BILL AS INTRODUCED H.129
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H.129 1
Introduced by Representatives Brady of Williston, Emmons of Springfield, 2
and Taylor of Milton 3
Referred to Committee on 4
Date: 5
Subject: Education; State aid for capital construction costs; school construction 6
Statement of purpose of bill as introduced: This bill proposes to establish a 7
new State Aid for School Construction Program within the Agency of 8
Education to provide State debt service subsidy to school districts undertaking 9
eligible school construction projects, with varying amounts of State aid 10
available based on bonus incentive criteria adopted by rule of the Agency. 11
An act relating to the State Aid for School Construction Program 12
It is hereby enacted by the General Assembly of the State of Vermont: 13
Sec. 1. 16 V.S.A. § 3440 is added to read: 14
§ 3440. STATEMENT OF POLICY 15
It is the intent of this chapter to encourage the efficient use of public funds 16
to modernize school infrastructure in alignment with current educational needs. 17
School construction projects supported by this chapter should be developed 18
taking consideration of standards of quality for public schools under section 19
165 of this title and prioritizing cost, geographic accessibility, 21st century 20 BILL AS INTRODUCED H.129
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education facilities standards, statewide enrollment trends, and capacity and 1
scale that support best educational practices. Further, it is the intent of this 2
chapter to encourage the use of existing infrastructure to meet the needs of 3
Vermont students. Joint construction projects between two or more school 4
districts and consolidation of buildings within a district where feasible and 5
educationally appropriate are encouraged. 6
Sec. 2. 16 V.S.A. § 3442 is added to read: 7
§ 3442. STATE AID FOR SCHOOL CONSTRUCTION PROGRAM 8
The Agency of Education shall be responsible for implementing the State 9
Aid for School Construction Program according to the provisions of this 10
chapter. The Agency shall be responsible for: 11
(1) reviewing all preliminary applications for State school construction 12
aid and issuing an approval or denial in accordance with section 3445 of this 13
chapter; 14
(2) adopting rules pursuant to 3 V.S.A. chapter 25 pertaining to school 15
construction and capital outlay, including rules to specify a point prioritization 16
methodology and a bonus incentive structure aligned with the legislative intent 17
expressed in section 3440 of this title; 18
(3) including as part of its budget submitted to the Governor pursuant to 19
subdivision 212(21) of this title its annual school construction funding request; 20 BILL AS INTRODUCED H.129
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(4) developing a prequalification and review process for project delivery 1
consultants and architecture and engineering firms specializing in 2
prekindergarten through grade 12 school design, renovation, or construction 3
and maintaining a list of such prequalified firms and consultants; 4
(5) providing technical assistance and guidance to school districts and 5
supervisory unions on all phases of school capital projects; 6
(6) providing technical advice and assistance, training, and education to 7
school districts, supervisory unions, general contractors, subcontractors, 8
construction or project managers, designers, and other vendors in the planning, 9
maintenance, and establishment of school facility space; 10
(7) maintaining a current list of school construction projects that have 11
received preliminary approval, projects that have received final approval, and 12
the priority points awarded to each project; 13
(8) collecting, maintaining, and making publicly available quarterly 14
progress reports of all ongoing school construction projects that shall include, 15
at a minimum, the costs of the project and the time schedule of the project; 16
(9) recommending policies and procedures designed to reduce 17
borrowing for school construction programs at both State and local levels; 18
(10) conducting a needs survey at least every five years to ascertain the 19
capital construction, reconstruction, maintenance, and other capital needs for 20
all public schools and maintaining such data in a publicly accessible format; 21 BILL AS INTRODUCED H.129
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(11) developing a formal enrollment projection model or using 1
projection models already available; 2
(12) encouraging school districts and supervisory unions to investigate 3
opportunities for the maximum utilization of space in and around the district or 4
supervisory union; 5
(13) collecting and maintaining a clearinghouse of prototypical school 6
plans, as appropriate, that may be consulted by eligible applicants; 7
(14) retaining the services of consultants, as necessary, to effectuate the 8
