§ 1. Fiscal year and biennial period.

The fiscal year shall commence on July 1 and end on June 30, but the accounts of the June terms of court shall be carried forward to the succeeding fiscal year. Each two consecutive fiscal years shall constitute a biennial period.

§ 2. F.H.A. securities as collateral.

Wherever collateral must or may be furnished by any depository in the State of Vermont as security for the deposit of any funds whatsoever, or wherever collateral must or may be deposited with any official of the State of Vermont pursuant to any statute of this State, mortgage notes and bonds insured and debentures issued by the Federal Housing Administrator shall be considered eligible collateral for such purposes.

§ 3. Change in fiscal quarters authorized.

Whenever by law an officer, whether State, county, or municipal and whether executive or judicial, is required to pay or turn over money or make a report to the State Treasurer or any other State official, department, institution, or agency on a quarterly basis, the Governor may by executive order require that the money be paid or turned over or the return or report be filed on such dates as the Governor shall designate, which dates shall be three months apart, any other provision of law notwithstanding. Before making the change, he or she shall give at least three months notice thereof by sending a copy of the executive order by personal delivery or certified mail to each officer required to make the payment, return, or report.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 20.

§ 4. Repealed. 1971, No. 260 (Adj. Sess.), § 29(b).

§ 5. Acceptance of grants.

1. Definitions.   As used in this section:
   1. “Loan” means a loan that is interest free or below market value.
   2. “State agency” means an Executive Branch agency, department, commission, or board.
2. Executive Branch approval.
   1. Approval required.   A State agency shall not accept the original of any grant, gift, loan, or any sum of money or thing of value, except as follows:
      1. the State agency is granted approval pursuant to this subsection (b); or
      2. Joint Fiscal Committee policies adopted pursuant to subsection (e) of this section do not require a State agency to obtain approval.
   2. Governor review.   The Governor shall review each grant, gift, loan, or any sum of money or thing of value and shall send a copy of the approval or rejection to the Joint Fiscal Committee through the Joint Fiscal Office together with the following information with respect to these items:
      1. the source and value;
      2. the legal and referenced title, in the case of a grant;
      3. the costs, direct and indirect, for the present and future years;
      4. the receiving department or program, or both;
      5. a brief statement of purpose; and
      6. any impact on existing programs if there is a rejection.
   3. Legislative review.
      1. The Governor’s approval in subdivision (b)(2) of this section shall be final, except as follows:
         1. When the General Assembly is not in session, within 30 days of receipt of the copy of an approval and related information required under subdivision (b)(2) of this section, a member of the Committee requests such grant, gift, loan, sum of money, or thing of value be placed on the Committee’s agenda; or
         2. When the General Assembly is in session, within 30 days of receipt of the copy of an approval and related information required under subdivision (b)(2) of this section, a member of the Committee requests that such grant, gift, loan, sum of money, or thing of value be held for legislative approval. If a copy of an approval and related information is received when the General Assembly is in session, but before the members of the Joint Fiscal Committee are appointed, one of the statutorily appointed members of the Committee may request to hold a grant for legislative approval. Legislative approval under this subdivision may be granted by legislation or resolution.
      2. In the event of a request to hold a grant made pursuant to subdivision (3) of this subsection (b), the grant shall not be accepted until approved by the Joint Fiscal Committee or the General Assembly.
      3. The 30-day period described in subdivision (3)(A)(i) of this subsection (b) may be reduced where expedited consideration is warranted in accordance with Joint Fiscal Committee policies adopted pursuant to subsection (e) of this section.
      4. Upon receipt of the copy of an approval and related information required under subdivision (b)(2) of this section while the General Assembly is in session, the Joint Fiscal Committee shall promptly file a notice with the House and Senate Clerks for publication in the respective calendars.
   4. Exceptions.
      1. General.   The review and approval process set forth in subsection (b) of this section shall not apply to the following items:
         1. the acceptance of grants, gifts, loans, sums of money, or other things of value with a value of $15,000.00 or less, if the acceptance of those items will not incur additional expense to the State or create an ongoing requirement for funds, services, or facilities; or
         2. a legal settlement.
      2. 1. Notification required.   The receiving agency shall promptly notify the Secretary of Administration and Joint Fiscal Office of the source, value, and purpose of any items received under this subdivision; provided, however, that no notification is required for an item received under this subdivision with a value of less than $1,500.00. (B) (i) Notification required.   The receiving agency shall promptly notify the Secretary of Administration and Joint Fiscal Office of the source, value, and purpose of any items received under this subdivision; provided, however, that no notification is required for an item received under this subdivision with a value of less than $1,500.00.
         2. The Joint Fiscal Office shall report all items received under this subdivision to the Joint Fiscal Committee quarterly. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
   5. Transportation.   With respect to acceptance of the original of a federal transportation earmark or of a discretionary federal grant for a transportation project, the provisions of subdivision (1) of this subsection shall apply, except that in addition:
      1. notification of the Governor’s approval or rejection shall also be made to the Chairs of the House and Senate Committees on Transportation; and
      2. such grant or earmark shall be placed on the agenda, and shall be subject to the approval, of a committee comprising the Joint Fiscal Committee and the Chairs of the House and Senate Committees on Transportation, if one of the Chairs or a member of the Joint Fiscal Committee so requests.
3. Legislative and Judicial Branch approval.
   1. Approval required.   The Legislative and Judicial Branches shall not accept the original of any grant, gift, loan, or any sum of money or thing of value, except as follows:
      1. approval is granted pursuant to the process set forth in subdivision (b)(3) of this section if the item received has a value of more than $15,000.00; and
      2. notification is sent to the Joint Fiscal Committee and the Secretary of Administration of the source, value, and purpose of the item received if the item has a value of $1,500.00 or more.
   2. Exceptions.   The review process set forth in subdivision (b)(2) of this section shall not apply to the approval of any grant, gift, loan, or any sum of money or thing of value received by the Legislative or Judicial Branches.
4. Limited service position.
   1. The Joint Fiscal Committee is authorized to approve a limited service position request in conjunction with a grant if the position is explicitly stated for a specific purpose in the grant. A limited service position request shall also include a certification from the appointing authority to the Joint Fiscal Committee that there exists equipment and housing for the position or that funds are available to purchase equipment and housing for the position.
   2. For the Executive Branch, the position request is approved pursuant to the process set forth in subsection (b) of this section. For the Legislative and Judicial Branches, the position request is approved pursuant to the process set forth in subsection (c) of this section.
   3. The position shall terminate with the expiration of the grant funding unless otherwise funded by an act of the General Assembly.
5. Policies.   The Joint Fiscal Committee is authorized to adopt policies to implement this section, including a policy on expedited review by the Joint Fiscal Committee when the General Assembly is not in session.

HISTORY: Added 1971, No. 260 (Adj. Sess.), § 29(a); amended 1977, No. 247 (Adj. Sess.), § 186, eff. April 17, 1978; 1983, No. 253 (Adj. Sess.), § 248; 1995, No. 46 , § 52; 1995, No. 63 , § 277, eff. May 4, 1995; 1995, No. 178 (Adj. Sess.), § 416, eff. May 22, 1996; 1997, No. 2 , § 72, eff. Feb. 12, 1997; 1997, No. 66 (Adj. Sess.), § 60, eff. Feb. 20, 1998; 2007, No. 65 , § 394; 2009, No. 146 (Adj. Sess.), § B15; 2009, No. 156 (Adj. Sess.), § E.127.2, eff. June 3, 2010; 2013, No. 142 (Adj. Sess.), § 54; 2013, No. 167 (Adj. Sess.), § 17; 2013, No. 179 (Adj. Sess.), § E.342.7; 2017, No. 85 , § E.700; 2019, No. 72 , § E.127.2; 2019, No. 88 (Adj. Sess.), § 68, eff. March 4, 2020.

§ 6. Indirect costs.

1. All State agencies and departments shall prepare and submit to the appropriate federal agency indirect cost rate proposals for the reimbursement of departmental and statewide indirect costs unless specifically exempted in writing by the Secretary of Administration.
2. Requests for federal funds shall include a specific request for reimbursement of indirect costs. Awards of statewide indirect costs will be deposited into the General Fund, except statewide indirect costs will be deposited into the Transportation Fund for costs recovered by the Agency of Transportation. The Commissioner of Finance and Management may authorize departments to retain recovered indirect cost receipts.

HISTORY: Added 1979, No. 205 (Adj. Sess.), § 137, eff. May 9, 1980; amended 1999, No. 1 , § 92, eff. March 31, 1999; 2011, No. 162 (Adj. Sess.), § E.102.

§ 101. Communications to Governor and Assembly.

The Treasurer shall prepare an annual financial report and shall submit to the Governor and either house of the General Assembly: abstracts; copies of accounts or official documents of any kind; and information relating to revenue, official transactions, and the Department of the Treasury.

HISTORY: Amended 1965, No. 158 , § 2; 1971, No. 13 , § 1, eff. Feb. 25, 1971; 2017, No. 74 , § 131.

§ 102. Embezzlements.

If the Treasurer diverts, misapplies, or conceals the public treasure, he or she shall be fined double the amount so diverted, misapplied, or concealed and shall be imprisoned not more than 10 years nor less than two years.

§ 103. Account with successor.

If the Treasurer goes out of office, he or she shall exhibit to his or her successor a true and particular account of the money received and paid out since the last examination of his or her books and accounts as provided in section 801 of this title, and, within 10 days after his or her successor is declared elected or is appointed, with such successor and the Auditor, he or she shall adjust and strike the balance found against him or her within such time as is prescribed by the Auditor, or be liable therefor to the State in a civil action.

§ 104. Balance due retiring Treasurer.

Upon such adjustment, if it appears that a balance is due to the retiring Treasurer, it shall be reported to the General Assembly and discharged as it directs.

§ 105. Settlement upon death of Treasurer.

If a person dies while holding such office, the settlement provided for in sections 103 and 104 of this title shall be made with his or her executor or administrator.

§ 106. Penalty for refusal to settle.

After demand made by the Auditor, if such retiring Treasurer refuses to exhibit and settle his or her account, he or she shall be fined $2,000.00 for each month’s refusal.

§ 107. Books and records delivered to successor.

At the time of adjusting his or her account or within 10 days after his or her term of office expires, such retiring Treasurer shall deliver to his or her successor the books of account, memorandum or registry, the bonds, bills, notes, obligations, contracts, securities, and other instruments or papers belonging to the State Treasury and, for each month’s default thereof, shall be fined $2,000.00.

§ 108. Repealed. 1999, No. 71 (Adj. Sess.), § 1.

§ 109. Solicitations and contributions prohibited.

1. As used in this section:
   1. “Firm” means any person or entity that provides investment services and includes the owner of the firm, excluding those shareholders owning less than one percent holdings in the firm’s outstanding shares, and all managers, officers, directors, partners, or employees who have managerial or discretionary responsibility to invest funds, manage funds, or provide investment services.
   2. “Investment services” means legal services, investment banking services, investment advisory services, underwriting services, financial advisory services, or brokerage firm services for brokerage, underwriting, and financial advisory activities that are within the statutory purview of the Treasurer.
   3. “Treasurer” means the Treasurer of the State of Vermont.
2. A firm that currently has a contract with the State Treasurer or a political committee established by that firm shall not make a contribution to, or solicit contributions on behalf of, a candidate for the Office of Treasurer. A violation of this subsection shall be considered a material breach and a default by the firm of any contract issued to it by the Treasurer. Upon the occurrence of such a material breach and default, the Treasurer shall notify the firm of the State’s intention to terminate the firm’s contract. The Treasurer shall forthwith seek to reissue the contract to another person or entity in accordance with existing law and procedures. This subsection shall not preclude the payment of compensation, expenses or fees to a firm that has violated this subsection regarding work performed or expenses incurred prior to the date the contract is terminated.
3. The Treasurer shall not enter into any contract with any firm if the firm or a political committee established by that firm has made a contribution or solicited contributions on behalf of a candidate for the Office of Treasurer after July 1, 1997 and within five years of the date of the contract.

HISTORY: Added 1997, No. 64 , § 26.

§ 110. Reports.

1. The Treasurer shall prepare and submit, consistent with 2 V.S.A. § 20(a) , reports on the following subjects:
   1. The Vermont Higher Education Endowment Trust Fund, pursuant to 16 V.S.A. § 2885(e) .
   2. [Repealed.]
   3. The Trust Investment Account, pursuant to subdivision 434(a)(5) of this title.
   4. , (5)[Repealed.]
2. Reports required to be submitted to the General Assembly annually by January 15 shall be consolidated in a single document.

HISTORY: Added 2003, No. 122 (Adj. Sess.), § 294b; amended 2009, No. 33 , § 83(m)(1); 2011, No. 139 (Adj. Sess.), § 31, eff. May 14, 2012.

§ 111. Financial Literacy Trust Fund.

1. There is hereby established and created a fund entitled the Financial Literacy Trust Fund to be administered by the State Treasurer. The purpose of the Fund is to promote the adoption of fiscally sound money management practices by Vermonters through education and outreach efforts that raise awareness of the need for and benefits of practicing such skills and to create opportunities to build and encourage the development of new financial literacy activities and educational products for Vermont citizens.
2. The Fund may receive State appropriations, gifts, grants, federal funds, and any other funds, both public and private, consistent with this section. The Funds may be expended for financial literacy projects as the Treasurer may direct, in accordance with the trust fund provisions of section 462 of this title.
3. The Treasurer may invest monies in the Fund in accordance with the provisions of section 434 of this title. All balances in the Fund at the end of the fiscal year shall be carried forward and shall not revert to the General Fund. Interest earned shall remain in the Fund. The Treasurer’s annual financial report to the Governor and the General Assembly shall contain an accounting of receipts, disbursements, and earnings of the Fund.

HISTORY: Added 2007, No. 192 (Adj. Sess.), § 6.009.

§ 131. Composition.

There shall be an Emergency Board to consist of the Governor, the Chair of the Senate Committee on Finance, the Chair of the Senate Committee on Appropriations, the Chair of the House Committee on Ways and Means, and the Chair of the House Committee on Appropriations; but the Chair of any one of such committees may designate a member of his or her committee who shall be a member of such Board in lieu of the Chair. The Board shall meet at the call of the Governor or a majority of the legislative members of the Board.

HISTORY: Amended 2017, No. 85 , § C.116, eff. June 28, 2017.

§ 132. Chair and Secretary.

The Governor shall be Chair, and the Secretary of Civil and Military Affairs shall be Secretary of the Board. The Secretary shall keep the minutes of each meeting of the Board in a book kept for that purpose, and such minutes shall be a public record, and certified copies of such record shall be furnished the Auditor and the Treasurer.

§ 133. Duties.

1. The Board shall have authority to make expenditures necessitated by unforeseen emergencies and may draw on the State’s General Fund for that purpose.
2. Pursuant to section 706 of this title, the Board shall also have authority to transfer appropriations made to other agencies and to use the transferred amounts to make expenditures necessitated by unforeseen emergencies.
3. In a fiscal year, the sum of the Board’s expenditures under subsections (a) and (b) of this section shall not exceed two percent of the total General Fund appropriation for the year of the expenditures.

HISTORY: Amended 2007, No. 65 , § 287.

§ 134. Insurance Reserve Fund.

The Insurance Reserve Fund is hereby created. All funds paid to the State under property insurance policies for the benefit of the State for losses to real and personal property shall be paid into the Insurance Reserve Fund.

HISTORY: Amended 1961, No. 64 , § 1, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 422, eff. May 22, 1996.

§ 135. Use of Fund.

When any building or property of the State is damaged by fire or other hazard, notwithstanding subdivision 588(4) of this title, the Board or, for amounts under $10,000.00, the Secretary of Administration, may at their discretion transfer from the Insurance Reserve Fund amounts for the purpose of replacing, repairing, or rebuilding the same, and for related losses.

HISTORY: Amended 1961, No. 64 , § 2, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 423, eff. May 22, 1996.

§§ 136-138. Repealed. 1995, No. 178 (Adj. Sess.), § 424, eff. May 22, 1996.

§ 161. Oath.

The Auditor shall take the oath of office prescribed by law.

§ 162. Repealed. 1959, No. 328 (Adj. Sess.), §§ 17, 35(f).

§ 163. Duties of the Auditor of Accounts.

In addition to any other duties prescribed by law, the Auditor of Accounts shall:

1. Annually perform or contract for:
   1. an audit of the basic financial statements of the State of Vermont;
   2. the financial and compliance audits of the State of Vermont’s federal programs as required by federal law, except that this audit requirement shall not apply to the University of Vermont or the Vermont State Colleges; and
   3. at his or her discretion, governmental audits as defined by governmental auditing standards issued by the U.S. Government Accountability Office (GAO) of every department, institution, and agency of the State, including trustees or custodians of retirement and other trust funds held by the State or any officer or officers of the State, and also including every county officer who receives or disburses funds of the State or for the benefit of the State or any county.
2. In his or her discretion, conduct a continuing post audit of all disbursements made through the Office of the Commissioner of Finance and Management or the Office of the State Treasurer, including disbursements to a municipality, school supervisory union, school district, or county.
3. 1. Prominently post and retain on his or her official State website, and update at least annually, the following information: (3) (A) Prominently post and retain on his or her official State website, and update at least annually, the following information:
      1. All reports that result from audits conducted under subdivision (1) of this section.
      2. [Repealed.]
      3. A summary of all embezzlement convictions and false claim convictions as described in 13 V.S.A. § 3016 against any agency or department of the State since July 1, 2007. The summary shall include the names of all persons convicted of those offenses.
   2. Periodically follow up on the Auditor’s recommendations contained in audit reports arising from audits conducted under subdivision (1) of this section for up to three years from the date of the audit report.
4. 1. 1. From time to time, as audits are completed, report his or her audit findings first to the Speaker of the House of Representatives and the President Pro Tempore of the Senate, then to the Governor, the Secretary of Administration, the Commissioner of Finance and Management, and the head of the department, institution, or agency covered by the report.
      2. The audit reports shall be public records.
   2. 1. Draft audit reports, working papers, correspondence, and other materials relied on by the Auditor of Accounts to produce the draft audit report shall be confidential and exempt from public inspection and copying under the Public Records Act until the audit is completed but shall be provided to the audited entity upon request unless the record is exempt from public inspection and copying under another provision of law. (B) (i) Draft audit reports, working papers, correspondence, and other materials relied on by the Auditor of Accounts to produce the draft audit report shall be confidential and exempt from public inspection and copying under the Public Records Act until the audit is completed but shall be provided to the audited entity upon request unless the record is exempt from public inspection and copying under another provision of law.
      2. Draft audit reports, working papers, correspondence, and other materials received by an audited entity prior to completion of the audit shall remain confidential until completion of the audit, and shall not be further disclosed by the audited entity until completion of the audit.
5. Make special audits of any department, institution, and agency as the Governor may from time to time require.
6. [Repealed.]
7. Subject to the provisions of 3 V.S.A. chapter 13, employ and set the compensation of such assistants, clerical or otherwise, as he or she deems necessary for the proper and efficient administration of his or her office. However, he or she shall not expend or authorize expenditure of funds for his or her office in excess of the amount appropriated for his or her office in any fiscal year.
8. Require all State departments and agencies to file with the Auditor of Accounts all audit reports and reports of findings and recommendations received as a result of audits and examinations conducted by or for any federal agency.
9. , (10)[Repealed.]

   (11) (A) Make available to all counties, municipalities, and supervisory unions as defined in 16 V.S.A. § 11(23) and supervisory districts as defined in 16 V.S.A. § 11(24) a document designed to determine the internal financial controls in place to ensure proper use of all public funds.

   (i) The Auditor shall consult with the Vermont School Boards Association, the Vermont Association of School Business Officials, and the Vermont League of Cities and Towns in the development of the document.

   (ii) The Auditor shall strive to limit the document to one letter-size page.

   (B) The Auditor shall also make available to public officials charged with completing the document instructions to assist in its completion.

   (12) Make available to county, municipal, and school district officials with fiduciary responsibilities an education program related to those responsibilities, as resources permit.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 17; amended 1967, No. 91 , § 1; 1969, No. 219 (Adj. Sess.), §§ 2, 4, eff. March 27, 1970; 1971, No. 32 , eff. July 1, 1971; 1977, No. 146 (Adj. Sess.), § 4; 1983, No. 195 (Adj. Sess.), § 5(b); 1985, No. 122 (Adj. Sess.), § 1, eff. April 17, 1986; 1999, No. 159 (Adj. Sess.), § 15; 2003, No. 67 , § 13c; 2005, No. 184 (Adj. Sess.), § 15; 2007, No. 121 (Adj. Sess.), §§ 23, 32; 2011, No. 155 (Adj. Sess.), § 23; 2013, No. 108 (Adj. Sess.), § 2, eff. April 22, 2014; 2019, No. 104 (Adj. Sess.), § 1.

§ 164. Certified copies.

The Auditor shall be a certifying officer, and a certified copy of a record or paper belonging to his or her Department or that is lodged there by law shall be admitted as evidence by the courts in any cause, civil or criminal. He or she shall furnish copies of records or papers upon being paid the legal fees therefor by the person requesting the same.

§ 165. Repealed. 1961, No. 40, § 2.

§ 166. Payments to towns; returns by Commissioner of Finance and Management.

On or before January 10 of each year, the Commissioner of Finance and Management shall transmit to the auditors of each town a statement showing the amount of money paid by the State to the town and the purpose for which paid during the year ending December 31 preceding the date of such statement, the date of such payments, and purpose for which made, unless the Commissioner of Finance and Management is requested to send such statement at some other date to conform to the fiscal year of such municipality.

HISTORY: Added 1961, No. 40 , § 1; amended 1969, No. 301 (Adj. Sess.), § 2, eff. April 9, 1970; 1983, No. 195 (Adj. Sess.), § 5(b); 2013, No. 142 (Adj. Sess.), § 55; 2015, No. 131 (Adj. Sess.), § 31.

§ 167. Records to be available for audit.

1. For the purpose of examination and audit authorized by law, all the records, accounts, books, papers, reports, and returns in all formats of all departments, institutions, and agencies of the State, including the trustees or custodians of trust funds and all municipal, school supervisory union, school district, and county officers who receive or disburse funds for the benefit of the State, shall be made available to the Auditor of Accounts. It shall be the duty of each officer of each department, institution, and agency of the State or municipality, school supervisory union, school district, or county to provide the records, accounts, books, papers, reports, returns, and such other explanatory information when required by the Auditor of Accounts.
2. In connection with any of his or her duties, the Auditor of Accounts may administer oaths and may subpoena any person to appear before him or her. Such persons shall testify under oath and be subject to the penalties of perjury and may be examined concerning any matter relating to the statutory duties of the Auditor provided by section 163 of this title. Nothing in this subsection shall limit a person’s Fifth Amendment rights against self-incrimination.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 19; amended 1969, No. 219 (Adj. Sess.), § 3, eff. March 27, 1970; 1971, No. 149 (Adj. Sess.); 2007, No. 121 (Adj. Sess.), § 24; 2007, No. 169 (Adj. Sess.), § 6.

§ 168. Single Audit Revolving Fund.

1. 1. The Single Audit Revolving Fund is established within the State Treasury, to be administered by the Auditor of Accounts, from which payments may be made for the costs of audits performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b . (a) (1) The Single Audit Revolving Fund is established within the State Treasury, to be administered by the Auditor of Accounts, from which payments may be made for the costs of audits performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b .
   2. All monies received from charges made for audit services under the provisions of subsection (b) of this section and sums that may be appropriated to the Fund shall be deposited in the Fund.
   3. Any balance remaining in the Fund at the end of any fiscal year shall be carried forward and remain a part of the Fund.
2. 1. The Auditor of Accounts shall charge the State department, agency, commission, instrumentality, political subdivision, or State-created authority audited for the direct and indirect costs of an audit performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b . (b) (1) The Auditor of Accounts shall charge the State department, agency, commission, instrumentality, political subdivision, or State-created authority audited for the direct and indirect costs of an audit performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b .
   2. Costs shall be determined by the Auditor of Accounts and costs associated with subdivisions 163(1) and (2) of this title shall be approved by the Secretary of Administration.

HISTORY: Added 1985, No. 122 (Adj. Sess.), § 2, eff. April 17, 1986; amended 2005, No. 215 (Adj. Sess.), § 288; 2019, No. 104 (Adj. Sess.), § 2; 2019, No. 154 (Adj. Sess.), § E.130, eff. Oct. 2, 2020; 2021, No. 74 , § E.130.

§ 181. Repealed. 1987, No. 243 (Adj. Sess.), § 52(1), eff. June 13, 1988.

§ 182. Duties of Commissioner.

1. In addition to the duties expressly set forth elsewhere by law, the Commissioner of Finance and Management shall:
   1. Prescribe appropriate systems for all State departments and agencies to use in accounting, and each department and agency shall keep their accounts in accordance with a system prescribed by the Commissioner. The Commissioner may review and examine any accounting system to determine its compliance with the prescribed system.
   2. Maintain a system of central accounting of income and disbursement so as to enable fiscal officers of the State at any time to provide an evaluation and analysis of the status of State finances.
   3. Coordinate the fiscal procedures of the State, including all departments, institutions, and agencies with the controlling accounts kept under this section.
   4. Maintain a system of encumbrance accounting to control expenditures within budget appropriations.
   5. In the Commissioner’s discretion, pre-audit receipts, expenditures, and encumbrances.
   6. Draw warrants on the Treasurer for all valid and legal payroll disbursements certified by voucher.
   7. Draw warrants on the Treasurer for all disbursements.
   8. Prepare monthly revenue reports for the Governor, Secretary of Administration, and other officials and for release to the general public, and a comprehensive annual financial report in accordance with generally accepted accounting principles that shall be distributed to the Chairs of the House Committees on Appropriations, on Corrections and Institutions, and on Ways and Means and to the Senate Committees on Appropriations, on Finance, and on Institutions on or before December 31 of each year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subdivision.
   9. Make available monthly reports of appropriations, expenditures, encumbrances, and balances for all operating departments.
   10. Maintain a standard chart of accounts structure pertaining to appropriation, revenue, and expenditure codes.
   11. [Repealed.]
   12. Exercise central management of the appropriation act.
   13. Maintain the general control ledger of State accounts.
   14. Manage special funds in accordance with this section and with chapter 7, subchapter 5 of this title.
2. Nothing in this section shall be interpreted to allow the Commissioner to expend money, except in accordance with the provisions of section 462 of this title.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 7; amended 1965, No. 158 , § 3; 1971, No. 13 , § 2, eff. Feb. 25, 1971; 1975, No. 118 , § 86, eff. April 30, 1975; 1977, No. 113 , § 351; 1983, No. 195 (Adj. Sess.), § 3; 1987, No. 243 (Adj. Sess.), §§ 52(2), 53, eff. June 13, 1988; 1989, No. 210 (Adj. Sess.), § 8a; 1991, No. 226 (Adj. Sess.), § 1, eff. May 28, 1992; 1995, No. 123 (Adj. Sess.), § 4, eff. June 6, 1996; 1997, No. 66 (Adj. Sess.), § 64, eff. Feb. 20, 1998; 2001, No. 149 (Adj. Sess.), § 92, eff. June 21, 2002; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7 , § 3; 2007, No. 65 , § 391; 2015, No. 131 (Adj. Sess.), § 6.

§ 183. Financial and Human Resource Information Internal Service Fund.

1. There is established in the Department of Finance and Management a Financial and Human Resource Information Internal Service Fund, to consist of revenues from charges to agencies, departments, and similar units of Vermont State government, and to be available to fund the costs of the Division of Financial Operations in the Department of Finance and Management, and the technical support and services provided by the Agency of Digital Services for the statewide central accounting and encumbrance, budget development, and human resource management systems.
2. The rate of the charges shall be proposed by the Commissioner of Finance and Management, subject to the approval of the Secretary of Administration. Proposed rates of charges shall be based upon the cost of operations.

HISTORY: Added 2001, No. 142 (Adj. Sess.), § 309; amended 2003, No. 156 (Adj. Sess.), § 15; 2009, No. 1 (Sp. Sess.), § E.100.3; 2011, No. 63 , § E.103; 2019, No. 49 , § 11, eff. June 10, 2019.

§§ 184-200. [Reserved for future use.]

§ 201. Repealed. 1987, No. 243 (Adj. Sess.), § 55, eff. June 13, 1988.

§ 202. Duties of Commissioner.

In addition to the duties expressly set forth elsewhere by law, the Commissioner of Finance and Management through his or her Department shall:

1. perform the following duties with respect to the budget:
   1. prepare an operating budget for the Governor-elect or Governor as provided by sections 301-307 of this title;
   2. prepare and install forms upon which departmental and capital budget requests are made;
   3. schedule and assist in hearings on departmental and agency requests;
   4. assist the Governor and, on request, the Legislature on budget matters;
   5. exercise continuing supervision and study of budget procedures; and
   6. carry out expenditure control and budget-balancing policies and procedures as directed by the Secretary of Administration;
2. perform the following duties with respect to fiscal management and management analysis:
   1. carry out continuing studies of the operation of existing or new State agencies and make recommendations to obtain most economic and effective management;
   2. assist departments on procedures and other problems of management;
   3. carry on a research program in the field of governmental and financial administration and analysis of State tax structure and yield; and
   4. study simplification and standardization of forms and methods in use in various departments for purposes of management and budget control;
3. prepare estimates of State revenue and income when requested by the Governor; and
4. provide the legislative Joint Fiscal Office on or before November 1 of the first fiscal year of each biennium and December 1 of the second fiscal year of each biennium copies of the most recent budget forms submitted by all governmental units in connection with annual or supplemental budget requests.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 3; amended 1969, No. 75 , § 1; 1973, No. 144 (Adj. Sess.), § 1; 1979, No. 205 (Adj. Sess.), § 127, eff. May 9, 1980; 1985, No. 74 , § 306, eff. May 28, 1985; 1987, No. 243 (Adj. Sess.), § 56, eff. June 13, 1988.

