title-24•Title 24 — Municipal and County Government
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Chapter 1 Division of State into Counties
§ 1 Counties in State
The State is divided into the counties of Addison, Bennington, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Washington, Windham, and Windsor.
§ 2 Addison
The County of Addison is formed of the towns of Addison, Bridport, Bristol, Cornwall, Ferrisburgh, Goshen, Granville, Hancock, Leicester, Lincoln, Middlebury, Monkton, New Haven, Orwell, Panton, Ripton, Salisbury, Shoreham, Starksboro, Waltham, Weybridge, Whiting, the City of Vergennes, and so much of Lake Champlain as lies in this State west of the towns in the county adjoining the lake. Middlebury is the shire town.
§ 3 Bennington
The County of Bennington is formed of the towns of Arlington, Bennington, Dorset, Landgrove, Manchester, Peru, Pownal, Readsboro, Rupert, Sandgate, Searsburg, Shaftsbury, Stamford, Sunderland, Winhall, Woodford, and the unorganized township of Glastenbury. Bennington and Manchester are the shire towns.
§ 4 Caledonia
The County of Caledonia is formed of the towns of Barnet, Burke, Danville, Groton, Hardwick, Kirby, Lyndon, Newark, Peacham, Ryegate, St. Johnsbury, Sheffield, Stannard, Sutton, Walden, Waterford, and Wheelock. St. Johnsbury is the shire town.
§ 5 Chittenden
The County of Chittenden is formed of the towns of Bolton, Charlotte, Colchester, Essex, Hinesburg, Huntington, Jericho, Milton, Richmond, St. George, Shelburne, the City of South Burlington, Underhill, Westford, Williston, the City of Burlington, the City of Essex Junction, the City of Winooski, Buel’s Gore, and so much of Lake Champlain as lies in this State west of the towns in the county adjoining the lake and not included within the limits of the County of Grand Isle. The City of Burlington is the shire town.
(Amended 1981, No. 239 (Adj. Sess.), § 26; 2021, No. 105 (Adj. Sess.), § 432a, eff. July 1, 2022.)
§ 6 Essex
The County of Essex is formed of the towns of Bloomfield, Brighton, Brunswick, Canaan, Concord, East Haven, Granby, Guildhall, Lemington, Lunenburg, Maidstone, Norton, Victory, Avery’s Gore, Warner’s Grant, Warren Gore, and the unorganized townships of Averill, Ferdinand, and Lewis. Guildhall is the shire town.
§ 7 Franklin
The County of Franklin is formed of the towns of Bakersfield, Berkshire, Enosburgh, Fairfax, Fairfield, Fletcher, Franklin, Georgia, Highgate, Montgomery, Richford, St. Albans, Sheldon, Swanton, the City of St. Albans, and that part of Lake Champlain and the islands lying west of the towns in the County adjoining the Lake and not included within the limits of the County of Grand Isle, but including Wood’s Island. The City of St. Albans is the shire town.
§ 8 Grand Isle
The County of Grand Isle is formed of the towns of Alburgh, Grand Isle, Isle La Motte, North Hero, and South Hero and is bounded as follows: beginning at the northwest corner of this State; thence running easterly on the north line of the State to the middle of the waters of Missisquoi Bay; thence through the middle of the waters of such bay, to a point equidistant from the north point of North Hero and the south point of Hog Island; thence southerly, as near as may be, through the center of the waters of Maquam Bay, but so far east as to include Butler’s Island, Knight’s Island, and Savage’s Island; thence southerly, through the waters of Lake Champlain, to a point equidistant from the south point of South Hero in the County of Grand Isle and Colchester Point in the County of Chittenden; thence westerly to the west line of this State; thence northerly on such line to the place of beginning. North Hero is the shire town.
§ 9 Lamoille
The County of Lamoille is formed of the towns of Belvidere, Cambridge, Eden, Elmore, Hyde Park, Johnson, Morristown, Stowe, Waterville, and Wolcott. Hyde Park is the shire town.
§ 10 Orange
The County of Orange is formed of the towns of Bradford, Braintree, Brookfield, Chelsea, Corinth, Fairlee, Newbury, Orange, Randolph, Strafford, Thetford, Topsham, Tunbridge, Vershire, Washington, West Fairlee, and Williamstown. Chelsea is the shire town.
§ 11 Orleans
The County of Orleans is formed of the towns of Albany, Barton, Brownington, Charleston, Coventry, Craftsbury, Derby, Glover, Greensboro, Holland, Irasburg, Jay, Lowell, Morgan, Newport, Troy, Westfield, and Westmore and the City of Newport. The City of Newport is the shire town.
§ 12 Rutland
The County of Rutland is formed of the towns of Benson, Brandon, Castleton, Clarendon, Chittenden, Danby, Fair Haven, Hubbardton, Ira, Killington, Mendon, Middletown Springs, Mount Holly, Mount Tabor, Pawlet, Pittsfield, Pittsford, Poultney, Proctor, Rutland, Shrewsbury, Sudbury, Tinmouth, Wallingford, Wells, West Haven, West Rutland, the City of Rutland, and so much of Lake Champlain as lies in this State west of the towns in the county adjoining the lake. The City of Rutland is the shire town.
(Amended 1999, Municipal Act No. M-3, § 3.)
§ 13 Washington
The County of Washington is formed of the towns of Barre, Berlin, Cabot, Calais, Duxbury, East Montpelier, Fayston, Marshfield, Middlesex, Moretown, Northfield, Plainfield, Roxbury, Waitsfield, Warren, Waterbury, Woodbury, Worcester, and the cities of Barre and of Montpelier. The City of Montpelier is the shire town.
§ 14 Windham
The County of Windham is formed of the towns of Athens, Brattleboro, Brookline, Dover, Dummerston, Grafton, Guilford, Halifax, Jamaica, Londonderry, Marlboro, Newfane, Putney, Rockingham, Stratton, Townshend, Vernon, Wardsboro, Westminster, Whitingham, Wilmington, Windham, and the unorganized township of Somerset. Newfane is the shire town.
§ 15 Windsor
The County of Windsor is formed of the towns of Andover, Baltimore, Barnard, Bethel, Bridgewater, Cavendish, Chester, Hartford, Hartland, Ludlow, Norwich, Plymouth, Pomfret, Reading, Rochester, Royalton, Sharon, Springfield, Stockbridge, Weathersfield, Weston, West Windsor, Windsor, and Woodstock. Woodstock is the shire town.
Chapter 3 Property and Equipment
Subchapter 1 County Buildings and Lands
§ 71 Repealed
[Repealed]
1993, No. 233 (Adj. Sess.), § 45a, eff. June 21, 1994.
§ 71a Courthouses
(a) Except as provided herein, each county shall provide and own a suitable courthouse, pay all utility and custodial services, and keep such courthouse suitably furnished and equipped for use by the Superior Court, together with suitable offices for the county clerk, assistant judges, and Probate judges. Office space for the Probate Division of the Superior Court may be provided elsewhere by the county. The county shall provide at least the facilities for judicial operations that it provided on July 1, 2009.
(b) If all judicial operations in a county are contained in one court building owned by the State, the county clerk and assistant judges may also be located in the same building. The Court Administrator and the Commissioner of Buildings and General Services shall be the superintendents of the building. They shall make decisions regarding building construction, space allocations, and use of the facility after consulting with the Superior Court presiding judge and the assistant judges. The county shall no longer be required to maintain a courthouse.
(c) The Court Administrator, in consultation with the presiding judge of the Superior Court, shall determine what judicial operations will occur in the county courthouse.
(Added 1993, No. 233 (Adj. Sess.), § 45, eff. June 21, 1994; amended 1995, No. 62, § 41, eff. April 26, 1995; 1995, No. 148 (Adj. Sess.), § 4(c)(1), eff. May 6, 1996; 1995, No. 181 (Adj. Sess.), § 7; 1997, No. 121 (Adj. Sess.), § 16; 2009, No. 154 (Adj. Sess.), § 163; 2009, No. 154 (Adj. Sess.), § 163a, eff. Feb. 1, 2011.)
§ 71b Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238a(a)(4), eff. February 1, 2011.
§ 72 Expenses of the Superior Court
The expenses connected with the Superior Court, unless otherwise provided, shall be paid by the State.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c), eff. March 1, 1961; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 28, eff. June 13, 1988; 1995, No. 181 (Adj. Sess.), § 8; 1999, No. 135 (Adj. Sess.), § 1; 2009, No. 154 (Adj. Sess.), § 164.)
§ 73 Support of sheriff’s department
(a) The county shall provide the sheriff with an adequate bond, a suitable office, office equipment and supplies, and adequate telephone service. The sheriff’s department shall also be provided with law enforcement equipment, supplies, insurance, and funds for maintaining and operating such equipment as the assistant judges consider necessary to ensure that the department operates in a safe, accountable, and professional manner. The county shall also provide reasonable secretarial assistance and bookkeeping assistance. The county shall also provide funds necessary for department personnel to comply with basic and in-service training requirements established by the Vermont Criminal Justice Council; funds to provide the matching share for grants from federal, State, or private sources; and funds to pay the liability insurance premiums for the sheriff and sheriff’s deputies.
(b) From revenues derived from a contract, the sheriff’s department shall provide salaries, equipment, and other funds necessary to carry out that contract.
(Amended 1967, No. 345 (Adj. Sess.), § 15, eff. April 1, 1969; 1971, No. 141 (Adj. Sess.), eff. Feb. 3, 1972; 1977, No. 218 (Adj. Sess.), § 5; 1987, No. 262 (Adj. Sess.), § 1.)
§ 74 Repealed
[Repealed]
1995, No. 181 (Adj. Sess.), § 15.
§ 75 Telephone
Each county shall provide adequate telephone service for the county courthouse, the offices of the county clerk, and the sheriff.
(Amended 1967, No. 345 (Adj. Sess.), § 17, eff. April 1, 1969; 1969, No. 266 (Adj. Sess.), § 5, eff. July 1, 1971; 2009, No. 154 (Adj. Sess.), § 165, eff. Feb. 1, 2011.)
§ 76 County law library
Each county may maintain a complete set of Vermont Reports including the digest thereof in the county clerk’s office and in each Probate office. The county may maintain in the courthouse or elsewhere such additional law books as in the opinion of the assistant judges are needful for the judges and officials having offices in the county.
(Amended 2009, No. 154 (Adj. Sess.), § 165a.)
§ 77 County lands; purchase; condemnation
(a) Each county may acquire and own such lands and rights in lands as in the opinion of the assistant judges are needful for county purposes.
(b) A county may condemn land in situations similar to those in which a municipality may condemn under section 2805 of this title by complying with the procedures established in sections 2805 through 2812 of this title, with the assistant judges performing the duties assigned by those sections to the selectboard.
(c) In any proceeding brought by a county under subsection (b) of this section, the assistant judges shall be disqualified, and the proceeding shall be heard by the presiding judge sitting alone.
(Amended 1979, No. 193 (Adj. Sess.), § 1, eff. May 6, 1980; 2009, No. 154 (Adj. Sess.), § 166; 2013, No. 161 (Adj. Sess.), § 72.)
Subchapter 2 Capital Construction
§ 81 Preliminary cost estimates
(a) The assistant judges of a county may authorize the preparation of preliminary plans and cost estimates for capital construction. For this purpose, the assistant judges may employ or retain architects, engineers, and such other personnel as in their discretion are required.
(b) Upon completion of the preliminary plans and cost estimates authorized by subsection (a) of this section, the assistant judges shall determine the amount to be assessed against the equalized grand list of the county.
(Added 1971, No. 230 (Adj. Sess.), § 12.)
§ 82 Submission to voters
(a) Debt may be incurred and bonds issued pursuant to the limitations of this chapter for the amount of funds necessary for capital construction.
(b) Any bond issue pursuant to this chapter for capital construction shall be passed by a majority of the votes of those voting. The issue shall be submitted to the voters of the county at the first general or annual municipal election scheduled at least 90 days after the completion of the preliminary construction plans and cost estimates.
(c) The assistant judges shall not submit to the voters more than twice the same proposition of incurring a bonded debt to pay for the cost of any particular capital construction project. If the first submission to the voters fails, the proposition may be resubmitted a second time at least 90 days but less than 180 days following the first submission.
(d) Warnings of election, notification and conduct of meeting if required, and validation of bond issuance shall, insofar as applicable, be governed by the provisions of subchapter 1 of chapter 53 of this title relating to the issuance of municipal bonds.
(Added 1971, No. 230 (Adj. Sess.), § 12; amended 2003, No. 121 (Adj. Sess.), § 47, eff. June 8, 2004.)
§ 83 Form, denominations, certification, and cancellation of bonds
Insofar as applicable, the provisions of subchapter 1 of chapter 53 of this title relating to the form, denominations, certification, cancellation, and other matters affecting the issuance of municipal bonds shall govern bonds issued pursuant to this chapter.
(Added 1971, No. 230 (Adj. Sess.), § 12.)
Chapter 5 County Officers; Powers and Duties
Subchapter 1 Assistant Judges
§ 131 Powers and duties
The assistant judges shall have the care and superintendence of county property, may provide for the acceptance and processing of U.S. passport applications by county clerks pursuant to memorandums of understanding entered into under 4 V.S.A. § 691, may take deeds and leases of real estate to the county, rent or sell and convey unused lands belonging to the county, keep the courthouse, jail, and other county buildings insured, and make needed repairs and improvements in and around the same.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 167; 2011, No. 1, § 10, eff. Feb. 2, 2011.)
§ 132 United States and State flags; display
Such judges shall purchase at the expense of the county and cause to be displayed in the court room in the county courthouse a United States and a State flag. On legal holidays commemorative of historic events they shall cause such flags to be displayed on the courthouse or grounds.
§ 133 County tax; amount; assessment
(a) Annually, the assistant judges shall prepare a proposed budget of the county for the ensuing year.
(b) Before a budget to be proposed at the annual meeting is finalized, the assistant judges shall hold a meeting to invite discussion of the preliminary proposed budget. The meeting to review the preliminary proposed budget shall take place at least 30 and not more than 40 days prior to the annual meeting. Notice of this meeting shall be published in all daily newspapers having general circulation in the county at least 14 days before the meeting. If a daily newspaper of general circulation is not published in the county, the notice shall be published in a weekly newspaper of general circulation in the county. A copy of the notice shall be mailed to the legislative bodies of the towns located in the county.
(c) Annually, on or before January 31, the assistant judges shall call a meeting of the voters of the county for the purpose of presenting the proposed budget of the county for the ensuing year and inviting discussion thereon. The meeting shall be held at a place within the county and shall be warned by a notice posted in three public places in the county and published in all daily newspapers having general circulation in the county at least 30 and not more than 40 days prior to the meeting. If a daily newspaper of general circulation is not published in the county, the notice shall be published in a weekly newspaper of general circulation in the county. The warning shall include a summary of the expenditures being proposed for the various areas covered by the proposed budget and shall provide the public with information about how a copy of the proposal may be obtained. Members of legislative bodies of each of the towns within the county shall be notified of the meeting by mail. Copies of the proposed budget shall be available to the public during normal business hours in the county courthouse and in the office of the clerks of the towns located in the county.
(d) Annually, not less than 14 nor more than 21 days following the county meeting provided in subsection (c) of this section, the assistant judges shall review the proposed budget of the county in light of any discussion thereon at the county meeting and, if deemed expedient, make and deliver to the county treasurer a written order directing the treasurer to issue, on or before March 1 following, the statements required by 32 V.S.A. § 4965, and warrants to the several treasurers of the towns for the collection of a tax sufficient to pay such indebtedness and estimated expense, but the whole amount of such tax shall not exceed in one year five cents on a dollar of the equalized grand list of such county.
(e)(1) The proposed budget shall contain any cost estimates and preliminary plans for capital construction in the county pursuant to subchapter 2 of chapter 3 of this title, estimates of the indebtedness of the county, estimates of the probable ordinary expenses of the county for the ensuing year, and any and all other expenses and obligations of the county.
(2) The budget may contain provisions for additions to an operations reserve fund, and the accumulated total reserve fund shall not at any time exceed an amount equal to 15 percent of the current budget presented.
(3) Pursuant to a capital program, as described in section 4430 of this title, the budget may also include a provision for a separate reserve fund for capital construction, reconstruction, remodeling, repairs, renovation, design, or redesign, which shall not at any time exceed an amount equal to 75 percent of the current budget presented. However, if capital construction, reconstruction, remodeling, repairs, renovation, design, or redesign is necessitated by an insured loss or damage to a county building, the separate reserve fund may also include the amount of insurance proceeds received as a result of the loss or damage.
(4) All county budgets shall include the amounts currently budgeted for each item included in the proposed budget.
(f) The amount of the tax shall be apportioned upon the towns, unorganized towns, and gores according to the ratio of the equalized grand list, as defined in 16 V.S.A. § 3441, of the individual town, unorganized town, or gore to the total equalized grand list of all the towns, unorganized towns, and gores in the county.
(g) The assistant judges shall hold the meetings required by this section at times convenient to the public.
(h) The fiscal year of the county shall end on January 31, unless the assistant judges, after discussion of the issue at the annual meeting, vote to have a different fiscal year, in which case the fiscal year so voted shall remain in effect until amended.
(Amended 1967, No. 256 (Adj. Sess.), § 1, eff. Feb. 20, 1968; 1971, No. 73, § 3, eff. April 16, 1971, No. 230 (Adj. Sess.), § 11; 1983, No. 78, eff. April 28, 1983; 1997, No. 107 (Adj. Sess.), § 1, eff. Jan. 1, 1999; 2003, No. 121 (Adj. Sess.), § 48, eff. June 8, 2004; 2011, No. 144 (Adj. Sess.), § 5, eff. May 15, 2012; 2019, No. 104 (Adj. Sess.), § 6.)
§ 134 County tax; county treasurer; warrant
The county treasurer shall issue warrants on or before March 1 requiring the tax to be paid in two equal installments on or before July 5 and on or before November 5.
(Amended 1989, No. 176 (Adj. Sess.), eff. May 12, 1990; 2011, No. 81 (Adj. Sess.), § 1, eff. April 13, 2012; 2017, No. 74, § 62.)
§ 135 County tax; payment by town
Each town treasurer shall present such warrant to the selectboard which, within the time required by the warrant, shall draw an order on the town treasury for the amount of such tax and such treasurer shall forthwith pay the county treasurer the amount of such order. Such tax shall be assessed by the selectboard upon the grand list of the town unless otherwise provided for.
(Amended 2017, No. 74, § 63.)
§ 136 Actions by and against county; process; attorney
Actions in which a county is the party in interest shall be brought by or against the county, and service of process against a county shall be made by leaving copies with the county clerk or county treasurer. The assistant judges may appoint an attorney to prosecute or defend actions in which the county is a party.
(Amended 1971, No. 185 (Adj. Sess.), § 198, eff. March 29, 1972.)
§ 137 Jurisdiction
Superior Courts, within their respective jurisdictions, may take cognizance of actions in favor of or against the county.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 249 (Adj. Sess.), § 77, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 168.)
§ 138 Local option taxes
(a) Local option taxes are authorized under this section for the purpose of affording municipalities an alternative method of raising municipal revenues. Except as provided in subsection (h) of this section, and subject to certification by the Commissioner of Taxes, a local option tax shall be effective beginning on the next tax quarter following 90 days’ notice to the Department of Taxes of the imposition.
(b) If the legislative body of a municipality by a majority vote recommends, the voters of a municipality may, at an annual or special meeting warned for that purpose, by a majority vote of those present and voting, assess any or all of the following:
(1) a one percent sales tax;
(2) a one percent meals and alcoholic beverages tax;
(3) a one percent rooms tax.
[Subdivision (c)(1) effective until October 1, 2025; see also subdivision (c)(1) effective October 1, 2025 set out below.]
(c)(1) Any tax imposed under the authority of this section shall be collected and administered by the Department of Taxes, in accordance with State law governing such State tax or taxes and subdivision (2) of this subsection; provided, however, that a sales tax imposed under this section shall be collected on each sale that is subject to the Vermont sales tax using a destination basis for taxation. Except with respect to taxes collected on the sale of aviation jet fuel, a per-return fee of $5.96 shall be assessed, 70 percent of which shall be borne by the municipality, and 30 percent of which shall be borne by the State to be paid from the PILOT Special Fund. Notwithstanding 32 V.S.A. § 603 or any other provision of law or municipal charter to the contrary, revenue from the fee shall be used to compensate the Department for the costs of administering and collecting the local option tax and of administering the State appraisal and litigation program established in 32 V.S.A. § 5413. The fee shall be subject to the provisions of 32 V.S.A. § 605.
[Subdivision (c)(1) effective October 1, 2025; see also subdivision (c)(1) effective until October 1, 2025 set out above.]
(c)(1) Any tax imposed under the authority of this section shall be collected and administered by the Department of Taxes, in accordance with State law governing such State tax or taxes and subdivision (2) of this subsection; provided, however, that a sales tax imposed under this section shall be collected on each sale that is subject to the Vermont sales tax using a destination basis for taxation. Except with respect to taxes collected on the sale of aviation jet fuel, a per-return fee of $5.96 shall be assessed, 75 percent of which shall be borne by the municipality, and 25 percent of which shall be borne by the State to be paid from the PILOT Special Fund. Notwithstanding 32 V.S.A. § 603 or any other provision of law or municipal charter to the contrary, revenue from the fee shall be used to compensate the Department for the costs of administering and collecting the local option tax and of administering the State appraisal and litigation program established in 32 V.S.A. § 5413. The fee shall be subject to the provisions of 32 V.S.A. § 605.
(2) Notwithstanding any other law or municipal charter to the contrary, if the Commissioner determines that local option tax was collected on a transaction in a municipality not authorized to impose local option tax under this section, the Commissioner shall either refund the erroneously collected tax pursuant to 32 V.S.A. chapter 233 or 225 or, if the purchaser cannot reasonably be determined, deposit the erroneously collected tax as required for State sales and use tax pursuant to 16 V.S.A. § 4025(a)(6) or State meals and rooms tax pursuant to 10 V.S.A. § 1388(a)(4), 16 V.S.A. § 4025(a)(4), and 32 V.S.A. § 435(b)(7).
[Subdivision (d)(1) effective until October 1, 2025; see also subdivision (d)(1) effective October 1, 2025 set out below.]
(d)(1) Except as provided in subsection (c) of this section and subdivision (2) of this subsection with respect to taxes collected on the sale of aviation jet fuel, of the taxes collected under this section, 70 percent of the taxes shall be paid on a quarterly basis to the municipality in which they were collected, after reduction for the costs of administration and collection under subsection (c) of this section. Revenues received by a municipality may be expended for municipal services only, and not for education expenditures. Any remaining revenue shall be deposited into the PILOT Special Fund established by 32 V.S.A. § 3709.
[Subdivision (d)(1) effective October 1, 2025; see also subdivision (d)(1) effective until October 1, 2025 set out above.]
(d)(1) Except as provided in subsection (c) of this section and subdivision (2) of this subsection with respect to taxes collected on the sale of aviation jet fuel, of the taxes collected under this section, 75 percent of the taxes shall be paid on a quarterly basis to the municipality in which they were collected, after reduction for the costs of administration and collection under subsection (c) of this section. Revenues received by a municipality may be expended for municipal services only, and not for education expenditures. Any remaining revenue shall be deposited into the PILOT Special Fund established by 32 V.S.A. § 3709.
(2)(A) Of the taxes collected under this section on the sale of aviation jet fuel, on a quarterly basis, 70 percent of the taxes shall be paid to the municipality in which they were collected, and 30 percent shall be deposited in the Transportation Fund.
(B) All revenues referenced in subdivision (A) of this subdivision (2) shall be used exclusively for aviation purposes consistent with 49 U.S.C. § 47133 and Federal Aviation Administration regulations and policies.
(e) As used in this section, “municipality” means a city, town, or incorporated village.
(f) Nothing in this section shall affect the validity of any existing provision of law or municipal charter authorizing a municipality to impose a tax similar to the local option taxes authorized in this section.
(g) If the legislative body of a municipality by a majority vote recommends or by petition of ten percent of the voters of a municipality recommends, the voters of a municipality may at an annual or special meeting warned for that purpose by a majority vote of those present and voting rescind any or all of the local option taxes assessed under subsection (b) of this section.
(h)(1) The Commissioner of Taxes may limit the number of municipalities enacting a local option tax under subsection (b) of this section to five per calendar year.
(2) The Commissioner of Taxes shall certify the first five notices from municipalities it receives under subsection (a) of this section in each calendar year and those municipalities may proceed to assess a local option tax according to subsection (a) of this section.
(3) In the Commissioner’s discretion, after receiving notice from the fifth municipality pursuant to subsection (a) of this section in a calendar year, the Commissioner of Taxes may delay certification, or reject further notices for that year, if the Commissioner determines that additional certifications would cause an undue burden on tax administration.
(Added 1997, No. 60, § 88; amended 1997, No. 71 (Adj. Sess.), § 61, eff. March 11, 1998; 1999, No. 49, § 87, eff. June 2, 1999; 2001, No. 144 (Adj. Sess.), § 25; 2003, No. 66, § 53b, see effective date note set out below; 2003, No. 68, §§ 66, 68, eff. June 18, 2003; 2003, No. 152 (Adj. Sess.), § 15; 2005, No. 215 (Adj. Sess.), §§ 286, 293b, 293c; 2009, No. 160 (Adj. Sess.), § 8; 2011, No. 128 (Adj. Sess.), § 37; 2011, No. 143 (Adj. Sess.), § 48, eff. May 15, 2012; 2017, No. 158 (Adj. Sess.), § 36, eff. Jan. 1, 2019; 2023, No. 72, § 6, eff. June 19, 2023; 2023, No. 78, § E.111.3, eff. July 1, 2023; 2023, No. 144 (Adj. Sess.), § 20, eff. July 1, 2024; 2025, No. 57, § 11, eff. October 1, 2025.)
§ 139 Assistant judge judicial education
The assistant judges, either collectively or through a duly authorized committee of assistant judges established by a majority vote of the assistant judges after consultation with the Chief Superior Judge, shall, by majority vote:
(1) identify the training needs of assistant judges, including needs that are required by law; and
(2) design, organize, and implement training for assistant judges, including training that is required by law.
(Added 2001, No. 70, § 3, eff. June 16, 2001; amended 2021, No. 147 (Adj. Sess.), § 26, eff. May 31, 2022.)
Subchapter 2 County Clerk
§ 171 Appointment
The assistant judges shall appoint a county clerk who shall be sworn and hold his or her office during the pleasure of such judges and until his or her successor is appointed and has qualified.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 169.)
§ 172 Certificate of appointment
Upon the appointment of a county clerk, such judges shall transmit to the Secretary of State their certificate of appointment and qualification of such clerk signed by them. Such certificate shall bear on its face the signature and impression of the official seal of the clerk and verification of the genuineness of each.
§ 173 Certificate of Secretary of State
Upon request, the Secretary of State shall certify under seal to the appointment, qualification, and authority of a county clerk described in a certificate on file in his or her office, and as to the genuineness of the signature and seal of office of a county clerk appearing on any instrument within the authority of such clerk to execute.
§ 174 Repealed
[Repealed]
2009, No; 154 (Adj. Sess.), § 238.
§ 175 Bond to county
Before entering upon the duties of his or her office, a county clerk shall become bound to the county in the sum of $3,000.00, with sufficient sureties, by way of recognizance, before the assistant judges, or give a bond to the county executed by principal and sureties in like sum to be approved by the assistant judges, conditioned for the faithful performance of his or her duties. Such bonds of county clerks shall be taken biennially in the month of February and recorded in the office of the county clerk.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 170.)
§ 176 Deputy clerk
A county clerk may, subject to the approval of the assistant judges, appoint one or more deputies who may perform the duties of clerk for whose acts he or she shall be responsible and whose deputations he or she may revoke at pleasure. A record of the appointments shall be made in the office of the clerk. In case of the death of the clerk or his or her inability to act, the deputy or deputies in order of appointment shall perform the duties of the office until a clerk is appointed. In case of the suspension of the clerk’s duties as a condition of release pending trial for violating 13 V.S.A. § 2537, the assistant judges of the county shall appoint a person to perform the duties of the office until the charge of violating 13 V.S.A. § 2537 is resolved. The compensation for the clerk and deputy clerk shall be fixed by the assistant judges and paid for by the county. Such compensation may include such employment benefits as are presently provided to State employees, including health insurance, life insurance, and pension plan, the expense for which shall be borne by the county and the employees.
(Amended 1973, No. 106, § 7, eff. May 25, 1973; 2007, No. 169 (Adj. Sess.), § 3; 2009, No. 154 (Adj. Sess.), § 171.)
§ 177 Certification of election and qualification of officers
Upon request, a county clerk shall certify under seal to the election or appointment of officers or magistrates, certificates of whose election or appointment and of having taken the oath of office, when such oath is required, have been filed with him or her as provided by law.
§ 178 Record of sheriff’s commission; copies; evidence
The county clerk shall record, in a book kept for that purpose, sheriffs’ commissions with the oath of office indorsed thereon. In case of loss or destruction of an original commission or recognizance, a certified copy of the record may be used in court as evidence of the facts therein contained.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 172.)
§ 179 Repealed
[Repealed]
1969, No. 282 (Adj. Sess.), § 14.
§ 180 Claim; clerk to draw orders
Claims against a county shall be examined and allowed by the assistant judges, unless other provision is made by law. A statement of each claim with the amount allowed shall be certified by them to the county clerk, who shall draw an order therefor upon the county treasurer.
§ 181 Settlements; record; filing
Such clerk shall keep on file in his or her office the statements furnished him or her by the assistant judges, upon which he or she has drawn orders, and shall keep a record of such orders, within the number of each, its date, amount, to whom payable, and for what purpose drawn. He or she shall also preserve and keep on file the claims, accounts, or vouchers for which such orders were drawn.
§ 182 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238.
§ 183 Repealed
[Repealed]
2019, No. 178 (Adj. Sess.), § 27, eff. October 1, 2020
§ 184 Processing of passport applications
The county clerk shall, if so directed by the assistant judges, accept and process applications for U.S. passports pursuant to memorandums of understanding entered into under 4 V.S.A. § 691.
(Added 2011, No. 1, § 11, eff. February 2, 2011.)
Subchapter 3 County Treasurer
§ 211 Appointment; vacancy
Biennially, on February 1, the assistant judges shall appoint a treasurer for the county who shall hold office for two years and until his or her successor is appointed and qualified. If the treasurer dies or in the opinion of the assistant judges becomes disqualified, they may appoint a treasurer for the unexpired term. If the treasurer has his or her duties suspended as a condition of release pending trial for violating 13 V.S.A. § 2537, the assistant judges of the county shall appoint a person to perform the duties of the treasurer until the charge of violating 13 V.S.A. § 2537 is resolved. If the assistant judges cannot agree upon whom to appoint, the Auditor of Accounts shall make the appointment.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2007, No. 169 (Adj. Sess.), § 4; 2009, No. 154 (Adj. Sess.), § 174.)
§ 212 Bond
Before entering upon the duties of his or her office, a county treasurer shall become bound to the county in the sum of $5,000.00, with sufficient sureties, by way of recognizance, before the assistant judges, or give a bond to the county executed by principal and sureties in like sum to be approved by the assistant judges, conditioned for the faithful performance of his or her duties. The recognizance or bond shall be lodged with and recorded by the county clerk and renewed annually in the month of February.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 175.)
§ 213 Accounts; disbursements
The treasurer shall keep proper entries of monies received and paid out, under appropriate accounts, so that the revenue of the county and the disbursements shall appear in detail. No money shall be paid out of the county treasury except upon the order of the county clerk.
§ 214 Care of lands in unorganized towns and gores; lease lands
The treasurer shall have the care of the lands in unorganized towns and gores in the county, granted as glebes, lands granted to the use of the ministry or the social worship of God, lands granted to the first settled minister, and lands granted or reserved for the use or support of schools, until such towns or gores are organized, but this section shall not affect a lease or contract respecting such lands made under previous law.
(Amended 2017, No. 74, § 64.)
§ 215 Lands in unorganized towns and gores; power to sue and defend actions
During the time the towns or gores described in section 214 of this subchapter remain unorganized, the treasurer may commence and prosecute or defend in the name of the county any action necessary to recover or protect the possession of such lands or to recover damages for trespass committed thereon.
(Amended 2017, No. 74, § 65.)
§ 216 Lands in unorganized towns and gores; rents
(a) The treasurer may lease the lands described in section 214 of this subchapter in such manner as he or she judges beneficial, reserving rents for the same, which shall annually be paid into the treasury of the county, until the town or gore in which the lands lie is organized. Thereafter the rents shall be paid into the treasury of the town in which the lands lie.
(b) Lands granted to the first settled minister shall not be leased at any one time for a longer period than five years, or until a minister is settled who is entitled to the same.
(Amended 2017, No. 74, § 66.)
§ 217 Disposal of rents of lands in unorganized towns and gores
When paid into the county treasury, the rents described in section 216 of this subchapter shall be disposed of as other funds in the treasury.
(Amended 2017, No. 74, § 67.)
§ 218 Rents for county property
The county treasurer shall collect rents due from persons holding county property by lease or otherwise.
§ 219 Treasurer to levy tax to meet execution
When demand is made of a county treasurer for the payment of an execution against the county and there are not funds in the treasury sufficient to satisfy such execution, such treasurer shall forthwith issue the certified statement required by 32 V.S.A. § 4965 and shall issue warrants to the several treasurers of the towns for the collection of a tax sufficient to pay such execution, the charges thereon, 12 percent interest, and other incidental expenses, returnable within 60 days from the date of such warrants.
§ 220 Tax warrant; payment by town
Each town treasurer shall present the warrant described in section 219 of this subchapter to the selectboard, which shall, within the time required by the warrant, draw an order on the town treasury for the amount of such warrant and that treasurer shall forthwith pay the county treasurer the amount of such order, which amount shall be assessed by the selectboard as a tax upon the grand list of the town unless otherwise provided for.
(Amended 2017, No. 74, § 68.)
§ 221 Annual statement; penalty
(a) Annually, on or before February 5, a county treasurer shall make settlement with the county auditor and deliver to the assistant judges of the county a statement of his or her accounts for the year ending on January 31 preceding, exhibiting the orders accepted by him or her, giving the number, date, amount, and payee of each, the amount and source of revenue of the county and each item thereof, the orders paid by him or her, giving the number, date, and amount of each, to whom made payable and for what purpose drawn, the amount of interest paid thereon, the amount of indebtedness of the county, with a copy of the abstract of orders outstanding and unpaid at the commencement of such year, and the orders accepted by him or her during such year.
(b) A county treasurer who fails to comply with a provision of this section, or who knowingly makes a false return, shall be fined not more than $500.00.
§ 222 Neglect to settle; penalty
A treasurer who refuses or neglects to settle with the auditor, after being notified, shall be fined $20.00, and a like sum for each month’s refusal or neglect thereafter.
§ 223 Statement compared, corrected, and filed
The assistant judges shall compare such statement with the record of the county clerk of orders drawn upon the treasurer for such year, and after correcting errors therein shall cause the same to be recorded in the office of the county clerk.
§ 224 Annual reports; publication; penalty
(a) Within 14 days after the receipt of such statement, the assistant judges shall publish annually such a summary as will show the source and amount of the income of the county, the items and amount of expenditures by the treasurer for the year, together with the indebtedness of the county, and such other facts as to the financial condition of the county as they deem important. Such publication shall be made in not more than three newspapers in the county, or if a newspaper is not published in the county, in some newspaper having general circulation therein.
(b) An assistant judge who fails to comply with a provision of this section shall be fined not more than $500.00.
(Amended 1991, No. 186 (Adj. Sess.), § 35, eff. May 7, 1992.)
Subchapter 4 County Auditor
§ 261 County financial audit
(a) Biennially, all of the accounts of the county treasurer, including any reserve funds, shall be subject to a financial audit conducted according to the generally accepted government accounting standards as established by the federal government accounting office. The audit shall be performed by a public accountant regulated under Title 26 and shall be conducted within four months after the close of the fiscal year being audited. The accountant’s report shall be accompanied by a management letter containing findings and recommendations.
(b) The assistant judges shall enter into a contract with a public accountant to perform the audits required by this section. The assistant judges may enter into a multiple year contract under this section, provided that the person to whom a contract is awarded is selected by use of an open request for proposals process.
(Added 1997, No. 107 (Adj. Sess.), § 2, eff. Jan. 1, 1999.)
§ 262 Repealed
[Repealed]
1997, No. 107 (Adj. Sess.), § 4, eff. Jan. 1, 1999, pursuant to 1997.
Subchapter 5 Sheriffs
§ 290 County sheriff’s department
(a) A sheriff’s department is established in each county. It shall consist of the elected sheriff in each county and such deputy sheriffs and supporting staff as may be appointed by the sheriff. Full-time employees of the sheriff’s department, paid by the county, shall be county employees for all purposes but shall be eligible to join the State Employees Retirement System, provided the county shall pay the employer’s share. The sheriff’s department shall be entitled to utilize all State services available to a town within the county.
(b) Full-time State deputy sheriffs whose primary responsibility is transportation of prisoners persons with a mental condition or psychiatric disability, or juveniles being transported to court or to a court-ordered facility shall be paid by the State of Vermont. The positions and their funding shall be assigned to the Department of State’s Attorneys and Sheriffs. The Executive Director shall have the authority to determine job duties for the position, assignment of positions to county, regular and temporary work locations, assistance to other State agencies and departments, timesheet systems, daily work logs, and to have final approval of personnel matters, including, but not limited to, approval for hiring, paygrade assignment, hiring rate, discipline, and termination. The sheriffs shall have an Executive Committee of not more than five current sheriffs, elected for a two-year term by a vote of the sheriffs held not later than January 15, for a term starting February 1. The Executive Committee shall have a Chair, Vice-Chair, Secretary-Treasurer, and two members at large. The Executive Committee shall meet at least quarterly to provide input to the Department of State’s Attorneys and sheriffs regarding budget, legislation, personnel and policies, and the assignment of positions, when vacancies arise, for efficient use of resources.
(c) Equity, indebtedness, ownership of equipment, and title to motor vehicles associated with the operation of each sheriff’s department and purchased with department funds shall be held in the name of the department, not in the name of the sheriff. The department is constituted as a legal entity with the power to contract and incur liabilities.
(d)(1) Upon the election of a sheriff-elect who is not the incumbent sheriff, an announcement that the incumbent sheriff will not seek reelection, or an announcement that the incumbent sheriff intends to resign, whichever occurs earliest, all financial disbursements from the accounts of the department, including the transfer of real or personal property, or other assets, of the department, shall be co-signed by the sheriff and at least one assistant judge in that county, and the sheriff shall, within two weeks, provide the Department of State’s Attorneys and Sheriffs, the Auditor of Accounts, and the assistant judges of that county with a written list of all transfers of departmental assets and financial disbursements to a single source, in aggregate, greater than $10,000.00 anticipated to occur before the sheriff leaves office. Assistant judges shall consult with the Director of Sheriffs’ Operations when considering whether to co-sign any transfers of departmental assets or financial disbursements to a single source, in aggregate, greater than $10,000.00. The assistant judges shall not unreasonably refuse to co-sign any disbursements or transfer of sheriff’s department assets.
(2) A report of all financial disbursements and transfers made pursuant to this subsection shall be forwarded by the assistant judges to the Auditor of Accounts within 15 days following the sheriff leaving office.
(Added 1977, No. 218 (Adj. Sess.), § 1; amended 1987, No. 262 (Adj. Sess.), § 3; 1991, No. 257 (Adj. Sess.), § 4; 2009, No. 157 (Adj. Sess.), § 4; 2013, No. 96 (Adj. Sess.), § 149; 2021, No. 185 (Adj. Sess.), § E.205, eff. July 1, 2022; 2023, No. 30, §§ 2, 5d, eff. May 31, 2023.)
§ 290b Audits
(a) [Repealed.]
(b) The Auditor of Accounts shall adopt and sheriffs shall comply with a uniform system of accounts, controls, and procedures for the sheriff’s department, which accurately reflects the receipt and disbursement of all funds by the department, the sheriff, and all employees of the department. The uniform system shall include:
(1) requirements for written financial records and books;
(2) procedures for the recording of all financial transactions and the maintenance of such records;
(3) procedures to ensure proper documentation to ensure that all disbursement transactions are properly supported, approved, and recorded;
(4) procedures to ensure that all receipts are properly supported and recorded;
(5) procedures to ensure that bank receipt and disbursement accounts are reconciled on a timely basis;
(6) procedures for the preparation of an annual set of financial reports which accurately reflects the financial transactions and condition of the department;
(7) procedures to ensure that all payments for services performed by the sheriff, deputy sheriffs, or other employees of the department rendered by virtue of their office are made to the sheriff’s department;
(8) procedures and controls that identify revenues received from public entities through appropriations or grants from the federal, State, or local governments from revenues received through contracts with private entities;
(9) procedures to notify the Auditor of Accounts and the Department of State’s Attorneys and Sheriffs of the establishment and activities of any nonpublic organization of which the sheriff or any employee of the sheriff is a director or participant and that has a mission or purpose of supplementing the efforts of the sheriff’s department; and
(10) other procedures and requirements as the Auditor of Accounts deems necessary.
(c) The Auditor of Accounts and the Auditor’s designee may at any time examine the records, accounts, books, papers, contracts, reports, and other materials of the county sheriff departments as they pertain to the financial transactions, obligations, assets, and receipts of that department. The Auditor shall charge for any associated costs in the same manner described in 32 V.S.A. § 168(b).
(d) Annually, each sheriff shall furnish the Auditor of Accounts on forms provided by the Auditor a financial report reflecting the financial transactions and condition of the sheriff’s department. The sheriff shall submit a copy of this report to the assistant judges of the county. The assistant judges shall prepare a report reflecting funds disbursed by the county in support of the sheriff’s department and forward a copy of their report to the Auditor of Accounts. The Auditor of Accounts shall compile the reports and submit one report to the House and Senate Committees on Judiciary. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subsection.
(e) Biennially, according to a schedule established by the Auditor of Accounts, the Auditor shall retain a public accountant to conduct an audit of the financial systems, controls, and procedures within each department. The public accountant shall prepare a written report detailing the review of the department. A copy of this report shall be forwarded to the sheriff, assistant judges, and the Auditor of Accounts. The Auditor shall charge for the costs of the report pursuant to 32 V.S.A. § 168(b).
(Amended 1991, No. 257 (Adj. Sess.), § 3, eff. July 1, 1993; 1993, No. 60, § 55a; 2011, No. 139 (Adj. Sess.), § 18, eff. May 14, 2012; 2015, No. 131 (Adj. Sess.), § 5; 2019, No. 154 (Adj. Sess.), § E.130.1, eff. Oct. 2, 2020; 2023, No. 30, § 3, eff. May 31, 2023.)
§ 291 Bond; oath
Before entering upon the duties of his or her office, a sheriff shall become bound to the treasurer of the county in the sum of $100,000.00, with two or more sufficient sureties by way of recognizance, before the two assistant judges in such county, or give a bond to the treasurer executed by such sheriff with sufficient sureties in like sum to be approved by the two assistant judges, conditioned for the faithful performance of his or her duties and shall take the oath of office before one of the judges, who shall certify the same on the sheriff’s commission. Such recognizance or bond and the commission shall be forthwith recorded in the office of the county clerk.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1991, No. 257 (Adj. Sess.), § 1; 2009, No. 154 (Adj. Sess.), § 176.)
§ 291a Contracts
(a) In the name of the sheriff’s department, the sheriff may enter into written contracts with the State of Vermont, an agency of the United States, one or more towns within or without the county, or any nongovernmental entity, to provide law enforcement or other related services including security services, central dispatching for police, fire, or ambulance services, and centralized support services. Contracts between the sheriff’s department and a town shall be valid if approved by the sheriff and by a majority of the selectboard of the town provided that funding has been approved by a duly warned annual or special town meeting. Deputy sheriffs engaged in the performance of a contract shall be considered employees of the sheriff’s department for all purposes, except that for purposes of determining eligibility for Social Security, employees under this section shall be considered county employees, provided however that the sheriffs’ departments shall be responsible for employers’ contributions.
(b) A contract made with a town, city, village, or county to provide law enforcement or related services shall contain provisions governing the following subjects as best suit the needs of the parties:
(1) the services to be provided, including State statutes or town ordinances, or both, which are to be enforced;
(2) rates of compensation, allocation of expenses, total cost of contract, and methods of payment therefor;
(3) ownership of any property acquired under the contract in event of termination of the contract;
(4) the type, frequency, and information to be contained in reports submitted by the sheriff’s department to the town;
(5) methods adopted to resolve disputes;
(6) the term of the contract shall specify the commencement and termination date of the services to be provided and provisions for renewal thereof; and
(7) such other items, not inconsistent with law, as may be agreed upon.
(c) A contract under this section may contain provisions for compensation to the sheriff for administration of the contract and related services. No compensation may be paid to a sheriff for administration of the contract or related services unless the contract sets forth in writing the rate or method of calculation for the compensation and a schedule of payment; provided that a sheriff’s compensation for administration shall not exceed five percent of the contract. A sheriff’s rate of compensation shall be at a rate equivalent to other employees of the department who provide similar services under the contract. Compensation to the sheriff shall be made in accordance with the schedule set forth in the contract but in no event may a sheriff be compensated for administration of the contract and related services unless the compensation is made in the same calendar year in which the revenue was received by the department under the contract. Funds derived from charges for the administration of a contract, if used for sheriff, sheriff deputy, or other departmental employee compensation, bonuses, salary supplements, retirement contributions, or employment benefits, shall be expended in accordance with the model policy created and maintained by the Department of State’s Attorneys and Sheriffs. Willful failure to comply with this policy shall constitute Category B conduct pursuant to 20 V.S.A. § 2401(2).
(d) An agreement or contract for services between a sheriff’s department and governmental or nongovernmental entity shall be in writing if the total cost of the contract or agreement exceeds $2,000.00 or the duration of the services provided exceeds ten working days or if the cumulative total of the contracts or agreements entered into by the sheriff’s department and the same governmental or nongovernmental entity exceeds $2,000.00 or ten working days within a calendar year. Annually, the sheriff shall submit to the assistant judges for filing with the county clerk a report of all written contracts, categorized by the contracting party, services rendered, date of contract, and amount received.
(e) Each sheriff’s department shall establish a procedure for all purchase contracts entered into by the department. The procedure shall be established in writing, filed with the assistant judges, and made available for public review. The written procedure shall also be forwarded to the Auditor of Accounts for use in the conduct of audits required under this chapter.
(f) An agreement or contract for sheriff’s departments to provide law enforcement or security services to county and State courthouses shall be subject to a single, statewide contracted rate of pay for such services over all county and State courthouses.
(Added 1977, No. 218 (Adj. Sess.), § 2; amended 1987, No. 121, § 10; 1991, No. 257 (Adj. Sess.), § 2; 2023, No. 30, § 5, eff. January 1, 2024.)
§ 292 Office vacant
When such sheriff neglects to become so bound within 15 days from the beginning of his or her term of office, the office of sheriff shall be vacant.
§ 293 Duties
(a) A sheriff so commissioned and sworn shall serve and execute lawful writs, warrants, and processes directed to the sheriff, according to the precept thereof, and do all other things pertaining to the office of sheriff.
(b) A sheriff shall maintain a record of the sheriff’s work schedule, including work days, leave taken, and any remote work performed outside the sheriff’s district for a period of more than three days.
(c) If an individual who has a relief from abuse order pursuant to 15 V.S.A. § 1103 requires assistance in the retrieval of personal belongings from the individual’s residence and that individual requests assistance from a sheriff’s department providing law enforcement services in the county in which that individual resides, the sheriff’s department shall provide the assistance.
(d) A sheriff shall provide law enforcement and security services for each county and State courthouse within the sheriff’s county of jurisdiction in accordance with section 291a of this title.
(Amended 2023, No. 30, § 6, eff. May 31, 2023; 2023, No. 30, § 6c, eff. January 1, 2024.)
§ 294 Sheriff imprisoned
If a sheriff is confined in prison by legal process, his or her functions as sheriff shall be suspended. When the sheriff is released from imprisonment during his or her term of office, he or she shall file a certificate of his or her discharge signed by one of the judges of the Superior Court, in the office of the county clerk, and deliver a like certificate to the high bailiff. Thereupon he or she shall resume the powers and execute the duties of sheriff.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 177.)
§ 295 Repealed
[Repealed]
1971, No. 258 (Adj. Sess.), § 19.
§ 296 Transportation of prisoners
All commitments to a State correctional facility or to any other place named by the Commissioner of Corrections or committing court shall be made by any sheriff, deputy sheriff, State Police officer, police officer, or constable in the State, or the Commissioner of Corrections or his or her authorized agent.
(Amended 1967, No. 345 (Adj. Sess.), § 18, eff. April 1, 1969; 1969, No. 33, § 3, eff. April 1, 1969; 1989, No. 187 (Adj. Sess.), § 5; 1995, No. 174 (Adj. Sess.), § 3; 2007, No. 15, § 19; 2011, No. 79 (Adj. Sess.), § 29a, eff. April 4, 2012.)
§ 296a Civil liability resulting from escaped prisoner
A jailer or other officer who, through negligence, suffers a prisoner in his or her custody, convicted of or charged with a crime, to escape, shall be civilly liable to any person proximately damaged as a result thereof to the maximum amount of $500.00. A person so damaged may maintain a civil action therefor.
(Added 1977, No. 233 (Adj. Sess.), § 5, eff. April 17, 1978.)
§§ 297, 298 Repealed
[Repealed]
1967, No. 345 (Adj. Sess.), § 32, eff. April 1, 1969.
§ 299 Duties as peace officer
A sheriff shall preserve the peace using force only as permitted pursuant to 20 V.S.A. chapter 151. A sheriff may apprehend, without warrant, individuals assembled in disturbance of the peace and bring them before the Criminal Division of the Superior Court, which shall proceed with such individuals as with individuals brought before it by process issued by the court.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 78, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 238; 2023, No. 30, § 8, eff. May 31, 2023.)
§ 300 May require assistance
A sheriff or other officer in the discharge of the duties of his or her office, for the preservation of the peace, or the suppression or prevention of any criminal matter or cause, may require suitable assistance.
§ 301 Repealed
[Repealed]
(Amended 2017, No. 83, § 157; repealed by 2023, No. 30, § 9, eff. May 31, 2023.)
§ 302 Power to search; return
In the daytime, a sheriff may enter and search houses, buildings, or other places for a person for whose apprehension he or she has a warrant, issued in a criminal prosecution, a prosecution for bastardy, or on a bailpiece. He or she may so enter with a warrant or extent for the collection of taxes, or the collection of a fine, or with a warrant to search for goods or chattels stolen or purloined, when such property is supposed to be secreted therein. He or she shall not make return in any case that he or she cannot execute any such precept.
§ 303 Obstructing sheriff; penalty
A person who refuses a sheriff entrance to his or her house or other buildings as provided in section 302 of this title, or threatens him or her or abuses him or her or his or her assistants before or after he or she has entered such buildings, or hinders him or her in any way in the execution of the warrants provided for in section 302, shall be fined not more than $200.00.
§ 304 Liability for misfeasance of deputy
Actions for official misfeasance or neglect of a deputy sheriff, or for cause affecting his or her administration of the office, shall be sustained only against the sheriff; but the sheriff shall not be amenable criminally for the conduct of his or her deputy, other than for fines for neglect of duty.
§ 305 Not to appear as counsel, or make writ
A sheriff or deputy sheriff shall not appear in any court as counsel, nor make a writ, complaint, answer, or other precept or process, except in his or her own cause. A writ, complaint, or other process herein prohibited made by him or her shall be dismissed and the defendant recover his or her costs.
§ 306 Term of office
A sheriff shall execute his or her official duties until his or her successor is qualified to act.
§ 307 Deputy sheriffs; appointments and revocation
(a) A sheriff may appoint deputies who need not be legal residents of the State, one or more of whom shall be a woman. The duties of deputy sheriffs shall be the same as those imposed by law on sheriffs and other peace officers in the enforcement of the criminal law. A deputy shall not perform an official act until his or her deputation and oath are filed for record in the office of the county clerk. A sheriff may dismiss a deputy and revoke his or her deputation. Such revocation shall be recorded in the office of the county clerk and shall take effect from the day of such record.
(b) A sheriff may appoint persons as deputy sheriffs to serve civil process, including child support enforcement as provided in 15 V.S.A. § 800, whom the sheriff shall train and supervise. Such deputies need not be qualified law enforcement officers, but if not so qualified shall not have arrest powers, and shall not carry firearms in performance of their duties in serving civil process.
(c) The powers of deputy sheriffs with respect to criminal matters and the enforcement of the law may be exercised statewide.
(Amended 1977, No. 218 (Adj. Sess.), § 4; 1987, No. 122 (Adj. Sess.), § 1, eff. Jan. 26, 1988; 2009, No. 146 (Adj. Sess.), § C20; 2013, No. 49, § 4.)
§ 308 Deputy sheriffs; no compensation for appointment; penalty
(a) A sheriff shall not ask of or receive from his or her deputies any pay, compensation or reward by way of deputation fee, or otherwise, for such appointments.
(b) A sheriff who violates a provision of this section shall be fined not more than $200.00 nor less than $50.00.
(Amended 2017, No. 74, § 69.)
§ 309 Bonds of deputies; liability of sheriff; deputy’s powers and duties
A sheriff shall be liable for the official acts and neglects of his or her deputies, and may take bonds of indemnity from them. Such deputies may, and when required, shall perform any official duty which may be required of the sheriff. Returns of their acts and doings shall be signed by them as deputy sheriffs, and their official acts shall be deemed to be the acts of the sheriff.
§ 310 Repealed
[Repealed]
2013, No. 49, § 5.
§ 311 Training requirements
No person may receive an appointment as a deputy sheriff unless he or she has been awarded a certificate by the Executive Director of the Criminal Justice Training Council attesting to his or her satisfactory completion of an approved basic training program, except as provided in section 307(b) of this title.
(Added 1971, No. 7, § 2, eff. July 1, 1971; amended 1977, No. 218 (Adj. Sess.), § 6.)
§ 312 Jurisdiction of sheriffs
The powers of sheriffs with respect to criminal matters and the enforcement of the law may be exercised statewide.
(Added 1987, No. 122 (Adj. Sess.), § 2, eff. Jan. 26, 1988; amended 1991, No. 257 (Adj. Sess.), § 5; 2015, No. 2, § 3, eff. March 12, 2015.)
§ 313 Conflict of interest; appearance of conflict of interest
(a) Sheriffs and deputy sheriffs are considered public servants for the purposes of 3 V.S.A. § 1202(1). A conflict of interest may also exist when a member of a sheriff’s or deputy sheriff’s immediate family or household, or the sheriff’s or deputy sheriff’s business associate, or an organization with which the sheriff or deputy sheriff is affiliated, interferes with the proper discharge of a lawful duty. A conflict of interest does not include any interest that is not greater than that of other individuals generally affected by the outcome of the matter.
(b) A sheriff or deputy sheriff shall avoid any conflict of interest or the appearance of a conflict of interest. When confronted with a conflict of interest or an appearance of a conflict of interest, a sheriff or deputy sheriff shall disclose the conflict of interest to the Sheriff’s Executive Committee, recuse themselves from the matter, and not take further action on the matter.
(c) The Department of State’s Attorneys and Sheriffs shall establish procedures for forwarding ethics complaints from any source to the State Ethics Commission based on the procedures set forth in 3 V.S.A. § 1223.
(d) Nothing in this section shall require a sheriff or deputy sheriff to disclose confidential information or information that is otherwise privileged under law. “Confidential information,” as used in this subsection, means information that is exempt from public inspection and copying under 1 V.S.A. § 315 et seq. or is otherwise designated by law as confidential.
(Added 2023, No. 30, § 4, eff. May 31, 2023.)
§ 314 Repealed
[Repealed]
2023, No. 171 (Adj. Sess.), § 2a, eff. June 10, 2024.
Subchapter 6 High Bailiff
§ 331 Oath; bond
Before entering upon the duties of his or her office, a high bailiff shall be sworn and give a bond such as may be required by the assistant judges. The cost of such bond shall be paid by the county.
§ 332 Powers and duties
A high bailiff may serve writs which the sheriff is incompetent to serve, and his or her fees shall be the same as those of the sheriff.
§ 333 Confinement of sheriff; vacancy
A high bailiff by virtue of a writ or other process directed to him or her against the sheriff may commit the sheriff to the Commissioner of Corrections. While the sheriff remains in confinement, or in case of vacancy in the office, the functions of the sheriff shall be exercised by the high bailiff, who shall have the powers and be subject to the liabilities of a sheriff until the sheriff is released from confinement or one is appointed and sworn into office.
(1971, No. 199 (Adj. Sess.), § 17, eff. July 1, 1972.)
Subchapter 7 State's Attorney
§ 361 General duties
(a) A State’s Attorney shall prosecute for offenses committed within his or her county, and all matters and causes cognizable by the Supreme and Superior Courts on behalf of the State, file informations and prepare bills of indictment, deliver executions in favor of the State to an officer for collection immediately after final judgment, taking duplicate receipts therefor, one of which shall be sent to the Commissioner of Finance and Management, and take measures to collect fines and other demands or sums of money due to the State or county.
(b) Part-time State’s Attorneys may represent private clients in Superior Court or the Supreme Court on the question of compensation in highway condemnation cases under the provisions of 19 V.S.A. chapter 5, in those cases where the condemned land is located in any county other than that county in which the State’s Attorney was elected.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1969, No. 131, § 24, eff. April 23, 1969; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1975, No. 33, § 1, eff. April 11, 1975; 1983, No. 195 (Adj. Sess.), § 5(b); 2009, No. 154 (Adj. Sess.), § 178.)
§ 362 Full-time State’s Attorneys; private law practice
Elected State’s Attorneys shall devote full time to their duties and during their terms shall not engage in the private practice of law nor be a partner or associate of any person practicing law. The State’s Attorneys of Essex and Grand Isle Counties shall not serve on a full-time basis and shall not be subject to this section.
(Added 1967, No. 164, § 3, operative on Feb. 1, 1969; amended 1967, No. 363 (Adj. Sess.), § 6, eff. Feb. 1, 1969; 1969, No. 266 (Adj. Sess.), § 6, eff. April 8, 1970; 1971, No. 120, § 48, eff. July 1, 1971; 1971, No. 260 (Adj. Sess.), § 32; 1977, No. 63, § 1, eff. April 23, 1977; 2009, No. 156 (Adj. Sess.), § E.205.)
§ 363 Deputy State’s Attorneys
(a) A State’s Attorney may appoint as many deputy State’s Attorneys as necessary for the proper and efficient performance of the State’s Attorney’s office and may remove them at pleasure. The Executive Committee of the Department of State’s Attorneys and Sheriffs may authorize or direct the Department’s Executive Director to appoint deputy State’s Attorneys who shall have all of the same powers and duties of any other deputy State’s Attorney except that such deputies may prosecute cases in any county of the State. The Executive Committee shall have the authority to limit the term and scope of any such appointments and may remove such deputies at the Committee’s pleasure.
(b) The pay for deputy State’s Attorneys shall be fixed by the Executive Director of the Department of State’s Attorneys and Sheriffs or through collective bargaining pursuant to 3 V.S.A. chapter 27, but it shall not exceed the pay of the State’s Attorney making the appointment or other appointing authority. Deputy State’s Attorneys shall be compensated only for periods of actual performance of the duties of the office. Deputy State’s Attorneys shall be reimbursed for their necessary expenses incurred in connection with their official duties when approved by the State’s Attorneys and the Commissioner of Finance and Management.
(c) Deputy State’s Attorneys shall exercise all the powers and duties of the State’s Attorneys except the power to designate someone to act in the event of their own disqualification.
(d) Deputy State’s Attorneys may not enter upon the duties of the office until they have taken the oath or affirmation of allegiance to the State and the oath of office required by the Constitution, and until the oath together with their appointment is filed for record with the county clerk. If appointed and under oath, a deputy State’s Attorney appointed by a State’s attorney may prosecute cases in another county if the State’s Attorney in the other county files the deputy’s appointment in the other county clerk’s office. In case of a vacancy in the office of State’s Attorney, the appointment of the deputy, except for a deputy appointed by the Executive Committee or Executive Director, shall expire upon the appointment of a new State’s Attorney.
(Amended 1959, No. 253, eff. June 11, 1959; 1959, No. 328 (Adj. Sess.), § 8(c); 1967, No. 363 (Adj. Sess.), §§ 1, 2, eff. March 27, 1968; 1969, No. 266 (Adj. Sess.), § 7, eff. April 8, 1970; 1971, No. 120, § 49; 1971, No. 260 (Adj. Sess.), § 33; 1983, No. 195 (Adj. Sess.), § 5(b); 2009, No. 58, § 24; 2017, No. 81, § 12, eff. June 15, 2017; 2023, No. 39, § 1a, eff. June 1, 2023.)
§ 364 Investigator
(a)(1) A State’s Attorney may appoint an investigator and, with the approval of the Governor, shall fix the investigator’s pay not to exceed that of a noncommissioned officer of the Department of Public Safety, and may remove the investigator at will.
(2) An investigator shall be reimbursed for necessary expenses incurred in connection with his or her official duties when approved by the State’s Attorney and the Commissioner of Finance and Management.
(3) Investigators shall take part in the investigation of crime, the detection of persons suspected of committing crimes, the preparation of any criminal cause for trial, and other tasks related to the office of the State’s Attorney.
(4) No person may be appointed as an investigator unless he or she has had appropriate experience in investigative work for a period of not less than two years, including employment as a private detective or a law enforcement officer, or has successfully completed a course of training under 20 V.S.A. chapter 151.
(b) A person appointed as an investigator who has obtained certification as a Level II or Level III law enforcement officer under the provisions of 20 V.S.A. § 2358 shall have the same powers as sheriffs in criminal matters and the enforcement of the law and in serving criminal process, and shall have all the immunities and matters of defense now available or hereafter made available to sheriffs in a suit brought against them in consequence for acts done in the course of their employment.
(Added 1959, No. 299, § 1; amended 1967, No. 368 (Adj. Sess.), § 3, eff. March 27, 1968; 1969, No. 266 (Adj. Sess.), § 8, eff. April 8, 1970; 1971, No. 120, § 50, eff. July 1, 1971; 1973, No. 77, § 55, eff. July 1, 1973; 1981, No. 108, § 327; 1989, No. 297 (Adj. Sess.), § 1; 1995, No. 123 (Adj. Sess.), § 8, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7, § 7; 2013, No. 141 (Adj. Sess.), § 18, eff. July 1, 2015.)
§ 365 Penalty for taking bribe
A State’s Attorney who, directly or indirectly under color of his or her office, unlawfully receives to his or her use, or the use of another person, money or other valuable thing, shall be fined not less than $300.00 and shall be incapable of holding civil office in the State.
§ 366 Deputy sheriffs; police school
Subject to the approval of the Attorney General, a State’s Attorney may enroll a deputy sheriff in a police school for the purpose of receiving training in crime prevention, detection, and apprehension. The officer so enrolled shall receive compensation during the police school session in an amount fixed by the Attorney General which shall not exceed $20.00 per day. The officer so enrolled shall receive his or her necessary expenses. Bills for his or her compensation and expenses shall be sworn to by him or her. Upon approval by the Attorney General, the Commissioner of Finance shall issue his or her warrant in payment thereof.
(Added 1967, No. 368 (Adj. Sess.), § 4, eff. March 27, 1968; amended 1983, No. 195 (Adj. Sess.), § 5(b).)
§ 367 Department of State’s Attorneys and Sheriffs
(a) There is established a Department of State’s Attorneys and Sheriffs, which shall consist of the 14 State’s Attorneys and 14 sheriffs. The State’s Attorneys shall elect an Executive Committee of five State’s Attorneys from among their members. The members of the Executive Committee shall serve for terms of two years.
(b) The Executive Committee and the Executive Committee of the Vermont Sheriff’s Association shall appoint an Executive Director who shall serve at the pleasure of the Committees. The Executive Director shall be an exempt employee.
(c)(1) The Executive Director shall prepare and submit all budgetary and financial materials and forms that are required of the head of a department of State government with respect to all State funds appropriated for all of the Vermont State’s Attorneys and sheriffs. At the beginning of each fiscal year, the Executive Director, with the approval of the Executive Committee, shall establish allocations for each of the State’s Attorneys’ offices from the State’s Attorneys’ appropriation. Thereafter, the Executive Director shall exercise budgetary control over these allocations and the general appropriation for State’s Attorneys. The Executive Director shall monitor the sheriff’s transport budget and report to the sheriffs on a monthly basis the status of the budget. He or she shall provide centralized support services for the State’s Attorneys and sheriffs with respect to budgetary planning, training, and office management, and perform such other duties as the Executive Committee directs. The Executive Director may employ clerical staff as needed to carry out the functions of the Department.
(2) The Executive Director shall prepare and submit a funding request to the Governor and the General Assembly for the purpose of securing General Fund appropriations for any increased costs related to a collective bargaining agreement and to the Department’s contract bargaining and administration.
(d)(1) If an individual State’s Attorney is aggrieved by a decision of the Executive Director pertaining to an expenditure or proposed expenditure by the State’s Attorney, the question shall be decided by the Executive Committee. The decision of the Committee shall be final.
(2) If an individual sheriff is aggrieved by a decision of the Executive Director pertaining to an expenditure or proposed expenditure by the sheriff, the question shall be decided by the Executive Committee of the Vermont Sheriff’s Association. The decision of the Executive Committee of the Vermont Sheriff’s Association shall be final.
(e)(1) The Executive Director of the Department of State’s Attorneys and Sheriffs shall appoint a Director of Sheriffs’ Operations who shall serve at the pleasure of the Executive Director.
(2) The Director of Sheriffs’ Operations shall provide centralized support services for the sheriffs with respect to budgetary planning, policy development and compliance, training, and office management, and perform such other duties as directed by the Executive Director.
(3) The Director of Sheriffs’ Operations shall develop, maintain, and provide to each sheriff’s department model policies on operational topics, including service of civil process, relief from abuse orders, transportation of prisoners, ethics, and sheriffs’ responsibilities.
(Added 1983, No. 183 (Adj. Sess.), § 1; amended 1985, No. 225 (Adj. Sess.), § 14; 2009, No. 33, § 83(j); 2013, No. 49, § 6; 2013, No. 95 (Adj. Sess.), § 82, eff. Feb. 25, 2014; 2017, No. 81, § 13, eff. June 15, 2017; 2023, No. 30, § 5b, eff. May 31, 2023.)
Subchapter 8 Commissioners of Jail Delivery
§§ 401-404 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238.
Subchapter 9 Notaries Public
§§ 441-443 Repealed
[Repealed]
2017, No. 160 (Adj. Sess.), § 5, eff. July 1, 2019.
§ 444 Repealed
[Repealed]
1983, No. 194 (Adj. Sess.), § 2.
§§ 445, 446 Repealed
[Repealed]
2017, No. 160 (Adj. Sess.), § 5, eff. July 1, 2019.
Chapter 30 Municipalities; General Provisions
§§ 601, 602 Repealed
[Repealed]
1983, No. 10, § 2, eff. March 18, 1983.
Chapter 31 Town Meetings and Elections
§§ 701-743 Repealed
[Repealed]
1977, No. 269 (Adj. Sess.), § 4(b).
Chapter 33 Municipal Officers Generally
Subchapter 1 Board of Civil Authority
§ 801 Composition; meetings
The town clerk, selectboard members and justices residing in a town shall constitute the board of civil authority of such town. Meetings of the board shall be called by the town clerk, or by one of the selectboard members, on application, by giving written notice to each member, and by posting a notice in two or more public places in the town at least five days previous to the meeting. The board shall choose a chair, and the town clerk shall be its clerk. The act of a majority of the board present at the meeting shall be treated as the act of the board, except that when the board is dealing with election issues, 17 V.S.A. § 2103(5) shall control.
(Amended 1979, No. 200 (Adj. Sess.), § 118.)
Subchapter 2 Oaths; Bonds
§ 831 Oaths
The clerk, selectboard members, constables, listers, and fence viewers of a town shall be sworn before entering upon the duties of their offices. A record thereof shall be made by the town clerk.
(Amended 2017, No. 93 (Adj. Sess.), § 19.)
§ 832 Bonds; requirements
Before the school directors, constable, road commissioner, collector of taxes, treasurer, assistant treasurer when appointed by the selectboard, clerk, and any other officer or employee of the town who has authority to receive or disburse town funds enter upon the duties of their offices, the selectboard shall require each to have crime insurance coverage or give a bond conditioned for the faithful performance of his or her duties: the school directors, to the town school district; the other named officers, to the town. The treasurer, assistant treasurer when appointed by the selectboard, and collector shall also be required to have crime insurance coverage or give a bond to the town school district for like purpose. All such crime insurance coverage or bonds shall be in sufficient sums and with sufficient sureties as prescribed and approved by the selectboard. If the selectboard at any time considers the crime insurance coverage or a bond of any such officer or employee to be insufficient, it may require, by written order, the officer or employee to give an additional bond in such sum as it deems necessary. If an officer or employee, so required, neglects for 10 days after such request to give such original or additional bond, his or her office shall be vacant. A bond or crime insurance coverage furnished pursuant to the provisions of this section shall not be valid if signed by any other officer of the same municipality as surety thereon.
(Amended 1959, No. 183, § 2; 1967, No. 147, § 36, eff. Oct. 1, 1968; 2011, No. 155 (Adj. Sess.), § 25; 2021, No. 179 (Adj. Sess.), § 21, eff. July 1, 2022.)
§ 833 Approval; record; evidence
On the approval of crime insurance coverage or a bond required by section 832 of this title, the selectboard of a town shall file the same in the office of the town clerk to be recorded by such clerk in a book kept for that purpose. Copies thereof duly certified by such clerk shall be evidence in court as if the original were produced.
(Amended 2021, No. 179 (Adj. Sess.), § 21, eff. July 1, 2022.)
§ 834 Neglect of clerk or constable; indemnity
A town shall make good the pecuniary damages which may accrue to a person by the neglect or default of the town clerk or constable of such town, to be recovered in a civil action on this statute.
§ 835 Payment of premiums
Bonds or crime insurance coverage required of officers of a municipality shall be paid for by the municipality requiring the same.
(Amended 2021, No. 179 (Adj. Sess.), § 22, eff. July 1, 2022.)
Subchapter 3 Organization of Selectboard; Appointments; Powers
§ 871 Organization of selectboard; appointments
(a) Forthwith after its election and qualification, the selectboard shall organize and elect a chair and, if so voted, a clerk from among its number, and file a certificate of such election for record in the office of the town clerk.
(b) The selectboard shall appoint a tree warden, who need not be a resident of the municipality, and may appoint from among the registered voters the following officers who shall serve until their successors are appointed and qualified and shall certify the appointments to the town clerk who shall record the same:
(1) three fence viewers;
(2) a poundkeeper, for each pound; voting residence in the town need not be a qualification for this office provided appointee gives his or her consent to the appointment;
(3) one or more inspectors of lumber, shingles, and wood;
(4) one or more weighers of coal;
(5) one town service officer; and
(6) one grand juror.
(c) After the selectboard appoints a tree warden, the selectboard shall certify the appointment to the Commissioner of Forests, Parks and Recreation. The certification shall include contact information for the appointed tree warden.
(Amended 1963, No. 74, § 2; 2007, No. 121 (Adj. Sess.), § 18; 2015, No. 71 (Adj. Sess.), § 2; 2017, No. 93 (Adj. Sess.), § 2; 2019, No. 171 (Adj. Sess.), § 1, eff. Nov. 1, 2020.)
§ 872 Selectboard; general powers and duties
(a) The selectboard shall have the general supervision of the affairs of the town and shall cause to be performed all duties required of towns and town school districts not committed by law to the care of any particular officer.
(b) The selectboard shall annually, on or before July 31, acknowledge receipt of and review the document made available by the Auditor of Accounts pursuant to 32 V.S.A. § 163(11) regarding internal financial controls and which has been completed and provided to the selectboard by the treasurer pursuant to section 1571 of this title.
(c) The selectboard may require any other officer or employee of the town who has the authority to receive or disburse town funds to complete and provide to the selectboard a copy of the document made available by the Auditor of Accounts pursuant to 32 V.S.A. § 163(11). The officer or employee shall complete and provide the document to the selectboard within 30 days of the selectboard’s requirement. The selectboard shall acknowledge receipt of and review the completed document within 30 days of receiving it from the officer or employee.
(Amended 2011, No. 155 (Adj. Sess.), § 26.)
§ 873 Repealed
[Repealed]
1967, No. 147, § 53(b), eff. Oct. 1, 1968.
Subchapter 4 Actions by or Against Officers; Liability; Penalties
§ 901 Actions by or against town officers
(a) Where an action is given to any appointed or elected municipal officer or town school district officer, the action shall be brought in the name of the town in which the officer serves and in the case of a town school district officer in the name of the town school district. If the action is given against such officers, it shall be brought against such town or town school district, as the case may be.
(b) The municipality shall assume all reasonable legal fees incurred by an officer when the officer was acting in the performance of his or her duties and did not act with any malicious intent.
(Amended 1967, No. 147, § 36, eff. Oct. 1, 1968; 1973, No. 235 (Adj. Sess.), § 1.)
§ 901a Tort claims against municipal employees
(a) As used in this section, “municipal employee” means any person employed for a wage or salary by a municipality; a volunteer whose services have been requested by the legislative body of a municipality; a volunteer whose services have been requested by a municipal officer; or a volunteer whose services have been requested by an employee of the municipality acting within the scope of the employee’s authority.
(b) When the act or omission of a municipal employee acting within the scope of employment is alleged to have caused damage to property, injury to persons, or death, the exclusive right of action shall lie against the municipality that employed the employee at the time of the act or omission; and no such action may be maintained against the municipal employee or the estate of the municipal employee.
(c) When a municipality assumes the place of a municipal employee in an action as provided in subsection (b) of this section, the municipality may assert all defenses available to the municipal employee, and the municipality shall waive any defense not available to the municipal employee, including municipal sovereign immunity.
(d)(1) The municipality shall defend and indemnify a municipal employee for any legal costs if a municipal employee is improperly named as a defendant in a proceeding.
(2) The municipality shall defend or, when a cause of action contains elements not covered by insurance, reimburse legal defense and expense costs incurred by a municipal employee in the event that a municipal employee is named as a party under subsection (e) of this section and the employee is dismissed from the matter before the entry of a judgment by the court or the acts or omissions of the employee are determined not to be willful, intentional, or outside the scope of the employee’s authority.
(e) This section shall not apply to an act or omission of a municipal employee that was willful, intentional, or outside the scope of the employee’s authority.
(f) When two or more conflicting statutes provide protection to a municipal employee whose act or omission is alleged to have caused damage to property, injury to persons, or death, a court shall apply the statute that grants greater protection to the municipal employee.
(Added 2003, No. 62, § 1; see effective date note below.)
§ 902 Penalty
Unless otherwise provided, a town officer who fails or neglects to perform a duty imposed upon him or her by law shall be fined not more than $100.00.
§ 903 Nonliability of municipal officers for money paid out
An action shall not be maintained against a person for money paid out by him or her as an officer of a municipal corporation in accordance with a vote of such corporation, whether such vote was valid or not.
Subchapter 5 Compensation and Claims
§ 931 Claims for personal services
Claims for personal services, except where compensation is fixed by law or by vote of the town or town school district, shall not be allowed to a town or town school district officer, but the auditors shall report claims and the nature and extent of the services at such meeting.
§ 932 Town may vote compensation
A town may vote to compensate any or all town officers for their official services. Such town in annual meeting may fix the compensation of such officers and of town employees.
§ 933 Selectboard may fix; when
When a town does not fix the amount of the compensation to be paid such officers and town employees, the selectboard shall fix and determine the same except as to their own pay which shall be fixed by the auditors at the time of the annual town audit. If the town has voted to eliminate the office of auditor and the voters fail to fix the compensation to be paid to members of the selectboard, selectboard members shall be compensated at the rate at which they were compensated during the immediately preceding year.
(Amended 1997, No. 83 (Adj. Sess.), § 3.)
§ 934 Selectboard to adjudicate claims
The selectboard shall audit and in its discretion may allow claims against the town and draft orders therefor.
Subchapter 6 Vacancies in Town Offices
§ 961 Vacancy or suspension of officer’s duties
(a) When a municipal officer resigns the officer’s office, has been removed from the office, dies, becomes unable to perform the officer’s duties due to a mental condition or psychiatric disability, or removes from town, the office shall become vacant. Notice of this vacancy shall be posted by the legislative body in at least two public places in the municipality, and in and near the municipal clerk’s office, within 10 days of the creation of the vacancy.
(b) In the event there are so many vacancies on the legislative body that a quorum cannot be achieved, the remaining member or members of the legislative body shall be authorized to draw orders for payment of continuing obligations and necessary expenses until the vacancies are filled pursuant to section 963 of this title.
(c) The legislative body of a county, municipality, or special purpose district may designate a person to perform the duties of an officer whose duties have been suspended as a condition of release pending trial for violating 13 V.S.A. § 2537.
(d) When a municipal officer refuses or neglects within 30 days of election or appointment to take an oath of office pursuant to section 831 of this title, the office shall become vacant. However, the office shall not be deemed vacant until the legislative body of the municipality has warned a regular meeting for that purpose and affords the municipal officer the opportunity to take the oath of office at the meeting.
(Amended 1981, No. 239 (Adj. Sess.), § 27; 1993, No. 115 (Adj. Sess.), § 1, eff. March 30, 1994; 2007, No. 169 (Adj. Sess.), § 5; 2013, No. 96 (Adj. Sess.), § 150; 2021, No. 16, § 1.)
§ 962 Special meeting
A town at a special meeting may fill a vacancy in a town office.
§ 963 Duties of selectboard; special meeting
(a) When a vacancy occurs in any town office, the selectboard forthwith by appointment in writing shall fill such vacancy until an election is had; except that in the event of vacancies in a majority of the selectboard at the same time, such vacancies shall be filled by a special town meeting called for that purpose.
(b) The selectboard shall file an appointment made under this section in the office of the town clerk and the town clerk shall duly record it in the book of town records.
(c) If there are no selectboard 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 clerk or another qualified person to draw orders for payment of continuing obligations and necessary expenses until the vacancies are filled.
(Amended 1981, No. 239 (Adj. Sess.), § 28; 1993, No. 115 (Adj. Sess.), § 2, eff. March 30, 1994; 2017, No. 50, § 60.)
Subchapter 7 Annual Settlements; Records; Monies
§ 991 Records to be delivered to successor
When a town or town school district office becomes vacant by expiration of the term of office of the incumbent, or otherwise, and a successor is elected or appointed, on demand, he or she shall be entitled to receive from the last incumbent of the office or anyone having possession of the same the records, files, books, and papers of such office, or property of the town or the town school district, as the case may be. A person having such records, files, books, papers, or other property in his or her possession who refuses for ten days after such demand to surrender the same shall be fined $10.00 for each week’s refusal.
§ 992 Annual settlements; penalty
Not less than 25 days before each annual town meeting, all officials and other persons authorized to receive or disburse money belonging to a town shall settle their accounts with the auditors of such town, and the treasurer shall include in such settlement his or her accounts as town school district treasurer. When an officer refuses or neglects to make such settlement, he or she shall be ineligible to reelection for the year ensuing.
§ 993 Money to be paid over; penalty
When a person who has served as a town or a town school district officer does not at the expiration of his or her term of office forthwith pay to the proper treasurer all money in his or her hands belonging to the town or town school district, he or she shall be fined not more than $200.00. The town or town school district, as the case may be, may recover such money of such person in a civil action on this statute.
Subchapter 8 Inspectors of Lumber; Wiring; Weighers of Coal
§ 1031 Inspector of lumber, shingles, and wood
At the request of any party interested, an inspector of lumber, shingles, and wood shall examine and classify the quality of lumber and shingles, measure lumber, shingles, and wood, and give certificates thereof.
§ 1032 Weigher of coal
A weigher of coal shall be sworn and shall not be directly or indirectly interested in the sale of coal. Upon request of the seller or purchaser, he or she shall weigh all coal sold in his or her town.
§ 1033 Inspector of wiring
A municipality may authorize the selectboard, mayor and board of aldermen, or trustees to appoint an inspector of electric wiring and fix his or her compensation.
Subchapter 9 Agent to Convey Real Property
§ 1061 Conveyance of real estate
(a)(1) If the legislative body of a town or village desires to convey municipal real estate, the legislative body shall give notice of the terms of the proposed conveyance by posting a notice in at least three public places within the municipality, one of which shall be in or near the municipal clerk’s office. Notice shall also be published in a newspaper of general circulation within the municipality. The posting and publication required by this subsection shall occur at least 30 days prior to the date of the proposed conveyance. Unless a petition is filed in accordance with subdivision (2) of this subsection, the legislative body may authorize the conveyance.
(2) If a petition signed by five percent of the legal voters of the municipality objecting to the proposed conveyance is presented to the municipal clerk within 30 days of the date of posting and publication of the notice required by subdivision (1) of this subsection, the legislative body shall cause the question of whether the municipality shall convey the real estate to be considered at a special or annual meeting called for that purpose. After the meeting, the real estate may be conveyed unless a majority of the voters of the municipality present and voting vote to disapprove of the conveyance.
(b) As an alternative to the procedures set forth in subsection (a) of this section, the legislative body may elect to have the voters decide, at an annual or special meeting warned for that purpose, whether the real estate should be conveyed. If a majority of the voters of the municipality present and voting vote to approve the proposed conveyance, the real estate may be conveyed.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, the legislative body of a town or village may authorize the conveyance of municipal real estate if the conveyance:
(1) Is directly related to the control, maintenance, construction, relocation, or abandonment of highways.
(2) Is directly related to the control, maintenance, operation, improvement, or abandonment of a public water, sewer, or electric system.
(3) Involves real estate used for housing or urban renewal projects under chapter 113 of this title.
(4) Involves lease land pursuant to chapter 65, subchapter 1 of this title.
(d) Subject to the provisions of subsections (a) and (b) of this section, real estate owned by a city, town, village, or town school district may be conveyed by an agent designated by the legislative body for that purpose, and the conveyance shall be under the hand and seal of the agent. The legislative body shall certify the designation of an agent and have the certificate recorded by the clerk.
(e) Nothing in this section shall be construed to impair or affect the authority or responsibility of any municipality or the legislative body thereof with respect to any real estate held or acquired in a fiduciary capacity.
(f) Nothing in this section shall be construed to impair or affect any provisions in a charter of a town or village involving the conveyance of real estate.
(Amended 1993, No. 151 (Adj. Sess.), § 1; 2017, No. 152 (Adj. Sess.), § 2; 2019, No. 84 (Adj. Sess.), § 2.)
Subchapter 10 Pension System; Insurance
§ 1091 Pension system
A municipality having a population of at least 5,000 according to the latest preceding U.S. census may adopt a pension system for its employees. However, a municipality having a population of less than 5,000 may adopt a pension system for its employees, if such municipality at its annual meeting so votes by a two-thirds vote of the voters present and voting.
§ 1092 Insurance contracts
By its legislative branch, as defined by section 1751 of this title, a municipal corporation may contract in the name of the municipality with an insurance company authorized to do business in this State to secure the benefits of all forms of insurance for the employees of the municipality, and for all forms of liability insurance but not limited to liability insurance to cover motor vehicles owned and operated by the municipality, and drivers thereof, and for fire, extended coverage, general liability insurance to cover public building, premises, and activities of the municipality, and liabilities which may accrue to the municipality under sections 901 and 902 of this title on any terms and conditions as to contributions and costs as the legislative branch shall determine. Provisions for the insurance heretofore made by a municipality are hereby approved. In addition, a municipal corporation may secure insurance to cover liabilities which may accrue to the municipality under section 901 of this title.
(Amended 1959, No. 211, § 2; 1967, No. 266 (Adj. Sess.), § 1, eff. March 6, 1968; 1973, No. 235 (Adj. Sess.), § 2; 1975, No. 122, § 1, eff. April 22, 1975.)
Subchapter 11 Personnel Rules
§ 1121 Authority to adopt
(a) A municipality may adopt rules relating to personnel administration, including the following: job classification, tenure, retirement, pensions, leaves of absence, vacations, holidays, hours of work, group insurance, salaries, layoff, reinstatement, promotion, demotion, dismissal, transfer, injury, settlement of disputes, and appeals.
(b) The personnel rules may apply to any or all employees of a municipality, including officers and employees of a fire department or police department maintained by the municipality. Rules adopted by the selectboard of a town under this subchapter shall not apply to employees of a town school district.
(Added 1969, No. 170 (Adj. Sess.), § 4, eff. March 2, 1970.)
§ 1122 Procedure for adoption
Rules adopted under authority of this subchapter shall be deemed to be administrative and may be adopted by majority vote of the legislative body of a municipality. Sections 1971-1975 of this title shall not apply to rules adopted under this subchapter.
(Added 1969, No. 170 (Adj. Sess.), § 4, eff. March 2, 1970.)
Subchapter 12 Energy Coordinator
§ 1131 Energy coordinator; duties
(a) The legislative body of a municipality may appoint, and determine the length of term for, an energy coordinator.
(b) An energy coordinator shall coordinate existing energy resources in the town and cooperate with the municipal planning commission and with those federal, State, and regional agencies of government which are responsible for energy matters.
(c) An energy coordinator may study and evaluate sources of energy which are alternatives to those presently available with a view toward the more efficient and economical utilization of existing and potential energy resources.
(d) An energy coordinator shall make periodic reports of his or her activities to the legislative body as it may require and may perform such other duties, studies, or examinations as may be required by the legislative body.
(Added 1975, No. 226 (Adj. Sess.), § 3; amended 2007, No. 1, § 1.)
Subchapter 13 Orders or Decisions by Municipal Boards or Commissions
§ 1141 Boards or commissions; orders
Any decision or order approved for issue by a board, commission, committee, agency, or authority of any municipal corporation, including the legislative body of a municipal corporation, which is required by law to be in writing, may be signed by the chair or vice chair on behalf of the issuing body.
(Added 1983, No. 190 (Adj. Sess.), § 3, eff. April 27, 1984.)
Subchapter 14 Budget Committee
§ 1147 Advisory budget committee creation; duties
If a municipality creates an advisory budget committee as provided in 17 V.S.A. § 2646, the committee shall evaluate the municipality’s budget and make recommendations to the selectboard for the budget based on its findings.
(Added 2013, No. 106 (Adj. Sess.), § 2.)
Chapter 35 Town Clerks
§ 1151 Certificate of election; oath
A town clerk shall file with the county clerk a certificate of his or her election or appointment and a copy of his or her official oath on or before six days after election or appointment. The moderator shall sign the certificate if the clerk is elected at an open town meeting. The chair of the board of civil authority shall sign the certificate if the clerk is elected by Australian ballot. The selectboard members shall sign the certificate if the clerk is appointed.
(Amended 1989, No. 200 (Adj. Sess.), § 6.)
§ 1152 Record of proceedings of meetings
The clerk shall record all proceedings of all town meetings and his or her record shall be deemed to be the true and official record of all action taken at that meeting provided it has been approved and attested by any two of the following town officers present at the meeting: moderator, selectboard members, and justices of the peace. The clerk shall request approval within seven days after each meeting and his or her request shall be given prompt consideration. Nothing in this section shall be construed to prohibit use of tape recorders or other recording devices or stenographic service.
(Amended 1969, No. 168 (Adj. Sess.).)
§ 1153 Card indices
All general indices required by law to be kept by a town or city clerk may be kept by the card index system, with the consent and approval of the selectboard or board of aldermen. When so kept, such card index shall provide as full and complete information as is now required by law for the keeping of general indices by a town clerk.
§ 1154 Records; copies
(a) A town clerk shall record in the land records, at length or by accurate, legible copy, in books to be furnished by the town:
(1) deeds;
(2) instruments or evidences respecting real estate;
(3) writs of execution, other writs or the substance thereof, and the returns thereon;
(4) hazardous waste site information and hazardous waste storage, treatment, and disposal certifications established under 10 V.S.A. chapter 159;
(5) underground storage tank information under 10 V.S.A. chapter 59;
(6) municipal land use permits (as defined in section 4303 of this title) or notices of municipal land use permits as provided for in subsection (c) of this section, notices of violation of ordinances or bylaws relating to municipal land use, and notices of violation of municipal land use permits;
(7) denials of municipal land use permits;
(8) permits, design certifications, installation certifications, and other documents required to be filed by the provisions of 10 V.S.A. chapter 64 and the rules adopted under that chapter;
(9) other instruments delivered to the town clerk for recording.
(b) A temporary permit (if defined by the bylaws of the municipality) is not required to be recorded.
(c) A notice of a municipal land use permit or a notice of violation specified in subdivision (a)(6) of this section may be recorded, and if such notice is recorded, it shall list:
(1) as grantor, the owner of record title to the property at the time the municipal land use permit or notice of violation is issued;
(2) as grantee, the municipality issuing the permit, certificate, or notice;
(3) the municipal or village office where the original, or a true, legible copy of the municipal land use permit may be examined;
(4) whether an appeal of such permit, certificate, or notice has been taken;
(5) tax map lot number or other description identifying the lot.
(d) The town clerk shall keep in each book of record an index of reference to the instruments or records in that book.
(Amended 1983, No. 148 (Adj. Sess.), § 13; 1985, No. 66, § 2; 1997, No. 125 (Adj. Sess.), § 1; 1999, No. 46, § 2, eff. May 26, 1999; 2001, No. 133 (Adj. Sess.), § 8; 2003, No. 138 (Adj. Sess.), § 1.)
§ 1154a Records; return postage
Whenever an instrument listed in section 1154 of this chapter is filed or left for record with the town clerk, the town shall bear the costs of returning the original copy of the instrument to the person who filed or left the instrument for record.
(Added 2019, No. 38, § 7.)
§ 1155 Record of trust mortgage
Trust mortgages may be recorded by furnishing the clerk with a printed copy thereof on not smaller than 8 1/4 by 10 3/4 nor larger than 10 1/2 by 16 ledger paper of good quality with good cloth binding which volume after being duly compared with the original mortgage shall be filed, attested by him or her and kept in his or her office as a trust mortgage record. The clerk shall also certify on a blank page of the then current mortgage record book the recording of such mortgage under the provisions of this section and index the same as provided in section 1154 of this title.
§ 1156 Chattel mortgages; conditional sales; discharge of lien
Within 15 days after a chattel mortgage, a sufficient memorandum of a conditional vendor’s lien, or a memorandum of a discharge of such mortgage or lien has been delivered to a town clerk for recording, accompanied by the recording fee provided in 32 V.S.A. § 1671, such clerk shall record such mortgage, lien, or discharge and return the original to the person entitled thereto.
(Amended 2019, No. 38, § 8.)
§ 1157 Duties of town clerk as to chattel mortgages
A town clerk shall procure and keep a book of records for mortgages of personal property and shall keep an alphabetical index of mortgagors and mortgagees. The record and index shall be open to public inspection. The clerk shall record in the book any mortgage, transfer, discharge, or officer’s return of sale upon any mortgage. Reference to the volume and page of the record of the mortgage shall be made by the clerk upon the margin of the record of the return, as well as reference on the margin of the record of the mortgage to the volume and page of the record of the return. When requested, the clerk shall give a certified copy thereof on payment of his or her fees as provided in 32 V.S.A. § 1671 and shall certify the time when the same is received and recorded. Mortgages or deeds of trust conveying both real and personal property shall be recorded only as real estate mortgages, but town clerks shall include in their indices of mortgages of personal property a reference to the record thereof. A copy of the personal mortgage, certified as a true and correct copy by the recording clerk, may be pasted or otherwise permanently attached in the record books, provided that space on the back of the sheet to be pasted is allowed for pasting, and when so done the same shall be deemed to be legally recorded, or if a person leaving the mortgage for record so desires, it shall be copied into the records at length by the town clerk.
(Amended 1969, No. 40, § 2, eff. April 4, 1969.)
§ 1158 Assignment or discharge of mortgage or judgment lien
An assignment or discharge of a mortgage or judgment lien shall be duly recorded in the records of the town. A mortgage or judgment lien may be discharged by the mortgagee, judgment creditor, or assignee of such mortgage or judgment lien in writing on the margin of the mortgage record or judgment lien notice. A satisfaction or assignment of the mortgage or judgment lien recorded elsewhere shall bear a marginal notation of the book and page of the mortgage or judgment lien record and a corresponding cross-reference shall be made on the margin of the mortgage or judgment lien notice record.
(Amended 1979, No. 67, § 4.)
§ 1159 Indorsement of time of receiving instruments
(a) An instrument shall be deemed recorded when the town clerk:
(1) receives the instrument, the recording fee provided in 32 V.S.A. § 1671, and all supporting documents required by statute; and
(2) indorses a certificate of the date and time of reception on the instrument.
(b) Within three days following the date an instrument is indorsed, the clerk shall enter the name or names of the parties, the type of instrument, the date of the instrument, and the date and time of recording in a day book, printed index, or digital index that is open to public inspection. A town clerk may extend the time for entering the information for good cause shown, including reasons related to illness or absence of the clerk.
(Amended 2019, No. 38, § 9.)
§ 1160 Acknowledgements; oath
(a) A town clerk, commissioned as a notary public pursuant to 26 V.S.A. chapter 103, may take acknowledgements of deeds and other instruments throughout his or her county.
(b) In his or her county, he or she may administer oaths in all cases where an oath is required, without being commissioned as a notary public pursuant to 26 V.S.A. chapter 103.
(c)(1) Each town clerk may designate from among the members of his or her staff at least one notary public to be available to perform notarial acts for the public in the town clerk’s office during normal business hours free of charge.
(2) Each individual designated by the town clerk under this subsection shall be commissioned as a notary public pursuant to 26 V.S.A. chapter 103 and shall be exempt from the notary public application fee under that chapter.
(Amended 2019, No. 30, § 26.)
§ 1161 General index
(a)(1) A town clerk shall keep a general index of transactions affecting the title to real estate wherein he or she shall enter in one column, in alphabetical order, the name of the grantor to the grantee and, in a parallel column, the name of the grantee from the grantor, of every deed, conveyance, mortgage, lease, or other instrument affecting the title to real estate, and each writ of attachment, notice of lien, or other instrument evidencing or giving notice of an encumbrance on real estate which is filed or recorded in the town clerk’s office, with the name of the book, volume, or other manner of recording and the page of record in the following form:
| Book | Grantor | Page | Book | Grantee | Page | | --- | --- | --- | --- | --- | --- | | | to | | | from | | | | Grantee | | | Grantor | | | 1 | A. to B. | 1 | 1 | B. from A. | 1 |
(2) If the instrument is executed on behalf of or to convey the interest of another party, the same shall be indexed in the name of the other party as grantor. In case the instrument is executed by more than one grantor and to more than one grantee, the name of each grantor and each grantee shall be indexed. When the party is a natural person the name shall be indexed under the first letter of such person’s surname, and when the party is a corporation the name shall be indexed under the first letter of the first word of its name disregarding articles and initials. For purposes of this section, a defendant against whose property a writ of attachment is filed or a person against whose property a lien is asserted shall be considered a grantor, and a plaintiff filing a writ or a person asserting a lien shall be considered a grantee. The general index may be kept electronically.
(b) For the purposes of this section, “transactions affecting title to real estate” shall include the instruments described in subsections 1154(a) and (b) of this title. Each owner of record title to the property at the time such an instrument is issued shall be listed as the grantor. The State of Vermont shall be listed as the grantee for instruments described in subdivisions 1154(a)(4), (5), and (8) of this title. The municipality issuing the instrument shall be listed as the grantee for instruments described in subdivision 1154(a)(6) of this title.
(Amended 1969, No. 235 (Adj. Sess.), § 1; 1997, No. 125 (Adj. Sess.), § 2; 1999, No. 46, § 3, eff. May 26, 1999; 2001, No. 133 (Adj. Sess.), § 9; 2007, No. 96 (Adj. Sess.), § 11; 2009, No. 91 (Adj. Sess.), § 15, eff. May 6, 2010.)
§ 1162 Indices; liability of clerk and town
A town clerk who neglects to keep in his or her office the indices required by law to be kept by him or her shall be fined $20.00 for each six months’ neglect. A town which, upon such neglect of its town clerk, delays for six months to cause such an index to be completed and kept, shall be fined $50.00 for each six months it so neglects.
§ 1163 Index of attachments
A town clerk shall keep a book in which shall be alphabetically indexed all attachments of personal property lodged in his or her office. Such index shall show the names of the parties to the action in which the attachment is made, the court and date of the court to which the attachment is returnable, and the amount of debt or damages claimed in the writ.
§ 1164 Certified copies; form
(a) A town clerk shall furnish certified copies of any instrument on record in his or her office, or any instrument or paper filed in his or her office pursuant to law, on the tender of fees therefor, and his or her attestation shall be a sufficient authentication of the copies, except that the town clerk shall redact the word “illegitimate” from any copy of a birth certificate he or she furnishes.
(b) A town clerk shall furnish a certified copy of a vital event certificate only if authorized and as prescribed under 18 V.S.A. chapter 101.
(Amended 1959, No. 329 (Adj. Sess.), § 27, eff. March, 1, 1961; 1975, No. 8, § 1; 1979, No. 142 (Adj. Sess.), § 18; 2017, No. 46, § 60, eff. July 1, 2019.)
§ 1165 Files and records available; when
The files and records in the office of the clerk shall be available for inspection upon proper request at all reasonable hours.
§ 1166 Return of name of town treasurer to State Treasurer
Annually, on or before July 1, a town clerk shall transmit to the State Treasurer the name of the town treasurer.
§ 1167 Certification of votes
When at an annual or special meeting a town votes to raise a tax, to borrow money, or to make any appropriation of money, the clerk of such town, within five days thereafter, shall certify such vote to the treasurer of the town and to the chair of the selectboard.
§ 1168 Return of names of listers to Director of the Division of Property Valuation and Review
After each annual meeting, a town clerk shall report forthwith electronically to the Director of the Division of Property Valuation and Review the name of each lister in the town, his or her post office address, and the length of his or her term of office. In like manner, a town clerk shall notify the Director of the Division of Property Valuation and Review of any lister appointed to fill a vacancy.
(Amended 1977, No. 105, § 14(b); 2017, No. 73, § 2, eff. June 13, 2017; 2017, No. 113 (Adj. Sess.), § 155.)
§ 1169 Name and address of first constable to county clerk
After each annual meeting, a town clerk shall certify forthwith to the county clerk the name and post office address of the person elected first constable at such meeting.
§ 1170 Appointment of assistant clerk
After his or her election, a town clerk shall forthwith appoint one or more assistant clerks, for whose official acts he or she shall be responsible, who shall hold office during his or her term of office, or until such appointment is revoked by him or her. Such appointments and revocation shall be recorded in the office of the town clerk.
(Amended 2017, No. 74, § 70.)
§ 1171 Duties of assistant clerk
(a) The assistant clerk shall be sworn and is authorized to perform the recording and filing duties of the town clerk, to issue licenses and certified copies of records, and, in the absence, death, or disability of the town clerk, is further authorized to perform all other duties of the clerk.
(b) If there is a vacancy in the office of town clerk, the authority of the assistant town clerk to perform the duties of the town clerk shall continue until a successor is appointed by the selectboard under section 963 of this title.
(Amended 1967, No. 107, eff. April 14, 1967; 2017, No. 74, § 71; 2017, No. 130 (Adj. Sess.), § 11.)
§ 1172 Assistant clerk; record to county clerk
Such assistant clerk shall deposit with the county clerk a copy of the record of his or her appointment, duly certified by the town clerk making such appointment, and shall also deposit a copy of his or her official oath signed by himself or herself, with a certificate of the magistrate administering the same that he or she has taken such oath.
(Amended 2017, No. 74, § 72.)
§ 1173 Town or village reports
The clerk of a municipality shall supply annually each library in such municipality with two copies of the municipal report, upon its publication. The clerk shall also send to the Vermont State Archives and Records Administration one copy thereof in a manner prescribed by the State Archivist. Officers making these reports shall supply the clerk of the municipality with the copies necessary for him or her to comply with the provisions of this section and section 1174 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 27, eff. March 1, 1961; 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 55; 2009, No. 123 (Adj. Sess.), § 32; 2009, No. 156 (Adj. Sess.), § I.30; 2011, No. 153 (Adj. Sess.), § 37, eff. May 16, 2012; 2013, No. 108 (Adj. Sess.), § 4, eff. April 22, 2014; 2015, No. 23, § 148; 2017, No. 50, § 61.)
§ 1174 Town file
Such clerk shall keep on file in his or her office two or more sets of the annual report of the auditors, which at suitable intervals he or she shall bind in book form.
§ 1175 Permanent service records
Town clerks shall record the honorable discharges or certificates of service of all members of the Armed Forces of the United States, by photographic copy or on forms approved by the Adjutant General of a size and with a margin to permit binding. Upon making such record, the town clerk shall forthwith forward a certified copy thereof to the office of the Adjutant General. Such records shall be arranged or indexed alphabetically, bound, and made a permanent record. Town clerks shall receive a fee of 50 cents for so recording each honorable discharge or certificate of service, as hereinbefore provided, to be paid by the town.
§ 1176 Manuscripts
All books and manuscripts belonging to a town or a town school district, except town histories, published under the authority of a town, shall be kept in the office of the town clerk, unless otherwise provided and shall not be sold or disposed of.
(Amended 1969, No. 289 (Adj. Sess.), § 9.)
§ 1177 Repealed
[Repealed]
1969, No. 289 (Adj. Sess.), § 10.
§ 1178 Safes; vaults
A town not already provided with a fireproof safe or vault of a sufficient size for the effectual preservation of the files and records now in the office of the town clerk, or that may hereafter accumulate there, shall forthwith procure such safe or vault.
§ 1179 Reporting of fees received
Within 30 days after the completion of a town’s fiscal year, each town clerk shall disclose to the public the total amount of fees received as part of his or her compensation during the fiscal year immediately preceding.
(Added 1979, No. 161 (Adj. Sess.), § 15.)
Chapter 36 Municipal Administrative Procedure Act
§ 1201 Definitions
As used in this chapter:
(1) “Contested hearing” means one of the following:
(A) A case in which an applicant for a land use permit under 10 V.S.A. chapter 151 is required to obtain local Act 250 review of municipal impacts by a municipality that has taken steps required under section 4420 of this title to allow it to conduct that local review.
(B) A hearing, under chapter 117 of this title, which will be subject to review on the record, as determined under procedures established in that chapter.
(C) A hearing which a provision of law requires to be heard according to procedures established in this chapter.
(D) A hearing by a municipal body which is not required by law to be conducted according to procedures established in this chapter, but which the municipality elects to conduct in accordance with this chapter.
(2) “Directly or indirectly interested” means a financial or personal involvement in the contested hearing or with any party.
(3) “Local board” means the entity authorized to conduct a contested hearing.
(4)(A) “Party,” for purposes of proceedings under chapter 117 of this title, other than those related to local Act 250 review of municipal impacts, means “interested person,” as defined by subsection 4465(b) of this title.
(B) “Party,” for purposes of local Act 250 review of municipal impacts, means a person whose interests, under relevant provisions of 10 V.S.A. § 6086(a) being reviewed at the municipal level, may be affected by a proposed development or subdivision, as those terms are defined in 10 V.S.A. chapter 151. “Party” for purposes of other proceedings under this chapter, shall have the meaning established under statutes controlling those proceedings.
(C) “Party,” for purposes of other proceedings under this chapter, shall have the meaning established under statutes controlling those proceedings.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995; amended 2003, No. 115 (Adj. Sess.), § 76, eff. Jan. 31, 2005.)
§ 1202 Application
(a) This chapter shall be used by local boards conducting contested hearings, where required by law, and may be used by local boards conducting contested hearings, even where not required by law. Local determinations to use this chapter, unless otherwise provided by law, shall be made by majority vote of those voting at a duly warned special or annual municipal meeting, or may be made on behalf of the municipality by the legislative body.
(b) This chapter creates only procedural rights and imposes only procedural duties. They are in addition to those created and imposed by other statutes.
(c) This chapter provides the minimum due process rights of parties in contested hearings. A local board may grant additional rights to parties so long as the rights of other parties are not substantially prejudiced.
(d) A local board may adopt additional procedural rules not inconsistent with this chapter governing its hearings. The ordinance adoption process established by chapter 59 of this title shall be used for this purpose.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1203 Conflicts of interest
Local boards shall comply with the provisions of 12 V.S.A. § 61(a) when they conduct contested hearings and make findings under this chapter. For purposes of this section, prohibitions referring to those within the fourth degree of consanguinity or affinity shall refer to the person’s spouse, as well as to the person’s and the spouse’s: parent, child, brother, sister, grandparent, or grandchild.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1204 Notice
(a) Initial public notice of any hearing under this chapter shall be provided in accordance with applicable statutes. All parties and interested persons shall be given an opportunity for hearing after reasonable notice.
(b) At any hearing held under this chapter, opportunity shall be given to all parties to respond and present evidence and argument on all issues involved.
(c) If a hearing is to reconvene at a later date, it shall be deemed sufficient to constitute proper notice of that later session, if an announcement made before adjournment of the previous session of the hearing specifies the time, date, and place of that later session.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1205 Procedure at hearing
(a) The chair or vice-chair of the local board shall preside at the hearing. If neither is available, the board shall elect a temporary chair.
(b) The presiding officer may conduct all or part of the hearing by telephone, television, or other electronic means, if each participant in the hearing has an opportunity to participate in, hear, and, if technically feasible, to see the entire proceeding as it is taking place.
(c) The presiding officer shall cause the proceeding to be recorded.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1206 Evidence
(a) All testimony of parties and witnesses must be made under oath or affirmation.
(b) Irrelevant, immaterial, or unduly repetitious evidence shall be excluded. The rules of evidence as applied in civil cases in the Superior Courts of this State shall be followed. When necessary to ascertain facts not reasonably susceptible of proof under those rules, evidence not admissible under those rules may be admitted if it is of a type commonly relied upon by reasonably prudent people in the conduct of their affairs.
(c) When a hearing will be expedited and the interests of the parties will not be prejudiced substantially, any part of the evidence may be received in written form, to expedite the presentation of direct testimony of a witness, provided the witness is available for direct testimony and cross-examination at the hearing on this evidence.
(d) Documentary evidence may be received in the form of copies or excerpts, if the original is not readily available. Upon request, parties shall be given an opportunity to compare the copy with the original.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1207 Ex parte communications
(a) A presiding officer shall not communicate, directly or indirectly, with any party, party’s representative, party’s counsel, or any person interested in the outcome of the proceeding, on any issue in the proceeding, while the proceeding is pending, without notice and opportunity for all parties to participate.
(b) No other members of a local board sitting in a contested hearing shall communicate on any issue in the proceeding, directly or indirectly, with any party, party’s representative, party’s counsel, or any person interested in the outcome of the proceeding, while the proceeding is pending.
(c) A presiding officer who receives an ex parte communication on any issue relating to the proceeding and a member who receives any ex parte communication shall place on the record all written communications received, all written responses to those communications, and a memorandum stating the substance of all oral communications received, all responses made, and the identity of each person making the ex parte communication.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1208 Qualification of members
(a) Members of a local board in a contested hearing shall not participate in the decision unless they have heard all testimony and reviewed all other evidence submitted for the board’s decision.
(b) Members who have not attended every session of the board in a contested hearing may participate in the decision if they have listened to the recording of the testimony they have missed (or read transcripts of this testimony) and reviewed all exhibits and other evidence, prior to deliberation.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1209 Decisions
(a) A final decision in a contested hearing shall be in writing and shall separately state findings of fact and conclusions of law.
(b) Findings of fact shall explicitly and concisely restate the underlying facts that support the decision. They shall be based exclusively on evidence of the record in the contested hearing.
(c) Conclusions of law shall be based on the findings of fact.
(d) The final decision in any case involving local Act 250 review of municipal impacts shall include notice that it constitutes a rebuttable presumption under the provisions of 10 V.S.A. chapter 151, and notice that presumption may be overcome in proceedings under 10 V.S.A. chapter 151.
(e) The presiding officer shall cause copies of the decision to be delivered to each party.
(f) Transcriptions of the proceedings of contested hearings shall be made upon the request and upon payment of the reasonable costs of transcription by any party.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
§ 1210 Appeals
Appeals under this chapter shall be taken in the manner established for the underlying proceedings to which this chapter is applied.
(Added 1993, No. 232 (Adj. Sess.), § 44, eff. March 15, 1995.)
Chapter 37 Town, City, or Village Managers
§ 1231 “Town” construed; officers
The word “town” as used in this chapter may be construed to include a city or an incorporated village. Where powers are given to or duties imposed upon a selectboard with reference to a town, the trustees of a village and mayor and board of aldermen of a city shall have the same powers and perform like duties in relation to their respective village or city.
§ 1232 Appointment; union of towns
The selectboard of a town adopting the provisions of this chapter shall forthwith appoint a general town manager, who may or may not be a resident of the town for which he or she is appointed. Two or more towns may vote to form a union to employ the same manager.
§ 1233 Qualifications; authority of selectboard
Such a manager shall be selected with special reference to his or her education, training, and experience to perform the duties of such office and without reference to his or her political belief. In all matters he or she shall be subject to the direction and supervision and shall hold office at the will of such selectboard, who, by majority vote, may remove him or her at any time for cause.
§ 1234 Oath; bond
Before entering upon a manager’s duties, a manager shall be sworn to the faithful performance of the manager’s duties and shall have crime insurance coverage or give a bond to the town in the amount and with the sureties as the selectboard may require.
(Amended 2021, No. 179 (Adj. Sess.), § 23, eff. July 1, 2022.)
§ 1235 General authority
Subject to the requirements of this chapter, he or she shall have general supervision of the affairs of the town, be the administrative head of all departments of the town government, and shall be responsible for the efficient administration thereof.
§ 1236 Powers and duties in particular
The manager shall have authority and it shall be his or her duty:
(1) To cause duties required of towns and town school districts and not committed to the care of any particular officer, to be duly performed and executed.
(2) To perform all duties now conferred by law upon the selectboard, except that he or she shall not prepare tax bills, sign orders on the general fund of the town, call special or annual town meetings, lay out highways, establish and lay out public parks, make assessments, award damages, act as member of the board of civil authority, nor make appointments to fill vacancies which the selectboard is now authorized by law to fill; but he or she shall, in all matters herein excepted, render the selectboard such assistance as it shall require.
(3) To be the general purchasing agent of the town and purchase all supplies for every department thereof; but purchases of supplies for departments over which such manager is not given control, and of the town school district, shall be made according to requisition therefor by such departments or school directors.
(4) To have charge and supervision of all public town buildings and repairs thereon, and all building undertaken by the town, unless otherwise provided for by the selectboard, shall be done under his or her charge and supervision.
(5) To perform all the duties now conferred by law upon the road commissioner of the town, including the signing of orders; provided, however, that when an incorporated village lies within the territorial limits of a town which is operating under a town manager, and such village fails to pay to such town for expenditure on the roads of the town outside the village, at least 15 percent of the last highway tax levied in such village, the legal voters residing in such town, outside such village, may elect one or two road commissioners who shall have and exercise all powers of road commissioner within that part of such town as lies outside such village.
(6) [Repealed.]
(7) To do all the accounting for all of the departments of the town and of the town school districts when the board of school directors so request.
(8) To supervise and expend all special appropriations of the town, as if the same were a separate department of the town, unless otherwise provided for by the selectboard.
(9) To have charge, control, and supervision of the following matters:
(A) the police department, if any, and shall appoint and may remove the officers thereof and shall fix their salaries;
(B) the fire department, if any, and shall appoint, fix the compensation of, and may remove all officers and employees thereof;
(C) the system of licenses, if any, not otherwise regulated by law;
(D) the system of sewers and drainage, if any, except the making of assessments therefor;
(E) the lighting of streets, highways, and bridges;
(F) the sprinkling of streets and highways and laying of dust, except the making of assessments therefor;
(G) the maintenance of parks and playgrounds.
(10) To collect all taxes due the town and to perform all the duties now conferred by law upon the collector of taxes, if the town so votes. Such manager shall continue so to do until the town votes otherwise at a meeting duly warned for the purpose of voting on such question. For the collection of taxes, a town manager may charge and collect the same fees as a collector of taxes, and the fees so collected shall be paid into the treasury of the town.
(Amended 1967, No. 147, § 53(b), eff. Oct. 1, 1968; 2011, No. 155 (Adj. Sess.), § 9; 2017, No. 130 (Adj. Sess.), § 12.)
§ 1237 Examination of departments
The selectboard may cause the affairs of any town office or the conduct of any officer or employee thereof to be examined. It may compel the attendance of witnesses and the production of books, papers, and other evidence. The manager shall have access to all town books and papers for information necessary for the proper performance of his or her duties.
§ 1238 Additional duties
The powers, duties, and liabilities imposed upon any other departments of the town inconsistent with the provisions of this chapter shall be suspended and shall be conferred and imposed upon the manager.
§ 1239 Compensation; how fixed
The manager shall receive such pay as may be fixed by the selectboard, unless otherwise specifically voted by the town.
§ 1240 Operation of chapter
The provisions of this chapter shall not become operative in a town unless the same are approved and adopted by a majority of the legal voters of such a town present and voting at an annual or special meeting as hereinafter provided.
§ 1241 Petition; warning
When voters, in number equal to five percent of the registered voters in town, petition the selectboard in writing to adopt or rescind the town manager form of governance, the warning for the annual or special meeting that shall be called upon such petition shall contain an article in substantially the form set forth in section 1243 of this chapter.
(Amended 1985, No. 196 (Adj. Sess.), § 13; 2019, No. 67, § 21.)
§ 1242 Revocation
A town that has adopted the provisions of this chapter may reject the same by a majority vote of the legal voters present and voting at a special or an annual meeting, provided a proper article therefor is inserted in the warning of such meeting. If approved, such a vote shall become effective 30 days after the date of its adoption.
(Amended 1985, No. 198 (Adj. Sess.), § 1.)
§ 1243 Method of voting
A town may vote at an annual or special meeting to adopt or rescind the provisions of this chapter A vote on the question shall be in substantially the following form:
“Shall the [town name] [adopt/rescind] the town manager form of governance in accordance with the provisions of chapter 37 of Title 24 of the Vermont Statutes Annotated?”
(Amended 2019, No. 67, § 21.)
Chapter 39 Incorporated Villages
§ 1301 Establishment of villages
Upon a petition of a majority of the voters in town meeting residing in a village containing 30 or more houses, the selectboard shall establish the bounds of such village and cause a description thereof, by its name and bounds, to be recorded in the office of the town clerk and posted in two or more public places in such village. The residents in such village shall thereupon become a body politic and corporate with the powers incident to a public corporation, be known by the name given in such description, by that name may sue and be sued, and hold and convey real and personal estate for the use of the corporation.
§ 1302 Alteration of boundaries
Such corporation may alter the boundaries of such village, with the consent of the persons included in or excluded from the same by such alteration, and a record of such alteration shall be made by the town clerk. The inhabitants included within the limits of such village shall remain inhabitants of the town the same as though a corporation had not been formed.
§ 1303 Voters
Persons residing within the limits of an incorporated village who are qualified voters in town meeting shall be voters in village meeting.
§ 1304 First meeting; officers
(a) Within 60 days after record of its name and bounds has been made, the voters in such village shall meet in the village. Notice of the day, hour, and place of the meeting, signed by the town clerk, or, upon his or her default, by a selectperson, shall be posted in four public places in the village and published once in each newspaper published therein, at least ten days previous thereto. The meeting may be called to order by the officer signing the notice.
(b) At such meeting, or at an adjournment thereof, the corporation shall elect a presiding officer, a clerk, five trustees, a treasurer, and a collector of taxes and may elect a tree warden and chief engineer who shall hold their offices until the first annual meeting and until others are elected and qualified. Any qualified and eligible voter of the town in which such village is situated may be elected as such tax collector, chief engineer, clerk, treasurer, or presiding officer.
(Amended 1961, No. 11, eff. March 3, 1961; 2003, No. 90 (Adj. Sess.), § 1.)
§ 1305 Meetings; warnings
After the first election, a meeting of such corporation shall be held in each year at the time and place designated in its bylaws, to elect officers and for the transaction of business specified in the warning of such meeting. Special meetings may be called by the trustees. Warnings shall be signed by the clerk, shall specify the business to be transacted as the trustees direct, shall be published in a newspaper of general circulation in the village, and shall be posted in two public places in such village, not more than 40 days nor less than 30 days before such meeting. Such warning shall be recorded in the office of the clerk before it is posted.
(Amended 1985, No. 196 (Adj. Sess.), § 20.)
§ 1306 Oaths and bonds of officers
The clerk, treasurer, and collector of such corporation shall be sworn. The treasurer and collector shall have crime insurance coverage or give a bond to the corporation in such sum and with such sureties as are prescribed and approved by the trustees, conditioned for the faithful performance of their duties.
(Amended 2021, No. 179 (Adj. Sess.), § 24, eff. July 1, 2022.)
§ 1307 Duties of clerk; fees
The clerk shall keep records of the proceedings of such corporation and give copies of the same when required. He or she shall be paid therefor the same fees as a town clerk.
§ 1308 Duties of trustees; vacancies
The trustees of a village incorporated under general or special law shall see that its bylaws are executed, direct prosecutions for breaches thereof, and generally shall take care of the affairs of such corporation and perform the duties legally enjoined on them by such corporation. In case of the death, removal, absence, or incapacity of the clerk, the trustees may designate one of their number to perform his or her duties, and may fill a temporary vacancy in any office of such corporation, until an election is had. A record of such appointment shall be made in the office of the clerk of the village.
§ 1309 Taxes; assessment and collection
At a meeting legally warned for that purpose, corporations formed under this subchapter may vote a tax upon the taxable estate therein or may vote a specific amount to be appropriated for the lawful purposes of the corporation. If a corporation votes a specific amount to be appropriated, the trustees shall, after the grand list book has been computed and lodged, set the tax rate necessary to raise the specific amount voted. The trustees shall make out and deliver to the collector a tax bill, with a warrant for its collection, and the collector shall have the same powers to collect such tax bill as a collector of town taxes.
(Amended 2003, No. 90 (Adj. Sess.), § 2.)
§ 1310 Bylaws
An incorporated village may enact such bylaws and regulations as are expedient, not inconsistent with law, particularly such as relate to streets, sidewalks, lanes, commons, shade and ornamental trees and lights thereon, slaughterhouses and nuisances, police protection, restraint of animals, erection and regulation of buildings and hay scales, the preservation of buildings, with the right of directing alterations in stoves, fireplaces, and causes from which danger from fire may be apprehended, fire engines and other apparatus necessary for the extinguishment of fire, establishment and regulation of fire companies, and to the manufacture and safekeeping of ashes, explosives, and combustibles.
§ 1311 Forfeiture for breach of bylaws
An incorporated village may fix the amount of forfeitures for the breach of bylaws, not exceeding $20.00 for any one offense, to be recovered by a civil action on this statute. Such action shall be brought within 90 days from the time the offense is committed, before a Criminal Division of the Superior Court.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 79, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 238; 2017, No. 74, § 73.)
§ 1312 Damages in laying out street; appeal
The trustees of an incorporated village may lay out a street, lane, or walk within its limits, and may appraise the damages. An appeal may be taken by landowners as provided when land is taken for highways.
§ 1313 Village may indemnify officers
An incorporated village, by vote, may indemnify a duly appointed public or peace officer of the village against legal proceedings for injuries committed by him or her while in the lawful discharge of his or her official duties. If an action is commenced against such officer, upon vote of such village, the trustees may defend such action at its expense.
§ 1314 Powers of officers
Where acts of incorporation or special laws applicable to villages give to any officers of the village powers conferred upon the selectboards of towns by general law, such village officers may exercise such powers within the limits of the village.
§ 1315 Appointment of manager
An incorporated village may avail itself of the provisions of chapter 37 of this title so far as applicable, if a majority of the voters thereof present and voting at any annual or special meeting so vote under a proper article in the warning therefor as in such chapter provided. The trustees of a village adopting the provisions of such chapter shall have the same powers in respect to the employment, direction, supervision, and discharge of a manager and the fixing of his or her bond and salary as are therein conferred upon a selectboard.
§ 1316 Annexation of adjacent territory to villages
The trustees of an incorporated village may petition in writing a judge of the Superior Court of the county in which such village is situated, to have commissioners appointed to determine the advisability of enlarging the limits of such village, by including territory of the town in which such village is situated. Thereupon, such judge shall appoint three disinterested freeholders, who shall act as such commissioners.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 1317 Annexation; procedure
The commissioners shall give notice of the time and place of hearing, hear parties interested, and decide whether such enlargement is advisable. When they decide in favor of the annexation, they shall fix the bounds of the territory to be annexed. If such village is divided into wards, they shall determine in what ward or wards such annexed territory shall be placed, or, if necessary, create additional wards out of the same. They shall cause their report, containing a statement of the bounds fixed for such annexed territory and of the new and altered wards, if any, to be recorded in the office of the town clerk.
(Amended 2017, No. 74, § 74.)
§ 1318 Annexation; fix time for voting
At the time of making their decision, if they decide in favor of enlargement, the commissioners shall appoint a time and place at which persons residing within the bounds of the territory sought to be annexed, as fixed by the commissioners, shall meet to vote upon the question of annexation. Such commissioners shall give public notice of such meeting in such manner as they see fit.
(Amended 2017, No. 74, § 75.)
§ 1319 Voting in territory proposed to be annexed
At such meeting, the residents of such territory who are voters in town meeting may vote on the question of annexation. When a majority of such residents in number and amount of grand list vote in favor of such annexation, such vote shall be recorded in the office of the town clerk.
§ 1320 Village to vote on question of annexation
Upon the record of such favorable vote, the trustees of such village shall cause a village meeting to be warned. At such meeting, the question of annexation shall be submitted to the voters of such village. When a majority in number of the voters at such meeting vote in favor of such annexation, such vote shall be recorded in the office of the town clerk. From the date of such record, the territory sought to be annexed shall become a part of such village.
§ 1321 Rights of voters in annexed territory
Persons residing in such annexed territory, who, at the time of such annexation, are voters in village meeting, shall forthwith become legal voters of such village and of the wards in which they reside, subject to the general provisions of its charter. A new or altered ward of such village shall be entitled to the same officers and privileges as other wards thereof.
Chapter 41 Unified Towns and Gores in Essex County
§ 1351 Definitions
In this chapter, unless the context otherwise requires:
(1) “Appraisers” means the appraisers for the unified towns and gores in Essex County, designated in section 1355 of this title.
(2) “Board of Governors” means the Board of Governors for the unified towns and gores in Essex County, elected in section 1351a of this title.
(3) “Gores” means the unified towns and gores in Essex County, or any one of them.
(4) “Supervisor” means the supervisor for the unified towns and gores in Essex County, appointed in section 1351b of this title.
(Added 1967, No. 331 (Adj. Sess.), § 1, eff. Jan. 1, 1969; amended 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; 2003, No. 96 (Adj. Sess.), § 1; 2005, No. 105 (Adj. Sess.), § 1.)
§ 1351a Board of Governors
(a) The Board of Governors shall be composed of three individuals residing in the gores. At each annual meeting, the residents of the gores shall elect a member, who shall serve for a term of three years, for each expired term. A vacancy on the Board shall be filled at the next annual meeting in a manner to retain staggered terms.
(b) The residents of the gores may vote at an annual or special meeting to elect not more than two additional members of the Board of Governors for terms of two years each. When the additional members are first elected, one shall be elected for one year and the other member shall be elected for two years. Terms of these additional members shall end on annual meeting days. If the additional members are elected at a special meeting, the term of those elected for one year shall expire on the next annual meeting day and the term of those elected for two years shall expire on the second annual meeting day following their election. A vote establishing additional members of the Board of Governors shall remain in effect until the residents of the gores vote to discontinue the positions at an annual or special meeting duly warned for that purpose.
(Added 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; amended 2003, No. 96 (Adj. Sess.), § 2.)
§ 1351b Functions and duties of Board of Governors
(a) The Board of Governors shall hire, direct, or fire one or more supervisors for the gores who shall reside in Essex County, and who shall not be a current member of the Board of Governors. The Board of Governors shall oversee the Supervisor or supervisors in the execution of the Supervisor’s functions and duties.
(b) The Board of Governors shall appoint the appraisers. Each of the appraisers shall be a resident of Essex County.
(c)(1) The Board of Governors shall perform the same functions and duties for the gores that a selectboard, school board, and board of civil authority perform for their municipality.
(2) Except as otherwise specifically provided, the Board of Governors shall enjoy the same powers, privileges and immunities, and fees, and shall be subject to the same obligations, limitation, liabilities, and penalties in respect to the gores, as a selectboard, school board, and board of civil authority enjoy and are subject to in respect to their municipality.
(3) The unified towns and gores of Essex County shall be a “municipal corporation” under subsection 1751(a) of this title and shall have the authority to incur debt, issue bonds, and borrow money in accordance with the provisions of chapter 53 of this title.
(Added 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; amended 2003, No. 96 (Adj. Sess.), § 3; 2007, No. 4, § 1; 2017, No. 98 (Adj. Sess.), § 1, eff. April 11, 2018.)
§ 1352 Repealed
[Repealed]
1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000.
§ 1353 Functions and duties of supervisor
(a) The supervisor or supervisors shall perform the same functions and duties for the gores that the truant officer, constable, treasurer, collector of taxes, and town clerk perform for their municipality.
(b) Except as otherwise specifically provided, the supervisor or supervisors shall enjoy the same powers, privileges, immunities, and fees, and shall be subject to the same obligations, limitations, liabilities, and penalties in respect to the gores, as the truant officer, constable, treasurer, collector of taxes, and town clerk enjoy and are subject to in respect to their municipality.
(Added 1967, No. 331 (Adj. Sess.), § 1, eff. Jan. 1, 1969; amended 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; 2003, No. 96 (Adj. Sess.), § 4.)
§ 1354 Accounts; annual report
The supervisor or supervisors shall maintain an account showing in detail the revenue raised and the expenses necessarily incurred in the performance of the supervisor’s duties. The supervisor or supervisors shall prepare an annual fiscal report on or before July 1 which shall conform to procedural and substantive requirements to be established by the Board of Governors and which, upon approval by the Board of Governors, shall be distributed to the residents of the gores.
(Added 1967, No. 331 (Adj. Sess.), § 1, eff. Jan. 1, 1969; amended 1969, No. 219 (Adj. Sess.), § 1, eff. March 27, 1970; 1977, No. 146 (Adj. Sess.), § 3; 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; 2003, No. 96 (Adj. Sess.), § 5; 2013, No. 142 (Adj. Sess.), § 37; 2015, No. 131 (Adj. Sess.), § 27.)
§ 1355 Appraisers
Subject to the approval of the Director of the Division of Property Valuation and Review, the supervisor shall appoint for the year 1973: one appraiser for a term of three years; one appraiser for a term of two years; and one appraiser for a term of one year. For each year thereafter, the Board of Governors shall annually appoint one appraiser for a term of three years. The Board of Governors may revoke any appointment made under this section and shall, subject to the approval of the Director of the Division of Property Valuation and Review, fill any vacancy in the Board of Appraisers.
(Added 1967, No. 331 (Adj. Sess.), § 1, eff. Jan. 1, 1969; amended 1973, No. 58, § 2, eff. April 1, 1973; 1977, No. 105, § 14(b); 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000.)
§ 1356 Functions and duties of Board of Appraisers
(a) The Board of Appraisers shall perform the same functions and duties for the unified towns and gores of Essex County that listers perform for their municipality.
(b) Except as otherwise specifically provided, the appraisers shall enjoy the same powers, privileges, immunities, and remuneration and shall be subject to the same obligations, limitations, liabilities, and penalties in respect to the unified towns and gores of Essex County as listers enjoy and are subject to in respect to their municipality.
(Added 1967, No. 331 (Adj. Sess.), § 1, eff. Jan. 1, 1969; amended 1999, No. 139 (Adj. Sess.), § 4, eff. May 18, 2000; 2017, No. 74, § 76.)
Chapter 43 Unorganized Towns and Gores
§ 1401 Appraisers; appointment
Subject to the approval of the Governor, the Director of the Division of Property Valuation and Review shall appoint biennially on the first Tuesday of March a board of three appraisers for the unorganized towns and gores in each county, with power to revoke any such appointment and to fill any vacancy in such board.
(Amended 1977, No. 105, § 14(b).)
§ 1402 Appraisers; oath; file
Each appraiser shall take and subscribe to an oath in form and substance as required of listers in towns and file the same in the office of the county clerk where he or she is to exercise the duties of his or her office.
(Amended 2017, No. 74, § 77; 2017, No. 113 (Adj. Sess.), § 156.)
§ 1403 Supervisors; appointment
Biennially, on February 1, to hold office for two years therefrom, the Governor shall appoint and commission one supervisor for the unorganized towns and gores in each county who shall give a bond to the State. Such supervisor shall not be an appraiser.
§ 1404 Supervisors; commission and oath; record
The commission and oath of each supervisor shall be recorded in the office of the county clerk where such towns and gores are situated.
(Amended 2017, No. 74, § 78.)
§ 1405 Supervisor not liable for mistakes
A supervisor shall not be liable to an action which may accrue in consequence of any illegality in the assessment or apportionment of a tax, or any mistake, mischarge, or overcharge in any tax bill, or any illegality or informality in any tax bill, warrant, or other precept furnished him or her for the collection of a tax.
§ 1406 Taxes expended; how
Upon allowance of the accounts of supervisors and appraisers for unorganized towns and gores, the Commissioner of Finance and Management shall certify forthwith the amount as allowed to the State Treasurer and the balance, if any, of the monies received from any supervisor, after deducting the amount of the county tax and regional planning costs, if any. The amount of such supervisors’ and appraisers’ accounts, so certified, shall be used for the laying out, construction, and maintenance of highways and bridges in the unorganized towns and gores for which the supervisor is appointed, to be expended by and under the direction of the Secretary of Transportation, in the same manner as State transportation appropriations. The portion of the money which remains unexpended for more than one year may be carried forward in the supervisors’ accounts for like purposes.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1971, No. 78, § 1, eff. April 16, 1971; 1987, No. 243 (Adj. Sess.), § 29, eff. June 13, 1988; 1993, No. 172 (Adj. Sess.), § 30; 2009, No. 50, § 92.)
§ 1407 Abatement of taxes
Appraisers for unorganized towns and gores shall have the same power to abate a tax in the hands of a supervisor that the board for the abatement of town taxes has to abate town taxes, and shall certify such abatement to the State Treasurer.
§ 1408 Supervisor; general duties
The supervisor shall act as a selectperson in matters of road encroachment, planning, and related bylaws, as school director and truant officer, as constable, as collector of taxes, as town clerk in the matter of licensing dogs, and as town clerk and board of civil authority in the matter of tax appeals from the decisions of the board of appraisers.
(Amended 1967, No. 147, § 36, eff. Oct. 1, 1968; 1971, No. 78, § 2, eff. April 16, 1971; 2011, No. 155 (Adj. Sess.), § 19.)
§ 1409 Supervisor’s account
Quarterly, on the first Tuesday in February, May, August, and November, each supervisor shall render to the Commissioner of Finance and Management an account showing in detail the time spent and expenses necessarily incurred by him or her in the performance of his or her duties, except such duties as relate to the collection of taxes or are compensated by fees. Such account, as allowed by the Commissioner of Finance and Management, shall be paid by the State out of the avails of the taxes assessed under 32 V.S.A. § 4962.
(Amended 1983, No. 195 (Adj. Sess.), § 5(b).)
Chapter 45 Voluntary Consolidation of Towns
§ 1421 Appointment of committee
The selectboard of any town may appoint a committee to study the feasibility and desirability of the consolidation of such town, or parts of such town, with another town, or towns, or parts thereof.
(Added 1963, No. 146, § 1.)
§ 1422 Assistant judges; cooperation with committee
A committee appointed under the authority of this chapter shall confer with the assistant judges of the Superior Court within which county the town is located, who shall cooperate with such committee to study the feasibility and desirability of the consolidation of such town with another town, or towns, or parts thereof, and if the assistant judges decide that there is a reasonable possibility of such a consolidation and that it would be beneficial to the inhabitants of the areas proposed to be consolidated, they shall suggest to the selectboard of such other town or towns that they appoint a committee or committees to consider the proposed consolidation.
(Added 1963, No. 146, § 2; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 1423 Town committees; joint plan for consolidation
(a) Any committee appointed at the suggestion of the assistant judges shall meet and confer with the committee of the town proposing consolidation, and the two committees acting jointly, if they determine that a consolidation would promote the interests of the residents of the areas to be consolidated and that greater governmental efficiency would result, shall draw a detailed plan for a consolidation, setting forth the boundaries of the areas to be consolidated, scheduling and listing land, buildings, and equipment owned by each town which will not be needed after consolidation and placing a fair market value thereon and scheduling and listing land, buildings, and equipment deemed necessary for the areas to be consolidated. They shall also schedule and list the liabilities of each town and draw up a balance sheet showing the true assets and liabilities of the proposed consolidated town taking into consideration the value of the land, buildings, and equipment which will not be needed after consolidation.
(b) Any plan for consolidation may provide for the establishment of one or more of the towns consolidating as a village within the consolidated town, and for the continuance of any zoning ordinances in effect in such town as village ordinances and, in case such town has a bonded debt, for special village tax levies for the payment thereof. Any plan may also provide that school districts within the areas to be consolidated may be established as incorporated school districts within the consolidated town.
(Added 1963, No. 146, § 3.)
§ 1424 Approval by assistant judges
Any plan drawn up as provided in section 1423 of this title shall be submitted to the assistant judges for their approval, and if they find that the plan, if carried out, would result in greater governmental efficiency for the areas involved they shall so notify the selectboard of the towns involved in the proposed consolidation and direct them to publish the plan in their respective towns and to call town meetings for the purpose of voting in said town upon the acceptance or rejection thereof. In the consideration of any consolidation plan submitted to them the assistant judges shall have due regard to the topography of the areas, the ease of transportation, the economic and social patterns, and whether a proposed consolidation would promote the interest of the inhabitants of the areas proposed to be consolidated.
(Added 1963, No. 146, § 4.)
§ 1425 Consolidation plan; publication; voting
When any plan of consolidation has been approved by the assistant judges, the selectboard of each of the towns involved shall publish such plan by posting a copy of the same in at least three public places in each town for three consecutive weeks and causing the same to be published once a week for three consecutive weeks in a newspaper in general circulation in such town. Within 30 days after such publication the selectboard shall call a town meeting of each town to be held on the same day for the purpose of voting on the proposed consolidation. The voting shall be by ballot and shall be held at the usual polling place in each town and the polls shall be open from 6:00 A.M. to 6:00 P.M.
(Added 1963, No. 146, § 5.)
§ 1426 Voting qualifications
The qualifications for voting on any proposed consolidation shall be the same as those for the election of town officers.
(Added 1963, No. 146, § 6.)
§ 1427 Result of vote; certification
The town clerk of each town voting on a proposed consolidation shall certify the result of the vote to the county clerk, and if the majority of voters in each of the respective towns involved shall have voted in favor of the plan, the county clerk shall so certify to the Secretary of State who shall report to the General Assembly then or next in session, submitting the detailed plan so approved by the towns for its consideration.
(Added 1963, No. 146, § 7.)
§ 1428 Consolidated town; first meeting
If a new consolidated town shall be established by the General Assembly, the county clerk of the county in which such consolidated town is located shall call a meeting of the qualified voters of such town, who shall be the residents of the consolidated areas who were qualified to vote at the last town meeting of their former respective towns, who shall proceed to elect a slate of town officers to serve until the next annual town meeting.
(Added 1963, No. 146, § 8.)
§ 1429 State Treasurer; duties
The State Treasurer shall act as fiduciary for any towns consolidated under the provisions of this chapter. He or she shall determine the bonds of the consolidating towns outstanding, shall give written notice to the consolidated town not less than 30 days before each due date of interest and principal due to be paid by such consolidated town, and shall bill and collect each amount so notified. Funds so collected shall be held by him or her and applied only to the payment of such bonds or of bonds of the consolidated town issued in exchange therefor.
(Added 1963, No. 146, § 9.)
§ 1430 Consolidation of areas in different counties
Should any proposed consolidation involve towns or parts of towns situated in different counties, it shall be the duty of the assistant judges of both counties to act jointly in carrying out the purposes of this chapter. Upon certifying a favorable vote on a proposed consolidation to the Secretary of State they shall also recommend within which county the proposed consolidated town should be included.
(Added 1963, No. 146, § 10.)
Chapter 47 Municipal Lines
§ 1461 Location or alteration of municipal lines; monuments
(a) When the legislative bodies of adjoining municipalities are able to agree as to the location of a municipal line, each legislative body shall vote in meetings duly warned for the purpose to adopt the location. Prior to the vote, each legislative body shall hold at least one public hearing duly warned for the purpose of informing the public of, and allowing public comment on, the location of the line. Following the meetings, the legislative bodies shall conduct a, or ratify an existing, survey of the municipal line and file certified copies of the minutes of the meetings, and the survey, and a list of property owners, the legal location of whose property is changed by the agreement, with the Secretary of State, the clerk of each of the municipalities, and the Vermont Enhanced 911 Board.
(b) When the legislative bodies of adjoining municipalities are unable to agree as to the location of a municipal line, or in the absence of a clearly definable charter line, the legislative bodies shall sign a written agreement to submit to arbitration pursuant to 12 V.S.A. chapter 192.
(1) If an award of arbitration does not alter a municipal line, the award shall be filed with the Secretary of State and the clerk of each of the municipalities.
(2) If an award of arbitration would result in an alteration of a municipal line, the award shall require that a survey be conducted of the municipal line and apportion the cost of the survey between or among the respective municipalities as deemed appropriate. Following the survey, one or more of the legislative bodies shall petition the General Assembly to adopt the alteration of the municipal line pursuant to the survey. Following enactment of legislation which alters a municipal line, the legislative bodies shall file the survey and a list of property owners, the legal location of whose property is changed by the award, with the Secretary of State, the clerk of each of the municipalities, and the Vermont Enhanced 911 Board. Each legislative body of the adjoining municipalities shall post a notice of the petition to the General Assembly that specifies the nature and extent of the proposed legislation in at least two public places and in the town clerk’s office at least three weeks prior to filing the petition.
(c) When the legislative bodies of adjoining municipalities are able to agree as to the location of a municipal line and one or more of the legislative bodies believes that alteration of the existing line or the establishment of a new line is necessary, the legislative bodies shall conduct a survey of the new municipal line. Following the completion of the survey, one or more of these legislative bodies shall petition the General Assembly to establish the location of the municipal line. Following the enactment of legislation which ratifies the alteration of the municipal line, the legislative bodies shall file the survey and a list of property owners, the legal location of whose property is changed by the legislation, with the Secretary of State, the clerk of each of the municipalities, and the Vermont Enhanced 911 Board. Each legislative body of the adjoining municipalities shall post a notice of the petition to the General Assembly that specifies the nature and extent of the proposed legislation in at least two public places and in the town clerk’s office at least three weeks prior to filing the petition.
(d) When the General Assembly enacts legislation which ratifies a survey of a municipal line, it may appropriate funds sufficient to monument those municipal lines at the points on the municipal lines where the lines change direction. If the legislative body of a municipality desires additional monuments, it shall provide funds for those monuments at the expense of the municipality.
(e) A survey required by this section shall be conducted by a land surveyor licensed in this State.
(f) The Secretary of State, in consultation with the Agency of Transportation, shall develop a process for requesting proposals for surveying for use by municipalities.
(g) Upon receipt of a list of property owners filed pursuant to subsection (a), (b), or (c) of this section, a municipal clerk shall file the list in the land records of the municipality and shall place in the grantee index of those records the names of property owners whose land or portion thereof has been added to the municipality and in the grantor index of those records the names of property owners whose land or portion thereof has been subtracted from the municipality.
(Amended 1967, No. 241 (Adj. Sess.), § 2, eff. Feb. 13, 1968; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2005, No. 102 (Adj. Sess.), § 1.)
§§ 1462-1464 Repealed
[Repealed]
2005, No. 102 (Adj. Sess.), § 2.
Chapter 49 Merger of Municipalities
§ 1481 Definitions
The term “municipalities” as used in this chapter means cities, incorporated villages, special purpose districts, and school districts.
(Added 1965, No. 184, § 3.)
§ 1482 Preliminary plan
A plan of merger shall be prepared which shall be approved by a majority of the legislative body of each of the parties to the proposed merger before being promulgated.
(Added 1965, No. 184, § 2(a).)
§ 1483 Contents of plan
The plan of merger shall include provisions relating to structure, organization, functions, operation, finance, property, and other appropriate matters; shall include special provisions contained in a charter of any municipality included in the plan, which provisions are peculiar to that municipality, and which it is desired to retain as charter provisions of the consolidated municipality; and shall include adequate provisions for the satisfaction of all obligations of the parties concerned. The plan shall provide that any area or group of voters in the consolidated municipality or town may have special services, not common to all the voters in the municipality or town, provided for them, if so voted. All costs of whatever nature required to support these special services shall be paid for by the taxpayers receiving these services, by a tax on their grand list, to be assessed annually by the selectboard or the equivalent officers of a municipality, or in such other manner as the selectboard or the equivalent officers of a municipality shall determine. If the costs are to be paid by a tax, such tax shall be paid and collected in the same manner as other taxes and such tax assessed on their grand list shall be a lien thereon.
(Added 1965, No. 184, § 2(b); amended 1966, No. 31 (Sp. Sess.), § 1, eff. March 12, 1966.)
§ 1484 Notice and hearing
Not less than 30 days prior to the meetings referred to in section 1485 of this title, copies of the plan of merger shall be posted in three or more public places in each of the areas involved. Two public hearings on the proposed plan of merger shall be held at intervals of two weeks in each of the areas involved. The later hearings shall be held not less than five days before the meetings referred to in section 1485 of this title. Notices of the hearings shall be advertised in at least three issues of a newspaper of general circulation in the town. The last advertisement shall appear not later than three days before the final public hearing.
(Added 1965, No. 184, § 2(c).)
§ 1485 Vote of approval
(a) Adjoining municipalities within a town may merge upon the approval of a plan of merger by a majority vote of each municipality concerned at a meeting duly warned for that purpose and held in each of such municipalities.
(b) One or more municipalities within a town may merge into the town upon the approval of a plan of merger by a majority vote of the municipality or municipalities and the town at separate meetings duly warned for that purpose and held in each of the areas concerned.
(c) When approved by Australian ballot by the voters of each of the merging municipalities and approved by the General Assembly under 17 V.S.A. § 2645, that part of the plan of merger containing the permanent provisions required by section 1483 of this title shall become the charter of the consolidated municipality.
(Added 1965, No. 184, § 1(a), (b); amended 1966, No. 31 (Sp. Sess.), § 2, eff. March 12, 1966; 1995, No. 108 (Adj. Sess.), § 1.)
§ 1486 Notice to Secretary of State
The clerk or equivalent officer of the municipality into which other municipalities have merged shall so notify the Secretary of State within ten days following the last of the meetings referred to in section 1485 of this title.
(Added 1965, No. 184, § 4.)
§ 1487 Alternative merger provisions
Notwithstanding the existence of any special act authorizing the merger of two or more municipalities, the legislative bodies of those municipalities which plan to merge may elect to proceed either under this chapter or under the special act authorizing the merger.
(Added 1966, No. 31 (Sp. Sess.), § 3, eff. March 12, 1966.)
Chapter 51 Finances; Accounts and Audits
Subchapter 1 Taxes
§ 1521 Tax bills and warrants
The selectboard shall seasonably make out and deliver to the proper collector, or to the town treasurer, if the town has voted to collect its taxes by that officer, tax bills for State, county, town, town school district, and highway taxes, with the name of each person taxed and the amount of the tax. They shall annex proper warrants thereto for collection and may include all of such taxes or a part thereof in one tax bill; provided, however, that a tax bill that includes an assessment of tax on a homestead shall separately state the amount of tax imposed on the housesite for municipal services and the amount of tax imposed on the housesite for education property tax. One warrant only shall be required for the collection of taxes on such tax bill. The selectboard shall certify on a tax bill, so made out what taxes are included therein and the rate percent of each tax so included.
(Amended 1997, No. 60, § 28, eff. July 1, 1998; 2003, No. 76 (Adj. Sess.), § 19, eff. Feb. 17, 2004.)
§ 1522 Receipt for tax bills
Upon the delivery of such tax bills to the collector, the selectboard shall take from him or her a receipt therefor, and shall deliver the same to the town treasurer.
§ 1523 Tax bills; duties of selectboards as to a deficit
(a) When a town at the end of the fiscal year contemplated by section 1683 of this title has a deficit, unless the voters of said town have voted a special tax to make up said deficit or unless said deficit shall have been refunded pursuant to the provisions of chapter 53 of this title, the selectboard, when making up the next annual tax bill, shall add thereto a tax of five percent or such multiple of five in addition to the tax vote already authorized by law, to be levied upon the grand list of such town as will provide sufficient revenue to liquidate such deficit.
(b) When a school district at the end of the fiscal year contemplated by section 1683 of this title has a deficit, unless the voters have voted to borrow funds to repay the deficit over a term of three years or less, or unless the deficit has been refunded pursuant to chapter 53 of this title, the school board shall add an amount sufficient to pay the deficit to its next adopted budget and report the total to the Secretary of Education for purposes of calculating education spending.
(c) As used in this section, the following words have the following meanings unless the context clearly indicates the contrary: A “deficit” is the excess of the current liabilities and liability reserves of the fund over its current assets; or, where the fund has also other resources and obligations, the excess of its obligations over its resources; “current assets” are those assets which are available or can be made readily available to meet the cost of operations or to pay current liabilities; “current liabilities” are those liabilities which are payable within a relatively short period of time, usually no longer than a year; a “fund” is a sum of money or other resource set aside for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations, and constituting an independent fiscal and accounting entity such as the general or school fund.
(Amended 1959, No. 129, eff. April 21, 1959; 1997, No. 71 (Adj. Sess.), § 119, eff. March 11, 1998; amended 2003, No. 36, § 11; 2005, No. 182 (Adj. Sess.), § 9; 2013, No. 92 (Adj. Sess.), § 270, eff. Feb. 14, 2014.)
§ 1524 Tax levies; how kept
The town treasurer upon receiving from the selectboard a town tax bill under the provisions of 32 V.S.A. § 4791 or the receipt of the tax collector for such bill under the provisions of section 1522 of this title shall credit the town highway department and the town school district each with the gross sum of the levy provided for such department and district. The balance of such levy shall be credited to the general fund.
(Amended 2017, No. 74, § 79.)
§ 1525 Tax levies; credit for gains
The treasurer shall thereafter credit to the general fund all gains over the total sum of such rate bill by reason of fractional discounts under the provisions of 32 V.S.A. § 4774 or of interest charges upon delinquent tax payments under the provisions of 32 V.S.A. § 5136 or any other gain.
(Amended 2017, No. 74, § 80.)
§ 1526 Tax levies; debit of general fund
The treasurer shall debit thereafter such general fund with:
(1) all collection fees allowed such treasurer for receiving taxes and issuing his or her warrant to the collector;
(2) any other lawful costs of collection;
(3) abatements made by the board for the abatement of taxes; and
(4) any other diminution or loss in the course of the enforcement of such rate bill.
(Amended 2017, No. 74, § 81.)
§ 1527 Tax levies—Officers’ duties
(a) In all towns having therein neither an incorporated village nor an incorporated school district, the town treasurer shall deal with the usual tax levies as provided in sections 1524-1526 of this title.
(b) In any town having therein an incorporated village but no incorporated school district, the town treasurer shall deal with the usual tax levies except the highway levy as provided in such sections and the voters of the town may vote to adopt the provisions of the aforementioned sections for application to the town highway levy.
(c) In any town having therein an incorporated school district but no incorporated village, the town treasurer shall deal with the usual tax levies except the school district levy as provided in sections 1524-1526 of this title and the voters of the town may vote to adopt the provisions of the aforementioned sections for application to the town school district levy.
(d) In any town having therein both an incorporated school district and an incorporated village, the provisions of said sections 1524-1526 with regard to the relation of general fund, highway account, and town school district account shall apply only if adopted by action of the voters of the town.
§ 1528 Collector of taxes
When a town at its annual meeting elects a collector of taxes, he or she shall collect State, county, town, and town school district taxes. Warrants and rate bills for the collection of such taxes shall be directed to the collector, and he or she shall give his or her receipt therefor. He or she shall collect and pay over such taxes agreeably to his or her warrant.
§ 1529 First constable as collector
The first constable shall be collector of State, county, town, and town school district taxes when a collector of taxes is not elected at the annual town meeting, and shall pay over the taxes collected agreeably to the warrants for their collection.
§ 1530 Compensation
If a municipality votes to pay a salary or other compensation for collecting taxes in lieu of fees and commissions, the latter shall be turned in to the municipal treasurer at least once a month.
(Amended 1997, No. 156 (Adj. Sess.), § 28, eff. April 29, 1998; 2003, No. 100 (Adj. Sess.), § 3.)
§ 1531 Payment of money; inspection of tax book
When requested by notice in writing signed by a majority of the selectboard, the collector of taxes shall pay to the town treasurer the money belonging to the town and the town school district collected by him or her. He or she shall submit his or her tax book and list to the treasurer for inspection and computation. When he or she fails to do so for ten days, he or she shall be fined not more than $100.00.
§ 1532 Settlement; disqualification for neglect
Annually, on or before February 1, the collector shall pay over all monies collected by him or her to the treasuries to which they belong and settle his or her account with the treasurers. When he or she refuses or neglects so to do, he or she shall be ineligible to reelection for the ensuing year.
§ 1533 Town board for the abatement of taxes
(a) The board of civil authority, with the listers and the town treasurer, shall constitute a board for the abatement of town and property taxes and water and sewer charges.
(b) The act of a majority of a quorum at a meeting shall be treated as the act of the board. This quorum requirement need not be met if the town treasurer, a majority of the listers, and a majority of the selectboard are present at the meeting.
(Amended 1999, No. 49, § 82, eff. June 2, 1999; 2017, No. 74, § 82; 2017, No. 130 (Adj. Sess.), § 13.)
§ 1534 Meetings; how notified
Meetings of such board shall be notified like meetings of the board of civil authority, except that at least one of the listers shall have personal notice of such meetings.
§ 1535 Abatement
(a) The board may abate in whole or part taxes, water charges, sewer charges, interest, collection fees, or any other municipal charges or fees for utilities or services, or any combination of those, other than those arising out of a corrected classification of homestead or nonhomestead property, accruing to the town in the following cases:
(1) taxes or charges of persons who have died insolvent;
(2) taxes or charges of persons who have moved from the State;
(3) taxes or charges of persons who are unable to pay their taxes or charges, interest, and collection fees;
(4) taxes in which there is a clear or obvious error or a mistake of the listers;
(5) taxes or charges upon real or personal property lost or destroyed during the tax year;
(6) the exemption amount available under 32 V.S.A. § 3802(11) to persons otherwise eligible for exemption who file a claim on or after May 1 but before October 1 due to the claimant’s sickness or disability or other good cause as determined by the board of abatement; but that exemption amount shall be reduced by 20 percent of the total exemption for each month or portion of a month the claim is late filed;
(7) [Repealed.]
(8) [Repealed.]
(9) taxes or charges upon a mobile home moved from the town during the tax year as a result of a change in use of the mobile home park land or parts thereof or closure of the mobile home park in which the mobile home was sited, pursuant to 10 V.S.A. § 6237; or
(10) sewer, water, utility, or service charges caused by circumstances that were difficult to foresee or outside of the person’s control.
(b) The board’s abatement of an amount of tax or charge shall automatically abate any uncollected interest and fees relating to that amount.
(c) The board shall, in any case in which it abates taxes or charges, interest, or collection fees accruing to the town or denies an application for abatement, state in detail in writing the reasons for its decision. The written decision shall provide sufficient explanation to indicate to the parties what was considered and what was decided. The decision shall address the arguments raised by the applicant. Prior to issuing a written decision, the board may request additional relevant information or documentation related to the case.
(d)(1) The board may order that any abatement as to an amount or amounts already paid be in the form of a refund or in the form of a credit against the tax or charge for the next ensuing tax year or charge billing cycle and for succeeding tax years or billing cycles if required to use up the amount of the credit.
(2) Whenever a municipality votes to collect interest on overdue taxes pursuant to 32 V.S.A. § 5136, interest in a like amount shall be paid by the municipality to any person for whom an abatement has been ordered.
(3) Interest on taxes or charges paid and subsequently abated shall accrue from the date payment was due or made, whichever is later. However, abatements issued pursuant to subdivision (a)(5) of this section need not include the payment of interest.
(4) When a refund has been ordered, the board shall draw an order on the town treasurer for payment of the refund.
(e)(1) The board may hear a group of similar requests for abatement as a class, provided that:
(A) the board has first met and established a class in accordance with this subsection (e);
(B) the requests shall arise from the same cause or event;
(C) the requests relate to the bases for abatement in subdivision (a)(4), (5), or (9) of this section;
(D) the board shall group requests based on property classification;
(E) the board shall provide notice to each taxpayer of the taxpayer’s status as a member of the class; and
(F) a taxpayer shall have the right to decline the taxpayer’s status as a member of the class and pursue the taxpayer’s request as a separate action before the board.
(2) The board shall provide notice to each taxpayer at minimum 21 days before the scheduled hearing for the class. The notice shall include a description of the class and the board’s reasons for grouping the requests, an explanation of the taxpayer’s status as a member of the class, the procedure for appealing a board decision, the taxpayer’s right to decline class membership and pursue a separate action, and any deadlines that the taxpayer must meet in order to participate as a member of the class or pursue a separate action.
(3) A taxpayer shall notify the board of the taxpayer’s intent to pursue a separate action, pursuant to subdivision (1)(F) of this subsection, a minimum of seven days before the board’s hearing to consider a class request.
(4) A board may preserve and take notice of any evidence supporting the basis for abatement for a class and use that evidence for purposes of a later, separate action pursued by an individual taxpayer.
(5) In instances where a board abates in part taxes, charges, interest, or collection fees for a class, the board shall not render a decision that results in disproportionate rates of abatement for taxpayers within the class.
(f) A municipality shall provide clear notice to a taxpayer of the ability to request tax abatement, and how to request abatement, at the same time as a municipality attempts to collect a municipal fee or interest for delinquent taxes, water charges, sewer charges, or tax collection.
(g) The legislative body of a municipality by a majority vote may abate de minimis amounts of taxes for purposes of reconciling municipal accounts according to generally accepted accounting principles.
(Amended 1975, No. 158 (Adj. Sess.), § 1; 1989, No. 149 (Adj. Sess.), § 1, eff. April 24, 1990; 1991, No. 19; 1995, No. 149 (Adj. Sess.), § 1; 1999, No. 49, § 83, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 24, eff. May 29, 2000; 2001, No. 140 (Adj. Sess.), § 30, eff. June 21, 2002; 2003, No. 76 (Adj. Sess.), § 3, eff. Feb. 17, 2004; 2005, No. 14, §§ 6, 7, eff. May 3, 2005; 2011, No. 155 (Adj. Sess.), § 6; 2017, No. 130 (Adj. Sess.), § 13; 2023, No. 106 (Adj. Sess.), § 1, eff. May 13, 2024.)
§ 1536 Abatement; record; discharge
The board for the abatement of taxes shall make a record of taxes, interest, and fees so abated, which shall be recorded in the office of the town clerk and a certified copy shall be forwarded forthwith to the collector of taxes and the town treasurer. The collector shall mark in the tax bill the taxes, interest, and fees abated and the persons against whom they were assessed shall be discharged from their payment. An abatement of a use change tax shall be separately recorded in the land records of the municipality in which the property subject to the abatement is located and shall effect a release of the land use lien on the portion of the property abated.
(Amended 1989, No. 149 (Adj. Sess.), § 2, eff. April 24, 1990; 1999, No. 49, § 84, eff. June 2, 1999; 2017, No. 74, § 83.)
§ 1537 City or village board of tax abatement
The board for the abatement of taxes of a city shall consist of the mayor, city clerk, and aldermen thereof and the justices of the peace and assessors residing therein; of a village, of the trustees and clerk thereof and the justices of the peace and listers residing therein. Such board may abate taxes, interest, and fees accruing to such municipality in all cases where a different provision is not made by the charter, acts of incorporation, or amendments thereto, of such municipality.
(Amended 1989, No. 149 (Adj. Sess.), § 3, eff. April 24, 1990.)
§ 1538 Assessment of tax to pay execution
When a demand is made upon a city, town, town school district, or incorporated village for payment of an execution issued against it, and funds are not available in its treasury to pay the same, the mayor and board of aldermen, selectboard, or trustees shall forthwith assess a tax upon the grand list of the city, town, town school district, or incorporated village, sufficient to pay such execution with the charges and 12 percent interest thereon, and cause the same to be collected within 60 days.
Subchapter 2 Town Treasurer; Accounts; City Accounts
§ 1571 Accounts; reports
(a) The town treasurer shall keep an account of monies, bonds, notes, and evidences of debt paid or delivered to him or her, and of monies paid out by him or her for the town and the town school district, which accounts shall at all times be open to the inspection of persons interested.
(b) Monies received by the town treasurer on behalf of the town may be invested and reinvested by the treasurer with the approval of the legislative body.
(c) The town treasurer shall file quarterly reports with the legislative body regarding his or her actions set forth in subsections (a) and (b) of this section.
(d) The town treasurer shall annually, on or before June 30, complete and provide to the selectboard a copy of the document made available by the Auditor of Accounts pursuant to 32 V.S.A. § 163(11) regarding internal financial controls.
(Amended 1981, No. 239 (Adj. Sess.), § 5; 2011, No. 155 (Adj. Sess.), § 27.)
§ 1572 City accounts
The accounting officers of the several cities within the State shall keep uniform accounts in a manner prescribed by the Auditor of Accounts.
§ 1573 Assistant treasurer
A town or city treasurer may appoint an assistant town or city treasurer and may revoke any such appointment at any time. The town or city treasurer shall be responsible for the acts and omissions of any assistant appointed by him or her. If after written request from the selectboard to appoint an assistant treasurer, the town or city treasurer fails for ten days to do so, the selectboard may appoint an assistant treasurer and may revoke such appointment at any time. An assistant treasurer, during the temporary absence or disability of the treasurer, shall perform the duties of treasurer. The appointment and revocation of assistant treasurer shall be recorded in the office of the town or city clerk.
(Amended 1959, No. 183, § 1.)
§ 1574 Record of taxes voted
The treasurer shall keep a record showing the amount of taxes voted for the support of highways, schools, special departments, if any, and for general town purposes. Such record shall be based upon an inspection of the town and town district tax bills, when placed with the treasurer by the selectboard under the provisions of 32 V.S.A. § 4791. When such taxes are collected by a tax collector, such record may be based upon the collector’s tax receipt.
§ 1575 Repealed
[Repealed]
1985, No. 196 (Adj. Sess.), § 17.
§ 1576 Town treasurer; record of orders
The treasurer shall pay orders drawn on him or her by officials authorized by law to draw such orders. If he or she does not pay such orders, on demand, the holder thereof may recover the amount from the town, with interest from the time of such demand. The treasurer shall keep a record of such orders not paid on demand in a book kept for that purpose. In the event, however, where there are insufficient funds on hand for the payment of any such order, the treasurer shall forthwith notify the selectboard and the officer drawing the same.
§ 1577 [Omitted.]
§ 1578 Settlement with auditors and successor
The treasurer shall settle with the auditors five days previous to each annual town meeting, and at such other times as the selectboard may require and whenever he or she retires from office. At the close of his or her term of office he or she shall immediately pay over to his or her successor the funds in his or her hands belonging to the town and the town school district and at the same time deliver to his or her successor all official books and papers in his or her possession.
§ 1579 Collector’s receipt
The town and town school district treasurer shall endorse upon the receipt given by the collector of taxes and lodged with such treasurer all payments thereon made by such collector and such abatements thereof as may be made by the board for the abatement of taxes.
§ 1580 Account with collector
The town and town school district treasurer shall keep with the collector of taxes a separate account of each annual tax bill by endorsing thereon his or her payments and the abatement allowed by the board for abatement of taxes with the date of each endorsement.
§ 1581 Balance due treasurer
When a balance is due a treasurer, the auditors shall draw and deliver to him or her an order therefor on the town treasury.
§ 1582 Outstanding orders; notice to stop interest
When a municipality has outstanding interest bearing orders due and payable, the treasurer may give notice that such orders will be paid on presentation at his or her office on or before a day certain named in such notice, and that after such day such orders shall cease to draw interest.
§ 1583 Outstanding orders; publication of notice
Such notice shall be given personally or by publication in a newspaper published in the county, or if none is published in the county, in a newspaper published in an adjoining county, at least three weeks successively, the last publication to be at least 15 days before the day named in such notice.
(Amended 2017, No. 74, § 84.)
§ 1584 Outstanding orders; no interest after day of notice
When such notice has been given, by publication as set forth in section 1583 of this subchapter or by written notice signed by the treasurer and delivered to the holder of any such order, such order shall not draw interest after the day named in the notice, unless the treasurer fails to pay such order on presentation according to the terms of the notice.
(Amended 2017, No. 74, § 85.)
