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Subchapter 002: MANAGEMENT
§ 431. Depositories of State funds
(a) 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.
(b) 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. (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. (Amended 2007, No. 121 (Adj. Sess.), § 26.)
§ 433. Investments of State money
(a) 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.
(b) 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.
(c) 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. (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
(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:
(A) 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;
(B) 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
(C) 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 14A V.S.A. § 902. 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.
(b) 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
14A V.S.A. § 902. (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; 2021, No. 105 (Adj. Sess.), § 447, eff. July 1, 2022.)
§ 435. General Fund
(a) 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.
(b) 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) [Repealed.]
(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) [Repealed.]
(10) 37 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. (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; 2021, No. 105 (Adj. Sess.), § 448, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 77, eff. June 17, 2024.)
§ 435a. Tobacco Litigation Settlement Fund
(a) 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.
(b) 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.
(c) 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). (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 created by the General Assembly available amounts
as the Treasurer may determine to be necessary or desirable for the purpose of defraying
the expenses of government, including the payment of notes issued for these purposes.
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 falls on a Saturday or Sunday, and ending
on January 10 of the succeeding year. Not later than the last day of the period during
which the funds were borrowed, the State Treasurer shall transfer to any fund from
which initial borrowing has been made an amount equal to the borrowed amount, together
with interest at the rate as the State Treasurer in the Treasurer’s sole discretion
shall determine. (Added 1997, No. 61, § 254; amended 2005, No. 71, § 34a; 2021, No. 105 (Adj. Sess.), § 449, eff. July 1, 2022.)
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Subchapter 003: DISBURSEMENTS
§ 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. (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
(a) 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.
(b) 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. (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. (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 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 the 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. (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; 2021, No. 105 (Adj. Sess.), § 450, eff. July 1, 2022.)
§ 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. The Commissioner shall issue the warrant
pursuant to this section, and no other officer shall issue a warrant on the State
Treasurer. (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; 2021, No. 105 (Adj. Sess.), § 451, eff. July 1, 2022.)
§ 466. Requisitions
(a) 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 a warrant on the Treasurer for funds
necessary for the expenses. Advances shall not be made until the 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 the bond shall be paid by the State.
(b) 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 adopted by the State
Treasurer.
(c) 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. (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; 2021, No. 105 (Adj. Sess.), § 452, eff. July 1, 2022.)
§ 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. (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. (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 warrants, on
certificate of the Attorney General that the Attorney General 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. § 2643, 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. (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; 2021, No. 105 (Adj. Sess.), § 453, eff. July 1, 2022.)
§ 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. (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.)
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Subchapter 004: RECEIPTS
§ 501. Repealed. 1997, No. 147 (Adj. Sess.), § 261b.
§ 502. Monies to be paid over without deduction
(a) 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.
(b) [Repealed.]
(c) 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. (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 more frequently if the Commissioner of Finance and Management so directs,
Superior Court clerks and other collectors and receivers of public money shall pay
all money collected or held by them into the State Treasury. (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; 2021, No. 105 (Adj. Sess.), § 454, eff. July 1, 2022.)
§ 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. (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. (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 the money
a receipt for payment in the form as shall be prescribed by the State Treasurer. (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; 2021, No. 105 (Adj. Sess.), § 455, eff. July 1, 2022.)
§ 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. (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. (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. (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. (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. (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. (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. (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. (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. (Added 1979, No. 205 (Adj. Sess.), § 151, eff. May 9, 1980; amended 1997, No. 155 (Adj. Sess.), § 23.)
§ 583. Credit card payments
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) [Repealed.] (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
(a) 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.
(b) 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.
(c) 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.
(d) The State shall not assume any liability for lost or stolen credit cards nor any other
legal debt owed to the financial institutions.
(e) The State Treasurer is authorized to adopt such rules as may be necessary to implement
the Vermont Clean Water Affinity Card Program. (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.)
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Subchapter 006: EXECUTIVE AND JUDICIAL BRANCH FEES
§ 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. (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”:
(A) 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.
