An act relating to the Vermont Economic Development Authority

The definition of 'eligible facility' no longer includes the provision that certain housing projects designed for housing employees of a business may be eligible upon consent of the Vermont Housing Finance Agency.

The repayment period for Authority loans to local development corporations for small business incubator facilities was extended from 10 years to 20 years after the property is occupied.

The Authority's officer structure changed: 'vice chair and treasurer from among its members or staff' became 'vice chair and treasurer other officers from among its members,' removing staff eligibility and adding 'other officers.'

Multiple instances added 'policies, and procedures' alongside existing 'rules, regulations, and policies' language in sections governing the manager's duties and the Authority's general powers.

References to 'digital signature' on bonds were changed to 'electronic signature' in sections 244(b) and 254(c).

The provision authorizing the Authority to make charges against local development corporations to help meet its expenses (section 216(9)) was removed.

The description of independent financing sources in section 263(a) was broadened from 'banks and insurance companies' to 'banks and insurance companies financial institutions or otherwise.'

Throughout subchapter 5 (Direct Mortgage Loans), the term 'mortgagor' is replaced with 'obligor' in sections 261, 262, 263, and 264. This broadens the scope of borrowers beyond those who specifically take out mortgage-secured loans to include any party obligated on a loan, including those secured by other assets.

In section 261(3), 'prior mortgages' is replaced with 'secured loans,' expanding the Authority's power to purchase and make payments on prior obligations beyond just mortgages to include any secured loan protecting an existing Authority loan.

In section 279c(e), the 'development fund' is renamed to 'Vermont Jobs Fund,' aligning the export finance program's excess revenue deposit with the consolidated fund name.

A new subsection (c) is added to the Vermont Jobs Fund section (now 220a), authorizing monies in the Fund to be loaned to the Vermont Agricultural Credit Program to support its lending operations under chapter 16A, establishing a line of credit not to exceed $100,000,000.

The $2,000,000 appropriation from the General Fund to the Agency of Commerce and Community Development for the Disaster Recovery Loan Fund (former Sec. 3) and the July 1, 2025 effective date provision (former Sec. 4) are not present in the enacted version, likely handled through separate legislative action or standard enactment procedures.

The Vermont Jobs Fund section is redesignated from 10 V.S.A. section 234 to section 220a, and its subsections are renumbered accordingly (old d becomes c, old e becomes d, old f becomes e).

Gender-neutral language corrections are made throughout, replacing 'he or she' with 'the individual' and 'his or her' with possessive forms like 'the Secretary's' and 'the Auditor's.'

In section 253(a)(1), the definition of 'municipality' for state authority projects is changed from 'State of Vermont' to 'Authority,' clarifying that the Authority itself (not the State) takes on the role of municipality in these project contexts.

Section 212(6) now allows certain housing projects designed to house employees of a business to qualify as eligible facilities, subject to consent of the Vermont Housing Finance Agency. This expands the types of projects the Authority can finance beyond purely industrial or commercial uses.

Section 213(c) changes who may serve as vice chair and treasurer from 'among its members' to 'from among its members or staff,' allowing non-member staff to hold those officer positions.

A new subsection 216(6) authorizes the Authority to employ employees who may be in the classified system under 3 V.S.A. chapter 13 at the Authority's discretion, and to contract with agents, consultants, legal advisors, and other experts, giving it broader staffing flexibility.

A new subsection 216(9) authorizes the Authority to make charges against local development corporations to help cover expenses incurred under the chapter, including interest charged by the State Treasurer. This creates a new revenue mechanism for the Authority.

Section 231 extends the repayment period for loans to local development corporations for small business incubator facilities from 10 years to 20 years after the property is occupied, giving developers significantly more time to repay.

Throughout the bill, terminology was modernized: 'mortgagor' changed to 'obligor,' 'electronic signature' changed to 'digital signature,' and 'banks and insurance companies' broadened to 'financial institutions or otherwise' in section 263(a).

Section 216(3) removed the phrase 'policies, and procedures' from the list of items covered by regulations relating to applications for financial assistance, narrowing that specific provision slightly.

Removed the exception that allowed housing projects designed for business employees to qualify as eligible facilities with consent of the Vermont Housing Finance Agency. Employee housing is no longer a pathway to eligibility under this chapter.

Extended the repayment period for Authority loans to local development corporations for small business incubator facilities from 10 years to 20 years after the property is occupied.

Added a new subsection (g) to Section 254 allowing bonds issued by the Authority to be secured by mortgage insurance under subchapter 2, with a cap of $2,500,000 in principal per user or related person in any one municipality. This creates a new financing mechanism for bond-backed projects.

Added a new item (15) to Section 216 authorizing the Authority to delegate to loan officers the power to review, approve, and make loans under the chapter, subject to manager approval and as set forth in Authority policies and procedures.

Added explicit voting requirements in Section 213(c): no action is valid unless supported by a majority of members present and voting, and at least five members must vote in favor. This raises the bar for valid Authority actions beyond a simple quorum.

Replaced references to 'digital' signatures with 'electronic' signatures in bond execution provisions (Sections 244(b) and 254(c)), modernizing the language for electronic authentication of bonds.