§ 3051. Formation
(a) Two or more towns and cities may elect to form a communications union district for
the delivery of communications services and the operation of a communications plant,
which district shall be a body politic and corporate.
(b) A town or city electing to form a district under this chapter shall submit to the
eligible voters of such municipality a proposition in substantially the following
form: “Shall the Town of ______ enter into a communications union district to be known as ______ , under the provisions of 30 V.S.A. chapter 82?” at an annual or special meeting of such town or city.
(c) Additional towns or cities may be admitted to the district in the manner provided
in section 3082 of this chapter.
(d) As used in this chapter:
(1) “Communications plant” means any and all parts of any communications system owned
by the district, whether using wires, cables, fiber optics, wireless, other technologies,
or a combination of, and used for the purpose of transporting or storing information,
in whatever forms, directions, and media, together with any improvements constructed
or acquired later, and all other facilities, equipment, and appurtenances necessary
or appropriate to such system. However, the term “communications plant” and any regulatory
implications or any restrictions under this chapter regarding a “communications plant”
shall not apply to facilities or portions of any communications facilities intended
for use by, and solely used by, a district member and its own officers and employees
in the operation of municipal departments or systems of which such communications
are merely an ancillary component.
(2) “Communications union district” or “district” means a communications union district
formed under this chapter.
(3) “District member” or “member municipality” means a town or city that elects to form
or join a communications union district under this chapter.
(4) “Governing board” or “board” means the governing board of the communications union
district as established under this chapter. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 432, eff. July 1, 2024.)
§ 3052. District composition
A district formed under this chapter shall be composed of and include all of the lands
and residents within a member municipality, and any other town or city subsequently
admitted to the district as provided in this chapter except for those towns and cities
that withdraw as provided in this chapter. Registered voters in each member municipality
are eligible to vote in all district meetings, but only district member representatives
are eligible to vote in meetings of the district’s governing board. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3053. Creation; duration; noncontestability
(a) Following the organizational meeting called for in section 3060 of this chapter, the
district’s governing board shall cause to be filed with the Office of the Secretary
of State a certificate attesting to the vote conducted under subsection 3051(b) of
this chapter.
(b) A district formed under this chapter shall continue as a body politic and corporate
unless and until dissolved according to the procedures set forth in this chapter.
(c) An action shall not be brought directly or indirectly challenging, questioning, or
in any manner contesting the legality of the formation, or the existence as a body
corporate and politic of any communications union district created under this chapter
after six months from the date of the recording in the office of the Secretary of
State of the certificate required by subsection (a) of this section. An action shall
not be brought directly or indirectly challenging, questioning, or in any manner contesting
the legality or validity of any bonds issued to defray costs of communications plant
improvements approved by the board, after six months from the date upon which the
board voted affirmatively to issue such bonds. This section shall be liberally construed
to affect the legislative purpose to validate and make certain the legal existence
of all communications union districts in this State and the validity of bonds issued
or authorized for communications plant improvements, and to bar every remedy notwithstanding
any defects or irregularities, jurisdictional or otherwise, after expiration of the
six-month period. The provisions of this subsection shall also pertain to financial
contracts directly related to the district’s bonding authority.
(d) To the extent a district constructs communications infrastructure with the intent
of providing communications services, the district shall ensure that any and all losses
from these services, or in the event these services are abandoned or curtailed, any
and all costs associated with the investment in communications infrastructure, are
not borne by the taxpayers of district members. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 433, eff. July 1, 2024.)
§ 3054. District powers
(a) In addition to the powers enumerated in 24 V.S.A. § 4866, and, subject to the limitations and restrictions set forth in section 3056 of this
chapter, a district created under this chapter shall have the power to:
(1) operate, cause to be operated, or contract for the construction, ownership;, management,
financing, and operation of a communications plant for the delivery of communications
services, as provided in 24 V.S.A. chapter 54;
(2) purchase, sell, lease, own, acquire, convey, mortgage, improve, and use real and personal
property in connection with its purpose;
(3) hire and fix the compensation and terms of employment of employees;
(4) sue and be sued;
(5) enter into contracts for any term or duration;
(6) contract with architects, engineers, financial and legal consultants, and others for
professional services;
(7) contract with individuals, corporations, associations, authorities, and agencies for
services and property, including the assumption of the liabilities and assets thereof;
(8) provide communications services for its district members, including the residential
and business locations located therein; and also provide communications services for
such other residential and business locations as its facilities and obligations may
allow, provided such other locations are in a municipality that is contiguous with
the town limits of a district member, and further provided such other locations do
not have access to internet service capable of speeds that meet or exceed the current
speed requirements for funding eligibility under the Connectivity Initiative, section 7515b of this title.
