Act No. 171 Page 1 of 5
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. 171 (H.875). An act relating to the State Ethics Commission and the State Code of
Ethics
Subjects: Executive; governmental ethics; State Ethics Commission; State Code of
Ethics
This act accomplishes three broad items: (1) modifies financial disclosure
requirements for certain elected officers both running for and holding office and adds
officials must file those disclosures; (2) expands the powers of the State Ethics
Commission (the Commission), enabling it to investigate, hold hearings, and to issue
nonbinding warnings, reprimands, and make nonbinding recommendations; and
(3) creates a uniform Municipal Code of Ethics.
Candidate and In-Office Financial Disclosure Requirements
Sec. 1 amends 17 V.S.A. § 2414 (candidates for State and legislative office;
disclosure form) requiring candidates for county offices to submit financial disclosure
forms in addition to candidates for State offices and the General Assembly. Here,
“county office” means assistant judge of the Superior Court, high bailiff, judge of
Probate, sheriff, and State’s Attorney. Candidates will now have to include in their
financial disclosures certain information from the prior 12 months including sources of
personal income of more than $5,000 from an employer, certain business with the
State if self-employed, membership and position on boards and commissions, loans
that are not commercially reasonable, a description—but not amount—of controlled
investments valued at $25,000.00 or more, and the full name of the candidate’s spouse
or domestic partner. This section will take effect on January 1, 2026.
Sec. 2 amends 3 V.S.A. § 1201 (definitions) by migrating the definitions of
“conflict of interest” and “public servant” from other sections in the chapter. County
officers (individuals holding the office of high bailiff, sheriff, or State’s Attorney) and
State officers’ deputies (deputies of the Treasurer, Secretary of State, Auditor of
Accounts, and Attorney General, in addition agency secretaries and deputies and
department commissioners and deputies) will now have to file financial disclosures.
Sec. 2a repeals 24 V.S.A. § 314 (sheriffs; annual disclosure), the now-redundant
disclosure requirements for only sheriffs.
Sec. 3 amends 3 V.S.A. § 1202 (State Code of Ethics; applicability) by migrating
the definition of “public servants” to section § 1201.
Sec. 4 amends 3 V.S.A. § 1203 (conflict of interest; appearance of conflict of
interest) by migrating the definition of “conflict of interest” to section § 1201.
Sec. 5 amends 3 V.S.A. § 1211 (Executive officers; annual disclosure) to require
the same additional information to be disclosed for in-office Executive officers and
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county officers as candidates for those offices in Sec. 1, except “county office,” here,
means the high bailiff and State’s Attorney.
Sec. 6 adds a new section, 17 V.S.A. § 2415 (failure to file; penalties), regarding
penalties for candidates for State, county, and legislative offices who do not properly
file their financial disclosures, amounting to $10.00 for each day of delinquency, but
not to exceed $1,000.00 total.
Expansion of State Ethics Commission’s Powers
Sec. 7 amends 3 V.S.A. § 1221 (State Ethics Commission) subsection (a) to
empower the State Ethics Commission to independently investigate and hold hearings
regarding ethics complaints. This section will take effect on September 1, 2025.
Sec. 8 renames 3 V.S.A. § 1222 (Commission member prohibited conduct). This
section will take effect on September 1, 2025.
Sec. 9 renames and amends 3 V.S.A. § 1223 (procedure for accepting and referring
complaints). The Commission will now be able to receive and refer complaints made
regarding violations of the Municipal Code of Ethics. This section will also require
any entity receiving a referred complaint—excluding municipalities—to consult with
the Commission regarding the application of the State Code of Ethics to facts
presented in the complaint. This section will take effect on September 1, 2025.
Sec. 10 adds a new section, 3 V.S.A. § 1227 (investigations). It enables the
Commission to investigate alleged unethical conduct occurring within the prior two
years, with or without receiving a complaint. Investigations must conclude within six
months and may result in an “investigation report” and subsequent Commission
hearing if there is a reasonable basis to believe that the public servant’s conduct
constitutes an unethical violation. Investigation and subsequent hearings may only be
initiated by a majority of the Commission who have not recused themselves. This
section will take effect on September 1, 2025.
Sec. 11 adds a new section, 3 V.S.A. § 1228 (hearings before the Commission).
This enables the Commission to hold public hearings for the purpose of gathering
evidence and testimony and making determinations. Both the public servant and any
complainant will be afforded an opportunity to be heard at the hearing, present
evidence, respond to evidence, and argue on all issues related to the alleged unethical
misconduct. This section will take effect on September 1, 2025.
Sec. 12 adds a new section, 3 V.S.A. § 1229 (warnings; reprimands; recommended
actions; agreements). This enables the Commission to issue warnings, reprimands,
and recommended actions within 30 days after the last hearing, unless the Commission
extends for good cause or pursuant to an agreement made between the Commission
and the public servant. The Commission may enter into a “resolution agreement” with
a public servant at any point in time before or during proceedings, which will pause
any pending deadlines but require a three-month check-back to ensure compliance.
This section will take effect on September 1, 2025.
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Sec. 13 adds a new section, 3 V.S.A. § 1230 (procedure; rulemaking). This directs
the Commission to adopt rules regarding procedural and evidentiary aspects of the
Commission’s investigations and hearings. Two-thirds of the Commission’s members
present and voting may waive the application of a rule. It also grants the Commission,
the Executive Director, and the Commission’s legal counsel and investigators the
power to issue subpoenas and administer oaths in connection with any investigation or
hearing; provided, however, the Commission shall first request voluntary cooperation
before issuing a subpoena, except in cases where there is reasonable suspicion that
materials will not be produced in a timely manner. This section will take effect on
July 1, 2025.
