Ethics

The Vermont Legislature has passed H.875, which establishes a uniform municipal code of ethics. H.875 is waiting for the Governor’s signature in order to become law.

You can check the status of H.875 here and read its text here. We will update this page with more details soon.

Until H.875 takes effect, the following summarizes current law:

Vermont statute does not contain any single broad provision that regulates the ethical conduct of municipal officials. Unless a local official is acting in a quasi-judicial capacity, i.e. deciding someone’s legal rights, much like a court, state law generally allows municipalities to decide for themselves how to deal with conflicts of interest (COIs) and other ethical concerns.

There are some notable exceptions. Any official acting in a quasi-judicial capacity is prohibited from participating in a quasi-judicial matter if he or she has a direct or personal interest in the outcome, or if the case involves close relatives within a certain degree of relationship. 1 V.S.A. § 310(5); 12 V.S.A. § 61. In these situations, if someone challenged the board’s quasi-judicial decision in court, the court could opt to invalidate the decision based on the COI as defined in 12 V.S.A. § 61, or based on a determination that a decision-maker’s personal bias or ex parte communications violated a party’s constitutional due process rights. Development review boards and other “appropriate municipal panels” are required by state statute to adopt rules of ethics with respect to COIs. 24 V.S.A. § 4461(a). Additionally, school boards must comply with some very specific state-level ethics requirements: see 16 V.S.A. § 557 (gratuity and compensation prohibited); § 563 (COI policy required); § 5519 (public bids).

For more info on other statutes addressing dual office holding, bribery, kickbacks, embezzlement, and gifts, see our office’s COI handbook, Drawing Clear Lines.

Aside from the situations described above, how the ethical conduct of a local official is to be evaluated tends to depend on the language found in the town’s governance charter or in a COI/ethics ordinance or policy that applies to the officer in question or to the type of decision being made.

Some Vermont municipalities have governance charters, which are adopted by the voters and approved by the State Legislature, and some of these charters contain provisions addressing COIs or other matters of ethical behavior.

As of July 1, 2019, each Vermont town, city, and incorporated village should also have a COI/ethics ordinance or policy that applies to local officials. Act 79 of 2017 requires these municipalities to have in place either: a COI ordinance adopted by the voters that addresses five general elements listed in statute; or 2) a COI policy adopted by the selectboard that substantially complies with the content requirements for COI ordinances. See 24 V.S.A. §§ 1984, 2291.

Secretary of State Resources:

• Drawing Clear Lines: Adopting Conflict of Interest Ordinances for Local Officials (2008)
• Search Candidate Financial Disclosures [Elections Division, Campaign Finance Database]

Other Resources:

• Vermont Legislature: Act 79 of 2017 (establishing the State Ethics Commission and standards of governmental ethical conduct)
• Ethics and Conflicts of Interest materials for local officials (Vermont League of Cities & Towns)
• Model Code of Ethics for School Board Members (Vermont School Boards Association)
• Rules of Procedure and Ethics Manual for municipal zoning boards (2005) (Vermont Land Use Training and Information Collaborative)
• Vermont State Ethics Commission (regarding State officials and employees)
• Vermont Human Rights Commission (complaints of discrimination)