§ 203. Repealed. 2009, No. 135 (Adj. Sess.), § 26(15).

Subchapter 6. Contracts for Goods and Services [Repealed]

§ 301. Department estimate and statement.

1. The head of every department of State, board, or commission, and any officer or individual having in charge any State activity for which funds are appropriated by the General Assembly, on or before September 1 preceding each biennium, shall file with the Commissioner of Finance and Management, upon forms prepared and furnished by the Commissioner of Finance and Management, statements showing in detail the amount appropriated and expended for the current and next preceding fiscal years, and the amount estimated for such activity to be necessary for the ensuing two fiscal years, properly arranged in detail by classification and summaries. Requests for items for any activity, purpose, or program not previously authorized by legislation shall not be included in those statements but shall be clearly stated on separate accompanying forms.
2. Such statements shall also include an itemized account of the revenues of the State for the current fiscal year to date, the last two preceding fiscal years, and the estimated revenues for the ensuing two fiscal years, all in such manner and form as to show comparatively the revenues and expenditures of each of the periods so tabulated, with the ensuing two fiscal years.
3. If any State department or agency fails to transmit the program and financial information provided under subsections (a) and (b) of this section on or before the specified date, the Agency of Administration may prepare that information with the same effect as if it had been prepared by the proper State department or agency.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(a); 1965, No. 108 ; 1969, No. 14 , No. 75, § 2; 1973, No. 144 (Adj. Sess.), § 2, eff. July 1, 1974; 1987, No. 243 (Adj. Sess.), § 57, eff. June 13, 1988.

§ 302. Tabulation of estimates and statements.

On or before November 15 preceding each biennium, the Commissioner of Finance and Management and the Secretary of Administration shall deliver to the Governor and to the Governor-elect, if they so request, statements of State accounts setting forth in tabulated form all appropriations and expenditures for the current fiscal year, all appropriations and expenditures for all State purposes for the last four preceding fiscal years, estimates of all claims against the State, and all expenditures from the State Treasury authorized by law, together with the estimates filed with them for the ensuing two fiscal years, under the provisions of subsection 301(a) of this title.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(b); 1969, No. 75 , § 3; 1971, No. 24 ; 1973, No. 144 (Adj. Sess.), § 3, eff. July 1, 1974.

§ 303. Delivery of estimates and statements when no Governor elected by popular vote.

In the event of no election of Governor by the voters at the November election, the Secretary of Administration shall deliver the statements and estimates herein provided for to the person elected Governor by the General Assembly.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(c).

§ 304. Preparation of budget.

1. Upon receiving from the Secretary of Administration the statements and estimates as provided in this chapter, the Governor-elect shall immediately thereafter study and review the same and shall make such investigations as may be necessary to enable him or her to prepare a budget setting forth such recommendations as he or she may determine.
2. The Secretary of Administration shall furnish the Governor-elect with complete information relative to the finances of the State and shall render such assistance as requested in preparation of the budget.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(d).

§ 305. Power to revise estimates.

In making up the budget, the Governor-elect shall have the power to revise, increase, decrease, or eliminate the sum estimated to be needed for or by each activity hereinbefore referred to and shall include in his or her message dealing with the budget, as provided in section 306 of this title, the reasons for his or her action thereon.

§ 305a. Official State revenue estimate.

1. On or about January 15 and again by July 31 of each year, and at such other times as the Emergency Board or the Governor deems proper, the Joint Fiscal Office and the Secretary of Administration shall provide to the Emergency Board their respective estimates of State revenues in the General, Transportation, Transportation Infrastructure Bond, and Education Funds. The January revenue estimate shall be for the current and next two succeeding fiscal years, and the July revenue estimate shall be for the current and immediately succeeding fiscal years. Federal fund estimates shall be provided at the same times for the current fiscal year.
2. Within 10 days of receipt of such estimates, the Board shall determine an official State revenue estimate for deposit in the respective funds for the years covered by the estimates. For the purpose of revising an official revenue estimate only, a majority of the legislative members of the Emergency Board may convene a meeting of the Board.
3. 1. 1. The January estimates shall include estimated caseloads and estimated per-member per-month expenditures for the current and next succeeding fiscal years for each Medicaid enrollment group as defined by the Agency and the Joint Fiscal Office for State Health Care Assistance Programs or premium assistance programs supported by the Global Commitment Fund and for the programs under any Medicaid Section 1115 waiver. (c) (1) (A) The January estimates shall include estimated caseloads and estimated per-member per-month expenditures for the current and next succeeding fiscal years for each Medicaid enrollment group as defined by the Agency and the Joint Fiscal Office for State Health Care Assistance Programs or premium assistance programs supported by the Global Commitment Fund and for the programs under any Medicaid Section 1115 waiver.
      2. For Board consideration, there shall be provided three versions of the next succeeding fiscal year’s estimated per-member per-month expenditures:
         1. one version shall include inflation trends as set forth in subdivision 307(d)(5) of this title;
         2. one version shall be without the inflationary adjustment; and
         3. one version shall reflect any additional increase or decrease to Medicaid provider reimbursements that would be necessary to attain Medicare levels as set forth in subdivision 307(d)(6) of this title.
      3. For VPharm, the January estimates shall include estimated caseloads and estimated per-member per-month expenditures for the current and next succeeding fiscal years by income category.
      4. The January estimates shall include the expenditures for the current and next succeeding fiscal years for the Medicare Part D phased-down State contribution payment and for the disproportionate share hospital payments.
   2. In July, the Administration and the Joint Fiscal Office shall make a report to the Emergency Board on the most recently ended fiscal year for all Medicaid and Medicaid-related programs, including caseload and expenditure information for each Medicaid eligibility group. Based on this report, the Emergency Board may adopt revised estimates for the current fiscal year and estimates for the next succeeding fiscal year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

HISTORY: Added 1995, No. 178 (Adj. Sess.), § 282; amended 1997, No. 60 , § 19, eff. July 1, 1998; 2001, No. 142 (Adj. Sess.), § 148c; 2005, No. 6 , § 87, eff. March 26, 2005; 2005, No. 191 (Adj. Sess.), § 46; 2005, No. 215 (Adj. Sess.), § 315; 2007, No. 65 , § 268; 2007, No. 192 (Adj. Sess.), § 6.010; 2009, No. 4 , § 93, eff. April 29, 2009; 2009, No. 67 (Adj. Sess.), § 106, eff. February 25, 2010; 2011, No. 3 , § 88, eff. Feb. 17, 2011; 2011, No. 75 (Adj. Sess.), § 108; 2013, No. 50 , §§ E.106, E.306; 2017, No. 154 (Adj. Sess.), § 31, eff. May 21, 2018; 2017, No. 167 (Adj. Sess.), § 15, eff. May 22, 2018; 2019, No. 6 , § 69, eff. April 22, 2019.

§ 305b. Education property tax increment; Emergency Board estimate.

Annually, at the January meeting of the Emergency Board held pursuant to section 305a of this title, the Joint Fiscal Office and the Secretary of Administration shall provide to the Emergency Board a consensus estimate of the impact on the Education Fund resulting from tax increment financing districts authorized pursuant to 24 V.S.A. chapter 53 and section 5404a of this title. The estimate shall be for the succeeding fiscal year. The Emergency Board shall adopt an official estimate of the impact on the Education Fund at the January meeting.

HISTORY: Added 2017, No. 73 , § 11a, eff. June 13, 2017.

§ 306. Budget report.

1. The Governor shall submit to the General Assembly, not later than the third Tuesday of every annual session, a budget that shall embody his or her estimates, requests, and recommendations for appropriations or other authorizations for expenditures from the State Treasury. In the first year of the biennium, the budget shall relate to the two succeeding fiscal years. In the second year of the biennium, it shall relate to the succeeding fiscal year. The budget shall be based upon the official State revenue estimates, including the Medicaid estimated caseloads and per-member per-month expenditures, adopted by the Emergency Board pursuant to section 305a of this title.
   1. As part of the budget report, the Governor shall:
      1. develop and publish annually for public review a current services budget, providing the public with an estimate of what the current level of services is projected to cost in the next fiscal year;
      2. provide an estimated cost of deferred infrastructure maintenance in the State’s transportation system; and
      3. itemize current services liabilities, including the total obligations and the amount estimated for full funding in the current year in which an amortization schedule exists. These shall include the following liabilities projected for the start of the budget fiscal year:
         1. pension liabilities for the Vermont State Employees’ Retirement System (VSERS) and the Vermont State Teachers’ Retirement System (VSTRS) and other postemployment benefit liabilities under current law and relevant Government Accounting Standards Board standards for these systems;
         2. child care fee scale funding requirements pursuant to 33 V.S.A. § 3512 to bring total year funding to current market rates and current federal poverty levels;
         3. Reach Up funding full benefit obligations, including the standard of need for the current fiscal year, prior to any rateable reductions made pursuant to 33 V.S.A. § 1103(a) , which ensure that the expenditures for the programs shall not exceed appropriations;
         4. statutory funding levels from the Property Transfer Tax;
         5. projected fund liabilities of the funds identified in the “Notes” section of the most recent Comprehensive Annual Financial Report (CAFR), including the Workers’ Compensation Fund, the State Liability Insurance Fund, the Medical Insurance Fund, and the Dental Insurance Fund; and
         6. a summary of other nonmajor enterprise funds and internal service funds where deficits exist in excess of $1,500,000.00.
   2. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
2. The Governor shall also submit to the General Assembly, not later than the third Tuesday of each session of every biennium, a tax expenditure budget that shall embody his or her estimates, requests, and recommendations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. The tax expenditure budget shall be divided into three parts and made as follows:
   1. A budget covering tax expenditures related to nonprofits and charitable organizations and covering miscellaneous expenditures shall be made by the third Tuesday of the legislative session beginning in January 2012 and every three years thereafter.
   2. A budget covering tax expenditures related to economic development, including business, investment, and energy, shall be made by the third Tuesday of the legislative session beginning in January 2013 and every three years thereafter.
   3. A budget covering tax expenditures made in furtherance of Vermont’s human services, including tax expenditures affecting veterans, shall be made by the third Tuesday of the legislative session beginning in January 2014 and every three years thereafter.
3. The tax expenditure budget shall be provided to the House Committee on Ways and Means and the Senate Committee on Finance, which Committees shall review the tax expenditure budget and shall report their recommendations in bill form.
4. The Governor shall develop a process for public participation in the development of budget goals, as well as general prioritization and evaluation of spending and revenue initiatives.

HISTORY: Amended 1969, No. 75 , § 4; 1973, No. 144 (Adj. Sess.), § 4; 1974; 1987, No. 243 (Adj. Sess.), § 58, eff. June 13, 1988; 2009, No. 1 (Sp. Sess.), § H.16, eff. June 2, 2009; 2011, No. 45 , § 36j, eff. May 24, 2011; 2013, No. 142 (Adj. Sess.), § 56; 2015 No. 172 (Adj. Sess.), § E.100.7; 2017, No. 85 , § C.117, eff. June 28, 2017; 2019, No. 72 , § E.124.

§ 306a. Purpose of the State budget.

1. The State budget, consistent with Chapter I, Article 7 of Vermont’s Constitution, should “be instituted for the common benefit, protection, and security of the people, nation, or community . . .” The State budget should be designed to address the needs of the people of Vermont in a way that advances human dignity and equity and in a manner that supports the population-level outcomes set forth in 3 V.S.A. § 2311 .
2. Spending and revenue policies will seek to promote economic well-being among the people of Vermont and foster a vibrant economy. Integral to achieving the purpose of the State budget is continuous evaluation of the use of public funds by systems of outcome measurement based on indicators that measure success in accomplishing the purposes of the State budget.
3. Spending and revenue policies will reflect the public policy goals established in State law and recognize every person’s need for health, housing, dignified work, education, food, social security, and a healthy environment.
4. As consistent with State law and in conjunction with the federal government, the budget will reflect support for economic development, public safety, transportation, and other infrastructure needs.
5. Revenue measures shall also be based on the principles of sustainability and stability. The Administration shall develop budget and revenue proposals as part of a transparent and accountable process with direct and meaningful participation from Vermont residents.

HISTORY: Added 2011, No. 162 (Adj. Sess.), § E.100.1; amended 2015, No. 11 , § 32; 2019, No. 131 (Adj. Sess.), § 291.

§ 307. Form of budget.

1. The budget shall be arranged and classified so as to show separately the following estimates and recommendations:
   1. expenses of State administration;
   2. deficiencies, overdrafts, and unexpended balances in appropriations of former years;
   3. bonded debt, loans, and interest charges;
   4. all requests and proposals for expenditures for new projects, new construction, additions, improvements, and other capital outlay; and
   5. with respect to the tax expenditure budget required under subsection 306(b) of this chapter, all requests and proposals for new, amended, or continued tax expenditures as defined in section 312 of this chapter.
2. The budget shall also include in detail definite recommendations of the Governor relative to the amounts that should be appropriated to each of the activities herein referred to. It shall also include definite recommendations of the Governor relative to the financing of the expenditures recommended and the appropriate amounts to be raised from ordinary revenue, direct taxes, bonds, or loans. The financing of the expenditures recommended, as proposed by the Governor, shall not include the funds from the budget stabilization trust fund as established in section 308 of this title. With the budget, the Governor shall submit to the General Assembly such messages, statements, or supplemental data with reference to the same, as the Governor may deem expedient; however, budget documentation shall include to the extent possible the following:
   1. Specific sources of receipts. In the event of special fund appropriations, the particular special fund sources shall be itemized.
   2. Interdepartmental transfers shall be explained, including the source department of said transfer.
   3. Changes in positions within departmental budgets, including prior year, current year, and requested budget year positions counts by title and category. Positions should be identified as to whether they are filled and unfilled.
   4. A document outlining proposed changes in program funding and related policy changes that they reflect. This summary shall include narrative description of the proposed changes.
3. The budget shall also include a strategic plan for each State agency, department, office, or other entity or program. A strategic plan shall include the following:
   1. a statement of mission and goals that support the relevant population-level outcomes set forth in 3 V.S.A. § 2311 ;
   2. a description of program performance measures used to demonstrate output and results;
   3. identification of the groups of people served, including those having service priorities or other service measures established by law, and estimates of the changes in those groups expected during the term of the plan;
   4. an analysis of the use of resources to meet needs, including future needs, an analysis of additional resources that may be necessary to meet future needs;
   5. an analysis of expected changes in the services provided by that agency because of changes in State or federal law;
   6. a description of the means and strategies for meeting needs of the agency or program, including future needs and achieving the goals under which the agency or program provides services;
   7. a description of the capital improvement needs of the agency during the period covered by the plan;
   8. a prioritization, if appropriate, of the capital investment needs of the agency or program during the period covered by the plan; and
   9. any other information that may be required.
4. The Governor’s budget shall include his or her recommendations for an annual budget for Medicaid and all other health care assistance programs administered by the Agency of Human Services. The Governor’s proposed Medicaid budget shall include a proposed annual financial plan, and a proposed five-year financial plan, with the following information and analysis:
   1. anticipated revenues;
   2. anticipated expenditures, including anticipated per-member per-month expenditures for each population category eligible for health care assistance;
   3. anticipated caseloads, including anticipated caseloads for each population category eligible for health care assistance;
   4. anticipated utilization;
   5. health care inflation trends that reflect consideration of provider reimbursements approved under 18 V.S.A. § 9376 and expenditure trends reported under 18 V.S.A. § 9383 ;
   6. recommendations for funding provider reimbursement at levels sufficient to ensure reasonable access to care, and at levels at least equal to Medicare reimbursement;
   7. recommendations relating to Medicaid and other program eligibility, the benefit plan, cost-sharing, utilization controls, reimbursement, and any other matter necessary to align anticipated expenditures and revenues; and
   8. any other recommendations or information affecting the financial sustainability of Medicaid and all other health care assistance programs administered by the Agency of Human Services.
5. The budget shall also include any proposed expenditures and charges for enterprise and internal service funds to be billed to departmental budgets. Expenditures from enterprise and internal service funds shall be managed in accordance with subsection 462(b) of this title.

HISTORY: Amended 1987, No. 114 , § 1, eff. June 29, 1987; 1993, No. 210 (Adj. Sess.), § 281; 2001, No. 142 (Adj. Sess.), § 148d; 2003, No. 66 , §§ 298, 299; 2003, No. 122 (Adj. Sess.), § 10, eff. June 10, 2004; 2005, No. 174 (Adj. Sess.), § 61; 2009, No. 1 (Sp. Sess.), § H.17, eff. June 2, 2009; 2011, No. 63 , § E.103.1; 2013, No. 50 , § E.306.1; 2013, No. 179 (Adj. Sess.), § E.306; 2015, No. 11 , § 33; 2017, No. 167 (Adj. Sess.), § 16, eff. May 22, 2018.

§ 308. General Fund Budget Stabilization Reserve; creation and purpose.

1. It is the purpose of this section to reduce the effects of annual variations in State revenues upon the General Fund budget of the State by reserving certain surpluses in General Fund revenues that may accrue for the purpose of offsetting deficits or reducing General Fund bonds.
2. There is hereby created a General Fund Budget Stabilization Reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated General Fund surplus occurring at the close of a fiscal year shall be reserved within the General Fund Budget Stabilization Reserve, provided that the balance reserved shall not exceed five percent of the appropriations from the General Fund for the prior fiscal year, and any additional amounts as may be authorized by the General Assembly. Any undesignated General Fund surplus remaining after the General Fund Budget Stabilization Reserve has been brought to the maximum authorized level shall remain in the General Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated General Fund surplus for the reduction of General Fund bonds authorized but yet to be issued by the Treasurer, a reduction of revenues, or for other needs as the General Assembly may determine.
3. In any fiscal year, if the General Fund is found to have an undesignated fund deficit, the General Fund Budget Stabilization Reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated fund deficit as determined by Generally Accepted Accounting Principles.
4. Determination of the amount of the undesignated General Fund surplus or fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.

HISTORY: Added 1987, No. 114 , § 2, eff. June 29, 1987; amended 1991, No. 50 , § 284; 1993, No. 25 , § 74, eff. May 18, 1993; 1997, No. 61 , § 260b.

§ 308a. Transportation Fund Budget Stabilization Reserve; creation and purpose.

1. It is the purpose of this section to reduce the effects of annual variations in State revenues upon the Transportation Fund budget of the State by reserving certain surpluses in Transportation Fund revenues that may accrue for the purpose of offsetting deficits or reducing Transportation Fund bonds.
2. There is hereby created a Transportation Fund Budget Stabilization Reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated Transportation Fund surplus occurring at the close of a fiscal year shall be reserved within the Transportation Fund Budget Stabilization Reserve, provided that the balance reserved shall not exceed five percent of the appropriations from the Transportation Fund for the prior fiscal year, and any additional amounts as may be authorized by the General Assembly. Any undesignated Transportation Fund surplus remaining after the Transportation Fund Budget Stabilization Reserve has been brought to the maximum authorized level shall remain in the Transportation Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated Transportation Fund surplus for the reduction of Transportation Fund bonds authorized but yet to be issued by the Treasurer, a reduction of revenues, or for other needs as the General Assembly may determine.
3. In any fiscal year, if the Transportation Fund is found to have an undesignated fund deficit, the Transportation Fund Budget Stabilization Reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated Transportation Fund deficit as determined by Generally Accepted Accounting Principles.
4. Determination of the amount of the undesignated Transportation Fund surplus or Fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.
5. Commencing in fiscal year 2007, interest earned on funds in the Transportation Fund Budget Stabilization Reserve shall be credited to the Transportation Fund.

HISTORY: Added 1993, No. 25 , § 75, eff. May 18, 1993; amended 1997, No. 61 , § 260c; 2005, No. 80 , § 62.

§ 308b. Human Services Caseload Reserve.

1. There is created within the General Fund a Human Services Caseload Reserve. Expenditures from the Reserve shall be subject to an appropriation by the General Assembly or approval by the Emergency Board. Expenditures from the Reserve shall be limited to Agency of Human Services caseload-related needs primarily in the Departments for Children and Families, of Health, of Mental Health, of Disabilities, Aging, and Independent Living, of Vermont Health Access, and settlement costs associated with managing the Global Commitment waiver.
2. The Secretary of Administration may transfer to the Human Services Caseload Reserve any General Fund carry-forward directly attributable to Agency of Human Services caseload reductions and the effective management of related federal receipts, with the exclusion of the Department of Corrections.
3. The Human Services Caseload Reserve shall contain two sub-accounts:
   1. A sub-account for incurred but not reported Medicaid expenses. Each year beginning with fiscal year 2020, the Department of Finance and Management shall adjust the amount reserved for incurred but not reported Medicaid expenses to equal the amount specified in the Comprehensive Annual Financial Report for the fiscal year occurring two years prior for the estimated amount of incurred but not reported Medicaid expenses associated with the current Medicaid Global Commitment waiver.
   2. A sub-account for Medicaid-related pressures related to caseload, utilization, changes in federal participation in existing human services programs, and settlement costs associated with managing the Global Commitment waiver. Any decrease in the amount of required reserves in subdivision (1) of this subsection shall first be reserved in the 27/53 Reserve under section 308e of this title in order to fund the current fiscal year obligation for the next year in which a 53rd week of Medicaid payments is due, next scheduled to occur in fiscal year 2022. The remainder shall result in an offsetting increase in the account for Medicaid-related pressures, as defined in subdivision (2) of this subsection. Any increase in the amount of required reserve in subdivision (1) of this subsection shall require a corresponding transfer from the funds reserved in subdivision (2) of this subsection, to the extent there are funds available.

HISTORY: Added 1997, No. 147 (Adj. Sess.), § 119a, eff. April 29, 1998; amended 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 62; 2007, No. 15 , § 21; 2009, No. 33 , § 83(m)(2); 2009, No. 156 , (Adj. Sess.), § I.31; 2013, No. 142 (Adj. Sess.), § 97; 2017, No. 3 , § 75, eff. March 2, 2017; 2018, No. 11 (Sp. Sess.), § D.105; 2019, No. 72 , § D.104; 2019, No. 88 (Adj. Sess.), § 69, eff. March 4, 2020.

§ 308c. General Fund and Transportation Fund Balance Reserves.

1. There is hereby created within the General Fund a General Fund Balance Reserve, also known as the “Rainy Day Reserve.” After satisfying the requirements of section 308 of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year General Fund surplus shall be reserved in the General Fund Balance Reserve. The General Fund Balance Reserve shall not exceed five percent of the appropriations from the General Fund for the prior fiscal year without legislative authorization.
   1. , (2)[Repealed.]

      (3) Of the funds that would otherwise be reserved in the General Fund Balance Reserve under this subsection, 50 percent of any such funds shall be reserved as necessary and transferred from the General Fund to the Vermont State Employees’ Postemployment Benefits Trust Fund established by 3 V.S.A. § 479a .

2. Use of General Fund Balance Reserve.
   1. The General Assembly may specifically appropriate the use of up to 50 percent of the amounts added in the prior fiscal year from the General Fund Balance Reserve to fund unforeseen or emergency needs.
   2. If the official State revenue estimates of the Emergency Board for the General Fund, determined under section 305a of this title, have been reduced by two percent or more from the estimates determined and assumed for purposes of the general appropriations act or budget adjustment act, funds in the General Fund Balance Reserve may be appropriated to compensate for a reduction of revenues.
3. There is hereby created within the Transportation Fund a Transportation Fund Balance Reserve. After satisfying the requirements of section 308a of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year Transportation Fund surplus shall be reserved in the Transportation Fund Balance Reserve. Monies from this Reserve shall be available for appropriation by the General Assembly.
4. Determination of the amounts of the General Fund and Transportation Fund Balance Reserves shall be made by the Commissioner of Finance and Management and reported, along with the amounts appropriated pursuant to subsection (a) of this section, to the legislative Joint Fiscal Committee at its first meeting following September 1 of each year.

HISTORY: Added 2005, No. 71 , § 256; amended 2007, No. 65 , § 275; 2009, No. 4 , § 96, eff. April 29, 2009; 2011, No. 162 (Adj. Sess.), §§ D.102, D.103.1; 2013, No. 1 , § 95, eff. March 7, 2013; 2013, No. 1 79 (Adj. Sess.), § D.104, eff. June 9, 2014; 2018, No. 11 (Sp. Sess.), § D.107; 2019, No. 6 , § 89, eff. April 22, 2019; 2021, No. 114 (Adj. Sess.), § 29, effective July 1, 2022.

§ 308d. Repealed. 2011, No. 162 (Adj. Sess.), § D.103.1(c).

§ 308e. 27/53 Reserve.

1. 1. There is hereby created within the General Fund the 27/53 Reserve. The purpose of this reserve is to meet the liabilities of the recurring 27th State payroll and the 53rd week of Medicaid payments. These liabilities will be funded by reserving a prorated amount of general funds each year, before the liability comes due. (a) (1) There is hereby created within the General Fund the 27/53 Reserve. The purpose of this reserve is to meet the liabilities of the recurring 27th State payroll and the 53rd week of Medicaid payments. These liabilities will be funded by reserving a prorated amount of general funds each year, before the liability comes due.
   2. Beginning in September 2016 and annually thereafter at the September Joint Fiscal Committee meeting, the Commissioner of Finance and Management shall report on the anticipated liability for the next 27th payroll and 53rd week of Medicaid payments, providing the current reserve balance and a schedule of annual amounts needed to meet the obligation of these payments.
2. As part of the Governor’s budget submission under section 306 of this title, the amount prorated for the upcoming fiscal year identified in subdivision (a)(2) of this section shall be included as a budgeted transfer to the 27/53 Reserve.
3. In a fiscal year where a 27th State payroll or 53rd week of Medicaid payment is due, the General Assembly shall appropriate the funds from the 27/53 Reserve to meet the expenditures within the year in which these payments are due.

HISTORY: Added 2015, No. 172 (Adj. Sess.), § B.1105.

§ 309. Capital budget report.

1. Consolidated capital budget request.   In addition to the general operating budget request to be submitted by the Governor to the General Assembly pursuant to this chapter, the Governor shall submit to the General Assembly, not later than the third Tuesday of every annual session, a consolidated capital budget request. In the first year of the biennium, the budget shall relate to the next two fiscal years. In the second year of the biennium, the budget shall relate primarily to the next fiscal year but may request amendments to the current or to previous fiscal years or refer to requests for future fiscal years. The request shall encompass all undertakings that may require State general obligation debt financing, including transportation projects as follows:

   1. Subdivision (a)(1) effective until July 1, 2023; see also subdivision (a)(1) effective July 1, 2023 set out below.

      Activities proposed for funding by general obligation debt financing shall be restricted to tangible capital investments, but may include the planning, design, and engineering directly associated with a tangible capital investment.

      (1)

      Subdivision (a)(1) effective July 1, 2023; see also subdivision (a)(1) effective until July 1, 2023 set out above.

      Activities proposed for funding by general obligation debt financing shall be restricted to tangible capital investments, but may include the planning and design directly associated with a tangible capital investment.

   2. Proposed activities shall be further restricted to those capital expenses allowed under federal laws governing the use of State bond proceeds.
   3. The capital budget request shall be segmented by the expected functional life of proposed activities, and thus by a corresponding prudent use of either long-term bond issues with a customary 20-year payback period or shorter-term bond issues with a lesser payback period.
   4. The capital budget shall not include requests for debt financing of State agency operating expenses not directly related to a capital investment as required hereinabove. The latter operating expenses shall be accounted for in the Governor’s annual general operating budget request.
2. Affordable bond authorization proposal.   In the first year of the biennium, the annual capital budget request of the Governor shall include a statement of the total amount of new State tax supported general obligation debt the Governor considers advisable for the General Assembly to authorize for the next two fiscal years, after having considered the maximum amount recommended for the following fiscal year by the Capital Debt Affordability Advisory Committee as provided by chapter 13, subchapter 8 of this title.
3. Women employed on State capital construction projects.   This State shall encourage an increase in workforce participation rates for women in all aspects of publicly funded capital construction projects for which monies are requested under this section and authorized by the General Assembly in the Capital Construction Act pursuant to section 701a of this title, including projects of the Vermont Housing and Conservation Trust.
4. [Repealed.]
5. Report duration.   The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to any report to be made under this section.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 2; amended 1991, No. 256 (Adj. Sess.), § 31, eff. June 9, 1992; 1993, No. 59 , § 21, eff. June 3, 1993; 1999, No. 29 , § 42, eff. May 19, 1999; 2009, No. 161 (Adj. Sess.), § 45, eff. June 4, 2010; 2011, No. 40 , § 35, eff. May 20, 2011; 2011, No. 104 (Adj. Sess.), § 31, eff. May 7, 2012; 2013, No. 1 , § 96, eff. March 7, 2013; 2013, No. 1 , § 97, eff. July 1, 2023; 2013, No. 142 (Adj. Sess.), § 57; 2019, No. 14 , § 72, eff. April 30, 2019.

§ 310. Form of annual capital budget and 10-year capital program plan.