(9) contract with the State of Vermont, the United States of America, or any subdivision
or agency thereof for services, assistance, and joint ventures;
(10) contract with any municipality for the services of any officers or employees of that
municipality useful to it;
(11) promote cooperative arrangements and coordinated action among its members and other
public and private entities;
(12) make recommendations for review and action to its members and other public agencies
that perform functions within the region in which its members are located;
(13) exercise any other powers that are necessary or desirable for dealing with communications
matters of mutual concern and that are exercised or are capable of exercise by any
of its members;
(14) enter into financing agreements as provided by 24 V.S.A. § 1789 and chapter 53, subchapter 2, or other provisions of law authorizing the pledge of
net revenue, or alternative means of financing capital improvements and operations;
(15) establish a budget to provide for the funding thereof out of general revenue of the
district;
(16) appropriate and expend monies;
(17) establish sinking and reserve funds for retiring and securing its obligations;
(18) establish capital reserve funds and make appropriations for communications plant improvements
and the financing;
(19) enact and enforce any and all necessary or desirable bylaws for the orderly conduct
of its affairs for carrying out its communications purpose and for protection of its
communications property;
(20) solicit, accept, and administer gifts, grants, and bequests in trust or otherwise
for its purpose;
(21) exercise all powers incident to a public corporation;
(22) adopt a name under which it shall be known and shall conduct business; and
(23) establish an effective date of its creation.
(b) Before a district may sell any service using a communications plant subject to Public
Utility Commission jurisdiction and for which a certificate of public good is required
under chapter 5 or 13 of this title, it shall obtain a certificate of public good
for such service. Each such certificate of public good shall be nonexclusive and shall
not contain terms or conditions more favorable than those imposed on existing certificate
holders authorized to serve the municipality. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 434, eff. July 1, 2024.)
§ 3055. Communications plant; sites
Each member shall make available for lease to the district one or more sites for a
communications plant or components thereof within such member municipality. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3056. Limitations; taxes; indebtedness
(a) Notwithstanding any grant of authority in this chapter to the contrary, a district
shall not accept funds generated by a member’s taxing or assessment power.
(b) Notwithstanding any grant of authority in this chapter to the contrary, a district
shall not have the power to levy, assess, apportion, or collect any tax upon property
within the district, nor upon any of its members, without specific authorization of
the General Assembly.
(c) Notwithstanding any grant of authority in this chapter to the contrary, every issue
of a district’s notes and bonds shall be payable only out of any revenues or monies
of the district. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3057. Board authority
The legislative power and authority of a district and the administration and the general
supervision of all fiscal, prudential, and governmental affairs thereof shall be vested
in a legislative body known as the governing board, except as specifically provided
otherwise in this chapter. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3058. Board composition
The district governing board shall be composed of one representative from each member
and one or more alternates to serve in the absence of the designated representative. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3059. Appointment
Annually on or before the last Monday in April, the legislative body of each member
shall appoint a representative and one or more alternates to the governing board for
one-year terms. Appointments of representatives and alternates shall be in writing,
signed by the chair of the legislative body of the appointing member, and presented
to the clerk of the district. The legislative body of a member, by majority vote,
may replace its appointed representative or alternate at any time and shall promptly
notify the district clerk of the replacement. Initial appointments shall be made within
60 days following the vote to form a district under subsection 3051(b) of this chapter
and initial terms may be for less than one year. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2019, No. 119 (Adj. Sess.), § 2, eff. June 23, 2020; 2023, No. 85 (Adj. Sess.), § 435, eff. July 1, 2024.)
§ 3060. Organizational meeting
Annually, on the second Tuesday in May following the appointments contemplated in
section 3059 of this chapter or on a date specified in the district’s bylaws, the
board shall hold its organizational meeting. At the meeting, the board shall elect
from among its appointed representatives a chair and a vice chair, each of whom shall
hold office for one year and until a successor is duly elected. The board’s initial
organizational meeting shall be held within 90 days following the vote to form a district
under subsection 3051(b) of this title. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2019, No. 119 (Adj. Sess.), § 3, eff. June 23, 2020; 2023, No. 85 (Adj. Sess.), § 436, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 3, eff. May 6, 2024.)