roles and responsibilities listed within this section; and 9
(15) notwithstanding 2 V.S.A. § 20(d), annually on or before December 10
15, submitting a written report to the General Assembly regarding the status 11
and implementation of the State Aid for School Construction Program, 12
including the data required to be collected pursuant to this section. 13
Sec. 3. 16 V.S.A. § 3443 is added to read: 14
§ 3443. STATE AID FOR SCHOOL CONSTRUCTION ADVISORY 15
BOARD 16
(a) Creation. There is hereby created the State Aid for School Construction 17
Advisory Board, which shall advise the Agency on the implementation of the 18
State Aid for School Construction Program in accordance with the provisions 19
of this chapter, including the adoption of rules, setting of statewide priorities, 20 BILL AS INTRODUCED H.129
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criteria for project approval, and recommendations for project approval and 1
prioritization. 2
(b) Membership. 3
(1) Composition. The Board shall be composed of the following eight 4
members: 5
(A) four members who shall serve as ex officio members: 6
(i) the State Treasurer or designee; 7
(ii) the Commissioner of Buildings and General Services or 8
designee; 9
(iii) the Executive Director of the Vermont Bond Bank or 10
designee; and 11
(iv) the Chair of the State Board of Education or designee; and 12
(B) four members, none of whom shall be a current member of the 13
General Assembly, who shall serve four-year terms as follows: 14
(i) two members, appointed by the Speaker of the House, each of 15
whom shall have expertise in education or construction, real estate, or finance 16
and one of whom shall represent a supervisory union; and 17
(ii) two members, appointed by the Committee on Committees, 18
each of whom shall have expertise in education or construction, real estate, or 19
finance and one of whom shall be an educator. 20
(2) Members with four-year terms. 21 BILL AS INTRODUCED H.129
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(A) A member with a term limit shall serve a term of four years and 1
until a successor is appointed. A term shall begin on January 1 of the year of 2
appointment and run through December 31 of the last year of the term. Terms 3
of these members shall be staggered so that not all terms expire at the same 4
time. 5
(B) A vacancy created before the expiration of a term shall be filled 6
in the same manner as the original appointment for the unexpired portion of the 7
term. 8
(C) A member with a term limit shall not serve more than two 9
consecutive terms. A member appointed to fill a vacancy created before the 10
expiration of a term shall not be deemed to have served a term for the purpose 11
of this subdivision (C). 12
(c) Duties. The Board shall advise the Agency on the implementation of 13
the State Aid for School Construction Program in accordance with the 14
provisions of this chapter, including: 15
(1) rules pertaining to school construction and capital outlay; 16
(2) project priorities; 17
(3) proposed legislation the Board deems desirable or necessary related 18
to the State Aid for School Construction Program, the provisions of this 19
chapter, and any related laws; 20 BILL AS INTRODUCED H.129
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(4) policies and procedures designed to reduce borrowing for school 1
construction programs at both State and local levels; 2
(5) development of a formal enrollment projection model or the 3
consideration of using projection models already available; 4
(6) processes and procedures necessary to apply for, receive, administer, 5
and comply with the conditions and requirements of any grant, gift, 6
appropriation of property, services, or monies; 7
(7) the collection and maintenance of a clearinghouse of prototypical 8
school plans that may be consulted by eligible applicants and recommended 9
incentives to utilize such prototypes; 10
(8) the determination of eligible cost components of projects for funding 11
or reimbursement, including partial or full eligibility for project components 12
for which the benefit is shared between the school and other municipal and 13
community entities; 14
(9) development of a long-term vision for a statewide capital plan in 15
accordance with needs and projected funding; 16
(10) collection and maintenance of data on all public school facilities in 17
the State, including information on size, usage, enrollment, available facility 18
space, and maintenance; 19 BILL AS INTRODUCED H.129
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(11) advising districts on the use of a needs survey to ascertain the 1
capital construction, reconstruction, maintenance, and other capital needs for 2
schools across the State; and 3
(12) encouraging school districts and supervisory unions to investigate 4
opportunities for the maximum utilization of space in and around the district or 5