1. Each biennial capital budget request submitted to the General Assembly shall be accompanied by, and placed in the context of, a 10-year State capital program plan to be prepared, and revised annually, by the Governor and approved by the General Assembly. The 10-year plan shall include a list of all projects that will be recommended for funding in the current and ensuing nine fiscal years. The list shall be prioritized based on need.
2. The capital budget request for the following biennium shall be presented as the next increment of the 10-year plan. Elements of the plan shall include:
   1. Assessment and projection of need.
      1. Capital needs and projections shall be based upon current and projected statistics on capital inventories and upon State demographic and economic conditions.
      2. Capital funding shall be categorized as follows:
         1. State buildings, facilities, land acquisitions, major maintenance, renewable energy sources, and conservation;
         2. higher education;
         3. aid to municipalities for education, environmental conservation, including water, sewer, and solid waste projects, and other purposes; and
         4. transportation facilities.
      3. Capital needs and projections shall be for the current and the next nine fiscal years, with longer-term projections presented for programs with reasonably predictable longer-term needs.
      4. Capital needs and projections shall be presented independently of financing requirements or opportunities.
      5. Capital needs and projections shall include an estimated cost of deferred infrastructure maintenance in State buildings and facilities.
   2. Comprehensive cost and financing assessment.
      1. Amounts appropriated and expended for the current fiscal year and for the preceding fiscal year shall be indicated for capital programs and for individual projects. The assessment shall indicate further the source of funds for any project that required additional funding and a description of any authorized projects that were delayed.
      2. Amounts proposed to be appropriated for the following fiscal year and each of the nine years thereafter shall be indicated for capital programs and for individual projects and shall be revised annually to reflect revised cost estimates and changes made in allocations due to project delays.
      3. The capital costs of programs and of individual projects, including funds for the development and evaluation of each project, shall be presented in full for the entire period of their development.
      4. The operating costs, both actual and prospective, of capital programs and of individual projects shall be presented in full for the entire period of their development and expected useful life.
      5. The financial burden and funding opportunities of programs and of individual projects shall be presented in full, including federal, State, and local government shares, and any private participation.
      6. Alternative methods of financing capital programs and projects should be described and assessed, including debt financing and use of current revenues.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 3; amended 2011, No. 104 (Adj. Sess.), § 32, eff. May 7, 2012; 2013, No. 51 , § 34; 2019, No. 42 , § 26, eff. May 30, 2019.

§ 311. Retirement funds integrity report.

1. The Governor shall include, as a part of the annual budget report required by section 306 of this title, a statement of the extent by which the recommended appropriations to the Teachers’ Retirement Funds and to the Vermont Employees’ Retirement Funds differ from the amounts as recommended by the Vermont Employees’ Retirement System Retirement Board as provided by 3 V.S.A. § 471(n) and by the Teachers’ Retirement System Board of trustees as provided by 16 V.S.A. § 1942(r) and Board estimates for current obligations for retiree health care costs. If the Governor’s recommended appropriations are less than the amounts recommended by one or both of the boards of the two retirement systems for retirement obligations and retiree health care, the Governor shall set forth the long-term financial implications to the State of such shortfall and present a plan to achieve and preserve the fiscal integrity of the retirement funds of the retirement system or systems.
2. At the request of the House or Senate Committee on Government Operations or on Appropriations, the State Treasurer and the Commissioner of Finance and Management shall present to the requesting committees the recommendations submitted under 3 V.S.A. § 471(n) and 16 V.S.A. § 1942(r) .

HISTORY: Added 1991, No. 265 (Adj. Sess.), § 3; amended 2005, No. 48 , § 3; 2005, No. 93 (Adj. Sess.), § 80, eff. March 3, 2006; 2009, No. 1 (Sp. Sess.), § E.103.1; 2013, No. 142 (Adj. Sess.), § 58; 2015, No. 131 (Adj. Sess.), § 32.

§ 312. Tax expenditure report.

1. As used in this section, “tax expenditure” shall mean the actual or estimated loss in tax revenue resulting from any exemption, exclusion, deduction, credit, preferential rate, or deferral of liability applicable to the tax. Tax expenditures shall not include the following:
   1. revenue outside the taxing power of the State;
   2. provisions outside the normal structure of a particular tax;
   3. revenue forgone as unduly burdensome to administer; and
   4. revenue forgone for the purpose of avoiding government taxing itself.
2. Biennially, as part of the budget process, beginning on January 15, 2009, the Department of Taxes and the Joint Fiscal Office shall file with the House Committees on Ways and Means and on Appropriations and the Senate Committees on Finance and on Appropriations a report on tax expenditures in the personal and corporate income taxes, sales and use tax, meals and rooms tax, insurance premium tax, bank franchise tax, education property tax, diesel fuel tax, gasoline tax, and motor vehicle purchase and use tax. The Office of Legislative Counsel shall also be available to assist with this tax expenditure report. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. The report shall include, for each tax expenditure, the following information:
   1. a description of the tax expenditure;
   2. the most recent fiscal information available on the direct cost of the tax expenditure in the past two years;
   3. the date of enactment of the expenditure;
   4. a description of and estimate of the number of taxpayers directly benefiting from the expenditure provision;
   5. a description of the statutory purpose explaining the policy goal behind the expenditure as required by subsection (d) of this section and 2013 Acts and Resolves No. 73, Sec. 5; and
   6. a compilation of the items excluded under subsection (a) of this section.
3. [Repealed.]
4. Every tax expenditure, as defined in subsection (a) of this section, in the tax expenditure report required by this section shall be accompanied in statute by a statutory purpose explaining the policy goal behind the exemption, exclusion, deduction, or credit applicable to the tax. The statutory purpose shall appear as a separate subsection or subdivision in statute and shall bear the title “Statutory Purpose.” Notwithstanding any other provision of law, a tax expenditure listed in the tax expenditure report that lacks a statutory purpose in statute shall not be implemented or enforced until a statutory purpose is provided. The Department of Taxes shall notify the General Assembly when it has determined that a tax expenditure listed in the tax expenditure report lacks a statutory purpose, and the Department shall specify a date, no later than one year after its determination, that it will cease implementation or enforcement of the tax expenditure.

HISTORY: Added 2005, No. 75 , § 26; amended 2005, No. 207 (Adj. Sess.), § 23, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), § 24, eff. June 6, 2008; 2009, No. 160 (Adj. Sess.), § 1, eff. June 4, 2010; 2011, No. 45 , § 36k, eff. May 24, 2011; 2013, No. 73 , § 4, eff. July 1, 2014; 2013, No. 142 (Adj. Sess.), § 59; 2013, No. 200 (Adj. Sess.), § 21; 2017, No. 74 , § 132; 2019, No. 14 , § 73, eff. April 30, 2019; 2019, No. 131 (Adj. Sess.), § 292.

§ 313. Repealed. 2009, No. 19, § 4.

§ 314. Grant report.

1. Annually, beginning January 31, 2015, the Department of Finance and Management shall publish on its website a report on all grants of federal and State monies made by each Executive Branch agency in the preceding State fiscal year. The report shall be formatted as a table and shall include, for each grant:
   1. an identification number or code for each federal or State grant issued by an agency;
   2. the name and address of the recipient or subrecipient of the State or federal grant;
   3. a description of the purpose or use of the grant;
   4. the amount of the grant; and
   5. the Catalog of Federal Domestic Assistance (CFDA) number for each federal grant.
2. Grant reports issued under this section shall be public records available for inspection and review.
3. As used in this section, “grant” means a legally enforceable agreement between an agency (grantor) and a recipient or subrecipient (grantee) to carry out a purpose as defined in that agreement.

HISTORY: Added 2009, No. 19 , § 3, eff. July 1, 2014; amended 2011, No. 75 (Adj. Sess.), § 116, eff. March 7, 2012.

§ 315. Repealed. 2019, No. 49, § 12, eff. June 10, 2019.

§ 401. Accounts.

1. The Commissioner of Finance and Management shall keep fair and accurate accounts of monies received and disbursed so as to show the proceeds of the several branches of revenue and the expenses of each department of the government.
2. The Treasurer shall keep an accurate account in books of account of all monies received by the State from whatever source and of all monies withdrawn from the Treasury of the State upon warrants issued by the Commissioner of Finance and Management.
3. In recording revenues of the General Fund as set forth in section 435 of this title and revenues of the Transportation Fund as set forth in 19 V.S.A. § 11 , the Commissioner of Finance and Management shall as of June 30 each year maintain accounting records in accordance with Generally Accepted Accounting Principles that ensure consistency with each preceding fiscal year.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 18; 1979, No. 74 , § 328, eff. May 8, 1979; 1981, No. 87 , § 4; 1983, No. 195 (Adj. Sess.), § 5; 1987, No. 243 (Adj. Sess.), §§ 59, 60, eff. June 13, 1988; 2015, No. 97 (Adj. Sess.), § 65.

§ 402. Receipts.

The Treasurer and Commissioner of Finance and Management shall give a receipt to persons for money paid, stating for what purpose it is paid, and shall immediately enter the payment upon their books under its appropriate head.

HISTORY: Amended 1967, No. 154 , § 1.

§ 403. Repealed. 1959, No. 328 (Adj. Sess.), § 35(g).

§ 404. Returned payments; penalty.

1. Agencies and departments of State government may assess a penalty of $20.00 against the issuer for each payment for amounts due in the form of a check, draft, electronic payment, or other acceptable forms of payment that have been dishonored for lack of funds or credit to pay the same.
2. Such penalty collected shall be credited to a special fund established and managed pursuant to chapter 7, subchapter 5 of this title, or to another budgeted fund other than the General Fund, and shall be available to the agency or department to offset the costs of collecting the amount owed.

HISTORY: Added 1983, No. 59 , § 12, eff. April 22, 1983; amended 1989, No. 222 (Adj. Sess.), § 1, eff. May 31, 1990; 1991, No. 234 (Adj. Sess.), § 2; 1993, No. 27 , § 5; 1997, No. 59 , § 21, eff. June 30, 1997; 2013, No. 191 (Adj. Sess.), § 1; 2017, No. 74 , § 133.

§ 431. Depositories of State funds.

1. The Treasurer and the Governor shall select the banks in which the funds of the State Treasury shall be deposited. Each agency or department of the State shall be required to obtain the approval of the Treasurer to establish and maintain a bank account of a selected bank as well as develop procedures, approved by the Treasurer, to reconcile a bank account.
2. The Treasurer is hereby authorized to enter into a pledgee agreement with the Federal Reserve Bank for the purposes of collateralization of account balances through the use of a joint-custody account. The Treasurer is authorized to execute the Federal Reserve Bank’s standard form pledgee agreement, including the limitations of liability, limitations of duties, and indemnification contained in the pledgee agreement.

HISTORY: Amended 1977, No. 162 (Adj. Sess.), § 2; 1989, No. 73 , § 272; 1997, No. 147 (Adj. Sess.), § 261a; 2003, No. 66 , § 38b; 2007, No. 121 (Adj. Sess.), § 25.

§ 432. Management of invested State money.

In the management of funds and securities belonging to the State or held in the Treasury, with approval of the Governor, he or she may change the form of investment thereof by exchange of securities or by sale and reinvestment of the same, as may be required for the safety and permanent security of such funds; may collect accruing interest and reinvest the same; and may collect, enforce payment of, and reinvest all maturing securities and obligations and, for such purposes, may make legal transfers of the title of the same.

HISTORY: Amended 2007, No. 121 (Adj. Sess.), § 26.

§ 433. Investments of State money.

1. Investments of State funds shall be made in:
   1. obligations of the United States, its agencies, and instrumentalities, which have a liquid market with readily determinable market value;
   2. certificates of deposit and other evidences of deposit at banks, community development credit unions as defined in 8 V.S.A. § 30101 , and savings and loan associations approved by the Treasurer;
   3. bankers’ acceptances issued by domestic banks where the guaranteeing bank is rated in the highest tier assigned to the investments by at least two nationally recognized rating agencies;
   4. commercial paper rated in the highest tier by at least two nationally recognized rating agencies;
   5. investment-grade obligations of state or local governments, instrumentalities, and public authorities;
   6. repurchase agreements whose underlying purchased securities consist of any of the investments specified in subdivisions (1) through (5) of this subsection;
   7. investment agreements or guaranteed investment contracts rated or guaranteed by a financial institution whose senior long-term debt obligations are rated, at the time such agreement or contract is entered into, in the highest tier assigned to such investments by a nationally recognized rating agency, and where the Treasurer has the option to terminate each agreement in the event such rating is downgraded below the highest rating tier; and
   8. money market mutual funds that either are regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities or are managed in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940.
2. Investments of State funds shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of their capital as well as the probable income to be derived.
3. Investments of State funds shall be made in accordance with written guidelines adopted by the Treasurer. Such guidelines shall address the liquidity, diversification, safety of principal, yield, maturity, and quality and capability of investment management, with primary emphasis on safety and liquidity.

HISTORY: Amended 1991, No. 238 (Adj. Sess.), § 1, eff. May 28, 1992; 2005, No. 46 , § 1; 2009, No. 76 (Adj. Sess.), § 1, eff. April 13, 2010.

§ 434. Investment of certain funds.

1. 1. A Trust Investment Account is hereby created to maximize the earnings of individual funds by associating them together for common investment. (a) (1) A Trust Investment Account is hereby created to maximize the earnings of individual funds by associating them together for common investment.
   2. The Trust Investment Account may include:
      1. the whole or any part of individual trust funds resulting from court settlements, private bequests, grants, or other awards accepted in accordance with section 5 of this title, provided the terms thereof do not require a separate investment;
      2. the whole or any part of the funds created by express enactment of the General Assembly to finance particular or restricted programs that provide that only investment earnings of the fund shall be used for program purposes, including the Vermont Higher Education Endowment Trust Fund established pursuant to 16 V.S.A. § 2885 ; and
      3. any other funds that the State Treasurer identifies, in consultation with the Secretary of Administration, as appropriate for inclusion in the account.
   3. The State Treasurer may invest and reinvest the funds in the account and hold, purchase, sell, assign, transfer, and dispose of the investments in accordance with the standard of care established by the prudent investor rule under 9 V.S.A. chapter 147. The Treasurer shall apply the same investment objectives and policies adopted by the Vermont State Employees’ Retirement System, where appropriate, to the investment of funds in the Trust Investment Account.
   4. At reasonable intervals, but at least annually in June of each fiscal year, the Treasurer shall credit each individual fund in the Trust Investment Account with a pro rata share of the net income of the Account. The value of the individual funds transferred to or withdrawn from the Trust Investment Account shall be on the basis of the fair market value of the total funds of the Account at the time of the transfer or withdrawal. The Treasurer may withdraw monies from the Account as permitted or required by the terms of the individual funds or as required by acts of the General Assembly.
   5. Annually, the Treasurer shall prepare a report to the House Committee on Ways and Means and the Senate Committee on Finance on the financial activity of the Trust Investment Account. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subdivision.
2. The State Treasurer may invest and reinvest the monies deposited into the Tobacco Litigation Settlement Fund established by section 435a of this title and may hold, purchase, sell, assign, transfer, and dispose of the investments in accordance with the standard of care established by the prudent investor rule under 9 V.S.A. chapter 147.

HISTORY: Added 1999, No. 66 (Adj. Sess.), § 60, eff. Feb. 8, 2000; amended 2003, No. 122 (Adj. Sess.), § 294e; 2011, No. 139 (Adj. Sess.), § 32, eff. May 14, 2012; 2015, No. 131 (Adj. Sess.), § 7.

§ 435. General Fund.

1. There is established the General Fund, which shall be the basic operating fund of the State.  The General Fund shall be used to finance all expenditures for which no special revenues have otherwise been provided by law.
2. The General Fund shall be composed of revenues from the following sources:
   1. alcoholic beverage tax levied pursuant to 7 V.S.A. chapter 15;
   2. [Repealed.]
   3. electrical energy tax levied pursuant to chapter 213 of this title;
   4. corporate income and franchise taxes levied pursuant to chapter 151 of this title;
   5. individual income taxes levied pursuant to chapter 151 of this title;
   6. all corporation taxes levied pursuant to chapter 211 of this title;
   7. 69 percent of the meals and rooms taxes levied pursuant to chapter 225 of this title;
   8. [Repealed.]
   9. revenues from the Racing Special Fund consistent with 31 V.S.A. § 630 ;
   10. 33 percent of the revenue from the property transfer taxes levied pursuant to chapter 231 of this title and the revenue from the gains taxes levied each year pursuant to chapter 236 of this title; and
   11. [Repealed.]
   12. all other revenues accruing to the State not otherwise required by law to be deposited in any other designated fund or used for any other designated purpose.

HISTORY: Added 1973, No. 262 (Adj. Sess.), § 52; amended 1975, No. 254 (Adj. Sess.), § 163; 1977, No. 118 (Adj. Sess.), § 2, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 1997, No. 156 (Adj. Sess.), § 39, eff. April 29, 1998; 1999, No. 49 , § 78; 1999, No. 66 (Adj. Sess.), § 55, eff. Feb. 8, 2000; 1999, No. 152 (Adj. Sess.), § 272b; 2003, No. 68 , § 37, eff. July 1, 2004; 2005, No. 191 (Adj. Sess.), § 43; 2011, No. 143 (Adj. Sess.), § 56a, eff. July 1, 2013; 2017, No. 74 , § 134; 2017, No. 85 , § H.4, eff. July 1, 2018; 2018, No. 11 (Sp. Sess.), § H.9; 2019, No. 76 , § 4a, eff. Oct. 1, 2019.

§ 435a. Tobacco Litigation Settlement Fund.

1. A Tobacco Litigation Settlement Fund shall be established in the State Treasury, separate from the General Fund and any other fund, for the support of tobacco use prevention, cessation, and control, and for other health care purposes.
2. Into the Fund shall be deposited all monies received by the State in connection with the Master Tobacco Settlement Agreement between members of the tobacco industry and the State approved by the Vermont Superior Court on December 14, 1998 and finalized in Vermont on January 13, 1999, and any interest that accrues on the balance of such monies.
3. Of the balance in the Tobacco Litigation Settlement Fund, $19,200,000.00 is hereby reserved for the sole purpose of long-term sustainable tobacco education, prevention, cessation, and control programs and the Trust Fund proposal developed in accordance with 1999 Acts and Resolves No. 62 , Sec. 274(a)(4)(A)(iii).

HISTORY: Added 1999, No. 62 , § 275a.

§ 436. Interfund borrowing.

Notwithstanding any provisions of law, the State Treasurer, with the approval of the Governor, may borrow from any funds heretofore or hereafter created by the Legislature such available amounts as he or she may determine to be necessary or desirable for the purpose of defraying the expenses of government, including the payment of notes issued for such purposes. Such borrowing may be only made twice a year; first, during the period commencing 15 business days prior to the end of the State’s fiscal year and ending 15 business days after the end of the State’s fiscal year, and second, during the period commencing on December 10, or the preceding Friday if December 10 shall fall on a Saturday or Sunday, and ending on January 10 of the succeeding year. No later than the last day of the period during which the funds were borrowed, the State Treasurer shall transfer to any such fund from which such initial borrowing has been made an amount equal to such borrowed amount, together with interest thereon at such rate as the State Treasurer in his or her sole discretion shall determine.

HISTORY: Added 1997, No. 61 , § 254; amended 2005, No. 71 , § 34a.

§ 461. Disbursements on Commissioner’s warrants.

The Treasurer shall not disburse monies from the State Treasury except upon warrants issued by the Commissioner of Finance and Management, unless otherwise provided.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.

§ 462. Appropriation required.

1. Except in the case of funds held by the State in trust, rebates payable to the U.S. Treasury Department in accordance with the provisions of section 476 of this title, or unless otherwise specified by statute, no monies shall be paid out of the Treasury of the State except upon specific appropriation. The Commissioner of Finance and Management shall not issue his or her warrant except as authorized under the provisions of this section. Such warrant shall be the certificate of the Commissioner of Finance and Management that the account covered by the same is approved for payment by the State Treasurer.
2. All expenditures from enterprise and internal service funds, except those directly resulting from a client-driven demand for products or services, shall be made pursuant to an appropriation. Based on the needs of the programs, the Commissioner of Finance and Management may change authorized spending limits during the course of the year and may anticipate receipts for enterprise and internal service funds.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1985, No. 125 (Adj. Sess.), § 5, eff. April 18, 1986; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1997, No. 66 (Adj. Sess.), § 63, eff. Feb. 20, 1998; 1997, No. 147 (Adj. Sess.), § 262.

§ 463. Itemized bills with vouchers required.

The Commissioner of Finance and Management shall require all bills presented to him or her for allowance to be fully itemized and accompanied, as far as possible, with vouchers.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1995, No. 123 (Adj. Sess.), § 5, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7 , § 4.

§ 464. Itemized statements and receipts required.

When required by the Commissioner of Finance and Management and before payment therefor is made by the State, all claimants for compensation for services rendered or expense incurred for the State shall furnish the Commissioner of Finance and Management itemized statements in such form as the Commissioner of Finance and Management may from time to time prescribe and shall be verified by written declarations or, if specifically authorized by the Commissioner of Finance and Management, by electronic signature as defined at 9 V.S.A. § 271(9) that they are made under the pains and penalties of perjury, and a person who willfully makes a false statement shall be guilty of perjury and be punished accordingly.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1993, No. 140 (Adj. Sess.), § 105, eff. April 15, 1994; 1995, No. 123 (Adj. Sess.), § 6, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7 , § 5; 2009, No. 4 , § 100, eff. April 29, 2009.

§ 465. Only lawful claims allowed; warrants.

The Commissioner of Finance and Management shall allow only a valid and legal claim except as otherwise specifically directed. He or she shall issue his or her warrant conformably hereto, and no other officer shall issue a warrant on the State Treasurer.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.

§ 466. Requisitions.

1. Upon requisition of an officer having authority to expend money for the payment of expenses chargeable to the State, with the approval of the Governor, the Commissioner of Finance and Management is authorized to issue his or her warrant on the Treasurer for funds necessary for such expenses. Such advances shall not be made until such officer files with the State Treasurer a good and sufficient bond, approved by the Governor and Commissioner of Finance and Management, to indemnify the State against all loss or shortage of sums so advanced. The expense of such bond shall be paid by the State.
2. The State Treasurer may advance funds for travel when the travel has been approved by the Governor or the Governor’s delegated representatives.  The amounts to be advanced and the requirements for settlement will be determined by rules and regulations established by the State Treasurer.
3. The State Treasurer may enter into contracts with banks and other financial institutions in order to establish a credit card reimbursement program for State officials and employees and may guarantee payment of charges incurred under this program.  No person shall charge personal items to a credit card account guaranteed by the State of Vermont under such a program.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1979, No. 205 (Adj. Sess.), § 138, eff. May 9, 1980; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 99 ; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 33 , § 62.

§ 467. Accounts with Superior Court clerks.

The Commissioner of Finance and Management shall issue a warrant in favor of each Superior Court clerk when the clerk requires money for election or court expenses, and the State Treasurer shall charge the same to the clerk. The clerk shall be credited for monies properly disbursed by him or her, and the balance shall be paid by the clerk into the Treasury.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 189.

§ 468. Repealed. 1959, No. 328 (Adj. Sess.), § 35(h).

§ 469. Requisition for court expenses.

With the approval of the Court Administrator, the Supreme Court, the Judicial Bureau, and the Superior Court may requisition money from the State to pay fees and expenses related to grand and petit jurors, fees and expenses of witnesses approved by the judge, expenses of guardians ad litem, expenses of elections, and other expenses of court operations. The cash advances shall be administered under the provisions of section 466 of this title.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2005, No. 93 (Adj. Sess.), § 83, eff. March 3, 2006; 2009, No. 154 (Adj. Sess.), § 190.

§ 470. Repealed. 2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.

§ 471. Repealed. 1959, No. 328 (Adj. Sess.), § 35(h).

§§ 472, 473. Repealed. 2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.

§ 474. Repealed. 1991, No. 257 (Adj. Sess.), § 9.

§ 475. Disasters on State properties.

The Commissioner of Finance and Management is hereby directed to issue his or her warrants, on certificate of the Attorney General that he or she has authorized the services or expenditures, in the following cases:

1. to fire departments or municipalities maintaining the same, for services rendered by them in fighting fires, except forest fires, which are provided for in 10 V.S.A. §§ 1485 , 1486, and 1487, or dealing with disasters on State-owned or -operated properties; and
2. for services rendered and expenses incurred in operations directed at the recovery of bodies or persons lost or perished by reason of disasters or drowning.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1963, No. 97 ; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.

§ 476. Rebate of income earned from investment or reinvestment of bond proceeds to the U.S. Treasury Department.

Subject only to the approval of the Governor, the Commissioner of Finance and Management shall issue his or her warrant for payment to the U.S. Treasury Department or any other agency of the United States of all or any portion of the income received by the State from the investment or reinvestment of the proceeds of any bonds issued by the State in such amount and to the extent necessary to ensure that interest on bonds issued by the State is not included in gross income of the recipients thereof for federal income tax purposes.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 6, eff. April 18, 1986; amended 1987, No. 36 , § 7; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.

§ 501. Repealed. 1997, No. 147 (Adj. Sess.), § 261b.

§ 502. Monies to be paid over without deduction.

1. The gross amount of money received in their official capacities by every administrative department, board, officer, or employee, from whatever source, shall be paid forthwith to the State Treasurer, or deposited according to the direction of the State Treasurer in such bank to the credit of the State Treasurer as the Treasurer shall designate, without any deduction on account of salaries, fees, costs, charges, expenses, claim, or demand of any description whatsoever, unless otherwise provided. Such monies shall be credited to such funds as are now or may hereafter be designated for the deposit thereof. Money so paid and all monies belonging to or for the use of the State shall not be expended or applied by any department, board, officer, or employee, except in accordance with the provisions of section 462 of this title.
2. [Repealed.]
3. Notwithstanding subsection (a) of this section, bank charges directly related to the investment, management, and custodial services for State funds may be applied against any related investment earnings resulting from the investment, management, and custodial services provided by the financial institution. Such charges shall include only those direct fees charged by financial institutions and as expressly approved by the State Treasurer. The State Treasurer shall obtain and retain detailed monthly statements from each respective financial institution of all charges assessed and such reports shall be available for audit by the Auditor of Accounts.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 81 , § 2; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1995, No. 178 (Adj. Sess.), § 266; 1997, No. 66 (Adj. Sess.), § 65, eff. Feb. 20, 1998; 2005, No. 215 (Adj. Sess.), § 60a.

§ 503. Payment of monies into Treasury.

Quarterly and oftener if the Commissioner of Finance and Management so directs, Superior Court clerks and other collectors and receivers of public money, except justices, shall pay all such money collected or held by them into the State Treasury.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), §§ 8(c), 21(a); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 191.

§ 504. Fines paid to Superior Court clerk.

Damages and costs received in actions to which the State is a party, and fines and the amount of bonds and recognizances to the State taken in any county, shall be paid to the Superior Court clerk. His or her receipt shall be the only valid discharge thereof and he or she shall pay the same into the State Treasury.

HISTORY: Amended 1969, No. 131 , § 29, eff. April 23, 1969; 2009, No. 154 (Adj. Sess.), § 192.

§ 505. Repealed. 2009, No. 33, § 83(m)(3).

§ 506. Failure of Superior Court clerk to pay over.

If a Superior Court clerk neglects to make a return or pay into the State Treasury any money as provided in this chapter, the Commissioner of Finance and Management shall forthwith notify the State’s Attorney, who shall immediately prosecute the clerk and the sureties on his or her official bond.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess. ), § 5(b); 1987 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 193.

§ 507. Repealed. 2003, No. 122 (Adj. Sess.), § 294a.

§ 508. Receipts given by State officers.

State officers, except Superior Court clerks and Superior judges, and every person in the employ of the State under salary or per diem established by statute, receiving money belonging to or for the use of the State, shall give the person paying such money a receipt therefor in such form as shall be prescribed by the State Treasurer.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1967, No. 154 , § 2; 1971, No. 47 ; 2009, No. 154 (Adj. Sess.), § 194.

§ 509. Overpayment; refund.

An officer of the State, a board, or commission receiving money in payment of an obligation due the State, the board, or commission, when an overpayment is made, shall forthwith refund to that person the amount of such overpayment when demand is made; however, there shall be no obligation to refund sums in the amount of $1.00 or less. A person who has made such overpayment to the State, a board, or commission may recover the amount of the money in a civil action on this statute. A warrant for payment shall issue accordingly.

HISTORY: Added 1959, No. 251 , eff. June 10, 1959; amended 1981, No. 248 (Adj. Sess.), § 313, eff. May 6, 1982.

§ 509a. Judiciary overpayment; refund.

Notwithstanding the provisions of section 509 of this title, when a person who owes money to the Judiciary makes an overpayment, the Judiciary shall forthwith refund to that person the amount of such overpayment; however, there shall be no obligation to refund sums in the amount of $10.00 or less. If a person is owed a refund of more than $10.00 and cannot be located by the Judiciary, the refund shall be submitted to the abandoned property procedure. For refunds of $10.00 or less that are not demanded by the person within a year after the payment, the refund shall revert to the State and be deposited into the revenue fund where the original payment was deposited.

HISTORY: Added 2007, No. 51 , § 7.

§ 510. Appropriation; federal funds; Public Service Department receipts.

All monies received from the United States government are appropriated to the purposes specified in the Acts of Congress under which those payments are made to the State of Vermont. The Commissioner of Finance and Management may anticipate receipts from the United States government, and from the gross revenue tax fund and from the sales of power by the Public Service Department and issue warrants based thereon. Anticipated receipts shall be credited to the proper account when received.

HISTORY: Added 1997, No. 147 (Adj. Sess.), § 257.

§ 511. Excess receipts.

If any receipts, including federal receipts, exceed the appropriated amounts, the receipts may be allocated and expended on the approval of the Commissioner of Finance and Management. If, however, the expenditure of those receipts will establish or increase the scope of the program, which establishment or increase will at any time commit the State to the expenditure of State funds, they may only be expended upon the approval of the General Assembly. Excess federal receipts, whenever possible, shall be utilized to reduce the expenditure of State funds. The Commissioner of Finance and Management shall report to the Joint Fiscal Committee quarterly with a cumulative list and explanation of the allocation and expenditure of such excess receipts. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.

