§§ 1 Repealed. 2009, No. 156 (Adj. Sess.), § E.801.1, eff. June 3, 2010.

§ 2. Repealed. 2011, No. 162 (Adj. Sess.), § E.800.3.

§ 3. Economic development; principles; review and assessment.

1. For purposes of the Vermont Statutes Annotated and State economic development programs and assistance, "economic development" means the process of generating economic wealth and vitality, security, and opportunity for all Vermonters.
2. There are established the following four interrelated principles for future economic development in Vermont:
   1. Vermont's businesses, educators, nongovernmental organizations, and government form a collaborative partnership that results in a highly skilled multigenerational workforce to support and enhance business vitality and individual prosperity.
   2. Vermont invests in its digital, physical, and human infrastructure as the foundation for all economic development.
   3. Vermont State government takes advantage of its small scale to create nimble, efficient, and effective policies and regulations that support business growth and the economic prosperity of all Vermonters.
   4. Vermont leverages its brand and scale to encourage a diverse economy that reflects and capitalizes on our rural character, entrepreneurial people, and reputation for environmental quality.
3. The four principles shall be used to guide the design and implementation of each economic development program, policy, or initiative that is sponsored or financially supported by the State, its subdivisions, agencies, authorities, or private partners.
4. [Repealed.]

   Added 2009, No. 54 , § 4, eff. June 1, 2009; amended 2015, No. 11 , § 2.

§ 4. New relocating employee incentives.

1. The Agency of Commerce and Community Development shall design and implement a program to award incentive grants to relocating employees as provided in this section and subject to the policies and procedures the Agency adopts to implement the program.
2. A relocating employee may be eligible for a grant under the program for qualifying expenses, subject to the following:
   1. A base grant shall not exceed $5,000.00.
   2. The Agency may award an enhanced grant, which shall not exceed $7,500.00, for a relocating employee who becomes a resident in a labor market area in this State in which:
      1. the average annual unemployment rate in the labor market area exceeds the average annual unemployment rate in the State; or
      2. the average annual wage in the State exceeds the annual average wage in the labor market area.
3. The Agency shall:
   1. adopt procedures for implementing the program, which shall include a simple certification process to certify relocating employees and qualifying expenses;
   2. promote awareness of the program, including through coordination with relevant trade groups and by integration into the Agency's economic development marketing campaigns;
   3. award grants to relocating employees on a first-come, first-served basis beginning on July 1, 2021, subject to available funding; and
   4. adopt measurable goals, performance measures, and an audit strategy to assess the utilization and performance of the program.
4. On or before January 15, 2022, the Agency shall submit a report to the House Committee on Commerce and Economic Development and the Senate Committee on Economic Development, Housing and General Affairs concerning the implementation of this section, including:
   1. a description of the policies and procedures adopted to implement the program;
   2. the promotion and marketing of the program; and
   3. an analysis of the utilization and performance of the program, including the projected revenue impacts and other qualitative and quantitative returns on investment in the program based on available data and modeling.
5. As used in this section:
   1. "Qualifying expenses" means the actual costs a relocating employee incurs for relocation expenses, which may include moving costs, closing costs for a primary residence, rental security deposit, one month's rent payment, and other relocation expenses established in Agency guidelines.
   2. "Relocating employee" means an individual who meets the following criteria:
      1. 1. On or after July 1, 2021: (A) (i) On or after July 1, 2021:
            1. the individual becomes a full-time resident of this State;
            2. the individual becomes a full-time employee at a Vermont location of a for-profit or nonprofit business organization domiciled or authorized to do business in this State, or of a State, municipal, or other public sector employer;
            3. the individual becomes employed in one of the "Occupations with the Most Openings" identified by the Vermont Department of Labor in its "Short Term Employment Projections 2020-2022"; and
            4. the employer attests to the Agency that, after reasonable time and effort, the employer was unable to fill the employee's position from among Vermont applicants; or
         2. on or after February 1, 2022:
            1. the individual becomes a full-time resident of this State; and
            2. the individual is a full-time employee of an out-of-state business and performs the majority of his or her employment duties remotely from a home office or a co-working space located in this State.
      2. The individual receives gross salary or wages that equal or exceed the Vermont livable wage rate calculated pursuant to 2 V.S.A. § 526 .
      3. The individual is subject to Vermont income tax.

         Added 2021, No. 51 , § 2.

§§ 5, 6. Repealed. 1991, No. 145 (Adj. Sess.), § 6.

§ 7. Economic development; assistance and incentives benchmark reports.

1. For purposes of this section, "economic development assistance recipient" means any business entity, including a for-profit corporation, a nonprofit corporation, a partnership, or a sole proprietorship that receives economic development assistance from State funds administered by a governmental agency, from State funds administered by a private entity, or from federal funds administered by the State, whether such assistance is in the form of a grant, a loan, a State tax abatement, a tax credit, a tax increment financing program, or such other form of economic development assistance or incentive as the Secretary of Commerce and Community Development may identify by rule.
2. Each economic development recipient shall state, on a form approved by the agency granting assistance, or awarding a tax credit or abatement, or approving any other form of economic development assistance, the number of new jobs that will be created or existing jobs that will be retained as a result of such assistance, the wages and employee benefits associated with such jobs, and a description of any other public benefits associated with such economic development assistance.  Such statement shall be made prior to any such grant, award, or approval.  Such statements and the information contained therein shall not be available for public inspection until 90 days after the granting of assistance, or the awarding of a tax credit or abatement, or the approving any other form of economic development assistance or incentive.  After the expiration of such 90-day period such statements and information shall not be considered confidential, and may be inspected and copied pursuant to 1 V.S.A. chapter 5, subchapter 3 (public records law), notwithstanding the provisions of any other law.
3. Each economic development recipient shall report annually, in a manner and on a form prescribed by the Commissioner of Economic Development, the amount or monetary value of economic assistance or incentive granted, awarded or approved, and such information as is necessary to determine whether the recipient has reached its job creation or other public benefit goals stated pursuant to subsection (b) of this section.
4. The Commissioner of Economic Development shall adopt such rules as are necessary to carry out the purposes of this section.

   Added 1995, No. 190 (Adj. Sess.), § 12g; amended 2009, No. 33 , § 18.

§ 8. Southern Vermont Economic Development Zone.

There is created the Southern Vermont Economic Development Zone, comprising the geographic areas served by the Brattleboro Development Credit Corporation and the Bennington County Industrial Corporation.

Added 2015, No. 51 , § F.3, eff. June 3, 2015.

§ 9. Investment in Vermont Community Loan Fund.

Notwithstanding any provision of 32 V.S.A. § 433(a) to the contrary, the State Treasurer is authorized to invest up to $2,000,000.00 of short-term operating or restricted funds in the Vermont Community Loan Fund on terms acceptable to the Treasurer and consistent with prudent investment principles and guidelines pursuant to 32 V.S.A. § 433(b) -(c).

Added 2015, No. 157 (Adj. Sess.), § F.6; amended 2019, No. 72 , § E.131; 2019, No. 120 (Adj. Sess.), § A.14, eff. June 30, 2020.

§ 10. Vermont State Treasurer; credit facility for local investments.

1. Notwithstanding any provision of 32 V.S.A. § 433(a) to the contrary, the Vermont State Treasurer shall have the authority to establish a credit facility of up to 10 percent of the State's average cash balance on terms acceptable to the Treasurer and consistent with prudent investment principles and guidelines pursuant to 32 V.S.A. § 433(b) -(c) and the Uniform Prudent Investor Act, 14A V.S.A. chapter 9.
2. The Treasurer may use amounts available under this section to provide financing for infrastructure projects in Vermont mobile home parks and may modify the terms of such financing in his or her discretion as is necessary to promote the availability of mobile home park housing and to protect the interests of the State.

   Added 2015, No. 157 (Adj. Sess.), § F.9; 2019, No. 179 (Adj. Sess.), § 6, eff. Oct. 12, 2020.

§ 11. Treasurer's Local Investment Advisory Committee.

1. Creation of committee.  The Treasurer's Local Investment Advisory Committee is established to advise the Treasurer on funding priorities and address other mechanisms to increase local investment.
2. Membership.
   1. The Advisory Committee shall be composed of six members as follows:
      1. the State Treasurer or designee;
      2. the Chief Executive Officer of the Vermont Economic Development Authority or designee;
      3. the Chief Executive Officer of the Vermont Student Assistance Corporation or designee;
      4. the Executive Director of the Vermont Housing Finance Agency or designee;
      5. the Director of the Municipal Bond Bank or designee; and
      6. the Director of Efficiency Vermont or designee.
   2. The State Treasurer shall be the Chair of the Advisory Committee and shall appoint a vice chair and secretary. The appointed members of the Advisory Committee shall be appointed for terms of six years and shall serve until their successors are appointed and qualified.
3. Powers and duties.  The Advisory Committee shall:
   1. meet regularly to review and make recommendations to the State Treasurer on funding priorities and using other mechanisms to increase local investment in the State of Vermont;
   2. invite regularly State organizations, citizens' groups, and members of the public to Advisory Committee meetings to present information on needs for local investment, capital gaps, and proposals for financing; and
   3. consult with constituents and review feedback on changes and needs in the local and State investment and financing environments.
4. Meetings.
   1. Meetings of the Advisory Committee shall occur at the call of the Treasurer.
   2. A majority of the members of the Advisory Committee who are physically present at the same location or available electronically shall constitute a quorum, and a member may participate and vote electronically.
   3. To be effective, action of the Advisory Committee shall be taken by majority vote of the members at a meeting in which a quorum is present.
5. Report.  On or before January 15, the Advisory Committee annually shall submit a report to the Senate Committees on Appropriations, on Economic Development, Housing and General Affairs, on Finance, and on Government Operations and the House Committees on Appropriations, on Commerce and Economic Development, on Ways and Means, and on Government Operations. The report shall include the following:
   1. the amount of the subsidies associated with lending through each credit facility authorized by the General Assembly and established by the Treasurer;
   2. a description of the Advisory Committee's activities; and
   3. any information gathered by the Advisory Committee on the State's unmet capital needs, and other opportunities for State support for local investment and the community.

      Added 2015, No. 157 (Adj. Sess.), § F.9.

§ 12. -14. [Reserved for future use].

§ 20. EB-5 Program; regulation; oversight.

1. The U.S. Department of Homeland Security's U.S. Citizenship and Immigrations Services (USCIS) administers the EB-5 Program, a federal program designed to stimulate the U.S. economy through job creation and capital investment by foreign investors. The Vermont EB-5 Regional Center is a USCIS-designated regional center. The Center is managed by the Agency of Commerce and Community Development in partnership with the Department of Financial Regulation.
2. The Agency of Commerce and Community Development has the personnel and resources to market and promote economic opportunities in Vermont, whereas the Department of Financial Regulation has the personnel and resources to supervise financial services and products offered in Vermont in a manner that advances fair business practices and protects the investing public. It is imperative that management of the EB-5 Program reflect the existing expertise of both these State entities.
3. The Secretary of Commerce and Community Development and the Commissioner of Financial Regulation shall separately adopt rules pertaining to the administration and oversight of the EB-5 Program. The rules shall be consistent with federal regulations and requirements as well as with the statutory expertise of the Department and Agency.
4. The rules adopted under this section shall be modeled after the Memorandum of Understanding between the Agency of Commerce and Community Development and the Department of Financial Regulation, dated December 22, 2014, which pertains to the duties and responsibilities of the Agency and the Department with respect to the EB-5 Program. As such, the rules shall include provisions related to:
   1. communication with and reporting to the USCIS;
   2. marketing activities;
   3. required provisions pertaining to private placement memoranda;
   4. securities analysis and standards for project approval;
   5. ongoing oversight and compliance of approved projects, including annual audits;
   6. the establishment of escrow accounts for capital investments and third-party oversight of requisitions, if deemed appropriate by the Commissioner and Secretary;
   7. investor relations and a formal complaint protocol;
   8. standards for revoking approval of a project;
   9. penalties for failure to comply with rules adopted under this section;
   10. communication between the Agency and the Department, as well as with media outlets and with other regulatory or law enforcement entities;
   11. fees and costs of the Regional Center, consistent with subsection 21(c) of this title; and
   12. any other matter the Commissioner and the Secretary determine will strengthen the oversight and management of the EB-5 Program and prevent fraudulent activities.
5. The rules adopted under this section shall explicitly state that any interest obtained through a capital investment in the EB-5 Program is a "security" as defined in 9 V.S.A. § 5102(28) and as such is subject to regulation by the Commissioner of Financial Regulation under the Vermont Uniform Securities Act, 9 V.S.A. chapter 150.

   Added 2015, No. 149 (Adj. Sess.), § 34b.

§ 21. EB-5 Special Fund.

1. An EB-5 Special Fund is created to support the operating costs of the Vermont Regional Center for Immigrant Investment under the federal EB-5 Program. The Fund shall consist of revenues derived from administrative charges by the Agency of Commerce and Community Development pursuant to subsection (c) of this section, any interest earned by the Fund, and all sums that are from time to time appropriated for the support of the Regional Center and its operations. It is the intent of the General Assembly that the collection of charges authorized by this section will reduce or eliminate the need for legislative appropriations to support Regional Center expenses.
2. 1. The receipt and expenditure of monies from the Special Fund shall be under the supervision of the Secretary of Commerce and Community Development. (b) (1)  The receipt and expenditure of monies from the Special Fund shall be under the supervision of the Secretary of Commerce and Community Development.
   2. The Secretary of Commerce and Community Development shall maintain accurate and complete records of all receipts and expenditures by and from the Fund, and shall make an annual report on the condition of the Fund to the Secretary of Administration, the House Committees on Commerce and Economic Development and on Ways and Means, and the Senate Committees on Finance and on Economic Development, Housing and General Affairs.
   3. Expenditures from the Fund shall be used only to support the operating expenses of the Regional Center, including the costs of providing specialized services to support participating economic development projects, marketing and related travel expenses, application review and examination expenses, and personnel expenses incurred by the Agency of Commerce and Community Development. At the end of each fiscal year, the Secretary of Administration shall transfer from the EB-5 Special Fund to the General Fund any amount that the Secretary of Administration determines, in his or her discretion, exceeds the funds necessary to administer the Program.
3. Notwithstanding 32 V.S.A. § 603 , the Secretary of Commerce and Community Development is authorized to impose administrative charges on project developers to achieve the Fund's purpose. The charges shall be sufficient to fully fund the personnel and operating expenses of the Regional Center and shall include a one-time application fee as well as an annual assessment apportioned among approved projects in a fair and equitable manner as specified in rules adopted under section 20 of this title. In addition, the rules shall require that an applicant or approved project developer, as applicable, is liable for any additional expenses incurred with respect to the retention of outside legal, financial, examination or other services or studies deemed necessary by the Secretary or the Commissioner to assist with application or project review. The collection of some or all charges authorized under this section may be suspended for a period of time as deemed appropriate by the Secretary for good cause shown. Any charges imposed under this section shall be included in the consolidated Executive Branch fee report required under 32 V.S.A. § 605 .
4. Any costs incurred by the Department of Financial Regulation in connection with of the EB-5 Program shall be reimbursed in the manner specified in 8 V.S.A. § 18(d) .

   Added 2011, No. 52 , § 21, eff. May 27, 2011; amended 2011, No. 75 (Adj. Sess.), § 105, eff. March 7, 2012; 2015, No. 149 (Adj. Sess.), § 34c.

§§ 21-23. Repealed. 1979, No. 159 (Adj. Sess.), § 21.

§§ 25-33. Repealed. 2009, No. 135 (Adj. Sess.), § 26(3)(B), eff. May 29, 2010.

§ 51. Vermont building.

The Secretary of Agriculture, Food and Markets is hereby invested with the management and control of the operation and affairs of the Vermont building at Eastern States Exposition. The Secretary shall cooperate with public and private agencies for the purpose of exhibiting the resources, products, and general development of the State of Vermont and for advertising its agricultural, industrial, and recreational possibilities.

Amended 1959, No. 329 (Adj. Sess.), § 18(a), eff. March 1, 1961; 1977, No. 152 (Adj. Sess.), § 1; 2003, No. 42 , § 2, eff. May 27, 2003.

§ 52. Maintenance.

The Department of Buildings and General Services shall be responsible for the maintenance of the land and buildings and repair and alterations of the physical structure including adequate coverage by insurance.

Amended 1983, No. 141 (Adj. Sess.), § 4(a), eff. April 11, 1984.

§ 53. Assistants.

The Secretary may, with the approval of the Governor, employ such persons to carry out the operation of such building, including the rental or lease or sale of rental or exhibition space of any portion of such building upon such terms and conditions as the Secretary shall determine.

Amended 1959, No. 329 (Adj. Sess.), § 18(a), eff. March 1, 1961; 1977, No. 152 (Adj. Sess.), § 2; 2003, No. 42 , § 2, eff. May 27, 2003.

§ 54. Rental of building; disposition of funds.

The Secretary may rent the building or parts thereof for exhibition purposes to available exhibitors with reasonable preference being given to exhibitors from this State and, with the approval of the Governor, may rent or lease any part or all of the building to such parties and upon such terms and conditions and for such purposes as they shall determine to be in the best interests of the State, and the income therefrom shall be paid to the State Treasurer and held by him or her in a separate fund for the purposes of this chapter. The Commissioner of Finance and Management shall issue his or her warrant for the payment from such fund of all sums expended or due for the purposes herein authorized.

Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1959, No. 329 (Adj. Sess.), § 18(a), eff. March 1, 1961; 1977, No. 152 (Adj. Sess.), § 3; 1983, No. 195 (Adj. Sess.), § 5(b); 2003, No. 42 , § 2, eff. May 27, 2003; 2011, No. 104 (Adj. Sess.), § 28a.

§ 55. Repealed. 1999, No. 49, § 130.

§ 101. Division of Geology and Mineral Resources; duties.

The Division of Geology and Mineral Resources shall:

1. conduct surveys and research related to the geology, mineral resources, and topography of the State;
2. give aid and advice as may be possible relating to the development and working of rock or mineral deposits suitable for building, road making, and economic or other purposes;
3. provide information and education to government, industry, other institutions and organizations, and to citizens regarding the geology, mineral resources, and topography of the State;
4. provide technical information and advice regarding the management of mineral resources on State-owned lands, and cooperate where possible by providing geologic expertise and advice to persons conducting regulatory programs for the State;
5. provide geological services for the Natural Gas and Oil Resources Board;
6. maintain records of old and new information relating to the geology, mineral resources, and topography of the State;
7. prepare and publish reports on the geology, mineral resources, and topography of the State.

   Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b); 1989, No. 245 (Adj. Sess.), § 3; 2015, No. 29 , § 17.

§ 102. Repealed. 1989, No. 245 (Adj. Sess.), § 6.

§ 103. Contracts; maps.

1. For the purpose of maintaining the geologic, mineral resource, and topographic surveys of this State, the Division of Geology and Mineral Resources may contract with agencies or departments of the U.S. government, for such work as may be required, including the methods of its execution and the order in which the mapping, research, and other surveys of the different parts of the State shall be completed; provided that the agencies or departments with whom the Division enters into a contract under this section shall agree to expend annually, on the part of the United States, upon such work a sum equal to or greater than that made annually available by this State for these purposes.
2. All maps and other products shall conform to the highest quality and standards established by this State and the participating federal agency.  All maps shall be made adaptable to the most modern techniques of production, reproduction and display.

   Amended 1989, No. 245 (Adj. Sess.), § 4.

§ 104. Expenditure of monies.

The monies annually available for the purposes of section 103 of this title shall be expended by the State in accordance with the provisions of that section and relevant federal regulations.

Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b); 1989, No. 245 (Adj. Sess.), § 5.

§ 105. Geological publications and products; account.

A special fund account to be known as the State Geological Publications Account is created. The Account shall contain all receipts from the sale of geological publications and products produced and sold by the State Geologist, and may be expended by the State Geologist for the purpose of supporting the production of geological publications and products. All balances in the Account at the end of any fiscal year shall be carried forward and remain part of the Account. Disbursements from the Account shall be made by the State Treasurer on warrants drawn by the Commissioner of Finance and Management.

Added 1987, No. 225 (Adj. Sess.), § 1; amended 1997, No. 155 (Adj. Sess.), § 33.

§ 121. Definitions.

As used in this chapter:

1. "VGIS" means the Vermont Geographic Information System developed pursuant to the comprehensive strategy developed by the Center as required by section 122 of this title.
2. "Electronic products and services" means computer-related services and products provided by the Center, including:
   1. Electronic manipulation of the data contained in public records in order to tailor the data to a customer's request, or to develop a product that meets the needs of customers.
   2. Duplication of public records in alternative formats not used by the Center, providing periodic updates of an electronic file or database, or duplicating an electronic file or database.
   3. Provision of on-line access to an electronic file or database or any form of electronic access to the information system of the Center.
   4. Provision of software developed by or for the Center.
   5. Generating maps, listings, or other standard or customized products from an electronic geographic information system.
3. "Media" means the physical material on which written, printed, or electronically encoded information is stored.

   Added 1993, No. 204 (Adj. Sess.), § 2, eff. June 17, 1994.

§ 122. Vermont Center for Geographic Information, incorporated; establishment.

1. The State of Vermont shall support a comprehensive strategy for the development and use of a geographic information system, including:
   1. data and mapping standards;
   2. potential applications and their priorities;
   3. priorities for collecting and digitizing information;
   4. geographic location standards for all data collection;
   5. software and hardware standards;
   6. management needs;
   7. private sector cooperation;
   8. costs and benefits of use;
   9. [Repealed.]
   10. ways to make information gathered available to regional and municipal entities, commercial entities, the public, and others;
   11. ways to assure that data gathered by governmental entities conforms to the geographic information system;
   12. an implementation schedule.
2. In order to develop and implement that strategy, and to ensure that all data gathered by State agencies that is relevant to the VGIS shall be in a form that is compatible with, useful to, and shared with that geographic information system, there is hereby established the Vermont Center for Geographic Information (the Center) as a unit of the Data Management Division under the Agency of Digital Services.
3. [Repealed.]

   Added 1993, No. 204 (Adj. Sess.), § 2, eff. June 17, 1994; amended 2013, No. 179 (Adj. Sess.), § E.800.1; 2018, No. 11 (Sp. Sess.), § F.101; 2019, No. 49 , § 6, eff. June 10, 2019.

§ 123. Powers and duties.

1. [Repealed.]
2. The purposes of the Center shall be to:
   1. assure that all VGIS data are of high quality and are compatible with, useful to, and shared with other public-sector and private-sector data users;
   2. encourage the same high standards of quality and compatibility in other Vermont GIS cooperators;
   3. promote the efficient development and use of geographic information by agencies of the State, its political subdivisions, and Vermont businesses and citizens;
   4. facilitate the growth of commercial services within Vermont for the provision of spatial data, products, and services.
3. Within the limits of available resources, the Center shall operate a program of standards development, data dissemination, and quality assurance, and shall perform the following duties:
   1. Provide or ensure provision of geographic information products and services to Vermont citizens, to local and regional planning organizations, to State government, to the federal government, and to private businesses and industries.
   2. Develop procedures for access to the VGIS. Those procedures shall ensure that VGIS data are readily available for the purposes of 24 V.S.A. chapter 117, as well as for the support of efficient and economical geographic analysis and decision making by government, business, and citizens of Vermont, at a reasonable cost and in reasonable forms.
   3. Develop, publish, maintain, and implement such VGIS standards as are necessary to assure that data are compatible with, useful to, and shared with all users of VGIS data, including geographic data standards relating to scale, accuracy, coding, documentation, data format, and physical media.
   4. In developing relevant policies, procedures, and standards, seek the consultation of institutions of higher learning, local government, local and regional planning, private business and industry, and other members of the public with an interest in or knowledge of GIS technology.
   5. For all geographic data that are or may be useful to the Center's users, and that have been collected by any part of State government or generated with State support, ensure that such data:
      1. Are developed and maintained so as to conform to VGIS standards.
      2. Upon request of a potential user, are actually made available to the user in a usable format in accordance with 1 V.S.A. § 316 relating to access to public records and related statutes.
      3. Are stored and distributed in a manner that will limit the disclosure of data containing individual identifiers to disclosure consented to by the individuals in the data.
   6. Assist in assessing VGIS financial needs and resources for cooperating State agencies, evaluating the adequacy of those financial resources to meet the goals of the three-year VGIS work plan, and developing alternate sources of revenue for VGIS data acquisition.
   7. Enter into memoranda of understanding, form contracts, and enter cooperative agreements for the development, acquisition, maintenance, distribution, and marketing of GIS data.
   8. Include in any contract for electronic products and services provisions that:
      1. Protect the security and integrity of VGIS information and of information systems that are shared by public agencies.
      2. Indemnify or limit the liability, if any, of the State of Vermont.
   9. Notify the State Librarian of the electronic services and products offered to the public. The notification must include a summary of the available format options and the cost of such products and services.
   10. Retain archive copies and act as a distributor for any State agency, as well as for other public and private entities, that prepares GIS data or electronic products that are compatible with, useful to, and shared with VGIS.
   11. Assist the Secretaries of Administration, of Transportation, of Natural Resources, of Human Services, and of Commerce and Community Development, and the commissioner or director of State departments and offices not within these agencies in the identification of information gathered within the respective agency, department, or office that is relevant to Vermont's GIS. Working in cooperation with each organization that identifies such information, the Center shall include components within the three-year VGIS work plan. Such cooperation may include:
       1. formulation of a "memorandum of understanding" between the organization and the Center, setting out roles and the relationship between the parties;
       2. periodic meetings to identify opportunities for improvement of VGIS information and applications gathered or used by the organization;
       3. identification of funding strategies, technical procedures, data conversion plans, and application development projects in which the Center can be of assistance to the organization.
   12. Provide to regional planning commissions, State agencies, and the general public orthophotographic imagery of the State at a scale appropriate for the production and revision of town property maps. Periodically, such digital imagery shall be updated to capture land use changes, new settlement patterns, and such additional information as may have become available to the Director or the Center.
       1. The Center shall supply to each town such orthophotographic imagery as has been prepared by it of the total area of that town. Any image shall be available, without charge, for public inspection in the office of the town clerk to whom the imagery was supplied.
       2. At a reasonable charge to be established by the Center and the Director, the Center shall supply to any person or agency other than a town clerk or lister a copy of any digital format orthophotographic imagery created under this section.
       3. Hard copy or nondigital format orthophotographic imagery created under this section shall be available for public review at the State Archives.
4. The Center may provide specialized information or perform specialized services if these activities:
   1. contribute to achieving the purposes of the Center as stated in subsection (b) of this section;
   2. are pursued in partnership with the private sector; and
   3. are performed without cost to the taxpayer and all direct and indirect costs of obtaining these products and services are incurred by the customer or others.
5. [Repealed.]

   Added 1993, No. 204 (Adj. Sess.), § 2, eff. June 17, 1994; amended 1995, No. 190 (Adj. Sess.), § 1, eff. July 1, 1996; 2013, No. 34 , § 5; 2013, No. 179 (Adj. Sess.), § E.800.2, eff. March 30, 2015; 2015, No. 57 , § 36, eff. June 11, 2015; 2015, No. 97 (Adj. Sess.), § 19.

§§ 124-126. Repealed. 2013, No. 179 (Adj. Sess.), § E.800.6, eff. March 30, 2015.

§ 127. Resource mapping.

1. On or before January 15, 2013, the Secretary of Natural Resources shall complete resource mapping based on the Geographic Information System (GIS). The mapping shall identify natural resources throughout the State that may be relevant to the consideration of energy projects. The Center for Geographic Information shall be available to provide assistance to the Secretary in carrying out the GIS-based resource mapping.
2. The Secretary of Natural Resources shall consider the GIS-based resource maps developed under subsection (a) of this section when providing evidence and recommendations to the Public Utility Commission under 30 V.S.A. § 248(b)(5) and when commenting on or providing recommendations under chapter 151 of this title to District Commissions on other projects.

   Added 2011, No. 170 (Adj. Sess.), § 16c, eff. May 18, 2012.

§ 128. Vermont Center for Geographic Information Special Fund.

1. A special fund is created for the operation of the Vermont Center for Geographic Information in the Agency of Digital Services. The fund shall consist of revenues derived from the charges by the Agency of Digital Services pursuant to subsection (c) of this section for the provision of Geographic Information products and services, interest earned by the fund, and sums which from time to time may be made available for the support of the Center and its operations. The fund shall be established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5 and shall be available to the Agency to support activities of the Center.
2. The receipt and expenditure of monies from the special fund shall be under the supervision of the Secretary of Digital Services.
3. Notwithstanding 32 V.S.A. § 603 , the Secretary of Digital Services is authorized to impose charges reasonably related to the costs of the products and services of the Vermont Center for Geographic Information, including the cost of personnel, equipment, supplies, and intellectual property.

   Added 2015, No. 57 , § 28, eff. June 11, 2015; amended 2018, No. 11 (Sp. Sess.), § F.100.

§ 151. Terminology and spelling.

1. The State Librarian is authorized to furnish for any federal or state publication the proper terminology and spelling of any geographic name in Vermont and may advise the U.S. Postal service regarding the proper selection and spelling of the name of a Vermont post office or any railroad company regarding the use and spelling of the name of a Vermont station.  The State Librarian is authorized to function in collaboration with the U.S. board on geographic names and to conduct his or her operations similarly.
2. The names used in the topographic maps of the State now being prepared by the U.S. Geological Survey in cooperation with the State shall be spelled in accordance with the recommendations of the State Librarian.

   Amended 1959, No. 329 (Adj. Sess.), § 45, eff. March 1, 1961.

§ 152. Authority to name geographic locations.

The Board of Libraries is hereby designated the State agency to name geographic locations, including mountains, streams, lakes, and ponds, upon petition signed by not less than 25 interested persons or by petition of an administrative department of the State.

Added 1961, No. 139 , § 3, eff. May 24, 1961; amended 1969, No. 226 (Adj. Sess.), § 2, eff. March 31, 1970; 2015, No. 40 , § 25, eff. March 1, 2016; 2017, No. 74 , § 16.

§ 153. Procedure.

When the Board receives a petition to act under section 152 of this title it shall give reasonable notice to each administrative department of the State having jurisdiction of the location to be named and to each town in which the location lies of the time and place when it will hear all interested parties.

Added 1961, No. 139 , § 4, eff. May 24, 1961; 2015, No. 40 , § 26, eff. March 1, 2016.

§ 154. Standards.

The Board in choosing names shall give preference to historical events, historic persons, and flora and fauna native to Vermont; names characteristic to Vermont; and its traditions and local place names where long usage has made them appropriate and useful.

1961, No. 139 , § 5, eff. May 24, 1961.

§§ 171 Repealed. 1989, No. 265 (Adj. Sess.), § 8, eff. June 21, 1990.

§§ 172-174. Repealed. 1967, No. 93, § 3, eff. April 14, 1967.

§§ 181-192. Repealed. 1989, No. 265 (Adj. Sess.), § 8, eff. June 21, 1990.

§§ 201-205. Repealed. 1989, No. 265 (Adj. Sess.), § 8, eff. June 21, 1990.

§§ 171-175. Repealed. 2009, No. 135 (Adj. Sess.), § 26(3)(C).

§§ 176-182. Repealed. 2009, No. 135 (Adj. Sess.), § 26(3)(C).

§ 210. Statutory purposes.

The statutory purpose of the exemption for local development corporations in section 236 of this title is to promote economic development.

Added 2013, No. 200 (Adj. Sess.), § 7.

§ 211. Legislative findings.

1. The Legislature finds that it is necessary to alleviate and prevent unemployment and underemployment and to raise the per capita income within the State, that the development and increase of industry, including the further processing of agricultural products, within the State will promote the prosperity and general welfare of all citizens, and that this chapter is necessary and desirable in order to accomplish these purposes. The Legislature also finds that it is necessary and desirable to encourage the development, production, and distribution of renewable energy resources within the State.
2. The Legislature further finds that small businesses are responsible for generating the majority of new jobs, and substantial economic development opportunity exists encouraging entrepreneurial development and innovation in Vermont.  The Legislature further finds that business incubator facilities have proved to be effective tools to help small and start-up businesses through the difficult early years with low-cost, flexible space, necessary support services at an affordable cost, and with managerial and technical assistance on such items as bookkeeping, inventory control, marketing and personnel.  Vermont's experience with business incubators confirms their value in nurturing jobs and entrepreneurship.  The Legislature further finds that business incubator facilities related to institutions of higher education nationwide have been an excellent source for successful business enterprises.
3. Therefore, the general public advantage requires:
   1. an increased inventory of industrial sites and modern buildings suitable to house new or existing business enterprises;
   2. the expansion, reclamation, or renovation of existing buildings to house new or existing business enterprises;
   3. low-cost capital available to local development corporations for the purchase of land for industrial sites, for planning and development of industrial parks, and for the construction of speculative industrial buildings and small business incubator facilities;
   4. low-cost capital available to industrial enterprises to provide land, buildings, and equipment for industrial expansion;
   5. aid to existing business enterprises in the State when such aid will prevent serious reduction in employment or will enhance or increase the existing level of employment;
   6. low-cost capital for the abatement of industrial air and water pollution and general improvement of the disposal of industrial waste;
   7. low-cost capital to assist Vermont family farmers to farm as provided in subdivision 272(3) of this title;
   8. low-cost capital available for the purchase of land, buildings, and equipment to process Vermont milk, including the processing of milk into cheese, yogurt, or other value-added milk products; and
   9. low-cost capital to assist the wood products enterprises to provide an adequate supply of mill quality chips for Vermont public and private schools and other entities that rely upon wood as a primary source of heating.

      Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 217 (Adj. Sess.), § 4; 1985, No. 81 , § 2; 1985, No. 136 (Adj. Sess.), § 1, eff. April 24, 1986; 2003, No. 63 , § 73, eff. June 11, 2003; 2003, No. 121 (Adj. Sess.), § 91, eff. June 8, 2004.

§ 212. Definitions.

As used in this chapter:

1. "Authority" means the Vermont Economic Development Authority established under section 213 of this title.
2. "Bond" means a note, bond, debenture, or any other evidence of indebtedness issued by a municipality or by the State of Vermont under subchapter 4 of this chapter to finance a project in whole or in part or to refund indebtedness incurred for that purpose.
3. "Debt service," as used in subchapter 4 of this chapter, means the amounts required to pay bonds according to their terms and shall include amounts representing principal, premium, and interest, including interest on overdue payments.
4. "Financing document," as used in subchapter 4 of this chapter, means a written instrument establishing the rights and responsibilities of a municipality or the Authority and the user with respect to an eligible facility financed by the issue of bonds. A financing document may be in the nature of a sale and leaseback, a lease purchase, a conditional sale, an installment sale, a secured or unsecured loan, a loan and mortgage, or other similar transaction, may bear any appropriate title and may involve property in addition to the property financed by the bonds. The municipality's or Authority's ownership or possessory interest in the eligible facility under a financing document may be that of owner, lessor, lessee, conditional or installment vendor, mortgagor, mortgagee, or otherwise, but the municipality or the Authority need not have any ownership or possessory interest in the facility.
5. "Governing body" means the board of aldermen or city council of a city, the board of selectboard members of a town, and the trustees of an incorporated village.
6. "Eligible facility" or "eligible project" means any industrial, commercial, or agricultural enterprise or endeavor approved by the Authority that meets the criteria established in the Vermont Sustainable Jobs Strategy adopted by the Governor under section 280b of this title, including land and rights in land, air, or water, buildings, structures, machinery, and equipment of such eligible facilities or eligible projects, except that an eligible facility or project shall not include the portion of an enterprise or endeavor relating to the sale of goods at retail where such goods are manufactured primarily out of state, and except further that an eligible facility or project shall not include the portion of an enterprise or endeavor relating to housing. Such enterprises or endeavors may include:
   1. Quarrying, mining, manufacturing, processing, including the further processing of agricultural products, assembling, or warehousing of goods or materials for sale or distribution or the maintenance of safety standards in connection therewith, and including Vermont-based manufacturers that are adversely impacted by the State's regulation or ban of products as they transition from the manufacture of the regulated or banned products to the design and manufacture of environmentally sound substitutes.
   2. The conduct of research and development activities, including research and development of computer software and telecommunications equipment.
   3. Use as the national or regional headquarters for a multistate business enterprise or for purposes of subchapter 4 of this chapter only, use as the national headquarters of a nonprofit organization whose purpose is the promotion of business, industry, or agriculture, including the registry of animal breeds.
   4. Collecting or processing any kind of waste material for reuse or disposal.
   5. Reducing, mitigating, or eliminating pollution of land, air, or water by substances, heat, or sound.
   6. For the purposes of subchapter 4 of this chapter only, in addition to the foregoing, the conduct of any trade or business that is eligible for tax-exempt financing under the U.S. Internal Revenue Code.
   7. For purposes of subchapter 4 of this chapter only, transporting of goods, materials, or agricultural products for sale or distribution or the maintenance of safety standards in connection therewith, including railroad terminals, trucking terminals, and airport facilities.
   8. Use as a small business incubator facility.
   9. Processing or converting post-consumer materials into industrial feed stocks, or manufacturing products from these feed stocks, or both, excluding the converting of recyclable materials into a fuel or fuel product. As used in this subdivision, "post-consumer materials" means only those products generated by a business or a consumer that have served their intended end uses, and that have been separated or diverted from solid waste.
   10. Travel and tourism projects and enterprises, and related recreational activities, provided that the project or enterprise will maintain a reasonable level of full-time employment throughout the year consistent with the size and nature of the business and general business custom in the industry.
   11. The business of information technology, or the collection, processing, or management of data, documents, or records.
   12. A captive or commercial insurance underwriter, a mortgage, commercial, or consumer credit provider, or an entity engaged in underwriting or brokering services.
   13. A renewable energy plant, as defined in 30 V.S.A. § 8002 , if the construction of the plant requires a certificate of public good under 30 V.S.A. § 248 and all or part of the electricity generated by the plant will be under contract to a Vermont electric distribution utility.
   14. Industrial park planning, development, or improvement.
   15. For purposes of subchapter 5 of this chapter, a telecommunications plant, as defined in 24 V.S.A. § 1911(2) , owned by a municipality individually or in concert with one or more other municipalities as a communications union district established under 30 V.S.A. chapter 82.
   16. Any combination of the foregoing activities, uses, or purposes. An eligible facility may include structures, appurtenances incidental to the foregoing such as utility lines, storage accommodations, offices, dependent care facilities, or transportation facilities.
7. "Industrial park" means an area of land planned and designed as a location for one or more industrial buildings, including adequate access roads, utilities, and other services necessary for eligible facilities.
8. "Industrial Park Planning and Development" means the basic architectural and engineering services needed to determine site and land use feasibility, and the planning and carrying out of land improvements necessary to make industrial land usable.
9. "Insurance contract" means a contract insuring mortgage payments under subchapter 2 of this chapter.
10. "Local Development Corporation" means any nonprofit organization incorporated in the State for the purpose of fostering, encouraging, and assisting the physical location of business enterprises within the State and having as its principal purpose the industrial and economic development of one or more political subdivisions, and shall include the Northeastern Vermont Development Association and any State development company organized under subdivision 216(13) of this title; however, in addition to the foregoing, for the purpose of providing assistance to small business incubator facilities, any nonprofit organization that enters into a written agreement with the Authority to establish, operate, and administer a small business incubator facility, including municipalities, local or regional nonprofit development corporations, and higher educational institutions, shall have the rights and obligations of a local development corporation under this chapter.
11. "Maturity date," as used in subchapter 2 of this chapter, means the date upon which the note or other evidence of indebtedness secured by a mortgage would be extinguished if paid in accordance with the mortgage payments.
12. "Mortgage," as used in subchapter 2 of this chapter, means a first mortgage upon an eligible facility given by a mortgagor, as herein defined, to secure the repayment of amounts borrowed to pay costs of a project.
13. "Mortgage payments," as used in subchapter 2 of this chapter, means the periodic payments called for by a mortgage that shall cover lease land rentals, if any, mortgage insurance premiums, interest, installments of principal, taxes and assessments, hazard insurance payments, and any other payments called for in the mortgage.
14. "Mortgagee," as used in subchapter 2 of this chapter, means the original lender under a mortgage and its successors and assigns if approved by the Authority.
15. "Mortgagor," as used in subchapter 2 of this chapter, means the original borrower under a mortgage or a security agreement and its successors and assigns, if approved by the Authority.
16. "Municipality" means a city, town, or incorporated village.
17. "Political subdivision" means a city, town, incorporated village, or county.
18. "Project" or "eligible facility" means the creation, establishment, acquisition, construction, expansion, improvement, reclamation, or renovation of an eligible facility.
19. "Project costs" means any costs or expenses reasonably incidental to a project and may without limitation include the costs of:
    1. issuing bonds under subchapter 4 of this chapter to finance a project;
    2. acquiring land, buildings, structures, and facilities, whether by lease, purchase, construction, or otherwise;
    3. acquiring rights in or over land, air, or water;
    4. improving land and improving buildings, structures, and facilities by remodeling, reconstruction, replacement, or enlargement;
    5. acquiring and installing machinery and equipment;
    6. obtaining professional or advisory services;
    7. interest prior to and during construction and until one year after the completion of a project;
    8. creating reserves in connection with the issue of bonds under subchapter 4 of this chapter; and
    9. acquiring or committing to acquire any federally guaranteed security and pledging the proceeds thereof to secure the payment of bonds.
20. "Security document," as used in subchapter 4 of this chapter, means a written instrument establishing the rights and responsibilities of a municipality or the Authority and the holders of bonds issued to finance an eligible facility, and may provide for a trustee for the benefit of those bondholders.  A security document may contain an assignment, pledge, mortgage, or other encumbrance of all or part of the municipality's or Authority's interest in, or right to receive payments with respect to, an eligible facility under a financing document and may bear any appropriate title.  A financing document and a security document may be combined as one instrument.
21. "Speculative building" means a basic structure of flexible design erected by a local development corporation for eventual sale or lease to a purchaser or tenant requiring eligible facilities.
22. "Tenant" means the tenant or occupier of an eligible facility; or small business incubator facility.
23. "User," as used in subchapter 4 of this chapter, means the person or local development corporation that is:
    1. entitled to the use or occupancy of an eligible facility or is lessor to the person entitled to the use or occupancy of an eligible facility; and
    2. primarily responsible for making payments sufficient to meet debt service on the bonds issued to finance the facility.
24. "Processing" means to subject a product to a particular method, system, or technique of preparation, handling, or other treatment designed to effect a particular result.
25. "Federally guaranteed security" means any security, investment, or evidence of indebtedness that is either directly or indirectly insured, or guaranteed, in whole or in part, as to the repayment of principal or interest, or both, by the United States or any instrumentality thereof.
26. "Federally insured project loan" means any loan to finance or refinance the cost of a project that is either directly or indirectly insured or guaranteed, in whole or in part, as to the repayment of principal or interest or both by the United States or any instrumentality thereof, or any commitment by the United States or any instrumentality thereof to so insure or guarantee such a loan.
27. "Small business incubator facility" means a building, group of buildings, or part of a building where small and growing businesses may obtain small units of space available for purchase or lease at below market rates or on flexible terms, shared office support services, and financial and general business management advice and assistance.
28. "Loan," for the purposes of subchapters 5, 7, and 10 of this chapter, means a loan, or a financing lease, provided that such lease transfers the ownership of the leased property to the lessee following the payment of all required lease payments as specified in the lease agreement.

    Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 1, eff. March 27, 1975; 1975, No. 18 7 (Adj. Sess.), § 1; 1975, No. 217 (Adj. Sess.), §§ 5, 7; 1977, No. 52 , § 1, eff. April 22, 1977; 1981, No. 37 , § 1; 1981, No. 54 , §§ 1, 6, 7, 12, eff. April 28, 1981; 1983, No. 33 , § 1, eff. April 22, 1983; 1983, No. 38 , § 1; 1983, No. 159 (Adj. Sess.), § 1, eff. April 14, 1984; 1985, No. 136 (Adj. Sess.), §§ 2-5, eff. April 24, 1986; 1989, No. 237 (Adj. Sess.), § 1; 1991, No. 202 (Adj. Sess.), § 9, eff. May 27, 1992; 1991, No. 212 (Adj. Sess.), §§ 1-3, eff. May 27, 1992; 1993, No. 89 , §§ 2, 3, eff. June 15, 1993; 1995, No. 46 , §§ 2, 3; 1995, No. 184 (Act. Sess.), § 5; 2005, No. 61 , § 5; 2013, No. 161 (Adj. Sess.), § 72; 2013, No. 199 (Adj. Sess.), § 36; 2015, No. 41 , § 22, eff. June 1, 2015; 2015, No. 51 , § E.2, eff. June 3, 2015; 2015, No. 56 , § 14.

§ 213. Authority; organization.

1. The Vermont Economic Development Authority is hereby created and established as a body corporate and politic and a public instrumentality of the State. The exercise by the Authority of the powers conferred upon it in this chapter constitutes the performance of essential governmental functions.
2. The Authority shall have 15 voting members consisting of the Secretary of Commerce and Community Development, the State Treasurer, the Secretary of Agriculture, Food and Markets, the Commissioner of Forests, Parks and Recreation, and the Commissioner of Public Service, each of whom shall serve as an ex officio member, or a designee of any of the aforementioned; and 10 members, who shall be residents of the State of Vermont, appointed by the Governor with the advice and consent of the Senate. The appointed members shall be appointed for terms of six years and until their successors are appointed and qualified. Appointed members may be removed by the Governor for cause and the Governor may fill any vacancy occurring among the appointed members for the balance of the unexpired term.
3. The Authority shall elect a chair, from among its appointed members, and a vice chair and treasurer from among its members and shall employ a manager who shall hold office at the Authority's pleasure and who, unless he or she is a member of the classified service under 3 V.S.A. chapter 13, shall receive such compensation as may be fixed by the Authority with the approval of the Governor. A quorum shall consist of eight members. Members disqualified from voting under section 214 of this title shall be considered present for purposes of determining a quorum. No action of the Authority shall be considered valid unless the action is supported by a majority vote of the members present and voting and then only if at least five members vote in favor of the action.
4. The Authority shall establish the Agricultural Finance Program Advisory Panel of five members, consisting of two present members of the Authority and three members, who shall be residents of the State of Vermont, selected by the Chair of the Authority.  A quorum shall consist of three members.  The Panel may act by majority vote of the members present and voting.  The Panel shall review the preliminary disposition of applications for loans submitted under the agricultural finance programs of chapter 16 of this title, when so requested by the applicant or by the manager of the Authority.  If the Panel determines that an application should be submitted to the members, or if the Panel is in disagreement about the appropriate disposition of an application, the application and the panel's recommendation shall be submitted to the Authority at its next regularly scheduled meeting.  The Advisory Panel shall also provide advice to the Authority regarding the policies, practices and procedures for the operation of the agricultural programs.
5. Appointed members of the Authority and the Advisory Panel shall be compensated at the rate of $50.00 a day for time spent in the performance of their duties and they shall be reimbursed for necessary expenses incurred in the performance of their duties.
6. The State of Vermont reserves the right, at its sole discretion, and at any time, to alter or change the structure, organization, programs, or activities of the Authority, including the power to terminate the Authority, subject to any limitation on the impairment of contracts entered into by the Authority.
7. Any net earnings of the Authority, beyond that necessary for retirement of the indebtedness or to implement the public purposes or programs of the State of Vermont, shall not inure to the benefit of any person other than the State of Vermont.
8. Upon dissolution of the Authority, title to all property owned by the Authority shall vest in the State of Vermont.
9. The Authority shall study and report back to the Legislature no later than January 15, 1989 on the feasibility of hiring full-time counsel in lieu of retaining outside counsel.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 2, eff. March 27, 1975; 1975, No. 18 7 (Adj. Sess.), § 7; 1977, No. 52 , § 2, eff. April 22, 1977; 1987, No. 203 (Adj. Sess.), § 1, eff. May 27, 1988; 1989, No. 199 (Adj. Sess.), § 1; 1993, No. 89 , § 3(a), eff. June 15, 1993; 1995, No. 190 (Adj. Sess.), § 1(a); 2003, No. 42 , § 2, eff. May 27, 2003; 2013, No. 87 , § 6, eff. June 17, 2013.

§ 214. Members; disqualification.

A member of the Authority may not participate in any decision:

1. Under subchapter 3 of this chapter affecting a local development corporation if the member is a stockholder or member of that corporation;
2. Upon any insurance contract under subchapter 2 of this chapter or loan under subchapter 5 of this chapter, if the member is a member, director, trustee, employee, or officer of; or has any interest direct or indirect in; or owns any stock, bonds, or other liabilities issued by or authorized by the prospective mortgagor, mortgagee, or tenant;
3. Upon a bond issue under subchapter 4 of this chapter if the member is an officer or director of a bank or trust company that is a prospective purchaser of the bonds or a prospective trustee under the trust indenture securing the bonds.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52 , § 3, eff. April 22, 1977.

§ 215. Manager; duties.

The manager shall be the chief administrative officer of the Authority and shall direct and supervise the administrative affairs and technical activities of the Authority in accordance with any rules, regulations, and policies set forth by the Authority. In addition to any other duties, the manager shall:

1. attend all meetings of the Authority, act as its secretary and keep minutes of its proceedings;
2. approve all accounts of the Authority, including accounts for salaries, per diems, and allowable expenses of any employee or consultant thereof, and expenses incidental to the operation of the Authority;
3. make an annual report to the Authority documenting the actions of the Authority, and such other reports as the Authority may request;
4. work closely with the Agency of Commerce and Community Development and provide assistance to the various divisions of that Agency to facilitate the planning and financing of projects;
5. make recommendations and reports, in cooperation with the Agency of Commerce and Community Development, to the Authority on the merits of any proposed project, on the status of local development corporations, and on suitable industrial sites;
6. perform such other duties as may be directed by the Authority in the carrying out of the purposes of this chapter.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1995, No. 190 (Adj. Sess.), § 1(a).

§ 216. Authority; general powers.

The Authority is hereby authorized:

1. To sue and be sued in its own name and plead and be impleaded; service of process upon it in any action shall be made by service upon the Secretary of State either in hand or by leaving a copy of the process at his or her office.
2. To adopt an official seal and alter the same.
3. To adopt and from time to time amend bylaws, rules, and regulations for the calling and conduct of its meetings and for the conduct of its affairs, including regulations relating to applications for financial assistance and disclosure of information supplied to it.
4. To establish reasonable priorities among the types and locations of projects to be undertaken or aided under this chapter, and to use its discretion in the selection and combining of programs to be utilized in the undertaking or aiding of such projects.
5. To maintain its principal office in Washington County and other offices at such place or places as it may designate.
6. To employ such employees, who may be in the classified system under 3 V.S.A. chapter 13 within the discretion of the Authority, and to employ or contract with agents, consultants, legal advisors, and other experts, as may be necessary or desirable for its purposes, to determine the qualifications, duties, and compensation of such employees, agents, consultants, legal advisors, and experts and to utilize the services of other governmental agencies and departments.
7. To contract with the State of Vermont or any agency or political subdivision thereof, public corporations or bodies, private corporations, or individuals for any purposes related to industrial development.
8. To borrow money, make and issue negotiable bonds, notes, commercial paper, and give other evidences of indebtedness or obligations, and give security therefor, including the sale, assignment, or pledge of the Authority's interest in loans. Such obligations may be incurred for any of the Authority's corporate purposes, including the expenses of preparing, issuing, and marketing obligations issued for such purposes, and the establishment of reserve funds, including reserve funds created under section 219 of this title. Such obligations shall be in such form and denominations, and with such terms and provisions, including the maturity date or dates, redemption provisions, and other provisions necessary or desirable. Such obligations shall be either taxable or tax-exempt, and shall be noninterest bearing, or bear interest at such rate or rates, which may be fixed or variable, as may be sufficient or necessary to effect the issuance and sale or resale thereof. The Authority is authorized to enter into such agreements with other persons as the Authority deems necessary or appropriate in connection with the issuance, sale, and resale of such obligations, including without limitation, trust indentures, bond purchase agreements, disclosure agreements, remarketing agreements, agreements providing liquidity or credit facilities, bond insurance, or other credit enhancements in connection with such obligations. The Authority is authorized to resell or retire any such notes prior to the stated maturity thereof.
9. To make such charges against local development corporations as may be mutually agreed upon to assist in meeting the expenses of the Authority incurred under this chapter, including any interest charged by the State Treasurer.
10. To administer its own funds and to invest or deposit funds which are not needed currently to meet the obligations of the Authority.
11. To acquire, hold, and dispose of real and personal property; to enter into all contracts, leases, agreements, and arrangements and to do all lawful acts and things necessary or incidental to the performance of its duties and the execution of its powers under this chapter.
12. To make such payments in lieu of taxes for highway maintenance, fire protection, or for other services as the Authority considers advisable, in the event property owned by the Authority is occupied in whole or in part.
13. To cause to be incorporated in Vermont a nonprofit corporation that will qualify as a State development company under Title 15 of the U.S. Code and rules and regulations adopted pursuant thereto. The voting members of the Authority shall be members of the company and shall constitute the board of directors of the company. The company shall have at least 14 other members selected by the members of the Authority. The company shall be organized and operate under the nonprofit corporation laws of the State of Vermont to the extent not inconsistent herewith. The Authority shall have the power to contract with the company to provide staff and management needs of the company. The Authority is authorized to contribute to the capital of the company in an amount the Authority determines is necessary and appropriate.
14. To incorporate one or more nonprofit corporations in Vermont to fulfill the goals of this chapter. Such corporation shall be empowered to borrow money and to receive and accept gifts, grants, or contributions from any source, provided that such gifts, grants, or contributions are not less than $5,000.00 from any one source for the period of one year and provided that such nonprofit corporation provides business loans of not less than $2,500.00 to any particular entity or individual. The voting members of the Authority shall be directors of the corporation. The corporation shall be organized and operate under the nonprofit corporation laws of the State of Vermont. The Authority may contract with the corporation to provide staff and management needs of the company. The Authority may contribute to the capital of the corporation in an amount the Authority determines is necessary and appropriate.
15. To delegate to loan officers the power to review, approve, and make loans under this chapter, subject to the approval of the manager, and to disburse funds on such loans, subject to the approval of the manager.
16. To cause to be formed in Vermont a for-profit limited partnership, the purpose of which shall be to invest funds in commercial and agricultural enterprises that create job opportunities and support economic development. The Authority's investment in the partnership may not exceed $2,000,000.00. To manage the operations of and attract investors to the partnership, the Authority is further authorized to cause to be formed in Vermont a for-profit limited liability company. The Authority's investment in the limited liability company shall be determined by the Authority.
17. To contribute to the capital of the Vermont Agricultural Credit Corporation established pursuant to chapter 16A of this title in an amount the Authority determines is necessary and appropriate.
18. To contribute to the capital of the Vermont Sustainable Energy Loan Fund established under subchapter 13 of this chapter in an amount the Authority determines is necessary and appropriate.

    Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52 , §§ 4, 10, eff. April 22, 1977; 1977, No. 222 (Adj. Sess.), § 5, eff. July 2, 1978; 1981, No. 54 , § 2, eff. April 28, 1981; 1983, No. 33 , §§ 2, 3, eff. April 2, 1983; 1993, No. 210 (Adj. Sess.), § 229a; 1995, No. 46 , §§ 4, 5, eff. April 20, 1995; 1995, No. 184 (Act. Sess.), § 4; 1999, No. 131 (Adj. Sess.), § 1; 2003, No. 67 , §§ 1, 2, eff. June 16, 2003; 2005, No. 137 (Adj. Sess.), § 1; 2011, No. 110 (Adj. Sess.), § 5, eff. May 8, 2012; 2013, No. 87 , § 3, eff. June 17, 2013; 2015, No. 157 (Adj. Sess.), § A.2, eff. June 2, 2016.

§ 217. Records; annual report; audit.

1. The Authority shall keep an accurate account of all its activities and of all its receipts and expenditures. Information and records in connection with an application for an insurance contract under subchapter 2 of this chapter shall be preserved for three years after the application has been denied or, if the application is accepted, for three years after the mortgage has been discharged and thereafter until the Authority orders them destroyed.
2. Prior to February 1 in each year, the Authority shall submit a report of its activities for the preceding fiscal year to the Governor and to the General Assembly. The report shall set forth a complete operating and financial statement covering its operations during the year. The Authority shall cause an audit of its books and accounts to be made at least once in each year by a certified public accountant and its cost shall be considered an expense of the Authority and a copy 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.
3. The Auditor of Accounts of the State and his or her authorized representatives may at any time examine the accounts and books of the Authority including its receipts, disbursements, contracts, funds, investments, and any other matters relating to its financial statements.
4. At such time as the Authority has exhausted all rights and remedies to enforce the terms of a financing document or mortgage serving as security for a loan, the identity of the borrower and the outstanding principal balance of the loan shall become a public record.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 3, eff. March 27, 1975; 1999, No. 131 (Adj. Sess.), § 1a; 2013, No. 142 (Adj. Sess.), § 16.

§ 217a. Application.

Among such other things as may be required by the Authority, any application for financing or for mortgage insurance under this chapter shall state in detail on the application the nature and purpose of the business and its products for which the loan, revenue bonds or mortgage insurance is intended to benefit.

Added 1983, No. 33 , § 3a, eff. April 22, 1983; amended 1987, No. 203 (Adj. Sess.), § 3, eff. May 27, 1988.

§ 218. Construction.

1. The powers conferred by this chapter are supplemental and alternative to other powers conferred by law.
2. No notice, proceedings, or approval, including licensure under 8 V.S.A. chapter 73, shall be required with respect to any action taken under this chapter, except as provided in this chapter.
3. Purchases and contracts required for the establishment or expansion of an eligible facility may be made or let without regard to any provision of law relating to public purchases or contracts.
4. This chapter shall be liberally construed in order to effect its purposes.
5. The provisions of this chapter are severable, and the invalidity of any provision or provisions of this chapter shall not affect the validity of any other provision or provisions of this chapter.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1987, No. 203 (Adj. Sess.), § 17, eff. May 27, 1988; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 219. Reserve funds.

1. The Authority may create and establish one or more special funds, herein referred to as "debt service reserve funds," and shall pay into each such debt service reserve fund:
   1. Any monies appropriated and made available by the State for the purpose of such funds.
   2. Any proceeds of the sale of notes or bonds, to the extent provided in the resolution or resolutions of the Authority authorizing the issuance thereof.
   3. Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations, which may be made available to the Authority for the purpose of such fund from any other source or sources.

      All monies or financial instruments held in any debt service reserve fund, except as hereinafter provided, shall be used, as required, solely for the payment of the principal of the bonds secured in whole or in part by such fund or of the sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity or to reimburse the issuer of a liquidity or credit facility, bond insurance, or other credit enhancement for the payment by such party of any of the foregoing amounts on the Authority's behalf; provided, however, that the monies or financial instruments in any such fund shall not be drawn upon or withdrawn therefrom at any time in such amounts as would reduce the amount of such funds to less than the debt service reserve requirement established by resolution of the Authority for such fund as hereafter provided except for the purpose of making with respect to bonds secured in whole or in part by such fund payments, when due, of principal, interest, redemption premiums, and the sinking fund payments hereinafter mentioned for the payment of which other monies of the Authority are not available. Any income or interest earned by, or increment to, any debt service reserve fund due to the investment thereof may be transferred by the Authority to other funds or accounts of the Authority to the extent it does not reduce the amount of such debt service reserve fund below the debt service reserve requirement for such fund.

2. The Authority shall not at any time issue bonds or notes secured in whole or in part by a debt service reserve fund if upon the issuance of such bonds or notes the amount in such debt service reserve fund will be less than the debt service reserve requirement established by the resolution of the Authority for such fund, unless the Authority at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds or notes so to be issued, or from other sources, an amount which together with the amount then in such fund, will not be less than the debt service reserve requirement established for such fund. The debt service reserve requirement for any debt service reserve fund shall be established by resolution of the Authority prior to the issuance of any bonds or notes secured in whole or in part by such fund and shall be the amount, determined by the Authority to be reasonably required in light of the facts and circumstances of the particular bond issue.
3. In computing the amount of the debt service reserve funds for the purpose of this section, securities in which all or a portion of such funds shall be invested shall be valued at par if purchased at par or at amortized value, as such term is defined by resolution of the Authority, if purchased at other than par.
4. In order to ensure the maintenance of the debt service reserve requirement in each debt service reserve fund established by the Authority, there may be appropriated annually and paid to the Authority for deposit in each such fund, such sum as shall be certified by the Chair of the Authority, to the Governor, the President of the Senate, and the Speaker of the House, as is necessary to restore each such debt service reserve fund to an amount equal to the debt service reserve requirement for such fund. The Chair shall annually, on or about February 1, make, execute, and deliver to the Governor, the President of the Senate, and the Speaker of the House, a certificate stating the sum required to restore each such debt service reserve fund to the amount aforesaid, and the sum so certified may be appropriated, and if appropriated, shall be paid to the Authority during the then current State fiscal year. The principal amount of bonds or notes outstanding at any one time and secured in whole or in part by a debt service reserve fund to which State funds may be appropriated pursuant to this subsection shall not exceed $181,000,000.00, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the Authority in contravention of the Constitution of the United States.

   Added 1995, No. 184 (Act. Sess.), § 4b; amended 2003, No. 67 , § 3, eff. June 16, 2003; 2009, No. 78 (Adj. Sess.), § 15, eff. April 15, 2010; 2011, No. 110 (Adj. Sess.), § 3, eff. May 8, 2012; 2013, No. 87 , § 7, eff. June 17, 2013; 2015, No. 157 (Adj. Sess.), § A.3, eff. June 2, 2016; 2017, No. 157 (Adj. Sess.), § 1; 2019, No. 79 , § 17, eff. June 20, 2019.

§ 220. Transfer from Indemnification Fund.

The State Treasurer shall transfer from the Indemnification Fund created in former section 222a of this title to the Authority all current and future amounts deposited to that Fund.

Added 2015, No. 157 (Adj. Sess.), § A.4, eff. June 2, 2016.

§§ 221-229. Repealed. 2015, No. 157 (Adj. Sess.), § A.7(b), eff. June 2, 2016.

§ 231. Assistance to local development corporations.

Upon application of a local development corporation, the Authority may loan money to that local development corporation, upon such terms and conditions as it may prescribe, for the purpose of industrial park planning and development, for constructing or improving a speculative building or small business incubator facility on land owned or held under lease by the local development corporation, for purchase or improvement of existing buildings suitable for or which can be made suitable for industrial or small business incubation facility purposes and for the purchase of land in connection with any of the foregoing. Before the local development corporation receives such funds for such purposes from the Authority, it shall give to the Authority security for the repayment of the funds. The security shall be in such form and amounts as the Authority may determine and shall, in each instance, include a first mortgage on the land, or the leasehold, building, and appurtenances financed by such funds. Loans by the Authority to local development corporations for the construction of speculative buildings or improvements to those buildings shall be repaid in full, including interest and other charges, within 90 days after the building is occupied if the building is being sold, or within five years after the property is occupied if the building is being leased, or within such period of time deemed reasonable by the Authority. Loans by the Authority to local development corporations for the construction, purchase, or improvement of small business incubator facilities shall be repaid in full, including interest and other charges, within ten years after the property is occupied.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52 , 1986 § 8, eff. April 22, 1977; 1985, No. 136 (Adj. Sess.), § 7, eff. April 24, 1991, No. 76 , § 1.

§ 232. Issuance of loans for speculative buildings and small business incubator facilities.

Before issuing any loan under this subchapter for construction of a speculative building or small business incubator facilities and the purchase of land in connection therewith, the Authority, or the Authority's loan officer pursuant to the provisions of subdivision 216(15) of this title, shall determine and incorporate the following findings in its minutes. Such findings when adopted by the Authority shall be conclusive:

1. The project is within the scope of this chapter, will be of public use and benefit, and may reasonably be expected to create new employment opportunities.
2. The proposed site for the speculative building or small business incubator facilities will be located on adequate land owned or to be acquired by the local development corporation or leased by the local development corporation on terms satisfactory to the Authority.
3. An adequate access road from a public highway is provided to the proposed site and that such utilities as water, sewer, and power facilities are available, or will be available when the speculative building or small business incubator facilities is completed.
4. The project plans comply with all applicable environmental, zoning, planning and sanitary laws and regulations of the municipality where it is to be located and of the State of Vermont.
5. The local development corporation is responsible and has presented evidence to demonstrate its ability to carry out the project as planned.
6. Evidence has been presented demonstrating the feasibility of the site as a location for business, and additional evidence has been presented that an adequate supply of labor is available within the labor market area to serve a business located on the site or in the small business incubator facility.
7. The local development corporation has made adequate provisions for insurance protection of the building while it is unoccupied and suitable arrangements have been made for fire protection and maintenance while it is unoccupied.
8. The project will be without unreasonable risk of loss to the Authority.
9. The local development corporation is unable to secure on reasonable terms the funds required for the project without the assistance of the Authority, or in the alternative, the making of the loan will serve as a substantial inducement for the establishment or expansion of a speculative building or small business incubator.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1985, No. 136 (Adj. Sess.), § 8, eff. April 24, 1986; 1991, No. 76 , § 2; 1995, No. 46 , § 7, eff. April 20, 1995.

§ 233. Depressed areas.

The Authority shall give preference to the areas within labor market districts declared to be economically depressed areas as defined by the Vermont Agency of Commerce and Community Development or the Vermont Department of Labor, or to the area that is a designated job development zone under chapter 29, subchapter 2 of this title.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1981, No. 66 , § 5(a), eff. May 1, 1981; 1985, No. 172 (Adj. Sess.), § 2; 1995, No. 190 (Adj. Sess.), § 1(a); 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.

§ 234. The Vermont Jobs Fund.

1. There is hereby created the Vermont Jobs Fund, hereinafter called the Fund, which shall be used by the Authority as a nonlapsing fund for the purposes of subchapters 3, 5, 9, and 10 of this chapter. To it shall be charged all operating expenses of the Authority not otherwise provided for and all payments of interest and principal required to be made by the Authority under this subchapter. To it shall be credited any appropriations made by the General Assembly for the purposes of subchapters 3, 5, 9, and 10 of this chapter and all payments required to be made to the Authority under subchapters 3, 5, 9, and 10 of this chapter, it being the intent of this section that the Fund shall operate as a revolving fund whereby all appropriations and payments made thereto, unless required to repay notes under the following section, may be applied and reapplied for the purposes of subchapters 3, 5, 9, and 10 of this chapter. Monies in the Fund may be loaned at interest rates to be set by the Authority for the following:
   1. Loans to local development corporations under this subchapter, provided that if the funds for any such loan are derived from the issue of notes to the State Treasurer under section 235 of this chapter, the loan shall bear interest at a rate not less than the rate on the notes.
   2. Direct mortgage loans as described in subchapter 5 of this chapter.
   3. Loans for the financing of export activities under subchapter 9 of this chapter.
   4. Other loans as the Authority may prescribe under subchapter 10 of this chapter.
2. In order to provide monies in the Fund for loans under this chapter, the Authority may issue notes for purchase by the State Treasurer as provided in section 235 of this chapter.
3. Monies in the Fund may be loaned to the Vermont Agricultural Credit Program to support its lending operations as established in chapter 16A of this title at interest rates and on terms and conditions to be set by the Authority to establish a line of credit in an amount not to exceed $100,000,000.00 to be advanced to the Vermont Agricultural Credit Program to support its lending operations as established in chapter 16A of this title.
4. Monies in the Fund may be loaned to the Vermont Small Business Development Corporation to support its lending operations as established pursuant to subdivision 216(14) of this title at interest rates and on terms and conditions to be set by the Authority.
5. Monies in the Fund may be loaned to the Vermont 504 Corporation to support its lending operations as established pursuant to subdivision 216(13) of this title at interest rates and on terms and conditions to be set by the Authority.
6. The Authority may loan money from the Fund to the Vermont Sustainable Energy Loan Fund established under subchapter 13 of this chapter at interest rates and on terms and conditions set by the Authority.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1985, No. 81 , § 3; 1995, No. 46 , § 8, eff. April 20, 1995; 2003, No. 7 , § 8, eff. April 25, 2003; 2003, No. 67 , § 4, eff. June 16, 2003; 2009, No. 78 (Adj. Sess.), § 16, eff. April 15, 2010; 2013, No. 87 , § 4; 2015, No. 157 (Adj. Sess.), § A.5, eff. June 2, 2016.

§ 235. Repealed. 1995, No. 184 (Adj. Sess.), § 4a, eff. July 1, 1997.

§ 236. Taxes.

1. While a part of a building or industrial park owned by a local development corporation and subject to a mortgage to the Authority or the State of Vermont under this subchapter remains unoccupied, that portion that remains unoccupied shall be exempt from all taxes and special assessments of the State or a municipality.  Instead of taxes, payments shall be made by the local development corporation to the municipality in which the speculative building or industrial park is located for highway maintenance, fire protection, or for other services.
2. Any property to which the Authority holds title by reason of foreclosure upon a mortgage or other security given by a local development corporation in connection with a loan made under this subchapter, or voluntary conveyance in lieu thereof, shall, as long as it is not leased or rented, be exempt from all taxes and special assessments of the State and all local municipal property taxes for the remaining balance of the tax year in which title becomes vested in the Authority and the entire next succeeding year, provided however, that thereafter the Authority shall pay 50 percent of the local municipal property taxes annually assessed against such property during the term of the Authority's ownership.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52 , § 9, eff. April 22, 1977; 1981, No. 54 , § 14, eff. April 28, 1981.

§ 237. Issuing of loans for industrial park planning and development projects.

Before issuing any loan under this subchapter for industrial park planning and development, and the purchase of land in connection therewith, the Authority shall determine and incorporate in its minutes the findings that:

1. The proposed industrial park is on adequate land owned or to be owned by the local development corporation or leased by the local development corporation on terms satisfactory to the Authority.
2. An adequate access road from a public highway is provided to the proposed site, and utilities, including water, sewer, and power facilities, are available or will be available for any future tenant located in the park.
3. The total industrial park will be planned by architects and engineers acceptable to the Authority.
4. No more than 80 percent of the fair market value of the industrial park, as shown by appraisal by an appraiser acceptable to the Authority, is to be financed under the loan.
5. The park project is within the scope of this chapter, will be of public use and benefit, and may reasonably be expected to create new employment opportunities.
6. The park project complies with all applicable environmental, zoning, planning and sanitary laws and regulations of the municipality in which it is to be located and of the State of Vermont.
7. The local development corporation is responsible and has presented evidence to demonstrate its ability to carry out the park project as planned.
8. Evidence has been presented demonstrating the feasibility of the site as a location for industry, and additional evidence has been presented that an adequate supply of labor is available within the labor market area to serve an industry located on the site.
9. The park project will be without unreasonable risk of loss to the Authority, and the local development corporation is unable to secure on reasonable terms the funds required for the project without the assistance of the Authority.  Such findings when adopted by the Authority shall be conclusive.

   Added 1973, No. 197 (Adj. Sess.), § 1.

§ 241. Powers of municipalities.

Municipalities shall have the following powers in addition to any other powers given them by law:

1. To engage in projects under this subchapter within the municipality or partially within the municipality but entirely within the State, to acquire ownership or possessory interests in eligible facilities and related property, and to dispose of them;
2. To issue bonds to pay project costs, or to reimburse a user or a related person for payments for project costs made before or after the bonds are issued, or to refund bonds previously issued;
3. To execute financing documents and security documents and to perform obligations and exercise powers created by them;
4. In the event of default by a user under a financing document, but only to the extent authorized by the financing document or security document, to dispose of all or part of the eligible facility by sale or otherwise for the benefit of the bondholders under the security document;
5. To make contracts or take any other action that is necessary or desirable in connection with the exercise of the foregoing powers. Nothing in this chapter shall be construed to authorize a municipality to operate an eligible facility itself or to conduct any business enterprise with it.
6. To acquire and to enter into commitments to acquire any federally guaranteed security and to pledge or otherwise use any such federally guaranteed security in such manner as the Authority shall approve to secure or otherwise provide a source of repayment on any of its bonds or to enter into any appropriate agreement with one or more users whereby the municipality may make a loan to any such user for the purposes of enabling such user to fund or refund directly or indirectly, the cost of acquiring or entering into commitments to acquire any federally guaranteed security; provided, however, that the federally guaranteed security is evidence of a federally insured project loan or, if not such evidence, that the Authority determines that the federally guaranteed security has been issued to pass through a federally insured project loan.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 8, eff. March 27, 1975; 1981, No. 54 , § 8, eff. April 28, 1981; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 242. Financing documents.

1. A financing document shall:
   1. provide for payments by the user at such times and in such amounts as are necessary in order to pay the debt service on all bonds issued to finance the project as they become due; and
   2. obligate the user to pay all the costs and expenses of operation, maintenance, upkeep, and insurance of the eligible facility.
2. A financing document may:
   1. provide for payments by the user that include amounts in addition to the amounts required to pay debt service;
   2. obligate a user to make payments before the eligible facility exists or becomes functional and to make payments after the eligible facility has ceased to exist or be functional to any extent and from any cause whatsoever;
   3. obligate a user to make payments regardless of whether the user is in possession or is entitled to be in possession of the eligible facility;
   4. allocate responsibility between the municipality and the user for making purchases and contracts required for the project;
   5. contain an option for the user to acquire any ownership or possessory interest that the municipality may have in the eligible facility for nominal consideration upon payment of the bonds or upon the user's making adequate and secure provision for their payment and provide for the automatic transfer of the municipality's interest in the facility upon the effective exercise of the option;
   6. provide that some or all of the user's obligations shall be unconditional and shall be binding and enforceable in all circumstances whatsoever notwithstanding any other provision of law; and
   7. contain such other provisions and covenants relating to the use, maintenance, repair, insurance, and replacement of the eligible facility as the municipality and the user deem necessary for the protection of themselves or others.

      Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 9, eff. March 27, 1975; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 243. Security documents.

1. An assignment, pledge, mortgage or other encumbrance of all or part of a municipality's right to receive payments with respect to an eligible facility contained in a security document shall be fully effective from the time when the security document is executed with or without any subsequent physical delivery or segregation of the money and without any filing or recording under the Uniform Commercial Code or otherwise.
2. A security document may contain covenants of the municipality as to:
   1. the creation and maintenance of reserves;
   2. the issuance of other bonds with respect to the eligible facility;
   3. the custody, investment and application of monies;
   4. the disposition of insurance or condemnation proceeds;
   5. the use of surplus bond proceeds;
   6. action by the municipality in the event of a default by the user under the financing document;
   7. the subjecting of additional property to the lien of the security document;
   8. any other matter which affects the security for the bonds in any way;
   9. pledging any federally guaranteed security and monies received therefrom whether such security is acquired by the municipality or by a user to secure the payment of the bonds.
3. A security document may limit the rights of bondholders to enforce obligations of the municipality thereunder or under the financing document.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 10, eff. March 27, 1975; 1981, No. 54 , § 10, eff. April 28, 1981; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 244. Bonds.

1. Bonds authorized under this subchapter may, without limitation, be issued:
   1. in one or more series of one or more denominations and bearing one or more rates of interest;
   2. in bearer form or registered form with or without privileges of conversion and reconversion from one form to the other;
   3. payable in serial installments or as term bonds, and any series may consist of both types of bonds, provided that all of the bonds of every series shall mature no later than 40 years after their dates; and
   4. subject to redemption prior to maturity, with or without the payment of any redemption premium, in accordance with the provisions of the security document.
2. Bonds shall bear the manual signature of the treasurer of the municipality and the manual or facsimile signature or signatures of the mayor or a majority of the selectboard or trustees as the case may be.  Interest coupons, if any, shall bear the facsimile signature of the treasurer.  If the municipality has a corporate seal, bonds shall bear the seal or a facsimile of the seal.  Bonds executed in accordance with this subchapter shall be valid notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon shall have ceased to hold office.
3. Every bond shall bear a statement on its face that it does not constitute an indebtedness of the municipality except to the extent permitted by this subchapter.  Bonds may be sold at public or private sale by the officers authorized to sign them.  The price at which bonds are sold may be par or may be more or less than par, but the original purchaser of the bond shall be obligated to pay accrued interest for the period, if any, from the date of the bonds to the date of delivery.  All bonds issued under this subchapter and interest coupons applicable thereto, if any, shall be deemed to be negotiable instruments and to be investment securities under the Uniform Commercial Code.
4. No purchaser of bonds shall be in any way bound to see to the proper application of the proceeds thereof.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 11, eff. March 27, 1975.

§ 245. Municipal proceedings.

All actions of a municipality in the exercise of its powers with respect to a project and the financing thereof shall be authorized by resolution adopted by majority vote of all of the members of its governing body. Unless otherwise provided in the resolution, or in the city charter in the case of a city, each resolution shall take effect upon its passage. The terms and details of any transaction may be delegated by the governing body to those authorized by the governing body to enter into the transaction on behalf of the municipality.

Added 1973, No. 197 (Adj. Sess.), § 1.

§ 246. Approval of Authority.

No municipality may acquire any interest in an eligible facility or execute any financing document or security document or issue any bonds under this subchapter without the approval of the Authority, but nothing herein contained shall prevent a municipality from giving preliminary official approval of a proposed project and the financing thereof. In applying for approval by the Authority the municipality shall furnish the Authority with any information required, including drafts of the proposed financing document and security document. The Authority shall not give its approval unless it determines and incorporates findings in its minutes that:

1. the project and its proposed financing are feasible;
2. the establishment and operation of the eligible facility will either:
   1. create or preserve employment opportunities directly or indirectly within the State; or
   2. help to protect the State's physical environment, or will accomplish both purposes;
3. the eligible facility consists of property of a type that may be financed under this subchapter;
4. the proposed user, or if the user as defined under subdivision 212(23) of this chapter is a lessor, then the tenant of said lessor, has the skills and financial resources necessary to operate the eligible facility successfully;
5. the financing and security documents contain provisions such that under no circumstances is the municipality obligated directly or indirectly to pay project costs; debt service; or expenses of operation, maintenance and upkeep of the facility except from bond proceeds or from funds received under the financing or security documents, exclusive of funds received thereunder by the municipality for its own use;
6. the project plans comply with all applicable environmental, zoning, planning, and sanitary laws and regulations of the municipality and of the State of Vermont; and
7. neither the financing document nor the security document purports to create any debt of the municipality with respect to the eligible facility, other than a special obligation of the municipality under this chapter; and
8. the proposed financing of the project by the municipality and the proposed operation and use of the eligible facility will preserve or increase the prosperity of the municipality and of the State or enhance or protect the physical environment of the State and will promote the general welfare of citizens of the State;
9. for a project involving an eligible facility as defined in subdivision 212(6)(G) of this chapter, the project has been certified by the Transportation Board as likely to aid in the retention of existing industrial or agricultural enterprises in the State or in the development and increase of such enterprises, and if such project consists in whole or in part of vehicles, rolling stock or other modes of conveyance, there is reasonable assurance that the same will continue to be based in or operated from the municipality and contribute to the prosperity of the municipality and of the State; and
10. the findings when adopted by the Authority shall be conclusive.

    Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 12, eff. March 27, 1975; 1981, No. 54 , § 15, eff. April 28, 1981; 1983, No. 38 , § 2; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 247. Obligations of the municipality.

No financing or security document, bond, or other instrument issued or entered into under this subchapter shall in any way obligate a municipality to use its taxing power for any purpose in relation to an eligible facility financed under this subchapter. No municipality may pay or promise to pay any debt or meet any financial obligation to any person at any time in relation to an eligible facility financed under this subchapter, except from monies received or to be received under the provisions of a financing or security document entered into under this subchapter or except as may be required by other provisions of law. Bonds issued under the subchapter shall not be deemed indebtedness of the municipality for the purposes of any debt limit.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 13, eff. March 27, 1975; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 248. Trustees and trust funds.

A state or national chartered bank, Vermont bank, or Vermont trust company may serve as trustee for the benefit of bondholders under a security document; and the trustee may at any time own all or any part of the bonds issued under that security document, unless otherwise provided therein. All monies received or held by a municipality or by a trustee pursuant to a financing or security document, other than funds received or held by the municipality for its own use, shall be deemed to be trust funds and shall be held and applied solely in accordance with the applicable document, but the person paying the money to the municipality or the trustee shall not be in any way bound to see to its proper application.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 14, eff. March 27, 1975.

§ 249. Remedies.

Except as provided in any financing or security document entered into or any bond issued under this subchapter, each of the parties to the financing or security document or any bondholder may enforce the obligation of any other person to him or her under the bond or instrument by appropriate legal proceedings in a court of competent jurisdiction. A receiver may be appointed for an eligible facility in any such proceeding.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 15, eff. March 27, 1975; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 250. Bonds exempt from taxation.

All bonds issued under this subchapter and the income therefrom shall be exempt from taxation by the State of Vermont and all of its political subdivisions, agencies, or instrumentalities, except that bonds shall not be exempt from inheritance, transfer, and estate taxes or taxes in the nature thereof.

Added 1973, No. 197 (Adj. Sess.), § 1.

