening, or intimidating;

(4) may be defined as harassment, hazing, or bullying under section 11 of this title;

(5) violates federal or State law; or

(6) creates the imminent danger of materially or substantially disrupting the ability of the school to perform its educational mission.

(f) A school is prohibited from subjecting school-sponsored media, other than that listed in subsection (e) of this section, to prior restraint. A school may restrain the distribution of content in student media described in subsection (e), provided that the school’s administration shall have the burden of providing lawful justification without undue delay. Content shall not be suppressed solely because it involves political or controversial subject matter or is critical of the school or its administration.

(g) A student journalist may not be disciplined for acting in accordance with this section.

(h) A media adviser may not be dismissed, suspended, disciplined, reassigned, or transferred for:

(1) taking reasonable and appropriate action to protect a student journalist for engaging in conduct protected by this section; or

(2) refusing to infringe on conduct that is protected by this section, by the first amendment to the U.S. Constitution, or by the Vermont Constitution.

(i) Each school or its governing body shall adopt a written policy consistent with the provisions of this section.

(j) No expression made by students in school-sponsored media shall be deemed to be an expression of school policy.

(Added 2017, No. 49, § 46, eff. May 23, 2017; amended 2019, No. 131 (Adj. Sess.), § 79.)

§ 1624 School library material selection policy

(a) Each school board and each approved independent school shall develop, adopt, ensure the enforcement of, and make available in the manner described under subdivision 563(1) of this title a library material selection policy. Each superintendent and head of school of an approved independent school shall develop and implement procedures for the reconsideration and retention of materials. The policy and procedures shall affirm the importance of intellectual freedom and be guided by the First Amendment to the U.S. Constitution, the Civil Rights Act of 1964, Vermont laws prohibiting discrimination in places of public accommodation, the 2004 American Library Association’s Freedom to Read Statement, the 2024 Vermont Freedom to Read Statement, and reflect Vermont’s diverse people and history, including diversity of race, ethnicity, sex, gender identity, sexual orientation, disability status, religion, and political beliefs.

(b) In order to ensure a student’s First Amendment rights are protected and all students’ identities are affirmed and dignity respected, the policy and procedures required under subsection (a) of this section shall prohibit the removal of school library materials for the following reasons:

(1) partisan approval or disapproval;

(2) the author’s race, nationality, gender identity, sexual orientation, political views, or religious views;

(3) school board members’ or members of the public’s discomfort, personal morality, political views, or religious views;

(4) the author’s point of view concerning the problems and issues of our time, whether international, national, or local;

(5) the race, nationality, gender identity, sexual orientation, political views, or religious views of the protagonist or other characters; or

(6) content related to sexual health that addresses physical, mental, emotional, or social dimensions of human sexuality, including puberty, sex, and relationships.

(c) The policy and procedures required under subsection (a) of this section shall ensure that school library staff are responsible for curating and developing collections that provide students with access to a wide array of materials that are relevant to students’ research, independent reading interests, and educational needs, as well as ensuring such materials are tailored to the cognitive and emotional levels of the children served by the school.

(Added 2023, No. 150 (Adj. Sess.), § 7a, eff. July 1, 2025; amended 2025, No. 72, § 15, eff. June 27, 2025.)

Chapter 51 Professional Educators

§ 1691 Purpose

The purpose of this chapter is to establish a board of professional educators to oversee the training, licensing, and professional standards of teachers and administrators and to establish hearing panels to determine compliance with those standards to help ensure high caliber professionals and high quality public educational programs for Vermont students.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007.)

§ 1691a Definitions

As used in this chapter:

(1) “Administrator” means an individual licensed under this chapter the majority of whose employed time in a public school, school district, supervisory union, or board of cooperative education services is assigned to developing and managing school curriculum, evaluating and disciplining personnel, or supervising and managing a public school system or public school program.

(2) “Applicant” means an individual applying for a license.

(3) “Educator” means any teacher or administrator requiring a license under this chapter.

(4) “Endorsement” means the grade level and field in which an educator is authorized to serve. A license shall bear one or more endorsements.

(5) “Hearing panel” means the persons assigned in individual cases to find facts, reach conclusions of law, and make decisions regarding compliance with standards for obtaining, retaining, and renewing licenses.

(6) “License” means a license to engage in teaching or school administration, as the context requires, in the State and includes, unless the context requires otherwise, the endorsements the licensee has applied for or possesses. “Licensee” means an individual licensed under this chapter.

(7) “Licensing action” means action that suspends, revokes, limits, or conditions licensure or certification in any way and includes warnings, reprimands, probation, and administrative penalties.

(8) “Office” means the office within the Agency responsible for professional standards and educator licensing.

(9) “Standards Board” means the Vermont Standards Board for Professional Educators established under section 1693 of this title.

(10) “Teacher” means an individual licensed under this chapter the majority of whose employed time in a public school distric, supervisory union, or board of cooperative education services is assigned to furnish to students direct instructional or other educational services, as defined by rule of the Standards Board, or who is otherwise subject to licensing as determined by the Standards Board.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 160, eff. Feb. 14, 2014; 2023, No. 168 (Adj. Sess.), § 6, eff. July 1, 2024.)

§ 1692 Requirement as to license

Except for a substitute teacher in accordance with rules adopted by the Standards Board, a person shall not be employed as a teacher or administrator in a public school without having a license then in force.

(Amended 1989, No. 118, § 3; 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007.)

§ 1692 Repealed

[Repealed]

2005, No. 214, § 13(d).

§§ 1693, 1694 Repealed

[Repealed]

1977, No. 33, § 6.

§ 1693 Standards Board for Professional Educators

(a) Board creation. There is hereby established the Vermont Standards Board for Professional Educators comprising 13 members as follows: seven teachers; two administrators, one of whom shall be a school superintendent; one public member; one school board member; one representative of educator preparation programs from a public institution of higher education; and one representative of educator preparation programs from a private institution of higher education.

(b) Appointment and qualifications. All members of the Standards Board shall be appointed by the Governor for terms of three years, which shall begin July 1 of the year of appointment. Prior to appointing a member, the Governor shall consult with the State Board of Education and, as appropriate, the Vermont National Education Association, the Vermont School Boards Association, the Vermont Principals Association, the Vermont Superintendents Association, the Vermont State Colleges, the University of Vermont, and the Association of Vermont Independent Colleges. No person shall be eligible for more than one sequential reappointment. The Governor shall appoint a replacement to fill any vacancy on the Standards Board for the remainder of the term. The Governor shall ensure appointments are consistent with the following requirements:

(1) Each member of the Standards Board shall be a citizen of the United States and a resident of Vermont.

(2) The educator members shall be generally representative of elementary and secondary schools and of programs of study taught in Vermont public schools and of administrative positions in Vermont public schools. Teacher members shall hold a license and have at least five years’ experience in public school teaching, at least three of which shall have been within the five years preceding appointment. Administrator members shall hold a license and be endorsed as an administrator and have at least five years’ experience in public school administration, at least three of which shall have been within the five years preceding appointment.

(3) The school board member shall be a current school district board member or have served on a school district board at some period during the three years prior to appointment.

(4) The public member shall not be a member of the State Board of Education or an employee of any school and shall not derive primary livelihood in the field of public or independent education at any level of responsibility.

(c) Standards Board officers; meetings. The Standards Board shall elect from its members a chair, vice chair, and secretary who shall serve for one year and until their successors are elected and seated. The Board shall meet at the request of the Chair or at such other times and places as the Board may determine. Seven members of the Board shall constitute a quorum for the transaction of business.

(d) Compensation. The Agency shall compensate Standards Board members for the performance of their duties and reimburse them for their actual and necessary expenses in accordance with 32 V.S.A. § 1010.

(e) Administration. The Standards Board shall be attached for administrative purposes to the office. With respect to the Standards Board, the Secretary shall:

(1) With the advice of the Standards Board, employ a director, prepare an annual budget, and administer money appropriated to the Standards Board by the General Assembly. The budget of the Standards Board shall be part of the budget of the Agency.

(2) Employ administrative staff of the office.

(3) Incur such other expenses as the Secretary determines are necessary.

(4) Act as custodian of the records of the Standards.

(5) Annually, conduct a training for members of the Standards Board and the hearing panels established in this chapter, which shall include workshops regarding the powers and duties of the Standards Board and the panels and an opportunity for the Standards Board and hearing panel members to discuss the practical application of standards in quasi-judicial proceedings.

(Amended 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; 2013, No. 92 (Adj. Sess.), § 161, eff. Feb. 14, 2014; 2017, No. 49, § 40, eff. May 23, 2017; 2021, No. 20, § 62.)

§ 1694 Powers and duties of the Standards Board for Professional Educators

In addition to any other powers and duties prescribed by law or incidental or necessary to the exercise of such lawful powers and duties, the Standards Board shall:

(1)(A) Adopt rules pursuant to 3 V.S.A. chapter 25 with respect to the licensing of teachers and administrators, and of speech-language pathologists and audiologists as provided in 26 V.S.A. chapter 87.

(B) Not less than once every five years, review its continuing education or other continuing competency requirements for professional educators. The review results shall be in writing and address the following:

(i) the renewal requirements for licensure and endorsements;

(ii) the renewal requirements in other jurisdictions, particularly in the Northeast region;

(iii) the cost of the renewal requirements for the licensees; and

(iv) an analysis of the utility and effectiveness of the renewal requirements with respect to the purpose set forth in section 1691 of this chapter.

(2) Establish standards for educator preparation programs in Vermont and approve those that meet the standards so that a person graduating from an approved program shall be eligible for a license to engage in teaching or school administration in accordance with Standards Board rules. The Standards Board may accept accreditation of an educator preparation program in Vermont or another state from a national accreditation entity as sufficient for approval.

(A) Each Vermont educator preparation program seeking Results Oriented Program Approval (ROPA) shall be subject to the following fees.

(i) Authority to recommend licensure. Colleges, universities, and other educator preparation programs that have the authority to recommend applicants for licensure shall pay an annual fee of $1,000.00.

(ii) New program initiation. Colleges, universities, and other educator preparation programs that do not have existing approved ROPA programs, or that wish to add an additional program approved by ROPA, shall pay a fee of $2,000.00 for the initial program application.

(iii) Program review. Colleges, universities, and other educator preparation programs with approved ROPA programs shall pay an annual fee of $25.00 for each applicant who completes a program.

(iv) Two-year report. Colleges, universities, and other educator preparation programs shall pay a fee of $500.00 for the review of the two-year report that they are required to submit following their program review. Programs reviewed to be exemplary by the Vermont Standards Board for Professional Educators may have the requirement of the two-year report waived; in these cases, programs shall not be subject to the two-year report fee.

(v) Visit. Colleges, universities, and other educator preparation programs shall pay a fee of $1,500.00 for the travel, lodging, and meal expenses of the review team. If a program chooses to have a review team chair travel from outside the State under Vermont State Board of Professional Educators (VSBPE) Policy N2, the program is responsible for all additional expenses in excess of $1,500.00.

(B) Fees collected under this section shall be credited to special funds established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and shall be available to the Agency to offset the costs of providing those services.

(3)(A) Establish standards, including endorsements, according to which individuals may obtain a license or have one renewed or reinstated.

(B) Adopt rules for an application process to provide licensure to applicants who can demonstrate three years or more of licensed practice in good standing in another jurisdiction within the United States, regardless of whether that jurisdiction has licensing requirements substantially similar to those of this State. The Standards Board may, by rule, exclude an endorsement from the process required by this subdivision (B) if it finds that licensure through this process for the endorsement does not fulfill the goals set forth in section 1691 of this chapter.

(4) Oversee and monitor the application and licensing process administered by the office. The Standards Board may, by adoption of a written policy that is posted on the Agency’s website, allow specific military credentials to satisfy one or more requirements for licensure.

(5) Develop a code of professional ethics and act as advisor to professional educators regarding its interpretation.

(Amended 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; 2015, No. 149 (Adj. Sess.), § 47; 2019, No. 152 (Adj. Sess.), § 7, eff. April 1, 2021.)

§ 1695 Review of licensing standards

Prior to the prefiling by the Standards Board of a licensing standard or procedure proposed for rulemaking pursuant to 3 V.S.A. § 820, the Secretary may object to it before the State Board on the grounds that it would have significant adverse financial or operational impact on the public school system. If the State Board agrees, it may remand the proposed rule to the Standards Board for further deliberations consistent with its written decision. The Secretary may also object on the same grounds to a substantive change to a proposed rule, once initiated, before a final proposal is filed pursuant to 3 V.S.A. § 841.

(Amended 1989, No. 118, § 3; 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; 2013, No. 92 (Adj. Sess.), § 162, eff. Feb. 14, 2014.)

§§ 1695, 1696 [Reserved for future use.]
§ 1695a Pre-application criminal background determination; uniform process for foreign credential verification

(a) Pre-application criminal background determination. An individual may request a pre-application determination of the individual’s criminal background. The pre-application determination shall adhere to the process set forth in section 254 of this title. Results of a pre-application determination shall not be binding on the Secretary in a future application.

(1) The individual’s request for a pre-application determination shall include documentation related to criminal conviction or substantiation, evidence of rehabilitation or mitigation, and identification of which license and any endorsement the individual will seek.

(2) The individual shall submit this request on a form provided by the Secretary, accompanied by the pre-application criminal background determination fee set forth in section 1697 of this chapter. If the individual thereafter applies for licensure, this pre-application fee shall be deducted from that license application fee.

(3) The Secretary shall:

(A) process a request within 30 days of receiving a complete request;

(B) assess the nature of any underlying convictions and substantiations, the nexus to the license and endorsement sought, and the provided evidence of rehabilitation or mitigation; and

(C) respond to the individual’s request in writing, stating whether the individual may seek licensure.

(b) Uniform process for foreign credential verification.

(1) The Standards Board shall adopt rules in consultation with the Secretary that prescribe a process for the Secretary to assess the equivalence of an applicant’s professional credentials earned outside the United States as compared to State licensing requirements for professional educators.

(2) Any determination of equivalence by the Secretary under this subsection (b) shall be in consultation with the Standards Board, recorded in the applicant’s licensing file, and binding upon the Secretary.

(3) In administering this subsection, the Secretary may rely upon third-party credential verification services. The cost of such services shall be paid by the applicant.

(4) The provisions relating to preliminary license denials set forth in subsection 1704(a) of this chapter shall apply to a license application that is preliminarily denied for nonequivalence under this subsection.

(Added 2019, No. 152 (Adj. Sess.), § 8, eff. April 1, 2021.)

§ 1696 Licensing

(a) Qualifications of applicants. An applicant shall submit to the Secretary evidence satisfactory to the Secretary that the applicant either has completed all requirements of an approved educator preparation program or has otherwise acquired the knowledge and skills required for a license through coursework and experiences apart from an approved educator preparation program.

(b) License by reciprocity.

(1) By rule, the Standards Board shall establish standards according to which an applicant who meets the licensing standards of another state with standards substantially similar to Vermont’s may be accorded a license in this State, provided the other state recognizes, by substantially reciprocal regulations or laws, licenses issued in this State.

(2) Eligibility for licensure under this subsection shall be in addition to eligibility for licensure under subdivision 1694(3)(B) of this chapter.

(c) Temporary licenses. By rule, the Standards Board may establish standards, if any, by which an applicant who otherwise does not meet the standards for a license may obtain, for a period not to exceed two years, a temporary license.

(d) Junior Reserve Officer Training Corps instructors. The Board shall accept certification of a Junior Reserve Officer Training Corps instructor by the federal Department of Defense as qualification for a license to provide Junior Reserve Officer Training Corps instruction to a student enrolled in a Junior Reserve Officer Training Corps program.

(e) Denial of license. The Secretary may deny a license for:

(1) failure to meet the conditions for issuance of a license or endorsement or renewal or reinstatement thereof; or

(2) failure of a licensee to demonstrate the competencies specified in the rules of the Standards Board.

(f) Appeal. An applicant aggrieved by a decision of the Secretary regarding the issuance or renewal of a license may appeal that decision by notifying the Secretary in writing within 30 days of receiving the decision. The Secretary shall transmit notice of the appeal to the administrative officer for hearing panels to initiate the appeal process set forth in section 1700 of this title.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 163, eff. Feb. 14, 2014; 2019, No. 152 (Adj. Sess.), § 9, eff. April 1, 2021.)

§ 1697 Fees

(a) Each individual applicant and licensee shall be subject to the following fees:

(1) Processing of application $50.00 per application

(2) Issuance of Level I license $50.00 per year

for the term

of the license

(3) Issuance of Level II license $50.00 per year

for the term

of the renewal

(4) Official copy of licenses $10.00

(5) [Repealed.]

(6) Issuance of provisional, emergency, $50.00 per year

or apprenticeship license for the term of the license

(7) Peer review process $1,200.00 one-time fee

(8) Pre-application criminal background $25.00

determination

(b) Pursuant to qualifications and procedures determined by the Secretary, the Agency shall, upon request, waive application fees to qualified military members and military spouses.

(c) Fees collected under this section shall be credited to special funds established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5, and shall be available to the Agency to offset the costs of providing those services.

(Added 1971, No. 104, § 2; amended 1989, No. 118, § 1; 1997, No. 59, § 26, eff. June 30, 1997; 2001, No. 65, § 12; 2005, No. 202 (Adj. Sess.), § 6; 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; 2015, No. 57, § 6; 2019, No. 152 (Adj. Sess.), § 10, eff. April 1, 2021.)

§ 1698 Causes for licensing action

Any one of the following, or any combination of the following, constitutes potential cause for licensing action whether occurring within or outside the State:

(1) Unprofessional conduct, which means:

(A) grossly negligent conduct or greater, on or off duty, that places a student or students in meaningful physical or emotional jeopardy, or conduct that evidences moral unfitness to practice as an educator;

(B) conviction for a criminal offense in which the underlying circumstances, conduct, or behavior, by gross negligence or greater, places a student or students in meaningful physical or emotional jeopardy, or conviction of a crime that evidences moral unfitness to practice as an educator;

(C) conviction of grand larceny under 13 V.S.A. § 2501 or embezzlement as defined in 13 V.SA. chapter 57, subchapter 2, provided charges were brought after July 1, 2006;

(D) conviction of a crime charged after July 1, 2006 that involves fraudulent misrepresentation, dishonesty, or deceit, including conviction for any of the following: 13 V.S.A. §§ 1101, 1102, 1103, 1104, 1106, 1107, 1108, 3006, or 3016, provided that conviction under 13 V.S.A. §§ 2002, 2502, 2561, 2575, 2582, and 2591, if the value or amount involved is $500.00 or less, shall not be considered a conviction under this subdivision unless it is part of a larger pattern of dishonesty, deceit, or fraud;

(E) a pattern of willful misconduct or a single egregious act of willful misconduct in violation of duties and obligations of the position;

(F) falsification, misrepresentation, or misstatement of material information provided in connection with the application for or renewal or reinstatement of a license or endorsement; and

(G) with respect to a superintendent, the failure to maintain the confidentiality and privileged status of information provided pursuant to subsection 1700(c) and subdivision 1708(f)(3) of this title.

(2) Incompetence, which means the inability or incapacity to perform the duties and competencies required by the license.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007.)

§ 1699 Reports of alleged unprofessional conduct or incompetence

(a) An individual who has reasonable cause to believe a licensee has engaged in unprofessional conduct or is incompetent may, and a superintendent who has reasonable cause to believe a licensee has engaged in unprofessional conduct or is incompetent shall, submit a written report to the Secretary concerning allegations of unprofessional conduct or incompetence about a licensee. A principal submitting a report under this section shall submit it to the superintendent and may also submit it to the Secretary.

(b) Except as provided in section 1708 of this title, information provided the licensing office under this section shall be confidential.

(c) A person who acts in good faith under the provisions of this section shall not be liable for damages in any civil action.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 164, eff. Feb. 14, 2014.)

§ 1700 Investigation

(a) Investigation committee. Upon receiving notice of either an applicant’s appeal of a licensing office decision or an allegation of unprofessional conduct or incompetence on the part of a licensee, the hearing panel administrative officer shall assign one or more of its licensee members to serve on an investigation committee with an investigator and prosecuting attorney assigned by the Secretary of Education to investigate the licensing decision or allegation and make recommendations to the Secretary in accordance with subsections (b) and (d) of this section. Teacher members shall be assigned to assist in the investigation of matters involving teachers and administrator members in matters involving administrators. Members shall not serve on a hearing panel regarding any matter they assisted in investigating. If the administrative officer is unable to assign one or more members to the investigation committee by reason of disqualification, resignation, vacancy, or necessary absence, the officer shall appoint ad hoc members who shall meet the requirements of subsection 1693(b) of this title.

(b) Preliminary review. After conducting a preliminary review of an allegation of unprofessional conduct or incompetence or of a denial of a license based on alleged unprofessional conduct or incompetence, the investigation committee shall make a recommendation to the Secretary regarding whether to conduct a formal investigation.

(c) Formal investigation. If the Secretary decides to conduct a formal investigation, the Secretary shall:

(1) notify the educator and direct the investigation committee to proceed with a formal investigation; and

(2) notify the superintendent of the school district in which the educator may be employed, or if the educator is currently employed as a superintendent, the chair of the board of the supervisory union or supervisory district that employs the superintendent, that the office has commenced a formal investigation of an allegation of unprofessional conduct or incompetence and shall specify the provisions of section 1698 of this title that best describe the allegation.

(d) Recommendation. Upon completing its investigation, the investigation committee shall recommend that the Secretary, with respect to a license application, affirm, or reverse a licensing office decision or, with respect to alleged unprofessional conduct or incompetence, issue, or not issue formal charges.

(e) Professional guidance. In its recommendation as to whether the Secretary should issue formal charges and, if so, what form they should take, the committee may consider the effect it believes its professional guidance may have in mitigating the need for and nature of licensing action.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 165, eff. Feb. 14, 2014.)

§ 1701 Secretary’s determination

(a) Matters involving denial of licensure. With respect to an applicant’s appeal, the Secretary shall, within 10 days of receiving the committee’s recommendation, affirm or reverse the licensing decision and notify the applicant in writing. If the Secretary reverses the decision, the office shall issue a license accordingly. If the Secretary affirms the decision, the applicant may appeal by notifying the Secretary in writing within 10 days of receiving the Secretary’s decision. The Secretary shall notify the hearing panel administrative officer of the appeal.

(b) Matters involving alleged unprofessional conduct or incompetence. With respect to a licensee alleged either incompetent or to have engaged in unprofessional conduct, the Secretary shall, within 10 days of receiving the investigation committee’s recommendation, determine whether to issue a formal charge and what, if any, licensing action should be imposed. If the Secretary determines no formal charge is warranted, the Secretary shall notify in writing the licensee and, if the licensee is employed, the superintendent of the school district of employment. If the Secretary determines a formal charge is warranted, the Secretary shall prepare a formal charge, file it with the hearing panel administrative officer, and cause a copy to be served upon the licensee charged together with a notice of hearing and procedural rights, as provided in this chapter. The Secretary shall provide a copy of the formal charge to the superintendent of the school district, if any, in which the licensee is employed, or if the licensee is employed as a superintendent, to the chair of the supervisory union that employs the superintendent, provided the superintendent or board chair agrees to maintain the confidentiality and privileged status of the information as provided in subsection 1708(d) of this title. If the Secretary finds that public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in the formal charge, the hearing panel may order summary suspension of a license pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 166, eff. Feb. 14, 2014.)

§ 1702 Hearing panels

(a) Appointment. The Governor shall appoint seven teachers, four administrators, and three members of the public to serve on hearing panels for terms of three years beginning on July 1 of the year of appointment. No person shall be eligible for more than one sequential reappointment. The Governor shall ensure appointments are consistent with the requirements found in subdivisions 1693(b)(1)-(3) of this title. By appointment, the Governor shall fill any vacancy for the remainder of its term. Panel members shall be considered appointive officers for the purposes of 3 V.S.A. chapter 29 and shall be compensated in accordance with 32 V.S.A. § 1010.

(b) Administration. The hearing panels shall be attached for administrative purposes to the office. Annually, the panel members shall meet collectively to:

(1) elect an administrative officer for the purpose of assigning hearing panels in licensing matters;

(2) approve a pool, based upon the Secretary’s recommendation, of impartial hearing officers who shall be attorneys admitted to practice in this State; and

(3) plan professional development activities.

(c) Powers and duties of hearing panels. Hearing panels shall have the authority to determine compliance by applicants, licensees, and the office with Standards Board standards according to which individuals may obtain, renew, and retain a license. Upon notification that the applicant has appealed under subsection 1701(a) of this title or that the Secretary has issued a formal charge under subsection 1701(b) of this title, the administrative officer shall appoint a hearing officer and a panel, as well as a chair for the panel. Panels hearing appeals of teachers shall comprise two teacher members and one public member. Panels hearing appeals of administrators shall comprise two administrator members and one public member. In the conduct of proceedings, the hearing officer, or the panel if it takes additional evidence under subsection 1706(a) of this title, may:

(1) issue subpoenas to compel the attendance of witnesses and the furnishing of evidentiary material in connection with a hearing;

(2) authorize depositions to be taken as needed in any investigation, hearing, or proceeding;

(3) conduct administrative hearings in accordance with this section, section 1705 of this title, and 3 V.S.A. chapter 25 regarding appeals of licensing decisions and charges of unprofessional conduct or incompetence;

(4) in the case of the hearing officer, recommend and, in the case of a hearing panel, make decisions regarding appeals of licensing decisions and formal charges; and

(5) undertake any other actions and procedures specified in or required or appropriate to carry out the provisions of this chapter.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 167, eff. Feb. 14, 2014.)

§ 1703 Time and notice of hearing

The chair of the panel shall fix the time of hearing, which shall be between 30 and 60 days after, as applicable, filing of the license application appeal or service of the charge on the licensee. The chair shall provide the applicant or licensee notice of the hearing, in it stating the following: the time and place of the hearing; the right of the applicant or licensee charged to file with the chair a written response within 20 days of the date of service; the fact that a record of the proceeding will be kept; the rights of the applicant or licensee charged at the hearing to appear personally, to be represented by counsel, to produce witnesses and evidence, to cross-examine witnesses, and to examine such documentary evidence as may be produced; and, in the case of formal charges against the licensee, the range of licensing actions to which the licensee charged may be subject if the formal charges are substantiated.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007.)

§ 1704 Burden of proof

(a) Denial of licensure. Except as provided in subsection (b) of this section, the burden of proof in matters involving the denial of an initial license or the addition of an endorsement to a license once issued shall be on the applicant by a preponderance of the evidence.

(b) Alleged unprofessional conduct or incompetence. The burden of proof in matters involving alleged unprofessional conduct or incompetence, including denial of a license based on alleged unprofessional conduct or incompetence, shall be on the Secretary by a preponderance of the evidence, except that in the case of revocation or suspension for more than one year, the proof shall be by clear and convincing evidence.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 168, eff. Feb. 14, 2014.)

§ 1705 Hearing officer recommendation

The hearing officer shall conduct the hearing for the purpose of issuing recommended findings of fact, conclusions of law, and a proposed decision to the hearing panel. The hearing officer may administer oaths and otherwise exercise the powers of a judicial officer regarding the conduct of a fair and impartial hearing. Within 30 days of the hearing, the hearing officer shall recommend to the hearing panel findings of fact, conclusions of law, and a decision and by certified mail provide a copy to the applicant or licensee.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007.)

§ 1706 Decision and order

(a) Hearing panel decision. The hearing panel may take additional evidence and may accept, reject, or modify the recommendations of the hearing officer and shall issue findings of fact, conclusions of law, and an order within 30 days of receiving the recommendations, unless the hearing panel grants an extension for good cause. The hearing panel shall provide a copy of the decision to the Secretary and, by certified mail, the applicant or licensee charged. If formal charges are not substantiated, the hearing panel shall include in its order a statement that the charges were not substantiated by the evidence, and it shall dismiss the charges.

(b) Charges substantiated. If formal charges are substantiated, the hearing panel, in its order, may: take no action; issue a warning; issue a private reprimand; issue a public reprimand; or condition, limit, suspend, or revoke the license to practice. An administrative penalty not to exceed $1,000.00 may be imposed by itself or in connection with the issuance of a warning or of a private or public reprimand.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 169, eff. Feb. 14, 2014.)

§ 1707 Appeal from panel order

(a)(1) A party aggrieved by a final decision of a hearing panel may, within 30 days after the decision, appeal that decision by filing a notice of appeal with the administrative officer of the hearing panel, who shall refer the case to the Director of the Office of Professional Regulation. The parties may agree to waive this review by written stipulation filed with the administrative officer of the hearing panel. The Director of the Office of Professional Regulation shall assign the case to an appellate officer, who shall conduct a review on the basis of the record created before the hearing panel and shall allow the presentation of evidence regarding alleged irregularities in hearing procedure not shown in the record.

(2) The appellate officer shall not substitute the appellate officer’s judgment for that of the hearing panel as to the weight of the evidence on questions of fact. The appellate officer may affirm the decision or may reverse and remand the matter with recommendations if substantial rights of the appellant have been prejudiced because the hearing panel’s finding, inferences, conclusions, or decisions are:

(A) in violation of constitutional or statutory provisions;

(B) in excess of the statutory authority of the hearing panel;

(C) made upon unlawful procedure;

(D) affected by other error of law;

(E) clearly erroneous in view of the evidence on the record as a whole;

(F) arbitrary or capricious; or

(G) characterized by abuse of discretion or clearly unwarranted exercise of discretion.

(b) Following appeal or waiver of appeal, a party may appeal to the Supreme Court, which shall review the matter on the basis of the records created before the hearing panel and the appellate officer.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2021, No. 69, § 13; 2021, No. 105 (Adj. Sess.), § 345, eff. July 1, 2022.)

§ 1708 Accessibility and confidentiality of licensing matters

(a) It is the purpose of this section both to protect the reputation of licensees from public disclosure of unwarranted complaints and to fulfill the public’s right to know of any action taken against an applicant or a licensee when that action is based on a determination of unprofessional conduct or incompetence.

(b) All meetings and hearings of the Standards Board and hearing panels shall be held in accordance with 1 V.S.A. chapter 5.

(c) The Secretary shall prepare and maintain a register of all complaints, which shall be a public record and which shall show:

(1) with respect to all complaints for which a formal investigation is initiated under subsection 1700(c) of this title, the following information:

(A) the date and the nature of the complaint, but not the identity of the licensee or information that could be used to identify the licensee; and

(B) a summary of the completed investigation; and

(2) only with respect to complaints resulting in the filing of a formal charge under subsection 1701(b) of this title, the following additional information:

(A) the name and business addresses of the licensee and the name of the complainant if disclosure is permitted under federal or State law and does not provide personally identifying information about a student;

(B) formal charges, provided they have been served or a reasonable effort to serve them has been made;

(C) except as provided under 1 V.S.A. chapter 5, the findings, conclusions, and order of the hearing panel; and

(D) final disposition of the matter.

(d) The hearing panel and the Secretary shall not disclose to anyone but the applicant or the licensee charged any information regarding a complaint, proceeding, or record, except the information required to be released under this section.

(e) A licensee or applicant shall have the right to inspect and copy all information in the possession of the Agency pertaining to the licensee or applicant except investigatory files not resulting in formal charges and attorney work product.

(f) Nothing in this section shall prohibit the disclosure of information:

(1) Regarding complaints to State or federal law enforcement agencies in the course of an investigation, provided the State or federal law enforcement agency agrees to maintain the confidentiality and privileged status of the information as provided in subsection (d) of this section.

(2) Regarding denials of licensure for cause, and license suspensions or revocations, and including reinstatements of licenses, to the National Association of State Directors of Teacher Education and Certification, consistent with the member agreement executed between it and the State of Vermont. For the purposes of this subdivision, “cause” includes any circumstance or activity also deemed to be a revocable offense.

(3) As is necessary in investigating a complaint, to the superintendent of a school district in which the licensee is employed or, if the licensee is employed as a superintendent, to the chair of the board that employs the superintendent, provided the superintendent or chair agrees to maintain the confidentiality and privileged status of the information as provided in subsection (d) of this section. Where, in the judgment of the Secretary, the alleged unprofessional conduct or incompetence places the students in immediate physical or emotional jeopardy, the office shall inform the superintendent of the school district in which the licensee is employed. The superintendent may take only such action as is both necessary to protect students and consistent with the rights of the licensee. The superintendent shall not do anything that compromises the integrity of the investigation.

(Added 2005, No. 214 (Adj. Sess.), § 2, eff. July 1, 2007; amended 2013, No. 92 (Adj. Sess.), § 170, eff. Feb. 14, 2014.)

§ 1709 Repealed

[Repealed]

2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012.

§ 1710 Literacy professional learning

(a) Each supervisory union and each approved independent school that is eligible to receive public tuition shall provide professional learning activities to kindergarten through grade-three educators, to include all teachers and administrators, on implementing a reading screening assessment, interpreting the results, determining instructional practices for students, and communicating with families regarding screening results in a supportive way. The instructional practices, programs, or interventions included in the professional learning activities provided pursuant to this section shall be evidence-based, effective, explicit, systematic, and consistent with federal and State guidance and shall incorporate the foundational concepts of literacy proficiency, including phonemic awareness, phonics, fluency, vocabulary, and comprehension.

(b) Each supervisory union and approved independent school that is eligible to receive public tuition shall maintain a record of completion of professional learning consistent with this section.

(Added 2023, No. 139 (Adj. Sess.), § 7, eff. July 1, 2025.)

Chapter 53 Contract, Compensation, and Sick Leave

Subchapter 1 General Provisions

§ 1751 Contract

A contract between a board of school directors and a teacher shall not be valid unless the same is in writing, or partly written and partly printed, in triplicate, and signed by the teacher and by a majority of the board or by a member of the board or other person who has been duly authorized by a majority vote of the board at a regular meeting to sign the contract in question on behalf of the board. One copy thereof shall be filed with the board, one copy delivered to the teacher, and one copy delivered to the superintendent. Such contract shall specify the date when the teacher shall begin service, the time, grade, and date of expiration of the license held by the teacher, the salary of the teacher and such other matters as may be necessary for a complete understanding between the parties.

(Amended 1989, No. 118, § 3.)

§ 1752 Grounds and procedures for suspension and dismissal

(a) A teacher under contract to teach in a public school who fails, without just cause, to complete the term for which the teacher contracted to teach shall be disqualified to teach in any public school for the remainder of the school year.

(b) The provisions of subsections (c) and (d) of this section regarding the nonrenewal, suspension, and dismissal of teachers shall not apply to a teacher employed under the terms of a collective bargaining agreement under chapter 57 of this title that provides the teacher just cause rights. The decision to nonrenew, suspend without pay, or dismiss a teacher shall be made by the school board.

(c) A teacher under contract to teach in a public school whose contract is not to be renewed for the ensuing year shall be notified in writing, setting forth the grounds therefor, not later than April 15. If the teacher so notified desires a hearing, the teacher shall so request in writing to the clerk of the school board. The teacher shall have the right to a hearing before the school directors within 15 days, may present witnesses and written evidence, and may be represented by counsel. A hearing shall be in executive session unless the teacher making the appeal requests or agrees in writing that it be open to the public. The school board shall affirm, modify, or reverse the nonrenewal and shall issue its decision in writing within five days. In the case of a probationary teacher who has received two written performance evaluations per year of probationary service, a decision of the board shall be final. The standard for nonrenewal of a contract shall be:

(1) In the case of a nonprobationary teacher, just and sufficient cause.

(2) In the case of a probationary teacher, any reason other than those prohibited by law. However, the standard for nonrenewal for a probationary teacher’s contract shall be just and sufficient cause if the teacher has not received at least two written performance evaluations per year of probationary service. A probationary teacher is a person who has been employed as a teacher in Vermont public schools for less than two school years.

(d) The following provisions shall apply to the suspension or dismissal of a teacher:

(1) A superintendent may suspend a teacher under contract on the grounds of incompetence, conduct unbecoming a teacher, failure to attend to duties, or failure to carry out reasonable orders and directions of the superintendent and school board.

(2) The suspension shall be in writing and shall set forth the grounds therefor. Copies shall be delivered to the teacher, to the chair, and to the clerk of the board of school directors. Thereafter, performance under the teacher’s contract shall be suspended, but the teacher shall be paid pro rata to the time of dismissal by the board.

(3) The teacher so suspended shall have the right to appeal to the board of school directors of the district for review of the decision. Filing a written notice of appeal with the clerk of the school board within seven days after the effective date of the suspension shall initiate the appeal. The clerk of the board shall forthwith forward a copy of the notice of appeal to the superintendent and send to the teacher an acknowledgment of receipt of the appeal.

(4) The school board to which the appeal is directed shall hear the appeal within 10 days after receipt of notification. The teacher and the superintendent shall be advised by the clerk of the board of the time and place of hearing by written notice at least three days before the date of hearing.

(5) All parties shall be entitled to counsel at every stage of the proceedings established by this section. Hearings shall be in executive session, unless the teacher making an appeal requests or agrees in writing that they be open to the public. A teacher making an appeal may waive in writing the right to a hearing.

(6) Upon hearing, or if no appeal is taken, the school board shall affirm or reverse the suspension or take such other action, including dismissal, as may appear just. If the suspension or the dismissal is reversed, the teacher shall not suffer any loss of pay, retirement benefits, or any other benefits to which the teacher would otherwise have been entitled.

(7) The decision of the school board shall be in writing and filed with the clerk of the school board not later than five days after the hearing or after the time for taking an appeal has expired. The clerk shall within three days notify the superintendent and the teacher in writing of the decision.

(e) No court action shall lie on the part of a teacher against any school district for breach of contract by reason of suspension or dismissal unless the procedures described in this section have been followed by the teacher.

(f) Every teacher’s contract shall be deemed to contain the provisions of this section, and any provision in the contract inconsistent with this section shall be considered of no force or effect.

(Amended 1963, No. 132; 1975, No. 79; 1997, No. 127 (Adj. Sess.), § 1; 2013, No. 161 (Adj. Sess.), § 72; 2019, No. 131 (Adj. Sess.), § 80; 2021, No. 111 (Adj. Sess.), § 1, eff. May 11, 2022.)

§ 1753 Time not spent in teaching counted in determining compensation

The time not exceeding five days during any one year, actually spent by a teacher in attendance upon a meeting of the State education associations, or upon educational meetings held under the authority of the Board of Education, and the time actually spent by a teacher in visiting schools when so directed by the superintendent, shall, in determining the compensation of the teacher, be counted the same as if spent in teaching.

(Amended 1977, No. 33, § 5.)

§ 1754 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§ 1755 Sick leave

(a) A full time teacher under contract to teach the regular school year in a public school shall be allowed a minimum of 10 days’ sick leave with full pay during each school year. Sick leave not used shall be cumulative at least to 20 days, so long as the teacher is employed in the same school district.

(b) The word “days” shall mean school days.

(c) The use of sick leave as provided in this section shall be subject to the rules and regulations of the directors of each school district.

(Added 1957, No. 173, §§ 1-3; amended 2019, No. 131 (Adj. Sess.), § 81.)

§ 1756 Protection of teachers, employees, and board members in damage suits

(a) A town, city, incorporated, or union school district and a supervisory union shall indemnify and save harmless to the extent of the policy limits provided in subsection (b) of this section any person employed by the school district or supervisory union and any member of its executive, supervisory, or administrative staff, including members of the school board, from financial loss and expense, including reasonable legal fees and costs, if any, arising out of any claim, demand, suit, or judgment by reason of alleged negligence or other act resulting in accidental injury to a person or accidental damage to or destruction of property, within or outside the school building, provided that the indemnified person at the time of the accident resulting in such injury, damage, or destruction was acting in the discharge of his or her duties within the scope of his or her employment or under the direction of the board of the school district or of the supervisory union.

(b) Each board of a school district or a supervisory union shall insure against the liability imposed upon it by this section in any insurance company organized in this State or in any insurance company of another state authorized by law to write insurance in this State, or through participation in an intermunicipal insurance agreement established under 24 V.S.A. chapter 121, subchapter 6, with minimum coverage in the form of a comprehensive general liability policy including liability for the operation of owned and nonowned motor vehicles and including the employees as additional insureds and with minimum limits of not less than $500,000.00 per person and $2 million per occurrence for bodily injury and for property damage.

(c) Each board of a school district or a supervisory union required to insure against the liability imposed upon it by this section shall furnish proof of insurance with the minimum limits prescribed by this section to the Secretary of Education, which shall be evidence of the insuring against the liability and property damage required by this section. In the event of cancellation, the board shall provide at least 30 days’ prior notice of cancellation to the Secretary.

(Added 1969, No. 123; amended 1975, No. 48, § 13, eff. April 15, 1975; 1975, No. 100, § 1; 2003, No. 36, § 12; 2003, No. 107 (Adj. Sess.), § 10, eff. Jan. 1, 2005; 2005, No. 182 (Adj. Sess.), § 5; 2013, No. 92 (Adj. Sess.), § 171, eff. Feb. 14, 2014.)

Subchapter 2 Minimum Salaries

§ 1791 Repealed

[Repealed]

1975, No. 48, § 14, eff. April 15, 1975.

§§ 1792, 1793 Repealed

[Repealed]

2003, No. 107 (Adj. Sess.), § 21(2).

§ 1794 Repealed

[Repealed]

1964, No. 40 (Sp. Sess.), § 8, eff. March 13, 1964.

Subchapter 3 Transition of Employees

§ 1801 Definitions

As used in this subchapter:

(1) “New District” means a district created by the realignment or merger of two or more current districts into a new supervisory district, union school district, or any other form of merged or realigned district authorized by law, including by chapter 11, subchapter 1, of this title, regardless of whether one or more of the districts creating the New District (a Realigning District) is a town school district, a city school district, an incorporated school district, a union school district, a unified union school district, or a supervisory district.

(2) “New SU” means a supervisory union created from the merger or realignment of two or more current supervisory unions or of all or some of the districts in one or more current supervisory unions (a Realigning SU). “New SU” also means a supervisory union created by the State Board’s adjustment of the borders of one or more current supervisory unions or parts of supervisory unions pursuant to section 261 of this title or otherwise, regardless of whether the New SU is known by the name of one of the current supervisory unions or the adjustment is otherwise structured or considered to be one in which one current supervisory union (the Absorbing SU) is absorbing one or more other supervisory unions or parts of supervisory unions into the Absorbing SU.

(3) “Employees of a Realigning Entity” means the licensed and nonlicensed employees of a Realigning District or Realigning SU, or both, that create the New District or New SU, and includes employees of an Absorbing SU and employees of a Realigning SU whose functions will be performed by employees of a New District that is a supervisory district.

(4) “System” shall mean the Vermont Municipal Employees’ Retirement System created pursuant to 24 V.S.A. chapter 125.

(5) “Transitional Board” means the board created prior to the first day of a New District’s or a New SU’s existence in order to transition to the new structure by negotiating and entering into contracts, preparing an initial proposed budget, adopting policies, and otherwise planning for implementation of the New District or New SU, and includes the board of an Absorbing District to which members from the other Realigning SU or SUs have been added in order to perform transitional responsibilities.

(Added 2015, No. 46, § 43, eff. June 2, 2015.)

§ 1802 Transition of employees to newly created employer

(a) Prior to the first day of a New District’s or a new SU’s existence, upon creation of the Transitional Board, the Board shall:

(1) appoint a negotiations council for the New District or New SU for the purpose of negotiating with future employees’ representatives; and

(2) recognize the representatives of the Employees of the Realigning Districts or Realigning SUs as the recognized representatives of the employees of the New District or New SU.

(b) Negotiations shall commence within 90 days after formation of the Transitional Board and shall be conducted pursuant to the provisions of chapter 57 of this title for teachers and administrators and pursuant to 21 V.S.A. chapter 22 for other employees.

(c) An Employee of a Realigning District or Realigning SU who was not a probationary employee shall not be considered a probationary employee of the New District or New SU.

(d) If a new agreement is not ratified by both parties prior to the first day of the New District’s or New SU’s existence, then:

(1) the parties shall comply with the existing agreements in place for Employees of the Realigning Districts or the Realigning SUs until a new agreement is reached;

(2) the parties shall adhere to the provisions of an agreement among the Employees of the Realigning Districts or the Realigning SUs, as represented by their respective recognized representatives, regarding how provisions under the existing contracts regarding issues of seniority, reduction in force, layoff, and recall will be reconciled during the period prior to ratification of a new agreement; and

(3) a new employee beginning employment after the first day of the New District’s or New SU’s existence shall be covered by the agreement in effect that applies to the largest bargaining unit for Employees of the Realigning Districts in the New District or for Employees of the Realigning SU in the New SU.

(e) On the first day of its existence, the New District or New SU shall assume the obligations of existing individual employment contracts, including accrued leaves and associated benefits, with the Employees of the Realigning Districts.

(Added 2015, No. 46, § 43, eff. June 2, 2015.)

§ 1803 Vermont Municipal Employees’ Retirement System

(a) A New District or New SU, on the first day of its existence, shall assume the responsibilities of any one or more of the Realigning Districts or Realigning SUs that have been participants in the System; provided, however, that this subsection shall not be construed to extend benefits to an employee who would not otherwise be a member of the System under any other provision of law.

(b) The existing membership and benefits of an Employee of a Realigning District or a Realigning SU shall not be impaired or reduced either by negotiations with the New District or New SU under 21 V.S.A. chapter 22 or otherwise.

(c) In addition to general responsibility for the operation of the System pursuant to 24 V.S.A. § 5062(a), the responsibility for implementation of all sections of this subchapter relating to the System is vested in the Retirement Board.

(Added 2015, No. 46, § 43, eff. June 2, 2015.)

§ 1804 Employment transition; new school district created upon withdrawal from a union school district

(a) Definitions. The definitions in section 1801 of this subchapter shall not apply to this section. As used in this section:

(1) “Expanded district” means a school district:

(A) that was responsible for the education of students residing in a single town for some, but not all, grades, whether by operating all grades, tuitioning all grades, or operating some grades and paying tuition for others; and

(B) that, as the result of its withdrawal from a union elementary or union high school district pursuant to section 725 of this title, is solely responsible for the education of its resident students in all grades prekindergarten through grade 12, whether by operating all grades, tuitioning all grades, or operating some grades and paying tuition for others.

(2) “New district” means:

(A) a school district created by withdrawal from a unified union school district pursuant to section 724 of this title that is responsible for the prekindergarten through grade 12 education of students residing in a single town, whether by operating all grades, tuitioning all grades, or operating some grades and paying tuition for others;

(B) a school district responsible for the prekindergarten through grade 12 education of students residing in a single town, whether by operating all grades, tuitioning all grades, or operating some grades and paying tuition for others, that was formed when another town’s withdrawal from a unified union school district resulted in dissolution of the union district;

(C) an expanded district that did not operate any schools immediately prior to withdrawal and, after withdrawal, operates a school in one or more of the grades previously operated by the union district; or

(D) a school district created by withdrawal from a union elementary or union high school district pursuant to section 725 of this title if prior to withdrawal the withdrawing member was a member of both a union elementary school district and a union high school district, was not independently organized as a district responsible for the education of students in any grade, and did not have a town school district board.

(3) “Operational date” means the date on which a new district or an expanded district assumes full and sole responsibility for the education of its resident students in the grades for which the union district was previously responsible. “Initial operational year” and “second operational year” mean the year commencing on the operational date and the year immediately following the initial operational year, respectively.

(4) “Transitional period” means the period of time beginning on the day on which the State Board declares the creation and existence of the new district or the expanded district pursuant to subdivision 724(h)(2) or 725(h)(2) of this title and continuing until the new district’s or newly expanded district’s operational date.

(b) Negotiations council and recognized representatives of a new district. At its first meeting during the transitional period, the board of a new district shall:

(1) appoint a school board negotiations council for the new district for the purpose of negotiating with the representatives of future licensed and nonlicensed employees of the new district; and

(2) recognize the representative of the employees of the union school district as the recognized representative of the employees of the new district.

(c) Employment agreements for the initial and second operational years of a new district.

(1) After the new district’s organizational meeting, the new district’s school board negotiations council and the representative of the employees of the new district shall commence negotiations relating to the employment of licensed and nonlicensed employees in the initial operational year. Negotiations shall be conducted pursuant to the provisions of chapter 57 of this title for teachers and administrators and 21 V.S.A. chapter 22 for other employees. The negotiations council or councils representing employees of the union school district shall represent the employees of the new district unless and until the exclusive representative for employees of the new district designates new representatives to a negotiations council.

(2) If the parties do not ratify a new agreement at least 90 days prior to the new district’s operational date, then the new district and its employees shall be governed by the terms of the collectively bargained agreement in place for the union district for the year preceding the initial operational year unless and until the parties agree otherwise.

(d) Non-probationary employees; changes to seniority and other provisions. For each new district and its employees, whether governed by an agreement in the initial operational year pursuant to subdivision (c)(1) or (c)(2) of this section:

(1) an employee of the union district in the year preceding the initial operational year who was not a probationary employee of the union district at the conclusion of that year shall not be considered a probationary employee if employed by the new district in the initial operational year; and

(2) prior to the operational date, the board of the union district, the board of the new district, and the representative of the employees of the union district may negotiate a temporary memorandum of understanding to adjust provisions in the union district contract regarding seniority, reductions in force, layoff, and recall in order to assist the workforce needs of both the union district and the new district and the best interests of the licensed and nonlicensed employees they employ.

(e) Individual employment contracts not covered by a collective bargaining agreement. On its operational date, the new district shall assume the obligations of each existing individual employment contract, including accrued leave and associated benefits, of any union district employee not covered by a collective bargaining agreement who worked in the building located in the new district in the year preceding the initial operational year and who chooses to continue to work in the same capacity in that building in the initial operational year.

(f) Supervisory unions. If the State Board creates a new supervisory union to provide services to the new district and one or more other school districts, then the provisions of subsections (b) through (e) of this section shall apply to the transition of any employee who was employed by the union district in the year prior to the initial operational year to provide services typically provided by a supervisory union employee, if the employee is employed by the new supervisory union in the initial operational year to provide the same services, with the board of the new supervisory union assuming the responsibilities of the board of the new district as outlined in subsections (b) through (e) of this section.

(Added 2021, No. 176 (Adj. Sess.), § 11, eff. June 7, 2022.)

Chapter 55 State Teachers' Retirement System of Vermont

§ 1931 Definitions

As used in this chapter:

(1) “Accumulated contributions” shall mean the sum of all the amounts deducted from the compensation of a member and credited to his or her individual account in the Pension Fund, together with regular interest thereon, as provided in subsection 1944(b) of this title.

(2) “Actuarial equivalent” shall mean a benefit of equal value under the actuarial assumptions last adopted by the Retirement Board under subsection 1943a(h) of this title.

(3) “Annuity” shall mean annual payments for life derived from the accumulated contributions of a member.

(4) “Average final compensation” shall mean:

(A) The average annual earnable compensation of a member during the three consecutive fiscal years beginning July 1 and ending June 30 of creditable service affording the highest average, or during all of the years of creditable service if fewer than three years. If the member’s highest three years of earnable compensation are the three years prior to separation of service and the member separates prior to the end of a fiscal year, the average final compensation shall be determined by adding:

(i) the actual earnable compensation earned in the fiscal year of separation through the date of separation and the corresponding service credit;

(ii) the earnable compensation and service credit earned in the preceding two fiscal years; and

(iii) the remaining service credit that is needed to complete the three full years, which shall be factored from the fiscal year preceding the two fiscal years described in subdivision (ii) of this subdivision (A). The earnable compensation associated with this remaining service credit shall be calculated by multiplying the annual earnable compensation reported by the remaining service credit that is needed.

(B) A member who works less than full-time shall have his or her reported earnable compensation annualized for purposes of determining average final compensation.

(C) An increase in compensation in excess of 10 percent in any of the years used to calculate average final compensation shall be excluded. For purposes of calculating average final compensation for any member, payments made in lieu of benefits shall not be considered part of a member’s average final compensation. For purposes of determining average final compensation for group C members, unused annual or sick leave, termination bonuses, and any other compensation for service not actually performed shall also be excluded.

(5) “Beneficiary” shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by the System.

(6) “Board” shall mean the board of trustees of the System provided for in section 1942 of this title to administer the System.

(7) “Creditable service” shall mean membership service, any other service allowable under this chapter, and service transferred under 3 V.S.A. § 495.

(8) “Earnable compensation” shall mean the full rate of compensation for the performance of professional services paid to a teacher when the teacher works the full normal working time for his or her position, in whatever manner paid, plus all additional wages received by a teacher for duties performed that provide direct educational value to the students. Long-term disability benefits, as long as the teacher remains in an employment relationship with the school district, shall be included.

(9) “Medical Board” shall mean the board of physicians provided for in subsection 1942(k) of this title.

(10) “Member” shall mean any person included in the System pursuant to section 1933 of this chapter.

(A) “Group A member”: any person who is first included in the membership of the System prior to July 1, 1981.

(B) “Group C member”: any person who is first included in the membership of the System on or after July 1, 1990, any person who was a Group B member on June 30, 1990 who was in service on that date, and any person who was a Group B member on June 30, 1990 who was absent from service on that date who returns to service on or after July 1, 1990.

(11) “Membership service” shall mean service as a member for which credit is allowable as provided in subsection 1936(a) of this title.

(12) “Pension” shall mean annual payments for life derived from money provided by the State.

(13) [Repealed.]

(14) “Regular interest” shall mean interest at such rate as may be established from time to time by the Board as provided in subsection 1943(b) of this title.

(15) “Retirement” shall mean withdrawal from active service with a retirement allowance granted under the provisions of this chapter.

(16) “Retirement allowance” or “maximum allowance” shall mean the sum of the annuity and the pension. All retirement allowances shall be payable in monthly installments; provided, however, that if the retirement allowance is less than $20.00 per month, it may be paid, at the discretion of the Board of Trustees, in quarterly or semi-annual installments or in a lump sum of equivalent actuarial value.

(17) “Service” shall mean all service as a teacher for which compensation is received.

(18) “State” shall mean the State of Vermont.

(19) “System” or “Retirement System” shall mean the State Teachers’ Retirement System of Vermont, as defined in section 1932 of this title.

(20) “Teacher” means any licensed teacher, principal, supervisor, superintendent, or any professional licensed by the Vermont Standards Board for Professional Educators who is regularly employed, or otherwise contracted if following retirement, for the full normal working time for the teacher’s position in a public day school or school district within the State, or in any school or teacher-training institution located within the State, controlled by the State Board of Education, and supported wholly by the State; or in certain public independent schools designated for such purposes by the Board in accordance with section 1935 of this title; or who is regularly employed by a board of cooperative education services created in accordance with chapter 10 of this title. In all cases of doubt, the Board shall determine whether any person is a teacher as defined in this chapter. It does not mean a person who is teaching with an emergency license.

(21) “Pension Fund” or “Vermont Teachers’ Retirement Fund” shall mean the Fund created by section 1944 of this title.

(22) “Benefits Fund” or “Retired Teachers’ Health and Medical Benefits Fund” shall mean the Fund created pursuant to section 1944b of this title.

(Amended 1981, No. 41, § 23; 1989, No. 78, § 2; 1989, No. 169 (Adj. Sess.), §§ 1, 2; 1991, No. 24, § 11; 1991, No. 64, § 6, eff. June 18, 1991; 1991, No. 247 (Adj. Sess.), § 7; 1995, No. 36, §§ 3, 4; 2003, No. 122 (Adj. Sess.), § 297d; 2005, No. 214 (Adj. Sess.), § 3; 2007, No. 13, § 22; 2007, No. 137 (Adj. Sess.), § 4; 2009, No. 24, § 5; 2009, No. 74 (Adj. Sess.), § 2; 2013, No. 22, § 10; 2017, No. 165 (Adj. Sess.), § 7; 2023, No. 168 (Adj. Sess.), § 7, eff. July 1, 2024.)

§ 1932 Date of establishment; power and privileges; name

A retirement system is hereby established and placed under the management of the Board of Trustees of the System for the purpose of providing retirement allowances and other benefits under the provisions of this chapter for teachers of the State of Vermont. The System shall begin operation and be established as of July 1, 1947. It shall have the power and privileges of a corporation and shall be known as the “State Teachers’ Retirement System of Vermont,” and by such name all of its business shall be transacted, all of its assets invested, and all of its cash and securities and other property held in trust for the purpose for which received.

(Amended 2007, No. 13, § 23.)

§ 1933 Members generally

(a) Membership in the System shall be a condition of employment for all teachers. A person shall not join the System as a Group A member. A person shall not join the system as a Group B member after June 30, 1990. A service shall not be included in the creditable service of any member unless the member was a member at the time the service was performed or is entitled to credit under section 1936 or 1944 of this title or was transferred under 3 V.S.A. § 495.

(b), (c) [Repealed.]

(d) Should any Group A or Group C member who has less than five years of creditable service in any period of seven consecutive years after last becoming a member be absent from service more than six years, or should a member withdraw the member’s accumulated contributions or die or retire under the provisions of this chapter, the member shall thereupon cease to be a member. However, the membership of any teacher granted leave of absence by the member’s school board for the purpose of professional study or for the acceptance of an exchange position shall be continued during such leave of absence subject to Board rules, if the member does not withdraw the member’s contributions, if any, and such member shall be considered in the service of the State for the purposes of the System during such leave of absence. In the case of leaves of absence granted by a member’s school board for purposes other than for professional study or for an exchange position, service credit shall be granted upon a contribution by the member or the member’s school board. Such contribution shall be made at the member’s current rate multiplied by the member’s earnable compensation for the year preceding the leave of absence.

(e) [Repealed.]

(Amended 1961, No. 163; 1961, No. 223, eff. July 18, 1961; 1963, No. 110, § 5, eff. May 28, 1963; 1965, No. 84, § 1; 1969, No. 62; 1969, No. 215 (Adj. Sess.), § 1; 1971, No. 201 (Adj. Sess.), § 2; 1973, No. 141 (Adj. Sess.), § 1; 1977, No. 53, § 3, eff. April 23, 1977; 1981, No. 41, § 24; 1981, No. 189 (Adj. Sess.), § 1, eff. April 22, 1982; 1989, No. 169 (Adj. Sess.), § 3; 1991, No. 64, § 7; 2013, No. 22, § 11; 2017, No. 165 (Adj. Sess.), § 8; 2019, No. 131 (Adj. Sess.), § 82.)

§ 1934 Repealed

[Repealed]

2017, No. 165 (Adj. Sess.), § 29.

§ 1935 Teachers in certain public or independent schools

(a) The Board of Trustees may designate certain public or independent schools, which are located within the State, and supported wholly or in part by the State but which are not under the control of the State Board of Education, as employers of teachers within the meaning of this chapter.

(b) At any time within 75 days following the date of such designation, any person employed on the date of designation in a teaching capacity by such institution and who is not then a member of the System may become a member of the System by filing with the Board of Trustees, on a form prescribed by the Board, an application to be covered in the membership of the System.

(c)-(f) [Repealed.]

(Amended 1963, No. 69; 1991, No. 24, § 11; 2007, No. 13, § 25; 2017, No. 165 (Adj. Sess.), § 9.)

§ 1936 Creditable service; military service

(a) Each member shall receive membership service credit for all service rendered while a member of the System since he or she became a member, or since he or she last became a member in the event of a break in his or her membership.

(b) [Repealed.]

(c) Creditable service shall consist of membership service credit, any other service allowable under this chapter, and service transferred under 3 V.S.A. § 495.

(d) Credit shall also be granted for any period of absence from service due to any class of military service of the United States approved by the Retirement Board, provided the member returns to service as a teacher as defined under section 1931 of this title within 90 days after having become discharged or separated from military service, as if such service had been service as a teacher. The earnable compensation of the teacher at the time of entering such military service shall be deemed to be the earnable compensation for the period of such service.

(e) Credit shall also be granted for any period of absence from service in connection with an approved workers’ compensation claim as a result of a work-related injury, provided the employee provides evidence of the period covered by the approved workers’ compensation claim upon return to active service. The earnable compensation of the employee at the time of entering the absence from service resulting from an approved workers’ compensation claim or the wages plus all other wage replacement compensation received while on the approved period of absence, whichever provides for the highest total compensation, shall be deemed to be the earnable compensation for the period of service. The total compensation under this subsection shall not exceed what the earnable compensation would have been had the member not been injured.

(Amended 1977, No. 53, §§ 1, 5, eff. April 23, 1977; 2001, No. 29, § 4; 2007, No. 13, § 26; 2017, No. 165 (Adj. Sess.), § 10.)

§ 1937 Service retirement

(a) Upon written application to the Board not later than 90 days, or longer for good cause shown, after the date upon which the retirement allowance is to begin:

(1) any Group A member may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that the member shall have attained age 60, and following completion of five years of creditable service for those members hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member’s retirement;

(2) any Group C member, having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that such member shall have attained age 62, and following completion of five years of creditable service for those members who are hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member’s retirement; and

(3) any Group C member not having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that the member shall have completed five years of creditable service and either has attained the age of 65 or has at least 90 years of combined age and years of creditable service at the date of the member’s retirement.

(b)(1) Upon service retirement, a Group A member shall receive a service retirement allowance that shall consist of:

(A) an annuity, which shall be the actuarial equivalent of the member’s accumulated contributions at the time of retirement except as subdivisions 1937(b)(4) and 1944(b)(2) of this title increase the annuity; and

(B) a pension, which shall be equal to one-120th of the member’s average final compensation multiplied by the number of years of the member’s membership service.

(2) Beginning on July 1, 1989, the service retirement allowance shall be not less than the larger of $4,550.00 a year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service, nor less than a proportionate amount thereof for any member or beneficiary who has completed less than 30 years of creditable service. Beginning on March 1, 1998, the service retirement allowance shall be not less than the larger of $6,600.00 a year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service, nor less than a proportionate amount thereof for any member or beneficiary who has completed at least five years, but less than 30 years, of creditable service. For this purpose, any annuity derived from the member’s contributions transferred from the existing system under subsection 1934(c) of this title and from additional contributions made under subdivisions 1944(b)(5) and (6) of this title shall not be included as part of the retirement allowance. Beginning on September 1, 2006, the service retirement allowance shall be not less than the larger of $9,000.00 per year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service nor less than a proportionate amount thereof for any member or beneficiary who has completed at least five years but less than 30 years of creditable service. Beginning on September 1, 2011, and on September 1 of every fifth year thereafter, the minimum service retirement allowance shall be increased by $1,000.00.

(3), (4) [Repealed.]

(c) Upon service retirement, a Group C member shall receive a service retirement allowance as follows:

(1) for a member having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, the sum of:

(A) 1-1/4 percent of the member’s average final compensation multiplied by years of creditable service prior to July 1, 1990;

(B) 1-2/3 percent of the member’s average final compensation multiplied by years of creditable service on and after July 1, 1990 through June 30, 2010, to a maximum of 50 percent of average final compensation; and

(C) 1-2/3 percent of the member’s average final compensation multiplied by years of creditable service, 2 of which shall be membership service, on or after July 1, 2010, to a maximum of 53.34 percent of average final compensation;

(2) for a member having neither attained the age of 57 nor completed 25 years of creditable service as of July 1, 2010, the sum of:

(A) 1-1/4 percent of the member’s average final compensation multiplied by years of creditable service prior to July 1, 1990;

(B) 1-2/3 percent of the member’s average final compensation multiplied by the member’s years of creditable service between July 1, 1990 and June 30, 2010; and

(C) 1-2/3 percent of the member’s average final compensation times the member’s creditable service on or after July 1, 2010 until attainment of 20 years of creditable service, and two percent of the member’s average final compensation multiplied by the member’s years of creditable service in excess of 20 years, to a maximum of 60 percent of average final compensation.

(d) Upon written application to the Board, any Group A member who has not attained age 60 but who has attained age 55 may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later, provided that the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.

(e) Upon early retirement a Group A member shall receive an early retirement allowance, which shall be the actuarial equivalent of:

(1) a normal retirement allowance payable at normal retirement date, based on the member’s average final compensation at early retirement and the number of years of creditable service the member would have completed had the member remained in service to the member’s normal retirement date; multiplied by

(2) the ratio that the number of the member’s years of creditable service at early retirement bear to the number of years of such service the member would have completed had the member remained in service to the member’s normal retirement date.

(f) Upon written application to the Board:

(1) any Group C member who has attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, has not attained the age of 62 but has attained the age of 55 and completed between five and 30 years of creditable service may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later;

(2) any Group C member who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, and neither has attained the age of 65 nor has at least 90 years of combined age and years of creditable service, but who has attained age 55 and completed five years of creditable service, may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later.

(g) Upon early retirement, a Group C member:

(1) who has attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010 shall receive an early retirement allowance equal to the service retirement allowance reduced by one-half of one percent for each month the member is under age 62 at the time of early retirement;

(2) who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, and neither has attained the age of 65 nor has at least 90 years of combined age and years of creditable service, shall receive an early retirement allowance, which shall be the actuarial equivalent of the normal retirement allowance computed under subsection (c) of this section, based on the average final compensation and years of creditable service at the date of early retirement.

(h) Any member who retires prior to age 62 may, at any time prior to the date the first payment on account of the member’s retirement allowance normally becomes due, elect to convert the retirement allowance otherwise payable to the member after retirement into a reduced retirement allowance that is its actuarial equivalent and is of such amount that, with the member’s primary insurance amount under Title II of the Social Security Act, the member will receive, so far as possible, the same amount each year before and after such primary insurance amount commences.