supervisory union. 6
(d) Meetings. 7
(1) The State Treasurer shall call the first meeting of the Board to occur 8
on or before August 15, 2025. 9
(2) The Board shall select a chair from among its members. 10
(3) A majority of the membership shall constitute a quorum. 11
(4) The Board shall meet not more than six times per year. 12
(e) Assistance. The Board shall have the administrative, technical, and 13
legal assistance of the Agency of Education. 14
(f) Compensation and reimbursement. Members of the Board shall be 15
entitled to per diem compensation and reimbursement of expenses as permitted 16
under 32 V.S.A. § 1010 for not more than six meetings per year. 17
Sec. 4. PROSPECTIVE REPEAL OF STATE AID FOR SCHOOL 18
CONSTRUCTION ADVISORY BOARD 19
16 V.S.A. § 3443 (State Aid for School Construction Advisory Board) is 20
repealed on July 1, 2035. 21 BILL AS INTRODUCED H.129
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Sec. 5. 16 V.S.A. § 3444 is added to read: 1
§ 3444. SCHOOL CONSTRUCTION AID SPECIAL FUND 2
(a) Creation. There is created the School Construction Aid Special Fund, 3
to be administered by the Agency of Education. Monies in the Fund shall be 4
used for the purposes of: 5
(1) awarding aid to school construction projects under section 3445 of 6
this title; 7
(2) awarding grants through the Facilities Master Plan Grant Program 8
established in section 3441 of this title; 9
(3) funding administrative costs of the State Aid for School 10
Construction Program; and 11
(4) awarding emergency aid under section 3445 of this title. 12
(b) Funds. The Fund shall consist of: 13
(1) any amounts transferred or appropriated to it by the General 14
Assembly; and 15
(2) any interest earned by the Fund. 16
Sec. 6. 16 V.S.A. § 3445 is added to read: 17
§ 3445. APPROVAL AND FUNDING OF SCHOOL CONSTRUCTION 18
PROJECTS 19
(a) Construction aid. 20 BILL AS INTRODUCED H.129
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(1) Preliminary application for construction aid. A school district 1
eligible for assistance under section 3447 of this title that intends to construct 2
or purchase a new school, or make extensive additions or alterations to its 3
existing school, and desires to avail itself of State school construction aid shall 4
submit a written preliminary application to the Secretary. A preliminary 5
application shall include information required by the Agency by rule and shall 6
specify the need for and purpose of the project. 7
(2) Approval of preliminary application. 8
(A) When reviewing a preliminary application for approval, the 9
Secretary shall consider: 10
(i) regional educational opportunities and needs, including school 11
building capacities across school district boundaries, and available 12
infrastructure in neighboring communities; 13
(ii) economic efficiencies; 14
(iii) the suitability of an existing school building to continue to 15
meet educational needs; and 16
(iv) statewide educational initiatives. 17
(B) The Secretary may approve a preliminary application if: 18
(i)(I) the project or part of the project fulfills a need occasioned 19
by: 20 BILL AS INTRODUCED H.129
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(aa) conditions that threaten the health or safety of students 1
or employees; 2
(bb) facilities that are inadequate to provide programs 3
required by State or federal law or regulation; 4
(cc) excessive energy use resulting from the design of a 5
building or reliance on fossil fuels or electric space heat; or 6
(dd) deterioration of an existing building; or 7
(II) the project results in consolidation of two or more school 8
buildings and will serve the educational needs of students in a more cost-9
effective and educationally appropriate manner as compared to individual 10
projects constructed separately; 11
(ii) the need addressed by the project cannot reasonably be met by 12
another means; 13
(iii) the proposed type, kind, quality, size, and estimated cost of 14
the project are suitable for the proposed curriculum and meet all legal 15
standards; 16
(iv) the applicant achieves the level of “proficiency” in the school 17
district quality standards regarding facilities management adopted by rule by 18
the Agency; and 19
(v) the applicant has completed a facilities master planning 20
process that: 21 BILL AS INTRODUCED H.129
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(I) engages robust community involvement; 1
(II) considers regional solutions; 2
(III) evaluates environmental contaminants; and 3
(IV) produces a facilities master plan that unites the applicant’s 4
vision statement, educational needs, enrollment projections, renovation needs, 5
and construction projects. 6
(3) Priorities. Following approval of a preliminary application and 7
provided that the district has voted funds or authorized a bond for the total 8
estimated cost of a project, the Agency, with the advice of the State Aid for 9
