§ 771. General provisions—Article I
A. Statement of policy. It is the purpose of this compact to increase the educational opportunities within
the states of New Hampshire and Vermont by encouraging the formation of interstate
school districts which will each be a natural social and economic region with adequate
financial resources and a number of pupils sufficient to permit the efficient use
of school facilities within the interstate district and to provide improved instruction.
The state boards of education of New Hampshire and Vermont may formulate and adopt
additional standards consistent with this purpose and with these standards; and the
formation of any interstate school district and the adoption of its articles of agreement
shall be subject to the approval of both state boards as hereinafter set forth.
B. Requirement of Congressional Approval. This compact shall not become effective until approved by the United States Congress.
C. Definitions. The terms used in this compact shall be construed as follows, unless a different meaning
is clearly apparent from the language or context:
a. “Interstate school district” and “interstate district” shall mean a school district
composed of one or more school districts located in the State of New Hampshire associated
under this compact with one or more school districts located in the State of Vermont,
and may include either the elementary schools, the secondary schools, or both.
b. “Member school district” and “member district” shall mean a school district located
either in New Hampshire or Vermont which is included within the boundaries of a proposed
or established interstate school district. In the case of districts located in Vermont,
it shall include city school districts, town school districts, union school districts
and incorporated school districts. Where appropriate, the term “member district clerk”
shall refer to the clerk of the city in which a Vermont school district is located,
the clerk of the town in which a Vermont town school district is located, or the clerk
of an incorporated school district.
c. “Elementary school” shall mean a school which includes all grades from kindergarten
or grade one through not less than grade six nor more than grade eight.
d. “Secondary school” shall mean a school which includes all grades beginning no lower
than grade seven and no higher than grade twelve.
e. “Interstate board” shall refer to the board serving an interstate school district.
f. “New Hampshire board” shall refer to New Hampshire State Board of Education.
g. “Vermont board” shall refer to the Vermont State Board of Education.
h. “Commissioner” shall refer to the New Hampshire Commissioner of Education or the Vermont
Secretary of Education, individually or collectively as appropriate. “State departments
of education” shall refer collectively to the New Hampshire Department of Education
and the Vermont Agency of Education.
i. Where joint action by both state boards is required, each state board shall deliberate
and vote by its own majority, but shall separately reach the same result or take the
same action as the other state board.
j. The terms “professional staff personnel” and “instructional staff personnel” shall
include superintendents, assistant superintendents, administrative assistants, principals,
guidance counselors, special education personnel, school nurses, therapists, teachers,
and other licensed personnel.
k. The term “warrant” or “warning” to mean the same for both states. (Added 1967, No. 243 (Adj. Sess.); amended 1989, No. 118, § 3; 2013, No. 92 (Adj. Sess.), § 93, eff. Feb. 14, 2014.)
§ 772. Procedure for formation of an interstate school district — Article II
A. Creation of Planning Committee. The New Hampshire and Vermont commissioners of education shall have the power, acting
jointly to constitute and discharge one or more interstate school district planning
committees. Each such planning committee shall consist of at least two voters from
each of a group of two or more neighbouring member districts. One of the representatives
from each member district shall be a member of its school board, whose term on the
planning committee shall be concurrent with his or her term as a school board member.
The term of each member of a planning committee who is not also a school board member
shall expire on June thirtieth of the third year following his or her appointment.
The existence of any planning committee may be terminated either by vote of a majority
of its members or by joint action of the commissioners. In forming and appointing
members to an interstate school district planning board, the commissioners shall consider
and take into account recommendations and nominations made by school boards of member
districts. No member of a planning committee shall be disqualified because he or
she is at the same time a member of another planning board or committee created under
the provisions of this compact or under any other provisions of law. Any existing
informal interstate school planning committee may be reconstituted as a formal planning
committee in accordance with the provisions hereof, and its previous deliberations
adopted and ratified by the reorganized formal planning committee. Vacancies on a
planning committee shall be filled by the commissioners acting jointly.
B. Operating Procedures of Planning Committee. Each interstate school district planning committee shall meet in the first instance
at the call of any member, and shall organize by the election of a chairman and clerk-treasurer,
each of whom shall be a resident of a different state. Subsequent meetings may be
called by either officer of the committee. The members of the committee shall serve
without pay. The member districts shall appropriate money on an equal basis at each
annual meeting to meet the expenses of the committee, including the cost of publication
and distribution of reports and advertising. From time to time the commissioners
may add additional members and additional member districts to the committee, and may
remove members and member districts from the committee. An interstate school district
planning committee shall act by majority vote of its membership present and voting.
C. Duties of Interstate School District Planning Committee. It shall be the duty of an interstate school district planning committee, in consultation
with the commissioners and the state departments of education: to study the advisability
of establishing an interstate school district in accordance with the standards set
forth in paragraph A of Article I of this compact, its organization, operation and
control, and the advisability of constructing, maintaining and operating a school
or schools to serve the needs of such interstate district; to estimate the construction
and operating costs thereof; to investigate the methods of financing such school or
schools, and any other matters pertaining to the organization and operation of an
interstate school district; and to submit a report or reports of its findings and
recommendations to the several member districts.
D. Recommendations and Preparation of Articles of Agreement. An interstate school district planning committee may recommend that an interstate
school district composed of all the member districts represented by its membership,
or any specified combination of such member districts, be established. If the planning
committee does recommend the establishment of an interstate school district, it shall
include in its report such recommendation, and shall also prepare and include in its
report proposed articles of agreement for the proposed interstate school district,
which shall be signed by at least a majority of the membership of the planning committee,
which set forth the following:
a. The name of the interstate school district.
b. The member districts which shall be combined to form the proposed interstate school
district.
c. The number, composition, method of selection and terms of office of the interstate
school board, provided that:
(1) The interstate school board shall consist of an odd number of members, not less than
five nor more than fifteen;
(2) The terms of office shall not exceed three years;
(3) Each member district shall be entitled to elect at least one member of the interstate
school board. Each member district shall either vote separately at the interstate
school district meeting by the use of a distinctive ballot, or shall choose its member
or members at any other election at which school officials may be chosen;
(4) The method of election shall provide for the filing of candidacies in advance of election
and for the use of a printed nonpartisan ballot;
(5) Subject to the foregoing, provision may be made for the election of one or more members
at large.