(B) The following charges are exempt from the provisions of this subchapter:
(i) a charge established under the jurisdiction of the Public Utility Commission as provided
by 30 V.S.A. §§ 20, 21, and 218;
(ii) a charge established by the Board of Liquor and Lottery as provided by Title 7;
(iii) 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;
(iv) monies paid into an enterprise or internal service fund;
(v) 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;
(vi) monies from interest and premium payments, rent or lease payments, proceeds of fair
market or negotiated sales, or sales of commercially available items;
(vii) 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;
(viii) a charge established by the Department of Financial Regulation as authorized by law;
and
(ix) any other charge exempt by law. (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:
(A) transcripts;
(B) reproductions not covered by 1 V.S.A. § 316(d);
(C) conferences;
(D) forms for commercial use;
(E) publications of the department;
(F) costs of distribution of department materials;
(G) advertising for department services or products;
(H) training;
(I) charges to attend one-time department events; and
(J) 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. (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. Repealed. 2019, No. 59, § 38, as amended by 2021, No. 184 (Adj. Sess.), § 57, eff. July 1, 2025.
(Added 2019, No. 59, § 37; amended 2021, No. 184 (Adj. Sess.), § 58, eff. July 1, 2022; repealed on July 1, 2025 by 2021, No. 184 (Adj. Sess.), § 57.)
§ 605. Consolidated Executive Branch annual fee report and request
(a) The Governor shall, not 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. 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.
(b) 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.
(c) 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.
(d) 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:
(A) 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;
(B) the inflationary pressures that have arisen since the fee was last set;
(C) the effect on budgetary adequacy if the fee is not increased;
(D) the existence of comparable fees in other jurisdictions;
(E) policies that might affect the acceptance or the viability of the fee amount; and
(F) other considerations.
(3) Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
(e) 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.
(f) [Repealed.] (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; 2021, No. 105 (Adj. Sess.), § 456, eff. July 1, 2022; 2025, No. 18, § 54, eff. May 13, 2025.)
§ 605a. Consolidated Judicial Branch fee report and request
(a) 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.
(b) 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.
(c) 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:
(A) 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;
(B) the inflationary pressures that have arisen since the fee was last set;
(C) the effect on budgetary adequacy if the fee is not increased;
(D) the existence of comparable fees in other jurisdictions;
(E) policies that might affect the acceptance or the viability of the fee amount; and
(F) other considerations.
(3) Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
(d) 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.”
(e) 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. (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. (Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22; 2017, No. 155 (Adj. Sess.), § 2.)
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Subchapter 007: FORFEITURE OF PUBLIC EMPLOYEE RETIREMENT BENEFITS
§ 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. (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:
(A) any offense under 13 V.S.A. chapter 21;
(B) false personation as defined in 13 V.S.A. § 2001;
(C) false pretenses or tokens as defined in 13 V.S.A. § 2002;
(D) grand larceny as defined in 13 V.S.A. § 2501;
(E) person holding property in official capacity or belonging to the State or a municipality
as defined in 13 V.S.A. § 2537;
(F) false claim as defined in 13 V.S.A. § 3016;
(G) 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:
(i) a larceny;
(ii) an embezzlement;
(iii) the fraudulent conversion of money, property, or other valuable things for personal
or other use; or
(iv) an intent to defraud; or
(H) 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. (Added 2013, No. 2, § 1.)
§ 623. Forfeiture of public employee retirement benefits
(a) 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.
(b) 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.
(c) 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.
(d) A copy of the complaint shall be served on the member and any known spouse, dependent,
or designated beneficiary of the member.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) 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.
(j) 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. (Added 2013, No. 2, § 1.)
§ 624. Venue, procedure, and appeals
(a) 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.
(b) 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.
(c) 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. (Added 2013, No. 2, § 1.)
§ 625. Return of contributions; exemptions; qualified domestic relations orders
(a) 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.
(b) 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.
(c) 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.
(d) 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. (Added 2013, No. 2, § 1.)
§ 626. Application; collective bargaining agreements
(a) This subchapter shall not apply to retirement benefits that accrued prior to July
1, 2013 or to crimes committed before July 1, 2013.
(b) 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. (Added 2013, No. 2, § 1.)