HISTORY: Added 1997, No. 147 (Adj. Sess.), § 261; amended 2009, No. 67 (Adj. Sess.), § 83, eff. Feb. 25, 2010; 2013, No. 142 (Adj. Sess.), § 60.

§§ 521-525. Repealed. 1987, No. 243 (Adj. Sess.), § 61, eff. June 13, 1988.

§§ 526-528. Repealed. 2009, No. 154 (Adj. Sess.), § 238.

§ 541. Collection of fines and costs.

All fines; costs, including costs taxed as State’s Attorneys’ and court fees; bail; and unclaimed fees collected by judges shall be paid into the proper treasury.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 195.

§ 542. Payment to Treasurer.

The judge or clerk of each Criminal Division of the Superior Court shall quarterly, on or before the first day of February, May, August, and November, pay into the State Treasury all money in his or her hands belonging to the State.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.

§ 543. Repealed. 2009, No. 33, § 83(m)(4).

§ 544. Judge may pay witnesses.

The judge or clerk of each Criminal Division of the Superior Court shall pay from any fines and costs in his or her hands belonging to the State all juror and witness fees payable by the State and shall take the receipts of persons receiving the same.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.

§ 561. Repealed. 2009, No. 33, § 83(m)(5).

§ 581. Unclaimed costs to revert to State.

Fees allowed in a bill of costs to a judge that are not demanded by the party to whom such fees are due within six months after such bill is allowed shall revert to the use of the State, and the judge, after the expiration of six months, shall be relieved from all liability to parties to whom the fees were due.

HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 196.

§ 582. Sale of meals; revolving fund.

Superintendents of institutions in the Departments of Corrections and of Mental Health and the Vermont Veterans’ Home may sell meals prepared under their food service programs to employees, officials, visitors, and other necessary persons participating in institutional programs. Rates for meals and food issue sold shall be reasonably related to costs. Proceeds from these sales may be deposited to a separate special fund for each institution and may be used for food supplies.

HISTORY: Added 1979, No. 205 (Adj. Sess.), § 151, eff. May 9, 1980; amended 1997, No. 155 (Adj. Sess.), § 23.

§ 583. Credit card payments.

1. A statewide officer or secretary of a State agency, commissioner of a State department, or the Court Administrator may accept payment of taxes, registration fees, license fees, penalties, fines, interest, charges, surcharges, or any other fees or amounts due the State by means of credit cards, debit cards, charge cards, prepaid cards, stored value cards, and direct bank account withdrawals or transfers.
2. The State Treasurer shall negotiate and contract with banks and bank credit card companies or others to provide as a method of payment to State agencies or departments the use of credit card or debit card accounts or direct bank account withdrawals or transfers and may agree to pay such bank or other company a fee or percentage of the amount collected and remitted to the State. The Court Administrator may so contract for the Judiciary with the approval of the State Treasurer. Notwithstanding section 502 of this title, an agency, a department, or the Judiciary may charge against such collections the percentage or fee imposed.
3. The State Treasurer shall assist each statewide officer, secretary, commissioner, and Court Administrator who elects to accept payments, as authorized by this section, with establishing procedures for accepting those payments.
4. A statewide officer or secretary of a State agency, a commissioner of a State department, or the Court Administrator who has authority to accept payment of fees, penalties, fines, charges, surcharges, or any other amounts due the State by a credit card, debit card, charge card, prepaid card, or stored value card shall not charge or collect any additional amounts for using such card to make the payment unless the agency develops a policy regarding additional charges. Each policy and recommended charge, except that which is adopted and recommended by the Court Administrator, shall be approved by the Secretary of Administration prior to applying the charge. Any such charge shall approximate the cost of providing the service.
5. [Repealed.]

HISTORY: Added 1997, No. 155 (Adj. Sess.), § 66c; amended 2003, No. 61 , §§ 1, 5; 2007, No. 51 , § 8; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012.

§ 584. Vermont Clean Water Affinity Card Program.

1. The State Treasurer is hereby authorized to sponsor and participate in an Affinity Card Program for the benefit of water quality improvement in this State upon his or her determination that such a Program is feasible and may be procured at rates and terms in the best interests of the cardholders.
2. In selecting an affinity card issuer, the Treasurer shall consider the issuer’s record of investments in the State and shall take into consideration program features that will enhance the promotion of the State-sponsored affinity card, including consumer-friendly terms, favorable interest rates, annual fees, and other fees for using the card.
3. The net proceeds of the State fees or royalties generated by the Vermont Clean Water Affinity Card Program shall be transmitted to the State and shall be deposited into the Clean Water Fund under 10 V.S.A. § 1388 to provide financial incentives to encourage farmers in Vermont to implement agricultural practices that improve soil health, enhance crop resilience, or reduce agricultural runoff to waters.
4. The State shall not assume any liability for lost or stolen credit cards nor any other legal debt owed to the financial institutions.
5. The State Treasurer is authorized to adopt such rules as may be necessary to implement the Vermont Clean Water Affinity Card Program.

HISTORY: Added 2009, No. 1 (Sp. Sess.), § H.18, eff. June 2, 2009; amended 2011, No. 139 (Adj. Sess.), § 33, eff. May 14, 2012; 2019, No. 83 , § 4.

§ 585. Definitions.

1. As used in this subchapter:
   1. “Commissioner” means the Commissioner of Finance and Management.
   2. A “special fund” is a fund created to account for specific revenues earmarked to finance particular or restricted programs and activities, or created by expressed enactment of the General Assembly or created by the Commissioner of Finance and Management to account for and manage such proceeds as those of court settlements or private bequests, transfers between State and local governments, monies of State institution inmate or patient operations, monies resulting from the disposal of State property, grants and other awards accepted by the General Assembly or in accordance with section 5 of this title, transfers of a general services nature between State agencies, or financial transactions by State government on behalf of nonstate entities.
2. The Commissioner shall fully utilize the fund and account structure in the State finance system to manage efficiently dedicated revenues, with the intended result of reducing and limiting the number of separate special funds, while maintaining accountability and segregation of revenues dedicated by statute for specific purposes.

HISTORY: Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59 , § 79, eff. June 30, 1997; 2005, No. 215 (Adj. Sess.), § 283.

§ 586. Application.

The provisions of this subchapter shall not apply to funds established to account for proceeds from the sale of bonds; to the General Fund, the Transportation Fund, the Fish and Wildlife Fund, the Tobacco Litigation Settlement Fund; or to any federal revenue funds, trust funds, enterprise funds, internal service funds, or agency funds; or to public service enterprise funds established to implement provisions of 30 V.S.A. §§ 211 and 212a through 212f, the budget stabilization reserves created by sections 308 and 308a of this title, the Low-Level Radioactive Waste Fund created by 10 V.S.A. § 7013 , the Lands and Facilities Trust Fund created by 3 V.S.A. § 2807 , the Education Fund created by 16 V.S.A. § 4025 , or the Vermont Housing and Conservation Trust Fund created by 10 V.S.A. § 312 .

HISTORY: Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1993, No. 25 , § 76, eff. May 18, 1993; 1997, No. 59 , § 80, eff. June 30, 1997; 1997, No. 60 , § 20, eff. July 1, 1998; 1997, No. 64 , § 19, eff. Jan. 1, 1998; 1999, No. 62 , § 275b; 2001, No. 61 , § 54, eff. June 16, 2001; 2001, No. 63 , § 230a; 2013, No. 1 , § 86.

§ 587. Special funds; creation and termination.

1. Creation of special funds.   The creation of all special funds shall be in accordance with the provisions of this subchapter.
2. Termination of special funds.   All special funds shall be terminated at a time specified as a condition of the fund’s creation, when the revenue source of the fund ceases to exist, or when the purpose of the fund has been fulfilled as determined by the General Assembly.

HISTORY: Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59 , § 81, eff. June 30, 1997.

§ 588. Special funds; organization and management.

All special funds shall be organized and managed in accordance with the provisions of this section.

1. Purpose and identification.   Each special fund shall be established for a specific purpose, identified by a unique name, and managed on the State Central Accounting System under the control of the Commissioner with the actual monies held under the authority and responsibility of the State Treasurer.
2. Receipts.   Each special fund shall consist of receipts specified upon its creation and of transfers from other funds as authorized by the General Assembly or by the Secretary of Administration or the Emergency Board pursuant to section 706 of this title.
3. Interest.   All interest earned by a special fund shall be credited to the General Fund, and not to the special fund concerned, except for the interest earned on proceeds of court settlements or private bequests, grants and other awards accepted in accordance with section 5 of this title that specify that interest shall be retained with the principal amount, and except where otherwise expressly provided by law.
4. Appropriations and expenditures.
   1. All monies to be expended from a special fund shall be appropriated annually by the General Assembly, or allocated pursuant to the authority granted by the General Assembly to the Commissioner of Finance and Management with regard to excess receipts, except when the State responsibility relative to the special fund is solely for the transference of monies between nonstate entities as determined by the Commissioner. No appropriation authorization shall carry forward beyond the fiscal year for which it was granted, except for properly encumbered payments and refunds of prior year expenditures.
   2. Individual amounts expended from a special fund shall be upon the warrant of and in accordance with practices approved by the Commissioner and shall be in compliance with the purpose of the fund and of any provisions of law or other conditions of the fund’s creation.
   3. Special fund expenditures shall not exceed available revenues, except that the Commissioner may anticipate receipts to each special fund and issue warrants based thereon, and in so doing may establish limits on expenditures in anticipation of receipts for any special fund.
5. Balances.
   1. All cash balances in a special fund at the end of the fiscal year shall be carried forward and remain in the fund unspent until authorized for expenditure in accordance with subdivision (4)(A) of this section or transferred to another fund by the General Assembly or by the Secretary of Administration or the Emergency Board pursuant to section 706 of this title.
   2. Any negative cash balance in a special fund at the end of a fiscal year shall be carried forward and applied against that fund’s receipts for the next fiscal year.
6. Accounting and reporting.
   1. Each special fund shall be accounted for under the direction of the Commissioner, and the balance at the end of the prior fiscal year shall be reported to the Joint Fiscal Committee on or before December 1 of each year.
   2. In addition, the Commissioner shall annually report a list of any special funds created during the fiscal year. The list shall furnish for each fund its name, authorization, and revenue source or sources. The report for the prior fiscal year shall be submitted to the General Assembly through the Joint Fiscal Committee on or before December 1 of each year.

HISTORY: Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59 , § 82, eff. June 30, 1997; 2005, No. 71 , § 270; 2007, No. 65 , § 392, eff. June 4, 2007; 2009, No. 67 (Adj. Sess.), § 84, eff. Feb. 25, 2010.

§ 589. Repealed. 1997, No. 59, § 83(1), eff. June 30, 1997.

§ 590. Repealed. 1997, No. 59, § 83(2), eff. June 30, 1997.

§ 601. Statement of purpose.

It is the purpose of this subchapter to establish a uniform policy on the creation and review of Executive and Judicial Branch fees and to require that any such fee be created solely by the General Assembly.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22.

§ 602. Definitions.

As used in this subchapter:

1. “Agency” or “State agency” means any Executive Branch agency, department, or entity created by Title 3 and any board, commission, council, or similar entity attached to an Executive Branch agency, department, or entity.
2. “Fee”:
   1. Means a monetary charge by an agency or the Judiciary for a service or product provided to, or the regulation of, specified classes of individuals or entities.
   2. The following charges are exempt from the provisions of this subchapter:
      1. a charge established under the jurisdiction of the Public Utility Commission as provided by 30 V.S.A. §§ 20 , 21, and 218;
      2. a charge established by the Board of Liquor and Lottery as provided by Title 7;
      3. a duly adopted charge concerning only inmates of a correctional or detention facility, students enrolled in an educational institution, or patients admitted to a hospital or rehabilitation facility;
      4. monies paid into an enterprise or internal service fund;
      5. a transfer between agencies of State government or between State government and a political subdivision, as compensation for a service, to support a regulatory activity, or to account for surplus property;
      6. monies from interest and premium payments, rent or lease payments, proceeds of fair market or negotiated sales, or sales of commercially available items;
      7. except for the purposes of section 605 of this title, motor vehicle and other highway user fees authorized by the General Assembly for the support of the Transportation Fund;
      8. a charge established by the Department of Financial Regulation as authorized by law; and
      9. any other charge exempt by law.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59 , § 1, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 1; 2005, No. 175 (Adj. Sess.), § 43; 2007, No. 153 (Adj. Sess.), § 22; 2007, No. 174 (Adj. Sess.), § 30; 2013, No. 72 , § 31; 2015, No. 149 (Adj. Sess.), § 34; 2019, No. 73 , § 41.

§ 603. Fee creation, amount, and adjustment of amount.

On or after May 22, 1996:

1. Any new fee shall be established solely by act of the General Assembly, which shall designate the service or product provided, or regulatory function performed, for which the fee is to be charged.
2. The rate or amount of, or adjustment to, any fee shall be set by act of the General Assembly, except that the rate or amount, whether established by statute or rule, shall be adjusted by action of the Joint Fiscal Committee, if projected revenues, as demonstrated by the agency head proposing the adjustment, are reasonably related to the cost of providing the associated service or product or performing the regulatory function. “Cost” shall be narrowly construed but may include reasonable and directly related costs of administration, maintenance, and other expenses due to providing the service or product or performing the regulatory function. If submitted to the Joint Fiscal Committee, a requested fee adjustment shall be considered approved unless within 30 days of its receipt a member of the Joint Fiscal Committee requests that it be placed on the agenda of the Joint Fiscal Committee or, when the General Assembly is in session, requests that it be submitted for legislative approval. The provisions of this subdivision shall not be construed to supersede the actual cost charges for copies of public records as established pursuant to 1 V.S.A. § 316 .
3. Fees for the following, unless otherwise specified by law, may be set by the department providing the service or product, and shall be reasonably and directly related to their costs, as provided in subdivision (2) of this section:
   1. transcripts;
   2. reproductions not covered by 1 V.S.A. § 316(d) ;
   3. conferences;
   4. forms for commercial use;
   5. publications of the department;
   6. costs of distribution of department materials;
   7. advertising for department services or products;
   8. training;
   9. charges to attend one-time department events; and
   10. sales of department products.
4. Fees collected under subdivision (3) of this section shall be credited to special funds established and managed pursuant to chapter 7, subchapter 5 of this title, and shall be available to the charging departments to offset the costs of providing these services or products. However, for purposes of fees established under this subdivision for copies of public records, the fees shall be calculated as provided in 1 V.S.A. § 316 . These fees shall be reported in accordance with section 605 of this title.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59 , § 2, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 2; 2007, No. 153 (Adj. Sess.), § 25.

§ 604. Section 604 repealed effective July 1, 2022. Electric vehicle supply equipment fees.

Notwithstanding any other provision of this subchapter, any agency or department that owns or controls electric vehicle supply equipment, as defined in 30 V.S.A. § 201 , may establish, set, and adjust fees for the use of that electric vehicle supply equipment. The agency or department may establish fees for electric vehicle charging at less than its costs, to cover its costs, or equal to the retail rate charged for the use of electric vehicle supply equipment available to the public. Fees collected under this section shall be deposited in the same fund or account within a fund from which the electric operating expense for the electric vehicle supply equipment originated.

HISTORY: Added 2019, No. 59 , § 37; repealed on July 1, 2022 by 2019, No. 59 , § 38.

§ 605. Consolidated Executive Branch annual fee report and request.

1. The Governor shall, no later than the third Tuesday of every annual legislative session, submit a consolidated Executive Branch fee report and request to the General Assembly, which shall accompany the Governor’s annual budget report and request submitted to the General Assembly as required by section 306 of this title, except that the first fee report shall be submitted by October 1, 1996 to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The first fee request shall be submitted during the 1997 session as provided herein. The content of each annual report and request for fees concerning State agency public records maintained pursuant to 1 V.S.A. chapter 5, subchapter 3 shall be prepared by the Secretary of State, who shall base all recommended fee amounts on “actual cost.” The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
2. Fee reports shall be made as follows:
   1. A report covering all fees in existence on the prior July 1 within the areas of government identified by the Department of Finance and Management accounting system as “general government,” “labor,” “general education,” “commerce and community development,” and “transportation” shall be submitted by the third Tuesday of the legislative session beginning in 2011 and every three years thereafter.
   2. A report covering all fees in existence on the prior July 1 within the “human services” and “natural resources” areas of government shall be submitted by the third Tuesday of the legislative session of 2012 and every three years thereafter.
   3. A report covering all fees in existence on the prior July 1 within the “protection to persons and property” area of government shall be submitted by the third Tuesday of the legislative session of 2013 and every three years thereafter.
3. A fee report shall contain for each fee in existence on the preceding July 1:
   1. its statutory authorization and termination date if any;
   2. its current rate or amount and the date this was last set or adjusted by the General Assembly or by the Joint Fiscal Committee;
   3. the fund into which its revenues are deposited;
   4. the revenues derived from it in each of the two previous fiscal years; and
   5. whether the Governor recommends the fee be altered, reauthorized, or terminated.
4. A fee request shall contain any proposal to:
   1. Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services or product provided or the regulatory function performed.
   2. Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
      1. the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee, with costs construed pursuant to subdivision 603(2) of this title;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
   3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
5. As used in the review and reports, a “fee” shall mean any source of State revenue classified by the Department of Finance and Management Accounting System as “fees,” “business licenses,” “nonbusiness licenses,” and “fines and penalties.” In addition, the Department of Finance and Management shall identify any of the other State revenue sources that function in fact as a “fee” and reclassify them as fees.
6. [Repealed.]

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59 , §§ 3a, 4, eff. June 30, 1997; 2005, No. 202 (Adj. Sess.), § 23b; 2007, No. 153 (Adj. Sess.), § 22; 2007, No. 174 (Adj. Sess.), § 29; 2009, No. 134 (Adj. Sess.), § 34; 2013, No. 72 , § 36; 2013, No. 142 (Adj. Sess.), § 61; 2013, No. 191 (Adj. Sess.), § 22.

§ 605a. Consolidated Judicial Branch fee report and request.

1. Subsection (a) effective until July 1, 2022; see also subsection (a) effective July 1, 2022 set out below.

   The Justices of the Supreme Court or the Court Administrator if one is appointed pursuant to 4 V.S.A. § 21 , in consultation with the Justices of the Supreme Court, shall submit a consolidated Judicial Branch fee report and request no later than the third Tuesday of the legislative session of 2011 and every three years thereafter. The report shall be submitted to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

   (a)

   Subsection (a) effective July 1, 2022; see also subsection (a) effective until July 1, 2022 set out above.

   The Justices of the Supreme Court or the Court Administrator if one is appointed pursuant to 4 V.S.A. § 21 , in consultation with the Justices of the Supreme Court, shall submit a consolidated Judicial Branch fee report and request not later than the third Tuesday of the legislative session of 2011 and every three years thereafter. The report shall be submitted to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

2. A fee report shall contain for each fee in existence on the preceding July 1:
   1. its statutory authorization and termination date if any;
   2. its current rate or amount and the date this was last set or adjusted by the General Assembly or by the Joint Fiscal Committee;
   3. the fund into which its revenues are deposited; and
   4. the revenues derived from it in each of the two previous fiscal years.
3. A fee request shall contain any proposal to:
   1. Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services provided or the function performed.
   2. Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
      1. the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee, with costs construed pursuant to subdivision 603(2) of this title;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
   3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
4. For the purpose of the review and report, a “fee” shall mean any source of State revenue classified by the Department of Finance and Management accounting system as “fees.”

5. Subsection (e) effective July 1, 2022.

   Notwithstanding any other provision of law, the consolidated Judicial Branch fee report and request described in this section shall include any Judicial Branch fees associated with electronic filing and any proposals to reauthorize, change, or terminate any Judicial Branch fees associated with electronic filing.

HISTORY: Added 2007, No. 153 (Adj. Sess.), § 22; amended 2013, No. 142 (Adj. Sess.), § 62; 2021, No. 23 , § 1, eff. July 1, 2022.

§ 606. Legislative fee review process; fee bill.

When the consolidated fee reports and requests are submitted to the General Assembly pursuant to sections 605, 605a, and 611 of this title, they shall immediately be forwarded to the House Committee on Ways and Means, which shall consult with other standing legislative committees having jurisdiction of the subject area of a fee contained in the reports and requests. As soon as possible, the Committee on Ways and Means shall prepare and introduce a “consolidated fee bill” proposing:

1. The creation, change, reauthorization, or termination of any fee.
2. The amount of a newly created fee, or change in amount of an existing or reauthorized fee.
3. The designation, or redesignation, of the fund into which revenue from a fee is to be deposited.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22; 2017, No. 155 (Adj. Sess.), § 2.

§ 611. Consolidated town fee report and request.

1. As used in this section:
   1. “Cost” shall be narrowly construed and may include reasonable and directly related costs of administration, maintenance, and other expenses due to providing the service or product or performing the regulatory function.
   2. “Fee” means a monetary charge collected by or on behalf of a town for a service or product provided to, or the regulation of, specified classes of individuals or entities.
   3. “Town” means a town, city, unorganized town or gore, and the unified towns and gores in Essex County.
2. On or before the third Tuesday of the legislative session of 2019 and every three years thereafter, the Vermont Municipal Clerks’ and Treasurers’ Association and the Vermont League of Cities and Towns shall jointly submit a consolidated town fee report and request. The report shall be submitted to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
3. For each fee in existence on the preceding July 1, the report shall specify:
   1. its statutory authorization and termination date, if any;
   2. its current rate or amount and the date it was last set or adjusted by the General Assembly;
   3. the fund into which its revenues are deposited; and
   4. for each town, in each of the two previous fiscal years, the revenues derived from each fee.
4. The report shall contain:
   1. an account of the amounts retained and spent from each town’s Restoration and Preservation Reserve Fund in the three prior fiscal years; and
   2. a summary of each town’s plan to digitize records using funds appropriated from the town’s Restoration and Preservation Reserve Fund.
5. A fee request shall contain any proposal to:
   1. Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services provided or the function performed.
   2. Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
      1. the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
   3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.

HISTORY: Added 2017, No. 155 (Adj. Sess.), § 3; amended 2019, No. 38 , § 1.

§ 621. Statement of purpose.

It is the purpose of this subchapter to establish a procedure by which the pension benefits of a public employee convicted of certain crimes may be forfeited. Honorable public service is a condition precedent for a public employee to receive retirement benefits, and any public employee who is convicted of any of the designated crimes relating to his or her public office shall be considered to have served dishonorably, and his or her retirement benefits may be subject to forfeiture.

HISTORY: Added 2013, No. 2 , § 1.

§ 622. Definitions.

As used in this subchapter:

1. “Contribution” shall have the same meaning as “accumulated contribution” set forth in 3 V.S.A. § 455(a)(1) , 16 V.S.A. § 1931(1) , and 24 V.S.A. § 5051(1) and shall include the sum of all amounts deducted from the compensation of a member of any defined contribution plan under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and any earnings or losses on those contributions, and the sum of all amounts deducted from the compensation of a member of any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401 and any earnings or losses on those contributions.
2. “Crime related to public office” means any of the following criminal offenses if the offense is a felony and is committed in connection with employment as a member:
   1. any offense under 13 V.S.A. chapter 21;
   2. false personation as defined in 13 V.S.A. § 2001 ;
   3. false pretenses or tokens as defined in 13 V.S.A. § 2002 ;
   4. grand larceny as defined in 13 V.S.A. § 2501 ;
   5. person holding property in official capacity or belonging to the State or a municipality as defined in 13 V.S.A. § 2537 ;
   6. false claim as defined in 13 V.S.A. § 3016 ;
   7. a felony under the laws of the United States or any other state, including a territory; commonwealth; the District of Columbia; or military, federal, or tribal court, an element of which involves:
      1. a larceny;
      2. an embezzlement;
      3. the fraudulent conversion of money, property, or other valuable things for personal or other use; or
      4. an intent to defraud; or
   8. an attempt to commit, or aiding in the commission of, any offense listed in this subdivision (2).
3. “Member” shall have the same meaning as in 3 V.S.A. § 455(a)(11) , 16 V.S.A. § 1931(10) , and 24 V.S.A. § 5051(13) and shall include anyone participating in a defined contribution plan under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401.
4. “Retirement benefits” shall have the same meaning as “pensions” as defined in 3 V.S.A. § 455(a)(14) , 16 V.S.A. § 1931(12) , and 24 V.S.A. § 5051(16) and shall also mean benefits derived from employer contributions to defined contribution plans under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and benefits derived from employer contributions to any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401.

HISTORY: Added 2013, No. 2 , § 1.

§ 623. Forfeiture of public employee retirement benefits.

1. Honorable public service is a condition precedent to receiving retirement benefits. Each time a member is hired, reassigned, promoted, demoted, enters into a new collective bargaining contract, or otherwise changes his or her employment relationship or status, he or she shall be deemed to consent and agree to be subject to the provisions of this subchapter, including to this condition precedent.
2. Notwithstanding any other provision of law to the contrary, any member who is convicted of any crime related to public office shall be considered to have served dishonorably, and his or her retirement benefits may be subject to forfeiture.
3. If a member is convicted of a crime related to public office, the Attorney General or State’s Attorney shall file an action in the Civil Division of the Superior Court to forfeit the member’s retirement benefits in whole or in part.
4. A copy of the complaint shall be served on the member and any known spouse, dependent, or designated beneficiary of the member.
5. Hearings under this subchapter shall be conducted by the Court without a jury, and the Attorney General or State’s Attorney shall have the burden of proof.
6. The Court shall grant the petition if it finds by a preponderance of the evidence that:
   1. the person is a member as defined in this subchapter; and
   2. the person was convicted of a crime related to public office.
7. If the Court grants the petition, it shall then determine the degree, if any, to which the member’s retirement benefits shall be forfeited. In making the determination, the Court shall consider and make findings on the following factors:
   1. the severity of the crime related to public office for which the member has been convicted;
   2. the amount of monetary loss suffered by the State, a county, a municipality, or by any other person as a result of the crime related to public office;
   3. the degree of public trust reposed in the member; and
   4. any other factors as, in the judgment of the Court, justice may require.
8. If the Court determines that a member’s retirement benefits should be forfeited to any degree, the maximum value of the benefits ordered forfeited shall not be greater than 10 times the amount of monetary loss suffered by the State, a county, a municipality, or by any other person as a result of the crime related to public office.
9. If the Court determines that a member’s retirement benefits should be forfeited to any degree, it may order that some or all of the retirement benefits be paid to any innocent spouse, dependent, or beneficiary as justice may require. In determining whether to make an award under this section, the Court may consider:
   1. the degree of knowledge, if any, possessed by the member’s spouse, dependent, or designated beneficiary in connection with the offense;
   2. the financial needs and resources of the member’s spouse, dependent, or designated beneficiary; and
   3. any other factors as, in the judgment of the Court, justice may require.
10. If the Court determines that a member’s retirement benefits should not be forfeited to any degree, it shall order that retirement benefits be made to the member.

HISTORY: Added 2013, No. 2 , § 1.

§ 624. Venue, procedure, and appeals.

1. Proceedings to forfeit retirement benefits under this subchapter shall be heard in the Civil Division of the Superior Court. Venue may be in the Washington unit, the unit where the conviction for the crime related to public office occurred, or in any unit where the member or any known spouse, dependent, or designated beneficiary resides.
2. The Supreme Court, pursuant to 12 V.S.A. § 1 , may enact rules and develop procedures consistent with this subchapter to govern proceedings to forfeit retirement payments.
3. An order under this subchapter may be appealed as a matter of right to the Supreme Court by the Attorney General or State’s Attorney that filed the petition, the member, or the member’s spouse, dependent, or designated beneficiary.

HISTORY: Added 2013, No. 2 , § 1.

§ 625. Return of contributions; exemptions; qualified domestic relations orders.

1. Any member whose retirement benefits are forfeited to any degree pursuant to section 623 of this title shall be entitled to a return of his or her contribution in the same manner as provided by the relevant retirement system.
2. Notwithstanding the provisions of subsection (a) of this section, returns of contributions shall not be made or ordered unless and until the Civil Division of the Superior Court determines that the member whose retirement benefits have been forfeited to any degree pursuant to section 623 of this title has satisfied in full any judgments or orders rendered by any court of competent jurisdiction for the payment of restitution for losses incurred as a result of the crime related to public office. If the Court determines that the member whose retirement benefits have been forfeited to any degree under section 623 has failed to satisfy any outstanding judgment or order of restitution rendered by any court of competent jurisdiction that relates to the crime related to public office of which the member was convicted, it may order that any funds otherwise due such member as a return of contribution, or any portion thereof, be paid in satisfaction of the judgment or order.
3. A provision of section 623 of this title or this section shall not be construed to prohibit or limit any payment made pursuant to a qualified domestic relations order issued prior to any such conviction and applicable to:
   1. any member who is convicted of any crime related to public office; or
   2. any State, county, or municipal agency responsible for the administration of such payment on behalf of such member.
4. Notwithstanding the provisions of section 623 of this title, retirement benefits shall not be forfeited to any degree if the Internal Revenue Service determines that such forfeiture will negatively affect or invalidate the status of a retirement plan under the Internal Revenue Code, 26 U.S.C. § 401, or any subsequent corresponding Internal Revenue Code of the United States, as may be amended.

HISTORY: Added 2013, No. 2 , § 1.

§ 626. Application; collective bargaining agreements.

1. This subchapter shall not apply to retirement benefits that accrued prior to July 1, 2013 or to crimes committed before July 1, 2013.
2. No collective bargaining agreement or other employment agreement entered into on or after July 1, 2013 shall contain any provision that limits the application of the provisions of this subchapter.