d. The grades for which the interstate school district shall be responsible.
e. The specific properties of member districts to be acquired initially by the interstate
school district and the general location of any proposed new schools to be initially
established or constructed by the interstate school district.
f. The method of apportioning the operating expenses of the interstate school district
among the several member districts, and the time and manner of payments of such shares.
g. The indebtedness of any member district which the interstate district is to assume.
h. The method of apportioning the capital expenses of the interstate school district
among the several member districts, which need not be the same as the method of apportioning
operating expenses, and the time and manner of payment of such shares. Capital expenses
shall include the cost of acquiring land and buildings for school purposes; the construction,
furnishing and equipping of school buildings and facilities; and the payment of the
principal and interest of any indebtedness which is incurred to pay for the same.
i. The manner in which state aid, available under the laws of either New Hampshire or
Vermont, shall be allocated, unless otherwise expressly provided in this compact or
by the laws making such aid available.
j. The method by which the articles of agreement may be amended, which amendments may
include the annexation of territory, or an increase or decrease in the number of grades
for which the interstate district shall be responsible, provided that no amendment
shall be effective until approved by both state boards in the same manner as required
for approval of the original articles of agreement.
k. The date of operating responsibility of the proposed interstate school district and
a proposed program for the assumption of operating responsibility for education by
the proposed interstate school district, and any school construction; which the interstate
school district shall have the power to vary by vote as circumstances may require.
l. Any other matters, not incompatible with law, which the interstate school district
planning committee may consider appropriate to include in the articles of agreement,
including, without limitation:
(1) The method of allocating the cost of transportation between the interstate district
and member districts;
(2) The nomination of individual school directors to serve until the first annual meeting
of the interstate school district.
E. Hearings. If the planning committee recommends the formation of an interstate school district,
it shall hold at least one public hearing on its report and the proposed articles
of agreement within the proposed interstate school district in New Hampshire, and
at least one public hearing thereon within the proposed interstate school district
in Vermont. The planning committee shall give such notice thereof as it may determine
to be reasonable, provided that such notice shall include at least one publication
in a newspaper of general circulation within the proposed interstate school district
not less than 15 days (not counting the date of publication and not counting the date
of the hearing) before the date of the first hearing. Such hearings may be adjourned
from time to time and from place to place. The planning committee may revise the
proposed articles of agreement after the date of the hearings. It shall not be required
to hold further hearings on the revised articles of agreement but may hold one or
more further hearings after notice similar to that required for the first hearings
if the planning committee in its sole discretion determines that the revisions are
so substantial in nature as to require further presentation to the public before submission
to the state boards of education.
F. Approval by State Boards. After the hearings a copy of the proposed articles of agreement, as revised, signed
by a majority of the planning committee, shall be submitted by it to each state board.
The state boards may (a) if they find that the articles of agreement are in accord
with the standards set forth in this compact and in accordance with sound educational
policy, approve the same as submitted, or (b) refer them back to the planning committee
for further study. The planning committee may make additional revisions to the proposed
articles of agreement to conform to the recommendations of the state boards. Further
hearings on the proposed articles of agreement shall not be required unless ordered
by the state boards in their discretion. In exercising such discretion, the state
boards shall take into account whether or not the additional revisions are so substantial
in nature as to require further presentation to the public. If both state boards
find that the articles of agreement as further revised are in accord with the standards
set forth in this compact and in accordance with sound educational policy, they shall
approve the same. After approval by both state boards, each state board shall cause
the articles of agreement to be submitted to the school boards of the several member
districts in each state for acceptance by the member districts as provided in the
following paragraph. At the same time, each state board shall designate the form
of warrant, date, time, place, and period of voting for the special meeting of the
member district to be held in accordance with the following paragraph.
G. Adoption by Member Districts. Upon receipt of written notice from the state board in its state of the approval of
the articles of agreement by both state boards, the school board of each member district
shall cause the articles of agreement to be filed with the member district clerk.
Within ten days after receipt of such notice, the school board shall issue its warrant
for a special meeting of the member district, the warrant to be in the form, and the
meeting to be held at the time and place and in the manner prescribed by the state
board. No approval of the superior court shall be required for such special school
district meeting in New Hampshire. Voting shall be with the use of the check list
by a ballot substantially in the following form:
“Shall the school district accept the provisions of the New Hampshire-Vermont Interstate
School Compact providing for the establishment of an interstate school district, together
with the school districts of ............... and ............... , etc., in accordance with the provisions of the proposed articles of agreement filed
with the school district (town, city or incorporated school district) clerk?”
Yes ( ) No ( )
If the articles of agreement included the nomination of individual school directors,
those nominated from each member district shall be included in the ballot and voted
upon, such election to become effective upon the formation of an interstate school
district.
If a majority of the voters present and voting in a member district vote in the affirmative,
the clerk for such member district shall forthwith send to the state board in its
state a certified copy of the warrant, certificate of posting, and minutes of the
meeting of the district. If the state boards of both states find that a majority
of the voters present and voting in each member district have voted in favor of the
establishment of the interstate school district, they shall issue a joint certificate
to that effect; and such certificate shall be conclusive evidence of the lawful organization
and formation of the interstate school district as of its date of issuance.
H. Resubmission. If the proposed articles of agreement are adopted by one or more of the member districts
but rejected by one or more of the member districts, the state boards may resubmit
them, in the same form as previously submitted, to the rejecting member districts,
in which case the school boards thereof shall resubmit them to the voters in accordance
with paragraph G of this article. An affirmative vote in accordance therewith shall
have the same effect as though the articles of agreement had been adopted in the first
instance. In the alternative, the state boards may either (a) discharge the planning
committee, or (b) refer the articles of agreement back for further consideration to
the same or a reconstituted planning committee, which shall have all of the powers
and duties as the planning committee as originally constituted. (Added 1967, No. 243 (Adj. Sess.).)