§ 1585 Unassigned fund balance
Monies from a budget approved by the voters at an annual or special meeting that are not expended by the end of a municipality’s fiscal year shall be under the control and direction of the legislative body of the municipality and may be carried forward from year to year as an unassigned fund balance. Unassigned fund balances may be invested and reinvested as are other monies received by a town treasurer and may be expended for any public purpose as established by the legislative body of the municipality.
(Added 2025, No. 57, § 6, eff. July 1, 2025.)
Subchapter 3 Orders Drawn by Municipal Bodies
§ 1621 Orders for land damages or damages for injuries
The selectboard may draw orders on the town treasurer for damages for lands or property taken or improved for a highway or other public use, or for damages settled by agreement or awarded for injuries sustained from the insufficiency of a highway.
§ 1622 Town orders; record
(a)(1) The chair of the selectboard shall keep or cause to be kept a single record of all orders drawn by the board showing the number, date, to whom payable, for what purpose, and the amount of each order.
(2) All other officers authorized by law to draw orders upon the town treasurer shall keep or cause to be kept a like record.
(b) Such records shall be submitted to the town auditors annually on or before February 1.
(c) If the records of orders named in this section are made by an assistant clerk, the assistant clerk shall not be the town treasurer or the spouse of the town treasurer or any person acting in the capacity of clerk for the town treasurer.
(Amended 2017, No. 130 (Adj. Sess.), § 13.)
§ 1623 Signing orders
(a) The selectboard may do either of the following:
(1) Authorize one or more members of the board to examine and allow claims against the town for town expenses and draw orders for such claims to the party entitled to payment.
(A) Orders shall state definitely the purpose for which each is drawn and shall serve as full authority to the treasurer to make the payments.
(B) The selectboard shall be provided with a record of orders drawn under this subdivision (1) whenever orders are signed by less than a majority of the board.
(2) Submit to the town treasurer a certified copy of those portions of the selectboard minutes, properly signed by the clerk and chair or by a majority of the board, showing to whom and for what purpose each payment is to be made by the treasurer. The certified copy of the minutes shall serve as full authority to the treasurer to make the approved payments.
(b) This section shall apply to all municipal public bodies authorized by law to draw orders on the municipal treasurer.
(Added 1995, No. 110 (Adj. Sess.), § 1; amended 2017, No. 130 (Adj. Sess.), § 13.)
Subchapter 4 Accounts of Overseer of Poor
§ 1651 Repealed
[Repealed]
1967, No. 147, § 53(b), eff. Oct. 1, 1968.
§ 1652 Records of overseers of the poor
Effective October 1, 1968, the office of overseer of the poor is abolished. On that day or as soon thereafter as possible the overseer of the poor shall turn all records of the office over to the town clerk of his or her town, who shall thereafter keep them until authorized by law to dispose of them.
(Added 1967, No. 147, § 37, eff. Oct. 1, 1968.)
Subchapter 5 Auditors and Audits
§ 1681 Auditors; duties; meeting
(a)(1) Town auditors shall meet at least 25 days before each annual town meeting to examine and adjust the accounts of all town officers and all other persons authorized by law to draw orders on the town treasurer.
(2) Such auditing shall include the account that the treasurer is required to keep with the collector, the tax accounts of the collector, trust accounts where the town or any town officer, as such officer, is trustee or where the town is sole beneficiary, accounts relating to the town indebtedness, and accounts of any special funds in the care of any town official.
(b) Notice of such meeting shall be given by posting or publication ten days in advance of such meeting.
(Amended 1991, No. 176 (Adj. Sess.), § 1; 1997, No. 83 (Adj. Sess.), § 4; 2011, No. 129 (Adj. Sess.), § 29, eff. July 1, 2013.)
§ 1682 Report; distribution
(a)(1) The auditors shall report their findings in writing and cause the same to be mailed or otherwise distributed to the voters of the town at least ten days before the annual meeting.
(2) At a duly warned annual or special meeting, the voters of the town may vote to provide notice of the availability of the auditors’ report to the voters of the town in lieu of mailing or otherwise distributing the report itself. If the voters of the town vote to provide notice of availability, they must specify how notice of availability shall be given, and such notice of availability shall be provided to the voters of the town at least 30 days before the annual meeting.
(3) Upon request, the auditors shall mail or distribute a copy of the full report to a voter or resident of the town.
(4) When the auditors mail or distribute the report or provide notice of the availability of the report to the voters of the town, they shall at the same time deliver to the town clerk the copies required by section 1173 of this title and shall place all surplus copies in the custody of the town clerk before the first Tuesday in March.
(5) As used in this subsection, the term “resident” shall be defined as the term is defined in 17 V.S.A. § 2122(b).
(b) If a town has voted to eliminate the office of auditor, the findings of the public accountant employed in accordance with 17 V.S.A. § 2651b shall be mailed or otherwise distributed by the selectboard in the same manner that findings are required to be distributed by auditors.
(Amended 1979, No. 200 (Adj. Sess.), § 119; 1997, No. 83 (Adj. Sess.), § 5; 2003, No. 126 (Adj. Sess.), § 2, eff. July 1, 2005; 2015, No. 30, § 38, eff. May 26, 2015.)
§ 1683 Contents of report; municipal fiscal years
(a) The report shall show a detailed statement of the financial condition of such town for its fiscal year, a classified summary of receipts and expenditures, a list of all outstanding orders and payables more than 30 days past due, and show deficit, if any, pursuant to section 1523 of this title and such other information as the municipality shall direct. Individuals who are exempt from penalty, fees, and interest by virtue of 32 V.S.A. § 4609 shall not be listed or identified in any such report, provided that they notify or cause to be notified in writing the municipal or district treasurer that they should not be so listed or identified.
(b) The fiscal year of all school districts, charter provisions notwithstanding, shall end on June 30.
(c) The fiscal year of other municipalities shall end on December 31, unless the municipality votes at an annual or special meeting duly warned for that purpose to have a different fiscal year, in which case the fiscal year so voted shall remain in effect until amended.
(d) [Repealed.]
(Amended 1961, No. 219, § 2, eff. July 13, 1961; 1965, No. 23, § 2; 1969, No. 301 (Adj. Sess.), § 1, subsec. (a), eff. July 1, 1971, subsec. (c), eff. April 9, 1970; 1971, No. 8, § 1, eff. Feb. 25, 1971; 1989, No. 202 (Adj. Sess.), § 2; 1991, No. 110, § 4, eff. June 28, 1991; 1997, No. 83 (Adj. Sess.), § 6; 2011, No. 129 (Adj. Sess.), § 30, eff. July 1, 2013; 2015, No. 30, § 39, eff. May 26, 2015.)
§ 1684 Trust assets; indebtedness
The auditors shall make a detailed statement showing:
(1) the condition of all trust funds in which the town is interested and a list of the assets of such funds, including the account of receipts and disbursements for the preceding year;
(2) what bonds of the town are outstanding and the rate of interest and the amount thereof; and
(3) what interest-bearing notes or orders of the town are outstanding and the serial number, date, amount, payee, and rate of interest of each and the total amount thereof.
(Amended 2017, No. 130 (Adj. Sess.), § 13.)
§ 1685 Subchapter application to villages
Sections 1681-1684 of this subchapter shall apply to all incorporated villages.
(Amended 2017, No. 74, § 86.)
§ 1686 Penalty
(a) At any time in their discretion, town auditors may, and if requested by the selectboard, shall, examine and adjust the accounts of any town officer authorized by law to receive or disburse money belonging to the town.
(b) If the town has voted to eliminate the office of auditor, the public accountant employed by the selectboard shall perform the duties of the town auditors under subsection (a) of this section upon request of the selectboard.
(c)(1) If, after at least five business days following his or her receipt by certified mail of a written request by the auditors or public accountant that is approved and signed by the legislative body, a town officer willfully refuses or neglects to submit his or her books, accounts, vouchers, or tax bills to the auditors or the public accountant, or to furnish all necessary information in relation thereto, that town officer shall be ineligible to reelection for the year ensuing and be subject to the penalties otherwise prescribed by law.
(2) A town officer who violates subdivision (1) of this subsection (c) shall be personally liable to the town for a civil penalty in the amount of $100.00 per day until he or she submits or furnishes the requested materials or information. A town may bring an action in the Civil Division of the Superior Court to enforce this subdivision.
(d) As used in this section, the term “town officer” shall not include an officer subject to the provisions of 16 V.S.A. § 323.
(Amended 1997, No. 83 (Adj. Sess.), § 7; 2011, No. 129 (Adj. Sess.), § 31, eff. July 1, 2013; 2011, No. 155 (Adj. Sess.), § 28; 2017, No. 27, § 4, eff. May 10, 2017.)
§ 1687 Notice of orders
A bank, trust company, or individual in this State holding orders or other evidences of indebtedness of a municipal corporation shall annually, on or before January 5, send written notice to the chair of the board of auditors of such corporation, stating the amount of such orders or other evidences of indebtedness and the balance due thereon as of December 31 next preceding, unless the holder of any such indebtedness is requested by such auditor to send such notice at some other date to conform to the fiscal year of such municipality.
§ 1688 Notice of deposits
A bank or trust company in this State having on deposit funds of a municipal corporation shall annually, on or before January 5, send written notice to the chair of the board of auditors of such corporation, stating the balance on deposit to the credit of such corporation on December 31 next preceding, unless the holder of such funds is requested by such auditor to send such notice at some other date to conform to the fiscal year of such municipality.
§ 1689 Penalty for failure to send notice
A bank, trust company, or individual who violates a provision of section 1687 or 1688 of this subchapter shall be fined not less than $10.00 nor more than $25.00.
(Amended 2017, No. 74, § 87.)
§ 1690 Certified or public accountant to audit town accounts; warning; form
(a) The legislative body of a city, town, or incorporated village may upon its own motion contract with a public accountant, licensed in this State, to perform an annual financial audit of all funds of the town; or upon petition in writing of legal voters equal to five percent of the legal voters of the town or village, the legislative body shall insert in the warning for any annual meeting, or in the warning for a special meeting, which shall be called upon such petition, an article in substantially the following form:
“To see if the [city, town, or village] will vote to instruct the [legislative body] to employ a certified public accountant or public accountant licensed in this State, to perform an annual financial audit of all funds of the [city, town, or village].”
(b) Audits performed by a public accountant under this section shall be conducted in accordance with generally accepted government auditing standards, including the issuance of a report on internal control over financial reporting that shall be provided to recipients of the financial statements. When there are material weaknesses or significant deficiencies found in the internal control over financial reporting or the auditor’s or public accountant’s opinion is qualified, adverse, or disclaimed:
(1) the auditor or public accountant shall present the findings or opinion to the legislative body of the town and explain those material weaknesses or significant deficiencies or his or her opinion at a meeting duly warned for the purpose;
(2) after the audit report is delivered to the legislative body of a municipality, the notice for the next meeting of the legislative body shall also notify the voters of the availability of the audit report and the accompanying report on internal control over financial reporting;
(3) the next published annual report of the town shall include a summary of material weaknesses or significant deficiencies found in the internal controls over financial reporting or a statement that the audit report sets forth an opinion that is qualified, adverse, or disclaimed; and
(4) the legislative body shall post the audit report and the accompanying report on internal control over financial reporting on the municipality’s website, if the municipality has a website.
(Amended 1985, No. 196 (Adj. Sess.), § 14; 2009, No. 95 (Adj. Sess.), § 1.)
§ 1691 Terms of employment
At an annual or special meeting warned as provided in section 1690 of this title, a town or incorporated village may authorize the employment of a certified public accountant or a public accountant and fix the terms of such employment. Nothing herein shall be construed to relieve a town or incorporated village of the duty to elect town or village auditors as provided by law.
§§ 1692-1695 Repealed
[Repealed]
1967, No. 91, § 4.
§ 1696 Repealed
[Repealed]
1969, No. 219 (Adj. Sess.), § 4, eff. March 27, 1970.
§ 1697 Repealed
[Repealed]
1967, No. 91, § 4.
Chapter 53 Indebtedness
Subchapter 1 Indebtedness Generally
§ 1751 Definitions
As used in this chapter:
(1) “Municipal corporation” shall include a city, town, village, town school district, graded school district, or other incorporated, union, or unified school district or any entity providing educational services which is eligible to receive State aid under 16 V.S.A. chapter 123, a fire district, a union municipal district created under an intermunicipal agreement entered into and approved as provided in subchapter 3 of chapter 121 of this title, a regional mass transportation authority created under chapter 127 of this title, a local housing authority created under section 4003 of this title, a consolidated water or sewer district created under chapter 91 or chapter 105 of this title, or the unified towns and gores of Essex County.
(2) “Legislative branch” shall mean the mayor and board of aldermen of a city, the selectboard of a town, the trustees of a village, the board of school directors of a school district, the trustees or prudential committee of a graded school or fire district, and the Board of Governors of the unified towns and gores of Essex County, and, with respect to other municipal corporations, the governing body designated by statute.
(3) “Improvement” shall include, apart from its ordinary signification:
(A) The acquiring of land for municipal purposes, the construction of, extension of, additions to, or remodeling of buildings or other improvements thereto, also furnishings, equipment, or apparatus to be used for or in connection with any existing or new improvement, work, department, or other corporate purpose, and also shall include the purchase or acquisition of other capital assets, including licenses and permits, in connection with any existing or new improvement benefiting the municipal corporation, and all costs incurred by the municipality in connection with the construction or acquisition of the improvement and the financing thereof, including capitalized interest, underwriters discount, the funding of reserves, and the payment of contributions to establish eligibility and participation with respect to loans made from any State revolving fund, to the extent such payment is consistent with federal law.
(B) Pursuant to subchapter 2 of chapter 87 of this title, projects relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or to eligible energy efficiency projects undertaken by owners of real property within the boundaries of the town, city, or incorporated village. Energy efficiency projects shall be those that are eligible under section 3267 of this title.
(Amended 1989, No. 111, § 1, eff. June 22, 1989; 1997, No. 62, § 61, eff. June 26, 1997; 2007, No. 4, § 2; 2009, No. 45, § 15f, eff. May 27, 2009; 2013, No. 161 (Adj. Sess.), § 72.)
§ 1752 Bonds; issuance
Debt may be incurred and bonds issued under this subchapter for any improvement, but no bonds shall be issued for the purpose of providing funds for ordinary expenses of any municipal corporation, except as otherwise provided.
§ 1752a Privately owned municipality-supported libraries
By a majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may issue municipal bonds under this chapter for the cost of capital improvements to any privately owned municipality-supported library situated within the municipality for use of residents of the municipality; and such improvements shall be considered “improvements” for the purposes of this chapter.
(Added 1987, No. 56, eff. May 15, 1987.)
§ 1753 Use of bond proceeds
(a) If after bonds have been issued and no expenditure of the proceeds has been made for the purpose or purposes for which the debt was incurred, or if a balance remains after the completion of the project or projects for which the debt was authorized, a municipal corporation by a majority of the voters present and voting on the question at a meeting or meetings of such municipal corporation held for that purpose, may authorize the expenditure of the proceeds or portion thereof for any purpose or purposes for which bonds may be issued; provided, however, that if the proceeds obtained from the issuance of bonds or any balance thereof, is not appropriated as aforesaid, then the same shall be used to pay the principal of the loan as it matures.
(b) The warning calling the meeting provided in this section shall state the amount of the proceeds and the purpose for which they are to be used, and shall fix the place where and the date on which the meeting shall be held and the hours of opening and closing of the polls. Notice of the meeting shall conform to section 1756 of this title, and the conduct of the meeting and the qualifications of voters shall conform to section 1758 of this title.
(Added 1969, No. 104, eff. April 19, 1969.)
§ 1754 Validation
All outstanding bonds and notes of a municipal corporation issued prior to June 1, 1935, are hereby declared legal and binding obligations in accordance with the terms thereof.
§ 1755 Submission to voters
(a)(1) On a petition signed by at least ten percent of the voters of a municipal corporation the proposition of incurring a bonded debt to pay for public improvements shall be submitted to the qualified voters thereof at any annual or special meeting to be held for that purpose, or, when the legislative branch of a municipal corporation at a regular or special meeting called for such purpose shall determine by resolution passed by a vote of a majority of those members present and voting, that the public interest or necessity demands improvements, and that the cost of the same will be too great to be paid out of the ordinary annual income and revenue, by vote of a majority of those members present and voting, it may order the submission of the proposition of incurring a bonded debt to pay for public improvements to the qualified voters of such municipal corporation at a meeting to be held for that purpose.
(2) The warning calling the meeting shall state the object and purpose for which the indebtedness is proposed to be incurred, the estimated cost of the improvements, and the amount of bonds proposed to be issued, and shall fix the place where and the date on which the meeting shall be held and the hours of opening and closing the polls.
(b) A municipal corporation may not submit to the voters more than twice in any one-year period the proposition of incurring a bonded debt to pay for the same or a similar public improvement, except that a proposition voted on for the first time at an annual meeting that is reconsidered may be voted on in the subsequent annual meeting.
(Amended 1969, No. 58, § 2, eff. April 14, 1969; 1971, No. 89, § 1; 1973, No. 235 (Adj. Sess.), § 3; 2017, No. 50, § 53.)
§ 1756 Notice of meeting; authorization
(a)(1) The clerk of the municipal corporation shall cause notice of such meeting to be published in a newspaper of known circulation in such municipality once a week for three consecutive weeks on the same day of the week, the last publication to be not less than five nor more than ten days before such meeting.
(2) Notice of such meeting shall also be posted in five public places within such municipality for two weeks immediately preceding such meeting.
(b) When a majority of all the voters present and voting on the question at such meeting vote to authorize the issuance of bonds for said public improvements, the legislative branch shall be authorized to make such public improvements and issue bonds as hereinafter provided. Blank and defective ballots shall not be counted in determining the question.
(Amended 1969, No. 193 (Adj. Sess.), § 1.)
§ 1757 Validation
(a) Whenever the qualified voters of a municipal corporation, as defined in this subchapter, have voted by the requisite majority to authorize issuance of bonds to pay for any public improvement, and such proceedings are defective because of failure to comply with any of the statutory requirements therefor, although the required length of notice and notice of the purpose of such meeting has been had, such omissions may be cured by a resolution of such legislative branch by a vote of two-thirds of all its members at a regular or a special meeting called for that purpose, stating that the defect was the result of oversight, inadvertence, or mistake of law or fact.
(b) When such omission has been so supplied by such resolution, all bonds or other financing within the terms of the action of the qualified voters shall be as valid as if the statutory requirement had been complied with.
§ 1757a Validation of consolidated water or sewer districts and bonds voted for construction
(a) 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 consolidated water or sewer district created pursuant to chapter 91 or 105, respectively, of this title, after six months from the date of the recording in the office of the Secretary of State of the certificate required by section 3342 or 3673 of this title, as the case may be; 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 any such district or by any other municipal corporate entity, after six months from the date upon which voters in any such district or other municipal corporate entity met pursuant to warning and voted affirmatively to issue bonds to defray costs of sewer or water improvements or upon vote of a question of recission thereof whichever occurs later.
(b) This section shall be liberally construed to effect the legislative purpose to validate and make certain the legal existence of all consolidated water or sewer districts in this State and the validity of bonds issued or authorized by consolidated or other municipal corporate entities for water or sewer purposes, and to bar every right to question in any manner the existence of any such district or other municipal corporate entity or the validity of a bond voted by it for water or sewer purposes, and to bar every remedy therefor notwithstanding any defects or irregularities, jurisdictional or otherwise, after expiration of the six-month period.
(Added 1975, No. 57, § 1, eff. April 18, 1975.)
§ 1758 Conduct of meetings
(a) Meetings of voters in municipal corporations under this subchapter shall be conducted in the same manner as the annual city and town meetings are conducted. The qualifications of voters at such meetings shall be the same as the qualifications of voters at annual city and town meetings. The vote on the question of issuing bonds for such improvements shall be by Australian ballot. The form of the ballot to be used shall be substantially as follows:
I. Shall the bonds of the .......... of .......... in an amount not to exceed .......... be issued for the purpose of .................... ?
If in favor of the bond issue, make a cross (x) in this square □.
If opposed to the bond issue, make a cross (x) in this square □.
In the discretion of the legislative branch, the form of the ballot may also state the maximum rate of interest to be paid on the bonds, in which case the form of the ballot to be used shall be substantially as follows:
I. Shall bonds of the .......... of .......... in an amount not to exceed .......... bearing interest not to exceed .......... percent, be issued for the purpose of .................... ?
If in favor of the bond issue, make a cross (x) in this square □.
If opposed to the bond issue, make a cross (x) in this square □.
(b) If a school board submits to its voters the proposition of incurring a bonded debt to pay for an improvement, the form of the ballot shall be as set forth in subsection (a) of this section, however:
(1) If the entire costs of the improvement are not eligible for State construction aid pursuant to 16 V.S.A. chapter 123 because the costs exceed the maximum allowed by formula established by the State Board of Education, the ballot text set forth in subsection (a) shall be preceded by the following introductory sentences:
The .......... school board proposes to incur bonded indebtedness for the purpose of .......... at the estimated total project cost of $ .......... . It is estimated that ........ percent of the project will not be eligible for State school construction aid because its (unit costs and/or allowable space) cause it to exceed the maximum cost for state participation under the State Board of Education’s formula for school construction. Therefore, the ...... percent of the project that is estimated to be ineligible under the formula shall be built at 100% school district cost without State participation. The cost of the portion of construction which is ineligible under the formula is $ .......... .
(2) The ballot may contain language conditioning commencement of the improvement by the school board on receipt of final approval by the State Board of Education for State construction aid under 16 V.S.A. § 3448(a)(5).
(3) The warning and ballot shall contain the following set forth in bold-faced type:
State funds may not be available at the time this project is otherwise eligible to receive State school construction aid. The district is responsible for all costs incurred in connection with any borrowing done in anticipation of State school construction aid.
(c) A public informational hearing adhering to the requirements of 17 V.S.A. § 2680(g) shall be held to discuss the proposition of a school district incurring a bonded debt to pay for an improvement. At such hearing, the school board shall distribute to the participants a written estimate of the percentage of the costs of the improvement that will not be eligible for State school construction aid because its unit costs or allowable space, or both, cause it to exceed the maximum cost for State participation under the State Board of Education’s formula for school construction.
(Amended 1969, No. 58, § 3, eff. April 14, 1969; 1981, No. 239 (Adj. Sess.), § 29; 1995, No. 62, §§ 59, 61, eff. April 26, 1995; 1995, No. 185 (Adj. Sess.), §§ 7a, 79, eff. May 22, 1996; 1999, No. 29, § 54, eff. May 19, 1999; 2005, No. 147 (Adj. Sess.), § 44; 2017, No. 74, § 88.)
§ 1759 Denominations; payments; interest
(a)(1) Any bond issued under this subchapter shall draw interest at a rate not to exceed the rate approved by the voters of the municipal corporation in accordance with section 1758 of this title, or if no rate is specified in the vote under that section, at a rate approved by the legislative body of the municipal corporation, the interest to be payable as determined by the legislative body of the municipal corporation. The bonds or bond shall be payable serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds and subsequent principal payments or debt service payments, which include both principal and interest payments, to be continued annually in substantially level or declining amounts, as determined by the legislative body of the municipality, so that the entire debt will be paid in not more than 20 years from the date of issue.
(2) In the case of bonds issued for the purchase or development of a municipal forest, the first payment may be deferred not more than 30 years from the date of issuance of the bond. After any deferral period, the bonds or bond shall be payable annually in substantially level or declining annual debt service as the legislative body of the municipal corporation may determine, so that the entire debt will be paid in not more than 60 years from the date of issue.
(3) In the case of bonds issued for any capital project that has a useful life of at least 30 years, the entire debt will be paid in not more than 30 years from the date of issue.
(b) General obligation bonds authorized under this subchapter for the purpose of financing the improvement, construction, acquisition, repair, renovation, and replacement of a municipal plant as defined in 30 V.S.A. § 2901 shall be paid serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds, and subsequent principal payments or debt service payments, which include both principal and interest payments, to be continued annually in substantially level or declining amounts, as determined by the legislative body of the municipal corporation, so that the entire debt will be paid not more than 40 years from the date of issue, notwithstanding other permissible payment schedules authorized by this section.
(Amended 1963, No. 136; 1969, No. 58, § 1, eff. April 14, 1969; 1969, No. 177 (Adj. Sess.), § 1, eff. March 5, 1970; 1979, No. 138 (Adj. Sess.); 1985, No. 123 (Adj. Sess.), eff. April 18, 1986; 2007, No. 75, § 41; 2013, No. 50, § E.131.2; 2025, No. 57, § 8, eff. July 1, 2025.)
§ 1760 Bonds validated—Over five percent
Notwithstanding the interest rate limitation set forth in section 1759 of this title prior to April 14, 1969, if any municipal corporation has prior to that date authorized bonds to bear interest at a rate of interest in excess of five percent, but not more than six percent, the authorization so voted is hereby ratified and confirmed and declared to be legal and valid, and such municipal corporation may issue such bonds at a rate of interest not exceeding the rate stated in the vote authorizing the issuance of the bonds.
(Added 1969, No. 58, § 4, eff. April 14, 1969.)
§ 1761 Higher rates
If any municipal corporation has authorized bonds to bear interest at a rate of interest not in excess of six percent prior to March 5, 1970, and any of such bonds remain unsold on that date, the legislative branch of the municipal corporation may approve an increase in the rate of interest of such authorized but unsold bonds and the increase in such rate of interest is hereby declared to be legal and valid, and such municipal corporation may issue such bonds which shall bear interest at the rate of interest approved by the legislative branch which increased rate of interest is declared to be legal and valid.
(Added 1969, No. 177 (Adj. Sess.), § 2, eff. March 5, 1970.)
§ 1762 Limits
(a) A municipal corporation shall not incur an indebtedness for public improvements which, with its previously contracted indebtedness, shall, in the aggregate, exceed ten times the amount of the last grand list of such municipal corporation. Bonds or obligations given or created in excess of the limit authorized by this subchapter and contrary to its provisions shall be void.
(b) However, the provisions of this subchapter as to the debt limit shall not apply to bonds issued under section 1752 or 1754 of this title, relating to the ordinary expenses of a municipality.
(Amended 2011, No. 155 (Adj. Sess.), § 10.)
§ 1763 Specifications
The legislative branch shall determine the rate of interest or the manner of determining the same, the date, the denominations, the time and place of payment, and the form of bonds and notes to be used by the municipal corporation. The legislative branch may provide that the bonds be sold on bids fixing the rate of interest or the manner of determining the same from time to time for the period during which said bonds or notes shall remain outstanding, and if so sold, the accepted bid shall fix the rate of interest the bonds are to bear or the manner by which such rate of interest shall be determined periodically. When bonds are to be registered they shall be registered as provided by this chapter.
(Amended 1985, No. 125 (Adj. Sess.), § 3, eff. April 18, 1986.)
§ 1764 Taxes to meet interest and payments
At the time of assessing the general tax levy, in addition to all other taxes, the legislative branch shall provide annually for the assessment and collection each year, until such bonds are paid, of a tax sufficient to pay the interest on such bonds and such part of the principal as shall become due prior to the time the taxes are due in the next following year.
§ 1765 Advertisement
(a)(1) Except as provided in section 4650 of this title, bonds issued under this subchapter shall be sold at par, premium, or discount, and accrued interest, after being advertised at least once not less than five nor more than 30 days before the date of sale in a newspaper published in the county or within 50 miles of the municipal corporation issuing the bonds and, in case of issues exceeding $1,000,000.00, also in some financial paper published in Boston, Massachusetts, or New York, New York.
(2) The advertisement shall state the amounts, date, and denominations of the bonds, dates of maturity, rate of interest, or that the bidding shall be based thereon, and the time and place where the bonds are to be sold.
(b)(1) The legislative branch may reject any and all bids.
(2) In case all bids are so rejected, they may advertise and call for new bids in the manner hereinbefore provided, or in case, after the bonds have been advertised for sale as provided in this subchapter, no bids have been received, or all bids have been rejected and the whole or any part of the bonds remain unsold, those unsold may, within 60 days from the date of the public sale, be sold by the legislative branch at private sale at not less than par and accrued interest.
(c) If no bids are received at the public sale, the legislative branch may at any time advertise and call for new bids or may sell the unsold bonds at private sale in the manner hereinbefore provided and may award the bonds bearing a rate of interest not in excess of the maximum rate provided in section 1759 of this title, notwithstanding any limit imposed by the voters at the meeting at which the bonds were authorized.
(Amended 1969, No. 58, § 5, eff. April 14, 1969; 1989, No. 111, § 2, eff. June 22, 1989.)
§ 1766 Bonds; by whom signed
Such bonds shall be signed by the mayor and treasurer of an incorporated city, by the treasurer and selectboard or trustees, as the case may be, of a town or village, by the treasurer and trustees or prudential committee, as the case may be, of an incorporated school district, lighting or fire district, and by the treasurer and board of school directors of a town school district. The coupons to such bonds shall be signed by or bear the facsimile signature of the treasurer. When such municipal corporation has a corporate seal, such seal shall be affixed to such bonds, otherwise such bonds need not be sealed.
§ 1767 Computation of amount
(a)(1) In determining the amount of municipal indebtedness permitted by this subchapter, obligations created for current expenses, for a water supply or for electric lights, and temporary loans created in anticipation of the collection of taxes and necessary for meeting current expenses shall not be taken into account.
(2) Sinking funds and other monies set aside for the sole purpose of paying outstanding bonds shall be deducted.
(b) The provisions of this section and of section 1762 of this title shall not apply when the charter of a municipal corporation or special act otherwise limits its indebtedness.
§ 1768 Form of bond and coupon
The form of bond issued under this subchapter shall be substantially as follows:
FORM OF BOND
The (insert name of municipal corporation) in the county of _____ _____ and of Vermont promises to pay to the bearer hereof on the ________ day of ________ the sum of ______ dollars, with interest thereon at the rate of ________ percent per annum, payable semi-annually on the presentation and surrender of the interest coupons hereto attached. Both principal and interest of this bond are payable at the ________ bank in the (city, town, or village) of ________ State of ________ . This bond is issued by the (insert name of municipal corporation) under and by virtue of chapter 53 of Title 24 of Vermont Statutes Annotated, and acts in amendment of and in addition thereto and the ordinance (or resolution) of (insert name of municipal corporation) duly passed on the ________ day of ______ 20__ . This bond is one of the series of bonds of like tenor, except as to ________ numbered from ________ to ________ and issued for the purpose of defraying the cost of ________ as described in the ordinance or resolution in (insert name of municipal corporation).
It is hereby certified and recited that all acts, conditions, and things required to be done precedent to and in the issuing of these bonds have been done, have happened, and have been performed in regular and due form, as required by such law and ordinance (or resolution), and for the assessment, collection, and payment hereon of a tax to pay the same, when due, the full faith and credit of (insert name of municipal corporation) are hereby irrevocably pledged.
In testimony whereof the (name of municipal corporation) has caused this bond to be signed by its ________ and ________ and the seal of (insert name of municipal corporation) affixed hereto this ______ day of _____ .
Treasurer.
COUPON
No. ____
On the ____ day of ____ the (insert name of municipal corporation) in the State of Vermont promises to pay to bearer as provided in such bond, the sum of ____ dollars at the ____ (bank) ____ , being ____ months’ interest due that day on bond No. ____ dated ____ .
Treasurer.
§§ 1769, 1770 Repealed
[Repealed]
2011, No. 155 (Adj. Sess.), § 11.
§ 1771 Refunding bonds; authorization
A municipal corporation that has outstanding and unpaid orders, notes, bonds, or coupons, lawfully issued, may issue other negotiable notes or bonds to pay or retire the same. Such bonds shall be signed, sold, made payable, and mature in the same manner as an original issue of bonds of a municipal corporation is signed, sold, made payable, and mature, as provided in this subchapter.
§ 1772 Refunding bonds; procedure and limitations
(a) Such municipal corporation by its legislative branch, by resolution or ordinance, shall determine the necessity for issuing refunding bonds, the amount of legal outstanding indebtedness to be refunded, what amount of new bonds shall be issued, at what time and place they shall be payable, the rate of interest thereon, or that the rate of interest shown by the accepted bid shall determine the rate of interest thereon, and when payable, the form of bond, which shall be substantially in the form provided in this subchapter, and whether the bonds shall be registered or have interest coupons attached. Such new bonds shall not be used or sold except to provide means for paying or retiring such outstanding indebtedness in accordance with the provisions of subsection (b) of this section.
(b) A municipal corporation by its legislative branch, by resolution or ordinance, may issue refunding bonds for the purpose of paying any of its bonds or notes at maturity or upon acceleration or redemption. The refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the municipality deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of the refunding bonds, as may be required by the resolutions under which bonds are issued.
(Amended 1983, No. 24, § 2, eff. April 6, 1983; 2017, No. 74, § 89.)
§ 1773 Temporary loans
(a) If a municipal corporation votes to issue bonds in accordance with law, the officers authorized to issue the same, upon resolution of the legislative branch of the municipal corporation, may make a temporary loan, in the name of such municipal corporation, for a period of not more than one year in anticipation of the money to be derived from the sale of such bonds and may issue notes therefore. Temporary notes issued under this subsection for a shorter period than one year may be renewed or refunded by the issue of other notes maturing not more than one year from the date of the original loan except as stated in subsection (b) of this section. The maximum maturity date of the authorized bond issue need not be reduced because of a temporary loan hereunder except as stated in subsection (b) of this section.
(b) A temporary note issued under subsection (a) of this section may be renewed or refunded to mature more than one year from the date of the original temporary loan. In such a case, the authorized amount of the bond issue shall be reduced each year or portion thereof after the first year during which the temporary loan remains outstanding by a factor at least equal to the amount which will reduce the authorized amount of bonds to zero through equal annual payments over the maximum maturity allowed by law for such bonds, or such lesser maturity as may be determined by the legislative branch of the municipality. The amount of the temporary loan outstanding at any time shall not exceed the current authorized amount of the bond issue. The legislative branch of the municipal corporation shall, in each year in excess of any one year period, include in the next annual apportionment or assessment of taxes an amount equal to the amount of the reduction to be used either for the purpose of the original authorized bond issue or to satisfy the temporary note. With the approval of the voters, the period after which the authorized amount of the bond issue shall begin to be reduced may be extended to no more than three years. Temporary notes issued under this subsection shall mature no later than one year from their original date and any renewal or refunding thereof shall mature no later than ten years from the date of the original loan. The maximum maturity date of the authorized bond issue shall be reduced by a period equal to the period of temporary borrowing in excess of one year from the date of the original temporary note and for so long as the notes remain unsatisfied or outstanding.
(c) Pending the receipt of revenue in the form of grants-in-aid from any source, a municipal corporation through its legislative branch, by resolution or ordinance, may issue revenue anticipation notes in anticipation of the grants-in-aid to be received. The notes may be issued on such terms and conditions and at such times as the legislative branch shall determine. The proceeds of the notes may be used only for the purpose for which the grants-in-aid are anticipated, and no note may mature more than one year from its date; provided, however, that a note issued under this subsection may be refunded or renewed from time to time by the issuance of a note or notes dated before the date upon which the total grant-in-aid is received.
(Amended 1967, No. 242 (Adj. Sess.), § 1, eff. Feb. 13, 1968; 1969, No. 285 (Adj. Sess.), § 12, eff. April 9, 1970; 1975, No. 165 (Adj. Sess.); 1979, No. 94 (Adj. Sess.), § 1, eff. March 7, 1980; 1991, No. 51.)
§ 1774 Record by treasurer
The treasurer of each governmental unit as defined in section 4551(5) of this title shall keep a record of every obligation assumed by that unit.
(Amended 1977, No. 155 (Adj. Sess.), § 2, eff. March 29, 1978; 1999, No. 71 (Adj. Sess.), § 2.)
§ 1775 Cancellation and record of old bonds
When old notes, orders, or bonds are taken up, as provided in this subchapter, the treasurer of the municipal corporation shall keep a record of the same, and such old notes, orders, or bonds shall be cancelled.
§ 1776 Record
All ordinances or resolutions required by this subchapter to be enacted by the legislative branch of a municipal corporation shall be duly recorded in the office of the clerk of such municipal corporation.
§ 1777 Regulations
When a municipal corporation has established or provided a sinking fund for the retirement of a bond issue or other debt, the fund so established or provided shall be kept intact and separate from other monies at the disposal of such corporation, shall be accounted for as a pledged asset for the purpose of retiring such obligations, and shall not be appropriated or used for the current expenses of such corporation.
§ 1778 Registered obligations; authority to issue
A municipal corporation may issue registered bonds. If an original issue of bonds by such municipal corporation is registered, they shall be registered as hereinafter provided.
§ 1779 Registration on request
A municipal corporation, at the written request, duly acknowledged, of the owner or holder of one or more bonds, promissory notes, or certificates of indebtedness issued by it and payable to bearer or to a person or corporation named, or bearer, may change such bonds, notes, or certificates into registered obligations, payable only to the person or corporation whose name is properly indorsed thereon, as hereinafter provided.
§ 1780 Certificate of registration indorsed; when
When it shall be determined by a municipal corporation to issue registered bonds, the legislative branch of the municipal corporation shall direct the treasurer of such municipal corporation to indorse upon the back of each of such bonds over his or her official signature a certificate of registration in substantially the form hereinafter provided, inserting in the appropriate places the date of such registration, the name and address of the registered holder, and his or her own signature as transfer agent. Thereafter such bond shall be transferable only upon the books of such municipality upon presentation to the treasurer thereof with a written assignment duly acknowledged or proved.
§ 1781 Change of coupon bonds to registered bonds
In case a municipal corporation shall have issued coupon bonds and the owner or holder thereof has requested that such bonds be changed to registered bonds as herein provided, then upon written request of such change, duly acknowledged, the treasurer of such a municipal corporation, if directed by the city council of the city, selectboard of the town, school directors of the town school district, or other corresponding officers of the municipal corporation of which he or she is such treasurer, as the case may be, shall cut off and destroy the coupons on the bonds presented for registration and indorse upon the back of each of such bonds over his or her official signature a certificate of registration in substantially the form prescribed by section 1782 of this title, inserting in the appropriate places the date of such registration, the name and address of the registered holder, and his or her own signature as transfer agent. Thereafter such bond shall be transferable only upon the books of such municipality upon presentation to the treasurer thereof with a written assignment duly acknowledged or proved.
§ 1782 Registered bonds; form of certificate
In all cases where bonds are registered the following shall be the form of
CERTIFICATE OF REGISTRATION
It is hereby certified that upon the written request of the holder of the within bond, the coupons attached thereto, being ___________ in number, of ___________ each have been this day cut off and destroyed and that the within bond is hereby converted into a registered bond with the interest thereon payable _______________________________________ annually, and that such interest, as well as the principal, is payable to the registered holder thereof, his or her legal representatives, successors, or assigns at the time and place expressed on the face of such bond.
The within bond when registered is transferable only upon the books of the treasurer of _______________________________________ upon presentation to the treasurer with a written assignment duly acknowledged or proved.
Date _________________________________________ 20 ___________ .
Treasurer of _________________________________________
Date of registration.
Name and address of registered holder.
Signature of treasurer who acts as transfer agent.
(Amended 2017, No. 74, § 90.)
§ 1783 Registered bonds; indorsement conclusive evidence of authority
The indorsement of such certificate of registration upon any bond, note, or certificate by such treasurer shall be conclusive evidence that such treasurer was directed by the proper officers of the municipal corporation of which he or she was treasurer to convert such bond into a registered obligation.
(Amended 2017, No. 74, § 91.)
§ 1784 Registered bonds; treasurer to keep record
The treasurer of every such municipal corporation shall keep a register showing the number, date, amount, rate of interest, time when payable, and the name of the registered holder of the bonds, notes, and certificates originally registered or changed to registered obligations.
(Amended 2017, No. 74, § 92.)
§ 1785 Registered bonds; conversion not to affect liability
Such conversion shall in no respect or degree weaken or impair the obligation of such municipal corporation to pay such bond, note, or certificate so converted.
(Amended 2017, No. 74, § 93.)
§ 1786 Borrowing to pay current expenses in anticipation of taxes
(a) A municipal corporation, by its legislative branch, may borrow money by the issuance of its notes or orders for the purpose of paying current expenses of the municipal corporation. Such notes or orders, however, must mature within one year from date.
(b) A municipal corporation may also borrow money in anticipation of taxes in an amount not to exceed ninety percent of the amount of taxes assessed for such year and may issue its notes or orders therefor to mature not more than one year from the date of the note or order.
(c) The assistant judges may borrow money in the name of the county in anticipation of taxes.
§ 1786a Borrowing for public improvements and capital assets
(a) The voters of a municipality may authorize specific public improvements and the acquisition of capital assets and finance the same, temporarily or permanently, through debt instruments other than bonds for a term not to exceed the reasonably anticipated useful life of the improvements or assets as provided in this section.
(b) If the improvements or assets are to be financed for a term of five years or less, they shall be approved by the voters at an annual or special meeting duly warned for the purpose in accordance with the provisions of 17 V.S.A. chapter 55. However, the requirement of this subsection shall not apply to purchases made by selectboards under the provisions of 19 V.S.A. § 304(a)(3).
(c) If the improvements or assets are to be financed for a term of more than five years, the procedural provisions of sections 1755, 1756, and 1757 of this title shall apply. A vote on the question shall be held at a duly warned annual or special meeting and shall be by Australian ballot. The ballot shall be in substantially the following form:
“Shall the voters authorize (describe public improvement or acquisition) in an amount not to exceed ($ ........ ) to be financed over a period not to exceed (number of years).”
(d) Public improvements or assets approved under subsection (c) of this section may be financed for a period of five years or less.
(e) Debt instruments authorized under this section may be refunded in the manner provided in sections 1771 and 1772 of this title.
(Added 1995, No. 2, § 1, eff. Feb. 23, 1995; amended 2001, No. 64, § 22, eff. June 16, 2001.)
§ 1787 Application of chapter; charters and special acts to control
This chapter shall not affect rights allowed a municipal corporation by its charter provisions, nor any rights granted by special act of the Legislature. This chapter, except where inconsistent with such charter or special act, shall apply to the method of exercising all such rights.
(Amended 1989, No. 111, § 3, eff. June 22, 1989.)
§ 1788 Existing powers continued; emergencies
The existing power of a municipality to authorize public improvements by a majority vote in a meeting duly called and held and to finance the same temporarily by the issue of orders or notes, and to issue bonds therefor, is not repealed nor affected by the provisions of this subchapter. Such municipality may refund all or any portion of such temporary orders, notes, or bonds in the method provided by sections 1771 and 1772 of this title. Nevertheless, no public improvement which has been voted upon in the method provided by sections 1755 and 1756 of this title shall be voted upon in any such meeting, except in cases of emergency, in which the vote stating the emergency shall be conclusive evidence of its existence. The existing power of a municipality to refund obligations representing indebtedness accumulated in the ordinary administration of the affairs of such municipality, whether incurred for public improvements or for current expenses, and with or without vote of such municipality, is not repealed nor affected by the provisions of this subchapter, except that the method of such refunding shall be as provided in sections 1771 and 1772 of this title.
§ 1789 Alternative financing of assets
(a) A municipality, including a fire district, either singly or as a participant in an interlocal contract entered into under sections 4901 and 4902 of this title, may acquire personal property, fixtures, technology, and intellectual property by means of leases, lease-purchase agreements, installment sales agreements, and similar agreements wherein payment and performance on the part of the municipality is conditioned expressly upon the annual approval by the municipality of an appropriation sufficient to pay when next due rents, charges, and other payments accruing under such leases and agreements.
(b) The legislative body of the municipality shall enter into leases and agreements identified in subsection (a) of this section on behalf of the municipality and under such terms as it deems to be in the best interest of the municipality.
(c) The undertaking of a municipality to make payments under a lease or agreement identified in subsection (a) of this section shall not be a general or special obligation of the municipality, but shall be treated as a current operating expense. Payments made or to be made under such lease or agreement shall not be taken into account in calculating the debt limit of a municipality for any purpose.
(Added 2007, No. 79, § 5, eff. June 9, 2007.)
§ 1790 Emergency borrowing; all-hazard event or state of emergency
The legislative body of a municipality may borrow money, in the name of the municipal corporation, by issuance of its notes or orders for the purpose of paying expenses of the municipal corporation or for public improvements associated with an all-hazards event or a declared state of emergency pursuant to 20 V.S.A. chapter 1. The notes or orders shall be for a period of not more than five years or a term not to exceed the reasonably anticipated useful life of the improvements or assets financed by the notes or orders.
(Added 2025, No. 57, § 7, eff. July 1, 2025.)
Subchapter 2 Indebtedness for Public Utility Purposes
§ 1821 Definitions
When used in this subchapter:
(1) “Bond” means any bond or note issued by the municipal corporation and payable out of the net revenues from the operation of a public utility project.
(2) “Cost of operation and maintenance” shall mean the expenses for operation, maintenance, repairs, and ordinary replacements properly and directly attributable to the operation or ordinary maintenance of the public utility project.
(3) “Net revenues” shall mean revenues less cost of operation and maintenance.
(4) “Project” shall mean an undertaking for the acquisition, construction, reconstruction, improvement, financing, enlargement, extension, or betterment of any of the following public utility systems:
(A) Water systems or facilities as defined in chapter 89 of this title.
(B) Sewage disposal systems or facilities as defined in chapter 97 or 101 of this title.
(C) Systems or facilities for the generation, production, transmission, or distribution of gas (natural, artificial, or mixed) for lighting, heating, or power for public and private uses, as provided in 30 V.S.A. chapter 79 or by charter or special act.
(D) Systems or facilities for the generation, production, transmission, or distribution of electric energy, including the ownership, operation, and management of a municipal plant as defined in 30 V.S.A. § 2901 and other generation, production, transmission, and distribution facilities located within and without the State.
(E) Systems, facilities, and equipment for the collection, treatment, or disposal of solid waste, including sanitary landfills, and the generation, transmission, distribution, and sale of all products and forms of energy derived therefrom.
(5) “Revenues” mean all revenues, rates, fees, charges, rents, or other income and receipts received by the municipal corporation from any source, or accrued to the municipal corporation, or any department, board, or agency thereof, in connection with the management and operation of a public utility project or system, and shall also include any interest received on any monies or securities of the municipal corporation which are pledged to the payment of the municipal corporation’s bonds, and any federal or State grants-in-aid with respect to such project or system.
(Amended 1989, No. 111, § 5, eff. June 22, 1989.)
§ 1822 Powers; approval of voters
(a) In addition to the powers it may now or hereafter have, a municipal corporation otherwise authorized to own, acquire, improve, control, operate, or manage a public utility or project and to issue bonds pursuant to this subchapter, may also, by action of its legislative branch, exercise any of the following powers:
(1) to borrow money and issue bonds for the purposes of acquiring, improving, maintaining, financing, controlling, or operating the public utility or project, or for the purpose of selling, furnishing, or distributing the services, facilities, products, or commodities of such utility or project;
(2) to enter into contracts in connection with the issuance of bonds for any of the purposes enumerated in subdivision (1) of this subsection;
(3) to purchase, hold, and dispose of any of its bonds;
(4) to pledge or assign all or part of any net revenues of the public utility or project, to provide for or to secure the payment of the principal of and the interest on bonds issued in connection with such public utility or project;
(5) to do any and all things necessary or prudent to carry out the powers expressly granted or necessarily implied in this subchapter, including without limitation those powers enumerated in section 1824 of this title.
(b)(1) The bonds authorized under this section shall be in such form, shall contain such provisions, and shall be executed as may be determined by the legislative branch of the municipal corporation, but shall not be executed, issued, or made, and shall not be valid and binding, unless and until at least a majority of the legal voters of such municipal corporation present and voting at a duly warned annual or special meeting called for that purpose shall have first voted to authorize the same.
(2) The warning calling such a meeting shall state the purpose for which it is proposed to issue bonds, the estimated cost of the project, the amount of bonds proposed to be issued under this subchapter therefor, that such bonds are to be payable solely from net revenues, and shall fix the place where and the date on which such meetings shall be held and the hours of opening and closing the polls.
(3) The notice of the meeting shall be published and posted as provided in section 1756 of this title.
(4) When a majority of all the voters voting on the question at such meeting vote to authorize the issuance of bonds under this subchapter to pay for such project, the legislative body shall be authorized to issue bonds or enter into contracts, pledges, and assignments as provided in this subchapter.
(5) Sections 1757 and 1758 of this title shall apply to the proceedings taken hereunder, except that the form of ballot to be used shall be substantially as follows:
Shall bonds of the (name of municipality) to the amount of $_____ be issued under subchapter 2 of chapter 53 of Title 24, Vermont Statutes Annotated, payable only from net revenues derived from the (type) public utility system, for the purpose of paying for the following public utility project?
If in favor of the bond issue, make a cross (x) in this square □.
If opposed to the bond issue, make a cross (x) in this square □.
(c) The bonds authorized by this subchapter shall be sold at par, premium, or discount by negotiated sale, competitive bid, or to the Vermont Municipal Bond Bank.
(d) Notwithstanding the provisions of subsection (b) of this section, the legislative branch of a municipal corporation owning a municipal plant as defined in 30 V.S.A. § 2901 may authorize by resolution the issuance of bonds in an amount not to exceed 50 percent of the total assets of said municipal plant without the need for voter approval. Nothing in this subsection shall be interpreted as eliminating the requirement for approval from the Public Utility Commission pursuant to 30 V.S.A. § 108, where applicable.
(Amended 1989, No. 111, § 6, eff. June 22, 1989; 2019, No. 81, § 1.)
§ 1823 Payment exclusive; effect
(a) The bonds issued and contracts entered into in connection therewith as authorized in section 1822 of this title and the interest thereon shall be payable solely and exclusively from net revenues derived from the public utility system or project and shall not constitute general indebtedness of the municipal corporation nor be an obligation or liability upon the municipal corporation to pay the same from any funds of the municipal corporation other than such net revenues. No holder or holders of any contracts entered into or bonds issued under this subchapter shall ever have the right to compel any exercise of the taxing power of the municipal corporation to pay such contracts or bonds, or the interest thereon. A statement referring to the limited nature of the contract or bond and reciting that it had been entered into or issued under this subchapter shall be made plainly to appear in or upon each contract or bond.
(b) The bonds or contracts authorized by this subchapter shall not be affected by the restrictions and limitations of subchapter 1 of this chapter relating thereto.
(Amended 1989, No. 111, § 7, eff. June 22, 1989.)
§ 1824 Specific provisions
(a) Generally. Any pledge of net revenues or bond proceeds and earnings thereon made by a municipal corporation under this subchapter shall be binding from the time when the pledge is made. Net revenues or bond proceeds and earnings thereon to be pledged and thereafter received by the municipal corporation shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be binding against all parties having claims of any kind in tort, contract, or otherwise against the municipal corporation, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded except in the records of the municipal corporation.
(b) Special covenants. The contracts and bonds entered into and issued under section 1822 of this title may contain provisions relating to:
(1) pledging all or any part of the net revenues of the public utility system or project in order to secure the payment of the bonds, or any part thereof, subject to such agreements with bondholders as may then exist;
(2) the imposition or maintenance of rates, fees, or charges, subject to regulatory requirements, to generate revenues at least sufficient to provide for the costs of operation and maintenance of the public utility system and for payment of principal of and interest on all bonds issued in connection with such public utility as the same shall become due;
(3) the imposition or maintenance of rates, fees, and charges, subject to regulatory requirements, as a multiple of principal and interest payments on bonds of the municipality issued under this subchapter;
(4) periodic review of the financial condition of the public utility system for the purpose of estimating whether its revenues will be sufficient to comply with agreements with the holders of its bonds;
(5) limitations, terms, and conditions with respect to the refunding or redemption of the bonds;
(6) limitations, terms, and conditions with respect to the issuance of additional bonds in connection with the public utility system for which the bonds are issued, except bonds secured by a subordinate pledge of net revenues;
(7) limitations on the purpose to which the proceeds of sale of bonds may be applied and pledging the proceeds to secure the payment of the bonds or of any issue thereof;
(8) the procedure, if any, by which the terms of any agreement with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given;
(9) requirements for the maintenance and operation of the utility system in accordance with prudent utility practice and regulatory requirements;
(10) vesting in a trustee or trustees, within or without the State, the right to receive all or any part of the net revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply, and dispose of the same; and vesting in the trustee or trustees such rights, powers, and duties in trust as the trustee may need to recover the amounts pledged to the holders of the municipal corporation’s bonds and to enforce any covenants made by the municipal corporation to secure its bonds, and limiting or abrogating the right of the holders of its bonds to appoint a trustee under this subchapter or limiting the rights, powers, and duties of the trustee;
(11) prescribing what acts or omissions of the municipality shall constitute “events of default” and the terms and conditions upon which any or all of such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;
(12) limitations on the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, conditions, or obligations;
(13) a definition, subject to regulatory requirements, of the standard of care, maintenance, and operation of the public utility project, including the maintenance of insurance and the application of proceeds of policies of insurance and condemnation awards thereon;
(14) the pledge of proceeds to be derived upon the sale or disposition of the public utility project for the purpose of paying bonds issued by the municipal corporation for such project or defeasing the lien securing said bonds;
(15) limitations on the right of the municipal corporation to encumber, sell, lease, or otherwise dispose of property used in public service operations of the public utility system; except for the sale, lease, or disposition of a part of such property, which in the reasonable judgment of the municipality has become unserviceable, obsolete, worn out, or no longer necessary in the operations of the public utility system or has been replaced by other property, and except for encumbrances in connection with bonds secured by a subordinate pledge of net revenues;
(16) the bonds to be issued, the issuance of its bonds in escrow or otherwise, and the use and disposition of the proceeds thereof; provisions for the replacement of lost, destroyed, or mutilated bonds; prohibitions against extending the time for the payment of its bonds or interest thereon and to redeem its bonds and provisions for their redemption and the terms and conditions thereof; and
(17) the creation of special funds for construction or operating costs, debt service, reserve, or similar purposes and covenanting as to the use and disposition and investment of the monies held in such funds.
(Amended 1989, No. 111, § 8, eff. June 22, 1989; 2017, No. 74, § 94.)
§ 1825 Construction
Nothing contained in this subchapter shall be so construed as authorizing the establishment or operation of a public utility. The provisions of this subchapter shall apply only to a public utility authorized by a special act or under the general law. Bonds may be issued hereunder for public utility projects of the municipal corporation notwithstanding that any other law may provide for the issuance of bonds for like purposes. This subchapter is remedial in nature and the powers hereby granted shall be liberally construed to effectuate the purposes hereof, and to this end the municipal corporation shall have powers necessary and prudent to carry out the purposes hereof in addition to the powers expressly conferred in this subchapter.
(Amended 1989, No. 111, § 9, eff. June 22, 1989.)
§ 1826 Actions barred
(a) No action shall be brought directly or indirectly attacking, questioning, or in any manner contesting the legality or validity of municipal revenue bonds for public utility purposes, issued or unissued, voted by any municipality or by any other municipal corporate entity, after six months from the date upon which voters in any such municipality or other municipal corporate entity met pursuant to warning and voted affirmatively to issue bonds to defray costs of municipal utility purposes or upon vote of a question of recission thereof whichever occurs later.
(b) This section shall be liberally construed to effect the legislative purpose to validate bonds issued or authorized by municipalities or other municipal corporate entities for public utility purposes, and to bar every right to question in any manner the validity of a bond voted by it for public utility purposes, and to bar every remedy therefor notwithstanding any defects or irregularities, jurisdictional or otherwise, after expiration of the six-month period.
(Added 1975, No. 57, § 2, eff. April 18, 1975.)
§ 1827 Enforcement of bond obligations
The municipal corporation shall have power by resolution of its legislative body, adopted in connection with the issuance of the bonds and subject to approval under 30 V.S.A. § 108 to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right in the event of an “event of default” as defined in any contract with the holder or holders of such bonds or the trustee or trustees therefor:
(1) By suit, action, or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the public utility system of the municipal corporation or any part or parts thereof. If such receiver be appointed he or she may enter and take possession of such public utility system of the municipal corporation or any part or parts thereof and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as the municipal corporation itself might do and shall deposit such monies in a separate account or accounts and apply the same in accordance with the obligations of the municipal corporation as the court shall direct. All actions of receivers authorized under this section shall be subject to the same regulatory requirements applicable to the municipal utility. Provided, however, that notwithstanding the appointment of a receiver the municipal corporation shall retain the right subject to regulatory requirements to fix the rates, fees, and charges to be charged by the public utility system, the revenues from which are pledged to pay bonds and the interest thereon, and to receive from the receiver from time to time that portion of any revenues collected which shall be allocable to the municipal corporation on account of costs for public utility system maintenance, operation, repair, and regulation or other costs payable by the municipal corporation.
(2) By suit, action, or proceedings in any court of competent jurisdiction to require the legislative body of the municipal corporation and the treasurer of the municipal corporation to account as if it, he, or she were the trustee of an express trust. Any such resolution shall constitute a contract between the municipal corporation and the holders of bonds of such issue.
(Added 1989, No. 111, § 10, eff. June 22, 1989.)
§ 1828 Rights of holders
Any holder or holders of bonds issued under this subchapter, including a trustee or trustees for holders of such bonds, shall have the right in addition to all other rights:
(1) By extraordinary relief or other suit, action, or proceedings in any court of competent jurisdiction to enforce his, her, or their rights against the municipal corporation, the legislative body, any other proper officer, agent, or employee of any of them, including the right to require the municipality, the legislative body, and any proper officer, agent, or employee of any of them, to the extent consistent with the reasonable operation of a public utility, to fix and collect rates and charges subject to State and federal regulatory approval, adequate to carry out any agreement as to, or pledge of revenues, and to require the municipal corporation, the legislative body and any officer, agent, or employee of any of them to carry out any other covenants or agreements and to perform its and their duties under this subchapter.
(2) By action or suit to enjoin any acts or things which may be unlawful or a violation of the rights of such holder of bonds.
(Added 1989, No. 111, § 11, eff. June 22, 1989.)
Subchapter 3 Indebtedness for Parking Lots and Meters
§§ 1861-1874 Repealed
[Repealed]
2013, No. 122 (Adj. Sess.), § 1.
Subchapter 4 Form of Bonds, Notes, and Certificates
§ 1881 Form of bonds, notes, and certificates
Notwithstanding any general or special law or charter provision to the contrary, a municipal corporation may issue bonds, notes, or certificates in coupon form payable to the bearer, in registered form without coupons, or in book entry form.
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
§ 1882 Signature
Bonds, notes, or certificates other than those in book entry form shall be signed by the manual or facsimile signature of the treasurer of the municipal corporation or his or her deputy and countersigned by the manual or facsimile signature of the clerk of the municipal corporation or his or her deputy or in such other manner as the legislative branch of the municipal corporation shall determine, and the interest coupons thereon, if any, shall bear the facsimile signature of the treasurer of the municipal corporation. The date of issuance, place of payment, rate of interest, time of maturity, provisions with respect to redemption prior to maturity, at par or at a premium, and other particulars as to the form of such bonds, notes, or certificates within the limitations mentioned herein shall be determined by the legislative branch of the municipal corporation as it may deem for the best interest of the municipal corporation.
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
§ 1883 Transfer agent
(a)(1) The treasurer of the municipal corporation shall act as transfer agent or registrar for the exchange or transfer of registered bonds, notes, or certificates or maintain the records so that bonds or notes in book entry form may be effected or contract with or otherwise designate a bank, trust company, or other person to act as transfer agent or registrar for the bonds, notes, or certificates, or maintain the records so that bonds or notes in book entry form may be effected.
(2) Such bank, trust company, or other person, which may include the federal government or any of its agencies or instrumentalities, or any officer, agency, or instrumentality of the State, may be located or have its principal office inside or outside the State; provided, however, that any such transfer agent or registrar (other than the federal government or any of its agencies or instrumentalities) not domiciled in the State or having its principal business in the State, shall qualify and be authorized to do business in the State, or shall otherwise render itself amenable to personal service of process in the State and shall submit itself to personal jurisdiction in the courts of the State.
(b) Bonds, notes, or certificates in book entry form shall be effected by means of entries on the records of the treasurer of the municipal corporation or his or her designee which shall reflect the description of the issue, the principal amount, the interest rate, the maturity date, and the owner of the bonds, notes, or certificates and such other information as is deemed appropriate.
(c) The treasurer of the municipal corporation or other designated person may effect conversion between book entry bonds, notes, or certificates and registered bonds, notes, or certificates for owners of bonds, notes, or certificates who request such a change. The treasurer of the municipal corporation or other designated transfer agent or registrar shall issue a confirmation of the transaction in the form of a written advice.
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
§ 1884 Repealed
[Repealed]
2015, No. 29, § 14.
§ 1885 Application
The provisions of this subchapter shall be effective with respect to bonds, notes, or certificates which have heretofore been approved by referendum authorizing bonds in coupon and registered form, or in coupon form only, and such bonds, notes, or certificates need not be resubmitted for a further vote or referendum for the purpose of authorizing the bonds, notes, or certificates in registered form or book entry form only.
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
§ 1886 Additional powers
The treasurer of the municipal corporation or his or her designee shall have such additional powers as are necessary to effectuate the purposes of this act. This act supersedes any existing general or special law or charter provision with respect to the matters contained herein as they apply to the issuance of bonds, notes, or certificates but shall not diminish or restrict any powers heretofore granted by law.
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
§ 1887 Short title
The provisions of this subchapter shall be known as the “Vermont Municipal Bond Registration Act.”
(Added 1983, No. 24, § 1, eff. April 6, 1983.)
Subchapter 5 Statewide Tax Increment Financing
§ 1891 Definitions
As used in this subchapter:
(1) “Municipality” means a city, town, or incorporated village.
(2) “District” or “TIF” means a tax increment financing district.
(3) “Legislative body” means the mayor and alderboard, the city council, the selectboard, and the president and trustees of an incorporated village, as appropriate.
(4) “Improvements” means the installation, new construction, or reconstruction of infrastructure that will serve a public purpose and fulfill the purpose of tax increment financing districts as stated in section 1893 of this subchapter, including utilities, transportation, public facilities and amenities, land and property acquisition and demolition, and site preparation. “Improvements” also means the funding of debt service interest payments for a period of up to two years, beginning on the date on which the first debt is incurred.
(5) “Original taxable value” means the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property located within the tax increment financing district as of the creation date as set forth in section 1892 of this subchapter, provided that no parcel within the district shall be divided or bisected by the district boundary.
(6) “Related costs” means expenses incurred and paid by the municipality, exclusive of the actual cost of constructing and financing improvements, that are directly related to the creation and implementation of the tax increment financing district, including reimbursement of sums previously advanced by the municipality for those purposes. Related costs may include direct municipal expenses such as departmental or personnel costs related to creating or administering the district to the extent they are paid from the tax increment realized from municipal and not education taxes and using only that portion of the municipal increment above the required percentage in servicing the debt as determined in accordance with subsection 1894(f) of this subchapter.
(7) “Financing” means debt incurred, including principal, interest, and any fees or charges directly related to that debt, or other instruments or borrowing used by a municipality to pay for improvements in a tax increment financing district, only if authorized by the legal voters of the municipality in accordance with section 1894 of this subchapter. Payment for the cost of district improvements may also include direct payment by the municipality using the district increment. However, such payment is also subject to a vote by the legal voters of the municipality in accordance with section 1894 of this subchapter and, if not included in the tax increment financing plan approved under subsection 1894(d) of this subchapter, is also considered a substantial change and subject to the review process provided by subdivision 1901(2)(B) of this subchapter. If interfund loans within the municipality are used as the method of financing, no interest shall be charged. Bond anticipation notes may be used as a method of financing; provided, however, that bond anticipation notes shall not be considered a first incurrence of debt pursuant to subsection 1894(a) of this subchapter.
(8) “Committed” means pledged and appropriated for the purpose of the current and future payment of tax increment financing incurred in accordance with section 1894 of this subchapter and related costs as defined in this section.
(Added 1985, No. 87; amended 2005, No. 184 (Adj. Sess.), § 2a; 2007, No. 190 (Adj. Sess.), § 54, eff. June 6, 2008; 2013, No. 80, § 2; 2019, No. 14, § 66, eff. April 30, 2019; 2023, No. 72, § 33, eff. June 19, 2023.)
§ 1892 Creation of district
(a) Upon a finding that such action will serve the public purposes of this subchapter and subject to subsection (d) of this section, the legislative body of any municipality may create within its jurisdiction a special district to be known as a tax increment financing district. The district shall be described by its boundaries and the properties therein and the district boundary shall be shown on a plan entitled “Proposed Tax Increment Financing District (municipal name), Vermont.” The legislative body shall hold one or more public hearings, after public notice, on the proposed plan.
(b) When adopted by the act of the legislative body of that municipality, the plan shall be recorded with the municipal clerk and lister or assessor, and the creation of the district shall occur at 12:01 a.m. on April 1 of the calendar year so voted by the municipal legislative body.
(c) A municipality that has approved the creation of a district under this section may designate a coordinating agency from outside the municipality’s departments or offices to administer the district to ensure compliance with this subchapter and any statutory or other requirements and may claim this expense as a related cost. However, the coordinating agency shall not be authorized to enter into any agreement or make any covenant on behalf of the municipality.
(d) The following municipalities have been authorized to use education tax increment financing for a tax increment financing district:
(1) the City of Burlington, Downtown;
(2) the City of Burlington, Waterfront;
(3) the Town of Milton, North and South;
(4) the City of Newport;
(5) the City of Winooski;
(6) the Town of Colchester;
(7) the Town of Hartford;
(8) the City of St. Albans;
(9) the City of Barre;
(10) the Town of Milton, Town Core; and
(11) the City of South Burlington.
(e) On or before January 15, 2018, the Joint Fiscal Office, with the assistance of the consulting Legislative Economist, the Department of Taxes, the State Auditor, and the Agency of Commerce and Community Development in consultation with the Vermont Economic Progress Council, shall examine and report to the General Assembly on the use of both tax increment financing districts and other policy options for State assistance to municipalities for funding infrastructure in support of economic development and the capacity of Vermont to utilize TIF districts moving forward.
(f) The report shall include:
(1) a recommendation for a sustainable statewide capacity level for TIFs or comparable economic development tools and relevant permitting criteria;
(2) the positive and negative impacts on the State’s fiscal health of TIFs and other tools, including the General Fund and Education Fund;
(3) the economic development impacts on the State of TIFs and other tools, both positive and negative;
(4) the mechanics for ensuring geographic diversity of TIFs or other tools throughout the State; and
(5) the parameters of TIFs and other tools in other states.
(g) Beginning in 2021 and every four years thereafter, on or before January 15, the Joint Fiscal Office, with the assistance of the consulting Legislative Economist, the Department of Taxes, and the Agency of Commerce and Community Development in consultation with the Vermont Economic Progress Council, shall examine the recommendations and conclusions of the tax increment financing capacity study and report created pursuant to subsection (e) of this section, and shall submit to the Emergency Board and to the House Committees on Commerce and Economic Development and on Ways and Means and the Senate Committees on Economic Development, Housing and General Affairs and on Finance an updated summary report that includes:
(1) an assessment of any material changes from the initial report concerning TIFs and other tools and an assessment of the health and sustainability of the tax increment financing system in Vermont;
(2) short-term and long-term projections on the positive and negative fiscal impacts of the TIF districts or other tools, as applicable, that are currently active or authorized in the State;
(3) a review of the size and affordability of the net indebtedness for TIF districts and an estimate of the maximum amount of new long-term net debt that prudently may be authorized for TIF districts or other tools in the next fiscal year.
(h) Annually, based on the analysis and recommendations included in the reports required in this section, the General Assembly shall consider the amount of new long-term net debt that prudently may be authorized for TIF districts in the next fiscal year and determine whether to expand the number of TIF districts or similar economic development tools in addition to the previously approved districts referenced in subsection (d) of this section and the six additional districts authorized by 32 V.S.A. § 5404a(f).
(Added 1985, No. 87; amended 2013, No. 80, § 3; 2017, No. 69, § J.2, eff. June 28, 2017; 2018, No. 11 (Sp. Sess.), § H.30.)
§ 1893 Purpose
The purpose of tax increment financing districts is to provide revenues for improvements that serve the district and related costs, which will stimulate development or redevelopment within the district, provide for employment opportunities, improve and broaden the tax base, or enhance the general economic vitality of the municipality, the region, or the State.
(Added 1985, No. 87; amended 2005, No. 184 (Adj. Sess.), § 2b; 2007, No. 190 (Adj. Sess.), § 55, eff. June 6, 2008.)
§ 1894 Power and life of district
(a) Incurring indebtedness.
(1) A municipality approved under 32 V.S.A. § 5404a(h) may incur indebtedness against revenues of the tax increment financing district at any time during a period of up to five years following the creation of the district. If no debt is incurred during this five-year period, the district shall terminate, unless the Vermont Economic Progress Council grants an extension to a municipality pursuant to subsection (d) of this section. However, if any indebtedness is incurred within the first five years after the creation of the district, then the district has a total of ten years after the creation of the district to incur any additional debt.
(2) Any indebtedness incurred under subdivision (1) of this subsection may be retired over any period authorized by the legislative body of the municipality.
(3) The district shall continue until the date and hour the indebtedness is retired or, if no debt is incurred, five years following the creation of the district.
(b) Use of the education property tax increment. For only debt incurred within the period permitted under subdivision (a)(1) of this section after creation of the district, and related costs, up to 70 percent of the education tax increment may be retained for up to 20 years, beginning with the education tax increment generated the year in which the first debt incurred for improvements financed in whole or in part with incremental education property tax revenue. Upon incurring the first debt, a municipality shall notify the Department of Taxes and the Vermont Economic Progress Council of the beginning of the 20-year retention period of education tax increment.
(c) Use of the municipal property tax increment. For only debt incurred within the period permitted under subdivision (a)(1) of this section after creation of the district, and related costs, not less than 85 percent of the municipal tax increment shall be retained to service the debt, beginning the first year in which debt is incurred, pursuant to subsection (b) of this section.
(d) Approval of tax increment financing plan. The Vermont Economic Progress Council shall approve a municipality’s tax increment financing plan prior to a public vote to pledge the credit of that municipality under subsection (h) of this section. The tax increment financing plan shall include all information related to the proposed financing necessary for approval by the Council and to assure its viability and consistency with the tax increment financing district plan approved by the Council pursuant to 32 V.S.A. § 5404a(h). The tax increment financing plan may be submitted to and approved by the Council concurrently with the tax increment financing district plan. If no indebtedness is incurred within five years after the creation of the district, the municipality may submit an updated executive summary of the tax increment financing district plan and an updated tax increment financing plan to the Council to obtain approval for a five-year extension of the period to incur indebtedness; provided, however, that the updated plan is submitted prior to the five-year termination date of the district. The Council shall review the updated tax increment financing plan to determine whether the plan has continued viability and consistency with the approved tax increment financing plan. Upon approval of the updated tax increment financing plan, the Council shall grant an extension of the period to incur indebtedness of no more than five years. The submission of an updated tax increment financing plan as provided in this subsection shall operate as a stay of the termination of the district until the Council has determined whether to approve the plan.
(e) Proportionality. The municipal legislative body may commit the State education and municipal tax increments received from properties contained within the tax increment financing district for the financing of improvements and for related costs only in the same proportion by which the improvement or related costs serve the district, as determined by the Council when approved in accordance with 32 V.S.A. § 5404a(h), and in the case of an improvement that does not reasonably lend itself to a proportionality formula, the Council shall apply a rough proportionality and rational nexus test.
(f) Required share of increment. If any tax increment utilization is approved pursuant to 32 V.S.A. § 5404a(h), not more than 70 percent of the State property tax increment and not less than 85 percent of the municipal tax increment may be approved by the Council or used by the municipality to service this debt.
(g) Adjustment of percentage. During the tenth year following the creation of the tax increment financing district, the municipality shall submit an updated tax increment financing plan to the Council which shall include adjustments and updates of appropriate data and information sufficient for the Council to determine, based on tax increment financing debt actually incurred and the history of increment generated during the first ten years, whether the percentages approved under subsection (f) of this section should be continued or adjusted to a lower percentage to be retained for the remaining duration of the retention period and still provide sufficient municipal and education increment to service the remaining debt.
(h) Vote required on each instance of debt. Notwithstanding any provision of any municipal charter, each instance of borrowing to finance or otherwise pay for tax increment financing district improvements shall occur only after the legal voters of the municipality, by a majority vote of all voters present and voting on the question at a special or annual municipal meeting duly warned for the purpose, authorize the legislative body to pledge the credit of the municipality, borrow, or otherwise secure the debt for the specific purposes so warned; provided that each request to pledge the credit of the municipality for the purposes of financing tax increment financing district improvements shall include the new amount of debt proposed to be incurred and the total outstanding tax increment financing debt approved to date.
(i) Notice to voters. A municipal legislative body shall provide information to the public prior to the public vote required under subsection (h) of this section. This information shall include the amount and types of debt and related costs to be incurred, including principal, interest, and fees, terms of the debt, the improvements to be financed, the expected development to occur because of the improvements, and notice to the voters that if the tax increment received by the municipality from any property tax source is insufficient to pay the principal and interest on the debt in any year, for whatever reason, including a decrease in property value or repeal of a State property tax source, unless determined otherwise at the time of such repeal, the municipality shall remain liable for the full payment of the principal and interest for the term of indebtedness. If interfund loans within the municipality are used, the information must also include documentation of the terms and conditions of such loan. If interfund loans within the municipality are used as the method of financing, no interest shall be charged.
(Added 1985, No. 87; amended 1987, No. 204 (Adj. Sess.), § 1; 2005, No. 184 (Adj. Sess.), § 2c; 2007, No. 190 (Adj. Sess.), § 56, eff. June 6, 2008; 2011, No. 45, § 15, eff. May 24, 2011; 2013, No. 80, § 4; 2013, No. 174 (Adj. Sess.), §§ 8, 9, eff. June 4, 2014; 2017, No. 69, § J.3. eff. June 28, 2017.)
§ 1895 Original taxable value
(a) Certification. As of the date the district is created, the lister or assessor for the municipality shall certify the original taxable value and shall certify to the legislative body in each year thereafter during the life of the district the amount by which the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property located within the tax increment financing district has increased or decreased relative to the original taxable value.
(b) Boundary of the district. No adjustments to the physical boundary lines of a district shall be made after the approval of a tax increment financing district plan.
(Added 1985, No. 87; amended 2013, No. 80, § 5; 2013, No. 174 (Adj. Sess.), § 10, eff. June 4, 2014; 2023, No. 72, § 34, eff. June 19, 2023.)
§ 1896 Tax increments
(a) In each year following the creation of the district, the listers or assessor shall include not more than the original taxable value of the real property in the assessed valuation upon which the treasurer computes the rates of all taxes levied by the municipality and every other taxing district in which the tax increment financing district is situated; but the treasurer shall extend all rates so determined against the entire assessed valuation of real property for that year. In each year, the municipality shall hold apart, rather than remit to the taxing districts, that proportion of all taxes paid that year on the real property in the district that the excess valuation bears to the total assessed valuation. The amount held apart each year is the “tax increment” for that year. Not more than the percentages established pursuant to section 1894 of this subchapter of the municipal and State education tax increments received with respect to the district and committed for the payment for financing for improvements and related costs shall be segregated by the municipality in a special tax increment financing account and in its official books and records until all capital indebtedness of the district has been fully paid. The final payment shall be reported to the treasurer, who shall thereafter include the entire assessed valuation of the district in the assessed valuations upon which municipal and other tax rates are computed and extended and thereafter no taxes from the district shall be deposited in the district’s tax increment financing account.
(b) [Repealed.]
(c) Notwithstanding any charter provision or other provision, all property taxes assessed within a district shall be subject to the provision of subsection (a) of this section. Special assessments levied under chapters 76A or 87 of this title or under a municipal charter shall not be considered property taxes for the purpose of this section if the proceeds are used exclusively for operating expenses related to properties within the district, and not for improvements within the district, as defined in subdivision 1891(4) of this title.
(d) Amounts held apart under subsection (a) of this section shall only be used for financing and related costs as defined in section 1891 of this subchapter.
(e) In each year, a municipality shall remit not less than the aggregate tax due on the original taxable value to the Education Fund.
(Added 1985, No. 87; amended 1987, No. 204 (Adj. Sess.), § 2; 2005, No. 184 (Adj. Sess.), § 2d; 2007, No. 66, § 24, eff. July 1, 2006; 2007, No. 190 (Adj. Sess.), § 57, eff. June 6, 2008; 2013, No. 80, § 6; 2013, No. 174 (Adj. Sess.), § 11, eff. June 4, 2014; 2015, No. 57, § 63; 2023, No. 72, § 35, eff. June 19, 2023.)
§ 1897 Repealed
[Repealed]
2013, No. 80, § 7.
§ 1898 Powers supplemental; construction
(a) The powers conferred by this subchapter are supplemental and alternative to other powers conferred by law, and this subchapter is intended as an independent and comprehensive conferral of powers to accomplish the purposes set forth herein.
(b) A municipality shall have power to issue from time to time general obligation bonds, revenue bonds, or revenue bonds also backed by the municipality’s full faith and credit in its discretion to finance the undertaking of any improvements wholly or partly within such district. If revenue bonds are issued, such bonds shall be made payable, as to both principal and interest, solely from the income proceeds, revenues, tax increments, and funds of the municipality derived from or held in connection with its undertaking and carrying out of improvements under this chapter.
(c) Bonds issued under the provisions of this chapter are declared to be issued for an essential public and governmental purpose.
(d) Bonds issued under this section shall be authorized by resolution or ordinance of the local governing body and may be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in registered form, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium or payment, at such place or places, and be subject to such terms of redemption, such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.
(e) [Repealed.]
(f) Such bonds may be sold at not less than par at public or private sales held after notice published prior to such sale in a newspaper having a general circulation in the municipality.
(g) In case any of the public officials of the municipality whose signatures appear on any bonds or coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.
(h) In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security therefor, any such bond reciting in substance that it has been issued by the municipality in connection with an improvement, as herein defined, shall be conclusively deemed to have been issued for such purpose and such improvement shall be conclusively deemed to have been planned, located, and carried out in accordance with the provisions of this chapter.
(i) [Repealed.]
(Added 1985, No. 87; amended 1987, No. 204 (Adj. Sess.), §§ 3-6; 2005, No. 184 (Adj. Sess.), § 2f; 2007, No. 190 (Adj. Sess.), § 59, eff. June 6, 2008; 2009, No. 54, § 37, eff. June 1, 2009; 2013, No. 80, § 8.)
§ 1899 Bonds as legal investments
All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking or investment business; all insurance companies, insurance associations, and other persons carrying on an insurance business; and all executors, administrators, curators, 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 other obligations issued by a municipality pursuant to this chapter. It is the purpose of this section to authorize any persons, political subdivisions, and officers, public or private, to use any funds owned or controlled by them for the purchase of any such bonds or other obligations. Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities.
(Added 1985, No. 87.)
§ 1900 Distribution
In addition to all other provisions of this subchapter, with respect to any tax increment financing district, of the municipal and education tax increments received in any tax year that exceed the amounts committed for the payment of the financing for improvements and related costs in the district, equal portions of each increment may be retained for the following purposes: prepayment of principal and interest on the financing, placed in a special account required by section 1896 of this subchapter and used for future financing payments, or used for defeasance of the financing. Any remaining portion of the excess municipal tax increment shall be distributed to the city, town, or village budget, in proportion that each budget bears to the combined total of the budgets unless otherwise negotiated by the city, town, or village; and any remaining portion of the excess education tax increment shall be distributed to the Education Fund.
(Added 1987, No. 204 (Adj. Sess.), § 7; amended 2005, No. 184 (Adj. Sess.), § 2g; 2007, No. 190 (Adj. Sess.), § 60, eff. June 6, 2008; 2013, No. 80, § 9.)
§ 1901 Information reporting
Every municipality with an active tax increment financing district shall:
(1) Develop a system, segregated for the tax increment financing district, to identify, collect, and maintain all data and information necessary to fulfill the reporting requirements of this section, including performance measures.
(2) Throughout the year, as required by events:
(A) provide notification to the Vermont Economic Progress Council and the Department of Taxes regarding any tax increment financing debt obligations, public votes, or votes by the municipal legislative body immediately following such obligation or vote on a form prescribed by the Council, including copies of public notices, agendas, minutes, vote tally, and a copy of the information provided to the public in accordance with subsection 1894(i) of this subchapter;
(B) submit any proposed substantial changes to be made to the approved tax increment district plan and approved financing plan to the Council for review, only after receiving approval for the substantial change through a vote of the municipal legislative body.
(3) Annually:
(A) Ensure that the tax increment financing district account required by section 1896 of this subchapter is subject to the annual audit prescribed in sections 1681 and 1690 of this title. Procedures must include verification of the original taxable value and annual and total municipal and education tax increments generated, expenditures for debt and related costs, and current balance.
(B) On or before February 15 of each year, on a form prescribed by the Council, submit an annual report to the Vermont Economic Progress Council and the Department of Taxes, including the information required by subdivision (2) of this section if not already submitted during the year, all information required by subdivision (A) of this subdivision (3), and the information required by 32 V.S.A. § 5404a(i), including performance measures and any other information required by the Council or the Department of Taxes.
(Added 2007, No. 190 (Adj. Sess.), § 62, eff. June 6, 2008; amended 2013, No. 80, § 10; 2013, No. 174 (Adj. Sess.), § 12, eff. June 4, 2014; 2015, No. 11, § 27; 2015, No. 57, § 62, eff. June 11, 2015.)
Subchapter 6 Municipal Tax Increment Financing
§ 1903 Definitions
As used in this subchapter:
(1) “District” or “TIF” means a tax increment financing district.
(2) “Improvements” means the installation, new construction, or reconstruction of infrastructure to benefit a municipal tax increment financing district, including utilities, transportation, public facilities and amenities, land and property acquisition and demolition, and site preparation.
(3) “Legislative body” means the mayor and alderboard, the city council, the selectboard, or the president and trustees of an incorporated village, as appropriate.
(4) “Municipality” means a city, town, or incorporated village.
(5) “Original taxable value” means the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property located within the tax increment financing district as of the creation date as set forth in section 1904 of this subchapter, provided that no parcel within the district shall be divided or bisected by the district boundary.
(6) “Related costs” means expenses incurred and paid by the municipality, exclusive of the actual cost of constructing and financing improvements, that are directly related to the creation and implementation of a municipal tax increment financing district, including reimbursement of sums previously advanced by the municipality for those purposes, direct municipal expenses such as departmental or personnel costs related to creating or administering the project, and audit costs allocable to the district.
(Added 2017, No. 69, § J.7, eff. June 28, 2017.)
§ 1904 Municipal tax increment financing district
(a) General authority. Notwithstanding any provision of subchapter 5 of this chapter or 32 V.S.A. § 5404a to the contrary, upon approval of the legislative body of any municipality, a municipality may create a municipal tax increment financing district, and may incur debt to provide funding for improvements and related costs for the district.
(b) Municipal approval; voter approval.
(1) The legislative body of the municipality shall hold one or more public hearings to consider a municipal tax increment financing plan. Following public notice, hearing, and opportunity to comment, the legislative body of the municipality may grant approval of the plan.
(2) When adopted by the act of the legislative body of that municipality, the plan shall be recorded with the municipal clerk and lister or assessor, and the creation of the district shall occur at 12:01 a.m. on April 1 of the calendar year so voted by the municipal legislative body.
(3) The municipality may only incur debt for the project if the voters of the municipality approve the debt obligation by a majority vote at a regular or special meeting for which voting upon the debt obligation was properly warned.
(4) Following final voter approval, the municipality has up to five years to incur debt pursuant to the financing plan.
(c) Life of district.
(1) A municipality may incur indebtedness against revenues of the municipal tax increment financing district over any period authorized by the legislative body of the municipality.
(2) Any indebtedness incurred under subdivision (1) of this subsection may be retired over any period authorized by the legislative body of the municipality.
(3) The district shall continue until the date and hour the indebtedness is retired or, if no debt is incurred, after the period authorized by the legislative body of the municipality to incur indebtedness.
(d) Financing. During the life of an active district, the following apply, notwithstanding any provision of law to the contrary:
(1) Valuation.
(A) Within 30 days of voter approval pursuant to subsection (b) of this section, the lister or assessor for a municipality shall certify to the legislative body of the municipality the original taxable value of a tax increment financing district as of the date the voters approved the debt obligation.
(B) On or before June 30 following voter approval and annually thereafter, the lister or assessor shall assess and certify to the legislative body the current value of a project parcel.
(2) Tax rate.
(A) The lister or assessor shall use the original taxable value of a project parcel when computing the municipal tax rate.
(B) When calculating the amount of tax due on a project parcel, the treasurer shall apply the municipal tax rate to the current assessed value, rather than the original taxable value.
(3) Tax increment.
(A) The “tax increment” is the amount of tax paid on a project parcel, as calculated pursuant to subdivision (2)(B) of this subsection (d) using the current assessed value, that exceeds the amount of tax that would have been due if the tax rate were applied to the original taxable value.
(B) The municipality may retain any share of the municipal tax increment to service the debt, beginning the first year in which debt is incurred.
(C) A municipal tax increment financing district created pursuant to this subchapter is not authorized to retain any education property tax increment.
(D) A municipality shall segregate the tax increment in a special account and in its official books and records.
(4) Use of tax increment.
(A) As of each date the municipality receives a tax payment and retains a portion of the tax increment pursuant to this section, the municipality shall use the portion of the municipal tax increment that is necessary to pay costs actually incurred as of that date for debt service and related costs.
(B) If, after paying for improvements and related costs, there remains any excess portion of the tax increment, the municipality may retain the increment to prepay principal and interest on the financing, use for future financing payments, or use for defeasance of the financing.
(e) Annual audit.
(1) The municipality shall ensure that the segregated account for the tax increment financing district required by this section is subject to the annual audit requirements prescribed in sections 1681 and 1690 of this title.
(2) Any audit procedures shall include verification of the original taxable value and current assessed value, expenditures for project debt service and related costs, annual and total tax increment funds generated, and allocation of tax increment funds.
(Added 2017, No. 69, § J.7, eff. June 28, 2017.)
Subchapter 7 Community and Housing Infrastructure Program
§ 1906 Definitions
As used in this subchapter:
(1) “Affordable housing” has the same meaning as in section 4303 of this title.
(2) “Affordable housing development” means a housing development of which at least 15 percent of the units are affordable housing units. Affordable units shall be subject to covenants or restrictions that preserve their affordability until all indebtedness for the housing infrastructure project of which the housing development is part has been retired.
(3) “Brownfield” means a property on which the presence or potential presence of a hazardous material, pollutant, or contaminant complicates the expansion, development, redevelopment, or reuse of the property.
(4) “Committed” means pledged and appropriated for the purpose of the current and future payment of financing and related costs.
(5) “Developer” means the person undertaking to construct a housing development.
(6) “Financing” means debt, including principal, interest, and any fees or charges directly related to that debt, incurred by a sponsor, or other instruments or borrowing used by a sponsor, to pay for a housing infrastructure project and, in the case of a sponsor that is a municipality, authorized by the municipality pursuant to section 1910a of this subchapter.
(7) “Housing development” means the construction, rehabilitation, or renovation of any building on a housing development site approved under this subchapter.
(8) “Housing development site” means the parcel or parcels encompassing a housing development as authorized by a municipality pursuant to section 1908 of this subchapter.
(9) “Housing infrastructure agreement” means a legally binding agreement to finance and develop a housing infrastructure project and to construct a housing development among a municipality, a developer, and, if applicable, a third-party sponsor.
(10) “Housing infrastructure project” means one or more improvements authorized by a municipality pursuant to section 1908 of this subchapter.
(11) “Improvements” means:
(A) the installation, construction, or reconstruction of infrastructure that will serve a public good and fulfill the purpose stated in section 1907 of this subchapter; and
(B) the funding of debt service interest payments for a period of up to four years, beginning on the date on which the debt is first incurred.
(12) “Legislative body” means the mayor and alderboard, the city council, the selectboard, and the president and trustees of an incorporated village, as appropriate.
(13) “Lifetime education property tax increment retention” means the total education property tax increment to be retained for a housing infrastructure project across its lifetime.
(14) “Moderate-income housing” means housing for which the total annual cost of renting or ownership, as applicable, does not exceed 30 percent of the gross annual income of a household at 150 percent of the highest of the following:
(A) the county median income, as defined by the U.S. Department of Housing and Urban Development;
(B) the standard metropolitan statistical area median income if the municipality is located in such an area, as defined by the U.S. Department of Housing and Urban Development; or
(C) the statewide median income, as defined by the U.S. Department of Housing and Urban Development.
(15) “Moderate-income housing development” means a housing development of which at least 25 percent of the units are moderate-income housing units. Moderate-income units shall be subject to covenants or restrictions that preserve their affordability until all indebtedness for the housing infrastructure project of which the housing development is part has been retired.
(16) “Municipality” means a city, town, or incorporated village.
(17) “Original taxable value” means the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property located within a housing development site as of its creation date, provided that no parcel within the housing development site shall be divided or bisected.
(18) “Related costs” means expenses incurred and paid by a municipality, exclusive of the actual cost of constructing and financing improvements, that are directly related to the creation and implementation of the municipality’s housing infrastructure project, including reimbursement of sums previously advanced by the municipality for those purposes. Related costs may include direct municipal expenses such as departmental or personnel costs related to creating or administering the housing infrastructure project to the extent they are paid from the tax increment realized from municipal and not education taxes and using only that portion of the municipal increment above the percentage required for servicing debt as determined in accordance with section 1910c of this subchapter.
(19) “Sponsor” means the person undertaking to finance a housing infrastructure project. Any of a municipality, a developer, or an independent agency that meets State lending standards may serve as a sponsor for a housing infrastructure project.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1907 Purpose
The purpose of the Community and Housing Infrastructure Program is to encourage the development of new primary residences for households of low and moderate income across both rural and urban areas of all Vermont counties that would not be created but for the infrastructure improvements funded by the Program.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1908 Creation of housing infrastructure project and housing development site
(a) The legislative body of a municipality may create within its jurisdiction a housing infrastructure project, which shall consist of improvements that stimulate the development of housing, and a housing development site, which shall consist of the parcel or parcels on which a housing development is installed or constructed.
(b) To create a housing infrastructure project and housing development site, a municipality, in coordination with stakeholders, shall:
(1) develop a housing development plan, including:
(A) a description of the proposed housing infrastructure project, the proposed housing development, and the proposed housing development site;
(B) identification of a sponsor;
(C) a tax increment financing plan meeting the standards of subsection 1910(h) of this subchapter;
(D) a pro forma projection of expected costs of the proposed housing infrastructure project;
(E) a projection of the tax increment to be generated by the proposed housing development;
(F) a development schedule that includes a list, a cost estimate, and a schedule for the proposed housing infrastructure project and the proposed housing development; and
(G) a determination that the proposed housing development furthers the purpose of section 1907 of this subchapter;
(2) develop a plan describing the housing development site by its boundaries and the properties therein, entitled “Proposed Housing Development Site (municipal name), Vermont”;
(3) hold one or more public hearings, after public notice, on the proposed housing infrastructure project, including the plans developed pursuant to this subsection; and
(4) adopt by act of the legislative body of the municipality the plan developed under subdivision (2) of this subsection, which shall be recorded with the municipal clerk and lister or assessor.
(c) The creation of a housing development site shall occur at 12:01 a.m. on April 1 of the calendar year in which the Vermont Economic Progress Council approves the use of tax increment financing for the housing infrastructure project pursuant to section 1910 of this subchapter.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1909 Housing infrastructure agreement
(a) The housing infrastructure agreement for a housing infrastructure project shall:
(1) clearly identify the sponsor for the housing infrastructure project;
(2) clearly identify the developer and the housing development for the housing development site;
(3) obligate the tax increments retained pursuant to section 1910c of this subchapter for not more than the financing and related costs for the housing infrastructure project;
(4) provide that any housing unit within the housing development be offered exclusively as a primary residence until all indebtedness for the housing infrastructure project of which the housing development is part has been retired, provided that this condition shall be satisfied by biennially providing a landlord certificate or homestead declaration; and
(5) provide for performance assurances to reasonably secure the obligations of all parties under the housing infrastructure agreement.
(b) A municipality shall provide notice of the terms of the housing infrastructure agreement for the municipality’s housing infrastructure project to the legal voters of the municipality and shall provide the same information as set forth in subsection 1910a(e) of this subchapter.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910 Housing infrastructure project application; Vermont Economic Progress Council
(a) Application. A municipality, upon approval of its legislative body, may apply to the Vermont Economic Progress Council to use tax increment financing for a housing infrastructure project.
(b) But-for test. The Vermont Economic Progress Council shall review each application other than those for which the housing development is an affordable housing development to determine whether the infrastructure improvements proposed to serve the housing development site and the proposed housing development would not have occurred as proposed in the application or would have occurred in a significantly different and less desirable manner than as proposed in the application but for the proposed utilization of the incremental tax revenues.
(c) Process requirements. The Vermont Economic Progress Council shall review a municipality’s housing infrastructure project application to determine whether the municipality has:
(1) created a housing infrastructure project and housing development site pursuant to section 1908 of this subchapter;
(2) executed a housing infrastructure agreement for the housing infrastructure project that adheres to the standards of section 1909 of this subchapter with a developer and, if the municipality is not financing the housing infrastructure project itself, a sponsor; and
(3) approved or pledged to use incremental municipal tax revenues for the housing infrastructure project in the proportion provided for municipal tax revenues in section 1910c of this subchapter.
(d) Project criteria. The Vermont Economic Progress Council shall review a municipality’s housing infrastructure project application to determine whether:
(1) at least 60 percent of the floor area of the projected housing development is dedicated to housing; or
(2) the projected housing development meaningfully addresses the purpose of section 1907 of this subchapter.
(e) Affordability criterion. The Vermont Economic Progress Council shall review a municipality’s housing infrastructure project application to determine whether the projected housing development is an affordable housing development or a moderate-income housing development for purposes of the increased education property tax increment retention percentage under section 1910c of this subchapter.
(f) Tax increment financing plan. The Vermont Economic Progress Council shall approve a municipality’s tax increment financing plan prior to a sponsor’s incurrence of debt for the housing infrastructure project, including, if the sponsor is a municipality, prior to a public vote to pledge the credit of the municipality under section 1910a of this subchapter. The tax increment financing plan shall include:
(1) a statement of costs and sources of revenue;
(2) estimates of assessed values within the housing development site;
(3) the portion of those assessed values to be applied to the housing infrastructure project;
(4) the resulting tax increments in each year of the financial plan and the lifetime education property tax increment retention;
(5) the amount of bonded indebtedness or other financing to be incurred;
(6) other sources of financing and anticipated revenues; and
(7) the duration of the financial plan.
(g) Approval. The Vermont Economic Progress Council shall approve or deny an application submitted pursuant to this section not later than 90 days following the site visit conducted as part of the application’s review. The Vermont Economic Progress Council shall only approve tax increment financing for applications:
(1) that meet the process requirements, either of the project criteria of this section, and, for an application for which the housing development is not an affordable housing development, the but-for test;
(2) for which the Council has approved the tax increment financing plan; and
(3) that are submitted on or before December 31, 2035.
(h) Limit. The Vermont Economic Progress Council shall not annually approve more than $200,000,000.00 in aggregate lifetime education property tax increment retention.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910a Indebtedness
(a) A municipality approved for tax increment financing under section 1910 of this subchapter may incur indebtedness against revenues of the housing development site at any time during a period of up to five years following the creation of the housing development site. The Vermont Economic Progress Council may extend this debt incursion period by up to three years.
(b) Notwithstanding any provision of any municipal charter, each instance of borrowing by a municipality to finance or otherwise pay for a housing infrastructure project shall occur only after the legal voters of the municipality, by a majority vote of all voters present and voting on the question at a special or annual municipal meeting duly warned for the purpose, authorize the legislative body to pledge the credit of the municipality, borrow, or otherwise secure the debt for the specific purposes so warned.
(c) Any indebtedness incurred under this section may be retired over any period authorized by the legislative body of the municipality.
(d) The housing development site shall continue until the date and hour the indebtedness is retired or, if no debt is incurred, the debt incursion period ends.
(e) A municipal legislative body shall provide information to the public prior to the public vote required under subsection (b) of this section. This information shall include the amount and types of debt and related costs to be incurred, including principal, interest, and fees; terms of the debt; the housing infrastructure project to be financed; the housing development projected to occur because of the housing infrastructure project; and notice to the voters that if the tax increment received by the municipality from any property tax source is insufficient to pay the principal and interest on the debt in any year, the municipality shall remain liable for the full payment of the principal and interest for the term of the indebtedness. If interfund loans within the municipality are used, the information must also include documentation of the terms and conditions of the loan.
(f) If interfund loans within the municipality are used as the method of financing, no interest shall be charged.
(g) The use of a bond anticipation note shall not be considered a first incurrence of debt pursuant to subsection (a) of this section.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910b Original taxable value; tax increment
(a) As of the date the housing development site is created, the lister or assessor for the municipality shall certify the original taxable value and shall certify to the legislative body in each year thereafter during the life of the housing development site the amount by which the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property within the housing development site has increased or decreased relative to the original taxable value.
(b) Annually throughout the life of the housing development site, the lister or assessor shall include not more than the original taxable value of the real property in the assessed valuation upon which the treasurer computes the rates of all taxes levied by the municipality and every other taxing district in which the housing development site is situated, but the treasurer shall extend all rates so determined against the entire assessed valuation of real property for that year.
(c) Annually throughout the life of the housing development site, a municipality shall remit not less than the aggregate education property tax due on the original taxable value to the Education Fund.
(d) Annually throughout the life of the housing development site, the municipality shall hold apart, rather than remit to the taxing districts, that proportion of all taxes paid that year on the real property within the housing development site that the excess valuation bears to the total assessed valuation. The amount held apart each year is the “tax increment” for that year. The tax increment shall only be used for financing and related costs.
(e) Not more than the percentages established pursuant to section 1910c of this subchapter of the municipal and State education tax increments received with respect to the housing development site and committed for the payment for financing for improvements and related costs shall be segregated by the municipality in a special tax increment financing account and in its official books and records until all capital indebtedness incurred for the housing infrastructure project has been fully paid. The final payment shall be reported to the treasurer, who shall thereafter include the entire assessed valuation of the housing development site in the assessed valuations upon which the municipal and other tax rates are computed and extended, and thereafter no taxes from the housing development site shall be deposited in the special tax increment financing account.
(f) Notwithstanding any charter provision or other provision, all property taxes assessed within a housing development site shall be subject to the provisions of this section. Special assessments levied under chapter 76A or 87 of this title or under a municipal charter shall not be considered property taxes for the purpose of this section if the proceeds are used exclusively for operating expenses related to properties within the housing development site and not for improvements within the housing development site.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910c Use of tax increment; retention period
(a) Uses of tax increments. A municipality may apply tax increments retained pursuant to this subchapter to debt incurred within the period permitted under section 1910a of this subchapter, to related costs, and to the direct payment of the cost of a housing infrastructure project. A municipality may provide tax increment to a sponsor only upon receipt of an invoice for payment of the financing, and the sponsor shall confirm to the municipality once the tax increment has been applied to the financing. Any direct payment shall be subject to the same public vote provisions of section 1910a of this subchapter as apply to debt.
(b) Education property tax increment.
(1) For a housing infrastructure project that does not satisfy the affordability criterion of section 1910 of this subchapter, up to 75 percent of the education property tax increment may be retained for up to 20 years, beginning the first year in which debt is incurred for the housing infrastructure project.
(2) For a housing infrastructure project that satisfies the affordability criterion of section 1910 of this subchapter, up to 85 percent of the education property tax increment may be retained for up to 20 years, beginning the first year in which debt is incurred for the housing infrastructure project.
(3) Upon incurring the first debt, a municipality shall notify the Department of Taxes and the Vermont Economic Progress Council of the beginning of the retention period of the education property tax increment.
(c) Municipal property tax increment. Not less than 85 percent of the municipal property tax increment may be retained, beginning the first year in which debt is incurred for the housing infrastructure project.
(d) Excess tax increment.
(1) Of the municipal and education property tax increments received in any tax year that exceed the amounts committed for the payment of the financing and related costs for a housing infrastructure project, equal portions of each increment may be retained for the following purposes:
(A) to prepay principal and interest on the financing;
(B) to place in a special tax increment financing account required pursuant to subsection 1910b(e) of this subchapter and use for future financing payments; or
(C) to use for defeasance of the financing.
(2) Any remaining portion of the excess education property tax increment shall be distributed to the Education Fund. Any remaining portion of the excess municipal property tax increment shall be distributed to the city, town, or village budget in the proportion that each budget bears to the combined total of the budgets unless otherwise negotiated by the city, town, or village.
(e) Adjustment of percentage. During the 10th year following the creation of a housing development site, the municipality shall submit an updated tax increment financing plan to the Vermont Economic Progress Council that shall include adjustments and updates of appropriate data and information sufficient for the Vermont Economic Progress Council to determine, based on tax increment financing debt actually incurred and the history of increment generated during the first 10 years, whether the percentages approved under this section should be continued or adjusted to a lower percentage to be retained for the remaining duration of the retention period and still provide sufficient municipal and education increment to service the remaining debt.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910d Information reporting
(a) A municipality with an active housing infrastructure project shall:
(1) develop a system, segregated for the housing infrastructure project, to identify, collect, and maintain all data and information necessary to fulfill the reporting requirements of this section;
(2) provide timely notification to the Department of Taxes and the Vermont Economic Progress Council of any housing infrastructure project debt, public vote, or vote by the municipal legislative body immediately following the debt incurrence or public vote on a form prescribed by the Council, including copies of public notices, agendas, minutes, vote tally, and a copy of the information provided to the public pursuant to subsection 1910a(e) of this subchapter; and
(3) annually on or before February 15, submit on a form prescribed by the Vermont Economic Progress Council an annual report to the Council and the Department of Taxes, including the information required by subdivision (2) of this subsection if not previously submitted, the information required for annual audit under section 1910e of this subchapter, and any information required by the Council or the Department of Taxes for the report required pursuant to subsection (b) of this section.
(b) Annually on or before April 1, the Vermont Economic Progress Council and the Department of Taxes shall submit a report to the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development, on General and Housing, and on Ways and Means that provides the aggregate lifetime education property tax increment retention approved that year, describes common reasons applicants to the Community and Housing Infrastructure Program fail to secure approval for tax increment financing, and includes for each housing infrastructure project approved pursuant to this subchapter the following:
(1) the date of approval;
(2) a description of the housing infrastructure project;
(3) the original taxable value of the housing development site;
(4) the scope and value of projected and actual improvements and developments in the housing development site, including the number of housing units created;
(5) the sale prices for initial offerings of any housing units;
(6) the number and types of housing units for which a permit is being pursued under 10 V.S.A. chapter 151 (State land use and development plans) and, for each applicable housing development, the current stage of the permitting process;
(7) projected and actual incremental revenue amounts;
(8) the allocation of incremental revenue, including the amount allocated to related costs;
(9) projected and actual financing; and
(10) an evaluation of the amount of public funds flowing to private ownership or usage.
(c) On or before January 15, 2035, the Vermont Economic Progress Council shall submit a report to the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development, on General and Housing, and on Ways and Means evaluating the success of the Community and Housing Infrastructure Program in achieving its purpose, as stated in section 1907 of this chapter, including by identifying the amount and kinds of housing produced through the Program and by determining whether housing development pursued through the Program meets the project criteria of section 1910 of this chapter.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910e Auditing
Annually on or before April 1 until the year following the end of the period for retention of education property tax increment, a municipality with a housing infrastructure project approved under this subchapter shall ensure that the special tax increment financing account required by section 1910b of this subchapter is subject to the annual audit prescribed in section 1681 or 1690 of this title and submit a copy to the Vermont Economic Progress Council. If an account is subject only to the audit under section 1681 of this title, the Council shall ensure a process is in place to subject the account to an independent audit. Procedures for the audit must include verification of the original taxable value and annual and total municipal and education property tax increments generated, expenditures for financing and related costs, and current balance.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
§ 1910f Rulemaking; guidance
(a) Authority to adopt rules and guidance.
(1) The Vermont Economic Progress Council may adopt rules that are reasonably necessary to implement this subchapter.
(2) The Vermont Economic Progress Council shall issue guidance to implement this subchapter on or before November 15, 2025. Upon issuance, the Vermont Economic Progress Council shall publicly post and submit to the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development, on General and Housing, and on Ways and Means any guidance documents.
(b) Authority to issue decisions.
(1) The Secretary of Commerce and Community Development, after reasonable notice to a municipality and an opportunity for a hearing, may issue decisions to a municipality on questions and inquiries concerning the administration of housing infrastructure projects, statutes, rules, noncompliance with this subchapter, and any instances of noncompliance identified in audit reports conducted pursuant to section 1910e of this subchapter.
(2) The Vermont Economic Progress Council shall prepare recommendations for the Secretary of Commerce and Community Development prior to any decision issued pursuant to this subsection. The Council may prepare recommendations in consultation with the Commissioner of Taxes, the Attorney General, and the State Treasurer. In preparing recommendations, the Council shall provide a municipality with a reasonable opportunity to submit written information in support of its position.
(3) The Secretary of Commerce and Community Development shall review the recommendations of the Council and issue a final written decision on each matter within 60 days following receipt of the recommendations. The Secretary may permit an appeal to be taken by any party to a Superior Court for determination of questions of law in the same manner as the Supreme Court may by rule provide for appeals before final judgment from a Superior Court before issuing a final decision.
(c) Remedy for noncompliance. If the Secretary issues a decision under subsection (b) of this section that includes a finding of noncompliance and that noncompliance has resulted in the improper reduction in the amount due the Education Fund, the Secretary, unless and until the Secretary is satisfied that there is no longer any such failure to comply, shall request that the State Treasurer bill the municipality for the total identified underpayment. The amount of the underpayment shall be due from the municipality upon receipt of the bill. If the municipality does not pay the underpayment amount within 60 days, the amount may be withheld from any funds otherwise payable by the State to the municipality or a school district in the municipality or of which the municipality is a member.
(d) Referral; Attorney General. In lieu of or in addition to any action authorized in subsection (c) of this section, the Secretary of Commerce and Community Development or the State Treasurer may refer the matter to the Office of the Attorney General with a recommendation that an appropriate civil action be initiated.
(e) Appeal; hearing officer. A hearing that is held pursuant to this section shall be subject to the provisions of 3 V.S.A. chapter 25 relating to contested cases. The hearing shall be conducted by the Secretary or by a hearing officer appointed by the Secretary. If a hearing is conducted by a hearing officer, the hearing officer shall have all authority to conduct the hearing that is provided for in the applicable contested case provisions of 3 V.S.A. chapter 25, including issuing findings of fact, hearing evidence, and compelling, by subpoena, the attendance and testimony of witnesses.
(Added 2025, No. 69, § 20, eff. July 1, 2025.)
Chapter 54 Communications Plant and Service
§ 1911 Definitions
The following terms when used in this chapter shall have the following meaning:
(1) “Acquire” shall mean to purchase, to acquire by eminent domain, to hire, to lease, to construct, to reconstruct, or to replace.
(2) “Communications plant” shall mean any and all parts of any communications system owned by the municipality, whether using wires, cables, fiber optics, wireless, other technologies, or a combination thereof, and used for the purpose of transporting or storing information, in whatever forms, directions, and media, together with any improvements thereto hereafter constructed or acquired, and all other facilities, equipment, and appurtenances necessary or appropriate to such system. However, the term “communications plant” and any regulatory implications or any restrictions under this chapter regarding either “communications plant” or “communications service” shall not apply to facilities or portions of any communications facilities intended for use by, and solely used by, the municipality and the municipality’s own officers and employees in the operation of municipal departments or systems of which such communications are merely an ancillary component.
(3) “Communications service” shall include ownership, operation, and utilization of a communications plant within or without the corporate limits of the municipality to transport or store information in any form and medium.
(4) “Improve” shall mean to acquire or construct any improvement, whether consisting of real or personal property.
(5) “Improvement” shall mean any extension, betterment, addition, alteration, reconstruction, and extraordinary repair, equipping, or reequipping of the communications plant of the municipality.
(Added 2007, No. 79, § 4, eff. June 9, 2007.)
§ 1912 Communications plant; authority to acquire, construct, operate, improve, extend, and better
(a) A municipality is authorized and empowered to own, maintain, operate, improve, and extend, or otherwise acquire, and to sell, lease, or otherwise dispose of, in accordance with and in any situation or manner not prohibited by law, its communications plant for the furnishing of communications services within or without the corporate limits of the municipality, for public, domestic, commercial, and industrial use, and for the provision of communications service. For the aforesaid purposes, the municipality may hire, lease, purchase, own, hold, and acquire by contract, agreement, or eminent domain proceedings any buildings, land, rights-of-way, and any other real property necessary or convenient to the operation of the communications plant, and may use any public highway over which it may be necessary or desirable to pass with the poles and wire of the same, provided that the use of such public highway for the purpose of public travel is not thereby unnecessarily impaired. These powers may be exercised through a taking by eminent domain in the manner prescribed by law. All of the foregoing powers are in addition to and not in substitution for or in limitation of any other powers conferred by law.
(b) Before a municipality may sell any service using its communications plant subject to Public Utility Commission jurisdiction and for which a certificate of public good is required under 30 V.S.A. chapter 5 or 13, it shall obtain a certificate of public good for such service. Each such certificate of public good shall be nonexclusive and shall not contain terms or conditions more favorable than those imposed on existing certificate holders authorized to serve the municipality.
(Added 2007, No. 79, § 4, eff. June 9, 2007.)
§ 1913 Communications plant; operation and regulation
(a) A municipality shall operate its communications plant in accordance with the applicable State and federal law and regulation, and chapter 53 of this title, relating to municipal indebtedness, with regard to the financing, improvements, expansion, and disposal of the municipal communications plant and its operations. However, the powers conferred by such provisions of law shall be supplemental to, construed in harmony with, and not in restriction of, the powers conferred in this chapter.
(b) A municipality’s operation of any communications plant shall be supported solely by the revenues derived from the operation of such communications plant, except that portion which is used for its own municipal purposes.
(c) A municipality may finance any capital improvement related to its operation of such communications plant for the benefit of the people of the municipality in accordance with the provisions of chapter 53 of this title, provided that revenue-backed bonds shall be paid from net revenues derived from the operation of the communications plant.
(d) Any restriction regarding the maximum outstanding debt that may be issued in the form of general obligation bonds shall not restrict the issuance of any bonds issued by a municipality and payable out of the net revenues from the operation of a public utility project under chapter 53, subchapter 2 of this title.
(e) To the extent that a municipality constructs communication infrastructure with the intent of providing communications services, whether wholesale or retail, the municipality shall ensure that any and all losses from these businesses, or in the event these businesses are abandoned or curtailed, any and all costs associated with the investment in communications infrastructure, are not borne by the municipality’s taxpayers.
(f) Notwithstanding any other provision of law to the contrary, a municipality may enter into a public-private partnership for the purpose of exercising its authority under this subchapter regarding the provision of communications services. A municipality may contract with a private entity to operate and manage a communications plant owned by the municipality or may contract with a private entity to co-own, operate, or manage a communications plant. A communications plant that is the subject of a public-private partnership authorized by this subsection may be financed in whole or in part pursuant to this chapter and chapter 53, subchapter 2 of this title, provided the municipality first issues a request for proposals seeking an internet service provider to serve or to assist with serving unserved and underserved locations targeted by the issuing municipality. The terms of such a partnership shall specify that the owner or owners of the communications plant, as applicable, shall be responsible for debt service.
(Added 2007, No. 79, § 4, eff. June 9, 2007; amended 2019, No. 79, § 13, eff. June 20, 2019.)
§ 1914 Validation of bonds voted for communications construction
No action shall be brought directly or indirectly attacking, questioning, or in any manner contesting the legality or validity of bonds, issued or unissued, voted by any municipality, after six months from the date upon which voters in such municipal entity met pursuant to warning and voting affirmatively to issue bonds to defray costs of communications improvements or upon vote of a question of rescission thereof, whichever occurs later. This section shall be liberally construed to effect the legislative purpose to validate and make certain the validity of bonds issued or authorized by municipalities for communications system purposes, and to bar every right to question in any manner the validity of bonds voted for such purposes, and to bar every remedy therefore, notwithstanding any defects or irregularities, jurisdictional, or otherwise, after the expiration of the six-month period.
(Added 2007, No. 79, § 4, eff. June 9, 2007.)
Chapter 55 Police
§ 1931 Police officers
(a) The legislative body, and in its stead, the town manager, when appointed pursuant to chapter 37 of this title, of a municipality as defined in section 2001 of this title may establish a police department and appoint police officers and a chief of police who shall be a police officer. Such legislative body or town manager may temporarily appoint qualified persons as additional police officers when necessary, or appoint qualified persons as temporary police officers in the event no police department is established, shall specify the term and duties of such officers, and may fix their compensation, which may be paid by the municipality. They shall be sworn and shall hold office during good behavior, unless sooner removed for cause, or in the case of temporary police officers, for the term specified. Such appointment, oath, and removal shall be in writing and recorded in the office of the clerk of the municipality.
(b) The direction and control of the entire police force, except as otherwise provided, shall be vested in the chief of police. If the chief of police is absent or disabled, or if the office of chief of police is vacant, the appointing authority may appoint another officer to discharge the duties of the chief of police.
(c) The legislative body or town manager shall report the creation of a new police department or the elimination of an existing police department to the Vermont Criminal Justice Council within five working days of the creation or elimination. The report shall include the effective date of creation or elimination, the mailing address for the police department, and the name of the appointed police chief.
(Amended 1969, No. 282 (Adj. Sess.), § 3; 1971, No. 194 (Adj. Sess.), § 1; 2009, No. 14, § 2.)
§ 1932 Negligence of officer; suspension; hearing
(a) Whenever it appears to the appointing authority by its own knowledge or when informed by a written petition signed by one or more responsible persons that any regular officer has become negligent or derelict in the officer’s official duty, or is guilty of conduct unbecoming an officer, the appointing authority shall set a date for a hearing before the legislative body upon the complaint, and shall give at least seven and not more than 15 days, written notice to the accused officer stating particularly the complainant, the charges against the officer, and the time and place of hearing. The legislative body may suspend such officer from duty pending a hearing.
(b) The officer is entitled to be represented by counsel, to answer the complaint, and to be heard on the charges. He or she may waive in writing his or her right to a hearing.
(c) The officer may file with the Criminal Division of the Superior Court having territorial jurisdiction of such municipality and with the legislative body, at least 24 hours before the time set for said hearing, a notice of election to have the cause heard before said court. If such notice is duly filed, the Criminal Division of the Superior Court shall set the matter for hearing within ten days from the filing of said notice and shall give at least five days’ written notice to the legislative body and the officer of the time and place of hearing. The court shall determine the facts and certify its findings, which shall be final, to the legislative body.
(d) If the legislative body or the Criminal Division of the Superior Court, as the case may be, finds after considering all the evidence offered in such hearing, that the officer is guilty of the charges as offered, the legislative body shall have the power by majority vote to remove the officer or to suspend him or her without pay for a period of time not to exceed 60 days.
(e) Any officer found not guilty of the charges offered against him or her by either the Criminal Division of the Superior Court or the legislative body shall have restored to the officer pay lost through suspension.
(Amended 1963, No. 158; 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.)
§ 1933 Policy
The provisions of sections 1931-1934 of this title affecting the tenure of such regular police officers and their removal from office shall apply to the chief of police. Such sections shall not apply to any police officer until he or she shall have served continuously for one year. Such sections shall not prevent a legislative body, or the town manager, from reducing the number of regular officers for reasons of economic necessity.
§ 1934 Construction
Notwithstanding any contrary provisions in any municipal charter, the provisions of sections 1931-1933 of this title shall control, unless a municipality has charter provisions providing for tenure of police officers during good behavior with removal only after hearing and for cause.
§ 1935 Powers
Police officers who are employed by a police department established under this chapter or pursuant to charter shall have the same powers as sheriffs in criminal matters and the enforcement of the law and the same powers, immunities, and matters of defense in serving criminal and civil process. The powers granted to police officers under this section may be exercised statewide.
(Amended 1971, No. 194 (Adj. Sess.), § 2, eff. July 1, 1972; 1973, No. 114; 1987, No. 122 (Adj. Sess.), § 3, eff. Jan. 26, 1988; 2013, No. 49, § 7.)
§ 1936 Special police officers; qualifications
(a) If the legislative body of a municipality does not establish a police department or appoint a chief of police, temporary police officers appointed pursuant to subsection 1931(a) of this title shall serve under the direction of the legislative body.
(b) Persons appointed as law enforcement officers under the provisions of this chapter, before exercising any law enforcement authority, shall complete a course of training under 20 V.S.A. chapter 151.
(Amended 1971, No. 194 (Adj. Sess.), § 3, eff. July 1, 1972; 1979, No. 57, § 10; 2003, No. 122 (Adj. Sess.), § 85c.)
§ 1936a Constables; powers and qualifications
(a) A town may vote at a special or annual town meeting to prohibit constables from exercising any law enforcement authority.
(b) Notwithstanding the provisions of subsection (a) of this section, constables may perform the following duties:
(1) the service of civil or criminal process, under 12 V.S.A. § 691;
(2) destruction of animals, in accordance with the provisions of 20 V.S.A. chapter 193;
(3) the killing of injured deer, under 10 V.S.A. § 4749;
(4) provision of assistance to the health officer in the discharge of the health officer’s duties, under 18 V.S.A. § 617;
(5) service as a Criminal Division of the Superior Court officer, under section 296 of this title;
(6) removal of disorderly people from town meeting, under 17 V.S.A. § 2659; and
(7) collection of taxes, when no tax collector is elected, as provided under section 1529 of this title.
(c) A constable who is not prohibited from exercising law enforcement authority under subsection (a) of this section may transport a person arrested by the constable for a violation of 23 V.S.A. § 1201 (DUI) to a police department outside the town for the purpose of DUI processing and may complete the processing if he or she has been certified by the Vermont Criminal Justice Council to do so.
(d) A municipal legislative body may vote to allow a constable elected or appointed in another municipality to exercise law enforcement authority in its municipality, provided that:
(1) the constable is not prohibited from exercising law enforcement authority under subsection (a) of this section;
(2) the constable is certified to exercise that level of authority under 20 V.S.A. § 2358; and
(3) the exercise of law enforcement authority is conducted in accordance with policies and procedures adopted by the legislative body establishing the circumstances under which the authority may be exercised.
(Added 1991, No. 177 (Adj. Sess.), § 3; amended 1997, No. 57, § 8, eff. June 26, 1997; 1999, No. 160 (Adj. Sess.), § 27; 2007, No. 195 (Adj. Sess.), § 9, eff. July 1, 2010; 2009, No. 108 (Adj. Sess.), § 11; 2009, No. 154 (Adj. Sess.), § 238; 2013, No. 141 (Adj. Sess.), § 19, eff. July 1, 2015.)
§ 1937 Reciprocal assistance agreements
(a) A reciprocal assistance agreement may be entered into between:
(1) the chief law enforcement officer of a municipality in a county of this State adjacent to a neighboring state, or the sheriff of such a county; and
(2) the chief law enforcement officer of a municipality in an adjacent county of the neighboring state, or the sheriff of such a county.
(b) The authority of a duly authorized and certified municipal law enforcement officer, sheriff, or deputy sheriff in a neighboring state shall extend to a municipality or county in this State if:
(1) reciprocal statutory authority has been granted by the neighboring state to the law enforcement officers, sheriffs, or deputy sheriffs of this State;
(2) a reciprocal assistance agreement under subsection (a) of this section has been executed which sets forth the terms and conditions under which assistance may be requested or rendered;
(3) the agreement is in writing; and
(4) in the case of an agreement by a municipality in this State, the agreement of the chief law enforcement officer of the municipality is approved by its legislative body.
(c) The reciprocal assistance agreement shall constitute authorization for every request for assistance, and for any assistance rendered, in accordance with the terms and conditions of the written agreement, regardless of whether the officer, sheriff, or deputy sheriff is named in the agreement.
(d) In either emergency or nonemergency circumstances, the ranking on-duty law enforcement officer, sheriff, or deputy sheriff may make an oral request for assistance to the ranking on-duty law enforcement officer, sheriff, or deputy sheriff in the responding jurisdiction, subject to the terms and conditions of the reciprocal assistance agreement. The agreement shall state the authority of the responding police officer in such circumstances.
(e) A reciprocal assistance agreement shall remain in full force and effect until terminated by mutual consent of the parties to the agreement, or until ten days after one of the parties has received notification from the other party of intention to terminate the agreement.
(Added 1989, No. 92.)
§ 1938 Intermunicipal police services; purpose; agreements
(a) Cities, towns, incorporated villages, the University of Vermont, sheriffs, and State agencies may enter into agreements to provide for intermunicipal police services. Intermunicipal police services include general police services, emergency planning and assistance, task forces, and other specialized investigative units to provide police services within the boundaries of the participating municipalities and counties.
(b) The legislative body of each municipality may authorize the chief of police or other designee to provide police resources for intermunicipal police services. The participating municipalities, sheriffs, and State agencies shall enter into a written agreement, which shall provide for the scope of the mutual services, the powers, duties, and responsibilities of each participant, and the governing authority for officers called for duty under the terms of the agreement. The agreement shall also contain provisions relating to the use of equipment, supplies, and materials during the period of mutual service. Any employee covered by such an agreement shall remain an employee of the donor agency.
(c) Agreements entered into under this section shall not be subject to the requirement of chapter 121 of this title.
(d) Cities, towns, incorporated villages, the University of Vermont, sheriffs, and State agencies may enter into agreements under this section with municipalities in the same or adjoining counties and with municipalities in adjoining states.
(Added 1993, No. 42, § 1; amended 2003, No. 121 (Adj. Sess.), §§ 82, 83, eff. June 8, 2004; 2003, No. 122 (Adj. Sess.), § 85d.)
§ 1939 Recodified. 2019, No. 166 (Adj. Sess.), § 23a.
§ 1940 Special investigative units; boards; grants
(a) Pursuant to the authority established under section 1938 of this title, and in collaboration with law enforcement agencies, investigative agencies, victims’ advocates, and social service providers, the Department of State’s Attorneys and Sheriffs shall coordinate efforts to provide access in each region of the State to special investigative units that:
(1) shall investigate:
(A) an incident in which a child suffers, by other than accidental means, serious bodily injury as defined in 13 V.S.A. § 1021; and
(B) potential violations of:
(i) 13 V.S.A. § 2602 (lewd or lascivious conduct with child);
(ii) 13 V.S.A. chapter 60 (human trafficking);
(iii) 13 V.S.A. chapter 64 (sexual exploitation of children);
(iv) 13 V.S.A. chapter 72 (sexual assault); and
(v) 13 V.S.A. § 1379 (sexual abuse of a vulnerable adult); and
(2) may investigate:
(A) an incident in which a child suffers:
(i) bodily injury, by other than accidental means, as defined in 13 V.S.A. § 1021; or
(ii) death;
(B) potential violations of:
(i) 13 V.S.A. § 2601 (lewd and lascivious conduct);
(ii) 13 V.S.A. § 2605 (voyeurism); and
(iii) 13 V.S.A. § 1304 (cruelty to a child); and
(3) may assist with the investigation of other incidents, including incidents involving domestic violence and crimes against vulnerable adults.
(b) Any interview of a child pursuant to this section shall be electronically recorded. As used in this subsection, “electronically recorded” means an audio and visual recording that is an authentic, accurate, unaltered record of the interview.
(c) A special investigative unit organized and operating under this section may accept, receive, and disburse in furtherance of its duties and functions any funds, grants, and services made available by the State of Vermont and its agencies, the federal government and its agencies, any municipality or other unit of local government, or private or civic sources. Any employee covered by an agreement establishing a special investigative unit shall remain an employee of the donor agency.
(d) A Special Investigative Unit Grants Board is created, which shall comprise the Attorney General, the Secretary of Administration, the Executive Director of State’s Attorneys and Sheriffs, the Commissioner of Public Safety, the Commissioner for Children and Families, a representative of the Vermont Sheriffs’ Association, a representative of the Vermont Association of Chiefs of Police, the Executive Director of the Center for Crime Victim Services, and the Executive Director of the Vermont League of Cities and Towns. Special investigative units organized and operating under this section may apply to the Board for a grant or grants covering the costs of salaries and employee benefits to be expended during a given year for the performance of unit duties as well as unit operating costs for rent, utilities, equipment, training, and supplies. Grants under this section shall be approved by a majority of the entire Board and shall not exceed 50 percent of the yearly salary and employee benefit costs of the unit. Preference shall be given to grant applications which include the participation of the Department of Public Safety, the Department for Children and Families, sheriffs’ departments, community victims’ advocacy organizations, and municipalities within the region. Preference shall also be given to grant applications which promote policies and practices that are consistent across the State, including policies and practices concerning the referral of complaints, the investigation of cases, and the supervision and management of special investigative units. However, a sheriff’s department in a county with a population of fewer than 8,000 residents shall upon application receive a grant of up to $20,000.00 for 50 percent of the yearly salary and employee benefits costs of a part-time special investigative unit investigator, which shall be paid to the department as time is billed on a per hour rate as agreed by contract up to the maximum amount of the grant.
(e) The Board may adopt rules relating to grant eligibility criteria, processes for applications, awards, and reports related to grants authorized pursuant to this section. The Attorney General shall be the adopting authority.
(Added 2005, No. 83, § 12; amended 2005, No. 192 (Adj. Sess.), § 5, eff. May 26, 2006; 2009, No. 1, § 52a, eff. March 4, 2009; 2009, No. 156 (Adj. Sess.), § E.206; 2009, No. 157 (Adj. Sess.), § 15; 2015, No. 60, § 15; 2023, No. 89 (Adj. Sess.), § 2a, eff. July 1, 2024.)
§§ 1941-1942 Repealed
[Repealed]
1971, No. 194 (Adj. Sess.), § 4, eff. July 1, 1972.
§ 1943 Animal Cruelty Investigation Advisory Board
(a) Board. An Animal Cruelty Investigation Advisory Board is created within the Department of Public Safety to advise the Governor, the General Assembly, and the Commissioner of Public Safety on issues involving the cooperation and coordination of all agencies that exercise animal welfare responsibilities.
(b) Membership.
(1) The Advisory Board shall be composed of the following members:
(A) the Commissioner of Public Safety or designee;
(B) the Executive Director of State’s Attorneys and Sheriffs or designee;
(C) the Secretary of Agriculture, Food and Markets or designee;
(D) the Commissioner of Fish and Wildlife or designee;
(E) a member appointed by the Governor to represent the interests of the Vermont League of Cities and Towns;
(F) two members appointed by the Governor to represent the interests of organizations dedicated to promoting the welfare of animals;
(G) a member appointed by the Governor to represent the interests of the Vermont Police Association;
(H) a member appointed by the Governor to represent the interests of dog breeders and associated groups;
(I) a member appointed by the Governor to represent the interests of veterinarians; and
(J) a member to represent the interests of the Criminal Justice Training Council.
(2) The Board shall elect a chair and a vice chair, which shall rotate among the various member representatives. Each member shall serve a term of two years. The Board shall meet at the call of the Chair. A quorum shall consist of six members, and decisions of the Board shall require the approval of a majority of those members present and voting.
(c) Duties. The Board shall exercise oversight over Vermont’s system for investigating and responding to animal cruelty complaints and develop a systematic, collaborative approach to providing the best services to Vermont’s animals statewide, given monies available. In carrying out its responsibilities under this subsection, the Board shall:
(1) identify and monitor the extent and scope of any deficiencies in Vermont’s system of investigating and responding to animal cruelty complaints;
(2) work with the Department of Public Safety to study the feasibility of designating one law enforcement agency to receive, dispatch, and document the outcome of animal cruelty complaints and, with the assistance of the Vermont Sheriffs’ Association, develop a uniform response protocol for assigning complaints to the appropriate local law enforcement agencies;
(3) ensure that investigations of serious animal cruelty complaints are systematic and documented, and develop written standard operating procedures and checklists to support the objective investigation of cruelty complaints that include objective measures of both environmental and clinical evidence of cruelty;
(4) ensure that requests for voluntary compliance are made in writing, with clear requests and timelines, and include a timeline for the investigator to perform a follow-up visit to confirm actions taken;
(5) develop a guide for animal cruelty prosecution, including a review of current sentencing recommendations for State’s Attorneys;
(6) research the feasibility of developing and implementing an animal cruelty prevention and education program for offenders to be used as a part of offenders’ sentencing;
(7) explore potential private and public sources of funding for animal cruelty investigations, including animal care expenses;
(8) develop trainings, protocols, procedures, and guidance documents for agencies engaging in animal welfare responsibilities;
(9) develop and identify funding sources for an animal cruelty investigation certification program for humane officers in accordance with 13 V.S.A. § 356, and develop a standard by which a person who has been actively engaged in this State as a humane officer conducting animal cruelty investigations for at least five years preceding July 1, 2017 may become certified without completion of the certification program requirements;
(10) identify funding sources for the training requirement under 20 V.S.A. § 2365b;
(11) develop recommendations for providing liability protection and reducing uncompensated costs to animal shelters and animal welfare groups that assist law enforcement authorities in animal cruelty investigations;
(12) explore changing the annual deadline for dog licensure under 20 V.S.A. § 3582 better to align with the time of year dogs require annual veterinary care; and
(13) determine what should appropriately constitute an enforcement action triggering the obligation of the Agency of Agriculture, Food and Markets to assist law enforcement pursuant to 13 V.S.A. § 354(a).
(d) Reimbursement. Members of the Board who are not employees of the State of Vermont and who are not otherwise compensated or reimbursed for their attendance shall be entitled to per diem compensation and reimbursement of expenses pursuant to 32 V.S.A. § 1010, paid from the budget of the Agency of Administration for attendance of meetings of the Board.
(e) Meetings and report. The Board shall meet no fewer than six times a year to undertake its duties as outlined in subsection (c) of this section. The Board shall report on its findings and specific recommendations in brief summary to the House and Senate Committees on Judiciary, House Committee on Agriculture and Forest Products, and Senate Committee on Agriculture annually on or before January 15.
(Added 2015, No. 155 (Adj. Sess.), § 4.)
Chapter 57 Fire Departments
§ 1951 Creation of department
A town, city, or incorporated village shall have power to create, maintain, and operate a fire department as a department of the municipality, and for this purpose to purchase, acquire, hold, lease, or sell real property, equipment, and apparatus, and to appoint officers, firemen, and employees of the department.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1952 Eminent domain
A town, city, or incorporated village may acquire real property for purposes of a fire house or fire station by exercise of the right of eminent domain in the manner and according to the procedure provided in sections 2805-2812 of this title for acquisition of land for a municipal building.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1953 Officers
The officers of a fire department shall consist of a chief engineer, an assistant chief engineer, and fire captains in such number as the legislative body of the municipality shall determine. The duties and powers of the chief engineer shall be the same as those of the chief engineer of a fire district under 20 V.S.A. §§ 2671-2675. The legislative body may appoint and remove such officers, and fix their salaries or other compensation, subject to such rules and regulations as the legislative body may adopt.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1954 Firemen
Firemen shall be appointed by the chief engineer, subject to such rules or regulations as the legislative body may adopt, and may be salaried employees or volunteers. A fireman may be dismissed or suspended by the chief engineer on written notice, but shall be entitled to a hearing on such dismissal or suspension before the legislative body of the municipality if a written request for a hearing is submitted to the legislative body by the fireman dismissed or suspended within five days after receipt of notice thereof. The legislative body may revoke such dismissal or suspension, and may order reinstatement of a fireman suspended or dismissed.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1955 Expenditures
All expenditures for the creation, operation, and maintenance of a fire department under this chapter shall be paid from the general fund of the municipality unless other means are provided by the legislative body or the qualified voters.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1956 Personnel rules
The officers, firemen, and employees of a fire department organized under this chapter may be governed by rules adopted by the legislative body of the municipality under subchapter 11 of chapter 33 of this title.
(Added 1969, No. 170 (Adj. Sess.), § 7, eff. March 2, 1970.)
§ 1957 Contracts with federal government
A town, city, or incorporated village, by act of its legislative body, may contract with the U.S. government or any of its departments or agencies for the purpose of providing fire protection to federal property located within its limits. These contracts for fire protection may include all firefighting costs which are ordinarily associated with firefighting functions of a fire department.
(Added 1977, No. 218 (Adj. Sess.), § 8.)
Chapter 58 Community Justice Centers
§ 1961 Legislative findings
A system of community justice centers that operates under the authority of a single statute will:
(1) help each community justice center collaborate more closely with law enforcement and State’s Attorneys, State agencies, social service providers, victim advocacy organizations, and other community resources;
(2) enhance the services each community justice center provides; and
(3) help each community justice center further its policy interest of achieving restorative justice.
(Added 2007, No. 115 (Adj. Sess.), § 1.)
§ 1962 Definitions
As used in this chapter:
(1) “Legislative body” means the mayor and board of aldermen of a city, a city council, a town selectboard, the president and trustees of an incorporated village, or the legislative bodies of a group of municipalities.
(2) “Municipality” means a city, town, incorporated village, or group of municipalities.
(Added 2007, No. 115 (Adj. Sess.), § 1.)
§ 1963 Authority of municipalities
The legislative body of any municipality may create within its jurisdiction a community justice center to resolve civil disputes and address the wrongdoings of individuals who have committed municipal, juvenile, or criminal offenses. A municipality may designate an organization to act as its community justice center.
(Added 2007, No. 115 (Adj. Sess.), § 1.)
§ 1964 Structure of the community justice boards; confidentiality of certain restorative justice meetings
(a) Each community justice center:
(1) shall have an advisory board comprising at least 51 percent citizen volunteers;
(2) may use a variety of community-based restorative justice approaches, including restorative justice panels, group conferencing, or mediation; and
(3) shall include programs to resolve disputes, address the needs of victims, address the wrongdoing of the offender, and promote the rehabilitation of youthful and adult offenders.
(b) Meetings of restorative justice panels and meetings to conduct restorative justice group conferencing or mediation shall not be subject to the Vermont Open Meeting Law, 1 V.S.A. chapter 5, subchapter 2.
(Added 2007, No. 115 (Adj. Sess.), § 1; amended 2013, No. 143 (Adj. Sess.), § 5.)
§ 1965 Duties of the community justice centers
Each community justice center:
(1) shall work in close coordination with State agencies, law enforcement agencies, State’s Attorneys, social service providers, victim advocacy organizations, and other community resources in administering the programs defined in subdivision 1964(a)(3) of this title;
(2) shall, in collaboration with State and local agencies, provide training on the restorative justice process to citizen volunteers to enable their participation in the local community justice center;
(3) may address quality of life issues in the community it serves by providing informational and educational resources to the community; and
(4) may apply for funding from private foundations, other governmental sources, or other sources.
(Added 2007, No. 115 (Adj. Sess.), § 1; amended 2017, No. 113 (Adj. Sess.), § 157.)
§ 1966 Community justice centers’ relationship with state government entities
(a) Support from the Agency of Human Services. The Agency of Human Services shall provide to the community justice centers the information, analysis, and technical support that the community justice centers, in collaboration with the Agency of Human Services, determine are necessary to further their policy of restorative justice.
(b) Support from the Office of the Attorney General. The Community Justice Unit of the Office of the Attorney General shall provide to the community justice centers support for domestic violence and sexual violence case referrals in accordance with section 1968 of this title.
(c) Funding from the Agency of Human Services. The Agency of Human Services may provide funding and authorize community justice centers to participate in the implementation of State programs related to juvenile and criminal offenses.
(d) Access to information. Community justice center employees and volunteers participating in State-funded programs shall have access to information, analysis, and technical support as necessary to carry out their duties within the program in accordance with State and federal confidentiality statutes and policies. Victim information that is not part of the public record shall not be released without the victim’s consent.
(e) Liability.
(1) For the purposes of defining liability, community justice center volunteers participating in programs funded by the Agency of Human Services pursuant to subsection (c) of this section shall be considered volunteers of that agency.
(2) In all other cases, the State and the municipality shall each be liable for the acts and omissions of employees operating within the scope of their employment.
(Added 2007, No. 115 (Adj. Sess.), § 1; amended 2015, No. 97 (Adj. Sess.), § 56; 2023, No. 11, § 1, eff. May 8, 2023.)
§ 1967 Cases prohibited
No case involving domestic violence, sexual violence, sexual assault, or stalking shall be referred to a community justice center except through Department of Corrections offender reentry programs pursuant to protocols protecting victims, or as provided in section 1968 of this title. The community justice centers shall work with the Department of Corrections and the Center for Crime Victim Services or its designee to develop victim safety protocols for community justice centers that take into consideration victim needs such as safety, confidentiality, and privacy.
(Added 2007, No. 115 (Adj. Sess.), § 1; amended 2023, No. 11, § 2, eff. May 8, 2023.)
§ 1968 Referrals for domestic violence and sexual violence cases; Attorney General protocols
(a) Notwithstanding section 1967 of this title, community justice centers may accept referrals for domestic violence and sexual violence cases, provided the community justice center has a current and executed memorandum of understanding with a local member organization of the Vermont Network Against Domestic and Sexual Violence (Vermont Network). Such memorandums of understanding shall include protocols set forth in subsection (c) of this section.
(b) If the restorative justice approach set forth in the memorandum of understanding includes law enforcement or prosecutor referrals, a prosecutor and law enforcement agency with jurisdiction shall be party to the memorandum of understanding.
(c) On or before July 1, 2024, the Community Justice Unit of the Office of the Attorney General (Community Justice Unit), in consultation with the Vermont Network and the Center for Crime Victim Services, shall create guidance for memorandums of understanding. Memorandums of understanding shall include protocols that:
(1) establish a defined approach based on evidence or an established, promising program;
(2) prioritize victim safety;
(3) include voluntary referral and participation by parties;
(4) require initial and annual training for relevant community justice center staff, facilitators, and volunteers and relevant law enforcement and prosecutors on the dynamics involving domestic violence and sexual violence, trauma-informed approaches, and restorative justice principles;
(5) establish roles and participation of the community justice center, the local domestic and sexual violence organization, and other community partners as needed;
(6) establish written confidentiality standards that ensure constitutional protections and the privacy of participants;
(7) establish universal data collection standards developed by the Community Justice Unit; and
(8) establish written annual evaluation and quality improvement plans and processes that engage community and system stakeholders.
(d) The Community Justice Unit shall review each memorandum of understanding to ensure compliance with the protocols set forth in subsection (c) of this section and guidance created by the Community Justice Unit. The Community Justice Unit may engage other stakeholders who are relevant to the defined approach under consideration in the review process.
(e) Once a memorandum of understanding has been verified for compliance by the Community Justice Unit and has been executed by the parties, community justice centers may accept referrals involving domestic violence or sexual violence.
(f) Information related to any offense that a person divulges in preparation for, during, or as a follow-up to the provision of programming pursuant to this section shall not be used against the person in any criminal, civil, family, or juvenile investigation, prosecution, or case for any purpose, including impeachment or cross-examination. This subsection shall not be construed to prohibit the limited disclosure or use of information to specific persons in the following circumstances:
(1) Where there is a threat or statement of a plan that a person may reasonably believe is likely to result in death or bodily injury to themselves or others or damage to the property of another person.
(2) When disclosure is necessary to report bodily harm any party causes another during the restorative justice programming.
(3) Where there is a reasonable suspicion of abuse or neglect of a child or vulnerable adult and a report is made in accordance with the provisions of 33 V.S.A. § 4914 or 33 V.S.A. § 6903 or to comply with another law.
(4) Where a court or administrative tribunal determines that the materials were submitted by a participant to the program for the purpose of avoiding discovery of the material in a court or administrative proceeding. If a participant wishes to avail themselves of this provision, the participant may disclose this information in camera to a judicial officer for the purposes of seeking such a ruling.
(Added 2023, No. 11, § 3, eff. May 8, 2023.)
§ 1969 Public Records Act exemption
(a) Any records or information produced or acquired pursuant to this chapter shall be kept confidential and shall be exempt from public inspection or copying under Vermont’s Public Records Act.
(b) Notwithstanding subsection (a) of this section, a community justice center may disclose information to colleges, universities, public agencies of the State, and nonprofit research organizations that a community justice center has agreements with for use in connection with research projects of a public service nature, but no person associated with those institutions or agencies may disclose that information in any manner that would reveal the identity of an individual who provided the information to the community justice center.
(Added 2023, No. 11, § 3, eff. May 8, 2023.)
Chapter 59 Adoption and Enforcement of Ordinances and Rules
§ 1971 Authority to adopt
(a) A municipality may adopt, amend, repeal, and enforce ordinances or rules for any purposes authorized by law.
(b) An ordinance or rule adopted or amended by a municipality under this chapter or under its municipal charter authority shall be designated as either criminal or civil, but not both.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970; amended 1971, No. 14, § 10, eff. March 11, 1971; 1993, No. 237 (Adj. Sess.), § 2, eff. Nov. 1, 1994.)
§ 1972 Procedure
(a)(1) The legislative body of a municipality desiring to adopt an ordinance or rule may adopt it subject to the petition set forth in section 1973 of this title and shall cause it to be entered in the minutes of the municipality and posted in at least five conspicuous places within the municipality. The legislative body shall arrange for one formal publication of the ordinance or rule or a concise summary thereof in a newspaper circulating in the municipality on a day not more than 14 days following the date when the proposed provision is so adopted. Information included in the publication shall be the name of the municipality; the name of the municipality’s website, if the municipality actively updates its website on a regular basis; the title or subject of the ordinance or rule; the name, telephone number, and mailing address of a municipal official designated to answer questions and receive comments on the proposal; and where the full text may be examined. The same notice shall explain citizens’ rights to petition for a vote on the ordinance or rule at an annual or special meeting as provided in section 1973 of this title.
(2) Unless a petition is filed in accordance with section 1973 of this title, the ordinance or rule shall become effective 60 days after the date of its adoption, or at such time following the expiration of 60 days from the date of its adoption as is determined by the legislative body. If a petition is filed in accordance with section 1973 of this title, the taking effect of the ordinance or rule shall be governed by subsection 1973(e) of this title.
(b) All ordinances and rules adopted by a municipality shall be recorded in the records of the municipality.
(c) The procedure herein provided shall apply to the adoption of any ordinance or rule by a municipality unless another procedure is provided by charter, special law, or particular statute.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970; amended 1971, No. 14, § 11, eff. March 11, 1971; 1979, No. 180 (Adj. Sess.), § 1, eff. May 5, 1980; 2011, No. 155 (Adj. Sess.), § 7.)
§ 1973 Permissive referendum
(a) An ordinance or rule adopted by a municipality may be disapproved by a vote of a majority of the qualified voters of the municipality voting on the question at an annual or special meeting duly warned for the purpose, pursuant to a petition signed and submitted in accordance with subsection (b) of this section.
(b) A petition for a vote on the question of disapproving an ordinance or rule shall be signed by not less than five per cent of the qualified voters of the municipality, and presented to the legislative body or the clerk of the municipality within 44 days following the date of adoption of the ordinance or rule by the legislative body.
(c) When a petition is submitted in accordance with subsection (b) of this section, the legislative body shall call a special meeting within 60 days from the date of receipt of the petition, or include an article in the warning for the next annual meeting of the municipality if the annual meeting falls within the 60-day period, to determine whether the voters will disapprove the ordinance or rule.
(d) Not less than two copies of the ordinance or rule shall be posted at each polling place during the hours of voting, and copies thereof made available to voters at the polls on request. It shall be sufficient to refer to the ordinance or rule in the warning by title.
(e) If a petition for an annual or a special meeting is duly submitted in accordance with this section, to determine whether an ordinance or rule shall be disapproved by the voters of the municipality, the ordinance or rule shall take effect on the conclusion of the meeting, or at such later date as is specified in the ordinance or rule, unless a majority of the qualified voters voting on the question at the meeting vote to disapprove the ordinance or rule in which event it shall not take effect.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970; amended 1971, No. 14, § 12, eff. March 11, 1971.)
§ 1974 Enforcement of criminal ordinances
(a)(1) The violation of a criminal ordinance or rule adopted by a municipality under this chapter shall be a misdemeanor.
(2) The criminal ordinance or rule may provide for a fine or imprisonment, but no fine shall exceed $800.00, nor may any term of imprisonment exceed one year.
(3) Each day the violation continues shall constitute a separate offense.
(b) The presiding judge of the Superior Court, on application of the legislative body of a municipality, shall have jurisdiction to enjoin the violation of an ordinance or rule but the election of a municipality to proceed under this subsection shall not prevent prosecutions under subsection (a) of this section.
(c) Prosecutions of criminal ordinances shall be brought before the Superior Court pursuant to 4 V.S.A. § 32.
(d) Prosecutions of criminal ordinances may be brought on behalf of the municipality by the municipal attorney or other person designated by the legislative body of the municipality.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970; amended 1993, No. 237 (Adj. Sess.), § 3, eff. Nov. 1, 1994; 2009, No. 154 (Adj. Sess.), § 182; 2017, No. 74, § 95; 2017, No. 93 (Adj. Sess.), § 20; 2017, No. 130 (Adj. Sess.), § 14.)
§ 1974a Enforcement of civil ordinance violations
(a) A civil penalty of not more than $800.00 may be imposed for a violation of a civil ordinance. Each day the violation continues shall constitute a separate violation.
(b) All civil ordinance violations, except municipal parking violations, and all continuing civil ordinance violations, where the penalty is $800.00 or less, shall be brought before the Judicial Bureau pursuant to Title 4 and this chapter. If the penalty for all continuing civil ordinance violations is greater than $800.00, or injunctive relief, other than as provided in subsection (c) of this section, is sought, the action shall be brought in the Criminal Division of the Superior Court, unless the matter relates to enforcement under chapter 117 of this title, in which instance the action shall be brought in the Environmental Division of the Superior Court.
(c) The Judicial Bureau, on application of a municipality, may order that a civil ordinance violation cease.
(d) Civil enforcement of municipal zoning violations may be brought as a civil ordinance violation pursuant to this section or in an enforcement action pursuant to the requirements of chapter 117 of this title.
(e)(1) When filed in court as an enforcement action by the municipality, municipal parking violations shall be brought as civil violations. The right to trial by jury shall not apply in such cases.
(2) A person who received a criminal conviction in District Court for a municipal parking violation committed before January 1, 2005 may petition the court to seal all records in the matter. The person shall provide a copy of the petition to the State or municipal official who was the prosecuting authority on the matter in District Court. The court shall grant the petition if, after providing the prosecuting authority with an opportunity to respond, the court finds that sealing the records would serve the interests of justice.
(Added 1993, No. 237 (Adj. Sess.), § 4, eff. Nov. 1, 1994; amended 1997, No. 121 (Adj. Sess.), § 17; 2003, No. 115 (Adj. Sess.), § 77, eff. Jan. 1, 2005; 2003, No. 146 (Adj. Sess.), § 5, eff. Jan. 1, 2005; 2009, No. 154 (Adj. Sess.), § 236; 2011, No. 155 (Adj. Sess.), § 2.)
§ 1975 Evidence of adoption
A certificate of the clerk of a municipality showing the publication, posting, recording, and adoption of an ordinance or rule, or any of the foregoing, shall be presumptive evidence of the facts so stated in any action or proceeding in court or before any board, commission, or other tribunal.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970; amended 1971, No. 14, § 13, eff. March 11, 1971.)
§ 1976 Amendments and repeals
An ordinance or rule adopted in accordance with the procedures provided for in this chapter may be amended or repealed in accordance with the procedure herein set forth relating to adoption of ordinances and rules, and the provisions of this chapter, including the right of petition and referendum contained in section 1973 of this title, shall apply to the amendment or repeal of an ordinance or rule adopted under this chapter as well as to its enactment.
(Added 1969, No. 170 (Adj. Sess.), § 8, eff. March 2, 1970.)
§ 1977 Complaint for municipal civil ordinance violations
(a) The complaint in a municipal civil case shall be signed by the issuing municipal official. The original copy shall be filed with the Judicial Bureau, a copy shall be retained by the issuing municipal official, and two copies shall be given to the defendant.
(b) The municipal official may void or amend the municipal complaint issued by that official by so marking the complaint and sending it to the Judicial Bureau.
(c) The Court Administrator shall approve an appropriate summons and complaint form, pursuant to 4 V.S.A. § 1105(a), to implement the assessment of the full and waiver penalty provisions of this section.
(Added 1993, No. 237 (Adj. Sess.), § 5, eff. Nov. 1, 1994; amended 1997, No. 121 (Adj. Sess.), § 18; 1999, No. 58, § 4, eff. Sept. 1, 1999; 1999, No. 160 (Adj. Sess.), § 28.)
§ 1978 Repealed
[Repealed]
1997, No. 121 (Adj. Sess.), § 39(6).
§ 1979 Procedure
(a) Municipal ordinance violations shall be heard by the Bureau and the procedure shall be as provided in 4 V.S.A. chapter 29.
(b) At the hearing, the municipal attorney or designee of the legislative body of the municipality may dismiss or amend the complaint, subject to the approval of the hearing officer.
(c) Upon entry of default judgment pursuant to 4 V.S.A. § 1105(f), the hearing officer shall assess the full penalty provided for in the ordinance that was found to have been violated.
(d) Upon entry of judgment against the defendant after a contested hearing, the hearing officer shall assess a civil penalty in an amount not less than the waiver penalty and not more than the full penalty provided for in the ordinance that was found to have been violated.
(Added 1993, No. 237 (Adj. Sess.), § 5, eff. Nov. 1, 1994; amended 1997, No. 121 (Adj. Sess.), § 19; 1999, No. 58, § 5, eff. Sept. 1, 1999; 2017, No. 93 (Adj. Sess.), § 21.)
§ 1980 Repealed
[Repealed]
1997, No. 121 (Adj. Sess.), § 39(7).
§ 1981 Enforcement of order from Judicial Bureau
(a) Upon the filing of the complaint and entry of a judgment after hearing or entry of default by the hearing officer, subject to any appeal pursuant to 4 V.S.A. § 1107, the person found in violation shall have up to 30 days to pay the penalty to the Judicial Bureau. All the civil remedies for collection of judgments shall be available to enforce the final judgment of the Judicial Bureau.
(b) In addition to any other civil remedies available by law, a final judgment of the Judicial Bureau that has not been satisfied within 30 days shall, upon due recordation in the land records of the town in which any real or personal property of the defendant is located, constitute a lien upon that real or personal property, except for motor vehicles as defined by 23 V.S.A. § 4(21), and may be enforced within the time and in the manner provided for the collection of taxes pursuant to 32 V.S.A. chapter 133, subchapter 8.
(c) The remedies of civil contempt and referral to a collections agency for failure to pay a Judicial Bureau judgment under this section shall be as provided in 4 V.S.A. § 1109(c) and (d).
(Added 1993, No. 237 (Adj. Sess.), § 5, eff. Nov. 1, 1994; amended 1997, No. 121 (Adj. Sess.), § 20; 1997, No. 122 (Adj. Sess.), § 1; 1999, No. 58, § 6; 2003, No. 62, § 3; see effective date note below; 2009, No. 154 (Adj. Sess.), § 238; 2011, No. 83 (Adj. Sess.), § 1; 2019, No. 77, § 22, eff. June 19, 2019; 2019, No. 175 (Adj. Sess.), § 24, eff. Oct. 8, 2020.)
§ 1982 Reports
The Court Administrator shall prepare audits, records, and reports relating to the enforcement of municipal ordinance complaints in the Judicial Bureau.
(Added 1993, No. 237 (Adj. Sess.), § 5, eff. Nov. 1, 1994; amended 1997, No. 121 (Adj. Sess.), § 21.)
§ 1983 Identification to law enforcement officers required
(a) A law enforcement officer is authorized to detain a person if:
(1) the officer has reasonable grounds to believe the person has violated a municipal ordinance; and
(2) the person refuses to identify himself or herself satisfactorily to the officer when requested by the officer.
(b) The person may be detained only until the person identifies himself or herself satisfactorily to the officer or is properly identified. If the officer is unable to obtain the identification information, the person shall forthwith be brought before a Criminal Division of the Superior Court judge for that purpose. A person who refuses to identify himself or herself to the court on request shall immediately and without service of an order on the person be subject to civil contempt proceedings pursuant to 12 V.S.A. § 122.
(Added 1997, No. 122 (Adj. Sess.), § 2; amended 2009, No. 154 (Adj. Sess.), § 238; 2013, No. 194 (Adj. Sess.), § 14, eff. June 17, 2014.)
§ 1984 Repealed
[Repealed]
(Added 1999, No. 82 (Adj. Sess.), § 2; amended 2017, No. 79, § 14, eff. July 1, 2019; repealed by 2023, No. 171 (Adj. Sess.), § 20, eff. June 10, 2024.)
Chapter 60 Municipal Code of Ethics
§ 1991 Definitions
As used in this chapter:
(1) “Advisory body” means a public body that does not have supervision, control, or jurisdiction over legislative, quasi-judicial, tax, or budgetary matters.
(2) “Candidate” and “candidate’s committee” have the same meanings as in 17 V.S.A. § 2901.
(3) “Commission” means the State Ethics Commission established under 3 V.S.A. chapter 31, subchapter 3.
(4) “Confidential information” means information that is exempt from public inspection and copying under 1 V.S.A. § 315 et seq. or is otherwise designated by law as confidential.
(5) “Conflict of interest” means a direct or indirect interest of a municipal officer or such an interest, known to the officer, of a member of the officer’s immediate family or household, or of a business associate, in the outcome of a particular matter pending before the officer or the officer’s public body, or that is in conflict with the proper discharge of the officer’s duties. “Conflict of interest” does not include any interest that is not greater than that of other individuals generally affected by the outcome of a matter.
(6) “Department head” means any authority in charge of an agency, department, or office of a municipality.
(7) “Designated complaint recipient” means:
(A) a department head or employee specifically designated or assigned to receive a complaint that constitutes protected activity, as set forth in section 1997 of this title;
(B) a board or commission of the State or a municipality;
(C) the Vermont State Auditor;
(D) a State or federal agency that oversees the activities of an agency, department, or office of the State or a municipality;
(E) a law enforcement officer as defined in 20 V.S.A. § 2358;
(F) a federal or State court, grand jury, petit jury, law enforcement agency, or prosecutorial office;
(G) the legislative body of the municipality, the General Assembly or the U.S. Congress; or
(H) an officer or employee of an entity listed in this subdivision (7) when acting within the scope of the officer’s or employee’s duties.
(8) “Domestic partner” means an individual in an enduring domestic relationship of a spousal nature with the municipal officer, provided the individual and municipal officer:
(A) have shared a residence for at least six consecutive months;
(B) are at least 18 years of age;
(C) are not married to or considered a domestic partner of another individual;
(D) are not related by blood closer than would bar marriage under State law; and
(E) have agreed between themselves to be responsible for each other’s welfare.
(9) “Illegal order” means a directive to violate, or to assist in violating, a federal, State, or local law.
(10) “Immediate family” means an individual’s spouse, domestic partner, or civil union partner; child or foster child; sibling; parent; or such relations by marriage or by civil union or domestic partnership; or an individual claimed as a dependent for federal income tax purposes.
(11) “Legislative body” means the selectboard in the case of a town, the mayor, alderpersons, and city council members in the case of a city, the president and trustees in the case of an incorporated village, the members of the prudential committee in the case of a fire district, and the supervisor in the case of an unorganized town or gore.
(12) “Municipal officer” or “officer” means:
(A) any member of a legislative body of a municipality;
(B) any member of a quasi-judicial body of a municipality; or
(C) any individual who holds the position of, or exercises the function of, any of the following positions in or on behalf of any municipality:
(i) advisory budget committee member;
(ii) auditor;
(iii) building inspector;
(iv) cemetery commissioner;
(v) chief administrative officer;
(vi) clerk;
(vii) collector of delinquent taxes;
(viii) department heads;
(ix) first constable;
(x) lister or assessor;
(xi) mayor;
(xii) moderator;
(xiii) planning commission member;
(xiv) road commissioner;
(xv) town or city manager;
(xvi) treasurer;
(xvii) village or town trustee;
(xviii) trustee of public funds; or
(xix) water commissioner.
(13) “Municipality” means any town, village, or city.
(14) “Protected employee” means an individual employed on a permanent or limited status basis by a municipality.
(15) “Public body” has the same meaning as in 1 V.S.A. § 310.
(16) “Retaliatory action” includes any adverse performance or disciplinary action, including discharge, suspension, reprimand, demotion, denial of promotion, imposition of a performance warning period, or involuntary transfer or reassignment; that is given in retaliation for the protected employee’s involvement in a protected activity, as set forth in section 1997 of this title.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1992 Conflicts of interest
(a) Duty to avoid conflicts of interest. In the municipal officer’s official capacity, the officer shall avoid any conflict of interest or the appearance of a conflict of interest. The appearance of a conflict shall be determined from the perspective of a reasonable individual with knowledge of the relevant facts.
(b) Recusal.
(1) If a municipal officer is confronted with a conflict of interest or the appearance of one, the officer shall immediately recuse themselves from the matter, except as otherwise provided in subdivisions (2) and (5) of this subsection, and not take further action on the matter or participate in any way or act to influence a decision regarding the matter. After recusal, an officer may still take action on the matter if the officer is a party, as defined by section 1201 of this title, in a contested hearing or litigation and acts only in the officer’s capacity as a member of the public. The officer shall make a public statement explaining the officer’s recusal.
(2)(A) Notwithstanding subdivision (1) of this subsection (b), an officer may continue to act in a matter involving the officer’s conflict of interest or appearance of a conflict of interest if the officer first:
(i) determines there is good cause for the officer to proceed, meaning:
(I) the conflict is amorphous, intangible, or otherwise speculative;
(II) the officer cannot legally or practically delegate the matter; or
(III) the action to be taken by the officer is purely ministerial and does not involve substantive decision-making; and
(ii) the officer submits a written nonrecusal statement to the legislative body of the municipality regarding the nature of the conflict that shall:
(I) include a description of the matter requiring action;
(II) include a description of the nature of the potential conflict or actual conflict of interest;
(III) include an explanation of why good cause exists so that the municipal officer can take action in the matter fairly, objectively, and in the public interest;
(IV) be written in plain language and with sufficient detail so that the matter may be understood by the public; and
(V) be signed by the municipal officer.
(B) Notwithstanding subsection (A) of this subdivision (2), a municipal officer that would benefit from any contract entered into by the municipality and the officer, the officer’s immediate family, or an associated business of the officer or the officer’s immediate family, and whose official duties include execution of that contract, shall recuse themselves from any decision-making process involved in the awarding of that contract.
(C) Notwithstanding subsection (A) of this subdivision (2), a municipal officer shall not continue to act in a matter involving the officer’s conflict of interest or appearance of a conflict of interest if authority granted to another official or public body elsewhere under law is exercised to preclude the municipal officer from continuing to act in the matter.
(3) If an officer’s conflict of interest or the appearance of a conflict of interest concerns an official act or actions that take place outside a public meeting, the officer’s nonrecusal statement shall be filed with the clerk of the municipality and be available to the public for the duration of the officer’s service plus a minimum of five years.
(4) If an officer’s conflict of interest is related to an official municipal act or actions considered at a public meeting, the officer’s nonrecusal statement shall be filed as part of the minutes of the meeting of the public body in which the municipal officer serves.
(5) If, at a meeting of a public body, an officer becomes aware of a conflict of interest or the appearance of a conflict of interest for the officer and the officer determines there is good cause to proceed, the officer may proceed with the matter after announcing and fully stating the conflict on the record. The officer shall submit a written nonrecusal statement pursuant to subdivision (2) of this subsection within five business days after the meeting. The meeting minutes shall be subsequently amended to reflect the submitted written nonrecusal statement.
(c) Authority to inquire about conflicts of interest. If a municipal officer is a member of a public body, the other members of that body shall have the authority to inquire of the officer about any possible conflict of interest or any appearance of a conflict of interest and to recommend that the member recuse themselves from the matter.
(d) Confidential information. Nothing in this section shall require a municipal officer to disclose confidential information or information that is otherwise privileged under law.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1993 Prohibited conduct
(a) Directing unethical conduct. A municipal officer shall not direct any individual to act in a manner that would:
(1) benefit a municipal officer in a manner related to the officer’s conflict of interest;
(2) create a conflict of interest or the appearance of a conflict of interest for the officer or for the directed individual; or
(3) otherwise violate the Municipal Code of Ethics as described in this chapter.
(b) Preferential treatment. A municipal officer shall act impartially and not unduly favor or prejudice any person in the course of conducting official business. An officer shall not give, or represent an ability to give, undue preference or special treatment to any person because of the person’s wealth, position, or status or because of a person’s personal relationship with the officer, unless otherwise permitted or required by State or federal law.
(c) Misuse of position. A municipal officer shall not use the officer’s official position for the personal or financial gain of the officer, a member of the officer’s immediate family or household, or the officer’s business associate.
(d) Misuse of information. A municipal officer shall not use nonpublic or confidential information acquired during the course of official business for personal or financial gain of the officer or for the personal or financial gain of a member of the officer’s immediate family or household or of an officer’s business associate.
(e) Misuse of government resources. A municipal officer shall not make use of a town’s, city’s, or village’s materials, funds, property, personnel, facilities, or equipment, or permit another person to do so, for any purpose other than for official business unless the use is expressly permitted or required by State law; ordinance; or a written agency, departmental, or institutional policy or rule. An officer shall not engage in or direct another person to engage in work other than the performance of official duties during working hours, except as permitted or required by law or a written agency, departmental, or institutional policy or rule.