HISTORY: Added 2013, No. 2 , § 1.

§ 630. Definitions.

As used in this chapter:

1. “Claim” means any request or demand, whether under a contract or otherwise, for money or property, and whether or not the State has title to the money or property, that:
   1. is presented to an officer, employee, or agent of the State; or
   2. is made to a contractor, grantee, or other recipient, if the money or property is to be spent or used on the State’s behalf or to advance a State program or interest, and if the State:
      1. provides or has provided any portion of the money or property that is requested or demanded; or
      2. will reimburse directly or indirectly such contractor, grantee, or other recipient for any portion of the money or property that is requested or demanded. A claim shall not include a request or demand for money or property that the State has paid to an individual as compensation for State employment or as an income subsidy with no restrictions on that individual’s use of the money or property.
2. “Knowing” and “knowingly”:
   1. means that a person, with respect to information:
      1. has actual knowledge of the information;
      2. acts in deliberate ignorance of the truth or falsity of the information; or
      3. acts in reckless disregard of the truth or falsity of the information; and
   2. requires no proof of specific intent to defraud.
3. “Material” means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property.
4. “Obligation” means an established duty, whether or not fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee relationship; from a fee-based or similar relationship; from statute or regulation; or from the retention of any overpayment after the deadline for reporting and returning the overpayment under subdivision 631(a)(10) of this chapter.
5. “Original source” means an individual who:
   1. prior to a public disclosure under subsection 636(c) of this chapter, has voluntarily disclosed to the State the information on which allegations or transactions in a claim are based; or
   2. has knowledge that is independent of and materially adds to the publicly-disclosed allegations or transactions, and who has voluntarily provided the information to the State before filing a false claims action.
6. “Overpayment” means any State or federal funds that a person receives or retains to which the person, after applicable reconciliation, is not entitled.
7. “Relator” or “qui tam plaintiff” means an individual who brings an action under subsection 632(b) of this chapter.
8. “State” means the State of Vermont; a county, a municipality, or other subdivision thereof; commission, board, department, or agency thereof; or any other governmental entity authorized or created by State law, including public corporations and authorities.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 631. Prohibition; penalties.

1. No person shall:
   1. knowingly present, or cause to be presented, a false or fraudulent claim for payment or approval;
   2. knowingly make, use, or cause to be made or used, a false record or statement material to a false or fraudulent claim;
   3. knowingly present, or cause to be presented, a claim that includes items or services resulting from a violation of 13 V.S.A. chapter 21 or section 1128B of the Social Security Act, 42 U.S.C. §§ 1320a-7b;
   4. knowingly present, or cause to be presented, a claim that includes items or services for which the State could not receive payment from the federal government due to the operation of 42 U.S.C. § 1396b (s) because the claim includes designated health services (as defined in 42 U.S.C. § 1395n n(h)(6)) furnished to an individual on the basis of a referral that would result in the denial of payment under 42 U.S.C. chapter 7, subchapter XVIII (the “Medicare program”), due to a violation of 42 U.S.C. § 1395n n;
   5. having possession, custody, or control of property or money used, or to be used, by the State, knowingly deliver, or cause to be delivered to the State or its agent, less than all of that property or money for which the person receives a certificate or receipt;
   6. being authorized to make or deliver a document certifying receipt of property used, or to be used, by the State or its agent and, intending to defraud the State, make or deliver the receipt without completely knowing that the information on the receipt is true;
   7. knowingly buy, or receive as a pledge of an obligation or debt, public property from an officer or employee of the State, who lawfully may not sell or pledge the property;
   8. enter into a written agreement or contract with an official of the State or its agent knowing the information contained therein is false;
   9. knowingly make, use, or cause to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the State;
   10. knowingly conceal or knowingly and improperly avoid or decrease an obligation to pay or transmit money or property to the State;
   11. as a beneficiary of an inadvertent submission of a false claim to the State, or as a beneficiary of an overpayment from the State, and who subsequently discovers the falsity of the claim or the receipt of overpayment, fail to disclose the false claim or receipt of overpayment to the State by the later of:
       1. a date that is 120 days after the date on which the false claim or receipt of overpayment was identified; or
       2. the date any corresponding cost report is due, if applicable; or
   12. conspire to commit a violation of this subsection.
2. Any person who violates a provision of subsection (a) of this section shall be liable to the State for:
   1. a civil penalty of not less than $5,500.00 and not more than $11,000.00 for each act constituting a violation of subsection (a) of this section, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. § 2461);
   2. three times the amount of damages that the State sustains because of the act of that person; and
   3. the costs of the investigation and prosecution of such violation.
3. Notwithstanding subdivisions (b)(1) and (b)(2) of this section, the Court may enter judgment for not less than two times the amount of damages that the State sustains because of the act of that person, and assessing no civil penalties, if the Court finds that:
   1. the person committing the violation of subsection (a) of this section furnished officials of the State responsible for investigating false claims violations with all information known to that person about the violation within 30 days after the date on which the person first obtained the information;
   2. the person fully cooperated with any investigation by the State of such violation; and
   3. at the time the person furnished the State with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this subchapter with respect to such violation, and the person did not have actual knowledge of the existence of an investigation into the violation.
4. This chapter shall not apply to claims, records, or statements made or presented to establish, limit, reduce, or evade liability for the payment of tax to the State or other governmental authority.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 632. Civil actions for false claims.

1. The Attorney General shall investigate violations of subsection 631(a) of this chapter. If the Attorney General finds that a person has violated or is violating subsection 631(a), the Attorney General may bring a civil action in the Civil Division of the Superior Court under this section against the person. The action may be brought in Washington County or in any county where an act prohibited by section 631 occurred.
2. 1. A relator may bring a civil action in the Civil Division of the Superior Court in Washington County or in any county where an act prohibited by section 631 of this chapter occurred for a violation of this chapter on behalf of the relator and the State. The action shall be brought in the name of the State. The relator must file the complaint in camera. The complaint must remain under seal for at least 60 days after being served on the Attorney General and must not be served on the defendant until the court so orders. (b) (1) A relator may bring a civil action in the Civil Division of the Superior Court in Washington County or in any county where an act prohibited by section 631 of this chapter occurred for a violation of this chapter on behalf of the relator and the State. The action shall be brought in the name of the State. The relator must file the complaint in camera. The complaint must remain under seal for at least 60 days after being served on the Attorney General and must not be served on the defendant until the court so orders.
   2. Once filed, the action may be dismissed only if the Attorney General gives written reasons for consenting to the dismissal and the court approves the dismissal. Notwithstanding any law to the contrary, it shall not be a cause for dismissal or a basis for a defense that the relator could have brought another action based on the same or similar facts under any other law.
   3. A relator filing an action under this chapter must serve a copy of the complaint and written disclosure of substantially all material evidence and information the relator possesses on the Attorney General in accordance with the Rules of Civil Procedure. The Attorney General may elect to intervene and proceed with the action within 60 days after the later of the date the Attorney General is served with:
      1. the complaint; and
      2. the material evidence and information.
   4. The Attorney General may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under subdivision (b)(1) of this section. Any such motions may be supported by affidavits or other submissions in camera.
   5. Before the expiration of the 60-day period or any extensions obtained under subdivision (4) of this subsection, the State shall:
      1. proceed with the action, in which case the action shall be conducted by the Attorney General; or
      2. notify the court that it declines to take over the action, in which case the relator shall have the right to conduct the action.
   6. When a relator brings an action under this subsection, no person other than the Attorney General may intervene or bring a related action based on the facts underlying the pending action.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 633. Rights of the parties to qui tam actions.

1. If the State proceeds with the action, the Attorney General shall have the primary responsibility for prosecuting the action and shall not be bound by any act of the relator. The relator shall have the right to continue as a party to the action, subject to the limitations in subsection (b) of this section.
2. 1. The Attorney General may move to dismiss the action if the relator has been notified by the Attorney General of the filing of the motion and the court has provided the relator with an opportunity for a hearing on the motion. (b) (1) The Attorney General may move to dismiss the action if the relator has been notified by the Attorney General of the filing of the motion and the court has provided the relator with an opportunity for a hearing on the motion.
   2. Notwithstanding any objection of a relator, the Attorney General may settle the action with the defendant if after a hearing the court determines that the proposed settlement is fair, adequate, and reasonable under all the circumstances.
   3. Upon a showing by the Attorney General that unrestricted participation during the course of the litigation by the relator would interfere with or unduly delay the prosecution of the case or would be repetitious, irrelevant, or for purposes of harassment, the court may, in its discretion, impose limitations on the relator’s participation, such as:
      1. limiting the number of witnesses the relator may call;
      2. limiting the length of the testimony of such witnesses;
      3. limiting the relator’s cross-examination of witnesses; or
      4. otherwise limiting the participation by the relator in the litigation.
   4. Upon a showing by the defendant that unrestricted participation during the course of the litigation by the relator would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the participation by the relator in the litigation.
3. If the Attorney General elects not to proceed with the action, the relator who initiated the action shall have the right to conduct the action. If the Attorney General so requests, it shall be served with copies of all pleadings filed in the action in accordance with the Rules of Civil Procedure and shall be supplied with copies of all deposition transcripts at the State’s expense. When a relator proceeds with the action, the court, without limiting the status and rights of the relator, may nevertheless permit the Attorney General to intervene at a later date upon a showing of good cause.
4. Whether or not the Attorney General proceeds with the action, upon a showing by the Attorney General that discovery by the relator would interfere with the State’s investigation or prosecution of a criminal or civil matter arising out of the same or similar facts, the court may stay such discovery for a period of not more than 60 days. The court may extend the 60-day period upon a further showing that the Attorney General has pursued the criminal or civil investigation or proceedings with reasonable diligence and may stay any proposed discovery in the civil action that will interfere with the ongoing criminal or civil investigation or proceedings.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 634. Alternate remedies available to determine civil penalty.

Notwithstanding sections 632 and 633 of this chapter, the Attorney General may elect to pursue its claim through any alternate remedy available to the State under any other law or regulation, including any administrative proceeding to determine a civil monetary penalty. If any such alternate remedy is pursued in another proceeding, a relator shall have the same rights in such proceeding as said relator would have had if the action had continued under this section.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 635. Payments to relators; limitations.

1. If the Attorney General proceeds with an action brought by a relator under subsection 632(b) of this chapter, the relator shall, subject to subsection (b) of this section, receive at least 15 percent but not more than 25 percent of the proceeds recovered and collected in the action or in settlement of the claim, depending upon the extent to which the relator substantially contributed to the prosecution of the action.
2. Where the action is one that the court finds to be based primarily on disclosures of specific information, other than information provided by the relator, relating to allegations or transactions in a criminal, civil, or administrative hearing; in a legislative, administrative, or State Auditor hearing, audit, investigation, or report; or from the news media, the court may award such sums as it considers appropriate, but in no case more than 10 percent of the proceeds, taking into account the significance of the information and the role of the relator in advancing the case to litigation.
3. Any payment to a relator under the subsection (a) or (b) of this section shall be made only from the proceeds recovered and collected in the action or in settlement of the claims. Any such relator shall also receive an amount for reasonable expenses that the appropriate court finds to have been necessarily incurred, plus reasonable attorney’s fees and costs. All such expenses, fees, and costs shall be awarded against the defendant and paid directly by the defendant to the relator.
4. If the Attorney General does not proceed with an action under this chapter, the relator bringing the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages on behalf of the State. The amount shall be not less than 25 percent and not more than 30 percent of the proceeds recovered and collected in the action or in settlement of the claim, and shall be paid out of such proceeds. In such circumstances, the relator shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, including reasonable attorney’s fees and costs. All such expenses, fees, and costs shall be awarded against the defendant and paid directly by the defendant to the relator.
5. Whether or not the Attorney General proceeds with the action, if the court finds that the action was brought by a relator who planned and initiated the violation of section 631 of this chapter upon which the action was brought, then the court may, to the extent the court considers appropriate, reduce or eliminate the share of the proceeds of the action that the relator would otherwise receive pursuant to this section, taking into account the role of the relator in advancing the case to litigation and any relevant circumstances pertaining to the violation. If the relator bringing the action is convicted of criminal conduct arising from his or her role in the violation of section 631 of this chapter, that relator shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. Such dismissal shall not prejudice the right of the State to continue the action.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 636. Certain actions barred.

1. An individual may not bring an action under subsection 632(b) of this chapter against a member of the State Legislative Branch, the Attorney General, a member of the Judiciary, or a senior Executive Branch official if the action is based on evidence or information known to the State when the action was brought.
2. An individual may not bring an action under subsection 632(b) of this chapter that is based upon allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the State is already a party.
3. Unless opposed by the Attorney General, the court shall dismiss an action or claim under subsection 632(b) of this chapter if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed:
   1. in a criminal, civil, or administrative hearing in which the State or its agent is a party;
   2. in a State legislative, administrative, or State Auditor’s report, hearing, audit, or investigation; or
   3. from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 637. Awards of costs and attorney’s fees against relators; liability.

1. If the Attorney General does not proceed with the action and the person bringing the action conducts the action, the court may award to the defendant reasonable attorney’s fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.
2. No liability shall be incurred by the State for any expenses, attorney’s fees, or other costs incurred by any person bringing or defending an action under this chapter.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 638. Relief from retaliatory actions.

1. Any employee, contractor, or agent shall be entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent, or a person associated with the employee, contractor, or agent in furtherance of an action under section 632 of this chapter, or other efforts to stop one or more violations of this chapter.
2. Notwithstanding any law to the contrary, relief under subsection (a) of this section shall include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, two times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorney’s fees. An employee, contractor, or agent may bring an action in the Civil Division of the Superior Court or any other appropriate court for the relief provided in this section.
3. No employer shall make, adopt, or enforce any rule, regulation, or policy preventing an employee, contractor, or agent from disclosing information to a government or law enforcement agency or from acting to further efforts to stop one or more violations of this chapter. No employer shall require as a condition of employment, during the term of employment or at the termination of employment that any employee, contractor, or agent agree to, accept, or sign an agreement that limits or denies the rights of such employee, contractor, or agent to bring an action or provide information to a government or law enforcement agency pursuant to this chapter. Any such agreement shall be void.
4. A civil action under this section may not be brought more than three years after the date when the retaliation occurred and became known to the employee, contractor, or agent.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 639. Limitation of actions; final judgments in criminal proceedings.

1. A civil action under section 632 of this chapter for a violation of subsection 631(a) of this chapter may not be brought after the last to occur of:
   1. more than six years after the date on which the violation was committed; or
   2. more than three years after the date when facts material to the right of action are known or reasonably should have been known by the official within the Attorney General’s office with responsibility to act in the circumstances, but in no event more than 10 years after the date on which the violation is committed.
2. A civil action under this subchapter may be brought for activity prior to enactment if the limitations period set in subsection (a) of this section has not lapsed.
3. If the State elects to intervene and proceed with an action brought under subsection 632(b) of this chapter, the State may file its own complaint or amend the complaint of a person who has brought an action pursuant to subsection 632(b). For statute of limitations purposes, any such pleading shall relate back to the filing date of the complaint of the person who originally brought the action, to the extent that the claim of the State arises out of the conduct, transactions, or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.
4. Notwithstanding any other general or special law, rule of procedure, or rule of evidence to the contrary, a final judgment rendered in favor of the State in any criminal proceeding charging false statements or fraud, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action that involves the same transaction as in the criminal proceeding and that is brought under section 632 of this chapter.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015; amended 2017, No. 113 (Adj. Sess.), § 185.

§ 640. Preponderance of the evidence standard.

In any action brought under section 632 of this title, the party bringing the action shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 641. Remedies under other laws; legislative construction.

1. The provisions of this chapter are not exclusive, and the remedies provided for in this chapter shall be in addition to any other remedies provided for in any other law or available under common law.
2. It is the intent of the Legislature that in construing this chapter, the courts of this State will be guided by the construction of similar terms contained in the Federal False Claims Act, 31 U.S.C. §§ 3729-3733, as from time to time amended by the U.S. Congress and the courts of the United States.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 642. Civil investigative demands.

1. In general.
   1. Issuance and service.   Whenever the Attorney General or a designee has reason to believe that any person may be in possession, custody, or control of any documentary material or information relevant to a false claims law investigation, the Attorney General or a designee may, before commencing a civil proceeding under subsection 632(a) of this title or making an election under subsection 632(b) of this title, issue in writing and cause to be served upon such person a civil investigative demand requiring such person:
      1. to produce such documentary material for inspection and copying;
      2. to answer in writing written interrogatories with respect to such documentary material or information;
      3. to give oral testimony concerning such documentary material or information; or
      4. to furnish any combination of such material, answers, or testimony.
   2. Service authority.   The Attorney General may delegate the authority to issue civil investigative demands under this subsection. Whenever a civil investigative demand is an express demand for any product of discovery, the Attorney General, the Deputy Attorney General, or an Assistant Attorney General shall cause to be served, in any manner authorized by this section, a copy of such demand upon the person from whom the discovery was obtained and shall notify the person to whom such demand is issued of the date on which such copy was served. Any information obtained by the Attorney General or a designee of the Attorney General under this section may be shared with any qui tam relator if the Attorney General or designee determines it is necessary as part of any false claims act investigation.
   3. Contents and deadlines.
      1. Each civil investigative demand issued under subdivision (1) of this subsection (a) shall state the nature of the conduct constituting the alleged violation of a false claims law that is under investigation and the applicable provision of law alleged to be violated.
      2. If such demand is for the production of documentary material, the demand shall:
         1. describe each class of documentary material to be produced with such definiteness and certainty as to permit such material to be fairly identified;
         2. prescribe a return date for each such class that will provide a reasonable period of time within which the material so demanded may be assembled and made available for inspection and copying; and
         3. identify the false claims law investigator to whom such material shall be made available.
      3. If such demand is for answers to written interrogatories, the demand shall:
         1. set forth with specificity the written interrogatories to be answered;
         2. prescribe dates at which time answers to written interrogatories shall be submitted; and
         3. identify the false claims law investigator to whom such answers shall be submitted.
      4. If such demand is for the giving of oral testimony, the demand shall:
         1. prescribe a date, time, and place at which oral testimony shall be commenced;
         2. identify a false claims law investigator who shall conduct the examination;
         3. specify that such attendance and testimony are necessary to the conduct of the investigation;
         4. notify the person receiving the demand of the right to be accompanied by an attorney and any other representative; and
         5. describe the general purpose for which the demand is being issued and the general nature of the testimony, including the primary areas of inquiry, which will be taken pursuant to the demand.
      5. Any civil investigative demand issued under this section that is an express demand for any product of discovery shall not be returned or returnable until 20 days after a copy of such demand has been served upon the person from whom the discovery was obtained.
      6. The date prescribed for the commencement of oral testimony pursuant to a civil investigative demand issued under this section shall be a date that is not less than seven business days after the date on which demand is received, unless the Attorney General or an Assistant Attorney General designated by the Attorney General determines that exceptional circumstances are present that warrant the commencement of such testimony within a lesser period of time.
      7. The Attorney General shall not authorize the issuance under this section of more than one civil investigative demand for oral testimony by the same person unless the person requests otherwise or unless the Attorney General, after investigation, notifies that person in writing that an additional demand for oral testimony is necessary.
2. Protected material or information.
   1. In general.   A civil investigative demand issued under subsection (a) of this section may not require the production of any documentary material, the submission of any answers to written interrogatories, or the giving of any oral testimony if such material, answers, or testimony would be protected from disclosure under:
      1. the standards applicable to subpoenas or subpoenas duces tecum issued by a court of the State of Vermont to aid in a grand jury investigation or conduct an inquest; or
      2. the standards applicable to discovery requests under the Vermont Rules of Civil Procedure, to the extent that the application of such standards to any such demand is appropriate and consistent with the provisions and purposes of this section.
   2. Effect on other orders, rules, and laws.   Any such demand that is an express demand for any product of discovery supersedes any inconsistent order, rule, or provision of law (other than this section) preventing or restraining disclosure of such product of discovery to any person. Disclosure of any product of discovery pursuant to any such express demand does not constitute a waiver of any right or privilege that the person making such disclosure may be entitled to invoke to resist discovery of trial preparation materials.
3. Service; jurisdiction.
   1. By whom served.   Any civil investigative demand issued under this section may be served by a false claims law investigator, by a law enforcement officer, or by any other individual authorized by law to serve legal process in the jurisdiction in which the demand is served.
   2. Service outside Vermont.   Any demand issued under this section or any petition filed under subsection (i) of this section may be served upon any person or entity who is not found in Vermont, consistent with 12 V.S.A. chapter 25 and in any such manner as provided in the Vermont Rules of Civil Procedure for personal service outside the State. To the extent that the courts of Vermont can assert jurisdiction over any person consistent with due process, the Civil Division of the Superior Court of Washington County shall have the same jurisdiction to take any action respecting compliance with this section by any such person that such court would have if such person were personally within the jurisdiction of such court.
4. Service upon legal entities and natural persons.
   1. Legal entities.   Service of any civil investigative demand issued under subsection (a) of this section or of any petition filed under subsection (i) of this section may be made upon a partnership, corporation, association, or other legal entity by:
      1. delivering an executed copy of such demand or petition to any partner, executive officer, managing agent, or general agent of the partnership, corporation, association, or entity, or to any agent authorized by appointment or by law to receive service of process on behalf of such partnership, corporation, association, or entity;
      2. delivering an executed copy of such demand or petition to the principal office or place of business of the partnership, corporation, association, or entity;
      3. depositing an executed copy of such demand or petition in the U.S. mail by registered or certified mail, return receipt requested, addressed to such partnership, corporation, association, or entity at its principal office or place of business; or
      4. by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
   2. Natural persons.   Service of any such demand or petition may be made upon any natural person by:
      1. delivering an executed copy of such demand or petition to the person;
      2. depositing an executed copy of such demand or petition in the U.S. mail by registered or certified mail, return receipt requested, addressed to the person at the person’s residence or principal office or place of business; or
      3. by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
5. Proof of service.   A verified return by the individual serving any civil investigative demand issued under subsection (a) of this section or any petition filed under subsection (i) of this section setting forth the manner of such service shall be proof of such service. In the case of service by registered or certified mail, such return shall be accompanied by the return post office receipt of delivery of such demand.
6. Documentary material.
   1. Sworn certificates.   The production of documentary material in response to a civil investigative demand served under this section shall be made under a sworn certificate, in such form as the demand designates, by:
      1. in the case of a natural person, the person to whom the demand is directed; or
      2. in the case of a person other than a natural person, a person having knowledge of the facts and circumstances relating to such production and authorized to act on behalf of such person.
   2. Contents of certificate.   The certificate shall state that all of the documentary material required by the demand and in the possession, custody, or control of the person to whom the demand is directed has been produced and made available to the false claims law investigator identified in the demand. To the extent that any information is not furnished, the information shall be identified and reasons set forth with particularity regarding the reasons why the information was not furnished.
   3. Production of materials.   Any person upon whom any civil investigative demand for the production of documentary material has been served under this section shall make such material available for inspection and copying to the false claims law investigator identified in such demand at the principal place of business of such person, or at such other place as the false claims law investigator and the person thereafter may agree and prescribe in writing, or as the court may direct under subdivision (i)(1) of this section. Such material shall be made so available on the return date specified in such demand, or on such later date as the false claims law investigator may prescribe in writing. Such person may, upon written agreement between the person and the false claims law investigator, substitute copies for originals of all or any part of such material.
7. Interrogatories.
   1. Each interrogatory in a civil investigative demand served under this section shall be answered separately and fully in writing under oath and shall be submitted under a sworn certificate, in such form as the demand designates, by:
      1. in the case of a natural person, the person to whom the demand is directed; or
      2. in the case of a person other than a natural person, the person or persons responsible for answering each interrogatory.
   2. If any interrogatory is objected to, the reasons for the objection shall be stated in the certificate instead of an answer. The certificate shall state that all information required by the demand and in the possession, custody, control, or knowledge of the person to whom the demand is directed has been submitted. To the extent that any information is not furnished, the information shall be identified and reasons set forth with particularity regarding the reasons why the information was not furnished.
8. Oral examinations.
   1. Procedures.   The examination of any person pursuant to a civil investigative demand for oral testimony served under this section shall be taken before an officer authorized to administer oaths and affirmations by the laws of Vermont or of the place where the examination is held. The officer before whom the testimony is to be taken shall put the witness on oath or affirmation and shall, personally or by someone acting under the direction of the officer and in the officer’s presence, record the testimony of the witness. The testimony shall be taken stenographically and shall be transcribed. When the testimony is fully transcribed, the officer before whom the testimony is taken shall promptly transmit a copy of the transcript of the testimony to the Attorney General or a designee. This subsection shall not preclude the taking of testimony by any means authorized by, and in a manner consistent with, the Vermont Rules of Civil Procedure.
   2. Persons present.   The false claims law investigator conducting the examination shall exclude from the place where the examination is held all persons except the person giving the testimony, the attorney for and any other representative of the person giving the testimony, the attorney for the government, any person who may be agreed upon by the attorney for the government and the person giving the testimony, the officer before whom the testimony is to be taken, and any stenographer taking such testimony.
   3. Where testimony taken.   The oral testimony of any person taken pursuant to a civil investigative demand served under this section shall be taken not more than 50 miles from where such person resides, is found, or transacts business, or in such other place as may be agreed upon by the false claims law investigator conducting the examination and such person.
   4. Transcript of testimony.   When the testimony is fully transcribed, the false claims law investigator or the officer before whom the testimony is taken shall afford the witness, who may be accompanied by counsel, a reasonable opportunity to examine and read the transcript, unless such examination and reading are waived by the witness. Any changes in form or substance that the witness desires to make shall be entered and identified upon the transcript by the officer or the false claims law investigator, with a statement of the reasons given by the witness for making such changes. The transcript shall then be signed by the witness, unless the witness in writing waives the signing, is ill, cannot be found, or refuses to sign. If the transcript is not signed by the witness within 30 days after being afforded a reasonable opportunity to examine it, the officer or the false claims law investigator shall sign it and state on the record the fact of the waiver, illness, absence of the witness, or the refusal to sign, together with the reasons, if any, given therefor.
   5. Certification and delivery to Attorney General.   The officer before whom the testimony is taken shall certify on the transcript that the witness was sworn by the officer and that the transcript is a true record of the testimony given by the witness, and the officer or false claims law investigator shall promptly deliver the transcript or send the transcript by registered or certified mail to the Attorney General or a designee.
   6. Furnishing or inspection of transcript by witness.   Upon payment of reasonable charges therefor, the false claims law investigator shall furnish a copy of the transcript to the witness only, except that the Attorney General, the Deputy Attorney General, or an Assistant Attorney General may, for good cause, limit such witness to inspection of the official transcript of the witness’ testimony.
   7. Conduct of oral testimony.
      1. Any person compelled to appear for oral testimony under a civil investigative demand issued under subsection (a) of this section may be accompanied, represented, and advised by counsel. Counsel may advise such person, in confidence, with respect to any question asked of such person. Such person or counsel may object on the record to any question, in whole or in part, and shall briefly state for the record the reason for the objection. An objection may be made, received, and entered upon the record when it is claimed that such person is entitled to refuse to answer the question on the grounds of any constitutional or other legal right or privilege, including the privilege against self-incrimination. Such person may not otherwise object to or refuse to answer any question and may not directly or through counsel otherwise interrupt the oral examination. If such person refuses to answer any question, a petition may be filed in the Civil Division of Washington County Superior Court under subdivision (i)(1) of this section for an order compelling such person to answer such question.
      2. If such person refuses to answer any question on the grounds of the privilege against self-incrimination, the testimony of such person may be compelled in accordance with the provisions of 12 V.S.A. § 1664 .
   8. Witness fees and allowances.   Any person appearing for oral testimony under a civil investigative demand issued under subsection (a) of this section shall be entitled to the same fees and allowances that are paid to witnesses in the courts of the State of Vermont.
      1. Judicial proceedings.

         (1) Petition for enforcement. Whenever any person fails to comply with any civil investigative demand issued under subsection (a) of this section, or whenever satisfactory copying or reproduction of any material requested in such demand cannot be done and such person refuses to surrender such material, the Attorney General may file, in the Civil Division of Washington County Superior Court or the Civil Division in any county in which such person resides, is found, or transacts business, and serve upon such person a petition for an order of such court for the enforcement of the civil investigative demand.

         (2) Petition to modify or set aside demand.

      1. Any person who has received a civil investigative demand issued under subsection (a) of this section may file, in the Civil Division of Washington County Superior Court or the Civil Division in any county in which such person resides, is found, or transacts business, and serve upon the Attorney General’s Office a petition for an order of the court to modify or set aside such demand. In the case of a petition addressed to an express demand for any product of discovery, a petition to modify or set aside such demand may be brought only in the Civil Division in which the proceeding in which such discovery was obtained is or was last pending. Any petition under this subdivision (2) must be filed:
         1. within 20 days after the date of service of the civil investigative demand or at any time before the return date specified in the demand, whichever date is earlier; or
         2. within such longer period as may be prescribed in writing by any false claims law investigator identified in the demand.
      2. The petition shall specify each ground upon which the petitioner relies in seeking relief under subdivision (A) of this subdivision (2) and may be based upon any failure of the demand to comply with the provisions of this section or upon any constitutional or other legal right or privilege of such person. During the pendency of the petition in the court, the court may stay, as it deems proper, the running of the time allowed for compliance with the demand, in whole or in part, except that the person filing the petition shall comply with any portions of the demand not sought to be modified or set aside.

         (3) Petition to modify or set aside demand for product of discovery.

