House concurs with Senate changes to ethics law, adds municipal reporting and training deadlines

The House reviewed and concurred in the Senate proposal of amendment to House Bill 875, an act relating to the State Ethics Commission and the State Code of Ethics, after debate over municipal training requirements and disclosure changes.

Member from Charlotte, presenting the Senate amendments, described changes to financial-disclosure rules: the language was changed from “publicly traded assets” to “individual stock holdings,” and the amendment “also adds virtual currencies to the list of assets that need to be disclosed.” The Senate proposal narrows certain disclosure thresholds: loans must be reported only if over $10,000 and municipal or state bond interests must be reported when valued at $25,000 or more.

The amendment clarifies the State Ethics Commission’s role regarding municipal complaints: the commission may receive complaints and refer them to other bodies as appropriate, and municipalities are excluded from a requirement to consult the commission that still applies to state agencies. The proposal retains confidentiality around resolution agreements but asks the commission to create a summary of any agreement that would be subject to the Public Records Act.

Section 15 of the amendment adds two members to the State Ethics Commission who will be former municipal officers, appointed by the speaker of the House and by the Senate Committee on Committees. The amendment also narrows the definition of “municipality” to towns, villages and cities (excluding entities such as fire and water districts) and moves effective dates for various provisions into 2025.

Members opposing the amendment said it imposes significant burdens on town clerks and volunteers and cautioned that the part-time ethics director lacks resources to carry out expanded duties. “It requires, some very significant burdens on our town clerks, our volunteers, officers, and every community in this state pretty much,” the Member from Chittenden said. Member from Pittsburgh echoed concerns about the timing and scope of training requirements for volunteer municipal officials.

Proponents said the amendments provide clarity and reduce liability by creating consistent expectations for local officials, and the House took a division vote. The clerk announced the result as 93 in favor and 33 opposed; the presiding officer declared the ayes had it and the House concurred in the Senate proposal of amendment.

The Senate amendments discussed on the floor include: expanded disclosure categories (individual stock holdings and virtual currencies), a $10,000 loan-disclosure threshold, a $25,000 municipal bond disclosure threshold, clarified commission authority to receive and refer complaints, creation of Public Records Act summaries for resolution agreements, addition of two former municipal officers to the commission, a narrowed municipal definition, and phased-in effective dates for rulemaking and expanded commission powers in 2025.

Following the vote, the House recessed for a dinner break until 7:15 PM.