The bill H.398 proposes significant amendments to the Vermont Economic Development Authority (VEDA) regulations, focusing on updating definitions and provisions related to eligible facilities and projects. It eliminates the requirement for projects to align with the Vermont Sustainable Jobs Strategy, allowing any industrial, commercial, or agricultural enterprise approved by the Authority to qualify for funding. The bill also introduces eligibility for certain housing projects aimed at employees of businesses, contingent upon approval from the Vermont Housing Finance Agency. Additionally, it broadens the Authority's financial activities to include capital improvements and working capital programs, while repealing outdated definitions and requirements related to mortgage contracts and insurance to streamline operations.

Moreover, the bill modifies the process for bond issuance by the Authority, removing specific findings previously required before issuing bonds and emphasizing the need to ensure that financing does not create state debt, except for special obligations. It expands the Authority's powers to include making loans secured by mortgages or other assets, updates terminology from "mortgagor" to "obligor," and establishes a new Disaster Recovery Loan Fund to assist businesses and agricultural enterprises post-disaster. The bill appropriates $2,000,000 from the General Fund to support this new fund and redefines the Vermont Jobs Fund for various financing purposes. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 10-12