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Subchapter 008: VERMONT FALSE CLAIMS ACT
§ 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:
(A) is presented to an officer, employee, or agent of the State; or
(B) 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:
(i) provides or has provided any portion of the money or property that is requested or
demanded; or
(ii) 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”:
(A) means that a person, with respect to information:
(i) has actual knowledge of the information;
(ii) acts in deliberate ignorance of the truth or falsity of the information; or
(iii) acts in reckless disregard of the truth or falsity of the information; and
(B) 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:
(A) 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
(B) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 631. Prohibition; penalties
(a) 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. § 1395nn(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. § 1395nn;
(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 in the agreement or contract 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:
(A) a date that is 120 days after the date on which the false claim or receipt of overpayment
was identified; or
(B) the date any corresponding cost report is due, if applicable; or
(12) conspire to commit a violation of this subsection.
(b) 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.
(c) 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.
(d) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 457, eff. July 1, 2022.)
§ 632. Civil actions for false claims
(a) 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.
(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:
(A) the complaint; and
(B) 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:
(A) proceed with the action, in which case the action shall be conducted by the Attorney
General; or
(B) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 633. Rights of the parties to qui tam actions
(a) 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.
(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:
(A) limiting the number of witnesses the relator may call;
(B) limiting the length of the testimony of such witnesses;
(C) limiting the relator’s cross-examination of witnesses; or
(D) 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.
(c) 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, the Attorney General 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.
(d) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 458, eff. July 1, 2022.)
§ 634. Alternate remedies available to determine civil penalty
Notwithstanding sections 632 and 633 of this chapter, the Attorney General may elect
to pursue the Attorney General’s 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. (Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 459, eff. July 1, 2022.)
§ 635. Payments to relators; limitations
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 636. Certain actions barred
(a) 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.
(b) 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.
(c) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 637. Awards of costs and attorney’s fees against relators; liability
(a) 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.
(b) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 638. Relief from retaliatory actions
(a) 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.
(b) 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.
(c) 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.
(d) 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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 639. Limitation of actions; final judgments in criminal proceedings
(a) 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.
(b) 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.
(c) 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.
(d) 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. (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. (Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 641. Remedies under other laws; legislative construction
(a) 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.
(b) It is the intent of the General Assembly 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. (Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 460, eff. July 1, 2022.)
§ 642. Civil investigative demands
(a) 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:
(A) to produce such documentary material for inspection and copying;
(B) to answer in writing written interrogatories with respect to such documentary material
or information;
(C) to give oral testimony concerning such documentary material or information; or
(D) 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.
(A) 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.
(B) If such demand is for the production of documentary material, the demand shall:
(i) describe each class of documentary material to be produced with such definiteness
and certainty as to permit such material to be fairly identified;
(ii) 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
(iii) identify the false claims law investigator to whom such material shall be made available.
(C) If such demand is for answers to written interrogatories, the demand shall:
(i) set forth with specificity the written interrogatories to be answered;
(ii) prescribe dates at which time answers to written interrogatories shall be submitted;
and
(iii) identify the false claims law investigator to whom such answers shall be submitted.
(D) If such demand is for the giving of oral testimony, the demand shall:
(i) prescribe a date, time, and place at which oral testimony shall be commenced;
(ii) identify a false claims law investigator who shall conduct the examination;
(iii) specify that such attendance and testimony are necessary to the conduct of the investigation;
(iv) notify the person receiving the demand of the right to be accompanied by an attorney
and any other representative; and
(v) 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.
(E) 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.
(F) 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.
(G) 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.
(b) 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:
(A) 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
(B) 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.
(c) 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.
(d) 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:
(A) 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;
(B) delivering an executed copy of such demand or petition to the principal office or
place of business of the partnership, corporation, association, or entity;
(C) 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
(D) 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:
(A) delivering an executed copy of such demand or petition to the person;
(B) 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
(C) by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
(e) 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.
(f) 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:
(A) in the case of a natural person, the person to whom the demand is directed; or
(B) 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.
(g) 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:
(A) in the case of a natural person, the person to whom the demand is directed; or
(B) 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.
(h) 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.
(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, 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.
(A) 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.
(B) 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.
(i) 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.
(A) 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:
(i) 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
(ii) 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 (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:
(i) 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
(ii) 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
(C) 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 rules 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. (Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2017, No. 11, § 57; 2019, No. 14, § 74, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 461, eff. July 1, 2022.)