(i) When a member has a minimum of 25 years of creditable service, he or she may elect to purchase up to five years of additional service credit. A member who has attained the age of 57 and completed at least 25 years of creditable service as of June 30, 2010 and makes an election under this subsection shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds percent of the member’s average final compensation multiplied by the number of years purchased. A member who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010 and makes an election under this subsection shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds percent of the member’s average final compensation for each year up to 20 years of service and two percent of the member’s average final compensation for each year thereafter. If through a negotiated agreement or binding contract, a school district or supervisory union is required to purchase the whole or part of the additional years of service credit necessary to enable the member to take normal retirement, the school district or supervisory union may deposit a single contribution into the Pension Fund or make the contribution in four equal annual payments on dates established by the State Treasurer. If a school district or supervisory union elects to make the contribution in four equal annual payments, it shall, in addition, pay interest at the actuarially assumed interest rate at the time of each annual payment. Any payment not received within 30 days after the date it is due shall be considered delinquent and the delinquent payment and interest may be recovered by action in a court of competent jurisdiction against the school district or supervisory union liable therefor or may be deducted by the State Treasurer from any other monies payable to such school district or supervisory union by the State or any department or agency thereof.

(Amended 1959, No. 72, §§ 1, 2, eff. April 1, 1959; 1961, No. 85, § 1; 1963, No. 182, § 1; 1967, No. 172, § 1; 1969, No. 72; 1971, No. 201 (Adj. Sess.), §§ 1, 3; 1973, No. 5; 1973, No. 141 (Adj. Sess.), § 2; 1977, No. 38; 1981, No. 41, § 25; 1989, No. 78, § 5; 1989, No. 169 (Adj. Sess.), § 4; 1993, No. 33, § 2; 1997, No. 68 (Adj. Sess.), § 1, eff. March 1, 1998; 1999, No. 158 (Adj. Sess.), §§ 3, 8; 2003, No. 122 (Adj. Sess.), § 297e; 2005, No. 163 (Adj. Sess.), § 6; 2007, No. 13, § 27; 2009, No. 74 (Adj. Sess.), § 3; 2009, No. 139 (Adj. Sess.), § 5; 2017, No. 165 (Adj. Sess.), § 11.)

§ 1938 Disability retirement

(a) Upon notice not later than 90 days subsequent to the date the member may have separated from service, any member who has had five or more years of creditable service and has served as a teacher in the State during the five years immediately preceding the date of such separation from service, may be retired by the Board of Trustees on a disability retirement allowance on the first day of the calendar month next following receipt of application, provided such application is filed not less than 30 nor more than one 180 days subsequent to the filing of such notice, or on the first day of the calendar month next following the member’s separation from service provided such application is filed prior to such separation, and further provided that the Medical Board, after a medical examination of such member, shall certify that the member is mentally or physically incapacitated for ordinary service; and, if previously separated from service, that such incapacity has existed since the time of the member’s separation from such service; and that such incapacity is likely to be permanent.

(b) Anything to the contrary notwithstanding, should the Board of Trustees of the State Teachers’ Retirement System determine, within its sole discretion, that a member of said System had failed for good cause to file the notice or application required by subsection (a) of this section, within the time limits prescribed, said Board may permit the filing of such notice or application at any time prior to termination of membership and may thereupon act upon such notice or application as if it had been filed within the time limits prescribed by the subsection.

(c) Upon disability retirement a member shall receive a service retirement equal to the normal retirement benefit accrued to the effective date of the disability retirement, provided, however, that such allowance shall not be less than 25 percent of his or her average final compensation at the time of his or her disability.

(d) Once each year during the first five years following the retirement of a member on a disability retirement allowance, and once in every three-year period thereafter, the Board of Trustees may, and upon his or her application shall, require any disability beneficiary who has not reached his or her normal retirement date to undergo a medical examination by a Medical Board or by a physician or physicians designated by the Medical Board, such examination to be made at the place of residence of such beneficiary or other place mutually agreed upon. Should any disability beneficiary who has not reached his or her normal retirement date refuse to submit to such medical examination, his or her allowance may be discontinued until his or her withdrawal of such refusal, and should his or her refusal continue for one year, all his or her rights in and to his or her pension may be revoked by the Board of Trustees.

(e) Should the Medical Board report and certify to the Board of Trustees that any disability beneficiary has a residual functional capacity that might enable the beneficiary to return to work, and should the Board of Trustees reasonably conclude that the beneficiary is engaged in or is, as a result of specific findings made by a certified vocational counselor, able to engage in a gainful occupation paying more than the difference between the beneficiary’s retirement allowance and his or her average final compensation at retirement, the beneficiary’s pension may be reduced to an amount that, together with his or her annuity and the amount earnable by him or her, shall equal the beneficiary’s average final compensation at retirement, adjusted for inflation each year following retirement, provided that:

(1) The Board of Trustees shall provide written notice and an opportunity to be heard to the beneficiary prior to any reduction of the beneficiary’s pension under this subsection.

(2) If the beneficiary has engaged in a gainful occupation subsequent to receiving disability retirement, the Board of Trustees in its discretion may reject in whole or in part a vocational assessment of the beneficiary’s ability to engage in a more gainful occupation and may rely in whole or in part on evidence of the beneficiary’s actual earnings in determining the amount earnable by the beneficiary. In addition, if the Board of Trustees’ determination is based in whole or in part on a vocational assessment of the ability to engage in a gainful occupation, the beneficiary shall be given a reasonable opportunity, not to exceed two years, to seek gainful occupation prior to any change in his or her retirement allowance. Not later than 60 days before the change in retirement allowance is to occur, at the conclusion of the period of a reasonable opportunity to seek gainful occupation, the beneficiary may petition the Board of Trustees for an extension of that period. An extension will be granted only where the beneficiary can demonstrate reasonable diligence in seeking gainful employment and that a substantial hardship will result from a change in the retirement allowance. The Board of Trustees shall render a decision at least five days before the change in retirement allowance is set to occur. In the event that the beneficiary is subsequently restored to service as a teacher as set forth in subsection 1939(a) of this chapter, the beneficiary’s retirement allowance shall cease, effective on the date when reemployment commences.

(f) Every recipient of disability benefits who has not reached his or her normal retirement date shall, annually on a date determined by the Board of Trustees, file with the State Treasurer a statement certifying, under penalty of perjury and in such form as the Board of Trustees shall prescribe, the full amount of his or her earnings from earned income during the preceding calendar year. The State Treasurer may request, and the beneficiary shall provide within 60 days after such request, additional financial information and records pertinent to the beneficiary’s earned income. The beneficiary’s statement and accompanying forms and schedules and any other financial information and records provided by the beneficiary to the State Treasurer shall be confidential. In the event that a beneficiary fails to submit the certification or any required or requested financial information or records pertinent to the beneficiary’s earned income, the beneficiary’s retirement allowance shall be suspended until all such information and records have been submitted, and in the event that the failure continues for one year, the suspension shall include all the beneficiary’s rights in and to his or her pension. Notwithstanding any provision of this section to the contrary, if the beneficiary’s earned income for the preceding year exceeded the difference between the beneficiary’s retirement allowance and his or her average final compensation at retirement, adjusted for inflation each year following retirement, the beneficiary shall refund the portion of the preceding year’s retirement allowance that is equal to the amount of the reduction specified in subsection (e) of this section, and the refund amount may be offset against the beneficiary’s monthly pension benefits. Prior to suspension or revocation of the beneficiary’s retirement allowance, reemployment rights, or inception of any offset under this subsection, the Board of Trustees shall provide the beneficiary with written notice and an opportunity to be heard.

(g) If a disability beneficiary engages in gainful occupation paying more than the difference between his or her retirement allowance and his or her average final compensation at retirement, the Board of Trustees may, under uniform standards of economic need, reduce and from time to time adjust his or her pension to an amount that, together with his or her annuity and the amount earnable by him or her, equals his or her average final compensation at retirement. For the purposes of this subsection, “retirement allowance” means the allowance payable without optional modification as provided in section 1941 of this title, and does not include any part of the annuity not provided by the regular contributions of the member at the rate provided under subdivision 1944(b)(2) of this title.

(Amended 1959, No. 72, § 3, eff. April 1, 1959; 1961, No. 85, § 2; 1963, No. 110, § 1, eff. May 28, 1963; 1963, No. 182, § 2; 1967, No. 172, § 2; 1973, No. 141 (Adj. Sess.), § 3; 1981, No. 41, § 26; 1993, No. 33, § 3; 1999, No. 158 (Adj. Sess.), § 9; 2017, No. 165 (Adj. Sess.), § 12.)

§ 1938a Benefit denial; evidentiary hearing

(a) An applicant for disability retirement benefits under section 1938 of this title may file a request for an evidentiary hearing with the Board of Trustees if the application for benefits is denied.

(b) The hearing shall be conducted by a hearing officer designated by the Board and in conformance with rules adopted by the Board. Rules adopted by the Board shall be consistent with 3 V.S.A. § 809.

(c) The decision of the hearing officer shall constitute final administrative action.

(Added 2003, No. 38, § 6.)

§ 1939 Restoration to service

(a) In any fiscal year in which a beneficiary resumes service, as that term is defined in section 1931 of this title, he or she shall again become a member of the System, shall contribute at the rate established for members of his or her group and shall not be entitled to receive a retirement allowance, if he or she is:

(1) compensated in excess of the allowable number of days per school year as established by the Board for substitute teaching; or

(2) receives compensation in excess of 60 percent of the average compensation in the teacher System.

(b) If a person once again becomes a member under subsection (a) of this section, membership shall be retroactive to the beginning of the fiscal year in which the person resumed service and the member shall not be entitled to any retirement allowance received during that fiscal year. If the person received a retirement allowance during the fiscal year in which he or she resumed service, upon subsequent retirement the Board shall suspend his or her retirement allowance for a period necessary to reimburse the System for the total retirement allowance received during the period in which the beneficiary resumed service and became a member.

(c) Upon subsequent retirement of a person who once again becomes a member under subsection (a) of this section, the beneficiary’s former retirement allowance shall be restored, but the beneficiary shall not be entitled to cost of living adjustments for the period during which he or she was restored to service. In addition to the former retirement allowance, a beneficiary shall be entitled to a retirement allowance separately computed for the period beginning with his or her last restoration to service for which the member has made a contribution.

(Amended 1963, No. 110, § 2, eff. May 28, 1963; 1973, No. 141 (Adj. Sess.), § 4; 1981, No. 41 § 27; 1995, No. 36, § 5; 1999, No. 158 (Adj. Sess.), § 10.)

§ 1940 Termination of service; death; refund; pension

(a)(1) Upon the withdrawal of a member from service prior to retirement, the amount of the member’s accumulated contributions, less not more than one-third of the regular interest credited thereon as determined by the Board, will be returnable to the member. In lieu of the return of contributions:

(A) a member who has attained the age of 57 and completed at least five years of creditable service or completed 25 years of creditable service as of June 30, 2010, may allow his or her contributions to remain in the System and receive a retirement allowance, commencing as early as age 55;

(B) a member who has not attained the age of 57 or completed 25 years of creditable service as of June 30, 2010 but who has five or more years of creditable service may allow his or her contributions to remain in the System and receive a retirement allowance commencing as early as age 55 or when the combination of the member’s age and years of creditable service totals 90, whichever comes first.

(2) In either instance set forth in subdivisions (1)(A) and (B) of this subsection, the retirement allowance shall consist of the annuity provided by his or her accumulated contributions with interest to the date on which the allowance commences, and a pension equal to a service retirement pension computed on the basis of the member’s compensation and creditable service to his or her date of withdrawal from service.

(b)(1) Upon the death of a Group A or Group C member before retirement the member’s accumulated contributions will be payable to such primary beneficiary, primary and secondary beneficiaries, or joint beneficiaries, if any, as the member has nominated by written designation duly acknowledged and filed with the Board. In the absence of a written designation of beneficiary or in the event the designated beneficiary is deceased, the return of accumulated contributions with interest payable as a result of the death of the member prior to retirement shall be payable as follows:

(A) In the case of an open estate, to the administrator or executor.

(B) In the case of a closed estate and the deceased member’s account is valued at less than $1,000.00, in accordance with the Probate Division of the Superior Court decree of distribution.

(C) In the absence of an open estate or Probate Division of the Superior Court decree of distribution, and where the deceased member’s account is valued at less than $1,000.00 to the surviving spouse of the deceased owner, or, if there is no surviving spouse, then to the next of kin according to 14 V.S.A. § 314.

(D) In all other cases a probate estate shall be opened by the claimant, or other interested party, in order to determine the appropriate distribution of the proceeds of the deceased member’s account. When an estate is opened solely to distribute the proceeds of a deceased member’s account under this section, the Probate Division of the Superior Court may waive any filing fees.

(2) In addition, if any member was in service at the date of the member’s death or on leave of absence granted subject to Board rules and had completed one or more years of creditable service, or if the member’s death was the result of an accident while in service or on leave of absence under Board rules, a pension equal to ten percent of the member’s average final compensation, but not less than $50.00 per month, will be payable on account of each of the member’s dependent children under 18 years of age, or, if a dependent student, under 23 years of age, not exceeding a total of three. However, if a surviving child of any age was mentally or physically incapacitated for substantial gainful employment before attaining 18 years of age, the pension will be payable for the duration of the child’s incapacity.

(3) The survivors of a member who dies after December 31, 2006, while performing qualified military service shall be entitled to any additional benefits, other than benefit accruals related to the period of qualified military service, that would have been provided under the Plan had the member resumed employment and then terminated employment on account of death.

(Amended 1959, No. 226, § 1; 1963, No. 110, § 3, eff. May 28, 1963; 1966, No. 45 (Sp. Sess.), eff. July 1, 1965; 1967, No. 316 (Adj. Sess.), § 1, eff. March 22, 1968; 1973, No. 141 (Adj. Sess.), § 5; 1981, No. 41, §§ 28, 39(2); 1989, No. 169 (Adj. Sess.), § 5; 1999, No. 158 (Adj. Sess.), § 11; 2007, No. 13, § 28; 2009, No. 74 (Adj. Sess.), § 4; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2013, No. 22, § 12; 2015, No. 18, § 6; 2015, No. 23, § 37; 2017, No. 165 (Adj. Sess.), § 13; 2019, No. 131 (Adj. Sess.), § 83.)

§ 1941 Optional benefits

(a)(1) On or before the 15th day of the calendar month in which the first payment on account of a retirement allowance becomes normally due, but not later than the date on which the payment becomes normally due, each member shall elect to receive the member’s retirement allowance in accordance with one of the following forms of payment:

(A) Option 1. A retirement allowance payable during the member’s life computed pursuant to section 1937 or 1938 of this title, whichever is applicable.

(B) Option 2. A reduced retirement allowance payable during the member’s life, with the provision that at the member’s death a lump sum equal in amount to the difference between his or her accumulated contributions at the time of his or her retirement and the sum of the annuity payments actually made to him or her during his or her lifetime shall be paid to the person, if any, as he or she has nominated by written designation duly acknowledged and filed with the Board; or in the absence of a written designation of beneficiary, or in the event the designated beneficiary is deceased, the residual amount payable as a result of the death of the member after retirement shall be payable as follows:

(i) In the case of an open estate, to the administrator or executor.

(ii) In the case of a closed estate and the deceased member’s account is valued at less than $1,000.00, in accordance with the Probate Division of the Superior Court decree of distribution.

(iii) In the absence of an open estate or Probate Division of the Superior Court decree of distribution, and when the deceased member’s account is valued at less than $1,000.00 to the surviving spouse of the deceased owner, or, if there is no surviving spouse, then to the next of kin according to 14 V.S.A. § 314.

(iv) In all other cases, a probate estate shall be opened by the claimant, or other interested party, in order to determine the appropriate distribution of the proceeds of the deceased member’s account. When an estate is opened solely to distribute the proceeds of a deceased member’s account under this section, the Probate Division of the Superior Court may waive any filing fees.

(C) Option 3. A reduced retirement allowance payable during the member’s life, with the provision that it shall continue after his or her death at one-half the rate paid to him or her and be paid for the life of the beneficiary nominated by him or her by written designation duly acknowledged and filed with the Board at the time of retirement, should the beneficiary survive him or her.

(D) Option 4. A reduced retirement allowance payable during the member’s life, with the provision that it shall continue after his or her death at three-fourths of the rate paid to him or her and be paid for the life of the beneficiary nominated by him or her by written designation duly acknowledged and filed with the Board at the time of retirement, should the beneficiary survive him or her.

(E) Option 5. A reduced retirement allowance payable during the member’s life, with the provision that it shall continue after his or her death for the life of the beneficiary nominated by him or her by written designation duly acknowledged and filed with the Board at the time of retirement, should the beneficiary survive him or her.

(2) The benefits payable under options 2, 3, 4, and 5 shall be determined as actuarial equivalents of the retirement allowance under option 1. Any member who elects to receive a retirement allowance under the provisions of options 3, 4, or 5 may elect to receive a benefit further reduced actuarially as prescribed by the Board with the added provision that on the basis of stipulations contained in a plan-approved domestic relations order or if the retired member survives his or her nominated beneficiary, the retirement allowance that would have been payable under option 1 shall be paid to the retired member during the remainder of his or her lifetime. If a member does not make an election as to the form of his or her retirement allowance, the member shall receive his or her retirement allowance under the provisions of option 1.

(b)(1) A retirement allowance shall be payable to the eligible surviving beneficiary, if any, following the death of a:

(A) Group A member who had attained age 60 or had completed 30 years of creditable service; or had not attained age 60 and had completed 10 years (but less than 30 years) of creditable service and was in service at the time of the member’s death.

(B) Group C member who had attained age 55 and completed five years of creditable service; or had not attained age 55 and completed 10 years of creditable service and was in service at the time of the member’s death.

(2) In order to be eligible to receive the retirement allowance, the surviving beneficiary must be nominated by the member by written designation duly acknowledged and filed with the Board, and if the beneficiary is other than the spouse of the member, the beneficiary must be dependent upon the member at the time of the member’s death, provided that no person entitled to a pension under subsection 1940(b) of this title may be eligible for a retirement allowance under this section. The Board shall from time to time adopt uniform rules for determining whether a designated beneficiary was dependent upon a member; if, in the judgment of the Board, a surviving beneficiary in receipt of a retirement allowance would have ceased to be dependent upon the member had the member survived, the Board may discontinue the retirement allowance payable to such surviving beneficiary. The retirement allowance payable to the surviving beneficiary shall be equal to the benefit that would have been payable had the member elected option 5 and retired on the member’s date of death, computed in the case of a member who has not attained normal retirement age on the basis of a disability retirement allowance or an early retirement allowance, as provided in subsection 1937(c) of this title; without regard to whether the member has completed the eligibility requirements for early retirement, whichever provides the greater benefit to the surviving beneficiary. Such retirement allowance to the surviving beneficiary shall be in lieu of the payment of the member’s accumulated contributions provided under subsection 1940(b) of this title; provided, however, that the surviving beneficiary may elect to receive payment of the member’s accumulated contributions in lieu of such retirement allowance or may elect to convert the retirement allowance otherwise payable to the member into an actuarial equivalent under the provisions of option 2 of this section. Failing an eligible surviving beneficiary, the member’s accumulated contributions shall be payable in accordance with the provisions of subsection 1940(b) of this title.

(c) [Repealed.]

(Amended 1959, No. 182, § 1; 1967, No. 269 (Adj. Sess.), § 1, eff. July 1, 1967; 1973, No. 141 (Adj. Sess.), § 6; 1975, No. 175 (Adj. Sess.), § 1; 1981, No. 41, § 29; 1989, No. 169 (Adj. Sess.), § 6; 1999, No. 53, § 6; 2001, No. 29, § 5; 2007, No. 13, § 29; 2007, No. 137 (Adj. Sess.), § 5; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2015, No. 23, § 38; 2017, No. 165 (Adj. Sess.), § 14.)

§ 1942 Board of Trustees; Medical Board; actuary; rate of contribution; safekeeping of securities

(a) The general administration and the responsibility for the proper operation of the System and for making effective the provisions of this chapter are hereby vested in the Board of Trustees of the System, which shall be organized immediately after three of the trustees provided for in this section have qualified.

(b) The Board shall consist of six trustees, as follows:

(1) the Secretary of Education, ex-officio;

(2) the State Treasurer, ex-officio;

(3) the Commissioner of Financial Regulation, ex-officio;

(4) two trustees and one alternate, who shall be members of the System and who shall be elected by the members of the System for a term of four years according to such rules as the Board shall adopt to govern the election; and

(5) one trustee and one alternate, who shall be elected by the Board of Directors, Association of Retired Teachers of Vermont, who shall be a retired member of the System receiving retirement benefits, for a term of four years.

(c) If a vacancy occurs in the office of a trustee, except for the trustee elected by the Board of Directors, Association of Retired Teachers of Vermont, the vacancy shall be filled by the Board, which shall appoint a member of the System to serve until the next regular election is held. A vacancy in the office of the trustee appointed by the Board of Directors, Association of Retired Teachers of Vermont, shall be filled by that Board, which shall appoint a retired member of the System receiving retirement benefits to serve until the next regular election is held.

(d) The trustees as such shall serve without compensation, but they shall be reimbursed from the funds of the System for all necessary expenses that they may incur through service on the Board.

(e) Each trustee shall be entitled to one vote on the Board. Four concurring votes shall be necessary for a decision by the trustees at any meeting of the Board, and four trustees shall constitute a quorum of the Board. Any ex officio trustee may designate in writing a person within the trustee’s department, agency, or office to attend a meeting or meetings of the Board of Trustees in the trustee’s place. The designation shall be filed with the Secretary of the Board. A person so designated and an alternate attending on behalf of an elected or appointed trustee under this section shall have the same voting rights and responsibilities as the absent trustee at such meeting or meetings, except that the designee or alternate shall not automatically assume the trustee’s place as an officer of the Board.

(f) Subject to the limitations of this chapter, the Board shall, from time to time, establish rules for the administration of the System and for the transaction of its business.

(g) The Board shall elect from its membership a chair and a vice chair, and shall appoint a secretary who shall be the executive officer of the Board and who may or may not be a member of the Board. The Board may employ such actuarial, medical, and other services as shall be required.

(h) The Board shall keep in convenient form such data as shall be necessary for actuarial valuation of the System and for checking the experience of the System.

(i) The Board shall keep a record of all of its proceedings, which shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the System for the preceding year, the amount of the accumulated cash and securities of the System, and the last balance sheet indicating the financial condition of the System as shown by an actuarial valuation of the assets and liabilities of the System.

(j) The Attorney General of the State shall be the legal advisor to the Board.

(k) The Board shall designate a Medical Board of three physicians who are not eligible to participate in the System. The Medical Board shall arrange for and pass upon all medical examinations required under the provisions of this chapter, shall investigate all essential statements and certificates by or on behalf of a member in connection with application for disability retirement, and shall report in writing to the Board its conclusions and recommendations upon all the matters referred to it. If required, other physicians may be employed to report on special cases.

(l) The Board shall designate an actuary who shall be the technical adviser of the Board on matters regarding the operation of the System and who shall perform such other duties as are required in connection therewith.

(m) Immediately after the establishment of the System, the actuary shall make such investigation of the mortality, service, and compensation experience of the members of the System, as the actuary shall recommend and the Board shall authorize, for the purpose of determining the proper mortality and service tables to be prepared and submitted to the Board for adoption. Having regard to such investigation and recommendation, the Board shall adopt for the System such mortality and service tables as shall be deemed necessary and shall certify the rates of contribution payable under the provisions of this chapter. Beginning July 1, 2023, at least once every three fiscal years following the establishment of the System, the actuary shall make an actuarial investigation into the mortality, service, and compensation experience of the members and beneficiaries of the System, and taking into account the results of such investigation, the Board shall adopt for the System such mortality, service, and other tables as shall be deemed necessary and shall certify the rates of contribution payable under the provisions of this chapter.

(n) On the basis of such mortality and service tables as the Board shall adopt, the actuary shall make annual valuations of the assets and liabilities of the funds of the System.

(o) The Vermont Pension Investment Commission shall designate from time to time a depository for the securities and evidences of indebtedness held in the Pension Fund and may contract for the safekeeping of securities and evidences of indebtedness within and outside the State of Vermont in such banks, trust companies, and safe-deposit facilities as it shall from time to time determine, and the necessary and incidental expenses of such safekeeping and for service rendered, including advisory services in investment matters, shall be paid from the Pension Fund. Any agreement for the safekeeping of securities or evidences of indebtedness, except securities loaned pursuant to a securities lending agreement as authorized by subsection (q) of this section, shall provide for the access to such securities and evidences of indebtedness at any time by the custodian or any authorized agent of the State for audit or other purposes.

(p) The Board shall enter into insurance arrangements to provide health and medical benefits for retired members and their dependents. The State is legally responsible for the costs of the health and medical benefits provided in this chapter in the amounts specified in section 1944e of this chapter. The Board may enter into insurance arrangements to provide dental coverage for retired members and their dependents, provided the State or the System has no legal obligation to pay any portion of the dental benefit premiums.

(q) The Vermont Pension Investment Commission may authorize the loan of its securities pursuant to securities lending agreements that provide for collateral consisting of cash or securities issued or guaranteed by the United States government or its agencies equal to 100 percent or more of the market value of the loaned securities. Cash collateral may be invested by the lending institution in investments approved by the State Treasurer. Approval of investments shall be made in accordance with the standard of care.

(r) The Board shall review annually the amount of State contribution recommended by the actuary of the Retirement System as necessary to achieve and preserve the financial integrity of the fund established pursuant to section 1944 of this title. Based on this review, the Board shall determine the amount of State contribution necessary for the next fiscal year to achieve and preserve the financial integrity of the funds. On or before November 1 of each year, the Board shall inform the Governor and the House and Senate Committees on Government Operations and on Appropriations in writing about the amount needed. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

(Amended 1971, No. 155 (Adj. Sess.), eff. March 9, 1972; 1975, No. 175 (Adj. Sess.), § 2; 1987, No. 92, § 4, eff. June 23, 1987; 1989, No. 225 (Adj. Sess.), § 25(b); 1991, No. 151 (Adj. Sess.), §§ 3, 4; 1991, No. 265 (Adj. Sess.), § 2; 1995, No. 36, § 6; 1995, No. 180 (Adj. Sess.), § 38(a); 1999, No. 158 (Adj. Sess.), § 24; 2005, No. 48, § 2; 2005, No. 50, § 6; 2007, No. 13, § 30; 2007, No. 137 (Adj. Sess.), § 6; 2009, No. 74 (Adj. Sess.), § 5; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 92 (Adj. Sess.), § 172, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 28; 2017, No. 165 (Adj. Sess.), § 15; 2018, No. 11 (Sp. Sess.), § E.515.1; 2019, No. 131 (Adj. Sess.), § 84; 2021, No. 75, § 6, eff. June 8, 2021; 2021, No. 114 (Adj. Sess.), § 18, eff. July 1, 2022.)

§ 1943 Investments; interest rate; disbursements

(a) The members of the Vermont Pension Investment Commission established in 3 V.S.A. chapter 17 shall be the trustees of the Pension Fund created by this chapter, and with respect to them may invest and reinvest the assets of the Pension Fund, and hold, purchase, sell, assign, transfer, and dispose of the securities and investments in which the assets of the Pension Fund have been invested and reinvested. Investments shall be made in accordance with the standard of care established by the prudent investor rule under 14A V.S.A. chapter 9.

(b) The Board from time to time shall set rates of regular interest at such percentages compounded annually as it determines to be equitable both to members and to taxpayers of the State, but not less than three percent nor more than five percent.

(c) The State Treasurer shall be the custodian of the assets of the Pension Fund of the System. All payment from the Pension Fund shall be made by the Treasurer or by a deputy treasurer, only upon vouchers signed by two persons designated by the Board. A duly attested copy of a resolution of the Board designating such persons and bearing on its face specimen signatures of such persons shall be filed with the State Treasurer as authority for making payments upon such vouchers. No vouchers shall be drawn unless it has previously been authorized by resolution of the Board.

(d) Except as otherwise provided in this section, no trustee and no employee of the Board or member of the Vermont Pension Investment Commission shall have any direct interest in the gains or profits of any investment made by the Commission; nor shall any trustee or employee of the Board or Commission, directly or indirectly, for himself or herself or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the Board or Commission; nor shall any trustee or employee of the Board or Commission become an endorser or surety, or in any manner an obligor, for the monies loaned to or borrowed from the Board. The State Treasurer, with the approval of the Board and the Commission, shall adopt by rule standards of conduct for trustees and employees of the Board in order to maintain and promote public confidence in the integrity of the Board. Such rules shall prohibit trustees and employees from receiving or soliciting any gift, including meals, alcoholic beverages, travel fare, room and board, or any other thing of value, tangible or intangible, from any vendor or potential vendor of investment services, management services, brokerage services, and other services to the Board.

(Amended 1963, No. 110, § 4, eff. May 28, 1963; 1967, No. 13; 1967, No. 29, § 1, eff. March 14, 1967; 1981, No. 41, § 30; 1985, No. 171 (Adj. Sess.), § 4, eff. May 7, 1986; 1987, No. 80, § 9, eff. June 9, 1987; 1997, No. 67 (Adj. Sess.), § 3; 2005, No. 50, § 7; 2007, No. 13, § 31; 2015, No. 23, § 39; 2017, No. 165 (Adj. Sess.), § 16; 2019, No. 131 (Adj. Sess.), § 85; 2021, No. 75, § 7, eff. June 8, 2021.)

§ 1943a Compliance with federal law

(a) Intent. The General Assembly intends that the Retirement System and any trusts or custodial accounts established to hold the assets of the Retirement System in accordance with subsection (b) of this section be maintained, in form and operation, so as to maintain the status of the Retirement System as a qualified plan under 26 U.S.C. § 401(a) as amended, and the tax exempt status of such trusts and custodial accounts under 26 U.S.C. § 501(a), to the extent that those requirements apply to a governmental plan as described in 26 U.S.C. § 414. Notwithstanding any other provision of this chapter to the contrary, this section shall be applicable, administered, and interpreted in a manner consistent with maintaining the tax qualification of the Retirement System as a qualified plan and the tax exempt status of such trusts and custodial accounts under 26 U.S.C. §§ 401(a) and 501(a), respectively.

(b) Exclusive benefit. All assets of the Retirement System shall be held in trust, in one or more custodial accounts treated as trusts in accordance with 26 U.S.C. § 401(f), or in a combination thereof. Under any trust or custodial account, it shall be impossible at any time prior to the satisfaction of all liabilities with respect to members and their beneficiaries for any part of the corpus or income to be used for, or diverted to, purposes other than the exclusive benefit of members and their beneficiaries. However, this requirement shall not prohibit:

(1) the return of a contribution within six months after the Retirement System determines that the contribution was made by a mistake of fact; or

(2) payment of the expenses of the Retirement System.

(c) Vesting on plan termination. In the event of the termination of the Retirement System, the accrued benefits of eligible members shall become fully and immediately vested.

(d) Forfeitures. Service credits forfeited by a member for any reason shall not be applied to increase the benefits of any other member.

(e) Required distributions. Distributions shall begin to be made not later than the member’s required beginning date as defined under 26 U.S.C. § 401(a)(9) and shall be made in accordance with all other requirements of that subsection. Benefits shall be paid under the maximum allowance pursuant to this subsection even though the member has not previously applied to receive them. The System shall be deemed to be in compliance with the terms of 26 U.S.C. § 401(a)(9) so long as it is administered under a reasonable good faith interpretation of that subsection.

(f) Limitation on benefits. Benefits shall not be payable to the extent that they exceed the limitations imposed by 26 U.S.C. § 415, as adjusted for increases in the cost of living.

(g) Limitation on compensation. Benefits and contributions shall not be computed with reference to any compensation that exceeds the maximum dollar amount permitted by 26 U.S.C. § 401(a)(17) as adjusted for increases in the cost of living.

(h) Actuarial determination. Whenever the amount of any member’s benefit is to be determined on the basis of actuarial assumptions done by a professional actuary, those assumptions shall be specified by resolution, which documentation shall be incorporated in the System by reference. The Board shall also adopt interest and mortality assumptions for the purposes of determining actuarial equivalent benefits under the System. The Board shall adopt assumptions by resolution, which documentation shall be incorporated in the System by reference.

(i) Direct rollovers. An individual withdrawing a distribution from the Retirement System that constitutes an “eligible rollover distribution” within the meaning of 26 U.S.C. § 402, may elect, in the time and manner prescribed by the Retirement Board and after receipt of proper notice, to have any portion of the distribution paid directly to another plan that is qualified under 26 U.S.C. § 401(a), to an annuity plan described in 26 U.S.C. § 403(a), to an annuity contract described in 26 U.S.C. § 403(b), or to an eligible plan described in 26 U.S.C. § 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to account separately for amounts transferred into such plan, or to an individual retirement account or annuity described in 26 U.S.C. § 408(a) or (b), in a direct rollover. For distributions made after December 31, 2009, in accordance with 26 U.S.C. § 402(c)(11), a nonspouse beneficiary who is a designated beneficiary under 26 U.S.C. § 401(a)(9) may establish an individual retirement account into which all or a portion of a death distribution from the Retirement System to which such nonspouse beneficiary is entitled can be transferred directly.

(j) Compliance with the Uniformed Services Employment and Reemployment Rights Act (USERRA). Notwithstanding any provision of law to the contrary, contributions, benefits, and service credits with respect to qualified military service will be provided under the System in accordance with 26 U.S.C. § 414(u), unless State law provides more favorable benefits than those required by federal law.

(k) Nonvested members; consent. An individual who is not a vested member of the System and who has not yet reached the later of normal retirement age or age 62 must consent to any withdrawal of his or her assets of greater than $1,000.00. For individuals who are not vested members of the System and who have reached the later of normal retirement age or 62 years of age, amounts greater than $1,000.00 may be paid out without the individual’s consent. In all cases, amounts of $1,000.00 or less may be paid out without the individual’s consent.

(l) Rulemaking. The Board may adopt rules to ensure that this chapter complies with federal law requirements.

(Added 2007, No. 13, § 32; amended 2009, No. 24, § 6; 2015, No. 18, § 5; 2017, No. 165 (Adj. Sess.), § 17; 2019, No. 131 (Adj. Sess.), § 86.)

§ 1944 Vermont Teachers’ Retirement Fund

(a) Pension Fund. All of the assets of the System shall be credited to the Vermont Teachers’ Retirement Fund.

(b) Member contributions.

(1) Contributions deducted from the compensation of members shall be accumulated in the Pension Fund and separately recorded for each member.

(2) The proper authority or officer responsible for making up each employer payroll shall cause to be deducted from the compensation:

(A) Of each Group A member, five and one-half percent of the member’s total earnable compensation, including compensation paid for absence as provided by subsection 1933(d) of this title.

(B) Of each Group C member, the following shall apply:

(i) Beginning on July 1, 2022, a Group C member shall have the rate set forth in this subdivision (b)(2)(B)(i) applied to the member’s total earnable compensation for the fiscal year, which shall include compensation paid for absence as provided by subsection 1933(d) of this title, and any additional stipends identified as of July 1. A member’s rate shall not be adjusted during the fiscal year. For a member who works a part-time equivalency status, the rate shall apply to the member’s total earnable compensation and not to an amount equal to an annualized base salary. If a member is employed on a part-time equivalency status with two or more employers, the highest rate shall be applied to the amounts deducted from each employer. A member’s rate shall be calculated according to the following rates and income brackets:

(I) If a member’s base salary is at or below $40,000.00, the rate is 6.0 percent.

(II) If a member’s base salary is $40,000.01 or more but not more than $50,000.00, the rate is 6.05 percent.

(III) If a member’s base salary is $50,000.01 or more but not more than $60,000.00, the rate is 6.10 percent.

(IV) If a member’s base salary is $60,000.01 or more but not more than $70,000.00, the rate is 6.20 percent.

(V) If a member’s base salary is $70,000.01 or more but not more than $80,000.00, the rate is 6.25 percent.

(VI) If a member’s base salary is $80,000.01 or more but not more than $90,000.00, the rate is 6.35 percent.

(VII) If a member’s base salary is $90,000.01 or more but not more than $100,000.00, the rate is 6.50 percent.

(VIII) If a member’s base salary is $100,000.01 or more, the rate is 6.65 percent.

(ii) Beginning on July 1, 2023, a Group C member shall have the rate set forth in this subdivision (b)(2)(B)(ii) applied to the member’s total earnable compensation for the fiscal year, which shall include compensation paid for absence as provided by subsection 1933(d) of this title, and any additional stipends identified as of July 1. A member’s rate shall not be adjusted during the fiscal year unless the member’s full-time equivalency status changes, which shall require that the member’s rate be recalculated and the new rate applied for the remainder of that fiscal year. For a member who works a part-time equivalency status, the rate shall apply to the member’s total earnable compensation and not to an amount equal to an annualized base salary. If a member is employed on a part-time equivalency status with two or more employers, the highest rate shall be applied to the amounts deducted from each employer. A member’s rate shall be calculated according to the following rates and income brackets:

(I) If a member’s base salary is at or below $40,000.00, the rate is 6.10 percent.

(II) If a member’s base salary is $40,000.01 or more but not more than $50,000.00, the rate is 6.15 percent.

(III) If a member’s base salary is $50,000.01 or more but not more than $60,000.00, the rate is 6.25 percent.

(IV) If a member’s base salary is $60,000.01 or more but not more than $70,000.00, the rate is 6.35 percent.

(V) If a member’s base salary is $70,000.01 or more but not more than $80,000.00, the rate is 6.50 percent.

(VI) If a member’s base salary is $80,000.01 or more but not more than $90,000.00, the rate is 6.75 percent.

(VII) If a member’s base salary is $90,000.01 or more but not more than $100,000.00, the rate is 7.0 percent.

(VIII) If a member’s base salary is $100,000.01 or more, the rate is 7.25 percent.

(iii) Beginning on July 1, 2024, a Group C member shall have the rate set forth in this subdivision (b)(2)(B)(iii) applied to the member’s total earnable compensation for the fiscal year, which shall include compensation paid for absence as provided by subsection 1933(d) of this title, and any additional stipends identified as of July 1. A member’s rate shall not be adjusted during the fiscal year unless the member’s full-time equivalency status changes, which shall require that the member’s rate be recalculated and the new rate applied for the remainder of that fiscal year. For a member who works a part-time equivalency status, the rate shall apply to the member’s total earnable compensation and not to an amount equal to an annualized base salary. If a member is employed on a part-time equivalency status with two or more employers, the highest rate shall be applied to the amounts deducted from each employer. A member’s rate shall be calculated according to the following rates and income brackets:

(I) if a member’s base salary is at or below $40,000.00, the rate is 6.15 percent;

(II) if a member’s base salary is $40,000.01 or more but not more than $50,000.00, the rate is 6.20 percent;

(III) if a member’s base salary is $50,000.01 or more but not more than $60,000.00, the rate is 6.30 percent;

(IV) if a member’s base salary is $60,000.01 or more but not more than $70,000.00, the rate is 6.40 percent;

(V) if a member’s base salary is $70,000.01 or more but not more than $80,000.00, the rate is 6.55 percent.

(VI) If a member’s base salary is $80,000.01 or more but not more than $90,000.00, the rate is 6.80 percent.

(VII) If a member’s base salary is $90,000.01 or more but not more than $100,000.00, the rate is 7.10 percent.

(VIII) If a member’s base salary is $100,000.01 or more, the rate is 7.35 percent.

(C) In determining the amount earnable by a member set forth in this subdivision (2) in a payroll period, the Board may consider the rate of compensation payable to such member on the first day of a payroll period as continuing throughout the payroll period, and it may omit deduction from compensation for any period less than a full payroll period if a teacher was not a member on the first day of the payroll period, and to facilitate the making of deductions it may modify the deduction required of any member by such an amount as shall not exceed one-tenth of one percent of the annual earnable compensation upon the basis of which such deduction is made. The actuary shall make annual valuations of the reduction to the recommended State contribution attributable to the increase from five to six percent, and the Board shall include the amount of this reduction in its written report pursuant to subsection 1942(r) of this title.

(3) The deductions provided for in this section shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every Group A and Group C member shall be deemed to consent and agree to the deductions made and provided for in this section, and shall receipt for the member’s full salary or compensation, and payment of salary or compensation less such deduction shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits provided under this chapter.

(4) The proper authority or officer responsible for making up each employer payroll shall certify to the Board the amounts deducted on each and every payroll, and each of such amounts shall be paid into the Pension Fund and credited to the individual account of the member from whose compensation the deduction was made.

(A) All employer reports and corresponding member contributions required by this subdivision (4) shall be provided by the due date established by the Board. Employers providing reports or remitting contributions, which are more than 30 days delinquent, may be assessed a delinquent reporting fee of one percent of the amount that should have been reported and remitted for each month, or prorated portion of a month, that the report or contributions are delinquent.

(B) All employers shall provide accurate reports. Employers providing inaccurate reports shall be responsible for correcting any deficiencies and shall reimburse the System for any costs incurred by the System as a result of inaccuracy.

(C) In the event that an employer willfully files an inaccurate report, in addition to any other penalties provided by law, the employer shall pay the System an administrative penalty of up to 50 percent of the amount that was not accurately reported.

(D) The System may enforce the provisions of this subdivision (4) in Washington Superior Court.

(E) The Board may, in its discretion, waive part or all of a penalty assessment for good cause shown.

(5) [Repealed.]

(6) Any Group A member who has rendered service outside the State in the capacity of a teacher and as approved by the Board, or who was a teacher in Vermont on July 1, 1947 and elected not to join the System but who has subsequently joined, may:

(A) Elect to have included in the member’s creditable service all or part of any period of service outside the State. Any Group A member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at age 60 an annuity equal to one-120th of the member’s average final compensation multiplied by the number of years of service rendered outside the State for which the member elects to receive credit. No application may be accepted for the purchase of credit for service outside the State, however, if at the time of application the member has a vested right to retirement benefits in another retirement system based upon that service.

(B) Elect to have included in the member’s creditable service all or part of any service with which the member was credited immediately prior to any refund of the member’s accumulated contributions, including prior service, as defined in section 1931 of this title, which shall be restored upon full restoration of previous membership service as provided in this section. Any Group A member who so elects shall deposit in the Pension Fund by a single contribution an amount equal to the amount of accumulated contributions previously withdrawn together with regular interest thereon from the date of the refund to the date of repayment, or a proportionate part of that amount if less than the full period of previous service is to be included in the member’s creditable service. If a member has received a refund of the member’s accumulated contributions more than once, the member may elect the period or periods of previous service on account of which the member will make contributions under this subdivision (b)(6) subject to this limitation. Any Group A member who elects to repay any amount previously refunded shall continue thereafter to contribute to the System the proportion of earnable compensation determined on the basis of the member’s age on the date on which the member shall have last become a member.

(C) Elect to have included in the member’s creditable service those years of teaching in Vermont rendered between July 1, 1947 and July 1, 1972 for which no contributions to the System have been made. Any Group A member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at age 60 an annuity equal to one-120th of the member’s average final compensation multiplied by the number of years of service for which the member elects to receive credit.

(7) The contributions of a member, and such interest as may be allowed thereon, paid upon the member’s death or withdrawn by the member as provided in this chapter, shall be paid from the Pension Fund.

(8) Any Group A or Group C member who has rendered 15 years of creditable teaching service and who has, prior to becoming a member of the System, served a minimum of one full year of full-time service in the military, one full year of full-time service as a member of the Cadet Nurse Corps in World War II, the Peace Corps, VISTA, or AmeriCorps for which the member has derived no military or other pension benefits, may elect to have included in the member’s creditable service all or any part of the member’s military, Cadet Nurse Corps, Peace Corps, VISTA, or AmeriCorps service not exceeding five years. Any Group A member who elects credit under this subdivision shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at age 60 an annuity equal to one-120th of the member’s average final compensation multiplied by the number of years of the service rendered for which the member elects to receive credit. Any Group A member who elects credit for service in the Cadet Nurse Corps under this subdivision and any Group C member who elects credit under this subdivision shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds or two percent, whichever is applicable pursuant to section 1937 of this title, of the member’s average final compensation multiplied by the number of years of the service for which the member elects to receive credit. Notwithstanding the provisions of this subdivision, any Group C member who was a Group B member and any Group A member shall, upon application, be granted up to three years of credit for military service during the periods June 25, 1950 through January 31, 1955, February 28, 1961 through August 4, 1964 if service was performed while in what is now the Republic of Vietnam, and August 5, 1964 through May 7, 1975 and shall not be required to make a contribution, provided the member has rendered 15 years of creditable teaching service and prior to becoming a member served a minimum of one full year of full-time service in the military for which he or she has derived no military pension benefits. Notwithstanding the foregoing, in the event of a conflict between the provisions of this subsection and the provisions of 10 U.S.C. § 12736 concerning the counting of the same full-time military service toward both military and State pensions, the provisions of the U.S. Code shall control.

(9) Contributions required under this subsection shall be limited to contributions from Group A and Group C members.

(10) [Repealed.]

(11) Any Group A or Group C member who rendered service in the capacity of a teacher, as defined by the Board, in an approved public or independent school that was not a part of the System may elect to have included in the member’s creditable service all or part of any period of service in such approved school. Any member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds or two percent, whichever is applicable pursuant to section 1937 of this title, of the member’s average compensation multiplied by the number of years of service for which the member elects to receive credit. No application for credit under this subdivision shall be granted if at the time of application, the member has a vested right to retirement benefits in another retirement system based upon that service.

(12) Any Group A or Group C member may elect to have included in the member’s creditable service years of service during which the member exercised his or her option not to be a member of the System. Any member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds or two percent, whichever is applicable pursuant to section 1937 of this title, of the member’s average compensation multiplied by the number of years of service for which the member elects to receive credit.

(13) Any Group A or Group C member may elect to have included in the member’s creditable service all or any part of the member’s service in the capacity of a teacher in a school that was a part of the System for which the member has no credit. Any member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds or two percent, whichever is applicable pursuant to section 1937 of this title, of the member’s average final compensation multiplied by the number of years of the service for which the member elects to receive credit.

(14) Any Group C member may elect to increase his or her retirement allowance for years of service as a Group B member prior to July 1, 1990 from one and one-quarter percent of average final compensation to one and two-thirds percent of average final compensation. A member making an election under this subdivision shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds percent of the member’s average final compensation multiplied by the number of years of service for which the member elects to increase his or her retirement allowance.

(15) Notwithstanding any provision to the contrary and except for military credit elected under subdivision (8) of this subsection, a member may not elect more than a total of 10 years of creditable service under the provisions of this subsection.

(16) Any time a member is required to make a single contribution in connection with an election under this subsection, a member may, with the approval of the Board, contribute over a maximum of five years in installments of equal value toward the purchase of service. Those contributions shall become a part of the member’s accumulated contribution and shall be treated for all purposes in the same manner as the contributions made under subdivision (2) of this subsection. Any member who retires before completing payment as approved by the Board for the purchase of service under subdivisions (6) through (14) of this subsection shall receive pro rata credit for service purchased before the date of retirement, but if the member so elects at the time of retirement, the member may pay as much in a single sum as is necessary to provide full credit at that time.

(17) Any member may elect to have included in the member’s creditable service years of service as a State or municipal employee. Any member who so elects shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds or two percent, whichever is applicable pursuant to section 1937 of this title, of the member’s average compensation multiplied by the number of years of service for which the member elects to receive credit. No application for credit under this subdivision shall be granted if at the time of application, the member has a vested right to retirement benefits in another retirement system based upon that service.

(c) State contributions, earnings, and payments.

(1) All State appropriations and all reserves for the payment for all pensions including all interest and dividends earned on the assets of the Retirement System shall be accumulated in the Pension Fund. All benefits payable under the System, except for retired teacher health and medical benefits, shall be paid from the Pension Fund. Annually, the Retirement Board shall allow regular interest on the individual accounts of members in the Pension Fund that shall be credited to each member’s account.

(2) Beginning with the actuarial valuation as of June 30, 2006, the contributions to be made to the Pension Fund by the State shall be determined on the basis of the actuarial cost method known as “entry age normal.” On account of each member, there shall be paid annually by the State into the Pension Fund a percentage of the earnable compensation of each member to be known as the “normal contribution” and an additional percentage of the member’s earnable compensation to be known as the “accrued liability contribution.” The percentage rate of such contributions shall be fixed on the basis of the liabilities of the System as shown by actuarial valuation. “Normal contributions” and “accrued liability contributions” shall be by separate appropriation in the annual budget enacted by the General Assembly.

(3) The normal contribution shall be the uniform percentage of the total compensation of members that, if contributed over each member’s prospective period of service and added to such member’s prospective contributions, if any, will be sufficient to provide for the payment of all future pension benefits after subtracting the sum of the unfunded accrued liability and the total assets of the Pension Fund.

(4) It is the policy of the State of Vermont to liquidate fully the unfunded accrued liability to the System. Beginning on July 1, 2008, until the unfunded accrued liability is liquidated, the accrued liability contribution shall be the annual payment required to liquidate the unfunded accrued liability over a closed period of 30 years ending on June 30, 2038, provided that:

(A) From July 1, 2009 to June 30, 2019, the amount of each annual basic accrued liability contribution shall be determined by amortization of the unfunded liability over the remainder of the closed 30-year period in installments increasing at a rate of five percent per year.

(B) Beginning on July 1, 2019 and annually thereafter, the amount of each annual basic accrued liability contribution shall be determined by amortization of the unfunded liability over the remainder of the closed 30-year period in installments increasing at a rate of three percent per year.

(C) Any variation in the contribution of normal or unfunded accrued liability contributions from those recommended by the actuary and any actuarial gains and losses shall be added or subtracted to the unfunded accrued liability and amortized over the remainder of the closed 30-year period.

(5)-(12) [Repealed.]

(13) Annually, the Board shall certify an amount to pay the annual actuarially determined employer contribution, as calculated in this subsection, and additional amounts as follows:

(A) in fiscal year 2024, the amount of $9,000,000.00;

(B) in fiscal year 2025, the amount of $12,000,000.00; and

(C) in fiscal year 2026 and in any year thereafter until the Fund is calculated to have a funded ratio of at least 90 percent, the amount of $15,000,000.00.

(d), (e) [Repealed.]

(f) Expenses. The expenses of the System, including all the expenses necessary in connection with the administration and operation of the System, shall be paid from the Pension and Benefits Funds.

(g) Collection of contributions.

(1) The proper authority or officer responsible for making up the payroll shall draw his or her warrant, at intervals agreed upon with the Board but at least semiannually, payable to the System for all contributions deducted from the compensation of members, and shall transmit these contributions to the Board, together with any schedule of these contributions the Board requires.

(2) The Board shall certify to the Governor-Elect, as required by 32 V.S.A. § 301, an estimate of the contributions of the State that will become due and payable during the two years next following to meet the requirements of the Pension Fund of the System, and shall certify the percentage of payroll of all members that is equivalent to such amount. The amounts so certified shall be included in the budget submitted to the General Assembly. When appropriated, the Commissioner of Finance and Management shall issue his or her warrant in favor of the System for the amount certified by the Board to be necessary to carry out the provisions of this section.

(h) Contributions by State or political subdivision. Notwithstanding the provisions of subdivision 1944(b)(2) of this title to the contrary and pursuant to the provisions of Section 414(h) of the Internal Revenue Code, the State or political subdivisions employing such members shall pick up and pay the contributions required to be paid by Group A and Group C members with respect to service rendered on and after July 1, 1992. Contributions picked up by the State or political subdivisions employing such members shall be designated for all purposes as member contribution, except that they shall be treated as State contributions in determining tax treatment of a distribution. Each member’s compensation shall be reduced by an amount equal to the amount picked up by the State or political subdivisions employing such members. This reduction, however, shall not be used to determine annual earnable compensation for purposes of determining average final compensation. Contributions picked up under this subsection shall be credited to the Pension Fund.

(i) [Repealed.]

(Amended 1959, No. 42, §§ 1, 2; 1959, No. 72, §§ 4, 5, eff. April 1, 1959; 1959 (Adj. Sess.), No. 328, § 8(b); 1963, No. 182, § 3; 1971, No. 187 (Adj. Sess.); 1971, No. 233 (Adj. Sess.), §§ 2-4; 1973, No. 141 (Adj. Sess.), § 7; 1975, No. 175 (Adj. Sess.), § 3; 1977, No. 53, §§ 2, 4, eff. April 23, 1977; 1977, No. 247 (Adj. Sess.), §§ 191-193, 195; 1981, No. 41, §§ 31-34, 39(3); 1983, No. 149 (Adj. Sess.), § 1; 1983, No. 195 (Adj. Sess.), § 5(b); 1989, No. 78, §§ 8, 9; 1989, No. 169 (Adj. Sess.), § 7; 1991, No. 24, § 11; 1991, No. 247 (Adj. Sess.), §§ 1-4; 1993, No. 49, §§ 24, 25, eff. May 28, 1993; 1995, No. 36, § 7; 1995, No. 178 (Adj. Sess.), § 179a; 1999, No. 53, §§ 7, 7a; 1999, No. 158 (Adj. Sess.), § 5; 2001, No. 29, § 6; 2001, No. 63, § 175; 2001, No. 142 (Adj. Sess.), § 206; 2003, No. 122 (Adj. Sess.), § 297f; 2005, No. 163 (Adj. Sess.), § 7; 2005, No. 165 (Adj. Sess.), § 3; 2005, No. 215 (Adj. Sess.), § 277; 2007, No. 13, § 33; 2007, No. 137 (Adj. Sess.), § 7; 2009, No. 24, § 6a; 2009, No. 74 (Adj. Sess.), § 6; 2009, No. 139 (Adj. Sess.), § 6; 2013, No. 179 (Adj. Sess.), § E.514.2; 2015, No. 18, § 7; 2015, No. 172 (Adj. Sess.), § E.514.1; 2017, No. 165 (Adj. Sess.), § 18; 2019, No. 131 (Adj. Sess.), § 87; 2021, No. 114 (Adj. Sess.), § 19, eff. July 1, 2022; 2023, No. 78, § E.514.3, eff. July 1, 2023.)

§ 1944a Periodic actuarial reports

The Board shall cause to be made an actuarial reevaluation of the rate of member contributions deducted from earnable compensation pursuant to subdivision 1944(b)(2) of this title, on a periodic basis at least every three years, to determine whether the amount deducted is necessary to make the contributions picked up and paid by the State for such members cost neutral to the General Fund. The actuarial re-evaluation shall consider all relevant factors including federal tax law changes. The Board shall report the results of the actuarial reevaluation to the General Assembly together with any recommendations for adjustment in the members’ contribution rate under subdivision 1944(b)(2).

(Added 1991, No. 247 (Adj. Sess.), § 6.)

§ 1944b Retired Teachers’ Health and Medical Benefits Fund

(a) There is established the Retired Teachers’ Health and Medical Benefits Fund (Benefits Fund) to pay retiree postemployment benefits when due in accordance with the terms established by the Board of Trustees of the State Teachers’ Retirement System of Vermont pursuant to subsection 1942(p) and section 1944e of this title. The Benefits Fund is intended to comply with and be a tax exempt governmental trust under Section 115 of the Internal Revenue Code of 1986, as amended. The Benefits Fund shall be administered by the Treasurer.

(b) The Benefits Fund shall consist of:

(1) all monies remitted to the State on behalf of the members of the State Teachers’ Retirement System of Vermont for prescription drug plans, including manufacturer rebates, as well as monies pursuant to the Employer Group Waiver Plan with Wrap pursuant to the Medicare Prescription Drug Improvement and Modernization Act of 2003;

(2) any monies appropriated by the General Assembly for the purpose of paying postemployment benefits for retired members and their dependents provided by subsection 1942(p) and section 1944e of this title;

(3) any monies pursuant to subsection (h) of this section; and

(4) [Repealed.]

(5) any monies pursuant to section 1944d of this title.

(c) No employee contributions shall be deposited in the Benefits Fund.

(d) The Treasurer may invest monies in the Benefits Fund in accordance with the provisions of 32 V.S.A. § 434 or, in the alternative, may enter into an agreement with the Vermont Pension Investment Commission to invest such monies in accordance with the standards of care established by the prudent investor rule under 14A V.S.A. § 902, in a manner similar to the Commission’s investment of retirement system monies. Interest earned shall remain in the Benefits Fund, and all balances remaining at the end of a fiscal year shall be carried over to the following year. The Treasurer’s annual financial report to the Governor and the General Assembly shall contain an accounting of receipts, disbursements, and earnings of the Benefits Fund.

(e) [Repealed.]

(f) Contributions to the Benefits Fund shall be irrevocable and it shall be impossible at any time prior to the satisfaction of all liabilities, with respect to employees and their beneficiaries, for any part of the corpus or income of the Benefits Fund to be used for, or diverted to, purposes other than the payment of retiree postemployment benefits to members and their beneficiaries and reasonable expenses of administering the Benefits Fund and related benefit plans.

(g) [Repealed.]

(h) State contribution.

(1) Beginning on July 1, 2022, and annually thereafter, the State shall make annual contributions to the Benefits Fund known as the “normal contribution” and the “accrued liability contribution,” each of which shall be fixed on the basis of the liabilities of the System as shown by the most recent actuarial valuation and made by separate appropriation in the annual budget enacted by the General Assembly:

(A) The “normal contribution” shall be the amount that, if contributed over each member’s prospective period of service, will be sufficient to provide for the payment of all future retiree postemployment benefits after subtracting the unfunded actuarial liability and the total assets of the Benefits Fund. The “normal cost” shall be identified using the actuarial cost method known as “projected unit credit” and applying a rate of return equal to the most recently adopted actuarial rate of return pursuant to 3 V.S.A. § 523.

(B) The “accrued liability contribution” shall be the annual payment set forth in the most recent actuarial valuation that is necessary to liquidate the unfunded accrued liability over a closed period of 26 years and determined based on the funding schedule set forth in this section.

(i) It is the policy of the State of Vermont to liquidate fully the unfunded accrued liability for the payment of retiree postemployment benefits.

(ii) Beginning on July 1, 2022, until the unfunded accrued liability is liquidated, the accrued liability contribution shall be the annual payment required to liquidate the unfunded accrued liability over a closed period of 26 years ending on June 30, 2048, provided that the amount of each annual basic accrued liability contribution shall be determined by amortization of the unfunded liability over the remainder of the closed 26-year period in installments.

(2) Any variation in the contribution of normal or accrued liability contributions from those recommended by the actuary and any actuarial gains and losses shall be added or subtracted to the unfunded accrued liability and amortized over the remainder of the closed 26-year period.

(3) The Board shall review annually the amount of State contributions recommended by the actuary of the Retirement System. Based on this review, the Board shall determine the amount of State contribution necessary for the next fiscal year to achieve and preserve the financial integrity of the funds. On or before December 15 of each year, the Board shall inform the Governor and the House and Senate Committees on Government Operations and on Appropriations in writing about the amount needed. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

(Added 2013, No. 179 (Adj. Sess.), § E.514.1; amended 2015, No. 114 (Adj. Sess.), § 6; 2017, No. 85, § E.515.1; 2017, No. 165 (Adj. Sess.), § 19; 2019, No. 6, § 90, eff. April 22, 2019; 2019, No. 120 (Adj. Sess.), § A.38, eff. June 30, 2020; 2021, No. 114 (Adj. Sess.), § 24, eff. July 1, 2022.)

§ 1944c Employer charges for federal grants or reimbursements

(a) Notwithstanding any provision of law to the contrary, effective on July 1, 2015, the employer retirement costs and administrative operating expenses related to the retirement plans applicable to those teachers whose funding is provided from federal grants or through federal reimbursement shall be paid by local school systems or educational entities that participate in the Vermont Teachers’ Retirement Fund from those federal monies.

(b) The percentage rates to be applied shall be determined by an actuary approved by the Board of Trustees of the State Teachers’ Retirement System of Vermont and shall be applied to the total earnable compensation of members prepared by the actuary in compliance with subsection 1942(r) of this title. The Secretary of Education shall annually provide an accounting of federal grants and federal reimbursements, by school system, upon which payment by the participating schools shall be determined.

(c) The State Treasurer and the Secretary of Education shall establish procedures for the collection and deposit of those monies in the State Teachers’ Retirement System of Vermont. The Secretary of Education may delay implementation upon review of the federal grant program to permit timely and accurate claims for reimbursement of retirement expenses under a particular federal program in order to receive funding under that program. The Secretary of Education shall provide an annual report to the Senate Committee on Appropriations and the House Committee on Education regarding progress in implementation of this section. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

(Added 2013, No. 179 (Adj. Sess.), § E.514.3; amended 2017, No. 154 (Adj. Sess.), § 22, eff. May 21, 2018.)

§ 1944d Employer annual charge for teacher health care

(a) Beginning on July 1, 2018, the employer of teachers who become members of the State Teachers’ Retirement System of Vermont on or after July 1, 2015 shall pay an annual assessment of $1,275.00 for each such teacher to the Benefits Fund.

(b) Beginning on July 1, 2019, and each year thereafter, the annual assessment shall be adjusted to account for inflation, as approved annually by the Board of Trustees.

(Added 2013, No. 179 (Adj. Sess.), § E.514.4; amended 2017, No. 165 (Adj. Sess.), § 20; 2018, No. 11 (Sp. Sess.), § E.515.2.)

§ 1944e Retired teachers health and medical benefits

(a) Payment of a portion of the cost of health and medical benefits provided by subsection 1942(p) of this title for retired members and their dependents shall be made from the Benefits Fund. The Board shall determine the total costs of the applicable standard plan for a retired member and of the applicable standard plan for a retired member and spouse, and the Board shall pay the following portion of those costs:

(1) For retired members:

(A) 80 percent of the cost for a retired member who has either at least 10 years of creditable service as of July 1, 2010, or 25 years of creditable service at the time of retirement;

(B) 70 percent of the cost for a retired member who has fewer than 10 years of creditable service as of July 1, 2010, and 20 years or more but fewer than 25 years of creditable service at the time of retirement;

(C) 60 percent of the cost for a retired member who has fewer than 10 years of creditable service as of July 1, 2010, and 15 or more but fewer than 20 years of creditable service at the time of retirement; and

(D) for retired members who do not meet the requirements of subdivisions (A) through (C) of this subdivision (1), no portion of the costs shall be paid.

(2) For a retired member’s spouse. In addition to the payments for retired members’ health and medical benefits specified in subdivision (a)(1) of this section, 80 percent of the cost for the retired member’s spouse during the retired member’s life, where:

(A) the retired member has fewer than 15 years of creditable service as of July 1, 2010, and at least 25 years of creditable service at the time of retirement; or

(B) the retired member has 15 or more but fewer than 25 years of creditable service as of July 1, 2010, and at least 10 additional years of creditable service at the time of retirement; or

(C) the retired member has 25 or more but fewer than 30 years of creditable service as of July 1, 2010, and at least 35 years of creditable service at the time of retirement; or

(D) the retired member has at least 30 years of creditable service as of July 1, 2010, and at least five additional years of creditable service at the time of retirement; and

(E) the service was not purchased, restored, granted, or transferred on or after July 1, 2010.

(b) The Board shall pay an equal dollar amount for eligible retirees regardless of the plan selected. All eligible retirees may select health plan coverage from a range of plans approved by the Board. Retired members may authorize deductions to be made from their monthly retirement allowance for the balance of the cost of such benefits for the retired members and their dependents.

(c) Periodically, the Board shall approve the following:

(1) a standard plan for retirees who are not yet eligible for Medicare, which plan shall provide first dollar coverage for subscribers;

(2) a standard plan for retirees who are eligible for Medicare, which plan shall provide first dollar coverage for subscribers; and

(3) a range of plans that may be selected by retirees, including the standard applicable plans.

(d) For fiscal year 2004 and thereafter, the cost of the applicable standard plan determined under this subsection shall not exceed the cost of the $250.00 comprehensive plan offered in fiscal year 2003, adjusted for the appropriate fiscal year. In the event of the discontinuance of the $250.00 comprehensive plan, a plan with a comparable expenditure profile shall be used as a benchmark.

(e) As of January 1, 2007 and thereafter, upon retirement, members entitled to prorated Group medical benefit plan premium payments from the Retirement System under the terms of this section shall have a one-time option to reduce the percentage of premium payments from the Benefits Fund during the member’s life, with the provision that the Benefits Fund shall continue making an equal percentage of premium payments after the member’s death for the life of the dependent beneficiary nominated by the member under section 1941 of this title, should such dependent beneficiary survive the member. The Board, after consultation with its actuary, shall establish reduced premium payment percentages that are as cost neutral to the Benefits Fund as possible.

(Added 2017, No. 165 (Adj. Sess.), § 21; amended 2019, No. 25, § 2, eff. May 16, 2019.)

§ 1945 Application of other laws

No other provision of law in any other statute that provides wholly or partly at the expense of the State of Vermont for pensions or retirement benefits for teachers of the State, their widows, or other dependents, shall apply to members or beneficiaries of the Retirement System hereby established, their widows, or other dependents.

§ 1946 Exemption of member’s interest; assignment

That portion of the compensation of a member deducted or to be deducted under this chapter, the rights of a member or beneficiary to an annuity, pension, or retirement allowance hereunder, and all a member’s rights in the assets of the System, shall be exempt from taxation, including income tax, and from the operation of any laws relating to bankruptcy or insolvency, and shall not be attached or taken upon execution or other process of any court. No assignment by a member or beneficiary of any part of the assets to which he or she is or may be entitled, or of any right to or interest in the assets, shall be valid except as specifically provided in this chapter.

(Amended 2007, No. 13, § 34.)

§ 1946a Tax exemption for member of retirement system of another state or political subdivision thereof

Payments received by a member of a retirement system of another state or political subdivision thereof, whether called a pension, an annuity, a retirement allowance, or any other name, shall be exempt from taxation, including income tax, provided that such member was at the time of retirement a member of the teaching or supervising staff covered by such retirement system. The term “teaching or supervising staff” shall include the superintendent, assistant superintendents, principals, supervisors, assistant supervisors, directors, assistant directors, examiners, supervising school physicians, supervisors of health education, supervising nurses, and all other persons permanently employed in giving or supervising instruction in a public day school, normal school, teachers’ college, or other educational institution located in, and supported and controlled by, any state or political subdivision thereof.