         (A) In the case of any civil investigative demand issued under subsection (a) of this section that is an express demand for any product of discovery, the person from whom such discovery was obtained may file, in the Civil Division in which the proceeding in which such discovery was obtained is or was last pending, and serve upon any false claims law investigator identified in the demand and upon the recipient of the demand, a petition for an order of such court to modify or set aside those portions of the demand requiring production of any such product of discovery. Any petition under this subdivision (3) must be filed:

         1. within 20 days after the date of service of the civil investigative demand or at any time before the return date specified in the demand, whichever date is earlier; or
         2. within such longer period as may be prescribed in writing by any false claims law investigator identified in the demand.

            (B) The petition shall specify each ground upon which the petitioner relies in seeking relief under subdivision (A) of this subdivision (3) and may be based upon any failure of the portions of the demand from which relief is sought to comply with the provisions of this section or upon any constitutional or other legal right or privilege of the petitioner. During the pendency of the petition, the court may stay, as it deems proper, compliance with the demand and the running of the time allowed for compliance with the demand.

            (4) Jurisdiction. Whenever any petition is filed under this subsection, such court shall have jurisdiction to hear and determine the matter so presented and to enter such order or orders as may be required to carry out the provisions of this section. Any final order so entered may be appealed to the Vermont Supreme Court. Any disobedience of any final order entered under this section by any court shall be punished as a contempt of the court.

            (5) Applicability of Rules of Civil Procedure. The Rules of Civil Procedure shall apply to any petition under this subsection, to the extent that such rules are not inconsistent with the provisions of this section.

            (j) Use and disclosure of material, answers, or transcripts. The Office of the Attorney General may use the material, answers to interrogatories, or transcripts for any lawful purpose in conducting its investigation under the false claims law, including sharing the materials with the relator as provided in subdivision (a)(1) of this section. Further, whenever any attorney from the Office of the Attorney General has been designated to appear before any court, grand jury, or agency in any case or proceeding, such attorney may obtain, possess, and use any documentary material, answers to interrogatories, or transcripts of oral testimony received under this section for official use in connection with any such case or proceeding as such attorney determines to be required. Any documentary material, answers to written interrogatories, or oral testimony provided under any civil investigative demand issued under subsection (a) of this section shall not be used or disclosed in any other manner than set forth in this subsection without a Court order. No order authorizing such further use or disclosure shall issue without notice to the Attorney General and the person from whom such discovery was obtained and, if requested by either of those parties, an opportunity to present arguments or evidence, or both, on the issue of disclosure.

            (k) Definitions. As used in this section:

            (1) “False claims law investigation” means any inquiry conducted by any false claims law investigator for the purpose of ascertaining whether any person is or has been engaged in any violation of a false claims law.

            (2) “False claims law investigator” means any attorney or investigator employed by the Attorney General’s Office who is charged with the duty of enforcing or carrying into effect any false claims law, or any officer or employee of Vermont acting under the direction and supervision of such attorney or investigator in connection with a false claims law investigation.

            (3) “Documentary material” includes the original or any copy of any book, record, report, memorandum, paper, communication, tabulation, chart, or other document, or data compilations stored in or accessible through computer or other information retrieval systems, together with instructions and all other materials necessary to use or interpret such data compilations, and any product of discovery.

            (4) “Product of discovery” includes:

            (A) the original or duplicate of any deposition, interrogatory, document, thing, result of the inspection of land or other property, examination, or admission, which is obtained by any method of discovery in any judicial or administrative proceeding of an adversarial nature;

            (B) any digest, analysis, selection, compilation, or derivation of any item listed in subdivision (A) of this subdivision (4); and

      3. any index or other manner of access to any item listed in subdivision (A) of this subdivision (4).

         (5) “Official use” means any use that is consistent with the law, and the regulations and policies of the Office of the Attorney General, including use in connection with internal office memoranda and reports; communications between the office and a federal, State, or local government agency, or a contractor of a federal, State, or local government agency, undertaken in furtherance of an office investigation or prosecution of a case; interviews of any qui tam relator or other witness; oral examinations; depositions; preparation for and response to civil discovery requests; introduction into the record of a case or proceeding; applications, motions, memoranda, and briefs submitted to a court or other tribunal; and communications with government investigators, auditors, consultants, experts, the counsel of other parties, arbitrators, and mediators, concerning an investigation, case, or proceeding.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015; amended 2017, No. 11 , § 57; 2019, No. 14 , § 74, eff. April 30, 2019.

§ 701. General appropriation bill.

When the budget has been submitted to the General Assembly, it shall be immediately referred to the Committee on Appropriations, which shall at once proceed to consider the same and as soon as possible thereafter prepare a bill that shall be known as the “general appropriation bill” and introduce the same forthwith for action by the General Assembly. Such bill shall provide appropriations for the maintenance and operation of all departments of the State.

§ 701a. Capital construction bill.

1. When the capital budget has been submitted by the Governor to the General Assembly, it shall immediately be referred to the House Committee on Corrections and Institutions, which shall proceed to consider the budget request in the context of the 10-year capital program plan also submitted by the Governor pursuant to sections 309 and 310 of this title. The Committee shall also propose to the General Assembly a prudent amount of total general obligation bonding for the following fiscal year, for support of the capital budget, in consideration of the recommendation of the Capital Debt Affordability Advisory Committee pursuant to chapter 13, subchapter 8 of this title.
2. As soon as possible, the Committee shall prepare a bill to be known as the “capital construction bill,” which shall be introduced for action by the General Assembly.
3. The spending authority authorized by a capital construction act shall carry forward until expended, unless otherwise provided. All unexpended funds remaining for projects authorized by capital construction acts enacted in a legislative session that was two or more years prior to the current legislative session shall be reported to the General Assembly and may be reallocated in future capital construction acts.
4. On or before January 15, each entity to which spending authority has been authorized by a capital construction act enacted in a legislative session that was two or more years prior to the current legislative session shall submit to the House Committee on Corrections and Institutions and the Senate Committee on Institutions a report on the current fund balances of each authorized project with unexpended funds.
5. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the reports to be made under subsections (c) and (d) of this section.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 4; amended 2007, No. 200 (Adj. Sess.), § 36, eff. June 8, 2008; 2011, No. 104 (Adj. Sess.), § 33, eff. May 7, 2012; 2013, No. 51 , § 36; 2013, No. 178 (Adj. Sess.), § 28 eff. June 9, 2014; 2017, No. 154 (Adj. Sess.), § 32, eff. May 21, 2018.

§ 702. Exceeding budget.

The head of a State department, who is not elected by the people, shall not exceed the limits of the budget adopted by the General Assembly for his or her department, and in the event that such limit is exceeded, the Governor shall remove him or her after due notice and hearing. However, in case any unforeseen necessity arises whereby the budget limits may be exceeded in the particular department affected, then the payment of the same may be authorized from the contingent fund, on the approval of the Governor and the State Treasurer.

§ 703. Unexpended appropriations.

The unexpended and unencumbered balances of any sums appropriated by the General Assembly shall, at the end of the fiscal year, unless otherwise specifically provided, revert to the appropriate fund balance. Refunds of expenditures and reimbursements shall be credited to the appropriate fund and to appropriation accounts in the current fiscal year.

HISTORY: Amended 1983, No. 253 (Adj. Sess.), § 249; 1997, No. 66 (Adj. Sess.), § 66, eff. Feb. 20, 1998; 2007, No. 192 (Adj. Sess.), § 6.011.

§ 704. Interim budget and appropriation adjustments.

1. The General Assembly recognizes that acts of appropriations and their sources of funding reflect the priorities for expenditures of public funds enacted by the Legislature and that major reductions or transfers, when required by reduced State revenues or other reasons, ought to be made whenever possible by an act of the Legislature reflecting its revisions of those priorities. Nevertheless, the General Assembly also recognizes that when it is not in session, it may be necessary to reduce authorized appropriations and their sources of funding, and funds may need to be transferred, to maintain a balanced State budget. Under these limited circumstances, it is the intent of the General Assembly that appropriations may be reduced and funds transferred when the General Assembly is not in session pursuant to the provisions of this section.
2. 1. Except as otherwise provided in subsection (f) of this section, in each instance that the official State revenue estimate for the General Fund, the Transportation Fund, or federal funds has been reduced by one percent or more from the estimates determined and assumed for purposes of the current fiscal year’s appropriations, the Secretary of Administration shall prepare an expenditure reduction plan for approval by the Joint Fiscal Committee, provided that any total reductions in appropriations and transfers of funds are not greater than the reductions in the official State revenue estimate. (b) (1) Except as otherwise provided in subsection (f) of this section, in each instance that the official State revenue estimate for the General Fund, the Transportation Fund, or federal funds has been reduced by one percent or more from the estimates determined and assumed for purposes of the current fiscal year’s appropriations, the Secretary of Administration shall prepare an expenditure reduction plan for approval by the Joint Fiscal Committee, provided that any total reductions in appropriations and transfers of funds are not greater than the reductions in the official State revenue estimate.
   2. In each instance that the official State revenue estimate for the General Fund, the Transportation Fund, or federal funds has been reduced by less than one percent from the estimates determined and assumed for purposes of the current fiscal year’s appropriations, the Secretary of Administration may prepare and implement an expenditure reduction plan without the approval of the Joint Fiscal Committee, provided that any total reductions in appropriations and transfers of funds are not greater than the reductions in the official State revenue estimate. The Secretary may implement an expenditure reduction plan under this subdivision if plan reductions to the total amount appropriated in any section or subsection do not exceed five percent, the plan is designed to minimize any negative effects on the delivery of services to the public, and the plan does not have any unduly disproportionate effect on any single function, program, service, benefit, or county. Plans not requiring the approval of the Joint Fiscal Committee shall be filed with the Joint Fiscal Office prior to implementation. If the Secretary’s plan consists of reductions greater than five percent to the total amount appropriated in any section or subsection, such plan shall only be implemented in the manner provided for in subdivision (1) of this subsection.
3. An expenditure reduction plan prepared by the Secretary shall indicate:
   1. the amounts to be reduced in each appropriation by funding source and the amounts to be transferred;
   2. in personal services, operating expenses, grants, and other categories, the effect of each reduction in appropriations and their sources of funding, and each fund transfer, on the primary purposes of the program;
   3. how it is designed to minimize any negative effects on the delivery of services to the public; and
   4. any unduly disproportionate effect the plan may have on any single function, program, service, benefit, or county.
4. An expenditure reduction plan implemented under subdivision (b)(2) of this section shall not include any reduction in:
   1. appropriations authorized and necessary to fulfill the State’s debt obligations;
   2. appropriations authorized for the Judicial or Legislative Branch, except that the plan may recommend reductions for consideration by the Judicial or Legislative Branch; or
   3. appropriations for the salaries of elected officers of the Executive Branch listed in subsection 1003(a) of this title.
5. 1. The Joint Fiscal Committee shall have 21 days from the date of submission of any expenditure reduction plan under subdivision (b)(1) of this section to consider the plan and may approve or disapprove the plan upon a vote of a majority of the members of the Committee. If the Committee vote results in a tie, the plan shall be deemed disapproved, and if the Committee fails for any other reason to take final action on such plan within 21 days of its submission to the Committee, it shall be deemed to be disapproved. During the 21-day period for consideration of the plan, the Committee shall conduct a public hearing and provide an opportunity for public comment on the plan. (e) (1) The Joint Fiscal Committee shall have 21 days from the date of submission of any expenditure reduction plan under subdivision (b)(1) of this section to consider the plan and may approve or disapprove the plan upon a vote of a majority of the members of the Committee. If the Committee vote results in a tie, the plan shall be deemed disapproved, and if the Committee fails for any other reason to take final action on such plan within 21 days of its submission to the Committee, it shall be deemed to be disapproved. During the 21-day period for consideration of the plan, the Committee shall conduct a public hearing and provide an opportunity for public comment on the plan.
   2. If the plan is disapproved, then in order to communicate the priorities of the General Assembly, the Committee shall make recommendations to the Secretary for amendments to the plan. Within seven days after the Committee notifies the Secretary of its disapproval of a plan, the Secretary may submit a final plan to the Committee. The Committee shall have 14 days from the date of submission of a final plan to consider that plan and to vote by a majority of the members of the Committee to approve or disapprove the plan, but if the Committee fails to approve or disapprove the plan by a majority vote, the plan shall be deemed disapproved. If the Secretary’s final plan includes any changes from the original plan other than those recommended by the Committee, then during the 14-day period for consideration of the final plan, the Committee shall conduct a public hearing and provide an opportunity for public comment, with the scope of the hearing and the comments limited to the changes from the original plan.
   3. In determining whether to approve a plan submitted by the Secretary under this subsection, the Committee shall consider whether the plan minimizes any negative effects on the delivery of services to the public and whether the plan will have any unduly disproportionate effect on any single function, program, service, benefit, or county.
   4. Any plan disapproved under subdivision (b)(1) of this section shall not be implemented.
   5. For purposes of this section, the Committee shall be convened at the call of the Chair or at the request of at least three members of the Committee.
6. In the event of a reduction in the official revenue estimate of one percent or more and the Joint Fiscal Committee does not approve the Secretary’s final expenditure reduction plan prepared under subdivision (b)(1) of this section, the Secretary may implement an expenditure reduction plan in the manner provided for in subdivision (b)(2) of this section, provided that the expenditure reduction plan is not greater than one percent of the prior official revenue estimate. If the Secretary implements an expenditure reduction plan under the authority of this subsection, any subsequent expenditure reduction plan that is required to address the remaining imbalance under the current official State revenue estimate may only be implemented in the manner provided for in subdivision (b)(1) of this section.
7. No expenditure reduction plan may be approved or implemented under this section that:
   1. would result in total reductions in appropriations from any fund, or transfers to that fund, by more than four percent of the estimate originally determined and assumed for purposes of the current fiscal year’s appropriations; or
   2. would reduce expenditures or transfer revenues of the Education Fund as prescribed by law.
8. An expenditure reduction plan may only be implemented under subsection (b) of this section subsequent to an official State revenue estimate and when the General Assembly is not in session.
9. [Repealed.]
10. In each instance that cumulative revenue collections during the month of September or October are four percent or more below the respective cumulative monthly revenue targets, the Emergency Board shall convene in the manner provided for in subsection 305a(b) of this title to determine whether to revise the official State revenue estimate.
11. As used in this section:
    1. “Cumulative monthly revenue targets” means monthly revenue targets adopted based on the most current official State revenue estimates, as agreed upon by the Legislative Joint Fiscal Office and the Secretary.
    2. “Expenditure reduction plan” means a rescission plan that includes reducing and adjusting appropriations and their sources of funding, and transferring and adjusting funds, from the amounts authorized in the current fiscal year’s appropriations.
    3. “Official State revenue estimates” means a revenue estimate determined by the Emergency Board, as provided in section 305a of this title. An official State revenue estimate does not mean cumulative monthly revenue targets.

HISTORY: Added 1995, No. 178 (Adj. Sess.), § 280; amended 1997, No. 61 , § 262a; 2009, No. 52 , § 1; 2013, No. 142 (Adj. Sess.), § 63; 2015, No. 58 , § C.103, eff. June 11, 2015; 2015, No. 131 (Adj. Sess.), § 33.

§ 704a. Execution of the laws relating to appropriations.

1. The Governor and every other officer or employee of the Executive Branch shall faithfully execute the laws relating to appropriations so as to effectuate the intent of the Legislature in enacting such laws, including the provisions of this chapter, the annual appropriations act, and any budget adjustment act.
2. The Executive Branch is authorized and encouraged to take such actions as are necessary and desirable to manage and administer State programs and agencies in an efficient, effective, and fiscally prudent manner, and to such ends may accomplish savings and reduce spending in such programs and agencies, provided that the legislative purposes for which the sums are appropriated are substantially accomplished.

HISTORY: Added 1995, No. 178 (Adj. Sess.), § 281; amended 1999, No. 1 , § 99, eff. March 31, 1999.

§ 705. Allotment of appropriations.

1. With the approval of the Governor, the Secretary of Administration, through the Commissioner of Finance and Management or such divisions of the Agency of Administration as the Commissioner may designate, shall have the following powers, duties, and functions:
   1. The authority to allot from time to time to each department, institution, and State agency the appropriation made by the General Assembly for the department, institution, or State agency.  The allotment may be made on a monthly basis or as the work of the department, institution, and agency may progress.
   2. The keeping of such controlling accounts as may be necessary in order to determine the accuracy and limit of the expenditures made under the allotments.
2. The departments, institutions, and agencies shall be governed by the allotments made as provided in this section and shall not at any time exceed the sums thus allotted.
3. The authority conferred by this section is granted solely for the ministerial purpose of managing the State’s financial accounts. Nothing contained in this section shall authorize any decrease in any such appropriation. If allotments have been made, the Secretary shall report to the Joint Fiscal Committee on or before the 15th day of each quarter, identifying and describing the allotments made pursuant to the authority granted by this section during the preceding quarter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 5; amended 1987, No. 243 (Adj. Sess.), § 62, eff. June 13, 1988; 1995, No. 178 (Adj. Sess.), § 283; 2011, No. 3 , § 89, eff. Feb. 17, 2011; 2013, No. 142 (Adj. Sess.), § 64.

§ 706. Transfer of appropriations.

Notwithstanding any authority granted elsewhere, all transfers of appropriations shall be made pursuant to this section upon the initiative of the Governor or upon the request of a secretary or commissioner.

1. With the approval of the Governor, the Commissioner of Finance and Management may transfer balances of appropriations not to exceed $50,000.00 made under any appropriation act for the support of the government from one component of an agency, department, or other unit of State government to any component of the same agency, department, or unit.
2. Except as specified in subdivisions (1) and (4) of this section, the transfer of balances of appropriations may be made only with the approval of the Emergency Board.
3. For the specific purpose of balancing and closing out fund accounts at the end of a fiscal year, the Commissioner of Finance and Management may adjust a balance within an account of an agency or department in an amount not to exceed $100.00.
4. [Repealed.]

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 6; amended 1971, No. 92 , § 16, eff. June 1, 1971; 1977, No. 247 (Adj. Sess.), § 188, eff. April 17, 1978; 1979, No. 74 , § 321; 1983, No. 195 (Adj. Sess.), § 5(b); 1999, No. 11 , § 1; 1999, No. 66 (Adj. Sess.), § 53, eff. Feb. 8, 2000; 2003, No. 80 (Adj. Sess.), § 79, eff. March 8, 2004; 2005, No. 80 , § 52; 2007, No. 65 , § 395, eff. June 4, 2007; 2011, No. 3 , § 90, eff. Feb. 17, 2011; 2011, No. 153 (Adj. Sess.), § 29.

§§ 707-709. Repealed. 1995, No. 178 (Adj. Sess.), § 283a.

§ 710. Payment of State agency fees.

1. Notwithstanding any other provision of law, the Agency of Transportation, any cooperating municipalities, and their contractors or agents shall be exempt from the payment of fee charges for reviews, inspections, or nonoperating permits issued by the Department of Public Safety, a District Environmental Commission, and the Agency of Natural Resources for any projects undertaken by or for the Agency and any cooperating municipalities for which all or a portion of the funds are authorized by a legislatively approved transportation construction, rehabilitation, or paving program within a general appropriation act introduced pursuant to section 701 of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(10), (j)(11), and (j)(26).
2. Notwithstanding any other provision of law, no fees shall be charged for reviews, inspections, or nonoperating permits issued by the Department of Public Safety, a District Environmental Commission, and the Agency of Natural Resources for:
   1. Any project undertaken by the Department of Buildings and General Services, the Agency of Natural Resources, or the Agency of Transportation that is authorized or funded in whole or in part by the capital construction act introduced pursuant to section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(10), (j)(11), and (j)(26).
   2. Any project undertaken by a municipality, which is funded in whole or in part by a grant or loan from the Agency of Natural Resources or the Agency of Transportation financed by an appropriation of a capital construction act introduced pursuant to section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(7)(A) and (B), (j)(10), (j)(11), and (j)(26). However, all such fees shall be paid for reviews, inspections, or permits required by municipal solid waste facilities developed by a solid waste district that serves, or is expected to serve, in whole or in part, parties located outside its own district boundaries pursuant to 10 V.S.A. chapter 159.

HISTORY: Added 1993, No. 59 , § 20, eff. June 3, 1993; amended 1993, No. 233 (Adj. Sess.), § 57, eff. June 21, 1994; 1995, No. 148 (Adj. Sess.), § 4(c)(1); 1999, No. 148 (Adj. Sess.), § 86, eff. May 24, 2000; 2003, No. 115 (Adj. Sess.), § 115, eff. Jan. 31, 2005; 2005, No. 103 (Adj. Sess.), § 2, eff. April 5, 2006; 2015, No. 64 , § 45.

§ 711. Approval of debt.

If a person as defined in 1 V.S.A. § 128 , except a municipality as defined in 1 V.S.A. § 126 , pays a majority of its operating expenses, as determined in accordance with Generally Accepted Accounting Principles, in any fiscal year with amounts appropriated by the State, either directly or indirectly as a pass-through from a State agency or department, and the person intends to incur any debt in that fiscal year in the cumulative principal amount greater than $1,000,000.00, including debt incurred through the issuance of bonds, notes, bank loans, mortgages, lease-purchase contracts, and capital leases, then the person shall notify and obtain the approval of the State Treasurer and the Governor prior to incurring the debt. For the purposes of this section, amounts appropriated by the State shall not include nondiscretionary federal funds known as special revenue funds as presented in the State’s comprehensive annual financial report.

HISTORY: Added 2001, No. 61 , § 67, eff. June 16, 2001; amended 2001, No. 142 (Adj. Sess.), § 320, eff. June 21, 2002.

§ 801. Independent audit authorized.

The financial statements of the funds of State government or the financial and other records of the Tax Commissioner, Treasurer, and Agency of Administration shall be examined by competent accountants employed by the State under the direction of the Emergency Board whenever in its discretion an independent audit will serve the best interests of the State. A copy of the report of such examination shall be filed with each member of the Emergency Board and shall be open to public inspection. The Emergency Board shall transmit to the General Assembly a copy of such reports covering the examination so made for the preceding two years. The expenses of such examinations shall be paid from the General Fund. The provisions of this section shall not be construed to limit the duty of the Auditor of Accounts as set forth under subdivision 163(1) of this title.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 22; 1967, No. 91 , § 2.

§ 802. Repealed. 1969, No. 219 (Adj. Sess.), § 4, eff. March 27, 1970.

§ 803. Repealed. 1987, No. 243 (Adj. Sess.), § 63, eff. June 13, 1988.

§ 804. Repealed. 1977, No. 146 (Adj. Sess.), § 6.

§ 805. County accounts to be specific.

The Auditor shall not allow the account of a sheriff, jailer, State’s Attorney, county clerk, Justice, or district judge, unless such account specifies the offense charged or law violated on account of which such expenses or fees were incurred, nor unless it contains a true summary of the amount of such fees and expenses that are properly chargeable to offenses punishable by death or imprisonment in the State prison, to offenses against the law prohibiting the traffic in alcohol and to other misdemeanors.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2017, No. 83 , § 161(5).

§ 806. Audit where prisoner is bound over.

1. The cost of examination of a person accused of a crime exceeding the jurisdiction of a district judge to try and determine may be certified by the judge to the Auditor who shall audit the same.
2. The Auditor shall require each district judge to furnish in writing the name of the person by him or her bound over for trial before allowing costs of trial in the prosecution.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 92, eff. April 9, 1974.

§ 807. Audit of sheriff’s accounts.

All accounts of a sheriff or his or her deputy shall be allowed as the account of the sheriff, and all bills of costs growing out of substantially the same transaction shall be audited at the same time. An officer, magistrate, or witness shall not be allowed fees more than once for essentially the same service, nor for constructive service. A bill of costs shall not be allowed in any case where it appears to the Auditor that the prosecution was superfluous and instituted for the purpose of enhancing costs.

§ 808. Repealed. 1993, No. 227 (Adj. Sess.), § 21.

§ 809. Auditing of court clerk accounts and of Probate Court judges.

The Auditor shall examine the accounts of the judges of Probate and Superior Court clerks and ascertain whether their fees are properly and uniformly charged and rendered, and if the Auditor finds they are not, he or she shall direct the proper corrections to be made. The Auditor shall endeavor to obtain a uniform practice in the Superior Courts in that respect.

HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 197, eff. Feb. 1, 2011.

§ 901. Borrowing money.

The Treasurer shall not make a contract binding the State for money borrowed unless it is countersigned by the Secretary of State.

HISTORY: Amended 2007, No. 121 (Adj. Sess.), § 27.

§ 902. Authorization to borrow money.

1. Notwithstanding any other provision of law to the contrary, the State Treasurer, with notification to the Governor, on behalf of the State may borrow on the credit of the State for the purpose of raising funds to pay expenses of government for which appropriations have been made but for which anticipated revenues have not been received, for the purpose of defraying accumulated State deficits, for the purposes authorized by section 955 of this title and for expenses of preparing, issuing, and marketing obligations issued for such purposes. To evidence such borrowing, the State Treasurer is authorized to issue notes or other similar obligations, which shall include notes commonly known as tax exempt commercial paper (notes) from time to time in such form and denominations and with such terms and provisions including the maturity date or dates, redemption provisions, and other provisions necessary or desirable as the State Treasurer shall determine. Such notes shall be non-interest bearing or bear interest at such rate or rates, which may be fixed or variable, as, in the judgment of the State Treasurer, may be sufficient or necessary to effect the issuance and sale or resale thereof in the manner determined by the State Treasurer. The State Treasurer is authorized to enter into such agreements with other persons as he or she deems necessary or appropriate in connection with the issuance, sale, and resale of such notes, including agreements providing liquidity or credit facilities in connection with such notes, and, at his or her discretion, to resell or retire any such notes purchased by the State prior to the stated maturity thereof.
2. The State Treasurer shall pay the interest on, principal of and expenses of preparing, issuing, and marketing of such notes as the same fall due without further order or authority from the General Fund or from the Transportation or other applicable funds or from the proceeds of bonds or notes. The authority hereby granted is in addition to and not in limitation of any other authority. Such notes shall be sold at public or private sale with or without published notice, as the State Treasurer may determine to be in the best interests of the State.

HISTORY: Added 1993, No. 19 , § 1, eff. May 11, 1993; amended 1995, No. 178 (Adj. Sess.), § 264.

§ 931. Repealed. 1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.

§ 932. Claims against the State.

1. A person who has a claim against the State, the payment of which is not otherwise specially provided for by law, may file a claim in Small Claims Court in accordance with 12 V.S.A. chapter 187. Notwithstanding 12 V.S.A. § 5531(a) , judgments on such claims shall not exceed $2,000.00.
2. A claim under this section shall be filed within 18 months after the date the claim accrued, and shall not be filed until the claimant has exhausted any duly adopted administrative grievance procedure of the State agency or department against which the claim is made. If the agency or department has not issued a final determination within 90 days after the grievance was filed, then for purposes of a claim under this subchapter, the grievance claim shall be deemed granted.

HISTORY: Amended 1977, No. 94 ; 1997, No. 156 (Adj. Sess.), § 46, eff. April 29, 1998; 1999, No. 8 , § 1.

§ 932a. Administrative reimbursement for property damages.

1. In lieu of proceeding under section 932 of this title, a State employee who has a claim against the State for property damages may elect to file a claim under this section, provided the claim does not exceed $1,000.00.
2. The claim shall be:
   1. made in writing, under oath, stating the facts relating to the claim;
   2. filed with the agency, department, or other State entity that employs the claimant; and
   3. filed within one year after the date the claim accrued.
3. The State entity with which the claim is filed may approve payment of a claim against the State for property damages sustained by the employee and payment of the claim shall be charged against that entity’s departmental appropriation.
4. If a claim is approved under this section, the Commissioner of Finance and Management shall issue his or her warrant for the amount of the award, the acceptance of which shall be a full discharge of all claims against the State arising out of the matters involved therein. If the claim is disapproved, the person may proceed to file the claim under section 932 of this title.
5. 1. A State employee who incurs expenses for legal representation because of a criminal investigation conducted by law enforcement authorities regarding an act or omission within the scope of the employee’s duties, may present an administrative claim to the head of his or her employing agency, provided that the employee has not: (e) (1) A State employee who incurs expenses for legal representation because of a criminal investigation conducted by law enforcement authorities regarding an act or omission within the scope of the employee’s duties, may present an administrative claim to the head of his or her employing agency, provided that the employee has not:
      1. been convicted of any criminal offense on account of the act or omission;
      2. been finally terminated by the employing agency; or
      3. resigned from employment due to the act or omission.
   2. If the agency head has not yet made a determination whether the employee will be terminated, or if the termination is appealed to the Vermont Labor Relations Board, the request may be held until such a determination has been made or the Board decides the case. An employee reinstated by the Board may present a claim.
   3. The agency head shall forward the request along with a recommendation to the Secretary of Administration, who may authorize administrative reimbursement from the Agency’s budget for reasonable and necessary expenses, not to exceed $5,000.00. Payment under this subsection may only be authorized upon a finding by the Secretary of Administration that the act or omission was within the scope of the employee’s duties. The decision to reimburse and the amount of reimbursement are matters fully within the Secretary’s discretion. The Secretary’s decision shall be final and there shall be no appeal or challenge of the decision. There shall be no other reimbursement of legal expenses for criminal representation except as authorized under 3 V.S.A. § 1104 .

HISTORY: Added 1999, No. 8 , § 2; amended 2001, No. 72 , § 1.

§ 933. Hearing.

