The Vermont Statutes Online

Title 30: Public Service

Chapter 082: Communications Union Districts

• § 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.)