§ 1946b Alternate payee; domestic relations orders

(a) As used in this section:

(1) “Alternate payee” means any individual who is recognized by a domestic relations order as having a right to receive all, or a portion of, another individual’s payment rights in the System.

(2) “Domestic relations order” means a judgment, decree, or order of the Family Division of the Superior Court issued pursuant to 4 V.S.A. chapter 10, concerning marital property rights that includes a transfer of all, or a portion of, a member’s or beneficiary’s payment rights in the System to an alternate payee. It also means a judgment, decree, or order from a court of competent jurisdiction in another state, concerning marital property rights that includes a transfer of all, or a portion of, a member’s or beneficiary’s payment rights in the System to an alternate payee. Domestic relations orders shall conform to the requirements of this section in order to be effective. A domestic relations order does not take effect until it is served on the System by certified or registered mail, return receipt requested. In the event that there is more than one domestic relations order, the order that is most recent in time and that has been served on the System will control.

(b) A member’s or beneficiary’s rights in the System may be modified by a domestic relations order as provided in this section.

(c) A domestic relations order shall contain all of the following elements:

(1) the identity of the member or beneficiary and the alternate payee by full name, current address, and Social Security number;

(2) the amount or percentage of the member’s or beneficiary’s benefits to be paid by the Board to the alternate payee and the date or dates upon which the calculation of payments is to be based;

(3) the number of payments or time period in which payments are required to be made under the domestic relations order; and

(4) each retirement plan to which the domestic relations order applies.

(d) A domestic relations order shall not provide:

(1) for a type or form of benefit, option, or payment not available to the affected member or beneficiary;

(2) for an amount or duration of payment greater than that available to the affected member or beneficiary;

(3) that payment of a retirement allowance commence before the member departs from service and commences to receive benefits;

(4) withdrawal of the member’s contributions without the consent of the member and the alternate payee; or

(5) any requirements that are contrary to the intent of this section.

(e) A domestic relations order may provide for apportionment of post-retirement adjustments to the retirement allowance.

(f) Payments to the alternate payee under a domestic relations order shall be limited to the life of the member or beneficiary.

(g) An alternate payee’s rights and interests under this section shall not survive the alternate payee’s death and shall not be transferable by inheritance.

(h) An alternate payee’s rights or interests acquired pursuant to this section are not subject to assignment, execution, garnishment, attachment, or other process. An alternate payee’s rights or interests may be modified only by a domestic relations order amending the domestic relations order that established the right or interest.

(i) The Board, the System, its agents, and employees shall not be liable to any person for carrying out the terms and conditions of a domestic relations order.

(j) The Board may adopt rules to implement this section.

(Added 1995, No. 36, § 8; amended 2009, No. 154 (Adj. Sess.), § 238; 2021, No. 20, § 63.)

§ 1947 Penalty

Whoever with intent to deceive shall make any statements or reports required under this chapter that are untrue, or shall falsify or permit to be falsified any record or records of the System, shall be guilty of a misdemeanor and shall be punishable therefor under the laws of this State.

§ 1948 Errors

Should any mistake be made, or should any change or error in the records result in any member or beneficiary receiving from the System more or less than he or she would have been entitled to receive had the records been correct, the Board shall have the power, in its discretion, to correct such mistake or such error, and as far as practicable, to adjust the payments in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid or in such a manner that the impact upon the fund is de minimis.

(Amended 2017, No. 165 (Adj. Sess.), § 22.)

§ 1949 Postretirement adjustments to retirement allowances

(a) Postretirement adjustments to retirement allowance. On January 1 of each year, the retirement allowance of each beneficiary of the System who is in receipt of a retirement allowance for at least a one-year period as of December 31 in the previous year, and who meets the eligibility criteria set forth in this section, shall be adjusted by the amount described in subsection (d) of this section. In no event shall a beneficiary receive a negative adjustment to the beneficiary’s retirement allowance.

(b) Calculation of net percentage increase. Each year, a determination shall be made of any increase or decrease, to the nearest one-tenth of a percent, in the Consumer Price Index for the month ending on June 30 of that year to the average of the Consumer Price Index for the month ending on June 30 of the previous year.

(1) Consumer Price Index; decreases. In the event of a decrease of the Consumer Price Index as of June 30 for the preceding year, there shall be no adjustment to the retirement allowance of a beneficiary for the subsequent year beginning on January 1; provided, however, that:

(A) such decrease shall be applied as an offset against the first subsequent year’s increase of the Consumer Price Index up to the full amount of such increase; and

(B) to the extent that such decrease is greater than such subsequent year’s increase, such decrease shall be offset in the same manner against two or more years of such increases, for up to but not exceeding five subsequent years of such increases, until fully offset.

(2) Consumer Price Index; increases. In the event of an increase in the Consumer Price Index, and provided there remains an increase following the application of any offset as in subdivision (1) of this subsection, that amount shall be identified as the net percentage increase and used to determine the members’ postretirement adjustment as set forth in subsection (d) of this section.

(c) Eligibility for postretirement adjustment. In order for a beneficiary to receive a postretirement adjustment allowance, the beneficiary must meet the following eligibility requirements:

(1) For any Group A or Group C member eligible for normal retirement, or who is vested deferred, on or before June 30, 2022, the member must be in receipt of a retirement allowance for at least 12 months prior to the January 1 effective date of any postretirement adjustment.

(2) For any Group C member who is first eligible for normal retirement and leaves active service on or after July 1, 2022, the member must be in receipt of a retirement allowance for at least 24 months prior to the January 1 effective date of any postretirement adjustment.

(3) Special rule for Group C early retirement. A Group C member in receipt of an early retirement allowance shall not receive a postretirement adjustment to the member’s retirement allowance until such time as the member has reached normal retirement age, provided the member meets all eligibility criteria set forth in this subsection.

(d) Amount of postretirement adjustment. The postretirement adjustment for each member who meets the eligibility criteria set forth in subsection (c) of this section shall be as follows:

(1) the full amount of the net percentage increase calculated pursuant to subsection (b) of this section for all Group A members, provided that:

(A) the net percentage increase following the application of any offset as provided in this section equals or exceeds one percent; and

(B) the maximum amount of any adjustment under this section shall be five percent; and

(2) one-half of the net percentage increase calculated pursuant to subsection (b) of this section for all Group C members, provided that:

(A) For Group C members eligible for normal retirement or who are vested deferred on or before June 30, 2022, the maximum amount of any adjustment under this section shall be five percent. An adjustment of less than one percent shall be assigned a value of one percent.

(B) For Group C members first eligible for normal retirement and who leave active service on or after July 1, 2022, the maximum amount of any adjustment under this section shall be four percent and the minimum amount shall be zero percent.

(e) As used in this section, “Consumer Price Index” means the Northeast Region Consumer Price Index for all urban consumers, designated as “CPI-U,” in the northeast region, as published by the U.S. Department of Labor, Bureau of Labor Statistics.

(Added 1971, No. 233 (Adj. Sess.), § 1; amended 1981, No. 41, § 35; 1989, No. 169 (Adj. Sess.), § 8; 1991, No. 64, § 8, eff. June 18, 1991; 1991, No. 247 (Adj. Sess.), § 5; 1999, No. 158 (Adj. Sess.), § 13; 2009, No. 74 (Adj. Sess.), § 7; 2009, No. 139 (Adj. Sess.), §§ 6a, 6b, 7, 13; 2011, No. 63, § H.2; 2015, No. 114 (Adj. Sess.), § 7; 2019, No. 131 (Adj. Sess.), § 88; 2021, No. 114 (Adj. Sess.), § 23, eff. May 9, 2022; 2021, No. 173 (Adj. Sess.), § 2, eff. July 1, 2022; 2023, No. 87 (Adj. Sess.), § 85, eff. March 13, 2024.)

§ 1949a Postretirement adjustment allowance account

(a) Intent. It is the intent of the General Assembly to recognize members who are in active service on or before June 30, 2022 and made contributions for the duration of fiscal year 2023 and members who are in active service on or after July 1, 2022 and made contributions for at least one year, as part of a broader effort to improve the health of the System. As an acknowledgment of these additional contributions, once the System is in a healthier financial position, it is the intent of the General Assembly that these members should receive postretirement adjustment allowances that will more fully reflect the net percentage increase in the Consumer Price Index. It is also the intent of the General Assembly that the postretirement adjustment allowance formula should be incrementally increased to 100 percent of the net percentage increase in the Consumer Price Index, but that no increase should occur to the formula unless the funded ratio of the System is at least 80 percent funded on an actuarial value basis and the accumulated assets of the Account are equal to or exceed the present value of the benefits to accrue to members.

(b) Creation. There is established the Postretirement Adjustment Allowance Account, to be maintained under the Retirement System, which shall be used to provide funding for postretirement adjustment formula enhancements or other benefits that may accrue to eligible members pursuant to the requirements of subsection (d) of this section.

(c) Funds. The Account shall consist of:

(1) any amounts transferred to it from the General Fund Balance Reserve established in 32 V.S.A. § 308c;

(2) any amounts transferred or appropriated to it by the General Assembly; and

(3) interest earned pursuant to subsection (d) of this section.

(d) Account administration. The Postretirement Adjustment Allowance Account shall be subordinate to the retirement benefits provided by the Retirement System. Contributions to the Account shall be irrevocable, and it shall be impossible at any time before satisfaction of all liabilities to provide funding for postretirement adjustment formula enhancements or other benefits that may accrue to eligible members for any part of the corpus or income of the Account to be used for, or diverted to, any purpose other than providing funding for postretirement adjustment formula enhancements or other benefits that may accrue to eligible members. All balances in the Account at the end of the fiscal year shall be carried forward, and interest earned shall remain in the Account.

(e) Recommendation of Board. In any fiscal year, the Board may recommend to the General Assembly that the monies in the Account be used to provide for postretirement adjustment formula enhancements or other benefits that may accrue to eligible members in the System, provided that:

(1) an evaluation has been conducted pursuant to section 1949b of this chapter;

(2) the actuary has certified that the System has a funded ratio of at least 80 percent in the most recent fiscal year; and

(3) the actuary has certified that the Account has sufficient assets to pay for the present value of any benefit being recommended.

(f) Use of funds. In the event that the General Assembly approves of the Board’s recommended postretirement adjustment formula enhancements or other benefit change pursuant to subsection (e) of this section, the Board may direct that funds sufficient to pay the present value of change be charged from the Account for that purpose.

(g) Account charges. In no event shall the funds charged from the Account exceed the outstanding Account balance.

(h) Account assets.

(1) For funding purposes, any asset value utilized in the calculation of the actuarial value of assets of a system shall exclude the Account as of the asset determination date for such calculation.

(2) For all purposes other than funding, the funds in the Account shall be considered assets of the System.

(i) Definition. As used in this section, “eligible member” means:

(1) a member of the System who is in active service on or before June 30, 2022 and made contributions for the duration of fiscal year 2023; or

(2) a member of the System who is in active service on or after July 1, 2022 and made contributions for at least one year.

(Added 2021, No. 114 (Adj. Sess.), § 21, eff. July 1, 2022.)

§ 1949b Postretirement adjustment to retirement allowance; formula; evaluation

(a) On or before September 1, 2027 and every three years thereafter, or at the request of the Board in conjunction with any proposed changes to the amortization schedule, the Board shall consider the intent set forth in subsection 1949a(a) of this chapter and evaluate whether to modify the postretirement adjustment formula or any other benefit that may accrue to the members of the System who are in active service on or before June 30, 2022 and made contributions for the duration of fiscal year 2023 and members in active service on or after July 1, 2022 and made contributions for at least one year. The evaluation shall only include a proposed benefit change if the Postretirement Adjustment Allowance Fund has sufficient assets to pay for the present value of that benefit.

(b) On or before January 15, 2028 and every three years thereafter, or following a request for an evaluation by the Board, the Board shall submit a report to the House and Senate Committees on Government Operations with the results of the evaluation described in subsection (a) of this section.

(Added 2021, No. 114 (Adj. Sess.), § 22, eff. July 1, 2022.)

§ 1950 Repealed

[Repealed]

1989, No. 169 (Adj. Sess.), § 11.

§ 1951 Group A members; limit on contributions

Contributions in the form of a deduction from compensation under section 1944 of this title shall cease for any Group A member who attains 25 years of creditable service and the member shall continue to accrue creditable service, without such a contribution, at the rate of one and two-thirds percent until the member retires.

(Added 1989, No. 169 (Adj. Sess.), § 9; amended 2017, No. 165 (Adj. Sess.), § 23.)

§ 1952 Repealed

[Repealed]

2013, No. 22, § 17, eff. July 1, 2013.

§ 1953 Prior service credit

A teacher who has ceased being a member upon reemployment is entitled to prior service credit upon depositing in the Pension Fund the contributions that would have been deducted from the teacher’s compensation had he or she remained a member with interest as set forth in section 1944 of this title. The teacher, in order to qualify for the prior service credit, shall also deposit in the Fund a sum equal to the contributions that would have been contributed by the State had the teacher remained a member with interest as set forth in section 1944 of this title.

(Added 2005, No. 104 (Adj. Sess.), § 1; amended 2007, No. 13, § 35; 2017, No. 165 (Adj. Sess.), § 24.)

Chapter 57 Labor Relations for Teachers and Administrators

Subchapter 1 General Provisions

§ 1981 Definitions

As used in this chapter unless the context requires otherwise:

(1) “Administrator” means any person so licensed by the Vermont Standards Board for professional educators, the majority of whose employed time in a school or a school district is devoted to serving as superintendent, assistant superintendent, assistant to the superintendent, supervisor, principal, or assistant principal.

(2) “Professional negotiations” means the meeting, conferring, consulting, discussing, and negotiating in good faith between a school board negotiations council and a teachers’ organization negotiations council or an administrators’ organization negotiations council to reach agreement.

(3) “School board” means the board of school directors of a school district or its equivalent in any independent elementary or secondary school.

(4) “School district” means any public school district or any independent elementary or secondary school within the State that directly or indirectly receives support from public funds.

(5) “Teacher” means any person licensed employable as a teacher by the Vermont Standards Board for Professional Educators who is not an administrator as defined in this section.

(6) A “teachers’ organization” or an “administrators’ organization” means an organization, committee, council, group, or separate unit thereof in which teachers or administrators participate and that exists, in whole or in part, for the purpose of professional negotiation.

(7) “Agency fee” means a fee deducted by an employer from the salary or wages of an employee who is not a member of an employee organization, which is paid to the employee organization that is the exclusive bargaining agent for the bargaining unit of the employee. The agency fee shall not exceed 85 percent of the amount payable as dues by members of the employee organization and shall be deducted in the same manner as dues are deducted from the salary or wages of members of the employee organization and shall be used to defray the costs of chargeable activities.

(8) “School board negotiations council” means, for a supervisory district, its school board, and, for school districts within a supervisory union or board of cooperative education services, the body comprising representatives designated by each school board within the supervisory union or board of cooperative education services and by the supervisory union board or board of cooperative education services to engage in professional negotiations with a teachers’ or administrators’ organization.

(9) “Teachers’ organization negotiations council” or “administrators’ organization negotiations council” means the body comprising representatives designated by each teachers’ organization or administrators’ organization within a supervisory district, supervisory union, or board of cooperative education services to act as its representative for professional negotiations.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 1989, No. 118, § 3; 1991, No. 24, § 11; 2005, No. 25, § 1; 2005, No. 214 (Adj. Sess.), § 4; eff. July 1, 2007; 2007, No. 82, § 29; 2009, No. 153 (Adj. Sess.), § 13; 2013, No. 37, § 10; 2013, No. 56, § 24, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 304, eff. Feb. 14, 2014; 2017, No. 74, § 22; 2019, No. 131 (Adj. Sess.), § 89; 2023, No. 168 (Adj. Sess.), § 9, eff. July 1, 2024.)

§ 1982 Rights

(a) Teachers shall have the right to or not to join, assist, or participate in any teachers’ organization of their choosing. However, teachers who choose not to join the teachers’ organization, recognized as the exclusive representative pursuant to section 1992 of this chapter, shall pay the agency fee in the same manner as teachers who choose to join the teachers’ organization pay membership fees. The teachers’ organization shall indemnify and hold the school board harmless from any and all claims stemming from the implementation or administration of the agency fee.

(b) Principals, assistant principals, and administrators other than superintendents and assistant superintendents shall have the right to or not to join, assist, or participate in any administrators’ organization or as a separate unit of any teachers’ organization of their choosing. However, subject to the provisions of subsection (d) of this section, administrators other than the superintendents and assistant superintendents who choose not to join the administrators’ organization, recognized as the exclusive representative pursuant to section 1992 of this chapter, shall pay the agency fee in the same manner as administrators who choose to join the administrators’ organization pay membership fees. The administrators’ organization agrees to indemnify and hold the school harmless from any and all claims stemming from the implementation or administration of the agency fee.

(c) The school board or any employee of the school board serving in any capacity or any other person or organization shall not interfere with, restrain, coerce, or discriminate in any way against or for any teacher or administrator engaged in activities protected by this legislation.

(d) A teachers’ or administrators’ organization shall not charge the agency fee unless it has established and maintained a procedure to provide nonmembers with:

(1) An audited financial statement that identifies the major categories of expenses and divides them into chargeable and nonchargeable expenses.

(2) An opportunity to object to the amount of the agency fee sought, and to place in escrow any amount reasonably in dispute.

(3) Prompt arbitration by an arbitrator selected jointly by the objecting fee payer and the teachers’ or administrators’ organization or pursuant to the rules of the American Arbitration Association to resolve any objection over the amount of the agency fee. The costs of arbitration shall be paid by the teachers’ or administrators’ organization.

(e) Nothing in this section shall require an employer to discharge an employee who does not pay the agency fee.

(f) A teacher or administrator who is a member of the teachers’ or administrators’ organization shall have the right to automatic membership dues deductions. Upon receipt of a signed authorization to commence automatic membership dues deductions from a teacher or administrator, the school board shall, as soon as practicable and in any event, not later than 30 calendar days after receiving the authorization, commence withholding from the teacher’s or administrator’s wages the amount of membership dues certified by the teachers’ or administrators’ organization. The school board shall transmit the amount withheld to the teachers’ or administrators’ organization on the same day as the teacher or administrator is paid. Nothing in this subsection shall be construed to require a member of a teachers’ or administrators’ organization to participate in automatic dues deduction.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2005, No. 25, § 2; 2013, No. 37, § 11; 2019, No. 180 (Adj. Sess.), § 6, eff. Jan. 1, 2021.)

§ 1983 Right to be heard

Nothing in this chapter shall prohibit any individual or organization representative, subject to reasonable rules of procedure that may be adopted by the school board, from appearing before the school board to be heard, but not to negotiate, on any matters of school district operation.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2013, No. 92 (Adj. Sess.), § 174, eff. Feb. 14, 2014.)

§ 1984 Access to new teachers or administrators in bargaining unit

(a) A school board shall provide a teachers’ or administrators’ organization that is the exclusive representative of the teachers or administrators in a bargaining unit with an opportunity to meet with each newly hired teacher or administrator in the bargaining unit to present information about the teachers’ or administrators’ organization.

(b)(1) The meeting shall occur during the new teacher’s or administrator’s orientation or, if the school board does not conduct an orientation for newly hired teachers or administrators, within 30 calendar days from the date on which the teacher or administrator was hired.

(2) If the meeting is not held during the new teacher’s or administrator’s orientation, it shall be held during the new teacher’s or administrator’s regular work hours and at his or her regular worksite or a location mutually agreed to by the school board and the teachers’ or administrators’ organization.

(3) The employee organization shall be permitted to meet with the employee for not less than 60 minutes.

(4) The teacher or administrator shall be paid for attending the meeting at his or her regular rate of pay.

(c)(1) Within 10 calendar days after hiring a new teacher or administrator, the school board shall provide the teachers’ or administrators’ organization, as appropriate, with his or her name, job title, worksite location, work telephone number and e-mail address, home address, personal e-mail address, home and personal cellular telephone numbers, and date of hire to the extent that the school board is in possession of such information.

(2) The teachers’ or administrators’ home address, personal e-mail address, and home and personal cellular telephone numbers shall be kept confidential by the employer and the teachers’ or administrators’ organization and shall be exempt from copying and inspection under the Public Records Act.

(d) The school board shall provide the teachers’ or administrators’ organization with not less than 10 calendar days’ notice of an orientation for newly hired teachers or administrators in its bargaining unit.

(Added 2019, No. 180 (Adj. Sess.), § 12, eff. Jan. 1, 2021.)

§ 1985 Annual list of teachers or administrators in bargaining unit

(a) Annually, or on a more frequent basis if mutually agreed to by the school board and the teachers’ or administrators’ organization, the school board shall provide the teachers’ or administrators’ organization that is the exclusive representative of a bargaining unit with a list of all teachers or administrators in that bargaining unit.

(b) The list shall include, as appropriate, each teacher’s or administrator’s name, work location, job classification, and contact information. As used in this section, “contact information” includes a teacher’s or administrator’s home address, personal e-mail address, and home and personal cellular telephone numbers to the extent that the school board is in possession of such information.

(c) To the extent possible, the list shall be in alphabetical order by last name and provided in electronic format.

(d) The list shall be kept confidential by the school board and the teachers’ or administrators’ organization and shall be exempt from copying and inspection under the Public Records Act.

(Added 2019, No. 180 (Adj. Sess.), § 16, eff. Jan. 1, 2021.)

§ 1986 Noninterference with right to testify

(a) Subject to subsection (b) of this section, no teacher, administrator, or other employee of a school district or supervisory union shall be subject to discipline by the school district or supervisory union for testifying before the General Assembly or a committee of the General Assembly or before the State Board of Education.

(b) A teacher, administrator, or other employee of a school district or supervisory union who testifies before the General Assembly or a committee of the General Assembly or before the State Board of Education shall not divulge information that is confidential to the school district or supervisory union or to its students or staff and may be disciplined by the individual’s employer for divulging such confidential information.

(c) A teacher, administrator, or other employee of a school district or supervisory union who testifies before the General Assembly or a committee of the General Assembly or before the State Board of Education shall, unless authorized by the individual’s employer to testify on the employer’s behalf, state for the record that the individual is not testifying on behalf of the individual’s employer.

(Added 2021, No. 111 (Adj. Sess.), § 2, eff. May 11, 2022.)

Subchapter 2 Bargaining Agent

§ 1991 Selection of representation

(a) Teachers and administrators may select organizations to represent them on their negotiations council in collective negotiations with the school board negotiations council. The school board shall recognize an organization as the exclusive representative of the teachers or of the administrators in the school district when that organization has proved its claim to sole and exclusive representative status of the respective group as provided in this chapter. The superintendent, the assistant superintendent, and the principal shall not serve as negotiating agents for the teachers’ organization.

(b) When close or disputed questions of eligibility to vote and inclusion in the unit to be represented by the teachers’ organization arise, the general principle to be adhered to shall be that eligibility to vote and inclusion in that negotiating unit will be limited to all teachers in the school district under contract and actually engaged in full-time or part-time positions that are not that of administrator.

(c) The organizations selected to represent teachers or administrators shall represent without discrimination or prejudice all of those eligible for inclusion in the negotiating unit without regard to organizational affiliation or membership.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 30; 2013, No. 92 (Adj. Sess.), § 175, eff. Feb. 14, 2014.)

§ 1992 Referendum procedure for representation

(a)(1) An organization purporting to represent a majority of all of the teachers or administrators employed by the school board may be recognized by the school board without the necessity of a referendum upon the submission of a petition bearing the valid signatures of a majority of the teachers or administrators employed by that school board. The school board and the organization purporting to represent a majority of the teachers or administrators shall, within 10 business days after the petition is submitted, agree on an impartial third party to examine the petition and determine whether a majority of the teachers or administrators support the organization. If the parties fail to agree on an impartial third party within 10 business days, the Vermont Labor Relations Board shall examine the petition and determine whether a majority of the teachers or administrators support the organization. If the impartial party or the Board determines that a majority of the teachers or administrators support the organization, it shall certify the organization as the exclusive representative of the teachers or administrators.

(2)(A)(i) An organization seeking to represent the teachers or administrators employed by a school board may petition the school board for a list of the teachers or administrators in the proposed bargaining unit.

(ii) An organization or group of teachers or administrators, or any person purporting to act on their behalf, that is seeking to demonstrate that the current exclusive representative of the teachers or administrators is no longer supported by a majority of the teachers or administrators employed by that school board shall not be entitled to obtain a list of the employees in the bargaining unit pursuant to this subdivision (a)(2).

(B) Unless the parties agree to a longer period, within five business days after receiving the petition, the school board shall file with the organization a list of the names and job titles of the teachers or administrators in the proposed bargaining unit. To the extent possible, the list of employees shall be in alphabetical order by last name and provided in electronic format.

(b) Certification of a negotiating unit as exclusive representative shall be valid and not subject to challenge by referendum petition or otherwise for the remainder of the fiscal year in which the certification occurs and for an additional period of 12 months after final adoption of the budget for the succeeding fiscal year and shall continue thereafter until a new referendum is called for.

(c)(1)(A) A secret ballot referendum shall be held not more than 21 calendar days after 20 percent of the teachers or administrators employed by the school board present a petition requesting a referendum on the matter of representation, except during a period of prior certification, as provided pursuant to subsection (b) of this section.

(B) The parties may mutually agree to extend the time to hold the election set forth in subdivision (A) of this subdivision (1).

(C) Any organization interested in representing teachers or administrators in the school district shall have the right to appear on the ballot by submitting a petition supported by ten percent or more of the teachers or administrators in the school district.

(2)(A) Unless the school board and the organization agree to a longer period, within two business days after the petition is presented, the school board shall file with the organization that will be named on the ballot a list of the teachers or administrators in the bargaining unit.

(B) The list shall include, as appropriate, each teacher’s or administrator’s name, work location, job classification, and contact information. As used in this subdivision (2), “contact information” includes a teacher’s or administrator’s home address, personal email address, and home and personal cellular telephone numbers to the extent that the school board is in possession of such information.

(C) To the extent possible, the list of teachers or administrators shall be in alphabetical order by last name and provided in electronic format.

(D) The list shall be kept confidential by the school board and the organization and shall be exempt from copying and inspection under the Public Records Act.

(E) Failure to file the list within the time required pursuant to subdivision (A) of this subdivision (2) shall be an unfair labor practice and may be grounds for the Vermont Labor Relations Board to set aside the results of the referendum if an unfair labor practice charge is filed not more than 10 business days after the referendum.

(d) In the interest of expediting the referendum and minimizing the cost thereof, the petitioning party or parties and the school board may agree together to conduct cooperatively the referendum themselves. Alternatively, the parties may select an impartial person or agency to conduct or aid in the conducting of the referendum. Failing agreement among all interested parties on the conduct of the referendum, any of the petitioning parties or the school board may request that the referendum be conducted with the aid and assistance of the American Arbitration Association or its designee. The American Arbitration Association or its designee shall have the responsibility for making decisions on any and all matters in dispute regarding the mechanics of the referendum, eligibility, and other necessary decisions relating to the conduct of the referendum.

(e) All costs incurred in conducting the referendum shall be borne jointly by the school board and the petitioners.

(f) The ballot used in any referendum shall include “no representation” among the choices. The organization designated by the majority of the votes cast shall be the negotiating representative. If the majority is “no representation,” then the school board may not recognize any representative for at least 12 months thereafter. If no choice receives a majority vote, then a run-off referendum shall be conducted among the two choices receiving the greatest number of votes.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2019, No. 131 (Adj. Sess.), § 90; 2019, No. 180 (Adj. Sess.), § 2, eff. Jan. 1, 2021; 2023, No. 117 (Adj. Sess.), § 5, eff. July 1, 2024.)

Subchapter 3 Negotiations

§ 2001 Good faith

The negotiations councils of the school board and of the recognized teachers’ or administrators’ organization shall meet together at reasonable times, upon request of either party, and shall negotiate in good faith on all matters properly before them under the provisions of this chapter.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 31.)

§ 2002 Access to materials and facilities

The school board shall permit teachers, administrators, and their respective organizations access at reasonable times to areas in which teachers and administrators work, and to use institutional bulletin boards, mail boxes, or other communication media subject to reasonable regulation by the school board, and to use school facilities at reasonable times for the purpose of meetings concerned with the exercise of rights guaranteed by this chapter.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969.)

§ 2003 Time to begin

The teacher or administrator organizations holding exclusive negotiating rights shall make a request for commencement of negotiations either to their school board or to the school board negotiations council no later than 120 days prior to the earliest school district annual meeting conducted within the supervisory union.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 32.)

§ 2004 Agenda

(a) The school board, through its negotiations council, shall, upon request, negotiate with representatives of the teachers’ or administrators’ organization negotiations council on matters of salary, related economic conditions of employment, the manner in which it will enforce an employee’s obligation to pay the agency fee, procedures for processing complaints and grievances relating to employment, and any mutually agreed-upon matters not in conflict with the statutes and laws of the State of Vermont.

(b) As used in this section, the terms “salary” and “related economic conditions of employment” shall not include health care benefits or coverage other than stand-alone vision and dental benefits. Health care benefits and health coverage, excluding stand-alone vision and dental benefits but including health reimbursement arrangements and health savings accounts, shall not be subject to collective bargaining pursuant to this chapter, but shall be determined pursuant to chapter 61 of this title.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2005, No. 25, § 3; 2007, No. 82, § 33; 2013, No. 37, § 12; 2017, No. 74, § 23; 2018, No. 11 (Sp. Sess.), § H.19, eff. Jan. 1, 2020.)

§ 2005 Written agreement

The negotiations councils for the school board and the teachers’ or administrators’ organization shall enter into a written agreement or agreements incorporating matters agreed to in negotiation. The written agreement shall incorporate by reference the terms of the agreement entered into pursuant to chapter 61 of this title.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 34; 2018, No. 11 (Sp. Sess.), § H.20, eff. Jan. 1, 2020; 2019, No. 131 (Adj. Sess.), § 91.)

§ 2006 Mediator

If, after negotiation has taken place on all matters properly before them, the negotiations councils for the school board and teachers’ or administrators’ organization are unable to reach agreement on specific negotiable items, they may jointly agree upon the services and person of a mediator for the purpose of assisting them in reconciling their differences and resolving the controversy on terms that are mutually acceptable. If agreement cannot be reached upon the person of a mediator, either party may request mediation upon any and all unresolved issues to be conducted by the American Arbitration Association or its designee. The parties shall meet with the mediator and make such information available as required.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 35.)

§ 2007 Fact-finding committee

(a) If mediation fails to resolve outstanding differences or is not requested and a continuing disagreement persists, either party may, after negotiation on all matters properly before them, request that any or all unresolved issues be submitted to a fact-finding committee by notifying the other party of their intention and setting forth in writing the issues to be submitted to fact-finding.

(b) The fact-finding committee, which shall be activated as soon as practicable upon request, shall be composed of one member selected by the school board negotiations council, one member selected by the negotiations council for the teachers’ or administrators’ organization, and one member who shall serve as chair, to be chosen by the other two members. In the event that agreement cannot be reached on a third member for the fact-finding committee, the American Arbitration Association shall be asked to appoint the third member.

(c) The fact-finding committee shall convene as soon as practicable after its appointment, hold informal hearings as necessary, and provide adequate opportunity to all parties to testify fully on, and present evidence regarding, their respective positions. All parties to the dispute shall furnish the fact-finding committee upon its request all records, papers, and information in their possession pertaining to any matter properly in issue before the fact-finding committee. The fact-finding committee shall make a written report and shall deliver it to both parties recommending a reasonable basis for the settlement of the disagreement within 30 days after the appointment of all members of the committee.

(d) The report of the fact-finding committee shall be advisory only and shall not be binding on either party. The report shall be made public by the fact-finding committee if the issues in dispute have not been resolved within ten days of the delivery of the report.

(e) All expenses of fact-finding and mediation shall be borne jointly by the parties to the dispute.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2007, No. 82, § 36.)

§ 2008 Finality of decisions

All decisions of the school board regarding matters in dispute in negotiations shall, after full compliance with this chapter, be final.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969.)

§ 2009 Delegation of authority

The negotiations councils for school boards and for teachers’ and administrators’ organizations are empowered to delegate in whole or in part the responsibility for negotiation of the collective agreement to any persons they may choose. However, final ratification of any agreement on behalf of a school board shall remain the sole responsibility of the school board, unless the school board has agreed to binding interest arbitration pursuant to subchapter 4 of this chapter.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 1991, No. 196 (Adj. Sess.), § 3; 2007, No. 82, § 37.)

§ 2010 Injunctions

No restraining order or temporary or permanent injunction shall be granted in any case brought with respect to any action taken by a representative organization or an official thereof or by a school board or representative thereof in connection with or relating to pending or future negotiations, except on the basis of findings of fact made by a court of competent jurisdiction after due hearing prior to the issuance of the restraining order or injunction that the commencement or continuance of the action poses a clear and present danger to a sound program of school education that in the light of all relevant circumstances it is in the best public interest to prevent. Any restraining order or injunction issued by a court as provided in this section shall prohibit only a specific act or acts expressly determined in the findings of fact to pose a clear and present danger.

(Added 1969, No. 127, § 2, eff. Sept. 1, 1969; amended 2019, No. 131 (Adj. Sess.), § 92.)

Subchapter 4 Binding Interest Arbitration

§ 2021 Negotiated binding interest arbitration

(a) Arbitration shall only occur if the recognized organization and one or more of the school boards agree in writing to submit to binding arbitration for one or more issues remaining in dispute. An agreement to accept binding interest arbitration may not be revoked and shall apply only to the parties to the arbitration.

(b) The parties may mutually agree to accept binding interest arbitration at any time after impasse is reached. If the parties have neither accepted all recommendations of a fact-finder nor reached an independent agreement on all issues in dispute, either the school board or the recognized organization may request binding interest arbitration by written notice to the other party. The parties shall mutually agree on one of the following limitations on the jurisdiction of the arbitrator:

(1) Arbitration under which the award is confined to a choice between one of the following single packages:

(A) The last best offer of the school board.

(B) The last best offer of the recognized organization.

(2) Arbitration under which the award is confined to a choice between one of the following on an issue-by-issue basis:

(A) The last best offer of the school board.

(B) The last best offer of the recognized organization.

(c) A strike, which shall have the same meaning as provided in 21 V.S.A. § 1722(16), shall be prohibited if it occurs after both parties have voluntarily submitted a dispute to final and binding arbitration or after a decision or award has been issued by the arbitrator. A school board may petition for an injunction or other appropriate relief from the Superior Court in the county in which such strike in violation of this section is occurring or is about to occur.

(d) If any provision of this subchapter is inconsistent with any other provision of law governing arbitration, this subchapter shall govern.

(Added 1991, No. 196 (Adj. Sess.), § 1; amended 2007, No. 82, § 38; 2019, No. 131 (Adj. Sess.), § 93.)

§ 2022 Selection and decision of arbitrator

(a) When arbitration has been invoked in accordance with this subchapter, the parties shall within five days mutually select a single arbitrator and each party shall state its final offer on all disputed issues. If the parties fail to select an arbitrator within five days, they shall request the services of the American Arbitration Association for the appointment of an arbitrator.

(b) Within 90 days after the appointment of the arbitrator or another period of time agreed upon by the parties, he or she shall hold a hearing and shall decide all disputed issues within his or her jurisdiction as defined by this chapter, and this award shall become an agreement of the parties.

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2023 Jurisdiction of arbitrator

(a) The parties may reach partial agreement on some issues or accept a fact-finder’s recommendations on some issues. The arbitrator shall have the power to determine all issues remaining in dispute involving wages, hours, and conditions of employment as defined by this chapter and any other mutually agreed upon matters not in conflict with law.

(b) At any time prior to the issuance of a decision by the arbitrator, the parties may jointly file with the arbitrator any stipulations setting forth contract provisions that both parties agree to accept. The parties shall submit to the arbitrator their respective positions on all issues in dispute between them in the form of a last best offer.

(c) The arbitrator shall resolve all remaining disputed issues in his or her jurisdiction in accordance with the agreement of the parties. The arbitrator shall incorporate in a written decision the resolution of each disputed issue and an explanation of how the total cost of all offers was considered.

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2024 Judicial appeal

Upon application of a party, a Superior Court shall vacate an award on the same grounds as set forth in 21 V.S.A. § 1733(d) and according to the same procedures as set forth in 21 V.S.A. § 1733(e).

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2025 Factors to be considered by arbitrator

(a) At the hearing, each party shall have full opportunity to submit all relevant evidence, to introduce relevant documents and written material, and to argue on behalf of its positions. At the hearing, both parties may present evidence regarding the financial capacity of the school district. The arbitrator shall preside over such hearing.

(b) In reaching a decision, the arbitrator shall give weight to the factors listed in subsection (a) of this section, plus the following factors:

(1) the lawful authority of the school board;

(2) stipulations of the parties;

(3) the interest and welfare of the public and the financial ability of the school board to pay for increased costs of public services, including the cost of labor;

(4) comparisons of the wages, hours, and conditions of employment of the employees involved in the dispute with the wages, hours, and conditions of employment of other employees performing similar services in public schools in comparable communities or in private employment in comparable communities;

(5) the average consumer prices for goods and services commonly known as the cost of living;

(6) the overall compensation presently received by the employees, including direct wages, fringe benefits, and continuity conditions and stability of employment, and all other benefits received; and

(7) prior negotiations and existing conditions of other school and municipal employees.

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2026 Notice of award

The arbitrator shall file one copy of the decision with each city or town clerk in the school district involved, the school board, and the recognized organization. The decision of the arbitrator shall be final and binding upon the parties to the dispute.

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2027 Fees and expenses

The parties shall share equally the fee of the arbitrator and all other mutually incurred costs incidental to the arbitration.

(Added 1991, No. 196 (Adj. Sess.), § 1.)

§ 2028 Contract ratification annual vote

Annually, the employees of the bargaining unit shall meet and discuss whether employees who have chosen not to join the employee organization shall be allowed to vote on the ratification of any collective bargaining agreement entered into pursuant to this chapter. After discussion, employees who are members of the employee organization shall vote on whether to allow employees who have chosen not to join the employee organization to vote on the ratification of any collective bargaining agreement.

(Added 2013, No. 37, § 13a.)

Chapter 59 Interstate Agreement on Qualification of Educational Personnel

Subchapter 1 Interstate Agreement on Qualification of Educational Personnel

§ 2041 Purpose, findings, and policy—Article I
  1. To improve their respective school systems by utilizing the teacher or other professional educational person wherever educated, declare that it is the policy of each of them, on the basis of cooperation with one another, to take advantage of the preparation and experience of such persons wherever gained, thereby serving the best interests of society, of education, and of the teaching profession. It is the purpose of this Agreement to provide for the development and execution of such programs of cooperation as will facilitate the movement of teachers and other professional educational personnel among the States party to it and to authorize specific interstate educational personnel contracts to achieve that end.

  2. The party States find that included in the large movement of population among all sections of the nation are many qualified educational personnel who move for family and other personal reasons but who are hindered in using their professional skill and experience in their new locations. Variations from State to State in requirements for qualifying educational personnel discourage such personnel from taking the steps necessary to qualify in other States. As a consequence, a significant number of professionally prepared and experienced educators is lost to our school systems. Facilitating the employment of qualified educational personnel, without reference to their States of origin, can increase the available educational resources. Participation in this Compact can increase the availability of educational manpower.

(Added 1969, No. 8, § 1 (Art. I).)

§ 2042 Definitions—Article II

As used in this Agreement and contracts made pursuant to it, unless the context clearly requires otherwise:

  1. “Educational personnel” means persons who must meet requirements pursuant to State law as a condition of employment in educational programs.

  2. “Designated State official” means the education official of a State selected by that State to negotiate and enter into, on behalf of his or her State, contracts pursuant to this Agreement.

  3. “Accept,” or any variant thereof, means to recognize and give effect to one or more determinations of another State relating to the qualifications of educational personnel in lieu of making or requiring a like determination that would otherwise be required by or pursuant to the laws of a receiving State.

  4. “State” means a State, territory, or possession of the United States; the District of Columbia; or the Commonwealth of Puerto Rico.

  5. “Originating State” means a State (and the subdivision thereof, if any) whose determination that certain educational personnel are qualified to be employed for specific duties in schools is acceptable in accordance with the terms of a contract made pursuant to Article III.

  6. “Receiving State” means a State (and the subdivisions thereof) which accept educational personnel in accordance with the terms of a contract made pursuant to Article III.

(Added 1969, No. 8, § 1 (Art. II).)

§ 2043 Interstate educational personnel contracts—Article III
  1. The designated State official of a party State may make one or more contracts on behalf of his or her State with one or more other party States providing for the acceptance of educational personnel. Any such contract for the period of its duration shall be applicable to and binding on the States whose designated state officials enter into it, and the subdivisions of those States, with the same force and effect as if incorporated in this Agreement. A designated state official may enter into a contract pursuant to this Article only with States in which he or she finds that there are programs of education, licensing standards, or other acceptable qualifications that assure preparation or qualification of educational personnel on a basis sufficiently comparable, even though not identical to that prevailing in his or her own State.

  2. Any such contract shall provide for:

(a) Its duration.

(b) The criteria to be applied by an originating State in qualifying educational personnel for acceptance by a receiving State.

(c) Such waivers, substitutions, and conditional acceptances as shall aid the practical effectuation of the contract without sacrifice of basic educational standards.

(d) Any other necessary matters.

  1. No contract made pursuant to this Agreement shall be for a term longer than five years but any such contract may be renewed for like or lesser periods.

  2. Any contract dealing with acceptance of educational personnel on the basis of their having completed an educational program shall specify the earliest date or dates on which originating state approval of the program or programs involved can have occurred. No contract made pursuant to this Agreement shall require acceptance by a receiving State of any persons qualified because of successful completion of a program prior to January 1, 1954.

  3. The license or other acceptance of a person who has been accepted pursuant to the terms of a contract shall not be revoked or otherwise impaired because the contract has expired or been terminated. However, any license or other qualifying document may be revoked or suspended on any ground which would be sufficient for revocation or suspension of a license or other qualifying document initially granted or approved in the receiving State.

  4. A contract committee composed of the designated state officials of the contracting States or their representatives shall keep the contract under continuous review, study means of improving its administration, and report no less frequently than once a year to the heads of the appropriate education agencies of the contracting States.

(Added 1969, No. 8, § 1 (Art. III); amended 1989, No. 118, § 3.)

§ 2044 Approved and accepted programs—Article IV
  1. Nothing in this Agreement shall be construed to repeal or otherwise modify any law or regulation of a party State relating to the approval of programs of educational preparation having effect solely on the qualification of educational personnel within that State.

  2. To the extent that contracts made pursuant to this Agreement deal with the educational requirements for the proper qualification of educational personnel, acceptance of a program of educational preparation shall be in accordance with such procedures and requirements as may be provided in the applicable contract.

(Added 1969, No. 8, § 1 (Art. IV).)

§ 2045 Interstate cooperation—Article V

The party States agree that:

  1. They will, so far as practicable, prefer the making of multilateral contracts pursuant to Article III of this Agreement.

  2. They will facilitate and strengthen cooperation in interstate licensing and other elements of educational personnel qualification and for this purpose shall cooperate with agencies, organizations, and associations interested in licensing and other elements of educational personnel qualification.

(Added 1969, No. 8, § 1 (Art. V); amended 1989, No. 118, § 3.)

§ 2046 Agreement evaluation—Article VI

The designated state officials of any party States may meet from time to time as a group to evaluate progress under the Agreement and to formulate recommendations for changes.

(Added 1969, No. 8, § 1 (Art. VI).)

§ 2047 Other arrangements—Article VII

Nothing in this Agreement shall be construed to prevent or inhibit other arrangements or practices of any party State or States to facilitate the interchange of educational personnel.

(Added 1969, No. 8, § 1 (Art. VII).)

§ 2048 Effect and withdrawal—Article VIII
  1. This Agreement shall become effective when enacted into law by two States. Thereafter it shall become effective as to any State upon its enactment of this Agreement.

  2. Any party State may withdraw from this Agreement by enacting a statute repealing the same, but no such withdrawal shall take effect until one year after the Governor of the withdrawing State has given notice in writing of the withdrawal to the Governors of all other party States.

  3. No withdrawal shall relieve the withdrawing State of any obligation imposed upon it by a contract to which it is a party. The duration of contracts and the methods and conditions of withdrawal therefrom shall be those specified in their terms.

(Added 1969, No. 8, § 1 (Art. VIII).)

§ 2049 Construction and severability—Article IX

This Agreement shall be liberally construed so as to effectuate the purposes thereof. The provisions of this Agreement shall be severable and if any phrase, clause, sentence, or provision of this Agreement is declared to be contrary to the constitution of any State or of the United States, or the application thereof to any Government, agency, person, or circumstance is held invalid, the validity of the remainder of this Agreement and the applicability thereof to any Government, agency, person, or circumstance shall not be affected thereby. If this Agreement shall be held contrary to the constitution of any State participating therein, the Agreement shall remain in full force and effect as to the State affected as to all severable matters.

(Added 1969, No. 8, § 1 (Art. IX).)

Subchapter 2 Provisions Relating to Interstate Agreement on Qualifications of Educational Personnel

§ 2061 Powers of Secretary of Education

The “designated State official” for this State shall be the Secretary of Education. The Secretary shall enter into contracts pursuant to Article III of the Agreement only with the approval of the specific text thereof by the State Board.

(Added 1969, No. 8, § 2; 2013, No. 92 (Adj. Sess.), § 177, eff. Feb. 14, 2014.)

§ 2062 Repealed

[Repealed]

2003, No. 122 (Adj. Sess.), § 294(w)(3).

Chapter 61 Commission on Public School Employee Health Benefits

§ 2101 Definitions

As used in this chapter:

(1) “Participating employee” means a school employee who is eligible for and has elected to receive health benefit coverage through a school employer.

(2) “School employee”:

(A) includes the following individuals:

(i) an individual employed by a school employer as a teacher or administrator as defined in section 1981 of this title;

(ii) a municipal school employee as defined in 21 V.S.A. § 1722;

(iii) an individual employed as a supervisor as defined in 21 V.S.A. § 1502;

(iv) a confidential employee as defined in 21 V.S.A. § 1722;

(v) a certified employee of a school employer; and

(vi) any other permanent employee of a school employer not covered by subdivisions (i)-(v) of this subdivision (2); and

(B) notwithstanding subdivision (A) of this subdivision (2), excludes individuals who serve in the role of superintendent.

(3) “School employer” means a supervisory union or school district as those terms are defined in section 11 of this title, or a board of cooperative education services formed pursuant to chapter 10 of this title.

(Added 2018, No. 11 (Sp. Sess.), § H.18; amended 2021, No. 7, § 1, eff. April 8, 2021; 2023, No. 168 (Adj. Sess.), § 11, eff. July 1, 2024.)

§ 2102 Commission on Public School Employee Health Benefits created

(a) Commission created. There is created an independent commission to be called the Commission on Public School Employee Health Benefits (Commission) to determine, in accordance with section 2103 of this chapter, the amounts of the premiums and out-of-pocket expenses for school employee health benefits that shall be borne by school employers and by participating employees.

(b) Composition and appointment.

(1) The Commission shall have 10 members, of whom five shall be representatives of school employees and five shall be representatives of school employers.

(2)(A) The representatives of school employees shall be appointed as follows:

(i) four members appointed by the labor organization representing the greatest number of school employees in this State; and

(ii) one member appointed by the labor organization representing the second-greatest number of school employees in this State.

(B) The five representatives of school employers shall be appointed by the organization representing the majority of the public school boards in this State.

(C) The appointing authorities shall select appointees who have an understanding of health care and employer-employee relations and who demonstrate a willingness to work collaboratively.

(D) The term of each member of the Commission shall be six years, provided that of the members first appointed by the labor organization described in subdivision (A)(i) of this subdivision (2), one appointee shall serve a term of two years and one appointee shall serve a term of four years, and of the members first appointed by the organization representing the majority of the public school boards in this State, one appointee shall serve a term of two years and one appointee shall serve a term of four years.

(3) In the event of a vacancy, the appointing authority of the member whose seat becomes vacant shall appoint a successor to serve out the remainder of the member’s term.

(c) Chairs. The Commission shall be chaired jointly by one member selected biennially by the representatives of school employees and one member selected biennially by the representatives of school employers.

(d) Removal of Commission members. Members of the Commission may be removed by the appointing authority of the member without cause.

(e) Decisions. All decisions of the Commission shall require the votes of a majority of the representatives of school employees and a majority of the representatives of school employers.

(f) Compensation. Commission members shall be entitled to receive per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010 for not more than 20 meetings per year.

(g) Release time. A school district that employs a member of the Commission, or an alternate member of the Commission under subsection (j) of this section, who represents school employees or school employers shall grant the Commission member time off as necessary for the member to attend meetings of the Commission.

(h) Staffing and expenses. The Commission may hire staff as it deems necessary to carry out its duties under this chapter. Compensation for Commission staff and administrative expenses of the Commission shall be shared equally by school employers and school employees. The representatives of school employers and the representatives of school employees shall equitably apportion their share of the costs of compensation and administrative expenses among their members.

(i) Rulemaking. The Commission may adopt rules or procedures, or both, pursuant to 3 V.S.A. chapter 25 as needed to carry out its duties under this chapter.

(j) Alternate members.

(1) Four alternate members may be appointed to the Commission.

(2) Up to two alternate members may be appointed by representatives of school employees and up to two members may be appointed by representatives of school employers.

(3) The term of each alternate member, if appointed, shall be six years.

(4) An alternate member may serve temporarily in the role as a member appointed under subsection (b) of this section only in the absence of an appointed member and shall not otherwise have participation or voting rights in Commission business.

(5) An alternate member shall be appointed to be a full member of the Commission by the alternate member’s appointing authority upon the resignation or removal of a full member.

(6) In the event of a vacancy of an alternate member, the appointing authority of the alternate member shall appoint a successor to serve out the remainder of the alternate member’s term.

(7) Alternate members may be removed by the appointing authority of the alternate member without cause.

(k) Funding. The Commission shall request the Governor to include in the Governor’s annual budget a minimum of $35,000.00 appropriated to the Agency of Education for per diem compensation and reimbursement of expenses for members of the Commission. Any unencumbered appropriation shall revert to the General Fund in the year following the conclusion of an agreement under subdivision 2104(b)(1) of this title.

(Added 2018, No. 11 (Sp. Sess.), § H.18; amended 2021, No. 7, § 2, eff. April 8, 2021.)

§ 2103 Duties of the Commission

(a) The Commission shall determine the percentage of the premium for individual, two-person, parent-child, and family coverage under a health benefit plan that shall be borne by each school employer and the percentage that shall be borne by participating employees.

(1) The premium responsibility percentages shall remain in effect for the entire plan year.

(2) Each school employer shall be responsible for paying, on behalf of all of its participating employees, the applicable percentages of premium costs as determined by the Commission.

(3) [Repealed.]

(b)(1) The Commission shall determine the amount of participating employees’ calendar year out-of-pocket expenses for which the school employer and the participating employees shall be responsible, and whether school employers shall establish a health reimbursement arrangement, a health savings account, both, or neither, for their participating employees.

(2) The Commission also shall determine the extent to which the employer or employee shall bear first dollar responsibility for out-of-pocket expenses if using a health reimbursement arrangement and whether the balance in a participating employee’s health reimbursement arrangement shall roll over from year to year.

(3) [Repealed.]

(c) The Commission may make recommendations regarding health benefit plan design to any intermunicipal insurance association that offers health benefit plans to entities providing educational services pursuant to 24 V.S.A. chapter 121, subchapter 6.

(d) The Commission shall not make any determinations regarding school employer or participating employee responsibilities with respect to stand-alone vision or dental benefits.

(e) The Commission may negotiate a statewide grievance procedure for disputes concerning public school employee health benefits.

(f) In no case shall a school employee receive cash in lieu of receipt of health care benefits from one school employer while simultaneously receiving health care benefits from the same or another school employer.

(g) Accommodations shall be made for school employees whose workload is shared between more than one school employer, and who may not otherwise qualify for health care benefits from only one school employer. The affected school employers shall determine the proportionate portion of the shared costs of the health benefits.

(Added 2018, No. 11 (Sp. Sess.), § H.18; amended 2021, No. 7, § 4, eff. April 8, 2021.)

§ 2104 Negotiation; time to begin; good faith; written agreement

(a)(1) The Commission shall commence negotiation of the matters set forth in subsections 2103(a) and (b) of this chapter not later than April 1 of the year before the existing agreement pursuant to this section is set to expire. On or before October 1 of the year prior to commencement of bargaining, the Commission shall request from the parties any data and information that it anticipates needing for the negotiation in a common format, and on or before February 1 of the year of bargaining, the parties shall submit to the Commission the information requested.

(2) The Commission shall meet together at reasonable times at the call of the Chairs and shall negotiate in good faith on all matters set forth in subsections 2103(a) and (b) of this chapter.

(3)(A) The Commission shall select a person to serve as a fact finder to assist it in resolving any matters remaining in dispute in the event that the Commission is unable to reach an agreement by August 1. The fact finder shall be selected by a vote of a majority of the representatives of school employees and of a majority of the representatives of school employers. If the Commission cannot agree on a fact finder by April 5, the American Arbitration Association shall be asked to appoint the fact finder.

(B)(i) The Commission shall mutually agree on an arbitrator by April 5 to decide all matters remaining in dispute if it is unable to reach an agreement within 30 days after receiving the fact finder’s report.

(ii) If the Commission is unable to mutually agree on an arbitrator, it shall either request the Vermont Labor Relations Board (VLRB) to decide all matters remaining in dispute or form a three-member panel of arbitrators to be selected as follows:

(I) One arbitrator shall be selected by the representatives of school employees.

(II) One arbitrator shall be selected by the representatives of school employers.

(III) The Commission shall request the services of the American Arbitration Association for the appointment of the third arbitrator.

(b)(1) The Commission shall enter into a written agreement incorporating all matters agreed to in negotiation.

(2) The terms of the agreement or the VLRB or arbitration award shall be incorporated by reference into all collective bargaining agreements for school employees.

(c) The term of each agreement shall be negotiated by the Commission but shall not be less than two years.

(Added 2018, No. 11 (Sp. Sess.), § H.18; amended 2021, No. 7, § 5, eff. April 8, 2021; 2021, No. 7, § 5a, eff. Jan. 1, 2022.)

§ 2105 Dispute resolution

(a)(1) If the Commission is unable to reach agreement by August 1, the Commission shall meet with the fact finder selected pursuant to section 2104 of this chapter not later than August 15.

(2) The fact finder may schedule and hold additional meetings with the Commission as necessary. The Commission shall furnish the fact finder with all records, papers, and information in its possession pertaining to any matter remaining in dispute.

(3) The fact finder shall, before issuing his or her decision, attempt to mediate the matters remaining in dispute.

(4) If the mediation fails to produce an agreement, the fact finder shall, on or before September 15, submit a written report to the Commission recommending a reasonable basis for the settlement of the matters remaining in dispute.

(b)(1) If the Commission is unable to resolve all matters remaining in dispute within 30 days after receiving the fact finder’s report, the Commission shall submit the matters remaining in dispute to the VLRB, arbitrator, or arbitrators selected pursuant to section 2104 of this chapter for resolution.

(2) The representatives of school employees and the representatives of school employers shall submit to the VLRB, arbitrator, or arbitrators their last best offer on all issues remaining in dispute prior to the VLRB or arbitration hearing. The VLRB, arbitrator, or arbitrators shall select one of the last best offers without amendment, submitted by the parties prior to the VLRB or arbitration hearing in its entirety without amendment. The parties shall not be permitted to modify their last best offers post hearing. Prior to the issuance of the decision of the VLRB, arbitrator, or arbitrators, nothing shall prohibit the parties from settling the matters in dispute.

(3)(A) The VLRB, arbitrator, or arbitrators shall hold a hearing on or before November 15 at which the Commission members shall submit all relevant evidence, documents, and written material, including a cost estimate for the term of the proposal with a breakdown of costs borne by employers and costs borne by employees, and each member may submit oral or written testimony in support of his or her position on any undecided issue that is subject to arbitration.

(B) In reaching a decision, the VLRB, arbitrator, or arbitrators shall give weight to the evidence, documents, written material, and arguments presented, as well as the following factors:

(i) the interests and welfare of the public;

(ii) the financial ability of the Education Fund and school districts across the State to pay for the costs of health care benefits and coverage;

(iii) comparisons of the health care benefits of school employees with the health care benefits of similar employees in the public and private sectors in Vermont;

(iv) the average consumer prices for goods and services commonly known as the cost of living; and

(v) prior and existing health care benefits and coverage for school employees.

(4) The VLRB, arbitrator, or arbitrators shall issue a written decision within 30 days after the hearing, providing a full explication of the basis for the decision. The decision of the VLRB, arbitrator, or arbitrators shall be final and binding upon the Commission and all school employees and school employers. The decision shall not be subject to ratification.

(5) Upon the petition of a majority of the employer or the employee members within not more than 15 days following the VLRB or arbitration decision, the Vermont Supreme Court, in the case of a VLRB decision, or a Superior Court in the case of an arbitration decision, shall vacate the decision if:

(A) it was procured by corruption, fraud, or other undue means;

(B) there was evident partiality or prejudicial misconduct by the VLRB or arbitrator or by individual members of the VLRB or arbitration panel;

(C) the VLRB, arbitrator, or arbitrators exceeded its or their power or rendered a decision requiring a person to commit an act or engage in conduct prohibited by law; or

(D) there is an absence of substantial evidence on the record as a whole to support the decision.

(6) At any time prior to the issuance of a decision by the VLRB, arbitrator, or arbitrators, the Commission may notify the VLRB, arbitrator, or arbitrators of any additional issues on which a majority of the representatives of school employees and of the representatives of school employers have reached agreement.

(7) If any provision of this subsection is inconsistent with any other provision of law governing arbitration, this subsection shall govern.

(c) The VLRB, arbitrator, or arbitrators shall have the authority to address complaints that either party has engaged in or is engaging in unfair bargaining practices, including a refusal to bargain in good faith. If the VLRB, arbitrator, or arbitrators find upon a preponderance of the evidence that a party has engaged in or is engaging in any unfair bargaining practice, the VLRB, arbitrator, or arbitrators may include in the decision a remedy for the unfair bargaining practice that is consistent with the provisions of 21 V.S.A. § 1727(d).

(Added 2018, No. 11 (Sp. Sess.), § H.18; amended 2021, No. 7, § 6, eff. April 8, 2021; 2021, No. 7, § 6a, eff. Jan. 1, 2022.)

§ 2106 Strikes and contract imposition prohibited

(a) School employees and the representatives of school employees shall be prohibited from engaging in a strike, as defined by 21 V.S.A. § 1722(16), in relation to the negotiation of an agreement pursuant to this chapter.

(b) The representatives of school employers shall be prohibited from imposing the terms of the agreement that is subject to this chapter.

(Added 2018, No. 11 (Sp. Sess.), § H.18.)

§ 2107 Ratification of agreement

(a) The representatives of school employers and the representatives of school employees shall each develop procedures by which their members shall ratify the agreement entered into by the Commission pursuant to this chapter within 30 days after the date of the agreement; provided, however, that if the agreement is determined by arbitration pursuant to subsection 2105(b) of this chapter, the agreement shall not be subject to ratification.

(b) In the event that either the school employers or school employees, or both, fail to ratify the agreement, the following provisions shall apply:

(1) If the Commission has not engaged in mediated fact-finding pursuant to subsection 2105(a) of this chapter during the current negotiation cycle, the Commission shall meet with the fact finder pursuant to the provisions of that subsection to settle all matters remaining in dispute. If the Commission is able to reach a new agreement, that agreement shall be submitted to the bargaining units for ratification. If, after mediated fact-finding, the Commission is unable to reach a new agreement, the Commission shall proceed to arbitration pursuant to subsection 2105(b) of this chapter.

(2) If the Commission has already engaged in mediated fact-finding pursuant to subsection 2105(a) of this chapter during the current negotiation cycle, the Commission shall proceed to arbitration pursuant to subsection 2105(b) of this chapter.

(Added 2018, No. 11 (Sp. Sess.), § H.18.)

§ 2108 Duties of school employers

Each school employer shall:

(1) deduct from the gross wages of each participating employee a sum equal to the percentage of the premium determined by the Commission to be the employee’s responsibility for the applicable tier of coverage;

(2) remit to the administrator of the health benefit plan the amount determined by the Commission to be the employers’ premium responsibility for each participating employee, along with the amount deducted from the employee’s wages for the employee’s premium share;

(3) contribute toward the out-of-pocket expenses of each participating employee in the amounts and manner determined by the Commission to be the employer’s responsibility; and

(4) participate in any health reimbursement arrangement or health savings account, or both, in the amounts and to the extent determined by the Commission.

(Added 2018, No. 11 (Sp. Sess.), § H.18.)

Chapter 71 State Teachers' Colleges

§§ 2161-2167 Repealed

[Repealed]

1961, No. 247, § 4, eff. July 28, 1961.

Chapter 72 Vermont State Colleges

§ 2170 Statutory purposes

The statutory purpose of the exemption for the Vermont State Colleges in section 2178 of this title is to allow institutions providing higher education to deploy more of their financial resources to their educational missions.

(Added 2013, No. 200 (Adj. Sess.), § 9.)

§ 2171 Corporation established; purposes; powers

(a) There is created as a part of the educational system of the State of Vermont a public corporation to be known as “Vermont State Colleges” or any other name that the Board of Trustees, established under section 2172 of this chapter, selects at a meeting duly warned for that purpose, provided that the word “Vermont” shall appear in the selected name. The Corporation shall plan, supervise, administer, and operate facilities for education at the postsecondary level supported in whole or in substantial part with State funds; however, while the Corporation shall maintain cooperative relations with the University of Vermont and State Agricultural College, nothing in this chapter shall give the Corporation any responsibility for the planning, supervision, administration, or operation of the University.

(b) The Corporation shall own the real and personal property of the Castleton State College, Johnson State College, Lyndon State College, Vermont Technical College, and Community College of Vermont, and of other State-operated institutions of higher education that may be established. It shall protect, preserve, and improve the properties and promote their use as institutions of higher education.

(c) The Corporation may acquire, hold, and dispose of property in fee or in trust, or any other estate, except as provided in subsection (d) of this section, shall have a common seal, and shall be an instrumentality of the State for the purposes set forth in this section. The State of Vermont shall support and maintain the Corporation.

(d) The Corporation shall not abandon, lease, sell, or dispose of any of the institutions under its control unless that action is specifically authorized by the General Assembly. The terms of any such sale, lease, or other disposal shall be prescribed by the Agency of Administration, with the approval of the Governor, within the terms of the authorization of the General Assembly.

(e) The Corporation may make expenditures for capital improvements. The Corporation is authorized to borrow money for building purposes, to give security that may be required, and to execute necessary related instruments, and is also authorized to accept, use, and administer any funds made available to it for any of its corporate purposes by the United States or any of its agencies, and to agree to any terms and conditions that may be required that are not inconsistent with its corporate purposes.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 1963, No. 104, eff. May 22, 1963; 1973, No. 240 (Adj. Sess.), § 1, eff. April 8, 1974; 2007, No. 52, § 41, eff. May 28, 2007; 2013, No. 92 (Adj. Sess.), § 178, eff. Feb. 14, 2014; 2015, No. 19, § 1, eff. July 15, 2015.)

§ 2172 Trustees; appointment; vacancies

(a) The Corporation shall be governed by a board of 15 trustees who shall be appointed or elected as follows:

(1) Biennially, the Governor, with the advice and consent of the Senate, shall appoint trustees to serve for four-year terms expiring March 1 of the year of the biennial session. Five trustees may be in office at one time under this subdivision. In the event of any vacancy occurring between biennial sessions in an office under this subdivision, the Governor, pursuant to 3 V.S.A. § 257, shall fill the vacancy, and the term of a person so appointed shall expire on March 1 in the year of the next following biennial session.

(2)(A) One trustee shall be a student trustee:

(i) who is a matriculated student at an educational institution operated by the Vermont State Colleges Corporation;

(ii) who is pursuing a degree program; and

(iii) who has reached the age of majority.

(B) The student trustee shall serve a one-year term expiring on June 1. The student trustee shall be appointed, and a vacancy may be filled, from among those eligible students applying for the position by the decision of those members of the steering committee of the Vermont State Colleges Student Association who have been elected at large to that committee by the students at their respective colleges. No student trustee may serve more than two consecutive terms.

(3) Four trustees shall be legislative trustees who are members of the General Assembly at the time of their election. Legislative trustees shall serve four-year terms expiring on March 1 of the second year of the biennial session, and they shall be elected by joint assembly of the Legislature. Vacancies for any cause shall be filled by the General Assembly at its earliest opportunity and the term of a person so appointed shall expire on March 1 of the next even numbered year.

(4) Four trustees shall be elected by the Board of Trustees to four-year terms expiring on March 1. Vacancies for any cause shall be filled by the remaining members of the Board of Trustees, and the term of the person so appointed shall expire on the next following March 1.

(b) Appointments by the Governor and elections by the General Assembly shall be made with consideration of the geographic distribution of members to prevent an unfair focus on any single college.

(c) No trustee shall be a member of the Board of Trustees of the University of Vermont.

(d)(1) The Board of Trustees, after notice and a hearing, may remove a trustee for incompetency, failure to discharge duties, malfeasance, illegal acts, or other cases inimical to the welfare of the Corporation.

(2) Gubernatorial-appointed trustees shall serve at the pleasure of the Governor pursuant to 3 V.S.A. § 2004.