School Construction Advisory Board, shall assign points to the project as 10
prescribed by rule of the Agency so that the project can be placed on a priority 11
list based on the number of points received. 12
(4) Request for legislative appropriation. The Agency shall submit its 13
annual school construction funding request to the Governor as part of its 14
budget pursuant to subdivision 212(21) of this title. Following submission of 15
the Governor’s recommended budget to the General Assembly pursuant to 16
32 V.S.A. § 306, the House Committee on Education and the Senate 17
Committee on Education shall recommend a total school construction 18
appropriation for the next fiscal year to the General Assembly. 19
(5) Final approval for construction aid. 20 BILL AS INTRODUCED H.129
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(A) Unless approved by the Secretary for good cause in advance of 1
commencement of construction, a school district shall not begin construction 2
before the Secretary approves a final application. A school district may submit 3
a written final application to the Secretary at any time following approval of a 4
preliminary application. 5
(B) The Secretary may approve a final application for a project 6
provided that: 7
(i) the project has received preliminary approval; 8
(ii) the district has voted funds or authorized a bond for the total 9
estimated cost of the project; 10
(iii) the district has made arrangements for project construction 11
supervision by persons competent in the building trades; 12
(iv) the district has provided for construction financing of the 13
project during a period prescribed by the Agency; 14
(v) the project has otherwise met the requirements of this chapter; 15
(vi) if the proposed project includes a playground, the project 16
includes a requirement that the design and construction of playground 17
equipment follow the guidelines set forth in the U.S. Consumer Product Safety 18
Commission Handbook for Public Playground Safety; and 19 BILL AS INTRODUCED H.129
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(vii) if the total estimated cost of the proposed project is less than 1
$50,000.00, no performance bond or irrevocable letter of credit shall be 2
required. 3
(C) The Secretary may provide that a grant for a high school project 4
is conditioned upon the agreement of the recipient to provide high school 5
instruction for any high school pupil living in an area prescribed by the Agency 6
who may elect to attend the school. 7
(D) A district may begin construction upon receipt of final approval. 8
However, a district shall not be reimbursed for debt incurred due to borrowing 9
of funds in anticipation of aid under this section. 10
(6) Award of construction aid. 11
(A) The base amount of an award shall be 20 percent of the eligible 12
debt service cost of a project. Projects are eligible for additional bonus 13
incentives as specified in rule for up to an additional 20 percent of the eligible 14
debt service cost. 15
(B) As used in subdivision (A) of this subdivision (6), “eligible debt 16
service cost” of a project means the product of the lifetime cost of the bond 17
authorized for the project and the ratio of the approved cost of a project to the 18
total cost of the project. 19
(b) Emergency aid. Notwithstanding any other provision of this section, 20
the Secretary may grant aid pursuant to subdivision (a)(6) of this section for a 21 BILL AS INTRODUCED H.129
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project the Secretary deems to be an emergency, up to a maximum total project 1
cost of $100,000.00. 2
Sec. 7. 16 V.S.A. § 3446 is added to read: 3
§ 3446. APPEAL 4
Any municipal corporation as defined in section 3447 of this title aggrieved 5
by an order, allocation, or award of the Agency of Education may, within 30 6
days, appeal to the Superior Court in the county in which the project is located. 7
Sec. 8. TRANSFER OF RULEMAKING AUTHORITY; TRANSFER OF 8
RULES 9
(a) The statutory authority to adopt rules by the State Board of Education 10
pertaining to school construction and capital outlay adopted under 16 V.S.A. 11
§ 3448(e) and 3 V.S.A. chapter 25 is transferred from the State Board of 12
Education to the Agency of Education. 13
(b) All rules pertaining to school construction and capital outlay adopted by 14
the State Board of Education under 3 V.S.A. chapter 25 prior to July 1, 2026 15
shall be deemed the rules of the Agency of Education and remain in effect until 16
amended or repealed by the Agency of Education pursuant to 3 V.S.A. chapter 17
25. 18
(c) The Agency of Education shall provide notice of the transfer to the 19
Secretary of State and the Legislative Committee on Administrative Rules in 20
accordance with 3 V.S.A. § 848(d)(2). 21 BILL AS INTRODUCED H.129
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Sec. 9. EFFECTIVE DATE 1
This act shall take effect on July 1, 2026. 2