§ 3061. Quorum
For the purpose of transacting business, the presence of delegates or alternates representing
more than 50 percent of district members shall constitute a quorum. However, a smaller
number may adjourn to another date. Any action adopted by a majority of the votes
cast at a meeting of the board at which a quorum is present shall be the action of
the board, except as otherwise provided in this chapter. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3062. Voting
Each district member’s delegation shall be entitled to cast one vote. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3063. Term
Unless replaced in the manner provided in section 3059 of this chapter, a representative
on the governing board shall hold office until his or her successor is duly appointed.
Any representative or alternate may be reappointed to successive terms without limit. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3064. Vacancy
Any vacancy on the board shall be filled within 30 days after such vacancy occurs
by appointment by the authority that appointed the representative or alternate whose
position has become vacant. An appointee to a vacancy shall serve until the expiration
of the term of the representative or alternate to whose position the appointment was
made and may thereafter be reappointed. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3065. Rules of procedure
Except as otherwise provided by law, or as may be agreed upon by the board, Robert’s
Rules of Order shall govern at all meetings. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3066. Compensation of representatives
Each district member may reimburse its representative to the governing board for expenses
as it determines reasonable, except as provided in section 3072 of this chapter with
respect to district officers. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3067. Officers; bond
(a) The officers of the district shall be the chair and the vice chair of the board, the
clerk of the district, and the treasurer of the district. Prior to assuming their
offices, officers may be required to post bond in such amounts as shall be determined
by resolution of the board. The cost of such bond shall be borne by the district.
(b) The chair shall preside at all meetings of the board and shall make and sign all contracts
on behalf of the district upon approval by the board. The chair shall perform all
duties incident to the position and office as required by the general laws of the
State.
(c) During the absence of or inability of the chair to render or perform his or her duties
or exercise his or her powers, the same shall be performed and exercised by the vice
chair and when so acting, the vice chair shall have all the powers and be subject
to all the responsibilities hereby given to or imposed upon the chair.
(d) During the absence or inability of the vice chair to render or perform his or her
duties or exercise his or her powers, the board shall elect from among its membership
an acting vice chair who shall have the powers and be subject to all the responsibilities
hereby given or imposed upon the vice chair.
(e) Upon the death, disability, resignation, or removal of the chair or vice chair, the
board shall immediately elect a successor to the vacant office until the next annual
meeting. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 437, eff. July 1, 2024.)
§ 3068. Clerk
The clerk of the district shall be appointed by the board and shall serve at its pleasure.
The clerk is not required to be a member of the governing board. The clerk shall have
the exclusive charge and custody of the records of the district and the seal of the
district. The clerk shall record all votes and proceedings of the district, including
district and board meetings, and shall prepare and cause to be posted and published
all warnings of meetings. Following approval by the board, the clerk shall cause the
annual report to be distributed to the legislative bodies of the district members.
The clerk shall prepare and distribute any other reports required by State law and
resolutions or rules of the board. The clerk shall perform all duties and functions
incident to the office of secretary or clerk of a body corporate. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 438, eff. July 1, 2024.)
§ 3069. Treasurer
The treasurer of the district shall be appointed by the board and shall serve at its
pleasure. The treasurer shall not be a member of the governing board. The treasurer
shall have the exclusive charge and custody of the funds of the district and shall
be the disbursing officer of the district. When authorized by the board, the treasurer
may sign, make, or endorse in the name of the district all checks and orders for the
payment of money and pay out and disburse the same and receipt. The treasurer shall
keep a record of every obligation issued and contract entered into by the district
and of every payment thereon. The treasurer shall keep correct books of account of
all the business and transactions of the district and such other books and accounts
as the board may require. The treasurer shall render a statement of the condition
of the finances of the district at each regular meeting of the board and at such other
times as shall be required of the treasurer. The treasurer shall prepare the annual
financial statement and the budget of the district for distribution, upon approval
of the board, to the legislative bodies of district members. The treasurer shall do
and perform all of the duties appertaining to the office of treasurer of a body politic
and corporate. The treasurer may delegate authority to perform any or all of the duties
described in this section, provided such delegation is approved by the board or authorized
in the district’s bylaws, and further provided the treasurer retains accountability
and oversight authority for any such delegations. Upon removal or the treasurer’s
termination from office by virtue of removal or resignation, the treasurer shall immediately
pay over to the successor all of the funds belonging to the district and at the same
time deliver to the successor all official books and papers. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 439, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 4, eff. May 6, 2024.)