Cross References

Cross references. Income taxes, see 32 V.S.A. § 5811 et seq.

Inheritance, transfer and estate taxes, see 32 V.S.A. § 7101 et seq.

Property taxes, see 32 V.S.A. § 3401 et seq.

§ 251. Taxation of eligible facilities.

All real and personal property comprising an eligible facility financed under this subchapter shall be set in the grand list and taxed to the tenant of the facility as if the tenant were the owner of the property in fee.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 252. Bonds eligible for investment.

Bonds issued under this subchapter shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity; such bonds shall likewise be legal investments for all public officials authorized to invest public funds. No person offering to buy or sell or buying or selling the bonds shall be required to obtain any license or register any transaction in connection with them.

Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 16, eff. March 27, 1975.

§ 253. State projects.

1. The State of Vermont may engage in projects within the state in accordance with the provisions of this subchapter.  For the purposes of this section and section 254 of this title:
   1. The word "municipality" as used in the sections of this subchapter other than this section shall mean the "State of Vermont";
   2. The provisions of section 245 of this title shall not apply; and
   3. The provisions of this subchapter other than this section and section 254 of this title shall, where appropriate, be deemed to be modified or superseded by the provisions of this section and section 254 of this title.
2. For the purposes of engaging in a project, the Authority shall act in the name of the State and on its behalf as its agent and instrumentality for the execution of financing documents, security documents, bonds, and other appropriate instruments or for the taking of any action with respect to a project financed in whole or in part by the issue of bonds under section 254 of this title.
3. Title to or possessory interest in any eligible facility that is financed in whole or in part by the issue of bonds pursuant to section 254 of this title may be taken and held in the name of the State. In performing its functions under this section, the Authority may exercise any and all powers conferred upon municipalities by this subchapter, but the Authority shall not execute any financing document, security document, or bond with respect to a project until the Authority has made the findings required by section 246 of this title.
4. The Authority shall establish guidelines for the type and location of projects that shall be considered in evaluating applications for financing under this subchapter. These guidelines shall be used to prioritize projects and shall include factors such as the number of permanent jobs created or retained; the wage rates of the jobs created; the availability and suitability of private market financing; the employment multiplier effect; the potential for alleviating unemployment in distressed areas; the potential effect on the revitalization of depressed commercial areas; the potential to stimulate markets for recycled materials to be used as raw materials; whether the project is located in the job development zone as designated under chapter 29, subchapter 2 of this title; and a potential for increasing capital investment. In the consideration of nonmanufacturing projects, priority shall be given to those projects located within areas suffering from the loss of commercial or service enterprises, loss of commercial or service sales, buildings with large vacancy rates, or physically deteriorating structures.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 17, eff. March 27, 1975; 1975, No. 18 7 (Adj. Sess.), § 2; 1983, No. 159 (Adj. Sess.), § 2, eff. April 14, 1984; 1985, No. 172 (Adj. Sess.), § 3; 1991, No. 202 (Adj. Sess.), § 10, eff. May 27, 1992; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 254. State bonds.

1. From time to time the Authority may issue bonds to pay project costs of a project that has been approved by the Authority, to reimburse a user for the payment of costs made before or after the bonds are issued or to refund bonds previously issued.
2. No bonds shall be issued under this section without the prior approval of the Governor or designee and the State Treasurer.
3. Bonds issued under this section shall bear the manual or facsimile signature of the manager or treasurer of the Authority and the manual or facsimile signature of the Chair or Vice Chair of the Authority; provided, however, that at least one of the foregoing signatures shall be manual unless the bonds are to be manually authenticated by a bank or trust company serving as trustee for the bonds.  The details of the bonds shall be fixed by the signing officers in accordance with section 244 of this title.  Bonds shall be sold by the signing officers at public or private sale, and the proceeds thereof shall be paid to the trustee under the security document that secures the bonds.
4. No financing or security document, bond, or other instrument issued or entered into in the name and on behalf of the State under this subchapter shall in any way obligate the State to raise any money by taxation or use other funds for any purpose to pay any debt or meet any financial obligation to any person at any time in relation to an eligible facility financed in whole or in part by the issue of the Authority's bonds under this subchapter, except from monies received or to be received under a financing or security document entered into under this subchapter or except as may be required by any other provision of law. Notwithstanding the provisions of this subsection, the State may accept and expend with respect to an eligible facility any gifts or grants received from any source in accordance with the terms of the gifts or grants.
5. In carrying out the purposes of this subchapter, the Authority may, with the consent of the users, undertake a combined financing of projects for two or more users, and, thereupon, all other provisions of this subchapter shall apply to and for the benefit of the Authority and the participants in such joint financing.
6. Bonds may be issued by the Authority under this subchapter for the purpose of making loans to local development corporations for industrial park planning and development, constructing, or improving a speculative building or small business incubator facility on land owned or held under lease by the local development corporation, purchase or improvement of existing buildings suitable or that can be made suitable for industrial or business incubation purposes, and purchase of land in connection with any of the foregoing.
   1. Before issuing bonds for construction of a speculative building or small business incubator facility and the purchase of land in connection therewith, the Authority shall make the determinations and incorporate in its minutes the findings that:
      1. the project is within the scope of this chapter, will be of public use and benefit, and may reasonably be expected to create new employment opportunities;
      2. the proposed site for the speculative building or small business incubator facility will be located on adequate land owned or to be acquired by the local development corporation or leased by the local development corporation on terms satisfactory to the Authority;
      3. an adequate access road from a public highway is provided to the proposed site and that such utilities as water, sewer, and power facilities are available, or will be available when the speculative building or small business incubator facility is completed;
      4. the project plans comply with all applicable environmental, zoning, planning, and sanitary laws and regulations of the municipality where it is to be located and of the State of Vermont;
      5. the local development corporation is responsible and has presented evidence to demonstrate its ability to carry out the project as planned;
      6. evidence has been presented demonstrating the feasibility of the site as a location for business, and additional evidence has been presented that an adequate supply of labor is available within the labor market area to serve a business located on the site;
      7. the local development corporation has made adequate provisions for insurance protection of the building while it is unoccupied and suitable arrangements have been made for fire protection and maintenance while it is unoccupied;
      8. the project will be without unreasonable risk of loss to the Authority, and the local development corporation is unable to secure on reasonable terms the funds required for the project without the assistance of the Authority;
      9. the financing and security documents contain provisions such that under no circumstances is the State obligated directly or indirectly to pay project costs; debt service; or expenses of operation, maintenance, and upkeep of the facility except from bond proceeds or from funds received under the financing or security documents, exclusive of funds received thereunder by the State for its own use;
      10. neither the financing document nor the security document purports to create any debt of the State with respect to the eligible facility, other than a special obligation of the State under this chapter.
   2. Before issuing bonds for industrial park planning and development and the purchase of land in connection therewith, the Authority shall make the determinations and incorporate in its minutes the findings that:
      1. the proposed industrial park is on adequate land owned or to be owned by the local development corporation or leased by the local development corporation on terms satisfactory to the Authority;
      2. an adequate access road from a public highway is provided to the proposed site, and utilities, including water, sewer, and power facilities, are available or will be available for any future tenant located in the park;
      3. the total industrial park will be planned by architects and engineers acceptable to the Authority;
      4. no more than 80 percent of the fair market value of the industrial park, as shown by appraisal by an appraiser acceptable to the Authority, is to be financed under the loan;
      5. the park project is within the scope of this chapter, will be of public use and benefit, and may reasonably be expected to create new employment opportunities;
      6. the park project complies with all applicable environmental, zoning, planning, and sanitary laws and regulations of the municipality in which it is to be located and of the State of Vermont;
      7. the local development corporation is responsible and has presented evidence to demonstrate its ability to carry out the park project as planned;
      8. evidence has been presented demonstrating the feasibility of the site as a location for industry, and additional evidence has been presented that an adequate supply of labor is available within the labor market area to serve an industry located on the site;
      9. the park project will be without unreasonable risk of loss to the Authority, and the local development corporation is unable to secure on reasonable terms the funds required for the project without the assistance of the Authority;
      10. the financing and security documents contain provisions such that under no circumstances is the State obligated directly or indirectly to pay project costs; debt service; or expenses of operation, maintenance, and upkeep of the facility except from bond proceeds or from funds received under the financing or security documents, exclusive of funds received thereunder by the State for its own use;
      11. neither the financing document nor the security document purports to create any debt of the State with respect to the eligible facility, other than a special obligation of the State under this chapter.
   3. All determinations and findings made by the Authority pursuant to this section shall be conclusive.
7. Bonds issued by the Authority under this subchapter may be secured, in whole or in part, by mortgage insurance under subchapter 2 of this chapter upon the terms and conditions set forth in subchapter 2 and in this subsection.  Such insurance may be in the form of reinsurance or may be for the purpose of creating a loan loss reserve, in a case where the bonds are also secured by the mortgage insurance from another source. The principal amount of bonds so secured outstanding at any time with respect to facilities of any one user, or any related person, in any one municipality, shall not exceed $2,500,000.00. For purposes of this subsection, the term "mortgagee" as used in subchapter 2 of this chapter shall mean the purchasers of the bonds, or where appropriate the trustee under the security document; the mortgage payments to be insured shall be those required to be made by the user under the financing document; and bond proceeds, instead of being used to pay project costs directly, may be used to purchase participation in loans originated by local banks or other responsible financial institutions where the proceeds of such loans have been used to pay project costs.  In authorizing mortgage insurance to secure bonds, the Authority shall make all of the findings and determinations set forth in subsection 221(a) of this title, except that the principal of the mortgage cannot exceed $2,500,000.00.  In authorizing any bonds that are to be secured by mortgage insurance, the Authority shall make all of the findings and determinations set forth in section 246 of this title, and may make the findings set forth in subdivisions 246(5) and (7) of this title, notwithstanding the fact that the mortgage insurance will create a contingent liability of the Authority.  The creation of such contingent liability shall not be deemed to violate the prohibition contained in subsection (d), and the statement required on each bond that it does not constitute an indebtedness of the State may be modified to refer to the mortgage insurance.  Separate series of bonds all of which are secured by mortgage insurance may be combined pursuant to subsection (e) of this section, and the proceeds of any payment of such mortgage insurance may be allocated and applied by the trustee for the benefit of the bondholders in accordance with the terms of the security document providing for the combined financing.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 18, eff. March 27, 1975; 1975, No. 18 7 (Adj. Sess.), § 3; 1981, No. 54 , § 11, eff. April 28, 1981; 1983, No. 33 ,§§ 5, 6, eff. April 22, 1983; 1983, No. 159 (Adj. Sess.), § 3, eff. April 14, 1984; 1985, No. 25 , § 2; 1985, No. 136 (Adj. Sess.), § 10, eff. April 24, 1986; 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 261. Additional powers.

In addition to powers enumerated elsewhere in this chapter, the Authority may:

1. Make loans secured by mortgages, which may be subordinate to one or more prior mortgages, upon application by the proposed mortgagor, who may be a private corporation, partnership, person, or municipality financing an eligible project described in subdivision 212(6) of this title, upon such terms as the Authority may prescribe, for the purpose of financing the establishment or expansion of eligible facilities. Such loans shall be made from the Vermont Jobs Fund established under subchapter 3 of this chapter. The Authority may provide for the repayment and redeposit of such loans in the manner provided hereinafter.
2. Take title by foreclosure to any eligible facility where such acquisition is necessary to protect any loan previously made by the Authority, pay all costs arising out of such foreclosure and acquisition from monies held in the Vermont Jobs Fund, and sell, transfer and convey any such eligible facility to any responsible buyer. If the sale, transfer, and conveyance cannot be effected with reasonable promptness, the Authority may, in order to minimize financial losses and sustain employment, lease the eligible facility to a responsible tenant or tenants.
3. Purchase prior mortgages and make payments on prior mortgages on any eligible facility where the purchase or payment is necessary to protect any loan previously made by the Authority. In addition, the Authority may sell, transfer, convey and assign any such prior mortgage. Monies used by the Authority in the purchase of any prior mortgages, or any payments thereon, shall be withdrawn from the Vermont Jobs Fund, and any monies derived from the sale of any prior mortgages shall be deposited by the Authority in the Vermont Jobs Fund.
4. Purchase and own personal property for the purpose of leasing such personal property under financing leases, which leases transfer the ownership of leased personal property to each lessee following the payment of all required lease payments as specified in each lease agreement.
5. Execute lease agreements pursuant to subdivision (4) of this section.
6. Provide loans and assistance under this subchapter for the planning, development, or improvement of an industrial park or an eligible project within an industrial park.

   Added 1973, No. 197 , (Adj. Sess.), § 1; amended 1975, No. 187 (Adj. Sess.), § 4; 1993, No. 89 , § 3, eff. June 15, 1993; 1995, No. 46 , § 10, eff. April 20, 1995; 2013, No. 199 (Adj. Sess.), § 36; 2015, No. 41 , § 23, eff. June 1, 2015.

§ 262. Findings.

Before making any loan, the Authority shall receive from an applicant a loan application in such form as the Authority may by regulation prescribe, and the Authority, or the Authority's loan officer pursuant to the provisions of subdivision 216(15) of this title, shall determine and incorporate findings in its minutes that:

1. The project is within the scope of this chapter and will increase or maintain employment and expand the economy of the State.
2. The project plans comply with all applicable environmental, zoning, planning, and sanitary laws and regulations of the municipality where it is to be located and of the State of Vermont.
3. The making of the loan will be of public use and benefit.
4. The proposed loan will be adequately secured by a mortgage on real property or equipment, or both.
5. The principal obligation of the Authority's mortgage does not exceed $1,500,000.00, which may be secured by land and buildings or by machinery and equipment, or both; unless:
   1. an integral element of the project consists of the generation of heat or electricity employing biomass, geothermal, methane, solar, or wind energy resources to be primarily consumed at the project, in which case the principal obligation of the Authority's mortgage does not exceed $2,000,000.00, which may be secured by land and by buildings, or machinery and equipment, or both; such principal obligation does not exceed 40 percent of the cost of the project; and the mortgagor is able to obtain financing for the balance of the cost of the project from other sources as provided in the following section; or
   2. a single loan for which the principal amount of the Authority's mortgage does not exceed $3,000,000.00 for an eligible facility consisting of a municipal telecommunications plant, as defined in 24 V.S.A. § 1911(2) .
6. The mortgagor is responsible and able to manage its responsibilities as mortgagor and owner of the project.
7. The mortgage has a satisfactory maturity date, in no case later than 20 years from the date of the mortgage.
8. The mortgagor is unable to finance the project upon reasonable terms without the assistance of the requested loan from the Authority, or in the alternative, the granting of the loan will serve as a substantial inducement for the establishment or expansion of an eligible project within the State.
9. The mortgagor has made adequate provision for insurance protection of the project while the loan is outstanding.
10. The loan will be without unreasonable risk of loss to the Authority.  Such findings when adopted by the Authority shall be conclusive.

    Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 187 (Adj. Sess.), § 5; 1987, No. 203 (Adj. Sess.), § 2, eff. May 27, 1988; 1991, No. 212 (Adj. Sess.), § 5, eff. May 27, 1992; 1993, No. 89 , § 3(b), eff. June 15, 1993; 1995, No. 46 , § 11, eff. April 20, 1995; 1999, No. 131 (Adj. Sess.), § 2; 2003, No. 67 , § 7a, eff. June 16, 2003; 2005, No. 137 (Adj. Sess.), § 2; 2011, No. 110 (Adj. Sess.), § 4, eff. May 8, 2012; 2015, No. 41 , § 24, eff. June 1, 2015.

§ 263. Mortgage loan; limitations.

1. When it has been determined by the Authority that the establishment or expansion of a particular eligible facility will accomplish the public purposes of this act, the Authority may contract to loan to the mortgagor an amount not in excess of 40 percent of the cost of such eligible facility. In addition, the Authority shall have determined that the mortgagor has obtained from other independent and responsible sources, such as banks and insurance companies or otherwise, a firm commitment for all other funds, over and above the loan of the Authority and such funds or property as the local development corporation may hold, necessary for payment of all of the cost of the project, and that the sum of all these funds, together with any funds, machinery, and equipment to be provided by the mortgagor is adequate for the completion and operation of the project.
2. Any loan of the Authority under this subchapter shall be for a period of time and shall bear interest at such rate as determined by the Authority and shall be secured by a mortgage on the eligible facility for which the loan was made or upon the assets of a municipal communications plant, including the net revenues derived from the operation thereof, or both. The mortgage may be subordinate to one or more prior mortgages, including the mortgage securing the obligation issued to secure the commitment of funds from the independent and responsible sources and used in the financing of the economic development project. Monies loaned by the Authority shall be withdrawn from the Vermont Jobs Fund and paid over to the mortgagor in such manner as provided and prescribed by the rules and regulations of the Authority. All payments of principal and interest on the loans shall be deposited by the Authority in the Vermont Jobs Fund.
3. Loans by the Authority for an eligible facility under this subchapter shall be made only in the manner and to the extent provided in this section, except, however, in those instances where an agency of the federal government participates in the financing of an eligible facility by loan, grant or otherwise. When any federal agency participates the Authority may adjust the required ratio of financial participation by the local development corporation, independent sources of funds, and the Authority in such manner as to ensure the maximum benefit available by the participation of the federal agency. Where any federal agency participating in the financing of an eligible facility is not permitted to take as security a mortgage, the lien of which is junior to the mortgage of the Authority, the Authority shall be authorized to take as security for its loan a mortgage junior in lien to that of the federal agency.
4. The Authority may develop and incorporate into loan instruments formulae which require prepayment of loans when the profits attained by the borrower warrant prepayment.
5. All real and personal property to which the Authority holds title by reason of foreclosure upon a mortgage or other security granted it pursuant to this subchapter, or a voluntary conveyance in lieu thereof, shall, as long as it is not leased or rented, be exempt from all taxes and special assessments of the State and all local municipal property taxes for the remaining balance of the tax year in which title becomes vested in the Authority and the entire next succeeding year; provided, however, that thereafter the Authority shall pay 50 percent of the local municipal property taxes annually assessed against such property during the term of the Authority's ownership.
6. The Authority shall give preference to projects located within labor market districts declared to be economically depressed areas as defined by the Vermont Agency of Commerce and Community Development or the Vermont Department of Labor, or to projects located within the area that is a designated job development zone under chapter 29, subchapter 2 of this title.
7. The Authority shall give preference to projects involving loans to employee-owned businesses, to businesses that are becoming employee-owned through the purchase of stock or business assets, and to start-up businesses that will be owned by substantially all of the employees.
8. All actions of a municipality taken under this subchapter for the financing of an eligible project described in subdivision 212(6) shall be as authorized in section 245 of this title.
9. The provisions of section 247 of this title shall apply to the financing of an eligible project described in subdivision 216(6) of this title.

   Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18 , § 19, eff. March 27, 1975; 1975, No. 18 7 (Adj. Sess.), § 6; 1977, No. 228 (Adj. Sess.), § 6, eff. April 17, 1978; 1981, No. 54 , § 16, eff. April 28, 1981; 1985, No. 172 (Adj. Sess.), § 4; 1985, No. 172 (Adj. Sess.), § 4; 1993, No. 89 , § 3, eff. June 15, 1993; 1995, No. 190 (Adj. Sess.), § 1(a); 2003, No. 121 (Adj. Sess.), § 90, eff. June 8, 2004; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 170 (Adj. Sess.), § 3; 2015, No. 41 , § 25, eff. June 1, 2015.

§ 264. Accelerated repayment provisions.

Any direct mortgage loan made on or after July 1, 1988 under this subchapter shall be conditioned upon the maintenance of a reasonable level of employment at the facility or facilities owned by the mortgagor and pledged as security for the loan. For the purposes of this section, a reasonable level of employment shall be deemed not to have been maintained whenever a mortgagor employing 50 or more employees at such facility or facilities permanently transfers, within any three-year period, 50 percent or more of those employees or employment positions to any out-of-state facility. Upon breach of this condition, the Authority may declare all principal and interest of the mortgage loan immediately due and payable and may commence foreclosure on any property held as security for the mortgage loan or take any other lawful steps to obtain payment.

Added 1987, No. 203 (Adj. Sess.), § 4, eff. May 27, 1988.

§§ 271-275. Repealed. 2019, No. 61, § 12.

§ 272. Definitions.

As used in this subchapter:

1. "Authority" means the Vermont Economic Development Authority.
2. "Family farmer" means a person who is a resident of this State and who is, or will become, engaged in farming on his or her own behalf managing and operating the farm on a full-time basis and whose net worth (including his or her dependents and spouse) does not exceed $150,000.00.
3. "Farming" shall mean the cultivation of land or other uses of land for the production of food, fiber, horticultural, orchard, or forest crops, or the raising of livestock, poultry, equines, fish, or bees.  Farming also includes the storage, preparation, retail sale, and transportation of agricultural commodities accessory to the cultivation or use of such land.
4. "Vermont Rehabilitation Corporation" means the nonprofit quasi-public corporation for which articles of association have been filed with the Secretary of State on April 26, 1935.

   Added 1985, No. 81 , § 1; amended 1993, No. 89 , § 3(a), eff. June 15, 1993.

§ 273. Farmers loan program; eligibility; application.

1. The Vermont Rehabilitation Corporation shall establish a family farm assistance loan program to: strengthen existing farms, encourage diversification and innovative farming techniques, increase energy efficiency and reduce energy consumption, and assist beginning farmers to start new farms, provided that beginning farmers will not produce commodities that are already in surplus.
2. In order to be eligible an applicant shall be:
   1. a family farmer who is a resident of this State;
   2. an owner or prospective purchaser of agricultural land in the State or depreciable farm machinery, equipment, or livestock to be used in the State;
   3. a person of sufficient education, training, or experience in the type of farming for which the applicant requests the loan;
   4. an operator or proposed operator of a farm for whom the loan reduces investment costs to an extent that offers him or her a reasonable chance to succeed;
   5. a credit-worthy person under such standards as the Vermont Rehabilitation Corporation may, in its discretion, establish; and
   6. in compliance with the requirements of subdivisions 262(2) through (4) and subdivisions (6) through (10) of this title. For purposes of this subchapter, the terms "eligible facility" and "facility" as used in section 262 shall be defined to include all farming operations.
3. Applicants for the family farmer assistance loan program under this subchapter shall apply to the Vermont Rehabilitation Corporation, which shall review proposed farm projects, and the applicant's qualifications and grant loans under the provisions of this subchapter, subject to such reasonable terms and conditions as the Vermont Rehabilitation Corporation deems appropriate.
4. Any person who obtains a loan under this subchapter shall not be eligible for loan assistance under subchapter 5 of this chapter during the period in which the subchapter 6 loan is outstanding.
5. All meetings of the Vermont Rehabilitation Corporation board of directors that concern the family farm assistance program shall be subject to 1 V.S.A. chapter 5, subchapter 5.

   Added 1985, No. 81 , § 1; amended 1993, No. 89 , § 3(b), eff. June 15, 1993.

§ 274. Loan terms and conditions.

1. Within the limits of funds available, the Vermont Rehabilitation Corporation may make loans to eligible applicants upon such terms and conditions as may reasonably be expected to be fulfilled by the applicant. In no event shall the total principal obligation of all Vermont Economic Development authority loans granted under this subchapter to any family farmer exceed $50,000.00.
2. The Vermont Rehabilitation Corporation shall require the farmer to execute a note, loan agreement, security agreement, mortgage, or other evidence of indebtedness in favor of the Authority sufficient to protect reasonably the security of the mortgage or secured loan. All payments shall be made to the Authority for the use of section 234 of this title. The Vermont Economic Development Authority shall service all loans made by the Vermont Rehabilitation Corporation under this subchapter. In the event of default by a loan recipient under this subchapter, the Authority shall consult with the Vermont Rehabilitation Corporation prior to commencing any collection or foreclosure action.

   Added 1985, No. 81 , § 1; amended 1993, No. 89 , § 3(a), eff. June 15, 1993.

§ 275. Funding.

In fiscal year 1986, the Vermont Rehabilitation Corporation, in its discretion, may loan up to $400,000.00 of the Vermont Jobs Fund established by section 234 of this title for the purposes of this subchapter. Depending on its assessment of the progress of the family farm assistance program, the General Assembly may adjust the loan limits from those established for fiscal year 1986 and may establish appropriate loan limits in fiscal years 1987 and 1988.

Added 1985, No. 81 , § 1.

§ 276. Repealed. 2009, No. 33, § 83(e)(2).

§ 277. Repealed. 2019, No. 61, § 12.

§§ 278-278b. Repealed. 2007, No. 46, § 8, eff. May 23, 2007.

§§ 279-279b. Repealed. 2015, No. 157 (Adj. Sess.), § A.7(b), eff. June 2, 2016.

§ 279c. Vermont Export Finance Program.

1. The Authority may, directly or indirectly, extend export finance to Vermont businesses, or to non-Vermont businesses where a substantial beneficiary of the export finance would be a Vermont business. The Authority may only directly extend export finance where the transaction will be guaranteed or insured against nonpayment by the Export-Import Bank of the United States, the U.S. Small Business Administration, or a comparable source of risk mitigation. Such export finance may include extending working capital loans to finance the pre-export costs of manufacturing, preparing, or accumulating products destined for export by overseas importers, the post-export costs of holding export receivables, as well as purchasing export receivables that are payable by overseas importers.
2. The Authority may use any cash on hand in the Vermont Jobs Fund established under subchapter 3 of this chapter, any appropriations made by the General Assembly for this purpose, loans from banks, export finance specialty lenders, the Treasurer, or other sources in order to provide funds for lending under this subchapter. The Authority may pledge its assets as security for such loans.
3. The Authority may sell any loans or participations in loans made under this subchapter to financial institutions.
4. The Authority may extend export finance on such terms and conditions as it deems appropriate. Export finance directly extended by the Authority shall conform to the terms and conditions of the applicable risk mitigation offered by the Export-Import Bank of the United States, the U.S. Small Business Administration, or a comparable source of risk mitigation.
5. Any excess of revenues over expenses derived from this program shall be deposited in the development fund.

   Added 1995, No. 46 , § 13, eff. April 20, 1995.

§ 280. Public financing policy.

1. It is policy of the State to engage in publicly supported financing activities that carry out the economic development policies of the State, including the following policies:
   1. Vermont should encourage enterprises that maximize job opportunities for Vermonters, produce a diversity of goods and services, and support sustainable development in the Vermont economy.
   2. Vermont should encourage entrepreneurial investments by the private sector in businesses that promote a sustainable economy and that are compatible with Vermont's economic, social, and environmental values.
   3. Vermont should help its citizens start, maintain, and expand enterprises that:
      1. make use of the traditional skills of Vermont's people while developing new capabilities necessary to compete in a changing economic environment; and
      2. produce value-added products or services, thereby maximizing reinvestment within Vermont.
2. As used in this chapter, the term "sustainable development" means meeting the needs of the present without compromising the ability of future generations to meet their own needs.

   Added 1995, No. 46 , § 14, eff. April 20, 1995.

§ 280a. Eligible projects; authorized financing programs.

1. The Authority may develop, modify, and implement any existing or new financing program, provided that any specific project that benefits from such program shall meet the criteria contained in the Vermont Sustainable Jobs Strategy adopted under section 280b of this title, and provided further that the program shall meet the criteria contained in the Vermont Sustainable Jobs Strategy adopted under section 280b of this title. These programs may include:
   1. the Mortgage Insurance Program, administered under chapter 12, subchapter 2 of this title;
   2. the Loans to Local Development Corporations Program, administered under chapter 12, subchapter 3 of this title;
   3. the Industrial Revenue Bond Program, administered under chapter 12, subchapter 4 of this title;
   4. the Direct Loan Program, administered under chapter 12, subchapter 5 of this title;
   5. the SBA 504 Certified Development Company and Small Business Loan Programs of the Authority's Vermont 504 Corporation, administered by the Authority under subdivision 216(13) of this title;
   6. the Small Business Development Corporation Program, administered by the Authority under subdivision 216(14) of this title;
   7. one or more programs targeting economically distressed regions of the State, and specifically including the Authority to develop a program to finance or refinance up to 100 percent of the existing assets or debts of a health, recreation, and fitness organization that is exempt under Section 501(c)(3) of the Internal Revenue Code, the income of which is entirely used for its exempt purpose, that owns and operates a recreation facility located in a distressed region of the State;
   8. an Export Finance Program, administered by the Authority under chapter 12, subchapter 9 of this title;
   9. a Vermont Sustainable Energy Loan Fund and any programs created thereunder, administered by the Authority under subchapter 13 of this chapter;
   10. any other program implemented after the adoption of the sustainable jobs strategy pursuant to section 280b of this title designed to meet Vermont's need for sustainable economic development;
   11. a program that would award grants made to eligible and qualified recipients as directed by the Agency of Agriculture, Food and Markets or the Agency of Natural Resources for the purpose of funding water quality initiatives approved by the agencies, provided that the maximum amount of grants awarded by the Authority pursuant to the program shall not exceed $1,340,238.00 in the aggregate.
2. This section shall not apply to the Job Start Program authorized by chapter 12, subchapter 7 of this title, and the agricultural finance programs authorized by chapter 16 of this title.

   Added 1995, No. 46 , § 14; amended 2003, No. 122 (Adj. Sess.), § 281, eff. June 10, 2004; 2011, No. 63 , § E.800; 2013, No. 87 , § 5, eff. June 17, 2013; 2015, No. 39 , § 20.

§ 280b. The Vermont sustainable jobs strategy.

1. The Governor, with the advice of the Secretary of Commerce and Community Development and the Authority, shall adopt a Vermont sustainable jobs strategy for the State, in accordance with the provisions of this section.
2. 1. The Vermont sustainable jobs strategy shall contain the criteria upon which the Authority shall develop, modify, and implement its public financing programs, and the criteria for determining whether investments should be made in an eligible project. Such criteria shall include a requirement that, before making any investment or other financial commitment, the Authority shall determine that the proposed project is of public use and benefit and is without unreasonable risk of loss to the Authority. (b) (1)  The Vermont sustainable jobs strategy shall contain the criteria upon which the Authority shall develop, modify, and implement its public financing programs, and the criteria for determining whether investments should be made in an eligible project. Such criteria shall include a requirement that, before making any investment or other financial commitment, the Authority shall determine that the proposed project is of public use and benefit and is without unreasonable risk of loss to the Authority.
   2. In adopting the Vermont sustainable jobs strategy, the Governor shall consider:
      1. the policies established in section 280 of this title; and
      2. the economic policy and economic development plan of the State, as developed by the Economic Progress Council under subchapter 3 of chapter 29 of this title.
3. 1. Before adopting the Vermont sustainable jobs strategy, the Governor shall direct the Authority and the Secretary of Commerce and Community Development to solicit information and recommendations from the people and businesses of the State. (c) (1)  Before adopting the Vermont sustainable jobs strategy, the Governor shall direct the Authority and the Secretary of Commerce and Community Development to solicit information and recommendations from the people and businesses of the State.
   2. After soliciting information and recommendations, the Authority and the Secretary shall jointly develop a proposed Vermont sustainable jobs strategy. In developing a proposed strategy, the Authority and the Secretary shall consider how best to integrate Vermont's economic, social, and environmental values into a Vermont sustainable jobs strategy. The Authority and the Secretary shall jointly present their proposed strategy to the House Committee on Commerce and the Senate Committee on Economic Development, Housing and General Affairs meeting in joint hearing.
   3. After legislative presentation, the Authority and the Secretary may amend the proposed strategy, and shall present the proposed strategy as amended to the Governor. The Governor may adopt the proposed strategy, or may return the proposed strategy to the Authority and the Secretary for further development and legislative presentation. After adoption of the Vermont sustainable jobs strategy, any amendments to the strategy may be adopted by the Governor in accordance with the process established by this section.

      Added 1995, No. 46 , § 14, eff. April 20, 1995; amended 1995, No. 190 (Adj. Sess.), § 1(b).

§ 280d. Definitions.

As used in this subchapter:

1. "Agency" means the Agency of Transportation.
2. "Authority" means the Vermont Economic Development Authority established under section 213 of this title.
3. "Board" means the State Infrastructure Bank Board as established under this subchapter.
4. "Bond act" means any general or special law authorizing a governmental unit to incur indebtedness for all or any part of the cost of a qualified project.
5. "Bonds" means bonds, notes, or other evidence of indebtedness.
6. "Borrower obligations" means government obligations or a promissory note of a private enterprise issued to evidence a loan.
7. "Cost," as applied to any qualified project, means any or all costs, whenever incurred, approved by the Agency, of carrying out a qualified project, including costs for preliminary planning or legal, fiscal, and economic investigations, reports, and studies to determine the economic or engineering feasibility of a qualified project; engineering and architectural reports, studies, surveys, designs, plans, working drawings, and specifications necessary in the construction of a qualified project; construction; expansion; facilities; improvement and rehabilitation; acquisition of real property, personal property, materials, machinery, or equipment; start-up costs; demolitions and relocations; reasonable reserves and working capital; interest on loans, borrower obligations and notes in anticipation thereof prior to and during construction of such qualified project or prior to the date of such loan, if later; administrative, legal, and financing expenses; and other expenses necessary or incidental to the above.
8. "Financial assistance" means any financial assistance for a qualified project provided by the Board under the Program, including loans to and leases with qualified borrowers, the establishment of reserves and other security, and guarantees of and credit enhancement for the obligations of governmental units and private enterprises incurred in connection with the financing of qualified projects.
9. "General revenues" when used with reference to a governmental unit means revenues, receipts, assessments, and other monies of a governmental unit, and all rights to receive the same, including revenue permitted to be collected by municipalities, project revenue, assessments upon or payments received from any other governmental unit that is a member or service recipient of the governmental unit, proceeds of loans made in accordance with this subchapter and of grants made in accordance with State transportation or highway grant programs, investment earnings, reserves for debt service or other capital or current expenses, receipts from any rate, charge, tax excise, or fee, all or a part of the receipts of which are payable or distributable to or for the account of the governmental unit, local aid distributions, if any, and receipts, distributions, reimbursements, and other assistance from the State or the United States; provided, however, that general revenues shall not include any monies restricted by law to specific statutorily defined purposes inconsistent with their treatment as general revenues for purposes of this subchapter.
10. "Government obligations or governmental obligations" means bonds, notes, or other evidence of indebtedness issued by a government unit to evidence a loan.
11. "Government unit or governmental unit" means any municipality, regional development corporation that is qualified pursuant to 24 V.S.A. chapter 76, or other instrumentality of the State or any of its political subdivisions, that is responsible for the construction, ownership, or operation of a qualified project.
12. "Guarantee" means a contract or contracts entered into by the Program pursuant to which the Program agrees to guarantee all or a portion of the obligations of a governmental unit or private enterprise incurred to finance a qualified project.
13. "Highway account" means the highway account of the Program, established under this subchapter.
14. "ISTEA" means the federal Intermodal Surface Transportation Efficiency Act of 1991, P.L. 102-240, as amended.
15. "Lease" means any form of capital or operating lease for all or a portion of a qualified project between the Program and a governmental unit or private enterprise.
16. "Loan" means any form of financial assistance subject to repayment which is provided by the Program to a qualified borrower for all or any part of the cost of a qualified project. A loan may provide for planning, construction, bridge, or permanent financing, and be disbursed in anticipation of reimbursement for or direct payment of costs of a qualified project or take the form of a guarantee, line of credit, or other form of financial assistance.
17. "Loan agreement" means any agreement entered into between the program and a qualified borrower pertaining to a loan or lease. A loan agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a qualified project or any other provisions as the Board may reasonably determine. The term "loan agreement" shall include a loan agreement, lease, trust agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note resolution, loan order, or similar instrument whether secured or unsecured.
18. "NHS Act" means the federal National Highway System Designation Act of 1995, P.L. 104-59, as amended.
19. "Private enterprise" means a private person or entity that has entered into a contract with a public authority to design, finance, construct, or operate a qualified project that is within the jurisdiction of such public authority, provided that the public authority is responsible for complying with all applicable requirements of ISTEA and the NHS Act with respect to such qualified project.
20. "Program" means the State Infrastructure Bank Program established pursuant to this subchapter.
21. "Project revenues" means all rates, rents, fees, assessments, charges and other receipts derived or to be derived by a qualified borrower from a qualified project, and, if so provided in the applicable loan agreement pursuant to this subchapter, from any system of which such qualified project is a part and any other revenue producing facilities under the ownership or control of such qualified borrower, including proceeds of grants, gifts, appropriations and loans, including the proceeds of loans or grants made by the Board, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and the sale or other disposition of property; provided, however, the project revenues shall not include any ad valorem taxes levied directly by a governmental unit on any real and personal property.
22. "Qualified borrower" means any governmental unit or private enterprise that is authorized to construct, operate, or own a qualified project.
23. "Qualified project" means any activity, as defined in Title 23 and Title 49, Code of Federal Regulations.
24. "Revenues" when used with respect to the Board, means any receipts, fees, revenues, or other payments received or to be received by the Program, including receipts and other payments received by or deposited in the Program, payments of principal, interest, or other charges on loans, leases, grants, appropriations or other financial assistance from the State or the United States or any political subdivision or instrumentality of either in connection with the Program, investment earnings on its funds and accounts, including the Program, and any other fees, charges, or other income received or receivable by the Program.
25. "Secretary" means the Secretary of Transportation.
26. "State aid distributions" means any receipts, distributions, reimbursements, or other assistance payable by the State to or for the account of a governmental unit.
27. "Transit account" means the transit account of the Program, established pursuant to this subchapter.
28. "Trust agreement" means any agreement entered into by the Program and the State Treasurer providing for the issuance, security, and payment of bonds issued pursuant to this subchapter. The term "trust agreement" shall include a trust agreement, trust indenture, security agreement, reimbursement agreement, bond or note resolution, or other similar instrument.

    Added 1997, No. 43 , § 1.

§ 280e. State Infrastructure Bank Program.

1. There is created a State Infrastructure Bank Program, to be a program to assist the improvement, rehabilitation, expansion, and construction of transportation projects within the State to contribute to the economic welfare of the State by providing jobs and other economic opportunities for the people of the State and enhancing economic development, particularly in downtown areas.
2. 1. A State infrastructure bank board is established within the Vermont Economic Development Authority to administer the State Infrastructure Bank Program. (b) (1)  A State infrastructure bank board is established within the Vermont Economic Development Authority to administer the State Infrastructure Bank Program.
   2. The Board shall consist of two legislators and nine other members: the State Treasurer, the Secretary of Transportation or designee, the Secretary of Commerce and Community Development or designee, one member of the Authority, one member from the Agency of Transportation Planning Division, one member who is a member of the board of a regional development corporation approved under 24 V.S.A. chapter 76, one member who is a member of a regional planning commission created under 24 V.S.A. chapter 117, subchapter 3, two members at large, one Representative appointed by the Speaker of the House, and one Senator appointed by the Committee on Committees. Selection of Board members shall be made with consideration toward geographic representation from throughout the State. Board members, other than legislators and State agency officials or designees, shall be appointed by the Governor, with the advice and consent of the Senate, to five-year terms, except that the Governor shall stagger initial appointments so that the terms of no more than two members expire during a calendar year. Legislative members shall be appointed on or before January 15 of the first year of each legislative session. A quorum shall consist of six members. Members disqualified from voting shall be considered present for purposes of determining a quorum. No action of the Board shall be considered valid unless the action is supported by a majority vote of the members present and voting and then only if at least four members vote in favor of the action.
   3. Board members who are not otherwise compensated in the course of their employment shall be compensated and receive reimbursement for necessary expenses in the same manner provided for members of the board of the Economic Development Authority under subsection 213(e) of this title.
3. 1. The Board shall adopt such rules or guidelines as it deems necessary to carry out the purposes of the program. (c) (1)  The Board shall adopt such rules or guidelines as it deems necessary to carry out the purposes of the program.
   2. A majority vote of Board members present and voting shall be necessary to approve a loan or bond issuance.
   3. The Secretary of Transportation can veto any approval of the Board if he or she presents objections to the Board based upon the lack of compliance with federal law governing this Program.
   4. The Authority shall assign a State Infrastructure Bank Coordinator from the staff of the Authority to manage the Program. The Coordinator shall be responsible for administration of the Program in accordance with the policies and rules of the Board. The Coordinator may have other responsibilities within the Authority that are outside this Program. The Coordinator may examine any records relating to applications and may conduct such program and fiscal audits as the Coordinator deems necessary.

      Added 1997, No. 43 , § 1; amended 1997, No. 120 (Adj. Sess.), § 1a.

§ 280f. Applicability of general provisions.

The definitions under section 212 of this chapter shall not apply to this subchapter.

Added 1997, No. 43 , § 1.

§ 280g. State Infrastructure Bank Program; duties; powers.