(f) Gifts.
(1) No person shall offer or give to a municipal officer or candidate, or the officer’s or candidate’s immediate family, anything of value, including a gift, loan, political contribution, reward, or promise of future employment based on any understanding that the vote, official action, or judgment of the municipal officer or candidate would be, or had been, influenced thereby.
(2) A municipal officer or candidate shall not solicit or accept anything of value, including a gift, loan, political contribution, reward, or promise of future employment based on any understanding that the vote, official action, or judgment of the municipal officer or candidate would be or had been influenced thereby.
(3) Nothing in subdivision (1) or (2) of this subsection shall be construed to apply to any campaign contribution that is lawfully made to a candidate or candidate’s committee pursuant to 17 V.S.A. chapter 61 or to permit any activity otherwise prohibited by 13 V.S.A. chapter 21.
(g) Unauthorized commitments. A municipal officer shall not make unauthorized commitments or promises of any kind purporting to bind the municipality unless otherwise permitted by law.
(h) Benefit from contracts. A municipal officer shall not benefit from any contract entered into by the municipality and the officer, the officer’s immediate family, or an associated business of the officer or the officer’s immediate family, unless:
(1) the benefit is not greater than that of other individuals generally affected by the contract;
(2) the contract is a contract for employment with the municipality;
(3) the contract was awarded through an open and public process of competitive bidding; or
(4) the total value of the contract is less than $2,000.00.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1994 Guidance and advisory opinions
(a) Guidance.
(1) The Executive Director of the State Ethics Commission may provide guidance only to a municipal officer and only with respect to the officer’s duties regarding any provision of this chapter or regarding any other issue related to governmental ethics.
(2) The Executive Director may consult with members of the State Ethics Commission and the municipality in preparing this guidance.
(3) Guidance provided under this subsection shall be exempt from public inspection and copying under the Public Records Act and shall be kept confidential unless the receiving entity has publicly disclosed it.
(b) Advisory opinions.
(1) On the written request of any municipal officer, the Executive Director may issue an advisory opinion to that officer that provides general advice or interpretation with respect to the officer’s duties regarding any provision of this chapter or regarding any other issue related to governmental ethics.
(2) The Executive Director may consult with members of the Commission and the municipality in preparing these advisory opinions.
(3) The Executive Director may seek comment from persons interested in the subject of an advisory opinion under consideration.
(4) The Executive Director shall post on the Commission’s website any advisory opinions that the Executive Director issues. Personally identifiable information is exempt from public inspection and copying under the Public Records Act and shall be kept confidential unless the municipal officer who is the subject of the advisory opinion authorizes the publication of the personally identifiable information.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1995 Ethics training
(a) Initial ethics training. Within 120 days after the election or appointment of a member of a legislative body or a quasi-judicial body, or a chief administrative officer, mayor, town or city manager, that individual shall complete ethics training, as approved by the State Ethics Commission. A municipality shall make a reasonable effort to provide training to all other municipal officers. The officer, the officer’s employer, or another individual designated by the municipality shall document the officer’s completed ethics training.
(b) Continuing ethics training. Upon completing initial ethics training, a municipal officer shall complete additional ethics training, as determined by the State Ethics Commission, every three years.
(c) Approval of training. Ethics trainings shall at minimum reflect the contents of the Municipal Ethics Code and be approved by the State Ethics Commission. Approval of ethics trainings shall not be unreasonably withheld. Ethics trainings shall be conducted by the State Ethics Commission, the municipality, or a third party approved in advance by the State Ethics Commission. The State Ethics Commission may approve trainings that are in person, online, and synchronous or asynchronous. The State Ethics Commission shall require ethics training to be designed in a manner as to achieve improved competency in the subject matter rather than rely on fixed hours of training as a measure of completed training.
(d) Training provided by the Commission.
(1) The State Ethics Commission shall develop and make available to municipalities ethics training required of municipal officers by subsections (a) and (b) of this section.
(2) The Commission shall develop and make available to municipalities trainings regarding how to investigate and resolve complaints that allege violations of the Municipal Code of Ethics.
(e) State Ethics Commission liaisons. Each municipality, acting through its legislative body, shall designate an employee as its liaison to the State Ethics Commission. If a municipality does not have any employees, the legislative body shall designate one of its members as its liaison to the State Ethics Commission. The municipality shall notify the Commission in writing of any newly designated liaison within 30 days after such change. The Commission shall disseminate information to the designated liaisons and conduct educational seminars for designated liaisons on a regular basis on a schedule to be determined by the Commission, in consultation with the municipality. The Commission shall report any ethics training conducted by the Commission and completed by an officer to the liaison of that officer’s municipality.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1996 Duties of municipalities
Each municipality shall:
(1) Ensure that the following are posted on the town’s, city’s, or village’s website or, if no such website exists, ensure that a copy of each is received by all municipal officers and is made available to the public upon request:
(A) the Municipal Code of Ethics;
(B) procedures for the investigation and enforcement of complaints that allege a municipal officer has violated the Municipal Code of Ethics, as required by section 1997 of this title; and
(C) any supplemental or additional ordinances, rules, and personnel policies regarding ethics adopted by a municipality.
(2) Maintain a record of municipal officers who have received ethics training pursuant to section 1995 of this title.
(3) Designate a municipal officer or body to receive complaints alleging violations of the Municipal Code of Ethics.
(4) Maintain a record of received complaints and the disposition of each complaint made against a municipal officer for the duration of the municipal officer’s service plus a minimum of five years.
(5) Upon request of the State Ethics Commission, promptly provide the State Ethics Commission with a summary of complaints received by the municipality and the outcome of each complaint, but excluding any personally identifiable information.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1997 Enforcement and remedies
Each municipality shall adopt, by ordinance, rule, or personnel policy, procedures for the investigation of complaints that allege a municipal officer has violated the Municipal Code of Ethics and the enforcement in instances of substantiated complaints, including methods of enforcement and available remedies.
(Added 2023, No. 171 (Adj. Sess.), § 22a, eff. June 10, 2024.)
§ 1998 Whistleblower protection
(a) Protected activity.
(1) An agency, department, appointing authority, official, or employee of a municipality shall not engage in retaliatory action against a protected employee because the protected employee refuses to comply with an illegal order or engages in any of the following:
(A) providing to a designated complaint recipient a good faith report or good faith testimony that alleges an entity of a municipality, employee or official of a municipality, or a person providing services to a municipality under contract has engaged in a violation of law or in waste, fraud, abuse of authority, or a threat to the health of employees, the public, or persons under the care of a municipality; or
(B) assisting or participating in a proceeding to enforce the provisions of this section.
(2) No agency, department, appointing authority, official, or employee of a municipality shall attempt to restrict or interfere with, in any manner, a protected employee’s ability to engage in any of the protected activity described in subdivision (1) of this subsection.
(3) No agency, department, appointing authority, or manager of a municipality shall require any protected employee to discuss or disclose the employee’s testimony, or intended testimony, prior to the employee’s appearance to testify before the General Assembly if the employee is not testifying on behalf of an entity of the municipality.
(4) No protected employee may divulge information that is confidential under State or federal law. An act by which a protected employee divulges such information shall not be considered protected activity under this subsection.
(5) In order to establish a claim of retaliation based upon the refusal to follow an illegal order, a protected employee shall assert at the time of the refusal the employee’s good faith and reasonable belief that the order is illegal.
(b) Communications with legislative bodies of municipalities and the General Assembly.
(1) No entity of a municipality may prohibit a protected employee from engaging in discussion with a member of a legislative body or the General Assembly or from testifying before a committee of a municipality or a committee of the General Assembly; provided, however, that a protected employee may not divulge confidential information, and an employee shall be clear that the employee is not speaking on behalf of an entity of a municipality.
(2) No protected employee shall be subject to discipline, discharge, discrimination, or other adverse employment action as a result of the employee providing information to a member of a legislative body, a legislator, or a committee of a municipality or a committee of the General Assembly; provided, however, that the protected employee does not divulge confidential information and that the employee is clear that the employee is not speaking on behalf of any entity of the municipality. The protections set forth in this section shall not apply to statements that constitute hate speech or threats of violence against a person.
(3) In the event that an appearance before a committee of a municipality or committee of the General Assembly will cause a protected employee to miss work, the employee shall request to be absent from work and shall provide as much notice as is reasonably possible. The request shall be granted unless there is good cause to deny the request. If a request is denied, the decision and reasons for the denial shall be in writing and shall be provided to the protected employee in advance of the scheduled appearance. The protections set forth in this subsection (b) are subject to the efficient operation of municipal government, which shall prevail in any instance of conflict.
(c) Enforcement and preemption.
(1) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of a protected employee under other federal, State, or local law, or under any collective bargaining agreement or employment contract, except the limitation on multiple actions as set forth in this subsection.
(2) A protected employee who files a claim of retaliation for protected activity with the Vermont Labor Relations Board or through binding arbitration under a grievance procedure or similar process available to the employee may not bring such a claim in Superior Court.
(3) A protected employee who files a claim under this section in Superior Court may not bring a claim of retaliation for protected activity under a grievance procedure or similar process available to the employee.
(d) Remedies. A protected employee who brings a claim in Superior Court may be awarded the following remedies:
(1) reinstatement of the employee to the same position, seniority, and work location held prior to the retaliatory action;
(2) back pay, lost wages, benefits, and other remuneration;
(3) in the event of a showing of a willful, intentional, and egregious violation of this section, an amount up to the amount of back pay in addition to the actual back pay;
(4) other compensatory damages;
(5) interest on back pay;
(6) appropriate injunctive relief; and
(7) reasonable costs and attorney’s fees.
(e) Posting. Every agency, department, and office of a municipality shall post and display notices of protected employee protection under this section in a prominent and accessible location in the workplace.
(f) Limitations of actions. An action alleging a violation of this section brought under a grievance procedure or similar process shall be brought within the period allowed by that process or procedure. An action brought in Superior Court shall be brought within 180 days following the date of the alleged retaliatory action.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
§ 1999 Municipal charters; supplemental ethics policies
(a) To the extent any provisions of this chapter conflict with the provisions of any municipal charter listed in Title 24 Appendix, the provisions of this chapter shall prevail.
(b) A municipality may adopt additional ordinances, rules, and personnel policies regarding ethics, provided that these are not in conflict with the provisions of this chapter.
(Added 2023, No. 171 (Adj. Sess.), § 22, eff. January 1, 2025.)
Chapter 61 Regulatory Provisions; Police Power of Municipalities
Subchapter 1 Definitions for Chapter
§ 2001 Definition
The term “legislative body” of a municipality, as used in this chapter, shall mean the mayor and board of aldermen of a city, the selectboard of a town, and the president and trustees of an incorporated village. The term “selectboard,” as used in this chapter, shall include the mayor and board of aldermen of a city and the president and trustees of an incorporated village. The term “town” shall mean village or city.
Subchapter 2 Jitneys and Taxis
§ 2031 Jitneys; regulations; powers
The legislative branch of a municipality shall have the power to make, establish, alter, amend, or repeal regulations for the operation, parking, soliciting, delivery, or fares in the jitney and taxi business in general within the municipality and to establish penalties for the breach thereof, not to exceed $100.00 for each violation thereof.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 80, eff. April 9, 1974.)
§ 2032 Referendum
The right of a legislative branch of a municipality to make such regulations shall not take effect until they have been approved and accepted by a majority of the voters of the municipality attending a duly warned regular or special meeting called for that purpose, nor shall such regulations take effect until they are published once a week on the same day for two consecutive weeks in a newspaper published in such municipality or, in the absence thereof, in a newspaper circulating within the county.
Subchapter 3 Junkyards [repealed]
§§ 2061-2066 Repealed
[Repealed]
1961, No. 261, § 17, eff. July 31, 1961.
§§ 2067-2081 Repealed
[Repealed]
1969, No. 98, § 2.
Subchapter 4 Radio-Television Interference
§ 2091 Complaint
Upon complaint to the legislative body that some person, firm, or corporation, having authority to transact business in this State, is unreasonably and unnecessarily disturbing or interfering with the reception of radio or television waves used for radio or television transmission, the legislative body, after notice to such person, firm, or corporation, may investigate or cause to be investigated such complaint under such rules and regulations as the legislative body may prescribe as to service of such notice and as to the date of hearing thereon.
§ 2092 Investigation; notice
If, upon such investigation, the source and cause of such alleged disturbance or interference is determined, after due notice as provided in section 2091 of this title, the legislative body shall give due notice in writing to the person, firm, or corporation found by such legislative body to be responsible therefor to correct or eliminate the cause of such unnecessary or unreasonable disturbance or interference, within a reasonable time thereafter to be stated in such notice. Such notice may be sent to the person, firm, or corporation affected, by registered mail addressed to the residence or place of business in this State.
§ 2093 Penalty
Within the time fixed in the notice, a person who refuses and neglects to correct or eliminate the cause of the unreasonable disturbance, provided the same is reasonably subject to correction at a cost not to exceed $50.00, and who, after such time, knowingly, willfully, or maliciously continues unreasonably or unnecessarily to disturb the reception of such radio or television waves, shall be fined not more than $50.00.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 81, eff. April 9, 1974.)
Subchapter 5 Nuisances
§ 2121 Injunctions
The selectboard of a town in the name and behalf of such town or the town school district therein, as the case may be, and the trustees of an incorporated village, in the name and behalf of such village, may prefer complaint for relief by injunction for the abatement of public nuisances. The Superior Court shall have jurisdiction of such actions.
Subchapter 6 Curfew
§ 2151 Child welfare
A municipality may make regulations respecting children under 16 years of age who are allowed to loiter in the streets or other public places. Such regulations shall be conducive to their welfare and to the public good. Such municipality may fix a penalty of not more than $5.00 for each violation of such regulations to be recovered against the person having the custody of such child in a civil action on this statute.
Subchapter 7 Sale of Produce
§ 2181 License not required
Owners and renters of land shall have the right to vend or sell all products of such land at wholesale or retail, in person or by agent, in towns without obtaining licenses therefor from such towns.
Subchapter 8 Rubbish and Garbage
§ 2201 Throwing, depositing, burning, and dumping refuse; penalty; summons and complaint
(a)(1) Prohibition. Every person shall be responsible for proper disposal of his or her own solid waste. A person shall not throw, dump, deposit, or cause or permit to be thrown, dumped, or deposited any solid waste as defined in 10 V.S.A. § 6602, refuse of whatever nature, or any noxious thing in or on lands or waters of the State outside a solid waste management facility certified by the Agency of Natural Resources.
(2) There shall be a rebuttable presumption that a person who is identifiable from an examination of illegally disposed solid waste is the person who violated a provision of this section.
(3) No person shall burn or cause to be burned in the open or incinerate in any container, furnace, or other device any solid waste without:
(A) first having obtained all necessary permits from the Agency of Natural Resources, the District Environmental Commission, and the municipality where the burning is to take place; and
(B) complying with all relevant State and local regulations and ordinances.
(b) Prosecution of violations. A person who violates a provision of this section commits a civil violation and shall be subject to a civil penalty of not more than $800.00.
(1) This violation shall be enforceable in the Judicial Bureau pursuant to the provisions of 4 V.S.A. chapter 29 in an action that may be brought by a municipal attorney, a solid waste management district attorney, an environmental enforcement officer employed by the Agency of Natural Resources, a designee of the legislative body of the municipality, or any duly authorized law enforcement officer.
(2) If the throwing, placing, or depositing was done from a snowmobile, vessel, or motor vehicle, except a motor bus, there shall be a rebuttable presumption that the throwing, placing, or depositing was done by the operator of the snowmobile, vessel, or motor vehicle.
(3) Nothing in this section shall be construed as affecting the operation of an automobile graveyard or salvage yard as defined in section 2241 of this title, nor shall anything in this section be construed as prohibiting the installation and use of appropriate receptacles for solid waste provided by the State or towns.
(c) Roadside cleanup. A person found in violation of this section may be assigned to spend up to 80 hours collecting trash or litter from a specified segment of roadside or from a specified area of public property.
(d) [Repealed.]
(e) Revocation of hunting, fishing, or trapping license. The Commissioner of Fish and Wildlife shall revoke the privilege of a person found in violation of this section from holding a hunting, fishing, or trapping license for a period of one year from the date of the conviction, if the person fails to pay the penalty set forth in subsection (b) of this section. The Bureau shall immediately notify the Commissioner of Fish and Wildlife of the entry of judgment.
(f) [Repealed.]
(g) Amendment of complaint. A person authorized to enforce this section may amend or dismiss a complaint issued by that person by marking the complaint and returning it to the Judicial Bureau. At the hearing, a person authorized to enforce this section may amend or dismiss a complaint issued by that person, subject to the approval of the hearing judge.
(h) [Repealed.]
(i) Applicability. Enforcement actions taken under this section shall in no way preclude the Agency of Natural Resources, the Attorney General, or an appropriate State prosecutor from initiating other or further enforcement actions under the civil, administrative, or criminal enforcement provisions of 10 V.S.A. chapter 23, 47, 159, 201, or 211. To the extent that enforcement under this section is by an environmental enforcement officer employed by the Agency of Natural Resources, enforcement under this section shall preclude other enforcement by the Agency for the same offence.
(j) Definitions. As used in this section:
(1) “Motor vehicle” shall have the same meaning as in 23 V.S.A. § 4(21).
(2) “Snowmobile” shall have the same meaning as in 23 V.S.A. § 3801.
(3) “Vessel” means motor boats, boats, kayaks, canoes, sailboats, and all other types of watercraft.
(4) “Waters” shall have the same meaning as in 10 V.S.A. § 1251(13).
(Amended 1961, No. 164, eff. June 14, 1961; 1965, No. 62, eff. May 19, 1965; 1967, No. 90, § 1, eff. July 1, 1969; 1969, No. 287 (Adj. Sess.), § 1, eff. Sept. 1, 1970; 1971, No. 245 (Adj. Sess.), §§ 1, 2, eff. April 6, 1972; 1989, No. 286 (Adj. Sess.), § 4; 1999, No. 63, § 3; 1999, No. 160 (Adj. Sess.), § 29; 2005, No. 23, § 1; 2009, No. 56, § 3; 2013, No. 117 (Adj. Sess.), § 1; 2017, No. 93 (Adj. Sess.), § 22; 2017, No. 130 (Adj. Sess.), § 15.)
§ 2201a Depositing household and commercial trash in roadside and park litter barrels
(a) A person shall not use trash containers which are provided for travel trash at State parks, public picnic and rest areas, and roadside turnouts as dumping places for household garbage, household trash, farm waste, or commercial waste materials or deposit such garbage, trash, or waste material on or near any spot commonly used for picnic purposes.
(b) A person who violates a provision of this section shall be fined not more than $200.00 or may work a total of not more than 40 hours collecting trash or litter from roadsides or other public property under such supervision as the court may direct.
(Added 1983, No. 210 (Adj. Sess.).)
§ 2202 Repealed
[Repealed]
1977, No. 106, § 4.
§ 2202a Municipalities—Responsibilities for solid waste
(a) Municipalities are responsible for the management and regulation of the storage, collection, processing, and disposal of solid wastes within their jurisdiction in conformance with the State Solid Waste Management Plan authorized under 10 V.S.A. chapter 159. Municipalities may issue exclusive local franchises and may make, amend, or repeal rules necessary to manage the storage, collection, processing, and disposal of solid waste materials within their limits and impose penalties for violations thereof, provided that the rules are consistent with the State Plan and rules adopted by the Secretary of Natural Resources under 10 V.S.A. chapter 159. A fine may not exceed $1,000.00 for each violation. This section shall not be construed to permit the existence of a nuisance.
(b) Municipalities may satisfy the requirements of the State Solid Waste Management Plan and the rules of the Secretary of Natural Resources through agreement between any other unit of government or any operator having a permit from the Secretary, as the case may be.
(c)(1) On or before July 1, 1988, each municipality, as defined in subdivision 4303(12) of this title, shall join or participate in a solid waste management district organized pursuant to chapter 121 of this title on or before January 1, 1988 or participate in a regional planning commission’s planning effort for purposes of solid waste implementation planning, as implementation planning is defined in 10 V.S.A. § 6602.
(2) On or before July 1, 1990, each regional planning commission shall work on a cooperative basis with municipalities within the region to prepare a solid waste implementation plan for adoption by all of the municipalities within the region that are not members of a solid waste district, that conforms to the State Waste Management Plan and describes in detail how the region will achieve the priorities established by 10 V.S.A. § 6604(a)(1). A solid waste implementation plan adopted by a municipality that is not a member of a district shall not in any way require the approval of a district. On or before July 1, 1990, each solid waste district shall adopt a solid waste implementation plan that conforms to the State Waste Management Plan, describes in detail how the district will achieve the priorities established by 10 V.S.A. § 6604(a), and is in conformance with any regional plan adopted pursuant to chapter 117 of this title. Municipalities or solid waste management districts that have contracts in existence as of January 1, 1987, which contracts are inconsistent with the State Solid Waste Plan and the priorities established in 10 V.S.A. § 6604(a), shall not be required to breach those contracts, provided they make good faith efforts to renegotiate those contracts in order to comply. The Secretary may extend the deadline for completion of a plan upon finding that despite good faith efforts to comply, a regional planning commission or solid waste management district has been unable to comply, due to delays in completion of a landfill evaluation under 10 V.S.A. § 6605a.
(3) A municipality that does not join or participate as provided in this subsection shall not be eligible for State funds to plan and construct solid waste facilities, nor can it use facilities certified for use by the region or by the solid waste management district.
(4) A regional plan or a solid waste implementation plan shall include a component for the management of nonregulated hazardous wastes.
(A) At the outset of the planning process for the management of nonregulated hazardous wastes and throughout the process, solid waste management districts or regional planning commissions, with respect to areas not served by solid waste management districts, shall solicit the participation of owners of solid waste management facilities that receive mixed solid wastes, local citizens, businesses, and organizations by holding informal working sessions that suit the needs of local people. At a minimum, an advisory committee composed of citizens and business persons shall be established to provide guidance on both the development and implementation of the nonregulated hazardous waste management plan component.
(B) The regional planning commission or solid waste management district shall hold at least two public hearings within the region or district after public notice on the proposed plan component or amendment.
(C) The plan component shall be based upon the following priorities, in descending order:
(i) the elimination or reduction, whenever feasible, in the use of hazardous, particularly toxic, substances;
(ii) reduction in the generation of hazardous waste;
(iii) proper management of household and exempt small quantity generator hazardous waste; and
(iv) reduction in the toxicity of the solid waste stream, to the maximum extent feasible in accordance with the priorities of 10 V.S.A. § 6604(a)(1).
(D) At a minimum, this plan component shall include the following:
(i) an analysis of preferred management strategies that identifies advantages and disadvantages of each option;
(ii) an ongoing educational program for schools and households, promoting the priorities of this subsection;
(iii) an educational and technical assistance program for exempt small quantity generators that provides information on the following: use and waste reduction; preferred management strategies for specific waste streams; and collection, management, and disposal options currently or potentially available;
(iv) a management program for household hazardous waste;
(v) a priority management program for unregulated hazardous waste streams that present the greatest risks;
(vi) a waste diversion program element that is coordinated with any owners of solid waste management facilities and is designed to remove unregulated hazardous waste from the waste stream entering solid waste facilities and otherwise to properly manage unregulated hazardous waste; and
(vii) a waste management system established for all the waste streams banned from landfills under 10 V.S.A. § 6621a.
(E) For the purposes of this subsection, nonregulated hazardous wastes include hazardous wastes generated by households and exempt small quantity generators as defined in the hazardous waste management regulations adopted under 10 V.S.A. chapter 159.
(d) By no later than July 1, 2015, a municipality shall implement a variable rate pricing system that charges for the collection of municipal solid waste from a residential customer for disposal based on the volume or weight of the waste collected.
(e) The education and outreach requirements of this section need not be met through direct mailings, but may be met through other methods such as television and radio advertising; use of the internet, social media, or electronic mail; or the publication of informational pamphlets or materials.
(Added 1977, No. 106, § 3; amended 1987, No. 76, § 18; 1987, No. 78, § 3; 1989, No. 281 (Adj. Sess.), § 6, eff. June 22, 1990; 1989, No. 282 (Adj. Sess.), § 5, eff. June 22, 1990; 1989, No. 286 (Adj. Sess.), § 12, eff. June 22, 1990; 1991, No. 100, § 12; 1993, No. 81, § 5; 2011, No. 148 (Adj. Sess.), § 11; 2017, No. 74, § 96.)
§ 2203 Repealed
[Repealed]
1977, No. 106, § 4.
§ 2203a Municipal disposal
Each town and city shall provide for the operation and maintenance of any of the following: sanitary landfills, incinerators, recycling centers, intermediate processing facilities, composting plants, or resource recovery facilities or a combination thereof as the exclusive means for disposal of solid waste, as defined in 10 V.S.A. § 6602, subject to the rules and guidelines promulgated by the Secretary of the Agency of Natural Resources.
(Added 1977, No. 106, § 3; amended 1985, No. 231 (Adj. Sess.), § 1; 1987, No. 76, § 18.)
§ 2203b Recycling centers
(a) Whether or not a municipality provides for the operation and maintenance of a recycling center or intermediate processing facility pursuant to section 2203a of this title, the municipality may establish requirements for the management of such a center or facility.
(b) [Repealed.]
(c) For the purposes of Titles 10, 24, and 32, recycling means the process of utilizing waste for the production of raw materials or products, but shall not include processing solid waste to produce energy or fuel products.
(d) The provisions of this section shall not apply to hazardous waste.
(Added 1985, No. 231 (Adj. Sess.), § 2; 1999, No. 63, § 6.)
§ 2204 Repealed
[Repealed]
1979, No. 47, § 1(1), eff. April 25, 1979.
§ 2205 Repealed
[Repealed]
1979, No. 47, § 1(2), eff. April 25, 1979.
§ 2206 Recycling centers
(a) The Secretary of Natural Resources shall develop a State plan for the establishment and operation of solid waste recycling centers sufficient to meet the need for solid waste recycling throughout the State. In developing a State plan, the Secretary may establish pilot or demonstration projects for the purpose of determining equitable regions or methods for solid waste recycling. Pursuant to such plan, the Secretary shall establish and operate or contract for the establishment and operation of a solid waste recycling center within each town, or within each administrative district created pursuant to 3 V.S.A. § 4001, or within such other regions as he or she deems reasonable to efficiently utilize solid waste recycling facilities at locations determined by him or her with the approval of the legislative body of the town in which the facility is to be located. Each recycling center shall be used for the storage, processing, and sale or disposal of solid waste. The Secretary may purchase, lease, or rent land or designate land owned by the State or any agency or department thereof for use as recycling centers.
(b) The Secretary is authorized to contract in the name of the State for the service of independent contractors under bond or with an agency or department of the State or a town to operate the recycling centers or to collect solid waste and deliver it to a recycling center.
(c) The Secretary shall adopt rules pursuant to 3 V.S.A. chapter 25 to implement the provisions of this section.
(d) [Omitted.]
(Added 1971, No. 252 (Adj. Sess.), § 2; amended 2015, No. 23, § 124.)
Subchapter 9 Trailer Parks
§§ 2231-2233 Repealed
[Repealed]
2007, No. 120 (Adj. Sess.), § 1(a).
Subchapter 10 Salvage Yards
§ 2241 Definitions
For the purposes of this subchapter:
(1) “Abandoned” means a motor vehicle as defined in 23 V.S.A. § 2151.
(2) “Board” means the State Transportation Board or its duly delegated representative.
(3) “Highway” means any highway as defined in 19 V.S.A. § 1.
(4) “Interstate or primary highway” means any highway, including access roads, ramps, and connecting links, which have been designated by the State with the approval of the Federal Highway Administration, Department of Transportation, as part of the National System of Interstate and Defense Highways, or as a part of the National System of Primary Highways.
(5) “Junk” means old or scrap copper, brass, iron, steel, and other old or scrap or nonferrous material, including rope, rags, batteries, glass, rubber debris, waste, trash, or any discarded, dismantled, wrecked, scrapped, or ruined motor vehicles or parts thereof.
(6) “Junk motor vehicle” means a discarded, dismantled, wrecked, scrapped, or ruined motor vehicle or parts thereof, or a motor vehicle, other than an on-premise utility vehicle, which is allowed to remain unregistered or uninspected for a period of 90 days from the date of discovery.
(7) “Salvage yard” means any place of outdoor storage or deposit for storing, keeping, processing, buying, or selling junk or as a scrap metal processing facility. “Salvage yard” also means any outdoor area used for operation of an automobile graveyard. It does not mean a garage where wrecked or disabled motor vehicles are stored for less than 90 days for inspection or repairs.
(8) “Legislative body” means the city council of a city, the selectboard of a town, or the board of trustees of a village.
(9) “Main traveled way” means the portion of a highway designed for the movement of motor vehicles, shoulders, auxiliary lanes, and roadside picnic, parking, rest, and observation areas and other areas immediately adjacent and contiguous to the traveled portion of the highway and designated by the Transportation Board as a roadside area for the use of highway users and generally but not necessarily located within the highway right-of-way.
(10) “Motor vehicle” means any vehicle propelled or drawn by power other than muscular power, including trailers.
(11) “Notice” means by certified mail with return receipt requested.
(12) “Scrap metal processing facility” means a manufacturing business which purchases sundry types of scrap metal from various sources including the following: industrial plants, fabricators, manufacturing companies, railroads, junkyards, auto wreckers, salvage dealers, building wreckers, and plant dismantlers and sells the scrap metal in wholesale shipments directly to foundries, ductile foundries, and steel foundries where the scrap metal is melted down and utilized in their manufacturing process.
(13) “Secretary” means the Secretary of Natural Resources or the Secretary’s designee.
(14) “Automobile hobbyist” means a person who is not primarily engaged in the business of:
(A) selling motor vehicles or motor vehicle parts; or
(B) accepting, storing, or dismantling junk motor vehicles.
(15) “Automobile graveyard” means a yard, field, or other outdoor area on a property owned or controlled by a person and used or maintained for storing or depositing four or more junk motor vehicles. “Automobile graveyard” does not include:
(A) an area used by an automobile hobbyist to store, organize, restore, or display motor vehicles or parts of such vehicles, provided that the hobbyist’s activities comply with all applicable federal, State, and municipal law;
(B) an area used for the storage of motor vehicles exempt from registration under 23 V.S.A. chapter 7;
(C) an area owned or used by a dealer registered under 23 V.S.A. § 453 for the storage of motor vehicles; or
(D) an area used or maintained for the parking or storage of operational commercial motor vehicles, as that term is defined in 23 V.S.A. § 4103(4), that are temporarily out of service and unregistered but are expected to be used in the future by the vehicle operator or owner.
(Added 1969, No. 98, § 1; amended 1971, No. 36, § 1, eff. April 1, 1971; 1973, No. 164 (Adj. Sess.), § 2, eff. July 1, 1974; 1983, No. 185 (Adj. Sess.), § 1; 2003, No. 101 (Adj. Sess.), § 2; 2009, No. 56, § 4; 2009, No. 93 (Adj. Sess.), § 2; 2013, No. 161 (Adj. Sess.), § 72.)
§ 2242 Requirement for operation or maintenance
(a) A person shall not operate, establish, or maintain a salvage yard unless the person:
(1) holds a certificate of approval for the location of the salvage yard; and
(2) holds a certificate of registration issued by the Secretary to operate, establish, or maintain a salvage yard.
(b) The issuance of a certificate of registration under subsection (a) of this section shall not relieve a salvage yard from the obligation to comply with existing State and federal environmental laws and to obtain all permits required under State or federal environmental law.
(c) The Secretary may require a person to obtain a salvage yard certificate of registration under this section upon a determination, based on available information, that the person has taken action to circumvent the requirements of this subchapter.
(d) Prior to issuing a certificate of registration, the Secretary shall obtain written acknowledgment that the person seeking the certificate is aware of, and will comply with, the requirements for buying, selling, transporting, and keeping records concerning nonferrous scrap, metal articles, proprietary articles, and railroad scrap pursuant to 9 V.S.A. chapter 82.
(Added 1969, No. 98, § 1; amended 1983, No. 185 (Adj. Sess.), § 2; 2009, No. 56, § 5; 2009, No. 93 (Adj. Sess.), § 3; 2023, No. 31, § 2, eff. July 1, 2023.)
§ 2243 Administration; duties and authority
The Agency of Transportation and the Secretary of Natural Resources are designated as responsible for carrying out the provisions of this subchapter and shall have the following additional responsibilities and powers:
(1) The Agency of Transportation or the Secretary of Natural Resources may make such reasonable rules as it, he, or she deems necessary, provided such rules do not conflict with any federal laws, rules, and regulations, or the provisions of this subchapter.
(2) The Agency of Transportation shall enter into agreements with the U.S. Secretary of Transportation or his or her representatives in order to designate those areas of the State that are properly zoned or used for industrial activities, and to arrange for federal cost participation.
(3) The Secretary shall adopt and enforce requirements for adequate fencing and screening of salvage yards.
(4) The Agency of Transportation may seek an injunction against a salvage yard that is in violation of the relevant provisions of this subchapter. The Secretary may enforce the relevant provisions of this chapter under 10 V.S.A. chapter 201.
(5) The Agency of Transportation or the Secretary may issue necessary orders, findings, and directives, and do all other things reasonably necessary and proper to carry out the purpose of this subchapter.
(Added 1969, No. 98, § 1; amended 1983, No. 185 (Adj. Sess.), § 3; 1993, No. 172 (Adj. Sess.), § 31; 2009, No. 56, § 6; 2017, No. 74, § 97.)
§ 2244 Periodic inspections
(a) The Secretary shall conduct an unannounced inspection of the physical operation, record-keeping practices, and regulatory compliance practices of salvage yards to ensure compliance with applicable provisions of this subchapter.
(b) As part of the inspection program, the Secretary shall annually inspect at least one facility to ensure compliance with 9 V.S.A. chapter 82.
(Added 2023, No. 31, § 3, eff. July 1, 2023.)
§ 2244 Repealed
[Repealed]
1993, No. 172 (Adj. Sess.), § 67(5).
§ 2245 Incinerators, sanitary landfills, etc., excepted
The provisions of this subchapter shall not be construed to apply to solid waste management facilities regulated under 10 V.S.A. chapter 159.
(Added 1969, No. 98, § 1; amended 1971, No. 36, § 2, eff. April 1, 1971; 2009, No. 56, § 7.)
§ 2246 Effect of local ordinances
This subchapter shall not be construed to be in derogation of zoning ordinances or ordinances for the control of salvage yards now or hereafter established within the proper exercise of the police power granted to municipalities, if those ordinances impose stricter limitations upon salvage yards. If the limitations imposed by this subchapter are stricter, this subchapter shall control.
(Added 1969, No. 98, § 1; amended 2009, No. 56, § 8.)
§ 2247 Salvage yard certificate of registration
The provisions of this subchapter shall not be construed to repeal or abrogate any other provisions of law authorizing or requiring a certificate of registration to own, establish, operate, or maintain a salvage yard, but no certificate of registration shall be issued in contravention of this subchapter, or continue in force after the date on which the salvage yard for which it is issued becomes illegal under this subchapter regardless of the term for which the certificate of registration is initially issued if the salvage yard is not satisfactorily screened.
(Added 1969, No. 98, § 1; amended 2009, No. 56, § 9.)
§ 2248 Salvage yard operational standards
(a) [Repealed.]
(b) On or before March 31, 2011, the Secretary shall adopt by rule requirements for the siting, operation, and closure of salvage yards. The rules shall establish requirements for:
(1) The siting of salvage yards, including setbacks from surface waters, wetlands, and potable water supplies. Siting requirements under this subdivision may include site-specific conditions for salvage yards operating under a valid certificate of registration under section 2242 of this title, provided that such site-specific conditions are designed to prevent releases to groundwater, discharges to surface waters, or other risks to public health and the environment. A site-specific condition under this subdivision may include the requirement that the owner or operator of a salvage yard obtain an individual certificate of registration under section 2242 of this title instead of operating under a general permit adopted by the Secretary under subsection (c) of this section.
(2) Exemptions from the requirement to obtain a certificate of registration under section 2242 of this title.
(3) When an instrument of financial responsibility may be required by the Secretary in amounts necessary to:
(A) remediate potential or existing environmental contamination caused by the salvage yard; or
(B) assure proper management of salvage materials upon closure of the salvage yard.
(4) Removal of solid waste or tires from the salvage yard for proper disposal.
(5) Establishment and maintenance of screening or fencing of salvage yards from public view.
(6) Assuring proper closure of a salvage yard facility.
(7) Postclosure environmental monitoring of a salvage yard.
(8) Classes or categories of salvage yards, including those handling total loss vehicles from insurance.
(9) Additional measures that the Secretary determines necessary for the protection of public health, safety, and the environment.
(c)(1) The Secretary may issue a general permit for a certificate of registration issued to salvage yards under section 2242 of this title. The general permit may include a provision allowing a holder of a valid certificate of registration issued under this subchapter to self-certify compliance with the applicable standards of this subchapter and rules adopted under this subchapter. A general permit issued under this section shall be adopted by rule and may be incorporated into the rule required under subsection (b) of this section.
(2) If the Secretary adopts a general permit for the regulation of salvage yards under subdivision (1) of this subsection, the Secretary may require an owner or operator of a salvage yard that is operating under the general permit or that is applying for coverage under the general permit to obtain an individual certificate of registration under section 2242 of this title if any one of the following applies:
(A) the salvage yard does not qualify for the general permit;
(B) a salvage yard operating under the general permit is in violation of the terms and conditions of the general permit;
(C) the size, scope, or nature of the activity of the salvage yard exceeds the parameters of the general permit;
(D) the owner or operator of the salvage yard has a history of noncompliance; or
(E) the salvage yard presents a potential risk to public health or the environment.
(d) No person may deliver salvage vehicles to or operate a mobile salvage vehicle crusher at a salvage yard that does not hold a certificate of registration under this subchapter. A salvage yard holding a certificate of registration under this subchapter shall post a copy of its current certificate in a clearly visible location in the proximity of each entrance to the salvage yard. Notwithstanding any other provision of law to the contrary, a salvage yard that does not hold a certificate of registration under this subchapter may operate a mobile salvage vehicle crusher with a liquids collection system, in accordance with the rules adopted under this subchapter for vehicle crushing, for the purpose of closing the salvage yard after first notifying the Secretary in writing of the intent to close the salvage yard.
(e) The requirement under subdivision (a)(2) of this section or rules adopted under this section to drain a vehicle within 365 days of receipt shall not apply to a salvage yard holding a certificate of registration under this subchapter that, as of January 1, 2010, is conducting business, the primary activity of which is the handling of total loss vehicles from insurance companies.
(Added 2009, No. 93 (Adj. Sess.), § 1; amended 2011, No. 36, § 5, eff. May 19, 2011; 2023, No. 79, § 4, eff. July 1, 2023.)
§ 2251 Application for certificate of approved location
Application for a certificate of approved location shall be made in writing to the legislative body of the municipality where the salvage yard is located or where it is proposed to be located, and, in municipalities having a zoning bylaw, subdivision regulations established under sections 4301-4498 of this title, or a municipal ordinance or rule established under sections 1971-1984 of this title, the application shall be accompanied by a certificate from the legislative body or a public body designated by the legislative body. The legislative body or its designee shall find the proposed salvage yard location is not within an established district restricted against such uses or otherwise contrary to the requirements or prohibitions of such zoning bylaw or other municipal ordinance. The application shall contain a description of the land to be included within the salvage yard, which description shall be by reference to so-called permanent boundary markers.
(Added 1969, No. 98, § 1; amended 1973, No. 164 (Adj. Sess.), § 3; 2009, No. 56, § 10.)
§ 2252 Time of hearing
A hearing on the application shall be held within the municipality not less than two or more than four weeks from the date of the receipt of the application by the legislative body. Notice of the hearing shall be given to the applicant by mail, postage prepaid, to the address given in the application and shall be published once in a newspaper having a circulation within the municipality, which publication shall be not less than seven days before the date of the hearing.
(Added 1969, No. 98, § 1.)
§ 2253 Location requirements
(a) At the time and place set for hearing, the legislative body shall hear the applicant, the owners of land abutting the facility, and all other persons wishing to be heard on the application for certificate of approval for the location of the salvage yard. The legislative body shall consider the following in determining whether to grant or deny the certificate:
(1) proof of legal ownership or the right to such use of the property by the applicant;
(2) the nature and development of surrounding property, such as the proximity of highways and State and town roads and the feasibility of screening the proposed salvage yard from such highways and State and town roads; the proximity of places of worship; schools; hospitals; existing, planned, or zoned residential areas; public buildings; or other places of public gathering; and
(3) whether or not the proposed location can be reasonably protected from affecting the public health, safety, environment, or from a nuisance condition.
(b)(1) A person shall not establish, operate, or maintain a salvage yard which is within 1,000 feet of the nearest edge of the right-of-way of the interstate or primary highway systems and visible from the main traveled way thereof at any season of the year.
(2) On or after July 1, 2009, no person shall establish or initiate operation of a new salvage yard within 100 feet of the nearest edge of the right-of-way of a State or town road or within 100 feet of a navigable water, as that term is defined in 10 V.S.A. § 1422.
(c) Notwithstanding subsection (b) of this section, salvage yards and scrap metal processing facilities may be operated within 1,000 feet of the nearest edge of the right-of-way of the interstate and primary highway system or within 100 feet of the nearest edge of the right-of-way of a State or town road, provided that the area in which the salvage yard is located is zoned industrial under authority of State law, or if not zoned industrial under authority of State law, is used for industrial activities as determined by the Board with the approval of the U.S. Secretary of Transportation.
(Added 1969, No. 98, § 1; amended 1973, No. 164 (Adj. Sess.), § 4; 2009, No. 56, § 11.)
§ 2254 Aesthetic, environmental, and community welfare considerations
At the hearing regarding location of the salvage yard, the legislative body may also take into account the clean, wholesome, and attractive environment which has been declared to be of vital importance to the continued stability and development of the tourist and recreational industry of the State and the general welfare of its citizens by considering whether or not the proposed location can be reasonably protected from having an unfavorable effect thereon. In this regard the legislative body may consider collectively the type of road servicing the salvage yard or from which the salvage yard may be seen, the natural or artificial barriers protecting the salvage yard from view, the proximity of the proposed salvage yard to established tourist and recreational areas or main access routes, thereto, proximity to neighboring residences, groundwater resources, surface waters, wetlands, drinking water supplies, consistency with an adopted town plan, as well as the reasonable availability of other suitable sites for the salvage yard.
(Added 1969, No. 98, § 1; amended 2009, No. 56, § 12.)
§ 2255 Grant or denial of application; appeal
(a) After the hearing the legislative body shall, within 30 days, make a finding as to whether or not the application should be granted, giving notice of their finding to the applicant by mail, postage prepaid, to the address given on the application.
(b) If approved, the certificate of approved location shall be issued for a period not to exceed five years and shall contain at a minimum the following conditions:
(1) conditions requiring compliance with the screening and fencing requirements of section 2257 of this title;
(2) approval shall be personal to the applicant and not assignable;
(3) conditions that the legislative body deems appropriate to ensure that considerations of section 2254 of this title have been met;
(4) any other condition that the legislative body deems appropriate to ensure the protection of public health, the environment, or safety or to ensure protection from nuisance conditions; and
(5) a condition requiring a salvage yard established or initiated prior to July 1, 2009 to be setback 100-feet from the nearest edge of a right-of-way of a State or town road or from a navigable water as that term is defined in 10 V.S.A. § 1422, provided that if a salvage yard cannot demonstrate during the application process that it meets the 100-foot setback requirement of this subdivision, a municipality may regulate the salvage yard as a nonconforming use, nonconforming structure, or nonconforming lot under a municipal nonconformity bylaw adopted under section 4412 of this title, provided that no enlargement or further encroachment within a setback required under this subdivision shall be allowed.
(c) Certificates of approval shall be renewed thereafter for successive periods of not more than five years upon payment of the renewal fee without hearing, provided all provisions of this subchapter are complied with during the preceding period, and the salvage yard does not become a public nuisance under the common law.
(d) Any person may appeal the issuance or denial of a certificate of approved location to the Environmental Division within 30 days of the decision. No costs shall be taxed against either party upon such appeal.
(Added 1969, No. 98, § 1; amended 1973, No. 164 (Adj. Sess.), § 5; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 56, § 13; 2009, No. 154 (Adj. Sess.), § 236.)
§ 2256 Certificate fees
The initial or renewal application fee is $25.00 to be paid at the time application is made. If the application is not granted, the fee shall be returned to the applicant. A municipality, in addition to the application fee, may assess the applicant with the costs of advertising such application and such other reasonable costs incident to the hearing as are clearly attributable thereto and may make the certificate of approval conditional upon payment of same.
(Added 1969, No. 98, § 1.)
§ 2257 Screening requirements; fencing
(a) A salvage yard shall be screened by a fence or vegetation which effectively screens it from public view and which complies with the rules of the Secretary relative to the screening and fencing of salvage yards, and shall have a gate which shall be closed after business hours.
(b) Fences and artificial means used for screening purposes as hereafter provided shall be maintained neatly and in good repair. They shall not be used for advertising signs or other displays which are visible from the main traveled way of a highway or State or town road.
(c) All junk stored or deposited in a salvage yard shall be kept within the enclosure, except while being transported to or from the salvage yard. All wrecking or other work on the junk shall be accomplished within the enclosure.
(d) Where the topography, natural growth of timber, or other natural barrier screens the salvage yard from view in part, the legislative body shall upon granting the certificate of approved location require the applicant to screen only those parts of the salvage yard not screened. A legislative body may inspect a salvage yard in order to determine compliance with the requirements of this chapter and a certificate of approved location issued under this chapter. A municipality may request that the Secretary initiate an enforcement action against a salvage yard for violation of the requirements of this subchapter or statute or regulation within the authority of the Secretary.
(Added 1969, No. 98, § 1; amended 1983, No. 185 (Adj. Sess.), § 4; 1993, No. 172 (Adj. Sess.), § 32; 2009, No. 56, § 14.)
§ 2261 Application
Application for a certificate of registration for a salvage yard shall be made in writing to the Secretary upon a form prescribed by the Secretary.
(Added 1969, No. 98, § 1; amended 1993, No. 172 (Adj. Sess.), § 33; 2009, No. 56, § 15.)
§ 2262 Eligibility
The Secretary shall issue a certificate of registration upon finding:
(1) The applicant is able to comply with the provisions of this subchapter.
(2) The applicant has filed a currently valid certificate of approval of location with the Secretary.
(3) The applicant has complied with any rules of the Secretary issued under section 2243 of this title and with screening or fencing requirements that, under limitations of the surrounding terrain, are capable of feasibly and effectively screening the salvage yard from view of the main traveled way of all highways.
(Added 1969, No. 98, § 1; amended 1973, No. 164 (Adj. Sess.), § 6; 1973, No. 185 (Adj. Sess.), § 5; 1993, No. 172 (Adj. Sess.), § 34; 2009, No. 56, § 16; 2017, No. 74, § 98.)
§ 2263 Repealed
[Repealed]
2009, No. 134 (Adj. Sess.), § 32(c).
§ 2264 Repealed
[Repealed]
2009, No. 56, § 17.
§ 2271 Unauthorized disposal of vehicles
No one may place, discard, or abandon a junk motor vehicle in a place where it is visible from the main traveled way of a highway nor may anyone abandon or discard any motor vehicle upon the land of another with or without the consent of the land owner. Motor vehicles so placed, discarded, or abandoned are hereby declared to be a public nuisance.
(Added 1969, No. 98, § 1.)
§ 2272 Removal of junk motor vehicles
(a) A junk motor vehicle discovered in violation of section 2271 of this title shall be removed from view of the main traveled way of the highway by the owner of the land upon which it is discovered, upon receiving written notice from the Agency of Transportation to do so, if such owner holds title to the motor vehicle.
(b) If the owner of the land upon which a junk motor vehicle is discovered in violation of section 2271 of this title does not hold or disclaims title and the true owner of the motor vehicle is known or can be ascertained, the motor vehicle owner shall dispose of such motor vehicle in such a manner that it is no longer visible from the main traveled way of the highway upon receiving written notice from the Agency of Transportation to do so.
(c) The owner of land upon which a motor vehicle is left in violation of this section or section 2271 of this title may, without incurring any civil liability or criminal penalty to the owner or lienholders of such vehicle, cause the vehicle to be removed from the place where it is discovered to any other place on any property owned by him or her, or from the property, in accordance with 23 V.S.A. § 2152. The provisions of 23 V.S.A. chapter 21, subchapter 7 (abandoned motor vehicles) shall govern the identification, reclamation, and disposal of such vehicles.
(d) [Repealed.]
(Added 1969, No. 98, § 1; amended 1973, No. 164 (Adj. Sess.), § 8; 1981, No. 87, § 4; 1983, No. 185 (Adj. Sess.), § 7; 1989, No. 39; 2003, No. 101 (Adj. Sess.), § 3; 2015, No. 50, § 24.)
§ 2273 Agency of Transportation; duties; general authority
The Agency of Transportation is authorized to contract in the name of the State for the service of independent contractors under bond to carry on at the contractor’s expense junk car collection and disposal operations. The Agency shall maintain a continuing inventory of junk cars for disposal, select areas appropriate for collection, storage, and disposal of junk motor vehicles, and have general authority to contract and do all things reasonably necessary to carry out the purposes of this subchapter. Notwithstanding any other provision of this subchapter, the Agency may petition the Superior Court of the county in which a junk motor vehicle is discovered in violation of section 2271 of this title for an order directing the owner to remove the motor vehicle from view of the main traveled way of the highway.
(Added 1969, No. 98, § 1; amended 1983, No. 185 (Adj. Sess.), § 8; 1993, No. 172 (Adj. Sess.), § 35.)
§ 2274 Construction with other statutes
In the event the provisions of this subchapter conflict with any other law relating to abandoned or unclaimed property, this subchapter controls, and its provisions shall not be construed to repeal or abrogate any other provisions of law relating to junkyards but to be in aid thereof or as an alternative.
(Added 1969, No. 98, § 1.)
§ 2281 Injunctive relief; other remedies
(a) In addition to the penalty in section 2282 of this title, the legislative body may seek a temporary restraining order, preliminary injunction, or permanent injunction against the establishment, operation, or maintenance of a salvage yard which is in violation of the relevant municipal requirements of this subchapter and may obtain compliance with the relevant municipal requirements of this subchapter and the terms of a certificate of approved location issued under this subchapter by complaint to the Environmental Division for the county in which the salvage yard is located.
(b) In addition to the penalty in section 2282 of this title, the Agency of Transportation may seek appropriate injunctive relief in the Superior Court to enforce the provisions of this subchapter within its regulatory authority.
(Added 1969, No. 98, § 1; amended 1993, No. 172 (Adj. Sess.), § 36; 2009, No. 56, § 18; 2009, No. 154 (Adj. Sess.), § 236.)
§ 2282 Penalty
A person who violates this subchapter shall be fined by the legislative body not less than $5.00 nor more than $50.00 for each day of the violation. A person who violates the requirements of this subchapter shall be fined by the Agency of Natural Resources in accordance with 10 V.S.A. chapter 201.
(Added 1969, No. 98, § 1; amended 2023, No. 79, § 13, eff. July 1, 2023.)
§ 2283 Appeals
After exhausting the right of administrative appeal to the Board under 19 V.S.A. § 5(d)(5), a person aggrieved by any order, act, or decision of the Agency of Transportation may appeal to the Superior Court, and all proceedings shall be de novo. Any person, including the Agency of Transportation, may appeal to the Supreme Court from a judgment or ruling of the Superior Court. Appeals of acts or decisions of the Secretary of Natural Resources or a legislative body of a municipality under this subchapter shall be appealed to the Environmental Division under 10 V.S.A. § 8503.
(Added 1969, No. 98, § 1; amended 1971, No. 185 (Adj. Sess.), § 199, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1993, No. 172 (Adj. Sess.), § 37; 2009, No. 56, § 19; 2009, No. 154 (Adj. Sess.), § 236.)
Subchapter 11 Miscellaneous Regulatory Powers
§ 2291 Enumeration of powers
For the purpose of promoting the public health, safety, welfare, and convenience, a town, city, or incorporated village shall have the following powers:
(1) To set off portions of public highways of the municipality for sidewalks and bicycle paths and to regulate their installation and use.
(2) To provide for the removal of snow and ice from sidewalks by the owner, occupant, or person having charge of abutting property.
(3) To provide for the location, protection, maintenance, and removal of trees, plants, and shrubs and buildings or other structures on or above public highways, sidewalks, or other property of the municipality.
(4) To regulate the operation and use of vehicles of every kind including the power to erect traffic signs and signals, to regulate the speed of vehicles subject to 23 V.S.A. chapter 13, subchapter 12, to implement traffic-calming devices, to regulate or exclude the parking of all vehicles, and to provide for waiver of the right of appearance and arraignment in court by persons charged with parking violations by payment of specified fines within a stated period of time.
(5) To establish rules for pedestrian traffic on public highways and to establish crosswalks.
(6) To regulate the location, installation, maintenance, repair, and removal of utility poles, wires and conduits, water pipes or mains, storm drains, or gas mains and sewers, upon, under, or above public highways or public property of the municipality.
(7) To regulate or prohibit the erection, size, structure, contents, and location of signs, posters, or displays on or above any public highway, sidewalk, lane, or alleyway of the municipality and to regulate the use, size, structure, contents, and location of signs on private buildings or structures.
(8) To regulate or prohibit the use or discharge, but not possession, of firearms within the municipality or specified portions thereof, provided that an ordinance adopted under this subdivision shall be consistent with section 2295 of this title and shall not prohibit, reduce, or limit discharge at any existing sport shooting range, as that term is defined in 10 V.S.A. § 5227.
(9) To license or regulate itinerant vendors, peddlers, door-to-door salesmen, and those selling goods, wares, merchandise, or services who engage in a transient or temporary business, or who sell from an automobile, truck, wagon, or other conveyance, excepting persons selling fruits, vegetables, or other farm produce.
(10) To regulate the keeping of dogs, and to provide for their licensing, leashing, muzzling, restraint, impoundment, and destruction.
(11) To regulate, license, tax, or prohibit circuses, carnivals, and menageries and all plays, concerts, entertainments, or exhibitions of any kind for which money is received.
(12) To regulate or prohibit the storage or dumping of solid waste, as defined in 10 V.S.A. § 6602. These regulations may require the separation of specified components of the waste stream.
(13) To compel the cleaning or repair of any premises that in the judgment of the legislative body is dangerous to the health or safety of the public and to establish health and safety standards for premises within the municipality in order to protect the public or prevent physical injury to other properties in the vicinity.
(14) To define what constitutes a public nuisance, and to provide procedures and take action for its abatement or removal as the public health, safety, or welfare may require.
(15) To provide for penalties for violation of any ordinance or rule adopted under the authority of this section.
(16) To name and rename streets and to number and renumber lots pursuant to section 4463 of this title and to require the owner of a house or other building to which a number has been assigned to affix the number, including the assigned 911 address, to the structure, sign, or number post so that it is clearly visible from the road.
(17) To regulate or prohibit possession of open or unsealed containers of alcoholic beverages in public places.
(18) To regulate or prohibit consumption of alcoholic beverages in public places.
(19) To regulate the construction, alteration, development, and decommissioning or dismantling of wireless telecommunications facilities and ancillary improvements where the city, town, or village has not adopted zoning or where those activities are not regulated pursuant to a duly adopted zoning bylaw. Regulations regarding the decommissioning or dismantling of telecommunications facilities and ancillary structures may include requirements that bond be posted, or other security acceptable to the legislative body, in order to finance facility decommissioning or dismantling activities. These regulations are not intended to prohibit seamless coverage of wireless telecommunications services. With respect to the construction or alteration of wireless telecommunications facilities subject to regulation granted in this section, the town, city, or incorporated village shall vest in its local regulatory authority the power to determine whether the installation of a wireless telecommunications facility, whatever its size, will impose no impact or merely a de minimis impact on the surrounding area and the overall pattern of land development, and if the local regulatory authority, originally or on appeal, determines that the facility will impose no impact or a de minimis impact, it shall issue a permit. No ordinance authorized by this section, except to the extent structured to protect historic landmarks and structures listed on the State or National Register of Historic Places, may have the purpose or effect of limiting or prohibiting a property owner’s ability to place or allow placement of antennae used to transmit, receive, or transmit and receive communications signals on that property owner’s premises if the aggregate area of the largest faces of the antennae is not more than eight square feet, and if the antennae and the mast to which they are attached do not extend more than 12 feet above the roof of that portion of the building to which they are attached.
(20) [Repealed.]
(21) To regulate, by means of a civil ordinance adopted pursuant to chapter 59 of this title, subject to the limitations of 13 V.S.A. § 351b and the requirement of 13 V.S.A. § 354(a), and consistent with the rules adopted by the Secretary of Agriculture, Food and Markets, pursuant to 13 V.S.A. § 352b(a), the welfare of animals in the municipality. Such ordinance may be enforced by humane officers as defined in 13 V.S.A. § 351, if authorized to do so by the municipality.
(22) To regulate the sale and conveyance of sewage capacity to users, including phasing provisions and other conditions based on the impact of residential, commercial, or industrial growth within a town, in accord with principles in a duly adopted town plan.
(23) Acting individually or in concert with other towns, cities, or incorporated villages and pursuant to chapter 87, subchapter 2 of this title, to incur indebtedness for or otherwise finance by any means permitted under chapter 53 of this title projects relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or to eligible energy efficiency projects undertaken by owners of real property within the boundaries of the town, city, or incorporated village. Energy efficiency projects shall be those that are eligible under section 3267 of this title.
(24) Upon the determination by a municipal building inspector, health officer, or fire marshal that a building within the boundaries of the town, city, or incorporated village is uninhabitable, to recover all expenses incident to the maintenance of the uninhabitable building with the expenses to constitute a lien on the property in the same manner and to the same extent as taxes assessed on the grand list, and all procedures and remedies for the collection of taxes shall apply to the collection of those expenses; provided, however, that the town, city, or incorporated village has adopted rules to determine the habitability of a building, including provisions for notice in accordance with 32 V.S.A. § 5252(3) to the building’s owner prior to incurring expenses and including provisions for an administrative appeals process.
[Subdivision (25) effective until January 1, 2028; see also subdivision (25) effective January 1, 2028 set out below.]
(25) To regulate by means of an ordinance or bylaw development in a flood hazard area, river corridor protection area, or other hazard area consistent with the requirements of section 4424 of this title and the National Flood Insurance Program. Such an ordinance or bylaw may regulate accessory dwelling units in flood hazard and fluvial erosion areas. However, such an ordinance or bylaw shall not require the filing of an application or the issuance of a permit or other approval by the municipality for a planting project considered to have a permit by operation of subsection 4424(c) of this title.
[Subdivision (25) effective January 1, 2028; see also subdivision (25) effective until January 1, 2028 set out above.]
(25) To regulate by means of an ordinance or bylaw development in a flood hazard area or other hazard area consistent with the requirements of section 4424 of this title and the National Flood Insurance Program. Such an ordinance or bylaw may regulate accessory dwelling units in flood hazard areas. However, such an ordinance or bylaw shall not require the filing of an application or the issuance of a permit or other approval by the municipality for a planting project considered to have a permit by operation of subsection 4424(c) of this title.
(26) To regulate parking lots and parking meters on public property or public highways of the municipality, including the power to set parking fees and use parking revenues for any municipal purpose. Projects relating to parking lots and parking meters under this subdivision shall constitute an improvement under chapter 53 of this title, and a municipality shall have the right of eminent domain to condemn land necessary for such projects subject to the restrictions set forth in section 2805 of this title and 18 V.S.A. § 5318.
(27) When a disaster or emergency has been declared by the Governor, a municipal building inspector, health officer, fire marshal, or zoning administrator may declare condemned to be destroyed a property that has been damaged in the disaster or emergency and is dangerous to life, health, or safety due to the disaster-related damage. The local legislative body may require that an official receive training on disaster-related condemnation before he or she may condemn property under this subdivision. The owner of property condemned under this subdivision may appeal the condemnation according to the condemnation appeals procedure of chapter 83 of this title, provided that any appeal to the Superior Court shall be to the Civil Division.
(28) Notwithstanding any contrary provision of sections 2291a and 4413 of this title or 30 V.S.A. chapter 5 or 89, a municipality may adopt an ordinance to establish screening requirements that shall apply to a ground-mounted plant that generates electricity from solar energy. In a proceeding under 30 V.S.A. § 248, the municipality may make recommendations to the Public Utility Commission applying the ordinance to such a plant. The ordinance may designate the municipal body to make this recommendation. Screening requirements and recommendations adopted under this subdivision shall be a condition of a certificate of public good issued for the plant under 30 V.S.A. § 248, provided that they do not prohibit or have the effect of prohibiting the installation of such a plant and do not have the effect of interfering with its intended functional use.
(A) Screening requirements under this subdivision shall not be more restrictive than screening requirements applied to commercial development in the municipality under chapter 117 of this title or, if the municipality does not have other bylaws except flood hazard, 10 V.S.A. chapter 151.
(B) In this subdivision (28), “plant” shall have the same meaning as in 30 V.S.A. § 8002 and “screening” means reasonable aesthetic mitigation measures to harmonize a facility with its surroundings and includes landscaping, vegetation, fencing, and topographic features.
(C) This subdivision (28) shall not authorize requiring a municipal permit for a solar electric generation plant. Notwithstanding any contrary provision of this title, enforcement of an ordinance adopted under this subdivision shall be pursuant to the provisions of 30 V.S.A. § 30 applicable to violations of 30 V.S.A. § 248.
(29) To regulate by means of an ordinance or bylaw the operation of short-term rentals within the municipality, provided that the ordinance or bylaw does not adversely impact the availability of long-term rental housing. As used in this subdivision, “short-term rental” means a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year.
(30) To regulate by means of an ordinance adopted pursuant to chapter 59 of this title regarding the control of livestock running at large. As used in this subdivision:
(A) “Livestock” has the same meaning as in 6 V.S.A. § 761.
(B) “Livestock running at large” means any livestock found or being on any public land or public way, or land belonging to a person other than the owner of the livestock, without the landowner’s permission.
(C) “Public way” has the same meaning as in section 2501a of this title.
(Added 1969, No. 170 (Adj. Sess.), § 9, eff. March 2, 1970; amended 1977, No. 61, § 2; 1987, No. 70, eff. June 2, 1987; 1991, No. 108, § 1; 1993, No. 211 (Adj. Sess.), § 15, eff. June 17, 1994; 1997, No. 94 (Adj. Sess.), § 2, eff. April 15, 1998; 1999, No. 82 (Adj. Sess.), § 1; 2001, No. 82 (Adj. Sess.), § 1; 2003, No. 42, § 2, eff. May 27, 2003; 2003, No. 63, § 51, eff. June 11, 2003; 2005, No. 173 (Adj. Sess.), § 3, eff. May 22, 2006; 2007, No. 79, § 14, eff. June 9, 2007; 2007, No. 121 (Adj. Sess.), § 19; 2009, No. 45, § 15g; 2009, No. 160 (Adj. Sess.), § 9, eff. June 4, 2010; 2011, No. 53, §§ 14a, 14d(2), eff. May 27, 2011; 2011, No. 138 (Adj. Sess.), § 15, eff. May 14, 2012; 2011, No. 155 (Adj. Sess.), § 8; 2013, No. 16, § 6, eff. May 6, 2013; 2013, No. 122 (Adj. Sess.), § 2; 2013, No. 162 (Adj. Sess.), § 11; 2015, No. 56, § 26e, eff. June 11, 2015; 2017, No. 4, § 3, eff. March 6, 2017; 2017, No. 74, § 99; 2017, No. 79, § 15, eff. June 14, 2017; 2019, No. 131 (Adj. Sess.), § 255; 2019, No. 179 (Adj. Sess.), § 3, eff. Oct. 12, 2020; 2021, No. 157 (Adj. Sess.), § 1, eff. July 1, 2022; 2023, No. 121 (Adj. Sess.), § 6a, eff. January 1, 2028; 2023, No. 160 (Adj. Sess.), § 10, eff. July 1, 2024; 2023, No. 171 (Adj. Sess.), § 21, eff. June 10, 2024.)
§ 2291a Renewable energy devices
Notwithstanding any provision of law to the contrary, no municipality, by ordinance, resolution, or other enactment, shall prohibit or have the effect of prohibiting the installation of solar collectors, clotheslines, or other energy devices based on renewable resources. This section shall not apply to patio railings in condominiums, cooperatives, or apartments.
(Added 2009, No. 45, § 15b, eff. May 27, 2009.)
§ 2292 Construction with other laws
The powers enumerated in this subchapter may be exercised by any town, city, or incorporated village notwithstanding and in addition to the existence of similar powers under a municipal charter or other provision of law. The validity or enforceability of an ordinance or rule adopted under section 2291 of this title shall not be affected by the existence of a statute, ordinance, or rule enacted or adopted under authority other than this subchapter, and relating to the same or a similar subject.
(Added 1969, No. 170 (Adj. Sess.), § 9, eff. March 2, 1970.)
§ 2293 Regulation of condominium conversion; referendum
A town may adopt an ordinance governing the conversion of rental units to condominiums which is supplemental to and not inconsistent with the provisions of 27 V.S.A. chapter 15, subchapter 2. Such an ordinance shall be submitted to the voters and shall be adopted if approved by a majority of those present and voting.
(Added 1985, No. 175 (Adj. Sess.), § 6.)
§ 2294 Missing person complaints and reports; filing required
All law enforcement agencies, including those of municipalities, shall develop and maintain a system for filing missing person complaints and reports forwarded to it under 20 V.S.A. chapter 112.
(Added 1985, No. 254 (Adj. Sess.), § 2, eff. June 4, 1986.)
§ 2295 Authority of municipal and county governments to regulate firearms, ammunition, hunting, fishing, and trapping
Except as otherwise provided by law, no town, city, or incorporated village, by ordinance, resolution, or other enactment, shall directly regulate hunting, fishing, and trapping or the possession, ownership, transportation, transfer, sale, purchase, carrying, licensing, or registration of traps, firearms, ammunition, or components of firearms or ammunition. This section shall not limit the powers conferred upon a town, city, or incorporated village under subdivision 2291(8) of this title. The provisions of this section shall supersede any inconsistent provisions of a municipal charter.
(Added 1987, No. 178 (Adj. Sess.), eff. May 9, 1988.)
§ 2296 Regulation of amateur radio
(a) As used in this section:
(1) “Amateur radio” means the use of amateur radio and amateur satellite radio frequencies and services by qualified and federally authorized persons of any age who are interested in radio technique without pecuniary interest.
(2) “Antenna” means an array of wires, tubing, or the like used for the transmission and reception of radio waves.
(3) “Antenna support structure” means a structure or framework that is designed to elevate an antenna above the ground for the purpose of increasing the effective communications range and reliability of an amateur radio station. Amateur radio antenna support structures are removable by design and therefore are a removable structure for assessment purposes.
(b) Notwithstanding subdivision 2291(19) of this title, a municipal ordinance regulating amateur radio antenna or amateur radio antenna support structures shall comply with the requirements of 47 C.F.R. § 97.15(b), as amended from time to time, by allowing for the erection of an amateur radio antenna or an amateur radio antenna support structure at a height and dimension sufficient to accommodate amateur radio service communications.
(Added 2005, No. 200 (Adj. Sess.), § 2.)
§ 2296a Right to recover expenses for emergency services
A municipal, county, or State entity that deploys police, fire, ambulance, rescue, or other services to aid an operator of a vehicle who is stranded due to a violation of 23 V.S.A. § 1006b, 1112, or 1434(c) or to move a vehicle that is disabled due to a violation of 23 V.S.A. § 1006b, 1112, or 1434(c) may recover in civil action the costs of providing services from the operator or the operator’s employer, provided that the operator was acting during or incidental to the operator’s scope of employment.
(Added 2021, No. 184 (Adj. Sess.), § 52, eff. July 1, 2022.)
§ 2296b Expungement of municipal violation records
(a) Expungement. Two years following the satisfaction of a judgment resulting from an adjudication of a municipal violation, the Judicial Bureau shall make an entry of “expunged” and notify the municipality of such action, provided the person has not been adjudicated for any subsequent municipal violations during that time. The data transfer to the municipality shall include the name, date of birth, ticket number, and offense. Violations of offenses adopted pursuant to chapter 117 of this title shall not be eligible for expungement under this section.
(b) Effect of expungement.
(1) Upon entry of an expungement order, the order shall be legally effective immediately and the individual whose record is expunged shall be treated in all respects as if the individual had never been adjudicated of the violation.
(2) Upon an entry of expunged, the case will be accessible only by the Clerk of the Court for the Judicial Bureau or the Clerk’s designee. Adjudications that have been expunged shall not appear in the results of any Judicial Bureau database search by name, date of birth, or any other data identifying the defendant. Except as provided in subsection (c) of this section, any documents or other records related to an expunged adjudication that are maintained outside the Judicial Bureau’s case management system shall be destroyed.
(3) Upon receiving an inquiry from any person regarding an expunged record, the Judicial Bureau and the municipality shall respond that “NO RECORD EXISTS.”
(c) Exception for research entities. Research entities that maintain adjudication records for purposes of collecting, analyzing, and disseminating criminal justice data shall not be subject to the expungement requirements established in this section. Research entities shall abide by the policies established by the Court Administrator and shall not disclose any identifying information from the records they maintain.
(d) Policies for implementation. The Court Administrator shall establish policies for implementing this section.
(e) Application. This section shall apply to municipal violations that occur on and after July 1, 2025.
(Added 2025, No. 60, § 3, eff. July 1, 2025.)
Subchapter 12 Solid Waste Ordinances
§ 2297 Definitions
As used in this subchapter,
(1) “Solid waste ordinance” means an ordinance adopted pursuant to subdivision 2291(12) of this title.
(2) “Legislative body” means the legislative body of a town, city, or incorporated village.
(3) “Respondent” means a person alleged to have violated a solid waste ordinance.
(Added 1991, No. 108, § 2.)
§ 2297a Enforcement of solid waste ordinance by town, city, or incorporated village
(a) Solid waste order. A legislative body may issue and enforce a solid waste order in accordance with this section. A solid waste order may include a directive that the respondent take actions necessary to achieve compliance with the ordinance, to abate hazards created as a result of noncompliance, or to restore the environment to the condition existing before the violation and may include a civil penalty of not more than $800.00 for each violation and in the case of a continuing violation, not more than $100.00 for each succeeding day. In determining the amount of civil penalty to be ordered, the legislative body shall consider the following:
(1) the degree of actual or potential impact on public health, safety, welfare, and the environment resulting from the violation;
(2) whether the respondent has cured the violation;
(3) the presence of mitigating circumstances;
(4) whether the respondent knew or had reason to know the violation existed;
(5) the respondent’s record of compliance;
(6) the economic benefit gained from the violation;
(7) the deterrent effect of the penalty;
(8) the costs of enforcement;
(9) the length of time the violation has existed.
(b) Notice. When the legislative body has reasonable grounds to believe that a person has violated a solid waste ordinance, the legislative body may issue notice of the alleged violation, which shall be delivered to the respondent in person or mailed to the respondent by first-class mail or by certified mail, return receipt requested. If mailed by first-class mail, the notice is deemed received three days after the date of mailing. A copy of the notice of violation shall be mailed to the Department of Environmental Conservation for information purposes only. The notice of violation shall include:
(1) a brief description of the alleged violation and identification of the ordinance alleged to have been violated;
(2) a brief description of the potential enforcement actions which may be taken by the legislative body and the legislative body’s probable course of action;
(3) a statement that the respondent has a right to a preliminary hearing before the legislative body and a description of the procedures for requesting a preliminary hearing.
(c) Preliminary hearing. A person who receives a notice of violation shall be offered an opportunity for a preliminary hearing before the legislative body for the purpose of determining whether a violation exists and reviewing the legislative body’s probable course of action. The request for hearing shall be made in writing to the clerk of the town, city, or incorporated village no later than ten days after the date the notice of violation is received. The legislative body shall hold a hearing within 14 days of receipt of the request for a hearing.
(d) Proposed order. After a preliminary hearing, the legislative body may issue a proposed order. If no hearing is requested within ten days after the date of receipt of the notice of violation, the legislative body may issue a proposed order at once. A proposed order shall be delivered to the respondent in person or mailed to the respondent by first-class mail or by certified mail, return receipt requested. If mailed by first-class mail, the order is deemed received three days after the date of mailing.
(e) Contents of proposed order. A proposed order shall include:
(1) a statement that the respondent has the right to request a hearing before the legislative body on the proposed order and the procedures for requesting the hearing;
(2) a statement that the respondent has the right to request a hearing before the Environmental Division after the order has become final and a description of the procedures for requesting a hearing before the Environmental Division;
(3) a statement that filing a request for hearing before the Environmental Division will stop penalties from accruing in the case of a continuing violation;
(4) if applicable, a directive that the respondent take actions necessary to achieve compliance with the ordinance, to abate hazards created as a result of noncompliance, or to restore the environment to the condition existing before the violation;
(5) if applicable, a civil penalty of not more than $800.00 for each violation and in the case of a continuing violation, not more than $100.00 for each succeeding day.
(f) Hearing on proposed order. A person who receives a proposed order shall be offered an opportunity for a hearing before the legislative body, provided that the request for hearing is made in writing to the clerk of the town, city, or incorporated village no later than 15 days after the date of receipt of the order. If the respondent does not request a hearing, the order shall be deemed a final order, and shall be effective on the date of receipt or a later date stated in the order. If the respondent does request a hearing subsequent to receipt of the order, the legislative body shall hold a hearing within 14 days of receipt of the request. After the hearing, the legislative body may withdraw or amend the order and may issue a final order, which shall be delivered or mailed to the respondent in the same manner as proposed orders and which shall be effective on the date of receipt or a later date stated in the order.
(g) Continuing violations. Each day that a violation continues from the effective date of a final order shall constitute a separate violation. However, the filing of a request for hearing with the Environmental Division shall stop penalties from accruing in the case of a continuing violation until the Environmental Division has issued its order.
(h) Effect of imposition of penalty. Imposition of a penalty under this subchapter precludes imposition by the town, city, or incorporated village of any other administrative or civil penalty under any other provision of law for the same violation.
(i) Payment to town, city, or incorporated village. All penalties collected under this subchapter shall be paid to the town, city, or incorporated village whose ordinance is the subject of the violation.
(j) Enforcement. The legislative body may seek enforcement of a final order in the Superior Court or before the Environmental Division. If a penalty is imposed and the respondent fails to pay the penalty within the time prescribed, the legislative body may bring a collection action in the Superior Court.
(Added 1991, No. 108, § 2; amended 1993, No. 232 (Adj. Sess.), § 38, eff. March 15, 1995; 2009, No. 154 (Adj. Sess.), § 236; 2017, No. 130 (Adj. Sess.), § 16.)
§ 2297b Hearing by Environmental Division
(a) A respondent may request a hearing on a final order under this subchapter before the Environmental Division established under 4 V.S.A. chapter 27, which shall consider the matter de novo. Notice of a request for hearing shall be filed with the Environmental Division and the municipal clerk within ten days of receipt of the final order.
(b) Notice of a request for hearing before the Environmental Division shall stay the order and payment of the penalty, if imposed, pending the hearing.
(c) If the Environmental Division determines that a violation has not occurred, it shall reverse the order.
(d) The Environmental Division may affirm a directive in an order or, if it finds that the violation exists but the remedies contained in the order are not likely to achieve the intended result, it may modify or vacate and remand the directive.
(e) In determining whether to affirm, modify, or reverse an order for a civil penalty, the Environmental Division shall consider the factors set forth in subsection 2297a(a) of this title.
(f) If the respondent does not request a hearing on a final order within ten days of receipt of the order, the final order shall stand.
(Added 1991, No. 108, § 2; amended 1993, No. 232 (Adj. Sess.), § 38, eff. March 15, 1995; 2009, No. 154 (Adj. Sess.), § 236.)
Subchapter 13 Condemnation; Solid Waste Management Districts
§ 2299a Eminent domain; solid waste management districts
(a) A solid waste management district organized pursuant to chapter 121 of this title or by charter, may acquire property, or some easement or other rights in property, in order to construct and operate a sanitary landfill including suitable buffer areas and transfer stations and other solid waste facilities located on the landfill site, by condemnation as provided in this subchapter.
(b) A solid waste management district may condemn only property, easements or rights in property lying within the boundary of the district at any time after June 28, 1991. However, withdrawal of a municipality from membership in the district before November 1, 1991 shall terminate condemnation proceedings with respect to property, easements, and interests in property lying within that municipality.
(c) This subchapter may not be used to condemn property, easements, or other rights in property at solid waste management facilities actually operated by any person at any time during the three years before a petition is filed under this subchapter under either transitional authorizations issued on or before August 1, 1987 or interim, provisional, or final certifications issued by the Agency of Natural Resources.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299b Definitions
As used in this subchapter,
(1) “Necessity” means a reasonable need which considers the greatest public good and the least inconvenience and expense to the condemning party and to the property owner. Necessity shall not be measured merely by expense or convenience to the condemning party. Due consideration shall be given to the adequacy of other property and locations and to the quantity, kind, and extent of cultivated and agricultural land which may be taken or rendered unfit for use by the proposed taking. In this matter, the court shall view the problem from both a long-range agricultural land use viewpoint as well as from the immediate taking of agricultural lands which may be involved. The court shall also consider and give effect to the policy of protecting earth resources, as set forth in 10 V.S.A. § 6086. Consideration also shall be given to the effect upon home and homestead rights and the convenience of the owner of the land, to the effect of the facility upon scenic and recreational values, and to the effect upon town grand lists and revenues.
(2) Damages resulting from the taking or use of property under the provisions of this subchapter shall be the value for the most reasonable use of the property or right in the property, and of the business on the property, and the direct and proximate decrease in the value of the remaining property or right in the property and the business on the property. The added value, if any, to the remaining property or right in the property, which accrues directly to the owner of the property as a result of the taking or use, as distinguished from the general public benefit, shall be considered in the determination of damages.
(3) “Interested person” or “person interested in lands” means a person who has a legal interest of record in the property affected.
(4) “Legislative body” means the board of supervisors, board of commissioners, or other governing board of a solid waste management district.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299c Determination by legislative body of district
(a) No solid waste management district shall exercise the authority conferred on it by this subchapter until after the legislative body of the district has voted at a regular or special meeting warned for that purpose to adopt a resolution setting forth the necessity for the taking and the compensation to be paid.
(b) A public hearing shall be held for the purpose of receiving suggestions and recommendations from the public prior to the legislative body’s reaching the judgment required in subsection (a) of this section. The hearing shall be conducted by the legislative body. Public notice shall be given by printing the official notice not less than 30 days prior to the hearing in a newspaper having general circulation in the area affected. A copy of the notice shall be mailed to the legislative body of the municipalities affected and a copy sent by certified mail to known owners of lands and rights in land proposed to be condemned. The notice shall set forth the purpose for which the land or rights are desired. At the hearing the legislative body shall hear and consider all objections, suggestions for changes, and recommendations made by any person interested.
(c) If the legislative body determines the necessity of the taking and the compensation to be paid, it shall cause the property to be acquired or affected to be surveyed.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299d Petition; notice of hearing
(a) After completion of the survey, the solid waste management district intending to acquire property or property rights shall present a petition to the Superior Court of the county in which the property lies, describing the property or rights, and stating why it is unable to acquire it without condemnation, and why its acquisition is necessary. The Superior Court shall set a time and place for hearing such petitions, which shall not be more than 60 nor less than 40 days from the date its order is signed, and shall issue a citation.
(b) The citation shall be served like a summons upon each person having any legal interest in the property or right, including each municipality and each municipal planning commission where the property is situated, or on absent persons in such manner as the Supreme Court may, by rule, provide for service of process in civil actions. The Superior Court may schedule a joint hearing of some or all petitions relating to the same project and concerning properties or rights located in the same town or abutting towns within the same county.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299e Finding of necessity; appeal
(a) At the time and place appointed for the hearing, the court shall hear all persons interested and wishing to be heard. If any person owning or having an interest in the property to be taken or affected objects to the necessity of the proposed taking, the court shall require the petitioner to proceed with the introduction of evidence as to the necessity of the taking. The burden of proof shall be upon the petitioner to establish necessity by a fair preponderance of the evidence. No presumptions shall attend the petitioner’s determination of necessity.
(b) The court by its order may determine whether necessity requires the taking of the land and rights as set forth in the petition. The court shall make findings of fact and file them and any party may appeal the court’s order regarding necessity to the Supreme Court.
(Added 1991, No. 109, § 1, June 28, 1991.)
§ 2299f Determination of damages; jury trial
(a) If any person with an interest in the property or right is dissatisfied with the compensation determined by the legislative body of the solid waste management district, the person may, within 30 days after any court order regarding necessity has become final, apply by petition in writing to the Superior Court of the county within which such property or right or part thereof is situated to have the amount of compensation reassessed and the time and manner of payment redetermined. Such petition shall be served and returned like a summons.
(b) Either party may request and have a trial by jury on the issue of compensation only.
(c) The Superior Court shall determine damages as of the date the property is acquired or at such other date as the court determines.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299g Compensation; where party cannot be found
When a person to whom such compensation or any part of that compensation is due cannot be found, or is under any legal disability, or is out of this State, the Superior Court may order such amount to be deposited with the county clerk of the county in which the hearing was held. This money shall be invested and paid out according to orders made by the court.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299h Copy of order; record
When the Superior Court renders judgment, it shall send by registered mail to each of the parties in interest or their attorneys, within 30 days, a certified copy of that judgment. Within 30 days after the Superior Court’s judgment has become final, the petitioner shall cause a certified copy of the judgment to be recorded in the clerk’s office of the town or towns in which the property is located.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299i Effect of payment of awards
After resolution of any appeals on the issue of necessity and upon the payment or deposit of the compensation determined by the legislative body of the solid waste management district, with interest, in accordance with its determination, the district shall be the owner of the property or right described in the findings. However, when an appeal is taken on the issue of compensation only, ownership shall be an equitable title only with right of possession until there is compliance with the judgment of the Superior Court.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299j Access for examination of land
Solid waste management districts organized pursuant to chapter 121 of this title, or by charter, after making reasonable effort to provide notice, may enter on any lands and premises for the purpose of making surveys and conducting hydrogeological studies, including subsurface investigations, and other scientific studies and, in the event entry is denied or resisted, they may obtain an order for this purpose from any Superior Court of a county in which the property is located. Orders issued under this section shall specify when solid waste management districts may enter land or premises, the manner and timing of notice they shall give before any such entry, the allowed duration of any entry, and a suitable payment for entry, if any. Solid waste management districts shall be liable for damage done as a result of their entry on lands or premises.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
§ 2299k Scope of civil rules
The Vermont Rules of Civil Procedure shall apply to proceedings under this subchapter, except that neither party is entitled to a trial by jury on the issue of necessity.
(Added 1991, No. 109, § 1, eff. June 28, 1991.)
Chapter 63 Fairs and Exhibits
§ 2301 Appropriations
A municipality may appropriate not to exceed two and one-half percent of its grand list to aid an agricultural fair or other public exhibition intended to promote the interests of any branch of agriculture, mechanic arts, or any of the liberal arts. No such appropriation shall be used so to enable any incorporated fair association to pay dividends on its capital stock.
Chapter 65 Public Lands and Funds
Subchapter 1 Public Lands
§ 2401 Public lands; duties of selectboard
The selectboard shall have the care of lands in the town granted under the authority of the British Government as glebes for the use of the Church of England and now by law granted to such town for the use of schools, and lands granted to the use of the ministry or the social worship of God, and lands granted to the first settled minister, and not appropriated according to law.
§ 2402 State policy
(a) Agency of Transportation funded, designed, or funded and designed projects shall seek to increase and encourage more pedestrian, bicycle, and public transit trips, with the State goal to promote intermodal access to the maximum extent feasible, which will help the State meet the transportation-related recommendations outlined in the Comprehensive Energy Plan (CEP) issued under 30 V.S.A. § 202b and the recommendations of the Vermont Climate Action Plan (CAP) issued under 10 V.S.A. § 592.
(b) Except in the case of projects or project components involving unpaved highways, for all transportation projects and project phases managed by the Agency or a municipality, including planning, development, construction, or maintenance, it is the policy of this State for the Agency and municipalities, as applicable, to incorporate complete streets principles that:
(1) serve individuals of all ages and abilities, including vulnerable users as defined in 23 V.S.A. § 4(81);
(2) follow state-of-the-practice design guidance;
(3) are sensitive to the surrounding community, including current and planned buildings, parks, and trails and current and expected transportation needs; and
(4) when desired by the municipality or specifically identified in the regional plan, implement street design for purposes of calming and slowing traffic in State-designated centers under 24 V.S.A. chapter 76A.
(Amended 2023, No. 148 (Adj. Sess.), § 32, eff. July 1, 2024.)
§ 2403 Lease
The selectboard may lease such lands as they deem beneficial, reserving rents for the same, which shall be annually paid into the treasury of the town.
§§ 2404, 2405 Repealed
[Repealed]
2011, No. 155 (Adj. Sess.), § 12.
§ 2406 Conveyance of leaseholds; trust funds
(a) Educational, ecclesiastical, or municipal corporations may convey by deed the fee simple in lands the title to or use of which is held by such corporations under State or colonial grant for purposes defined in such grants. Such conveyance may be made to the owner and holder of leasehold rights in such land if such lands are then held under lease, but shall not be made to other than such holders of leasehold interests except subject to such leasehold interest, if any, or simultaneously with the extinguishment thereof.
(b) Such lands may be condemned in accordance with and in the manner provided by law.
(c) The funds received in consideration of such conveyance or awarded such corporations as damages in condemnation proceedings shall be kept intact, in trust, by such corporations as endowment funds, and the income only shall be used for the purposes for which such lands were originally granted.
(d) Such lands as may be sold, conveyed, or condemned as provided in this section shall thereafter be subject to taxation as are other lands.
§ 2407 Repealed
[Repealed]
1985, No. 196 (Adj. Sess.), § 18.
§ 2408 Exceptions
Any land acquired by virtue of the provisions of section 2407 of this title shall be deemed a municipal forest. A town which has such forest on the effective date of section 2407 of this title, or acquires one hereunder, shall be deemed to have complied with the provisions of such section.
§ 2409 Retention of municipal ownership of lease lands
(a) As used in this section:
(1) “Legislative body” means the officer or officers of a municipal corporation who are charged with the care of the municipal corporation’s lease lands.
(2) “Lessee” means the person entitled to possess, enjoy, and use land subject to a perpetual lease and shall include the person’s heirs, executors, administrators, and assigns.
(3) “Municipal corporation” shall have the same meaning as “municipality” in 1 V.S.A. § 126 and shall also include every municipal corporation identified in subdivision 1751(1) of this title, county grammar schools, any unorganized towns and gores in the State, and any of the unified towns and gores of Essex County. “Municipal corporation” shall not include the University of Vermont and State Agricultural College.
(4) “Perpetual lease” means any leasehold interest in Vermont land, and every estate in Vermont land other than fee simple absolute, the title to which is held by a municipal corporation according to section 2401 of this title, arising out of or created by an instrument of lease that conveys to a person designated as lessee the right to possess, enjoy, and use the land in perpetuity or substantially in perpetuity. “Perpetual lease” shall include leasehold interests that are subject to restrictions on the lessee’s use of the land and shall include lands that the municipal corporation may repossess for nonpayment of rent or other default under the terms of the lease.
(5) “Perpetual lease land” means all land described in a perpetual lease that is owned by or vested in a municipal corporation. “Perpetual lease land” does not include land described in a perpetual lease that is held in title by any person other than a municipal corporation, or any land described in a perpetual lease over which the municipal corporation acts exclusively as trustee.
(b)(1) On January 1, 2020, fee simple title to perpetual lease lands shall vest in the current lessee of record, free and clear of the interest of a municipal corporation in the perpetual lease lands held in accordance with section 2401 of this title, unless prior to that date the legislative body of the municipal corporation votes in the affirmative to retain ownership of some or all of the perpetual lease lands within that municipal corporation.
(2) At any time, the legislative body of a municipal corporation may vote to relinquish its interest in some or all of the perpetual lease lands within that municipal corporation held in accordance with section 2401 of this title. Upon such a vote, fee simple title to perpetual lease lands shall vest in the current lessee of record.
(3) When fee simple title to perpetual lease land vests in the current lessee of record pursuant to this subsection, the land shall remain subject to any other encumbrances of record, including municipal encumbrances and easements.
(c) Nothing in this section shall prevent a municipal corporation that has retained its interest in perpetual lease land held in accordance with section 2401 of this title from later conveying the land in accordance with section 2406 of this title.
(Added 2017, No. 152 (Adj. Sess.), § 1.)
Subchapter 2 Public Funds
§ 2431 Trustees of public funds
Real and personal estate, except U.S. public money, held by a town in trust for any purpose, including cemetery trust funds, unless the person giving the same otherwise directs, shall be under the charge and management of three trustees, elected by the town when the town so votes. At the meeting when such trustees are first elected, they shall be elected for the following terms: one for one year, one for two years, and one for three years. Their successors shall be elected for the term of three years, but a person chosen to fill a vacancy caused by death, resignation, or otherwise shall serve only for the remainder of the unexpired term.
§ 2432 Powers and duties; investments
(a)(1) The trustees shall apply estate income to the purpose for which it is held, and deeds or contracts made by them shall be in the name of the town.
(2) The trustees may:
(A) lease, sell, or convey real estate so held and invest the funds received therefrom; and
(B) lend estate money at annual or semiannual interest, and as security for each loan shall take deeds or mortgages of real estate in this State.
(b) The trustees may invest in:
(1) any security, including a revenue obligation, issued, insured, or guaranteed by the United States;
(2) municipal bonds or other bonds that are rated at the time of the transaction by a nationally recognized statistical rating organization, as defined in 15 U.S.C. § 78c(a)(62) as may be amended, in one of its four highest categories;
(3) repurchase agreements or debt securities of any federally insured financial institution as defined in 8 V.S.A. § 11101(32);
(4) the shares of an investment company, or an investment trust, such as a mutual fund, closed-end fund, or unit investment trust, that is registered under the federal Investment Company Act of 1940, as amended, if the mutual investment fund has been in operation for at least five years and has net assets of at least $100,000,000.00; or
(5) deposits in federally insured financial institutions as defined in 8 V.S.A. § 11101(32).
(c)(1) The trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds have been invested, as well as the proceeds of the investments.
(2) The trustees are encouraged to invest in financial institutions operating in the State and in investments within the State that will result in reinvestment in Vermont.
(3) The provisions of this section as to future investments shall not require the liquidation or disposition of securities legally acquired and held.
(4) If the municipality has adopted an investment policy, the trustees shall invest in accordance with the provisions of the municipal policy that do not conflict with this section.
(d) The trustees may delegate management and investment of funds under their charge to the extent that is prudent under the terms of the trust or endowment, and in accordance with section 3415 (delegation of management and investment functions) of the Uniform Prudent Management of Institutional Funds Act, 14 V.S.A. chapter 120. Notwithstanding the limitations on investments set forth in subsection (b) of this section, an agent exercising a delegated management or investment function, if investing, shall invest the funds in a publicly traded security that is:
(1) registered with the Securities and Exchange Commission pursuant to 15 U.S.C. § 78l and listed on a national securities exchange;
(2) issued by an investment company registered pursuant to 15 U.S.C. § 80a-8;
(3) a corporate bond registered as an offering with the Securities and Exchange Commission pursuant to 15 U.S.C. § 78l and issued by an entity whose stock is a publicly traded security;
(4) a municipal security;
(5) a deposit in federally insured financial institutions as defined in 8 V.S.A. § 11101(32); or
(6) a security issued, insured, or guaranteed by the United States.
(Amended 2003, No. 150 (Adj. Sess.), § 8; 2017, No. 123 (Adj. Sess.), § 1, eff. May 3, 2018.)
§ 2433 Bonds; actions
The trustees shall have crime insurance coverage or give bonds to the satisfaction of the selectboard, conditioned for the faithful performance of their duties. In the name of the town, they may prosecute and defend a suit or action for the recovery or protection of the estate entrusted to their care.
(Amended 2021, No. 179 (Adj. Sess.), § 25, eff. July 1, 2022.)
§ 2434 Report
The trustees shall report to the annual town meeting the amount of the funds in their hands, the manner and condition of its investment, and the disposal of the income thereof. If any part of such fund is school money, such trustees shall make like report to the State Board of Education.
Chapter 67 Parks and Shade Trees
§ 2501 Laying out parks
(a) A fifth or 50 or more of the freeholders of a town, desiring to have a public park or a public square laid in such town for the erection of a soldiers’ monument or for other public purpose, may apply by petition in writing to the selectboard of the town requesting them to lay out such park or square.
(b) The selectboard shall thereupon examine the premises and appoint a time and place for hearing parties interested, and shall proceed in setting out land, awarding damages, and in all other particulars, as in laying out a highway upon petition of three freeholders.
(c) Persons aggrieved by the action of the selectboard shall have the same remedies as are provided for persons aggrieved by the action of selectboard in the laying out of a highway.
§ 2501a Definitions
As used in this chapter:
(1) “Public place” means municipal property, including a municipal park, a recreation area, or a municipal building. “Public place” shall not include any municipal forestland or property that is subject to any ownership interest held by the Agency of Transportation.
(2) “Public way” means a right-of-way held by a municipality, including a town highway.
(3) “Shade tree” means a shade or ornamental tree located in whole or in part within the limits of a public way or public place, provided that the tree:
(A) was planted by the municipality; or
(B) is designated as a shade tree pursuant to a municipal shade tree preservation plan pursuant to section 2502 of this title.
(Added 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2502 Tree wardens and preservation of shade trees
(a) The tree warden shall control all shade trees within the municipality.
(b) The tree warden and the legislative body of the municipality may adopt a shade tree preservation plan. The plan shall:
(1) describe any program for the planting of new trees and shrubs;
(2) provide for the maintenance of shade trees through feeding, pruning, and protection from noxious insect and disease pests;
(3) determine the apportionment of costs for tree warden services provided to other municipal corporations;
(4) determine whether tree maintenance or removal on specific municipal property shall require the approval of another municipal officer or legislative body; and
(5) determine the process, not inconsistent with this chapter, for the removal of:
(A) diseased, dying, or dead shade trees; and
(B) any shade trees that create a hazard to public safety, impact a disease or insect control program, or must be removed to comply with State or federal law or permitting requirements.
(c) The shade tree preservation plan may:
(1) map locations or zones within the municipality where all trees in whole or in part within a public way or place shall be designated as shade trees; and
(2) designate as a shade tree any tree in whole or in part within a public way, provided that the tree warden and legislative body of the municipality find that the tree is critical to the cultural, historical, or aesthetic character of the municipality.
(d) The tree warden and legislative body of the municipality shall hold a minimum of one public hearing concerning the shade tree preservation plan for the purpose of soliciting public input. The legislative body shall publish the proposed plan 10 days prior to the public hearing.
(e) For the purpose of promoting the public health, safety, welfare, and convenience, a municipality shall have authority to adopt an ordinance that is not inconsistent with this chapter for the administration of the shade tree preservation plan and the regulation of shade trees. The tree ordinance shall be adopted pursuant to chapter 59 of this title.
(Amended 1969, No. 238 (Adj. Sess.), § 1; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2503 Appropriations
A municipality may appropriate a sum of money to be expended by the tree warden, mayor, aldermen, selectboard, or trustees for the purpose of carrying out this chapter.
(Amended 1969, No. 238 (Adj. Sess.), § 2; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2504 Removal of shade trees; exception
(a) The tree warden may remove or cause to be removed from the public ways or places any trees that are infested with or infected by a tree pest or that constitute a public hazard. The notice and hearing requirements of section 2509 of this chapter shall not apply to the removal of infested or infected trees.
(b) The tree warden may determine that an owner or lessee of abutting property has sufficiently controlled all insect pests or tree diseases upon the trees within the limits of a public way or place abutting the property and may determine that it is not necessary to remove the trees.
(Amended 1969, No. 238 (Adj. Sess.), § 3; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2505 Deputy tree wardens
The legislative body of the municipality may appoint deputy tree wardens who shall serve under the direction of the tree warden and shall have the same duties and authority as the tree warden. The legislative body of the municipality may dismiss a deputy tree warden at its pleasure.
(Amended 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2506 Regulations for protection of shade trees
A tree warden shall enforce all laws relating to shade trees and may propose to the legislative body of the municipality the rules, ordinances, or regulations for the planting, protection, care, or removal of public shade trees as he or she deems expedient. The legislative body of the municipality may adopt the rules, ordinances, or regulations pursuant to the provisions of chapter 59 of this title.
(Amended 1969, No. 238 (Adj. Sess.), § 4; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2507 Cooperation
With consent of the legislative body of the municipality, the tree warden may:
(1) enter into financial or other agreements with the owners of land adjoining or facing public ways and places for the purpose of encouraging and effecting the shade tree preservation plan;
(2) enter into agreements with other municipal corporations to provide tree warden services or training; and
(3) cooperate with federal, State, county, or other municipal governments, agencies, or other public or private organizations or individuals and may accept on behalf of the municipality any funds, equipment, supplies, or services from organizations and individuals, or others, as deemed appropriate for use in carrying out the purposes of this chapter.
(Amended 1969, No. 238 (Adj. Sess.), § 5; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2508 Cutting shade trees prohibited
Except as otherwise provided in 19 V.S.A. chapter 9, a shade tree shall not be cut or removed, in whole or in part, except by a tree warden or his or her deputy or by a person having the written permission of a tree warden.
(Amended 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2509 Cutting shade trees; notice and hearing
(a) The tree warden shall post public notice of the intent to cut or remove a shade tree. The notice shall be posted a minimum of 15 days prior to cutting or removing the tree. If the cutting or removal is appealed pursuant to subsection (c) of this section, the legislative body of the municipality shall hold a public hearing. This subsection shall not apply to the cutting or removal of a shade tree or trees that:
(1) are infested with or infected by, or at risk to become infested with or infected by, a tree pest and are located in an infestation area designated by the Agency of Agriculture, Food and Markets and Department of Forests, Parks and Recreation;
(2) are a hazard to public safety; or
(3) must be removed for the municipality to comply with State or federal law or permitting requirements.
(b)(1) The tree warden shall post public notice of the intent to cut or remove a shade tree or group of shade trees pursuant to subsection (a) of this section in at least two conspicuous locations within the municipality. The tree warden shall post the public notice in or near the office of the clerk of the municipality.
(2) When the shade tree or group of shade trees are located on property held in fee by another, the municipality shall notify each abutting landowner at the landowner’s address of record.
(c)(1) Within 15 days after the posting of public notice, a resident or landowner may appeal in writing to the legislative body of the municipality to object to the cutting or removal of a shade tree. The legislative body of the municipality shall give notice of the appeal to the tree warden.
(2) Within 10 business days after receipt of an appeal, the legislative body of the municipality shall hold a public hearing with the tree warden to receive public comment on the proposed cutting or removal of the shade tree. The tree warden shall stay action on the proposed removal until the legislative body of the municipality renders a final decision on the appeal.
(d) In all cases, the decision of the legislative body of the municipality shall be final.
(Amended 1969, No. 238 (Adj. Sess.), § 6; 2017, No. 74, § 100; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2510 Penalty
(a) Whoever shall willfully mar or deface a shade tree without the written permission of a tree warden or legislative body of the municipality shall be fined not more than $50.00 for the use of the municipality.
(b) Any person who willfully and critically injures or cuts down a shade tree without written permission of the tree warden or the legislative body of the municipality shall be fined pursuant to 13 V.S.A. § 3602 for each tree so injured or cut, for the use of the municipality.
(Amended 1969, No. 238 (Adj. Sess.), § 7; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2511 Control of infestations
When an insect or disease pest infestation upon or in shade or private trees threatens other public or private trees, is considered detrimental to a municipal shade tree preservation program, or threatens the public safety, the tree warden may request surveys and recommendations for control action from the Secretary of Agriculture, Food and Markets or Commissioner of Forests, Parks and Recreation in accordance with 6 V.S.A. chapter 84.
(Amended 1969, No. 238 (Adj. Sess.), § 8; 2003, No. 42, § 2, eff. May 27, 2003; 2019, No. 171 (Adj. Sess.), § 2, eff. Nov. 1, 2020.)
§ 2512 Repealed
[Repealed]
1969, No. 238 (Adj. Sess.), § 9.
Chapter 69 Health Services
§ 2601 Aid to hospitals
At any legal meeting thereof, a town or incorporated village may appropriate such sums of money as it deems necessary for the erection, equipment, or support of any nonsectarian hospital established within the county where such town is located, or in an adjoining county, or in an adjoining county in another state.
§ 2602 Free hospital beds
A town may appropriate such sums of money, not exceeding $700.00, for a free hospital bed or beds for a period of not less than one year and may appropriate such sum of money, not exceeding $5,000.00, for the permanent endowment of a free hospital bed or beds, as such town or city deems advisable, for the use of the inhabitants of such municipality as are entitled to receive assistance by reason of their indigent circumstances.
§ 2603 Contract with hospital
The treasurer of a municipality making an appropriation, as provided in section 2602 of this title, may make a contract with such hospital concerning the admission of patients thereto. The rate, rules, and regulations governing such admission shall be approved by the selectboard of such town or the city council of such city before a payment is made to such hospital.
§ 2604 Joint action by municipalities
A municipality may appropriate a sum of money to secure a licensed physician or a registered nurse, or both, or provide ambulance service, and may join with adjacent municipalities in providing these services.
(Amended 1967, No. 327 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 2605 Physician’s residence—Purchase
Municipalities, separately or by compact, may purchase and maintain a residence for a physician, and may contract with the physician for his or her occupancy on a lease-purchase option basis, upon approval of the question and the money therefor, by vote at a regular or special meeting, duly warned for that purpose.
(1967, No. 152, § 1, eff. April 15, 1967.)
§ 2606 Physician’s residence; financing
Municipalities and compacts may borrow the money so voted upon notes signed by the treasurer of the municipality or compact.
(Added 1967, No. 152, § 2, eff. April 15, 1967; amended 2017, No. 74, § 101.)
§ 2607 Appropriation for traveling nurse
Towns, incorporated villages, and incorporated school districts may appropriate a sum for the purpose of employing a registered nurse within such municipality or may join with other adjoining municipalities in employing a registered nurse. The provisions of this section shall not apply to municipal corporations whose charters make provisions for the employment of school, district, or traveling nurses.
§ 2608 Appropriations for hospitals; cities may make
When the charter of a city provides that a board or body, other than the legal voters in city meeting assembled, may assess taxes and appropriate money, such board or body may assess taxes and appropriate such sums of money as it deems necessary for the support of a nonsectarian hospital established in such city and incorporated and existing under and by virtue of the laws of the State.
Chapter 71 Ambulance Services
Subchapter 1 Emergency Medical Services Districts
§ 2651 Definitions
As used in this chapter:
(1) “Advanced emergency medical treatment” means those portions of emergency medical treatment as defined by the Department of Health, which may be performed by licensed emergency medical services personnel acting under the supervision of a physician within a system of medical control approved by the Department of Health.
(2) “Ambulance” means any vehicle, whether air, ground, or water, that is designed, constructed, used, or intended for use in transporting ill or injured persons.
(3) “Ambulance service” means a person licensed by the Department of Health to provide emergency medical treatment and transportation to ill or injured persons.
(4) “Basic emergency medical treatment” means those portions of emergency medical treatment, as defined by the Department of Health, which may be exercised by licensed emergency medical services personnel acting under their own authority.
(5) “District board” means the board of directors of a district appointed under section 2653 of this title.
(6) “Emergency medical personnel” means persons, including volunteers, licensed by the Department of Health to provide emergency medical treatment on behalf of an affiliated agency whose primary function is the provision of emergency medical treatment. The term does not include duly licensed or registered physicians, dentists, nurses, or physician assistants when practicing in their customary work setting.
(7) “Emergency medical services” means an integrated system of personnel, equipment, communication, and services to provide emergency medical treatment.
(8) “Emergency medical services district” means a political subdivision established to facilitate the provision of pre-hospital emergency medical treatment within a given area.
(9) “Emergency medical treatment” means pre-hospital, in-hospital, and interhospital medical treatment rendered by emergency medical personnel given to individuals who have experienced sudden illness or injury in order to prevent loss of life, the aggravation of the illness or injury, or to alleviate suffering. Emergency medical treatment includes basic emergency medical treatment and advanced emergency medical treatment.
(10) “First responder service” means a person licensed by the Department of Health to provide emergency medical treatment.
(11) “Medical control” means the entire system of quality assurance and medical accountability for basic and advanced emergency medical treatment as prescribed by this chapter. “Prehospital medical control” shall include direction and advice given to emergency medical personnel by a physician or a person acting under the direct supervision of a physician provided through:
(A) off-line medical control functions or direction of emergency medical personnel through use of protocols, review of cases, and determination of outcomes, and through training programs; and
(B) on-line medical control functions, via radio or telephone, of field personnel at the site of the emergency and en route to a hospital emergency department.
(12) “Medical facilities” means a hospital providing emergency services to an emergency medical services district.
(13) “Person” means any person, firm, partnership, association, corporation, municipality, or political subdivision, including emergency medical services districts as provided for in this subchapter.
(14) [Repealed.]
(15) “Volunteer personnel” means persons who are licensed by the Department of Health to provide emergency medical treatment on behalf of an affiliated agency without expectation of remuneration for the treatment rendered other than nominal payments and reimbursement for expenses, and who do not depend in any significant way on the provision of such treatment for their livelihood.
(16) “Affiliated agency” means an ambulance service or first responder service licensed under this chapter, including a fire department, rescue squad, police department, ski patrol, hospital, or other entity licensed to provide emergency medical services under this chapter.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 1; 2011, No. 155 (Adj. Sess.), § 40; 2013, No. 96 (Adj. Sess.), § 151; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2652 Creation of districts
The Department of Health may divide the State into emergency medical services districts, the number, size, and boundaries of which shall be determined by the Department in the interest of affording adequate and efficient emergency medical services throughout the State.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 2; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2653 Appointment of directors
(a) Each emergency medical services district shall have a board of directors, composed of a representative of each of the medical facilities, ambulance services, and first responder services operating within the district, to serve for a term of two years each or until their successors are selected. The affected medical facility, ambulance service, or first responder service may appoint a director to fill any vacancy on the board of directors for the balance of an unexpired term.
(b) The board of directors of an emergency medical services district may adopt bylaws which may contain provisions for the regulation and management of the affairs of the district. The bylaws may provide for creation of committees, including an executive committee, each consisting of two or more directors. An executive committee shall have and exercise all the authority of the board in the manner authorized by the resolution creating such committee.
(c) Representatives shall be chosen by each medical facility, ambulance service, and first responder service before March 1 of each odd-numbered year. Each medical facility, ambulance service, and first responder service shall certify the name of its representative to the Commissioner of Health.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1969, No. 179 (Adj. Sess.), § 1; 1983, No. 226 (Adj. Sess.), § 3.)
§ 2654 Repealed
[Repealed]
2021, No. 15, § 9(2).
§ 2655 Meetings of directors; election of officers
(a) The board of directors shall hold an annual meeting on or before May 1 in each year, at which a chair, a clerk, and a treasurer shall be elected by the board to serve until the next annual meeting. A vice chair may be elected if the directors so vote. The chair and any vice chair shall be elected from members of the board, but the clerk and treasurer may be elected by the board from the general membership of the emergency medical services district, in which case they shall not be entitled to vote as directors. The directors shall also meet at such other times as they deem advisable.
(b) Each district clerk shall cause to be recorded in the office of the Secretary of State the names of the elected district officers.
(c) Meetings shall be called by the clerk on request of the chair or any two directors. However, in the event that no annual meeting is held on or before March 1 in any year, such a meeting may be called by any director. Five days’ written notice of all meetings shall be given to each director, unless waived in writing.
(d) A majority of the directors shall constitute a quorum for the transaction of business at any meeting.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1969, No. 179 (Adj. Sess.), § 2; 1983, No. 226 (Adj. Sess.), § 5.)
§ 2656 Duties and powers of officers and directors
(a) The board of directors shall have full power to manage, control, and supervise the conduct of the district and to exercise in the name of the district all powers and functions belonging to the district, subject to such laws or rules as may be applicable.
(b) The chair of the board of directors shall preside at meetings of directors, and shall perform such other duties as the directors may delegate to him or her.
(c) The treasurer shall have the custody of all monies belonging to the district and shall keep accurate and complete books of account. Prior to assuming his or her duties, the treasurer shall execute a bond in favor of the district, conditioned on the faithful performance of his or her duties, in such sum and with such sureties as the directors approve.
(d) The clerk shall keep minutes of meetings of directors and of the district, and shall record all votes.
(e) The vice chair, if one is elected, shall perform the duties of the chair in the chair’s absence.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2657 Purposes and powers of emergency medical services districts
(a) It shall be the function of each emergency medical services district to foster and coordinate emergency medical services within the district, in the interest of affording adequate ambulance services within the district. Each emergency medical services district shall have powers that include the power to:
(1) buy, acquire, or lease fixtures and equipment related to district activities;
(2) apply for, receive, and accept gifts, bequests, grants-in-aid; State, federal, and local aid; and other forms of financial assistance;
(3) enter into agreements and contracts for furnishing technical, educational, and support services related to the provision of emergency medical treatment;
(4) appoint and employ agents and employees;
(5) impose and collect reasonable charges or fees for its services;
(6) monitor the provision of emergency medical services within the district and make recommendations to the Department of Health regarding licensure, relicensure, and removal or suspension of licensure for ambulance vehicles, ambulance services, and first responder services;
(7) develop, in conjunction with municipal officials, response plans for the provision of emergency medical treatment and transportation by ambulance services and first responder services within the district;
(8) sponsor or approve programs of education approved by the Department of Health which lead to the licensure of emergency medical services personnel;
(9) establish medical control within the district with physicians and representatives of medical facilities, including written protocols with the appropriate officials of receiving hospitals defining their operational procedures;
(10) assist the Department of Health in a program of testing for licensure of emergency medical services personnel;
(11) [Repealed.]
(12) develop protocols for providing appropriate response times to requests for emergency medical services.
(b) Two or more contiguous emergency medical services districts by a majority vote of the district board in each of the districts concerned may change the mutual boundaries of their emergency medical services districts. The district boards shall report all changes in district boundaries to the Department of Health.
(c) Property delivered to an ambulance service or first responder service by an emergency medical services district shall remain the property of the district, unless otherwise agreed in writing. Any equipment purchased with federal funds will be managed in accordance with federal guidelines.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1969, No. 207 (Adj. Sess.), § 9, eff. March 24, 1970; 1983, No. 226 (Adj. Sess.), § 6; 2011, No. 155 (Adj. Sess.), § 41; 2019, No. 100 (Adj. Sess.), § 1, eff. May 14, 2020; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
Subchapter 2 Licensing Operation of Affiliated Agencies
§ 2681 License required; ambulance license requirement
(a) A person furnishing ambulance services or first responder services shall obtain a license to furnish services under this subchapter.
(b)(1) In order to obtain and maintain a license, an ambulance service shall be required to provide its services in a manner that does not discriminate on the basis of income, funding source, or severity of health needs, in order to ensure access to ambulance services within the licensee’s service area.
(2) The Department of Health shall adopt rules in accordance with the provisions of subdivision (1) of this subsection.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 7; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2682 Powers of the Department of Health
(a) The Department of Health shall administer this subchapter and shall have power to:
(1) Issue licenses for ambulance services and first responder services under this subchapter.
(2) Revoke or suspend upon due notice and opportunity for hearing the license of any person who violates or fails to comply with any provision of this subchapter, or any rule or requirement adopted under its authority.
(3) Make, adopt, amend, and revise, as it deems necessary or expedient, reasonable rules in order to promote and protect the health, safety, and welfare of members of the public using, served by, or in need of emergency medical treatment. Any rule may be repealed within 90 days of the date of its adoption by a majority vote of all the district boards. Such rules may cover or relate to:
(A) age, training, and physical requirements for emergency medical services personnel;
(B) design and equipping of ambulances;
(C) cooperation with hospitals and organizations in other related fields, and participation in central communications procedures; and
(D) any other matters properly within the purposes of this chapter.
(b) No fee or other payment shall be required of an applicant for a license.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 8; 2011, No. 155 (Adj. Sess.), § 42; 2019, No. 100 (Adj. Sess.), § 1, eff. May 14, 2020; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2683 Term of license
Full licenses shall be issued on forms to be prescribed by the Department of Health for a period of three years beginning on January 1 or for the balance of any such three-year period. Temporary, conditional, or provisional licenses may also be issued by the Department.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 9; 2019, No. 100 (Adj. Sess.), § 1, eff. May 14, 2020; 2019, No. 166 (Adj. Sess.), § 27, eff. Oct. 1, 2020.)
§ 2684 Penalty
A person who violates this subchapter shall be subject to a civil fine of not more than $200.00.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 10.)
§ 2685 Liability for cost of services
A person who receives emergency medical treatment from an ambulance or first responder service or transportation by an ambulance service shall be liable in contract to the person providing such services for the reasonable and necessary cost of the services, whether or not he or she has agreed or consented to such liability.
(Added 1969, No. 112, § 1, eff. April 22, 1969; amended 1983, No. 226 (Adj. Sess.), § 11.)
§ 2686 False requests for ambulance service or first responder service
A person shall be guilty of a misdemeanor if he or she requests ambulance or first responder service from a person or organization engaged in providing such service without actual need for such service, knowing that the request is false or baseless. A person who violates this section shall be fined not more than $200.00 or imprisoned not more than 30 days, or both.
(Added 1969, No. 179 (Adj. Sess.), § 3, eff. July 1, 1970; amended 1983, No. 226 (Adj. Sess.), § 12.)
§ 2687 Civil liability limited
Volunteer personnel, whether or not they receive or expect to receive nominal payments and reimbursement for expenses, who render emergency medical treatment shall:
(1) be afforded the protection of 12 V.S.A. § 519;
(2) not be considered practitioners of the healing arts for purposes of 12 V.S.A. § 519(b); and
(3) not be liable for civil damages for rendering emergency medical treatment unless their actions constitute gross negligence or willful misconduct.
(Added 1983, No. 226 (Adj. Sess.), § 13.)
§ 2688 Armed forces
The provisions of this chapter shall not apply to the U.S. Armed Forces or the Vermont National Guard or their respective personnel while serving in such capacity.
(Added 1983, No. 226 (Adj. Sess.), § 14.)
§ 2689 Reimbursement for ambulance service providers
(a)(1) When an ambulance service provides emergency medical treatment to a person who is insured by a health insurance policy, plan, or contract that provides benefits for emergency medical treatment, the health insurer shall reimburse the ambulance service directly, subject to the terms and conditions of the health insurance policy, plan, or contract.
(2) The Department of Financial Regulation shall enforce the provisions of this subsection.
(b) Nothing in this section shall be construed to interfere with coordination of benefits or to require a health insurer to provide coverage for services not otherwise covered under the insured’s policy, plan, or contract.
(c) Nothing in this section shall preclude an insurer from negotiating with and subsequently entering into a contract with a nonparticipating ambulance service to establish rates of reimbursement for emergency medical treatment.
(d) Reimbursement for ambulance services provided to Medicaid beneficiaries shall be in accordance with 33 V.S.A. § 1901m.
(Added 2011, No. 150 (Adj. Sess.), § 5; amended 2019, No. 100 (Adj. Sess.), § 1, eff. May 14, 2020; 2023, No. 157 (Adj. Sess.), § 4, eff. June 6, 2024.)
Chapter 73 Social Services for Town Residents
§ 2691 Aid to social services for town residents
At a meeting duly warned for that purpose, a town or incorporated village may appropriate such sums of money as it deems necessary for the support of social service programs and facilities within that town for its residents. Social service programs, for which a town or incorporated village may appropriate sums of money, include: transportation, nutrition, medical, child care, and other rehabilitative services for persons with low incomes, elders, children, persons with disabilities, persons with a substance use disorder, and persons requiring employment to eliminate their need for public assistance. The authority herein granted is not in derogation of other local powers to allocate funds.
(Added 1973, No. 177 (Adj. Sess.), § 2; amended 2005, No. 174 (Adj. Sess.), § 56; 2013, No. 96 (Adj. Sess.), § 152.)
§ 2692 Contract with service provider
The legislative body of a municipality making an appropriation, as provided in section 2691 of this title, may make a contract with public or private agencies or persons concerning the provision of those certain social services.
(Added 1973, No. 177 (Adj. Sess.), § 2.)
§ 2693 Joint action by municipalities
A municipality may secure the provision of social services jointly with adjacent municipalities if such joint action is warranted to provide more effective and efficient social services for its residents.
(Added 1973, No. 177 (Adj. Sess.), § 2.)
§ 2694 Establishment of homes
A town may build, purchase, or lease home to provide housing for elders or persons entitled to receive aid and assistance under this title. It may purchase land and appropriate funds for those purposes.
(Amended 1967, No. 147, § 42a, eff. Oct. 1, 1968; 2013, No. 96 (Adj. Sess.), § 153.)
§ 2695 Administration of home
In town meeting, a town which provides such home may appoint proper officers for the government of such home, and make necessary rules and regulations for governing such persons as are admitted thereto.
(Amended 1967, No. 147, § 42b, eff. Oct. 1, 1968.)
§ 2696 Associated town home
Any number of towns may unite for the purpose of supporting a town home. For this purpose, they may enter into an agreement under chapter 121 of this title.
(Amended 1967, No. 147, § 42c, eff. Oct. 1, 1968; 2017, No. 74, § 102.)
Chapter 75 Economic Development
Subchapter 1 Building for Industrial Use [repealed]
§§ 2701-2714 Repealed
[Repealed]
1969, No. 220 (Adj. Sess.), § 20, eff. March 31, 1970.
Subchapter 1A Issuance of Revenue Bonds for Industrial Facilities [repealed]
§§ 2721-2737 Repealed
[Repealed]
1973, No. 197 (Adj. Sess.), § 3.
Subchapter 2 Aid to Business; Publicity
§ 2741 Municipal corporations; property values fixed by contract
(a) A municipal corporation, as hereinafter provided, may enter into a contract with owners, lessees, bailees, or operators of agricultural, forestland, open space land, industrial or commercial real and personal property, and alternate-energy generating plants for the purpose of:
(1) fixing and maintaining the valuation of such property in the grand list;
(2) fixing and maintaining the rate or rates of tax applicable to such property;
(3) fixing the amount in money which shall be paid as an annual tax upon such property; or
(4) fixing the tax applicable to such property at a percentage of the annual tax.
(b) A municipal corporation, by vote of a majority of those present and voting at an annual or special meeting warned for that purpose for a contract relating to agricultural or forest property, open space land, or to alternate-energy generating plants, or by a vote of two-thirds of those present and voting at annual or special meeting warned for that purpose for a contract relating to commercial or industrial property, may either:
(1) provide general authority to its legislative branch to enter into such contracts as application is made; or
(2) provide limited authority to its legislative branch to negotiate contracts, which shall be effective upon ratification by a majority of those present and voting at an annual or special meeting warned for that purpose.
(c) Any contract entered into pursuant to this section:
(1) shall not be for a period in excess of ten years except for a contract to stabilize taxes for an alternate-energy generating plant, in which case the term shall not exceed the term of any license, permit, or other approval required to operate such a plant;
(2) shall be filed with the clerk of the municipal corporation and shall be available for public inspection;
(3) may be with existing or new owners, lessees, bailees, or operators of such property, or with persons who intend to become owners, lessees, bailees, or operators of such property; and
(4) may be applicable to existing agricultural or forest property or open space land; renovations of or additions to existing agricultural, commercial, or industrial property, or open space land; or to new agricultural, forest, commercial, or industrial property, or open space land.
(d) For purposes of this section:
(1) “Renewable energy source” means any inexhaustible, continuous, or readily replaceable supply of energy, including solar, wind, hydroelectric, and geothermal. “Renewable energy source” does not mean any biomass, fossil, or mineral supply of energy, including wood, organic waste, oil, coal, or uranium.
(2) “Alternate-energy generating plant” means real and personal property that is built at an existing or new site after July 1, 1980, including any equipment, structure, or facility, used for or directly related to the generation or production of electricity from renewable energy sources with a nameplate capacity of not more than 25 million watts.
(3) “Farmland” means real estate, exclusive of any housesite, which is actively and exclusively devoted to farming and is operated or leased as a farm enterprise by the owner.
(4) “Forestland” means any land, exclusive of any housesite, which is under active forest management for the purpose of growing and harvesting repeated forest crops.
(5) “Housesite” means the two acres of land surrounding any house, mobile home, or dwelling.
(6) “Open space land” means any land, exclusive of any housesite, that does not fall under the definition of “farmland” and “forestland,” is not used for commercial or industrial purposes, and does not have structures thereon.
(Amended 1961, No. 16; 1967, No. 359 (Adj. Sess.), eff. March 26, 1968; 1969, No. 16, § 6, eff. March 11, 1969; 1973, No. 183 (Adj. Sess.), § 1, eff. March 30, 1974; 1977, No. 105, § 26; 1979, No. 170 (Adj. Sess.), § 1; 1993, No. 104, §§ 1-4, eff. June 21, 1993.)
§ 2742 Contracts between municipalities; airports
Two or more municipal corporations, acting through the legislative bodies thereof, may enter into contracts for the same period and for the same purposes as specified in section 2741 of this title, provided that the authority conferred herewith shall apply only to airport property situated in one or more municipalities and owned or held by one or more other municipalities. The authority granted herewith may be exercised notwithstanding that some or all of said property may be exempt from taxation by other provisions of law, and in the event that such contract is entered into, no municipal officer shall refuse payment of any obligation thereunder on the ground of such exemption.
(1959, No. 208, eff. May 29, 1959.)
§ 2743 Aid to public utilities
A town may appropriate a sum of money not exceeding 15 percent of its grand list in any one year for the relief of railroads and other public utilities serving the inhabitants of such town.
§ 2744 Publicity fund
A town or incorporated village may appropriate such sums of money as it deems necessary for the purpose of advertising the scenic beauties and municipal advantages of such town or incorporated village and its environs. A town may also appropriate such sums of money as it deems necessary to any area development association covering an area wherein such town is situated, whether such association is incorporated within the State of Vermont or elsewhere or whether such association is incorporated or not; and whether or not such association is also to serve towns or cities outside of the State of Vermont. Any sum so appropriated shall be expended at the order or orders of the legislative body.
(Amended 1963, No. 148, eff. June 13, 1963.)
Subchapter 3 Regional Development
§§ 2771-2778 Repealed
[Repealed]
1967, No. 334 (Adj. Sess.), § 2, eff. March 23, 1968.
§ 2779 Interstate development region; purpose; region; State aid
(a) It is also the purpose of this act to assist the local communities and regions within the State, and those communities and regions combined with communities or regions of a neighboring state, in carrying out an overall economic development program ensuring the best possible implementation of approved plans for the full development of physical and human resources of the individual communities within the region.
(b) A region is also five or more municipalities within the State or combined with a neighboring state approved by the State Central Planning Office as a logical region to undertake a comprehensive regional planning program in compliance with the overall State comprehensive plan prepared by the Central Planning Office.
(c) In the case of an interstate regional development commission, the financial assistance from the State shall be restricted to 50 per cent of the assessment of annual operating expenses of the cooperating Vermont municipalities.
(1967, No. 99, § 3, eff. April 13, 1967.)
Chapter 76 Economic Development Performance Grants
§ 2780 Repealed
[Repealed]
2009, No. 146 (Adj. Sess.), § G3.
§ 2781 Definitions
For the purposes of this chapter:
(1) “Regional development corporation” means a nonprofit corporation organized in this State whose principal purpose is to promote, organize, or accomplish economic development, including providing planning and resource development services to local communities, supporting existing industry, assisting the growth and development of new and existing small businesses, and attracting industry or commerce to a particular economic region of the State;
(2) “Regional planning commission” means a regional planning commission operating under subchapters 3 and 4 of chapter 117 of this title;
(3) “Secretary” means the Secretary of the Agency of Commerce and Community Development.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 1; 1983, No. 39, § 1; 1989, No. 21, § 2; 1995, No. 190 (Adj. Sess.), § 1(a).)
§ 2782 Proposals for performance grants for economic development
(a) The Secretary shall negotiate and issue performance grants to qualified regional development corporations, regional planning commissions, or both in the case of a joint proposal, to provide economic development services under this chapter.
(b) A proposal shall be submitted in response to a request for proposals issued by the Secretary.
(c) The Secretary may require that a service provider submit with a proposal, or subsequent to the filing of a proposal, additional supportive data or information that he or she considers necessary to make a decision to award or to assess the effectiveness of a performance grant.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 2; 1985, No. 62, § 1; 1989, No. 21, § 3; 2009, No. 146 (Adj. Sess.), § G3; 2015, No. 157 (Adj. Sess.), § C.1, eff. July 1, 2017.)
§ 2783 Eligibility for performance grants
Upon receipt of a proposal for a performance grant, the Secretary shall within 60 days determine whether or not the service provider may be awarded a performance grant under this chapter. The Secretary shall enter into a performance grant with a service provider if the Secretary finds:
(1) the service provider serves an economic region generally consistent with one or more of the State’s regional planning commission regions;
(2) the service provider demonstrates the ability and willingness to provide planning and resource development services to local communities and to assist communities in evaluating economic conditions and prepare for economic growth and stability;
(3) the service provider demonstrates an ability to gather economic and demographic information concerning the area served;
(4) the service provider has, or demonstrates it will be able to secure, letters of support from the legislative bodies of the affected municipalities;
(5) the service provider demonstrates a capability and willingness to assist existing business and industry, to encourage the development and growth of small business, and to attract industry and commerce;
(6) the service provider appears to be the best qualified service provider from the region to accomplish and promote economic development;
(7) the service provider needs the performance grant and that the performance grant will be used for the employment of professional persons or expenses consistent with performance grant provisions, or both;
(8) the service provider presents an operating budget and has adequate funds available to match the performance grant;
(9) the service provider demonstrates a willingness to involve the public of the region in its policy-making process by offering membership to representatives of all municipalities in the economic region which shall elect the directors of the governing board;
(10) the service provider demonstrates a willingness to coordinate its activities with the planning functions of any regional planning commission located in the same geographic area as the service provider.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 3; 1983, No. 39, § 2; 1989, No. 21, § 4; 1995, No. 46, § 30; 2009, No. 146 (Adj. Sess.), § G3; 2015, No. 157 (Adj. Sess.), § C.1, eff. July 1, 2017.)
§ 2784 Terms of performance grants
(a)(1) Funds available through a performance grant may only be used by an applicant to perform the duties or provide the services specified in the performance grant.
(2) The amount and terms of the performance grant shall be determined by the Secretary.
(b) A performance grant shall be made for a period specified by the grant.
(c) Payments to a service provider shall be made pursuant to the terms of the performance grant.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 4; 1983, No. 195 (Adj. Sess.), § 5(b); 1985, No. 62, § 2; 1985, No. 172 (Adj. Sess.), § 8; 1989, No. 21, § 5; 1995, No. 46, § 31; 2009, No. 146 (Adj. Sess.), § G3; 2015, No. 157 (Adj. Sess.), § C.1, eff. July 1, 2017.)
§ 2784a Plans
A service provider awarded a performance grant under this chapter shall conduct its activities under subdivision 2784(a)(1) of this title consistent with local and regional plans.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 5; 2009, No. 146 (Adj. Sess.), § G3; 2015, No. 157 (Adj. Sess.), § C.1, eff. July 1, 2017.)
§ 2785 Rules
The Secretary may issue rules necessary to carry out his or her duties and the purposes of this chapter under the provisions of 3 V.S.A. chapter 25.
(Added 1977, No. 112, § 1; amended 2009, No. 146 (Adj. Sess.), § G3.)
§ 2786 Applicability of State laws
(a) A service provider awarded a performance grant by the Secretary under this chapter shall be subject to 1 V.S.A. chapter 5, subchapter 2 (open meetings) and 1 V.S.A. chapter 5, subchapter 3 (public records), except that in addition to any limitation provided in subchapter 2 or 3:
(1) no person shall disclose any information relating to a proposed transaction or agreement between the service provider and another person, in furtherance of the service provider’s public purposes under the law, prior to final execution of such transaction or agreement; and
(2) meetings of the service provider’s board to consider such proposed transactions or agreements may be held in executive session under 1 V.S.A. § 313.
(b) Nothing in this section shall be construed to limit the exchange of information between or among regional development corporations or regional planning commissions concerning any activity of the corporations and the commissions, provided that such information shall be subject to the provisions of subsection (a) of this section.
(c) The provisions of 2 V.S.A. chapter 11 (registration of lobbyists) shall apply to regional development corporations and regional planning commissions.
(Added 1977, No. 112, § 1; amended 1979, No. 165 (Adj. Sess.), § 6; 1987, No. 256 (Adj. Sess.), § 6; 1995, No. 46, § 32; 2009, No. 146 (Adj. Sess.), § G3; 2015, No. 157 (Adj. Sess.), § C.1, eff. July 1, 2017.)
§ 2787 Economic development strategy; deference to regional plans; CEDS
In the event a major employer in an economic region announces a closure, relocation, or other significant action that will impact directly and indirectly jobs or wages in the region, and a regional planning commission has adopted a regional plan pursuant to section 4348 of this title or a Comprehensive Economic Development Strategy (CEDS) approved by the U.S. Economic Development Administration, or both, and the plan or CEDS, or both, includes mitigation strategies to address substantial local and regional economic and fiscal challenges related to that employer, including closure, relocation, or reduction in workforce, then:
(1) the Executive Branch shall defer to the regional plan and CEDS when using or distributing funds or other resources meant to mitigate anticipated local and regional economic and fiscal challenges, or shall provide the regional planning commission for the region with its basis for not deferring to the plan and the CEDS; and
(2) the Executive Branch shall involve the regional planning commission and regional development corporation for the region in decisions regarding the use or distribution of those funds or resources.
(Added 2015, No. 51, § F.1, eff. June 3, 2015.)
Chapter 76A Historic Downtown Development [Repealed effective July 1, 2034]
§ 2790 Legislative policy and purpose [Repealed effective July 1, 2034]
(a) The General Assembly finds that:
(1) Economically strong downtowns are critical to the health and well-being of Vermont’s communities and that downtowns are the natural location for both small businesses and other uses that together constitute the diverse fabric of communities that define Vermont’s quality of life.
(2) Vermont’s distinctive character of historic downtowns and villages surrounded by working landscapes is recognized worldwide. This character defines Vermont’s image, economy, and sense of place as well as its community spirit and identity, which are enjoyed by residents and visitors alike. This distinctive character is among our most valuable assets, and investing in its health is a critical component of the State’s overall economic well-being. The General Assembly recognizes the particular importance of Vermont’s downtowns as historic regional centers providing services and amenities to nonresidents and further recognizes their need for targeted support in avoiding continued loss of commercial and residential land use to the surrounding area.
(3) Investments made to revitalize the State’s historic downtowns and village centers, to encourage pedestrian-oriented development within and around the commercial core, and to build upon the State’s traditional settlement patterns support statewide goals concerning energy conservation, the efficient use of transportation and other public infrastructure and services, the protection of the working landscape, and the promotion of healthy lifestyles.
(4) Strategies, programs, and investments that advance smart growth principles today will result in the long-term fiscal, economic, cultural, and environmental viability of the State.
(b) It is therefore the intent of the General Assembly to:
(1) support historic downtowns and villages by providing funding, training, and resources to communities designated under this chapter, to revitalize such communities, to increase and diversify economic development activities, to improve the efficient use of public investments, including water and sewer systems, and to safeguard working landscapes;
(2) improve the ability of Vermont’s historic downtowns and villages to attract residents and businesses by enhancing their livability and unique sense of place; by expanding access to employment, housing, education and schools, services, public facilities, and other basic needs; and by expanding businesses’ access to markets;
(3) coordinate policies and leverage funding to support historic downtowns and villages by removing barriers to collaboration among local downtown organizations, municipal departments, local businesses, and local nonprofit organizations and increasing accountability and effectiveness at all levels of government to revitalize communities and plan for future growth;
(4) promote healthy, safe, and walkable downtown and village neighborhoods for people of all ages and incomes by increasing investments in those locations; providing energy efficient housing that is closer to jobs, services, health care, stores, entertainment, and schools; and reducing the combined cost of housing and transportation;
(5) encourage investment in mixed use development and provide for diverse housing options within walking distance of historic downtowns and villages that reinforce Vermont’s traditional settlement patterns and meet the needs of community members of all social and economic groups;
(6) develop safe, reliable, and economical transportation options in historic downtowns and villages to decrease household transportation costs, promote energy independence, improve air quality, reduce greenhouse gas emissions, and promote public health; and
(7) reflect Vermont’s traditional settlement patterns, and to minimize or avoid strip development or other unplanned development throughout the countryside on quality farmland or important natural and cultural landscapes.
(c) [Repealed.]
(d) The General Assembly finds that Vermont’s communities face challenges as they seek to accommodate growth and development while supporting the economic vitality of the State’s downtowns, village centers, and new town centers and maintaining the rural character and working landscape of the surrounding countryside. While it is the intention of the General Assembly to give the highest priority to facilitating development and growth in downtowns and village centers whenever feasible, when that is not feasible, the General Assembly further finds that:
(1) A large percentage of future growth should occur within duly designated growth centers that have been planned by municipalities in accordance with smart growth principles and Vermont’s planning and development goals pursuant to section 4302 of this title.
(2) Designated growth centers, if properly located and scaled, will serve to support the State’s downtowns, village centers, and new town centers by encouraging new residential neighborhoods and compatible civic, commercial, and industrial uses to locate within proximity to historic community centers.
(3) Designated growth centers will provide a cost-effective means of allocating and targeting limited municipal and State resources to those areas specifically planned to accommodate and support concentrated development and a large percentage of future growth.
(4) Designated growth centers will provide a mechanism for concentrating private investment in those areas targeted for growth and development through public investments and incentives, and by establishing a process that will effectively reduce cost and delay in the permitting and approval of development.
(5) Designated growth centers will accomplish these goals if they are economically viable, they are appropriately planned to accommodate future growth needs and a mix of uses, they originate at the municipal or regional level, and they are recognized by the State under State planning, financing, and permitting programs.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2005, No. 183 (Adj. Sess.), § 1, 2013, No. 59, § 1; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2790 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2005, No. 183 (Adj. Sess.), § 1, 2013, No. 59, § 1; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2791 Definitions [Repealed effective July 1, 2034]
As used in this chapter:
(1) “Community reinvestment agreement” means an agreement among municipal government officials, business leaders, and community groups pursuant to subdivision 2793(b)(2) of this title.
(2) “Design review district” means a district created pursuant to subdivision 4414(1)(E) of this title.
(3) “Downtown” means the traditional central business district of a community that has served as the focus of socio-economic interaction in the community, characterized by a cohesive core of commercial and mixed use buildings, some of which may contain mixed use spaces, often interspersed with civic, religious, residential, and industrial buildings and public spaces, typically arranged along a main street and intersecting side streets that are within walking distance for residents who live within and surrounding the core and that are served by public infrastructure such as sidewalks and public transit. Downtowns are typically larger in scale than village centers and are characterized by a development pattern that is consistent with smart growth principles.
(4) “Downtown development district” or “downtown district” means a district delineated by the municipality and designated by the Downtown Development Board under section 2793 of this title.
(5) “Local downtown organization” means either a nonprofit corporation, including a nonprofit corporation established by the Vermont Economic Development Authority, or a board, council, or commission created by the legislative body of the municipality, whose primary purpose is to administer and implement the community reinvestment agreement and other matters regarding the revitalization of the downtown district under subdivision 2793(b)(2) of this title.
(6) “Historic district” means a district created pursuant to subdivision 4414(1)(F) of this title.
(7) “Certified historic structure” means a certified historic structure as defined in the Internal Revenue Code, 26 U.S.C. § 47(c).
(8) “Special assessment” means a tax assessment pursuant to chapter 87 of this title or a municipal charter, among all commercial owners, or a significant portion thereof, within a downtown development district to impose an incremental tax assessment above the amount otherwise assessed, for the purposes of supporting downtown interests.
(9) “Tax stabilization agreement” means a contract executed pursuant to either section 2741 of this title or 32 V.S.A. § 5404a to provide a stable and predictable tax rate or assessment on properties in a downtown development district.
(10) “Village center” means the core of a traditional settlement, typically comprised of a cohesive mix of residential, civic, religious, commercial, and mixed use buildings arranged along a main street and intersecting streets that are within walking distance for residents who live within and surrounding the core. Industrial uses may be found within or immediately adjacent to these centers. Village centers are typically smaller in scale than downtowns and are characterized by a development pattern that is consistent with smart growth principles.
(11) “New town center” means the area planned for or developing as a community’s central business district, composed of compact, pedestrian-friendly, multistory, and mixed use development that is characteristic of a traditional downtown, supported by planned or existing urban infrastructure, including curbed streets with sidewalks and on-street parking, stormwater treatment, sanitary sewers, and public water supply.
(12) “Growth center” shall have the same meaning as under section 2793c of this title.
(13) “Smart growth principles” means growth that:
(A) Maintains the historic development pattern of compact village and urban centers separated by rural countryside.
(B) Develops compact mixed-use centers at a scale appropriate for the community and the region.
(C) Enables choice in modes of transportation.
(D) Protects the State’s important environmental, natural, and historic features, including natural areas, water quality, scenic resources, and historic sites and districts.
(E) Serves to strengthen agricultural and forest industries and minimizes conflicts of development with these industries.
(F) Balances growth with the availability of economic and efficient public utilities and services.
(G) Supports a diversity of viable businesses in downtowns and villages.
(H) Provides for housing that meets the needs of a diversity of social and income groups in each community.
(I) Reflects a settlement pattern that, at full build-out, is not characterized by:
(i) scattered development located outside compact urban and village centers that is excessively land consumptive;
(ii) development that limits transportation options, especially for pedestrians;
(iii) the fragmentation of farmland and forestland;
(iv) development that is not serviced by municipal infrastructure or that requires the extension of municipal infrastructure across undeveloped lands in a manner that would extend service to lands located outside compact village and urban centers;
(v) linear development along well-traveled roads and highways that lacks depth, as measured from the highway.
(14) “Important natural resources” means headwaters, streams, shorelines, floodways, rare and irreplaceable natural areas, necessary wildlife habitat, wetlands, endangered species, productive forestlands, and primary agricultural soils, all of which are as defined in 10 V.S.A. chapter 151.
(15) [Repealed.]
(16) “Neighborhood planning area” shall have the same meaning as under section 2793e of this title.
(17) “Neighborhood development area” shall have the same meaning as under section 2793e of this title.
(18) “Department” means the Vermont Department of Housing and Community Development.
(19) “District coordinator” means a district environmental coordinator attached to a District Commission established under 10 V.S.A. chapter 151.
(20) “Infill” means the use of vacant land or property within a built-up area for further construction or development.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), § 1, eff. May 28, 2002; 2003, No. 115 (Adj. Sess.), § 78, eff. Jan. 31, 2005; 2005, No. 183 (Adj. Sess.), § 2; 2007, No. 176 (Adj. Sess.), § 2, eff. May 28, 2008; 2009, No. 136 (Adj. Sess.), § 1; 2013, No. 59, § 2; 2013, No. 146 (Adj. Sess.), § 1, eff. May 27, 2014; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2791 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), § 1, eff. May 28, 2002; 2003, No. 115 (Adj. Sess.), § 78, eff. Jan. 31, 2005; 2005, No. 183 (Adj. Sess.), § 2; 2007, No. 176 (Adj. Sess.), § 2, eff. May 28, 2008; 2009, No. 136 (Adj. Sess.), § 1; 2013, No. 59, § 2; 2013, No. 146 (Adj. Sess.), § 1, eff. May 27, 2014; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2792 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2005, No. 8, § 6b, eff. April 25, 2005; 2005, No. 183 (Adj. Sess.), § 3; 2007, No. 147 (Adj. Sess.), § 1, eff. May 16, 2008; 2007, No. 176 (Adj. Sess.), § 15, eff. May 28, 2008; 2009, No. 136 (Adj. Sess.), § 2; 2013, No. 59, § 3; 2023, No. 78, § F.10, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 326, eff. July 1, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2024.)
§ 2793 Designation of downtown development districts [Repealed effective July 1, 2034]
(a) A municipality, by its legislative body, may apply to the State Board for designation of a downtown area within that municipality as a downtown development district.
(1) For applications filed on and after July 1, 2014, the intention to apply for designation under this section shall be included in the plan of the municipality, and the plan shall explain how the designation would further the plan’s goals and the goals of section 4302 of this title.
(2) A preapplication meeting shall be held with Department staff to review the program requirements and to preliminarily identify possible designation boundaries. The meeting shall be held in the municipality unless another location is agreed to by the municipality.
(3) An application by a municipality shall contain a map that accurately delineates the district and is consistent with the guidelines produced by the Department under subsection 2792(d) of this title. The application shall also include evidence that the regional planning commission and the regional development corporation have been notified of the municipality’s intent to apply, evidence that the municipality has published notice of its application in a local newspaper of general circulation within the municipality, and information showing that the district meets the standards for designation established in subsection (b) of this section. Upon receipt of an application, the State Board shall provide written notice of the application to the Land Use Review Board. The Land Use Review Board and interested persons shall have 15 days after notice to submit written comments regarding the application before the State Board issues a written decision that demonstrates the applicant’s compliance with the requirements of this chapter.
(b) At the first meeting of the State Board held after 45 days of receipt of a completed application, the State Board shall designate a downtown development district if the State Board finds in its written decision that the municipality has:
(1) Demonstrated a commitment to protect and enhance the historic character of the downtown through the adoption of a design review district, through the adoption of an historic district, through the adoption of regulations that adequately regulate the physical form and scale of development that the State Board determines substantially meet the historic preservation requirements in subdivisions 4414(1)(E) and (F) of this title, or through the creation of a development review board authorized to undertake local Act 250 reviews of municipal impacts pursuant to section 4420 of this title.
(2) Provided a community reinvestment agreement that has been executed by the authorized representatives of the municipal government, business and property owners within the district, and community groups with an articulated purpose of supporting downtown interests, and that contains the following provisions:
(A) A delineation of the area that meets the requirements set forth in subdivision 2791(3) of this title and that is part of or contains a district that is listed or eligible for listing on the National Register of Historic Places pursuant to 16 U.S.C. § 470a.
(B) A capital budget and program pursuant to section 4430 of this title to improve or preserve public infrastructure within the district, including facilities for public transit, parking, pedestrian amenities, lighting, and public space.
(C) A source of funding and resources necessary to fulfill the community reinvestment agreement, demonstrated by a commitment by the legislative body of the municipality to implement at least one of the following:
(i) a special assessment district created to provide funding to the downtown district;
(ii) authority to enter into a tax stabilization agreement for the purposes of economic development in a downtown district;
(iii) a commitment to implement a tax incremental financing district pursuant to subchapter 5 of chapter 53 of this title; or
(iv) other multiple-year financial commitments among the parties subject to the approval of the State Board.
(D) An organizational structure necessary to sustain a comprehensive long-term downtown revitalization effort, including a local downtown organization as defined under subdivision 2791(5) of this title that will collaborate with municipal departments, local businesses, and local nonprofit organizations:
(i) to enhance the physical appearance and livability of the downtown district by implementing local policies that promote the use and rehabilitation of historic and existing buildings, by developing pedestrian-oriented design requirements, by encouraging new development and infill that satisfy such design requirements, and by supporting long-term planning that is consistent with the goals set forth in section 4302 of this title;
(ii) to build consensus and cooperation among the many groups and individuals who have a role in the planning, development, and revitalization process;
(iii) to market the assets of the downtown district to customers, potential investors, new businesses, local citizens, and visitors;
(iv) to strengthen, diversify, and increase the economic activity within the downtown district;
(v) to recognize and incorporate the map of the designated downtown district into the next update of the municipal plan; and
(vi) to measure annually progress and achievements of the revitalization efforts as required by Department guidelines developed pursuant to subsection 2792(d) of this title.
(E) Evidence that any private or municipal sewage system and private or public water supply serving the proposed downtown district is in compliance with the requirements of 10 V.S.A. chapters 47 and 56 and has adequately demonstrated an intent to reserve sufficient wastewater and water allocations to serve the future needs of the designated areas. Any municipality proposing a municipal sewage system and public water supply to serve the proposed downtown district shall provide evidence to the State Board of a commitment to construct or maintain such a system and supply in compliance with requirements of 10 V.S.A. chapters 47 and 56, or a commitment to construct, as applicable, a permittable potable water supply, wastewater system, indirect discharge, or public water supply within no more than ten years. A commitment to construct does not relieve the property owners in the district from meeting any applicable statute, rule, or bylaw regarding wastewater systems, potable water supplies, public water supplies, indirect discharges, and the subdivision of land.
(3) A planning process confirmed under section 4350 of this title.
(c) A designation issued under this section shall be effective for eight years and may be renewed on application by the municipality. The State Board also shall review a community’s designation four years after issuance or renewal and may review compliance with the designation requirements at more frequent intervals. Any community applying for renewal shall explain how the designation under this section has furthered the goals of the town plan and shall submit an approved town plan map that depicts the boundary of the designated district. If at any time the State Board determines that the downtown development district no longer meets the standards for designation established in subsection (b) of this section, it may take any of the following actions:
(1) require corrective action;
(2) provide technical assistance through the Vermont Downtown Program;
(3) limit eligibility for the benefits established in section 2794 of this chapter without affecting any of the district’s previously awarded benefits; or
(4) remove the district’s designation without affecting any of the district’s previously awarded benefits.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), §§ 1a-3, eff. May 28, 2002; 2003, No. 115 (Adj. Sess.), § 79, eff. Jan. 31, 2005; 2007, No. 147 (Adj. Sess.), § 2, eff. May 16, 2008; 2013, No. 59, § 4; 2017, No. 197 (Adj. Sess.), § 8; 2023, No. 78, § F.11, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), §§ 1a-3, eff. May 28, 2002; 2003, No. 115 (Adj. Sess.), § 79, eff. Jan. 31, 2005; 2007, No. 147 (Adj. Sess.), § 2, eff. May 16, 2008; 2013, No. 59, § 4; 2017, No. 197 (Adj. Sess.), § 8; 2023, No. 78, § F.11, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793a Designation of village centers by State Board [Repealed effective July 1, 2034]
(a) A town that has a duly adopted and approved plan and a planning process that is confirmed in accordance with section 4350 of this title may apply to the State Board for designation of one or more of its village centers. If an incorporated village of a town has an approved municipal plan and a planning process independently confirmed in accordance with section 4350 of this title, the incorporated village shall be the applicant for designation of its village center.
(1) For applications filed on and after July 1, 2014, the intention to apply for designation under this section shall be included in the plan of the municipality, and the plan shall explain how the designation would further the plan’s goals and the goals of section 4302 of this title.
(2) A preapplication meeting shall be held with Department staff to review the program requirements and to preliminarily identify possible designation boundaries. The meeting shall be held in the municipality unless another location is agreed to by the municipality.
(3) An application for designation under this section must include a map that delineates the boundaries of the village center consistent with the definition of “village center” provided in subdivision 2791(10) of this title and evidence that notice has been given to the regional planning commission and the regional development corporation of the intent to apply for this designation. The map shall be consistent with the guidelines produced by the Department under subsection 2792(d) of this title.
(b) At the first meeting of the State Board held after 45 days of receipt of a completed application, the State Board shall designate a village center if the State Board finds the applicant has met the requirements of subsection (a) of this section.
(c) A village center designated by the State Board pursuant to subsection (a) of this section is eligible for the following development incentives and benefits:
(1) Provided the proposal is eligible, priority consideration for municipal planning funds under section 4306 of this title for projects that are related to the designated village center.
(2) Inclusion of a village center, as defined in this chapter, as a priority growth center in the State’s consolidated plan for housing and community development programs.
(3) The authority to create a special taxing district pursuant to chapter 87 of this title for the purpose of financing both capital and operating costs of a project within the boundaries established through village center designation.
(4) The Downtown and Village Center Tax Credit Program described in 32 V.S.A. § 5930aa et seq.
(5) Whenever the Commissioner of Buildings and General Services or other State officials in charge of selecting a site are planning to lease or construct buildings suitable to being located in a village center after determining that the option of utilizing existing space in a downtown development district pursuant to subdivision 2794(a)(12) of this title is not feasible, the option of utilizing existing space in a designated village center shall be given thorough investigation and priority, in consultation with the community.
(d) The State Board shall review a village center designation every eight years and may review compliance with the designation requirements at more frequent intervals. Any community applying for renewal shall explain how the designation under this section has furthered the goals of the town plan and shall submit an approved town plan map that depicts the boundary of the designated district. If at any time the State Board determines that the village center no longer meets the standards for designation established in subsection (a) of this section, it may take any of the following actions:
(1) require corrective action;
(2) provide technical assistance through the Vermont Downtown Program;
(3) limit eligibility for the benefits pursuant to subsection (c) of this section without affecting any of the village center’s previously awarded benefits; or
(4) remove the village center’s designation without affecting any of the village center’s previously awarded benefits.
(Added 2001, No. 114 (Adj. Sess.), § 4, eff. May 28, 2002; amended 2003, No. 164 (Adj. Sess.), § 13, eff. June 12, 2004; 2005, No. 183 (Adj. Sess.), § 14; 2007, No. 147 (Adj. Sess.), § 3, eff. May 16, 2008; 2013, No. 59, § 5; 2017, No. 197 (Adj. Sess.), § 9; 2021, No. 182 (Adj. Sess.), § 7, eff. July 1, 2022; 2023, No. 78, § F.12, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793a Repealed
[Repealed]
(Added 2001, No. 114 (Adj. Sess.), § 4, eff. May 28, 2002; amended 2003, No. 164 (Adj. Sess.), § 13, eff. June 12, 2004; 2005, No. 183 (Adj. Sess.), § 14; 2007, No. 147 (Adj. Sess.), § 3, eff. May 16, 2008; 2013, No. 59, § 5; 2017, No. 197 (Adj. Sess.), § 9; 2021, No. 182 (Adj. Sess.), § 7, eff. July 1, 2022; 2023, No. 78, § F.12, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793b Designation of new town center development districts [Repealed effective July 1, 2034]
(a) A municipality, by its legislative body, may apply to the State Board for designation of an area within that municipality as a new town center development district, provided no traditional downtown or new town center already exists in that municipality.
(1) The State Board shall not approve an application filed by a municipality on or after July 1, 2014 unless the municipality has stated in its town plan that it intends to apply for designation under this section, and the town plan explains how the designation would further the plan’s goals and the goals of section 4302 of this title.
(2) A preapplication meeting shall be held with Department staff before an application is filed to review the program requirements and to identify possible designation boundaries. The meeting shall be held in the municipality unless another location is agreed to by the municipality.
(3) An application for designation shall contain a map that delineates the boundaries of the proposed district and is consistent with the guidelines produced by the Department under subsection 2792(d) of this title. The application shall also demonstrate that the proposed district meets the requirements set forth in subdivision 2791(11) of this title, as well as the standards for designation established in subsection (b) of this section. The application shall verify that the regional planning commission and the regional development corporation have been notified of the municipality’s intent to apply for designation.
(b) At the first meeting of the State Board held after 45 days of receipt of a completed application, the State Board shall designate a new town center development district if the State Board finds, with respect to that district, the municipality has:
(1) A confirmed planning process under section 4350 of this title, developed a municipal center plan, and adopted bylaws and ordinances that implement the plan, including an official map, and a design review district created under this title or other regulations that adequately control the physical form and scale of development.
(2) Provided a community investment agreement that has been executed by authorized representatives of the municipal government, businesses and property owners within the district, and community groups with an articulated purpose of supporting downtown interests, and contains the following:
(A) A map of the designated new town center. The total area of land encompassed within a designated new town center shall not exceed 125 acres. In a municipality with a population greater than 15,000, the total area of land encompassed within a designated new town center may include land in excess of 125 acres, provided that the additional area is needed to facilitate the redevelopment of predominantly developed land in accordance with the smart growth principles defined under subdivision 2791(13) of this title and shall not exceed 175 acres.
(B) Regulations enabling densities that are not less than four dwelling units, including all identified residential uses or residential building types, per acre and not less than those allowed in any part of the municipality not within an area designated under this chapter.
(C) Regulations enabling multistory and mixed use buildings and mixed uses which enable the development of buildings in a compact manner.
(D) A capital improvement program, or a capital budget and program under this title, showing a clear plan for providing public infrastructure within the center, including facilities for drinking water, wastewater, stormwater, public space, lighting, and transportation, including public transit, parking, and pedestrian amenities.
(E) A clear plan for mixed income housing in the new town center.
(F) Evidence that civic and public buildings do exist, or will exist in the center, as shown by the capital improvement plan or the capital budget and program, and the official map.
(G) [Repealed.]
(H) Evidence that any private or municipal sewage system and private or public water supply serving the proposed new town center are in compliance with the requirements of 10 V.S.A. chapters 47 and 56, and that the municipality has dedicated a portion of any unallocated reserve capacity of the sewage and public water supply necessary to support growth within the proposed new town center. Any municipality proposing a municipal sewage system and public water supply to serve the proposed new town center shall provide evidence to the State Board of a commitment to construct or maintain such a system and supply in compliance with requirements of 10 V.S.A. chapters 47 and 56, or a commitment to construct, as applicable, a permittable potable water supply, wastewater system, indirect discharge, or public water supply within no more than ten years. A commitment to construct does not relieve the property owners in the new town center from meeting the applicable regulations of the Agency of Natural Resources regarding wastewater systems, potable water supplies, public water supplies, indirect discharges, and the subdivision of land. In the event a municipality fails in its commitment to construct a municipal sewage system or public water supply, or both, the State Board shall revoke designation, unless the municipality demonstrates to the State Board that all good faith efforts were made and continue to be made to obtain the required approvals and permits from the Agency of Natural Resources, and failure to construct was due to unavailability of sufficient State or federal funding.
(c)(1) Upon designation by the State Board under this section as a new town center, a new town center and projects in a new town center shall be eligible for the authority to create a special taxing district, pursuant to chapter 87 of this title, for the purpose of financing both capital and operating costs of a project within the boundaries established through new town center designation.
(2) Whenever the Commissioner of Buildings and General Services or other State officials in charge of selecting a site are planning to lease or construct buildings suitable to being located in a new town center after determining that the option of utilizing existing space in a downtown development district, pursuant to subdivision 2794(a)(12) of this title, is not feasible, the option of utilizing existing space in a designated new town center shall be given thorough investigation and priority, in consultation with the community.
(d) A designation issued under this section shall be effective for eight years and may be renewed on application by the municipality. The State Board also shall review a new town center designation four years after issuance or renewal and may review compliance with the designation requirements at more frequent intervals. The State Board may adjust the schedule of review under this subsection to coincide with the review of a related growth center. If at any time the State Board determines the new town center no longer meets the standards for designation established in subsection (b) of this section, it may take any of the following actions:
(1) require corrective action;
(2) provide technical assistance through the Vermont Downtown Program;
(3) limit eligibility for the benefits pursuant to subsection (c) of this section without affecting any of the new town center’s previously awarded benefits; or
(4) remove the new town center’s designation without affecting any of the town center’s previously awarded benefits.
(Added 2001, No. 114 (Adj. Sess.), § 4a, eff. May 28, 2002; amended 2003, No. 115 (Adj. Sess.), § 80, eff. Jan. 31, 2005; 2007, No. 69, § 1; 2007, No. 147 (Adj. Sess.), § 4, eff. May 16, 2008; 2007, No. 176 (Adj. Sess.), § 4, eff. May 28, 2008; 2013, No. 146 (Adj. Sess.), § 2, eff. May 27, 2014; 2017, No. 197 (Adj. Sess.), § 10; 2021, No. 182 (Adj. Sess.), § 24, eff. July 1, 2022; 2023, No. 78, § F.13, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034; 2025, No. 18, § 47, eff. May 13, 2025.)
§ 2793b Repealed
[Repealed]
(Added 2001, No. 114 (Adj. Sess.), § 4a, eff. May 28, 2002; amended 2003, No. 115 (Adj. Sess.), § 80, eff. Jan. 31, 2005; 2007, No. 69, § 1; 2007, No. 147 (Adj. Sess.), § 4, eff. May 16, 2008; 2007, No. 176 (Adj. Sess.), § 4, eff. May 28, 2008; 2013, No. 146 (Adj. Sess.), § 2, eff. May 27, 2014; 2017, No. 197 (Adj. Sess.), § 10; 2021, No. 182 (Adj. Sess.), § 24, eff. July 1, 2022; 2023, No. 78, § F.13, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034; 2025, No. 18, § 47, eff. May 13, 2025.)
§ 2793c Designation of growth centers [Repealed effective July 1, 2034]
(a)(1) Definition. As used in this section, “growth center” means an area of land that:
(A) is within or adjoining a downtown, village center, or new town center designated under this chapter; and
(B) has clearly defined boundaries that can accommodate a majority of commercial, residential, and industrial growth anticipated by the municipality or municipalities over a 20-year period.
(2) Development and redevelopment within any growth center shall support Vermont’s traditional land use pattern of compact centers separated by rural lands and shall meet the requirements set forth in subsection (b) of this section.
(b) Requirements. To achieve the purposes and goals set forth in section 4302 of this title and conform to smart growth principles, a growth center shall meet each of the following requirements:
(1) Size. The size of the growth center shall be sufficient to accommodate a majority of the projected development within each applicant municipality over a 20-year planning period, and:
(A) shall be no larger than the area necessary to accommodate:
(i) 150 percent of the projected dwelling units in the municipality over the period; and
(ii) no more than 100 percent of the projected commercial and industrial development in the municipality;
(B) shall not encompass an excessive area of land that would involve the unnecessary extension of infrastructure to service low-density development or automobile-dependent strip development; and
(C) may include undevelopable land and land planned for green space or open space, as well as areas designed for infill and redevelopment.
(2) Location. The area of land proposed for the growth center shall be located within or shall adjoin a designated downtown, village center, or new town center. If the growth center is to be adjoining, then the applicant shall demonstrate that an existing designated downtown, village center, or new town center located within each applicant municipality reasonably cannot accommodate the growth proposed to occur in the growth center.
(3) Uses. The growth center shall support and reinforce any existing designated downtown, village center, or new town center located in the municipality or adjacent municipality by accommodating concentrated residential neighborhoods and a mix and scale of commercial, civic, and industrial uses that are consistent with the anticipated demand for those uses within the municipality and region. The growth center shall incorporate a mix of uses that typically includes or is planned to include the following: retail, office, services, and other commercial, civic, recreational, industrial, and residential uses, including affordable housing and new residential neighborhoods, within a densely developed, compact area.
(4) Density, design, and form. The municipality shall adopt municipal plan policies and implementing bylaws and ordinances applicable to the growth center that conform with design guidelines developed by the Department pursuant to subdivision (d)(3) of this section, and that:
(A) Allow net residential densities within the growth center greater than or equal to four single-family detached dwelling units per acre, exclusive of accessory dwelling units, or no fewer than the average existing density of the surrounding neighborhood, whichever is greater.
(B) Ensure that all investments contribute to a built environment that enhances the existing and planned character and supports pedestrian use.
(C) Ensure sufficient density, building heights, and building coverage or sufficient floor area ratio. A municipality may use bylaws that regulate adequately the physical form and scale of development to demonstrate compliance with this requirement.
(D) Minimize the required lot sizes, setbacks, and parking and street widths.
(E) Organize the proposed growth center development around one or more central places or focal points that will establish community identity and promote social interaction, such as prominent buildings of civic, cultural, or spiritual significance or a village green, common, or square.
(F) Prohibit linear, automobile-dependent strip development along heavily traveled roads within and extending outside the growth center.
(5) Capital budget. The applicant has adopted, in accordance with section 4430 of this title, a capital budget and program that includes existing and planned wastewater treatment, water, stormwater, and transportation infrastructure; public spaces; other infrastructure necessary to support growth center development; and a reference map.
(6) General infrastructure. The existing and planned infrastructure shall be adequate to implement the growth center and meet the municipality’s 20-year growth needs. The municipality shall have adopted policies on the extension of water and wastewater lines that include a defined service area and allocation plan to support the growth center.
(7) Public spaces. The growth center shall incorporate existing or planned public spaces that promote social interaction, such as public parks, civic buildings such as a post office or municipal offices, community gardens, and other formal and informal places to gather.
(8) Transportation. Existing or planned transportation infrastructure serving the growth center shall be adequate to implement growth center development over the 20-year period, and shall conform with “complete streets” principles as described under 19 V.S.A. § 309d; shall establish multi-modal access to the downtown, village center, or new town center; shall incorporate, accommodate, and support the use of public transit systems; and shall encompass a circulation system that is conducive to pedestrian and other nonvehicular traffic. The applicable municipal plans and bylaws shall include provisions that will result in street connectivity and aim to create a comprehensive, integrated, connected network for all modes.
(9) Natural resources within growth centers. The growth center shall avoid or minimize the inclusion of important natural resources and identified flood hazard and fluvial erosion hazard areas. If an applicant includes an important natural resource or flood hazard or fluvial erosion hazard area within a proposed growth center, the applicant shall identify the resource or area, explain why the resource or area was included, describe any anticipated disturbance to the resource or area, and describe how the municipality’s land use bylaws will avoid or minimize impacts to the resource or area. If impacts to the resource or area are necessary to achieve growth center goals, the applicant shall provide justification for why the disturbance cannot be avoided or minimized.