(3) In the event of a vacancy occurring under this subsection, the Governor or the Board, as applicable, shall fill the vacancy pursuant to subsection (a) of this section.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 1977, No. 188 (Adj. Sess.), § 1, eff. April 5, 1978; 2015, No. 19, § 1, eff. July 15, 2015; 2015, No. 48, § 8, eff. July 16, 2015.)

§ 2173 Board of Trustees; organization

In addition to the 14 elected and appointed trustees, the Board of Trustees shall include as a member the Governor of Vermont. A majority of the trustees shall constitute a quorum for the transaction of business. Biennially, the Board shall elect one of its voting members to serve as its chair.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 1977, No. 188 (Adj. Sess.), § 2, eff. April 5, 1978; 2013, No. 92 (Adj. Sess.), § 179, eff. Feb. 14, 2014; 2015, No. 19, § 1, eff. July 15, 2015.)

§ 2174 Board of Trustees; power

The Board of Trustees may confer such honors and degrees as are usually given in colleges and universities and any other appropriate degrees and shall appoint a chancellor of the Corporation and a president for each institution under its control and prescribe their duties, salaries, and terms of office. The Board shall make bylaws and regulations for the government of its meetings and each institution under its control prescribing, among other things, the terms of admission, courses of instruction, educational standards, rates of tuition, scholarships, and other student aids.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 2015, No. 19, § 1, eff. July 15, 2015.)

§ 2175 Retirement system

The Corporation may deduct from funds appropriated to it for salaries, employer contributions to a retirement system established by its Board of Trustees, or to such other retirement system as the Board may choose.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 2013, No. 92 (Adj. Sess.), § 180, eff. Feb. 14, 2014.)

§ 2176 Procedures relating to accounting

The Corporation shall develop, administer, and install procedures relating to accounting practices, control of expenditures, budgets, audits, and purchase of supplies. The fiscal year of the Corporation shall be July 1 to June 30, and its fiscal biennium shall be the period of two successive fiscal years beginning July 1 of each odd-numbered year.

(Added 1961, No. 247, § 1, eff. July 28, 1961.)

§ 2177 Controls and audits; financial reports; other reports

(a) Control of funds appropriated and of the work carried on shall be vested in the Board of Trustees.

(b) The financial statements of the Corporation shall be audited annually as of June 30 by an independent public accounting firm registered in Vermont in accordance with government auditing standards issued by the U.S. Government Accountability Office.

(c), (d) [Repealed.]

(e) With the approval of the Governor, the Secretary of Administration, through the Deputy Secretary of Administration or any departments of the Agency of Administration that the Secretary may designate, shall have:

(1) the authority to allot to the Corporation the appropriation made by the General Assembly for the Corporation, which may be on a monthly basis or as the work of the Corporation may progress;

(2) the keeping of such controlling accounts as may be necessary in order to determine the accuracy and limit of the expenditures made under the allotments; and

(3) access to and the right to copy any records of the Corporation under such regulations as the Governor may prescribe.

(f) The Corporation shall be governed by the allotments made pursuant to this section and shall not at any time exceed the sums allotted; provided, however, that nothing in this section authorizes the Secretary of Administration, the Deputy Secretary, or any department designated pursuant to subsection (e) of this section to decrease any appropriation, except to the extent that actual annual receipts are less than estimated receipts.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 2007, No. 121 (Adj. Sess.), § 3; 2007, No. 154 (Adj. Sess.), §§ 6, 9; 2009, No. 33, § 83(g)(3); 2013, No. 92 (Adj. Sess.), § 181, eff. Feb. 14, 2014; 2019, No. 104 (Adj. Sess.), § 4.)

§ 2178 Tax exemption

All real and personal property owned by the Corporation and used for educational and not commercial purposes shall be exempt from taxation.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 2005, No. 207 (Adj. Sess.), § 8.)

§ 2179 Nonapplicability of certain statutes

Except as expressly provided in this chapter, the Corporation, its officers, and employees shall not be governed by:

(1) 3 V.S.A. chapter 9, dealing with administrative departments;

(2) 3 V.S.A. chapter 13, dealing with classification of State personnel;

(3) 3 V.S.A. chapter 16, dealing with the State Employees Retirement System, except as may be otherwise agreed by the Board of Trustees of the System and the Board of Trustees of the Corporation with respect to those officers and employees of the Corporation transferred to the Corporation from the State institutions replaced by the Corporation;

(4) chapter 55 of this title, dealing with the State Teachers Retirement System, except as may be otherwise agreed by the Board of Trustees of the System and the Board of Trustees of the Corporation with respect to those officers and employees of the Corporation transferred to the Corporation from the State institutions replaced by the Corporation;

(5) 32 V.S.A. chapter 7, dealing with public monies;

(6) chapters 3 and 5 of this title, dealing with the State Board and the Secretary of Education;

(7) 29 V.S.A. chapter 49, dealing with supplies, duties of the Commissioner of Buildings and General Services as to purchases of material, supplies, or equipment, except upon request of the Corporation;

(8) 29 V.S.A. chapter 5, dealing with the Department of Buildings and General Services, except that any contracts awarded for the construction of buildings by the Corporation shall continue to be subject to the provisions of 29 V.S.A. § 161(b); or

(9) 21 V.S.A. § 342(c), dealing with required written employee authorization before an employer may pay wages through electronic funds transfer or other direct deposit systems to a checking, savings, or other deposit account maintained by the employee within or outside the State.

(Added 1961, No. 247, § 1, eff. July 28, 1961; amended 1967, No. 50; 1973, No. 240 (Adj. Sess.), § 2, eff. April 8, 1974; 1983, No. 147 (Adj. Sess.), § 4(a), (b), eff. April 11, 1984; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2003, No. 63, § 47, eff. June 11, 2003; 2009, No. 4, § 87, eff. May 1, 2009; 2013, No. 92 (Adj. Sess.), § 182, eff. Feb. 14, 2014; 2015, No. 48, § 4.)

§ 2180 Repealed

[Repealed]

2015, No. 19, § 1, effective July 15, 2015.

§ 2181 Repealed

[Repealed]

1967, No. 8, § 1.

§ 2182 Repealed

[Repealed]

2009, No. 106 (Adj. Sess.), § 2(1), eff. May 13, 2010.

§ 2183 Repealed

[Repealed]

1999, No. 62, § 62.

§ 2184 School of Dental Hygiene

(a) The Vermont State Colleges shall establish and operate a School of Dental Hygiene for the training of dental hygienists. The Colleges shall have the authority to grant certificates of graduation on the successful completion of a two-year course in dental hygiene.

(b) The General Assembly shall appropriate funds to conduct a curriculum of a recognized School of Dental Hygiene to the State Colleges.

(c) The Colleges shall grant special tuition rates to residents of the State who agree to practice dental hygiene in the State for two years following graduation. The Colleges shall give preference in admissions to eligible students who are residents of the State.

(d) The Vermont State Colleges are authorized and empowered to receive from any source sums donated for scholarships or general improvements and may cooperate with the federal government or any agency thereof in securing federal funds for dental hygiene education in the State.

(Added 2003, No. 107 (Adj. Sess.), § 11.)

§ 2185 Determination of residency for tuition purposes

(a) The Board of Trustees shall adopt policies related to residency for tuition purposes, consistent with State and federal requirements. Any policies adopted by the Board shall not discriminate against or exclude a person based solely on the person’s immigration status, or lack thereof, if such person would otherwise qualify for and meet requirements for Vermont residency for tuition purposes as set forth by the Board and as permitted under federal law.

(b) Any member of the U.S. Armed Forces on active duty who is transferred to Vermont for duty other than for the purpose of education shall, upon transfer and for the period of active duty served in Vermont, be considered a resident for in-state tuition purposes at the start of the next semester or academic period.

(c) For determination of residency for tuition to the Community College of Vermont, a person who resides in Vermont shall be considered a resident for in-state tuition purposes, beginning at the start of the next semester or academic period after arrival in Vermont, if that person:

(1) qualifies as a refugee pursuant to 8 U.S.C. § 1101(a)(42) (Immigration and Nationality Act definition of refugee);

(2) is granted parole to enter the United States pursuant to 8 U.S.C. § 1182(d)(5) (temporary admission of nonimmigrants for urgent humanitarian reasons); or

(3) is issued a special immigrant visa pursuant to the Afghan Allies Protection Act of 2009, Pub. L. No. 111-8 (8 U.S.C. § 1101 note), as amended.

(d) The spouse and dependent child of any person who is a member of the U.S. Armed Forces and stationed in this State pursuant to military orders shall be entitled to be considered, upon taking up a residence in the State, a resident for in-state tuition purposes at the start of the next semester or academic period. The spouse or dependent child shall not lose classification as an in-state student if the spouse or dependent child continues to reside in the State and the member of the U.S. Armed Forces is transferred on military orders or retires. The spouse or dependent child shall lose this classification as an in-state student under this subsection if the spouse or dependent child no longer resides in the State and shall regain this classification upon again taking up a residency in the State only if the member of the U.S. Armed Forces is stationed in this State pursuant to military orders.

(e) Except as otherwise provided by law, or by consent of the individual identified in the record, information collected pursuant to this section that directly or indirectly identifies applicants or students, including grant, loan, scholarship, or outreach programs, is exempt from public inspection and copying under the Public Records Act and shall be kept confidential.

(Added 2003, No. 127 (Adj. Sess.), § 2; amended 2015, No. 19, § 1, eff. July 15, 2015; 2021, No. 140 (Adj. Sess.), § 5, eff. May 27, 2022; 2021, No. 166 (Adj. Sess.), § 1, eff. June 1, 2022; 2023, No. 136 (Adj. Sess.), § 4, eff. July 1, 2025.)

§ 2186 Reserve funds

(a) The Vermont State Colleges may create and establish one or more special funds, referred to in this section as “debt service reserve funds,” and shall pay into each debt service reserve fund:

(1) any monies appropriated and made available by the State for the purpose of the fund;

(2) any proceeds of the sale of notes or bonds, to the extent provided in the resolution or resolutions of the Vermont State Colleges authorizing the issuance thereof; and

(3) any other monies that may be made available to the Vermont State Colleges for the purpose of the fund from any other source or sources.

(b) All monies held in any debt service reserve fund, except as provided in this section, shall be used, as required, solely for the payment of the principal or purchase or redemption price of or interest or redemption premium on bonds or notes secured in whole or in part by the fund or of sinking fund payments with respect to the bonds or notes; provided, however, that monies in any fund shall not be withdrawn from the fund at any time in an amount as would reduce the amount of the fund to less than the debt service reserve requirement established by resolution of the Vermont State Colleges for the fund as hereafter provided, except for the purpose of making payments, when due, of principal, interest, redemption premiums, and sinking fund payments with respect to bonds and notes secured in whole or in part by the fund for the payment of which other monies of the Vermont State Colleges are not available. Any income or interest earned by any debt service reserve fund may be transferred to other funds or accounts of the Vermont State Colleges to the extent that it does not reduce the amount of the fund below the requirement for the fund.

(c) The Vermont State Colleges shall not at any time issue bonds or notes secured in whole or in part by a debt service reserve fund if upon the issuance of the bonds or notes the amount in the debt service reserve fund will be less than the debt service reserve requirement established by resolution of the Vermont State Colleges for the fund, unless the Vermont State Colleges at the time of issuance of the bonds or notes shall deposit in the fund from the proceeds of the bonds or notes so to be issued, or from other sources, an amount that, together with the amount then in the fund, will not be less than the debt service reserve requirement established for the fund. The debt service reserve requirement for any debt service reserve fund shall be established by resolution of the Vermont State Colleges prior to the issuance of any bonds or notes secured in whole or in part by the fund and shall not be required to exceed “maximum debt service,” which shall mean, as of any particular date of computation, an amount equal to the greatest of the respective amounts, for the then-current or any future fiscal year of the Vermont State Colleges, of annual debt service on the bonds and notes of the Vermont State Colleges secured or to be secured in whole or in part by the debt service reserve fund.

(d) In the computation of the amount of the debt service reserve funds for the purpose of this section, securities in which any of the funds shall be invested shall be valued at par if purchased at par or at amortized value, as the term is defined by resolution of the Vermont State Colleges, if purchased at other than par.

(e) In order to ensure the maintenance of the debt service reserve requirement in each debt service reserve fund established by the Vermont State Colleges, there may be appropriated annually and paid to the Vermont State Colleges for deposit in each fund the sum as shall be certified by the Chair of the Board of Trustees of the Vermont State Colleges to the Governor, the President of the Senate, and the Speaker of the House as is necessary to restore each such debt service reserve fund to an amount equal to the debt service reserve requirement for the fund. The Chair shall annually, on or about February 1, make and deliver to the Governor, the President of the Senate, and the Speaker of the House his or her certificate stating the sum required to restore each debt service reserve fund to the amount equal to the debt service reserve requirement for the fund, and the sum so certified may be appropriated, and if appropriated, shall be paid to the Vermont State Colleges during the then-current State fiscal year. The principal amount of bonds or notes outstanding at any one time and secured in whole or in part by a debt service reserve fund to which State funds may be appropriated pursuant to this subsection shall not exceed $34,000,000.00, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the Vermont State Colleges in contravention of the Constitution of the United States of America.

(f) The proceeds of any bonds or notes secured by a debt service reserve fund to which State funds may be appropriated pursuant to this section shall be applied solely to costs of reconstruction, rehabilitation, or improvement of existing facilities or property of the Vermont State Colleges.

(Added 2007, No. 200 (Adj. Sess.), § 48; amended 2019, No. 131 (Adj. Sess.), § 94.)

§ 2187 Redesignated

[Redesignated]

(Added 2021, No. 68, § 6, eff. June 8, 2021; renumbered to 16 V.S.A. § 183 by 2023, No. 114 (Adj. Sess.), § 5, eff. July 1, 2024.)

§ 2188 Property transactions

Any sale, lease, demolition, or disposal of property by the Vermont State Colleges Corporation shall comply with the requirements of 32 V.S.A. § 962.

(Added 2021, No. 74, § E.602.1.)

Chapter 73 Vermont Agricultural and Technical Institute

§§ 2221-2228 Repealed

[Repealed]

1961, No. 247, § 4, eff. July 28, 1961.

Chapter 75 University of Vermont and State Agricultural College

Subchapter 1 General Provisions

§ 2281 Annual audit; reports; control of funds

(a) The books and accounts of the University of Vermont and State Agricultural College shall be audited annually as of June 30 by an independent accounting firm registered in the State of Vermont in accordance with government auditing standards issued by the U.S. Government Accountability Office (GAO). The Auditor of Accounts or his or her designee shall be the State’s nonvoting representative to an audit committee established by the Board.

(b), (c) [Repealed.]

(d) Control of funds appropriated and of the work carried on shall be vested in the Board of Trustees of the University of Vermont and State Agricultural College.

(e) The University of Vermont and State Agricultural College shall provide an accounting service that shall account for the expenditures by divisions.

(f) Control of funds appropriated shall be vested in the Board of Trustees of the University of Vermont and State Agricultural College. All funds appropriated to the Agricultural College shall be kept in a separate account and shall be audited annually by an independent accounting firm registered in the State of Vermont in accordance with government auditing standards issued by the U.S. Government Accountability Office.

(Amended 2007, No. 121 (Adj. Sess.), § 4; 2007, No. 154 (Adj. Sess.), §§ 6, 10; 2009, No. 33, §§ 36, 83(g)(4); 2015, No. 23, § 40.)

§ 2282 Repealed

[Repealed]

2015, No. 172 (Adj. Sess.), § E.600.1.

§ 2282a Determination of residency for tuition purposes

(a) Enrollment at an institution for higher learning, or presence within the State for the purposes of attending an institution of higher learning, shall not by itself constitute residence for in-state tuition purposes or for the purpose of eligibility for assistance from the Vermont Student Assistance Corporation. The Board of Trustees shall adopt policies related to residency for tuition purposes, consistent with State and federal requirements. Any policies adopted by the Board of Trustees shall not discriminate against or exclude a person based solely on the person’s immigration status, or lack thereof, if such person would otherwise qualify for and meet requirements for Vermont residency for tuition purposes as set forth by the Board and as permitted under federal law.

(b) Any member of the U.S. Armed Forces on active duty who is transferred to Vermont for duty other than for the purpose of education shall, upon transfer and for the period of active duty served in Vermont, be considered a resident for in-state tuition purposes at the start of the next semester or academic period.

(c) The spouse and dependent child of any person who is a member of the U.S. Armed Forces and stationed in this State pursuant to military orders shall be entitled to be considered, upon taking up a residence in the State, a resident for in-state tuition purposes at the start of the next semester or academic period. The spouse or dependent child shall not lose classification as an in-state student if the spouse or dependent child continues to reside in the State and the member of the U.S. Armed Forces is transferred on military orders or retires. The spouse or dependent child shall lose this classification as an in-state student under this subsection if the spouse or dependent child no longer resides in the State and shall regain this classification upon again taking up a residency in the State only if the member of the U.S. Armed Forces is stationed in this State pursuant to military orders.

(d) Except as otherwise provided by law, or by consent of the individual identified in the record, information collected pursuant to this section that directly or indirectly identifies applicants or students, including grant, loan, scholarship, or outreach programs, is exempt from public inspection and copying under the Public Records Act and shall be kept confidential.

(1971, No. 184 (Adj. Sess.), § 30, eff. March 29, 1972; amended 2003, No. 127 (Adj. Sess.), § 1; 2021, No. 140 (Adj. Sess.), § 6, eff. May 27, 2022; 2023, No. 136 (Adj. Sess.), § 5, eff. July 1, 2025.)

§ 2283 Department of Police Services

(a) The Board of Trustees may establish a Department of Police Services and authorize the appointment to the Department of police officers and a director of the Department who shall be a police officer. Officers so appointed shall be sworn and shall have all law enforcement powers provided by 24 V.S.A. § 1935. Appointments and oaths shall be in writing and shall be filed with and maintained by the Board of Trustees of the University of Vermont and State Agricultural College. The director shall have free and direct access to the Board of Trustees on matters pertaining to law enforcement.

(b) An officer appointed pursuant to this section shall have no law enforcement authority until satisfactory completion of a course of training pursuant to 20 V.S.A. chapter 151. The University of Vermont shall have access to training programs offered pursuant to 20 V.S.A. chapter 151 upon the same terms and conditions as municipal police officers. Nothing in this section shall prohibit the Board of Trustees or its duly authorized representative from requiring additional qualification or training as a condition of initial or continuing appointment.

(c) An officer appointed under authority of this section shall be an employee of the University of Vermont and shall be subject to such terms and conditions of employment as are imposed by the Board of Trustees or its duly authorized representative. An officer so appointed may exercise law enforcement authority only while employed in good standing by the University of Vermont.

(d) Upon written complaint of misconduct by one or more persons concerning any police officer appointed under this section, the director of the Department shall cause an investigation to be conducted in a manner consistent with the policies and procedures established by the Board of Trustees or its duly authorized representative for such purposes. The complainant may appeal the final action of the department to the President of the University of Vermont, who shall convene an advisory commission consisting of three persons, no more than one of whom has a direct or indirect University affiliation. The advisory commission shall provide advice and counsel to the President in assuring appropriate final disposition of the complaint.

(e) Without limiting the powers described in subsection (a) of this section, the Department of Police Services may, for the purpose of coordinating effective law enforcement services, enter into any arrangements or agreements with any municipality if deemed necessary or appropriate by the Board of Trustees or its duly authorized representative.

(Added 1991, No. 142 (Adj. Sess.); amended 2019, No. 131 (Adj. Sess.), § 95.)

§ 2284 Repealed

[Repealed]

2009, No. 106 (Adj. Sess.), § 2(2), eff. May 13, 2010.

§ 2285 Nonapplicability of certain requirements for payment of wages

Except as expressly provided in this chapter, the University of Vermont and State Agricultural College and its Board of Trustees, officers, and employees shall not be subject to the provisions of 21 V.S.A. § 342(c) that require written employee authorization before an employer may pay wages through electronic funds transfer or other direct deposit systems to a checking, savings, or other deposit account maintained by the employee within or outside the State.

(Added 2015, No. 48, § 4a.)

Subchapter 2 Agricultural College

§ 2321 Repealed

[Repealed]

2013, No. 56, § 15(4), eff. May 30, 2013.

§ 2322 Repealed

[Repealed]

2007, No. 154 (Adj. Sess.), § 6(11).

§ 2323 Repealed

[Repealed]

2013, No. 56, § 15(4), eff. May 30, 2013.

§ 2324 Repealed

[Repealed]

1981, No. 209 (Adj. Sess.), § 2, eff. Jan. 1, 1984.

§ 2324a Repealed

[Repealed]

1983, No. 100 (Adj. Sess.), § 2, eff. Dec. 31, 1986.

§§ 2325-2327 Repealed

[Repealed]

2013, No. 56, § 15(4), eff. May 30, 2013.

Subchapter 3 College of Medicine

§ 2361 Repealed

[Repealed]

2013, No. 56, § 15(5), eff. May 30, 2013.

§ 2362 Repealed

[Repealed]

2005, No. 71, § 271.

§ 2363 Reserve funds

(a) The University of Vermont and State Agricultural College may create and establish one or more special funds, referred to in this section as “debt service reserve funds,” and shall pay into each such debt service reserve fund:

(1) any monies appropriated and made available by the State for the purpose of such fund;

(2) any proceeds of the sale of notes or bonds, to the extent provided in the resolution or resolutions of the University of Vermont and State Agricultural College authorizing the issuance thereof; and

(3) any other monies that may be made available to the University of Vermont and State Agricultural College for the purpose of such fund from any other source or sources.

(b) All monies held in any debt service reserve fund, except as provided in this section, shall be used, as required, solely for the payment of the principal or the purchase or redemption price of or interest or redemption premium on bonds or notes secured in whole or in part by such fund or of sinking fund payments with respect to the bonds or notes; provided, however, that monies in any fund shall not be withdrawn at any time in such amount as would reduce the amount of the fund to less than the debt service reserve requirement established by resolution of the University of Vermont and State Agricultural College for the fund as hereafter provided, except for the purpose of making payments, when due, of principal, interest, redemption premiums, and sinking fund payments with respect to bonds and notes secured in whole or in part by the fund for the payment of which other monies of the University of Vermont and State Agricultural College are not available. Any income or interest earned by any debt service reserve fund may be transferred to other funds or accounts of the University of Vermont and State Agricultural College to the extent that it does not reduce the amount of the fund below the requirement for such fund.

(c) The University of Vermont and State Agricultural College shall not at any time issue bonds or notes secured in whole or in part by a debt service reserve fund if upon the issuance of the bonds or notes the amount in the debt service reserve fund will be less than the debt service reserve requirement established by resolution of the University of Vermont and State Agricultural College for the fund, unless the University of Vermont and State Agricultural College at the time of issuance of the bonds or notes shall deposit in the fund from the proceeds of the bonds or notes so to be issued, or from other sources, an amount that, together with the amount then in the fund, will not be less than the debt service reserve requirement established for the fund. The debt service reserve requirement for any debt service reserve fund shall be established by resolution of the University of Vermont and State Agricultural College prior to the issuance of any bonds or notes secured in whole or in part by such fund and shall not be required to exceed “maximum debt service,” which shall mean, as of any particular date of computation, an amount equal to the greatest of the respective amounts, for the then-current or any future fiscal year of the University of Vermont and State Agricultural College, of annual debt service on the bonds and notes of the University of Vermont and State Agricultural College secured or to be secured in whole or in part by the debt service reserve fund.

(d) In the computation of the amount of the debt service reserve funds for the purpose of this section, securities in which any of the funds shall be invested shall be valued at par if purchased at par or at amortized value, as the term is defined by resolution of the University of Vermont and State Agricultural College, if purchased at other than par.

(e) In order to assure the maintenance of the debt service reserve requirement in each debt service reserve fund established by the University of Vermont and State Agricultural College, there may be appropriated annually and paid to the University of Vermont and State Agricultural College for deposit in each fund the sum as shall be certified by the Chair of the Board of Trustees of the University of Vermont and State Agricultural College to the Governor, the President of the Senate, and the Speaker of the House as is necessary to restore each debt service reserve fund to an amount equal to the debt service reserve requirement for the fund. The Chair shall annually, on or about February 1, make and deliver to the Governor, the President of the Senate, and the Speaker of the House his or her certificate stating the sum required to restore each debt service reserve fund to the amount equal to the debt service reserve requirement for the fund, and the sum so certified may be appropriated and, if appropriated, shall be paid to the University of Vermont and State Agricultural College during the then-current State fiscal year. The principal amount of bonds or notes outstanding at any one time and secured in whole or in part by a debt service reserve fund to which State funds may be appropriated pursuant to this subsection shall not exceed $66,000,000.00, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the University of Vermont and State Agricultural College in contravention of the Constitution of the United States of America.

(f) The proceeds of any bonds or notes secured by a debt service reserve fund to which State funds may be appropriated pursuant to this section shall be applied solely to costs of reconstruction, rehabilitation, or improvement of existing facilities or property of the University of Vermont and State Agricultural College.

(Added 2007, No. 200 (Adj. Sess.), § 47; amended 2019, No. 131 (Adj. Sess.), § 96.)

Chapter 77 Norwich University

§§ 2421, 2422 Repealed

[Repealed]

1965, No. 198, § 12.

§§ 2423-2470 [Reserved for future use.]
§ 2471 Military college of State; rank of faculty and staff

Norwich University is hereby recognized as the military college of the State of Vermont, and its faculty and administrative staff shall have local rank assigned by the trustees as follows: the President shall have general officer rank; and the Dean, heads of departments, and members of the faculty and administrative staff shall have a rank below the rank of the President comparable to the position on the faculty as prescribed by the Board of Trustees of Norwich University, all without pay from the State.

(Amended 1979, No. 4.)

§ 2472 Repealed

[Repealed]

1965, No. 198, § 12.

§ 2473 Repealed

[Repealed]

1959, No. 252, § 9.

§ 2474 Repealed

[Repealed]

1965, No. 198, § 12.

§ 2475 Repealed

[Repealed]

1969, No. 16, § 14, eff. March 11, 1969.

Chapter 78 Access to Reproductive and Gender-Affirming Health Care Services

§ 2501 Definitions

As used in this chapter:

(1) “Gender-affirming health care readiness” means each institution’s preparedness to provide gender-affirming health care services to students or assist students in obtaining gender-affirming health care services, including having in place equipment, protocols, patient educational materials, informational websites, and training for staff; provided, however, that gender-affirming health care readiness may include the provision of gender-affirming health care services.

(2) “Gender-affirming health care services” has the same meaning as in 1 V.S.A. § 150.

(3) “Institution” means the University of Vermont or a college in the Vermont State College system.

(4) “Reproductive health care services” has the same meaning as in 1 V.S.A. § 150.

(5) “Reproductive health care readiness” means each institution’s preparedness to provide reproductive health care services to students or assist students in obtaining reproductive health care services, including having in place equipment, protocols, patient educational materials, informational websites, and training for staff; provided, however, that reproductive health care readiness may include the provision of reproductive health care services.

(6) “Telehealth” has the same meaning as in 26 V.S.A. § 3052.

(Added 2023, No. 15, § 12, eff. May 10, 2023.)

§ 2502 Gender-affirming health care and reproductive health care readiness; reports

(a) Each institution shall report to the Agency of Human Services annually, on or before November 1, on the current status of its gender-affirming health care and reproductive health care readiness, including:

(1) whether the institution has an operational health center on campus;

(2) whether the institution employs health care providers on campus;

(3) the types of gender-affirming health care services and reproductive health care services that the institution offers to its students on campus and the supports that the institution provides to students who receive those services;

(4) the institution’s efforts to assist students with obtaining gender- affirming health care services and reproductive health care services from licensed health care professionals through telehealth;

(5) the institution’s proximity to a hospital, clinic, or other facility that provides gender-affirming health care services or reproductive health care services, or both, that are not available to students on campus;

(6) the information that the institution provides regarding facilities that offer gender-affirming health care services and reproductive health care services that are not available to students on campus, including information regarding the scope of the services that are available at each such facility; and

(7) the availability, convenience, and cost of public transportation between the institution and the closest facility that provides gender-affirming health care services or reproductive health care services, or both, and whether the institution provides transportation.

(b) On or before January 31 of each year, the Agency of Human Services shall compile the materials submitted pursuant to subsection (a) of this section and report to the House Committees on Education, on Health Care, and on Human Services and the Senate Committees on Education and on Health and Welfare on the status of gender-affirming health care and reproductive health care readiness at Vermont’s institutions.

(Added 2023, No. 15, § 12, eff. May 10, 2023.)

Chapter 79 Scholarships; Reports

§ 2531 Repealed

[Repealed]

1959, No. 252, § 9.

§§ 2531a-2531e Repealed

[Repealed]

2013, No. 56, § 15(6), eff. May 30, 2013.

§ 2531f Repealed

[Repealed]

2009, No. 33, § 83(g)(5).

§ 2531g Repealed

[Repealed]

1965, No. 198, § 12.

§ 2531h Repealed

[Repealed]

1975, No. 202 (Adj. Sess.), § 2, eff. March 27, 1976.

§ 2532 Repealed

[Repealed]

1959, No. 252, § 9.

§ 2533 Repealed

[Repealed]

1965, No. 198, § 12.

§ 2534 Repealed

[Repealed]

1959, No. 252, § 9.

§ 2535 Town scholarships

A town, at any legal meeting of the voters, may appropriate from its general funds money to pay all or part of the tuition and incidental expenses of one or more students from the town in any institution of higher learning. When a town makes such an appropriation, a committee consisting of the superintendent of the district in which the town is located, the chair of the school board, the chair of the prudential committee, if any, in the town, and the principals of each high school and academy in the town, or if there is not a high school or academy, the principal of the high school usually attended by the resident students shall constitute a board of selection. On or before August 1 following an appropriation, the board shall designate, on the basis of scholarship and need, the number of students authorized by the appropriation. The choice of the institution shall be made by each student receiving a scholarship.

(Amended 1975, No. 100, § 2; 2013, No. 92 (Adj. Sess.), § 184, eff. Feb. 14, 2014.)

§ 2536 Repealed

[Repealed]

2007, No. 154 (Adj. Sess.), § 6(12).

§ 2537 Armed Services Scholarships

(a) It shall be the policy of the State of Vermont to provide scholarships to be known as the Armed Services Scholarships for education beyond high school for:

(1) Children and spouses of members in good standing of the Vermont National Guard who since 1955 have been killed, or who since January 1, 2001 have died, while on active or inactive duty in accordance with specifications herewith.

(2) Children and spouses of members in good standing of the active Reserve Forces of the United States who since January 1, 2001 have died while on active or inactive duty and who were Vermont residents at the time of death.

(3) Children and spouses of members of the active Armed Forces of the United States who since January 1, 2001 have died while on active duty and who, at the time of death, were either Vermont residents, nonresident members of the Vermont National Guard who were mobilized to active duty, or nonresident active Reserve Force members of a Vermont-based reserve unit who were mobilized to active duty. A child or spouse of a deceased nonresident member of the active Reserve Forces shall be ineligible for an Armed Services Scholarship if he or she is eligible for a death benefit from the last state of residence of the deceased parent or spouse, that helps finance attendance at a postsecondary institution in that state.

(b) Definitions:

(1) “Vermont National Guard” as used in this section will be deemed to include Vermont Army National Guard and Vermont Air National Guard.

(2) “Active duty for Vermont National Guard and for active Reserve Forces” means full-time duty in the active military service of the United States and includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the secretary of the military department concerned.

(3) “Inactive duty” means training performed by members of a reserve component while not on active duty and includes unit training assemblies, training periods, military flight periods, and other equivalent duty and while on State duty on order of the Governor or the Governor’s representative.

(4) “Armed Forces of the United States” means the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard.

(5) “Child” means a natural or adoptive child of a member of the Vermont National Guard or Armed Forces, and includes a stepchild.

(Added 1967, No. 199, § 1; amended 1973, No. 233 (Adj. Sess.), § 1, eff. April 4, 1974; 2003, No. 21, § 1; 2003, No. 127 (Adj. Sess.), § 3; 2011, No. 149 (Adj. Sess.), § 7; 2023, No. 85 (Adj. Sess.), § 34, eff. July 1, 2024.)

§ 2538 Amount, duration

(a) Subject to subsection (c) of this section, an Armed Services Scholarship shall pay tuition for academic credit at a Vermont postsecondary institution eligible for student assistance funds under Title IV of the Higher Education Act of 1965 and leading to an undergraduate certificate or degree as follows:

(1) If the person attends the University of Vermont, the scholarship shall pay an amount equal to the actual tuition charged by the University to the person.

(2) If the person attends a Vermont State College, the scholarship shall pay an amount equal to the actual tuition charged by the institution to the person.

(3) If the person attends any other postsecondary institution located in Vermont, the scholarship shall pay an amount equal to the actual tuition charged by the institution to the person, or an amount equal to that which the scholarship would have paid if the person attended the University of Vermont pursuant to subdivision (1) of this subsection, whichever is less.

(b) An Armed Services Scholarship may be used for a maximum of 130 academic credits for an undergraduate certificate or degree.

(c) A person eligible and applying for an Armed Forces Scholarship shall apply for a federal Pell Grant. The amount of the Armed Services Scholarship awarded shall be the remaining tuition to be paid pursuant to subsection (a) of this section, following receipt of a Pell Grant.

(d) A person who has obtained a bachelor’s degree is not eligible for an Armed Services Scholarship.

(Added 1967, No. 199, § 2; amended 1973, No. 38; 2003, No. 21, § 3; 2003, No. 127 (Adj. Sess.), § 4; 2013, No. 50, § E.219.1.)

§ 2539 Application, award, renewal

(a) Applications for Armed Services Scholarships shall be processed as follows:

(1) for a child or spouse of a member of the Vermont National Guard or of the active Reserve Forces of the United States, by the Vermont Adjutant General who shall verify the eligibility of the applicant as provided in section 2537 of this title; and

(2) for a child or spouse of a member of the Armed Forces of the United States, by the Office of Veterans’ Affairs who shall verify the eligibility of the applicant as provided in section 2537 of this title.

(b) On being notified of an eligible applicant’s matriculation at an institution as specified in subsection 2538(a) of this title, the Adjutant and Inspector General or the Office of Veterans’ Affairs shall provide funds from the special fund established in section 2541 of this title to the Vermont Student Assistance Corporation, which, upon verifying enrollment, shall disburse the scholarship award to the institution.

(c) Application for renewal of an Armed Services Scholarship shall be made annually with written endorsement by the proper officer of the institution attended that the holder of the scholarship has maintained satisfactory scholastic standing. On receipt of this certification, the Adjutant and Inspector General or the Office of Veterans’ Affairs shall provide funds from the special fund established in section 2541 of this title to the Vermont Student Assistance Corporation, which, upon verifying enrollment, shall disburse the scholarship award to the institution.

(Added 1967, No. 199, § 3; amended 2003, No. 127 (Adj. Sess.), § 5; 2013, No. 50, § E.219.2.)

§ 2540 Repealed

[Repealed]

2003, No. 127 (Adj. Sess.), § 7.

§ 2541 Armed Services Scholarship Fund

(a) An Armed Services Scholarship Fund is established to comprise appropriations made by the General Assembly. The Fund shall be managed pursuant to 32 V.S.A. chapter 7, subchapter 5 and shall be available to the Military Department for the Armed Services Scholarships established in section 2537 of this title.

(b) All balances in the Fund at the end of any fiscal year shall be carried forward and used only for the purposes set forth in this section. Earnings of the Fund that are not withdrawn pursuant to this section shall remain in the Fund.

(Added 2003, No. 127 (Adj. Sess.), § 6; amended 2013, No. 50, § E.219.3.)

Chapter 80 Assistance to Students

§§ 2551-2555 Repealed

[Repealed]

1965, No. 198, § 12.

Chapter 81 Nursing Education

§§ 2631-2634 Repealed

[Repealed]

1965, No. 198, § 12.

§ 2635 School of Nursing

The Board of Trustees of Vermont State Colleges may establish a School of Nursing leading to an associate in science degree if in its judgment the school would serve to alleviate the shortage of nurses in Vermont and to provide for their professional education.

(1961, No. 274, § 1, eff. Aug. 1, 1961; amended 1963, No. 8, eff. March 12, 1963.)

Chapter 82 Practical Nursing Education

§ 2651 Purpose of chapter

The purposes of this chapter are to assist existing schools for practical nursing and to assist in the establishment of a school or schools for practical nursing under the direction of the Board of Trustees of the Vermont State College system.

(Added 1957, No. 273, § 1; amended 1993, No. 145 (Adj. Sess.), § 1.)

§ 2652 Bylaws and regulations

The Board of Trustees of the Vermont State Colleges shall make bylaws and regulations, consistent with the policies and regulations of the Vermont State Board of Nursing, to carry out the purposes of this chapter.

(Added 1957, No. 273, § 2; 1961, No. 184, § 3, eff. June 28, 1961; 1993, No. 145 (Adj. Sess.), § 2.)

§ 2653 Appropriations

Hereafter funds for the continuation of the program under this chapter shall be requested as a part of the operational budget of the Vermont State Colleges.

(Added 1957, No. 273, § 3; amended 1959, No. 121, § 1; 1961, No. 95, § 1; 1993, No. 145 (Adj. Sess.), § 3.)

§ 2654 Consultant services by Department of Health

The Department of Health may furnish consultant services as requested by the Vermont State College Board of Trustees in connection with this chapter.

(1961, No. 95, § 2; amended 1993, No. 145 (Adj. Sess.), § 4.)

Chapter 83 New England Higher Education Compact

Subchapter 1 Terms of Compact

§ 2691 Purposes—Article I

The purposes of the New England Higher Education Compact shall be to provide greater educational opportunities and services through the establishment and maintenance of a coordinated educational program for the persons residing in the several states of New England parties to this compact, with the aim of furthering higher education in the fields of medicine, dentistry, veterinary medicine, public health and in professional, technical, scientific, literary and other fields.

§ 2692 Creation of Board of Higher Education—Article II

There is hereby created and established a New England Board of Higher Education hereinafter known as the board, which shall be an agency of each state party to the compact. The board shall be a body corporate and politic, having the powers, duties and jurisdiction herein enumerated and such other and additional powers as shall be conferred upon it by the concurrent act or acts of the compacting states. The board shall consist of eight members from each compacting state, at least two of whom shall be members of the legislature, chosen in the manner and for the terms provided by law of the several states parties to this compact.

(Amended 1969, No. 55, § 1.)

§ 2693 When operative—Article III

This compact shall become operative immediately as to those states executing it whenever any two or more of the states of Maine, Vermont, New Hampshire, Massachusetts, Rhode Island and Connecticut have executed it in the form which is in accordance with the laws of the respective compacting states.

§ 2694 General administrative powers and duties of board—Article IV

The board shall annually elect from its members a chairman and vice-chairman and shall appoint and at its pleasure remove or discharge said officers. It may appoint and employ an executive secretary and may employ such stenographic, clerical, technical or legal personnel as shall be necessary, and at its pleasure remove or discharge such personnel. It shall adopt a seal and suitable bylaws and shall promulgate any and all rules and regulations which may be necessary for the conduct of its business. It may maintain an office or offices within the territory of the compacting states and may meet at any time or place. Meetings shall be held at least once each year. A majority of the members shall constitute a quorum for the transaction of business, but no action of the board imposing any obligation on any compacting state shall be binding unless a majority of the members from such compacting state shall have voted in favor thereof. Where meetings are planned to discuss matters relevant to problems of education affecting only certain of the compacting states, the board may vote to authorize special meetings of the board members of such states. The board shall keep accurate accounts of all receipts and disbursements and shall make an annual report to the governor and the legislature of each compacting state, setting forth in detail the operations and transactions conducted by it pursuant to this compact, and shall make recommendations for any legislative action deemed by it advisable, including amendments to the statutes of the compacting states which may be necessary to carry out the intent and purpose of this compact. The board shall not pledge the credit of any compacting state without the consent of the legislature thereof given pursuant to the constitutional processes of said state. The board may meet any of its obligations in whole or in part with funds available to it under Article VII of this compact; provided, that the board takes specific action setting aside such funds prior to the incurring of any obligation to be met in whole or in part in this manner. Except where the board makes use of funds available to it under Article VII hereof, the board shall not incur any obligations for salaries, office, administrative, traveling or other expenses prior to the allotment of funds by the compacting states adequate to meet the same. Each compacting state reserves the right to provide hereafter by law for the examination and audit of the accounts of the board. The board shall appoint a treasurer and assistant treasurer who may be empowered to perform any and all duties of the treasurer. Fiscal disbursements of the board shall be valid only when authorized by any two persons from among those authorized by the board to execute this authority, and when substantiated by vouchers signed and countersigned by any two persons from among those authorized by the board to execute this authority. The executive secretary shall be custodian of the records of the board with authority to attest to and certify such records or copies thereof.

(Amended 1969, No. 55, § 2.)

§ 2695 General powers of board; contracts—Article V

The board shall have the power to: (1) collect, correlate, and evaluate data in the fields of its interest under this compact; to publish reports, bulletins and other documents making available the results of its research; and, in its discretion, to charge fees for said reports, bulletins and documents; (2) enter into such contractual agreements or arrangements with any of the compacting states or agencies thereof and with educational institutions and agencies as may be required in the judgment of the board to provide adequate services and facilities in educational fields covered by this compact; provided, that it shall be the policy of the board in the negotiation of its agreements to serve increased numbers of students from the compacting states through arrangements with then existing institutions, whenever in the judgment of the board adequate service can be so secured in the New England region. Each of the compacting states shall contribute funds to carry out the contracts of the board on the basis of the number of students from such state for whom the board may contract. Contributions shall be at the rate determined by the board in each educational field. Except in those instances where the board by specific action allocates funds available to it under Article VII hereof, the board’s authority to enter into such contracts shall be only upon appropriation of funds by the compacting states. Any contract entered into shall be in accordance with rules and regulations promulgated by the board and in accordance with the laws of the compacting states.

§ 2696 Availability of funds—Article VI

Each state agrees that, when authorized by the legislature pursuant to the constitutional processes, it will from time to time make available to the board such funds as may be required for the expenses of the board as authorized under the terms of this compact. The contribution of each state for this purpose shall be in the proportion that its population bears to the total combined population of the states who are parties hereto as shown from time to time by the most recent official published report of the Bureau of the Census of the United States of America, unless the board shall adopt another basis in making its recommendation for appropriation to the compacting states.

§ 2697 Power of board as to grants, devises, gifts and bequests—Article VII

The board for the purposes of this compact is hereby empowered to receive grants, devises, gifts and bequests which the board may agree to accept and administer. The board shall administer property held in accordance with special trusts, grants and bequests, and shall also administer grants and devises of land and gifts or bequests of personal property made to the board for special uses, and shall execute said trusts, investing the proceeds thereof in notes or bonds secured by sufficient mortgages or other securities.

§ 2698 Separability—Article VIII

The provisions of this compact shall be severable, and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the Constitution of any compacting state or of the United States the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby; provided, that if this compact is held to be contrary to the constitution of any compacting state the compact shall remain in full force and effect as to all other compacting states.

§ 2699 Period of existence; withdrawal; reinstatement—Article IX

This compact shall continue in force and remain binding upon a compacting state until the legislature or the governor of such state, as the laws of such state shall provide, takes action to withdraw therefrom. Such action shall not be effective until two years after notice thereof has been sent by the governor of the state desiring to withdraw to the governors of all other states then parties to the compact. Such withdrawal shall not relieve the withdrawing state from its obligations accruing hereunder prior to the effective date of withdrawal. Any state so withdrawing, unless reinstated, shall cease to have any claim to or ownership of any of the property held by or vested in the board or to any of the funds of the board held under the terms of the compact. Thereafter, the withdrawing state may be reinstated by application after appropriate legislation is enacted by such state, upon approval by a majority vote of the board.

§ 2700 Default by compacting state—Article X

If any compacting state shall at any time default in the performance of any of its obligations assumed or imposed in accordance with the provisions of this compact, all rights and privileges and benefits conferred by this compact or agreement hereunder shall be suspended from the effective date of such default as fixed by the board. Unless such default shall be remedied within a period of two years following the effective date of such default, this compact may be terminated with respect to such defaulting state by affirmative vote of three-fourths of the other member states. Any such defaulting state may be reinstated by (a) performing all acts and obligations upon which it has heretofore defaulted, and (b) application to and approval by a majority vote of the board.

Subchapter 2 Provisions Relating to Compact

§ 2731 Appointment of State members of board

Eight persons shall represent the State as members of the board. One board member shall be a member of the Senate, appointed by the President of the Senate; one shall be a Representative, appointed by the Speaker of the House of Representatives; one board member shall be appointed by the Vermont Council on Higher Education, Inc.; and three shall be appointed by the Governor. Each of the board members appointed under this section shall serve for a term of six years. However, not more than two board members’ terms shall expire in any year, and appointments for terms of less than six years may be made as necessary for this purpose. A board member may be appointed to fill the unexpired term of a member who dies, resigns, or becomes disqualified to serve. The President of the University of Vermont and State Agricultural College and the presiding officer of the Vermont State Colleges Corporation shall be ex officio members of the board.

(Amended 1969, No. 55, § 3.)

§ 2732 Compensation of members

The appointed members of the board shall receive $ 30.00 a day for the time actually spent in the performance of their duties, and all members of the board shall receive their actual and necessary expenses when away from home upon their official duties.

(Amended 1964, No. 22 (Sp. Sess.), § 2, eff. March 11, 1964; 1973, No. 92, eff. April 24, 1973.)

§ 2733 Accounts

The members from this State shall obtain accurate accounts of all the board’s receipts and disbursements.

(Amended 2011, No. 139 (Adj. Sess.), § 14, eff. May 14, 2012.)

Chapter 85 Correspondence Schools

§§ 2751-2760 Repealed

[Repealed]

1991, No. 167 (Adj. Sess.), § 66(1).

Chapter 86 Educational Television

§ 2801 Gifts

The trustees of the University of Vermont and State Agricultural College may accept any gift of money or real or personal property from any source whatever and grants in aid from the federal government to assist in carrying out the purposes of this chapter.

(Added 1966, No. 23 (Sp. Sess.), § 4, eff. March 10, 1966.)

§ 2802 Construction

The University of Vermont and State Agricultural College may acquire real estate; construct, operate, manage, and equip television broadcast stations and related auxiliary broadcast stations, including microwave facilities; and may interconnect with any other television station or network for the purpose of providing a statewide education television network for the transmission of programs to students in schools, colleges, and universities in Vermont, as well as to the public generally throughout the State; and may enter into any contract considered necessary to carry out the purposes of this chapter. Title to the facilities created under this chapter shall be held in the name of the University of Vermont and State Agricultural College.

(Added 1966, No. 23 (Sp. Sess.), § 5, eff. March 10, 1966.)

§ 2803 Purposes

The action of the University of Vermont and State Agricultural College in applying for construction permits and federal matching funds in connection with educational television in Vermont is expressly ratified and confirmed. The University of Vermont and State Agricultural College may hold all necessary governmental authorizations for all facilities contemplated by this chapter, and shall take all acts necessary for the efficient and economical operation of those facilities according to good educational and engineering practices, all in accordance with applicable law, rules, and regulations.

(Added 1966, No. 23 (Sp. Sess.), § 6, eff. March 10, 1966.)

§ 2804 Repealed

[Repealed]

1981, No. 21.

§ 2805 Repealed

[Repealed]

2011, No. 139 (Adj. Sess.), § 51(f)(3), eff. May 14, 2012.

Chapter 87 Grants, Scholarships, and Education Loan Programs

Subchapter 1 General Provisions

§ 2821 Student Assistance Corporation; purpose

(a) There is hereby established a nonprofit public corporation to be known as the Vermont Student Assistance Corporation whose purpose shall be:

(1) to provide opportunities for persons who are residents of Vermont to attend colleges or other postsecondary education institutions by awarding grants, guaranteeing, making, financing, and servicing loans of funds to students qualifying under the terms and conditions set forth in this chapter;

(2) to provide career, educational, and financial aid counseling and information services; and

(3) for such other purposes not inconsistent therewith.

(b) The Corporation and its existence shall continue as long as it shall have notes, bonds, or other obligations outstanding, including notes, bonds, or other obligations hereafter issued or incurred, and until its existence is terminated by law. The net earnings of the Corporation, beyond that necessary for retirement of its notes, bonds, or other obligations or to implement the public purposes and programs authorized in this chapter shall not inure to the benefit of any person other than the State. Upon termination of the existence of the Corporation, title to all of the property owned by the Corporation, including any net earnings of the Corporation, shall vest in the State. The State reserves the right at any time to alter, amend, repeal, or otherwise change the structure, organization, programs, or activities of the Corporation, including the power to terminate the Corporation, subject to any limitation on the impairment of the obligations of any contract or contracts entered into by the corporation.

(c) Notwithstanding any general or special law to the contrary, the provisions of 8 V.S.A. chapter 73 shall not apply to the Corporation or to any loan made or serviced by the Corporation in accordance with this title.

(Added 1965, No. 198, § 1(a); amended 1975, No. 170 (Adj. Sess.), § 1; 1981, No. 174 (Adj. Sess.), § 1, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 1; 2003, No. 86 (Adj. Sess.), § 2; 2009, No. 96 (Adj. Sess.), § 3, eff. January 1, 2011; 2017, No. 22, § 30, eff. Jan. 1, 2011; 2019, No. 131 (Adj. Sess.), § 97.)

§ 2822 Definitions

As used in this chapter:

(1) “Corporation” means the Vermont Student Assistance Corporation.

(2) “Board” means the Board of Directors of the Vermont Student Assistance Corporation.

(3) “Student” means any person who:

(A) has graduated from a secondary school, satisfied the requirements for graduation by passing examinations covering the subject matter of a secondary school curriculum, or met the eligibility criteria established by the U.S. Secretary of Education for the receipt of student financial assistance under Title IV of the Higher Education Act, and in each case who is attending or plans to attend an approved postsecondary education institution; or

(B) is attending an approved postsecondary education institution. For the purposes of the student loan program, “student” means a student as defined by the Board and which definition shall not be inconsistent with federal regulations.

(4) “Parents” means a student’s parent or parents as determined by the Corporation consistently with the requirements of the federal financial assistance programs established under Title IV of the Higher Education Act.

(5) “Adjusted gross income” means an individual’s adjusted gross income under the laws of the United States relating to federal income taxes for the tax year next preceding the school year for which a grant or loan is sought.

(6) “Approved postsecondary education institution” means any institution of postsecondary education that is:

(A) certified by the State Board of Education as provided in section 176 or 176a of this title;

(B) accredited by an accrediting agency approved by the U.S. Secretary of Education pursuant to the Higher Education Act;

(C) a non-U.S. institution approved by the United States Secretary of Education as eligible for use of education loans made under Title IV of the Higher Education Act; or

(D) a non-U.S. institution designated by the Corporation as eligible for use of its grant awards.

(7) “Resident” means, with respect to a student, a student who has been domiciled in Vermont for the year preceding the date of commencement of the relevant semester or academic program. A residence established in Vermont for the purpose of attending an educational institution shall not of itself be sufficient to establish domicile in Vermont. Whenever a resident student loses his or her Vermont domicile, as in the case of a minor whose parents move from the State, the student shall thereafter be reclassified as a nonresident.

(8) “Taxable,” when used in reference to a note, bond, or other obligation means that the interest on that obligation is includable in the gross income of the holder under the laws of the United States relating to federal income taxes.

(9) “Higher Education Act” means the federal Higher Education Act of 1965, Pub. L. No. 89-329, 20 U.S.C. chapter 28, as amended, together with the regulations promulgated under that Act by the U.S. Secretary of Education.

(Added 1965, No. 198, § 2(a)-(i); amended 1967, No. 131, § 9; 1967, No. 371 (Adj. Sess.), § 1, eff. March 27, 1968; 1971, No. 175 (Adj. Sess.), § 1, eff. March 28, 1972; 1973, No. 69, § 1, eff. April 14, 1973; 1973, No. 157 (Adj. Sess.), § 1, eff. March 15, 1974; 1975, No. 170 (Adj. Sess.), § 2; 1985, No. 24, § 2, eff. April 26, 1985; 1993, No. 147 (Adj. Sess.), § 2; 2003, No. 21, § 2; 2003, No. 86 (Adj. Sess.), § 3; 2019, No. 131 (Adj. Sess.), § 98.)

§ 2823 Powers of Corporation

(a) The Corporation may acquire by gift or otherwise, hold, and dispose of property in fee or in trust, or any other estate, for the purposes set forth in this chapter and shall be an instrumentality of the State. The State shall support and maintain the Corporation.

(b) The Corporation has the general powers provided to Vermont nonprofit corporations.

(c) The Corporation is hereby designated as the state agency to receive federal funds assigned to the State of Vermont for student financial aid programs.

(d) The Corporation is authorized to make and finance the making of education loans and to issue its debt obligations for the purpose of acquiring funds therefor. No resolution or other action of the Corporation providing for the issuance of such debt obligations may be effective without the approval in writing of the Governor.

(e) The Corporation is authorized to develop and implement loan programs, including programs for the guaranteeing, servicing, originating, and financing of education loans for borrowers and lenders located both within and outside the State, including the federal Direct Loan Program and other education loans made pursuant to federal law. The Corporation is authorized to make loans to residents and nonresidents.

(f) The Corporation is authorized to borrow money and issue its debt obligations to further the governmental and public purposes set forth in this chapter, including the purchase, construction, renovation, reconstruction, rehabilitation, improvement, furnishing, and equipping of office or other business space to be owned or leased by the Corporation for use by the Corporation to further the governmental and public purposes set forth in this chapter. Notwithstanding subsection 2868(i) of this chapter, notes, bonds, or other obligations issued under this section may be direct and general obligations of the Corporation, and may be otherwise secured as the Corporation shall determine, including by a mortgage. No debt obligation issued under this subsection may be effective without the approval in writing of the Governor. Such obligations shall not be deemed to constitute a debt or liability or obligation of the State of Vermont or of any political subdivision of it, nor shall they be deemed to constitute a pledge of the faith and credit of the State or of any political subdivision thereof. Each obligation issued by the Corporation under this section shall contain on its face a statement to the effect that neither the faith and credit nor the taxing power of the State of Vermont or any political subdivision of it is pledged to the payment of the principal or the interest on these obligations.

(Added 1965, No. 198, § 1(b), (c); amended 1967, No. 131, § 1; 1975, No. 170 (Adj. Sess.), § 3; 1981, No. 174 (Adj. Sess.), § 2, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 3; 2001, No. 58, § 6, eff. June 16, 2001; 2003, No. 86 (Adj. Sess.), § 4.)

§ 2824 Repealed

[Repealed]

1973 (Adj. Sess.), No. 157, § 2, eff. March 15, 1974.

§ 2825 Tax exemptions

All real and personal property of the Corporation is exempt from taxation. All bonds, notes, and other obligations issued pursuant to this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose and those bonds, notes, and other obligations, and the interest on and income from them, except as otherwise provided by resolution of the Corporation authorizing the issuance of taxable debt pursuant to section 2868 of this title, and all activities of the Corporation and fees, charges, funds, revenues, incomes, and other monies of the Corporation whether or not pledged or available to secure the payment of these bonds, notes, or other obligations, or interest thereon, are exempt from all taxation, franchise taxes, fees, or special assessments of whatever kind except for transfer, inheritance, and estate taxes.

(Added 1965, No. 198, § 9; amended 1981, No. 174 (Adj. Sess.), § 3, eff. April 20, 1982; 2003, No. 86 (Adj. Sess.), § 5; 2019, No. 131 (Adj. Sess.), § 99.)

§ 2826 Statutory purposes

(a) The statutory purpose of the exemption for interest income from Vermont Student Assistance Corporation bonds in section 2825 of this title is to lower the cost of borrowing in order to finance education loan programs.

(b) The statutory purpose of the exemption for Vermont Student Assistance Corporation property tax in section 2825 of this title is to allow State instrumentalities that provide financial and information resources for postsecondary education and training to use all of their resources for those purposes.

(Added 2013, No. 200 (Adj. Sess.), § 1.)

§ 2827 Confidentiality of personally identifying information

Except as otherwise provided by law, or by consent of the individual identified in the record, information that directly or indirectly identifies applicants, recipients, beneficiaries, or participants in programs administered by the Corporation, including grant, loan, scholarship, outreach, or investment plan programs, is exempt from public inspection and copying under the Public Records Act and shall be kept confidential.

(Added 2015, No. 29, § 4.)

§ 2828 Financial aid eligibility for certain students

(a) Notwithstanding any provision of law to the contrary, a resident who is otherwise eligible for a State-funded financial aid program administered by the Corporation shall not be ineligible solely on the basis of such resident’s immigration status under federal law.

(b) The Corporation shall establish procedures and forms that enable residents eligible under subsection (a) of this section to apply for, and participate in, all State-funded student financial aid programs administered by the Corporation for which such residents are eligible to the full extent permitted by federal law. The Corporation may collect such information as is necessary to confirm eligibility for participation in programs administered by the Corporation.

(c) The Corporation may adopt rules pursuant to 3 V.S.A. chapter 25 as necessary to carry out the provisions of this section.

(d) The Corporation shall include information regarding the impact of this section and the number of students who receive financial aid pursuant to this section in its biannual report to the General Assembly pursuant to subsection 2835(c) of this title.

(Added 2023, No. 136 (Adj. Sess.), § 3, eff. July 1, 2025.)

Subchapter 2 Board of Directors

§ 2831 Membership; vacancies

The Corporation shall be governed and all of its powers exercised by a Board of Directors consisting of 11 members. The Governor shall appoint five members as follows: one person to be the financial aid officer of an institution of postsecondary education in the State of Vermont; one person to be a guidance counselor from a Vermont secondary school; and three members representing the general public. In making the appointments of the members representing the general public, the Governor shall give due consideration to the Board’s needs for expertise and experience in the management of a financial institution. The State Treasurer or his or her designee shall be a member. The Speaker of the Vermont House of Representatives and the Committee on Committees of the Vermont Senate shall each appoint one member from their respective legislative bodies to serve on the Board. The Board shall elect three additional members. All members shall be of full age, citizens of the United States, and residents of Vermont. All appointments shall be for terms of six years with the exception of legislative members whose terms shall expire at the end of six years or when their service in the Vermont General Assembly is completed, whichever shall first occur. The date of the expiration of the term of appointment in each case shall be June 30. Vacancies that may occur by reason of death or resignation shall be filled in the same manner as original appointments.

(Added 1965, No. 198, § 4(a), (b), (i); amended 1967, No. 131, § 2; 1989, No. 283 (Adj. Sess.), § 1; 2003, No. 86 (Adj. Sess.), § 6; 2011, No. 40, § 54, eff. May 20, 2011; 2019, No. 131 (Adj. Sess.), § 100.)

§ 2832 Organization and compensation

(a) The Board, with the advice and consent of the Governor, shall elect from its members a chair. The Board shall also elect from its members a vice chair and secretary. Each of the officers shall hold office for two years and shall be eligible for reelection.

(b) The Board shall serve without compensation except for expenses actually and necessarily incurred by them in the performance of their duties under this chapter.

(c) The Board shall adopt bylaws for the Corporation and may appoint a president and determine the president’s compensation and duties. The Chair annually shall notify the Governor, the Speaker of the House of Representatives, and the President Pro Tempore of the Senate of the president’s compensation.

(d) The Board may elect an executive committee to serve in the interval between meetings to transact such business of the Corporation as provided in the bylaws.

(Added 1965, No. 198, § 4(c), (d), (f), (g); amended 1967, No. 131, § 3; 1989, No. 283 (Adj. Sess.), § 2; 2003, No. 86 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 185, eff. Feb. 14, 2014.)

§ 2833 Meetings; quorum

The Board shall hold regular meetings and such special meetings as it deems necessary. A majority of the directors shall constitute a quorum for the transaction of any business unless the bylaws of the Corporation require a larger number.

(Added 1965, No. 198, § 4(e); amended 2003, No. 86 (Adj. Sess.), § 8.)

§ 2834 Powers and duties

(a) The Board has the power to adopt rules, regulations, policies, and procedures not inconsistent with law, governing the application for and the origination, servicing, and repayment of loans, the awarding of grants to students, and the Corporation’s other activities and programs.

(b) [Repealed.]

(Added 1965, No. 198, § 4(h), (j); amended 1967, No. 131, § 4; 2003, No. 86 (Adj. Sess.), § 9; 2013, No. 56, § 15, eff. May 30, 2013.)

§ 2835 Controls, audits, and reports

(a) Control of funds appropriated and all procedures incident to the carrying out of the purposes of this chapter shall be vested in the Board.

(b) The books of account of the Corporation shall be audited annually by an independent public accounting firm registered in the State of Vermont in accordance with government auditing standards issued by the U.S. Government Accountability Office (GAO) and the resulting audit report filed with the Secretary of Administration not later than November 1 each year.

(c) Biennially, the Board shall report to the General Assembly on its activities during the preceding biennium. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

(Added 1965, No. 198, § 8; amended 2003, No. 86 (Adj. Sess.), § 10; 2007, No. 121 (Adj. Sess.), § 5; 2013, No. 142 (Adj. Sess.), § 29; 2019, No. 104 (Adj. Sess.), § 5.)

Subchapter 3 Incentive Grants

§ 2841 Establishment; rules

A need-based grant program is hereby established to aid students who need financial assistance and are pursuing undergraduate studies and give promise of completing satisfactorily a degree program or who have been accepted for admission to an approved postsecondary education institution for undergraduate studies. The Board may establish rules, regulations, and standards for the awards under this subchapter.

(Added 1965, No. 198, § 5(a); amended 2003, No. 86 (Adj. Sess.), § 11.)

§ 2842 Eligibility

(a) To qualify for an incentive grant for the first year of undergraduate study, a student must be in attendance at an approved postsecondary education institution or be accepted for admission and be enrolled as a full-time or part-time student at such an institution. For each year following the first year of undergraduate study, the student must have been certified by the institution attended to be in good standing and to give promise of satisfactory completion of a course of study leading to a degree or diploma.

(b) Any qualified person may apply for an incentive grant in addition to any other scholarship aid.

(Added 1965, No. 198, § 5(b), (g); amended 1967, No. 371 (Adj. Sess.), § 2, eff. March 27, 1968; 2003, No. 86 (Adj. Sess.), § 12.)

§ 2843 Applications, certificates, and reports

(a) The recipient must apply for an incentive grant at least annually. Grants may be for a maximum of five full-time equivalent school years.

(b) Each applicant for an incentive grant shall furnish a certificate of income with the application. Attached to the certificate shall be a form of consent, executed by the student and any other required persons, granting permission to the Vermont Commissioner of Taxes to disclose the income tax information required by subsection (c) of this section.

(c) The Vermont Commissioner of Taxes, when requested by the Corporation, shall compare any certificate filed pursuant to this subchapter with the State income tax returns filed by the persons making such certificate and shall report any instances of discrepancy to the Corporation.

(d) [Repealed.]

(Added 1965, No. 198, § 5(b), (d), (e), (f); amended 1967, No. 131, § 5; 1967, No. 371 (Adj. Sess.), § 3, eff. March 27, 1968; 2003, No. 86 (Adj. Sess.), § 13; 2015, No. 29, § 5.)

§ 2844 Amount received; proration

(a) Each undergraduate student who qualifies for an incentive grant shall apply on forms provided by the Corporation. The Corporation may consider the student for an incentive grant if the student meets the need-based eligibility standards established by the Board. These standards shall give due consideration to all relevant factors affecting the student’s need, including the adjusted gross income and other sources of income of the student’s parents; the adjusted gross income and other sources of income of a nondependent student; the assets of parents and students; the number of a parent’s or nondependent student’s children who are students enrolled in approved postsecondary education institutions at the same time; and any unusual circumstances that affect the family financial strength. Incentive grants shall be awarded on a rolling basis to eligible applicants based upon established need, and in total amount shall not exceed the funds made available from legislative appropriation or other sources. In no case shall a student’s award be larger than that needed to attend the approved postsecondary education institution of the student’s choice.

(b) The Corporation may prorate incentive grants on the basis of semesters, other recognized portions of a school year, or course load.

(c) Vermont resident students enrolled at the Medical College of the University of Vermont or enrolled in a program leading to the degree of Doctor of Veterinary Medicine shall be eligible to apply for an incentive grant and shall be subject to the provisions of subsection (b) of this section. In addition, veterinary students shall be eligible for grants not to exceed twice the amount of the average grant award made to full-time undergraduate students in the previous year under subsection (a) of this section.

(Added 1965, No. 198, § 5(c), (h); amended 1967, No. 131,§§ 6, 7; 1967, No. 371 (Adj. Sess.), § 4, eff. March 27, 1968; 1969, No. 89; 1971, No. 175 (Adj. Sess.), § 2, eff. March 28, 1972; 1975, No. 155 (Adj. Sess.); 1995, No. 63, § 188; 2003, No. 86 (Adj. Sess.), § 14; 2013, No. 92 (Adj. Sess.), § 186, eff. Feb. 14, 2014.)

§ 2845 Trust fund; grants; students in Department for Children and Families custody

(a) The Board shall establish a trust fund to be used to provide grants for students who do not have parental support and are or have been under the custody of the Commissioner for Children and Families. The Board may draw up to 90 percent of the assets in the fund for these purposes.

(b) The trust fund shall consist of:

(1) funds appropriated by the General Assembly; and

(2) any gifts, grants, or contributions made to the trust fund.

(c) The Board may determine whether the trust fund is to be managed by the State Treasurer or by a private firm contracted at the direction of the Board.

(d) Any amount remaining in the trust fund at the end of any fiscal year and any interest accruing to the trust fund shall remain in the fund.