§ 773. Powers of interstate school districts—Article III
A. Powers. Each interstate school district shall be a body corporate and politic, with power:
a. To acquire, construct, extend, improve, staff, operate, manage and govern public schools
within its boundaries;
b. To sue and be sued, subject to the limitations of liability hereinafter set forth;
c. To have a seal and alter the same at pleasure;
d. To adopt, maintain and amend bylaws not inconsistent with this compact, and the laws
of the two states;
e. To acquire by purchase, condemnation, lease or otherwise, real and personal property
for the use of its schools;
f. To enter into contracts and incur debts;
g. To borrow money for the purposes hereinafter set forth, and to issue its bonds or
notes therefor;
h. To make contracts with and accept grants and aid from the United States, the State
of New Hampshire, the State of Vermont, any agency or municipality thereof, and private
corporations and individuals for the construction, maintenance, reconstruction, operation
and financing of its schools; and to do any and all things necessary in order to avail
itself of such aid and cooperation;
i. To employ such assistants, agents, servants, and independent contractors as it shall
deem necessary or desirable for its purposes; and
j. To take any other action which is necessary or appropriate in order to exercise any
of the foregoing powers. (Added 1967, No. 243 (Adj. Sess.).)
§ 774. District meetings—Article IV
A. General. Votes of the district shall be taken at a duly warned meeting held at any place in
the district, at which all of the eligible legal voters of the member districts shall
be entitled to vote, except as otherwise provided with respect to the election of
directors.
B. Eligibility of Voters. Any resident who would be eligible to vote at a meeting of a member district being
held at the same time, shall be eligible to vote at a meeting of the interstate district.
The board of civil authority in each Vermont member district and the supervisors of
the check list of each New Hampshire district shall respectively prepare a check list
of eligible voters for each meeting of the interstate district in the same manner,
and they shall have all the same powers and duties with respect to eligibility of
voters in their districts as for a meeting of a member district.
C. Warning of Meetings. A meeting shall be warned by a warrant addressed to the residents of the interstate
school district qualified to vote in district affairs, stating the time and place
of the meeting and the subject matter of the business to be acted upon. The warrant
shall be signed by the clerk and by a majority of the directors. Upon written application
of ten or more voters in the district, presented to the directors or to one of them,
at least 25 days before the day prescribed for an annual meeting, the directors shall
insert in their warrant for such meeting any subject matter specified in such application.
D. Posting and Publication of Warrant. The directors shall cause an attested copy of the warrant to be posted at the place
of meeting, and a like copy at a public place in each member district at least 20
days (not counting the date of posting and the date of meeting) before the date of
the meeting. In addition, the directors shall cause the warrant to be advertised
in a newspaper of general circulation on at least one occasion, such publication to
occur at least ten days (not counting the date of publication and not counting the
date of the meeting) before the date of the meeting. Although no further notice shall
be required, the directors may give such further notice of the meeting as they in
their discretion deem appropriate under the circumstances.
E. Return of Warrant. The warrant with a certificate thereon, verified by oath, stating the time and place
when and where copies of the warrant were posted and published, shall be given to
the clerk of the interstate school district at or before the time of the meeting,
and shall be recorded by him in the records of the interstate school district.
F. Organization Meeting. The commissioners, acting jointly, shall fix a time and place for a special meeting
of the qualified voters within the interstate school district for the purpose of organization,
and shall prepare and issue the warrant for the meeting after consultation with the
interstate school district planning board and the members-elect, if any, of the interstate
school board of directors. Such meeting shall be held within 60 days after the date
of issuance of the certificate of formation, unless the time is further extended by
the joint action of the state boards. At the organization meeting the commissioner
of education of the state where the meeting is held, or his or her designate, shall
preside in the first instance, and the following business shall be transacted:
a. A temporary moderator and a temporary clerk shall be elected from among the qualified
voters who shall serve until a moderator and clerk respectively have been elected
and qualified.
b. A moderator, a clerk, a treasurer, and three auditors shall be elected to serve until
the next annual meeting and thereafter until their successors are elected and qualified.
Unless previously elected, a board of school directors shall be elected to serve until
their successors are elected and qualified.
c. The date for the annual meeting shall be established.
d. Provision shall be made for the payment of any organizational or other expense incurred
on behalf of the district before the organization meeting, including the cost of architects,
surveyors, contractors, attorneys, and educational or other consultants or experts.
e. Any other business, the subject matter of which has been included in the warrant,
and which the voters would have had power to transact at an annual meeting.
G. Annual Meetings. An annual meeting of the district shall be held between January fifteenth and June
first of each year at such time as the interstate district may by vote determine.
Once determined, the date of the annual meeting shall remain fixed until changed by
vote of the interstate district at a subsequent annual or special meeting. At each
annual meeting the following business shall be transacted:
a. Necessary officers shall be elected.
b. Money shall be appropriated for the support of the interstate district schools for
the fiscal year beginning the following July first.
c. Such other business as may properly come before the meeting.
H. Special Meetings. A special meeting of the district shall be held whenever, in the opinion of the directors,
there is occasion therefor, or whenever written application shall have been made by
five percent or more of the voters (based on the check lists as prepared for the last
preceding meeting) setting forth the subject matter upon which such action is desired.
A special meeting may appropriate money without compliance with RSA 33:8 or RSA 197:3
which would otherwise require the approval of the New Hampshire superior court.
I. Certification of Records. The clerk of an interstate school district shall have the power to certify the record
of the votes adopted at an interstate school district meeting to the respective commissioners
and state boards and (where required) for filing with a secretary of state.
J. Method of Voting at School District Meetings. Voting at meetings of interstate school districts shall take place as follows:
a. School Directors. A separate ballot shall be prepared for each member district, listing the candidates
for interstate school director to represent such member district; and any candidates
for interstate school director at large; and the voters of each member district shall
register on a separate ballot their choice for the office of school director or directors.
In the alternative, the articles of agreement may provide for the election of school
directors by one or more of the member districts at an election otherwise held for
the choice of school or other municipal officers.
b. Other Votes. Except as otherwise provided in the articles of agreement or this compact, with respect
to all other votes (1) the voters of the interstate school district shall vote as
one body irrespective of the member districts in which they are resident, and (2)
a simple majority of those present and voting at any duly warned meeting shall carry
the vote. Voting for officers to be elected at any meeting, other than school directors,
shall be by ballot or voice, as the interstate district may determine, either in its
articles of agreement or by a vote of the meeting. (Added 1967, No. 243 (Adj. Sess.).)