1. The Board, in addition to any other powers and duties conferred or imposed on it by this chapter or any other law, shall have the following powers and duties:
   1. to apply for, receive, administer, and comply with the conditions and requirements respecting any grant, gift, or appropriation of property, services, or monies;
   2. to make loans to or enter into leases with qualified borrowers to finance the costs of qualified projects, to acquire, hold, and sell borrower obligations evidencing the loans at such prices and in such manner as the Board shall deem advisable, and to pledge borrower obligations to secure bonds issued pursuant to this subchapter;
   3. to enter into guarantees secured solely by, or purchase insurance or other credit enhancement through, amounts on deposit in the Program;
   4. to enter into contracts, arrangements, and agreements to provide any other form of financial assistance through amounts on deposit in the Program that the Board may consider appropriate;
   5. to enter into contracts, arrangements, and agreements with other persons and execute and deliver all trust agreements, loan agreements, and other instruments necessary or convenient to the exercise of the powers granted in this subchapter;
   6. to enter into an agreement, contract, or other arrangement directly or indirectly with the Agency or Authority or with a private enterprise in furtherance of and in accordance with the provisions of ISTEA or the NHS Act, as applicable;
   7. to obtain insurance necessary or convenient to the exercise of the power granted in this subchapter;
   8. to engage accounting, management, legal, financial, consulting, and other professional services necessary to the conduct of the Program;
   9. to distribute the benefits conferred by this subchapter throughout the State.
   10. [Repealed.]
2. In its administration of the Program as provided in this subchapter, the Program shall comply with applicable federal requirements under ISTEA and the NHS Act and other applicable federal programs. The Program shall not be authorized or empowered to be or to constitute a bank, trust company, or licensed lender under the jurisdiction or under the control of the Department of Financial Regulation or the Comptroller of the Currency or the Treasury Department of the United States, or to 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 or Vermont.
3. The Agency shall provide technical assistance to either the Board, Program, or the Vermont Economic Development Authority to ensure compliance pursuant to subsection (b) of this section.
4. [Repealed.]

   Added 1997, No. 43 , § 1; amended 1997, No. 144 (Adj. Sess.), § 20; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 153 (Adj. Sess.), § 28.

§ 280h. Receipt and administration of Program funds.

1. The Authority shall receive in trust, hold, administer, and disburse in and from the Program exclusively for the benefit of the beneficiaries the following monies:
   1. federal grants and awards or other federal assistance received by the Agency or the State and eligible for deposit therein under applicable federal law;
   2. amounts appropriated by the State to the Program for purposes of the Program;
   3. loan and lease payments and other payments received by the Program in respect of providing financial assistance to qualified borrowers;
   4. investment earnings on monies in the Program; and
   5. any other amounts required to be credited to the Program by any law or by any resolution, loan agreement, or trust agreement or which the State or the Secretary shall otherwise determine to deposit therein.
2. Application of amounts in the Program shall be subject to the requirements of this subchapter and the provisions of any applicable loan agreement or trust agreement and, with respect to amounts held pursuant to grants or awards made under 23 U.S.C. § 101 et seq., or 49 U.S.C. § 5301 et seq., or any other federal law, to the applicable requirements of federal law. The Authority shall be the custodian of the Fund as provided in this subchapter, and, subject to any applicable trust agreement, the Authority is authorized to invest monies held in the Program in such investments as may be legal investments for funds of the State, subject, however, with respect to funds deposited in the Program pursuant to section 350 of the NHS Act, to the provisions of section 350(e)(3) of the NHS Act.

   Added 1997, No. 43 , § 1.

§ 280i. Disbursement and use of funds.

1. Subject to limitations under ISTEA and the NHS Act and other federal laws, other laws respecting the use of particular monies in the Program, and the provisions of any applicable trust agreement, amounts in the Program may be used only:
   1. to provide financial assistance, including through loans and leases, to finance or refinance the costs of qualified projects and to provide for all or any part of the interest costs on loans made by the Program during the construction of such qualified projects;
   2. to guarantee or purchase insurance or other credit enhancement for bonds of qualified borrowers issued to finance the costs of qualified projects;
   3. to provide reserves for or otherwise secure bonds issued pursuant to this subchapter and to provide insurance or other credit enhancement for such bonds;
   4. to provide a subsidy for, or to otherwise assist, qualified borrowers in the payment of debt service costs on loans made by the Program;
   5. to provide reserves for, or to otherwise secure, amounts payable by qualified borrowers on loans made by and leases with the Program in the event of default by a particular qualified borrower or, on a parity basis, by any qualified borrower;
   6. to earn interest on the Fund; and
   7. for the costs of administering the Program; provided, however, that not more than two percent of the federal funds contributed to the Program pursuant to section 350 of the NHS Act may be expended for such administrative costs.
2. For necessary and convenient administration of the Fund, the Program shall establish the highway account and the transit account, as provided in section 280n of this title, and one or more additional accounts and sub-accounts within the Vermont Economic Development Authority as shall be necessary to meet the requirements of the NHS Act and any other applicable federal law requirements or as the program shall otherwise deem necessary or desirable in order to implement the provisions of this subchapter or to comply with any trust agreement. The Program may also establish in any trust agreement or otherwise, as the Secretary shall determine, one or more other funds and accounts for revenues and other funds not required to be held in the Program, and to apply and disburse such funds for the purposes of the Program.

   Added 1997, No. 43 , § 1.

§ 280j. Powers and duties of the Secretary.

The Secretary is authorized and directed to take all necessary or incidental actions to secure for the State the benefits of ISTEA and the NHS Act, and any similar programs, including exercise of the powers:

1. to cooperate with appropriate federal agencies in all matters related to the administration of the Program as contemplated by 23 U.S.C. § 129(a) (7) and section 350 of the NHS Act;
2. to prepare and submit to the appropriate federal agencies applications for grants and to enter into grant agreements, cooperative agreements, operating agreements, and other agreements with the United States relating to the purposes of the Program; and
3. to prepare and submit to the appropriate federal agencies and the Vermont General Assembly, annual and other reports and audits, in form and content satisfying federal requirements, relating to the Program.

   Added 1997, No. 43 , § 1.

§ 280k. Powers and duties of the Program.

The Program is authorized and directed to take all necessary or incidental actions to secure for the State the benefits of ISTEA and the NHS Act, and any similar programs, including exercise of the powers:

1. to establish and collect such fees, charges, and interest rates in compliance with federal requirements and as the Board determines to be reasonable, and to hold, apply and disburse such funds within or without the Program to implement the purposes of this subchapter;
2. to establish, jointly with the Authority, fiscal controls and accounting procedures for the Program.

   Added 1997, No. 43 , § 1.

§ 280l. Applications for financial assistance.

1. Any qualified borrower may file an application with the Board to obtain financial assistance from the Program. The application shall be filed in such manner and contain or be accompanied by such information as the Program may require.
2. In addition to other requirements prescribed by the Board, an application shall:
   1. describe the nature and purpose of the proposed transportation project, including the need for the project and the reasons why the project is in the public interest;
   2. state the estimated costs of the project and the proposed sources of funding, if any, in addition to the financial assistance being sought from the Program;
   3. state the economic development benefit;
   4. demonstrate that the project has the support of the regional planning commission or the metropolitan planning organization, as the case may be, in which the project is located, which support shall not be given unless the project is in conformance with the regional plan;
   5. demonstrate conformance with Agency of Transportation design standards and level of improvement policies; and
   6. demonstrate that the public benefits of the project outweigh its public costs.
3. Before any financial assistance under this chapter is approved for an Agency of Transportation project, the applicant shall demonstrate that:
   1. the project is part of the State's current year transportation capital program approved by the General Assembly under 19 V.S.A. § 10g(c) ; or
   2. if the Legislature is not in session, the project is approved by a committee, composed of the Joint Fiscal Committee, the Chair of the House Committee on Transportation or designee, and the Chair of the Senate Committee on Transportation or designee.

      Added 1997, No. 43 , § 1.

§ 280m. Loan and lease terms.

1. The Board shall determine the form and content of any borrower obligation, including the term and rate or rates of interest on any loan or lease.
2. Notwithstanding subsection (a) of this section, loans and leases financed through the application of federal monies pursuant to 23 U.S.C. § 129 or section 350 of the NHS Act shall:
   1. bear interest at or below market rates or otherwise as may be specified therein;
   2. have a repayment term of not longer than 30 years;
   3. be subject to repayment commencing not later than five years after the facility financed with the proceeds of such loan has been completed or, in the case of a highway project, the facility has opened to traffic; and
   4. be made only after all federal environmental requirements applicable to the qualified project have been complied with and all federal environmental permits obtained.
3. Notwithstanding any provisions of this subchapter to the contrary, the Secretary may waive any of the requirements contained in this section if such waiver would not cause the loan or the Program to violate the requirements of ISTEA or the NHS Act or any other applicable federal requirement.

   Added 1997, No. 43 , § 1.

§ 280n. Program Fund; accounts.

1. A State Infrastructure Bank Program Fund is created as a special fund subject to the provisions of 32 V.S.A. chapter 7, subchapter 5. The Fund shall be administered by the Authority for the purposes of the Program, in accordance with the provisions of this subchapter.
2. The State Infrastructure Bank Program Fund shall receive funds from the following sources:
   1. any amounts required under section 350 of the NHS Act or any other federal law or program to be deposited in the highway account and such funds shall not be commingled with any other amounts on deposit in the Program;
   2. any amounts required under section 350 of the NHS Act or any other federal law or program to be deposited in the transit account and such funds shall not be commingled with any other amounts on deposit in the Program;
   3. any other State or federal funds appropriated for the Program by the General Assembly, any repayments of principal and interest of Program loans, any private monies related to the administration and operation of the Program;
   4. any grants received for the benefit of the Program.
3. Notwithstanding 32 V.S.A. § 588(4)(A) , monies may be disbursed from the Fund for Program purposes without an annual appropriation.
4. The liabilities or obligations of the Authority with regard to its activities under the Program shall not extend beyond the funds that are deposited in the State Infrastructure Bank Program Fund, and shall not constitute a debt or pledge of the faith and credit of the State or any subdivision of the State.
5. Any monies held in the Program shall be used solely as provided in this subchapter, subject to the applicable federal requirements.
6. Expenditures from the Program shall be made for the following purposes:
   1. for the payment of the principal, including sinking fund payments of and premium, if any, and interest on bonds of the Authority in connection with the Program, as described in section 280o of this title, issued for the purpose of financing or refinancing any cost of a qualified project;
   2. for providing financial assistance to qualified borrowers to finance qualified projects;
   3. for the maintenance of, or provision for, any reserves, additional security, insurance, or other form of credit enhancement required or provided for in any trust agreement entered into pursuant to section 280q of this title to secure such bonds; and
   4. administration costs of the Program or for any of the foregoing.

      Added 1997, No. 43 , § 1.

§ 280o. Issuance of revenue bonds.

1. The Authority may issue bonds to finance or refinance any cost of a qualified project or provide other financial assistance, the proceeds of which are to be deposited in the Program, or used to refinance existing obligations (whether obligations of the Authority or another entity), used to fund the cost of a qualified project.
2. Such bonds shall be special revenue bonds of the State payable solely from revenues, credited to the Program.
3. Notwithstanding the provisions of any law to the contrary, such bonds shall not be general obligations of the State.
4. Bonds may be issued provided that such issuance meets the requirements of section 244 and subsections 254(b), (c), (d), (f), and (g) of this title.
5. Sections 250, 252, and subsections 253(b), (c), and (d) of this title shall also apply to bonds issued under this subchapter, except that any reference to industrial facilities therein shall also apply to eligible projects under this subchapter.
6. Bonds may be secured by a trust agreement entered into by the Authority, which trust agreement may pledge or assign, in whole or in part, any loan agreements or governmental obligations, and all or any part of the monies credited to the Program, subject to applicable federal requirements, and any funds or accounts established under a trust agreement, any contract or other rights to receive the same, whether then existing or coming into existence and whether then held or thereafter acquired, and the proceeds thereof.

   Added 1997, No. 43 , § 1.

§ 280p. Additional security agreements, insurance, and credit enhancements.

The Authority is also authorized to enter into additional security, insurance, or other forms of credit enhancement that may be secured on a parity or subordinate basis with the bonds. A pledge in any such trust agreement or credit enhancement agreement shall be valid and binding from the time such pledge shall be made without any physical delivery or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise, irrespective of whether such parties have notice thereof. Any such pledge shall be perfected by filing of the trust agreement or credit enhancement agreement in the records of the Authority, and no filing need be made under any other provision of law. Any such trust agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as determined by the Authority, including provisions relating to the establishment of reserves, the issuance of additional or refunding bonds, whether or not secured on a parity basis, the application of receipts, monies, or funds pledged pursuant to such agreement, hereinafter referred to as "pledged funds," and other matters deemed necessary or desirable by the Authority for the security of such bonds, and may also regulate the custody, investment, and application of monies.

Added 1997, No. 43 , § 1.

§ 280q. Loans to qualified borrowers to finance qualified projects.

1. Any qualified borrower may apply to the Program for a loan to assist in financing the cost of a qualified project. At the option of the Board, and subject to applicable federal requirements, a loan may be made as secured loans or as unsecured general obligations of a qualified borrower. Each loan shall be made pursuant to a loan agreement between the Program and the qualified borrower acting by and through the officer or officers, board, committee, or other body authorized by law, or otherwise its chief executive officer.
2. A qualified borrower may receive, apply, pledge, assign, and grant security interests in project revenues, and, in the case of a governmental unit, its general revenues to secure its obligations under loan agreements and borrower obligations as provided in this subchapter and may fix, revise, charge, and collect fees, rates, rents, assessments, and other charges of general or special application for the operation or services of any qualified project, the system of which it is a part and any other revenue producing facilities from which the qualified borrower derives project revenues to meet its obligations under any loan agreements or borrower obligation, or otherwise to provide for the construction, maintenance, and operation of a qualified project.
3. For the purposes of entering into a loan and establishing the authorized terms and conditions thereof and for issuing any government obligations, a governmental unit shall be deemed to have the powers expressly granted to governmental units in this subchapter and the powers granted to the governmental unit in any bond act applicable to it specifically or as a member of a class of governmental instrumentalities. Liberal construction shall be given in support of the broadest interpretation of governmental unit powers derived from either this subchapter or any bonds act, provided that nothing in this subchapter shall be construed as affecting the manner of voting and other procedures of any governmental unit by the governing body thereof or any limitations on indebtedness of governmental units.

   Added 1997, No. 43 , § 1.

§ 280r. Powers and privileges of government units.

In order to provide for the collection and enforcement of fees, rates, rents, assessments, and other charges for the operation of any qualified project, the system of which it is a part and any other revenue producing facilities from which the governmental unit derives project revenues, in addition to any other authority provided by law or any applicable bond act, governmental units are hereby granted all the powers and privileges granted to them by law with respect to any similar fee, rate, rent, assessment, or other charge. Any governmental unit may enter into agreements with the Agency:

1. regarding the operation of a pricing system for the services producing facilities from which the governmental unit derives project revenues. Such agreements may include provisions defining the costs of such services, the qualified project and such local system and other facilities, and covenants or agreements regarding the fixing and collection of fees, rates, rents, assessments, and other charges for such costs and the maintenance of such pricing system at levels sufficient to pay or provide for all such costs and any payments due the department under any loan agreement or governmental obligations;
2. regarding the operation of an enterprise fund established for any qualified project, and the system of which it is a part and any other revenue producing facilities from which the governmental unit derives project revenues. Such agreements may include fiscal and accounting controls and procedures, provisions regarding the custody, safeguarding, and investment of project revenues and other amounts credited thereto, the establishment of reserves and other accounts and funds and the application of any surplus funds.

   Added 1997, No. 43 , § 1.

§ 280s. Borrower obligations.

1. Subject to the provisions of this subchapter, governmental obligations issued by a governmental unit shall conform to the requirements of subchapter 4 of this chapter.
2. Notwithstanding any law to the contrary, if a governmental unit has authorized a loan in accordance with this subchapter and the issuance of governmental obligations under any bond act, the governmental unit may, subject to the loan agreement and the approval of the Board, issue notes to the Authority or any other person in anticipation of the receipt of the proceeds of the loan. The issue of such notes shall be governed by the provisions of this subchapter relating to the issue of governmental obligations other than notes, to the extent applicable, provided the maturity date of such notes shall not exceed three years from the date of issue of such notes or the expected date of completion of the project financed thereby, as determined by the Board, if later. Notes issued for less than the maximum maturity date may be renewed by the issue of other notes maturing no later than the maximum maturity date.
3. A governmental unit may issue governmental obligations to refund or pay at maturity or earlier redemption any governmental obligations outstanding under any loan agreement or to refund or pay any other debt of the governmental unit issued to finance the qualified project to which such loan agreement pertains. Governmental obligations for refunding may be issued in sufficient amounts to pay or provide for the principal of the obligations refunded, any redemption premium thereon, any interest accrued and to accrue to the date of payment of such obligations, the costs of issuance of such refunding obligations and any reserves required by the applicable loan agreement. An issue of refunding governmental obligations, the amount and dates of maturity or maturities and other details thereof, the security thereof and the rights, duties, and obligations of the governmental unit with respect thereto shall be governed by the provisions of this subchapter relating to the issue of governmental obligations other than refunding obligations as the same may be applicable.
4. Except as otherwise provided in this subchapter, the applicable bond act, or by agreement between the Board and a governmental unit, all governmental obligations shall be general obligations of the governmental unit issuing the same for which its full faith and credit are pledged and for the payment of which all taxable property in the governmental unit shall be subject to ad valorem taxation without limitation as to rate or amount except as otherwise provided by law.

   Added 1997, No. 43 , § 1.

§ 280t. Security agreements securing borrower obligations; pledges of general revenues or project revenues.

1. Governmental obligations may be secured by one or more security agreements between the governmental unit and a corporate trustee, which may be a trust company or bank having the powers of a trust company within or without the State, or directly between the Board and the governmental unit. A borrower obligation, other than governmental obligations, may be secured by one or more security agreements between the Board and the qualified borrower. Any security agreements entered into pursuant to this section shall be in such form and shall be executed as provided in the applicable loan agreement or as otherwise agreed to between the Board and the qualified borrower.
2. Any security agreement directly or indirectly securing governmental obligations, other than governmental obligations issued in accordance with this subchapter, may pledge or assign, and create security interests in, all or any part of the general revenues of the governmental unit. Any security agreement securing borrower obligations issued in accordance with this section may pledge or assign, and create security interests in, all or any part of the project revenues of the qualified borrower, but, in the case of a governmental unit, shall not otherwise pledge or assign any other general revenues of the governmental unit unless otherwise authorized by the applicable bond act. Any security agreement may contain such provisions for protecting and enforcing the rights, security, and remedies of the Board, or the holders of the borrower obligations, as may be determined by the Board and the qualified borrower, including provisions defining defaults and providing for remedies, including the acceleration of maturities, and:
   1. in the case of borrower obligations issued under this section, the appointment of a receiver of the project financed thereby and the system of which it is a part; and
   2. in the case of public entities, the use of a State aid intercept mechanism; and covenants setting forth the duties of, and limitations on, the qualified borrower in relation to the custody, safeguarding, investment, and application of monies, including general revenues and project revenues, the issue of additional and refunding borrower obligations and other bonds, notes, or obligations on a parity or superior thereto, the establishment of reserves, the establishment of sinking funds for the payment of borrower obligations, and the use of surplus proceeds. A security agreement securing borrower obligations issued in accordance with this section also may include covenants and provisions not in violation of law regarding the acquisition, construction, operation, and carrying out of the qualified project financed by such obligations, the system of which it is a part and any other revenue producing facilities from which the qualified borrower may pledge or assign any of its project revenues as appropriate, as security for payments made thereon.
3. Any pledge of general revenues or project revenues made by a qualified borrower shall be valid and binding and shall be deemed continuously perfected for the purposes of the State commercial code, Title 9 and Title 9A, and any other law from the time made. The general revenues, project revenues, monies, rights, and proceeds so pledged and then held or thereafter acquired or received by the qualified borrower shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, regardless of whether such parties have notice thereof. Neither the security agreement or any other agreement by which a pledge is created need be filed or recorded except in the records of the governmental unit and no filing need be made under the provisions of the State commercial code.
4. In the case of a governmental unit, a pledge of general revenues or project revenues in accordance with this subchapter shall constitute a sufficient appropriation thereof for the purposes of any provisions for appropriation for so long as such pledge shall be in effect and, notwithstanding any law to the contrary, such revenues shall be applied as required by the pledge and the security agreement evidencing the same without further appropriation.

   Added 1997, No. 43 , § 1.

§ 280u. Guarantees; other credit enhancement.

1. The Board may provide guarantees secured solely by, or purchase of insurance or other enhancements through, amounts on deposit in the program, to qualified borrowers in accordance with the provisions of this section.
2. All of the assets and obligations directly covered by guarantees or other forms of credit enhancement shall be assets or obligations of governmental units or private entities that are, without guarantee or enhancement, listed by a nationally recognized statistical rating organization at a rating not below the third highest rating of such organization.
3. The assets and obligations that may be directly covered by guarantees issued by the Board are:
   1. bonds, debentures, notes, evidence of debt, loans, and interest therein, of qualified borrowers, the proceeds of which are to be used for a qualified project; and
   2. leases of personal, real, or mixed property to be used for a qualified project.
4. The Program may charge and collect premiums or other fees for the guarantees or other credit enhancement provided pursuant to this subchapter, including fees for services performed in connection with the approval and processing of the guarantees or the credit enhancement provided pursuant to this subchapter.

   Added 1997, No. 43 , § 1.

§ 280v. Termination of the Program; remaining assets and liabilities.

The Program shall continue until terminated by law; provided, however, that no such law shall take effect so long as there shall be outstanding bonds secured by the fund unless adequate provision has been made for the payment or satisfaction thereof. Upon termination of the Program, assets that remain after provision for the payment or satisfaction of all bonds issued pursuant to this subchapter shall vest in the State, in the Transportation Fund and General Fund in equal proportion to the percentages of funds initially invested in the bank. For the purpose of this section only, federal transportation funds invested in the bank shall be considered State transportation funds.

Added 1997, No. 43 , § 1.

§ 280w. Records of receipts, expenditures, and disbursements.

The Authority, in cooperation with the Agency, shall at all times keep full and accurate accounts of all receipts, expenditures, and disbursements from the Program and all assets and liabilities of the Program incurred pursuant to this subchapter that shall be open to inspection by any officer or duly appointed agent of the State.

Added 1997, No. 43 , § 1.

§ 280x. Obligations; credit of the State not pledged.

Obligations issued under the provisions of this subchapter shall not be deemed to constitute a debt or liability of the State. Each obligation issued under this subchapter shall contain on the face thereof a statement to the effect that the Authority shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor, 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 such obligations.

Added 1997, No. 43 , § 1.

§ 280y. Public records.

The Authority shall establish policies and procedures to ensure that information relating to the cost of any qualified project is considered a public record, and subject to the provisions of 1 V.S.A. chapter 5, subchapter 2.

Added 1997, No. 43 , § 1.

§ 280aa. Findings and purpose.

1. 1. Vermont-based businesses in seed, start-up, and growth stages are a vital source of innovation, employment, and economic growth in Vermont. The continued development and success of these businesses is dependent upon the availability of flexible, risk-based capital. (a) (1)  Vermont-based businesses in seed, start-up, and growth stages are a vital source of innovation, employment, and economic growth in Vermont. The continued development and success of these businesses is dependent upon the availability of flexible, risk-based capital.
   2. Because the primary assets of Vermont-based businesses in seed, start-up, and growth stages often consist almost entirely of intellectual property or insufficient tangible assets to support conventional lending, these companies frequently may not have access to conventional means of raising capital, such as asset-based bank financing.
2. To support the growth of Vermont-based businesses in seed, start-up, and growth stages and the resultant creation of higher-wage employment in Vermont, the General Assembly hereby creates in this subchapter the Vermont Entrepreneurial Lending Program.

   Added 2009, No. 54 , § 28, eff. June 1, 2009; amended 2013, No. 179 (Adj. Sess.), § F.100; 2013, No. 199 (Adj. Sess.), § 4.

§ 280bb. Vermont Entrepreneurial Lending Program.

1. There is created the Vermont Entrepreneurial Lending Program to be administered by the Vermont Economic Development Authority. The Program shall seek to meet the working capital and capital-asset financing needs of Vermont-based businesses in seed, start-up, and growth stages. The Program shall specifically seek to fulfill capital requirement needs that are unmet in Vermont, including:
   1. loans to manufacturing businesses and software developers with innovative products that typically reflect long-term, organic growth;
   2. loans up to $1,000,000.00 in growth-stage companies that do not meet the underwriting criteria of other public and private entrepreneurial financing sources;
   3. loans to businesses that are unable to access adequate capital resources because the primary assets of these businesses are typically intellectual property or similar nontangible assets; and
   4. loans to advanced manufacturers and other Vermont businesses for product development and intellectual property design.
2. The Authority shall adopt regulations, policies, and procedures for the Program as are necessary to increase the amount of investment funds available to Vermont businesses whose capital requirements are not being met by conventional lending sources.
3. When considering entrepreneurial lending through the Program, the Authority shall give additional consideration and weight to an application of a business whose business model and practices will have a demonstrable effect in achieving other public policy goals of the State, including:
   1. The business will create jobs in strategic sectors such as the knowledge-based economy, renewable energy, advanced manufacturing, wood products manufacturing, and value-added agricultural processing.
   2. The business is located in a designated downtown, village center, growth center, industrial park, or other significant geographic location recognized by the State.
   3. The business adopts energy and thermal efficiency practices in its operations or otherwise operates in a way that reflects a commitment to green energy principles.
   4. The business will create jobs that pay a livable wage and significant benefits to Vermont employees.
   5. The business will create environmental benefits or will manufacture environmentally responsible products.
4. The Authority shall include provisions in the terms of a loan made under the Program to ensure that a loan recipient shall maintain operations within the State for a minimum of five years from the date on which the recipient receives the loan funds from the Authority or shall otherwise be required to repay the outstanding funds in full.

   Added 2009, No. 54 , § 28, eff. June 1, 2009; amended 2013, No. 179 (Adj. Sess.), § F.100; 2013, No. 199 (Adj. Sess.), § 4; 2015, No. 51 , § E.1, eff. June 3, 2015.

§ 280cc. Creation; purpose; definitions.

1. There is established within the Authority the Vermont Sustainable Energy Loan Fund, referred to in this subchapter as "the Fund," the purpose of which shall be to enable the Authority to make loans and provide other forms of financing for projects that stimulate and encourage development and deployment of sustainable energy projects in the State of Vermont.
2. In this subchapter:
   1. "Renewable energy" shall have the same meaning as in 30 V.S.A. § 8002(17) .
   2. "Sustainable energy" means energy efficiency, renewable energy, and technologies that enhance or support the development and implementation of renewable energy or energy efficiency, or both.

      Added 2013, No. 87 , § 1, eff. June 17, 2013.

§ 280dd. Loan programs administered within the Fund.

1. The Fund shall consist of:
   1. Existing sustainable energy loans made by the Authority, the Vermont Small Business Development Corporation, and the Vermont Agricultural Credit Corporation.
   2. Sustainable energy loans originated under the following programs:
      1. The Small Business Energy Efficiency Loan Program, under which the Authority provides loans for qualifying commercial energy efficiency improvements.
      2. The Renewable Energy Loan Program, which the Authority may create to provide loans for qualifying renewable energy projects.
      3. The Agricultural Energy Loan Program, which the Authority may create to provide loans for qualifying agriculture- and forest product-based sustainable energy projects.
      4. The Energy Efficiency Loan Guarantee Program, which the Authority may create to provide loan guarantees to participating lending institutions that enroll loans for sustainable energy projects in the Program.
   3. Programs created by the Authority pursuant to subsection (c) of this section.
2. The Fund shall be administered by the Authority and shall not be subject to 32 V.S.A. chapter 7, subchapter 5.
3. The Authority may establish:
   1. New financing programs that the Authority determines are necessary to encourage and promote sustainable energy projects and reduce reliance upon fossil fuel sources.
   2. Policies and procedures for programs within the Fund that the Authority determines are necessary to carry out the purposes of this subchapter.
4. For all sustainable energy loans, the Authority shall maintain records on the projected reductions in greenhouse gas emissions and, for energy efficiency loans, the projected energy savings from the financed improvements and shall provide data on the projected greenhouse gas emissions reductions and projected energy savings to the Department of Public Service, the Public Utility Commission, and the Agency of Natural Resources on request. The methods used for calculating and reporting this data shall be the same methods used in programs delivered under 30 V.S.A. § 209(d) and (e). The data provided shall be used for the purpose of tracking progress toward the greenhouse gas reduction goals of section 578 of this title and the building efficiency goals of section 581 of this title.

   Added 2013, No. 87 , § 1, eff. June 17, 2013.

§ 280ee. Broadband Expansion Loan Program.

1. Creation.  There is established within the Authority the Vermont Broadband Expansion Loan Program, the purpose of which is to enable the Authority to make loans that expand broadband service to unserved and underserved Vermonters as part of a plan to achieve universal broadband coverage in a municipality or communications union district.
2. Intent.  It is understood that loans under the Program may be high-risk loans to likely start-up businesses and therefore losses in the Program may be higher than the Authority's historical loss rate. Loans shall be underwritten by the Authority utilizing underwriting parameters that acknowledge the higher risk nature of these loans. The Authority shall not make a loan unless the Authority has a reasonable expectation of the long-term viability of the business. The Program is intended to provide start-up loans until such time as the borrower can refinance the loans through, for example, the municipal revenue bond market.
3. Requirements.
   1. The Authority shall make loans for start-up and expansion of broadband projects in unserved and underserved locations as part of a plan to achieve universal broadband coverage in a municipality or communications union district.
   2. The Authority shall establish policies and procedures for the Program necessary to ensure the expansion of broadband availability to the largest number of Vermont addresses as possible. The policies shall specify that:
      1. loans may be made in an amount of up to $4,000,000.00;
      2. eligible borrowers are:
         1. communications union districts;
         2. Internet service providers working in conjunction with a communications union district to expand broadband service to unserved and underserved locations as part of a plan to achieve universal broadband coverage in the district; and
         3. Internet service providers working in conjunction with a municipality that was not part of a communications union district prior to June 1, 2021 to expand broadband service to unserved and underserved locations as part of a plan to achieve universal broadband coverage in such municipality;
      3. interest and principal may be deferred up to three years;
      4. a maximum of $10,800,000.00 in Authority loans may be outstanding under the Program commencing on June 20, 2019;
      5. the provider shall offer to all customers broadband service that is capable of speeds of at least 100 Mbps symmetrical; and
      6. not more than one-sixth of the total allowable loans under this Program shall be available to eligible borrowers under subdivision (2)(B)(iii) of this subsection (c).
   3. To ensure the limited funding available through the Program supports the highest-quality broadband available to the most Vermonters and prioritizes delivering services to the unserved and underserved, the Authority shall consult with the Department of Public Service and the Vermont Community Broadband Board.
4. On or before January 1, 2020, and annually thereafter, the Authority shall submit a report of its activities pursuant to this section to the Senate Committee on Finance and the House Committees on Commerce and Economic Development and on Energy and Technology. Each report shall include operating and financial statements for the two most recently concluded State fiscal years. In addition, each report shall include information on the Program portfolio, including the number of projects financed; the amount, terms, and repayment status of each loan; and a description of the broadband projects financed in whole or in part by the Program.

   Added 2019, No. 79 , § 15, eff. June 20, 2019; amended 2021, No. 20 , § 45; 2021, No. 71 , § 9, eff. June 8, 2021.

§ 280ff. Funding.

1. The State Treasurer, in consultation with the Secretary of Administration, shall negotiate an agreement with the Authority incorporating the provisions of this section and consistent with the requirements of this subchapter.
2. State appropriations to the Authority are based on the Authority's contributions to loan loss reserves for the Program in accordance with generally accepted accounting principles. Any difference between the actual loan losses incurred by the Authority in a fiscal year shall be adjusted in the following year's appropriation.
   1. This is a revolving loan program.

      The accumulated total of the appropriation shall not exceed $8,500,000.00 over the life of the Program.

      The Authority shall absorb its historical loan loss reserve rate before any State funds are expended.

      Additionally, the Authority shall absorb up to $3,000,000.00 in Program losses shared with the State on a pro rata basis.

      Added 2019, No. 79 , § 15, eff. June 20, 2019; amended 2021, No. 71 , § 10, eff. June 8, 2021.

§§ 251-265. Repealed. 1973, No. 197 (Adj. Sess.), § 4.

§§ 281-285. Repealed. 2003, No. 164 (Adj. Sess.), § 7.

§ 290. Definitions.

For purposes of this chapter:

1. "Follow-on investment" means any investment in a Vermont firm following the initial investment.
2. "Fund manager" means the investment management firm responsible for creating the fund, securing capital commitments, and implementing the fund's investment strategy, consistent with the requirements of this section. The fund manager shall be paid a fee that reflects a percentage of the fund's capital under management and a performance-fee share based on the fund's economic performance, as determined by the Authority.
3. "Seed capital" means first, nonfamily, nonfounder investment in the form of equity or convertible securities issued by a firm that had, in the 12 months preceding the date of the funding commitment, annual gross sales of less than $3,000,000.00.

   Added 2009, No. 54 , § 25, eff. June 1, 2009.

§ 291. Entrepreneurs' Seed Capital Fund; authorization; limitations.

1. The Vermont Economic Development Authority shall cause to be formed a private investment equity fund to be named "the Entrepreneurs' Seed Capital Fund" or "the Fund" for the purpose of increasing the amount of investment capital provided to new Vermont firms or to existing Vermont firms for the purpose of expansion. The Authority may contract with one or more persons for the operation of the Fund as Fund manager. Such contract shall contain the terms and conditions pursuant to which the Fund shall be managed to meet the Fund's objective of providing seed capital to Vermont firms. The terms of the contract shall require that, if the Fund manager does not meet the investment criteria specified in the contract, the Fund manager may not be awarded the performance fee.
2. The Fund shall be formed as a limited partnership pursuant to Title 11 and shall be subject to all the following:
   1. The Fund shall not invest in any firm in which any interest in that firm is held by an investor of the Fund or by the spouse, children, or other relative of the investor.
   2. The Fund shall invest at least 40 percent of its total capital in initial investment in firms that had in the 12 months preceding the date of the funding commitment annual gross sales of less than $1,000,000.00 and may reserve the remainder of its capital for follow-on investments in these businesses, as appropriate.
   3. 1. Before the Fund makes any investments, the Fund shall have and maintain a board of five advisors who shall be appointed as follows: two shall be appointed by the Authority, two shall be appointed by the Fund manager, and one shall be appointed jointly by the Authority and the Fund manager. (3) (A) Before the Fund makes any investments, the Fund shall have and maintain a board of five advisors who shall be appointed as follows: two shall be appointed by the Authority, two shall be appointed by the Fund manager, and one shall be appointed jointly by the Authority and the Fund manager.
      2. The appointing authorities shall coordinate their appointments to ensure that the Board comprises advisors with diverse professional and personal backgrounds and experiences.

         The Board of Advisors shall represent solely the economic interest of the State with respect to the management of the Fund and shall have no civil liability for the financial performance of the Fund.

         The Board of Advisors shall be advised of investments made by the Fund and shall have access to all information held by the Fund with respect to investments made by the Fund.

   4. The Fund, within 120 days after the close of each fiscal year of its operations, shall issue a report that includes an audited financial statement certified by an independent certified public accountant. The report also shall include a compilation of the firm data required by subsection (d) of this section. These data shall be reported in a manner that does not disclose competitive or proprietary information, as determined by the Authority. This report shall be distributed to the Governor and the Senate Committee on Economic Development, Housing and General Affairs and the House Committee on Commerce and Economic Development and made available to the public. The report shall include a discussion of the Fund's impact on the Vermont economy and employment.
   5. The Fund shall not make distributions of more than 75 percent of its net profit to its investors during its first five years of operation.
   6. No person shall be allocated more than 20 percent of the available tax credits. For the purposes of determining allocation, the attribution rules of Section 318 of the Internal Revenue Code in effect as of June 12, 2004 shall apply.
   7. The capitalization of the Fund is not limited under this section; however, only the first $7,150,000.00 raised from Vermont taxpayers on or before January 1, 2020, shall be eligible for partial tax credits as specified in 32 V.S.A. § 5830b .
   8. All investments and related business dealings using funds that qualify for partial tax credits under 32 V.S.A. § 5830b shall be subject to the following restrictions:
      1. The investments shall be restricted to Vermont firms, which for the purposes of this chapter means that their Vermont apportionment equals or exceeds 50 percent, using the apportionment rules under 32 V.S.A. § 5833 , and they maintain headquarters and a principal facility in Vermont. Any funds invested in Vermont firms shall be used for the purpose of enhancing their Vermont operations. Investment shall be restricted to firms that export the majority of their products and services outside the State or add substantial value to products and materials within the State. In its investments, the Fund shall give priority to new firms and existing firms that are developing new products, and shall take into consideration any impact on in-state competition and also whether the investment will encourage economic activity that would not occur but for the Fund investment.
      2. Each Fund investment in any one firm, in any 12-month period shall be limited to a maximum of ten percent of the Fund's capitalization and, for the life of the Fund, to a maximum of 20 percent of the Fund's total capitalization.
      3. At least two-thirds of the monies invested by the Fund and qualifying for a tax credit under 32 V.S.A. § 5830b shall at all times be invested in the form of equity or convertible securities unless the Fund manager determines it is reasonable and necessary to pursue temporarily the generally accepted business practice of earning interest on working funds deposited in relatively secure accounts such as savings and money market funds.
3. Any firm receiving monies from the Fund must report to the Fund manager the following information regarding its activities in the State over the calendar year in which the investment occurred:
   1. The total amount of private investment received.
   2. The total number of persons employed as of December 31.
   3. The total number of jobs created and retained, which also shall indicate for each job the corresponding job classification, hourly wage and benefits, and whether it is part-time or full-time.
   4. Total annual payroll.
   5. Total sales revenue.
4. The Authority, in consultation with the Fund manager, shall establish reasonable standards and procedures for evaluating potential recipients of Fund monies. The Authority shall make available to the general public a report of all firms that receive Fund investments and also indicate the date of the investment, the amount of the investment, and a description of the firm's intended use of the investment. This report shall be updated at least quarterly.
5. Information and materials submitted by a business receiving monies from the Fund shall be available to the Auditor of Accounts in connection with the performance of duties under 32 V.S.A. § 163 ; provided, however, that the Auditor of Accounts shall not disclose, directly or indirectly, to any person any proprietary business information.

   Added 2003, No. 164 (Adj. Sess.), § 6, eff. June 12, 2004; amended 2005, No. 184 (Adj. Sess.), § 17a; 2009, No. 54 , § 25, eff. June 1, 2009; 2021, No. 74 , § H.16.

§ 292. Repealed. 2009, No. 54, § 26, eff. June 1, 2009.

§ 293. Repealed. 2005, No. 184 (Adj. Sess.), § 17c.

§ 301. Short title.

This chapter may be cited as the "Vermont Housing and Conservation Trust Fund Act."

Added 1987, No. 88 , § 1, eff. June 11, 1987.

§ 302. Policy, findings, and purpose.

1. The dual goals of creating affordable housing for Vermonters, and conserving and protecting Vermont's agricultural land, forestland, historic properties, important natural areas, and recreational lands are of primary importance to the economic vitality and quality of life of the State.
2. In the best interests of all of its citizens and in order to improve the quality of life for Vermonters and to maintain for the benefit of future generations the essential characteristics of the Vermont countryside, and to support farm, forest, and related enterprises, Vermont should encourage and assist in creating affordable housing and in preserving the State's agricultural land, forestland, historic properties, important natural areas and recreational lands, and in keeping conserved agricultural land in production and affordable for future generations of farmers.
3. It is the purpose of this chapter to create the Vermont Housing and Conservation Trust Fund to be administered by the Vermont Housing and Conservation Board to further the policies established by subsections (a) and (b) of this section.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 2011, No. 118 (Adj. Sess.), § 1; 2011, No. 142 (Adj. Sess.), § 3, eff. May 15, 2012.

§ 303. Definitions.