(10) Natural resources outside growth centers. Municipalities applying for growth center designation shall ensure that the approved local plan, implementing bylaws, and other programs serve to minimize conflicts of development with agricultural and forest industries; minimize the conversion and fragmentation of farmland, forestland, or significant areas of habitat connectivity; and minimize impacts on important natural resources located outside the proposed growth center.
(11) Historic resources. The growth center shall be compatible with and reinforce the character of sites that are listed or eligible for listing on the National or State Register of Historic Places, and other significant cultural and historic resources identified by local or State government in or adjacent to the growth center.
(c) Application for designation of a growth center.
(1) Before submitting a complete application to the Board, the municipal legislative body shall vote to apply for growth center designation according to the procedure established under sections 1972 and 1973 of this title.
(2) The application for designation as a growth center shall:
(A) be based on a 20-year plan for growth that is reflected in the municipal plan of the municipality involved;
(B) include regional and local growth projections and shall identify targets for 20-year growth in various sectors;
(C) include an inventory map and analysis of growth and development potential in the designated downtown, village center, or new town center that connects to the proposed growth center; and
(D) quantify the type and amount of development and land area needed to support the proposed growth center beyond what is available in the designated downtown, village center, or new town center.
(3) Each municipality involved in the application shall have a duly adopted and regionally approved municipal plan that describes the proposed growth center and a planning process that is confirmed in accordance with section 4350 of this title.
(4) Each municipality involved in the application shall have adopted bylaws and regulations under sections 4414, 4418, and 4422 of this title and nonregulatory programs that will support and implement the growth center requirements of subsection (b) of this section.
(5) Each application for designation as a growth center shall include:
(A) A description from the regional planning commission in which each applicant municipality is located of the role of the proposed growth center in the region, and the relationship between the proposed growth center and neighboring communities.
(B) Written confirmation from the applicable regional planning commission that the proposed growth center conforms with the regional plan for the region in which each applicant municipality is located.
(C) A concept plan depicting the character of the streets and public spaces within the growth center, and depicting the size and placement of buildings envisioned in the municipal plan.
(D) One or more maps that accurately delineate the boundaries of the growth center, and an official map, if one is adopted, of the growth center. The map or maps shall identify:
(i) growth center boundaries in relation to the associated designated downtown, village center, or new town center;
(ii) important natural resources, identified flood hazard and fluvial erosion hazard areas, National Register Historic Districts, National or State Register Historic Sites, and other significant cultural and natural resources identified by local or State government within the municipality;
(iii) existing slopes of 20 percent or greater; and
(iv) existing and planned public facilities, including public buildings, public spaces, wastewater and water services, roads, sidewalks, paths, transit centers, parking areas, parks, and schools within the growth center boundaries.
(d) Designation process.
(1) Preliminary application and meeting process.
(A) Before submitting an application pursuant to subsection (c) of this section, a municipality shall submit a preliminary application to the Department consisting of a draft growth center map and a brief explanation of the planning and implementation policies the municipality plans to enact prior to submitting an application under subsection (c) of this section. These planning and implementation policies will be used to guide development within the growth center and preserve the rural character of the surrounding area.
(B) The Department shall solicit comments on the preliminary application from State agencies and regional planning commissions. The Department shall evaluate the preliminary application for compliance with the requirements of subsection (b) of this section, identify potential issues related to the growth center boundary and implementation tools, and make recommendations to address those issues through adjustment of the growth center boundaries and revised or alternative implementation plans.
(C) The Department shall schedule and conduct a preapplication meeting with the applicant.
(2) Regional planning commission technical planning assistance. Regional planning commissions, pursuant to section 4345a of this title, are uniquely positioned to assist municipalities with growth center planning. To this end, at the request of a municipality contemplating growth center designation, the regional planning commission shall provide technical assistance in support of that designation.
(A) Technical support shall include:
(i) preparing population, housing, and employment growth projections for a period of not less than 20 years;
(ii) mapping, including identification of development capacity, land use, existing and planned infrastructure and service areas, important natural resources and historic resources, and physical constraints to development and associated features; and
(iii) analysis of whether the geographic area of proposed growth centers will accommodate a majority of the projected growth over a 20-year period.
(B) These projections and analyses may be prepared on a municipal or regional basis.
(3) Planning manual. The Commissioner of Housing and Community Development or designee shall ensure that the planning manual prepared under section 4304 of this title provides guidelines for municipalities and regional planning commissions planning for growth center designation. The manual shall identify State resources available to assist municipalities and shall include a checklist indicating the issues that should be addressed by the municipality in planning for growth center designation.
(A) The manual shall address in appropriate detail:
(i) methodologies for conducting growth projections and analyses;
(ii) the methodology for determining the appropriate size and location of a growth center boundary;
(iii) the methodology for calculating residential density in a growth center; and
(iv) the methodology for determining the adequacy of infrastructure needed to support anticipated growth within a growth center.
(B) The planning manual shall address defining appropriate boundaries that are not unduly expansive; enacting plan policies and implementation bylaws that accommodate reasonable densities, compact settlement patterns, and an appropriate mix of uses within growth centers; planning for infrastructure, transportation facilities, and open space; avoiding or mitigating impacts to important natural resources and historic resources; and strategies for maintaining the rural character and working landscape outside growth center boundaries.
(4) Assistance by Department. The Commissioner of Housing and Community Development or designee shall provide ongoing assistance to the State Board to review applications for growth center designation, including coordinating review by State agencies on matters of agency interest and evaluating applications and associated plan policies and implementation measures for conformance with this section.
(5) Planning grants. The Vermont Municipal Planning Grant Program, pursuant to subdivision 4306(b)(2) of this title, shall make funding for activities associated with growth center planning a priority, and the Vermont Community Development Program shall make funding for activities associated with growth center planning a priority under the planning grant program.
(6) Designation decision. Within 90 days of the receipt of a completed application, after providing notice as required in the case of a proposed municipal plan or amendment to each person listed under subsection 4384(e) of this title and to the executive director of each adjacent regional planning commission, and after providing an opportunity for the public to be heard, the State Board formally shall designate a growth center if the State Board finds, in a written decision, that the growth center proposal meets the requirements of subsection (b) of this section. An application that complies with all of the requirements of subsection (b) of this section other than the size requirement set forth in subdivision (b)(1) may be approved by the State Board if the applicant presents compelling justification for deviating from the size requirement and provided that at least two-thirds but no fewer than seven of the members of the State Board present vote in favor of the application.
(7) Conditions of designation. The Board, as a condition of growth center designation, may require certain regulatory changes prior to the effective date of designation. In addition, the growth center designation may be modified, suspended, or revoked if the applicant fails to achieve the required regulatory changes within a specified period of time. As an option, municipalities applying for growth center designation may make certain regulatory changes effective and contingent upon formal designation.
(8) Request for reconsideration. Within 21 days of a growth center designation under subdivision (1) of this subsection, a person or entity that submitted written or oral comments to the State Board during its consideration of the application for the designated growth center may request that the State Board reconsider the designation. Any such request for reconsideration shall identify each specific finding of the State Board for which reconsideration is requested and state the reasons why each such finding should be reconsidered. The filing of such a request shall stay the effectiveness of the designation until the State Board renders its decision on the request. On receipt of such a request, the State Board shall promptly notify the applicant municipality of the request if that municipality is not the requestor. The State Board shall convene at the earliest feasible date to consider the request and shall render its decision on the request within 90 days of the date on which the request was filed.
(e) Length of Designation.
(1) Except as otherwise provided in this section, growth center designation shall extend for 20 years. The State Board shall review a growth center designation no less frequently than every five years, after providing notice as required in the case of a proposed municipal plan or amendment under subsection 4384(e) of this title, and after providing an opportunity for the public to be heard. For each applicant, the State Board may adjust the schedule of review under this subsection so as to coincide with the review of the related and underlying designation of a downtown, village center, or new town center.
(2) The five-year review shall include, at a minimum, an updated five-year capital plan that funds infrastructure improvements necessary to implement growth center development, updated development projections, a summary of growth within and outside the growth center to date, and any changes to the municipal plan, bylaws, or maps since the original growth center application or any previous review.
(3) If, at the time of the review, the State Board determines that the growth center no longer meets the standards for designation in effect at the time the growth center initially was designated, the State Board may:
(A) require corrective action;
(B) provide technical assistance through the coordinated assistance program; or
(C) remove the growth center’s designation, with that removal not affecting any of the growth center’s previously awarded benefits.
(4) At any time, a municipality shall be able to apply to the State Board for amendment of a designated growth center or any related conditions or other matters, according to the procedures that apply in the case of an original application.
(f) Review by the Land Use Review Board and issuance of Act 250 findings of fact and conclusions of law. Subsequent to growth center designation by the State Board, an applicant municipality may submit a request for findings of fact and conclusions of law under specific criteria of 10 V.S.A. § 6086(a) to the Land Use Review Board for consideration in accordance with the following:
(1) In requesting findings of fact, the applicant municipality shall specify any criteria for which findings and conclusions are requested and the nature and scope of the findings that are being requested.
(2) The Land Use Review Board shall notify all landowners of land located within the proposed growth center, entities that would be accorded party status before a District Commission under 10 V.S.A. § 6085(c)(1)(C) and (D), and all owners of land adjoining the proposed growth center of a hearing on the issue. The Land Use Review Board may fashion alternate and more efficient means of providing adequate notice to persons potentially affected under this subdivision. Persons notified may appear at the hearing and be heard, as may any other person who has a particularized interest protected by 10 V.S.A. chapter 151 that may be affected by the decision.
(3) The Land Use Review Board shall review the request in accordance with and shall issue findings of fact and conclusions of law under the applicable criteria of 10 V.S.A. § 6086(a) which are deemed to have been satisfied by the applicant’s submissions during the formal designation process, any additional submissions, as well as associated municipal plan policies, programs, and bylaws. Findings and conclusions of law shall be effective for a period of five years, unless otherwise provided. The Land Use Review Board, before issuing its findings and conclusions, may require specific changes in the proposal, or regulatory changes by the municipality, as a condition for certain findings and conclusions. These findings and conclusions shall be subject to appeal to the Environmental Division pursuant to 10 V.S.A. chapter 220 within 30 days of issuance.
(4) During the period of time in which a growth center designation remains in effect, any findings and conclusions issued by the Land Use Review Board or any final adjudication of those findings and conclusions shall be applicable to any subsequent application for approval by a District Commission under 10 V.S.A. chapter 151 and shall be binding upon the District Commission and the persons provided notice in the Land Use Review Board proceeding, according to the rules of the Land Use Review Board, provided the proposed development project is located within the designated growth center.
(5) In any application to a District Commission under 10 V.S.A. chapter 151 for approval of a proposed development or subdivision to be located within the designated growth center, the District Commission shall review de novo any relevant criteria of 10 V.S.A. § 6086(a) that are not subject to findings of fact and conclusions of law issued by the Land Use Review Board pursuant to this section.
(6) The decision of the State Board pursuant to this section shall not be binding as to the criteria of 10 V.S.A. § 6086(a) in any proceeding before the Land Use Review Board or a District Commission.
(g) Review by District Commission. In addition to its other powers, in making its determinations under 10 V.S.A. § 6086, a District Commission may consider important resources within a proposed growth center that have been identified in the designation process and the anticipated impacts on those resources, and may require that reasonable mitigation be provided as an alternative to permit denial.
(h) Concurrent designation. A municipality may seek designation of a growth center concurrently with the designation of a downtown pursuant to section 2793 of this title, the designation of a village center pursuant to section 2793a of this title, or the designation of a new town center pursuant to section 2793b of this title.
(i) Benefits from designation. A growth center designated by the State Board pursuant to this section is eligible for the following development incentives and benefits:
(1) Financial incentives.
(A) A municipality may use tax increment financing for infrastructure and improvements in its designated growth center pursuant to the provisions of Title 32 and this title. A designated growth center under this section shall be presumed to have met any locational criteria established in Vermont statutes for tax increment financing. The State Board may consider project criteria established under those statutes and, as appropriate, may make recommendations as to whether any of those project criteria have been met.
(B) Vermont Economic Development Authority (VEDA) incentives shall be provided to designated growth centers.
(2) State assistance and funding for growth centers.
(A) It is the intention of the General Assembly to give the highest priority to facilitating development and growth in designated downtowns and village centers whenever feasible. The provisions in this section and elsewhere in law that provide and establish priorities for State assistance and funding for designated growth centers are not intended to take precedence over any other provisions of law that provide State assistance and funding for designated downtowns and village centers.
(B) On or before January 15, 2007, the Secretary of Administration, in consultation with the Secretaries of Natural Resources, of Transportation, of Commerce and Community Development, and of Agriculture, Food and Markets, shall report to the General Assembly on the priorities and preferences for State assistance and funding granted in law to downtown centers, village centers, and designated growth centers, and the manner in which such priorities are applied.
(3) State infrastructure and development assistance.
(A) With respect to State grants and other State funding, priority should be given to support infrastructure and other investments in public facilities located inside a designated growth center to consist of the following:
(i) Agency of Natural Resources funding of new, expanded, upgraded, or refurbished wastewater management facilities serving a growth center in accordance with the Agency’s rules regarding priority for pollution abatement, pollution prevention, and the protection of public health and water quality.
(ii) Technical and financial assistance for brownfields remediation under the Vermont brownfields initiative.
(iii) Community development block grant (CDBG) program implementation grants.
(iv) Technical, financial, and other benefits made available by statute or rule.
(B) Whenever the Commissioner of Buildings and General Services or other State officials in charge of selecting a site are planning to lease or construct buildings suitable to being located in a designated growth center after determining that the option of utilizing existing space in a downtown development district pursuant to subdivision 2794(a)(12) of this title or within a designated village center pursuant to subdivision 2793a(c)(5) of this title or within a designated new town center pursuant to subdivision 2793b(c)(2) of this title is not feasible, the option of locating in a designated growth center shall be given thorough investigation and priority in consultation with the legislative body of the municipality.
(4) State investments. The State shall:
(A) Expand the scope of the downtown transportation fund, as funds are available, to include access to downtowns with the first priority being projects located in designated downtowns, the second priority being projects located in designated village centers, and the third priority being projects located in designated growth centers.
(B) Extend priority consideration for transportation enhancement improvements located within or serving designated downtowns, village centers, and growth centers.
(C) Grant to projects located within designated growth centers priority consideration for State housing renovation and affordable housing construction assistance programs.
(5) Regulatory incentives.
(A) Master plan permit application. At any time while designation of a growth center is in effect, any person or persons who exercise ownership or control over an area encompassing all or part of the designated growth center or any municipality within which a growth center has been formally designated may apply for a master plan permit for that area or any portion of that area to the District Commission pursuant to the rules of the Land Use Review Board. Municipalities making an application under this subdivision are not required to exercise ownership of or control over the affected property. The District Commission shall be bound by any conclusions or findings of the Land Use Review Board, or any final adjudication of those findings and conclusions, pursuant to subsection (f) of this section but shall consider de novo any of the criteria of 10 V.S.A. § 6086(a) that were not subject to the final issuance of findings and conclusions by the Land Use Review Board pursuant to that subsection. In approving a master permit, the District Commission may set forth specific conditions that an applicant for an individual project permit will be required to meet.
(B) Individual project permits within a designated growth center. The District Commission shall review individual Act 250 permit applications in accordance with the specific findings of fact and conclusions of law issued by the Land Use Review Board under this section, if any, and in accordance with the conditions, findings, and conclusions of any applicable master plan permit. Any person proposing a development or subdivision within a designated growth center where no master plan permit is in effect shall be required to file an application with the District Environmental Commission for review under the criteria of 10 V.S.A. § 6086(a).
(Added 2005, No. 183 (Adj. Sess.), § 4; amended 2009, No. 136 (Adj. Sess.), § 3; 2013, No. 11, § 25; 2013, No. 146 (Adj. Sess.), § 3, eff. May 27, 2014; 2009, No. 154 (Adj. Sess.), § 236; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793c Repealed
[Repealed]
(Added 2005, No. 183 (Adj. Sess.), § 4; amended 2009, No. 136 (Adj. Sess.), § 3; 2013, No. 11, § 25; 2013, No. 146 (Adj. Sess.), § 3, eff. May 27, 2014; 2009, No. 154 (Adj. Sess.), § 236; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793d Repealed
[Repealed]
(Repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2018.)
§ 2793e Neighborhood planning areas; designation of neighborhood development areas [Repealed effective July 1, 2034]
(a) Purpose. This section is intended to encourage a municipality to plan for new and infill housing in the area including and immediately encircling its designated downtown, village center, new town center, or within its designated growth center in order to provide needed housing and to further support the commercial establishments in the designated center. To support this goal, this section sets out a two-component process.
(1) The first component is the automatic delineation of a study area, defined in this section as a neighborhood planning area, that includes and encircles a municipality’s designated downtown, village center, or new town center or, in the case of a designated growth center, is within the designated center. The process established by this section allows a municipality with a designated center to identify those locations within a neighborhood planning area that are suitable primarily for residential development.
(2) The second component is the application by a municipality for the designation of locations within this study area as neighborhood development areas that are suitable for residential development and will receive the benefits provided by this section.
(3) The Department shall provide municipalities with designated downtowns, village centers, new town centers, and growth centers with grants, as they become available, and technical assistance to help such municipalities apply for and receive neighborhood development area designations.
(b) Definitions.
(1) “Neighborhood planning area” means an automatically delineated area including and encircling a downtown, village center, or new town center designated under this chapter or within a growth center designated under this chapter. A neighborhood planning area is used for the purpose of identifying locations suitable for new and infill housing that will support a development pattern that is compact, oriented to pedestrians, and consistent with smart growth principles. To ensure a compact settlement pattern, the outer boundary of a neighborhood planning area shall be located entirely within the boundaries of the applicant municipality, unless a joint application is submitted by more than one municipality, and shall be determined:
(A) for a municipality with a designated downtown, by measuring out one-half mile from each point around the entire perimeter of the designated downtown boundary;
(B) for a municipality with one or more designated village centers, by measuring out one-quarter mile from each point around the entire perimeter of the designated village center boundary;
(C) for a municipality with a designated new town center, by measuring out one-quarter mile from each point around the entire perimeter of the designated new town center boundary; and
(D) for a municipality with a designated growth center, as the same boundary as the designated growth center boundary.
(2) “Neighborhood development area” means a location within a neighborhood planning area that is suitable for new and infill housing and that has been approved by the State Board for designation under this section and associated benefits.
(c) Application for designation of a neighborhood development area. The State Board shall approve a neighborhood development area if the application demonstrates and includes all of the following elements:
(1) The municipality has a duly adopted and approved plan and a planning process that is confirmed in accordance with section 4350 of this title and has adopted bylaws and regulations in accordance with sections 4414, 4418, and 4442 of this title.
(2) A preapplication meeting with Department staff was held to review the program requirements and to preliminarily identify possible neighborhood development areas.
(3) The proposed neighborhood development area is within a neighborhood planning area or such extension of the planning area as may be approved under subsection (d) of this section.
(4) The proposed neighborhood development area consists of those portions of the neighborhood planning area that are generally within walking distance from the municipality’s downtown, village center, or new town center designated under this chapter or from locations within the municipality’s growth center designated under this chapter that are planned for higher density development.
(5) The proposed neighborhood development area consists of those portions of the neighborhood planning area that are appropriate for new and infill housing, excluding identified flood hazard and fluvial erosion areas, except those areas containing preexisting development in areas suitable for infill development as defined in § 29-201 of the Vermont Flood Hazard Area and River Corridor Rule. In determining what areas are most suitable for new and infill housing, the municipality shall balance local goals for future land use, the availability of land for housing within the neighborhood planning area, and the smart growth principles. Based on those considerations, the municipality shall select an area for neighborhood development area designation that:
(A) Avoids or minimizes to the extent feasible the inclusion of “important natural resources” as defined in subdivision 2791(14) of this title. If an important natural resource is included within a proposed neighborhood development area, the applicant shall identify the resource, explain why the resource was included, describe any anticipated disturbance to such resource, and describe why the disturbance cannot be avoided or minimized. If the neighborhood development area includes flood hazard areas or river corridors, the local bylaws shall contain provisions consistent with the Agency of Natural Resources’ rules required under 10 V.S.A. § 754(a) to ensure that new infill development within a neighborhood development area occurs outside the floodway and will not cause or contribute to fluvial erosion hazards within the river corridor. If the neighborhood development area includes flood hazard areas or river corridors, local bylaws shall also contain provisions to protect river corridors outside the neighborhood development area consistent with the Agency of Natural Resources’ rules required under 10 V.S.A. § 754(a).
(B) Is served by planned or existing transportation infrastructure that conforms with “complete streets” principles as described under 19 V.S.A. § 309d and establishes pedestrian access directly to the downtown, village center, or new town center.
(C) Is compatible with and will reinforce the character of adjacent National Register Historic Districts, National or State Register Historic Sites, and other significant cultural and natural resources identified by local or State government.
(6) [Repealed.]
(7) The municipal bylaws allow minimum net residential densities within the neighborhood development area greater than or equal to four dwelling units per acre for all identified residential uses or residential building types, exclusive of accessory dwelling units, or not fewer than the average existing density of the surrounding neighborhood, whichever is greater. The methodology for calculating density shall be established in the guidelines developed by the Department pursuant to subsection 2792(d) of this title.
(A) Regulations that adequately regulate the physical form and scale of development may be used to demonstrate compliance with this requirement.
(B) Development in the neighborhood development areas that is lower than the minimum net residential density required by this subdivision (7) shall not qualify for the benefits stated in subsections (f) and (g) of this section. The district coordinator shall determine whether development meets this minimum net residential density requirement in accordance with subsection (f) of this section.
(8) Local bylaws, regulations, and policies applicable to the neighborhood development area substantially conform with neighborhood design guidelines developed by the Department pursuant to section 2792 of this title. These policies shall:
(A) ensure that all investments contribute to a built environment that enhances the existing neighborhood character and supports pedestrian use;
(B) ensure sufficient residential density and building heights;
(C) minimize the required lot sizes, setbacks, and parking and street widths; and
(D) require conformance with “complete streets” principles as described under 19 V.S.A. § 309d, street and pedestrian connectivity, and street trees.
(9) Residents hold a right to utilize household energy conserving devices.
(10) The application includes a map or maps that, at a minimum, identify:
(A) “important natural resources” as defined in subdivision 2791(14) of this title;
(B) existing slopes of 25 percent or steeper;
(C) public facilities, including public buildings, public spaces, sewer or water services, roads, sidewalks, paths, transit, parking areas, parks, and schools;
(D) planned public facilities, roads, or private development that is permitted but not built;
(E) National Register Historic Districts, National or State Register Historic Sites, and other significant cultural and natural resources identified by local or State government;
(F) designated downtown, village center, new town center, or growth center boundaries as approved under this chapter and their associated neighborhood planning area in accordance with this section; and
(G) delineated areas of land appropriate for residential development and redevelopment under the requirements of this section.
(11) The application includes the information and analysis required by the Department’s guidelines under section 2792 of this title.
(d) Designation process. At the first meeting of the State Board held after 45 days after receipt of a completed application, for designation of a neighborhood development area, the State Board, after opportunity for public comment, shall approve a neighborhood development area if the Board determines that the applicant has met the requirements of this section.
(1) When approving a neighborhood development area, the State Board shall consult with the applicant about any changes the Board considers making to the boundaries of the proposed area. After consultation with the applicant, the Board may change the boundaries of the proposed area.
(2) A neighborhood development area may include one or more areas of land extending beyond the delineated neighborhood planning area, provided that at least 80 percent but no fewer than seven of the members of the State Board present find that:
(A) including the extended area beyond the neighborhood planning area is consistent with the goals of section 4302 of this title;
(B) residential development opportunities within the neighborhood planning area are limited due to natural constraints and existing development;
(C) the extended area represents a logical extension of an existing compact settlement pattern and is consistent with smart growth principles; and
(D) the extended area is adjacent to existing development.
(e) Length of designation. Initial designation of a neighborhood development area shall be reviewed concurrently with the next periodic review conducted of the underlying designated downtown, village center, new town center, or growth center.
(1) The State Board, on its motion, may review compliance with the designation requirements at more frequent intervals.
(2) If the underlying downtown, village center, new town center, or growth center designation terminates, the neighborhood development area designation also shall terminate.
(3) If at any time the State Board determines that the designated neighborhood development area no longer meets the standards for designation established in this section, it may take any of the following actions:
(A) require corrective action within a reasonable time frame;
(B) remove the neighborhood development area designation; or
(C) prospectively limit benefits authorized in this chapter.
(4) Action taken by the State Board under subdivision (3) of this subsection shall not affect benefits already received by the municipality or a land owner in the designated neighborhood development area.
(f) Neighborhood development area incentives for developers. Once a municipality has a designated neighborhood development area or has a Vermont neighborhood designation pursuant to section 2793d of this title, any proposed development within that area shall be eligible for each of the benefits listed in this subsection. These benefits shall accrue upon approval by the district coordinator, who shall review the density requirements set forth in subdivision (c)(7) of this section to determine benefit eligibility and issue a jurisdictional opinion under 10 V.S.A. chapter 151 on whether the density requirements are met. These benefits are:
(1) the application fee limit for wastewater applications stated in 3 V.S.A. § 2822(j)(4)(D);
(2) the application fee reduction for residential development stated in 10 V.S.A. § 6083a(d);
(3) the exclusion from the land gains tax provided by 32 V.S.A. § 10002(p); and
(4) eligibility for the Downtown and Village Center Tax Credit Program described in 32 V.S.A. § 5930aa et seq.
(g) Neighborhood development area incentives for municipalities. Once a municipality has a designated neighborhood development area, it may receive:
(1) priority consideration for municipal planning grant funds; and
(2) training and technical assistance from the Department to support an application for benefits from the Department.
(h) Alternative designation. If a municipality has completed all of the planning and assessment steps of this section but has not requested designation of a neighborhood development area, an owner of land within a neighborhood planning area may apply to the State Board for neighborhood development area designation status for a portion of land within the neighborhood planning area. The applicant shall have the responsibility to demonstrate that all of the requirements for a neighborhood development area designation have been satisfied and to notify the municipality that the applicant is seeking the designation. The State Board shall provide the municipality with at least 14 days’ prior written notice of the Board’s meeting to consider the application, and the municipality shall submit to the State Board the municipality’s response, if any, to the application before or during that meeting. On approval of a neighborhood development area designation under this subsection, the applicant may proceed to obtain a jurisdictional opinion from the district coordinator under subsection (f) of this section in order to obtain the benefits granted to neighborhood development areas.
(Added 2013, No. 59, § 8; amended 2021, No. 182 (Adj. Sess.), §§ 8, 23, eff. July 1, 2022; 2023, No. 78, § F.14, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 327, eff. July 1, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2793e Repealed
[Repealed]
(Added 2013, No. 59, § 8; amended 2021, No. 182 (Adj. Sess.), §§ 8, 23, eff. July 1, 2022; 2023, No. 78, § F.14, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 327, eff. July 1, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2794 Incentives for program designees [Repealed effective July 1, 2034]
(a) Upon designation by the Vermont Downtown Development Board under section 2793 of this title, a downtown development district and projects in a downtown development district shall be eligible for the following:
(1) Priority consideration by any agency of the State administering any State or federal assistance program providing funding or other aid to a municipal downtown area with consideration given to such factors as the costs and benefits provided and the immediacy of those benefits, provided the project is eligible for the assistance program.
(2) The Downtown and Village Center Tax Credit Program described in32 V.S.A. § 5930aa et seq.
(3) A planning grant, in an amount not to exceed $8,000.00 per site, for an initial site assessment of a suspected contaminated site, if the site otherwise qualifies under the community development block grant program in 10 V.S.A. chapter 29.
(4) Financing of transportation projects under the State Infrastructure Bank, created under 10 V.S.A. chapter 12.
(5) Assistance from the Secretary of Natural Resources for current owners and prospective purchasers who otherwise qualify under the Brownfield Property Cleanup Program set forth in 10 V.S.A. chapter 159, subchapter 3, or in the case of current owners, who are innocent owners. For the purposes of this subsection, an “innocent owner” is an owner who did not do any of the following:
(A) Hold an ownership interest in the property or in any related fixtures or appurtenances, excluding a secured lender’s holding indicia of ownership in the property primarily to assure the repayment of a financial obligation at the time of any disposal of hazardous materials on the property.
(B) Directly or indirectly cause or contribute to any releases or threatened releases of hazardous materials at the property.
(C) Operate, or control the operation, at the property of a facility for the storage, treatment, or disposal of hazardous materials at the time of the disposal of hazardous materials at the property.
(D) Dispose of, or arrange for the disposal of hazardous materials at the property.
(E) Generate the hazardous materials that were disposed of at the property.
(6) Technical assistance by the Department of Housing and Community Development with regard to planning and coordination issues, including adaptive reuse of buildings within the district, development of a marketing plan for the downtown district that includes a heritage tourism component, development of a program to encourage merchants and building owners to rehabilitate, restore, and improve building façades, and, in coordination with the Agency of Transportation, planning for multi-modal transportation needs of the community.
(7) Hospitality training to be arranged by the Department of Tourism and Marketing.
(8) Promotion of the downtown development district by the Department of Tourism and Marketing as part of the Department’s Integrated Marketing and Promotion Program.
(9) Consistent with the Department’s available resources and subject to the Department’s priority for ensuring public safety, technical support from the Department of Public Safety for the rehabilitation of older and historic buildings.
(10) A rebate of the cost of a qualified sprinkler system in an amount not to exceed $2,000.00 for building owners or lessees. Rebates shall be paid by the Department of Public Safety. To be qualified, a sprinkler system must be a complete automatic fire sprinkler system installed in accord with Department of Public Safety rules in an older or historic building that is certified for a State tax credit under 32 V.S.A. § 5930cc(a) or (b) and is located in a downtown development district. A total of no more than $40,000.00 of rebates shall be granted in any calendar year by the Department. If in any year applications for rebates exceed this amount, the Department shall grant rebates for qualified systems according to the date the building was certified for a State tax credit under 32 V.S.A. § 5930cc(a) or (b) with the earlier date receiving priority.
(11) Participation in the Downtown Transportation and Related Capital Improvement Fund Program established by section 2796 of this title.
(12) Priority for locating proposed State functions by the Commissioner of Buildings and General Services or other State officials, in consultation with the legislative body of a municipality and based on the suitability of the State function to a downtown location.
(13) A reallocation of receipts related to the tax imposed on sales of construction materials as provided in 32 V.S.A. § 9819.
(14) The authority to create a special taxing district pursuant to chapter 87 of this title for the purpose of financing both capital and operating costs of a project within the boundaries of a downtown development district.
(b) Prior to designation of a downtown as a downtown development district by the Vermont Downtown Development Board under section 2793 of this title, the Board may deem eligible any otherwise qualified owners or lessees of buildings within a downtown for the tax credits under 32 V.S.A. chapter 151, subchapter 11J if the Board finds that the legislative body of the municipality in which the property is located is intending to seek designation of the downtown as a downtown development district and has taken substantial actions and made substantial commitments in furtherance of that intent.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), § 5, eff. May 28, 2002; 2005, No. 183 (Adj. Sess.), § 15; 2021, No. 182 (Adj. Sess.), § 9, eff. July 1, 2022; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2794 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2001, No. 114 (Adj. Sess.), § 5, eff. May 28, 2002; 2005, No. 183 (Adj. Sess.), § 15; 2021, No. 182 (Adj. Sess.), § 9, eff. July 1, 2022; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2795 Considerations for competitive-based incentives [Repealed effective July 1, 2034]
In awarding competitive-based financial incentives under section 2794 of this title, including a rebate and tax incentives, or in awarding grants or other assistance from the Downtown Transportation and Related Capital Improvement Fund under section 2796 of this title, the Vermont Downtown Development Board shall give consideration to the following factors:
(1) the vacancy rate for existing buildings in the downtown district;
(2) the current or projected unemployment rate for the labor market area in which the municipality is located;
(3) ordinances or bylaws adopted by the municipality that support the preservation of the downtown’s vitality, including:
(A) an ordinance or bylaw requiring that new construction in the downtown development district shall be compatible with the buildings that contribute to the integrity of the district, in terms of materials, features, size, scale and proportion, and massing of buildings, and that exterior rehabilitation shall respect the historic and architectural significance and its exterior features; and
(B) a conditional use provision in a town zoning ordinance that supports adaptive reuse of historic properties;
(4) the integration of the proposed improvements with any coordinated plan for the downtown district and surrounding area;
(5) the degree of any deficiency in the downtown district of transportation infrastructure including parking facilities;
(6) the vulnerability of the downtown district to economic decline due to competing development in adjacent areas;
(7) the immediacy of the benefits provided and the desirability of prompt action to secure those benefits for a downtown district;
(8) the amount of investment from individual Vermont taxpayers that has been committed to projects in the downtown district. In considering this factor, the Board shall recognize the value of individuals participating in downtown projects by giving preference to applications for incentives from individual Vermont taxpayers, and projects coordinated by developers who have encouraged the participation of such investors.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 1999, No. 159 (Adj. Sess.), § 33; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2795 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 1999, No. 159 (Adj. Sess.), § 33; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2796 Downtown Transportation and Related Capital Improvement Fund [Repealed effective July 1, 2034]
(a) There is created a Downtown Transportation and Related Capital Improvement Fund, to be also known as the Fund, which shall be a special fund created under 32 V.S.A. chapter 7, subchapter 5, to be administered by the Vermont Downtown Development Board in accordance with this chapter to aid municipalities with designated downtown districts in financing capital transportation and related improvement projects to support economic development.
(b) The Fund shall be comprised of the following:
(1) such State or federal funds as may be appropriated by the General Assembly;
(2) any gifts, grants, or other contributions to the Fund;
(3) proceeds from the issuance of general obligation bonds.
(c) Any municipality with a designated downtown development district may apply to the Vermont Downtown Development Board for financial assistance from the Fund for capital transportation and related improvement projects within or serving the district. The Board may award to any municipality grants in amounts not to exceed $250,000.00 annually, loans, or loan guarantees for financing capital transportation projects, including construction or alteration of roads and highways, parking facilities, and rail or bus facilities or equipment, or for the underground relocation of electric utility, cable, and telecommunications lines, but shall not include assistance for operating costs. Grants awarded by the Board shall not exceed 80 percent of the overall cost of the project. The approval of the Board may be conditioned upon the repayment to the Fund of some or all of the amount of a loan or other financial benefits and such repayment may be from local taxes, fees, or other local revenues sources. The Board shall consider geographical distribution in awarding the resources of the Fund.
(d) The Fund shall be available to the Department of Housing and Community Development for the reasonable and necessary costs of administering the Fund. The amount projected to be spent on administration shall be included in the Department’s fiscal year budget presentations to the General Assembly.
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2003, No. 66, § 237b; 2005, No. 6, § 64, eff. March 26, 2005; 2015, No. 58, § E.805; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2796 Repealed
[Repealed]
(Added 1997, No. 120 (Adj. Sess.), § 1; amended 2003, No. 66, § 237b; 2005, No. 6, § 64, eff. March 26, 2005; 2015, No. 58, § E.805; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2797 Property Assessment Fund; brownfields and redevelopment; competitive program [Repealed effective July 1, 2034]
(a) There is created a Property Assessment Fund pursuant to 32 V.S.A. chapter 7, subchapter 5 to be administered by the Department of Housing and Community Development for the purpose of providing financing, on a competitive basis, to municipalities that demonstrate a financial need in order to determine and evaluate a full assessment of the extent and the cost of remediation of property, or in the case of an existing building, an assessment that supports a clear plan, including the associated costs of renovation to bring the building into compliance with State and local building codes.
(b) The Fund shall be composed of the following:
(1) State or federal funds that may be appropriated by the General Assembly.
(2) Any gifts, grants, or other contributions to the funds.
(3) Proceeds from the issuance of general obligation bonds.
(c) A municipality deemed financially eligible may apply to the fund for the assessment of property and existing buildings proposed for redevelopment, provided the Department finds that the property or building:
(1) is not likely to be renovated or improved without the preliminary assessment;
(2) when renovated or redeveloped, will integrate and be compatible with any applicable and approved regional development, capital, and municipal plans; is expected to create new property tax if developed by a taxable entity; and is expected to reduce pressure for development on open or undeveloped land in the local community or in the region.
(d) The Department shall distribute funds under this section in a manner that provides funding for assessment projects of various sizes in as many geographical areas of the State as possible and may require matching funds from the municipality in which an assessment project is conducted.
(Added 2003, No. 121 (Adj. Sess.), § 49, eff. June 8, 2004; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2797 Repealed
[Repealed]
(Added 2003, No. 121 (Adj. Sess.), § 49, eff. June 8, 2004; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2798 Designation decisions; nonappeal [Repealed effective July 1, 2034]
The designation decisions of the State Board under this chapter are not subject to appeal.
(Added 2013, No. 59, § 9; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2798 Repealed
[Repealed]
(Added 2013, No. 59, § 9; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
§ 2799 Repealed
[Repealed]
(Added 2021, No. 74, § H.6; repealed on July 1, 2024 by 2021, No. 74, § H.8; amended 2023, No. 78, § F.9, eff. July 1, 2023; repealed by 2023, No. 181 (Adj. Sess.), § 65(a), eff. July 1, 2034.)
Chapter 77 Construction; Condemnation
§ 2801 Aqueducts
(a) The selectboard of a town may procure the right to lay and maintain aqueducts and pipes across the land of any person when the public good and necessity require a new or additional supply of water for use in a town hall or watering trough on a public highway.
(b) When the selectboard is unable to agree with the owner of such land as to the necessity for taking or the compensation to be paid therefor, it shall proceed to secure such right, and have the question of the necessity for taking and the damages sustained thereby determined as provided for taking land for a townhouse. The title to the land so secured shall be valid and vest in the town for the purposes herein named.
(c) The title to the land so secured shall be valid and vest in the town for the purposes herein named.
§ 2802 Definitions
The words “building” or “municipal building” as used in this chapter include wharves and docks and the lands surrounding or appurtenant thereto necessary for a highway or for parking or other public purposes connected therewith.
(Added 1967, No. 313 (Adj. Sess.), § 4, eff. March 22, 1968.)
§ 2803 Building committee; vote of town or district
A municipality may vote to place the construction of a building to be erected for public purposes under the general supervision and control of a building committee.
§ 2804 Reserve funds; use
(a) At an annual or special meeting duly warned, a municipality may establish a reserve fund to be under the control and direction of the legislative branch of the municipality. The reserve fund shall be kept in a separate account and invested as are other public funds and may be expended for such purposes for which established, or when authorized by a majority of the voters present and voting at an annual or special meeting duly warned, for other purposes.
(b) If a reserve fund is established under subsection (a) of this section to pay a school district’s future school capital construction costs approved under 16 V.S.A. chapter 123, any funds raised by the district as part of its education spending to pay for those future costs shall be considered “approved school capital construction spending” in calculating excess spending under 32 V.S.A. § 5401(12). Districts shall submit to the Agency of Education annually a report of deposits into and expenditures from a school capital construction reserve fund. If the Agency of Education determines that any amount in the reserve fund has not been used for approved school capital construction within five years after deposit into the fund, then 150 percent of that amount shall be added to the district’s education spending in the then-current year for purposes of calculating the excess spending penalty. The definitions in 16 V.S.A. chapter 133 shall apply to this subsection.
(Amended 1997, No. 71 (Adj. Sess.), § 103, eff. March 11, 1998; 2005, No. 38, § 23; 2013, No. 92 (Adj. Sess.), § 271, eff. Feb. 14, 2014.)
§ 2805 Municipal buildings; condemnation; procedure
(a) When the location of a municipal building is determined and lands and grounds are needed or when a municipality votes to purchase additional lands or when, in the exercise of any of the powers or functions authorized by its charter or bylaws, it becomes necessary for public use and benefit to take, damage, or affect lands, and the owner refuses to release or convey the same to such municipality for a reasonable price, the mayor and aldermen of such city, the selectboard of such town, or the trustees of such village or the prudential committee of such fire district shall set out the necessary lands and cause the same to be surveyed.
(b) They shall appoint a time and place for hearing and give at least ten days’ notice thereof before such hearing to the persons interested, either personally or by written notice left at the residence of the owner or occupant of such lands.
(c) At such hearing they shall determine the damages sustained by such interested persons. The damages agreed upon or assessed shall be paid or tendered to such persons before taking possession of the lands.
(d) Nothing in this section shall be construed to authorize the taking, by condemnation proceedings, of property of any religious, charitable, or educational society, institution, or organization, unless held, owned, or used by it for commercial purposes, without the written consent of the trustees or governing body of such society, institution, or organization, unless two-thirds of the voters at an annual or special meeting duly warned for that purpose vote contrariwise.
§ 2806 Condemned land; notice to mortgagee; application of payment
When such lands are encumbered by mortgage, such municipality shall cause the same notice to be given to the mortgagee or assignee thereof as is required to be given to the owner, and the damages agreed upon or otherwise determined, as finally ascertained, shall be paid to the mortgagee or assignee. However, if the sum due on the mortgage is less than the damages awarded, the amount due on the mortgage shall be paid to the holder and the balance to the owner.
(Amended 2017, No. 74, § 103.)
§ 2807 Procedure for taking land
When the mayor and aldermen, selectboard, or trustees decide to take lands, in their order for that purpose, they shall fix a time and notify the owner or occupant thereof. Within such time he or she shall remove his or her buildings, fences, timber, wood, or trees, which, in the case of enclosed or improved lands, shall not, without the consent of the owner, be less than three months nor until compensation for damages to such lands is tendered or paid. If such obstructions are not removed within such time, the mayor and aldermen, selectboard, or trustees shall remove them at the expense of the town or village.
(Amended 2017, No. 74, § 104.)
§ 2808 Condemnation; record of orders and proceedings
Orders and proceedings of the mayor and aldermen, selectboard, and trustees, under the provisions of sections 2805-2807 of this title, with the survey of the lands taken, shall be recorded in the office of the clerk of the city, town, or village in which the land lies.
(Amended 2017, No. 74, § 105.)
§ 2809 Disagreement as to damages; reference
When the owner of such land does not accept the damages awarded by the mayor and aldermen, selectboard, or trustees, as the case may be, they may agree with him or her to refer the question of such damages to one or more disinterested persons, whose award shall be made in writing and shall be final.
§ 2810 Petition; appointment of commissioners
(a) When a person having an interest in such land is dissatisfied with the action of the mayor and aldermen, selectboard, or trustees in locating and setting it out or with the damages awarded therefor by them, he or she may apply by petition to the Superior Court for the county wherein such land lies within 60 days of the recording of the order of the mayor and aldermen, selectboard, or trustees, and any number of persons aggrieved may join in the petition.
(b) The petition with a citation shall be served on the clerk of the city, town, or village as a writ of summons requiring entry to be made therein within 21 days from the date of service.
(c) The court shall appoint three disinterested commissioners, who shall inquire into the necessity for locating and setting out such land and as to the amount of damages sustained by the persons interested therein.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 2811 Commissioners’ notice, hearing, and report; Superior Court order
(a) The commissioners shall give to such clerk and to the petitioners six days’ notice of the time and place of hearing. When they have completed their inquiries, they shall report to the court.
(b) Upon hearing, the court may accept or reject the report, in whole or in part, may make such orders as are necessary for locating and setting out such land and for the removal of obstructions thereon, may render judgment for the petitioners for such damages as they have severally sustained, may tax costs for either party, and may award execution in the premises.
(Amended 2017, No. 74, § 106.)
§ 2812 Title to vest on payment of damages
When the damages finally awarded are paid to the person entitled thereto, title to such lands or the right to damage or affect lands shall vest in such city, town, or village for such purposes.
§ 2813 Armories; appropriation
A municipality may appropriate sums of money towards the purchase or construction of an armory for use of the National Guard.
Chapter 79 Planning
§§ 2901-2930 Repealed
[Repealed]
1967, No. 334 (Adj. Sess.), § 2, eff. March 23, 1968.
§ 2931 Validation of certain commissions
A regional planning commission in full compliance with sections 2919-2922 of this title on May 31, 1965 shall be a qualified regional planning commission under this chapter in all respects, except that it shall be limited to the financial aid which was in effect for it on May 31, 1965.
(Added 1967, No. 188.)
§ 2932 Development Board; grants
The Development Board may with the approval of the Governor award a grant to an incorporated economic development district organized either on an intrastate or interstate basis for the purpose of matching federal funds made available by the Economic Development Administration of the U.S. Department of Commerce. No grant by the Development Board to a single district shall exceed $15,000.00.
(Added 1967, No. 160.)
Chapter 81 Zoning
§§ 3001-3027 Repealed
[Repealed]
1967, No. 334 (Adj. Sess.), § 2, eff. March 23, 1968.
§ 3028 Penalty
(a) The legislative body of a municipality may provide by ordinance for the enforcement of this chapter and of any ordinance or regulation made hereunder, and may fix penalties of not more than $50.00 for each violation. Each day in which a violation exists shall constitute a separate offense.
(b) No action may be brought under this section unless the alleged offender has had at least seven days’ notice that a violation exists. The notice shall be given by the administrative officer by hand or by certified mail with return receipt requested. The start of the seven days’ notice shall be determined by the date said return receipt was signed by or on behalf of the person deemed to be in violation.
(c) This section shall not be construed to limit or restrict the proper municipal authorities from acting under section 3024 of this title.
(Added 1967, No. 283 (Adj. Sess.), § 1, eff. March 14, 1968.)
Chapter 83 Building Inspectors and Regulation of Building
§ 3101 Bylaws and ordinances; penalties
(a) The mayor and board of aldermen of a city, the selectboard of a town, or the trustees of an incorporated village, may, in accordance with this chapter, establish codes and regulations for the construction, maintenance, repair, and alteration of buildings and other structures within the municipality. Such codes and regulations may include provisions relating to building materials, structural design, passageways, stairways and exits, heating systems, fire protection procedures, and such other matters as may be reasonably necessary for the health, safety, and welfare of the public, but excluding electrical installations subject to regulation under 26 V.S.A. chapter 15.
(b) Any code or regulation under subsection (a) of this section shall be adopted, amended, or repealed and enforced pursuant to the provisions of chapter 59 of this title.
(c) When any municipality adopts or amends a building code, it shall impose requirements consistent with the current rules and standards adopted by the Commissioner of Public Safety under 20 V.S.A. chapter 173, subchapter 2.
(d) Upon the adoption or amendment of any code or regulation, at least one copy shall be filed in the office of the building inspector, and the office of the municipal clerk.
(e) The General Assembly may incorporate amendments to the code into the ordinance of all municipalities which have adopted the code, or designate allowable exceptions to the code.
(f) On or before January 1, 1984, each municipality which has in effect a building code which is not consistent with the rules and standards adopted by the Commissioner of Labor, shall substitute for such code a code which is consistent.
(Amended 1967, No. 295 (Adj. Sess.), § 1, eff. March 20, 1968; 1969, No. 284 (Adj. Sess.), § 2, eff. date, see note set out below; 1973, No. 196 (Adj. Sess.),§§ 1, 2, eff. April 2, 1974; 1981, No. 121 (Adj. Sess.), § 6, eff. March 3, 1982; 2003, No. 141 (Adj. Sess.), § 10, eff. April 1, 2005; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 3102 Building inspectors
(a) Upon the adoption of any codes, rules, or regulations as provided in section 3101 of this title, the mayor and board of aldermen of a city, the selectboard of a town, or the trustees of an incorporated village shall appoint and may remove a building inspector, and may appoint and may remove a deputy building inspector, prescribe their duties, and fix their compensation.
(b) The building inspector and any deputy building inspector shall be a disinterested and competent person with experience in the construction of various types of buildings.
(Amended 1967, No. 295 (Adj. Sess.), § 2, eff. March 20, 1968; 2017, No. 74, § 107.)
§ 3103 Appointment; duties; powers
Any such ordinance may be amended or supplemented following the procedure for adoption in section 3101 of this title. At least three copies of any ordinance, as amended or supplemented, shall be filed, as provided in section 3101 of this title, in the office of the building inspector and three copies filed in the office of the municipal clerk for use by the public.
(Amended 1967, No. 295 (Adj. Sess.), § 3, eff. March 20, 1968.)
§ 3104 Examination by public
At least 30 days before the adoption of any such ordinance or any amendment or supplement thereto, at least three copies of the code or regulation referred to in section 3101 of this title shall be filed in the office of the building inspector and three copies in the office of the municipal clerk for use by the public.
(Added 1967, No. 295 (Adj. Sess.), § 4, eff. March 20, 1968.)
§ 3105 Public hearing; notice
(a) No such ordinance or amendments or supplements may become effective or be altered until after a public hearing at which interested parties and citizens may be heard.
(b) Notice of the time and place of the hearing shall be published in a newspaper of general circulation in the municipality at least 15 days before the holding of the hearing.
(Added 1967, No. 295 (Adj. Sess.), § 5, eff. March 20, 1968.)
§ 3106 Report; prosecutions; injunctions
A building inspector shall:
(1) make a detailed report of his or her doings to the board of aldermen, selectboard, or trustees, as the case may be, at least once in six months, showing the number of certificates of permit granted, the number refused, and such other information as may be of importance relating to the discharge of his or her duties; and
(2) inquire into and report to the municipal attorney or other designee of the legislative body of the municipality for prosecution, all violations of this chapter, and may apply, as building inspector, to a Superior judge for an injunction or other legal or equitable remedy in aid of his or her powers as he or she may be advised.
(Amended 2017, No. 93 (Adj. Sess.), § 23.)
§ 3107 Certificate of permit; filing
(a) Before the construction or alteration of a building, the owner, builder, or architect shall submit to the building inspector a comprehensive statement in writing of the material to be used and the mode of construction of the proposed building or alteration, with plans and specifications, if there are any. Work thereon shall not be begun until the owner has received from the inspector a certificate of permission specifying the material of which the outer walls and other covering of the roof of such building are to be composed, the street upon which, and the distance therefrom at which such building is to be placed. A copy of such certificate shall be filed in the office of the inspector under the date of its issue.
(b) Such certificate shall not be granted until the inspector is satisfied that such structure when completed will be properly built, and insofar as practicable of a fireproof construction; provided, however, that in those municipalities that have adopted the provisions of chapter 81 of this title, relating to municipal zoning, the building inspector, before issuing said building certificate, shall be satisfied that by the issuance of such certificate the zoning ordinance of said municipality will not be violated.
§ 3108 Inspector’s duties
The inspector shall daily examine the condition of buildings undergoing alteration or erection and serve notice in writing upon the builders, owners, or architects of such structures as he or she deems to be unsafe or insecure by reason of the mode and manner of construction or materials used in the construction thereof. He or she shall order such changes in the mode or manner of construction and the materials used as he or she deems necessary for the public safety and may order work to cease.
§ 3109 Appeals from orders
When a person is aggrieved by an order of a building inspector, that person or the person’s architect or builder may appeal to a board of arbitrators appointed as provided in section 3110 of this title, or to the Criminal Division of the Superior Court, at his or her election. The board of arbitrators or the court shall have the power to annul, amend, modify, or affirm the order of the building inspector. The appeal shall be taken within five days after the receipt of the inspector’s notice and order by the aggrieved party or his or her architect or builder. In case of an election to appeal to a board of arbitrators, it shall be deemed perfected by a written notice of appeal left with the building inspector personally, or at his or her office. In case of an election to appeal to the Criminal Division of the Superior Court, the appeal shall be deemed perfected by the filing with the court of a complaint. The taking of the appeal shall operate as a stay.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1971, No. 185 (Adj. Sess.), § 200, eff. March 29, 1972; 2009, No. 154 (Adj. Sess.), § 238; 2015, No. 97 (Adj. Sess.), § 57.)
§ 3110 Arbitrators; decision
The board of arbitrators shall be composed of two disinterested persons, residents of the municipality, one of whom shall be appointed by the appellant and one by the building inspector. If such arbitrators cannot agree, a third member shall be chosen by them. On failure to agree as to such third member, he or she shall be appointed by a Superior judge. A decision of a majority of the board of arbitrators thus composed, when reduced to writing, sworn to, and filed in the inspector’s office, shall be final and conclusive upon the parties. Upon the filing of such decision, work may be immediately resumed in accordance therewith. The expense of such arbitration shall be paid by the appellant.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967.)
§ 3111 Appeal; hearing; orders
When an appeal is taken under the provisions of section 3109 of this title, the judge shall forthwith inquire into the facts himself or herself or by a committee appointed by him or her, and make such order as he or she deems proper in the premises. In his or her discretion, he or she may tax costs in favor of the prevailing party and issue execution therefor. Upon the entry of judgment, work may be immediately resumed in accordance therewith.
§ 3112 Penalty
A person who violates a provision of this chapter or willfully disobeys a written order of a building inspector shall be fined not more than $200.00, provided such order has not been set aside or modified by a court or by a board of arbitrators, or by an order or decree of either such court or board of arbitrators made on appeal thereto.
§ 3113 Unsafe building; notice
A building inspector being informed that a structure or anything appurtenant thereto is unsafe shall inspect the same. If it appears to be unsafe, he or she shall forthwith notify, in writing, the owner, agent, or person having an interest therein to remove it or make it safe and secure. If it appears that such structure would be especially unsafe in case of fire, it shall be deemed dangerous and the inspector may affix in a conspicuous place upon its exterior walls a notice of its dangerous condition, which shall not be removed or defaced without authority from him or her.
§ 3114 Repair of unsafe structure
Before 12:00 p.m. of the day following the service of such notice, a person notified as provided in section 3113 of this title shall commence to secure or remove such structure, and shall employ sufficient workers speedily to secure or remove it. If the public safety so requires, and if the mayor and aldermen, selectboard, or trustees, as the case may be, so order, the inspector shall immediately enter upon the premises with the necessary workers and cause such structure to be shored up, taken down, or otherwise secured without delay. Such inspector shall cause a proper fence or boarding put up for the protection of passers-by at the expense of the owner in the manner provided in section 3116 of this title, and such expense may be recovered in a civil action on this statute.
§ 3115 Refusal to obey order; survey; report
When an owner, agent, or person interested in such unsafe structure refuses or neglects to comply with the requirements of such order within the time limited, a careful survey of the premises shall be made by a board consisting, in a city, of the city engineer, the chief engineer of the fire department, and one disinterested person to be appointed by the inspector, and, in a town or incorporated village, by a board consisting of a surveyor, the chief engineer of the fire department, and one disinterested person to be appointed by the inspector. When there is not a city engineer or chief engineer of the fire department, the mayor and board of aldermen, or the proper officers in such town or village, as the case may be, shall designate one or more officers or other suitable persons in place of the officers so named, as members of the board. A report of such survey shall be made in writing and a copy thereof served on such owner, agent, or other person interested.
§ 3116 Building taken down; penalty
When such report declares such structure to be unsafe, and when the owner, agent, or person interested continues such refusal or neglect, the inspector shall cause it to be taken down or otherwise made safe. The costs and charges incurred shall constitute a lien upon the land upon which such building is situated, and shall be enforced within the time and in the manner provided for the collection of taxes on land. For every day’s continuance of such refusal or neglect, the owner or person interested shall forfeit to the city, town, or incorporated village in which such structure is situated not more than $50.00 nor less than $10.00, to be recovered in a civil action on this statute.
§ 3117 Appeal from order
An owner or person interested who is aggrieved by such order may appeal as provided in the case of a person aggrieved by an order of a building inspector. However, the provisions of this section shall not prevent the municipality from recovering the forfeiture provided in section 3116 of this title from the date of the service of the original notice, unless the order is annulled by the board of arbitration or a Superior Court judge, as the case may be.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 183.)
§ 3118 Notice to nonresident owner
When the owner, agent, or person interested lives out of the State, notice may be served upon him or her by a proper officer, whose return of service shall be sufficient evidence thereof.
§ 3119 Powers of judge
The presiding judge of the Superior Court may restrain the construction, alteration, maintenance, or use of a building or structure in violation of the provisions of an ordinance or bylaws of a municipality, and order its removal or abatement as a nuisance. Such judge may restrain the further construction, alteration, or repair of a building or structure reported to be unsafe under a survey authorized by section 3115 of this title, until the matter is determined as provided in section 3117 of this title.
(Amended 1971, No. 185 (Adj. Sess.), § 236; 1973, No. 193 (Adj. Sess.), § 3.)
§ 3120 Severability
If any provision of this act or its application to any person or circumstances is invalid, the remainder of the act or the application of the provision to other persons or circumstances shall not be affected.
(Added 1967, No. 295 (Adj. Sess.), § 6, eff. March 20, 1968.)
Chapter 85 Urban Renewal
§ 3201 Definitions
The following terms wherever used or referred to in this chapter shall have the following meanings, unless a different meaning is clearly indicated by the context:
(1) “Agency” or “urban renewal agency” shall mean a public agency created by section 3220 of this title.
(2) “Area of operation” shall mean the area within the corporate limits of the municipality and the area within five miles of such limits, except that it shall not include any area which lies within the territorial boundaries of another incorporated city or town unless a resolution shall have been adopted by the governing body of such other city or town declaring a need therefor.
(3) “Blighted area” shall mean an area which, by reason of the presence of a substantial number of slum, deteriorated, or deteriorating structures; predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; insanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; or the existence of conditions which endanger life or property by fire and other causes; or any combination of such factors, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use. If such blighted area consists of open land the conditions contained in the proviso in subsection 3207(d) of this title shall apply. Any disaster area referred to in subsection 3207(g) of this title shall constitute a “blighted area.” No area shall be determined to be a blighted area solely or primarily because its condition and value for tax purposes are less than the condition and value projected as the result of the implementation of any State, municipal, or private redevelopment plan.
(4) “Board” or “commission” shall mean a board, commission, department, division, office, body, or other unit of the municipality.
(5) “Bonds” shall mean any bonds, including refunding bonds, notes, interim certificates, certificates of indebtedness, debentures, or other obligations.
(6) “Clerk” shall mean the clerk or other official of the municipality who is the custodian of the official records of such municipality.
(7) “Federal government” shall include the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America.
(7a) “Housing authority” means a housing authority established under chapter 113 of this title.
(8) “Local governing body” shall mean the council or other legislative body charged with governing the municipality.
(9) “Mayor” shall mean the mayor of a municipality or other officer or body having the duties customarily imposed upon the executive head of a municipality.
(10) “Municipality” shall mean any city, village, or town in the State.
(11) “Obligee” shall include any bondholder, agents, or trustees for any bondholders, or lessor demising to the municipality property used in connection with an urban renewal project, or any assignee or assignees of such lessor’s interest or any part thereof, and the federal government when it is a party to any contract with the municipality.
(12) “Person” shall mean any individual, firm, partnership, corporation, company, association, joint stock association, or body politic; and shall include any trustee, receiver, assignee, or other person acting in a similar representative capacity.
(13) “Public body” shall mean the State or any municipality, township, village, board, commission, authority, district, or any other subdivision or public body of the State.
(14) “Public officer” shall mean any officer who is in charge of any department or branch of the government of the municipality relating to health, fire, building regulations, or to other activities concerning dwellings in the municipality.
(15) “Real property” shall include all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest, right, and use, legal or equitable therein, including terms for years and liens by way of judgment, mortgage, or otherwise.
(15a) “Related activities” means:
(A) planning work for the preparation of a general neighborhood renewal plan, or for the preparation or completion of a community-wide plan or program under section 3208 of this title; and
(B) the functions related to the acquisition and disposal of real property under subdivision 3209(4) of this title.
(16) “Slum area” shall mean an area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, age, or obsolescence; inadequate provision for ventilation, light, air, sanitation, or open spaces; high density of population and overcrowding; or the existence of conditions which endanger life or property by fire and other causes; or any combination of such factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals, or welfare.
(17) “Urban renewal area” means a slum area or a blighted area or a combination thereof which the local governing body designates as appropriate for an urban renewal project.
(18) “Urban renewal plan” means a plan, as it exists from time to time, for an urban renewal project, which plan:
(A) shall conform to the general plan for the municipality as a whole except as provided in subsection 3207(g) of this title and shall be consistent with definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements;
(B) shall be sufficiently complete to indicate such land acquisition, demolition and removal of structures and redevelopment, and such rehabilitation as may be proposed to be carried out in the urban renewal area, to indicate proposed zoning and planning changes, if any, land uses, maximum densities, and building requirements, and to indicate in general terms the types of public improvements and proposal for redevelopment to be permitted or required; and
(C) may include such additional materials as may from time to time be required by federal laws, regulations, and administrative requirements.
(19) “Urban renewal project” may include undertakings and activities of a municipality in an urban renewal area for the elimination and for the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan. Such undertakings and activities may include:
(A) acquisition of a slum area or a blighted area or portion thereof;
(B) demolition and removal of buildings and improvements;
(C) installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the urban renewal area the urban renewal objectives of this chapter in accordance with the urban renewal plan;
(D) disposition of any property acquired in the urban renewal area, including sale, initial leasing, or retention by the municipality itself, at its fair value for uses in accordance with urban renewal plan;
(E) acquisition of real property in the urban renewal area which, under the urban renewal plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair or rehabilitation of the structures for guidance purposes, and resale of the property;
(F) acquisition, without regard to any requirement that the area be a slum or blighted area, of air rights in an area consisting principally of land in highways, railway or subway tracks, bridge or tunnel entrances, or other similar facilities which have a blighting influence on the surrounding area and over which air rights sites are to be developed for the elimination of those blighting influences and for the provision of housing and related facilities and uses designed specifically for, and limited to, families and individuals of low or moderate income;
(G) construction of foundations and platforms necessary for the provision of air rights sites of housing and related facilities and uses designed specifically for, and limited to, families and individuals of low or moderate income;
(H) related activities as defined in subdivision (15a) of this section;
(I) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the urban renewal plan; and
(J) acquisition of any other real property in the urban renewal area where necessary to eliminate unhealthful, insanitary, or unsafe conditions, lessen density, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities.
(Amended 1963, No. 2, § 4, eff. Feb. 14, 1963; 1966, No. 69 (Sp. Sess.), §§ 1, 2, eff. March 14, 1966; 2005, No. 111 (Adj. Sess.), § 2.)
§ 3202 Repealed
[Repealed]
1963, No. 2, § 2, eff. Feb. 14, 1963.
§ 3203 Findings and declarations of necessity
(a) It is hereby found and declared that there exist in municipalities of the State slum and blighted areas, as herein defined, which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the State; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability imposing onerous municipal burdens which decrease the tax base and reduce tax revenues, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, aggravates traffic problems and substantially impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of State policy and State concern in order that the State and its municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities.
(b) It is further found and declared that certain slum or blighted areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this chapter, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation; that other areas or portions thereof may, through the means provided in this chapter, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied, or prevented; and that salvable slum and blighted areas can be conserved and rehabilitated through appropriate public action as herein authorized, and the cooperation and voluntary action of the owners and tenants of property in such areas.
(c) It is further found and declared that the powers conferred by this chapter are for public uses and purposes for which public money may be expended and the power of eminent domain and police power exercised; and that the necessity in the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination.
§ 3204 Encouragement of private enterprise
A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this chapter, shall afford maximum opportunity, consistent with the sound needs of the municipality as a whole, to the rehabilitation or redevelopment of the urban renewal area by private enterprise. A municipality shall give consideration to this objective in exercising its powers under this chapter, including the formulation of a workable program, the approval of urban renewal plans and community-wide plans or programs for urban renewal and general neighborhood renewal plans consistent with the general plan of the municipality, the exercise of its zoning powers, the enforcement of other laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, the disposition of any property acquired, and the provision of necessary public improvements.
(Amended 1966, No. 69 (Sp. Sess.), § 3, eff. March 14, 1966.)
§ 3205 Workable program
A municipality for the purposes of this chapter may formulate for the municipality a workable program for utilizing appropriate private and public resources to eliminate and prevent the development or spread of slums and urban blight, to encourage needed urban rehabilitation, to provide for the redevelopment of slum and blighted areas, or to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. Such workable program may include provision for: the prevention of the spread of blight into areas of the municipality which are free from blight through diligent enforcement of housing, zoning, and occupancy controls and standards; the rehabilitation or conservation of slum and blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements, by encouraging voluntary rehabilitation and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and the clearance and redevelopment of slum and blighted areas or portions thereof.
§ 3206 Finding of necessity by local governing body
No municipality shall exercise the authority hereafter conferred upon municipalities by this chapter until after it has voted by a majority of the voters present and voting on the question at a regular or special meeting duly warned for such purpose to adopt a resolution finding that: (1) one or more slum or blighted areas exist in such municipality; and (2) the rehabilitation, conservation, redevelopment, or a combination thereof, of such area or areas is necessary in the interest of the public health, safety, morals, or welfare of the residents of such municipality.
§ 3207 Preparation and approval of urban renewal projects and urban renewal plans
(a) A municipality shall not approve an urban renewal project for an urban renewal area unless the governing body has, by resolution, determined such area to be a slum area or a blighted area or a combination thereof and designated such area as appropriate for an urban renewal project. The local governing body shall not approve an urban renewal plan until a general plan for the municipality has been prepared. A municipality shall not acquire real property for an urban renewal project unless the local governing body has approved the urban renewal project in accordance with subsection (d) of this section.
(b) The municipality may itself prepare or cause to be prepared an urban renewal plan, or any person or agency, public or private, may submit such a plan to a municipality. Prior to its approval of an urban renewal project, the local governing body shall submit such plan to the planning commission of the municipality, if any, for review and recommendations as to its conformity with the general plan for the development of the municipality as a whole. The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within 30 days after receipt of the plan for review. Upon receipt of the recommendations of the planning commission or, if no recommendations are received within said 30 days, then without such recommendations, the local governing body may proceed with the hearing on the proposed urban renewal project prescribed by subsection (c) of this section.
(c) The local governing body shall hold a public hearing on an urban renewal project, after public notice thereof by publication in a newspaper having a general circulation in the area of operation of the municipality. The notice shall describe the time, date, place, and purpose of the hearing, shall generally identify the urban renewal area covered by the plan, and shall outline the general scope of the urban renewal project under consideration.
(d) Following such hearing, the local governing body may approve an urban renewal project if it finds that (1) a feasible method exists for the location of families who will be displaced from the urban renewal area in decent, safe, and sanitary dwelling accommodations within their means and without undue hardship to such families; (2) the urban renewal plan gives due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety, and welfare of children residing in the general vicinity of the site covered by the plan; (3) the urban renewal plan conforms to the general plan of the municipality as a whole; and (4) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; provided, that if the urban renewal area consists of an area of open land to be acquired by the municipality, such area shall not be so acquired unless (A) if it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe, and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas, including other portions of the urban renewal area; that the conditions of blight in the area and the shortage of decent, safe, and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and the acquisition of the area for residential uses is an integral part of an essential to the program of the municipality; or (B) if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, with acquisition may require the exercise of governmental action, as provided in this chapter, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such favors or other conditions which retard development of the area.
(e) An urban renewal plan may be modified at any time; provided, that if modified after the lease or sale by the municipality of real property in the urban renewal project area, such modification may be conditioned upon such approval of the owner, lessee, or successor in interest as the municipality may deem advisable and in any event shall be subject to such rights at law or in equity as a lessee or purchaser, or his successor or successors in interest, may be entitled to assert.
(f) Upon the approval by a municipality by a vote of a majority of the voters present and voting on the question at a regular or special meeting duly warned for that purpose of an urban renewal plan or of any modification thereof, such plan or modification shall be deemed to be in full force and effect for the respective urban renewal area and the municipality may then cause such plan or modification to be carried out in accordance with its terms.
(g) Notwithstanding any other provisions of this chapter, where the local governing body certifies that an area is in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm, or other catastrophe respecting which the government of the State has certified the need for disaster assistance under Public Law 875, eighty-first Congress, or other federal law, the local governing body may approve an urban renewal plan and an urban renewal project with respect to such area without regard to the provisions of subsection (d) of this section and the provisions of this section requiring a general plan for the municipality and a public hearing on the urban renewal project.
(Amended 1966, No. 69 (Sp. Sess.), § 4, eff. March 14, 1966.)
§ 3208 Neighborhood and community-wide plans
(a) A municipality or a planning commission may prepare a general neighborhood renewal plan for an urban renewal area, together with any adjoining areas having specially related problems, which may be of such scope that urban renewal activities may have to be carried out in stages. The plan may include a preliminary plan which:
(1) outlines the urban renewal activities, proposed for the areas involved;
(2) provides a framework for the preparation of urban renewal plans; and
(3) indicates generally the land uses, population density, building coverage, prospective requirements for rehabilitation, and improvement of property and portions of the area contemplated for clearance and redevelopment.
A general neighborhood renewal plan shall, in the determination of the local governing body, conform to the general plan of the locality as a whole and the workable program of the municipality.
(b) A municipality or planning commission may prepare or complete a community-wide plan or program for urban renewal which shall conform to the general plan for the development of the municipality as a whole and may include identification of slum or blighted areas, measurement of blight, determination of resources needed and available to renew those areas, identification of potential project areas and types of action contemplated, and scheduling of urban renewal activities.
(Added 1966, No. 69 (Sp. Sess.), § 5, eff. March 14, 1966.)
§ 3209 Powers
Every municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others herein granted:
(1) to undertake and carry out urban renewal projects within its area of operation; and to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under this chapter; and to disseminate slum clearance and urban renewal information;
(2) to provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities, or other facilities for or in connection with an urban renewal project; to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of an urban renewal project, and to include in any contract let in connection with such a project, provisions to fulfill such of said conditions as it may deem reasonable and appropriate;
(3) within its area of operation, to enter into any building or property in any urban renewal area in order to make inspections, surveys, appraisals, soundings, or test borings, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire by purchase, lease, option, gift, grant, bequest, devise, eminent domain, or otherwise, any real property, or personal property for its administrative purposes, together with any improvements thereon; to hold, improve, clear, or prepare for redevelopment any such property; to mortgage, pledge, hypothecate, or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purposes of this chapter; provided, however, that no statutory provision with respect to the acquisition, clearance, or disposition of property by public bodies shall restrict a municipality or other public body exercising powers hereunder, in the exercise of such functions with respect to an urban renewal project, unless the Legislature shall specifically so state;
(4) with the approval of the local governing body, (A) before approval of an urban renewal plan, or approval of any modifications of the plan, to acquire real property in an urban renewal area, demolish and remove any structures on the property, and pay all costs related to the acquisition, demolition, or removal, including any administrative or relocation expenses; and (B) to assume the responsibility to bear any loss that may arise as the result of the exercise of authority under this subsection if the real property is not made part of the urban renewal project;
(5) to invest any urban renewal project funds held in reserve or sinking funds or any such funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to redeem such bonds as have been issued pursuant to section 3214 of this title at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be cancelled;
(6) to borrow money and to apply for and accept advances, loans, grants, contributions, and any other form of financial assistance from the federal government, the State, county, or other public body, or from any sources, public or private, for the purposes of this chapter, and to give such security as may be required and to enter into and carry out contracts in connection therewith. A municipality may include in any contract for financial assistance with the federal government for an urban renewal project such conditions imposed pursuant to federal laws as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of this chapter;
(7) within its area of operation, to make or have made all surveys and plans necessary to the carrying out of the purposes of this chapter and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify, and amend such plans. Such plans may include: (A) a general plan for the locality as a whole, (B) urban renewal plans, (C) preliminary plans outlining urban renewal activities for neighborhoods to embrace two or more urban renewal areas, (D) plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements, (E) plans for the enforcement of State and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements, (F) appraisals, title searches, surveys, studies, and other plans and work necessary to prepare for the undertaking of urban renewal projects and to develop, test, and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of slums and urban blight and developing and demonstrating new or improved means of providing housing for families and persons of low income and to apply for, accept, and utilize grants of funds from the federal government for such purposes;
(8) to prepare plans for and assist in the relocation of persons, including individuals, families, business concerns, nonprofit organizations, and others, displaced from an urban renewal area, and to make relocation payments to or with respect to such persons for moving expenses and losses of property, including the making of such payments financed by the federal government;
(9) to appropriate such funds and make such expenditures as may be necessary to carry out the purposes of this chapter, and to levy taxes and assessments for such purposes; to zone or rezone any part of the municipality or make exceptions from building regulations; and to enter into agreements with a housing authority or an urban renewal agency vested with urban renewal project powers under section 3219 of this title, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by such municipality pursuant to any of the powers granted by this chapter;
(10) to close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places; and to plan or replan any part of the municipality;
(11) within its area of operation, to organize, coordinate, and direct the administration of the provisions of this chapter as they apply to such municipality in order that the objective of remedying slum and blighted areas and preventing the causes thereof within such municipality may be most effectively promoted and achieved, and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out such purpose most effectively; and
(12) to exercise all or any part or combination of powers herein granted.
(Amended 1966, No. 69 (Sp. Sess.), § 6, eff. March 14, 1966.)
§ 3210 Eminent domain; authority; survey
(a) A municipality shall have the right to acquire by condemnation a fee simple title or any other interest in real property which it may determine necessary for or in connection with an urban renewal project under this chapter. The powers conferred upon municipalities under this section shall be considered “urban renewal project powers” as defined in subsection 3219(b) of this title and the term “municipality,”, as used in this section, shall mean the agency, board, commissioner or officers having such powers under subsection 3219(a) of this title. The municipality shall set out the necessary lands and cause them to be surveyed. An urban renewal plan approved under subsection 3207(d) of this title may be considered to constitute such a survey.
(b) Unless two-thirds of the voters present and voting thereon at an annual or special meeting duly warned for that purpose vote otherwise, nothing in this section shall be construed to authorize the taking, by condemnation proceedings, of property of any religious, charitable, or educational society, institution, or organization, unless held or used by it for commercial purposes, without the written consent of the trustees or the governing body of such society, institution, or organization. Property already devoted to a public use may be acquired hereunder but no real property belonging to the State or any political subdivision thereof shall be acquired without its consent.
(Amended 1963, No. 2, § 3, eff. Feb. 14, 1963; 1964, No. 9 (Sp. Sess.), § 1, eff. March 5, 1964.)
§ 3211 Determination of necessity
(a) After completion of such survey, the municipality shall petition a Superior Court judge, setting forth therein that it proposes to take certain land or rights therein and describing such lands or rights, and the survey shall be annexed to the petition and made a part thereof. The petition shall set forth the purposes for which the land or rights are desired, and shall contain a request that the judge fix a time and place when the judge, or some other Superior Court judge, will hear all parties concerned and determine whether such taking is necessary.
(b) The Superior Court judge to whom the petition is presented shall fix the time for hearing, which shall not be more than 60 nor less than 40 days from the date the judge signs such order. Likewise, the judge shall fix the place for hearing, which shall be the county courthouse or any other place within the county in which the land in question is located. If the Superior Court judge to whom the petition is presented cannot hear the petition at the time set therefor, the judge shall call upon the Chief Superior Judge to assign another Superior Court judge to hear the cause at the time and place assigned in the order.
(c) Notice of hearing on the petition, which shall include the name of the city, town, or village in which the lands to be taken or affected are located, the names of the persons having an interest in the lands, a brief statement identifying the urban renewal projects contemplated including its location, and the date, time, and place of hearing shall be published in a newspaper having general circulation in the city, town, or village in which the lands lie, once a week for three consecutive weeks on the same day of the week, the last publication to be not less than five days before the hearing date, and a complete copy of the original petition, together with a copy of the court’s order fixing the time and place of hearing, and a copy of the survey shall be placed on file in the clerk’s office of the city, town, or village in which the land included in the survey lies. A copy of the petition, together with the court’s order fixing the time and place of hearing, shall be served upon each person owning or having an interest in land to be purchased or condemned like a summons by an officer authorized to make service of process under Vermont statutes and residing in the county in which the petition is to be served, or, on absent defendants in such manner as the Supreme Court may by rule provide for service of process in civil actions. If the service on any defendant is impossible, upon affidavit of the sheriff, deputy sheriff, or constable attempting service, stating that the location of the defendant within or without the State is unknown and that he or she has no known agent or attorney in the State of Vermont upon which service may be made, and upon affidavit of an officer of the municipality that diligent inquiry has been made to find the location of the defendant, the publication herein provided shall be considered sufficient service on the defendant. Petitions shall be returnable to the court on the tenth day next preceding the date set for hearing thereon. Compliance with the provisions hereof shall constitute sufficient service upon and notice to any persons owning or having any interest in the land proposed to be taken or affected.
(d) At the time and place appointed for the hearing, the court consisting of the Superior Court judge signing the order or such other Superior Court judge as may be assigned and the two assistant judges of the county in which the hearing is held shall hear all persons interested and wishing to be heard. If any person owning or having an interest in the land to be taken or affected appears and objects to the necessity of taking the land included within the survey or any part thereof, then the court shall require the municipality to proceed with the introduction of evidence of the necessity of such taking. The court may cite in additional parties in its discretion, shall make findings of fact, and shall file the same. The court shall, by its order, determine whether the taking of such land and rights is necessary and may modify the proposed taking in such respects as the court may consider proper.
(e) An appeal may be taken to the Supreme Court by any party aggrieved in such manner as the Supreme Court may by rule provide for appeals from Superior Courts. If an appeal is taken, all proceedings shall be stayed until final disposition of the appeal. If no appeal is taken within the time provided for or, if appeal is taken, upon final disposition thereof, a copy of the order of the court shall be placed on file in the office of the clerk of the city, town, or village where the urban renewal project is located and within a period of two years from the final order the municipality may institute proceedings for the condemnation of the land included in the survey as finally approved by the court without further hearing or consideration of the question of the necessity of such taking.
(f) In considering the issue of necessity, the Superior Court and assistant judges shall, to the extent constitutionally permitted, give effect to the legislative determinations made in this chapter and to the determinations made by the voters and appropriate municipal authorities under this chapter. The court shall not give weight to a projected increase in economic value of the subject property solely or primarily because its condition and value for tax purposes are less than the condition and value projected as the result of the implementation of any State, municipal, or private redevelopment plan.
(Added 1964, No. 9 (Sp. Sess.), § 2, eff. March 5, 1964; amended 1971, No. 185 (Adj. Sess.), § 201, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2005, No. 111 (Adj. Sess.), § 3; 2021, No. 147 (Adj. Sess.), § 27, eff. May 31, 2022.)
§ 3212 Determination of compensation; payment; proceeds from bonding
(a) Following the final determination of the necessity of the taking, the municipality may proceed to acquire such lands. Whenever a municipality and an owner of land or rights agree as to the amount of compensation to be paid therefor, the municipality may take possession of the land or rights and proceed with the work for which it is taken upon making the agreed payment therefor. When an owner and the municipality are unable to agree on the amount of compensation to be paid therefor, and if the municipality desires to proceed with the taking thereof, it shall appoint a time and place for hearing and give at least ten days’ notice thereof before such hearing to the persons interested, either personally or by written notice left at the residence of the owner or occupants of such lands. At such hearing it shall hear any person having an interest in such land and desiring to be heard. Within 20 days thereafter, it shall by order assess the damages sustained by such interested persons. The municipality shall file a copy of such order for record in the office of the clerk of the city, town, or village in which the land lies, and shall deliver to each interested person a copy of that portion of the order directly affecting such person and shall pay or tender 95 percent of the award to each person entitled thereto which may be accepted, retained, and disposed of to his or her own use without prejudice to such person’s right of appeal as hereafter provided. Within ten days after the expiration of the period for taking an appeal from the amount of the award, the municipality shall pay or tender the remaining five percent to each person entitled thereto who has not appealed from said award. Upon the payment or tender of 95 percent of the award as above provided, the municipality may take possession of such land and proceed with the work for which it is taken. When an appeal has been taken by any person having an interest in any property, the remaining five percent awarded on account of the taking of such property shall be retained by the municipality pending final disposition of the appeal.
(b) When a person having an interest in the land is dissatisfied with the damages awarded therefor, the person may appeal to the Superior Court of the county wherein the land lies within 90 days of the recording of the order of the municipality. Any number of persons aggrieved may join in the appeal. Each of the appellants shall be entitled to a trial by jury.
(c) When the award made by the municipality is upheld, the court shall tax costs against the appellant, and, after deduction of taxed costs, the municipality shall forthwith pay appellant the balance, if any, of the five percent of award withheld, and, if such five percent of award withheld is insufficient to pay such costs, appellant shall pay the municipality such amounts at such time as the court may direct. When the appellant is allowed a sum greater than was awarded by the municipality, the court shall tax costs against the municipality, the municipality shall forthwith pay appellant the five percent of award withheld, and the municipality shall pay appellant such further amounts at such time as the court may direct.
(d) The full faith and credit of the municipality shall be pledged to the payment of all amounts awarded by such municipality or by order of the court and, if the funds of the municipality shall be insufficient to pay the amounts, the full faith, credit, and taxing power of the city, town, or village in which the applicable lands lie shall be pledged to such payment to the extent of the insufficiency. The local governing body of any city, town, or village may raise money by taxation to pay such amounts as the municipality lacks funds to pay, irrespective of any tax rate limits imposed by any general or special law. No obligation of a city, town, or village under this section shall be considered to be indebtedness for the purpose of any debt limit imposed by any general or special law.
(e) Title to the lands taken, or rights acquired, under this section shall vest in the municipality upon the filing for record of the municipality’s order under subsection (a) of this section, unless previously acquired by deed or other appropriate instrument.
(f) The legality of any proceedings hereunder shall not be affected as to any person by a deficiency in the notice to any other person.
(g) If the necessity of the taking of any land for an urban renewal project is not sustained by the court, or if the taking of any such land is held to be invalid, the validity of bonds issued under subsection 3217(d) of this title shall not be affected; and the proceeds thereof may be expended for any lawful expenses of the project, and any excess proceeds may be expended for the lawful expenses of any other urban renewal project or for the payment of the principal of and interest on any outstanding general obligation of the city, town, or village issued for any purpose.
(1964, No. 9 (Sp. Sess.), § 3, eff. March 5, 1964; amended 1965, No. 8; 1971, No. 185 (Adj. Sess.), § 202, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 19, eff. Jan. 1, 1998.)
§ 3213 Disposal of property in urban renewal area
(a)(1) A municipality may sell, lease, or otherwise transfer real property or any interest therein acquired by it, and may enter into contracts with respect thereto, in an urban renewal area for residential, recreational, commercial, industrial, or other uses or for public use, or may retain such property or interest for public use, in accordance with the urban renewal plan, subject to such covenants, conditions, and restrictions, including covenants running with the land, as it may deem to be necessary or desirable to assist in preventing the development or spread of future slums or blighted areas or to otherwise carry out the purposes of this chapter; provided, that such sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the urban renewal plan by vote of the municipality as provided in subsection 3207(f) of this title.
(2) The purchasers or lessees and their successors and assigns shall be obligated to devote such real property only to the uses specified in the urban renewal plan, and may be obligated to comply with such other requirements as the municipality may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on such real property required by the urban renewal plan.
(3) Such real property or interest shall be sold, leased, otherwise transferred, or retained at not less than its fair value for uses in accordance with the urban renewal plan. In determining the fair value of real property for uses in accordance with the urban renewal plan, a municipality shall take into account and give consideration to the uses provided in such plan; the restrictions upon, and the covenants, conditions, and obligations assumed by the purchaser or lessee or by the municipality retaining the property; and the objectives of such plan for the prevention of the recurrence of slum or blighted areas.
(4) The municipality in any instrument of conveyance to a private purchaser or lessee may provide that such purchaser or lessee shall be without power to sell, lease, or otherwise transfer the real property without the prior written consent of the municipality until he or she has completed the construction of any or all improvements which he or she has obligated himself or herself to construct thereon.
(5) Real property acquired by a municipality which, in accordance with the provisions of the urban renewal plan, is to be transferred, shall be transferred as rapidly as feasible in the public interest consistent with the carrying out of the provisions of the urban renewal plan.
(6) Any contract for such transfer and the urban renewal plan, or such part or parts of such contract or plan as the municipality may determine, may be recorded in the land records of the municipality in such manner as to afford actual or constructive notice thereof.
(b) A municipality may dispose of real property in an urban renewal area to private persons only under such reasonable competitive bidding procedures as it shall prescribe or as hereinafter provided in this subsection. A municipality may, by public notice by publication in a newspaper having a general circulation in the community, 30 days prior to the execution of any contract to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite proposals from and make available all pertinent information to private redevelopers or any persons interested in undertaking to redevelop or rehabilitate an urban renewal area, or any part thereof. Such notice shall identify the area, or portion thereof, and shall state that proposals shall be made by those interested within 30 days after the date of publication of said notice, and that such further information as is available may be obtained at such office as shall be designated in said notice. The municipality shall consider all such redevelopment or rehabilitation proposals and the financial and legal ability of the persons making such proposals to carry them out, and may negotiate with any persons for proposals for the purchase, lease, or other transfer of any real property acquired by the municipality in the urban renewal area. The municipality may accept such proposal as it deems to be in the public interest and in furtherance of the purposes of this chapter; provided, that notification of intention to accept such proposal shall be filed with the governing body not less than 30 days prior to any such acceptance. Thereafter, the municipality may execute such contract in accordance with the provisions of subsection (a) of this section and deliver deeds, leases, and other instruments and take all steps necessary to effectuate such contract.
(c) A municipality may temporarily operate and maintain real property acquired in an urban renewal area pending the disposition of the property as authorized in this chapter, without regard to the provisions of subsection (a) of this section, for such uses and purposes as may be deemed desirable even though not in conformity with the urban renewal plan.
(d) Any real property acquired under subdivision 3209(4) of this title may be disposed of without regard to other provisions of this section if the local governing body consents to the disposal.
(e) Notwithstanding any other provisions of this chapter, where the municipality is situated in an area designated as a redevelopment area or economic development center under the federal Area Redevelopment Act or other federal law enacted to assist in the economic development of areas suffering substantial and persistent unemployment or underemployment, land in an urban renewal project area designated under the urban renewal plan for industrial or commercial use may be disposed of to any public body or nonprofit corporation for later disposition as promptly as practicable by the public body or corporation, for redevelopment in accordance with the urban renewal plan, and only the purchaser from or lessee of the public body or corporation and their assignees shall be required to assume the obligation of beginning the building of improvements within a reasonable time. Any disposition of land to a public body or corporation under this subsection shall be made at its fair value for uses in accordance with the urban renewal plan.
(f) Notwithstanding anything to the contrary contained in this chapter, a municipality may sell, lease, or otherwise transfer real property or any interest therein acquired by it for urban renewal purposes:
(1) To any person designated by the municipality and approved by the local governing body as a qualified eligible sponsor, if:
(A) The municipality publishes, in at least one newspaper of general circulation in the municipality at least ten days before the sale, lease, or other disposition, a notice which includes a statement of the identity of the proposed sponsor and his or her proposed use or re-use of the urban renewal area or of the applicable portion thereof. That notice shall be in such form and manner as may be prescribed by the municipality.
(B) The proposed sponsor agrees to pay not less than the minimum price or rental fixed by the municipality for the real property.
(C) The proposed sponsor matches any bid higher than that minimum price or rental.
(D) And the sale, lease, or other disposition requires effectuation of the purpose thereof within a definite and reasonable time.
(E) If that sponsor does not agree to pay the minimum price or rental fixed by the municipality or fails to match any higher bid than that minimum price or rental, municipality may, in its sole discretion and only if consistent with the urban renewal plan, sell or lease any such real property or any interest therein to any other person bidding under provisions of subsection (b) of this section.
(2) To any person designated by the municipality and approved by the local governing body as a qualified sponsor, without bids or other requirements of subsection (b) of this section, if:
(A) the price or rental to be paid by the sponsor for the property and all other essential terms and conditions of the sale, lease, or other disposition are included in the notice published by the municipality under paragraph (A) of subdivision (1) of this section;
(B) the sale, lease, or other disposition is approved by the local governing body after a public hearing held not less than ten days after publication of the notice.
(g) Sponsors under subsection (f) of this section shall be designated by following the procedure set forth in subsection (b) of this section, except that the public notice therein required need not be made 30 days before the execution of any contract to sell, lease, or otherwise transfer real property, as set forth in subsection (b) of this section.
(h) For the effectuation of any of the purposes of an urban renewal project and in accordance with the urban renewal plan, a municipality may grant, sell, convey, or lease, without public hearing or public letting and without following the requirements of subsection (b) of this section, to a public utility subject to the jurisdiction of the Department of Public Service, for such length of time as it may deem advisable, franchises, easements, or rights-of-way, in, over, below, along, or across any lands acquired by the municipality under this chapter, upon such terms and conditions, for such consideration, and subject to such restrictions as in the judgment of its local governing body seem proper if the local governing body first determines that the use and enjoyment for those purposes of those lands is not inconsistent with the purposes and provisions of the urban renewal plan.
(Amended 1966, No. 69 (Sp. Sess.),§§ 7, 8, eff. March 14, 1966.)
§ 3214 Issuance of bonds
(a) A municipality shall have power to issue bonds from time to time in its discretion to finance the undertaking of any urban renewal project under this chapter, including, without limiting the generality thereof, the payment of principal and interest upon any advances for surveys and plans, or preliminary loans and shall also have power to issue refunding bonds for the payment or retirement of such bonds previously issued by it. Such bonds shall be made payable, as to both principal and interest, solely from the income proceeds, revenues, and funds of the municipality derived from or held in connection with its undertaking and carrying out of urban renewal projects under this chapter; provided, however, that payment of such bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant, or contribution from the federal government or other source, in aid of any urban renewal projects of the municipality under this chapter, and by a mortgage of any such urban renewal projects, or any part thereof, title to which is in the municipality.
(b) Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance, or sale of bonds. Bonds issued under the provisions of this chapter are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, shall be exempted from all taxes.
(c) Bonds issued under this section shall be authorized by resolution or ordinance of the local governing body and may be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, 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, such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.
(d) Such bonds may be sold at not less than par at public sales held after notice published prior to such sale in a newspaper having a general circulation in the area of operation and in such other medium of publication as the municipality may determine or may be exchanged for other bonds on the basis of par; provided, that such bonds may be sold to the federal government at private sale at not less than par, and, in the event less than all of the authorized principal amount of such bonds is sold to the federal government, the balance may be sold at private sale at not less than par at an interest cost to the municipality of not to exceed the interest cost to the municipality of the portion of the bonds sold to the federal government.
(e) In case any of the public officials of the municipality whose signatures appear on any bonds or coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.
(f) In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security therefore, any such bond reciting in substance that it has been issued by the municipality in connection with an urban renewal project, as herein defined, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located, and carried out in accordance with the provisions of this chapter.
(Amended 1966, No. 69 (Sp. Sess.), § 9, eff. March 14, 1966; 1969, No. 285 (Adj. Sess.), § 10, eff. April 9, 1970.)
§ 3215 Bonds as legal investments
All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking or investment business; all insurance companies, insurance associations, and other persons carrying on an insurance business; and all executors, administrators, curators, 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 other obligations issued by a municipality pursuant to this chapter or by any urban renewal agency or housing authority vested with urban renewal project powers under section 3219 of this chapter; provided, that such bonds and other obligations shall be secured by an agreement between the issuer and the federal government in which the issuer agrees to borrow from the federal government and the federal government agrees to lend to the issuer, prior to the maturity of such bonds or other obligations, monies in an amount which, together with any other monies irrevocably committed to the payment of interest on such bonds or other obligations, will suffice to pay the principal of such bonds or other obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such bonds or other obligations at their maturity. Such bonds and other obligations shall be authorized security for all public deposits. It is the purpose of this section to authorize any persons, political subdivisions, and officers, public or private, to use any funds owned or controlled by them for the purchase of any such bonds or other obligations. Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities.
§ 3216 Property exempt from taxes and from levy and sale by virtue of an execution
(a) All property of a municipality, including funds, owned or held by it for the purposes of this chapter shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall judgment against a municipality be a charge or lien upon such property; provided, however, that the provisions of this section shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this act by a municipality on its rents, fees, grants, or revenues from urban renewal projects.
(b) The property of a municipality, acquired or held for the purposes of this chapter, is declared to be public property used for essential public and governmental purposes and such property shall be exempt from all taxes of the municipality, the county, the State, or any political subdivision thereof; provided, that such tax exemption shall terminate when the municipality sells, leases, or otherwise disposes of such property in an urban renewal area to a purchaser or lessee which is not a public body entitled to tax exemption with respect to such property.
§ 3217 Cooperation by public bodies
(a)(1) For the purpose of aiding in the planning, undertaking, or carrying out of an urban renewal project located within the area in which it is authorized to act, any public body may, upon such terms, with or without consideration, as it may determine:
(A) dedicate, sell, convey, or lease any of its interest in any property or grant easements, licenses, or other rights or privileges therein to a municipality;
(B) incur the entire expense of any public improvements made by such public body in exercising the powers granted in this section;
(C) do any and all things necessary to aid or cooperate in the planning or carrying out of an urban renewal plan;
(D) lend, grant, or contribute funds to a municipality;
(E) enter into agreements that may extend over any period, notwithstanding any provisions or rule of law to the contrary, with a municipality or other public body respecting action to be taken pursuant to any of the powers granted by this chapter, including the furnishing of funds or other assistance in connection with an urban renewal project; and
(F) cause public buildings and public facilities, including parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works that it is otherwise empowered to undertake to be furnished; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan or replan streets, roads, sidewalks, ways, or other places; plan, replan, zone, or rezone any part of the public body or make exceptions from building regulations; and cause administrative and other services to be furnished to the municipality.
(2) If at any time title to or possession of any urban renewal project is held by any public body or governmental agency, other than the municipality, that is authorized by law to engage in the undertaking, carrying out, or administration of urban renewal projects, including any agency or instrumentality of the United States of America, the provisions of the agreements referred to in this section shall inure to the benefit of and may be enforced by such public body or governmental agency.
(3) As used in this subsection, the term “municipality” shall also include an urban renewal agency or a housing authority vested with all of the urban renewal project powers pursuant to the provisions of section 3219 of this title.
(b) Any sale, conveyance, lease, or agreement provided for in this section may be made by a public body without appraisal, public notice, advertisement, or public bidding.
(c) For the purpose of aiding in the planning, undertaking, or carrying out of an urban renewal project of an urban renewal agency or a housing authority hereunder, a municipality may, in addition to its other powers and upon such terms, with or without consideration, as it may determine, do and perform any or all of the actions or things which, by the provisions of subsection (a) of this section, a public body is authorized to do or perform, including the furnishing of financial and other assistance.
(d)(1) For the purposes of this section, or for the purpose of aiding in the planning, undertaking, or carrying out of an urban renewal project of a municipality, that municipality may, in addition to any authority to issue bonds pursuant to section 3214 of this title, issue and sell its general obligation bonds.
(2) Any bonds issued by a municipality pursuant to this section shall be issued in the manner and within the limitations prescribed by the laws of this state for the issuance and authorization of bonds by that municipality for public purposes generally. However, bonds so issued:
(A) shall not be considered as indebtedness of the municipality limited by the provisions of section 1762 of this title or any other general or special law; and
(B) may be authorized by a majority of all the voters present and voting on the question at a meeting of such municipality held for the purpose pursuant to subchapter 1 of chapter 53 of this title or pursuant to the provisions of any special law that governs the authorization of indebtedness by the municipality.
(3)(A) So long as any such bonds of the municipality are outstanding the local governing body may deduct, in any one or more years from any net increase in the aggregate taxable valuation of land and improvements in all areas covered by urban renewal plans the amount necessary to produce tax revenues equal to the current debt service on such bonds, assuming the previous year’s total tax rate and full collection.
(B) Only the balance, if any, of such net increase shall be taken into account in computing the sums that may be appropriated for other purposes under applicable tax rate limits.
(C) All the taxable property in all areas covered by urban renewal plans, including the whole of such net increase, shall be subject to the same total tax rate as other taxable property, except as may be otherwise provided by law.
(D) The net increase shall be computed each year by subtracting, from the current aggregate valuation of the land and improvements in all the areas covered by urban renewal plans, the sum of the aggregate valuations of land and improvements in each such area on the date the urban plan for such area was approved under subsection 3207(f) of this title. An area shall be deemed to be covered by an urban renewal plan until the date shown in the plan as its expiration date or until the date all the indebtedness incurred by the municipality to finance the applicable project has been paid, whichever date is later.
(4) All the provisions of this subsection shall apply to all municipalities, notwithstanding any provision of general or special law to the contrary that specifies a different debt limit, that requires a greater vote to authorize bonds, that prescribes a different computation of appropriations under tax rate limits, or that is otherwise inconsistent with this subsection.
(Amended 1963, No. 2, § 1, eff. Feb. 14, 1963; 2017, No. 74, § 108.)
§ 3218 Title of purchaser
Any instrument executed by a municipality and purporting to convey any right, title, or interest in any property under this chapter shall be conclusively presumed to have been executed in compliance with the provisions of this chapter insofar as title or other interest of any bona fide purchasers, lessees, or transferees of such property is concerned.
§ 3219 Exercise of powers in carrying out urban renewal project
(a) A municipality may itself exercise its urban renewal project powers, as herein defined, or may, if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency created by section 3220 of this title or by the housing authority, if one exists or is subsequently established in the community. In the event the local governing body makes such determination, the urban renewal agency or the housing authority, as the case may be, shall be vested with all of the urban renewal project powers in the same manner as though all such powers were conferred on such agency or authority instead of the municipality. If the local governing body does not elect to make such determination, the municipality in its discretion may exercise its urban renewal project powers through a board or commissioner or through such officers of the municipality as the local governing body may by resolution determine.
(b) As used in this section, the term “urban renewal project powers” shall include the rights, powers, functions, and duties of a municipality under this chapter, except the following: the power to determine an area to be a slum or blighted area or combination thereof and to designate such area as appropriate for an urban renewal project and to hold any public hearing required with respect thereto; the power to approve urban renewal plans and modifications thereof; the power to approve general neighborhood renewal plans and community-wide plans or programs for urban renewal; the power to acquire, demolish, remove, or dispose of property as provided in subdivision 3209(4)(A); the power to establish as general plan for the locality as a whole; the power to formulate a workable program under section 3205 of this title; the power to make the determinations and findings provided for in sections 3204, 3206, and 3207(d) of this title; the power to issue general obligation bonds under subsection 3217(d); the power to assume the responsibility to bear loss as provided in subdivision 3209(4); and the power to appropriate funds, to levy taxes and assessments, and to exercise other powers provided for in subdivision 3209(9) of this title.
(Amended 1966, No. 69 (Sp. Sess.), § 10, eff. March 14, 1966.)
§ 3220 Urban renewal agency
(a) There is hereby created in each municipality a public body corporate and politic to be known as the “urban renewal agency” of the municipality; provided, that such agency shall not transact any business or exercise its powers hereunder until or unless the local governing body has made the finding prescribed in section 3206 of this title and has elected to have the urban renewal project powers exercised by an urban renewal agency as provided in section 3219 of this title.
(b) If the urban renewal agency is authorized to transact business and exercise powers hereunder, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the urban renewal agency which shall consist of five commissioners. The term of office of each such commissioner shall be one year.
(c)(1) A commissioner shall receive no compensation for his or her services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties. Each commissioner shall hold office until his or her successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the municipality and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner.
(2) The powers of an urban renewal agency shall be exercised by the commissioners thereof. A majority of the commissioners shall constitute a quorum for the purpose of conducting business and exercising the powers of the agency and for all other purposes. Action may be taken by the agency upon a vote of a majority of the commissioners present, unless in any case the bylaws shall require a larger number. Any persons may be appointed as commissioners if they reside within the area of operation of the agency, which shall be coterminous with the area of operation of the municipality, and are otherwise eligible for such appointments under this chapter.
(3) The mayor shall designate a chair and vice chair from among the commissioners. An agency may employ an executive director, technical experts, and such other agents and employees, permanent and temporary, as it may require, and determine their qualifications, duties, and compensation. For such legal service as it may require, an agency may employ or retain its own counsel and legal staff. An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March 31 of each year a report of its activities for the preceding calendar year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expense as of the end of such calendar year. At the time of filing the report, the agency shall publish in a newspaper of general circulation in the community a notice to the effect that such report has been filed with the municipality and that the report is available for inspection during business hours in the office of the clerk and in the office of the agency.
(d) For inefficiency or neglect of duty or misconduct in office, a commissioner may be removed only after a hearing and after he or she shall have been given a copy of the charges at least 10 days prior to such hearing and have had an opportunity to be heard in person or by counsel.
§ 3221 Interested public officials, commissioners, or employees
No public official or employee of a municipality, or board or commission thereof, and no commissioner or employee of a housing authority or urban renewal agency which has been vested by a municipality with urban renewal project powers under section 3219 of this title shall voluntarily acquire any personal interest, direct or indirect, in any urban renewal project, or in any property included or planned to be included in any urban renewal project of such municipality or in any contract or proposed contract in connection with such urban renewal project. Where such acquisition is not voluntary, the interest acquired shall be immediately disclosed in writing to the local governing body and such disclosure shall be entered upon the minutes of the governing body. If any such official, commissioner, or employee presently owns or controls, or owned or controlled within the preceding two years, any interest, direct or indirect, in any property which he or she knows is included or planned to be included in an urban renewal project, he or she shall immediately disclose this fact in writing to the local governing body, and such disclosure shall be entered upon the minutes of the governing body, and any such official, commissioner, or employee shall not participate in any action by the municipality, or board or commission thereof, housing authority, or urban renewal agency affecting such property. Any disclosure required to be made by this section to the local governing body shall concurrently be made to a housing authority or urban renewal agency which has been vested with urban renewal project powers by the municipality pursuant to the provisions of section 3219 of this title. No commissioner or other officer of any housing authority, urban renewal agency, board, or commission exercising powers pursuant to this chapter shall hold any other public office under the municipality other than his or her commissionership or office with respect to such housing authority, urban renewal agency, board, or commission. Any violation of the provisions of this section shall constitute misconduct in office.
Chapter 87 Special Assessments
Subchapter 1 General Provisions
§ 3251 Definitions
As used in this chapter:
(1) “Legislative body” means “legislative body” as defined in section 2001 of this title.
(2) “Property” means real estate.
(3) “Sewage system” means “sewage system” as defined in subdivision 3501(6) of this title.
(4) “Special assessment” means a tax assessed against one or more properties receiving the benefit of a particular public improvement, as distinguished from a tax on the entire grand list of a municipality.
(5) “Water system” means “water system” as defined in subdivision 3341(b)(2) of this title without reference to any determination by the water commission.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970.)
§ 3252 Purpose of assessments
Special assessments may be made for the purchase, construction, repair, reconstruction, or extension of a water system or sewage system, or any other public improvement that is of benefit to a limited area of a municipality to be served by the improvement, including those projects authorized under subchapter 2 of this chapter.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970; amended 2009, No. 45, § 15i, eff. May 27, 2009.)
§ 3253 Method of apportionment
A special assessment may be apportioned among the properties to be benefited thereby according to the listed value of such properties in the grand list, the frontage thereof, the added value accruing to each property by reason of the public improvement for which such assessment is made, or by any method other than the foregoing that results in a fair apportionment of the cost of the improvement in accordance with the benefits received.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970.)
§ 3254 Approval of voters
A special assessment under this chapter shall be levied only by vote of a majority of the qualified voters of the municipality voting at an annual or special meeting duly warned for that purpose. However, the question need not be submitted to the voters if all of the owners of record of property to be assessed, or of any interest therein, other than mortgagees or lien holders, consent in writing to the assessment. Either the vote or the consent shall include approval of the method of apportionment of the assessment.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970.)
§ 3255 Collection of assessments; liens
(a) Special assessments under this chapter shall constitute a lien on the property against which the assessment is made in the same manner and to the same extent as taxes assessed on the grand list of a municipality, and all procedures and remedies for the collection of taxes shall apply to special assessments.
(b) Notwithstanding subsection (a) of this section, a lien for an assessment under subchapter 2 of this chapter shall be subordinate to all liens on the property in existence at the time the lien for the assessment is filed on the land records, shall be subordinate to a first mortgage on the property recorded after such filing, and shall be superior to any other lien on the property recorded after such filing. In no way shall this subsection affect the status or priority of any municipal lien other than a lien for an assessment under subchapter 2 of this chapter.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970; amended 2011, No. 47, § 18a, eff. July 1, 2012.)
§ 3256 Construction with other laws
Nothing contained in this chapter shall prohibit the financing of any of the improvements referred to in this chapter by a tax on the grand list of a municipality, or by other means.
(Added 1969, No. 170 (Adj. Sess.), § 10, eff. March 2, 1970.)
Subchapter 2 Property-Assessed Clean Energy
§ 3261 Property-assessed clean energy districts; approval of voters
(a)(1) In this subchapter, “district” means a property-assessed clean energy district.
(2) The legislative body of a town, city, or incorporated village may submit to the voters of the municipality the question of whether to designate the municipality as a property-assessed clean energy district. In a district, only those property owners who have entered into written agreements with the municipality under section 3262 of this title would be subject to a special assessment, as set forth in section 3255 of this title.
(b) Upon a vote of approval by a majority of the qualified voters of the municipality voting at an annual or special meeting duly warned for that purpose, the municipality may incur indebtedness for or otherwise finance projects relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or to eligible projects relating to energy efficiency as defined by section 3267 of this title, undertaken by owners of dwellings, as defined in Section 103(v) of the federal Truth in Lending Act, within the boundaries of the town, city, or incorporated village.
(Added 2009, No. 45, § 15j, eff. May 27, 2009; amended 2011, No. 47, § 18c, eff. May 25, 2011.)
§ 3262 Written agreements; consent of property owners; energy savings analysis
(a) Upon an affirmative vote made pursuant to section 3261 of this title and the performance of an energy savings analysis pursuant to subsection (b) of this section, an owner of a dwelling, as defined in Section 103(v) of the federal Truth in Lending Act, within the boundaries of a district may enter into a written agreement with the municipality that shall constitute the owner’s consent to be subject to a special assessment, as set forth in section 3255 of this title. Entry into such an agreement may occur only after January 1, 2012. A participating municipality shall follow underwriting criteria established by the Department of Financial Regulation, and shall establish other qualifying criteria to provide an adequate level of assurance that property owners will have the ability to meet assessment payment obligations. A participating municipality shall refuse to enter into a written agreement with a property owner who fails to meet the underwriting or other qualifying criteria.
(b) Prior to entering into a written agreement, a property owner shall have an analysis performed to quantify the project costs and energy savings and estimated carbon impacts of the proposed energy improvements, including an annual cash-flow analysis. This analysis shall be conducted by the entities appointed as energy efficiency utilities under 30 V.S.A. § 209(d)(2), or conducted by another entity deemed qualified by the participating municipality. All analyses shall be reviewed and approved by the entities appointed as energy efficiency utilities.
(c) A written agreement shall provide that:
(1) The length of time allowed for the property owner to repay the assessment shall not exceed the life expectancy of the project. In instances where multiple projects have been installed, the length of time shall not exceed the average lifetime of all projects, weighted by cost. Lifetimes of projects shall be determined by the entities appointed as energy efficiency utilities under 30 V.S.A. § 209(d)(2) or another qualified technical entity designated by a participating municipality.
(2) Notwithstanding any other provision of law:
(A) At the time of a transfer of property ownership including foreclosure, the past due balances of any special assessment under this subchapter shall be due for payment, but future payments shall continue as a lien on the property.
(B) In the event of a foreclosure action, the past due balances described in subdivision (A) of this subdivision (2) shall include all payments on an assessment under this subchapter that are due and unpaid as of the date the action is filed, and all payments on the assessment that become due after that date and that accrue up to and including the date title to the property is transferred to the mortgage holder, the lien holder, or a third party in the foreclosure action. The person or entity acquiring title to the property in the foreclosure action shall be responsible for payments on the assessment that become due after the date of such acquisition.
(3) A participating municipality shall disclose to participating property owners each of the following:
(A) the risks associated with participating in the program, including risks related to the failure of participating property owners to make payments and the risk of foreclosure;
(B) the provisions of subsection (h) of this section that pertain to prepayment of the assessment.
(d) A written agreement or notice of such agreement and the analysis performed pursuant to subsection (b) of this section shall be filed with the clerk of the applicable municipality for recording in the land records of that municipality and shall be disclosed to potential buyers prior to transfer of property ownership. Personal financial information provided to a municipality by a participating property owner or potential participating property owner shall not be subject to disclosure as set forth in 1 V.S.A. § 317(c)(7). If a notice of agreement is filed instead of the full written agreement, the notice shall attach the analysis performed pursuant to subsection (b) of this section and shall include at least each of the following:
(1) the name of the property owner as grantor;
(2) the name of the municipality as grantee;
(3) the date of the agreement;
(4) a legal description of the real property against which the assessment is made pursuant to the agreement;
(5) the amount of the assessment and the period during which the assessment will be made on the property;
(6) a statement that the assessment will remain a lien on the property until paid in full or released; and
(7) the location at which the original or a true, legible copy of the agreement may be examined.
(e) At least 30 days prior to entering into a written agreement, the property owner shall provide to the holders of any existing mortgages on the property notice of his or her intent to enter into the written agreement.
(f) The total amount of assessments under this subchapter shall not exceed more than 15 percent of the assessed value of the property. The combined amount of the assessment plus any outstanding mortgage obligations for the property shall not exceed 90 percent of the assessed value of that property.
(g) With respect to an agreement under this section:
(1) the assessments to be repaid under the agreement, when calculated as if they were the repayment of a loan, shall not violate 9 V.S.A. §§ 41a, 43, 44, and 46-50;
(2) the maximum length of time for the owner to repay the assessment shall not exceed 20 years; and
(3) the maximum amount to be repaid for the project, including the participating property owner’s contribution to the reserve fund under subsection 3269(c) of this title, shall not exceed $30,000.00 or 15 percent of the assessed value of the property, whichever is less.
(h) There shall be no penalty or premium for prepayment of the outstanding balance of an assessment under this subchapter if the balance is prepaid in full.
(Added 2009, No. 45, § 15j, eff. May 27, 2009; amended 2011, No. 47, § 18d, eff. May 25, 2011 and Jan. 1, 2012; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
§ 3263 Costs of operation of district
The owners of real property who have entered into written agreements with the municipality under section 3262 of this title shall be obligated to cover the costs of operating the district. A municipality may use other available funds to operate the district.
(Added 2009, No. 45, § 15j, eff. May 27, 2009.)
§ 3264 Rights of property owners
A property owner who has entered into a written agreement with the municipality under section 3262 of this title may enter into a private agreement for the installation or construction of a project relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or relating to energy efficiency as defined in section 3267 of this title.
(Added 2009, No. 45, § 15j, eff. May 27, 2009.)
§ 3265 Liability of municipality
(a) A municipality that incurs indebtedness for or otherwise finances projects under this subchapter shall not be liable for the failure of performance of a project.
(b) A municipality that incurs indebtedness for bonding under this subchapter shall pledge the full faith and credit of the municipality.
(Added 2009, No. 45, § 15j, eff. May 27, 2009.)
§ 3266 Intermunicipal agreements
Two or more municipalities, by resolution of their respective legislative bodies or boards, may establish and enter into agreements for incurring indebtedness or otherwise financing projects under this subchapter.
(Added 2009, No. 45, § 15j, eff. May 27, 2009.)
§ 3267 Eligible energy efficiency projects; assistance to municipalities
Those entities appointed as energy efficiency utilities under 30 V.S.A. § 209(d):
(1) shall develop a list of eligible energy efficiency projects and shall make the list available to the public on or before July 1 of each year; and
(2) shall provide information concerning implementation of this subchapter to each municipality, within the area in which the entity delivers efficiency services, that requests such information, and shall contact each such municipality that votes to establish a district to offer this information.
(Added 2009, No. 45, § 15j, eff. May 27, 2009; amended 2011, No. 47, § 18e, eff. Jan. 1, 2012.)
§ 3268 Release of lien
(a) A municipality shall release a participating property owner of the lien on the property against which the assessment under this subchapter is made upon full payment of the value of the assessment.
(b) Notice of a release of a lien for an assessment under this subchapter shall be filed with the clerk of the applicable municipality for recording in the land records of that municipality.
(Added 2009, No. 45, § 15j, eff. May 27, 2009; amended 2011, No. 47, § 18f, eff. Jan. 1, 2012.)
§ 3269 Reserve fund
(a) A reserve fund is created for use in paying the past due balances of an assessment under this subchapter in the event that there is a foreclosure upon the property subject to the assessment and the proceeds resulting from the foreclosure are, after all superior liens have been satisfied, insufficient to pay those past due balances. The reserve fund shall comply with the provisions of subsections (b) through (e) of this section and shall be administered by and in the custody of the entity described in subsection (f) of this section. Each municipality that establishes a district under this subchapter shall participate in the reserve fund created by this subsection.
(b) The reserve fund shall be funded by participating property owners at a level sufficient to provide for the payment of past due balances described in subdivision 3262(c)(2) of this title in the event of a foreclosure upon a participating property and the costs of administering the reserve fund and shall only be used to provide for such payment and administration.
(c) The contribution of each participating property owner to the reserve fund shall be included in the special assessment applicable to the property and shall be subject to section 3255 of this title. From time to time, the Commissioner of Financial Regulation shall determine the appropriate contribution to the fund in accordance with subsection (d) of this section. A determination by the Commissioner under this subsection shall apply to the reserve fund contribution for an assessment concerning which a written agreement under section 3262 is signed after the date of the Commissioner’s determination and shall not affect the reserve fund contribution for an assessment concerning which such an agreement was signed on or before the date of the Commissioner’s determination.
(d) The reserve fund shall be capitalized in accordance with standards and procedures approved by the Commissioner of Financial Regulation to cover expected foreclosures and fund administration costs based on good lending practice experience. Interest earned shall remain in the fund. The administrator of the reserve fund shall invest and reinvest the monies in the fund and hold, purchase, sell, assign, transfer, and dispose of the investments in accordance with the standard of care established by the Prudent Investor Rule under 9 V.S.A. chapter 147. The administrator shall apply the same investment objectives and policies adopted by the Vermont State Employees’ Retirement System, where appropriate, to the investment of monies in the fund.
(e) The municipality shall disclose in advance to each interested property owner the amount of that property owner’s required payment into the reserve fund. Once disclosed, the amount of the reserve fund payment shall not change over the life of the assessment.
(f) An entity appointed under 30 V.S.A. § 209(d)(2) to deliver energy efficiency programs to multiple service territories shall administer the reserve fund created under subdivision (a)(1) of this section.
(1) The entity’s costs of administering the reserve fund shall be considered costs of operating the districts under section 3263 of this title.
(2) In the event of foreclosure on a property that is subject to a special assessment and is in a district that participates in the reserve fund administered by the entity, the entity’s obligation shall be to disburse, at the direction of the municipality, monies from the reserve fund to apply to the past due balances of the assessment. In no event shall other monies received or held by the entity be available to meet this obligation or the payment of balances on an assessment.
(3) The entity shall keep an accurate account of all activities and receipts and expenditures under this subsection. An independent audit of the reserve fund shall be conducted annually. The cost of such an audit shall be considered a cost of administering the reserve fund. Where feasible, the entity shall cause this audit to be conducted in conjunction with other independent audits of its accounts, receipts, and expenditures. An audit conducted under this subdivision shall be available, on request, to the Auditor of Accounts and the Commissioners of Financial Regulation and of Public Service.
(Added 2009, No. 45, § 15j, eff. May 27, 2009; amended 2011, No. 47, § 18g, eff. Jan. 1, 2012; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
§ 3270 State PACE Reserve Fund
(a) The State PACE Reserve Fund is established to be held in the custody of and administered by the State Treasurer. The purpose of the State PACE Reserve Fund shall be to reduce, for those districts for which the entity described in subsection 3269(f) of this title administers the loss reserve fund, the risk faced by an investor making an agreement with a municipality to finance such a district.
(b) The Treasurer may invest monies in the Fund in accordance with 32 V.S.A. § 434. All balances in the Fund at the end of the fiscal year shall be carried forward and shall not revert to the General Fund. Interest earned shall remain in the Fund. The Treasurer’s annual financial report to the General Assembly under 32 V.S.A. § 434 shall contain an accounting of receipts, disbursements, and earnings of the Fund.
(c) At the direction of the Treasurer, a sum shall be transferred to the Fund from monies deposited into the Energy Efficiency Fund pursuant to 30 V.S.A. § 209(e)(1)(A) (net capacity savings payments) and 209(e)(1)(B) (net revenues from the sale of carbon credits).
(1)(A) For a given year, the sum transferred under this subsection shall be:
(i) five percent of the total amount of those assessments concerning which owners of real property, in the districts described in subsection (a) of this section, are expected to enter into written agreements pursuant to section 3262 of this title during the year; and
(ii) such additional amount, if any, that is necessary to meet the full amount of payments reasonably expected to be made from the State PACE Reserve Fund during that year.
(B) In no event shall the sum transferred under this subsection exceed the limits on the total amount of funding from the State PACE Reserve Fund set forth under subsection (f) of this section.
(2) When directing a transfer under this subsection, the Treasurer shall notify the Commissioners of Finance and Management and of Public Service, the Chair of the Public Utility Commission, and the entity described in subsection 3269(f) of this title. Monies shall not be disbursed from the State PACE Reserve Fund until necessary resources are transferred to the Fund.
(d) Monies deposited to the State PACE Reserve Fund and any interest on monies in that Fund shall be used for the sole purpose of paying claims as described in subsections (e) and (f) of this section. In no event shall any monies received or held by the State of Vermont, other than monies deposited into the State PACE Reserve Fund or interest on monies in that Fund, be available to meet this obligation or the payment of a remaining past due balance or any other obligation under this subchapter.
(e) In this section, “remaining past due balance” means that amount, if any, of a past due balance on an assessment under this subchapter that exists:
(1) immediately following foreclosure on a property in a district that participates in the loss reserve fund administered by the entity described in subsection 3269(f) of this title; and
(2) after the application, to the past due balances of the assessment on that property, of the proceeds available from the foreclosure, net of superior liens, and of the assets of that loss reserve fund.
(f) The obligation of the State PACE Reserve Fund shall be to fund 90 percent of a remaining past due balance, upon presentation of a claim and application acceptable to the Treasurer and the entity described in subsection 3269(f) of this title, provided that the total amount of all such funding from the State PACE Reserve Fund shall not exceed the smallest of the following:
(1) $1,000,000.00.
(2) The funds available pursuant to subsection (d) of this section.
(3) Five percent of the total of all assessments under this subchapter in the districts that participate in the loss reserve fund administered by the entity described in subsection 3269(f) of this title.
(Added 2011, No. 47, § 18h, eff. Jan. 1, 2012.)
§ 3271 Monitoring; compliance; underwriting criteria
The Department of Public Service created under 30 V.S.A. § 1 shall monitor and evaluate, for compliance with the underwriting criteria, standards, and procedures established under subsections 3262(a) (underwriting criteria for assessments) and 3269(c) and (d) (underwriting standards and procedures; loss reserve fund) of this title, all activities to which those criteria, standards, and procedures apply that are undertaken by an entity appointed under 30 V.S.A. § 209(d)(2) to deliver energy efficiency programs. The Department shall consult with the Department of Financial Regulation in performing these tasks. The Department of Public Service may combine its tasks under this section with monitoring and evaluation of an energy efficiency entity conducted pursuant to 30 V.S.A. § 209(d) or (e).
(Added 2011, No. 47, § 18i, eff. Jan. 1, 2012; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
Chapter 89 Waterworks
§ 3301 Water supply; construction; condemnation; exceptions
A municipal corporation is hereby authorized and empowered to construct, maintain, and repair an artesian well, reservoir or reservoirs, pumps, engines, and apparatus; take, purchase, and acquire any artesian wells, ponds, springs, streams, water courses, real estate, water rights, flowage rights, and easements necessary for its purposes within the limits provided by this section, together with such land surrounding and adjacent to the same as may be reasonably necessary for protecting and preserving the purity of the water in such artesian wells, ponds, springs, and streams; and may enclose such artesian wells, ponds, springs, and streams by suitable fences for the purpose of such protection; and such corporation, within the limits set forth in this section, and subject to the provisions of 30 V.S.A. § 108, may take, acquire, or purchase any or all of the rights or properties owned or operated by any person or corporation engaged in the business of a water company, as defined by 30 V.S.A. § 203, within the limits of such municipal corporation. Such corporation may enter in and upon any land or water for the purpose of making surveys, may take and construct dams and reservoirs, lay pipes and aqueducts, may connect the same with the main aqueduct as may be necessary to convey the water taken to the reservoirs of such municipal corporation and distribute the same through such municipal corporation for the purpose of supplying the inhabitants thereof with water for fire, domestic, and other purposes. However, such municipal corporation shall not take otherwise than by purchase water or a spring of water that the owner or lessee or other person having a vested right or interest in such water or the use thereof may reasonably require for domestic use or the watering of animals on the premises where such water may be in use.
(Amended 2019, No. 131 (Adj. Sess.), § 256.)
§ 3302 Entry on lands
For the purposes enumerated in section 3301 of this title, such municipal corporation may enter upon and use any land and enclosures over or through which it may be necessary for an aqueduct or pipes to pass, and may thereon dig, place, lay, and construct such pipes, aqueducts, reservoirs, appurtenances, and connections as may be necessary for the complete construction and repairing of the same. From time to time, such corporation may open the ground in any streets, lanes, avenues, highways, and public grounds for the purpose of laying down and repairing such pipes, aqueducts, reservoirs, and appurtenances, as may be necessary for conducting the water and the purposes aforesaid. However, such streets, lanes, avenues, highways, and public grounds shall not be injured, but shall be left in as good condition as before the laying of such pipes, aqueducts, reservoirs, and appurtenances.
§ 3303 Compensation; condemnation
The municipal corporation may agree with the owner or owners of any property, franchise, easement, or right that may be required by the municipal corporation for the purposes of this chapter, as to the compensation to be paid. In case of failure to agree as to the compensation, or in case the owner is an infant, a person who lacks capacity to protect his or her interests due to a mental condition or psychiatric disability, absent from the State, unknown, or the owner of a contingent interest, the Superior Court within and for the county where the subject property is situated on the petition of either party, may cause the notice to be given of the petition as the presiding judge of the court may prescribe. After proof thereof, the presiding judge may appoint three disinterested persons as commissioners to examine the property to be taken or damaged by the municipal corporation. The commissioners after being duly sworn, upon due notice to all parties in interest, shall view the premises, hear the parties in respect to the property, and shall assess and award to the owners and persons so interested just damages for any injury sustained and make report in writing to the presiding judge. The presiding judge may accept the report, unless just cause is shown to the contrary. The presiding judge may order the municipal corporation to pay the same in the time and manner as he or she may prescribe, in full compensation for the property taken, or the injury done by the municipal corporation, or the presiding judge may reject or recommit the report if the ends of justice so require. On compliance with the order, the municipal corporation may proceed with the construction of its work without liability for further claim for damages. The presiding judge may award costs in the proceeding in his or her discretion. The cause may be transferred to the Supreme Court as provided in 12 V.S.A. § 4601.
(Amended 2013, No. 96 (Adj. Sess.), § 154; 2019, No. 131 (Adj. Sess.), § 257.)
§ 3304 Record
Such municipal corporation, within 60 days after the taking of any property, franchise, easement, or right under the provisions of this chapter, shall file in the office of the clerk of the municipal corporation where the same is situated, a description thereof.
§ 3305 Contract for water
(a) Such municipal corporation may contract with any town, city, or village, or any corporation and individuals to supply water to such municipal corporation for the protection of property and for domestic and other purposes.
(b) A municipal corporation is authorized to enter into, with any contracting party or parties, contracts, leases, or lease-purchase agreements with respect to the construction, operation, and maintenance of water systems. These contracts may be entered into for terms not to exceed 40 years or the useful life of the system, whichever is less.
(Amended 1983, No. 191 (Adj. Sess.), § 2.)
§ 3306 Charges; lien
The owner or occupant of any tenement, house, or building who takes the water of a municipal corporation shall be liable for the rent or price of the same, and the officers and agents of the municipal corporation entrusted with the care and superintendence of the water may at all reasonable times enter all premises so supplied to examine the pipes and fixtures and prevent any unnecessary waste. If any person, without the consent of the municipal corporation, shall use any water, a civil action on this statute may be maintained against the person by the municipal corporation for the recovery of damages. The charges, rates, or rents for water shall be a lien upon the real estate furnished with the municipal corporation water in the same manner and to the same effect as taxes are a lien on real estate under 32 V.S.A. § 5061.
(Amended 2019, No. 131 (Adj. Sess.), § 258.)
§ 3307 Interference with supply
If any person diverts the water or part of any of the artesian wells, ponds, springs, streams, aqueducts, water courses, or reservoirs, that shall be taken, used, or constructed by such municipal corporation, or shall corrupt the same, or make it impure, or commit any nuisance therein, or shall bathe therein, or within the limits, that may be taken or prescribed by such municipal corporation pursuant to the provisions of this chapter, or injure or destroy any artesian well, dam, embankment, aqueduct, pipe, reservoir, conduit, hydrant, structure, pump, machinery, or other property held, owned, or used by such municipal corporation under the provisions of this chapter, such person shall be liable to such municipal corporation in treble damages, to be recovered in a civil action on this statute, and any such person on conviction of a violation under this section shall be fined not exceeding $100.00 or committed to the Commissioner of Corrections not more than six months, or both.
(Amended 1971, No. 199 (Adj. Sess.), § 17; 1981, No. 223 (Adj. Sess.), § 23; 2019, No. 131 (Adj. Sess.), § 259.)
§ 3308 Taxes; bonds
For the purpose of successfully organizing, establishing, and operating its waterworks, and making such improvements as may be necessary, such municipal corporation is authorized and empowered to purchase, take, and hold real and personal estate; levy and collect such taxes upon the ratable estate of the municipal corporation as is necessary for the payment of municipal corporation water department expenses and indebtedness; issue its negotiable bonds in such sums and payable at such times and places as may be deemed advisable, for the purpose aforesaid only; and borrow such money from time to time as may be necessary to enable the water department to carry on the work of adequately supplying the municipal corporation with water.
§ 3309 Bond issue
Any municipal corporation that is authorized by any general or special law to acquire and maintain a water system may issue its bonds for water purposes pursuant to such law, without regard to any restrictions thereon prescribed by this chapter.
§ 3310 Limitations
Bonds issued under the authority of this chapter shall be authorized and issued in accordance with and subject to the limitations and provisions of chapter 53, subchapter 1 of this title. They shall not be considered as indebtedness of the municipal corporation limited by section 1762 of this title, may be paid in not more than 40 years from the date of issue notwithstanding the limitation of section 1759 of this title, may be authorized by a majority of those voting by ballot on the question at a meeting of the municipal corporation held for the purpose under chapter 53, subchapter 1 of this title notwithstanding any provisions of general or special law that may require a greater vote, and may be so arranged that beginning with the first year in which principal is payable, the amount of principal and interest in any year shall be as nearly equal as is practicable according to the denomination in which such bonds or other evidences of indebtedness are issued notwithstanding other permissible payment schedules authorized by section 1759 of this title.
(Amended 1965, No. 63, eff. May 19, 1965; 1971, No. 166 (Adj. Sess.), § 1, eff. March 22, 1972.)
§ 3311 Rates
Such municipal corporation may establish rates by meter service or annual rents to be charged and paid at such times, and in such manner as such municipal corporation shall determine for the supply of water to the inhabitants of such municipal corporation and others. From time to time, it may alter, modify, increase, or diminish such rates and extend them to any description of property or use as such municipal corporation may deem proper. Such rates or rents may be ordered to be paid in advance, and all necessary orders and provision may be made and enforced by such municipal corporation, relating to the supply or stoppage of water, as it may deem necessary to insure such advance payments.
§ 3312 Repealed
[Repealed]
1977, No. 50, § 5.
§ 3313 Duties of water commissioners, use of proceeds
(a) Water commissioners shall have the supervision of such municipal water department and shall make and establish all needful water rates, charges, rules, and regulations for its control and operation. Such commissioners may appoint or remove a superintendent at their pleasure. The receipts derived by the municipal corporation from its waterworks shall only be used and applied to pay the principal and interest upon the water bonds of such municipal corporation, the expense of repairs and management of the water department, and payment into the dedicated fund created under subsection (b) of this section.
(b) Receipts derived by a municipality from its waterworks may be deposited in a dedicated fund created by the water commissioners under section 2804 of this title, to finance major rehabilitation, major maintenance and costs of upgrading the water supply system, and for the accumulation of funds to be used to match federal funds pursuant to 10 V.S.A. § 1624(d). Such revenues may include a surcharge established by the water commissioners of up to 15 percent on the costs of normal operations, maintenance, and debt service. The fund balance shall not exceed the estimated costs of the purposes for which the fund is established, and shall be maintained in deposits insured by the United States of America or an agency of the United States. Withdrawals shall be made only for purposes for which the fund was established. Such a fund shall meet the requirements of subdivision 4756(a)(4) of this title.
(Amended 1997, No. 62, § 62, eff. June 26, 1997.)
§ 3314 Records
Every bond issued by such municipal corporation for water purposes, under the provisions of sections 3309 and 3310 of this title, shall be signed by the clerk and treasurer of such municipal corporation and shall have the certificate of such clerk that such bond is one of a series authorized by such municipal corporation. Its records shall be so kept as to show the issue of the bonds, the amounts and dates of the same, when due, and the time of their payment.
§ 3315 Ordinances
Such municipal corporation shall have the power to make, establish, alter, amend, or repeal ordinances, regulations, and bylaws relating to the matters contained in this chapter and not inconsistent with law, including the authority to require existing customers to remain connected to such municipal system, and to impose penalties for the breach thereof, and enforce the same.
(Amended 1997, No. 134 (Adj. Sess.), § 13.)
§ 3316 Meetings; vote
Any action taken by a municipal corporation under the provisions of this chapter or relating to the matters set forth in this chapter shall be by vote of the majority of the legal voters of the municipal corporation at a meeting duly warned and held, unless otherwise provided.
(Amended 2019, No. 131 (Adj. Sess.), § 260.)
Chapter 91 Consolidated Water Districts
§ 3341 General provisions—Policy and definitions
(a) It is hereby declared to be the policy of the State to authorize two or more towns or other municipal corporations to join together to establish a consolidated water district for the purpose of developing or acquiring a supply of water and a water distribution system for the purpose of supplying the inhabitants of the district or the member systems within the district with pure water for domestic, sanitary, agricultural, commercial, and industrial purposes, and for supplying the member towns with water for all lawful municipal purposes, including development, construction, and operation of water sources to supply existing municipal water systems.
(b) As used in this chapter, the following words and terms shall have the following meanings, unless the context shall indicate another or different meaning or intent:
(1) “Town” means any municipality within the meaning of 1 V.S.A. § 126.
(2) “Water system” means and includes all plants, systems, facilities or properties used or useful or having the present capacity for future use in connection with the supply or distribution of water, and any integral part thereof, including water supply systems, water distribution systems, reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, filtration plants, purification plants, hydrants, meters, valves, and all necessary appurtenances and equipment and all properties, rights, easements, and franchises relating thereto and deemed necessary or convenient by the water commission for the operation thereof.
(3) “Improvements” means such repairs, replacements, additions, extensions, and betterments of and to a water system as are deemed necessary by the water commissioners to place or to maintain such system in proper condition for its safe, efficient, and economic operation or to meet requirements for service in areas that may be served by the district and for which no existing service is being rendered.
(4) “Cost” as applied to a water system shall include the purchase price of any such system, the cost of construction, the cost of all labor, materials, machinery, and equipment, the cost of improvements, the cost of all lands, property, rights, easements, and franchises acquired, financing charges, interest prior to and during construction and, if deemed advisable by the water commissioners for one year after completion of construction, cost of plans and specifications, surveys, and estimates of cost and of revenues, cost of engineering and legal services, and all other expenses necessary or incident to determining the feasibility or practicability of such construction.
(5) “Wholesale consolidated water district” means a water district established for the purpose of developing sources of water, together with a system of delivering or treating it, or both, to existing municipal or private water companies.
(1964, No. 20 (Sp. Sess.), § 1, eff. March 10, 1964; amended 1966, No. 10 (Sp. Sess.), eff. Feb. 22, 1966; 1967, No. 209, § 1, eff. April 17, 1967.)
§ 3342 Organization and operation—Establishment of consolidated water district
(a) When a majority of the voters of each town of a proposed consolidated water district present and voting in each case by Australian ballot at a town meeting duly warned for that purpose for the same day and during the same hours that shall be at least eight consecutive hours shall vote to join with one or more neighboring towns as specified in the warning for the purpose of forming a consolidated water district, such vote shall be certified by the clerk of each town to the Secretary of State; and when all towns proposed as members of the consolidated water district as specified in such vote have so affirmatively voted and the results have been certified to the Secretary of State, the Secretary of State shall file the same in his or her office and shall send a written notice to the clerk of each town to be included in the consolidated water district that the requirements of this section have been met by each town in the district. Upon the filing of such records in the Office of the Secretary of State, the consolidated water district shall become a body politic and corporate with the powers incident to a public corporation and such records shall be notice to all parties of the establishment of the consolidated water district with all the powers incident to such a district as provided under this section; and the filing shall be prima facie evidence that the requirements for the creation of a consolidated water district as set forth in this section have been fully complied with. A consolidated water district may sue and be sued and may hold and convey real estate and personal estate for the use of the district and shall have and may exercise the powers and be subject to the duties and obligations of a municipal corporation provided for in chapter 89 of this title so far as the same may be applicable and except as otherwise provided in this chapter.
(b) A consolidated water district may enter into agreements with the State or federal governments or any agency of either or any corporation, commission, or board authorized by the State or federal government to grant or loan money to or otherwise assist in the financing of projects such as a consolidated water district is authorized to carry out, and to accept grants and borrow money from any such agency, corporation, commission, or board, as may be necessary or desirable to carry out the purposes of this chapter.
(c) The district shall have the right of eminent domain as set forth in sections 3301, 3302, 3303, and 3304 of this title within the district.
(d) If a town in its entirety votes to enter a consolidated water district and is accepted by the district, no village or municipal subdivision thereof may be a member concurrently. If a town either takes no vote, is not accepted, or declines to be a member of the district, any municipal subdivision thereof, including a village or fire district, may be considered under the language of this statute as a “town” and may become a member. If a subdivision is a member of a consolidated water district and the entire town later votes to join the district, the town shall replace its municipal subdivisions in the district.
(Added 1964, No. 20 (Sp. Sess.), § 2, eff. March 10, 1964; amended 1967, No. 209, § 2, eff. April 17, 1967; 2019, No. 131 (Adj. Sess.), § 261.)
§ 3343 Organizational meeting
(a) Within 60 days after the Secretary of State notifies the clerks of the member towns that the requirements of section 3342 of this title have been met, the voters in the consolidated water district shall meet and organize the district. The meeting shall be warned by the chair of the legislative body of each town of the district or by a member designated by his or her respective board to act in the chair’s stead. The warning shall state the day, hour, and place within the district where the meeting will be held and shall be posted in not less than six public places in the district, including at least two public places within each member town, and shall be published three times in a newspaper circulating in the district, the last publication to be at least six days previous to the day of the meeting. The meeting shall be called to order by the clerk of the town in which the meeting is held, at which time a temporary presiding officer and clerk shall be elected from among the qualified voters. At such organizational meeting or an adjournment of the meeting, the district shall elect a moderator and a permanent clerk; shall determine the number of water commissioners constituting the board of water commissioners; and shall elect a board of water commissioners, who shall be the legislative branch, a treasurer, and three auditors. All officers elected at the organizational meeting shall hold office until others are elected and qualified following the first annual meeting. The selectboard of each town may appoint an alternative water commissioner for each commissioner elected from that town, whose duty shall be to serve in place of the elected commissioner if the latter is unable to serve, resigns, or is unable to proceed in office. The total number of water commissioners and the member from each member town may be agreed upon by the several member towns in advance of the organizational meeting. In the absence of such agreement, the number shall be set by the organizational meeting at not less than three nor more than 11 commissioners, including at least one from each member town. Changes in the total number of commissioners may be made at any annual meeting of the district duly warned for that purpose by vote of two-thirds of those present and voting; except that it shall always include at least one from each member town. Water commissioners elected at the organizational meeting shall be elected from nominations made by the several towns at their most recent annual or special meeting, if such nominations have been made. Water commissioners to serve on the board of water commissioners of the consolidated district following the first annual meeting shall be elected by the member towns at their own annual or special meetings. Such elections shall be by Australian ballot in those member towns that elect their respective legislative branches by Australian ballot. All other consolidated water district officers shall be elected by the consolidated district. When there is only one nominee for any of the offices, the voters may, by acclamation, instruct an officer to elect that nominee by casting one ballot, and upon the ballot being cast the nominee shall be declared to be legally elected.
(b) At such organizational meeting or at an adjournment of the meeting, the district may further authorize its board of water commissioners to pay any expense incurred by or on behalf of the district in the period between the date on which the member towns voted to join the district and the first annual meeting of the district. The word “expense” as used in this chapter shall include the cost of architects, surveyors, engineers, contractors, lawyers, or other consultants or experts as well as current operating expenses to be incurred by the district from its organizational meeting until its first annual meeting. The district may authorize its board of water commissioners to borrow money pending receipt of payments from the member towns as provided in this chapter by the issuance of its notes or orders payable not later than one year from the date. At the organizational meeting, the district shall further select a name for the district, determine compensation, if any, to be paid to its officers, determine the date on which its annual meeting shall be held, (which shall not be earlier than October 1 or later than December 31), and adopt a seal. A certified copy of the vote designating the name of the consolidated water district shall be forthwith filed by the clerk of the district with the Secretary of State.
(c) All district officers elected at an annual meeting and water commissioners elected by their constituent towns shall enter upon their duties on April 1 following their election, unless a different date is set at an annual meeting. A vacancy occurring in any district office other than commissioner caused by death, resignation, removal from the district, or incapacity of an officer to carry his or her duties, shall be temporarily filled by the board of water commissioners with a person from the municipality from which the vacancy occurs within 10 days after the vacancy occurs and until the date when the newly elected officers take office. The vacancy shall be filled at the next annual meeting of the district. The term of office of the water commissioners and the auditors shall be three years and all other officers one year. At the first annual meeting, the terms of office of the commissioners shall be divided by agreement. If possible by lot, if not, with one-third expiring after one year, and one-third expiring after two years, or as nearly as may be. At said first annual meeting, one auditor shall be elected for one year, and one auditor for two years, and thereafter for three years or until their successors are chosen and qualified.
(d) The fiscal year of a consolidated water district shall be the calendar year. If the change in the date of an annual meeting is to be made, a notice of the proposed change shall be inserted in the warning of the annual meeting.
(Added 1964, No. 20 (Sp. Sess.), § 3, eff. March 10, 1964; amended 1967, No. 209, § 3, eff. April 17, 1967; 2019, No. 131 (Adj. Sess.), § 262.)
§ 3344 Warnings of meetings
(a) Meetings shall be warned by the clerk, or in case of his or her inability to act, by a majority of the water commissioners, by posting a notice thereof, specifying the time, place, and business of the meeting, in not less than five public places in the district, including at least one public place in each member town, at least 10 days before the time therein specified and causing the same to be published in a paper circulating in the district, such publication to be not less than 10 days before the date of the meeting, and the warning shall be recorded in the office of the clerk before being posted.
(b) Any meeting called for the purpose of considering a bond issue shall be warned as is provided for in chapter 53, subchapter 1 of this title.
(c) The water commissioners shall have the same authority and obligation to warn or call meetings of the district as selectmen have to warn or call town meetings.
(Added 1964, No. 20 (Sp. Sess.), § 4, eff. March 10, 1964.)
§ 3345 Eligibility of voters
Persons residing within the limits of the district, who are qualified voters in their town meetings, shall be voters in the district meeting. The moderator, clerk, and members of the board of water commissioners shall decide all questions as to the eligibility of a person to vote at a district meeting.
(1964, No. 20 (Sp. Sess.), § 5, eff. March 10, 1964.)
§ 3346 Check list
The clerk of each town within a consolidated water district shall furnish to the clerk of the district, at the expense of the district, authenticated copies of the check lists of legal voters within said town as the same appears after revision of such check list before the last town meeting, annual or special, preceding the date of the district meeting, which check list shall control for the purposes of determining the voters eligible to vote at the district meeting. Whenever a matter, including bond issues under chapter 53, subchapter 1 of this title, is to be determined by ballot or voting machine, the board of water commissioners may designate polling places not to exceed one in each member town.
(1964, No. 20 (Sp. Sess.), § 6, eff. March 10, 1964.)
§ 3347 Record of proceedings
The clerk shall keep a record of the votes and the proceedings of the 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 a civil action on this statute.
(1964, No. 20 (Sp. Sess.), § 7, eff. March 10, 1964.)
§ 3348 Finances; water rates; application of revenue
(a)(1) Notwithstanding the provisions of section 3311 of this title, the board of water commissioners of a consolidated water district shall establish rates for the water and services by meter service and all individuals, firms, and corporations, whether private, public, or municipal, shall pay to the treasurer of that district the rates and stand-by charges established by the board of water commissioners.
(2) In those districts in which water is supplied by the consolidated water district to the consumer, rates shall be uniform within the district. A wholesale consolidated water district shall set a rate that is uniform to all member towns, and it may further establish a separate schedule for nonmember users. The board of water commissioners may also enter into a contract with member and nonmember municipalities for the supply of water over a period of years.
(3) All rates shall be established so as to provide revenue for the following purposes:
(A) to pay current expenses for operating and maintaining the water systems;
(B) to provide for the payment of interest on the indebtedness created by the district;
(C) to provide each year a sum equal to not less than two percent or more than five percent of the entire indebtedness created or assumed by the district to pay for the cost of the water system and improvements to the water system, which sum shall be used to pay indebtedness maturing in that year or turned into a sinking fund and there kept to provide for the extinguishment of indebtedness of the district;
(D) to capitalize a sinking fund, the proceeds of which shall be used to match federal funds.
(4) If any surplus remains at the end of the year, it may be turned into the sinking fund or used to pay the cost of improvements to the water system.
(b) The money set aside for the sinking fund and any increment thereon shall be devoted to the retirement of obligations of the district or for the purpose of matching federal funds, or invested in such securities as savings banks or fiduciaries or trustees are now or hereafter allowed to hold. The balance of the revenue, if any, required to meet said expenses shall be apportioned among and collected from member towns as provided under this chapter.
(c) In the event that a member town in the district elects to establish a system by vote at an annual or special town meeting for fire protection, a consolidated water district may, at the expense of that town, purchase and install hydrants in the town and shall establish an annual fire protection stand-by charge for each hydrant, which charge shall be uniform throughout the district, and which shall be paid to the treasurer of the district by the member town in which the system is located. Any municipality purchasing water from a consolidated water district may, in turn, sell the water to any adjoining municipality and may set a charge for the water that takes into account, in addition to the rate paid to the consolidated water district, a sum to cover the expense of transporting the water to the purchasing municipality.
(Added 1964, No. 20 (Sp. Sess.), § 8, eff. March 10, 1964; amended 1967, No. 209, § 4, eff. April 17, 1967; 1997, No. 62, § 63, eff. June 26, 1997; 2019, No. 131 (Adj. Sess.), § 263.)
§ 3349 Annual budget; apportionment; assessment; taxes
(a) The board of water commissioners of the district shall at each annual meeting present to the district its budget for the ensuing year, which shall include an estimate of the revenue from water rates and other sources, except taxes and the expenses for the ensuing year, and the district shall appropriate such sum as it deems necessary for all of the expenses that are not disapproved (which disapproval shall not include interest on or principal of any indebtedness created or assumed by the district), together with the amount required to pay any balance left unpaid from the preceding year as will not be met from such estimated revenues, expressing the sum in dollars in its vote. At its first annual meeting, the district shall likewise vote a sum sufficient to pay any unpaid balance of expense, as defined in section 3343 of this title, that has been incurred by or on behalf of the district. Immediately following the annual meeting, the board of water commissioners shall compute the share of each member town in the sums so voted and give notice of the amount to the legislative branch, as defined in section 1751 of this title, of each member town.
(b) The expense of establishing, acquiring, maintaining, extending, improving, and operating a water system for a consolidated water district shall, to the extent that the expense will not be met from the proceeds of indebtedness or from water rates, rents, and other charges received from the use of the water system, be divided among the member towns in accordance with a formula agreed to by the member towns by vote at an annual or special town meeting or, in the absence of any such agreement, as follows: two-thirds of the expense shall be divided in the proportion that the total number of gallons distributed to the inhabitants of each member town of the district bears to the total number of gallons so distributed in all the member towns in the last preceding full calendar year of operation of the district, and the balance of the expense (or all of the expense until the water system has been in operation for at least one full calendar year) shall be divided among the member towns in the proportion that the population of each member town according to the last rental census bears to the total population of the district.
(c) The legislative branch of each member town shall, upon receipt of the notice of the share in the district expenses to be paid by the member town, assess upon the grand list of the member town, in addition to any tax previously voted on the grand list, a tax sufficient to raise the member town’s share in the district expenses. The additional tax as so assessed shall be collected as are other taxes of the member town and be deposited in the member town’s account. The legislative branch of the member town shall order the additional tax to be paid over to the treasurer of the district as collected by the 20th of the month after the member town’s taxes become payable. If by the end of its fiscal year a member town has failed to collect and pay over to the treasurer of the district a sum sufficient to pay the member’s share of the expenses of the district, the legislative branch of the member town shall assess a special tax of five percent on the grand list of the member town, or such multiple thereof as is necessary to make up the unpaid balance of the member town’s share, which special tax shall be collected as are other taxes of the member town. Upon the collection of the special tax, the same shall be paid over to the treasurer of the district. If by the end of its fiscal year a member town fails to pay its share of the expenses of the district, or fails to make up a deficit therein from the preceding year as provided in this subsection, the board of water commissioners of the district may bring a civil action on this statute in the name of the district to recover of the member town twice the amount of the share of the member town as remains unpaid, and upon judgment may levy its execution against any of the real or personal property within the member town.
(Added 1964, No. 20 (Sp. Sess.), § 9, eff. March 10, 1964; amended 2019, No. 131 (Adj. Sess.), § 264.)
§ 3350 Special tax assessment for payment of execution
When a demand is made upon the district for the payment of an execution issued against it and the district has no available funds to pay the same, the board of water commissioners shall compute the share of each member town in such execution, with costs, interest, and other charges, to be paid by it in accordance with the agreement among the member towns or the formula established in section 3349 of this title, and shall give notice of the amount thereof to the legislative branch of each member town. Such member town through its proper officer shall forthwith pay to the treasurer of the district its share of such execution and any charges. If the member town has insufficient funds to pay its said share, its legislative branch shall forthwith assess and have collected a tax sufficient to pay the same in the manner its other taxes are assessed and collected.
(1964, No. 20 (Sp. Sess.), § 10, eff. March 10, 1964.)
§ 3351 Debts and liabilities of member towns
No debt or liabilities of a town that is a member of the district shall accrue against the district.
(1964, No. 20 (Sp. Sess.), § 11, eff. March 10, 1964.)
§ 3352 Tax exemption
Property of a consolidated water district shall be exempt from all taxation by any town within the district.
(1964, No. 20 (Sp. Sess.), § 12, eff. March 10, 1964; amended 1967, No. 209, § 5, eff. April 17, 1967.)
§ 3353 Indebtedness
(a) General obligations. A consolidated water district may incur indebtedness as provided by chapter 53, subchapter 1 of this title and by chapter 89 of this title for the purpose of paying the cost of a water system and improvements to the water system or for funding or refunding, including the payment of premium, any bonds or other evidences of indebtedness issued or assumed by the district, provided, however, that the limits on indebtedness in chapter 53 of this title or otherwise shall not apply to indebtedness incurred or assumed by a consolidated district for the purposes of this chapter.
(b) Joint and severable obligations. Obligations incurred under chapter 53, subchapter 1 and chapter 89 of this title or as otherwise authorized in this chapter by a consolidated water district, except obligations incurred under chapter 53, subchapter 2, shall be the joint and several obligations of the district and the member towns composing it. However, as among the member towns, their respective shares of the obligation shall be apportioned and paid in the manner provided in this chapter. Any joint or several liability incurred by a member town under the provisions of this chapter shall not be considered in determining its debt limit for its own separate purposes. Notwithstanding the limitations in sections 1755 and 1759 of this title, bonds or other evidences of indebtedness of a consolidated water district may be authorized by a majority of the voters present and voting on the question at a district meeting, may be paid in not more than 40 years from their date of issue, may be made callable at the option of the district with or without premium, and the serial maturities of the bonds or evidences of indebtedness may be so arranged that beginning with the first year in which principal is payable, the amount of principal and interest payable in any year shall be as nearly equal as is practicable according to the denominations in which the bonds or other evidences of indebtedness are issued.
(c) Obligations payable solely from revenue. In addition to the authority granted in this section, a consolidated water district may issue bonds or other evidences of indebtedness pursuant to chapter 53, subchapter 2 of this title; provided, however, that no such bonds payable solely from revenues shall be issued while the district has outstanding any bonds or other evidences of indebtedness for which the district and the member towns are jointly and severally liable as provided under this chapter, except notes or other evidences of indebtedness issued temporarily in anticipation of revenue.
(Added 1964, No. 20 (Sp. Sess.), § 13, eff. March 10, 1964; amended 2019, No. 131 (Adj. Sess.), § 265.)
§ 3354 Changes in membership; inclusion of additional towns
(a) When a majority of voters of a town, present and voting at a meeting duly warned for that purpose, vote to apply to a consolidated water district for admission as a member of that district, the vote shall be certified by the clerk of the town to the clerk of the consolidated water district and to the Secretary of State. The vote and certification, if accepted by the consolidated district within two years after the date of the vote, shall be binding on the town without the subsequent vote in the town contemplated in subsections (b) and (c) of this section.
(b) When it appears to the board of water commissioners that the boundaries of a consolidated water district should be changed to include another town, they may insert an article fully describing the proposed change in the warning for a regular or special meeting of the district, which proposed change shall state the number of additional members to be added to the board of water commissioners if the change is approved.
(c) When a majority of the voters voting at such a meeting vote to include an additional town within the boundaries of the consolidated water district as a member of the district, the board of water commissioners shall notify the legislative body of the additional town of the vote. Upon notification, the legislative body of the additional town proposed to be included shall duly warn a meeting of the town, setting forth in the warning the vote of the consolidated water district and the proposed change in its boundaries. If a majority of the voters voting at the meeting of the additional town vote to be included within the district, the result of that vote and the result of the vote already taken by the consolidated water district shall be certified to the Secretary of State, who shall record the same in his or her office. A certificate of the record shall immediately be filed by the Secretary of State in the office of the clerk of the consolidated water district and of any additional town to be included as a member of the district, which filing shall be notice to all parties of the addition to the consolidated district.
(d) A consolidated water district so enlarged shall have all the powers and responsibilities given it by this chapter. Any vacancy on the board of water commissioners created as a result of the increase in the number of member towns shall be filled as provided in section 3343 of this title. The additional member town shall share in the expenses of the district in the proportion provided in this chapter for other member towns from the date the certificate of the Secretary of State is filed in the office of the clerk of the district and the office of the clerk of the additional town.
(Added 1964, No. 20 (Sp. Sess.), § 14, eff. March 10, 1964; amended 1967, No. 209, § 6, eff. April 17, 1967; 2019, No. 131 (Adj. Sess.), § 266.)
§ 3355 Withdrawal from district
(a) A town which is a member of a consolidated water district may vote to withdraw from said district if one year has elapsed since said district has become a body politic and corporate as provided in section 3342 of this title and if said consolidated water district has not voted to bond itself for construction or improvements.
(b) When a majority of the voters of a town present and voting at a town meeting duly warned for that purpose shall vote to withdraw from a consolidated water district such vote shall thereupon be certified by the clerk of the town to the Secretary of State who shall thereupon record such certificate in his or her office, and the membership of the withdrawing town in the consolidated water district to be at an end as of December 31 immediately following or as soon thereafter as the obligations of said withdrawing district as incurred under this chapter have been paid to the district.
(c) A vote of withdrawal taken after a consolidated water district has become a body politic and corporate as provided in section 3342 of this title but less than one year after said date shall be null and void. A vote of withdrawal from a consolidated water district taken after said district has voted to bond itself for construction or improvements shall be null and void.
(1964, No. 20 (Sp. Sess.), § 15, eff. March 10, 1964.)
Chapter 93 State Aid
§§ 3371-3385 Repealed
[Repealed]
1971, No. 97, § 6, eff. April 22, 1971.
Chapter 95 Water Mains and Sewers
§ 3401 Drainage adjacent to cities and incorporated villages
In a town having a municipality within its limits, authorized by law to construct main sewers, drains, and outlets at the expense of the abutters or those interested, where a sewer, drain, or outlet will benefit those outside the limits of such municipality as well as those inside, upon petition of a majority of those interested in its construction, setting forth that they are liable to contribute towards its expense and that the public health and convenience demand it, the selectboard may join the proper officers of such municipality in laying out and constructing the same.
§ 3402 Construction; taking land
With the proper officers of such municipality the selectboard shall cause the same to be constructed, and, for such purpose, may enter upon and construct the same upon private land under the same proceedings as are prescribed for the taking of lands by selectmen for highway purposes. They shall make return of their doings and of the damages awarded by them to the office of the town clerk to be there recorded.
§ 3403 Apportionment of expense
When such sewer, drain, or outlet has been constructed, the selectboard and the same number selected by and from the proper officers of such municipality shall agree upon the proportion of expenses that shall be borne by those inside and those outside the limits of such municipality. In case of a disagreement, the decision of a majority shall be final.
§ 3404 Assessment of parties; notice
When an agreement is made as to the amount that shall be paid by those outside the municipality, as provided in section 3403 of this title, the selectboard shall forthwith give notice to all real estate owners benefited by such sewer, drain, or outlet, when and where they will hear and determine the amount of expense to be borne by each party so benefited. Such notice may be delivered in writing to the party or served like a writ of summons.
§ 3405 Determination of amount; record; lien
At such hearing, the selectboard shall assess each real estate owner outside such municipality benefited by the construction of such sewer, drain, or outlet, his or her proportion of the expense, according to frontage or the benefit received. When such assessment is made and signed by the selectboard or a majority of it, it shall be recorded in the office of the town clerk. When so recorded, it shall be a first lien except taxes and may be enforced, as a tax lien is enforced, upon the land described in the assessment until the same is paid.
§ 3406 Appeal; not to delay construction
When a person is dissatisfied with the decision of the selectboard upon the question of the extent of or necessity for the taking of land for such sewer, drain, or outlet, or in the award of damages therefor or in any assessment for contribution, such person may petition to the Superior Court for a rehearing in the premises. Any number of persons aggrieved may join therein, but such petition shall not delay the laying or repairing of such sewer, drain, or outlet, where the same is for the reassessment of damages or contribution.
(1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1973.)
§ 3407 Proceedings
If for a rehearing upon the question of the extent of or public necessity for taking such land, or on the award of damages, such petition shall be served on the town clerk within 60 days after the return of the doings of the selectmen has been filed in such clerk’s office and, if for a rehearing on the question of assessment, within 60 days after such assessment has been recorded in the office of the town clerk. Such proceedings shall be had on such petition as are provided in case of petitions or appeals from proceedings of the selectmen in taking lands for highway purposes, except as herein provided. The commissioners shall notify the town clerk of the time and place, when and where they will hear the matter. The Superior Court shall have power to make such order in regard to recognizance for costs as it deems necessary.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 3408 Collection
When an assessment remains unpaid for the space of 30 days, the treasurer of the town shall issue a warrant for its collection directed to the collector of taxes, who shall have the same power to enforce the collection and shall proceed in the same manner as is provided by law for the collection of taxes.
§ 3409 Manner of assessment
The proceedings, assessment, and collection of the proportion of expense to be paid by those within the limits of such municipality shall be in the same manner as is provided in their several charters.
§ 3410 Water mains and sewerage outside cities and villages
When the public good and necessity require water mains, drains, sewers, or sewer outlets to be laid out so as to extend into a town outside the limits of a city or village, or when the public good and necessity require that water mains, drains, sewers, or sewer outlets so laid out, be altered or discontinued, the city, by its council, or the village, by its trustees, if the parties interested cannot agree as to the question of public necessity or damages, may apply by petition to the Superior Court of the county where the highways or lands lie that will be occupied or affected by such laying out, alteration, or discontinuance, for the appointment of commissioners to inquire into the necessity of such laying out, alteration, or discontinuance, and of taking or occupying highways or other lands, and as to the damages that will be sustained thereby.
(1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 3411 Service; commissioners
The petition, with a citation, shall be served on the towns, corporations, or persons owning or interested in the highways or lands affected, either as abutting owners or otherwise, as a writ of summons requiring appearance to be made therein within 21 days from the date of service. Unless cause is shown to the contrary, the court shall appoint three disinterested freeholders as such commissioners.
§ 3412 Notice; hearing; report; judgment
The commissioners shall appoint a time and place for hearing and shall give at least 12 days’ notice thereof to the clerk of the municipality and to all persons and municipalities owning or interested in the highways or lands. When they have completed their inquiries, they shall make report to the court. Upon hearing, the court may accept or reject the report in whole or in part, and, by its order, may establish, alter, or discontinue such water mains, drains, sewers, or sewer outlets, in whole or in part, may render judgment for such damages as may be sustained, may tax costs as appears just, and may issue execution for such damages and costs.
§ 3413 Sewers in towns; powers of the selectboard; petition
The selectboard of a town shall have the same authority to construct a sewer in a village in that town as is given by this chapter to selectboard of a town having a municipality within its limits. However, before acting, the selectboard shall receive a petition signed by 10 or more legal voters of such town asking them to construct a sewer or sewers in such village or an order of the State Board of Health authorizing them so to do.
(Amended 1959, No. 329 (Adj. Sess.), § 27, eff. March 1, 1961.)
§ 3414 Hearing; assessment
Upon receiving such petition, the selectboard shall give 10 days’ notice of a hearing upon the public necessity for the construction of such sewer by posting notices to that effect in three public places in such village. When, after notice and hearing, the selectboard decide that the public good requires the construction of such sewer, they may proceed to construct the same at the expense of the town. They then shall notify all parties who will be benefited thereby to appear before them to be heard upon the apportionment of the cost of such sewer among those benefited, by giving to each of such persons a written notice of the time and place of such hearing, signed by a majority of the selectboard, which notice shall be given not less than 10 days before such hearing. All parties benefited by the construction of such sewer shall be assessed for the construction of the same according to the benefit received.
§ 3415 Taking land; proceedings
The selectboard shall have the same powers in the taking of land for the construction of such sewer, in the assessment of damages therefor, in the assessment for benefits conferred and in all proceedings necessary for carrying out the provisions of this section and sections 3413 and 3414 of this title, as are conferred upon the selectboard by this chapter. The same right of appeal is hereby given to persons dissatisfied with the decision of the selectboard upon the question of the public necessity for taking land, the assessment of damages therefor, or the assessment of contribution for the construction of such sewer, as is given to such persons by this chapter.
Chapter 97 Sewage System [Repealed.]
§§ 3501-3509 Repealed
[Repealed]
(Repealed by 2023, No. 143 (Adj. Sess.), § 15, eff. July 1, 2024.)
Chapter 99 Assistance for Separation of Sewers
§§ 3551-3560 Repealed
[Repealed]
1971, No. 97, § 6, eff. April 22, 1971.
Chapter 101 Sewage, Sewage Disposal, and Stormwater Systems
§ 3601 Definitions
As used in this chapter:
(1) “Board” means the board of sewage system commissioners.
(2) “Domestic sewage” or “house sewage” means sanitary sewage derived principally from dwellings, business buildings, and institutions.
(3) “Industrial wastes” or “trade wastes” means liquid wastes from industrial processes, including suspended solids.
(4) “Necessity” means a reasonable need that considers the greatest public good and the least inconvenience and expense to the condemning party and to the property owner. Necessity shall not be measured merely by expense or convenience to the condemning party. Due consideration shall be given to the adequacy of other property and locations; to the quantity, kind, and extent of property that may be taken or rendered unfit for use by the proposed taking; to the probable term of unfitness for use of the property; to the effect of construction upon scenic and recreational values, upon home and homestead rights and the convenience of the owner of the land; to the effect upon town grand list and revenues.
(5) “Sanitary sewage” means used water supply commonly containing human excrement.
(6) “Sanitary treatment” means an approved method of treatment of solids and bacteria in sewage before final discharge.
(7) “Sewage” means the used water supply of a community, including such used water supply or stormwater as may or may not be mixed with these liquid wastes from the community.
(8) “Sewage system” means any equipment, stormwater control system, pipeline system, and facilities as are needed for and appurtenant to the treatment or disposal of sewage and waters, including a sewage treatment or disposal plant and separate pipelines and structural or nonstructural facilities as are needed for and appurtenant to the treatment or disposal of storm, surface, and subsurface waters.
(9) The phrase “sewage treatment or disposal plant” includes, for the purposes of this chapter, any plant, equipment, system, and facilities, whether structural or nonstructural, as are necessary for and appurtenant to the treatment or disposal by approved sanitary methods of domestic sewage, garbage, industrial wastes, stormwater, or surface water.
(10) “Stormwater” has the same meaning as “stormwater runoff” under 10 V.S.A. § 1264.
(11) “Stormwater management system” means any structure, or improvement, whether structural or nonstructural, necessary for collecting, containing, controlling, treating, or conveying stormwater, including sewers, curbs, drains, conduits, natural and man-made channels, settling ponds, pipes, and culverts.