§ 775. Officers—Article V
A. Officers: General. The officers of an interstate school district shall be a board of school directors,
a chairman of the board, a vice-chairman of the board, a secretary of the board, a
moderator, a clerk, a treasurer and three auditors. Except as otherwise specifically
provided, they shall be eligible to take office immediately following their election;
they shall serve until the next annual meeting of the interstate district and until
their successors are elected and qualified. Each shall take oath for the faithful
performance of his or her duties before the moderator, or a notary public or a justice
of the peace of the state in which the oath is administered. Their compensation shall
be fixed by vote of the district. No person shall be eligible to any district office
unless he or she is a voter in the district. A custodian, school teacher, principal,
superintendent or other employee of an interstate district acting as such shall not
be eligible to hold office as a school director.
B. Board of Directors.
a. How Chosen. Each member district shall be represented by at least one resident on the board of
school directors of an interstate school district. A member district shall be entitled
to such further representation on the interstate board of school directors as provided
in the articles of agreement as amended from time to time. The articles of agreement
as amended from time to time may provide for school directors at large, as above set
forth. No person shall be disqualified to serve as a member of an interstate board
because he or she is at the same time a member of the school board of a member district.
b. Term. Interstate school directors shall be elected for terms in accordance with the articles
of agreement.
c. Duties of Board of Directors. The board of school directors of an interstate school district shall have and exercise
all of the powers of the district not reserved herein to the voters of the district.
d. Organization. The clerk of the district shall warn a meeting of the board of school directors to
be held within ten days following the date of the annual meeting, for the purpose
of organizing the board, including the election of its officers.
C. Chairman of the Board. The chairman of the board of interstate school directors shall be elected by the interstate
board from among its members at its first meeting following the annual meeting. The
chairman shall preside at the meetings of the board and shall perform such other duties
as the board may assign to him.
D. Vice-Chairman of the Board of Directors. The vice-chairman of the interstate board shall be elected in the same manner as the
chairman. He shall represent a member district in a state other than that represented
by the chairman. He shall preside in the absence of the chairman and shall perform
such other duties as may be assigned to him or her by the interstate board.
E. Secretary of the Board. The secretary of the interstate board shall be elected in the same manner as the chairman.
Instead of electing one of its members, the interstate board may appoint the interstate
district clerk to serve as secretary of the board in addition to his or her other
duties. The secretary of the interstate board (or the interstate district clerk,
if so appointed) shall keep the minutes of its meetings, shall certify its records,
and perform such other duties as may be assigned to him or her by the board.
F. Moderator. The moderator shall preside at the district meetings, regulate the business thereof,
decide questions of order, and make a public declaration of every vote passed. He
may prescribe rules of procedure; but such rules may be altered by the district.
He may administer oaths to district officers in either state.
G. Clerk. The clerk shall keep a true record of all proceedings at each district meeting, shall
certify its records, shall make an attested copy of any records of the district for
any person upon request and tender of reasonable fees therefor, if so appointed, shall
serve as secretary of the board of school directors, and shall perform such other
duties as may be required by custom or law.
H. Treasurer. The treasurer shall have custody of all of the monies belonging to the district and
shall pay out the same only upon the order of the interstate board. He shall keep
a fair and accurate account of all sums received into and paid from the interstate
district treasury, and at the close of each fiscal year he or she shall make a report
to the interstate district, giving a particular account of all receipts and payments
during the year. He shall furnish to the interstate directors, statements from his
or her books and submit his or her books and vouchers to them and to the district
auditors for examination whenever so requested. He or she shall make all returns
called for by laws relating to school districts. Before entering on his or her duties,
the treasurer shall give a bond with sufficient sureties and in such sum as the directors
may require. The treasurer’s term of office is from July 1 to the following June
30.
I. Auditors. At the organization meeting of the district, three auditors shall be chosen, one to
serve for a term of one year, one to serve for a term of two years, and one to serve
for a term of three years. After the expiration of each original term, the successor
shall be chosen for a three year term. At least one auditor shall be a resident of
New Hampshire, and one auditor shall be a resident of Vermont. An interstate district
may vote to employ a certified public accountant to assist the auditors in the performance
of their duties. The auditors shall carefully examine the accounts of the treasurer
and the directors at the close of each fiscal year, and at such other times whenever
necessary, and report to the district whether the same are correctly cast and properly
vouched.
J. Superintendent. The superintendent of schools shall be selected by a majority vote of the board of
school directors of the interstate district with the approval of both commissioners.
K. Vacancies. Any vacancy among the elected officers of the district shall be filled by the interstate
board until the next annual meeting of the district or other election, when a successor
shall be elected to serve out the remainder of the unexpired term, if any. Until
all vacancies on the interstate board are filled, the remaining members shall have
full power to act. (Added 1967, No. 2 43 (Adj. Sess.).)
§ 776. Appropriation and apportionment of funds—Article VI
A. Budget. Before each annual meeting, the interstate board shall prepare a report of expenditures
for the preceding fiscal year, an estimate of expenditures for the current fiscal
year, and a budget for the succeeding fiscal year.
B. Appropriation. The interstate board of directors shall present the budget report of the annual meeting.
The interstate district shall appropriate a sum of money for the support of its schools
and for the discharge of its obligations for the ensuing fiscal year.
C. Apportionment of Appropriation. Subject to the provisions of article VII hereof, the interstate board shall first
apply against such appropriation any income to which the interstate district is entitled,
and shall then apportion the balance among the member districts in accordance with
one of the following formulas as determined by the articles of agreement as amended
from time to time:
a. All of such balance to be apportioned on the basis of the ratio that the fair market
value of the taxable property in each member district bears to that of the entire
interstate district; or
b. All of such balance to be apportioned on the basis that the average daily resident
membership for the preceding fiscal year of each member district bears to that of
the average daily resident membership of the entire interstate school district; or
c. A formula based on any combination of the foregoing factors. The term “fair market
value of taxable property” shall mean the last locally assessed valuation of a member
district in New Hampshire, as last equalized by the New Hampshire state tax commission.