As used in this chapter:

1. "Board" means the Vermont Housing and Conservation Board established by this chapter.
2. "Fund" means the Vermont Housing and Conservation Trust Fund established by this chapter.
3. "Eligible activity" means any activity which will carry out either or both of the dual purposes of creating affordable housing and conserving and protecting important Vermont lands, including activities which will encourage or assist:
   1. the preservation, rehabilitation, or development of residential dwelling units that are affordable to:
      1. lower income Vermonters; or
      2. for owner-occupied housing, Vermonters whose income is less than or equal to 120 percent of the median income based on statistics from State or federal sources;
   2. the retention of agricultural land for agricultural use, and of forestland for forestry use;
   3. the protection of important wildlife habitat and important natural areas;
   4. the preservation of historic properties or resources;
   5. the protection of areas suited for outdoor public recreational activity;
   6. the protection of lands for multiple conservation purposes, including the protection of surface waters and associated natural resources;
   7. the development of capacity on the part of an eligible applicant to engage in an eligible activity.
4. "Eligible applicant" means any:
   1. municipality;
   2. State agency as defined in section 6301a of this title;
   3. nonprofit organization qualifying under Section 501(c)(3) of the Internal Revenue Code; or
   4. cooperative housing organization, the purpose of which is the creation or retention of affordable housing for lower income Vermonters and the bylaws of which require that such housing be maintained as affordable housing for lower income Vermonters on a perpetual basis.
5. "Lower income" means less than or equal to the median income based on statistics from State or federal sources.
6. "Important natural area" means any area containing one or more endangered species as defined in chapter 123 of this title or any area essential to maintaining the ecological diversity or natural heritage of the State.
7. "Historic property or resource" means any building, structure, object, district, area, or site that is significant in the history, architecture, archeology, or culture of this State, its communities, or the nation.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 2011, No. 138 (Adj. Sess.), § 29; 2011, No. 142 (Adj. Sess.), § 3, eff. May 15, 2012; 2015, No. 157 (Adj. Sess.), § T.3.

§§ 304-310. Repealed. 1973, No. 197 (Adj. Sess.), § 4.

§ 311. Establishment and Organization.

1. There is created and established a body politic and corporate to be known as the "Vermont Housing and Conservation Board" to carry out the provisions of this chapter. The Board is constituted a public instrumentality exercising public and essential governmental functions, and the exercise by the Board of the powers conferred by this chapter shall be deemed and held to be the performance of an essential governmental function of the State. The Board is exempt from licensure under 8 V.S.A. chapter 73.
2. The Board shall consist of the following 11 members:
   1. The Secretary of Agriculture, Food and Markets or designee.
   2. The Secretary of Human Services or designee.
   3. The Secretary of Natural Resources or designee.
   4. The Executive Director of the Vermont Housing Finance Agency or designee.
   5. Three public members appointed by the Governor with the advice and consent of the Senate, who shall be residents of the State and who shall be experienced in creating affordable housing or conserving and protecting Vermont's agricultural land and forestland, historic properties, important natural areas, or recreational lands, one of whom shall be a representative of lower income Vermonters and one of whom shall be a farmer as defined in 32 V.S.A. § 3752(7) .
   6. One public member appointed by the Speaker of the House, who shall not be a member of the General Assembly at the time of appointment.
   7. One public member appointed by the Senate Committee on Committees, who shall not be a member of the General Assembly at the time of appointment.
   8. Two public members appointed jointly by the Speaker of the House and the President Pro Tempore of the Senate as follows:
      1. One member from the nonprofit affordable housing organizations that qualify as eligible applicants under subdivision 303(4) of this title who shall not be an employee or board member of any of those organizations at the time of appointment.
      2. One member from the nonprofit conservation organizations whose activities are eligible under subdivision 303(3) of this title who shall not be an employee or member of the board of any of those organizations at the time of appointment.
3. The public members shall serve terms of three years beginning February 1 of the year of appointment. However, two of the public members first appointed by the Governor shall serve initial terms of one year; and the public members first appointed by the Speaker and Committee on Committees shall serve initial terms of two years. A vacancy occurring among the public members shall be filled by the respective appointing authority for the balance of the unexpired term. A member may be reappointed.
4. Annually, the Board shall elect from among its public members a chair and vice chair. The Board may elect officers as it may determine. Meetings shall be held at the call of the Chair or at the request of three members. A majority of the sitting members shall constitute a quorum and action taken by the Board under the provisions of this chapter may be authorized by a majority of the members present and voting at any regular or special meeting.
5. Members other than ex officio members shall be entitled to per diem authorized under 32 V.S.A. § 1010 for each day spent in the performance of their duties and each member shall be reimbursed from the Fund for his or her reasonable expenses incurred in carrying out his or her duties under this chapter.
6. The Board shall employ the Executive Director to administer, manage and direct the affairs and business of the Board, subject to the policies, control, and direction of the members. The Board may employ technical experts and other officers, agents, and employees as are necessary to effect the purposes of this chapter, and may fix their qualifications, duties, and compensation. The Board shall use the Office of the Attorney General for legal services.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 1987, No. 203 (Adj. Sess.), § 18, eff. May 27, 1988; 1995, No. 190 (Adj. Sess.), § 1(b); 2003, No. 42 , § 2, eff. May 27, 2003; 2009, No. 1 (Sp. Sess.), § E.813; 2009, No. 1 56 (Adj. Sess.), §§ E.810.1, E.810.2; 2011, No. 142 (Adj. Sess.), § 3, eff. May 15, 2012.

§ 312. Creation of Vermont Housing and Conservation Trust Fund.

There is created a special fund in the State Treasury to be known as the "Vermont Housing and Conservation Trust Fund." The Fund shall be administered by the Board and expenditures therefrom shall only be made to implement and effectuate the policies and purposes of this chapter. The Fund shall be comprised of 50 percent of the revenue 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, approved by the Board. Unexpended balances and any earnings shall remain in the Fund for use in accord with the purposes of this chapter.

Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 1997, No. 156 (Adj. Sess.), § 40; 1999, No. 49 , § 79.

§ 313. Expenditure of bond proceeds.

Any proceeds of State bonds issued in support of activities under this chapter shall be used exclusively for the funding of long-term, tangible capital investments and those capital expenses allowed under federal laws governing the use of State bond proceeds as determined with the guidance of the State of Vermont's bond counsel. No bond proceeds shall be used to fund the operational expenses of the Board. For purposes of this section, "operational expenses" shall include costs related to persons directly employed or under contract to provide administrative, clerical, financial, lobbying, policy analysis, or research services.

Added 1991, No. 256 (Adj. Sess.), § 21a, eff. June 9, 1992.

§ 314. Affordable housing bond; investment. Section 314 repealed on July 1, 2039.

The Vermont Housing and Conservation Board shall use the proceeds of bonds, notes, and other obligations issued by the Vermont Housing Finance Agency pursuant to subdivision 621(22) of this title and transferred to the Vermont Housing and Conservation Trust Fund to fund the creation and improvement of owner-occupied and rental housing for Vermonters with very low to middle income, in areas targeted for growth and reinvestment, as follows:

1. not less than 25 percent of the housing shall be targeted to Vermonters with very low income, meaning households with income below 50 percent of area median income;
2. not less than 25 percent of the housing shall be targeted to Vermonters with moderate income, meaning households with income between 80 and 120 percent of area median income; and
3. the remaining housing shall be targeted to Vermonters with income that is less than or equal to 120 percent of area median income, consistent with the provisions of this chapter.

   Added 2017, No. 85 , § I.2; amended 2017, No. 85 , § I.11(a).

§ 321. General powers and duties.

1. The Board shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including those general powers provided to a business corporation by Title 11A and those general powers provided to a nonprofit corporation by Title 11B and including, without limitation of the general powers under Titles 11A and 11B, the power to:
   1. upon application from an eligible applicant in a form prescribed by the Board, provide funding in the form of grants or loans for eligible activities;
   2. enter into cooperative agreements with private organizations or individuals or with any agency or instrumentality of the United States or of this State to carry out the purposes of this chapter;
   3. issue rules in accordance with 3 V.S.A. chapter 25 for the purpose of administering the provisions of this chapter;
   4. transfer funds to the Department of Housing and Community Development to carry out the purposes of this chapter;
   5. make and execute all legal documents necessary or convenient for the exercise of its powers and functions under this chapter, including legal documents that may be made and executed with the State or any of its agencies or instrumentalities, with the United States or any of its agencies or instrumentalities, or with private corporations or individuals;
   6. receive and accept grants from any source to be held, used, or applied or awarded to carry out the purposes of this chapter subject to the conditions upon which the grants, aid, or contributions may be made;
   7. make and publish rules and regulations respecting its housing programs and such other rules and regulations as are necessary to effectuate its corporate purposes; and
   8. do any and all things necessary or convenient to effectuate the purposes and provisions of this chapter and to carry out its purposes and exercise the powers given and granted in this chapter.
2. 1. The Board shall seek out and fund nonprofit organizations and municipalities that can assist any region of the State that has high housing prices, high unemployment, or low per capita incomes in obtaining grants and loans under this chapter for perpetually affordable housing. (b) (1)  The Board shall seek out and fund nonprofit organizations and municipalities that can assist any region of the State that has high housing prices, high unemployment, or low per capita incomes in obtaining grants and loans under this chapter for perpetually affordable housing.
   2. The Board shall administer the "HOME" affordable housing program that was enacted under Title II of the Cranston-Gonzalez National Affordable Housing Act (Title II, P.L. 101-625, 42 U.S.C. 12701-12839). The State of Vermont, as a participating jurisdiction designated by Department of Housing and Urban Development, shall enter into a written memorandum of understanding with the Board, as subrecipient, authorizing the use of HOME funds for eligible activities in accordance with applicable federal law and regulations. HOME funds shall be used to implement and effectuate the policies and purposes of this chapter related to affordable housing. The memorandum of understanding shall include performance measures and results that the Board will annually report on to the Vermont Department of Housing and Community Development.
3. On behalf of the State of Vermont, the Board shall be the exclusive designated entity to seek and administer federal affordable housing funds available from the Department of Housing and Urban Development under the national Housing Trust Fund that was enacted under HR 3221, Division A, Title 1, Subtitle B, Section 1131 of the Housing and Economic Reform Act of 2008 (P.L. 110-289) to increase perpetually affordable rental housing and home ownership for low and very low income families. The Board is also authorized to receive and administer federal funds or enter into cooperative agreements for a shared appreciation and/or community land trust demonstration program that increases perpetually affordable homeownership options for lower income Vermonters and promotes such options both within and outside Vermont.
4. On behalf of the State of Vermont, the Board shall seek and administer federal farmland protection and forestland conservation funds to facilitate the acquisition of interests in land to protect and preserve in perpetuity important farmland for future agricultural use and forestland for future forestry use. Such funds shall be used to implement and effectuate the policies and purposes of this chapter. In seeking federal farmland protection and forestland conservation funds under this subsection, the Board shall seek to maximize State participation in the federal Wetlands Reserve Program and other programs as is appropriate to allow for increased or additional implementation of conservation practices on farmland and forestland protected or preserved under this chapter.
5. The Board shall inform all grant applicants and recipients of funds derived from the annual capital appropriations and State bonding act of the following: "The Vermont Housing and Conservation Trust Fund is funded by the taxpayers of the State of Vermont, at the direction of the General Assembly, through the annual Capital Appropriation and State Bonding Act." An appropriate placard shall, if feasible, be displayed at the location of the proposed grant activity.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 1991, No. 93 , § 16a, eff. June 26, 1991; 1995, No. 46 , § 27; 1991, No. 62 , § 54, eff. April 26, 1995; 2005, No. 71 , § 219a; 2009, No. 1 (Sp. Sess.), § E.813.1; 2009, No. 1 10 (Adj. Sess.), § 12, eff. May 18, 2010; 2009, No. 156 (Adj. Sess.), § E.810, eff. June 3, 2010; 2011, No. 142 (Adj. Sess.), § 3, eff. May 15, 2012; 2015, No. 11 , § 7; 2019, No. 129 (Adj. Sess.), § 28; 2019, No. 138 (Adj. Sess.), § 12, eff. July 2, 2020.

§ 322. Allocation system.

1. In determining the allocation of funds available for the purposes of this chapter, the Board shall give priority to projects that combine the dual goals of creating affordable housing and conserving and protecting Vermont's agricultural land, historic properties, important natural areas or recreation lands and also shall consider, but not be limited to, the following factors:
   1. the need to maintain balance between the dual goals in allocating resources;
   2. the need for a timely response to unpredictable circumstances or special opportunities to serve the purposes of this chapter;
   3. the level of funding or other participation by private or public sources in the activity being considered for funding by the Board;
   4. what resources will be required in the future to sustain the project;
   5. the need to pursue the goals of this chapter without displacing lower income Vermonters;
   6. the long-term effect of a proposed activity and, with respect to affordable housing, the likelihood that the activity will prevent the loss of subsidized housing units and will be of perpetual duration;
   7. geographic distribution of funds.
2. The Board's allocation system shall include a method, defined by rule, that evaluates the need for, impact, and quality of activities proposed by applicants.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 1997, No. 156 (Adj. Sess.), § 45, eff. April 29, 1998.

§ 323. Annual report.

Prior to January 31 of each year, the Board shall submit a report concerning its activities to the Governor and to the House Committees on Agriculture and Forestry, on Appropriations, on Corrections and Institutions, on Energy and Technology, on Natural Resources, Fish, and Wildlife, and on Ways and Means and the Senate Committees on Agriculture, on Appropriations, on Finance, on Institutions, and on Natural Resources and Energy. The report shall include the following:

1. a list and description of activities funded by the Board during the preceding year, including commitments made to fund projects through housing bond proceeds pursuant to section 314 of this title, and project descriptions, levels of affordability, and geographic location;
2. a list of contributions received by the Board, whatever their form or nature, and the source thereof, unless anonymity is a condition of a particular contribution;
3. a full financial report of the Board's activities, including a special accounting of all activities from July 1 through December 31 of the year preceding the legislative session during which the report is submitted;
4. if more than 70 percent of the funds allocated by the Board during the previous year were allocated to either one of the dual goals of this chapter, as established in subsection 302(a) of this title, the Board shall set forth its reasons for not allocating funds more equally between the two.

   Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 1991, No. 93 , § 16, eff. June 26, 1991; 2017, No. 85 , § I.3; 2017, No. 113 (Adj. Sess.), § 44.

§ 324. Stewardship.

If an activity funded by the Board involves acquisition by the State of an interest in real property for the purpose of conserving and protecting agricultural land or forestland, important natural areas, or recreation lands, the Board, in its discretion, may make a one-time grant to the appropriate State agency or municipality. The grant shall not exceed ten percent of the current appraised value of that property interest and shall be used to support its proper management or maintenance, or both.

Added 1987, No. 88 , § 1, eff. June 11, 1987; amended 2011, No. 142 (Adj. Sess.), § 3, eff. May 15, 2012.

§ 325. Condemnation prohibited.

The Board shall not have the authority or power to acquire property for the purposes of this chapter through condemnation or through the exercise of the power of eminent domain.

Added 1987, No. 88 , § 1, eff. June 11, 1987.

§ 325a. Conservation easement review appraisals.

The Vermont Housing and Conservation Board shall ensure on a periodic basis that review appraisals are conducted of conservation easements proposed to be acquired pursuant to this chapter.

Added 1995, No. 185 (Adj. Sess.), § 14a, eff. May 22, 1996.

§ 325b. State of Vermont executory interest in easements.

1. As used in this section:
   1. "Qualified organization" shall have the same meaning as in section 6301a of this title; and
   2. "State agency" shall have the same meaning as in section 6301a of this title.
2. The Agency of Agriculture, Food and Markets may hold an executory interest in agricultural conservation easements acquired by the Board under chapter 155 of this title when the acquisition of an interest in the agricultural conservation easement was financed by monies expended, in whole or in part, from the Housing and Conservation Trust Fund.
3. An agricultural conservation easement acquired by the Board under chapter 155 of this title with monies expended, in whole or in part, from the Fund shall be subject to a memorandum of understanding between the Board, the Agency of Agriculture, Food and Markets, and any other co-holder of the agricultural conservation easement regarding oversight, performance, and enforcement of the agricultural conservation easement.
4. The Agency of Agriculture, Food and Markets may exercise its executory interest in an agricultural conservation easement interest acquired under chapter 155 of this title if:
   1. the Board ceases to exist and its interest in the agricultural conservation easement is not otherwise released and conveyed in accordance with law;
   2. the Board releases and conveys its agricultural conservation easement interests, in whole or in part, to a State agency, municipality, qualified holder, or qualified organization in accordance with the laws of the State of Vermont; or
   3. a significant violation of the terms and conditions of an agricultural conservation easement is not resolved in accordance with the memorandum of understanding required under subsection (c) of this section for the agricultural conservation easement.
5. The Board annually shall monitor or cause to be monitored a conserved property subject to an agricultural conservation easement for compliance with the terms and conditions of the agricultural conservation easement. The Board shall report a significant violation of the terms and conditions of an agricultural conservation easement to the Secretary of Agriculture, Food and Markets. The Secretary of Agriculture, Food and Markets may recommend to the Board or the Attorney General a course of action to be taken to address a violation of the terms and conditions of an agricultural conservation easement in accordance with the memorandum of understanding required under subsection (c) of this section.

   Added 2015, No. 172 (Adj. Sess.), § E.811.

§ 325m. Rural Economic Development Initiative.

1. Definitions.  As used in this subchapter:
   1. "Rural area" means a county of the State designated as "rural" or "mostly rural" by the U.S. Census Bureau in its most recent decennial census.
   2. "Small town" means a town in the State with a population of less than 5,000 at the date of the most recent U.S. Census Bureau decennial census.
2. Establishment.  There is created the Rural Economic Development Initiative to be administered by the Vermont Housing and Conservation Board for the purpose of promoting and facilitating community economic development in the small towns and rural areas of the State. The Rural Economic Development Initiative shall collaborate with municipalities, businesses, regional development corporations, regional planning commissions, and other appropriate entities to access funding and other assistance available to small towns and businesses in rural areas of the State when existing State resources or staffing assistance is not available.
3. Services; access to funding.  The Rural Economic Development Initiative shall provide the following services to small towns and businesses in rural areas:
   1. identification of grant or other funding opportunities that facilitate business development, infrastructure development, or other economic development opportunities;
   2. technical assistance in writing grants, accessing other funding, coordination with providers of grants or other funding, strategic planning for the implementation or timing of activities funded by grants or other funding, and compliance with the requirements of grant awards or awards of other funding.
4. Priority.  In providing services under this section, the Rural Economic Development Initiative shall give first priority to projects that have received necessary State or municipal approval and that are ready for construction or implementation.
5. Priority projects.  The Rural Economic Development Initiative shall seek to assist the following priority types of projects:
   1. milk plants, milk handlers, or dairy products, as those terms are defined in 6 V.S.A. § 2672 ;
   2. outdoor recreation and equipment enterprises;
   3. value-added food and forest products enterprises;
   4. farm operations, including phosphorus removal technology for farm operations;
   5. coworking or business generator and accelerator spaces;
   6. commercial composting facilities; and
   7. restoration and rehabilitation of historic buildings in community centers.
6. Coordination.  In providing services under this section, the Rural Economic Development Initiative shall coordinate with the Secretary of Commerce and Community Development, regional development corporations, and regional planning commissions.
7. Report.  Beginning on January 31, 2019, and annually thereafter, the Rural Economic Development Initiative shall submit to the Senate Committees on Agriculture and on Economic Development, Housing and General Affairs and the House Committees on Agriculture and Forestry and on Commerce and Economic Development a report regarding the activities and progress of the Initiative as part of the report of the Vermont Farm and Forest Viability Program. The report shall summarize the Initiative's activities in the preceding year; evaluate the effectiveness of the services provided by the Initiative; provide an accounting of the grants or other funding that the Initiative facilitated or helped secure; and recommend any changes to the program to further economic development in small towns and rural areas of the State.

   Added 2017, No. 77 , § 1; amended 2017, No. 77 , § 12; 2017, No. 194 (Adj. Sess.), § 1.

§ 326. Findings, policies, and goals.

1. The General Assembly finds that Vermont's economic prosperity depends on the establishment and achievement of the following policies and goals:
   1. The dual goals of creating quality jobs and conserving and protecting Vermont's social and natural environments are of primary importance to economic vitality and the quality of life of Vermont.
   2. The idea of combining the dual goals of economic vitality and environmental quality is known as sustainable economic development.
   3. Sustainable economic development is a growing national and international public policy trend for the investment of private and governmental funds.
   4. Vermont's unique environmental image as a function of State policy and of the policies of our existing educational institutions provides an opportunity to position the State as a primary sustainable economic development educational center.
   5. The goal of quality job creation as part of the State's economic development policy is dependent on providing support for the start-up and expansion of small businesses and micro-business sectors of our economy.
   6. The goal of creating quality jobs or family-wage jobs is in part dependent upon nurturing businesses in growing sectors of the national and international economy, including companies involved with:
      1. environmental technologies;
      2. environmental equipment and services;
      3. energy efficiency;
      4. renewable energy;
      5. pollution abatement;
      6. specialty foods;
      7. water and wastewater systems;
      8. solid waste and recycling technologies;
      9. wood products and other natural resource based or "value added" industries;
      10. sustainable agriculture; and
      11. existing businesses, including larger manufacturing firms, striving to minimize their impact and waste through environmentally sound products and processes.
   7. The goal of creating quality jobs by nurturing the businesses listed in subdivision (6) of this subsection is consistent with the goal of protecting our natural and social environments, and with the goal of positioning the State as a primary sustainable economic development educational center.
   8. Support for sustainable economic development includes the need to provide:
      1. Increased financial resources to fund existing programs for the start-up and expansion of small businesses, including revolving loan programs, peer lending programs, technical assistance programs, and marketing programs.
      2. Capital access to those businesses too large or too small to obtain funds from existing programs.
      3. An organization designed to coordinate the leveraging of federal, State, local, and private resources and to stimulate the development of public-private partnerships.
      4. An increased array of economic development tools, including flexible manufacturing networks, sectoral development, and product development funds.
      5. Funding for eligible activities as recommended in the Vermont Economic Progress Council's 10-year plan.
      6. Professional evaluation and accountability of funded economic development activities.
      7. Coordination between the State's economic development and environmental protection policies.
2. It is the purpose of this chapter to create the Sustainable Jobs Fund Program, to be administered by the nonprofit corporation formed under section 328 of this title, to further the policies and goals established in subsection (a) of this section.

   Added 1995, No. 46 , § 15, eff. April 20, 1995.

§ 327. Definitions.

As used in this chapter:

1. "Sustainable jobs" is defined as jobs created from business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting and sustaining the human and natural resources that will be needed in the future.
2. "Eligible activity" means any activity that will carry out the dual purposes of creating quality jobs, as defined by the ten-year economic development plan adopted by the Agency of Commerce and Community Development, and conserving and preserving Vermont's social and natural environment, including activities which will encourage or assist, but are not limited to:
   1. the start-up or expansion of the small business and micro-business sector; and
   2. existing businesses striving to minimize their impact and waste through environmentally sound products and processes.
3. "Eligible applicant" means any for profit or nonprofit business entity that fulfills the purposes of this chapter.

   Added 1995, No. 46 , § 15, eff. April 20, 1995; amended 1995, No. 190 (Adj. Sess.), § 1(a).

§ 328. Creation of the Sustainable Jobs Fund Program.

1. There is created the Sustainable Jobs Fund Program to create quality jobs that are compatible with Vermont's natural and social environment.
2. The Vermont Economic Development Authority shall incorporate a nonprofit corporation pursuant to the provisions of subdivision 216(14) of this title to administer the Sustainable Jobs Fund Program, and to fulfill the purposes of this chapter by means of loans or grants to eligible applicants for eligible activities, provided that any funds contributed to the Program by the Authority under subsection (c) of this section shall be used for lending purposes only.
3. 1. Notwithstanding the provisions of subdivision 216(14) of this title, the Authority may contribute not more than $1,000,000.00 to the capital of the corporation formed under this section, and the Board of Directors of the corporation formed under this section shall consist of: (c) (1)  Notwithstanding the provisions of subdivision 216(14) of this title, the Authority may contribute not more than $1,000,000.00 to the capital of the corporation formed under this section, and the Board of Directors of the corporation formed under this section shall consist of:
      1. the Secretary of Commerce and Community Development or designee;
      2. the Secretary of Agriculture, Food and Markets or designee;
      3. a director appointed by the Governor; and
      4. eight independent directors, no more than two of whom shall be State government employees or officials, and who shall be selected as vacancies occur by vote of the existing directors from a list of names offered by a nominating committee of the Board created for that purpose.
   2. 1. Each independent director shall serve a term of three years or until his or her earlier resignation. (2) (A) Each independent director shall serve a term of three years or until his or her earlier resignation.
      2. A director may be reappointed, but no independent director and no director appointed by the Governor shall serve for more than three terms.
      3. The director appointed by the Governor shall serve at the pleasure of the Governor and may be removed at any time with or without cause.
   3. A director of the Board who is or is appointed by a State government official or employee shall not be eligible to hold the position of Chair, Vice Chair, Secretary, or Treasurer of the Board.
4. [Repealed.]
5. The Agency of Commerce and Community Development shall have the authority and responsibility for the administration and implementation of the Program.
6. The Vermont Sustainable Jobs Fund Program shall work collaboratively with the Agency of Agriculture, Food and Markets to assist the Vermont slaughterhouse industry in supporting its efforts at productivity and sustainability.

   Added 1995, No. 46 , § 15, eff. April 20, 1995; amended 1995, No. 190 (Adj. Sess.), § 1(b); 2003, No. 122 (Adj. Sess.), § 225; 2009, No. 146 (Adj. Sess.), § G18, eff. June 1, 2010; 2011, No. 52 , §§ 35a, 37, 38, eff. May 27, 2011; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2015, No. 157 (Adj. Sess.), § O.1, eff. June 2, 2016.

§ 329. Annual report.

Prior to January 31 of each year, the corporation formed under section 328 of this title shall submit a report concerning its activities to the Governor, to the House Committees on Appropriations, on Commerce and Economic Development, on Corrections and Institutions, on General, Housing, and Military Affairs, on Natural Resources, Fish, and Wildlife, and on Ways and Means and to the Senate Committees on Appropriations, on Economic Development, Housing and General Affairs, on Finance, on Institutions, and on Natural Resources and Energy. The report shall include the following information:

1. A list and description of activities funded by the Sustainable Jobs Fund Program during the preceding year.
2. A list of contributions received by the Board, whatever their form or nature, and the source thereof, unless anonymity is a condition of a particular contribution.
3. A full financial report of the activities of the Sustainable Jobs Fund Program, including a special accounting of all activities from July 1 through December 31 of the year preceding the legislative session during which the report is submitted.
4. If more than 70 percent of the funds allocated by the Sustainable Jobs Fund Program during the previous year were allocated to either one of the dual goals of this chapter in such a manner that the other goal was not achieved as established in section 326 of this title, and subdivisions 326(a)(5) and (6) of this title in particular, the Program shall set forth its reasons for the manner of allocation.
5. A summary of work completed in the Farm-to-Plate Investment Program, including progress toward meeting the program goals, information regarding any advisory panel meetings, an accounting of all revenues and expenses related to the Program, and recommendations regarding future Program activity. The report shall also include information regarding the status of State government procurement of local foods.

   Added 1995, No. 46 , § 15, eff. April 20, 1995; amended 2009, No. 54 , § 36, eff. June 1, 2009; 2019, No. 14 , § 12, eff. April 30, 2019.

§ 330. The Farm-to-Plate Investment Program; creation; outcomes; tasks; methods.

1. Creation.
   1. The Sustainable Jobs Fund Program shall establish the Vermont Farm-to-Plate Investment Program to fulfill the goals and carry out the tasks described in this section.
   2. If at least $100,000.00 in funding is not made available for the purpose of this section, the Sustainable Jobs Fund Program is encouraged but no longer required to fulfill the provisions of this section.
2. Intended outcomes.  The intended outcomes of the Farm-to-Plate Investment Program are to:
   1. Increase sustainable economic development and create jobs in Vermont's food and farm sector.
   2. Improve soils, water, and resiliency of the working landscape in the face of climate change.
   3. Improve access to healthy local foods for all Vermonters.
3. Tasks.
   1. The Vermont Farm-to-Plate Investment Program shall create a strategic plan for agricultural and food system development, which may be periodically reviewed and updated, based upon the following:
      1. Inventory Vermont's food system infrastructure by gathering existing data, studies, and analysis about the components of Vermont's food system, including:
         1. the types of foods produced in Vermont, the number of producers of each type of food, the amount of each type of food produced, and the financial viability of each food-producing sector;
         2. the types of food processors in Vermont, how much food produced in Vermont is purchased by Vermont processors, and the financial viability of the food processing sector in Vermont;
         3. the current and potential markets in which Vermont food producers and processors can sell their products;
         4. the extent of existing agricultural lands that could be expanded and the resources available to expand Vermont's food production;
         5. the potential for new farmers and food processors to enter the local food economy, the methods for new farmers to acquire land and other farm infrastructure, and the availability and barriers to farm and processing labor; and
         6. the potential for entirely new local products and the barriers to farmers and processors entering new markets.
      2. Identify gaps in the infrastructure and distribution systems and identify ways to address these gaps.
   2. The Vermont Farm-to-Plate Investment Program shall provide support for farm and food businesses, including regional food hubs, selling in all types of markets, direct and wholesale, in the State and outside the State.
   3. As an ongoing task, the Farm-to-Plate Investment Program shall use the information gathered for the strategic plan and updates to the plan to identify methods and the funding necessary to strengthen the links among producers, processors, and markets, including:
      1. supporting the work of existing farm-to-school programs to increase the purchase of local foods by Vermont schools, with a particular emphasis on procurement of nutrient-dense animal foods;
      2. supporting the work of the Working Lands Enterprise Board to strategically invest in farm and food businesses;
      3. collaborating with the Agency of Agriculture, Food and Markets and the Department of Buildings and General Services to increase procurement of local foods in accordance with 6 V.S.A. § 4601 ;
      4. collaborating with the Agency of Agriculture, Food and Markets to increase procurement of local foods by businesses and institutions;
      5. supporting initiatives that improve the marketing of foods from Vermont producers to consumers inside the State and outside of the State;
      6. supporting education and workforce development initiatives that address skill and labor needs of farm and food businesses; and
      7. informing agricultural lenders of the information collected under subdivision (1) of this subsection (c) in order to facilitate availability of farm and food sector financing.
   4. The Farm-to-Plate Investment Program Strategic Plan shall also establish measurable goals that shall be tracked over the life of the Plan, methods for the ongoing collection of data necessary to track those goals, plans for updating the Plan as needed, and appropriate methods to track the ongoing economic contribution of the farm and food sector to the Vermont economy.
4. Methods.  To accomplish the goals and carry out the ongoing tasks stated in this section, the Vermont Farm-to-Plate Investment Program may:
   1. create an advisory panel with representatives from the agricultural and business communities;
   2. hire or assign staff;
   3. seek and accept funds from private and public entities;
   4. serve as the administrative support for the Farm-to-Plate Network; and
   5. utilize technical assistance, loans, grants, or other means.
5. [Repealed.]

   Added 2009, No. 54 , § 35, eff. June 1, 2009; amended 2009, No. 3 (Sp. Sess.), § 11(b); 2009, No. 78 (Adj. Sess.), § 13a, eff. April 15, 2010; 2015, No. 11 , § 8; 2019, No. 23 , § 1; 2019, No. 131 (Adj. Sess.), § 12.

§§ 331-337. Repealed. 1999, No. 25, § 3.

§§ 341, 342. Repealed. 1999, No. 25, § 3.

§§ 351, 352. Repealed. 1999, No. 25, § 3.

§§ 361-363. Repealed. 1999, No. 25, § 3.

§§ 371-373. Repealed. 1999, No. 25, § 3.

§ 374a. Creation of the Vermont Agricultural Credit Program.

1. There is created the Vermont Agricultural Credit Program, which will provide an alternative source of sound and constructive credit to farmers and forest products businesses who are not having their credit needs fully met by conventional agricultural credit sources at reasonable rates and terms. The Program is intended to meet, either in whole or in part, the credit needs of eligible agricultural facilities and farm operations in fulfillment of one or more of the purposes listed in this subsection by making direct loans and participating in loans made by other agricultural credit providers:
   1. to encourage diversification, cooperative farming, and the development of innovative farming techniques;
   2. to increase energy efficiency and reduce energy consumption in agricultural facilities, including the construction of water pollution control facilities which implement best management practices for farm waste abatement pursuant to 6 V.S.A. chapter 215;
   3. to encourage innovative and diversified processing, marketing, and distribution of Vermont agricultural products;
   4. to assist beginning farmers to start new farms and new agricultural facilities to commence or strengthen their operations;
   5. to assist or financially strengthen existing farms; and
   6. to refinance loans incurred by eligible borrowers for any of the purposes enumerated in subdivisions (1) through (5) of this subsection.
2. No borrower shall be approved for a loan from the corporation that would result in the aggregate principal balances outstanding of all loans to that borrower exceeding the then-current maximum Farm Service Agency loan guarantee limits, or $5,000,000.00, whichever is greater.

   Added 1999, No. 25 , § 1; amended 2003, No. 67 , § 5, eff. June 16, 2003; 2005, No. 137 (Adj. Sess.), § 3; 2013, No. 199 (Adj. Sess.), § 6; 2015, No. 157 (Adj. Sess.), § A.6, eff. June 2, 2016.

§ 374b. Definitions.

As used in this chapter:

1. "Agricultural facility" means land and rights in land, buildings, structures, machinery, and equipment that is used for, or will be used for producing, processing, preparing, packaging, storing, distributing, marketing, or transporting agricultural or forest products that have been primarily produced in this State, and working capital reasonably required to operate an agricultural facility.
2. "Agricultural land" means real estate capable of supporting commercial farming or forestry, or both.
3. "Agricultural products" mean crops, livestock, forest products, and other farm or forest commodities produced as a result of farming or forestry activities.
4. "Farm ownership loan" means a loan to acquire or enlarge a farm or agricultural facility, to make capital improvements including construction, purchase, and improvement of farm and agricultural facility buildings that can be made fixtures to the real estate, to promote soil and water conservation and protection, and to refinance indebtedness incurred for farm ownership or operating loan purposes, or both.
5. "Authority" means the Vermont Economic Development Authority.
6. "Cash flow" means, on an annual basis, all income, receipts, and revenues of the applicant or borrower from all sources and all expenses of the applicant or borrower, including all debt service and other expenses.
7. "Farmer" means an individual directly engaged in the management or operation of an agricultural facility or farm operation for whom the agricultural facility or farm operation constitutes two or more of the following:
   1. is or is expected to become a significant source of the farmer's income;
   2. the majority of the farmer's assets; and
   3. an occupation in which the farmer is actively engaged, either on a seasonal or year-round basis.
8. "Farm operation" shall mean the cultivation of land or other uses of land for the production of food, fiber, horticultural, silvicultural, orchard, maple syrup, Christmas trees, forest products, or forest crops; the raising, boarding, and training of equines, and the raising of livestock; or any combination of the foregoing activities. "Farm operation" also means the storage, preparation, retail sale, and transportation of agricultural or forest commodities accessory to the cultivation or use of such land. "Farm operation" also shall mean the operation of an agritourism business on a farm subject to regulation under the Required Agricultural Practices.
9. "Forest products business" means a Vermont enterprise that is primarily engaged in managing, harvesting, trucking, processing, manufacturing, crafting, or distributing products derived from Vermont forests.
10. "Livestock" shall mean cattle, sheep, goats, equines, fallow deer, red deer, reindeer, American bison, swine, poultry, pheasant, chukar partridge, coturnix quail, ferrets, camelids and ratites, cultured trout propagated by commercial trout farms, and bees.
11. "Loan" means an operating loan or farm ownership loan, including a financing lease, provided that such lease transfers the ownership of the leased property to each lessee following the payment of all required lease payments as specified in each lease agreement.
12. "Operating loan" means a loan to purchase livestock, farm or forestry equipment, or fixtures to pay annual operating expenses of a farm operation or agricultural facility, to pay loan closing costs, and to refinance indebtedness incurred for farm ownership or operating loan purposes, or both.
13. "Program" means the Vermont Agricultural Credit Program established by this chapter.
14. "Project" or "agricultural project" means the creation, establishment, acquisition, construction, expansion, improvement, strengthening, reclamation, operation, or renovation of an agricultural facility or farm operation.
15. "Resident" means a person who is or will be domiciled in this State as evidenced by an intent to maintain a principal dwelling place in the State indefinitely and to return there if temporarily absent, coupled with an act or acts consistent with that intent, including the filing of a Vermont income tax return within 18 months of the application for a loan under this chapter. In the case of a limited liability company, partnership, corporation, or other business entity, resident means a business entity formed under the laws of Vermont, the majority of which is owned and operated by Vermont residents who are natural persons.

    Added 1999, No. 25 , § 1; amended 2003, No. 67 , § 6, eff. June 16, 2003; 2003, No. 121 (Adj. Sess.), § 89, eff. June 8, 2004; 2005, No. 137 (Adj. Sess.), § 4; 2013, No. 199 (Adj. Sess.), § 6; 2015, No. 157 (Adj. Sess.), § A.6, eff. June 2, 2016; 2019, No. 129 (Adj. Sess.), § 20.

§ 374c. Incorporation; board of directors.

The Vermont Economic Development Authority shall incorporate a nonprofit corporation to administer the Vermont agricultural credit program and to fulfill the goals and purposes of this chapter. The voting members of the Authority shall be the board of directors of the corporation, and the manager of the Authority shall serve as the president and chief executive officer of the corporation. Such corporation shall be organized and operate under the nonprofit corporation laws of the State of Vermont to the extent not inconsistent herewith. The Authority will have the power to contract with the corporation to provide staff and management needs of the corporation.

Added 1999, No. 25 , § 1.

§ 374d. General powers.

The corporation shall have the powers necessary to carry out the purposes and provisions of this chapter, including those general powers provided a business corporation by 11A V.S.A. § 3.02. In addition, the corporation shall have the power to:

1. execute contracts and all other instruments necessary for the exercise of its powers and functions under this chapter;
2. without limitation, acquire or dispose of real or personal property or any interest in real or personal property;
3. receive and accept gifts, grants, or contributions from any source, for any purpose consistent with this chapter;
4. provide or contract for consolidated processing of any aspect of the financing of eligible borrowers in order to avoid duplication;
5. procure insurance against any loss;
6. invest monies of the corporation not required for immediate use;
7. borrow money and issue notes and other evidences of indebtedness for lending and administrative and other expenses. The corporation may sell, transfer, pledge, mortgage, hypothecate, or otherwise dispose of loans under its management. Neither the full faith and credit of the State of Vermont nor any of the assets of the Authority are pledged to secure repayment of the indebtedness of the corporation;
8. consent to any modification with respect to rate of interest, time, and payment of any contract or agreement of any kind to which the corporation is a party;
9. procure or agree to the procurement of insurance, guarantees, or interest rate subsidy assistance on any notes or any other evidence of indebtedness issued to the corporation;
10. make loans or advances secured by a mortgage or a security agreement, which may be subordinate to one or more prior mortgages or security agreements, to eligible borrowers under such terms and conditions as the corporation deems prudent and consistent with the purposes of this chapter and for such fees, and at such rate or rates of interest, as determined by the corporation, provided that the interest rate or rates charged by the corporation shall not exceed the rate paid or to be paid by the corporation for monies borrowed by the corporation to fund loans plus 300 basis points;
11. take title, by foreclosure or other process available under the law, to any real or personal property where such action is necessary to protect any loan previously made by the corporation, pay all costs arising out of the legal action and acquisition from monies held in the Fund, and sell or transfer any such property to any responsible buyer. If the transfer or conveyance of assets acquired under this subdivision cannot be effected with reasonable promptness, the corporation may, in order to minimize financial losses and sustain a farm operation or agricultural facility, lease the assets owned by it to responsible persons on such terms and conditions as the corporation deems reasonable;
12. purchase prior mortgages and make payments on prior mortgages or security interests on any assets pledged as security for loans of the corporation where the purchase or payment is necessary to protect any loan previously made by the corporation. In addition, the corporation may sell, transfer, and assign a prior mortgage or prior security interest. Monies used by the corporation for the purchase of any prior mortgages, or any payments on prior mortgages, shall be withdrawn from the Fund established pursuant to section 374e of this title, and any monies derived from the sale of any prior mortgages shall be deposited in the Fund;
13. employ or contract for services with agents, consultants, legal advisors, and other experts, as may be necessary for its purposes;
14. participate in eligible and qualified loan projects with lenders, including the farm credit system, banks, and insurance companies;
15. execute lease agreements for the purpose of leasing personal property under financing leases, which leases transfer the ownership of the leased personal property to each lessee following the payment of all required lease payments as specified in each lease agreement;
16. sell loans, or portions thereof, in order to provide further funding for lending under this chapter. Proceeds from sales of loans shall be deposited in the Agricultural Credit Development Fund established under section 374e of this title;
17. establish policies and procedures consistent with the purpose of providing sound and constructive credit to eligible loan applicants; and
18. do all things necessary to carry out the purposes and provisions of this chapter.