(1963, No. 214, § 1; amended 2001, No. 109 (Adj. Sess.), § 8, eff. May 16, 2002; 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§§ 3601a-3601f [Renumbered.]
§ 3602 Board of commissioners; membership
(a) Except as provided for in subsection (b) of this section, the selectboard of a town, the trustees of a village, the prudential committee of a fire or lighting district, or the mayor and board of aldermen of a city, shall be the board of commissioners for the sewage system of a municipality.
(b) The legislative body of the municipality may vote to constitute a separate board of sewage system commissioners. The board shall have not less than three nor more than seven members, who shall be residents of the municipality. Members shall be appointed, and any vacancy filled, by the legislative body of the municipality. The term of each member shall be four years. Any member may be removed by the legislative body of the municipality for just cause after due notice and hearing.
(Added 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3603 Board of commissioners; duties and authority
(a) The board shall have the supervision of the municipal sewage system and shall make and establish all needed rates for rent and rules for control and operation of the system. The board may require:
(1) the owners of buildings, subdivisions, or developments abutting a public street or highway to have all sewers from those buildings, subdivisions, or developments connected to the municipal corporation’s sewer system; and
(2) any individual, person, or corporation to connect to the municipal sewage system for the purposes of abating pollution of the waters of the State.
(b) The commissioners may appoint or remove a superintendent at their pleasure.
(Added 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3604 Sewage system; construction
A municipal corporation may:
(1) construct, maintain, operate, and repair a sewage system;
(2) pursuant to the procedures established in this chapter, take, purchase, and acquire real estate and easements necessary for its purposes;
(3) may enter in and upon any land for the purpose of making surveys; and
(4) may lay and connect pipes, stormwater management systems, and sewers as may be necessary to convey and treat stormwater runoff or sewage and dispose of sewage.
(Amended and renumbered from 24 V.S.A. § 3602 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3605 Entry on lands
A municipal corporation, for the purposes enumerated in section 3604 of this chapter, may:
(1) enter upon and use any land and enclosures over or through which it may be necessary for pipes, stormwater management systems, and sewer to pass;
(2) at any time, place, lay, and construct any pipes and sewers, appurtenances, and connections as may be necessary for the complete construction and repairing of the system; and
(3) open the ground in any streets, lanes, avenues, highways, and public grounds for the purposes described in this section, provided that the streets, lanes, avenues, highways, and public grounds shall not be injured but shall be left in as good condition as before the laying of the pipes, stormwater management systems, and sewers.
(Amended and renumbered from 24 V.S.A. § 3603 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3606 Petition for hearing to determine necessity
The municipal corporation may agree with all the owners of land or interest in land affected by a survey made under section 3604 of this chapter for the conveyance of the owners’ interest. Where the agreement is not made, the board shall petition the Civil Division of the Superior Court, setting forth in the petition that the board proposes to take certain land, or rights in the land, and describing the lands or rights. The survey shall be included in the petition. The petition shall set forth the purposes for which the land or rights are desired and shall contain a request that the court fix a time and place when the court will hear all parties concerned and determine whether the taking is necessary.
(1963, No. 214, § 2; renumbered from 24 V.S.A. § 3604 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3607 Hearing to determine necessity
The judge to whom the petition is presented shall fix the time for hearing, which shall not be more than 60 or less than 30 days from the date the judge signs the order. Likewise, the judge shall fix the place for hearing, which shall be the county courthouse or any other convenient place within the county in which the land in question is located. If the Superior judge to whom the petition is presented cannot hear the petition at the time set for the hearing, the Chief Superior Judge shall assign another Superior judge to hear the cause at the time and place assigned in the order.
(1963, No. 214, § 3; amended 2021, No. 147 (Adj. Sess.), § 28, eff. May 31, 2022; renumbered from 24 V.S.A. § 3605 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3608 Service and publication of petition
(a) A copy of the petition together with a copy of the court’s order fixing the time and place of hearing shall be published in a newspaper having general circulation in the town in which the land included in the survey lies once a week for three consecutive weeks on the same day of the week. The last publication to be not less than five days before the hearing date.
(b) A copy of the petition, together with a copy of the court’s order fixing the time and place of hearing, and a copy of the survey shall be placed on file in the clerk’s office of the town.
(c) The petition, together with the court’s order fixing the time and place of hearing, shall be served upon each person owning or having an interest in land to be purchased or condemned like a summons, or, on absent defendants, in the manner as the Supreme Court may by rule provide for service of process in civil actions. If the service on any defendant is impossible, upon affidavit of the sheriff, deputy sheriff, or constable attempting service, stating that the location of the defendant within or outside the State is unknown and that the defendant has no known agent or attorney in the State of Vermont upon whom service may be made, the publication required by this section shall be deemed sufficient service on the defendant.
(d) Compliance with the provisions of this section shall constitute sufficient service upon and notice to any person owning or having any interest in the land proposed to be taken or affected.
(1963, No. 214, § 4; amended 1971, No. 185 (Adj. Sess.), § 203, eff. March 29, 1972; renumbered from 24 V.S.A. § 3606 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3609 Hearing and order of necessity
(a) At the time and place appointed for the hearing, the court shall hear all persons interested and wishing to be heard. If any person owning or having an interest in land to be taken or affected appears and objects to the necessity of taking the land included within the survey or any part of the survey, then the court shall require the board to proceed with the introduction of evidence of the necessity of the taking.
(b) The burden of proof of the necessity of the taking shall be upon the board.
(c) The court may cite in additional parties including other property owners whose interests may be concerned or affected by any taking of land or interest in land based on any ultimate order of the court.
(d) The court shall make findings of fact and file them. The court shall, by its order, determine whether necessity requires the taking of land and rights and may modify or alter the proposed taking as the court may deem proper.
(1963, No. 214, § 5; renumbered from 24 V.S.A. § 3607 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3610 Appeal from order of necessity
(a) If the State, municipal corporation, or any owner affected by the order of the court is aggrieved by the order, an appeal may be taken to the Supreme Court in the manner as the Supreme Court may by rule provide for appeals from the Civil Division of the Superior Court.
(b) In the event an appeal is taken, all proceedings shall be stayed until final disposition of the appeal. If no appeals are taken within the time provided or, if appeal is taken, upon its final disposition, a copy of the order of the court shall be placed on file within 10 days in the office of the clerk of each town in which the land affected lies, and for a period of one year, the board may institute proceedings for the condemnation of the land included in the survey as finally approved by the court without further hearing or consideration of any question of the necessity of the taking.
(1963, No. 214, § 6; amended 1971, No. 185 (Adj. Sess.), § 204, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; renumbered from 24 V.S.A. § 3608 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3611 Compensation; condemnation
(a) When an owner of land or rights in land and the board are unable to agree on the amount of compensation or in case the owner is an infant, a person who lacks capacity to protect the person’s interests due to a mental condition or psychiatric disability, absent from the State, unknown, or the owner of a contingent or uncertain interest, a Superior judge may, on the application of either party, cause the notice to be given of the application as the judge may prescribe, and after proof of the application, the judge may appoint three disinterested persons to examine the property to be taken or damaged by the municipal corporation.
(b) After being duly sworn, the commissioners shall, upon due notice to all parties in interest, view the premises, hear the parties in respect to the property, and shall assess and award to the owners and persons so interested just damages for any injury sustained and make report in writing to the judge.
(c) In determining damages resulting from the taking or use of property under the provisions of this chapter, the added value, if any, to the remaining property or right in property that inures directly to the owner as a result of the taking or use as distinguished from the general public benefit shall be considered.
(d) The judge may accept the report, unless just cause is shown to the contrary, and order the municipal corporation to pay the same in the time and manner as the judge may prescribe, in full compensation for the property taken, or the injury done by the municipal corporation, or the judge may reject or recommit the report if the ends of justice so require. On compliance with the order, the municipal corporation may proceed with the construction of its work without liability for further claim for damages. In the judge’s discretion, the judge may award costs in the proceeding. Appeals from the order may be taken to the Supreme Court under 12 V.S.A. chapter 102.
(Amended 1963, No. 214, § 7; 2013, No. 96 (Adj. Sess.), § 155; renumbered from 24 V.S.A. § 3609 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3612 Record
Within 60 days after the taking of any property, franchise, easement, or right under the provisions of this chapter, the municipal corporation shall file a description of the property in the office of the clerk where the land records are required by law to be kept.
(Amended and renumbered from 24 V.S.A. § 3610 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3613 Contract for sewage disposal
(a) A municipal corporation may contract with the State, the federal government, or any appropriate agency of the State or federal government; any town, city, or village; any corporation; and any individuals to make disposal of sewage or stormwater for the other town, city, village, corporation, or individuals. When consistent with State or federal law, the municipal corporation may make sale of sludge or fertilizer byproducts incident to sewage disposal, and the proceeds from the sale shall be turned over to the treasury of the sewage system and credited as is other income derived under the authority of this chapter.
(b) A municipal corporation is authorized to enter into, with any contracting party or parties, contracts, leases, or lease-purchase agreements with respect to the construction, operation, and maintenance of sewage disposal plants. These contracts may be entered into for terms not to exceed 40 years or the useful life of the plant, whichever is less.
(Amended 1983, No. 191 (Adj. Sess.), § 1; renumbered from 24 V.S.A. § 3611 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3614 Charges; enforcement
(a) A property owner or group of property owners using the sewage system shall be liable for the rent fixed by the board pursuant to this chapter. The charges, rates, or rents for the sewage system shall be a lien upon the real estate furnished with such service in the same manner and to the same effect as taxes are a lien upon real estate under 32 V.S.A. § 5061 and shall be an assessment enforceable under the procedures in subsection (b), (c), or (d) of this section, or a combination of these procedures.
(b) When an assessment remains unpaid for a period of 30 days, the treasurer of the municipality may issue a warrant for its collection directed to the collector of taxes, who shall have the same power to enforce the collection and shall proceed in the same manner as provided by law for the collection of taxes under 32 V.S.A. chapter 133, subchapter 9.
(c) When the ratepayer fails to render payment for a valid bill or charge within 30 days of the postmark on the bill or on the due date, the appointed and elected municipal officials may proceed with collection of the delinquency as provided in chapter 129 of this title.
(d) When an assessment remains unpaid for two years, the municipal officials may proceed to enforce the lien as provided in 32 V.S.A. chapter 133, subchapter 8.
(Amended 1983, No. 54, § 2; 1987, No. 24, § 2; 1989, No. 45, § 4; renumbered from 24 V.S.A. § 3612 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3615 Taxes; bonds
For the purpose of adequately making disposal of sewage within its boundaries; successfully organizing, establishing, and operating its sewage plant, sewage disposal plant, or some form of sewage treatment plant; and making improvements as may be necessary, a municipal corporation may:
(1) purchase, take, and hold real and personal estate;
(2) borrow money;
(3) levy and collect taxes upon the ratable estate of the municipal corporation necessary for the payment of municipal corporation sewage and sewage disposal expenses and indebtedness;
(4) issue for the purposes of this section evidences of indebtedness pursuant to chapter 53, subchapter 2 of this title or its negotiable bonds pursuant to chapter 53, subchapter 1 of this title; provided, however, that bonds so issued:
(A) shall not be considered as indebtedness of the municipal corporation limited by the provisions of section 1762 of this title;
(B) may be paid in not more than 30 years from the date of issue notwithstanding the limitation of section 1759 of this title;
(C) may be authorized by a majority of all the voters present and voting on the question at a meeting of the municipal corporation held for this purpose pursuant to chapter 53, subchapter 1 of this title notwithstanding any provisions of general or special law that may require a greater vote, and may be so arranged that beginning with the first year in which principal is payable, the amount of principal and interest in any year shall be as nearly equal as is practicable according to the denomination in which the bonds or other evidences of indebtedness are issued notwithstanding other permissible payment schedules authorized by section 1759 of this title.
(Amended 1959, No. 207, § 2; 1961, No. 96, eff. May 3, 1961; 1971, No. 166 (Adj. Sess.), § 2, eff. March 22, 1972; renumbered from 24 V.S.A. § 3613 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3616 Rents; rates
(a) A municipal corporation, through its board, may establish rates, rents, or charges to be paid as the board may prescribe. The board may establish annual charges separately for bond repayment, fixed operations and maintenance costs, and variable operations and maintenance costs dependent on flow.
(b) The rates, rents, or charges may be based upon:
(1) the metered consumption of water on premises connected with the sewer system; however, the board may determine no user will be billed for fixed operations and maintenance costs and bond payment less than the average single-family charge;
(2) the number of equivalent units connected with or served by the sewage system based upon their estimated flows compared to the estimated flows from a single-family dwelling; however, the board may determine no user will be billed less than the minimum charge determined for the single-family dwelling charge for fixed operations and maintenance costs and bond payment;
(3) the strength and flow where wastes stronger than household wastes are involved;
(4) the appraised value of premises, in the event that the commissioners shall determine the sewage disposal plant to be of general benefit to the municipality regardless of actual connection with the same;
(5) the commissioners’ determination developed using any other equitable basis such as the number and kind of plumbing fixtures; the number of persons residing on or frequenting the premises served by those sewers; and the topography, size, type of use, or impervious area of any premises;
(6) for groundwater, surface, or stormwater an equivalent residential unit based on an average or median of the area of impervious surface on residential property within the municipality; or
(7) any combination of these bases, provided the combination is equitable.
(c) The basis for establishing rates, rents, or charges shall be reviewed annually by the board. No premises otherwise exempt from taxation, including premises owned by the State of Vermont, shall, by virtue of the exemption, be exempt from charges established under this section. The commissioners may change the rates, rents, or charges as may be reasonably required.
(d) Where one of the bases of a rent, rate, or charge is the appraised value and the premises to be appraised are tax exempt, the board may cause the listers to appraise the property, including State property, for the purpose of determining the rates, rents, or charges. The right of appeal from the appraisal shall be the same as provided in 32 V.S.A. chapter 131. The Commissioner of Finance and Management is authorized to issue warrants for rates, rents, or charges against State property and transmit to the State Treasurer who shall draw a voucher in payment of the rates, rents, or charges. No charge so established and no tax levied under the provisions of section 3615 of this title shall be considered to be a part of any tax authorized to be assessed by the legislative body of any municipality for general purposes but shall be in addition to any such tax so authorized to be assessed.
(e) Rates, rents, or charges established in accord with this section may be assessed by the board to derive the revenue required to pay pollution charges assessed against a municipal corporation under 10 V.S.A. § 1263.
(f) When a rate, rent, or charge established under this section for the management of stormwater is applied to property owned, controlled, or managed by the Agency of Transportation, the charge shall not exceed the highest rate category applicable to other properties in the municipality, and the Agency of Transportation shall receive a 35 percent credit on the charge. The Agency of Transportation shall receive no other credit on the charge from the municipal corporation.
(Amended 1959, No. 111, eff. April 14, 1959; 1971, No. 97, § 5, eff. April 22, 1971; 1973, No. 112, § 8, eff. April 25, 1973; 1983, No. 195 (Adj. Sess.), § 5(b); 1989, No. 45, § 5; 2001, No. 109 (Adj. Sess.), § 9, eff. May 16, 2002; 2015, No. 158 (Adj. Sess.), § 29, eff. June 2, 2016; renumbered from 24 V.S.A. § 3615 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024; 2025, No. 37, § 11, eff. July 1, 2025.)
§ 3617 Duties; use of proceeds
(a) The charges and receipts of the department shall only be used and applied to pay the interest and principal of the sewage disposal bonds of the municipal corporation, the expense of maintenance and operation of the sewage system, or other expenses of the sewage system.
(b) The charges and receipts also may be used to develop a dedicated fund that may be created by the board to finance major rehabilitation, major maintenance, and upgrade costs for the sewer system. This fund may be established by an annual set-aside of up to 15 percent of the normal operations, maintenance, and bond payment costs, except that with respect to subsurface leachfield systems, the annual set-aside may equal up to 100 percent of these costs. The fund shall not exceed the estimated future major rehabilitation, major maintenance, or upgrade costs for the sewer system. Any dedicated fund shall be insured at least to the level provided by FDIC and withdrawals shall be made only for the purposes for which the fund was established. Any dedicated fund may be established and controlled in accord with section 2804 of this title or may be established by act of the legislative body of the municipality. Funds so established shall meet the requirements of subdivision 4756(a)(4) of this title.
(c) Where the municipal legislative body establishes a dedicated fund pursuant to this section, it shall first adopt a municipal ordinance authorizing and controlling the funds. The ordinance and any local policies governing the funds must conform to the requirements of this section.
(d) The charges, receipts, and revenue may also be used for stormwater management, control, and treatment; flood resiliency; floodplain restoration; and other similar measures.
(Amended 1967, No. 181, § 3, eff. April 17, 1967; 1989, No. 45, § 6; 2003, No. 115 (Adj. Sess.), § 81, eff. Jan. 31, 2005; renumbered from 24 V.S.A. § 3616 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3618 Ordinances
The municipal corporation shall have the power to make, establish, alter, amend, or repeal ordinances, regulations, and bylaws relating to the matters contained in this chapter, consistent with law, and to impose penalties for the breach of an ordinance and enforce those penalties.
(Amended and renumbered from 24 V.S.A. § 3617 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§ 3619 Meetings; vote
Any action taken by a municipal corporation under the provisions of this chapter or relating to the matters contained in this chapter, may be taken by vote of the legislative body of the municipal corporation, excepting the issuance of bonds and, in municipalities wherein the legislative body is not otherwise given the power to levy taxes, the levying of a tax under section 3615 of this title; provided, however, that no action shall be taken hereunder unless the construction of a sewage disposal plant shall have first been authorized by majority vote of the legal voters of the municipal corporation attending a meeting warned for that purpose.
(Amended and renumbered from 24 V.S.A. § 3618 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)
§§ 3619-3624 Repealed
[Repealed]
1971, No. 97, § 6, eff. April 22, 1971.
§ 3625 Allocation of sewage capacity
(a) When capacity under an original or amended discharge permit under 10 V.S.A. § 1263 is or has been granted to any municipality, as defined in 1 V.S.A. § 126, except existing town school districts or incorporated school districts, that capacity shall be allocated, in a manner consistent with a municipality’s obligation to its bondholders to establish rates and apply the proceeds as set forth in section 3616 of this title, pursuant to one of the following, whether in the form as adopted, or as later amended:
(1) An ordinance adopted under sections 1972 and 1973 of this title. This ordinance may authorize the municipality to include, in any specific allocation, phasing provisions and other conditions intended to implement provisions of a municipal plan adopted under section 4385 of this title or bylaws adopted under section 4442 of this title.
(2) Bylaws adopted under section 4442 of this title.
(3) Interim bylaws adopted under section 4415 of this title.
(b) Until an ordinance, interim bylaw, or bylaw for allocation of capacity is adopted by a municipality that grants zoning permits pursuant to the provisions of section 4449 of this title:
(1) Capacity may be allocated in amounts not to exceed 6,500 gallons per day, per recipient, and only upon granting of such a permit.
(2) Capacity allocated in conjunction with a permit granted pursuant to the provisions of section 4443 of this title shall revert to the municipality if the permit recipient has failed to initiate construction within one year of the issuance of the permit or has failed to complete construction within three years of the issuance of the permit. At the end of the three-year period, the reserve capacity associated with any unconstructed portion of the project, as determined by the legislative body of the municipality, shall revert to the issuing municipality unless that municipality has specifically required that construction proceed over a period longer than three years.
(3) The legislative body of the municipality shall make the final determination with respect to whether construction has been initiated or completed.
(c) Until an ordinance for allocation of capacity is adopted by a municipality that does not grant zoning permits pursuant to the provisions of section 4449 of this title:
(1) Capacity may be allocated only in amounts not to exceed 6,500 gallons per day, per recipient, and only upon granting of capacity by the municipal legislative body during a duly warned meeting.
(2) Capacity allocated under this subsection shall revert to the municipality if the capacity recipient has failed to initiate construction within one year of the issuance of the allocation or has failed to complete construction within three years of the issuance of the allocation. At the end of the three-year period, the reserve capacity associated with any unconstructed portion of the project, as determined by the legislative body of the municipality, shall revert to the issuing municipality unless that municipality has specifically required that construction proceed over a period longer than three years.
(3) The legislative body of the municipality shall make the final determination with respect to whether construction has been initiated or completed.
(d) When a municipality is not a town, city, or incorporated village, the towns, cities, or incorporated villages in which the municipality is located shall allocate capacity within their corporate boundaries in accordance with the provisions of this section.
(e) This section shall not apply to capacity that is committed or allocated before July 1, 1989. Capacity is committed by a town, city, incorporated village, or fire district when, following issuance of an original or amended discharge permit, formal action to commit is taken by the legislative body at a duly warned meeting. Capacity obtained by a municipality through an intermunicipal contract that existed on July 1, 1989, shall be treated as capacity granted to that municipality, and shall be distributed by that municipality according to the provisions of this section.
(Added 1989, No. 116, § 1; amended 2003, No. 63, § 52, eff. June 11, 2003; 2019, No. 131 (Adj. Sess.), § 267.)
Chapter 102 On-Site Sewage Systems
§ 3631 Definition
As used in this chapter:
(1) “Sewage system” means an on-site sewage disposal system.
(2) “Proper performance” means a sewage system which operates so as to:
(A) prevent surfacing of sewage and the creation of a health hazard; and
(B) prevent the pollution and contamination of drinking water supplies, groundwater, and surface water; and
(C) maintain sanitary and healthful conditions during operation.
(Added 1983, No. 117 (Adj. Sess.), § 1.)
§ 3632 Standards for ordinances
(a) The Secretary of Natural Resources shall adopt by rule minimum standards for municipal ordinances regulating sewage systems.
(b) The purpose of these standards shall be to achieve the proper performance of sewage systems.
(c) The rules may contain recommended procedures for municipalities to use in considering applications for permits.
(d) The rules shall contain standards and procedures for approving innovative sewage systems.
(Added 1983, No. 117 (Adj. Sess.), § 1.)
§ 3633 Ordinance
(a) A municipality may adopt an ordinance under chapter 59 of this title relating to sewage systems.
(b) The ordinance shall not take effect until it is approved by the Department of Environmental Conservation as being at least as stringent as the minimum standards under section 3632 of this title.
(c) The ordinance shall describe the officer or officers, which may include the local health officer, responsible for its enforcement.
(d) Municipal ordinances relating to sewage systems that were approved before July 1984 under 18 V.S.A. § 613 by the Board of Health shall remain in effect and shall be deemed to have been adopted and approved under this section. Municipal ordinances relating to sewage systems that were approved before July 1984 by the Commissioner of Health shall remain in effect until either the ordinance has been approved pursuant to this chapter or July 1, 2002, whichever occurs first.
(Added 1983, No. 117 (Adj. Sess.), § 1; amended 1987, No. 76, § 18; 1993, No. 180 (Adj. Sess.), § 3; 1997, No. 51, § 4; 1997, No. 161 (Adj. Sess.), § 19a; 1999, No. 161 (Adj. Sess.), § 6.)
§ 3634 Permit
An ordinance under this chapter shall require a permit for the installation or replacement of sewage systems.
(Added 1983, No. 117 (Adj. Sess.), § 1.)
§ 3635 Limitation
Nothing in this chapter or in any ordinance relieves any person of obligations under the law for the proper performance of a sewage system.
(Added 1983, No. 117 (Adj. Sess.), § 1.)
Chapter 103 Sewage Facilities Incentive Grants
§§ 3651-3656 Repealed
[Repealed]
1971, No. 97, § 6, eff. April 22, 1971.
Chapter 105 Consolidated Sewer Districts
§ 3671 Policy
It is the policy of the State to authorize two or more contiguous towns or other municipal corporations to join together to establish a consolidated sewer district for the purpose of developing, acquiring, or improving a sewage system for the purpose of disposing of the sewage from the district.
(1967, No. 318 (Adj. Sess.), § 1a, eff. March 22, 1968.)
§ 3672 Definitions
(a) As used in this chapter, the following words and terms shall have the following meanings unless the context indicates another or different meaning or intent:
(1) “Town” means any municipality within the meaning of 1 V.S.A. § 126.
(2) “Sewage system” includes such equipment, pipeline systems, and facilities as are needed for and appurtenant to the treatment or disposal of sewage and waters, including sewage treatment plants and separate pipelines and structural or nonstructural facilities as are needed for and appurtenant to the treatment or disposal of storm, surface, and subsurface waters, and all properties, rights, easements, and franchises relating thereto and deemed necessary or convenient by the sewer commission for the operation thereof.
(3) “Sewage” means the used water supply of a community, including such groundwater, surface, and stormwater as may or may not be mixed with liquid wastes from the community.
(4) “Stormwater” means the excess water from rainfall.
(5) “Surface water” means water other than stormwater flowing or standing on or over the surface of the ground.
(6) “Groundwater” means water existing beneath the surface of the ground.
(7) “Improvements” means such repairs, replacements, additions, extensions, and betterments of and to a sewage system as are deemed necessary by the sewer commissioners to place or maintain such system in proper condition for its safe, efficient, and economic operation or to meet requirements for service in such areas which may be served by the district and for which no existing service is being rendered.
(8) “Costs” as applied to a sewage system include the purchase price of any such system, the cost of construction, the cost of all labor, materials, machinery, and equipment, the cost of improvements, the cost of all lands, property, rights, easements, and franchises acquired, financing charges, interest prior to and during construction and, if deemed advisable by the sewer commissioners for one year after completion of construction, cost of plans and specifications, surveys, and estimates of cost and of revenues, cost of engineering and legal services, and all other expenses necessary or incident to determining the feasibility or practicability of such construction.
(b) A consolidated sewer district shall be deemed to be a municipality within the meaning of 1 V.S.A. § 126.
(1967, No. 318 (Adj. Sess.), § 1b, eff. March 22, 1968; amended 2001, No. 109 (Adj. Sess.), § 10, eff. May 16, 2002.)
§ 3673 Organization and operation—Establishment of consolidated sewer district
(a) When a majority of the voters of each town of a proposed consolidated sewer district present and voting in each case by Australian ballot at a town meeting duly warned for that purpose for the same day and during the same hours that shall be at least eight consecutive hours shall vote to join with one or more neighboring towns as specified in the warning for the purpose of forming a consolidated sewer district as provided under this chapter, vote shall thereupon be certified by the clerk of each town to the Secretary of State; and when all towns proposed as members of the consolidated sewer district as specified in such vote shall have so affirmatively voted and the results thereon shall have been certified to the Secretary of State, the Secretary of State shall thereupon file the same in his or her office and shall send a written notice to the clerk of each town to be included in the consolidated sewer district that the requirements of this section have been met by each town in the said district. Upon the filing of such records in the Office of the Secretary of State, such consolidated sewer district shall become a body politic and corporate with the powers incident to a public corporation and such records shall be notice to all parties of the establishment of such consolidated sewer district with all the powers incident to such a district as herein provided; and such filing shall be prima facie evidence that the requirements for the creation of a consolidated sewer district as herein set forth have been fully complied with. A consolidated sewer district may sue and be sued and may hold and convey real estate and personal estate for the use of the district and shall have and may exercise the powers and be subject to the duties and obligations of a municipal corporation provided for in 10 V.S.A. chapter 55 and chapters 97 and 101 of this title so far as the same may be applicable and except as otherwise provided in this chapter.
(b) A consolidated sewer district may enter into agreements with the State or federal government or any agency of either or any corporation, commission or board authorized by the State or federal government to grant or loan money to or otherwise assist in the financing of projects that a consolidated sewer district is authorized to carry out, and to accept grants and borrow money from any such agency, corporation, commission, or board, as may be necessary or desirable to carry out the purposes of this chapter.
(1967, No. 318 (Adj. Sess.), § 2, eff. March 22, 1968; amended 1971, No. 97, § 1, eff. April 22, 1971.)
§ 3674 Organizational meeting
(a) Within 60 days after the Secretary of State has notified the clerks of the member towns that the requirements of section 3673 of this title have been met, the voters in such consolidated sewer district shall meet to organize the district. The meeting shall be warned by the chair of the legislative body of each town of the district or by a member designated by his or her respective board to act in the chair’s stead, and shall state the day, hour, and place within the district where the meeting will be held and shall be posted in not less than six public places in the district including at least two public places within each member town thereof and shall be published three times in a newspaper circulating therein, the last publication to be at least six days previous to the day of the meeting. The meeting shall be called to order by the clerk of the town in which the meeting is held, whereupon a temporary presiding officer and clerk shall be elected from among the qualified voters. At the organizational meeting or an adjournment thereof, the district shall elect a moderator and a permanent clerk, shall determine the number of sewer commissioners constituting the board of sewer commissioners and shall elect a board of sewer commissioners, who shall be the legislative branch, a treasurer, and three auditors. All officers elected at the organizational meeting shall hold office until others are elected and qualified following the first annual meeting. The total number of sewer commissioners and the number from each member town may be agreed upon by the several member towns in advance of the organizational meeting or in the absence of such agreement shall be set by the organizational meeting at not less than three, including at least one from each member town. Sewer commissioners elected at the organizational meeting shall be elected from nominations made by the several member towns at their most recent annual or special meeting, if such nominations have been made. Sewer commissioners to serve on the board of sewer commissioners of the consolidated district following the first annual meeting shall be elected by the member towns at their own annual or special meetings. Such elections shall be by Australian ballot in those member towns which elect their respective legislative branches by Australian ballot. All other consolidated sewer district officers shall be elected by the consolidated district. When there is only one nominee for any of the aforementioned offices, 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 declared to be legally elected.
(b) At the organizational meeting or at an adjournment thereof, the district may further authorize its board of sewer commissioners to pay any expense incurred by or on behalf of the district in the period between the date on which the member towns voted to join the district and the first annual meeting of the district. The word “expense” as used in this chapter shall include the cost of architects, surveyors, engineers, contractors, lawyers, or experts as well as current operating expenses to be incurred by the district from its organizational meeting until its first annual meeting. The district may authorize its board of sewer commissioners to borrow money pending receipt of payments from the member towns as hereinafter provided by the issuance of its notes or orders payable not later than one year from the date. At the organizational meeting the district shall further select a name for the district, determine compensation, if any, to be paid to its officers, determine the date on which its annual meeting shall be held (which shall not be earlier than October 1 or later than December 31), and adopt a seal. A certified copy of the vote designating the name of the consolidated sewer district shall be forthwith filed by the clerk of the district with the Secretary of State.
(c) All district officers elected at an annual meeting and sewer commissioners elected by their constituent towns shall enter upon their duties on April 1 following their election, unless a different date is set at an annual meeting. A vacancy occurring in any district office caused by death, resignation, removal from the district, or incapacity of an officer to carry his or her duties, shall be temporarily filled by the board of sewer commissioners within 10 days after the vacancy occurs and until the date when the newly elected officers take office. The vacancy shall be filled at the next annual meeting of the district. The term of office of the sewer commissioners and the auditors shall be three years and all other officers one year. At the first annual meeting, the terms of office of the commissioners shall be divided by agreement; if possible by lot, if not, one-third expiring after one year, and one-third expiring after two years, or as nearly as may be. At the first annual meeting one auditor shall be elected for one year and one auditor for two years, and thereafter for three years or until their successors are chosen and qualified.
(d) The fiscal year of a consolidated sewer district shall be the calendar year. If the change in the date of an annual meeting is to be made, a notice of the proposed change shall be inserted in the warning of the annual meeting.
(1967, No. 318 (Adj. Sess.), § 3, eff. March 22, 1968.)
§ 3675 Warnings of meeting
(a) Meetings shall be warned by the clerk, or in case of his or her inability to act, by a majority of the sewer commissioners, by posting a notice thereof, specifying the time, place, and business of the meeting, in not less than five public places in the district, including at least one public place in each member town, at least 10 days before the time therein specified and by causing the same to be published in a paper circulating in the district, the publication to be not less than 10 days before the date of the meeting, and the warning shall be recorded in the office of the clerk before being posted.
(b) Any meeting called for the purpose of considering a bond issue shall be warned as provided for in chapter 53, subchapter 1 of this title.
(c) The sewer commissioners shall have the same authority and obligation to warn or call meetings of the district as the selectboard members have to warn or call town meetings.
(Added 1967, No. 318 (Adj. Sess.), § 4, eff. March 22, 1968.)
§ 3676 Eligibility of voters
Persons residing within the limits of the district, who are qualified voters in their town meetings, shall be voters in the district meeting. The moderator, clerk, and members of the board of sewer commissioners shall decide all questions as to the eligibility of a person to vote at a district meeting.
(1967, No. 318 (Adj. Sess.), § 5, eff. March 22, 1968.)
§ 3677 Check list
The clerk of each town within a consolidated sewer district shall furnish to the clerk of the district, at the expense of the district, authenticated copies of the check lists of legal voters within the town as the same appears after revision of the check list before the last town meeting, annual or special, preceding the date of the district meeting, which check list shall control for the purposes of determining the voters eligible to vote at the district meeting. Whenever a matter, including bond issues under chapter 53, subchapter 1 of this title, is to be determined by ballot or voting machine, the regular polling places within the district shall be used.
(1967, No. 318 (Adj. Sess.), § 6, eff. March 22, 1968.)
§ 3678 Record of proceedings
The clerk shall keep a record of the votes and the proceedings of the district meetings and give certified copies thereof when required. A clerk who neglects to perform his or her duty shall forfeit $20.00 to the district, to be recovered in a civil action on this statute.
(1967, No. 318 (Adj. Sess.), § 7, eff. March 22, 1968.)
§ 3679 Finances—Sewer rates; application of revenue
(a) The board of sewer commissioners of a consolidated sewer district shall establish rates for the sewer service and all individuals, firms, and corporations whether private, public, or municipal shall pay to the treasurer of the district the rates established by the board. The manner of establishment of the rates shall be in accord with section 3616 of this title. The rates shall be so established as to provide revenue for the following purposes:
(1) to pay current expenses for operating and maintaining the sewer system;
(2) to provide for the payment of interest on the indebtedness created by the district;
(3) to provide each year a sum equal to not less than two percent nor more than five percent of the entire indebtedness created or assumed by the district to pay for the cost of the sewer system and improvements thereto, which sum shall be used to pay indebtedness maturing in that year or turned into a sinking fund and there kept to provide for the extinguishment of indebtedness of the district;
(4) if any surplus remains at the end of the year, it may be turned into the sinking fund or used to pay the cost of improvements to the sewer system.
(b) The money set aside for the sinking fund and any increment thereon shall be devoted to the retirement of obligations of the district or invested in such securities as savings banks or fiduciaries or trustees are now or hereafter allowed to hold. The balance of revenue, if any, required to meet expenses shall be apportioned among and collected from member towns as herein provided.
(c) When a rate established under this section for the management of stormwater is applied to property owned, controlled, or managed by the Agency of Transportation, the rate shall not exceed the highest rate category applicable to other properties in the municipality, and the Agency of Transportation shall receive a 35 percent credit on the rate. The Agency of Transportation shall receive no other credit on the rate from the consolidated sewer district.
(Added 1967, No. 318 (Adj. Sess.), § 8, eff. March 22, 1968; amended 2015, No. 158 (Adj. Sess.), § 31, eff. June 2, 2016; 2023, No. 143 (Adj. Sess.), § 14, eff. July 1, 2024.)
§ 3680 Annual budget, apportionment, assessment, taxes
(a) The board of sewer commissioners of the district shall at each annual meeting present to the district its budget for the ensuing year, which shall include an estimate of the revenue from sewer rates and other sources, except taxes and the expenses for the ensuing year and the district shall appropriate such sum as it deems necessary for the expenses as are not disapproved (which disapproval may not include interest on or principal of any indebtedness created or assumed by the district), together with the amount required to pay any balance left unpaid from the preceding year as will not be met from the estimated revenues, expressing the sum in dollars in its vote. At its first annual meeting the district shall likewise vote a sum sufficient to pay any unpaid balance of expense, as defined in section 3674 of this title, which has been theretofore incurred by or on behalf of the district. Immediately following the annual meeting, the board of sewer commissioners shall compute the share of each member town in the sums so voted and give notice of the amount thereof to the legislative branch of each member town.
(b) The expense of establishing, acquiring, maintaining, extending, improving, and operating a sewer system for a consolidated sewer district shall, insofar as the expense shall not be met from the proceeds of indebtedness or from sewer rates, rents or other charges received from the use of such sewer system, be divided among the member towns in accordance with a formula agreed to by the member towns by vote at an annual or special town meeting or in the absence of any such agreement as follows: two-thirds of such expense shall be divided in the proportion which the total sewage flow to the inhabitants of each member town of the district bears to the total sewage flow in all the member towns in the last preceding full calendar year of operation of the district and the balance of such expense (or all of such expense until the sewage system has been in operation for at least one full calendar year) shall be divided among the member towns in the proportion which the population of each member town according to the last rental census bears to the total population of the district.
(c) The legislative branch of each member town shall, upon receipt of the notice of the share in the district expenses to be paid by the member town, assess upon the grand list of each member town, in addition to any tax previously voted thereon, a tax sufficient to raise the member town’s share in the expenses. The additional tax as so assessed shall be collected as are other taxes of the member town and be deposited in the account of the member town. The legislative branch of the member town shall order the additional tax to be paid over to the treasurer of the district as collected by the twentieth of the month after the taxes become payable. If by the end of its fiscal year a member town has failed to collect and pay over to the treasurer of the district a sum sufficient to pay the member’s share of the expenses of the district, the legislative branch of the member town shall assess a special tax of five percent on the grand list of the member town, or a multiple thereof as is necessary to make up the unpaid balance of the share, which special tax shall be collected as are other taxes of the member town. Upon the collection of the special tax, it shall be paid over to the treasurer of the district. If by the end of its fiscal year a member town fails to pay its share of the expenses of the district, or fails to make up a deficit therein from the preceding year as provided under this chapter, the board of sewer commissioners of the district may bring a civil action on this statute in the name of the district to recover from the member town twice the amount of the share of the member town that remains unpaid, and upon judgment may levy its execution against any of the real or personal property within the member town.
(1967, No. 318 (Adj. Sess.), § 9, eff. March 22, 1968.)
§ 3681 Special tax assessment for payment of execution
When a demand is made upon the district for the payment of an execution issued against it and the district has no available funds to pay the same, the board of sewer commissioners shall compute the share of each member town in such execution, with costs, interest, and other charges, to be paid by it in accordance with the agreement among the member towns or the formula established in section 3679 of this title, and shall give notice of the amount thereof to the legislative branch of each member town. The member town through its proper officer shall forthwith pay to the treasurer of the district its share of the execution and any charges. If the member town has insufficient funds to pay its share, its legislative branch shall forthwith assess and have collected a tax sufficient to pay the same in the manner its other taxes are assessed and collected.
(1967, No. 318 (Adj. Sess.), § 10, eff. March 22, 1968.)
§ 3682 Debts and liabilities of member towns
No debt or liabilities of a town that is a member of the district shall accrue against the district.
(1967, No. 318 (Adj. Sess.), § 11, eff. March 22, 1968.)
§ 3683 Tax exemption
Property of a consolidated sewer district shall be exempt from all taxation by any town.
(1967, No. 318 (Adj. Sess.), § 12, eff. March 22, 1968.)
§ 3684 Indebtedness
(a) General obligations. A consolidated sewer district may incur indebtedness as provided by chapter 53, subchapter 1 of this title and by chapter 101 of this title for the purpose of paying the cost of a sewer system and improvements to the sewer system or for funding or refunding, including the payment of premium, any bonds or other evidences of indebtedness issued or assumed by the district. The limits on indebtedness in chapter 53 of this title or otherwise shall not apply to indebtedness incurred or assumed by a consolidated district for the purposes of this chapter.
(b) Joint and several obligations. Obligations incurred under chapter 53, subchapter 1 of this title and chapter 101 of this title by a consolidated sewer district shall be the joint and several obligations of the district and the member towns composing it. However, as among the member towns, their respective shares of the obligation shall be apportioned and paid in the manner provided in this chapter. Any joint or several liability incurred by a member town under this chapter shall not be considered in determining its debt limit for its separate purposes. Notwithstanding the limitations in sections 1755 and 1759 of this title, bonds or other evidences of indebtedness of a consolidated sewer district may be authorized by a majority of the voters present and voting on the question at a district meeting, may be paid in not more than 30 years from their date of issue, may be made callable at the option of the district with or without premium, and the serial maturities of those bonds or evidences of indebtedness may be so arranged that beginning with the first year in which principal is payable, the amount of principal and interest payable in any year shall be as nearly equal as is practicable according to the denominations in which the bonds or other evidences of indebtedness are issued.
(c) Obligations payable solely from revenue. In addition to authority granted in this section, a consolidated sewer district may issue bonds or other evidences of indebtedness under chapter 53, subchapter 2 of this title. However, no such bonds payable solely from revenues shall be issued while the district has outstanding any bonds or other evidences of indebtedness for which the district and the member towns are jointly and severally liable as provided in this chapter, except notes or other evidences of indebtedness issued temporarily in anticipation of revenue.
(Added 1967, No. 318 (Adj. Sess.), § 13, eff. March 22, 1968; amended 2019, No. 131 (Adj. Sess.), § 268.)
§ 3685 Changes in membership—Inclusion of additional towns
(a) When a majority of voters of a town, present and voting at a meeting duly warned for that purpose, shall vote to apply to a neighboring consolidated sewer district for admission as a member of the district, the vote shall thereupon be certified by the clerk of the town to the clerk of the consolidated sewer district and to the Secretary of State. Such vote and certification if accepted by the consolidated district within two years after the date of the vote shall be binding on the town without the subsequent vote in the town contemplated in subsection (b) of this section.
(b) When it appears to the board of sewer commissioners that the boundaries of the consolidated sewer district should be changed to include another town, they may insert an article fully describing the proposed change in the warning for a regular or special meeting of the district, which proposed change shall state the number of additional members to be added to the board of sewer commissioners if such change is approved.
(c) When a majority of the voters voting at such meeting vote to include an additional town within the boundaries of the consolidated sewer district as a member thereof, the board of sewer commissioners shall notify the legislative body of the additional town of the vote. Thereupon the legislative body of the additional town shall duly warn a meeting thereof, setting forth in such warning the vote of the consolidated sewer district and the proposed change in its boundaries. If a majority of the voters voting at the meeting of the additional town vote to be included within the district, the result of the vote and the result of the vote already taken by the consolidated sewer district shall be certified to the Secretary of State, who shall record the same in his or her office. A certificate of such record shall immediately be filed by the Secretary of State in the office of the clerk of the consolidated sewer district and of any additional town to be included therein as a member thereof, which filing shall be notice to all parties of the addition to the consolidated district.
(d) The consolidated sewer district as so enlarged shall thereupon have all the powers and responsibilities given it by this chapter. Any vacancy on the board of sewer commissioners created as a result of the increase in the number thereof shall be filled as provided in section 3674 of this title. The additional member town shall share in the expenses of the district in the proportion provided in this chapter for other member towns from the date the certificate of the Secretary of State is filed in the office of the clerk of the district and the office of the clerk of the additional town.
(1967, No. 318 (Adj. Sess.), § 14, eff. March 22, 1968.)
§ 3686 Withdrawal from district
(a) A town that is a member of a consolidated sewer district may vote to withdraw from the district if one year has elapsed since the district has become a body politic and corporate as provided in section 3673 of this title and if the consolidated sewer district has not voted to bond itself for construction or improvements. Any vote to withdraw before the expiration date of one year or after the district has voted bonds or other form of long term obligation shall be null and void.
(b) When a majority of the voters of a town present and voting at a town meeting duly warned for that purpose shall vote to withdraw from a consolidated sewer district, the vote shall thereupon be certified by the clerk of the town to the Secretary of State who shall thereupon record such certificate in his or her office, and the membership of the withdrawing town in the consolidated sewer district shall be at an end as of December 31 immediately following or as soon thereafter as the obligations of the withdrawing town as incurred under this chapter have been paid to the district.
(1967, No. 318 (Adj. Sess.), § 15, eff. March 22, 1968.)
§ 3687 Eligibility for State aid
A consolidated sewer district formed under this chapter shall be eligible to receive State aid as provided in 10 V.S.A. chapter 55 and under the terms, conditions, and procedures set forth in these chapters.
(1967, No. 318 (Adj. Sess.), § 16, eff. March 22, 1968; amended 1971, No. 97, § 2, eff. April 22, 1971.)
Chapter 107 Fuel and Ice Plants
§ 3701 Fuel and ice
A municipality may establish and maintain a wood, coal, and fuel yard for the purpose of selling fuel at cost to its inhabitants. It may establish and maintain an ice plant for the purpose of manufacturing, cutting, and storing ice to sell to its inhabitants at cost.
§ 3702 Ownership of property
A municipality may acquire and hold for the purposes of section 3701 of this title, real and personal estate to the extent reasonably necessary to operate, equip, and maintain the business covered by said section.
Chapter 109 Fences and Fence Viewers
§ 3801 Sufficient fences
Fences four and one-half feet high, in good repair and so constructed as to prevent the escape of sheep, and any natural barrier equivalent to such fence shall be deemed sufficient, except fences on the sides of highways that the owners of land are not bound to make and maintain. Occupied land bordering upon highways shall be deemed to be the enclosure of the owner or occupant. A person driving cattle, sheep, swine, or other stock upon a highway, and exercising reasonable care, shall not be liable for damages by reason of the escape of such animals into an enclosure adjoining the highway, unless the fence between the highway and the enclosure is a sufficient fence within the meaning of this section.
§ 3802 Maintenance
Owners or occupants of adjoining lands, where the lands of both parties are occupied, shall make and maintain equal portions of the division fence between their respective lands. The owner of unimproved and unoccupied land adjoining occupied land of another person shall make his or her proportion of a fence between such lands unless the selectboard of the town where the improved land lies, on request of either party, and on reasonable notice by the selectboard to parties interested, decides that such owner ought not to be compelled to make any part of such fence. The decision of the selectboard in such case shall be recorded in the town clerk’s office and shall be final between the parties. The selectmembers shall receive for their services the fees of fence viewers.
§ 3803 When part of land unoccupied
When the selectboard decides that the owner of the unoccupied land is not bound to make a part of the fence, the owner of the occupied land may make the whole or such part as is necessary to protect himself or herself. When the other owner occupies the adjoining land so as to be benefited by such fence, he or she shall pay to the person so making it, for his or her equal portion thereof, its value at the time.
§ 3804 Pasturing land without division fence
When the lands of two or more individuals are lying without division fence, neither party shall put horses, cattle, sheep, swine, or other animals thereon to pasture or to run at large, until they agree to occupy the lands without division fence and in common. When they cannot agree, upon application of either party and notice to the opposite party, the fence viewers shall determine the number of animals each party may put upon such lands. When recorded in the office of the town clerk, the decision of the fence viewers shall be final.
§ 3805 When fence cannot be made on line
When the dividing line between lands is so situated that a fence cannot be made thereon by reason of water or otherwise, and the owners cannot agree on a place to make the same, either party may apply to the fence viewers. After giving reasonable notice to the opposite party, such fence viewers shall determine where the fence shall be made, how much and what part each shall make and maintain, and such decision shall be final.
§ 3806 Fence viewers to locate; effect
In such case, the fence viewers shall establish the line of the fence as near the line between the lands as, in their opinion, is practicable. Each owner of the land, at the time of such division of the fence, shall ever after be deemed in possession of that portion of his or her land enclosed with that of the other owner in consequence of the division. If disagreement arises in relation to the occupancy of such lands, the same shall be determined by the fence viewers, who shall decide such matter of disagreement on the application of either party and after suitable notice is given to the opposite party.
§ 3807 Damage by straying animals
When the lands of two or more individuals are so situated that none of them are compelled to make and maintain a fence on the dividing line between their land by reason of open or unoccupied lands or highways lying between, each owner or keeper shall be liable for the damages done on the occupied lands of others by an animal straying from his or her lands and being taken on such occupied lands. Such damages may be recovered in a civil action on this statute.
§ 3808 Liability of person bound to build fence
When a person bound to support a portion of the division fence does not make or maintain his or her portion, he or she shall be liable for damages done to or suffered by the opposite party in consequence of such neglect. An owner or occupant of adjoining lands, after 10 days from the time notice is given to the opposite party, may make or put in repair the fence and recover from the opposite party damages arising from the neglect, with the expense of building or repairing the fence.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 184.)
§ 3809 Sudden destruction of fence; repairs; damages
When a division fence is suddenly damaged or destroyed by fire, winds, or floods, a person who ought to repair the same shall do so within 10 days after being thereto requested by a person interested therein, and shall pay the damages done to the opposite party by animals straying from his or her occupied lands to those of the other party during the time the fence is out of repair. If he or she does not make or repair his or her portion of the fence within 10 days after such request, the party sustaining damage thereby may make or repair the same at the expense of the person neglecting so to do, and may recover the same in a civil action on this statute.
§ 3810 Duties of fence viewers; division; penalty; appeal
On request, the fence viewers, or a majority of them, shall examine fences within the town and a division shall be made by them in cases proper for them to determine. If a fence viewer neglects to perform the duties required of him or her, he or she shall forfeit to the party aggrieved $5.00, with costs to be recovered in a civil action on this statute. Either party may appeal from the decision of the fence viewers to a Superior Court if such appeal is claimed within two hours from the rendition of the decision. Such appeal shall be taken as provided by Rule 75 of the Vermont Rules of Civil Procedure.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 3811 Notice; certificate; effect of record
When called upon to act, the fence viewers shall give notice to parties interested, or to their tenants or agents, of the time when they will examine the fence or line between adjoining lands, before they make a division relating to the same. When fence viewers make a division of fence, or appraise the value of a fence made or repaired, or examine as to the sufficiency of a fence, they shall certify the same. When they make a division of fence and so certify, a record of the same in the office of the clerk of the town in which the line is situated shall be valid against the parties, their heirs, and assigns.
§ 3812 Agreement as to division
An agreement in writing between the owners of adjoining lands, relating to their division fence, signed by the owners, witnessed by two witnesses, acknowledged by the parties and recorded in the office of the town clerk in the town where the fence is situated shall be valid against the parties, their heirs, and assigns.
§ 3813 When fence is on a town line; division
When the line on which a division fence is to be made or maintained is the line between two towns, and the parties do not agree upon the division, the same shall be determined by a board of fence viewers consisting of one or more from each of the towns. Such board of fence viewers shall give notice to the parties, make the division, and make a certificate as provided in section 3811 of this title. Such certificate shall be valid against the parties, their heirs, and assigns, if recorded in the office of the town clerk in each of the towns.
§ 3814 Homesteader to maintain; liability
Each owner of a homestead shall be liable to make and maintain his or her portion of the division fence between his or her homestead and adjoining lands. The homestead shall be liable to attachment and levy of execution for damages and costs recovered for neglect so to do.
§ 3815 Records
Certificates and written agreements mentioned in this chapter shall be recorded and alphabetically indexed by the town clerk in a book kept for that purpose.
§ 3816 Recovery for expense
When, by the provisions of this chapter, owners of adjoining lands are required to pay to another the expense of making or repairing a division fence, or damages for the neglect of making, or for one-half the value of a division fence, the same with costs may be recovered in a civil action on such statute.
§ 3817 Unnecessary fence; maintenance prohibited; penalty
A person shall not erect or maintain an unnecessary fence or other structure for the purpose of annoying the owners of adjoining property by obstructing their view or depriving them of light or air. A person who violates a provision of this section shall be fined not more than $100.00.
Chapter 111 Monuments, Observances, Service Records, Histories
§ 3901 Soldiers’ monuments and records
A town may instruct the selectboard to erect a building or monument to the memory of citizens of such town who were in the military or naval service during any wars in which the United States has been engaged and may appropriate sufficient money for that purpose, and may issue its notes or bonds extending over a period that shall not exceed five years to cover the expense of the same. Such town may also instruct the selectboard to have inscribed upon such monument or upon or within such buildings the names of such persons credited to such town by the State, or federal authorities, who entered the service of the United States during such wars and died while in such service or were honorably discharged.
§ 3902 Rooms for use of veterans’ organizations
A town may appropriate the necessary funds to pay the rentals of rooms for the use of organizations of veterans of wars of the United States.
§ 3903 Military records
A town may appoint a person, who need not be a resident of the town, to prepare a military record at the expense of the town, which shall contain the name of every person in the U.S. Armed Forces furnished by the town during any wars or military enterprises in which the United States has been engaged with the following statistics, so far as applicable to each case: age at the time of enlistment or induction; birthplace; date of enlistment; date of muster into the service of the United States; rank; promotions; reenlistment; date and cause of discharge; date of pension and amount; date and cause of death; date, place, and nature of wounds; bounty received from the town and bounty received from individuals; and any other pertinent information.
(Amended 2019, No. 131 (Adj. Sess.), § 269.)
§ 3904 Printing and sale of records
A town may order such records printed and kept for sale at a price not to exceed an advance of 20 percent of the cost of publication.
§ 3905 Certified copy for town clerk’s office
A copy officially certified by the compiler of the record shall be kept in the office of the town clerk.
(Amended 2021, No. 53, § 7.)
§ 3906 Town histories
At its annual meeting, a town may authorize the selectboard to contract with some person to prepare and publish the history of the town, under such regulations as it prescribes.
§ 3907 Memorial Day and other historic events
A municipality may appropriate such sums of money as it deems necessary for the proper observance of Memorial Day, for the celebration of historic events, and for the erection and dedication of monuments or tablets to commemorate the same.
Chapter 113 Housing Authorities
§ 4000 Statutory purposes
The statutory purpose of the exemption for housing authorities in section 4020 of this title is to promote, provide, and preserve affordable housing.
(Added 2013, No. 200 (Adj. Sess.), § 13.)
§ 4001 Declaration of policy
It is hereby declared:
(1) That there exists in the State unsanitary or unsafe dwelling accommodations and that persons of low income are forced to reside in such unsanitary or unsafe accommodations; that within the State there is a shortage of safe or sanitary dwelling accommodations available at rents that persons of low income can afford and that such persons are forced to occupy overcrowded and congested dwelling accommodations; that the aforesaid conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the residents of the State of Vermont and impair economic value; that these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities.
(2) That these slum areas cannot be cleared, nor can the shortage of safe and sanitary dwellings for persons of low income be relieved through the operation of private enterprise and that the construction of housing projects for persons of low income, as defined in section 4002 of this chapter, would therefore not be competitive with the private enterprise.
(3) That the clearance, replanning, and reconstruction of the areas in which unsanitary or unsafe housing conditions exist and the providing of safe and sanitary dwelling accommodations for persons of low income are public uses and purposes for which public money may be spent and private property acquired.
(4) That substandard and decadent areas exist in certain portions of the State of Vermont and that there is not, in certain parts of the State, an adequate supply of decent, safe, and sanitary housing for persons of low income or elders of low income, or both available for rents that the persons can afford to pay, and the rents that the persons can afford to pay would not warrant private enterprise in providing housing for the persons; that this situation tends to cause an increase and spread of communicable and chronic disease; that the lack of properly constructed dwelling units designed specifically to meet the needs of elders aggravate those diseases peculiar to elders, thereby crowding the hospitals of the State with elders under conditions of neglect that inevitably exacerbate mental deterioration; that this situation constitutes a menace to the health, safety, welfare, and comfort of the inhabitants of the State and is detrimental to property values in the localities in which it exists; that this situation cannot readily be remedied by the private enterprise and that a public exigency exists that makes the provision of housing for elders of low income and the clearance of substandard and decadent areas a public necessity; that the provision of housing for elders of low income for the purpose of reducing the cost to the State of their care by promoting their health and welfare, thereby prolonging their productivity in the interest of the State and nation and the clearance of substandard and decadent areas is declared to be a public use for which private property may be taken by eminent domain and public funds raised by taxation may be expended, and the necessity in the public interest for provisions hereinafter enacted, is hereby declared as a matter of legislative determination.
(Added 1961, No. 212, § 2, eff. July 11, 1961; amended 2013, No. 96 (Adj. Sess.), § 156.)
§ 4002 Definitions
The following terms, wherever used or referred to in this chapter, shall have the following respective meanings, unless a different meaning clearly appears from the context:
(1) “Authority” or “housing authority” shall mean any of the public corporations created by section 4003 of this title, and the Vermont State Housing Authority created by section 4005 of this title.
(2) “Municipality” shall mean a town, a village, or a city. “The municipality” means the particular municipality or municipalities for which a particular housing authority is created.
(3) “State public body” shall mean any city, town, county, municipality, commission, district, authority, or other subdivision or other public body of the State.
(4) “Governing body” shall mean the selectboard of a town, the trustees of a village, or the mayor and the board of aldermen of a city. Where a housing authority for two or more municipalities is established pursuant to section 4027 of this title, the “governing body” shall mean the selectboard of each town, the trustees of each village, and the mayor and board of aldermen of each city included in such authority.
(5) “Mayor” shall mean the mayor of the city or the officer thereof charged with the duties customarily imposed on the mayor or executive head of the city.
(6) “Clerk” shall mean the clerk of the city or the clerk of the town, as the case may be, or the officer charged with the duties customarily imposed on the clerk.
(7) “Area of operation,” in the case of a housing authority for a municipality, shall include the municipality and, in the case of a city, the area within six miles of the territorial boundaries thereof but not any area that lies within the territorial boundaries of any other municipality for which another housing authority is created by this chapter. In the case of a housing authority duly constituted by, and for the purpose of serving, two or more municipalities, the area of operation shall include the area within each such municipality. The area of operation of the Vermont State Housing Authority is the entire State, except in those areas where there is an existing housing authority with a workable program. In those areas where a housing authority exists, the Vermont State Housing Authority may enter with permission of the governing body of the municipality.
(8) “Federal government” shall include the United States of America, the federal Public Works Administration, or any other agency or instrumentality corporate or otherwise of the United States of America.
(9) “Slum” shall mean any area where dwellings predominate that, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light, or sanitary facilities, or any combination of these factors, are detrimental to safety, health, and morals.
(10) “Housing project” shall mean any work or undertaking:
(A) to demolish, clear, or remove buildings from any slum area; the work or undertaking may embrace the adaptation of the area to public purposes and including parks or other recreational or community purposes;
(B) to provide decent, safe, and sanitary urban or rural dwellings, apartments, or other living accommodations for persons of low income and accommodations for elders who are of low income, the work or undertaking may include buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare, or other purposes; or
(C) to accomplish a combination of the foregoing. The term “housing project” also may be applied to the planning of buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration, and repair of improvements, and all other work in connection therewith.
(11) “Persons of low income” shall mean persons or families, elders or otherwise, who lack the amount of income that is necessary, as determined by the authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings without overcrowding. The term “elder” shall mean a person who has attained retirement age as defined in Section 216(a) of the federal Social Security Act or is under a disability as defined in Section 223 of that act.
(12) “Bonds” shall mean any bonds, notes, interim certificates, debentures, or other obligations issued by the authority pursuant to this chapter.
(13) “Real property” shall include all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest, and right, legal or equitable therein, including terms for years and liens by way of judgment, mortgage, or otherwise and the indebtedness secured by such liens.
(14) “Obligee of the authority” or “obligee” shall include any bond holder, trustee or trustees for any bond holders, or lessor demising to the authority property used in connection with a housing project, or any assignee or assignees of such lessor’s interest or any part thereof and the federal government when it is a party to any contract with the authority.
(Added 1961, No. 212, § 3, eff. July 11, 1961; amended 1967, No. 332 (Adj. Sess.), § 1, eff. March 23, 1968; 1973, No. 44; 1977, No. 27, § 1; 2013, No. 96 (Adj. Sess.), § 157.)
§ 4003 Housing authority; establishment
(a) In each municipality there is hereby created a public body corporate and politic to be known as the housing authority; provided, however, that such authority shall not transact any business or exercise its power under this chapter, until or unless the governing body of the municipality by proper resolution shall declare that there is a need for the authority to function in the municipality.
(b) The governing body shall adopt a resolution declaring that there is a need for a housing authority in the municipality, if it shall find:
(1) that unsanitary or unsafe inhabited dwelling accommodations exist in the municipality; or
(2) that there is a shortage of safe or sanitary dwelling accommodations in the municipality available to persons of low income or elders of a low income, or both, at rentals they can afford. In determining whether accommodations are unsafe or unsanitary, the governing body may take into consideration the degree of overcrowding, the percentage of land coverage, the light, air, space, and access available to the inhabitants of the accommodations, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions exist in the buildings that endanger life or property by fire or other causes.
(Added 1961, No. 212, § 4, eff. July 11, 1961; amended 2013, No. 96 (Adj. Sess.), § 158; 2017, No. 113 (Adj. Sess.), § 158.)
§ 4004 Housing authority, members, powers
(a) When the governing body of a municipality, other than a town, adopts a resolution pursuant to section 4003 of this chapter, it shall promptly notify the mayor of such adoption. Upon receiving such notice, the mayor shall appoint five persons as commissioners of the authority created for said municipality. When the governing body of the town adopts a resolution, said body shall appoint five persons as commissioners of the authority created for said town. The commissioners who are first appointed shall be designated to serve for terms of one, two, three, four, and five years respectively, from the date of their appointment, but thereafter commissioners shall be appointed for a term of office of five years except that all vacancies shall be filled for the unexpired term. No commissioner of any authority may be an officer or an employee of the municipality for which the authority is created. A commissioner shall hold office until his or her successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner. A commissioner shall receive no compensation for his or her services, but he or she shall be entitled to the necessary expenses, including travelling expenses, incurred in the discharge of his or her duties.
(b) The powers of each authority shall be vested in the commissioners thereof in office from time to time. Three commissioners shall constitute a quorum of authority for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the authority upon a vote of the majority of the commissioners present, unless in any case the bylaws of the authority should require a larger number. The mayor, or in the case of an authority for a town, the governing body of such town, shall designate which of the commissioners appointed shall be the first chair, but when the office of the chair of the authority thereafter becomes vacant, the authority shall select a chair from among its commissioners. An authority shall select from among its commissioners a vice chair and it may employ a secretary (who shall be executive director), technical experts and such other officers, agents and employees, permanent and temporary, as it may require and shall determine their qualifications, duties and compensation. For such legal services as it may require, an authority may call upon the chief law officer of the municipality or may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper.
(Added 1961, No. 212, § 5, eff. July 11, 1961.)
§ 4005 Vermont State Housing Authority; establishment, members, powers
(a) The Vermont State Housing Authority is created. It is referred to in this chapter as the “State Authority.” It is a public body corporate and politic of perpetual duration and shall consist of seven commissioners.
(b) The Governor, with the advice and consent of the Senate, shall appoint the commissioners for terms of five years. At the time of appointment or reappointment, one of the commissioners so appointed shall be a tenant residing in publicly subsidized housing within the State. 3 V.S.A. chapter 11 applies to all the commissioners. A certificate of the appointment or reappointment of any commissioner shall be filed with the Secretary of State and that certificate shall be conclusive evidence of the due and proper appointment of that commissioner. All commissioners are entitled to the necessary expenses, including traveling expenses, incurred in the discharge of their duties. All commissioners shall be entitled to receive a per diem of $30.00 except a commissioner who is a State or municipal employee; provided that a commissioner who is a municipal employee shall be entitled to the per diem when the commissioner’s:
(1) compensation from the municipality is reduced as a result of the performance of his or her official duties; or
(2) official duties are performed on his or her personal time.
(c) The powers of the State Authority are vested in the commissioners thereof in office from time to time. Four commissioners shall constitute a quorum of the State Authority for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the State Authority upon a vote of the majority of the commissioners present and voting. The State Authority shall select annually from among its commissioners a chair and a vice chair. It may employ a secretary (who shall be executive director), technical experts, and such other officers, agents, and employees, permanent and temporary, as it may require and shall determine their qualifications, duties, and compensation. For such legal services as it may require, the State Authority may call upon the Attorney General or may employ its own counsel and legal staff. The State Authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper.
(d) The State Authority is created for the purpose of improving housing conditions and facilities through federal resources and assistance in the field of low-rent housing and private accommodations. Except as provided in subdivision 4008(10) of this title, the State Housing Authority shall be the public housing agency with statewide responsibility eligible to administer allocations of money under 42 U.S.C.A. § 1437f. These allocations shall be subject to the approval of the Vermont Housing Finance Agency. There shall be no commitment of funds by the State of Vermont under or by virtue of any provisions of this chapter.
(e) Notwithstanding any provision of law, no person shall be authorized to administer allocations of money under 42 U.S.C.A. § 1437a or 1437f or other federal statute authorizing rental subsidies for the benefit of persons of low or moderate income, except:
(1) the State Authority;
(2) a State public body authorized by law to administer such allocations;
(3) a person authorized to administer such allocations pursuant to an agreement with the State Authority; or
(4) an organization, of which the State Authority is a promoter, member, associate, owner, or manager, that is authorized by a federal agency to administer such allocations in this State.
(f) In addition to the powers granted by this chapter, the State Authority shall have all the powers necessary or convenient for the administration of federal monies pursuant to subsection (e) of this section, including the power:
(1) to enter into one or more agreements for the administration of federal monies;
(2) to be a promoter, partner, member, associate, owner, or manager of any partnership, limited liability company, joint venture, association, trust, or other organization;
(3) to conduct its activities, locate offices, and exercise the powers granted by this title within or outside this State;
(4) to carry on a business in the furtherance of its purposes; and
(5) to do all things necessary or convenient, consistent with law, to further the activities and affairs of the Authority.
(Added 1967, No. 332 (Adj. Sess.), § 2, eff. March 23, 1968; amended 1975, No. 176 (Adj. Sess.), § 7, eff. March 26, 1976; 1981, No. 225 (Adj. Sess.), §§ 1, 2; 1985, No. 3; 2011, No. 137 (Adj. Sess.), § 9, eff. May 14, 2012; 2013, No. 161 (Adj. Sess.), § 72; 2017, No. 69, § H.11, eff. June 8, 2017; 2017, No. 113 (Adj. Sess.), § 159.)
§ 4006 Disqualification
(a) During his or her tenure, no commissioner or employee of an authority shall acquire any direct or indirect ownership interest in any housing project or in any property included or planned to be included in any project, nor shall he or she acquire any direct or indirect interest in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project, except that the renewal of an existing contract shall be subject to the provisions of subsection (b) of this section.
(b) If any commissioner or employee of an authority, prior to appointment or employment, owns or has a direct or indirect interest in any housing project or any property included or planned to be included in any housing project, or a direct or indirect interest in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project, he or she immediately shall disclose the same in writing to the authority and such disclosure shall be entered upon the minutes of the authority. He or she shall not vote on any issue pertaining to any housing project, or any property included or planned to be included in any project or on any contract or proposed contract for materials or services to be furnished or used in connection with any housing project for which he or she owns or controls a direct or indirect interest. Failure so to disclose such interest or refrain from voting shall constitute misconduct in office.
(1961, No. 212, § 6, eff. July 11, 1961; amended 1987, No. 250 (Adj. Sess.), § 5, eff. June 13, 1988.)
§ 4007 Removal
For inefficiency or neglect of duty or misconduct in office, a commissioner of an authority may be removed by the mayor (or in the case of an authority of a town, by the governing body of said town) or in the case of the State Authority, by the Governor, but a commissioner shall be removed only after he or she shall have been given a copy of the charges at least ten days prior to the hearing thereon and had an opportunity to be heard in person or by counsel. In the event of the removal of any commissioner, a record of the proceedings, together with the charges and findings thereon, shall be filed in the office of the clerk, or in the case of the State Authority, in the office of the Secretary of State.
(Added 1961, No. 212, § 7, eff. July 11, 1961; amended 1967, No. 332 (Adj. Sess.), § 3, eff. March 23, 1968.)
§ 4008 Powers
An authority shall constitute a public body, corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to those herein granted:
(1) To sue and be sued; to have a seal and to alter it at pleasure; to have perpetual succession; to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; and to make and from time to time amend and repeal bylaws, rules, and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority.
(2) Within its area of operations, to prepare, carry out, acquire, lease, and operate housing projects; to provide for the construction, reconstruction, improvement, alteration, or repair of any housing project or any part thereof.
(3) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; and (notwithstanding anything to the contrary, contained in this chapter, or in any other provisions of law) to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor and comply with any conditions which the federal government may have attached to its financial aid to the project.
(4) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures, or facilities embraced in any housing project and (subject to the limitations contained in this chapter) to establish and revise the rents or charges therefore; to own, hold, and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein; to insure or provide for the insurance of any real or personal property or operation of the authority against any risk or hazards; to procure insurance or guarantees from the federal government of the payment of any debts or part thereof (whether or not incurred by said authority) secured by mortgages on any property included in any of its housing projects.
(5) To invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its bond at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be cancelled.
(6) Within its area of operation: to investigate into living, dwelling, and housing conditions and into the means and methods of improving the conditions; to determine where slum areas exist or where there is a shortage of decent, safe, and sanitary dwelling accommodations for persons of low income as well as elders who are of low income; to make studies and recommendations relating to the problem of clearing, replanning, and reconstructing of slum areas and to cooperate with all urban renewal agencies on the problem of providing dwelling accommodations for persons of low income and to cooperate with the municipality, the State, or any political subdivision thereof in action taken in connection with such problem and to engage in research, studies, and experimentation of the subject of housing.
(7) To exercise all or any part or combination of the powers granted in this section.
(8) To provide an adequate number of dwelling units, especially designed for occupation by elders when a survey by the authority indicates a need therefor. Elders shall have priority in the rental of such units.
(9) No law with respect to the acquisition, operation, or disposition of property by other public bodies shall be applicable to an authority unless the Legislature shall specifically so state.
(10) To administer, at its option, allocations of money made under 42 U.S.C.A. § 1437f.
(Added 1961, No. 212, § 8, eff. July 11, 1961; amended 1975, No. 176 (Adj. Sess.), § 8, eff. March 26, 1976; 2013, No. 96 (Adj. Sess.), § 159.)
§ 4009 Rentals
It is hereby declared to be the policy of this State that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with providing decent, safe, and sanitary dwelling accommodations and that no housing authority shall construct or operate any such project for profit, or as a source of revenue to the State or municipality. To this end an authority shall fix the rental for dwellings in its projects at no higher rate than it shall find to be necessary in order to produce revenue which, together with all other available moneys, revenues, income and receipts of the authority from whatever source derived, will be sufficient:
(1) to pay as the same become due, the principal and interest on the bond of the authority;
(2) to meet the cost of and to provide for maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of the authority; and
(3) to create, during not less than six years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments that will be due on such bonds in any one year thereafter and to maintain such reserve.
(1961, No. 212, § 9, eff. July 11, 1961; amended 1967, No. 332 (Adj. Sess.), § 4, eff. March 23, 1968.)
§ 4010 Duties
(a) In the operation of or management of housing projects an authority shall at all times observe the following duties with respect to rentals and tenant selection:
(1) It may rent or lease the dwelling accommodations therein only to persons of low income or elders who are of low income, or both.
(2) It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of such persons as indicated of low income.
(3) It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms (but no greater number) that it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding.
(4) It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an annual net income in excess of five times the annual rental of the quarters to be furnished such person or persons, except that in the case of families of three or more minor dependents, such ratio shall not exceed six to one; in computing the rental for this purpose of selecting tenants, there shall be included in the rental the average annual cost (as determined by the authority) to the occupants, of heat, water, electricity, gas, cooking range, and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.
(5) It shall prohibit subletting by tenants.
(6) When renting or leasing accessible dwelling accommodations, it shall give priority to tenants with a disability. As used in this subdivision, “accessible” means a dwelling that complies with the requirements for an accessible unit set forth in section 1102 of the 2017 ICC Standard for Accessible and Useable Buildings and Facilities or a similar standard adopted by the Access Board by rule pursuant to 20 V.S.A. § 2901.
(b) Nothing contained in this section or section 4009 of this chapter shall be construed as limiting the power of an authority to vest in an obligee the right, in the event of a default by an authority, to take possession of a housing project or cause the appointment of a receiver thereof, or acquire title thereto through foreclosure proceedings, free from all the restrictions imposed by this section or section 4009 of this chapter.
(c) The director of any housing authority may obtain from the Vermont Crime Information Center the record of convictions of any person applying for residence in any housing project administered by the housing authority.
(Added 1961, No. 212, § 10, eff. July 11, 1961; amended 1995, No. 51, § 3; 2013, No. 96 (Adj. Sess.), § 160; 2023, No. 181 (Adj. Sess.), § 92, eff. June 17, 2024.)
§ 4011 Joint action
Any two or more authorities may join or cooperate with one another in the exercise of any or all of the powers conferred by this chapter for the purpose of financing, planning, undertaking, constructing, or operating a housing project or projects located within the area of operation of any one or more of said authorities.
(1961, No. 212, § 11, eff. July 11, 1961.)
§ 4012 Eminent domain; exemption of property from execution
(a) An authority shall have the right to acquire by the exercise of the power of eminent domain any real property that it may deem necessary for its purposes under this chapter after the adoption by it of a resolution declaring that the acquisition of the real property described therein is necessary for such purposes. An authority may exercise the power of eminent domain in the manner provided for the condemnation of land or rights therein as set forth in 19 V.S.A. §§ 500-514 and 519 and acts amendatory thereof or supplementary thereto. Property already devoted to a public use may be acquired, provided that no real property belonging to the city, county, State, or any political subdivision thereof may be acquired without its consent.
(b) Where it appears to the satisfaction of the court at any stage of the proceedings, upon the petition of the authority that the public interest will be prejudiced by delay, the court may, after such notice to the parties in interest as it may prescribe, which notice, however, shall not be less than eight days and may be by posting upon the property or by publication in such paper or papers at such time as the court may require, order that the authority be permitted to enter immediately upon the real property described in the petition, or any part thereof and to demolish any structures located thereon and to proceed with the construction of the project thereon, upon depositing with the court a sum of money or in lieu thereof, bonds or obligations of the United States of equivalent or greater value, not less than the last assessed valuation of the property, that the court shall find to be sufficient for the protection of the persons who may be entitled to the award. Such deposit or proceeds thereof shall be applied so far as it may be necessary for that purpose, to the payment of any award that may be made, with interest thereon, costs and expenses and the residue, if any, shall be returned to the authority; in the event of a deficiency in the sum deposited, the authority shall pay the balance to make up the award in accordance with the judgment.
(c) All real property of any housing authority, created pursuant to the provisions of this chapter, shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall any judgment against such authority be a charge or lien upon its real property; provided however, that the provisions of this section shall not apply to or limit the right of obligees to foreclose or otherwise enforce any mortgage of such an authority or the right of obligees to pursue any remedy for the enforcement of any pledge or liens given by such an authority on its rents, fees, or revenues.
(Added 1961, No. 212, § 12, eff. July 11, 1961; amended 2011, No. 126 (Adj. Sess.), § 7.)
§ 4013 Zoning
All housing projects of an authority shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which the housing project is situated. In the planning and location of any housing project, an authority shall take into consideration the relationship of the project to any larger plan or long range program for the development of the area in which the housing authority functions.
(1961, No. 212, § 13, eff. July 11, 1961.)
§ 4014 Bonds, issuance of
(a) An authority shall have power to issue bonds from time to time in its discretion, for any of its corporate purposes. An authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds issued previously by it.
(b) Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations of an authority, and such bonds and obligations shall so state on their face, shall not be a debt of the municipality, the State, or any political subdivision thereof and neither the municipality, nor the State or any political subdivision thereof shall be liable thereon. Nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of said authority. Bonds shall not constitute an indebtedness within the meaning of any debt limitation or any restriction. Bonds of an authority are declared to be issued for an essential public and governmental purpose and to be public instrumentalities and together with interest thereon and income therefrom, shall be exempt from taxes.
(1961, No. 212, § 14, eff. July 11, 1961.)
§ 4015 Bonds authorized; conversion privileges
(a) Bonds of an authority shall be authorized by its resolution and may be issued in one or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, 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, with or without premium as such resolution, its trust indenture, or mortgage may provide.
(b) The bonds may be sold at not less than par at public sale held after notice published once at least five days prior to such sale in a newspaper having a general circulation in the municipality and in a financial newspaper published in the city of Boston, Massachusetts or in the city of New York, New York, except that in the case of bonds of the State Authority, such notice shall be published only in a financial newspaper as described in this subsection. All bonds may be sold at not less than par to the federal government at private sale without any public advertisement.
(c) In case any of the commissioners or officers of the authority whose signatures appear on the bonds or coupons shall cease to be such commissioners or officers before the delivery of such bonds such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if they had remained in office until such delivery. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.
(d) In any suit, action, or proceedings involving the validity or enforceability of any bond of an authority or the security thereof, any such bond reciting in substance that it has been issued by the authority to aid in financing a housing project to provide dwelling accommodations for persons of low income shall be conclusively deemed to have been issued for a housing project of such character and said project shall be conclusively deemed to be planned, located, and constructed in accordance with the provisions and purposes of this chapter.
(1961, No. 212, § 15, eff. July 11, 1961; amended 1967, No. 332 (Adj. Sess.), § 5, eff. March 23, 1968; 1969, No. 285 (Adj. Sess.), § 11, eff. April 9, 1970.)
§ 4016 Bonds, powers, covenants
In connection with the issuance of bonds, or the incurring of obligations under leases and in order to secure the payment of such bonds or obligations, an authority, in addition to its other powers, shall have power:
(1) To pledge all or any part of its gross or net rents, fees or revenues to which its right then exists, or may thereafter come into existence.
(2) To mortgage all or any part of its real or personal property, then owned or thereafter acquired.
(3) To covenant against pledging all or any part of its rents, fees and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence or against permitting or suffering any lien on such revenues or properties; to covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or part thereof and to covenant as to what other or additional debts or obligations may be incurred by it.
(4) To covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise and as to the use and disposition of the proceeds thereof; to provide for the replacement of lost, destroyed, or mutilated bonds; to covenant against extending the time for the payment of its bonds or interest thereon and to redeem the bonds and to covenant for their redemption and to provide the terms and conditions thereof.
(5) To covenant, subject to the limitations contained in this chapter, as to the rents and fees to be charged in the operation of the housing project or projects, the amount to be raised each year or other period of time by rents, fees, and other revenues and as to the use and disposition to be made thereof; to create or to authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserve, or other purposes and to covenant as to the use and disposition of the moneys held in such funds.
(6) To prescribe the procedure, if any, by which the terms of any contract with bond holders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given.
(7) To covenant as to the use of any or all of its real or personal property; to covenant as to the maintenance of its real and personal property; the replacement thereof, the insurance to be carried thereon and the use and disposition of its insurance monies.
(8) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and to covenant and prescribe as to the events of default and terms and conditions upon which any or all of the bonds or obligations shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.
(9) To vest in a trustee or trustees or the holders of the bonds or any proportion of them the right to enforce the payment of the bonds, or any covenants securing or relating to the bonds; to vest in a trustee or trustees the right, in the event of a default by said authority, to take possession and use, to operate and manage any housing project or part thereof, and to collect the rents and revenues arising therefrom and to dispose of such monies in accordance with the agreement of the authority with said trustee; to provide for the powers and duties of a trustee or trustees and to limit the liability thereof; and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any covenant or right securing or relating to the bond.
(10) To exercise all or part or a combination of powers granted in this section; to make covenants other than and in addition to the covenants herein expressly authorized, of like or different character; to make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or, in the absolute discretion of said authority as will tend to make the bonds more marketable notwithstanding that such covenants, acts, or things are not enumerated in this section.
(1961, No. 212, § 16, eff. July 11, 1961.)
§ 4017 Rights of obligees
An obligee of an authority shall have the right in addition to all other rights which may be conferred upon such obligee, subject only to any contractual restrictions binding upon such obligee:
(1) By suit, action, or proceeding to compel said authority and the commissioners, officers, agents, or employees thereof to perform each and every term, provision, and covenant contained in any contract of said authority with or for the benefit of such obligee and to require the carrying out of any or all such covenants or agreements of said authority and the fulfillment of all duties imposed upon said authority by this chapter.
(2) By suit, action, or proceeding, to enjoin any acts or things that may be unlawful, or the violation of any of the rights of any obligee of said authority.
(1961, No. 212, § 17, eff. July 11, 1961.)
§ 4018 Powers may be conferred on obligee
An authority shall have power by its resolution, trust indenture, mortgage, lease, or other contract to confer upon any obligee holding or representing a specified amount in bonds, or holding a lease, the right, in addition to all rights that may be otherwise conferred, upon the happening of an event of default as defined in such resolution or instrument, by suit, action, or proceeding in any court of competent jurisdiction:
(1) To cause possession of any housing project or any part thereof to be surrendered to any such obligee.
(2) To obtain the appointment of a receiver of any housing project of said authority or any part thereof and of the rents and profits therefrom. If such receiver be appointed, he or she may enter and take possession of such housing project or any part thereof and operate and maintain the same and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom and shall keep such monies in a separate account or accounts and apply the same in accordance with the obligations of said authority as the court shall direct.
(3) To require said authority and the commissioners thereof to account as if it and they were the trustees of an express trust.
(1961, No. 212, § 18, eff. July 11, 1961.)
§ 4019 United States cooperation
In addition to the powers conferred upon an authority by other provisions of this chapter, an authority is empowered to borrow money or accept grants or other financial assistance from the federal government for, or in aid of, any housing project within its area of operation, to take over or lease or manage any housing project or undertaking constructed or owned by the federal government and to these ends to comply with such conditions and enter into such mortgages, trust indentures, leases, or agreements as may be necessary, convenient, or desirable. It is the purpose and intent of this chapter to authorize every authority to do any and all things necessary or desirable to secure the financial aid or the cooperation of the federal government in the undertaking, construction, maintenance, or operation of any housing project by such authority.
(1961, No. 212, § 19, eff. July 11, 1961.)
§ 4020 Taxation
The property of an authority is declared to be public property used for essential public and governmental purposes and such property and an authority shall be exempt from all taxes and special assessments of the State or any State public body thereof; provided however, that in lieu of such taxes or special assessments, the authority may agree to make payments to the State public body for improvements, services, and facilities furnished by such State public body for the benefit of the housing project, but in no event shall the payments exceed the estimated cost to such State public body of the improvements, services, or facilities to be so furnished.
(1961, No. 212, § 20, eff. July 11, 1961.)
§ 4021 Governmental services and contracts
In connection with any housing project located within the area in which it is authorized to act, any State public body may contract with the housing authority with respect to the sum or sums, if any, which the housing authority may agree to pay, during any year or period of years, to the State public body for the improvements, services, and facilities to be furnished by it, for the benefit of said housing project, but in no event shall the amount of such payments exceed the estimated cost to the State public body of the improvements, services, or facilities to be so furnished: provided however, that the absence of a contract for such payments shall in no way relieve any State public body from the duty to furnish, for the benefit of said housing project, customary improvements and such services and facilities as such State public body furnishes customarily without a service fee.
(1961, No. 212, § 21, eff. July 11, 1961.)
§ 4022 Powers
For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of housing projects, located within the area in which it is authorized to act, any State public body may upon such terms, with or without consideration, as it may determine:
(1) dedicate, sell, convey, or lease any of its interest in any property or grant easements, licenses, or any other rights or privileges therein, to a housing authority or the federal government;
(2) cause parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake, to be furnished adjacent to or in connection with housing projects;
(3) furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other places which it is otherwise empowered to undertake;
(4) plan or replan, zone or rezone, any part of such State public body; make exceptions from building regulations and ordinances; any city may also change its map;
(5) cause services to be furnished to the housing authority of the character which such State public body is otherwise empowered to furnish;
(6) enter into agreements with respect to the exercise by such State public body of its powers relating to the repair, closing, or demolition of unsafe, unsanitary, or unfit dwellings;
(7) employ, notwithstanding the provisions of any other law, any funds belonging to or within the control of such State public body, including funds derived from the sale of furnishings or property or facilities to a housing authority, in the purchase of the bonds or other obligations of the housing authority; and exercise all rights of any holder of such bonds or other obligations;
(8) enter into agreements, which may extend over any period, notwithstanding any provision or rule of law to the contrary, with a housing authority or the federal government respecting the exercise by such State public body of any of the powers herein granted;
(9) do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction, or operation of such housing projects; and
(10) in connection with any public improvements made by a State public body exercising the powers herein granted, such State public body may incur the entire expense thereof.
(1961, No. 212, § 22, eff. July 11, 1961.)
§ 4023 Appropriation
When any housing authority which is created for any municipality becomes authorized to transact business and exercise its powers therein, the governing body of such municipality shall immediately make an estimate of the amount of money necessary for the administrative expenses and overhead of such housing authority during the first year thereafter and shall appropriate such amount to the authority out of any monies in the treasury of such municipality not appropriated to some other purpose. The money so appropriated shall be paid to the authority as a donation. Any municipality located within the area of operation of a housing authority shall have the power from time to time to lend or donate money to the authority. The housing authority, when it has money available therefore, shall make reimbursement for all loans made to it.
(1961, No. 212, § 23, eff. July 11, 1961.)
§ 4024 Exercise of authority
The exercise by a State public body of the powers granted in this chapter may be authorized by resolution of the governing body of such State public body adopted by a majority of the members thereof present at a meeting of said governing body. Such resolution or resolutions shall take effect immediately upon passage and need not thereafter be laid over or published or posted.
(1961, No. 212, § 24, eff. July 11, 1961.)
§ 4025 Report
At least once a year, an authority shall file with the clerk a report of its activities for the preceding year and shall make recommendations with reference to such additional legislation or other actions as it deems necessary in order to carry out the purpose of this chapter.
(Amended 1961, No. 212, § 25, eff. July 11, 1961; 1967, No. 332 (Adj. Sess.), § 6, eff. March 23, 1968; 2011, No. 139 (Adj. Sess.), § 20, eff. May 14, 2012.)
§ 4026 Inconsistent acts
As far as the provisions of this chapter are inconsistent with any other law, including special act or municipal charter, this chapter shall control.
(Added 1966, No. 69 (Sp. Sess.), § 11, eff. March 14, 1966.)
§ 4027 Joint municipal housing authorities
The governing bodies of two or more municipalities may, pursuant to and in the manner set forth in section 4003 of this title, adopt a resolution to establish a housing authority for such municipalities. When the governing bodies of two or more towns adopt such a resolution, they shall also appoint, in the manner set forth in section 4004 of this title, five persons as the commissioners of the authority established. A housing authority established pursuant to this section shall have the same powers and responsibilities as a housing authority established for a single municipality.
(Added 1977, No. 27, § 2.)
Chapter 115 Municipal Compacts for Joint Operations
§§ 4101-4109 Repealed
[Repealed]
1969, No. 197 (Adj. Sess.), § 2.
Chapter 117 Municipal and Regional Planning and Development
Subchapter 1 General Provisions; Definitions
§ 4301 Short title
This chapter may be referred to as the Vermont Planning and Development Act.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 4302 Purpose; goals
(a) General purposes. It is the intent and purpose of this chapter to encourage the appropriate development of all lands in this State by the action of its constituent municipalities and regions, with the aid and assistance of the State, in a manner which will promote the public health, safety against fire, floods, explosions, and other dangers; to promote prosperity, comfort, access to adequate light and air, convenience, efficiency, economy, and general welfare; to enable the mitigation of the burden of property taxes on agricultural, forest, and other open lands; to encourage appropriate architectural design; to encourage the development of renewable resources; to protect residential, agricultural, and other areas from undue concentrations of population and overcrowding of land and buildings, from traffic congestion, from inadequate parking and the invasion of through traffic, and from the loss of peace, quiet, and privacy; to facilitate the growth of villages, towns, and cities and of their communities and neighborhoods so as to create an optimum environment, with good civic design; to encourage development of a rich cultural environment and to foster the arts; and to provide means and methods for the municipalities and regions of this State to plan for the prevention, minimization, and future elimination of such land development problems as may presently exist or which may be foreseen and to implement those plans when and where appropriate. In implementing any regulatory power under this chapter, municipalities shall take care to protect the constitutional right of the people to acquire, possess, and protect property.
(b) It is also the intent of the Legislature that municipalities, regional planning commissions, and State agencies shall engage in a continuing planning process that will further the following goals:
(1) To establish a coordinated, comprehensive planning process and policy framework to guide decisions by municipalities, regional planning commissions, and State agencies.
(2) To encourage citizen participation at all levels of the planning process, and to assure that decisions shall be made at the most local level possible commensurate with their impact.
(3) To consider the use of resources and the consequences of growth and development for the region and the State, as well as the community in which it takes place.
(4) To encourage and assist municipalities to work creatively together to develop and implement plans.
(c) In addition, this chapter shall be used to further the following specific goals:
(1) To plan development so as to maintain the historic settlement pattern of compact village and urban centers separated by rural countryside.
(A) Intensive residential development should be encouraged primarily in downtown centers, village centers, planned growth areas, and village areas as described in section 4348a of this title, and strip development along highways should be avoided. These areas should be planned so as to accommodate a substantial majority of housing needed to reach the housing targets developed for each region pursuant to subdivision 4348a(a)(9) of this title.
(B) Economic growth should be encouraged in locally and regionally designated growth areas, employed to revitalize existing village and urban centers, or both.
(C) Public investments, including the construction or expansion of infrastructure, should reinforce the planned growth patterns of the area.
(D) Development should be undertaken in accordance with smart growth principles as defined in subdivision 2791(13) of this title.
(2) To provide a strong and diverse economy that provides satisfying and rewarding job opportunities and that maintains high environmental standards, and to expand economic opportunities in areas with high unemployment or low per capita incomes.
(3) To broaden access to educational and vocational training opportunities sufficient to ensure the full realization of the abilities of all Vermonters.
(4) To provide for safe, convenient, economic, and energy efficient transportation systems that respect the integrity of the natural environment, including public transit options and paths for pedestrians and bicyclers.
(A) Highways, air, rail, and other means of transportation should be mutually supportive, balanced, and integrated.
(5) To identify, protect, and preserve important natural and historic features of the Vermont landscape, including:
(A) significant natural and fragile areas;
(B) outstanding water resources, including lakes, rivers, aquifers, shorelands, and wetlands;
(C) significant scenic roads, waterways, and views;
(D) important historic structures, sites, or districts, archaeological sites, and archaeologically sensitive areas.
(6) To maintain and improve the quality of air, water, wildlife, forests, and other land resources.
(A) Vermont’s air, water, wildlife, mineral, and land resources should be planned for use and development according to the principles set forth in 10 V.S.A. § 6086(a).
(B) Vermont’s water quality should be maintained and improved according to the policies and actions developed in the basin plans established by the Secretary of Natural Resources under 10 V.S.A. § 1253.
(C) Vermont’s forestlands should be managed so as to maintain and improve forest blocks and habitat connectors.
(7) To make efficient use of energy, provide for the development of renewable energy resources, and reduce emissions of greenhouse gases.
(A) General strategies for achieving these goals include increasing the energy efficiency of new and existing buildings; identifying areas suitable for renewable energy generation; encouraging the use and development of renewable or lower emission energy sources for electricity, heat, and transportation; and reducing transportation energy demand and single occupancy vehicle use.
(B) Specific strategies and recommendations for achieving these goals are identified in the State energy plans prepared under 30 V.S.A. §§ 202 and 202b.
(8) To maintain and enhance recreational opportunities for Vermont residents and visitors.
(A) Growth should not significantly diminish the value and availability of outdoor recreational activities.
(B) Public access to noncommercial outdoor recreational opportunities, such as lakes and hiking trails, should be identified, provided, and protected wherever appropriate.
(9) To encourage and strengthen agricultural and forest industries.
(A) Strategies to protect long-term viability of agricultural and forestlands should be encouraged and should include maintaining low overall density.
(B) The manufacture and marketing of value-added agricultural and forest products should be encouraged.
(C) The use of locally-grown food products should be encouraged.
(D) Sound forest and agricultural management practices should be encouraged.
(E) Public investment should be planned so as to minimize development pressure on agricultural and forest land.
(10) To provide for the wise and efficient use of Vermont’s natural resources and to facilitate the appropriate extraction of earth resources and the proper restoration and preservation of the aesthetic qualities of the area.
(11) To ensure the availability of safe and affordable housing for all Vermonters.
(A) Housing should be encouraged to meet the needs of a diversity of social and income groups in each Vermont community, particularly for those citizens of low and moderate income, and consistent with housing targets provided for in subdivision 4348a(a)(9) of this title.
(B) New and rehabilitated housing should be safe, sanitary, located conveniently to employment and commercial centers, and coordinated with the provision of necessary public facilities and utilities.
(C) Sites for multifamily and manufactured housing should be readily available in locations similar to those generally used for single-family dwellings.
(D) Accessory dwelling units within or attached to single-family residences that provide affordable housing in close proximity to cost-effective care and supervision for relatives, elders, or persons who have a disability should be allowed.
(12) To plan for, finance, and provide an efficient system of public facilities and services to meet future needs.
(A) Public facilities and services should include fire and police protection, emergency medical services, schools, water supply, and sewage and solid waste disposal.
(B) The rate of growth should not exceed the ability of the community and the area to provide facilities and services.
(13) To ensure the availability of safe and affordable child care and to integrate child care issues into the planning process, including child care financing, infrastructure, business assistance for child care providers, and child care work force development.
[Subdivision (c)(14) effective until January 1, 2028; see also subdivision (c)(14) effective January 1, 2028 set out below.]
(14) To encourage flood resilient communities.
(A) New development in identified flood hazard and river corridor protection areas should be avoided. If new development is to be built in such areas, it should not exacerbate flooding and fluvial erosion.
(B) The protection and restoration of floodplains and upland forested areas that attenuate and moderate flooding and fluvial erosion should be encouraged.
(C) Flood emergency preparedness and response planning should be encouraged.
[Subdivision (c)(14) effective January 1, 2028; see also subdivision (c)(14) effective until January 1, 2028 set out above.]
(14) To encourage flood resilient communities.
(A) New development in identified flood hazard, fluvial erosion, and river corridor protection areas should be avoided. If new development is to be built in such areas, it should not exacerbate flooding and fluvial erosion and should meet or exceed the statewide minimum flood hazard area standards established by rule by the Agency of Natural Resources.
(B) The protection and restoration of floodplains and upland forested areas that attenuate and moderate flooding and fluvial erosion should be encouraged.
(C) Flood emergency preparedness and response planning should be encouraged.
(15) To equitably distribute environmental benefits and burdens as described in 3 V.S.A. chapter 72.
(d) All plans and regulations prepared under the authority of this chapter shall be based upon surveys of existing conditions and probable future trends, and shall be made in the light of present and future growth and requirements, and with reasonable consideration, for the landowner, to topography, to needs and trends of the municipality, the region and the State, to the character of each area and to its peculiar suitability for particular uses in relationship to surrounding areas, and with a view to conserving the value of buildings.
(e) Use of goals.
(1) The goals established in this section shall be employed, as provided under this chapter, to carry out the general purposes established in this section.
(2) After July 1, 1989, none of the following shall be prepared or adopted, unless consistent with the goals established in this section:
(A) all plans prepared by regional planning commissions, and all plans required of State agencies under 3 V.S.A. § 4020;
(B) measures implementing State agency plans.
(f) Standard of review.
(1) As used in this chapter, “consistent with the goals” requires substantial progress toward attainment of the goals established in this section, unless the planning body determines that a particular goal is not relevant or attainable. If such a determination is made, the planning body shall identify the goal in the plan and describe the situation, explain why the goal is not relevant or attainable, and indicate what measures should be taken to mitigate any adverse effects of not making substantial progress toward that goal. The determination of relevance or attainability shall be subject to review as part of a consistency determination under this chapter.
(2) As used in this chapter, for one plan to be “compatible with” another, the plan in question, as implemented, will not significantly reduce the desired effect of the implementation of the other plan. If a plan, as implemented, will significantly reduce the desired effect of the other plan, the plan may be considered compatible if it includes the following:
(A) a statement that identifies the ways that it will significantly reduce the desired effect of the other plan;
(B) an explanation of why any incompatible portion of the plan in question is essential to the desired effect of the plan as a whole;
(C) an explanation of why, with respect to any incompatible portion of the plan in question, there is no reasonable alternative way to achieve the desired effect of the plan; and
(D) an explanation of how any incompatible portion of the plan in question has been structured to mitigate its detrimental effects on the implementation of the other plan.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 116, § 1; 1979, No. 174 (Adj. Sess.), § 1; 1987, No. 200 (Adj. Sess.), § 7, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 1; 1991, No. 130 (Adj. Sess.), § 1; 2003, No. 67, § 7b; 2003, No. 115 (Adj. Sess.), § 82; 2013, No. 16, § 1, eff. July 1, 2014; 2013, No. 96 (Adj. Sess.), § 161; 2013, No. 146 (Adj. Sess.), § 4, eff. May 27, 2014; 2015, No. 64, § 27; 2015, No. 171 (Adj. Sess.), § 14; 2015, No. 174 (Adj. Sess.), § 2; 2023, No. 121 (Adj. Sess.), § 7, eff. January 1, 2028; 2023, No. 181 (Adj. Sess.), § 45, eff. June 17, 2024.)
§ 4303 Definitions
The following definitions shall apply throughout this chapter unless the context otherwise requires:
(1) “Affordable housing” means either of the following:
(A) Owner-occupied housing for which the total annual cost of ownership, including principal, interest, taxes, insurance, and condominium association fees, does not exceed 30 percent of the gross annual income of a household at 120 percent of the highest of the following:
(i) the county median income, as defined by the U.S. Department of Housing and Urban Development;
(ii) the standard metropolitan statistical area median income if the municipality is located in such an area, as defined by the U.S. Department of Housing and Urban Development; or
(iii) the statewide median income, as defined by the U.S. Department of Housing and Urban Development.
(B) Rental housing for which the total annual cost of renting, including rent, utilities, and condominium association fees, does not exceed 30 percent of the gross annual income of a household at 80 percent of the highest of the following:
(i) the county median income, as defined by the U.S. Department of Housing and Urban Development;
(ii) the standard metropolitan statistical area median income if the municipality is located in such an area, as defined by the U.S. Department of Housing and Urban Development; or
(iii) the statewide median income, as defined by the U.S. Department of Housing and Urban Development.
(2) “Affordable housing development” means a housing development of which at least 20 percent of the units or a minimum of five units, whichever is greater, are affordable housing units. Affordable units shall be subject to covenants or restrictions that preserve their affordability for a minimum of 15 years or longer as provided in municipal bylaws.
(3) “Appropriate municipal panel” means a planning commission performing development review, a board of adjustment, a development review board, or a legislative body performing development review.
(4) “Bylaws” means municipal regulations applicable to land development adopted under the authority of this chapter.
(5) “Capacity study” means an inventory of available natural and human-made resources, based on detailed data collection, that identifies the capacities and limits of those resources to absorb land development. Data gathered, relevant to the geographic information system, shall be compatible with, useful to, and shared with the geographic information system established under 3 V.S.A. § 20.
(6) “Conformance with the plan” means a proposed implementation tool, including a bylaw or bylaw amendment that is in accord with the municipal plan in effect at the time of adoption, when the bylaw or bylaw amendment includes all the following:
(A) Makes progress toward attaining, or at least does not interfere with, the goals and policies contained in the municipal plan.
(B) Provides for proposed future land uses, densities, and intensities of development contained in the municipal plan.
(C) Carries out, as applicable, any specific proposals for community facilities, or other proposed actions contained in the municipal plan.
(7) “Element” means a component of a plan.
(8) “Flood hazard area” for purposes of sections 4348a, 4382, 4411, 4424, and 4469 of this title shall have the same meaning as “area of special flood hazard” under 44 C.F.R. § 59.1. Further, with respect to flood, river corridor protection area, and other hazard area regulation pursuant to this chapter, the following terms shall have the following meanings:
(A) “Floodproofing” shall have the same meaning as “flood proofing” under 44 C.F.R. § 59.1.
(B) “Floodway” shall have the same meaning as “regulatory floodway” under 44 C.F.R. § 59.1.
(C) “Hazard area” means land subject to landslides, soil erosion, fluvial erosion, earthquakes, water supply contamination, or other natural or human-made hazards as identified within a “local mitigation plan” enacted under section 4424 of this title and in conformance with and approved pursuant to the provisions of 44 C.F.R. § 201.6.
(D) “National Flood Insurance Program” means the National Flood Insurance Program under 42 U.S.C. chapter 50 and implementing federal regulations in 44 C.F.R. parts 59 and 60.
(E) “New construction” means construction of structures or filling commenced on or after the effective date of the adoption of a community’s flood hazard bylaws.
(F) “Substantial improvement” means any repair, reconstruction, or improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure either before the improvement or repair is started or, if the structure has been damaged and is being restored, before the damage occurred. However, the term does not include either of the following:
(i) Any project or improvement of a structure to comply with existing State or local health, sanitary, or safety code specifications that are solely necessary to ensure safe living conditions.
(ii) Any alteration of a structure listed on the National Register of Historic Places or a State inventory of historic places.
(G) “Equilibrium condition” means the width, depth, meander pattern, and longitudinal slope of a stream channel that occurs when water flow, sediment, and woody debris are transported by the stream in such a manner that it generally maintains dimensions, pattern, and slope without unnaturally aggrading or degrading the channel bed elevation.
(H) “Fluvial erosion” means the erosion or scouring of riverbeds and banks during high flow conditions of a river.
(I) “River” means the full length and width, including the bed and banks, of any watercourse, including rivers, streams, creeks, brooks, and branches which experience perennial flow. “River” does not mean constructed drainageways, including water bars, swales, and roadside ditches.
(J) “River corridor” means the land area adjacent to a river that is required to accommodate the dimensions, slope, planform, and buffer of the naturally stable channel and that is necessary for the natural maintenance or natural restoration of a dynamic equilibrium condition and for minimization of fluvial erosion hazards, as delineated by the Agency of Natural Resources in accordance with river corridor protection procedures.
(K) “River corridor protection area” means the area within a delineated river corridor subject to fluvial erosion that may occur as a river establishes and maintains the dimension, pattern, and profile associated with its dynamic equilibrium condition and that would represent a hazard to life, property, and infrastructure placed within the area.
(9) “Legislative body” means the selectboard in the case of a town, the trustees in the case of an incorporated village, and the mayor, alderpersons, and city council members in the case of a city, and the supervisor in the case of an unorganized town or gore.
(10) “Land development” means the division of a parcel into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mining, excavation, or landfill, and any change in the use of any building or other structure, or land, or extension of use of land.
(11) “Municipal land use permit” means any of the following whenever issued:
(A) A zoning, subdivision, site plan, or building permit or approval, any of which relate to “land development” as defined in this section, that has received final approval from the applicable board, commission, or officer of the municipality.
(B) A wastewater system permit issued under any municipal ordinance adopted pursuant to chapter 102 of this title.
(C) Final official minutes of a meeting that relate to a permit or approval described in subdivision (11)(A) or (B) of this section that serve as the sole evidence of that permit or approval.
(D) A certificate of occupancy, certificate of compliance, or similar certificate that relates to the permits or approvals described in subdivision (11)(A) or (B) of this section, if the bylaws so require.
(E) An amendment of any of the documents listed in subdivisions (11)(A) through (D) and (F) of this section.
(F) A certificate of approved location for a salvage yard issued under subchapter 10 of chapter 61 of this title.
(12) “Municipality” means a town, a city, or an incorporated village or an unorganized town or gore. An incorporated village shall be deemed to be within the jurisdiction of a town for the purposes of this chapter, except to the extent that a village adopts its own plan and one or more bylaws either before, concurrently with, or subsequent to such action by the town, in which case the village shall have all authority granted a municipality under this chapter and the plans and bylaws of the town shall not apply during such period of time that said village plan and bylaws are in effect.
(13) “Nonconforming lots or parcels” means lots or parcels that do not conform to the present bylaws covering dimensional requirements but were in conformance with all applicable laws, ordinances, and regulations prior to the enactment of the present bylaws, including a lot or parcel improperly authorized as a result of error by the administrative officer.
(14) “Nonconforming structure” means a structure or part of a structure that does not conform to the present bylaws but was in conformance with all applicable laws, ordinances, and regulations prior to the enactment of the present bylaws, including a structure improperly authorized as a result of error by the administrative officer.
(15) “Nonconforming use” means use of land that does not conform to the present bylaws but did conform to all applicable laws, ordinances, and regulations prior to the enactment of the present bylaws, including a use improperly authorized as a result of error by the administrative officer.
(16) “Nonconformity” means a nonconforming use, structure, lot, or parcel.
(17) “Person” means an individual, a corporation, a partnership, an association, and any other incorporated or unincorporated organization or group.
(18) “Plan” means a municipal plan adopted under section 4385 of this title.
(19) “Planned unit development” means one or more lots, tracts, or parcels of land to be developed as a single entity, the plan for which may propose any authorized combination of density or intensity transfers or increases, as well as the mixing of land uses. This plan, as authorized, may deviate from bylaw requirements that are otherwise applicable to the area in which it is located with respect to lot size, bulk, or type of dwelling or building, use, density, intensity, lot coverage, parking, required common open space, or other standards.
(20) “Planning commission” means a planning commission for a municipality created under subchapter 2 of this chapter.
(21) “Public notice” means the form of notice prescribed by section 4444, 4449, or 4464 of this title, as the context requires.
(22) “Regional plan” means a plan adopted under section 4348 of this title.
(23) “Regional planning commission” means a planning commission for a region created under subchapter 3 of this chapter.
(24) “Renewable energy resources” means energy available for collection or conversion from direct sunlight, wind, running water, organically derived fuels, including wood and agricultural sources, waste heat, and geothermal sources.
(25) “Rural town” means a town having, as at the date of the most recent U.S. census, a population of less than 2,500 persons, as evidenced by that census, or a town having 2,500 or more but less than 5,000 persons that has voted by Australian ballot to be considered a rural town.
(26) “Should” means that an activity is encouraged but not mandated.
(27) “Structure” means an assembly of materials for occupancy or use, including a building, mobile home or trailer, sign, wall, or fence.
(28) “Technical deficiency” means a defect in a proposed plan or bylaw, or an amendment or repeal thereof, correction of which does not involve substantive change to the proposal, including corrections to grammar, spelling, and punctuation, as well as the numbering of sections.
(29) “Telecommunications facility” means a tower or other support structure, including antennae, that will extend 20 or more feet vertically, and related equipment, and base structures to be used primarily for communication or broadcast purposes to transmit or receive communication or broadcast signals.
(30) “Transit pass” means any pass, token, fare card, voucher, or similar item entitling a person to transportation to and from work on mass transit facilities and provided by an employer consistent with Internal Revenue Code Section 132(f).
(31) “Urban municipality” means a city, an incorporated village, or any town that is not a rural town.
(32) “Wetlands” means those areas of the State that are inundated by surface or groundwater with a frequency sufficient to support vegetation or aquatic life that depend on saturated or seasonally saturated soil conditions for growth and reproduction. Such areas include marshes, swamps, sloughs, potholes, fens, river and lake overflows, mud flats, bogs, and ponds, but excluding such areas as grow food or crops in connection with farming activities.
(33) “Public road” means a State highway as defined in 19 V.S.A. § 1 or a class 1, 2, or 3 town highway as defined in 19 V.S.A. § 302(a). A municipality may, at its discretion, define a public road to also include a class 4 town highway as defined in 19 V.S.A. § 302(a).
(34) “Forest block” means a contiguous area of forest in any stage of succession and not currently developed for nonforest use. A forest block may include recreational trails, wetlands, or other natural features that do not themselves possess tree cover, and uses exempt from regulation under subsection 4413(d) of this title.
(35) “Forest fragmentation” means the division or conversion of a forest block by land development other than by a recreational trail or use exempt from regulation under subsection 4413(d) of this title.
(36) “Habitat connector” means land or water, or both, that links patches of wildlife habitat within a landscape, allowing the movement, migration, and dispersal of animals and plants and the functioning of ecological processes. A habitat connector may include recreational trails and uses exempt from regulation under subsection 4413(d) of this title. In a plan or other document issued pursuant to this chapter, a municipality or regional plan commission may use the phrase “wildlife corridor” in lieu of “habitat connector.”
(37) “Recreational trail” means a corridor that is not paved and that is used for hiking, walking, bicycling, cross-country skiing, snowmobiling, all-terrain vehicle riding, horseback riding, and other similar recreational activity.
(38) “Accessory dwelling unit” means a distinct unit that is clearly subordinate to a single-family dwelling and has facilities and provisions for independent living, including sleeping, food preparation, and sanitation, provided there is compliance with all the following:
(A) the property has sufficient wastewater capacity; and
(B) the unit does not exceed 30 percent of the total habitable floor area of the single-family dwelling or 900 square feet, whichever is greater.
(39) “Duplex” means a residential building that has two dwelling units in the same building and neither unit is an accessory dwelling unit.
(40) “Emergency shelter” means any facility, the primary purpose of which is to provide a temporary shelter for the homeless in general or for specific populations of the homeless and that does not require occupants to sign leases or occupancy agreements.
(41) “Multiunit or multifamily dwelling” means a building that contains three or more dwelling units in the same building.
(42)(A) An area “served by municipal sewer and water infrastructure” means:
(i) an area where residential connections and expansions are available to municipal water and direct and indirect discharge wastewater systems and not prohibited by:
(I) State regulations or permits;
(II) identified capacity constraints; or
(III) municipally adopted service and capacity agreements; or
(ii) an area established by the municipality by ordinance or bylaw where residential connections and expansions are available to municipal water and direct and indirect discharge wastewater systems and which may exclude:
(I) flood hazard or inundation areas as established by statute, river corridors or fluvial erosion areas as established by statute, shorelands, areas within a zoning district or overlay district the purpose of which is natural resource protection, and wherever year-round residential development is not allowed;
(II) areas with identified service limits established by State regulations or permits, identified capacity constraints, or municipally adopted service and capacity agreements;
(III) areas served by sewer and water to address an identified community-scale public health hazard or environmental hazard;
(IV) areas serving a mobile home park that is not within an area planned for year-round residential growth;
(V) areas serving an industrial site or park;
(VI) areas where service lines are located to serve the areas described in subdivisions (III)–(V) of this subdivision (ii), but no connections or expansions are permitted; or
(VII) areas that, through an approved Planned Unit Development under section 4417 of this title or Transfer of Development Rights under section 4423 of this title, prohibit year-round residential development.
(B) Municipally adopted areas served by municipal sewer and water infrastructure that limit sewer and water connections and expansions shall not result in the unequal treatment of housing by discriminating against a year-round residential use or housing type otherwise allowed in this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 116, § 2; 1969, No. 223 (Adj. Sess.), § 2, eff. March 31, 1970; 1971, No. 78, § 3, eff. April 16, 1971; 1971, No. 257 (Adj. Sess.), § 20, eff. April 11, 1972; 1973, No. 261 (Adj. Sess.), § 1, eff. July 1, 1974; 1975, No. 164 (Adj. Sess.), § 1; 1979, No. 174 (Adj. Sess.), § 2; 1981, No. 132 (Adj. Sess.), §§ 1, 1a, 2, 2a; 1985, No. 188 (Adj. Sess.), § 6; 1987, No. 200 (Adj. Sess.), § 17, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 2; 1995, No. 122 (Adj. Sess.), § 1, eff. Apr. 25, 1996; 1997, No. 94 (Adj. Sess.), § 6, eff. April 15, 1998; 1999, No. 46, § 4, eff. May 26, 1999; 1999, No. 161 (Adj. Sess.), § 7; 2003, No. 115 (Adj. Sess.), § 83; 2009, No. 93 (Adj. Sess.), § 5; 2011, No. 138 (Adj. Sess.), § 11, eff. May 14, 2012; 2011, No. 155 (Adj. Sess.), § 13; 2013, No. 16, § 2, eff. July 1, 2014; 2013, No. 34, § 14; 2015, No. 171 (Adj. Sess.), § 15, eff. Jan. 1, 2018; 2017, No. 69, § H.2, eff. June 28, 2017; 2023, No. 47, § 4, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 328, eff. July 1, 2024.)
§ 4303a Computation of time
Where an event is required or permitted to occur by this chapter before, on, or after a specified period of time measured from another event, in calculating the period:
(1) the first day shall not be counted; and
(2) the final day shall be counted.
(Added 1981, No. 132 (Adj. Sess.), § 3.)
§ 4304 Planning and land use manual
(a) The Commissioner of Housing and Community Development shall prepare, maintain, and distribute from time to time to all municipalities a manual setting forth:
(1) a copy of this chapter, together with all amendments thereof;
(2) examples of land planning policies, and maps and documents prepared in conformance with plan requirements;
(3) an explanation and illustrative examples of bylaws, capital programs, budgets, and procedures authorized in this chapter; and
(4) other explanatory material and data which will aid municipalities in the preparation of plans, capital budgets, programs, and the administration of bylaws authorized in this chapter.
(b) The Commissioner of Housing and Community Development shall, from time to time, confer with interested persons with a view toward ensuring the maintenance of such manual in a form most useful to those regions and municipalities making use of it.
(c) Sections of this manual may be cited in any plan or bylaw in the same manner as citations of this chapter, and may be incorporated by reference in any plan bylaw.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 22, eff. April 11, 1972; 1975, No. 164 (Adj. Sess.), § 2; 1995, No. 190 (Adj. Sess.), § 1(a); 2013, No. 146 (Adj. Sess.), § 5, eff. May 27, 2014.)
§ 4305 Repealed
[Repealed]
2009, No. 146 (Adj. Sess), § G4, eff. June 1, 2010.
§ 4306 Municipal and Regional Planning and Resilience Fund
(a)(1) The Municipal and Regional Planning and Resilience Fund for the purpose of assisting municipal and regional planning commissions to carry out the intent of this chapter is hereby created in the State Treasury.
(2) The Fund shall be composed of 13 percent of the revenue deposited from the property transfer tax under 32 V.S.A. chapter 231 and any monies from time to time appropriated to the Fund by the General Assembly or received from any other source, private or public. All balances at the end of any fiscal year shall be carried forward and remain in the Fund. Interest earned by the Fund shall be deposited in the Fund.
(3) Of the revenues in the Fund, each year:
(A) 10 percent shall be disbursed to the Vermont Center for Geographic Information;
(B) 70 percent shall be disbursed to the Secretary of Commerce and Community Development for performance contracts with regional planning commissions to provide regional planning services pursuant to section 4341a of this title; and
(C) 20 percent shall be disbursed to municipalities.
(b)(1) Allocations for performance contract funding to regional planning commissions shall be determined according to a formula to be adopted by rule under 3 V.S.A. chapter 25 by the Department for the assistance of the regional planning commissions. Disbursement of funding to regional planning commissions shall be predicated upon meeting performance goals and targets pursuant to the terms of the performance contract.
(2) Disbursement to municipalities shall be awarded annually on or before December 31 through a competitive program administered by the Department providing the opportunity for any eligible municipality or municipalities to compete regardless of size, provided that to receive funds, a municipality:
(A) shall be confirmed under section 4350 of this title; or
(B)(i) shall use the funds for the purpose of developing a municipal plan to be submitted for approval by the regional planning commission, as required for municipal confirmation under section 4350 of this title; and
(ii) shall have voted at an annual or special meeting to provide local funds for municipal planning and resilience purposes and regional planning purposes.
(3) Of the annual disbursement to municipalities, an amount not to exceed 20 percent of the total may be disbursed to the Department to administer a program providing direct technical consulting assistance under retainer on a rolling basis to any eligible municipality to meet the requirements for designated neighborhood development area under chapter 76A of this title, provided that the municipality is eligible for funding under subdivision (2) of this subsection and meets funding guidelines established by the Department to ensure accessibility for lower capacity communities, municipal readiness, and statewide coverage.
(4) Of the annual disbursement to municipalities, the Department may allocate funding as bylaw modernization grants under section 4307 of this title.
(c) Funds allocated to municipalities shall be used for the purposes of:
(1) funding the regional planning commission in undertaking capacity studies;
(2) carrying out the provisions of subchapters 5 through 10 of this chapter;
(3) acquiring development rights, conservation easements, or title to those lands, areas, and strictures identified in either regional or municipal plans as requiring special consideration for provision of needed housing, aquifer protection, flood protection, climate resilience, open space, farmland preservation, or other conservation purposes; and
(4) reasonable and necessary costs of administering the Fund by the Department of Housing and Community Development, not to exceed six percent of the municipality allocation.
(d) Until July 1, 2027, the annual disbursement to municipalities shall:
(1) prioritize funding grants to municipalities that do not have zoning or subdivision bylaws to create zoning or subdivision bylaws;
(2) allow a regional planning commission to submit an application for disbursement on behalf of a municipality; and
(3) not require a municipality without zoning or subdivision bylaws to contribute matching funds in order to receive a grant.
(Added 1987, No. 200 (Adj. Sess.), § 4; amended 1997, No. 156 (Adj. Sess.), § 41; 1999, No. 1, § 97b, eff. March 31, 1999; 1999, No. 49, § 80; 1999, No. 62, § 263; 1999, No. 152 (Adj. Sess.), § 271d; 2003, No. 115 (Adj. Sess.), § 84; 2003, No. 164 (Adj. Sess.), § 14, eff. June 12, 2004; 2015, No. 11, § 29; 2021, No. 182 (Adj. Sess.), § 26, eff. July 1, 2022; 2023, No. 47, § 14, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 62, § 76, eff. June 17, 2024.)
§ 4307 Municipal Bylaw Modernization Grants
(a) There are created Municipal Bylaw Modernization Grants to assist municipalities in updating their land use and development bylaws. Bylaws updated under this section shall increase housing choice, affordability, and opportunity in areas planned for smart growth. The Grants shall be funded by monies allocated from the municipality allocation of the Municipal and Regional Planning Funds established in subdivision 4306(a)(3)(C) of this title and any other monies appropriated for this purpose.
(b) Disbursement to municipalities shall be administered by the Department of Housing and Community Development through a competitive process providing the opportunity for all regions and any eligible municipality to compete regardless of size.
(c) Funds may be disbursed by the Department in installments to ensure the municipal bylaw updates meet the goals of this section.
(d) Funding may be used for the cost of regional planning commission staff or consultant time and any other purpose approved by the Department.
(e) A municipality grantee shall use the funds to prepare amendments to bylaws to increase housing choice, affordability, and opportunity and that support a neighborhood development pattern that is pedestrian oriented in areas planned for smart growth consistent with the smart growth principles established in section 2791 of this title and that prioritize projects in designated areas in accordance with chapter 76A of this title.
(f) To receive the grant, the municipality shall:
(1) identify municipal water and wastewater disposal infrastructure, municipal water and sewer service areas, and the constraints on that infrastructure based on the best available data;
(2) increase allowed housing types and uses, which may include duplexes, to the same extent as single-family homes;
(3) include parking waiver provisions in areas planned for smart growth consistent with smart growth principles as defined in section 2791 of this title and appropriate situations;
(4) review and modify street standards that implement the complete streets principles as described in 19 V.S.A. § 309d and that are oriented to pedestrians;
(5) reduce nonconformities by making the allowed standards principally conform to the existing settlement within any area designated under chapter 76A of this title and increase allowed lot, building, and dwelling unit density by adopting dimensional, use, parking, and other standards that allow compact neighborhood form and support walkable lot and dwelling unit density, which may be achieved with a standard allowing at least four units per acre or allowing the receipt of a State or municipal water and wastewater permit to determine allowable density or by other means established in guidelines issued by the Department;
(6) restrict development of and minimize impact to important natural resources, including new development in flood hazard areas, undeveloped floodplains, and river corridor areas, unless lawfully allowed for infill development in §29-201 of the Vermont Flood Hazard Area and River Corridor Rule;
(7) update the municipal plan’s housing element as provided in subdivision 4382(a)(10) of this title related to addressing lower- and moderate-income housing needs, implement that element of the plan including through the bylaw amendments, and demonstrate how those bylaws support the implementation of the housing element; and
(8) comply with State and Federal Fair Housing Act, including the fair housing provisions of Vermont’s Planning and Development Act.
(g) On or before September 1, 2022, the Department shall adopt guidelines to assist municipalities applying for grants under this section.
(Added 2021, No. 182 (Adj. Sess.), § 27, eff. July 1, 2022.)
Subchapter 2 Municipal Planning Commissions
§ 4321 Creation of planning commissions
(a) A planning commission may be created at any time by the act of the legislative body of a municipality.
(b) In any urban municipality, the legislative body may create a planning department headed by a planning director as a substitute for a planning commission, and, in that event all of the powers and duties of planning commissions set forth herein shall be exercised by such planning director, subject to such regulations as that executive body shall from time to time specify, and sections 4322 and 4323 of this title shall not apply to such director. In such event, that legislative body may further create an advisory planning council, which shall only function in an advisory capacity to the planning director in the exercise of his or her powers and duties, and shall have such other functions as that legislative body shall, by resolution, assign to such council.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 4322 Planning commission; membership
(a) A planning commission shall have not less than three nor more than nine voting members. All members may be compensated and reimbursed by the municipality for necessary and reasonable expenses. At least a majority of the members of a planning commission shall be residents of the municipality.
(b) The legislative body of a rural town, or not more than two elected or appointed officials of an urban municipality who are chosen by the legislative body of the urban municipality, shall be nonvoting ex officio members of a planning commission. If a municipality has an energy coordinator under chapter 33, subchapter 12 of this title, the energy coordinator may be a nonvoting ex officio member of the planning commission.
(c) Notwithstanding subsection (a) of this section:
(1) for an appointed planning commission, the legislative body may change the number of members that may be appointed to the commission; and
(2) for an elected planning commission, a municipality may vote at an annual or special meeting to change the number of members that may be elected to the commission.
(d) Notwithstanding subsection 4323(c) of this subchapter, if the number of members on an appointed or elected planning commission is reduced, the members with the nearest expiration of their term of office shall serve until the expiration of that term and then the office shall terminate.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 116, § 3; 1973, No. 261 (Adj. Sess.), § 2, eff. July 1, 1974; 1979, No. 174 (Adj. Sess.), § 3; 2021, No. 157 (Adj. Sess.), § 6, eff. July 1, 2022.)
§ 4323 Appointment, term, and vacancy; rules
(a) Members of a planning commission shall be appointed and any vacancy filled by the legislative body of a municipality. The length of the term of planning commission members shall be determined by the legislative body of a municipality. Any member may be removed at any time by unanimous vote of the legislative body. Any appointment to fill a vacancy shall be for the unexpired term.
(b) A planning commission shall elect a chair and a clerk and, at its organization meeting, shall adopt by majority vote of those members present and voting such other rules as it deems necessary and appropriate for the performance of its functions. A planning commission shall keep a record of its resolutions and transactions, which shall be maintained as a public record of the municipality.
(c) As an alternative to appointment under subsection (a) of this section, municipalities may choose to elect planning commissioners for terms of one to four years. The proposal to elect and the length of terms to be filled shall be determined pursuant to a duly warned article at an annual or special meeting of the municipality. If a municipality chooses to elect planning commissioners:
(1) The length and spacing of terms shall be decided by vote of the municipality.
(2) Elections shall occur only as terms are completed, or as vacancies occur, or as new planning commissions are created.
(3) Vacancies may be filled by appointment of the legislative body only until the next meeting of the municipality, at which time the voters shall elect a commissioner to fill the unexpired term.
(4) Elected commissioners may not be removed by action of the legislative body.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; 1989, No. 280 (Adj. Sess.), § 3a; 2003, No. 103 (Adj. Sess.), § 1.)
§ 4324 Existing commissions
The members of any existing planning commission or body having similar powers and functions established under former laws shall continue in office until the end of their term as so established. New members shall be appointed and vacancies filled only under this chapter. Such commissions shall have, on March 23, 1968, all of the powers and duties of a planning commission created under this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 4325 Powers and duties of planning commissions
Any planning commission created under this chapter may:
(1) Prepare a plan and amendments thereof for consideration by the legislative body and to review any amendments thereof initiated by others as set forth in subchapter 5 of this chapter.
(2) Prepare and present to the legislative body proposed bylaws and make recommendations to the legislative body on proposed amendments to such bylaws as set forth in subchapter 6 of this chapter.
(3) Administer bylaws adopted under this chapter, except to the extent that those functions are performed by a development review board.
(4) Undertake capacity studies and make recommendations on matters of land development, urban renewal, transportation, economic and social development, urban beautification and design improvements, historic and scenic preservation, the conservation of energy and the development of renewable energy resources, and wetland protection. Data gathered by the planning commission that is relevant to the geographic information system established under 3 V.S.A. § 20 shall be compatible with, useful to, and shared with that system.
(5) Prepare and present to the legislative body recommended building, plumbing, fire, electrical, housing, and related codes and enforcement procedures, and construction specifications for streets and related public improvements.
(6) Prepare and present a recommended capital budget and program for a period of five years, as set forth in section 4440 of this title, for action by the legislative body, as set forth under section 4443 of this title.
(7) Hold public meetings.
(8) Require from other departments and agencies of the municipality such available information as relates to the work of the planning commission.
(9) In the performance of its functions, enter upon land to make examinations and surveys.
(10) Participate in a regional planning program.
(11) Retain staff and consultant assistance in carrying out its duties and powers.
(12) Undertake comprehensive planning, including related preliminary planning and engineering studies.
(13) Perform such other acts or functions as it may deem necessary or appropriate to fulfill the duties and obligations imposed by, and the intent and purposes of, this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1979, No. 174 (Adj. Sess.), § 4; 1985, No. 188 (Adj. Sess.), § 7; 1987, No. 200 (Adj. Sess.), § 18, eff. July 1, 1989; 1993, No. 232 (Adj. Sess.), § 45, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 85.)
§ 4326 Appropriations, reports, and records
Every municipality may appropriate to and expend funds for its planning commission. The planning commission shall keep a record of its business and shall make an annual report to the municipality. A planning commission may accept and utilize any funds, personal or other assistance made available by this State or federal government or any of their agencies or from private sources.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 4327 Joint planning commissions
(a) Any planning commission of a municipality which is a town having one or more municipalities contained within its area or which is one of such contained municipalities shall, upon the act of the legislative body of each municipality, be the planning commission under this chapter for such town and all such contained municipalities.
(b) A planning commission acting for more than one municipality shall be the planning commission for such town and all such contained municipalities until such joint arrangement is terminated by the act of the legislative body of any participating municipality.
(c) In any town containing one or more villages, any act required under this chapter to be taken by a legislative body or by the vote of a municipality shall be taken by the legislative body of the town or, as the case may be, the voters of the town, including the voters of any contained village.
(d) If a contained village adopts its own plan, capital budget, or program or one or more bylaws, then any act required under this chapter for the adoption shall be taken by the legislative body or voters of the village. Nevertheless, the voters of the village shall remain as voters in the town for the adoption of town bylaws and capital budget and program, as provided in subsection (c) of this section.
(e) A single planning commission, appointed by the Board of Governors of the unified towns and gores of Essex County, namely Averill, Avery’s Gore, Ferdinand, Lewis, Warner’s Grant, and Warren’s Gore, shall serve as the planning commission for these towns and gores.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1973, No. 188 (Adj. Sess.), § 1, eff. July 1, 1974; 1973, No. 261 (Adj. Sess.),§§ 3, 7 eff. July 1, 1974; 1975, No. 164 (Adj. Sess.), § 3; 2005, No. 30, § 1; 2005, No. 105 (Adj. Sess.), § 1.)
§ 4328 Terms of office inconsistent with charter provisions
When a charter of a municipality exists having terms respecting the appointment and authority of municipal officials, relating to their activities under this chapter, which terms are inconsistent with this chapter, those terms of that charter shall prevail.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 116, § 4.)
Subchapter 3 Regional Planning Commissions
§ 4341 Creation of regional planning commissions
(a) A regional planning commission may be created at any time by the act of the voters or the legislative body of each of a number of contiguous municipalities, upon the written approval of the Agency of Commerce and Community Development. Approval of a designated region shall be based on whether the municipalities involved constitute a logical geographic and a coherent socioeconomic planning area. All municipalities within a designated region shall be considered members of the regional planning commission. For the purpose of a regional planning commission’s carrying out its duties and functions under State law, such a designated region shall be considered a political subdivision of the State.
(b) Two or more existing regional planning commissions may be merged to form a single commission by act of the legislative bodies in a majority of the municipalities in each of the merging regions.
(c) A municipality may move from one regional planning commission to another regional planning commission on terms and conditions approved by the Secretary of Commerce and Community Development.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 1, eff. April 11, 1972; 1981, No. 132 (Adj. Sess.), § 4; 1987, No. 200 (Adj. Sess.), § 19, eff. July 1, 1989; 1995, No. 190 (Adj. Sess.), § 1(a); 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; 2009, No. 156 (Adj. Sess.), § F.11, eff. June 3, 2010; 2013, No. 36, § 3.)
§ 4341a Performance grants for regional planning service
(a) The Secretary of Commerce and Community Development shall negotiate and issue performance grants to regional planning commissions, or to regional planning commissions and regional development corporations in the case of a joint grant, to provide regional planning services.
(b) A performance grant shall address how the regional planning commission, or regional planning commission and regional development corporation jointly, will improve results and achieve savings compared with the current regional service delivery system, which may include:
(1) a proposal without change in the makeup or change of the area served;
(2) a joint proposal to provide different services pursuant to a grant to one or more regional service providers;
(3) colocation with other local, regional, or State service providers;
(4) merger with one or more regional service providers;
(5) consolidation of administrative functions and additional operational efficiencies within the region; or
(6) such other cost-saving mechanisms as may be available.
(Added 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; amended 2015, No. 11, § 30; 2015, No. 157 (Adj. Sess.), § C.2, eff. July 1, 2017.)
§ 4342 Regional planning commissions; membership
A regional planning commission shall contain at least one representative appointed from each member municipality. All representatives may be compensated and reimbursed by their respective municipalities for necessary and reasonable expenses.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 2, eff. April 11, 1972; 1977, No. 158 (Adj. Sess.).)
§ 4343 Appointment, term, and vacancy; rules
(a) Representatives to a regional planning commission representing each participating municipality shall be appointed for a term and any vacancy filled by the legislative body of such municipality in the manner provided and for the terms established by the charter and bylaws of the regional planning commission. Regardless of regional planning commission bylaws, representatives to the commission shall serve at the pleasure of the legislative body. The legislative body may, by majority vote of the entire body, revoke a commission member’s appointment at any time.
(b) A regional planning commission may elect an executive board, consisting of not less than five nor more than nine members, to oversee the operations of the commission and implement the policies of the commission, and shall elect a chair and a secretary, and, at its organization meeting shall adopt, by a two-thirds vote of those representatives present and voting at such meeting, such rules and create and fill such other offices as it deems necessary or appropriate for the performance of its functions, including the number and qualification of members, terms of office, and provisions for municipal representation and voting.
(c) A regional planning commission may also have such other members, who may be elected or appointed in such manner as the regional planning commission may prescribe by its rules adopted pursuant to this section.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1981, No. 132 (Adj. Sess.), § 5, eff. July 1, 1982; 1989, No. 280 (Adj. Sess.), § 3b; 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010.)
§ 4344 Repealed
[Repealed]
2009, No. 146 (Adj. Sess.), § G5.
§ 4345 Optional powers and duties of regional planning commissions
Any regional planning commission created under this chapter may:
(1) Develop an inventory of the region’s fire and safety facilities; hospitals, rest homes, or other facilities for aging or disabled persons; correctional facilities; and emergency shelters; and work with regulated utilities, the Department of Public Service, the Department of Public Safety, potential developers of distributed power facilities, adjoining regional planning commissions, interested adjoining regional entities from adjoining states, and citizens of the region to propose and evaluate alternative sites for distributed power facilities that might provide uninterrupted local or regional power at least for identified critical service providers in time of extended national, statewide, or regional power disruption or other emergency.
(2)-(5) [Repealed.]
(6) Undertake studies and make recommendations on land development, urban renewal, transportation, economic, industrial, commercial, and social development, urban beautification and design improvements, historic and scenic preservation, State capital investment plans, and wetland protection.
(7) [Repealed.]
(8) Require of each municipality in its area and all State agencies such available information as relates to the work of the regional planning commission.
(9) In the performance of its functions, enter upon land, with prior approval of the landowner, to make examinations and surveys.
(10) Retain staff and consultant assistance in carrying out its duties and powers, and contract with one or more persons to provide administrative, clerical, information technology, human resources, or related functions.
(11) Undertake comprehensive planning, including related preliminary planning, State capital investment plans, and engineering studies.
(12) Carry out, with the cooperation of municipalities within the region, economic development programs for the appropriate development, improvement, protection, and preservation of the region’s physical and human resources.
(13) Provide planning, training, and development services to local and regional communities and assist communities in evaluating economic conditions and prepare for economic growth and stability.
(14) Gather economic and demographic information concerning the area served.
(15) Assist existing business and industry, encourage the development and growth of small business, and to attract industry and commerce.
(16) Include in its charter and bylaws adopted pursuant to section 4343 of this chapter the power to:
(A) Acquire and dispose of a fee simple or lesser interest in real property through purchase, lease, grant, gift, bequest, or devise for the purpose of fulfilling its duties pursuant to this section and section 4345a of this title.
(B) Borrow money and incur indebtedness for the purposes of purchasing or leasing property for office space, establish and administer a revolving loan fund, or establish a line of credit, if approved by a two-thirds vote of those representatives to the regional planning commission present and voting at a meeting to approve such action. Any obligation incurred under this subdivision (B):
(i) shall not encumber the grand list or any property of a member municipality; and
(ii) in the case of a purchase, shall pledge the property to be purchased as collateral and shall not exceed the fair market value of such property.
(C) At the request of one or more member municipalities, act as an escrow agent and hold funds related to a municipal capital project or a project subject to a municipal land use permit in an escrow account, including taxes to be paid by the project, fines, and developer fees. Funds so held shall be segregated in a special account for each project on the books of the regional planning commission and, within each project account, by municipality. However, this subdivision (C) shall not confer authority on a regional planning commission to hold tax increment revenues received from a tax increment financing district under chapter 53, subchapter 5 of this title.
(D) Enter into contracts with public and private entities, including the State of Vermont and the federal government to provide regional planning services and fulfill its duties pursuant to this section and section 4345a of this title.
(E) Invest funds held in reserve in any security or investment that is prudent under the Uniform Prudent Management of Institutional Funds Act. This subdivision (E) only shall apply to funds whose investment is not otherwise restricted by State or federal law; the terms of a grant, gift, or devise; or the terms of a contract or service agreement formed under this chapter.
(17) Perform such other acts or functions as it may deem necessary or appropriate to fulfill the duties and obligations imposed by, and the intent and purposes of, this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 3, eff. April 11, 1972; 1979, No. 174 (Adj. Sess.), § 5; 1981, No. 132 (Adj. Sess.), § 6; 1985, No. 188 (Adj. Sess.), § 8; 1987, No. 200 (Adj. Sess.), § 20, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 3; 2005, No. 208 (Adj. Sess.), § 9; 2009, No. 146 (Adj. Sess.), § G5; 2011, No. 104 (Adj. Sess.), § 30, eff. May 7, 2012; 2013, No. 36, § 1; 2015, No. 174 (Adj. Sess.), § 3; 2017, No. 123 (Adj. Sess.), § 2, eff. May 3, 2018.)
§ 4345a Duties of regional planning commissions
A regional planning commission created under this chapter shall:
(1) Promote the mutual cooperation of its municipalities and assist and advise municipalities, compacts, and authorities within the region to facilitate economic development programs for the appropriate development, improvement, protection, and preservation of the region’s physical and human resources.
(2) Advise municipal governing bodies with respect to public financing.
(3) Provide technical and legal assistance to municipalities in the preparation and maintenance of plans, capacity studies, and bylaws and in related implementation activities.
(4) Cooperate with the planning, legislative, or executive authorities of neighboring states, regions, counties, or municipalities to promote coordination of planning for, conservation, and development of the region and adjoining or neighboring territory.
(5) Prepare a regional plan and amendments that are consistent with the goals established in section 4302 of this title, and compatible with approved municipal and adjoining regional plans. When preparing a regional plan, the regional planning commission shall:
(A) Develop and carry out a process that will encourage and enable widespread citizen involvement and meaningful participation, as defined in 3 V.S.A. § 6002.
(B) Develop a regional data base that is compatible with, useful to, and shared with the geographic information system established under 3 V.S.A. § 20.
(C) Conduct capacity studies;.
(D) Identify areas of regional significance. Such areas may be, but are not limited to, historic sites, earth resources, rare and irreplaceable natural areas, recreation areas, and scenic areas.
(E) Consider the potential environmental benefits and environmental burdens, as defined in 3 V.S.A. § 6002, of the proposed plan.
(F) Consider the probable social and economic benefits and consequences of the proposed plan.
(G) Prepare a report explaining how the regional plan is consistent with the goals established in section 4302 of this title.
(6) Prepare implementation guidelines that will assist municipalities and the regional commission in developing a planning process that will attain, within a reasonable time, consistency with the goals established in section 4302 of this title. Guidelines, which may be revised at any time, shall be prepared initially by July 1, 1989.
(7) Prepare, in conjunction with the Commissioner of Housing and Community Development, guidelines for the provision of affordable housing in the region, share information developed with respect to affordable housing with the municipalities in the region and with the Commissioner of Housing and Community Development, and consult with the Commissioner when developing the housing element of the regional plan.
(8) Confirm municipal planning efforts, where warranted, as required under section 4350 of this title, and provide town clerks of the region with notice of confirmation.
(9) At least every eight years, review the compatibility of municipal plans, and if the regional planning commission finds that growth in a municipality without an approved plan is adversely affecting an adjoining municipality, it shall notify the legislative body of both municipalities of that fact and shall urge that the municipal planning be undertaken to mitigate those adverse effects. If, within six months of receipt of this notice, the municipality creating the adverse effects does not have an approved municipal plan, the regional commission shall adopt appropriate amendments to the regional plan as it may deem appropriate to mitigate those adverse effects.
(10) Develop strategies specifically designed to assist municipalities in defining and managing growth and development that have cumulative impacts.
(11) Review proposed State capital expenditures prepared pursuant to 32 V.S.A. chapter 5 and the Transportation Program prepared pursuant to 19 V.S.A. chapter 1 for compatibility and consistency with regional plans and submit comments to the Secretaries of Transportation and Administration and the legislative committees of jurisdiction.
(12) Assist municipalities to review proposed State capital expenditures for compatibility with municipal plans.
(13) Appear before District Environmental Commissions to aid them in making a determination as to the conformance of developments and subdivisions with the criteria of 10 V.S.A. § 6086.
(14) With respect to proceedings under 30 V.S.A. § 248:
(A) have the right to appear and participate; and
(B) appear before the Public Utility Commission to aid in making determinations under that statute when requested by the Commission.
(15) Hold public hearings.
(16) Before requesting the services of a mediator with respect to a conflict that has arisen between adopted or proposed plans of two or more regions or two or more municipalities located in different regions, appoint a joint interregional commission, in cooperation with other affected regional commissions, for the purpose of negotiating differences.
(17) As part of its regional plan, define a substantial regional impact, as the term may be used with respect to its region. This definition shall be given substantial deference, where relevant, in State regulatory proceedings.
(18) If a municipality requests the assistance of the regional planning commission in coordinating the way that its plan addresses projects of substantial regional impact with the way those projects are addressed by its neighbors’ planning efforts, the regional planning commission shall convene an ad hoc working group to address the issue. The working group shall be composed of representatives of all municipalities likely to be affected by the plan in question, regardless of whether or not they belong to the same region. With the assistance of a facilitator provided by the regional planning commission, the ad hoc working group will attempt to develop a proposed consensus with respect to projects of substantial regional impact. If a proposed consensus is developed, the results of the consensus will be reported to the planning commissions and legislative bodies represented.
(19) Undertake studies and make recommendations on the conservation of energy and the development of renewable energy resources.
(20) If designated as a clean water service provider under 10 V.S.A. § 924, provide for the identification, prioritization, development, construction, inspection, verification, operation, and maintenance of clean water projects in the basin assigned to the regional planning commission in accordance with the requirements of 10 V.S.A. chapter 37, subchapter 5.
(Added 1987, No. 200 (Adj. Sess.), § 21, eff. July 1, 1989; amended 1989, No. 280 (Adj. Sess.), § 4; 2003, No. 42, § 2, eff. May 27, 2003; 2009, No. 146 (Adj. Sess.), § G5; 2015, No. 174 (Adj. Sess.), § 4; 2019, No. 76, § 5; 2023, No. 181 (Adj. Sess.), § 46, eff. June 17, 2024.)
§ 4345b Intermunicipal service agreements
(a)(1) Prior to exercising the authority granted under this section, a regional planning commission shall:
(A) draft bylaws specifying the process for entering into, method of withdrawal from, and method of terminating service agreements with municipalities; and
(B) hold one or more public hearings within the region to hear from interested parties and citizens regarding the draft bylaws.
(2) At least 30 days prior to any hearing required under this subsection, notice of the time and place and a copy of the draft bylaws, with a request for comments, shall be delivered to the chair of the legislative body of each municipality within the region, which may be done electronically, provided the sender has proof of receipt. The regional planning commission shall make copies available to any individual or organization requesting a copy.
(3) The regional planning commission may make revisions to the draft bylaws at any time prior to adoption of the bylaws. If revisions are made to the draft bylaws, the regional planning commission shall hold a final hearing and shall deliver notice as required in subdivision (2) of this subsection.
(b)(1) The draft bylaws required under subsection (a) of this section shall be adopted by a vote of at least 67 percent of the commissioners of the regional planning commission in accordance with the voting procedures of the regional planning commission.
(2) The draft bylaws shall be considered duly adopted and shall take effect 35 days after a vote required under this subsection, unless, within 35 days of the date of adoption, the regional planning commission receives certification from the legislative bodies of a majority of the municipalities in the region vetoing the proposed bylaws. In such case, the bylaws shall be deemed repealed.
(c) Upon adoption of the bylaws under subsection (b) of this section, a regional planning commission may:
(1) promote cooperative arrangements and coordinate, implement, and administer service agreements among municipalities, including arrangements and action with respect to planning, community development, joint purchasing, intermunicipal services, infrastructure, and related activities; and
(2) exercise any power, privilege, or authority, as defined within a service agreement under subsection (d) of this section, capable of exercise by a municipality as necessary or desirable for dealing with problems of local or regional concern.
(d)(1) In exercising the powers set forth in subsection (c) of this section, a regional planning commission shall enter into a service agreement with one or more municipalities.
(2) Participation by a municipality shall be voluntary and only valid upon appropriate action by the legislative body of the municipality. To become effective, a service agreement shall be ratified by the regional planning commission and the legislative bodies of the municipalities who are a party to the service agreement.
(3) A service agreement shall describe the services to be provided and the amount of funds payable by each municipality that is a party to the service agreement. Service of personnel, use of equipment and office space, and other necessary services may be accepted from municipalities as part of their financial support.
(4) Any modification to a service agreement shall not become effective unless approved by the legislative body of the municipalities who are a party to the service agreement.
(e) A regional planning commission shall not have the following powers under this section:
(1) essential legislative functions;
(2) taxing authority; or
(3) eminent domain.
(f)(1) Funds provided for regional planning under section 4341a or 4346 of this chapter shall not be used to provide services under a service agreement without prior written authorization from the State agency or other entity providing the funds.
(2) A commission shall not use municipal funds or grants provided for regional planning services under this chapter to cover the costs of providing services under any service agreement under this section.
(Added 2015, No. 89 (Adj. Sess.), § 1; amended 2017, No. 197 (Adj. Sess.), § 11.)
§ 4346 Appropriations
Regional planning commissions may apply for, receive, and expend monies from any source, public or private, including grants, loans, and funds made available by the participating municipalities, and by an agency or department of the State of Vermont, out of State funds appropriated to that agency or department for this purpose. Notwithstanding the provisions of any municipal charter, any municipality may appropriate and expend funds to and for regional planning commissions either by the authorization of its voters or by incorporating such amount as a line item in their administrative budget.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 4, eff. April 11, 1972; 1995, No. 190 (Adj. Sess.), § 1(a); 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; 2013, No. 36, § 2.)
§ 4347 Purposes of regional plan
A regional plan shall be made with the general purpose of guiding and accomplishing a coordinated, efficient, equitable, and economic development of the region that will, in accordance with the present and future needs and resources, best promote the health, safety, order, convenience, prosperity, and welfare of current and future inhabitants as well as efficiency and economy in the process of development. This general purpose includes recommending a distribution of population and of the uses of the land for urbanization, trade, industry, habitation, recreation, agriculture, forestry, and other uses as will tend to:
(1) create conditions favorable to transportation, health, safety, civic activities, and educational and cultural opportunities;
(2) reduce the wastes of financial, energy, and human resources that result from either excessive congestion or excessive scattering of population;
(3) promote an efficient and economic utilization of drainage, energy, sanitary, and other facilities and resources;
(4) promote the conservation of the supply of food, water, energy, and minerals;
(5) promote the production of food and fiber resources and the reasonable use of mineral, water, and renewable energy resources;
(6) promote the development of housing suitable to the needs of the region and its communities; and
(7) help communities equitably build resilience to address the effects of climate change through mitigation and adaptation consistent with the Vermont Climate Action Plan adopted pursuant to 10 V.S.A. § 592 and 3 V.S.A. chapter 72.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1979, No. 174 (Adj. Sess.), § 6; 1987, No. 200 (Adj. Sess.), §§ 22, 23, eff. July 1, 1989; 2023, No. 181 (Adj. Sess.), § 47, eff. June 17, 2024.)
§ 4348 Adoption and amendment of regional plan
(a) A regional planning commission shall adopt a regional plan. Any plan for a region, and any amendment, shall be prepared by the regional planning commission. At the outset of the planning process and throughout the process, regional planning commissions shall solicit the participation of each of their member municipalities, local citizens, and organizations by holding informal working sessions that suit the needs of local people. The purpose of these working sessions is to allow for meaningful participation as defined in 3 V.S.A. § 6002, provide consistent information about new statutory requirements related to the regional plan, explain the reasons for new requirements, and gather information to be used in the development of the regional plan and future land use element.
(b) 60 days prior to holding the first public hearing on a regional plan, a regional planning commission shall submit a draft regional plan to the Land Use Review Board review and comments related to conformance of the draft with sections 4302 and 4348a of this title and chapter 139 of this title. The Board shall coordinate with other State agencies and respond within 60 days unless more time is granted by the regional planning commission.
(c) The regional planning commission shall hold two or more public hearings within the region after public notice on any proposed plan or amendment. The minimum number of required public hearings may be specified within the bylaws of the regional planning commission.
(d)(1) At least 30 days prior to the first hearing, a copy of the proposed plan or amendment, a report documenting conformance with the goals established in section 4302 of this chapter and the plan elements established in section 4348a of this chapter, and a description of any changes to the Regional Future Land Use Map with a request for general comments and for specific comments with respect to the extent to which the plan or amendment is consistent with the goals established in section 4302 of this title, shall be delivered physically or electronically with proof of receipt or sent by certified mail, return receipt requested, to each of the following:
(A) the chair of the legislative body, or municipal manager, if any, of each municipality within the region;
(B) the executive director of each abutting regional planning commission;
(C) the Department of Housing and Community Development within the Agency of Commerce and Community Development and the Community Investment Board for a formal review and comment;
(D) business, conservation, low-income advocacy, and other community or interest groups or organizations that have requested notice in writing prior to the date the hearing is warned; and
(E) the Agency of Natural Resources; the Agency of Agriculture, Food and Markets; the Agency of Transportation; the Department of Public Service; the Department of Public Safety’s Division of Emergency Management; and the Land Use Review Board.
(2) At least 30 days prior to the first hearing, the regional planning commission shall provide each of its member municipalities with a written description of map changes within the municipality, a municipality-wide map showing old versus new areas with labels, and information about the new Tier structure under 10 V.S.A. chapter 151, including how to obtain Tier 1A or 1B status, and the process for updating designated area boundaries.
(e) Any of the foregoing bodies, or their representatives, may submit comments on the proposed regional plan or amendment to the regional planning commission, and may appear and be heard in any proceeding with respect to the adoption of the proposed plan or amendment.
(f) The regional planning commission may make revisions to the proposed plan or amendment at any time not less than 30 days prior to the final public hearing held under this section. If the proposal is changed, a copy of the proposed change shall be delivered physically; electronically with proof of receipt; or by certified mail, return receipt requested, to the chair of the legislative body of each municipality within the region and to any individual or organization requesting a copy at least 30 days prior to the final hearing.
(g) A regional plan or amendment shall be adopted by not less than a 60 percent vote of the commissioners representing municipalities, in accordance with the bylaws of the regional planning commission.
(h)(1) Within 15 days following adoption, a regional planning commission shall submit its regionally adopted regional plan to the Land Use Review Board for a determination of regional plan compliance with a report documenting conformance with the goals established in section 4302 of this chapter and the plan elements established in section 4348a of this chapter and a description of any changes to the regional plan future land use map.
(2) The Land Use Review Board shall hold a public hearing within 60 days after receiving a plan and provide notice of it at least 15 days in advance by direct mail or electronically with proof of receipt to the requesting regional planning commission, posting on the website of the Land Use Review Board, and publication in a newspaper of general circulation in the region affected. The regional planning commission shall notify its municipalities and post on its website the public hearing notice.
(3) The Land Use Review Board shall issue the determination in writing within 15 days after the close of the hearing on the plan. If the determination is affirmative, a copy of the determination shall be provided to the regional planning commission and the Community Investment Board. If the determination is negative, the Land Use Review Board shall state the reasons for denial in writing and, if appropriate, suggest acceptable modifications. Submissions for a new determination that follow a negative determination shall receive a new determination within 45 days.
(4) The Land Use Review Board’s affirmative determination shall be based upon finding the regional plan meets the following requirements:
(A) Consistency with the State planning goals as described in section 4302 of this chapter with consistency determined in the manner described under subdivision 4302(f)(1) of this chapter.
(B) Consistency with the purposes of the regional plan established in section 4347 of chapter.
(C) Consistency with the regional plan elements as described in section 4348a of this chapter, except that the requirements of section 4352 of this chapter related to enhanced energy planning shall be the under the sole authority of the Department of Public Service.
(D) Compatibility with adjacent regional planning areas in the manner described under subdivision 4302(f)(2) of this chapter.
(i) Objections of interested parties.
(1) An interested party who has participated in the regional plan adoption process may object to the approval of the plan or approval of the future land use maps by the Land Use Review Board within 15 days following plan adoption by the regional planning commission. Participation is defined as providing written or oral comments stating objections for consideration at a public hearing held by the regional planning commission. Objections shall be submitted using a form provided by the Land Use Review Board.
(2) As used in this section, an “interested party” means any one of the following:
(A) Any 20 persons by signed petition who own property or reside within the region. The petition must designate one person to serve as the representative of the petitioners regarding all matters related to the objection. The designated representative shall have participated in the regional plan adoption process.
(B) A party entitled to notice under subsection (d) of this section.
(3) Any objection under this section shall be limited to the question of whether the regional plan is consistent with the regional plan elements and future land use areas as described in section 4348a of this title. The requirements of section 4352 of this title related to enhanced energy planning shall be under the sole authority of the Department of Public Service and shall not be reviewed by the Land Use Review Board.
(4) The Land Use Review Board shall hear any objections of regional plan adoption concurrently with regional plan review under subsection (h) of this section and 10 V.S.A. § 6033. The Land Use Review Board decision of approval of a regional plan shall expressly evaluate any objections and state the reasons for their decisions in writing. If applicable, the decision to uphold an objection shall suggest modifications to the regional plan.
(j) Minor amendments to regional plan future land use map. A regional planning commission may submit a request for a minor amendment to boundaries of a future land use area for consideration by the Land Use Review Board with a letter of support from the municipality. The request may only be submitted after an affirmative vote of the municipal legislative body and the regional planning commission board. The Land Use Review Board, after consultation with the Community Investment Board and the regional planning commissions, shall provide guidance about what constitutes a minor amendment. Minor amendments may include any change to a future land use area consisting of fewer than 10 acres. A minor amendment to a future land use area shall not require an amendment to a regional plan and shall be included in the next iteration of the regional plan. The Board may adopt rules to implement this section.
(k) An affirmative determination of regional plan compliance issued pursuant to this section shall remain in effect until the end of the period for expiration or readoption of the plan to which it applies.
(l) Regional planning commissions shall be provided up to 18 months from a negative determination by the Land Use Review Board to obtain an affirmative determination of regional plan compliance. If a regional planning commission is unable to obtain affirmative determination of regional plan compliance, the plan shall be considered unapproved and member municipalities shall lose any associated benefits related to designations, such as Act 250 exemptions or eligibility for State infrastructure investments.
(m) Upon approval by the Land Use Review Board, the plan shall be considered duly adopted, shall take effect, and is not appealable. The plan shall be immediately submitted to the entities listed in subsection (d) of this section.
(n) Regional plans may be reviewed from time to time and may be amended in the light of new developments and changed conditions affecting the region.
(o) In proceedings under 10 V.S.A. chapter 151, 10 V.S.A. chapter 159, and 30 V.S.A. § 248, in which the provisions of a regional plan or a municipal plan are relevant to the determination of any issue in those proceedings:
(1) the provisions of the regional plan shall be given effect to the extent that they are not in conflict with the provisions of a duly adopted municipal plan; and
(2) to the extent that such a conflict exists, the regional plan shall be given effect if it is demonstrated that the project under consideration in the proceedings would have a substantial regional impact as determined by the definition in the regional plan.
(p) Regional planning commissions shall adopt a regional plan in conformance with this title on or before December 31, 2026.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 5, eff. April 11, 1972; 1979, No. 174 (Adj. Sess.), § 7; 1981, No. 132 (Adj. Sess.), § 7; 1987, No. 200 (Adj. Sess.), § 24, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 4a; 1989, No. 286 (Adj. Sess.), § 11, eff. June 22, 1990; 1995, No. 190 (Adj. Sess.), § 1(a); 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; 2015, No. 64, § 28; 2017, No. 197 (Adj. Sess.), § 12; 2023, No. 181 (Adj. Sess.), § 48, eff. June 17, 2024.)
§ 4348a Elements of a regional plan
(a) A regional plan shall be consistent with the goals established in section 4302 of this title and shall include the following:
(1) A statement of basic policies of the region to guide the future growth and development of land and of public services and facilities, and to protect the environment.
(2) A natural resources and working lands element, which shall consist of a map or maps and policies, based on ecosystem function, consistent with Vermont Conservation Design, support compact centers surrounded by rural and working lands, and that:
(A) Indicates those areas of significant natural resources, including existing and proposed for forests, wetlands, vernal pools, rare and irreplaceable natural areas, floodplains, river corridors, recreation, agriculture using the agricultural lands identification process established in 6 V.S.A. § 8, residence, commerce, industry, public, and semipublic uses, open spaces, areas reserved for flood plain, forest blocks, habitat connectors, recreation areas and recreational trails, and areas identified by the State, regional planning commissions, or municipalities that require special consideration for aquifer protection; for wetland protection; for the maintenance of forest blocks, wildlife habitat, and habitat connectors; or for other conservation purposes.
(B) Indicates those areas that have the potential to sustain agriculture and recommendations for maintaining them that may include transfer of development rights, acquisition of development rights, or farmer assistance programs.
(C) Indicates those areas that are important as forest blocks and habitat connectors and plans for land development in those areas to minimize forest fragmentation and promote the health, viability, and ecological function of forests. A plan may include specific policies to encourage the active management of those areas for wildlife habitat, water quality, timber production, recreation, or other values or functions identified by the regional planning commission.
(D) Encourages preservation of rare and irreplaceable natural areas, scenic and historic features and resources.
(E) Encourages protection and improvement of the quality of waters of the State to be used in the development and furtherance of the applicable basin plans established by the Secretary of Natural Resources under 10 V.S.A. § 1253.
(3) An energy element, including an analysis of resources, needs, scarcities, costs, and problems within the region across all energy sectors, including electric, thermal, and transportation; a statement of policy on the conservation and efficient use of energy and the development and siting of renewable energy resources; a statement of policy on patterns and densities of land use likely to result in conservation of energy; and an identification of potential areas for the development and siting of renewable energy resources and areas that are unsuitable for siting those resources or particular categories or sizes of those resources.
(4) A transportation element consisting of a statement of present and prospective transportation and circulation facilities, and a map showing existing and proposed highways, including limited access highways, and streets by type and character of improvement, and where pertinent, anticipated points of congestion, parking facilities, transit routes, terminals, bicycle paths and trails, scenic roads, airports, railroads and port facilities, and other similar facilities or uses, and recommendations to meet future needs for such facilities, with indications of priorities of need, costs, and method of financing.
(5) A utility and facility element, consisting of a map and statement of present and prospective local and regional community facilities and public utilities, whether publicly or privately owned, showing existing and proposed educational, recreational and other public sites, buildings and facilities, including public schools, State office buildings, hospitals, libraries, power generating plants and transmission lines, wireless telecommunications facilities and ancillary improvements, water supply, sewage disposal, refuse disposal, storm drainage, and other similar facilities and activities, and recommendations to meet future needs for those facilities, with indications of priority of need.
(6) [Repealed.]
(7) A program for the implementation of the regional plan’s objectives, including a recommended investment strategy for regional facilities and services based on a capacity study of the elements in this section.
(8) A statement indicating how the regional plan relates to development trends, needs, and plans and regional plans for adjacent municipalities and regions.
(9) A housing element that identifies the regional and community-level need for housing that will result in an adequate supply of building code and energy code compliant homes where most households spend not more than 30 percent of their income on housing and not more than 15 percent on transportation. To establish housing needs, the Department of Housing and Community Development shall publish statewide and regional housing targets or ranges as part of the Statewide Housing Needs Assessment. The regional planning commission shall consult the Statewide Housing Needs Assessment; current and expected demographic data; the current location, quality, types, and cost of housing; other local studies related to housing needs; and data gathered pursuant to subsection 4382(c) of this title. If no such data has been gathered, the regional planning commission shall gather it. The regional planning commission’s assessment shall estimate the total needed housing investments in terms of price, quality, unit size or type, and zoning district as applicable and shall disaggregate regional housing targets or ranges by municipality. The housing element shall include a set of recommended actions to satisfy the established needs.
(10) An economic development element that describes present economic conditions and the location, type, and scale of desired economic development, and identifies policies, projects, and programs necessary to foster economic growth.
(11)(A) A flood resilience element that:
(i) identifies flood hazard and fluvial erosion hazard areas, based on river corridor maps provided by the Secretary of Natural Resources pursuant to 10 V.S.A. § 1428(a) or maps recommended by the Secretary, and designates those areas to be protected, including floodplains, river corridors, land adjacent to streams, wetlands, and upland forests, to reduce the risk of flood damage to infrastructure and improved property; and
(ii) recommends policies and strategies to protect the areas identified and designated under this subdivision (A) and to mitigate risks to public safety, critical infrastructure, historic structures, and public investments.
(B) A flood resilience element may reference an existing regional hazard mitigation plan approved under 44 C.F.R. § 201.6.
(12) A future land use element, based upon the elements in this section, that sets forth the present and prospective location, amount, intensity, and character of such land uses in relation to the provision of necessary community facilities and services and that consists of a map delineating future land use area boundaries for the land uses in subdivisions (A)–(J) of this subdivision (12) as appropriate and any other special land use category the regional planning commission deems necessary; descriptions of intended future land uses; and policies intended to support the implementation of the future land use element using the following land use categories:
(A) Downtown or village centers. These areas are the mixed-use centers bringing together community economic activity and civic assets. They include downtowns, villages, and new town centers previously designated under chapter 76A and downtowns and village centers seeking benefits under the Community Investment Program under section 5804 of this title. The downtown or village centers are the traditional and historic central business and civic centers within planned growth areas, village areas, or may stand alone. Village centers are not required to have public water, wastewater, zoning, or subdivision bylaws.
(B) Planned growth areas. These areas include the high-density existing settlement and future growth areas with high concentrations of population, housing, and employment in each region and town, as appropriate. They include a mix of historic and nonhistoric commercial, residential, and civic or cultural sites with active streetscapes, supported by land development regulations; public water or wastewater, or both; and multimodal transportation systems. These areas include new town centers, downtowns, village centers, growth centers, and neighborhood development areas previously designated under chapter 76A of this title. These areas should generally meet the smart growth principles definition in chapter 139 of this title and the following criteria:
(i) The municipality has a duly adopted and approved plan and a planning process that is confirmed in accordance with section 4350 of this title and has adopted bylaws and regulations in accordance with sections 4414, 4418, and 4442 of this title.
(ii) This area is served by public water or wastewater infrastructure.
(iii) The area is generally within walking distance from the municipality’s or an adjacent municipality’s downtown, village center, new town center, or growth center.
(iv) The area excludes identified flood hazard and river corridor areas, except those areas containing preexisting development in areas suitable for infill development as defined in section 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.
(v) The municipal plan indicates that this area is intended for higher-density residential and mixed-use development.
(vi) The area provides for housing that meets the needs of a diversity of social and income groups in the community.
(vii) The area is served by planned or existing transportation infrastructure that conforms with “complete streets” principles as described under 19 V.S.A. chapter 24 and establishes pedestrian access directly to the downtown, village center, or new town center. Planned transportation infrastructure includes those investments included in the municipality’s capital improvement program pursuant to section 4430 of this title.
(C) Village areas. These areas include the traditional settlement area or a proposed new settlement area, typically composed of a cohesive mix of residential, civic, religious, commercial, and mixed-use buildings, arranged along a main street and intersecting streets that are within walking distance for residents who live within and surrounding the core. These areas include existing village center designations and similar areas statewide, but this area is larger than the village center designation. Village areas shall meet the following criteria:
(i) The municipality has a duly adopted and approved plan and a planning process that is confirmed in accordance with section 4350 of this title.