The term “fair market value of taxable property” shall mean the equalized grand list
of a Vermont member district, as determined by the Vermont department of taxes.
Such assessed valuation and grand list may be further adjusted (by elimination of
certain types of taxable property from one or the other or otherwise) in accordance
with the articles of agreement, in order that the fair market value of taxable property
in each state shall be comparable.
“Average daily resident membership” of the interstate district in the first instance
shall be the sum of the average daily resident membership of the member districts
in the grades involved for the preceding fiscal year where no students were enrolled
in the interstate district schools for such preceding fiscal year.
D. Share of New Hampshire Member District. The interstate board shall certify the share of a New Hampshire member district of
the total appropriation to the school board of each member district which shall add
such sum to the amount appropriated by the member district itself for the ensuing
year and raise such sum in the same manner as though the appropriation had been voted
at a school district meeting of the member district. The interstate district shall
not set up its own capital reserve funds; but a New Hampshire member district may
set up a capital reserve fund in accordance with RSA 35, to be turned over to the
interstate district in payment of the New Hampshire member district’s share of any
anticipated obligations.
E. Share of Vermont Member District. The interstate board shall certify the share of a Vermont member district of the total
appropriation to the school board of each member district which shall add such sum
to the amount appropriated by the member district itself for the ensuing year and
raise such sum in the same manner as though the appropriation had been voted at a
school district meeting of the member district. (Added 1967, No. 243 (Adj. Sess.).)
§ 777. Borrowing—Article VII
A. Interstate District Indebtedness. Indebtedness of an interstate district shall be a general obligation of the district
and shall also be a joint and several general obligation of each member district,
except that such obligations of the district and its member districts shall not be
deemed indebtedness of any member district for the purposes of determining its borrowing
capacity under New Hampshire or Vermont law. A member district which withdraws from
an interstate district shall remain liable for indebtedness of the interstate district
which is outstanding at the time of withdrawal and shall be responsible for paying
its share of such indebtedness to the same extent as though it had not been withdrawn.
B. Temporary Borrowing. The interstate board may authorize the borrowing of money by the interstate district
(1) in anticipation of payments of operating and capital expenses by the member districts
to the interstate districts and (2) in anticipation of the issue of bonds or notes
of the interstate district which have been authorized for the purpose of financing
capital projects. Such temporary borrowing shall be evidenced by interest bearing
or discounted notes of the interstate district. The amount of notes issued in any
fiscal year in anticipation of expense payments shall not exceed the amount of such
payments received by the interstate district in the preceding fiscal year. Notes issued
under this paragraph shall be payable within one year in the case of notes under clause
(1) and three years in the case of notes under clause (2) from their respective dates,
but the principal of and interest on notes issued for a shorter period may be renewed
or paid from time to time by the issue of other notes, provided that the period from
the date of an original note to the maturity of any note issued to renew or pay the
same debt shall not exceed the maximum period permitted for the original loan.
C. Borrowing for Capital Projects. An interstate district may incur debt and issue its bonds or notes to finance capital
projects. Such projects may consist of the acquisition or improvement of land and
buildings for school purposes, the construction, reconstruction, alteration, or enlargement
of school buildings and related school facilities, the acquisition of equipment of
a lasting character and the payment of judgments. No interstate district may authorize
indebtedness in excess of ten percent of the total fair market value of taxable property
in its member districts as defined in article VI of this compact. The primary obligation
of the interstate district to pay indebtedness of member districts shall not be considered
indebtedness of the interstate district for the purpose of determining its borrowing
capacity under this paragraph. Bonds or notes issued under this paragraph shall mature
in equal or diminishing installments of principal payable at least annually commencing
no later than two years and ending not later than thirty years after their dates.
D. Authorization Proceedings. An interstate district shall authorize the incurring of debts to finance capital projects
by a majority vote of the district passed at an annual or special district meeting.
Such vote shall be taken by secret ballot after full opportunity for debate, and any
such vote shall be subject to reconsideration and further action by the district at
the same meeting or at an adjourned session thereof. As an alternative, an interstate
district may provide in its articles of agreement that such a vote be conducted by
Australian or official balloting under procedures as set forth in the articles of
agreement, and that such vote be subject to any method of reconsideration, if any,
the interstate district sets forth in the articles of agreement.
E. Sale of Bonds and Notes. Bonds and notes which have been authorized under this article may be issued from time
to time and shall be sold at not less than par and accrued interest at public or private
sale by the chairman of the school board and by the treasurer. Interstate district
bonds and notes shall be signed by the said officers, except that either one of the
two required signatures may be a facsimile. Subject to this compact and the authorizing
vote, they shall be in such form, bear such rates of interest and mature at such times
as the said officers may determine. Bonds shall, but notes need not, bear the seal
of the interstate district, or a facsimile of such seal. Any bonds or notes of the
interstate district which are properly executed by the said officers shall be valid
and binding according to their terms notwithstanding that before the delivery thereof
such officers may have ceased to be officers of the interstate district.
F. Proceeds of Bonds. Any accrued interest received upon delivery of bonds or notes of an interstate district
shall be applied to the payment of the first interest which becomes due thereon.
The other proceeds of the sale of such bonds or notes, other than temporary notes,
including any premiums, may be temporarily invested by the interstate district pending
their expenditure; and such proceeds, including any income derived from the temporary
investment of such proceeds, shall be used to pay the costs of issuing and marketing
the bonds or notes and to meet the operating expenses or capital expenses in accordance
with the purposes for which the bonds or notes were issued or, by proceedings taken
in the manner required for the authorization of such debt, for other purposes for
which such debt could be incurred. No purchaser of any bonds or notes of an interstate
district shall be responsible in any way to see to the application of the proceeds
thereof.
