Act No. 99 Page 1 of 1
2024
This act summary is provided for the convenience of the public and members of the General Assembly. It
is intended to provide a general summary of the act and may not be exhaustive. It has been prepared by the
staff of the Office of Legislative Counsel without input from members of the General Assembly. It is not
intended to aid in the interpretation of legislation or to serve as a source of legislative intent.
Act No. 99 (S.199). An act relating to mergers and governance of communications union
districts
Subjects: Governance; communications union districts; communications; business
practices; mergers
This act concerns the governance and business practices of communications union
districts (CUDs). First, it allows CUDs to follow new merger procedures specific to them
rather than the merger procedures that otherwise apply to merging municipalities under
Title 24. The primary difference between the two procedures concerns voting. Under the
new procedures, the governing board of each merging CUD may approve the merger,
rather than a majority of the voters in each municipality within each of the merging
districts. The preliminary plan of merger must be approved by three-quarters vote of a
quorum of the board of each of the merging districts. The final merger plan must be
approved by two-thirds vote of a quorum of the board of each of the merging districts.
Second, the act provides a CUD greater flexibility regarding when it must hold its
annual organizational meeting. It allows the specific date to be established in the
district’s bylaws, rather than requiring it to be held on the second Tuesday in May, as
currently specified in statute. In addition, a CUD has greater flexibility to define its fiscal
year and to determine a date upon which its annual report must be approved. The act
allows a district to address these items in its bylaws rather than follow the dates specified
in statute.
Third, the act permits the treasurer to delegate the treasurer’s statutory duties; however
the act further specifies that the treasurer must “retain accountability and oversight
authority” regarding any delegated duties.
Fourth, the act defines “confidential business information” with respect to a CUD for
purposes of determining what information is exempt from disclosure under the Public
Records Act and provides a presumption of confidentiality for such information. More
specifically, “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. The act explicitly states that the exemption and presumption specified in
act do not apply to district governance records and information.
Effective Date: May 6, 2024
VT LEG #377358 v.2
Statutes affected: As Introduced: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084
As Passed By the Senate -- Official: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084
As Passed By the Senate -- Unofficial: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084
As Passed by Both House and Senate -- Official: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084
As Passed by Both House and Senate -- Unofficial: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084
As Enacted: 30-3060, 30-3069, 30-3074, 30-3075, 30-3084