(ii) The municipality has adopted bylaws and regulations in accordance with sections 4414, 4418, and 4442 of this title.
(iii) Unless the municipality has adopted flood hazard and river corridor bylaws, applicable to the entire municipality, that are consistent with the standards established pursuant to 10 V.S.A. § 755b (flood hazard) and 10 V.S.A. § 1428(b) (river corridor), the area excludes identified flood hazard and river corridors, except those areas containing preexisting development in areas suitable for infill development as defined in 29-201 of the Vermont Flood Hazard Area and River Corridor Rule.
(iv) The municipality has either municipal water or wastewater. If no public wastewater is available, the area must have soils that are adequate for wastewater disposal.
(v) The area has some opportunity for infill development or new development areas where the village can grow and be flood resilient.
(D) Transition or infill area. These areas include areas of existing or planned commercial, office, mixed-use development, or residential uses either adjacent to a planned growth or village area or a new stand-alone transition or infill area and served by, or planned for, public water or wastewater, or both. The intent of this land use category is to transform these areas into higher-density, mixed-use settlements, or residential neighborhoods through infill and redevelopment or new development. New commercial linear strip development is not allowed as to prevent it negatively impacting the economic vitality of commercial areas in the adjacent or nearby planned growth or village area. This area could also include adjacent greenfields safer from flooding and planned for future growth.
(E) Resource-based recreation areas. These areas include large-scale resource-based recreational facilities, often concentrated around ski resorts, lakeshores, or concentrated trail networks, that may provide infrastructure, jobs, or housing to support recreational activities.
(F) Enterprise areas. These areas include locations of high economic activity and employment that are not adjacent to planned growth areas. These include industrial parks, areas of natural resource extraction, or other commercial uses that involve larger land areas. Enterprise areas typically have ready access to water supply, sewage disposal, electricity, and freight transportation networks.
(G) Hamlets. Small historic clusters of homes and may include a school, place of worship, store, or other public buildings not planned for significant growth; no public water supply or wastewater systems; and mostly focused along one or two roads. These may be depicted as points on the future land use map.
(H) Rural; general. These areas include areas that promote the preservation of Vermont’s traditional working landscape and natural area features. They allow for low-density residential and some limited commercial development that is compatible with productive lands and natural areas. This may also include an area that a municipality is planning to make more rural than it is currently.
(I) Rural; agricultural and forestry. These areas include blocks of forest or farmland that sustain resource industries, provide critical wildlife habitat and movement, outdoor recreation, flood storage, aquifer recharge, and scenic beauty, and contribute to economic well-being and quality of life. Development in these areas should be carefully managed to promote the working landscape and rural economy, and address regional goals, while protecting the agricultural and forest resource value.
(J) Rural; conservation. These are areas of significant natural resources, identified by regional planning commissions or municipalities based upon existing Agency of Natural Resources mapping that require special consideration for aquifer protection; for wetland protection; for the maintenance of forest blocks, wildlife habitat, and habitat connectors; or for other conservation purposes. The mapping of these areas and accompanying policies are intended to help meet requirements of 10 V.S.A. chapter 89. Any portion of this area that is approved by the LURB as having Tier 3 area status shall be identified on the future land use map as an overlay upon approval.
(b) The various elements and statements shall be correlated with the land use element and with each other. The maps called for by this section may be incorporated on one or more maps, and may be referred to in each separate statement called for by this section.
(c) The regional plan future land use map shall delineate areas within the regional planning commission’s member municipalities that are eligible to receive designation benefits as centers and neighborhoods when the future land use map is approved by the Land Use Review Board per 10 V.S.A. § 6033. The areas eligible for designation as centers shall be identified on the regional plan future land use map as regional downtown centers and village centers. The areas eligible for designation as neighborhoods shall be identified on the regional plan future land use map as planned growth areas and village areas in a manner consistent with this section and chapter 139 of this title. This methodology shall include all approved designated downtowns, villages, new town centers, neighborhood development areas, and growth centers existing on December 31, 2025, unless the subject member municipality requests otherwise.
(d) With the exception of preexisting, nonconforming designations approved prior to the establishment of the program, the areas eligible for designation benefits upon the Land Use Review Board’s approval of the regional plan future land use map for designation as a center shall not include development that is disconnected from a downtown or village center and that lacks an existing or planned pedestrian connection to the center via a complete street.
(e) The Vermont Association of Planning and Development Agencies shall develop, maintain, and update standard methodology and process for the mapping of areas eligible for Tier 1B status under 10 V.S.A. § 6033 and designation under chapter 139 of this title. The methodology shall be issued on or before December 31, 2024, in consultation with the Department of Housing and Community Development and Land Use Review Board.
(Added 1981, No. 132 (Adj. Sess.), § 7; amended 1985, No. 188 (Adj. Sess.), § 9; 1987, No. 200 (Adj. Sess.), §§ 26, 27, eff. July 1, 1989; 1997, No. 94 (Adj. Sess.), § 3, eff. April 15, 1998; 2011, No. 52, § 32, eff. July 1, 2012; 2013, No. 16, § 3, eff. July 1, 2014; 2013, No. 146 (Adj. Sess.), § 7, eff. May 27, 2014; 2015, No. 64, § 29; 2015, No. 171 (Adj. Sess.), § 16, eff. Jan. 1, 2018; 2015, No. 174 (Adj. Sess.), § 5; 2023, No. 47, § 11, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 49, eff. June 17, 2024.)
§ 4348b Readoption of regional plans
(a) Unless they are readopted, all regional plans, including all prior amendments, shall expire every eight years.
(b)(1) A regional plan that has expired or is about to expire may be readopted as provided under section 4348 of this title for the adoption of a regional plan or amendment. Prior to any readoption, the regional planning commission shall prepare an assessment report which shall be submitted to the Agency of Commerce and Community Development and the municipalities within the region. The assessment report may include:
(A) the extent to which the plan has been implemented since adoption or readoption;
(B) an evaluation of the goals and policies and any amendments necessary due to changing conditions of the region;
(C) an evaluation of the land use element and any amendments necessary to reflect changes in land use within the region or changes to regional goals and policies;
(D) priorities for implementation in the next five years; and
(E) updates to information and data necessary to support goals and policies.
(2) The readopted plan shall remain in effect for the ensuing eight years unless earlier readopted.
(c) Upon the expiration of a regional plan under this section, the regional plan shall be of no further effect in any other proceeding.
(d) All regional plans that expire after July 1, 1991 shall be readopted to be consistent with planning goals and shall follow the review process referred to in 1988 Acts and Resolves No. 200.
(Added 1981, No. 132 (Adj. Sess.), § 8; amended 1987, No. 200 (Adj. Sess.), § 25, eff. July 1, 1989; 1989, No. 101, §§ 2, 3; 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; 2011, No. 52, § 30, eff. July 1, 2012.)
§ 4349 Regional plan; adoption by municipality
(a) If a regional planning commission prepares and adopts a regional plan, the regional plan or a portion thereof may then be adopted by the legislative body of any member municipality as its plan in accordance with subchapter 5 of this chapter.
(b) The legislative body of any municipality may designate the regional planning commission of a region of which such municipality is a member as the planning commission of such municipality, and, if so designated, the regional planning commission shall thereafter act as the planning commission of such municipality until a planning commission is created under section 4321 of this title or until such regional planning commission notifies such legislative body, in writing, that it no longer will so act.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968.)
§ 4350 Review and consultation regarding municipal planning effort
(a) A regional planning commission shall consult with its municipalities with respect to the municipalities’ planning efforts, ascertaining the municipalities’ needs as individual municipalities and as neighbors in a region, and identifying the assistance that ought to be provided by the regional planning commission. As a part of this consultation, the regional planning commission, after public notice, shall review the planning process of its member municipalities at least twice during an eight-year period, or more frequently on request of the municipality, and shall so confirm when a municipality:
(1) is engaged in a continuing planning process that, within a reasonable time, will result in a plan that is consistent with the goals contained in section 4302 of this title;
(2) is engaged in a process to implement its municipal plan, consistent with the program for implementation required under section 4382 of this title; and
(3) is maintaining its efforts to provide local funds for municipal and regional planning purposes.
(b)(1) As part of the consultation process, the commission shall consider whether a municipality has adopted a plan. In order to obtain or retain confirmation of the planning process, a municipality must have an approved plan. A regional planning commission shall review and approve plans of its member municipalities, when approval is requested and warranted. Each review shall include a public hearing which is noticed at least 15 days in advance by posting in the office of the municipal clerk and at least one public place within the municipality and by publication in a newspaper or newspapers of general publication in the region affected. The commission shall approve a plan if it finds that the plan:
(A) is consistent with the goals established in section 4302 of this title;
(B) is compatible with its regional plan;
(C) is compatible with approved plans of other municipalities in the region; and
(D) contains all the elements included in subdivisions 4382(a)(1)-(12) of this title.
(2) A commission shall give approval or disapproval to a municipal plan or amendment within two months of its receipt following a final hearing held pursuant to section 4385 of this title. The fact that the plan is approved after the deadline shall not invalidate the plan. If the commission disapproves the plan or amendment, it shall state its reasons in writing and, if appropriate, suggest acceptable modifications. Submissions for approval that follow a disapproval shall receive approval or disapproval within 45 days.
(3) The commission shall file any adopted plan or amendment with the Department of Housing and Community Development within two weeks of receipt from the municipality. Failure on the part of the commission to file the plan shall not invalidate the plan.
(c) In order to retain confirmation of the planning process, a municipality shall document that it has reviewed and is actively engaged in a process to implement its adopted plan.
(1) When assessing whether a municipality has been actively engaged in a process to implement its adopted plan, the regional planning commission shall consider the activities of local boards and commissions with regard to the preparation or adoption of bylaws and amendments; capital budgets and programs; supplemental plans; or other actions, programs, or measures undertaken or scheduled to implement the adopted plan. The regional planning commission shall also consider factors that may have hindered or delayed municipal implementation efforts.
(2) The consultation may include guidance by the regional planning commission with regard to resources and technical support available to the municipality to implement its adopted plan and recommendations by the regional planning commission for plan amendments and for updating the plan prior to readoption under section 4387 of this title.
(d) During the period of time when a municipal planning process is confirmed:
(1) The municipality’s plan will not be subject to review by the Commissioner of Housing and Community Development under section 4351 of this title.
(2) State agency plans adopted under 3 V.S.A. chapter 67 shall be compatible with the municipality’s approved plan.
(3) The municipality may levy impact fees on new development within its borders, according to the provisions of chapter 131 of this title.
(4) The municipality shall be eligible to receive additional funds from the municipal and regional planning fund.
(e) Confirmation and approval decisions under this section shall be made by majority vote of the commissioners representing municipalities, in accordance with the bylaws of the regional planning commission.
(Added 1987, No. 200 (Adj. Sess.), § 15, eff. July 1, 1989; amended 1989, No. 101, § 4; 1989, No. 280 (Adj. Sess.), § 5; 2003, No. 115 (Adj. Sess.), § 87; 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010; 2015, No. 90 (Adj. Sess.), § 1.)
§ 4351 Review by Commissioner of Housing and Community Development
(a) The Commissioner of Housing and Community Development shall establish guidelines for the provision of affordable housing by municipalities with plans that have not been approved under this chapter. These guidelines shall be consistent with goals established in section 4302 of this title.
(b) On a periodic basis, commencing in 1996, the Commissioner of Housing and Community Development, or a designee, shall review the planning process of municipalities that do not have approved plans, for compliance with the affordable housing criteria established under this section and shall issue a report to the municipality and to the regional planning commission. Each review shall include a public hearing which is noticed at least 15 days in advance by posting in the office of the municipal clerk and at least one public place within the municipality and by publication in a newspaper or newspapers of general publication in the region affected.
(Added 1987, No. 200 (Adj. Sess.), § 15a, eff. July 1, 1989; amended 1989, No. 101, § 5; 1989, No. 280 (Adj. Sess.), § 6; 2003, No. 115 (Adj. Sess.), § 88; 2009, No. 146 (Adj. Sess.), § G5, eff. June 1, 2010.)
§ 4352 Optional determination of energy compliance; enhanced energy planning
(a) Regional plan. A regional planning commission may submit its adopted regional plan to the Commissioner of Public Service appointed under 30 V.S.A. § 1 for a determination of energy compliance. The Commissioner shall issue an affirmative determination on finding that the regional plan meets the requirements of subsection (c) of this section and allows for the siting in the region of all types of renewable generation technologies.
(b) Municipal plan. If the Commissioner of Public Service has issued an affirmative determination of energy compliance for a regional plan that is in effect, a municipal legislative body within the region may submit its adopted municipal plan to the regional planning commission for issuance of a determination of energy compliance. The regional planning commission shall issue an affirmative determination, signed by the chair of the regional planning commission, on finding that the municipal plan meets the requirements of subsection (c) of this section and is consistent with the regional plan.
(c) Enhanced energy planning; requirements. To obtain an affirmative determination of energy compliance under this section, a plan must:
(1) in the case of a regional plan, include the energy element as described in subdivision 4348a(a)(3) of this title;
(2) in the case of a municipal plan, include an energy element that has the same components as described in subdivision 4348a(a)(3) of this title for a regional plan and be confirmed under section 4350 of this title;
(3) be consistent with the following, with consistency determined in the manner described under subdivision 4302(f)(1) of this title:
(A) Vermont’s greenhouse gas reduction goals under 10 V.S.A. § 578(a);
(B) Vermont’s 25 by 25 goal for renewable energy under 10 V.S.A. § 580;
(C) Vermont’s building efficiency goals under 10 V.S.A. § 581;
(D) State energy policy under 30 V.S.A. § 202a and the recommendations for regional and municipal energy planning pertaining to the efficient use of energy and the siting and development of renewable energy resources contained in the State energy plans adopted pursuant to 30 V.S.A. §§ 202 and 202b; and
(E) the distributed renewable generation and energy transformation categories of resources to meet the requirements of the Renewable Energy Standard under 30 V.S.A. §§ 8004 and 8005; and
(4) meet the standards for issuing a determination of energy compliance included in the State energy plans.
(d) State energy plans; recommendations; standards.
(1) The State energy plans shall include the recommendations for regional and municipal energy planning and the standards for issuing a determination of energy compliance described in subdivision (c)(3) of this section.
(2) The recommendations shall provide strategies and options for regional planning commissions and municipalities to employ in meeting the goals and policies contained in statutes listed in subdivision (c)(3) of this section.
(3) The standards shall consist of a list of criteria for issuing a determination of energy compliance that ensure consistency with the goals and policies contained in the statutes listed in subdivision (c)(3) of this section and the recommendations developed pursuant to this subsection.
(4) In developing standards and recommendations under this subsection, the Commissioner of Public Service shall consult with all persons identified under 30 V.S.A. § 202(d)(1); the Secretaries of Agriculture, Food and Markets, of Commerce and Community Development, of Natural Resources, and of Transportation; and other affected persons.
(5) The Commissioner of Public Service shall provide the Commissioner of Housing and Community Development with a copy of the recommendations and standards developed under this subsection for inclusion in the planning and land use manual prepared pursuant to section 4304 of this title.
(e) Process for issuing determinations of energy compliance. Review of whether to issue a determination of energy compliance under this section shall include a public hearing noticed at least 15 days in advance by direct mail or electronically with proof of receipt to the requesting regional planning commission or municipal legislative body, posting on the website of the entity from which the determination is requested, and publication in a newspaper of general publication in the region or municipality affected. The Commissioner or regional planning commission shall issue the determination in writing within two months after the receipt of a request for a determination. If the determination is negative, the Commissioner or regional planning commission shall state the reasons for denial in writing and, if appropriate, suggest acceptable modifications. Submissions for a new determination that follow a negative determination shall receive a new determination within 45 days.
(f) Appeal. A regional planning commission aggrieved by an act or decision of the Commissioner of Public Service under this section may appeal to the Land Use Review Board established under 10 V.S.A. chapter 151 within 30 days of the act or decision. The provisions of 10 V.S.A. § 6024 regarding assistance to the Board from other departments and agencies of the State shall apply to this subsection. The Board shall conduct a de novo hearing on the act or decision under appeal and shall proceed in accordance with the contested case requirements of the Vermont Administrative Procedure Act. The Board shall issue a final decision within 90 days of the filing of the appeal.
(g) Municipality; determination from DPS; time-limited option. Until July 1, 2018, a municipality whose plan has been confirmed under section 4350 of this title may seek issuance of a determination of energy compliance from the Commissioner of Public Service if it is a member of a regional planning commission whose regional plan has not received such a determination.
(1) The Commissioner shall issue an affirmative determination of energy compliance for the municipal plan on finding that the plan meets the requirements of subsection (c) of this section. The Commissioner’s review of the municipal plan shall be for the purpose only of determining whether a determination of energy compliance should be issued because those requirements are met.
(2) A municipality aggrieved by an act or decision of the Commissioner under this subsection may appeal in accordance with the procedures of subsection (f) of this section.
(h) Determination; time period. An affirmative determination of energy compliance issued pursuant to this section shall remain in effect until the end of the period for expiration or readoption of the plan to which it applies.
(i) Commissioner; consultation. In the discharge of the duties assigned under this section, the Commissioner shall consult with and solicit the recommendations of the Secretaries of Agriculture, Food and Markets, of Commerce and Community Development, of Natural Resources, and of Transportation.
(Added 2015, No. 174 (Adj. Sess.), § 6, eff. June 13, 2016; amended 2017, No. 197 (Adj. Sess.), § 13.)
Subchapter 4 Regional Development
§ 4361 Repealed
[Repealed]
1981, No. 132 (Adj. Sess.), § 18.
§ 4362 Appropriations
(a) For the purposes outlined in subdivisions 4345(6) and (12) of this title, regional planning commissions may receive and expend monies from any source, including the participating municipalities and the Agency of Commerce and Community Development, out of funds appropriated to that Agency for this purpose. Municipalities may appropriate to and expend funds for regional planning commissions for this purpose. Direct financial assistance from the State to regional planning commissions for the purposes outlined in subdivisions 4345(6) and (12) of this title is restricted to 50 percent of the annual operating expenses of the commission.
(b) Regional planning commissions requesting State aid from the Agency of Commerce and Community Development shall submit annual reports to the Agency of their activities and shall comply with such rules, regulations, and standards as the Agency shall prescribe to determine eligibility for State financial assistance, and, further, shall submit to the Agency, or must be in the process of preparing, a program for the economic development of the region that is consistent with the regional plan for the region that has been adopted or that is in the process of preparation.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 6, eff. April 11, 1972; 1995, No. 190 (Adj. Sess.), § 1(a); 2019, No. 14, § 67, eff. April 30, 2019.)
Subchapter 5 Municipal Development Plan
§ 4381 Authorization
Any municipality may undertake a comprehensive planning program, including related preliminary planning and engineering studies, and prepare, maintain, and implement a plan within its jurisdiction in accordance with this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1987, No. 200 (Adj. Sess.), § 9, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 4b.)
§ 4382 The plan for a municipality
(a) A plan for a municipality shall be consistent with the goals established in section 4302 of this title and compatible with approved plans of other municipalities in the region and with the regional plan and shall include the following:
(1) A statement of objectives, policies, and programs of the municipality to guide the future growth and development of land, public services, and facilities, and to protect the environment.
(2) A land use plan, which shall consist of a map and statement of present and prospective land uses, that:
(A) Indicates those areas proposed for forests, recreation, agriculture (using the agricultural lands identification process established in 6 V.S.A. § 8), residence, commerce, industry, public and semi-public uses, and open spaces, areas reserved for flood plain, and areas identified by the State, the regional planning commission, or the municipality that require special consideration for aquifer protection; for wetland protection; for the maintenance of forest blocks, wildlife habitat, and habitat connectors; or for other conservation purposes.
(B) Sets forth the present and prospective location, amount, intensity, and character of such land uses and the appropriate timing or sequence of land development activities in relation to the provision of necessary community facilities and service.
(C) Identifies those areas, if any, proposed for designation under chapter 76A of this title and for status under 10 V.S.A. §§ 6033 and 6034, together with, for each area proposed for designation, an explanation of how the designation would further the plan’s goals and the goals of section 4302 of this title, and how the area meets the requirements for the type of designation to be sought.
(D) Indicates those areas that are important as forest blocks and habitat connectors and plans for land development in those areas to minimize forest fragmentation and promote the health, viability, and ecological function of forests. A plan may include specific policies to encourage the active management of those areas for wildlife habitat, water quality, timber production, recreation, or other values or functions identified by the municipality.
(3) A transportation plan, consisting of a map and statement of present and prospective transportation and circulation facilities showing existing and proposed highways and streets by type and character of improvement, and where pertinent, parking facilities, transit routes, terminals, bicycle paths and trails, scenic roads, airports, railroads, and port facilities, and other similar facilities or uses, with indications of priority of need.
(4) A utility and facility plan, consisting of a map and statement of present and prospective community facilities and public utilities showing existing and proposed educational, recreational and other public sites, buildings and facilities, including hospitals, libraries, power generating plants and transmission lines, water supply, sewage disposal, refuse disposal, storm drainage, and other similar facilities and activities, and recommendations to meet future needs for community facilities and services, with indications of priority of need, costs, and method of financing.
(5) A statement of policies on the preservation of rare and irreplaceable natural areas, scenic and historic features, and resources.
(6) An educational facilities plan consisting of a map and statement of present and projected uses and the local public school system.
(7) A recommended program for the implementation of the objectives of the development plan.
(8) A statement indicating how the plan relates to development trends and plans for adjacent municipalities, areas, and the region developed under this title.
(9) An energy plan, including an analysis of energy resources, needs, scarcities, costs and problems within the municipality, a statement of policy on the conservation of energy, including programs, such as thermal integrity standards for buildings, to implement that policy, a statement of policy on the development of renewable energy resources, a statement of policy on patterns and densities of land use likely to result in conservation of energy.
(10) A housing element that shall include a recommended program for public and private actions to address housing needs and targets as identified by the regional planning commission pursuant to subdivision 4348a(a)(9) of this title. The program shall use data on year-round and seasonal dwellings and include specific actions to address the housing needs of persons with low income and persons with moderate income and account for permitted residential development as described in section 4412 of this title.
(11) An economic development element that describes present economic conditions and the location, type, and scale of desired economic development, and identifies policies, projects, and programs necessary to foster economic growth.
[Subdivision (a)(12) effective until January 1, 2028; see also subdivision (a)(12) effective January 1, 2028 set out below.]
(12)(A) A flood resilience plan that:
(i) identifies flood hazard and fluvial erosion hazard areas, based on river corridor maps provided by the Secretary of Natural Resources pursuant to 10 V.S.A. § 1428(a) or maps recommended by the Secretary, and designates those areas to be protected, including floodplains, river corridors, land adjacent to streams, wetlands, and upland forests, to reduce the risk of flood damage to infrastructure and improved property; and
(ii) recommends policies and strategies to protect the areas identified and designated under subdivision (12)(A)(i) of this subsection and to mitigate risks to public safety, critical infrastructure, historic structures, and municipal investments.
(B) A flood resilience plan may reference an existing local hazard mitigation plan approved under 44 C.F.R. § 201.6.
[Subdivision (a)(12) effective January 1, 2028; see also subdivision (a)(12) effective until January 1, 2028 set out above.]
(12)(A) A flood resilience plan that:
(i) identifies flood hazard and fluvial erosion hazard areas, based on river corridor maps provided by the Secretary of Natural Resources pursuant to 10 V.S.A. § 1428(a) or maps recommended by the Secretary, and designates those areas to be protected, including floodplains, river corridors, land adjacent to streams, wetlands, and upland forests, to reduce the risk of flood damage to infrastructure and improved property; and
(ii) recommends policies and strategies to protect the areas identified and designated under subdivision (12)(A)(i) of this subsection and to mitigate risks to public safety, critical infrastructure, historic structures, and municipal investments. These strategies shall include adoption and implementation of the State Flood Hazard Area Standards.
(B) A flood resilience plan may reference an existing local hazard mitigation plan approved under 44 C.F.R. § 201.6.
(b) The maps called for by this section may be incorporated on one or more maps, and may be referred to in each separate statement called for by this section.
(c) Where appropriate, and to further the purposes of subsection 4302(b) of this title, a municipal plan shall be based upon inventories, studies, and analyses of current trends and shall consider the probable social and economic consequences of the proposed plan. Such studies may consider or contain, but not be limited to:
(1) population characteristics and distribution, including income and employment;
(2) the existing and projected housing needs by amount, type, and location for all economic groups within the municipality and the region;
(3) existing and estimated patterns and rates of growth in the various land use classifications, and desired patterns and rates of growth in terms of the community’s ability to finance and provide public facilities and services.
(d) Where appropriate, a municipal plan may provide for the use of “transit passes” or other evidence of reduced demand for parking spaces in lieu of parking spaces.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 7, eff. April 11, 1972; 1975, No. 236 (Adj. Sess.), § 2; 1979, No. 174 (Adj. Sess.), § 8; 1985, No. 188 (Adj. Sess.), § 10; 1987, No. 200 (Adj. Sess.), §§ 8, 10, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 7; 1991, No. 130 (Adj. Sess.), § 2; 1995, No. 122 (Adj. Sess.), § 2, eff. Apr. 25, 1996; 2003, No. 115 (Adj. Sess.), § 89; 2011, No. 52, § 33, eff. July 1, 2012; 2013, No. 16, § 4, eff. July 1, 2014; 2013, No. 146 (Adj. Sess.), § 6, eff. May 27, 2014; 2015, No. 171 (Adj. Sess.), § 17, eff. Jan. 1, 2018; 2023, No. 47, § 12, eff. July 1, 2023; 2023, No. 121 (Adj. Sess.), § 8, eff. January 1, 2028; 2023, No. 181 (Adj. Sess.), § 30, § 51, eff. June 17, 2024.)
§ 4383 Repealed
[Repealed]
1987, No. 200 (Adj. Sess.), § 10, eff. July 1, 1989.
§ 4384 Preparation of plan; hearings by planning commission
(a) A municipality may have a plan. Any plan for a municipality shall be prepared by the planning commission of that municipality. At the outset of the planning process and throughout the process, planning commissions shall solicit the participation of local citizens and organizations by holding informal working sessions that suit the needs of local people. An amendment or repeal of a plan may be prepared by or at the direction of the planning commission or by any other person or body.
(b) If any person or body other than a municipal planning commission prepares an amendment to a plan, that person or body shall submit the amendment in writing and all supporting documents to the municipal planning commission. The planning commission may then proceed as if the amendment had been prepared by the commission. However, if the proposed amendment is supported by a petition signed by not less than five percent of the voters of the municipality, the planning commission shall correct any technical deficiency and shall, without otherwise changing the amendment, promptly proceed in accordance with subsections (c) through (f) of this section as if it had been prepared by the commission.
(c) When considering an amendment to a plan, the planning commission shall prepare a written report on the proposal. The report shall address the extent to which the plan, as amended, is consistent with the goals established in section 4302 of this title. If the proposal would alter the designation of any land area, the report should cover the following points:
(1) The probable impact on the surrounding area, including the effect of any resulting increase in traffic, and the probable impact on the overall pattern of land use.
(2) The long-term cost or benefit to the municipality, based upon consideration of the probable impact on:
(A) the municipal tax base; and
(B) the need for public facilities.
(3) The amount of vacant land which is:
(A) already subject to the proposed new designation; and
(B) actually available for that purpose, and the need for additional land for that purpose.
(4) The suitability of the area in question for the proposed purpose, after consideration of:
(A) appropriate alternative locations;
(B) alternative uses for the area under consideration; and
(C) the probable impact of the proposed change on other areas similarly designated.
(5) The appropriateness of the size and boundaries of the area proposed for change, with respect to the area required for the proposed use, land capability, and existing development in the area.
(d) The planning commission shall hold at least one public hearing within the municipality after public notice on any proposed plan or amendment.
(e) At least 30 days prior to the first hearing, a copy of the proposed plan or amendment and the written report shall be delivered physically or electronically with proof of receipt, or mailed by certified mail, return receipt requested, to each of the following:
(1) the chair of the planning commission of each abutting municipality, or in the absence of any planning commission in an abutting municipality, to the clerk of that municipality;
(2) the executive director of the regional planning commission of the area in which the municipality is located;
(3) the Department of Housing and Community Development within the Agency of Commerce and Community Development; and
(4) business, conservation, low-income advocacy, and other community or interest groups or organizations that have requested notice in writing prior to the date the hearing is warned.
Any of the foregoing bodies, or their representatives, may thereafter submit comments on the proposed plan or amendment to the planning commission, and may appear and be heard in any further proceeding with respect to the adoption of the proposed plan or amendment. The planning commission shall demonstrate that it has solicited comment from planning commissions of abutting municipalities and from the regional planning commission with respect to the compatibility of their respective plans with its own plan.
(f) The planning commission may make revisions to the proposed plan or amendment and to any written report, and shall thereafter submit the proposed plan or amendment and any written report to the legislative body of the municipality. However, if requested by the legislative body, or if a proposed amendment was supported by a petition signed by not less than five percent of the voters of the municipality, the planning commission shall promptly submit the amendment, with changes only to correct technical deficiencies, to the legislative body of the municipality, together with any recommendation or opinion it considers appropriate. Simultaneously with the submission, the planning commission shall file with the clerk of the municipality a copy of the proposed plan or amendment, and any written report, for public review.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 257 (Adj. Sess.), § 8, eff. April 11, 1972; 1981, No. 132 (Adj. Sess.), § 9; 1987, No. 200 (Adj. Sess.), § 11, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 8; 1995, No. 190 (Adj. Sess.), § 1(a); 2017, No. 197 (Adj. Sess.), § 14.)
§ 4385 Adoption and amendment of plans; hearing by legislative body
(a) Not less than 30 nor more than 120 days after a proposed plan or amendment is submitted to the legislative body of a municipality under section 4384 of this title, the legislative body of a municipality with a population of 2,500 persons or less shall hold the first of one or more public hearings, after public notice, on the proposed plan or amendment, and shall make copies of the proposal and any written report by the planning commission available to the public on request. A municipality with a population of more than 2,500 persons shall hold two or more such hearings. Failure to hold a hearing within the 120 days shall not invalidate the adoption of the plan or amendment.
(b)(1) The legislative body may change the proposed plan or amendment, but shall not do so less than 15 days prior to the final public hearing. If the legislative body at any time makes substantial changes in the concept, meaning, or extent of the proposed plan or amendment, it shall warn a new public hearing or hearings under subsection (a) of this section.
(2) If any part of the proposal is changed, the legislative body, at least 15 days prior to the hearing, shall file a copy of the changed proposal with the clerk of the municipality, with any individual or organization requesting a copy in writing, and with the planning commission. The planning commission shall submit to the legislative body at or prior to the public hearing a report that analyzes the extent to which the changed proposal, when taken together with the rest of the plan, is consistent with the legislative goals established in section 4302 of this title.
(c) A plan of a municipality or an amendment thereof shall be adopted by a majority of the members of its legislative body at a meeting which is held after the final public hearing. If, however, at a regular or special meeting of the voters duly warned and held as provided in 17 V.S.A. chapter 55, a municipality elects to adopt or amend municipal plans by Australian ballot, that procedure shall then apply unless rescinded by the voters at a regular or special meeting similarly warned and held. If the proposed plan or amendment is not adopted so as to take effect within one year after the date of the final hearing of the planning commission, it shall be considered rejected by the municipality. Plans and amendments shall be effective upon adoption. Copies of newly adopted plans and amendments shall be provided to the regional planning commission and to the Commissioner of Housing and Community Development within 30 days after adoption, which may be done electronically, provided the sender has proof of receipt. If a municipality wishes its plan or plan amendment to be eligible for approval under the provisions of section 4350 of this title, it shall request approval. The request for approval may be before or after adoption of the plan by the municipality, at the option of the municipality.
(d) Plans may be reviewed from time to time and may be amended in the light of new developments and changed conditions affecting the municipality. An amendment to a plan does not affect or extend the plan’s expiration date.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1981, No. 132 (Adj. Sess.), § 10; 1987, No. 200 (Adj. Sess.), §§ 12, 13, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 9; 2015, No. 90 (Adj. Sess.), § 2; 2017, No. 197 (Adj. Sess.), § 15; 2023, No. 6, § 259, eff. July 1, 2023.)
§ 4386 Repealed
[Repealed]
1971, No. 257 (Adj. Sess.), § 24, eff. April 11, 1972.
§ 4387 Readoption of plans
(a) All plans, including all prior amendments, shall expire every eight years unless they are readopted according to the procedures in section 4385 of this title.
(b)(1) A municipality may readopt any plan that has expired or is about to expire. Prior to any readoption, the planning commission shall review and update the information on which the plan is based, and shall consider this information in evaluating the continuing applicability of the plan. In its review, the planning commission shall:
(A) consider the recommendations of the regional planning commission provided pursuant to subdivision 4350(c)(2) of this title;
(B) engage in community outreach and involvement in updating the plan;
(C) consider consistency with the goals established in section 4302 of this title;
(D) address the required plan elements under section 4382 of this title;
(E) evaluate the plan for internal consistency among plan elements, goals, objectives, and community standards;
(F) address compatibility with the regional plan and the approved plans of adjoining municipalities; and
(G) establish a program and schedule for implementing the plan.
(2) The readopted plan shall remain in effect for the ensuing eight years unless earlier readopted.
(c) Upon the expiration of a plan, all bylaws and capital budgets and programs then in effect shall remain in effect, but shall not be amended until a plan is in effect.
(d) The fact that a plan has not been approved shall not make it inapplicable, except as specifically provided by this chapter. Bylaws, capital budgets, and programs shall remain in effect, even if the plan has not been approved.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1975, No. 164 (Adj. Sess.), § 4; 1981, No. 132 (Adj. Sess.), § 11; 1987, No. 200 (Adj. Sess.), § 14, eff. July 1, 1989; 1989, No. 280 (Adj. Sess.), § 10; 2015, No. 90 (Adj. Sess.), § 3.)
Subchapter 6 Implementation of Plan
§ 4401 Purpose and authority
Any municipality that has adopted and has in effect a plan and has created a planning commission under this chapter may implement the plan by adopting, amending, and enforcing any or all of the regulatory and nonregulatory tools provided for in this chapter. All such regulatory and nonregulatory tools shall be in conformance with the plan, shall be adopted for the purposes set forth in section 4302 of this title, and shall be in accord with the policies set forth therein.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 116, § 5; 1971, No. 257 (Adj. Sess.), §§ 9, 10, eff. April 11, 1972; 1973, No. 261 (Adj. Sess.), § 4, eff. July 1, 1974; 1975, No. 164 (Adj. Sess.), § 5; 1983, No. 249 (Adj. Sess.), § 4; 1993, No. 232 (Adj. Sess.), § 1, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 91.)
§ 4402 Bylaws and regulatory implementation tools authorized
A municipality may adopt regulatory tools, including the following specific regulatory tools which are more fully described in subchapter 7 of this chapter:
(1) Zoning bylaws.
(2) Site plan bylaws.
(3) Subdivision bylaws.
(4) Unified development bylaws.
(5) Official map.
(6) Impact fees.
(7) Phasing.
(8) Transfer of development rights.
(9) Special or freestanding bylaws.
(Added 2003, No. 115 (Adj. Sess.), § 92.)
§ 4403 Nonregulatory implementation tools
A municipality may utilize the following tools, and other tools not specifically listed, in conformance with the municipal plan and for the purposes established in section 4302 of this title, alone or in conjunction with regulatory tools described in section 4402 of this title.
(1) Capital budget and program. A municipality may adopt a capital budget and five-year program, pursuant to section 4430 of this title.
(2) Tax increment financing. Pursuant to chapter 53 of this title, a municipality may create within its jurisdiction one or more tax increment financing districts.
(3) Tax stabilization contracts. Pursuant to 32 V.S.A. §§ 4969 and 4985, a municipality may enter into tax stabilization contracts.
(4) Purchase or acceptance of development rights. A municipality may purchase or accept development rights as a method to implement its plan, pursuant to 10 V.S.A. chapter 155.
(5) Plans supporting the municipal plan. A municipality may develop supporting plans and may incorporate these plans into the municipal plan pursuant to the process described in section 4385 of this title.
(6) Advisory commissions. For the purposes of this chapter, the term “advisory commissions” includes advisory committees. A municipality may form commissions that are composed of persons with particular expertise or interest to assist with implementation of the plan in areas such as design review, historic preservation, housing, and conservation.
(Added 2003, No. 115 (Adj. Sess.), § 93.)
§ 4404 State designation; implementation of municipal plan
A municipality, to implement its municipal plan, may apply for State designation of an existing or planned municipal growth center, downtown, village center, new town center, or neighborhood development area as necessary for eligibility to receive associated benefits pursuant to chapter 76A of this title.
(Added 2013, No. 146 (Adj. Sess.), § 8, eff. May 27, 2014.)
§§ 4404a-4409 Repealed
[Repealed]
2003, No. 115 (Adj. Sess.), § 119.
Subchapter 7 Bylaws
§ 4410 Regulatory implementation of the municipal plan
A municipality that has adopted a plan through its bylaws may define and regulate land development in any manner that the municipality establishes in its bylaws, provided those bylaws are in conformance with the plan and are adopted for the purposes set forth in section 4302 of this title. In its bylaws, a municipality may utilize any or all of the tools provided in this subchapter and any other regulatory tools or methods not specifically listed. However, no bylaws shall directly conflict with sections 4412 and 4413 of this title and subchapters 9, 10, and 11 of this title.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4411 Zoning bylaws
(a) A municipality may regulate land development in conformance with its adopted municipal plan and for the purposes set forth in section 4302 of this title to govern the use of land and the placement, spacing, and size of structures and other factors specified in the bylaws related to public health, safety, or welfare. Zoning bylaws may permit, prohibit, restrict, regulate, and determine land development, including the following:
(1) specific uses of land and shoreland facilities;
(2) dimensions, location, erection, construction, repair, maintenance, alteration, razing, removal, and use of structures;
(3) areas and dimensions of land to be occupied by uses and structures, as well as areas, courts, yards, and other open spaces and distances to be left unoccupied by uses and structures;
(4) timing or sequence of growth, density of population, and intensity of use;
(5) uses within a river corridor and buffer, as those terms are defined in 10 V.S.A. §§ 1422 and 1427.
(b) All zoning bylaws shall apply to all lands within the municipality other than as specifically limited or exempted in accordance with specific standards included within those bylaws and in accordance with the provisions of this chapter. The provisions of those bylaws may be classified so that different provisions may be applied to different classes of situations, uses, and structures and to different and separate districts of the municipality as may be described by a zoning map made part of the bylaws. The land use map required pursuant to subdivision 4382(a)(2) of this title of any municipality may be designated as the zoning map except in cases in which districts are not deemed by the planning commission to be described in sufficient accuracy or detail by the municipal plan land use map. All provisions shall be uniform for each class of use or structure within each district, except that additional classifications may be made within any district for any or all of the following:
(1) To make transitional provisions at and near the boundaries of districts.
(2) To regulate the expansion, reduction, or elimination of certain nonconforming uses, structures, lots, or parcels.
(3) To regulate, restrict, or prohibit uses or structures at or near any of the following:
(A) Major thoroughfares, their intersections and interchanges, and transportation arteries.
(B) Natural or artificial bodies of water.
(C) Places of relatively steep slope or grade.
(D) Public buildings and public grounds.
(E) Aircraft and helicopter facilities.
(F) Places having unique patriotic, ecological, historical, archaeological, or community interest or value, or located within scenic or design control districts.
(G) Flood or other hazard areas and other places having a special character or use affecting or affected by their surroundings.
(H) River corridors, river corridor protection areas, and buffers, as the term “buffer” is defined in 10 V.S.A. § 1422.
(4) To regulate, restrict, or prohibit uses or structures in overlay districts, as set forth in subdivision 4414(2) of this title.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2009, No. 110 (Adj. Sess.), § 6; 2011, No. 138 (Adj. Sess.), § 12, eff. May 14, 2012.)
§ 4412 Required provisions and prohibited effects
Notwithstanding any existing bylaw, the following land development provisions shall apply in every municipality:
(1) Equal treatment of housing and required provisions for affordable housing.
(A) No bylaw nor its application by an appropriate municipal panel under this chapter shall have the effect of excluding housing that meets the needs of the population as determined in the housing element of its municipal plan as required under subdivision 4382(a)(10) of this title or the effect of discriminating in the permitting of housing as specified in 9 V.S.A. § 4503.
(B) Except as provided in subdivisions 4414(1)(E) and (F) of this title, no bylaw shall have the effect of excluding mobile homes, modular housing, or prefabricated housing from the municipality, except upon the same terms and conditions as conventional housing is excluded. A municipality may establish specific site standards in the bylaws to regulate individual sites within preexisting mobile home parks with regard to distances between structures and other standards as necessary to ensure public health, safety, and welfare, provided the standards do not have the effect of prohibiting the replacement of mobile homes on existing lots.
(C) No bylaw shall have the effect of excluding mobile home parks, as defined in 10 V.S.A. chapter 153, from the municipality.
(D) Bylaws shall designate appropriate districts and reasonable regulations for multiunit or multifamily dwellings. No bylaw shall have the effect of excluding these multiunit or multifamily dwellings from the municipality. In any district that allows year-round residential development, duplexes shall be an allowed use with dimensional standards that are not more restrictive than is required for a single-unit dwelling, including no additional land or lot area than would be required for a single-unit dwelling. In any district that is served by municipal sewer and water infrastructure that allows residential development, multiunit dwellings with four or fewer units shall be a permitted use on the same size lot as single-unit dwelling, unless that district specifically requires multiunit structures to have more than four dwelling units.
(E) Except for flood hazard and fluvial erosion area bylaws adopted pursuant to section 4424 of this title, no bylaw shall have the effect of excluding as a permitted use one accessory dwelling unit that is located within or appurtenant to a single-family dwelling on an owner-occupied lot. A bylaw shall require a single-family dwelling with an accessory dwelling unit to be subject to the same review, dimensional, or other controls as required for a single-family dwelling without an accessory dwelling unit. The criteria for conversion of an existing detached nonresidential building to habitable space for an accessory dwelling unit shall not be more restrictive than the criteria used for a single-family dwelling without an accessory dwelling unit.
(F) Nothing in subdivision (1)(E) of this section shall be construed to prohibit:
(i) a bylaw that is less restrictive of accessory dwelling units; or
(ii) a bylaw that regulates short-term rental units distinctly from residential rental units.
(G) A residential care home or group home to be operated under State licensing or registration, serving not more than eight persons who have a disability as defined in 9 V.S.A. § 4501, or a recovery residence serving not more than eight persons, shall be considered by right to constitute a permitted single-family residential use of property. This subdivision (G) does not require a municipality to allow a greater number of residential care homes or group homes on a lot than the number of single-family dwellings allowed on the lot. As used in this subdivision, “recovery residence” means a shared living residence supporting persons recovering from a substance use disorder that:
(i) Provides tenants with peer support and assistance accessing support services and community resources available to persons recovering from substance use disorders.
(ii) Is certified by an organization approved by the Department of Health and that is either a Vermont affiliate of the National Alliance for Recovery Residences or another approved organization or is pending such certification. If certification is pending beyond 45 days, the municipality shall retain its right to consider the residence pursuant to zoning bylaws adopted in compliance with 24 V.S.A. § 4411.
(H) No bylaw shall have the effect of prohibiting or penalizing a hotel from renting rooms to provide housing assistance through the State of Vermont’s General Assistance program, or to any person whose room is rented with public funds. In this subsection, the term “hotel” has the same meaning as in 32 V.S.A. 9202(3).
(2) Existing small lots. Any lot that is legally subdivided, is in individual and separate and nonaffiliated ownership from surrounding properties, and is in existence on the date of enactment of any bylaw, including an interim bylaw, may be developed for the purposes permitted in the district in which it is located, even though the small lot no longer conforms to minimum lot size requirements of the new bylaw or interim bylaw.
(A) A municipality may prohibit development of a lot not served by and able to connect to municipal sewer and water service if either of the following applies:
(i) the lot is less than one-eighth acre in area; or
(ii) the lot has a width or depth dimension of less than 40 feet.
(B) The bylaw may provide that if an existing small lot subsequently comes under common ownership with one or more contiguous lots, the nonconforming lot shall be deemed merged with the contiguous lot. However, a nonconforming lot shall not be deemed merged and may be separately conveyed if all the following apply:
(i) The lots are conveyed in their preexisting, nonconforming configuration.
(ii) On the effective date of any bylaw, each lot was developed with a water supply and wastewater disposal system.
(iii) At the time of transfer, each water supply and wastewater system is functioning in an acceptable manner.
(iv) The deeds of conveyance create appropriate easements on both lots for replacement of one or more wastewater systems, potable water systems, or both, in case there is a failed system or failed supply as defined in 10 V.S.A. chapter 64.
(C) Nothing in this subdivision (2) shall be construed to prohibit a bylaw that is less restrictive of development of existing small lots.
(3) Required frontage on, or access to, public roads, class 4 town highways, or public waters. Land development may be permitted on lots that do not have frontage either on a public road, class 4 town highway, or public waters, provided that access through a permanent easement or right-of-way has been approved in accordance with standards and process specified in the bylaws. This approval shall be pursuant to subdivision bylaws adopted in accordance with section 4418 of this title, or where subdivision bylaws have not been adopted or do not apply, through a process and pursuant to standards defined in bylaws adopted for the purpose of assuring safe and adequate access. Any permanent easement or right-of-way providing access to such a road or waters shall be at least 20 feet in width.
(4) Protection of home occupations. No bylaw may infringe upon the right of any resident to use a minor portion of a dwelling unit for an occupation that is customary in residential areas and that does not have an undue adverse effect upon the character of the residential area in which the dwelling is located.
(5) Child care. A “family child care home or facility” as used in this subdivision means a home or facility where the owner or operator is to be licensed or registered by the State for child care. A family child care home serving six or fewer children shall be considered to constitute a permitted single-family residential use of property. A family child care home serving no more than six full-time children and four part-time children, as defined in 33 V.S.A. § 3511(7), shall be considered to constitute a permitted use of property but may require site plan approval based on local zoning requirements. A family child care facility serving more than six full-time and four part-time children may, at the discretion of the municipality, be subject to all applicable municipal bylaws.
(6) Heights of renewable energy resource structures. The height of wind turbines with blades less than 20 feet in diameter, or rooftop solar collectors less than 10 feet high on sloped roofs, any of which are mounted on complying structures, shall not be regulated unless the bylaws provide specific standards for regulation. For the purpose of this subdivision, a sloped roof means a roof having a slope of more than five degrees. In addition, the regulation of antennae that are part of a telecommunications facility, as defined in 30 V.S.A. § 248a, may be exempt from review under this chapter according to the provisions of that section.
(7) Nonconformities. All bylaws shall define how nonconformities will be addressed, including standards for nonconforming uses, nonconforming structures, and nonconforming lots.
(A) To achieve the purposes of this chapter set forth in section 4302 of this title, municipalities may regulate and prohibit expansion and undue perpetuation of nonconformities. Specifically, a municipality, in its bylaws, may:
(i) Specify a time period that shall constitute abandonment or discontinuance of that nonconforming use, provided the time period is not less than six months.
(ii) Specify the extent to which, and circumstances under which, a nonconformity may be maintained or repaired.
(iii) Specify the extent to which, and circumstances under which, a nonconformity may change or expand.
(iv) Regulate relocation or enlargement of a structure containing a nonconforming use.
(v) Specify the circumstances in which a nonconformity that is destroyed may be rebuilt.
(vi) Specify other appropriate circumstances in which a nonconformity must comply with the bylaws.
(B) If a mobile home park, as defined in 10 V.S.A. chapter 153, is a nonconformity pursuant to a municipality’s bylaws, the entire mobile home park shall be treated as a nonconformity under those bylaws, and individual lots within the mobile home park shall in no event be considered nonconformities. Unless the bylaws provide specific standards as described in subdivision (1)(B) of this section, where a mobile home park is a nonconformity under bylaws, its status regarding conformance or nonconformance shall apply to the parcel as a whole, and not to any individual mobile home lot within the park. An individual mobile home lot that is vacated shall not be considered a discontinuance or abandonment of a nonconformity.
(C) Nothing in this section shall be construed to restrict the authority of a municipality to abate public nuisances or to abate or remove public health risks or hazards.
(8) Communications antennae and facilities.
(A) Except to the extent bylaws protect historic landmarks and structures listed on the State or National Register of Historic Places, no permit shall be required for placement of an antenna used to transmit, receive, or transmit and receive communications signals on that property owner’s premises if the area of the largest face of the antenna is not more than 15 square feet, and if the antenna and any mast support do not extend more than 12 feet above the roof of that portion of the building to which the mast is attached.
(B) If an antenna structure is less than 20 feet in height and its primary function is to transmit or receive communication signals for commercial, industrial, institutional, nonprofit, or public purposes, it shall not be regulated under this chapter if it is located on a structure located within the boundaries of a downhill ski area and permitted under this chapter. For the purposes of this subdivision, “downhill ski area” means an area with trails for downhill skiing served by one or more ski lifts and any other areas within the boundaries of the ski area and open to the public for winter sports.
(C) The regulation of a telecommunications facility, as defined in 30 V.S.A. § 248a, shall be exempt from municipal approval under this chapter when and to the extent jurisdiction is assumed by the Public Utility Commission according to the provisions of that section. This exemption from obtaining approval under this chapter shall not affect the substantial deference to be given to a plan or recommendation based on a local land use bylaw under 30 V.S.A. § 248a(c)(2).
(D) A municipality may regulate communications towers, antennae, and related facilities in its bylaws provided that such regulations do not have the purpose or effect of being inconsistent with subdivisions (A) through (C) of this subdivision (8).
(9) De minimis telecommunications impacts. An officer or entity designated by the municipality shall review telecommunications facilities applications, and upon determining that a particular application will impose no impact or de minimis impact upon any criteria established in the bylaws, shall approve the application.
(10) Planting projects; flood hazard and similar areas. A bylaw under this chapter shall not require the filing of an application or the issuance of a permit by the municipality for a planting project considered to have a permit by operation of subsection 4424(c) of this title.
(11) Accessory on-farm businesses. No bylaw shall have the effect of prohibiting an accessory on-farm business at the same location as a farm.
(A) Definitions. As used in this subdivision (11):
(i) “Accessory on-farm business” means activity on a farm, the revenues of which may exceed the revenues of the farming operation, and comprises one or both of the following:
(I) The storage, preparation, processing, and sale of qualifying products, provided that the qualifying products are produced on a farm; the sale of products that name, describe, or promote the farm or accessory on-farm business, including merchandise or apparel that features the farm or accessory on-farm business; or the sale of bread or baked goods.
(II) Educational, recreational, or social events that feature agricultural practices or qualifying products, or both. Such events may include tours of the farm, farm stays, tastings and meals featuring qualifying products, and classes or exhibits in the preparation, processing, or harvesting of qualifying products. As used in this subdivision (II), “farm stay” means a paid, overnight guest accommodation on a farm for the purpose of participating in educational, recreational, or social activities on the farm that feature agricultural practices or qualifying products, or both. A farm stay includes the option for guests to participate in such activities.
(ii) “Farm” means a parcel or parcels owned, leased, or managed by a person, devoted primarily to farming, and subject to the RAP rules. For leased lands to be part of a farm, the lessee must exercise control over the lands to the extent they would be considered as part of the lessee’s own farm. Indicators of such control include whether the lessee makes day-to-day decisions concerning the cultivation or other farming-related use of the leased lands and whether the lessee manages the land for farming during the lease period.
(iii) “Farming” shall have the same meaning as in 10 V.S.A. § 6001.
(iv) “Qualifying product” means a product that is:
(I) an agricultural, horticultural, viticultural, or dairy commodity, or maple syrup;
(II) livestock or cultured fish or a product thereof;
(III) a product of poultry, bees, an orchard, or fiber crops;
(IV) a commodity otherwise grown or raised on a farm; or
(V) a product manufactured on one or more farms from commodities wholly grown or raised on one or more farms.
(v) “RAP rules” means the rules on required agricultural practices adopted pursuant to 6 V.S.A. chapter 215, subchapter 2.
(B) Eligibility. For an accessory on-farm business to be eligible for the benefit of this subdivision (11), the business shall comply with each of the following:
(i) The business is operated by the farm owner, one or more persons residing on the farm parcel, or the lessee of a portion of the farm.
(ii) The farm meets the threshold criteria for the applicability of the RAP rules as set forth in those rules.
(C) Use of structures or land. An accessory on-farm business may take place inside new or existing structures or on the land.
(D) Review; permit. Activities of an accessory on-farm business that are not exempt under section 4413 of this title may be subject to site plan review pursuant to section 4416 of this title. A bylaw may require that such activities meet the same performance standards otherwise adopted in the bylaw for similar commercial uses pursuant to subdivision 4414(5) of this title.
(E) Less restrictive. A municipality may adopt a bylaw concerning accessory on-farm businesses that is less restrictive than the requirement of this subdivision (11).
(F) Notification; training. The Secretary of Agriculture, Food and Markets shall provide periodic written notification and training sessions to farms subject to the RAP rules on the existence and requirements of this subdivision (11) and the potential need for other permits for an accessory on-farm business, including a potable water and wastewater system permit under 10 V.S.A. chapter 64.
(12) In any area served by municipal sewer and water infrastructure that allows residential development, bylaws shall establish lot and building dimensional standards that allow five or more dwelling units per acre for each allowed residential use. Density and minimum lot size standards for multiunit dwellings shall not be more restrictive than those required for single-family dwellings.
(13) In any area served by municipal sewer and water infrastructure that allows residential development, bylaws shall permit any affordable housing development, as defined in subdivision 4303(2) of this title, including mixed-use development, to exceed density limitations for residential developments by an additional 40 percent, which shall include exceeding maximum height limitations by one floor, provided that the structure complies with the Vermont Fire and Building Safety Code.
(14) No zoning or subdivision bylaw shall have the effect of prohibiting unrelated occupants from residing in the same dwelling unit.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2005, No. 172 (Adj. Sess.), § 5, eff. May 22, 2006; 2007, No. 79, § 15; 2007, No. 79, § 15, eff. June 9, 2007; 2009, No. 54, § 45, eff. June 1, 2009; 2011, No. 53, § 14e, eff. May 27, 2011; 2011, No. 137 (Adj. Sess.), § 7, eff. May 14, 2012; 2011, No. 155 (Adj. Sess.), § 14; 2011, No. 170 (Adj. Sess.), § 16e, eff. May 18, 2012; 2013, No. 16, § 5, eff. May 6, 2013; 2013, No. 96 (Adj. Sess.), § 162; 2013, No. 131 (Adj. Sess.), § 127, eff. May 20, 2014; 2015, No. 130 (Adj. Sess.), § 5b, eff. May 25, 2016; 2017, No. 4, § 2, eff. March 6, 2017; 2017, No. 130 (Adj. Sess.), § 17; 2017, No. 143 (Adj. Sess.), § 2; 2019, No. 179 (Adj. Sess.), § 1, eff. Oct. 12, 2020; 2021, No. 174 (Adj. Sess.), § 1, eff. July 1, 2022; 2023, No. 22, § 9, eff. May 25, 2023; 2023, No. 47, § 2, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 17, § 52, eff. June 17, 2024.)
§ 4413 Limitations on municipal bylaws
(a)(1) The following uses may be regulated only with respect to location, size, height, building bulk, yards, courts, setbacks, density of buildings, off-street parking, loading facilities, traffic, noise, lighting, landscaping, and screening requirements, and only to the extent that regulations do not have the effect of interfering with the intended functional use:
(A) State- or community-owned and -operated institutions and facilities;
(B) public and private schools and other educational institutions certified by the Agency of Education;
(C) churches and other places of worship, convents, and parish houses;
(D) public and private hospitals;
(E) regional solid waste management facilities certified under 10 V.S.A. chapter 159;
(F) hazardous waste management facilities for which a notice of intent to construct has been received under 10 V.S.A. § 6606a;
(G) emergency shelters; and
(H) hotels and motels converted to permanently affordable housing developments.
[Subdivision (a)(2) effective until January 1, 2028; see also subdivision (a)(2) effective January 1, 2028 set out below.]
(2) Except for State-owned and -operated institutions and facilities, a municipality may regulate each of the land uses listed in subdivision (1) of this subsection for compliance with the National Flood Insurance Program and for compliance with a municipal ordinance or bylaw regulating development in a flood hazard area or river corridor, consistent with the requirements of subdivision 2291(25) and section 4424 of this title. These regulations shall not have the effect of interfering with the intended functional use.
[Subdivision (a)(2) effective January 1, 2028; see also subdivision (a)(2) effective until January 1, 2028 set out above.]
(2) Except for State-owned and -operated institutions and facilities, a municipality may regulate each of the land uses listed in subdivision (1) of this subsection for compliance with the National Flood Insurance Program and for compliance with a municipal ordinance or bylaw regulating development in a flood hazard area, consistent with the requirements of subdivision 2291(25) and section 4424 of this title. These regulations shall not have the effect of interfering with the intended functional use.
(3) For purposes of this subsection, regulating the daily or seasonal hours of operation of an emergency shelter shall constitute interfering with the intended functional use.
(b) A bylaw under this chapter shall not regulate electric generation facilities, energy storage facilities, and transmission facilities regulated under 30 V.S.A. § 248 or subject to regulation under 30 V.S.A. § 8011.
(c) Except as otherwise provided by this section and by 10 V.S.A. § 1976, if any bylaw is enacted with respect to any land development that is subject to regulation under State statutes, the more stringent or restrictive regulation applicable shall apply.
(d)(1) A bylaw under this chapter shall not regulate:
(A) required agricultural practices, including the construction of farm structures, as those practices are defined by the Secretary of Agriculture, Food and Markets;
(B) accepted silvicultural practices, as defined by the Commissioner of Forests, Parks and Recreation, including practices that are in compliance with the Acceptable Management Practices for Maintaining Water Quality on Logging Jobs in Vermont, as adopted by the Commissioner of Forests, Parks and Recreation; or
(C) forestry operations.
(2) As used in this section:
(A) “Farm structure” means a building, enclosure, or fence for housing livestock, raising horticultural or agronomic plants, or carrying out other practices associated with accepted agricultural or farming practices, including a silo, as “farming” is defined in 10 V.S.A. § 6001(22), but excludes a dwelling for human habitation.
(B) “Forestry operations” has the same meaning as in 10 V.S.A. § 2602.
(3) A person shall notify a municipality of the intent to build a farm structure and shall abide by setbacks approved by the Secretary of Agriculture, Food and Markets. No municipal permit for a farm structure shall be required.
(4) This subsection does not prevent an appropriate municipal panel, when issuing a decision on an application for land development over which the panel otherwise has jurisdiction under this chapter, from imposing reasonable conditions under subsection 4464(b) of this title to protect wildlife habitat; threatened or endangered species; or other natural, historic, or scenic resources and does not prevent the municipality from enforcing such conditions, provided that the reasonable conditions do not restrict or regulate forestry operations unrelated to land development.
(e) A bylaw enacted under this chapter shall be subject to the restrictions created under section 2295 of this title, with respect to the limits on municipal power to regulate hunting, fishing, trapping, and other activities specified under that section.
(f) This section shall apply in every municipality, notwithstanding any existing bylaw to the contrary.
(g) Notwithstanding any provision of law to the contrary, a bylaw adopted under this chapter shall not:
(1) Regulate the installation, operation, and maintenance, on a flat roof of an otherwise complying structure, of a solar energy device that heats water or space or generates electricity. For the purpose of this subdivision, “flat roof” means a roof having a slope less than or equal to five degrees.
(2) Prohibit or have the effect of prohibiting the installation of solar collectors not exempted from regulation under subdivision (1) of this subsection, clotheslines, or other energy devices based on renewable resources.
(h)(1) Except as necessary to ensure compliance with the National Flood Insurance Program, a bylaw under this chapter shall not regulate any of the following:
(A) an ancillary improvement that does not exceed a footprint of 300 square feet and a height of 10 feet;
(B) the following improvements associated with the construction or installation of a communications line:
(i) the attachment of a new or replacement cable or wire to an existing electrical distribution or communications distribution pole;
(ii) the replacement of an existing electrical distribution or communications distribution pole with a new pole, so long as the new pole is not more than 10 feet taller than the pole it replaces.
(2) For purposes of this subsection:
(A) “Ancillary improvement” shall have the same definition as is established in 30 V.S.A. § 248a(b).
(B) “Communications line” means a wireline or fiber-optic cable communications facility that transmits and receives signals to and from a local, State, national, or international network used primarily for two-way communications for commercial, industrial, municipal, county, or State purposes.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2009, No. 45, § 15c, eff. May 27, 2009; 2011, No. 53, § 14, eff. May 27, 2011; 2011, No. 170 (Adj. Sess.), § 16f, eff. May 18, 2012; 2013, No. 92 (Adj. Sess.), § 272, eff. Feb. 14, 2014; 2013, No. 107 (Adj. Sess.), § 2, eff. April 18, 2014; 2015, No. 64, § 52; 2015, No. 171 (Adj. Sess.), § 19; 2021, No. 54, § 4; 2023, No. 47, § 3, eff. September 1, 2023; 2023, No. 121 (Adj. Sess.), § 8a, eff. January 1, 2028; 2023, No. 181 (Adj. Sess.), § 53, eff. June 17, 2024.)
§ 4414 Zoning; permissible types of regulations
Any of the following types of regulations may be adopted by a municipality in its bylaws in conformance with the plan and for the purposes established in section 4302 of this title.
(1) Zoning districts. A municipality may define different and separate zoning districts, and identify within these districts which land uses are permitted as of right, and which are conditional uses requiring review and approval, including the districts set forth in this subdivision (1).
(A) Downtown, village center, new town center, and growth center districts. The definition or purpose stated for local downtown, village center, new town center, or growth center zoning districts should conform with the applicable definitions in section 2791 of this title. Municipalities may adopt downtown, village center, new town center, or growth center districts without seeking State designation under chapter 76A of this title. A municipality may adopt a manual of graphic or written design guidelines to assist applicants in the preparation of development applications. The following objectives should guide the establishment of boundaries, requirements, and review standards for these districts:
(i) To create a compact settlement oriented toward pedestrian activity and including an identifiable neighborhood center, with consistently higher densities than those found in surrounding districts.
(ii) To provide for a variety of housing types, jobs, shopping, services, and public facilities with residences, shops, workplaces, and public buildings interwoven within the district, all within close proximity.
(iii) To create a pattern of interconnecting streets and blocks, consistent with historic settlement patterns, that encourages multiple routes from origins to destinations.
(iv) To provide for a coordinated transportation system with a hierarchy of appropriately designed facilities for pedestrians, bicycles, public transit, and automotive vehicles.
(v) To provide for natural features and undisturbed areas that are incorporated into the open space of the neighborhood as well as historically compatible squares, greens, landscaped streets, and parks woven into the pattern of the neighborhood.
(vi) To provide for public buildings, open spaces, and other visual features that act as landmarks, symbols, and focal points for community identity.
(vii) To ensure compatibility of buildings and other improvements as determined by their arrangement, building bulk, form, design, character, and landscaping to establish a livable, harmonious, and diverse environment.
(viii) To provide for public and private buildings that form a consistent, distinct edge, are oriented toward streets, and define the border between the public street space and the private block interior.
(B) Agricultural, rural residential, forest, and recreational districts. Where, for the purposes set forth in section 4302 of this title, it is deemed necessary to safeguard certain areas from urban or suburban development and to encourage that development in other areas of the municipality or region, the following districts may be created:
(i) Agricultural or rural residential districts, permitting all types of agricultural uses and prohibiting all other land development except low density residential development.
(ii) Forest districts, permitting commercial forestry and related uses and prohibiting all other land development.
(iii) Recreational districts, permitting camps, ski areas, and related recreational facilities, including lodging for transients and seasonal residents, and prohibiting all other land development except construction of residences for occupancy by caretakers and their families.
(C) Airport hazard area. In accordance with 5 V.S.A. chapter 17, any municipality may adopt special bylaws governing the use of land, location, and size of buildings and density of population within a distance of two miles from the boundaries of an airport under an approach zone and for a distance of one mile from the boundaries of the airport elsewhere. The designation of that area and the bylaws applying within that area shall be in accord with applicable airport zoning guidelines, if any, adopted by the Vermont Transportation Board.
(D) Shorelands.
(i) A municipality may adopt bylaws to regulate shorelands as defined in 10 V.S.A. § 1422 to prevent and control water pollution; preserve and protect wetlands and other terrestrial and aquatic wildlife habitat; conserve the scenic beauty of shorelands; minimize shoreline erosion; reserve public access to public waters; and achieve other municipal, regional, or State shoreland conservation and development objectives.
(ii) Shoreland bylaws may regulate the design and maintenance of sanitary facilities; regulate filling of and other adverse alterations to wetlands and other wildlife habitat areas; control building location; require the provision and maintenance of vegetation; require provisions for access to public waters for all residents and owners of the development; and impose other requirements authorized by this chapter.
(E) Design review districts. Bylaws may contain provisions for the establishment of design review districts. Prior to the establishment of such a district, the planning commission shall prepare a report describing the particular planning and design problems of the proposed district and setting forth a design plan for the areas which shall include recommended planning and design criteria to guide future development. The planning commission shall hold a public hearing, after public notice, on that report. After this hearing, the planning commission may recommend to the legislative body a design review district as a bylaw amendment. A design review district may be created for any area containing structures of historical, architectural, or cultural merit, and other areas in which there is a concentration of community interest and participation such as a central business district, civic center, or a similar grouping or focus of activities. These areas may include townscape areas that resemble in important aspects the earliest permanent settlements, including a concentrated urban settlement with striking vistas, views extending across open fields and up to the forest edge, a central focal point and town green, and buildings of high architectural quality, including styles of the early 19th century. Within such a designated design review district, no structure may be erected, reconstructed, substantially altered, restored, moved, demolished, or changed in use or type of occupancy without approval of the plans by the appropriate municipal panel. A design review board may be appointed by the legislative body of the municipality, in accordance with section 4433 of this title, to advise any appropriate municipal panel.
(F) Local historic districts and landmarks.
(i) Bylaws may contain provisions for the establishment of historic districts and the designation of historic landmarks. Historic districts shall include structures and areas of historic or architectural significance and may include distinctive design or landscape characteristics, areas, and structures with a particular relationship to the historic and cultural values of the surrounding area, and structures whose exterior architectural features bear a significant relationship to the remainder of the structures or to the surrounding area. Bylaws may reference National and State Registers of Historic Places, properties, and districts. A report prepared under section 4441 of this title with respect to the establishment of a local historic district or designation of an historic landmark shall contain a map that clearly delineates the boundaries of the local historic district or landmark, justification for the boundary, a description of the elements of the resources that are integral to its historical, architectural, and cultural significance, and a statement of the significance of the local historic district or landmark.
(ii) With respect to external appearances and other than normal maintenance, no structure within a designated historic district may be rehabilitated, substantially altered, restored, moved, demolished, or changed, and no new structure within an historic district may be erected without approval of the plans therefor by the appropriate municipal panel. The panel shall consider the following in its review of plans submitted:
(I) The historic or architectural significance of the structure, its distinctive characteristics, and its relationship to the historic significance of the surrounding area.
(II) The relationship of the proposed changes in the exterior architectural features of the structure to the remainder of the structure and to the surrounding area.
(III) The general compatibility of the proposed exterior design, arrangement, texture, and materials proposed to be used.
(IV) Any other factors, including the environmental setting and aesthetic factors that the panel deems to be pertinent.
(iii) When an appropriate municipal panel is reviewing an application relating to an historic district, the panel:
(I) Shall be strict in its judgment of plans for those structures deemed to be valuable under subdivision (1)(F)(i) of this section, but is not required to limit new construction, alteration, or repairs to the architectural style of any one period, but may encourage compatible new design.
(II) If an application is submitted for the alteration of the exterior appearance of a structure or for the moving or demolition of a structure deemed to be significant under subdivision (1)(F)(i) of this section, shall meet with the owner of the structure to devise an economically feasible plan for the preservation of the structure.
(III) Shall approve an application only when the panel is satisfied that the proposed plan will not materially impair the historic or architectural significance of the structure or surrounding area.
(IV) In the case of a structure deemed to be significant under subdivision (1)(F)(i) of this section, may approve the proposed alteration despite subdivision (1)(F)(ii)(III) of this section if the panel finds either or both of the following:
(aa) The structure is a deterrent to a major improvement program that will be of clear and substantial benefit to the municipality.
(bb) Retention of the structure would cause undue financial hardship to the owner.
(iv) This subdivision (1)(F), and bylaws issued pursuant to it, shall apply to designation of individual landmarks as well as to designation of local historic districts. A landmark is any individual building, structure, or site that by itself has a special historic, architectural, or cultural value.
(v) The provisions of this subdivision (1)(F) shall not in any way apply to or affect buildings, structures, or land within the “Capitol complex,” as defined in 29 V.S.A. chapter 6.
(G) Buffers. In accordance with section 4424 of this title, a municipality may adopt bylaws to protect buffers, as that term is defined in 10 V.S.A. § 1422, in order to protect public safety; prevent and control water pollution; prevent and control stormwater runoff; preserve and protect wetlands and waterways; maintain and protect natural channel, streambank, and floodplain stability; minimize damage to property and transportation infrastructure; preserve and protect the habitat of terrestrial and aquatic wildlife; promote open space and aesthetics; and achieve other municipal, regional, or State conservation and development objectives for buffers. Buffer bylaws may regulate the design and location of development; control the location of buildings; require the provision and maintenance or reestablishment of vegetation, including no net loss of vegetation; require screening of development or use from waters; reserve existing public access to public waters; and impose other requirements authorized by this chapter.
(2) Overlay districts. Special districts may be created to supplement or modify the zoning requirements otherwise applicable in underlying districts in order to provide supplementary provisions for areas such as shorelands and floodplains, aquifer and source protection areas, ridgelines and scenic features, highway intersection, bypass, and interchange areas, or other features described in section 4411 of this title.
(3) Conditional uses.
(A) In any district, certain uses may be allowed only by approval of the appropriate municipal panel, if general and specific standards to which each allowed use must conform are prescribed in the appropriate bylaws and if the appropriate municipal panel, under the procedures in subchapter 10 of this chapter, determines that the proposed use will conform to those standards. These general standards shall require that the proposed conditional use shall not result in an undue adverse effect on any of the following:
(i) The capacity of existing or planned community facilities.
(ii) The character of the area affected, as defined by the purpose or purposes of the zoning district within which the project is located, and specifically stated policies and standards of the municipal plan.
(iii) Traffic on roads and highways in the vicinity.
(iv) Bylaws and ordinances then in effect.
(v) Utilization of renewable energy resources.
(B) The general standards set forth in subdivision (3)(A) of this section may be supplemented by more specific criteria, including requirements with respect to any of the following:
(i) Minimum lot size.
(ii) Distance from adjacent or nearby uses.
(iii) Performance standards, as under subdivision (5) of this section.
(iv) Criteria adopted relating to site plan review pursuant to section 4416 of this title.
(v) Any other standards and factors that the bylaws may include.
(C) One or more of the review criteria found in 10 V.S.A. § 6086 may be adopted as standards for use in conditional use review.
(D) A multiunit dwelling project consisting of four or fewer units located in a district allowing multiunit dwellings may not be denied solely due to an undue adverse effect on the character of the area affected.
(4) Parking and loading facilities. A municipality may adopt provisions setting forth standards for permitted and required facilities for off-street parking and loading, which may vary by district and by uses within each district. In any district that is served by municipal sewer and water infrastructure that allows residential uses, a municipality shall not require more than one parking space per dwelling unit. However, a municipality may require 1.5 parking spaces for duplexes and multiunit dwellings in areas not served by sewer and water, and in areas that are located more than one-quarter mile away from public parking. The number of parking spaces shall be rounded up to the nearest whole number when calculating the total number of spaces. These bylaws may also include provisions covering the location, size, design, access, landscaping, and screening of those facilities. In determining the number of parking spaces for nonresidential uses and size of parking spaces required under these regulations, the appropriate municipal panel may take into account the existence or availability of employer “transit pass” and rideshare programs, public transit routes, and public parking spaces in the vicinity of the development.
(5) Performance standards. As an alternative or supplement to the listing of specific uses permitted in districts, including those in manufacturing or industrial districts, bylaws may specify acceptable standards or levels of performance that will be required in connection with any use. These bylaws shall specifically describe the levels of operation that are acceptable and not likely to affect adversely the use of the surrounding area by the emission of such dangerous or objectionable elements as noise, vibration, smoke, dust, odor, or other form of air pollution, heat, cold, dampness, electromagnetic, or other disturbance, glare, liquid, or solid refuse or wastes; or create any dangerous, injurious, noxious, fire, explosive, or other hazard. The land planning policies and development bylaws manual prepared pursuant to section 4304 of this title shall contain recommended forms of alternative performance standards, and the assistance of the Agency of Commerce and Community Development shall be available to any municipality that requests aid in the application or enforcement of these bylaws.
(6) Access to renewable energy resources. Any municipality may adopt zoning and subdivision bylaws to encourage energy conservation and to protect and provide access to, among others, the collection or conversion of direct sunlight, wind, running water, organically derived fuels, including wood and agricultural sources, waste heat, and geothermal sources, including those recommendations contained in the adopted municipal plan, regional plan, or both. The bylaw shall establish a standard of review in conformance with the municipal plan provisions required pursuant to subdivision 4382(a)(9) of this title.
(7) Inclusionary zoning. In order to provide for affordable housing, bylaws may require that a certain percentage of housing units in a proposed subdivision, planned unit development, or multi-unit development meets defined affordability standards, which may include lower income limits than contained in the definition of “affordable housing” in subdivision 4303(1) of this title and may contain different affordability percentages than contained in the definition of “affordable housing development” in subdivision 4303(2) of this title. These provisions, at a minimum, shall comply with all the following:
(A) Be in conformance with specific policies of the housing element of the municipal plan.
(B) Be determined from an analysis of the need for affordable rental and sale housing units in the community.
(C) Include development incentives that contribute to the economic feasibility of providing affordable housing units, such as density bonuses, reductions or waivers of minimum lot, dimensional or parking requirements, reductions or waivers of applicable fees, or reductions or waivers of required public or nonpublic improvements.
(D) Require, through conditions of approval, that once affordable housing is built, its availability will be maintained through measures that establish income qualifications for renters or purchasers, promote affirmative marketing, and regulate the price, rent, and resale price of affordable units for a time period specified in the bylaws.
(8) Waivers.
(A) A bylaw may allow a municipality to grant waivers to reduce dimensional requirements, in accordance with specific standards that shall be in conformance with the plan and the goals set forth in section 4302 of this title. These standards may:
(i) allow mitigation through design, screening, or other remedy;
(ii) allow waivers for structures providing for disability accessibility, fire safety, and other requirements of law; and
(iii) provide for energy conservation and renewable energy structures.
(B) If waivers from dimensional requirements are provided, the bylaws shall specify the process by which these waivers may be granted and appealed.
(9) Stormwater management and control. Any municipality may adopt bylaws to implement stormwater management and control consistent with the program developed by the Secretary of Natural Resources pursuant to 10 V.S.A. § 1264. Municipalities shall not charge an impervious surface fee or other stormwater fee under this subdivision or under other provisions of this title on property regulated under the Required Agricultural Practices for discharges of agricultural waste or agricultural nonpoint source pollution.
(10) Time-share projects. The bylaws may require that time-share projects consisting of five or more time-share estates or licenses be subject to development review.
(11) Archaeological resources. A municipality may adopt bylaws for the purpose of regulating archaeological sites and areas that may contain significant archaeological sites to make progress toward attaining the goals in the municipal plan concerning the protection of archaeological sites.
(12) Wireless telecommunications facilities and ancillary improvements. A municipality may adopt bylaws to regulate wireless telecommunications facilities and ancillary improvements in a manner consistent with State or federal law. These bylaws may include requiring the decommissioning or dismantling of wireless telecommunications facilities and ancillary improvements, and may establish requirements that a bond be posted, or other security acceptable to the legislative body, in order to finance facility decommissioning or dismantling activities.
(13)(A) Wastewater and potable water supply systems. A municipality may adopt bylaws that:
(i) prohibit the initiation of construction under a zoning permit unless and until a wastewater and potable water supply permit is issued under 10 V.S.A. chapter 64; or
(ii) establish an application process for a zoning or subdivision permit, under which an applicant may submit a permit application for municipal review, and the municipality may condition the issuance of a final permit upon issuance of a wastewater and potable water supply permit under 10 V.S.A. chapter 64.
(B) For purposes of an appeal of a permit issued under a bylaw adopted under this subdivision (13), the appealable decision of the municipality shall be the issuance or denial of a final zoning or subdivision permit and not the requirement to condition issuance of a permit on issuance of a wastewater and potable water supply permit under 10 V.S.A. chapter 64.
(14) Green development incentives. A municipality may encourage the use of low-embodied energy in construction materials, planned neighborhood developments that allow for reduced use of fuel for transportation, and increased use of renewable technology by providing for regulatory incentives, including increased densities and expedited review.
(15) Solar plants; screening. Notwithstanding any contrary provision of sections 2291a and 4413 of this title or 30 V.S.A. chapter 5 or 89, a municipality may adopt a freestanding bylaw to establish screening requirements that shall apply to a ground-mounted plant that generates electricity from solar energy. In a proceeding under 30 V.S.A. § 248, the municipality may make recommendations to the Public Utility Commission applying the bylaw to such a plant. The bylaw may designate the municipal body to make this recommendation. Screening requirements and recommendations adopted under this subdivision shall be a condition of a certificate of public good issued for the plant under 30 V.S.A. § 248, provided that they do not prohibit or have the effect of prohibiting the installation of such a plant and do not have the effect of interfering with its intended functional use.
(A) Screening requirements under this subdivision shall not be more restrictive than screening requirements applied to commercial development in the municipality under this chapter or, if the municipality does not have other bylaws except flood hazard, 10 V.S.A. chapter 151.
(B) In this section, “plant” shall have the same meaning as in 30 V.S.A. § 8002 and “screening” means reasonable aesthetic mitigation measures to harmonize a facility with its surroundings and includes landscaping, vegetation, fencing, and topographic features.
(C) This subdivision (15) shall not authorize requiring a municipal land use permit for a solar electric generation plant, and a municipal action under this subdivision shall not be subject to the provisions of subchapter 11 (appeals) of this chapter. Notwithstanding any contrary provision of this title, enforcement of a bylaw adopted under this subdivision shall be pursuant to the provisions of 30 V.S.A. § 30 applicable to violations of 30 V.S.A. § 248.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2005, No. 183 (Adj. Sess.), § 5; 2007, No. 32, § 4; 2007, No. 79, § 15; 2007, No. 32, § 4a, eff. May 18, 2007; 2007, No. 79, § 15a, eff. June 9, 2007; 2007, No. 209 (Adj. Sess.), § 11; 2009, No. 110 (Adj. Sess.), § 7; 2009, No. 145 (Adj. Sess.), § 2, eff. June 1, 2010; 2013, No. 147 (Adj. Sess.), § 14, eff. June 1, 2014; 2015, No. 56, § 26d, eff. June 11, 2015; 2019, No. 179 (Adj. Sess.), § 2, eff. Oct. 12, 2020; 2021, No. 182 (Adj. Sess.), § 29, eff. July 1, 2022; 2023, No. 42, § 8, eff. July 1, 2023; 2023, No. 47, § 1, eff. July 1, 2024; 2023, No. 121 (Adj. Sess.), § 8b, eff. July 1, 2024; 2023, No. 181 (Adj. Sess.), § 55, eff. June 17, 2024.)
§ 4414a Cannabis cultivation district
A municipality, after consultation with the municipal cannabis control commission, if one exists, may adopt a bylaw identifying cannabis cultivation districts where the outdoor cultivation of cannabis is preferred within the municipality. Cultivation of cannabis within a cannabis cultivation district shall be presumed not to result in an undue effect on the character of the area affected. The adoption of a cannabis cultivation district shall not have the effect of prohibiting cultivation of outdoor cannabis in the municipality.
(Added 2023, No. 166 (Adj. Sess.), § 17, eff. June 10, 2024.)
§ 4415 Interim bylaws
(a) If a municipality is conducting or has taken action to conduct studies, or has held or is holding a hearing for the purpose of considering a bylaw, a comprehensive plan, or an amendment, extension, or addition to a bylaw or plan, the legislative body may adopt interim bylaws regulating land development in all or a part of the municipality in order to protect the public health, safety, and general welfare and provide for orderly physical and economic growth. These interim bylaws shall be adopted, reenacted, extended, or amended by the legislative body of the municipality after public hearing upon public notice as an emergency measure. They shall be limited in duration to two years from the date they become effective and may be extended or reenacted only in accordance with subsections (f) and (g) of this section. An interim bylaw adopted under this section may be repealed after public hearing, upon public notice by the legislative body. The legislative body, upon petition of five percent of the legal voters filed with the clerk of the municipality, shall hold a public hearing for consideration of amendment or repeal of the interim bylaws.
(b) An interim bylaw adopted, extended, or reenacted under this section may contain any provision authorized under this chapter.
(c) Interim bylaws shall be administered and enforced in accordance with the provisions of this title applicable to the administration and enforcement of permanent bylaws, except that uses other than those permitted by an interim bylaw may be authorized as provided for in subsection (d) of this section.
(d) Under interim bylaws, the legislative body may, upon application, authorize the issuance of permits for any type of land development as a conditional use not otherwise permitted by the bylaw after public hearing preceded by notice in accordance with section 4464 of this title. The authorization by the legislative body shall be granted only upon a finding by the body that the proposed use is consistent with the health, safety, and welfare of the municipality and the standards contained in subsection (e) of this section. The applicant and all abutting property owners shall be notified in writing of the date of the hearing and of the legislative body’s final determination.
(e) In making a determination, the legislative body shall consider the proposed use with respect to all the following:
(1) The capacity of existing or planned community facilities, services, or lands.
(2) The existing patterns and uses of development in the area.
(3) Environmental limitations of the site or area and significant natural resource areas and sites.
(4) Municipal plans and other municipal bylaws, ordinances, or regulations in effect.
(f) The legislative body of the municipality may extend or reenact interim bylaws for a one-year period beyond the initial two-year period authorized by subsection (a) of this section in accordance with the procedures for adoption in that subsection.
(g) A copy of the adopted, amended, reenacted, or extended interim bylaw shall be sent to adjoining towns, to the regional planning commission of the region in which the municipality is located, and to the Agency of Commerce and Community Development.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4416 Site plan review
(a) As prerequisite to the approval of any use other than one- and two-family dwellings, the approval of site plans by the appropriate municipal panel may be required, under procedures set forth in subchapter 10 of this chapter. In reviewing site plans, the appropriate municipal panel may impose, in accordance with the bylaws, appropriate conditions and safeguards with respect to the adequacy of parking, traffic access, and circulation for pedestrians and vehicles; landscaping and screening; the protection of the utilization of renewable energy resources; exterior lighting; the size, location, and design of signs; and other matters specified in the bylaws. The bylaws shall specify the maps, data, and other information to be presented with applications for site plan approval and a review process pursuant to section 4464 of this title.
(b) Whenever a proposed site plan involves access to a State highway or other work in the State highway right-of-way such as excavation, grading, paving, or utility installation, the application for site plan approval shall include a letter from the Agency of Transportation confirming that the Agency has reviewed the proposed site plan and determined whether a permit is required under 19 V.S.A. § 1111. If the Agency determines that a permit for the proposed site plan is required under 19 V.S.A. § 1111, then the letter from the Agency may set out conditions that the Agency proposes to attach to the permit required under 19 V.S.A. § 1111.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2013, No. 167 (Adj. Sess.), § 29; 2021, No. 55, § 36; 2021, No. 184 (Adj. Sess.), § 39, eff. July 1, 2022.)
§ 4417 Planned unit development
(a) Any municipality adopting a bylaw should provide for planned unit developments to permit flexibility in the application of land development regulations for the purposes of section 4302 of this title and in conformance with the municipal plan. The following may be purposes for planned unit development bylaws:
(1) To encourage compact, pedestrian-oriented development and redevelopment, and to promote a mix of residential uses or nonresidential uses, or both, especially in downtowns, village centers, new town centers, and associated neighborhoods.
(2) To implement the policies of the municipal plan, such as the provision of affordable housing.
(3) To encourage any development in the countryside to be compatible with the use and character of surrounding rural lands.
(4) To provide for flexibility in site and lot layout, building design, placement and clustering of buildings, use of open areas, provision of circulation facilities, including pedestrian facilities and parking, and related site and design considerations that will best achieve the goals for the area as articulated in the municipal plan and bylaws within the particular character of the site and its surroundings.
(5) To provide for the conservation of open space features recognized as worthy of conservation in the municipal plan and bylaws, such as the preservation of agricultural land, forest land, trails, and other recreational resources, critical and sensitive natural areas, scenic resources, and protection from natural hazards.
(6) To provide for efficient use of public facilities and infrastructure.
(7) To encourage and preserve opportunities for energy-efficient development and redevelopment.
(b) The application of planned unit development bylaws to a proposed development may:
(1) Involve single or multiple properties and one owner or multiple owners. Procedures for application and review of multiple owners or properties under a common application, if allowed, shall be specified in the bylaws.
(2) Be limited to parcels that have a minimum area specified in the bylaws or a minimum size or number of units.
(3) Be mandatory for land located in specified zoning districts or for projects of a specified type or magnitude as provided in the bylaws.
(c) Planned unit development bylaws adopted pursuant to this section at a minimum shall include the following provisions:
(1) A statement of purpose in conformance with the purposes of the municipal plan and bylaws.
(2) The development review process to be used for review of planned unit developments to include conditional use or subdivision review procedures, or both, as specified in the bylaws.
(3) Specifications, or reference to specifications, for all application documents and plan drawings.
(4) Standards for the review of proposed planned unit developments, which may vary the density or intensity of land use otherwise applicable under the provisions of the bylaws in consideration of and with respect to any of the following:
(A) The location and physical characteristics of the proposed planned unit development.
(B) The location, design, type, and use of the lots and structures proposed.
(C) The amount, location, and proposed use of open space.
(5) Standards requiring related public improvements or nonpublic improvements, or both; and the payment of impact fees, incorporating by reference any development impact fee ordinance adopted pursuant to chapter 131 of this title.
(6) Provisions for the proposed planned unit development to be completed in reasonable phases, in accordance with the municipal plan and any capital budget and program.
(7) Provisions for coordinating the planned unit development review with other applicable zoning or subdivision review processes, specifying the sequence in which the various review standards will be considered.
(8) Reviews that are conducted in accordance with the procedures in subchapter 10 of this chapter.
(d) Planned unit development bylaws may provide for, as part of the standards described in subdivisions (c)(4) and (c)(5) of this section, the authorization of uses, densities, and intensities that do not correspond with or are not otherwise expressly permitted by the bylaws for the area in which a planned unit development is located, provided that the municipal plan contains a policy that encourages mixed use development, development at higher overall densities or intensities, or both.
(e) Standards for the reservation or dedication of common land or other open space for the use or benefit of the residents of the proposed planned unit development shall include provisions for determining the amount and location of that common land or open space, and for ensuring its improvement and maintenance.
(1) The bylaws may provide that the municipality may, at any time, accept the dedication of land or any interest in land for public use and maintenance.
(2) The bylaws may require that the applicant or landowner provide for and establish an organization or trust for the ownership and maintenance of any common facilities or open space, and that this organization or trust shall not be dissolved or revoked nor shall it dispose of any common open space, by sale or otherwise, except to an organization or trust conceived and established to own and maintain the common open space, without first offering to dedicate the same to the municipality or other governmental agency to maintain those common facilities or that open space.
(f) The approval of a proposed planned unit development shall be based on findings by the appropriate municipal panel that the proposed planned unit development is in conformance with the municipal plan and satisfies other requirements of the bylaws.
(g) The appropriate municipal panel may prescribe, from time to time, rules and regulations to supplement the standards and conditions set forth in the zoning bylaws, provided the rules and regulations are not inconsistent with any municipal bylaw. The panel shall hold a public hearing after public notice, as required by section 4464 of this title, prior to the enactment of any supplementary rules and regulations.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4418 Subdivision bylaws
In order to guide community settlement patterns and to ensure the efficient extension of services, utilities, and facilities as land is developed, a municipality may regulate the division of a lot or parcel of land into two or more lots or other division of land for sale, development, or lease. Subdivision bylaws shall establish standards and procedures for approval, modification, or disapproval of plats of land and approval or modification of plats previously filed in the office of the municipal clerk or land records.
(1) Subdivision bylaws shall be administered in accordance with the requirements of subchapter 10 of this chapter and shall contain:
(A) Procedures and requirements for the design, submission, and processing of plats, any drawing and plans, and any other documentation required for review of subdivisions.
(B) Standards for the design and layout of streets, sidewalks, curbs, gutters, streetlights, fire hydrants, landscaping, water, sewage and stormwater management facilities, public and private utilities, and other necessary improvements as may be specified in a municipal plan. Standards in accordance with subdivision 4412(3) of this title shall be required for lots without frontage on or access to public roads or public waters.
(C) Standards for the design and configuration of parcel boundaries and location of associated improvements necessary to implement the municipal plan and achieve the desired settlement pattern for the neighborhood, area, or district in which the subdivision is located.
(D) Standards for the protection of natural resources and cultural features and the preservation of open space, as appropriate in the municipality.
(2) Subdivision bylaws may include:
(A) provisions allowing the appropriate municipal panel to waive or modify, subject to appropriate conditions, the provision of any or all improvements and requirements as in its judgment of the special circumstances of a particular plat or plats are not requisite in the interest of the public health, safety, and general welfare, or are inappropriate because of inadequacy or lack of connecting facilities adjacent or in proximity to the subdivision;
(B) procedures for conceptual, preliminary, partial, and other reviews preceding submission of a subdivision plat, including any administrative reviews;
(C) specific development standards to promote the conservation of energy or to permit the utilization of renewable energy resources, or both;
(D) State standards and criteria under 10 V.S.A. § 6086(a); and
(E) provisions to allow the administrative officer to approve minor subdivisions.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended 2023, No. 47, § 8, eff. July 1, 2023.)
§ 4419 Unified development bylaws
(a) Any bylaws authorized under this chapter may be integrated into a unified land development bylaw that combines the separate requirements into a consolidated review and permitting process. At a minimum, unified development bylaws shall consolidate zoning and subdivision bylaws. Unified development bylaws should incorporate other bylaws in conformance with this chapter and should cross reference all ordinances adopted by a municipality pursuant to authority outside this chapter that affect land development. Unified development bylaws shall provide for an orderly permitting process for all applicable regulations, in accordance with subchapters 10 and 11 of this chapter.
(b) Any municipality that has adopted unified development bylaws in conformance with the requirements of sections 4410, 4411, 4412, 4413, and 4417 of this title shall be deemed to have adopted permanent zoning and subdivision regulations in accordance with 10 V.S.A. § 6001(3).
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4420 Local Act 250 review of municipal impacts
(a) This section shall apply to any municipality in which all of the following have taken place, either at the direction of the legislative body or pursuant to a vote of the municipality’s voters at a duly warned municipal meeting considering the question:
(1) The criteria specified in this section have been adopted in the appropriate bylaws authorized under this chapter.
(2) The municipality’s plan has been duly adopted under the provisions of this chapter.
(3) The municipality has adopted zoning bylaws and subdivision bylaws, either separately or incorporated into one unified development bylaw.
(4) The municipality has adopted, for purposes of this section, the Municipal Administrative Procedure Act established in chapter 36 of this title.
(5) A development review board has been created and has been authorized to undertake local Act 250 review of municipal impacts caused by a development or subdivision, or both, as the terms “development” and “subdivision” are defined in 10 V.S.A. chapter 151.
(b)(1) With respect to developments or subdivisions to which this section applies, the development review board, pursuant to the procedures established in chapter 36 of this title, shall hear such applications as meet the criteria set forth in the bylaws with respect to size or impact, or both, for local Act 250 review of municipal impacts. Once a municipality has determined to conduct reviews under this section, all applicants meeting such criteria for Act 250 permits for developments or subdivisions located within the municipality shall go through this process, unless all the following apply:
(A) The applicant can establish to the satisfaction of the development review board that the applicant relied on a determination by the Land Use Review Board’s local district coordinator that Act 250 jurisdiction did not apply to the development or subdivision in question, and based upon that reliance, the applicant obtained local permits without complying with this section.
(B) The Land Use Review Board’s local district coordinator’s jurisdictional ruling was later reconsidered or overturned on appeal, with the result that Act 250 jurisdiction does apply to the development or subdivision in question.
(C) The development review board waives its jurisdiction under this section in the interest of fairness to the applicant.
(2) Determinations by the development review board regarding whether to waive jurisdiction under this subsection shall not be subject to review.
(c) In proceedings under this section, the applicant shall demonstrate that the proposed development or subdivision:
(1) Will not cause an unreasonable burden on the ability of the municipality to provide educational services.
(2) Will not cause an unreasonable burden on the ability of the municipality to provide municipal or governmental services.
(3) Is in conformance with the plan of the municipality adopted in accordance with this chapter.
(d) A violation of the provisions of this section shall be subject to enforcement as a violation of this chapter.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4421 Official map
A municipality may adopt an official map that identifies future municipal utility and facility improvements, such as road or recreational path rights-of-way, parkland, utility rights-of-way, and other public improvements, in order to provide the opportunity for the community to acquire land identified for public improvements prior to development for other use and to identify the locations of required public facilities for new subdivisions and other development under review by the municipality.
(1) Preparation of an official map. For the purposes of this chapter, the official map shall be based upon the most accurate data available as to the location and width of existing and proposed streets and drainageways and the location of all existing and proposed parks, schools, and other public facilities. Where questions arise in the administration of this section that require more precise determinations of the location of any street right-of-way line on all drainageways or the location of any park, school, or any other public facility, the legislative body shall have a survey prepared of the street or section, park, school, or other public facility in question, that may by resolution of the legislative body become a part of the official map.
(2) Changes to the official map. After adoption of the official map, the recordation of plats that have been approved as provided by this chapter, or the adoption of any urban renewal plan under chapter 85 of this title, shall, without further action, modify the official map accordingly. Minor changes in the location of proposed public facilities may also be made to particular sections of the official map if the change is recommended by a majority of the planning commission and approved by resolution of the legislative body. This process may take place concurrently with review of development or subdivision of a parcel that is proposed to be subject to a map change.
(3) Status of mapped public facilities. The adoption, as part of an official map, of any existing or proposed street or street line or drainageway, or any proposed park, school, or other public facility, shall not constitute a taking or acceptance of land by the municipality, nor shall the adoption of any street in an official map constitute the opening or establishment of the street for public use or obligate the municipality in any way for the maintenance of the street.
(4) Building on properties with mapped public facilities. No zoning permit may be issued for any land development within the lines of any street, drainageway, park, school, or other public facility shown on the official map, except as specifically provided in this section. No person shall recover any damages for the taking for public use of any land development constructed within the lines of any proposed street, drainageway, park, school, or other public facility after it has been included in the official map, and any such land development shall be removed at the expense of the owner.
(A) If a permit for any land development within the lines of any proposed street, drainageway, park, school, or other public facility shown on an official map is denied pursuant to subdivision (5) of this section, the legislative body shall have 120 days from the date of the denial of the permit to institute proceedings to acquire that land or interest in that land, and if no such proceedings are started within that time, the administrative officer shall issue the permit if the application otherwise conforms to all the applicable bylaws.
(B) A municipality may specify in its bylaws that conditional use review is required for any structure within the line of any public facility shown on the official map or within a specified area adjacent to the lines on the map. If conditional use review is required for these structures, the purpose of the review shall be to ensure that the structure is compatible with the location and function of existing and planned public facilities. If the conditional use is denied, the procedure provided in subdivision (4)(A) of this section shall be instituted.
(5) Development review for properties with mapped public facilities. Any application for subdivision or other development review that involves property on which the official map shows a public facility shall demonstrate that the mapped public facility will be accommodated by the proposed subdivision or development in accordance with the municipality’s bylaws. Failure to accommodate the mapped public facility or obtain a minor change in the official map shall result in the denial of the development or subdivision. The legislative body shall have 120 days from the date of the denial of the permit to institute proceedings to acquire that land or interest in land, and if these proceedings are not started within that time, the appropriate municipal panel shall review the application without regard to the proposed public facilities.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4422 Adequate public facilities; phasing
Development may be phased or limited under a bylaw to avoid or mitigate any undue adverse impact on existing or planned community facilities or services. Where a capital budget and program has been adopted, the bylaw may limit or phase development based on the timing of construction or implementation of related necessary public facilities and services, in conformance with an adopted capital budget and program. A municipality also may levy impact fees in accordance with chapter 131 of this title.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4423 Transfer of development rights
(a) In order to accomplish the purposes of 10 V.S.A. § 6301, bylaws may contain provisions for the transfer of development rights. The bylaws shall do all the following:
(1) Specify one or more sending areas for which development rights may be acquired.
(2) Specify one or more receiving areas in which those development rights may be used.
(3) Define the amount of the density increase allowable in receiving areas, and the quantity of development rights necessary to obtain those increases.
(4) Define “density increase” in terms of an allowable percentage decrease in lot size or increase in building bulk, lot coverage, or ratio of floor area to lot size, or any combination.
(5) Define “development rights,” which at minimum shall include a conservation easement, created by deed for a specified period of not less than 30 years, granted to the municipality under 10 V.S.A. chapter 155, limiting land uses in the sending area solely to specified purposes, but including, at a minimum, agriculture and forestry.
(b) Upon approval by the appropriate municipal panel, a zoning permit may be granted for land development based in part upon a density increase, provided there is compliance with all the following:
(1) The area subject to the application is a receiving area, and the density increase is allowed by the provisions relating to transfer of development rights.
(2) The applicant has obtained development rights from a sending area that are sufficient under the regulations for the density increase sought.
(3) The development rights are evidenced by a deed that recites that it is a conveyance under this subdivision and recites the number of acres affected in the sending area.
(4) The sending area from which development rights have been severed has been surveyed and suitably monumented.
(c) The municipality shall maintain a map of areas from which development rights have been severed. Following issuance of a zoning permit under this section, the municipality shall effect all the following:
(1) Ensure that the instruments transferring the conservation easements and the development rights are recorded.
(2) Mark the development rights map showing the area from which development rights have been severed and indicating the book and page in the land records where the easement is recorded.
(d) Failure to record an instrument or mark a map does not invalidate a transfer of development rights. Development rights transferred under this section shall be valid notwithstanding any subsequent failure to file a notice of claim under the Marketable Record Title Act.
(Added 2003, No. 115 (Adj. Sess.), § 95.)
§ 4424 Shorelands; flood or hazard area; special or freestanding bylaws [Effective until January 1, 2028 except as otherwise noted preceding subdivision (a)(2)(B); see also version effective January 1, 2028 set out below]
(a) Bylaws; flood and other hazard areas. Any municipality may adopt freestanding bylaws under this chapter to address particular hazard areas in conformance with the municipal plan, the State Flood Hazard Area Standards or, for the purpose of adoption of a flood hazard area bylaw, a local hazard mitigation plan approved under 44 C.F.R. § 201.6. Such freestanding bylaws may include the following, which may also be part of zoning or unified development bylaws:
(1) Bylaws to regulate development and use along shorelands.
(2) Bylaws to regulate development and use in flood hazard areas or other hazard areas. The following shall apply if flood hazard or other hazard area bylaws are enacted:
(A) Purposes.
(i) To minimize and prevent the loss of life and property, the disruption of commerce, the impairment of the tax base, and the extraordinary public expenditures and demands on public service that result from flooding, landslides, erosion hazards, earthquakes, and other natural or human-made hazards.
(ii) To ensure that the design and construction of development in flood hazard and other hazard areas are accomplished in a manner that minimizes or eliminates the potential for flood and loss or damage to life and property and ensures new development will not adversely affect existing development in a flood hazard area.
(iii) To manage all flood hazard areas designated pursuant to 10 V.S.A. § 753.
(iv) To make the State and municipalities eligible for federal flood insurance and other federal disaster recovery and hazard mitigation funds as may be available.
[Subdivision (a)(2)(B) effective until January 1, 2026; see also subdivision (a)(2)(B) effective January 1, 2026 set out below.]
(B) Contents of bylaws. Except as provided in subsection (c) of this section, flood, river corridor protection area, and other hazard area bylaws may:
(i) Contain standards and criteria that prohibit the placement of damaging obstructions or structures, the use and storage of hazardous or radioactive materials, and practices that are known to further exacerbate hazardous or unstable natural conditions.
(ii) Require flood, fluvial erosion, and hazard protection through elevation, floodproofing, disaster preparedness, hazard mitigation, relocation, or other techniques.
(iii) Require adequate provisions for flood drainage and other emergency measures.
(iv) Require provision of adequate and disaster-resistant water and wastewater facilities.
(v) Establish other restrictions to promote the sound management and use of designated flood, river corridor protection, and other hazard areas.
(vi) Regulate all land development in a flood hazard area, river corridor protection area, or other hazard area, except for development that is regulated under 10 V.S.A. § 754.
[Subdivision (a)(2)(B) effective January 1, 2026; see also subdivision (a)(2)(B) effective until January 1, 2026 set out above.]
(B) Contents of bylaws. Except as provided in subsection (c) of this section, flood hazard, and other hazard area bylaws shall:
(i) Require compliance with the State Flood Hazard Area Standards established by rule pursuant to 10 V.S.A. § 755(c) and meet all additional requirements under the National Flood Insurance Program as set forth in 44 C.F.R. § 60.3.
(ii) Regulate all land development in a flood hazard area or other hazard area, except for development that is regulated under 10 V.S.A. § 754.
(C) Effect on zoning bylaws. hazard or other hazard area bylaws may alter the uses otherwise permitted, prohibited, or conditional in a flood hazard area or other hazard area under a bylaw, as well as the applicability of other provisions of that bylaw. Where a flood hazard bylaw, a hazard area bylaw, or both apply along with any other bylaw, compliance with the flood or other hazard area bylaw shall be prerequisite to the granting of a zoning permit. Where a flood hazard area bylaw or a hazard area bylaw but not a zoning bylaw applies, the flood hazard and other hazard area bylaw shall be administered in the same manner as are zoning bylaws, and a flood hazard area or hazard area permit shall be required for land development covered under the bylaw.
(D) Mandatory provisions.
(i) Except as provided in subsection (c) of this section, all flood hazard and other hazard area bylaws shall provide that no permit for new construction or substantial improvement shall be granted for a flood hazard or other hazard area until after both the following:
(I) a copy of the application is mailed or delivered by the administrative officer or by the appropriate municipal panel to the Agency of Natural Resources or its designee, which may be done electronically, provided the sender has proof of receipt; and
(II) either 30 days have elapsed following the mailing or the Agency or its designee delivers comments on the application.
(ii) The Agency of Natural Resources may delegate to a qualified representative of a municipality with a flood hazard area bylaw or ordinance or to a qualified representative for a regional planning commission the Agency’s authority under this subdivision (a)(2)(D) to review and provide technical comments on a proposed permit for new construction or substantial improvement in a flood hazard area. Comments provided by a representative delegated under this subdivision (a)(2)(D) shall not be binding on a municipality.
(b) Ordinances. A municipality may adopt a flood hazard area or other hazard area regulation that meets the requirements of this section by ordinance under subdivision 2291(25) of this title.
(c) Permit; planting projects.
(1) As used in this subsection, “planting project” means planting vegetation to restore natural and beneficial floodplain functions, as defined in 42 U.S.C. § 4121(a), that include floodwater storage, water quality improvement, and supporting riparian and aquatic habitat.
(2) By operation of this subsection, a planting project in a flood or other hazard area or river corridor protection area is considered to have a permit under this chapter unless the project is:
(A) part of a larger undertaking that includes the construction or installation of structures, the creation of earthen berms or banks, or physical disturbance of land or water other than necessary for planting vegetation; or
(B) a forestry operation or part of a forestry operation as defined in 10 V.S.A. § 2602 and exempt from municipal regulation under subsection 4413(d) of this title.
(3) Notwithstanding any contrary provision of this chapter or municipal bylaw or ordinance, a planting project considered to have a permit by operation of this subsection shall not be required to file an application to obtain a permit under this chapter or approval under a municipal ordinance or to obtain the issuance of such a permit or approval by the municipality.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended by 2011, No. 138 (Adj. Sess.), § 13, eff. May 14, 2012; 2013, No. 34, § 15; 2017, No. 4, § 1, eff. March 6, 2017; 2017, No. 197 (Adj. Sess.), § 16; 2023, No. 121 (Adj. Sess.), § 9, eff. January 1, 2026.)
§ 4424 Shorelands; flood or hazard area; special or freestanding bylaws [Effective January 1, 2028; see also version effective until January 1, 2028 set out above]
(a) Bylaws; flood and other hazard areas. Any municipality may adopt freestanding bylaws under this chapter to address particular hazard areas in conformance with the municipal plan, the State Flood Hazard Area Standards or, for the purpose of adoption of a flood hazard area bylaw, a local hazard mitigation plan approved under 44 C.F.R. § 201.6. Such freestanding bylaws may include the following, which may also be part of zoning or unified development bylaws:
(1) Bylaws to regulate development and use along shorelands.
(2) Bylaws to regulate development and use in flood hazard areas or other hazard areas. The following shall apply if flood hazard or other hazard area bylaws are enacted:
(A) Purposes.
(i) To minimize and prevent the loss of life and property, the disruption of commerce, the impairment of the tax base, and the extraordinary public expenditures and demands on public service that result from flooding, landslides, erosion hazards, earthquakes, and other natural or human-made hazards.
(ii) To ensure that the design and construction of development in flood hazard and other hazard areas are accomplished in a manner that minimizes or eliminates the potential for flood and loss or damage to life and property and ensures new development will not adversely affect existing development in a flood hazard area.
(iii) To manage all flood hazard areas designated pursuant to 10 V.S.A. § 753.
(iv) To make the State and municipalities eligible for federal flood insurance and other federal disaster recovery and hazard mitigation funds as may be available.
(B) Contents of bylaws. Except as provided in subsection (c) of this section, flood hazard and other hazard area bylaws shall:
(i) Require compliance with the State Flood Hazard Area Standards established by rule pursuant to 10 V.S.A. § 755(c) and meet all additional requirements under the National Flood Insurance Program as set forth in 44 C.F.R. § 60.3.
(ii) Regulate all land development in a flood hazard area or other hazard area, except for development that is regulated under 10 V.S.A. § 754.
(C) Effect on zoning bylaws. hazard or other hazard area bylaws may alter the uses otherwise permitted, prohibited, or conditional in a flood hazard area or other hazard area under a bylaw, as well as the applicability of other provisions of that bylaw. Where a flood hazard bylaw, a hazard area bylaw, or both apply along with any other bylaw, compliance with the flood or other hazard area bylaw shall be prerequisite to the granting of a zoning permit. Where a flood hazard area bylaw or a hazard area bylaw but not a zoning bylaw applies, the flood hazard and other hazard area bylaw shall be administered in the same manner as are zoning bylaws, and a flood hazard area or hazard area permit shall be required for land development covered under the bylaw.
(D)(i) Mandatory provisions. Except as provided in subsection (c) of this section, all flood hazard and other hazard area bylaws shall provide that no permit for new construction or substantial improvement shall be granted for a flood hazard or other hazard area until after both the following:
(I) a copy of the application is mailed or delivered by the administrative officer or by the appropriate municipal panel to the Agency of Natural Resources or its designee, which may be done electronically, provided the sender has proof of receipt; and
(II) either 30 days have elapsed following the mailing or the Agency or its designee delivers comments on the application.
(ii) The Agency of Natural Resources may delegate to a qualified representative of a municipality with a flood hazard area bylaw or ordinance or to a qualified representative for a regional planning commission the Agency’s authority under this subdivision (a)(2)(D) to review and provide technical comments on a proposed permit for new construction or substantial improvement in a flood hazard area. Comments provided by a representative delegated under this subdivision (a)(2)(D) shall not be binding on a municipality.
(b) Ordinances. A municipality may adopt a flood hazard area or other hazard area regulation that meets the requirements of this section by ordinance under subdivision 2291(25) of this title.
(c) Permit; planting projects.
(1) As used in this subsection, “planting project” means planting vegetation to restore natural and beneficial floodplain functions, as defined in 42 U.S.C. § 4121(a), that include floodwater storage, water quality improvement, and supporting riparian and aquatic habitat.
(2) By operation of this subsection, a planting project in a flood or other hazard area or river corridor protection area is considered to have a permit under this chapter unless the project is:
(A) part of a larger undertaking that includes the construction or installation of structures, the creation of earthen berms or banks, or physical disturbance of land or water other than necessary for planting vegetation; or
(B) a forestry operation or part of a forestry operation as defined in 10 V.S.A. § 2602 and exempt from municipal regulation under subsection 4413(d) of this title.
(3) Notwithstanding any contrary provision of this chapter or municipal bylaw or ordinance, a planting project considered to have a permit by operation of this subsection shall not be required to file an application to obtain a permit under this chapter or approval under a municipal ordinance or to obtain the issuance of such a permit or approval by the municipality.
(Added 2003, No. 115 (Adj. Sess.), § 95; amended by 2011, No. 138 (Adj. Sess.), § 13, eff. May 14, 2012; 2013, No. 34, § 15; 2017, No. 4, § 1, eff. March 6, 2017; 2017, No. 197 (Adj. Sess.), § 16; 2023, No. 121 (Adj. Sess.), § 9, eff. January 1, 2026; 2023, No. 121 (Adj. Sess.), § 9, eff. January 1, 2028.)
§§ 4425, 4426 Repealed
[Repealed]
2003, No. 115 (Adj. Sess.), § 119(c).
§ 4427 Persons eligible to apply for permits
Municipalities and solid waste management districts empowered to condemn property or an interest in property may apply for any permit required by any zoning regulation adopted under this chapter.
(Added 1991, No. 109, § 5, eff. June 28, 1991.)
§ 4428 Parking bylaws
(a) Parking regulation. Consistent with section 4414 of this title and with this section, a municipality may regulate parking.
(b) Parking space size standards. For the purpose of residential parking, a municipality shall define a standard parking space as not larger than nine feet by 18 feet, however a municipality may allow a portion of parking spaces to be smaller for compact cars or similar use. A municipality may require a larger space wherever American with Disabilities Act-compliant spaces are required.
(c) Existing nonconforming parking. A municipality shall allow an existing nonconforming parking space to count toward the parking requirement of an existing residential building if new residential units are added to the building.
(d) Adjacent lots. A municipality may allow a person with a valid legal agreement for use of parking spaces in an adjacent or nearby lot to count toward the parking requirement of a residential building.
(Added 2023, No. 181 (Adj. Sess.), § 54, eff. June 17, 2024.)
Subchapter 8 Nonregulatory Implementation of the Municipal Plan
§ 4430 Capital budget and program
(a) A capital budget shall list and describe the capital projects to be undertaken during the coming fiscal year, the estimated cost of those projects, and the proposed method of financing. A capital program is a plan of capital projects proposed to be undertaken during each of the following five years, the estimated cost of those projects, and the proposed method of financing. A capital project is any one or more of the following:
(1) Any physical betterment or improvement, including furnishings, machinery, apparatus, or equipment for that physical betterment or improvement when first constructed or acquired.
(2) Any preliminary studies and surveys relating to any physical betterment or improvement.
(3) Land or rights in land.
(4) Any combination of subdivisions (1), (2), and (3) of this subsection.
(b) The capital budget and program shall be arranged to indicate the order of priority of each capital project and to state for each project all the following:
(1) A description of the proposed project and the estimated total cost of the project.
(2) The proposed method of financing, indicating the amount proposed to be financed by direct budgetary appropriation or duly established reserve funds; the amount, if any, estimated to be received from the federal or State governments; the amount, if any, to be financed by impact fees; and the amount to be financed by the issuance of obligations, showing the proposed type or types of obligations, together with the period of probable usefulness for which they are proposed to be issued.
(3) An estimate of the effect, if any, upon operating costs of the municipality.
(c) The planning commission may submit recommendations annually to the legislative body for the capital budget and program, that shall be in conformance with the municipal plan.
(Added 2003, No. 115 (Adj. Sess.), § 97.)
§ 4431 Purchase or acceptance of development rights
A municipality may develop a program for purchase or acceptance of development rights and stewardship of those rights for the purposes set forth in section 4302 of this title and in conformance with the plan.
(Added 2003, No. 115 (Adj. Sess.), § 97.)
§ 4432 Supporting plans
A municipality may adopt a plan or plans that support the municipal plan and may incorporate such supporting plan or plans into the municipal plan in the same manner as adoption of the municipal plan set forth in section 4385 of this title. In this event, the supporting plan shall become a part of the municipal plan. Supporting plans may include:
(1) Access management plan. A municipality may adopt an access management plan to manage traffic and access onto public roads from adjacent property in a manner that complies with 19 V.S.A. § 1111.
(2) Downtown, village center, or new town center plan. A municipality may adopt a plan for the development and revitalization of its downtown, villages, or a new town center, consistent with the purposes set forth in section 2790 of this title.
(3) Open space plan. A municipality may adopt a plan to guide public and private conservation strategies.
(Added 2003, No. 115 (Adj. Sess.), § 97.)
§ 4433 Advisory commissions and committees
Municipalities may at any time create one or more advisory commissions, which for the purposes of this chapter include committees, or a combination of advisory commissions to assist the legislative body or the planning commission in preparing, adopting, and implementing the municipal plan. Advisory commissions authorized under this section and under chapter 118 of this title may advise appropriate municipal panels, applicants, and interested parties in accordance with the procedures established under section 4464 of this title.
(1) Creation of an advisory commission. Advisory commissions not authorized in chapter 118 of this title shall be created as follows:
(A) An advisory commission may be created at any time when a municipality votes to create one, or through adoption of bylaws, or when the legislative body of the municipality votes to create one.
(B) An advisory commission shall have no fewer than three members. All members should be residents of the municipality, except that historic preservation or design advisory commissions may be composed of professional and lay members, a majority of whom shall reside within the municipality creating the commission.
(C) Members of the advisory commission shall be appointed, and any vacancy filled, by the legislative body of the municipality. The term of each member shall be as established by the legislative body, except for those first appointed, whose terms shall be varied in length so that in the future the number whose terms expire in each successive year shall be minimized. Any appointment to fill a vacancy shall be for the unexpired term.
(D) Any member of an advisory commission may be removed at any time for just cause by vote of the legislative body, for reasons given to the member in writing, and after a public hearing on the issue if the member so requests.
(2) Procedures for advisory commissions. Advisory commissions not authorized in chapter 118 of this title shall establish the following procedures:
(A) At its organizational meeting, an advisory commission shall adopt by majority vote of those present and voting such rules as it deems necessary and appropriate for the performance of its functions. It shall annually elect a chair and a clerk.
(B) Times and places of meetings of an advisory commission shall be publicly posted in the municipality, and its meetings shall be open to the public in accordance with the terms of the Open Meeting Law set forth in 1 V.S.A. chapter 5, subchapter 2.
(C) The advisory commission shall keep a record of its transactions that shall be filed with the town clerk as a public record of the municipality.
(D) The advisory commission shall comply with ethical policies or ordinances as adopted by the town.
(3) Duties and powers of historic preservation commissions. In addition to the requirements set forth in subdivision (2) of this section, all historic preservation commissions shall comply with all the following:
(A) To the extent possible, have among their members professionals in the fields of historic preservation, history, architecture, archaeology, and related disciplines.
(B) Meet no fewer than four times each year and maintain an attendance rule for commission members.
(C) Have responsibilities set forth in a written document approved by a majority vote of the local legislative body at a regular or special meeting that may include:
(i) Preparation of reports and recommendations on standards for the planning commission in creating a local historic district bylaw under this chapter.
(ii) Advising and assisting the legislative body, planning commission, and other entities on matters related to historic preservation.
(iii) Advising the appropriate municipal panel and administrative officer in development review and enforcement pursuant to subdivision 4414(1)(F) and section 4464 of this title.
(iv) If provided in the bylaw, advising and assisting the legislative body, appropriate municipal panel, and administrative officer in creating and administering a design review district or downtown or village center district pursuant to subdivision 4414(1)(A) or (E) of this title.
(v) If provided in a bylaw developed in cooperation with the Division for Historic Preservation, those procedural and advisory powers required of a Certified Local Government under the National Historic Preservation Act.
(4) Powers and duties of design review commissions. In addition to the requirements set forth in subdivision (2) of this section, all design review commissions shall:
(A) To the extent possible, have among their members professionals in the fields of architecture, landscape architecture, urban planning, historic preservation, and related disciplines.
(B) Have responsibilities identified by the legislative body that may include:
(i) Preparation of reports and standards for the planning commission in creating a design review district bylaw under this chapter.
(ii) Advising and assisting the legislative body, planning commission, and other entities on design-related matters in the creation of plans and bylaws and planning for public improvements.
(iii) Advising appropriate municipal panels and the administrative officer in development review and enforcement pursuant to subdivisions 4414(1)(E) and (F) and section 4464 of this title.
(5) Powers and duties of housing commissions. In addition to the requirements set forth in subdivision (2) of this section, housing commissions may have responsibilities identified by the local legislative body that include:
(A) Making an inventory of the current stock of housing units in the municipality and identify any gaps in the housing stock according to household incomes or special needs of the community. The inventory may include documentation of the affordable housing cost index for an average citizen of the municipality, the average cost of rental units and vacancy rates, and the annual average sales price of homes.
(B) Reviewing the zoning ordinances, subdivision bylaws, building codes, and the development review process of the municipality, make recommendations to facilitate the development of affordable housing in the municipality, and promote bylaws that increase densities for the purpose of providing affordable housing.
(C) Assisting the local appropriate municipal panels pursuant to section 4464 of this title and the District Environmental Commission by providing advisory testimony on the housing needs of the municipality, where pertinent to applications made to those bodies, for permits for development.
(D) Cooperating with the local legislative body, planning commission, zoning board of adjustment, road committee, or other municipal or private organizations on matters affecting housing resources of the municipality. This may include working with the municipality on a wastewater and water allocation policy that reserves a percentage of the capacity for future affordable housing.
(E) Collaborating with not-for-profit housing organizations, government agencies, developers, and builders in pursuing options to meet the housing needs of the local residents.
(Added 2003, No. 115 (Adj. Sess.), § 97; amended 2013, No. 162 (Adj. Sess.), § 8.)
Subchapter 9 Adoption, Administration, and Enforcement
§ 4440 Administration; finance
(a) Appropriations may be made by any municipality to finance the work of planning commissions, regional planning commissions, administrative officers, appropriate municipal panels, and other officials in the preparation, adoption, administration, and enforcement of development plans and supporting plans, bylaws, capital budgets and programs, and other regulatory and nonregulatory efforts to implement the municipal plan, and to support or oppose, upon appeal to the courts, decisions of an appropriate municipal panel. For these same purposes, any municipality may accept gifts and grants of money and services from private sources and from the State and federal governments.
(b) The legislative body may prescribe reasonable fees to be charged with respect to the administration of bylaws and for the administration of development review. These fees may include the cost of posting and publishing notices and holding public hearings and the cost of conducting periodic inspections during the installation of public improvements. These fees may be required to be payable by the applicant upon submission of the application or prior to issuance of permits or certificates of occupancy.
(c) The legislative body may set reasonable fees for filing of notices of appeal and for other acts as it deems proper, the payment of which shall be a condition to the validity of the filing or act under this chapter.
(d) The legislative body may establish procedures and standards for requiring an applicant to pay for reasonable costs of an independent technical review of the application.
(Added 2003, No. 115 (Adj. Sess.), § 99.)
§ 4441 Preparation of bylaws and regulatory tools; amendment or repeal
(a) A municipality may have one or more bylaws. Any bylaw for a municipality shall be prepared by or at the direction of the planning commission of the municipality and shall have the purpose of implementing the plan. An amendment or repeal of a bylaw may be prepared by the planning commission or by any other person or body.
(b) A proposed amendment or repeal prepared by a person or body other than the planning commission shall be submitted in writing along with any supporting documents to the planning commission. The planning commission may then proceed under this subchapter as if the amendment or repeal had been prepared by the commission. However, if the proposed amendment or repeal of a bylaw is supported by a petition signed by not less than five percent of the voters of the municipality, the commission shall correct any technical deficiency and shall, without otherwise changing the amendment or repeal, promptly proceed in accordance with subsections (c) through (g) of this section, as if it had been prepared by the commission.
(c) When considering an amendment to a bylaw, the planning commission shall prepare and approve a written report on the proposal. A single report may be prepared so as to satisfy the requirements of this subsection concerning bylaw amendments and subsection 4384(c) of this title concerning plan amendments. The report shall provide a brief explanation of the proposed bylaw, amendment, or repeal and shall include a statement of purpose as required for notice under section 4444 of this title and shall include findings regarding how the proposal:
(1) conforms with or furthers the goals and policies contained in the municipal plan, including the effect of the proposal on the availability of safe and affordable housing, and sections 4412, 4413, and 4414 of this title;
(2) is compatible with the proposed future land uses and densities of the municipal plan; and
(3) carries out, as applicable, any specific proposals for any planned community facilities.
(d) The planning commission shall hold at least one public hearing within the municipality after public notice on any proposed bylaw, amendment, or repeal.
(e) At least 15 days prior to the first hearing, a copy of the proposed bylaw, amendment, or repeal and the written report shall be delivered physically or electronically with proof of receipt or mailed by certified mail, return receipt requested, to each of the following:
(1) The chair of the planning commission of each abutting municipality, or in the absence of any planning commission in a municipality, the clerk of that abutting municipality.
(2) The executive director of the regional planning commission of the area in which the municipality is located.
(3) The Department of Housing and Community Development within the Agency of Commerce and Community Development.
(f) Any of the bodies identified in subsection (e) of this section, or their representatives, may submit comments on the proposed bylaw, amendment, or repeal to the planning commission, or may appear and be heard in any proceeding with respect to the adoption of the proposed bylaw, amendment, or repeal.
(g) The planning commission may make revisions to a proposed bylaw, amendment, or repeal and to the written report, and shall then submit the proposed bylaw, amendment, or repeal and the written report to the legislative body of the municipality. However, if requested by the legislative body or if a proposed amendment was supported by a petition signed by not less than five percent of the voters of the municipality, the planning commission shall promptly submit the amendment, with changes only to correct technical deficiencies, to the legislative body of the municipality, together with any recommendation or opinion it considers appropriate. Simultaneously with the submission, the planning commission shall file with the clerk of the municipality a copy of the proposed bylaw, amendment, or repeal, and the written report for public review.
(h) Upon adoption or amendment of a bylaw, the planning commission shall prepare an adoption report in form and content provided by the Department of Housing and Community Development that:
(1) confirms that zoning districts’ GIS data has been submitted to the Department and that the data complies with the Vermont Zoning GIS Data Standard adopted pursuant to 10 V.S.A. § 123;
(2) confirms that the complete bylaw has been uploaded to the Municipal Plan and Bylaw Database;
(3) demonstrates conformity with sections 4412, 4413, and 4414 of this title; and
(4) provides information on the municipal application of subchapters 7 (bylaws), 9 (administration), and 10 (panels) of this chapter for the Municipal Planning Data Center and the prospective development of a statewide zoning atlas.
(Added 2003, No. 115 (Adj. Sess.), § 100; amended 2017, No. 197 (Adj. Sess.), § 17; 2023, No. 47, § 5, eff. July 1, 2023.)
§ 4442 Adoption of bylaws and related regulatory tools; amendment or repeal
(a) Public hearings. Not less than 15 nor more than 120 days after a proposed bylaw, amendment, or repeal is submitted to the legislative body of a municipality under section 4441 of this title, the legislative body shall hold the first of one or more public hearings, after public notice, on the proposed bylaw, amendment, or repeal, and shall make copies of the proposal and the written report of the planning commission available to the public upon request. Failure to hold a hearing within the 120 days shall not invalidate the adoption of the bylaw or amendment or the validity of any repeal.
(b) Amendment of proposal. The legislative body may make minor changes to the proposed bylaw, amendment, or repeal, but shall not do so less than 14 days prior to the final public hearing. If the legislative body at any time makes substantial changes in the concept, meaning, or extent of the proposed bylaw, amendment, or repeal, it shall warn a new public hearing or hearings under subsection (a) of this section. If any part of the proposal is changed, the legislative body at least 10 days prior to the hearing shall file a copy of the changed proposal with the clerk of the municipality and with the planning commission. The planning commission shall amend the report prepared pursuant to subsection 4441(c) of this title to reflect the changes made by the legislative body and shall submit that amended report to the legislative body at or prior to the public hearing.
(c) Routine adoption. A bylaw, bylaw amendment, or bylaw repeal shall be adopted by a majority of the members of the legislative body at a meeting that is held after the final public hearing, and shall be effective 21 days after adoption unless, by action of the legislative body, the bylaw, bylaw amendment, or bylaw repeal is warned for adoption by the municipality by Australian ballot at a special or regular meeting of the municipality.
(d) Petition for popular vote. Notwithstanding subsection (c) of this section, a vote by the legislative body on a bylaw, amendment, or repeal shall not take effect if five percent of the voters of the municipality petition for a meeting of the municipality to consider the bylaw, amendment, or repeal, and the petition is filed within 20 days of the vote. In that case, a meeting of the municipality shall be duly warned for the purpose of acting by Australian ballot upon the bylaw, amendment, or repeal.
(e) Multipurpose hearings. Nothing contained in this chapter shall be construed to prohibit any public hearing held under this chapter to be held for more than one purpose under this chapter. A municipality may prepare and adopt a plan, one or more bylaws, and a capital budget and program in the same proceedings. However, all the provisions of this chapter applicable to each purpose of the hearing shall be complied with.
(f) Unorganized towns and gores. A bylaw, amendment, or repeal of a bylaw of an unorganized town or gore shall be adopted by a majority of votes cast at a meeting of the regional planning commission in which the unorganized town or gore is located at which a quorum is present. However, a bylaw, amendment, or repeal of a bylaw of the unified towns and gores of Essex County, namely Averill, Avery’s Gore, Ferdinand, Lewis, Warner’s Grant, and Warren’s Gore, shall be adopted by the board of governors.
(g) Time for action. If the proposed bylaw, amendment, or repeal is not approved or rejected under subsection (c) of this section within one year of the date of the final hearing of the planning commission, it shall be considered disapproved unless five percent of the voters of the municipality petition for a meeting of the municipality to consider the bylaw, amendment, or repeal, and the petition is filed within 60 days of the end of that year. In that case, a meeting of the municipality shall be duly warned for the purpose of acting upon the bylaw, amendment, or repeal by Australian ballot.
(Added 2003, No. 115 (Adj. Sess.), § 100; amended 2005, No. 30, § 2; 2005, No. 105 (Adj. Sess.), § 1, eff. April 5, 2006; 2007, No. 121 (Adj. Sess.), § 20; 2011, No. 155 (Adj. Sess.), § 15; 2023, No. 47, § 13, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 329, eff. July 1, 2024.)
§ 4443 Adoption, amendment, or repeal of capital budget and program
(a) Notwithstanding any other provision of this chapter, a capital budget and program may be adopted, amended, or repealed by the legislative body of a municipality following one or more public hearings, upon public notice, if a utility and facilities plan as described in subdivision 4382(a)(4) of this title has been adopted by the legislative body in accordance with sections 4384 and 4385 of this title. A copy of the proposed capital budget and program shall be filed at least 15 days prior to the final public hearing with the clerk of the municipality and the secretary of the planning commission. The planning commission may submit a report on the proposal to the legislative body prior to the public hearing.
(b) The capital budget and program, or its amendment or repeal, shall be adopted or rejected by an act of the legislative body of a municipality promptly after the final public hearing held under subsection (a) of this section.
(Added 2003, No. 115 (Adj. Sess.), § 100.)
§ 4444 Public hearing notice for adoption, amendment, or repeal of bylaw and other regulatory tools
(a) Any public notice required for public hearing under this subchapter shall be given not less than 15 days prior to the date of the public hearing by:
(1) the publication of the date, place, and purpose of the hearing in a newspaper of general circulation in the municipality affected;
(2) the posting of the same information in three or more public places within the municipality in conformance with location requirements of 1 V.S.A. § 312(c)(2); and
(3) compliance with subsection (b) or (c) of this section.
(b) A municipality may complete public notice commenced under subsection (a) of this section by publishing and posting the full text of the proposed material or by publishing and posting the following:
(1) A statement of purpose.
(2) A map or description of the geographic areas affected.
(3) A table of contents or list of section headings.
(4) A description of a place within the municipality where the full text may be examined.
(c) As an alternative to the publication and posting provisions established under subsection (b) of this section, a municipality may make reasonable effort to mail or deliver copies of the full text or the material specified in subdivisions (b)(1) through (4) of this section, together with the public hearing notice of the proposed material and the public hearing notice to each voter, as evidenced by the voter checklist of the municipality, and to each owner of land within the municipality, as evidenced by the grand list of the municipality.
(d) No defect in the form or substance of any public hearing notice under this chapter shall invalidate the adoption, amendment, or repeal of any plan, bylaw, or capital budget and program. However, the action shall be invalidated if the notice is materially misleading in content or fails to include one of the elements required by subsection (b) of this section or if the defect was the result of a deliberate or intentional act.
(Added 2003, No. 115 (Adj. Sess.), § 100.)
§ 4445 Availability and distribution of documents
Current copies of plans, bylaws, and capital budgets and programs shall be available to the public during normal business hours in the office of the clerk of any municipality in which those plans, bylaws, or capital budgets or programs have been adopted. The municipality shall provide all final adopted bylaws, amendments, or repeals to the regional planning commission of the area in which the municipality is located and to the Department of Commerce and Community Development, which may be done electronically, provided the sender has proof of receipt.
(Added 2003, No. 115 (Adj. Sess.), § 100; amended 2017, No. 197 (Adj. Sess.), § 18.)
§ 4445a Repealed
[Repealed]
2003, No. 115 (Adj. Sess.), § 119(c).
§ 4446 Bylaws; effect of adoption
Within the jurisdiction of any municipality that has adopted any of the bylaws authorized by this chapter, no land development may be undertaken or effected except in conformance with those bylaws. Bylaws authorized by this chapter may specify for exclusion from review any land development determined to impose no impact or merely a de minimus impact on the surrounding area and the overall pattern of land development.
(Added 2003, No. 115 (Adj. Sess.), § 100.)
§ 4447 Clerk’s certificate
A certificate of the clerk of a municipality showing the publication, posting, consideration, and adoption or amendment of a plan, bylaw, or capital budget or program shall be presumptive evidence of the facts as they relate to the lawful adoption or amendment of that plan, bylaw, or capital budget or program, so stated in any action or proceeding in court or before any board, commission, or other tribunal.
(Added 2003, No. 115 (Adj. Sess.), § 100.)
§ 4448 Appointment and powers of administrative officer
(a) An administrative officer, who may hold any other office in the municipality other than membership in the board of adjustment or development review board, shall be nominated by the planning commission and appointed by the legislative body for a term of three years promptly after the adoption of the first bylaws or when a vacancy exists. The compensation of the administrative officer shall be fixed under sections 932 and 933 of this title, and the officer shall be subject to the personnel rules of the municipality adopted under sections 1121 and 1122 of this title. The administrative officer shall administer the bylaws literally and shall not have the power to permit any land development that is not in conformance with those bylaws. An administrative officer may be removed for cause at any time by the legislative body after consultation with the planning commission.
(b) The planning commission may nominate and the legislative body may appoint an acting administrative officer who shall have the same duties and responsibilities as the administrative officer in the administrative officer’s absence. If an acting administrative officer position is established, or, for municipalities that establish the position of assistant administrative officer, there shall be clear policies regarding the authority of the administrative officer in relation to the acting or assistant officer.
(c) The administrative officer should provide an applicant with forms required to obtain any municipal permit or other municipal authorization required under this chapter, or under other laws or ordinances that relate to the regulation by municipalities of land development. If other municipal permits or authorizations are required, the administrative officer should coordinate a unified effort on behalf of the municipality in administering its development review programs. The administrative officer should inform any person applying for municipal permits or authorizations that the person should contact the regional permit specialist employed by the Agency of Natural Resources in order to assure timely action on any related State permits; nevertheless, the applicant retains the obligation to identify, apply for, and obtain relevant State permits.
(d) If the administrative officer fails to act with regard to a complete application for a permit within 30 days, whether by issuing a decision or by making a referral to the appropriate municipal panel, a permit shall be deemed issued on the 31st day.
(Added 2003, No. 115 (Adj. Sess.), § 100.)
§ 4449 Zoning permit, certificate of occupancy, and municipal land use permit
(a) Within any municipality in which any bylaws have been adopted:
(1) No land development may be commenced within the area affected by the bylaws without a permit issued by the administrative officer. No permit may be issued by the administrative officer except in conformance with the bylaws. When an application for a municipal land use permit seeks approval of a structure, the administrative officer shall provide the applicant with a copy of the applicable building energy standards under 30 V.S.A. §§ 51 (residential building energy standards) and 53 (commercial building energy standards). However, the administrative officer need not provide a copy of the standards if the structure is a sign or a fence or the application certifies that the structure will not be heated or cooled. In addition, the administrative officer may provide a copy of the Vermont Residential Building Energy Code Book published by the Department of Public Service in lieu of the full text of the residential building energy standards.
(2) If the bylaws so adopted so provide, it shall be unlawful to use or occupy or permit the use or occupancy of any land or structure, or part thereof, created, erected, changed, converted, or wholly or partly altered or enlarged in its use or structure after the effective date of this chapter, within the area affected by those bylaws, until a certificate of occupancy is issued therefor by the administrative officer, stating that the proposed use of the structure or land conforms to the requirements of those bylaws. Provision of a certificate as required by 30 V.S.A. § 51 (residential building energy standards) or 53 (commercial building energy standards) shall be a condition precedent to the issuance of any such certificate of occupancy.
(3) No permit issued pursuant to this section shall take effect until the time for appeal in section 4465 of this title has passed, or in the event that a notice of appeal is properly filed, no such permit shall take effect until adjudication of that appeal by the appropriate municipal panel is complete and the time for taking an appeal to the Environmental Division has passed without an appeal being taken. If an appeal is taken to the Environmental Division, the permit shall not take effect until the Environmental Division rules in accordance with 10 V.S.A. § 8504 on whether to issue a stay, or until the expiration of 15 days, whichever comes first.
(4) No municipal land use permit issued by an appropriate municipal panel or administrative officer, as applicable, for a site plan or conditional use shall be considered abandoned or expired unless more than two years have passed since the permit approval was issued.
(b) Each permit issued under this section shall contain a statement of the period of time within which an appeal may be taken and shall require posting of a notice of permit on a form prescribed by the municipality within view from the public right-of-way most nearly adjacent to the subject property until the time for appeal in section 4465 of this title has passed. Within three days following the issuance of a permit, the administrative officer shall:
(1) deliver a copy of the permit to the listers of the municipality; and
(2) post a copy of the permit in at least one public place in the municipality until the expiration of 15 days from the date of issuance of the permit.
(c)(1) Within 30 days after a municipal land use permit has been issued or within 30 days of the issuance of any notice of violation, the appropriate municipal official shall:
(A) deliver the original or a legible copy of the municipal land use permit or notice of violation or a notice of municipal land use permit generally in the form set forth in subsection 1154(c) of this title to the town clerk for recording as provided in subsection 1154(a) of this title; and
(B) file a copy of that municipal land use permit in the offices of the municipality in a location where all municipal land use permits shall be kept.
(2) The municipal officer may charge the applicant for the cost of the recording fees as required by law.
(d) If a public notice for a first public hearing pursuant to subsection 4442(a) of this title is issued under this chapter by the local legislative body with respect to the adoption or amendment of a bylaw, or an amendment to an ordinance adopted under prior enabling laws, the administrative officer, for a period of 150 days following that notice, shall review any new application filed after the date of the notice under the proposed bylaw or amendment and applicable existing bylaws and ordinances. If the new bylaw or amendment has not been adopted by the conclusion of the 150-day period or if the proposed bylaw or amendment is rejected, the permit shall be reviewed under existing bylaws and ordinances. An application that has been denied under a proposed bylaw or amendment that has been rejected or that has not been adopted within the 150-day period shall be reviewed again, at no cost, under the existing bylaws and ordinances, upon request of the applicant. Any determination by the administrative officer under this section shall be subject to appeal as provided in section 4465 of this title.
(e) Beginning October 1, 2010, any application for an approval or permit and any approval or permit issued under this section shall include a statement, in content and form approved by the Secretary of Natural Resources, that State permits may be required and that the permittee should contact State agencies to determine what permits must be obtained before any construction may commence.
(Added 2003, No. 115 (Adj. Sess.), § 100; amended 2009, No. 146 (Adj. Sess.), § F27; 2009, No. 154 (Adj. Sess.), § 236; 2013, No. 89, §§ 9, 11; 2021, No. 182 (Adj. Sess.), § 25, eff. July 1, 2022.)
§ 4450 Eligibility to apply for permits
Municipalities and solid waste management districts empowered to condemn property or an interest in property may apply for any permit or approval required by any bylaws adopted under this chapter.
(Added 2003, No. 115 (Adj. Sess.), § 101.)
§ 4451 Enforcement; penalties
(a) Any person who violates any bylaw after it has been adopted under this chapter or who violates a comparable ordinance or regulation adopted under prior enabling laws shall be fined not more than $200.00 for each offense. No action may be brought under this section unless the alleged offender has had at least seven days’ warning notice by certified mail. An action may be brought without the seven-day notice and opportunity to cure if the alleged offender repeats the violation of the bylaw or ordinance after the seven-day notice period and within the next succeeding 12 months.
(1) The seven-day warning notice shall state that a violation exists, that the alleged offender has an opportunity to cure the violation within the seven days, and that the alleged offender will not be entitled to an additional warning notice for a violation occurring after the seven days.
(2) A notice of violation issued under this chapter also shall state:
(A) the bylaw or municipal land use permit condition alleged to have been violated;
(B) the facts giving rise to the alleged violation;
(C) to whom appeal may be taken and the period of time for taking an appeal; and
(D) that failure to file an appeal within that period will render the notice of violation the final decision on the violation addressed in the notice.
(3) In default of payment of the fine, the person, the members of any partnership, or the principal officers of the corporation shall each pay double the amount of the fine. Each day that a violation is continued shall constitute a separate offense. All fines collected for the violation of bylaws shall be paid over to the municipality whose bylaw has been violated.
(b) Any person who, being the owner or agent of the owner of any lot, tract, or parcel of land, lays out, constructs, opens, or dedicates any street, sanitary sewer, storm sewer, water main, or other improvements for public use, travel, or other purposes or for the common use of occupants of buildings abutting thereon, or sells, transfers, or agrees or enters into an agreement to sell any land in a subdivision or land development whether by reference to or by other use of a plat of that subdivision or land development or otherwise, or erects any structure on that land, unless a final plat has been prepared in full compliance with this chapter and the bylaws adopted under this chapter and has been recorded as provided in this chapter, shall be fined not more than $200.00, and each lot or parcel so transferred or sold or agreed or included in a contract to be sold shall be deemed a separate violation. All fines collected for these violations shall be paid over to the municipality whose bylaw has been violated. The description by metes and bounds in the instrument of transfer or other document used in the process of selling or transferring shall not exempt the seller or transferor from these penalties or from the remedies provided in this chapter.
(Added 2003, No. 115 (Adj. Sess.), § 101; amended 2011, No. 155 (Adj. Sess.), § 3; 2013, No. 146 (Adj. Sess.), § 10, eff. May 27, 2014.)
§ 4452 Enforcement; remedies
If any street, building, structure, or land is or is proposed to be erected, constructed, reconstructed, altered, converted, maintained, or used in violation of any bylaw adopted under this chapter, the administrative officer shall institute in the name of the municipality any appropriate action, injunction, or other proceeding to prevent, restrain, correct, or abate that construction or use, or to prevent, in or about those premises, any act, conduct, business, or use constituting a violation. A court action under this section may be initiated in the Environmental Division, or as appropriate, before the Judicial Bureau, as provided under section 1974a of this title.
(Added 2003, No. 115 (Adj. Sess.), § 101; amended 2009, No. 154 (Adj. Sess.), § 236.)
§ 4453 Challenges to housing provisions in bylaws
The Attorney General or a designee shall investigate when there is a complaint that a bylaw or its manner of administration violates subdivision 4412(1) of this title, relating to equal treatment of housing and adequate provision of affordable housing. Upon determining that a violation has occurred, the Attorney General may file an action in the Environmental Division to challenge the validity of the bylaw or its manner of administration. In this action, the municipality shall have the burden of proof to establish by a preponderance of the evidence that the challenged bylaw or its manner of administration does not violate the provisions of subdivision 4412(1) of this title. If the Division finds the bylaw or its administration to be in violation, it shall grant the municipality a reasonable period of time to correct the violation and may extend that time. If the violation continues after that time, the Division shall order the municipality to grant all requested permits and certificates of occupancy for housing relating to the area of continuing violation.
(Added 2003, No. 115 (Adj. Sess.), § 101; amended 2009, No. 154 (Adj. Sess.), § 236.)
§ 4454 Enforcement; limitations
(a) An action, injunction, or other enforcement proceeding relating to the failure to obtain or comply with the terms and conditions of any required municipal land use permit may be instituted under section 1974a, 4451, or 4452 of this title against the alleged offender if the action, injunction, or other enforcement proceeding is instituted within 15 years from the date the alleged violation first occurred and not thereafter, except that the 15-year limitation for instituting an action, injunction, or enforcement proceeding shall not apply to any action, injunction, or enforcement proceeding instituted for a violation of chapter 61, subchapter 10. The burden of proving the date the alleged violation first occurred shall be on the person against whom the enforcement action is instituted.
(b) No action, injunction, or other enforcement proceeding may be instituted to enforce an alleged violation of a municipal land use permit that received final approval from the applicable board, commissioner, or officer of the municipality after July 1, 1998, unless the municipal land use permit or a notice of the permit generally in the form provided for in subsection 1154(c) of this title was recorded in the land records of the municipality as required by subsection 4449(c) of this title.
(c) Nothing in this section shall prevent any action, injunction, or other enforcement proceeding by a municipality under any other authority it may have, including a municipality’s authority under Title 18, relating to the authority to abate or remove public health risks or hazards.
(d)(1) As used in this section, “person” means any of the following:
(A) An individual, partnership, corporation, association, unincorporated organization, trust, or other legal or commercial entity, including a joint venture or affiliated ownership.
(B) A municipality or State agency.
(C) Individuals and entities affiliated with each other for profit, consideration, or any other beneficial interest derived from real estate.
(2) The following individuals and entities shall be presumed not to be affiliated with a person for the purpose of profit, consideration, or other beneficial interest within the meaning of this section, unless there is substantial evidence of an intent to evade the purposes of this section:
(A) A stockholder in a corporation shall be presumed not to be affiliated with a person solely on the basis of being a stockholder if the stockholder owns, controls, or has a beneficial interest in less than five percent of the outstanding shares in the corporation.
(B) An individual shall be presumed not to be affiliated with a person solely for actions taken as an agent of another within the normal scope of duties of a court-appointed guardian, licensed attorney, real estate broker or salesperson, engineer, or land surveyor, unless the compensation received or beneficial interest obtained as a result of these duties indicates more than an agency relationship.
(C) A seller or chartered lending institution shall be presumed not to be affiliated with a person solely for financing all or a portion of the purchase price at rates not substantially higher than prevailing lending rates in the community.
(Added 2003, No. 115 (Adj. Sess.), § 101; amended 2009, No. 93 (Adj. Sess.), § 3a.)
§ 4455 Revocation
On petition by the municipality and after notice and opportunity for hearing, the Environmental Division may revoke a municipal land use permit issued under this chapter, including a permit for a telecommunications facility, on a determination that the permittee violated the terms of the permit or obtained the permit based on misrepresentation of material fact.
(Added 2009, No. 54, § 47, eff. June 1, 2009; amended 2009, No. 154 (Adj. Sess.), § 236.)
Subchapter 10 Appropriate Municipal Panels
§ 4460 Appropriate municipal panels
(a) If a municipality establishes a development review board and appoints members to that board, the development review board in that municipality, until its existence is terminated by act of the legislative body, shall exercise all of the functions otherwise exercised under this chapter by the board of adjustment. It also shall exercise the specified development review functions otherwise exercised under this chapter by the planning commission. In municipalities that have created development review boards, the planning commission shall continue to exercise its planning and bylaw development functions and other duties established under this chapter. In situations where this chapter refers to functions that may be performed by a development review board or a planning commission or functions that may be performed by a development review board or a board of adjustment, it is intended that the function in question shall be performed by the development review board if one exists and by the other specified body if a development review board does not exist.
(b) The board of adjustment or the development review board for a rural town or an urban municipality may consist of the members of the planning commission of that town or may include one or more members of the planning commission. The board of adjustment for a rural town or an urban municipality shall consist of not fewer than three nor more than nine persons, as the legislative body of the municipality determines, appointed by the legislative body of the municipality promptly after the first adoption of a bylaw by the municipality. If the legislative body of a municipality creates a development review board to perform all development review functions under this chapter, that board shall consist of not fewer than five nor more than nine persons, as the legislative body of the municipality determines, appointed by the legislative body of the municipality. A municipality may not have a board of adjustment and a development review board at the same time. Upon creation of a development review board, the existence of any board of adjustment shall terminate.
(c) In the case of an urban municipality or of a rural town where the planning commission does not serve as the board of adjustment or the development review board, members of the board of adjustment or the development review board shall be appointed by the legislative body, the number and terms of office of which shall be determined by the legislative body subject to the provisions of subsection (b) of this section. The municipal legislative body may appoint alternates to a planning commission, a board of adjustment, or a development review board for a term to be determined by the legislative body. Alternates may be assigned by the legislative body to serve on the planning commission, the board of adjustment, or the development review board in situations when one or more members of the board are disqualified or are otherwise unable to serve. Vacancies shall be filled by the legislative body for the unexpired terms and upon the expiration of such terms. Each member of a board of adjustment or a development review board may be removed for cause by the legislative body upon written charges and after public hearing. If a development review board is created, provisions of this subsection regarding removal of members of the board of adjustment shall not apply.
(d) A joint board of adjustment or development review board may be created upon the act of each legislative body of those municipalities having joint planning commissions as provided in section 4327 of this title. The joint board of adjustment or development review board for these participating municipalities shall consist of persons who would have been the members of the board of adjustment or development review board of each of those municipalities. Joint entities created under this subsection may include a board of adjustment and a development review board, if those different entities exist in the participating municipalities.
(e) The following review functions shall be performed by the appropriate municipal panel authorized by a municipality as specified in the municipal bylaws and in accordance with this chapter, whether a zoning board of adjustment, planning commission, or development review board. Unless the matter is an appeal from the decision of the administrative officer, the matter shall come before the panel by referral from the administrative officer. Any such referral decision shall be appealable as a decision of the administrative officer.
(1) review of right-of-way or easement for land development without frontage as authorized in subdivision 4412(3) of this title;
(2) review of land development or use within an historic district or with respect to historic landmarks as authorized in subdivision 4414(1)(F) of this title;
(3) review of land development or use within a design control district as authorized in subdivision 4414(1)(E) of this title;
(4) review of proposed conditional uses as authorized in subdivision 4414(3) of this title;
(5) review of planned unit developments as authorized in section 4417 of this title;
(6) review of requests for waivers as authorized in subdivision 4414(9) of this title;
(7) site plan review as authorized in section 4416 of this title;
(8) review of proposed subdivisions as authorized in section 4418 of this title;
(9) review of wireless telecommunications facilities as authorized in subdivision 4414(12) of this title;
(10) appeals from a decision of the administrative officer pursuant to section 4465 of this title;
(11) review of requests for variances pursuant to section 4469 of this title;
(12) any other reviews required by the bylaws.
(f) Notwithstanding subsections (b) and (c) of this section, a municipality may vote at an annual or special meeting to change the number of members that may be appointed to a board of adjustment or development review board.
(1) The proposal to change the number of members serving on a board may be brought by the legislative body or by petition of five percent of the voters of the municipality.
(2) If the number of members on a board is reduced, the members with the nearest expiration of their term of office shall serve until the expiration of that term and then the office shall terminate.
(g)(1) This subsection shall apply to a subdivision or development that:
(A) was previously permitted pursuant to 10 V.S.A. chapter 151;
(B) is located in a Tier 1A area pursuant to 10 V.S.A. § 6034; and
(C) has applied for a permit or permit amendment required by zoning regulations or bylaws adopted pursuant to this subchapter.
(2) The appropriate municipal panel reviewing a municipal permit or permit amendment pursuant to this subsection shall include conditions contained within a permit previously issued pursuant to 10 V.S.A. chapter 151 unless the panel determines that the permit condition pertains to any of the following:
(A) the construction phase of the project that has already been constructed;
(B) compliance with another State permit that has independent jurisdiction;
(C) federal or State law that is no longer in effect or applicable;
(D) an issue that is addressed by municipal regulation and the project will meet the municipal standards; or
(E) a physical or use condition that is no longer in effect or applicable or that will no longer be in effect or applicable once the new project is approved.
(3) After issuing or amending a permit containing conditions pursuant to this subsection, the appropriate municipal panel shall provide notice and a copy of the permit to the Land Use Review Board.
(4) The appropriate municipal panel shall comply with the notice and hearing requirements provided in subdivision 4464(a)(1) of this title. In addition, notice shall be provided to those persons requiring notice under 10 V.S.A. § 6084(b) and shall explicitly reference the existing Act 250 permit.
(5) The appropriate municipal panel’s decision shall be issued in accordance with subsection 4464(b) of this title and shall include specific findings with respect to its determinations pursuant to subdivision (2) of this subsection.
(6) Any final action by the appropriate municipal panel affecting a condition of a permit previously issued pursuant to 10 V.S.A. chapter 151 shall be recorded in the municipal land records.
(h) Within a Tier 1A area, the appropriate municipal panel shall enforce any existing permits issued under 10 V.S.A. chapter 151 that has not had its permit conditions transferred to a municipal permit pursuant to subsection (g) of this section.
(Added 2003, No. 115 (Adj. Sess.), § 103; amended 2013, No. 162 (Adj. Sess.), § 9; 2021, No. 157 (Adj. Sess.), § 5, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 33, eff. June 17, 2024.)
§ 4461 Development review procedures
(a) Meetings. An appropriate municipal panel shall elect its own officers and adopt rules of procedure, subject to this section and other applicable State statutes, and shall adopt rules of ethics with respect to conflicts of interest. Meetings of any appropriate municipal panel shall be held at the call of the chairperson and at such times as the panel may determine. The officers of the panel may administer oaths and compel the attendance of witnesses and the production of material germane to any issue under review. All meetings of the panel, except for deliberative and executive sessions, shall be open to the public. The panel shall keep minutes of its proceedings, showing the vote of each member upon each question, or, if absent or failing to vote, indicating this, and shall keep records of its examinations and other official actions, all of which shall be filed immediately in the office of the clerk of the municipality as a public record. For the conduct of any hearing and the taking of any action, a quorum shall be not less than a majority of the members of the panel, and any action of the panel shall be taken by the concurrence of a majority of the panel.
(b) Information gathering and record of participation by interested persons. An appropriate municipal panel in connection with any proceeding under this chapter may examine or cause to be examined any property, maps, books, or records bearing upon the matters concerned in that proceeding, may require the attendance of any person having knowledge in the premises, may take testimony and require proof material for its information, and may administer oaths or take acknowledgment in respect of those matters. Any of the powers granted to an appropriate municipal panel by this subsection may be delegated by it to a specifically authorized agent or representative, except in situations where the Municipal Administrative Procedure Act applies. In any hearing, there shall be an opportunity for each person wishing to achieve status as an interested person under subsection 4465(b) of this title to demonstrate that the criteria set forth in that subsection are met, and the panel shall keep a written record of the name, address, and participation of each of these persons.
(c) Expenditures for service. An appropriate municipal panel may employ or contract for secretaries, clerks, legal counsel, consultants, and other technical and clerical services. All members of an appropriate municipal panel may be compensated for the performance of their duties and may be reimbursed by their municipality for necessary and reasonable expenses.
(Added 2003, No. 115 (Adj. Sess.), § 104.)
§ 4462 Combined review
If more than one type of review is required for a project, the reviews, to the extent feasible, shall be conducted concurrently. A process defining the sequence of review and issuance of decisions shall be defined in the bylaw.
(Added 2003, No. 115 (Adj. Sess.), § 104.)
§ 4463 Subdivision review
(a) Approval of plats. Before a plat for a major subdivision is approved, a public hearing on the plat shall be held by the appropriate municipal panel after public notice. A bylaw may provide for the administrative officer to approve minor subdivisions. A copy of the notice shall be sent to the clerk of an adjacent municipality, in the case of a plat located within 500 feet of a municipal boundary, at least 15 days prior to the public hearing.
(b) Plat; record. The approval of the appropriate municipal panel or administrative officer, if the bylaws provide for their approval of minor subdivisions, shall expire 180 days from that approval or certification unless, within that 180-day period, that plat shall have been duly filed or recorded in the office of the clerk of the municipality. After an approved plat or certification by the clerk is filed, no expiration of that approval or certification shall be applicable.
(1) The bylaw may allow the administrative officer to extend the date for filing the plat by an additional 90 days if final local or State permits or approvals are still pending.
(2) No plat showing a new street or highway may be filed or recorded in the office of the clerk of the municipality until it has been approved by the appropriate municipal panel, or administrative officer if allowed under the bylaws, pursuant to subsection (a) of this section, and that approval is endorsed in writing on the plat, or the certificate of the clerk of the municipality showing the failure of the appropriate municipal panel to take action within the 45-day period is attached to the plat and filed or recorded with the plat. After that filing or recording, the plat shall be a part of the official map of the municipality.
(c) Acceptance of streets; improvements. Every street or highway shown on a plat filed or recorded as provided in this chapter shall be deemed to be a private street or highway until it has been formally accepted by the municipality as a public street or highway by ordinance or resolution of the legislative body of the municipality. No public municipal street, utility, or improvement may be constructed by the municipality in or on any street or highway until it has become a public street or highway as provided in this section. The legislative body shall have authority after a public hearing on the subject to name and rename all public streets and to number and renumber lots so as to provide for existing as well as future structures.
(d) Beginning October 1, 2010, any application for an approval and any approval issued under this section shall include a statement, in content and form approved by the Secretary of Natural Resources, that State permits may be required and that the permittee should contact State agencies to determine what permits must be obtained before any construction may commence.
(e) Whenever a proposed subdivision is adjacent to a State highway, the application for subdivision approval shall include a letter from the Agency of Transportation confirming that the Agency has reviewed the proposed subdivision and determined whether a permit is required under 19 V.S.A. § 1111. If the Agency determines that a permit for the proposed subdivision is required under 19 V.S.A. § 1111, then the letter from the Agency shall set out any conditions that the Agency proposes to attach to the permit required under 19 V.S.A. § 1111.
(Added 2003, No. 115 (Adj. Sess.), § 104; amended 2009, No. 146 (Adj. Sess.), § F28; 2021, No. 55, § 37; 2023, No. 47, § 7, eff. July 1, 2023.)
§ 4464 Hearing and notice requirements; decisions and conditions; administrative review; role of advisory commissions in development review
(a) Notice procedures. All development review applications before an appropriate municipal panel under procedures set forth in this chapter shall require notice as follows.
(1) A warned public hearing shall be required for conditional use review, variances, administrative officer appeals, and final plat review for subdivisions. Any public notice for a warned public hearing shall be given not less than 15 days prior to the date of the public hearing by all the following:
(A) Publication of the date, place, and purpose of the hearing in a newspaper of general circulation in the municipality affected.
(B) Posting of the same information in three or more public places within the municipality in conformance with location requirements of 1 V.S.A. § 312(c)(2), including posting within view from the public right-of-way most nearly adjacent to the property for which an application is made.
(C) Written notification to the applicant and to owners of all properties adjoining the property subject to development, including the owners of properties which would be contiguous to the property subject to development but for the interposition of a highway or other public right-of-way and, in any situation in which a variance is sought regarding setbacks from a State highway, also including written notification to the Secretary of Transportation. The notification shall include a description of the proposed project and shall be accompanied by information that clearly informs the recipient where additional information may be obtained, and that participation in the local proceeding is a prerequisite to the right to take any subsequent appeal.
(2) Public notice for hearings on all other types of development review, including site plan review, shall be given not less than seven days prior to the date of the public hearing, and shall include at a minimum all the following:
(A) Posting of the date, place, and purpose of the hearing in three or more public places within the municipality in conformance with the time and location requirements of 1 V.S.A. § 312(c)(2).
(B) Written notification to the applicant and to the owners of all properties adjoining the property subject to development, including the owners of properties which would be contiguous to the property subject to development but for the interposition of a highway or other public right-of-way and, in any situation in which a variance is sought regarding setbacks from a State highway, also including written notification to the Secretary of Transportation. The notification shall include a description of the proposed project and shall be accompanied by information that clearly informs the recipient where additional information may be obtained, and that participation in the local proceeding is a prerequisite to the right to take any subsequent appeal.
(3) The applicant may be required to bear the cost of the public warning and the cost and responsibility of notification of adjoining landowners. The applicant may be required to demonstrate proof of delivery to adjoining landowners either by certified mail, return receipt requested, or by written notice hand delivered or mailed to the last known address supported by a sworn certificate of service.
(4) The bylaw may also require public notice through other effective means such as a notice board on a municipal website.
(5) No defect in the form or substance of any requirements in subdivision (1) or (2) of this subsection shall invalidate the action of the appropriate municipal panel where reasonable efforts are made to provide adequate posting and notice. However, the action shall be invalid when the defective posting or notice was materially misleading in content. If an action is ruled to be invalid by the Environmental Division or by the applicable municipal panel itself, the action shall be remanded to the applicable municipal panel to provide new posting and notice, hold a new hearing, and take a new action.
(b) Decisions.
(1) Within 120 days of an application being deemed complete, the appropriate municipal panel shall notice and warn a hearing on the application. The appropriate municipal panel may recess the proceedings on any application pending submission of additional information. The panel should close the evidence promptly after all parties have submitted the requested information. The panel shall adjourn the hearing and issue a decision within 45 days after the adjournment of the hearing, and failure of the panel to issue a decision within this period shall be deemed approval and shall be effective on the 46th day. Decisions shall be issued in writing and shall include a statement of the factual bases on which the appropriate municipal panel has made its conclusions and a statement of the conclusions. The minutes of the meeting may suffice, provided the factual bases and conclusions relating to the review standards are provided in conformance with this subsection.
(2) In rendering a decision in favor of the applicant, the panel may attach additional reasonable conditions and safeguards as it deems necessary to implement the purposes of this chapter and the pertinent bylaws and the municipal plan then in effect. A bylaw may provide for the conditioning of permit issuance on the submission of a bond, escrow account, or other surety in a form acceptable to the legislative body of the municipality to assure one or more of the following: the completion of the project, adequate stabilization, or protection of public facilities that may be affected by a project.
(3) Any decision shall be sent by certified mail within the period set forth in subdivision (1) of this subsection to the applicant and the appellant in matters on appeal. Copies of the decision shall also be mailed to every person or body appearing and having been heard at the hearing and a copy of the decision shall be filed with the administrative officer and the clerk of the municipality as a part of the public records of the municipality.
(4) Conditions may require that no zoning permit, except for any permits that may be required for infrastructure construction, may be issued for an approved development unless the streets and other required public improvements have been satisfactorily installed in accordance with the approval decision and pertinent bylaws. In lieu of the completion of the required public improvements, the appropriate municipal panel may require from the owner for the benefit of the municipality a performance bond issued either by a bonding or surety company approved by the legislative body or by the owner with security acceptable to the legislative body in an amount sufficient to cover the full cost of those new streets and required improvements on or in those streets or highways and their maintenance for a period of two years after completion as is estimated by the appropriate municipal panel or such municipal departments or officials as the panel may designate. This bond or other security shall provide for, and secure to the public, the completion of any improvements that may be required within the period fixed in the subdivision bylaws for that completion and for the maintenance of those improvements for a period of two years after completion.
(5) The legislative body may enter into an agreement governing any combination of the timing, financing, and coordination of private or public facilities and improvements in accordance with the terms and conditions of a municipal land use permit, provided that agreement is in compliance with all applicable bylaws in effect.
(6) The performance bond required by this subsection shall run for a term to be fixed by the appropriate municipal panel, but in no case for a longer term than three years. However, with the consent of the owner, the term of that bond may be extended for an additional period not to exceed three years. If any required improvements have not been installed or maintained as provided within the term of the performance bond, the bond shall be forfeited to the municipality and upon receipt of the proceeds of the bond, the municipality shall install or maintain such improvements as are covered by the performance bond.
(7)(A) A decision rendered by the appropriate municipal panel for a housing development or the housing portion of a mixed-use development shall not:
(i) require a larger lot size than the minimum as determined in the municipal bylaws;
(ii) require more parking spaces than the minimum as determined in the municipal bylaws and in section 4414 of this title;
(iii) limit the building size to less than that allowed in the municipal bylaws, including reducing the building footprint or height;
(iv) limit the density of dwelling units to below that allowed in the municipal bylaws; and
(v) otherwise disallow a development to abide by the minimum or maximum applicable municipal standards.