    Added 1999, No. 25 , § 1; amended 2003, No. 7 , § 6, eff. April 25, 2003.

§ 374e. Agricultural Credit Development Fund.

The Agricultural Credit Development Fund is created and shall be used by the corporation for the purposes of this chapter. All reasonable administrative expenses of the corporation shall be paid from the Fund. The Fund shall be credited with any appropriations made by the General Assembly, all payments of principal and interest received from loans transferred or assigned to or made by the corporation, any available grants or gifts made to the corporation, the proceeds of any sale, transfer, pledge, mortgage, hypothecation, or other disposition of loans transferred or assigned to the corporation by the Authority and loans made by the corporation pursuant to this chapter, and any funds borrowed by the corporation. Monies in the Fund may, after payment of reasonable administrative expenses and debt service on the indebtedness of the corporation incurred in furtherance of its purposes under this chapter, be loaned by the corporation directly to eligible borrowers, used to purchase or acquire portions of loans made by unrelated third party lenders to eligible borrowers, or to subsidize the payment of interest on the debt of the corporation so as to lower the interest rate on loans made by the corporation to eligible borrowers.

Added 1999, No. 25 , § 1.

§ 374f. Records.

The corporation shall keep an accurate account of all its activities.

Added 1999, No. 25 , § 1; amended 2011, No. 139 (Adj. Sess.), § 6, eff. May 14, 2012.

§ 374g. Construction.

The provisions of section 218 of this title shall apply to this chapter. Information concerning loan applicants or recipients shall be kept confidential.

Added 1999, No. 25 , § 1.

§ 374h. Loan eligibility standards.

A farmer, or a limited liability company, partnership, corporation, or other business entity the majority ownership of which is vested in one or more farmers, shall be eligible to apply for a farm ownership or operating loan, provided the applicant is:

1. a resident of this State and will help to expand the agricultural economy of the State;
2. an owner, prospective purchaser, or lessee of agricultural land in the State or of depreciable machinery, equipment, or livestock to be used in the State;
3. a person of sufficient education, training, or experience in the operation and management of an agricultural facility or farm operation of the type for which the applicant requests the loan;
4. an operator or proposed operator of an agricultural facility, farm operation, or forest products business for whom the loan reduces investment costs to an extent that offers the applicant a reasonable chance to succeed in the operation and management of an agricultural facility or farm operation;
5. a creditworthy person under such standards as the corporation may establish;
6. able to provide and maintain adequate security for the loan by a mortgage on real property or a security agreement and perfected financing statement on personal property;
7. able to demonstrate that the applicant is responsible and able to manage responsibilities as owner or operator of the farm operation, agricultural facility, or forest products business;
8. able to demonstrate that the applicant has made adequate provision for insurance protection of the mortgaged or secured property while the loan is outstanding;
9. a person who possesses the legal capacity to incur loan obligations;
10. in compliance with such other reasonable eligibility standards as the corporation may establish;
11. able to demonstrate that the project plans comply with all regulations of the municipality where it is to be located and of the State of Vermont;
12. able to demonstrate that the making of the loan will be of public use and benefit;
13. able to demonstrate that the proposed loan will be adequately secured by a mortgage on real property or by a security agreement on personal property; and
14. there will be sufficient projected cash flow to service a reasonable level of debt, including the loan or loans, being considered by the corporation.

    Added 1999, No. 25 , § 1; amended 2003, No. 67 , § 7, eff. June 16, 2003; 2015, No. 157 (Adj. Sess.), § A.6, eff. June 2, 2016.

§§ 351-376. Repealed. 1973, No. 260 (Adj. Sess.), § 6, eff. April 11, 1974.

§§ 381-400. Repealed. 1999, No. 1, § 104, eff. December 31, 1999.

§ 421. Purposes.

This chapter is designed to preserve and to enhance Vermont's scenic values.

1966, No. 67 (Sp. Sess.), § 2, eff. March 14, 1966.

§ 422. Acquisition of rights and interests in land for scenery protection.

1. Power to acquire.  To further carry out the purposes set forth in section 421 of this title, the Agency of Transportation, the Departments of Forests, Parks and Recreation, Fish and Wildlife, Environmental Conservation and the Division for Historic Preservation, hereafter called Department, may acquire land and any rights and interests therein by purchase with any authorized funds, donation, device, exchange, transfer from any other governmental agency (federal, state, or local).  All proposed acquisitions, exchanges, and transfers of lands or rights therein shall be submitted to the Natural Resources Interagency Committee for review of conformance to the plan prepared under section 424 of this title.  The recommendations of the Interagency Committee on Natural Resources need not be binding on the departments.
2. Types of interests to be acquired.  The Department shall determine the types of rights and interests in land to be acquired in order to fulfill the purposes of section 421 of this title. In the case of acquisition subject to a right of occupancy and use or reconveyance, or lease, the Department shall, so far as possible, give priority to the former owner in selecting the grantee or lessee, as the case may be.
3. Injunction.  In any case where rights and interests in land are divided between the State and private co-owners, the Department may begin injunction proceedings to enforce compliance in accordance with the provisions of this chapter.

   1966, No. 67 (Sp. Sess.), § 3, eff. March 14, 1966; amended 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1987, No. 76 , § 18.

§ 423. Improvement of land.

To further carry out the purposes set forth in section 421 of this title, the departments listed in subsection 422(a) of this title may improve lands held for those purposes with publicly owned and controlled rest and recreation areas which may include, among other things, sanitary facilities, and other facilities reasonably necessary to accommodate the traveling public.

1966, No. 67 (Sp. Sess.), § 4, eff. March 14, 1966.

Cross References

Cross references. Restrictions on smoking in public places, see 18 V.S.A. § 1741 et seq.

§ 424. Planning provisions.

The Vermont Planning Council shall carry on a continuing comprehensive planning process to inventory and classify scenic corridors, areas, and sites, and analyze the scenic values and various elements thereof in keeping with the purposes of section 421 of this title, including the general location of areas of special need and specific proposals for such new areas. The Vermont Planning Council shall prepare and submit to the Governor for adoption, and from time to time, revise, a comprehensive plan for the protection of the State's scenic resources. This plan shall become a part of the State's comprehensive master plan.

The Vermont Planning Council shall cooperate with federal and local governments, and with interested private groups and individuals in joint planning to protect and to develop historic, cultural, and scenic resources.

Added 1966, No. 67 (Sp. Sess.), § 3, eff. March 14, 1966; amended 1967, No. 167 , § 6, eff. April 15, 1967.

§ 425. Repealed. 2015, No. 40, § 28.

§ 441. Statement of purpose.

1. In order to provide access to the use and enjoyment of the outdoor areas of Vermont, to conserve and use the natural resources of this State for healthful and recreational purposes, and to provide transportation from one place to another, it is declared to be the policy of this State to provide the means for maintaining and improving a network of trails to be known as the "Vermont trails system."
2. It is the intent of the Legislature that trails be established within and without boundaries of State parks and forests and, when feasible, to interconnect units of the State park and forest system, as well as such federal and municipal lands as may be appropriate.
3. The development, operation, and maintenance of the Vermont trails system is declared to be a public purpose and in this context, the Agency of Natural Resources together with other governmental agencies is authorized to spend public funds for such purposes and to accept gifts and grants of funds, property, or property rights from public or private sources to be used for such purposes where permission is granted.
4. It is the intent of the Legislature to maintain Vermont's eligibility for receiving and spending federal funds for trails.
5. It is the intent of the Legislature that whenever a railroad line not already owned by the State of Vermont is proposed for abandonment, and continuation of railroad service is not economically feasible under present conditions, the right-of-way may be acquired by the State of Vermont for railbanking and interim trail use under 5 V.S.A. chapter 58.

   Added 1993, No. 211 (Adj. Sess.), § 28.

§ 442. Definitions.

As used in this chapter:

1. "Agency" means the Agency of Natural Resources.
2. "Nonhighway recreational fuel taxes" means State taxes on fuel used in vehicles on recreational trails or back country terrain.
3. "Trails" means land used for hiking, walking, bicycling, cross-country skiing, snowmobiling, all-terrain vehicle riding, horseback riding, and other similar activities. Trails may be used for recreation, transportation, and other compatible purposes.
4. "Trails and Greenways Council" means the Vermont Trails and Greenways Council, Inc. as incorporated with the Secretary of State's office.

   Added 1993, No. 211 (Adj. Sess.), § 28.

§ 443. Vermont trails system.

The Vermont trails system shall consist of those individual trails recognized by the Agency of Natural Resources with the advice of the Greenways Council. The Agency, with the advice of the Council, shall establish criteria for recognition of single use and shared use trails.

Added 1993, No. 211 (Adj. Sess.), § 28.

§ 444. Responsibilities of the Agency of Natural Resources.

The Agency of Natural Resources may:

1. Acquire by permission, the use of any section of land for the purpose of developing and maintaining the Vermont trails system. Permission shall be acquired from a willing land owner and shall be in writing and signed by both parties. The Agency or a person authorized by the Agency shall obtain landowner permission before establishing or allowing a trails group to establish a trail across private land. The written permission shall contain a clearly written statement expressing both parties' rights and obligations, including the obligation to maintain the trail, and the liability for property damage or personal injury, or both, to persons using trails created pursuant to this chapter. A dedication or any adverse right shall not arise from the granting of permission, under any circumstances.
2. Acquire by gift, or purchase, the fee simple absolute title or any lesser interest in land, including easements, for the purposes of developing and maintaining the Vermont trails system. The Agency shall hold harmless from any liability for personal injury or property damage sustained on a trail, subject to the provisions of section 448 of this chapter, any private landowner from whom an interest has been granted or conveyed under this subdivision.
3. Assign responsibilities for any trail, path, easement, or right-of-way to another governmental entity or not-for-profit agency upon agreement by such entity or agency to maintain and manage it for purposes consistent with this chapter.
4. Coordinate the activities of all governmental units and bodies that desire to participate in the development of the Vermont trails system.
5. Publish, sell, and distribute information and maps related to the development and maintenance of recreational trails.
6. Develop and oversee the implementation of a Vermont trails plan. The plan may include guidance on expenditure of funds, standards, provision for uniform signing, user and landowner educational programs.
7. Provide for public involvement in the development and management of the Vermont trails system.

   Added 1993, No. 211 (Adj. Sess.), § 28.

§ 445. Advisory council designated.

1. The Vermont Trails and Greenways Council, Inc., an organization of trail using and trail providing groups, is designated as an advisory council to the Agency of Natural Resources and shall advise on all matters related to this chapter, including the allocation of State and federal funds appropriated for the purposes of this chapter.
2. [Repealed.]

   Added 1993, No. 211 (Adj. Sess.), § 28; amended 2011, No. 153 (Adj. Sess.), § 29.

§ 446. Vermont Recreational Trails Fund.

The Recreational Trails Fund is established, which shall be subject to the provisions of 32 V.S.A. chapter 7, subchapter 5. There shall be an annual transfer from the Transportation Fund to the Recreational Trails Fund in the amount of $370,000.00. In each fiscal year, this amount shall be included in the budget estimates and statements submitted under 32 V.S.A. § 301 for purposes of determining appropriations by the General Assembly. Appropriations may be made from the Fund to design, construct, and maintain recreational trails, to conduct studies and prepare plans, publish maps and information, and to make grants to State and municipal agencies and nonprofit organizations. The Agency of Natural Resources shall administer the Fund and adopt rules for its use and all monies appropriated shall be used on State, federal, and municipal lands and on maintenance of trails on public as well as private lands where permission is granted, as follows:

1. 40 percent to the Department of Forests, Parks and Recreation;
2. 20 percent for providing grants to municipalities and nonprofit agencies;
3. 40 percent to the Vermont Association of Snow Travelers.

   Added 1993, No. 211 (Adj. Sess.), § 28; amended 1995, No. 63 , § 212a, eff. May 4, 1995; 2015, No. 68 (Adj. Sess.), § 70, eff. March 8, 2016.

§ 447. Coordination with the Agency of Transportation.

1. The Agency of Natural Resources shall coordinate the development of trails and the Agency of Transportation shall coordinate the development of bicycle and pedestrian paths.
2. The Agency of Transportation shall endeavor to purchase railroads over which rail service has been discontinued that then may be retained for transportation use or leased to the Agency of Natural Resources for management as trails.

   Added 1993, No. 211 (Adj. Sess.), § 28.

§ 448. Landowner liability.

No public or private owner of land that is a part of the Vermont trails system shall be liable for any property damage or personal injury sustained by any person using these trails unless the public or private owner intentionally inflicts the damage or injury.

Added 1993, No. 211 (Adj. Sess.), § 28.

§ 449. Relation to other laws.

The provisions of this chapter shall not be construed to limit the powers of any governmental body under any other law or municipal charter.

Added 1993, No. 211 (Adj. Sess.), § 28.

§ 481. Definitions.

As used in this chapter, the following terms are defined as follows:

1. "Limited access facility" shall have the same meaning as defined in 19 V.S.A. § 1702 .
2. "Official business directional sign" means a sign erected and maintained by the State to indicate to the travelling public the route and the distance to public accommodations, commercial services for the travelling public, and points of scenic, historic, cultural, educational, and religious interest.
3. "On-premises sign" means an accessory sign that directs attention to a business, profession, commodity, service, or entertainment carried on, sold, or offered on the same premises.
4. "Outdoor advertising" means a sign that advertises, calls attention, or directs a person to a business, association, profession, commodity, product, institution, service, entertainment, person, place, thing, or activity of any kind whatsoever, and is visible from a highway or other public right-of-way.
5. "Residential directional sign" means an off-premises sign erected and maintained by an individual to indicate the location of his or her residence.
6. A "sign" is any structure, display, device, or representation, either temporary or permanent, portable or ground-mounted, that is designed or used to advertise or call attention to any thing, person, business, activity, or place and is visible from any highway or other right-of-way. It does not include the flag, pennant, or insignia of any nation, state, or town. Whenever dimensions of a sign are specified, they shall include panels and frames.
7. "Sign plaza" means any area established and maintained by the Agency of Transportation adjacent to a highway, where official information plaza plaques are grouped in tiers or on panels.
8. "Traffic control sign or device" means an official route marker, guide sign, warning sign, or sign directing traffic to or from a bridge, ferry, or airport, or sign regulating traffic, that has been erected by officers having jurisdiction over the highway.
9. "Official information plaza plaque" means a plaque erected and maintained by the State to indicate to the travelling public: public accommodations, commercial services for the travelling public, and points of scenic, historic, cultural, educational, and religious interest, installed at an information plaza.
10. "Full-sized official business directional sign" means a sign not exceeding 1,200 square inches.  "Half-sized official business directional sign" means a sign not exceeding 300 square inches.
11. "Owner" means the person or persons who own a sign. Wherever it is required under this chapter to provide notice to the actual owner or owners of a sign but is impractical to do so, it shall be conclusively presumed that the person, firm, or corporation advertised on the sign is the agent of the actual owner or owners. Notice served on any such agent shall have the same effect as notice provided the actual owner or owners.
12. "Travel information" means the various communication media and methods available to collect and distribute information to the traveling public.

    Added 1967, No. 333 (Adj. Sess.), § 1, eff. March 23, 1968; amended 1969, No. 92 , § 1, eff. April 19, 1969; 1983, No. 167 (Adj. Sess.), §§ 1, 2; 1993, No. 121 (Adj. Sess.), §§ 1, 2.

§ 482. Legislative findings.

The General Assembly of the State of Vermont makes the following findings of fact:

1. A large and increasing number of tourists has been coming to Vermont, and as a result the tourist industry is one of the largest sources of income for Vermonters, with an increasing number of persons directly or indirectly dependent upon the tourist industry for their livelihood.
2. Very few convenient facilities and coordinated means exist in the State to provide information on available public accommodations, commercial services for the traveling public and other lawful businesses, and points of scenic, historic, cultural, educational, and religious interest. Provision of those facilities can be a major factor in encouraging the development of the tourist industry in Vermont.
3. Scenic resources of great value are distributed throughout the State, and have contributed greatly to its economic development, by attracting tourists, permanent and part-time residents, and new industries and cultural facilities.
4. The scattering of outdoor advertising throughout the State is detrimental to the preservation of those scenic resources, and so to the economic base of the State, and is also not an effective method of providing information to tourists about available facilities.
5. The proliferation of outdoor advertising is hazardous to highway users.

   Added 1967, No. 333 (Adj. Sess.), § 2; amended 1993, No. 121 (Adj. Sess.), § 3.

§ 483. Purposes and policy.

In order to promote the public health, safety, and other aspects of the general welfare, it is in the public interest to provide information about and help guide travelers to public accommodations and services, other businesses, and points of scenic, historic, cultural, educational, and religious interest. To provide that information, it is the policy of the State and the purpose of this chapter:

1. To establish means by which the traveling public may receive general and specific travel information in a timely manner utilizing current marketing and technological systems.
2. To provide for the effective collection and distribution of travel information.
3. To prohibit the indiscriminate use of other outdoor advertising.

   Added 1967, No. 333 (Adj. Sess.), § 3; amended 1993, No. 121 (Adj. Sess.), § 4.

§ 484. Travel Information Council; creation, membership, terms.

1. The Travel Information Council is created to administer the provisions of this chapter.
   1. The Agency of Transportation shall be responsible for the administration and maintenance of the official business directional sign program, information plazas, and other tourist information facilities deemed appropriate by the Council.
   2. The Agency of Commerce and Community Development shall be responsible for the collection and distribution of travel information, as deemed appropriate by the Council.
2. 1. The Council may adopt rules consistent with this chapter relating to the determination of locations for official business directional signs and to all other matters necessary and appropriate to the administration of this chapter. In adopting those rules it shall give consideration to the adequacy of information provided by highway directional signs and the preservation of scenic and aesthetic values and shall consult with the Agency of Transportation as to matters of highway safety. (b) (1)  The Council may adopt rules consistent with this chapter relating to the determination of locations for official business directional signs and to all other matters necessary and appropriate to the administration of this chapter. In adopting those rules it shall give consideration to the adequacy of information provided by highway directional signs and the preservation of scenic and aesthetic values and shall consult with the Agency of Transportation as to matters of highway safety.
   2. It shall determine whether official business directional signs at a particular location shall be displayed in tiers or upon panels.
   3. It shall advise the Agency of Commerce and Community Development on policies and matters pertaining to collection and distribution of tourist information.
3. 1. The Council shall have seven members, comprising the Secretary of Commerce and Community Development or designee, who shall chair the Council, and six appointed members as follows: one representing the lodging industry, one the restaurant industry, one the recreation industry, one the Agency of Transportation, one the general public, and one agriculture. (c) (1)  The Council shall have seven members, comprising the Secretary of Commerce and Community Development or designee, who shall chair the Council, and six appointed members as follows: one representing the lodging industry, one the restaurant industry, one the recreation industry, one the Agency of Transportation, one the general public, and one agriculture.
   2. The six appointed members shall be appointed by the Governor with the advice and consent of the Senate in two-year staggered terms so that three members are appointed annually. The members are eligible for reappointment.
   3. Members of the Council shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A. § 1010 , which shall be paid by the Agency of Transportation.
4. 1. The Council shall designate, in each State transportation district, a person to represent business, a person to represent the public, and a person to represent the district planning or development agencies as a committee to act for it in those districts in considering applications for signs and the location thereof. (d) (1)  The Council shall designate, in each State transportation district, a person to represent business, a person to represent the public, and a person to represent the district planning or development agencies as a committee to act for it in those districts in considering applications for signs and the location thereof.
   2. The members of the committee shall serve at the pleasure of the Council, and a majority of a committee shall constitute a quorum for the conduct of any business.
   3. A person aggrieved by a decision of a committee may ask for and shall be granted a hearing before the Council and may appeal on questions of law to the Superior Court under V.R.C.P. 74 from a decision of the Council.

      Added 1967, No. 333 (Adj. Sess.), § 4, eff. March 23, 1968; amended 1969, No. 92 , § 2, eff. April 19, 1969; 1971, No. 115 , § 1, eff. April 26, 1971; 1983, No. 167 (Adj. Sess.), § 3; 1993, No. 121 (Adj. Sess.), § 5; 1995, No. 190 (Adj. Sess.), § 1(a), (b); 2019, No. 61 , § 5.

§ 485. Official tourist information centers.

The Agency of Commerce and Community Development shall establish official tourist information centers, near the principal entrance points into the State, as determined by the Agency, and at such other locations as the Agency deems appropriate, in order to provide information about public accommodations, commercial services for the travelling public, other businesses, and points of scenic, historic, cultural, educational, and religious interest.

Added 1967, No. 333 (Adj. Sess.), § 5, eff. March 23, 1968; amended 1969, No. 92 , § 3, eff. April 19, 1969; 1983, No. 167 (Adj. Sess.), § 4; 1995, No. 190 (Adj. Sess.), § 1(a).

§ 485a. Connecticut River valley tourism district.

There is created the Connecticut River valley tourism district consisting of all towns bordering on the Connecticut River.

Added 1999, No. 152 (Adj. Sess.), § 215a, eff. May 29, 2000.

§ 486. Official directional signs.

1. The Agency of Transportation, under the direction of the Travel Information Council, shall furnish, erect, and maintain official business directional signs licensed under this chapter at locations specified in the license.  The Agency of Transportation may contract for the satisfaction of all or any portion of its duties under this subsection.  That furnishing, erection, and maintenance are declared to be for highway purposes under Title 19 and any amendments thereto.
2. The Agency of Transportation shall furnish, erect, and maintain certain official directional signs at interstate highway exits wherever the exit is five miles or less from the nearest State Police office or barracks.  These exit signs shall bear the words "State Police," with an indication of the distance to the State Police office or barracks.
3. The Travel Information Council may enter into such contractual or other arrangements as it may consider appropriate under all the circumstances with any town or city of this State, providing for the erection and maintenance of official business directional signs and the fees charged therefor, within that town or city, which may be distinctive to that town or city, or providing for the administration of such official business directional signs, or for any other matter arising under this chapter which the Council considers appropriate to be administered by that town or city; provided, however, that any such arrangement or agreement, and all actions taken thereto, shall comply with this chapter and with the regulations adopted hereto.

   Added 1967, No. 333 (Adj. Sess.), § 6, eff. March 23, 1968; amended 1969, No. 92 , § 4, eff. April 19, 1969; 1975, No. 60 ; 1983, No. 167 (Adj. Sess.), § 5.

§ 487. Other information.

The Agency of Commerce and Community Development shall provide travel information regarding the location of available public accommodations, commercial services for the traveling public and other businesses, and points of scenic, historic, and cultural interest. It may include in guidebooks and other published materials, paid advertising, identified as such. This information shall be made available to the general public at places the Agency may find desirable, such as interstate rest areas, information plazas, information centers and booths, service stations and garages, hotels, motels, and restaurants, historical attractions, and education facilities, using the most appropriate methods and means, such as publications, audio/visual, computer, and telephone.

Added 1967, No. 333 (Adj. Sess.), § 7, eff. March 23, 1968; amended 1969, No. 92 , § 5, eff. April 19, 1969; 1983, No. 167 (Adj. Sess.), § 6; 1993, No. 121 (Adj. Sess.), § 6; 1995, No. 190 (Adj. Sess.), § 1(a).

§ 488. Prohibition of other outdoor advertising.

No person may erect or maintain outdoor advertising visible to the travelling public except as provided in this chapter.

Added 1967, No. 333 (Adj. Sess.), § 8, eff. March 23, 1968.

§ 489. Eligibility for official business directional signs.

1. Lawful businesses and points of interest and cultural, educational, and religious facilities are eligible for official business directional signs, subject to the provisions of this chapter and to rules and regulations promulgated by the Travel Information Council, and subject further to any federal law, rule, or regulation affecting the allocation of federal highway funds or other funds to or for the benefit of this State or any agency or subdivision thereof of the State.
2. Notwithstanding any provision of this chapter, brown-and-white official business directional signs as requested by the local byways organization may be allowed for the purpose of directing travelers to interpretive information sites along officially designated State and federal byways only. An official business directional sign authorized under this subsection shall be located on the same State-designated byway as the interpretive information site to which the sign directs attention.

   Added 1967, No. 333 (Adj. Sess.), § 9, eff. March 23, 1968; amended 1969, No. 92 , § 6, eff. April 19, 1969; 2007, No. 75 , § 25.

§ 490. Types and arrangement of signs.

1. The Travel Information Council shall regulate the size, shape, color, lighting, manner of display, and lettering of official business directional signs. Distinctive symbols shall be established to the extent considered practicable by the Council for each type of service or facility, different from those for other types; and appropriate signs shall be provided for each eligible applicant within a given category. When appropriate because of the number of signs at one location, the signs shall be replaced or substituted with an information plaza on which applicants may purchase advertising plaques.
2. Subject to traffic safety regulations specifically adopted by the Agency of Transportation for the purposes of this chapter, locations of official business directional signs shall conform to the following:
   1. Official business directional signs shall be located in the same town as the applicant business unless one or more of the following conditions are present:
      1. The location of the sign must be in a town other than that of the applicant business in order to satisfy the traffic safety regulations. In such case, the sign shall be located as close to the turnoff for the business as possible;
      2. The business is located on an unnumbered highway, the turnoff from the numbered highway is in another town and this turnoff is the only access point for the business from the nearest numbered highway;
      3. The absence of highway destination signs directing travelers to the town in which the business is located; and
      4. The absence of an official business directional sign creates a safety hazard for the traveling public.
   2. Official business directional signs shall be located in those vicinities where the traveler must change direction from one highway to another highway to reach the business or point of interest, provided the sign is not on the same highway as the business or its on-premises sign unless the sign is needed to alleviate a safety hazard or to eliminate an unsafe situation as described in this section; and provided a travel information directional sign is not located at that point and travel to that information source will cause neither undue inconvenience to the traveler nor traffic congestion. Signs may be approved on the same highway as the business, or its legal on-premises signing only when, in the opinion of the Travel Information Council or its district committees, the traveling public is placed in an unsafe situation without one or more official business directional signs. For the purposes of this chapter, an unsafe situation shall exist when there is insufficient visibility of a business' on-premises signing that cannot be improved by the applicant business. Adequate visibility shall be determined by the Travel Information Council in consultation with the Agency of Transportation.
3. When the signs at one location are too numerous, or when highway safety requires for other reasons, as determined by the Travel Information Council, the signs may be removed and the applicant business given the option to purchase advertising plaques on information plazas, located and designed so that drivers of motor vehicles may leave the main traffic lanes and inspect them. Information plazas may contain maps and other information, depending on space availability, and may have telephone and other information facilities attached to them. Sign plazas shall include the international symbol to indicate that gasoline service is available to people with disabilities. The Agency of Commerce and Community Development shall be responsible for the costs of installing new information plazas and for the installation of advertising plaques on State-owned information plazas, provided that the Secretary of Commerce and Community Development or designee gives prior approval for such costs and installation. If it is not practical to install information plazas or individual official business directional signs at any given location, because of the number of signs or because of traffic conditions, the Travel Information Council may in its discretion adopt some alternative method for providing information conveniently for travelers, including directions to zones or other geographic areas, and locally operated information booths and offices or multi-facility official business directional signs, or both.
4. If an official business directional sign cannot be sited in conformity with the traffic safety rules adopted by the Agency of Transportation, a person who believes that he or she is eligible under section 489 of this title for such a sign may request the Secretary of Transportation to grant a variance from the rules, setting forth in the request the physical circumstances or conditions that make it impossible to locate an official business directional sign in strict conformity with the traffic safety rules. The request shall show that variance, if authorized, will not be detrimental to the public welfare or safety and will represent the minimum variance that will afford relief and will represent the least deviation possible from the traffic safety rules. The Secretary's denial of a variance request under this subsection may be appealed to the Transportation Board within 30 days of the denial. The Board's determination of such an appeal shall be final.

   Added 1995, No. 46 , § 41; amended 1995, No. 190 (Adj. Sess.), § 1(a), (b); 2013, No. 96 (Adj. Sess.), § 33.

§ 490a. Redesignated.

§ 491. Number of signs.

Notwithstanding the provisions of section 499 of this title, the Council shall not issue more than four licenses for official business directional signs for any one place of business eligible therefor under section 490 of this title, not more than one of which is visible to traffic moving in any one direction on any one highway leading to the place, unless the Travel Information Council finds that enforcement of this subsection will be unreasonable and will result in unnecessary hardship to the applicant.

Added 1967, No. 333 (Adj. Sess.), § 11, eff. March 23, 1968; amended 1969, No. 92 , § 8, eff. April 19, 1969.

§ 492. Permitted locations.

In adopting rules relating to locations for official business directional signs, the Council shall take into consideration such factors as the effect upon highway safety, the convenience of the travelling public, and the preservation of scenic beauty.

Added 1967, No. 333 (Adj. Sess.), § 12, eff. March 23, 1968; amended 1969, No. 92 , § 9, eff. April 19, 1969.

§ 493. On-premises signs.

Owners or occupants of real property may erect and maintain on the property, on-premises signs advertising the sale or lease of the property or activities being conducted on the property. Those signs shall be subject to the regulations set forth below.

1. On-premises signs may be erected or maintained, with a total area of not more than 150 square feet, advertising activities being conducted on the same premises. However, this limitation does not apply to signs existing on May 1, 1971, or attached to or part of the building in which the activities are being carried on. An on-premises sign shall not be located more than 1,500 feet from a main entrance from the highway to the activity or premises advertised. The 1,500-foot distance shall be measured along the centerline of the highway or highways between the sign and a main entrance. A main entrance shall be a principal, private roadway or driveway that leads from a public highway to the advertised activity. For the purposes of this subdivision, premises shall not include land that is separated from the activity by a public highway, or other intervening land use not related to the advertised activity. Undeveloped land or farmland shall not be considered as an intervening land use.
2. A sign advertising the sale or lease of real estate by the owner or an agent shall not have an area of more than six square feet, including the panel and the frame. Signs attached to "for sale" or "for lease" signs that state "sold," "sale pending," "sale under contract" or similar messages shall not be permitted.
3. A permitted on-premises sign shall not extend more than 25 feet above the ground level or, if the sign is attached to or is part of a building, ten feet above the roof of the building. However, this limitation does not apply to signs existing on November 1, 1967.

   Added 1967, No. 333 (Adj. Sess.), § 13, eff. March 23, 1968; amended 1969, No. 92 , § 10, eff. April 19, 1969; 1971, No. 115 , § 2, eff. April 26, 1971; 1983, No. 167 (Adj. Sess.), § 8; 1993, No. 121 (Adj. Sess.), § 8.

§ 494. Exempt signs.

The following signs are exempt from the requirements of this chapter except as indicated in section 495 of this title:

1. Signs located on or in the rolling stock of common carriers.
2. Signs on registered and inspected motor vehicles except those that are determined by the Travel Information Council to be circumventing the intent of this chapter.
3. Signs, with an area of not more than 260 square inches, identifying stops or fare zone limits of common carriers by motor bus.
4. Signs erected and maintained by or with the approval of a town outside the highway right-of-way, each of which does not exceed 64 square feet in area, excluding panel and frame, which may show the place and time of services or meetings of churches and civic organizations in the town, and which may include a panel which identifies the name of the town, the charter date, the date the town was founded, or any other significant date in the history of the town, and which the town wishes to identify. The panel may bear the wording "welcome to" the particular town. Not more than two such signs may be erected and maintained readable by traffic proceeding in any one direction on any one highway. The signs shall meet the criteria of the Agency of Transportation and the Travel Information Council. A sign that otherwise meets the requirements of this subdivision may refer to a census-designated place within a town rather than the town itself. As used in this subdivision, "census-designated place" means a statistical entity consisting of a settled concentration of population that is identifiable by name, is not legally incorporated under the laws of the State, and is delineated as such a place by the U.S. Census Bureau according to its guidelines.
5. Residential directional signs, each of which does not exceed four square feet in area, along highways other than limited-access facilities (but not within the highway right-of-way), except that a license is required if the person maintains a professional, commercial, or business activity at this residence and wishes to indicate its existence.
6. 1. Official traffic control signs, including signs on limited access highways, consistent with the Manual on Uniform Traffic Control Devices (MUTCD) adopted under 23 V.S.A. § 1025 , directing persons to: (6) (A) Official traffic control signs, including signs on limited access highways, consistent with the Manual on Uniform Traffic Control Devices (MUTCD) adopted under 23 V.S.A. § 1025 , directing persons to:
      1. other towns;
      2. international airports;
      3. postsecondary educational institutions;
      4. cultural and recreational destination areas;
      5. nonprofit diploma-granting educational institutions for persons with disabilities; and
      6. official State visitor information centers.
   2. After having considered the six priority categories in subdivision (A) of this subdivision (6), the Travel Information Council may approve installation of a sign for any of the following provided the location is open a minimum of 120 days each year and is located within 15 miles of an interstate highway exit:
      1. nonprofit museums;
      2. cultural and recreational attractions owned by the State or federal government;
      3. officially designated scenic byways;
      4. park and ride or multimodal centers; and
      5. fairgrounds or exposition sites.
   3. The Agency of Transportation may approve and erect signs, including signs on limited access highways, consistent with the MUTCD, directing persons to State-owned airports and intercity passenger rail stations located within 25 miles of a limited access highway exit.

      Notwithstanding the limitations of this subdivision (6), supplemental guide signs consistent with the MUTCD for the President Calvin Coolidge State Historic Site may be installed at the following highway interchanges:

      Interstate 91, Exit 9 (Windsor); and

      Interstate 89, Exit 1 (Quechee).

      Signs erected under this subdivision (6) shall not exceed a maximum allowable size of 80 square feet.

7. Signs of a duly constituted governmental body, including traffic and similar regulatory devices, legal notices, or warnings at railroad crossings.
8. Small signs displayed for the direction, instruction, or convenience of the public, including signs which identify rest rooms, freight entrances, posted areas or the like, with a total surface area not exceeding four square feet.
9. Signs to be maintained for not more than two weeks announcing an auction, or a campaign, drive, or event of a civic, philanthropic, or religious organization.
10. Memorial signs or tablets.
11. Signs erected by county fairs and expositions for a period not to exceed six weeks.
12. Directional signs, subject to regulations adopted by the Federal Highway Administration, with a total surface area not to exceed six square feet providing directions to places of business offering for sale agricultural products harvested or produced on the premises where the sale is taking place, or to farmers' markets that are members of the Vermont Farmers' Market Association selling Vermont agricultural products.
13. Murals that relate exclusively to a downtown designated under 24 V.S.A. chapter 76A, whether located within or outside the designated downtown itself, provided that all of the following apply: the mural is hand-painted; it is painted directly on the outside surface of a structure that has been in existence on the site for at least the preceding 25 years; it is located no more than three miles from the designated downtown; its placement has been authorized by the legislative body of the municipality in which it is located; and any words used pertain only to the direction or distance to, and the name of, the designated downtown. A mural exempted under this subdivision that is visible from the off-ramp of a limited access facility and not otherwise visible from such a facility shall also be exempt from compliance with subsection 495(b) of this title.
14. Up to two directional signs with a surface area not to exceed one square foot per sign, erected by a town on any existing highway signpost on highways over which the town has jurisdiction, except class 1 town highways. The colors of the directional signs shall be in contrast to the colors used on highway signs. Directional signs on the same highway signpost shall be for different purposes. The erection of signs shall be under guidelines adopted by the town. Towns may charge a reasonable fee for the installation of approved signs.
15. Municipal informational and guidance signs. A municipality may provide alternative signs of a guidance or informational nature and creative design to assist persons in reaching destinations that are transportation centers, geographic districts, historic monuments, and significant or unique educational, recreational, or cultural landmarks, including farmers' markets that are members of the Vermont Farmers' Market Association selling Vermont agricultural products, provided that such destinations are not private, for-profit enterprises. A proposal to provide alternative signs shall contain color, shape, and sign placement requirements that shall be of a uniform nature within the municipality. The surface area of alternative signs shall not exceed 12 square feet, and the height of such signs shall not exceed 12 feet in height. The proposal shall be approved by the municipal planning commission for submission to and adoption by the local legislative body. Alternative signs shall be responsive to the particular needs of the municipality and to the values expressed in this chapter. These proposals shall be subject to and consistent with any plan duly adopted pursuant to 24 V.S.A. chapter 117, shall be enforced under the provisions of 24 V.S.A. §§ 4444 and 4445 and may emphasize each municipality's special characteristics. No fees shall be assessed against a municipality that provides signs under this section and, upon issuance of permits under 19 V.S.A. § 1111 , such signs may be placed in any public right-of-way other than interstates. This section shall take effect upon the Travel Information Council securing permission for alternative municipal signs in accordance with 23 V.S.A. § 1029 .
16. Signs displaying a message of congratulations, condolences, birthday wishes, or displaying a message commemorating a personal milestone or event; provided, however, any such message is maintained for not more than two weeks.
17. Within a downtown district designated under the provisions of 24 V.S.A. chapter 76A, municipal information and guidance signs. A municipality may erect alternative signs to provide guidance or information to assist persons in reaching destinations that are transportation centers, geographic districts, and significant or unique educational, recreational, historic, or cultural landmarks, including farmers' markets that are members of the Vermont Farmers' Market Association selling Vermont agricultural products. A proposal to provide alternative signs shall contain color, shape, and sign placement requirements that shall be uniform within the municipality. The surface area of alternative signs shall not exceed 12 square feet, and the highest point of such signs shall not exceed 12 feet above the ground, road surface, or sidewalk. The proposal shall be approved by the municipal planning commission for submission to and adoption by the local legislative body. The sign proposal then shall be submitted to the Travel Information Council for final approval. Denial may be based only on safety considerations. Reasons for denial shall be stated in writing. Alternative signs shall be responsive to the particular needs of the municipality and to the values expressed in this chapter. These proposals shall be subject to and consistent with any municipal plan duly adopted pursuant to 24 V.S.A. chapter 117, shall be enforced under the provisions of 24 V.S.A. §§ 4444 and 4445, and may emphasize each municipality's special characteristics. No fees shall be assessed against a municipality that provides signs under this section and upon issuance of permits under 19 V.S.A. § 1111 , such signs may be placed in any public right-of-way other than an interstate highway. Notwithstanding subdivision 495(a)(7) or any other provision of this title or of 23 V.S.A. § 1029 , alternative signs permitted under this subsection shall not be required to comply with any nationally recognized standard.
18. 1. A sign that is a banner erected over a highway right-of-way for not more than 21 days if the bottom of the banner is not less than 16 feet 6 inches above the surface of the highway and is securely fastened with breakaway fasteners and the proposed banner has been authorized by the legislative body of the municipality in which it is located. (18) (A) A sign that is a banner erected over a highway right-of-way for not more than 21 days if the bottom of the banner is not less than 16 feet 6 inches above the surface of the highway and is securely fastened with breakaway fasteners and the proposed banner has been authorized by the legislative body of the municipality in which it is located.
    2. As used in this subdivision (18), "banner" means a sign that is constructed of soft cloth or fabric or flexible material such as vinyl or plastic cardboard.

       Added 1967, No. 333 (Adj. Sess.), § 14, eff. March 23, 1968; amended 1971, No. 115 , § 3, eff. April 26, 1971; 1979, No. 135 (Adj. Sess.), § 2; 1983, No. 167 (Adj. Sess.), § 9; 1991, No. 197 (Adj. Sess.), § 1; 1991, No. 207 (Adj. Sess.), §§ 1, 2; 1991, No. 220 (Adj. Sess.), § 1; 1993, No. 121 (Adj. Sess.), § 8a; 1995, No. 190 (Adj. Sess.), § 12b; 1997, No. 120 (Adj. Sess.), § 8; 1997, No. 150 (Adj. Sess.), § 6; 1999, No. 18 , §§ 41e, 41g(c), eff. May 13, 1999; 1999, No. 156 (Adj. Sess.), § 33, eff. May 29, 2000; 2003, No. 160 (Adj. Sess.), § 59, eff. June 9, 2004; 2007, No. 164 (Adj. Sess.), § 55; 2009, No. 51 , § 4; 2011, No. 62 , § 29, eff. June 1, 2011; 2015, No. 158 (Adj. Sess.), § 53; 2017, No. 158 (Adj. Sess.), § 17; 2019, No. 50 , § 1; 2021, No. 55 , § 35.

§ 495. Other regulations applying to permitted signs.