G. State Aid Programs. As used in this paragraph the term “initial aid” shall include New Hampshire and Vermont
financial assistance with respect to a capital project, or the means of financing
a capital project, which is available in connection with construction costs of a capital
project or which is available at the time indebtedness is incurred to finance the
project. Without limiting the generality of the foregoing definition, initial aid
shall specifically include a New Hampshire state guarantee under RSA 195-B with respect
to bonds or notes and Vermont construction aid under chapter 123 of this title. As
used in this paragraph the term “long-term aid” shall include New Hampshire and Vermont
financial assistance which is payable periodically in relation to capital costs incurred
by an interstate district. Without limiting the generality of the foregoing definition,
long-term aid shall specifically include New Hampshire school building aid under RSA
198 and Vermont school building aid under chapter 123 of this title. For the purpose
of applying for, receiving and expending initial aid and long-term aid an interstate
district shall be deemed a native school district by each state, subject to the following
provisions. When an interstate district has appropriated money for a capital project,
the amount appropriated shall be divided into a New Hampshire share and a Vermont
share in accordance with the capital expense apportionment formula in the articles
of agreement as though the total amount appropriated for the project was a capital
expense requiring apportionment in the year the appropriation is made. New Hampshire
initial aid shall be available with respect to the amount of the New Hampshire share
as though it were authorized indebtedness of a New Hampshire cooperative school district.
In the case of a state guarantee of interstate district bonds or notes under RSA 195-B,
the interstate district shall be eligible to apply for and receive an unconditional
state guarantee with respect to an amount of its bonds or notes which does not exceed
50 percent of the amount of the New Hampshire share as determined above. Vermont initial
aid shall be available with respect to the amount of the Vermont share as though it
were funds voted by a Vermont school district. Payments of Vermont initial aid shall
be made to the interstate district, and the amount of any borrowing authorized to
meet the appropriation for the capital project shall be reduced accordingly. New
Hampshire and Vermont long-term aid shall be payable to the interstate district.
The amounts of long-term aid in each year shall be based on the New Hampshire and
Vermont shares of the amount of indebtedness of the interstate district which is payable
in that year and which has been apportioned in accordance with the capital expense
apportionment formula in the articles of agreement. The New Hampshire aid shall be
payable at the rate of forty-five percent, if there are three or less New Hampshire
members in the interstate district, and otherwise it shall be payable as though the
New Hampshire members were a New Hampshire cooperative school district. New Hampshire
and Vermont long-term aid shall be deducted from the total capital expenses for the
fiscal year in which the long-term aid is payable, and the balance of such expenses
shall be apportioned among the member districts. Notwithstanding the foregoing provisions,
New Hampshire and Vermont may at any time change their state school aid programs that
are in existence when this compact takes effect and may establish new programs, and
any legislation for these purposes may specify how such programs shall be applied
with respect to interstate districts. Notwithstanding the foregoing, the respective
amounts of New Hampshire and Vermont initial and long-term aid, with respect to a
capital project of the Dresden School District for which indebtedness is authorized
by a vote of the District after July 1, 1977, shall be initially determined for each
year for each member district by the manner provided in this paragraph and the aid
shall be paid to the Dresden School District, however, the amount of aid for those
capital projects received by the Dresden School District on account of each member
district shall be used by the district to reduce the sums which would otherwise be
required to be raised by taxation within that member district.
H. Tax Exemption. Bonds and notes of an interstate school district shall be exempt from local property
taxes in both states, and the interest or discount thereon and any profit derived
from the disposition thereof shall be exempt from personal income taxes in both states.
I. Notwithstanding paragraph G of this Article, initial and longterm aid may be allocated
among the members of an interstate district other than the Dresden School District
in the manner which is provided in the articles of agreement of that district, or
if not therein provided, in the manner specified in paragraph G for all interstate
districts other than the Dresden School District. (Added 1967, No. 243 (Adj. Sess.); amended 1977, No. 65, §§ 1, 2; 2001, No. 63, § 176a.)
§ 778. Taking over of existing property—Article VIII
A. Power to Acquire Property of Member District. The articles of agreement, or an amendment thereof, may provide for the acquisition
by an interstate district from a member district of all or a part of its existing
plant and equipment.
B. Valuation. The articles of agreement, or the amendment, shall provide for the determination of
the value of the property to be acquired in one or more of the following ways:
a. A valuation set forth in the articles of agreement or the amendment.
b. By appraisal, in which case, one appraiser shall be appointed by each commissioner,
and a third appraiser appointed by the first two appraisers.
C. Reimbursement to Member District. The articles of agreement shall specify the method by which the member district shall
be reimbursed by the interstate district for the property taken over, in one or more
of the following ways:
a. By one lump sum, appropriated, allocated, and raised by the interstate district in
the same manner as an appropriation for operating expenses.
b. In installments over a period of not more than twenty years, each of which is appropriated,
allocated, and raised by the interstate district in the same manner as an appropriation
for operating expenses.
c. By an agreement to assume or reimburse the member district for all principal and interest
on any outstanding indebtedness originally incurred by the member district to finance
the acquisition and improvement of the property, each such installment to be appropriated,
allocated, and raised by the interstate district in the same manner as an appropriation
for operating expenses.
The member district transferring the property shall have the same obligation to pay
to the interstate district its share of the cost of such acquisition, but may offset
its right to reimbursement. (Added 1967, No. 243 (Adj. Sess.).)
§ 779. Amendments to articles of agreement—Article IX
A. Amendments to the articles of agreement shall be adopted in the manner provided in
the articles of agreement, and if no such provision is made in the articles of agreement
then amendments shall be adopted by the affirmative vote of two-thirds of those present
and voting at an interstate district meeting, except that:
a. If the amendment proposes the addition of a new member district, the amendment shall
be adopted in the same manner provided for the adoption of the original articles of
agreement, provided that the planning committee shall consist of all of the members
of the interstate district board of directors and all of the members of the school
board of the proposed new member district or districts, and provided that the amendment
shall be submitted to the voters of the interstate district, the affirmative vote
of two-thirds of those present and voting at an interstate district meeting being
required for approval of the amendment. The articles of agreement together with the
proposed amendment shall then be submitted to the voters of the proposed new member
district or districts, and an affirmative vote of a simple majority of those present
and voting at each district meeting shall be required for approval of the amendment.
b. No amendment to the articles of agreement may impair the rights of bond or note holders
or the power of the interstate district to procure the means for their payment.