Sec. 14 adds a new section, 3 V.S.A. § 1231 (record; confidentiality). Public
records relating to the Commission’s handling of complaints, alleged unethical
conduct, investigations, and proceedings are exempt from the Public Records Act and
shall be kept confidential, except: (1) investigation reports a hearing is found to be
warranted; (2) investigation reports relating to alleged unethical conduct determined
to not warrant a hearing, if requested by the public servant; (3) evidence produced in
the open and public portions of Commission hearings; (4) any warnings, reprimands,
and recommendations issued by the Commission; (5) any summary of executed
resolution agreements; and (6) any records, as determined by the Commission, that
support a warning, reprimand, recommendation, or summary of an executed resolution
agreement. This section will take effect on September 1, 2025.
Sec. 15 amends 3 V.S.A. § 1221 (State Ethics Commission) a second time to
expand its membership from five to seven members, to include an additional two
members, who shall be a former municipal officers. One to be appointed by the
Speaker of the House, the other to be appointed by the Senate Committee on
Committees.
Sec. 16 removes the requirement that the Commission’s Executive Director be part-
time. This permits the position to become full-time in the future if funds are
appropriated to do so. The position will remain part-time for the time being.
Sec. 18 amends 3 V.S.A. § 1221(e), regarding meetings of the Ethics Commission,
to correct a statutory cross-reference.
Sec. 19 renames 3 V.S.A. § 1226 (ethics data collection; Commission reports) and
requires those entities to which the Commission refers complaints to report back
annually with aggregate data on ethics complaints not submitted to the Commission,
with the complaints separated by topic, and the disposition of those complaints,
including any prosecution, enforcement action, or dismissal. Those reporting entities
are the Office of the Attorney General and State’s Attorneys’ offices, the Department
of Human Resources, the House and Senate Ethics Panels, the Judicial Conduct Board,
the Professional Responsibility Board, and the Office of the State Court Administrator.
Creation of Municipal Code of Ethics
Sec. 20 repeals 24 V.S.A. § 1984 (conflict of interest prohibition).
Sec. 21 repeals 24 V.S.A. § 2291 (enumeration of powers), subdivision (20).
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Sec. 22 creates a new Chapter 60, titled “Municipal Code of Ethics,” in Title 24
(municipal and county government), which includes the new sections 1991–1998.
Section 1991 (definitions) defines important terms such as “conflict of interest”
and “municipal officer.” Municipal officers include members of local legislative
and quasi-judicial bodies, and certain enumerated local officers.
Section 1992 (conflicts of interest) in subsections (a) and (b) creates an
affirmative duty for municipal officers to avoid conflicts of interest (and the
appearance of conflicts of interest) and to recuse themselves, unless the officer
determines there is “good cause” to proceed and notifies the legislative body of the
town, city, or village with a written justification for proceeding.
Section 1993 (prohibited conduct) prohibits directing unethical conduct;
preferential treatment; misuse of position; misuse of information; misuse of
government resources; offering, soliciting, or accepting gifts (excluding legal
campaign contributions); unauthorized commitments; and benefitting from
contracts. Now, a municipal officer shall not benefit from any contract unless the
benefit is not greater than that of other individuals generally affected by the
contract; the contract is a contract for employment with the municipality; the
contract was awarded via an open and public process of competitive bidding; or the
total value of the contract is less than $2,000.00.
Section 1994 (guidance and advisory opinions) replicates the guidance and
advisory opinions section of the State Code of Ethics (3 V.S.A. § 1225) to enable
the Executive Director of the State Ethics Commission may provide guidance and
advisory opinions to municipal officers with respect to a municipal officer’s duties
regarding the Municipal Code of Ethics and any other issue related to governmental
ethics.
Section 1995 (ethics training) requires that, within 120 days after the election or
appointment of a member of a legislative body or a quasi-judicial body, or a chief
administrative officer, mayor, town or city manager, those individuals undergo
ethics trainings, approved by the State Ethics Commission, and again thereafter
every three years.
Section 1996 (duties of municipalities) requires municipalities to post the
Municipal Code of Ethics and information on local investigation and enforcement
procedures, track completed trainings, designate who should receive ethics
complaints, initiate ethics complaints, track ethics complaints and the dispositions
of these, and provide the State Ethics Commission with a summary of ethics
complaints received and the disposition of these.
Section 1997 (enforcement and remedies) requires municipalities to adopt, by
ordinance, rule, or personnel policy, procedures for the investigation of complaints
that allege a municipal officer has violated the Municipal Code of Ethics and the
enforcement in instances of substantiated complaints, including methods of
enforcement and available remedies.
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Section 1998 (whistleblower protection) replicates State employees protections
to protect municipal employees from retaliation if they disclose any waste, fraud,
abuse of authority, violations of law, or ethical violations to a relevant public body.
Section 1999 (municipal charters; supplemental ethics policies) permits
municipalities to adopt additional ethics or personnel policies provided these are
not in conflict with the new Chapter 60. It also specifies that Chapter 60 preempts
conflicting provisions in any municipal charters.
Sec. 23 will require all currently employed municipal officers to complete two
hours of ethics training, which may be either in person or online. The training will
also include information on the State’s Open Meeting Law and the State’s Public
Records Act, which shall be approved by the Secretary of State.
Multiple effective dates, beginning on June 10, 2024
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Statutes affected:
As Introduced: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291
As Passed By the House -- Official: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291
As Passed By the House -- Unofficial: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291
As Passed by Both House and Senate -- Official: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291
As Passed by Both House and Senate -- Unofficial: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291
As Enacted: 17-2414, 3-1201, 3-1202, 3-1203, 3-1211, 3-1221(a), 3-1221, 3-1223, 3-1221(b), 3-1221(c), 3-1221(e), 3-1226, 24-1984, 24-2291