1. No official business directional sign, on-premises sign, residential directional sign, or exempt sign may be erected or maintained, along a highway and visible from the highway, that:
   1. Interferes with, imitates or resembles any official traffic control sign, signal or device, or attempts or appears to attempt to direct the movement of traffic.
   2. Prevents the driver of a motor vehicle from having a clear and unobstructed view of official traffic control signs and approaching or merging traffic.
   3. Contains, includes, or is illuminated by any flashing intermittent or moving lights, or moves or has any animated or moving parts, except that this restriction shall not apply to a traffic control sign, barber poles, theatre marquees that are determined by the Travel Information Council to contribute to the historic significance of a building listed, or eligible for listing, in the national register of historic places and that are operated in accordance with any conditions prescribed by the travel information council, or signs of a public service nature as determined by the Travel Information Council.
   4. Has any lighting, unless such lighting is so effectively shielded as to prevent beams or rays of light from being directed at any portion of the main travelled way of a highway, or is of such low intensity or brilliance as not to cause glare or to impair the vision of the driver of any motor vehicle or otherwise to interfere with the operation thereof.
   5. Is located upon a tree, or painted or drawn upon a rock or other natural feature, except that this restriction shall not apply to residential directional signs.
   6. Advertises or calls attention to a business or other activity, or a profession, commodity, product, service, or entertainment not carried on, produced, sold, or offered in this State, or to an activity of any kind which has already occurred or has otherwise terminated.
   7. Is in violation of or at variance with any federal law or regulation, including one containing or providing for conditions to or affecting the allocation of federal highway or other funds to or for the benefit of this State or any subdivision thereof.
2. No on-premises or exempt sign may be erected if it is so located as to be readable primarily from a limited access facility.
3. No on-premises sign, residential directional, or exempt sign may be erected or maintained that:
   1. Advertises activities that are illegal under any State or federal law applicable at the location of the sign or of the activities.
   2. Is not clean or in good repair.
   3. Is not securely affixed to a substantial structure.
   4. Is not consistent with the standards in this chapter or regulations of the Travel Information Council.
4. Notwithstanding any other provisions of this title, a person, firm, or corporation shall not erect or maintain any outdoor advertising structure, device, or display within the limits of the highway right-of-way; however, this limitation shall not apply to the signs and devices referred to in subdivisions 494(1), (2), (3), (6), (7), (10), (14), and (17) of this title.
5. Except on those highways maintained exclusively by the Agency of Transportation and on limited access facilities, the limitation established by subsection (d) of this section shall not apply to the signs and devices referred to in subdivisions 494(9) and (11) of this title.
6. Except on limited access facilities, the limitation established by subsection (d) of this section shall not apply to the signs referred to in subdivision 494(18) of this title.

   Added 1967, No. 333 (Adj. Sess.), § 15, eff. March 23, 1968; amended 1969, No. 92 , § 17, eff. April 19, 1969; 1977, No. 13 ; 1983, No. 167 (Adj. Sess.), §§ 10, 11; 1985, No. 97 , eff. May 30, 1985; 1991, No. 220 (Adj. Sess.), § 2; 1993, No. 121 (Adj. Sess.), § 9; 1997, No. 120 (Adj. Sess.), § 9; 1999, No. 18 , § 41h, eff. May 13, 1999; 2019, No. 50 , § 2.

§ 496. Repealed. 1993, No. 121 (Adj. Sess.), § 10.

§ 497. Removal of signs.

The owner of a sign that is not licensed under this chapter and that is not a legal on-premises or exempt sign meeting the requirements set forth in this chapter, other than a sign that was lawfully erected and maintained prior to March 23, 1968, shall be in violation of this chapter until it is removed. The Travel Information Council, or the Secretary of Transportation or designee pursuant to authority delegated by the Council, may, upon failure of the owner to remove such sign, order its removal by the Agency of Transportation, and the Agency of Transportation shall thereupon remove the sign without notice or further proceeding, at the expense of the owner. The expense may be recovered by the State in an action on this statute, that shall be instituted in the Superior Court in the unit for the area in which the sign is located. A copy of the notice of removal shall be sent by certified mail to the owner at the last known address. If an illegal sign is re-erected after the initial removal notice is executed, the Agency of Transportation shall have the authority to remove that illegal sign without additional prior notice to the owner. The Agency of Transportation or the legislative body of a municipality shall have the authority to remove or relocate, or both, without prior notice, any sign, device, or display that is temporary in nature and not affixed to a substantive structure that is erected within 24.75 feet of the actual centerline of any highway under its jurisdiction and within the public highway right-of-way.

Added 1967, No. 333 (Adj. Sess.), § 17, eff. March 23, 1968; amended 1969, No. 92 , § 12, eff. April 19, 1969; 1983, No. 167 (Adj. Sess.), § 13; 1993, No. 121 (Adj. Sess.), § 11; 2009, No. 154 (Adj. Sess.), § 61.

§ 498. Repealed. 1993, No. 121 (Adj. Sess.), § 12.

§ 499. Applications and licensing of official business directional signs.

1. Any person who believes that he or she is eligible under section 489 of this title for an official business directional sign may submit a written application on a form prescribed by the Travel Information Council. The application shall set forth the name and address of the applicant; the name, nature, and location of the business; the location where an official business directional sign is desired; and such other information as the Council may require. The applicant shall tender with the application the standard license fee stated in section 501 of this title for each sign requested.
2. Upon receipt of an application for an official business directional sign, the Travel Information Council shall refer the application to the appropriate district committee of the Travel Information Council with a report and the facts relative to the location. The committee shall approve or disapprove the application. The committee shall not approve an application unless the requested location conforms to the rules of the Agency of Transportation under section 490 of this title and of the Council and, in the case of town highways, of the town's selectboard, and the applicant is complying with all statutes and rules of the Departments of Health and Labor regarding places of public accommodation. If the application is approved, the Council shall issue the license and forward a copy to the division of the Agency of Transportation responsible for erection and maintenance of official highway signs. If it is not approved, the Travel Information Council shall return the application and fee, stating the reasons for refusal and giving the applicant opportunity to correct any defects or to be heard within 30 days by the Travel Information Council, and to present evidence, with or without counsel in his or her discretion. Upon written request, the Council shall hear the matter and notify the applicant of its findings and decision. The applicant may then appeal on questions of law to the Supreme Court.
3. The Travel Information Council shall establish a procedure and schedule for periodic on-site evaluation of licenses that have been granted, to determine whether such licenses have been issued in conformance with the rules of the Agency of Transportation and the Travel Information Council under section 490 of this title.
4. The Travel Information Council shall have the authority to deny renewal of those licenses that are found to violate the rules of the Agency of Transportation and the Travel Information Council. A licensee who is denied renewal shall have the right to appeal under subsection (b) of this section.

   Added 1967, No. 333 (Adj. Sess.), § 19, eff. March 23, 1968; amended 1969, No. 92 , § 13, eff. April 19, 1969; 1983, No. 167 (Adj. Sess.),§§ 14, 15; 1993, No. 172 (Adj. Sess.), § 12.

§ 500. Repealed. 1969, No. 92, § 18, eff. April 19, 1969.

§ 501. Fees.

Subject to the provisions of subsection 486(c) of this title, an applicant for an official business directional sign or an information plaza plaque shall pay to the Travel Information Council an initial license fee and an annual renewal fee as established by this section.

1. Initial license fees shall be as follows:
   1. for full-sized or half-sized business directional signs, $175.00 per sign;
   2. for information plaza plaques, $25.00 per plaque; however, if more than one plaque is requested by a business at the same time, a ten percent discount shall be given on the second and subsequent plaques.
2. Annual renewal fees shall be as follows:
   1. for full and half-sized official business directional signs, $100.00 per sign;
   2. information plaza plaques, $25.00 per plaque.

      Added 1967, No. 333 (Adj. Sess.), § 21, eff. March 23, 1968; amended 1969, No. 92 , § 14, eff. April 19, 1969; 1983, No. 168 (Adj. Sess.); 2009, No. 50 , § 61; 2009, No. 123 (Adj. Sess.), § 54.

§ 502. Repealed. 1993, No. 121 (Adj. Sess.), § 12.

§ 503. Penalty.

A person who violates this chapter shall be assessed a civil penalty of not more than $50.00. Each day the violation continues shall be a separate offense.

Added 1967, No. 333 (Adj. Sess.), § 23, eff. March 23, 1968; amended 1969, No. 92 , § 16, eff. April 19, 1969; 2019, No. 59 , § 48.

§ 504. Repealed. 1993, No. 121 (Adj. Sess.), § 12.

§ 505. Relation to other laws; local ordinances.

1. This chapter shall not supersede the provisions of any local ordinances whose requirements are more strict than those of this chapter, and not inconsistent therewith, whether those ordinances were enacted before or after the effective date of this chapter.
2. The provisions of this chapter with respect to sign control are not exclusive of any rights or remedies provided the Agency of Transportation and the legislative bodies of municipalities, in their respective jurisdictions, by Title 19, any other statute, municipal charter or ordinance, the doctrines of equity, or the common law.

   1967, No. 333 (Adj. Sess.), § 25; amended 1993, No. 121 (Adj. Sess.), § 13.

§ 506. Newspaper or other vending machines; delivery tubes.

1. Newspaper or other vending machines may be allowed within the highway right-of-way subject to the requirements of 19 V.S.A. § 1111 .
2. The copy permitted on newspaper delivery tubes shall be limited to identification markings that do not occupy a space of more than six square inches.

   Added 1993, No. 121 (Adj. Sess.), § 14.

§ 531. The Vermont Training Program.

1. Authority.
   1. The Secretary of Commerce and Community Development, in consultation with the State Workforce Development Board, shall have the authority to design and implement a Vermont Training Program, the purpose of which shall be to issue performance-based grants to employers and to education and training providers to increase employment opportunities in Vermont consistent with this chapter.
   2. The Secretary shall structure the Vermont Training Program to serve as a flexible, nimble, and strategic resource for Vermont businesses and workers across all sectors of the economy.
2. Eligibility for grant.  The Secretary of Commerce and Community Development may award a grant to an employer if:
   1. the training is for preemployment, new employees, or incumbent employees in the methods, either singularly or in combination, relating to preemployment training, on-the-job training, upgrade training, crossover training, or specialized instruction, either on-site or through a training provider;
   2. the employer provides its employees with at least three of the following:
      1. health care benefits with 50 percent or more of the premium paid by the employer;
      2. dental assistance;
      3. paid vacation;
      4. paid holidays;
      5. child care;
      6. other extraordinary employee benefits;
      7. retirement benefits;
      8. other paid time off, excluding paid sick days;
   3. the training is directly related to the employment responsibilities of the trainee; and
   4. compensation for each trainee at the completion of the training program equals or exceeds the livable wage as defined in 2 V.S.A. § 526 , provided that the Secretary shall have the authority to modify this requirement if he or she determines that the employer offers compensation or benefits, the value of which exceeds the compensation and benefit assumptions in the basic needs budget and livable wage calculated pursuant to 2 V.S.A. § 526 .
3. Disclosure.  In the case of a grant to a training provider, the Secretary shall require as a condition of the grant that the provider shall disclose to the Secretary the name of the employer and the number of employees trained prior to final payment for the training.
4. Conditions.  In order to avoid duplication of programs or services and to provide the greatest return on investment from training provided under this section, the Secretary of Commerce and Community Development shall:
   1. consult with the Commissioner of Labor regarding whether the grantee has accessed, or is eligible to access, other workforce education and training resources;
   2. disburse grant funds only for training hours that have been successfully completed by employees, provided that:
      1. a grant for on-the-job training shall either provide not more than 50 percent of wages for each employee in training or not more than 50 percent of trainer expense, but not both; and
      2. training shall be performed in accordance with a training plan that defines the subject of the training, the number of training hours, and how the effectiveness of the training will be evaluated; and
   3. use funds under this section only to supplement training efforts of employers and not to replace or supplant training efforts of employers.
5. Work-based learning activities.
   1. In addition to eligible training authorized in subsection (b) of this section, the Secretary of Commerce and Community Development may annually allocate up to 10 percent of the funding appropriated for the Program to fund work-based learning programs and activities with eligible employers to introduce Vermont students in a middle school, secondary school, career technical education program, or postsecondary school to manufacturers and other regionally significant employers.
   2. An employer with a defined work-based learning program or activity developed in partnership with a middle school, secondary school, career technical education program, or postsecondary school may apply to the Program for a grant to offset the costs the employer incurs for the work-based learning program or activity, including the costs of transportation, curriculum development, and materials.
6. Certificate.  Upon completion of the training program for any individual, the Secretary of Commerce and Community Development shall review the records and shall award to the trainee, if appropriate, a certificate of completion for the training.
7. -(j)  [Repealed.]

   (k) Report. Annually on or before January 15, the Secretary shall submit a report to the House Committee on Commerce and Economic Development and the Senate Committee on Economic Development, Housing and General Affairs. In addition to the reporting requirements under section 540 of this title, the report shall identify:

   1. all active and completed contracts and grants;
   2. from among the following, the category the training addressed:
      1. preemployment training or other training for a new employee to begin a newly created position with the employer;
      2. preemployment training or other training for a new employee to begin in an existing position with the employer;
      3. training for an incumbent employee who, upon completion of training, assumes a newly created position with the employer;
      4. training for an incumbent employee who, upon completion of training assumes a different position with the employer;
      5. training for an incumbent employee to upgrade skills;
   3. for the training identified in subdivision (2) of this subsection whether the training is on-site or classroom-based;
   4. the number of employees served;
   5. the average wage by employer;
   6. any waivers granted;
   7. the identity of the employer, or, if unknown at the time of the report, the category of employer;
   8. the identity of each training provider;
   9. whether training results in a wage increase for a trainee, and the amount of increase;
   10. the aggregated median wage for employees invoiced for training during the reporting period;
   11. the percentage growth in wages and the percentage growth in the median wage for all wage earners in the State during the reporting period; and
   12. the number, type, and description of grants for work-based learning programs and activities awarded pursuant to subsection (e) of this section.

       Added 1977, No. 214 (Adj. Sess.), § 1, eff. April 12, 1978; amended 1981, No. 211 (Adj. Sess.); 1985, No. 172 (Adj. Sess.), § 5; 1989, No. 66 ; 1991, No. 50 , § 230; 1993, No. 89 , § 3, eff. June 15, 1993; 1995, No. 46 , § 33; 1995, No. 190 (Adj. Sess.), § 1(b); 1997, No. 66 (Adj. Sess.), § 67a, eff. Feb. 20, 1998; 1997, No. 71 (Adj. Sess.), § 54; 1999, No. 147 (Adj. Sess.), § 4; 2003, No. 122 (Adj. Sess.), § 233a; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 174 (Adj. Sess.), § 16; 2007, No. 46 , § 3, eff. May 23, 2007; 2009, No. 78 (Adj. Sess.), § 14a, April 15, 2010; 2009, No. 146 (Adj. Sess.), § G13, eff. June 1, 2010; 2011, No. 52 , § 10, eff. May 27, 2011; 2013, No. 176 (Adj. Sess.), § 2; 2013, No. 199 (Adj. Sess.), § 42; 2015, No. 51 , § G.4, eff. Jan. 1, 2015; 2015, No. 157 (Adj. Sess.), § H.2, eff. Jan. 1, 2017; 2015, No. 157 (Adj. Sess.), §§ D.1, K.2; 2019, No. 14 , § 13, eff. April 30, 2019; 2019, No. 80 , § 2.

§ 540. Workforce education and training leader.

The Commissioner of Labor shall be the leader of workforce education and training in the State, and shall have the authority and responsibility for the coordination of workforce education and training within State government, including the following duties:

1. Perform the following duties in consultation with the State Workforce Development Board:
   1. advise the Governor on the establishment of an integrated system of workforce education and training for Vermont;
   2. create and maintain an inventory of all existing workforce education and training programs and activities in the State;
   3. use data to ensure that State workforce education and training activities are aligned with the needs of the available workforce, the current and future job opportunities in the State, and the specific credentials needed to achieve employment in those jobs;
   4. develop a State plan, as required by federal law, to ensure that workforce education and training programs and activities in the State serve Vermont citizens and businesses to the maximum extent possible;
   5. ensure coordination and nonduplication of workforce education and training activities;
   6. identify best practices and gaps in the delivery of workforce education and training programs;
   7. design and implement criteria and performance measures for workforce education and training activities;
   8. establish goals for the integrated workforce education and training system; and
   9. with the assistance of the Secretaries of Commerce and Community Development, of Human Services, of Education, of Agriculture, Food and Markets, and of Transportation and of the Commissioner of Public Safety, develop and implement a coordinated system to recruit, relocate, and train workers to ensure the labor force needs of Vermont's businesses are met.
2. Require from each business, training provider, or program that receives State funding to conduct workforce education and training a report that evaluates the results of the training. Each recipient shall submit its report on a schedule determined by the Commissioner and shall include at least the following information:
   1. name of the person who receives funding;
   2. amount of funding;
   3. activities and training provided;
   4. number of trainees and their general description;
   5. employment status of trainees; and
   6. future needs for resources.
3. Review reports submitted by each recipient of workforce education and training funding.
4. Issue an annual report to the Governor, the House Committees on Appropriations and on Commerce and Economic Development, and the Senate Committees on Appropriations and on Economic Development, Housing and General Affairs on or before December 1 that includes a systematic evaluation of the accomplishments of the State workforce investment system and the performance of participating agencies and institutions. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
5. Coordinate public and private workforce programs to ensure that information is easily accessible to students, employees, and employers, and that all information and necessary counseling is available through one contact.
6. Facilitate effective communication between the business community and public and private educational institutions.
7. Notwithstanding any provision of State law to the contrary, and to the fullest extent allowed under federal law, ensure that in each State and State-funded workforce education and training program, the program administrator collects and reports data and results at the individual level by Social Security number or an equivalent.
8. Coordinate intentional outreach and connections between students graduating from Vermont's colleges and universities and employment opportunities in Vermont.

   Added 2013, No. 199 (Adj. Sess.), § 41; amended 2015, No. 11 , § 9; 2015, No. 157 (Adj. Sess.), § K.1; 2017, No. 154 (Adj. Sess.), § 19, eff. May 21, 2018; 2017, No. 189 (Adj. Sess.), § 15.

§ 541. Repealed. 2013, No. 199 (Adj. Sess.), § 41.

§ 541a. State Workforce Development Board.

1. Board established; duties.  Pursuant to the requirements of 29 U.S.C. § 3111, the Governor shall establish the State Workforce Development Board to assist the Governor in the execution of his or her duties under the Workforce Innovation and Opportunity Act of 2014 and to assist the Commissioner of Labor as specified in section 540 of this title.
2. Additional duties; planning; process.
   1. To inform its decision making and to provide effective assistance under subsection (a) of this section, the Board shall:
      1. conduct an ongoing public engagement process throughout the State that brings together employers and potential employees, including students, the unemployed, and incumbent employees seeking further training, to provide feedback and information concerning their workforce education and training needs; and
      2. maintain familiarity and promote alignment with the federal, State, and regional Comprehensive Economic Development Strategies and other economic development planning processes and coordinate workforce and education activities in the State, including the development and implementation of the State plan required under the Workforce Innovation and Opportunity Act of 2014, with economic development planning processes occurring in the State, as appropriate.
   2. To ensure that State-funded and federally funded workforce development and training efforts are of the highest quality and aligned with the State's workforce and economic goals, the Board shall regularly:
      1. review and approve State-endorsed Career Pathways that reflect a shared vision across multiple sectors and agencies for improving employment outcomes, meeting employers' and workers' needs, and leveraging available State and federal funding; and
      2. publicize the State-endorsed Career Pathways, including on websites managed by the Agency of Education, Department of Labor, and Department of Economic Development.
   3. The Board shall have the authority to approve State-endorsed and industry-recognized credentials and certificates, excluding high school diplomas and postsecondary academic degrees, that are aligned with the Career Pathways.
3. Membership.  The Board shall consist of the Governor and the following members who are appointed by the Governor in conformance with the federal Workforce Innovation and Opportunity Act and who serve at his or her pleasure, unless otherwise indicated:
   1. the Commissioner of Labor;
   2. two members of the Vermont House of Representatives appointed by the Speaker of the House;
   3. two members of the Vermont Senate appointed by the Senate Committee on Committees;
   4. the President of the University of Vermont;
   5. the Chancellor of the Vermont State Colleges;
   6. the President of the Vermont Student Assistance Corporation;
   7. a representative of an independent Vermont college or university;
   8. a director of a regional technical center;
   9. a principal of a Vermont high school;
   10. two representatives of labor organizations who have been nominated by a State labor federation;
   11. two representatives of individuals and organizations who have experience with respect to youth activities, as defined in 29 U.S.C. § 3102(71);
   12. two representatives of individuals and organizations who have experience in the delivery of workforce investment activities, as defined in 29 U.S.C. § 3102(68);
   13. the lead State agency officials with responsibility for the programs and activities carried out by one-stop partners, as described in 29 U.S.C. § 3151(b) , or if no official has that responsibility, representatives in the State with responsibility relating to these programs and activities;
   14. the Commissioner of Economic Development;
   15. the Secretary of Commerce and Community Development;
   16. the Secretary of Human Services;
   17. the Secretary of Education;
   18. two individuals who have experience in, and can speak for, the training needs of underemployed and unemployed Vermonters; and
   19. a number of appointees sufficient to constitute a majority of the Board who:
       1. are owners, chief executives, or operating officers of businesses, and other business executives or employers with optimum policymaking or hiring authority;
       2. represent businesses with employment opportunities that reflect in-demand sectors and employment opportunities in the State; and
       3. are appointed from among individuals nominated by State business organizations and business trade associations.
4. Operation of Board.
   1. Member representation.
      1. A member of the State Board may send a designee that meets the requirements of subdivision (B) of this subdivision (1) to any State Board meeting who shall count toward a quorum and shall be allowed to vote on behalf of the Board member for whom he or she serves as a designee.
      2. Members of the State Board or their designees who represent organizations, agencies, or other entities shall be individuals with optimum policymaking authority or relevant subject matter expertise within the organizations, agencies, or entities.
      3. The members of the Board shall represent diverse regions of the State, including urban, rural, and suburban areas.
   2. Chair.  The Governor shall select a chair for the Board from among the business representatives appointed pursuant to subdivision (c)(18) of this section.
   3. Meetings.  The Board shall meet at least three times annually and shall hold additional meetings upon call of the Chair.
   4. Committees; work groups; ad hoc committees.  The Chair, in consultation with the Commissioner of Labor, may:
      1. assign one or more members or their designees to standing committees, ad hoc committees, or work groups to carry out the work of the Board; and
      2. appoint one or more nonmembers of the Board to a standing committee, ad hoc committee, or work group and determine whether the individual serves as an advisory or voting member, provided that the number of voting nonmembers on a standing committee shall not exceed the number of Board members or their designees.
   5. Quorum meetings; voting.
      1. A majority of the sitting members of the Board shall constitute a quorum, and to be valid any action taken by the Board shall be authorized by a majority of the members present and voting at any regular or special meeting at which a quorum is present.
      2. The Board may permit one or more members to participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication, including an electronic, telecommunications, and video- or audio-conferencing conference telephone call, by which all members participating may simultaneously or sequentially communicate with each other during the meeting. A member participating in a meeting by this means is deemed to be present in person at the meeting.
      3. The Board shall deliver electronically the minutes for each of its meetings to each member of the Board and to the Chairs of the House Committees on Education and on Commerce and Economic Development, and to the Senate Committees on Education and on Economic Development, Housing and General Affairs.
      4. The Board may adopt in its bylaws the quorum, membership, and procedural requirements for standing committees.
   6. Reimbursement.
      1. Legislative members of the Board shall be entitled to compensation and expenses as provided in 2 V.S.A. § 23 .
      2. Unless otherwise compensated by his or her employer for performance of his or her duties on the Board, a nonlegislative member of the Board shall be eligible for per diem compensation of $50.00 per day for attendance at a meeting of the Board, and for reimbursement of his or her necessary expenses, which shall be paid through funds available for that purpose under the Workforce Innovation and Opportunity Act of 2014.
   7. Conflict of interest.  A member of the Board shall not:
      1. vote on a matter under consideration by the Board:
         1. regarding the provision of services by the member, or by an entity that the member represents; or
         2. that would provide direct financial benefit to the member or the immediate family of the member; or
      2. engage in any activity that the Governor determines constitutes a conflict of interest as specified in the State Plan required under 29 U.S.C. § 3112 or 3113.
   8. Sunshine provision.  The Board shall make available to the public, on a regular basis through open meetings, information regarding the activities of the Board, including information regarding the State Plan adopted pursuant to 29 U.S.C. § 3112 or 3113 and prior to submission of the State Plan to the U.S. Secretary of Labor, information regarding membership, and, on request, minutes of formal meetings of the Board.

      Added 2013, No. 199 (Adj. Sess.), § 41; amended 2015, No. 157 (Adj. Sess.), § K.1; 2017, No. 189 (Adj. Sess.), § 3; 2019, No. 80 , § 19.

§ 541b. Workforce education and training; duties of other State agencies, departments, and private partners.

1. To ensure the State Workforce Development Board and the Commissioner of Labor are able to fully perform their duties under this chapter, each agency and department within State government, and each person who receives funding from the State, shall comply within a reasonable period of time with a request for data and information made by the Board or the Commissioner in furtherance of their duties under this chapter.
2. The Agency of Commerce and Community Development shall coordinate its work in adopting a statewide economic development plan with the activities of the Board and the Commissioner of Labor.

   Added 2013, No. 199 (Adj. Sess.), § 41; amended 2015, No. 157 (Adj. Sess.), § K.1.

§ 542. Regional workforce education and training.

1. The Commissioner of Labor, in coordination with the Secretary of Commerce and Community Development, and in consultation with the State Workforce Development Board, is authorized to issue performance grants to one or more persons to perform workforce education and training activities in a region.
2. Each grant shall specify the scope of the workforce education and training activities to be performed and the geographic region to be served, and shall include performance measures and results to evaluate the grantee's performance.
3. The Commissioner of Labor and the Secretary of Commerce and Community Development shall jointly develop a grant process and eligibility criteria, as well as an outreach process for notifying potential participants of the grant program. The Commissioner of Labor shall have final authority to approve each grant.

   Added 1995, No. 45 , § 1; amended 1999, No. 27 , § 3, eff. May 19, 1999; 1999, No. 119 (Adj. Sess.), § 5, eff. May 18, 2000; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 212 (Adj. Sess.), § 1; 2009, No. 33 , § 22; 2009, No. 146 (Adj. Sess.), § G14, eff. June 1, 2010; 2011, No. 52 , § 14, eff. May 27, 2011; 2013, No. 199 (Adj. Sess.), § 41; 2015, No. 11 , § 10; 2015, No. 157 (Adj. Sess.), § K.1.

§ 543. Workforce education and training fund; grant programs.

1. Creation.  There is created the Workforce Education and Training Fund in the Department of Labor to be managed in accordance with 32 V.S.A. chapter 7, subchapter 5.
2. Purposes.  The Department shall use the Fund for the following purposes:
   1. training for Vermont workers, including those who are unemployed, underemployed, or in transition from one job or career to another;
   2. internships to provide students with work-based learning opportunities with Vermont employers;
   3. apprenticeship, preapprenticeship, and industry-recognized credential training; and
   4. other workforce development initiatives related to current and future job opportunities in Vermont as determined by the Commissioner of Labor.
3. Administrative and other support.  The Department of Labor shall provide administrative support for the grant award process. When appropriate and reasonable, the State Workforce Development Board and all other public entities involved in economic development and workforce education and training shall provide other support in the process.
4. Eligible activities.
   1. The Department, in collaboration with the Agency of Education when applicable, shall grant awards from the Fund to employers and entities, including private, public, and nonprofit entities, institutions of higher education, high schools, K-12 school districts, supervisory unions, technical centers, and workforce education and training programs that:
      1. create jobs, offer education, training, apprenticeship, preapprenticeship and industry-recognized credentials, mentoring, career planning, or work-based learning activities, or any combination;
      2. employ student-oriented approaches to workforce education and training; and
      3. link workforce education and economic development strategies.
   2. The Department may fund programs or projects that demonstrate actual increased income and economic opportunity for employees and employers for more than one year.
   3. The Department may fund student internships and training programs that involve the same employer in multiple years, with approval of the Commissioner.
5. [Repealed.]
6. Awards.  The Commissioner of Labor, in consultation with the Chair of the State Workforce Development Board, shall develop award criteria and may grant awards to the following:
   1. Training programs.
      1. Public, private, and nonprofit entities, including employers and education and training providers, for existing or new training programs that enhance the skills of Vermont workers and:
         1. train workers for trades or occupations that are expected to lead to jobs paying at least 200 percent of the current minimum wage or at least 150 percent if benefits are included; this requirement may be waived when warranted based on regional or occupational wages or economic reality;
         2. do not duplicate, supplant, or replace other available training funded with public money;
         3. provide a project timeline, including performance goals, and identify how the effectiveness and outcomes of the program will be measured, including for the individual participants, the employers, and the program as a whole; and
         4. articulate the need for the training and the direct connection between the training and the job.
      2. The Department shall grant awards under this subdivision (1) to programs or projects that:
         1. offer innovative programs of intensive, student-centric, competency-based education, training, apprenticeship, preapprenticeship and industry-recognized credentials, mentoring, or any combination of these;
         2. address the needs of workers who are unemployed, underemployed, or at risk of becoming unemployed, and workers who are in transition from one job or career to another;
         3. address the needs of employers to hire new employees or retrain incumbent workers, when the employer has demonstrated a need not within the normal course of business, with priority to training that results in new or existing job openings for which the employer intends to hire; or
         4. in the discretion of the Commissioner, otherwise serve the purposes of this chapter.
   2. Vermont Internship Program. Funding for eligible internship programs and activities under the Vermont Internship Program established in section 544 of this title.
   3. Vermont Returnship Program. Funding for eligible returnship programs and activities under the Vermont Returnship Program established in section 545 of this title.
   4. Apprenticeship Program. The Vermont Apprenticeship Program established under 21 V.S.A. chapter 13. Awards under this subdivision may be used to fund the cost of apprenticeship-related instruction provided by the Department of Labor.
   5. Career focus and planning programs. In collaboration with the Agency of Education, funding for one or more programs that institute career training and planning for young Vermonters, beginning in middle school.
7. Career Pathways.  Programs that are funded under this section resulting in a credit, certificate, or credential shall demonstrate alignment with a Career Pathway.
8. Expanding offerings.  A regional career and technical education center that develops an adult technical education program of study using funding under this section shall:
   1. make the program materials available to other regional career and technical education centers and adult technical education programs;
   2. to the extent possible, align the program with subsequent programs offered through the Vermont State College System, the University of Vermont and State Agricultural College, or an accredited independent college located in Vermont; and
   3. respond to current or projected occupational demands.

      Added 2007, No. 46 , § 4, eff. May 23, 2007; amended 2007, No. 182 (Adj. Sess.), § 7, eff. June 2, 2008; 2009, No. 33 , § 23; 2009, No. 54 , § 9, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § E.401.1; 2009, No. 1 46 (Adj. Sess.), § G14, eff. June 1, 2010; 2011, No. 52 , § 13, eff. May 27, 2011; 2013, No. 199 (Adj. Sess.), § 41; 2015, No. 51 , § C.3; 2015, No. 157 (Adj. Sess.), § K.1; 2017, No. 69 , § E.2, eff. June 28, 2017; 2017, No. 189 (Adj. Sess.), § 10.

§ 544. Vermont Internship Program.

1. 1. The Department of Labor, in consultation with the Agency of Education, shall develop, and the Department shall implement, a statewide Vermont Internship Program for students who are in high school or in college and for those who are recent graduates of 24 months or less. (a) (1)  The Department of Labor, in consultation with the Agency of Education, shall develop, and the Department shall implement, a statewide Vermont Internship Program for students who are in high school or in college and for those who are recent graduates of 24 months or less.
   2. The Department of Labor shall coordinate and provide funding to public and private entities for internship programs that match Vermont employers with students from public and private secondary schools, regional technical centers, the Community High School of Vermont, colleges, and recent graduates of 24 months or less.
   3. Funding awarded through the Vermont Internship Program may be used to build and administer an internship program and to provide participants with a stipend during the internship, based on need. Funds may be made only to programs or projects that:
      1. do not replace or supplant existing positions;
      2. expose students to the workplace or create real workplace expectations and consequences;
      3. provide a process that measures progress toward mastery of skills, attitude, behavior, and sense of responsibility required for success in that workplace;
      4. are designed to motivate and educate participants through work-based learning opportunities with Vermont employers;
      5. include mechanisms that promote employer involvement with secondary and postsecondary students and curriculum and the delivery of education at the participating schools; or
      6. offer participants a continuum of learning, experience, and relationships with employers that will make it financially possible and attractive for graduates to continue to work and live in Vermont.
   4. As used in this section, "internship" means a learning experience working with an employer where the intern may, but does not necessarily, receive academic credit, financial remuneration, a stipend, or any combination of these.
2. The Department of Labor, in collaboration with the Agencies of Agriculture, Food and Markets and of Education, State-funded postsecondary educational institutions, the State Workforce Development Board, and other State agencies and departments that have workforce education and training and training monies, shall:
   1. identify new and existing funding sources that may be allocated to the Vermont Internship Program;
   2. collect data and establish program goals and performance measures that demonstrate program results for internship programs funded through the Vermont Internship Program;
   3. develop or enhance a website that will connect students and graduates with internship opportunities with Vermont employers;
   4. engage appropriate agencies and departments of the State in the Internship Program to expand internship opportunities with State government and with entities awarded State contracts; and
   5. work with other public and private entities to develop and enhance internship programs, opportunities, and activities throughout the State.

      Added 2011, No. 52 , § 11, eff. May 27, 2011; amended 2013, No. 92 (Adj. Sess.), § 253, eff. Feb. 14, 2014; 2013, No. 199 (Adj. Sess.), § 41; 2015, No. 11 , § 11; 2015, No. 51 , § C.3; 2015, No. 157 (Adj. Sess.), § K.1; 2017, No. 189 (Adj. Sess.), § 11.

§ 545. Vermont Returnship Program.

1. As used in this section, "returnship" means an on-the-job learning experience working with an employer where an individual may, but does not necessarily, receive academic credit, financial remuneration, a stipend, or any combination of these for an individual who is returning to the workforce after an extended absence or is seeking a limited-duration on-the-job work experience in a different occupation or occupational setting.
2. 1. The Department of Labor shall develop and implement the statewide Vermont Returnship Program. (b) (1)  The Department of Labor shall develop and implement the statewide Vermont Returnship Program.
   2. The Department of Labor shall coordinate and provide funding to public and private entities for returnship programs and opportunities that match experienced workers with Vermont employers.
   3. Funding awarded through the Program may be used to build and administer coordinated and cohesive programs and to provide participants with a stipend during the returnship, based on need. Funds may be made available only to programs or projects that:
      1. do not replace or supplant existing positions;
      2. expose individuals to real and meaningful workplace experiences;
      3. provide a process that measures progress toward mastery of hard and soft professional skills and other factors that indicate a likelihood of success in the workplace;
      4. are designed to motivate and educate participants through work-based learning opportunities with Vermont employers; or
      5. offer participants a continuum of learning, experience, and relationships with employers that will make it financially possible and attractive for individuals to continue to work and live in Vermont.
3. The Department of Labor shall:
   1. identify new and existing funding sources that may be allocated to the Program;
   2. collect data and establish program goals and performance measures that demonstrate program results for returnship programs funded through the Program;
   3. engage appropriate agencies and departments of the State in the Program to expand returnship opportunities within State government and with entities awarded State contracts; and
   4. work with other public and private entities to develop and enhance returnship programs, opportunities, and activities throughout the State.

      Added 2017, No. 189 (Adj. Sess.), § 12.

§ 546. State postsecondary attainment goal.

1. It shall be the goal of the State of Vermont that not less than 70 percent of working-age Vermonters will hold a credential of value, as defined by the State Workforce Development Board, by the year 2025.
2. It is the policy of the State of Vermont to:
   1. promote awareness of career pathways and the value of postsecondary education and training;
   2. expand access to postsecondary education and training to students of all ages;
   3. increase completion of postsecondary education and training programs by ensuring that Vermonters have the supports they need to succeed; and
   4. maximize partnerships across and within sectors to achieve State workforce development and education goals.
3. In its annual report required in section 540 of this title, the Department shall include the number of postsecondary credentials awarded and the data sets that are used to inform the report.

   Added 2019, No. 80 , § 5.

§ 551. Declaration of policy and purpose.

1. It is hereby declared to be the public policy of this State and the purpose of this chapter to achieve and maintain such levels of air quality as will protect human health and safety, and to the greatest degree practicable, prevent injury to plant and animal life and property, foster the comfort and convenience of the people, promote the economic and social development of this State, and facilitate the enjoyment of the natural attractions of this State.
2. It is also declared that local and regional air pollution control programs are to be supported to the extent practicable as essential instruments for the securing and maintenance of appropriate levels of air quality.
3. To these ends it is the purpose of this chapter to provide for a coordinated statewide program of air pollution prevention, abatement, and control, for an appropriate distribution of responsibilities among the State and local units of government, and to facilitate cooperation across jurisdictional lines in dealing with problems of air pollution not confined within single jurisdictions, and to provide a framework within which all values may be balanced in the public interest.

   Added 1967, No. 310 (Adj. Sess.), § 1.

§ 552. Definitions.

As used in this chapter:

1. "Agency" means the Agency of Natural Resources.
2. "Air contaminant" means dust, fumes, mist, smoke, other particulate matter, vapor, gas, odorous substances, or any combination thereof.
3. "Air pollution" means the presence in the outdoor atmosphere of one or more air contaminants in such quantities, and duration as is or tends to be injurious to human health or welfare, animal or plant life, or property, or would unreasonably interfere with the enjoyment of life or property. Such effects may result from direct exposure to air contaminants, from deposition of air contaminants to other environmental media, or from alterations caused by air contaminants to the physical or chemical properties of the atmosphere.
4. [Repealed.]
5. "Emission" means a release into the outdoor atmosphere of air contaminants.
6. "Person" shall mean an individual, partnership, corporation, association, unincorporated organization, trust, or any other legal or commercial entity, including a joint venture or affiliated ownership. The word "person" also means any subdivision, agency, or instrumentality of this State, of any other state, of the United States, or of any interstate body.
7. "Secretary" means the Secretary of Natural Resources or the Secretary's duly authorized representative.
8. "Ozone-depleting chemical" means manufactured substances that are known or reasonably may be anticipated to cause or contribute to depletion of ozone in the earth's stratosphere.
   1. Primary ozone-depleting chemicals include:
      1. chlorofluorocarbon-11.
      2. chlorofluorocarbon-12.
      3. chlorofluorocarbon-113.
      4. chlorofluorocarbon-114.
      5. chlorofluorocarbon-115.
      6. halon-1211.
      7. halon-1301.
      8. halon-2402.
      9. carbon tetrachloride.
      10. methyl chloroform.
   2. Other ozone-depleting chemicals include:
      1. hydrochlorofluorocarbon-22.
      2. hydrochlorofluorocarbon-123.
      3. hydrochlorofluorocarbon-124.
      4. hydrochlorofluorocarbon-141(b).
      5. hydrochlorofluorocarbon-142(b).
   3. The Secretary may list, by rule, other manufactured substances that are known or reasonably may be anticipated to cause or contribute to depletion of stratospheric ozone.
9. "Reasonably available control technology" means devices, systems, process modifications, or other apparatus or techniques designed to prevent or control emissions that are reasonably available, taking into account the social, environmental, and economic impact of such controls, and alternative means of emission control.
10. "Schedule of compliance" means a schedule of remedial measures, including an enforceable sequence of actions or operations, leading to timely compliance with applicable requirements related to the control of air contaminant emissions or the prevention or control of air pollution.
11. "Greenhouse gas" means any chemical or physical substance that is emitted into the air and that the Secretary may reasonably anticipate to cause or contribute to climate change, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

    Added 1967, No. 310 (Adj. Sess.), § 2; amended 1971, No. 212 (Adj. Sess.), § 1; 1979, No. 195 (Adj. Sess.), § 1, eff. May 6, 1980; 1987, No. 76 , § 18; 1991, No. 266 (Adj. Sess.), § 3; 1993, No. 92 , § 2; 2003, No. 115 (Adj. Sess.), § 11; 2007, No. 209 (Adj. Sess.), § 3.

§ 553. Agency.

The Agency is designated as the air pollution control agency for the State. The Secretary or the Secretary's duly authorized representative, within the Agency, shall perform the functions vested in the Agency, as specified in the following sections of this chapter.

