The Vermont Statutes Online

Title 10: Conservation and Development

Chapter 001: Economic Development

• § 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 Repealed. 2009, No. 156 (Adj.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 Repealed. 2011, No. 162 (Adj.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

  (a) 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.

  (b) 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.

  (c) 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.

  (d) [Repealed.] (Added 2009, No. 54, § 4, eff. June 1, 2009; amended 2015, No. 11, § 2.)

• § 4. New relocating employee incentives

  (a) 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.

  (b) 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:

  (A) the average annual unemployment rate in the labor market area exceeds the average annual unemployment rate in the State; or

  (B) the average annual wage in the State exceeds the annual average wage in the labor market area.

  (c) 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) adopt procedures to initially approve an applicant for a grant after verifying a relocating employee’s eligibility and to make final payment of a grant after verifying that the relocating employee has completed relocation to this State; and

  (4) adopt measurable goals, performance measures, and an audit strategy to assess the utilization and performance of the program.

  (d) Annually, on or before January 15, 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.

  (e) 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:

  (A)(i) On or after July 1, 2021:

  (I) the individual becomes a full-time resident of this State;

  (II) 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; and

  (III) 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

  (ii) On or after February 1, 2022:

  (I) the individual becomes a full-time resident of this State; and

  (II) 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.

  (B) The individual receives gross salary or wages that equal or exceed the Vermont livable wage rate calculated pursuant to 2 V.S.A. § 526.

  (C) The individual is subject to Vermont income tax. (Added 2021, No. 51, § 2; amended 2021, No. 183 (Adj. Sess.), § 47a, eff. July 1, 2022.)

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 Repealed. 1991, No. 145 (Adj.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

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

  (a) 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.

  (b) 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.

  (c) 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.

  (d) 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

  (a) 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.

  (b) 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

  (a) 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.

  (b) Membership.

  (1) The Advisory Committee shall be composed of six members as follows:

  (A) the State Treasurer or designee;

  (B) the Chief Executive Officer of the Vermont Economic Development Authority or designee;

  (C) the Chief Executive Officer of the Vermont Student Assistance Corporation or designee;

  (D) the Executive Director of the Vermont Housing Finance Agency or designee;

  (E) the Director of the Municipal Bond Bank or designee; and

  (F) 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.

  (c) 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.

  (d) 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.

  (e) 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]

• §§ 15, 16. Repealed. 2009, No. 135 (Adj. Sess.), § 26(3)(A).

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

  (a) 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.

  (b) 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.

  (c) 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.

  (d) 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.

  (e) 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

  (a) 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.

  (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.

  (c) 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.

  (d) 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.)