1. Notwithstanding 12 V.S.A. § 5535 , claims to the Small Claims Court brought under this subchapter shall be decided by the court with no jury. An appeal from the decision of the Small Claims Court shall be in accordance with provisions of 12 V.S.A. § 5538 .
2. The Small Claims Court shall decide a claim filed under this subchapter by an inmate of a correctional facility on the basis of affidavits of the parties and testimony by telephone; or the court may in its discretion request additional evidence to decide such claims.
3. Upon award of damages by the Small Claims Court, the Commissioner of Finance and Management shall issue a warrant for such amount, the acceptance of which shall be a full discharge of all claims against the State arising out of the matters involved therein.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1981, No. 249 (Adj. Sess.), § 7; 1983, No. 195 (Adj. Sess.), § 5(b); 1997, No. 156 (Adj. Sess.), § 47, eff. April 29, 1998.

§ 934. Repealed. 1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.

§ 935. Payment of claims.

The amount paid under this subchapter shall be charged to the State agency responsible for the basis of the claim; otherwise, it shall be paid from the contingent fund.

§ 951. Applicability.

This subchapter shall apply to all bonds hereafter authorized by the Legislature, provided that provisions in authorizing acts inconsistent herewith shall control, except as provided in section 957 of this title.

HISTORY: Added 1959, No. 24 , § 1, eff. March 10, 1959.

§ 951a. Debt service funds.

1. Three governmental debt service funds are hereby established:
   1. the General Obligation Bonds Debt Service Fund to fulfill debt service obligations of general obligation bonds from all funding sources;
   2. the Transportation Infrastructure Bonds Debt Service Fund to fulfill debt service obligations of transportation infrastructure bonds funded primarily by the revenues of the Transportation Infrastructure Bond Fund; and
   3. other debt service funds to fulfill debt service obligations of other long-term debt funded by governmental fund dedicated revenue sources.
2. Financial resources in each fund shall consist of appropriations by the General Assembly to fulfill debt service obligations, the transfer of funding sources by the General Assembly to fulfill future debt service obligations, bond proceeds raised to fund a permanent reserve required by a trust agreement entered into to secure bonds, transfers of appropriations effected pursuant to section 706 of this title, investment income earned on balances held in trust agreement accounts as required by a trust agreement, and such other amounts as directed by the General Assembly or that are specifically authorized by provisions of this title. Each debt service fund shall account for the accumulation of resources and the fulfillment of debt service obligations within the current fiscal year and the accumulation of resources for debt service obligations maturing in future fiscal years.
3. Debt service obligations of general obligation bonds, transportation infrastructure bonds, or other authorized long-term obligations shall be fulfilled from the respective governmental debt service funds established in this section.
4. As used in this section, “debt service obligations” of bonds include requirements to:
   1. pay principal and interest, sinking fund obligations, and redemption premiums;
   2. pay investment return on and the maturity value of capital appreciation bonds;
   3. provide for reserves required by a trust agreement entered into to secure bonds; and
   4. provide any additional security, insurance, or other form of credit enhancement required by a trust agreement entered into to secure bonds.

HISTORY: Added 2011, No. 63 , § F.101, eff. June 2, 2011.

§ 952. Denominations; how issued.

The bonds may be issued at one time or in series from time to time, in any form permitted by law. Except for zero coupon bonds or capital appreciation bonds designated as such by the State Treasurer, with the approval of the Governor, each series shall be payable in substantially equal or diminishing amounts annually, the first of such annual payments to be made not later than five years after the date of such bonds and the last of the payments to be made not later than 20 years after the date. All bonds shall mature not later than 20 years after the date of such bonds. The principal, interest, investment returns, and maturity value of such bonds shall be payable in lawful money of the United States or of the country in which the bonds were sold and for such payments the full faith and credit of the State are hereby pledged. Such bonds shall be signed by the State Treasurer or his or her deputy and countersigned by the manual or facsimile signature of the Secretary of State or his or her deputy, and shall bear the Seal of the State or a facsimile thereof, and the interest coupons thereon shall bear the facsimile signature of the State Treasurer. Such bonds shall be registered as provided by this subchapter. The date of issuance, place of payment, rate of interest (which may be fixed or variable) or the manner of determining such rate of interest, original stated value, investment returns or manner of determining the same, maturity value, time of maturity, provisions with respect to redemption prior to maturity, at par or at a premium, sinking fund and reserve requirements, and other particulars as to the form of such bonds, within the limitations mentioned herein, shall be determined by the State Treasurer with the approval of the Governor as he or she may deem for the best interests of the State. Such bonds shall contain on the face thereof the statement that they are issued for the purposes mentioned in, under the authority of, and in conformity with the authorizing act, and that the form and other particulars and details thereof have been duly determined by the State Treasurer, with the approval of the Governor; and such statement shall be conclusive evidence of the liability of the State to any bona fide holder thereof, and the bonds so issued shall be the lawful obligations of the State.

HISTORY: Added 1959, No. 24 , § 2, eff. March 10, 1959; amended 1979, No. 205 (Adj. Sess.), § 156, eff. May 9, 1980; 1985, No. 125 (Adj. Sess.), § 1, eff. April 18, 1986; 1989, No. 276 (Adj. Sess.), § 22, June 20, 1990; 1993, No. 19 , § 2, eff. May 11, 1993.

§ 953. Sales, record.

The State Treasurer, with the approval of the Governor, is hereby authorized to sell such bonds at such prices, in such amount, at such times, and in such manner, with or without advertising the same, as he or she shall determine to be for the best interests of the State, at public or private sale. The State Treasurer shall keep an accurate record of each and every bond when issued, the number and denomination of each bond when issued, when and where payable, to whom sold, and the rate of interest or the investment return thereon and shall keep an accurate record of all payments of interest, principal, investment return, and maturity value. Interest and the investment return on such bonds shall be exempt from taxation in this State.

HISTORY: Added 1959, No. 24 , § 3, eff. March 10, 1959; amended 1989, No. 276 (Adj. Sess.), § 23, eff. June 20, 1990.

§ 954. Proceeds.

1. The proceeds arising from the sale of such bonds, inclusive of any premiums, shall be applied to the purposes for which they were authorized and such purposes shall be considered to include the expenses of preparing, issuing, and marketing such bonds and any notes issued under section 955 of this title, and amounts for reserves, but no purchasers of such bonds shall be in any way bound to see to the proper application of the proceeds thereof. The State Treasurer shall pay the interest on, principal of, investment return on, and maturity value of such bonds and notes as the same fall due or accrue without further order or authority. The State Treasurer, with the approval of the Governor, may establish sinking funds, reserve funds, or other special funds of the State as he or she may deem for the best interests of the State. To the extent not otherwise provided, the amount necessary each year to fulfill the maturing principal and interest of, investment return and maturity value of, and sinking fund installments on all such bonds then outstanding shall be included in and made a part of the annual appropriation bill for the expense of State government, and such principal and interest on, investment return and maturity value of, and sinking fund installments on the bonds as may come due before appropriations for the fulfillment thereof have been made shall be fulfilled from the applicable debt service fund.
2. The State Treasurer is authorized to allocate the estimated cost of bond issuance or issuances to the entities to which funds are appropriated by a capital construction act and for which bonding is required as the source of funds. If estimated receipts are insufficient, the State Treasurer shall allocate additional costs to the entities. Any remaining receipts shall not be expended, but carried forward to be available for future capital construction acts. If the source of funds appropriated by a capital construction act is other than by issuance of bonds, the State Treasurer is authorized to allocate the estimated cost of ongoing debt management services to the entities to which those funds are appropriated.
3. Notwithstanding any other provisions of law, the State Treasurer, with the approval of the Secretary of Administration, is hereby authorized to transfer to any authorized projects unspent proceeds derived from the sale of State bonds or notes previously issued for projects heretofore authorized, and the State Treasurer is hereby further authorized to issue bonds or notes of the State to replenish such transferred funds for application to the original authorized capital projects.

HISTORY: Added 1959, No. 24 , § 4, eff. March 10, 1959; amended 1961, No. 157 , eff. June 14, 1961; 1989, No. 276 (Adj. Sess.), § 24, eff. June 20, 1990; 1995, No. 185 (Adj. Sess.), § 41a, eff. May 22, 1996; 1999, No. 29 , § 22, eff. May 19, 1999; 2001, No. 61 , § 32, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), § 19, eff. June 21, 2002; 2009, No. 33 , § 63; 2011, No. 63 , § F.102, eff. June 2, 2011; 2011, No. 104 (Adj. Sess.), § 34, eff. May 7, 2012.

§ 955. Anticipation of proceeds.

Pending the issue of said bonds, the State Treasurer, with the approval of the Governor, may use any available cash in the Treasury for the purposes for which the bonds were authorized and restore the same from the proceeds of said bonds. Also, the State Treasurer, with the approval of the Governor, may borrow upon notes of the State sums of money in anticipation of the proceeds of the bonds. Such notes shall be issued on such terms and at such times as they may determine. Each such note shall mature not more than two years from its date, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within the required period of two years. The authority hereby granted is in addition to and not in limitation of any other authority.

HISTORY: Added 1959, No. 24 , § 5, eff. March 10, 1959; amended 1993, No. 19 , § 3, eff. May 11, 1993.

§ 956. Time available.

Unless otherwise specifically provided as to any particular appropriation to be raised by the issue of bonds, provisions of law relating to the lapse of unexpended appropriations shall not apply.

HISTORY: Added 1959, No. 24 , § 6, eff. March 10, 1959.

§ 957. Consolidation.

The bonds authorized by one or more acts of the Legislature may in the discretion of the officers issuing the same be combined upon their issue into one or more consolidated issues. The particular bonds of such consolidated issue issued under each authority may but need not be designated by number or otherwise. The bonds of such consolidated issues may be designated by such titles as may be deemed appropriate by such officers (which shall be in substitution for any titles prescribed by the authorizing acts) and shall contain on the face thereof the statement that they are issued for the purposes mentioned in, under the authority of, and in conformity with the authorizing acts (instead of the statement prescribed above or in the authorizing act) and such statement shall be conclusive evidence of the liability of the State to any bona fide holder thereof, and the bonds so issued shall be the lawful obligations of the State.

HISTORY: Added 1959, No. 24 , § 7, eff. March 10, 1959.

§ 958. Expiration of office.

Any bonds or notes issued pursuant to this subchapter, if properly executed by the officers of the State in office on the date of the signing or on the date of imprinting of the facsimile signature, as the case may be, shall be valid and binding according to their terms, notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall have for any reason ceased to hold office.

HISTORY: Added 1959, No. 24 , § 8, eff. March 10, 1959.

§ 959. Repealed. 1989, No. 52, § 17(a), eff. May 17, 1989.

§ 960. Issuance of bonds.

Issuance of bonds authorized by the General Assembly for a given fiscal year may, in the discretion of the State Treasurer with the approval of the Governor, be issued in the months of May or June preceding that fiscal year, or at any time thereafter and until such authorization is rescinded by the General Assembly prior to the issuance of such bonds.

HISTORY: Added 1981, No. 233 (Adj. Sess.), § 14(c); amended 1999, No. 148 (Adj. Sess.), § 87, eff. May 24, 2000.

§ 961. Refunding bonds.

1. The State Treasurer, with the approval of the Governor, is hereby authorized to issue general obligation bonds in order to refund all or any portion of one or more issues of outstanding general obligation bonds at any time after the issuance of the bonds to be refunded. The State Treasurer, with the approval of the Governor, is authorized to refinance outstanding certificates of participation or outstanding long-term lease purchase agreements through the issuance of general obligation bonds or notes of the State of Vermont or certificates of participation. To the extent available, any reduction in debt service coming from such refunding shall be used to offset General Fund debt service in the fiscal year of such reductions.
2. The State Treasurer, prior to the issuance of refunding bonds, shall have authority to contract on behalf of the State with a bank or trust company authorized to do business in this State for the purpose of having such bank or trust company act as the escrow agent of the proceeds, inclusive of any premium, from the sale of such refunding bonds, together with all income derived from the investment of such proceeds, and any other monies to be provided by the State to effectuate the refunding.
3. The proceeds, inclusive of any premium, from the sale of refunding bonds, immediately upon receipt, shall be placed in escrow with the escrow agent in accordance with the escrow contract.  That portion of such proceeds which shall be required for the payment of the principal of and interest on or investment return or maturity value of the bonds to be refunded, including any redemption premiums, shall be irrevocably committed and pledged to such purpose and the holders of such bonds to be refunded shall have a lien upon such monies and the investments thereof held by the escrow holder.  The pledge and lien provided for in this subsection shall become valid and binding upon the issuance of the refunding bonds and the monies and investments held by the escrow agent shall immediately be subject thereto without any further act.  Such pledge and lien shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the State, irrespective of whether such parties have notice thereof.  Neither the escrow contract, nor any other instrument relating to such pledges and liens, need be filed or recorded.
4. The refunding bonds authorized by this section shall be issued in accordance with the provisions of this chapter, provided that installments on such refunding bonds need not be payable in substantially equal or diminishing amounts and provided further that no notes may be issued in anticipation of the proceeds of said refunding bonds.
5. [Repealed.]

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 2, eff. April 18, 1986; amended 1989, No. 276 (Adj. Sess.), §§ 25, 28, eff. June 20, 1990; 1995, No. 185 (Adj. Sess.), § 65, eff. May 22, 1996.

§ 962. Private use compliance, notice, and approval.

Any entity receiving an appropriation financed with proceeds of tax-exempt bonds of the State shall notify and receive approval from the State Treasurer and the Secretary of Administration at least 90 days prior to finalizing an agreement with a nonpublic or for-profit entity to rent, lease, sell, or otherwise dispose of property financed with those proceeds and also shall pay any cost related to compliance with the Internal Revenue Code of 1986, as amended, resulting from disposal of the property. This notification requirement shall not apply if the proceeds were included in the five percent allowance for private use prior to the issuance of bonds, or if the proceeds were provided, or the property was disposed of, as a grant or otherwise with no payment or repayment made or required to be made to the State or to the entity.

HISTORY: Added 2011, No. 104 (Adj. Sess.), § 35, eff. May 7, 2012.

§ 971. Repealed. 1966, No. 32, § 3.

§ 972. Transportation Infrastructure Bonds.

1. The Treasurer may issue bonds pursuant to this subchapter from time to time in amounts authorized by the General Assembly in its annual transportation bill. Bonds issued under this section shall be referred to as “Transportation Infrastructure Bonds.”
2. As used in this subchapter, the term “debt service obligations” is as defined in section 951a of this title.
3. Debt service obligations of the bonds shall be fulfilled or satisfied in accordance with the terms of any trust agreement pertaining to the bonds from the Transportation Infrastructure Bonds Debt Service Fund.
4. Funds raised from bonds issued under this section may be used to pay for or fund:
   1. the rehabilitation, reconstruction, or replacement of State bridges and culverts;
   2. the rehabilitation, reconstruction, or replacement of municipal bridges and culverts;
   3. the rehabilitation, reconstruction, or replacement of State roads, railroads, airports, and necessary buildings that after such work, have an estimated minimum remaining useful life of 30 years or more; and
   4. a permanent reserve required by a trust agreement entered into to secure the bonds.
5. Pursuant to section 953 of this title, interest and the investment return on the bonds shall be exempt from taxation in this State.
6. Bonds issued under this section shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity. The bonds shall likewise be legal investments for all public officials authorized to invest in public funds.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.103, eff. June 2, 2011.

§ 973. Issuance of bonds.

1. Transportation Infrastructure Bonds may be issued at one time or in a series from time to time in any form permitted by law, in such manner and on such terms and conditions as the State Treasurer may determine to be in the best interests of the State, except that the State Treasurer shall determine the following with the approval of the Governor:
   1. date of issuance;
   2. place of payment;
   3. rate of interest (which may be fixed or variable) or the manner of determining such rate of interest;
   4. original stated value;
   5. investment returns or manner of determining the investment returns;
   6. maturity value, time of maturity, and provisions with respect to redemption prior to maturity;
   7. whether to issue the bonds at par, premium, or discount;
   8. sinking fund and reserve requirements;
   9. amount and manner of issuance; and
   10. other particulars as to the form of such bonds within the limitations of this subchapter.
2. The State Treasurer shall determine the annual payment schedule for the bonds, including debt service and sinking fund payments, if any, as he or she may deem to be in the best interests of the State. However, any bond issued under this subchapter shall mature not later than 30 years after the date of issuance. Installments on the bonds need not be payable in substantially equal or diminishing amounts. The last bond payment shall be made not later than 30 years after the date of issuance.
3. The State Treasurer may determine at the time of issuance to apply all or a portion of any net premium to the costs of issuance, other related financing costs, or the payment of the principal or interest to come due. If net premium is applied to costs of issuance, the amount of the premium shall not be included in the net proceeds of the issue. Net premium not applied to costs of issuance shall be included in the net proceeds of the issue and may be used for any of the authorized purposes of the bond proceeds.
4. The debt service obligations of Transportation Infrastructure Bonds which require a cash payment shall be payable in lawful money of the United States or of the country in which the bonds are sold.
5. Transportation Infrastructure Bonds shall be registered pursuant to section 981 of this title.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.104, eff. June 2, 2011.

§ 974. Security documents.

1. The State Treasurer is authorized to secure bonds authorized under this subchapter by a trust agreement that pledges or assigns monies in the Transportation Infrastructure Bond Fund, by additional security, insurance, or other forms of credit enhancement that may be secured with the bonds on a parity or subordinate basis, or by both.
2. Any trust agreement or credit enhancement agreement entered into pursuant to this section shall be valid and binding from the time of the agreement without any physical delivery or further act and without any filing or recording under the Uniform Commercial Code or otherwise, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise, irrespective of whether such parties have notice thereof.
3. Any trust agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as determined by the State Treasurer, including provisions relating to the establishment of reserves; the issuance of additional or refunding bonds, whether or not secured on a parity basis; the application of receipts, monies, or funds pledged pursuant to the agreement; and other matters deemed necessary or desirable by the State Treasurer for the security of the bonds, and may also regulate the custody, investment, and application of monies.
4. For payment of debt service obligations of Transportation Infrastructure Bonds, the full faith and credit of the State is hereby pledged. However, if pledging of full faith and credit of the State is not necessary to market a Transportation Infrastructure Bond in the best interests of the State, the Treasurer shall enter into an agreement that establishes that the full faith and credit of the State is not pledged for payment of debt service obligations of the bond. In determining whether to pledge the full faith and credit of the State, the State Treasurer shall consider the anticipated effect of such a pledge on the credit standing of the State, the marketability of the Transportation Infrastructure Bond, and other factors he or she deems appropriate.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.105, eff. June 2, 2011.

§ 975. Proceeds.

Proceeds from the sale of bonds may be expended for the authorized purposes of the bonds, including the expenses of preparing, issuing, and marketing the bonds; any notes issued under section 976 of this title; and amounts for any reserves. However, no purchasers of the bonds shall be bound to see to the proper application of the proceeds thereof.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.106, eff. June 2, 2011.

§ 975a. Authority of Treasurer.

The Treasurer may fulfill debt service obligations of bonds issued under this subchapter as they fall due without further order or authority. All such fulfillments shall be accounted for as a payment or provision made from the Transportation Infrastructure Bonds Debt Service Fund.

HISTORY: Added 2011, No. 63 , § F.107, eff. June 2, 2011.

§ 975b. Debt service appropriations.

The General Assembly shall appropriate in the annual appropriations bill the amount necessary from the appropriate funds to pay the debt service obligations of Transportation Infrastructure Bonds that are due in the fiscal year covered by the appropriations bill.

HISTORY: Added 2011, No. 63 , § F.108, eff. June 2, 2011.

§ 976. Anticipation of proceeds.

1. Pending the issue of Transportation Infrastructure Bonds, the State Treasurer, with the approval of the Governor, may use any available cash in the Transportation Infrastructure Bond Fund for the purposes for which the bonds were authorized, and shall restore the borrowed funds from the proceeds of the bonds.
2. The State Treasurer, with the approval of the Governor, may borrow upon notes of the State sums of money in anticipation of the proceeds of the bonds. Notes issued under this subsection shall be issued on such terms and at such times as the Treasurer and Governor may determine, and shall mature not more than three years from the date of issuance, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within the required period of three years.
3. The authority granted under this section is in addition to and not in limitation of any other authority.

HISTORY: Added 2009, No. 50 , § 28.

§ 977. Refunding bonds.

The State Treasurer, with the approval of the Governor, is hereby authorized to issue Transportation Infrastructure Bonds in order to refund all or any portion of outstanding transportation bonds at any time after the issuance of the bonds to be refunded pursuant to subsections 961(b), (c), and (d) of this title.

HISTORY: Added 2009, No. 50 , § 28.

§ 978. Pledge.

The General Assembly hereby pledges and covenants with holders of the bonds issued under this subchapter that the State will fulfill the terms of any agreement made with the holders of Transportation Infrastructure Bonds and will not in any way impair the rights or remedies of the holders of the bonds until the bonds, interest, and all costs associated with the bonds are fully paid.

HISTORY: Added 2009, No. 50 , § 28.

§ 979. Authorities.

In addition to the provisions of this subchapter, the following provisions of this title shall apply to Transportation Infrastructure Bonds:

1. sections 951a, 953, 956, 958, and 960;
2. subsection 954(c), except that transfers shall be made only among projects to be funded with Transportation Infrastructure Bonds; and
3. section 957, except that consolidation may be only among Transportation Infrastructure Bonds, and the bonds shall be the lawful obligation of the Transportation Infrastructure Bond Fund and not of the remaining revenues of the State unless the Treasurer has agreed to pledge the full faith and credit of the State pursuant to subsection 974(d) of this title.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.109, eff. June 2, 2011.

§ 980. Authority to issue Transportation Infrastructure Bonds.

The State Treasurer is authorized to issue Transportation Infrastructure Bonds pursuant to section 972 of this title for the purpose of funding future appropriations only as approved by the General Assembly.

HISTORY: Added 2009, No. 50 , § 28.

§ 981. Form of bonds or notes.

Notwithstanding any general or special law to the contrary, the State may issue bonds or notes in coupon form payable to the bearer, in registered form without coupons, or in book entry form. Bonds or notes other than those in book entry form shall be signed by the manual or facsimile signature of the State Treasurer or his or her deputy and countersigned by the manual or facsimile signature of the Secretary of State or his or her deputy, and the interest coupons thereon, if any, shall bear the facsimile signature of the State Treasurer. The Seal of the State shall be affixed or imprinted on the bonds or notes. The date of issuance, place of payment, rate of interest (which may be fixed or variable) or manner of determining such rate of interest, original stated value, investment returns or manner of determining the same, maturity value, time of maturity, provisions with respect to redemption prior to maturity, at par or at a premium, sinking fund and reserve requirements, and other particulars as to the form of such bonds within the limitations mentioned herein, shall be determined by the State Treasurer with the approval of the Governor as he or she may deem for the best interests of the State.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983; amended 1989, No. 276 (Adj. Sess.), § 26, eff. June 20, 1990; 1993, No. 19 , § 4, eff. May 11, 1993.

§ 982. Transfer agent.

The State Treasurer shall act as transfer agent or registrar for the exchange or transfer of registered bonds or notes or maintain the records so that bonds or notes in book entry form may be effected or contract with or otherwise designate a bank, trust company, or other person to act as transfer agent or registrar for the bonds or notes or maintain the records so that bonds or notes in book entry form may be effected. Such bank, trust company, or other person, which may include the federal government or any of its agencies or instrumentalities, or any officer, agency, or instrumentality of the State, may be located or have its principal office inside or outside the State; provided, however, that any such transfer agent or registrar (other than the federal government or any of its agencies or instrumentalities) not domiciled in the State or having its principal business in the State, shall qualify and be authorized to do business in the State, or shall otherwise render itself amenable to personal service of process in the State and shall submit itself to personal jurisdiction in the courts of the State. Bonds or notes in book entry form shall be effected by means of entries on the records of the State Treasurer or his or her designee which shall reflect the description of the issue, the principal amount, maturity value, the interest rate, investment returns, the maturity date, the owner of the bonds or notes, and such other information as is deemed appropriate. The State Treasurer or other designated person may effect conversions between book entry bonds or notes and registered bonds or notes for owners of bonds or notes who request such a change. The State Treasurer or other designated transfer agent or registrar shall issue a confirmation of the transaction in the form of a written advice.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983; amended 1989, No. 276 (Adj. Sess.), § 27, eff. June 20, 1990.

§ 983. Confidential registry.

The books of registry held by the State Treasurer or other designated registrar shall be confidential and the information contained therein shall not be available to the public.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983.

§ 984. Additional powers.

The State Treasurer or his or her designee shall have such additional powers as are necessary to effectuate the purposes of this subchapter.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983.

§ 985. Application.

This subchapter supersedes any existing general or special law of the State with respect to the matters contained herein as they apply to bonds or notes issued by the State, but shall not diminish or restrict any powers heretofore granted by law.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983.

§ 991. Definitions.

As used in this subchapter:

1. “Private activity bond” shall have the meaning ascribed to it in Section 141 of the Internal Revenue Code of 1986, as amended.  The use of such term in this subchapter is for reference purposes only, and shall not imply that the State of Vermont agrees that any bond issued in accordance with such section is for a “private activity.”
2. “Issuing authority” means any agency or governmental unit or instrumentality of the State, or any public corporation established by the State, authorized by law to issue private activity bonds, including municipal corporations. It shall include, without limiting the generality of the foregoing, the Vermont Economic Development Authority, the Vermont Housing Finance Agency, the Vermont Municipal Bond Bank, and the Vermont Student Assistance Corporation.

HISTORY: Added 1985, No. 25 , § 1; amended 1987, No. 36 , § 1, eff. Jan. 1, 1988; 1993, No. 89 , § 3(a), eff. June 15, 1993.

§ 992. Allocation; authority.

1. The State of Vermont hereby elects, under Section 146 of the Internal Revenue Code of 1986, as amended, to establish its formula for allocating the State ceiling among the governmental units of a state having authority to issue “private activity bonds” the interest on which is not included in gross income of recipients thereof for federal income tax purposes.  The State allocation formula established under this subchapter shall apply to all private activity bonds that all issuing authorities may issue in any calendar year.
2. 1. One hundred percent of Vermont’s federally allocated State ceiling on the volume of private activity bonds that may be issued in any calendar year is hereby allocated to the State. The Emergency Board established by chapter 3 of this title shall be the duly authorized agency of the State having the power to apportion the State’s private activity bond ceiling to and among the constituted issuing authorities empowered to issue such bonds. The Emergency Board shall exercise this power on or before January 31 in each calendar year by apportioning the ceiling among issuing authorities, reserving such portion as the Board deems appropriate in the form of a contingency allocation to be available to all issuing authorities at the discretion of the Emergency Board, pursuant to policies and guidelines established by the Board. (b) (1) One hundred percent of Vermont’s federally allocated State ceiling on the volume of private activity bonds that may be issued in any calendar year is hereby allocated to the State. The Emergency Board established by chapter 3 of this title shall be the duly authorized agency of the State having the power to apportion the State’s private activity bond ceiling to and among the constituted issuing authorities empowered to issue such bonds. The Emergency Board shall exercise this power on or before January 31 in each calendar year by apportioning the ceiling among issuing authorities, reserving such portion as the Board deems appropriate in the form of a contingency allocation to be available to all issuing authorities at the discretion of the Emergency Board, pursuant to policies and guidelines established by the Board.
   2. The Board may delegate the power and authority granted to it under this section to the Governor, subject to the Board’s policies and guidelines, for any assignments or reallocations of any unused portion of the ceiling made after December 20 in any calendar year. All assignments or reallocations of the private activity bond ceiling made pursuant to this section shall be made in writing in accordance with Section 146 of the Internal Revenue Code of 1986.

HISTORY: Added 1985, No. 25 , § 1; amended 1987, No. 36 , § 2, eff. May 11, 1987; 2017, No. 74 , § 135.

§ 993. Public approval, out-of-state issuers.

Notwithstanding any provision to the contrary in Title 9, the Governor, in consultation with the State Treasurer, shall have exclusive authority to grant any public approval required under Section 147(f)(2) of the Internal Revenue Code of 1986, as amended, pertaining to the proposed issuance of qualified private activity bonds when the purpose of the bonds is to finance or refinance purposes to be located within the State and the bonds are proposed by any issuers of qualified private activity bonds organized under the laws of a jurisdiction other than the State of Vermont. Approval shall not be withheld unless the Governor, in consultation with the State Treasurer, determines in good faith that the issuance is not financially sound.

HISTORY: Added 2011, No. 104 (Adj. Sess.), § 36, eff. May 7, 2012.

§ 994. Advisory Committee.

