Bill S.39 proposes the creation of a State Aid for School Construction Program within Vermont's Agency of Education, aimed at providing state debt service subsidies to school districts for eligible construction projects. The bill introduces new legal provisions that focus on the efficient use of public funds to modernize school infrastructure, promote joint construction efforts, and prioritize educational needs. It outlines the responsibilities of the Agency of Education, including application reviews, rule adoption, and technical assistance, while establishing a State Aid for School Construction Advisory Board to guide program implementation. Additionally, a School Construction Aid Special Fund will be created to support the program, with the Advisory Board set to be repealed on July 1, 2035.

The bill also sets forth new regulations for school construction, requiring school districts to obtain final approval from the Secretary before starting projects, which includes preliminary approval and supervision by qualified personnel. It mandates adherence to safety guidelines for playgrounds and specifies that districts can only begin construction after receiving final approval, with no reimbursement for debts incurred prior to aid. An appeals process is introduced for municipal corporations dissatisfied with Agency decisions, allowing appeals to the Superior Court within 30 days. Furthermore, the rulemaking authority for school construction is transferred from the State Board of Education to the Agency of Education, with existing rules remaining in effect until modified. The act is scheduled to take effect on July 1, 2026.