(e) A child who is under the custody of the Commissioner for Children and Families, or a young adult between the ages of 18 and 24 who was under the custody of the Commissioner for Children and Families for at least six months when that person was between the ages of 16 and 18, and who is accepted for degree study at the Vermont State Colleges, the University of Vermont, or a Vermont independent college, is eligible for an annual grant under this section, to the extent that funds are available in the trust fund. Upon certification by the Vermont State Colleges, the University of Vermont, or a Vermont independent college that a Vermont resident student who is eligible under this section has matriculated in a degree program at a Vermont college or university, the student may receive a grant if the student’s financial aid eligibility leaves remaining financial need following the student and the family contributions, if any, and the availability of all other sources of gift aid. Each grant, together with the student and the family contributions, if any, and all other sources of gift aid, shall not exceed the full cost of tuition, fees, room, and board, and no individual annual grant may exceed $3,000.00. The Board may prorate the funds appropriated for use under this section where the collective need of the eligible applicants exceeds the funds appropriated. In addition, the Board may prorate a grant based on a student’s full- or part-time enrollment status.

(f) A person may receive a grant under this section for each of up to six consecutive years. A young adult who receives a grant under this section prior to reaching 25 years of age shall continue to be eligible for grants under this section until six years from the date of matriculation or until he or she has obtained an undergraduate degree, whichever comes first.

(g) The Board shall coordinate implementation of this section with the Commissioner for Children and Families, the President of the Association of Vermont Independent Colleges, the Chancellor of the Vermont State Colleges, and the President of the University of Vermont. The Board may establish procedures and policies or adopt rules to implement this section.

(Added 2003, No. 72 (Adj. Sess.), § 1, eff. Feb. 6, 2004; amended 2011, No. 58, § 12, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 187, eff. Feb. 14, 2014.)

§ 2846 Advancement grants

(a) The Corporation may establish an advancement grant program for residents pursuing nondegree education and training opportunities who do not meet the definition of student in subdivision 2822(3) of this title and who may not meet the requirements of this subchapter.

(b) Advancement grants may be used at institutions that are not approved postsecondary education institutions.

(c) The Corporation may adopt rules or establish policies, procedures, standards, and forms for advancement grants, including the requirements for applying for and using the grants and the eligibility requirements for the institutions where the grants may be used. Such rules shall be consistent with subsection (d) of this section.

(d) Notwithstanding subsection (a) of this section, applicants shall not be ineligible for the advancement grant solely on account of the applicant’s residency status under subdivision 2822(7) of this title if that applicant:

(1) qualifies as a refugee pursuant to 8 U.S.C. § 1101(a)(42) (definition of refugee);

(2) is granted parole to enter the United States pursuant to 8 U.S.C. § 1182(d)(5) (temporary admission of nonimmigrants for urgent humanitarian reasons); or

(3) is issued a special immigrant visa pursuant to the Afghan Allies Protection Act of 2009, Pub. L. No. 111-8 (8 U.S.C. § 1101 note), as amended.

(Added 2003, No. 86 (Adj. Sess.), § 15; amended 2019, No. 80, § 4; 2023, No. 136 (Adj. Sess.), § 1, eff. July 1, 2024.)

Subchapter 4 Honor Scholarships

§ 2851 Establishment

Vermont Honor Scholarships are hereby established for secondary school seniors who plan to attend an approved postsecondary education institution.

(Added 1965, No. 198, § 6(a); amended 1999, No. 24, § 2, eff. May 19, 1999; 2003, No. 86 (Adj. Sess.), § 17.)

§ 2852 Eligibility

(a) All resident, qualified secondary school seniors are eligible to be nominated by their secondary school for a Vermont Honor Scholarship.

(b) Vermont Honor Scholarships shall be awarded on the basis of merit as demonstrated by scholastic excellence and participation in extracurricular and community service activities to be determined by such criteria as the Board shall prescribe.

(Added 1965, No. 198, § 6(b), (c); amended 1999, No. 24, § 3, eff. May 19, 1999; 2003, No. 86 (Adj. Sess.), § 18.)

§ 2853 Application

A qualified student may be awarded an Honor Scholarship without affecting eligibility for an incentive grant. The Honor Scholarship amount shall not be considered in determining the calculation of the initial amount of the grant, unless the student’s total grant and scholarship assistance from all sources exceeds the cost of attendance as defined under the Higher Education Act.

(Added 1965, No. 198, § 6(f); amended 2003, No. 86 (Adj. Sess.), § 19.)

§ 2854 Amount; number; disbursement

(a) Each Vermont Honor Scholarship shall be an equal amount and no less than $1,000.00 as determined by the Board.

(b) Each secondary school, or a border school serving Vermont secondary school students, may nominate a senior for a Vermont Honor Scholarship.

(c) The Scholarship shall be disbursed to the approved postsecondary education institution at which the recipient enrolls.

(Added 1965, No. 198, § 6(d), (e); amended 1999, No. 24, § 4, eff. May 19, 1999; 2003, No. 86 (Adj. Sess.), § 20.)

Subchapter 4A National Guard

§ 2856 Repealed

[Repealed]

(Added 1999, No. 62, § 61; amended 2003, No. 39, § 1; 2003, No. 86 (Adj. Sess.), § 21; 2007, No. 46, § 5, eff. May 23, 2007; 2007, No. 154 (Adj. Sess.), § 6; 2009, No. 4, § 86, eff. April 24, 2009; 2011, No. 149 (Adj. Sess.), § 8; repealed on July 1, 2022 by 2018, No. 11 (Sp. Sess.), § E.215.2.)

§ 2857 Vermont National Guard Tuition Benefit Program

(a) Program creation. The Vermont National Guard Tuition Benefit Program (Program) is created, under which a member of the Vermont National Guard (member) who meets the eligibility requirements in subsection (c) of this section is entitled to the following tuition benefit for up to full-time attendance:

(1) For courses at any Vermont State College institution or the University of Vermont and State Agricultural College (UVM), the benefit shall be the in-state residence tuition rate for the relevant institution.

(2) For courses at any eligible Vermont private postsecondary institution, the benefit shall be the in-state tuition rate charged by UVM.

(3) For courses at an eligible training institution offering nondegree, certificate training, or continuing education programs, the benefit shall be the lower of the institution’s standard tuition or the in-state tuition rate charged by UVM.

(4) For courses at a non-Vermont approved postsecondary education institution approved for federal Title IV funding where the degree program is not available in Vermont, the benefit shall be the in-state tuition rate charged by UVM.

(b) Tuition benefit.

(1) The tuition benefit provided under the Program shall be paid on behalf of the member by the Vermont Student Assistance Corporation (VSAC), subject to the appropriation of funds by the General Assembly specifically for this purpose. An eligible Vermont postsecondary institution that accepts or receives the tuition benefit on behalf of a member shall charge the member the tuition rate for an in-state student. The amount of tuition for a member who attends an educational institution under the Program on less than a full-time basis shall be reduced to reflect the member’s course load in a manner determined by VSAC under subdivision (f)(1) of this section.

(2) The tuition benefit shall be conditioned upon the member’s executing a promissory note obligating the member to repay the member’s tuition benefit, in whole or in part, if the member fails to complete the period of Vermont National Guard service required in subsection (d) of this section, or if the member’s benefit is terminated pursuant to subdivision (e)(1) of this section.

(c) Eligibility.

(1) To be eligible for the Program, an individual, whether a resident or nonresident, shall satisfy all of the following requirements:

(A) be an active member of the Vermont National Guard;

(B) have successfully completed basic training;

(C) be enrolled:

(i) at UVM, a Vermont State College, or any other college or university located in Vermont in a program that leads to an undergraduate certificate, an undergraduate degree, or a graduate degree;

(ii) at an eligible training institution in a program that leads to a certificate or other credential recognized by VSAC; or

(iii) at a non-Vermont approved postsecondary education institution approved for Title IV funding only when the degree program is not available in Vermont;

(D) [Repealed.]

(E) continually demonstrate satisfactory academic progress as determined by criteria established by the Vermont National Guard and VSAC, in consultation with the educational institution at which the individual is enrolled under the Program;

(F) have used available post-September 11, 2001 tuition benefits and other federally funded military tuition assistance; provided, however, that this subdivision shall not apply to:

(i) tuition benefits and other federally funded military tuition assistance for which the individual has not yet earned the full amount of the benefit or tuition;

(ii) Montgomery GI Bill benefits;

(iii) post-September 11, 2001 educational program housing allowances;

(iv) federal educational entitlements;

(v) National Guard scholarship grants;

(vi) loans under section 2856 of this title; and

(vii) other nontuition benefits; and

(G) have submitted a statement of good standing to VSAC signed by the individual’s commanding officer within 30 days prior to the beginning of each semester.

(2) An individual may receive more than one undergraduate certificate, undergraduate degree, graduate degree, or other credential recognized by VSAC under the Program, provided that the cost of all certificates, degrees, and credentials received by the individual under the Program does not exceed an amount equal to twice the full-time in-state tuition rate charged by UVM for completion of an undergraduate baccalaureate degree.

(d) Service commitment.

(1) For each full academic year of attendance under the Program, a member shall be required to serve two years in the Vermont National Guard in order to receive the full tuition benefit under the Program.

(2) If a member’s service with the Vermont National Guard terminates before the member fulfills this two-year service commitment, other than for good cause as determined by the Vermont National Guard, the individual shall reimburse VSAC a pro rata portion of the tuition paid under the Program pursuant to the terms of an interest-free reimbursement promissory note signed by the individual at the time of entering the Program.

(3) For members participating in the Program on a less than full-time basis, the member’s service commitment shall be at the rate of one month of Vermont National Guard service commitment for each credit hour, not to exceed 12 months of service commitment for a single semester.

(e) Termination of tuition benefit.

(1) The Office of the Vermont Adjutant and Inspector General may terminate the tuition benefit provided an individual under the Program if:

(A) the individual’s commanding officer revokes the statement of good standing submitted pursuant to subdivision (c)(7) of this section as a result of an investigation or disciplinary action that occurred after the statement of good standing was issued;

(B) the individual is dismissed from the educational institution in which the individual is enrolled under the Program for academic or disciplinary reasons; or

(C) the individual withdraws without good cause from the educational institution in which the individual is enrolled under the Program.

(2) If an individual’s tuition benefit is terminated pursuant to subdivision (1) of this subsection, the individual shall reimburse VSAC for the tuition paid under the Program, pursuant to the terms of an interest-free reimbursement promissory note signed by the individual at the time of entering the Program; shall be responsible on a pro rata basis for the remaining tuition cost for the current semester or any courses in which the individual is currently enrolled; and shall be ineligible to receive future tuition benefits under the Program.

(3) If an individual is dismissed for academic or disciplinary reasons from any postsecondary educational institution before receiving tuition benefits under the Program, the Office of the Adjutant and Inspector General may make a determination regarding the individual’s eligibility to receive tuition benefits under the Program.

(f) Adoption of policies, procedures, and guidelines.

(1) VSAC, in consultation with the Office of the Adjutant and Inspector General, shall adopt policies, procedures, and guidelines necessary to implement the provisions of this section, which shall include eligibility, application, and acceptance requirements, proration of service requirements for academic semesters or attendance periods shorter than one year, data sharing guidelines, and the criteria for determining “good cause” as used in subdivisions (d)(2) and (e)(1)(C) of this section.

(2) Each educational institution participating in the Program shall adopt policies and procedures for the enrollment of members under the Program. These policies and procedures shall be consistent with the policies, procedures, and guidelines adopted by VSAC under subdivision (1) of this subsection.

(g) Reports.

(1) On or before November 1 of each year, the President, Chancellor, or equivalent position of each educational institution that participated in the Program during the immediately preceding school year shall report to the Vermont National Guard and VSAC regarding the number of members enrolled at its institution during that school year who received tuition benefits under the Program and, to the extent available, the courses or program in which the members were enrolled.

(2) On or before January 15 of each year, the Vermont National Guard and VSAC shall report these data and other relevant performance factors, including information pertaining to the achievement of the goals of this entitlement program and the costs of the Program to date, to the Governor, the House and Senate Committees on Education, and the House Committees on Appropriations and on Government Operations and Military Affairs. The provisions of 2 V.S.A. § 20(d), expiration of reports, shall not apply to the reports to be made under this subsection.

(Added 2018, No. 11 (Sp. Sess.), § E.215.1; amended 2019, No. 6, § 85, eff. April 22, 2019; 2019, No. 88 (Adj. Sess.), § 52, eff. March 4, 2020; 2021, No. 140 (Adj. Sess.), § 1, eff. May 27, 2022; 2023, No. 66, § 4, eff. July 1, 2023; 2025, No. 72, § 11, eff. June 27, 2025.)

Subchapter 5 Education Loan Program

§ 2861 Establishment

There is hereby created an Education Loan Program for the purpose of assisting qualified students to pursue schooling beyond the secondary level. It is the intention of the Legislature in establishing the Education Loan Program under this subchapter to serve Vermont resident students and their families throughout their educational careers; and to serve nonresident students attending Vermont postsecondary institutions and the families of those students throughout their educational careers. It is also the intention of the Legislature that education loans made under this subchapter not be collateralized at the time of their origination.

(Added 1965, No. 198, § 7(a); amended 2003, No. 86 (Adj. Sess.), § 23.)

§ 2862 Rules and regulations

(a) The Board shall adopt rules and regulations and establish policies and procedures that it deems necessary to carry out the purpose of this subchapter. The rules and regulations so adopted shall include provisions relating to borrower eligibility, maximum loan amounts, interest rates, and other charges.

(b) In the case of loans reinsured under the Higher Education Act, the rules and regulations shall conform to the requirements of that act.

(c) Education loans guaranteed, made, financed, serviced, or otherwise administered by the Corporation are exempt from the interest rate and charges limitations of 9 V.S.A. §§ 41a and 42, but those rates and charges shall reflect the Corporation’s costs of funds, its costs of education loan financing and servicing, and the risks associated with different types of education loans.

(d) Loans made pursuant to the Higher Education Act by institutions doing business in Vermont shall be made pursuant to this chapter.

(Added 1965, No. 198, § 7(b); amended 1967, No. 131, § 8; 1967, No. 371 (Adj. Sess.), § 5, eff. March 27, 1968; 1969, No. 83, § 1, eff. April 18, 1969; 1973, No. 51; 1983, No. 76, § 2; 1987, No. 79, § 2, eff. June 9, 1987; 2003, No. 86 (Adj. Sess.), § 24.)

§ 2863 Guarantee

The Corporation is authorized to guarantee that any education loan notes properly executed shall be repaid according to their tenor and, if guaranteed under the Higher Education Act, to the extent authorized under that act, provided, that in the event of default, the holder has complied with the rules, regulations, and procedures of the Corporation, and with the Act and the regulations promulgated under the Act, regarding the making, servicing, and diligent collection of education loans until assigned to the Corporation as provided in this chapter. The Corporation may make loans that have no guarantee.

(Added 1965, No. 198, § 7(c); amended 1975, No. 170 (Adj. Sess.), § 4; 1993, No. 147 (Adj. Sess.), § 4; 2003, No. 86 (Adj. Sess.), § 25; 2019, No. 131 (Adj. Sess.), § 102.)

§ 2864 Reserve fund

(a) The Corporation shall establish and maintain an allowance for loans not covered by a federal or other guaranty or insurance, using historical loan delinquency and default rates and other relevant information. To the extent the reserve fund contains any monies appropriated by the State, such reserve funds shall be held and administered in accordance with 32 V.S.A. § 432 and 433. Any such allowance may not be funded from monies appropriated by the General Assembly to the Corporation unless specifically appropriated for such purposes.

(b) The Corporation is authorized to negotiate and enter into agreement with the U.S. Secretary of Education to reinsure its guarantee of any loans made under this chapter, and to amend such agreements, consistent with this chapter.

(Added 1965, No. 198, § 7(d); amended 1969, No. 83, § 2, eff. April 18, 1969; 1981, No. 174 (Adj. Sess.), § 4, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 5; 2003, No. 86 (Adj. Sess.), § 26.)

§ 2865 Default

A holder of a loan guaranteed pursuant to this chapter may submit a default claim to the Corporation for payment when a borrower has failed to make an installment payment of principal or interest or both when due or to comply with other terms of the note or other written evidence of agreement, which persists beyond the delinquency period provided in the Higher Education Act. Upon the holder’s compliance with the servicing and the default claim filing requirements specified in section 2863 of this chapter, the Corporation shall pay the holder the amount due as described in section 2863 of this title. Upon reimbursement, the holder shall assign the note to the Corporation, but such assignment may be without representation or warranty, expressed or implied, and without recourse.

(Added 1965, No. 198, § 7(e); amended 1969, No. 83, § 3, eff. April 18, 1969; 1975, No. 170 (Adj. Sess.), § 5; 1993, No. 147 (Adj. Sess.), § 6; 2003, No. 86 (Adj. Sess.), § 27.)

§ 2866 Rights of minors

A person under 18 years of age shall not be disqualified or lack capacity by reason of the person’s minority, but shall have the rights, powers, privileges, and obligations of a person of full age with respect to executing instruments under this subchapter.

(1965, No. 198, § 7(f); amended 2003, No. 86 (Adj. Sess.), § 28.)

§ 2867 Reserve and pledged equity funds

(a) The Corporation may create and establish one or more special funds, referred to in this section as “debt service reserve funds” or “pledged equity funds.”

(b) The Corporation shall pay into each debt service reserve fund:

(1) Any monies appropriated and made available by the State for the purpose of such fund.

(2) Any proceeds of the sale of notes, bonds, or other debt instruments, to the extent provided in the resolution or resolutions of the Corporation authorizing the issuance thereof.

(3) Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations, that may be made available to the Corporation for the purpose of such fund from any other source or sources. All monies or financial instruments held in any debt service reserve fund created and established under this section, except as provided in this section, shall be used, as required, solely for the payment of the principal of the bonds, notes, or other debt instruments secured in whole or in part by such fund or of the payments with respect to the bonds, notes, or other debt instruments specified in any resolution of the Corporation as a sinking fund payment, the purchase or redemption of the bonds, the payment of interest on the bonds, notes, or other debt instruments, or the payment of any redemption premium required to be paid when the bonds, notes, or other debt instruments are redeemed prior to maturity, or to reimburse the issuer of a liquidity or credit facility, bond insurance, or other credit enhancement for the payment by such party of any of the foregoing amounts on the Corporation’s behalf; provided, however, that the monies or financial instruments in any such debt reserve fund shall not be drawn upon or withdrawn at any time in such amounts as would reduce the amount of such funds to less than the debt service reserve requirement established by resolution of the Corporation for such fund as provided in this section except for the purpose of paying, when due, with respect to bonds secured in whole or in part by such fund, the principal, interest, redemption premiums, and sinking fund payments and reimbursing, when due, the issuer of any credit enhancement for any such payments made by it, for the payment of which other monies of the Corporation are not available. Any income or interest earned by, or increment to, any debt service reserve fund due to the investment thereof may be transferred by the Corporation to other funds or accounts of the Corporation to the extent it does not reduce the amount of such debt service reserve fund below the debt service reserve requirement for such fund.

(c) The Corporation shall pay into each pledged equity fund:

(1) Any monies appropriated and made available by the State for the purpose of such fund.

(2) Any proceeds of the sale of notes, bonds, or other debt instruments, to the extent provided in the resolution or resolutions of the Corporation authorizing the issuance thereof.

(3) Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations, that may be made available to the Corporation for the purpose of such fund from any other source or sources. All monies or financial instruments held in any pledged equity fund created and established under this section, except as provided in this section, shall be used, as required, solely to provide pledged equity or over-collateralization of any trust estate of the Corporation to the issuer of a liquidity or credit facility, bond insurance, or other credit enhancement obtained by the Corporation; provided, however, that the monies or financial instruments in any such pledged equity fund shall not be drawn upon or withdrawn from such fund at any time in such amounts as would reduce the amount of such funds to less than the pledged equity requirement established by resolution of the Corporation for such fund as hereafter provided except for the purposes set forth in, and in accordance with, the governing resolution. Any income or interest earned by, or increment to, any pledged equity fund due to the investment thereof may be transferred by the Corporation to other funds or accounts of the Corporation to the extent it does not reduce the amount of such pledged equity fund below the requirement for such fund. Anything in this subdivision to the contrary notwithstanding, upon the defeasance of the bonds, notes, or other debt instruments with respect to which the pledged equity requirement was established, the Corporation may transfer amounts in such fund to another fund or account of the Corporation proportionately to the amount of such defeasance, provided that the Corporation shall repay to the State any amount appropriated by the State pursuant to subsection (f) of this section.

(d) The debt service reserve and pledged equity requirements for any fund established under this section shall be established by resolution of the Corporation prior to the issuance of any bonds, notes, or other debt instruments secured in whole or in part by a debt service reserve fund or prior to entering into any credit enhancement agreement and shall be the amount determined by the Corporation to be reasonably required in light of the facts and circumstances of the particular debt issue or credit enhancement; provided that the maximum amount of the State’s commitment with respect to any pledged equity fund shall be determined by the Corporation at or prior to entering into any credit enhancement agreement related to such pledged equity fund. The Corporation shall not at any time issue bonds, notes, or other debt instruments secured in whole or in part by a debt service reserve fund or enter into any credit enhancement agreement that requires establishment of a pledged equity fund created and established under this section unless:

(1) the Corporation at the time of such issuance or execution shall deposit in such fund from the proceeds of such bonds, notes, or other debt instruments, or from other sources, an amount that, together with the amount then in such fund, will not be less than the requirement established for such fund at that time;

(2) the Corporation has made a determination at the time of the authorization of the issuance of such bonds, notes, or other debt instruments, or entering into such credit enhancement agreement that the Corporation will derive revenues or other income from the education loans that secure such bonds, notes, or other debt instruments or that relate to any credit enhancement agreement sufficient to provide, together with all other available revenues and income of the Corporation, other than any amounts appropriated by the State pursuant to this section, for the payment of such bonds, notes, and other debt instruments and reimbursement to the issuer of any credit enhancement, the payment of any expected deposits into any pledged equity fund established with respect to such credit enhancement and the payment of all costs and expenses incurred by the Corporation with respect to the program or purpose for which such bonds, notes, or other debt instruments are issued; and

(3) the State Treasurer or his or her designee has provided written approval to the Corporation that the Corporation may issue such bonds, notes, or other debt instruments and enter into any related credit enhancement agreement.

(e) In computing the amount of the debt service reserve or pledged equity funds for the purpose of this section, securities in which all or a portion of such funds shall be invested shall be valued at par if purchased at par or at amortized value, as such term is defined by resolution of the Corporation, if purchased at other than par.

(f) In order to ensure the maintenance of the debt service reserve fund requirement in each debt service reserve fund established by the Corporation under this section, there may be appropriated annually and paid to the Corporation for deposit in each such sum as shall be certified by the Chair of the Corporation to the Governor, the President of the Senate, and the Speaker of the House as is necessary to establish or restore each such debt service reserve fund to an amount equal to the requirement for each such fund. The Chair shall annually, on or about February 1, make, execute, and deliver to the Governor, the President of the Senate, and the Speaker of the House, a certificate stating the sum required to restore each such fund to the amount equal to the requirement for each such fund, and the Governor shall, on or before March 1, submit a request for appropriations in the amount so certified, and such amount may be appropriated, and if appropriated, shall be paid to the Corporation during the then current State fiscal year. In order to ensure the funding of the pledged equity fund requirement in each pledged equity fund established by the Corporation under this section at the time and in the amount determined at the time of entering into any credit enhancement agreement related to a pledged equity fund, there may be appropriated and paid to the Corporation for deposit in each such fund, such sum as shall be certified by the Chair of the Corporation, to the Governor, the President of the Senate, and the Speaker of the House, as is necessary to establish each such pledged equity fund to an amount equal to the amount determined by the Corporation at the time of entering into any credit enhancement agreement related to a pledged equity fund, provided that the amount requested, together with any amounts previously appropriated pursuant to this subsection for a particular pledged equity fund, shall not exceed the maximum amount of the State’s commitment, as determined by the Corporation pursuant to subsection (d) of this section. The Chair shall, on or about the February 1 next following the designated date for fully funding a pledged equity fund, make, execute, and deliver to the Governor, the President of the Senate, and the Speaker of the House a certificate stating the sum required to bring each such fund to the amount equal to the requirement for each such fund or to otherwise satisfy the State’s commitment with respect to each such fund, and the Governor shall, on or before March 1, submit a request for appropriations in the amount so certified, and such amount may be appropriated, and if appropriated, shall be paid to the Corporation during the then-current State fiscal year. The combined principal amount of bonds, notes, and other debt instruments outstanding at any time and secured in whole or in part by a debt service reserve fund established under this section and the aggregate commitment of the State to fund pledged equity funds pursuant to this subsection shall not exceed $50,000,000.00, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the Corporation in contravention of the Constitution of the United States. Notwithstanding anything in this section to the contrary, the State’s obligation with respect to funding any pledged equity fund shall be limited to its maximum commitment, as determined by the Corporation pursuant to subsection (d) of this section and the State shall have no other obligation to replenish or maintain any pledged equity fund.

(Added 2009, No. 2, § 1, eff. March 31, 2009; amended 2011, No. 40, § 55a, eff. May 20, 2011; 2019, No. 131 (Adj. Sess.), § 103.)

§ 2868 Notes, bonds, and other obligations

(a) Power to issue obligations. The Corporation may issue its negotiable notes, bonds, and other obligations in such principal amount as the Corporation determines necessary to provide sufficient funds for the availability of loans for educational purposes. The notes, bonds, and other obligations may be issued in taxable form or nontaxable form, or both. The taxability of one series shall not affect the taxability of any other series, nor shall the issuance of taxable obligations be deemed a waiver of the right of this State or the Corporation to issue nontaxable obligations.

(b) Repayment. The Corporation may make payment of the principal of and interest on its notes, bonds, and other obligations and may determine the funding, refunding, or renewal of the reserves and sinking funds to secure the notes, bonds, and other obligations, and all other expenditures of the Corporation incident to and necessary or convenient to carry out such corporate purpose, including costs of issuance of such debt. The Corporation may contract with any person, including the State of Vermont or the United States, or any of their agencies or instrumentalities, to guarantee all or a part of the principal of or interest on the Corporation’s obligations or on the education loans made, purchased, guaranteed, or serviced by the Corporation.

(c) Power to determine nature of debt obligations. In furtherance of its corporate purposes, with respect to the issuance of its notes, bonds, and other debt obligations, the Corporation may by resolution provide:

(1) for the pledging or granting of a security interest in all or a portion of its property and revenues, including the granting of security interests of differing priorities in education loans and the revenues associated therewith, subject to such agreements as may then exist with holders of the Corporation’s notes, bonds, or other obligations;

(2) the terms upon which payments are to be made upon such notes, bonds, and other obligations by the Corporation;

(3) the form of such notes, bonds, and other obligations, which may include “book entry” if the Corporation so determines;

(4) the conditions upon which such notes, bonds, and other obligations may be transferred; and

(5) for limitations on the Corporation’s issuance of additional notes, bonds, or other debt obligations, and on the expenditure of revenues related to them; and upon the refunding of its outstanding or other notes, bonds, or other obligations.

(d) Nonenumerated powers. The Corporation has the power to exercise all or part of a combination of the powers granted in this chapter; to make covenants other than and in addition to, but not inconsistent with, the covenants expressly authorized in this section; to make such covenants and to do any and all acts and things as may be necessary or prudent to adequately secure its notes, bonds, or other obligations or as will tend to make its notes, bonds, and other obligations more marketable notwithstanding that such covenants, acts, or things are not enumerated in this section.

(e) Pledges. Any pledge made by the Corporation shall be valid and binding from the time when the pledge is made; the revenues, monies, or property so pledged and thereafter received by the Corporation shall immediately be subject to the lien of the pledge without any physical delivery of it or further act. That pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Corporation, irrespective of whether those parties have notice of it.

(f) Indemnification. Neither the members of the Board nor executive officers of the Corporation nor any other person executing the Corporation’s notes, bonds, or other obligations shall be subject to any personal liability or accountability by reason of the issuance of such notes, bonds, or other obligations.

(g) Fully negotiable instruments. Notwithstanding any provision of law to the contrary, a bond, note, or other obligation issued under this chapter is fully negotiable for all purposes of 9A V.S.A. § 1-101 et seq., and each holder or owner of such, or of any coupon appurtenant to them, by accepting the bond or note or other obligation or coupon shall be conclusively deemed to have agreed that such instrument is fully negotiable for those purposes, and all bonds, notes, or other obligations and interest coupons appertaining to them issued by the Corporation shall have and are hereby declared to have all the qualities and incidents of investment securities under 9A V.S.A. § 1-101 et seq., but no provision of those sections respecting the filing of a financing statement to perfect a security interest shall be applicable to any pledge made or security interest created in connection with the issuance of the bonds, notes, other obligations, or coupons.

(h) No impairment by the State. The State does hereby pledge to and agree with the holders of the notes, bonds, and other obligations issued under this chapter that the State will not limit or restrict the rights hereby vested in the Corporation to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes or other obligations. Neither will the State in any way impair the rights and remedies of the holders until the notes and bonds and other obligations, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The Corporation is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds or other obligations.

(i) No liability of the State. Notes, bonds, or other obligations issued under the provisions of this chapter shall not be deemed to constitute a debt or liability or obligation of the State of Vermont or of any political subdivision of it, nor shall it be deemed to constitute a pledge of the faith and credit of the State or of any political subdivision, but shall be payable solely from the revenues or assets of the Corporation pledged to support them. Each obligation issued by the Corporation shall contain on its face a statement to the effect that the Corporation shall not be obligated to pay the same nor the interest on it except from the revenues or assets pledged for those purposes and that neither the faith and credit nor the taxing power of the State of Vermont or of any political subdivision of it is pledged to the payment of the principal of or the interest on these obligations.

(j) Legal investment. Notwithstanding any provision of law to the contrary, the State and all public officers, governmental units, and agencies of the State; all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business; all insurance companies, insurance associations, and other persons carrying on an insurance business; all credit unions; and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, monies, or other funds belonging to them or within their control in any bonds or notes or other obligations issued under this chapter, and the bonds or notes or other obligations are authorized security for any and all public deposits.

(k) Role of the Corporation. The Corporation is designated as the guarantor, servicer, and secondary loan market for all educational loans in this State.

(l) 8 V.S.A. Chapter 73 inapplicable. Notwithstanding any general or special law to the contrary, the provisions of 8 V.S.A. chapter 73 (licensed lenders, mortgage brokers, mortgage loan originators, sales finance companies, and loan solicitation companies) shall not apply to the Corporation or to any loan made, purchased, or guaranteed pursuant to this chapter.

(m) Interest rate exchange agreements. The Corporation may enter into one or more agreements for the exchange of interest rates, cash flows, or payments, to reduce net borrowing costs, achieve desirable net effective interest rates in connection with its issuance and sale of debt obligations, and to provide for an efficient means of debt management.

(Added 1981, No. 174 (Adj. Sess.), § 5, eff. April 20, 1982; amended 1985, No. 24, § 1, eff. April 26, 1985; 1989, No. 29, § 1 eff. April 26, 1989; 1993, No. 147 (Adj. Sess.), § 7; 2019, No. 131 (Adj. Sess.), § 104; 2021, No. 20, § 64.)

§ 2869 Loan cancellation; mathematics, science, and computer science teachers

(a) Loans obtained under this subchapter may be partially or completely cancelled and forgiven for a borrower who is employed for a complete academic school year as a full-time licensed teacher:

(1) in a Vermont elementary or secondary school that is approved by the State Board; and

(2) in the subject area of mathematics, science, or computer science during a year when there is a critical shortage of licensed teachers in that area.

(b) Annually, the Board of the Corporation shall determine, after consultation with the Secretary, whether a critical shortage of licensed teachers exists in each of the subject areas of mathematics, science, and computer science.

(c) The Board shall determine the amount of loan to be cancelled for each complete academic year of teaching service. The amount cancelled for each year shall not exceed 25 percent of the original principal amount plus any accrued interest.

(d) This section is subject to the availability of funds specifically appropriated for loan cancellations under this section.

(Added 1983, No. 76, § 1; amended 1989, No. 118, § 3; 2003, No. 86 (Adj. Sess.), § 29; 2013, No. 92 (Adj. Sess.), § 188, eff. Feb. 14, 2014.)

Subchapter 6 Part-Time Student Grants.

§§ 2871-2873 Repealed

[Repealed]

2003, No. 86 (Adj. Sess.), § 30.

Subchapter 7 Vermont Higher Education Investment Plan

§ 2875 Findings and intent

(a) The general welfare and well-being of the State are directly related to the educational levels and skills of its citizens.

(b) It is the policy of the State to advance postsecondary education opportunities by using the State’s limited resources in an effective, efficient, and equitable manner.

(c) Given the cost of postsecondary education to students, families, and the taxpayers of the State, it is in the public interest of the State to support supplemental means that enable its citizens to pursue their educational aspirations.

(d) It is a valid and vital public purpose to create a means of encouraging the savings and investing of funds for future postsecondary education, in compliance with the Internal Revenue Code of 1986, as amended.

(e) The implementation of the Vermont Higher Education Investment Plan as provided by this subchapter furthers this public purpose.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2013, No. 92 (Adj. Sess.), § 189, eff. Feb. 14, 2014.)

§ 2876 Definitions

As used in this subchapter, except where the context clearly requires another interpretation:

(1) “Beneficiary” means any individual designated by a participation agreement to benefit from payments for qualified postsecondary education costs.

(2) “Benefits” means the payment of qualified postsecondary education costs on behalf of a beneficiary from a participant’s investment plan account.

(3) “Corporation” means Vermont Student Assistance Corporation.

(4) “Internal Revenue Code” means the federal Internal Revenue Code of 1986, as amended, together with the regulations promulgated pursuant to that Code.

(5) “Qualified postsecondary education costs” means the costs of tuition and fees for attendance at an approved postsecondary education institution, and other qualified higher education expenses as provided under 26 U.S.C. § 529.

(6) “Approved postsecondary education institution” means a postsecondary education institution as defined in section 2822 of this title.

(7) “Vermont Higher Education Investment Plan” or “Investment Plan” means one or more plans created pursuant to this subchapter.

(8) “Participant” means a person who has entered into a participation agreement pursuant to this subchapter intended for the payment of qualified postsecondary education costs on behalf of a beneficiary.

(9) “Participation agreement” means an agreement between a participant and the Corporation, pursuant to and conforming with the requirements of this subchapter.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 51, § 16, eff. Jan. 1, 2019; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2877 Vermont Higher Education Investment Plan created

(a) There is created a program of the State to be known as the Vermont Higher Education Investment Plan and a trust for that purpose to be administered by the Vermont Student Assistance Corporation as an instrumentality of the State. The program may consist of one or more different investment plans, including one or more plans that may be offered to a participant only with the assistance of a qualified financial advisor.

(b) In order to establish and administer the Investment Plan, the Corporation, in addition to its other powers and authority, shall have the power and authority to:

(1) Develop and implement educational programs and related informational materials for participants and their families. Special efforts shall be made to contact families with young children and to reach individuals whose access to higher education opportunities has been limited.

(2) Enter into agreements with any approved postsecondary education institution, the State, or any federal or other agency or entity as required for the operation of an Investment Plan pursuant to this subchapter.

(3) Accept any grants, gifts, legislative appropriations, and other monies from the State; any unit of federal, State, or local government; or any other person, firm, partnership, or corporation for contribution to the account of the Investment Plan, or for the operation or other related purposes of the Corporation.

(4) Invest the funds received from participants in appropriate investment vehicles approved and held in trust for participants by the Corporation as selected by the participants, including education loans made by the Corporation.

(5) Enter into participation agreements with participants.

(6) Develop and use two or more types of participation agreements to provide a range of investment options for participants.

(7) Make payments as directed by the participants pursuant to participation agreements.

(8) Make refunds to participants upon the termination of participation agreements pursuant to the provisions, limitations, and restrictions set forth in this subchapter and the rules, policies, and procedures adopted by the Corporation.

(9) Make provision for the payment of costs of administration and operation of an Investment Plan subject to the limitations on charges on participation agreements established in subdivision 2878(5) of this title.

(10) Adopt rules, policies, and procedures to implement this subchapter and take all necessary action to ensure an Investment Plan is in conformance with the Internal Revenue Code and other applicable law.

(11) Effectuate and carry out all of the powers granted by this subchapter, and have all other powers necessary to carry out and effectuate the purposes, objectives, and provisions of this subchapter pertaining to the Investment Plan Program, including the power to:

(A) carry out studies and projections in order to advise participants regarding present and estimated future postsecondary education costs and levels of financial participation in the Plan required in order to enable participants to achieve their educational funding objectives; and

(B) procure insurance, guarantees, or other protections against any loss in connection with the assets or activities of the investment plan.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2013, No. 92 (Adj. Sess.), § 190, eff. Feb. 14, 2014; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2878 Participation agreements for Investment Plan

The Corporation shall have the authority to enter into Investment Plan participation agreements with participants pursuant to the provisions of this subchapter, including the following terms and agreements:

(1) A participation agreement shall stipulate the terms and conditions of the Investment Plan to which the participant makes contributions.

(2) A participation agreement shall clearly specify the method for calculating the return on the various investment options available and shall reference the relevant expenses and other pertinent information about the account.

(3) The execution of a participation agreement by the Corporation shall not guarantee in any way that postsecondary education costs will be equal to projections and estimates provided by the Corporation or that the beneficiary named in any participation agreement will be admitted to an institution of postsecondary education.

(4) A participation agreement shall clearly and prominently disclose to participants the risks associated with the various investment options available under the applicable Investment Plan.

(5) Participation agreements shall be organized and presented in a way and with language that is easily understandable by the general public. A participation agreement shall clearly and prominently disclose to participants that the Corporation, the State, and any other governmental entity are not liable for, nor guarantee the return of or on the participant’s contributions to an Investment Plan. A participation agreement shall also clearly and prominently disclose to participants the existence of any load charge or similar charge assessed against the accounts of the participants for administration, operation, or services. No fee or similar charge may be imposed with regard to an investment managed by the Corporation. Any fee, load, or similar charge with regard to any investment not managed by the Corporation shall be no greater than the cost determined by the Corporation to be required to administer the investment. The cost of originating and servicing any education loans made or acquired pursuant to participation agreements shall not be considered as load charges or similar charges.

(6) Any investment advisory or management contract used with respect to a participation agreement shall be competitively bid pursuant to guidelines established by the Secretary of Administration.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2878a Participation agreements for Investment Plan; Vermont Matched Savings Program

The Corporation may participate in the Vermont Matched Savings Program established under 33 V.S.A. § 1123, in accordance with the rules of the Agency of Human Services adopted thereunder, in connection with an individual or family who, at the time of contributing funds into an account created pursuant to a Vermont Higher Education Investment Plan, receives public assistance or is otherwise an eligible saver under 33 V.S.A. § 1123.

(Added 1999, No. 147 (Adj. Sess.), § 1a; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 154 (Adj. Sess.), §§ E.323, E.605.4, eff. Oct. 2, 2020.)

§ 2879 Investment and payments

All money paid by a participant in connection with a participation agreement shall be credited to the participant’s account as received, held by the Corporation in trust for the benefit of the participant, and shall be promptly invested by the Corporation as selected by the participant from the investment options available under the participation agreement. Contributions and earnings accumulated in a participant’s Investment Plan account may be used as provided in the participation agreement, including for payments of qualified postsecondary education costs. The trust shall continue in existence as long as it holds any funds belonging to a participant.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2879a Cancellation of participation agreements

(a) Any participant may cancel a participation agreement at will, and any return of funds from the participant’s account shall be subject to terms and conditions established by the Corporation, provided that any penalties levied as a result comply with the provisions of the Internal Revenue Code or Title 32 relating to Investment Plans.

(b) The Corporation may provide by rule that no termination penalty shall apply in certain circumstances.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 51, § 17, eff. Jan. 1, 2019.)

§ 2879b Effect of payments in computation and determination of financial aid need

Amounts available for the payment of postsecondary education costs pursuant to the Investment Plan shall be considered family assets of the beneficiary in determining need and eligibility for student aid as determined by applicable law.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001.)

§ 2879c Tax exemption

(a) The assets of the Vermont Higher Education Investment Plan held by the Corporation and the assets of any similar plan qualified under Section 529 of the Internal Revenue Code and any income from them shall be exempt from all taxation by the State or any of its political subdivisions. Income earned or received from the Fund by any participant or beneficiary shall not be subject to State income tax and shall be eligible for any benefits provided in accordance with the Investment Plan provisions of the Internal Revenue Code. The exemption from taxation under this section shall apply only to assets and income maintained, accrued, or expended pursuant to the requirements of the Vermont Higher Education Investment Plan, the provisions of this subchapter, and the applicable provisions of the Internal Revenue Code. No exemption shall apply to assets and income expended for any other purposes.

(b) Contributions to an account held under a Vermont Higher Education Investment Plan that is provided directly by the Corporation to a participant shall be eligible for a credit against Vermont income tax as provided under 32 V.S.A. § 5825a.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. Jan. 1, 1999; amended 2001, No. 58, § 4, eff. June 16, 2001; 2003, No. 65, § 1; 2019, No. 131 (Adj. Sess.), § 106; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2879d Property rights to assets in the Plan

The assets of the Vermont Higher Education Investment Plan shall at all times be held in trust for the benefit of the participant, shall not be commingled with any other funds of the Corporation or the State, shall be preserved, invested, and expended solely and only for the purposes set forth in this chapter and in accordance with the participation agreements, and no property rights in them shall exist in favor of the Corporation or the State. Amounts held in, or withdrawn from, a participant’s Investment Plan account under a participation agreement shall not be subject to liens, attachment, garnishment, levy, seizure, claim by creditors of the contributors, participants, or any beneficiary, or subject to any involuntary sale, transfer, or assignment by any execution or any other legal or equitable operation of law, including bankruptcy or insolvency laws.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2001, No. 58, § 4, eff. June 16, 2001; 2019, No. 154 (Adj. Sess.), § E.605.4, eff. Oct. 2, 2020.)

§ 2879e Construction and application

This subchapter shall be construed liberally in order to effectuate its legislative intent. The purposes of this subchapter and all provisions of this subchapter with respect to powers granted shall be broadly interpreted to effectuate such intent and purposes and not as to any limitation of powers. This subchapter shall be interpreted and enforced in a manner that shall achieve this public purpose in compliance with the applicable provisions of the Internal Revenue Code, except to the extent the Code is inconsistent with the provisions of 32 V.S.A. § 5825a.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2019, No. 51, § 18, eff. Jan. 1, 2019.)

§ 2879f Annual reports

The Corporation shall review, on an annual basis, the financial status of the Program and the participation rate in the Program. The Corporation shall also review the continued viability of the Program and the administration of the Program by the Corporation.

(Added 1997, No. 79 (Adj. Sess.), § 1, eff. July 1, 1997; amended 2009, No. 33, § 38.)

Subchapter 8 Vermont Universal Children's Higher Education Savings Account Program

§ 2880 Definitions

As used in this subchapter:

(1) “Approved postsecondary education institution” means any institution of postsecondary education that is:

(A) certified by the State Board of Education as provided in section 176 or 176a of this title;

(B) accredited by an accrediting agency approved by the U.S. Secretary of Education pursuant to the Higher Education Act;

(C) a non-U.S. institution approved by the U.S. Secretary of Education as eligible for use of education loans made under Title IV of the Higher Education Act; or

(D) a non-U.S. institution designated by the Corporation as eligible for use of its grant awards.

(2) “Committee” means the Vermont Universal Children’s Higher Education Savings Account Program Fund Advisory Committee.

(3) “Corporation” means Vermont Student Assistance Corporation.

(4) “Eligible child” means a minor who is a Vermont resident at the time the Corporation deposits or allocates funds pursuant to this subchapter for his or her benefit.

(5) “Postsecondary education costs” means the qualified costs of tuition, fees, and other expenses for attendance at an institution of postsecondary education, as defined in the Internal Revenue Code of 1986, as amended, together with the regulations promulgated under that Code.

(6) “Program” means the Vermont Universal Children’s Higher Education Savings Account Program.

(7) “Program beneficiary” means an individual who is or who was at one time an eligible child for whom the Corporation deposited or allocated funds pursuant to this subchapter and who has not yet attained 29 years of age or, for national service program participants, the extended maturity date.

(8) “Program Fund” means the Vermont Universal Children’s Higher Education Savings Account Program Fund.

(9) “Vermont Higher Education Investment Plan” or “Investment Plan” means the plan created pursuant to subchapter 7 of this chapter.

(10) “Vermont resident” means an individual who is domiciled in Vermont as evidenced by the individual’s intent to maintain a principal dwelling place in Vermont indefinitely and to return there if temporarily absent, coupled with an act or acts consistent with that intent. A minor is a Vermont resident if his or her parent or legal guardian is a Vermont resident, unless a parent or legal guardian with sole legal and physical parental rights and responsibilities lives outside the State of Vermont.

(Added 2015, No. 45, § 2; amended 2019, No. 131 (Adj. Sess.), § 108.)

§ 2880a Vermont Universal Children’s Higher Education Savings Account Program established; powers and duties of the Vermont Student Assistance Corporation

(a) It is the policy of the State to expand educational opportunity for all children. Consistent with this policy, the Vermont Student Assistance Corporation shall partner with one or more foundations or other philanthropies to establish and fund the Vermont Universal Children’s Higher Education Savings Account Program to expand educational opportunity and financial capability for Vermont children and their families.

(b) Pursuant to this subchapter, the Corporation shall establish and administer the Program, which shall include the Vermont Universal Children’s Higher Education Savings Account Program Fund and financial education for Program beneficiaries and their families and legal guardians. The Corporation, in addition to its other powers and authority, shall have the power and authority to adopt rules, policies, and procedures, including those pertaining to residency in the State, to implement this subchapter in conformance with federal and State law.

(c) The Vermont Departments of Health and of Taxes and the Vermont Agencies of Education and of Human Services shall enter into agreements with the Corporation to enable the exchange of such information as may be necessary for the efficient administration of the Program.

(d) The Corporation’s obligations under this subchapter are limited to funds deposited in the Program Fund specifically for the purpose of the Program.

(e) The Corporation shall annually on or before January 15 release a written report with a detailed description of the status and operation of the Program and management of accounts.

(Added 2015, No. 45, § 2.)

§ 2880b Vermont Universal Children’s Higher Education Savings Account Program Fund

(a) The Vermont Universal Children’s Higher Education Savings Account Program Fund is established as a fund to be held, directed, and administered by the Corporation. The Corporation shall invest and reinvest, or cause to be invested and reinvested, funds in the Program Fund for the benefit of the Program.

(b) The following sources of funds shall be deposited into the Program Fund:

(1) any grants, gifts, and other funds intended for deposit into the Program Fund from any individual or private or public entity, provided that contributions may be limited in application to specified age cohorts of beneficiaries; and

(2) all interest, dividends, and other pecuniary gains from investment of funds in the Program Fund.

(c) Funds in the Program Fund shall be used solely to carry out the purposes and provisions of this subchapter, including payment by the Corporation of the administrative costs of the Program and the Program Fund and of the costs associated with providing financial education to benefit Program beneficiaries and their parents and legal guardians. Funds in the Program Fund may not be transferred or used by the Corporation or the State for any purposes other than the purposes of the Program.

(Added 2015, No. 45, § 2.)

§ 2880c Initial deposits to the Program Fund

(a) Each year, the Corporation shall deposit $250.00 into the Program Fund for each eligible child born that year, beginning on or after January 1, 2016.

(b) In addition, if the eligible child has a family income of less than 250 percent of the federal poverty level at the time the deposit under subsection (a) of this section is made, the Corporation shall make an additional deposit into the Program Fund for the child that is equal to the deposit made under subsection (a).

(c) Notwithstanding subsections (a) and (b) of this section, if the available funds in a given calendar year are insufficient to provide for the maximum deposits under this section, the Corporation shall prorate the deposits accordingly.

(Added 2015, No. 45, § 2.)

§ 2880d Vermont Higher Education Investment Plan accounts; matching allocations for families with limited income

(a) The Corporation shall invite the parents or legal guardians of each Program beneficiary to open a Vermont Higher Education Investment Plan account on the beneficiary’s behalf.

(b) The beneficiary, his or her parents or legal guardians, other individuals, and private and public entities may make additional deposits into a beneficiary’s Investment Plan account.

(c) Annually, the Corporation shall deposit into the Program Fund a matching allocation of up to $250.00 per eligible child on a dollar-to-dollar basis for contributions made that year to a single Investment Plan account established for the child under this section, provided that at the time of deposit, the eligible child has a family income of less than 250 percent of the federal poverty level.

(d) Notwithstanding subsection (c) of this section, if the available funds in a given calendar year are insufficient to provide for the maximum allocation amounts under this subsection, the Corporation shall prorate the allocations accordingly.

(Added 2015, No. 45, § 2.)

§ 2880e Withdrawal of Program funds

(a) Subject to the provisions of this section, the Investment Plan requirements under subchapter 7 of this chapter, and the rules, policies, and procedures adopted by the Corporation, a Program beneficiary shall be entitled to Program funds deposited or allocated by the Corporation for his or her benefit if:

(1) the beneficiary has attained 18 years of age or has enrolled full-time in an approved postsecondary education institution;

(2) the Corporation has sufficient proof that the beneficiary was an eligible child at the time the deposit or allocation was made;

(3) the funds are used for postsecondary education costs and made payable to an approved postsecondary education institution on behalf of the beneficiary; and

(4) the withdrawal is made prior to the beneficiary’s attaining 29 years of age, provided that for a beneficiary who serves in a national service program, including in the U.S. Armed Forces, AmeriCorps, or the Peace Corps, each month of service shall increase the maturity date by one month.

(b) If a Program beneficiary does not use all of the funds deposited or allocated by the Corporation for his or her use prior to the maturity date, the beneficiary shall no longer be permitted to use these funds and the Corporation shall unallocate the unused funds from the beneficiary within the Program Fund.

(c) This section shall not apply to withdrawal of funds that are contributed to an Investment Plan account opened for the benefit of the account’s beneficiary under subsections 2880d(a) and (b) of this title and that are not Program funds deposited or allocated by the Corporation.

(Added 2015, No. 45, § 2.)

§ 2880f Rights of beneficiaries and their families

(a) A parent or legal guardian shall be allowed to opt out of the Program on behalf of his or her child.

(b) An individual otherwise eligible for any benefit program for elders, persons who are disabled, families, or children shall not be subject to any State resource limit based on funds deposited, allocated, or contributed on behalf of an eligible child or Program beneficiary to the Program Fund or an Investment Plan.

(Added 2015, No. 45, § 2.)

§ 2880g Financial literacy programs

State agencies and offices, including the Agencies of Education and of Human Services and the Office of the State Treasurer, in collaboration with existing statewide community partners and nonprofit partners that specialize in financial education delivery and have developed an available infrastructure to support financial education across multiple sectors, shall develop and support programs to encourage the financial literacy of Program beneficiaries and their families and legal guardians throughout the duration of the Program via mail, mass media, and in-person delivery methods.

(Added 2015, No. 45, § 2.)

§ 2880h Program Fund Advisory Committee

(a) There is created a Vermont Universal Children’s Higher Education Savings Account Program Fund Advisory Committee to identify and solicit public and private funds for the Program and to advise the Corporation on disbursement of funds.

(b) The Committee shall be composed of the following 11 members:

(1) the Governor or designee, ex officio;

(2) the President of the Corporation or designee, ex officio;

(3) two representatives of the Vermont philanthropy community, appointed by the Governor;

(4) two representatives of the Vermont business community, appointed by the Governor;

(5) two members from Vermont advocacy organizations representing individuals and families with limited income, appointed by the Governor; and

(6) three members selected by the Committee.

(c) Non-ex-officio members shall serve four-year terms, appointed and selected in such a manner that no more than three terms shall expire annually.

(Added 2015, No. 45, § 2.)

Chapter 89 Postsecondary Review Entity

§ 2881 Vermont Higher Education Council; designation

The Vermont Higher Education Council is hereby designated as the Vermont state postsecondary review entity for the purpose of reviewing all institutions of higher education that are eligible or which desire to become eligible for funding under 42 U.S.C. Chapter 34, Subchapter I, Part C (work study programs) or 20 U.S.C. Chapter 28, Subchapter IV (student assistance).

(Added 1993, No. 144 (Adj. Sess.), § 1.)

§ 2882 Vermont state postsecondary review entity; powers and duties

(a) The Vermont state postsecondary review entity shall review institutions of higher education in accordance with standards established in 20 U.S.C. § 1099a-3 and with standards established by the Vermont state postsecondary review entity with the agreement of the federal Department of Education.

(b) The Vermont state postsecondary review entity may enter into agreements with the Secretary of the Federal Department of Education pursuant to 20 U.S.C. Chapter 28, Subchapter IV, Part G.

(Added 1993, No. 144 (Adj. Sess.), § 1.)

Chapter 90 Funding of Postsecondary Education

§ 2885 Vermont Higher Education Endowment Trust Fund

(a) A Vermont Higher Education Endowment Trust Fund is established in the Office of the State Treasurer to comprise the following:

(1) appropriations made by the General Assembly;

(2) in any fiscal year in which a General Fund surplus exists and the General Fund Stabilization Reserve is funded to its required statutory level, funds raised by the estate tax levied under 32 V.S.A. chapter 190 that are more than 125 percent of the amount projected by the Emergency Board in the July annual forecast made pursuant to 32 V.S.A. § 305a; and

(3) contributions from any other sources.

(b) The State Treasurer may invest the monies in the Fund.

(c) In August of each fiscal year, beginning in the year 2000, the State Treasurer shall withdraw and divide an amount equal to five percent of the assets equally among the University of Vermont, the Vermont State Colleges, and the Vermont Student Assistance Corporation. In this subsection, “assets” means the average of the Fund’s market values at the end of each quarter for the most recent 12 quarters or all quarters of operation, whichever is less. Therefore, up to five percent of the Fund assets are hereby annually allocated pursuant to this section, provided that the amount allocated shall not exceed an amount that would bring the Fund balance below the initial funding made in fiscal year 2000 plus any additional contributions to the principal. The University of Vermont and the Vermont State Colleges shall use the funds to provide nonloan financial aid to Vermont students attending their institutions; the Vermont Student Assistance Corporation shall use the funds to provide nonloan financial aid to Vermont students attending a Vermont postsecondary institution.

(d)(1) During the first quarter of each fiscal year, the Secretary of Administration or the Secretary’s designee and the Council created in subsection (h) of this section may authorize the State Treasurer to make an amount equal to not more than two percent of the assets available, in equal amounts, to the University of Vermont and the Vermont State Colleges for the purpose of creating or increasing a permanent endowment.

(2) In this subsection, “assets” means the average of the Fund’s market values at the end of each quarter for the most recent 12 quarters or all quarters of operation, whichever is less. Up to two percent of the Fund assets are hereby annually allocated pursuant to this section, provided that the amount allocated shall not exceed an amount that would bring the Fund balance below the initial funding made in fiscal year 2000 plus any additional contributions to the principal. One-half of the amount allocated shall be available to the University of Vermont and one-half shall be available to the Vermont State Colleges. The University of Vermont and the Vermont State Colleges may withdraw funds upon certification by the withdrawing institution to the Commissioner of Finance and Management that it has received private donations that are double the amount it plans to withdraw.

(e) Annually, on or before September 30, the Treasurer shall render a financial report on the receipts, disbursements, and earnings of the Fund for the preceding fiscal year to the Secretary of Administration and the Council created in subsection (h) of this section.

(f) All balances in the Fund at the end of any fiscal year shall be carried forward and used only for the purposes set forth in this section. Earnings of the Fund that are not withdrawn pursuant to this section shall remain in the Fund.

(g) The University of Vermont, the Vermont State Colleges, and the Vermont Student Assistance Corporation shall review expenditures made from the Fund and evaluate the impact of the expenditures on higher education in Vermont and report this information to the House and Senate Committees on Education each year in January.

(h) There is created the Vermont Higher Education Endowment Trust Fund Council to perform the duties set forth in subsections (d) and (e) of this section. The Council shall be attached to the Office of Treasurer for administration purposes and shall be composed of the following members:

(1) the President of the University of Vermont;

(2) the Chancellor of the Vermont State Colleges;

(3) the President of the Vermont Student Assistance Corporation;

(4) the President of the Association of Vermont Independent Colleges;

(5) a representative from the business and industry community, selected by the Vermont Business Roundtable;

(6) a member of the House of Representatives, appointed by the Speaker of the House; and

(7) a member of the Senate, appointed by the Committee on Committees.

(Added 1999, No. 27, § 1; amended 2001, No. 58, § 1; 2003, No. 122 (Adj. Sess.), § 294d; 2005, No. 71, § 273; 2009, No. 133 (Adj. Sess.), § 3; 2011, No. 139 (Adj. Sess.), § 15, eff. May 14, 2012; 2013, No. 92 (Adj. Sess.), § 191, eff. Feb. 14, 2014; 2021, No. 52, § 11, eff. June 3, 2021.)

§ 2886 Repealed

[Repealed]

2009, No. 133 (Adj. Sess.), § 4.

§ 2887 The Next Generation Initiative Fund

(a) A Next Generation Initiative Fund is established in the Office of the State Treasurer to comprise appropriations made by the General Assembly and grants, donations, or contributions from any other sources. The Fund shall be administered pursuant to 32 V.S.A. chapter 7, subchapter 5, except that interest earned on the Fund and any remaining balance shall be retained in the Fund.

(b) Annually, the General Assembly shall appropriate monies in the Next Generation Initiative Fund for programs that encourage Vermonters to live and work in Vermont.

(c) [Repealed.]

(Added 2005, No. 204 (Adj. Sess.), § 2, eff. May 31, 2006; amended 2009, No. 3 (Sp. Sess.), § 11b, eff. June 10, 2009; 2011, No. 162 (Adj. Sess.), § E.400.)

§ 2888 Vermont Strong Scholars Initiative

(a) Creation.

(1) There is created a postsecondary loan forgiveness initiative designed to forgive a portion of Vermont Student Assistance Corporation loans of students employed in occupations identified as important to Vermont’s economy and to build opportunities for students to gain work experience with Vermont employers.

(2) The initiative shall be known as the Vermont Strong Scholars Initiative and is designed to:

(A) encourage students to:

(i) consider occupations that are critical to the Vermont economy;

(ii) enroll and remain enrolled in a Vermont postsecondary institution; and

(iii) live and work in Vermont upon graduation;

(B) reduce student loan debt for postsecondary degrees involving a course of study related to, and resulting in, employment in target occupations; and

(C) support a steady stream of qualified talent for Vermont’s employers.

(b) Vermont Strong Loan Forgiveness Program.

(1) Occupations; projections.

(A) Annually, on or before November 15, the Secretary of Commerce and Community Development and the Commissioner of Labor, in consultation with the Vermont State Colleges, the University of Vermont, the Association of Vermont Independent Colleges, the Vermont Student Assistance Corporation, the Secretary of Human Services, and the Secretary of Education, shall identify occupations, projecting at least four years into the future, that are or will be critical to the Vermont economy.

(B) [Repealed.]

(2) Eligibility. A graduate of a public or private Vermont postsecondary institution shall be eligible for forgiveness of a portion of his or her Vermont Student Assistance Corporation postsecondary education loans under this section if he or she:

(A) was a Vermont resident, as defined in subdivision 2822(7) of this title, at the time he or she was graduated;

(B) enrolled in his or her first year of study at a postsecondary institution on or after July 1, 2015 and completed an associate’s degree within three years, or a bachelor’s degree within six years of his or her enrollment date;

(C) becomes employed on a full-time basis in Vermont within 12 months of graduation in an occupation identified by the Secretary and Commissioner under subdivision (1) of this subsection;

(D) remains employed on a full-time basis in Vermont throughout the period of loan forgiveness in an occupation identified by the Secretary and Commissioner under subdivision (1) of this subsection; and

(E) remains a Vermont resident throughout the period of loan forgiveness.

(3) Loan forgiveness. An eligible individual shall have a portion of his or her Vermont Student Assistance Corporation loan forgiven as follows:

(A) for an individual awarded an associate’s degree, in an amount equal to the comprehensive in-state tuition rate for 15 credits at the Vermont State Colleges during the individual’s final semester of enrollment, to be prorated over the three years following graduation;

(B) for an individual awarded a bachelor’s degree, in an amount equal to the comprehensive in-state tuition rate for 30 credits at the Vermont State Colleges during the individual’s final year of enrollment, to be prorated over the five years following graduation;

(C) loan forgiveness may be awarded on a prorated basis to an otherwise eligible Vermont resident who transfers to a Vermont postsecondary institution and graduates after July 1, 2017, with an associate’s degree or after July 1, 2019, with a bachelor’s degree.

(4) Management.

(A) The Secretary of Commerce and Community Development shall develop all organizational details of the Loan Forgiveness Program consistent with the purposes and requirements of this section.

(B) The Secretary shall enter into a memorandum of understanding with the Vermont Student Assistance Corporation for management of the Loan Forgiveness Program.

(C) The Secretary may adopt rules pursuant to 3 V.S.A. chapter 25 necessary to implement the Program.

(c) [Repealed.]

(d) Funding.

(1) Loan forgiveness; State funding.

(A) There is created a special fund to be known as the Vermont Strong Scholars Fund pursuant to 32 V.S.A. chapter 7, subchapter 5, which shall be used and administered by the Secretary of Commerce and Community Development solely for the purposes of loan forgiveness pursuant to this section.

(B) The Fund shall consist of sums to be identified by the Secretary from any source accepted for the benefit of the Fund and interest earned from the investment of Fund balances.

(C) Any interest earned and any remaining balance at the end of the fiscal year shall be carried forward in the Fund.

(D) The availability and payment of loan forgiveness awards under this chapter is subject to State funding available for the awards.

(2) Loan forgiveness; Vermont Student Assistance Corporation. The Vermont Student Assistance Corporation shall have the authority to grant loan forgiveness pursuant to this section by using the private loan forgiveness capacity associated with bonds issued by the Corporation to raise funds for private loans that are eligible for forgiveness under this section, if available.

(Added 2013, No. 199 (Adj. Sess.), § 47; amended 2015, No. 51, § C.2, eff. June 3, 2015; 2017, No. 154 (Adj. Sess.), § 2, eff. May 21, 2018.)

Chapter 99 General Policy

§ 2901 Success for all students in the general education environment

(a) Each local school district shall develop and maintain, in consultation with parents, a comprehensive system of education that is designed to result, to the extent appropriate, in all students succeeding in the general education environment. A comprehensive system of education includes a full range of services and accommodations that are needed by students in the district. These services could include a separate alternative program if the district finds that some of its students could be better served in an environment outside the classroom, or if the district finds that separate placement is the best way to provide services to a student who is having difficulty learning in a traditional school setting for educational, emotional, or personal reasons and thereby impairing the ability of the classroom teacher to provide high-quality services to that student or to other students. This chapter does not replace or expand entitlements created by federal law, nor is it the intent of this chapter to create a higher standard for maintaining a student in the general classroom than the standard created in the following federal laws: 20 U.S.C. chapter 33, Individuals with Disabilities Education Act; 29 U.S.C. § 794, Section 504 of the Rehabilitation Act of 1973; and 42 U.S.C. chapter 126, Americans with Disabilities Act.

(b) [Repealed.]

(c) No individual entitlement or private right of action is created by this section.

(Added 1989, No. 230 (Adj. Sess.), § 4; amended 1995, No. 157 (Adj. Sess.), § 8; 1999, No. 113 (Adj. Sess.), § 9; 2009, No. 44, § 40, eff. May 21, 2009; 2017, No. 173 (Adj. Sess.), § 3, eff. May 25, 2018.)

§ 2902 Tiered system of supports and educational support team

(a) Within each school district’s comprehensive system of educational services, each public school shall develop and maintain a tiered system of academic and behavioral supports for the purpose of providing all students with the opportunity to succeed or to be challenged in the general education environment. For each school it maintains, a school district board shall assign responsibility for developing and maintaining the tiered system of supports either to the superintendent pursuant to a contract entered into under section 267 of this title or to the school principal. The school shall provide all students a full and fair opportunity to access the system of supports and achieve educational success. The tiered system of supports shall, at a minimum, include an educational support team, instructional and behavioral interventions, and accommodations that are available as needed for any student who requires support beyond what can be provided in the general education classroom and may include intensive, individualized interventions for any student requiring a higher level of support.

(b) The tiered system of supports shall:

(1) be aligned as appropriate with the general education curriculum;

(2) be designed to enhance the ability of the general education system to meet the needs of all students;

(3) be designed to provide necessary supports promptly, regardless of an individual student’s eligibility for categorical programs;

(4) seek to identify and respond to students in need of support for emotional or behavioral challenges and to students in need of specialized, individualized behavior supports;

(5) provide all students with a continuum of evidence-based positive behavioral practices that promote social and emotional learning, including trauma-sensitive programming, that are both school-wide and focused on specific students or groups of students;

(6) promote collaboration with families, community supports, and the system of health and human services; and

(7) provide professional development, as needed, to support all staff in full implementation of the multi-tiered system of support.

(c) The educational support team for each public school in the district shall be composed of staff from a variety of teaching and support positions and shall:

(1) Determine which enrolled students require additional assistance to be successful in school or to complete secondary school based on indicators set forth in guidelines developed by the Secretary, such as academic progress, attendance, behavior, or poverty. The educational support team shall pay particular attention to students during times of academic or personal transition.

(2) Identify the classroom accommodations, remedial services, and other supports to be provided to the identified student.

(3) Assist teachers to plan for and provide services and accommodations to students in need of classroom supports or enrichment activities.

