Vermont has increased contribution limits to candidates, PACs, and political parties.

By statute, contribution limits are reevaluated and adjusted based on the Consumer Price Index. A 2.1 percent increase was implemented allowing statewide candidates and PACs to receive $4,080 per election cycle, state Senate candidates to receive $1,530, and state representative candidates to receive $1,020.

Each limit applies to contributions from a single source or PAC.

This change is effective for two years, and thereafter, increases will apply for the term of two two-year general election cycles.

Lawmakers are currently considering a bill to strengthen the state’s ethics laws.

Senate Bill 8 would, among other things, prohibit legislators and executive officers from becoming a lobbyist for one year after leaving office; create an ethics commission to, in turn, create a state code of ethics; prohibit campaign donors from entering into no-bid contracts worth more than $50,000; and require municipalities to create conflict of interest policies.

The bill is expected to reach the full Senate this week.

The General Assembly convenes today, June 9, 2016, for a one-day veto session.

Gov. Peter Shumlin vetoed Senate Bill 230, an energy siting bill, and House Bill 518, dealing with the Clean Water Fund Board.

Regarding the Senate bill, Shumlin’s veto message indicated he wants to pass the bill, but would need certain changes. Proponents of the measure are hoping for a quick fix to return it to the governor’s desk.

The General Assembly has completed its business for the year and adjourned the 2016 legislative session on Friday, May 6, 2016, a day ahead of schedule.

By joint resolution of the House and Senate, lawmakers will reconvene on June 9 if Gov. Shumlin vetoes any bill, otherwise the legislature will be adjourned sine die.

The session’s conclusion marks the end of an era as Gov. Shumlin, Lt. Gov. Phil Scott, Senate President Pro Tem John Campbell, and House Speaker Shap Smith will not be returning next year.

The Vermont Legislature adjourned sine die Saturday, May 16, 2015 late in the evening after completing work on a new budget. The previous day, lawmakers passed a lobbyist disclosure bill to increase disclosure during the legislative session.

If signed by the governor, it would be one of the strictest disclosure laws in the country, requiring monthly reports while the legislature is in session.

The bill also mandates lobbyist reports within 48 hours of running mass media campaigns of $1,000 or more.

Photo of the Vermont State House by Jared C. Benedict on Wikimedia Commons.

While seeking $72,000 in fines and restitution from a former candidate for lieutenant governor for campaign finance violations, Attorney General Bill Sorrell is coming under fire for his own recent filings. A new report claims Sorrell failed to adequately report thousands of dollars of reimbursements he received from his campaign.

The newspaper Seven Days has pointed to 16 occasions in the last four years where it believes the campaign provided only a vague explanation of what Sorrell purchased and never disclosed who was paid.

Sorrell stated he has always tried to meet his disclosure obligations and he welcomes any input from the Secretary of State’s Office.

Gov. Peter Shumlin, when asked about the situation, said he does not plan to appoint an independent prosecutor to investigate.

Photo of Attorney General Bill Sorrell courtesy of the website for the Office of the Vermont Attorney General.

Gov. Peter Shumlin has finally won reelection following a vote of the state legislature. Shumlin received just 46.4 percent of the vote in November, less than the majority required by the state constitution, compelling the legislature’s action.

Scott Milne received 45.1 percent of the vote but, unlike previous runners-up, he did not concede the election.

By secret ballots cast in a joint session of the House and Senate, Gov. Shumlin received 110 votes to Milne’s 69.

Photo of Gov. Peter Shumlin by Community College of Vermont on Wikimedia Commons.

The Office of the Secretary State announced lobbying registration and reporting in Vermont is going digital. Beginning with the 2015-2016 biennium, registration and reporting will be accomplished solely through a new online management system.

Lobbyist disclosure reports due on January 25, 2015, covering the period from July 1 to December 31, 2014, will be the last paper filings accepted.

The online system will be available for use no later than January 1, 2015.

Republican attorney general candidate Shane McCormack is calling for tougher campaign finance rules for those holding the office. McCormack’s proposal would ban current service providers from contributing to a sitting attorney general and would prevent a donor from becoming a contractor after a successful campaign.

During a debate on Vermont Public Radio, McCormack revealed current attorney general Bill Sorrell accepted $8,000 from Dallas-based Baron & Budd, a law firm later hired as counsel. Sorrell defended the contribution by stating it was properly disclosed and the law firm was hired due to its expertise in the area being litigated.

Baron & Budd was hired following a recommendation from the Agency of Natural Resources to litigate a contaminated groundwater case against the fuel industry. Sorrell claims the agency was unaware of the contribution prior to making the recommendation.

The pro-life group Vermont Right to Life Committee filed a complaint with the state’s attorney general’s office against Vermont Leads and its independent expenditure PAC, Vermont Leads Political Action Committee. The complaint alleges transfers of money between the two groups violate campaign finance laws.

Act 90, enacted in January, states an independent expenditure PAC cannot be closely related to a political party or political committee if they make contributions to candidates. The treasurer of Vermont Right to Life Committee, Sharon Toborg, is asking the attorney general to clarify the statute’s language.

Assistant Attorney General Eve Jacobs-Carnahan believes the distinction will depend on communication between Vermont Leads and its PAC as well as their governance structure, activities, and spending.

Secretary of State Jim Condos announced candidates, parties, and political action committees are now able to file financial reports online.

Use of the online system is currently voluntary but becomes mandatory on January 1, 2015.

Electronic filing is available here.

On Wednesday, July 2, a federal appeals court affirmed the judgment of a district court; independent expenditure committees can lose the right to make unlimited expenditures in certain circumstances.

In Vermont Right to Life v. Sorrell , the U.S. Court of Appeals for the 2nd Circuit ruled a state-level super PAC was not functionally distinct enough from a sister committee actively contributing to candidates and parties. Whether a group is functionally distinct from a non-independent-expenditure-only entity depends on factors including, but not limited to, the overlap of staff and resources, the lack of financial independence, the coordination of activities, and the flow of information between the entities.

Creating two committees and managing two separate bank accounts is not sufficient to prove the committees’ funds are actually treated as separate. To alleviate the danger of quid pro quo corruption, contribution limits may apply to super PACs when they are not functionally distinguishable from committees directly contributing or coordinating expenditures with campaigns.

House Bill 735, signed by the governor on June 16, 2014, made changes to the lobbyist fee structure. Effective July 1, 2014, the initial registration fee for lobbyists and lobbyist employers will increase from $25 to $60. The employer fee for each additional lobbyist will increase from $5 to $15. The lobbyist fee for each additional employer will also increase from $5 to $15.

Senate Bill 86 was amended this year to include additional changes to the state’s lobbying law. Effective July 1, 2014, the Secretary of State’s Office will no longer mail disclosure forms to lobbyists and employers. Forms will be made available on the website no later than 30 days prior to the deadline.

Additionally, contracts with legislators or administrative officials are no longer treated as a type of expenditure and will be reported on their own line on the form.

The Vermont attorney general has issued guidance regarding the state’s contribution limits effective through the end of the year. His guidance interprets the $1,000 per election limit as meaning a candidate may accept a total of $2,000 for the 2013-2014 election cycle, even if the candidate does not face a primary contest. Candidates who lose their primary election may also accept the full $2,000. This guidance is effective for contribution limits only through the end of the year, as Vermont’s new contribution limits effective January 1, 2015 are per two-year election cycle rather than per election.

The full text of the attorney general’s guidance is here.