§ 3070. Audit
Once the district becomes operational, the board shall cause an audit of the financial
condition of the district to be performed annually by an independent professional
accounting firm. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3071. Committees
The board has authority to establish one or more committees and grant and delegate
to them such powers as it deems necessary. Members of an executive committee shall
serve staggered terms and shall be board members. Membership on other committees established
by the board is not restricted to board members. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3072. Compensation of officers
Officers of the district shall be paid from district funds such compensation or reimbursement
of expenses, or both, as determined by the board. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3073. Recall of officers
An officer may be removed by a two-thirds vote of the board whenever, in its judgment,
the best interests of the district shall be served. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 440, eff. July 1, 2024.)
§ 3074. Fiscal year
The fiscal year of the district shall commence on January 1 and end on December 31
of each year, unless otherwise specified in the district’s bylaws. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 99 (Adj. Sess.), § 5, eff. May 6, 2024.)
§ 3075. Budget
(a) Annually, on or before October 21 or on another date specified in the district’s bylaws,
the board shall approve and cause to be distributed to the legislative body of each
district member for review and comment an annual report of its activities, together
with a financial statement, a proposed district budget for the next fiscal year, and
a forecast presenting anticipated year-end results. The proposed budget shall include
reasonably detailed estimates of:
(1) deficits and surpluses from prior fiscal years;
(2) anticipated expenditures for the administration of the district;
(3) anticipated expenditures for the operation and maintenance of any district communications
plant;
(4) payments due on obligations, long-term contracts, leases, and financing agreements;
(5) payments due to any sinking funds for the retirement of district obligations;
(6) payments due to any capital or financing reserve funds;
(7) anticipated revenues from all sources; and
(8) such other estimates as the board deems necessary to accomplish its purpose.
(b) Coincident with a regular meeting thereof, the board shall hold a public hearing on
or before November 15 of each year or on another date specified in the district’s
bylaws to receive comments from the legislative bodies of district members and hear
all other interested persons regarding the proposed budget. Notice of such hearing
shall be given to the legislative bodies of district members at least 15 days prior
to such hearing. The board shall give consideration to all comments received and make
such changes to the proposed budget as it deems advisable.
(c) Annually, on or before December 15 or on another date specified in the district’s
bylaws, the board shall adopt the budget and appropriate the sums it deems necessary
to meet its obligations and operate and carry out the district’s functions for the
next ensuing fiscal year.
(d) Actions or resolutions of the board for the annual appropriations of any year shall
not cease to be operative at the end of the fiscal year for which they were adopted.
Appropriations made by the board for the various estimates of the budget shall be
expended only for such estimates, but by majority vote of the board the budget may
be amended from time to time to transfer funds between or among such estimates. Any
balance left or unencumbered in any budget estimate, or the amount of any deficit
at the end of the fiscal year, shall be included in and paid out of the operating
budget and appropriations in the next fiscal year. All budget amendments shall be
reported by the district treasurer to the legislative bodies of each district member
within 14 days following the end of the fiscal year.
(e) Financial statements and audit results shall be delivered to the legislative bodies
of each district member within 10 days following delivery to the board. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2015, No. 130 (Adj. Sess.), § 5e, eff. May 25, 2016; 2023, No. 85 (Adj. Sess.), § 441, eff. July 1, 2024; 2023, No. 99 (Adj. Sess.), § 6, eff. May 6, 2024.)
§ 3076. Indebtedness
The board may borrow money through the issuance of notes of the district for the purpose
of paying current expenses of the district. Such notes shall mature within one year,
and may be refunded in the manner provided by law, and shall be payable solely from
the district’s operating revenues. The governing board may borrow money in anticipation
of the receipt of grants-in-aid from any source and any revenues. Such notes shall
mature within one year, but may be renewed as provided by general law. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3077. Pledge of revenues
(a) When the board, at a regular or special meeting called for such purpose, determines
by resolution passed by a vote of a majority of members present and voting that the
public interest or necessity demands communications plant improvements, or a long-term
contract, and that the cost of the same will be too great to be paid out of the ordinary
annual income and revenue of the district, the board may pledge communications plant
net revenues and enter into long-term contracts to provide for such improvements.