(B) However, a decision may require adjustments to the applicable municipal standards listed in subdivision (A) of this subdivision (7) if the panel or officer issues a written finding stating:
(i) why the modification is necessary to comply with a prerequisite State or federal permit, municipal permit, or a nondiscretionary standard in a bylaw or ordinance, including requirements related to wetlands, setbacks, and flood hazard areas and river corridors; and
(ii) how the identified restrictions do not result in an unequal treatment of housing or an unreasonable exclusion of housing development otherwise allowed by the bylaws.
(c) Administrative review. In addition to the delegation of powers authorized under this chapter, any bylaws adopted under this chapter may establish procedures under which the administrative officer may review and approve new development and amendments to previously approved development that would otherwise require review by an appropriate municipal panel. If administrative review is authorized, the bylaws shall clearly specify the thresholds and conditions under which the administrative officer classifies an application as eligible for administrative review. The thresholds and conditions shall be structured such that no new development shall be approved that results in a substantial impact under any of the standards set forth in the bylaws. No amendment issued as an administrative review shall have the effect of substantively altering any of the findings of fact of the most recent approval. Any decision by an administrative officer under this subsection may be appealed as provided in section 4465 of this title.
(d) Role of advisory commissions in development review. An advisory commission that has been established through section 4433 or chapter 118 of this title and that has been granted authority under the bylaws, by ordinance, or by resolution of the legislative body to advise the appropriate municipal panel or panels, applicants, and interested parties should perform the advisory function in the following manner:
(1) The administrative officer shall provide a copy or copies of applications subject to review by the advisory commission and all supporting information to the advisory commission upon determination that the application is complete.
(2) The advisory commission may review the application and prepare recommendations on each of the review standards within the commission’s purview for consideration by the appropriate municipal panel at the public hearing on the application. The commission or individual members of the commission may meet with the applicant, interested parties, or both, conduct site visits, and perform other fact-finding that will enable the preparation of recommendations.
(3) Meetings by the advisory commission on the application shall comply with the Open Meeting Law, 1 V.S.A. chapter 5, subchapter 2, and the requirements of the commission’s rules of procedure, but shall not be conducted as public hearings before a quasi-judicial body.
(4) The advisory commission’s recommendations may be presented in writing at or before the public hearing of the appropriate municipal panel on the application, or may be presented orally at the public hearing.
(5) If the advisory commission finds that an application fails to comply with one or more of the review standards, it shall make every effort to inform the applicant of the negative recommendations before the public hearing, giving the applicant an opportunity to withdraw the application or otherwise prepare a response to the advisory committee’s recommendations at the public hearing. Advisory commissions may also suggest remedies to correct the deficiencies that resulted in the negative recommendations.
(Added 2003, No. 115 (Adj. Sess.), § 104; amended 2007, No. 75, § 29; 2009, No. 154 (Adj. Sess.), § 236; 2023, No. 47, § 10, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 58, eff. June 17, 2024.)
Subchapter 11 Appeals
§ 4465 Appeals of decisions of the administrative officer
(a) An interested person may appeal any decision or act taken by the administrative officer in any municipality by filing a notice of appeal with the secretary of the board of adjustment or development review board of that municipality or with the clerk of that municipality if no such secretary has been elected. This notice of appeal must be filed within 15 days following the date of that decision or act, and a copy of the notice of appeal shall be filed with the administrative officer.
(b) As used in this chapter, an “interested person” means any one of the following:
(1) A person owning title to property, or a municipality or solid waste management district empowered to condemn it or an interest in it, affected by a bylaw, who alleges that the bylaw imposes on the property unreasonable or inappropriate restrictions of present or potential use under the particular circumstances of the case.
(2) The municipality that has a plan or a bylaw at issue in an appeal brought under this chapter or any municipality that adjoins that municipality.
(3) A person owning or occupying property in the immediate neighborhood of a property that is the subject of any decision or act taken under this chapter, who can demonstrate a physical or environmental impact on the person’s interest under the criteria reviewed, and who alleges that the decision or act, if confirmed, will not be in accord with the policies, purposes, or terms of the plan or bylaw of that municipality.
(4) Any 20 persons who may be any combination of voters, residents, or real property owners within a municipality listed in subdivision (2) of this subsection who, by signed petition to the appropriate municipal panel of a municipality, the plan or a bylaw of which is at issue in any appeal brought under this title, allege that any relief requested by a person under this title, if granted, will not be in accord with the policies, purposes, or terms of the plan or bylaw of that municipality. This petition to the appropriate municipal panel must designate one person to serve as the representative of the petitioners regarding all matters related to the appeal. For purposes of this subdivision, an appeal shall not include the character of the area affected if the project has a residential component that includes affordable housing.
(5) Any department and administrative subdivision of this State owning property or any interest in property within a municipality listed in subdivision (2) of this subsection, and the Agency of Commerce and Community Development of this State.
(c) In the exercise of its functions under this section, a board of adjustment or development review board shall have the following powers, in addition to those specifically provided for elsewhere in this chapter:
(1) To hear and decide appeals taken under this section, including where it is alleged that an error has been committed in any order, requirement, decision, or determination made by an administrative officer under this chapter in connection with the administration or enforcement of a bylaw.
(2) To hear and grant or deny a request for a variance under section 4469 of this title.
(Added 2003, No. 115 (Adj. Sess.), § 106; amended 2023, No. 47, § 6, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 59, eff. June 17, 2024.)
§ 4466 Notice of appeal
A notice of appeal shall be in writing and shall include the name and address of the appellant, a brief description of the property with respect to which the appeal is taken, a reference to the regulatory provisions applicable to that appeal, the relief requested by the appellant, and the alleged grounds why the requested relief is believed proper under the circumstances.
(Added 2003, No. 115 (Adj. Sess.), § 106.)
§ 4467 [Reserved for future use.]
§ 4468 Hearing on appeal
The appropriate municipal panel shall set a date and place for a public hearing of an appeal under this chapter that shall be within 60 days of the filing of the notice of appeal under section 4465 of this title. The appropriate municipal panel shall give public notice of the hearing and shall mail to the appellant a copy of that notice at least 15 days prior to the hearing date. Any person or body empowered by section 4465 of this title to take an appeal with respect to that property at issue may appear and be heard in person or be represented by an agent or attorney at the hearing. Any hearing held under this section may be adjourned by the appropriate municipal panel from time to time; provided, however, that the date and place of the adjourned hearing shall be announced at the hearing. All hearings under this section shall be open to the public and the rules of evidence applicable at these hearings shall be the same as the rules of evidence applicable in contested cases in hearings before administrative agencies as set forth in 3 V.S.A. § 810.
(Added 2003, No. 115 (Adj. Sess.), § 106.)
§ 4469 Appeal; variances
(a) On an appeal under section 4465 or 4471 of this title or on a referral under subsection 4460(e) of this title in which a variance from the provisions of a bylaw or interim bylaw is requested for a structure that is not primarily a renewable energy resource structure, the board of adjustment or the development review board or the Environmental Division created under 4 V.S.A. chapter 27 shall grant variances and render a decision in favor of the appellant, if all the following facts are found, and the finding is specified in its decision:
(1) There are unique physical circumstances or conditions, including irregularity, narrowness, or shallowness of lot size or shape, or exceptional topographical or other physical conditions peculiar to the particular property, and that unnecessary hardship is due to these conditions, and not the circumstances or conditions generally created by the provisions of the bylaw in the neighborhood or district in which the property is located.
(2) Because of these physical circumstances or conditions, there is no possibility that the property can be developed in strict conformity with the provisions of the bylaw, and that the authorization of a variance is therefore necessary to enable the reasonable use of the property.
(3) Unnecessary hardship has not been created by the appellant.
(4) The variance, if authorized, will not alter the essential character of the neighborhood or district in which the property is located, substantially or permanently impair the appropriate use or development of adjacent property, reduce access to renewable energy resources, or be detrimental to the public welfare.
(5) The variance, if authorized, will represent the minimum variance that will afford relief and will represent the least deviation possible from the bylaw and from the plan.
(b) On an appeal under section 4465 or 4471 of this title in which a variance from the provisions of a bylaw or interim bylaw is requested for a structure that is primarily a renewable energy resource structure, the board of adjustment or development review board or the Environmental Division may grant that variance and render a decision in favor of the appellant if all the following facts are found, and the finding is specified in its decision:
(1) It is unusually difficult or unduly expensive for the appellant to build a suitable renewable energy resource structure in conformance with the bylaws.
(2) The hardship was not created by the appellant.
(3) The variance, if authorized, will not alter the essential character of the neighborhood or district in which the property is located, substantially or permanently impair the appropriate use or development of adjacent property, reduce access to renewable energy resources, or be detrimental to the public welfare.
(4) The variance, if authorized, will represent the minimum variance that will afford relief and will represent the least deviation possible from the bylaws and from the plan.
(c) In rendering a decision in favor of an appellant under this section, a board of adjustment or development review board or the Environmental Division may attach such conditions to variances as it may consider necessary and appropriate under the circumstances to implement the purposes of this chapter and the plan of the municipality then in effect.
(d) A variance authorized in a flood hazard area shall meet applicable federal and State rules for compliance with the National Flood Insurance Program.
(Added 2003, No. 115 (Adj. Sess.), § 106; amended 2009, No. 154 (Adj. Sess.), § 236; 2011, No. 138 (Adj. Sess.), § 14, eff. May 14, 2012.)
§ 4470 Successive appeals; requests for reconsideration to an appropriate municipal panel
(a) An appropriate municipal panel may reject an appeal or request for reconsideration without hearing and render a decision, which shall include findings of fact, within 10 days of the date of filing of the notice of appeal, if the appropriate municipal panel considers the issues raised by the appellant in the appeal have been decided in an earlier appeal or involve substantially or materially the same facts by or on behalf of that appellant. The decision shall be rendered, on notice given, as in the case of a decision under subdivision 4464(b)(3) of this title, and shall constitute a decision of the appropriate municipal panel for the purpose of section 4471 of this title.
(b) A municipality shall enforce all decisions of its appropriate municipal panels, and further, the Superior Court’s Civil or Environmental Division shall enforce such decisions upon petition, complaint, or appeal or other means in accordance with the laws of this State by such municipality or any interested person by means of mandamus, injunction, process of contempt, or otherwise.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1993, No. 232 (Adj. Sess.), § 20, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 107; 2009, No. 154 (Adj. Sess.), § 236.)
§ 4470a Misrepresentation; material fact
An administrative officer or appropriate municipal panel may reject an application under this chapter, including an application for a telecommunications facility, that misrepresents any material fact. After notice and opportunity for hearing in compliance with 3 V.S.A. § 809, an appropriate municipal panel may award reasonable attorney’s fees and costs to any party or person who may have become a party but for the false or misleading information or who has incurred attorney’s fees or costs in connection with the application.
(Added 2009, No. 54, § 48, eff. June 1, 2009.)
§ 4471 Appeal to Environmental Division
(a) Participation required. An interested person who has participated in a municipal regulatory proceeding authorized under this title may appeal a decision rendered in that proceeding by an appropriate municipal panel to the Environmental Division. Participation in a local regulatory proceeding shall consist of offering, through oral or written testimony, evidence or a statement of concern related to the subject of the proceeding. An appeal from a decision of the appropriate municipal panel, or from a decision of the municipal legislative body under subsection 4415(d) of this title, shall be taken in such manner as the Supreme Court may by rule provide for appeals from State agencies governed by 3 V.S.A. §§ 801-816, unless the decision is an appropriate municipal panel decision which the municipality has elected to be subject to review on the record.
(b) Appeal on the record. If the municipal legislative body has determined (or been instructed by the voters) to provide that appeals of certain appropriate municipal panel determinations shall be on the record, has defined what magnitude or nature of development proposal shall be subject to the production of an adequate record by the panel, and has provided that the Municipal Administrative Procedure Act shall apply in these instances, then an appeal from such a decision of an appropriate municipal panel shall be taken on the record in accordance with the Vermont Rules of Civil Procedure.
(c) Notice. Notice of the appeal shall be filed by certified mailing, with fees, to the Environmental Division and by mailing a copy to the municipal clerk or the administrative officer, if so designated, who shall supply a list of interested persons to the appellant within five working days. Upon receipt of the list of interested persons, the appellant shall, by certified mail, provide a copy of the notice of appeal to every interested person, and, if any one or more of those persons are not then parties to the appeal, upon motion they shall be granted leave by the Division to intervene.
(d) Local Act 250 review. Notwithstanding the provisions of subsection (a) of this section, decisions of a development review board under section 4420 of this title, with respect to local Act 250 review of municipal impacts, are not subject to appeal, but shall serve as presumptions under the provisions of 10 V.S.A. chapter 151.
(e) Designated areas. Notwithstanding subsection (a) of this section, a determination by an appropriate municipal panel that a residential development will not result in an undue adverse effect on the character of the area affected shall not be subject to appeal if the a proposed residential development seeking conditional use approval under subdivision 4414(3) of this title is within a designated downtown development district, designated growth center, or designated neighborhood development area. Other elements of the determination made by the appropriate municipal panel may be appealed.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1971, No. 185 (Adj. Sess.), § 205, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1993, No. 232 (Adj. Sess.), § 48, eff. March 15, 1995; 1999, No. 112 (Adj. Sess.), § 1; 2003, No. 115 (Adj. Sess.), § 107; 2007, No. 176 (Adj. Sess.), § 9, eff. May 28, 2008; 2009, No. 154 (Adj. Sess.), § 236; 2015, No. 51, § F.6; 2023, No. 47, § 9, eff. July 1, 2023.)
§ 4472 Exclusivity of remedy; finality
(a) Except as provided in subsections (b) and (c) of this section, the exclusive remedy of an interested person with respect to any decision or act taken, or any failure to act, under this chapter or with respect to any one or more of the provisions of any plan or bylaw shall be the appeal to the appropriate panel under section 4465 of this title, and the appeal to the Environmental Division from an adverse decision upon such appeal under section 4471 of this title. The appeal to the Environmental Division, if not on the record, as allowed under section 4471 of this title, shall be governed by the Vermont Rules of Civil Procedure and such interested person shall be entitled to a de novo trial in the Environmental Division. If the appeal to the Environmental Division is on the record, according to the provisions of section 4471 of this title, it shall be governed by the Vermont Rules of Civil Procedure. Whether proceeding on the record or de novo, the court shall have and may exercise all powers and authorities of a Superior Court.
(b) The remedy of an interested person with respect to the constitutionality of any one or more of the provisions of any bylaw or municipal plan shall be governed by the Vermont Rules of Civil Procedure with a de novo trial in the Superior Court, unless the issue arises in the context of another case under this chapter, in which instance it may be raised in the Environmental Division. In such cases, hearings before the appropriate municipal panel shall not be required. This section shall not limit the authority of the Attorney General to bring an action before the Environmental Division under section 4453 of this title, with respect to challenges to housing provisions in bylaws.
(c) The provisions of this section shall not be construed as preventing appeals to the Supreme Court in accordance with the Vermont Rules of Civil Procedure and the Vermont Rules of Appellate Procedure.
(d) Upon the failure of any interested person to appeal to an appropriate municipal panel under section 4465 of this title, or to appeal to the Environmental Division under section 4471 of this title, all interested persons affected shall be bound by that decision or act of that officer, the provisions, or the decisions of the panel, as the case may be, and shall not thereafter contest, either directly or indirectly, the decision or act, provision, or decision of the panel in any proceeding, including any proceeding brought to enforce this chapter.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 255 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 261, (Adj. Sess.), § 8, 1993, No. 232 (Adj. Sess.), § 49, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 107; 2009, No. 154 (Adj. Sess.), § 236.)
§ 4473 Purpose; limitation
It is the purpose of this chapter to provide for review of all questions arising out of or with respect to the implementation by a municipality of this chapter. Except as specifically provided herein, no board of adjustment or development review board may amend, alter, invalidate, or affect any development plan or bylaw of any municipality or the implementation or enforcement thereof, or allow any use not permitted by any zoning regulations or other bylaw.
(Added 1967, No. 334 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1973, No. 255, § 4, eff. April 11, 1974; 1993, No. 232 (Adj. Sess.), § 21, eff. March 15, 1995.)
§ 4474 Clerk’s certificate
A certificate of the clerk of a municipality showing the publication, posting, consideration, and adoption of a plan, bylaw, capital budget, or program or amendment thereof shall be presumptive evidence of the facts as they relate to the lawful adoption of said plan, bylaw, capital budget, or program or amendment thereof, so stated in any action or proceeding in court or before any board, commission, or other tribunal.
(Added 1973, No. 261 (Adj. Sess.), § 9; amended 1975, No. 164 (Adj. Sess.), § 10.)
§ 4475 Repealed
[Repealed]
2003, No. 115 (Adj. Sess.), § 119(c).
§ 4476 Formal review of regional planning commission decisions
(a) Formal review. A request for formal review of the sufficiency of an adopted regional plan or amendment, or for formal review of the decision of a regional planning commission with respect to the confirmation of a municipal planning effort, or the decision relating to approval of a municipal plan, shall be to the regional review panel created under section 4305 of this title. A request for formal review shall be filed within 21 days of adoption of the plan or amendment or the decision.
(b) Standing. The following have standing to request formal review or become parties to formal review conducted under this section:
(1) a person owning title to property affected by a decision of the regional planning commission who alleges that that decision imposes on that property unreasonable or inappropriate restrictions that significantly impair present or potential use under the particular circumstances of the case;
(2) a municipality whose planning effort is the subject of a decision by the regional planning commission, any other municipality within the region, any municipality which adjoins the region, or a regional planning commission which adjoins the region;
(3) any agency, department, or other governmental subdivision of the State owning property or an interest therein within a municipality listed in subdivision (2) of this subsection, and the Agency of Commerce and Community Development;
(4) any 20 persons who by signed petition allege that the decision, if confirmed, will not be in accord with the requirements of this chapter, and who own or occupy real property located within any combination of the following:
(A) any municipality whose planning effort is the subject of the decision by the regional planning commission; or
(B) any municipality which adjoins a municipality whose planning effort is subject of the decision by the regional planning commission;
(5) with respect to the sufficiency of an adopted or amended regional plan, any 20 persons who by signed petition allege that the plan or amendment is not in accord with the requirements of this chapter, and who own or occupy real property located within the area that includes the region and the municipalities that adjoin the region;
(6) the regional planning commission whose plan, amendment, or decision is the subject of the request for formal review.
(c) Procedure; regional review panel. Notice of formal review shall be sent by mail to the municipalities within the region, to the regional planning commission, and to the Agency of Commerce and Community Development and shall be accompanied by a statement of all reasons why the appellant believes the plan or opinion to be in error and all issues which the appellant believes to be relevant. Within 30 days of receipt of the notice of formal review, the date for a hearing shall be set and the council shall publish notice of the hearing in a newspaper of general circulation in the applicable region, and shall provide notice in writing of the hearing to individuals and organizations that had requested notice from the regional planning commission under section 4348 relating to the adoption of a regional plan. The appellant shall pay the costs of publication. The hearing shall be held within 45 days of receipt of the notice of formal review. Upon motion, for good cause shown, the panel may extend the date of the hearing. Within 20 days of adjournment of the hearing, the regional review panel shall issue a decision approving, conditionally approving, or disapproving the regional plan or amendment or the opinion with respect to confirmation of the municipal planning effort or approval of the municipal plan. The regional review panel shall be governed by the provisions for contested cases in 3 V.S.A. chapter 25.
(d) Issues on formal review.
(1) With respect to formal review of the sufficiency of an adopted or amended regional plan, the regional review panel shall determine:
(A) whether the plan contains the elements required by law;
(B) whether the plan is compatible with the plans of adjoining regions; and
(C) whether the plan is consistent with the goals established in section 4302 of this title.
(2) With respect to formal review of a regional planning commission decision on the confirmation of a municipal planning effort, the regional review panel shall determine:
(A) whether the municipality is engaged in a continuing planning process that, within a reasonable time, will attain consistency with the goals established in section 4302 of this title; and
(B) whether the municipality is maintaining its efforts to provide local funds for municipal and regional planning purposes.
(3) With respect to formal review of a regional planning commission decision on the approval or disapproval of a municipal plan, the regional review panel shall determine:
(A) whether the plan is consistent with the goals established in section 4302 of this title;
(B) whether the plan is compatible with its regional plan; and
(C) whether the plan is compatible with approved plans of other municipalities in the region.
(e) Stays.
(1) The filing of a notice of formal review shall not stay the effect of the plan or the decision of the regional planning commission, unless so ordered by the regional review panel.
(2) If notice of formal review of the decision of a regional planning commission to approve or disapprove a municipal plan is filed prior to final adoption of the plan, the regional review panel shall stay formal review proceedings pending final adoption. The panel, however, may proceed with formal review upon the request of the municipality whose plan is the subject of the review.
(f) Appeal to Supreme Court. An appeal from a decision of the regional review panel shall be to the Supreme Court.
(Added 1987, No. 200 (Adj. Sess.), § 33, eff. July 1, 1989; amended 1989, No. 280 (Adj. Sess.),§§ 11, 11a; 1995, No. 190 (Adj. Sess.), § 1(a).)
Subchapter 12 Construction of Act, Saving Clause, Severability
§ 4480 Construction of chapter
The provisions of this chapter shall not affect any act done, contract executed, or liability incurred prior to its effective date, or affect any suit or prosecution pending or to be instituted, to enforce any right, rule, regulation, or ordinance or to punish any offense against any such repealed laws or against any ordinance enacted under them. All ordinances, resolutions, regulations, and rules made under any act of the General Assembly repealed by this chapter shall continue in effect as if such act had not been repealed, except as otherwise specifically provided in this chapter.
(Added 2003, No. 115 (Adj. Sess.), § 109.)
§ 4481 Saving clause
The amendment of this chapter and the repeal of prior enabling laws relating to zoning ordinances, subdivision regulations, or bylaws or any ordinance or regulation similar to a bylaw authorized by this chapter shall not invalidate any zoning ordinance, subdivision regulation, or bylaw or any such ordinance or regulation enacted under those prior enabling laws, except as follows. Effective September 1, 2005, the provisions of sections 4412 and 4413 of this title, and the provisions of subchapters 9, 10, and 11 of this chapter and the related definitions in section 4303 of this title, shall control over any inconsistent municipal regulations, ordinances, or bylaws. With respect to other provisions of this chapter, any previously enacted zoning ordinance, subdivision regulation, bylaw, or such similar ordinance or regulation shall be amended to conform with the provisions of this chapter by September 1, 2011.
(Added 2003, No. 115 (Adj. Sess.), § 109.)
§ 4482 Severability
If any provision of this chapter or the application of this chapter to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and for this purpose, the provisions of this chapter are severable.
(Added 2003, No. 115 (Adj. Sess.), § 109.)
§ 4483 Construction; limitation
(a) In reviewing the procedures used in the adoption, amendment, or repeal of any plan or bylaw, no court shall invalidate the plan or bylaw or its amendment or repeal because of a failure to adhere to strict and literal requirements of this chapter concerning minor or nonessential particulars. The court shall uphold the plan, bylaw, or action if there has been substantial compliance with the procedural requirements of this chapter.
(b) No person shall challenge for purported procedural defects the validity of any plan or bylaw as adopted, amended, or repealed under this chapter after two years following the day on which it would have taken effect if no defect had occurred.
(Added 2003, No. 115 (Adj. Sess.), § 109.)
§§ 4490-4496 Repealed
[Repealed]
2003, No. 115 (Adj. Sess.), § 119(c).
Subchapter 13 Annual Housing Reports
§ 4498 Housing budget and investment reports
The Commissioner of Housing and Community Development shall:
(1) Create a Vermont housing budget designed to assure efficient expenditure of State funds appropriated for housing development, to encourage and enhance cooperation among housing organizations, to eliminate overlap and redundancy in housing development efforts, and to ensure appropriate geographic distribution of housing funds. The Vermont housing budget shall include any State funds of $50,000.00 or more awarded or appropriated for housing. The Vermont housing budget and appropriation recommendations shall be submitted to the General Assembly annually on or before January 15. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the recommendations to be made under this subdivision, and the report shall include the amounts and purposes of funds appropriated for or awarded to the following:
(A) The Vermont Housing and Conservation Trust Fund.
(B) The Agency of Human Services.
(C) The Agency of Commerce and Community Development.
(D) Any other entity that fits the funding criteria.
(2) Annually, develop a Vermont Housing Investment Plan in consultation with the Vermont Housing Council. The Housing Investment Plan shall be consistent with the Vermont consolidated plan for housing, in order to coordinate the investment of State, federal, and other resources, such as State appropriations, tax credits, rental assistance, and mortgage revenue bonds, to increase the availability and improve the quality of Vermont’s housing stock. The Housing Investment Plan shall be submitted to the General Assembly, annually on January 15. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the Plan to be made under this subdivision, and the Plan shall:
(A) target investments at single-family housing, mobile homes, multi-family housing, and housing for homeless persons and people with special needs;
(B) recommend approaches that maximize the use of available State and federal resources;
(C) identify areas of the State that face the greatest housing shortages; and
(D) recommend strategies to improve coordination among State, local, and regional offices in order to remedy identified housing shortages.
(Added 2005, No. 189 (Adj. Sess.), § 12; amended 2013, No. 142 (Adj. Sess.), § 38.)
Chapter 118 Conservation Commissions
§ 4501 Creation of conservation commissions
A conservation commission may be created at any time when a municipality votes to create one, or, if the charter of a municipality permits it, when the legislative body of the municipality votes to create one.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
§ 4502 Membership; appointment; terms
(a) A conservation commission shall have not less than three nor more than nine members. All members shall serve without compensation, but may be reimbursed by the municipality for necessary and reasonable expenses. All members shall be residents of the municipality.
(b) Members of the conservation commission shall be appointed, and any vacancy filled, by the legislative body of the municipality. The term of each member shall be for four years, except for those first appointed, whose terms shall be varied in length so that in the future the number whose terms expire in each successive year shall be minimized.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
§ 4503 Removals; vacancies
(a) Any member of a conservation commission may be removed at any time for just cause by vote of the legislative body, for reasons given to him or her in writing and after a public hearing thereon if he or she so requests.
(b) Any appointment to fill a vacancy shall be for the unexpired term.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
§ 4504 Rules
(a) At its organizational meeting a conservation commission shall adopt by majority vote of those present and voting such rules as it deems necessary and appropriate for the performance of its functions. It shall annually elect a chair, a treasurer, and a clerk.
(b) Times and places of meetings of a conservation commission shall be publicly posted in the municipality, and its meetings shall be open to the public.
(c) A conservation commission shall keep a record of its transactions, which shall be filed with the town clerk as a public record of the municipality.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
§ 4505 Powers and duties of conservation commissions
Any conservation commission created under this chapter may:
(1) make an inventory and conduct continuing studies of the natural resources of the municipality including:
(A) air, surface and ground waters, and pollution thereof;
(B) soils and their capabilities;
(C) mineral and other earth resources;
(D) streams, lakes, ponds, wetlands, and floodplains;
(E) unique or fragile biologic sites;
(F) scenic and recreational resources;
(G) plant and animal life, especially the rare and endangered species;
(H) prime agricultural and forest land, and other open lands;
(2) make and maintain an inventory of lands within the municipality which have historic, educational, cultural, scientific, architectural, or archaeological values in which the public has an interest;
(3) recommend to the legislative body of the municipality the purchase or the receipt of gifts of land or rights thereto, or other property, for the purposes of this chapter;
(4) receive appropriations for operating expenses including clerical help by appropriation through the budget of the legislative body;
(5) receive money, grants, or private gifts from any source, for the purposes of this chapter. Grants and gifts received by the trustee of public funds shall be carried in a conservation fund from year to year to be expended only for purposes of this chapter;
(6) receive gifts of land or other property for the purposes of this chapter, by consent of the legislative body or by the affirmative vote of the municipality;
(7) administer the lands, properties, and other rights which have been acquired by the municipality for the purposes of this chapter;
(8) assist the local planning commission or zoning board of adjustment or the District Environmental Commission, by providing advisory environmental evaluations where pertinent to applications made to those bodies, for permits for development;
(9) cooperate with the local legislative body, planning commission, zoning board of adjustment, road committee, or other municipal or private organizations on matters affecting the local environment or the natural resources of the municipality;
(10) prepare, collect, publish, advertise, and distribute relevant books, maps, and other documents and maintain communication with similar organizations; and encourage through educational activities the public understanding of local natural resources and conservation needs;
(11) make a brief annual report to the municipality of its finances and transactions for the year just passed, and its plans and prospects for the ensuing year.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
§ 4506 Disposition of property
Land, rights, or other property acquired by a municipality under this chapter shall not be sold or diverted to uses other than conservation or recreation except after approval by an affirmative vote of the voters of the town at the annual meeting.
(Added 1977, No. 250 (Adj. Sess.), § 1.)
Chapter 119 Vermont Bond Bank
Subchapter 1 General Provisions
§ 4551 Definitions
As used in this chapter:
(1) “Bank” means the Vermont Bond Bank established by section 4571 of this title.
(2) “Bonds” means bonds of the Bank issued under this chapter.
(3) “County” means any county of the State.
(4) “General Fund” means the fund established under section 4676 of this title.
(5) “Governmental unit” means any county, municipality, or public body.
(6) “Issue,” when used in reference to bonds or notes, means the physical delivery thereof or the effectuation thereof in book entry form, in each case against payment therefor.
(7) “Municipal bond” means a bond or note or evidence of debt or financing arrangement of a governmental unit, including a bond, note, or evidence of debt, constituting a general obligation of a governmental unit, but does not include any bond or note or evidence of debt issued by any other state or any public body or municipal corporation thereof.
(8) “Municipality” means any city, town, village, town school district, incorporated school district, union school district, or other school district, fire district, consolidated sewer district, consolidated water district, or solid waste district organized under the laws of the State, and also includes every municipal corporation identified in subdivision 1751(1) of this title.
(9) “Notes” means any notes of the Bank issued under this chapter.
(10) “Public body” means any public body corporate and politic or any political subdivision of the State established under any law of the State.
(11) “Reserve Fund” means the Vermont Bond Bank Reserve fund established under section 4671 of this title.
(12) “Revenues” means all fees, charges, monies, profits, payments of principal of or interest on municipal bonds and revenue bonds and other investments, gifts, grants, contributions, appropriations, and all other income derived or to be derived by the Bank under this chapter.
(13) “Revenue bond” means a bond or note or evidence of debt constituting an obligation or financing arrangement of a governmental unit authorized under laws of the State and payable solely from revenues derived from the financed asset, enterprise funds, or other specified revenues and the earnings thereon.
(14) “Revenue Bond Reserve Fund” means the Vermont Bond Bank Revenue Bond Reserve Fund established under section 4681 of this title.
(15) “Revenue Fund” means the Vermont Bond Bank Revenue Fund established under section 4683 of this title.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 4, Feb. 14, 1972; 1983, No. 12, § 1, eff. March 29, 1983; 1985, No. 127 (Adj. Sess.), § 1, eff. April 21, 1986; 1987, No. 55, §§ 1-4, eff. May 15, 1987; 1987, No. 75, § 3; 1989, No. 111, § 4, eff. June 22, 1989; 2023, No. 72, § 24, eff. June 19, 2023.)
§ 4552 Law governing
It is the intent of the General Assembly that in the event of any conflict or inconsistency in the provisions of this chapter and any other laws pertaining to matters established in this chapter or provided for or in any rules adopted under this chapter or other laws, to the extent of such conflict or inconsistency, the provisions of this chapter shall be enforced and the provisions of the other laws and rules adopted pursuant to this chapter shall be of no effect.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4553 Liberal construction
This chapter shall be construed liberally to effectuate the legislative intent and the purposes of the chapter as complete and independent authority for the performance of each and every act and thing authorized by this chapter and all powers granted by this chapter shall be broadly interpreted to effectuate that intent and purposes and not as a limitation of powers.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4554 Administration expenses
All expenses incurred in carrying out this chapter are payable solely from revenues or funds provided under this chapter and nothing in this chapter authorizes the Bank to incur any indebtedness or liability on behalf of or payable by the State.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4555 Duties of State Treasurer
(a) The State Treasurer may receive from the United States of America or any department or agency thereof any amounts of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the Bank or this chapter, and the amounts shall be credited to and deposited in the Reserve Fund or Revenue Bond Reserve Funds, as appropriate, and be available to the Bank.
(b) Any monies in the custody of the State Treasurer whether made available by reason of any grant, allocation, or appropriation by the United States of America or the State or agencies thereof to assist any governmental unit in payment of its municipal bonds or revenue bonds acquired or held by the Bank, or required by the terms of any other law to be paid to holders or owners of municipal bonds or revenue bonds of a governmental unit upon failure or default of a governmental unit to pay the principal of or interest on its municipal bonds or revenue bonds when due and payable, shall, to the extent that those funds or monies are applicable to municipal bonds or revenue bonds of a particular governmental unit and that are then acquired or held by the Bank and as to which that governmental unit has defaulted on payment of principal or interest when due, be paid and deposited by the State Treasurer in the applicable reserve fund or funds and made available to the Bank.
(c) Upon receipt by the State Treasurer of written notice from the Bank, or the corporate trustee exercising rights on behalf of the holders of bonds issued by the Bank, that a governmental unit is in default on the payment of principal or interest on a municipal bond or revenue bond acquired or held by the Bank, the State Treasurer shall immediately withhold all further payment to the governmental unit of any or all funds appropriated and payable by the State to the governmental unit, until the default is cured. During the default period, the State Treasurer shall make direct payment of all, or as much as is necessary, of the withheld amounts to the Bank, or at the Bank’s direction, to the trustee or paying agent for the bonds, so as to cure, or cure insofar as possible, the default as to the bond or the interest on the bond.
(d) Any payments described in subsection (c) of this section made by the State Treasurer to the Bank, or the Bank’s trustee or paying agent for the bond, shall be credited as if made directly by the governmental unit. The payment shall be offset against any appropriation otherwise payable to the governmental unit by the State during each fiscal year. Upon receipt of the payment, the Bank, or the Bank’s trustee or paying agent, shall provide written notice of the payment to the governmental unit.
(e) Nothing in this section shall be construed:
(1) to limit, impair, or impede the rights or remedies granted to the holders of bonds issued by the Bank and the governmental units;
(2) to require the State to continue the payment of State aid or assistance to any governmental unit;
(3) to limit or prohibit the State from repealing or amending any law relating to State aid or assistance, including the manner and time of payment or apportionment, or the amount of aid or assistance;
(4) to create any obligation on the part of the State Treasurer or the State to make any payment on behalf of a defaulting governmental unit other than from funds appropriated and payable to a defaulting governmental unit by the State.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 5, eff. May 15, 1987; 2015, No. 77 (Adj. Sess.), § 1.)
§ 4556 Cooperation by government agencies; cost
All officers, departments, boards, agencies, divisions, and commissions of the State must render any services to the Bank as are within the area of their respective governmental functions as fixed by law and as may be requested by the Bank and must comply promptly with any reasonable request by the Bank as to the making of any study or review as to desirability, need, cost, or expense with respect to any public project, purpose or improvement, or the financial feasibility thereof or the financial or fiscal responsibility or ability in connection therewith of any governmental unit making application for loan to the Bank and for the purchase by the Bank of municipal bonds or revenue bonds to be issued by that governmental unit. The cost and expense of any services requested by the Bank shall, at the request of the officer, department, board, agency, division, or commission rendering the service, be paid for by the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 6, eff. May 15, 1987.)
Subchapter 2 Establishment and Organization
§ 4571 Establishment
There is hereby established a body corporate and politic, with corporate succession, to be known as the “Vermont Bond Bank.” The Bank is hereby constituted as an instrumentality exercising public and essential governmental functions, and the exercise by the Bank of the powers conferred by this chapter are deemed to be an essential governmental function of the State.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 2023, No. 72, § 25, eff. June 19, 2023.)
§ 4571a Reports
The Vermont Bond Bank shall prepare and submit, consistent with 2 V.S.A. § 20(a), a report on activities for the preceding calendar year, pursuant to section 4594 of this title.
(Added 2003, No. 122 (Adj. Sess.), § 294i; amended 2023, No. 72, § 26, eff. June 19, 2023.)
§ 4572 Membership; vacancies
The Bank established by section 4571 of this title shall consist of the following five directors: the State Treasurer, or his or her designee, who shall be a director ex officio, and four directors appointed by the Governor with the advice and consent of the Senate for terms of two years. The four directors appointed by the Governor must be residents of the State and must be qualified voters therein for at least one year next preceding the time of appointment. The Governor shall first appoint two directors to serve until February 1, 1971 and two directors to serve until February 1, 1972. Each director shall hold office for the term of his or her appointment and until his or her successor shall have been appointed and qualified. A director shall be eligible for reappointment. Any vacancy in a directorship occurring other than by expiration of term shall be filled in the same manner as the original appointment, except that the advice and consent of the Senate shall not be required if it is not in session, but for the unexpired term only.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; 2011, No. 40, § 52, eff. May 20, 2011.)
§ 4573 Removal from office; oath
Each director may be removed from office by the Governor, for cause, after a public hearing, and may be suspended by the Governor pending the completion of the hearing. Each director before entering upon his or her duties shall take and subscribe an oath to perform the duties of his or her office faithfully, impartially, and justly to the best of his or her ability. A record of the oath shall be filed in the Office of the Secretary of State.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4574 Officers; quorum
The directors shall elect one of their number as chair. The directors shall elect a secretary and a treasurer who need not be directors, and the same person may be elected to serve both as secretary and treasurer. The powers of the Bank are vested in the directors thereof and three directors of the Bank shall constitute a quorum. Action may be taken and motions and resolutions adopted by the Bank at any meeting thereof by the affirmative vote of at least three directors of the Bank. A vacancy in the directorship of the Bank shall not impair the right of a quorum to exercise all the powers and perform all the duties of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 1, eff. Feb. 14, 1972.)
§ 4575 Bonding of members
Before the issuance of any bonds or notes under this chapter, each director of the Bank shall execute a surety bond in the penal sum of $25,000.00 and the treasurer of the Bank shall execute a surety bond in the penal sum of $50,000.00. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of the director or treasurer, to be executed by a surety company authorized to transact business in the State of Vermont as surety and to be approved by the Attorney General and filed in the office of the Secretary of State. After the issuance of any bonds or notes by the Bank each director of the Bank shall maintain his or her surety bond in force. All costs of the surety bonds shall be borne by the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4576 Compensation; expenses
The directors of the Bank shall receive a per diem compensation in the amount of $30.00 for each day devoted to official duties and reimbursement for actual expenses necessarily incurred in the discharge of their duties. Notwithstanding any other law, an officer or employee of the State shall not be deemed to forfeit his or her office or employment or any benefits thereof by reason of his or her acceptance of the office of director of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1979, No. 59, § 18, eff. July 1, 1979.)
§ 4577 Staff
The Bank may employ such officers, agents, and employees as it may require and determine their qualifications, terms of office, duties, and compensation all without regard to 3 V.S.A. chapter 13.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
Subchapter 3 Powers and Prohibitions
§ 4591 General powers
The Bank has the following powers for carrying out the purposes of this chapter:
(1) to sue and be sued;
(2) to adopt an official seal and alter it at pleasure;
(3) to make and enforce rules for the conduct of its business and for use of its services and facilities;
(4) to maintain an office at any place within the State;
(5) to acquire, hold, use, and dispose of its income, revenues, funds, and monies;
(6) to acquire, rent, lease, hold, use, and dispose of other personal property for its purposes;
(7) to borrow money and to issue its negotiable bonds or notes and to provide for and secure the payment thereof and to provide for the rights of the holders thereof, and to purchase, hold, and dispose of any of its bonds or notes;
(8) to fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities;
(9) to accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States of America or from any governmental unit or any person, firm, or corporation, and to carry out the terms or provisions or make agreements with respect to any gifts or grants, and to do any and all things necessary, useful, desirable, or convenient in connection with procuring, acceptance, or disposition of gifts or grants;
(10) to do anything authorized by this chapter, through its officers, agents, or employees or by contracts with any person, firm, or corporation;
(11) to enter into and enforce all contracts necessary, convenient, or desirable for the purposes of the Bank or pertaining to any loan to a governmental unit or any purchase or sale of municipal bonds or revenue bonds or other investments or to the performance of its duties and execution or carrying out of any of its powers under this chapter;
(12) to purchase or hold municipal bonds and revenue bonds at such prices and in such manner as the Bank deems advisable, and to sell municipal bonds and revenue bonds acquired or held by it at such prices without relation to cost and in such manner as the Bank deems advisable, all consistent with the policy of the State as declared in section 2 of this act;
(13) to invest any funds or moneys of the Bank not then required for loan to governmental units and for the purchase of municipal bonds or revenue bonds, in the same manner as permitted for investment of funds belonging to the State or held in the Treasury, except as otherwise provided by this chapter;
(14) to prescribe any form of application or procedure required of a governmental unit for the loan or purchase of its municipal bonds or revenue bonds, and to fix the terms and conditions of that loan or purchase and to enter into agreements with governmental units with respect to any loan or purchase;
(15) to do all things necessary, convenient, or desirable to carry out the powers expressly granted or necessarily implied in this chapter;
(16) to maintain and administer the special funds of the State established pursuant to chapter 120 of this title.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1985, No. 127 (Adj. Sess.), § 2, eff. April 21, 1986; 1987, No. 55, §§ 7-9, eff. May 15, 1987; 1987, No. 75, § 2.)
§ 4592 Supplementary powers
The Bank, in addition to any other powers granted in this chapter, has the following powers:
(1) In connection with any loan to a governmental unit, to consider the need, desirability, or eligibility of the loan, the ability of the governmental unit to secure borrowed money from other sources and the costs thereof, and the particular public improvement or purpose to be financed by the municipal bonds or revenue bonds to be purchased by the Bank.
(2) To charge for its costs and services in review or consideration of any proposed loan to a governmental unit or purchase of municipal bonds or revenue bonds of a governmental unit, and to charge therefor whether or not the loan is made or the municipal bonds or revenue bonds are purchased.
(3) To establish any terms and provisions with respect to any loan to governmental units through the purchase of municipal bonds or revenue bonds by the Bank, including date and maturities of the bonds, provisions as to redemption or payment prior to maturity, and any other matters that are necessary, desirable, or advisable in the judgment of the Bank.
(4) To conduct examinations and hearings and to hear testimony and take proof, under oath or affirmation, at public or private hearings, on any matter material for its information and necessary to carry out this chapter.
(5) To issue subpoenas requiring the attendance of witnesses and the production of books and papers pertinent to any hearing before the Bank, or before one or more of the directors of the Bank appointed by it to conduct the hearing.
(6) To apply to any court, having territorial jurisdiction of the offense, to have punished for contempt any witness who refuses to obey a subpoena, or who refuses to be sworn or affirmed to testify, or who is guilty of any contempt after summons to appear.
(7) To procure insurance against any losses in connection with its property, operations, or assets in such amounts and from such insurers as it deems desirable.
(8) To the extent permitted under its contracts with the holders of bonds or notes of the Bank, to consent to any modification of the rate of interest, time, and payment of any installment of principal or interest, security, or any other term of bond or note, contract, or agreement of any kind to which the Bank is a party.
(9) To issue its bonds or notes that are secured by neither the Reserve Fund nor the Revenue Bond Reserve Fund, but which may be secured by such other funds and accounts as may be authorized by the Bank from time to time.
(10) To issue bonds, other forms of indebtedness, or other financing obligations or arrangements for projects relating to renewable energy, energy efficiency, climate adaptation, and projects that otherwise result in the reduction of greenhouse gas emissions.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, §§ 10, 11, eff. May 15, 1987; 2009, No. 45, § 15k, eff. May 27, 2009; 2023, No. 72, § 27, eff. June 19, 2023.)
§ 4593 Prohibited acts
Under this chapter, a bank may not:
(1) make loans of money to any person, firm, or corporation other than a government or a governmental agency or subdivision, or purchase securities issued by any person, firm, or corporation other than a governmental unit or for investment except as provided in this chapter;
(2) emit bills of credit, or accept deposits of money for time or demand deposit, or administer trust, or engage in any form or manner in, or in the conduct of, any private or commercial banking business, or act as a savings bank or savings and loan association;
(3) be or constitute a bank or trust company within the jurisdiction or under the control of the Department of Financial Regulation of the State, or the Commissioner thereof, or the Comptroller of the Currency of the United States of America or the Department of the Treasury thereof; or
(4) be or constitute a bank, banker, or dealer in securities within the meaning of or subject to the provisions of any securities, securities exchange, or securities dealers law, of the United States of America or of this State or of any other state.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38.)
§ 4594 Annual report; audit
On or before the last day of February in each year, the Bank shall make a report of its activities for the preceding calendar year to the Governor and to the General Assembly. Each report shall set forth a complete operating and financial statement covering its operations during the year. The Bank shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and the cost thereof shall be considered an expense of the Bank and a copy thereof shall be filed with the State Treasurer. 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 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 2013, No. 142 (Adj. Sess.), § 39.)
§ 4595 Annual budget
(a) On or before December 1 in each year, the Bank shall adopt an annual budget for the succeeding year. The budget shall set forth the general categories of expected expenditures and the amount on account of each and shall include a provision or reserve for contingencies or over expenditures as well as any additional material as the Bank may determine. Copies of the annual budget certified by the Chair of the Bank shall be promptly filed with the State Treasurer and the Director of Budget and Management and the annual budget shall not be effective until it is so filed.
(b) If for any reason the Bank does not adopt the annual budget on or before December 1, the budget for the preceding year shall be in effect for that year until the annual budget for the year is adopted.
(c) The Bank may at any time adopt an amended annual budget for the current calendar year, but the amended annual budget may not supersede any prior budget until it is approved by the State Treasurer as reasonable and necessary, and filed as required in the case of the annual budget.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4596 Care and custody of bonds
The Bank may enter into agreements or contracts with any bank, trust companies, banking or financial institutions within or without the State as may be necessary, desirable, or convenient in the opinion of the Bank for rendering services to the Bank in connection with the care, custody, or safekeeping of municipal bonds, revenue bonds, or other investments held or owned by the Bank and services in connection with the payment or collection of amounts payable as to principal or interest, and for services in connection with the delivery to the Bank of municipal bonds, revenue bonds, or other investments purchased by it or sold by it, and to pay the cost of those services. The Bank may also, in connection with any of the services to be rendered by any banks, trust companies, or banking or financial institutions as to the custody and safekeeping of any of its municipal bonds, revenue bonds, or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the Bank, is necessary or desirable for the purpose of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 12, eff. May 15, 1987.)
Subchapter 4 Form and Nature of Bonds and Notes
§ 4621 Form of obligation; faith and credit
(a) Bonds and notes issued under this chapter are not in any way a debt or liability of the State and do not create or constitute any indebtedness, liability or obligation of the State nor are they or do they constitute a pledge of the faith and credit of the State but all such bonds and notes, unless funded or refunded by bonds or notes of the Bank, are payable solely from revenues or funds pledged or available for their payment as authorized herein. Each bond and note other than bonds or notes issued in book entry form must contain on its face a statement to the effect that the Bank is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the Bank and that the State is not obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal of or the interest on the bonds or notes.
(b) The State does pledge to and agree with the holders of the bonds or notes issued under this chapter, that the State will not limit or restrict the rights hereby vested in the Bank to purchase, acquire, hold, sell, or dispose of municipal bonds, revenue bonds, or other investments or to make loans to governmental units or to establish and collect such fees or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of operation of the Bank, and to fulfill the terms of any agreement made with the holders of its bonds or notes or in any way impair the rights or remedies of the holders of those bonds or notes until the bonds and notes, together with interest thereon, and interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the holders, are fully met, paid, and discharged.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 2, eff. March 29, 1983; 1987, No. 55, § 13, eff. May 15, 1987.)
§ 4622 Negotiability of bonds or notes
Whether or not the notes and bonds are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code 9A V.S.A. § 1-101 et seq., the notes and bonds are hereby made negotiable instruments within the meaning of and for all the purposes of said Uniform Commercial Code, subject only to the provisions of the notes and bonds for registration or for their issuance in book entry form.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 3, eff. March 29, 1983.)
§ 4623 Bonds or notes as legal investment
Notwithstanding any other law, the State and all public officers, governmental units, and agencies thereof, 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, 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 issued under this chapter, and these bonds or notes are authorized security for any and all public deposits.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4624 Tax exemption
All property of the Bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments of the State or any subdivision thereof. All bonds or notes issued under this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose and those bonds and notes, and the interest thereon and the income therefrom, and all fees, charges, funds, revenues, income, and other monies pledged or available to pay or secure the payment of those bonds or notes, or interest thereon, are exempt from taxation except for transfer inheritance and estate taxes.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
Subchapter 5 Sale and Issuance of Bonds and Notes
§ 4641 Loans to governmental units
The Bank, for the purpose of this chapter, may lend money to governmental units through the purchase by the Bank of municipal bonds or revenue bonds of governmental units. The Bank, under this chapter, may issue its bonds and notes and may otherwise assist governmental units as provided in this chapter.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 5, Feb. 14, 1972; 1987, No. 55, § 14, eff. May 15, 1987.)
§ 4642 Amount and purpose; general obligation
(a) The Bank may issue its bonds or notes in such principal amounts as it shall deem necessary to provide funds for any purposes under this chapter, including:
(1) The making of loans;
(2) The payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds or notes issued by it whether the bonds or notes or interest to be funded or refunded have or have not become due;
(3) The establishment or increase of reserves to secure or to pay bonds or notes or interest thereon and all other costs or expenses of the Bank incident to and necessary or convenient to carry out its corporate purposes and powers.
(b) Except as otherwise provided in this chapter or by the Bank, every issue of bonds or notes shall be general obligations payable out of any revenues or funds of the Bank, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or funds. Any bonds or notes may be additionally secured by a pledge of any grant or contributions from the United States of America or the State or any governmental unit or any person, firm, or corporation or a pledge of any income or revenues, funds, or monies of the Bank from any source whatsoever.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4643 Form of issuance
(a) Bonds or notes of the Bank shall be authorized by resolution of the Bank and may be issued in one or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates of interest per annum or within such maximum rate, be in such denomination or denominations, be issued in coupon form payable to bearer, in registered form or in book entry form, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the State, and be subject to such terms of redemption, with or without premium, as the resolution provides.
(b) The State Treasurer may, at the direction of the Bank, act as transfer agent or registrar for the exchange or transfer of registered bonds and notes or maintain records so that bonds and notes in book entry form may be effected and the Bank may contract with or otherwise designate a bank, trust company, or other person to maintain records so that bonds and notes in book entry form may be effected. Such bank, trust company, or other person, which may include the federal government or any of its agencies or instrumentalities or any officer, agency, or instrumentality of the State, may be located or have its principal office inside or outside the State. Bonds and notes in book entry form shall be effected by means of entries on the records of the State Treasurer or other designated person that shall reflect the description of the issue, the principal amount, the interest rate, the maturity date, and the owner of the bonds or notes and such other information as is deemed appropriate. The State Treasurer or other designated person may effect conversion between book entry bonds and notes and registered bonds and notes for owners of bonds or notes who request such a change. The State Treasurer or other designated transfer agent or registrar shall issue a confirmation of the transaction in the form of a written advice.
(c) [Repealed.]
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983. No. 12, § 4, eff. March 29, 1983; 2015, No. 29, § 15.)
§ 4644 Sale price
Bonds or notes of the Bank may be sold at public or private sale at such price as the Bank determines.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4645 Administrative consent or conditions not required
Bonds or notes may be issued under this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the State, and without any other proceeding or the happening of any other conditions or things than those specifically required by this chapter.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4646 Approval of Governor and Treasurer
No resolution or other action of the Bank providing for the issuance of bonds may be adopted or otherwise made effective without the prior approval in writing of the Governor and the State Treasurer. The powers conferred by this section on the Governor and the State Treasurer shall be exercised with due regard for the rights of the holders of bonds of the Bank at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict, or alter the obligation or powers of the Bank or any director, officer, or representative of the Bank to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into by or on behalf of the Bank with respect to its bonds or for the benefit, protection, or security of the holders thereof.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4647 Payment or refunding of notes
The Bank may from time to time issue its notes under this chapter and pay and retire or fund or refund the notes from proceeds of bonds or of other notes, or from any other funds or monies of the Bank available for that purpose in accordance with any contract between the Bank and the holders of the notes. Unless provided otherwise in any contract between the Bank and the holders of notes, and unless the notes are otherwise paid, funded, or refunded, the proceeds of any bonds of the Bank issued among other things, to fund any outstanding notes, shall be held, used, and applied by the Bank to the payment and retirement of the principal of the notes and the interest due and payable thereon.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4648 Terms of agreement with bond or noteholder
In any resolution of the Bank authorizing, or relating to the issuance of any bonds or notes, the Bank, in order to secure the payment of the bonds or notes and in addition to its other powers, may covenant and contract with the holders of the bonds or notes:
(1) to pledge to any payment or purpose all or any part of its revenues to which its right then exists or may thereafter come into existence, and the monies derived therefrom, and the proceeds of any bonds or notes;
(2) to covenant against pledging all or any part of its revenues, or against permitting or suffering any lien on those revenues or its property;
(3) to covenant as to the use and disposition of any payments of principal or interest received by the Bank on municipal bonds, revenue bonds, or other investments held by the Bank;
(4) to covenant as to establishment of reserves or sinking funds, the making of provision for them, and the regulation and disposition thereof;
(5) to covenant with respect to or against limitations on any right to sell or otherwise dispose of any property of any kind;
(6) to covenant as to any bonds and notes to be issued and their limitations and their terms and conditions and as to the custody, application, and disposition of their proceeds;
(7) to covenant as to the issuance of additional bonds or notes or as to limitations on the issuance of additional bonds or notes and on the incurring of other debts;
(8) to covenant as to the payment of the principal of or interest on the bonds or notes, as to the sources and methods of payment, as to the rank or priority of any bonds or notes with respect to any lien or security or as to the acceleration of the maturity of any bonds or notes;
(9) to provide for the replacement of lost, stolen, destroyed, or mutilated bonds or notes;
(10) to covenant against extending the time for the payment of bonds or notes or interest thereon;
(11) to covenant as to the redemption of bonds or notes and privileges of exchange thereof for other bonds or notes of the Bank;
(12) to covenant as to any charges to be established and charged, the amount to be raised each year or other period of time by charges or other revenues and as to the use and disposition to be made thereof;
(13) to covenant to create or authorize the creation of special funds or monies to be held in pledge or otherwise for operating expenses, payment or redemption of bonds or notes, reserves, or other purposes and as to the use and disposition of the monies held in those funds;
(14) to establish the procedure, if any, by which the terms of any contract or covenant with or for the benefit of the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which the consent may be given;
(15) to covenant as to the custody of any of its properties or investments, the safe-keeping thereof, the insurance to be carried thereon, and the use and disposition of insurance monies;
(16) to covenant as to the time or manner of enforcement or restraint from enforcement of any rights of the Bank arising by reason of or with respect to nonpayment of any principal or interest of any municipal bonds or revenue bonds;
(17) to provide for the rights and liabilities, powers, and duties arising upon the breach of any covenant, condition, or obligation and to prescribe the events of default and the terms and conditions upon which any or all of the bonds, notes, or other obligations of the Bank shall become or may be declared due and payable before maturity and the terms and conditions upon which the declaration and its consequences may be waived;
(18) to vest in a trustee or trustees within or without the State such property, rights, powers, and duties in trust as the Bank may determine, which may include any of the rights, powers, and duties of any trustee appointed by the holders of any bonds or notes and to limit or abrogate the right of the holders of any bonds of the Bank to appoint a trustee under this chapter or limiting the rights, powers, and duties of the trustee;
(19) to pay the costs or expenses incident to the enforcement of the bonds or notes or of the resolution or of any covenant or agreement of the bank with the holders of its bonds or notes;
(20) to agree with any corporate trustee that may be any trust company or bank having the powers of a trust company within or without the State, as to the pledging or assigning of any revenues or funds to which the Bank has any rights or interest, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds or notes of the Bank and not otherwise in violation of law, and the agreement may provide for the restriction of the rights of any individual holder of bonds or notes of the Bank;
(21) to appoint and to provide for the duties and obligations of a paying agent or paying agents, or such other fiduciaries as the resolution may provide within or without the State;
(22) to limit the rights of the holders of any bonds or notes to enforce any pledge or covenant securing bonds or notes; and
(23) to make covenants other than and in addition to the covenants expressly authorized in this section, of like or different character, and to make covenants to do or refrain from doing such things as may be necessary, or convenient and desirable, in order to better secure bonds or notes or which, in the absolute discretion of the Bank, will tend to make bonds or notes more marketable, notwithstanding that the covenants or things may not be enumerated in this section.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, §§ 15, 16, eff. May 15, 1987.)
§ 4649 Purchase and disposition of own obligations
The Bank may purchase bonds or notes of the Bank out of any of its funds or money available therefor. The Bank may hold, cancel, or resell the bonds or notes subject to and in accordance with agreements with holders of its bonds or notes.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4650 Interest rates
Notwithstanding section 1759 of this title, or any other law applicable to or constituting any limitation on the maximum rate of interest per annum payable on bonds or notes, or as to annual interest cost to maturity of money borrowed or received upon issuance of bonds or notes, or purporting to regulate lenders every governmental unit may contract to pay interest on, or an interest cost per annum for, money borrowed from the Bank and evidenced by its municipal bonds purchased by the Bank notwithstanding any statutory limitation as to rate of interest per annum payable or as to annual interest cost to maturity of money borrowed by such governmental unit. Every governmental unit may contract with the Bank with respect to the loan or purchase and the contract shall contain the terms and conditions of the loan or purchase. Every governmental unit may pay fees and charges required to be paid to the Bank for its services. Notwithstanding sections 1759-1765 of this title or of any other law applicable to or constituting any limitation on the sale of municipal bonds or revenue bonds or notes, or purporting to regulate lenders any governmental unit may sell municipal bonds or revenue bonds or notes to the Bank without limitations as to denomination and the municipal bonds or revenue bonds or notes may be fully registered, registrable as to principal or in bearer form, may bear interest at a rate or rates in accordance with this section, may be evidenced in that manner and may contain other provisions not inconsistent herewith, and may be sold to the Bank without advertisement at a price of par and accrued interest, all as provided in the proceedings of the governing body of the governmental unit under which the municipal bonds or revenue bonds or notes are issued.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 17, eff. May 15, 1987; 1987, No. 203 (Adj. Sess.), § 20, eff. May 27, 1988.)
§ 4651 Exchange of coupon bonds
The governing body of the governmental unit may provide for the exchange of coupon bonds for fully registered bonds and of fully registered bonds for coupon bonds and for the exchange of the bonds after issuance for bonds of larger or smaller denominations, all according to the proceedings authorizing their issuance, provided the bonds in changed form or denominations are exchanged for the surrendered bonds in the same aggregate principal amounts and in a manner that no overlapping interest is paid, and the bonds in changed form or denominations bear interest at the same rate or rates and mature on the same date or dates as the bonds for which they are exchanged. When any exchange is made under this section the bonds surrendered by the holders at the time of the exchange shall be cancelled. The exchange may be made only at the request of the holders of the bonds to be surrendered. The governmental unit may require all expenses incurred in connection with the exchange to be paid by the holders. If any of the officers whose signatures appear on the bonds or coupons cease to be officers before the delivery of the bonds, their signatures shall be valid for all purposes, as if they had remained in office.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4652 Waiver of defenses; rights of holder
On the sale and issuance of any municipal bonds or revenue bonds to the Bank by any governmental unit, that governmental unit is deemed to agree that on the failure of that governmental unit to pay interest or principal on any of the municipal bonds or revenue bonds owned or held by the Bank when payable, all defenses to nonpayment are waived; and further, with respect to municipal bonds that constitute general obligation bonds supported by the full faith and credit of the municipality, upon nonpayment and demand on that governmental unit for payment, if funds are not available in its treasury to make payment, the governing body of that governmental unit shall forthwith assess a tax on the grand list of the governmental unit, sufficient to make payment with 12 percent interest thereon, and cause the tax to be collected within 60 days; and further, with respect to municipal bonds that do not constitute general obligation bonds supported by the full faith and credit of the municipality and revenue bonds, upon nonpayment and demand on that governmental unit for payment, such governmental unit shall make payment together with interest thereon of 12 percent, which shall be due and payable within 60 days; and further, notwithstanding any other law, including any law under which the municipal bonds or revenue bonds were issued by that governmental unit, the Bank upon nonpayment is constituted a holder or owner of the municipal bonds or revenue bonds as being in default. Also, notwithstanding any other law as to time or duration of default or percentage of holders or owners of bonds entitled to exercise rights of holders or owners of bonds in default, or to invoke any remedies or powers thereof or of any trustee in connection therewith or of any board, body, agency, or commission of the State having jurisdiction in the matter or circumstance, the Bank may thereupon avail itself of all other remedies, rights, and provisions of law applicable in that circumstance, and the failure to exercise or exert any rights or remedies within any time or period provided by law may not be raised as a defense by the governmental unit. All of the bonds of the issue of municipal bonds or revenue bonds of a governmental unit on which there is nonpayment, are for all of the purposes of this section deemed to be due and payable and unpaid. The Bank may carry out the provisions of this section and exercise all of the rights and remedies and provisions of law provided or referred to in this section.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 15, § 18, eff. May 15, 1987; 2023, No. 72, § 28, eff. June 19, 2023.)
§ 4653 Bond anticipation notes
Notwithstanding any law applicable to any governmental unit as to the period for temporary financing of any public improvement or purpose by issuance of its notes in anticipation of the issuance of permanent bonds or as to the renewal of bond anticipation notes, the Bank may purchase and the governmental unit may issue bond anticipation notes and may renew them from time to time provided that the bond anticipation notes, including renewals thereof, mature in such amounts and in such years not exceeding five years from the date of the original issuance as is agreed between the Bank and the governmental unit. In connection with the transaction and purchase of bond anticipation notes, the Bank may by agreement with the governmental unit impose any terms, conditions, and limitations as in its opinion are proper and for the purposes and security of the Bank and the holders of its bonds or notes. The failure of any governmental unit to comply with that agreement constitutes a failure of the governmental unit to pay principal of and interest on the bond anticipation notes under section 4652 of this title, and the Bank shall thereupon enforce all such rights, remedies, and provisions of law as it has under this section or are elsewhere provided.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4654 Marketability; certification
All municipal bonds, revenue bonds, or other investments of monies of the Bank provided for under this chapter must at all times be purchased in negotiable form, subject to provision for any registration in the name of the Bank or for issuance in book entry form pursuant to section 1881 of this title. All municipal bonds and revenue bonds at any time purchased by the Bank must upon delivery to the Bank be accompanied by an approving opinion of bond counsel.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 6, eff. Feb. 14, 1972; 1987, No. 55, § 19, eff. May 15, 1987.)
§ 4655 Presumption of validity
After issuance, all bonds or notes of the Bank shall be conclusively presumed to be fully authorized and issued by all the laws of this State, and any person or governmental unit shall be stopped from questioning their authorization, sale, issuance, execution, or delivery by the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
Subchapter 6 Special Funds
§ 4671 Reserve fund
(a) The Bank shall establish and maintain a special fund called the “Vermont Municipal Bond Bank Reserve Fund” in which there shall be deposited:
(1) All monies appropriated by the State for the purpose of the Fund;
(2) All proceeds of bonds required to be deposited therein by terms of any contract between the Bank and its bondholders or any resolution of the Bank with respect to the proceeds of bonds; and
(3) Any other monies or funds of the Bank that it determines to deposit therein.
(b) Monies in the Reserve Fund shall be held and applied solely to the payment of the interest on and principal of presently outstanding bonds of the Bank and any bonds issued on a parity therewith and any bonds issued to refund such bonds, all as they become due and payable and for the retirement of bonds. Money may not be withdrawn if it reduces the amount in the Reserve Fund to an amount less than the “required debt service reserve,” as defined in this subsection, except for payment of interest then due and payable on bonds and the principal of bonds then maturing and payable and for the retirement of bonds in accordance with the terms of any contract between the Bank and its bondholders and for which payments other monies of the Bank are not then available. As used in this subsection “required debt service reserve” means, as of any date of computation, the amount or amounts required to be on deposit in the Reserve Fund as provided by resolution of the Bank. Required debt service reserve shall not be required by resolution of the Bank to exceed “maximum debt service.” As used in this subsection “maximum debt service” means, as of any date of computation, the largest amount of money required by the terms of all contracts between the Bank and its bondholders to be raised in any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds and payments required by the terms of any contracts to sinking funds established for the payment or redemption of bonds, all calculated on the assumption that the bonds will cease to be outstanding after date of the computation by reason of the payment of the bonds at their respective maturities and the payments of the required moneys to sinking funds and the application thereof in accordance with the terms of all contracts to the retirement of bonds.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 7, eff. Feb. 14, 1972; 1987, No. 55, § 20, eff. May 15, 1987.)
§ 4672 Withdrawal or transfer
Monies in the Reserve Fund or the Revenue Bond Reserve Fund at any time in excess of such fund’s required debt service reserve, whether by reason of investment or otherwise, may, subject to the terms of any contract between the Bank and its bondholders or any resolution of the Bank, be withdrawn at any time by the Bank and transferred to any other fund or account of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 21, eff. May 15, 1987.)
§ 4673 Investment
(a) Monies at any time in the Reserve Fund may be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury.
(b) For purposes of valuation, investments in the Reserve Fund shall be valued at par if purchased at par or at amortized value, as such term is defined by resolution of the Bank, if purchased at other than par.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 8, eff. Feb. 14, 1972.)
§ 4674 Relation to bond sales
Notwithstanding any other provision of this chapter, bonds shall not be issued by the Bank unless there is in the Reserve Fund or Revenue Bond Reserve Fund, as applicable to such bonds, the required debt service reserve for all bonds then issued and outstanding and the bonds to be issued, provided, however, that the Bank may satisfy this requirement by depositing so much of the proceeds of the bonds to be issued, upon their issuance, as is needed to achieve the required debt service reserve. The Bank may at any time issue its bonds or notes for the purpose of increasing the amount in the Reserve Fund or the Revenue Bond Reserve Fund to the required debt service reserve, or to meet such higher or additional reserve as may be fixed by the Bank with respect to the fund.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 22, eff. May 15, 1987.)
§ 4675 Annual appropriation
In order to assure the maintenance of the required debt service reserve in each reserve fund established pursuant to this chapter, there shall be appropriated annually and paid to the Bank for deposit in each reserve fund, such sum as shall be certified by the Chair of the Bank to the Governor or to the Governor-Elect, as is necessary to restore such fund to an amount equal to the required debt service reserve. The Chair shall annually, on or before February 1, make and deliver to the Governor or to the Governor-Elect, his or her certificate stating the sum required to restore the fund to the amount aforesaid, and the Governor or Governor-Elect shall, on or before March 1, submit a request for appropriations for the sum so certified, and the sum so certified shall be appropriated and paid to the Bank during the then current State fiscal year.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 23, eff. May 15, 1987; 2011, No. 40, § 55b, eff. May 20, 2011.)
§ 4676 General Fund
(a) The Bank shall establish and maintain a fund called the “General Fund” in which there shall be deposited:
(1) fees received or charges made by the Bank for use of its services or facilities;
(2) any monies which the Bank shall transfer thereto from the reserve fund pursuant to section 4672 of this title from the Reserve Fund established pursuant to section 4671 of this title;
(3) monies received by the Bank as payments of principal of or interest on municipal bonds purchased by the Bank, or received as proceeds of sale of any municipal bonds or investment obligations of the Bank, or received as proceeds of sale of bonds or notes of the Bank, and required under the terms of any resolution of the Bank or contract with the holders of its bonds or notes to be deposited therein;
(4) any monies required under the terms of any resolution of the bank or contract with the holders of its bonds or notes to be deposited therein; and
(5) any monies transferred thereto from any other fund or made available for the purpose of the Fund by the State or for the operating expenses of the Bank; provided, however, that no such deposit or transfer shall be required if such action would impair in any way any contracts between the Bank and its bondholders or noteholders.
(b) any monies in the General Fund may, subject to any contracts between the Bank and its bondholders or noteholders, be transferred to the Reserve Fund established pursuant to section 4671 of this title, or if not so transferred, shall be used for the payment of the principal of or interest on bonds or notes of the Bank presently outstanding and any bonds or notes on a parity therewith, and any bonds or notes issued to refund such bonds or notes, all when they become due and payable, whether at maturity or upon redemption including payment of any premium upon redemption prior to maturity, and any monies in the General Fund may be used to make loans to governmental units under this chapter and for all other purposes of the Bank including payment of its operating expenses.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 24, eff. May 15, 1987; 2023, No. 72, § 29, eff. June 19, 2023.)
§ 4677 Operating expenses
No amount may be paid out of the General Fund or from any account therein, which account the Bank may establish therein for the purpose of payment of its operating expenses, for operating expenses of the Bank in any year in excess of the amount provided for the operating expenses of the Bank by the annual budget then in effect with respect to that year or any amendment thereof in effect at the time of the payment.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4678 Special accounts
The Bank may establish in the General Fund accounts, subaccounts or special accounts that in its opinion are necessary, desirable, or convenient for its purposes.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4679 Additional accounts
The Bank may establish additional reserves or other funds or accounts as may be, in its discretion, necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutions.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4680 Application of funds; excess
Money or investments in any fund or account of the Bank established or held for any bonds, notes, indebtedness, or liability to be paid, funded, or refunded by issuance of bonds or notes shall, unless the resolution authorizing the bonds or notes provides otherwise, be applied to the payment or retirement of the bonds, notes, indebtedness, or liability, and to no other purpose. If in any fund or account there are any monies in excess of the amount required for payment, funding, or refunding, the monies may be removed from that fund or account but only to the extent that the monies or investments thereafter remaining in the fund or account are not less than the outstanding bonds, notes, indebtedness, or liability of the Bank to be paid, funded, or refunded and for which that fund or account was established or held.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4681 Revenue Bond Reserve Fund
(a) The Bank shall establish and maintain a special fund called the “Vermont Municipal Bond Bank Revenue Bond Reserve Fund” in which there shall be deposited:
(1) all monies appropriated by the State for the purpose of such Fund;
(2) all proceeds of bonds required to be deposited therein by terms of any contract between the Bank and its bondholders or any resolution of the Bank with respect to the proceeds of bonds; and
(3) any other moneys or funds of the Bank which it determines to deposit therein; provided, however, that no such deposit shall be made if such action would impair in any way any contracts between the Bank and its bondholders or noteholders.
(b) Monies in the Revenue Bond Reserve Fund shall be held and applied solely to the payment of the interest on and principal of bonds of the Bank as provided by resolution of the Bank as they become due and payable and for the retirement of bonds. Money may not be withdrawn from the Revenue Bond Reserve Fund if it reduces the amount in the Revenue Bond Reserve Fund to an amount less than the “required debt service reserve,” as defined in this subsection, except for payment of interest then due and payable on bonds and the principal of bonds then maturing and payable and for retirement of bonds in accordance with the terms of any contract between the Bank and its bondholders and for which payments other monies of the Bank are not then available. As used in this subsection “required debt service reserve” means, as of any date of computation, the amount or amounts required to be on deposit in the Revenue Bond Reserve Fund as provided by resolution of the Bank. Required debt service reserve shall not be required by resolution of the Bank to exceed “maximum debt service reserve.” As used in this subsection “maximum debt service reserve” means, as of any date of computation, the largest amount of money required by the terms of all contracts between the Bank and its bondholders to be raised in any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds and payments required by the terms of any contracts to sinking funds established for the payment or redemption of bonds, all calculated on the assumption that the bonds will cease to be outstanding after date of the computation by reason of the payment of the bonds at their respective maturities and the payments of the required monies to sinking funds and the application thereof in accordance with the terms of all contracts to the retirement of bonds.
(c) Nothing contained in this section shall require the deposit of monies or funds in the Revenue Bond Reserve Fund which are required to be deposited in the Reserve Fund established pursuant to section 4671 of this chapter.
(Added 1987, No. 55, § 25, eff. May 15, 1987.)
§ 4682 Investment of Revenue Bond Reserve Fund
(a) Monies at any time in the Revenue Bond Reserve Fund may be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury.
(b) For purposes of valuation, investments in the Revenue Bond Reserve Fund shall be valued at the lowest of the par value, cost to the Bank or market value of such investments. Valuation on any particular date shall include the amount of interest then earned or accrued to that date on any monies or investments in the Revenue Bond Reserve Fund.
(Added 1987, No. 55, § 26, eff. May 15, 1987.)
§ 4683 Revenue Fund
(a) The Bank shall establish and maintain a fund called the “Revenue Fund” in which there shall be deposited:
(1) fees received or charges made by the Bank for use of its services or facilities;
(2) any monies that the Bank shall transfer thereto pursuant to section 4672 of this title from the Revenue Bond Reserve Fund established pursuant to section 4681 of this title;
(3) monies received by the Bank as payments of principal of or interest on municipal bonds or revenue bonds purchased by the Bank, or received as proceeds of sale of any municipal bonds or revenue bonds or investment obligations of the Bank, or otherwise in repayment of loans made by the Bank, or received as proceeds of sale of bonds or notes of the Bank, and required under the terms of any resolution of the Bank or contract with the holders of its bonds or notes to be deposited therein;
(4) any monies required under the terms of any resolution of the Bank or contract with the holders of its bonds or notes to be deposited therein; and
(5) any monies transferred thereto from any other fund or made available for the purpose of the Fund by the State or for the operating expenses of the Bank; provided, however, that no such deposit or transfer shall be made if such action would impair in any way any contracts between the Bank and its bondholders or noteholders.
(b) Any monies in the Revenue Fund may, subject to any contracts between the Bank and its bondholders or noteholders, be transferred to the Revenue Bond Reserve Fund, or if not so transferred, shall be used for the payment of the principal of or interest on bonds or notes of the Bank as provided by resolution of the Bank when they become due and payable, whether at maturity or upon redemption including payment of any premium upon redemption prior to maturity, and any monies in the Revenue Fund may be used for making loans to governmental units under this chapter and for all other purposes of the Bank including payment of its operating expenses.
(Added 1987, No. 55, § 27, eff. May 15, 1987; amended 2023, No. 72, § 30, eff. June 19, 2023.)
§ 4684 Revenue Fund operating expenses
No amount may be paid out of the Revenue Fund or from any account therein, which account the Bank may establish therein for the purpose of payment of its operating expenses, for operating expenses of the Bank in any year in excess of the amount provided for the operating expenses of the Bank by the annual budget then in effect with respect to that year or any amendment thereof in effect at the time of the payment.
(Added 1987, No. 55, § 28, eff. May 15, 1987.)
§ 4685 Special accounts in Revenue Fund
The Bank may establish in the Revenue Fund accounts, subaccounts, or special accounts which in its opinion are necessary, desirable, or convenient for its purposes.
(Added 1987, No. 55, § 29, eff. May 15, 1987.)
§ 4686 Vermont Infrastructure Sustainability Fund
(a) Creation. There is created the Vermont Infrastructure Sustainability Fund within the Vermont Bond Bank.
(b) Purpose. The purpose of the Fund is to provide capital to extend and increase capacity of water and sewer service and other public infrastructure in municipalities where lack of extension or capacity is a barrier to housing development.
(c) Administration. The Vermont Bond Bank may administer the Fund in coordination with and support from other State agencies, government component parts, and quasi-governmental agencies.
(d) Program parameters.
(1) The Vermont Bond Bank, in consultation with the Department of Housing and Community Development, shall develop program guidelines to effectively implement the Fund.
(2) The program shall provide low-interest loans or purchase bonds from municipalities to expand infrastructure capacity. Eligible activities include:
(A) preliminary engineering and planning;
(B) engineering design and bid specifications;
(C) construction for municipal water and wastewater systems;
(D) transportation investments, including those required by municipal regulation, the municipality’s official map, designation requirements, or other planning or engineering identifying complete streets and transportation and transit related improvements, including improvements to existing streets; and
(E) other eligible activities as determined by the guidelines produced by the Vermont Bond Bank in consultation with the Department of Housing and Community Development.
(e) Application requirements. Eligible project applications shall demonstrate:
(1) the project will create reserve capacity necessary for new housing unit development;
(2) the project has a direct link to housing unit production; and
(3) the municipality has a commitment to own and operate the project throughout its useful life.
(f) Application criteria. In addition to any criteria developed in the program guidelines, project applications shall be evaluated using the following criteria:
(1) whether there is a direct connection to proposed or in-progress housing development with demonstrable progress toward regional housing targets;
(2) whether the project is an expansion of an existing system;
(3) the proximity to a designated area;
(4) the project readiness and estimated time until the need for financing;
(5) the demonstration of financing for project completion or completion of a project component; and
(6) the relative need of the community per the housing targets established by the Department of Housing and Community Development.
(g) Award terms. The Vermont Bond Bank, in consultation with the Department of Housing and Community Development, shall establish award terms that may include:
(1) the maximum loan or bond amount;
(2) the maximum term of the loan or bond amount;
(3) the time by which amortization shall commence;
(4) the maximum interest rate;
(5) whether the loan is eligible for forgiveness and to what percentage or amount;
(6) the necessary security for the loan or bond; and
(7) any additional covenants required to further secure the loan or bond.
(h) Revolving fund.
(1) Any funds repaid or returned from the Infrastructure Sustainability Fund shall be deposited into the Fund and used to continue the program established in this section.
(2) The Bank may use the funds in conjunction with other Bank programs to accomplish the policy objectives outlined in this section.
(Added 2025, No. 69, § 3, eff. July 1, 2025.)
Subchapter 7 Protection of Bond and Noteholders
§ 4701 Rights of holders paramount
In order to carry out its purpose under this chapter of making loans to governmental units, by purchase of the municipal bonds or revenue bonds of those governmental units, and by receipt of its income from service charges and from payments of interest on the maturing principal of municipal bonds or revenue bonds purchased and held by it, and in order to produce revenues or income to the Bank sufficient at all times to meet its costs and expenses of operation under this chapter and to pay the principal of and interest on its outstanding bonds and notes when due, the Bank must at all times, and to the greatest extent possible, so plan to issue its bonds and notes and so lend money to governmental units by the purchase of municipal bonds or revenue bonds of governmental units so that the purpose is achieved without in any way jeopardizing any rights of the holders of bonds or notes of the Bank or affecting other matters under this chapter.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 30, eff. May 15, 1987.)
§ 4702 Default in payment
If the Bank defaults in the payment of principal or interest on any issue of notes or bonds after they become due, whether at maturity or upon call for redemption, and the default continues for thirty days, or if the Bank fails or refuses to comply with this chapter or defaults in any agreement made with the holders of any issue of notes or bonds, the holders of 25 per centum in aggregate principal amount of the outstanding notes or bonds of that issue, by instrument filed in the Office of the Clerk of the County of Washington and executed in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those notes or bonds for the purposes herein provided.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4703 Powers of trustee on default
A trustee appointed under section 4702 of this title may, and shall in the trustee’s name, upon written request of the holders of 25 per centum in principal amount of the outstanding notes or bonds:
(1) By suit, action, or proceeding, enforce all rights of the noteholders or bondholders, including the right to require the Bank to collect rates, charges, and other fees and to collect interest and amortization payments on loans made to governmental units and on municipal bonds, revenue bonds, and notes held by it adequate to carry out any agreement as to, or pledge of, the rates, charges, and other fees and of the interest and amortization payments, and to require the Bank to carry out any other agreements with the holders of the notes or bonds and to perform its duties under this chapter;
(2) Bring suit upon the notes or bonds;
(3) By action or suit, require the Bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(4) By action or suit in equity, enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds;
(5) Declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of 25 per centum of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences;
(6) The trustee shall in addition to the foregoing have all the powers necessary for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 31, eff. May 15, 1987; 2023, No. 72, § 31, eff. June 19, 2023.)
§ 4704 Superior Court jurisdiction
The Superior Courts have jurisdiction of any suit, action, or proceeding by a trustee on behalf of noteholders or bondholders. The venue of any suit, action, or proceeding shall be laid in the County of Washington.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 4705 Notice on default
Before declaring the principal of notes or bonds due and payable, the trustee must first give 30 days’ notice in writing to the Governor, the Bank, the State Treasurer, and the Attorney General of the State.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4706 Personal liability
Neither the members of the Bank nor any person executing bonds or notes issued under this chapter are liable personally on the bonds or notes.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4707 Exemption from execution and sale
All property of the Bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against it nor may any judgment against the Bank be a charge or lien upon its property, but nothing herein contained shall apply to or limit the rights of the holder of any bonds or notes to pursue any remedy for the enforcement of any pledge or lien given by the Bank on its revenues or other monies.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4708 Pledge of revenues; lien thereof
Any pledge of revenues or other monies made by the Bank is binding from the time when the pledge is made. Revenues or other monies so pledged and thereafter received by the Bank shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the Bank, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded except in the records of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
§ 4709 Federal insurance or guaranty
The Bank may obtain from any department or agency of the United States of America any available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part thereof, on any bonds or notes issued by the Bank, or on any municipal bonds or revenue bonds of governmental units purchased or held by the Bank, and notwithstanding any other provisions of this chapter may enter into any agreement or contract with respect to any insurance or guaranty except to the extent that it would in any way impair or interfere with the ability of the Bank to perform and fulfill the terms of any agreement made with the holders of the bonds or notes of the Bank.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 2, eff. Feb. 14, 1972; 1987, No. 55, § 32, eff. May 15, 1987.)
§ 4710 Surety for deposits by Bank
All banks, trust companies, savings banks, investment companies, and other persons carrying on a banking business are hereby authorized to give to the Bank a good and sufficient undertaking with such sureties as shall be approved by the Bank to the effect that the Bank or banking institution as hereinbefore described shall faithfully keep and pay over to the order of or upon the warrant of the Bank or its authorized agent all such funds as may be deposited with it by the Bank and agreed interest thereon under or by reason of this chapter, at such times or upon such demands as may be agreed with the Bank or in lieu of these sureties, deposit with the Bank or its authorized agent or any trustee therefor or for the holders of any bonds, as collateral, such securities as the Bank may approve. The deposits of the Bank may be evidenced by an agreement in such form and upon such terms and conditions as may be agreed upon by the Bank and the depository bank or banking institution.
(Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)
Chapter 120 Special Environmental Revolving Fund
Subchapter 1 General Provisions
§ 4751 Declaration of policy
It is hereby declared to be in the public interest to foster and promote timely expenditures by municipalities for water systems, clean water projects, and solid waste management, each of which is declared to be an essential governmental function when undertaken and implemented by a municipality. It is also declared to be in the public interest to promote expenditures for certain existing privately owned public water systems and certain privately owned potable water supply systems to bring those systems into compliance with federal and State standards and to protect public health and the environment. Additionally, it is declared to be in the public interest to promote clean water projects to protect and improve the quality of waters of the State.
(Added 1987, No. 75, § 1; amended 1997, No. 62, § 65, eff. June 26, 1997; 1999, No. 148 (Adj. Sess.), § 50, eff. May 24, 2000; 2007, No. 52, § 45, eff. May 28, 2007; 2015, No. 103 (Adj. Sess.), § 24, eff. May 12, 2016; 2017, No. 185 (Adj. Sess.), § 1, eff. May 28, 2018.)
§ 4752 Definitions
As used in this chapter:
(1) “Agency” means the Agency of Natural Resources.
(2) “Bond Bank” means the Vermont Municipal Bond Bank established by section 4571 of this title.
(3) “Municipality” means any city, town, village, town school district, incorporated school district, union school district, or other school district, fire district, consolidated sewer district, consolidated water district, solid waste district, or statewide or regional water quality utility or mechanism organized under laws of the State.
(4) “Municipal bond” means a bond or note or evidence of debt constituting a general obligation of a municipality.
(5) “Secretary” means the Secretary of Natural Resources or his or her authorized representative.
(6) “Noncommunity water system” shall have the same meaning as in 10 V.S.A. § 1671.
(7) “Privately owned water system” means any water system that is not owned or operated by a municipality.
(8) “Community water system” shall have the same meaning as in 10 V.S.A. § 1671.
(9) “Public water supply systems” means a public water system as that term is defined in 10 V.S.A. § 1671, except for bottled water facilities and for-profit noncommunity systems, which includes water systems, water treatment plants, structures, pipe lines, storage facilities, pumps, and attendant facilities necessary to develop a source of water, and to treat and convey it in proper quantity and quality.
(10) [Repealed.]
(11) “Clean water project” means “water pollution abatement and control facilities,” as defined in 10 V.S.A. § 1571, and such equipment, conveyances, structural or nonstructural facilities, and natural resources projects that are needed for and appurtenant to the prevention, management, treatment, storage, or disposal of stormwater, sewage, or waste, or that provide water quality benefits, including a wastewater treatment facility, combined sewer separation facilities, an indirect discharge system, a wastewater system, flood resiliency work related to a structural facility, or a groundwater protection project.
(12) “Disadvantaged municipality” means a municipality or the served area of a municipality that:
(A) has a median household income below the State average median household income as determined by the Secretary and that, after construction of the proposed water supply improvements, will have an annual household user cost greater than one percent of the median household income as determined by the Secretary; or
(B) has a median household income equal to or greater than the State average median household income as determined by the Secretary and that, after construction of the proposed water supply improvements, will have an annual household user cost greater than 2.5 percent of the median household income as determined by the Secretary.
(13) “Potable water supply” shall have the same meaning as in 10 V.S.A. § 1972.
(14) “Sewage” shall have the same meaning as used in section 3501 of this chapter.
(15) “Stormwater” shall have the same meaning as stormwater runoff in section 1264 of this title.
(16) “Waste” shall have the same meaning as used in 10 V.S.A. § 1251.
(17) “Designer” means a person authorized to design wastewater systems and potable water supplies as identified in 10 V.S.A. § 1975.
(18) “Natural resources project” means a project to protect, conserve, or restore natural resources, including the acquisition of easements and land, for the purpose of providing water quality benefits.
(19) “Sponsorship program” means an arrangement in which natural resources projects are paired with water pollution abatement and control facilities projects, as defined in 10 V.S.A. § 1571, for the purposes of water quality improvement. Under the sponsorship program, a municipality may obtain a loan for both a natural resources project and a water pollution abatement and control facilities project. The loan rate and terms shall be adjusted to forgive all or a portion of the natural resources project over the life of the loan. Only municipalities and nonprofit organizations may receive funds under a sponsorship program.
(20) “Hardship municipality” means a municipality served by a municipally owned public community water system that:
(A) has a residential population of 250 or less;
(B) has an annual household user cost that exceeds $1,000.00 or 1.5 percent of the median household income after construction of the water supply improvements project as determined by the Secretary; and
(C) requires improvements to address an imminent public health hazard or a substantial threat to public health as determined by the Secretary.
(Added 1987, No. 75, § 1; amended 1987, No. 76, § 18; 1989, No. 30, § 8, eff. April 27, 1989; 1989, No. 276 (Adj. Sess.), § 36, eff. June 20, 1990; 1997, No. 62, § 66, eff. June 26, 1997; 1999, No. 148 (Adj. Sess.), § 51, eff. May 24, 2000; 2011, No. 138 (Adj. Sess.), § 30, eff. May 14, 2012; 2015, No. 103 (Adj. Sess.), § 25, eff. May 12, 2016; 2017, No. 168 (Adj. Sess.), § 20, eff. May 22, 2018; 2017, No. 185 (Adj. Sess.), § 2, eff. May 28, 2018; 2017, No. 197 (Adj. Sess.), § 19; 2019, No. 72, § E.700.)
§ 4753 Revolving loan funds; authority to spend; report
(a) There is hereby established a series of special funds to be known as:
(1) The Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund, which shall be used, consistent with federal law, to provide loans for planning and construction of clean water projects, including acquisitions of project-related easements, land, options to purchase land, and temporary or permanent rights-of-way, and for implementing related management programs.
(2) The Vermont Pollution Control Revolving Fund, which shall be used to provide loans to municipalities and State agencies for planning and construction of clean water projects, including acquisitions of project-related easements, land, options to purchase land, and temporary or permanent rights-of-way.
(3) The Vermont Environmental Protection Agency (EPA) Drinking Water State Revolving Fund, which shall be used to provide loans to municipalities and certain privately owned water systems for:
(A) planning, designing, constructing, repairing, or improving public water supply systems, including acquisitions of project-related easements, land, options to purchase land, and temporary or permanent rights-of-way, in order to comply with State and federal standards and protect public health and the environment; and
(B) implementing related management programs.
(4) The Vermont Solid Waste Revolving Fund, which shall be used to provide loans to municipalities, including union municipal districts formed under chapter 121, subchapter 3 of this title, for planning solid waste handling and disposal facilities as enumerated in section 2203a of this title, and for constructing publicly owned solid waste handling and disposal facilities as enumerated in section 2203a of this title.
(5) The Vermont Drinking Water Planning Loan Fund, which shall be used to provide loans to municipalities and privately owned, nonprofit community water systems, for conducting feasibility studies and for the preparation of preliminary engineering planning studies and final engineering plans and specifications for improvements to public water supply systems in order to comply with State and federal standards and to protect public health. The Secretary may forgive up to $50,000.00 of the unpaid balance of a loan made from the Vermont Drinking Water Planning Loan Fund to municipalities after project construction is substantially completed or upon approval of a plan. The Secretary shall establish amounts, eligibility, policies, and procedures for loan forgiveness in the annual State Intended Use Plan (IUP), as required by the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., with public review and comment prior to finalization and submission to the U.S. Environmental Protection Agency.
(6) The Vermont Drinking Water Source Protection Fund, which shall be used to provide loans to municipalities for purchasing land or conservation easements in order to protect public water sources and ensure compliance with State and federal drinking water regulations.
(7) The Vermont Drinking Water Emergency Use Fund, which shall be within the control of the Secretary. Disbursements from the Fund may be made by the Secretary for costs required to undertake the following emergency actions that the Secretary considers necessary to protect public health:
(A) collecting and analyzing samples of drinking water;
(B) hiring contractors to perform or cause to be performed infrastructure repairs of public water supply systems;
(C) hiring certified operators to perform operational activities at public water supply systems; and
(D) providing or causing to be provided bottled or bulk water for public water supply systems due to problems with quality or quantity, or both.
(8) [Repealed.]
(9) The Vermont Drinking Water Revolving Loan Fund, which shall be used to provide loans to a municipality for the design, land acquisition, if necessary, and construction of a potable water supply when a household in the municipality has been disconnected involuntarily from a public water supply system for reasons other than nonpayment of fees.
(10) The Vermont Wastewater and Potable Water Revolving Loan Fund, which shall be used to provide loans to individuals, in accordance with section 4763b of this title, for the design and construction of repairs to or replacement of wastewater systems and potable water supplies when the wastewater system or potable water supply is a failed system or supply as defined in 10 V.S.A. § 1972, or when a designer demonstrates that the wastewater system or potable water supply has a high probability of failing. The amount of up to $275,000.00 from the fees collected pursuant to 3 V.S.A. § 2822(j)(4) or from the Fund established in subdivision (1) of this subsection, or a combination of both, shall be deposited into this Fund at the beginning of each fiscal year to ensure a minimum balance of available funds of $275,000.00 exists for each fiscal year.
(b)(1) Each of such funds shall be established and held separate and apart from any other funds or monies of the State and shall be used and administered exclusively for the purpose of this chapter with the exception of transferring funds from the Vermont Drinking Water Planning Loan Fund and the Vermont Drinking Water Source Protection Fund to the Vermont Environmental Protection Agency (EPA) Drinking Water State Revolving Fund, and from the Vermont Pollution Control Revolving Fund to the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund, when authorized by the Secretary.
(2) These funds shall be administered by the Bond Bank on behalf of the State, except that:
(A) the Vermont EPA Drinking Water State Revolving Fund and the Vermont Drinking Water Planning Loan Fund shall be administered by VEDA concerning loans to privately owned public water systems in accordance with subchapter 3 of this chapter;
(B) the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund shall be administered by VEDA concerning loans to private entities for clean water projects in accordance with subchapter 4 of this chapter; and
(C) the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund and the Vermont Wastewater and Potable Water Revolving Loan Fund may be administered by a community development financial institution, as that term is defined in 12 U.S.C. § 4702, that is contracted with by the State for the purpose of providing loans to individuals in accordance with section 4763b of this chapter.
(3) The funds shall be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury.
(4) The funds shall consist of the following:
(A) such sums as may be appropriated or transferred thereto from time to time by the General Assembly, the State Emergency Board, or the Joint Fiscal Committee during such times as the General Assembly is not in session;
(B) principal and interest received from the repayment of loans made from each of such funds;
(C) capitalization grants and awards made to the State by the United States of America for any of the purposes for which such funds have been established;
(D) interest earned from the investment of fund balances;
(E) private gifts, bequests, and donations made to the State for any of the purposes for which such funds have been established; and
(F) other funds from any public or private source intended for use for any of the purposes for which such funds have been established.
(c) In addition to the purposes established in subsection (a) of this section, the various loan funds created by this section may be used for one or more of the purposes established in section 4757 of this title.
(d) [Repealed.]
(e) The Secretary may bring an action under this subsection or other available State and federal laws against the owner or permittee of the public water supply systems to seek reimbursement to the Vermont Drinking Water Emergency Use Fund for all disbursements from the Fund made pursuant to subdivision (a)(7) of this section. To the extent compatible with the urgency of the situation, the Secretary shall provide an opportunity for the responsible water system owner or permittee to undertake the necessary actions under the direction of the Secretary prior to making disbursements.
(Added 1987, No. 75, § 1; amended 1993, No. 233 (Adj. Sess.), § 62, eff. June 21, 1994; 1995, No. 62, § 44, eff. April 26, 1995; 1997, No. 62, § 67, eff. June 26, 1997; 1997, No. 134 (Adj. Sess.), § 1; 1997, No. 148 (Adj. Sess.), § 51, eff. April 29, 1998; 1999, No. 109 (Adj. Sess.), § 2; 1999, No. 148 (Adj. Sess.), § 52, eff. May 24, 2000; 2001, No. 61, § 38, eff. June 16, 2001; 2001, No. 109 (Adj. Sess.), § 11; eff. May 16, 2002; 2001, No. 149 (Adj. Sess.), § 90, eff. June 27, 2002; 2003, No. 63, § 50, eff. June 11, 2003; 2007, No. 52, §§ 43, 46, eff. May 28, 2007; 2007, No. 130 (Adj. Sess.), § 7, eff. May 12, 2008; 2011, No. 104 (Adj. Sess.), § 28e, eff. May 7, 2012; 2011, No. 161 (Adj. Sess.), § 13; 2013, No. 137 (Adj. Sess.), § 1, eff. May 22, 2014; 2015, No. 103 (Adj. Sess.), § 26, eff. May 12, 2016; 2015, No. 172 (Adj. Sess.), § E.709.2, eff. June 8, 2016; 2017, No. 168 (Adj. Sess.), § 21, eff. May 22, 2018; 2017, No. 185 (Adj. Sess.), § 3, eff. May 28, 2018; 2017, No. 197 (Adj. Sess.), § 20; 2019, No. 141 (Adj. Sess.), § 1, eff. July 13, 2020; 2023, No. 79, § 5, eff. July 1, 2023.)
§ 4753a Awards from revolving loan funds
(a) Pollution control. The General Assembly shall approve all categories of awards made from the special funds established by section 4753 of this title for water pollution abatement and facility construction, in order to assure that such awards conform with State policy on water quality and pollution abatement, and with the State policy that municipal entities shall receive first priority in the award of public monies for such construction, including monies returned to the revolving funds from previous awards. To facilitate this legislative oversight, the Secretary of Natural Resources shall annually on or before January 15 report to the House Committees on Corrections and Institutions and on Natural Resources, Fish, and Wildlife and the Senate Committees on Institutions and on Natural Resources and Energy on all awards made from the relevant special funds during the prior and current fiscal years, and shall report on and seek legislative approval of all the types of projects for which awards are proposed to be made from the relevant special funds during the current or any subsequent fiscal year. Where feasible, the specific projects shall be listed. 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.
(b) [Repealed.]
(c) [Repealed.]
(d) Loan forgiveness; pollution control. Notwithstanding any other provision of law regarding loan forgiveness, upon the award of a loan from the Vermont Environmental Protection Agency Pollution Control Revolving Fund (CWSRF), the Secretary of Natural Resources, in a manner that is consistent with federal grant provisions, may provide loan forgiveness.
(e) Loan forgiveness; drinking water.
(1) Notwithstanding any other provision of law regarding loan forgiveness, upon the award of a loan from the Vermont Environmental Protection Agency Drinking Water State Revolving Fund (DWSRF), the Secretary of Natural Resources, in a manner that is consistent with federal grant provisions, may provide loan forgiveness.
(2) Notwithstanding any other provision of law regarding loan forgiveness, upon the award of a loan from the Vermont Drinking Water State Revolving Loan Fund, the Secretary of Natural Resources may provide loan forgiveness for preliminary engineering and final design costs when a municipality undertakes such engineering on behalf of a household that has been disconnected involuntarily from a public water supply system for reasons other than nonpayment of fees, provided it is not the same municipality that is disconnecting the household.
(f) Loan forgiveness standard. The Secretary shall establish standards, policies, and procedures as necessary for implementing subsections (d) and (e) of this section for allocating the funds among projects and for revising standard priority lists in order to comply with requirements associated with federal capitalization grant agreements.
(Added 1997, No. 148 (Adj. Sess.), § 52, eff. April 29, 1998; amended 2007, No. 52, § 47, eff. May 28, 2007; 2011, No. 117 (Adj. Sess.), § 4; 2011, No. 161 (Adj. Sess.), § 15; 2013, No. 142 (Adj. Sess.), § 40; 2015, No. 26, § 39, eff. May 18, 2015; 2015, No. 97 (Adj. Sess.), § 58; 2015, No. 103 (Adj. Sess.), § 27, eff. May 12, 2016; 2017, No. 113 (Adj. Sess.), § 159a.)
§ 4753b Acceptance of funds
(a) The Commissioner of Environmental Conservation, with the approval of the Secretary of Natural Resources, may accept federal grants made available through the federal Clean Water Act and the federal Drinking Water Act in accordance with this chapter. Acceptance of this grant money is hereby approved, provided all notifications are made under subsection 4760(a) of this title.
(b) The Commissioner shall report receipt of a grant under this section to the Chairs of the Senate Committee on Institutions and the House Committee on Corrections and Institutions and the Joint Fiscal Committee.
(Added 2009, No. 43, § 38, eff. May 27, 2009; amended 2013, No. 142 (Adj. Sess.), § 41; 2015, No. 131 (Adj. Sess.), § 28.)
Subchapter 2 Loans to Municipalities and Individuals
§ 4754 Loan application
A municipality may apply for a loan, the proceeds of which shall be used to acquire, design, plan, construct, enlarge, repair, or improve a clean water project, public water supply systems as defined in subdivision 4752(9) of this title, or a solid waste handling and disposal facility, or certain privately-owned clean water projects as described in section 4763 of this title, or to implement a related management program. In addition, the loan proceeds shall be used to pay the outstanding balance of any engineering planning advances made to the municipal applicant under this chapter and determined by the Secretary to be due and payable following construction of the improvements to be financed by the proceeds of the loan. The Bond Bank may prescribe any form of application or procedure required of a municipality for a loan hereunder. The application shall include such information as the Bond Bank shall deem necessary for the purpose of implementing this chapter.
(Added 1987, No. 75, § 1; amended 1987, No. 76, § 18; 1999, No. 148 (Adj. Sess.), § 53, eff. May 24, 2000; 2001, No. 109 (Adj. Sess.), § 12, eff. May 16, 2002; 2015, No. 103 (Adj. Sess.), § 28, eff. May 12, 2016; 2017, No. 185 (Adj. Sess.), § 4, eff. May 28, 2018.)
§ 4755 Loan; loan agreements; general provisions
(a) Except as provided by subsection (c) of this section, the Bond Bank may make loans to a municipality on behalf of the State for one or more of the purposes set forth in section 4754 of this chapter. Each of the loans shall be made subject to the following conditions and limitations:
(1) No loan shall be made for any purpose permitted under this chapter other than from the revolving fund in which the same purpose is included.
(2) The total amount of loan out of a particular revolving fund shall not exceed the balance of that fund.
(3) The loan shall be evidenced by a municipal bond, payable by the municipality over a term not to exceed 40 years or the projected useful life of the project, whichever is less, except:
(A) there shall be no deferral of payment;
(B) the term of the loan shall not exceed 30 years when required by section 4763c of this title;
(C) the loan may be evidenced by any other permitted debt instrument payable as permitted by chapter 53 of this title; and
(D) the term of the loan shall not exceed 30 years for clean water projects.
(4) Notwithstanding any other provisions of law, municipal legislative bodies may execute notes and incur debt on behalf of municipalities:
(A) with voter approval at a duly warned meeting, for amounts less than $75,000.00;
(B) by increasing previously approved bond authorizations by up to $75,000.00 to cover unanticipated project costs or the cost of directly and functionally related enhancements;
(C) without voter approval for a natural resources project under the sponsorship program, as defined in section 4752 of this title, provided that:
(i) the amount of the debt incurred does not exceed an amount to be forgiven or cancelled upon the completion of the project; and
(ii) the municipality obtains voter approval for the paired water pollution abatement and control facilities project under the sponsorship program, pursuant to the requirements set forth in chapter 53 of this title; or
(D) without voter approval for municipal clean water and public water supply system projects receiving loan forgiveness, provided that the amount of debt incurred does not exceed the amount to be forgiven or cancelled upon completion of the project.
(5) The rate of interest charged for the loans made to municipalities under this chapter, or the manner of determining the same, shall be established from time to time by the State Treasurer after consultation with the Secretary taking into consideration the current average rate on outstanding marketable obligations of the State as of the last day of the preceding month. The rate of interest shall be no less than zero percent and no more than the market interest rate, as determined by the Bond Bank, except as provided in section 4763c of this title. An administrative fee of no more than two percent shall be charged for the loans made to municipalities under this chapter from the Clean Water State Revolving Fund and the Vermont Environmental Protection Agency Drinking Water State Revolving Fund. The Secretary shall establish the method used to determine such administrative fee. Fee proceeds shall be deposited into a nonlapsing account and be held separately from the funds established pursuant to section 4753 of this title. Monies from such account shall be used to pay the costs of administering each of the funds established by subsection 4753(a) of this title, and any excess shall be transferred to the appropriate account established by subsection 4753(a) of this title.
(b) Loans made to a municipality by the Bond Bank on behalf of the State under this chapter shall be evidenced by and made in accordance with the terms and conditions specified in a loan agreement to be executed by the Bond Bank on behalf of the State and the municipality. The loan agreement shall specify the terms and conditions of loan repayment by the municipality, as well as the terms, conditions, and estimated schedule of disbursement of loan proceeds. Disbursement of loan proceeds shall be based upon certification of the loan recipient showing that costs for which reimbursement is requested have been incurred and paid by the recipient. The recipient shall provide supporting evidence of payment upon the request of the Department. Partial payments of loan proceeds shall be made not more frequently than monthly. Interest costs incurred in local short-term borrowing of the loan amount shall be reimbursed as part of the loan. The loan agreement shall state the term and interest rate of the loan, the scheduling of loan repayments, and such other terms and conditions as shall be deemed necessary by the Bond Bank.
(c) The Vermont Economic Development Authority shall make loans on behalf of the State when the loan recipient is a privately owned public water system. Such loans shall be issued and administered pursuant to subchapter 3 of this chapter.
(d) [Repealed.]
(e) For the purposes of this chapter, a State administrative department as authorized in Title 3 shall be deemed a municipality and subject to the terms and conditions applicable to municipalities; provided, however, that a State administrative department deemed a municipality shall only receive State assistance under this chapter if the department has a surplus of funds at the end of each fiscal year after all municipal loan applicants have received committed funds.
(Added 1987, No. 75, § 1; amended 1987, No. 219 (Adj. Sess.), § 5, eff. May 27, 1988; 1989, No. 276 (Adj. Sess.), § 37, eff. June 20, 1990; 1997, No. 62, § 69, eff. June 26, 1997; 1997, No. 148 (Adj. Sess.), § 53, eff. April 29, 1998; 2001, No. 61, § 39, eff. June 16, 2001; 2015, No. 26, § 40, eff. May 18, 2015; 2015, No. 97 (Adj. Sess.), § 87; 2015, No. 103 (Adj. Sess.), § 29, eff. May 12, 2016; 2017, No. 185 (Adj. Sess.), § 5, eff. May 28, 2018; 2019, No. 42, § 36, eff. May 30, 2019; 2019, No. 141 (Adj. Sess.), § 2, eff. July 13, 2020.)
§ 4756 Eligibility certification
(a) No construction loan or loan for the purchase of land or conservation easements to a municipality shall be made under this chapter, nor shall any part of any revolving fund that is designated for project construction be expended under section 4757 of this title, until such time as:
(1) The Secretary shall certify to the Bond Bank that all water supply and wastewater permits, land use, subdivision, public building, and discharge permits necessary to construct the improvements to be financed by the loan will be issued to the applicant municipality prior to disbursement of funds under the loan for construction;
(2) The applicant municipality shall certify to the Bond Bank that it will have secured all State and federal permits, licenses, and approvals necessary to construct the improvements to be financed by the loan prior to expending funds under the loan;
(3) The applicant municipality shall certify to the Bond Bank that it has established a rate charge or assessment schedule that will generate annually sufficient revenue to pay the principal of and interest on the municipal bond or other debt instrument that evidences the construction loan made by the Bond Bank to the municipality under this chapter and to pay reasonably anticipated costs of operating and maintaining the financed project and the system of which it is a part. A covenant by the municipality to set, collect, and apply rates, charges, and assessments under section 3313, 3348, 3616, or 3679 of this title shall be sufficient for the purposes of this certification requirement. When the financing of the project anticipates revenues from the sale of electricity, evidence shall be submitted showing that construction of the project has been authorized and that rates for the project have been approved by the Public Utility Commission;
(4) The applicant municipality shall certify to the Bond Bank that it has created a fund under section 2804 of this title, or by any other means permitted by law, including adoption of a resolution or covenant by the legislative branch of the applicant municipality, which fund shall be used only to repair, replace, improve, or enlarge the project for which the loan is made;
(5) The applicant municipality, and the project to be financed by the proceeds of the loan, have been designated by the Agency, or a department thereof, as eligible to participate in a construction or implementation program funded wholly or in part by the State or the United States of America;
(6) The Secretary shall certify to the Bond Bank that any management program to be financed under subdivision 4753(a)(1) and section 4754 of this title is in conformance with all applicable State and federal laws, and all rules and regulations adopted thereunder;
(7) The Secretary shall certify to the Bond Bank that the loan eligibility priority established under section 4758 of this chapter entitles the applicant municipality to immediate financing or assistance under this chapter;
(8) The Secretary shall certify to the Bond Bank the outstanding balance of engineering planning advances paid to the applicant municipality under 24 V.S.A. chapter 120 and included within the loan application submitted under section 4754 of this chapter;
(9) The applicant municipality, in the case of applications by towns, cities, and incorporated villages, and with respect to all loans awarded after July 1, 1992, shall certify to the Bond Bank that the project conforms to a duly adopted capital budget and program, consistent with chapter 117 of this title, for meeting the water supply, pollution control, or solid waste needs of the municipality; and
(10) The applicant municipality, in the case of an application by a district, shall certify to the Bond Bank that the project conforms to a capital budget and program duly adopted by the district in accordance with the provisions of its charter.
(b) The Bond Bank may make loans to a municipality for the preparation of final engineering plans and specifications subject to the following conditions and limitations:
(1) The loan shall be evidenced by a note, executed by the municipality, payable over a term not to exceed 30 years at zero percent interest in equal annual payments.
(2) The Secretary of Natural Resources shall have certified to the Bond Bank that the project:
(A) has priority for award of a planning loan;
(B) for which final engineering plans are to be prepared, is described in a preliminary engineering plan or facilities plan that has been approved by the Secretary; and
(C) is in conformance with applicable State and federal law and rules and regulations adopted thereunder.
(c) The Bond Bank may make loans to a municipality for the preparation of preliminary engineering planning studies or facilities plans subject to the conditions and limitations of subdivisions (b)(1) and (2)(A) of this section.
(d) Loans awarded from the same revolving fund under subsections (b) and (c) of this section may be consolidated, and may also be consolidated with loans awarded under subsection (a) of this section. One loan may be issued for construction and preparation of final engineering plans and specifications.
(e) The legislative body of a municipality may execute notes and incur debt on behalf of the municipality under subsections (b) and (c) of this section without public approval, provided that such debt shall be included in any subsequent public authorization of municipal indebtedness necessary to construct the project for which the planning loans were used. A municipality desiring to secure public authorization of debt incurred under subsections (b) and (c) of this section may utilize procedures authorized under section 1786a of this title, and may be refunded through a consolidation under subsection (d) of this section.
(f) The Bond Bank may adopt simplified procedures for processing and awarding loans authorized under subsections (b) and (c) of this section.
(g) The Secretary shall not certify a solid waste project without first finding that the proposed project conforms to the State and local solid waste management plans adopted in accordance with 10 V.S.A. chapter 159. Until such plans are adopted the Secretary shall certify that the project will promote the goals and purposes of 10 V.S.A. chapter 159 and the Solid Waste Task Force report.
(Added 1987, No. 75, § 1; amended 1987, No. 246 (Adj. Sess.), § 2, eff. June 13, 1988; 1993, No. 180 (Adj. Sess.), § 2; 1995, No. 185 (Adj. Sess.), § 53, eff. May 22, 1996; 1997, No. 62, § 70, eff. June 26, 1997; 1997, No. 134 (Adj. Sess.), § 2; 1997, No. 148 (Adj. Sess.), § 54, eff. April 29, 1998; 2015, No. 26, § 41, eff. May 18, 2015; 2015, No. 97 (Adj. Sess.), § 59; 2017, No. 74, § 109.)
§ 4757 Revolving loan funds; additional uses
In addition to providing a source of funds from which loans may be made to municipalities under this chapter, each fund created under section 4753 of this chapter may be used for one or more of the following purposes:
(1) To make loans, to refund bonds or notes of a municipality issued after March 7, 1985 for sewerage works, or after July 1, 1993 for water supply systems for the purpose of financing the construction of any capital improvements or management program described in section 4753 and certified under section 4756 of this title.
(2) To guarantee or insure, directly or indirectly, the payment of notes or bonds issued or to be issued by a municipality for the purpose of financing the construction of any capital improvement or management program described in section 4754 of this title and certified under section 4756.
(3) To guarantee or insure, directly or indirectly, funds established by municipalities for the purpose of financing construction of any capital improvement described in section 4754 of this title.
(4) To invest available fund balances, and to credit the net interest income thereon to the particular fund providing investment funds.
(5) To pay the costs of the Bond Bank, VEDA, and the agency associated with the administration of each fund; provided, however, that no more than four percent of the aggregate of the highest fund balances in any fiscal year shall be used for such purposes, and that a separate account be established outside the Drinking Water State Revolving Fund for such purposes. As used in this subsection, costs shall include fiscal, clerical, administrative, and issuance expenditures directly attributable and allocated to the maintenance implementation and administration of the loan funds created under this chapter.
(6) To pay from the Vermont Environmental Protection (EPA) Pollution Control Revolving Fund or the Vermont Wastewater and Potable Water Revolving Loan Fund the costs of administration of loans awarded under section 4763b of this title.
(Added 1987, No. 75, § 1; amended 1997, No. 62, § 71, eff. June 26, 1997; 2013, No. 137 (Adj. Sess.), § 2, eff. May 22, 2014; 2023, No. 79, § 6, eff. July 1, 2023.)
§ 4758 Loan priorities
(a) Periodically, and at least annually, the Secretary shall prepare and certify to the Bond Bank a project priority list of those municipalities whose publicly or privately owned clean water projects are eligible for financing or assistance under this chapter. In determining financing availability for clean water projects under this subchapter, the Secretary shall apply the criteria adopted pursuant to 10 V.S.A. § 1628.
(b) [Repealed.]
(Added 1987, No. 75, § 1; amended 1997, No. 62, § 72, eff. June 26, 1997; 1999, No. 148 (Adj. Sess.), § 54, eff. May 24, 2000; 2001, No. 109 (Adj. Sess.), § 13, eff. May 16, 2002; 2015, No. 103 (Adj. Sess.), § 30, eff. May 12, 2016; 2017, No. 185 (Adj. Sess.), § 6, eff. May 28, 2018.)
§ 4759 Regulations
The Secretary and the Bond Bank may adopt rules and policies necessary to implement the provisions of this chapter in order to ensure the self-sustaining nature of the funds created under section 4753 of this chapter, and also to ensure compliance with the requirements of Title VI of the federal Clean Water Act and section 1452 of the federal Safe Drinking Water Act, and with any regulations promulgated by the U.S. Environmental Protection Agency which may require the State to implement a State environmental review process as a condition to receipt of federal funding.
(Added 1987, No. 75, § 1; amended 1997, No. 62, § 73, eff. June 26, 1997; 1997, No. 134 (Adj. Sess.), § 3.)
§ 4760 Contractual authority; reports
(a) The Secretary and the Bond Bank may enter into agreements on behalf of the State with agencies of the United States of America as may be necessary to obtain grants and awards in furtherance of the stated purposes for which the loan funds created under section 4753 of this title are established; provided, however, that notification of each of such agreements shall be made in a timely fashion to the Chair of the House Committee on Appropriations and the Senate Committee on Appropriations while the General Assembly is in session, and at all other times to the Chair of the Joint Fiscal Committee, and further provided that acceptance of any such grant or award be approved as provided by law.
(b) [Repealed.]
(Added 1987, No. 75, § 1; amended 1993, No. 59, § 23, eff. June 3, 1993; 1997, No. 62, § 74, eff. June 26, 1997; 2013, No. 142 (Adj. Sess.), § 94.)
§ 4761 Noncontestability
No action at law or in equity shall be brought or maintained that directly or indirectly challenges, attacks, or questions or in any manner contests the formation, or the existence as a body corporate and politic of any municipality whose bonds, notes, or other instruments of debt issued and held by the Bond Bank on behalf of the State after six months from the date of issue; nor shall any action at law or in equity be brought or maintained that directly or indirectly challenges, attacks, or questions or in any manner contests the legality or validity of bonds, notes, or other instruments of debt, issued or unissued, voted by a municipality for the purpose of financing any project eligible for financing under any loan fund created under section 4753 of this chapter after six months from the date upon which such municipality met pursuant to warning and voted affirmatively to issue bonds, notes, or other form of debt to finance in whole or in part any such eligible project, or upon vote of a question of rescission thereof, whichever occurs later. This section shall be construed liberally to effect the legislative purpose to validate and make certain the legal existence of all municipalities whose bonds, notes, or other instruments of debt have been issued and are held by the Bond Bank on behalf of the State for any of the purposes stated in section 4753, and to bar every right to question in any manner the existence of any such municipality or the validity of any bond, note, or other instrument of debt voted by it for such purposes, and to bar every remedy therefor notwithstanding any defects or irregularities, jurisdictional or otherwise, after expiration of the six-month period established in this section.
(Added 1987, No. 75, § 1.)
§ 4762 Delinquent loan payments
Delinquent loan payments due the bank under section 4755 of this title may, with an interest rate of ten percent per annum greater than the interest rate of the loan, be recovered by action in a court of competent jurisdiction against the political subdivision liable therefore or may be deducted, with interest, by, or at the request of, the bank from any other monies payable to such subdivision by any department or agency of the State.
(Added 1987, No. 75, § 1.)
§ 4763 Loans to municipalities for privately owned clean water projects
(a) Where the Secretary has determined that a privately owned clean water project is the preferred alternative to abate or control a pollution problem or to provide water quality benefits, a loan may be made to a municipality from the Vermont Environmental Protection Agency Pollution Control Revolving Fund established in section 4753 of this title. In such cases, the following conditions shall apply:
(1) Guaranteed repayment of the loan will be based on a municipal bond, but actual repayment may be made with funds from the owner, as set forth in an agreement between the owner and the municipality.
(2) In all cases, there shall be a binding agreement between the owner and the municipality that provides for the proper operation and maintenance of the privately owned clean water project for at least the term of the loan.
(3) All conditions and limitations of section 4755 of this title apply to loans made under this section.
(4) No construction loan shall be made to a municipality under this subsection, nor shall any part of any revolving loan made under this subsection be expended until all of the following take place:
(A) The Secretary certifies to the Bond Bank that all land use, subdivision, public building, and water supply and wastewater permits necessary to construct and operate any improvements to be financed by the loan have been issued to the owner of the privately owned clean water project.
(B) The applicant municipality certifies to the Bond Bank that the owner has secured all State and federal permits, licenses, and approvals necessary to construct and operate the clean water project to be financed by the loan.
(C) The Secretary certifies to the Bond Bank that the loan eligibility priority established under section 4758 of this title entitles the applicant municipality to immediate financing or assistance under this chapter.
(D) The applicant municipality, in the case of applications by towns, cities, and incorporated villages, and with respect to all loans awarded after July 1, 1992, certifies to the Bond Bank that the project conforms to a duly adopted capital budget and program, consistent with chapter 117 of this title, for meeting the pollution control needs of the municipality.
(E) The applicant municipality, in the case of an application by a district, certifies to the Bond Bank that the project conforms to a capital budget and program duly adopted by the district in accordance with the provisions of its charter.
(b) The Bond Bank may make loans to a municipality for the preparation of final engineering plans and specifications for the construction of a privately owned clean water project or element of such a project in the same manner as set forth in subsection 4756(b) of this title.
(Added 1999, No. 148 (Adj. Sess.), § 55, eff. May 24, 2000; amended 2017, No. 185 (Adj. Sess.), § 7, eff. May 28, 2018.)
§ 4763a Loans to municipalities for privately owned potable water supplies
When a household has been involuntarily disconnected from a public water supply system and that disconnection did not occur as a result of nonpayment of fees, a loan may be made to a municipality from the Vermont Drinking Water Revolving Loan Fund, established in section 4753 of this title, for the design, land acquisition if necessary, and construction of a potable water supply, as that term is defined in 10 V.S.A. chapter 64. In such cases, the following conditions shall apply:
(1) Guaranteed repayment of the loan will be based on a municipal bond, but actual repayment may be made with funds from the owner of the potable water supply, as set forth in an agreement between the owner and the municipality.
(2) All conditions and limitations of section 4755 of this title shall apply to loans made under this section.
(3) No loan shall be made to a municipality under this section nor shall any part of any revolving loan made under this section be expended until both of the following take place:
(A) The Secretary certifies to the Bond Bank that the wastewater system and potable water supply permit necessary for the design and construction of the proposed potable water supply to be financed by the loan have been issued to the owner of the supply.
(B) The applicant municipality certifies to the Bond Bank that the owner of the proposed potable water supply has secured all State and federal permits, licenses, and approvals necessary to construct and operate the improvements to be financed by the loan.
(Added 2011, No. 104 (Adj. Sess.), § 28f, eff. May 7, 2012; amended 2017, No. 185 (Adj. Sess.), § 8, eff. May 28, 2018.)
§ 4763b Loans to individuals for failed wastewater systems and failed potable water supplies
(a) Notwithstanding any other provision of law to the contrary, when the wastewater system or potable water supply serving only single-family and multifamily residences either meets the definition of a failed supply or system in 10 V.S.A. § 1972 or is demonstrated by a designer to have a high probability of failing, the Secretary of Natural Resources may lend monies to an owner of one or more of the residences from the Vermont Wastewater and Potable Water Revolving Loan Fund established in section 4753 of this title. In such cases, the following conditions shall apply:
(1) a loan may only be made to an owner with a household income equal to or less than 200 percent of the State average median household income;
(2) a loan may only be made to an owner who resides in one of the residences served by the failed supply or system on a year-round basis;
(3) [Repealed.]
(4) when the failed supply or system also serves residences owned by persons other than the loan applicant, a loan may only be made for an equitable share of the cost to repair or replace the failed supply or system that is determined through agreement of all of the owners of residences served by the failed system or supply;
(5) no construction loan shall be made to an individual under this subsection, nor shall any part of any revolving loan made under this subsection be expended, until all of the following take place:
(A) the Secretary of Natural Resources determines that if a wastewater system and potable water supply permit is necessary for the design and construction of the project to be financed by the loan, the permit has been issued to the owner of the failed system or supply; and
(B) the individual applying for the loan certifies to the Secretary of Natural Resources that the proposed project has secured all State and federal permits, licenses, and approvals necessary to construct and operate the project to be financed by the loan;
(6) all funds from the repayment of loans made under this section shall be deposited into the Vermont Wastewater and Potable Water Revolving Loan Fund.
(b) Notwithstanding any other provision of law to the contrary, when the wastewater system serving only single-family and multifamily residences either meets the definition of a failed system in 10 V.S.A. § 1972 or is demonstrated by a designer to have a high probability of failing, the Secretary of Natural Resources may lend monies to an owner of one or more of the residences from the Vermont Wastewater and Potable Water Revolving Loan Fund and capitalized by money that has been transferred from the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund pursuant to subdivision 4753(a)(10) of this title, provided that no State funds are used. In such cases, all of the following conditions shall apply:
(1) A loan may only be made to an owner with a household income equal to or less than 200 percent of the State average median household income.
(2) A loan may only be made to an owner who resides in one of the residences served by the failed system on a year-round basis.
(3) A loan may only be made to an owner who demonstrates sufficient means to pay the principal and interest on the loan.
(4) A loan may only be made for a project that is a clean water project the Secretary has designated as a priority for receipt of financial assistance.
(5) When the failed system also serves residences owned by persons other than the loan applicant, a loan may only be made for an equitable share of the cost to repair or replace the failed system that is determined through agreement of all of the owners of residences served by the failed system.
(6) No construction loan shall be made to an individual under this subsection, nor shall any part of any revolving loan made under this subsection be expended, until all of the following take place:
(A) the Secretary of Natural Resources determines that if a wastewater system and potable water supply permit is necessary for the design and construction of the project to be financed by the loan, the permit has been issued to the owner of the failed system; and
(B) the individual applying for the loan certifies to the Secretary of Natural Resources that the proposed project has secured all State and federal permits, licenses, and approvals necessary to construct and operate the project to be financed by the loan.
(7) Loans shall be awarded at or below market interest rates.
(8) All funds from the repayment of loans made under this subsection shall be deposited into the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund.
(c) Loans awarded under this section:
(1) shall include a loan repayment schedule that commences not later than one year after completion of the funded project for which loan funds have been issued; and
(2) shall not be used for the operation and maintenance expenses, or laboratory fees for monitoring, of a wastewater system or potable water supply.
(d) The Secretary of Natural Resources shall establish standards, policies, and procedures as necessary for the implementation of this section. The Secretary may establish criteria to extend the payment period of a loan or to waive all or a portion of the loan amount.
(Added 2011, No. 161 (Adj. Sess.), § 14; amended 2013, No. 51, § 42, eff. May 29, 2013; 2017, No. 168 (Adj. Sess.), § 22, eff. May 22, 2018; 2017, No. 197 (Adj. Sess.), § 21; 2023, No. 79, § 6, eff. July 1, 2023.)
§ 4763c Loans to municipalities for municipal public water supply systems
(a) The Secretary may certify to the Vermont Municipal Bond Bank established by section 4571 of this title the award of a loan to a municipality to assist with a public water supply system project, when the Secretary finds that:
(1) the project is necessary;
(2) the proposed type, size, and estimated cost of the project are suitable for its intended purpose; and
(3) the municipality will have the technical, financial, and managerial ability to operate the facility in compliance with federal and State law.
(b) The certification by the Secretary shall specify the interest rate, and indicate which of the following loan conditions concerning construction loans apply:
(1) The term shall not exceed 30 years, and the annual interest rate, plus the administrative fee, shall be not more than three percent or less than zero percent, except that when the applicant municipality is disadvantaged as defined by subdivision 4752(12) of this title, the term shall not exceed 40 years. When the applicant municipality is disadvantaged as defined in subdivision 4752(12)(A), the annual interest rate, plus the administrative fee, shall be not less than minus three percent.
(2) In no instance shall the annual interest rate, plus the administrative fee, be less than necessary to achieve an annual household user cost equal to one percent of the median household income of the applicant municipality or served area, taking into account:
(A) debt retirement of the project, including any monies a municipality may borrow to match federal funds available to the Vermont EPA Drinking Water State Revolving Fund pursuant to section 4763d of this title;
(B) prior drinking water projects; and
(C) estimated annual operation and maintenance costs as determined by the Secretary.
(3) Loans awarded to a municipality that has not initiated repayment prior to January 1, 2019 may be extended as provided by subdivisions (b)(1) and (b)(2) of this section.
(c) A municipal legislative body may execute a loan agreement under this subsection provided the loan is authorized by municipal voters and secured by the full faith and credit of the municipality.
(d) A loan shall be issued and administered pursuant to this chapter.
(e) Loans shall be available to the extent funds are available and according to priorities established by the Secretary.
(f) For purposes of this section, the Secretary shall determine the median household income of a municipality from the most recent federal census data available when the priority list used for funding the project was approved, or at the option of an applicant municipality, based on the recommendation of an independent contractor hired by the municipality and approved by the Secretary. The determination of the Secretary shall be final. The cost of an independent contractor may be included in the total cost of a project.
(g) Loans awarded for the purpose of refinancing old debt shall be for a term of no more than 20 years and at an interest rate set by the State Treasurer at no less than zero percent and no more than the market interest rate, as determined by the Bond Bank, except that municipalities or private water system owners that qualify for loan awards under section 4770 of this title and that incurred debt and initiated construction after April 5, 1997 may receive loans at interest rates and terms pursuant to subdivision (b)(2)(A) of this section.
(h) Loans awarded for the purpose of conducting feasibility studies and preparation of engineering plans and designs shall be for a term of no more than five years at an interest rate of zero percent.
(i) [Repealed.]
(j) The Secretary may forgive up to $25,000.00 of a loan from the Vermont Environmental Protection Agency (EPA) Drinking Water State Revolving Fund to municipalities for improvements to public school water systems following substantial completion of the project. The Secretary shall establish amounts, eligibility, policies, and procedures for loan forgiveness in the annual State Intended Use Plan (IUP), as required by the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., with public review and comment prior to finalization and submission to the EPA.
(k) Subject to the interest rate and administrative fee limitations of subsection (b) of this section, the Secretary may designate projects as U.S. Department of Agriculture Rural Development-Vermont EPA Drinking Water State Revolving Fund jointly funded projects, and reduce the Vermont EPA revolving fund interest rate, plus administrative fee, in order to make the total loan cost of the joint loan to the municipality equivalent to the total loan cost of a separately funded Vermont EPA revolving loan for the same project.
(Added 2015, No. 103 (Adj. Sess.), § 31, eff. May 12, 2016; amended 2017, No. 185 (Adj. Sess.), § 9, eff. May 28, 2018; 2019, No. 42, § 37, eff. May 30, 2019; 2019, No. 141 (Adj. Sess.), § 3, eff. July 13, 2020; 2021, No. 170 (Adj. Sess.), § 16, eff. July 1, 2022.)
§ 4763d Municipal match of federal revolving funds
(a) A municipality may choose to provide the State money necessary to match federal monies available to the Vermont EPA Drinking Water State Revolving Fund established by subdivision 4753(a)(3) of this title, and thereby become eligible to receive a loan from the Revolving Fund in the amount of the total cost of a water facility project approved under this section. Such a loan from the Revolving Fund, for up to the total project cost, shall be approved by municipal voters and secured by the full faith and credit of the municipality or anticipated revenues from municipal water charges.
(b) The amount of such a municipal match of federal funds shall be equal to one-sixth of the total project cost, which shall constitute a sum in addition to the amount of a loan for the total project cost to be received by the municipality from the Revolving Fund. A municipality is authorized to borrow monies needed for the match amount, from sources other than the Revolving Fund, which shall be approved by municipal voters and secured by the full faith and credit of the municipality or anticipated revenues from municipal water charges, or a municipality may use other funds or tax revenues available to it for this purpose.
(c) Upon request of the owner of a privately owned public water system, a municipality may apply for and support an application for a community development block grant to receive use of State and federal funds, provided:
(1) the private water system owner agrees to pay all administrative and legal costs incurred by the municipality in pursuit of the grant;
(2) the municipality finds that the project to be supported by the grant is consistent with applicable local and regional plans, and local ordinances or other local enactments;
(3) the private water system owner, to the extent practicable, undertakes the administration of logistical and legal work necessary to prepare the application materials; and
(4) the private water system owner agrees to hold the municipality harmless from any claims of liability arising from the grant application or project.
(d) The Secretary may use federal funds to award grants to municipalities to complete studies, or for start-up costs associated with the physical and operational consolidation of public water systems or the interconnection of public water systems. The Secretary shall establish amounts, eligibility, priorities, policies, and procedures in the annual State Intended Use Plan (IUP), as required by the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.
(Added 2015, No. 103 (Adj. Sess.), § 32, eff. May 12, 2016.)
§ 4764 Planning
(a) Engineering planning advance. A municipality or a combination of two or more municipalities desiring an advance of funds for engineering and land use planning for public water supply systems, as defined in subdivision 4752(9) of this title, or improvements, or for clean water projects or improvements, may apply to the Department for an advance under this chapter. As used in this subsection, “engineering planning” may include source exploration, surveys, reports, designs, plans, specifications, or other engineering services necessary in preparation for construction of the types of systems or facilities referred to in this section. Not more than 25 percent of funds awarded to a municipality as a planning advance pursuant to this subsection may be utilized to evaluate land use implications of facilities, including impacts on the State Planning Goals as set forth in section 4302 of this title, availability of housing, and economic development.
(b) Regional engineering planning. The Department, with the approval of the Secretary, may use up to ten percent of the total capital appropriation for construction grants to undertake regional engineering planning and process research. Funds approved for regional engineering planning may be awarded directly to a lead municipality and administered in accordance with this chapter.
(c) Funding. In each fiscal year, the Department may use up to 30 percent of the total capital appropriation for construction grants provided under 10 V.S.A. chapter 55 to award engineering planning advances.
(d) Technical assistance from Regional Planning Commission. Any municipality may contract with the Regional Planning Commission established under section 4341 of this title to assist in administration and management of the planning advance and coordination of engineering services and to evaluate land use implications. Costs associated with these services from the Regional Planning Commission shall be eligible for reimbursement under an engineering planning advance described in subsection (a) of this section.
(Added 2015, No. 103 (Adj. Sess.), § 33, eff. May 12, 2016; amended 2017, No. 185 (Adj. Sess.), § 13, eff. May 28, 2018; 2021, No. 50, § 29, eff. June 1, 2021.)
§ 4765 Application for loans to municipalities
The application shall be supported by data covering:
(1) a description of the project;
(2) a description of the engineering service to be performed;
(3) an explanation of the need for the project;
(4) an estimate of the cost of the project;
(5) the amount of advance requested;
(6) a schedule for project implementation; and
(7) such other information and assurances as the Department may require.
(Added 2015, No. 103 (Adj. Sess.), § 34, eff. May 12, 2016; 2019, No. 141 (Adj. Sess.), § 4, eff. July 13, 2020; 2021, No. 20, § 260.)
§ 4766 Award of advance
(a) The Department may award an engineering planning advance, as defined in section 4764 of this title, in an amount determined by standards established by the Department, and pursuant to the following:
(1) for public water supply systems, as defined in subdivision 4752(9) of this title, when it finds the same to be necessary in order to preserve or enhance the quality of water provided to the inhabitants of the municipality, or to alleviate an adverse public health condition, or to allow for orderly development and growth of the municipality, except that no funds may be awarded until the Department determines that the applicant has complied with the provisions of 10 V.S.A. § 1676a, unless such funds are solely for the purpose of determining the effect of the proposed project on agriculture; or
(2) for planning of clean water projects, in order to enable a municipality to comply with water quality standards established under 10 V.S.A. chapter 47.
(b) The Department shall award an advance for engineering planning under this section only when it finds:
(1) that the cost of the project is reasonable for its intended purpose; and
(2) that local funds are not readily available.
(Added 2015, No. 103 (Adj. Sess.), § 35, eff. May 12, 2016; 2017, No. 185 (Adj. Sess.), § 14, eff. May 28, 2018.)
§ 4767 Payment of awards
On receipt of the engineering planning documents and their approval by the Department, the Department shall certify the award to the Commissioner of Finance and Management who shall issue his or her warrant for payment of the award from the construction grant funds available to the Department. The Department may direct the Commissioner of Finance and Management to issue his or her warrant for partial payments of the award upon receipt and approval of portions of the total engineering work to be performed under the advance, together with the recipient’s certification that costs for which reimbursement has been requested have been incurred and paid by the recipient municipality. The recipient shall provide supporting evidence of payment upon the request of the Department. Partial payments shall be made not more frequently than monthly. Interest costs incurred in local short-term borrowing of the engineering planning advance shall be reimbursed as part of the advance.
(Added 2015, No. 103 (Adj. Sess.), § 36, eff. May 12, 2016.)
§ 4768 Repayment of advances
Advances under this subchapter shall be repaid when construction of the facilities or any portion thereof is undertaken. Where a construction grant or loan is authorized by the Department for the project, the amount of the outstanding advances shall be retained from the initial payments of the grant or loan funds. In other instances, if repayment is not made within 60 days upon demand by the Department, the sum shall bear interest at the rate of 12 percent per annum from the date payment is demanded by the Department to the date of payment by the municipality. The Department may approve proportional repayment when construction is initiated on a small portion of the planned project.
(Added 2015, No. 103 (Adj. Sess.), § 37, eff. May 12, 2016.)
§ 4769 Loans to hardship municipalities
(a) Waiver of bond vote. A hardship municipality may receive a loan for an eligible project that includes a loan subsidy of up to $200,000.00 in the form of 100 percent principal forgiveness with no interest or administrative fee from funds authorized in subdivision 4753(a)(3) of this title, subject to the availability of such loan subsidy. Notwithstanding the provisions of subdivision 4755(a)(3) of this title, the loan is not required to be evidenced by a municipal bond up to the amount to be forgiven.
(b) Waiver of reimbursement method required in statute. Notwithstanding the provisions of subsection 4755(b) of this title, loan funds may be disbursed to a hardship municipality for its approved project upon receipt by the Department of eligible project invoices without prior payment by the municipality.
(Added 2019, No. 72, § E.700.1.)
Subchapter 3 Private Loans for Privately Owned Public Water Systems
§ 4770 Eligibility
(a) For the purpose of this subchapter, “VEDA” means the Vermont Economic Development Authority which is authorized to make loans on behalf of the State under this chapter when the loan recipient is a privately-owned public water system. Such loans shall be issued and administered by VEDA pursuant to this subchapter.
(b) The owner or owners of a privately-owned community water system or a privately-owned nonprofit, noncommunity public water system may apply to VEDA for a loan from the Vermont EPA Drinking Water State Revolving Fund established under subchapter 1 of this chapter, the proceeds of which may be used to acquire requisite permits, design, plan, construct, repair, or improve an existing privately-owned public community water system in order to comply with federal and State standards and protect the public health. In addition, the owner or owners of a privately-owned, nonprofit community water system may apply to VEDA for a loan from the Vermont Drinking Water Planning Loan Fund established in section 4753 of this chapter.
(1) A municipality, as defined under section 126 of Title 1, is not eligible for a loan under this subchapter.
(2) A nonprofit organization is eligible to apply for a loan under this subchapter if that organization qualifies as tax exempt.
(c) VEDA and the Secretary may prescribe any form of application or procedure required of the applicant for a loan hereunder, and may impose an application and an administrative fee determined reasonable and necessary to cover administrative costs. Fee proceeds shall be deposited in the administrative fee account established in subsection 4755(a) of this chapter. The loan application shall request such information as VEDA deems necessary to implement this subchapter.
(d) Notwithstanding the eligibility criteria of subsection (a) of this section, loan proceeds may not be used for:
(1) laboratory fees for monitoring;
(2) operations and maintenance expenses; or
(3) projects primarily intended to serve future growth.
(Added 1997, No. 62, § 75, eff. June 26, 1997; amended 1997, No. 134 (Adj. Sess.), § 4; 1997, No. 148 (Adj. Sess.), § 50, eff. April 29, 1998; 2001, No. 61, § 40, eff. June 16, 2001.)
§ 4771 Conditions of loan agreement
(a) VEDA may make loans to applicants on behalf of the State for one or more of the purposes set forth in subsection 4770(b) of this title. Each such loan shall be made subject to the following conditions:
(1) The loan shall be evidenced by a note payable over a term not to exceed 30 years. Repayment shall commence not later than one year after completion of the project for which loan funds have been applied.
(2) The loan shall be secured with assets as determined by VEDA. VEDA may also require that the applicant assign all or a portion of the water system revenues as security for the loan, or may require the establishment of a reserve fund.
(3) The loan recipient shall establish a dedicated source of revenue for repayment of the loan which may include a pledge of revenue from user charges, tap fees, development charges, and pledges of accounts receivable and the proceeds therefrom.
(4) The rate of interest charged for loans shall be set by the State Treasurer, taking into consideration prevailing borrowing rates available to similarly situated applicants from private lenders and administrative fees to be charged to applicants. VEDA, in cooperation with the Secretary, shall periodically recommend interest rates to be set by the State Treasurer which are the lowest practicable rates consistent with maintaining the long-term integrity of the Fund. The interest rate set by the State Treasurer may be less than the prevailing borrowing rates available to similarly situated applicants from private lenders, but not less than zero percent.
(5)(A) Notwithstanding subdivision (4) of this subsection, a privately owned nonprofit community type system may qualify for a 40-year loan term at an interest rate, plus administrative fee, to be established by the Secretary of Natural Resources that shall be not more than three percent or less than minus three percent, provided that the applicant system meets the income level and annual household user cost requirements of a disadvantaged municipality as defined in subdivision 4752(12)(A) of this title, and at least 80 percent of the residential units served by the water system is continuously occupied by local residents and at least 80 percent of the water produced is for residential use.
(B) [Repealed.]
(C) If the Secretary determines that a privately owned nonprofit community type system qualifies for a loan under this subdivision, the Secretary shall certify the loan term and interest rate to VEDA. In no instance shall the annual interest rate, plus an administrative fee, be less than is necessary to achieve an annual household user cost equal to one percent of the median household income of the applicant water system computed in the same manner as prescribed in subdivision 4763c(b)(2) of this title.
(b) Loans made to applicants by VEDA on behalf of the State under this subchapter shall be made in accordance with the terms and conditions specified in a loan agreement to be executed by VEDA and the applicant. The loan agreement shall specify the terms and conditions of the loan and repayment by the applicant, as well as other terms and conditions determined necessary by VEDA and the Secretary.
(c) Disbursement of loan proceeds shall be based on certification by the loan recipient demonstrating that costs for which reimbursement is requested have been incurred and paid by the recipient. The recipient shall provide supporting evidence of payment upon the request of VEDA. Partial disbursements of loan proceeds shall be made not more frequently than monthly. Interim financing charges or short-term interest costs may constitute an allowable cost of a project for which a loan is extended, provided VEDA approved in advance the terms, conditions, interest rate, and other related matters concerning such financing or interest cost. In the event short-term financing is unavailable to the applicant, VEDA may make interim loan disbursements not more frequently than monthly to the applicant and its general contractor as co-payees upon submission of a certified request for payment supported by actual invoices or other evidence satisfactory to VEDA of costs incurred.
(d) VEDA reserves the right to require confirmation from an independent registered professional engineer that work has been performed according to project plans and specifications approved by the Secretary prior to making any disbursement of the loan proceeds.
(e) VEDA may include such additional requirements in the loan agreement as it determines necessary for the proper administration of the Fund, and which are consistent with applicable State and federal law and with other programs administered by VEDA under 10 V.S.A. chapter 12.
(f) VEDA may require as part of the loan agreement that the applicant cause an audit of the project costs to be prepared and approved by VEDA prior to making final payment of the loan amount.
(g) In the event of default, any amounts owed upon the loan shall be considered a debt for the purposes of 32 V.S.A. § 5932(4). VEDA may recover such debt pursuant to the set off debt collection remedy established under 32 V.S.A. §§ 5933 and 5934.
(Added 1997, No. 62, § 75, eff. June 26, 1997; 2001, No. 61, § 41, eff. June 16, 2001; amended 2003, No. 63, § 60, eff. June 11, 2003; 2003, No. 121 (Adj. Sess.), § 65, eff. June 8, 2004; 2005, No. 92 (Adj. Sess.), § 1, eff. March 2, 2006; 2017, No. 185 (Adj. Sess.), § 19, eff. May 28, 2018; 2019, No. 141 (Adj. Sess.), § 5, eff. July 13, 2020.)
§ 4772 Qualifications for eligibility; certification
No loan to an applicant shall be made under this subchapter until:
(1) The applicant has certified to VEDA that:
(A) all State and federal permits and licenses, including land use, subdivision, water supply and wastewater permits, and water supply construction and operating permits, necessary to undertake the project for which financing has been sought will be obtained prior to expending construction funds under the loan;
(B) the applicant has established a rate charge or assessment schedule that will generate sufficient revenue to pay the principal and interest on the loan and to pay reasonably anticipated costs of operating and maintaining the financed project and the system of which it is a part. VEDA may require that the rate charge or assessment schedule be approved by VEDA prior to approving a loan. Nothing in this subchapter shall affect the obligation of an applicant who is subject to the jurisdiction of the Public Utility Commission under 30 V.S.A. §§ 102 and 203(3) to obtain prior approval of a rate change from such Commission pursuant to 30 V.S.A. § 225;
(C) if the applicant is subject to the jurisdiction of the Public Utility Commission under 30 V.S.A. §§ 102 and 203(3), it has obtained the following approvals and has provided VEDA with copies of those approvals:
(i) the certificate of public good issued by the Public Utility Commission pursuant to 30 V.S.A. §§ 231 (public good) and 108 approving the loan; and
(ii) the decision and order of the Public Utility Commission approving rates that are to be charged by the applicant.
(2) The Secretary has certified to VEDA that:
(A) the applicant and the project qualify for financing or assistance under section 4773 of this title and that the project has priority for receipt of financial assistance; and
(B) the applicant has or as a result of the proposed project will have the technical, managerial, and financial capability to ensure compliance with the requirements of the federal Safe Drinking Water Act as amended.
(Added 1997, No. 62, § 75, eff. June 26, 1997; amended 1997, No. 134 (Adj. Sess.), § 5.)
§ 4773 Loan priorities
The Secretary shall at least annually prepare a list of projects, ranked in priority order, that are eligible for financial assistance under this subchapter. In establishing such priorities, the Secretary shall at a minimum consider the following:
(1) the quality and quantity of water supplied by the existing system;
(2) any declared health hazard to be abated by the proposed project;
(3) the population to be served;
(4) the readiness of the project to proceed to the next planning or construction step; and
(5) the consolidation of smaller water systems into new larger water systems.
(Added 1997, No. 62, § 75, eff. June 26, 1997.)
§ 4774 Contractual authority; reports
(a) The Secretary and VEDA may enter into agreements on behalf of the State with agencies of the United States as may be necessary to obtain grants and awards in furtherance of the stated purposes of the loan fund created under section 4753 of this title, provided that notification of each such agreement shall be made to the Chairs of the House and Senate Committees on Appropriations while the General Assembly is in session, and at other times to the Chair of the Joint Fiscal Committee, and that any such grant or award has been approved pursuant to 32 V.S.A. § 5.
(b) [Repealed.]
(Added 1997, No. 62, § 75, eff. June 26, 1997; amended 2013, No. 142 (Adj. Sess.), § 95.)
§ 4775 Liability against default
Under no circumstance shall the State or VEDA become responsible for owning or operating a privately-owned community water system when the loan recipient defaults on a loan obligation or abandons the water supply or water system.
(Added 1997, No. 62, § 75, eff. June 26, 1997.)
§ 4776 Action for receivership
Upon default of a loan, VEDA shall have the right to petition the Superior Court in the county in which any part of the water system is located, or the Public Utility Commission for systems subject to the jurisdiction of the Commission, to appoint a receiver.
(Added 1997, No. 62, § 75, eff. June 26, 1997.)
§ 4777 Loan consolidation
Loans, or the outstanding balance of loans, made for the purpose of preparing engineering plans for a project may be consolidated with any subsequent loans for construction.
(Added 1997, No. 62, § 75, eff. June 26, 1997.)
§ 4778 Federal capitalization grant distribution
The Secretary may use any available and lawful funds to match federal funds otherwise available to capitalize the Fund created by subdivision 4753(a)(3) of this title. Up to 20 percent of the funds which have been identified in the annual State Intended Use Plan (IUP) and allocated for water supply projects may be used for loans to privately-owned public water systems. Any balance, excepting set-asides authorized by federal law, shall be directed to be used for loans to improve municipal water systems. Should there occur any surplus of funds for municipal water system projects in any given year, those funds may be used to fund additional privately owned public water systems.
(Added 1997, No. 62, § 75, eff. June 26, 1997; amended 1997, No. 134 (Adj. Sess.), § 6; 1999, No. 109 (Adj. Sess.), § 3.)
Subchapter 4 Private Loans for Clean Water Projects
§ 4781 Eligibility and loan application
(a) The Vermont Economic Development Authority (VEDA) is authorized to make loans on behalf of the State to private entities for a clean water project; provided, however, that no State funds are used. Such loans shall be issued and administered by VEDA pursuant to this subchapter.
(b) A private entity may apply to VEDA for a loan from the Vermont Environmental Protection Agency Pollution Control Revolving Fund, established in section 4753 of this title, for a clean water project. The loan proceeds shall be used to acquire, design, plan, construct, enlarge, repair, improve, or implement a clean water project. Loan proceeds shall not be used for operation and maintenance expenses or laboratory fees for monitoring.
(c) The Secretary and VEDA may prescribe any form of application or procedure for a loan hereunder, request from an applicant any information deemed necessary to implement this subchapter, and impose an application fee and an administrative fee determined reasonable and necessary to cover administrative costs. Fee proceeds shall be deposited in the administrative fee account established in subsection 4755(a) of this chapter.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4782 Conditions of loan agreement
(a) VEDA may make loans to applicants on behalf of the State for one or more of the purposes set forth in subsection 4781(b) of this title. Each loan shall be made subject to the following conditions:
(1) The loan shall be evidenced by a note payable over a term not to exceed 30 years. Repayment shall commence not later than one year after completion of the project for which loan funds have been issued.
(2) The loan shall be secured with assets as determined by VEDA. VEDA may also require that the applicant assign all or a portion of any revenues from the clean water project as security for the loan or may require the establishment of a reserve fund.
(3) The rate of interest charged for loans shall be set by the State Treasurer, taking into consideration prevailing borrowing rates available to similarly situated applicants from private lenders and the administrative fees to be charged to applicants. VEDA, in cooperation with the Secretary, shall periodically recommend interest rates to be set by the State Treasurer that are the lowest practicable rates consistent with maintaining the long-term integrity of the Fund. The interest rate set by the State Treasurer may be less than the prevailing borrowing rates available to similarly situated applicants from private lenders, but not less than zero percent.
(b) The loan agreement shall specify the terms and conditions of the loan and its repayment by the applicant, as well as other terms and conditions determined necessary by the Secretary and VEDA.
(c) Disbursement of loan proceeds shall be based on certification to the Secretary and VEDA by the loan recipient demonstrating that the costs for which reimbursement is requested have been incurred and paid by the recipient. The recipient shall provide supporting evidence of payment upon the request of VEDA. Partial disbursements of loan proceeds shall be made not more frequently than monthly.
(d) Interim financing charges or short-term interest costs may constitute an allowable cost of a project for which a loan is extended, provided VEDA approved in advance the terms, conditions, interest rate, and other related matters concerning the financing or interest cost. In the event short-term financing is unavailable to the applicant, VEDA may make interim loan disbursements not more frequently than monthly to the applicant and its general contractor as co-payees upon submission of a certified request for payment supported by actual invoices or other evidence satisfactory to VEDA of costs incurred.
(e) VEDA shall have the right prior to making any disbursement of the loan proceeds to require confirmation from an independent registered professional engineer that any work has been performed according to project plans and specifications approved by the Secretary.
(f) VEDA may require as part of the loan agreement that the applicant cause an audit of the project costs to be prepared and approved by VEDA prior to VEDA’s making final payment of the loan amount.
(g) In the event of default, any amounts owed upon the loan shall be considered a debt for the purposes of 32 V.S.A. § 5932(4). VEDA may recover such debt pursuant to the setoff debt collection remedy established under 32 V.S.A. §§ 5933 and 5934.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4783 Qualifications for eligibility; certification
No loan to an applicant shall be made under this subchapter until:
(1) The applicant has certified all of the following to VEDA:
(A) all State and federal permits and licenses necessary to undertake the project for which financing has been sought will be obtained prior to the expenditure of construction funds under the loan;
(B) the applicant has sufficient means to pay the principal and interest on the loans and to pay any anticipated costs of operating and maintaining the financed project;
(C) if the applicant is subject to the jurisdiction of the Public Utility Commission under 30 V.S.A §§ 102 and 203(6), the applicant has obtained the following approvals, if such approvals are necessary for the project, and has provided VEDA with copies of those approvals:
(i) the certificate of public good issued by the Public Utility Commission pursuant to 30 V.S.A. §§ 231 (public good) and 108 (approving the loan); and
(ii) the decision and order of the Public Utility Commission approving rates that are to be charged by the applicant.
(D) the municipality or municipalities in which the clean water project is located have provided a letter of support for the project.
(2) The Secretary has certified to VEDA that the applicant and the project qualify for financing or assistance under section 4784 of this title and that the project has priority for receipt of financial assistance.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4784 Loan priorities
(a) The Secretary shall at least annually prepare and certify to VEDA a list of privately owned clean water projects, ranked in priority order, that are eligible for financial assistance under this subchapter.
(b) In determining financing ability for clean water projects under this subchapter, the Secretary shall apply the criteria adopted pursuant to 10 V.S.A. § 1628; provided, however:
(1) No privately owned clean water project authorized under this subchapter shall be prioritized above a municipal clean water project.
(2) No more than 20 percent of the funds identified in the annual State Intended Use Plan (IUP) and allocated for clean water projects may be used for loans to privately owned clean water projects, unless there occurs a surplus of funds, in which case those funds may be used to fund additional privately owned clean water projects.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4785 Liability against default
Under no circumstance shall the State become responsible for owning or operating a clean water project when the loan recipient defaults on a loan obligation or abandons the project.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4786 Action for receivership
Upon default of a loan, VEDA shall have the right to petition the Superior Court in the county in which the clean water project is located, or the Public Utility Commission for projects subject to the jurisdiction of the Commission, to appoint a receiver.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
§ 4787 Loan consolidation
Loans, or the outstanding balance of loans, made for the purpose of preparing engineering plans for a project may be consolidated with any subsequent loans for construction.
(Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)
Chapter 121 Intermunicipal Cooperation and Services
Subchapter 1 General Provisions
§ 4801 Definitions
As used in this chapter:
(1) “Municipality” shall mean “municipality” as defined in 1 V.S.A. § 126.
(2) “Legislative branch” shall mean “legislative branch” as defined in subdivision 1751(2) of this title.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4802 Approval of plan
(a) Every agreement for a union municipal district under this chapter shall be submitted to the Attorney General before being presented to the voters for acceptance or rejection. The Attorney General shall determine whether the agreement is in proper form and compatible with the laws of this State. In the event that the Attorney General fails to notify the joint survey committee provided for in subchapter 2 of this chapter of his or her determination within 30 days after receipt of a copy of the agreement, it shall be deemed to have been approved.
(b) In the event that an agreement for a union municipal district deals in whole or in part with services or facilities over which an officer or agency of the State government has constitutional or statutory powers of control, the agreement shall be submitted to him or her or it, at the time of its submission to the Attorney General. The officer or agency involved may file objections with the Attorney General.
(c) No agreement shall be submitted to the voters unless it has been approved by the Attorney General under subsection (a) of this section.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 2003, No. 122 (Adj. Sess.), § 85f.)
§ 4803 Powers as supplementary
The powers granted to municipalities by this chapter are supplementary to any other powers heretofore or hereafter granted by any other statute for the same or similar purposes.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
Subchapter 2 Joint Survey Committees
§ 4831 Creation of committee
The legislative branch of any two or more municipalities may by agreement create a joint municipal survey committee to plan for the strengthening of local governments and to promote plans for more efficient and economical operation of local government services within or by the participating municipalities. For purposes of establishing a mosquito control district under 6 V.S.A. chapter 85, a municipality may create a municipal survey committee under this section with all the powers and duties that a joint municipal survey committee possesses under this chapter.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 2007, No. 34, § 2, eff. May 18, 2007.)
§ 4832 Powers and duties
The committee shall have the following powers for any of the purposes authorized by charter or general statute:
(1) To make surveys and studies and conduct research programs to enable municipalities to make the most efficient use of their powers by cooperation with other municipalities on a basis of mutual advantage, and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of municipalities.
(2) To provide for the distribution of information resulting from such surveys, studies, and programs.
(3) To consult and cooperate with appropriate State, municipal, and public or private agencies in matters affecting municipal government.
(4) To employ persons and adopt rules, regulations, and by-laws as are necessary and proper to effectuate the purposes of this chapter.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4833 Officers
The members of a joint municipal survey committee shall consist of an equal number of representatives from each municipality designated by the legislative branch. Members of the legislative branch of a municipality may serve as members of the committee. The committee shall elect from its own number a chair and secretary and other necessary officers to serve for such period as the members shall decide.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 2003, No. 122 (Adj. Sess.), § 85g.)
Subchapter 3 Union Municipal Districts
§ 4861 Authorization
If a joint municipal survey committee approves the creation of a union municipal district, it shall prepare an agreement for the formation of the district and shall file a copy with the legislative body, planning commission, and clerk of each participating municipality.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 1.)
§ 4862 Contents of agreement
Any agreement for the creation of a union municipal district shall specify the following:
(1) Its duration, if it is to be limited in time.
(2) The precise organization, composition, and nature of any separate legal or administrative entity created thereby, with the powers delegated thereto.
(3) Its purposes.
(4) The manner of election or designation of officers of the district, and the powers and duties thereof.
(5) The means of establishing a budget and financing the union municipal district, and the method, if so provided, for assessing the member municipalities or the taxpayers thereof for the expenses of the district.
(6) The permissible method or methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property thereon.
(7) The manner in which the agreement may be amended or renewed, where applicable.
(8) The conditions and procedure under which a municipality may withdraw from a union municipal district or join a district already in operation.
(9) Any other necessary and proper matters.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 2.)
§ 4863 Approval of agreement
(a) Any participating municipality may enter into the agreement for the formation of the union municipal district at any annual or special meeting of such municipality duly warned for such purpose.
(b) The vote on the question of accepting the agreement shall be by printed ballot substantially as follows:
Shall the (name of municipality) enter into an agreement for the formation of a union municipal district to be known as “ ”.
(c) All elections in the separate municipalities shall be held on the same day. The vote shall be by Australian ballot as provided for in 17 V.S.A. chapter 55, subchapter 3.
(d) Where three or more municipalities are concerned in the voting, and at least two approve the agreement, rejection of the agreement by one or more shall not defeat the creation of a district composed of the municipalities voting affirmatively on the question, if the joint survey committee decides that it is feasible or practical to continue the district as a geographic unit, unless the agreement as proposed expressly provides that specific participating municipalities or a minimum number of participating municipalities shall approve the agreement. Members from municipalities rejecting the agreement may take no part in the decision of the joint survey committee, or in any subsequent matters relating to the agreement rejected by the municipalities they represent.
(e) The governing body of the district may authorize the inclusion of additional municipalities outside of the district. Any authorized municipality may take action to enter into the district according to the approval procedures contained herein.
(f) A municipality which is a member of a union municipal district may vote to withdraw from the union municipal district if one year has elapsed since said union municipal district has become a body politic and corporate as provided in section 4865 of this title and if the union municipal district has not voted to bond for construction and improvements as provided in section 4866 of this title.
(g) When a majority of the voters of a member municipality present and voting at a meeting of such municipality duly warned for that purpose shall vote to withdraw from a union municipal district, the vote shall be certified by the clerk of that municipality to the governing body of the union municipal district. Thereafter, the governing body of the union municipal district shall give notice to the remaining member municipalities of the vote to withdraw and such body shall hold a meeting to determine whether it is in the best interests of the district to continue to exist. Representatives of the member municipalities shall be given an opportunity to be heard at such meeting together with any other interested persons. After such meeting, the governing body may declare the district dissolved immediately or as soon thereafter as each member municipality’s financial obligations have been satisfied, or it may declare that the district shall continue to exist despite the withdrawal of the member municipality.
(h) A vote of withdrawal taken after a union municipal district has become a body politic and corporate but less than one year after that date shall be null and void. A vote of withdrawal taken after the union municipal district has voted to bond itself for construction and improvements shall likewise be null and void.
(i) The membership of the withdrawing municipality shall terminate as of one year following the vote to withdraw or as soon after such one year period as the financial obligations of said withdrawing municipality have been paid to the union municipal district.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 3; 2001, No. 6, § 12(c), eff. April 10, 2001; 2003, No. 122 (Adj. Sess.), § 85h.)
§ 4864 Employee organizations; police employees; State Labor Relations Board
If an employee organization is the exclusive bargaining representative of employees in one or more participating municipalities in a proposed agreement to create a union municipal district for the purpose of providing services currently provided by these employees, any questions of unit determination or representation involving these employees shall be resolved by the State Labor Relations Board pursuant to 21 V.S.A. chapter 22.
(Added 2003, No. 122 (Adj. Sess.), § 85i.)
§ 4865 Organization
Upon the approval of the agreement by the required number of municipalities as provided in section 4863 of this title, the union municipal district shall become a body politic and corporate with the powers incident to a public corporation. The district shall be known by the name given in the agreement, by that name may sue and be sued, and may hold and convey real and personal estate for the use of the district.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 4.)
§ 4866 Powers and duties
A union municipal district may:
(1) Hire and fix the compensation of employees.
(2) Contract with consultants and other experts for services.
(3) Contract with the State of Vermont or the federal government, or any agency or department thereof, for services.
(4) Contract with any participating municipality for the services of any officers or employees of that municipality useful to it.
(5) Contract with a county sheriff to provide law enforcement services to the union district.
(6) Promote cooperative arrangements and coordinated action among its participating municipalities.
(7) Make recommendations for review and action to its participating municipalities and other public agencies which perform functions within the region in which its participating municipalities are located.
(8) Exercise any other powers which are exercised or are capable of exercise by any of its participating municipalities, and necessary or desirable for dealing with problems of mutual concern.
(9) Borrow money and issue evidence of indebtedness as provided by chapter 53 of this title. Obligations incurred under such chapter shall be the joint and several obligations of the district and of each member municipality but shall not affect any limitation on indebtedness of a member municipality. The cost of debt service shall be included in the annual budget of the district, and shall be allocated among the member municipalities as provided in the agreement for the allocation of the assessment for the ordinary expenses of the district. Where voter approval is required pursuant to chapter 53 of this title, the governing body of the district shall determine the number and location of polling places, and when a majority of all the voters present and voting on the question from all of the member municipalities at such meeting vote to authorize the issuance of bonds, the district shall be authorized to issue the bonds as provided in said chapter. The counting of ballots shall be conducted by the governing board of the district together with the town or city clerk from each member municipality or his or her designee.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 6; 2003, No. 122 (Adj. Sess.), § 85j.)
§ 4867 Cooperation with other agencies
Whenever a union municipal district intends to operate in a geographical area which may involve other governmental agencies acting in a regional capacity, it shall notify that governmental agency of its plans and intentions.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4868 Reports
Each union municipal district shall prepare an annual report of its activities, including a financial statement, to be distributed to its member municipal units, and shall prepare and distribute any other reports required by its by-laws.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
Subchapter 4 Interlocal Contracts
§ 4901 Authorization
(a) Any one or more municipalities may contract with any one or more other municipalities to perform any governmental service, activity, or undertaking which each municipality entering into the contract is authorized by law to perform, provided that the legislative body of each municipality approves the contract, and expenses for such governmental service, activity, or undertaking are included in a municipal budget approved under 17 V.S.A. § 2664 or comparable charter provision.
(b) If the interlocal contract is such that the participating municipalities or their legislative bodies, commissions, boards, officers, or voters have the authority to enter into it, by virtue of any charter provision, statute, or the general authority of such municipality or its officers and bodies, then the procedures of this section for approval shall not be exclusive, it being the intent that the powers and procedures set forth in this subchapter for interlocal contracts are supplementary to any other powers or procedures heretofore or hereafter possessed by any municipality.
(c) A municipality may submit an interlocal contract to the Attorney General prior to approval by its legislative body. If such a contract is submitted, the Attorney General shall determine whether the contract is in proper form and compatible with the laws of this State and notify the legislative body of the municipality of his or her determination. In the event that the Attorney General does not respond to the request within 30 days after receipt of a copy of the contract, the legislative body may approve the contract.
(Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 5; 2003, No. 122 (Adj. Sess.), § 85k.)
§ 4902 Contents of contract
(a) The contract shall set forth fully the purposes, powers, rights, and objectives, and responsibilities of the contracting parties.
(b) The contract may provide:
(1) That one person shall hold the same office or offices in the participating municipalities, notwithstanding any provision of law to the contrary.
(2) The method of choosing officers by election or appointment, the term of office, the compensation of, or mode of setting the compensation of, and the authority to discharge, a person holding office under subdivision (1) of this subsection.
(3) For any duly constituted local or regional board to have jurisdiction in all the municipalities.
(4) For a transfer of a local service function or activity or a portion thereof, previously authorized or exercised by a municipality, to another municipality.