c. Amendments to the articles of agreement of the Dresden School District shall be adopted
in the following manner: (1) an amendment shall be initially approved upon the affirmative
vote of a simple majority of those voters of the Dresden School District who are present
and voting at a meeting called for such purpose, (2) the amendment initially approved
by the voters of the Dresden School District shall become final and effective upon
the expiration of thirty days after the date of that vote, unless a petition is duly
filed within that thirty day period and the amendment is subsequently not approved
by the voters of a member district in accordance with the procedure specified in clause
(3), (3) if a petition, valid under applicable state law, is filed before the expiration
of that thirty-day period with the clerk of any school district which is a member
of the Dresden School District, which petition requires the calling of a special meeting
of that member district for the purpose of considering the approval of the amendment
initially adopted by the voters of the Dresden School District, then the board of
school directors of that member district shall thereupon call a special meeting of
that district for that purpose, (4) if the amendment as initially approved by the
voters of the Dresden School District is approved by more than forty percent of the
voters present and voting at the meeting of each member district in which a petition
was filed under this section, then the amendment as initially adopted shall become
final and effective upon the vote of that member district last to vote. If the amendment
as initially approved by the voters of the Dresden School District is not so approved
by more than forty percent of the voters present and voting at the meeting of any
one member district, then the amendment shall be null and void and of no effect. (Added 1967, No. 243 (Adj. Sess.); amended 1977, No. 65, § 3.)
§ 780. Applicability of New Hampshire laws—Article X
A. General School Laws. With respect to the operation and maintenance of any school of the district located
in New Hampshire, the provisions of New Hampshire law shall apply except as otherwise
provided in this compact and except that the powers and duties of the school board
shall be exercised and discharged by the interstate board and the powers and duties
of the union superintendent shall be exercised and discharged by the interstate district
superintendent.
B. New Hampshire State Aid. A New Hampshire school district shall be entitled to receive an amount of state aid
for operating expenditures as though its share of the interstate district’s expenses
were the expenses of the New Hampshire member district, and as though the New Hampshire
member district pupils attending the interstate school were attending a New Hampshire
cooperative school district’s school. The state aid shall be paid to the New Hampshire
member school district to reduce the sums which would otherwise be required to be
raised by taxation within the member district.
C. Continued Existence of the New Hampshire Member School District. A New Hampshire member school district shall continue in existence, and shall have
all of the powers and be subject to all of the obligations imposed by law and not
herein delegated to the interstate district. If the interstate district incorporates
only a part of the schools in the member school district, then the school board of
the member school district shall continue in existence and it shall have all of the
powers and be subject to all of the obligations imposed by law on it and not herein
delegated to the district. However, if all of the schools in the member school district
are incorporated into the interstate school district, then the member or members of
the interstate board representing the member district shall have all of the powers
and be subject to all of the obligations imposed by law on the members of a school
board for the member district and not herein delegated to the interstate district.
The New Hampshire member school district shall remain liable on its existing indebtedness;
and the interstate school district shall not become liable therefor, unless the indebtedness
is specifically assumed in accordance with the articles of agreement. Any trust funds
or capital reserve funds and any property not taken over by the interstate district
shall be retained by the New Hampshire member district and held or disposed of according
to law. If all of the schools in a member district are incorporated into an interstate
district, then no annual meeting of the member district shall be required unless the
members of the interstate board from the member district shall determine that there
is occasion for such an annual meeting.
D. Suit and Service of Process in New Hampshire. The courts of New Hampshire shall have the same jurisdiction over the district as
though a New Hampshire member district were a party instead of the interstate district.
The service necessary to institute suit in New Hampshire shall be made on the district
by leaving a copy of the writ or other proceedings in hand or at the last and usual
place of abode of one of the directors who reside in New Hampshire, and by mailing
a like copy to the clerk and to one other director by certified mail with return receipt
requested.
E. Employment. Each employee of an interstate district assigned to a school located in New Hampshire
shall be considered an employee of a New Hampshire school district for the purpose
of the New Hampshire teachers’ retirement system, the New Hampshire state employees’
retirement system, the New Hampshire workers’ compensation law and any other law relating
to the regulation of employment or the provision of benefits for employees of New
Hampshire school districts except as follows:
1. A teacher in a New Hampshire member district may elect to remain a member of the New
Hampshire teachers’ retirement system, even though assigned to teach in an interstate
school in Vermont.
2. Employees of interstate districts designated as professional or instructional staff
members, as defined in article I hereof, may elect to participate in the teachers’
retirement system of either the State of New Hampshire or the State of Vermont but
in no case will they participate in both retirement systems simultaneously.
3. It shall be the duty of the superintendent in an interstate district to: (a) advise
teachers and other professional staff employees contracted for the district about
the terms of the contract and the policies and procedure of the retirement systems;
(b) see that each teacher or professional staff employee selects the retirement system
of his or her choice at the time his or her contract is signed; (c) provide the commissioners
of education in New Hampshire and in Vermont with the names and other pertinent information
regarding each staff member under his or her jurisdiction so that each may be enrolled
in the retirement system of his or her preference. (Added 1967, No. 243 (Adj. Sess.); amended 1981, No. 185 (Adj. Sess.), § 1.)
§ 781. Applicability of Vermont laws—Article XI
A. General School Laws. With respect to the operation and maintenance of any school of the district located
in Vermont, the provisions of Vermont law shall apply except as otherwise provided
in this compact and except that the powers and duties of the school board shall be
exercised and discharged by the interstate board and the powers and duties of the
union superintendent shall be exercised and discharged by the interstate district
superintendent.
B. Vermont State Aid. A Vermont school district shall be entitled to receive such amount of State aid for
operating expenditures as though its share of the interstate district’s expenses were
the expenses of the Vermont member district, and as though the Vermont member district
pupils attending the interstate schools were attending a Vermont union school district’s
schools. Such State aid shall be paid to the Vermont member school district to reduce
the sums which would otherwise be required to be raised by taxation within the member
district.
C. Continued Existence of Vermont Member School District. A Vermont member school district shall continue in existence, and shall have all of
the powers and be subject to all of the obligations imposed by law and not herein
delegated to the interstate district. If the interstate district incorporates only
a part of the schools in the member school district, then the school board of the
member school district shall continue in existence and it shall have all of the powers
and be subject to all of the obligations imposed by law on it and not herein delegated
to the district. However, if all of the schools in the member school district are
incorporated into the interstate school district, then the member or members of the
interstate board representing the member district shall have all of the powers and
be subject to all of the obligations imposed by law on the members of a school board
for the member district and not herein delegated to the interstate district. The
Vermont member school district shall remain liable on its existing indebtedness; and
the interstate school district shall not become liable therefor. Any trust funds
and any property not taken over shall be retained by the Vermont member school district
and held or disposed of according to law.