Added 1967, No. 310 (Adj. Sess.), § 3; amended 1971, No. 212 (Adj. Sess.), § 2; 1979, No. 195 (Adj. Sess.), § 2, eff. May 6, 1980; 2003, No. 115 (Adj. Sess.), § 12, eff. Jan. 31, 2005.

§ 554. Powers.

In addition to any other powers conferred on him or her by law, the Secretary shall have power to:

1. Appoint and employ personnel and consultants as may be necessary for the administration of this chapter.
2. Adopt, amend, and repeal rules, implementing the provisions of this chapter.
3. Hold hearings related to any aspect of or matter in the administration of this chapter, and in connection therewith, subpoena witnesses and the production of evidence.
4. Issue orders as may be necessary to effectuate the purposes of this chapter and enforce the same by all appropriate administrative and judicial proceedings.
5. Prepare and develop a comprehensive plan or plans for the prevention, abatement, and control of air pollution in this State.
6. [Repealed.]
7. Encourage local units of government to handle air pollution problems within their respective jurisdiction, and by compact on a cooperative basis, and to provide technical and consultative assistance therefor.
8. Encourage and conduct studies, investigations, and research relating to air contamination and air pollution and their causes, effects, prevention, abatement, and control.
9. Determine by appropriate means the degree of air contamination and air pollution in the State and the several parts thereof.
10. Make a continuing study of the effects of the emission of air contaminants from motor vehicles on the quality of the outdoor atmosphere of this State and the several parts thereof, and make recommendations to appropriate public and private bodies with respect thereto.
11. Establish ambient air quality standards for the State as a whole or for any part thereof, based on nationally recognized criteria applicable to the State of Vermont.
12. Collect and disseminate information and conduct educational and training programs relating to air contamination and air pollution.
13. Advise, consult, contract, and cooperate with other agencies of the State, local governments, industries, other states, interstate or interlocal agencies, and the federal government, and with interested persons or groups.
14. Consult, upon request, with any person proposing to construct, install, or otherwise acquire an air contaminant source or device or system for the control thereof, concerning the efficacy of the device or system, or the air pollution problem that may be related to the source, device or system.  Nothing in any consultation shall be construed to relieve a person from compliance with this chapter, rules in force pursuant thereto, or any other provision of law.
15. Accept, receive, and administer grants or other funds or gifts from public and private agencies, including the federal government, for the purpose of carrying out any of the functions of this chapter.  The funds received by the Secretary pursuant to this section shall be deposited in the State Treasury to the account of the Secretary.
16. Have access to records relating to emissions that cause or contribute to air contamination.

    Added 1967, No. 310 (Adj. Sess.), § 4; amended 1971, No. 212 (Adj. Sess.), § 3; 1989, No. 98 , § 4(b).

§ 555. Classification, reporting and registration.

1. The Secretary, by rule, may classify air contaminant sources, which in his or her judgment may cause or contribute to air pollution, according to levels and types of emissions and other characteristics that relate to air pollution, and may require reporting by any class. Classifications made pursuant to this subsection may apply to the State as a whole or to any designated area of the State, and shall be made with special reference to effects on health, economic, and social factors, and physical effects on property.
2. Any person operating or responsible for the operation of air contaminant sources of any class for which the rules of the Secretary require reporting shall make reports containing information as required by the Secretary concerning location, size, and height of contaminant outlets, processes employed, fuels used and the nature and time periods of duration of emissions, and such other information relevant to air pollution and available or reasonably capable of being assembled.
3. 1. Any person operating or responsible for the operation of an air contaminant source shall register the source with the Secretary and renew the registration annually if the source emits: (c) (1)  Any person operating or responsible for the operation of an air contaminant source shall register the source with the Secretary and renew the registration annually if the source emits:
      1. more than or equal to five tons of contaminants per year; or
      2. less than five tons of contaminants per year and is a source specified in rule by the Secretary.
   2. Each day of operating an air contaminant source without a valid, current registration shall constitute a separate violation and subject the operator to a civil penalty not to exceed $100.00 per violation. The Secretary shall, after notice and opportunity for public hearing, adopt rules to carry out this section.

      Added 1967, No. 310 (Adj. Sess.), § 5; amended 1971, No. 212 (Adj. Sess.), § 3; 1987, No. 76 , § 3; 2015, No. 23 , § 96; 2015, No. 57 , § 22b.

§ 556. Permits for the construction or modification of air contaminant sources.

1. No person shall construct or install any air contaminant source classified within a class or category identified by rule of the Secretary as being subject to permitting requirements under this section without first submitting a complete application to and obtaining a permit from the Secretary pursuant to this section. A complete application shall contain such plans, specifications and other information as the Secretary deems necessary in order to determine whether the proposed construction or installation will be in compliance with the provisions of this chapter and with the rules adopted under this chapter. Each applicant shall pay an application fee as required by 3 V.S.A. § 2822 .
2. The Secretary may require an applicant to submit any additional information that the Secretary considers necessary to make the completeness determination required in subsection (a) of this section and shall not grant a permit until the information is furnished and evaluated. When an application is filed under this section, the Secretary shall proceed in accordance with chapter 170 of this title.
3. If the Secretary determines that the proposed construction or installation of an air contaminant source will be in compliance with all requirements of this chapter and the rules adopted under this chapter, the Secretary shall issue a permit containing such terms and conditions as may be necessary to carry out the purposes of this chapter. If the Secretary determines that the proposed construction or installation of an air contaminant source will not be in compliance with all requirements of this chapter and the rules adopted under this chapter, the Secretary shall deny the permit, shall notify the applicant in writing, and shall state in that document the reasons for the permit denial.
4. The Secretary may suspend, terminate, modify, or revoke for cause and may reissue any permit issued under this section.
5. The Secretary may issue an operating permit required under section 556a of this title in conjunction with or as a part of a permit to construct or install, issued under this section, provided that there is compliance with all applicable requirements of both sections.
6. For the purposes of this chapter, the addition to or enlargement or replacement of an air contaminant source, or any major alteration therein, shall be construed as the construction or installation of a new air contaminant source.
7. All facilities or parts thereof identified in the plans, specifications or other information submitted pursuant to subsection (a) of this section shall be maintained in good working order.
8. The absence or failure to issue a permit pursuant to this section shall not relieve any person from compliance with any emission control requirements or with any other provision of law.
9. Notwithstanding any provisions of this section, section 5-503 of the air pollution control regulations, as adopted through April 27, 2007 (indirect source permits) is hereby repealed.

   Added 1967, No. 310 (Adj. Sess.), § 6; amended 1971, No. 212 (Adj. Sess.), § 3; 1993, No. 92 , § 3; 2009, No. 54 , § 56, eff. June 1, 2009; 2009, No. 146 (Adj. Sess.), § F8; 2015, No. 150 (Adj. Sess.), § 6, eff. Jan. 1, 2018.

§ 556a. Operating permits.

1. Upon a date specified in the rules adopted by the Secretary to implement this section, it shall be unlawful for any person to operate an air contaminant source that has allowable emissions of more than 10 tons per year of all contaminants, excluding greenhouse gases, except in compliance with a permit issued by the Secretary under this section. The Secretary may require that air contaminant sources with allowable emissions of 10 tons or less per year obtain such a permit, upon determining that the toxicity and quantity of hazardous air contaminants emitted may adversely affect susceptible populations, or if deemed appropriate based on an evaluation of the requirements of the federal Clean Air Act.
2. Any person required by this section to have a permit shall, not later than 12 months after the date on which the source becomes subject to rules adopted by the Secretary to implement this section, submit a complete permit application and related materials to the Secretary. The Secretary may require any applicant, including a person requesting permission to operate under the terms of a previously issued general permit, to submit any additional information that the Secretary considers necessary in order to determine whether the operation of the air contaminant source will be in compliance with the provisions of this chapter and with the rules adopted under this chapter. The Secretary may refuse to grant a permit, or permission to operate under the terms of a general permit, until that information is furnished and evaluated, and until that determination has been made. If a person submits a timely and complete application for a permit required by this section, but final action has not been taken on that application, the source's failure to have a permit shall not be a violation of this section, unless the delay in final action was due to the failure of the applicant to submit, in a timely manner, information required or requested to process the application.
3. When an application is filed under this section, the Secretary shall proceed in accordance with chapter 170 of this title.
4. Each permit issued under this section shall contain such terms and conditions as may be necessary to assure compliance with the requirements of this chapter and applicable rules and shall be issued for a fixed term, not to exceed five years. In addition, the Secretary shall, where necessary, include in a permit issued under this section conditions that revise existing or set new emission control requirements for the source based on, at a minimum, the application of reasonably available control technology. For any source that, in whole or in part, is not in compliance with all applicable requirements, the permit shall include an appropriate schedule of compliance that is acceptable to the Secretary.
5. A person may renew a permit issued under this section upon application to the Secretary for a fixed period of time, not to exceed five years. The Secretary shall not issue a permit renewal unless the applicant first demonstrates that the emissions from the subject source meet all applicable emission control requirements or are subject to, and in compliance with, an appropriate schedule of compliance.
6. If an application for a permit renewal has been submitted to the Secretary six months prior to the termination of the permit, and any additional information requested by the Secretary has been submitted in a timely manner, but the Secretary has failed to issue or deny the renewal permit before the end of the term of the previous permit, the permit shall not expire until the renewal permit has been issued or denied. In the event of a conflict between this subsection and 3 V.S.A. § 814(b) , the provisions of this section shall govern.
7. The Secretary shall have power to suspend, terminate, modify, or revoke for cause and to reissue any permit issued under this section.
8. The Secretary may adopt, as a rule under 3 V.S.A. chapter 25, a general operating permit covering numerous similar sources.
9. Failure of the Secretary to act on a permit application or a permit renewal application within 18 months after the date of receipt of a completed application shall be treated as a final permit action solely for purposes of obtaining judicial review of such action by the applicant, by any person who participated in the public comment process or by any other adversely affected person in order to compel the Secretary to act on such application without additional delay.
10. Except in compliance with a permit issued by the Secretary under this section, it shall be unlawful for a person to operate an air contaminant source that has allowable emissions of greenhouse gases that equal or exceed any threshold established by the U.S. Environmental Protection Agency at or above which such emissions are subject to the requirements of subchapter V (permits) of 42 U.S.C. chapter 85 (air pollution prevention and control). Based on available emission control technologies or energy efficiency measures, or as otherwise appropriate to implement the provisions of this chapter, the Secretary may adopt rules to require air contaminant sources with allowable emissions below such threshold to obtain a permit under this section.

    Added 1993, No. 92 , § 4; amended 2009, No. 146 (Adj. Sess.), § F9, eff. May 7, 2010; 2015, No. 75 (Adj. Sess.), § 4; 2015, No. 150 (Adj. Sess.), § 7, eff. Jan. 1, 2018.

§ 557. Inspections.

Any duly authorized officer, employee, or representative of the Secretary may enter and inspect any property, premise or place on or at which an air contaminant source is located or is being constructed or installed at any reasonable time for the purpose of ascertaining the state of compliance with this chapter and rules in force pursuant thereto. No authorized person shall refuse entry or access to any authorized representative of the Secretary who requests entry for purposes of inspection, and who presents appropriate credentials; nor shall any person obstruct, hamper, or interfere with the inspection. If requested, the owner or operator of the premises shall receive a report setting forth all facts found that relate to compliance status.

Added 1967, No. 310 (Adj. Sess.), § 7; amended 1971, No. 212 (Adj. Sess.), § 3.

§ 558. Emission control requirements.

The Secretary may establish such emission control requirements, by rule, as in his or her judgment may be necessary to prevent, abate, or control air pollution. The requirements may be for the State as a whole or may vary from area to area, as may be appropriate to facilitate accomplishment of the purposes of this chapter, and in order to take necessary or desirable account of varying local conditions.

Added 1967, No. 310 (Adj. Sess.), § 8; amended 1971, No. 212 (Adj. Sess.), § 3.

§ 559. Repealed. 1989, No. 98, § 4(b).

§ 560. Emergency procedure.

1. Any other provisions of law to the contrary notwithstanding, if the Secretary finds that a generalized condition of air pollution exists and that it creates an emergency requiring immediate action to protect human health or safety, with the concurrence of the Governor, the Secretary shall order persons causing or contributing to the air pollution to reduce or discontinue immediately the emission of air contaminants and such order shall fix a place and time not later than 24 hours thereafter for a hearing to be held before the Director.  Not more than 24 hours after the commencement of such hearing and without adjournment thereof, the Director shall affirm, modify or set aside the order.
2. In the absence of a generalized condition of air pollution of the type referred to in subsection (a) of this section, if the Secretary finds that emissions from the operation of one or more air contaminant sources is causing imminent danger to human health or safety, the Director of Occupational Health may order the person or persons responsible for the operation or operations in question to reduce or discontinue emissions immediately, without regard to the provisions of section 559 of this title.  In that event, the requirements for hearing and affirmance, modification, or setting aside of orders set forth in subsections 559(a) and (b) shall apply.
3. Nothing in this section shall be construed to limit any power that the Governor or any other officer may have to declare an emergency and act on the basis of such declaration.

   Added 1967, No. 310 (Adj. Sess.), § 10; amended 1971, No. 205 (Adj. Sess.), § 6; 1971, No. 212 (Adj. Sess.), § 3.

§ 561. Variances.

1. A person who owns or is in control of any plant, building, structure, process, or equipment may apply to the Secretary for a variance from the rules adopted under this chapter. The Secretary may grant a variance if the Secretary finds that:
   1. the emissions occurring or proposed to occur do not endanger or tend to endanger human health or safety; and
   2. compliance with the rules from which variance is sought would produce serious hardship without equal or greater benefits to the public.
2. No variance shall be granted pursuant to this section except after public notice and an opportunity for a public meeting and until the Secretary has considered the relative interests of the applicant, other owners of property likely to be affected by the discharges, and the general public.
3. Any variance or renewal thereof shall be granted within the requirements of subsection (a) of this section and for time periods and under conditions consistent with the reasons therefore, and within the following limitations:
   1. If the variance is granted on the ground that there is no practicable means known or available for the adequate prevention, abatement, or control of the air pollution involved, it shall be only until the necessary practicable means for prevention, abatement, or control become known and available, and subject to the taking of any substitute or alternate measures that the Secretary may prescribe.
   2. If the variance is granted on the ground that compliance with the particular requirement or requirements from which variance is sought will necessitate the taking of measures that, because of their extent or cost, must be spread over a considerable period of time, it shall be for a period not to exceed such reasonable time as, in the view of the Secretary is requisite for the taking of the necessary measures. A variance granted on the ground specified herein shall contain a time schedule for the taking of action in an expeditious manner and shall be conditioned on adherence to the time schedule.
   3. If the variance is granted on the ground that it is justified to relieve or prevent hardship of a kind other than that provided for in subdivisions (1) and (2) of this subsection, it shall be for not more than one year, except that a variance granted from the rules of the Secretary pertaining to stage II vapor recovery controls at gasoline dispensing facilities shall be for a period that extends until January 1, 2013.
4. Any variance granted pursuant to this section may be renewed on terms and conditions and for periods that would be appropriate on initial granting of a variance. If complaint is made to the Secretary on account of the variance, no renewal thereof shall be granted, unless following public notice and an opportunity for a public meeting on the complaint, the Secretary finds that renewal is justified. No renewal shall be granted except on application therefore. The application shall be made at least 60 days prior to the expiration of the variance. Immediately upon receipt of an application for renewal, the Secretary shall give public notice of the application.
5. A variance or renewal shall not be a right of the applicant or holder thereof but shall be in the discretion of the Secretary.
6. Nothing in this section and no variance or renewal granted pursuant hereto shall be construed to prevent or limit the application of the emergency provisions and procedures of section 560 of this chapter to any person or the person's property.
7. On application from a person who is subject to an increased air emission fee caused by amendments to the provisions of 3 V.S.A. § 2822(j) , (k), and (l), the Secretary may grant an amendment in fee amount. A fee amendment under this subsection may be granted only if the applicant establishes that payment of fees would produce serious hardship. Fee amendments granted under this subsection shall not be subject to the findings required for the issuance of a variance under subsection (a) of this section, but fee amendments shall otherwise be subject to the provisions of this chapter regarding variances.

   Added 1967, No. 310 (Adj. Sess.), § 11; amended 1971, No. 212 (Adj. Sess.), § 3; 1993, No. 92 ,§§ 5, 19; 1993, No. 232 (Adj. Sess.), § 38, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 13, eff. Jan. 31, 2005; 2005, No. 26 , § 4; 2009, No. 22 , § 9(c).

§ 562. Hearings and judicial review appeals.

1. No rule or regulation and no amendment or repeal thereof shall take effect except after public hearing. The Secretary shall appoint a time and place for the hearing and shall order the publication of the substance thereof and of the time and place of hearing two weeks successively in the daily newspapers of the State, the last publication to be at least seven days before the day appointed for the hearing.
2. Appeals of any act or decision of the Secretary under this chapter shall be made in accordance with chapter 220 of this title.
3. [Repealed.]
4. -(f)  [Repealed.]

   (g) If a permit is denied under this section, and that denial is the subject of either an appeal or a request for a variance, the applicant need not commence application proceedings anew, once those issues are resolved.

   Added 1967, No. 310 (Adj. Sess.), § 12; amended 1971, No. 185 (Adj. Sess.), § 24, eff. March 29, 1972; 1971, No. 212 (Adj. Sess.), § 3; 1993, No. 92 , § 6; 1993, No. 92 , § 6; 1993, No. 232 (Adj. Sess.), § 38, eff. March 15, 1995; 2003, No. 115 (Adj. Sess.), § 14, eff. Jan. 31, 2005.

§ 563. Confidential records; penalty.

1. Confidential records.  The Secretary shall not withhold emissions data and emission monitoring data from public inspection or review. The Secretary shall keep confidential any record or other information furnished to or obtained by the Secretary concerning an air contaminant source, other than emissions data and emission monitoring data, that qualifies as a trade secret pursuant to 1 V.S.A. § 317(c)(9) .
2. Penalty.  A person who knowingly violates this section shall be fined not to exceed $100.00.

   Added 1967, No. 310 (Adj. Sess.), § 13; amended 1971, No. 212 (Adj. Sess.), § 3; 2015, No. 75 (Adj. Sess.), § 3.

§ 564. Local air pollution control programs.

1. A municipality may establish and thereafter administer within its jurisdiction an air pollution control program that:
   1. provides by ordinance or local law for requirements compatible with, or stricter or more extensive than, those imposed by sections 558, 560, and 561 of this title and regulations issued thereunder;
   2. provides for the enforcement of such requirements by appropriate administrative and judicial process;
   3. provides for administrative organizations, staff, financial and other resources necessary to effectively and efficiently carry out its program; and
   4. is approved by the Secretary as adequate to meet the requirements of this chapter and any applicable rules and regulations pursuant thereto.
2. A municipality may administer all or part of its air pollution control program in a compact if the program meets the requirements of subsection (a) of this section.
3. If an approved local air pollution authority so petitions and the Secretary finds that the control of a particular class of air contaminant source because of its complexity or magnitude is beyond the reasonable capability of the local air pollution control authorities or may be more efficiently and economically performed at the State level, he or she may assume and retain jurisdiction over that class of air contaminant source.  Classifications pursuant to this subsection may be either on the basis of the nature of the sources involved or on the basis of their relationship to the size of the communities in which they are located.
4. Nothing in this chapter shall be construed to supersede or oust the jurisdiction of any local air pollution control program in operation on July 1, 1968, provided that within two years from such date any such program shall meet all requirements of this chapter for a local air pollution control program.  Any approval required from the Secretary shall be deemed granted unless the Secretary takes specific action to the contrary.

   Added 1967, No. 310 (Adj. Sess.), § 14; amended 1971, No. 212 (Adj. Sess.), § 3.

§ 565. Burning wood within municipality.

1. Any other provision notwithstanding, the legislative branch of a municipality may authorize the burning of natural wood and chemically untreated wood at a place within the municipality. The burning of the wood shall be conducted under the direction and at such times as the fire warden for the municipality determines.
2. [Repealed.]

   Added 1971, No. 244 (Adj. Sess.), eff. April 6, 1972; amended 1973, No. 224 (Adj. Sess.), eff. April 3, 1974; 1977, No. 56 , § 1, eff. April 21, 1977.

§ 566. State and federal aid.

Local air pollution control agencies established or approved pursuant to this chapter may make application for, receive, administer, and expend federal funds for the control of air pollution or the development and administration of programs related to air pollution control, provided the application is first submitted to and approved by the Secretary. The Secretary shall approve the application if it is consistent with this chapter and any other applicable requirements of law.

Added 1967, No. 310 (Adj. Sess.), § 15; amended 1971, No. 212 (Adj. Sess.), § 3.

§ 567. Motor vehicle pollution.

1. The Secretary in conjunction with the Department of Motor Vehicles may provide rules for the control of emissions from motor vehicles.  Such rules may prescribe requirements for the installation and use of equipment designed to reduce or eliminate emissions and for the proper maintenance of the equipment and the vehicles.  Rules pursuant to this section shall be consistent with provisions of federal law, if any, relating to control of emissions from the vehicles concerned and shall not require, as a condition precedent to the initial sale of a vehicle or vehicular equipment, the inspection, certification, or other approval of any feature or equipment designed for the control of emissions from motor vehicles, if the feature or equipment has been certified, approved, or otherwise authorized pursuant to federal law.
2. Except as permitted or authorized by law, no person shall fail to maintain in good working order or remove, dismantle, or otherwise cause to be inoperative any equipment or feature constituting an operational element of the air pollution control system or mechanism of a motor vehicle and required by rules pursuant to this chapter to be maintained in or on the vehicle.  Any failure to maintain in good working order or removal, dismantling, or causing of inoperability shall subject the owner or operator to suspension or cancellation of the registration for the vehicle by the Department of Motor Vehicles. The vehicle shall not thereafter be eligible for registration until all parts and equipment constituting operational elements of the motor vehicle have been restored, replaced, or repaired and are in good working order.
3. The Secretary shall consult with the Department of Motor Vehicles and furnish it with technical information, including testing techniques, standards, and instructions for emission control features and equipment.
4. When rules have been issued requiring the maintenance of features or equipment in or on motor vehicles for the purpose of controlling emissions therefrom, no motor vehicle shall be issued an inspection sticker unless all the required features or equipment have been inspected in accordance with the standards, testing techniques, and instructions furnished pursuant to subsection (b) hereof and has been found to meet those standards.
5. The remedies and penalties provided here apply to violations of this section and provisions of section 568 of this title shall not apply.
6. As used in this section, "motor vehicle" shall have the same meaning as defined in 23 V.S.A. § 4 .

   Added 1967, No. 310 (Adj. Sess.), § 16; amended 1971, No. 212 (Adj. Sess.), § 3.

§ 568. Penalties.

1. Any person who knowingly violates any provisions of this chapter or the rules adopted under this chapter or who knowingly fails or refuses to obey or comply with any order or the terms or conditions of any permit issued in accordance with this chapter, shall be fined not more than $100,000.00 or be imprisoned not more than five years, or both. Each violation may be considered a separate and distinct offense and, in the case of a continuing violation, each day's continuance may be deemed a separate and distinct offense. These penalties shall not apply to violations of section 563 of this title.
2. Any person who knowingly makes any false statement, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained under this chapter, or by any permit, rule, regulation, or order issued under this chapter, or who falsifies, tampers with, or knowingly renders inaccurate any monitoring device or method required to be maintained under this chapter or by any permit, rule, regulation, or order issued under this chapter, shall, upon conviction, be punished by a fine of not more than $50,000.00 or by imprisonment for not more than one year, or by both. Each violation may be considered a separate and distinct offense and, in the case of a continuing violation, each day's continuance may be deemed a separate and distinct offense.

   Added 1967, No. 310 (Adj. Sess.), § 17; amended 1971, No. 212 (Adj. Sess.), § 3; 1993, No. 92 , § 7.

§ 569. Limitations.

Nothing in this chapter shall be construed to:

1. Affect the relations between employers and employees with respect to or arising out of any condition of air contamination or air pollution.
2. Supersede or limit the applicability of any law or ordinance relating to sanitation, industrial health, or safety.
3. Grant to the Director any jurisdiction or authority with respect to air contamination existing solely within commercial and industrial plants, works, or shops or private property appurtenant thereto.

   Added 1967, No. 310 (Adj. Sess.), § 18.

§ 570. Exemption from taxation.

Approved air pollution treatment facilities shall be exempted from real and personal property taxation in the same manner provided tax exemption of water treatment facilities under the provisions of 32 V.S.A. § 3802 .

Added 1967, No. 310 (Adj. Sess.), § 19.

§ 571. Repealed. 1989, No. 98, § 4(b).

§ 572. Exemption; steam locomotives and engines.

The provisions of this chapter shall not apply to any steam locomotives, engines and rolling stock used in connection with the operation of a railroad within the State.

Added 1971, No. 174 (Adj. Sess.), eff. March 28, 1972.

Cross References

Cross references. Railroads generally, see 5 V.S.A. § 3421 et seq.

§ 573. Motor vehicle air conditioning.

1. After January 1, 1991, no person, for compensation, may perform service on motor vehicle air conditioners, unless that person uses equipment that is certified by the Underwriters Laboratories, or an institution determined by the Secretary to be comparable, as meeting the Society of Automotive Engineers standard applicable to equipment for the extraction and reclamation of refrigerant from motor vehicle air conditioners.
2. The Secretary, by rule, shall establish a phased schedule for the acquisition of that equipment by establishments that repair motor vehicles, requiring early acquisition by high-volume establishments and subsequent acquisition by lower-volume establishments, providing that all establishments that wish to continue to service motor vehicle air conditioning shall have that equipment in use by January 1, 1991.  The Secretary, by rule, shall require these establishments to document motor vehicles repaired and chlorofluorocarbons (CFCs) purchased.
3. After October 1, 1989, no person shall sell any CFC coolant in a container smaller than 15 pounds, unless it bears a warning label indicating the product's danger to ozone in the stratosphere.  After January 1, 1991, no person shall sell or offer for sale:
   1. CFC coolant, suitable for use in motor vehicle air conditioners, for noncommercial or nonindustrial usage; or
   2. CFC coolant, suitable for use in motor vehicle air conditioners, in containers smaller than 15 pounds.
4. No motor vehicle with a model year of 1995 or later may be registered in the State or sold to a consumer or dealer in the State, if it contains air conditioning that uses CFCs.  No new motor vehicle may be sold or offered for retail sale in the State, if it contains air conditioning that uses CFCs unless it bears an 8-inch, by 11-inch placard attached to a passenger window, that reads as follows: "AIR CONDITIONING IN THIS VEHICLE CONTAINS CHLOROFLUOROCARBONS (CFCS).  CFCS DEPLETE THE EARTH'S PROTECTIVE OZONE LAYER, CAUSING SKIN CANCER AND ENVIRONMENTAL DAMAGE."
5. As used in this section, "motor vehicle" shall have the same meaning as defined in 23 V.S.A. § 4 .
6. The Secretary, by January 15, 1992, shall report to the general assembly with regard to the condition of the stratospheric ozone layer and the latest information as to the causes of that condition.  The report also shall address the progress being made by manufacturers of motor vehicles that are commonly sold or registered in this State in developing and completing production of motor vehicles that have air conditioning that use refrigerants other than CFCs.  This report shall include any appropriate recommendations.

   Added 1989, No. 59 , § 1; amended 1991, No. 46 , § 1.

§ 574. Regulation of ozone-depleting products.

1. After January 1, 1990, no person shall sell or offer to sell fire extinguishers for noncommercial or nonindustrial usage, if those fire extinguishers contain halons or other ozone-depleting substances as may be identified by rule of the Secretary; sales to fire departments, for their own use, shall not be prohibited.
2. After January 1, 1990, no person shall sell or offer to sell:
   1. CFC cleaning sprays for noncommercial or nonindustrial usage in cleaning electronic and photographic equipment,
   2. CFC propelled plastic party streamers, or
   3. CFC noise horns.
3. The Secretary, by rule adopted no earlier than March 1, 1990, may require the usage of equipment that meets standards established by the Underwriters Laboratories, or an institution determined by the Secretary to be comparable, for recovery and recycling of CFC coolant during the servicing of building air conditioning and of large refrigeration units, if the Secretary finds that equipment to be portable and suitable for those purposes.
4. By January 15, 1990, the Secretary shall report to the natural resources and energy committees of the General Assembly with the following:
   1. an analysis of the uses within the State of ozone-depleting chemicals;
   2. the advantages and disadvantages of alternatives to those chemicals (both in terms of impacts on the ozone and in terms of other health and environmental impacts);
   3. opportunities for recovery and recycling of these chemicals;
   4. any rules proposed under subsection (c) of this section; and
   5. any appropriate recommendations for action by the State.
5. The Secretary, by January 15, 1991, shall report to the natural resources and energy committees of the General Assembly with recommendations for the systematic retrieval, storage, and appropriate reuse of CFCs from refrigerators, air conditioners, and motor vehicles that face immediate disposal. This report shall consider, but shall not be limited to considering, regional CFC removal centers, circuit riding CFC removal equipment, or other appropriate procedures or equipment.
6. After January 1, 1993, no person shall sell or offer to sell any aerosol-propelled consumer product, if it contains hydrochlorofluorocarbons (HCFCs). The Secretary, on application, may postpone the effect of the prohibition established under this subsection, on a case-by-case basis, upon finding that the product is a health, safety-related, or industrial product, for which acceptable alternatives are not available. Any postponement granted under this subsection shall be granted for a specified period of time, not to exceed one year. Extensions granted may be renewed, if appropriate.
7. After January 1, 1993, no disposal facility or transfer station may dispose of a residential, institutional, commercial, or industrial refrigerator, freezer, refrigerator-freezer, air conditioner, or other cooling device or machine that uses CFCs, without ensuring the item in question is properly drained of CFCs, according to procedures established by rule of the Secretary.
8. After January 1, 1993, no person shall sell or offer to sell cleaning liquid for the heads of videotape recorders, receivers, and other related machines, if that liquid contains ozone-depleting chemicals.
9. 1. The Secretary, by rule, shall provide for the reclamation of CFCs recovered under the provisions of this section and section 573 of this title. The rules may provide standards for reclamation equipment and equipment operators, may allow reclamation through a central facility or by the establishment of on-site reclamation capabilities, may allow reclamation by the private sector, the municipalities, or solid waste management districts, and may establish State-operated reclamation efforts. (i) (1)  The Secretary, by rule, shall provide for the reclamation of CFCs recovered under the provisions of this section and section 573 of this title. The rules may provide standards for reclamation equipment and equipment operators, may allow reclamation through a central facility or by the establishment of on-site reclamation capabilities, may allow reclamation by the private sector, the municipalities, or solid waste management districts, and may establish State-operated reclamation efforts.
   2. Costs of CFC reclamation under this subsection shall be borne by the State.

      Added 1989, No. 59 , § 1; amended 1991, No. 266 (Adj. Sess.), §§ 1, 4.

§ 574a. Ozone-depleting chemicals in industry.

1. By July 1, 1993, any person who uses an ozone-depleting chemical as part of a manufacturing process (excluding any associated refrigeration or air conditioning) shall notify the Secretary of the person's plans for eliminating the use of ozone-depleting chemicals through changes in production methods or processes, through the use of environmentally benign substitute chemicals, or through other methods acceptable to the Secretary, which shall:
   1. identify the alternatives considered, the alternative selected, and the basis for the selection;
   2. identify any discharges to the air and other media associated with the alternative selected;
   3. include interim measures, designed to minimize the release of the ozone-depleting chemicals to the environment until use of the ozone depleter ceases, or as expeditiously as practicable, but in no event later than July 1, 1995.
2. Any emissions that may be associated with the alternative selected shall be in compliance with all other provisions of this chapter and rules adopted pursuant to this chapter.
3. After July 1, 1995, no person shall use primary ozone-depleting chemicals, including those listed in subdivision 552(8)(A) of this title, as part of a manufacturing process, excluding any associated refrigeration and air conditioning.
4. The Secretary, upon application by any person subject to this section, may extend the date provided in subdivision (a)(3) of this section, on a case-by-case basis, upon finding that acceptable methods for eliminating ozone-depleting chemicals are not available.
   1. An extension granted under this subsection shall be granted for a specified period of time, not to exceed one year. Extensions granted may be renewed, if appropriate.
   2. The Secretary may impose interim requirements to limit the emissions of ozone-depleting chemicals as a condition of any extension granted pursuant to this subsection.

      Added 1991, No. 266 (Adj. Sess.), § 2.

§ 575. Hazardous air contaminant monitoring program.

The Secretary shall establish a hazardous air contaminant monitoring program. The goals of the program shall be to:

1. measure the presence of hazardous air contaminants in ambient air;
2. identify sources of hazardous air contaminants;
3. assess human health and ecological risk to focus studies on those air contaminants that pose the greatest risk;
4. gather sufficient data to allow the Secretary to establish appropriately protective standards; and
5. ensure adequate data are collected to support the State's operating permit program.

   Added 1993, No. 92 , § 15.

§ 576. Small equipment for burning waste oil.

Effective July 1, 1997, the burning of waste oil in small fuel burning equipment described as "pot burners" or "vaporizing" burners shall be prohibited, as shall the retail sale of these burners.

Added 1993, No. 219 (Adj. Sess.), § 2.

§ 577. Prohibition on addition of gasoline ethers to fuel products.

1. Effective January 1, 2007, no person shall knowingly sell at retail in this State, sell for use in this State, or store in an underground or aboveground storage tank in this State any fuel product that contains a gasoline ether in a quantity greater than one-half of one percent per volume unless authorized under subsection (c) of this section. Nothing in this subsection shall be interpreted to prohibit the transshipment of a fuel product containing a gasoline ether in a quantity greater than one-half of one percent per volume through the State for disposition outside the State. Transshipment does not include the storage of a fuel product coincident to shipment.
2. As used in this section:
   1. "Ether" means an organic compound formed by the treatment of an alcohol with a dehydrating agent resulting in two organic radicals joined by an oxygen atom.
   2. "Fuel product" means gasoline, reformulated gasoline, benzene, benzol, diesel fuel, kerosene, or any other volatile and inflammable liquid that is produced, compounded, offered for sale, or used to generate power in an internal combustion engine.
   3. "Gasoline ether" means any ether added to a fuel product, including methyl tertiary butyl ether (MTBE), tertiary amyl methyl ether (TAME), di-isopropyl ether (DIPE), and ethyl butyl ether (ETBE). "Gasoline ether" shall not include prepackaged goods intended for retail use, including starting fluid and octane booster.
   4. "Motor vehicle" means all vehicles propelled or drawn by power other than muscular power, except farm tractors, vehicles running only upon stationary rails or tracks, motorized highway building equipment, road-making appliances, snowmobiles, motorcycles, all-terrain vehicles, tracked vehicles, or electric personal assistive mobility devices.
   5. "Race" means a race or contest on an oval track permitted under 26 V.S.A. § 4802 involving a motor vehicle at which prizes or other consideration is awarded to participants or admission is charged to spectators. However, this subdivision shall not apply to sports car events as that term is defined in 26 V.S.A. § 4801 .
3. A fuel product used by a motor vehicle in a race may contain a gasoline ether and may be sold at retail or sold at wholesale for use in a race in the State, provided that it is sold in prepackaged drums, pails, or containers.

   Added 2005, No. 26 , § 2; amended 2007, No. 55 , § 1, eff. May 29, 2007.

§ 578. Greenhouse gas reduction requirements.

1. Greenhouse gas reduction requirements.  Vermont shall reduce emissions of greenhouse gases from within the geographical boundaries of the State and those emissions outside the boundaries of the State that are caused by the use of energy in Vermont, as measured and inventoried pursuant to section 582 of this title, by:
   1. not less than 26 percent from 2005 greenhouse gas emissions by January 1, 2025 pursuant to the State's membership in the United States Climate Alliance and commitment to implement policies to achieve the objectives of the 2016 Paris Agreement;
   2. not less than 40 percent from 1990 greenhouse gas emissions by January 1, 2030 pursuant to the State's 2016 Comprehensive Energy Plan; and
   3. not less than 80 percent from 1990 greenhouse gas emissions by January 1, 2050 pursuant to the State's 2016 Comprehensive Energy Plan.
2. Vermont climate collaborative.  The Secretary will participate in the Vermont climate collaborative, a collaboration between State government and Vermont's higher education, business, agricultural, labor, and environmental communities. Wherever possible, members of the collaborative shall be included among the membership of the program development working groups established by the climate change oversight committee created under 2008 Acts and Resolves No. 209, Sec. 14. State entities shall cooperate with the climate change oversight committee in pursuing the priorities identified by the committee. The Secretary shall notify the general public that the collaborative is developing greenhouse gas reduction programs and shall provide meaningful opportunity for public comment on program development. Programs shall be developed in a manner that implements State energy policy, as specified in 30 V.S.A. § 202a .
3. Implementation of State programs to reduce greenhouse gas emissions.  In order to facilitate the State's compliance with the goals established in this section, all State agencies shall consider any increase or decrease in greenhouse gas emissions in their decision-making procedures with respect to the purchase and use of equipment and goods; the siting, construction, and maintenance of buildings; the assignment of personnel; and the planning, design, and operation of programs, services, and infrastructure.
4. Advocacy for cap and trade program for greenhouse gases, including those caused by transportation, heating, cooling, and ventilation.  In order to increase the likelihood of the State meeting the goals established under this section, the Public Utility Commission, the Secretary of Natural Resources, and the Commissioner of Public Service shall advocate before appropriate regional or national entities and working groups in favor of the establishment of a regional or national cap and trade program for greenhouse gas emissions, including those caused by transportation, heating, cooling, and ventilation. This may take the form of an expansion of the existing regional greenhouse gas initiative (RGGI), or it may entail the creation of an entirely new and separate regional or national cap and trade initiative that includes a 100 percent consumer allocation system.

   Added 2005, No. 168 (Adj. Sess.), § 1; amended 2007, No. 209 (Adj. Sess.), § 3a; 2019, No. 153 (Adj. Sess.), § 3, eff. Sept. 22, 2020.

§ 579. Vehicle emissions labeling program for new motor vehicles.

1. The Secretary of Natural Resources, in consultation with the Commissioner of Motor Vehicles, shall establish, by rule, a vehicle emissions labeling program for new motor vehicles sold or leased in the State with a model year of 2010 or later. The rules adopted under this section shall require automobile manufacturers to install the labels.
2. Vehicle emissions labels under this program shall include the vehicle's emissions score. The label required by subsection (a) of this section and the vehicle score included in the label shall be consistent with the labels and information required by other states, including the California motor vehicle greenhouse gas and smog index label and any revisions thereto. A label that complies with the requirements of the California vehicle labeling program shall be deemed to meet the requirements of this section and the rules adopted thereunder for the content of labels.
3. The vehicle emissions label shall be affixed to the vehicle in a clearly visible location, as set forth by the Secretary of Natural Resources in rule.
4. On or after the effective date of the rules adopted under subsection (a) of this section, no new motor vehicle shall be sold or leased in the State unless a vehicle emissions label that meets the requirements of this section and the rules adopted thereunder is affixed to the vehicle except in the case of a trade of a new motor vehicle by a Vermont dealer, as that term is defined in 23 V.S.A. § 4(8) , with a dealer from another state that does not have a similar labeling law, provided that the motor vehicle involved in the trade is sold within 30 days of the trade.
5. As used in this section, "motor vehicle" means all passenger cars, light duty trucks with a gross vehicle weight of 8,500 pounds or less, and medium duty passenger vehicles with a gross vehicle weight of less than 10,000 pounds that are designed primarily for the transportation of persons.

   Added 2007, No. 55 , § 2, eff. May 29, 2007.

§ 580. 25 by 25 State goal.

1. It is a goal of the State, by the year 2025, to produce 25 percent of the energy consumed within the State through the use of renewable energy sources, particularly from Vermont's farms and forests.
2. By no later than January 15, 2009, the Secretary of Agriculture, Food and Markets, in consultation with the Commissioner of Public Service and the Commissioner of Forests, Parks and Recreation, shall present to the Committees on Agriculture and on Natural Resources and Energy of the General Assembly a plan for attaining this goal. Plan updates shall be presented no less frequently than every three years thereafter, and a progress report shall be due annually on January 15.
3. By no later than January 15, 2009, the Department of Public Service shall present to the legislative committees on natural resources and energy an updated Comprehensive Energy Plan that shall give due consideration to the public engagement process required under 30 V.S.A. § 254 and under 2006 Acts and Resolves No. 208, Sec. 2. By that time, the Department of Public Service shall incorporate plans adopted under this section into the State Comprehensive Energy Plan adopted under 30 V.S.A. § 202b .

   Added 2007, No. 92 (Adj. Sess.), § 5.