A “long-term contract” means an agreement in which the district incurs direct or conditional
obligations for which the costs are too great to be paid out of the ordinary annual
income and revenues of the district, in the judgment of the board. It includes an
agreement authorized under 24 V.S.A. § 1789, wherein performance by the district is conditioned upon periodic appropriations.
The term “communications plant improvements” includes improvements that may be used
for the benefit of the public, whether or not publicly owned or operated.
(b) The pledge of communications plant net revenues, and other obligations allowed by
law, may be authorized for any purpose permitted by this chapter, 24 V.S.A. chapter
53, subchapter 2, and chapter 54, or any other applicable statutes. A communications
plant is declared to be a project within the meaning of 24 V.S.A. § 1821(4). (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3078. Sinking and reserve funds
(a) The board may establish and provide for sinking and reserve funds, however denominated,
for the retirement and security of pledges of communications plant net revenue, or
for long-term contracts. When so established, such funds shall be kept intact and
separate from other monies at the disposal of the district, and shall be accounted
for as a pledged asset for the purpose of retiring or securing such obligations or
contracts. The cost of payments to any sinking or reserve fund shall be included in
the annual budget of the district.
(b) The board shall establish and provide for a capital reserve fund to pay for communications
plant improvements, replacement of worn out buildings and equipment, and planned and
unplanned major repairs in furtherance of the purpose for which the district was created.
Any such capital reserve fund shall be kept in a separate account and invested as
are other public funds and shall be expended for such purposes for which established.
The cost of payments to any capital reserve fund shall be included in the annual budget
of the district. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3079. Service fees
The board may from time to time establish and adjust service, subscription, access,
and utility fees for the purpose of generating revenues from the operation of its
communications plant. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3080. Special meetings
(a) The board may call a special meeting of the district when it deems it necessary or
prudent to do so and shall call a special meeting of the district when action by the
voters is necessary under this chapter. In addition, the board shall call a special
meeting upon receipt of a petition signed by at least five percent of the registered
voters within the district, or upon request of at least 25 percent of district members
evidenced by formal resolutions of the legislative bodies of such members or by petitions
signed by at least five percent of the member’s registered voters. The board may rescind
the call of a special meeting called by it but not a special meeting called as provided
in this subsection. The board may schedule the date of such special meetings to coincide
with the date of annual municipal meetings, primary elections, general elections,
or similar meetings when the electorate within the district members will be voting
on other matters.
(b) At any special meeting of the district, voters of each district member shall cast
their ballots at such polling places within the municipality of their residence as
shall be determined by the board of the district in cooperation with the boards of
civil authority of each district member.
(c) Not less than three nor more than 14 days prior to any special meeting, at least one
public hearing shall be held by the board at which time the issues under consideration
shall be presented and comments received. Notice of such public hearing shall include
the publication of a warning in a newspaper of general circulation in the district
at least once a week, on the same day of the week, for three consecutive weeks, the
last publication not less than five nor more than 10 days before the public hearing.
Such notice may be included in the warning called for in subsection (d) of this section.
(d) The board shall warn a special meeting by filing a notice with the clerk of each district
member and by posting a notice in at least five public places in each municipality
in the district not less than 30 nor more than 40 days before the meeting. In addition,
the warning shall be published in a newspaper of general circulation in the district
once a week on the same day of the week for three consecutive weeks before the meeting,
the last publication to be not less than five nor more than 10 days before the meeting.
(e) The original warning of any special meeting of the district shall be signed by a majority
of the board and shall be filed with the clerk before being posted.
(f) The posted and published warning notification shall include the date, time, place,
and nature of the meeting. It shall, by separate articles, specifically indicate the
business to be transacted and the questions to be voted upon.
(g) The Australian ballot system shall be used at all special meetings of the district
when voting is to take place. Ballots shall be commingled and counted under the supervision
of the district clerk.
(h) All legal voters of the district members shall be legal voters of the district. The
district members shall post and revise checklists in the same manner as for municipal
meetings prior to any district meeting at which there will be voting.