(5) For the acquisition and maintenance of property, forces, and services which the municipalities participating in the contract are authorized by law to acquire and maintain.
(6) For the use of any property, equipment, or personnel of a municipality that is a party to the contract in connection with a joint service or activity authorized by the terms of the contract.
(7) For the deposit of funds appropriated, received, or contributed for purposes of any joint municipal activity or service in one or more special bank accounts, and for designation of persons authorized to have custody of and to draw on such funds.
(8) For the exercise of any powers consistent with law in order to carry out the purposes contemplated in the contract.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
Subchapter 5 Outside Aid
§ 4931 Source of funds
Any union municipal district may accept, receive, and disburse in furtherance of the duties and functions, any funds, grants, and services made available by the State of Vermont and its agencies, the federal government and its agencies, any municipality or other governmental unit whether or not a member of the district, or private or civic sources.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4932 Technical assistance
The State and all departments, boards, bureaus, commissions, and other agencies thereof are hereby authorized and empowered, within the limitations of the constitution, to furnish and make available services, assistance, funds, property, and other incentives to any two or more municipalities participating in a union municipal district or interlocal contract so as to effectuate economy or simplification in the administration or financing thereof.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4933 Municipal contributions
Each municipality that is a party to an interlocal contract shall have authority to appropriate funds for the purpose of the contract and may also levy taxes and issue bonds for the payment of the appropriation as a special purpose. Services of personnel, use of equipment and office space, and other services may be accepted from contracting municipalities either in addition to or as part of their financial support.
(Added 1969, No. 197 (Adj. Sess.), § 1.)
§ 4934 Repealed
[Repealed]
1973, No. 250 (Adj. Sess.), § 7, eff. July 1, 1974.
Subchapter 6 Intermunicipal Insurance Agreements
§ 4941 Definitions
As used in this subchapter:
(1) “Association” shall mean an association, compact, or corporation, any of which shall be organized not for profit, and formed for the purpose of entering into intermunicipal insurance agreements under this subchapter.
(2) “Municipality” shall mean “municipality” as defined in section 4801 of this title, but shall also include the following:
(A) all governmental entities defined in 1 V.S.A. § 126 and in subdivision 1751(1) of this title;
(B) all bodies corporate and politic created and existing under any special act of the General Assembly;
(C) all bodies corporate and politic created and existing under an interstate compact;
(D) all bodies corporate and politic created under intermunicipal agreements entered into and approved as provided in subchapter 3 of chapter 121 of this title;
(E) all supervisory unions created under 16 V.S.A. chapter 7, subchapter 1;
(F) all incorporated school districts;
(G) all entities providing educational services and eligible for State aid under 16 V.S.A. § 3447;
(H) all consolidated water and sewer districts;
(I) all ambulance districts created under subchapter 1 of chapter 71 of this title;
(J) all regional mass transportation authorities created under chapter 127 of this title;
(K) all local housing authorities created under section 4003 of this title;
(L) all conservation commissions created under section 4501 of this title;
(M) all special assessment or tax increment financing districts created under subchapter 5 of chapter 53 of this title;
(N) all counties established by chapter 1 of this title;
(O) all regional planning commissions established under chapter 117 of this title;
(P) all instrumentalities and agencies of the foregoing.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)
§ 4942 Contents of agreement
Two or more municipalities, by resolution of their respective legislative bodies or boards, may establish and enter into agreements for obtaining or effecting insurance by self-insurance, for obtaining or effecting insurance from any insurer authorized to transact business in this State as an admitted or surplus lines carrier, or for obtaining and effecting insurance secured in accordance with any other method provided by law, or by combination of the provisions of this section for obtaining and effecting insurance. Agreements made pursuant to this section may provide for pooling of self-insurance reserves, risks, claims and losses, and of administrative services and expenses associated with the same, among municipalities. To accomplish the purposes of this subchapter, two or more municipalities may form an association under the laws of this State to develop and administer an intermunicipal risk management program, having as its purposes reducing the risk of its members; safety engineering; distributing, sharing, and pooling risks; acquiring insurance, excess loss insurance, or reinsurance; and processing, paying, and defending claims against the members of such association.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)
§ 4943 Contributions
Any contributions made to such association for the purpose of distributing, sharing, or pooling risks shall be made on an actuarially sound basis, and any such association shall have its books, records, and financial affairs audited annually by a certified public accountant, copies of which shall be provided to each municipal member and the Commissioner of Financial Regulation.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 4944 Approval of agreements
(a) No association organized under this subchapter shall receive funds from any municipality for the purpose of distributing, sharing, or pooling any risk until a plan for the operation of the association together with all contracts, agreements, and any other documents underlying or implementing the plan, and all amendments thereto, have been approved by the Commissioner of Financial Regulation.
(b) The Commissioner shall adopt rules to assist in the formation of such associations and to expedite approval of any plan of operation. The Commissioner shall also adopt rules relating to the administration and operation of such associations in order to provide for the fiscal integrity of agreements entered into under section 4942 of this title and to provide that trade, market, and claim practices engaged in by such associations are equitable, fair, and consistent. In adopting such rules, the Commissioner shall recognize that such associations are undertaking an essential governmental function and that they shall not be considered insurance companies nor insurers under the laws of this State.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 4945 Inapplicability of other laws
The provisions of section 4863 of this title shall not apply to the formation of an association organized under this subchapter, nor to the participation therein by a municipality.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)
§ 4946 Declaration of policy
The General Assembly hereby finds and declares that the implementation of this subchapter by any municipality and the activity of any association organized pursuant to this subchapter shall constitute essential governmental functions. Participation by a municipality in an agreement or association established pursuant to this subchapter shall not create joint and several liability as a result of any act or omission of any other municipality or association, nor shall such participation constitute a waiver of sovereign immunity under 29 V.S.A. § 1403.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)
§ 4947 Health benefit plans offered to entities providing educational services
(a) As used in this section:
(1) “Health benefit association” means an association that offers one or more health benefit plans to school employers for coverage of their school employees.
(2) “School employee” shall have the same meaning as in 16 V.S.A. § 2101.
(3) “School employer” shall have the same meaning as in 16 V.S.A. § 2101.
(b) A health benefit association shall offer the same plan or plans to all school employers.
(c) A health benefit association shall solicit the input of the Commission on Public School Employee Health Benefits established in 16 V.S.A. § 2102 regarding the design of the health benefit plan or plans to be offered to school employers for coverage of their school employees.
(d) The governing board of a health benefit association shall be composed of the following six members:
(1) three members appointed by the organization representing the majority of the public school boards in this State, who shall not be employees of the organization; and
(2) three members appointed by the labor organization representing the greatest number of public school employees in the State, who shall not be employees of the organization.
(e) A health benefit association shall make all health benefit plans that it offers available to approved or recognized independent schools operating in Vermont. Participation shall not create joint and several liability as a result of any act or omission of any other school, municipality, or association. Schools that participate under this section shall be provided with copies of the annual audit. The provisions of 16 V.S.A. § 166 shall apply for purposes of determining whether a school qualifies as an “approved or recognized independent school.”
(Added 1997, No. 138 (Adj. Sess.), § 20a, eff. April 27, 1998; amended 2018, No. 11 (Sp. Sess.), § H.25.)
Chapter 122 Intermunicipal Contracts; Development
§ 4951 Contract for joint municipal development
(a) Any two or more municipalities, as provided in this chapter, may enter into contracts with each other, provided a vote of a majority of those voting at an annual or special meeting warned for that purpose grants authority to the respective legislative branches of each municipality to enter into such contracts, for the purpose of developing real property for industrial, commercial, or residential purposes. These contracts may provide that the respective municipalities be authorized to do the following:
(1) Apportion such sums of money as shall be paid as an annual tax upon such property among said municipalities;
(2) Make application for, receive, or expend State, federal, and private development grants;
(3) Enter into contracts with consultants, engineers, architects, and other experts for services;
(4) Enter into contracts pursuant to section 2741 of this title relating to taxation of real and personal property;
(5) Acquire, manage, lease, mortgage, or sell interests in real property;
(6) Borrow money and issue evidence of indebtedness as provided in chapter 53 of this title;
(7) Adopt bylaws to govern its procedures;
(8) Any other matters necessary and proper in attaining the purposes of this section.
(b) If the contract entered into under this section includes the authority to borrow money or issue evidence of indebtedness, the contract shall also specify how the obligations to be incurred will be apportioned and may provide that any obligation incurred by a member municipality shall not affect the limitation of indebtedness of that municipality.
(c) Any contract entered into under this section shall:
(1) be filed with the clerk of the respective municipalities and made available for public inspection;
(2) continue in full force and effect for the term specified therein or until modified by mutual agreement of the legislative branches of each municipality.
(Added 1983, No. 21.)
Chapter 123 Municipal Housing Codes
§ 5001 Legislative findings
The General Assembly finds:
(1) There exist in the various municipalities numerous dwellings and dwelling premises that are substandard due to dilapidation, deterioration and disrepair, structural defects, uncleanliness, lack of adequate ventilation, light, sanitary, heating and hot water facilities, overcrowding of dwellings, occupancy of unfit dwellings, and other conditions and defects which increase the hazards of illness, disease, fire, accidents, and other calamities;
(2) These conditions, singly or in combination, endanger the health, safety, morals, and general welfare of the people of the various municipalities and give impetus to the development, continuation, extension, and aggravation of blighted and substandard housing conditions;
(3) The establishment and maintenance of minimum standards for dwellings is necessary to the protection of the public health, safety, morals, and general welfare.
(Added 1969, No. 270 (Adj. Sess.).)
§ 5002 Definitions
As used in this chapter:
(1) “Board” means the board established or designated as the housing board of review.
(2) “Dwelling” means any building or structure or part thereof, including hotels and rooming houses, that is used, occupied, or intended to be used or occupied for human habitation, and includes dwelling premises, appurtenances, and facilities belonging to the dwelling or usually enjoyed therewith.
(3) “Dwelling premises” means the land and auxiliary buildings thereon used or intended to be used in connection with the dwelling.
(4) “Enforcing officer” means the head, or his or her duly authorized representative, of the division, bureau, office, department, or agency responsible for enforcing and administering any ordinance or regulation adopted under this chapter.
(5) “Municipality” means a city, town, or incorporated village.
(Added 1969, No. 270 (Adj. Sess.).)
§ 5003 Powers of municipalities
(a) For the purposes of promoting the public health, safety, morals, or general welfare, and for the purpose of making dwellings and dwelling premises safe, sanitary, and fit for human habitation, a municipality may adopt, amend, and revise an ordinance for the establishment and enforcement of minimum standards for dwellings. Any such ordinance shall be adopted, amended, or revised in the manner prescribed in sections 1972 and 1973 of this title. Any nationally recognized code, rule, or regulation or portions thereof regarding minimum standards for dwellings and dwelling premises that has been printed in book or pamphlet form may be adopted by reference.
(b) Any ordinance adopted pursuant to this chapter shall include:
(1) provision that any order provided for in this chapter shall be recorded in the office in which a deed of the property would be recorded as provided by law, and the order shall thereby be effective against any purchaser, mortgagee, attaching creditor, lien holder, or other person whose claim or interest in the property arises subsequent to the recording of the order;
(2) a relocation program for those persons displaced by any action taken pursuant to subsection (c) of this section;
(3) provision that when the enforcing officer finds that any order issued under this section has been complied with, he or she shall issue forthwith a cancellation of the order.
(c) Any ordinance adopted pursuant to this chapter may include:
(1) Minimum standards with respect to facilities and equipment in dwellings including provisions relating to kitchen sinks, flush toilets and lavatory basins, bathtubs and showers, hot and cold water lines, rubbish and garbage storage and disposal facilities, cooking facilities, water heating facilities, window screens, and provisions for elimination and prevention of insect and vermin infestation.
(2) Minimum standards with respect to lighting, ventilation, refrigeration, and heating including, but not limited to, provisions relating to window area, room light and ventilation, electrical outlets, heating facilities, lighting of halls and stairways, and refrigerated storage space.
(3) Minimum standards relating to the healthful, safe, and sanitary maintenance of parts of dwellings and dwelling units including provisions relating to weather-tight and rodent-proof foundations, floors, walls, ceilings, roofs, windows, and doors, condition of chimneys and flues, condition and repair of stairs and porches, condition of plumbing fixtures, imperviousness of floor surfaces to water and functioning of facilities, pieces of equipment, and utilities.
(4) Minimum standards with respect to space, use, and location including provisions relating to floor space per occupant, size of rooms, bathroom glasses, ceiling height, cellar and basement occupancy, and means of egress.
(5) Minimum standards with respect to the provision of features for the safety of occupants including the installation and maintenance of flameproof and fireproof materials and the installation and maintenance of equipment to combat and prevent fires.
(6) Provisions fixing rights and responsibilities of owners, lessees, mortgagees, operators, and occupants for the condition, maintenance, use, and occupancy of dwellings and dwelling premises, including security deposits. An ordinance relating to security deposits may not limit how a security deposit is held.
(7) Provisions that the enforcing officer may enter, examine and survey all dwellings and dwelling premises at any reasonable time between the hours of 8:00 a.m. and 5:00 p.m. and that the inspection shall be made so as to cause the least amount of inconvenience to the owner or occupant, consistent with the efficient performance of the duties of the enforcing officer, except that the enforcing officer may be authorized to enter, examine, and survey all dwellings and dwelling premises at any time when an emergency tending to create an immediate danger to public health or safety exists.
(8) Provision that if entry for inspection is resisted or refused, a search warrant for entry may be issued by a Superior judge upon presentation of affidavits establishing probable cause. Standards for determining probable cause may be the passage of time between inspections, the nature of the dwelling, the condition of the area, or the need to determine if there has been compliance with a repair order previously issued but need not necessarily depend upon specific knowledge of the condition of the particular dwelling.
(9) Provisions that the enforcing officer may issue a notice of violation and order the repair, alteration, or improvement of a dwelling or dwelling premises directed to the owner or other person responsible therefor under the ordinance.
(10) Provisions that the enforcing officer may declare any dwelling or dwelling premises unfit for human habitation if he or she finds that conditions exist in the dwelling which are a serious hazard or immediate peril to the health, safety, or welfare of the occupants thereof, the occupants of neighboring dwellings, or the general public.
(11) Provisions that whenever any dwellings or dwelling premises are found by the enforcing officer to be unfit for human habitation because of defects which constitute a serious hazard or immediate peril to the health, safety, or welfare of the occupants of the dwelling or the public, the enforcing officer may:
(A) order the dwelling or dwelling premises to be vacated and secured until such time as he or she determines that the dwelling is again fit for human habitation;
(B) order the repair, alteration, or improvement of the dwelling or dwelling premises except that the owner shall have the right to vacate and secure the dwelling or dwelling premises within seven days after receipt of the order by the owner or the owner’s agent;
(C) initiate demolition proceedings pursuant to sections 3113, 3114, 3115, and 3116 of this title.
(12) Provisions that the owner of any dwelling which has been found by the enforcing officer to be unfit for human habitation in accordance with subdivision (11) of this subsection, shall not sell, transfer, mortgage, lease, or otherwise dispose thereof until the owner has furnished the intended grantee, mortgagee, or lessee a true copy of the order and has notified the enforcing officer, in writing, of his or her intent to sell, transfer, mortgage, lease, or otherwise dispose of the dwelling, or until the enforcing officer has found that the conditions causing the dwelling to be unfit for human habitation have been corrected. A transferee, mortgagee, or lessee who has received actual notice or constructive notice shall be bound by the order on the date of the transfer, mortgage, or lease without service of further notice upon him or her by the enforcing officer.
(13) Provisions that the enforcing officer may make such regulations as may be consistent with the proper enforcement of any ordinance enacted under this chapter.
(Added 1969, No. 270 (Adj. Sess.); amended 1991, No. 229 (Adj. Sess.), § 2.)
§ 5004 Establishment of enforcement agency
If a municipality adopts an ordinance pursuant to section 5003 of this title it shall provide for the creation of such agencies, departments, divisions, and offices as may be required to administer the powers and duties authorized by this chapter, and for the designation of the head of such agency, department, division, or office, or his or her delegate as an enforcing officer under this chapter.
(Added 1969, No. 270 (Adj. Sess.).)
§ 5005 Housing board of review
(a) If a municipality adopts an ordinance pursuant to section 5003 of this title, it shall provide for the selection and organization of a housing board of review consisting of five members who shall be appointed by the legislative body. The chair, or in his or her absence, the acting chair, may administer oaths and compel the attendance of witnesses. All hearings of the board shall be open to the public.
(b) A housing board of review shall be governed by the following procedure:
(1) The board shall keep minutes of its proceedings, showing the vote upon each question, and shall keep records of its decisions and findings and the reasons therefor, and of its examinations and other official actions, all of which shall be filed in the office of the town or city clerk and shall be a public record;
(2) Any person aggrieved by an order issued by the enforcing officer may appeal to the board. The appeal shall be taken within seven days from the date of the order appealed from unless a different period is specified by ordinance. The appeal shall be in writing and shall specify the grounds therefor and the relief requested. The board shall immediately send a copy of the appeal to the enforcing officer who shall forthwith send to the board all evidence constituting the record upon which the order was based;
(3) An appeal to the board shall stay the effectiveness of the order appealed from unless the enforcing officer certifies to the board after notice of the appeal has been sent to him or her, that, by reason of facts stated in the certificate, a stay would, cause a serious hazard or imminent peril to the health or safety of the occupants of a dwelling or of the public. Upon consideration of such certificate, the board may give written notice to the appealing party specifying that the order shall be effective pending a hearing on the merits of the appeal in which case the effectiveness of the order shall not be stayed otherwise than by a restraining order which may be granted by a court of competent jurisdiction or application therefor and upon notice to the enforcing officer and on due cause shown;
(4) The board shall fix a reasonable time for the hearing of the appeal, give due notice thereof to the party making the appeal and the enforcing officer and decide it within a reasonable time. At the hearing any party may appear in person or by agent or attorney;
(5) If a municipality adopts an ordinance governing security deposits and further provides that a housing board of review shall hear and decide disputes related to security deposits, a landlord or tenant may request a hearing before the board without the involvement or order of an enforcing officer. A hearing shall be set and held by the board in the same manner as provided in subdivisions (1) through (4) of this subsection.
(c) The housing board of review shall have the following powers:
(1) The housing board of review may hear and decide appeals where it is alleged that there is error in any order, requirement, decision, or determination made by an enforcing officer in the enforcement of any ordinance or regulation adopted under this chapter or where a municipality so provides, to resolve disputes related to security deposits for the occupancy of dwellings;
(2) Where, by reason of an extraordinary and exceptional condition or situation unique to the property involved, the strict application of any ordinance or regulation adopted under this chapter would result in peculiar and exceptional difficulties to, or exceptional and undue hardship upon, the person to whom an order has been issued, the housing board of review may vary from the strict application to the least extent necessary to relieve the difficulties, or hardship if the relief may be granted without substantial detriment to public health, safety, morals, and general welfare and without substantial impairment of the intent and purpose of the ordinance or regulation;
(3) In exercising its powers, the board may in conformity with this chapter reverse or affirm wholly or partly, or may modify any order, requirement, decision, or determination of the enforcing officer and may make such order, requirement, decision, or determination as ought to be made, and to that end shall have all the powers of the enforcing officer from whom the appeal was taken and where a municipality so provides, the board may order that all, part, or none of the portion of the security deposit which is withheld be retained by the owner or returned to the tenant;
(4) In order to hear an appeal, a majority of the board must be present. A concurring vote of a majority of the members of the board present at the hearing shall be necessary to reverse or modify any order or decision of the enforcing officer and to authorize a variance or modification in the application of any ordinance or regulation adopted under this chapter. When a tie vote occurs, the order of the enforcing officer shall be considered to be sustained. Except as provided in subsection 5006(b) of this title, the findings of the board shall be conclusive with respect to questions of fact and may be reviewed only as to questions of law.
(Added 1969, No. 270 (Adj. Sess.); amended 1991, No. 229 (Adj. Sess.),§§ 3, 4.)
§ 5006 Court review
(a) Any person, including the enforcing officer, aggrieved by any decision of the board, may appeal to the Superior Court. The appeal shall not stay proceedings upon the decision appealed from, but the court may on application, upon notice to the board and on due cause shown, grant a restraining order. The board shall not be required to return the original papers acted on by it, but it shall be sufficient to return certified or sworn copies thereof or such portions thereof as may be pertinent and material to show the grounds of the decision appealed from and shall be verified.
(b) If upon the hearing it appears to the court that testimony is necessary for the proper disposition of the matter, it may take evidence or appoint a referee to take such evidence as it may direct and report the same to the court with his or her findings of fact and conclusions of law, which shall constitute a part of the proceedings upon which the determination of the court shall be made. The court may reverse or affirm wholly or partly or may modify the decision appealed from.
(Added 1969, No. 270 (Adj. Sess.); amended 1971, No. 185 (Adj. Sess.), § 206, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 5007 Penalties
Municipalities may prescribe by ordinance penalties for any violation of any ordinance or regulation adopted under this chapter by a fine not to exceed $200.00 or by imprisonment for not more than 30 days, or both, for each violation thereof. Each day’s failure to comply with any such provision shall constitute a separate violation.
(Added 1969, No. 270 (Adj. Sess.).)
§ 5008 Court proceedings
If the enforcing officer finds that any person has failed to comply with any order issued by him or her within the time specified therein and that such person has failed to appeal such order within the time prescribed, he or she may notify the State’s Attorney of the county or the attorney of the municipality who shall bring suit in the name of the municipality to enforce such order. Such suit shall be brought in the Superior Court of the county in which the municipality is located and at the request of either party, the court shall advance the case so that it may be heard and determined with as little delay as possible. The court may issue a temporary injunction or order in any such proceedings and may exercise all the plenary powers available to such court to obtain compliance with the ordinance and any order issued pursuant thereto. The court may award costs of suit which may include, if the plaintiff prevails and the court deems the defense without substantial merit, the attorney’s fees incurred by the plaintiff or so much thereof as the court finds reasonable.
(Added 1969, No. 270 (Adj. Sess.), eff. July 1, 1970; amended 1971, No. 81, eff. April 16, 1971; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 5009 Construction
This chapter shall be construed most favorably to municipalities, its intention being to give them the fullest and most complete powers possible concerning the subject matter hereof.
(Added 1969, No. 270 (Adj. Sess.).)
§ 5010 Effect of previously adopted ordinances
Ordinances, rules, and regulations adopted by any municipality under chapter 83 of this title shall not be affected or in any way invalidated by the provisions of this chapter. The provisions of this chapter and ordinances and regulations adopted under its authority, shall not be subject to limitations, requirements, or provisions contained in said chapter 83.
(Added 1969, No. 270 (Adj. Sess.).)
Chapter 125 Municipal Employees' Retirement System of Vermont
§ 5051 Definitions
As used in this chapter:
(1) “Accumulated contributions” means the sum of all the amounts deducted for Municipal Employees’ Retirement System purposes from the compensation of a member with interest thereon, as provided in subsection 5063(b) of this title.
(2) “Actuarial equivalent” means a benefit of equal value under actuarial assumptions last adopted by the Retirement Board under subsection 5063a(h) of this title.
(3) “Annuity” means annual payments for life actuarially derived from the accumulated contributions of a member.
(4) “Average final compensation” (AFC) means:
(A) For a Group A member, the average annual earnable compensation of a member during the five 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 five years. If the member’s highest five years of earnable compensation are the five years prior to separation of service and the member separates prior to the end of a fiscal year, the AFC shall be determined by adding all of the following:
(i) The actual earnable compensation earned in the fiscal year of separation through the date of separation and the service credit to correspond with the last pay date.
(ii) The earnable compensation and service credit earned in the preceding four fiscal years.
(iii) The remaining service credit that is needed to complete the five full years, which shall be factored from the fiscal year preceding the four 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) For a Group B or C member, the term means the average annual earnable compensation of a member during the three consecutive fiscal years beginning on July 1 and ending on June 30 of creditable service affording the highest average, or during all of the years in his or her 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 AFC shall be determined by adding all of the following:
(i) The actual earnable compensation earned in the fiscal year of separation through the date of separation and the service credit to correspond with the last pay date.
(ii) The earnable compensation and service credit earned in the preceding two fiscal years.
(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 (B). 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.
(C) For a Group D member, the term means the average annual earnable compensation of a member during the two consecutive fiscal years beginning on July 1 and ending on June 30 of creditable service affording the highest such average, or during all of the years in his or her creditable service if fewer than two years. If the member’s highest two years of earnable compensation are the two years prior to separation of service and the member separates prior to the end of a fiscal year, the AFC shall be determined by adding all of the following:
(i) The actual earnable compensation earned in the fiscal year of separation through the date of separation and the service credit to correspond with the last pay date.
(ii) The earnable compensation and service credit earned in the preceding fiscal year.
(iii) The remaining service credit that is needed to complete the two full years, which shall be factored from the fiscal year preceding the fiscal year described in subdivision (ii) of this subdivision (C). 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.
(D) For purposes of determining average final compensation for a member who has accrued service in more than one group plan within the System, the highest consecutive years of earnings shall be based on the formulas outlined in subdivision (A), (B), or (C) of this subdivision (4) using the earnable compensation received while a member of the System.
(5) “Beneficiary” means any person in receipt of a pension, an annuity, a retirement allowance, or other benefit as provided by this chapter.
(6) “Board” means the Board of Trustees of the System provided for in section 5062 of this title to administer the System.
(7) “Continuous service” means those periods of service as an employee with all employers, provided all of the following conditions are met:
(A) The period of each employment was uninterrupted.
(B) Not more than 30 days elapsed between termination of one period of employment and commencement of the next.
(C) Each such termination occurred after the effective date of the System.
(D) Each employer employing the employee after the effective date was a participant in the System during the period it employed the employee. Notwithstanding any other provisions, continuous service prior to the effective date of this plan shall commence on the most recent date of hire as an employee, but in no case shall the continuous service of an employee prior to the effective date of this plan be for a period longer than 20 years. If an employee does not withdraw his or her contributions, continuous service shall not be interrupted by:
(i) an approved leave of absence; or
(ii) a departure from the Municipal Retirement System for a period of less than three years.
(8) “Creditable service” means that period of continuous service subsequent to an employee joining the System and prior to his or her termination of service, during which an employee makes contributions. For those employees who join when first eligible, and whose employer joins on the effective date of this System, there shall be included as creditable service that period of continuous service as an employee prior to such effective date up to a maximum of 20 years with such employer. For those employees of employers who join on the effective date of the System, and who elect to join the System subsequent to the effective date, only the three years of continuous service immediately prior to joining the System shall be included as credited service. For those employees of employers who elect to purchase prior service credit in accordance with subsection 5054(e) of this title, there shall be included as creditable service that period of continuous service as an employee prior to the effective date of participation and allowed in accordance with the prior service purchase agreement but not in excess of 20 years. Creditable service shall also include that transferred under 3 V.S.A. § 495.
(9) “Earnable compensation” means the total amounts paid to an employee for his or her position. In cases where compensation includes maintenance, the Retirement Board shall fix the value of that part of the compensation not paid in money. Fees shall be counted as compensation.
(10) “Employee” means the following persons employed on a regular basis by a school district, by a supervisory union, or by a board of cooperative education services for not fewer than 1,040 hours in a year and for not fewer than 30 hours a week for the school year, as defined in 16 V.S.A. § 1071, or for not fewer than 1,040 hours in a year and for not fewer than 24 hours a week year-round; provided, however, that if a person who was employed on a regular basis by a school district as either a special education or transportation employee and who was transferred to and is working in a supervisory union or a board of cooperative education services in the same capacity pursuant to 16 V.S.A. § 261a(a)(6) or (8)(E) and if that person is also employed on a regular basis by a school district within the supervisory union, then the person is an “employee” if these criteria are met by the combined hours worked for the supervisory union and school district. The term also means persons employed on a regular basis by a municipality other than a school district for not fewer than 1,040 hours in a year and for not fewer than 24 hours per week, including persons employed in a library at least one-half of whose operating expenses are met by municipal funding:
(A) “Group A member” means a person employed by a participating municipality who does not elect to become a Group B, C, or D member under section 5068 of this title or does not become a Group B or C member pursuant to a collective bargaining agreement.
(B) “Group B member” means a person employed by a municipality who elects to become a Group B member under section 5068 of this title or becomes a Group B member pursuant to a collective bargaining agreement.
(C) “Group C member” means a person employed by a municipality who elects to become a Group C member under section 5068 of this title or becomes a Group C member pursuant to a collective bargaining agreement.
(D) “Group D member” means a person employed by a participating municipality who elects to become a Group D member under section 5068 of this title.
(E) The Retirement Board shall determine any question as to whether a person is an employee as defined in this chapter.
(11) “Employer” means a municipality, a library at least one-half of whose operating expenses are paid from municipal funds, or a supervisory union.
(12) “Medical Board” means the board of physicians provided for in section 5062 of this title.
(13) “Member” means any employee included in the membership of the Retirement System under section 5053 of this title.
(14) “Municipality” means a city, town, county, incorporated village, fire district, consolidated water district, housing authority, union municipal district, school district, incorporated school district, union school district, or any of their instrumentalities. The Retirement Board shall determine any question as to whether an employer is eligible to participate in the System.
(15) “Normal retirement date” means:
(A) for Group A members, the first day of the calendar month next following the attainment of age 65 and the completion of five years of creditable service or age 55 and completion of 35 years of creditable service;
(B) for Group B members, the first day of the calendar month next following the attainment of age 62 and the completion of five years of creditable service or age 55 and completion of 30 years of creditable service; and
(C) for Group C and D members, the first day of the calendar month next following the attainment of age 55 and the completion of five years of creditable service.
(16) “Pension” means annual payments for life derived from contributions by the State and municipality.
(17) “Pension reserve” means the present value of all payments to be made on account of a pension, or benefit in lieu of a pension, computed at regular interest on the basis of tables last adopted by the Board.
(18) “Regular interest” means interest at such rate or rates as may be established from time to time by the Board as provided in subsection 5063(b) of this title.
(19) “Retirement” means withdrawal from active service with a retirement allowance granted under the provisions of this chapter.
(20) “Retirement allowance” or “maximum allowance” means the sum of the annuity and the pension. All retirement allowances shall be payable in equal monthly installments except that when the retirement allowance is less than $20.00 per month it shall be payable on such basis as the Board may direct.
(21) “Service” means service as an employee for which compensation is paid by an employer as defined in subdivision (11) of this section, service recognized under section 5054 of this title, or service prior to the effective date of the plan.
(22) “System” means the Municipal Employees’ Retirement System of Vermont, as defined in section 5052 of this title.
(23) “Fund” or “Vermont Municipal Retirement Fund” means the fund created by section 5064 of this title, which shall contain the assets of the Retirement System and from which shall be paid the benefits due to beneficiaries and the expenses of the Retirement System.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1977, No. 164 (Adj. Sess.), § 3, eff. March 31, 1978; 1977, No. 205 (Adj. Sess.), § 1; 1983, No. 56, § 1, eff. April 22, 1983; 1983, No. 128 (Adj. Sess.), § 1; 1987, No. 39, § 1; 1987, No. 183 (Adj. Sess.), § 20, eff. May 7, 1988; 1989, No. 11, §§ 1, 2; 1991, No. 233 (Adj. Sess.), § 1; 1999, No. 61, § 1; 1999, No. 53, §§ 8, 8a; 2005, No. 197 (Adj. Sess.), § 1; 2007, No. 13, § 36; 2007, No. 137 (Adj. Sess.), § 8; 2009, No. 24, §§ 7, 8; 2011, No. 156 (Adj. Sess.), § 24, eff. May 16, 2012; 2013, No. 22, § 13; 2017, No. 165 (Adj. Sess.), § 25; 2019, No. 131 (Adj. Sess.), § 270; 2021, No. 20, § 261; 2023, No. 168 (Adj. Sess.), § 8, eff. July 1, 2024.)
§ 5052 Name and date of establishment
The date of establishment of the Retirement System shall be July 1, 1975. The System shall be known as the “Vermont Municipal Employees’ Retirement System”, 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.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 2007, No. 13, § 37.)
§ 5053 Members
(a) An employee of an employer who joins the Vermont Municipal Employees’ System may become a member of the System on the effective date of participation of said employer or at a later date if he or she has completed three or more years of continuous service as an employee. If an employee does not elect to join on the effective date of the System, he or she may join on the first of any subsequent month.
(b) Any employee who is hired subsequent to the effective date of participation of his or her employer shall become a member of the System on the date the employee is hired.
(c) A municipality may elect to join the Vermont Municipal Employees’ Retirement System by a vote of the legislative body of such municipality for all its employees or for employees of one or more groups of employees that have a similarity of interest, needs, and general conditions of employment or dates of hire, as determined by the legislative body and approved by the Board. The effective date of participation for such employers shall be designated by the Retirement Board. The vote by the legislative body of a municipality to join the Vermont Municipal Employees’ Retirement System shall be irrevocable.
(d) The Retirement Board may, upon application of the legislative body and an employee, exempt individual employees from membership in the System, provided that the Board determines that the employee is participating in an alternative retirement system, including a retirement plan qualifying under Section 401(a) or 457 of the Internal Revenue Code, which better meets the retirement needs of the employee.
(Added 1973, No. 251 (Adj. Sess.), § 3. 1974; amended 1977, No. 205 (Adj. Sess.), § 2; 1987, No. 39, § 2; 1989, No. 11, § 6, eff. July 1, 1990; 1991, No. 233 (Adj. Sess.), § 2; 1995, No. 118 (Adj. Sess.), § 1; 1999, No. 53, § 12; 1999, No. 158 (Adj. Sess.), § 17; 2007, No. 13, § 38; 2009, No. 24, § 9; 2013, No. 115 (Adj. Sess.), § 3.)
§ 5053a Employees of a supervisory union
(a) For purposes of this section, the term “transferred employee” means an employee under this chapter who transitioned from employment solely by a school district to employment, wholly or in part, by a supervisory union pursuant to 16 V.S.A. § 261a(a)(6) or (8)(E) as amended on June 3, 2010.
(b) A transferred employee from a participating school district shall remain an employee of the school district solely for the purpose of employer participation and employee membership in the System regardless of whether the supervisory union is a participant in the System on the date of transition. The membership and benefits of the transferred employee shall not be impaired or reduced by either negotiations with the supervisory union or school district under 21 V.S.A. chapter 22 or otherwise.
(c) If a supervisory union is a participant in the System on the date of transition, then:
(1) a transferred employee from a nonparticipating district shall not become a member of the System unless, through negotiations with the supervisory union under 21 V.S.A. chapter 22, the supervisory union becomes a participant in the System on the employee’s behalf;
(2) an existing employee of the supervisory union on the date of transition shall be a member to the extent the supervisory union is or becomes a participant in the System on the employee’s behalf; and
(3) a new employee of the supervisory union after the date of transition shall be a member to the extent the supervisory union is or becomes a participant in the System on the employee’s behalf.
(d) If a supervisory union is not a participant in the System on the date of transition, then:
(1) a transferred employee from a nonparticipating district shall not be a member of the System unless, through negotiations with the supervisory union under 21 V.S.A. chapter 22, the supervisory union becomes a participant in the System on the employee’s behalf;
(2) an existing employee of the supervisory union on the date of transition shall not be a member of the System unless, through negotiations with the supervisory union under 21 V.S.A. chapter 22, the supervisory union becomes a participant in the System on the employee’s behalf; and
(3) a new employee of the supervisory union after the date of transition shall not be a member of the System unless, through negotiations with the supervisory union under 21 V.S.A. chapter 22, the supervisory union becomes a participant in the System on the employee’s behalf.
(Added 2011, No. 156 (Adj. Sess.), § 25, eff. May 16, 2012.)
§ 5054 Creditable service
(a) An employee who becomes a member on July 1, 1975 shall receive credit for all prior service as an employee since the employee’s most recent date of hire with his or her present employer, up to a maximum of 20 years. Any other person who becomes a member shall receive credited service for the three year period prior to joining.
(b) All service of a member since he or she last became a member on account of which contributions are made shall be credited service.
(c) The Retirement Board shall fix and determine by rule how much service in any year is equivalent to one year of service, but in no case shall it allow credit for a period of absence without pay of more than a month’s duration, nor shall more than one year of service be creditable for all service in one fiscal year. Service rendered as an employee for the full normal working time in any year shall be equivalent to one year’s service, but in no case shall less than the minimum number of hours established under subdivision 5051(10) of this title be regarded as full normal working time.
(d) Any employee whose continuous service is broken and is later rehired, shall be considered as a new employee without any credit for service previously rendered.
(e) The Retirement Board may enter into a prior service purchase agreement with any municipality which has participated in another funded retirement system to enter the Vermont Municipal Employees’ Retirement System and transfer assets from its predecessor system into the Vermont Municipal Employees’ System representing the liabilities for continuous service accrued prior to the participation effective date. Assets received by the municipality from the predecessor system shall be transferred to the Vermont Municipal Employees’ Retirement System in a lump sum. Liabilities not covered by the lump sum deposit shall be contributed by the municipal employer as an additional employer contribution rate determined in accordance with the provisions of subdivision 5064(c)(6) of this title.
(f) The Board may enter into a prior service purchase agreement with any member who has participated in a public retirement system other than this System. A member who desires to purchase creditable service for service with a public retirement system outside this System must make application to the Board to purchase such creditable service. Upon approval by the Board, a member who desires to purchase additional creditable service must deposit in the Fund, a lump sum equal to the accrued liability (based on the assumptions and methodology adopted by the Board) for such additional creditable service. In lieu of a single payment, a member may, subject to the approval of the Board, contribute in installments of equal monthly payments (over a period not to exceed 60 months) the actuarial equivalent value (based on assumptions adopted by the Board) of the lump sum payment described in this section. Any member who terminates prior to completing all required installment payments as approved by the Board shall receive pro rata credit for service purchased before the member’s date of termination, but if so elected at the time of termination, the member may pay as much in a single sum as is necessary to provide full credit at this time. The payments made by the member pursuant to this subsection shall be treated for all purposes as member contributions. No application may be accepted for purchase of credit for prior service in a public retirement system if at the time of application the member has a vested right to retirement benefits in such public retirement system.
(g) The Board may enter into a prior service purchase agreement with any Group B member who has participated in Group A, a Group C member who has participated in Group A or B for service in that group, a Group D member who has participated in Group A, B, or C for service in one of those groups, or an employer on behalf of a member as described in this subsection. The purchase made by a member shall follow the procedure set forth in subsection (f) of this section. The purchase made by an employer on behalf of a member shall be paid in equal annual installments over a specified period as determined by the Board.
(h) Credit shall be granted for any period of approved absence from service due to any class of military service approved by the Retirement Board, provided the employee returns to service in the municipality within 90 days after having become discharged or separated from such military service, as if such service had been service as an employee of the municipality. The earnable compensation of the employee at the time of entering such military service shall be deemed to be the earnable compensation for the period of such service.
(i) 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 period of 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 such service. The total compensation under this subsection shall not exceed what the earnable compensation would have been had the member not been injured.
(Added 1973, No. 251 (Adj. Sess.), § 3. 1974; amended 1983, No. 128 (Adj. Sess.), § 3; 1987, No. 39, § 3; 1987, No. 183 (Adj. Sess.), § 21, eff. May 7, 1988; 1989, No. 11, § 7; 1991, No. 233 (Adj. Sess.), §§ 3, 4; 1999, No. 61, § 2; 2001, No. 29, § 8; 2007, No. 13, § 39; 2015, No. 114 (Adj. Sess.), § 8.)
§ 5054a Elective credits
(a) Any member may elect to have included in the member’s creditable service, years of service as an employee of another municipality, as a State employee, or as a teacher in a public or private school, as defined by the Board, and years of service in the defined contribution plan authorized under section 5070 of this title when the employee elects to transfer back to the defined benefit plan as a result of his or her employer offering a higher group plan. Any member who so elects shall deposit in the Fund by a single contribution the amount or amounts determined by the System’s actuary to be cost neutral to the System. No application for credit under this subsection shall be granted if at the time of application, the member has a vested right to retirement benefits in another defined benefit retirement system based upon that service.
(b) Any member who has rendered 15 years of creditable 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 or 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 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 member who so elects shall deposit in the Fund by a single contribution the amount or amounts determined by the System’s actuary to be cost-neutral to the System. 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.
(c) Any time a member is required to make a single contribution in connection with an election under this section, a member may contribute over a maximum of five years in installments of equal value. Those contributions shall become a part of the member’s accumulated contributions. Any member who retires before completing payment for the purchase of service under this section 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.
(Added 1999, No. 53, § 8b; amended 2001, No. 29, § 9; 2005, No. 197 (Adj. Sess.), § 2; 2007, No. 13, § 40; 2009, No. 24, § 10; 2015, No. 18, § 8.)
§ 5055 Normal and early retirement
(a) Normal retirement. Any member who has reached his or her normal retirement date may retire on a normal retirement allowance on the first day of any month after separation from service by filing an application in the manner outlined in subdivision (1) of this subsection. Any member in service may be retired on a normal retirement allowance on the first day of the calendar month next following his or her normal retirement date.
(1) Where application for a retirement allowance is required, the member shall apply in writing to the Retirement Board not later than 90 days, or longer for cause shown, after the date upon which the retirement allowance is to begin.
(b)(1) Normal retirement allowance. Upon normal retirement, a Group A member shall receive a normal retirement allowance that shall be equal to one and four-tenths percent of his or her average final compensation multiplied by the number of years of creditable service as a Group A member up to a maximum of 60 percent of average final compensation; a Group B member shall receive a normal retirement allowance which shall be equal to the normal retirement allowance earned as a member of Group A, if any, up to a maximum of 60 percent of average final compensation, plus one and seven-tenths percent of his or her average final compensation multiplied by the number of years of creditable service as a Group B member, up to a maximum of 60 percent of average final compensation; and a Group C or Group D member who retires prior to July 1, 1995 shall receive a normal retirement allowance which shall be equal to the normal retirement allowance earned as a member of Group A, if any, up to a maximum of 60 percent of average final compensation, and that earned as a member of Group B, if any, up to a maximum of 60 percent of average final compensation, plus two and one-half percent of his or her average final compensation multiplied by the number of years of creditable service as a member of Group C, up to a maximum of 50 percent of average final compensation. The normal retirement allowance for a Group B member who is hired on or after July 1, 1999 shall be equal to the early retirement allowance earned as a member of Group A, including reductions set forth in subsection (d) or (e) of this section as appropriate, if any, plus the normal retirement allowance earned as a member of Group B. The normal retirement allowance for a Group C or Group D member who retires on or after July 1, 1995 shall be equal to the early retirement allowance earned as a member of Group A including reductions set forth in subsection (d) or (e) of this section as appropriate, if any, up to a maximum of 60 percent of average final compensation, plus the early retirement allowance earned as a member of Group B including reductions set forth in subsection (d) or (e) of this section as appropriate, if any, up to a maximum of 60 percent of average final compensation, plus the normal retirement allowance earned as a member of Group C or Group D, up to a maximum of 50 percent of average final compensation.
(2) The average final compensation used to calculate the retirement allowance under all plans shall be based on the definition of the average final compensation for the member’s group plan immediately preceding retirement.
(c) Early retirement. Any member who has not reached his or her normal retirement date but who has completed five years of creditable service, at least two and one-half of which have been as a contributor subsequent to joining the System, and who has attained age 55 may retire on an early retirement allowance.
(d) Early retirement allowance. Upon early retirement, a member shall receive an early retirement allowance equal to the retirement benefit reduced by one-half of one percent for each of the first 120 months, one-sixth of one percent for each of the next 120 months, one-eighteenth of one percent for each of the next 120 months, and one-fifty-fourth of one percent for each additional month that the member is under the normal age at the time of early retirement.
(e) Early retirement allowance—police officers. Notwithstanding subsections (c) and (d) of this section, upon early retirement, sworn municipal police officers who have attained age 60 and who are members of Group A or B shall receive an early retirement allowance which shall be equal to his or her normal retirement allowance computed under subsection (b) of this section, reduced by one-quarter of one percent for each month the member is under the normal age at the time of early retirement. Municipal public safety officers who have attained age 50 and completed 20 years of creditable service and who are members of Group D may retire on an early retirement allowance. Members of Group D who retire on an early retirement allowance shall receive an early retirement allowance which shall be equal to the normal retirement allowance at age 55 for Group D service with no reduction applied, but shall have all appropriate penalties applied to accrued Group A, Group B, or Group C service.
(f) In any fiscal year in which a beneficiary resumes service, as that term is defined in section 5051 of this title, after separation from service for a period of time to be determined by the Board, 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.
(g) Upon the subsequent retirement of an employee who once again became a member under subsection (f) of this section, the employee shall once again become a beneficiary whose 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. If the beneficiary is not vested in the System since he or she was last restored to service, the member’s contributions plus accumulated interest shall be returned to him or her.
(Added 1973, No. 251 (Adj. Sess.), § 3. 1974; amended 1977, No. 164 (Adj. Sess.), §§ 1, 2, eff. March 31, 1978; 1987, No. 39, § 4; 1989, No. 11, §§ 3, 8; 1991, No. 233 (Adj. Sess.), § 5; 1995, No. 25, § 1; 1999, No. 53, § 9; 1995, No. 61, § 3; 2001, No. 29, § 10; 2001, No. 116 (Adj. Sess.), § 10, eff. May 28, 2002; 2003, No. 122 (Adj. Sess.), § 297g; 2007, No. 13, § 41; 2007, No. 137 (Adj. Sess.), § 9; 2009, No. 24, § 11.)
§ 5056 Disability retirement
(a) Upon application of a member not more than 90 days before, or later than 90 days, or longer for cause shown, the date a member separates from service, any member who has not reached his or her normal retirement date and has had five or more years of creditable service, may be retired by the Retirement Board on a disability retirement allowance on the first of the month following separation from service; provided that the Medical Board, after an examination of the medical records of the member or a medical examination by a physician or physicians designated by the Medical Board, shall certify that the member is mentally or physically incapacitated for the further performance of the member’s specific job requirements, that such incapacity has existed at and since the time of the member’s separation from service and is likely to be permanent, and that he or she should be retired. If the member has applied for and been granted a disability retirement allowance from the Social Security Administration prior to submission of municipal application, an automatic approval will be granted upon receipt of proof of Social Security disability allowance.
(b) Upon a disability retirement, a member shall receive a normal retirement allowance if he or she has reached his or her normal retirement date; otherwise a member shall receive the allowance accrued to date of disability.
(c) Notwithstanding subsection (b) of this section, a Group D member, upon ordinary disability retirement, shall receive an additional allowance which will be equal to ten percent of the member’s average final compensation for each dependent child, not in excess of three, who has not attained age 18 or, if a dependent student, has not attained age 23, if the member’s compensation from the municipality:
(1) Is not subject to Social Security withholding; or
(2) When added to his or her Social Security benefit, is subject to Social Security withholding.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1983, No. 56, § 2, eff. April 22, 1983; 1987, No. 39, § 5; 1989, No. 11, § 4; Amended 1999, No. 61, § 7; 2005, No. 197 (Adj. Sess.), § 3.)
§ 5056a Benefit denial; evidentiary hearing
(a) An applicant for disability retirement benefits under section 5056 of this title may file a request for an evidentiary hearing with the Retirement Board if the application for benefits is denied.
(b) The hearing shall be an appeal de novo and 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.
(d) The Retirement System or the applicant may appeal a decision of the hearing officer to the Supreme Court pursuant to Rule 13 of the Vermont Rules of Appellate Procedure.
(Added 2003, No. 38, § 7; amended 2005, No. 197 (Adj. Sess.), § 4.)
§ 5057 Reexamination of disability beneficiary
(a) Once each year, the Retirement Board or the Medical Board may require any disability beneficiary who has not reached his or her normal retirement date to undergo a medical examination, by a physician or physicians designated by the Medical Board, the examination to be made at the place of residence of the beneficiary or other place mutually agreed upon. In lieu of a medical examination, the Retirement Board may request current medical records or evidence to substantiate the continued disability status.
(b) Should any disability beneficiary who has not reached his or her normal retirement date refuse to submit to such medical examination or refuse to supply current medical records or other requested medical evidence, his or her allowance may be discontinued until withdrawal of such refusal, and should refusal continue for one year, all the beneficiary’s rights in and to his or her pension may be revoked by the Retirement Board.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 2005, No. 197 (Adj. Sess.), § 5.)
§ 5058 Reinstatement
Should a disability beneficiary be restored to service and should his or her annual earnable compensation then or at any time thereafter be equal to or greater than his or her average final compensation at retirement, or should any other beneficiary be restored to service, his or her retirement allowance shall cease and the beneficiary shall again become a member of the Retirement System. Anything in this chapter to the contrary notwithstanding, upon his or her subsequent retirement he or she shall be credited with all the service creditable to him or her at the time of his or her former retirement. However, if such beneficiary is restored to membership after the attainment of the age of 55 years, his or her pension upon subsequent retirement shall not exceed the sum of the pension that he or she was receiving immediately prior to his or her last restoration to membership and the pension that may have accrued to him or her on account of membership service since his or her last restoration to membership.
(Added 1973, No. 251 (Adj. Sess.), § 3.)
§ 5059 Termination of service; preretirement death benefit
(a) Upon the withdrawal of a member from service prior to retirement for reasons other than death, the amount of the member’s accumulated contributions with interest will be returnable to the member. In lieu of a return of contributions, any member who has completed five years of credited service, and at least two and one-half years of which have been as a contributing member, may allow his or her contributions to remain in the System and receive a deferred vested retirement allowance, commencing as early as the eligibility date for early retirement, which shall be equal to an early or a normal retirement allowance accrued to the member’s date of termination of continuous service. The average final compensation used to calculate the normal retirement allowance under this section shall be increased or decreased annually by a cost of living adjustment equal to one-half of the percentage increase or decrease, calculated to the nearest one-tenth of a percent in the Consumer Price Index, as defined in section 5067 of this title, for the preceding fiscal year. The increase or decrease shall commence on the January 1 immediately following separation from service. The maximum annual adjustment of any retirement allowance resulting from any cost of living adjustment under this subsection shall be two percent for Group A members and three percent for Group B, Group C, or Group D members.
(b) Unless the designated dependent beneficiary elects to receive payment of a deceased member’s accumulated contributions as provided under subsection (a) of this section, the retirement allowance payable to the dependent beneficiary of a deceased Group A, Group B, or Group C member under this section shall be equal to the retirement allowance that would have been payable had the member elected option 1 under section 5060 of this title and retired on the member’s date of death; the retirement allowance payable to the spouse of a Group D member under this section shall be equal to 70 percent of the retirement allowance that would have been payable had the member retired on the member’s date of death. In the case of a member who has not attained the normal retirement date as of his or her date of death, the retirement allowance shall be computed on the basis of a disability retirement allowance or an early retirement allowance, whichever provides the greater benefit to the dependent beneficiary. If the deceased member has no eligible designated dependent beneficiary, the member’s accumulated contributions shall be payable to the member’s designated beneficiaries. In the absence of a designated 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:
(1) In the case of an open estate, to the administrator or executor.
(2) 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.
(3) In the absence of an open estate or Probate Division of the Superior Court decree of distribution, and 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. § 551.
(4) 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.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1987, No. 39, § 6; 1989, No. 11, § 5; 1999, No. 53, § 10; 2001, No. 116 (Adj. Sess.), § 11, eff. May 28, 2002; 2005, No. 197 (Adj. Sess.), § 6; 2007, No. 13, § 42; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2013, No. 22, § 14.)
§ 5060 Optional benefits
(a) Until the first payment on account of a retirement allowance becomes normally due, any member may elect to convert the retirement allowance otherwise payable to the member after retirement into a retirement allowance that is its actuarial equivalent, in accordance with one of the optional forms described below.
Option 1. A reduced retirement allowance payable during the member’s life, with the provision that it shall continue after the member’s death for the life of the beneficiary nominated by the member by written designation duly acknowledged and filed with the Retirement Board at the time of retirement should such beneficiary survive the member; or
Option 2. A reduced retirement allowance payable during the member’s life, with the provision that it shall continue after the member’s death at one-half the rate paid to the member and be paid for the life of the beneficiary nominated by the member by written designation duly acknowledged and filed with the Retirement Board at the time of retirement should such beneficiary survive the member.
(b) Any member who elects to receive a retirement allowance under the provisions of option 1 or 2 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 the member’s nominated beneficiary, the retirement allowance which would have been payable during the member’s life computed pursuant to section 5055 or 5056 of this title, whichever is applicable, shall be paid to the retired member during the remainder of the member’s 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 computed pursuant to section 5055 or 5056 of this title, whichever is applicable.
(Added 1973, No. 251 (Adj. Sess.), § 3; 1999, No. 53, § 11.)
§ 5061 Death benefit; post retirement
The beneficiary of a member who dies after retirement shall receive at the member’s death, a lump sum equal in amount to the difference between the member’s accumulated contributions at the time of retirement and the sum of the annuity payments actually made to the member during his or her lifetime. However, if the member elected an option prior to the commencement of the benefit, the provisions thereof shall apply. Under all options, 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:
(1) In the case of an open estate, to the administrator or executor.
(2) In the case of a closed estate and the residual amount payable is valued at less than $1,000.00, in accordance with the Probate Division of the Superior Court decree of distribution.
(3) In the absence of an open estate or Probate Division of the Superior Court decree of distribution, and the residual amount payable 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. § 551.
(4) 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 residual amount payable. When an estate is opened solely to distribute the residual amount payable under this section, the Probate Division of the Superior Court may waive any filing fees.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 2007, No. 13, § 43; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 5061a Accidental and occupationally-related death benefit
If the Retirement Board shall find on the basis of such evidence as may come before it that a Group D member in service died prior to retirement under the System as the natural and proximate result of an accident occurring at a definite time and place during the course of the member’s performance of duty as an employee, and that such accident was not the result of the member’s own gross negligence or willful misconduct, a retirement allowance shall be paid the member’s dependent beneficiary during the beneficiary’s life. The terms and conditions of such payments shall be the same as those prescribed for Group C members as defined in 3 V.S.A. § 464.
(Added 1999, No. 61, § 8.)
§ 5061b Death benefit after retirement—Group D
If a Group D member in receipt of a retirement allowance dies, the member’s dependent spouse shall receive, until his or her death, a retirement allowance which shall be equal to 70 percent of the retirement allowance to which the member was then entitled, without optional modification, irrespective of whether the member had elected such an option.
(Added 1999, No. 61, § 9.)
§ 5062 Retirement Board; Medical Board; actuary; rates of contribution; safekeeping of securities
(a)(1) The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of this chapter are hereby vested in a board of five trustees, known as the Retirement Board. The Board shall consist of:
(A) the State Treasurer;
(B) two employee representatives who shall at all times during their term of office both be contributing members of the System and have completed five years of creditable service, elected by the membership of the System;
(C) one employer representative who shall at all times during their term of office be a member of a governing body, the chief executive officer, or a supervisor as defined in 21 V.S.A. § 1502(13), of an employer participating in the System, elected by the governing bodies of the System employers; and
(D) one employer representative who shall at all times during their term of office be a member of a governing body, the chief executive officer, or a supervisor as defined in 21 V.S.A. § 1502(13), of an employer participating in the System, appointed by the Governor from a list of not less than three nominations jointly submitted by the Vermont League of Cities and Towns and the Vermont School Boards Association.
(2) An individual shall not be eligible to serve as an employee representative if the individual is eligible to serve as an employer representative.
(b) All trustees shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of their duties. All trustees shall be entitled to receive a per diem as provided in 32 V.S.A. § 1010 except a trustee who is a State or municipal employee, provided that a trustee who is a municipal employee shall be entitled to the per diem when the trustee’s compensation from the municipality is reduced as result of the performance of his or her official duties, or the trustee’s official duties are performed on his or her personal time. Compensation or reimbursements under this subsection shall be from the Fund of the Retirement System.
(c) Each trustee shall be entitled to one vote in the Retirement Board. Three trustees shall constitute a quorum for the transaction of any business. A majority vote of those present and voting shall be necessary for any resolution or action by the Retirement Board at any meeting of the Board. All trustees shall be notified of any meeting of the Board. The State Treasurer may designate in writing a person within the State Treasurer’s Office to attend a meeting or meetings of the Retirement Board in the State Treasurer’s place. The designation shall be filed with the Secretary of the Board. A person so designated shall have the same voting rights and responsibilities as the State Treasurer at such meeting or meetings except that the designee shall not automatically assume the Treasurer’s place as an officer of the Board.
(d) Subject to the limitations of this chapter, the Retirement Board shall, from time to time, establish rules and regulations for the administration of the Fund of the Retirement System and for the transaction of its business.
(e) The Retirement Board shall elect from its membership a chair and shall appoint a secretary who may be, but need not be, one of the trustees. It shall engage such medical, actuarial, and other services as shall be required to transact the business of the Retirement System. The compensation of all persons engaged by the Retirement Board, and all other expenses of the Board necessary for the operation of the Retirement System, shall be paid at such rates and in such amounts as the Board shall approve.
(f) The Retirement Board shall keep in convenient form such data as shall be necessary for actuarial valuation of the Fund of the Retirement System, and for checking the experience of the System.
(g) The Retirement Board shall keep a record of all its proceedings, which shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the Retirement System for the preceding fiscal year, the amount of the accumulated cash and securities of the System, and the last balance sheet showing the financial condition of the Retirement System by means of an actuarial valuation of the assets and liabilities of the System.
(h) The Attorney General of the State shall be legal advisor to the Retirement Board.
(i) The Retirement Board shall designate a Medical Board to be composed of three physicians not eligible to participate in the Retirement System. If required, other physicians may be employed to report on special cases. 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 an application for disability retirement, and shall report in writing to the Retirement Board of its conclusions and recommendations upon all matters referred to it.
(j) The Retirement Board shall designate an actuary who shall be the technical advisor of the Board on matters regarding the operation of the Fund of the Retirement System and shall perform such other duties as are required in connection therewith.
(k) Immediately after the establishment of the Retirement System, the Retirement Board shall adopt for the Retirement 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 Retirement System, and taking into account the results of such investigation, the Retirement Board shall adopt for the Retirement 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.
(l) On the basis of such mortality and service tables as the Retirement Board shall adopt, the actuary shall make annual valuations of the assets and liabilities of the Fund of the Retirement System.
(m) The Vermont Pension Investment Commission shall designate from time to time a depository for the securities and evidences of indebtedness held in the Fund of the System and may contract for the safekeeping of securities and evidences of indebtedness within and without the State of Vermont in such banks, trust companies, and safe-deposit facilities as it shall from time to time determine. The necessary and incidental expenses of such safekeeping and for service rendered, including advisory services in investment matters, shall be paid from the operation expenses of the System as hereinafter provided. Any agreement for the safekeeping of securities or evidences of indebtedness shall provide for the access to such securities and evidences of indebtedness, except securities loaned pursuant to a securities lending agreement as authorized by subsection (o) of this section, at any time by the custodian or any authorized agent of the State for audit or other purposes.
(n) The Board shall determine the election procedures by which the two employee representatives and employer representative elected by the governing bodies of the System employers who are members of the Board are elected. Elections shall be held to take effect on July 1, 2010, for the first employee representative and employer representative elected by the governing bodies of the System employers and every four years thereafter; and on July 1, 2012, for the second employee representative and employer representative appointed by the Governor and every four years thereafter. The term in office for each elected member of the Board shall be four years. Vacancies of an elected Board member’s seat in midterm shall be filled by an individual eligible for election to that seat designated by the remaining members of the Board.
(o) 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 U.S. 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 established by the prudent investor rule under 9 V.S.A. chapter 147.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1977, No. 205 (Adj. Sess.), § 3; 1985, No. 223 (Adj. Sess.); 1987, No. 92, § 5, eff. June 23, 1987; 1991, No. 151 (Adj. Sess.), §§ 5, 6; 1995, No. 36, § 9; 1999, No. 158 (Adj. Sess.), § 25; 2005, No. 50, § 8; 2007, No. 13, § 44; 2009, No. 139 (Adj. Sess.), § 8, eff. June 30, 2010; 2013, No. 161 (Adj. Sess.), § 72; 2021, No. 75, § 8, eff. June 8, 2021; 2021, No. 114 (Adj. Sess.), § 27, eff. July 1, 2022.)
§ 5063 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 Fund created by this chapter, and with respect to them may invest and reinvest the assets of the Fund, and hold, purchase, sell, assign, transfer, and dispose of the securities and investments in which the assets of the Fund have been invested and reinvested. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of capital as well as the probable income to be derived.
(b) From time to time, the Retirement Board shall set the rate or rates of regular interest at such percent rate compounded annually as shall be determined by the Board, such rate to be limited to a minimum of three percent and a maximum of five percent.
(c) The State Treasurer shall be the custodian of the assets of the Fund of the Retirement System. All payments from the Fund shall be made by the Treasurer or by the Deputy Treasurer, with approval of the Retirement Board. A duly attested copy of a resolution of the Retirement Board designating such persons and bearing on its face specimen signatures of such persons shall be filed with the State Treasurer as his or her authority for making payments upon such vouchers.
(d) [Repealed.]
(e) Except as otherwise herein provided, no trustee and no employee of the Retirement Board or 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, member of the Commission, 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 monies loaned to or borrowed from the Board.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1981, No. 41, § 37; 1985, No. 171 (Adj. Sess.), § 5, eff. May 7, 1986; 1987, No. 80, § 10, eff. June 9, 1987; 1995, No. 118 (Adj. Sess.), § 2; 2005, No. 50, § 9; 2007, No. 13, § 45; 2021, No. 75, § 9, eff. June 8, 2021.)
§ 5063a 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 which 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 shall 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. 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.
(k) 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 age 62, 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) Rules. The Board may adopt rules to ensure that this chapter complies with federal law requirements.
(Added 2007, No. 13, § 46; amended 2009, No. 24, § 12; 2015, No. 18, § 9; 2017, No. 165 (Adj. Sess.), § 26; 2019, No. 14, § 68, eff. April 30, 2019.)
§ 5064 Funds
(a) Fund. All of the assets of the Retirement System shall be credited to the Vermont Municipal Retirement Fund.
(b) Member savings. Contributions deducted from the compensation of members together with any member contributions transferred from a predecessor system shall be accumulated in the Fund and separately recorded for each member. Contributions shall be made by Group A members at the rate of three percent of earnable compensation. Contributions shall be made by Group B members at the rate of five percent of earnable compensation. Contributions shall be made by Group C and Group D members at a rate of 11 percent of earnable compensation. Additionally, if an employee remains in Group C and is employed by an employer who elects to revoke its Group C membership in accordance with subsection 5068(f) of this title, the rate established in this subsection will be adjusted. This adjustment shall be determined by subtracting the Group B rate, or if not applicable, the Group A rate determined in subdivision (c)(1) of this section from the Group C rate determined in subdivision (c)(1) of this section.
(1) 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 member shall be deemed to consent and agree to the deductions made and provided pursuant to this section and shall receipt for the member’s full compensation, and payment of 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.
(2) The contributions of a member and interest as may be allowed thereon which are withdrawn by the member or paid to the member’s estate or to the designated beneficiary in event of the member’s death, shall be paid from the Fund.
(3) The employer shall make one of the following elections:
(A) To make, on behalf of the members, all or any part of contributions required to be made by members under this section. Each of the amounts shall be deducted until the member retires or otherwise withdraws from service, and when deducted shall be paid into the Fund and credited to the individual account of the member from whose compensation the deduction was made.
(B) Pursuant to the provisions of Section 414(h) of the Internal Revenue Code, to pick up and pay the contributions required to be paid by members with respect to service rendered on and after July 1, 1999. Contributions picked up by the municipality under this election shall be designated for all purposes as member contributions, except that they shall be treated as employer 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 municipality. This reduction, however, shall not be used to determine annual earnable compensation for purposes of determining average final compensation. Contributions picked up under this subdivision shall be credited to the Fund.
(c) Employer contributions, earnings, and payments. All employer contributions and all reserves for the payment of all pensions and other benefits, including all interest and dividends earned on the assets of the Retirement System shall be accumulated in the Fund, and all benefits payable under the System and expenses of the System shall be paid from the Fund.
(1) On account of each member, an employer shall report earnable compensation and pay annually, in installments as determined by the Board, into the Fund an amount equal to the certain percentage of the annual earnable compensation of such member. Such contribution percentage shall be separately determined for each group of membership within the Retirement System as the sum of “normal contribution rate” for such membership group and its “accrued liability contribution rate,” such sum to be reduced by the member contribution rate provided for in subsection (b) of this section.
(2) On the basis of the actuarial assumptions and methodology as shall be adopted by the Retirement Board, immediately after making each actuarial valuation, the actuary shall determine the “normal contribution rate” for each group of membership. The product of a membership group’s normal contribution rate and its total earnable compensation shall be referred to as that membership group’s “normal contribution.”
(3) In each actuarial valuation, the actuary shall, based on methodology adopted by the Retirement Board, determine the amount of the Fund attributable to each membership group within the Retirement System for valuation purposes. The difference between each membership group’s accrued liability and its allocated share of Fund assets as of any valuation date shall be referred to as such membership group’s “unfunded accrued liability.”
(4) For each actuarial valuation completed on or after July 1, 2009, the accrued liability contribution rate shall be computed for each membership group based on the actuarial assumptions and methodology adopted by the Retirement Board as the rate percent of the earnable compensation of the employees in such membership group which, if applied to expected future earnings of current and future employees of such membership group, would be expected to liquidate the membership group’s unfunded accrued liability on or before June 30, 2038. The product of a membership group’s accrued liability rate and its total earnable compensation shall be referred to as that membership group’s “accrued liability contribution.”
(5) The accrued liability contribution for a separate membership group shall be discontinued, and the unfunded accrued liability for such membership group shall be set equal to zero in the event the assets attributable to such membership group should exceed the accrued liability as determined under the assumptions and methodology approved by the Retirement Board.
(6) The Retirement Board shall have performed a separate actuarial valuation for each group entering the System under the provisions of subsection 5054(e) of this title to determine the amount of liability, the deposit required to pay for that liability, and the amount of increased rate of contribution required to pay for the liability not covered by any lump sum deposit, such rate to be calculated by the actuary as the excess, if any, of the accrued liability contribution rate of subdivision (c)(3) of this section determined separately for the group entering the System over such rate for the System, calculated excluding such group. Such additional rate shall be paid by the entering group over a specified period as determined by the Board, not to exceed 30 years. The rate determined as a result of the actuarial calculation under this subdivision shall be paid by each employer entering the System under subsection 5054(e) in addition to the amount paid in accordance with subdivision (4) of this subsection.
(d) Operation expenses. As provided by law, the Board shall certify to the Governor or Governor-Elect an estimated amount required for operation expenses of the System in the next annual or biennial period. The amount so certified shall be included in the budget, with the revenue derived from the Vermont Municipal Retirement Fund, and submitted to the General Assembly.
(e) Remittance of member contributions and employer contributions. Each employer shall remit its employer contributions and the member contributions applicable to its employees in installments as determined by the Board to the State Treasurer.
(1) Any payments due which are not received within 30 days after the installment due date set by the Board shall result in a penalty assessment against the employer at the rate of one percent of the amount due for each month calculated from the installment due date, provided that the Board may, in its discretion, waive part or all of said penalty assessment if good cause is shown. The delinquent payments and penalties thereon may be recovered by action in a court of competent jurisdiction against the employer liable therefor or may be deducted by, or at the request of, the State Treasurer from any other monies payable to such employer by the State or any department or agency thereof.
(2) 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.
(3) 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.
(4) The System may enforce the provisions of this section in Washington Superior Court.
(5) The Board may, in its discretion, waive part or all of a penalty assessment for good cause shown.
(f) [Repealed.]
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 1975, No. 254 (Adj. Sess.), §§ 149-151; 1977, No. 205 (Adj. Sess.), § 4; 1983, No. 128 (Adj. Sess.), § 2; 1985, No. 74, § 302; 1987, No. 39, §§ 7, 8, 11; 1989, No. 11, § 8a; 1991, No. 233 (Adj. Sess.), § 6; 1995, No. 25, §§ 2, 3; 1999, No. 53, § 13; 1999, No. 61, § 4; 1999, No. 158 (Adj. Sess.), §§ 14, 16; 2001, No. 29, § 11; 2005, No. 44, § 1; 2005, No. 197 (Adj. Sess.), § 7; 2007, No. 13, § 47; 2009, No. 24, § 12a; 2009, No. 139 (Adj. Sess.), § 9.)
§ 5065 Errors
Should any change or error in the records result in any member or beneficiary receiving from the Retirement System more or less than he or she would have been entitled to receive had the records been correct, the Retirement Board shall have the power to correct such error, and to adjust as far as practicable 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.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 2017, No. 165 (Adj. Sess.), § 27.)
§ 5066 Exemption of member’s interest; assignment
That portion of the salary or wages of a member deducted or to be deducted under this chapter, the right of a member to an annuity, pension, or retirement allowance hereunder, and all the member’s rights in the assets of the Retirement System, shall be exempt from taxation, except 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 of any part of the assets to which the member is or may be entitled, or of any right to or interest in those assets, shall be valid, except to the extent permitted by this chapter.
(Added 1973, No. 251 (Adj. Sess.), § 3; amended 2007, No. 13, § 48.)
§ 5066a 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 which is most recent in time and which has been served on the System will control.
(b) A member’s or beneficiary’s rights in the Retirement 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, § 10; amended 2009, No. 154 (Adj. Sess.), § 238.)
§ 5067 Postretirement adjustments to retirement allowances
(a) For members, as of June 30 in each year, commencing June 30, 1987, a determination shall be made of the increase, to the nearest one-tenth of a percent of the Consumer Price Index for the preceding fiscal year. The retirement allowance of each beneficiary in receipt of an allowance for at least one year on the next following December 31 shall be increased by an amount equal to one-half of the percentage increase. The increase shall commence on the January 1 immediately following such December 31. The adjustment shall apply to members of the Group A, B, or D plans receiving an early retirement allowance only in the year following attainment of normal retirement age, provided the member has received benefits for at least 12 months as of December 31 of the year preceding any January adjustment. The maximum adjustment of any retirement allowance resulting from any such determination shall be two percent for Group A members and three percent for Group B, C, and D members, and no retirement allowance shall be reduced below the amount payable to the beneficiary without regard to the provisions of this section.
(b) For purposes of this section, Consumer Price Index shall mean 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.
(c) No adjustment shall be made pursuant to this section in a deferred vested allowance payable pursuant to subsection 5059(a) of this title prior to its commencement.
(d) For all members of Group A and Group B, who have retired prior to July 1, 1987, there is hereby granted on July 1, 1989 a cost of living adjustment to each member’s retirement allowance equal to two percent for each year of retirement prior to July 1, 1987 but not to exceed a total adjustment greater than ten percent.
(e) No adjustment shall be made pursuant to this section in January if the Consumer Price Index as of the previous June 30th is a negative rate.
(Added 1987, No. 39, § 9; amended 1989, No. 11, § 9; 1991, No. 233 (Adj. Sess.), § 7; 1999, No. 61, § 5; 2005, No. 197 (Adj. Sess.), § 8; 2009, No. 139 (Adj. Sess.), § 10a; 2011, No. 63, § H.3.)
§ 5068 Election
(a) Subject to the provisions of subsections (b) and (c) of this section, all employees shall be members of Group A, unless an election to become a member of Group B, C, or D is made pursuant to this section or, in the case of Group B or C, unless a collective bargaining agreement negotiated pursuant to 21 V.S.A. chapter 22 so specifies.
(b) On or before September 30 of any year, the legislative body of a municipality may designate groups of employees eligible to become members of Group B or C. Such designation may apply to all eligible employees or to one or more of the following groups of employees:
(1) sworn police officers appointed under chapter 55 of this title or a comparable provision of a municipal charter;
(2) firefighters and officers of fire departments appointed under chapter 57 of this title or a comparable provision of a municipal charter;
(3) other groups of employees that have a similarity of interests, needs, and general conditions of employment, as determined by the legislative body.
(c) On or before September 30 of any year, the legislative body of a municipality may designate groups of employees eligible to become members of Group D. The designation may apply to one or more of the following groups of employees:
(1) sworn police officers appointed under chapter 55 of this title or a comparable provision of a municipal charter;
(2) firefighters and officers of fire departments appointed under chapter 57 of this title or a comparable provision of a municipal charter;
(3) emergency medical personnel as defined in 24 V.S.A. § 2651.
(d) On or before any December 31 following a designation under subsection (b) or (c) of this section, individual employees so choosing shall become members of Group B, C, or D effective the July 1 immediately following, and all employees subsequently hired into that designated group shall become members of the group designated. However, for employees making such an election on or after December 31, 1993, unless such an election shall be made on the December 31 immediately following the designation made pursuant to subsection (b) or (c) of this section, a member must complete three years of creditable service as a member of the group designated in subsection (b) or (c) of this section to be eligible to retire as a member of that group.
(e) The designation by the legislative body or the municipality, as appropriate, an election to become members of Group B, C, or D, or entry into Group B or C pursuant to a collective bargaining agreement, shall be irrevocable and shall apply so long as the employee remains in the designated employee group, except that a designation and election to Group B may be superseded by similar actions allowing participation in Group C and that a designation and election to Group B or C may be superseded by similar actions allowing participation in Group D.
(f) Upon written request from the legislative body, the Board may waive the requirements that the actions required in subsections (b), (c), and (d) of this section be completed by the dates specified, if it determines that all membership enrollment requirements can be completed in time for membership to be effective on July 1.
(g) Any employer who is a member of Group C as of June 30, 1995 may revoke Group C membership during the period that begins on July 1, 1995 and ends on March 31, 1996. Any employee who is a member of Group C as of June 30, 1995 may revoke Group C membership during the period that begins on July 1, 1995 and ends on June 30, 1996. If no election is made during these periods, Group C will be the designated group. An election under this subsection is irrevocable.
(1) Any employee may retain Group C membership regardless of the employer’s election.
(2) An employee or employer who revokes Group C membership shall return to the group of membership just prior to becoming a Group C member, provided that an employee or employer who was a member of Group A prior to becoming a Group C member may elect to return to Group A or become a member of Group B, if offered by the employer. In the absence of a prior group, any group offered by the employer shall be the designated group.
(3) Any employee who elects to revoke Group C membership under this subsection shall be entitled to a refund. The refund shall be an amount equal to the contributions made as a Group C member under subsection (b) of section 5064 of this title in excess of the contribution the member would have made had he or she not transferred to Group C, plus the accumulated interest.
(4) The procedure for election under this subsection shall be established by the Board. The Board shall establish the date of election, and provide all members with at least 30-days’ advance notice of the election together with a general written explanation of the election and its consequences, including an individual comparison of projected benefits at no cost to the member.
(Added 1987, No. 39, § 10; amended 1991, No. 233 (Adj. Sess.), § 8, eff. May 28, 1992; 1995, No. 25, § 4; 1999, No. 61, § 6; 2005, No. 197 (Adj. Sess.), § 9; 2019, No. 25, § 3, eff. May 16, 2019.)
§ 5069 Insurance
(a) The Board may enter into insurance arrangements to provide health and medical benefits for retired members and their dependents. The Board may enter into insurance arrangements to provide dental coverage for retired members and their dependents, provided the municipalities or the System has no legal obligation to pay any portion of the dental benefit premiums.
(b) The Board may, to the extent that it may be funded as described in this subsection, establish an uninsured program for the reimbursement of certain health care costs of retired members and their dependents pursuant to the following:
(1) Benefits under an uninsured program shall be funded by redirecting a portion of contributions from employers. Employer contributions shall only be so redirected to the extent that those contributions offset an existing actuarially determined surplus with respect to the actuarial cost method and funding adopted by the Board. The Board may establish a trust to hold and invest employer contributions and to pay the benefits and administrative expenses of the program. The benefits or administrative expenses of this program shall not be paid from the Annuity Fund, the Pension Fund, or the Expense Fund.
(2) The Board shall have the discretion to determine the method for allocating the fund balance to retired members; provided, however, that the aggregate benefits payable under this program may not exceed the aggregate contributions made by employers and earnings, if any, on those contributions. Prior to July 1 of each year, the Board shall notify each retired member of the amount available for reimbursement over the succeeding 12 months and the procedures by which the retired member or dependent may request reimbursement.
(3) Retired members and their dependents shall be required to provide substantiation of their health care expense claims to the extent required by the Internal Revenue Service for tax-favored treatment of their reimbursements. The Board may enter into an agreement with a third party administrator to process the expense claims of retired members and their dependents.
(c) As an alternative to providing health care insurance, the Board, in its discretion, may assist retired members of the System with the cost of health care by authorizing payment of a health care stipend to retired members in an amount to be determined by the Board. In the event the Board determines to provide such a stipend, it shall annually review the stipend, in consultation with the actuary designated pursuant to subsection 5062(j) of this title, and determine whether to continue to provide the stipend and the amount to be paid. If authorized by the Board, a stipend shall be paid in 12 monthly installments commencing on July 1 of that year.
(Added 1991, No. 233 (Adj. Sess.), § 9; amended 1999, No. 158 (Adj. Sess.), § 15; 2005, No. 197 (Adj. Sess.), § 10; 2009, No. 24, § 13.)
§ 5070 Defined contribution retirement plan
(a) The Board may approve a defined contribution retirement plan for one or more groups of members. The plan shall qualify as a defined contribution plan under the U.S. Internal Revenue Code, as amended. Participation in a defined contribution plan offered under this section shall be in lieu of participation in any other plan established under this title. The Board shall ensure that objective educational material be prepared and presented to the employees in order to enable them to make an informed decision, under the assumption that each participant is an unsophisticated investor.
(b) 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 for employees participating in the defined contribution plan, and each of those amounts shall be paid into the defined contribution fund and credited to the individual account of the member from whose compensation the deduction was made.
(1) Employer reports and corresponding member contributions required by this subsection shall be provided by the due date established by the Board. An employer that provides reports or remits 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.
(2) Employers shall provide accurate reports. An employer who provides an inaccurate report shall be responsible for correcting any deficiencies and shall reimburse the System for any costs incurred by the System as a result of inaccuracy.
(3) 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.
(4) The System may enforce the provisions of this subsection in Washington Superior Court.
(5) The Board may, in its discretion, waive part or all of a penalty assessment for good cause shown.
(Added 1999, No. 53, § 14; amended 2007, No. 13, § 49.)
Chapter 126 Public Transportation
Subchapter 1 Public Transportation Policy
§ 5081 Definition
As used in this subchapter:
“Public transportation” means the transportation of persons, including groups of the general public with special needs, by all means available to the general public.
(Added 1989, No. 262 (Adj. Sess.).)
§ 5082 Findings and declarations
(a) Public transportation is an important matter of State concern, essential to the economic growth of the State and to the public health, safety, and welfare of present and future generations of Vermonters.
(b) In each fiscal year, a portion of the Transportation Fund shall be dedicated to the continued support of public transit.
(Added 1989, No. 262 (Adj. Sess.); amended 2001, No. 141 (Adj. Sess.), § 14, eff. June 21, 2002.)
§ 5083 Declaration of policy
(a) It shall be the State’s policy to make maximum use of available federal funds for the support of public transportation. State operating support funds shall be included in Agency operating budgets to the extent that funds are available. State policy shall support the maintenance of existing public transit services and creation of new services including the following goals:
(1) Provision for basic mobility for transit-dependent persons, as defined in the current public transit policy plan, including meeting the performance standards for urban, suburban, and rural areas. The density of a service area’s population is an important factor in determining whether the service offered is fixed route, demand-response, or volunteer drivers.
(2) Expanding public transit service in rural areas and increasing ridership statewide.
(3) Access to employment, including creation of demand-response service.
(4) Congestion mitigation to preserve air quality, decrease greenhouse gas emissions, and sustain the highway network.
(5) Advancement of economic development objectives, including services for workers and visitors that support the travel and tourism industry. Applicants for “new starts” in this service sector shall demonstrate a high level of locally derived income for operating costs from fare-box recovery, contract income, or other income.
(b) The Agency of Transportation shall evaluate proposals for new public transit service submitted by providers in response to a notice of funding availability, by examining feasibility studies submitted by providers. The feasibility studies shall address criteria set forth in the most recent public transit policy plan.
(c) The Agency, in cooperation with the Public Transit Advisory Council, shall adopt appropriate performance and service standards for transit systems receiving federal or State assistance. The Agency of Transportation shall provide guidance, training, funding, and technical assistance to transit systems in order to meet the performance and service standards established.
(d) The Agency of Transportation shall provide written guidance, funding, and technical assistance in the preparation of financial and management plans for public transit systems for each fiscal year. To provide a foundation for financial stability and reliability in the provision of transportation services to the public, the Agency of Transportation shall, in cooperation with the Public Transit Advisory Council, establish both short and long-range fiscal, operating, and capital investment plans to support the goals outlined in this section and regional transportation development plan proposals and regional plans as required by section 5089 of this title.
(Added 1989, No. 262 (Adj. Sess.); amended 1993, No. 211 (Adj. Sess.), § 21, eff. June 17, 1994; 1999, No. 156 (Adj. Sess.), § 18, eff. May 29, 2000; 2003, No. 56, § 37, eff. June 4, 2003; 2011, No. 153 (Adj. Sess.), § 32; 2019, No. 59, § 18.)
§ 5084 Public Transit Advisory Council
(a) The Public Transit Advisory Council shall be created by the Secretary of Transportation under 19 V.S.A. § 7(f)(5), to consist of the following members:
(1) the Secretary of Transportation or designee;
(2) three representatives of the Vermont Public Transportation Association;
(3) a representative of the Green Mountain Transit Authority;
(4) the Secretary of Human Services or designee;
(5) the Commissioner of Labor or designee;
(6) the Secretary of Commerce and Community Development or designee;
(7) a representative of the Vermont Center for Independent Living;
(8) a representative of the Community of Vermont Elders;
(9) a representative of private bus operators and taxi services;
(10) a representative of Vermont intercity bus operators;
(11) a representative of the Vermont Association of Planning and Development Agencies;
(12) a representative of the Vermont League of Cities and Towns;
(13) a citizen appointed by the Governor;
(14) a member of the Senate, appointed by the Committee on Committees; and
(15) a member of the House of Representatives, appointed by the Speaker.
(b) The Advisory Council shall be chaired by the Secretary of Transportation or designee.
(c) The Advisory Council shall meet not fewer than four times during each State fiscal year, excluding subcommittee meetings. The legislative members of the Council shall be entitled to compensation and expenses as provided in 2 V.S.A. § 23. Members who are not State employees shall receive reimbursement of expenses and a per diem as provided in 32 V.S.A. § 1010.
(d) The Advisory Council shall serve as an advisory group to the Agency of Transportation on all matters relating to public transit service as defined in section 5088 of this title.
(e) [Repealed.]
(Added 1999, No. 156 (Adj. Sess.), § 17, eff. May 29, 2000; amended 2003, No. 56, § 38, eff. June 4, 2003; 2003, No. 160 (Adj. Sess.), § 50, eff. June 9, 2004; 2011, No. 62, § 32; 2017, No. 158 (Adj. Sess.), § 23, eff. May 21, 2018; 2025, No. 18, § 48, eff. May 13, 2025.)
Subchapter 2 Public Transit
§ 5088 Definitions
As used in this subchapter:
(1) “Fixed route service” means a public transit service operated over a set route or network of routes on a regular schedule.
(2) “New public transit service” means any eligible public transit service not previously provided.
(3) “Nonprofit public transit system” means a domestic corporation organized in accordance with Title 11B having the majority of its governing board appointed by the legislative body of the municipality or municipalities served, and a function of providing a public transit service or a foreign nonprofit corporation located in a state which borders Vermont and provides public transit services in both Vermont and the bordering state.
(4) “Paratransit” means transportation services, provided through flexible scheduling or routing in small vehicles, such as ride-matching, dial-a-ride, jitney, subscription, and route-deviated bus services.
(5) A “public transit service” means any fixed route, paratransit, transportation brokerage, user-side subsidy, and or rideshare/ride-match program which is available to any person upon payment of the proper fare, and which is promoted to be available to all members of the public, including those with special needs.
(6) A “public transit system” means:
(A) a transportation authority as provided by 24 App. V.S.A. chapter 801;
(B) a transit authority or transit district as provided by chapter 127 of this title;
(C) any municipal transit system, or any nonprofit public transit system;
(D) a local chapter of the American National Red Cross created by Congress under 36 U.S.C. chapter 3001 that provides public transit service; or
(E) an intercity bus carrier.
(7) [Repealed.]
(8) “Transportation brokerage” means matching the most appropriate services and providers to individual markets.
(9) “User-side subsidy” means a direct subsidy to users which allows them to select the service they prefer.
(Added 1989, No. 262 (Adj. Sess.); amended 1991, No. 50, § 253a; 1993, No. 211 (Adj. Sess.), § 16, eff. June 17, 1994; 1995, No. 60, § 28, eff. April 25, 1995; 2001, No. 64, § 17, eff. June 16, 2001; 2009, No. 123 (Adj. Sess.), § 47(1).)
§ 5089 Planning
(a) The Agency of Transportation’s Public Transit Plan for the State shall be amended no less frequently than every five years. The development of the State Public Transit Plan shall include consultation with public transit providers, the metropolitan planning organization, and the regional planning commissions and their transportation advisory committees to ensure the integration of transit planning with the transportation planning initiative as well as conformance with chapter 117 of this title (municipal and regional planning and development). Regional plans, together with the Agency of Transportation’s Public Transit Plan shall function to coordinate the provision of public, private nonprofit, and private for-profit regional public transit services, in order to ensure effective local, regional, and statewide delivery of services.
(b) Recognizing that the growing demand for new regional and commuter services must be considered within the context of the continuing need for local transit services that meet basic mobility needs, the Agency of Transportation shall consult annually with the regional planning commissions and public transit providers in advance of the award of available planning funds. The Agency shall maintain a working list of both short- and long-term planning needs, goals, and objectives that balances the needs for regional service with the need for local service. Available planning funds shall be awarded in accordance with State and federal law and as deemed necessary and appropriate by the Agency following consultation with the regional planning commissions and the public transit providers.
(Added 1989, No. 262 (Adj. Sess.); amended 1993, No. 211 (Adj. Sess.), § 17, eff. June 17, 1994; 2001, No. 64, § 18, eff. June 16, 2001; 2009, No. 50, § 73; 2011, No. 62, § 33.)
§ 5090 Human service transit
The Secretary of Human Services shall direct Agency of Human Services programs to purchase client transportation through public transit systems in all instances where public transit services are appropriate to client needs and as cost-efficient as other transportation.
(Added 1989, No. 262 (Adj. Sess.); amended 1993, No. 211 (Adj. Sess.), § 18, eff. June 17, 1994.)
§ 5091 Funding
(a) The Secretary of Transportation, within the annual budget setting process, shall meet with the Public Transit Advisory Council and representatives of public transit systems to establish the level of State funds needed by public transit systems in Vermont, and shall consider this level in formulating the Agency of Transportation’s proposed Transportation Program.
(b) State funds authorized by the General Assembly as grant assistance for the operation of public transit services shall be eligible for use as a matching source for federal funds.
(c) The same fiscal accountability requirements and regulatory standards shall apply to all grantees of funds as provided by rule of the Secretary of Transportation.
(d) Rideshare, capital, contracted services, and transportation brokerage services are not to be considered as operating funds under this section.
(e) State funds shall be paid to eligible grantees as follows:
(1) the first payment of 50 percent of the estimated annual fiscal year total shall be paid immediately upon execution of the grant;
(2) subsequent payments shall be paid quarterly based on projected need determined by current fiscal year spending and availability of funds;
(3) additional payments, if necessary, shall occur only if actual costs exceed the previous payments and if funds are available.
(f) [Repealed.]
(g) Monies which are in excess of the grantee’s net project cost shall be returned to the Agency of Transportation within 30 days of the Agency’s acceptance of the post-project audit.
(h) Applicants for State funding shall meet the requirements of federal laws and regulations relating to fiscal accountability and accessibility by persons with a disability.
(i) The Agency of Transportation shall distribute State and federal funds to public transit systems through an annual competitive program that implements the public transportation policy goals set forth in section 5083 of this title and 19 V.S.A. § 10f.
(j) Notwithstanding subsection (i) of this section, and to the extent that appropriated funds are available, no provider who is otherwise eligible shall receive a lesser amount of operating funds than it expended on eligible operating expenses in State fiscal year 2001 for services that remain ongoing, and provided that the amount shall be evaluated as necessary to address changes in the cost of providing the services. In the event that a provider merges with or is otherwise succeeded by another provider, the successor provider shall be entitled to the same protection under this subsection that would have been available to the superseded provider.
(k) Eligibility for an intercity bus carrier is limited to capital and operating assistance for routes which have not demonstrated economic viability. The Agency of Transportation is directed to develop procedures and criteria by December 31, 2001 to administer this subsection. Funding shall be appropriated and distributed outside the funding formula of subsection (i) of this section.
(l) State operating assistance appropriated for projects coming off new public transit service funding in fiscal year 2002 shall not be distributed pursuant to the formula in subsection (i) of this section, but shall be added to the eligible grantees’ funding under subsection (j) of this section to the extent that they meet criteria for successful evaluation at the end of 2002.
(m) Any new State operating assistance appropriated to replace new public transit service funds for routes that have successfully met the evaluation criteria after State fiscal year 2002 shall not be distributed pursuant to the formula in subsection (i) of this section, but shall be added to the eligible grantees’ funding under subsection (j) of this section.
(Added 1989, No. 262 (Adj. Sess.); amended 1991, No. 175 (Adj. Sess.), § 21, eff. May 15, 1992; 1993, No. 61, § 28, eff. June 3, 1993; 1993, No. 211 (Adj. Sess.), §§ 19, 21, eff. June 17, 1994; 2001, No. 64, § 19, eff. June 16, 2001; 2003, No. 56, § 39, eff. June 4, 2003; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2009, No. 123 (Adj. Sess.), § 47(2); 2013, No. 96 (Adj. Sess.), § 163; 2017, No. 38, § 17; 2019, No. 59, § 19.)
§ 5092 Repealed
[Repealed]
2013, No. 167 (Adj. Sess.), § 25.
§ 5093 Rules
Rules reasonable and necessary to implement this chapter may be adopted by the Secretary of Transportation pursuant to the provisions of 3 V.S.A. chapter 25.
(Added 1989, No. 262 (Adj. Sess.); amended 1993, No. 211 (Adj. Sess.), § 20, eff. June 17, 1994; 2003, No. 56, § 40, eff. June 4, 2003.)
§ 5094 Powers of Secretary of Transportation
On behalf of the State and to carry out the purposes of this chapter and 19 V.S.A. § 10f, the Secretary of Transportation may:
(1) execute and file an application with the Federal Transit Administration for federal assistance authorized by Titles 23 and 49 of the U.S. Code or other federal law;
(2) execute and file certifications, assurances, or other documents the Federal Transit Administration may require before awarding a federal assistance grant or cooperative agreement;
(3) execute grant and cooperative agreements with the Federal Transit Administration.
(Added 2011, No. 153 (Adj. Sess.), § 18, eff. May 16, 2012.)
Chapter 127 Mass Transit Authorities
Subchapter 1 Regional Transit Authorities
§ 5101 Definitions
As used in this chapter:
(1) “Municipalities” means a town, a city, or an incorporated village.
(2) “Legislative body” means the selectmen in the case of a town, the council or mayor and board of aldermen in the case of a city, and the trustees in the case of an incorporated village.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5102 Area of operation
The area of operation for an authority created under the provisions of this chapter shall be the area of the member municipalities.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5103 Membership in the authority
Two or more municipalities may form a mass transportation authority. Membership in the authority shall consist of those municipalities which elect to join the authority by majority vote of its voters present and voting on the question at an annual or special meeting duly warned for that purpose. The initial meeting of a municipality called to determine whether or not to join the authority shall be warned in the manner provided by law, except that for such meeting only, any warning need not be posted for a period in excess of 30 days, any other provision of law or municipal charter to the contrary notwithstanding. Membership may be terminated only in the manner provided in section 5109 of this title.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5104 Purposes and powers
(a) The authority may purchase, own, operate, or provide for the operation of land transportation facilities, and may contract for transit services, conduct studies, and contract with other governmental agencies, private companies, and individuals.
(b) The authority shall be a body politic and corporate with the powers incident to a municipal corporation under the laws of the State of Vermont consistent with the purposes of the authority, and may exercise all powers necessary, appurtenant, convenient, or incidental to the carrying out of its functions, including the following:
(1) to sue and be sued;
(2) to adopt, use, and alter at will a corporate seal;
(3) to acquire, purchase, hold, lease as a lessee, and use any franchise, property, real, personal, or mixed, tangible or intangible, or any interest therein, necessary or desirable for carrying out the purposes of the authority, and to sell, lease as lessor, transfer, or dispose of any property or interest acquired by it;
(4) to fix, alter, charge, and establish rates, fares, and other charges for the services and facilities within its area of operation, which rates, fees, and charges shall be equitable and just;
(5) to acquire and operate, or provide for the operation of local transportation systems, public or private, within its area of operation;
(6) to make contracts of every name and nature and to execute all instruments necessary or convenient for the carrying on of its business;
(7) to enter into management contracts with any person or persons for the management of a public transportation system or controlled by the authority for such period or periods of time, and under such compensation and other terms and conditions as shall be deemed advisable by the authority;
(8) to accept gifts or grants or loans of money or other property, and to enter into contracts, leases, or other transactions with any federal agency, the State, any agency of the State, or with any other public body of the State, including municipalities, school districts, and other authorities;
(9) to borrow money and issue evidence of indebtedness as provided by chapter 53 of this title;
(10) to develop transportation plans, and to coordinate its planning and programs with those of appropriate municipal, county, and State agencies and other political subdivisions of the State;
(11) within its area of operation, to acquire by the exercise of the power of eminent domain any real property which it may have found necessary for its purposes, in the manner provided for the condemnation of land or rights therein as set forth in 19 V.S.A. §§ 500-514 and 519;
(12) to adopt necessary rules;
(13) to do all things necessary or convenient for the conduct of its business and the general welfare of the authority in order to carry out the powers granted to it by this chapter or any other law;
(14) to enter into joint compacts with transportation authorities of other states provided that the compact has been approved by the general assembly of that state and the Congress of the United States.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976; amended 2011, No. 126 (Adj. Sess.), § 8; 2015, No. 23, § 125.)
§ 5105 Grand list; debt limit
The grand list of the authority shall be deemed to be the total of the grand lists of member municipalities, and the debt limit of the authority shall not be diminished by any obligation incurred by a member municipality alone. Obligations incurred under chapter 53 of this title shall be the joint and several obligations of the authority and of each member municipality but shall not affect any limitation on indebtedness of a member municipality. The cost of debt service shall be included in the annual budget of the authority as provided in section 4866 of this title, and shall be allocated among the member municipalities as provided in that section. Where voter approval is required pursuant to chapter 53 of this title, the board of commissioners shall determine the number and location of polling places, and when a majority of all the voters present and voting on the question from all of the member municipalities at the meeting vote to authorize the issuance of bonds, the board of commissioners shall be authorized to issue the bonds as provided in chapter 53 of this title. The counting of ballots shall be conducted by the board of commissioners together with the town or city clerk from each member municipality or his or her designee.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5106 Exemption from regulation
The public transportation systems and facilities operating under this authority are exempt from any of the regulatory provisions of Title 30, except that the Public Utility Commission may impose any regulatory provisions of Title 30 that it may determine from time to time to be necessary.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5107 Government and organization
(a) The powers, duties, and responsibilities of the authority shall be exercised by a board of commissioners, consisting of two commissioners from each member municipality. The commissioners shall be appointed by and serve at the pleasure of the legislative body of the member municipality for terms of three years. Any vacancies on the board of commissioners shall be filled by the legislative body of the respective member municipality, but in the event that the legislative body fails to appoint a commissioner within two months from the date of the occurrence of the vacancy, the vacancy shall be filled by the board of commissioners. Commissioners shall serve without pay.
(b) Annually, the board of commissioners shall elect from among its members a chair, vice chair, treasurer, and secretary, and such other officers that are necessary for the conduct of its business.
(c) The board of commissioners may appoint a transit director, and such other personnel as is necessary for the conduct of the business of the authority. The board of commissioners shall have the power to prescribe their duties, fix their compensation, and delegate to them such responsibilities for the management and control of the operation of the authority, as its interest may require.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5108 Annual budget and assessments
(a) On or before February 15 in each year the board of commissioners shall prepare a budget for the authority for the next fiscal year, which shall include an estimate of the revenue of the Authority from fares and other sources, except membership assessments, and the expenses for the next fiscal year, including debt service. The board of commissioners shall call a meeting of the residents of its member municipalities for the purpose of presenting the proposed budget. The meeting shall be held at a place within the area of operation and shall be warned by a notice published in a newspaper of general circulation in the area of operation at least 15 days prior to the meeting, which notice shall contain a copy of the proposed budget. Members of the legislative body of each member municipality shall be notified of the meeting by certified mail.
(b) Annually, following the meeting provided in subsection (a) of this section, the board of commissioners shall review the proposed budget of the authority in light of any discussion, and shall then adopt the budget with or without changes.
(c) The treasurer of the authority, following adoption of the budget, shall apportion the sums required to be contributed by each member municipality according to the average number of weekly miles of service for the 12 month period preceding the adoption of the budget, for each member community, as compared to the average number of weekly miles of service for all member communities for the same period. The formula for apportionment may be changed by the board of commissioners with the concurrence of each of the legislative bodies of the member municipalities. The treasurer of the authority shall immediately notify the treasurer of each member municipality and the chair of the legislative body in each member municipality, of the amount of such assessment, and the member municipality shall add such assessment to its own budget and shall assess such tax as is necessary to raise the amount of the assessment. The amount of the assessment in each member municipality shall be paid to the treasurer of the authority on or before July 15 in each year.
(d) In the event that the budget of the authority in any year becomes insufficient to support the operations of the authority, the board of commissioners may assess the member municipalities for additional sums, apportioned in the manner provided in this section. The additional assessment shall require the approval of each of the legislative bodies of the member municipalities.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5109 Termination of membership
(a) A member municipality may withdraw from membership in the authority, if notification of withdrawal is given more than one year after the member municipality joined such authority. The withdrawal shall take effect at the end of the first full fiscal year following a notification of withdrawal. The notification shall be in the form of a resolution duly adopted by the legislative body of the withdrawing member and delivered to the board of commissioners at a regular meeting.
(b) Notwithstanding subsection (a) of this section, upon giving notice as required by subsection (a), a member municipality may withdraw from the authority after the authority has voted to bond itself in accordance with the provisions of chapter 53 of this title, but shall continue to be liable for its share of all existing indebtedness incurred under chapter 53 of this title at the time notice of its withdrawal is given.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
§ 5110 Miscellaneous provisions
(a) The authority shall prepare an annual report of its activities, including a financial statement, and submit the report to the legislative bodies of the member municipalities.
(b) The fiscal year of the authority shall commence July 1 in each year.
(Added 1975, No. 153 (Adj. Sess.), § 1, eff. March 10, 1976.)
Subchapter 2 Regional Transit Districts
§ 5121 Definitions
As used in this subchapter:
(1) “Municipality” means a town, city, or incorporated village.
(2) “Legislative body” means the selectboard in the case of a town, the council or mayor and board of aldermen in the case of a city, and the trustees in the case of an incorporated village.
(Added 1981, No. 195 (Adj. Sess.), § 1.)
§ 5122 Creation of regional transit districts
A regional transit district may be created at any time by the act of the voters of each of two or more municipalities upon the written approval of the Agency of Transportation. Approval shall be based upon the results of studies carried out by the Agency of Transportation and by representatives of the municipalities to determine whether the municipalities involved constitute a reasonable transit district. Evidence shall be shown that funding will be adequate to provide a continuing transit program.
(Added 1981, No. 195 (Adj. Sess.), § 1; amended 1995, No. 60, § 27, eff. April 25, 1995.)
§ 5123 Regional transit district membership
A regional transit district shall contain at least one representative appointed from each member municipality. All representatives may be compensated and reimbursed by their respective municipalities for necessary and reasonable expenses.
(Added 1981, No. 195 (Adj. Sess.), § 1.)
§ 5124 Annual budget and assessments
(a) Representatives to a regional transit district representing each participating municipality shall be appointed and any vacancy filled by the legislative body of such municipality.
(b) A regional transit district shall elect a chair and a secretary, and, at its organization meeting, shall by a two-thirds vote of those representatives present and voting at the meeting, adopt such rules and create and fill such offices as it deems necessary or appropriate for the performance of its functions, including, without limitation, the number and qualification of members, terms of office, provisions for municipal representation and voting, and provisions for termination of membership.
(c) A regional transit district may also have other members, who may be elected or appointed in the manner the regional transit district prescribes by rule.
(Added 1981, No. 195 (Adj. Sess.), § 1.)
§ 5125 Purposes and powers
(a) The district may purchase, own, operate, or provide for the operation of land transportation facilities, and may contract for transit services, conduct studies, and contract with other governmental agencies, private companies, and individuals.
(b) The district may exercise all powers necessary, appurtenant, convenient, or incidental to the carrying out of its functions, including the following:
(1) to sue and be sued;
(2) to acquire, purchase, hold, lease as a lessee, and use any franchise, property, real, personal, or mixed, tangible or intangible, or any interest therein, necessary or desirable for carrying out the purposes of the district, and to sell, lease as lessor, transfer, or dispose of any property or interest acquired by it;
(3) to fix, alter, charge, and establish rates, fares, and other charges for the services and facilities within its area of operation, which rates, fees, and charges shall be equitable and just;
(4) to acquire and operate, or provide for the operation of local transportation systems, public or private, within its area of operation or in a municipality not already a member of a district, with which it contracts to furnish transit service;
(5) to make contracts of every name and nature and to execute all instruments necessary or convenient for the carrying on of its business;
(6) to accept gifts or grants or loans of money or other property, and to enter into contracts, leases, or other transactions with any federal agency, the State, any agency of the State, or with any other public body of the State, including municipalities and school districts;
(7) to adopt necessary rules;
(8) to do all things necessary or convenient for the conduct of its business and the general welfare of the district in order to carry out the powers granted to it by this subchapter or any other law.
(Added 1981, No. 195 (Adj. Sess.), § 1; amended 2015, No. 23, § 126.)
§ 5126 [Reserved for future use.]
§ 5127 Exemption; regulation; taxes
(a) The public transportation systems and facilities operated by a regional transit district are exempt from any of the regulatory provisions of Title 30 except that the transportation board may impose any regulatory provisions of Title 30 that it may determine from time to time to be necessary.
(b) A regional transit district and its systems and facilities shall be exempt from the sales, purchase, and use taxes and from motor vehicle registration fees except those registration fees applicable to municipalities.
(Added 1981, No. 195 (Adj. Sess.), § 1.)
§ 5128 Annual budget and assessments
(a) Each year the board of commissioners shall prepare a proposed budget for the district for the next fiscal year, which shall include an estimate of the revenue of the district from fares and other sources, except municipal contributions, and the expenses for the next fiscal year, including debt service. The proposed budget shall be sent to the legislative branch of any member municipality by certified mail. The board of commissioners may call a meeting or meetings of the residents of its member municipalities for the purpose of presenting the proposed budget. Any meeting called shall be warned by a notice published in a newspaper of general circulation in the area of operation at least seven days prior to the meeting containing the date, time and place at which the meeting is to be held and a statement of the purpose of the meeting.
(b) Annually, following the distribution provided in subsection (a), the board of commissioners shall review the proposed budget of the district in light of any discussion, and shall then adopt the budget with or without changes and determine the contributions to be requested from member municipalities.
(Added 1981, No. 195 (Adj. Sess.), § 1; amended 1983, No. 120 (Adj. Sess.).)
§ 5129 Liability of district
(a) Members of the regional transit district board shall not be held personally liable for any actions taken in their capacity as members of the board.
(b) No tort liability shall attach to individual municipal members of regional transit districts.
(c) Tort liability of the regional transit district shall be limited to $1,000,000.00 for each accident.
(Added 1981, No. 195 (Adj. Sess.), § 1.)
Chapter 129 Uniform Water and Sewer Disconnect
§ 5141 Scope
This chapter applies only to municipalities providing water or sewer services, or both, and it allows disconnection of water or sewer services, or both, as a delinquency collection procedure for water or sewer delinquencies. Disconnection of water service as a collection procedure for delinquent sewer bills is specifically allowed. This delinquency collection procedure is a separate procedure from that allowed under Title 32.
(Added 1977, No. 93; amended 1989, No. 45, § 7.)
§ 5142 Definitions
For the purpose of this chapter:
(1) “Selectboard” means the selectboard in the case of a town, the city council in the case of a city, the board of trustees in the case of an incorporated village, the prudential committee in the case of a fire district, or the board of commissioners in the case of a consolidated sewer or water district.
(2) “Disconnection” means the deliberate interruption or disconnection of water or sewer service, or both, to a ratepayer by the servicing municipality for nonpayment of water or sewer charges.
(3) “Delinquency” means failure of the ratepayer to tender payment for a valid bill or charge within 30 days of the postmark date of that bill or charge, or by a “due date” at least 30 days after mailing, which shall be clearly printed on the bill and which shall control in the absence of the postmark. A delinquency of sewer charges shall be considered a delinquency of water charges, if operated by the same municipal corporation.
(4) “Hearing officer” means a person appointed pursuant to section 5147 of this chapter to act as a fact finder and to hear and investigate evidence, and to make recommendations to the selectboard for final determination of the dispute.
(5) “Notice” means the written notice on the form prescribed in section 5144 of this chapter, sent within 40 days after delinquency and postmarked and sent not more than 20 days, nor less than 14 days prior to the disconnect of service.
(6) “Physician’s certificate” means a written statement by a duly licensed medical practitioner certifying that a ratepayer or resident within the ratepayer’s household would suffer an immediate and serious health hazard by the disconnection of the utility’s service to that household. The certificate will be considered valid and in force for 30 days, or the duration of the hazard, whichever is less.
(7) “Payment of a bill” means the receipt at the municipal office of cash, check, or money order which is subsequently honored.
(8) “Business days” means Monday through Thursday, excluding legal holidays and any other time, or the day before such time, when municipal offices are not open to the public.
(9) [Repealed.]
(10) “Credit supervisor” is any person appointed by the selectboard to perform the functions of a credit supervisor under this chapter. Notwithstanding section 1524 of this title, the municipal tax collector may be appointed, but the fees provided under Title 32 for a tax collector do not apply to the collection procedure in this chapter.
(Added 1977, No. 93; amended 1989, No. 45, § 8.)
§ 5143 Disconnection of service
(a) No municipality shall disconnect service to a ratepayer unless payment of a valid bill or charge is delinquent as defined herein, and notice of disconnection has been provided previously to the ratepayer. A copy of the notice shall be sent to the occupant of a residential dwelling that will be affected by the disconnection if the occupant is different than the ratepayer.
(b) Disconnection shall not be permitted if:
(1) The delinquent bill or charge, or aggregate delinquent bills and charges do not exceed $15.00.
(2) The delinquency is due solely to a disputed portion of a charge that is the subject of an appeal.
(3) The delinquency is due to a failure to pay a deposit, line extension, special assessment, special construction charge, or other nonrecurring charge.
(4) The disconnection would represent an immediate and serious hazard to the health of the ratepayer or a resident within the ratepayer’s household, as set forth in a physician’s certificate that is on file with the municipality. Notice by telephone or otherwise that such certificate will be forthcoming will have the effect of receipt, providing the certificate is in fact received within seven days.
(5) The ratepayer has not been given an opportunity to enter into a reasonable agreement to pay the delinquent bill or, having made such agreement, has abided by its terms.
(c) The tenant of a rental dwelling noticed for disconnection due to the delinquency of the ratepayer shall have the right to request and pay for continued service from the utility or reconnection of water and sewer service for the rental dwelling, which the utility shall provide. If any water and sewer charges or fees are included in the tenant’s rent, the tenant may deduct the cost of any water and sewer service charges or fees paid to the municipality from his or her rent pursuant to 9 V.S.A. § 4459. Under such circumstances, the utility shall not require the tenant to pay any arrearage greater than one billing cycle.
(Added 1977, No. 93; amended 1989, No. 45, § 9; 2013, No. 94 (Adj. Sess.), § 1, eff. Feb. 20, 2014.)
§ 5144 Uniform notice form
The notice form required under section 5143 of this chapter, and defined in section 5142 of this chapter, shall be clearly printed on a pink colored sheet of paper and shall be according to the following form:
Date _________________________________________
$ _________________________________________
AMOUNT IN ARREARS
Dear Customer:
According to our records, your (water) (sewer) service account is still unpaid. Please make full payment of the account or contact our office to make satisfactory arrangements before .......... . If this is not done, we will no longer be able to extend credit and will have to discontinue your service, on that day or any one of the following four business days. (Under the law, “Business days” means Monday through Thursday, excluding legal holidays, when the offices are not open to the public). An unpaid bill is a lien on your real property, and may lead to tax sale proceedings.
SPECIAL CHARGES—24 V.S.A. § 5151 provides that we charge a fee for coming to your location to collect the amount overdue. Also, the same statute provides that we shall charge a reconnection fee for restoration of service if your service has been disconnected for nonpayment. These fees are as follows:
Collection Trips—$ 25.00, regardless of number
Reconnection—Normal Hours—$ 25.00
Overtime—$ 37.50
Interest according to 32 V.S.A. § 5136(a)
If payment has already been sent, we recommend that you contact our office to make certain that payment is recorded on your account by the indicated date as such payment may have become delayed or lost in the mail. Payment in the mail does not constitute payment until received by us.
THIS IS A FINAL REQUEST FROM:
(Name of Credit Supervisor)
(Name of Municipality)
(Address of Municipality)
(Town)
Vermont (Zip Code)
(Telephone Number)
OTHER IMPORTANT INFORMATION—If you have a question concerning this bill or if you want to seek an agreement with us to pay the balance due in partial payments over a period of time, you should contact this office as soon as possible after receipt of this notice. In the event an agreement is entered into, failure to abide by the terms of agreement can lead to disconnection without further notice. If disconnection would result in an immediate and serious health hazard to you or to a resident within your household, disconnection will be postponed upon presentation of a duly licensed physician’s certificate.
APPEALS—If you cannot reach agreement as to payment of this bill with the credit supervisor whose name appears above, you may appeal to:
(Name of Chairman of the Local Legislative Body)
(Name of Town, City or Village)
(Address of Office)
(Mailing Address)
or by calling:
(Telephone Number)
An appeal cannot be taken unless you first attempt to settle with the credit supervisor. You may appeal only as to the proper amount of your bill or the correctness of application of the rules and regulations. You may not appeal as to the level or design of the rates themselves. No charge shall be made for the appeal. However, undisputed portions of the charges giving rise to this notice must be paid before the disconnection date given above.
ABATEMENT AND POSSIBLE REDUCTION IN CHARGES––You may be able to receive a reduction of charges, penalties, or interest through municipal abatement. To seek this reduction in charges from the Board of Abatement, contact the municipal clerk by mail, phone, or email:
(Name of Chairman of the Local Legislative Body)
(Name of Town, City or Village)
(Address of Office)
(Mailing Address)
or by calling:
(Telephone Number)
or by emailing:
(Email Address)
(Added 1977, No. 93; amended 1987, No. 33, § 1; 1989, No. 45, § 10; 2023, No. 106 (Adj. Sess.), § 2, eff. May 13, 2024.)
§ 5145 Time and notice of disconnection
(a) Disconnection of utility service shall occur only between the hours of 8:00 a.m. and 2:00 p.m. of the business day specified on the notice of disconnection, or within the same hours during the four business days thereafter.
(b) When service is disconnected or interrupted at the premises of the ratepayer, which shall include disconnection or interruption at or near the premises of the ratepayer, the individual making the disconnection shall immediately inform a responsible adult on the premises that service has been disconnected or interrupted, or if no responsible adult is then present, shall leave on the premises in a conspicuous and secure place a notification advising that service has been disconnected or interrupted and what the ratepayer has to do to have service restored.
(Added 1977, No. 93.)
§ 5146 Restoration of service
If service has been disconnected or interrupted, the municipality shall within 24 hours restore service upon the customer’s request when the cause for disconnection of service has been removed or when an agreement has been reached between the ratepayer and the municipality regarding the dispute that led to the disconnection or when directed to do so by the selectboard. Restoration of service, to the extent feasible, shall be done so as to avoid charging ratepayers for overtime wages and other abnormal expenses. No collection or reconnection fees may be charged for disconnections or interruptions of service made for reasons of health or safety of the ratepayer or of the general public.
(Added 1977, No. 93; amended 1989, No. 45, § 11.)
§ 5147 Jurisdiction for appeals and exceptions
The selectboard shall promptly and fairly hear any or all appeals by the ratepayer after notice to all interested parties. During appeal, disconnection will be postponed. Upon just cause shown, the selectboard may grant exceptions to any ratepayer. The selectboard may appoint one or more members of the selectboard to act as hearing officers for the purposes of the appeal. Alternatively, the selectboard may appoint a responsible citizen to act as a hearing officer for the appeal.
(Added 1977, No. 93.)
§ 5148 Consumer provisions
Nothing in this chapter shall prevent the selectboard from adopting further procedures, ordinances, or rules providing greater protection for consumers than are required by this chapter.
(Added 1977, No. 93.)
§ 5149 Repealed
[Repealed]
1989, No. 45, § 12.
§ 5150 Unauthorized connection
The officers and agents of such a municipality entrusted with the care and superintendence of the municipality may at all reasonable times enter all premises so supplied to examine the pipes and fixtures and prevent any unnecessary waste, and to examine for sanitary correction thereto. If any person, without the consent of such municipal corporation, shall use any connection to water or sewer, a civil action on this statute may be maintained against such person by such municipality for the recovery of damages thereon.
(Added 1977, No. 93; amended 1989, No. 45, § 13.)
§ 5151 Special charges
(a) A municipality providing water and sewer services may charge fees for collection of overdue accounts and reconnection of service disconnected because of nonpayment.
(b) Fees charged shall not exceed the following schedule:
| Collection Trips—$25.00 maximum, regardless of number | | --- | | Reconnection: | | Normal Hours—$25.00 | | Overtime—$37.50 |
(c) Interest on delinquent accounts may be assessed if voted by the municipality according to 32 V.S.A. § 5136.
(Added 1977, No. 93; amended 1987, No. 33, § 2; 1989, No. 45, § 14.)
§ 5152 Disconnections prohibited; state of emergency
(a) Notwithstanding this chapter or any provision of law to the contrary, a municipality; a person who is permitted as a public water system pursuant to 10 V.S.A. chapter 56 and who provides another person water as a part of the operation of that public water system; or a company engaged in the collecting, sale, and distribution of water for domestic, industrial, business, or fire protection purposes that is regulated by the Public Utility Commission under 30 V.S.A. § 203(3) shall be prohibited from disconnecting any person from services during a declared state of emergency under 20 V.S.A. chapter 1, provided that:
(1) the state of emergency is declared in response to an all-hazards event that will cause financial hardship and the inability of ratepayers to pay for water or sewer services; and
(2) the all-hazards event does not require the water or sewer service provider to disconnect services to protect the health and safety of the public.
(b) A person or company that is subject to subsection (a) of this section may temporarily disconnect water or sewer services during the declared state of emergency when the temporary disconnection is necessary for the maintenance or repair of the water or sewer system.
(c)(1) A violation of subsection (a) of this section by a municipality or a person who is permitted as a public water system pursuant to 10 V.S.A. chapter 56 may be enforced by the Agency of Natural Resources pursuant to 10 V.S.A. chapter 201.
(2) A violation of subsection (a) of this section by a company engaged in the collecting, sale, and distribution of water for domestic, industrial, business, or fire protection purposes that is regulated by the Public Utility Commission under 30 V.S.A. § 203(3) may be enforced by the Public Utility Commission pursuant to 30 V.S.A. § 30.
(d) A ratepayer shall remain obligated for any amounts due to a water or sewer service provider subject to this section. The ratepayer shall have a minimum of 90 days after the end of the declared state of emergency to pay the amounts due.
(Added 2021, No. 157 (Adj. Sess.), § 11, eff. July 1, 2022.)
Chapter 131 Impact Fees
§ 5200 Purpose
It is the intent of this chapter to enable municipalities to require the beneficiaries of new development to pay their proportionate share of the cost of municipal and school capital projects that benefit them and to require them to pay for or mitigate the negative effects of construction.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
§ 5201 Definitions
As used in this chapter:
(1) “Municipality” means a town, a city, or an incorporated village or an unorganized town or gore.
(2) “Capital project” means:
(A) any physical betterment or improvement including furnishings, machinery, apparatus, or equipment for such physical betterment or improvement;
(B) any preliminary studies and surveys relating to any physical betterment or improvement;
(C) land or rights in land; or
(D) any combination of these.
(3) “Impact fee” means a fee levied as a condition of issuance of a zoning or subdivision permit that will be used to cover any portion of the costs of an existing or planned capital project that will benefit or is attributable to the users of the development or to compensate the municipality for any expenses it incurs as a result of construction. The fee may be levied for recoupment of costs for previously expended capital outlay for a capital project that will benefit the users of the development.
(4) “Offsite mitigation” means permanent protection of land not necessarily adjacent to the development site and which compensates for the impact of the development.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
§ 5202 Authorization
(a) A municipality may levy an impact fee in accordance with this chapter.
(b) A municipality may accept offsite mitigation in lieu of an impact fee or as compensation for damage to important land such as prime agricultural land or important wildlife habitat.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
§ 5203 Procedure
(a) A municipality may levy an impact fee on any new development within its borders provided that it has:
(1) been confirmed under section 4350 of this title and, after July 1, 1992, adopted a capital budget and program pursuant to chapter 117 of this title. The plan or capital budget and program may include:
(A) indication of locations proposed for development with a potential to create the need for new capital projects;
(B) standards for level of service for the capital projects to be fully or partially funded with impact fees;
(C) proposed locations and project lists, cost estimates, and funding sources;
(D) timing or sequence of development in the identified locations; and
(2) developed a reasonable formula that will be used to assess a developer’s impact fee. The formula shall reflect the level of service for the capital project to be funded and a means of assessing the impact associated with the development such as square footage or number of bedrooms. The level of service shall be either:
(A) an existing level of service;
(B) a State or federal standard; or
(C) a standard adopted as part of a town plan or capital budget.
(b) The amount of an impact fee used to fund a capital project shall be determined according to a formula developed under subsection (a) of this section. The fee shall be equal to or less than the portion of the capital cost of a capital project that will benefit or is attributable to the development and shall not include costs attributable to the operation, administration, or maintenance of a capital project. The municipality may require a fee for the entire cost of a capital project that will initially be used only by the beneficiaries of the development so assessed. In this case, if the project will be used by beneficiaries of future development the municipality shall establish a formula consistent with the formula developed under subsection (a) of this section to require that beneficiaries of future development pay an impact fee to the owners of the development on which the impact fee has already been levied.
(c) In determining the amount of a fee that will be used to fund a capital project, the municipality may account for:
(1) the cost of the existing or proposed facility;
(2) the means, including State or federal grants and fees paid by other developers, by which the facility has been or will be financed;
(3) the extent, if any, to which impact fees should be offset to account for other taxes or fees paid by the developer that will cover the cost of the capital project;
(4) extraordinary costs incurred by the municipality in serving the new development;
(5) the time-price differential inherent in fair comparisons of amounts paid at different times.
(d) In determining the amount of the impact fee to compensate the municipality for expenses incurred as a result of construction, the municipality shall project the expenses that will be incurred. If the actual expense incurred is less than the fee collected from the developer, the municipality shall refund the unexpended portion of the fee within one year of the termination of construction of the project.
(e) The municipality shall provide an annual accounting for each impact fee showing the source, amount of each fee collected, and project that was funded with the fee. The municipality must spend the fee on the capital project, for which the fee was intended, within six years of when the fee was paid. If it fails to do this, the owner of the property at the expiration of the six-year period may apply for and receive a refund of his or her proportionate share of that fee during the year following the date on which the right to claim the refund began.
(f) The municipality shall establish the formula and procedure for levying an impact fee by an ordinance or bylaw adopted under chapter 59 or 117 of this title. Such ordinance or bylaw shall include a provision for administrative appeal of the impact fee assessed.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989; amended 1989, No. 106; 1989, No. 280 (Adj. Sess.), § 11c.)
§ 5204 Payment of fees
(a) An impact fee or obligation for offsite mitigation shall be a lien upon all property and improvements within land development for which the fee is assessed in the same manner and to the same effect as taxes are a lien upon real estate under section 32 V.S.A. § 5061.
(b) A municipality may require payment of an impact fee or accept offsite mitigation before issuance of a zoning or subdivision permit.
(c) A municipality may accept fees on installment at a reasonable rate of interest.
(d) A municipality may require a letter of credit to guarantee future payment of an impact fee or offsite mitigation.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
§ 5205 Exemptions
A municipality may exempt certain types of development from any part or all of the impact fee assessed, provided that the exemption achieves other policies or objectives clearly stated in the municipal plan. The policies or objectives may include, but are not limited to, the provision of affordable housing and the retention of existing employment, or the generation of new employment.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
§ 5206 Construction of chapter
Nothing in this chapter shall be construed as prohibiting a municipality from adopting ordinances otherwise authorized by law.
(Added 1987, No. 200 (Adj. Sess.), § 37, eff. July 1, 1989.)
Chapter 133 Vermont Independent School Finance Authority
§§ 5251-5298 Repealed
[Repealed]
2009, No. 135 (Adj. Sess.), § 26(11)(A), eff. May, 29, 2010.
Chapter 135 Vermont Municipal Land Records Commission
§§ 5401-5403 Repealed
[Repealed]
2009, No. 91 (Adj. Sess.), § 11, eff. May 6, 2010; 2009, No. 135 (Adj. Sess.), § 26(11)(B).
Chapter 137 Building Communities Grants
§ 5601 Building communities grants
(a) The purpose of this chapter is to establish one-for-one matching grants to help communities, nonprofit organizations, or, as applicable under section 5603 of this chapter, barn owners preserve important historic buildings and enhance community facilities. Therefore, in order to make it easy for communities, nonprofit organizations, or barn owners to apply, the entity which administers a grant program under this chapter shall work with other administrators of building communities grants to develop a standard application form which:
(1) describes the application process and includes clear instructions and examples to help applicants complete the form;
(2) includes an opportunity for a community, nonprofit organization, or barn owner to demonstrate its ability to generate one-for-one matching funds from local fundraising or other efforts;
(3) includes a summary of each of the other grants, their deadlines, and a statement that no community, nonprofit organization, or barn owner shall apply for more than one grant under this chapter for the same project in the same calendar year; and
(4) may include supplements specific to an individual grant.
(b) Each entity which administers a grants program under this chapter shall establish a selection process which ensures equitable selection of grant recipients and ensures accountability by grant recipients.
(c) Before it notifies an applicant of an award under this chapter, the entity which administers the grant shall provide notice of the award and time and location of any award presentation to the Chairs of the Senate Committee on Institutions and the House Committee on Corrections and Institutions, and those members of the General Assembly who represent the area in which a successful applicant resides.
(d) Notwithstanding 32 V.S.A. § 701a, if, after an entity awards grant funds under this chapter, the funds remain unexpended and not subject to a grant agreement, the entity may reallocate the unexpended funds within its grant program within three years of the original award date. Any unexpended funds remaining after this three-year period that are not subject to a grant agreement shall be reallocated in future acts relating to capital construction and State bonding.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29, eff. June 4, 2010; 2011, No. 104 (Adj. Sess.), § 28, eff. May 7, 2012.)
§ 5602 Historic Preservation Grant Program
There is established an Historic Preservation Grant Program which shall be administered by the Division for Historic Preservation in the Agency of Commerce and Community Development. Grants shall be made available to municipalities and nonprofit tax-exempt organizations for restoring buildings and structures.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29.)
§ 5603 Historic Barns Preservation Grant Program
There is established an Historic Barns Preservation Grant Program which shall be administered by the Division for Historic Preservation in the Agency of Commerce and Community Development. Grants shall be made available to barn owners for restoring historic barns.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29, eff. June 4, 2010.)
§ 5604 Cultural Facilities Grant Program
(a) There is established a Cultural Facilities Competitive Grant Program to be administered by the Vermont Arts Council. No portion of a grant shall be used to pay salaries.
(b) Grants shall be awarded on a competitive basis. In recommending grant awards, a review panel shall give priority consideration to applicants who demonstrate greater financial need or are in underserved areas of the State.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29, eff. June 4, 2010.)
§ 5605 Recreational Facilities Grant Program
(a) Creation of Program. There is created a Recreational Facilities Grant Program to be the successor to and a continuation of the Recreational and Educational Facilities Grant Program established in 2005 Acts and Resolves No. 43, Sec. 34 to provide competitive grants to municipalities as defined in chapter 117 of this title and to nonprofit organizations for capital costs associated with the development and creation of community recreational opportunities in Vermont communities. The Program is authorized to award matching grants of up to $25,000.00 per project. The required match shall be met through dollars raised and not through in-kind services.
(b) Creation of Committee. There is established a Recreational Facilities Grant Advisory Committee to coordinate and administer the Recreational Facilities Grant Program. The Committee shall include the Commissioners of Forests, Parks and Recreation and of Buildings and General Services or the Commissioners’ designees; a representative of the Vermont Recreation and Parks Association; two members of the Vermont General Assembly, one appointed by the Speaker of the House of Representatives and one appointed by the Senate Committee on Committees; a representative of the Vermont Trails and Greenways Council; and one citizen member to be appointed by the Governor. The members of the Committee shall select a chair. The citizen member shall serve for a term of two years or until his or her successor is appointed.
(c) Administrative support. The Department of Buildings and General Services shall provide administrative support to the Program.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29, eff. June 4, 2010; 2017, No. 74, § 110.)
§ 5606 Human Services and Educational Facilities Competitive Grant Program
(a) Creation of Program. There is created a Human Services and Educational Facilities Competitive Grant Program to be the successor to and a continuation of the Human Services Competitive Grant Program established in 2005 Acts and Resolves No. 43, Sec. 36 to provide competitive grants to municipalities as defined in chapter 117 of this title and to nonprofit organizations for capital costs associated with the major maintenance, renovation, or development of facilities for the delivery of human services and health care or for the development of educational opportunities in Vermont communities. The Program is authorized to award matching grants of up to $25,000.00 per project. The required match shall be met through dollars raised and not through in-kind services.
(b) Creation of Committee. There is established a Human Services and Educational Facilities Grant Advisory Committee to administer and coordinate the Human Services and Educational Facilities Grant Program. The Committee shall include the Secretary of Human Services or the Secretary’s designee; the Commissioner of Buildings and General Services or the Commissioner’s designee; two members of the Vermont General Assembly, one appointed by the Speaker of the House of Representatives and one appointed by the Senate Committee on Committees; and three representatives of broad-based community organizations, such as the United Way of Vermont, who shall be selected and appointed by the Governor. The members of the Committee shall select a chair. The members appointed by the Governor shall serve for terms of two years or until their successors are appointed.
(c) Administrative support. The Department of Buildings and General Services shall provide administrative support to the Program.
(Added 2007, No. 200 (Adj. Sess.), § 41, eff. June 9, 2008; amended 2009, No. 161 (Adj. Sess.), § 29, eff. June 4, 2010; 2017, No. 74, § 111.)
§ 5607 Regional Economic Development Grant Program
(a) Creation of Program. There is created a Regional Economic Development Grant Program to provide competitive grants for capital costs associated with the major maintenance, renovation, or planning related to the development of facilities reasonably expected to create job opportunities in Vermont communities. The Program is authorized to award matching grants of up to $25,000.00 per project. The required match shall be met through dollars raised and not through in-kind services. State investments made under this Program shall be consistent with the goals found in section 4302 of this title and local and regional plans adopted pursuant to this title and shall be coordinated with the efforts described in chapter 76A of this title.
(b) Creation of Committee. There is established a Regional Economic Development Grant Advisory Committee to administer and coordinate the Regional Economic Development Grant Program. The Committee shall include the Commissioner of Economic, Housing and Community Affairs or designee; the Commissioner of Buildings and General Services or designee; and two members of the Vermont General Assembly, one appointed by the Speaker of the House of Representatives and one appointed by the Senate Committee on Committees. The members of the Committee shall select a chair.
(Added 2011, No. 104 (Adj. Sess.), § 27a, eff. May 7, 2012; amended 2013, No. 34, § 16.)
§ 5608 Agricultural Fairs and Field Days Capital Projects Competitive Grants Program
(a) Grant guidelines. The following guidelines shall apply to capital grants made for Vermont agricultural fairs and field days projects pursuant to this section:
(1) Grants shall be competitively awarded to capital projects that relate to Vermont agricultural fairs and field days operating a minimum of three consecutive, eight-hour days per year.
(2) A project for which a grant is awarded shall have a minimum useful life of 20 years and shall be completed within two years of the execution of a contract to perform work authorized by the grant.
(3) A grant recipient shall contribute matching funds or in-kind services in an amount equal to 15 percent or more of the value of the grant.
(b) There is established an Agricultural Fairs and Field Days Capital Program Advisory Committee to administer and coordinate grants made pursuant to this section. The Committee shall include:
(1) two members appointed by the Secretary of Agriculture, Food and Markets;
(2) one member appointed by the Commissioner of Forests, Parks and Recreation;
(3) two members appointed by the Vermont Fair and Field Days Association;
(4) one member appointed by the Vermont Department of Tourism and Marketing;
(5) one member of the Vermont Senate appointed by the Committee on Committees; and
(6) one member of the Vermont House of Representatives appointed by the Speaker of the House.
(c) Administration.
(1) The Advisory Committee created in subsection (b) of this section shall have the authority to award grants in its sole discretion; provided, however, that the Committee may consider whether to award partial awards to all applicants that meet Program criteria established by the Committee.
(2) The Agency of Agriculture, Food and Markets shall provide administrative and technical support to the Committee for purposes of administering grants awarded under this section.
(Added 2013, No. 178 (Adj. Sess.), § 32, June 9, 2014.)
§ 5609 Repealed
[Repealed]
2015, No. 160 (Adj. Sess.), § 36a, eff. July 1, 2018.
Chapter 138 Rural Economic Development Infrastructure Districts
§ 5701 Purpose
The purpose of this chapter is to enable formation of special municipal districts to finance, own, and maintain infrastructure that provides economic development opportunities in rural and underresourced areas of the State, including areas within one or more municipalities. Specifically, this chapter provides mechanisms for public and private partnerships, including opportunities for tax-incentivized financing and voluntary citizen engagement, to help overcome density and economic hardship.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5702 Establishment; general provisions
(a) Establishment. Upon written application by 20 or more voters within a proposed district or upon its own motion, the legislative body of a municipality may establish a rural economic development infrastructure district. The application shall describe the infrastructure to be built or acquired; the plan for financing its acquisition; the anticipated economic benefit; the source of revenues for loan, bond, or lease payments; and plans for retention and disbursement of excess revenues, if any. The application also shall clearly state that the proposed district shall not have authority to levy taxes upon the grand list and may not levy service charges or fees upon any underlying municipality except for services used by such municipality, its own officers, and employees in the operation of municipal functions. Notice of establishment of a district shall be recorded as provided in subsection (e) of this section, posted in at least three public places within the municipality for at least 30 days, and published in a newspaper of general circulation within the municipality not more than 10 days from the date of establishment by the legislative body. Following 40 days from the later of the date of establishment by the legislative body of the municipality or an affirmative vote under subdivision (d)(1) or (2) of this section, the district shall be deemed to be a body politic and corporate, capable of exercising those powers and prerogatives explicitly granted by the legislative body of the municipality in accordance with this chapter and the district’s establishment application.
(b) Districts involving more than one municipality. Where the limits of a proposed district include two or more municipalities, or portions of two or more municipalities, the application required by this section shall be made to and considered by the legislative body of each such municipality.
(c) Alteration of district limits. The legislative body of a municipality in which a district is located may alter the limits of a district upon application to the governing board of the district, provided the governing board gives prior written consent. A district expansion need not involve contiguous property. Notice of an alteration of the limits of a district shall be recorded as provided in subsection (e) of this section, posted in at least three public places within the municipality for at least 30 days, and published in a newspaper of general circulation within the municipality not more than 10 days from the date of the legislative body’s decision to alter the limits of a district.
(d) Contestability.
(1) If a petition signed by five percent of the voters of the municipality objecting to the proposed establishment or alteration of limits of a district is presented to the municipal clerk within 30 days of the date of posting and publication of the notice required by subsection (a) or (c) of this section, as applicable, the legislative body of the municipality shall cause the question of whether the municipality shall establish or alter the limits of the district to be considered at a meeting called for that purpose. The district shall be established in accordance with the application or the limits altered unless a majority of the voters of the municipality present and voting votes to disapprove such establishment or alteration of limits.
(2) If a petition signed by five percent of the voters of the municipality objecting to a legislative body’s decision denying the establishment or the alteration of limits of a district is presented to the municipal clerk within 30 days of the legislative body’s decision, the legislative body shall cause the question of whether the municipality shall establish or alter the limits of the district to be considered at an annual or special meeting called for that purpose.
(e) Recording. A record of the establishment of a district and any alteration of district limits made by a legislative body shall be filed with the clerk of each municipality in which the district is located, and shall be recorded with the Secretary of State.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5703 Limitations; taxes; indebtedness; eminent domain
Notwithstanding any grant of authority in this chapter to the contrary:
(1) A district shall not accept funds generated by the taxing or assessment power of any municipality in which it is located.
(2) A district shall not have the power to levy, assess, apportion, or collect any tax upon property within the district, nor upon any of its underlying municipalities, without specific authorization of the General Assembly.
(3) All obligations of the district, including financing leases, shall be secured by and payable only out of the assets of or revenues or monies in the district, including revenue generated by an enterprise owned or operated by the district.
(4) A district shall not have powers of eminent domain.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5704 Governing board; composition; meetings; report
(a) Governing board. The legislative power and authority of a district and the administration and the general supervision of all fiscal, prudential, and governmental affairs of a district shall be vested in a governing board, except as otherwise specifically provided in this chapter.
(b) Composition. The governing board of the district shall consist of members appointed in equal numbers by the legislative bodies of the underlying municipalities. The board shall draft the district’s bylaws specifying the size, composition, quorum requirements, and manner of appointing and removing members to the board, including nonvoting, at-large board members. The bylaws shall require that the legislative bodies of the underlying municipalities appoint board members and fill board member vacancies. Board members appointed by the underlying municipalities may appoint additional, nonvoting, at-large board members and fill at-large board member vacancies. Board members, including at-large members, are not required to be residents of an underlying municipality. However, a majority of the board shall be residents of an underlying municipality. Board members shall serve staggered, three-year terms and shall be eligible to serve successive terms. At-large board members shall serve one-year terms, and shall be eligible to serve successive terms. Any bylaws developed by the governing board under this subsection shall be submitted for approval to the legislative bodies of the municipalities within the district and shall be considered duly adopted 45 days after the date of submission, provided none of the legislative bodies disapprove the bylaws.
(c) First meeting. The first meeting of the district shall be called upon 30 days’ posted and published notice by a presiding officer of a legislative body in which the district is located. The board shall elect from among its members a chair, vice chair, clerk, and treasurer. The board shall establish the fiscal year of the district and shall adopt rules of parliamentary procedure. Prior to assuming their offices, officers may be required to post bond in such amounts as determined by resolution of the board. The cost of such bond shall be borne by the district.
(d) Annual and special meetings. Unless otherwise established by the voters, the annual district meeting shall be held on the second Monday in January and shall be warned by the clerk or, in the clerk’s absence or neglect, by a member of the board. Special meetings shall be warned in the same manner on application in writing by five percent of the voters of the district. A warning for a district meeting shall state the business to be transacted. The time and place of holding the meeting shall be posted in two or more public places in the district not more than 40 days nor less than 30 days before the meeting and recorded in the office of the clerk before the same is posted.
(e) Annual report. The district shall report annually to the legislative bodies and the citizens of the municipalities in which the district is located on the results of its activities in support of economic growth, job creation, improved community efficiency, and any other benefits incident to its activities.
(f) Definition. For purposes of this section and section 5709 of this chapter, after a district has been established pursuant to section 5702 of this chapter, “voter” means a board member or subscriber or customer of a service provided by the district. “Voter” does not mean an at-large board member unless the vote is taken at an annual or special meeting and the at-large board member is a subscriber or customer of a service provided by the district.
(Added 2017, No. 69, § B.1, eff. June 28, 2017; amended 2017, No. 197 (Adj. Sess.), § 22.)
§ 5705 Officers
(a) Generally. The board shall elect at its first meeting and at each annual meeting thereafter a chair, vice chair, clerk, and treasurer, who shall hold office until the next annual meeting and until others are elected. The board may fill a vacancy in any office.
(b) Chair. The chair shall preside at all meetings of the board and make and sign all contracts on behalf of the district upon approval by the board. The chair shall perform all duties incident to the position and office as required by the general laws of the State.
(c) Vice chair. During the absence of or inability of the chair to render or perform his or her duties or exercise his or her powers, the same shall be performed and exercised by the vice chair, and when so acting, the vice chair shall have all the powers and be subject to all the responsibilities given to or imposed upon the chair. During the absence or inability of the vice chair to render or perform his or her duties or exercise his or her powers, the board shall elect from among its members an acting vice chair who shall have the powers and be subject to all the responsibilities given to or imposed upon the vice chair.
(d) Clerk. The clerk shall keep a record of the meetings, votes, and proceedings of the district for the inspection of its inhabitants.
(e) Treasurer. The treasurer of the district shall be elected by the board and shall serve at its pleasure. The treasurer shall have the exclusive charge and custody of the funds of the district and shall be the disbursing officer of the district. When warrants are authorized by the board, the treasurer may sign, make, or endorse in the name of the district all checks and orders for the payment of money and pay out and disburse the same and receipt therefor. The treasurer shall keep a record of every obligation issued and contract entered into by the district and of every payment made. The treasurer shall keep correct books of account of all the business and transactions of the district and such other books and accounts as the board may require. The treasurer shall render a statement of the condition of the finances of the district at each regular meeting of the board and at such other times as required of the treasurer. The treasurer shall prepare the annual financial statement and the budget of the district for distribution, upon approval of the board, to the legislative bodies of district members. Upon the treasurer’s termination from office by virtue of removal or resignation, the treasurer shall immediately pay over to his or her successor all of the funds belonging to the district and at the same time deliver to the successor all official books and papers.
(Added 2017, No. 69, § B.1, eff. June 28, 2017; amended 2017, No. 197 (Adj. Sess.), § 23.)
§ 5706 Audit
Once the district becomes operational, the board shall cause an audit of the financial condition of the district to be performed annually by an independent professional accounting firm. The results of the audit shall be provided to the governing board and to the legislative bodies of the municipalities in which the district is located.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5707 Committees
The board has authority to establish one or more committees and grant and delegate to them such powers as it deems necessary. Members of an executive committee shall serve staggered terms and shall be board members. Membership on other committees established by the board is not restricted to board members.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5708 District powers
A district created under this chapter has the power to:
(1) exercise independently and in concert with other municipalities any other powers which are necessary or desirable for the installation, ownership, operation, maintenance, and disposition of infrastructure promoting economic development in rural areas and matters of mutual concern and that are exercised or are capable of exercise by any of its members;
(2) enter into municipal financing agreements as provided by sections 1789 and 1821-1828 of this title, or other provisions authorizing the pledge of district assets or net revenue, or alternative means of financing capital improvements and operations;
(3) purchase, sell, lease, own, acquire, convey, mortgage, improve, and use real and personal property in connection with its purpose;
(4) enter into contracts for any term or duration;
(5) operate, cause to be operated, or contract for the construction, ownership, management, financing, and operation of an enterprise which a municipal corporation is authorized by law to undertake;
(6) hire employees and fix the compensation and terms of employment;
(7) contract with individuals, corporations, associations, authorities, and agencies for services and property, including the assumption of the liabilities and assets thereof, provided that no assumed liability shall be a general obligation of a municipality in which the district is located;
(8) contract with the State of Vermont, the United States of America, or any subdivision or agency thereof for services, assistance, and joint ventures;
(9) contract with any municipality for the services of any officers or employees of that municipality useful to it;
(10) promote cooperative arrangements and coordinated action among its members and other public and private entities;
(11) make recommendations for review and action to its members and other public agencies that perform functions within the region in which its members are located;
(12) sue and be sued; provided, however, that the property and assets of the district, other than such property as may be pledged as security for a district obligation, shall not be subject to levy, execution, or attachment;
(13) appropriate and expend monies; provided, however, that no appropriation shall be funded or made in reliance upon any taxing authority of the district;
(14) establish sinking and reserve funds for retiring and securing its obligations;
(15) establish capital reserve funds and make deposits in them;
(16) solicit, accept, and administer gifts, grants, and bequests in trust or otherwise for its purpose;
(17) enter into an interstate compact consistent with the purposes of this chapter, subject to the approval of the Vermont General Assembly and the U.S. Congress;
(18) develop a public sewer or water project, provided the legislative body and the planning commission for the municipality in which the sewer or water project is proposed to be located confirm in writing that such project conforms with any duly adopted municipal plan, and the regional planning commission confirms in writing that such project conforms with the duly adopted regional plan;
(19) exercise all powers incident to a public corporation, but only to the extent permitted in this chapter;
(20) adopt a name under which it shall be known and shall conduct business; and
(21) make, establish, alter, amend, or repeal ordinances, regulations, and bylaws relating to matters contained in this chapter and not inconsistent with law.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
§ 5709 Dissolution
(a) If the board by resolution approved by a two-thirds’ vote determines that it is in the best interests of the public, the district members, and the district that such district be dissolved, and if the district then has no outstanding obligations under pledges of district assets or revenue, long-term contracts, or contracts subject to annual appropriation, or will have no such debt or obligation upon completion of the plan of dissolution, it shall prepare a plan of dissolution and thereafter adopt a resolution directing that the question of such dissolution and the plan of dissolution be submitted to the voters of the district at a special meeting thereof duly warned for such purpose. If a majority of the voters of the district present and voting at such special meeting shall vote to dissolve the district and approve the plan of dissolution, the district shall cease to conduct its affairs except insofar as may be necessary for the winding up of them. The board shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the district and to the Secretary of State and shall proceed to collect the assets of the district and apply and distribute them in accordance with the plan of dissolution.
(b) The plan of dissolution shall:
(1) identify and value all unencumbered assets;
(2) identify and value all encumbered assets;
(3) identify all creditors and the nature or amount of all liabilities and obligations;
(4) identify all obligations under long-term contracts and contracts subject to annual appropriation;
(5) specify the means by which assets of the district shall be liquidated and all liabilities and obligations paid and discharged, or adequate provision made for the satisfaction of them;
(6) specify the means by which any assets remaining after discharge of all liabilities shall be liquidated if necessary; and
(7) specify that any assets remaining after payment of all liabilities shall be apportioned and distributed among the district members according to a formula based upon population.
(c) When the plan of dissolution has been implemented, the board shall adopt a resolution certifying that fact to the district members whereupon the district shall be terminated, and notice thereof shall be delivered to the Secretary of the Senate and the Clerk of the House of Representatives in anticipation of confirmation of dissolution by the General Assembly.
(Added 2017, No. 69, § B.1, eff. June 28, 2017.)
Chapter 139 State Community Investment Program
§ 5801 Definitions
As used in this chapter:
(1) “Community Investment Program” means the program established in this chapter, as adapted from the former State designated areas program formerly in chapter 76A of this title. Statutory references outside this chapter referring to the former State-designated downtown, village centers, and new town centers shall mean designated center, once established. Statutory references outside this chapter referring to the former State-designated neighborhood development areas and growth centers shall mean designated neighborhood, once established. The program shall extend access to benefits that sustain and revitalize existing buildings and maintain the basis of the program’s primary focus on revitalizing historic downtowns, villages and surrounding neighborhoods by promoting smart growth development patterns and historic preservation practices vital to Vermont’s economy, cultural landscape, equity of opportunity, and climate resilience.
(2) “Complete streets” or “complete street principles” has the same meaning as in 19 V.S.A. chapter 24.
(3) “Department” means the Department of Housing and Community Development.
(4) “Downtown center” or “village center” means areas on the regional plan future land use maps that may be designated as a center consistent with section 4348a of this title.
(5) “LURB” refers to the Land Use Review Board established pursuant to 10 V.S.A. § 6021.
(6) “Infill” means the use of vacant land or property or the redevelopment of existing buildings within a built-up area for further construction or land development.
(7) “Local downtown organization” means either a nonprofit corporation, or a board, council, or commission created by the legislative body of the municipality, whose primary purpose is to administer and implement the community reinvestment agreement and other matters regarding the revitalization of the downtown.
(8) “Planned growth area” means an area on the regional plan future land use maps required under section 4348a of this title, which may encompass a downtown center or village center on the regional future land use map and may be designated as a center or neighborhood, or both.
(9) “Regional plan future land use map” means the map prepared pursuant to section 4348a of this title.
(10) “Sprawl repair” means the redevelopment of lands with buildings, traffic and circulation, parking, or other land coverage in a pattern that is consistent with smart growth principles.
(11) “State Board” means the Vermont Community Investment Board established in section 5802 of this title.
(12) “State Designated Downtown and Village Center” or “center” means a contiguous downtown or village a portion of which is listed or eligible for listing in the national register of historic places area approved as part of the LURB review of regional plan future land use maps, which may include an approved preexisting designated designated downtown, village center, or designated new town center established prior to the approval of the regional plan future land use maps.
(13) “State designated neighborhood” or “neighborhood” means a contiguous geographic area approved as part of the Land Use Review Board review of regional plan future land use maps that is compact and adjacent and contiguous to a center.
(14) “Vermont Downtown Program” means a program within the Department that coordinates with Main Street America that helps support community investment and economic vitality while preserving the historic character of Vermont’s downtowns. The Vermont Downtown Program provides downtowns with financial incentives, training, and technical assistance supporting local efforts to restore historic buildings, improve housing, design walkable communities, and encourage economic development by incentivizing public and private investments.
(15) “Village area” means an area on the regional plan future land use maps adopted pursuant to section 4348a of this title, which may encompass a village center on the regional future land use map.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5802 Vermont Community Investment Board
(a) A Vermont Community Investment Board, also referred to as the “State Board,” is created to administer the provisions of this chapter. The State Board shall be composed of the following members or their designees:
(1) the Secretary of Commerce and Community Development;
(2) the Secretary of Transportation;
(3) the Secretary of Natural Resources;
(4) the Commissioner of Public Safety;
(5) the State Historic Preservation Officer;
(6) a member of the community designated by the Director of Racial Equity;
(7) a person, appointed by the Governor from a list of three names submitted by the Vermont Natural Resources Council and the Preservation Trust of Vermont;
(8) a person, appointed by the Governor from a list of three names submitted by the Vermont Association of Chamber of Commerce Executives;
(9) three public members representative of local government, one of whom shall be designated by the Vermont League of Cities and Towns and two of whom shall be appointed by the Governor;
(10) the Executive Director of the Vermont Bond Bank;
(11) the State Treasurer;
(12) a member of the Vermont Planners Association designated by the Association;
(13) a representative of a regional development corporation designated by the regional development corporations; and
(14) a representative of a regional planning commission designated by the Vermont Association of Planning and Development Agencies.
(b) The State Board shall elect a chair and vice chair from among its membership.
(c) The Department shall provide legal, staff, and administrative support to the State Board; shall produce guidelines to direct municipalities seeking to obtain designation under this chapter and for other purposes established by this chapter; and shall pay per diem compensation for board members pursuant to 32 V.S.A. § 1010(b).
(d) The State Board shall meet at least quarterly.
(e) The State Board shall have authority to adopt rules of procedure to use for appeal of its decisions and rules on handling conflicts of interest.
(f) In addition to any other duties confirmed by law, the State Board shall have the following duties:
(1) to serve as the funding and benefits coordination body for the State Community Investment Program;
(2) to review and comment on proposed regional plan future land use maps prepared by the regional planning commission and presented to the LURB for designated center and designated neighborhood recognition under 10 V.S.A. § 6033;
(3) to award tax credits under the 32 V.S.A. § 5930aa et seq.;
(4) to manage the Downtown Transportation and Related Capital Improvement Fund Program established by section 5808 of this title; and
(5) to review and comment on LURB guidelines, rules, or procedures for the regional plan future land use maps as they relate to the designations under this chapter.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5803 Designation of downtown and village centers
(a) Designation established. A regional planning commission may apply to the LURB for approval and designation of all centers by submitting the regional plan future land use map adopted by the regional planning commission. The regional plan future land use map shall identify downtown centers and village centers as the downtown and village areas eligible for designation as centers. The Department and State Board shall provide comments to the LURB on areas eligible for center designation as provided under this chapter.
(b) Inclusions. The areas mapped by the regional planning commissions as a center shall allow for the designation of preexisting, designated downtowns, village centers and new town centers in existence on or before December 31, 2025.
(c) Exclusions. With the exception for preexisting, nonconforming designations approved prior to the establishment of the program under this chapter or areas included in the municipal plan for the purposes of relocating a municipality’s center for flood resiliency purposes, the areas eligible for designation benefits upon the LURB’s approval of the regional plan future land use map for designation as a Center shall not include development that is disconnected from a Center and that lacks a pedestrian connection to the Center via a complete street.
(d) Approval. The LURB shall conduct its review pursuant to 10 V.S.A. § 6033.
(e) Transition. All designated downtowns, village centers, or new town centers existing as of December 31, 2025 will retain current benefits until December 31, 2026 or until approval of the regional future land use maps by the LURB, whichever comes first. All existing designations in effect December 31, 2025 will expire December 31, 2026 if the regional plan does not receive LURB approval under this chapter. All benefits for unexpired designated downtowns, village centers, and new town centers that are removed under this chapter shall remain in effect until July 1, 2034. Prior to June 30, 2026, no check-in or renewals shall be required for the preexisting designations. New applications for downtowns, villages, and new town centers may be approved by the State Board prior to the first public hearing on a regional future land use map or until December 31, 2025, whichever comes first.
(f) Benefits Steps. A center may receive the benefits associated with the steps in this section by meeting the established requirements. The Department shall review applications from municipalities to advance from Step One to Two and from Step Two to Three and issue written decisions. The Department shall issue a written administrative decision within 30 days following an application. If a municipal application is rejected by the Department, the municipality may appeal the administrative decision to the State Board. To maintain a downtown approved under chapter 76A after December 31, 2026, the municipality shall apply for renewal following a regional planning approval by the LURB and meet the program requirements. Step Three designations that are not approved for renewal revert to Step Two. The municipality may appeal the administrative decision of the Department to the State Board. Appeals of administrative decisions shall be heard by the State Board at the next meeting following a timely filing stating the reasons for the appeal. The State Board’s decision is final. The Department shall issue guidance to administer these steps.
(1) Step One.
(A) Requirements. Step One is established to create an accessible designation for all villages throughout the State to become eligible for funding and technical assistance to support site-based improvements and planning. All downtown and village centers shall automatically reach Step One upon approval of the regional plan future land use map by the LURB. Regional plan future land use maps supersede preexisting designated areas that may already meet the Step One requirement.
(B) Benefits. A center that reaches Step One is eligible for the following benefits:
(i) funding and technical assistance eligibility for site-based projects, including the Better Places Grant Program under section 5810 of this chapter, access to the Downtown and Village Center Tax Credit Program described in 32 V.S.A. § 5930aa et seq., and other programs identified in the Department’s guidance; and
(ii) funding priority for developing or amending the municipal plan, visioning, and assessments.
(2) Step Two.
(A) Requirements. Step Two is established to create a mid-level designation for villages throughout the State to increase planning and implementation capacity for community-scale projects. A center reaches Step Two if it:
(i) meets the requirements of Step One or if it has a designated village center or new town center under chapter 76A of this title upon initial approval of the regional plan future land use map and prior to December 31, 2026;
(ii) has a confirmed municipal planning process pursuant to 24 V.S.A. § 4350;
(iii) has a municipal plan with goals for investment in the center; and
(iv) a portion of the center is listed or eligible for listing in the National Register of Historic Places.
(B) Benefits. In addition to the benefits of Step One, a center that reaches Step Two is eligible for the following benefits:
(i) funding priority for bylaws and special-purpose plans, capital plans, and area improvement or reinvestment plans, including priority consideration for the Better Connections Program and other applicable programs identified by Department guidance;
(ii) funding priority for infrastructure project scoping, design, engineering, and construction by the State Program and State Board;
(iii) the authority to create a special taxing district pursuant to chapter 87 of this title for the purpose of financing both capital and operating costs of a project within the boundaries of a center;
(iv) priority consideration for State and federal affordable housing funding;
(v) authority for the municipal legislative body to establish speed limits of less than 25 mph within the center under 23 V.S.A. § 1007(g);
(vi) State wastewater permit fees capped at $50.00 for residential development under 3 V.S.A. § 2822;
(vii) exemption from the land gains tax under 32 V.S.A. § 10002(p); and
(viii) assistance and guidance from the Department for establishing local historic preservation regulations.
(3) Step Three.
(A) Requirements. Step Three is established to create an advanced designation for downtowns throughout the State to create mixed-use centers and join the Vermont Downtown Program. A center reaches Step Three if the Department finds that it meets the following requirements:
(i) Meets the requirements of Step Two, or if it has an existing downtown designated under chapter 76A of this title in effect upon initial approval of the regional future land use map and prior to December 31, 2026.
(ii) Is listed or eligible for listing in the National Register of Historic Places.
(iii) Has a downtown improvement plan.
(iv) Has a downtown investment agreement.
(v) Has a capital program adopted under section 4430 of this title that implements the Step Three requirements.
(vi) Has a local downtown organization with an organizational structure necessary to sustain a comprehensive long-term downtown revitalization effort, including a local downtown organization that will collaborate with municipal departments, local businesses, and local nonprofit organizations. The local downtown organization shall work to:
(I) enhance the physical appearance and livability of the area by implementing local policies that promote the use and rehabilitation of historic and existing buildings, by developing pedestrian-oriented design requirements, by encouraging new development and infill that satisfy such design requirements, and by supporting long-term planning that is consistent with the goals set forth in section 4302 of this title;
(II) build consensus and cooperation among the many groups and individuals who have a role in the planning, development, and revitalization process;
(III) market the assets of the area to customers, potential investors, new businesses, local citizens, and visitors;
(IV) strengthen, diversify, and increase the economic activity within the downtown; and
(V) measure annually progress and achievements of the revitalization efforts as required by Department guidelines.
(vii) Has available public water and wastewater service and capacity.
(viii) Has permanent zoning and subdivision bylaws.
(ix) Has adopted historic preservation regulations for the district with a demonstrated commitment to protect and enhance the historic character of the downtown through the adoption of bylaws that adequately meet the historic preservation requirements in subdivisions 4414(1)(E) and (F) of this title, unless recognized by the program as a preexisting designated new town center.
(x) Has adopted design or form-based regulations that adequately regulate the physical form and scale of development with compact lot, building, and unit density, building heights, and complete streets.
(B) Benefits. In addition to the benefits of Steps One and Two, a municipality that reaches Step Three is eligible for the following benefits:
(i) Funding for the local downtown organization and technical assistance from the Vermont Downtown Program for the center.
(ii) A reallocation of receipts related to the tax imposed on sales of construction materials as provided in 32 V.S.A. § 9819.
(iii) Eligibility to receive National Main Street Accreditation from Main Street America through the Vermont Downtown Program.
(iv) Signage options pursuant to 10 V.S.A. § 494(13) and (17).
(v) Housing appeal limitations as described in chapter 117 of this title.
(vi) Highest priority for locating proposed State functions by the Commissioner of Buildings and General Services or other State officials, in consultation with the municipality, Department, State Board, the General Assembly committees of jurisdiction for the Capital Budget, and the regional planning commission. When a downtown location is not suitable, the Commissioner shall issue written findings to the consulted parties demonstrating how the suitability of the State function to a downtown location is not feasible.
(vii) Funding for infrastructure project scoping, design, and engineering, including participation in the Downtown Transportation and Related Capital Improvement Fund Program established by section 5808 of this title.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5804 Designated neighborhood
(a) Designation established.
(1) A regional planning commission may request approval from the LURB for designation of areas on the regional plan future land use maps as a designated neighborhood under 10 V.S.A. § 6033. Areas eligible for designation include planned growth areas and village areas identified on the regional plan future land use map. This designation recognizes that the vitality of downtowns and villages is supported by adjacent and walkable neighborhoods and that the benefits structure must ensure that investments for sprawl repair or infill development within a neighborhood is secondary to a primary purpose to maintain the vitality and livability and maximize the climate resilience and infill potential of centers.
(2) Approval of planned growth areas and village areas as designated neighborhoods shall follow the same process as approval for designated centers provided for in 10 V.S.A. § 6033 and consistent with sections 4348 and 4348a of this title.
(b) Transition. All designated growth center or neighborhood development areas existing as of December 31, 2025 will retain current benefits until December 31, 2026 or upon approval of the regional plan future land use maps, whichever comes first. All existing neighborhood development area and growth center designations in effect on December 31, 2025 will expire on December 31, 2026 if the regional plan future land use map is not approved. All benefits that are removed for unexpired neighborhood development areas and growth centers under this chapter shall remain active with prior designations existing as of December 31, 2025 until December 31, 2034. Prior to December 31, 2026, no check-ins or renewal shall be required for the existing designations. New applications for neighborhood development area designations may be approved by the State Board prior to the first hearing for a regional plan adoption or until December 31, 2025, whichever comes first.
(c) Requirements. A designated neighborhood shall meet the requirements for planned growth area or village area as described in section 4348a of this title.
(d) Benefits. A designated neighborhood is eligible for the following benefits:
(1) funding priority for bylaws and special-purpose plans, capital plans, and area improvement or reinvestment plans, including priority consideration for the Better Connections Program and other applicable programs identified by Department guidance;
(2) funding priority for Better Connections and other infrastructure project scoping, design, engineering, and construction by the State Community Investment Program and Board;
(3) eligibility for the Downtown and Village Center Tax Credit Program described in 32 V.S.A. § 5930aa et seq.;
(4) priority consideration for State and federal affordable housing funding;
(5) certain housing appeal limitations under chapter 117 of this title;
(6) authority for the municipal legislative body to lower speed limits to less than 25 mph within the neighborhood;
(7) State wastewater application fee capped at $50.00 for residential development under 3 V.S.A. § 2822(j)(4)(D);
(8) exclusion from the land gains tax provided by 32 V.S.A. § 10002(p); and
(9) the authority to create a special taxing district pursuant to chapter 87 of this title for the purpose of financing both capital and operating costs of a project within the boundaries of a neighborhood.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5805 Grants and gifts
The Department of Housing and Community Development may accept funds, grants, gifts, or donations of up to $10,000.00 from individuals, corporations, foundations, governmental entities, or other sources, on behalf of the Community Planning and Revitalization Division to support trainings, conferences, special projects, and initiatives.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5806 Designation data center
The Department, in coordination with the LURB, shall maintain an online municipal planning data center publishing approved regional plan future land use maps adoptions and amendments and indicating the status of each approved designation within the region, and associated steps for centers.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
§ 5807 Better Places Program; crowd granting
(a)(1) There is created the Better Places Program within the Department of Housing and Community Development, and the Better Places Fund, which the Department shall manage pursuant to 32 V.S.A. chapter 7, subchapter 5. This shall be the same Fund created under the prior section 2799 of this title.
(2) The purpose of the Program is to utilize crowdfunding to spark community revitalization through collaborative grantmaking for projects that create, activate, or revitalize public spaces.
(3) The Department may administer the Program in coordination with and support from other State agencies and nonprofit and philanthropic partners.
(b) The Fund is composed of the following:
(1) State or federal funds appropriated by the General Assembly;
(2) gifts, grants, or other contributions to the Fund; and
(3) any interest earned by the Fund.
(c) As used in this section, “public space” means an area or place that is open and accessible to all persons with no charge for admission and includes village greens, squares, parks, community centers, town halls, libraries, and other publicly accessible buildings and connecting spaces such as sidewalks, streets, alleys, and trails.
(d)(1) The Department of Housing and Community Development shall establish an application process, eligibility criteria, and criteria for prioritizing assistance for awarding grants through the Program.
(2) The Department may award a grant to a municipality, a nonprofit organization, or a community group with a fiscal sponsor for a project that is located in or serves an area designated under this chapter that will create a new public space or revitalize or activate an existing public space.
(3) The Department may award a grant to not more than three projects per calendar year within a municipality.
(4) The minimum amount of a grant award is $5,000.00, and the maximum amount of a grant award is $40,000.00.
(5) The Department shall develop matching grant eligibility requirements to ensure a broad base of community and financial support for the project, subject to the following:
(A) A project shall include in-kind support and matching funds raised through a crowdfunding approach that includes multiple donors.
(B) An applicant may not donate to its own crowdfunding campaign.
(C) A donor may not contribute more than $10,000.00 or 35 percent of the campaign goal, whichever is less.
(D) An applicant shall provide matching funds raised through crowdfunding of not less than 33 percent of the grant award. The Department may require a higher percent of matching funds for certain project areas to ensure equitable distribution of resources across Vermont.
(e) The Department of Housing and Community Development, with the assistance of a fiscal agent, shall distribute funds under this section in a manner that provides funding for projects of various sizes in as many geographical areas of the State as possible.
(f) The Department of Housing and Community Development may use up to 15 percent of any appropriation to the Fund from the General Fund to assist with crowdfunding, administration, training, and technological needs of the Program.
(Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)
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