(4) Develop an individualized strategy, in collaboration with the student’s parents or legal guardian whenever possible, to assist the identified student to succeed in school and to complete his or her secondary education.

(5) Maintain a written record of its actions.

(6) [Repealed.]

(d) No individual entitlement or private right of action is created by this section.

(e) The Secretary shall establish guidelines for teachers and administrators in following federal laws relating to provision of services for children with disabilities and the implementation of this section. The Secretary shall develop and provide to supervisory unions information to share with parents of children suspected of having a disability that describes the differences between the tiered system of academic and behavioral supports required under this section, Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and the Individuals with Disabilities Education Act, 20 U.S.C. chapter 33, including how and when school staff and parents of children having a suspected disability may request interventions and services under those entitlements.

(f) It is the intent of the General Assembly that a gifted and talented student shall be able to take advantage of services that an educational support team can provide. It is not the intent of the General Assembly that funding under chapter 101 of this title shall be available for a gifted and talented student unless the student has been otherwise determined to be a student for whom funding under that chapter is available.

(g) The tiered system of academic and behavioral supports required under this section shall not be used by a school district to deny a timely initial comprehensive special education evaluation for children suspected of having a disability. The Agency of Education shall adopt policies and procedures to ensure that a school district’s evaluation of a child suspected of having a disability is not denied because of implementation of the tiered system of academic and behavioral supports. The policies and procedures shall include:

(1) the definition of what level of progress is sufficient for a child to stop receiving instructional services and supports through the tiered system of academic and behavioral supports;

(2) guidance on how long children are to be served in each tier; and

(3) guidance on how a child’s progress is to be measured.

(Added 1989, No. 230 (Adj. Sess.), § 4; amended 1995, No. 157 (Adj. Sess.), § 9; 1997, No. 87 (Adj. Sess.), § 1; 1999, No. 113 (Adj. Sess.), § 10; 1999, No. 117 (Adj. Sess.), § 2; 2009, No. 44, § 40, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 192, eff. Feb. 14, 2014; 2015, No. 48, § 5; 2017, No. 173 (Adj. Sess.), § 4, eff. May 25, 2018.)

§ 2903 Foundation for literacy

(a) Statement of policy. The ability to read is critical to success in learning. Children who fail to read by the end of the first grade will likely fall further behind in school. The personal and economic costs of reading failure are enormous both while the student remains in school and long afterward. All students need to receive systematic and explicit evidence-based reading instruction in the early grades from a teacher who is skilled in teaching the foundational components of reading, including phonemic awareness, phonics, fluency, vocabulary, and comprehension. Students who require intensive supplemental instruction tailored to the unique difficulties encountered shall be provided those additional supports by an appropriately trained education professional.

(b) Foundation for literacy.

(1) The Agency of Education, in collaboration with the State Board of Education, the Agency of Human Services, higher education, literacy organizations, and others, shall develop a plan for establishing a comprehensive system of services for early education in public schools that offer instruction in grades kindergarten through grade three to ensure that all students learn to read by the end of the third grade. The plan shall be updated at least once every five years following its initial submission in 1998.

(2) Approved independent schools that are eligible to receive public tuition shall develop a grade-level appropriate school literacy plan that is informed by student needs and assessment data. The plan may include identification of a literacy vision, goals, and priorities and shall address the following topics:

(A) measures and indicators;

(B) screening, assessment, instruction and intervention, and progress monitoring, consistent with section 2907 of this title; and

(C) professional learning activities consistent with section 1710 of this title.

(c) Reading instruction. A public school or approved independent school that is eligible to receive public tuition that offers instruction in grades kindergarten, one, two, or three shall provide systematic and explicit evidence-based reading instruction to all students. In addition, for students in grades kindergarten through 12, public schools and approved independent schools that are eligible to receive public tuition shall provide supplemental reading instruction to any enrolled student whose reading proficiency falls significantly below proficiency standards for the student’s grade level or whose reading proficiency prevents progress in school. Schools shall provide support and information to parents and legal guardians.

(Added 1997, No. 60, § 9, eff. June 26, 1997; amended 2009, No. 44, § 40, eff. May 21, 2009; 2023, No. 139 (Adj. Sess.), § 5, eff. May 30, 2024; 2025, No. 72, § 10, eff. June 27, 2025.)

§ 2903a Advisory Council on Literacy [Repealed effective June 30, 2027]

(a) Creation. There is created the Advisory Council on Literacy. The Council shall advise the Agency of Education, the State Board of Education, and the General Assembly on how to improve proficiency outcomes in literacy for students in prekindergarten through grade 12 and how to sustain those outcomes.

(b) Membership. The Council shall be composed of the following 16 members:

(1) 10 members who shall serve as ex officio members:

(A) the Secretary of Education or designee;

(B) a member of the Standards Board for Professional Educators who is knowledgeable in licensing requirements for teaching literacy, appointed by the Standards Board;

(C) the Executive Director of the Vermont Superintendents Association or designee;

(D) the Executive Director of the Vermont School Boards Association or designee;

(E) the Executive Director of the Vermont Council of Special Education Administrators or designee;

(F) the Executive Director of the Vermont Principals’ Association or designee;

(G) the Executive Director of the Vermont Independent Schools Association or designee;

(H) the Executive Director of the Vermont-National Education Association or designee;

(I) the State Librarian or designee; and

(J) the Executive Director of the Vermont Curriculum Leaders Association or designee; and

(2) seven members who shall serve two-year terms:

(A) [Repealed.]

(B) three teachers, appointed by the Vermont-National Education Association, who teach literacy, one of whom shall be a special education literacy teacher and two of whom shall teach literacy to students in prekindergarten through grade three;

(C) three community members who have struggled with literacy proficiency or supported others who have struggled with literacy proficiency, one of whom shall be a high school student, appointed by the Agency of Education in consultation with the Vermont Family Network; and

(D) one member appointed by the Agency of Education who has expertise in working with students with dyslexia; and

(3) two faculty members of approved educator preparation programs located in Vermont, one of whom shall be employed by a private college or university, appointed by the Agency of Education in consultation with the Association of Vermont Independent Colleges, and one of whom shall be employed by a public college or university, appointed by the Agency of Education in consultation with the University of Vermont and State Agricultural College and the Vermont State Colleges Corporation.

(c) Members with two-year terms.

(1) A member with a term limit shall serve a term of two years and until a successor is appointed. A term shall begin on January 1 of the year of appointment and run through December 31 of the last year of the term. Terms of these members shall be staggered so that not all terms expire at the same time.

(2) A vacancy created before the expiration of a term shall be filled in the same manner as the original appointment for the unexpired portion of the term.

(3) A member with a term limit shall not serve more than two consecutive terms. A member appointed to fill a vacancy created before the expiration of a term shall not be deemed to have served a term for the purpose of this subdivision.

(d) Powers and duties. The Council shall advise the Secretary of Education on how to improve proficiency outcomes in literacy for students in prekindergarten through grade 12 and how to sustain those outcomes and shall:

(1) advise the Secretary on how to:

(A) update section 2903 of this title;

(B) implement the statewide literacy plan required by section 2903 of this title and whether, based on its implementation, changes should be made to the plan; and

(C) maintain the statewide literacy plan;

(2) advise the Secretary on what services the Agency should provide to school districts to support implementation of the plan and on staffing levels and resources needed at the Agency to support the statewide effort to improve literacy;

(3) develop a plan for collecting literacy-related data that informs:

(A) literacy instructional practices;

(B) teacher professional development in the field of literacy;

(C) what proficiencies and other skills should be measured through literacy assessments and how those literacy assessments are incorporated into local assessment plans; and

(D) how to identify school progress in achieving literacy outcomes, including closing literacy gaps for students from historically underserved populations;

(4) recommend evidence-based best practices for Tier 1, Tier 2, and Tier 3 literacy instruction within the multitiered system of supports required under section 2902 of this title to best improve and sustain literacy proficiency; and

(5) review literacy assessments and outcomes and provide ongoing advice as to how to continuously improve those outcomes and sustain that improvement.

(e) Report. Notwithstanding 2 V.S.A. § 20(d), annually on or before December 15, the Council shall submit a written report to the House and Senate Committees on Education with its findings, any recommendations for legislative action, and progress toward outcomes identified in this section. The report shall contain an executive summary, which shall not exceed two pages.

(f) Meetings.

(1) The Secretary of Education shall call the first meeting of the Council to occur on or before August 1, 2021.

(2) The Council shall select a chair from among its members.

(3) A majority of the membership shall constitute a quorum.

(4) The Council shall meet not more than four times per year.

(g) Assistance. The Council shall have the administrative, technical, and legal assistance of the Agency of Education.

(h) Compensation and reimbursement. Compensation and reimbursement. Members of the Council shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010 for not more than four meetings of the Council per year.

(Added 2021, No. 28, § 5, eff. May 13, 2021; repealed on June 30, 2024 by 2021, No. 28, § 7; amended 2023, No. 139 (Adj. Sess.), § 9, eff. May 30, 2024.)

§ 2903a Repealed

[Repealed]

(Added 2021, No. 28, § 5, eff. May 13, 2021; repealed on June 30, 2024 by 2021, No. 28, § 7; amended 2023, No. 139 (Adj. Sess.), § 9, eff. May 30, 2024.)

§ 2904 Reports

Annually, each superintendent shall report to the Secretary in a form prescribed by the Secretary, on the status of the educational support systems in each school in the supervisory union. The report shall describe the services and supports that are a part of the education support system, how they are funded, and how building the capacity of the educational support system has been addressed in the school action plans, and shall be in addition to the report required of the educational support team in subdivision 2902(c)(6) of this chapter. The superintendent’s report shall include a description and justification of how funds received due to Medicaid reimbursement under section 2959a of this title were used.

(Added 1999, No. 117 (Adj. Sess.), § 3; amended 2005, No. 54, § 14; 2009, No. 44, § 40, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 193, eff. Feb. 14, 2014.)

§ 2905 Repealed

[Repealed]

2021, No. 52, § 10, effective June 3, 2021.

§ 2906 Vermont Expanded Learning Opportunities Special Fund established

(a) As used in this section, “Expanded Learning Opportunity” means a structured program designed to serve prekindergarten through secondary school-age children and youth outside the school day and year on a regular basis, including before and after school and during the summer, by providing opportunities for personal, emotional, and academic growth for children and youth.

(b) There is established a Vermont Expanded Learning Opportunities Special Fund comprising grants, donations, and contributions from any private or public source. Monies in the Fund shall be available to the Agency for the purpose of increasing access to expanded learning opportunities throughout Vermont. The Commissioner of Finance and Management may draw warrants for disbursements from this Fund in anticipation of receipts. The Fund shall be administered pursuant to 32 V.S.A. chapter 7, subchapter 5, except that interest earned and any remaining balance at the end of the fiscal year shall be retained and carried forward in the Fund.

(Added 2015, No. 48, § 9, eff. June 3, 2015.)

§ 2907 Kindergarten through grade-three reading assessment and intervention

(a) The Agency of Education shall review and publish guidance on universal reading screeners based on established criteria that are based on technical adequacy, attention to linguistic diversity, administrative usability, and valid measures of the developmental skills in early literacy, including phonemic awareness, phonics, fluency, vocabulary, and comprehension. The Agency shall include in its guidance instances in which schools can leverage assessments that meet overlapping requirements and guidelines to maximize the use of assessments that provide the necessary data to understand student needs while minimizing the number of assessments used and the disruption of instructional time.

(b) Each public and approved independent school that is eligible to receive public tuition shall screen all students in kindergarten through grade three, at least annually, using age and grade-level appropriate universal reading screeners. The universal screeners shall be given in accordance with best practices and the technical specifications of the specific screener used.

(c)(1) If such screenings determine that a student is significantly below relevant benchmarks as determined by the screener’s guidelines for age-level or grade-level typical development in specific literacy skills, the school shall determine which actions within the general education program will meet the student’s needs, including differentiated or supplementary evidence-based reading instruction and ongoing monitoring of progress. Within 30 calendar days following a screening result that is significantly below the relevant benchmarks, the school shall inform the student’s parent or guardian of the screening results and the school’s response.

(2) Additional diagnostic assessment and evidence-based curriculum and instruction for students demonstrating a substantial deficit in reading or dyslexia characteristics shall be determined by data-informed decision making within existing processes in accordance with required federal and State law.

(d) Evidence-based reading instructional practices, programs, or interventions provided pursuant to subsection (c) of this section shall be effective, explicit, systematic, and consistent with federal and State guidance and shall address the foundational concepts of literacy proficiency, including phonemic awareness, phonics, fluency, vocabulary, and comprehension.

(e)(1) Each supervisory union and approved independent school that is eligible to receive public tuition shall annually report to the Agency, in a format prescribed by the Agency, the following information and prior year performance, by school:

(A) the number and percentage of students in kindergarten through grade three performing below proficiency on local and statewide reading assessments, as applicable; and

(B) the universal reading screeners utilized.

(2) The Agency shall provide guidance to supervisory unions and approved independent schools that are eligible to receive public tuition on whether, and if so, how, the data provided pursuant to subdivision (1) of this subsection may be disaggregated based on poverty, the provision of special education services, or any other category the Agency deems relevant to understanding the status of the State’s progress to improve literacy learning.

(f) On or before January 15 of each year, the Agency shall issue a written report to the Governor and the Senate and House Committees on Education on the status of State progress to improve literacy learning. The report shall include the information required pursuant to subdivision (e)(1) of this section.

(Added 2023, No. 139 (Adj. Sess.), § 2, eff. May 30, 2024.)

Chapter 101 Special Education

Subchapter 1 General Provisions

§ 2941 Policy and purpose

It is the policy of the State to ensure equal educational opportunities for all children in Vermont. This means that children with disabilities are entitled to receive a free appropriate public education. The purpose of this chapter is to enable the Agency to ensure the provision of special education services and supports in accordance with individualized education programs necessary to meet the needs of children with disabilities.

(Amended 1965, No. 152, § 1; 1987, No. 235 (Adj. Sess.), § 2; 1995, No. 157 (Adj. Sess.), § 22; 1997, No. 60, § 29a, eff. July 1, 1998; 2013, No. 92 (Adj. Sess.), § 195, eff. Feb. 14, 2014; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.)

§ 2942 Definitions

As used in this chapter

(1) “Child with a disability” means any child in Vermont eligible under State rules to receive special education.

(2) “Special education” means, to the extent required by federal law, specially designed instruction, at no cost to parents or guardian, to meet the unique educational needs of a child with a disability, including classroom instruction, instruction in physical education, home instruction, and instruction in hospitals and institutions. The term includes “related services” as defined in federal law.

(3) “Essential early education” means the education of children with disabilities prior to legal school age for the early acquisition of fundamental skills.

(4) “Federal law” means the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400-1485, and its implementing regulations, as amended from time to time.

(5) “Residential placement” means the placement of an eligible child, as part of an individualized education program, in a 24-hour residential facility within or outside Vermont that provides educational services consistent with the child’s program.

(6) “Individualized education program” means a program established for an eligible child pursuant to 20 U.S.C. § 1401(19) and the implementing federal regulations and State rules.

(7) “Unilateral placement” means a placement of a child eligible for special education by a person or persons having legal custody of the child in an educational placement other than one recommended by the child’s duly constituted individualized education program team as defined in 20 U.S.C. § 1401(19).

(8) A “student who requires additional support” means a student:

(A) who is on an individualized education program;

(B) who is on a section 504 plan under the Rehabilitation Act of 1973, 29 U.S.C. § 794;

(C) who is not on an individualized education program or section 504 plan but whose ability to learn is negatively impacted by a disability or by social, emotional, or behavioral needs, or whose ability to learn is negatively impacted because the student is otherwise at risk;

(D) for whom English is not the primary language; or

(E) who reads below grade level.

(Amended 1965, No. 152, § 2; 1971, No. 207 (Adj. Sess.), § 1; 1987, No. 235 (Adj. Sess.), § 3; 1989, No. 107, § 1; 1995, No. 157 (Adj. Sess.), § 22; 1999, No. 117 (Adj. Sess.), § 4; 2013, No. 92 (Adj. Sess.), § 196, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 78; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022; 2019, No. 131 (Adj. Sess.), § 109.)

§ 2943 Secretary of Education for children with disabilities; powers

The Secretary of Education, by virtue of the office, shall be Secretary of Education for children with disabilities and shall superintend all matters relating to the essential early education and special education of children with disabilities. In addition, the Secretary, in coordination with the Department of Mental Health, the Department of Disabilities, Aging, and Independent Living, and the Department for Children and Families, shall ensure that appropriate educational services are provided to children and adolescents with a severe emotional disturbance in accordance with the provisions of 33 V.S.A. chapter 43 and may accept gifts, grants, or other donations to carry out the purpose of this chapter.

(Amended 1987, No. 235 (Adj. Sess.), § 4; 1987, No. 264 (Adj. Sess.), § 5; 1989, No. 187 (Adj. Sess.), § 5; 1995, No. 157 (Adj. Sess.), § 22; 2011, No. 58, § 13, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 197, eff. Feb. 14, 2014.)

§ 2944 Special education

(a)-(c) [Repealed.]

(d) The Secretary with the advice of the State Board may make grants for programs and may make grants, subject to conditions the Secretary shall establish, to persons whom he or she finds qualified for either part-time or full-time study in programs designed to qualify them as special education personnel.

(e) Within the limits of the funds made available for the purposes of this chapter, the Secretary may provide for the extension of special education to a person with a disability, having attained the age of 21, in order to complete a program of special education in which the person has participated. Reimbursement and State aid provisions of this chapter shall apply to individuals provided education under this subsection.

(f) The State Board of Education shall, by rule, require that whenever an individual education program requires related services, the program shall include a statement that the team has made the determination that the services are necessary consistent with the requirements of 34 C.F.R. § 300.16, as amended from time to time.

(g) Any public or approved independent secondary school receiving State education funds shall allow an enrolled student to choose to participate in the graduation ceremony and senior year activities of the student’s peers if:

(1) the student is receiving specialized instruction or services, from or through the school, described in an individualized education program (“IEP”) or a Section 504 plan;

(2) under the IEP or Section 504 plan, the student will need to remain enrolled in the school after that graduation ceremony in order to complete his or her secondary education, including special education and transition services; and

(3) the student, as a result of his or her disability or impairment, needs to remain enrolled in the school after that graduation ceremony in order to complete his or her secondary education.

(h) A school shall not be required to permit a student to participate in a graduation ceremony or senior year activities pursuant to subsection (g) of this section if the student has not met graduation requirements for reasons that are wholly unrelated to the student’s disability.

(i) A student who participates in a graduation ceremony pursuant to subsection (g) of this section shall not receive a diploma as part of that ceremony, but shall receive a certificate of recognition in a form determined by the school. If on an IEP, the student shall receive a regular high school diploma upon satisfactory completion of all necessary graduation requirements and at a time determined by the IEP team. If on a Section 504 plan, the student shall receive a regular high school diploma upon satisfactory completion of all necessary graduation requirements. Unless a school determines otherwise, a student may participate in no more than one graduation ceremony.

(j) A student’s participation in a graduation ceremony pursuant to subsection (g) of this section shall not affect or limit the student’s eligibility for special education services, related services, transition services, or Section 504 services following the ceremony.

(Amended 1967, No. 73, § 1; 1969, No. 172 (Adj. Sess.), § 1; 1971, No. 207 (Adj. Sess.), § 2; 1977, No. 14; 1977, No. 194 (Adj. Sess.), §§ 2, 3; 1987, No. 235 (Adj. Sess.), § 11(1)-(3); 1995, No. 157 (Adj. Sess.), § 22; 1997, No. 60, § 10, eff. June 26, 1997; 2009, No. 153 (Adj. Sess.), § 22, eff. June 3, 2010; 2013, No. 92 (Adj. Sess.), § 198, eff. Feb. 14, 2014.)

§ 2945 State Advisory Panel on Special Education

(a) The State Advisory Panel on Special Education (Panel) is created to provide guidance with respect to special education and related services for children with disabilities in the State. Members of the Panel shall be appointed by the Governor, with the advice of the Secretary of Education. The Panel shall perform its duties, and members of the Panel shall be appointed, in accordance with federal law. In addition to members appointed to the Panel to satisfy the requirements under federal law, the members of the Panel shall include a representative of each body designated by the State under federal law as the Parent Training and Information Center and the Protection and Advocacy System. The total number of members on the Panel shall not exceed 37 members.

(b) The Panel shall elect an executive committee from among its members. The executive committee shall be composed of seven members of the Panel, one of whom shall be the chair of the Panel. A majority of the members of the executive committee shall be individuals with disabilities or parents of children with disabilities (ages birth through 26 years of age). The executive committee shall call meetings of the Panel and shall direct the work of the Panel.

(c) The Panel shall advise both the Agency of Education and the State Board of Education on those matters upon which the Panel is required, under federal law, to advise the State Education Agency.

(d) Members of the Panel shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010.

(Amended 1961, No. 36, eff. March 24, 1961; 1967, No. 73, § 2; 1971, No. 207 (Adj. Sess.), § 3; 1977, No. 167 (Adj. Sess.), § 1, eff. March 31, 1978; 1995, No. 157 (Adj. Sess.), §§ 10, 22; 2003, No. 36, § 16; 2011, No. 58, § 4, eff. May 31, 2011; 2011, No. 129 (Adj. Sess.), § 14, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 199, eff. Feb. 14, 2014; 2017, No. 49, § 33, eff. May 23, 2017; 2019, No. 97 (Adj. Sess.), § 1, eff. April 28, 2020.)

§ 2946 Repealed

[Repealed]

1987, No. 235 (Adj. Sess.), § 11(4).

§ 2947 Repealed

[Repealed]

1987, No. 235 (Adj. Sess.), § 11(5).

§ 2948 State aid

(a) For the payment of general State aid, children with disabilities shall be counted in the same manner as children who do not have disabilities.

(b) [Repealed.]

(c) Each supervisory union shall receive an essential early education grant each school year. Grants shall be distributed according to the estimated number of children from three through five years of age. The State Board by rule shall encourage coordination of services and may set other terms of the grant. Each supervisory union shall be responsible for the remainder of the costs of providing necessary services under section 2956 of this title. Annually, for each following fiscal year, the essential early education grant shall be increased by the most recent cumulative price index, as of November 15, for State and local government purchases of goods and services from fiscal year 2002 through that following fiscal year, as provided through the State’s participation in the New England Economic Project.

(d), (e) [Repealed.]

(f) If a student is being provided education or special education or both in a school operated by the Department of Corrections, the Department of Corrections shall serve the student as if the Department were the school district of residence of the student.

(g) Notwithstanding any law to the contrary, a child with a disability who is residing in a State school, hospital, or community residential facility or in a State-approved private residential facility shall be provided special education in accordance with this chapter by the supervisory union in which the facility is located; provided, however, that this special education may be directly provided by the facility in which the child resides when the child’s individualized education program and treatment plans indicate that the facility is the most appropriate educational placement for the child. Programs of special education provided by a facility described in this subsection shall be subject to the approval of the Secretary.

(h)-(j) [Repealed.]

(k) For the costs of students in the custody of the Department of Corrections, the Secretary of Education shall pay for the costs of special education in accordance with the provisions of 28 V.S.A. § 120.

(l) [Repealed.]

(m) All other State aid to supervisory unions shall be set forth in subchapter 2 of this chapter.

(n) If a student is being provided education or special education, or both, in a school operated by the Department for Children and Families, the funding and provision of services shall be the responsibility of the Department for Children and Families and special education procedural responsibility shall be the responsibility of the supervisory union for the school district of residence of the student’s parent, parents, or guardian.

(Amended 1961, No. 83; 1969, No. 172 (Adj. Sess.), § 2; 1971, No. 207 (Adj. Sess.), § 4; 1977, No. 194 (Adj. Sess.), §§ 4, 5; 1981, No. 170 (Adj. Sess.), § 6a, eff. April 19, 1982; 1987, No. 235 (Adj. Sess.), §§ 5, 11(6); 1989, No. 107, §§ 2, 3, 12; 1989, No. 230 (Adj. Sess.), § 13, eff. July 1, 1991; 1995, No. 157 (Adj. Sess.), § 6, eff. July 1, 1997; 1995, No. 157 (Adj. Sess.), §§ 22, 30(a)(5), (c); 2001, No. 63, § 170c; 2005, No. 182 (Adj. Sess.), § 7; 2011, No. 58, §§ 14, 15, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 200, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2949 Reciprocal agreements with other states

The State Board of Education, with the approval of the Attorney General, is authorized to enter into reciprocal agreements with the boards of education in other states to share in the expense of securing the services of specialists or persons skilled in the education of children with disabilities.

(Amended 1995, No. 157 (Adj. Sess.), § 22; 2015, No. 148 (Adj. Sess.), § 1.)

§ 2950 State-placed students

(a) Supervisory union reimbursement. The supervisory union in which there is a school district responsible for educating a State-placed student under section 1075 of this title may claim and the Secretary shall reimburse 100 percent of all special education costs for the student, including costs for mainstream services. As a condition of receiving this reimbursement, the supervisory union shall provide documentation in support of its claim, sufficient to enable the Secretary to determine whether to recommend appropriate cost-saving alternatives. The Secretary may approve any costs incurred in educating a State-placed student who is not eligible for special education that are incurred due to the special needs of the student, and, if approved, the Secretary shall pay those costs. When a State agency places and registers a student in a new district, the district and the supervisory union of which it is a member may request and the Agency of Education or the agency that placed the student, or both, shall provide prompt consultative and technical assistance to the receiving district and the supervisory union.

(b) Residential payments.

(1) For a student in the care and custody of the Commissioner for Children and Families who is placed in a 24-hour residential facility within or outside Vermont, the Secretary of Education shall pay the education costs, and the Commissioner for Children and Families shall arrange for the payment of the remainder of the costs. However, if the State interagency team, as defined in 33 V.S.A. § 4302, finds such placement inappropriate for the student’s education needs, then the Secretary of Education shall pay none of the education costs of the placement and the Commissioner for Children and Families shall arrange for the payment of the full cost of the placement.

(2) For a student who is placed in a 24-hour residential facility within or outside Vermont by a Vermont licensed child placement agency, a designated community mental health agency, any other agency as defined by the Secretary of Education, or a Vermont State agency or department other than the Department of Corrections or the Department for Children and Families, the Secretary of Education shall pay the education costs and the agency or department in whose care the student is placed shall arrange for the payment of the remainder of the costs. However, if the State interagency team, as defined in 33 V.S.A. § 4302, finds such placement inappropriate for the student’s education needs, then the Secretary shall pay none of the education costs of the placement and the agency or department in whose care the student is placed shall arrange for payment of the full cost of the placement. This subdivision does not apply to a student for whom a residential placement is:

(A) specified in the student’s individualized education program; and

(B) funded in collaboration with another agency.

(c) Out-of-state placement. For a State-placed student who is placed outside Vermont and who is attending a public school outside Vermont, the Secretary of Education shall pay the education costs for the student.

(Added 1995, No. 157 (Adj. Sess.), § 11; amended 1995, No. 157 (Adj. Sess.), § 28, eff. July 1, 1997; 1997, No. 60, § 11, eff. June 26, 1997; 2001, No. 8, § 11; 2007, No. 82, § 23, eff. July 1, 2008; 2011, No. 58, § 16, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 201, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2951 Repealed

[Repealed]

1987, No. 235 (Adj. Sess.), § 11(7).

§ 2952 Repealed

[Repealed]

2003, No. 122 (Adj. Sess.), § 294w(4).

§ 2953 Repealed

[Repealed]

1987, No. 235 (Adj. Sess.), § 11(8).

§ 2954 Repealed

[Repealed]

1987, No. 235 (Adj. Sess.), § 11(9).

§ 2955 Confidential information

Nothing in 12 V.S.A. § 1612(a) shall apply to this chapter.

(Added 1981, No. 221 (Adj. Sess.), § 2.)

§ 2956 Essential early education

After June 30, 1991, all eligible children with disabilities three through five years of age shall have access to appropriate essential early education services.

(Added 1987, No. 68, § 4; amended 1989, No. 230 (Adj. Sess.), § 11; 1995, No. 157 (Adj. Sess.), § 22.)

§ 2957 Special education administrative and judicial appeals; limitations

(a) An action against a local, intermediate, or State education agency seeking enforcement of special education rights under State or federal law shall be commenced by an administrative due process hearing within two years of the alleged violation or within two years of the date the alleged violation is or reasonably should have been discovered, and not after.

(b) Subsection (a) of this section notwithstanding, an action against a local, intermediate, or State education agency for reimbursement of the costs of a unilateral special education placement shall be commenced by an administrative due process hearing within 90 days of the unilateral placement, and not after.

(c) Where the parent, legal guardian, or surrogate parent has not been given proper notice of special education rights under State and federal law, including notice of the limitations in this section, such limitations shall run from the time notice of those rights is properly given.

(d) An appeal from a final administrative decision in a special education due process hearing to a court of competent jurisdiction pursuant to 20 U.S.C. § 1415(i)(2) shall be commenced within 90 days from the notice of the final decision, and not after.

(e) Except as provided in 20 U.S.C. § 1412(a)(10)(C) or unless a court or hearing officer determines otherwise, where a unilateral placement has been made without offering the supervisory union for the school district of residence a reasonable opportunity to evaluate the child and to develop an individualized education program, reimbursement may not be sought for any costs incurred before the supervisory union is offered such an opportunity.

(Added 1989, No. 107, § 4; amended 2001, No. 8, § 12; 2003, No. 36, § 17; 2005, No. 54, § 15; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2958 Residential Placement Review Team; residential placements

(a) A supervisory union shall notify the parents and the Secretary when it believes residential placement is a possible option for inclusion in a child’s individualized education program.

(b) The Secretary may establish from within the Agency a Residential Placement Review Team. At the discretion of the Secretary, other persons not employed by the Agency may be appointed to serve on the Team. The Team shall make every effort to assist supervisory unions and parents in understanding the range of educational options available as early as possible in the planning process for the child. The Team shall:

(1) advise supervisory unions on alternatives to residential placement;

(2) review each individualized education program calling for residential placement of a student to consider whether the student can be educated in a less restrictive environment;

(3) assist supervisory unions in locating cost-effective and appropriate residential facilities where necessary;

(4) request a new individualized education program where it believes that appropriate alternatives to residential placement are available; and

(5) offer mediation as a means of resolving disputes relating to the need for residential placement or the particular residential facility recommended for a child with a disability.

(c) The State Board shall by rule establish policies and procedures for the operations of the Residential Placement Review Team. The rules shall be consistent with federal law and, at minimum, shall include the following:

(1) provision for the Secretary to initiate a due process proceeding to challenge the need for residential placement where the team believes that a less restrictive educational placement is both available and appropriate for the child with a disability, and to reimburse the supervisory union and the parents or guardian of the child for reasonable costs and attorney’s fees in the event the Secretary does not prevail;

(2) provision for technical assistance, a plan for correction, or withholding of funds under this section where a supervisory union places a child in a residential facility more expensive than an available and appropriate alternative residential facility; however, such withholding of funds shall not exceed the difference between the cost of the two facilities and the rule shall provide an opportunity for appeal of the withholding; and

(3) procedures and timelines to ensure that residential placement of a child with disabilities is not delayed or disrupted so as to adversely affect the child.

(d) Whenever a residential placement is determined to be necessary and appropriate for a child with a disability, the Residential Placement Review Team shall include in the child’s individualized education program goals and objectives designed to reintegrate the child into a local school district.

(e) Costs for residential placement shall be reimbursed under subchapter 2 of this chapter only if the residential facility is approved by the State Board for the purposes of providing special education and related services to children with disabilities.

(Added 1989, No. 107, § 5; amended 1995, No. 157 (Adj. Sess.), § 22; 2013, No. 92 (Adj. Sess.), § 202, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 7, eff. May 25, 2018.)

§ 2959 Rulemaking; mediation

(a) The State Board shall adopt rules governing the determination of a child’s eligibility for special education, accounting and financial reporting standards, program requirements, procedural requirements, and the identification of the supervisory union or agency responsible for each child with a disability.

(b) Subject to rules established by the State Board, the Secretary shall offer mediation to parents, children with disabilities, and districts, supervisory unions, and agencies involved in special education disputes.

(Added 1987, No. 235 (Adj. Sess.), § 6; amended 1995, No. 157 (Adj. Sess.), § 22; 2013, No. 92 (Adj. Sess.), § 203, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2959a Education Medicaid receipts

(a) It is the intent of the General Assembly that the State of Vermont shall maximize its receipt of federal Medicaid dollars available for reimbursement of medically related services provided to students who are Medicaid eligible. It is further the intent that:

(1) each supervisory union identify special education and other students eligible for Medicaid reimbursement and, to the extent possible, submit Medicaid bills for services reimbursement; and

(2) the Agencies of Education and of Human Services work with local school districts to maximize reimbursements, including services to non-IEP students.

(b) A Medicaid Reimbursement Special Fund is established within the Agency of Education. Funds received by the State under this section shall be transferred to the Medicaid Reimbursement Special Fund. The Fund receipts shall be allocated in accordance with this section.

(c) At least annually, the Secretary of Education shall pay to each supervisory union submitting Medicaid bills under this section 50 percent of the reimbursed funds generated by the supervisory union’s bill, excluding claims generated by State-placed students. Unless the supervisory union has agreed to use the funds to operate a supervisory unionwide program or to distribute the funds in a different manner, upon receipt, the supervisory union shall distribute the funds to its member school districts based on how the funds were generated. The Secretary may withhold payment due a supervisory union pursuant to section 2950 of this title for a Medicaid-eligible State-placed student if the supervisory union has not submitted a Medicaid claim for reimbursable services for that student.

(d) If the amount of Medicaid reimbursement funds received for services provided in the prior State fiscal year exceeds $25,000,000.00, in addition to the 50 percent of the funds paid to supervisory unions submitting Medicaid bills, 25 percent of the amounts in excess of the $25,000,000.00 shall be paid into an incentive fund created in the Agency of Education. These funds shall be used for an incentive payment to supervisory unions with student participation rates of over 80 percent in accordance with a formula to be developed by the Agency, in consultation with the Vermont Superintendents Association. For any incentive payments made subsequent to fiscal year 2007, the $25,000,000.00 threshold of this subsection shall be increased by the percentage increase of 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 2005 through the fiscal year for which the payment is being determined, plus an additional one-tenth of one percent.

(e) Supervisory unions shall use funds received under this section to pay for reasonable costs of administering the Medicaid claims process, and school districts or supervisory unions shall use funds received under this section for prevention and intervention programs in prekindergarten through grade 12. The programs shall be designed to facilitate early identification of and intervention with children with disabilities and to ensure all students achieve rigorous and challenging standards approved and adopted by the State Board or locally adopted standards. A supervisory union shall provide annual written justification to the Secretary of Education on how it or its member districts used the funds. Such annual submission shall show how the funds’ use is expressly linked to those provisions of the supervisory union’s action plan that directly relate to improving student performance. A supervisory union shall include in its annual report the amount of the prior year’s Medicaid reimbursement revenues and the use of Medicaid funds consistent with the purposes set forth in this subsection.

(f) Up to 30 percent of Medicaid reimbursements received under this section shall be available for administrative costs of the Agencies of Education and of Human Services related to the collection, processing, and reporting of education Medicaid reimbursements and statewide programs. The Secretaries of Education and of Human Services shall expend monies from the Fund only as appropriated by the General Assembly.

(g) Remaining reimbursed funds shall be deposited into the Education Fund.

(Amended 1999, No. 62, § 126; 1999, No. 66 (Adj. Sess.), § 58, eff. Feb. 8, 2000; 2001, No. 142 (Adj. Sess.), § 186b; 2005, No. 182 (Adj. Sess.), § 19; 2005, No. 215 (Adj. Sess.), § 289; 2007, No. 192 (Adj. Sess.), § 6.024, eff. June 7, 2008; 2009, No. 44, § 41, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 204, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2959b Individualized education programs

A school district or supervisory union responsible for developing an individualized education program for a child with a disability may consider the cost of the provision of special education or related services to the child if:

(1) the district or supervisory union has developed the individualized education program in accordance with federal law through an individualized program team that included the parents;

(2) the individualized education program team has determined that the child’s placement contained in the program is appropriate for the child as that term is defined in federal law; and

(3) all the options under consideration by the district or supervisory union for fulfilling the requirements of the child’s individualized education program would constitute a free appropriate public education in the least restrictive environment for the child, as those terms are defined in federal law.

(Added 1999, No. 117 (Adj. Sess.), § 5.)

Subchapter 2 Aid for Special Education and Support Services

§ 2961 Census grant [Repealed July 1, 2028 if contingency met]

(a) As used in this section:

(1) “Average daily membership” shall have the same meaning as in subdivision 4001(1) of this title, except it shall exclude State-placed students.

(2) “Average daily membership of a supervisory union” means the aggregate average daily membership of the school districts that are members of the supervisory union or, for a supervisory district, the average daily membership of the supervisory district.

(3) “Long-term membership” of a supervisory union in any school year means the average of the supervisory union’s average daily membership over the most recent three school years for which data are available.

(4) “Uniform base amount” means an amount determined by:

(A) dividing an amount:

(i) equal to the average State appropriation for fiscal years 2018, 2019, and 2020 for special education under sections 2961 (standard mainstream block grants), 2963 (special education expenditures reimbursement), and 2963a (exceptional circumstances) of this title; and

(ii) increased by:

(I) for each of fiscal years 2021, 2022, and 2023, the annual change in the National Income and Product Accounts (NIPA) Implicit Price Deflator for State and Local Government Consumption Expenditures and Gross Investment as reported by the U.S. Department of Commerce, Bureau of Economic Analysis (inflation factor); and

(II) for each of fiscal years 2024, 2025, and 2026, the average inflation factor for fiscal years 2021, 2022, and 2023; by

(B) the statewide long-term membership.

(b) The State commits to satisfying its special education maintenance of fiscal support requirement under 34 C.F.R. § 300.163(a).

(c) Each supervisory union shall receive a census grant each fiscal year to support the provision of special education services to students on an individualized education program. Supervisory unions shall use this funding and other available sources of funding to provide special education services to students in accordance with their individualized education programs as mandated under federal law. A supervisory union may use census grant funds to support the delivery of the supervisory union’s comprehensive system of educational services under sections 2901 and 2902 of this title, but shall not use census grant funds in a manner that abrogates its responsibility to provide special education services to students in accordance with their individualized education programs as mandated under federal law.

(d)(1)(A) For fiscal year 2023, the amount of the census grant for a supervisory union shall be:

(i) the average amount it received for fiscal years 2018, 2019, and 2020 or the average amount it received for fiscal years 2019, 2020, and 2021, whichever amount is greater, from the State for special education under sections 2961 (standard mainstream block grants), 2963 (special education expenditures reimbursement), and 2963a (exceptional circumstances) of this title; increased by

(ii) the annual change in the National Income and Product Accounts (NIPA) Implicit Price Deflator for State and Local Government Consumption Expenditures and Gross Investment as reported by the U.S. Department of Commerce, Bureau of Economic Analysis.

(B) The amount determined under subdivision (A) of this subdivision (1) shall be divided by the supervisory union’s long-term membership, to determine the base amount of the census grant, which is the amount of the census grant calculated on a per student basis.

(2) For fiscal year 2027 and subsequent fiscal years, the amount of the census grant for a supervisory union shall be the uniform base amount multiplied by the supervisory union’s long-term membership.

(3) For fiscal years 2024, 2025, and 2026, the amount of the census grant for a supervisory union shall be determined by multiplying the supervisory union’s long-term membership by a base amount established under this subdivision. The base amounts for each supervisory union for fiscal years 2024, 2025, and 2026 shall move gradually the supervisory union’s fiscal year 2023 base amount to the fiscal year 2027 uniform base amount by prorating the change between the supervisory union’s fiscal year 2023 base amount and the fiscal year 2027 uniform base amount over this three-fiscal-year period.

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 15, eff. July 1, 1991; 1995, No. 157 (Adj. Sess.), § 13; 1997, No. 60, §§ 30, 30a, eff. July 1, 1998; 2003, No. 130 (Adj. Sess.), § 6; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2021; 2019, No. 112 (Adj. Sess.), § 1, eff. July 1, 2022; 2021, No. 175 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 2961 Census grant [Contingently repealed effective July 1, 2028]

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 15, eff. July 1, 1991; 1995, No. 157 (Adj. Sess.), § 13; 1997, No. 60, §§ 30, 30a, eff. July 1, 1998; 2003, No. 130 (Adj. Sess.), § 6; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2021; 2019, No. 112 (Adj. Sess.), § 1, eff. July 1, 2022; contingently amended by 2021, No. 175 (Adj. Sess.), § 1, eff. July 1, 2022; contingently repealed on July 1, 2028 by 2025, No. 73, § 42(c).)

§ 2961a Repealed

[Repealed]

1995, No. 157 (Adj. Sess.), § 30(a)(3).

§ 2962 Extraordinary special education reimbursement

(a)(1) As used in this section, “child” means a student with disabilities who is three years of age or older in the current school year.

(2) As used in this subchapter, “extraordinary expenditures” means a supervisory union’s allowable special education expenditures that for any one child in a fiscal year exceed $60,000.00, increased annually by the annual change in the National Income and Product Accounts (NIPA) Implicit Price Deflator for State and Local Government Consumption Expenditures and Gross Investment as reported by the U.S. Department of Commerce, Bureau of Economic Analysis.

(3) The State Board of Education shall define allowable special education expenditures that shall include any expenditures required under federal law in order to implement fully individual education programs under the Individuals with Disabilities Education Act, 20 U.S.C. chapter 33, and any costs of mediation conducted by a mediator who is approved by the Secretary.

(b) If a supervisory union has extraordinary expenditures, it shall be eligible for extraordinary special education reimbursement (extraordinary reimbursement) as provided in this section.

(c) A supervisory union that has extraordinary expenditures in a fiscal year for any one child shall be eligible for extraordinary reimbursement equal to:

(1) an amount equal to its special education expenditures in that fiscal year for that child that exceed the extraordinary expenditures threshold amount under subdivision (a)(2) of this section (excess expenditures) multiplied by 95 percent; plus

(2) an amount equal to the lesser of:

(A) the amount of its excess expenditures; or

(B)(i) the extraordinary expenditures threshold amount under subdivision (a)(2) of this section; minus

(ii) the base amount of the census grant received by the supervisory union under subsection 2961(d) of this title for that fiscal year; multiplied by

(iii) 60 percent.

(d) The State Board of Education shall establish by rule the administrative process for supervisory unions to submit claims for extraordinary reimbursement under this section and for the review and payment of those claims.

(e) Under section 2973 of this title, a supervisory union, in its role as the local education agency, may place a student with an individualized education program under the Individuals with Disabilities Education Act, 20 U.S.C. chapter 33, with certain approved independent schools that accept public tuition. If the approved independent school is entitled to special education cost reimbursement under that section, it may bill the supervisory union for excess special education costs incurred by the independent school in providing special education services to that student beyond those covered by general tuition. If those costs for that student exceed the extraordinary expenditures threshold as defined in subdivision (a)(2) of this section, the supervisory union shall be entitled to extraordinary reimbursement under this section for that student as if it incurred those costs directly.

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 107, § 6; 1989, No. 230 (Adj. Sess.), §§ 18, 26; 1995, No. 157 (Adj. Sess.), § 14, eff. July 1, 1997; 1995, No. 157 (Adj. Sess.), § 22; 1997, No. 60, § 30b, eff. July 1, 1998; 2003, No. 36, § 13; 2003, No. 130 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 205, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 14, eff. July 1, 2019; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.)

§ 2963 Repealed

[Repealed]

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 107, § 7; 1989, No. 230 (Adj. Sess.), § 19, eff. July 1, 1991; 1991, No. 104, § 1, eff. June 27, 1991; 1991, No. 104, § 3; 1995, No. 157 (Adj. Sess.), § 15, eff. July 1, 1997; 1997, No. 60, § 30c, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 114, eff. March 11, 1998; 2001, No. 8, § 13; 2003, No. 36, § 14; 2003, No. 130 (Adj. Sess.), § 8; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; repealed on July 1, 2022 by 2017, No. 173 (Adj. Sess.), § 5, as amended by 2019, No. 112 (Adj. Sess.), § 10(b).)

§ 2963a Repealed

[Repealed]

(Added 1997, No. 71 (Adj. Sess.), § 87, eff. March 11, 1998; amended 1999, No. 108 (Adj. Sess.), § 2, eff. May 10, 2000; 2005, No. 182 (Adj. Sess.), § 22; 2013, No. 92 (Adj. Sess.), § 206, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; repealed on July 1, 2022 by 2019, No. 72, § E.502.2, as amended by 2019, No. 112 (Adj. Sess.), § 10(b).)

§ 2964 Repealed

[Repealed]

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 107, § 8; amended 1989, No. 230 (Adj. Sess.), § 20, eff. July 1, 1991; 1995, No. 157 (Adj. Sess.), § 16; 2013, No. 92 (Adj. Sess.), § 207, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; repealed on July 1, 2022 by 2019, No. 72, § E.502.2 as amended by 2019, No. 112 (Adj. Sess.), § 10(b).)

§ 2965 Withholding of aid

If a supervisory union, school district, or agency fails to meet its legally established obligations toward a child with a disability or the child’s parent, and as a result the Agency of Education incurs costs to meet these obligations beyond those otherwise incurred under this chapter, the Secretary shall withhold the amount of funds incurred from any grants due the supervisory union, school district, or agency under this subchapter.

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1995, No. 157 (Adj. Sess.), § 22; 2013, No. 92 (Adj. Sess.), § 208, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.)

§ 2966 Repealed

[Repealed]

1995, No. 157 (Adj. Sess.), § 30(a)(4).

§ 2967 Aid projection

(a) On or before December 15, the Secretary shall publish an estimate, by each supervisory union, of its anticipated State special education funding under this chapter for the ensuing school year.

(b) As used in this section, State special education funding shall include:

(1) funds eligible for grants and reimbursements under sections 2961 and 2962 of this title;

(2) funds for services for persons who are visually impaired;

(3) funds for persons who are deaf or hard of hearing;

(4) funds for the interdisciplinary team program;

(5) funds expended for training and programs to meet the needs of students with emotional or behavioral challenges under subsection 2969(c) of this title; and

(6) funds expended for training under subsection 2969(d) of this title.

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 27; 1995, No. 157 (Adj. Sess.), § 17; 1997, No. 60, § 30d, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 88, eff. March 11, 1998; 2003, No. 36, § 15; 2003, No. 130 (Adj. Sess.), § 9; 2011, No. 58, § 5, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 209, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 79; 2013, No. 142 (Adj. Sess.), § 31; 2015, No. 131 (Adj. Sess.), § 25; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022; 2019, No. 112 (Adj. Sess.), § 2, eff. July 1, 2022.)

§ 2968 Repealed

[Repealed]

(Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 21; 1995, No. 157 (Adj. Sess.), § 18; 2013, No. 92 (Adj. Sess.), § 210, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; repealed on July 1, 2022 by 2019, No. 72, § E.502.2, as amended by 2019, No. 112 (Adj. Sess.), § 10(b).)

§ 2969 Payments

(a)(1) On or before August 15, December 15, and April 15 of each fiscal year, the State Treasurer shall withdraw from the Education Fund, based on a warrant issued by the Commissioner of Finance and Management, and shall forward to each supervisory union one-third of the census grant due to the supervisory union under section 2961 of this title for that fiscal year.

(2) On or before November 15, January 15, April 15, and August 1 of each school year, each supervisory union, to the extent it incurs extraordinary expenditures under section 2962 of this title, shall file a financial report with the Secretary in a form prescribed by the Secretary. The report shall describe total extraordinary expenditures actually incurred during the reporting period.

(3) On or before December 15, February 15, May 15, and September 15 of each school year, based on a warrant issued by the Commissioner of Finance and Management, the State Treasurer shall withdraw from the Education Fund and shall forward to each supervisory union the amount of extraordinary reimbursement incurred by the supervisory union under section 2962 of this title that is unreimbursed and determined by the Agency of Education to be payable to the supervisory union.

(b) [Repealed.]

(c) For the purpose of meeting the needs of students with emotional or behavioral challenges, each fiscal year the Secretary shall use for training, program development, and building school and regional capacity up to one percent of the State funds appropriated under this subchapter.

(d) For the training of teachers, administrators, and other personnel in the identification and evaluation of and provision of educational services to children who require educational supports, each fiscal year the Secretary shall use up to 0.75 percent of the State funds appropriated under this subchapter. In order to set priorities for the use of these funds, the Secretary shall identify effective practices and areas of critical need. The Secretary may expend up to five percent of these funds for statewide training and shall distribute the remaining funds to school districts or supervisory unions.

(e) School districts and supervisory unions that apply for funds under this section must submit a plan for training that will result in lasting changes in their school systems and give assurances that at least 50 percent of the costs of training, including in-kind costs, will be assumed by the applicant. The Secretary shall establish written procedures and criteria for the award of such funds. In addition, the Secretary may identify schools most in need of training assistance and may pay for 100 percent of the assistance to the supervisory union or school district for these schools to fund the provision of training assistance for these schools.

(Added 1989, No. 107, § 9; amended 1989, No. 230 (Adj. Sess.), §§ 7, 22; 1995, No. 157 (Adj. Sess.), § 19 eff. July 1, 1997; 1995, No. 157 (Adj. Sess.), § 24; 1997, No. 60, § 30e, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 116, eff. March 11, 1998; 2005, No. 71, § 267; 2013, No. 92 (Adj. Sess.), § 211, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.)

§§ 2970, 2971 [Reserved for future use.]
§ 2972 Repealed

[Repealed]

1995, No. 157 (Adj. Sess.), § 30(a)(4).

§ 2973 Independent school tuition rates

(a)(1) Notwithstanding any provision of law to the contrary, an approved independent school that accepts public tuition shall enroll any student with an individualized education program who requires special education services and who is placed in the approved independent school as an appropriate placement and least restrictive environment for the student by the student’s individualized education program team or by the local education agency (LEA); provided, however, that this requirement shall not apply to an independent school that limits enrollment to students who are on an individualized education program or a plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and who are enrolled pursuant to a written agreement between the LEA and the school.

(2) In placing a student with an independent school under subdivision (1) of this subsection, the student’s individualized education program team and the LEA shall comply with all applicable federal and State requirements.

(3) An approved independent school is not required to demonstrate that it has the resources to serve every category of special education as defined under State Board of Education rules in order to be approved or retain its approval to receive public funding for general tuition.

(4) The terms “special education services,” “LEA,” and “individualized education program” or “IEP” as used in this section shall have the same meanings as defined by State Board rules.

(b)(1) The Secretary of Education shall establish minimum standards of services for students receiving special education services in independent schools in Vermont and may advise independent schools as to the need for certain special education services in Vermont.

(2)(A) The Secretary of Education shall set, after consultation with independent schools in Vermont, and based on the level of services provided by the schools, the maximum rates to be paid by the Agency and supervisory unions or school districts for tuition, room, and board for residential placement of students who require special education services. The amount charged by an independent school for tuition shall reflect the school’s actual or anticipated costs of providing special education services to the student and shall not exceed the maximum rates set by the Secretary, provided that the Secretary may permit charges in excess of these maximum rates where the Secretary deems warranted.

(B)(i) An approved independent school that enrolls a student under subdivision (a)(1) of this section may bill the responsible LEA for excess special education costs incurred by the independent school in providing special education services beyond those covered by general tuition. Reimbursement of these excess special education costs shall be based on the direct-cost rates approved by the Secretary for services actually provided to the student consistent with the Agency of Education Technical Manual for special education cost accounting. The Agency of Education shall publish specific elements that must be included as part of an independent school’s invoice for excess special education costs, and these elements shall be included in the written agreement required under subdivision (c)(2) of this section.

(ii) In establishing the direct-cost rates for reimbursement under this subdivision (B), the Secretary shall apply the principle of treating an approved independent school and a public school with parity in the amount of federal, State, and local contributions to cover the costs of providing special education services.

(iii) An approved independent school that enrolls a student under subdivision (a)(1) of this section shall provide such documentation to the Secretary as the Secretary deems necessary in order to ensure that amounts payable under this subdivision (B) to the school are reasonable in relation to the special education services provided by the school. The Secretary may withhold, or direct an LEA to withhold, payment under this subdivision pending the Secretary’s receipt of required documentation under this subdivision, or may withhold, or direct an LEA to withhold, an amount determined by the Secretary as not reasonable in relation to the special education services provided by the school.

(C)(i) The Secretary shall set, after consultation with independent schools in Vermont, the maximum tuition rates to be paid by the Agency and supervisory unions or school districts to independent schools that limit enrollment to students who are on an IEP or a plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and who are enrolled pursuant to a written agreement between the LEA and the school. The maximum tuition rates shall be based on the level of services provided by the school.

(ii) The tuition rates established by the Secretary under this subdivision (C) shall be no more than the costs that are reasonably related to the level of services provided by the school and shall be set forth on a form prescribed for that purpose by the Secretary of Education. The Secretary shall determine the relationship between costs and the level of services by using generally accepted accounting principles, such as those set forth in the Handbook (II) for Financial Accounting of Vermont School Systems.

(iii) After the Secretary approves a tuition rate for an independent school under this subdivision (C), the school shall not exceed that tuition rate until such time as a new tuition rate is approved by the Secretary.

(c)(1) In order to be approved as an independent school eligible to receive State funding under subdivision (a)(1) of this section, the school shall demonstrate the ability to serve students with disabilities by:

(A) demonstrating an understanding of special education requirements, including the:

(i) provision of a free and appropriate public education in accordance with federal and State law;

(ii) provision of education in the least restrictive environment in accordance with federal and State law;

(iii) characteristics and educational needs associated with any of the categories of disability or suspected disability under federal and State law; and

(iv) procedural safeguards and parental rights, including discipline procedures, specified in federal and State law;

(B) committing to implementing the IEP of an enrolled student with special education needs, providing the required services, and appropriately documenting the services and the student’s progress;

(C) employing or contracting with staff who have the required licensure to provide special education services;

(D) agreeing to communicate with the responsible LEA concerning:

(i) the development of, and any changes to, the IEP;

(ii) services provided under the IEP and recommendations for a change in the services provided;

(iii) the student’s progress;

(iv) the maintenance of the student’s enrollment in the independent school; and

(v) the identification of students with suspected disabilities; and

(E) committing to participate in dispute resolution as provided under federal and State law.

(2) An approved independent school that enrolls a student requiring special education services who is placed with the school under subdivision (a)(1) of this section:

(A) shall enter into a written agreement with the LEA committing to the requirements under subdivision (1) of this subsection (c); and

(B) shall ensure that qualified school personnel attend planning meetings and IEP meetings for the student.

(d)(1) If a student is placed with an approved independent school under subsection (a) of this section and either the LEA and the school each certifies, or the hearing officer under subdivision (3) of this subsection certifies, to the Secretary of Education that the school is unable to provide required IEP services due to its inability to retain qualified staff, then the LEA shall make another placement that satisfies the federal requirements to provide the student with a free and appropriate public education in the least restrictive environment.

(2) If the conditions in subdivision (1) of this subsection are satisfied:

(A) the approved independent school shall not be subject to any disciplinary action or the revocation of its approved status by the State Board of Education due to its failure to enroll the student; and

(B) no private right of action shall be created on the part of the student or his or her family members, or any other private party, to:

(i) require the LEA to place the student with the approved independent school or the school to enroll the student; or

(ii) hold the LEA or the approved independent school responsible for monetary damages due to the failure of the school to enroll the student or the necessity for the LEA to make an alternative placement.

(3) If the LEA and approved independent school do not agree on whether the school is unable to retain qualified staff under subdivision (1) of this subsection, then the LEA and the school shall jointly contract with a hearing officer to conduct a hearing with the parties and make a determination, which shall be final. The cost for the hearing officer shall be split evenly between the two parties.

(e) Neither a school district nor any State agency shall pay rates for tuition, room, and board for students receiving special education in independent schools outside Vermont that are in excess of allowable costs approved by the authorized body in the state in which the independent school is located, except in exceptional circumstances or for a child who needs exceptional services, as approved by the Secretary.

(f) The State Board is authorized to enter into interstate compacts with other states to regulate rates for tuition, room, and board for students receiving special education in independent schools.

(Added 1989, No. 230 (Adj. Sess.), § 28; 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 212, eff. Feb. 14, 2014; 2017, No. 173 (Adj. Sess.), § 21, eff. July 1, 2023.)

§ 2973a Special education; best practices; policy

It is the public policy of the State that integrated special education services are recognized as an essential responsibility of the educational system that benefits all students and contribute to the good of the State. This section and section 2974 of this title recognize that best practices in delivery of such services promote this policy.

(Added 2007, No. 82, § 26.)

§ 2974 Special education program; fiscal review

Annually, the Secretary shall report to the State Board regarding:

(1) the total amount of census grants made to supervisory unions under section 2961 of this title;

(2) the total amount of extraordinary special education reimbursement made to supervisory unions under section 2962 of this title;

(3) results for special education students;

(4) the availability of special education staff;

(5) the consistency of special education program implementation statewide;

(6) the status of tiered systems of supports in supervisory unions; and

(7) a statewide summary of the special education student count, including:

(A) the percentage of the total average daily membership represented by special education students statewide and by supervisory union;

(B) the percentage of special education students by disability category; and

(C) the percentage of special education students served by public schools within the supervisory union, by day placement, and by residential placement.

(Added 1997, No. 60, § 31, eff. June 26, 1997; amended 1997, No. 71 (Adj. Sess.), § 115, eff. March 11, 1998; 1999, No. 117 (Adj. Sess.), § 6; 2007, No. 82, § 10; 2013, No. 92 (Adj. Sess.), § 213, eff. Feb. 14, 2014; 2015, No. 11, § 14; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 74, § 24; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.)

§ 2975 Unusual special education costs; financial assistance

The Secretary may use funds for allowable special education expenditures, as defined in State Board of Education rules, to directly assist supervisory unions with special education expenditures of an unusual or unexpected nature. These funds shall be appropriated in the amount of two percent times the census grant as defined in section 2961 of this title. The Secretary’s decision regarding a supervisory union’s eligibility for and amount of assistance shall be final.

(Added 2007, No. 66, § 13; amended 2013, No. 92 (Adj. Sess.), § 214, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2021; 2019, No. 112 (Adj. Sess.), § 3, eff. July 1, 2022.)

Chapter 103 Vocational Rehabilitation of Physically Disabled Persons

§§ 3011-3019 Repealed

[Repealed]

1989, No. 219 (Adj. Sess.), § 12; No. 230 (Adj. Sess.), § 3.

Chapter 105 Rehabilitation Center

§§ 3051-3056 Repealed

[Repealed]

1969, No. 208 (Adj. Sess.), § 3.

Chapter 121 School Taxes and Funds

Subchapter 1 General Provisions

§§ 3221-3223 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§§ 3224-3226 Repealed

[Repealed]

2013, No. 56, § 15(7), eff. May 30, 2013.

§§ 3227-3229 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

§ 3230 [Deleted.]

Subchapter 2 Town School Fund

§§ 3261-3266 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 3 United States Public Money

§§ 3301-3304 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 4 Permanent School Fund

§§ 3341-3348 Repealed

[Repealed]

1975, No. 243 (Adj. Sess.), § 10(a), eff. May 1, 1976.

Subchapter 5 Consolidated School Fund

§§ 3381-3383 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Chapter 123 State Aid for Capital Construction Costs

§ 3440 Statement of policy [Effective July 1, 2026]

It is the intent of this chapter to encourage the efficient use of public funds to modernize school infrastructure in alignment with current educational needs. School construction projects supported by this chapter should be developed taking consideration of standards of quality for public schools under section 165 of this title and prioritizing cost, geographic accessibility, 21st century education facilities standards, statewide enrollment trends, and capacity and scale that support best educational practices. Further, it is the intent of this chapter to encourage the use of existing infrastructure to meet the needs of Vermont students. Joint construction projects between two or more school districts and consolidation of buildings within a district where feasible and educationally appropriate are encouraged.

(Added 2025, No. 73, § 12, eff. July 1, 2026.)

§ 3441 Facilities Master Plan Grant Program; report [Repealed effective June 30, 2029]

(a) Intent. It is the intent of the General Assembly that the Facilities Master Plan Grant Program established pursuant to this section shall enable supervisory unions and independent career and technical education districts to develop a supervisory union level vision for all school buildings that meets the educational needs and goals of the supervisory union. The goal of a facilities master plan shall be to facilitate an evaluation of the capacity of existing facilities to deliver on identified 21st century educational goals. A facilities master plan shall also enable and require supervisory unions to engage in intentional and robust conversations with the larger community that will hopefully lead to the successful passage of bonds needed to support the renovation or construction needs of the supervisory union. It is the intent of the General Assembly that awards shall be granted in accordance with this section and in a manner that allows a maximum number of supervisory unions and independent career and technical education districts to successfully complete facilities master plans.

(b) Definition. As used in this section, “supervisory union” has the same meaning as in subdivision 11(a)(23) of this title and includes supervisory districts and independent career and technical education districts.

(c) Establishment. There is established the Facilities Master Plan Grant Program to be administered by the Agency of Education, from funds appropriated for this purpose to supervisory unions and independent career and technical education districts to support the development of educational facilities master plans. Grant funds may be used to hire a consultant to assist in the development of the master plan with the goal of developing a final master plan that complies with State construction aid requirements.

(d) Standards for the disbursement of funds. The Agency shall develop standards for the disbursement of grant funds in accordance with the following:

(1) Grants shall be awarded to applicants with the highest facilities needs. The Agency shall develop a prioritization formula based on an applicant’s poverty factor and average facilities condition index score. The Agency shall develop or choose a poverty metric to use for the prioritization formula. The Agency may give priority to applications with a regionalization focus that consist of more than one supervisory union or independent career and technical education district that apply as a consortium.

(2) Award amounts shall be commensurate with the gross square footage of buildings located within the applicable supervisory union or career and technical education district.

(3) The Agency shall develop minimum requirements for an educational facilities master plan, which shall include, at a minimum, the following elements:

(A) a description of the educational mission, vision, and goals of the supervisory union;

(B) a description of educational programs and services offered by the supervisory union;

(C) the performance of a space utilization assessment;

(D) the identification of new program needs;

(E) the development of enrollment projections;

(F) the performance of a facilities assessment; and

(G) information regarding the various design options explored to address the supervisory union’s identified needs.

(e) Report. Annually on or before December 31, the Agency shall submit to the House and Senate Committees on Education a written report with information on the implementation of the grant program created in this section.

(Added 2023, No. 149 (Adj. Sess.), § 1, eff. July 1, 2024; repealed by 2023, No. 149 (Adj. Sess.), § 2, eff. June 30, 2029.)

§ 3441 Repealed

[Repealed]

(Added 2023, No. 149 (Adj. Sess.), § 1, eff. July 1, 2024; repealed by 2023, No. 149 (Adj. Sess.), § 2, eff. June 30, 2029.)

§ 3442 State Aid for School Construction Program [Effective July 1, 2026]

The Agency of Education shall be responsible for implementing the State Aid for School Construction Program according to the provisions of this chapter. The Agency shall be responsible for:

(1) reviewing all preliminary applications for State school construction aid and issuing an approval or denial in accordance with section 3445 of this chapter;

(2) adopting rules pursuant to 3 V.S.A. chapter 25 pertaining to school construction and capital outlay, including rules to specify a point prioritization methodology and a bonus incentive structure aligned with the legislative intent expressed in section 3440 of this title;

(3) including as part of its budget submitted to the Governor pursuant to subdivision 212(21) of this title its annual school construction funding request;

(4) developing a prequalification and review process for project delivery consultants and architecture and engineering firms specializing in prekindergarten through grade 12 school design, renovation, or construction and maintaining a list of such prequalified firms and consultants;

(5) providing technical assistance and guidance to school districts and supervisory unions on all phases of school capital projects;

(6) providing technical advice and assistance, training, and education to school districts, supervisory unions, general contractors, subcontractors, construction or project managers, designers, and other vendors in the planning, maintenance, and establishment of school facility space;

(7) maintaining a current list of school construction projects that have received preliminary approval, projects that have received final approval, and the priority points awarded to each project;

(8) collecting, maintaining, and making publicly available quarterly progress reports of all ongoing school construction projects that shall include, at a minimum, the costs of the project and the time schedule of the project;

(9) recommending policies and procedures designed to reduce borrowing for school construction programs at both State and local levels;

(10) conducting a needs survey at least every five years to ascertain the capital construction, reconstruction, maintenance, and other capital needs for all public schools and maintaining such data in a publicly accessible format;

(11) developing a formal enrollment projection model or using projection models already available;

(12) encouraging school districts and supervisory unions to investigate opportunities for the maximum utilization of space in and around the district or supervisory union;

(13) collecting and maintaining a clearinghouse of prototypical school plans, as appropriate, that may be consulted by eligible applicants;

(14) retaining the services of consultants, as necessary, to effectuate the roles and responsibilities listed within this section; and

(15) notwithstanding 2 V.S.A. § 20(d), annually on or before December 15, submitting a written report to the General Assembly regarding the status and implementation of the State Aid for School Construction Program, including the data required to be collected pursuant to this section.

(Added 2025, No. 73, § 13, eff. July 1, 2026.)

§ 3443 State Aid for School Construction Advisory Board [Repealed effective July 1, 2035]

(a) Creation. There is hereby created the State Aid for School Construction Advisory Board, which shall advise the Agency on the implementation of the State Aid for School Construction Program in accordance with the provisions of this chapter, including the adoption of rules, setting of statewide priorities, criteria for project approval, and recommendations for project approval and prioritization.

(b) Membership.