(i) At all special meetings, the provisions of 17 V.S.A. chapter 51 regarding election
officials, voting machines, polling places, absentee voting, process of voting, count
and return of votes, validation, recounts and contest of elections, reconsideration
or rescission of vote, and jurisdiction of courts shall apply except where clearly
inapplicable. The clerk shall perform the functions assigned to the Secretary of State
under that chapter. The Washington Superior Court shall have jurisdiction over petitions
for recounts. Election expenses shall be borne by the district, unless within 30 days
following the date of such resolution there is filed with the clerk of the district
a request to call a special district meeting under this section to consider a proposition
to rescind such resolution. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 442, eff. July 1, 2024.)
§ 3081. Withdrawal of a member municipality
A district member may withdraw from the district upon the terms and conditions specified
in this section:
(1) Prior to the district pledging communications plant net revenues, or entering into
a long-term contract, or contract subject to annual appropriation, a district member
may vote to withdraw in the same manner as the vote for admission to the district.
If a majority of the voters of a district member present and voting at a meeting duly
warned for this purpose votes to withdraw from the district, the vote shall be certified
by the clerk of that municipality and presented to the board. Thereafter, the board
shall give notice to the remaining district members of the vote to withdraw and shall
hold a meeting to determine if it is in the best interests of the district to continue
to exist. Representatives of the district members shall be given an opportunity to
be heard at such meeting together with any other interested persons. After a the meeting,
the board may declare the district dissolved or it may declare that the district shall
continue to exist despite the withdrawal of such member. The membership of the withdrawing
municipality shall terminate after the vote to withdraw.
(2) After the district has pledged communications plant net revenues, or entered into
a long-term contract or contract subject to annual appropriations, a district member
may vote to withdraw in the same manner as the vote for admission to the district. (Added 2015, No. 41, § 20, eff. June 1, 2015; amended 2023, No. 85 (Adj. Sess.), § 443, eff. July 1, 2024.)
§ 3082. Admission of district members
The board may authorize the inclusion of additional district members in the communications
union district upon such terms and conditions as it in its sole discretion shall deem
to be fair, reasonable, and in the best interests of the district. The legislative
body of any nonmember municipality that desires to be admitted to the district shall
make application for admission to the board. The board shall determine the financial,
economic, governance, and operational effects that are likely to occur if such municipality
is admitted and thereafter either grant or deny authority for admission of the petitioning
municipality. If the board grants such authority, it shall also specify any terms
and conditions, including financial obligations, upon which such admission is predicated.
Upon resolution of the board, such applicant municipality shall become and thereafter
be a district member. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3082a. Merger
(a) Authority. Notwithstanding 24 V.S.A. chapter 49, a district may merge with one or more other
districts as provided in this section. Such merger shall include all member municipalities
of each of the merging districts. Section 3053 of this chapter applies to a new combined
district formed pursuant to this section.
(b) Preliminary merger plan.
(1) The merging districts shall prepare a preliminary merger plan. The plan shall include
provisions relating to structure, organization, functions, operation, finance, assets,
rights, liabilities, contracts, consents required by law, or regulation, including
adequate provisions for the satisfaction or assumption of all obligations of the district
members concerned. More specifically, the plan shall include provisions clearly stating
that, upon the effective date of the merger:
(A) all assets of whatever kind, owned, claimed, or held by each district shall become
vested in and become assets owned by the combined district without any further act,
deed, or instrument being necessary; and
(B) the combined district shall assume and be obligated to pay or otherwise perform each
and every lawful obligation, debt, claim, bonded indebtedness, and other liability
of each district without any further act, deed, or instrument being necessary.
(2) Upon approval of the preliminary merger plan by three-quarters vote of a quorum of
the board of each of the merging districts, the notice and hearing requirements of
subsection (c) of this section shall be implemented.
(c) Notice and hearing.
(1) Not less than 45 days prior to the public hearing required by subdivision (2) of this
subsection, copies of the preliminary merger plan shall be distributed to the legislative
bodies of the member municipalities of the merging districts.
(2) A public hearing on the plan shall be held in each merging district not less than
30 days prior to the vote referenced in subsection (d) of this section. Notice of
each hearing shall be distributed by member municipalities by local posting and electronic
communications. In addition, each district shall publish notice in newspapers and
other paid media relevant to its service territory. The last notice shall appear not
later than three days before the final public hearing required by this subdivision.
(3) Not less than 30 days prior to the vote referenced in subsection (d) of this section,
notice of the proposed merger shall be distributed to each known creditor of the merging
districts and such other entities as may be required by law, regulation, or contract.
