Background of Act 171’s Conflict-of-Interest Provisions
Act 171, enacted in June 2024, introduced a statewide Municipal Code of Ethics, effectively overriding previous local control in favor of a consistent standard across Vermont. It repealed earlier municipal statutes (namely, 24 V.S.A. § 1984 and § 2291(20)) that allowed individual municipalities to tailor their own conflict-of-interest or ethics policies. The purpose was to strengthen ethical oversight, ensure transparency, and unify expectations for all municipal officers, thereby eliminating variation and potential gaps across towns and cities.
Which Entities Must Comply?
All municipalities—that includes towns, cities, and incorporated villages—must adopt and enforce the statewide Municipal Code of Ethics starting January 1, 2025. They are no longer authorized to impose their own standalone conflict-of-interest laws.
What about CUDs?
CUDs are not explicitly governed by Title 24’s Municipal Code of Ethics. However, since they are regional entities formed by two or more municipalities under Title 30, Chapter 82, to manage shared telecommunications infrastructure, it may be inferred that they must comply with this provision in Act 171.
More on that…..
Title 24, Chapter 60 explicitly applies to municipalities, defined as cities, towns, or villages. The statutes stipulate responsibilities like posting the Code of Ethics on municipal websites, designating ethics liaisons, creating enforcement procedures, etc. CUDs, while municipal organizations, are not listed as municipalities in that context. Title 30 defines their formation and governance but doesn’t incorporate them within the obligations of the Municipal Code of Ethics.
Who Among Municipal Officials Must Follow the Code?
Act 171 applies broadly to all municipal officers. This encompasses Members of legislative bodies (e.g., selectboards, city councils), Quasi-judicial body members (e.g., planning or zoning boards), Advisory committee members, like budget or planning commissions, and Administrative staff, including department heads, clerks, treasurers, managers, inspectors, auditors, moderators, water commissioners, and others.
Training Requirements
All municipal officers in office on January 1, 2025, must complete state-provided ethics training by September 25, 2025—and every three years thereafter. Officers who assume office after January 1, 2025, must complete the training within 120 days of taking office, and then every three years thereafter.
Digging into the Details: Conflict of Interest (24 V.S.A. § 1992)
This section is part of Title 24, Chapter 060: Municipal Code of Ethics, effective January 1, 2025—but oriented toward the new statewide framework required under Act 171 (H. 875):
24 V.S.A. § 1992. Conflicts of interest [Effective January 1, 2025]
(a) Duty to avoid conflicts of interest.
In the municipal officer’s official capacity, the officer shall avoid any conflict of interest or the appearance of a conflict of interest. The appearance of a conflict shall be determined from the perspective of a reasonable individual with knowledge of the relevant facts.
(b) Recusal. If a municipal officer is confronted with a conflict of interest or its appearance, the officer must immediately recuse themself from the matter, abstain from participating or influencing decisions—unless the exceptions under subdivisions (2) and (5) apply. After recusal, the officer may still act if they are a party in litigation, but only as a member of the public. The officer must also make a public statement explaining the recusal.