1. 1. Creation; composition.   There is created a Private Activity Bond Advisory Committee, which shall consist of the following members: (a) (1) Creation; composition.   There is created a Private Activity Bond Advisory Committee, which shall consist of the following members:
      1. the State Treasurer or his or her designee;
      2. the Secretary of Administration or his or her designee;
      3. the Secretary of Commerce and Community Development or his or her designee;
      4. two members who shall be representatives of the public, appointed by the Governor.
   2. Each public representative shall serve for a two-year term beginning February 1, or until his or her successor is appointed. The terms of the public representatives shall be staggered so that only one member’s term expires in each year.
   3. The State Treasurer or designee shall serve as Chair of the Committee.
   4. The Office of the State Treasurer shall provide administrative support to the Committee.
   5. Public representatives may receive reimbursement of expenses and per diem compensation pursuant to section 1010 of this title.
2. Committee charge.
   1. The Committee shall survey the expected need for private activity bond allocations among constituted and eligible issuing authorities empowered to issue such bonds on an annual basis.
   2. 1. The Committee shall develop guidelines for allocation of private activity bonding capacity designed to maximize the availability of tax exempt financing among various sectors of the Vermont economy with a focus on economic development, housing, education, redevelopment, public works, energy, waste management, waste and recycling collection, transportation, and other activities that the Committee determines will benefit the citizens of Vermont. (2) (A) The Committee shall develop guidelines for allocation of private activity bonding capacity designed to maximize the availability of tax exempt financing among various sectors of the Vermont economy with a focus on economic development, housing, education, redevelopment, public works, energy, waste management, waste and recycling collection, transportation, and other activities that the Committee determines will benefit the citizens of Vermont.
      2. The guidelines should support efforts and entities that increase the number of good-paying jobs in the State, promote economic development, support affordable housing, and affordable access to postsecondary education and training, and encourage the use of Vermont’s human and natural resources in endeavors that maximize Vermont’s comparative economic advantages, and be flexible enough to include new and innovative uses of private activity bonds, consistent with federal regulations and the Internal Revenue Code.
   3. The Committee shall meet at least annually and shall hold at least one public hearing prior to submitting its recommendations to the Emergency Board. The Committee shall further submit its recommendations in an annual report of its activities to the Governor and the General Assembly.
   4. On or before December 1 of each year, the Committee shall make recommendations to the Emergency Board on the allocation, including any amounts reserved for contingency allocations, of the State’s private activity bond ceiling for the following calendar year to and among the constituted issuing authorities empowered to issue such bonds.
   5. On its own initiative, at the request of the Governor or at the request of the Emergency Board, the Committee may make recommendations to the Governor or Emergency Board concerning assignments or reallocation of any unused portion of the ceiling subsequent to an allocation by the Emergency Board in a given year.

HISTORY: Added 2011, No. 110 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2013, No. 1 , § 98.

§ 995. Agreements for the exemption of interest.

1. It is hereby found and determined that proposed amendments to the Internal Revenue Code of 1986, including, particularly, Section 103 thereof, and the regulations of the U.S. Treasury Department thereunder, require the State, municipal corporations, and agencies and instrumentalities thereof (hereinafter collectively referred to as “Issuers”) to enter into agreements, make covenants with the holders of their respective obligations, or take other actions as a condition to the noninclusion of interest on their respective obligations in gross income of recipients thereof for federal income tax purposes.  It is hereby further found and determined that it is in the best interests of such issuers to leave no ambiguity as to whether such issuers have the authority to enter into such agreements, make such covenants, or take such other actions.
2. Issuers are hereby authorized and empowered to enter into any agreement, make any covenant, or take any other action required to assure that interest on their respective bonds is not included in gross income of the recipients thereof for federal income tax purposes.
3. Notwithstanding the provisions of 24 V.S.A. § 1753 , 24 V.S.A. § 4648 , and 32 V.S.A. § 954 , or any other general, special, or local law to the contrary, issuers are hereby authorized to appropriate and pay to the U.S. Treasury Department, or any other agency of the United States, all or a portion of the income received by such issuers from the investment or reinvestment of the proceeds of their respective bonds, in the amount and to the extent necessary to assure that interest on their respective bonds is not included in gross income of the recipients thereof for federal income tax purposes.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, no. 36, § 3, eff. May 11, 1987.

§ 996. Delegation authorized.

The legislative branch of a municipality or county, however defined, may delegate to the treasurer or chief fiscal officer of a municipal corporation the power to enter into any agreement, make any covenant, or take any other action described in section 995 of this title. The State Treasurer may delegate to the treasurer or chief financial officer of any State instrumentality the power to enter into any agreement, make any covenant, or take any other action described in section 995 of this title.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36 , § 4, eff. May 11, 1987.

§ 997. State covenant.

To the extent that an issuer has entered into an agreement, covenanted, or acted to assure that interest on its obligations is not included in gross income of the recipients thereof for federal income tax purposes pursuant to this chapter, the State will not limit or alter the power to perform such agreement or covenant or take such action or in any way impair the rights and remedies of any such holders, until such bonds, together with the interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged. Issuers are hereby authorized to include this pledge and agreement of the State in any agreement with the holders of their respective obligations.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36 , § 5, eff. May 11, 1987.

§ 998. Loans and grants.

In the event the State Treasurer issues bonds the interest on which is not to be included in gross income for federal income tax purposes, to the extent that such funds are made available to any municipal corporation, any instrumentality thereof or of the State, or to any other person, the State Treasurer may require the recipients of the funds to enter into agreements regulating the use and investments of funds made available to them, requiring them to account to the State for the investment of such funds, and requiring them to pay to the State earnings on such funds which the State is required to rebate to the federal government. Recipients are authorized to enter into such agreements with the State which shall be valid and enforceable against them.

HISTORY: Added 1987, No. 36 , § 6, eff. May 11, 1987.

§ 999. Interest remittance and payments.

The State Treasurer may remit to the U.S. Treasury Department or any other agency of the United States funds earned on investments as necessary in order to maintain the noninclusion of interest on the General Fund obligations and the Transportation Fund obligations authorized by the General Assembly in the gross income of recipients thereof. Such remittances may be made from funds appropriated for debt service interest. If those appropriations become insufficient to meet interest and other related payments, subject to the approval of the Emergency Board, there is appropriated such amounts as may be necessary to eliminate the insufficiency in the State appropriations for interest.

HISTORY: Added 1995, No. 178 (Adj. Sess.), § 267.

§ 1000. Affordable amount of general obligation bond authorization.

When the General Assembly authorizes the issuance of new long-term general obligation bonds, it shall consider the maximum amount of such bonds recommended as prudent for the fiscal year concerned by the Capital Debt Affordability Advisory Committee created for this purpose by this subchapter. This requirement shall apply to the authorizations of all State tax supported general obligation bonds, which are secured by the State General and Transportation Funds.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 1.

§ 1001. Capital Debt Affordability Advisory Committee.

1. Committee established.   A Capital Debt Affordability Advisory Committee is hereby created with the duties and composition provided by this section.
2. Committee duties.
   1. The Committee shall review annually the size and affordability of the net State tax-supported indebtedness and submit to the Governor and to the General Assembly an estimate of the maximum amount of new long-term net State tax-supported debt that prudently may be authorized for the next fiscal year. The estimate of the Committee shall be advisory and in no way bind the Governor or the General Assembly.
   2. The Committee shall conduct ongoing reviews of the amount and condition of bonds, notes, and other obligations of instrumentalities of the State for which the State has a contingent or limited liability or for which the State Legislature is permitted to replenish reserve funds, and, when deemed appropriate, recommend limits on the occurrence of such additional obligations to the Governor and to the General Assembly.
   3. The Committee shall conduct ongoing reviews of the amount and condition of the Transportation Infrastructure Bond Fund established in 19 V.S.A. § 11f and of bonds and notes issued against the Fund for which the State has a contingent or limited liability.
3. Committee estimate of a prudent amount of net State tax-supported debt; affordability considerations.   On or before September 30 of each year, the Committee shall submit to the Governor and the General Assembly the Committee’s estimate of net State tax-supported debt that prudently may be authorized for the next fiscal year, together with a report explaining the basis for the estimate. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. In developing its annual estimate, and in preparing its annual report, the Committee shall consider:
   1. The amount of net State tax-supported indebtedness that, during the next fiscal year, and annually for the following nine fiscal years:
      1. will be outstanding; and
      2. has been authorized but not yet issued.
   2. A projected schedule of affordable net State tax-supported bond authorizations for the next fiscal year and annually for the following nine fiscal years. The assessment of the affordability of the projected authorizations shall be based on all of the remaining considerations specified in this section.
   3. Projected debt service requirements during the next fiscal year, and annually for the following nine fiscal years, based upon:
      1. existing outstanding debt;
      2. previously authorized but unissued debt; and
      3. projected bond authorizations.
   4. The criteria that recognized bond rating agencies use to judge the quality of issues of State bonds, including:
      1. existing and projected total debt service on net tax-supported debt as a percentage of combined General and Transportation Fund revenues, excluding surpluses in these revenues that may occur in an individual fiscal year; and
      2. existing and projected total net tax-supported debt outstanding as a percentage of total State personal income.
   5. The principal amounts currently outstanding, and balances for the next fiscal year, and annually for the following nine fiscal years, of existing:
      1. obligations of instrumentalities of the State for which the State has a contingent or limited liability;
      2. any other long-term debt of instrumentalities of the State not secured by the full faith and credit of the State, or for which the State Legislature is permitted to replenish reserve funds; and
      3. to the maximum extent obtainable, all long-term debt of municipal governments in Vermont that is secured by general tax or user fee revenues.
   6. The impact of capital spending upon the economic conditions and outlook for the State.
   7. The cost-benefit of various levels of debt financing, types of debt, and maturity schedules.
   8. Any projections of capital needs authorized or prepared by the Agency of Transportation, the Joint Fiscal Office, or other agencies or departments.
   9. Any other factor that is relevant to:
      1. the ability of the State to meet its projected debt service requirements for the next five fiscal years; or
      2. the interest rate to be borne by, the credit rating on, or other factors affecting the marketability of State bonds.
   10. The effect of authorizations of new State debt on each of the considerations of this section.
4. Committee composition.
   1. Committee membership shall consist of:
      1. As ex officio members:
         1. the State Treasurer;
         2. the Secretary of Administration; and
         3. a representative of the Vermont Municipal Bond Bank chosen by the directors of the Bank.
      2. Two individuals with experience in accounting or finance, who are not officials or employees of State government appointed by the Governor for six-year terms.
      3. The Auditor of Accounts who shall be a nonvoting ex officio member.
      4. One person who is not an official or employee of State government with experience in accounting or finance appointed by the State Treasurer for a six-year term.
      5. The Legislative Economist or other designee of the Joint Fiscal Office, who shall be a nonvoting ex officio member.
   2. The State Treasurer shall be the Chair of the Committee.
5. Other attendants of committee meetings.   Staff of the Legislative Counsel and the Joint Fiscal Committee shall be invited to attend Committee meetings for the purpose of fostering a mutual understanding between the Executive and Legislative Branches on the appropriate statistics to be used in committee reviews, debt affordability considerations, and recommendations.
6. Information.   All public entities whose liabilities are to be considered by the Committee shall annually provide the State Treasurer with the information the Committee deems necessary for it to carry out the requirements of this subchapter.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 1; amended 2007, No. 121 (Adj. Sess.), § 28; 2007, No. 200 (Adj. Sess.), § 25, eff. June 9, 2008; 2009, No. 50 , § 31; 2013, No. 142 (Adj. Sess.), § 65; 2019, No. 42 , § 26a, eff. May 30, 2019.

§ 1001a. Reports.

1. The Capital Debt Affordability Advisory Committee shall prepare and submit consistent with 2 V.S.A. § 20(a) a report on:
   1. general obligation debt, pursuant to subsection 1001(c) of this title; and
   2. how many, if any, Transportation Infrastructure Bonds have been issued and under what conditions.
2. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the reports to be made under this section.

HISTORY: Added 2003, No. 122 (Adj. Sess.), § 294h; amended 2009, No. 50 , § 32, eff. June 1, 2009; 2013, No. 142 (Adj. Sess.), § 66; 2017, No. 84 , § 28, eff. June 16, 2017.

§ 1001. Repealed. 1965, No. 125, § 23, eff. July 2, 1965.

§ 1002. Salary of Governor-Elect.

1. The person receiving the major number of votes for Governor as determined by the certificates transmitted to the Secretary of State under provisions of 17 V.S.A. § 2592 shall be designated the Governor-Elect.
2. The Governor-Elect shall be entitled to receive a salary of 70 percent of the regular weekly salary of the Governor for the period before a new Governor qualifies for office. This amount shall be reduced by the amount the Governor-Elect receives from the State during this period for services performed in fulfilling the duties of any office to which he or she was elected or appointed.

HISTORY: Added 1963, No. 121 ; amended 1987, No. 121 , § 1; 2011, No. 3 , § 91, eff. Feb. 17, 2011; 2015, No. 58 , § B.1109.

§ 1003. State officers.

1. Each elective officer of the Executive Department is entitled to an annual salary as follows:

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2. The Governor may appoint each officer of the Executive Branch listed in this subsection at a starting salary ranging from the base salary stated for that position to a salary that does not exceed the maximum salary unless otherwise authorized by this subsection. The maximum salary for each appointive officer shall be 50 percent above the base salary. Annually, the Governor may grant to each of those officers an annual salary adjustment subject to the maximum salary. The annual salary adjustment granted to officers under this subsection shall not exceed the average rate of adjustment available to classified employees under the collective bargaining agreement then in effect. In addition to the annual salary adjustment specified in this subsection, the Governor may grant a special salary increase subject to the maximum salary, or a bonus, to any officer listed in this subsection whose job duties have significantly increased, or whose contributions to the State in the preceding year are deemed especially significant. Special salary increases or bonuses granted to any individual shall not exceed the average rate of adjustment available to classified employees under the collective bargaining agreement then in effect.
   1. Heads of the following Departments and Agencies:

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   2. The Secretary of Administration may include the Director of the Office of Professional Regulation in any pay plans that may be established under the authority of subsection 1020(c) of this title, provided the minimum hiring rate does not fall below a base salary, as of January 5, 2020 of $80,041.00 and as of July 4, 2021 of $83,363.00.
   3. If the Chair of the Natural Resources Board is employed on less than a full-time basis, the hiring and salary maximums for that position shall be reduced proportionately.
   4. When a permanent employee is appointed to an exempt position, the Governor may authorize such employee to retain the present salary even though it is in excess of any salary maximum provided in statute.
3. The officers of the Judicial Branch named in this subsection shall be entitled to annual salaries as follows:

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4. Notwithstanding the maximum salary established in subsection (b) of this section, the Defender General shall not receive compensation in excess of the compensation established for the Attorney General in this section.
5. Notwithstanding the maximum salary established in subsection (b) of this section, the maximum salary for the Commissioner of Health shall not exceed $150,000.00.

Annual Salary Annual Salary as of as of January 5, 2020 July 4, 2021 Governor $184,113 $191,754 Lieutenant Governor 78,153 81,396 Secretary of State 116,745 121,590 State Treasurer 116,745 121,590 Auditor of Accounts 116,745 121,590 Attorney General 139,790 145,591

Base Salary Base Salary as of as of January 5, 2020 July 4, 2021 (A) Administration $111,332 $115,952 (B) Agriculture, Food and Markets 111,332 115,952 (C) Financial Regulation 104,079 108,398 (D) Buildings and General Services 104,079 108,398 (E) Children and Families 104,079 108,398 (F) Commerce and Com- munity Development 111,332 115,952 (G) Corrections 104,079 108,398 (H) Defender General 104,079 108,398 (I) Disabilities, Aging, and Independent Living 104,079 108,398 (J) Economic Development 94,413 98,331 (K) Education 111,332 115,952 (L) Environmental Conservation 104,079 108,398 (M) Finance and Management 104,079 108,398 (N) Fish and Wildlife 94,413 98,331 (O) Forests, Parks and Recreation 94,413 98,331 (P) Health 104,079 108,398 (Q) Housing and Community Development 94,413 98,331 (R) Human Resources 104,079 108,398 (S) Human Services 111,332 115,952 (T) Digital Services 111,332 115,952 (U) Labor 104,079 108,398 (V) Libraries 94,413 98,331 (W) Liquor and Lottery 94,413 98,331 (X) [Repealed.] (Y) Mental Health 104,079 108,398 (Z) Military 104,079 108,398 (AA) Motor Vehicles 94,413 98,331 (BB) Natural Resources 111,332 115,952 (CC) Natural Resources Board Chair 94,413 98,331 (DD) Public Safety 104,079 108,398 (EE) Public Service 104,079 108,398 (FF) Taxes 104,079 108,398 (GG) Tourism and Marketing 94,413 98,331 (HH) Transportation 111,332 115,952 (II) Vermont Health Access 104,079 108,398 (JJ) Veterans’ Home 104,079 108,398

Annual Salary as of January 5, 2020 Annual Salary as of July 4, 2020 (1) Chief Justice of Supreme $177,203 $184,557 Court (2) Each Associate Justice 169,121 176,140 (3) Administrative Judge 169,121 176,140 (4) Each Superior judge 160,777 167,449 (5) [Repealed.] (6) Each magistrate 121,224 126,255 (7) Each Judicial Bureau hearing 121,224 126,255 Officer

HISTORY: Added 1965, No. 125 , § 1, eff. July 2, 1965; amended 1966, No. 53 (Sp. Sess.), § 1, eff. Jan. 5, 1966; 1967, No. 126 , § 1, No. 200 , § 1, eff. July 1, 1967, § 9, eff. Jan. 1, 1967; 1969, No. 294 (Adj. Sess.), Pt. IV, § 9, eff. at beginning of respective elective terms in 1971, Pt. V, § 10, eff. April 15, 1970; 1971, No. 191 (Adj. Sess.), §§ 14, 16; 1971, No. 242 (Adj. Sess.), § 2; 1973, No. 117 , §§ 1, 2; 1973, No. 159 (Adj. Sess.), § 2, eff. March 15, 1974; 1973, No. 266 (Adj. Sess.), §§ 18, 19, eff. July 1, 1974; 1975, No. 1 (Sp. Sess.), § 27, eff. Oct. 22, 1975; 1975, No. 1 96 (Adj. Sess.), § 3; 1975, No. 206 (Adj. Sess.), § 1a; 1977, No. 105 , § 19, eff. July 1, 1977; 1977, No. 109 , § 15, eff. July 3, 1977; 1977, No. 204 (Adj. Sess.), § 2; 1977, No. 222 (Adj. Sess.), § 6, eff. July 2, 1978, and Jan. 4, 1979; 1977, No. 232 (Adj. Sess.), § 4; 1979, No. 59 , § 2, eff. July 1, 1979; 1979, No. 141 (Adj. Sess.), § 10; 1981, No. 91 , § 7, eff. July 5, 1981; § 13, eff. upon taking the oath of office in Jan. 1983; § 14, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), §§ 8, 8a-8c; 1983, No. 88 , § 2, eff. July 3, 1983; 1983, No. 95 , § 308; 1983, No. 130 (Adj. Sess.), § 4; 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1983, No. 170 (Adj. Sess.), § 14(b), eff. April 19, 1984; 1983, No. 195 (Adj. Sess.), § 5(a); 1983, No. 243 (Adj. Sess.), §§ 2, 3, 5, 20; 1985, No. 93 , §§ 1, 2; 1985, No. 225 (Adj. Sess.), §§ 2, 3, 4, 21; 1987, No. 76 , § 18; 1987, No. 121 , §§ 2, 3; 1987, No. 183 (Adj. Sess.), §§ 3, 4, 7; 1989, No. 67 , §§ 1, 1a, 3; 1989, No. 187 (Adj. Sess.), § 5; 1989, No. 219 (Adj. Sess.), § 9(a); 1989, No. 225 (Adj. Sess.), § 25(a); 1989, No. 250 (Adj. Sess.), § 3; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1989, No. 277 (Adj. Sess.), §§ 2, 3, 5, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), §§ 2, 5, eff. May 19, 1992; 1993, No. 227 (Adj. Sess.), §§ 1-3; 1995, No. 148 (Adj. Sess.), §§ 16, 17, eff. May 6, 1996; 1995, No. 174 (Adj. Sess.), § 3; 1995, No. 177 (Adj. Sess.), § 1; 1995, No. 180 (Adj. Sess.), § 38; 1995, No. 190 (Adj. Sess.), §§ 1, 11; 1997, No. 28 , § 1, eff. May 15, 1997; 1997, No. 121 (Adj. Sess.), § 30; 1999, No. 40 , § 1, eff. July 4, 1999; 1999, No. 147 (Adj. Sess.), § 4; 2001, No. 66 , § 1; 2003, No. 66 , § 315; 2003, No. 115 (Adj. Sess.), §§ 116, 117, eff. Jan. 31, 2005; 2003, No. 156 (Adj. Sess.), §§ 1-3, eff. July 11, 2004; 2005, No. 66 , § 1; 2007, No. 47 , § 1; 2007, No. 65 , § 116; 2007, No. 206 (Adj. Sess.), § 1; 2011, No. 130 (Adj. Sess.), §§ 4, 5; 2013, No. 50 , § E.802.1; 2013, No. 56 , § 14, retroactively eff. Jan. 2, 2013; 2013, No. 160 (Adj. Sess.), §§ 3, 4; 2015, No. 58 , § B.1110, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F3; 2015, No. 172 (Adj. Sess.), § F4; 2017, No. 191 (Adj. Sess.), §§ 3, 5; 2017, No. 191 (Adj. Sess.), §§ 4, 8, eff. July 1, 2019; 2019, No. 73 , § 42; 2021, No. 74 , §§ F.104, F.105.

§ 1004. Repealed. 1965, No. 125, § 23, eff. July 2, 1965.

§ 1005. Repealed. 1985, No. 225 (Adj. Sess.), § 21.

§ 1006. Executive clerk and Executive messenger.

The Executive clerk shall be paid weekly compensation and expenses at the rates allowed to members of the General Assembly during a session of the General Assembly, such compensation and expenses to be paid from the appropriation for the Executive Office of the Governor; and the Executive messenger shall be paid the same compensation and reimbursement for expenses as pages of the General Assembly under 2 V.S.A. § 64 , such compensation and expenses to be paid out of the appropriation for legislative expenses.

HISTORY: Amended 1963, No. 115 , § 1, eff. April 3, 1963; 1966, No. 53 (Sp. Sess.), § 3, eff. Jan. 5, 1966; 1973, No. 117 , § 18, eff. retroactively from Jan. 1, 1973; 1979, No. 141 (Adj. Sess.), § 2; 1981, No. 91 , § 4, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 9, eff. July 4, 1982.

§ 1007. Lieutenant Governor.

1. The Lieutenant Governor shall be paid his or her expenses when away from Montpelier or his or her home in the interest of the State.
2. During any session of the General Assembly, the Lieutenant Governor is entitled to receive the same expenses authorized for members of the General Assembly by subsection 1052(b) of this title.

HISTORY: Amended 1961, No. 285 , § 3; 1969, No. 86 , § 2.

§ 1008. Repealed. 1985, No. 225 (Adj. Sess.), § 21.

§ 1009. Repealed. 1961, No. 285, § 5, eff. Aug. 1, 1961.

§ 1010. Members of certain boards.

1. Except for those members serving ex officio or otherwise regularly employed by the State, the members of the following boards shall be entitled to receive $50.00 in per diem compensation:
   1. Board of Bar Examiners
   2. Board of Libraries
   3. Vermont Milk Commission
   4. Board of Education
   5. State Board of Health
   6. Emergency Board
   7. Board of Liquor and Lottery
   8. Human Services Board
   9. State Fish and Wildlife Board
   10. State Board of Mental Health
   11. Vermont Employment Security Board
   12. Capitol Complex Commission
   13. Natural Gas and Oil Resources Board
   14. Transportation Board
   15. Vermont Veterans’ Home Board of Trustees
   16. Advisory Council on Historic Preservation
   17. The Electricians’ Licensing Board
   18. [Repealed.]
   19. Emergency Personnel Survivors Benefit Review Board
   20. Community High School of Vermont Board
2. 1. Notwithstanding any other provision of law, members of professional or occupational licensing boards or commissions, advisory boards or commissions, appeals boards, promotional boards, interstate boards, supervisory boards and councils, or any other boards, commissions, or similar entities that are not listed in subsection (a) of this section but are otherwise entitled by act of the General Assembly to receive per diem compensation, shall be entitled to receive per diem compensation in the amount of $50.00 per day for each day devoted to official duties. This subsection shall not reduce the amount of per diem compensation provided by act of the General Assembly to members of boards or commissions entitled to receive more than $50.00 per day. (b) (1) Notwithstanding any other provision of law, members of professional or occupational licensing boards or commissions, advisory boards or commissions, appeals boards, promotional boards, interstate boards, supervisory boards and councils, or any other boards, commissions, or similar entities that are not listed in subsection (a) of this section but are otherwise entitled by act of the General Assembly to receive per diem compensation, shall be entitled to receive per diem compensation in the amount of $50.00 per day for each day devoted to official duties. This subsection shall not reduce the amount of per diem compensation provided by act of the General Assembly to members of boards or commissions entitled to receive more than $50.00 per day.
   2. “Per diem” means the amount of compensation to which a member of a statutory board or commission is entitled for:
      1. attendance at a regular or special meeting of such board or commission or any committee thereof; or
      2. performance of other duties directly related to the efficient conduct of necessary board business as assigned and approved by the chairperson, provided that payment for such duties shall be at the per diem rate prorated for actual time spent performing duties. Proration shall be calculated based on an eight-hour day. Under no circumstances shall the daily payment exceed the per diem amount.
3. The members of the boards and commissions, including those members serving ex officio or otherwise regularly employed by the State, shall be entitled to receive their actual and necessary expenses when away from home or office upon their official duties.
4. Notwithstanding the provisions of subsections (a) and (b) of this section, a member shall not be entitled to receive State per diem compensation for any meeting or other official duty for which specific compensation is provided by another source.
5. The Governor may authorize per diem compensation and expense reimbursement in accordance with this section for members of boards and commissions, including temporary study commissions, created by Executive Order.
6. Members of the Parole Board shall be entitled to receive $100.00 per diem for each day of official duties together with reimbursement of reasonable expenses incurred in the performance of their duties.

HISTORY: Amended 1959, No. 329 (Adj. Sess.), §§ 19(b), 22, 42, 46(b), eff. March 1, 1961; 1963, No. 193 , § 16, eff. June 28, 1963; 1964, No. 22 (Sp. Sess.), § 1, retroactive to July 1, 1963; 1967, No. 115 ; 1967, No. 319 (Adj. Sess.), §§ 4, 5, eff. March 22, 1968; 1969, No. 226 (Adj. Sess.), § 3, eff. March 31, 1970; 1973, No. 101 , § 1; 1973, No. 154 (Adj. Sess.), § 5, eff. March 15, 1974; 1973, No. 174 (Adj. Sess.), § 1; 1973, No. 258 (Adj. Sess.), § 1; 1973, No. 266 (Adj. Sess.), §§ 17, 27, eff. July 1, 1974; 1981, No. 91 , § 24, eff. July 5, 1981; 1981, No. 240 (Adj. Sess.), § 9, eff. April 28, 1982; 1981, No. 249 (Adj. Sess.), § 10, eff. May 4, 1982; 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1983, No. 188 (Adj. Sess.), § 5; 1983, No. 230 (Adj. Sess.), § 4; 1985, No. 6 , § 3; 1985, No. 242 (Adj. Sess.), § 313b; 1985, No. 245 (Adj. Sess.), § 2; 1985, No. 248 (Adj. Sess.), § 2; 1985, No. 249 (Adj. Sess.), § 2; 1985, No. 257 (Adj. Sess.), § 1; 1985, No. 269 (Adj. Sess.), § 3; 1987, No. 94 , §§ 1, 2; 1987, No. 96 , § 20; 1987, No. 121 , § 19; 1987, No. 183 (Adj. Sess.), § 17, eff. May 7, 1988; 1987, No. 229 (Adj. Sess.), § 2; 1987, No. 243 (Adj. Sess.), § 64, eff. June 13, 1988; 1987, No. 274 (Adj. Sess.), § 23; 1989, No. 253 (Adj. Sess.), § 17; 1989, No. 264 (Adj. Sess.), § 3; 1989, No. 288 (Adj. Sess.), § 3; 1991, 1989, No. 17 , § 8(a), eff. April 4, 1991; 1991, No. 236 (Adj. Sess.), § 5; 1993, No. 201 (Adj. Sess.), § 2; 1995, No. 79 (Adj. Sess.), § 4; 1997, No. 40 , § 75; 1997, No. 66 (Adj. Sess.), § 67b, eff. Feb. 20, 1998; 1997, No. 145 (Adj. Sess.), § 30; 1999, No. 49 , §§ 51(a), (b); 2001, No. 119 (Adj. Sess.), § 2; 2001, No. 149 (Adj. Sess.), § 37, eff. June 21, 2002; 2003, No. 122 (Adj. Sess.), § 78b; 2005, No. 63 , § 12; 2009, No. 135 (Adj. Sess.), § 25; 2011, No. 139 (Adj. Sess.), § 34, eff. May 14, 2012; 2013, No. 34 , § 22; 2018, No. 1 (Sp. Sess.), § 107; 2019, No. 61 , § 4; 2019, No. 128 (Adj. Sess.), § 12.

§ 1011. Repealed. 1971, No. 191 (Adj. Sess.), § 16.

§ 1012. Public Utility Commission.

The Chair of the Public Utility Commission shall be entitled to an annual salary that is the same annual salary to which each Superior Court judge is entitled. The other members of the Public Utility Commission, each of whom shall serve on a part-time basis, shall be entitled to an annual salary equal to two-thirds of the annual salary to which the Chair is entitled. The annual salary of the clerk of the Commission shall be fixed by the Commission with the approval of the Governor.

HISTORY: Amended 1959, No. 329 (Adj. Sess.), § 39, eff. March 1, 1961; 1967, No. 206 , eff. April 27, 1967; 1969, No. 303 (Adj. Sess.), § 1, eff. April 10, 1970; 1973, No. 247 (Adj. Sess.), § 2; 1977, No. 222 (Adj. Sess.), § 14, eff. July 2, 1978; 1979, No. 141 (Adj. Sess.), § 17; 1979, No. 204 (Adj. Sess.), § 33, eff. Feb. 1, 1981; 1987, No. 121 , § 18; 1995, No. 182 (Adj. Sess.), § 26, eff. May 22, 1996; 1995, No. 182 (Adj. Sess.), § 26a, eff. July 1, 1998; 2015, No. 58 , § B.1111, eff. June 11, 2015.

§§ 1013, 1014. Repealed. 1971, No. 191 (Adj. Sess.), § 16.

§§ 1015-1017. Repealed. 1985, No. 225 (Adj. Sess.), § 21.