19 V.S.A. § 15: Changes in the State highway system

(a) Except as provided in subsection (b) of this section, highways may be added to or deleted from the State highway system by:

(1) an act of the General Assembly; or

(2) a proposal by the Agency that is accepted by the legislative body of the affected municipality and approved by an act of the General Assembly.

(b) Upon entering into an agreement with the affected municipality, the Secretary may relinquish to municipal control segments of State highway rights-of-way that have been replaced by new construction and are no longer needed as part of the State highway system. Upon their relinquishment to municipal control, the segments shall become class 3 town highways, and may be reclassified by the municipality in accordance with chapter 7 of this title.