D. Suit and Service of Process in Vermont. The courts of Vermont shall have the same jurisdiction over the districts as though
a Vermont member district were a party instead of the interstate district. The service
necessary to institute suit in Vermont shall be made on the district by serving one
of the directors who resides in Vermont, and by mailing a like copy to the clerk and
to one other director by certified mail with return receipt requested.
E. Employment. Each employee of an interstate district assigned to a school located in Vermont shall
be considered an employee of a Vermont school district for the purpose of the State
Teachers’ Retirement System of Vermont, the State Employees’ Retirement System, the
Vermont workers’ compensation law, and any other law relating to the regulation of
employment or the provision of benefits for employees of Vermont school districts
except as follows:
1. A teacher in a Vermont member district may elect to remain a member of the State Teachers’
Retirement System of Vermont, even though assigned to teach in an interstate school
in New Hampshire.
2. Employees of interstate districts designated as professional or instructional staff
members, as defined in article I hereof, may elect to participate in the teachers’
retirement system of either the State of Vermont or the State of New Hampshire but
in no case will they participate in both retirement systems simultaneously.
3. It shall be the duty of the superintendent in an interstate district to: (a) advise
teachers and other professional staff employees contracted for the district about
the terms of the contract and the policies and procedures of the retirement system;
(b) see that each teacher or professional staff employee selects the retirement system
of his choice at the time his contract is signed; (c) provide the commissioners of
education in New Hampshire and in Vermont with the names and other pertinent information
regarding each staff member under his jurisdiction so that each may be enrolled in
the retirement system of his preference. (Added 1967, No. 243 (Adj. Sess.); amended 1971, No. 185 (Adj. Sess.), § 183, eff. March 29, 1972; 1981, No. 165 (Adj. Sess.), § 1.)
§ 782. Adoption of compact by Dresden School District—Article XII
The Dresden School District, otherwise known as the Hanover-Norwich Interstate School
District, authorized by New Hampshire laws of 1961, chapter 116, and by the laws of
Vermont, is hereby authorized to adopt the provisions of this compact and to become
an interstate school district within the meaning hereof, upon the following conditions
and subject to the following limitations:
a. Articles of agreement shall be prepared and signed by a majority of the directors
of the interstate school district.
b. The articles of agreement shall be submitted to an annual or special meeting of the
Dresden district for adoption.
c. An affirmative vote of two-thirds of those present and voting shall be required for
adoption.
d. Nothing contained therein, or in this compact, as it affects the Dresden School District
shall affect adversely the rights of the holders of any bonds or other evidences of
indebtedness then outstanding, or the rights of the district to procure the means
for payment thereof previously authorized.
e. The corporate existence of the Dresden School District shall not be terminated by
such adoption of articles of amendment, but shall be deemed to be so amended that
it shall thereafter be governed by the terms of this compact. (Added 1967, No. 243 (Adj. Sess.).)
§ 783. Miscellaneous provisions—Article XIII
A. Studies. Insofar as practicable, the studies required by the laws of both states shall be offered
in an interstate school district.
B. Textbooks. Textbooks and scholar’s supplies shall be provided at the expense of the interstate
district for pupils attending its schools.
C. Transportation. The allocation of the cost of transportation in an interstate school district, as
between the interstate district and the member districts, shall be determined by the
articles of agreement.
D. Location of Schoolhouses. In any case where a new schoolhouse or other school facility is to be constructed
or acquired, the interstate board shall first determine whether it shall be located
in New Hampshire or in Vermont. If it is to be located in New Hampshire, RSA 199,
relating to schoolhouses, shall apply. If it is to be located in Vermont, the Vermont
law relating to schoolhouses shall apply.
E. Fiscal Year. The fiscal year of each interstate district shall begin on July first of each year
and end on June thirtieth of the following year.
F. Immunity from Tort Liability. Notwithstanding the fact that an interstate district may derive income from operating
profit, fees, rentals, and other services, it shall be immune from suit and from liability
for injury to persons or property and for other torts caused by it or its agents,
servants or independent contractors, except insofar as it may have undertaken such
liability under RSA 281:7 relating to workers’ compensation, or RSA 412:3 relating
to the procurement of liability insurance by a governmental agency and except insofar
as it may have undertaken such liability under 21 V.S.A. § 621 relating to workers’ compensation or 29 V.S.A. § 1403 relating to the procurement of liability insurance by a governmental agency.
G. Administrative Agreement Between Commissioners of Education. The commissioners of education of New Hampshire and Vermont may enter into one or
more administrative agreements prescribing the relationship between the interstate
districts, member districts, and each of the two state departments of education, in
which any conflicts between the two states in procedure, regulations, and administrative
practices may be resolved.
H. Amendments. Neither state shall amend its legislation or any agreement authorized thereby without
the consent of the other in such manner as to substantially adversely affect the rights
of the other state or its people hereunder, or as to substantially impair the rights
of the holders of any bonds or notes or other evidences of indebtedness then outstanding
or the rights of an interstate school district to procure the means for payment thereof.
Subject to the foregoing, any reference herein to other statutes of either state shall
refer to such statute as it may be amended or revised from time to time.
I. Separability. If any of the provisions of this compact, or legislation enabling the same, shall
be held invalid or unconstitutional in relation to any of the applications thereof,
such invalidity or unconstitutionality shall not affect other applications thereof
or other provisions thereof; and to this end the provisions of this compact are declared
to be severable.
J. Inconsistency of Language. The validity of this compact shall not be affected by any insubstantial differences
in its form or language as adopted by the two states. (Added 1967, No. 243 (Adj. Sess.); amended 1981, No. 165 (Adj. Sess.), § 1.)
§ 784. Effective date—Article XIV
This compact shall become effective when passed by the Vermont General Assembly, signed
by the Governor and approved by the United States Congress. (Added 1967, No. 243 (Adj. Sess.).)