(1) Composition. The Board shall be composed of the following eight members:

(A) four members who shall serve as ex officio members:

(i) the State Treasurer or designee;

(ii) the Commissioner of Buildings and General Services or designee;

(iii) the Executive Director of the Vermont Bond Bank or designee; and

(iv) the Chair of the State Board of Education or designee; and

(B) four members, none of whom shall be a current member of the General Assembly, who shall serve four-year terms as follows:

(i) two members, appointed by the Speaker of the House, each of whom shall have expertise in education or construction, real estate, or finance and one of whom shall represent a supervisory union; and

(ii) two members, appointed by the Committee on Committees, each of whom shall have expertise in education or construction, real estate, or finance and one of whom shall be an educator.

(2) Members with four-year terms.

(A) A member with a term limit shall serve a term of four years and until a successor is appointed. A term shall begin on January 1 of the year of appointment and run through December 31 of the last year of the term. Terms of these members shall be staggered so that not all terms expire at the same time.

(B) A vacancy created before the expiration of a term shall be filled in the same manner as the original appointment for the unexpired portion of the term.

(C) A member with a term limit shall not serve more than two consecutive terms. A member appointed to fill a vacancy created before the expiration of a term shall not be deemed to have served a term for the purpose of this subdivision (C).

(c) Duties. The Board shall advise the Agency on the implementation of the State Aid for School Construction Program in accordance with the provisions of this chapter, including:

(1) rules pertaining to school construction and capital outlay;

(2) project priorities;

(3) proposed legislation the Board deems desirable or necessary related to the State Aid for School Construction Program, the provisions of this chapter, and any related laws;

(4) policies and procedures designed to reduce borrowing for school construction programs at both State and local levels;

(5) development of a formal enrollment projection model or the consideration of using projection models already available;

(6) processes and procedures necessary to apply for, receive, administer, and comply with the conditions and requirements of any grant, gift, appropriation of property, services, or monies;

(7) the collection and maintenance of a clearinghouse of prototypical school plans that may be consulted by eligible applicants and recommended incentives to utilize such prototypes;

(8) the determination of eligible cost components of projects for funding or reimbursement, including partial or full eligibility for project components for which the benefit is shared between the school and other municipal and community entities;

(9) development of a long-term vision for a statewide capital plan in accordance with needs and projected funding;

(10) collection and maintenance of data on all public school facilities in the State, including information on size, usage, enrollment, available facility space, and maintenance;

(11) advising districts on the use of a needs survey to ascertain the capital construction, reconstruction, maintenance, and other capital needs for schools across the State; and

(12) encouraging school districts and supervisory unions to investigate opportunities for the maximum utilization of space in and around the district or supervisory union.

(d) Meetings.

(1) The Chair of the State Board of Education shall call the first meeting of the Board to occur on or before September 1, 2025.

(2) The Board shall select a chair from among its members at the first meeting.

(3) A majority of the membership shall constitute a quorum.

(4) The Board shall meet not more than six times per year.

(e) Assistance. The Board shall have the administrative, technical, and legal assistance of the Agency of Education.

(f) Compensation and reimbursement. Members of the Board shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010 for not more than six meetings per year.

(g) Report. On or before December 15, 2025, the Board shall submit a written report to the House Committees on Education and on Ways and Means and the Senate Committees on Education and on Finance on recommendations for addressing the transfer of any debt obligations from current school districts to future school districts as contemplated by Vermont’s education transformation.

(Added 2025, No. 73, § 14, eff. July 1, 2025; repealed by 2025, No. 73, § 15, eff. July 1, 2035.)

§ 3444 School Construction Aid Special Fund [Effective July 1, 2026]

(a) Creation. There is created the School Construction Aid Special Fund, to be administered by the Agency of Education. Monies in the Fund shall be used for the purposes of:

(1) awarding aid to school construction projects under section 3445 of this title;

(2) awarding grants through the Facilities Master Plan Grant Program established in section 3441 of this title;

(3) funding administrative costs of the State Aid for School Construction Program; and

(4) awarding emergency aid under section 3445 of this title.

(b) Funds. The Fund shall consist of:

(1) any amounts transferred or appropriated to it by the General Assembly; and

(2) any interest earned by the Fund.

(Added 2025, No. 73, § 16, eff. July 1, 2026.)

§ 3444a Repealed

[Repealed]

1999, No. 29, § 52(a).

§ 3445 Approval and funding of school construction projects [Effective July 1, 2026]

(a) Construction aid.

(1) Preliminary application for construction aid. A school district eligible for assistance under section 3447 of this title that intends to construct or purchase a new school, or make extensive additions or alterations to its existing school, and desires to avail itself of State school construction aid shall submit a written preliminary application to the Secretary. A preliminary application shall include information required by the Agency by rule and shall specify the need for and purpose of the project.

(2) Approval of preliminary application.

(A) When reviewing a preliminary application for approval, the Secretary shall consider:

(i) regional educational opportunities and needs, including school building capacities across school district boundaries, and available infrastructure in neighboring communities;

(ii) economic efficiencies;

(iii) the suitability of an existing school building to continue to meet educational needs; and

(iv) statewide educational initiatives.

(B) The Secretary may approve a preliminary application if:

(i)(I) the project or part of the project fulfills a need occasioned by:

(aa) conditions that threaten the health or safety of students or employees;

(bb) facilities that are inadequate to provide programs required by State or federal law or regulation;

(cc) excessive energy use resulting from the design of a building or reliance on fossil fuels or electric space heat; or

(dd) deterioration of an existing building; or

(II) the project results in consolidation of two or more school buildings and will serve the educational needs of students in a more cost-effective and educationally appropriate manner as compared to individual projects constructed separately;

(ii) the need addressed by the project cannot reasonably be met by another means;

(iii) the proposed type, kind, quality, size, and estimated cost of the project are suitable for the proposed curriculum and meet all legal standards;

(iv) the applicant achieves the level of “proficiency” in the school district quality standards regarding facilities management adopted by rule by the Agency; and

(v) the applicant has completed a facilities master planning process that:

(I) engages robust community involvement;

(II) considers regional solutions;

(III) evaluates environmental contaminants; and

(IV) produces a facilities master plan that unites the applicant’s vision statement, educational needs, enrollment projections, renovation needs, and construction projects.

(3) Priorities. Following approval of a preliminary application and provided that the district has voted funds or authorized a bond for the total estimated cost of a project, the Agency, with the advice of the State Aid for School Construction Advisory Board, shall assign points to the project as prescribed by rule of the Agency so that the project can be placed on a priority list based on the number of points received.

(4) Request for legislative appropriation. The Agency shall submit its annual school construction funding request to the Governor as part of its budget pursuant to subdivision 212(21) of this title. Following submission of the Governor’s recommended budget to the General Assembly pursuant to 32 V.S.A. § 306, the House Committee on Education and the Senate Committee on Education shall recommend a total school construction appropriation for the next fiscal year to the General Assembly.

(5) Final approval for construction aid.

(A) Unless approved by the Secretary for good cause in advance of commencement of construction, a school district shall not begin construction before the Secretary approves a final application. A school district may submit a written final application to the Secretary at any time following approval of a preliminary application.

(B) The Secretary may approve a final application for a project provided that:

(i) the project has received preliminary approval;

(ii) the district has voted funds or authorized a bond for the total estimated cost of the project;

(iii) the district has made arrangements for project construction supervision by persons competent in the building trades;

(iv) the district has provided for construction financing of the project during a period prescribed by the Agency;

(v) the project has otherwise met the requirements of this chapter;

(vi) if the proposed project includes a playground, the project includes a requirement that the design and construction of playground equipment follow the guidelines set forth in the U.S. Consumer Product Safety Commission Handbook for Public Playground Safety; and

(vii) if the total estimated cost of the proposed project is less than $50,000.00, no performance bond or irrevocable letter of credit shall be required.

(C) The Secretary may provide that a grant for a high school project is conditioned upon the agreement of the recipient to provide high school instruction for any high school pupil living in an area prescribed by the Agency who may elect to attend the school.

(D) A district may begin construction upon receipt of final approval. However, a district shall not be reimbursed for debt incurred due to borrowing of funds in anticipation of aid under this section.

(6) Award of construction aid.

(A) The base amount of an award shall be 20 percent of the eligible debt service cost of a project. Projects are eligible for additional bonus incentives as specified in rule for up to an additional 20 percent of the eligible debt service cost. Amounts shall be awarded annually and are subject to an annual appropriation for the purposes of the program.

(B) As used in subdivision (A) of this subdivision (6), “eligible debt service cost” of a project means the product of the lifetime cost of the bond authorized for the project and the ratio of the approved cost of a project to the total cost of the project.

(b) Emergency aid. Notwithstanding any other provision of this section, the Secretary may grant aid for a project the Secretary deems to be an emergency in the amount of 30 percent of eligible project costs, up to a maximum eligible total project cost of $300,000.00.

(Added 2025, No. 73, § 17, eff. July 1, 2026.)

§ 3446 Appeal [Effective July 1, 2026]

Any municipal corporation as defined in section 3447 of this title aggrieved by an order, allocation, or award of the Agency of Education may, within 30 days, appeal to the Superior Court in the county in which the project is located.

(Added 2025, No. 73, § 18, eff. July 1, 2026.)

§ 3447 School building construction; State bonds; city as school district

The State Treasurer may issue bonds under 32 V.S.A. chapter 13 in such amount as may from time to time be appropriated to assist incorporated school districts, joint contract schools, town school districts, union school districts, regional career technical center school districts, and independent schools meeting education quality standards that serve as the public high school for one or more towns or cities, or combination thereof, and that both receive their principal support from public funds and are conducted within the State under the authority and supervision of a board of trustees, not less than two-thirds of whose membership is appointed by the selectboard of a town or by the city council of a city or in part by such selectboard and the remaining part by such council under the conditions and for the purpose set forth in sections 3447-3456 of this title. A city shall be deemed to be an incorporated school district within the meaning of sections 3447-3456 of this title.

(Added 1995, No. 185 (Adj. Sess.), § 71, eff. May 22, 1996; amended 2001, No. 8, § 14; 2001, No. 33, § 5; 2011, No. 129 (Adj. Sess.), § 6, eff. May 11, 2012; 2015, No. 23, § 28.)

§ 3448 Approval and funding of school construction projects; renewable energy [Repealed effective July 1, 2026]

(a) Construction aid.

(1) Preliminary application for construction aid. A district or independent school eligible for assistance under section 3447 of this title that intends to construct or purchase a new school, or make extensive additions or alterations to its existing school, and desires to avail itself of State school construction aid shall submit a written preliminary application to the Secretary. A preliminary application shall include information required by the State Board by rule and shall specify the need for and purpose of the project.

(2) Approval of preliminary application.

(A) When reviewing a preliminary application for approval, the Secretary shall consider:

(i) regional educational opportunities and needs, including school building capacities across school district boundaries, and available infrastructure in neighboring communities;

(ii) economic efficiencies;

(iii) the suitability of an existing school building to continue to meet educational needs; and

(iv) statewide educational initiatives and the strategic plan of the State Board of Education.

(B) The Secretary may approve a preliminary application if:

(i) the project or part of the project fulfills a need occasioned by:

(I) conditions that threaten the health or safety of students or employees;

(II) facilities that are inadequate to provide programs required by State or federal law or regulation;

(III) excessive energy use resulting from the design of a building or reliance on fossil fuels or electric space heat; or

(IV) deterioration of an existing building;

(ii) the need addressed by the project cannot reasonably be met by another means; and

(iii) the proposed type, kind, quality, size, and estimated cost of the project are suitable for the proposed curriculum and meet all legal standards.

(3) Priorities. Following approval of a preliminary application and provided that the district has voted funds or authorized a bond for the total estimated cost of a project, the State Board shall assign points to the project so that the project can be placed on a priority list based on the number of points received. Once a project receives points, if it does not receive funding in a given year, it shall not lose points in subsequent years and, pursuant to rule of the Board and provided the scope of the project remains the same, it shall gain points due to length of time on the list and may gain points for any other reason. The points shall be assigned in the following priority:

(A) First priority is given to emergency projects in excess of $100,000.00 that address threats to the safety and health of students or employees created by unanticipated circumstances or events.

(B) Second priority is given to construction projects in excess of $10,000.00 that address a need occasioned by deterioration of an existing building or equipment pursuant to subdivision (2)(A) of this subsection (a) and that extend the useful life of the building but that do not make additions or extensive alterations to existing school facilities in which students are provided services. Examples of projects given priority under this subdivision (B) are replacement, addition, or repair to utilities; projects that address environmental quality issues; repair of a roof; replacement of an existing space-heating, water-heating, cooling, or refrigeration system; and replacement or upgrading of mechanical equipment.

(C) Remaining projects are given priority based on consideration of the relative degree of need pursuant to subdivision (2)(A) of this subsection (a).

(4) Request for legislative appropriation. By January 15 of each year, the State Board shall present the House Committee on Corrections and Institutions and the Senate Committee on Institutions with its annual capital construction funding request. Following receipt of the request, the Committees shall recommend a total school construction appropriation for the next fiscal year to the General Assembly. The General Assembly shall not revise the order of the project priorities presented by the State Board. The funding request to the Committees shall be in the form of separate line items as follows:

(A) a list of projects that have been assigned points in their order of priority, including the voted funds or authorized bond amount for each project;

(B) the cost of emergency projects that the State Board has approved but not yet reimbursed due to insufficient funds, as well as the estimated cost of those that might be approved in the coming year under subsection (d) of this section;

(C) the cost of projects to extend the life of a building that the State Board has approved but not yet reimbursed due to insufficient funds, as well as the estimated cost of those that might be approved by the State Board in the coming fiscal year under subdivision (3)(B) of this subsection (a).

(5) Final approval for construction aid.

(A) Unless approved by the Secretary for good cause in advance of commencement of construction, a school district shall not begin construction before the State Board approves a final application. A school district may submit a written final application to the State Board at any time following approval of a preliminary application.

(B) The State Board may approve a final application for a project provided that:

(i) the project has received preliminary approval;

(ii) the district has voted funds or authorized a bond for the total estimated cost of the project;

(iii) the district has made arrangements for project construction supervision by persons competent in the building trades;

(iv) the district has provided for construction financing of the project during a period prescribed by the State Board;

(v) the project has otherwise met the requirements of sections 3447-3456 of this title;

(vi) if the proposed project includes a playground, the project includes a requirement that the design and construction of playground equipment follow the guidelines set forth in the U.S. Consumer Product Safety Commission Handbook for Public Playground Safety; and

(vii) if the total estimated cost of the proposed project is less than $50,000.00, no performance bond or irrevocable letter of credit shall be required.

(C) The board of trustees of an independent school may submit a written final application to the State Board for a project for which a preliminary application has been approved by the Secretary, provided that each municipality represented on the board of trustees has voted funds or authorized a bond issue for 100 percent of the municipality’s estimated share of the project in an amount determined by the Secretary under this section.

(D) The State Board may provide that a grant for a high school project is conditioned upon the agreement of the recipient to provide high school instruction for any high school pupil living in an area prescribed by the Board who may elect to attend the school.

(E) A district may begin construction upon receipt of final approval. However, a district shall not be reimbursed for debt incurred due to borrowing of funds in anticipation of aid under this section.

(6) [Repealed.]

(7) Award of construction aid.

(A) Except as provided in other subdivisions of this subdivision (7) and elsewhere in law, the amount of an award shall be 30 percent of the approved cost of the project.

(B) The amount of an award for the incremental costs associated with the installation of a space-heating, water-heating, cooling, or refrigeration system that uses biomass, a geothermal ground-source, wind, or solar energy as the primary heating or cooling source shall be 75 percent of the approved cost of those elements of the project specifically related to the renewable fuel source being used, provided that those elements may include the costs of necessary equipment, a chimney, air quality technology, and additional square footage necessary to house the heating unit and fuel, and further provided that those elements shall not include the costs of staff areas, site improvements relating to fuel delivery, and other ancillary costs as determined by the Secretary.

(C) The amount of an award shall be 50 percent of the approved cost of a project or applicable portion of a project that results in consolidation of two or more school buildings and that will serve the educational needs of students in a more cost-effective and educationally appropriate manner as compared to individual projects constructed separately. A decision of the Secretary as to eligibility for aid under this subdivision (C) shall be final. This subdivision (C) shall apply only to a project that has received preliminary approval by June 30, 2013.

(8) Eligible construction cost.

(A) Space and cost parameters. Only those portions of a project shall be eligible for construction aid that meet space and cost parameters adopted by the State Board. The parameters shall define maximum square footage costs, maximum gross square footage per student by grade range and school size, and minimum and maximum square footage allowances per student for programs and services.

(B) Eligible costs. Construction costs eligible for State aid may include the cost of a preliminary land test on an approved project as required under 10 V.S.A. chapter 151 and any expenditures of federal funds for retrofitting to conserve energy or for asbestos abatement. Expenditures of federal funds for any other purpose shall not be eligible for reimbursement by State aid under this chapter. Expenditures of funds borrowed under subdivision 563(21) of this title shall not be eligible for reimbursement by State aid.

(9) Payment. Upon satisfactory evidence that a project approved under subdivision (5) of this subsection (a) is under construction or has been constructed, and upon appropriation of funds sufficient to fund the State aid due under this section, the State Board shall certify an award for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment of one-half of the award, or the entire award if the project is complete. After a project has been completed according to approved plans and specifications and the cost thereof has been audited by the Agency, the Secretary shall certify the remainder of the award due for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment. Provided, however, if a project that is included on a prioritized list, for which list the General Assembly has appropriated funds in any year, is not eligible to be certified for one-half of the award or for the entire award, and if another project of lesser priority is eligible for certification, nothing in this section shall preclude the State Board from certifying an award for the lesser priority project prior to the higher priority project.

(b) Refund upon sale. Upon the sale by a district of any item, building, or unit that may be relocated, for which State construction aid was awarded under this title, the district shall refund to the State a percentage of the sale price equal to the percentage of construction aid received. In no event shall the sum refunded be in excess of the amount of the original State aid received for the purchase of the item, building, or unit. All refunds shall be deposited with the State Treasurer and used for school construction aid awards.

(c) Repayment as a condition of general aid. No school district shall receive any State general aid unless the school district complies with subsection (b) of this section.

(d) Emergency aid. Notwithstanding any other provision of this section, the Secretary may grant aid pursuant to subdivision (a)(7) of this section for a project the Secretary deems to be an emergency, up to a maximum total project cost of $100,000.00.

(e) Rules. The State Board shall adopt rules pertaining to school construction and capital outlay.

(f) Aid in excess of statutory percentages. Notwithstanding any provision of law to the contrary, no approved school construction project deemed eligible by the Secretary for State construction aid in excess of the percentages set forth in subdivision (a)(7) of this section shall be guaranteed such additional funding until the additional funding is approved by the General Assembly.

(Added 1995, No. 185 (Adj. Sess.), § 72, eff. May 22, 1996; amended 1997, No. 60, § 36, eff. July 1, 1998; 1999, No. 29, § 51; 2001, No. 61, § 60, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), §§ 60, 66, eff. June 27, 2002; 2003, No. 121 (Adj. Sess.), §§ 52, 59, eff. June 8, 2004; 2005, No. 147 (Adj. Sess.), §§ 41-43, eff. May 15, 2006; 2007, No. 52, §§ 33-35, eff. May 28, 2007; 2007, No. 82, § 20; 2007, No. 200 (Adj. Sess.), § 43; 2009, No. 161 (Adj. Sess.), § 39, eff. June 4, 2010; 2011, No. 40, § 42, eff. May 20, 2011; 2013, No. 92 (Adj. Sess.), § 217, eff. Feb. 14, 2014; 2015, No. 93 (Adj. Sess.), § 1; 2015, No. 93 (Adj. Sess.), § 3, eff. July 1, 2020.)

§ 3448 Repealed

[Repealed]

(Added 1995, No. 185 (Adj. Sess.), § 72, eff. May 22, 1996; amended 1997, No. 60, § 36, eff. July 1, 1998; 1999, No. 29, § 51; 2001, No. 61, § 60, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), §§ 60, 66, eff. June 27, 2002; 2003, No. 121 (Adj. Sess.), §§ 52, 59, eff. June 8, 2004; 2005, No. 147 (Adj. Sess.), §§ 41-43, eff. May 15, 2006; 2007, No. 52, §§ 33-35, eff. May 28, 2007; 2007, No. 82, § 20; 2007, No. 200 (Adj. Sess.), § 43; 2009, No. 161 (Adj. Sess.), § 39, eff. June 4, 2010; 2011, No. 40, § 42, eff. May 20, 2011; 2013, No. 92 (Adj. Sess.), § 217, eff. Feb. 14, 2014; 2015, No. 93 (Adj. Sess.), § 1; 2015, No. 93 (Adj. Sess.), § 3, eff. July 1, 2020; repealed by 2025, No. 73, § 20(a), eff. July 1, 2026.)

§ 3448a Appeal [Repealed effective July 1, 2026]

Any municipal corporation or independent school as defined in section 3447 of this title aggrieved by an order, allocation, or award of the State Board of Education may, within 30 days, appeal to the Superior Court in the county in which the project is located.

(Added 1995, No. 185 (Adj. Sess.), § 73, eff. May 22, 1996; amended 2019, No. 131 (Adj. Sess.), § 111.)

§ 3448a Repealed

[Repealed]

(Added 1995, No. 185 (Adj. Sess.), § 73, eff. May 22, 1996; amended 2019, No. 131 (Adj. Sess.), § 111; repealed by 2025, No. 73, § 20(b), eff. July 1, 2026.)

§§ 3448b-3448d Repealed

[Repealed]

1995, No. 185, § 7a, eff. May 22, 1996.

§ 3448e Construction of career technical education facilities; approval and funding

(a) Definitions. For the purposes of this section:

(1) “Construction” includes the purchase of career technical education facilities.

(2) “School district” means, unless otherwise provided:

(A) a school district that manages a regional career technical center or a comprehensive high school; or

(B) a regional career technical center school district authorized under subchapter 5A of chapter 37 of this title.

(3) “Career technical education facilities” means regional technical centers and those portions of comprehensive high schools that are designed to provide State board-approved career technical education programs and services.

(b) Application of chapter. Except as otherwise provided in this section, the provisions of chapter 123 of this title shall apply to the construction of career technical education facilities.

(c) Approval of regional advisory board. The Secretary may approve a preliminary application for a project involving career technical education facilities if, in addition to meeting the other requirements of this chapter, the project has received the approval of the regional advisory board as defined under section 1542 of this title. This subsection shall not apply to a project proposed by a regional career technical center school district authorized under subchapter 5A of chapter 37 of this title.

(d) Involvement of the Department of Buildings and General Services. The Department of Buildings and General Services shall be available to consult with and share its expertise with the school district regarding the design and construction of any new career technical education facility or any alterations to existing career technical education facilities and for the analysis of any lease or lease-purchase proposal.

(e) Award of construction aid. The amount of an award shall be 50 percent of the approved cost of the project. Where the construction of career technical education facilities is undertaken in conjunction with the construction of noncareer technical education facilities, the approved costs of the project shall be allocated as determined by the Secretary.

(Added 2001, No. 149 (Adj. Sess.), § 61, eff. June 27, 2002; amended 2005, No. 147 (Adj. Sess.), § 48, eff. May 15, 2006; 2013, No. 92 (Adj. Sess.), § 218, eff. Feb. 14, 2014.)

§ 3448f Energy performance contracting; authorization; State aid

(a) Definitions. As used in this section:

(1) “Cost-saving measure” means any facility improvement, repair, or alteration or any equipment, fixture, or furnishing to be constructed or installed in any facility that is designed to reduce energy consumption and operating costs or to increase the operating efficiency of facilities for their appointed functions, that is cost effective, and that is further defined by State Board rule.

(2) “District” means a district or independent school eligible for assistance under section 3447 of this title.

(3) “Energy and operational cost-savings” means any expense that is eliminated or decreased on a long-term basis as a result of any cost-saving measure, but does not include shifting personnel costs or similar short-term cost-savings.

(4) “Performance contract” means a contract for the valuation, recommendation, and implementation of one or more cost-saving measures for the purpose of realizing energy and operational cost-savings where payment by the district is contingent on energy or operational cost-saving results.

(b) Authorization. Notwithstanding any provision of law to the contrary, a district may enter into a performance contract pursuant to this section for a period not to exceed 20 years. Cost-saving measures implemented under the contract shall comply with all State and local building codes.

(c) Selection of qualified contractor.

(1) Request for proposals. The district shall issue a request for proposals from individuals or entities interested in entering into a performance contract (who shall become the “contractor”), shall consider the proposals, and shall select a qualified contractor to engage in final contract negotiations. In developing the request for proposals and in selecting a qualified contractor, the district should make use of any assistance available from Efficiency Vermont, the School Energy Management Program of the Vermont Superintendents Association, and other similar entities. Factors to be considered in the final selection shall include contract terms, comprehensiveness of the proposal, comprehensiveness of cost-saving measures, experience of the contractor, quality of technical approach, and overall benefits to the district.

(2) Financial grade audit. The person selected pursuant to this subsection shall prepare a financial grade energy audit that, upon acceptance by the district, shall be part of the final performance contract executed with the district. If after preparation of the financial grade energy audit the district decides not to execute a performance contract with the contractor, the district shall pay the qualified contractor for costs incurred in preparing the financial grade energy audit. If, however, the district decides to execute a performance contract with the contractor, the costs of the financial grade energy audit shall be part of the costs of the performance contract.

(3) [Repealed.]

(d) Installment payment and lease-purchase agreements. A district may enter into a performance contract structured as an installment payment contract or lease-purchase agreement for the purchase and installation of cost-saving measures. Financing implemented through the contractor or a person other than the contractor is authorized.

(e) Payment schedule and savings. Each performance contract shall provide that all payments between parties, except obligations on termination of the contract before its expiration, shall be made over time, and that the objective of the performance contract is implementation of cost-saving measures and energy and operational cost-savings.

(f) State funding for energy conservation measures.

(1) Application for construction aid. A district that intends to construct or install cost-saving measures under a performance contract and wishes to receive State school construction aid in connection with those measures shall submit a written application to the Secretary that:

(A) specifies the need for and purpose of the project, including details of the cost-saving measure or measures proposed;

(B) provides details concerning the qualifications of the person with whom the district has entered or intends to enter into a performance contract and concerning the district’s adherence to the selection process required by subsection (c) of this section, including detailed information regarding the assistance received from Efficiency Vermont, the School Energy Management Program, and similar entities;

(C) provides detailed information concerning the energy and operational cost-savings projected to result from the proposed cost-saving measures;

(D) provides detailed information concerning the amount and schedule of payments to be made under the terms of the performance contract; and

(E) provides any other information the Secretary deems necessary for consideration of the application.

(2) Approval of application. After consultation with the Department of Buildings and General Services and any other expert resources that may be available, including Efficiency Vermont and the School Energy Management Program, the Secretary may approve a complete application.

(3) Priorities. Following approval of a district’s application, the State Board shall assign points, established by Board rule, to the project so that the project can be placed on a priority list distinct from but similar to the list established under section 3448 of this title, based on the number of points received. Once a project receives points, if it does not receive funding in a given year, it shall not lose points in subsequent years and, pursuant to Board rule and provided the scope of the project remains the same, it shall gain points due to the length of time on the list and may gain points for any other reason. Prioritized projects under this section shall be included in the State Board’s request for legislative appropriation as a separate and distinct line item under section 3448 of this title. Any legislative appropriation made to fund the line item for performance contracts shall not exceed 20 percent of the appropriation made in the same year to fund State aid for school construction under section 3448.

(4) Award of State aid. A district shall not be reimbursed for debt incurred due to borrowing funds in anticipation of aid under this section. The total amount of an award shall be 20 percent of the approved total cost of the project, provided the total award shall not exceed the total payment that would be due from the district, less interest.

(5) Eligible costs. A project or portions of a project under this section shall be eligible for aid pursuant to criteria established by State Board rule.

(6) Payment. Upon completion of the construction or installation of the cost-saving measure, determination by the Department of Buildings and General Services that implementation of the cost-saving measures is expected to result in energy and operational cost-savings, and legislative appropriation sufficient to fund the State aid due under this section, the State Board shall certify an award for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment of the award. A district awarded State aid under this section shall use the State aid solely for the purpose of paying all or a portion of the obligation due under the performance contract at the time the award is received.

(g) Refund upon sale. Upon the sale by a district of any energy-saving measure or building in which an energy-saving measure was constructed or installed, for which State aid was awarded under this section, the district shall refund funds equal to the aid received. All refunds shall be deposited with the State Treasurer and used for awards under this section and section 3448 of this title. No district shall receive any State general aid unless the district complies with this subsection.

(Added 2003, No. 121 (Adj. Sess.), § 58, eff. June 8, 2004; amended 2013, No. 92 (Adj. Sess.), § 219, eff. Feb. 14, 2014; 2021, No. 20, § 65; 2025, No. 72, § 14, eff. June 27, 2025.)

§ 3449 Repealed

[Repealed]

2013, No. 56, § 15(8), eff. May 30, 2013.

§ 3450 Repealed

[Repealed]

1995, No. 185, § 7a, eff. May 22, 1996.

§§ 3451, 3452 Repealed

[Repealed]

1963, No. 213, § 6, eff. June 29, 1963.

§ 3453 Repealed

[Repealed]

1999, No. 29, § 52(b).

§ 3453a Emergency operation centers and shelters

Any school building that may be designated as a local, regional, or State emergency operation center or shelter shall be designed for use as an emergency operations center or shelter. For this purpose, the proposed project shall include the installation of a wiring harness capable of being connected to emergency electric power generation to provide for emergency heating, lighting, and communications. The wiring installation cost to upgrade emergency facilities shall be included in the budgets submitted to the General Assembly for capital funding pursuant to 32 V.S.A. § 309. The State shall pay 100 percent of such costs, which shall at the Agency level be itemized and accounted for separately from those costs in which the State only shares in the project cost. The State shall not pay for the costs of purchasing the generator.

(Added 1999, No. 29, § 43, eff. May 19, 1999; amended 2009, No. 43, § 47, eff. May 27, 2009; 2021, No. 20, § 66.)

§ 3454 Deferred maintenance

No State school construction aid shall be available under this title for any proposed project or construction if the Secretary finds the need for the project or construction has arisen in whole or in part from significant deferred maintenance. The State Board, by rule, shall define “significant deferred maintenance.”

(Added 1995, No. 185 (Adj. Sess.), § 75, eff. May 22, 1996; amended 2013, No. 92 (Adj. Sess.), § 220, eff. Feb. 14, 2014.)

§ 3455 Repealed

[Repealed]

1999, No. 29, § 52(c).

§ 3455a Computer aided design

Whenever a school district or independent school makes final application for construction aid pursuant to subdivision 3448(a)(5) of this title, the district or school shall submit to the Secretary copies of site plans and building plans either in computer-aided design (CAD) format, if used, or, if not, in the form submitted by the architect or engineer to the school board or board of trustees.

(Added 1995, No. 185 (Adj. Sess.), § 77, eff. May 22, 1996; amended 2013, No. 92 (Adj. Sess.), § 221, eff. Feb. 14, 2014.)

§ 3456 Limit of indebtedness

The amount of indebtedness of an incorporated school district, town school district, or union school district incurred to finance any project approved under sections 3447-3456 of this title shall not be considered a part of the indebtedness of such local district for the purpose of determining its debt limit, as provided by 24 V.S.A. § 1762, or otherwise.

(Added 1953, No. 256, § 10; amended 1955, No. 266, § 2; 2013, No. 92 (Adj. Sess.), § 222, eff. Feb. 14, 2014.)

§§ 3457, 3457a Repealed

[Repealed]

1995, No. 62, § 60, eff. April 26, 1995.

§ 3458 Repealed

[Repealed]

1967, No. 134, § 5, eff. April 17, 1967.

§ 3458a Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§ 3458b Repealed

[Repealed]

1977, No. 105, § 20(a).

§ 3459 Repealed

[Repealed]

1967, No. 134, § 5, eff. April 17, 1967.

§ 3459a Repealed

[Repealed]

1977, No. 105, § 20(a).

§ 3460 Repealed

[Repealed]

1967, No. 134, § 5, eff. April 17, 1967.

§ 3460a Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§ 3461 Repealed

[Repealed]

1967, No. 134, § 5, eff. April 17, 1967.

§ 3461a Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§ 3461b Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§§ 3462, 3463 Repealed

[Repealed]

1967, No. 134, § 5, eff. April 17, 1967.

§§ 3464-3466 Repealed

[Repealed]

1969, No. 65, § 7.

§ 3467 Repealed

[Repealed]

1977, No. 105, § 20(a).

§ 3468 [Reserved for future use.]
§§ 3469-3471 Repealed

[Repealed]

1981, No. 170 (Adj. Sess.), § 10, eff. April 19, 1982.

§ 3472 Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§§ 3473, 3474 Repealed

[Repealed]

1987, No. 84, § 11(2).

§ 3475 Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§ 3476 Repealed

[Repealed]

1987, No. 84, § 11(2).

§§ 3477-3479 [Reserved for future use.]
§§ 3480, 3481 Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

§§ 3482-3485 [Reserved for future use.]
§ 3486 Repealed

[Repealed]

1985, No. 71, § 9, eff. Jan. 1, 1992.

§ 3487 Redesignated

[Redesignated]

[Transferred]

§§ 3488-3490 [Reserved for future use.]
§§ 3491-3499 Repealed

[Repealed]

1997, No. 60, § 35, eff. July 1, 1998.

Chapter 125 Federal Aid; School Construction

Subchapter 1 General School Support

§§ 3541-3545 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 2 School Building Construction or Repair

§ 3581 Acceptance

The State Board may accept, use, disburse, and account for federal funds made available for the purposes of acquisition, construction, reconstruction, remodeling, or repair of public school buildings.

(Amended 2013, No. 92 (Adj. Sess.), § 223, eff. Feb. 14, 2014.)

§ 3582 Formulation of plans

The State Board may formulate any State plan, including preparation of surveys and estimates of school building needs, required by federal legislation.

(Amended 2013, No. 92 (Adj. Sess.), § 224, eff. Feb. 14, 2014.)

§ 3583 Control by federal authority prohibited

No supervision or control may be exercised under the provisions of this subchapter by any federal authority over the administration, personnel, curriculum, instruction, methods of instruction, or materials of instruction in any Vermont public school.

Subchapter 3 Benefits Under Higher Education Facilities Act of 1963

§§ 3591-3595 Repealed

[Repealed]

2009, No. 135 (Adj. Sess.), § 26(5).

Subchapter 5 Tax-Credit Bond Financing

§ 3597 Tax-credit bond financing; qualified school academy zones; qualified school construction bonds

The American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, expanded existing and created new tax-credit bond programs available to public schools. Accordingly, school districts are authorized to issue bonds to finance public school building construction and rehabilitation, the purchase of equipment, the development of course materials, and teacher and personnel training, consistent with Sections 1397E and 54F of the Internal Revenue Code, pertaining to qualified school academy zones and qualified school construction bonds.

(Added 2009, No. 54, § 21, eff. June 1, 2009.)

Chapter 127 Use of Educational Trust Funds

Subchapter 1 Investment

§ 3641 Common investment of individual trust funds

In its discretion, an educational institution may associate together for common investment the funds of individual trusts or individual funds held by it whether created by order of court or otherwise, if the terms of the trust or gift do not require a separate investment. For that purpose, an educational institution may create an investment account in which may be placed for investment the whole or any part of the funds of trusts or gifts permitted to be associated. An individual trust or gift whose funds are thus associated shall at all times be the equitable owner of its pro rata share of the funds of such investment account and the net increase or decrease of its principal during the time its funds are a part of such account.

Subchapter 2 Change in Use of Fund

§ 3681 Complaint to Superior Court

If an educational corporation or association holds a fund of which, whether by statute or by usage, only the income may be expended, and, because of such limitation, such corporation or association is unable to reduce its indebtedness and to pay its debt and expenses from its current receipts, so that cessation of its activities or winding-up of its affairs and liquidation is threatened or impends, such corporation or association may bring its complaint to the Superior Court in the county in which it has its principal place of business, for relief as provided in this subchapter.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; amended 2019, No. 131 (Adj. Sess.), § 112.)

§ 3682 Contents of complaint; party defendant; notice

A complaint brought in accordance with section 3681 of this title shall set forth the situation of such corporation or association within the provisions of that section 3681 and shall describe particularly the fund involved and shall pray for relief under the provisions of this subchapter. The Attorney General shall be cited as party defendant. Public notice shall be given by publication of the substance of the complaint and the time and place to which the complaint is returnable, pursuant to the provisions of 1 V.S.A. § 174 and V.R.C.P. 4(g).

(Amended 2021, No. 20, § 67.)

§ 3683 Hearing; determination

If the Superior Court shall find upon hearing that the situation of such corporation or association is within the provisions of section 3681 of this title, that its affairs have been conducted in a proper manner, and that the purposes of its organization, the nature and results of its activities, and the general welfare require its continuance as a going organization, such court may authorize such corporation or association to use such part of the principal of such fund upon such terms as such court shall determine may be necessary to enable such corporation or association to rehabilitate itself and free itself in part or in whole from its indebtedness.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

§ 3684 Orders

The court may make all orders necessary or incidental to the exercise of the jurisdiction conferred by this subchapter, including such orders relating to the custody, preservation, and conservation of the assets and property of the corporation or association as may be deemed necessary and proper for the protection of all interests involved.

Chapter 129 School Property

Subchapter 1 School Buildings and Equipment

§ 3741 School construction; debt service; taxation

A school district that issues bonded debt to pay for capital construction costs is authorized under the provisions of sections 428 and 511 of this title to levy ad valorem taxes on the grand list to pay for debt service as it becomes due and payable and shall do so unless otherwise payable from other sources.

(Amended 1997, No. 71 (Adj. Sess.), § 89, eff. March 11, 1998; 2013, No. 92 (Adj. Sess.), § 225, eff. Feb. 14, 2014.)

§ 3742 Flag display

Each school district shall erect a flag pole on the building or premises of each public school and, while school is in session, at such times as it directs, shall cause a United States flag, which shall not be lettered or marked in any way, to be displayed. A United States flag and a State flag may be displayed inside the school building. A person who violates this section shall be fined not more than $10.00.

(Added 2013, No. 92 (Adj. Sess.), § 226, eff. Feb. 14, 2014.)

§ 3743 Textbooks, appliances, and supplies

The board shall select and provide all textbooks, appliances, and supplies required for use in the elementary schools and the textbooks required for use in the secondary schools in the town district that shall be paid for by the district. The selection of textbooks, appliances, and supplies shall be subject to the approval of the superintendent of the schools of the district. The board shall provide nonresident students attending the schools with the necessary textbooks, appliances, and supplies under the rules the Board of Education shall prescribe. The board of school directors with the superintendent shall make the rules and regulations it deems proper for the care and custody of all textbooks, appliances, and supplies.

(Amended 1965, No. 93, § 1, eff. July 1, 1966; amended 2019, No. 131 (Adj. Sess.), § 113.)

§§ 3743a-3745 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 2 Condemnation for School Purposes

§ 3781 Repealed

[Repealed]

1969, No. 298 (Adj. Sess.), § 79.

Subchapter 3 Transfer of Educational Institution Property to School District

§ 3821 Transfer; acceptance

An incorporated academy, institute, seminary, or other educational institution, having no capital stock, by vote of at least two-thirds of its directors, trustees, or other governing body, may authorize the transfer of all of its real and personal property, including trust funds, to the school district in which the academy, institute, seminary, or other educational institution is located as provided in this chapter. The school district, at an annual or special meeting of the legal voters warned for the purpose, may vote to accept the transfer of real and personal property, including trust funds, as provided in this chapter to be used for school purposes.

(Amended 2013, No. 92 (Adj. Sess.), § 227, eff. Feb. 14, 2014.)

§ 3822 Proceeding in Superior Court

(a) An incorporated academy, institute, seminary, or other educational institution, and a school district, upon completion of the votes required by section 3821 of this title and before transfer of any property, shall apply to the Superior Court of the county in which the property is located setting forth the votes and any other material facts.

(b) The court shall issue an order stating the substance of the bill and fixing the time and place of hearing. The plaintiff shall cause the order to be published in a newspaper named in the order, three weeks successively, the last publication to be at least 10 days prior to the date fixed for the hearing. The plaintiff shall give further notice as required by the order.

(c) Upon hearing, the court shall determine what portion, if any, of the real and personal property to be transferred is held in trust, may order the transfer of that property subject to the terms of the trust, may make any other orders and decrees for the protection and disposition of the same it deems proper, and shall order the remainder of the real and personal property to be transferred in accordance with the votes authorizing the transfer for use for school purposes.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2013, No. 92 (Adj. Sess.), § 228, eff. Feb. 14, 2014.)

§ 3823 The Austine School; financing

(a) Notwithstanding any provision of law to the contrary, the Vermont Center for the Deaf and Hard of Hearing, which owns and operates the Austine School for the Deaf, and its successors in interest are authorized to mortgage, pledge as collateral, sell, transfer, or otherwise convey any real property associated with the Austine School for the Deaf without consent of the General Assembly.

(b) All State capital appropriations made to or for the benefit of the Austine School for the Deaf prior to or subsequent to June 11, 2003 shall create a first priority lien in favor of the State, unless expressly waived by the General Assembly, provided that this first priority lien shall be subordinate, in an amount not to exceed $3,000,000.00, to the interest of any lender to whom the Vermont Center for the Deaf and Hard of Hearing has pledged its real property as collateral pursuant to subsection (a) of this section.

(c) If the Vermont Center for the Deaf and Hard of Hearing sells any or all of its real property, then, subject to the subordination provisions of subsection (b) of this section, all State capital appropriations made to or for the benefit of the Austine School shall be repaid to the State, without interest, from any remaining proceeds of the sale.

(Added 1993, No. 233 (Adj. Sess.), § 50, eff. June 21, 1994; amended 2003, No. 63, § 42, eff. June 11, 2003.)

§ 3824 The Austine School for the Deaf; selection of president

Any president of the Vermont Center for the Deaf and Hard of Hearing selected and hired subsequent to June 11, 2003 shall be selected and hired pursuant to the provisions for employing a superintendent of schools in section 241 of this title. For purposes of this section, the terms “supervisory union,” “supervisory union board,” and “supervisory district board” as used in section 241 shall mean the Board of Trustees of the Vermont Center for the Deaf and Hard of Hearing.

(Added 2003, No. 63, § 43, eff. June 11, 2003.)

Chapter 131 Educational and Health Buildings Financing Agency

§ 3851 Definitions

(a) “Agency” means the Vermont Educational and Health Buildings Financing Agency.

(b) “Facilities” means all or any part of any building, improvements to real property, equipment, furnishings, appurtenances, utilities, and other property, real or personal, determined by the Agency to be necessary or convenient in the operation of any eligible institution, including facilities previously acquired or constructed by such eligible institution.

(c) “Eligible institution” means any:

(1) nonprofit library that serves the public;

(2) private or independent nonprofit university, college, primary or secondary school in the State;

(3) the University of Vermont;

(4) the Vermont State Colleges; or

(5)(A) nonprofit hospital as defined in 18 V.S.A. § 1902;

(B) nonprofit institution whose purpose is devoted primarily to the maintenance and operation of diagnostic and therapeutic facilities for medical, surgical, or psychiatric care of ambulatory patients;

(C) nonprofit licensed nursing home; or

(D) nonprofit assisted living facility, nonprofit continuing care retirement facility, nonprofit residential care facility, or similar nonprofit facility for the continuing care of elders or the infirm, provided that such facility is owned by or under common ownership with an otherwise eligible institution, and in the case of facilities to be financed for an eligible institution provided by this subdivision (5) of this subsection (c), for which the Green Mountain Care Board, if required, has issued a certificate of need.

(d) “Bonds” means bonds authorized to be issued by the Agency under this chapter. “Notes” means notes authorized to be issued by the Agency under this chapter.

(e) “Cost” as applied to any facilities may embrace the cost of construction; the cost of acquisition, including the acquisition of all lands, structures, property, rights, rights of way, franchises, easements, and interests in land required for the construction or operation of any facilities; the cost of demolishing or removing any buildings or structures upon land acquired hereunder, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all furnishings, equipment and machinery, financing charges, interest prior to and during construction or acquisition and, if deemed advisable by the Agency, for a period not exceeding two years after completion of construction or acquisition, provision for reserves, cost of architectural, engineering, financial, and legal services, plans and specifications, studies, surveys, estimates of cost and of revenue, administrative expenses, expenses necessary or incident to determining the feasibility of the facilities; and any other expenses as may be necessary or incident to the construction or acquisition of the facilities, the financing thereof, and the placing of the facilities in operation. Any obligation or expense incurred by the Agency prior to the issuance of bonds for the facilities in connection with any of the foregoing items may be included as part of the cost; provided, however, that there may be included as part of the cost the payment or reimbursement to any eligible institution of its expenditures in connection with the acquisition or construction of any facilities incurred by such eligible institution not earlier than 25 years before the financing thereof by the Agency.

(f) “Financing agreement” means the agreement or agreements between the agency and any eligible institution or guarantor in respect of any facilities, under which the payments to the Agency shall be at least sufficient to pay all of the principal of and interest and any redemption premiums on, and to provide and maintain any reserves for, the bonds or notes that shall be issued by the Agency to pay the cost of such facilities, and to pay the expenses of the Agency in connection therewith, and without limiting the generality thereof, may consist of an agreement of lease, an installment sale contract, a purchase agreement, a conditional sale agreement, a loan agreement, a purchase money mortgage, a lease and leaseback, a lease or leases directly or indirectly with the eligible institution, or such other financing agreement or any combination of the foregoing, as the Agency may determine.

(g) “Guarantor” means any person liable, directly or indirectly, under the provisions of a financing agreement for the unsatisfied obligations of the eligible institution under that agreement, whether designated a guarantor, surety, accommodation party, insurer, or other designation.

(Added 1966, No. 56 (Sp. Sess.); § 2, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 1, eff. March 31, 1970; 1971, No. 67, §§ 1, 2, eff. April 15, 1971; 1979, No. 93 (Adj. Sess.), § 1, eff. Feb. 28, 1980; 1987, No. 30; 1991, No. 24, § 10; 1997, No. 148 (Adj. Sess.), § 68, eff. April 29, 1998; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 79, § 49a; 2013, No. 96 (Adj. Sess.), § 80; 2019, No. 131 (Adj. Sess.), § 114.)

§ 3852 Vermont Educational and Health Buildings Financing Agency; creation; members

(a) A board of 13 members known as the Vermont Educational and Health Buildings Financing Agency is created. It is a body corporate and politic constituting a public instrumentality of the State. The State Treasurer or his or her designee and the Secretaries of Education, of Human Services, and of Administration shall be members ex officio. The Governor, with the advice and consent of the Senate, shall appoint seven members for six-year terms. The members appointed by the Governor shall appoint two additional members whose term of office shall be two years.

(b) The Board shall select its chair and a vice chair, a treasurer, and a secretary. The term of the Chair, Vice Chair, Treasurer, and Secretary shall be one year, and they shall be elected at the first meeting of the Board each fiscal year. All members of the Board, except those ex officio, shall be entitled to reimbursement of their necessary expenses incurred in the performance of their official duties and also to per diem compensation for their services subject to approval of the Governor.

(c) [Repealed.]

(d) Notwithstanding any general or special law to the contrary, the provisions of 8 V.S.A. chapter 73 shall not apply to the Agency or to any loan made by the Agency in accordance with this title before or after February 14, 2014.

(Added 1966, No. 56 (Sp. Sess.), § 3, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 10, eff. March 31, 1970; 1971, No. 67, § 3, eff. April 15, 1971; 1987, No. 203 (Adj. Sess.), § 21 eff. May 27, 1988; 2011, No. 40, § 53, eff. May 20, 2011; 2013, No. 92 (Adj. Sess.), § 230, eff. Feb. 14, 2014; 2021, No. 20, § 68.)

§ 3853 Powers

The Agency may:

(1) Sue and be sued.

(2) Have a seal and alter it at pleasure.

(3) Acquire property, both real and personal, in the name of the Agency, including leasehold and other interest in land necessary or convenient in the Agency’s determination for its corporate purposes, and hold, mortgage, and dispose of (including selling and leasing) all property, both real and personal, all upon such terms and conditions as the Agency may deem advisable; provided, however, that the Agency shall not be required to acquire any interest in property in connection with the financing of any facilities.

(4) Make bylaws for the management and regulation of its affairs.

(5) Appoint officers, agents, consultants, and employees and fix their compensation, subject to approval of the Governor.

(6) Make and execute financing agreements and all other instruments necessary or convenient for the exercise of the powers and functions conferred on the Agency under this chapter.

(7) Prepare plans, specifications, designs, and estimates of cost for the acquisition and construction of facilities and, by contract or its own employees, acquire, construct, improve, maintain, and operate facilities; fix, revise, and collect fees, rents, and other charges for the use or occupancy of facilities or for services rendered by facilities; contract with holders of its bonds to fix, revise, and collect fees, rents, and charges producing revenues at least sufficient to pay all costs of operation, maintenance, and repair of the facilities and the principal, interest, and redemption premium, if any, on bonds; and provide by contract or otherwise for the promulgation, by the Agency or such other body or officer as may be specified by the Agency, of such reasonable and proper rules respecting facilities as the Agency may deem necessary to assure the maximum use of the facilities at all times.

(8) Borrow money and issue negotiable bonds or notes and provide for the rights of the holders thereof.

(9) Do all things necessary or convenient to carry out the purposes of the Agency.

(10) Acquire and enter into commitments to acquire any federally guaranteed security, including any federally guaranteed mortgage, and pledge or otherwise use any such federally guaranteed security in such manner as the Agency deems in its best interests to secure or otherwise provide a source of repayment on any of its bonds or notes issued on behalf of any eligible institution or enter into any appropriate agreement with any eligible institution by which the Agency may make a loan to such eligible institution for the purpose of acquiring and entering into commitments to acquire any federally guaranteed security. Any agreement entered into pursuant to this subdivision may contain such provisions that are deemed necessary or desirable by the Agency for the security or protection of the Agency or the holders of such bonds or notes; provided, however, that the Agency, prior to making any such acquisition, commitment, or loan, shall first determine, and shall first enter into an agreement with any such eligible institution to require that the proceeds derived from any such federally guaranteed security will be used for the purpose of providing or refinancing any facilities for any eligible institution.

(Added 1966, No. 56 (Sp. Sess.), § 4, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 2, eff. March 31, 1970; 1979, No. 93 (Adj. Sess.), § 2, eff. Feb. 28, 1980; 2019, No. 131 (Adj. Sess.), § 115.)

§ 3854 Operation and management of facilities

(a) The Agency may operate and manage, or may cause to be operated and managed by any agent or operator under written contract, facilities financed under this chapter.

(b) The Agency, in its sole discretion, shall establish fees, rates, rents, or other charges for services or products derived from facilities financed by it and no State, county, or local agency may exercise regulatory power over them.

(c) Any financing agreement authorized by this chapter shall be a general obligation of the eligible institution and may contain provisions, which may be a part of the contract with the holders of the bonds or notes of the Agency, as to:

(1) pledging all or any part of the monies, earnings, income, and revenues derived by the eligible institution from the facility or any part or parts thereof, or other real or personal property or revenues or money of the eligible institution, to secure payments required under the terms of the lease;

(2) the rates, rental fees, and other charges to be fixed and collected by the eligible institution, the amounts to be raised in each year thereby, and the use and disposition of those monies, earnings, income, and revenues;

(3) the setting aside of reserves and the creation of special funds and the regulation and disposition thereof;

(4) the procedure, if any, by which the terms of the financing agreement may be amended, the amount of bonds or notes to which holders must consent, and the manner in which the consent may be given;

(5) vesting in a trustee or trustees such specified properties, rights, powers, and duties as shall be deemed necessary or desirable for the security of the holders of the bonds or notes of the Agency issued for the facility;

(6) the obligations of the eligible institution with respect to the replacement, reconstruction, maintenance, operation, repairs, and insurance of the facility;

(7) defining the acts or omissions to act constituting a default in the obligations and duties of the eligible institution under a financing agreement, and providing for the rights and remedies of the Agency and of its bondholders or noteholders if default occurs;

(8) providing for disposition of the facility after liabilities of the Agency incurred for the facility have been met and the bonds or notes of the Agency issued therefor or secured by the revenues thereof have been paid or otherwise satisfied; and

(9) any other matters of like or different character that may be deemed necessary or desirable for the security or protection of the Agency or the holders of its bonds or notes.

(d) Whenever the Agency finances a facility for any eligible institution, the eligible institution shall be responsible for the operation, maintenance, and replacement costs thereof, and the covenant to pay under the financing agreement shall be absolute and unconditional. Only if the Agency operates and manages a facility, may it assume responsibility for costs of operation and maintenance.

(e) To obtain funds for the acquisition or construction or financing of any facilities and for other purposes authorized under this chapter, the Agency may from time to time issue negotiable bonds and notes as provided in this chapter.

(Added 1966, No. 56 (Sp. Sess.), § 5, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 3, eff. March 31, 1970; 1979, No. 93 (Adj. Sess.), § 3, eff. Feb. 28, 1980; 2019, No. 131 (Adj. Sess.), § 116; 2021, No. 20, § 69.)

§ 3855 Trust funds

(a) All monies received under the authority of this chapter, whether as proceeds from the sale of bonds or notes or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. Any officer with whom, or any bank or trust company with which, those monies are deposited shall act as trustee of them and shall hold and apply them for the purposes hereof, subject to such regulations as this chapter and the resolution authorizing the bonds or notes of any issue or the trust indenture securing the bonds may provide.

(b) All monies of the Agency derived from State, local, or federal appropriations or the sale of bonds or notes, and all monies constituting reserve funds, shall be paid to the treasurer of the Agency or to the trustee under the trust indenture securing the bonds or designated in the resolution authorizing the bonds, and all such monies shall be held, administered, secured, and applied as provided in such resolution or trust indenture. All deposits of the monies shall, if required by such resolution or trust indenture, be secured by obligations of the United States of America or of the State of Vermont of the market value equal at all times to the amount of the deposit, and all banks and trust companies are authorized to give such security for the deposits.

(c) The Auditor of Accounts of the State of Vermont and his or her legally authorized representatives may at any time examine the accounts and books of the Agency, including its receipts, disbursements, contracts, sinking funds, investments, and any other matters relating to its financial standing.

(Added 1966, No 56 (Sp. Sess.), § 6, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 4, eff. March 31, 1970.)

§ 3856 Bonds

(a) The Agency is authorized to issue from time to time bonds or notes of the Agency for the purposes authorized by this chapter and refunding bonds for the purpose of refunding any bonds issued by the Agency under this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of such bonds, irrespective of whether the bonds to be refunded have or have not matured. Refunding bonds may also be issued by the Agency for the purpose of refunding any bonds, including refunding bonds, issued by the Agency under this chapter and paying all or any part of the cost of acquiring or constructing any facilities. The issuance of the refunding bonds, the maturities and other details thereof, the rights and remedies of the holders thereof and the rights, powers, privileges, and obligations of the Agency with respect to the same shall be governed to the fullest extent feasible by the provisions of this chapter pertaining to bonds. The Agency may also issue its negotiable bonds for the purpose of paying or otherwise satisfying in accordance with their terms any bonds, mortgages, notes, loans, or other contractual obligations of any eligible institution assigned or transferred to or assumed by the Agency in connection with financing the acquisition by the Agency of any facilities from such eligible institution. Except as may otherwise be expressly provided by the Agency, bonds and notes issued under this chapter shall be general obligations, payable out of any monies or revenues of the Agency, subject only to any agreements with the holders of the bonds or notes pledging any particular monies or revenues. Notwithstanding any of the provisions of this chapter or any recitals in any bonds or notes issued under this chapter, all bonds, notes, and interest coupons appertaining to them shall have and are hereby declared to have all the qualities and incidents, including negotiability, of investment securities under the Uniform Commercial Code, but no provision of such code respecting the filing of a financing statement to perfect a security interest shall be applicable to any security interest created in connection with the issuance of any bonds or notes. No bonds or notes of the Agency may be issued to acquire or construct any facilities unless the Agency first certifies to the Governor that in its opinion such facilities are needed and will provide adequate revenue derived from rents or otherwise to repay the bonds and the interest thereon when due.

(b) The bonds shall be authorized by resolution of the board, be in such denominations and bear such date or dates, mature at such time or times not exceeding 40 years from their respective dates, be in such forms, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places, and be subject to such terms of redemption as the Agency may provide by resolution or in the trust indenture. If any officer whose signature or a facsimile thereof appears on any bonds, notes, or coupons ceases to be that officer before the delivery of the bonds or notes, the signature or facsimile shall nevertheless be valid and sufficient for all purposes as if he or she had remained in office until the delivery, and any bond or note may bear the facsimile signature of or may be signed by that person although at the date of the bond or note the person may not have been that officer. The Agency may sell bonds in such amounts and in such manner, either at public or private sale, and for such prices as it may determine may best carry out the purposes of this chapter.

(c) The bonds may be issued for any corporate purpose of the Agency including, without limiting the generality of the foregoing, payment to any reserve fund required by any trust indenture securing bonds or any bond resolution authorizing bonds.

(d) Any resolution authorizing bonds or the trust indenture securing them may contain provisions, which may be a part of the contract with the holders of the bonds, as to:

(1) pledging all or any part of the monies of the Agency to secure the payment of the bonds, including the revenues of designated facilities, the proceeds of any grant in aid of the Agency received from any private or public source, or any monies received under the terms of lease;

(2) the setting aside of the revenues or sinking funds and the regulations or disposition thereof;

(3) limitations on the purpose to which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied;

(4) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds;

(5) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds to which the holders must consent, and the manner in which consent may be given;

(6) the creation of special funds into which any monies of the Agency may be deposited;

(7) vesting in a trustee or trustees such properties, rights, powers, and duties in trust as the Agency may determine, which may include any or all of the rights, powers, and duties of the trustee appointed by the bondholders, and limiting or abrogating the right of the bondholders to appoint a trustee under such section or limiting the rights, duties, and powers of the trustee; and

(8) defining the act or omissions to act that shall constitute a default in the obligations and duties of the Agency to the bondholders and providing for the rights and remedies of the bondholders in the event of such a default, including as a matter of right the appointment of a receiver.

(e) Any pledge of revenues or other monies made by the Agency shall be valid and binding from the time when the pledge is made; the revenues or other monies so pledged and thereafter received by the Agency shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Agency, irrespective of whether those parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded or filed in any public record.

(f) Neither the members of the board nor any persons executing the bonds shall be liable personally on them or be subject to any personal liability or accountability by the reason of the issuance thereof.

(g) The Agency may, out of funds available therefor, purchase any bonds issued by it at a price not exceeding the redemption price thereof. All bonds so purchased shall be cancelled.

(h)(1) In the discretion of the Agency, the bonds may be secured by a trust indenture by and between the Agency and a corporate trustee, and the resolution authorizing the bonds may provide for the appointment of a corporate trustee for the purpose of securing the bonds, which may be any trust company or bank having the powers of a trust company in or out of the State of Vermont.

(2) The trust indenture or resolution authorizing the bonds:

(A) may contain reasonable provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the Agency in relation to the acquisition, construction, maintenance, operation, repair, and insurance of the facilities and the custody, safeguarding, and application of all monies; and

(B) may provide that any facility shall be constructed and paid for under the supervision and approval of a bond construction oversight committee or other internal committee of the borrower’s board of directors or trustees that has been designated to provide reasonable assurance and reporting, or both, so that all phases of construction comply with applicable Vermont statutes and rules and the covenants of all bond financing agreements.

(3) The Agency may provide by the trust indenture or resolution authorizing the bonds for the payment of the proceeds of the bonds and the revenues of any facility or monies received under the terms of any lease, as the case may be, to the trustee of the trust indenture or resolution authorizing the bonds or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine.

(4) If the bonds are secured by trust indenture or by the appointment of a trustee pursuant to the resolution authorizing the bonds, the bondholders shall have no authority to appoint a separate trustee to represent them.

(i) Prior to the preparation of definitive bonds, the Agency may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when they have been executed and are available for delivery. The Agency may also provide for the replacement of any bonds or notes that shall become mutilated or shall be destroyed or lost. The Agency may exercise all the powers conferred by this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the State and without any other conditions or things than those proceedings, conditions, or things that are specifically required by this chapter. The Agency shall have power, at any time and from time to time after the authorization under this chapter of the issuance of bonds of the Agency, to borrow money for the purpose for which the bonds are to be issued in anticipation of the receipt of the proceeds of the sale of the bonds and within the authorized maximum amount of the bonds. The Agency is authorized to issue its notes under the provisions of this subsection to evidence money thus borrowed, which notes shall be payable from the proceeds of the sale of bonds and from any other money that may be made available for such payment. The notes shall mature not later than five years after the date of the authorization of the issuance of the bonds under this chapter. The notes may be renewed from time to time, but all such notes shall mature within the time limit for the payment of the money thus borrowed. The notes shall be authorized by a resolution of the Agency and shall be in such denomination or denominations, shall bear interest at such rate or rates, shall be in such form, and shall be executed in such manner, all as the Agency shall prescribe. The notes may be sold at any public or private sale in such manner and for such prices, or, if the notes shall be renewal notes, may be exchanged for notes then outstanding on such terms, as the Agency shall determine.

(j) In the case of bonds issued in connection with a new health care project subject to the provisions of 18 V.S.A. chapter 221, subchapter 5, the Agency shall not authorize bonds on behalf of an eligible institution defined under subdivision 3851(c)(5) of this title, unless the project and the capital expenditures associated with the project have been approved by the Green Mountain Care Board, pursuant to 18 V.S.A. chapter 221, subchapter 5. The Agency shall consider the recommendations of the Board in connection with any such proposed authorization.

(Added 1966, No. 56 (Sp. Sess.), § 7, eff. March 12, 1966; amended 1969, No. 80, eff. April 18, 1969; 1969, No. 224 (Adj. Sess.),§§ 5, 9, eff. March 31, 1970; 2003, No. 53, § 20; 2003, No. 63, § 74, eff. June 11, 2003; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2015, No. 23, § 43; 2019, No. 131 (Adj. Sess.), § 117.)

§ 3857 Liability of State

The bonds and other obligations of the Agency shall not be a debt of the State of Vermont nor shall the State be liable thereon, nor shall they be payable out of any funds other than those of the Agency.

(Added 1966, No. 56 (Sp. Sess.), § 8, eff. March 12, 1966.)

§ 3858 Legal investment

The bonds and notes are hereby made securities in which all public officers and bodies of this State and all municipalities and municipal subdivisions, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations, administrators, guardians, executors, trustees, committees, and other fiduciaries, in the State may properly and legally invest funds in their control.

(Added 1966, No. 56 (Sp. Sess.), § 9, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 6, eff. March 31, 1970.)

§ 3859 Exemptions from taxation

(a) The creation of the Agency and the carrying out of its corporate purposes is in all respects for the benefit of the people of the State of Vermont and for the improvement of their education, health, welfare, and prosperity, and is a public purpose. The Agency will be performing an essential governmental function in the exercise of the powers conferred upon it by this chapter. The State of Vermont covenants with the holders of the bonds and notes that the Agency shall be required to pay no taxes or assessments upon any of the property acquired by it or under its jurisdiction, control, possession, or supervision, or upon its activities in the operation and maintenance of facilities, or upon any monies, revenues, or other income received by the Agency; and that the bonds and notes of the Agency and the income from them shall at all times be exempt from taxation, except for transfer and estate taxes.

(b) The State of Vermont does pledge to and agree with the holders of the bonds that the State will not limit or alter the rights hereby vested in the Agency to acquire, mortgage, construct, reconstruct, and equip the facilities; to maintain, reconstruct, improve, and operate the facilities; to establish and collect such rates, rental, fees, and other charges as may be convenient or necessary to produce sufficient revenue to meet the expense of maintenance and operation; and to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest, thereon, with interest on any unpaid installment of interest, and all costs and expenses incurred by the Agency in connection with the facilities or in connection with any action or proceedings by or on behalf of the bondholders, are fully met and discharged.

(Added 1966, No. 56 (Sp. Sess.), § 10, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 7, eff. March 31, 1970; 1971, No. 67, § 4, eff. April 15, 1971; 2013, No. 92 (Adj. Sess.), § 231, eff. Feb. 14, 2014.)

§ 3860 Remedies of bondholders

(a) If the Agency defaults in the payment of principal of or interest on any of the bonds of any series after they become due, either at maturity or upon call for redemption, and the default continues for a period of 30 days, or if the Agency fails or refuses to comply with this chapter or defaults in any agreement made with the holders of the bonds of the series, the holders of 25 percent in aggregate principal amount of the bonds of the series then outstanding, in addition to all other remedies provided pursuant to this chapter or other law, may appoint by an instrument filed in an office of the clerk of the county in which the principal office of the eligible institution respecting which the bonds have been issued is located, and proved or acknowledged in the same manner as a deed would be recorded, subject to the limitation specified in subsection 3856(h) of this chapter, a trustee to represent the holders of the bonds of the series for the purposes provided in this section.

(b) The trustee may, and upon written request of the holders of 25 percent of the principal amount of the bonds of any series then outstanding upon any facility, shall, in his or her or its own name:

(1) by mandamus or other suit, action, or proceeding, enforce all rights of the bondholders, including the right to require the Agency to collect rentals and other revenues of any facility adequate to carry out any agreement as to, or pledge of, the rental and other revenues, and to require the Agency to carry out any other agreements with the bondholders and to perform its and their duties under this chapter;

(2) bring suit upon the bonds of that series;

(3) by action or suit, require the Agency to account as if it were the trustee of an express trust for the bondholders;

(4) by action or suit, enjoin any acts or things that may be unlawful or violate the rights of the bondholders; and

(5) declare all bonds of that series due and payable upon any facility; and, if all defaults are made good, annul, upon the written consent of the holders of 25 percent in principal amount of the bonds of that series then outstanding, the declaration and its consequences.

