House advances H.875 to expand State Ethics Commission authority and adopt municipal ethics requirements; Colchester exemption amendment fails

On March 29, 2024, the Vermont House took up H.875, an act concerning the State Ethics Commission and a state code of ethics applicable to state and municipal officers. Representative Waters Evans (member from Charlotte) presented the bill on behalf of the House Government Operations and Military Affairs Committee and described the measure as an effort to increase transparency and accountability.

Key provisions described on the floor include: expanding required campaign and financial disclosures to county officers; adding reporting of certain client relationships and loans; requiring disclosure of individual publicly traded assets or fund interests valued at $25,000 or more (without requiring dollar amounts); creating a two‑year statute of limitations for complaints; authorizing the State Ethics Commission to investigate, hold hearings, issue warnings or reprimands, and enter resolution agreements; and applying the Vermont rules of civil procedure and evidence to hearings. The bill also directs the State Ethics Commission to produce an annual report and aggregate data on complaints and outcomes.

The measure extends a form of municipal coverage: municipal officers would be subject to the state code of ethics, a process for advisory opinions and required ethics training (to be completed within 120 days of taking office; current municipal officers would complete training by May 1, 2025). Municipalities must designate an ethics liaison and maintain records of ethics training and complaints (retained for the officer’s service period plus five years). The bill also includes limited whistleblower protections allowing a complainant, if certain criteria are met, to pursue a civil action in some cases.

The House Appropriations Committee offered an amendment to strike section 17 (which referenced positions in FY2025 general fund appropriations supporting the ethics commission); the House adopted that committee amendment. Representative Bridal of Colchester then offered an amendment that would have allowed municipalities that submit an annual certification letter to be exempt from the statute if their local policy did not conflict with the chapter. Supporters of the Colchester amendment framed it as protecting local control and recognizing municipalities with robust existing ethics policies; opponents said the exemption language risked creating a patchwork of standards and undermined the uniform floor established by the bill.

The Colchester amendment was taken by roll call and defeated 43–95. The House declined the amendment and proceeded with the amended bill; the committee reported H.875 favorably and the House advanced it in the order of business recorded in the transcript.

The floor record lists multiple witnesses who testified before the committee, including municipal managers, municipal clerks and treasurers, the Vermont League of Cities and Towns, and representatives of state ethics bodies. The bill sets staggered effective dates: some sections take effect on January 1, 2025, and others on January 1, 2026, as presented on the floor.