(d) Vote of approval. Subsequent to the public hearings required by subsection (c) of this section, a joint
committee shall prepare a final merger plan for presentation to the boards of the
merging districts. The plan shall take effect upon approval by two-thirds vote of
a quorum of the board of each of the merging districts.
(e) Organizational meeting. The combined district’s initial organizational meeting shall be held within 90 days
following the final vote to merge required under subsection (d) of this section.
(f) Notice to Secretary of State. The district’s governing board shall notify the Secretary of State of the merger as
provided in subsection 3053(a) of this chapter and shall provide notice to such other
entities as may be required by law. (Added 2023, No. 99 (Adj. Sess.), § 2, eff. May 6, 2024.)
§ 3083. Dissolution
(a) If the board by resolution approved by two-thirds of all the votes entitled to be
cast determines that it is in the best interests of the public, the district members,
and the district that such district be dissolved, and if the district then has no
outstanding obligations under pledges of communications plant net revenue, long-term
contracts, or contracts subject to annual appropriation, or will have no such debt
or obligation upon completion of the plan of dissolution, it shall prepare a plan
of dissolution and thereafter adopt a resolution directing that the question of such
dissolution and the plan of dissolution be submitted to the voters of the district
at a special meeting thereof duly warned for such purpose. If a majority of the voters
of the district present and voting at such special meeting shall vote to dissolve
the district and approve the plan of dissolution, the district shall cease to conduct
its affairs except insofar as may be necessary for the winding up thereof. The board
shall immediately cause a notice of the proposed dissolution to be mailed to each
known creditor of the district and to the Secretary of State and shall proceed to
collect the assets of the district and apply and distribute them in accordance with
the plan of dissolution.
(b) The plan of dissolution shall:
(1) identify and value all unencumbered assets;
(2) identify and value all encumbered assets;
(3) identify all creditors and the nature or amount of all liabilities and obligations;
(4) identify all obligations under long-term contracts and contracts subject to annual
appropriation;
(5) specify the means by which assets of the district shall be liquidated and all liabilities
and obligations paid and discharged, or adequate provision made for the satisfaction
thereof;
(6) specify the means by which any assets remaining after discharge of all liabilities
shall be liquidated if necessary; and
(7) specify that any assets remaining after payment of all liabilities shall be apportioned
and distributed among the district members according to a formula based upon population.
(c) When the plan of dissolution has been implemented, the board shall adopt a resolution
certifying that fact to the district members whereupon the district shall be terminated,
and notice thereof shall be delivered to the Secretary of the Senate and the Clerk
of the House of Representatives in anticipation of confirmation of dissolution by
the General Assembly. (Added 2015, No. 41, § 20, eff. June 1, 2015.)
§ 3084. Confidentiality; legislative intent
(a) The purpose of this section is to clarify that any records or information produced
or acquired by a district that are trade secrets or confidential business information
shall be exempt from public inspection and copying pursuant to 1 V.S.A. § 317(c)(9).
(b) For purposes of this section, “confidential business information” includes the operational
records of any internet service provider under contract with a district for the construction
of a broadband network or to provide broadband service, or both, as well as detailed
information about the district’s deployment plans if public disclosure could put the
district at a competitive disadvantage. Business records of a district carry a presumption
of confidentiality. The exemption and presumption specified in this section shall
not, however, apply to district governance records and information. (Added 2021, No. 71, § 11, eff. June 8, 2021; amended 2023, No. 99 (Adj. Sess.), § 7, eff. May 6, 2024.)
§ 3085. Certificate of good standing
(a) A district may apply to the Secretary of State for a certificate of good standing.
(b) A certificate of good standing shall include:
(1) the official name of the district;
(2) that the district is duly formed pursuant to this chapter;
(3) the date of the district’s formation;
(4) that the fee required by this section has been paid; and
(5) that a plan of dissolution for the district has not been approved pursuant to section
3083 of this chapter.
(c) Subject to any qualification stated in the certificate, a certificate of good standing
issued by the Secretary of State may be:
(1) relied upon as conclusive evidence that the district is in existence and is authorized
to deliver communications services and operate a communications plant pursuant to
this chapter; and
(2) taken as prima facie evidence of the facts stated in the certificate.
(d) A district that applies for a certificate of good standing under this section shall
pay to the Secretary of State a nonrefundable application fee of $25.00. (Added 2023, No. 78, § E.232, eff. July 1, 2023.)