(c) The Superior Court and the presiding judge where the facility is located shall have jurisdiction of any suit, action, or proceedings by the trustee on behalf of the bondholders.

(d) Before declaring the principal of all bonds of any series due and payable, the trustees shall first give 30 days’ notice in writing to the Agency.

(e) Any trustee, whether or not all bonds of any series have been declared due and payable, shall be entitled as of right to the appointment of a receiver who may enter and take possession of the facility or any part of the facility and operate and maintain it and collect and receive all rentals and other revenues arising from it in the same manner as the Agency itself might do, and shall deposit all such monies in a separate account and apply the same in such manner as the court may direct. In any suit, action, or proceedings by the trustee, the fees, counsel fees, and expenses of the trustee and of the receiver, if any, shall constitute taxable disbursements and all costs and disbursements, allowed by the court shall be a first charge on any rentals and other revenues derived from the facility.

(f) The trustee shall, in addition to the provisions of this section relating to the trustee and to an extent not inconsistent with the provisions of the trust indenture or resolutions under which such trustee is acting, have all of the powers necessary or appropriate for the exercise of any functions specifically set forth in this section or incident to the general representation of the bondholders in the enforcement and protection of their rights, including the foreclosure of any mortgage given to secure the bonds and the power to liquidate any and all other security as may be given therefor.

(Added 1966, No. 56 (Sp. Sess.), § 11, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 8, eff. March 31, 1970; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2019, No. 131 (Adj. Sess.), § 118.)

§ 3861 Compensation of members and employees of Agency

No officer, member, or employee of the Agency may receive, or be lawfully entitled to receive, any pecuniary profit from the operation of the Agency except reasonable compensation for services in effecting one or more of its purposes set forth under law.

(Added 1966, No. 56 (Sp. Sess.), § 12, eff. March 12, 1966; amended 2019, No. 131 (Adj. Sess.), § 119.)

§ 3862 Reports

The Vermont Education and Health Buildings Finance Agency shall prepare and annually submit to the Governor a complete report listing all projects applied for, planned, in progress, and completed and a complete financial report duly audited and certified by a certified public accountant.

(Added 1966, No. 56 (Sp. Sess.), § 14, eff. March 12, 1966; amended 2003, No. 122 (Adj. Sess.), § 294j; 2013, No. 92 (Adj. Sess.), § 232, eff. Feb. 14, 2014; 2015, No. 131 (Adj. Sess.), § 26.)

Chapter 133 State Funding of Public Education

Subchapter 1 General Provisions

§ 4000 Statement of policy

(a) The intent of this chapter is to make educational opportunity available to each student in each town on substantially equal terms, in accordance with the Vermont Constitution and the Vermont Supreme Court decision of February 5, 1997, Brigham v. State of Vermont.

(b) [Repealed.]

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 2003, No. 68, § 25.)

§ 4001 Definitions

As used in this chapter:

[Subdivision (1) effective until contingency met; see also subdivision (1) effective July 1, 2028 if contingency met, set out below.]

(1) “Average daily membership” of a school district or, if needed in order to calculate the appropriate homestead tax rate, of the municipality as defined in 32 V.S.A. § 5401(9), in any year means:

(A) The full-time equivalent enrollment of students, as defined by the State Board by rule, who are legal residents of the district or municipality attending a school owned and operated by the district, attending a public school outside the district under section 822a of this title, or for whom the district pays tuition to one or more approved independent schools or public schools outside the district during the annual census period. The census period consists of the 11th day through the 30th day of the school year in which school is actually in session.

(B) The full-time equivalent enrollment in the year before the last census period, of any State-placed students as defined in subdivision 11(a)(28) of this title. A school district that provides for the education of its students by paying tuition to an approved independent school or public school outside the district shall not count a State-placed student for whom it is paying tuition for purposes of determining average daily membership. A school district that is receiving the full amount, as defined by the State Board by rule, of the student’s education costs under subsection 2950(a) of this title shall not count the student for purposes of determining average daily membership. A State-placed student who is counted in average daily membership shall be counted as a student for the purposes of determining weighted student count.

(C) The full-time equivalent enrollment for each prekindergarten child as follows: If a child is enrolled in 10 or more hours of prekindergarten education per week or receives 10 or more hours of essential early education services per week, the child shall be counted as one full-time equivalent pupil. If a child is enrolled in six or more but fewer than 10 hours of prekindergarten education per week or if a child receives fewer than 10 hours of essential early education services per week, the child shall be counted as a percentage of one full-time equivalent pupil, calculated as one multiplied by the number of hours per week divided by ten. A child enrolled in prekindergarten education for fewer than six hours per week shall not be included in the district’s average daily membership. There is no limit on the total number of children who may be enrolled in prekindergarten education or who receive essential early education services.

[Subdivision (1) effective July 1, 2028 if contingency met; see also subdivision (1) effective until contingency met, set out above.]

(1) “Average daily membership” of a school district in any year means:

(A) The full-time equivalent enrollment of students, as defined by the State Board by rule, who are legal residents of the district or municipality attending a school owned and operated by the district, attending a public school outside the district under section 822a of this title, or for whom the district pays tuition to one or more approved independent schools or public schools outside the district during the annual census period. The census period consists of the 11th day through the 30th day of the school year in which school is actually in session.

(B) The full-time equivalent enrollment in the year before the last census period, of any State-placed students as defined in subdivision 11(a)(28) of this title. A school district that provides for the education of its students by paying tuition to an approved independent school or public school outside the district shall not count a State-placed student for whom it is paying tuition for purposes of determining average daily membership. A school district that is receiving the full amount, as defined by the State Board by rule, of the student’s education costs under subsection 2950(a) of this title shall not count the student for purposes of determining average daily membership. A State-placed student who is counted in average daily membership shall be counted as a student for the purposes of determining weighted student count.

(C) The full-time equivalent enrollment for each prekindergarten child as follows: If a child is enrolled in 10 or more hours of prekindergarten education per week or receives 10 or more hours of essential early education services per week, the child shall be counted as one full-time equivalent pupil. If a child is enrolled in six or more but fewer than 10 hours of prekindergarten education per week or if a child receives fewer than 10 hours of essential early education services per week, the child shall be counted as a percentage of one full-time equivalent pupil, calculated as one multiplied by the number of hours per week divided by ten. A child enrolled in prekindergarten education for fewer than six hours per week shall not be included in the district’s average daily membership. There is no limit on the total number of children who may be enrolled in prekindergarten education or who receive essential early education services.

(2) “Equalized grand list” has the same meaning that equalized education property tax grand list has in 32 V.S.A. chapter 135.

(3)-(5) [Repealed.]

[Subdivision (6) repealed July 1, 2028 if contingency met.]

(6) “Education spending” means the amount of the school district budget, any assessment for a joint contract school, career technical center payments made on behalf of the district under subsection 1561(b) of this title, and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b) that is paid for by the school district, but excluding any portion of the school budget paid for from any other sources such as endowments, parental fundraising, federal funds, nongovernmental grants, or other State funds such as special education funds paid under chapter 101 of this title.

(A) [Repealed.]

(B) For all bonds approved by voters prior to July 1, 2024, voter-approved bond payments toward principal and interest shall not be included in “education spending” for purposes of calculating excess spending pursuant to 32 V.S.A. § 5401(12).

(7) “Long-term membership” of a school district in any school year means the:

(A) average of the district’s average daily membership, excluding full-time equivalent enrollment of State-placed students, over two school years, the latter of which is the current school year, plus

(B) full-time equivalent enrollment of State-placed students for the most recent of the two years.

(8) [Repealed.]

(9) “Public school” means an elementary school or secondary school for which the governing board is publicly elected. A public school may maintain evening or summer school for its students and it shall be considered a public school.

(10) “School district” means a town school district, city school district, incorporated school district, the member school districts of an interstate school district, a union school district, a unified union district, or an unorganized town or gore.

(11) “School year” means a year beginning on July 1 and ending on the following June 30.

(12) “Weighted long-term membership” of a school district in any school year means the long-term membership adjusted pursuant to section 4010 of this title.

[Subdivision (13) effective until contingency met; see also subdivision (13) effective July 1, 2028 if contingency met, set out below.]

(13) “Base education amount” means a number used to calculate categorical grants awarded under this title that is equal to $6,800.00 per equalized pupil, adjusted as required under section 4011 of this title.

[Subdivision (13) effective July 1, 2028 if contingency met; see also subdivision (13) effective until contingency met, set out above.]

(13) “Categorical base amount” means a number used to calculate categorical grants awarded under this title that is equal to $6,800.00 per equalized pupil, adjusted as required under section 4011 of this title.

[Subdivision (14) repealed July 1, 2028 if contingency met.]

(14) “Per pupil education spending” of a school district in any school year means the per pupil education spending of that school district as determined under subsection 4010(f) of this title.

(15) “Prekindergarten child” means a three- or four-year-old child who is enrolled in a prekindergarten program offered by or through a school district pursuant to rules adopted under section 829 of this title or who is receiving essential early education services offered pursuant to section 2956 of this title. Prekindergarten child also means a five-year-old child who otherwise meets the terms of this definition if that child is not yet eligible for or enrolled in kindergarten.

[Subdivision (16) effective July 1, 2028 if contingency met.]

(16) “Base amount” means a per pupil cost-factor amount of $15,033.00, which shall be adjusted for inflation annually on or before November 15 by the Secretary of Education. As used in this subdivision, “adjusted for inflation” means adjusting the base dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.

[Subdivision (17) effective July 1, 2028 if contingency met.]

(17) “Educational opportunity payment” means the base amount multiplied by the school district’s weighted long-term membership as determined under section 4010 of this title.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 117, eff. March 11, 1998; 1999, No. 152 (Adj. Sess.), § 166b; 2001, No. 8, § 15; 2003, No. 68, § 15, eff. June 18, 2003; 2003, No. 68, § 25; 2003, No. 130 (Adj. Sess.), § 10; 2005, No. 182 (Adj. Sess.), § 8; 2007, No. 62, §§ 4, 6; 2007, No. 66, § 16; 2007, No. 66, § 17, eff. July 1, 2009; 2007, No. 132 (Adj. Sess.), §§ 4, 5; 2009, No. 44, §§ 16, 20, 30, eff. May 21, 2009; 2009, No. 156 (Adj. Sess.), § E.500.1, eff. June 3, 2010; 2011, No. 38, § 1, eff. May 19, 2011; 2011, No. 45, § 13d, eff. May 24, 2011; 2011, No. 58, § 17, eff. May 31, 2011; 2011, No. 129 (Adj. Sess.), § 35; 2011, No. 156 (Adj. Sess.), § 23; 2013, No. 179 (Adj. Sess.), § E.514.5; 2015, No. 46, §§ 26, 34; 2015, No. 132 (Adj. Sess.), § 3, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 15, eff. July 1, 2019; 2019, No. 66, § 2, eff. June 17, 2019; 2021, No. 73, § 18; 2021, No. 127 (Adj. Sess.), § 24, eff. July 1, 2024; 2023, No. 183 (Adj. Sess.), § 20, eff. July 1, 2024; 2025, No. 73, § 34, contingently eff. July 1, 2028.)

§ 4002 Payment; allocation

(a) State and federal funds appropriated for services delivered by the supervisory union and payable through the Agency shall be paid to the order of the supervisory union and administered in accordance with the plan adopted under subdivision 261a(4) of this title. Funding for special education services under section 2969 of this title shall be paid to the supervisory unions in accordance with that section.

(b) The Secretary shall notify the superintendent or chief executive officer of each supervisory union in writing of federal or State funds disbursed to member school districts.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 2013, No. 92 (Adj. Sess.), § 234, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 2, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 8, eff. May 25, 2018.)

§ 4003 Conditions

(a) No school district shall receive any aid under this chapter unless that school district complies with the provisions of law relative to teachers’ salaries, appointment of superintendents, detailed financial reports to the Agency, and any other requirements of law.

(b) Aid to any district shall not be denied unless the district unreasonably refuses to comply with the requirements of law. Any school district denied aid by reason of the provisions of this section shall have the right within 60 days from the date of such denial to appeal to the Superior Court in the county where the district is situated.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 2013, No. 92 (Adj. Sess.), § 235, eff. Feb. 14, 2014.)

Subchapter 2 General State Funding of Public Education

§ 4010 Determination of weighted long-term membership and per pupil education spending [Effective until contingency met; see also 16 V.S.A. § 4010 effective July 1, 2028 if contingency met, set out below]

(a) Definitions. As used in this section:

(1) “EL pupils” means pupils described under section 4013 of this title.

(2) “FPL” means the Federal Poverty Level.

(3) “Weighting categories” means the categories listed under subsection (b) of this section.

(b) Determination of average daily membership and weighting categories. On or before the first day of December during each school year, the Secretary shall determine the average daily membership, as defined in subdivision 4001(1) of this title, of each school district for the current school year and shall perform the following tasks.

(1) Using average daily membership, list for each school district the number of:

(A) pupils in prekindergarten;

(B) pupils in kindergarten through grade five;

(C) pupils in grades six through eight;

(D) pupils in grades nine through 12;

(E) pupils whose families are at or below 185 percent of FPL, using the highest number of pupils in the district:

(i) that meet this definition under the universal income declaration form; or

(ii) who are directly certified for free and reduced-priced meals; and

(F) EL pupils.

(2)(A) Identify all school districts that have low population density, measured by the number of persons per square mile residing within the land area of the geographic boundaries of the district as of July 1 of the year of determination, equaling:

(i) fewer than 36 persons per square mile;

(ii) 36 or more persons per square mile but fewer than 55 persons per square mile; or

(iii) 55 or more persons per square mile but fewer than 100 persons per square mile.

(B) Population density data shall be based on the best available U.S. Census data as provided to the Agency of Education by the Vermont Center for Geographic Information.

(C) Using average daily membership, list for each school district that has low population density the number of pupils in each of subdivisions (A)(i)–(iii) of this subdivision (2).

(3)(A) Identify all school districts that have one or more small schools, which are schools that have an average two-year enrollment of:

(i) fewer than 100 pupils; or

(ii) 100 or more pupils but fewer than 250 pupils.

(B) As used in subdivision (A) of this subdivision (3), “average two- year enrollment” means the average enrollment of the two most recently completed school years, and “enrollment” means the number of pupils who are enrolled in a school operated by the district on October 1. A pupil shall be counted as one whether the pupil is enrolled as a full-time or part-time student.

(C) Using average two-year enrollment, list for each school district that has a small school the number of pupils in each of subdivisions (A)(i)–(ii) of this subdivision (3).

(c) Reporting on weighting categories to the Agency of Education. Each school district shall annually report to the Agency of Education by a date established by the Agency the information needed in order for the Agency to compute the weighting categories under subsection (b) of this section for that district. In order to fulfill this obligation, a school district that pays public tuition on behalf of a resident student (sending district) to a public school in another school district, an approved independent school, or an out-of-state school (each a receiving school) may request the receiving school to collect this information on the sending district’s resident student, and if requested, the receiving school shall provide this information to the sending district in a timely manner.

(d) Determination of weighted long-term membership. For each weighting category except the small schools weighting category under subdivision (b)(3) of this section, the Secretary shall compute the weighting count by using the long-term membership, as defined in subdivision 4001(7) of this title, in that category.

[Subdivision (d)(1) effective until contingency met; see also subdivision (d)(1) effective July 1, 2026 if contingency met, set out below.]

(1) The Secretary shall first apply grade level weights. Each pupil included in long-term membership shall count as one, multiplied by the following amounts:

(A) prekindergarten—negative 0.54;

(B) grades six through eight—0.36; and

(C) grades nine through 12—0.39.

[Subdivision (d)(1) effective July 1, 2026 if contingency met; see also subdivision (d)(1) effective until contingency met, set out above.]

(1) The Secretary shall first apply grade level weights. Each pupil included in long-term membership shall count as one, multiplied by the following amounts:

(A) [Repealed.]

(B) grades six through eight—0.36; and

(C) grades nine through 12—0.39.

(2) The Secretary shall next apply a weight for pupils whose family is at or below 185 percent of FPL. Each pupil included in long-term membership whose family is at or below 185 percent of FPL shall receive an additional weighting amount of 1.03.

(3) The Secretary shall next apply a weight for EL pupils. Each EL pupil included in long-term membership shall receive an additional weighting amount of 2.49.

(4) The Secretary shall then apply a weight for pupils living in low population density school districts. Each pupil included in long-term membership residing in a low population density school district, measured by the number of persons per square mile residing within the land area of the geographic boundaries of the district as of July 1 of the year of determination, shall receive an additional weighting amount of:

(A) 0.15, where the number of persons per square mile is fewer than 36 persons;

(B) 0.12, where the number of persons per square mile is 36 or more but fewer than 55 persons; or

(C) 0.07, where the number of persons per square mile is 55 or more but fewer than 100.

(5) The Secretary shall lastly apply a weight for pupils who attend a small school. If the number of persons per square mile residing within the land area of the geographic boundaries of a school district as of July 1 of the year of determination is 55 or fewer, then, for each pupil listed under subdivision (b)(3)(C) of this section (pupils who attend small schools):

(A) where the school has fewer than 100 pupils in average two-year enrollment, the school district shall receive an additional weighting amount of 0.21 for each pupil included in the small school’s average two-year enrollment; or

(B) where the small school has 100 or more but fewer than 250 pupils, the school district shall receive an additional weighting amount of 0.07 for each pupil included in the small school’s average two-year enrollment.

(6) A school district’s weighted long-term membership shall equal long-term membership plus the cumulation of the weights assigned by the Secretary under this subsection.

[Subsection (e) not in effect July 1, 2025-June 30, 2029.]

(e) Hold harmless. A district’s weighted long-term membership shall in no case be less than 96 and one-half percent of its actual weighted long-term membership the previous year prior to making any adjustment under this subsection.

(f) Determination of per pupil education spending. As soon as reasonably possible after a school district budget is approved by voters, the Secretary shall determine the per pupil education spending for the next fiscal year for the school district. Per pupil education spending shall equal a school district’s education spending divided by its weighted long-term membership.

(g) Guidelines. The Secretary shall develop guidelines to enable clear and consistent identification of pupils to be counted under this section.

(h) Updates to weights. On or before January 1, 2027 and on or before January 1 of every fifth year thereafter, the Agency of Education and the Joint Fiscal Office shall calculate, based on their consensus view, updates to the weights to account for cost changes underlying those weights and shall issue a written report on their work to the House and Senate Committees on Education, the House Committee on Ways and Means, and the Senate Committee on Finance. The General Assembly shall update the weights under this section and transportation reimbursement under section 4016 of this title not less than every five years and the implementation date for the updated weights and transportation reimbursement shall be delayed by a year in order to provide school districts with time to prepare their budgets. Updates to the weights may include recalibration, recalculation, adding or eliminating weights, or any combination of these actions.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 2, eff. June 2, 1999; 2003, No. 68, § 39, eff. June 18, 2003; 2003, No. 130 (Adj. Sess.), § 11; 2007, No. 62, § 7; 2007, No. 66, § 19; No. 82, §§ 7, 8; 2013, No. 92 (Adj. Sess.), § 236, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 32; 2013, No. 174 (Adj. Sess.), § 53; 2015, No. 46, § 22, eff. July 1, 2016; 2015, No. 46, § 24, eff. July 1, 2020; 2021, No. 73, § 19, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 4, eff. July 1, 2024; 2021, No. 185 (Adj. Sess.), § E.500.8, eff. July 1, 2024; 2023, No. 76, § 3.)

§ 4010 Determination of weighted long-term membership and educational opportunity payment [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 4010 effective until contingency met, set out above]

(a) Definitions. As used in this section:

(1) “EL pupils” means pupils described under section 4013 of this title.

(2) “FPL” means the Federal Poverty Level.

(3) “Weighting categories” means the categories listed under subsection (b) of this section.

(4) “Child with a disability” means any child in Vermont eligible under State rules to receive special education who is enrolled in any of kindergarten through grade 12.

(5) “Disability” means any of:

(A) a specific learning disability or a speech or language impairment, each of which is identified as “Category A”;

(B) an emotional disturbance, intellectual disability, developmental delay, or other health impairment, each of which is identified as “Category B”; or

(C) autism spectrum disorder, deaf-blindness, hearing impairment, orthopedic impairment, traumatic brain injury, or visual impairment, each of which is identified as “Category C.”

(6) “English language proficiency level” means each of the English language proficiency levels published as a standardized measure of academic language proficiency in WIDA ACCESS for ELLs 2.0 and available to members of the WIDA consortium of state departments of education.

(7) “Newcomer or SLIFE” means a pupil identified as a New American or as a student with limited or interrupted formal education.

(b) Determination of average daily membership and weighting categories. On or before the first day of December during each school year, the Secretary shall determine the average daily membership, as defined in subdivision 4001(1) of this title, of each school district for the current school year and shall, using average daily membership, list for each school district the number of

(1) pupils in prekindergarten;

(2) pupils in kindergarten through grade five;

(3) pupils in grades six through eight;

(4) pupils in grades nine through 12;

(5) pupils whose families are at or below 185 percent of FPL, using the highest number of pupils in the district:

(A) that meet this definition under the universal income declaration form; or

(B) who are directly certified for free and reduced-priced meals;

(6) EL pupils who have been most recently assessed at an English language proficiency level of:

(A) Level 1;

(B) Level 2 or 3;

(C) Level 4; or

(D) Level 5 or 6;

(7) EL pupils who are identified as Newcomer or SLIFE; and

(8) children with a disability whose disability is identified as:

(A) Category A;

(B) Category B; or

(C) Category C, provided that a child with multiple disabilities shall be counted solely under this subdivision (C).

(c) Reporting on weighting categories to the Agency of Education. Each school district shall annually report to the Agency of Education by a date established by the Agency the information needed in order for the Agency to compute the weighting categories under subsection (b) of this section for that district. In order to fulfill this obligation, a school district that pays public tuition on behalf of a resident student (sending district) to a public school in another school district, an approved independent school, or an out-of-state school (each a receiving school) may request the receiving school to collect this information on the sending district’s resident student, and if requested, the receiving school shall provide this information to the sending district in a timely manner.

(d) Determination of weighted long-term membership. For each weighting category, the Secretary shall compute the weighting count by using the long-term membership, as defined in subdivision 4001(7) of this title, in that category.

(1) Prekindergarten weight. Each pupil included in long-term membership who is enrolled in prekindergarten shall receive an additional weighting amount of negative 0.54.

(2) Economic disadvantage weight. Each pupil included in long-term membership whose family is at or below 185 percent of FPL shall receive an additional weighting amount of 1.02.

(3) EL proficiency weights. Each EL pupil included in long-term membership shall receive an additional weighting amount, based on the EL pupil’s English language proficiency level, of:

(A) 2.11, if assessed as Level 1;

(B) 1.41, if assessed as Level 2 or 3;

(C) 1.20, if assessed as Level 4; or

(D) 0.12, if assessed as Level 5 or 6.

(4) EL Newcomer/SLIFE weight. Each EL pupil included in long-term membership who is a Newcomer or SLIFE shall receive an additional weighting amount of 0.42.

(5) Special education weights. Each child with a disability included in long-term membership shall receive an additional weighting amount, based on the categorization of the child’s disability, of:

(A) 0.79, if the disability is identified as Category A;

(B) 1.89, if the disability is identified as Category B; or

(C) 2.49, if the disability is identified as Category C.

(6) A school district’s weighted long-term membership shall equal long-term membership plus the cumulation of the weights assigned by the Secretary under this subsection

(e) Hold harmless. A district’s weighted long-term membership shall in no case be less than 96 and one-half percent of its actual weighted long-term membership the previous year prior to making any adjustment under this subsection

(f) Determination of educational opportunity payment. The Secretary shall determine each school district’s educational opportunity payment by multiplying the school district’s weighted long-term membership determined under subsection (d) of this section by the base amount.

(g) Guidelines. The Secretary shall develop guidelines to enable clear and consistent identification of pupils to be counted under this section.

(h) Updates to weights, base amount, and transportation reimbursement. On or before January 1, 2026 and on or before January 1 of every fifth year thereafter, the Agency of Education and the Joint Fiscal Office shall calculate, based on their consensus view and with the advice and consultation of a professional judgment panel convened by the Agency, updates to the weights and the base amount, including any inflationary measure, to account for cost changes underlying those weights and shall issue a written report on their work to the House and Senate Committees on Education, the House Committee on Ways and Means, and the Senate Committee on Finance. The General Assembly shall update the weights under this section, the base amount, and transportation reimbursement under section 4016 of this title not less than every five years and the implementation date for the updated weights and transportation reimbursement shall be delayed by a year in order to provide school districts with time to prepare their budgets. Updates to the weights may include recalibration, recalculation, adding or eliminating weights, or any combination of these actions.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 2, eff. June 2, 1999; 2003, No. 68, § 39, eff. June 18, 2003; 2003, No. 130 (Adj. Sess.), § 11; 2007, No. 62, § 7; 2007, No. 66, § 19; No. 82, §§ 7, 8; 2013, No. 92 (Adj. Sess.), § 236, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 32; 2013, No. 174 (Adj. Sess.), § 53; 2015, No. 46, § 22, eff. July 1, 2016; 2015, No. 46, § 24, eff. July 1, 2020; 2021, No. 73, § 19, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 4, eff. July 1, 2024; 2021, No. 185 (Adj. Sess.), § E.500.8, eff. July 1, 2024; 2023, No. 76, § 3; 2025, No. 73, § 35, contingently eff. July 1, 2028.)

§ 4011 Education payments

[Subsection (a) effective until contingency met; see also subsection (a) effective July 1, 2028 if contingency met, set out below.]

(a) Annually, the General Assembly shall appropriate funds to pay for statewide education spending and a portion of a base education amount for each adult education and secondary credential program student.

[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a) effective until contingency met, set out above.]

(a) Annually, the General Assembly shall appropriate funds to pay for each school district’s educational opportunity payment and supplemental district spending, as defined in 32 V.S.A. § 5401, the small schools and sparsity support grants under section 4019 of this chapter, and a portion of a categorical base amount for each adult education and secondary credential program student.

[Subsection (b) effective until contingency met; see also subsection (b) effective July 1, 2028 if contingency met, set out below.]

(b) For each fiscal year, the base education amount shall be $6,800.00, 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 2005 through the fiscal year for which the amount is being determined, plus an additional one-tenth of one percent.

[Subsection (b) effective July 1, 2028 if contingency met; see also subsection (b) effective until contingency met, set out above.]

(b) For each fiscal year, the categorical base amount shall be $6,800.00, which shall be adjusted for inflation annually on or before November 15 by the Secretary of Education. As used in this subsection, “adjusted for inflation” means adjusting the categorical base dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal year 2005 through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.

[Subsection (c) effective until contingency met; see also subsection (c) effective July 1, 2028 if contingency met, set out below.]

(c) Annually, each school district shall receive an education spending payment for support of education costs. An unorganized town or gore shall receive an amount equal to its per pupil education spending for that year for each student. No district shall receive more than its education spending amount.

[Subsection (c) effective July 1, 2028 if contingency met; see also subsection (c) effective until contingency met, set out above.]

(c) Annually, each school district shall receive for support of education costs its educational opportunity payment determined pursuant to subsection 4010(f) of this chapter and a dollar amount equal to its supplemental district spending, if applicable to that school district, as defined in 32 V.S.A. § 5401.

(d) [Repealed.]

(e) [Repealed.]

[Subsection (f) effective until contingency met; see also subsection (f) effective July 1, 2028 if contingency met, set out below.]

(f) Annually, the Secretary shall pay to a local adult education and literacy provider, as defined in section 942 of this title, that provides an adult education and secondary credential program an amount equal to 26 percent of the base education amount for each student who completes the diagnostic portions of the adult education and secondary credential program, based on an average of the previous two completed fiscal years. Forty percent of the payment required under this subsection shall be from State funds appropriated from the Education Fund and 60 percent of the payment required under this subsection shall be from State funds appropriated from the General Fund.

[Subsection (f) effective July 1, 2028 if contingency met; see also subsection (f) effective until contingency met, set out above.]

(f) Annually, the Secretary shall pay to a local adult education and literacy provider, as defined in section 942 of this title, that provides an adult education and secondary credential program an amount equal to 26 percent of the categorical base amount for each student who completes the diagnostic portions of the adult education and secondary credential program, based on an average of the previous two completed fiscal years. Forty percent of the payment required under this subsection shall be from State funds appropriated from the Education Fund and 60 percent of the payment required under this subsection shall be from State funds appropriated from the General Fund.

(g) The Secretary shall pay to a school district a percentage of the base education amount for each resident student for whom the district is paying a technical tuition to a regional career technical center but who is not enrolled in the district and therefore not counted in the average daily membership of the district. The percentage of the base education amount to be paid shall be the percentage of the student’s full-time equivalent attendance at the career technical center multiplied by 87 percent.

(h) The Secretary shall make all payments required by subchapter 5 of chapter 23 of this title.

[Subsection (i) effective until contingency met; see also subsection (i) effective July 1, 2028 if contingency met, set out below.]

(i) Annually, on or before October 1, the Secretary shall send to school boards for inclusion in town reports and publish on the Agency website the following information:

(1) the statewide average district per pupil education spending for the current fiscal year; and

(2) a statewide comparison of student-teacher ratios among schools that are similar in number of students and number of grades.

[Subsection (i) effective July 1, 2028 if contingency met; see also subsection (i) effective until contingency met, set out above.]

(i) Annually, on or before October 1, the Secretary shall send to school boards for inclusion in town reports and publish on the Agency website a statewide comparison of student-teacher ratios among schools that are similar in number of students and number of grades.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), §§ 90, 117a, eff. March 11, 1998; 1999, No. 49, § 197; 1999, No. 108 (Adj. Sess.), § 3, eff. May 10, 2000; 2001, No. 8, § 16; 2001, No. 63, § 170b; 2003, No. 36, §§ 21, 22; 2003, No. 66, § 187b; 2003, No. 68, § 16, eff. June 18, 2003; 2003, No. 76 (Adj. Sess.), § 25, eff. Feb. 17, 2004; 2003, No. 122 (Adj. Sess.), § 174; 2003, No. 130 (Adj. Sess.), § 15; 2005, No. 54, § 16; 2005, No. 176 (Adj. Sess.), § 1; 2007, No. 66, § 9; 2009, No. 4, § 81, eff. April 24, 2009; 2009, No. 44, § 17, eff. May 21, 2009; 2013, No. 77, § 8; 2017, No. 49, § 29, eff. May 23, 2017; 2021, No. 127 (Adj. Sess.), § 25, eff. July 1, 2024; 2023, No. 113 (Adj. Sess.), § E.504.4, eff. July 1, 2024; 2025, No. 27, § E.504.2, eff. July 1, 2025; 2025, No. 73, § 36, contingently eff. July 1, 2028.)

§ 4011a Repealed

[Repealed]

2017, No. 49, § 31, effective May 23, 2017.

§ 4012 State-placed students

(a) A district that provides for the education of its students by paying tuition to an approved independent school or a public school outside the district shall receive from the Secretary an amount equal to the calculated net cost per pupil in the receiving school, as defined in section 825 of this title, prorated for the percentage of annual tuition billed for a State-placed student. If the calculated net cost per pupil in a receiving independent school or school located outside Vermont is not available, the Secretary shall pay the tuition charged. A district shall not receive funds under this section if all the student’s education costs are fully paid under subsection 2950(a) of this title.

(b) A school district shall request reimbursement under this section by submitting tuition bills and documentation of payment to the Secretary. The Secretary shall make reimbursement twice a year, once for requests submitted prior to January 1 and once for requests submitted prior to May 1. Requests submitted on or following May 1 shall be reimbursed in the next payment. The Secretary shall reconcile tuition overcharges in the year following payment to the school district pursuant to section 836 of this title. For the purpose of recovering any tuition overcharge, the Secretary shall be considered a receiving district.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 91, eff. March 11, 1998; 2013, No. 92 (Adj. Sess.), § 238, eff. Feb. 14, 2014.)

§ 4013 [Reserved for future use.]
§ 4013 English learners services; State aid

(a) Definitions. As used in this section:

(1) “Applicable federal laws” mean the Equal Education Opportunities Act (20 U.S.C. § 1703), Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.), and Titles I and III of the Elementary and Secondary Education Act of 1965 (20 U.S.C. §§ 6301 et seq. and 20 U.S.C. §§ 6801 et seq.), each as amended.

(2) “EL services” mean instructional and support personnel and services that are required under applicable federal laws for EL students and their families.

(3) “EL students” or “EL pupils” mean students who have been identified as English learners through the screening protocols required under 20 U.S.C. § 6823(b)(2).

(b) Required EL services. Each school district shall:

(1) screen students to determine which students are EL students and therefore qualify for EL services;

(2) assess and monitor the progress of EL students;

(3) provide EL services;

(4) budget sufficient resources through a combination of State and federal categorical aid and local education spending to provide EL services;

(5) report expenditures on EL services annually to the Agency of Education through the financial reporting system as required by the Agency; and

(6) evaluate the effectiveness of their EL programs and report educational outcomes of EL students as required by the Agency and applicable federal laws.

(c) Agency of Education support and quality assurance. The Agency of Education shall:

(1) provide guidance and program support to all school districts with EL students as required under applicable federal law, including:

(A) professional development resources for EL teachers and support personnel; and

(B) information on best practices and nationally recognized language development standards; and

(2) prescribe, collect, and analyze financial and student outcome data from school districts to ensure that districts are providing high-quality EL services and expending sufficient resources to provide these services.

[Subsection (d) repealed July 1, 2028 if contingency met.]

(d) Categorical aid. In addition to the EL weight under section 4010 of this title, a school district that has, as determined annually on October 1 of the year:

(1) one to five EL students enrolled shall receive State aid of $25,000.00 for that school year; or

(2) six to 25 EL students enrolled shall receive State aid of $50,000.00 for that school year.

(e) Annual appropriation. Annually, the General Assembly shall include in its appropriation for statewide education spending under subsection 4011(a) of this title an appropriation to provide aid to school districts for EL services under this section.

(f) Payment. On or before November 1 of each year, the State Treasurer shall withdraw from the Education Fund, based on warrant of the Commissioner of Finance and Management, and shall forward to each school district the aid amount it is owed under this section.

(Added 2021, No. 127 (Adj. Sess.), § 10, eff. July 1, 2024; amended 2025, No. 73, § 42(d), contingently eff. July 1, 2028.)

§ 4014 Early education

(a) The Secretary may grant funds for voluntary early education programs. The funds may be used for personnel costs, training of parents and staff, materials and educational equipment, and other costs related to early education programs.

(b) The Secretary shall solicit proposals for early education programs from community organizations serving young children. Community organizations include school districts; other public agencies, including Head Start programs; and private agencies, including child care programs and parent-child centers.

(c) The Secretary also shall investigate to determine those areas that are not served by early education programs and whose children are in greatest need of such services. In those areas, the Secretary shall provide assistance in preparing proposals for grants. In conducting the investigation, the Secretary shall collect and analyze demographic factors that are likely to predict unusual community needs for early education services. The Secretary shall distribute the results of the analysis to all interested persons.

(d) The Secretary shall evaluate proposals based on the following criteria:

(1) The program will serve additional children with special needs, such as those who are economically disadvantaged, those who have limited English language skills, those who have a disability, or those who have experienced or are at risk of abuse or neglect.

(2) The program will rely on early screening of children’s development to determine need.

(3) The program will provide experiential learning activities that are developmentally appropriate for three- and four-year old children. Such activities may be provided in home or group settings or a combination of the two.

(4) The program will include active parental involvement in program design and in making decisions about services.

(5) The program has been cooperatively developed by community and school organizations that serve young children in a town or group of towns.

(6) There is a demonstrated need for the program.

(7) The program considers the transportation needs of children and parents.

(8) The program enables children with disabilities to be served in settings with peers who do not have a disability.

(9) The program includes voluntary training for parents.

(e) The Secretary shall give preference to programs to be offered in parts of the State that do not have early education services at the time of the application.

(f) Grant proposals shall be submitted to the Secretary. Grants shall be for one year but may be renewed. No grant may exceed $30,000.00. The Secretary may, in his or her discretion, set other terms of the grant.

(Added 1987, No. 68, § 3; amended 2011, No. 58, § 6, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 239, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 81; 2021, No. 20, § 70.)

§ 4015 Merger support for merged districts [Repealed July 1, 2028 if contingency met]

(a) A school district that was voluntarily formed under 2010 Acts and Resolves No. 153, 2012 Acts and Resolves No. 156, or 2015 Acts and Resolves No. 46, each as amended, and received a merger support grant shall continue to receive that merger support grant, subject to the provisions in subsection (c) of this section.

(b) A school district that was involuntarily formed under the Final Report of Decisions and Order on Statewide School District Merger Decisions Pursuant to Act 46, Secs. 8(b) and 10 dated November 28, 2018 and that received a small schools grant in fiscal year 2020 shall receive an annual merger support grant in that amount, subject to the provisions in subsection (c) of this section.

(c)(1) Payment of a merger support grant under this section shall not be made in any year that the school district receives a small school weight under section 4010 of this title.

(2) Payment of a merger support grant under this section shall continue annually unless explicitly repealed by the General Assembly; provided, however, that the Secretary shall discontinue payment of the grant in the fiscal year following the cessation of operations of the school that made the district originally eligible for the grant, and further provided that if the building that houses the school that made the district originally eligible for the grant is consolidated with another school into a renovated or new school building, then the Secretary shall continue to pay the grant during the repayment term of any bonded indebtedness incurred in connection with the consolidation-related renovation or construction.

(Added 1997, No. 71 (Adj. Sess.), § 92, eff. March 11, 1998; amended 1999, No. 49, § 3, eff. June 2, 1999; 1999, No. 66 (Adj. Sess.), § 39, eff. Feb. 8, 2000; 2003, No. 68, § 23, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), § 27, eff. Feb. 17, 2004; 2007, No. 82, § 28; 2009, No. 44, § 19, eff. May 21, 2009; 2011, No. 129 (Adj. Sess.), § 7, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 240, eff. Feb. 14, 2014; 2015, No. 48, § 6; 2015, No. 46, § 20, eff. July 1, 2019; 2021, No. 73, § 20, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 26, eff. July 1, 2024.)

§ 4015 Merger support for merged districts [Repealed effective July 1, 2028]

(Added 1997, No. 71 (Adj. Sess.), § 92, eff. March 11, 1998; amended 1999, No. 49, § 3, eff. June 2, 1999; 1999, No. 66 (Adj. Sess.), § 39, eff. Feb. 8, 2000; 2003, No. 68, § 23, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), § 27, eff. Feb. 17, 2004; 2007, No. 82, § 28; 2009, No. 44, § 19, eff. May 21, 2009; 2011, No. 129 (Adj. Sess.), § 7, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 240, eff. Feb. 14, 2014; 2015, No. 48, § 6; 2015, No. 46, § 20, eff. July 1, 2019; 2021, No. 73, § 20, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 26, eff. July 1, 2024; contingently repealed on July 1, 2028 by 2025, No. 73, § 42(e).)

§ 4016 Reimbursement for transportation expenditures

(a) A school district or supervisory union that incurs allowable transportation expenditures shall receive a transportation reimbursement grant each year. The grant shall be equal to 50 percent of allowable transportation expenditures; provided, however, that in any year the total amount of grants under this subsection shall not exceed the total amount of adjusted base year transportation grant expenditures. The total amount of base year transportation grant expenditures shall be $10,000,000.00 for fiscal year 1997, increased each year thereafter by the annual price index for state and local government purchases of goods and services. If in any year the total amount of the grants under this subsection exceed the adjusted base year transportation grant expenditures, the amount of each grant awarded shall be reduced proportionately. Transportation grants paid under this section shall be paid from the Education Fund and shall be added to education spending payment receipts paid under section 4011 of this title.

(b) In this section, “allowable transportation expenditures” means the costs of transporting students to and from school for regular classroom services and shall not include expenditures for transporting students participating in curricular activities that take place off the school grounds or for transporting students participating in cocurricular activities. The State Board shall further define allowable transportation expenditures by rule.

(c) A district or supervisory union may apply and the Secretary may pay for extraordinary transportation expenditures incurred due to geographic or other conditions such as the need to transport students out of the school district to attend another school because the district does not maintain a public school. The State Board shall define extraordinary transportation expenditures by rule. The total amount of base year extraordinary transportation grant expenditures shall be $250,000.00 for fiscal year 1997, increased each year thereafter by the annual price index for state and local government purchases of goods and services. Extraordinary transportation expenditures shall not be paid out of the funds appropriated under subsection (b) of this section for other transportation expenditures. Grants paid under this section shall be paid from the Education Fund and shall be added to education spending payment receipts paid under section 4011 of this title.

(Added 2003, No. 107 (Adj. Sess.), § 12; amended 2013, No. 92 (Adj. Sess.), § 241, eff. Feb. 14, 2014; 2023, No. 183 (Adj. Sess.), § 22, eff. July 1, 2024.)

§ 4017 Universal meals supplement

(a) Definition. For the purpose of this section, “universal meals supplement” has the same meaning as that term has in subdivision 1261a(5) of this title.

(b) Public schools. From State funds appropriated to the Agency from the Education Fund for the universal meals supplement, the Agency shall provide a universal meals supplement for the cost of each meal actually provided to each student in the district during the previous quarter when meals are offered to all students at no charge pursuant to subdivision 1264(a)(1)(B) of this title.

(1) Reimbursement from State funds shall be available only to districts that maximize access to federal funds for the cost of the school breakfast and lunch program by participating in the Community Eligibility Provision, under 7 C.F.R. § 245.9(f), or Provision 2, under 7 C.F.R. § 245.9(b), of these programs, or any other federal provision that in the opinion of the Agency draws down the most possible federal funding for meals served in that program. At the start of each school year, the Agency of Education may require that a school food authority requesting the universal meals supplement begin a new cycle of the relevant federal provision and group sites in a manner the Agency determines will maximize the drawdown of federal funds.

(2) Second breakfasts, as allowed under 7 C.F.R. § 220.9(a), do not qualify for reimbursement under this subsection.

(3) A nonprofit prequalified private prekindergarten provider that is qualified pursuant to subsection 829(c) of this title and is not also an approved or recognized independent school is eligible for the universal meals supplement under this subsection if it operates a food program under a public school school food authority.

(c) Approved independent schools.

(1) From State funds appropriated to the Agency from the Education Fund for the universal meals supplement, the Agency shall provide a universal meals supplement for the cost of each meal actually provided to each qualifying student on public tuition when meals are offered to all students at no charge pursuant to subdivision 1264(a)(1)(B) of this title, provided that:

(A) If the approved independent school participates in the food programs as a site under a public school school food authority, the public school school food authority shall be reimbursed only for students attending the approved independent school on public tuition.

(B) If the approved independent school participates in the Community Eligibility Provision under 7 C.F.R. § 245.9(f), or is in a year other than the base year of Provision 2 under 7 C.F.R. § 245.9(b), the school shall provide the Agency with the number of students attending the school on public tuition and the total number of students enrolled in the school. The Agency shall calculate the percentage of students attending the school on public tuition and multiply that number by the paid student percentage, the results of which shall be the number of meals the school shall be reimbursed for.

(2) Second breakfasts, as allowed under 7 C.F.R. § 220.9(a), do not qualify for reimbursement under this subsection.

(3) Students attending an approved independent school on public tuition shall include a prekindergarten child if the approved independent school also qualifies as a prequalified private provider and the child’s school district of residence pays tuition to the school pursuant to section 829 of this title.

(4) An approved independent school is eligible for the universal meals supplement only if it operates a food program that makes available a school lunch, as provided in the National School Lunch Act as amended, and a school breakfast, as provided in the Child Nutrition Act as amended, to each attending student who qualifies for those meals under these acts every school day.

(5) Reimbursement from State funds shall be available only to approved independent schools that maximize access to federal funds for the cost of the school breakfast and lunch program by participating in the Community Eligibility Provision under 7 C.F.R. § 245.9(f), or Provision 2 under 7 C.F.R. § 245.9(b), of these programs, or any other federal provision that in the opinion of the Agency draws down the most possible federal funding for meals served in that program. At the start of each school year, the Agency of Education may require that a school food authority requesting the universal meals supplement begin a new cycle of the relevant federal provision and group sites in a manner the Agency determines will maximize the drawdown of federal funds.

(d) Universal meals supplement. The universal meals supplement amount for breakfast shall be a sum equal to the federal reimbursement rate for a free school breakfast less the federal reimbursement rate for a paid school breakfast, using rates identified annually by the Agency of Education from payment levels established annually by the U.S. Department of Agriculture. The universal meals supplement amount for lunch shall be a sum equal to the federal reimbursement rate for a free school lunch less the federal reimbursement rate for a paid school lunch, using rates identified annually by the Agency of Education from payment levels established annually by the U.S. Department of Agriculture.

(Added 2023, No. 64, § 3, eff. July 1, 2023.)

§ 4018 Repealed

[Repealed]

(Added 2023, No. 78, § E.500.1, eff. July 1, 2023.)

§ 4019 Small schools; sparse schools; support grants [Effective July 1, 2028 if contingency met]

(a) Definitions. As used in this section:

(1) “Enrollment” means the number of students who are enrolled in a school operated by the school district on October 1. A student shall be counted as one whether the student is enrolled as a full-time or part-time student.

(2) “Small school” means a school that:

(A) has fewer than 100 pupils in two-year average enrollment; and

(B) has been determined by the State Board of Education, on an annual basis, to be “small by necessity” under standards consistent with those submitted to the General Assembly pursuant to 2025 Acts and Resolves No. 73, Sec. 8(b).

(3) “Sparse area” means a city, town, or incorporated village where the number of persons per square mile residing within the land area of the geographic boundaries of the city, town, or incorporated village as of July 1 of the year of determination is fewer than 55 persons.

(4) “Sparse school” means a school that:

(A) is within a sparse area; and

(B) has been determined by the State Board of Education, on an annual basis, to be “sparse by necessity” under standards consistent with those submitted to the General Assembly pursuant to 2025 Acts and Resolves No. 73, Sec. 8(b).

(5) “Two-year average enrollment” means the average enrollment of the two most recently completed school years.

(b) Small schools support grant. Annually, the Secretary shall pay a small schools support grant to each school district for each small school within the school district in an amount determined by multiplying the two-year average enrollment in the small school by $3,157.00.

(c) Sparse schools support grant. Annually, the Secretary shall pay a sparse schools support grant to each school district for each sparse school within the school district in an amount determined by multiplying the two-year average enrollment in the sparse school by $1,954.00.

(d) Inflationary adjustment. Each dollar amount under subsections (b) and (c) of this section shall be adjusted for inflation annually on or before November 15 by the Secretary. As used in this subsection, “adjusted for inflation” means adjusting the dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.

(Added 2025, No. 73, § 37, contingently eff. July 1, 2028.)

§ 4025 Education Fund

(a) The Education Fund is established to comprise the following:

(1) all revenue paid to the State from the statewide education tax on nonhomestead and homestead property under 32 V.S.A. chapter 135;

[Subdivision (a)(2) effective until contingency met; see also subdivision (a)(2) effective July 1, 2028 if contingency met, set out below.]

(2) [Repealed.]

[Subdivision (a)(2) effective July 1, 2028 if contingency met; see also subdivision (a)(2) effective until contingency met, set out above.]

(2) all revenue paid to the State from the supplemental district spending tax imposed pursuant to 32 V.S.A. § 5402(f);

(3) revenues from State lotteries under 31 V.S.A. chapter 14 and from any multijurisdictional lottery game authorized under that chapter;

(4) 25 percent of the revenues from the meals and rooms taxes imposed under 32 V.S.A. chapter 225;

(5) one-third of the revenues raised from the purchase and use tax imposed by 32 V.S.A. chapter 219, notwithstanding 19 V.S.A. § 11(1);

(6) revenues raised from the sales and use tax imposed by 32 V.S.A. chapter 233;

(7) Medicaid reimbursement funds pursuant to subsection 2959a(f) of this title.

(8) land use change tax revenue deposited pursuant to 32 V.S.A. § 3757(d);

(9) uniform capacity tax revenue deposited pursuant to 32 V.S.A. § 8701(b)(3);

(10) wind-powered electric generating facilities tax deposited pursuant to 32 V.S.A. § 5402c; and

(11) revenues from the short-term rental surcharge under 32 V.S.A. § 9301.

(b) Monies in the Education Fund shall be used for the following:

(1) To make payments to school districts and supervisory unions for the support of education in accordance with the provisions of section 4028 of this title, other provisions of this chapter, the provisions of 32 V.S.A. chapter 135, and the Flexible Pathways Initiative established by section 941 of this title, but excluding adult education and literacy programs under section 945 of this title.

(2) To cover the cost of fund auditing, accounting, revenue collection, and of short-term borrowing to meet fund cash flow requirements.

[Subdivision (b)(3) effective until contingency met; see also subdivision (b)(3) effective July 1, 2028 if contingency met, set out below.]

(3) To make payments required under 32 V.S.A. § 6066(a)(1) and only that portion attributable to education taxes, as determined by the Commissioner of Taxes, of payments required under 32 V.S.A. § 6066(a)(3). The State Treasurer shall withdraw funds from the Education Fund upon warrants issued by the Commissioner of Finance and Management based on information supplied by the Commissioner of Taxes. The Commissioner of Finance and Management may draw warrants for disbursements from the Fund in anticipation of receipts. All balances in the Fund at the end of any fiscal year shall be carried forward and remain a part of the Fund. Interest accruing from the Fund shall remain in the Fund.

[Subdivision (b)(3) effective July 1, 2028 if contingency met; see also subdivision (b)(3) effective until contingency met, set out above.]

(3) The State Treasurer shall withdraw funds from the Education Fund upon warrants issued by the Commissioner of Finance and Management based on information supplied by the Commissioner of Taxes. The Commissioner of Finance and Management may draw warrants for disbursements from the Fund in anticipation of receipts. All balances in the Fund at the end of any fiscal year shall be carried forward and remain a part of the Fund. Interest accruing from the Fund shall remain in the Fund.

(4) To make payments to the Vermont Teachers’ Retirement Fund and the Retired Teachers’ Health and Medical Benefits Fund for the normal contributions in accordance with subsections 1944(c) and 1994b(h) of this title.

(5) To make payments for contracted services to support statewide administrative education systems, including the costs of the statewide school finance and financial management data system to complete the reporting required by subdivision 242(4) of this title and pursuant to 2018 (Sp. Sess.) Acts and Resolves No. 11, Sec. E.500.1.

(c) [Repealed.]

(d) Upon withdrawal of funds from the Education Fund for any purpose other than those authorized by this section, 32 V.S.A. chapter 135 (education property tax) is repealed.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 4, eff. March 11, 1998, § 68; 1997, No. 147 (Adj. Sess.), § 159(a); 1999, No. 1, § 102, eff. March 31, 1999; 1999, No. 62, § 127; 1999, No. 66 (Adj. Sess.), § 52, eff. Feb. 8, 2000; 1999, No. 152 (Adj. Sess.), § 166b; 2001, No. 63, § 277; 2001, No. 102 (Adj. Sess.), § 35a, eff. May 15, 2002; 2003, No. 19, § 50, eff. May 6, 2003; 2003, No. 68, § 36, eff. July 1, 2004; 2005, No. 38, § 4a, eff. June 2, 2005; 2005, No. 215 (Adj. Sess.), § 285; 2007, No. 65, § 184; 2009, No. 1 (Sp. Sess.), § E.513.1, eff. June 2, 2009; 2009, No. 67 (Adj. Sess.), § 63, eff. Feb. 25, 2010; 2009, No. 156 (Adj. Sess.), § E.139; 2011, No. 63, § E.513.1, eff. July 1, 2012; 2011, No. 63, § E.513.2; 2011, No. 143 (Adj. Sess.), § 56, eff. July 1, 2013; 2013, No. 179 (Adj. Sess.), § E.513.1; 2015, No. 48, § 7; 2015, No. 172 (Adj. Sess.), § E.513; 2017, No. 85, § E.500.2; 2017, No. 85, § H.3, eff. July 1, 2018; 2018, No. 11 (Sp. Sess.), § H.8; 2019, No. 72, § E.500.1; 2019, No. 88 (Adj. Sess.), § 66, eff. March 4, 2020; 2021, No. 114 (Adj. Sess.), § 25, eff. July 1, 2022; 2023, No. 87 (Adj. Sess.), § 74, eff. July 1, 2023; 2023, No. 183 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 73, § 38, contingently eff. July 1, 2028.)

§ 4026 Education Fund budget stabilization reserve; creation and purpose [Effective until contingency met; see also 16 V.S.A. § 4026 effective July 1, 2028 if contingency met, set out below]

(a) It is the purpose of this section to reduce the effects of annual variations in State revenues upon the Education Fund budget of the State by reserving certain surpluses in Education Fund revenues that may accrue for the purpose of offsetting deficits.

(b) There is hereby created an Education Fund budget stabilization reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated Education Fund surplus occurring at the close of a fiscal year shall be reserved within the Education Fund budget stabilization reserve, provided that the balance reserved shall not exceed five percent of the prior fiscal year education fund appropriations, reduced by the amount distributed to school districts by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated Education Fund surplus and accrued interest remaining after the Education Fund budget stabilization reserve has been brought to the maximum authorized level shall remain in the Education Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated Education Fund surplus for increased support for education.

(c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit, the Education Fund budget stabilization reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated fund deficit as determined by generally accepted accounting principles.

(d) Determination of the amount of the undesignated Education Fund surplus or fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.

(e) The enactment of this chapter and other provisions of the Equal Educational Opportunity Act of which it is a part have been premised upon estimates of balances of revenues to be raised and expenditures to be made under the act for such purposes as education spending payments, categorical State support grants, provisions for property tax income sensitivity, payments in lieu of taxes, current use value appraisals, tax stabilization agreements, the stabilization reserve established by this section, and for other purposes. If the stabilization reserve established under this section should in any fiscal year be less than 5.0 percent of the prior fiscal year’s appropriations from the Education Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore the stabilization reserve to the statutory level provided in subsection (b) of this section.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024.)

§ 4026 Education Fund budget stabilization reserve [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 4026 effective until contingency met, set out above]

(a) It is the purpose of this section to reduce the effects of annual variations in State revenues upon the Education Fund budget of the State by reserving certain surpluses in Education Fund revenues that may accrue for the purpose of offsetting deficits.

(b) There is hereby created an Education Fund budget stabilization reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated Education Fund surplus occurring at the close of a fiscal year shall be reserved within the Education Fund budget stabilization reserve, provided that the balance reserved shall not exceed five percent of the prior fiscal year education fund appropriations, reduced by the amount distributed to school districts by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated Education Fund surplus and accrued interest remaining after the Education Fund budget stabilization reserve has been brought to the maximum authorized level shall remain in the Education Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated Education Fund surplus for increased support for education.

(c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit, the Education Fund budget stabilization reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated fund deficit as determined by generally accepted accounting principles.

(d) Determination of the amount of the undesignated Education Fund surplus or fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.

(e) If the stabilization reserve established under this section should in any fiscal year be less than 5.0 percent of the prior fiscal year’s appropriations from the Education Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore the stabilization reserve to the statutory level provided in subsection (b) of this section.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024; 2025, No. 73, § 39, contingently eff. July 1, 2028.)

§ 4027 Education Fund transfer amounts

(a) [Repealed.]

(b) Annually, on or before June 1, each superintendent shall report to the Agency, on a form prescribed by the Secretary, each education budget that was adopted by May 1 for the following fiscal year by the member districts of the supervisory union and for which no petition for reconsideration has been filed. A superintendent shall report a budget adopted following May 1, to the Agency, between 30 to 40 days following adoption or, if a petition for reconsideration has been filed, within 10 days of final adoption of the budget.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), §§ 5, 95, eff. March 11, 1998; 1999, No. 49, § 20, eff. June 2, 1999; 1999, No. 62, § 174a; 1999, No. 108 (Adj. Sess.), § 4, eff. May 10, 2000; 1999, No. 152 (Adj. Sess.), § 166a; 2001, No. 63, § 165a, eff. June 16, 2001; 2003, No. 68, § 19, eff. June 18, 2003; 2003, No. 107 (Adj. Sess.), § 21; 2003, No. 122 (Adj. Sess.), § 294w; 2013, No. 92 (Adj. Sess.), § 242, eff. Feb. 14, 2014.)

§ 4028 Fund payments to school districts

[Subsection (a) effective until contingency met; see also subsection (a) effective July 1, 2028 if contingency met, set out below.]

(a) On or before September 10, December 10, and April 30 of each school year, one-third of the education spending payment under section 4011 of this title shall become due to school districts, except that districts that have not adopted a budget by 30 days before the date of payment under this subsection shall receive one-quarter of the base education amount and upon adoption of a budget shall receive additional amounts due under this subsection.

[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a) effective until contingency met, set out above.]

(a) On or before September 10, December 10, and April 30 of each school year, one-third of each school district’s educational opportunity payment as determined under subsection 4010(f) of this chapter and supplemental district spending, as defined in 32 V.S.A. § 5401, shall become due to school districts.

(b) Payments made for special education under chapter 101 of this title, for career technical education under chapter 37 of this title, and for other aid and categorical grants paid for support of education shall also be from the Education Fund.

[Subsection (c) repealed July 1, 2028 if contingency met.]

(c)(1) Any district that has adopted a school budget that includes high spending, as defined in 32 V.S.A. § 5401(12), shall, upon timely notice, be authorized to use a portion of its high spending penalty to reduce future education spending:

(A) by entering into a contract with an operational efficiency consultant or a financial systems consultant to examine issues such as transportation arrangements, administrative costs, staffing patterns, and the potential for collaboration with other districts;

(B) by entering into a contract with an energy or facilities management consultant; or

(C) by engaging in discussions with other school districts about reorganization or consolidation for better service delivery at a lower cost.

(2) To the extent approved by the Secretary, the Agency shall pay the district from the property tax revenue to be generated by the high spending increase to the district’s spending adjustment as estimated by the Secretary, up to a maximum of $5,000.00. For the purposes of this subsection, “timely notice” means written notice from the district to the Secretary by September 30 of the budget year. If the district enters into a contract with a consultant pursuant to this subsection, the consultant shall not be an employee of the district or of the Agency. A copy of the consultant’s final recommendations or a copy of the district’s recommendations regarding reorganization, as appropriate, shall be submitted to the Secretary, and each affected town shall include in its next town report an executive summary of the consultant’s or district’s final recommendations and notice of where a complete copy is available. No district is authorized to obtain funds under this section more than one time in every five years.

(d) The Joint Fiscal Office shall prepare a fiscal note for any legislation that requires a supervisory union or school district to perform any action with an associated cost, but does not provide money or a funding mechanism for fulfilling that obligation. Any fiscal note prepared under this subsection shall be completed not later than the date that the legislation is considered for a vote in the first committee to which it is referred.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 70, eff. July 1, 1999; 1997, No. 71 (Adj. Sess.),§ 118, eff. March 11, 1998; 1997, No. 147 (Adj. Sess.), § 159(b); 1999, No. 152 (Adj. Sess.), § 166b; 2003, No. 68, § 20, eff. June 18, 2003; 2005, No. 38, § 10, eff. June 2, 2005; 2007, No. 66, § 10; 2009, No. 44, § 19, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 243, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 68, eff. June 4, 2014; 2015, No. 23, § 41; 2021, No. 20, § 71; 2023, No. 183 (Adj. Sess.), § 24, eff. July 1, 2024; 2025, No. 73, § 40, contingently eff. July 1, 2028.)

§ 4029 Use of funds for education

(a) Funds received by a school district may be used only for legitimate items of current education expense and shall not be used for municipal services.

(b) Funds received by a municipality other than a school district may not be used directly or indirectly for education expenses.

(c) If the Secretary determines that a school district has spent funds paid under section 4028 of this title for an item that is not a legitimate item of current education expense, the treasurer of the municipality shall, within 90 days, remit the amount of the expenditure to the Education Fund. The treasurer shall use funds raised pursuant to 17 V.S.A. § 2664, 20 V.S.A. § 2601, or 24 V.S.A. § 1309 for this purpose. If the Secretary determines that a municipality other than a school district has spent funds for an item that is a legitimate item of current education expense, the treasurer of the municipality shall transfer the amount of the expenditure from the local education fund to the municipal fund.

(d) The legislative body of a school district or other municipality may appeal a decision of the Secretary under this section to the State Board, which shall hear the appeal de novo in the manner provided by 3 V.S.A. chapter 25 for the hearing of contested cases. A legislative body of a school district or other municipality may appeal a decision of the State Board to the Superior Court of the district in which the municipality is located. The Superior Court shall hear the matter de novo in the manner provided by Rule 74 of the Vermont Rules of Civil Procedure. An appeal from the decision of the Superior Court shall be to the Supreme Court under the Vermont Rules of Appellate Procedure.

(e) For the purposes of this section, notwithstanding any provision of municipal law to the contrary, “legitimate items of current educational expense” may include reasonable payments to a municipality for services performed on behalf of a school district by its corresponding town or city clerk, the town or city treasurer, or the town or city auditors.

(f) Annually, on a form prescribed by the Secretary, each school district shall report for the previous school year the amount it paid to or received from its corresponding municipality or municipal officials, including any payments made pursuant to subsection (e) of this section, and any property or in-kind services it donated to or received from its corresponding municipality.

(g) Notwithstanding anything to the contrary in this section or otherwise in law, a school district and the town or city municipality or municipalities in which the school district operates may jointly fund the services of one or more cultural liaisons to support students and families who have limited English proficiency (LEP). A cultural liaison provides language translation and interpretation services to help facilitate educational and municipal services for LEP students and families; facilitates communication among school and municipal staff, LEP students and families, and community organizations; and assists in reconciling differing cultural perspectives and understandings.

(Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 21, eff. June 2, 1999; 2003, No. 68, § 22, eff. June 18, 2003; 2013, No. 92 (Adj. Sess.), § 244, eff. Feb. 14, 2014; 2021, No. 66, § 8, eff. June 7, 2021.)

§ 4030 Data submission; corrections

(a) Upon discovering an error or change in data submitted to the Secretary for the purpose of determining payments to or from the Education Fund, a school district shall report the error or change to the Secretary as soon as possible. Any budget deficit or surplus due to the error or change shall be carried forward to the following year.

(b) The Secretary shall use data submitted on or before January 15 prior to the fiscal year that begins the following July 1 in order to calculate the amounts due each school district for any fiscal year for transportation aid due under section 4016 of this title.

(c) The Secretary shall use data corrections regarding local education budget amounts submitted on or before June 15 prior to the fiscal year that begins the following July 1, in order to calculate the education payments due under section 4011 of this title. However, the Secretary may use data submitted after June 15 and prior to July 15 due to unusual or exceptional circumstances as determined by the Secretary.

(d) The Secretary shall not use data corrected due to an error submitted following the deadlines to recalculate weighted long-term membership under section 4010 of this title. The Secretary shall not adjust average daily membership counts if an error or change is reported more than three fiscal years following the date that the original data was due.

(e) The State Board may adopt rules as necessary to implement the provisions of this section.

(Added 1999, No. 108 (Adj. Sess.), § 5, eff. May 10, 2000; amended 2003, No. 36, § 18; 2003, No. 68, § 27, eff. June 18, 2003; 2003, No. 107 (Adj. Sess.), § 13; 2011, No. 58, § 7; 2013, No. 92 (Adj. Sess.), § 245, eff. Feb. 14, 2014; 2021, No. 127 (Adj. Sess.), § 27, eff. July 1, 2024.)

§ 4031 Unorganized towns and gores [Repealed July 1, 2028 if contingency met]

(a) For a municipality that, as of January 1, 2004, is an unorganized town or gore, its education property tax spending adjustment under 32 V.S.A. § 5401(13) shall be one for purposes of determining the tax rate under 32 V.S.A. § 5402(a)(2).

(b) For purposes of a claim for property tax credit under 32 V.S.A. chapter 154 by a taxpayer in a municipality affected under this section, the applicable percentage shall not be multiplied by a spending adjustment under 32 V.S.A. § 5401(13).

(Added 2003, No. 36, § 23; 2003, No. 68, § 17, eff. July 1, 2004; amended 2003, No. 76 (Adj. Sess.), § 21, eff. Feb. 17, 2004; 2015, No. 46, § 31.)

§ 4031 Unorganized towns and gores [Repealed effective July 1, 2028]

(Added 2003, No. 36, § 23; 2003, No. 68, § 17, eff. July 1, 2004; amended 2003, No. 76 (Adj. Sess.), § 21, eff. Feb. 17, 2004; 2015, No. 46, § 31; contingently repealed on July 1, 2028 by 2025, No. 73, § 42(a).)

§ 4032 Supplemental District Spending Reserve [Effective July 1, 2028 if contingency met]

(a) There is hereby created the Supplemental District Spending Reserve within the Education Fund. Any recapture, as defined in 32 V.S.A. § 5401, paid to the Education Fund as part of the revenue from the supplemental district spending tax imposed pursuant to 32 V.S.A. § 5402(f) shall be reserved within the Supplemental District Spending Reserve.

(b) In any fiscal year in which the amounts raised through the supplemental district spending tax imposed pursuant to 32 V.S.A. § 5402(f) are insufficient to cover payment to each school district of its supplemental district spending, the Supplemental District Spending Reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the deficit as determined by generally accepted accounting principles.

(c) Any funds remaining in the Supplemental District Spending Reserve at the close of the fiscal year after accounting for the process under subsection (b) of this section shall be unreserved in the Education Fund for the purpose of decreasing the following year’s statewide education property tax rate.

(Added 2025, No. 73, § 43, contingently eff. July 1, 2028.)

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